CHAPTER 1

INTRODUCTION TO CEMENT INDUSTRY

The ancient Romans developed cement and concrete similar
to the kinds used today. They manufactured cement by mixing
slaked lime (lime with water) with a volcanic ash called
Pozzuolana. People lost the art of making cement after the fall
of Roman Empire in AD 400s. In 1759, John Sneaton , a
British Engineer found how to make hydraulic cements by
using blue lime with clay content and Pozzuolana from Italy. I.
C. Johnson produced Portland cement in 1845. Portland cement
contains about 60% lime, silica and 5% alumina. Iron oxide and
Gypsum make up the rest of the materials. In the plant the
materials go through a chemical process that consists of three
basic steps namely crushing, grinding, burning and finish
grinding. Cement was developed by Joseph Asp Din of
England. He manufactured commercially the improved quality
of Portland cement in a country market kiln in the year 1848.
Cement produced on 21st October 1854 was patented as
Portland cement.
Cement Industry in India has made significant
contribution to the countrys economic development. This
is obvious because most of the development activities of
the country involve construction works using cement.
South Indian Industry Limited installed the first cement
industry in Tamil Nadu in 1904 and then onwards number
of factories manufacturing cement was started. In our
country there are 51 companies and 99 plants having
installed capacity of manufacturing 700million KN of
cement and with this installed capacity, the Indian cement
Industry is the largest in the world.
Industrial era in Kerala had its beginning from the time
of Sir C.P Ramaswamy Iyer, Diwan of Travancore State
during the pre-independence period. He knew that the
cement is one of the basis industrial needs for the speedy
industrialization of the state and felt it is very essential for
the state to have at least one cement factory. But lime stone
deposits of the required quality were not available to start
a cement plant factory in Travancore. However, lime shells
available in the backwaters offered in alternative of course
a better source for calcium raw material. Sir C.P
Ramaswamy Iyer induced the promoters of TCL for
pulling up cement plant based on the lime shell reserve.
Thus the first cement plant starts its operation on
7.12.1946 in Kerala.

White Portland Cement or White Ordinary Portland
Cement (WOPC) is similar to ordinary, gray Portland cement
in all respects except for its high degree of whiteness.
Obtaining this color requires substantial modification to the
method of manufacture, and because of this, it is somewhat
expensive than the gray product. White Portland cement is
used in combination with white aggregates to produce white
concrete for prestige construction projects and decorative
work. White concrete usually take the form of pre-cast
cladding panels, since it is uneconomic to use white cement
for structural purposes. White cement is also used in
combination with inorganic pigments to produce brightly
colored concretes and mortars. With white cement, bright
reds, yellows and green can be readily produced. The
whiteness of WOPC is measured as the powdered material
having a reflectance value ("L value) in excess of 85%.
Cement industry in India has made significant contribution
to country's economic development. This is because most
of the development activities involve construction works,
which makes use of cement. It is an indigenous industry
with local raw materials.
In 1904, the first cement industry was started. It was in
Tamil Nadu. Since then, a number of factories
manufacturing cement were started.
In our country there are 51 companies and 99 plants
having installed capacity of manufacturing 700 million KN
of cement. With this capacity, the Indian cement industry
is the fifth largest in the world after China, Russia, Japan
and USA. Indian cement industry accounts for about 4 %
of the world's production.
The origins of Indian cement industry can be traced
back to 1914 when the first unit was set-no at Porbandar
with a capacity of 1000 tonnes. Today cement industry
comprises of 125 large cement plants and more than 300
mini cement plants. The Cement Corporation of India,
which is a Central Public Sector Undertaking, has 10 units.
There are 10 large cement plants owned by various state
governments. Cement industry in India has also made
tremendous strides in technological up gradation and
assimilation of latest technology. Presently, 93 percent of
total capacity in industry is based on modern and
environment-friendly dry process technology. The
induction of advanced technology has helped the industry
immensely to conserve energy and fuel and to save
materials substantially.
Indian cement industry has also acquired technical
capability to produce different types of cement like
ordinary Portland cement(OPC), Portland pozzolana
cement(PPC), Portland Blast Furnace Slag Cement(PBFS),
Oil Weil Cement, Rapid Hardening Portland Cement,
Sulphate Resisting Portland Cement, White cement etc.

