SRI MALAI GRANITES AND EXPORTS
CHAPTER 1
INTRODUCTION
Business Familiarization Reportis an activity where a job taken by a student in
order to learn Profession or Trade in their Academics. It gives an exposure to the real work
environment and helps to develop Technical, Social and Communication skills.
This report is brief of about “Sri Malai granites and exportspvt.ltd”, syno 88/345
Dasanur road,badanaguppe chamarajanagar 571313, their working environment, organization
culture, policies, a brief study about the Company profile and Product profile. It also contains
a summary about each department, their functions, their policies and operations.
OBJECTIVES OF THE STUDY
The main objective of the study is as follows:
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To study about the history and functions of different department
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To understand about SWOT analysis of Sri malai granites and exports
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To study about different products ,exports and import of company
METHODS OF DATA COLLECTION:
The information is collected through..
1. Primary Source
2. Secondary Source.
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SRI MALAI GRANITES AND EXPORTS
1. PrimarySource: The information was collected through direct interaction with the
employees, department head and proprietor.
2. Secondarysource:The information was collected from company official websites.
Data Analysis and Interpretation:
The collected data was analysed to draw meaningful inference. The project report
focuses on overall Organizational structure of The Sri Malai granites, which is becoming
familiar granite manufacturing factory.
History of Granite industry
India is a major exporter of natural stone, which is the Secord largest foreign
exchange earner for India besides Iron are in minerals category. The Export Oriented Unit
(EOU) scheme which was introduced in 1960 helped the industry to modernize as it opened a
window to usher in latest technologies for stone. Processing India has immense potential for
growth of exports in this sector.
India has been known for decades for its stone industry and it is one of the biggest
exporters of natural stone in the world. There is something about natural stones, particularly
Indian natural stone that turn them very attractive before all the natural stone lovers across
the world. It is the fascination to have them that bring out such a fabulous business
opportunity. India natural stone exporters are doing a fine job by trying to top the market.
India is the major exporter of natural stone and granite which is the 2 nd largest foreign
exchange earner for Indian besides iron are in minerals category. The export of granite in
2012-2013 was around 4730 crores as against Rs 4430 crores in the previous year.
The share of granite monuments in total granite exporter of monuments and
commenced as for back 1947 when hand punched monuments were exported to UK.
The demand for natural stones can have a number of reasons. Apart from the aesthetic
beauty associated with them there are some specific qualities that make them all the more
useful. For example, sandstone and granite are used widely for their comprehensive strength.
Some other qualities of granite like durability give it preference in architectural
ornamentals works. Some way marble is an effective corrosion and germs repellant.
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In the some way limestone, quartzite and mosaic have their own specific qualities
which turn them as the prefer real choice of clients monuments are as the prefer real choice of
clients monuments are predominately made up of Granit and the entire monument industry is
based in southern India. The majority of factories are in Tamilnadu.
The main markets are the USA, Canada, Australia, New Zealand which used to be the
main buyer in the late eighties and early nineties, China took over the market completely.
Incidentally China has emerged as the largest player in stone industry surpassing even Italy
form the position with the threat to the Indian industry by China and few other East European
countries like Poland, Romania, and South Africa.
The many rooms, walls and arches of Fort Knox, in Bucksport, were constructed of
Maine granite in 1832. The reason was not just because the site was close to coastal quarries,
Maine granite was known across the U.S. and Europe for its strength, size and beauty, said
Steve Haynes, Director of the Maine Granite Industry Historical Society on Mount Desert
Island.
“It was a very important industry here because of the large granite plutons,” Haynes said.
Plutonic granite comes from crystallized magma cooled slowly deep below the earth
surface. The further down from the earth’s crust and the slower it is cooled, the stronger the
granite.
In the quarries developed along the coast of Maine, granite was found up to five miles
deep. In Sullivan, the granite plutons are more than 420 million years old, Haynes said.
He explained the scope of Maine’s granite industry in a detailed talk at the Wilson
Museum on July 16, describing each quarry founded on the Maine coastline the kind and
quantities of equipment used for mining, splitting and transporting the granite; the varieties of
granite found in the many buildings the granite was used to construct.
Granite was cut from below the earth’s crust in large sheets by quarrymen who came
to Maine to share their expertise.
“Men from Scotland, Finland, and Swedenall came to America to perform the cutting
of the sheet,” Haynes said. “These men believe they were building the pyramids of America.”
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Post offices, court houses, state houses and cathedrals are some of the buildings that were
constructed from Mine granite in the 1800s.
Granite from the North Jay, Maine, and quarry was “the white granite of New
England,” Haynes said, and used to build General Grant’s tomb, the Hahnemann Monument
in Washington, D.C. and closer to home, a cathedral in Lewiston. Granite mined in Hallowell,
prized for its softness that allowed easier carving, built the Gettysburg Monument.
“There’s no other quarry in the U.S. that would offer 72-foot pieces,” Haynes said.
Coarse, strong granite formed from larger crystals deep in the earth and cooled slowly, “the
stone cutters love this granite because it carves so nicely.”
Off Stonington, the quarry on Crotch Island produced lavender-tinged granite that
polished well. The quarry opened in 1872, with quarrymen loading the granite sheets onto the
decks of schooners for transport. “These men were very brave,” jumping from rock to rock
on deck, Haynes said. Crotch Island granite was used in so many buildings, “I could go on for
days with the contracts out of Stonington,” Haynes said.
Granite from Some Sound on Mount Desert Island, mined for the Standard Granite
Company, was considered the “best monument granite in the U.S.,” Haynes said. The same
granite rock is found in Cadillac Mountain, formed by granite pushed deep beneath the earth
by volcanic force.
The Maine granite industry peaked around 1900, but in 1920, a new market opened,
supplying street “pavers,” blocks of granite exported to New York, New Orleans and
Philadelphia to pave their streets. Each city required a slightly different size paving stone
depending on the size of their horses, mules, oxen and carts.
The quarrymen used skill and specialized tools to split the granite without shattering
it, whether for a one-foot paver or a 50-foot column. In Hallowell, for example, the list of
quarry equipment ranged from 18 derricks and two traveling cranes to 14 pneumatic plug
drills and pneumatic hand drills.
Today the stone dust unearthed by granite quarrying in the 19th century fertilizes
plant life around the quarry sites, but the buildings live on around the world.
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COMPANY PROFILE OF SRI MALAI GRANITES AND
EXPORTS
Introduction
Granite is a product for decorating walls or interior space of buildings. It is now one
of the most essential building materials for the decoration, durability and protection of the
buildings.
GRANITE
Granite is igneous rock of visible crystalline formation and texture. It is composed of
feldspar (usually potash feldspar and oligoclase) and quartz, with a small amount of mica
(biotitic or muscovite) and minor accessory minerals, such as zircon, apatite, magnetite,
limonite, and sphere. Granite is usually whitish or grey with a speckled appearance caused by
the darker crystals. Granite is mainly preferred for its use in the exterior applications
including funeral trade2. Variety of colours in Granite is traded in the world market with
different price tags. High price is fetched for the rare colours including Jet-Black, Pearl Blue
and Deep Green. These colours are found in South Africa, Brazil, Norway, India.
The specific gravity of Granite ranges from 2.63 to 3.30. Granite has greater strength
than sandstone, limestone or Marble and is correspondingly more difficult to quarry. It is an
important building stone, and its maximum usage is in the external flooring and facing
followed by internal flooring.
MARKET POTENTIAL
The international granite trade was valued at $2.5 billion in 2005, with production of
about 19.6 million tons. Italy is the world leader in marble, granite, and stone sector,
exporting over 38% of finished material and importing 18% of the world trade. India’s
production is 1.3 m tons annually, with less than 10% exported (0.03% of world trade in
2002).
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OPPORTUNITY RATIONALE
India is bestowed with enormous mineral resources including Marble and Granite.
Granite is used for both construction purposes and Handicrafts manufacturing, whereas,
Onyx which is a semi- transparent and generally used by handicrafts manufacturing industry.
Availability of high quality Granite reserves in India is great quantities and the demand of its
products in the export markets i.e. European Union countries, Central Asian countries etc.
make this sector highly attractive. Foreign tourists are the main customers of the products
made of marble and onyx and it has reached an all-time record Rs.763 million in 2004.
NATURE OF WORK ON GRANITE OR SILICEOUS STONE
Because of its uniform texture and hardness, Granite is preferred for external use. It is
more durable as compared to Marble and is economical in maintenance. Granite does not
need re-polishing once it is polished and fixed at the desired place, while Marble needs
polishing every year or at least once in two years. The granular formation and compactness of
Granite makes it non-porous and non-absorbent hence more hygienic for the use in
laboratories, kitchen, washrooms and other water exposed areas. Uniformity in texture gives
better look to Granite and is thus convenient in its application at the desired place. Majority
of the cities located closer to the sea, provide greater markets for Granite as it can withstand
the weather effects (moisturizing) better than Marble. Usage of Granite in special work,
mainly involved in the making and fabrication of sculptures, decoration items etc. Because if
compared withMarble grannie is affordable. This is simply because Granite is a harder
material to work on due to its compaction and silica contents. The distribution of granite use
is illustrated in the figure below.
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percent
special ; 7%
funeral trade ; 20%
others ; 5%
strctural works; 10%
external
stairs & similar;
7% flooring; 34%
external facing; 7%
internal flooring; 10%
Quality Control
Quality is of utmost importance in Sri Malai stones and Sri Malai Exports and is
achieved by adopting continuous up-gradation of meticulous processing procedures. We
strive hard to keep up the high quality standards through indomitable spirit of excellence. Our
approach towards quality ensures that our clients receive the finest products and services at
all times.
Our Vision
To become a leader in Stone Manufacturing Industry through constant innovation,
best service and superior customer satisfaction.
Our Mission
Delivery on time
Highest Quality products
Best service and enhanced customer satisfaction.
Benefits Provided By The Industry To The Employees
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1
Medical reimbursement scheme: The purpose of this scheme is to reimburse
expenses incurred by the workers for medical treatment and purchase of medicine,
hospitalization expenses for the alignment.
2
Provident fund: This is a kind of fund which is a forced saving intended to provide a
large funds sum amount.
3
Workmen compensation: It is providing compensation depending upon the injury
caused to the worker and later compensation is calculated and it given to the workers.
4
Bonus: It is provided to the employees once in a year that is during Ugadi festival
period.
Infrastructure
We have around 5-quarries (3 are under our control) which are rich in premium black
granites. Further we made long-term arrangements with quarry owners for premium Black
granites, Black Galaxy etc.
We set up an export oriented unit to manufacture cut and polished granite monuments,
some part for slabs / panels, with a capacity of 35-40 thousand square feet of slabs and
15,000 sq-mtr of monuments. Commercial production commenced in Jan.2010 (slab section)
and Feb 2-13 (Monument section). We are producing Slabs (Random and cut to size), Vanity
Tops. And we are operating quarries in Karnataka specifically Chamarajanagar for Black
granites.
Factory Location
The Industry is located in sy no 88/345, Dasanur road, behind Badanaguppe railway
station Badanaguppe,The industry having the area of 4.5 acres of land on its assets.
Chamarajanagar Dist. Pin no: - 571313. This is 15 km away from Chamarajanagar.
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ORGANISATION STRUCTURE
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SRI MALAI GRANITES AND EXPORTS
PRODUCT PROFILE
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Sri Malai stones and Sri Malai Exports engaged in the manufacture of granite
products such as granite slabs/tiles, monuments, decorative pieces, etc. We also manufacture
high strength &non breaking special space and absolute Black Granite Slabs from quality
natural stone thus ensure superior finish and durability.
PRODUCT DESCRIPTION AND APPLICATION
In Sri Malai stones and Sri Malai Exports the collective description of natural stone,
which has been extracted from the earth in an orderly manner, further worked by cutting and
processing, then used in Various building activities either structurally or for decorative
purposes. It includes panelsand tiles from marble, granite, slate, sandstone basalt and other
related materials.
The term "Granite" is derived from Latin word "Granum" meaning "grain" because of
its Granular nature. Granite occupies a prominent place among dimensional stones on
account of its hardness, durability, capability to take mirror polish and fascinating colours.
The most common applications of granite are in the manufacture of slabs and blocks for the
building construction sector.
Block sizes may vary according to the deposit. The most common block size is 22
tonnes of a size approximately 3.0m x 1.5m x 1.5m. However, blocks as small as 6 tonnes
and often 11 tonnes could be produced, 22 tonnes is generally the largest due to transport
requirements.
Granite Slabs
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Thickness 16mm, 18mm, 20mm, 30mm,40mm, and per the requirement.
Granite Monuments
Sri Malai Stones and Exports has embraced technology throughout the year to become
the state of the art manufacturing facility memorial business can rely on. These investment
have been assets in being able to manufacture very impressive design. The advantage of
technology balanced with 3rd and 4th generation stone craftsmen gives Sri Malai Stones and
Exports the ability to manufacture innovative, practical and top quality stone/granite
products.
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Black Granite Quarries & Rough Blocks
We supply genuine, high quality granite rough blocks and cut to size dimensional
blocks of various sizes and shapes worldwide, such blocks are also known as Industrial
Minerals.
A range of Colors, different textures ranging from medium- to coarse-grained and
several patterns are available. Rough blocks and Cut to size granite blocks from our quarries
and factory maintain the compulsory and individualistic characteristics of strength and
resistance to ageing and appearance. Our granite rough blocks are created by a chain of
procedures and quality management processes which are fully mechanized operations. Rough
blocks are separated from the mass of rock crust it has been lying upon and crystallized for
millions of years.
