1

CHAPTER 1
INTRODUCTION









2

Organizational studies examine how individuals construct organizational
structures, processes, and practices and how these, in turn, shape social relations
and create institutions that ultimately influence people. Organizational studies
comprise different areas that deal with the different aspects of the organizations,
many of the approaches are functionalist but critical research also provide
alternative frame for understanding in the field.
This organizational study was done in partial fulfillment of the requirement for
the award of the Master of Business Administration at TRAVANORE COCHIN
CHEMICALS Ltd. The main objective of the study is to understand the concept
of organization and the working of the various departments during the particular
period.
1.1 OBJECTIVES OF THE STUDY
The objectives of the study are:
To understand the key business processes which are carried out in the
organization.
To understand the organizational structure and the working of the various
functional departments.
To have an exposure to the real life working environment of the
company.
To understand the overall performance of the company.
To understand the total hierarchy of the company.
To study the relevance of Travancore Cochin Chemicals Ltd. On
chemical industry field in Kerala.
To have a SWOT analysis on the company.


3

1.2 SCOPE OF THE STUDY
The study addresses the functioning of various activities carried out by TCC.
Our study was for 1 month and the study can be used for future reference and
also used for the better improvement of the organizations performance.
The organizational study on TCC enables us to find out the correlation between
the management theory and the real life working situations. This study has gone
into the different aspects like its financial management, production
management, marketing management, etc.
The study also helped us to formulate a SWOT analysis on the company.
1.3 METHODOLOGY
The methodology used in this study include
PRIMARY DATA
SECONDARY DATA
PRIMARY DATA has been collected with the help of direct interviews with
the departmental managers, the workers associated with various works and
other employees in the organization. Also the data was collected by
observation method also.
SECONDARY DATA are those data which are collected with the help of
those data which are already prepared by others. This data has been collected
with the help of the company records, annual reports, journals, the official
website of the company and other internet sites.




4

1.4 LIMITATIONS OF THE STUDY
This is only a brief study about the organization, there were the following
limitations for the detailed study
There was a shortage of time for the full detailed study in the
organization.
Some of the main details which include the key areas of the business was
not revealed
Some of the sites of work were restricted to access, so we could not have
a study on these areas.
The information provided by the responders could not be checked
whether true or false
It was very difficult to meet the top level officials of the company.















5











Chapter 2
INDUSTRY PROFILE









6

The world economy is developing. This development is accompanied by
the development of various industries as well. A wide variety of products are
coming into the market. These products require many chemicals in the course of
its production. Apart from the production process, chemicals also form a major
constituent of the product. Hence many chemical industries producing a wide
range of chemicals have come up. A chemical industry can be defined as a
company that produces industrial chemicals. This industry utilizes chemical
processes such as chemical reactions and refining methods to convert raw
materialssuch as oil, natural gas, air, water, metals, and mineralsinto more
than 70,000 different products.
Salt is one of the oldest and most popular condiments. What is relatively
unknown, is that salt is also the raw material for one of the most potentially
profitable chemical industries in the country-Chlor alkali. The Chlor alkali
industry in India is around 60 years old. It began with a modest capacity of a
few thousand tons per annum.
The Chlor alkali process is an industrial process for the electrolysis of sodium
chloride solution (brine). Depending on the method, several products besides
hydrogen can be produced. If the products are separated, chlorine and sodium
hydroxide (caustic soda) are the products obtained. For each tons of caustic
soda, 860 kg of chlorine and 25 kg of hydrogen will be produced. Some amount
of Chlor produced is combined with hydrogen to make hydrochloric acid.
Caustic soda, hydrochloric acid and chlorine are the basic chemicals and are
used by almost all industries. Chemical Industry is highly heterogeneous with
following sectors like petrochemicals, inorganic chemicals, organic chemicals,
bulk drugs, agrochemicals, paints and dyes and foreign trade.
The production has become increasingly concentrated in multinational
corporations which have plants and offices in a number of countries. Many
basic chemicals are produces in developing countries by factories of
7

multinational firm. But chemicals requiring advanced production methods are
made in industrialized countries.

2.1 INTERNATIONAL SCENARIO

The world Chlor-alkali industry is growing. Most major chemicals used are the
basic chemicals, which is used in the production of fertilizers and other
chemical compounds.
The production has been concentrated in many plants and offices in a number of
countries. To achieve low cost of production, the companies locate their
factories in the developing countries where raw materials are readily available.
But chemicals which require advanced production methods and technologies are
located in industrialized countries.
During the 1970s Caustic Soda was manufactured by utilizing the mercury cell
technology. It was manufactured by utilizing the mercury cell technology. It
was produced by amalgam process. But this technology consumes a lot of
energy and power. There was a problem of mercury pollution also. It was
during the same period due to the mina Mata disease resulting from the Mercury
pollution, the Japan Government issued a direction to all caustic soda plants to
change over to other process under a time bound program. This paved the way
for the development of Ion Exchange Membrane Cell (IEMC). This process
apart from totally avoiding Mercury, consumes 30% less power compared to the
conventional process of mercury cell technology.
In the international scenario, the increase in population has lead to increase in
consumption and hence, increase in production. There has been increase in the
production of paper, aluminum, soaps and detergents. All this has caused a rise
in demand for caustic soda. Global warming is on its rise over the past couple of
decades. The Green Peace Movement was seeking the phase out of chlorine
usage, especially the CFC (chlorofluorocarbon) compounds. This has resulted in
the closing down of many chlorine producing plans in Europe and restricted the
8

production in North American plants, with a drop in its production. But the
price of caustic soda has been rising in the world market. The caustic soda was
being sold at $50 per tones. But now it has gone up to $300 per ton.
The international market has been operating in the context of demand and
supply. Situations of shortage and surplus are cyclic as a result of which
international price is common. The worldwide caustic soda consumption is
estimated at about 65 million tons per year. The further rise in demand for
caustic soda is awaited particularly in Northeast Asia as well as India, owing to
increased consumption from key application areas such as alumina and pulp &
paper industries. China is the worlds largest caustic soda producer, with a
capacity that reached 32 million metric tons last year.
Large volumes of caustic soda are used in the manufacture of alumina as well as
pulp & paper, altogether accounting for almost 30% of global demand. Other
uses include soap and detergents, petroleum products, as well as organic and
inorganic chemical production. Northeast Asia has become the major exporting
region of caustic soda in the world, with Australia and Latin America the major
importing destinations.
Chlorine production is one of the largest sectors within the global chemical
industry. According to the American Chemistry Council, 50 million tones are
produced worldwide on an annual basis (mostly through the electrolysis of
sodium chloride brine solutions to form chlorine gas).Major manufacturers
include Dow Chemical, Olin Corporation, Occidental Chemical and PPG
Industries. The vast majority is used to make plastics and chemicals for the
agricultural and manufacturing sectors, but about 5%, or 2.5 million tons a year,
is used for water treatment. At an average price of $550/ton, that amounts to
almost $1.4 billion in yearly spend.





9

2.1.1 MAJOR COUNTRIES PRODUCING CAUSTIC SODA

USA France

Russia China

India Japan

Germany Canada

2.1.2 MAJOR COUNTRIES PRODUCING CHLORINE

United States Canada

Brazil Japan

China India

Spain UK

2.2 INDIAN SCENARIO
In India caustic soda is produced by electrolytic process. The manufacture of
caustic soda started during 1940s. The growth was rather slow during 1960s
but after that the growth picked up substantially. Today there are 38 industries
manufacturing caustic soda. Of which 40 are organized sector and the rest
belong to the unorganized sector. The total installed capacity of all these units
put together comes to about 17, 50,000 tones/annum. Indian Chlor-alkali
industries follow membrane cell technology mostly. This is highly beneficial
because cell membrane technology is more efficient when compared to
mercury cell technology.
India was a net importer of chemicals in early 1990s, but has now become a
net exporter due to implementation of many large scale petrochemical plants
like Reliance, ONGC etc. and also because of tremendous growth of exports in
sectors like bulk drugs and pharmacy, pesticides, dyes and intermediates.


10

2.2.1 Major South Indian Chlor-Alkali Units

Chemplast, Tamil Nadu
DCW, Tamil Nadu
BILT, Karnataka
Chemfab Alkalies Ltd., Pondicherry
Southern Petro Chemical Industries Corp. Ltd, Chennai
Kothari Petro Chemicals Ltd, Chennai
TCC Ltd., Kochi

2.3 STATE SCENARIO
Caustic Soda is one of the basic inorganic chemicals manufactured from
common salt. The Travancore Cochin Chemicals Limited, Udyogamandal is a
State Public Sector Undertaking owned by Government of Kerala. In Kerala
TCC Ltd. is the only Chlor Alkali industrial unit. Reflecting the quality policy
of commitment and excellence TCC has a good track record of profitable
operation and healthy industrial relations. A heavy chemical industry engaged
in the manufacture and marketing of Caustic Soda, Chlorine and allied
chemicals. The installed capacity of TCC is 175 tons per day caustic soda and
the products are used in manufacturing of soaps, textiles, plastics etc. There are
many small-scale industries in the state, which consumes caustic soda for the
production of soaps, plastics and textiles.

In view of the high transportation cost and hazardous nature of chemicals
transported, the caustic soda industry in the state is more localized and the
consuming units have come nearer to the manufacturing unit. Also because of
the high transportation cost, it is not possible to export caustic soda in large
volume from the state.

