CHAPTER 1.

TITLE

INTRODUCTION
1.1 BRIEF INTRODUCTION

PAGE NO 1

1.2 INDUSTRY PROFILE 1.3 COMPANY PROFILE 1.4 PRODUCT PROFILE 1.5 ORGANISATIONAL STRUCTURE
2.

OBJECTIVES AND SCOPE

2.1 OBJECTIVE OF STUDY 2.2 SCOPE OF THE STUDY 2. 3 METHODOLOGY OF THE STUDY 2.4 LIMITATION OF STUDY

DEPARTMENTAL STUDIES
3.1 MARKETING DEPARTMENT 3.2 FINANCIAL DEPARTMENT 3.3 PERSONNEL DEPARTMENT 3.4 PURCHASE DEPARTMENT 3.5 PRODUCTION DEPARTMENT 3.6 OTHER DEPARTMENTS

14

4.

FUTURE STUDIES

48

EXECUTIVE SUMMARY

Travancore Cement Limited is a public limited company under the control of Government of Kerala. The study entitled Organisation Study on the Travancore Cement Limited; Kottayam gives a partial exposure to the theory that learned. The data collected from the organization is through direct interview with various departmental heads. The departments of the company are working with corporate relationship and mutual understanding. Their working is taking place in different shifts. There are mainly 17 departments, out of which main departments are marketing department, finance department, personnel department production department, purchase department, and other departments such as general stores, maintenance department, electrical department, quality control department, transportation department, packing house, workshop, dredging department, cement paint department, water transport department, Time office, security department. The organization is engaged of highly professional and providing a decent living to its employees. The organizations maintain a high level of customer satisfaction. Their distribution is through stock list. It is a government of Kerala owned organization.

INTRODUCTION

1.1 BRIEF INTRODUCTION

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 21 st 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 after China, Russia, Japan and USA Industrial era in Kerala and 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 atleast a 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

1.2 OBJECIVES OF THE STUDY

The objectives of the study are:

To familiarize with the business organization Getting practical experience regarding the organizational function. To learn about the policies and functions of the organization. To understand the culture in the organization and its effect on employees. To get industrial exposure and experience. To understand the marketing and production methods. Interact with real environment of an organization. Study the structure of the organization. Know the efficiency and succession of the company. Study the functioning of the organization. Study the relationship between the workers, managers and top authority. Study the functioning of different department.

1.3 SCOPE OF STUDY

The study in mainly based on the details collected from each department. It provides a better understanding at functional level of each department i.e. purchase, materials, production, marketing, finance and human resource management. Each and every activities of the company is studied very carefully with the data available. Apart from that, I gained knowledge of the functioning of different departments and their interrelationship with each other. This study helped me to familiarize myself with the white cement segment.

1.4 METHODOLOGY OF THE STUDY

Research comprises defining and redefining problems, formulating hypothesis or suggesting solution, collecting, organizing and evaluating data at careful testing the conclusion determine whether they fit the formulated hypothesis.

METHOD OF DATA COLLECTION

1.4.1 Primary Data:

Primary data have been collected through discussion with the concerned executives of the company.

1.4.2 Secondary Data: Secondary data are those data which are gathered for some other purposes and are already available in the firms internal records and publications. They are mainly collected from old report like annual report of the company, company brochure, company documents, company journals and other manuals maintained by the company.

1.5 LIMITATIONS OF THE STUDY The Travancore cements Limited consists of five major functional departments and fifteen sub departments. Covering the entire areas of the department is a very difficult task as there were limitations in time. Some of the data were treated confidential and hence it was difficult to get the same. In addition most of the datas were collected through interviews and so the information is subjected to the bias of the individuals.

CHAPTER 2 PROFILES

2.1 INDUSTRY PROFILE 2.1.1 Cement Industry In India

Cement industry in India has made significant contribution to countrys 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 production.

Some of the important highlights of the Indian Cement Industry can be stated as follows: 1. The average capacity per kiln works out to be less than 17000 KN / day for the dry process systems and 4000 KN / day for the wet process system. 2. The energy consumption is substantially higher than that in the plants abroad. 3. The protection activities require improvement and updating. 4. The new technologies i.e. high efficiency separators, roll processors, vertical roller etc. have been introduced. 5. The per capita consumption in India is about 5 tonne, which is almost 1/4th of the world average. 6. The requirements such as better packaging materials, bulk containers and ready mix concrete technology deserves attention.

The origins of Indian cement industry can be traced back to 1914 when the first unit was set-up 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 per cent of the total capacity in the 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 Well Cement, Rapid Hardening Portland Cement, Sulphate Resisting Portland Cement, White Cement etc.

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 per cent in ACC, and taking over DLF Cements and Modi Cement; ACC taking over IDCOL; India Cement taking over Raasi 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 picked up 14.8 per cent 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 Ultratech Cement. Lafarge, the French cement major has acquired the cement plants of Raymond and Tisco.

2.1.2 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 250km. However, industry is heavily dependant 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 the 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.

2.1.3 Outlook Outlook for the cement industry looks quite bright. Given the sustained growth in the real estate sector, the government's 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.

2.2 COMPANY PROFILE

The Travancore Cements Limited was incorporated in the year 1946. The year of commencement of grey cement is 1949. The liscensed capacity of the plant is 50,800 Tonnes per annum. The master mind behind the setting up of this factory was Late Sir. C. P. Ramaswami Iyer, who was the

then Devan 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 a year. Since 1974, the company started manufacturing white cement alone, as the demand for white cement went up. During the last 58 years of 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

