1.

INTRODUCTION

The main aim of the organizational study is to acquire the knowledge regarding the functional as well as the management aspects of an organization. It helps us to familiarize with a business organization and the different department in the organization and their functioning. The organizational study is at The TRAVANCORE COCHIN CHEMICALS LTD, Kochi, Kerala. The TCC Ltd is a Public sector undertaking owned by the Government of Kerala situated at Udyogamandal in the Cochin Industrial belt. The factory and the registered office are located at 20km from the Cochin International Airport and 15km from the Ernakulam Railway station. Incorporated in 1951, TCC is one of the oldest chlor-alkali units in the subcontinent. Today it has a production capacity of 85000 MT caustic soda/annum. The company supports a large number of industrial units of strategic importance by supplying basic chemicals with continuous efforts for up gradation of technology and professional management.TCC is located on the banks of river Periyar, one of the finest waterways in Kerala, and is recognized as an artery for its coastal trade and commerce. The word 'business' is actually derived from the idea of 'busy-ness'. This idea accurately describes most organizations: they are busy organizing resources, producing, selling, managing people and keeping track of finances. The people running the business have to organize people, money, materials and machines to produce a good or service to sell or give to their customers. The discussion I instigated was with a worker who works for Mars. His job is a sales development manager which involves him being part of a sales team which is the final connection between Mars and its marketplace. Their key responsibility is to manage business relationships with retailers, providing brands to consumers. Sales teams translate brand strategies into practical promotions that build sales at retail level. 1. What is the legal structure of the organization? Mars is an incorporated business; this means it has a separate legal identity from its owners.

The chemical industry comprises of the companies tha tproduce 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 than70,000 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 consumes26% of its own output. 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 tonnes per annum andhas since grown into a 2.24 million tone per annum capacity industry. In the process of manufacturing chlo ralkali some bye products are assured. For each tone 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, Chlorine is basic chemicals and are usedby almost all industries Organizational studies encompass the study of organizations from multiple viewpoints, methods, and levels of analysis. For instance, one textbook divides these multiple viewpoints into three perspectives: modern, symbolic, and postmodern. Another traditional distinction, present especially in American academia, is between the study of "micro" organizational behaviour which refers to individual and group dynamics in an organizational setting and "macro" strategic management and organizational theory which studies whole organizations and industries, how they adapt, and the strategies, structures and contingencies that guide them. To this distinction, some scholars have added an interest in "meso" scale structures - power, culture, and the networks of individuals and units in organizations and "field" level analysis which study how whole populations of organizations interact.

Whenever people interact in organizations, many factors come into play. Modern sciences, organizational studies seek to control, predict, and explain. There is some controversy over the ethics of controlling workers' behavior, as well as the manner in which workers are treated (see Taylor's scientific management approach compared to the human relations movement of the 1940s). As such, organizational behaviour or OB (and its cousin, Industrial psychology) have at times been accused of being the scientific tool of the powerful. Those accusations notwithstanding, OB can play a major role in organizational development, enhancing organizational performance, as well as individual and group performance satisfaction commitment. Organizational studies, sometimes known as organizational science, encompass the systematic study and careful application of knowledge about how people act within organizations. Organizational studies sometimes is considered a sister field for, or overarching designation that includes, the following disciplines: industrial and organizational psychology, organizational behavior, human resources, and management. However, there is no universally accepted classification system for such subfields.

PURPOSE
The study was conducted with the help & support of the employees of different departments of TRAVANCORE COCHIN CHEMICALS. It is done during the period from 30th May to 23th July as a part of the partial fulfillment of the Masters of Business Administration Degree. This report summarizes the following department's activities which include Operations/Production, Marketing, Finance, Training & Development, Human Resource Department, Materials, Project, Systems, Engineering, Technical, Security Department.

2. INDUSTRY PROFILE Chemical Industry in General

The chemical industry comprises of the companies that produce industrial chemicals. 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 output. Major industrial customers include rubber and plastic products, textiles, apparel, petroleum refining, pulp and paper and primary metals.