11

2.4 TCC SERVING THE NATION

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



















12












Chapter 3

COMPANY PROFILE







13


3.1 ABOUT THE ORGANISATION

The Travancore Cochin Chemicals Ltd, popularly known as TCC Ltd, is a state
owned public sector undertaking by the Government of Kerala. TCC is situated
at Udyogamandal, Cochin. Incorporated in 1951, TCC is the oldest Chlor-alkali
unit in the country and also is the only Chlor- alkali unit in the state of Kerala.
TCC is a chemical industry and manufactures products like caustic soda,
chlorine, hydrochloric acid, soda bleach and related chemicals. TCC was also
the first company in India to install the mercury cell plant for the manufacture
of caustic soda.. With continuous efforts for up gradation of technology and
professional management the company has a good track record of operation and
healthy industrial relations. TCC is also an ISO 9001: 2000 certified company.
The company supports a large number of industrial units by supplying basic
chemicals. TCC is conscious about its social responsibility and is dedicated to
maintain the quality of products.
3.1.1 HISTORY AND GROWTH OF TCC

The Travancore Cochin Chemicals Ltd was established in 1951 and started
commercial production in 1954. Initially it had an installed production capacity
of 20 tones of caustic soda per day. The technology employed was mercury cell
technology. The idea of establishing the unit was conceived by M/s Shehasayee
Brothers, the managing agent of FACT. The company was registered under the
name Travancore Mettur chemicals (TMC) in 1950 as a joint venture between
FACT and Mettur Chemicals. The idea was to supply hydrogen chloride gas to
FACT for making Ammonium Chloride for their newly set up ammonia plant.
As it was post second world war period, TMC could not raise sufficient fund to
take delivery of equipments arrived in Cochin port. Knowing that Chlor alkali
industry is being set up to other companies (M/S Hindustan Insecticides Ltd and
14

Indian rare earths Ltd) have started setting up their plants at Udyogamandal
with the hope to get Chlor alkali product for further processing.
The financial problem of TMC was taken up by the then Travancore Cochin
state Government. As the problem of TMC could affect three other companies,
Travancore Cochin State Government gave massive financial assistance to
TMC and with that the company was renamed as Travancore Cochin Chemicals
Ltd (TCC) in 1951. Commercial production started in 1954 with 20 tons per day
caustic soda production capacity. The technology employed was mercury cell
technology. The installed capacity was increased stage wise to 160 TPD
employing mercury cell technology. In 1997 TCC commission a 100 TPD
caustic soda plant employing membrane cell technology from Asahi Glass
Company, Japan. In 2002 the capacity of AGC plant was enhanced to 125 TPD.
In 2004 the last mercury cell plant was decommission. In 2005 and 2006 a 25
TPD capacity membrane cell plant each were installed and plants were supplied
by M/s Uhde Company, Germany. The total installed capacity at present is 175
TPD of caustic soda. Travancore Cochin Chemicals is the first unit in India to
produce Rayon grade Caustic soda. The company has implemented a number of
technical renovations to improve productivity of the plant.
3.1.2 PRESENT SITUATION

TCC is the only Chlor alkali unit in Kerala. In India, there are about 40 Chlor-
alkali units as the companys competitors. Now TCC owes 109 acres of land
and more than 700 people are working in three shifts. Plants are functioning in
full capacity. Plants function on a 24x7 basis. The company has helped in
attracting new industries to Kerala. These industries include Indian Rare Earth
Ltd, Hindustan Insecticides Ltd, Hindustan News Print Ltd, Kerala Minerals
and Metals Ltd etc. These industries depend on TCC for the supply of the basic
chemicals.
15

At present the company having the installed capacity of 175 TPD of caustic
soda. 125 TPD from M/s ASAHI GLASS COMPNAY, Japan, commissioned in
1997. 25 tons per day bipolar membrane cell caustic soda plant supplied by M/s
UHDE Germany was commissioned in July 2005 and another 25 TPD
membrane cell plant from UHDE, Germany was commissioned in August 2006.
The registered office and the factory of the company is situated at Eloor,
Udyogamandal -683501, Ernakulam Dist, Kerala. Company has obtained an
ISO certification 9001-2001 in the year 2006. The company is working towards
ISO 14000 standards currently.
Table 3.1.1: PRESENT CAPITAL FORMATION
INVESTORS SHARE (%)
Govt. of Kerala 80%
KSIDC 17%
FACT 2%
Vinyl Investment Ltd, Chennai 1%
Total 100%

3.1.3 INFRASTRUCTURE

The company is conveniently situated at Udyogamandal, industrial area, Kerala.
It is situated on the banks of Periyar River and hence has abundant supply of
water. Out of the 109 acres of land on which TCC is situated, 20 acres are
leased out to M/s BSES Kerala Power Ltd. TCC receives lease rent on this. In
addition to the plant and buildings, it has a full fledge housing colony for the
accommodation of its employees. The company also has a water treatment plant
from Periyar River. This water treatment plant has a capacity of 5mgd. For
electricity supply, TCC also has a 110 KV electricity substation. The company
has also now lent out some land for an ISRO project, which uses the chemicals
which are made in the company for the production of fuels for the rockets.
16

3.1.4 CORPORATE MISSION AND VISION

3.1.4.1 Mission
TCC is committed to supply quality chemicals at competitive prices to
customers. Customer satisfaction, concern for environment and safety are their
priorities.
3.1.4.2 Vision
Utmost level of conversation of all resources including energy
Cost effectiveness in all operations.
Regular up gradation of technologies used in processing
Compliance with laws and statutory regulation.
Capacity up gradation by another 50 TPD
3.1.5 CORPORATE OBJECTIVES

1. To produce and market chemicals such as caustic soda, liquid chlorine,
hydrochloric acid carefully and in environmentally sound manner.
2. To make maximum profit from projects taken up.
3. To continuously upgrade the quality of Human Resource of the company and
promote organizational development
4. To continuously improve the plant and operational safety and abide by the
statutory pollution control standards
5. To ensure corporate growth by expansion and diversification.
6. To care the environment around.
7. To maintain optimum level of efficiency and productivity and optimum level
of investment.

17

3.1.6 POLICIES FOLLOWED BY TCC

3.1.6.1 Quality Policy
We are committed to enhance customer satisfaction by providing
products and related services complying with a continually improving quality
management system.
3.1.6.2 Health and Safety Policy
TCC is committed to provide every one of its employees and the related
public an accident-free and healthy environment in its efforts to
manufacture high quality products at competitive prices. The company
will comply with all statutory requirements in this regard.
The company will provide a work environment in which identified
hazards are controlled, if elimination is not feasible and will provide
personal protective equipments wherever necessary.
Accident prevention is the direct responsibility of the Line Management
and will be an important criterion for performance appraisal. Line
Management will ensure that all safety measures are incorporated in the
operating and maintenance procedures as well as in any process
technology changes in the plant/infrastructure.
Consideration of health and safety will be given proper weight age in
selection and deployment of the personnel.
The company will ensure that health and safety aspects are given due
consideration in decision regarding purchase of plant equipments,
machinery and materials.
Every employee of the company shall perform his/her job adopting Safe
and proper work methods and using appropriate Safety equipments
understanding that their career advancement is linked with SAFE
performance.
18

Contractors, sub-contract workers, transporters and visitors entering the
factory shall be required to observe health and safety practices of the
company in all their activities.
All contract jobs will be carried only through the laid down procedures
with appropriate supervision.
The company will carry out safety audits, risk assessment studies,
emergency mock drills, and periodic assessment of health of its
employees as well as status place hazards be identified, appropriately
evaluated and effectively controlled to achieve this goal.
Appropriate training programs are designed and imparted to suit the
requirements of different groups namely, customers, contract workers,
drivers, cleaners.
Regular and periodic training is imparted to workers and officers in
batches in accordance with a prepared schedule.
Training on safety equipments and handling of hazardous chemicals is
imparted to the employees.

3.1.6.3 Energy Policy
Travancore-Cochin Chemicals is always committed towards the conservation of
energy by all possible means. They strive for:
Technological up gradation to reduce specific energy consumption
Conducting energy conservation studies including energy audit and
adopting the apt measures for conserving energy
Contacting other organizations and enriching our experiences on energy
conservation
Using renewable energy sources to the extent possible
19

Disseminating knowledge and information on energy conservation to our
employees
Low energy fuels also to be tried depending upon feasibility.
3.1.7 MANAGEMENT OF THE COMPANY

There are 10 directors for the company. As the major shareholder, Government
of Kerala nominates the BOD Professionals. The managing Director is the only
full time director in the board. The Principal Secretary of industrial Department
is the chairman.
Table 3.1.2: BOARD OF DIRECTORS
Shri.N.R.Subramaniam
Chairman & Managing Director
The Travancore-Cochin Chemicals Ltd
CHAIRMAN &
MANAGING
DIRECTOR
Shri K.S.Srinivas, IAS
Special Secretary to Government
Industries (Investment Promotion) Department
Government of Kerala
DIRECTOR
Shri. E.K. Prakash
Special Secretary (Finance),
Government of Kerala.
DIRECTOR

Shri. M.R. Karmachandran, NOMINEE
DIRECTOR KSIDC

Shri. Razin Rahman C.P

DIRECTOR

Shri. Abdul Azeez Maniyoor,

DIRECTOR





20

Table 3.1.3: STAGES OF GROWTH
1956 A continuous caustic fusion plant with a capacity to upgrade up to
20 tons of caustic soda per day was set up.
1958 A chlorine Liquefied plant was added mainly to meet demand from the
newly set up DDT plant of Hindustan Insecticides limited, Ernakulam
1960 Production of caustic soda was raised to 30 tons per day
1963 The caustic soda capacity was raised to new level of 40 TPD. The
company established a new unit for the manufacture of sodium hydro
sulphate with rated capacity of 30TPD.
1967 The capacity of caustic soda plant was raised to 60TPD as per third stage
of expansion
1970 A 60 TPD caustic soda CCF plant was set up along with its own water
treatment plant.
1975 As the fourth stage expansion, a 100 TPD caustic soda plant was set up.
This employed Mercury Cell Technology.
1976 The company set its own water plumbing and purification station
1980 Export of commercial hydrochloric acid to Gulf countries
1983 Installed and indigenously developed plant to cover mercury from
effluents
1987 Installed hydrogen- firing system in continuous caustic fusion plant
1990 Brine Decolonization units commissioned
1992 A Research &Development section was set up
1997 The company planned to setup a technology for the production of caustic
soda in collaboration with ASAHI GLASS of Japan, with a capacity of
100 TPD, using Membrane Cell technology.
2000 The company set up a Brine purification plant
2003 The company commissioned a new continuous Caustic Fusion plant and
increased the membrane cell capacity to 125 TPD.
21

2005 The company commissioned a new caustic soda plant with a plant
capacity of 25 TPD- M/s UHDE (I)
2006 The company commissioned a new caustic soda plant with a plant
capacity of 25 TPD- M/s UHDE (II)
At present total installed capacity is 175 tpd. Caustic Fusion plant for 100 tpd.