2.2.1 History The Travancore Cements Limited was incorporated in the year 1946. The year of commencement of business was also 1946. The company started manufacture of Grey Cement in the year 1949. The licensed capacity of the plant was 50,800 tones of Cement per annum. The mastermind behind setting up of this factory was that of late Sir C.P. Ramaswamy Iyer, the then Diwan of Travancore, who had realized the vital role of cement in the industrial development of Kerala. The company was promoted by the state of Travancore, in association with Tamil Nadu. Later the Government of Kerala acquired the company with a share of 51.33% and about 33.33% share with the Super Pharma Private Ltd., which belongs to the company group. The share of the company has been listed in the stock exchange of Cochin & Chennai. The company was promoted by M/s Essel Ltd., Mumbai and Technology tie up was made with M/s F. L. Smidth & Co. Denmark. The Travancore cements Ltd. Is one of the first project making cement companies in Kerala.TCL is the only public sector (Kerala Government undertaking), which manufactures and market white cement and cement paints. During 1959, the company diversified into the production of white Portland cement. The installed capacity for the production of White Cement is 30000 tonnes per annum. Till 1974, the Company was manufacturing both White Cement and Grey Cement in the same plant, distributing the production of the

two, over certain periods in a year. In 1974, the company switched over to the exclusive manufacturing of White Cement, as the demand for White Cement went up and the government of Kerala took over the management of the company which was firstly under private management. At that time it had monopoly over the marketing. During the last 54 years of its existence, TCL has diversified its activities to related areas by adding ''Vembanad' brand ordinary Portland cement, 'Super Shelcem' brand Cement Paint and 'Shelprime' dry Cement Primer besides 'Sheltex' Acrylic Emulsion Paint for interiors and exteriors to its products range. The Travancore Cements Limited is one of the only two companies in the world manufacturing White Cement from a raw material other than conventional limestone. The other company is in South California, U.S.A. The main raw material of TCL is lime shell, which is dredged out of Vembanad Lake, one of the backwaters of Kerala; hence the brand name is Vembanad White Portland Cement. As it does not contain any magnesium oxide, the White Cement made out of lime shell is highly durable and superior in quality. The Travancore Cements Limited employed the wet process technology on the fully imported machinery of F. L. Smidth & Co. Denmark. Wet process facilitates total homogenization of raw materials and thus ensures high consistency in quality. As a result of this, Vembanad White Cement is having higher whiteness, durability, strength and quality.

2.2.2 Location The cement plant of TCL is situated on the bank of Kodoor River and on the side of the State Highway, M.C. road, and 4km away from the town of Kottayam in Kerala. The typical Location of the plant makes it accessible by road as well as by water.

2.2.3 Milestones Started the production of Vembanad Grey cement from lime shell in August 1949. Started production Vembanad White Cement from lime shell in 1959 Grey Cement production stopped in 1976. Diversified into Cement paint- Super Shelcem production in 1977. Celebrated Silver Jubilee in 1982. Became a Government Company in April 1989. Celebrated Golden Jubilee in 1997. Launched Dry Cement Primer 'Shell prime' in January 2000. Diversified into Acrylic Emulsion Paint Sheltex for exteriors & interiors in April 2000.

Diversified into Grey cement production from brought out clinker in 2000. Became an ISO 9002 company in December 2000. Company started an HRD center in 2002 Launched Vembanad Wall Care Putty in 2008 2.2.4Objevtive Of The Company

The main objective of the company is engaged in the production of Vembanad White Portland Cement. It is the first and foremost product of TCL, which is the best white cement available in the country in its quality. Now the company is also engaged in the production of cement paint known as Super Shelcem, which is available in a wide range of colors of 24 shades. 2.2.5 Competitors Super snowcem Dukecem. Surfacem. Acc white cement. Birla white cement. J.K white.

2.2.6 Promoters Of The Organization

The company was run under the private management until 1974. Subsequently the government of Kerala took over the management. Now the government is holding 50.13% of the equity share capital. The Pyramid group of company is holding another 25% of shares and the remaining shares are held by general public.

2.2.7 Vision And Mission

Vision Statement To be a leader in the Indian Cement industry and providing customer delight and enhancing shareholders value.

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. High quality technology and superior products. Consistent production through harmonious industrial relations. Competitive advantage. To widen the distribution network and strengthen the field service organization.

2.3 PRODUCT PROFILE The Travancore Cements Ltd is producing four types of products and they are: White Portland cement under the brand name VEMBANAD , cement paints with a range of 40 shades under the brand name SUPER SHELCEM, PUTTY cement paint primer under the brand name "Shel Prime", Emulsion paint under the brand name "SHELTEX" and wall putty ender the brand name VEMBANAD WALL

1.Vembanad White Portland cements

TCL manufactures the best white cement in the country and its quality is at par with that of

the best available in the world market. This can be attributed to the fact that Vembanad white cement is manufactured using lime shells and it accounts for its superior whiteness as compared to other brands. Today the company enjoys the highest 8042 e-1976 specification. White cement is quick drying; possess high strength and superior aesthetic values. It is used for floor finish, plaster and ornamental works.

2.Super Shelcem Cement Paint The Travancore Cements Ltd started manufacturing cement paints under the brand name Shelcem during 1977. 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. Cement paint is water based paint widely used for painting buildings, both components an oxide extender, non fading oxide pigments, hardening agents and exterior interior. Shelcem, unlike other cement paints, does not require water curing after first and second coat. Only initial wetting of the surface is necessary. This makes Super Shelcem ideal for exteriors of multi storied buildings and sky scrapers. Super Shelcem carries ISI marks and is available in a wide range of colours of total 40 different shades in the market.

3. Shell Prime Dry Cement Primer In order to mark the new millennium, the Travancore Cements Limited launched a new product, cement paint primer under the brand name "Shel Prime". It is a dry cement primer available in 1kg. Packets. The range is Rs.25/Kg.

4. Sheltex Emulsion Paint The company launched another new product "Sheltex" cement paint. It was launched in April 2000. The basic raw materials include acrylic based pigments and bonding chemicals (Titanium compounds). It is used for both exterior and interior painting purposes. The product is available in 2 packages 11 liters and 4 liters.

5.Vembanad Wall Putty Vembanad wall putty has more coverage than any other dry wall putty in the market. The object of the company will be to offer putty of the highest quality, giving the smoothest finish, highest coverage and durability. It is available in 20 kg and 5 kg packing.

