CHAPTER 1 INTRODUCTION

INTRODUCTION The organizational study is limited to acquire the knowledge regarding the function as well as the managerial aspects of THE TRAVANCORE COCHIN CHEMICALS LIMITED ,UDYOGAMANDEL,KERALA. Organizational study is the systematic study and careful application of knowledge about how the people as individuals and as groups act within an organization. An organizational study encompasses the study of organizations from multiple view point methods, and levels of analysis. Whenever people interact in an organization many factors come into play. like all modernist social sciences organizational studies seek to control predict and explain. The organizational study was done as partial fulfillment of the requirement for the award of Master of Business Administration(MBA). The chief objective of the study id to understand the working of various department functions during a particular period and the concept of organization.

1.1 SCOPE OF STUDY The study was limited to Travancore-Cochin Chemicals Limited.,Udyogamandal. The study was to get a general awareness of the function of the various departments and management of TCC Ltd. The period available for the study was limited .There are many departments like marketing, materials, finance, operations and technical services Etc. the attaining of information about different departments helped to analyze the strengths , weakness ,opportunities and threats of the company.

1.2 OBJECTIVES OF THE STUDY The objective of the organization study includes the following: To understand the organizational structure and the working of the various functional departments. To have an exposure to the work environment. To understand the overall performance of the company. To make an analysis of the organizations performance. To study the relevance of TCC on chemical industry field in Kerala.

1.3 SIGNIFICANCE OF THE STUDY

The main significance of the study are; The study attempt to understand the performance of different departments. To understand the quality assurance of the organization. To understand financial position of the organization. Getting an organizational exposure. To understand the market position of the organization.

1.4 METHODOLOGY

It is an overall operation framework, which help to collect the required data. The methodology used in the study involves the collection data through primary and secondary means within the given time period. PRIMARY DATA It refers to the first data collected from primary sources .The primary sources of data collection were direct personal interview with managers of concerned department,official staff and workers of the company. SECONDAY DATA Data which are not originally collected but rather obtained from published or unpublished sources includes: 1. Company records 2. Annual records 3. Official sites of the company 4. Internet The collected primary data and secondary data were used in the preparation of this organizational report.

1.5 PRINCIPLES OF ORGANIZATION

Principles means the theoretical basis on which something is built up.The theoretical basis is formulated from fundamental truth. Some of the important principles to be followed for developing efficient organization are: Principles of unity of objective Principles of specification Principles of coordination Principles of unity of command Principles of span of control Principles of exception Principles of flexibility Principles of simplicity Principles of communication Principles of efficiency

1.6 REQUISITES OF A GOOD ORGANISATION

The organizations are born out of a necessity for clear well defined system or structure, which people require for execution of their responsibilities. It helps them to relate to each other,coordinate their activities and achieve the organizational goals . it minimizes confusion natures suitable and maximizes effectiveness. For proper function of the organization certain requisites are to be fulfilled .They are as follows. The objectives are to be clear, candid and well defined and the organization must have a capacity to achieve it. All activities therein must be properly coordinated. Organization must be complete, it should include all essential activities. The communication system within the organization must be effective. The span of controls at all levels must be reasonable. There should be a provision for future expansion. All activities and functions should follow strict procedures. There should be proper diversion of authority and responsibility.

1.7 LIMITATIONS OF STUDY The limitations of the study are the following: TCC is a large chemical industry; as such accurate data regarding the internal affairs of the company are not easily available. The available data is not sufficient to get the desired result. As a vast coverage is needed for getting the desired results time is a limiting offer.
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CHAPTER 2 PROFILES

2.1 INDUSTRY PROFILE INTERNATIONAL SCENARIO The world chlor-alkali industry is growing .The chemical industries are growing faster in the world. The chemical industry plays a vital role in the production of many manufacturing goods. The industry provides a tremendous variety of materials to other manufacturers. Major products of the industry include detergent, drugs, fertilizers, food preservatives, flavoring and paper , fine chemicals etc. Most major chemicals are basic chemicals used in many countries .It is used to produce fertilizer and other chemicals other basic chemicals include chlorine and sodium hypochlorite. The production has become increasingly concentrated in multinational corporations which have plants and offices in a number of countries. To achieve low cost of production, the companies locate their factories in developing countries where raw materials are readily available. Many basic chemicals are produces in developing countries by factories of multinational firm. But chemicals requiring advanced production methods are made in industrialized countries. In international scene, increased scene, increased production of papers, aluminum, soap and detergent naturally leads to increased requirement of caustic soda. In the world scenario, the Green Peace Movement was seeking the phase out of chlorine usage, especially the CFC compounds. This has resulted in closing down in Europe and restricted the production in North American Plants. With the drop in international production, the International price of caustic soda was steadily rising. The caustic which was sold for a more 50$ per tones has gone up to 300$ per tones. The international market operates in the context of demand supply prevailing from time to time, situation of surplus and shortage are cyclical as a result of which international prices is common and drop in import duty often by steep drop in price of the chemical. Though the demand for chlorine is growing fast the demand of caustic soda is not so promising. Hence the units in the gulf and western countries are selling caustic soda at a cheaper rate.

MAJOR COUNTRIES PRODUCING CAUSTIC SODA - USA - RUSSIA - INDIA - CANADA - FRANCE - CHINA - GERMANY - JAPAN

INDIAN SCENARIO In India, caustic soda is produced by electrolysis process. The manufacture of caustic soda started during 1940 in the country. The growth was rather slow during the 1960s and after the growth picked up substantially .Today there are about 38 chlora alkali units in India.

MAJOR SOUTH INDIAN CHLORA-ALKALI UNITS Chemplast, Tamilnadu Chemfab Alkalies Ltd. Pondicherry Southern petro Chemical Industries Corp.Ltd.Chennai Kothari Petro Chemicals Ltd. Chennai Sree Royal Seema Alkalies & Allied Chemicals ,Andhra Pradesh BILT, Karnataka DCW Ltd, Metur TCC Ltd, Kerala

STATE SCENARIO Caustic soda is one of the basic inorganic chemicals manufactured from common salt caustic soda; Hydrochloric acid and sodium hypochlorite are the products. In the Kerala state, TCC is the only Chlora-Alkali industrial unit and has a production capacity of 175 MT Caustic Soda per day. There are many small scale industries in the state which consumes caustic soda for the production of soap, detergents etc. Because of high transportation cost . it is not possible to export caustic soda in large volume from the state. TCC is the only one chlor alkali unit in the state and it is employing environment friendly and energy efficient technology. Chlorine is a basic material required for water purification and without chlorine the water workers will not be able to supply good drinking water to the public.

TCC SERVING THE NATION TCC is employing 786 persons directly and many more indirectly. Its products find extensive use in manufacture of day to day consumable articles. Chlor-alkli products are basic chemicals used in the manufacture of plastic, paper, textiles, insecticides and pharmaceuticals. Many chemical industries in the state depend on TCC for supply of caustic soda Hydrochloric acid, Chlorine & Soda bleach.