3.1.8 ACHIEVEMENTS
TCC is in the forefront to adopt and incorporate the latest technology in its
plants. Different innovative and modern schemes were implemented over the
course of time. Hence TCC continue to be the competitive strength in the Chlor-
alkali industry. With expanded plants and higher production capacity, TCC has
come out to be the profitable public sector undertaking. TCC has bestowed with
various awards for excellent performance with regard to production,
productivity, energy conservation and environmental protection, which is
considered as an award for commitment rather than for efficiency.
Table 3.1.4: ACHIEVEMENTS
YEAR ACHIEVEMENTS
1981 Best Performance Award for Safety in the State from Directorate of
Factories & Boilers, Government of Kerala
1988-89 Best Pollution Control Award under group "Heavy Inorganic Industries"
in Kerala, from Kerala State Pollution Control Board
1989 Award for Best Performance in Safety in India under "Chemical
Industries" group from National Safety Council.
1989-90 Prize for Productivity from Kerala State Productivity Council.
1993 Best Performance award for Energy Conservation in the State of Kerala
under group "Chemical & Fertilizers above 3000 KVA" from
Government of Kerala
1994-95 Best Performance award for the Productivity in the State of Kerala under
22

group "Large Industries" from Kerala State Productivity Council
1995-96 Best Performance award for Productivity in the State of Kerala under
group "Large Industries" from Kerala State Productivity Council.
1998 Best performance award for Energy Conservation in the State of Kerala
under group "Major Industries" from Energy Management Centre, Govt.
of Kerala.
1998 Performance award for Energy Conservation under group "Chlor-alkali
Sector", Ministry of Power, Government of India.
2003 Kerala State Energy Conservation Award (2000) in the category of Large
Scale industry
2005 National Energy Conservation Award "Chlor-alkali Sector"
2008 Pollution Control award from Kerala State Pollution Control Board

3.1.9 BANKS
State Bank of Travancore
State Bank of Hyderabad
Union Bank of India
Indian Overseas Bank
ICICI Bank

3.1.10 TRADE UNIONS

3.1.10.1 Recognized trade union
TCC employees association
3.1.10.2 Unrecognized trade union
Thozhilali union
AITUC
BMS
TCC employees union (INTUC)
23

3.1.11 PRODUCT PROFILE
Caustic soda, Chlorine and Hydrochloric acid form the backbone of chemical
industry. These are the main chemicals which are produced in TCC. TCCs
main raw materials are common salt (sodium chloride) electricity and water.
The company requires about 3700 units of electricity and 2 tones of salt per
tones of caustic soda produced. Common salt is mainly imported from Gujarat
and Tamil Nadu. Major products are the following.

3.1.11.1 Product-1

Caustic Soda (NaOH)
Caustic soda is a basic alkali. It came into being in the latter half of 19th century
with the development of electrolysis. Caustic soda Lye, obtained from
Membrane Cell is a clear colorless, odorless and soapy liquid. TCC is producing
two types of Caustic Soda Lye of concentration 30-33% and 50%.
USES
A chemical for dissolving out extraneous matter from wood
For preparing pure cellulose and for the preparation of Alkali
cellulose and for the production of viscose solution
As specification agent
In bleaching, dyeing and mercerizing.
For processing monazite and refining of Bauxite.
A purification agent and absorbent for acidic gases
A clearing agent
For refining petroleum fractions
Reagent for production of various organic chemicals.


24

INDUSTRIES SERVED

Rayon
Paper
Soaps
Textiles
Mineral and rare earth elements
Fertilizers
Heavy Chemicals
Engineering
Drugs& Pharmaceuticals
Petroleum refining
3.1.11.2 Product-2
Chlorine (Cl2)
Chlorine, a product obtained in the manufacturing process of Caustic soda is an
equally important basic chemical. It is renowned water purifying chemical. It is
greenish yellow gas. Chlorine as sold after liquefying.
USES
Producing insecticides (DDT, BHC etc.) and pesticides like Aldrin
In purifying drinking water and sterilizing sewage effluents.
For manufacturing PVC & allied co-polymers
As a bleaching agent
For producing chloramines & it organic derivatives
For upgrading titanium content in limonite


25

INDUSTRIES SERVED
Insecticides
Water purification
Plastics
Paper& pulp
Textiles
Sugar
Mineral processing
3.1.11.3 Product-3
Hydrochloric Acid (HCl)
TCC also produces high purity Hydrochloric acid, it is yellowish green colour.
The HCl produced have concentration 30-34%
INDUSTRIES SERVED
Fertilizers
Minerals
Ossien
Starch Industry
Plastic
Engineering
3.1.11.4 PRODUCT -4
Sodium hypochlorite:
Sodium Hypochlorite, known as soda Bleach, finds its application in
bleaching& disinfectant and also in the extraction of rare earth chemicals. It is a
pale yellowish green colour liquid. Soda bleach is the only branded product that
company producing, brand name is Eko clean.
26

USES
As a bleaching agent
As germicide& cleaning agent
For sterilization

INDUSTRIES SERVED
Textile
Paper industry
3.1.11.5 PRODUCT-5
Caustic soda Flakes
Caustic soda Lye is fused to product Caustic Soda flakes. There is a continuous
caustic fusion plant that produces Caustic soda flakes. It is white deliquescent
solid in flakes form. Caustic soda flake have concentration 98.99%.













27

3.2 ORGANISATIONAL STRUCTURE

Fig 3.2.1: ORGANIZATIONAL STRUCTURE










D









MD
GM
GM
AGM (M) T) DGM (PJ) DGM (TS) AGM (HR) DGM (E) DGM (OP) AGM (MT) DFC
DFM2
)

DFM3
M
DFM(1)
C))
AGM (E)
CE(PJ2)
)))
SAO
SAO
CE (PJ1) MPL2 MPL1
SAO
CE(MP
))PM
MMM
MMM
CE(M) CEU CE(C)
MST
MP
A PRO
M (HR&W)
DM(M)
)))
DM(C) DM (MP) MIC
MO CSO
DM(S)
AGM (TS)
AAO
DM (U)
DM (CS)
DM(PR2)
SE(MP) SE(M) SE(C)
DM (PR1)
ASO
CE (TS)
APO
DMP
Ex.TR (M) Ex.TR
M
SE (U) SE2 SE1
DM (TS)
Ex.TR
APO
SE (TS)
Ex.
.Tr.
Ex
..Tr.
28


The organizational structure involves arrangement of activities and
assignment of personnel to these to achieve organizational goals. It is a way by
which various parts of an organization are tied together in a coordinate manner
and it illustrates the various relationship among various levels of the hierarchy
within the organization as well as horizontal relationship among various aspects
of the organizational operations. As well planned organizational structure
results in better use of resources.
The main functional departments are
Operation department
Marketing department
H R D department
Finance department
Project Department
Engineering department
Electrical and Instrumentation department













29

3.3 FUNCTIONAL AREAS

3.3.1 OPERATIONS DEPARTMENT

Fig 3.3.1 Operations Departmental structure














Operations department is the most important department of TCC. This
department carries out the manufacturing of all the products. The company
carries out continuous production and hence this department plays a very crucial
role in TCC. This department is headed by Manager Operation, who is reporting
to the General Manager Technical.
Assist. General Manager
Operations
Manager Plant1
Manager Plant2
Executive Trainee
Deputy Manager
Production 2

Deputy Manager
Production 1
Executive Trainee

Senior Engineer
Operation 2

Senior Engineer
Operation 1

30


3.3.1.1 DUTIES AND RESPONSIBILITIES OF ASSISTANT GENERAL
MANAGER
Head of operations department
Fixes the monthly target according to the market operations
AGM is the designated emergency controller during any hazardous
incidents of leakage and emission of toxic gases/fluid etc.
He has the administration control over the operations department.
3.3.1.2 DUTIES AND RESPONSIBILITY OF PLANT MANAGER (PLM):
The custodian of the plant.
Plans production activities to meet the production target set by the AGM
He is responsible for the material consumption
He plans the shut down activities and carries out the maintenance work of
the plant.
He coordinates the operation functions with the manager of other
departments for the smooth functioning of the plant.

3.3.1.3 OBJECTIVES OF OPERATION DEPARMENT
Maximizing production confirming to product specification
Optimizing the consumption on electricity and purification chemicals
Maximize the availabilities on electrolyses operation
Minimize the production overheads



31


3.3.1.4 EVOLUTION OF TECHNOLOGY
Ist Generation: Diaphragm cell Technology
TCC started with this technology. It consists of an anode, cathode and
diaphragm. Anode portion and cathode portion is separated by an asbestoses
diaphragm. The main drawback of this technology is that it gives NaOH having
concentration only 15%. This technology was replaced by Mercury Cell
Technology by 1964
IInd Generation: Mercury Cell Technology
Here Mercury was used as cathode and Titanium as anode. It gives caustic soda
with 50% concentration. But the main draw backs are high energy consumption
and pollution. Because of pollution problem this technology have removed
completely and replaced by membrane cell Technology by 1990s.
IIIrd Generation: Membrane Cell Technology
This is the latest technology being used now. It started from 1997. The ion
exchange membrane cell plant is equipped from 20 electrolyses consist on three
clocks on monopole fitter press type electrolyses and it corresponds to three
electrolyses. The electrolysis consists of copper cathode and titanium anode
chambers separated by in ion exchanges membrane made of tetra fluro ethylene
and vinyl ether.

3.3.1.5 PLANTS IN TCC
Three plants are involved in the production.
AGC Plant
It is designed and commissioned by ASAHII Glass Company Ltd., Japan. The
plant was commissioned on 29th May 1997. The products are caustic soda
(NaOH), commercial hydrochloric acid (HCl) and liquid Chlorine. It consists of
20 electrolyses.

32




Table 3.3.1: Major products and production capacity
Products Capacity
NaOH lye 170TPD
Liquid chloride 90 TPD
Commercial HCL 150 TPD
Sodium hypochlorite 40 TPD
Caustic soda flakes 100 TPD
UHDE II Plant
The plant is designed by UHDE infrastructure Ltd, Germany. The plant was
commissioned on 2005. The plant produced only 25 TPD of 32% caustic soda
lye. It consists of only one electrolyser with 54 elements.
UHDE II Plant
The plant is designed by UHDE infrastructure Ltd, Germany. The plant was
commissioned only 15th August 2006. This has also a production capacity of 25
TPD of 32% NaOH lye with one electrolysis with 54 elements.
3.3.1.6 RAW MAERIALS USED
The raw materials used in the production in TCC are
Common salt
Electricity
Water






33

Fig 3.3.2 PRODUCTION PROCESS FLOW DIAGRAM


3.3.1.7 TECHNOLOGY USED FOR THE PRODUCTION OF TCC
The technology used in TCC is the membrane cell technology which is the
latest technology.