2.4 ORGANISATION STRUCTURE

When we look to this organization we can see it is consisting of different department and also each department have departmental heads. The service manager is responsible for dredger, civil and sanitary, water and general transport, workshop, and electrical departments. The production department is responsible for the department of white cement plan, kiln, packing house, shelcem, lab and quality control. The maintenance manager is responsible for marketing control, purchase and store and shelcem department. The finance manager is responsible for the department of accounts. Finally the secretary is responsible for the time office, personnel department, medical department, and office and guest house.

Organization Chart

Board of Directors

Chairman

Managing Directors

General Manager

Function Manager

Production Manager

Maintenance Manager

Company Secretary

Marketing Manager

Account Officer

Maintenanc e Engineer

Dy. Maintenance Manager

Personne l Officer

Marketing Supdt.

Staff

Joint Manager

Store Supdt.

Staff

Staff Observation

Foreman, Worker etc.

Staff

CHAPTER 3 DEPARTMENTAL STUDY DEPARTMENTS Departmentalization is a method of arranging activities to facilitate the accomplishment of organizational objectives. The organization process of determing how activities are to be grouped is called department. The departments show the horizontal different of an organization. The main departments are: MARKETING DEPARTMENT

FINANCE DEPARTMENT PERSONNEL DEPARTMENT PURCHASE DEPARTMENT PRODUCTION DEPARTMENT OTHER DEPARTMENTS

The Board of Directors consists of five persons of which one is full time Managing Director. Under the Managing Director we have: Service Manager, Production Manager, Maintenance Manager, Financial Manager and Secretary. The service 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, Shelcem, lab and quality control. The Maintenance manager is responsible for the departments of marketing control, purchase, store and Shelcem. 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.

3.1 MARKETING DEPARTMENT

General Manager (Marketing)

Chief Manager (Cement Paint)

Marketing Manager

Administration

Sales Representatives

Junior Executive

Sales Representatives

Marketing Activities TCL has a well established marketing department. There is an efficient sales force which is under the Marketing Manager. The whole system comes under the General Manager. TCL has got 14 sales representatives throughout Kerala. Marketing Distribution Channels Company Stockiest Number of Dealers/Stockiest of TCL products Depots Stockiest Dealers Customers

TCL has 30 Stockiest in Kerala.

TCL has 60 Stockiest for White cement in Kerala. TCL has 300 Dealers for Paint in Kerala. TCL has 2000 Dealers for White cement in Kerala. TCL has 7 Stockiest for White cement in Tamil Nadu. TCL has 50 Dealers for White cement in Tamil Nadu. Sales Promotion TCL has an advertisement budget of 25 lakhs per annum. Since the amount is too small the company is advertising at low level. Other promotional activities include conducting dealers meetings once in two years. In addition to these the company offers various incentive schemes for its dealers according to their sales performance. Due to very low advertisement budget the company does not engage in any large scale type of advertisement activities. The company occasionally engages in advertisement through newspapers, magazines etc. The main modes of advertisement are displaying boards which are positioned where they get maximum attention. They also use Asia net cable vision, wall painting etc. The current year Board of directors allowed 50 lakhs for advertisement Competition The company is facing tough competition from the white cement from internal manufacturers and also from imported white cement. JK White, Birla, RKC etc. are the major competitors in the white cement sector. In the cement paint sector, there are about 14 brands to compete with Super Shelcem. The major competitors are Durocem, Snowcem etc. The companys new product Sheltex Acrylic Emulsion Paint has only 5% market share and facing competition from majors like Apex, Excel etc. Reason For High Price The production process of TCL is very old and it is known as WET process and is very expensive. This is the only company which is using this old process. The other companies are using DRY process. This is comparatively less expensive. So the other companies can reduce price. Another reason is the raw materials particularly lime shell and white clay is scarce. So these products are priced very high

Discounts Allowed By T C L TCL gives trade discounts of 10% and cash discount of 4 % for purchase of 250 kg. and above,thecompany allows 3% discount on freight allowances and 3% on special discount. In every three months, the company gives 1% quantity discount for 200kg, 2% for 500kg. Procedure For Marketing And Distribution

The company has been carrying out production oriented strategy because of the monopoly of the Vembanad brand. With the entry of competition the need for marketing oriented strategy is analyzed. The company was mainly depending on distributors in various regions. TCL offers no credit facilities for white cement. It offers 45 day credit for cement paint. The payment is made in advance by demand draft in case of white cement and by cheque in case of cement paint. The company offers commission in the form of trade discount in their stockiest.

3.2 FINANCIAL DEPARTMENT

Board of Directors

Managing Director

Chief Manager Finance

Assistant Manager

Office Staff

The finance department maintains all the accounts of the various departments in an organization. It is the duty of the finance department to receive money and make payments on behalf of the company. It also prepares the annual budget according to which the expenses of the company are monitored. The finance department is a vital part in an organization, as without finance the day to day activities of the company will not function in a smooth and rapid way. It is the core of the organization. The cash section and account section also forms part of finance department. The recording of day -to-day transactions routine functions like sales tax, payments and receipts of cash, Cheque etc comes under the purview of

accounts section. The accounts section also undertakes the employees payroll function. The cash section deals with the disbursement of cash.

Functions Of Finance Department Financial forecasting and planning Acquisition of funds Investment of funds Maintaining proper liquidity Assigning the Chief Accounts officer and others Accounting of all receipts and payments, cash at bank, sales etc. Preparation of annual accounts and other periodical report and statements Checking of wages and salaries Regular payments of statutory dues like Provident Fund, Sales tax etc. Furnishing necessary records relating to finance cash to Managing Director or Chief Accounts Officer.

Financial Management is that specialized functions of general management which is related to the procurement of finance and its effective initialization for the achievement of common goal of the organisation. It deals with each and every aspect of financial activity in the business. It includes planning and control of financial resources. It is also concerned with finding out various sources for raising capital for the firm. The source must be suitable and economical for the needs of the business. The most appropriate use of such funds also forms a part of Financial Management. Finance is indispensable to facilitate efficient and effective operation of business enterprise. In this context, effective financial management holds key to success in todays highly competitive world, modern financial managers are assigned five roles: Planning of funds Raising of funds Allocation of funds Control of funds

The finance department consists of Chief Manager, junior manager and Office Assistants. The accounts of Tcl are controlled through the budget presented and passed by the Annual General Meeting of the TCL. The Accounts department prepares Trial Balance, Profit & Loss A/c and Balance Sheet and send it to the manager.