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2.2 COMPANY PROFILE INTRODUCTION The Travancore Cochin Chemicals Ltd, popularly known as TC Ltd is a state public sector undertaking owned by the government of Kerala.TCC is situated at Udyogamandal in cochin Industrial belt. Incorporated in 1951, TCC is one of the oldest chlora-Alkali unites in the country.TCC is a large chemical industry engaged in the manufacture and marketing of caustic soda, chlorine, Hypochlorite acid, soda bleach and related chemicals. TCC is an ISO 9001-2000 certified company. The company supports a large number of Industrial units of strategic importance by supplying basic chemicals. CORPORATE HISTORY OF TCC LTD The Travancore Cochin Chemicals Ltd was established in 1951 and started commercial production in 1954 with an installed production capacity of 20 tones of caustic soda per day. The idea of establishing the unit was conceived by M/s Shehasayee Brothers the managing agent of FACT. This was for to supply HCL to FACT for making Ammonium Chloride utilizing Ammonia from their newly started plant. FACT and MCIC (mettur chemicals and Industrial Corporation) registered as a joint venture company under the name Travancore Mettur Chemicals (TMC) in 1950. The partnership was unable to complete the project due to shortage of finance.TMC has taken up their problem with the Travancore Cochin state government. By that time two other companies(Hindustan Industries Ltd.(HIL)& Indian Rare Earth Ltd(IRE)) were setting up their plants at Udyogamandal with a view to receive chlora alkali products from TMC. As the stoppage of TMC could affect three major companies the Travancore Cochin State government gave financial assistance to TMC and the company was renamed as Travancore Cochin Chemicals (TCC) in 1951. Travancore Cochin Chemical (TCC) is the first unit in India to manufacture Rayon grade Caustic soda. The company has implemented a number of technical renovations to improve productivity of the plant. They now use membrane cell Technology for their production. At present TCC has production capacity of 175 TPD of caustic soda.
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PRESENT SITUATION TCC is the only one chlor-alkali unit in Kerala. In India, there are approximately 40 Chlor-Alkali units as competitors. TCC owns 109 acres of land and around 786 employees are working in three shift plants are functioning by utilizing full capacity. The company has helped in attracting new industries to Kerala in past like Indian Rare Earth Ltd, Hindustan Insecticides Ltd, Hindustan News print Ltd , Kerala minerals & Metals Ltd etc. though assuring the availability of raw materials. PRESENT CAPITAL FORMATION

INVESTORS Government of Kerala KSIDC FACT Vinly Investment Ltd, Chennai Total

SHARE IN PERCENTAGE 80% 17% 2% 1% 100%

INDUSTRIAL INFRASTRUCTURE The company is conveniently situated at Udyogamandal .Industrial area in Kerala state on the river bank of Periyar. Out of the 109 acres of land which the company owns include 20 acres leased out of M/s BSES Kerala power Ltd on which company receives lease rent. In addition to the plant and building it has a full-fledged housing colony for accommodation of employees. The

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company is having a water treatment plant which draw from Periyar River with a capacity of 5 mgel. CORPORATE MISSION TCC is committed to supply quality chemicals at competitive prices to customers satisfaction. Concern for environment and safety are our priorities we intended to achieve, Utmost level of conservation of all resources including energy. Cost effectiveness in all operations. Regular up-gradation of technologies used in processing. Compliance with laws & statutory regulation. Capacity up gradation by 50 TPD. Production of Sodium Chloride. CORPORATE OBJECTIVES The corporate objectives of TCC Ltd are the following To produce & Market Caustic Soda and allied chemicals economically and in an environmentally sound manner. To maintain optimum use level of efficiency and productivity and to secure optimum returns on investment. To maximize profits from projects taken up. To continuously improve the plant and operational safety and to work within the emission limits set up by pollution control board. To continuously up grade the quality of human resources of the company and to ensure organizational development. To ensure corporate growth by expansion and diversification. To care for the community around.

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QUALITY POLICY OF TCC We are committed to enhance customer satisfaction by providing products and related services complying with a continually improving quality management system. ENERGY POLICY We are always committed to conservation of energy by all possible means. To accomplish our mission we strive for : Technological up-gradation reduce specific energy consumption Conducting energy conservation studies including energy audit & adopting the apt measures for conserving energy Contacting other organizations & enriching our experience on energy conservation Using renewable energy sources to the external possible Disseminating knowledge &information on energy conservation to our employees Low energy fuels also to be tried depending up on feasibility. HEALTH & SAFETY POLICY TCC is committed to provide a work every one of its efforts to manufacture high quality products at competitive price. The company will comply with all statutory requirements in this regards. The company will provide a work environment in which identified hazards are controlled if elimination is not feasible whenever necessary. Accident prevention is the direct responsibility of the Line Management & will be an important criterion for performance appraisal Line Management will ensure that all safety measure are incorporated in the operating and maintenance procedure as well as in any process technology changes in the plant / infrastructure.

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 Consideration of health & safety will be given proper weight age in selection and deployment of the personnel. The company will ensure that health and safety aspects are given due consideration in decision regarding purchase of plant equipments machinery and materials. Every employee of the company shall perform his / her job adopting safety and proper work methods and using appropriate safety equipments understanding that their career advancement is linked with safe performance. Contractors, sub-contract workers, transporters and visitors entering the factory shall be required to observe health & safety practices of the company in all their activities All contract jobs will be carried only through the laid down procedures with appropriate supervision The company will carry out safety audits, risk assessment studies, emergency mock drills, and periodic assessment of health of its employee as well as status of environment & implement remedial measures. Employee, consumer & public awareness where necessary will be imparted with the required education, training & returning on safety & health aspects related to the process and products. The company will include a resume of its health & safety performance in its annual reports. Since the success of the company depends on the health & safety of its imperative that work place hazards be identified appropriately evaluated and effectively controlled to achieve this goal whole hearted co-operation of its is solicited for this. GROWTH OF TCC 1956 1958 1960 1963 A continuous caustic Fusion plant with a capacity to produce 20 tones of caustic soda per day was added A chlorine liquefaction plant wa added mainly to meet demand from the newly set up plant of Hindustan insecticides Ltd ,Udyogamandal. Production of caustic soda was raised to 30 tons per day The caustic soda capacity was raised to new level of 40 tons per day
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day. The company established a new unit for the manufacture of Sodium Hydrosulphate with rated capacity of thirty per day raised to 60 Tones per day. 1967 1970 1975 The third stage of expansion capacity was raised to 60 TPD A 60 TPD CCF plant was set up. The sets its own water treatment plant Fourth stage expansion a new 100 TPD caustic soda plant employing Mercury cell Technology which was installed from Germany.TCC started its started its own water treatment plant. 1975-80 1983 Exported commercial Hydrochloric acid to gulf countries Installed indigenously developed plant to recover mercury from Effluents. 1987 1988 1990 1992 1997 Installed Hydrogen firing system Replacement of Graphite anodes by titanium anodes Brine dechlorination unit commissioned A research and development section was set up The company commissioned 100 TPD caustic soda plant in technical collaboration with ASAHI GLASS company of Japan using the Membrane Cell technology. The advantage of membrane cell technology was that the energy consumption got reduced by 30% and avoided the the use of mercury 2000 2002-03 2004-05 2005-06 The company set up a brine purification plant The Company was increased its production capacity of membrane cell Plant 125TPD 25 TPD caustic soda plant employing membrane cell technologies from M/s UHDE, Germany was commissioned 25 TPD caustic soda plant employing membrane cell technology from M/s UHDE, Germany was commissioned

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ACHIEVEMENTS TCC is always in the forefront to adopt and incorporate the latest technology in its plants. Several innovative and modernization schemes were implemented to achieve higher production and productivity energy conservation environmental protection and economy inputs. TCC has been dynamic to be proactive to market conditions and thus to came out as a profitable public sector undertaking TCC was bestowed with various awards for excellent performance with regards to productivity, energy conservation and environmental protection which is considered as an award for commitment rather than for efficiency. 1981 Best performance award for safety in the state from directorate of Factories and boilers, Government of Kerala 1988-89 Best pollution control award under group Heavy Inorganic Industries In Kerala from Kerala state pollution control board 1989 Award for best performance in safety in India under: chemical Industries group from national safety council 1989-90 Prize for productivity from Kerala state productivity council 1993 Best performance award for energy conservation in the state of Kerala under group Chemical and Fertilizers above 3000 KVA from Government of Kerala 1994-95 Best performance awards for the productivity in the state of Kerala under group Large Industries from Kerala state productivity council 1998 Best performance award for energy conservation in the state of Kerala under group Major Industries from energy management centre, Government of Kerala 1998 2003 2005 Performance award for energy conservation under group Chlora-Alkali Sector Ministry of power, Government of India Kerala state energy conservation award in the category of Large Scale Industries National Energy conservation award Chlor Alkali Sector
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2008

