INTRODUCTION

The chemical industry comprises of the companies that produce industrial chemicals. It is central to the modern world economy, converting raw materials such as oil, natural gas, air, water, metal and minerals into more than70000 different products. Chemicals are used to make a wide variety of consumer goods, as well as thousands of inputs to agriculture, manufacturing, construction and service industries. The chemical industry itself consumes 26% of its own outputs. Major industrial consumers include rubber and plastic products, textiles, apparel, petroleum refining, pulp and paper and primary metals. The chemical industry has shown rapid growth for more than 50 years. As accepted by chemical engineers, the chemical industry involves the use of chemical processes such as chemical reactions and refining methods to produce a wide variety of solid, liquid and gaseous materials. Salt is one of the oldest and most popular condiments. What is relatively unknown, however 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 faces a threat from the imported products. The Chlor-alkali industry in India is around 60 years old. It began with a modest capacity of a few thousand of tones per annum and has since grown into a 2.24 million ton per annum capacity industry. In the process of manufacturing Chlor-alkali, some bye products are assured. For each ton of caustic soda, 860 kg of chlorine and 25 kg of hydrogen will be produced. Some amount of chlorine produced is combined with hydrogen to make hydrochloric acid. Caustic soda, Hydrochloric acid, Chlorine is basic chemicals and are used by almost all industries

OBJECTIVES OF THE STUDY To understand the organization structure and the various functional departments. To have an exposure of the work environment. To understand the extent to which the theory matches with the actual practices seen in the organization. To make an analysis of the organizations performance. To study the relevance of TCC in the chemical industry field in India. To get clear idea about the products.

LIMITATIONS OF THE STUDY To understand the organization and study its various functions and ups and downs a period of 30 days is not enough.

Direct contacts with departments are not allowed. Access too many of the important documents or the key areas was not allowed. As there were many three shifts seeing the workers together for a public interview or an opinion session was not possible

SCOPE OF THE STUDY A study of various department and its functions help to gain awareness about organization atmosphere. Through this study our attempt is to ascertain where the organization stands with respect to the society and to see whether it has been able to attain overall mission

SOURCES OF DATA COLLECTION

BOTH PRIMARY AND SECONDARY METHODS PRIMARY METHOD This is the method by which we collect data directly from the organization. This may be of 2 types, Observation method and interview method. In observation method we observe the work done in the organization and collect data from that, while in interview method it is the verbal conversation with the workers in the organization and collecting data directly from them. From this we get different views and ideas of different people. The data collected will be very accurate SECONDARY METHOD This is a method by which we collect data that is already being collected by someone else. And which have already being through statistical methods. This study also used secondary data from websites, magazines etc. This type of data may not be so accurate because it is not collected by us directly. So collecting data through secondary method should be very careful. But this is much easier method than primary data collection. Secondary data collected from, Website Company records Annual records Journals

INDUSTRY PROFILE

CHEMICAL INDUSTRY The chemical industry comprises the companies that produce industrial chemicals. It is central to modern world economy, converting raw materials (oil, natural gas, air, water, metals, and minerals) into more than 70,000 different products. Polymers and plastics, especially polyethylene, polypropylene, polyvinyl chloride, polyethylene terephthalate, polystyrene and polycarbonate comprise about 80% of the industrys output worldwide. Chemicals are used to make a wide variety of consumer goods, as well as thousands inputs to agriculture, manufacturing, construction, and service industries. The chemical industry itself consumes 26 percent of its own output. Major industrial customers include rubber and plastic products, textiles, apparel, petroleum refining, pulp and paper, and primary metals. Chemicals are nearly a $2trillion global enterprise, and the EU and U.S. chemical companies are the world's largest producers. The largest corporate producers worldwide, with plants in numerous countries, are BASF, Dow, Shell, Bayer, INEOS, Exxon Mobil, DuPont, and Mitsubishi, along with thousands of smaller firms. In the U.S. there are 170 major chemical companies. They operate internationally with more than 2,800 facilities outside the U.S. and 1,700 foreign subsidiaries or affiliates operating. The U.S. chemical output is $400 billion a year. The U.S. industry records large trade surpluses and employs more than a million people in the United States alone. The chemical industry is also the second largest consumer of energy in manufacturing and spends over $5 billion annually on pollution abatement. In Europe, especially Germany, the chemical, plastics and rubber sectors are among the largest industrial sectors. Together they generate about 3.2 million jobs in more than 60,000 companies. Since 2000 the chemical sector alone has represented 2/3of the entire manufacturing trade surplus of the EU. The chemical sector accounts for12% of the EU manufacturing industry's added value.

The chemical industry has shown rapid growth for more than fifty years. The fastest growing areas have been in the manufacture of synthetic organic polymers used as plastics, fibers and elastomers. Historically and presently the chemical industry has been concentrated in three areas of the world, Western Europe, North America and Japan (the Triad). The European Community remains the largest producer area followed by the USA and Japan. The traditional dominance of chemical production by the Triad countries is being challenged by changes in feedstock availability and price, labor cost, energy cost, differential rates of economic growth and environmental pressures. Instrumental in the changing structure of the global chemical industry has been the growth in China, India ,Korea, the Middle East, South East Asia, Nigeria, Trinidad, Thailand, Brazil, Venezuela, and Indonesia.