3.3.1.8 PROCESS FOLLOWED
The process followed for the production in TCC is electrolysis of brine.
RAW SALT
BRINE SOLUTION
BRINE
PURIFICATION
ELECTROLYSIS
CHLORINE
CHLORINE
TREATMENT
CHLORINE
LIQUIFICATION
LIQUID CHLORINE
HYDROGEN GAS
HYDROGEN
TREATMENT
HCL SYNTHESIS
COMMERCIAL HCL
ACID
32% CAUSTIC
SODA
CCF PLANT
SALE
DECOMPOSITION
DECHLORINATION
34


3.3.1.9 PROCESS DESCRIPTION
Preparation and purification brine (solution of raw salt and water) are common
for AGC, UHDE I & UHDE II plants.
The stages on production processes are:
1. Brine preparation and primary braise purification
2. Secondary brine purification
3. Electrolysis
4. Chlorine treatment and liquefaction
5. Hydrogen treatment and HCL synthesis
6. Continuous Caustic Fusion
7. Soda bleach preparation

3.3.1.9.1 Brine Preparation and Primary Purification
Sodium Chloride or salt is fed into the saturator using bucket elevators, where it
gets mixed with water. This solution of required concentration goes to
precipitation tank A& B and a mixer tank where chemicals like barium
carbonate, sodium carbonated and caustic soda are added to remove sulphates,
calcium , and magnesium impurities. The solution then goes to the clarifier
where 90% of the precipitates are allowed to settle. The clarified brine is passed
through Anthracite filters where 10% precipitates are separated.
HCL is added to the filtered brine tank to convert impurities to ionic form. At
the suction of filtered brine pump sodium bisulphate solution is added to
remove the chlorine content and caustic soda lye is added to make the pH
35

between 8.5 & 9.5. Brine is to be admitted to the secondary purification system
only after the desired purity level is attained.
3.3.1.9.2 Secondary Brine Purification
The secondary brine purification system consists of four ion exchange filters.
The primary purified brine is passed through the ion exchange filters where it
undergoes ion exchange process .Ion exchange materials are insoluble acids and
bases, which when converted to salts remain insoluble.
The most popular ion exchange materials are synthetic organic polymers. These
ion exchange materials are used in columns in which solution containing ionic
impurities likes calcium and magnesium is in contact with the resin usually
through downward flow through the resin bed. The saturated resin is then
regenerated to its original state by using acid and alkali solutions. The
regenerated resin is then reused. The purity of the feed brine in the Membrane
cell process is very important and it affects the performance and life of the
membrane.
3.3.1.9.3 Electrolysis
The secondary purified brine is fed to the brine head tank after cooling and is
admitted for the electrolysis. De-mineralized water is also admitted to the
electrolyser. Direct current (DC) supply is connected to the anode and cathode
and current is applied to the electrolyser. During electrolysis, caustic soda is
produced at the cathode, which is of 32% concentration. Hydrogen gas is also
formed in the cathode chamber. Chlorine is formed in the anode from where the
depleted or weakened brine solution also comes out. Caustic Soda is pumped
into storage tanks, hydrogen and chlorine goes to the respective treatment
sections.
3.3.1.9.4 Chlorine Treatment and liquefaction
Chlorine treatment involves cooling, washing, filtration, drying, compression,
storage and filling. The chlorine from the anode chamber of electrolyzes is first
cooled to 30 o C with cooling tower water. A final trace of salt is removed by
36

using a wet chlorine filter; it is then again cooled to 1oC. After this, the chlorine
is separated for the HCL synthesis and liquefaction.
The chlorine is compressed using acid ring compressors. The compressed
chlorine passes to a liquefier where it is cooled using a refrigeration system in
which Freon is used as refrigerant. The chlorine turns into a liquid from and are
stored in liquid chlorine storage tanks. The filling of chlorine into cylinders of
capacities 1 tones, 100Kg etc is done at the liquid chlorine filling station, using
dry compressed air. Chlorine for the HCL synthesis units is fed by using
chlorine blowers. Before this the chlorine is cooled. It is then fed into ovens
along with hydrogen for the synthesis of HCL acid.
3.3.1.9.5 HCL synthesis and hydrogen treatment
Hydrogen gas from the electrolyzes is washed with water in a washing chamber,
cooled to about 300C with a heat exchanger, and admitted directly to hydrogen
holder, after separating the condensate. The hydrogen gas is used for the HCL
synthesis and also a part as fuel in the CCF plant operation. Hydrogen for HCL
synthesis is fed to an oven using hydrogen blowers. Here it is burned in the
presence of chlorine. The resulting HCL gas is absorbed in water flowing down
the oven. The hydrogen holder has a pressure venting mechanism whereby the
excess hydrogen is allowed to escape to the atmosphere.
3.3.1.9.6 Continuous Caustic Fusion
Caustic fusion is done in CCF (continues caustic fusion) plant, CCF plant is
mainly for concentrating 32% NaOH Lye to 50% and 98-99% as flakes. The
32% NaOH Lye is stored in the main storage tank, a part of which goes for sale.
The remaining part of 32% passed through three evaporates. (EV1, EV2& EV3)
In 1st evaporates (EV1) the NaOH is heated using the vapors generated in EV2
and EV3. The stream from EV1 is then passed to EV2 and it is evaporated in
vacuum at 70-800C. Then it passed through a shell and tube heat exchanger and
the outcome will be 50% NaOH Lye. A portion of 50% NaOH lye goes for
sales. The remaining portion of NaOH lye is passed through EV3 and heated
37

using a eutectic mixture which containing 53% KNO3, 40% NaNO2 and 7%
NaNO3 and finally we get 98-99% NaOH as flakes.
3.3.1.9.7 Soda Bleach Preparation
Soda bleach plant, which is a part of AGC plant, is developed for the utilization
of excess and waste chlorine. Chlorine cant be disposed as a waste gas. So it
has to be absorbed and stored somewhere. Even though soda bleach is
considered as a side product, the main objective is the efficient and harmless
disposal of waste chlorine. A part of 32% NaOH lye and chlorine is used for the
preparation of soda bleach. The excess chlorine at the time of plants shut down
goes for soda bleach preparation.
3.3.1.10 IRON EXCHANGE MEMBRANE CELL PROCESS
For electrolysis, secondary purified brine is fed into the anode chamber and
purified water is fed into the cathode chamber. The reaction of the substance in
the electrolyses will take place upon applying DC current to the cell.
The electrolysis process in the cell starts with the salt solution (sodium chloride-
NaCl) being fed into the anode chamber of the cell. The electrolysis of sodium
chloride occurs, converting chloride ions into chlorine at the anode mesh.
Sodium ions move into the cathode chamber through the ion exchange
membrane. Generated chlorine gas flows up to the anode gas separator by the
driving force due to the lift effect. The chlorine gas is separated here and the
anolyte is recycled over as depleted brine. The depleted brine solution is
removed from the anode chamber through an outlet at its bottom. In the cathode
chamber, decomposition of water occurs, producing hydrogen gas and
hydroxide (OH-) ions. Hydroxide ions form caustic soda together with the
sodium ions from the anode side. The hydrogen gas and caustic soda gas flows
up to the cathode gas separator by gas lift effect. The caustic soda lye is recycles
through the circulation pipe. The membrane neither permits the movement of
chloride ions and NaCl diffusion to the cathode side, nor the transfer of the
hydroxide ion to the anode chamber. Transfer of these ions will result in loss of
38

current efficiency. Hydrogen ions if any, diffused from the cathode chamber to
the anode chamber will produce oxygen gas, hypochlorite and chlorate by
reaction with chlorine gas.
3.3.1.10.1 Advantages Of Membrane Cell Process
1. Flexibility in operations
2. High purity product
3. Reduces power consumption of membrane to 270 KW per hour compared to
4000 KW per hour of mercury cell
4. Lower cost and high tolerance for power fluctuations
5. Elimination of environmental pollution through the avoidance of the use of
mercury
3.3.1.11 WATER TREATMENT PLANT
The water supply consists of a pumping station at Edamula river side near
Kalamassery Bridge located near TCC colony, clear water reservoir and pump
house at the factory site and pipelines. The quality of water available from the
Edamula River is within the acceptable limits with respect to various parameters
except for PH correction and sterilization. It consists of coagulation,
sedimentation, filtration and chlorination process.
3.3.1.12 CCF PLANT
This plant has one of the most advanced technologies. It is suitable for the
production of export grade caustic soda flakes from NaOH solution, which is
generated in ion exchange membrane cell. It is designed for optimum low
energy consumption. The equipments and plant are proven to be safe in
operation.





39

Table 3.3.1.1: Types of machines used
NO

MACHINE

NUMBER OF MACHINE

1
2
3
4
5
6
7
8
9
10
11
12
MEMBRANE CELL
ELECTROLYSER
CHLORINE COMPRESSOR
HCL SYNTHESIS OVEN
CHLORINE LIQUIFIER
RECTIFIER
AIR BLOWER
AIR COMPRESSORS
WATER PUMP
BRINE PUMP
SALT ELEVATOR
BRINE SLUDGE FILTER
BOILER
20+2
3
6
2
4
4
6
3
4
4
2
2













40

3.3.2 MARKETING DEPARTMENT
Fig 3.3.2.1 Marketing Department Structure












TCC is the only Chlor-alkali unit in Kerala and hence it is more or less a
monopoly in Kerala market. However, nationwide there are around 40
competitors. TCC gives high importance for customer satisfaction. They
maintain close contact products. Type of market is buyer market. Marketing
department consists of two sections:
a. Office section
b. Issue section
All documentation works come under office section and all the work relating to
sales come under issue section. TCC adopts marketing strategy according to the
product nature, market situation, demand for the product etc. TCC currently has
about 80% of the total market share in the state. Of the total production, 60% of
the goods are sold outside Kerala and 40% within the state.
Deputy Manager
Sales

Asst. Sales Officer

Asst. General
Manager Marketing

41

3.3.2.1 Main Functions Of Office Section
Preparation of sales quotation, letters, amendments etc, maintenance of
sales officers register books and other necessary information
Preparation of sales budget, sales plan, monthly allotments etc,
correspondence with parties and follow up of routine and regular matters
Preparation of sales order, dispatch and delivery notes
Up keeping of all files up to date

3.3.2.2 Main Functions Of Issue Section
Preparation of schedule of dispatch and actual dispatch
Execution of sales offers
Advising parties about the dispatch effected
Maintenance of daily stock registers

3.3.2.3 Duties Of Deputy Marketing Manager
1. Directly responsible for the sales and distribution of the products.
2. Responsible for maintaining customer satisfaction.
3. Responsible for implementing the product policy.
4. Responsible for organizing and coordinating various aspects of marketing
including market research, sales forecast, advertising,
5. Sales promotion and transport.
6. DMM have crucial role in price fixation.
7. Responsible regarding after sale service and Complaint handling.


42

3.3.2.4Duties Of Marketing Manager (Sales)
1. Concerned with the office section of the department
2. Responsible for tender issue process.