The extracted Rough blocks are cut using diamond wire saws/wire saws with coated
diamond beads which are lubricated to cool the cut and processes ensure removal of debris,
We have one of the best quarries which are located in chamarajnagar, South India, which has
huge natural reserves of best Black granite, which naturally results in granite blocks of the
highest quality available to customers worldwide.
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Kerbstones
We provide comprehensive array of Kerbstones that includes assorted shapes and
sizes. The Kerbstones offered by us are highly efficient and durable.
Range
Chiselled Kerbstone
Kerbstone Cubic
Specifications
Finish
Both sides natural split surface finish
Edges
All edges to be hand dressed (Rock pitch)
Sizes
Length : 3', 4', 5', 6' (tolerance of ±1")
Width : 9", 12", 16", 18", 24" (tolerance of ±1")
Thickness
6"-7" (more as per required)
Packing Specifications
Packing on flat wooden pallets, easy operation by fork lift
No. of pcs.per pallet : 4-12, depending on size
No. of pallets per container: 20-26, depending on size
Weight: Roughly 35-37 Kg. per ft.2
Quantity: One 20' container will contain 650-700 ft.2 Weighing 25-26 MT gross.
Our Chiselled Kerbstone is widely demanded by the builders and various construction
companies. These Chiselled Kerbstones are popular in the national and international market
for its superior quality.
We have been delivering quality end product in the markets from past 5 years. Now
we would like to extend these services into the Indian markets. It simply knows more about
how to build, that is the definable "Wow" factor into every single new home they construct.
As a value added service we now assist. our clients with every step throughout the property
transaction and beyond.
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INDUSTRIAL PROFILE
Size of the Industry
100 manufacturers in India for Granites and
there are also a few trading companies.
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Geographical
distribution
Tamil Nadu, Andhra Pradesh, Karnataka,
Maharashtra, Assam, Bihar, Rajasthan, Odessa,
Meghalaya and Madhya Pradesh.
Output per annum
The total industry size is estimated to be
approximately US $ 85 million.
An average container has a price of US$ 18000
to US$ 24000, depending on the materials used
Market capitalization
and the complexity of the designs, thus the total
industry size is estimated to be approximately
US $ 85 million.
India is one among the leading countries in mining and export of granite and is rich in
granite reserves. Geologically, the southern and eastern belts of the Nation are abundant in
granite deposits. Different shades of granites are available in abundance in Tamil Nadu, Andhra
Pradesh, Karnataka, Maharashtra, Assam, Bihar, Rajasthan, Odessa, Meghalaya and Madhya
Pradesh. Indian Granite Stone has become the most sought-after and extensively used stone
material in building construction and massive structural works throughout the world, and it is
well known in the International market, not only for its elegance and aesthetic quality, but also
for its durability
The Granite Industry has received a wider publicity and corporate importance in the
last few years. The industry is emerging now as a thrust-export-area with several corporate
houses, supported by expert professionals trained in all aspects, entering the sector with
sophisticated world-class machinery and making it an organized one.
Many overseas buyers, including the Japanese, are the regular importers of the Jet
Black Material, which is considered to be the world's best variety and is found in abundance
in Tamil Nadu, Andhra Pradesh and Karnataka. But they have, of late, lost confidence in the
supply of materials owing to its interrupted schedule. This was because of inconsistent
policies of the Governments towards the industry, together with political interference in
mining lease and other procedures.
India is one of the leading nations I the production and export of granite and other
stones granite is very hard crystalline, igneous or metamorphic rock primary composed of
feldspar, quartz and lesser amount of dark minerals. India has vast resources of granite with
about 110 varieties of different colours and textures such as black, grey, pink, multi coloured
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etc. these varieties are used to produce monuments building slabs, tiles, surface plates etc.
However varieties are mainly found in south India
Operations that are involved in the processing of granite are:
?
Dressing
?
Cutting/Sawing
?
Surface Grinding and Polishing
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Edge-Cutting-Trimming
Granites are now mined in most of the Indian states for use as construction material
and road metal but production of dressed granite blocks and slabs from Andhra Pradesh,
Karnataka, Rajasthan and Tamil Nadu are highly priced.
In India there are 43 granite processing units of which 12 are in Andhra Pradesh,13 in
Karnataka, 3 in Rajasthan, 14 in Tamil Nadu and 1 in Odessa. During the last five years
exports have grown steadily by about 10% a year but this growth rate may increase even
more in the near future. New companies may not be entering the industry but many existing
companies are steadily increasing their production capacity to meet demand.
New technology investments are being made with the aim of increasing sales and
reducing costs. In the last few years Controlling System with Computers (CSC) machines
have been employed in many factories for making complicated designs. Usually the diamond
tools and other consumables are imported, to the extent of 80% of total demand, and
amounting to between 5 and 6 million US dollars per year.
Size of the industry
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There are 100 manufacturers in India for Granites and there are also a few trading
companies. In the last 5 years the capacity of these companies has increased by about 10%
annually, suggesting a certain stability and sustainability.
Big companies are considered to be those that have the capacity of manufacturing
seven or more containers per month- and there are about 20 such companies. On an average
about 75 workers are employed in a company. Total the direct employment in the Indian
Granite industry is about 10000 people. Indirect employment comes to another 10000 people.
About 80% of the manufacturers are located in the state of Tamil Nadu while the rest are
located in the neighbouring states of Karnataka and Andhra Pradesh. The entire gravestone
industry is located in the south of the country which is where most of the granite quarries are
to be found.
Total contribution to the economy/ sales
Total Granite production in the Indian industry is estimated to be about 350 to 400
containers a month. (A curious unit - when referring to blocks the normal term used is cubic
metres, in slabs, the measurement unit is square metres or square feet, while in the
gravestones the reference point tends to be containers). As mentioned before, the entire
production is exported.
Presently about 180 to 200 containers are exported to Europe, approximately 50
containers a month are exported to United States, 40 containers to Japan while the rest are
sent to Australia, New Zealand, South Africa and other countries. The months of November,
December and January are considered to be the low season when monthly production drops
to about half. An average container has a price of US$ 18000 to US$ 24000, depending on
the materials used and the complexity of the designs, thus the total industry size is estimated
to be approximately US $ 85 million.
Domestic and Export Share
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Granite importing countries such as the US, China, Italy have reduced their
requirements. India's granite and natural stone exports could be down by 15-20 per cent per
year according to CAPEXIL (formerly Chemicals & Allied Products Export Promotion
Council).
Latest developments
?
India has one of the largest reserves of granite in the world and exported Rs 2,600
crore (Rs 26 billion) worth of the stone in the past years. Granite exports this fiscal
are expected to touch Rs 2,800 crore (Rs 28 billion) and nearly one-fourth of these
exports is accounted for by monument stones.
?
About 85-90 % of the total granite production in the country is for exports. So after
the recession period is over the industry will again regain its demand .This is the best
time for an entrepreneur to venture into this sector.
?
Last fiscal, the total exports of granite and marble from India had crossed the Rs
4,000 crores marks with the US accounting for the bulk of the consumption (40%).
?
The All India Granite and Stones Association (AIGSA), which estimated a 10 %
increase in overseas sales for 2007-08, found the export market no more lucrative.
?
The granite industry in Rajasthan has been growing at 50% annually. But this growth
has serious social and environmental costs. As the water sources are being depleted,
forcing farmers to become laborers in the granite industry.
?
Rajasthan Granite mining is an approximately Rs 800 crore industry today; it forms
95% of India's dimension stone exports.
Competitors:
?
?
?
?
?
?
Suncity stones creation
Harsh stones
Kushalbagh marbles Pvt Ltd
Excel marmostonePvt Ltd
Prestige rock Pvt Ltd
Sri biligiri granites
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WORK FLOW MODEL
Granite Quarrying Operations
Extraction (more commonly referred to as quarrying) consists of removing blocks or
pieces of stone from an identified and unearthed geologic deposit. Differences in the
particular quarrying techniques used often stems from variations in the physical properties of
the deposit itself such as density, fracturing/bedding planes, and depth financial
considerations, and the site owner’s preference.
Nevertheless, the process is relatively simple locate or create (minimal) breaks in the
stone, remove the stone using heavy machinery, secure the stone on a vehicle for transport,
and move the material to storage. A flow diagram of typical quarrying operations is shown
in Figure.
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As shown in Figure, the first step in quarrying is to gain access to the granite deposit.
This is achieved by removing the layer of earth, vegetation, and rock unsuitable for product
collectively referred to as overburden with heavy equipment and transferring to onsite storage
for potential use in later reclamation of the site.
After the face of the granite is exposed, the stone is removed from the quarry in
benches, usually 8 to 12 feet square extending 20 feet or more using a variety of techniques
suitable to the geology and characteristics of the granite deposit.
Quarrying operations typically include the drilling of holes along the perimeter of the
bench, followed by either cutting the stone out of the deposit using saws equipped with
diamond wire, or by splitting the stone using hydraulic splitters or small explosive charges.
Once the bench is cut or split loose from the deposit, heavy equipment is used to lift
the granite bench and transfer it to an inspection area for grading, temporary storage,
occasional preprocessing into slabs, and eventual shipment from the site.
Granite of insufficient quality or size for current demand is stored on-site for future
use, crushed for use in paving and construction applications, or stored for future site
reclamation activities.
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ORDER PROCESSING FOR CUSTOMIZING SECTION
Granite Processing Operations
In Sri Malai granites and exports Processing operations include much more variation
than extraction. Nevertheless, the general procedures begin with initial cutting, followed by
application of a finish, and conclude with a second cutting or shaping step. Due to the array
of stone products, the second and/or third steps may be eliminated, specifically when the
product will have a “natural” appearance. As shown in below diagram.
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PRODUCTION PROCESS
In Sri Malai granites and exports the traditional stone used to create monuments and
slabs. It is one of the hardest and most durable of substances. It can be exposed to weather for
centuries without crumbling. It is this extreme hardness, plus the fineness of its crystals, that
makes granite the perfect choice for monuments. Different types of granites are quarried from
specific regions of the world. Some from as close as Vermont and some as far away as South
Africa and China. Each type of granite carries a color, texture and the particular crystal
pattern associated with that region. At Staten Island Monuments we help you choose a granite
of beauty with a color, texture and finish that is perfect for the very special memory of your
loved one.
Granite is quarried by either jet-piercing, blasting or sawing it from the earth. Once in
granite block form, they are transported to production plants by heavy machinery to begin the
manufacturing process. The blocks of granite are cut into pieces or “slabs” of various
thicknesses by diamond saws. Many of these slabs undergo polishing. The polishing process
is somewhat similar to the sanding of wood, in that abrasives are used to smooth the surface
of the stone. Coarser abrasive grits are first used to rough grind the granite. Progressively
finer grits are used during the process to first polish and then to buff the surface to a glasslike sheen.
Once both sides of the slabs are polished the stone is transported to an area where the
monument is cut to dimension and refinished according to the customers’ requirements. A
rubber stencil is then cut that includes the design the family has chosen along with lettering
sizes and styles. The memorial and stencil are now moved over conveyors into one of the
sand-carving booths. The operator directs a stream of abrasive that is blown under pressure of
about one hundred pounds per square inch at the monument. When the abrasive strikes the
rubber it merely bounces off, but where the rubber has been cut away, the abrasive carves the
pattern into the granite. This one-step method is used to produce letters and other twodimensional designs. After the completion of the carving the memorial is then moved to an
area where the stone is completely washed and dried. Once dried, it is time for the Quality
Control Inspector to carefully compare the original order and design to make certain that the
memorial is complete and error free.
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Chapter 2
DEPARTMENT ANALYSIS
FINANCE DEPARTMENT
The industry focuses on traditional responsibilities such as financial accounting,
payroll, estimating and handling cash in- and outflow thus managing liquidity. The second
part analyses the newer roles like management accounting, strategy involvement,
management information systems, financial analysis and the broader range of responsibilities
in the finance department. Finally, a review of the roles and responsibilities will be
undertaken to evaluate the importance of the finance department.
Traditional roles of the finance department
The traditional roles and responsibilities of a finance department are important for the
smooth operation of the business. However, most of the functions do not have a considerable
strategic importance.
The most common function of the finance department comprises the documentation
and the controlling of incoming and outgoing cash flows as well as the actual handling of the
cash flows.
The introduction of mass computer systems has made the task less labour intensive and far
quicker, even Real-time.
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SRI MALAI GRANITES AND EXPORTS
Cash flows can be displayed on an up-to-date basis every day, performance can be
analyzed and evaluated straight away. This gives the financial department and the senior
management useful tools to see how the company is performing at any given time.
The finance department is also responsible for the payment of bills, wages and
salaries. This as well has been computerized. Wages and bills are paid through electronic
systems. Both transactions are outgoing cash flows. On the other hand, payments for goods or
services sold will be accounted for in this department.
MARKET STUDY
Past Supply and Present Demand
If we go back to the history stone was a principal building material because of its
availability, beauty and long lasting features which are the guiding requirement of
architecture in any age. Granite is composed of minerals, yielding excessive resistance to
abrasion, making it the material of choice.
Granite buildings are preferred for their beauty, durability, permanence and
prestige.Granite is used in floor tiles, landscape products, tumble stones, building interiors,
churchfeatures, paving materials, counter top slabs, cemetery features, and cobblestones and
inother industrial applications.
Granite demand is directly related with the construction industry in general and the
building sector in particular. According to the housing census conducted by Central statistics
agency, the majority of housing units in Ethiopia are made from wood and mud due to the
low level of income persisting in this country, granite is rather a product which has to be
targeted for industrial institutions and higher income group housings. Recently, however,
more and more buildings are utilizing granite. Therefore, only urban housing units are
assumed to utilize granite.