INTRODUCTION TO THE COMPANY

The TCC Ltd is a state public sector undertaking owed by the Government of Kerala, situated at Udyogamandal in Cochin, the industrial belt in the state. The factory and registered office is located 20 km away from the Cochin international airport and 15 km from Eranakulam railway station. TCC is located in the banks of river Periyar, one of the finest water ways in Kerala and is recognized as an artery of costal trade and commerce. TCC is heavy chemical industry engaged in the manufacture and marketing of caustic soda and allied chemicals Company governing body Chairman Managing director Director finance Company secretary : K. Srinivas, I.A.S :V. Muralidharan Nair : Jiju Francis : Smt. Susan Abraham

History of the company In 1950, FACT started their ammonia plant. They wanted to produce ammonium chlorite which is fertilizer, using ammonia from their newly installed ammonia plant. For that they required HCI gas. FACT that time was purely a fertilizer unit and HCI gas was a Chloralkali industrial product, so they wanted to install a separate Chlor-alkali unit for supply of HCI gas to FACT. In 1950 a joint venture was registered by FACT and their technology supplier Mettur Chemicals and Industrial corporations, under the name Travancore Mettur Chemicals. As the period was post world war second, TMC could not raise sufficient funds. As the plant equipment ordered arriving at Cochin airport TMC could not take delivery by the payment. By that time knowing that a Chlor-alkali industry is being installed at Udyogamandal two other companies. HIL and IRE started setting up their plants at Udyogamandal with the idea of using Chlor-alkali products for their production process. TMC represented them Travancore Cochin state government regarding their financial problem. The government came to know that with the closing down of TMC, the two other
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companies at a major plant of FACT have to be shut down. So the Travancore Cochin government gave massive financial assistance to TMC and with that company renamed as TCC (Travancore Cochin Chemicals).Commercial production in 1954 with 20 tons per day production capacity. The production process employed was electro sis and the technology used was mercury cell technology. TCC has been the pioneer producer of the caustic soda in the country. The production capacity was gradually raised to 160 TDP in 1975. In 1997 TCC started a 100 TDP caustic soda plant employing membrane cell technology which is energy sufficient and environment friendly technology. The plant was supplied by Asahi Gas Company Japan. In 2002 the capacity of AGC plant was increased to 125 TDP. In 2005 and 2006 a 25 TDP caustic soda plant each employing membrane cell technology were installed. The plant was supplied by UHDE Germany. In 2004, TCC stopped operation of its last mercury cell plant. At present TCC has 175 TDP caustic soda productions capacity employing the latest membrane cell technology.

Initial investment received by the company INVESTORS Government of Kerala FACT KSIDC Sanmarproperties and investments Total RS. IN CRORRES 11.90 8.11 6.50 3.50 30.01

Company Governing Body

Quality policy of TCC They are committed to enhance customer satisfaction by providing goods and services complying with continually improving quality management system. Health and safety policy TCC is committed to provide every one of its employees and related public an accident free and health environment in its effort to manufacture high quality product at competitive price. The company will comply with all statutory requirements in its regards. The company will provide a work environment in which identified hazards are controlled, if elimination is not feasible and will provide personal protective equipment wherever necessary.

Present situation
TCC is the only Chlor-alkali unit in Kerala. In India there are about 40 Chlor-alkali units as competitors. TCC owes 109 acres of land around 776 people are working in TCC in three shifts. The plants are functioning utilizing full capacity.

PRODUCT PROFILE
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The main products produced by TCC are: Product Caustic soda lye Liquid chlorine Hydrochloric acid Caustic soda flakes Sodium hypochlorite Capacity of production/day 175 tones 72 tones 387 tones 100 tones 45 tones

The main raw materials for producing these products are, salt electricity and water. The company requires 3700 units of electricity and 1.72 tone of salt for caustic soda production. Common salt is mainly procured from Gujarat and Tamil Nadu.

Caustic soda Caustic soda is a basic alkali. It came in to 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 2 types of caustic soda lye of concentration 30-33% and 48%. Quantity produced per annum: 57750 tones Its uses A chemical for dissolving out extraneous matter from wood for preparing pure cellulose, for the preparation of alkali cellulose and for the production of viscose solution As a saponification agent in bleaching, dyeing and mercerizing For processing of monazite and refining of bauxite
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A purification agent and absorbent for acidic gases A cleaning agent For refining petroleum fractions Reagent for production of various organic chemicals

Chlorine Chlorine a co product obtained in the process of manufacture of caustic is a chemical used for the manufacture of plastics, various organic and inorganic chemicals, petrochemicals, textiles paper, insecticides and pharmaceuticals. It is the traditional water purification agent. Chlorine and its components in pharmaceuticals industry has served billions if life since its discovery and use. Quantity produced per year: 23760 tones Its uses

Producing insecticides like DDT, BHC etc. and pesticides like Aldrine In purifying drinking water and sterilizing sewage effluents For manufacturing PVC and allied co polymers For producing chloramines and its organic derivatives For upgrading titanium content in Ilmenite

Hydrochloric acid The company also produces high purity HCL, which is used for ossien, fertilizers, etc. HCL finds its application in number of chemical industry such as mineral processing, gelatin, food industry, water treatment, and etc. It also serves the industries like engineering, starch and plastics. It is a yellowish green color liquid.

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Quantity produced per year: 127742 Its uses For the production of ammonium chloride and in the manufacture of phosphoric acid In monazite processing for the separation of rare earths as chlorides from thorium A cleaning agent in Galvanizing For the manufacture of PVC For hydrolyzing starch into sugar

Sodium hypochlorite Sodium hypochlorite is known as Soda Bleach finds its application in bleaching and disinfectant and also in the extraction of rare earth chemicals. It is a pale yellowish green color liquid. Soda bleach is the only branded product that is produced by the company, the brand name is Eco cleans. Quantity produced per year: 15000 tones Its uses As a bleaching agent As germicide an cleaning agent For sterilization

Caustic soda flakes Caustic soda lye is fused to produce caustic soda flakes. There is continues caustic fusion plant that produce caustic soda flakes. It is a white deliquescent solid in flakes form. Caustic soda flakes have concentration 98% to 99% NaOH.

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PRODUCTION AND OPERATIONAL DEPARTMENT

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Operational department is the most important department of TCC. This department carries out the manufacturing of all products. The company carries out continues production system; hence this department plays a very crucial role in TCC. OBJECTIVES OF OPERATIONS DEPARTMENT: Reduce non confirming products Maximize the availability of electrolyze operation. Optimizing the consumption of electricity, on furnace and purification of chemicals. Maximize the production confirming to production specification.