3.3.2.5 Competitors
There are about 40 companies in India which are producing the same kind of
products that TCC in manufacturing. Of the 40 companies, 12 are concentrated
in the southern part of India. All these companies are private sector companies
except for TCC. Some of the competitors are:
1. Chemfab Alkalis Ltd, Pondicherry
2. Andra Sugar Ltd
3. DCW Ltd, Mettur
4. Kothari Petrochemical Ltd
5. Tamil Nadu Petro products Ltd
6. SPIC Chennai
7. Sree Royal Seema Alkalis, Andhra Pradesh
8. Chemplast, Mettur
9. Chemtab, Pondicherry

3.3.2.6 Customers
1. Kerala Water Authority
2. Hindustan Unilever Ltd
3. Hindustan Insecticides Ltd
4. Bharat Petroleum Ltd
5. Kerala Ceramics Ltd
6. Kerala Minerals and Metals Ltd
7. Hindustan Raw Earth Ltd
43

8. Steel Authority of India Ltd
9. Tamil Nadu Newsprint Ltd
10. Indian Oil Corporation
11. Indian Aluminium Company Ltd
12. Kerala Chemicals and Proteins Ltd
13. Travancore Titanium Products Ltd
14. South India Viscose Ltd
15. Karnataka Soap and Detergents
16. Hindustan Organic Chemicals Ltd
17. Grasim Industrial Ltd
18. Pigments India Ltd
19. Hindustan Newsprint Ltd
20. Binani Zinc Ltd
21. Travancore Rayons Ltd

3.3.2.7 THE MARKETING MIX
3.3.2.7.1 Product:
Caustic soda is a basic alkali entering into the manufacturing of a host of
articles of daily use like soap, paper, textiles etc. The caustic soda industry
actually came into existence in the latter half of 19th century, with the
development of the electrolytic process. Chlorine, a co-product in the process of
making caustic soda is equally important for the manufacture of plastic, textiles,
insecticides etc. Hydrochloric acid and sodium hypochlorite are the other 2
products which are used for the manufactures of Ossian, extraction of raw earth
rutile etc. Chemical industries in the state, big and small, depend on TCC for the
supply of caustic soda, chlorine, HCL and soda bleach.

44


Product development:
EKO CLEAN is a sanitation product. It is used as a preventive chemical in
the present scenario against the various contagious diseases in the state. Eko
Clean is sodium hypochlorite. This product reaches the market either via direct
marketing or through government agencies.

Table 3.3.2.1: PRICE LIST
PRODUCT

PRICE PER TONNE (Rs.)

CAUSTIC SODA
CAUSTIC SODA FLAKES
LIQUID CHLORINE
HCL ACID
SODIUM HYPOCHLORITE
25500
26500
9800
3000
4500

3.3.2.7.2 Pricing policy:
The Company has adopted differential pricing policy. The price is fixed through
negotiation for long term contracts. An open body named Alkali Manufactures
Association of India (AMAI) fixes the selling price for a particular period. Price
of the product is fixed by adding the production cost, excise duty, VAT and
freight charges. Tenders are issued to the customers with a price quoted and if it
turns out to be a lowest bid and satisfies the customers after the sales are done.
The major markets are Kerala, Karnataka and Tamil Nadu. Except caustic soda,
all other products are sold in South India. Long term contracts are being entered
with customers. Price concessions are given to long distance customers taking
freight element into account for transportation of the product, raw materials and
all other logistic purpose. Company has given contracts to outside agencies. The
contracts are made for each material and this is done on an annual basis.
45

3.3.2.7.3 Place:
Place is concerned with various methods of transporting and storing goods and
then making them available for the customers. Getting the right product to the
right place at the right time involves various distribution channels and systems.
Channels include direct selling to customers. There are no intermediaries as
such. For caustic soda, there are some agencies outside Kerala for marketing.
The entire marketing Functions are done from company office at
Udyogamandal and no marketing office outside the Company. All payments
take place through SBT (State Bank of Travancore).
3.3.2.7.4 Promotion:
All the products are industrial products. Since TCC is the only manufacture of
its product in the state, there is no real competition in the local market. The
customer are aware of the existence of the company and where and how to get
the products. Hence, there are not much promotional activities. Marketing factor
is price, which depends on the national and international price. The company
does advertise is some academic and trade journals. The promotional activities
include regular press releases, creation of documentation etc. Other promotional
channel includes the company website i.e. www.tcckerala.com.

3.3.2.8 ACTIVITIES OF MARKETING DEPARTMENT
Whenever a company places an advertisement regarding the requirement of
chemicals like caustic soda lye or flakes with the specification for the chemical
payment terms, quantity required, validity required, the companies that are
ready to supply viz., TCC, will send tenders to the required company. This is
known as a tender document. In a tender document mainly two documents are
specified:



46

a. Technical bid
This is the specification about the quality aspect of the product, how much
quantity can be given within a period as specified by the customer company etc.
These terms are well explained in the technical bid
b. Price bid
This is a part of the tender document which specifies the basic prices of the
company products. The document rate is given for bulk purchaser, payment
terms are also experienced. Along with the tender to the customer company, an
attractive Earnest Money Deposit (EMD) is also offered. This deposit is for the
purpose of assuring the customer company that if they accept TCCs offer,
certainly the product will be supplies to the customer. The deposit will be
refunded by the customer company after the purchase is made. The EMD is
attached only in the case of bulk purchase. After accepting the offer placed by
TCC, the customer company will place a purchase order. The purchase order
explains the details of the product, quantity, price etc. Sales order is placed and
will be verified by Deputy Marketing Manager. He makes arrangement in
respect of supplying product to the customer. The acceptance offer is usually by
selecting the lowest price.

3.3.2.9 SALES FORCE OF TCC
The sales force includes the Marketing Manager, Deputy Marketing Manager
and the employees in the department. The sales force is remunerated according
to the grade provided by the company. The sales force strategy is to motivate
the sales force and earn more sales for the company.

3.3.2.10 CREDIT POLICY
TCC has flexible credit policy. The companies which purchase above 200 tones
in a session are given 30-60 days credit. For 5-10 tones of purchase, ready
payment is to be made. The Marketing Manager and the Finance Manager
47

divided the companies for which the credit should be given and how much
credit has to be given. The Managing Director takes the final decision.

3.3.2.11 MARKET ANALYSIS
During the year 2005-06, the company achieved a record turnover of Rs.1.26
cores (including excise duty). This was due to higher production, increased
demand and better sales realization. There was recession toward the end of that
financial year but it was not reflected in TCC as the contracts were already
signed. As a result of the further recession, the company profit level was
decreasing. It has been determined that the company is on running on profits
again in this financial year.

3.3.2.11 OBSERVATIONS AND LIMITATIONS OF MARKETING
DEPARTMENT
The Marketing Department of TCC is structured as line organization. There is
no formal committee system existing in TCC. Products of TCC face a tough
competition in the market. The competitors are private companies. TCC is the
only Public Sector Undertaking (PSU) Company. In order to survive in the
market, market research is conducted to explore the new market and find out
new customers. Sodium hypochlorite, names as Eko Clean, is a cleaning
agent. It has been launched in the market. But there exists no proper system for
the promotion of this product. Eko Clean is a very promising product but proper
product awareness programs and sales promotion activities are not taken up.
Customer satisfaction trials are also not taken up. Due to the lack of market
analysis, there is no product innovation and hence TCC is unable to compete in
the market.



48

3.3.3 MATERIAL DEPARTMENT
Fig 3.3.3.1 Materials Department structure










Materials are important factors of production. The department plays an
important role in reducing cost and increasing profit. Materials department is
headed by Manager (Materials) and reports to DGMT. Going with the
technological change, it has computerized purchases and inventory control
system. The main materials used in the industry are given a 10 digit to avoid
complexities in handling it.
TCC have well defined materials department with three sections
1. Purchase section
2. Store section
3. Inventory Control Section


Assist. General Manager
Materials
Manager
Purrchase
Deputy Manager
Purchase
Manager
Inventory Control
Manager Store
49

3.3.3.1 PURCHASE SECTION
This section handles the purchase activities of the company. This department
procures various raw materials needed for production at the right time at the
right quality from the suppliers. If purchase value is more than 5 lakh,
notification should be given in any two newspaper and select the lowest bid
according to the verification by a committee, which includes purchases
manager, internal auditor and one person from finance department. If purchase
value is 5 lakh or less, purchase section itself can select the supplier either by
past experience or by the advice of the users of that particular material
Steps in Purchasing
Purchase intent: intender raises material procurement request to inventory
section.
If the material is not available, the form is send to purchase department
Enquiry: purchase department send enquiry to approved vendors
Receiving quotation: quotations are received and opened by committee,
which contain a member of purchase department, one from finance and
one from internal audit.
Preparation of comparative statement: quotation is tabulated and purchase
department prepare comparative statement. It is send to indenter. The
indenter gives recommendation
Approval: it is verified by audit section
Concurrence from audit department is obtained
Purchase order is send to the concerned party

3.3.3.2 STORE AND INVENTORY CONTROL SECTION
Stores department stores materials about 6,000 items are stored which may
include raw Materials, chemicals, electronics goods, equipments, sparer,
50

instrumentation etc. The various items are given 10 digit codes for easy
handing. It has computerized system of material handling.
3.3.3.2.1 Steps in Receiving Materials
1. Visual Inspection: First check the purchase order especially purchaser order
number. Only after this the materials is received and stored.
2. Preparation of receiving report
3. Inspection report: check whether the material is actual and inspection is
done by manager (stores)
4. Inspection report is made
5. Payment: Check the material, receiving intents and inspection report is
dispatched to finance department, purchase deparement5 and originator after the
inspection. Payment is done only after this.
6. Preparation of rejection report: If the material is no satisfied the
specifications goods rejection note is made. It is sent to purchase department.
They inform this to the party; new supply is done only after this.

3.3.3.2.2 Inventory Control Section
Inventory control is an essential function of store department. It helps to reduce
and increase profit of the organization. If the material is not coded, codification
is done by MIC for controlling the inventory, certain levels of inventory such as
maximum, minimum and recorder level is prepared. When the stock reaches the
recorder level, purchase request is made.