Pollution Control award from Kerala state Pollution Control Board

ORGANIZATION STRUCTURE The organizational structure involves arrangement of activities and assignment of personnel to these to achieve organizational goals. It is a way by which various parts of an organization are tied together in a coordinate manner and it illustrates the various relationship among various levels of the hierarchy within the organization as well as horizontal relationship among various aspects of the organizational operations. As well planned organizational structure results in better use of resources. An organizational structure is a mostly hierarchial concept of subordinates are a number of clustered entitles. The structure of an organization is usually set up in one variety of styles, dependent on their objectives and ambience organizational structure allows the expressed allocation of responsibilities for different functions and process to different entities. A good organizational structure is needed so that: a. Each individual in the organization is assigned a role , responsibility and necessary authority. Each person who is assigned to an activity must know his position, his role and relationship with others. b. The activities of all individuals are coordinated and integrated into a common pattern in order to achieve the organizational objective. Organization is needed for the purpose of integration of diverse activities in a cohesive manner. c. The optimum use of human skill and efforts is achieved. It helps in smooth operations and smooth flow, thus avoiding bottlenecks, idle time and idle machine. The organizational structure of TCC is shown in the figure. The present organizational structure of the company has proven to be effective in conducting operations at its optimum level. The staff structure encourages team work and good internal relationship. Unity of command is maintained throughout the organization.

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ORGANIZATIONAL CHART

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2.3PRODUCT PROFILE Caustic soda, Chlorine, Hydrochloric acid, Caustic soda flakes and sodium hypochlorite are the products of the company. Caustic soda, Chlorine and Hydrochloric Acid from the backbone of chemical industry. These are impotent to the countrys economy very much like steel and cement. Major products and their production capacity is explained below; MAJOR PRODUCTS AND PRODUCTION CAPACITY PRODUCTS Caustic Soda Lye Liquid Chlorine Commercial Hydrochloric acid Caustic Soda Flakes Sodium Hypochlorite PRODUCTION CAPA CITY (TONES PER ANNUM) 57,750 23760 1,27,742 33,000 15,000

TCCs main raw materials are common salt (sodium chloride), electricity and water. The company requires about 2650 units of electricity and 1.72 tons of raw salt per tones of caustic soda produced common salt is mainly produced from Kacch in Gujarath and Tamilnadu.

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PRODUCT: 1 CAUSTIC SODA (NaOH) It is a basic alkali. It is used in the manufacture of products like soap, paper, and textilesetc. caustic soda lye obtained from membranes cell is a clear colorless, odorless and soapy liquid. TCC is producing two type of caustic soda lye of concentration 32% and 50%.

USES A chemical for dissolving out extraneous matter from Wood for preparing pure cellulose and for the preparation Of alkali cellulose and for the production of viscose

INDUSTRIES SERVED Rayon & Rayon Pulp

Solution A chemical for preparing pure cellulose by dissolving out Paper, News print & Pulp extraneous matter. As saponification agent In bleaching, dyeing and mercerizing As cleaning agent For refining petroleum fractions Reagent for production of various organic chemicals Soap Textiles Heavy chemicals Petroleum refining Minerals and rare elements

earth

PRODUCT: 2 CHLORINE (Cl2)

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Chlorine, a co-product obtained in the manufacture of caustic soda is an equally important basic chemical. It Is a renowned water purifying chemical. It is a greenish yellow gas. Chlorine is sold after liquefying. Chlorine has got a pungent smell and liquid chlorine is amber in colour. USES Producing insecticides (DDT,BH etc)and pesticides Purifying drinking water and sterilizing sewage effluents. As a bleaching agent For manufacturing PVC and allied co-polymers For producing a variety of organic chlorine compounds For upgrading titanium contents INDUSTRIES SERVED Insecticides Water purification Sugar, paper & pulp, Textiles Plastics Fine chemicals Mineral processing

PRODUCT: 3 HYDROCHLORIC ACID (HCL) Hydrochloric acid produced by TCC is of high purity and finds application in number of chemical industries and it is yellowish green in colour. The HCL produced has concentration 3033%. USES For the production of Ammonium Chloride and in manufacture INDUSTRIES Fertilizers

of Phosphoric Acid A cleaning agent in galvanizing Engineering For hydrolyzing starch in to sugar Starch industry In monazite processing for the separation of rare earths as chlorides Minerals processing From thorium

PRODUCT: 4 SODIUM HYPOCHOLRITE Sodium Hypochlorite, commonly known as Soda Bleach, finds its application in bleaching, as a disinfectant and also in the extraction of rare earth elements. It is a pale yellowish colour liquid. Soda bleach is the only branded product of TCC. TCC is producing soda bleach under the brand name Ekoclean .
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\ USES As a bleaching agent As a germicide and cleaning agent For sterilization INDUSTRIES SERVED Textiles, pulp and papers Hospitals Hospitals

PRODUCT: 5 CAUSTIC SODA FLAKES Caustic soda lye is concentrated to 98-99% NaOH and converted to flakes in a continues, Caustic fusion plant (CCF). It is a white deliquescent solid in flakes form. Caustic soda flakes have also the concentration 98-99% NaOH.

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CHAPTER 3 DEPARTMENTAL STUDY

DEPARTMENTAL STUDY
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3.1 HRD / TRAINING DEPARTMENT Department structure

DF AGM (HR) M (HR&W) DM (CS) APO PRO

Human resources is considered as the most vital asset of an organization. TCC has a well defined employee power which helps the organization to perform well in the markets. Human resource department is headed by manager (HRD). He is responsible only for training and development M (HRD) id reporting to Assistant General Manager (HR).

MAIN FUNCTIONS OF HR / TRAINING DEPARTMENT a. Identifying training needs b. Arrangement requirement training c. Maintaining the training record

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SCOPE The procedure covers all aspects of training. Arrange suitable training for employees for updating skills based on the identified training needs. Training advisory commitment is responsible for suggesting training requirements of the various department and disciplines Formulating training programs on yearly basics. The committee propose a training calendar every year Training needs for the years are identified and recorded by the department the head.

The details are handed over to the training department by respective department head. Training department does compilation of the identified training needs of the employees. Necessary training programs are arranged by training department to later the identified training needs of the employees. Training department organize training programs using internal faculty or engaging faculty from reputed organization. The training department in consultation with concerned department heads organizes in house training programs on special requirements. When employees attend training programs conducted in house. A feedback about the usefulness of the training is obtained and consolidated. The concerned department had evaluates the feedback from the participants after a period of 2-3 months to ascertain the effectiveness of the training program. Employees are also sent for training to other reputed institutors nominations for sending employees for training in such institutions outside the company are put up for approval of the appropriate authority as per the guidelines outside programs submits a feed back on the trainee undergone the training department. The achievement against annual training calendar is reviewed half yearly by department helps for the number of programs held, number of employees participated for each programs the highlights of training effectiveness, feedbacks..etc. The training department maintains a register on the training program attended by the employees. Training department maintains the format received from participants after getting it evaluated by the concern department head regarding the effectiveness of training. The managerial personnel of the company are imparted training to improve their managerial capabilities at the HRD center of the company and outside institutes depending upon the needs identified by the head of the department.
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TCC use both on the job and off the job training methods fo training the employees. GENERAL TRAINING In order to provide this type of training, one has to determine what is the trainees growth potential, up to what level to be done and requires evaluation of his present performance. NEED BASED TRAINING Need based training will be done on the basis of determining the level of knowledge and skill one requires for a job. Next is to find out how many employees have to be given this training. On the basis of these needs training is given to the employees. CUSTOMER TRAINING Customers are given training on handling of chlorine and other products in various situations. INDUCTION TRAINING It is the training provided to the newly recruited employees to familiarize them with the activities, rules and policies of the organization. It is also done to introduce the new employees to the other employees of the organization.

TECHNOLOGY TRAINING Company provides advanced training for workers to cope up with the technological changes. Feedback is obtained from employees and effectiveness of the training program is ascertained after a period of 2-3 months. PERSONALITY DEVELOPMENT PROGRAMME They are conducted on a regular time period for the development of both workers and managers.