1.1 CEMENT INDUSTRY IN INDIA
Cement industry in India is currently going through a
consolidation phase. Some examples of consolidation in
the Indian cement industry are; Gujarat Ambuja taking a
stake of 14 percent in ACC, and taking over DLF cement
and Modi Cement: ACC taking over IDCOL: India
Cement taking over, Rasi Cement and Sri Vishnu Cement;
and Grasim's acquisition of the cement business of L&T,
Indian Rayon's cement division, and Sri Digvijay Cements.
Foreign Cement companies are also picking up stakes in
large Indian cement companies. Swiss cement major
Holcim has picking up 14.8 percent of the promoters'
stake in Gujarat Ambuja cements (GACL). Holcim's
acquisition has led to the emergence of two major groups
in the Indian cement industry, the Holcim-ACC-Gujarat
Ambuja Cements combine and the Aditya Birla group
through Grasim industries and Ultra Tech Cement.

1.2 ISSUES CONCERNING CEMENT INDUSTRY
High transportation cost is affecting the
competitiveness of the cement industry. Freight
accounts for 17% of the production cost. Road is
the preferred mode for transportation for distances
less than 250 km. However, industry is heavily
dependent on roads for longer distances too as the
railway infrastructure is not adequate.
Cement industry is highly capital intensive
industry and nearly 55-60% of the inputs are
controlled by government.
There is regional imbalance in the distribution of
cement industry. Limestone availability in
pockets has led to uneven capacity additions.
Coal availability and quality is also affecting the
production.

1.3 OUTLOOK
Outlook for the cement industry looks quite bright. Given
the sustained growth in the real estate sector, the
governments emphasis on infrastructure and increased
global demand, it looks as if the juggernaut of cement
industry would continue to roll on the path of growth.













CHAPTER 2

DESIGN OF STUDY
----------- The main objective of the industrial training is
listed below. The study about the organization helps me to
understand the working of the organization and also
various processes taking place in the company, difficulties
faced by the company etc. The problems faced by the
company are carefully studied and various solutions are
put forward for effective and efficient performance.

2.1 OBJECTIVE
To understand the functioning of organization as a
whole.
To study the organizational structure..
To Study Various Department Of The Organization
And Their Function.
To Know The Organizational Objectives And Scope
SWOT Analysis
Case study Generation.



2.2 SCOPE OF STUDY
The scope of the study conducted includes the study
of aims of the company, various departments and their
functions, various products and their production activities,
quality control procedures taken by the company and the
work culture of the organization. The study of the various
departments would help in improvement their overall
efficiency, by way of identifying deficiencies.

2.3 METHODOLOGY
This study was conducted by visiting the head office
of Travancore Cements Limited at Kottayam
from December 2012 to February 2013. The information
and data were collected by interacting with the managers,
officers and workers and also made interviews.
The further details about the production were taken
by the direct observation of the plant process. Also some
of the datas regarding the past performance of the
organization were collected by referring the annual report
of the company. This training help me to understand
functions various departments, various products and their
production activities, quality control procedures taken by
the company and the work culture of the organization.



2.4 LIMITATIONS OF STUDY

The staffs are constrained by time due to their
tight work schedule.
As data are collected through interviews, the
information is subject to the bias of the
individuals.
Difficult to get some details because of its
confidentiality.
Covering the entire area of each department is
difficult within a limited time period.