3.3.3.2.3Functions
1. Maintaining a minimum stock of items required by various departments.
2. Preparation of various reports regarding inventory
3. Evaluation of MPR
51

4. Preparations of material code system various items are given a 19 digit codes
for easy handling
5. Fix various levels such as minimum level maximum level recorder level,
danger level etc. for each item
6. Calculate and minimize lead time
7. Separate materials into Indian/import

3.3.3.2.4 Inventory Control Technique used in TCC
ABC Analysis
It is based on consumption and cost. Here the inventory is divide into 3
categories A, B, and C based on the value of stocks. Among the various items in
the stores 10% cover 70% of total cost of stocks are included in the A category.
Another 20% of stock covers 20% of total cost and falls in the B category. The
remaining 70% of materials in the stores contribute 10% of total cost of
materials and are include in the C category. Different controlling techniques are
applied for each category
3.3.3.2.5 Objective of Inventory control
Unwanted piling up of inventory is prevented
Material codification to avoid duplication
To determine the item to be stored
To determine which and how much to replenish
To keep suitable records.
To disclosure absolute



52

3.3.4 HUMAN RESOURCE DEPARTMENT
Fig 3.3.4.1 HRD/Training Department structure









Human resource is considered as the most vital assets of an organization. TCC
has a well-defined employee power. Human resource department is headed by
the manager (HRD). He organizes the training and development programs for
workers and managerial staff. Training helps in increasing the knowledge and
skills of the employees for specific purpose. It also helps in improving the
performance of the employees in the present job thereby improving their
capability to take up new assignments. MHRD does not come under the
Personnel department, the manager HRD reports to the DGMT.
3.3.4.1 MAIN FUNCTIONS OF HUMAN RESOURCE DEPARTMENT
1. Identifying training needs
2. Importing the required training
3. Maintain the training records


Asst.General Manager
HR
Manager HR & Welfare
Deputy Manager Catering
Services
Assistant Personal Officer
53

Apart from these three functions, HR department also looks into:
1. Staffing
2. Formulation and implementation of personnel policies
3. Disciplinary actions
4. Wage and salary administration
5. Recruitment
6. Selection

3.3.4.2 SCOPE
The procedure covers all aspect of training. Arrange suitable training for
employees for updating skills based on the identified training needs
Training advisory committee is responsible for suggesting training
requirements of various departments and disciplines
Formulating training programs on yearly basis.
The committee proposes a training calendar every year
Training needs for the year are identified and recorded by the department
heads.
The details are handed over to the training department by the respective
department heads. Training department does compilation of the identified
training needs of the employees. Necessary training programmers are arranged
by training department to cater the identified training needs of the employees.
Training department organizes training programmers using internal faculties or
engaging faculties from reputed organizations. The training department in
consultation with concerned department heads organizes in-house training
programmers on special requirements. From the employees who attend the in-
house training a feedback about the usefulness of the training is obtained and
consolidated. The concerned department then evaluates the feedback from the
54

participants after a period of 2-3 months to ascertain the effectiveness of the
training programmed. Employees are also sent to other reputed institutions for
training. A feedback from these institutions is received after the completion of
the training. Based on this feedback, the effectiveness of the training is
evaluated.
The achievements against annual training calendar is reviewed half yearly by
the departments. The number of programmers held, number of employee
participation, highlights of training, effectiveness, feedbacks etc is evaluated.
The training department maintains a register on the training programs attended
by the employees. The training department also maintains the format received
from participants after getting it evaluated by the concerned department heads.
The managerial personnel of the company are imparted training to improve their
managerial capabilities at the HRD centre of the company and outside
institutions that are depending upon TCC.
Training is imparted using both on the job and off the job training methods.
Training programs can be broadly classified as:

3.3.4.3.1 Internal Training
The HRD Department has the provision for conducting training. The HRD
centre is a hall, which can accommodate around 40-50 people and has a public
address system and an LCD projector.
Every month a three day training program is held for workers. The workers
education centre, under the labour ministry conducts these programs on a
contract basis, which is recorded annually. 20-25 workers from various sections
are selected every month. 4-5 officers from WEC conduct the training program
and towards the end fixes the dates for the programs next month in consultation
with the manager HRD. The topics covered include personality development,
management development program, interpersonal relations, impact of
globalization, effective communication and others.
55

Other in- house programs are conducted by agencies like Kerala State
productivity Council. In such programs the officers and the subjects are selected
by TCC. These are conducted mostly for workers on pollution, safety etc.
During installation of the Membrane plant, officers were sent to Japan for
training. They came back and trained others here. There for on-the- job training
is prevalent in all the sections of the company.
3.3.4.3.2 External Training Programs
TCC staffs are sent for external training based on the intimations received from
external agencies, Officers had been sending to Madras, Thrivananthapuram and
other places. But now since the company is not financially sound, it does not
send its employees to other states. The management doesnt keep aside budget
for training need.
3.3.4.3.3 Various other training Programs
Need based training: Here initially, it is to be determined that what is the
level of knowledge and skill an employee requires in a particular job.
Next is to determine how many employees have to be given this training.
On the basis of these needs, training is given to the employees.
General Training: In order to provide this type of training, one has to
determine what would be the trainees growth potentials, up to what level
he can grow in the organization etc. A performance appraisal has to be
done to evaluate his present performance. Training is then given on the
basis of the results of appraisal.
Induction Training: This training is mainly provided about the activities,
procedures, rules and polices etc. of the organization. It is also done to
know different people in different departments to get introduced to their
colleagues.
Customer Training: Customers and drivers of transportation are given
classes and training about handling chlorine and other products under
various situations. If any leakage happens during transportation, what are
56

the steps to be taken to counter the harmful effects that these chemicals
cause.
Technology Training: The employees are trained on the new
technologies that are entering the market. With efficiency of the
employees in these technologies, the company can increase its
production. Feedback from the employees about the training is obtained
and consolidated. The department also ascertains the effectiveness of
training program from the feed back after a period of 2-3 months.
Personality Development Programs: These programs are conducted by
experts from various reputed organizations and training is mainly for
managerial staff.

3.3.4.4 WORKERS PARTICIPATION IN MANAGEMENT
TCC encourages its workers to take part in the management of the company.
The workers are often consulted through their unions while implementing major
welfare programs of the company. In addition to this, workers are also included
in some of the committee for taking management decisions. These committees
are:
a. Canteen management committee
b. Safety committee
c. Shop floor committee
d. Grievance committee
e. Complaint committee
f. Tri-party committee




57

3.3.4.5 PERSONNEL DEPARMENT
3.3.4.5.1 Functions Of Personnel Department
Recruitment: This is done through professionals, executive employment
exchanges and P.S.C.
Manpower planning: Ascertaining the number of vacancies
Welfare functions: Including statutory and non- statutory welfare
measures.
Grievance handling as per the provisions of Industrial Dispute Act and as
per Factories Act.
Maintaining company discipline: as per standing order act
Industrial relations
Public relations
Job descriptions
Job specification
Job Analysis
Training
Staffing
Performance appraisal
Wage and salary administration
General Administration






58


Table 3.3.4.1: Man power of TCC
As per employee statement as on 01 July 2010
Category Number

Managerial Staff` 144

Employees

664
Total

808

3.3.4.6 LABOUR POLICIES
There was no labour unrest in the company for the past 20 years. An
atmosphere of trust and mutual understanding is developed between the
management and the labour unions. Long term agreements are in force for
various periods. They are intended to maintain, promote and improve industrial
and economic relations between the Company and its workers. The guidelines
for wage patters, promotion policies, leave grievance, fringe benefits,
production incentives etc, are determined in the agreement. These agreements
are the means for the settlement of all disputes and grievances, and these lead to
an efficient production and productivity.
The last long term agreement was signed in 2000 for a period of 4 years;
subsequent to this an interesting revision was given with effect from 1-04-2004.
The purpose of this agreement is to channelize collective bargaining relations,
to ensure speedy and fair disposal of grievance to maintain harmonious relation
between the Company and its men, to establish reasonable wage and their
working conditions to prevent strikes, shutdown and lockouts to increase
59

productivity, to ensure uninterrupted relationship based on a well understanding
of each other for the benefit of the industry and the nation.
3.3.4.7 MAN POWER PLANNING
An important function of the PM is that of manpower planning. The list of
retiring employees is prepared 3-4 year in advance and call for recruitment has
to be approved by the MD. The company will inform the vacancies to the Public
Service Commission around five years in advance. Any need for immediate
recruitment is made known to P.S.C.
Internal Sources
Kerala Public Service Commission
Technical and District Employment Exchange
Direct recruitment by advertising
3.3.4.8 PROMOTION POLICY
Promotion policy is divided into two, Non managerial Promotion Policy and
Managerial Promotion Policy.
Non Managerial Promotion Policy
Vacancies, other than to be filled by the recruitment through PSC, will be filled
as per the policy and procedure which are laid down through the terms of
settlement.
If a prospective employee has the minimum qualification and stipulated service,
then he can be considered for promotion upon evaluation of attendance, services
record and quality of work. If hands are not available for promotion in the
respective section/ department, it is notified on the company notice board.
Candidates with the same grade and stipulated length of service considered can
apply. If the candidates are not found available after test, a lower grade with
stipulated service can be given double promotion.
Managerial Promotion Policy
Here a stipulated length of service in the immediate lower grade is the main
criterion of promotion. Promotion from worker category to officer cadre shall
60

be ordered only with Board resolution and permission of Government. Time
bound grade promotions are considered in the case of the lowest two managerial
scales. Periods of ten years service can be considered for promotion.
3.3.4.9 WAGE AND SALARY ADMINISTRATION
A sound wage and salary administration plan exists in the organization. It has
established a fair and equitable compensation offering i.e., similar pay for
similar works. The settlement of wage and salary is done by the accounts
department. The trade unions/ management have a hand in making the wage and
salary plan. Managerial staff is allowed a maximum of 60 minutes late arrival in
the morning during a payroll month and workers allowed 5 minutes late moving
in a working day the worker/ manager is eligible to four hours short leave in the
evening. Punching cards helps to check in and aid check out of both workers
and managers. There are separate punching machines for the staff and
managers. Over time allowances are covered as per the Factories Act.
The workers work in shift. There are three shifts
1. 8a.m. - 4p.m.
2. 4p.m. - 12a.m.
3. 12a.m. - 8a.m.
The employees are paid shift allowances as per the shift. The night shifts are the
most well paid shift. The employees either work one shift i.e. 8am-4pm shift or
they work two shift i.e. 4pm-8am shift. Hence the employees need to work only
2 night and 2 day shifts in a week.

3.3.4.10 ADMINISTRATION OF LABOR WELFARE
The labour welfare measures of the company are planned, implemented and
monitored by its personnel department. The DPM & WO is in charge of co-
operating the labour welfare activities. He acts as a liaison officer between the
employees and employer. He puts the grievances of the labour before the
61

management and take all steps redress them. He assists the management in
exercise of their rights vis--vis each other.
3.3.4.11WELFARE PROGRAMME
Labour welfare measures in India can be classified as statutory and non-
statutory. Statutory welfare comprises those provisions which are binding on
employers by law. These relate to certain essential working conditions and
standards of health. Non- statutory welfare programs are provided voluntarily
by employers. For example, housing, education, recreation, transportation etc
are examples of non-statutory welfare measures. Thus statutory welfare ensure a
bare minimum of facilities and reasonably good working conditions, employers
are free to provide, non- statutory measures in varying degrees.
3.3.4.11.1Statutory Welfare Measures
Accident benefits
Annual Bonus
Drinking water
Occupational Health Centers
Rest rooms and Lunch rooms
Sitting facilities
Storing and drying facilities
Toilets and bathrooms
Allowances to employees
Educational Allowances
Bata( Perquisites or Amenities)
62

Overtime Allowances
Leave
3.3.4.11.2 Non- Statutory Welfare Measures
Housing Facilities
1. Main Colony
2. Main Colony Annexed
3. Pathtalam Colony
Medical Attendance Scheme
Group Accident Policy
Production Bonus
Voluntary Retirement Scheme
T.C.C. Canteen
Security and protection
Working Time
Performance Appraisal
3.3.4.12 Leave
The number of leave/holidays in a calendar year will be as follows:
Privilege Leave 30 days
Causal Leave 15 days
Sick Leave 15 days (for workmen to cover under ESI scheme)
3.3.4.13 Holidays
Paid Holidays 13 days (including four compulsory holiday)
3.3.4.14Gratuity
Gratuity is paid as per the Gratuity Act.
63

3.3.4.15 Bonus
3.3.4.15.1Production Bonus:
Production Bonus is paid on the basics of production. A production linked
bonus is given to the employees and this scheme is called Monthly Bonus
Scheme - 1998. As per this scheme the employees cooperate to maximize
production and minimize consumption of raw material and eliminate wastes.
3.3.4.15.2 Attendance Bonus:
Attendance bonus is paid to all permanent workmen on payroll month basis
along with wages for each month as per the schedules given below. However in
a payroll month in which the working days stipulated below are inadequate and
a workman attended all the available working days, he will be paid full
Attendance Bonus.