DUTIES AND RESPONSIBILITIES OF OPERATION MANAGER: Head of the operations department Fixes monthly target of the product based on the market requirement Responsible for modification in the production process and responsible for the affluent discharges Operations manager has the administrative control over the operations department Operation manager is the designated emergency controller during any hazardous incident i.e. leakage or emission of any toxic gas or liquid. DUTIES AND RESPONSIBILITIES OF PLANT MANAGER: Custodian of plant Plant manager will plan production activities to meet the production of target set by the operations manager. Plant manager has the administration control of personnel working in the plant Plant manager coordinate with other managers for smooth functioning of the plant
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Plant manager is responsible for the material consumption Plant manager will plan the shutdown activities and carryout maintenance work of plants.

MAIN PRODUCTS PRODUCED AND CAPACITY OF PRODUCTION

PRODUCTS CAUSTIC SODA ( NaOH) LYE CAUSTIC SODA ( NaOH) FLAKES LIQUED CHLORINE HYDROCHLORIC ACID (HCI) SODA BLEACH

CAPACITY OF PRODUCTION 125 TONES PER DAY 100 TONES PER DAY 72 TONES PER DAY 387 TONES PER DAY 45 TONES PER DAY

RAW MATERIALS USED FOR PRODUCTION 1. Common salt 2. Electricity 3. Water TECHNOLOGY USED: Membrane cell technology PROCESS FOLLOWED: Electrolysis PRODUCTION PROCESS Production process has some stages,those are:

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Brine preparation and primary purification. Secondary brine purification. Electrolysis. Lean brine DE chlorination. Chlorine treatment. HCI synthesis. Caustic fusion. Soda bleaches preparation.

Brine preparation and primary purification Sodium chloride or salt is fed in to the saturator using bucket elevators, where it got mixed with water. This solution water required concentration goes to precipitation tank where chemicals like Barium carbonate, sodium carbonate and caustic soda are added to remove sulphates, calcium and magnesium impurities. The solution then goes to the clarifier where the precipitators are allowed to settle. The clarified brine is passed through Anthracite filters. In the filtered brine solution chlorine content is completely removed by adding bisulphate. Caustic soda is also added to make the pH in between 8.5-9.5. Brine is to be admitted to the secondary purification system only after the desired purity level is attained. Secondary Brine Purification The secondary brine purification consists of four ion exchange filters. The primary purified brine is passed through the ion exchange filters where it undergoes on exchange process. Ion exchange materials are insoluble acid and bases, which converted to salt remains insoluble. The most popular ion exchange materials are synthetic organic polymers. These ion exchange materials are used in columns in which the solution containing ionic
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impurities like calcium and magnesium comes in contact with the resin usually through downward flow through the resin bed. The saturated resin then regenerated to its original state by using acid and alkali solution. The regenerated resin is then reused. The purity of the feed brine in the membrane cell process affects the performance and life of the membrane. Electrolysis The secondary purified brine is fed to the brine head tank after cooling and is admitted to electrolysis. Demineralized water is also admitted to the electrolysis. Direct current supply is connected to the anode and cathode and the current is applied to the electrolyser. During the electrolysis, caustic soda is produced at cathode, which is of 32% concentration. Hydrogen gas is also formed at the cathode chamber. Chlorine formed at anode is pumped into storage tank, hydrogen and chlorine gas goes to their respective treatment section. Lean brine de chlorination Lean brine and chlorine from the electrolyser get separated in the gas separator. Dissolved chlorine in the lean brine is separated in presence of excess hydrochloric acid. The separated chlorine gas is further processed for liquefaction and hydrochloric acid synthesis. Chlorine treatment Chlorine treatment involves cooling, washing, filtration, drying, compression, storage and filling. The chlorine from the anode chamber of the electrolyser is first cooled to 30* C with the cooling tower water. A final trace of salt is removed by using a wet chlorine filter; it is then again cooled to 1* C. After this the chlorine is separated for the HCI synthesis and liquefying. The chlorine is compressed using acid ring compressor, the compressed chlorine passes to a liquefier where it is cooled using a refrigeration system in which Freon gas is used as refrigerant. The chlorine turned in to liquid form and is stored in liquid chlorine storage tanks. The filling of chlorine in to cylinders of capacities one ton, 100kg, etc. is done at liquid chlorine filling station, using dry compressed air. Chlorine for HCI synthesis is fed by using chlorine blowers. Before this the chlorine is cooled. It is then fed in to ovens along with hydrogen for the synthesis of HCI acid.
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HCI synthesis Hydrogen gas from the electrolyzed is washed with water in a washing chamber, cooled to about 30* C with a heat exchanger, and admitted directly to hydrogen holder, after separating the condensate. The hydrogen gas is used for the HCI synthesis and also a part as a fuel in the CCF plant operation. Hydrogen for HCI fed to an oven using hydrogen blowers. Here it is burned in the presence of chlorine. The resulting HCI gas is absorbed in water flowing down the oven. The hydrogen holder has a pressure vending mechanism whereby excess hydrogen is allowed to escape the atmosphere. Caustic fusion Caustic fusion is done in Continues Caustic Fusion plant. CCF plant is mainly for concentrating 32% Na OH lye to 50% and 98%-99% flakes. The 32% NaOH lay is stored in the main storage tank, a part of which goes for sale. The remaining part of 32% is passed through 3 evaporators (EV1, EV2, and EV3). In the first evaporator the NaOH is heated using power generated in EV2 and EV3. The steam from EV1 is passed through EV2 and is evaporated using vacuum at 70-80* C. Then it is passed through a shell of high heat exchange and the outcome will be 50% NaOH lye. A portion of 50% NaOH goes for sale. The remain portion of NaOH is passed through EV3 and heated using a mixture with contains 53% potassium nitrate, 40% sodium nitrate, and 7% sodium nitrate ad finally we get 98%-99% NaOH flakes. Soda bleach preparation Soda bleach plant is developed for the utilization of excess and waste chlorine. Chlorine cannot be disposed as a waste gas. So it has to be absorbed and stored somewhere. Even though the soda bleach is considered as a side product but the main objective is waste disposal. A part of 32% NaOH lye and chlorine is used to preparation of soda bleach. The excess chlorine at the time of plants shutdown also goes for soda bleach preparation. 32% NaOH is diluted using demineralized water. The solution is passed through three circulation towers where it is heated with chlorine to soda bleach.