CHAPTER 3

COMPANY PROFILE

The Travancore Cements Limited was incorporated in
the year 1946. The year of commencement of grey cement is
1949. The licensed capacity of the plant is 50,800 tonnes per
annum. The master mind behind setting up of this factory
was Late Sir. CP Ramaswami Iyer, who was then Dewan of
Travancore, and he realized the vital role of cement in the
industrial development of Kerala. The company was made
with M/s F.L Smidth & Co, Denmark. During 1959, the
company diversified into the production of white Portland
cement. The capacity for the production of white cement is
30,000 tonnes per annum. Till 1974.the company was
manufacturing both white and grey cement in the same plant,
disturbing the production of two over certain period in the
year. Since 1974, the company started manufacturing white
cement alone, as the demand for white cement went up.
During the last 58 years off its existence, TCL has
diversified its activities into related areas. Besides Super
Shelcem brand cement paint, the company has added to its
product range namely the Sheltex Acrylic Emulsion paint
and Shell prime cement primer.
The Travancore Cements Limited is the only
manufacturer, perhaps in the whole world, producing white
cement from a raw material other than conventional lime
stone. The main raw material of TCL is the lime shell, which
is dredged out of Vembanad Lake, one of the back waters in
Kerala. The company has successfully executed a
diversification project for manufacturing grey cement during
the year 2000, with a capacity of 66,000 NIT per annum.

3.1 MILE STONE IN THE HISTORY OF TCL

Started production of Grey Cement in August 1949.
Started production White Cement in 1959.
Grey Cement production stopped in 1976.
Diversified into Cement Paint production in 1977.
Became a Government Company in April 1989.
Dry Cement Primer 'Shelprime' production started in
January 2000.
Acrylic Emulsion Paint for exterior &Interior.
Sheltex launched in April 2000.
Started production of 'Vembanad' 43 grade OPC in
September 2000.
Launched Vembanad Wall care putty in 2008.
ISO 9001:2000 certifications received for the
Company during December 2003.


3.2 VISION AND MISSION

3.2.1 VISION STATEMENT
To be a leader in the Indian Cement industry and
providing customer delight and enhancing shareholders
value.

3.2.2 MISSION STATEMENT
Having a unique role in the Heavy Industry sector of
the country, TCL is committed for catering the society
towards the specific need expected by producing quality
product at a customer friendly price while keeping
sustained growth of the organization and total growth of
the society.
To enhance the companys shareholder value.
Employee satisfaction.
Revenue growth.
Strength supply chain management.
High volume, high market share, cost
effectiveness in all segments.





3.3 PRODUCT PROFILE
The company is producing three types of products. They
are,
White Portland Cement under the brand
name VEMBANAD.
Cement paints under the brand name
SUPER SHELSEM in 42 different
shades.
Wall putty under the brand name
VEMBANAD


3.3.1 VEMBANAD WHITE PORTLAND CEMENT

It is having first place in Indian white cement market,
by its excellent quality. As compared to other brands it
accounts for its superior whiteness and maintain its quality
by using lime shells instead of lime stone. The white
cement is the best suited for housing and construction of
industries. Vembanad White Cement is quick drying,
process high strength and superior aesthetic values. Also it
is good for floor finish, plaster and ornamental works. The
miscellaneous application of white cement are in
swimming pools, where it replaces the use of glazed tiles
with coloured shades under water, for molding sculptures
and statues, for painting furnitures. It is also used for
ready mixed concrete, precast blocks and to fix marbles
and glazed tiles.

Special Features
Lowest magnetic content and hence most durable
white cement.
Brilliant whiteness.
High strength.
Super soundness.
Super finishing.
Excellent properties.
Ideal for manufacturing cement paints, mosaic
tiles etc.
Applications
Pointing brick works.
Road marking.
Cast stone finish.
External rendering.
Mosaic tiles.
Terrazzo flooring.




