TABLE OF CONTENT

CHAPTER

TITLE

PAGE NO:

INTRODUCTION 1.1 INTRODUCTION 1.2 INDUSTRY PROFILE 1.3 COMPANY PROFILE 1 3 7 15 17 17 20 27 29 33 36 38 42 44 46 47 47

2.1 ORGANISATION STRUCTURE 2.2 DESCRIPTION OF DRPARTMENTAL FUNCTIONS 2.1.1 PERSONAL AND ADMINISTRATIVE DEPARTMENT 2.1.2 PRODUCTION DEPARTMENT 2.1.3 COMMERCIAL DEPARTMENT 2.1.4 FINANCE AND ACCOUNTS DEPARTMENT 2.1.5 RESEARCH AND DEVELOPMENT DEPARTMENT 2.1.6 QUALITY CONTROL DEPARTMENT 2.1.7 MARKETING DEPARTMENT 2.1.8 MAINTENANCE DEPARTMENT 2.1.9 PROJECT DEPARTMENT

3.1 PROJECT PRIFILE 3.2 MARKET POTENTIAL 3.3 FINANCIAL PERFORMANCE SWOT ANALYSIS SUMMARY AND CONCLUSION 5.1 FINDINGS 5.2 SUGGESTIONS 5.3 CONCLUSION

53 53 54

LIST OF TABLES

TABLE NO:

TITLE

PAGE NO:

1 2 3 4 5 6 7 8

Major companies producing kaolin Working pattern of the company Employees list Forms of clay List of products Profitability ratios Turnover ratios SWOT summary of EICL

6 10 10 22 46 47 48 51

LIST OF CHARTS

CHART NO:

TITLE

PAGE NO:

1 2 3 4 5 6 7 8 9 10 11 12

Organizational chart of EICL Personal and administrative department char Production department chart Production process Various process in plant 1 & plant Commercial department chart Finance and accounts department chart Research and development department chart Quality control department chart Marketing department chart Maintenance department chart Project department chart

16 17 20 45 26 28 29 34 36 38 42 45

CHAPTER 1

1.1 INTRODUCTION

The early history of the industry is, as would be expected, very much concerned with the discovery and production of china clays for use in ceramics. The story, though, starts thousand of year ago and thousands of miles way China, the pure white porcelain used by the Chinese, was discovered many thousands of years ago and has always been a much-prized material. Despite many attempts to find sources elsewhere, it remained elusive until a few deposits were found in some parts of Europe and in America early eighteenth century. As more potteries made use of porcelain, so the demand grew and by the early nineteenth century the kaolin industry has become highly successful, with many of the potters owning rights to mine the materials for themselves. In addition, by the middle of the nineteenth century, china clay was increasingly being used as a raw material by the developing paper industry
OBJECTIVE OF THE STUDY

To fulfill the requirement of the curriculam. To study about the history of the organization, its vision and mission. To understand the organizational hierarchy. To study how each department function To know about the history of the organization, its vision and mission To know about the products and production process

SCOPE OF THE STUDY

The organization study is intended to learn about the working of the organization, its policies and administrative procedures. The study provides a chance to understand how theory is applied in practice by interactions with various department in organization. Thus the corporate knowledge and strategies will become familiar.
LIMITATIONS OF THE STUDY

Since the study is conducted at Veli, Thiruvanathapuram, it lacks the detailed information regarding, the mining centre at Thonnakkal. The conclusion and interference are drawn on the basis of data received from personal interviews and it may not be accurate. No set of rules have been followed in collecting the information. Sampling is not possible in this study financial statements conditions are generally ignored
1.2 INDUSTRY PROFILE

The early history of the industry is, as would be expected very much concerned with the discovery and production of China clays for use in ceramics. The story, though, starts thousands of years ago and thousands of miles away. China clay, the pure white porcelain used by the Chinese, was discovered many

thousands of years ago and has always been a much-prized material. Despite many attempts to find sources elsewhere, it remained elusive until a few deposits were found in some parts of Europe and in America early in the eighteenth century. As more potteries made use of porcelain, so the demand grew and by the early nineteenth century the kaolin industry had become highly successful, with many of the Potters owning

rights to mine the material for themselves. In addition, by the middle of the nineteenth century, China clay was increasingly being used as a raw material by the developing paper industry. Early in the twentieth century, the industry was made up of some seventy or so individual producers, each competing on price with little regard for marketing or standards. There was almost no capital investment or product development and overproduction was great, wages were low and working conditions were poor.
KAOLIN

Kaolin is a clay mineral more correctly known as kaolinite. It is also called China clay. Kaolin is made up of individual crystals that from units termed booklets of stacked sheets. Kaolin is a soft mineral, white in color when is purely fair. China clay is naturally hydrated Aluminum Silicate. It is one of the most abundant clay on Earths crust. A large variety of China clay is mined all over India. Kaolinite is one of the most common minerals; it is mined, as kaolin, in Brazil, France, Britian, Germany, India, Australia, Japan, China, and the southeastern U.S. states of Gergia, Florida and to a lesser extent, South Carolina. Due to its extremely fine nature (finer than silt), it is mixed with water and transported in tanks as liquid slurry. It is used in ceramics, medicine, bricks, coated paper, as a food additive, in toothpaste, as a light diffusing material in white
incandescent

light bulbs, and in cosmetics. A recent use is a specially formulated spray applied to

fruits, vegetables, and other vegetarian to repel or deter insect damage.