Assuming the number of houses constructed each year grows in level with the growth
of the urban population, which is 4% per annum.
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According to building contractors, construction of a common house on average
consumes5.25m2 of granite for different purposes. Accordingly the present domestic demand
for the product is estimated to be 208,363m2 per annum. In addition to the domestic market
there is a possibility of selling to the export market mainly to neighbouring countries such as
Sudan.
Keys to Success in International Markets
Success in an international market place is measured in profits and market share. Certain
activities are claimed to improve success in new markets.
?
A company should get beyond cultural aspects. There are many cultural differences but
the company can learn from them and eventually understand those differences.
?
An early investigation of the markets is the key to success. The best information will
come from your own industry both from domestic and foreign markets.
?
The slogan “Where there is competition there is a market” encourages to export to
countries where already is competition. Companies should not be afraid of competition
they should overcome obstacles and think out of the box to be able to beat competitors.
?
The budget should be planned carefully to cover short time loses but achieve long-term
profits.
?
In international business more patience is required compared to domestic trade. Building
relations and trust takes time and effort.
?
Communication between partners is crucial to ensure both parties understand each other
and sales transactions will satisfy both. The companies should offer customers quality
service of communicating often, clearly and simply. It is important to remember is that
expert counselling saves money.
?
The company should ask help from different organizations such as banks, freight
forwards and department of commerce to be able to minimize costly mistakes.
?
Selection of distributors is also critical for success. They will affect strongly on
customers’ satisfaction and overall profitability.
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?
On a strategic level the company should try to be proactive rather than reactive. The
overall development of the industry should be followed continuously to be among the
first ones to enter profitable markets and make good profits.
TECHNOLOGY AND ENGINEERING
TECHNOLOGY
1. Production Process
The successful and economical working of Sri Malai granite and export depends upon
an intelligent application of knowledge of the structure of the rock and its natural divisions in
the mass, as well as upon improved methods, tools, and machinery for quarrying. The
topographical location of the quarry and its relation to facilities for transportation are
important factors that affect the productiveness and greatly modify the actual cost of
operations in a given place.
The manufacturing process of granite blocks and slabs involves the following
operations: quarry opening, blasting, cutting, polishing and ornamenting.Quarrying for
dimension stone requires a specialized method of extraction. Normal Quarrying methods use
large quantities of explosives to move huge volumes for breaking down into aggregate. This
creates cracking throughout the stone, which renders it unsuitable for our purpose. Many a
dimension stone quarry has been rendered useless by the over use of explosives. Wire sawing
is used for primary block extraction. The system consists of a long stranded wire or diamond
tipped wire fed through a series of pulleys and assisted by abrasives. Stranded wire has been
used for many years in marble and sandstone, whilst improvements in diamond technology,
has seen the recent introduction of wire sawing in granite quarries.
The yield from wire sawing is much higher and gives a semi-finished surface which allows a
close examination of the material before further working.
Cutting is performed by a gang-saw for producing granite slabs. Gang sawing uses a
Reciprocating frame with up to 120 steel blades working their way through the block. It can
take up to one week to saw each block. Granite cutting has no adverse impacts on the
environment.
ENGINEERING
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1. Machinery
and Equipment
The list of machinery and equipment required for the manufacture of granite slabs in
sri malai granites and exports are given in the below table.
LIST OF MACHINERY AND EQUIPMENT IN SRI MALAI GRANITES AND EXPORTS
1.
Slide cutting machine 2
2
2.
Gang block cutting machine
2
3.
Trolley type cutting machine
1
4.
Polishing machine, pneumatic
5
5.
Polishing machine, hand operated
4
6
Quarry equipment Set
3
7
Tools Set
5
MANPOWER AND TRAINING REQUIREMENTS OF SRI MALAI
GRANITES AND EXPORTS
Below shows the list of manpower required and the estimated annual labour costs.
Total manpower requirement, including skilled and unskilled labour, is 50 persons.
Correspondingly total annual labour cost, including fringe benefits, is estimated 355,500.
Sl.no.
Description
Req.no.
Monthly
Annual salary
salary
1.
General Manager
1
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SRI MALAI GRANITES AND EXPORTS
2.
Production
and 1
12,000
1,44,000
Technical Manager
3.
Finance manager
1
12,000
1,44,000
4.
Accountant
2
8,000
96,000
5.
Sales person
4
9,000
10,8000
6.
Purchaser
3
7,000
84,000
7.
Clerk
2
5,500
66,000
8.
Secretary
1
6,000
72,000
9.
Production foremen
5
6,500
78,000
10.
Operator
8
6,500
78,000
11.
Electrician
3
6,000
72,000
12.
Un skilled labours
15
6,500
78,,000
13.
Drivers
4
7,000
1,06,000
84,000
Total
50
Worker’s
Benefit
=
12,72,000
21,200
2,54,400
1,27,200
15,26,400
20% of Basic Salary
Grand total
TRAINING REQUIREMENT
An on-site training programme will be arranged in Sri Malaigranites and exports for
key production, maintenance and quality\ control personnel in consultation with the
machinery and technology supplier. The training can be best carried out during
commissioning and performance testing of the factory.
Chapter 3
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PROBLEMS IN GRANITE INDUSTRY
MODERNIZATION
The main obstacle for the slow rate of modernizing the quarry is due to very high rate
of import duty on capital equipment like diamond wire saw machines, drilling equipment and
on consumables like diamond wire, drilling rods etc.
To encourage the industry and to modernize the quarry operations, the Government
should consider granting mining industry 100 per cent export oriented unit status or full duty
exemption for imports against export of blocks.
Such help from the Government will not only make the quarry operations profitable
but also can encourage entry of corporate companies into the granite sector.
LABOUR PROBLEMS
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Labour is the crucial input for any enterprise and more crucial in the case of granite
industry. Handling laborers is one of the most difficult tasks performed by the entrepreneurs
because of the involvement of human element.
The low productivity per worker and less man-hour utilization is another problem for
the granite industry. The lack of exposure to modern quarrying and training for the workers is
a major reason for the low productivity of the workers.
The granite industrialists are sometimes forced to recruit unskilled workers and train
them for a few months so effectively to employ them. It is right time that government and the
industry should work in tandem to establish a training institute to educate and train the work
force, which will help the mining industry to a great extent.
Better utility of labour force with motivation for high productivity is essential for the
growth and competitiveness of the granite industry.
RAW MATERIALS
The major problem of the granite industry is the non-availability of raw material at
standard prices. The scarcity of raw materials was found to be the major problem more so in
the initial years, followed by the high cost of raw materials, non-availability of raw materials
in the required quantities, poor quality of raw materials and lack of transport facilities to
transport raw materials to the granite industries.
FINANCIAL PROBLEMS
The availability of timely and adequate finance at reasonable rate is an essential pre requisite for the development of granite industries. Granite industries generally do not have
sufficient funds of their own to meet the required fixed capital and working capital
investment.
The paucity of funds often makes it difficult for them to install modern machinery and
tools and to maintain them properly. The high rate of interest charged by the financial
institutions should be reduced to make the Indian granite products more viable in the world
market. Incentives like liberal working capital norms, longer repayment schedules for loans
etc. should be implemented immediately.
TECHNICAL PROBLEMS
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One of the serious problems confronting the granite industry has been the nonadoption of sophisticated technology and modern equipment/machinery and this gives rise to
several technical problems in production process.
The ultimate quality and the productivity depend largely on the technical setup of the
firms. Some of the technical problems faced by the granite industrial owners are
(1) Unsuitability of the machinery to suit the quality and quantity of the granite product,
(2) Inter - machinery balancing which brings proper interaction among the different stages of
production,
(3) The Testing facilities for raw material,
(4) The Excess consumption to identify the granite deposits,
(5) The Excess consumption of power fuel,
(6) The Excess consumption of raw materials.
The consistent and upgrading the technology by installing new machines will improve
the productivity and reduce production cost in the long run.
TRANSPORT PROBLEMS
Transporting the granite slabs is an important activity. The manufactured granite stone
has to be transported to various marketing centers.
Though some of the raw material and granite blocks are available in the local areas,
other inputs have to be transported from various other places which require proper
transportation facilities.
The important problems of transportation include increase in transport costs, and
inconvenience in engaging different modes of transport before the granite products are finally
sent to the market.
TAX PROBLEMS
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Payment of taxes on the manufactured granite productivity has become a major
burden on the part of granite industrial entrepreneurs.
The granite industrialists feel heavy burden to pay the sales tax, VAT, excise tax and
other (municipal / local) taxes.
MARKETING PROBLEMS
Marketing strategy needs to be structured to suit the changing, growing and varying
complexes of national and international markets. It has to be considered and adopted to meet
the needs of dynamic markets with much greater care in the case of mineral based industries
particularly in granite industries.
Marketing problems of granite industries mostly arise due to lack of standardization,
inadequacy of products and methods of design the slabs, use of low quality of stones, lack of
precision and inconsistency in the finishing of the granite products etc.
The market oriented problems from inadequate resources at the disposal of granite
industries include identification of the market outlets and market characteristics of their
products and also for tapping profitably the existing new market outlets and contexts.
The poor marketing performance may lead to unrest in the field of granite industries.
Marketing which is a major area of operation in granite industrial units often is neglected in
many cases.
Some of the marketing problems faced by granite industry owners include inefficient
sales force, high cost of marketing, inadequate sales promotion, customer resistance, and high
cost of transport for arrival market centers.
Government Policy
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The present trend of liberalization, privatization, should help the industry. For
industrialgrowth Many state Governments should formulate their policies in considering
grant of adequate areas on lease for sufficiently longer periods so as to build confidence and
courage in the entrepreneurs in taking the investment decisions.
In order to encourage the new entrepreneurs, the central and the state Governments
are offering a number of financial incentives and concessions for those who started the small
scale industries and processing units of granite.
In order to stimulate industrialization throughout the state, the Government is offering
facilities and incentives to prospective entrepreneurs wishing to set up industries in
Karnataka. The incentive scheme was also introduced in the state
In 1961 and has been modified several times to make it more attractive and keeping in
view the needs to achieve the goal.
Fourteen districts of the state are covered under central subsidy scheme where
investment subsidy at 15% to 10% is given. Besides, fiscal concessions like income tax
rebate, higher depreciation allowance, lower rate of interest, longer periods of moratorium
and repayment, power rebate of 5% for the first three years is given etc.
In seven other districts, not covered under the Central Subsidy Scheme, the state
Government has identified 20 growth centers for the purpose of sanction of incentives.
Investment subsidy, deferment of sales tax, power rebate is granted to industries coming up in
the growth Centre areas. Now Industries will be eligible for higher percentage of incentive in
addition to subsidy on land up to 50 acres.
1. Concession of 10% in the cost of plot/land.
2. Preferential allotment of plot/land.
3. Elimination of interest and administrative overheads, while arriving at the cost of the
shedallotted to ST and SC entrepreneurs in tribal areas.
Fiscal incentives and concessions given by other state Governments are also more or less
similar to those offered by Karnataka and Andhra Pradesh.
Some of the important measures adopted by the Central Government for encouraging
the growth of granite industry are:
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1. Allowing the export of granite stones through the export policy.
2. Exemption from custom duty on import of capital goods, equipment, tools, consumables
and spruces.
3. Development of stone industry under the liberalized licensed procedure of the 100%
Export Oriented Units Scheme.
4. Caste subsidies are provided for setting up medium scale industries in backward areas.
5. Providing export finance at concessional interest to achieve better export. Financial
assistance for term loan is also provided.
6. Liberalized foreign collaboration and foreign loan borrowable.
7. Excise duties on indigenous equipment have been waived for the purchases made by the
100% Export Oriented Units.
The areas where the Corporation can play significant role are listed below:
1. Provision of basic infrastructure for the granite processing industry.
2. Marketing assistance: To avoid competition in the face of growing number of units in the
granite-processing field.
3. Manpower development: To evolve short-term courses for training and development of
personnel involved at various levels in the industry, courses of this nature may be evolved
with active participation.
4. Raw material supply: Regular supply of quality raw material at reasonable prices.
5. Consultancy and guidance: To entrepreneurs in all aspects in regard to making granite
processing a profitable venture.
6. Study and information: In-depth and integrated studies of the granite processing
industries to help in evolving and implementing the above tasks. Study, research exercises
should involve active participation of entrepreneurs and theirbodies.
Information dissemination is necessary for promoting awareness in the industry and public to
develop and explore new avenues in marketing.
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Though the Government has brought the granite industry under the extreme focus
area, many closely associated with it appear to believe that it has got bogged down in
uncertainties.
This is despite the fact the liberalized environment has bought a rationalized regime
for most industry sectors.
The grouse emanates from the inadequate initiative shown by the Centre wherever
individual states have a say in matters. Yet, an optimistic evaluation seems to be that the
industry is set for a facelift with the setting up of Granite Development Council.
The aim of this broad based organization, with industry representatives and
Government officials as members, is to push exports of granite and granite products.
Various interests have taken extreme views regarding the possibility of export growth.
While one section says that exports might cross-even Rs. 2000 corer by the turn of the
century, the pessimistic view has it that it might plummet to even 30 or 40 percent of the
current levels.
This is to say that the future of the industry will depend, to a great extent, on the
policy decisions of the Central Government, and much less on market influences.
The Granite Development Council is in the process of framing a long-term approach
and evolving a national policy. The royalty issue will be discussed threadbare and study the
practice followed by various states so as to evolve a common approach.