Specialty chemicals are a category of relatively high valued, rapidly growing chemicals with diverse end product markets. They include electronic chemicals, industrial gases, adhesives and sealants as well as coatings, industrial and institutional cleaning chemicals and catalysts. Chemicals in the bulk petrochemicals and intermediates are primarily made from Liquefied Petroleum Gas (LPG), natural gas and crude oil. Typical large volume products include ethylene, propylene, benzene, toluene, xylene, methanol, VinylChlorideMonomer (VCM), styrene, butadiene and ethylene oxide. Other derivatives and basic industrials include synthetic rubber, surfactants, dyes and pigments, turpentine, resins, carbon black, explosives and rubber products contribute about 20% of the basic chemicals external sales. Inorganic chemicals (about 12% of the revenue output) include salt, chlorine, caustic soda, soda ash, acids (such as nitric, phosphoric and sulphuric ) titanium dioxide and hydrogen peroxide. Fertilizers (about 6% of the revenue output) include phosphates, ammonia and potash chemicals. Consumer products include direct product sale of chemicals such as soaps, detergents and cosmetics.

Chemical industry is highly heterogeneous with following major sectors. y y y Petrochemicals. Inorganic chemicals. Organic chemicals.

y y y y

Fine & Specialties. Bulk Drugs. Agrochemicals. Paints & Dyes.

Indian Chemical Industry

The Indian Chemical Industry is a significant component of the Indian economy with revenues at about USD 28 billion. Indian Chemical Industry contributes about 6.7% of Indian GDP and 10% of total exports. The industry contributes around 20% of national revenue by way of various taxes and levies. Volume of production by chemical industry positions India as third largest producer in Asia (next to China and Japan). The chemical industry accounts for about 13% share in the manufacturing output. The industry is a vital part of the agricultural and industrial development in India and has key linkages with several other downstream industries such as automotive, consumer durables, engineering, food processing etc. With the current levels of performance the Indian Chemical Industry ranks twelfth in the world production of chemicals. The chemical industry has achieved a growth rate of 8.6% over the last few years making it one of the fastest growing sectors in India. This industrys growth rate has been twice the Asian growth rate over the last five years. But the asset creation has been the lowest. The Indian Chemical Industry is faced with multiple challenges. It is emerging from a protected environment into a highly competitive global market. At the same time the domestic market shows a path to maturity with a high demand potential for chemical endproducts. In terms of consumption, Indian chemical industry itself is its largest consumer; as the basic chemicals undergo several processing to manufacture downstream chemicals. The industry accounts for approximately one-third of the total consumption. Gujarat is the major contributor to the basic chemical as well as petrochemical production with 54% and 59% share, in all India production, respectively. Other major states producing basic chemicals include Maharashtra (9%), Tamilnadu and Uttar Pradesh (6% each). Other major states producing petrochemicals include Maharashtra (18%), West Bengal (12%), Uttar Pradesh (4%) and Tamil Nadu (3%).

India is also an importer of chemical products. Indias chemical imports are either for the purpose of further processing in the chemical industry or for usage as intermediates in other manufacturing sector. India has been sourcing its imports mainly from China (20% of Indias total chemical imports), followed by USA (8%), Saudi Arabia (6%), Singapore, Morocco and Germany (5% each).The Government has been announcing a number of measures to improve the competitiveness of the Indian chemical industry. These include: abolition of industrial licensing to most of the chemical sub-sectors, excepting a small list of hazardous chemicals. The Government is also continuously reducing the list of reserved chemical items for production in the small scale sector, thereby facilitating greater investment in technology up gradation and modernization. The Government has initiated policies for setting up of integrated Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIR). Such an initiative is likely to attract major investment, both domestic and foreign, into the regions, which would have enabling infrastructure that would provide conducive and competitive environment for setting up of manufacturing units. PCPIR would reap the benefits of co-siting, networking and greater efficiency through use of common infrastructure and support services. Such an industrial complex would boost manufacturing activities, augment exports and generate employment. Government is a signatory to Chemicals Weapons Convention, which is an universal, non-discriminatory, multilateral Disarmament Treaty that bans the development, production, acquisition, transfer, use and stockpile of all chemical weapons. India has passed the Chemical Weapons Convention Act, 2000, which has come into force in 2005.Indian Chemical Council (ICC also known as Indian Chemical Manufacturers Association) is the nodal point / signatory representing India under the Responsible Care Initiative. ICC has prepared codes, guidance notes for implementation of process safety, employee health and safety, pollution prevention, emergency response and product safety. ICC is continuously interacting with regulatory bodies on various issues like emergency preparedness, and safe transportation of hazardous chemicals. Indian chemical firms have in place technical agreements with multinational firms to keep abreast of the technological development in the global chemical industry, and to explore possibilities of adapting the technology to meet the specific requirements of the Indian market. Such a strategy helped the firms to have continuous up gradation in technology, resulting in a wide and superior product portfolio. Strategies have also been adopted by Indian chemical firms to cut down cost of production through leveraged buy-out for sourcing cost efficient raw