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MARKETING DEPARTMENT

Marketing department in TCC is product centered with separate personnel entrusted to each product. TCC is the only Chlor-alkali company in Kerala. monopolistic market in Kerala. So firm has more or less TCC gave primary important towards satisfaction of

customers. Type of market is buyer market. Marketing department consists of an officer section and an issue section. All documentation work comes under office section. All works relating to sales comes under issue section. TCC will adopt marketing strategy according to product nature, market situation, demand of product etc. TCC gained about 80%of market in state. DUTIES AND RESPONSIBILITIES OF MARKETING MANAGER Marketing manager is directly responsible for sales and distribution of products Marketing manager is responsible for maintaining customer satisfaction. Marketing manager is responsible for implementing product policy. Marketing manager is responsible for organizing and coordinating various aspects of marketing including sales forecasting, advertising, sales promotion and transport. Marketing manager has a crucial role in price fixation.

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Marketing manager has responsibilities regarding after sales service and complaint handling.

NATURE OF MARKET TCC is the only Chlor-alkali unit in Kerala. So the firm has more or less monopolistic market in Kerala. However the national scenario is different. There are about 40 units as competitors. TCC considers customer satisfaction as the focal factor. TCC aims to build stable sales in market thereby building a sense of credibility among the buyers.

MARKETING DEPARTMENT Marketing department in TCC is divided in to two sections: The supply section The documentation section

Functions of supply section Preparation of schedule of dispatch and the actual dispatch Execution of sales offers. Maintain daily stock registers. Informing parties about the dispatch effected. Performing after sales services. Maintaining stability in sales so as to boost credibility with the buyers.

FUNCTIONS OF DOCUMENTATION SECTION

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Preparation of sales tender, letters and amendments, maintenance of sales offer, register book and other necessary information.

Keeping records of the buyers. Keeping proper documentation for the buyer complaint and the after sales service provided.

Preparation of sales budget, sales plans and monthly allotment, correspondence with parties.

SALES FORCES OF TCC LTD. The managerial staff of marketing department of TCC includes Manager, marketing and deputy manager marketing. There are 15 employees in the department as sales personnel under the Deputy manager marketing.it is these persons take care of the after sales service.

THE MARKETING MIX The major markets are in Kerala, Tamil Nadu and certain other portion of Karnataka. Except for caustic soda flakes, all other products are mostly sold in South India. There is a demand for caustic soda flakes from Mumbai. PRODUCT TCC manufactures industrial products mainly; caustic soda lye, caustic soda flakes, liquefied chlorine, commercial hydrochloric acid and soda bleach. The industries served through these products are soap, paper, insecticides, pharmaceuticals, starch, chemicals, minerals, textiles, rubber, water purification, drugs, petroleum, etc. The only branded product is soda bleach in the name of ECO CLEAN. TCC is planning to introduce a new product sodium chlorite in the market, with collaboration with ISRO.
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PRICE The company has adopted a differential pricing policy. An open body namely, AMAI (Alkali Manufacturers Association of India) fixes the ceiling price for a particular period. Generally this price is fixed by adding up the basic price + sales tax + excise duty + transport + freight charges + a small percentage of profit. Price concessions are given to some customers for bulk purchase. Price concessions are also given to long distance customers, taking into consideration of their freight element.

PRODUCTS AND ITS BASIC PRICES

PRODUCTS CAUSTIC SODA CAUSTIC SODA FLAKES LIQUED CHLORINE HYDROCHLORIC ACID SODIUM HYPOCHLORITE

PRICE RS. 20000/ TONE RS. 23000/ TONE RS.10000/ TONE RS.3500/ TONE RS.4000/ TONE

PLACE Channels include direct selling to customers. For caustic soda there are agencies outside Kerala for marketing. There are two dealers in Tamil Nadu. The entire functions are done from the company office at Udyogamandal and there is no marketing office outside the company. The dispatch takes place within the company premises.
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PROMOTION All the products of the company are industrial products. Since TCC is the only producer of above mentioned product in the state, there is no real competition in the local market. The customers are aware of the existence of the company. The actual marketing factor of the product is the price offered by the company. The customer accepts the offer only if the price offered by our company is lowest among the bid made. TCC generally does not give importance to advertise their product. However the company advertises in the trade journals like chemical magazine once in a while. The promotional activities included regular press releases, creation of documentary and other promotional activities are generally done through website www.tcckerala.com.

Market Analysis:
During the year 2005-2006, the company could achieve are cord turnover of Rs.1.26crores (including excise duty). This was due to higher production, increased demand and better sales realization. There was recession in the realization towards the end of the financial year, but it was not reflected on Travancore Chemicals Cochin Ltd, as the contracts were made earlier. The indications are that the market will improve during the first quarter of the next financial year.

Marketing strategy of TCC Organization has adopted a strategy for their product nature, market situation, demand of the product, competition etc. In Kerala, TCC is facing an oligopoly. TCC gained about 80% of total market share.

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PERSONNEL DEPARTMENT

Functions of personnel department Recruitment through professional and executive employment exchanges and public service commission.

Manpower planning Ascertaining the number of vacancies Welfare functions Including statutory and non- statutory welfare measures. Grievance handing as per the provisions of Industrial Disputes Act and as per Factories Act.

Maintaining Company Discipline As per Standing Order Act. Industry Relations. Public Relations.
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Job Description (Techniques) Job Specification (Techniques) Job Analysis (Techniques) Performance Appraisal Training. Staffing. Formulates and implements personnel policies Disciplinary action Wages and Salary Administration Administration Filing various returns relating to employees. Medical reimbursement schemes.

MAN POWER OF TCC CATOGERY Managerial staff Administrative staff Workers Total NUMBER 83 149 544 776

MAN POWER PLANNING

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An important function of the personnel manager is that of manpower planning. A list of retiring employees is prepared 3-4 year in advance and a call for recruitment is made. The list of call for recruitment has to be approved by the MD. The company will inform the vacancies to the Public Service Commission (P S C) around five year in advance. Any need for immediate recruitment is made known to the P S C. RECRUTMENT AND SELECTION Man power requirement are identified and the required persons are selected by personnel department. Sources of recruitment: Internal sources- done by promotion. Kerala Public Service Commission for the office side and administration side workers. Technical and district employment exchange. Direct recruitment by advertising.