This is because royalty has not been uniform in the country and could lead to more
problems as more and more granite deposits of commercial importance are being reported
from various states.
As a result, the recoverable reserves have increased to 4.35 million cubic meters. The
actual reserves must be much more since the Geological Survey of India has calculated it at
200 billion cubic meters.
Over the years the most contentious issue has been of the putts lands. To extract
granite reserves from their own land, private owners were being forced to pay dead rents,
besides royalty.
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Many small miners fall into this category, holding anything up to three acres and the
widespread feeling is that these owners can ill-afford to do it.
Eventually, when it comes to mining proper, the small owners usually found
themselves strapped for cash and comprised by using inferior technology, which leads to high
wastes and lower productivity.
For long the industry had been pleading for speedy disposal of quarry licenses
applications. There have been instances of prospective miners having had to wait for over
five years.
Despite giving Granite Industry the status of a thrust area, not much is being done.
Technology remains poor in most mining units leading to wastes. The value addition remains
low.
As such 51 percent of India’s exports are of crude and roughly trimmed stone, rather
than cut and polished variety, which commands higher price.
Thus India loses its advantage of far cheaper production costs. This is where a country
with poor reserves in granite commands a big share in the global market. Italy, a pioneer in
stone culture owes its status to top class processing and polishing technology. Yet, there are
no incentives or aid, to update technology in our country.
The nascent industry, with its unique advantages should have made good progress in
the five years since it cut its teeth, as it were. But it has been with problems that are largely of
its own making, especially in the scientific exploitation of this valuable foreign exchange
earner.
If the insensible application of business decisions threatens to drag its prospects, the
cut throat competition-without emphasis on quality and market research-may be the undoing
of the industry. Analysis warns that if certain key issues are neglected at this stage, global
giants may pose a serious threat to the entrepreneurs.
Being a net foreign exchange earner, granite exports should be able to expand market
share in terms of volume and price realization because of the advantage of devaluation which
would further increase the competitive price from India. With an average increase of ten
percent in the market every year, a flexible market approach, backed by proper research,
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should bring rich dividends. Instead of too many players chasing the same small market, each
exporter should focus on a select product and nurture a niche market.
Lack of professional approach to marketing and the situation of too many players
jumping into the market without a proper understanding of the industry are serious barriers to
India emerging as a leader in the international market. This is particularly true of Andhra
Pradesh, which accounts for 50 percent of the country’s granite exports.
The acquisition and adaptation of technology is another critical area where the
industry has shown little wisdom. This has caused severe efficiency losses while quarrying
and processing resulting in considerably wastage of the end product. The use of the standard
machinery available in the international market has led to adaptation and assimilation
problems for the industry and added unnecessary capital costs. The high cost of machinery
has only added to the cost of production, which is not commensurate with productivity. All
this warrants a serious look by the industry, which should bring in more effective measures.
The industry has been able to achieve a production efficiency of not more than 50-60
percent from the gang saws (the most commonly used machine), whereas, in Italy and Spain
it is 80 percent.
Even the quality of the labor needs greater attention, as against India per capita
productivity of one cubic meter in Italy and Spain it is about 30 cubic meters. A right mix of
machines and an improvement in labour efficiency would go a long way in increasing the
overall production.
Another serious obstacle to India emerging as a major player is quality. Inadequate
attention to the dressing of blocks before shipping has marked the country’s reputation
abroad. Interestingly not one granite company has gone in for ISO 9000 Certification, an
effective marketing tool for a sustained presence in the international market.
As for other production processes, which affect the efficient exploitation of the raw
material, line balancing is an important area that has been given the short shift, adding to the
already heavy burden on the capital cost of units.
Greater capacity than that required in parts of the three items of machinery gang saw,
polishing equipment and edge-cutting gadgets has led to unnecessary capital costs, affecting
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productivity and, hence, pricing. With high interest costs and non- commensurate price
realization, many companies are finding it difficult to service their loans.
The liquidity crunch has only aggravated their problem of working capital. If
mortality has not set in, it is basically because of the huge demand. The granite industry
received the prompt attention of the Government in the removal of certain discrepancies. It
did away with the 10 percent export duty.
Granite has been added to the list of „extreme focus? items for exports, which should
be a great boost to the industry. Besides the formation of the development council for the
granite industry should act as a catalyst to exploit the full potential of this foreign exchange
earner. Another development was the establishment of norms by a national committee based
on performance parameters of the industry.
This should enable a better appraisal of the industry by funding agencies; it should
also help the industry acquire a competitive edge and move confidently towards a preeminent position in the International market.
Although the Government has given the industry priority status, some concessions,
such as the relaxation of import duty on certain processing equipment, and incentives for the
setting up of equipment manufacturing units within the country would go a long way in
proving greater encouragement.
The Union Government also decided to provide a major boost to the Rs. 1,500 crore
granite exports from the country through various policy initiatives. The policy changes on the
anvil for the granite sector include bringing down the threshold limit for providing benefits
under the export promotion capital goods (EPCG) scheme for import of machinery for granite
processing from the present level of Rs.20 crore to Rs.5 crore, provide incentive under
Section 80 HHC of the Income Tax Act, allowing import of mining equipment for granite
under the EPCG scheme and link export of rough granite to export of processed granite in a
ratio of 1:5.
The granite processing units at present have to import machinery worth Rs.20 crore
for obtaining Export Promotional Capital Goods benefits. It has now been proposed to bring
this down to Rs.5 crore, which will provide relief to several smaller granite processing units.
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Import of granite mining equipment will also be given Export Promotional Capital Goods
benefits, which they do not enjoy at present. The proposal to link export of rough granite to
export of processed granite in a ratio of 1:5 has been taken to promote value-added exports of
granite.
The Union Commerce Ministry estimates that the Indian granite industry has potential
to increase granite exports if pragmatic policy measures are adopted both by the Centre and
the State Governments.
While renewing the license for granite mining, it was also proposed to ease the
procedures for granting leases, royalty and dead rent between states to avoid any internal
competition.
The mining industry would take necessary initiatives to ensure that dead rent was
changed on part with industrial mineral under the Mineral Concession Rules of the Central
Government.
The ministry was also planning to give leases for a period of 20 to 30 years, and
automatic approval for the renewals. Besides, it was also considering reducing the royalty for
the waste material generated during quarrying which was suitable for construction of roads
and railway billets.
The state Governments has to grant additional areas for quarry development at
nominal rent. The ministry is also planning to exempt the levy of dead rent for two years in
the interest of rapid development of the industry, access roads, dig-trail pits and demand
generation would take considerable time.
Granite is not a mineral but is deemed as a mineral for the purpose of regulating the
licenses. It is purely a decorative product besides a few engineering applications like surface
plates and rollers etc.
Granite is not a new thing for India. All the granite varieties that are exportable today
were used and are still being used as ordinary rustic stones and as road jelly’s. But, quite
suddenly granite is dramatized as if something very important and as a newly found product.
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Granite industry and its growth purely depend upon a long-term strategy and
organized planning. Since the rustic stone has to be converted into a global stone to compete
in the international market, the stone industry needs to put lot of efforts and energy to satisfy
the customers discriminating needs.
The dimensional stone quarrying for export marketing needs substantial investment.
For running a quarry, one has to plan an investment of minimum Rs.1 crore if he desires to do
a scientific quarrying. But, to run a quarry on the international standard, one has to plan an
investment of about Rs. 5 crores. One quarry needs such a big investment.
The granite industry is labour intensive and highly power consuming. There is no
other mining industry in the world which requires such heavy handling equipment’s where
the product is so hard, rugged and a huge monolithic. These specialties are rarely understood
and noticed by the public and even by a person entering into the stone industry.
The Government could avoid this situation in the granite industry by throwing open
and allowing the entrepreneurs to plan freely like the major minerals. This will help
substantial investment, employment generation, scientific quarrying and good exports. Why
the various officials all over the country insist that all granite entrepreneurs should set up
cutting and polishing factories and export only polished granites. This kind of condition is not
insisted on all other minerals. But, the granite industry is severely dealt with in a cruel
manner with unnecessary conditions and regulations. No other country is insisting these kinds
of conditions for granite. Unfortunately, the ordinary granite still used for road metal is being
battered and the entrepreneurs are all thrown over helter-skelter with all unrealistic policies.
Granite is a fashion oriented aesthetic product. Preference on some granites and
loosing markets for certain granite varieties are all routine features. Therefore, the granite
policy should be totally flexible. Andhra Pradesh state Government which is always a pioneer
in many fields should not lag behind in developing the granite industry in the state.
The Government should facilitate easy self declaring permit systems for transporting
the granites from the quarry to the factory or to the port, as the quarries are located in small
villages and the Geology offices are located in towns and frequent travelling of long distance
and taking permits delays the operations. As against this, even continuous sales tax payers
make only declarations in proper form and remove and transport the goods. Same kind of
trust can be followed regarding granite industries also.
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The granite industry will be a social stabilize in offering a guaranteed job for the
village people in the chronic drought prone regions. This could be a diplomatic and cultural
ambassador for our country’s image as the stone clad building abroad will stand permanently
as a monument with a tag of Indian stone.
The granite industry has received a fresh lease of life with the government
announcing the Granite Conservation and Development Rules. The industry has witnessed a
slowdown in the recent years because of the absence of a uniform mining policy and the fall
in demand for Indian products from the major markets in South-East Asia. However, with the
new policy and the markets showing sign of revival, the industry is likely to gain momentum
in next few years.
The Granite Development and Conservation Rules will help in systematic exploitation
and conservation of reserves in the country. The rules have removed bottlenecks by way of
formulating clear-cut guidelines on issuing prospecting licenses as well as granting renewing
of mining leases. Many quarries which stopped working for want of leases is expected to start
functioning. The new policy is definitely going to attract investments, especially in the
mining sector. It may take at least two to three years before the investments start flowing-in.
The investments may be either direct or through joint ventures.
In a significant move, the Union Government has come out with a uniform framework for the granite industry to facilitate systematic and scientific exploitation of the mineral
throughout the country.
Every holder of a prospecting license for granite will have to submit within 60 days a
scheme of prospecting to the State Government indicating the manner in which he proposes
to carry out the prospecting operation.
The new framework is a sequel to the notification issued by the Department of Mines
in the Ministry of Steel and Mines. Under this policy, granite lease will not be granted or
renewed by the State Government unless there is a mining plan approved by the State
Government or any person authorized in this behalf by that Government for the development
of the granite in the area concerned. No individual will commence the mining operations for
granite in any area without the approval of the State authorized officials.
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Similarly, where mining operations for granite have been undertaken before the
commencement of these rules, the holder of such lease will have to submit a mining plan
within a period of one year from the date of commencement of these rules.
After all these procedures, the prospecting and mining operations will have to be
carried out in such a manner so as to ensure systematic development and conservation of
granite deposits and protection of environment.
The new policy in the mine leasing policy, where basically granite is treated as a
minor mineral which comes under the State list, will upgrade the granite into a major mineral
one of the major problems currently faced by the granite industry was that the Government
did not care to upgrade the technology used in mining.
If permission was given to import state-of-the-art machinery for use in the early
stages of mining, the percentage of recovery could be improved, wastage reduced and blocks
produced in sizes of international standards. This would cut down costs by toning up
productivity levels.
India has its own potential strength despite certain short comings and policy frame
works of certain states. Its market consolidation in certain products like building slabs, tiles,
monuments and dimensional blocks are fully expected and appreciated all over the world.
Today, the awareness for Indian Stone varieties has strongly grown. There is also
awareness of Indian Quality and the capabilities of Indian factories. Logically, Indian exports
have transformed more towards the processed high value products from dimensional blocks.
But, India has not converted the national stone advantage into power like China.But the
Indian resource strength with the integration of modern technology, with right supportive
policies of the Government, the conservation to high value productivity and strong marketing
will determine the economic power in every product in the long run.
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Chapter 4
SWOT Analysis
STRENGTHS
? Large deposits of superior quality Granite are availablenearby sri mal granites
And exports
? Large variety of types and colors.
? Accessibility to major Granite deposits.
? Significant number of mines.
? Availability of improved technology.
? Availability of required infrastructure facilities
Weakness
?
?
?
?
Untimely and inappropriate arrangement of finance
Lake of equality production.
Incapability of meeting consistent supply.
Low production because of Non – scientific quarrying Use of Primitive method of
quarrying
Opportunity
? The factory region/area has become SEZ (special economic zone)
? Large and established market
? Cane become market leader
THREATS
? Lack of high - skilled work force
? Huge cost sophisticated equipment
? Change in Government policy
Chapter 5
LEARNING EXPERIENCE
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? Visiting of Sri Malai granites and exports Pvt. Ltd. has given a clear picture of work
flow of the complex structure of organization
? We were able to
understand
organizationvarious policies ,behavior, culture
,performance and its future strategiesof organization
? Production unit head had provide us a brief information about communicating and
interacting with the employees we were able to understand adjust issues in
organization
.
? Within a short period of time the company had provide us all the necessary
information.
? The interpersonal relation and concussive environment was found in sri malai granites
and exports.
Chapter 6
Bibliography
?
?
?
?
www.msmgranites.com
www.Stonetileindia.comhttp://www.aarst.orgcom/http://www.naturalstonespecialist.com/information/stonemarket.php
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doc_909836841.docx
CHAPTER 1
INTRODUCTION
Business Familiarization Reportis an activity where a job taken by a student in
order to learn Profession or Trade in their Academics. It gives an exposure to the real work
environment and helps to develop Technical, Social and Communication skills.