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INTERNAL TRAINING Every month three day training program is held for workers. The workers education center, under the central labour industry conducts it. These programs are conducted on a contract basis and are recorded annually 20-25 workers from various sections are selected every month and 4-5 officers from WEC conduct the training programs. The topics covered include personality, management development, inter personnel relations, impact of globalization effective communicationetc. Other in house programs are conducted by agencies like Kerala state productivity council. In such programs company can decide upon faculties and topics for training. During the installation of membrane cell plant, officers were sent to Japan for training. So on the job training is prevalent in all sections of the company. EXTERNAL TRAINING PROGRAM These programs are provided for workers conducted mainly inside Kerala and a few numbers outside Kerala also. The management does not keep aside a budget for training need. On an average TCC spends more than 11 lakh rupees on the training needs every year.

OBSERVATION OF HRD HRD department organizes training programs using internal faculty or engineering faculties from reputed organization. TCC should see to it that training needs of the works, supervisors and executives are recognized and separate training program should be developed for each groups. PERSONAL DEPARTMENT Managers Others Total 103 683 786

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FUNCTIONS OF PERSONAL DEPARTMENT 1. Recruitment: through professional and executive employment exchange and P.S.C 2. Manpower planning: ascertaining the number of vacancies 3. Welfare functions: including statutory and non statutory welfare measures. 4. Grievance handling: as per the provisions of Industrial Disputes Act & factories act 5. Maintaining company discipline: as per standing order act 6. Industry relations 7. Public relations 8. Job descriptions (Techniques) 9. Job specifications (Techniques) 10. Job analysis (Techniques) 11. Performance appraisal 12. Training 13. Staffing 14. Formulates and implements personnel 15. Wage and salary administration 16. Filing various returns relating to employees PROMOTION POLICY It is divided into two parts. a. Managerial Promotion Policy: This is on the basis of a stipulated length of service in the immediate lower grade and it is the main criterion for promotion. Promotion from workers category to officers grade shall be ordered only with board resolution and with permission of government. Time bound grade promotions are considered in the case of lowest tow managerial scales period of 10 years service can be considered for promotion. b. Non- Managerial Promotion Policy: Vacancies are to be filled by line recruitment through PSC and will be filled as per the policy and procedure lay down through the term of settlement.

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If a prospective employee has the minimum qualification and stipulated service then he is considered for promotion. If qualified persons are not available for promotion in the respective section/ department. It is notified on the company board. Candidate with the same grade and stipulated length of service considered are not found available after test, a lower grade person with stipulated service can be given double promotion. WAGE AND SALARY ADMINISTARATION A sound plan of wage and salary administration seek to establish a fair and equitable compensation offering similar pay for similar work. Actually the settlement of wage and salary is done by the accounts department. The trade union / management will decide how much to pay for each employees and workers regarding his performance. OVERTIME ALLOWANCE Wage covered under the Factories Act will be given as overtime wages. According to the provision contained in the Factories Act and the ruler framed thereafter. The overtime wages for workers will be two times of effective wages.

SHIFT ALLOWANCE There are namely 3 shifts. Shift allowances to workers, who are working in shift are

Shift 8-4 Shift 4-12 Shift 12-8 Shift

Allowances Rs.8/Shift Rs.8/Shift Rs.12/Shift

WELFARE PROGRAMMES
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Labour welfare measures in India can be classified as statutory and non-statutory. Statutory welfare comprises those provisions which are binding on employer by law. This relate to certain essential working conditions and standards of health statutory welfare measures provided are accident benefit, annual bonus, drinking water , lunch rooms, sitting facilities, storing and drying facilities ,health facilities and educational allowance. The non-statutory welfare programs provided voluntarily by employer and housing facilities, medical attendance schemes, group accident policy, production bonus, voluntary retirement schemes and performance appraisal. GRIEVANCE REDRESSAL Grievance Redressal committee is statutory. It is to be legally maintained. Trade unions are satisfied with the present condition. Hence in TCC Grievance Redressal Committee is not there, as here exist a good employee-employer relationship. Grievance Redressal committee consists of an experienced and efficient team of personnel department. And also the moral level of employee is very good.

TRADE UNION There is no labour unrest in the company for the past few years. An atmosphere of trust and mutual understanding is developed between management and labour union. TCC Employees Association is the only one union in TCC which is recognized. WORKERS PARTICIPATION IN MANAGEMENT TCC encourages its workers to take part in the management of the company. The workers are often consulted through their union while implementing major welfare programs of the company. In addition to this the workers are also included in some of the committee for taking management decision, which includes committees like.

a. Canteen Management Committee

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b. Safety committee c. Grievance committee d. Tri-Party Committee e. Provident fund trust

3.2 MATERIALS DEPARTMENT Department structure

DF AGM (MT)
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M (P) DM (P) ASS. (PF)

M (1C) M (S1) M (S2)

Manager Materials is the head of the department. He is responsible for all functions related to purchase, stores and inventory control. Materials department is divided into three sections. 1. Purchase section 2. Stores section 3. Inventory Control section

PURCHASE SECTION Purchase procedure: Receiving MPR Evaluation of the MPR Inviting tender from various organization
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Evaluation of the tenders and prepare a comparative statement Send tenders to the originator of MPR for recommendation Issue purchase order as per the recommendation of the originator Purchase of stock items as required by inventory control Purchase of maintenance items as required by the maintenance planning and plant sections. Purchasing of raw materials required for the process Purchase of bulk consumable for the process Purchase of demanded items Payment against delivery through bank

Purchase section deals with:

STORES SECTION Store section deals with: Maintaining a minimum stock of items required by various departments Issuing of stock items required by various departments according to the materials request (MR). Preparation of various reports like: Receiving report Inspection reports Evaluation of MPR for purchase of new items Preparation of materials code system (10-digit system). INVENTORY CONTROL SECTION Inventory control is an essential function of stores department. It helps to reduce cost and increase profit of the organization. Codification of material is done by manager inventory
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control. For controlling the inventory, certain levels of inventory such as maximum, minimum and re-order level is prepared. When the stock reaches the re-order level, purchase request is made.

INVENTORY CONTROL The purpose of inventory control is to avoid surplus and security of materials. The inventories items are classified based on value contributed by each items depending on the cost of and turnover of materials. OBJECTIVES OF INVENTORY CONTROL Avoid unwanted pilling up of inventory Material identification to avoid duplication To maintain records To dispose scrapped items To determine which and how much to replenish FUNCTIONS OF INVENTORY CONTROL Maintaining a minimum stock of items required by various departments. Preparations of various reports regarding inventory such as: Receiving reports Inventory ledger Inspection report Evaluation of MPR Preparation of material code system to verify items and for easy handling Fix various levels such as minimum level, maximum level, re-order level, damages level etc. of each items. Calculate and minimize lead time Separate materials into Indian/import

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3.3 OPEARATIONS DEPARTMENT Department structure

GMT AGM (OP) M ( PL1) M (PL2)

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DM (PR1 ) SE PE Ex. Tr.

DM (PR2 )

SE PE Ex. Tr.

Operations department carries out the manufacturing of all the products. The company carries out continuous productions and hence this department plays a very crucial role in TCC. This department is headed by Assistant General Manager Operations who is reporting to General Manager Technical.

DUTIES

&

RESPONSIBILITIES

OF

ASSISTANT

GENETAL

MANAGER

OPERATIONS: Head of the operations department He fixes the monthly target of the product based on the market requirement He is responsible for modification in the production process and responsible for the affluent discharge He is the designated emergency controller during any hazardous incident of leakage & emission of toxic gasses/ fluid etc.