After the job analysis and job description the selection process undergone is as follows: Invitation of application Scrutiny Written test Interview.

PROMOTION POLICY Promotion policy is divided in to two, managerial promotion policy and non- managerial promotion policy.

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MANEGERIAL PROMOTION POLICY Here a stipulated length of serve in the immediate lower grade is the main criteria of promotion. Promotion from work category to office cadre shall be ordered only with Board Resolution and Permission of Govt. Time bound grade promotions are considered in the case of the lowest two managerial scales. Period of 10 year service can be considered for promotion.

NON-MANEGERIAL PROMOTION Vacancies other than to be filled by the recruitment through PSC will be filled as per the policy and procedure lay down through the terms of settlement. If a prospective has the minimum qualification and stipulated service, then a minimum score of 60 point is to be going from evaluation of attendance, service record and quality of work. If hands are not available for promotion in the respective section, it is notified on the company notice board. Candidate with the same grade and stipulated length of service considered can apply. If the candidates are not found available after test, a low grade hand with stipulated service can be given double promotion.

WAGE AND SALARY ADMINISTRATION In TCC personal manger has a role of advisory nature. Actually the settlement of wages and salary done by the Accounts department. The trade union / management will decide how much to pay for each employee and worker regarding his or her work and performance. INDUSTRIAL RELATIONS TCC maintains a very healthy relation with the employee trade union. Recognized trade unions in TCC are:

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TCC employers association TCC employers union ( affiliated to INTUC)

Unrecognized trade unions are: Thozhilali union. TCC staff and workers association ( affiliated to AITUC) BMS

WELLFARE PROGRAMES Labor welfare measures in India can be classified as statutory and non-statutory. Statutory welfare comprises those provisions, which are being on employees by law. These relate to certain essential working conditions and standards of health. Statutory welfare measures provided by TCC are accident benefits, annual bonus, drinking water, occupational health centers, lighting, rest rooms, sitting facilities, toilets and bath rooms, educational facilities etc. The non-statutory welfare provided voluntarily by employees is housing facility, medical attendance scheme, group accident policy, production bonus, and VRS.

Leaves 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)

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Holidays Paid Holidays 13 days (including four compulsory holiday)

Bata (Perquisites or Amenities) The Bata rates for outside duty at Ellor and for workmen deputed for duty in TCC Colony/water treatment plant will be as follows: If workmen attend duty for four hours or more in a shift he will be paid Bata as follows: In 8 - 4 shift or 4 12 shifts Rs.8 In shift 12 8 shift Rs. 12 SHIFTS 8-4 SHIFT 4-12 SHIFT 12-8 SHIFT ALLOWANCE RS.8 PER DAY RS.8 PER DAY RS.12 PER DAY

Gratuity Gratuity is paid as per the Gratuity Act

Bonus Production 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.

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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. If attended normal duty for a minimum period of 24 days in a payroll month 2 days wage extra If attended normal duty for a minimum period of 22/23days in a payroll month 11/2 days wage extra. If attended normal duty for a minimum period of 20/21days in a payroll month 1 days wage extra Grievance Redresal Grievance redressal committee is Statutory. It is to be legally maintained. Trade Unions are satisfied with the present conditions. Hence in TCC Grievance redressal Committee is not there, as here exist a good employee - employer relationship. Grievance redressal Committee consists of an experienced and efficient team of personnel department.

Workers Participation in Management TCC encourages its workers to take part in the management of the company. The workers are often consulted through their union while implementing major welfare programs of the company. In addition to this the workers are also included in some of the committee for taking management decision, which includes a) Canteen management committees. b) Safety committees c) Shop floor committees. d) Grievance committees.
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e) Provident fund trust f) Tri party committee g) Complaint committee relating to sexual harassment against women.

HUMAN RESOURCE DEVELOPMENT SECTION Human resources considered as the most vital asset of an organization. TCC has a welldefined employee power. It helps the organization to perform well in the market. Manager who organizes the training programs for workers and managerial staff, heads HRD departments. The manager is responsible only for training and development. The manager of the HRD does not come under personnel department. He reports directly to the DGMT. Functions of the training department a) Identifying training needs b) Imparting the required training c) Maintaining training records.

Scope or training department The procedure covers all aspects 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 the various departments and disciplines. Formulating training program on yearly basis The committee proposes a training calendar every year.

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Training needs for the years are identified and recorded by the department head. The details are handed over to the training department by respective department head. Training department does compilation of identified training need of the employees. Necessary training programs are arranged by training department to cater the identified training needs of the employees. Training department organizes training programs using internal faculty or engaging faculty from reputed organization. The training department in consultation with concerned department heads organizes in house training programs on special requirement. When employees attend training programs conducted in house, a feedback about the usefulness of the training is obtained and consolidated. The concerned department heads evaluates the feedback from the participants after a period of 2-3 months to ascertain the effectiveness of the training programs. Employees are also sent for training to other reputed institutions nominations for sending employees for training in such institutions outside the company are put up for approval of the appropriate authority as per the guidelines issued by the company from time to time. The employees attending outside programs submits a feedback on the trainee undergone the training department. The achievement against annual training calendar is reviewed half yearly by department helps for the number of programs held, number of employees participated for each programs, the highlights of training effectiveness feedback etc. The training department maintains a register on the training program attended by the employees. Training department maintains the format received from participants after getting it evaluated by the concern department head regarding the effectiveness of training. The managerial personnel of the company are imparted training to improve their managerial capabilities at the HRD center of the company and outside institutes depending upon the needs identified by the head of the department.

FINANCE DEPARTMENT

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Finance is considered as the vital part of any business organization. It is the function which controls the procurement and allocation of funds in the business operations. In TCC a welldeveloped and effective finance department is functioning. Financial controller is the Head of the Finance Department.