INDUSTRIAL APPLICATIONS

China Clay is the heart of several industries like potteries, tiles, ceramics, glass and others. 1. Paints Clay is used in wide varieties of paints like distemper, cement primer, wood primer, emulsion paint, texture coating, spray plaster, putties, fillers and undercoats.

2. Paper

It It is used in varieties of papers, cardboards, hardboards and others.

3. Plastic

is used to filler in combination with other to impart strength and smoothness.

4. Elecrical Industry 5. Cosmetic & Soap

It is used to for electrical insulation, high voltage insulation compounds electrical wires, EPDN rubber and others China Clay is used in toothpaste, cosmetic and soap industry

USES OF KAOLIN IN FUTURE

Some of the uses listed below are already commonplace while others are innovative and in the developing stage. 1. Plastic film, Video and audio tapes, where clays are used as antiblocking agents. 2. Laundary products, Washing powders and detergents. 3. Decorative concrete, Mortras and renders. 4. Mark-resistant polypropylene for automotive use thermoset mouldings for baths and shower trays.

5. Lightweigt concrete water treatment sysens 6. Biotechnology, Ability of lightweight high-strength cermic materials to support micro organisms.
MAJOR COMPANIES PRODUCING CHINA CLAY

Ashapura Minecham Ltd Imerys Minerals. Ltd, U.K Tiele Kaolin Company, U.S.A Goonvean Ltd, U.K Longyan Jindal Minerals Development Co.Ltd. Tolsa Group
KAOLIN IN INDIA

In India the production of kaolin is about 2,00,000 metric tons. India is a major producer of kaolin in Asia. India is a not a good consumer of kaolin. The kaolin import to India is less compared to other to other Asian countries.
Table : 1 Major Companies Producing Kaolin Companies Areas of Activity

Alchem Impex 6olkata, IND Kerala Ceramics LTD Kundara, IND Birla Minerals & Chemicals kote, IND

Bentonite, Graphite Powder, kaolin Proclainware, kaolin Bentonite, Kaolin, Organophillic clays

1.3 COMPANY PROFILE

English Indian clays Limited, established in 1966, operated China Clay mine in the southernmost state of India, in lush green Kerala. The Companys clay mining and refining operations center around Trivandrum where the processing plant producers several grades of refined kaolin (China clay-both Spray Dried and Rotary dried), Metakaolin and Calcined and Ultramarine industries. The plant capacity is 190,000 metric tons per annum and is the biggest in South East Asia. EICL has been set up Application Laboratories that focuses on specific industry requirements to develop suitable grade of products and provides application support to customers to achieve best results from its products.
HISTORY OF THE ORGANIZATION

EICL, a company incorporated in India, was part of the erstwhile Thaper group. The company was incorporated in 1963 in technical and financial collaboration with English China clay Ltd. U.K the pioneer and then world leader in processing. This collaboration with ECC ceased in the year 1992. EICL has two key divisions, viz, Clay and starch divisions. The clay division, having three manufacturing locations in Kerala, specialize in mining and processing of high and kaolins. Both the divisions of EICL have grown to be market leaders in their respective fields. This growth has been chiefly driven by prudent investment in world class R&D facilities for research in Kaolin and enabling these business to be specialized solution provides for various applications spanning diverse industries

VISION OF ECIL

To be a leader in processed China clay market I Asia and to be an employer of choice, fostering a culture that values dedication, respect, and continuous improvement.
MISSION OF ECIL

To provide consistently high quality products and materials to our customes in a safe, timely and efficient manner, at the lowest possible cost and to grow with them and ensure the growth and development of employees of the Company in order to achieve the objectives of the organization and the career goals of the employees.
CORPORATE PROFILE CHAIRMAN DIRECTORS : : Mr. KARAN THAPAR Mr.B.M. THAPAR Mr. SOM NATH DUA Mr. SURESH KUMAR TOSHNIWAL Mr. JAINENDER KUMAR JAIN Mr. VIJAY RAI BANKERS :

ICICI Bank limited UTI Bank limited Oriental Bank of Commerce State Bank of India State bank of Indore

SHARES OF LISTING

Bombay Stock Exchange

REGISTERED OFFICE OFFICE

: :

TC-79/34,

Veli,

Thiruvananthapuram-21.

KeralHEAD

N-75, Connaught Circus, New Delhi-11

It is a 24 hr working company. The working time is divided in to three shifts.