There are mainly three sectors of finance department of TCL. They are 1. Accounts Section 2. Finance Section 3. Cash Section 1. Accounts Section The most important task done by accounts section is the recording of day to day accounts. Routine accounting functions like sales tax payment, receipts and payment of cash; cheques etc. come under the preview of the accounts section. The employee payroll function is also undertaken by the accounts section of the finance department. 2.Finance Section Finance section is mainly concerned with the maintenance of accounts. The various financial statements are kept in the computer as well as in the manual form. 3. Cash Section The cash section is concerned with the disbursement of cash.

Duties Of Finance Department i. ii. iii. iv. v. Overall financial control Monitory decision making in consultation with Managing director Finalization of accounts Budget preparation Control overall matters relating finance in the organisation

The accounts and finance departments have to ensure that the salaries due to the employees are paid in time. The department is also concerned with the preparation of budget and budgetary control of the concern. The department has to ensure that all the entries are properly posted in the books of accounts.

The main accounts that are kept by the accounts department: i. ii. Cash book General ledger

Scope Of Financial Management It can be summarized as follows:

a) Estimating financial Requirements The first task of a Finance Manager is to estimate short term and long term financial requirements of his business. For this purpose, he will prepare a financial plan for the present as well as for the future. The amount required for purchasing fixed assets as well as needs of funds for working capital have to be ascertained. The estimations should be based on sound financial principles so that neither there are inadequate nor excess funds with the concern. The inadequacy of funds will adversely affect the day to day working of the concern whereas excess funds may tempt the management to indulge in extravagant spending for speculative activities.

b) Deciding capital Structure Capital Structure refers to the kind and proportion of different securities for raising of funds. After deciding about the quantum of funds required, it should be decided which type of securities should be raised. It may be to arise finance through long term debts Even here if gestation period is longer, the share capital may be most suitable. Long term funds should be employed to finance working capital. Entirely depending upon over drafts and cash credits for meeting working capital needs may not be suitable. A decision about various sources of fund should be linked to the cost of raising funds. If cost of raising funds is very high, then such sources may not be useful for long. A decision about the kind of securities to be employed and then proportion in which these should be used is an important decision which influence the short term and long term financial planning of the enterprise.

c) Selection Of Sources Of Finance After preparing a capital structure, an appropriate source for finance is selected. Various sources from which finance may be raised include share capital, debentures, financial institutions, commercial banks, public deposits etc. If finances are needed for shorter period, then banks, public deposits and financial institutions may be appropriate, on the other hand, if long term finances are required, and then share capital and debentures may be useful. If the concern doesnt want to tie down assets as securities, then public deposits may be the suitable source. If the management doesnt want to dilute ownership, the debentures should be issued in preference to shares. The need, purpose, object and cost involved, may be the factors influencing the selection of a suitable source of financing.

d) Selecting a Pattern Of Investment When funds have been purchased, then decision about investment pattern is to be taken. The selection of an investment pattern is related to use of funds. The funds with have to be spent first on fixed

assets and then an appropriate portion will be retained for working capital. While selecting a plant & machinery, even different categories of them may be available. . The decision making techniques such as capital budgeting, opportunity cost analysis etc. may be applied in making decision about capital expenditures. While spending on various assets, the principles of safety, profitability and liquidity should not be ignored. A balance should be struck even in these principles. One may not like to invest on a project, which may be risky, even though there may be more profits.

e) Proper Cash Management Cash management is also an important task of finance manager. He has to assess various needs of the company at different times. He has to make arrangements for cash. Cash may be required a) to purchase raw material b) to make payment to creditors c) to meet wage bills d) to meet day to day expenses. The usual source of cash may be a) cash sales b) collection of debts c) short term arrangement with banks etc. The cash management should be such that neither there is a shortage of it nor it is idle. Any shortage of cash will damage the creditworthiness of the enterprise. The idle cash with the business will mean that it is not properly used. Cash flow statement is regularly prepared so that one is able to find out various sources and applications. All these information will help in efficient management of cash. 3.3 PERSONNEL DEPARTMENT

Managing Director

General Manager

Chief Manager

Junior Manager

Office Assistance

Functions Of Personal Department

To maintain good relationship between the employees To look into the welfare of the employees To maintain leave register Attendance making Overtime confirmation

It is the department that is connected to other departments in TCL. This department is headed by Joint General Manager. Under him Joint Chief Manager followed by Junior Executive and Office Assistants. This department does the recruitment and selection of the personnel. Another important function of the personnel department is to look into the welfare of its employees. Time office comes under this department. The function of the time office is to maintain leave register, attendance making, over time confirmation etc. The above data is forwarded to the accounts department for accounting the wages of the employees.

Recruitment & Selection

Workers The workers are selected through PSC test and physical test. Every worker is liable to be transferred from one department to another and one job to another according to the experience of work in the factory.

Office Staff Recruitment of office staff is done through direct application and through employment exchange. Selection is mainly based on written test and interview. But it is also done according to the discretion of management. Selected persons will have to undergo training, which is usually six months. Managerial Level

Recruitment for managerial level is done through direct application and through employment exchange. Selection is mainly based on written test and interview. Selected persons will have to undergo training for more than one year.

Salary And Wages Salary and wages paid to the employees are determined on an agreement between CMI and Trade Union. In TCL pay revision is done every 4 year.

Leave Pattern There are 14 days of casual leave and 12 days of sick leave. For non staff workers 18 days of privilege leave are allowed and for Officers it is 30 days.