3.3.2 SUPER SHELCEM CEMENT PAINT

In 1977 TCL started manufacturing cement paints
under the brand name SHELCEM. It was rebranded as
SUPER SHELCEM in 1986. Super Shelcem is a unique
technology formulation with the most durable
VEMBANAD white cement.It is an intimate mixture of
Vembanad white cement, water proofing fungicides, oxide
extends, non fading oxide pigments and hardening agents.
Cement paint is water biased paint widely used for
painting buildings. Unlike other cement paints, Super
Shelcem doesnt require water curing after first and second
coat. Only initial wetting of the surface is necessary. This
makes it ideal for exteriors of multi storied buildings and
sky scrapers. Also it is ideal for interiors since, tedious
curing after removing furniture can be avoided which
means saving of labour.
Once a wall is painted with Super Shelcem, it looks
and stays good for years unaffected by weather and fungal
attack. Super Shelcem carries ISI marks and the approval
of Bureau of Indian Standards, is E-1969. It is available in
a wide range of colours of total 42 different shades in the
market.


Special Features
Capacity: Any previous deep shade made on the surface
can be effectively hidden with a single coat of Super
Shelcem. The second coat completely covers the dark
patches and stains on the wall.
Coverage: Super Shelcem covers greater area than any
other cement paint. 1Kg covers 100 sq feet for a single
coat or 65 sq feet for two coats.
Adhesion: Super Shelcem can be applied on a wide
variety of surface like cement plaster, concrete, brick
work and plastered surface.
Drying: Super Shelcem dries very quickly. While other
cements paints requires 16 to 24 hours waiting time for
applying the second coat, Super Shelcem need only 3 to
6 hours after the first coat.
Production Of Super Shelcem
The main raw material for the production of cement
paint, i.e. lime shells is dredged from Vembanad Lake by
the company themselves. Lime Shell, rich white clay,
white silica sand is used for the production of white
cement. The white cement is mixed with hydrated lime,
colouring pigments, and fine sand and water repellent
compound in a separate mill to get the cement paint of
desired colour.A premium quality cement paint, always
consistent and of international standards.

3.3.3 VEMBANAD WALL PUTTY
Vembanad Wall Putty was introduced in the year
2008. It is dry powder putty with Vembanad White
Cement as the base. By the low content of MgO in
Vembanad White Cement, the putty when applied on the
cement plastered wall and ceiling will ensure durability,
extra coverage and smooth finish. Vembanad Wall Putty
can be applied on freshly plastered surface also. Like other
products of TCL, Vembanad Wall Putty is also excellent
in quality.
Before applying wall putty, one or two coats of Vembanad
White Cement is recommended to be applied on the newly
plastered wall.


3. 4 QUALITY CONTROL POLICY

TCL has implemented the Quality Management
system and best quality throughout the production process.
The raw materials are taken by checking its quality and
after each and every production process they are testing
the quality of sample in the laboratory. Thus customers are
well satisfied with the products.


3.6 SIZE
Total employee strength of TCL is 468. The
employees of the company are classified into 3 categories.
They are:
i. Officers
ii. Staff
iii. Workers.

3.7 ORGANIZATIONAL CHART
The Board of Directors consists of five persons of
which one is full time Managing Director. Under the
Managing Director we have: Marketing Manager,
Production Manager, Maintenance Manager, Financial
Manager and Secretary. The Maintenance Manager is
responsible for departments of dredger, civil and sanitary,
water and general transport, workshop and electrical. The
production manager is responsible for the departments of
white cement plant, kiln, packing house, lab and quality
control. The Marketing manager is responsible for the
departments of marketing control, purchase etc. The
finance manager is responsible for the departments of
accounts. Finally the secretary is responsible for the time
office, personnel department, medical department, and
office and guest house.