Table : 2

Working pattern of the Company A Shift B Shift C Shift (Annual report of EICL) There are total 361 employees working in ECIL
Table:3 Employee list

6 a.m to 2 p.m 2 p.m to 10 p.m 10 pm. To 6 a.m

Catogory Officers & Staff Workers (at veli plant and mine) Emloyees at SPD Apprentices & trainees Total (Annual report of EICL)

Numbers 94 93 46 28 361

CHAPTER-II

ORGANIZATION STRUCTURE 2.1 Organization structure

Departmentalization means, dividing the large and complex Organization into smaller flexible administrative units. It is the organization wide division of work and to various manageable units or department. It shows the horizontal differentiation as in an Organization. It is the grouping of the activities and employees into the department. It is a method of arranging of the activities to facilitate the accomplishment of the Organization objectives. Detailed and well defined policies and procedures which each department has to follow during its different operations have been laid down by the company. Under ISO, all the procedures are highly standardized and separate manuals are issued to all departments.
EICL-DEPARTEMENTS

Personnel and administration Production Commercial Finance & Accounts Research & Development Quality Control Marketing Maintenance Project

Chart 1 ORGANIZATIONAL CHART OF EICL

CHAIRMAN

EXECUTIVE DIRECTOR

VP-W

GM-DPD

GM-O

SM-HRA

DGM-C

DGM-M

GM-M

Q C in Charge

SM-R & D

SM-F & A

SM-PROJ

M-Tech

VP-W GM-SPD GM-O SM-HRA DGM-C GM-M

Vice President Works General Manager Specialty Products Division General Manager Operations Senior Manager Human Resources and Administration Deputy General Manager Commercial General Manager Marketing

 SM-R & D

Senior Manager Research and Development

SM- F & A Senior Manager Finance and Accounts SM-Proj M-Tech Senior Manager Project Manager Technical

10
Chart 2 2.1.1 PERSONAL AND ADMINISTRATIVE DEPARTMENT

SENIOR MANAGER HR & A

ASSISTANT MANAGER P &A

JUNIOR EXECUTIVE HRA

PERSONAL SECRETARY to EXECUTIVE DIRECTOR

JUNIOR EXECUTIVE IR

SECURITY IN CHARGE

SENIOR ASSISTNT P&A

SENIOR SUPERVISOR P&A

SECRITY ON CONTRACT BASIS

DRIVER/ PEONS

11

Policies and practices The policies and practices of P&A departments are in line with also 9001:2000 and also conform to the provisions laid down in various acts, some of which include: Trade Unions Act 1926 Industrial Disputes Act 1946 Industrial Employment Standing Orders act 1947 Workmens Compensation act 1923 Mines Act 1952 Factories Act 1948 Employees State Insurance Act 1948 Payment of Wages Act 1936 Employees provident Funds Act 1952 The personal department of the company performs both Human resources development (HRD) and Administrative Functions.

HRD functions HRD functions cover the following functions: Selection and placement of employees Performance rating of trainees/probationary and confirmed employees Training need assessment Training and development programme Welfare activities

Joining formalities

12

The copy of signed joining letter should be given by the candidates. After this the certificate is verified to check the eligibility. Then a duty joining report is made by the candidates in which all the details about the certificate and other things given to the organization by the candidates are mentioned. This is kept as the personal file of the employee for future reference. Thus every employee of EICL has personal file. After the joining of the employee an induction program is conduct by P&A department. Induction program may be for 3 or 4 days or may extend to one week. After the induction program a report is submitted by the employee. This report is discussed wit HOD. It is also reviewed by the vice president. If the vice president thinks that the induction program is sufficient then the employee can join the work. Training & development

Training is given frequently by the P&A department to the workers, staff and officers. The department uses internal and external support for training employee. Annual training program is conducted for workers, staff and officers. Every year the performance of the last year is reviewed and plans for future is also made. Performance appraisal Performance appraisal for workers is done in every quarter. The

workers are given a form in which 15 attributes like quality of work, quality of life etc. This is verified by the HOD and the employee is given appraisal. There are three grades of employees workers, staff and officers. The workers are on a long term settlement of for years with the company. The company and employees come to an agreement about the salary, welfare activities
M-M M.PDT and incentives for fore years.
Chart 3

GM-OPERATIONS

SM-OPERATIONS

M.ENGG 13 AM.ENGG

M-EXPORTS

AM.PDT

2.1.1 PRODUCTION DEPARTEMENT

AM.ELECT

EX.PDT

JR.EX.PDT

JR.EX.ENGG

M.TRAINEE (JR.EX.GRAD E

SR.S.PDT

SIC/ENG JR.S.ENGG A.S.ELECT

MAINT.WORKERS PLANT WORKERS MAINT.WORKERS [ELECT]

14

Trade Unions Thiruvananthapuram district clay welfare union(CITU) Thiruvananthapuram district employees union(AICTU) EIC Workers congress(INTUC-I) EIC ?Factory employees union(UTUC0 Thiruvananthapuram district clay general employees union(AITUC) EIC Mazdoor sangh(BMS) EIC Technical employees council

PRODUCTION DEPARTMENT INTRODUCTION

The Production department is the core of the company. The production process takes place in various plants. Plants refer to the buildings used in connection with the manufacturing, processing, labeling and storage of calcinated and hydrous clay. EICL has four plants, first 3 plants a Veli and fourth plant at thonnakkal. In Plant 1 the product is dried using rotary drier, which operates at high temperature. Plant 2 is a spray drier which does direct drying. In plant 2, a spray drier called Atomizer is used for obtaining products in the granular form. Both the plants are used for producing hydrous clay..plants 3 has been shut down and Plant 4 at Thnnakkal is used for the production of calcined clay.

