1

CHAPTER-I
ORGANIZATION STUDY
1.1 INTRODUCTION
An organization is a social unit of people that is structured and managed to meet a need
or to pursue collective goals. All organizations have a management structure that determines
relationships between the different activities and the members, and subdivides and assigns
roles, responsibilities, and authority to carry out different tasks. Organizations play a major
role in the development of the country. Different organizations meet the demands of the
people by providing them with product and service.
Kerala is a known as Gods Own Country which is blessed with a moderate climate and
geographical structure. The land in Kerala is enriched with heavy mineral deposits, the
western touch of Kerala has been in the healing touch of Arabian sea and the southern part of
seashore has rare and rich deposits of minerals, stretch along with seacoast beaten tidal
channels that are between kayamkulam and Neendakara, at tract generally known as chavara
coast is situated. The main content of these sands in these areas are Ilmenite, Rutile,
Leucoxene, Silimanite, Zircon and Monazite. Out of these first three are Titanium bearing
minerals. Kerala minerals and metals extract titanium dioxide from the above raw materials.
KMML is an enterprise which earns profit under the government of Kerala, which is a
world first fully integrated TiO2 pigment plant. Eco-friendly and socially committed, KMML,
is the only Titanium Dioxide plant which has the integrated facility for mining, minerals
separation, synthetic Rutile and pigment-production plants. It is Indias only producer of
Rutile grade Titanium Dioxide pigments, the factory is located at sankaramangalam, and have
access to one of the worlds richest mineral deposited beach. They mine out minerals from the
beach and transform it into white magic (TiO2 pigment) which add gloss to paper, paint,
printing ink, textiles, ceramic, paper industry, and pharmaceutical etc. Their factories are
branched under the KEMOX. With continued growth and demand in the economy and
industry, the products o KMML are being lapped up by the eager market.
1.2 INDUSTRY PROFILE
1.2.1 Chemical Industry In India: An Overview

Industries play a significant role in almost every economy but India context it is important as
oxygen for breathing. Industrial development has been accorded great importance in Indian
planning. On account of industrial development there is increase in production, employment
and national income. India is the second largest growing economy in the world. This is equally
applicable to titanium industry.
Titanium dioxide pigment is authority white powder with high capacity, brilliant
whiteness, excellent covering power, and resistance to colour change. These opportunities
have made it authority valuable pigment for authority broad range of applications in the paint,
plastic goods, inks and paper. The pigment is manufactured by processing naturally occurring
Titanium containing Rutile or Iluminate minerals. Rutile is an impure form of Titanium
Dioxide, where as illuminate contains titanium combined with iron as authority compound
oxide. Though common throughout the world, they are most readily exploited in Australia,
USA, India and South Africa.
Titanium bearing minerals found in coastal sands of the western Kerala coast and in
the eastern region on Tamil Nadu and Orissa. The minerals sands on the 22km belt in southern
Kerala is said to be one of the deposit. India today possesses the richest technology for the
manufacture of titanium dioxide through the sulphate and chloride route. The two public
sector manufactures, TTPL (Titanium tetra chloride Ltd) and KMML have substantial capacity
additions programs. The capacity of TTPL is expected is to touch 30000TPA by 2015 and
that of KMML is expected to touch 100000 TPA by 2015, apparently, with the above
capacities, both TTPL and KMML will produce TiO2 beyond the requirement of the country
keeping this in mind, both these units have started tapping the global market.
1.2.2 World Scenario
The event that revolutionized the Titanium Dioxide industry was the development of
chloride technology by M/S.Du Pont around 1959. In the 1960s and 1970s major investment
was made in the Titanium Dioxide plants in the Europe. M/S. Huntsman of U.K, M/S. Kronos
of Germany and M/S. Thann Et Mulhouse of France have emerged as the leading European
companies in the field of Titanium Dioxide. The Japanese industry has picked up in recent
years and the Japanese production has now reached a level of about 280,000 tones. M/S.
Ishihara is the leaders of the Japanese Titanium Dioxide industry.

A global increase in mining capacity is currently the reason for the

upcoming numerous new projects around the world. These will be replacing in part, dwindling
reserves from existing producers. Current demand is increasing but may not be sufficient to
support the projected production from all the new projects. The major mineral sand deposits of
the world are spread throughout different continents across the globe. The exploration for
mineral sand deposits has intensified since the mid of 1980s due to increasing use and
demand for heavy minerals. The major countries where these deposits found are Australia,
Canada, Kenya, Madagascar, Moamdique, South Africa etc.
Top industries of TiO2 in the world

DuPond Co Wellington, USA

Ishihara LTD Japan

Rhone Poulene, France

Boyer Lever Kuser, West Germany

Kermira Helsinks, Finland

Hoitex, USA

Millennium, Germany

Henduk Seoul, Korea

Fletcha Titanium products, New Zealand

Totins, Netherlands

Keer Mc Gee, USA

1.2.3 Titanium Dioxide Industry In India

The history of Indian industry bearing mineral dates back to 1909 when the German
Geologist Mr. Schomberg discovered the presence of monazite in the black beach sands
attached to the traditional export item coir.
The Indian reserves of Ilmenite and Rutile is expected to the around 60 million tonnes.
The most important sources of Ilmenite in India are beach sands of south. Maharashtra, Orissa,
Tamilnadu and in Kerala is around 45 million tonnes. There are about 20 million tonnes
reserves in Orissa.
This information threw light in to the possibilities of new manufactures and

competitions in Titanium Dioxide pigment Industry in the Indian Market with the increasing
demand for the paints, rubber, plastic and printing inks etc. The arrival of new manufactures
will be more in the near future. This will ultimately results in tight competition.
1.2.4 Competition in the Industry
KMML enjoys the monopolist position in the Titanium Dioxide pigment manufacturer
in India. The Titanium Dioxide Rutile grade is produced only by KMML in India. KMML has
to face competition from world TiO2 producers due to liberalization and globalization. It faces
stiff competition with forgein companies like: DUPOND (USA), MLILLENNIUM(Germany),
ISHIARA(Japan ), TIOFIN(Netherland), KEMEGA(Finland), MONITOX(USA),
KERSEMEGREE(USA), TRAVANCORE TITANIUM PRODUCTS LTD(Kerala),
CRYSTAL, KRONES, TRONICS etc.

1.3 COMPANY PROFILE

Kerala Minerals And Metals Limited is a fully owned Kerala Government enterprise.
Kerala is blessed with rich and extensive mineral deposits. This deposits stretch along the sea
cost between Neendakara and Kayamkulam, a track generally known as Chavara coast. This
deposits stretch up to a distance of 18 Km along the coastal strip and having a depth of 8m.
The dark sands of Travancore coast are rich in mineral deposits as Monazite, I1lmenite,
Rutile, Zircon etc.
The company is located at Sankaramangalam near Chavara, Kollam a coastal town 85
km north of Thiruvananthapuram. KMML is situated on the side of NH-47 to about 285 acres
in area. KMML has a worldwide reputation, a socially responsible company with an eco-

friendly image. The company derived strength from its dedicated manpower and customer
organization. KMML is fully owned Kerala Government Enterprise. There are about 2000
employees in the company at present that helps KMML to grow.
1.3.1 History of KMML

In the earliest periods of 19th century, precisely in 1909 a German scientist named Mr.
Schaumberg happened to discover traces of I1lmanite and monazite in the black beach sands
of Chavara coast in the Kerala state of India. Schaumberg who was then working for an
English firm got the sand exported to England. At that time there was great demand for
monazite because of its wide application in the mantle making of gas lights. Continued efforts
of German led to the discovery of other minerals such as Rutile, Zircon, Silmanite etc in large
volume in the sand of Chavara coast between Neendakara and Kayamkulam.. The discovery
of monazite was quite accidental. Even though the German laid foundation for a mineral
separation plant at Chavara its activities were curtained by World War 2.
The first full-fledged mineral separation plant in Chavara was established by a private
entrepreneur in 1932 as F. X. Pereira and Sons (Travancore) Pvt. Ltd. They were involved in
mining and separating mineral sands into various constituents like Illmenite, Monazite,
Rutile, Zircon, Leucoxene etc. During 1956 this concern was taken over by the state
government and was placed under the control of its industries department. The unit was
converted as a limited company with effect from 1.4.1972 in the name of "The Kerala
Minerals and Metals Ltd".