BOARD OF DIRECTORS
MANAGING DIRECTOR
GENERAL MANAGER
CHAIRMAN
FINANCE
MANAGER
MANAGER
PRODUCTION
MANAGER
MAINTENANCE
MANAGER
COMPANY
SECRETARY
MARKETING
MANAGER
ACCOUNTS
OFFICER
AASADXAAAA
AAAACCOUNT
S OFFICER
MAINTENANCE
ENGINEER
DEPUTY
MAINTENANCE
MANAGER
PERSONNEL
MANAGER
MARKETING
SUPERINDENT
MANAGER
STAFF JOINT
MANAGER
STORE
SUPERINDENT
STAFF STAFF
FOREMAN &
WORKERS
STAFF





CHART 3.1 Organisational Chart



CHAPTER 4
DEPARTMENTAL STUDY

In TCL there are 12 departments to improve
efficiency and effectiveness in the performance and to
attain the organizational goals set by the company.
Departmentalization is done to logically connect the work
activities. Coordination of various departments is required
for the success of the company. The various departments
of TCL are listed below.
1. Mechanical Department
i) Production department
ii)Workshop department
2. Personnel Department
3. Finance Department
4. Marketing Department
5. Purchase Department
6. General Stores Department
7. Transportation Department
8. Dredging Department
9. Material Handling Department
10. Electrical Department
11. Laboratory Department
12. Packing House
Workshop department

The company has workshop department under
mechanical department. The maintenance and repairing of
machinery spare parts, pipe line, oil line, vehicle etc. are
undertaken in the workshop. Fitter, Automobile section,
Diesel mechanic section, Welder, Turner, Blacksmith,
Carpenter, Khalasis, Tool section are the nine different
sections in this department. Dredger and barge is also
repaired in this department. If any fault occurs in the
running plant, workers from this department will be sent
there. There are 80 employees working in different
sections of the workshop as welders, fitters, blacksmith,
carpenter etc.













CHAPTER 5

SWOT ANALYSIS AND CASE STUDY

5.1 SWOT ANALYSIS
5.1.1 STRENGTH

As TCL is a government owned firm, it enjoys all
the privilege granted by the government.
The standard quality of the product is the great
strength.
Good organizational climate also adds to the
strength of TCL.
Efficient quality control department is strength of
TCL.
Employees are maintaining good relation with each
other.
TCL experience good co-operation from various
trade unions present here.

5.1.2 WEAKNESS

Excess manpower is the major weakness of the
company. Wastage of money through the payment
of salary and other things to this excess supply of
manpower.
Lack of modern technology is another weakness of
the company. They are still using the out dated
machinery and technology. The technology now
followed by them is 24yrs old.
Higher cost of the products compared to the
competitors product.
Unnecessary formalities cause a delay in business
decisions.
Lack of raw materials cause problems in production
process.
Lesser chance of promotion for employees.


5.1.3 OPPORTUNITY

The budget amount should be used wisely so as to
get maximum visibility for the product.
Company introduces promotional programs.
It should expand the distribution network to that
place where the product is less available.
It should switch on to newer technologies in order to
reduce its cost of production.
Exporting and expanding to north Indian markets can
be considered once it increases production.

5.1.4 THREAT

Scarcity of raw materials is the major threat faced by
the company.
Out dated techniques are still following.
Increase in labour cost is another threat.
Government policies towards sales tax and other tax
is changing every time.
Customers requirement are changing day to day. It
is another threat to the company.
Good replacement facility of other brands is also a
threat.











5.2 CASE STUDY

5.2.1 INTRODUCTION

From SWOT analysis and discussions it is clear that the
market share of TCL is going down. . So my case is to
identify the reason for lower market share. The title of my
case study is ROOT CAUSE ANALYSIS OF LOSS
OF MARKET SHARE.

TCL is the only company in India which is producing
white cement from lime shell. The main raw material for
the production of Vembanad White Cement is lime shell,
an underwater deposit in Vembanad lake, is dredged and
brought to the company by means of power barges. The
company has two dredgers, one hydraulic dredger named
Lokanathan of 5000 gallons capacity and one mechanical
dredger, dredger of 2000 gallons capacity. The dredger can
cut the lime shell around 40 ft. maximum depth. Since
lime shell is a natural resource special care is needed for
the availability. From the data collected it is clearly
understand that the production of white cement is
decreasing per year.



5.2.2 SCOPE
The main purpose of the study is
To identify the root causes of loss in market share.
To make the suggestions for better performance.