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DUTIES & RESPONSIBILITIES OF PLANT MANAGER Custodian of plant He will plan production activities to meet the production of target set by the AGM (OP). He is responsible for the material consumption He plans the shutdown activities and carries out maintenance work of the plant He co-ordinates the operational functions with the manager of other departments for the smooth functioning of the plant. OBJECTIVES OF OPERATIONS DEPARTMENT Maximize production confirming to production specification Optimizing the consumption of electricity and purification of chemicals Maximize the production overheads Maximize the availability of electrolysis for operations THE OVERALL PRODUCTION CAPACITY OF TCC PRODUCTION Caustic Soda Lye Liquid Chlorine Commercial HCL Soda Bleach Caustic Soda Flakes CAPACITY 175 TDP 72 TDP 387 TDP 45 TDP 100 TDP PLANTS IN TCC There are three plants involved in the electrolytic production process of the company.
1. AGC Plant This plant is designed by ASAHII GLASS COMPANY LIMITED, TOKYO, JAPAN. The plant was commissioned on 29th may 1997. The products are Caustic Soda , commercial Hydrocloric Acid, liquid Chlorine and Soda bleach. The plant consists of 20 electrolyzes. The plant has 125 TPD Caustic Soda production capacities.

38

2. UHDE 1 Plant The plant is designed by UHDE, Germany. The plant was

commissioned in 2005. The plant has a production capacity of 25 TPD of Caustic Soda. It consists of one electrolyze with 54 elements.
3. UHDE 2 Plant This plant is also designed by UHDE, Germany. The plant was

commissioned in 2006. The plant has a production capacity of 25 TPD of Caustic Soda. It consists of one electrolyze with 54 elements. RAW MATERIALS USED Raw materials used in the production process in TCC are 1. Common Salt (raw salt) 2. Electricity 3. Water

TECHNOLOGY USED FOR PRODUCTION The technology used by TCC is Membrane Cell Technology which is environment friendly and energy efficient technology. PROCESS FOLLOWED The process followed in production by TCC is electrolysis of Brine. PROCESS DESCRIPTION Brine (solution of raw salt & water) saturation & purification process are common for AGC, UHDE 1 and UHDE 2 plants. STAYS IN THE PRODUCTION PROCESS
1. Brine saturation and primary purification Sodium Chloride or row salt is fed into the

saturator using the bucket elevator, where it set mixed with the Chlorine decomposed, depleted Brine. This saturated Brine from the saturator goes to precipitation tanks A & B and a mixer tank where Barium Carbonate Soda Ash and Caustic Soda are added respectively to remove Sulphates, Calcium and Magnesium. Impurities as precipitates.the Brine along with
39

the precipitates then goes to the clarifier where 90% of the precepts are allowed to settle. The clarified Brine is passed through Anthracite filters where the remaining 10% precepts are separated. HCL is added to the filtered Brine tank to convert impurities to ionic form. Brine is to be admitted to the secondary purification system only after the desired purity level is attained.
2. Secondary brine purification The secondary Brine purification system consists of our ion

exchange filters. The primary purified Brine is passed through the Ion exchange filters where it undergoes Ion exchange process. Ion exchange materials are insoluble acids & bases, which when converted to salt remain insoluble. These ion exchange materials are used in columns in which the solutions containing ionic impurities like Calcium and Magnesium are in contact with the resin bed. The saturated resin is then regenerated to its original state by acid alkali solution.
3. Electrolysis The secondary purified Brine is passed through a heat exchange, fed to Brine

head tank and is admitted to the anode compartments of the electrolysis. Dematerialized water is also admitted to the cathode compartment of the electrolysis. Direct current (DC) supply is connected to the anode and cathode. During electrolysis Caustic Soda Lye is produced at cathode which is 32% concentration. Hydrogen gas is also formed at the cathode chamber. Chlorine is formed in the anode where the depleted Brine solution comes out. Caustic Soda is pumped into storage tank and Hydrogen and Chlorine gas goes to their respective treatment section.

4. Chlorine treatment & liquefaction Chlorine treatment and liquefaction involves cooling,

washing filtration, drying, compression liquefaction, storage and liquid Chlorine filling in the cylinders, the Chlorine from anode chamber of the electrolysis is first cooled at 30 degree celcious with the cooling tower water. Final traces of salt is removed by using a wet Chlorine filter, it is then again cooked using chilled water. After this the Chlorine gas is divided into two streams for the HCL synthesis and for liquefying. The Chlorine for liquefaction is dried using 98% Hydrochloric acid in drying tower. The dried Chlorine is compressed using acid
40

ring compressors. The compressed Chlorine gas turns into liquid Chlorine storage tanks. Chlorine for the HCL synthesis unit is fed by using chlorine blower.

5. H2 treatment and HCL analysis Hydrogen gas from the electrolyser is washed with water

in washing chamber, cooled using tower water and admitted directly to Hydrogen blower, after separating the condensate. The Hydrogen gas is used for the HCL synthesis and also as a fuel in the CCF plant. Hydrogen for HCL synthesis is fed to the oven using Hydrogen blowers. Here it is burned in the presence of Chlorine. The resulting HCL gas is absorbed in the water flowing down the oven to produce 31% commercial HCL gas.

6. Continuous Caustic fusion It is done in CCF (continuous caustic fusion) plant. CCF plant

is mainly for concentrating 32% NaOH lye to 50% NaOH lye and then to 98%-99% NaOH melts which is converted as flakes. The 32% NaOH lye is stored in the main storage tank, as a part of which goes for sale. The remaining part of 32% lye is passed through three evaporators Ev1, Ev2, Ev3. In the first evaporator the Caustic Soda lye is heated using vapours generated in Ev2 and Ev3.the steam generated in Ev1 is then drawn by a vaccum pump through a condenser and thus Ev1 is working under vaccum and at 70-80 degree celcious. The outlet from Ev1 is 40% Caustic Soda lye which is passed through Ev2 where it is evaporated to 50% Caustic Soda lye using 9 kg/-cm2 steam from boiler. A portion of 50% Caustic Soda lye cooled and sold. The remaining portion of 50% Caustic Soda lye is pumped to Ev3 where it is heated using heat transfer salt which is a mixture of 53% Potassium Nitrate, 40% Sodium Nitrate and 7% Sodium Nitrate. In Ev3 the 50% Caustic Soda lye is concentrated to 98%-99% Caustic Soda melt which is converted as Caustic Soda flakes in a flakers drum.

41

7. Soda Bleach preparation Excess of waste Chlorine cant be disposed as a waste gas. But

it has to be absorbed in dilute Caustic Soda lye to produce Soda bleach. Thus the Soda bleach plant serves also as a pollution control system. A part of 32% Caustic Soda lye, chlorine is used for the preparation of Soda bleach. The excess Chlorine at the time of plant shutdown or startup and also from cylinder filling station goes for Soda bleach preparation, 32% Caustic soda lye is diluted using de-mineralized water. The solution is passed through two absorbing towers, where it reacts with Chlorine gas so as to produce Soda bleach.

3.4 TECHNICAL DEPARTMENT Department structure

GMT

DGM (TS)

AGM (TS)
42

CE (TS)

DMTS (M)

DMTS ( C )

SETS ( C )

There are two main sections in this department: 1. The Technical Service section The technical service department is concern with the monitoring of production process. This includes making a comparative analysis if any deviations are found. Reports are maintained on daily as well as monthly basis and internal as well as external basis. The reports are sent to all other departments. I. Daily report includes the following: II. Daily production details Sales Stock Power consumption Over time reporting etc. Production process report Material balance Chlorine utilization Raw salt analysis etc.
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Material consumption details

Monthly internal reports include the following:

III.

Monthly external report includes reports to various Government department and other agencies, production calculation and reporting.