Trade Unions The recognized trade unions in the company are : 1. The Travancore Cement Workers Union 2. The Kerala Cement Labourers Union 3. The Kottayam Cement Employees Union 4. The Kottayam Cement Employees Congress AITUC CITU INTUC

Working Conditions Proper working conditions are maintained. Facilities like bathroom, toilets at all plants and in offices. Rest rooms and seating facilities are provide are provided

Canteen A fair price canteen is operating at the premises. The employees are given Rs 25 per day of attendance as canteen allowance and maximum of Rs 750 per month.

Transportation Free transportation facility is provided to employees for coming and returning after duty. Transportation facility is also provided to the children of the employees for attending the educational institutions in and around Kottayam.

Quarters Facility

A limited numbers of employees are provided with quarters with free electricity and water. Very nominal rents are charged for them. Educational Allowance The company provides this facility for the children of permanent employees. They are getting an amount of Rs. 300 a month.

Recreation Facility Recreation facility for indoor games like shuttle, badminton, carroms etc. are provided. Reading room facility is also provided with newspaper and periodicals; television is also provided with cable facility

Welfare Facilities Provided By The Company There were several welfare measures provided by the company. Now TCL is running under huge loss. So the company is not able to provide the benefits to the employees as in the earlier years. They were provided with the following benefits: Uniform Footwear allowance Umbrella Raincoat Washing soap & toilet soap Turkey towel Medical reimbursement Company scholarships Tour programmers Factory day compliment Special advance

 Work schedule

Two wheeler / Cycle loan Car/ computer loan

The office time of TCL is from 9.00 a.m. to 5.00 p.m. on working days. On Saturdays, office time is till 1.00 p.m. The factory is working on shift basis. There are 3 shifts in the factory. 1st shift: 12 midnight to 8.00 pm. 2nd shift: 8.00 am 3rd shift: 4.00 pm HRD Center As part of ISO specification, one HRD center was established for training workers to 4.00 pm to 12 midnight

Employees Strength(As on 01.01.2009)

Total staff Total operatives Total strength Officers Casual workers Grand total

= =

136 male + 31 female 286 male + 26 female

= 167 = 312 = 479 = 26 = 5 = 510

3.4 PURCHASE DEPARTMENT

General Manager (Operation)

Joint Chief Manager (Purchase)

Junior Manager (Purchase)

Junior Executive Officer

Office Assistants

Office Assistants

Functions Of Purchase Department in T C L Placing order Inviting quotations Correspondents

To perform the functions effectively, the purchasing department has to follow the following procedure. a. Purchase Requisitions The purchase officer does not initiate any action for purchasing of materials on his own record. With the help of purchase requisitions, the purchase officer come to know the types of materials needed by the organization. A purchase requisition is a from used as a formal request for the purchasing department to purchase materials. b. Exploring The Sources OF Supply & Selecting The Supplier

A source of supply of materials is to be selected after the receipt of purchase requisition. In TCL, the process of choosing the supplier is not a hard task. The store keeper generally mentions the name of current suppliers, their price quotations and the purchase department also has a series of good suppliers. Choosing the right supplier from the suppliers list involves a process of comparative statement of purchases. It is a statement prepared by the purchase department. c. Purchasing Order After choosing the supplier, the purchase department prepares the order for the supply of stores. The order is a written authorization to the supplier to supply the particular material or materials. It is the evidence between the buyer and the supplier having the terms and conditions of the purchasing order.

d. Receiving & Inspecting Materials In large concerns, a separate receipt & inspection department independent of stocking location should be set up to receive and inspect the materials. But in small concerns, the work is done by the store keeper. In TCL, the stores department makes the general purchase only. When goods are received in stores, the consuming department is informed and the personnels from this department come to stores and inspect the quality, quantity etc. e. Checking & Passing Bills Of Exchange After checking, the bills are passed. Generally, the payment terms of TCL are Against invoice or acceptance of stock a minimum 15 days credit In case of monopoly suppliers, they are sent or paid through banks. Advantages Of Purchase Department In T C L 1. Because of centralized purchasing of materials, favourable terms like trade discount or economic in transportation cost can be obtained, because quantity will be large. 2. The purchase department is staffed with highly paid officials who are experts in the art of purchasing the material. Specialized knowledge and skill of these persons can be utilized. 3. All records with regard to purchase department is kept under the supervision of the purchase officer. 4. This department helps in achieving uniform purchasing policies, practices and procedures. 5. It avoids duplication of efforts and is helpful in achieving standardized products.

Vendor Selection

The TCL has a main list of suppliers for all items it have to purchase. The company invites tenders through advertisements in the newspapers. The suppliers give quotations and after a detailed study of the concerned department, the supplier should be selected and the order is placing.

Vendor Rating A vendor is rated according to his monopoly in the market, brand equity of the products, his established dealings with other reputed organizations. There is a vendor evaluation committee which evaluates the vendors. The committee consists of officers from concerning finance and material departments. Vendor who is rated below 50% will be removed from the lists. Vendors rated between 50% & 75% are advised to improve their quality. Vendor Re-evaluation Rating The suppliers of raw material who are re-evaluated periodically by the company. i Vendor supplying all raw materials for white cement and cement paint. ii Packing material

iii Critical spares and machinery

PRODUCTION DEPARTMENT

General Manager (Operator)

JCM Production & Service

Dy. Manager (Kiln)

Junior Manager

Junior Executive)

Charge Hands

Senior Machine Operator

Machine Operators

Helpers

Functions Of Production department The production department is the heart and soul of the TCL. It is here that white cement and cement paint are produced. The uniqueness of white cement products is that produced from the lime shell, extracted from Vembanad Lake. This gives the cement much more whiteness compared to other brands. The major raw material is lime shell. The production department is the heart and soul of TCL. The company produces white Portland cement and cement paints. The production and service department controls and coordinates the production process. The production can be divided into three stages namely: The slurry preparation, Clinker making and grinding. The numbers of workers employed in these stages are 75 with 17 in shift basis.

Production Process Of VEMBANAD White Cement The raw materials used for the production of white cement are lime shell, white clay, white sand and gypsum. The basic cement making process consists of collecting the raw materials, grinding them to a fine stage, blending them to a uniform composition and heating them to the point of incipient fusion when the cement compounds are formed. Portland cement is the product obtained by cooling and grinding the clinker thus formed with gypsum to a fine powder.