This report is brief of about “Sri Malai granites and exportspvt.ltd”, syno 88/345
Dasanur road,badanaguppe chamarajanagar 571313, their working environment, organization
culture, policies, a brief study about the Company profile and Product profile. It also contains
a summary about each department, their functions, their policies and operations.
OBJECTIVES OF THE STUDY
The main objective of the study is as follows:
?
To study about the history and functions of different department
?
To understand about SWOT analysis of Sri malai granites and exports
?
To study about different products ,exports and import of company
METHODS OF DATA COLLECTION:
The information is collected through..
1. Primary Source
2. Secondary Source.
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SRI MALAI GRANITES AND EXPORTS
1. PrimarySource: The information was collected through direct interaction with the
employees, department head and proprietor.
2. Secondarysource:The information was collected from company official websites.
Data Analysis and Interpretation:
The collected data was analysed to draw meaningful inference. The project report
focuses on overall Organizational structure of The Sri Malai granites, which is becoming
familiar granite manufacturing factory.
History of Granite industry
India is a major exporter of natural stone, which is the Secord largest foreign
exchange earner for India besides Iron are in minerals category. The Export Oriented Unit
(EOU) scheme which was introduced in 1960 helped the industry to modernize as it opened a
window to usher in latest technologies for stone. Processing India has immense potential for
growth of exports in this sector.
India has been known for decades for its stone industry and it is one of the biggest
exporters of natural stone in the world. There is something about natural stones, particularly
Indian natural stone that turn them very attractive before all the natural stone lovers across
the world. It is the fascination to have them that bring out such a fabulous business
opportunity. India natural stone exporters are doing a fine job by trying to top the market.
India is the major exporter of natural stone and granite which is the 2 nd largest foreign
exchange earner for Indian besides iron are in minerals category. The export of granite in
2012-2013 was around 4730 crores as against Rs 4430 crores in the previous year.
The share of granite monuments in total granite exporter of monuments and
commenced as for back 1947 when hand punched monuments were exported to UK.
The demand for natural stones can have a number of reasons. Apart from the aesthetic
beauty associated with them there are some specific qualities that make them all the more
useful. For example, sandstone and granite are used widely for their comprehensive strength.
Some other qualities of granite like durability give it preference in architectural
ornamentals works. Some way marble is an effective corrosion and germs repellant.
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In the some way limestone, quartzite and mosaic have their own specific qualities
which turn them as the prefer real choice of clients monuments are as the prefer real choice of
clients monuments are predominately made up of Granit and the entire monument industry is
based in southern India. The majority of factories are in Tamilnadu.
The main markets are the USA, Canada, Australia, New Zealand which used to be the
main buyer in the late eighties and early nineties, China took over the market completely.
Incidentally China has emerged as the largest player in stone industry surpassing even Italy
form the position with the threat to the Indian industry by China and few other East European
countries like Poland, Romania, and South Africa.
The many rooms, walls and arches of Fort Knox, in Bucksport, were constructed of
Maine granite in 1832. The reason was not just because the site was close to coastal quarries,
Maine granite was known across the U.S. and Europe for its strength, size and beauty, said
Steve Haynes, Director of the Maine Granite Industry Historical Society on Mount Desert
Island.
“It was a very important industry here because of the large granite plutons,” Haynes said.
Plutonic granite comes from crystallized magma cooled slowly deep below the earth
surface. The further down from the earth’s crust and the slower it is cooled, the stronger the
granite.
In the quarries developed along the coast of Maine, granite was found up to five miles
deep. In Sullivan, the granite plutons are more than 420 million years old, Haynes said.
He explained the scope of Maine’s granite industry in a detailed talk at the Wilson
Museum on July 16, describing each quarry founded on the Maine coastline the kind and
quantities of equipment used for mining, splitting and transporting the granite; the varieties of
granite found in the many buildings the granite was used to construct.
Granite was cut from below the earth’s crust in large sheets by quarrymen who came
to Maine to share their expertise.
“Men from Scotland, Finland, and Swedenall came to America to perform the cutting
of the sheet,” Haynes said. “These men believe they were building the pyramids of America.”
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Post offices, court houses, state houses and cathedrals are some of the buildings that were
constructed from Mine granite in the 1800s.
Granite from the North Jay, Maine, and quarry was “the white granite of New
England,” Haynes said, and used to build General Grant’s tomb, the Hahnemann Monument
in Washington, D.C. and closer to home, a cathedral in Lewiston. Granite mined in Hallowell,
prized for its softness that allowed easier carving, built the Gettysburg Monument.
“There’s no other quarry in the U.S. that would offer 72-foot pieces,” Haynes said.
Coarse, strong granite formed from larger crystals deep in the earth and cooled slowly, “the
stone cutters love this granite because it carves so nicely.”
Off Stonington, the quarry on Crotch Island produced lavender-tinged granite that
polished well. The quarry opened in 1872, with quarrymen loading the granite sheets onto the
decks of schooners for transport. “These men were very brave,” jumping from rock to rock
on deck, Haynes said. Crotch Island granite was used in so many buildings, “I could go on for
days with the contracts out of Stonington,” Haynes said.
Granite from Some Sound on Mount Desert Island, mined for the Standard Granite
Company, was considered the “best monument granite in the U.S.,” Haynes said. The same
granite rock is found in Cadillac Mountain, formed by granite pushed deep beneath the earth
by volcanic force.
The Maine granite industry peaked around 1900, but in 1920, a new market opened,
supplying street “pavers,” blocks of granite exported to New York, New Orleans and
Philadelphia to pave their streets. Each city required a slightly different size paving stone
depending on the size of their horses, mules, oxen and carts.
The quarrymen used skill and specialized tools to split the granite without shattering
it, whether for a one-foot paver or a 50-foot column. In Hallowell, for example, the list of
quarry equipment ranged from 18 derricks and two traveling cranes to 14 pneumatic plug
drills and pneumatic hand drills.
Today the stone dust unearthed by granite quarrying in the 19th century fertilizes
plant life around the quarry sites, but the buildings live on around the world.
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COMPANY PROFILE OF SRI MALAI GRANITES AND
EXPORTS
Introduction
Granite is a product for decorating walls or interior space of buildings. It is now one
of the most essential building materials for the decoration, durability and protection of the
buildings.
GRANITE
Granite is igneous rock of visible crystalline formation and texture. It is composed of
feldspar (usually potash feldspar and oligoclase) and quartz, with a small amount of mica
(biotitic or muscovite) and minor accessory minerals, such as zircon, apatite, magnetite,
limonite, and sphere. Granite is usually whitish or grey with a speckled appearance caused by
the darker crystals. Granite is mainly preferred for its use in the exterior applications
including funeral trade2. Variety of colours in Granite is traded in the world market with
different price tags. High price is fetched for the rare colours including Jet-Black, Pearl Blue
and Deep Green. These colours are found in South Africa, Brazil, Norway, India.
The specific gravity of Granite ranges from 2.63 to 3.30. Granite has greater strength
than sandstone, limestone or Marble and is correspondingly more difficult to quarry. It is an
important building stone, and its maximum usage is in the external flooring and facing
followed by internal flooring.
MARKET POTENTIAL
The international granite trade was valued at $2.5 billion in 2005, with production of
about 19.6 million tons. Italy is the world leader in marble, granite, and stone sector,
exporting over 38% of finished material and importing 18% of the world trade. India’s
production is 1.3 m tons annually, with less than 10% exported (0.03% of world trade in
2002).
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OPPORTUNITY RATIONALE
India is bestowed with enormous mineral resources including Marble and Granite.
Granite is used for both construction purposes and Handicrafts manufacturing, whereas,
Onyx which is a semi- transparent and generally used by handicrafts manufacturing industry.
Availability of high quality Granite reserves in India is great quantities and the demand of its
products in the export markets i.e. European Union countries, Central Asian countries etc.
make this sector highly attractive. Foreign tourists are the main customers of the products
made of marble and onyx and it has reached an all-time record Rs.763 million in 2004.
NATURE OF WORK ON GRANITE OR SILICEOUS STONE
Because of its uniform texture and hardness, Granite is preferred for external use. It is
more durable as compared to Marble and is economical in maintenance. Granite does not
need re-polishing once it is polished and fixed at the desired place, while Marble needs
polishing every year or at least once in two years. The granular formation and compactness of
Granite makes it non-porous and non-absorbent hence more hygienic for the use in
laboratories, kitchen, washrooms and other water exposed areas. Uniformity in texture gives
better look to Granite and is thus convenient in its application at the desired place. Majority
of the cities located closer to the sea, provide greater markets for Granite as it can withstand
the weather effects (moisturizing) better than Marble. Usage of Granite in special work,
mainly involved in the making and fabrication of sculptures, decoration items etc. Because if
compared withMarble grannie is affordable. This is simply because Granite is a harder
material to work on due to its compaction and silica contents. The distribution of granite use
is illustrated in the figure below.
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percent
special ; 7%
funeral trade ; 20%
others ; 5%
strctural works; 10%
external
stairs & similar;
7% flooring; 34%
external facing; 7%
internal flooring; 10%
Quality Control
Quality is of utmost importance in Sri Malai stones and Sri Malai Exports and is
achieved by adopting continuous up-gradation of meticulous processing procedures. We
strive hard to keep up the high quality standards through indomitable spirit of excellence. Our
approach towards quality ensures that our clients receive the finest products and services at
all times.
Our Vision
To become a leader in Stone Manufacturing Industry through constant innovation,
best service and superior customer satisfaction.
Our Mission
Delivery on time
Highest Quality products
Best service and enhanced customer satisfaction.
Benefits Provided By The Industry To The Employees
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1
Medical reimbursement scheme: The purpose of this scheme is to reimburse
expenses incurred by the workers for medical treatment and purchase of medicine,
hospitalization expenses for the alignment.
2
Provident fund: This is a kind of fund which is a forced saving intended to provide a
large funds sum amount.
3
Workmen compensation: It is providing compensation depending upon the injury
caused to the worker and later compensation is calculated and it given to the workers.
4
Bonus: It is provided to the employees once in a year that is during Ugadi festival
period.
Infrastructure
We have around 5-quarries (3 are under our control) which are rich in premium black
granites. Further we made long-term arrangements with quarry owners for premium Black
granites, Black Galaxy etc.
We set up an export oriented unit to manufacture cut and polished granite monuments,
some part for slabs / panels, with a capacity of 35-40 thousand square feet of slabs and
15,000 sq-mtr of monuments. Commercial production commenced in Jan.2010 (slab section)
and Feb 2-13 (Monument section). We are producing Slabs (Random and cut to size), Vanity
Tops. And we are operating quarries in Karnataka specifically Chamarajanagar for Black
granites.
Factory Location
The Industry is located in sy no 88/345, Dasanur road, behind Badanaguppe railway
station Badanaguppe,The industry having the area of 4.5 acres of land on its assets.
Chamarajanagar Dist. Pin no: - 571313. This is 15 km away from Chamarajanagar.
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ORGANISATION STRUCTURE
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SRI MALAI GRANITES AND EXPORTS
PRODUCT PROFILE
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Sri Malai stones and Sri Malai Exports engaged in the manufacture of granite
products such as granite slabs/tiles, monuments, decorative pieces, etc. We also manufacture
high strength &non breaking special space and absolute Black Granite Slabs from quality
natural stone thus ensure superior finish and durability.
PRODUCT DESCRIPTION AND APPLICATION
In Sri Malai stones and Sri Malai Exports the collective description of natural stone,
which has been extracted from the earth in an orderly manner, further worked by cutting and
processing, then used in Various building activities either structurally or for decorative
purposes. It includes panelsand tiles from marble, granite, slate, sandstone basalt and other
related materials.
The term "Granite" is derived from Latin word "Granum" meaning "grain" because of
its Granular nature. Granite occupies a prominent place among dimensional stones on
account of its hardness, durability, capability to take mirror polish and fascinating colours.
The most common applications of granite are in the manufacture of slabs and blocks for the
building construction sector.
Block sizes may vary according to the deposit. The most common block size is 22
tonnes of a size approximately 3.0m x 1.5m x 1.5m. However, blocks as small as 6 tonnes
and often 11 tonnes could be produced, 22 tonnes is generally the largest due to transport
requirements.
Granite Slabs
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SRI MALAI GRANITES AND EXPORTS
Thickness 16mm, 18mm, 20mm, 30mm,40mm, and per the requirement.
Granite Monuments
Sri Malai Stones and Exports has embraced technology throughout the year to become
the state of the art manufacturing facility memorial business can rely on. These investment
have been assets in being able to manufacture very impressive design. The advantage of
technology balanced with 3rd and 4th generation stone craftsmen gives Sri Malai Stones and
Exports the ability to manufacture innovative, practical and top quality stone/granite
products.
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Black Granite Quarries & Rough Blocks
We supply genuine, high quality granite rough blocks and cut to size dimensional
blocks of various sizes and shapes worldwide, such blocks are also known as Industrial
Minerals.
A range of Colors, different textures ranging from medium- to coarse-grained and
several patterns are available. Rough blocks and Cut to size granite blocks from our quarries
and factory maintain the compulsory and individualistic characteristics of strength and
resistance to ageing and appearance. Our granite rough blocks are created by a chain of
procedures and quality management processes which are fully mechanized operations. Rough
blocks are separated from the mass of rock crust it has been lying upon and crystallized for
millions of years.
The extracted Rough blocks are cut using diamond wire saws/wire saws with coated
diamond beads which are lubricated to cool the cut and processes ensure removal of debris,
We have one of the best quarries which are located in chamarajnagar, South India, which has
huge natural reserves of best Black granite, which naturally results in granite blocks of the
highest quality available to customers worldwide.