The main functions of the finance department are: 1. Generation of funds and Utilization of funds 2. Treasury Operation 3. Financial book keeping and finalization of accounts 4. Cost Recording 5 Sales Accounting 6 Bill Passing 7. Budgeting and Financial Control 8. Preparation of Wage Bills 9. Preparation of Invoice

Significant Accounting Policies 1. All revenues, costs, assets and liabilities are on the accrual basis, except customs duty claims and insurance claims 2. Sales exclude excise duty and sales tax. 3. Inventories valuation a. Stock-in- Trade: Caustic Soda lye and flakes are valued at works cost or net realizable value, whichever is lower. Byproducts are valued at net sales realization during the year.
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b. Raw materials, Mercury, packaging materials, fuel oil, stores and spares are valued at weighted average cost c. Tools and equipment are shown at revalued cost 4. All fixed assets are carried at cost less depreciation. Interest on loan during the period is added to the cost of fixed assets. 5. Depreciation a) For plant and machinery depreciation is calculate on a straight line basis specified in schedule XIV to the companys act, except for the membrane, whose life is only 4 years. b) For buildings, service equipment, furniture, fixtures, office equipment, electrical installation etc., depreciation is calculated on a Written down value basis at the rates specified in the Act. 6. In foreign exchange transactions all assets and liabilities are translated at the relevant exchange rates at the end of the financial year.

Sources of fund For efficient production and sales there must be adequate finance to meet the day to day expenditure of the enterprise. Company raises the funds by mean of equity fund and borrowed fund. The share capital includes authorized, issued, subscribed and paid up capital. Subsidy has been received from Government of Kerala. Loans are obtained as term loans from IDBI and material loans from Government of Kerala.

Sources of finance The main source of finance is SBT, Udyogmandal and Alva branch. The limit of cash credit allowed by bank is Rs.5 core with OD facility. The security provided by company is hypothecation of all finished goods and movable items.

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INVESTMENT Government of Kerala FACT KSIDC Vinyl investment Total

RS. IN CRORES 11.90 8.11 6.50 3.50 30.01

Types of audit Internal audit by internal audit department headed by company secretary. Audit conducted by an external body like Charted Accountant Firm. Statutory audit Auditor Generals audit Sales tax audit Income tax audit Cost audit Provident fund audit

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Different sections in finance department General Accounts section Bills section Costing section Establishment and Provident fund Account section

Marketing account section

General Account section This section deals with: General journal in which the transactions are entered first. Standard journal. Cash book in which all cash receipts and payments are recorded Ledger, which included general ledger and expense ledger.

Sundry creditors and sundry debtors ledger.

Bank book in which all bank payments and receipts are entered. Subsidy ledger, which include individual accounts maintained by each department.

Trial balance is prepared every 4 months, i.e. in June, September, December and March every year. Balance sheet is prepared in March. Bills section In this section all payment for purchase are recorded. This includes bills payable to suppliers and contractors. In case suppliers demand advance, it is paid and properly accounted. Sundry creditors ledger and suppliers accounts are kept in this section. At the end of the year, the
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accounts are ratified and send to general account section. In this section, separate cost record are kept and maintained and cost audit is conducted every year both internally as well as by government nominees. Types of bills Invoice of suppliers Bills of different department Petty work bills

Costing section Budgeting and budgetary control is the main functions of costing section where both revenue and capital expenditure budget are prepared. Capital expenditure budget is prepared based on the total cost incurred for all the items in all departments. Revenue budget is prepared on the basis of estimates foe production, sales and expenditure. The balance sheet with total assets and liabilities shown is prepared and total cash flow is found. Other objective of costing section includes:

Assessing monthly performance Preparation of variance analysis statement Preparing and issuing report for Alkalis Manufacturing Association Presenting monthly information about the performance of the company to the Government

Preparing monthly consumption statement of raw materials Keeping and maintaining asset register and cost ledger and reimbursement bill for medical expenses of the employees

Establishment and provident fund account section

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This section has two main functions: Time keeping of the factory workers, .i.e. attendance Payment of remuneration

For the time keeping, a punching system is developed, which will details regarding in and out movement of workers. Payment remuneration is made strictly on the basis of attendance, overtime, eligibility, allowance, etc. There is a separate sub section for keeping and providing fund accounts. Total provident fund include the compulsory provident fund and voluntary provident fund.

Marketing accounts section In this section dispatch of materials, invoicing and accounting work for sales, over dues collection, debt collection, debt reconciliation, etc. is carried out. It also deals with enquiry as to why payments are not made and if found out to be in bad, writing off of these. There are usually two types of data: Sales report Invoices

Functions Communicate the details of discrepancies sent by the customer to the marketing manager.

Taking dues list and follow ups to collect the same Facilitates fully computerized details to avoid re-entry Covering letter of sales tax and being sent to commercial sales tax department. (the company collects sales tax from parties and remits the same to government

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department. The amount received from first to last of every monthare remitted to this department on the 10th of next month.) Marketing account is also concerned with collections

Credit policy For firm which purchase above 200 tones in a section are given 30-60 days of credit. For 510 tones ready payment is made. The marketing manager and finance controller decides the companies for which the credit should give and how much credit is given and the MD is the final decision maker. The marketing manager decides the price and the finance controller decides the period and amount of credit.

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Profit and loss account on 31st march 2010 Rs. In lakhs

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INCOME Sales Less: exercise duty Net sales Trading sales Other income Total 11617.63 869.79 10747.84 4.61 685.60 11438.05 Expenditure Raw material consumed 1601.53 Trading purchase 1.38 Power, fuel, stores and repairs 6186.25 Employee cost 2454.88 Selling and administration expenses 144.93 Other expenditure and losses 49.28 Interest and financial charges 660.01 Depreciation 963.94 (Increase)/ decrease in stock 12035.20 Total 332.81 11702.39

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Profit/ (loss) before taxation Prior period items (net) Provision for taxation: Income tax Fringe benefit tax Net profit / loss after taxation Balance of loss from B/S from last year Balance of loss carried to Balance Sheet

(264.34) 14.61

0.00 (0.56) (249.17) (3808.32) (4057.49)

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BALANCE SHEET AS ON 31ST MARCH 2010 PARTICULERS SOURCES OF FUND Shareholders fund: Share capital Reserves and surplus Loans funds: Secured loans Unsecured loans Total 5248.91 497.45 5746.36 7877.55 2131.19 0.00 2131.19 RS. IN LAKHS RS.IN LAKHS