Raw materials Vembanad white cement is manufactured from natures gift of rare raw materials which are unique in consistent purity. The company is using high quality raw materials and net process in order to maintain quality of its products. The main raw materials are lime shell, white sand, white clay and crystal gyps.

a) Lime Shell The main raw material lime shell is procured from under water deposits of Vembanad Lake. Chemical analysis of lime shell reveals that almost 99% accounts for calcium carbonate (CaCO 3). While the presences of usual impurities like iron and magnesium compounds are negligible in significance. Vembanad white cement has the distinctive feature of being the only cement that is manufactured from lime shell.

b) White Clay

White clay or crude china clay is obtained from southern parts of Kerala, particularly from Trivandrum District. These white clay deposits are known for their purity and high ceramic properties. The milky white clay, which is in paste form, that go in to manufacturing process of Vembanad white cement, is almost 85% pure Hydrated Aluminum Silicate.

c) White Sand The white sand is obtained from coastal areas of Chertala in Kerala which accounts for purity up to 95%.

d) Gypsum Helps to restore the setting action of cement and enhances the initial setting time of cement.

Stages Of Production Process Preparation of slurry Clinker making Clinker grinding There are nine different processes under the main stages. They are

Dredging The main raw material for the production of Vembanad White Cement is lime shell an under water 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 galloon capacity and one mechanical dredger, Rudger of 2000 galloons capacity. The dredger can cut the lime shell around 40 ft. maximum depth. The dredger works on two powerful engines, a dredger pamper engine and an auxiliary engine.

i Dredger Operation `The dredger is placed anywhere in the lake using a spud which is then at lowered position while the other spud is at the raised position. The cutter is about 10m. in length. It can cut the shell to a maximum of 40 ft. from the water level. For the purpose of cutting, the cutter is placed downwards by using a winch when spud 1 is centered which is loosened and the cutter moves in clockwise direction. Similarly when the spud 2 is centered, the cutter moves in anticlockwise direction and cut the shell. After primary washing, the shell is transferred to the barge.

ii

Unloading The shell dredged is brought to the plant in barges through lake. Shell in barge is diluted

with about 60% of water by means of a diluting pump. A sucking pump draws water along with the shell to the receiving tank near the rotary grill of the screening plant. The shell is then passed through the rotary grill and waste materials are washed out during its rotation. Cleaned shell is either passed to the belt conveyors through hoppers or stored outside depending on the requirement of raw materials for the process. There are two rubber conveyors [Conveyor 1 short & straight, Conveyor 2 long & inched for conveying shell to the ball mill hopper.

iii Wash Mill Before actually used for process, clay is mixed with water. This work is done in a wash mill. Clay is put into the mill and about 65% of water is also added during grinding. During the work in the wash mill, clay is made to slurry and is pumped to storage tank known as silo. From silo, it is taken when the process is required.

iv Shell Sand Grinding Mill Slurry is a mixture of shell, sand and clay with 40% of water. For the preparation of slurry, two grinding mills are used. Roughing mill known as ball mill Finishing mill known as raw mill Ball mill is a cylindrical shell of welded metal plates. The shell along with the required amount of white sand and water is fed to the ball mill by a rotating feed table. When the mill rotates the materials are crushed down to small particles while it passes through the ball. The materials coming out of ball mill is diverted to a hammer screen by means of a slurry elevator. Fine material coming out of the hammer screen is fed to the raw mill. The coarse material is returned to the ball mill for further grinding.

v Slurry Making (Raw Mill)

The raw mill is rotated by a motor at a constant speed while passing through the mill, the fine materials discharged from ball mill and clay pumped from clay silo are finally ground and comes out as a pasty material known as slurry which then flows to the slurry pit.

vi Slurry section Slurry discharged from the raw mill is stored in silos by means of pumps. The chemical composition of slurry will be adjusted at this stage. There are three silos for storing the slurry. From these silos, slurry is pumped to the slurry basin. In the basin slurry is constantly agitated with compressed air & stirring mechanism. From this basin, slurry is taken for burning in the kiln.

vii Clinker Making(Rotary Kiln) Kiln is a cylindrical steel shell lined with refractory bricks mounted to base on roller supports so that it can be rotated. The kiln is having a length of 285 ft. with diameter of about 9ft. During the burning process, slurry passes through three stages. Drying zone Calcinations zone Burning zone viii Clinker Grinding There are three cement mills A, B & C with clinker grinding capacity of 60 tonnes for A, 50 tonnes for B & C. The B & C mills are identical. During grinding, small quantity about 3 4% gypsum is added. Gypsum controls initial setting time of cement.

ix Packing & Despatching The white cement stored in the silos is packed in bags in the packing house. For the free flow of cement from silo & hopper, compressed air is used. When the bag is filled with 50 kg, material discharged from the spout is automatically transferred to the truck through a fixed- point belt conveyor and a movable belt conveyor. The filled bags fall down from the spout to the wire net conveyor, will be transferred to a truck through a fixed point belt conveyor and a movable belt conveyor. Outstanding Qualities Of VEMBANAD White Cement Brilliant whiteness Lowest magnesium content

High strength Super soundness Setting properties High durability Ideal one for manufacturing cement paint

Machineries And Equipments Required For The Manufacturing Process 1. Dredging And Storage Of Lime Shells Dredger Diluting pump Gravel pump Receiving tank Rotary filter Conveyors Storage tanks (Silos)

2. Processing Of Lime Shell, White Sand & White Clay Water pump Wash mill Clay pump Ball mill Elevators Lifting service Slurry pump Slurry silos 3. Processing Of Clinker Rotary Kiln High pressure screw pump Hammer crusher Shaking and bucket elevators Clinker silos 4. Processing Of Cement Cement mills Belt and screw conveyors