Table: 4

15

Form of clay Type of Clay produced Hydrous Clay (With Water Content) Calcined Clay(Without water Content) [Annual report] Process The various processes involved in the productions of hydrous and calcined at EICL re as follows: Spray Dried, Powder IV Available Forms Lamp, Powder,Spray dried Plants I & II

1) Mining The raw material is extracted from the bottom portion of the earth using excavators. The mined clay is loaded in tipper Lorries and transported to the plant, where they are graded on color in a year. 2) Matrix Analysis It mainly deals with analyzing and grading the clay matrix based on color. Generally matrix is found in 3 colors- white, grey and pink. White color indicates pure clay. Grayish tint indicates the presence of graphite and a pink color denotes iron (ferric) content. This is done with the help of process control lab which decides the blend of grades that go into the production process according to customer requirements.

3) Matrix Blending

16

The different grades of clay matrix are mixed in appropriate proportions as per process control lab to obtain raw materials of desired characteristics according to customer requirements. The process control lab is responsible for deciding the quality of the matrix coming from the mines. This is done with the help of the quality control department. It also decides the blend of grades that go un to the production process according to the requirements of the customers. This is based on the type of product to be produced on the particular day. It also keeps an eye on the quality of the product during various stages of productions. 4) Blunger Operations

Here water is added to raw materials (clay matrix) to form the slurry. The clay matrix in bulk form is fed to the machine called Bungler with addition of water to form the required amount of slurry. 5) Classification It is the process of separating the higher grid particles from he slurry. Through this processes, 25 to 10 percent of sand gets removed. 6) Hydro cyclone Process This is a two stage process. In the first stage the slurry after classification is passed on to a 14 Hydro cyclone, where there is a primary vortex formation by which the residue moves downwards to the nozzle and the secondary vortex moves the product upwards and in the secondary stage passes in to the 3 Hydro cyclone where he remaining sand gets removed. The first stage removes heavier sand particles and the second stage removes the
17

smaller grit particles. After removing the grit particles and other impurities the refined product in the form of slurry is stored in storage tanks. 23 7) Bleaching It is the process of separating the impurities like iron particles by subjecting the refined to chemical separations. Its chemically treating the refined impurities. Bleaching agent used Hydrosulphite. Hydrosulphite bleaching of clay removes iron impurities and allows clay to be bleached to perfect whiteness. Sodium Hydrosulphite transforms trivalent iron to bivalent which, on subsequent acid treatment (by adding sulphuric acid which reduces the pH value to 2.5), dissolves and removes iron from the clay. To neutralize the acid content of the slurry and to prevent iron from revamping. Corbonate and soda ash is added to the slurry and the bleached

slurry and the bleached slurry is then collected in a holding tank. Having refined the clay, it is moved on to the final process i.e. drying. 8) Drying Drying refers to converting the slurry which contains 65 percent water in to final products in the form of solid (lumps 7 powder) through the following operations. 9) Screening The bleached slurry (containing 12 percent salts) is subject to screening through which graphite and other foreign materials are screened off and then pumped and assed through a filter cloth. 10) Filter pressing
MINING

TRANSPORTATION

GRADE 18 MATRIX ANALYSIS the filter cloth, the slurry gets converted to cake from with 65 percent salts and 35 percent water.

UNLOADING AS MICROHEAPS AS PER Here, a hydraulic filter is used to drain off the excess water. On passing through

The cake is collected and it is sliced using a cutter. Here on, the drying process varies depending MATRIX BLENDNG on the plant in which it is carried out. Plant 1 makes use of indirect drying through a rotary drier
BLUNGER OPERATIONS and 2 does direct drying by means of a spray drier.

PRODUCTION PROCESS

CLASSIFIER OPERATIONS Chart: 4 14 HYDROCYCLONE 3 HYDROCYCLONE STROAGE TANKS BLEACHING OPERATION

BLEACHED STORAGE TANKS

PLANT 1

PLANT 2

PLANT 1

PLANT 2

SCREENING OPERATION FILTER PRESSING OPERATION

Chart 5 19

SCREENING OPERATION FORCED FILTRATION FILTER PRESS

Various

PADDLE MIXTURE Processes in Plant 1 and Plant 2 OPERATOIN

KNEEDING OPERATION

STORAGE IN VISCOCITY TANK INDIRICT ROTARY DRING OPERATION FEED PUMP

DISPATCH TO LUMP SILO DIRECT DISPATCH

MILLING OPERATIO N ORDER SILO BAGGING MACHINE & DISPATCH

AUTOMATION

DRY POWDER TO STORAGE SILOS 50 KG BAGGING MACHINE DISPATCH TRUNK 1 TON JUMBO BAGGING DISPATCH TRUNK

2.1.3 COMMERCIAL DEPARTEMENT

20

The commercial department is concerned with purchasing and storing of materials in English Indian clays ltd. The commercial department in EICL is responsible for the procurements of raw materials, chemicals, spares and packing materials, vendor development of imported materials. Functions Purchase of raw materials, chemicals, machines, machine parts, electrical iterms, spares and other packing materials. Develop new vendors for supply

Vendor evaluations and vendor assessment Import of spares items and capital goods To procure raw materials from own resources and also from other vendors Purchase indent fulfillment Inviting quotation for selecting vendors Issue of work orders to other contractors like purchase orders etc.

Classification Purchase department Store department

1) Purchase department The work of purchase department starts when it receives formal request from the
21

Storage Manager for purchasing certain materials. This request is known as Purchase Requisition. On receipt of purchase requisition the purchase department places the necessary order as Purchase order. 2) Stores department Store department stores purchased materials, parts of equipment, chemicals etc, the stores department keeps various records like receipt register, indent book, receipt bookstore, and issue slip, etc. two plants are there over he firm, for both of those plants the company is having one stores department.