Initially the company had only one unit known as 'Mineral Separation Plant'. In 1974
the company received intent for the production of Titanium dioxide (Ti02) pigment using
Chloride process. In 1976 KMML registered its 2nd unit known as Titanium dioxide Pigment
Plant. Its construction started only in 1979 and total capital cost was Rs.144 Crores. The plant
was commissioned in December 1984. KMML became the first and only Integrated Titanium
dioxide plant in the world.
Even though KMML was commissioned in 1984 it was not able to operate efficiently
due to technical problems. Due to these problems the company has to suffer an accumulated
loss of more than the capital investment over a period of 8 years.
In the above circumstances it was in 1991 that the entire personnel of KMML from top
management to down to the lowest workers started to think individually and collectively about
the requirement of a 'Turn Around'. A strategy was planed and implemented with the
wholehearted support of the workforce during the period 1991-1993.1t started to yield results
and the Company attained the breakeven level by 1993.From 1993-1994 onwards, the
company started to make profits and wiped out the entire accumulated loss within a few years
and repaid the long term loans. Thereafter, it is the story of success and growth.

1.3.2 Incorporation of Kerala Minerals and Metals Limited

Kerala is a land enriched with heavy mineral deposit. This richness evolved the
formation of the company Kerala Minerals and Metals Limited (KMML).
It

was

all

way

back

in

1909,

when

German

Chemist

namely

Dr. Schaumberg noticed some brown sand particles sticking with coir exported from India. He
realized that the particles present were Monazite leading to the discovery of vast deposits of
Monazite in the black beach sands of Manavalakurichi in the east Travancore state. Late the
Geological Survey of India established the occurrence of Monazite and other earth minerals
like limonite, Rutile, Leucoxene, Silimanite and Zircon.
Miss. F X Pereira & Sons (Travancore) Private Limited were the pioneers who
established the first fully fledged Mineral Separation industry in Chavara area way back in
1932 using the dry separation process. Gradually the company found itself in financial crisis

and in January 1956, the Kerala State Government took over the company and continued
under name F .X.P Minerals in 1972 the Government renamed the name of the company as
The Kerala Minerals and Metals Limited (KMML). At present KMML consists of two units,
the Mineral Separation Plant and the Titanium Dioxide Pigment Plant.
1.3.3 Technical Collaboration
The KMML entered in to technical collaboration with three multinational
corporations M/s. Keer MC Gee Chemical Corporation of USA. M/s. Benedict Corporation of
America. M/s. Woodall Dukham of UK respectively for. The Metallurgical of Engineering
Consultants India Limited (MECON) a Government of India Undertaking did the detailed
engineering.
1.3.4 CERTIFICATIONS OF KMML
1) ISO 9001:2000
Certificate from Bureau Veritas Quality International (BVQI)
and holes certification of United Kingdom Accreditations Service (UKAS). The United
Kingdom Accreditation Service is the sole national accreditation body recognized by
government to assess, against internationally agreed standards of an organizations that provide
certification for testing, inspection and calibration services.
and accredits certification from ANSI-ASQ National Accreditation Board (ANAB) is the
U.S. accreditation body for management systems, ANAB is a member of the International
Accreditation Forum and a signatory of the IAF Multilateral Cooperative Arrangements
(MCA) , ANAB ensuring accredited certificates which are recognized nationally and
internationally for good quality management system.
2) ISO 14001:2004
Certificate from Bureau Veritas Quality International (BVQI)
and accredits certification of National Accreditation Board for Certification Bodies
(NABCB). NABCB is a member of International Accreditation Forum (IAF) having
Multilateral Recognition Arrangement (MLA) to certify ISO 14001
- Environmental
Management System.

and holes certification of United Kingdom Accreditations Service (UKAS). The United
Kingdom Accreditation Service is the sole national accreditation body recognized by
government to assess, against internationally agreed standards of an organizations that provide
certification for testing, inspection and calibration services.
3) OHSAS 18001:1999
Certificate from Bureau Veritas Quality International (BVQI)
The Occupational Health and Safety Assessment Series (OHSAS) specification gives
requirements for an occupational health and safety (OH&S) management system, to enable an
organization to control its OH&S risks and improve its performance.
1.3.5 National and International awards conferred on KMML
National award for R & D efforts industry for the best research and development
efforts by department of Science and Technology(1992)
FACT MKK NAIR Memorial

productivity Award 1993-94,94-95 for the best

productivity performance by Kerala State Productivity Council

Energy Conservation Award 1999in appreciation for outstanding achievements
towards energy conservation and management in the category of large scale industries
FACT MKK NAIR Memorial productivity Award 2001-02 for second in productivity
performance by Kerala State Productivity Council 2001
FACT MKK NAIR memorial productivity Award 1999-2000,2000-01 for first in
productivity performance(Large Organization) by Kerala State Productivity Council
Energy Conservation Award 2001 for conservation and management in the category of
large scale industries by Energy management centre Kerala 2001
Award for Revenue performance 2003 for the best performance by central excise,
customs Kollam Division 2003
Marketing campaign Award 2003 for best marketing campaign by Asia pacific
coating 2003

International gold medal for the Quality of the product and efficiency of the company
by Forum Kerala Lumpur Global Rating UK 2003
Special Export Award for export performance by chemicals

and Allied Export

Promotion Council (CAPEXIL) sponsored by ministry of Commerce

Government of

India 2002-03
1.3.6 Employee Strength
There are about 210 officers and 1122 workmen in KMML. The total strength is 1332.
1.3.7 Future Plan
The company is studying the possibility of the productivity of more economic titanium
metal sheets. Recently, researchers established that the Aeronautic Industry could use
Titanium metal instead of Aluminium alloy or Duraluminium coverings. The company is in
the process of expansion and the target expected is approximately as shown be1ow:
1.

A new Mineral Separation Plant of capacity 2 lakhs tonnes per year Ilmenite

2.

A new Synthetic Rutile Plant of capacity 1.3 lakhs tonnes per year

3.

A new 100 tonnes per day Oxygen Plant

4.

Capacity enhancement of TiO2 pigment plant 1 lakh tones per year

1.3.8 Pollution Control

KMML has elaborate Pollution Control system with respect to both water and air
pollution. The wastes (acid) from Ilmenite Beneficiation Plant are sent to Effluent
Neutralization Plant (ENP). ENP consist of a Primary Neutralization Tank (PNT) and
Secondary Neutralization Tank (SNT) where it is treated with caustic soda solution. The
totally neutralized slurry from the SNT is pumped to 50000m3 capacity setting pond provided
with impervious clay, polythene lining at bottom side where the solids are settled. The dye
solution from setting pond of 25000m3 capacity where the balance solids are allowed to settle.
Then clean water from the polishing pond meeting all specification stipulated by Pollution

10

Control Board authorities is pumped in to the Arabian Sea.

All gases from Chlorination, Oxidation, Ilmenite Beneficiation Plant and Acid
Regeneration Plant are passed through scrubbed water or caustic solution to absorb the toxic
gases diluted with enough fresh air and only let out to the atmosphere through tall slacks.

1.3.9 KMML Plant Lay Out

NH. 47
Administrative Block
FINANCE DEPARTMENT

Plants
SUBSTATION

CANTEEN

MARKETING DEPARTMENT

OXYGEN PLANT
PERSONAL DEPARTMENT

PPP UNIT
100/200

PPP UNIT
400/500

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1.4 ORGANIZATION CHART

MANAGING
DIRECTOR

GM PRODUCTION

DGM P&A

GM MARKETING

GM FINANCE

MAINTENANCE
MANAGER

MANAGER

AGM

AGM

MANAGER
WELFARE

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CHAPTER-2
METHODOLOGY
It is an operational frame work, which helped to collect required data. For the
completion of the organization study, primary and secondary data are collected. Direct
interview is used to collect primary data from various department of the organization.
Secondary data are collected through literature review, records from various departments,
company profile, internet etc.
2.1 OBJECTIVES OF THE STUDY
The present study has been undertaken with the following specific objectives

To acquire knowledge functional as well as managerial aspects of KMML.