3.3.4.16 GRIEVANCE REDRESSAL
Grievances are to be solved effectively for smooth functioning of the
organization. Grievance redressal committee is hence statutory. It is legally
maintained. Trade unions are satisfied with the present condition in TCC and
hence there is no grievance redressal committee. The healthy employer-
employee relationship favours this.













64

3.3.5 FINANCE DEPARTMENT
Fig 3.3.5.1 Finance Department structure




Table 3.3.5.1 FIVE YEAR FINANCIAL HIGHLIGHTS
2009-10 2008 -09 2007 - 08 2006 -07 2005-06
Sales 10752 12063 9390 12321 10877
Other Income 686 313 1674 219 158
Stock: Increase/Decrease 332 -36 4 199 13
Total Income 11770 12340 11068 12739 11048
Material Consumed 1603 2043 1268 1648 1594
Power, Fuel, Stores & Repairs 6186 6374 5668 6702 5675
Managing Director
General Manager
Finance
CS & IA Deputy Finance
Officer
DM(CASH)
DM(CO& PF)
DFM (C)

DFM
(MA)

Senior Assist.
Officer

SAO (PF)

Assist. Officer

65

Employee Cost 2455 2333 2634 2369 1678
Selling & Administrative
Expenses
145 76 71 78 75
Other Expenses 49 38 35 49 12
Total Expenses 10438 10864 9676 10846 9034
Gross Margin 1332 1476 1392 1893 2014
Interest & Bank Charges 660 790 289 964 606
Depreciation 937 969 1012 920 827
Profit/Loss Before Prior Period
Items
-265 -283 91 9 581
Prior Period Items 15 10 -47 53 0
Profit/Loss Before Taxation -250 -273 44 62 581
Provision for
Taxation
Current Tax 0 -1 5 5 48
Fringe Benefit
Tax
-1 9 11 8 10
Income Tax Paid (prior period) 0 0 0 0 0
Net Profit / Loss -249 -281 28 49 523
Net Block 7222 7783 8558 9407 7998
Capital Work In Progress 230 41 11 1 942
Current Assets Loans and
Advances
4007 3636 3457 3717 3576
Current Liabilities and
Provisions
4898 4701 5474 5583 5859
Investments 2 2 2 2 0
Accumulated Loans 1315 1066 786 813 862
Total utilization 7878 7827 7340 8357 7519
Working Capital (WC) -891 -1065 -2017 -1866 -2283
Long Term Borrowing 4267 4008 4030 4574 4856
66

Short Term Borrowing 982 979 807 588 144
Share Capital (SC) 2131 2131 2131 2131 2131
Interest Accrued 125 338 0 1064 388
Deferred Payment liability 0 0 0 0 0
Total Sources 7878 7828 7340 8357 7519
Net worth 816 1065 1345 1318 1269
Capital Employed 6330 6718 6541 7541 5715
Finished Goods 590 247 295 308 109
Work in Progress 19 29 17 0 0
Raw Materials 367 535 244 248 280
Materials in Transit 55 90 62 64 161
Store and Spares 601 603 400 425 413
Sundry Debtors 1130 974 1229 1425 1099
Cash and Bank Balance 59 102 115 139 124
Loans and Advances 1186 1056 1095 1108 1386
Other Current Assets 0 0 0 0 4
Store and Spares in Transit 0 0 0 0 0
Total 4007 3636 3457 3717 3576
Cash Profit / Loss 688 689 1040 969 1350

Finance is a vital part of any business organization. It controls the procurement
of funds in the company. TCC has an efficient finance department headed by
the deputy finance controller, who is assisted by an efficient finance manager.
DFC is responsible for shaping the fortune of the company, preparing budgets,
raising funds and keeping different accounts. There is a management
information system to assist the finance department. Each cash payment and
receipt is stored in computer. The internal audit system is carried out in the
company by the initial audit section headed by the charted accountant. Regular
67

reports are given to the department heads for taking the corrective actions where
necessary. The budgets are reviewed, deviations are analyzed and necessary
corrective actions are taken. The main function of the bill section is passing of
bills, which is done after checking quotation, order and production. Bills are
passed after seeing that materials received is in conformity with the purchase
order.
The finance department itself is divided into different sectors like general
accounts, costing bills, establishing and provident fund and account section
which have its own function.
3.3.5.1 Information provided by finance department
P&L Account
Balance sheet
Statement of sales, production and capacity utilization
Cash flow statements
Statements regarding raw materials and process chemical variances
3.3.5.2 Types of bills
Invoice of suppliers
Maintenance bills for various departments
Petty work bills
Transportation bills

3.3.5.3 Function Of Finance Department
Purchase bills passing and payments to suppliers
Sales invoice recording
Debt collection
68

Budgeting and costing
Statutory auditing
Finance control
Handle all auditing and taxes
Sales accounting
Generation and utilization of funds
Finance book keeping and finalizing of accounts
Treasury operation
Cost record
Management information system and co-operate planning

TCC has an exclusive PF trust for their employees. The company gives money
to the trust. Trust invests this properly. Retirement benefits are issued from this
fund. The companys liability towards gratuity to employees is covered by
group gratuity scheme with the LIC of India.

3.3.5.4 The following are the banks in which the company has account
SBT Tuticorin
Indian Overseas Bank, Kochi
State Bank of Hyderabad, Kochi
Union Bank of India, Kochi
SBT Udyogamandal
SBT Ernakulam
ICICI, Kochi
69

3.3.5.5 Sources of funds
For efficient production and sale there must be adequate finance for fixed assets,
raw materials to meet day-to-day expenditure. The company raises funds by
mean of equity funds and borrowed fund. The share capital includes authorized,
issued, subscribed and paid up capital. Subsidy has been received from DSIR
and government of Kerala. Loans are obtained as term from IDBI and material
loans from government of Kerala.
3.3.5.6 Corporate Secretary And Internal Audit
Memorandum and articles of association, certificate of incorporation and other
statutory registers under the companies Act 1956 are maintained in the
companies registered office at TCC, Udyogamandal.

3.3.5.7 Duties And Responsibilities Of Company Secretary
Conducting board meeting of the organization.
The legal interpretation of the profit and loss statement and balance sheet.
Filing returns with register of companies.
Drafting agreements with the financial institution under the Companies
Act.
Conducting the annual general meeting and extra ordinary general
meeting if required.
Gratitude functions of the organization.
Providing public information under Right to Information Act, 2005.
Liaison with Registrar of companies, LIC official and other government
and private agencies.


70

3.3.5.8 Management Of The Company
A Board of Director consisting of one managing director, director finance and
three other part time directors of the company. Company has seven share
holders. They are government of Kerala, FACT, KSIDC, SHL trading limited
and two independent nominees from governmental of Kerala.
3.3.5.9 Internal Audit
The internal audit system in the company has been established since long. The
internal audit reports directly to MD. The staff of the department includes on
stock verifies and two senior assistants.
3.3.5.9.1Functions
Pre audit of all purchase and contract files.
Verification of sales order and related records.
Verification of petrol and wage salary of workers, staff and officers.
Incumbent proposal of management staff, salary fixation etc.
Verification of various vouchers, journal, ledgers, and other records of
financial and cost accounts sections.
Operational audit performance, management audit etc. if necessary.











71


3.3.6 PROJECT DEPARTMENT
Fig 3.3.6.1 Project and systems Department Structure















Project department is an independent department. The main function of this
department is the execution of new projects for the company. They prepare
feasibility reports and to invite tenders for the execution of new projects.




Senior Manager
Project 2

Senior Engineer
Project 1

Chief Engineer
Project 2

Chief Engineer
Project 1

Deputy General
Manager Technical

General Manager
Technical

72

3.3.6.1Functions Of Project Department
Planning feasibility study and implementation of new projects
Preparation of detailed report
Preparation of feasibility reports if approved by the management
Invitation of tenders through advertisements
Evaluation of tenders
Agreement
Execution
Hand over the new projects to operations department
3.3.6.2 New Projects in Discussion
Sale on drinking water TCC have a water treatment plant with excess capacity.
Serious discussions are going on regarding the sales of water in total area at a
reasonable rate. Also, they are discussing on the enhancement of the 175TPD
caustic soda production to 225TPD.

3.3.6.3 New projects in consideration
Development on a new rutile plant
Transportation through water







73


3.3.7 ENGINEERING DEPARTMENT
Fig. 3.3.7.1 Engineering Department Structure





















Asst. General
Manager
Engineering

Deputy General
Manager
Engineering

Ex. Tr

Senior
Engineer
Maintenance

Deputy Manager
Utilities & Statues

Deputy
Manager M &
P

Deputy
Manager Fire &
Safety

Deputy Engineer
Maintenance

Chief Engineer
Utilities &
Statues

Chief Engineer
Maintenance &
Planning

Chief Engineer
Fire & Safety

Chief Engineer
Maintenance

Ex. Tr

Senior Engineer-Automobile
Senior Engineer-Cylinder
Mntc. Senior Engineer-Work
Shop

Senior
Engineer M &
P

Senior
Engineer Fire
& Safety

Ex. Tr

General Manager
Technical

74

The department is headed by Manager (Engineering) and has four sections.
Utility and statutes
Mechanical Maintenance
Maintenance planning
Civil section

3.3.7.1UTILITY AND STATUTES
This is the services sector in TCC, which provides service to other departments.
Utility and statutes section have a well defined structure and more than 100
members under various department sections.