Chart 6 ORGANIZATION STRUCTURE-COMMERCIAL DEPARTMENT DGMCOMMERCIAL

MANAGERCOMMERCIAL

COMMERCIAL
EXECUTIVECOMMERCIAL EXECUTIVE-STORES

JUNIOR SUPERVISOR-STORES SENIOR SUPERVISOR COMMERCIAL JUNIOR ASSISTNTCOMMERCIAL/ TRAINEE

STORE BOY

Chart 7

FINANCE AND ACCOUNTS DEPARTMENTS

22

Sr.Mgr F & A

Account officer

Jr.EXE system

EXE- Accounts

Sr.ASSt F&A ASST

The finance and accounts department is responsible for the financial functions and activities of the company and for the administration of the companys fiscal policy. The activities include budget preparation, monitoring the income and expenditure, MIS reporting audits, tax administration updating the shareholders on the financial health of the company, Maintaining accounting records, preparations of financial statements and ledger administration. Activities The main activities of the department includes 4.5.1 Budgeting Individual budgets are prepared by the concerned departments and master budget
23

is prepared by t he finance department. Budget is normally prepared 3 months in advance and has to be approved by the chairman. 4.5.2 Financial Accounting EICL has in-house accounting software and has standardized on chipper as their development platform. The database used is FoxPro. Financial department maintains separate ledgers for the three plants in EICL. The ledger for first plant is known as manufacturing ledger. This includes office expenses and normal administration expenses. Ledger for the second plant is known as spray drier ledger. Ledger for the third plant is known as calcined ledger.

4.5.3 Cost Accounting/MIS preparations The EICL has installed MIS for better operation. It is maintained by the finance department. It is prepared on the second of every month. This include various financial statements like profitability statements, cost sheets, profitability statements for mines, store trend, drawing power trend, debtors, age-wise analysis, cash flow and fund flow statements and ratio analysis. 4.5.4 Audit Compliance Both internal and statutory audits are conducted. Internal audit is done once in 6 months by varma and Varma. Statutory audit is done on a quarterly basis by M/S price water house, Charted Accountants, Delhi. The payroll prepared by the HR departments has to get approval from the finance department has to get approval from the finance department before disbursing it. The other functions include statutory compliances and fund management. 4.5.5 Ratio analysis Analyzing financial statements, is a process of evaluating relationship between component parts of financial statements to obtain a better understanding of a firms position and performance. Ratio Analysis is one of the most used techniques of financial analysis. Financial ratios can be used to analyze trends and to compare the firms financials to those of other firms. Ratio analysis is used a tool for analyzing and interpreting the financial statements of EICL. Its financial performance is studied through the calculation of different financial ratios
24

30

such as liquidity, profitability, and solvency ratios. Financial ratios can be classified according to the information they provide.Following types of ratios are frequently used. (i) Liquidity ratios. (ii) Profitability ratios. (iii) Activity ratios a) Liquidity Ratios The importance of adequate liquidity in the sense of the ability of a firm to meet current/short-term obligations. Current Ratio It is the most common and popular measure of studying the liquidity of a firm. Quick Ratio
25

It is also called the Acid Test Ratio or Liquid Ratio. This ratio establishes the relationship between quick/liquid current assets and the current liabilities. Quick assets mean current asset including stock. The standard ratio is 2:1, but the EICL has maintained it at the ratio 1:1 this means the current assets are used properly during the study period. c) Profitability Ratios

Profitability is an indications of the efficiency with which the operations of the business are carried on. Poor operational performance may indicate poor sales and hence poor profits. A lower profitability may arise due to the lack of control over the expenses. Profitability ratios can be determined on the basis of either sales or investments. The profitability ratio in relation to sales is (a) profit margin (gross and net). (b) Expenses ratio or operating ratio. Profitability in relation to investments in measured by (a) return or assets, (b) return on capital employed, and (c) Return on shareholders equity. i) Profit Margin The profit margin, as a profitability ratio, measures the relationship between profit and sales. As the profit may be gross or net, there are two type of profit margin; Gross profit margin and Net profit margin. ii) Gross Profit Margin This is also known as gross margin. It is calculated by dividing gross profit by sales. iii) Net Profit Margin
26

This ratio is also known as profit margin. This measures the relationship between net profit and sales of a firm. iv) Return on Capital Employed The return on the capital employed is used as a measure of success of a business in realizing these objectives. This ratio is also known as Return on investment. It is an overall

profitability ratio. It indicates the percentage of return on the capital employed in the business and it can be used to show the efficiency of the business as a whole. d) Turnover Ratios The turnover ratios indicates the efficiency with which the capital employed is rotated in the business. The overall profitability of the business depends on two factors: The rate of return on capital employed, and The turnover, i.e., the speed at which the capital employed in the business rotates. Higher the rate of rotations, the greater will be the profitability. Turnover ratio indicates the number of times the capital has been rotated in the process of doing business. i) Fixed Assets Turnover Ratio This ratio indicates the extends to which the investments in fixed assets contribute towards sales. When compared with the previous period, it indicates whether the investments in fixed assets have been judicious or not. It is given by (Sles0/(Fixed Assts). ii) Debtors Turnover Ratio This ratio indicates the relationship between net credit sales and trade debtors. It shows the rate at which cash is generated by the turnover of debtors. It is computed as follows:
2.1.5 RESEARCH AND DEVELOPMENT DEPARTMENT 27