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Kerbstones
We provide comprehensive array of Kerbstones that includes assorted shapes and
sizes. The Kerbstones offered by us are highly efficient and durable.
Range
Chiselled Kerbstone
Kerbstone Cubic
Specifications
Finish
Both sides natural split surface finish
Edges
All edges to be hand dressed (Rock pitch)
Sizes
Length : 3', 4', 5', 6' (tolerance of ±1")
Width : 9", 12", 16", 18", 24" (tolerance of ±1")
Thickness
6"-7" (more as per required)
Packing Specifications
Packing on flat wooden pallets, easy operation by fork lift
No. of pcs.per pallet : 4-12, depending on size
No. of pallets per container: 20-26, depending on size
Weight: Roughly 35-37 Kg. per ft.2
Quantity: One 20' container will contain 650-700 ft.2 Weighing 25-26 MT gross.
Our Chiselled Kerbstone is widely demanded by the builders and various construction
companies. These Chiselled Kerbstones are popular in the national and international market
for its superior quality.
We have been delivering quality end product in the markets from past 5 years. Now
we would like to extend these services into the Indian markets. It simply knows more about
how to build, that is the definable "Wow" factor into every single new home they construct.
As a value added service we now assist. our clients with every step throughout the property
transaction and beyond.
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INDUSTRIAL PROFILE
Size of the Industry
100 manufacturers in India for Granites and
there are also a few trading companies.
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Geographical
distribution
Tamil Nadu, Andhra Pradesh, Karnataka,
Maharashtra, Assam, Bihar, Rajasthan, Odessa,
Meghalaya and Madhya Pradesh.
Output per annum
The total industry size is estimated to be
approximately US $ 85 million.
An average container has a price of US$ 18000
to US$ 24000, depending on the materials used
Market capitalization
and the complexity of the designs, thus the total
industry size is estimated to be approximately
US $ 85 million.
India is one among the leading countries in mining and export of granite and is rich in
granite reserves. Geologically, the southern and eastern belts of the Nation are abundant in
granite deposits. Different shades of granites are available in abundance in Tamil Nadu, Andhra
Pradesh, Karnataka, Maharashtra, Assam, Bihar, Rajasthan, Odessa, Meghalaya and Madhya
Pradesh. Indian Granite Stone has become the most sought-after and extensively used stone
material in building construction and massive structural works throughout the world, and it is
well known in the International market, not only for its elegance and aesthetic quality, but also
for its durability
The Granite Industry has received a wider publicity and corporate importance in the
last few years. The industry is emerging now as a thrust-export-area with several corporate
houses, supported by expert professionals trained in all aspects, entering the sector with
sophisticated world-class machinery and making it an organized one.
Many overseas buyers, including the Japanese, are the regular importers of the Jet
Black Material, which is considered to be the world's best variety and is found in abundance
in Tamil Nadu, Andhra Pradesh and Karnataka. But they have, of late, lost confidence in the
supply of materials owing to its interrupted schedule. This was because of inconsistent
policies of the Governments towards the industry, together with political interference in
mining lease and other procedures.
India is one of the leading nations I the production and export of granite and other
stones granite is very hard crystalline, igneous or metamorphic rock primary composed of
feldspar, quartz and lesser amount of dark minerals. India has vast resources of granite with
about 110 varieties of different colours and textures such as black, grey, pink, multi coloured
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SRI MALAI GRANITES AND EXPORTS
etc. these varieties are used to produce monuments building slabs, tiles, surface plates etc.
However varieties are mainly found in south India
Operations that are involved in the processing of granite are:
?
Dressing
?
Cutting/Sawing
?
Surface Grinding and Polishing
?
Edge-Cutting-Trimming
Granites are now mined in most of the Indian states for use as construction material
and road metal but production of dressed granite blocks and slabs from Andhra Pradesh,
Karnataka, Rajasthan and Tamil Nadu are highly priced.
In India there are 43 granite processing units of which 12 are in Andhra Pradesh,13 in
Karnataka, 3 in Rajasthan, 14 in Tamil Nadu and 1 in Odessa. During the last five years
exports have grown steadily by about 10% a year but this growth rate may increase even
more in the near future. New companies may not be entering the industry but many existing
companies are steadily increasing their production capacity to meet demand.
New technology investments are being made with the aim of increasing sales and
reducing costs. In the last few years Controlling System with Computers (CSC) machines
have been employed in many factories for making complicated designs. Usually the diamond
tools and other consumables are imported, to the extent of 80% of total demand, and
amounting to between 5 and 6 million US dollars per year.
Size of the industry
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There are 100 manufacturers in India for Granites and there are also a few trading
companies. In the last 5 years the capacity of these companies has increased by about 10%
annually, suggesting a certain stability and sustainability.
Big companies are considered to be those that have the capacity of manufacturing
seven or more containers per month- and there are about 20 such companies. On an average
about 75 workers are employed in a company. Total the direct employment in the Indian
Granite industry is about 10000 people. Indirect employment comes to another 10000 people.
About 80% of the manufacturers are located in the state of Tamil Nadu while the rest are
located in the neighbouring states of Karnataka and Andhra Pradesh. The entire gravestone
industry is located in the south of the country which is where most of the granite quarries are
to be found.
Total contribution to the economy/ sales
Total Granite production in the Indian industry is estimated to be about 350 to 400
containers a month. (A curious unit - when referring to blocks the normal term used is cubic
metres, in slabs, the measurement unit is square metres or square feet, while in the
gravestones the reference point tends to be containers). As mentioned before, the entire
production is exported.
Presently about 180 to 200 containers are exported to Europe, approximately 50
containers a month are exported to United States, 40 containers to Japan while the rest are
sent to Australia, New Zealand, South Africa and other countries. The months of November,
December and January are considered to be the low season when monthly production drops
to about half. An average container has a price of US$ 18000 to US$ 24000, depending on
the materials used and the complexity of the designs, thus the total industry size is estimated
to be approximately US $ 85 million.
Domestic and Export Share
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Granite importing countries such as the US, China, Italy have reduced their
requirements. India's granite and natural stone exports could be down by 15-20 per cent per
year according to CAPEXIL (formerly Chemicals & Allied Products Export Promotion
Council).
Latest developments
?
India has one of the largest reserves of granite in the world and exported Rs 2,600
crore (Rs 26 billion) worth of the stone in the past years. Granite exports this fiscal
are expected to touch Rs 2,800 crore (Rs 28 billion) and nearly one-fourth of these
exports is accounted for by monument stones.
?
About 85-90 % of the total granite production in the country is for exports. So after
the recession period is over the industry will again regain its demand .This is the best
time for an entrepreneur to venture into this sector.
?
Last fiscal, the total exports of granite and marble from India had crossed the Rs
4,000 crores marks with the US accounting for the bulk of the consumption (40%).
?
The All India Granite and Stones Association (AIGSA), which estimated a 10 %
increase in overseas sales for 2007-08, found the export market no more lucrative.
?
The granite industry in Rajasthan has been growing at 50% annually. But this growth
has serious social and environmental costs. As the water sources are being depleted,
forcing farmers to become laborers in the granite industry.
?
Rajasthan Granite mining is an approximately Rs 800 crore industry today; it forms
95% of India's dimension stone exports.
Competitors:
?
?
?
?
?
?
Suncity stones creation
Harsh stones
Kushalbagh marbles Pvt Ltd
Excel marmostonePvt Ltd
Prestige rock Pvt Ltd
Sri biligiri granites
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SRI MALAI GRANITES AND EXPORTS
WORK FLOW MODEL
Granite Quarrying Operations
Extraction (more commonly referred to as quarrying) consists of removing blocks or
pieces of stone from an identified and unearthed geologic deposit. Differences in the
particular quarrying techniques used often stems from variations in the physical properties of
the deposit itself such as density, fracturing/bedding planes, and depth financial
considerations, and the site owner’s preference.
Nevertheless, the process is relatively simple locate or create (minimal) breaks in the
stone, remove the stone using heavy machinery, secure the stone on a vehicle for transport,
and move the material to storage. A flow diagram of typical quarrying operations is shown
in Figure.
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As shown in Figure, the first step in quarrying is to gain access to the granite deposit.
This is achieved by removing the layer of earth, vegetation, and rock unsuitable for product
collectively referred to as overburden with heavy equipment and transferring to onsite storage
for potential use in later reclamation of the site.
After the face of the granite is exposed, the stone is removed from the quarry in
benches, usually 8 to 12 feet square extending 20 feet or more using a variety of techniques
suitable to the geology and characteristics of the granite deposit.
Quarrying operations typically include the drilling of holes along the perimeter of the
bench, followed by either cutting the stone out of the deposit using saws equipped with
diamond wire, or by splitting the stone using hydraulic splitters or small explosive charges.
Once the bench is cut or split loose from the deposit, heavy equipment is used to lift
the granite bench and transfer it to an inspection area for grading, temporary storage,
occasional preprocessing into slabs, and eventual shipment from the site.
Granite of insufficient quality or size for current demand is stored on-site for future
use, crushed for use in paving and construction applications, or stored for future site
reclamation activities.
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SRI MALAI GRANITES AND EXPORTS
ORDER PROCESSING FOR CUSTOMIZING SECTION
Granite Processing Operations
In Sri Malai granites and exports Processing operations include much more variation
than extraction. Nevertheless, the general procedures begin with initial cutting, followed by
application of a finish, and conclude with a second cutting or shaping step. Due to the array
of stone products, the second and/or third steps may be eliminated, specifically when the
product will have a “natural” appearance. As shown in below diagram.
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SRI MALAI GRANITES AND EXPORTS
PRODUCTION PROCESS
In Sri Malai granites and exports the traditional stone used to create monuments and
slabs. It is one of the hardest and most durable of substances. It can be exposed to weather for
centuries without crumbling. It is this extreme hardness, plus the fineness of its crystals, that
makes granite the perfect choice for monuments. Different types of granites are quarried from
specific regions of the world. Some from as close as Vermont and some as far away as South
Africa and China. Each type of granite carries a color, texture and the particular crystal
pattern associated with that region. At Staten Island Monuments we help you choose a granite
of beauty with a color, texture and finish that is perfect for the very special memory of your
loved one.
Granite is quarried by either jet-piercing, blasting or sawing it from the earth. Once in
granite block form, they are transported to production plants by heavy machinery to begin the
manufacturing process. The blocks of granite are cut into pieces or “slabs” of various
thicknesses by diamond saws. Many of these slabs undergo polishing. The polishing process
is somewhat similar to the sanding of wood, in that abrasives are used to smooth the surface
of the stone. Coarser abrasive grits are first used to rough grind the granite. Progressively
finer grits are used during the process to first polish and then to buff the surface to a glasslike sheen.
Once both sides of the slabs are polished the stone is transported to an area where the
monument is cut to dimension and refinished according to the customers’ requirements. A
rubber stencil is then cut that includes the design the family has chosen along with lettering
sizes and styles. The memorial and stencil are now moved over conveyors into one of the
sand-carving booths. The operator directs a stream of abrasive that is blown under pressure of
about one hundred pounds per square inch at the monument. When the abrasive strikes the
rubber it merely bounces off, but where the rubber has been cut away, the abrasive carves the
pattern into the granite. This one-step method is used to produce letters and other twodimensional designs. After the completion of the carving the memorial is then moved to an
area where the stone is completely washed and dried. Once dried, it is time for the Quality
Control Inspector to carefully compare the original order and design to make certain that the
memorial is complete and error free.
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SRI MALAI GRANITES AND EXPORTS
Chapter 2
DEPARTMENT ANALYSIS
FINANCE DEPARTMENT
The industry focuses on traditional responsibilities such as financial accounting,
payroll, estimating and handling cash in- and outflow thus managing liquidity. The second
part analyses the newer roles like management accounting, strategy involvement,
management information systems, financial analysis and the broader range of responsibilities
in the finance department. Finally, a review of the roles and responsibilities will be
undertaken to evaluate the importance of the finance department.
Traditional roles of the finance department
The traditional roles and responsibilities of a finance department are important for the
smooth operation of the business. However, most of the functions do not have a considerable
strategic importance.
The most common function of the finance department comprises the documentation
and the controlling of incoming and outgoing cash flows as well as the actual handling of the
cash flows.
The introduction of mass computer systems has made the task less labour intensive and far
quicker, even Real-time.
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Cash flows can be displayed on an up-to-date basis every day, performance can be
analyzed and evaluated straight away. This gives the financial department and the senior
management useful tools to see how the company is performing at any given time.
The finance department is also responsible for the payment of bills, wages and
salaries. This as well has been computerized. Wages and bills are paid through electronic
systems. Both transactions are outgoing cash flows. On the other hand, payments for goods or
services sold will be accounted for in this department.
MARKET STUDY
Past Supply and Present Demand
If we go back to the history stone was a principal building material because of its
availability, beauty and long lasting features which are the guiding requirement of
architecture in any age. Granite is composed of minerals, yielding excessive resistance to
abrasion, making it the material of choice.
Granite buildings are preferred for their beauty, durability, permanence and
prestige.Granite is used in floor tiles, landscape products, tumble stones, building interiors,
churchfeatures, paving materials, counter top slabs, cemetery features, and cobblestones and
inother industrial applications.
Granite demand is directly related with the construction industry in general and the
building sector in particular. According to the housing census conducted by Central statistics
agency, the majority of housing units in Ethiopia are made from wood and mud due to the
low level of income persisting in this country, granite is rather a product which has to be
targeted for industrial institutions and higher income group housings. Recently, however,
more and more buildings are utilizing granite. Therefore, only urban housing units are
assumed to utilize granite.