Application of funds Fixed assets: Gross block Less depreciation Work in progress Investments Current assets loans and advances Less: current liabilities and provisions Net current assets Profit and loss account Total
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16485.75 9264.12 7221.63 229.93 2.30 4006.67 4898.03 (891.36) 1315.05 7877.55

Project Department

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Project department is an independent department. The main functions of project department are execution of new projects for the company. It is an independent unit with a different function. Their main function is to prepare feasibility and to invite tenders for execution of new project. Functions of project department Involves planning, feasibility study and implementation of new projects Preparation of detailed report Preparation of feasibility report ( if it is approved by the management ) Invitation of tenders through advertisement Evaluation of tenders Agreement Execution and hand over the new project to the operation department

The company has submitted the revised detailed project report (DPR) for the enhancement of caustic soda production capacity from 175 TPD to 225 TPD by the addition of another 50 TPD membrane cell caustic soda plant to the government for approval. The revised project cost is Rs.53 crores and is proposed to be financed by internal generation and commercial borrowing. The project implementation period is 22 month from the date government approval. The company has signed a contract with UHDE India limited for the basic and detailed engineering services for a horizontal brine saturator system and modification in the existing secondary brine purification system in the caustic soda plant. In order to study the technical and commercial feasibility of the proposal for supplying excess hydrogen gas available after internal consumption to HOCL, Ambalamugal through underground pipeline, the company engaged M/S. FEDO, Udyogamandal to prepare a DPR. As per the DPR prepared by FEDO the total estimated financial outlay for the proposal is Rs.1923lakhs. The company has a proposal to transport raw material and products through
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barges with the support of inland water authority of India. The total capital cost is estimated to be Rs.188.62lakhs.

Materials Department

Materials Department Material is an important factor of production. Materials department of TCC plays an important role in reducing cost and increasing the profit. Going with the technical changes, it has a computerized purchases inventory control system. The main materials used in the industry are given a 10 digit code to avoid complexities in handling. The materials department is divided into 2; Purchase department Inventory control department.

Purchase department The department handles the purchase activities of TCC. The various raw materials needed for production are procured by this department. The materials are purchased at the right time in right quantity from the supplier. Materials are procured as per the request of inventory control section. Steps in purchasing of raw materials Purchase indent: department. Indenter raises Material procurement request (MPR) to the

inventory section. If the material is not available, the form is sent to purchase

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Enquiry: Purchase department send enquiry to the approved vendors on the receipt of purchase indent

Receiving quotation: Quotation are received and opened by a committee which contains 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

Approval: It is verified by audit section. Concurrence from audit department is obtained. Purchase order: File is send to the concerned party. Store and Inventory control department Stores department stores the raw materials of about 6000 items stored which include raw materials, chemicals, electronic goods, equipment, sparer etc. The various items are given 10 digitcodes for easy handling. It has computerized system of material handling. Steps in receiving materials

Visual inspection: To first check the purchase order. Purchase order number is checked. Only after this the material is received and stored.

Preparation of receiving reports. Inspection report: Check whether the material is real. Inspection is done by DMIC. Inspection report is made.

Payment: Indenters check the material, receiving and inspection report is dispatched to accounts department.

Preparation of rejection report: If the material is not in proper condition, goods rejection report is prepared. It is send to purchase department. They inform this to the supplier. New supply is done only after this.

Inventory control department

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Inventory control is an essential function of stores department. It helps to reduce cost and increase profit of organization. If material is not coded, codification is done by DMIC. For controlling the inventory, certain levels of inventory such as maximum, minimum and reorder level is prepared. When the stock reaches the reorder level, purchase request is made. Inventory Control Technique used at TCCABC Analysis: it is based on consumption. Here the inventory is divided 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 these stocks are included in A category. Another 20 %of stock covers 20 % OF total cost and falls in category B. The remaining 70 % of materials in the stores contribute 10 % of total cost of materials and are included in the C category. Different controlling techniques are applied for each category.

Objectives of Inventory Control

Unwanted piling of inventory is prevented. Material codification to avoid duplication. To determine the item to be stored. To keep suitable records To determine which and how much to replenish. To disclose obsolete item.

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ENGINEERING DEPARTMENT

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Engineering department The department is headed by manager engineering and has four sections Utility and statutes Mechanical maintenance Maintenance planning Civil section

Utility and statute section This is the service section in TCC, which provides services and man power to other departments. U&S section has a well-defined structure and has more about hundred members under the section head chief engineer. They provide workers on the basis of request from various department heads. Functions Provide different utilities including statutory services Provide operators and transporters for automobile work Chlorine cylinder maintenance including regular maintenance, painting and statutory testing

Welding, machinery, painting and salt crushing Material movement and handling Statutory research of equipment and tools Maintain and run workshops for fabrication and machineries

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Statutory testing of tanks

MECHANICAL AND MAINTENANCE SECTION Mechanical section tends to be the back born of TCC. This section handles all types of manual maintenance and look forward to maintain the machines in the best possible manner and ensure healthy and sound flow of work within the organization. Objectives

To ensure all equipment engaged in production are in good condition To cut down time of critical equipment repair To reduce cost due to inefficiency in handling the equipment

Mechanical maintenance process

Purpose: to ensure equipment needed to achieve conformity of production requirements in quality and quantity and substantially maintained

Scope: the process plan covers the mechanical maintenance of all plants equipment, machineries, and piping including electrolysis

Responsibility: chief engineer has the overall responsibility of the process

Types of maintenance Preventive maintenance Activities: Preventive maintenance plan is prepared for the equipment On the scheduled date preventive maintenance is carried out as per the check list

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Break even maintenance Activities Receive request for the repair in duplicate from the user department Study the nature of work and based on this study work is assigned and planned for the space procurement and shut down wherever necessary The assigned or planned work is then executed On the completion it is confirmed to the user and another copy is sent to the maintenance or planning with the execution details Details of work done are recorded in the maintenance log book Major work carried out i.e. modification and replacement are recorded in the equipment history register