EICL has a well-equipped R&D center that is recognized by the Department of Science and Technology. It was started in 1992 with the view to provide technical advice to the customers and to offer technical assistance including testing services to other department of EICL. Its in-house research and development unit is known for stringent quality control and developing tailor made products for the customers requirements. The company has regular samples of various minerals taken at various stages of the production process to analyze complete mineralogical and chemical composition by their
HEAD OF THE

component team of R&D experts, enables them to recommend right products to the customers
DEPARTMENT

and develop customized minerals if required. Functions Develop new product

RESEARCH OFFCER ASSISTANT MANAGER R & D PAPER TECHNOLIGIST

Provide support to other departments Provide application support to customers

EXECUTIVE ECECUTIVE

Internal testing for each industry

Chart 8

RESEARCH CHIMIST

Organization structure of R & D

RESEARCH CHIMIST

28

RESEARCH CHEMIST

SKILLED WORKERS

SKILLED WORKERS

SKILLED WORKERS

New Product Development The R&D department has developed varieties of grades of clays of which the important are the following: Hydrous clay Surface treated clay Calcinated clay
29

Specialty clay

Process of Developing a New Product Collect the feedback from the customer visiting them personally. The feedback is about the needs of the customer needs of a product. Translate the needs into a product specification. Identify the various resources like the raw materials, technology etc. This is also

known as resources identification. Laboratory Sample preparation as per the specification Application test and if this is a success, pilot plant trial is made First a small sample is given to the customer and then bulk quantity is supplied. Plant trial at customer site.
QUALITY CONTROL In CHARGE [JUNIOR EXECUTIVE GRADE]

Future plan of Action

Commercialization of Specialty Clays in new industries. Development of delaminated clay. Optimization of super-gloss quality to replace importedSHIFT clay in paper coating CHEMIST
[JUNORSUPERVISOR GRADE] Develop cheaper and suitable process chemicals for reducing the cost of production
Chart 9

30 TECHNICAL 2.1.6 QUAITY CONTROL DEPARTMENT ASSISTANT [JUNIOR ASSISTANT GRADE]

Quality Control department chart

LAB ATTENDANT [WORKERS]

Quality is the most important factor, which decides the ultimate fate of the firm and so it has a very important role to perform in he organization. The Quality Control department in
31

EICL assures quality of its products till it reaches the hands of the customer. This adds to the companys reputation and goodwill. Quality control department takes samples from the plants to check the following properties:

 Functions

Quality Grit Brightness Moisture Viscosity, etc.

Checks the standard and quality of raw materials(clay) from mines and on its delivery.

Assure proper processes in the production of raw materials Checks the quality of finished product also. Quality of product and temperature of the plant will be checked in each hour of production.

Great care is taken to maintain quality during packing and dispatching. Quality of finished product is measured by taking 50g as sample from every 20n bags.

Objectives

32

Assurance of the quality of incoming raw materials. Assurance of quality at various stages of production process. Assurance of the quality of the end product and its packing

Quality Control Quality control starts from mining process. The matrix is checked whether it meets the stipulated quality. A sample from every load undergoes quarterisation process. The DGM-MARKETING matrix which does not meet the required standards is stored in stock yards. From stock yards it goes from production process. Quality is checked during the production process. Samples are taken at one hour interval and the quality is checked in the process control lab. If any fault comes CALCINED CLAY
HYDROUS EXPORTS

during the production process the quality control CLAY department suggests corrective measures. The end product also undergoes quality checks. After inspection the product go to silos for
MANAGER

packaging. EICL maintains quality till it reaches the customer.

MARKETING ASSISTANT MANAGER EXPOPRTS

Quality Certification

The company has been certified to ISO 9002:1994 since 1996 and has now been upgraded to ISO 9001:2000.
NORTH SOUTH WEST EAST SALES

2.1.7 MARKETING DEPARTMENT

ASSISTANT MANAGER MARKETTING

EXECUTIVE MARKETTING

EXECUTIVE SALES

Organization chart of Marketing33 Department

EXECUTIVE

SENIOR ASSISTANT

JUNIOR EXECUTIVE

JUNIOR ASSISTANT

JUNIOR SUPERVISO R SALES

Marketing Department
33

At EICL, the marketing department acts as a guide and lead the companys other departments in developing, producing, fulfilling, and servicing products and services for their customers. Communication is vital and the marketing department typically has a better understanding of the market and customer need. He goals and guidelines set by the marketing

department are in line with the vision and mission of the company. The top management is also involved in and endorses cooperation by all departments in following and implementing the plan and integrating a consistent message into all communication channels. At EICL there is a system of preparing the Material Complaint Repot (MCR). MCR is a report prepared by the marketing department which consists of customer complaints about the product. This will be circulated among all the departments to know what the complaint about the product was. After detecting the mistake, the complaint will be rectified with immediate effect. Functions Identify prospective customers Conduct market survey and market research Source orders and execute them as per delivery schedules agreed upon Service the existing customers-servicing involves Meeting customers schedules involves Keeping track of customers stores and purchase department Provide application support to customers in coordination with EICLR&D center and QC department. Attend and settle customer complaints
34