materials and solutions for energy efficiency. Some Indian chemical firms are engaged in continuous research and development activities to innovate new applications to increase end user segments. Consolidation through buy-outs of brands and business is another strategy adopted by Indian chemical firms. Indian chemical firms are leveraging their manufacturing expertise and enter into contract manufacturing with multinational firms. These include custom manufacturing and private labeling.

CHALLENGES AND STRATEGIES CHALLENGES

Indian chemical sector has grown a long way since its early days of independence. The sector has grown from a small-scale sector to multi-dimensional sector, which is taking on the challenges of globalization. There are few factors, which hinders the growth of the industry. These include:

High prices of basic feed stock

Basic raw materials constitute major portion of cost of production (30% to 60%) in the chemical industry. Indian chemical industry either uses natural gas or crude oil as feedstock for manufacturing process. The fluctuations in oil prices therefore affect the growth projections of the firms. At times, the manufacturers are unable to pass-on the cost escalation (occurring due to sudden increase in oil prices) to end consumers. Cost optimization is thus critical for the chemical units, as their margins may go under pressure during oil crisis.

Low Level of ICT interface

Globally, information technology is being extensively used in several areas like chemical processing and manufacturing. Application of information technology in the chemical sector is mainly for equipment design, chemical engineering, and process simulation that have helped in

reducing product and process development time. Information technology is also increasingly used in the area of R&D, especially in collaborative research. The usage of information technology in Indian chemical industry is relatively lower, as most of the units are in the smallscale sector.

Low Level of Brand Development

Indian chemical producers, excepting a few large producers, generally sell their products as generic products without brand development. There is also low level of interest amongst small scale producers for brand development, product development as also market development.

Low Level of Common Infrastructure

In general, due to its very nature, the chemical / petrochemical industry requires certain basic infrastructure facilities, both in the process chain as also in the supply chain. In the process chain, the critical infrastructure requirements include a common effluent treatment plant, and an effective green belt segregating the industrial units from human settlements. In the supply chain, the critical infrastructure requirements include a good port, chemical storage terminal, and adequate berthing facilities. In the above context, it is being felt that the production and export earnings of this sector would receive a quantum jump if an industrial estate dedicated to the chemical industry could be set up. At present, each unit has to create specialized facilities on its own which leads to duplication of efforts and investment. If chemical units are clustered in close proximity, the required infrastructure could be vertically integrated resulting in cost reduction.

Environmental Regulations
Safety, health and environment protection issues are becoming important concerns for the Indian chemical industry. As with other industries, the chemical industry needs to comply with regulations such as Occupational Safety and Health and Process Safety Management regulations.

Environmental safety, occupational safety and process management safety can easily be met if a firm is manufacturing large volume of single chemical. But it may not be relatively feasible for the firms who manufacture low volume and large number of chemicals in a single plant.

Dumping / Import Competition

The chemical industry is the second largest industry that has attracted large number of anti-dumping actions in the world.

STRATEGIES Focus on Core Competence

Chemical products trade is increasingly getting specialized all over the world. Innovation is increasingly becoming an important factor to focus on core competence and to become manufacturers to focus on select business segments where competitive advantage exists. Such strategies would help Indian chemical manufacturers to establish relationship with their customers in profitable segments and exit non-competitive segments.

Strengthening Technological Competence

Indian chemical industry should strive for continually improving its production processes and products by investing resources in technology development. Technological development may be achieved by the chemical industry at two levels. In the bulk products segment, the chemical industry should undertake process innovation with the objective of reduction in cost of production. In addition, the industry needs to invest in technological resources that would lead to specialized product development. Liberalization process has already increased the possibility of intra-firm transfer of technology and management practices in the form of consolidation within the economy as also from developed countries through foreign direct investment.

Improving Basic Management Capabilities

Indian chemical industry has a good record of management expertise. This could be further leveraged with techniques such as Good Manufacturing Practices, Good Laboratory Practices, Total Quality Management, Total Production Management and Risk Management. The Principles of Good Laboratory Practices have been developed to promote the quality and validity of test data used for determining the safety of chemicals and chemical products. Such practices would result in quality improvement and lower cost, thereby improving competitiveness.