Cyclone separators Dust collectors Air compressors Cement silo

3.6 OTHER DEPARTMENTS 3.6.1 GENERAL STORE GENERAL STORS MAINTENANCE DEPARTMENT ELECTRICAL DEPARTMENT QUALITY CONTROL DEPARTMENT TRANCEPORTATION DEPARTMENT PACKING HOUSE WORKSHOP DREDGING DEPARTMENT SECURITY DEPARTMENT CEMENT PAINT DEPARTMENT TIME OFFICE

Purchase Manager

Store keeper Store keeper

Assistant store Assistant store keeper keeper

Helper
Helper

Sweeper

Functions Of General Stores Department

To store the raw materials for different departments To prepare the purchase order To prepare the stores records such as Bin card and Karade - X card

General stores is the department for storing the raw materials. The materials are collected as per the order made by the department, which is known as purchase order. Advantages Of Centralized Stores In T C L Better control can be exercised over stores because all stores are housed in one department. Better layout of stores is possible. Investment in stock is minimized. Economy in cost. Economy in staff and concentration of experts in one department will lead to development in high technical skills. Less botherisation in inventory checking as all the stores are located in one place.

Stores Records The Bin card and Karade X card are the two important stock records that are kept in TCL for making a record of various stores. 1. BIN CARD A bin card makes a record of the receipts and issue of materials and is kept for each item in the stores. Quantity of materials received are entered in the receipt column and the quantity of stocks issued are recorded in the issue column of the bin card and the balance of the quantity of stock is taken after every receipt or issue , so that the balance can be seen readily at any time. A bin card is usually hanged up or placed in shelf, rack or bin where the materials have been kept.

2. KARADE X - CARD This card is used in TCL by store keeper in addition to the bin card for storing the list of stock of items. TCL doesnt maintain a stores ledger now, instead of this all the details are stored using software in the computer. The existing system is a FoxPro based system.

3.6.2 MAINTENANCE DEPARTMENT

The company has 1 workshop under the control of the mechanical maintenance department. All machinery works and repairs are undertaken in the workshop.46 members are there in the workshop.

Mechanical section All the mechanical works are undertaken by the mechanical section of the maintenance department. The company has a workshop under the control of this department. Total number of workers in the mechanical section is 72, out of which 4are charge hands and a foreman and an attender. The rest include officers and other skilled workers.. There are 6 section of maintenance (workshop).

1. Welder 2. Blacksmith 3. Automobiles 4. Marine engineering section 5. Lathe section 6. Fitter section 7. Tool Section 8. Diesel Mechanic Functions Of Maintenance Department -

- 1 senior & 8 welders. - 1 senior & 3 others. - 1 senior & 3 others. -1 senior & 4 others. -1 senior & 8 others. - 2 senior & 13 others.

Operation of electrical equipments & machiner Maintenance of electrical equipments & machineries

Maintenance of equipments

Annual maintenance

Preventive maintenance

Half yearly maintenance

Quarterly maintenance

Monthly maintenance

Fortnightly maintenance

Weekly maintenance

Daily maintenance

Hourly monitoring

3.6.3 ELECTRICAL DEPARTMENT This department deal with all the works connected with the electrical equipment, power links and other allied activities. Consumption of electricity per day is 20000 units. The electricity bill in a month is Rs 25 lac. If the plant is not working or functioning the company has to pay Rs 3 lac. This is a fixed charge set by the government. The company has its own substation for power supply. The total number of

employees in the electrical maintenance section is 24, out of which 12 employees are concerned with electrical maintenance of land and the other 12 undertake the maintenance work of the power plant. The

main activities undertaken in the electrical section of the maintenance department can be discussed as follows, The electrical section undertakes mainly three types of maintenance works .They are: 1. Break down maintenance. 2. Preventive maintenance. 3. Shut down maintenance. 1. Break down maintenance In case of any break down of the machineries in the production departments information regarding the break down is given to the maintenance department, and subsequently maintenance workers are sent to the production department to solve the machine failures. 2. Preventive maintenance Under this activity, a team of maintenance workers is sent directly to the production plant to check out whether there is any failure in the machinery or not. 3. Shut down maintenance When the plant is shut down, the employees in the production department sent a letter to the maintenance department to solve failures.

3.6.4 QUALITY CONTROL DEPARTMENT

Production manager

Junior Manager (Quality control)

Junior Manager ( Lathe)

Junior executive (Lathe)

Assistant Chemist

Junior Executives ( Chief Lathe) Gauger Junior Executives ( Lathe)Tester Junior Executives ( Sample boy Lathe)

Helpers Junior Executives ( Lathe) Junior Executives ( Lathe)

Functions Of Quality Control Department To test the quality of raw materials To whether the product involves the right proportion of raw materials To maintain the quality of the products

Unlike other government organizations, where quality is secondary, at TCL quality is being given the prime position. The ISO 9002 certification is a proof for enduring the quality commitment of TCL. TCL has its own laboratory which continuously striving to maintain the quality of the products. There are three levels of testing conducted in the laboratory. They are:

a) Raw material Testing Raw materials are tested for ensuring the quality of products even before manufacturing. b) Process Testing Process testing is done before the grinding of lime shell, sand and clay. c) Intermediate Testing In this testing, slurry is tested for finding out whether it contains right proportion of lime shell, sand and clay. Then slurry is taken to kiln for burning.

3.6.5 TRANSPORTATION DEPARTMENT

Chief Manager (M&E)

Deputy Manager (Stores) Transport Spurned

Charge hand

Fitter

Barge crew

Functions Of The Department Staff conveyance Free transportation facilities are given to the staff to come to the office. For the purpose the company has two buses of their own. It is available to workers in all shifts. Transportation facilities to employees children As a welfare measure, free transportation facilities are provided to employees children. For bringing them to the schools in and around Kottayam, this facility is available. For providing goods to customers

If a person purchases one of the products from the company, free transportation facilities are provided for bringing the same and he will get it at the premises of his hous

3.6.6 PACKING HOUSE

Packing house in charge

Assistant in charge

Supervisor

Fitter

Packer

Helpers

Here cement is drawn from storage spoils and packed in the paper bags by automatic machines and dispatched.