Analyze customer complaints and take preventive action against recurrence of similar complaints

Market research Marketing research is the systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation facing the company. At EICL, the head of department of marketing department conducts market research. Marketing department also maintains a good Market Information Systems. It uses internet for collecting information, interacting with customers, etc. The department goes in for product analysis and competition analysis. Product analysis is required to find out customers preferences for the product. Competition analysis is done to study the recent or proposed production, sales and pricing policies of the competitors. Agents Agents are appointed by EICL because it is not possible for the company to cater to the needs of all the customers who are situated at various cities which are far from their branches. After satisfying the conditions, the appointed agent enters into an agreement with the company which is signed both by agent as well as the Vice president and the marketing manager of the company. Agents are appointed as per the recommendation made by the branch office to the management. Criteria for appointment of an agent are the following: An agent should have a business in the potential area are in the particular industry. The person to be appointed as the agent should be financially strong
35

The agent should have sufficient technical knowledge to deal with the customer problems.

The agent should have sufficient market as well as office infrastructure like fax, Telephone, warehouse etc.

The person who is appointed as agent should have good contacts in the industry.

Element of Marketing Mix a) Product Marketing department ensure that the product is of the same grade as specified by the customers. Currently, 35 grades of clay are available, each with 2 main specificationsbrightness and fineness content from 60-100 percent. b) Price The prices are based on what is affordable in the market. The pricing decisions are taken by the marketing department after studying the market conditions and also comparing the competitors price. c) Place The department bags orders from the customers and delivers finished produces on time. Two major Indian ports of Cochin & Tuticorin are 200km from the works. Frequent connections to all the major ports in the word are available from these ports. Promotion Since the company goes for Industrial marketing, the marketing department concentrates on direct marketing as a means of promotion. It ensures that the company is well represented in all seminars and trade exhibitions related with the industry. This includes
36

sponsoring 1-day programs, distribution of pamphlets, introduction of new products at conferences etc. EICL has marketing offices in Mumbai and Delhi and has marketing agents in Mauritius, South Africa, GCC, Yemen, Sri Lanka, Indonesia, Philippines, Jordan and New Zealand. e)Packaging Packaging is done in laminated High Density Poly Ethylene (HDPE) bags. ECIL products are generally packed in 50kg HDPE or Jumbo bags. They are also packed in 75kg or 60 kg bags as per the requirements of the customer
2.1.8 MAINTANANCE DEPARTMENT Chart 10

Organisation Structure Department HOD Sr. Manager Operation Manager Engineer Assistant Manager Executive Staff Maintenance department is a service department. The maintenance Workers department is responsible for the maintenance and modification of machinery. The main duty of
37

the department is to ensure that all the machines are available in proper working condition

throughout the year there by ensuring high quality production. The department has to align the machines in a proper way and has to inspect them daily before the work starts and even during the work. Maintenance department does maintenance for lot of equipments. The main

equipments that come under the maintenance perspective are: Centrifugal pumps for transferring the clay slurry Screens to remove oversized particles Filter presses for the removal of water Dryers for drying

2.1.9 PROJECT DEPARTMENT

The project department in EICL was started in the year 2001. The department is headed by a chief project manager who directly reports to the COO. The rest of the staff in the department has been on deputation from other departments. They have successfully accomplished the following tasks. 1. Commissioning of a water treatment plant 2. Duplication of the rotary drier 3. Commissioning of calcined clay plant at Thonnakkal 4. Implementation of a sand treatment plant

38

Chart 11

Chart of project department

SENIOR MANAGER PROJECTS

ASSISTANT MANGER CIVIL

ASSISTANT MANAGER PROJECTS

CIVIL ENGINEER ON CONTRACT

PROJECT ENGINEER ON CONTRACT

CIVIL SUPERVISOR ON CONTRACT

] Functions 1. Planning and budgeting of the projects 2. Control finalization

ELECTRICAL SUPERVISOR ON CONTRACT

Overall coordination and monitoring of projects 3. Assuring quality of the equipments 4. Getting sanctions from the government

39

CHAPTER III

PRODUCT PROFILE 3.1 PRODUCT PROFILE Table : 5 List of products

Type Very Fine Coating Clays Fine Coating Clays Normal Coating/Paint Grade Clays Coating/Filler Grades Rubber Grades Fiberglass Grades Very Fine Calcined Clays Fine Cacined Clays

Grade Super coat Hi gloss BCK KCG Paper Paper

Industry

Paint/paper/printing Ink Paper/Rubber

KCG (Spray dried) Rubber Fiberlin Himafine Himacot Fiber glass Fiber glass/ Coating/paint/printer Inks Fiber glass/Rubber/Soaps Paper Coating/paint/printer Inks Paint/Ready Mix Compounding Ready Mix Cement/Ultramarine Concrete/PVC Concrete paper

Normal Coating/paint Grade Calcined Himatex Clay Coarse Calcined Clay Cement Grade Calcined Clay Himapol Himacem Himablue