To understand the organizational profile, the structure of authority and levels of

management.

To compare theoretical knowledge with actual practices.

To make an analysis of the organizations performance.

To develop an understanding on the management practices followed in various areas.

To study an organization in details and to gain practical understand about its

functioning.

13

To understand quality standards maintained by the organization.

2.2 SCOPE OF THE STUDY

It is useful for academic purpose and further references.

Organization study focuses on the growth and origin of the company.

The organization study will help to get clear picture about the organization structure.

To understand production methodology.

2.3 TYPE OF STUDY

A research design is a plan or a detailed outline of how an investigation will takes

place. It provides better techniques for collection and analysis of data for the purpose.
It is the conceptual structure within the research is conducted.

The design adopted for the study is descriptive research design. Descriptive studies in
which the researcher interacted with participants, may involve surveys or interviews to
collect necessary information.

2.4 PERIOD OF STUDY

The period of study is from 31 days from 1-07-2014 to 31-07-2014. During the period I have
collected the necessary data and other relevant information needed to carry out study
successfully.
2.5 LIMITATIONS OF THE STUDY

Due to complex organizational structure it was difficult to collect information.

The limitation of time was a major concern as the personnels availability for
discussions were very limited and frequently interrupted due to official commitments
and study duration was 30days.

Accuracy of the data is another limitation as the study was also based on secondary
sources.

The hesitation on the part of the management to disclose several matters, due to its
confidentiality was another limitation.

2.6 CHAPTERIZATION

14

Chapter-1 deals with the introduction, industry profile, company profile and
organization chart.

Chapter-2 includes objectives scope of the study, research design, period of study and
limitation of the study

Chapter-3 covers departmentation and the product profile, swot analysis.

Chapter-4 brings the observation, recommendation and conclusion.

CHAPTER-3
ANALYSIS OF THE STUDY
3.1 DEPARTMENTATION
Like any other public sector undertaking KMML has separate departments and
separate executive heads for each department Departments are based on the functional basis.
Each department specializes in its own area of operation. The various departments in the
KMML are:1) Personnel & Administration
2) Marketing
3) Finance
4) Production
5) Maintenance
6) Materials
7) Data processing
8) Fire & Safety
9) Technical
10) Research and development Department
11) Project

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3.1.1 PERSONAL AND ADMINISTRATIVE DEPARTMENT

Of all the factors of productions, man is by for the most important. It is a matter of
common knowledge that every business organization depends for its effective functioning not
so much on its material or financial Resources as on its pool of able and willing Human
Resources.
M J Jueius defines personnel management as the field of management which has to
do with planning, organizing, controlling various operative activities of procuring, developing,
maintaining and utilizing a labour force in order that the objectives and interest for which the
company is established are attained as effectively and economically as possible and the
objectives and interest of all levels of personnel and community are served to the highest
degree.

Workman Classification

Permanent Employees
There are about 215 officers and 960 non technical staffs in the TiO2 pigment plant as

permanent employees.

Employees Engaged On Contract Basis

The employees worked on contract for a limited period of time on terms and conditions

fixed by the company. They are mainly engaged through employment exchange.

Temporary Or Seasonal Worker

These workers are employed when the workload is more and seasonal demand is high.

They are dispersed when the work is over.

Casual Labour

16

They are employed from people who lost their land due to acquisition by KMML.
They are engaged first as casual workers and then absorbed as permanent employees when
vacancy arises.

Apprentice
Apprentice work for a period of 1 year as a part of training program as per Apprentice

Act.
Certain Recruitment Sources

Internal Search

Advertisement

Employees Recommendations

Employment Agencies

Temporary Help Service

Schools, College and Universities

Professional Organizations

Casual or unsolicited Applicants

Other Sources
Recruitment procedure in KMML

1. The employment exchange compulsory notification of vacancies Act.1959

stipulates that every establishment in public sector shall before filling vacancy in
any employment in the establishment in public sector should notify the vacancies
to the concerned employment exchanges any failure to notify such vacancy is an
offence punishable under that Act. Therefore the chief executive of public
establishments shall notify vacancies to comply with the Act.

17

2. Recruitment to managerial and professional posts carrying a starting basic salary

excluding DA and other allowances of Rs 15000 / per month and above shall be
made by selection from the applications received through sufficient advertisement
in newspapers. The candidate sponsored by the employment exchange shall be
selected from the applications received through sufficient advertisement in
newspapers. The candidate sponsored by the employment exchange shall also be
considered for selection .If the details are furnished by the employment exchange,
call letters are issued to the short listed candidates for the interview or test.

3. Selection to all other post outside the preview of public service commission shall
be made from among the candidate sponsored by employment exchange. In this
case filling up of vacancies by generating applications through advertisements in
newspapers should be attempted only after obtaining non availability certificates
from employment exchange.

4. Recruitment to vacancies should be made by committees set up by board of

directors with not less than 3 members and atleast 1 of them being government
representative.

5. In respect of direct recruitment the principles of reservations as applicable to

government appointments should be adhered to the principles of communal
rotations and laid down in Rule 15 to 17 of the Kerala subordinate service Rules
part II shall be followed.

6. No preferences shall be given to the apprentice of the undertaking while making

recruitment against permanent vacancies.

7. The practice of hiring persons on daily wages to man posts, which can be called
through employment exchange, shall be discontinued. All existing vacancies
should be anticipated and actions should be taken to fill them. All amounts spent
on hiring daily wage employee shall be treated as irregular expenditure, which
could be recovered from the appointing authorities.

18

8. The instructions already issued by the government to these extend they are
contrary to the foregoing procedure will be cancelled from the date of issue of the
circulars.

Working Hours
The company works on shift bases. There are 3 shifts for plant and general shift for
Administration. The timing is as follows:

A shift
o 6 am to 2 pm

B shift
o 2pm to 10 pm

C shift
o 10 pm to 6 am

General
o 9 am to 5 pm

Stipulations
An employee has to report for duty at 9 am except the employee worked in shifting
times. He may enter the company after one hour and will not be allowed to enter after his
grace time. An employee entering after the grace time may losses 15 minutes salary / wage for
the first 15 minutes and between 16 to 30 minutes late he losses 30 minutes salary and
between 31 min to 60 min late he losses one hour salary or wage. This is closely watched by
the time officer.
Welfare Activities

19

The provision regarding the Factories Act 1948 require the appointment of a Fulltime
Labour Welfare officer in every concern which employs 500 or more employees. In KMML
personnel and Administration department is entrusted which covers the intellectual, physical,
more and economic betterment of workers.

Financial Benefits
1. Bonus
2. Provident Fund
3. Gratuity

4. ESI
5. Allowances

The allowances provided by me company for its employees as followers

House rent allowance (HRA)

Conveyance Allowance (CA).