3.3.7.1.1Functions
Provide different utilities including statutory services
Provide operators and transporters for automobile works
Chlorine cylinder maintenance including regular maintenance, painting
and statutory testing
Welding, machinery painting and salt charging.
Statutory research of equipment and tools.
Maintain and run workshops for fabrications and machineries.
3.3.7.2 MECHANICAL MAINTENANCE SECTION
Mechanical section tends to be the backbone of TCC. This section and they
handle all types on manual maintenance look forward to maintain the machines
is the best possible manner and ensure healthy and sound flow of work within
the organization



75

3.3.7.2.1Objectives
To ensure all equipments engaged in production are good in condition
To reduce down time of critical equipment
To reduce cost due to inefficiently in handling the equipments.
3.3.7.2.2 Types of Maintenance
Break down Maintenance: machine checking is done on regular basis to
avoid break down
Preventive Maintenance: systemic check is done to avoid break down

3.3.7.3 MAINTENANCE PLANNING SECTION
ACE heads section. The mains objective on the section is to assist other
departments and sections namely, U&S, Civil Mechanical Maintenance,
Electrical, Instrumentation etc. In planning and implementing engineering
works. The section also provides assistance to project department in developing
new project

3.3.7.4 CIVIL SECTION
Civil engineer who is reporting to DGM (Deputy General Manager Technical)
heads this section. The main role of this section is the construction of building
and other premises of the company. It is also engaged with the social task to
ensure the smooth flow of industrial activities

3.3.7.4.1 Function
Maintenance of existing building
Painting, insulation and tender issue of civil work.
Roof maintenance work
76

Tender issue for civil works
Preparing MPR (Material Procurement Requirement) of steel sheets,
cement and other construction at materials except sand.


























77

3.3.8 ELECTRICAL AND INSTRUMENTATION DEPARTMENT

The department is headed by Manager (E&I) and has two sections, electrical
and instrumentation sections.

3.3.8.1 Electrical Section
Electricity is a raw material for TCC, since the manufacturing process involves
electrolysis. The major function of the Electrical Department is to condition the
electricity received to such a form that, it can be fed to the process. Electricity is
received by TCC from Kerala State Electricity Boards 220KV substation at
Kalamassery through two 110KV feeders. The substation to receive this supply
and step it down to 11KV level has got 50MVA capacities. The capacity
contracted by TCC is at present 20MVA, which is required at the present level
of production. The 11KV supply is distributed from an 11 KV panel in the
substation to various transformers, rectifiers and other equipments.
The rectifiers are equipments, which convert alternating current to direct current
at the voltage level required for the process. The rectifiers in plant 1 are 61 KV
capacities. In plant I and II there are four auxiliary transformers each. There is a
transformer in the water treatment plant located about 3 Km away from the
company. The functions of the department include operation and maintenance
of the substation, transformers and rectifier systems make arrangements to meet
the statutory requirements, periodical inspection etc, take part in the production
planning process, provide advice regarding the matters related electricity and
electrical equipments etc, to the top management and also documentation and
preparation of drawings etc.

3.3.8.2 Instrumentation Section
Process Instrumentation is a vital part of modern day manufacturing process. It
ensures reliable and accurate operation of the equipments and smooth control of
78

the process with minimum human intervention. The modern day processes are
all microprocessor controlled. It avoids the errors inevitably caused by the
humans.
The functions of the section includes preventive and breakdown maintenance of
the control equipments and systems, coordination with the external agencies
supplying software, hardware etc, provide advice to the top management in
related matters, etc.





















79





CHAPTER 4
SWOT ANALYSIS









80

4.1STRENGTH
TCC is a pioneer in the Chlor alkali market and has created reliability and
credibility among the customers. It is the only Chlor alkali unit in the
state which has more than 80% market share for its product in the state.
TCC acts as a mother industry which feeds other industries. Companys
products are basic chemicals and are considered to be the building blocks
of chemical industry.
It has a strategic location where there are no competitors around. The
company is located at the centre of the industrial belt where maximum
consumption of Chlor-alkali products takes place. Many of the main
customers of TCC are located near to it itself like HIL, FACT, etc.
TCC has a good strength of skilled work force, educated staff and
professionally qualified managers. It has excellent management labour
relation and hence there was no strike reported for the last few years.
TCC enjoys great benefits of its location where there are excellent
transporting facilities which has proximity to national highway, railway
line, sea port and airport.
It has abundance availability of water which is the main raw material of
TCC as it is located in the banks of the Periyar River.
Good record of production and financial performance in the past years.
TCC is pioneer of rayon grade caustic soda and the Company has created
creditability and reliability among its customers.

4.2 WEAKNESS


Company has large number of workforce which is more than what
actually is needed. So the employ cost is very high. Also the workers are
more relaxed and their works are also very limited, so a lazy nature is
developed within the employees.
81

TCC is a government owned company. So the political condition of the
state affects the management of the company. The major decisions of the
company has to get the approval from the government, which will delay
the decision making process.
Logistics are unfavorable as the raw materials are brought from distant
places. The main raw material, i.e., salt, is brought mainly from Tamil
Nadu and Gujarat. But after the tsunami, the amount of salt got from
Tamil Nadu has decreased considerably. So it has to be taken from
Gujarat, which increases the transportation cost.
Another raw material is electricity. Company needs a huge amount of
electricity for their production. Almost 60% of the manufacturing cost is
from electricity. So any fluctuations in the electricity charges will also
affect the company.
The unavailability of unskilled labourers is another problem which is
faced by the company. The company requires the availability of unskilled
labourers for their processes like maintenance of the company and other
civil processes. Also the available unskilled workforces are not ready to
work in such dangerous conditions.
The employees in the organization are given a permanent job security and
several other benefits. So many of the employees do not perform their
duties very effectively. The lack of profit motive leads to a poor
performance of the company.
Even though there are lesser strikes within the company, the strikes which
are external like the strikes of the lorry drivers etc. will also affect the
company very badly. If there is a lorry strike for few days the
transportation process has to be made to standstill.



82

4.3 OPPORTUNITIES

The company could reduce their cost, by implementing a renewable
energy source like solar panels, and hydro projects. This could enable
them to reduce the cost incurred for the electricity.
As the company is government owned they could get much financial
assistance and other expert guidance for the successful operations of the
firm.
The consumption of Chlor alkali products is low when compared to other
developed countries. The economic development of the country may
increase in a higher demand for the products.
TCC is the only Chlor alkali producing company in Kerala. Hence it has a
monopoly in the area.
The overall improvement in the trade and business in the economy result
in bringing more demand for the products of TCC.

4.4 THREATS

Industry is rather a matured one in the life cycle hence there is a low
prospect for the future growth and might be on a decline path if
substitutes are found out.
The infrastructure of the company is rather obsolete compared to others.
The company needs to spend a lot of money for maintenance process.
The company is also affected by the high competition from the foreign
companies in the market.
The import duty policy of central government is not fair and caused
periodic fluctuation in the price of companys product.
The hike in the price of the raw materials mainly the electricity is an
important threat for the company. As the whole process of the company is
83

based on electricity, so a small hike in the price of electricity hinders the
company in a very bad way.
The transportation cost is another problem which the company faces, the
raw materials needs to be transported from faraway place like Gujarat.
As the neighboring companies like HIL are incurring huge loss in their
production, they are cutting down their production. So the sales in TCC
are also getting reduced.






















84











CHAPTER 5

FINDINGS, SUGGESTIONS AND
CONCLUSIONS







85

5.1 FINDINGS
TCC is the only Chlor Alkali unit in Kerala which is owned by the
government.
The major customers of TCC are pharmaceuticals companies, soap
industries, insecticides and pesticides industries, paper industries and
rayon industries.
TCC has 80% of market share for its products in Kerala.
The major competitors are SPIC and Chemplast.
Other chemical companies like FACT, HIL, etc. get their raw materials
from TCC. So TCC acts as a feeding company.
Company follows management by convenience and not management by
objectives.
Pricing policy of TCC is an average, according to the industrial standards.
TCC have a flexible credit policy, they give credit facility up to 30-45
days and they are getting credit of 60 days from suppliers.
The customers have reported no rejection of TCC product, which shows
the product satisfaction.
In case of lead time, it was noted that order processing took too much
time due to lot of work.
The strength of TCC is the quality of their products, services and the
delivery.
No strikes have been reported for the last 10 years, it shows the
relationship of workers and management as better.
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The company is depending heavily on electricity and around 60% of their
product price is for this.
New technology of Membrane cell has the advantage of pollution free
environment and also it brings about 30% reductions in electric power
requirements.
No major environment pollution has been reported for the past 50 years
of operations.

5.2 SUGGESTIONS


In order to increase the production the company may try giving some
motivation to the employees.
The company shall take necessary actions to maintain the ratios at the
standard level.
Improve the first aid facilities by providing free medicines and
treatments.
TCC should try necessary steps to increase the net profits.
TCC should persuade workers to use safety equipments more effectively
The company should conduct market research to understand the
movement of the products in the market and to identify the potential and
new customers
The organizational hierarchy must be checked to avoid organizational
blocks.
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The company could use non renewable energy sources like solar panels
which would reduce the electricity charges, which is one of the main
charges which is incurred in production.

5.3 CONCLUSION

Travancore Cochin Chemicals Ltd, Udyogamandal is a state owned undertaking
engaged in manufacture of basic chemicals like caustic soda, HCL, Chlorine,
Sodium Hypochlorite, etc. TCC was established in 1950, with a nominal
production of 20 TPD. TCCs products have national reputation for quality and
the company gives high priority to customer satisfaction.
TCC have marked changes in the technology of process and also stresses
importance in productivity, employees morality, quality and clean
environment.
The study has accomplished several goals. The study has helped to familiarize
with working condition of the organization. It has helped to study the
coordination among various departments. The study has given a general idea
about the functioning of TCC. It helped to analyze and understand the
administrative functions.
Till 1995- 1996, company had recorded a steady growth in production as well as
in sales. After that period even through the sales remains on an average, the
company could not make any profits. This was due to the implementation of
membrane cell technology in place of 68 mercury cell technology. The higher
electric charges compared with other states also affected the profits of the
company.
As per the study conducted, it has been observed that the capacity of production
has increased and the company is recovering from the fall in profits.
Since an organization is a human grouping in which work is done for the
accomplishment of some specific goals or mission, this organization is trying to
remain on top position by utilizing and maintaining its resources to maximum.
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Proper management is a challenging job, and here in this organization proper
administration and social system are prevailing and it accounts for the strength
of the organization on order to attain its objectives.


























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BIBLIOGRAPHY




















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BOOKS
C.R. Kothari -Research Methodology, New age International Publishers
Philip Kotler - Marketing Management, Prentice Hall of India, Pvt. Ltd.

JOURNALS
Annual Report of Travancore Cochin Chemicals LTD.

WEBSITES
WWW.TCCKERALA.COM
WWW.BUSINESSLINE.IN
WWW.MONEYCONTROL.COM