3.6.7 WORKSHOP

Officer

Foreman

Charge hand
Functions

Maintenance of machinery parts

Repairing of spare parts, pipe line, oil line, vehicles etc.

The company has one workshop under the control of the mechanical maintenance 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 the mechanical maintenance department.

The repairing of machinery spare parts, pipe line, oil line etc. and the machineries related with plant are undertaken in the workshop. Dredger and barge is also repaired here 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.

3.6.8 DREDGING DEPARTMENT The main raw material for the production of Vembanad White Cement is lime shell an under water 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 gallion capacity and one mechanical dredger, Rudger of 2000 gallions capacity. The dredger can cut the lime shell around 40 ft. maximum depth. The dredger works on two powerful engines, a dredger pamper engine and an auxiliary engine. Dredger Operation The dredger is placed anywhere in the lake using a spud which is then at lowered position while the other spud is at the raised position. The cutter is about 10m. in length. It can cut the shell to a maximum of 40 ft. from the water level. For the purpose of cutting, the cutter is placed downwards by using a winch when spud 1 is centered which is loosened and the cutter moves in clockward direction. Similarly when the

spud 2 is centered, the cutter moves in anticlockwise direction and cut the shell. After primary washing, the shell is transferred to the barge.

3.6.9 SECURITY DEPARTMENT

The department is mainly concerned with the security and control of the company. There are 28 employees working in the security department on shift basis.

3.6.10 CEMENT PAINT DEPARTMENT Super Shelcem is a self curing cement paint manufactured by the TCL. It is an intimate mixture of Vembanad White Cement. Water proofing components, an oxide extender, non fading oxide pigments, hardening agents and fungicides. It contains more White Cement than any other Cement Paint in the country. Super shelcem, unlike other cement paint doesnt require water curing after first and second coat. Only initial wetting of the surface is necessary. This makes Super Shelcem ideal for exteriors of multi storied buildings and sky scrapers. For interiors too, super shelcem is ideal since tedious curing after removing furniture can be avoided which means saving of labour as well. Super shelcem carries ISI marks. It is available in a wide range of colours. There are a total of 40 different shades / colour available in the market that is produced by TCL. Once a wall is painted with Super Shelcem, it looks and stays good for years unaffected by weather and fungal atta

3.6.11 TIME OFFICE

Time Office comes under the personnel department. The main function of the office is to maintain attendance register and calculate the monthly working hours of each employee. The company follows punch card system for measuring attendance.

CHAPTER IV FUTURE STUDIES

4.1. FUTURE EXPANSION The company plans some diversification schemes which will be implemented in the near future, which includes the proposal to assist setting up of Enamel paint unit and textured coating under co-operative societies. There are proposals to start a packing unit, the venturing of a project for the manufacture of calcium nitrate and Dicalcium phosphate, shifting of the present technology to dry process technology, reinitialize the production of grey cement. Other proposals include export of white Portland cement to Srilanka, Gulf countries, South Africa and Mauritius. The company has a bright future

4.2. PRODUCTION PATTERN

The company plans to make some changes in the existing production system because of the un availability of shells. Still now the company is producing the product through dredging the shell from the near by Lakes and River.But now the the shell is un available in there.So they are planning to make the product from limestone it will purchase from out side.

STRENGTHS As TCL is a government owned firm, it enjoys privileges granted by the government. Standard quality products are produced here.TCL is the only white cement manufacturer in the world to manufacture cement from natural lime shell, and it uses wet process technology for cement production. Therefore the product maintains high quality. Only company which uses the natural lime shell for manufacturing white cement Standard quality products Good training system Good organizational climate TCL is a government owned firm, it enjoys privileges granted by the government High market share

WEAKNESS Very low budget for advertisement, influence from government and political parties, sales representatives are less, surplus labour, lack of transportation facility, scarcity of main raw material lime shell , old machines etc. can be traced as the weakness of the company. Company is running on loss Poor advertisement Sales representatives are less Lack of transport facility No credit facility Dealers dissatisfied with credit facility There is no proper mechanism to handle customer grievances Influence from government and political parties

OPPORTUNITIES

The company should opt for psycho graphic segmentation of the market, where more stress should be given to the quality and fitness of the product. It should expand the distribution network to those markets where the competitors are more powerful. It can compete in the national market supported by good advertisement. Compete in the national market if there is good advertisement Liberalisation demand for cement paint Company introduces promotional programmes

THREATS High competition Liberal policy of other brands Promotional programmes of other brands Complicated national market Good replacement of other brands

FINDINGS AND SUGESSTIONS

FINDINGS

Most employees of the organization are favoring to rescue the company; from shutting down in near future.

Since the cost of Lime shell is very high for the company: should look for other material like limestone. The company should plan more regional meeting. Still the rural areas of kerala are not covered under the market network of TCL. Sales and trade promotion activities should be carried out as a support and supplement to advertising effort. Replacement of existing outdated machinery with latest sophisticated and technology based ones. The company spends more money for advertisement and sales promotion. It will help to increase brand awareness and image. The company concentrates on market in and out of kerala, where it is competitors are more powerful.

5.2 SUGGESTIONS The company should spend more money for advertisement and sales promotion. It will increase the brand awareness and image. The company should concentrate on market where its competitors are more powerful. The company should adopt the new technologies. Providing better labour management relationship. Find new sources for raw materials (limeshell).

CONCLUSION TCL Kottayam is one of the pioneers in the white cement industry. TCL is an ISO 9002 certified company, which was certified by Bureau of Indian Standards (BIS). This shows companys consciousness towards high quality production. But the company is making a recovery from this by the utilization of better opportunities and making further diversifications. Now the company is going through

loss. Because of less availability of raw materials like lime shell and the cost of the furnace oil, which is used for the WET technology, is decreased.

The study provided useful insights into the company and its functioning. It is worth that the company has done a great task in the provision of cement products to cater the needs of construction in a big way. TCL happens to be the only manufacturer of white cement with lime shell as its main raw material. With the implementation of a new technology, improving the marketing strategies, and solving the existing problems, the company is ensured of bright prospects.