Shift allowance

Washing allowance

Cash tending allowance

Milk allowance

Stitching allowance

Chlorine tanker duty allowance

Acting allowance

Education Allowances

Attendance Allowance

20

Employee PF and pension scheme

Housing loans

Vehicle loan
Non-financial incentives in KMML
Financial incentives are used to motivate employee for higher works .however
individuals have various needs, which they want to satisfy while working in the organization
.people at comparatively higher level of managerial hierarchy attach more important to
socio-psychological needs, which cannot be satisfied by money alone. The following are me
important non-financial infective in KMML
TYPE OF LEAVES
1. Annual leave
2. Sick leave
3. Casual leave
TRADE UNION
There are 4 trade union in KMML
1. Titanium complex employee unions (UTUC RSP CB)
2. Titanium complex employee congress (INTUC)
3. KMM titanium complex employee union (CITU)
4. KMM titanium complex employee union (STU (MUSLIUM LEAUGE)

21

3.1.2

MARKETING DEPARTMENT

"Marketing is a social and managerial process by which individuals and groups obtain
what they need and want through creating and exchanging products
and value with others" ------------Philip Kotler.
About Kmml Marketing
KMML have monopolistic in Titanium Dioxide (TiO2) pigment industry. KMML is a
public limited company that stands as a leader in production of TiO2. The company has a
large number of customers from all over the world and out side.
The marketing department is engaged in selling of the company's product. There is no
separate department for sales and marketing management also perform these functions. The
marketing section keeps detailed report about customers' product, product group control,
dispatch and payment.
Products of KMML always maintain very high standard perfection, achieving technical
excellence in every phase of production to offer a wide range of products for quality conscious
customers.
At KMML, one factor comes before everything else is customers and KMML go out of
their way to ensure customers satisfaction. A team of motivated marketing experts, who make
it their business to find out the firm's views, highlights customer's consciousness. Maintaining
close contacts, they are perfectly aware of customer's needs and are instrumental in
development of new products at price and offering.

22

MARKETING MIX
Product
The major products of KMML is Titanium Dioxide Ti02 (Rutile) pigment, which is
extensively, used as the main raw material by several industries such as paint, plastic, rubber,
printing, inks etc.

paint systems powder coating, water borne coating and printing inks. It can also be
used for letterpress gravure, polyamides and other inks where low abrasive pigments
are required.
Price
Based on the variation in the market, the price of Ti02 is fixed by KMML. The price is
fixed by Chairman and Finance Secretary of the Government of Kerala. The price is
periodically revised due to market fluctuation.
Selling price of all grades ofTiO2 (Rutile Grade Pigment)
= Rs. 194000 + 16% Excise duty + 4 % CST
Promotion
KMML is a sole manufacture of rutile grade titanium in India. Hence there is no much
competition in the world market. Advertisement promotes the company product.
Advertisement
Advertisement are given in trade journals, industrial news, magazine used by paying
manufactures association, ink producer association etc. Advertisements are also given in
newspapers while appointing stockiest.
KMML subscribes "Paint India" the leading publication of the paint industry and also
"Mineral Market Reporter" which provides valuable information about Ti02 at national and
international level. The company also provides discount scheme for its customers.
Place Of Distribution
Marketing channel decisions are among the most important decision that management

23

faces. A company's channel decision directly effects every other marketing decision. The
firm's sales force and advertising decision depends on how much persuasion, training and
motivation the dealer need.
Distribution System
In KMML distribution is divided into two major categories:
I) Direct Supply:- Direct Supply to the actual customers who require seven metric tons
or more at a time. By this policy KMML, have estimated the middlemen and it is easily
adapted to any circumstances.
2) Supply through Stockiest:- Supplies to small sectors are done through stockiest
appointed by the company in all major cities. Company fixes prices for its products and the
stockiest are responsible to see the pelts at fixed once. All the grades of Ti02 pigment
produced in KMML come under the category of industrial goods; Ti02 is mainly used in paint
industry, textile industry, printing ink industry etc. The total customers can be divided in to
three types:

Major Customers

Stockiest

Other Customers

Customers
Paint industry contribute large customers of Ti02-, other largest customers include
such industrial as paper, plastic, polyester. The bulk of the products in KMML are consumed
by industrial namely:

Asian Paints

Hindustan Latex and Revin

Shalimar Paint

Corlass Nerolac

Jenson and Nicholson

Sanderson Chemicals

Mega Meditex

24

Camlin

Plastic Chemix Industries

Berger Paints

Rajdoot Paints

Sales Procedure
The sales section obtains the order from the customer; receives the pigment in the form
of cheque or DD, dispatches the quantity and send invoice to Financial Department.

Major Competitors
The company has a monopolistic nature in TiO2 pigment industry in India. The
company has some competitors in the world market.
The main competitors in the world market are:

Dupont (USA)

Ishihara (Japan)

Hoitex (USA)

Millennium (Germany)

Henduk (Seoul, Korea)

Flectha Titanium Products (New Zealand)

Tofins (Netherlands)

Export Market In Kmml

Even through KMML faces stiff competitors from multinational giants, KMML
receives a number of export orders through e-mail, fax and through correspondence from
customers abroad. KMML enjoys good reputation for quality pigment in the international
market. The company is exporting its products in Korea, South Africa, Sri Lanka, Turkey,
Dubai, China, Mauritius, UK and Philippine. The company is now exporting 30% of their
production. It has plans to
raise this to 50% by 2013.

25

Marketing Information System

KMML is a member of chemical and allied products export council. Bulletins of
chemical are regularly received by KMML and used to obtain the latest trend of Titanium
Dioxide demand for various customers both indigenous foreign.
KMML subscribes "Paint India" the leading publication of paint industry and also
"Mineral Marketing Reporter" which provides valuable information about Ti02 at national and
international level.
KMML uses the services rendered by "India Marketing Bureau" which is a marketing
research as advised by KMML. For this KMML has to pay fees annually for their research
studies.
Handling Customer Complaints
The complaints received from the customers are registered by KMML, and
acknowledgment sent to customers. The details of the complaints are entered in the customer
complaints register. The particular about the progress of investigation and nature of
disposition are updated in the customer care register.
Marketing Functions Of Kmml
Functions Of Exchange
I) Buying And Assembling:- The extraction of raw materials of producing finished titanium
dioxide is done at Chavara where the factory is situated. Only certain quantities of chemical
and other raw materials is purchased from other units for the production of titanium dioxide.
Assembling of titanium dioxide is done at the factory godown.
2) Packing:- Titanium dioxide is packed in 25Kg net weight in laminated multi wall paper
bags. After the chemical process is over, the materials is micronized, the pigment is collected
in bagging. The material is taken to a conveyor, here two peoples are engaged in bagging and
four are in stocking. It is then taken and stored in pigment godown. 50 bags are packed in one
pallet weighting 1.25mt.

26

3) Selling:- KMML sells titanium dioxide directly to its consumers and its stockiest in bulk.
The stockiest are appointed by fulfilling certain rules and regulation of the company.
Functions of physical supply
Despatching: - After the order from stockiest and consumers, have been received, the
marketing department arranges the execution of orders by way of dispatch. The mode
of payment must be in the form of Demand Draft payable at any scheduled bank at
Kollam.
Documents And Registers To Be Prepared For Despatching Goods
a) Order Register:- Particulars of order received is entered in a registered called order
register. It shows the date, name of the party, grading of the products, payment of cash and
transport mode.
b) Delivery note:- This note is prepared before the goods are dispatched. It has the KGST
Rules 1963.
c) Delivery Chellan:- It is another important document which is prepared by the dispatch
section. It contains the details of goods, which are dispatched, name of carrier, L.R.No,
excise, gate pass note and date of dispatch.
d) Invoice:- Invoice is prepared at finance department and submitted to the marketing
department. It shows the name of the customer; date, grades of goods, quantity purchase,
price, destination, truck no etc.
e) Gate Pass:- It is prepared by the dispatch section. The company gate pass is submitted
before the security officer to take goods out of the factory premises.
f) Transportation and Insurance:Transportation and insurance are to be arranged by the
customer. The customer shall nominate their approved transporter.
Declaration Under Kgst Rules 1963 Form 27b
This is another document, which has to be filed up and made ready before dispatching
the goods. The form is addressed to the officer in charge of check post and it must be signed.

27

Marketing Facilitating Function

1) Financing:- For carrying out marketing functions, KMML does not require financial
assistance in form at loans. The customers will have to make payment in advance.
2) Risk Bearing:- Marketing of titanium dioxide pigment involves a number of risks.
Returning the goods by customer or damages at the time at storing in the factory go down
covers the risk factor. All the above risks are reduced to a great extend with the help of
insurance.
Main Objectives
1) To find out the general impression of KMML products in the tit dioxide marketing of
India.
2) To ascertain whether demand exists in the Indian market. If we under the proposed
expansion of 6000 million tonnes.
3) Equivalent grade needed in market.
New product development
A new hydrophobic plastic grade pigment RC804 was developed by the effort of
inhouse R and D of our company. The trial production of the same, approximately 100 times
was taken successfully. The sample has been tested at CIPET Hyderabad and found to be
comparable to competitive international grade pigment. Free samples were given to
customers for their evaluation after which bulk orders were received and the entire material
could be sold out.