Computerization & IT development All functional areas are fully computerized. That is function wise, all functions are fully computerized. But in depth wise TCC is trying to increase the depth of computerization. The software in use is clipper and paradox. The server configuration is IBM X 220 and the server capacity is 18GB hard disk running on Novel 4.11 operating system. The server class machines are P3, 1 GHz, 128 MB RAM, 18 GB hard disk plan to install Oracle based software for all the departments. Presently there are two Local Area Networks (LAN). One pertaining to financial data which is called financial package system and the other related to the materials package system and the other related to the materials managements, which is the materials management system. 2. Safety & Pollution control system The safety policy of the company states that: TCC is committed to provide every one of its employees & the related public an accident free and healthy environment in its efforts to manufacture high quality products with all stationary requirements in this regard. The company will provide a work environment in which identified hazards & controlled if eliminations not feasible and will provide personal protection requirements like gloves, file mask welding shield, safety shoes, helmets, safety belt, skin protective ointments etc .whenever necessary. Accident prevention is the direct responsibility of the line management and will be an important criterion for performance appraisal. Line management will ensure that all safety measures are incorporated in the operating and maintenance procedure as well as in any process technology changes in the plant. The company will ensure that health & safety aspects are given due consideration in decision regarding purchase of plant equipments machinery & materials. All contract job will be carried only through the laid down procedures with appropriate supervision.

44

The company will carry out safety audits, risk assessment studies, emergency mock drills, periodic assessment health of its employees as well as status of environment & implement remedial measures.

Employee, consumers & public awareness where necessary, will be imparted with the required education, training & retraining safety and health aspects related to the process and products.

Contractors, sub-contractors, workers, transports & visitors entering the factory shall be required to observe health and safety practices of the company in all their activities. The company will include a resume of its health and safety performance in its annual reports.

FUNCTIONS OF TECHNICAL SERVICE DEPARTMENT 1. Deviation analysis of plant operating parameters. 2. Collection and computation of production details, raw materials, input output details. 3. Downtime or failure analysis of plant and equipment and providing technical advice. 4. Preparation of monthly raw materials and input output details. 5. Give suggestions on corrective action to avoid downtime of equipment. 6. De bottle necking to improve production and efficiency of operation. 7. Organizing energy audit and implementation of energy saving schemes. 8. Preparation of schemes for improvements or modification of process, plant and machinery. 9. Vetting of proposal originated by other department. 10. Inspecting or testing of equipment for the plant. 11. Study and report on process upset accidents if any etc. 12. Any other job specifically assigned by management.

POLLUTION CONTROL
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In line with this, the company is carrying out various schemes including extensive pollution control measures, on site emergency planning, training of employees and customers on accident prevention and safe handling of chemicals. The company aims to minimize all adverse environmental and health. Impact arising out of its operation, converse all kinds of resources and to obey all statutory and legal regulation. Acidic and alkaline effluent steams are collected in pits. If the Sodium Chloride content in the acidic stream is within limit. It is used in Hydrochloric acid. The remaining effluent are mixed and neutralized. The PH is corrected to 7 with extra acid/alkali addition. It is then fed to the lagoon where better homogenization of effluent takes place. Also Sodium Bisulpahte solution is added to the Chlorine content. Thus the effluent let out to the river is neutral and free of Chlorine content. Also the Chlorine gas during plant start-up and shutdown tripping of Chlorine compressor, from Chlorine cylinder filling station is collected and absorbed in dilute Caustic Soda lye to produce Soda Bleach which is sold to the consumers.

3.5 ENGINEERING DEPARTMENT Department structure

GMT AGM (E)

CE (MP) SE DM Ex. Tr. (MP)

CE (M)
46

CE (U&S)
DM (U&S)

DM SE (M) Ex. Tr.

The Engineering department has been divided into four sections. 1. Electrical Department 2. Mechanical Department 3. Instrument Department 4. Civil Department ELECTRICAL DEPARTMENT There are two functions for this section. They are as follows: a) OPERATIONS Electrical supply is received from KSEB through substations. Direct Current (DC) is needed for electrolysis and Alternating Current (AC) is converted into DC in rectifier plants. AC is used for auxiliary purpose. The following are the function of the operational section. b) MAINTENANCE Ensuring uninterrupted power supply Man management.

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This section is headed by chief engineer in planning and implementing on engineering works. This section also provides assistance to project development of new project. MECHANICAL DEPARTMENT Mechanical section found to be the back bone of TCC. All types of annual maintenance is handled by this section and look forward to maintain the machinery in the best possible manner and ensure healthy and sound flow of workers within the organization. Following are some of the objectives: To ensure all equipment engaged in production are in good condition To cut down tine of critical equipments To reduce cost due to inefficiency in equipment handling. INSTRUMENTATION DEPARTMENT The main functions of this section are as follows: Plant processing operation and control of plant and equipment. Keeping record for it The maintenance of up keep of equipments. CIVIL DEPARTMENT Civil section is an independent department headed by chief engineer. The main role of this section is the construction of the building and other premises of the company. It is also engaged with the social task to ensure the smooth flow of industrials activities. The main functions of this section are as follows: Maintenance of existing building. Painting and insulation Tender issue for civil workers.

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3.6 PROJECT AND SYSTEMS DEPARTMENT Department structure

GMT

DGM (PJ)

49

AGM (R)

AGM (S & PJ) DM (SY)

CE (PJ1)

CE (PJ2)

Ex. Tr.

The main function of the projects and systems department is capacity addition and implementation of new technologies. It is an independent unit with a different function. Their main functions to prepare feasibility reports and to invite tenders for execution of new projects. MAIN FUNCTIONS OF PROJECT DEPARTMENT Involves planning, feasibility study and implementation of ne technologies Preparation of detailed reports Preparation of feasibility reports Evaluation of tenders Invitation of tenders through advertisements Agreements Execution Hand over the new projects to operations department FUNCTIONS OF SYSTEMS DEPARTMENT Implementation of new ERP system
50

Maintenance of website Maintenance of all computers Maintenance of all printers and peripherals Maintenance of all networking systems Management of broad band and internet connections

3.7 SECRETARY AND INTERNAL AUDIT DEPARTMENT Department structure

MD
51

DF

CS & IA

Memorandum and articles of association, certificate of incorporation and other statutory registers under the Companies Act 1956 are maintained in the companies registered office at Udyogamandal. DUTIES AND RESPONSIBILITIES OF THE COM APNY SECRETARY Conducting board meeting for the organization The legal interpretation of the profit and loss statement and balance sheet Filing returns with registrar of companies Drafting agreements with the financial institutions under the Companies Act Conducting the annual general meeting and extra ordinary general meeting if required Gratitude function of the organization Providing public information under right to Information Act, 2005 Laison with Registrar of companies, LIC officials and other government and private agencies.

MANAGEMENT OF THE COMPANY

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A board of directors consisting of one managing director, director finance and three other part time directors of the company. Company has seven share holders. They are Government of Kerala, FACT, KSIDC, SHL Trading Ltd and two independent nominees from Government of Kerala. INTERNAL AUDIT The internal audit system in the company has been established since long. The Internal Auditor reports directly to MD. The staff of the department includes one stock verifier and two senior assistants. FUNCTIONS Pre audit of all purchases and contract files Verification of sales orders and related records Verification of payrolls and wage salary of workers, staff and officers Increment proposal of management staff, salary fixation etc Verification of various vouchers, journals, ledgers, and other records of financial and cost accounts sections. Operational audit performance, audit, performance, management audit etc if necessary

3.8 MARKETING DEPARTMENT

Department Structure

DF

AGM (M)
53

SM

DM (M)

ASO

Marketing department in TCC is product centered with separate personnel entrusted to each product. TCC is the only chlor-alkali company in Kerala. So firm has more or less monopolistic market in Kerala. TCC gives primary importance towards satisfaction of its customers. Marketing department consist of an office section and an issue section. All documentation work comes under office section and all works relating to sales comes under the issue section. TCC will adopt marketing strategy according to product nature, market situation, demand of the product etc. TCC gained about 80% of the market share in Kerala.

