CHAPTER ‘ 1
INTRODUCTION
1.1 Introduction about the Internship Project:
An internship project work is on-the-job training for many professional jobs, similar to an apprenticeship, more often taken up by college and university students during his undergraduate or master degree in their free time to supplement their formal education and expose them to the world of work. Internship project work offer various occasions to interns during internship program to expand familiarity in their choose area of work, to find out what they have an importance in an exacting in specific line of business, develop professional network links, build interpersonal skill etc.
An objective of the internship project work is to expose the students to understand the working of the organization / company / industry and take up an in-depth study of an issue / problem in the area of specialization.
The project work shall be for a period of 10 weeks immediately after the completion of 3rd Semester Examinations but before the commencement of the 4th semester classes.
With this respect I have under taken my internship project work at ‘Schneider Electric India Pvt. Ltd, Bangalore’ from 16th January 2018 to 23rd March 2018 for a period of 10 weeks.
During the internship project work in the company I have decided to study Financial Performance. For this purpose I have choose the ‘Schneider Electric India Pvt. Ltd, Bangalore’ for the purpose of the study.
1.2 Industry Profile:
Introduction about the Manufacturing Industry:
Manufacturing is the production of merchandise for use or sale using labour and machines, tools, chemical and biological processing, or formulation. The term may refer to a range of human activity, from handicraft to high tech, but is most commonly applied to industrial production, in which raw materials are transformed into finished goods on a large scale. Such finished goods may be sold to other manufacturers for the production of other, more complex products, such as aircraft, household appliances, furniture, sports equipment or automobiles, or sold to wholesalers, who in turn sell them to retailers, who then sell them to end users and consumers.
Manufacturing engineering or manufacturing process are the steps through which raw materials are transformed into a final product. The manufacturing process begins with the product design, and materials specification from which the product is made. These materials are then modified through manufacturing processes to become the required part.
Modern manufacturing includes all intermediate processes required in the production and integration of a product's components. Some industries, such as semiconductor and steel manufacturers use the term fabrication instead.
The manufacturing sector is closely connected with engineering and industrial design. Examples of major manufacturers in North America include General Motors Corporation, General Electric, Procter & Gamble, General Dynamics, Boeing, Pfizer, and Precision Castparts. Examples in Europe include Volkswagen Group, Siemens, FCA and Michelin. Examples in Asia include Toyota, Yamaha, Panasonic, Mitsubishi, LG and Samsung.
History and Development of Manufacturing Industry:
In its earliest form, manufacturing was usually carried out by a single skilled artisan with assistants. Training was by apprenticeship. In much of the pre-industrial world, the guild system protected the privileges and trade secrets of urban artisans.
Before the Industrial Revolution, most manufacturing occurred in rural areas, where household-based manufacturing served as a supplemental subsistence strategy to agriculture (and continues to do so in places). Entrepreneurs organized a number of manufacturing households into a single enterprise through the putting-out system.
Toll manufacturing is an arrangement whereby a first firm with specialized equipment processes raw materials or semi-finished goods for a second firm.
Manufacturing industry has also reached a high level of development in the other socialist countries.Among the capitalist countries, those with the most highly developed manufacturing industries are the United States, Japan, the Federal Republic of Germany, Great Britain, France, Italy, and Canada.
Indian Manufacturing Industry:
The Indian economy is firmly on the path of steady growth. Even during the last decade when other countries were in the grip of a massive slowdown, India continued to enjoy a comfortable economic position. This recent spurt in growth is propelled by radical reforms such as the removal of restrictions on foreign investment and industrial de-licensing. Tailoring the EXIM policy to promote exports and aligning the import duties to meet WTO commitments further contributed to this development. This trend is expected to continue over the next five years, driven by a favorable business policy environment in terms of tax cuts, broadening tax base, and reduced interest rates.
The liberalization of the economy has opened new windows of opportunity for manufacturing sector. Increasingly the success of manufacturing industries is dependent on innovations, research and development. It is critical not only to remain competitive but also, significant advantages can be gained by developing and commercializing new technologies With a size of US $ 22 billion, the engineering sector exports stood at US $ 6.6 billion in 2001-02 and imports at US $ 4.9 billion the same year.
Indian engineering manufacturing sector employs over 4 million skilled and semi-skilled workers. The engineering manufacturing sector comprises of heavy engineering (70%) and light engineering (30%). India’s growing integration with the global economy and the government’s recognition that infrastructure needs to be overhauled are likely to ensure that the trend rate of growth increases in the next decade.
According to a study recently conducted by global management consulting firm McKinsey and Company, the Indian manufacturing industry is expected to touch US$ 1 trillion by 2025. Industry experts accredit the increasing demand of manufacturing units and the penchant for setting up low-cost plants in India by multinational firms for this possible development.
Around 90 million domestic jobs are waiting to be created by that timeframe with the manufacturing segment contributing about 25-30% of India’s gross domestic product. India’s rapidly expanding economy is giving both international entrepreneurs and home players an array of opportunities to venture out and grow.
Key market drivers for the Indian Manufacturing Industry:
1) The Indian manufacturing sector has been witnessing a sluggish growth due to deceleration in investment.
2) The national manufacturing policy suggests raising the share of manufacturing in GDP to 25% in order to create 100 million jobs in the coming decades.
3) Additional capacities are being planned to be installed in all the major manufacturing units.
4) A public procurement policy has been proposed incorporating technology along with common facility centers while the Khadi Mark steps has been launched to promote Micro Small and Medium Enterprises.
Importance of Manufacturing Sector in India’s Economic Growth:
The structural transformation of the Indian economy over the last three decades has been spectacular growth of the services sector, which now accounts for about 50 per cent of the GDP. However, the rapid growth of the services sector much before the manufacturing industry attaining maturity is not a healthy sign. A knowledge -based economy cannot be sustained in the long run unless it is adequately supported by a growing manufacturing economy. Moreover, a service economy cannot continue to thrive on a long-term basis in a country where over 80 per cent of the population is education below the middle-school level.