Maintenance planning section A chief engineer heads this section. The major objective of this section is to assist other departments and sections Viz. U&S, civil, and mechanical maintenance, electrical and instrumentation, in planning and implementing on engineering works. The section also provides the assistance to project department in the development of new project. Functions Carry out the task of procurement of engineering departments equipment, spares, piping and other vessels The major engineering activities are planned Prepare the annual maintenance contract Check plant feasibility and availability

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Civil section Civil section is an independent department headed by chief engineer. All other sections heads in the engineering departments repots to the ME who reports to DGMT but CE report directly to the DGMT. The main role of this section is the construction of buildings and other infrastructures within the premises of the company. It is also engaged with the social task of maintaining the premises and surroundings in a clean and hygienic manner to ensure the smooth flow of industrial activities. Functions Maintenance of existing buildings Roof maintenance work Painting and insulation Tender issue for civil work Preparing material procurement requisition of steel, sheet, cement and other construction of materials except sand Preparation of annual preventive maintenance plan

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SWOT ANALYSIS

STRENGTH Only Chlor-alkali unit in India Companys products are basic chemicals and are considered to be the building block

of chemical industry. Best quality caustic soda. Qualified work force, managers and skilled laborers. Excellent transporting facilities and proximity to national highway, railway line,

airport and sea port. Strategic location with no other competitors around at present. Availability of water, as TCC is situated in the bank of riverperiyar.

WEAKNESSES TCC is a public sector undertaking. The political condition of the state, effect the

management of the company. The major decisions of the company have to be approved by the state government

whichdelays the implementation of plants and thereby creating organizational inflexibility. Lack of profit motives lead to poor performance. Surplus manpower. Employees cost is high compared to industrial standards. Large consumption of energy. It constitutes about 60% of manpower cost. Raw material is not available in the vicinity, so transportation cost is high.
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Company is not much concentrating on marketing activity.

OPPORTUNITIES Kerala minerals and metal ltd. is going for expansion. This is beneficial for TCC. Expansion plans of Cochin Refineries and Hindustan News print ltd. Economic development of the country may results in a higher demand for products

especially chlorine in near future. Company is planning to increase the capacity by 50 tons per day.

THREATS Hike in price of electricity. The important duty policy of central Government is not fair and caused periodic

fluctuations in the price of the companys product. The industry is in the matured phase of the life cycle, hence there is a low prospect for

future growth and might be on decline path if substitutes are not found out. The infrastructure of the company is obsolete compared to the others. High competition.

MISSION AND VISION OF TCC TCC is committed to supply quality chemicals at competitive price to customers. Customer satisfaction, concern for environment and safety are our priorities. We intend to achieve: Utmost level of conservation of all resources including energy. Cost effectiveness in all the operations. Regular up gradation of technologies used in processing.
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Compliance with laws and statutory regulation.

OBJECTIVES

Produce and market chemicals and caustic soda economically and in an environmentally sound manner. To maintain optimum levels of efficiency and productivity and to secure optimum return on investment. To maximize profit from project taken up. To continuously upgrade the quality of human resources of the company and to promote organizational development.

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Findings

No strikes report of last ten years. The major customers of TCC are pharmaceutical companies, soap industries, insecticides and pesticides industries, paper industries and rayon industries. TCC has flexible credit policy up to 45 years. Pricing policy is average according to the international standard. New technology of membrane cell has the advantage of pollution free environment and also it brings about 30% reductions in electric power requirements. The customers have reported no rejection of TCC product, which shows the product satisfaction. The major competitors are SPIC and Chemplast. L o c a t i o n p r e f e r e n c e , r e f e r e n c e a n d q u a l i t y a r e t h e m a j o r criteria for selecting manufacturer. Company follows management by convenience and notmanagement by objectives. TCC have a flexible credit policy, they give credit facility upt o 3 0 - 4 5 d a y s a n d t h e y a r e g e t t i n g c r e d i t o f 6 0 d a y s f r o m suppliers.. 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, servicesand the delivery. No strikes have been reported for the last 10 years, it showsthe relationship of workers and management as better. The company is depending heavily on electricity and around60% of their product price is for this. New technology free of Membrane cell and has it the advantage about

of pollution

environment

also

brings

3 0 % reductions in electric power requirements. No major environment pollution has been reported for thepast 50 years of operations.

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Suggestions

One of the raw materials is electricity, which is an important factor of production for the company, so it is better to go for a mini process of its own. The company must try to activate the R&D cell in order to have new inventions in this field. For the smooth functioning they must invest a reasonable amount of working capital. TCC should persuade worker to use safety equipment. The company has to improve the supply of the product, if possible. TCC should take certain adjustment in the price of the product. In order to increase the production the company may try giving some motivationto the employees. The company shall take necessary actions to maintain the ratios at the standardlevel. 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 equipment.

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Conclusion

TCC Ltd. is a state owned undertaking engaged in manufacture of basic chemicals like caustic soda, hydrochloric acid, chlorine, sodium hypo chloride etc. These are required by various industries within and outside the state. TCCs products have national reputation for quality and company gives high priority to customer satisfaction. It is an inorganic chemical company. TCC take vital step at the right time to make innovation in technological up gradations as well as organizational improvements which had helped it to face problems quite efficiently. Up to 1995-1996, company had recorded a study growth in production as well as in sales. After that period eventhough sales remain on an average, the company could not make any profit. This was due to implementation of membrane cell technology in the place of mercury cell technology. The higher electric charges compared with other states also affected the profit of the company. TCC enjoys a lion share of the market in Kerala and would continue to do so. The joy and hardship to build a good career was reflecting from the department heads at TCC, which has motivated me to the greatest extent and fills confidence in me to face the challenges in my life. As per the study conducted in organization, the capacity of production in increasing and the company is moving to profitable stages.

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BIBLIOGRAPHY

C.R. Kothari, Research Methodology, New Age International Publishers, second edition, 2004. Philip Kotler, Marketing Management, Prentice Hall of India Private Limited, Tenth Edition, 2002. Annual Report 2008-09, Travancore-Cochin Chemicals Ltd. www. tcckerala.com www.moneycontol.com

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