Assuming the number of houses constructed each year grows in level with the growth
of the urban population, which is 4% per annum.
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According to building contractors, construction of a common house on average
consumes5.25m2 of granite for different purposes. Accordingly the present domestic demand
for the product is estimated to be 208,363m2 per annum. In addition to the domestic market
there is a possibility of selling to the export market mainly to neighbouring countries such as
Sudan.
Keys to Success in International Markets
Success in an international market place is measured in profits and market share. Certain
activities are claimed to improve success in new markets.
?
A company should get beyond cultural aspects. There are many cultural differences but
the company can learn from them and eventually understand those differences.
?
An early investigation of the markets is the key to success. The best information will
come from your own industry both from domestic and foreign markets.
?
The slogan “Where there is competition there is a market” encourages to export to
countries where already is competition. Companies should not be afraid of competition
they should overcome obstacles and think out of the box to be able to beat competitors.
?
The budget should be planned carefully to cover short time loses but achieve long-term
profits.
?
In international business more patience is required compared to domestic trade. Building
relations and trust takes time and effort.
?
Communication between partners is crucial to ensure both parties understand each other
and sales transactions will satisfy both. The companies should offer customers quality
service of communicating often, clearly and simply. It is important to remember is that
expert counselling saves money.
?
The company should ask help from different organizations such as banks, freight
forwards and department of commerce to be able to minimize costly mistakes.
?
Selection of distributors is also critical for success. They will affect strongly on
customers’ satisfaction and overall profitability.
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SRI MALAI GRANITES AND EXPORTS
?
On a strategic level the company should try to be proactive rather than reactive. The
overall development of the industry should be followed continuously to be among the
first ones to enter profitable markets and make good profits.
TECHNOLOGY AND ENGINEERING
TECHNOLOGY
1. Production Process
The successful and economical working of Sri Malai granite and export depends upon
an intelligent application of knowledge of the structure of the rock and its natural divisions in
the mass, as well as upon improved methods, tools, and machinery for quarrying. The
topographical location of the quarry and its relation to facilities for transportation are
important factors that affect the productiveness and greatly modify the actual cost of
operations in a given place.
The manufacturing process of granite blocks and slabs involves the following
operations: quarry opening, blasting, cutting, polishing and ornamenting.Quarrying for
dimension stone requires a specialized method of extraction. Normal Quarrying methods use
large quantities of explosives to move huge volumes for breaking down into aggregate. This
creates cracking throughout the stone, which renders it unsuitable for our purpose. Many a
dimension stone quarry has been rendered useless by the over use of explosives. Wire sawing
is used for primary block extraction. The system consists of a long stranded wire or diamond
tipped wire fed through a series of pulleys and assisted by abrasives. Stranded wire has been
used for many years in marble and sandstone, whilst improvements in diamond technology,
has seen the recent introduction of wire sawing in granite quarries.
The yield from wire sawing is much higher and gives a semi-finished surface which allows a
close examination of the material before further working.
Cutting is performed by a gang-saw for producing granite slabs. Gang sawing uses a
Reciprocating frame with up to 120 steel blades working their way through the block. It can
take up to one week to saw each block. Granite cutting has no adverse impacts on the
environment.
ENGINEERING
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SRI MALAI GRANITES AND EXPORTS
1. Machinery
and Equipment
The list of machinery and equipment required for the manufacture of granite slabs in
sri malai granites and exports are given in the below table.
LIST OF MACHINERY AND EQUIPMENT IN SRI MALAI GRANITES AND EXPORTS
1.
Slide cutting machine 2
2
2.
Gang block cutting machine
2
3.
Trolley type cutting machine
1
4.
Polishing machine, pneumatic
5
5.
Polishing machine, hand operated
4
6
Quarry equipment Set
3
7
Tools Set
5
MANPOWER AND TRAINING REQUIREMENTS OF SRI MALAI
GRANITES AND EXPORTS
Below shows the list of manpower required and the estimated annual labour costs.
Total manpower requirement, including skilled and unskilled labour, is 50 persons.
Correspondingly total annual labour cost, including fringe benefits, is estimated 355,500.
Sl.no.
Description
Req.no.
Monthly
Annual salary
salary
1.
General Manager
1
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1,68,000
SRI MALAI GRANITES AND EXPORTS
2.
Production
and 1
12,000
1,44,000
Technical Manager
3.
Finance manager
1
12,000
1,44,000
4.
Accountant
2
8,000
96,000
5.
Sales person
4
9,000
10,8000
6.
Purchaser
3
7,000
84,000
7.
Clerk
2
5,500
66,000
8.
Secretary
1
6,000
72,000
9.
Production foremen
5
6,500
78,000
10.
Operator
8
6,500
78,000
11.
Electrician
3
6,000
72,000
12.
Un skilled labours
15
6,500
78,,000
13.
Drivers
4
7,000
1,06,000
84,000
Total
50
Worker’s
Benefit
=
12,72,000
21,200
2,54,400
1,27,200
15,26,400
20% of Basic Salary
Grand total
TRAINING REQUIREMENT
An on-site training programme will be arranged in Sri Malaigranites and exports for
key production, maintenance and quality\ control personnel in consultation with the
machinery and technology supplier. The training can be best carried out during
commissioning and performance testing of the factory.
Chapter 3
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PROBLEMS IN GRANITE INDUSTRY
MODERNIZATION
The main obstacle for the slow rate of modernizing the quarry is due to very high rate
of import duty on capital equipment like diamond wire saw machines, drilling equipment and
on consumables like diamond wire, drilling rods etc.
To encourage the industry and to modernize the quarry operations, the Government
should consider granting mining industry 100 per cent export oriented unit status or full duty
exemption for imports against export of blocks.
Such help from the Government will not only make the quarry operations profitable
but also can encourage entry of corporate companies into the granite sector.
LABOUR PROBLEMS
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Labour is the crucial input for any enterprise and more crucial in the case of granite
industry. Handling laborers is one of the most difficult tasks performed by the entrepreneurs
because of the involvement of human element.
The low productivity per worker and less man-hour utilization is another problem for
the granite industry. The lack of exposure to modern quarrying and training for the workers is
a major reason for the low productivity of the workers.
The granite industrialists are sometimes forced to recruit unskilled workers and train
them for a few months so effectively to employ them. It is right time that government and the
industry should work in tandem to establish a training institute to educate and train the work
force, which will help the mining industry to a great extent.
Better utility of labour force with motivation for high productivity is essential for the
growth and competitiveness of the granite industry.
RAW MATERIALS
The major problem of the granite industry is the non-availability of raw material at
standard prices. The scarcity of raw materials was found to be the major problem more so in
the initial years, followed by the high cost of raw materials, non-availability of raw materials
in the required quantities, poor quality of raw materials and lack of transport facilities to
transport raw materials to the granite industries.
FINANCIAL PROBLEMS
The availability of timely and adequate finance at reasonable rate is an essential pre requisite for the development of granite industries. Granite industries generally do not have
sufficient funds of their own to meet the required fixed capital and working capital
investment.
The paucity of funds often makes it difficult for them to install modern machinery and
tools and to maintain them properly. The high rate of interest charged by the financial
institutions should be reduced to make the Indian granite products more viable in the world
market. Incentives like liberal working capital norms, longer repayment schedules for loans
etc. should be implemented immediately.
TECHNICAL PROBLEMS
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One of the serious problems confronting the granite industry has been the nonadoption of sophisticated technology and modern equipment/machinery and this gives rise to
several technical problems in production process.
The ultimate quality and the productivity depend largely on the technical setup of the
firms. Some of the technical problems faced by the granite industrial owners are
(1) Unsuitability of the machinery to suit the quality and quantity of the granite product,
(2) Inter - machinery balancing which brings proper interaction among the different stages of
production,
(3) The Testing facilities for raw material,
(4) The Excess consumption to identify the granite deposits,
(5) The Excess consumption of power fuel,
(6) The Excess consumption of raw materials.
The consistent and upgrading the technology by installing new machines will improve
the productivity and reduce production cost in the long run.
TRANSPORT PROBLEMS
Transporting the granite slabs is an important activity. The manufactured granite stone
has to be transported to various marketing centers.
Though some of the raw material and granite blocks are available in the local areas,
other inputs have to be transported from various other places which require proper
transportation facilities.
The important problems of transportation include increase in transport costs, and
inconvenience in engaging different modes of transport before the granite products are finally
sent to the market.
TAX PROBLEMS
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Payment of taxes on the manufactured granite productivity has become a major
burden on the part of granite industrial entrepreneurs.
The granite industrialists feel heavy burden to pay the sales tax, VAT, excise tax and
other (municipal / local) taxes.
MARKETING PROBLEMS
Marketing strategy needs to be structured to suit the changing, growing and varying
complexes of national and international markets. It has to be considered and adopted to meet
the needs of dynamic markets with much greater care in the case of mineral based industries
particularly in granite industries.
Marketing problems of granite industries mostly arise due to lack of standardization,
inadequacy of products and methods of design the slabs, use of low quality of stones, lack of
precision and inconsistency in the finishing of the granite products etc.
The market oriented problems from inadequate resources at the disposal of granite
industries include identification of the market outlets and market characteristics of their
products and also for tapping profitably the existing new market outlets and contexts.
The poor marketing performance may lead to unrest in the field of granite industries.
Marketing which is a major area of operation in granite industrial units often is neglected in
many cases.
Some of the marketing problems faced by granite industry owners include inefficient
sales force, high cost of marketing, inadequate sales promotion, customer resistance, and high
cost of transport for arrival market centers.
Government Policy
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The present trend of liberalization, privatization, should help the industry. For
industrialgrowth Many state Governments should formulate their policies in considering
grant of adequate areas on lease for sufficiently longer periods so as to build confidence and
courage in the entrepreneurs in taking the investment decisions.
In order to encourage the new entrepreneurs, the central and the state Governments
are offering a number of financial incentives and concessions for those who started the small
scale industries and processing units of granite.
In order to stimulate industrialization throughout the state, the Government is offering
facilities and incentives to prospective entrepreneurs wishing to set up industries in
Karnataka. The incentive scheme was also introduced in the state
In 1961 and has been modified several times to make it more attractive and keeping in
view the needs to achieve the goal.
Fourteen districts of the state are covered under central subsidy scheme where
investment subsidy at 15% to 10% is given. Besides, fiscal concessions like income tax
rebate, higher depreciation allowance, lower rate of interest, longer periods of moratorium
and repayment, power rebate of 5% for the first three years is given etc.
In seven other districts, not covered under the Central Subsidy Scheme, the state
Government has identified 20 growth centers for the purpose of sanction of incentives.
Investment subsidy, deferment of sales tax, power rebate is granted to industries coming up in
the growth Centre areas. Now Industries will be eligible for higher percentage of incentive in
addition to subsidy on land up to 50 acres.
1. Concession of 10% in the cost of plot/land.
2. Preferential allotment of plot/land.
3. Elimination of interest and administrative overheads, while arriving at the cost of the
shedallotted to ST and SC entrepreneurs in tribal areas.
Fiscal incentives and concessions given by other state Governments are also more or less
similar to those offered by Karnataka and Andhra Pradesh.
Some of the important measures adopted by the Central Government for encouraging
the growth of granite industry are:
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1. Allowing the export of granite stones through the export policy.
2. Exemption from custom duty on import of capital goods, equipment, tools, consumables
and spruces.
3. Development of stone industry under the liberalized licensed procedure of the 100%
Export Oriented Units Scheme.
4. Caste subsidies are provided for setting up medium scale industries in backward areas.
5. Providing export finance at concessional interest to achieve better export. Financial
assistance for term loan is also provided.
6. Liberalized foreign collaboration and foreign loan borrowable.
7. Excise duties on indigenous equipment have been waived for the purchases made by the
100% Export Oriented Units.
The areas where the Corporation can play significant role are listed below:
1. Provision of basic infrastructure for the granite processing industry.
2. Marketing assistance: To avoid competition in the face of growing number of units in the
granite-processing field.
3. Manpower development: To evolve short-term courses for training and development of
personnel involved at various levels in the industry, courses of this nature may be evolved
with active participation.
4. Raw material supply: Regular supply of quality raw material at reasonable prices.
5. Consultancy and guidance: To entrepreneurs in all aspects in regard to making granite
processing a profitable venture.
6. Study and information: In-depth and integrated studies of the granite processing
industries to help in evolving and implementing the above tasks. Study, research exercises
should involve active participation of entrepreneurs and theirbodies.
Information dissemination is necessary for promoting awareness in the industry and public to
develop and explore new avenues in marketing.
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Though the Government has brought the granite industry under the extreme focus
area, many closely associated with it appear to believe that it has got bogged down in
uncertainties.
This is despite the fact the liberalized environment has bought a rationalized regime
for most industry sectors.
The grouse emanates from the inadequate initiative shown by the Centre wherever
individual states have a say in matters. Yet, an optimistic evaluation seems to be that the
industry is set for a facelift with the setting up of Granite Development Council.
The aim of this broad based organization, with industry representatives and
Government officials as members, is to push exports of granite and granite products.
Various interests have taken extreme views regarding the possibility of export growth.
While one section says that exports might cross-even Rs. 2000 corer by the turn of the
century, the pessimistic view has it that it might plummet to even 30 or 40 percent of the
current levels.
This is to say that the future of the industry will depend, to a great extent, on the
policy decisions of the Central Government, and much less on market influences.