40

3.2 MARKET POTENTIAL

Market demands sometimes impact the kaolin industry adversely. For example, the majority of paper manufacturers use high speed blade coaters. To improve the efficiency and throughout rates of these machines, as manufacturers are constantly seeking to increase operating speeds. This places a demand on the kaolin industry to provide kaolin products with rheological properties compatible with higher machine speeds. Since there is no technology for lowering the viscosity of kaolin , archeology can only be improved by blending ores, which has its economic and inherent limitations. Controlling rheological properties by blending crude ores or finished products is costly because it requires additional systems, labor and energy. In addition, the producer must operate and maintain more than one mine. Businesses that sell into highly competitive markets, where profits are constantly squeezed, do not generally produce technological innovations although still suffering from low margins and thin profits, kaolin producers have been innovative, gaining better control of their costs and improving product quality while creatively responding to market demands with high brightness products. They have developed technologies for the production of affordably priced high quality products and are taking long term optimistic view of the market place.
INTERPRETATION

The Gross profit ratio shows a decreasing tendency it started with 34.75% in 2002 and ends at 23.02% in 2006. From the annual statement it is clear that the gross profit and the net sales has increased but the gross profit ratio has decreased this in due to increase in cost of goods sold without any increase in Selling Price. The Net profit ratio shows a steady increase from 6.23% in 2002 to9% in 2005 this is due to the increase in net profit and sales due to high demand of the product by producing
41

high quality product. In EICL, the profit margin is low but EICL has a higher rate of return on investments due to higher inventory turnover. From the table it is clear that the Return on Capital Employed has increased from 21.14% in2002 to 24.57% in 2006. This shows that the management is more efficient in using the funds available. Interpretation In ECIL, the collection period is 45 days; it implies that debts are collected in 45 dat. Thus it is indicative of the efficiency of trade credit management. In EICL the turnover ratio is higher and the average collection period is shorter, this means the better credit management and the better the liquidity of debtors. In EICL, the stock kept at very low during the study period. Not only the stock holing has below, the Inventory Turnover Ratios have also been very low (ie. Not more than 30-35 days over the year), indicate that EICL is in a position to sell the finished goods as quick as possible because of high demand for the product. The company as a whole registered a sales growth of 5 present with a turnover of Rs.148.58 crore. This is primarily on account to dividend income. During the current financial year the company made strategic investment in the equity shares of Crompton Greaves Ltd with the approval of Securities and Exchange Board of India. This segment earned revenue of Rs.208.38 lacks during 2004-05 as against Rs.28.83 lacks in the previous year.

42

CHAPTER IV

4.1 SWOT ANALYSIS

SWOT stands for strength ,Weaknesses, Opportunities and Threats of an organization.

The basic assumption of a SWOT analysis is that organization Must align Internal activates With realities to be successful . SWOT analysis calls for Matching of capabilities and of compact the threats to the business Strength and Weaknesses are essentially internal to the organization and relate to matters concerning resources and programmes within the company whereas and Threats are external factors confronting a company such as new technologies , comtition etc. The four factors can be described as follows Strength Weakness : : What an organization can do What an organization cannot do Potential favorable condition for an organization Potential unfavorable conditions for an organizationHere an attempt has been that have a positive and negative influence on the Opportunities

Opportunities : Threats :

made to assimilate the various Factors

performance of EICL. The strengths, Weaknesses , opportunities and threats of the company are summarized as follows

Table : 8 Swot summary 43of EICL STRENGTHS An experience of about 40 years Availability of rich mineral resource Experiences and expertise of workforce No waste products Loyal workforce Cordial relationship betweenWorkers and office staff. WEAKNESSES Presence of 7 trade unions the The Website of the company Gives a vague idea regarding The information of EICL. They have to keep large inventorie Because of the lack of supporting Industries. THREATS Raw material availability last only For 25 years (Assumption) Innovation or entry of any Alternative material to china clay Entry of foreign competitors . Societal criticism blaming pollution Company

OPPORTUNITIES Very few competitors. Expansion of the market of the sand New product development . Export potential of the company.

[Annual report of EICL]

44

CHAPTER V

SUMMARY AND CONCLUTION

SUMMARY EICL focuses on specific industry requirements to develop suitable grade of products and provides application support to customers to achieve best result s from its products .It can be more explained through the findings , suggestions of EICL . They are as follows ; 5.I FINDINGS English Indian clays ltd is one the major manufactures of china clay EICL enjoys 80 percent market share in India In EICL ,all the ratios shows the healthy note ,ie ., the study period .The current ratio , Quick ratio Was in a better position and at the standard level. Good service provided for the customers.

5.2 SUGGESTIONS New areas for application of china clay to be found out The company should give due care to environmental and societal concerns The company should start e-business. website of the company needs to be updated with relevant details .about the company

The company should develop new strategies for to attract more customers

5.3CONCLUTION
45

The organization study conducted at EICL enabled me to get hand-on experience of the overall functioning of the company and to translate academic knowledge into practical experience. The visits to various departments were very informative and added to my awareness about the organizational atmosphere. Face to face interviews with EICL officials helped to understand the vital role played by each department and their functioning. The clay industries are very important in providing needed employment in many areas. As a clay mining, manufacturing, and processing unit, the companys ability to sustain a steady and time bound supply schedule coupled with its constant striving for excellence has given it that extra edge over all its competitors in the field. With its rich reserves, hi-technology, vast experience of its motivated employees and deep commitment to quality, EICL is all set to take a place of pride in the twenty first century as the preferred sources for the best companies in the business.

46