28

3.1.3 FINANCE DEPARTMENT

Finance is the lifeblood of every business. This is one of the most important
departments. In KMML a well organized finance department is functioning. The finance
position of the company can be understood by Balance Sheet and Profit and Loss Account,
prepared budget report according to the company's goal is also an important function of the
finance department.
Accounting Policy of KMML
1) Convention
The final statements are prepared under the historical cost convention in accordance
with applicable accounting standard that was relevant to presentational requirement of the
Companies Act 1956.
2) Fixed Assets
Fixed assets are stated at cost of acquisition and additional if any, less accumulated
depreciation, is provided at rates and methods prescribed in the schedule XIV of the
Companies Act on straight line method in respect of plant and machinery and railway sliding
belonging to TiO2 pigment unit. And written down value method in respect of all the asset of
the company. The depreciation is calculated on the basis of Companies Act and for income tax
audit it is added to the profit and recalculated as per the audit rules.
3) Excise duty
Excise duty on manufactured is accounted for as and when goods. Are dispatched is
accordingly no provisions is made in respect of duty due on goods manufactured, but not

29

dispatched nor included in valuation of stock.

4) Gratuity
Gratuity liability and leave is accounted on the basis of actuarial valuation.
5) Inventory System
Work-in-progress is valued at the cost and stock of raw materials, chemicals, fuel and
stores are valued at weighted average cost on monthly basis.
Adjustment Per Training To Early Years
Adjustment arising out of errors or omission in the financial statement of earlier years
are prior period item, if the amount involves is Rs. 1,00,000/- or more in each case.
Functions Of Accounting Section Or Finance Department
The company maintains a clear and perfect accounting system. The main activity of the
Finance Department is Working Capital Management. Preparation of Fund statement, cash
Flow Statement, Balance Sheet. Profit and Loss Account etc are also the activities of Financial
Department. Secretarial work relating to Board comes under the review of the Finance
Department. Most of the activities carried out by the Finance Department are pertaining to
long term and ,short term requirements of the operation, closing purchase bill, maintaining the
account of contractors, subcontractors, income tax deduction, salary discrepancy, dealing with
the financial institutions with imports and exports are also the functions of the Financial
Department. The Functions are:
1) Purchase are Recorded and Analyzed
The Finance Department of the company keeps the accounts of purchase of spare parts,
chemicals etc and accounting entries are made in the books of accounts of the company on day
to day basis, on the basis of bills and supporting vouchers of each item. Each voucher is
essentially numbered to avoid discrepancy.
The company makes only miscellaneous purchase, as the main raw material is mineral
sand. The department analyses the details of purchases afterwards.
2) Salary Section and Pay Division

30

The main function of the department is preparation and disbursement of salary of

officers, members of office staff and workers. The department keeps salary register pertaining
to each of the above sections, which facilitates charges in salary due to granting of annual
increments and deduction due from the salary. The disbursing of salary is crediting the amount
to the respective bank account of the employee. The department is sending a detailed list of
salaries; they have arranged an A TM counter of ICICI Bank in the company compound.
Certain employees are paid by cheque. The department is maintaining sub ledgers for
deductions made in the salary such as PF, Insurance Premium Advance, Income Tax etc.
Another important function is computation of income Tax. Its deductions and prompt
remittance to IT Department.
3) Sales and Revenue Accounting:
The department is calculating and paying sales tax and central excise duty to the
concerned Government every year. The Government is earning a total income of Rs.44 crores
and Rs.14 crores by way of excise duty and sales tax duty from the company.
4) Cash and Bank Transactions
The department does all the matters relating to the day-to-day cash transactions. They
receive and make payment for purchase and sales. The company is allowed to collect cash up
to the limit of Rs.20000/- is carried out by cheque or DD as per direction of the Tax Authority.
5) Major Banks of the Company
ICICI, SBI, SBT, Standard Chartered Bank, Canara Bank, Central Bank of India.
6) Costing
Annual budget and cost sheet is prepared at the outset of every year and on the basis of
the department fixes the floor price of each product of the company.
7) Calculation of Depreciation
The department calculates the depreciation. Depreciation is provided on straight-line
method in the case of plant and machinery of Titanium Pigment Unit and written down value
method in case of other assets of the company.

31

AUDITING
Auditors are appointed by the Government for a period of one Year. There exist an
external audit and internal audit.
Internal Audit:- These are part of the organization. There is an internal auditing sector. They
are in the charge of periodical audit.

External Audit:
They are as follows:

Statutory Audit

Account General's Audit Inspection Audit

Sales Tax Audit Income Tax Audit

Cost Audit

Working Capital
Working capital refers to that part of the firm's capital which is required for
financing short teem or current asset such as cash, marketable securities, debtors and
inventories. It is a measure of both a company's efficiency and its short term financial health.
If the working capital is positive it means the company is able to pay off its short term
liabilities. If it is negative company is unable to meet its short term liabilities with its current
assets. If a company's current assets do not exceed its liabilities then it may run into trouble
paying back creditors in the short term. So if a company working in the most efficient manner
(slow collection) it will show up as an increase in the working capital.

Year

Current
Year

Loans and

Current

advance

liability

Provision

Workin
g
capital

2009-

29187.

10

84

23718.91

4183.87

16521.69

32201.1
9

32

2010-

127130.94

118975.96

16577.63.

111775.42

27753.85

122531.31

12004-05

129187.84

112554.58

123050.0

11
201112

3.1.4 PRODUCTION DEPARTMENT

KMML always maintain high standard of perfection by achieving technical excellence
in every phase of production. Catering to strict guideline, KMML offers a wide range of
products for quality conscious customers. Their products go in to the manufacture of variety of
products used in everyday life. Paint material, facial creams, tablets, newsprint, rubber
products, cosmetics and printing inks all contain TiO2.
This department undertakes activities and decision regarding the production work.
Deputy General Manager (production and maintenance) controls the activities of the
department. Production of TiO2 is carried out in lot wise with specific lot number. Each lot
contain 15 MT of TiO2 samples are collected from production at specific intervals and
examined thoroughly in the laboratory or the company. If any defect is identified, then the lot
is considered as inferior quality. .

33

Mineral separation plant (MS unit) and TiO2 pigment plant (TP unit) is two
independent production units in KMML. The TP unit is divided in to three plants.
Ilmenite Beneficiation Plant
Acid Regeneration Plant
Pigment
Mineral Separation Plant
The MS plant was originally established in 1932 in the private sector. Several
machineries were added in the course of time. This plant situated by the side of the open
mines, does the separation of the minerals from the beach sand. The raw sand is first
concentrated in spiral separation to enrich the heavy mineral content. The wet concentrate is
then dried in fluidized bed drier and then fed to the dry separation plant. Magnetic separation
and HT separation separate different minerals. The plant also separates Rutile and Zircon from
the sand.

Titanium Dioxide Pigment Plant

TiO2 Pigment manufacturing process of KMML based on chloride route, the
process consist of following steps.

Reduction and leaching of raw illmenite of 90-92% TiO2 (illmenite Beneficiation)

Regeneration of spent Hydrochloride acid for minimum pollution.