MAIN FUNCTIONS OF OFFICE SECTION Preparation of sales quotation, letters, amendments etc, maintenance of sales officers register books and other necessary information. Preparation of sales budget, sales plan, monthly allotment etc, correspondence with parties and follow up of routine and regular matters. Preparation of sales order, dispatch and delivery notes etc Upkeep of all files up to date MAIN FUNCTIONS OF ISSUE SECTION
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Preparation of schedule of dispatch and actual dispatch Execution of sales offers Advising parties about the dispatch effected Maintenance of daily stock registers

THE MARKETING MIX The four Ps in the marketing mix are as follows: 1. Product Products of TCC include caustic soda, chlorine, hydrochloric acid & sodium hypochlorite. The industries served are soap, insecticides, pharmaceuticals, chemicals, mineral processing, disinfectant, textiles, rubber, water purification and petroleum. The only branded product is soda bleach and the brand name is EKOCLEAN. 2. Price The company has adopted a differential pricing policy. The price is fixed through negotiation for long term contracts. For small customers, price is fixed from time to time. An open body named Alkali Manufactures Association of India (AMAI) fixes selling price for a particular period. Price of the product is fixed by adding the production costs, excise duty, VAT & freight charges. Tenders are issued to the customers with a price quoted and if it turns to be a lowest bid and satisfies the customers the sales are done. The major markets are Kerala, Karnataka and Tamil Nadu. Except caustic soda, all other products are sold in South India. Long term contracts are being entered with customers. Price concessions are given to long distance customers taking freight elements into account for transportation of the product, raw materials and also all other logistic purpose. Company has given contracts to outside agencies. The contract is placed for each material and that is done in an annual basis. 3. Place Channels include direct selling to customers for caustic soda there are some agencies outside Kerala for marketing the products. The entire marketing is done at the company headquarters at Udyogamandal and there are no other marketing offices. All payments take place through SBT (State Bank of Travancore). Place is concerned with various methods of

55

transporting and storing goods and then marking them available for the customer. Getting the right product to the right place at the right time involves the distribution system. 4. Promotion All the products are industrial products. It lacks a good promotion policy to withstand competition from private sector. The customers are aware of the existence of the company and when and how to get the product. Hence there are no much promotional activities. Marketing factor is price which depends upon the national and international price. The company does advertise in some academic and trade journals like chemical magazine etc. The promotional activities are done also through the company website www.tcckerala.com.

THE COMPETITORS There are about 40 companies in India, which are producing the same kind of products that of TCC. In the 40 companies, 12 companies are in South India. All Chemical Industries are in private sector except TCC. 1. Chemfab Alkalies Ltd, Pondicherry 2. Andhra Sugar Ltd 3. DCW Ltd, Mettur 4. Kothari Petro Chemicals Ltd 5. Tamil Nadu Petro Products Ltd 6. Southern Petrochemical Industry Corporation, Chennai 7. Sree Royal Seema Alkalies and Allied Chemicals 8. Chemplast, Mettur 9. Tuticurin Alkali Chemicals and Fertilizers 10. Tata Chemicals, Gujarat MAJOR CUSTOMERS 1. Hindustan Lever Ltd, Cochin, Kerala 2. Indian Rare Earths Ltd, Udyogamandal, Kerala
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3. Hindustan Newsprint Ltd, Kottayam, Kerala 4. Hindustan Organic Chemicals Ltd, Ambalamugal 5. Steel Authority of India Ltd 6. Mysore Paper Mills Ltd, Karnataka 7. Kerala Minerals and Metals Ltd, Kollam 8. Travancore Titanium Products Ltd, TVM, Kerala 9. FACT, Kerala 10. Kerala Water Authority, TVM, Kerala ADVERTISING Advertising is done in weekly journals, magazines and news papers.

MARKETING STRATEGY Organization has adopted a strategy for their product nature, market situation, demand of the product, competition etc. In Kerala TCC is facing an oligopoly. TCC gained about 80% of the total market share. Market share is based on production. 60% of the goods produced are sold outside Kerala and 40% within the state. ACTIVITIES OF MARKETING DEPARTMENT Whenever a company places an advertisement regarding the requirement of chemicals like caustic soda lye or flakes with the specification for the chemical payment terms, quantity required, validity period, the companies that are ready to supply (like TCC) will send tenders to the required company. This is also known as tender document. In a tender document mainly 2 documents are specified: a. Technical Bid This means specification about the quality aspect of the product, how much quantity can be given within a period as specified by the customer company. These terms are well explained in the technical bid. b. Price Bid

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This is a part of the tender document which specifies the basic prices of the company products. The document rate is given for bulk purchasers, payment terms are also explained. Along with this offer is placed the customer company which will be attracted with Earnest Money Deposit (EMD). This deposit is for the purpose of assuring the customer company that if they accept the TCC offer, certainly the product will be supplied to the customer. The deposit will be refunded by the customer company after the purchase is made. The EMD is only attached in case of bulk purchase. After accepting the offer placed by TCC, the customer company will place a purchase order. The purchase order explains the details of the product, quantity, basic price... Etc. Sales order is placed and will be verified by Deputy Marketing Manager. He makes arrangement in respect of supplying the product to the customer. The acceptance offer is usually by selecting the lowest price. From the collected tenders if price by TCC is higher than any other parties, those parties will be done so as to bring the price lower. If the price is not lowered, the offer will be rejected

3.9 FINANCE DEPARTMENT Department structure

MD FC

DFC

DM (F)

58

DFM1

DFM2

DFM3

DFM4

SAO AO

Deputy finance controller is having the overall responsibility of the finance department. Which include co-ordination of audit, Board meeting and company taxation. Deputy finance controller co-ordinates the function of bil passing establishment section, debt collection, cash and bank. The internal audit system is carried out in the company by the initial audit section headed by the chartered accountant. Regular reports are given to the department heads of taking corrective actions where necessary, which is submitted to the MD. The company has an effective budgetary control system. The budgets are reviewed, deviations analyzed and necessary corrective actions is initiated. Important variations relating to raw materials, furnance oil, electricity etc are analyzed and furnished to various levels of management for corrective actions. The key budget factor is the power availability which is estimated and a rough picture of anticipated power shortage is drawn up. The main function of bill section is passing of bills, which is done after checking quotation, order and production receives/ work achieved. Bills are passed after seeing that materials received is in conformity with the purchase order. Finance is considered as the valid part of any business organization. It is the function which controls the procurement of allocation of funds in the business operations. In TCC a well

59

developed and effective functional department is functioning. Deputy finance is the head of the finance department. THE MAIN FUNCTIONS OF FINANCE DEPARTMENT Generation of funds and utilization of funds Treasury operations Financial book keeping and finalization Cost recording Sales accounting Bill passing Budgeting and financial control Preparation of wages bills Preparation of invoice SAO confidential is exporting to DFM. Preparation of balance sheet is done in accounting section. TCC has an exclusive PF trust for their employees. The company gives money to the trust. Trust invests this properly. Retirement benefit is issued from here itself. The companys liability towards gratuity to employees is covered by group gratuity scheme with the LIC of India. SOURCES OF FUNDS To produce and sell there must be adequate finance for raw-material and other supplies and also to meet day to day expenditure of the enterprise. The company raise funds by means of equity funds and borrowed funds. Thwe share capital include authorized, issued, subscribed and paid up capital. Loans are obtained as term loans from SBI, IOB, UBI, IDBI and material loans from Government of Kerala. ANNUAL TURN OVER OF COMPANY

Year

Amount (Lakhs)

60

2002-2003

7421

2003-2004

9123

2004-2005

8869

2005-2006 2006-2007

10877 12321

2007-2008

9390

2008-2009

12063

SIGNIFICANT ACCOUNT POLICY a. All revenue cost, assets, and liabilities are on the accrual basis, exeptv customs duty. b. Sales include excise duty and sales tax c. Inventories valuation Stock in trade: Caustic soda lye and flakes are valued at works cost or net realizable value, whichever is lower. By products are valued at net sales realization during the year. Raw materials, mercury, packaging materials, fuel oil stores and spares are valued at weighted average cost. Tools and equipments are shown at revalued cost.
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d. All fixed assets are carried at cost less depreciation. Interest on loan during the period is added to the cost of fixed assets. e. Depreciation For plant and machinery depreciation is calculated on a straight line basis specified in schedule XIV to the companys Act, except for the membrane whose life is only 4 years. For buildings, service equipments, furniture, fixture, office equipments, electrical installation etc depreciation is calculated on a written down value basis at the rates specified in the Act. f. In foreign exchange transaction all assets and liabilities are translated at the relevant exchange rates at the end of the financial year. g. Sales of goods are recognized on accrual basis.