The Granite Development Council is in the process of framing a long-term approach
and evolving a national policy. The royalty issue will be discussed threadbare and study the
practice followed by various states so as to evolve a common approach.
This is because royalty has not been uniform in the country and could lead to more
problems as more and more granite deposits of commercial importance are being reported
from various states.
As a result, the recoverable reserves have increased to 4.35 million cubic meters. The
actual reserves must be much more since the Geological Survey of India has calculated it at
200 billion cubic meters.
Over the years the most contentious issue has been of the putts lands. To extract
granite reserves from their own land, private owners were being forced to pay dead rents,
besides royalty.
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Many small miners fall into this category, holding anything up to three acres and the
widespread feeling is that these owners can ill-afford to do it.
Eventually, when it comes to mining proper, the small owners usually found
themselves strapped for cash and comprised by using inferior technology, which leads to high
wastes and lower productivity.
For long the industry had been pleading for speedy disposal of quarry licenses
applications. There have been instances of prospective miners having had to wait for over
five years.
Despite giving Granite Industry the status of a thrust area, not much is being done.
Technology remains poor in most mining units leading to wastes. The value addition remains
low.
As such 51 percent of India’s exports are of crude and roughly trimmed stone, rather
than cut and polished variety, which commands higher price.
Thus India loses its advantage of far cheaper production costs. This is where a country
with poor reserves in granite commands a big share in the global market. Italy, a pioneer in
stone culture owes its status to top class processing and polishing technology. Yet, there are
no incentives or aid, to update technology in our country.
The nascent industry, with its unique advantages should have made good progress in
the five years since it cut its teeth, as it were. But it has been with problems that are largely of
its own making, especially in the scientific exploitation of this valuable foreign exchange
earner.
If the insensible application of business decisions threatens to drag its prospects, the
cut throat competition-without emphasis on quality and market research-may be the undoing
of the industry. Analysis warns that if certain key issues are neglected at this stage, global
giants may pose a serious threat to the entrepreneurs.
Being a net foreign exchange earner, granite exports should be able to expand market
share in terms of volume and price realization because of the advantage of devaluation which
would further increase the competitive price from India. With an average increase of ten
percent in the market every year, a flexible market approach, backed by proper research,
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should bring rich dividends. Instead of too many players chasing the same small market, each
exporter should focus on a select product and nurture a niche market.
Lack of professional approach to marketing and the situation of too many players
jumping into the market without a proper understanding of the industry are serious barriers to
India emerging as a leader in the international market. This is particularly true of Andhra
Pradesh, which accounts for 50 percent of the country’s granite exports.
The acquisition and adaptation of technology is another critical area where the
industry has shown little wisdom. This has caused severe efficiency losses while quarrying
and processing resulting in considerably wastage of the end product. The use of the standard
machinery available in the international market has led to adaptation and assimilation
problems for the industry and added unnecessary capital costs. The high cost of machinery
has only added to the cost of production, which is not commensurate with productivity. All
this warrants a serious look by the industry, which should bring in more effective measures.
The industry has been able to achieve a production efficiency of not more than 50-60
percent from the gang saws (the most commonly used machine), whereas, in Italy and Spain
it is 80 percent.
Even the quality of the labor needs greater attention, as against India per capita
productivity of one cubic meter in Italy and Spain it is about 30 cubic meters. A right mix of
machines and an improvement in labour efficiency would go a long way in increasing the
overall production.
Another serious obstacle to India emerging as a major player is quality. Inadequate
attention to the dressing of blocks before shipping has marked the country’s reputation
abroad. Interestingly not one granite company has gone in for ISO 9000 Certification, an
effective marketing tool for a sustained presence in the international market.
As for other production processes, which affect the efficient exploitation of the raw
material, line balancing is an important area that has been given the short shift, adding to the
already heavy burden on the capital cost of units.
Greater capacity than that required in parts of the three items of machinery gang saw,
polishing equipment and edge-cutting gadgets has led to unnecessary capital costs, affecting
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productivity and, hence, pricing. With high interest costs and non- commensurate price
realization, many companies are finding it difficult to service their loans.
The liquidity crunch has only aggravated their problem of working capital. If
mortality has not set in, it is basically because of the huge demand. The granite industry
received the prompt attention of the Government in the removal of certain discrepancies. It
did away with the 10 percent export duty.
Granite has been added to the list of „extreme focus? items for exports, which should
be a great boost to the industry. Besides the formation of the development council for the
granite industry should act as a catalyst to exploit the full potential of this foreign exchange
earner. Another development was the establishment of norms by a national committee based
on performance parameters of the industry.
This should enable a better appraisal of the industry by funding agencies; it should
also help the industry acquire a competitive edge and move confidently towards a preeminent position in the International market.
Although the Government has given the industry priority status, some concessions,
such as the relaxation of import duty on certain processing equipment, and incentives for the
setting up of equipment manufacturing units within the country would go a long way in
proving greater encouragement.
The Union Government also decided to provide a major boost to the Rs. 1,500 crore
granite exports from the country through various policy initiatives. The policy changes on the
anvil for the granite sector include bringing down the threshold limit for providing benefits
under the export promotion capital goods (EPCG) scheme for import of machinery for granite
processing from the present level of Rs.20 crore to Rs.5 crore, provide incentive under
Section 80 HHC of the Income Tax Act, allowing import of mining equipment for granite
under the EPCG scheme and link export of rough granite to export of processed granite in a
ratio of 1:5.
The granite processing units at present have to import machinery worth Rs.20 crore
for obtaining Export Promotional Capital Goods benefits. It has now been proposed to bring
this down to Rs.5 crore, which will provide relief to several smaller granite processing units.
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Import of granite mining equipment will also be given Export Promotional Capital Goods
benefits, which they do not enjoy at present. The proposal to link export of rough granite to
export of processed granite in a ratio of 1:5 has been taken to promote value-added exports of
granite.
The Union Commerce Ministry estimates that the Indian granite industry has potential
to increase granite exports if pragmatic policy measures are adopted both by the Centre and
the State Governments.
While renewing the license for granite mining, it was also proposed to ease the
procedures for granting leases, royalty and dead rent between states to avoid any internal
competition.
The mining industry would take necessary initiatives to ensure that dead rent was
changed on part with industrial mineral under the Mineral Concession Rules of the Central
Government.
The ministry was also planning to give leases for a period of 20 to 30 years, and
automatic approval for the renewals. Besides, it was also considering reducing the royalty for
the waste material generated during quarrying which was suitable for construction of roads
and railway billets.
The state Governments has to grant additional areas for quarry development at
nominal rent. The ministry is also planning to exempt the levy of dead rent for two years in
the interest of rapid development of the industry, access roads, dig-trail pits and demand
generation would take considerable time.
Granite is not a mineral but is deemed as a mineral for the purpose of regulating the
licenses. It is purely a decorative product besides a few engineering applications like surface
plates and rollers etc.
Granite is not a new thing for India. All the granite varieties that are exportable today
were used and are still being used as ordinary rustic stones and as road jelly’s. But, quite
suddenly granite is dramatized as if something very important and as a newly found product.
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SRI MALAI GRANITES AND EXPORTS
Granite industry and its growth purely depend upon a long-term strategy and
organized planning. Since the rustic stone has to be converted into a global stone to compete
in the international market, the stone industry needs to put lot of efforts and energy to satisfy
the customers discriminating needs.
The dimensional stone quarrying for export marketing needs substantial investment.
For running a quarry, one has to plan an investment of minimum Rs.1 crore if he desires to do
a scientific quarrying. But, to run a quarry on the international standard, one has to plan an
investment of about Rs. 5 crores. One quarry needs such a big investment.
The granite industry is labour intensive and highly power consuming. There is no
other mining industry in the world which requires such heavy handling equipment’s where
the product is so hard, rugged and a huge monolithic. These specialties are rarely understood
and noticed by the public and even by a person entering into the stone industry.
The Government could avoid this situation in the granite industry by throwing open
and allowing the entrepreneurs to plan freely like the major minerals. This will help
substantial investment, employment generation, scientific quarrying and good exports. Why
the various officials all over the country insist that all granite entrepreneurs should set up
cutting and polishing factories and export only polished granites. This kind of condition is not
insisted on all other minerals. But, the granite industry is severely dealt with in a cruel
manner with unnecessary conditions and regulations. No other country is insisting these kinds
of conditions for granite. Unfortunately, the ordinary granite still used for road metal is being
battered and the entrepreneurs are all thrown over helter-skelter with all unrealistic policies.
Granite is a fashion oriented aesthetic product. Preference on some granites and
loosing markets for certain granite varieties are all routine features. Therefore, the granite
policy should be totally flexible. Andhra Pradesh state Government which is always a pioneer
in many fields should not lag behind in developing the granite industry in the state.
The Government should facilitate easy self declaring permit systems for transporting
the granites from the quarry to the factory or to the port, as the quarries are located in small
villages and the Geology offices are located in towns and frequent travelling of long distance
and taking permits delays the operations. As against this, even continuous sales tax payers
make only declarations in proper form and remove and transport the goods. Same kind of
trust can be followed regarding granite industries also.
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The granite industry will be a social stabilize in offering a guaranteed job for the
village people in the chronic drought prone regions. This could be a diplomatic and cultural
ambassador for our country’s image as the stone clad building abroad will stand permanently
as a monument with a tag of Indian stone.
The granite industry has received a fresh lease of life with the government
announcing the Granite Conservation and Development Rules. The industry has witnessed a
slowdown in the recent years because of the absence of a uniform mining policy and the fall
in demand for Indian products from the major markets in South-East Asia. However, with the
new policy and the markets showing sign of revival, the industry is likely to gain momentum
in next few years.
The Granite Development and Conservation Rules will help in systematic exploitation
and conservation of reserves in the country. The rules have removed bottlenecks by way of
formulating clear-cut guidelines on issuing prospecting licenses as well as granting renewing
of mining leases. Many quarries which stopped working for want of leases is expected to start
functioning. The new policy is definitely going to attract investments, especially in the
mining sector. It may take at least two to three years before the investments start flowing-in.
The investments may be either direct or through joint ventures.
In a significant move, the Union Government has come out with a uniform framework for the granite industry to facilitate systematic and scientific exploitation of the mineral
throughout the country.
Every holder of a prospecting license for granite will have to submit within 60 days a
scheme of prospecting to the State Government indicating the manner in which he proposes
to carry out the prospecting operation.
The new framework is a sequel to the notification issued by the Department of Mines
in the Ministry of Steel and Mines. Under this policy, granite lease will not be granted or
renewed by the State Government unless there is a mining plan approved by the State
Government or any person authorized in this behalf by that Government for the development
of the granite in the area concerned. No individual will commence the mining operations for
granite in any area without the approval of the State authorized officials.
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SRI MALAI GRANITES AND EXPORTS
Similarly, where mining operations for granite have been undertaken before the
commencement of these rules, the holder of such lease will have to submit a mining plan
within a period of one year from the date of commencement of these rules.
After all these procedures, the prospecting and mining operations will have to be
carried out in such a manner so as to ensure systematic development and conservation of
granite deposits and protection of environment.
The new policy in the mine leasing policy, where basically granite is treated as a
minor mineral which comes under the State list, will upgrade the granite into a major mineral
one of the major problems currently faced by the granite industry was that the Government
did not care to upgrade the technology used in mining.
If permission was given to import state-of-the-art machinery for use in the early
stages of mining, the percentage of recovery could be improved, wastage reduced and blocks
produced in sizes of international standards. This would cut down costs by toning up
productivity levels.
India has its own potential strength despite certain short comings and policy frame
works of certain states. Its market consolidation in certain products like building slabs, tiles,
monuments and dimensional blocks are fully expected and appreciated all over the world.
Today, the awareness for Indian Stone varieties has strongly grown. There is also
awareness of Indian Quality and the capabilities of Indian factories. Logically, Indian exports
have transformed more towards the processed high value products from dimensional blocks.
But, India has not converted the national stone advantage into power like China.But the
Indian resource strength with the integration of modern technology, with right supportive
policies of the Government, the conservation to high value productivity and strong marketing
will determine the economic power in every product in the long run.
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Chapter 4
SWOT Analysis
STRENGTHS
? Large deposits of superior quality Granite are availablenearby sri mal granites
And exports
? Large variety of types and colors.
? Accessibility to major Granite deposits.
? Significant number of mines.
? Availability of improved technology.
? Availability of required infrastructure facilities
Weakness
?
?
?
?
Untimely and inappropriate arrangement of finance
Lake of equality production.
Incapability of meeting consistent supply.
Low production because of Non – scientific quarrying Use of Primitive method of
quarrying
Opportunity
? The factory region/area has become SEZ (special economic zone)
? Large and established market
? Cane become market leader
THREATS
? Lack of high - skilled work force
? Huge cost sophisticated equipment
? Change in Government policy
Chapter 5
LEARNING EXPERIENCE
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? Visiting of Sri Malai granites and exports Pvt. Ltd. has given a clear picture of work
flow of the complex structure of organization
? We were able to
understand
organizationvarious policies ,behavior, culture
,performance and its future strategiesof organization
? Production unit head had provide us a brief information about communicating and
interacting with the employees we were able to understand adjust issues in
organization
.
? Within a short period of time the company had provide us all the necessary
information.
? The interpersonal relation and concussive environment was found in sri malai granites
and exports.
Chapter 6
Bibliography
?
?
?
?
www.msmgranites.com
www.Stonetileindia.comhttp://www.aarst.orgcom/http://www.naturalstonespecialist.com/information/stonemarket.php
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