Conversion of beneficiated illmenite to TiO2 pigment

Illmenite Beneficiation Plant

Here the raw illmenite containing 58-60% TiO2 is beneficiated to 90% TiO2 content.
The beneficiated illmenite is the raw material for the pigment production plant. The ferric
oxide in the raw illmenite is subjected to high temperate of 8500c. The reduced illmenite then
cooked and sent to digesters where it is leached with 1820%Hydrochloric acid. The spent

34

leach liquor is sent to storage tanks. The leached illmenite after washing and filtering is
calcined to get beneficiated illmenite.
Acid Regeneration Plant
The spend leach liquor from the pre concentrator is processed in to the spray roaster in
which the liquid spray entering the furnace is heated by the burning oil. The spend liquor then
decomposes to metallic oxides and hydrochloric acid. The hydrochloric acid vapour is first
cooled in pre concentrator and then absorbed in the wash liquor generated in the IBP to get
18% HCI which is recycled back to IBP. The unobservable gases are scribbled with water
before venting to the atmosphere. The metal oxide consisting of mainly iron oxide are slurred
with water and routed to the slurry panel.
PIGMENT PRODUCTION PLANT
The pigment production plant has three units:
1. Chlorination plant
2. Oxidation plant
3. Surface Treatment and Pigment Finishing Plant
Chlorination Plant
This unit beneficiated illmenite from chlorinated as reducing atmosphere to produce
Titanium Tetra Chloride (TiCI4). Chloride reacts with Titanium Chloride and other metallic
oxides. Beneficiated in the illmenite in the pressure petroleum coke at a temperature of 800900c in fluidized bed chlorination to produce chlorides are condensed and purified to obtain
pure TiCl4liquid, which 4s stored in the storage vessel.
Oxidation Unit
In this unit raw pigment grade TiO2 is produced by reacting pure TiCl4 and oxygen
with at a temperature of about 1000c in a reactor after preheating the TiCl4 in a pure heater
having suspended in code tubes to carry the Titanium Chloride vapour. TiO2 raw pigment
obtained for this unit is scurried with water pumped storage tanks for further processing in the
pigment-finishing unit, the chlorine is liberated back to the chlorination unit.

35

Oxygen and chlorine are required for oxidation and chlorination.

Pigment Finishing Unit
The unit-dispersed slurry from oxidation unit is passed through the different
subsections of the unit via, sound milling and classification treatment filtration, drying,
micronisation, scrubbing, cooling and bagging. In the treatment section chemicals are added.
Give a coating to the pigment is reduced to two microns to be micronisation treatment. The
hot micronised pigment is cooled and pneumatically conveyed to the final storage bin, this
product is then bagged in paper bags of 25 kg each stacked on woolen pallets (40 bags/pallets)
and dispatched.
Air Seperation Plant
This unit has been designated by Mis Lair Linde, France and supplied through M/s
BHPV Ltd Visakapattanam. The Oxygen and Nitrogen are required for the process in the
Oxidation and chlorination unit. This plant has a capacity to produce the following.
1 Gaseous N2 -1500 Nm/hr (50 MTD) 99.8% purity
2 Gaseous N2 -1800 Nm/hr (50 MTD) 99.5% purity
3 Liquid O2 - 37.5Nm/hr (2.5 MTD) 99.5% purity
4 Liquid N2 - 45Nm/hr (2.5 MTD) 99.5% purity
Iron Oxide Bricks Plant
An iron oxide brick is a building material produced KMML. The materials used for
the production of iron oxide bricks are:
1. Iron oxide
2. Lime
3. Cement
4. Riversand
5. Sodium silicate
The company has been facing a problem in the waste disposal areas. This problem is

36

mainly connected with the disposal of iron oxide slurry, which has been coming outside from
acid regeneration unit as a waste. In order to dispose the iron oxide powder the company
started to produce the iron oxide bricks in the plant. At present the company is using this
product for its domestic purpose such as constructing compound wall, floor etc.

3.1.5 MAINTENANCE DEPARTMENT

The maintenance department of KMML can be grouped in to Electrical, Mechanical
and Instrumentation section. The Joint General Manager (maintenance) is the top authority.
1. Electrical section: 
This department is under the control of assistant general manager (Electrical). It is the
function of the department to ensure the flow of electricity through out the company.
2. Mechanical section: 
This department is under the control of assistant general manager (Mechanical).
Function of the department is to ensure the easy working of machines. The company is doing
periodical shutdown. to carryout necessary maintenance and servicing of the plant.
3. Instrumentation:

37

Assistant General Manager (Instrumentation) is the apex authority of this section. The
section inspects safety ness of valves, mechanics etc. and working of instruments. A statutory
body occasionally visits the company to check the safety of the plant.
4. Civil:
Manager (civil) controls the activities of this section. They undertake the functions
relating to implanting new machinery etc.

3.1.6 MATERIALS DEPARTMENT

All functions relating to purchase and storage of materials for the company is carried
out by this department. This department is headed by the Deputy General Manager (materials).
There is around 27000 items of raw materials in KMML. The functions of material department
can be grouped in to three: 

Purchase

Storage

Inventory control

Purchase Section
Purchase can be broadly classified as

Purchase made in India, i.e., indigenous purchase

38

Purchase made from foreign countries

Cash purchase i.e., up to Rs2000/-with the permission of unit head

Local purchase. i.e., up to Rs25000/-this arises in the case of emergencies and

purchase can be made from approved.

Terms Of Payment
1. Direct payment
2. Through bank
3. Advanced payment
4. Letter of credit
Purchase Functions
Purchase of materials is an important function of an industry. The procedure of
purchase is as follows: 

1. Purchase request: - The department or officer in need of material has to place his request
in a purchase requisition form. In case of raw materials, it is done by the inventory control
section. The purchase requisition is prepared in triplicate. The original copy of it is kept by
storekeeper and the other is send to the authorized executive. The purchase request must be
approved by the concerned department head.
2. Stock verification: -On received the purchase request the storekeeper checks whether the
materials required is available through the store. If the materials are out of stock, the
storekeepers inform the purchase section through and indent form.
3. Selection of suppliers: - The next function is to select the supplier to whom the order is to
be sent. The company places a public tender notice for the procurement of raw materials. On
the basis of the notice the vendor submit the tenders. Tenders have two parts: 

39

Technical bid and commercial bid: 

The tender committee opens the tender and verifies the technical bid and if they
are satisfied with the technical bid i.e., with the quality of materials, they opens the
commercial bid, the tender committee then prepares a comparative statement and accept the
lowest price quoted Quotation. Usually, a contract for one year is made for the supply of raw
materials. To avoid risk of the irregularities of the supply, the company appoints more than
one vendor. In case .of spare parts the enquiry is send to the vendor for, the vendors list of
company and the apt vendor is selected on the basis of tenders. The vendor list contains the
name .and address of vendors and with specific items.
4.Purchase order: - after deciding the supplier, the purchase officer of KMML has to place a
purchase order. The purchase order is written authorization to the supplier to supply the
particular materials. The materials are to be supplied according to the terms and conditions of
the purchase order. In KMML five copies of purchase order is prepared.

The original is send to the supplier.

Second copy is send to the material receiving section

The third copy is send to the person who has placed the purchase requisition

The fourth copy is send to the Finance department for future reference for payment.

The last copy is kept in the department itself.