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CHAPTER 4 SWOT ANALYSIS

SWOT ANALYSIS STRENGTH Only Chlor alkali unit in the state Good record of physical and financial performance in the past. Qualified work force, brilliant engineers, managers and skilled workers. No strike reported for the last few years . Companys products are basic chemicals and are considered to be the building blocks of chemical industry. The company has 80% market share for its products in Kerala. The company is a feeding industry to other companies. Excellent management labour relation. Strategic location with no other competitors around at present.

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Availability of water in abundance as TCC is situated in the banks of river Periyar. Excellent transport facilities and proximity to national highway, railway line , seaport, and airports as well. Companys products are basic chemicals and are considered to be the building blocks of chemical industry. TCC is a pioneer in the chlor alkali market and has created reliability credibility among the customers.

WEAKNESS TCC is a public undertaking. The major decisions of the company have to be approved by the government which delays the implementations of plans and there by causing organizational inflexibility. The major weaknesses are; Lack of profit motive leads to poor performance Employee cost is high compared to other firms (competitors) Large consumption of energy , 60% of manufacturing cost is electricity Raw salt is available in vicinity so transportation cost is very high

OPPORTUNITIES New project of synthetic rutile plant. Rutile companies are reaping big profit in the state due to the availability of raw material within the state. There is a high price in the international market for rutile and related products. Economic development of the country may results in higher demand for the product especially for chlorine in near future Proposal for a hydel project will benefit TCC and the power so obtained can be utilized for running the plants of TCC. Thus reducing the cost incurred on electricity.

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THREATS Competition from foreign countries High cost of production Higher in price of electricity The infra structure of the company is obsolete compared to others The import duty of central government is not fair and it caused periodic fluctuations in the price of the companys product.

CHAPTER 5 FINDINGS
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AND SUGGESTIONS

FINDINGS The major type of customer deal with TCC is pharmaceuticals, soap industries, insecticides, pesticides, paper industries and rayon industries. No strikes have reported for the last 10 years. It shows the relationship of workers and management as a good one. Pricing policy of TCC is an average one, according to the standards. The company has a flexible credit policy. They give credit facility up to 30-45 days and they are getting credit of 60 days from suppliers. New technology of membrane cell has the advantage of pollution free environment and also if bring about 30% reduction in electric power requirements. No major environment pollution has been reported for the past 50% years of operation.
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The strength of TCC is the quality of their products services and the delivery. Location preference, reference and quality are the major criteria for selecting manufacture. The customer have reported no rejection of TCC product which shows the product satisfactions. The company is depending heavily on electricity and around 60%of their product price is for this.

SUGGESTIONS The company must give some motivation to the employee in order to increase the production.. The company must take necessary steps to maintain the ratios at standard level. Improve the first aid facilities by providing free medicine and treatment . The company must activate the research and development cell in order to have new invention in this field. The company should conduct market research to find the movement of the products and to identify potential customers. One of the main raw materials is electricity which is an important factor of production of the company. So it better to go for a mini power plant of its own.

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CONCLUSION Travancore Cochin Chemicals Ltd, Udyogamandal is a state owned undertaking engaged in manufacture of basic chemicals like caustic soda, HCL, Chlorine, Sodium Hyptochlorine etc. These are required by various industries within and outside the state. TCCs products have national reputation for quality and the company gives high priority to customer satisfaction. It is an organic chemical company. TCC takes vital steps at the right time to make innovations in technological up gradations as well as organizational improvements, which helped it to face problems quite effectively and efficiently. Till 1995- 1996, company had recorded a steady growth in production as well as in sales. After that period even through the sales remain on an average. The company could not make any profits. This was due to the implementation of membrane cell technology in place of
68

mercury cell technology. The higher electric charges compared with other states also affected the profits of the company. TCC enjoys a lions share of the market in kerala and would continue to do so. The company started the salt up-gradation plant in 1998 which helps reduction in consumption of chemicals The Research and Development laboratory of the company helps in conducting a research with a new technical development. Several innovation and modernization schemes were implemented to achieve energy conservation, environment control and economy in inputs. As per the study conducted in the organization, the capacity of production is increasing and the company is moving in to more profitable stages. The days I spent at TCC and created a concrete impression in the development of my career. TCC is one of the leading Caustic Soda producing companies in India. I wish a great technical development and a prosperous future for TCC.

ABBREVATIONS MD - MANAGING DIRECTOR GMT GENERAL MANAGER TECHNICAL DF DIRECTOR FINANCE DGM (PJ) DEPUTY GENERAL MANAGER PROJECTS AGM (HR) ASSISTANT GENERAL MANAGER HUMAN RESOURCE AGM (MT) ASSISTANT GENERAL MANAGER MATERIALS AGM (M) - ASSISTANT GENERAL MANAGER MARKETTING AGM ( R ) - ASSISTANT GENERAL MANAGER RESEARCH AGM(S & PJ) - ASSISTANT GENERAL MANAGER SYSTEMS AND PROJECTS
69

AGM (CP) - ASSISTANT GENERAL MANAGER CAPACITY PLANNING AGM (TS) - ASSISTANT GENERAL MANAGER TECHNICAL SERVICE AGM (E&I) - ASSISTANT GENERAL MANAGER ELECTRICAL & INSTRUMENTATION AGM (E ) - ASSISTANT GENERAL MANAGER ENGINEERING AGM (OP) - ASSISTANT GENERAL MANAGER OPERATIONS M (HR & W) MANAGER HUMAN RESOURCE & WELFARE M ( P ) MANAGER PURCHASE M (S1) - MANAGER STORE 1 M (S2) MANAGER STORE 2 M (IC) MANAGER INVENTROY CONTROL SM SALES MANAGER DM (CS) DEPUTY MANAGER CATERING SERVICE DM (P) DEPUTY MANAGER PURCHASE DM (M) DEPUTY MANAGER MARKETING DM (SY) SEPUTY MANAGER SYSTEMS CE (PJ1) CHIEF ENGINEER PROJECT 1 CE (PJ2) CHIEF ENGINEER PROJECT 2 APO ASSISTANT PERSONAL OFFICER PRO PUBLIC RELATIONS OFFICER ASO ASSISTANT SALES OFFICER M (T & D) MANAGER TRAINING AND DEVELOPMENT CE (TS) CHIEF ENGINEER TECHNICAL SERVICE CE (FS) CHIEF ENGINEER FIRE AND SAFETY CE (E &MO) CHIEF ENGINEER ELECTRICAL AND MODERNIZATION CE (E&M) CHIEF ENGINEER ELECTRICAL AND MAINTENANCE CE ( I ) CHIEF ENGINEER INSTRUMENTATION CE (MP) CHIEF ENGINEER MANAGING PLANT M (PL1) MANGER PLANT 1 M (PL2) MANAGER PLANT 2 DM (E&M) DEPUTY MANAGER ELECTRICAL AND MAINTENANCE
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DM (E&MO) DEPUTY MANAGER ELECTRICAL AND MODERNIZATION DM ( I ) DEPUTY MANAGER INSTRUMENTATION DM (PJ1) DEPUTY MANAGER PROJECT 1 DM (PJ2) DEPUTY MANAGE PROJECT 2 DM (MP) DEPUTY MANAGER MANAGING PLANT DM (M) DEPUTY MANAGER MARKETING DM (U&S) DEPUTY MANAGER UTILITY AND SERVICE SE SENIOR ENGINEER PE PLANT ENGINEER ASS (PE) ASSISTANT PLANT ENGINEER CS&IA CO-SECRETARY AND INTERNAL AUDITOR EX.TR. EXECUTIVE TRAINEES

BIBLIOGRAPHY Human resource management Marketing management Organizational behavior www.tccKerala.com Annual reports of TCC Ltd. Shashi. K.Gupta & Rosy Joshi Philip Kotler Ashwathapa

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