5.2.3 METHODOLOGY
After detailed study about the organization and the process
the first step for case study is data collection and analysis.
Second step is problem identification. And third step is to
make suggestions to overcome the problem. The data
collected for the case study is given below.
D) PRODUCT
In TCL lime shell is used because it is the
purest source of calcium carbonate and best suited for
white cement manufacturing. In TCL they are following
wet process, though expensive, is retained to ensure
quality. They do not do any compromise for quality so
special analysis is taken to overcome the difficulty of raw
material availability. Lime shell is dredged out from
Vembanad Lake. Due to the opposition from the public
and fishermen dredging finds to be difficult. So they
import clinker from Egypt in order to overcome the
difficulty in the availability of raw material. Quality
department of TCL checks the quality of imported clinker
and it is almost meeting the level.

CHAPTER 6

FINDINGS, RECOMMENDATIONS AND
CONCLUSION

6.1 FINDINGS
Obsolete technology is a main aspect which needs to
be sorted out.
There is dependence on Contract workers which
affect the performance of the company.
Price of raw material and furnace oil which is used in
Rotary kiln is high.
Absence of proper promotional activities affect the
company very much.
There is reduction in the production of white cement
year by year.
Lack of availability of raw materials and lack of
diversification are areas of concern.
Absenteeism of workers are areas of concern.

6.2 RECOMMENDATIONS
The company should be able to provide Promotional
offers, Availability, Credit facility, Margin,
Discount, Sales support to the customers.
Dealers are attracted by the profit margin, provided
from product. The company should concentrate on
introducing new varieties of promotional offers and
schemes to attract dealers like having better credit
facilities, discounts etc.
The company can provide incentives to the sub
dealers for the work they are doing.
Television has become an alternative source of
awareness among consumers, so more
advertisements should be done through those visual
media. This could improve sales as there are many
other competing brands with lower price in the
market.
More sales support should be given to the dealers.
They need to inform well about different types of
products, features and the company as a whole so
that targets can be achieved in a mutual way.
More concentration should be given on improving
dealer relationship. Extra incentives can be provided
as a sales promotional strategy to further boost the
companys sales.
The dealers who have stopped dealing with
Vembanad must be brought back for brand
penetration in the market.
The company can focus on improving product sales
outside the state as well.
Availability can be improved as some dealers have
been facing low supply of goods. This would
strengthen dealer relations.
Better strategies have to be developed for making
pricing decisions as it could improve profit margin of
the dealers. This would ultimately improve sales
performance and dealers would be enthusiastic in
selling the product.
Concentrate on rural areas where the competitor
brands are weak.
Expand the market to a national level by supplying
the product to other parts of India. This will increase
the sales, and the company can reach economies of
production. This results in the reduction of unit cost
of production.
Switch to other raw materials such as lime stone, for
production of cement, and adopt new technology for
production.
Motivate dealers through some sales contests, and
reward those dealers who are performing well.
Improve packing of 50 kg bag.
Provide more incentives and credit facilities to the
dealers for the improvement of market share.
The company shall use improved advertising
technology to make consumers aware of product and
thus increasing the sales.
The company shall take necessary steps to improve
their brand image.
The company shall make appropriate measures to
produce high quality white cement at low cost thus
reducing the overall price of the white cement.


6.3 CONCLUSION

During the 15 days of training undergone at
Travancore Cements Limited Nattakom, Kottayam an
opportunity was created to have a thorough exposure to the
management function of departments involved in the
working and management of a cement industry. It was also
offered a platform to learn about engineering activities
such as dredging, working of various mills, rotary kiln,
packing machineries etc to its core during this period. TCL
is the only company in India to produce white cement
from lime shell. With the adoption of latest technologies
the company can fly to new heights of excellence.
Adoption of an alternate fuel for furnace oil can decrease
the production cost. Improving the marketing strategies
and solving the existing problems, the company is ensured
of bright prospects.




REFERENCES


1. Company Brochures and Manuals.

2. www.travcement.com.

3. www.cementsindia.com.