5. Inspection of 200ds and quotation reception: - On receiving the materials from the
vendor, a visual inspection is conducted. If there is any discrepancy between the party advice
copy and received copy, a discrepancy is prepared and if
there is any damage, a damage report is prepared.
Items below Rs 500/- call for single quotation. Items above Rs 500/- and below Rs
50000/- are call for minimum three quotations from important manufactures, dealers and
stockiest. Items above Rs50000/- call open tenders.
Store Section
Store section deals with: 

40

Receiving the materials

Inspection of materials

Storage and presentation

Proper classification and codification of materials ~ Materials handling

Issue and dispatch

Stock records

Store accounting

Stock taking

Storage Functions
Various documents are prepared by the store section for the proper functioning of the
department. The documents maintained are as follows: 
1. Stores inwards book: - On receiving any materials to the store, it is entered in a
document called stores inward book (SIB)
2. Inspection of 2oods: - On receiving any materials and preparation of SIB inspection
request is send to the concerned technical office for technical evaluation and reports are
prepared on this basis.
3 Store received note: - After the preparation of SIB and inspection of goods or materials,
Stores Received Note (SRN) is prepared. This is the document showing that the, materials
received is accepted and payment can be made for it. The SRN is sent to the Finance department for payment. Four copies of SRN are maintained in KMML. Usually the company
gets a credit facility for 45 days.
4. Materials issue note: - Any material is issued from the store only after receiving a
material requisition or Material Issue Note (MIN). MIN contains all the details regarding the
material as well as the indenter.
5. Stock transfer note: - For transfer of materials between store or section or contractors,
for transfer of materials between store and section prepared, it contains details such as material

41

code, cost center, material description, unit and quality. It should be mentioned that from
which section and to which section is the transfer taking
place.
6. Material return note: - Sometimes materials issued from the stores may be returned.
In that case Material Return Nate (MRN) is prepared. It contains details such as the name of
department from which the material is returned, value, quality, code, unit, present balance and
reason for return.
BIN CARD
BINCARD is a document attached to bin and it contains the quantities details of the
materials received, issued and closing balance. In addition to this, it indicates information
regarding different stock levels like minimum level, maximum level, recorder level etc coded
number and name of materials.
Inventory Control Section
Proper inventory management is necessary to provide and maintain good customer
service. It enables smooth flow of goods through the production process. It is important as it
provides protection against the Uncertainties of demand and supply and also performing the
various production operations economically and independently.
Management Information System
Management Information System (MIS) is under the supervision of the data
processing department. Assistant General Manager (EDP) is the top authority of the
department. There are 70 personal computers in the company. 53 personal computers in the
company are in local area network. Company is having 10 Mega Bytes personal computers
back borne copper cabling. It has four signals: 
1. Stores
2. Plant technical service
3. Illmenite Beneficiation plant! Acid regeneration plant
4. Pigment processing unit/laboratory

42

There is a direct connection from IBM server to Purchase, Finance, Marketing and Personnel
department. The entire Information Technology activities are monitored by Electronic Data
Processing (EDP) section. KMML is using Oracle Related Database management system at
backend and Power Builder as front-end. An integrated online application module developed
in power builder is being used among finance, purchase, stores, marketing, personnel and
production departments. The database is fed to the system by each department, which is
required to generate various Management Information Systems to the management. A strict
security control is incorporated in the operations of various modules.

3.1.7 FIRE AND SAFETY DEPARTMENT

Fire and safety is a main department of KMML. It manages the process of giving
security to the employees by giving successful training and giving license to employees and
machines. The sections under fire and safety are: 
1.

Employee details managing: - In this section the details of the employees are

identified by separate employee codes. Here in employee code, employee name, designation,
date of birth, date of joining and qualifications are recorded. These section supplies the details
of employee to another section.
2.

Employee training: - All the employees are trained for the successful running up of

KMML. The details of training is recorded when they gives each training. Employee code,

43

serial number, date of training, course and remark are recorded. When an accident occurs the
details of the training given to the employee is produced.
3.

Employee accident: - This section handles the details of accident occurs to the

employee. Employee code, serial number, accident data, description of accident, the body part
which was injured, unsafe condition or unsafe act, whether lost time accident or not lost time
accident, the days lost are recorded.
4.

Expo- Petr o-License: - This section stores the details of the license provided to each

machines. A different agency provides this license. It must have to be renewed after the
validity is lost. This section stores the serial number, item name, license number, tag number,
last test, test type etc.
5.

Lifting machines and tackles: - There are different lifting machines in different

location. These machines have to be tested and if any defect it is stored. The machines are
given a hoist no., location, last test, tested by, defect, next test and remarks are stored.
6.

Pressure vessel: - This section handles different machines, which handle the substance

of high pressure such as LPG, CHLORINE etc. It is very difficult to handle these types of
machines. It needs high security and to confirm whether the equipment is running smoothly. It
contains serial no., section, pressure vessel, last test etc.
7.

Mock-drill: - It is a section contains trained person to maintain the security. If any

accident occurs, the help of this person is supplied and reduces the complexity of accident. An
accident controller is the head of this section.
3.1.8 PROJECT DEPARTMENT
Joint General Manager (Project) is the head of the wing. This wing is engaged in the
expansion program of the company. They are engaged in the building up of new products etc.
they also decide up on the future plans of the company.
Some major projects on which they are working upon include: 
1. A new MS plant of 2 lacks tones illmenite capacity per year

44

2. A new synthetic rutile plant of capacity 1.3 lacks

3. A new 100 ton per day Oxygen plant
4. Capacity enhancement of Ti02 plant in to one lacks tonnes per year.
Utilities
Assistant General Manager (utility) is the head of this department. The utilities consist
of steam, compressed air and water. Two boilers having a capacity
of 33 tonnes/hr each and one package boiler of capacity 8 tones/hr supply the steam. The
compressed air for plant and instrument used is supplied at a pressure of 8 kg/cm2. There are
four tube well pumps supplying water treatment plant.

3.1.9 TECHNICAL DEPARTMENT

Assistant General Manager (technical) is the head of this wing. This wing functions as
a third agency to the production and maintenance department. The technical wing takes charge
to research and development, Quality control, Laboratory and technical services.
3.1.7 RESEARCH AND DEVELOPMENT
KMML maintain a fully equipped research and Development facility in the area of
Pigment and paint technology with a view to establish world- class products and
competitiveness. This excellent facility undertakes research, development and product
improvement. Scientists and Engineers continuously pursue innovative technologies in the
area of TiO2 pigment, quality improvement and other allied products. The technical and sales

45

service wing extends all helps to customer in the field of applications and users.
KMML's Research and development has achieved following tasks in recent times: 
1. Developed new grade RC-802 with excellent balancing properties of glass and weather
ability.
2. Successfully developed an improved process of oxidation plant.
3. Developed know how to convert iron oxide waste to bricks used for construction.
4. Developed grade RC- 808, special grade for automotive coating.
The following works are on progress: 
1. Developing a grade suited for thin film plastic application.
2. Management of solid effluent

3.2 PRODUCT PROFILE

Titanium Tetra Chloride (synonym-Tickle) is produced as an intermediary product in
the production of rutile grade titanium dioxide pigment. Titanium Tetra Chloride is
extensively -used in the manufacture of Titanium dioxide pigment, Titanium sponge or metal.
At present KMML produce six grades of Titanium Dioxide and they are:
I) Kemox RC 800:- It is recommended for printing inks, high gloss coating, industrial
coating, low abrasivity pigment for letterpress gravure polyamides and exterior application
where maximum chalk resistance is not required.
2) Kemox RC-800 PG:- It finds application in plastic requiring a blue white high dispersion

46

Ti02. Other areas of application are powder coating, polyethylene films and vinyl sheet
goods. It is used in most other common plastic or rubber floor like applications.
3) Kemox Rc-822:- It is recommended for interior and exterior enamels and lacquers for
industrial and architectural purpose.
4) Kemox RC - 813:- It can be used in both interior and exterior low gloss and flat paints and
coating- both solvent and water based. It finds application in interior flat wall paints,
exterior low gloss or flat house paints, low gloss maintenance pints, low gloss or flat
chemical coating etc. Kemox RC-813 can be described as a universal pigment for all
coatings formulated at higher percentage pigment volume concentrations.
5) Kemox RC-802:It is recommended for both interior and exterior applications. This is also
recommended for architectural and industrial paints-both solvent and water based.
6) Kemox RC-808:It is recommended for automotive, industrial and architectural finishes. It
is also recommended for coil coating, radiation cured finishes; emulsion paint systems
powder coating, water borne coating and printing inks. It can also be used for letterpress
gravure, polyamides and other inks where low abrasive pigments are required.

3.3 SWOT ANALYSIS

S-STRENGTH
1. KMML is the only company in India producing Rutile grade Titanium Dioxide.
2. Constant up gradation of technology.
3. Raw materials are found in. nearby areas
4. Availability of cheap and best quality raw materials. i.e. Mineral sand consisting of
illmenite, Rutile, Zircon etc.
5. The only integrated plant in the world having mineral separation plant, synthetic rutile
plant, Titanium dioxide plant and all are closely located in one complex.

47

6. Profit making public sector undertaking with a total capital investment by the
government of Kerala.
7. The company has achieved a break through in the export market. During the financial
year 2011-2012 the company has earned the maximum foreign currency among the
chemical factories of public sector undertaking in the state.
8. Technology perfected by internal research and development efforts.
9. Technological collaborations with the Russian Mining Company ROSSBORN for the
production of Titanium Sponge.
10. The proximity of infrastructure facilities such as seaport, Railway station and
International Airport is one of the greatest strengths of the company

W - WEAKNESSES
1. Lack of sufficient land for expansion projects and storing or disposal of hazardous
waste.
2. Poor quality power and lack of captive power generation facility.
3. The internal control procedure relating to stores, raw materials including components,
plant and machinery, equipment and other assets and for the sale of goods are not
commensurate to the size of the company.
4. External/political/Governmental interference on company's day to day affairs
impairing corporate governance and professional management.
5. Weight variation due to atmosphere effect of the package product.
O - OPPORTUNITIES
1. More sales realization in domestic as well as foreign market.
2. Provision should be made for determination of unserviceable and damaged stores, raw
materials and productivity
3. Steady growth of user industries like paints, plastics, cosmetics and ink.

48

4. Faster growth rate of market in Asian countries where manufacturing facilities are
limited.
5. Unexplored value addition sector like Titanium metal, Zirconium compound
6. Kerala state being made better known to the outside world with the expansion of
tourism and infrastructure technical sectors.
7. Technical collaboration with ISRO in Titanium Metal production.

T - THREATS
1. Lower sales realization giants like Dupont, Kers -Mc Gee, Ishihara, and Crystal etc.
2. Duplication chances by stockiest.
3. Existing infra structure is very old and is need to be replaced.
4. Policy change of the state and central govt. regarding sand mining may affect the
production.
5. Mining policy of central and state government can allow small time entrants to the
sector.
3.4 MICHAEL PORTERS FIVE FORCE MODEL
Porter identified five factors that act together to determine the nature of competition within an
industry.These are the:

Threat of new entrants to a market

Bargaining power of suppliers

Bargaining power of customers (buyers)

Threat of substitute products

Degree of competitive rivalry

49

Threat of new entrants to a market

If a new entrant move into the titanium dioxide industry it will affect the market share
of KMML and also rivalry will get intensify.
KMML is the first and only integrated titanium dioxide plant in the world.
The barriers to start a mineral separation plant are greater so the threat of new entrants
to the market is comparatively low.
KMML is the market leader and having monopoly in the production of Rutile grade
titanium dioxide.
For example one of the important barrier is regulatory and legal restrictions.

Bargaining Power of Suppliers

While considering KMML the main raw material is black sand which they directly
mining from the sea shores near by the plant itself. So no suppliers are required for
that.
Another important raw materials are pet coke and hydrochloric acid which they are
having alternative suppliers.
Here the customer is big and important so bargaining power of the supplier is low.

Bargaining Power of Customers

The number of customers is high because titanium dioxide is used in paint industry,
paper industry and in pharmaceuticals also.
As the number of customers is high their bargaining power is low.
The buy products produced are also required by so many customers.

Threat of substitute products:

50

Instead of titanium dioxide some other chemicals can be used but the
performance is not satisfied compared to titanium dioxide. Titanium dioxide is a
pigment used to maintain or produce glow to paint and papers.

The availability of substitute products is comparatively low.

Now a days products from china are available but quality is poor compared to
KMML product.

CHAPTER-4
OBSERVATION, RECOMMENDATION & CONCLUSION

4.1 OBSERVATION OF THE STUDY

As the global price for the product to coming down gross profit are decreasing and
net profit throughout the study.

51

The long term solvency position of the company is satisfactory.

The upcoming of new mining companies of Titanium product will make stiff
competition on KMML.

The inability of the management to control effectively the resistance raised by the
local people in some radical issues.

4.2 RECOMMENDATION

The waste materials should be removed from factory and disposed in a scientific
manner.

New machinery and automation system should be adopted

Emphasize on permanent employment for reducing the employee turnover.

Implement motivational technique to improve productivity.

Try to solve the issues with the surrounding people

4.3 CONCLUSION
In the previous chapters, the business activities of KMML studies comprehensively.
The origin of the company and its undertakings is found out. It has been found out that the
Government is playing major role for prospering the company. Manpower activities, welfare
schemes provided to its employees and its great play in giving various training programmes
have been positively revealed. The company is aiming at providing quality grades of TiO2 to
its various customers according to their wants.
The company is successful in increasing its production capacity from 22000 tones to
50000 tones and it is planning for its future. Dupont, USA is the company's stiff competitor
and company's marketing section keep tracks of its products and demand and supply. The

52

company has a good liquidity position. The company is performing better in the recent years.
The cordial and cooperate relationship between the management and the employees is the
secret behind the success of this public sector company. All the departments in this
organization are working hand to hand thus bringing out the best results.
It may be included that the study has been done successfully keeping the objective
in mind. I was very much benefited by this training at KMML It may be included that the
study has been done successfully keeping the objective in mind.

BIBILIOGRAPHY

Davis Keith, "Human Behaviors at Work", Tata McGraw Hill

P.Varma, "Human Resource Management", S.K. Kataria & sons, New Delhi

Stanton William. "Fundamentals of Marketing", Mc Graw Hill

C.R.Kothari, "Research Methodology methods and Techniques", Wishwa Prakashan,

New Delhi

Philip Kotler and Kevin Keller "Marketing Management

Department Manuals

Spreading Splendour (Monthly Newsletter from KMML)

53

Company Brochures

The KMML Standing Orders

Annual Report 2009-2010

Annual Report 2010-2011

Annual Report 2011-2012

Websites:

www.kmml.com

www.export-japan.com.inc

Wikipedia

APPENDIX
Abbreviations
KMML

Kerala Minerals and metals Ltd

Ti02

Titanium Dioxide

ICICI

Industrial Credit and Investment Corporation of India

SBI

State Bank of India

SBT

State bank of Travancore

PF

Provident Fund

DGM

Deputy General Manager

CITU

Centre of Indian Trade union

54

INTUC

Indian National Trade Union Congress

RSP

Revolutionary Socialist Party

AGM

Assistant General Manager

AAO

Assistant Administrative Officer

APO

Assistant Plant Officer

AO

Administrative Officer

HRD

Human Resource Development

JGM

Joint General Manager

COMPANY HIGHLIGHTS
1) Equity Ownership status of the company: Public
2) Operational status: Manufacturing and marketing
3) Marketing status: International
4) Year of starting: 1932
5) No: of sales divisions: All over the world
6) The recruitment policy of the company: Through KPSC and employment exchange.
7) Wage payment: Monthly
8) Company activity: Manufacturing and sales
9) Delegation of authority: Government of Kerala
COMPANY IMAGE

55

COMPANY EMBLEM

BALANCE SHEET AS AT 31ST MARCH 2012

Particulars

As per
Schedule

2006-2007 (Rs. In lakhs)

2005-2006 (Rs. In
lakhs)

SOURCES OF FUNDS
Share holders funds

3093.27

Share Capital

40575.71

Reserves & Surplus

182.75

3093.27

56

Deferred Tax Liability

39700.46
298.83

Total

43851.73

43092.56
10157.90

Application of Funds
Fixed assets

11746.84

Capital work in progress

9037.29

Investments

17.60

Current assets
Loans and Advances

H
I

22531.31
18968.74

27130.94
18975.96

41500.05

46106.90

Less: Current Liabilities

5895.47

6577 .63

Less: Provisions

12554.58

11775.42

18450.05

18353.05

Net Current Assets

23050

Miscellaneous expenditure
(To the extent not written off
or adjusted)

Significant Accounting Policy

Notes forming Part of

0.10

27753.85

0.00

Accounts
TOTAL

5163.18

17.53
43851.73

43092.56