Adhering to Environmental Norms

Chemical substances are used in manufacture of consumer items such as paint, glue, insect spray, cosmetics and household cleaners, chemical producers have the responsibility in promoting safe management of substances starting from design in production to end-use, and their final disposal (hazardous waste).Environmental regulations were the principal reason for the relocation of manufacturing facilities from developed to developing countries. To garner a greater share in world chemicals market, Indian chemical industry needs to address various developmental issues such as sustainable chemistry, adherence to safety and health and risk management.

Focus on R&D
Research and Development in the chemical sector may be undertaken in areas such as: Product development; Process innovation; Equipments for production; and Research related to application/safe use of chemicals.

The basic chemical sector should focus on process innovation and product development and strengthen their competitiveness through improvements based on performance and quality of

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products. Firms in knowledge based chemical sector should focus on R&D with the objective of achieving product leadership and process innovations. The petrochemical sector should focus on application R&D, as new applications have to be identified to increase use and application of polymers.

Collaboration
The chemical industry needs to enhance their collaborative efforts in order to improve competitiveness. Collaboration amongst players in the chemical industry could happen both at cluster level (for sharing of common infrastructure) as also at firm level (for sharing of knowledge and technology).Collaboration with firms across borders for technology and investment would also give a boost to the industry. In addition, the players should also achieve greater level of industry-institutional partnership for knowledge development and sharing.

Increasing ICT interface

Chemical firms in India can gain a lot by making their manufacturing process IT-enabled. Information Technology (IT) can bring a good change in entire process cycle from technology, engineering and procurement to manufacturing, by integrating them with business processes in all these areas. This will eventually result in higher efficiency for the industry. Increasing use of IT to transact business will also help the sector, as most of the products in the chemical sector are commoditized.

Consolidation

The new trend in chemical industry is competing through consolidation. Chemical firms, through mergers and alliances are now achieving economies of scale all over the world. Consolidation helps the chemical industry in reduction of cost in their procurement and production. Such consolidation exercises also provide for reduction in overheads, marketing

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expenses, increased efficiencies in supply chain management, and enhanced presence in various regions.

Industry - Academia Linkages

For transforming ideas into new products, partnership between industry and academia is a must. Thus, Indian chemical industry should leverage the potential of educational and research institutions to source intellectual as well as human capital. Such linkages may be effectively used for setting up of in-house R&D facility or for outsourcing R&D activities. The educational institutions could play a greater role for development of Indian chemical industry by offering courses and conducting research proactively. The research and academic institutions may also open local offices within chemical clusters to facilitate greater level of interactions.

Marketing and Promotion

Indian chemical industry should increasingly focus on marketing and promotion to achieve greater share in global chemical trade. The industry may endeavour to concentrate more on issues such as brand building, export promotion and market development. These aspects can be easily tackled through adoption of superior process technologies and adhering to quality and environmental standards.

Setting up of Chemical Parks or Mega Chemical Estates

In order to address the issue of capacity expansion and for creation of common infrastructure, the chemical industry, in association with the Government may establish exclusive Chemical Parks a concept similar to the Software / Hardware Technology Park. It is also important to consider establishment of exclusive Chemical Zones on the lines of Special Economic Zones to give a fillip to the industry. In such Parks / Zones, the industry may be

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encouraged to set up mega chemical plants that could contribute to increased production as well as employment generation. The Government has already initiated policies for setting up of integrated Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIR).

De-reservation of Select Chemical Production

Many chemical products are still reserved for production under small-scale sector. However, cost competitiveness as well as technological compliance cannot be achieved without operating under scale economies. Most of the firms operating at the global level are big ones and enjoy economies of scale. De-reservation of chemical products reserved for production under small-scale sector can be a good measure to support the globalization efforts of the industry.

Creation of Modernization Fund

A modernization fund on the lines of technology up gradation fund established for the textile sector may be created to strengthen the technological competence of the industry.

Increasing Consumption Levels of Chemicals

Per capita chemical consumption in India is low as compared to world standards (estimated to be one-tenth of world average).Increasing consumption level in the domestic market would ignite the prevailing latent demand. This could be achieved through increasing applications through R&D and enhancing the knowledge of end consumers. The industry, thus, has a major role in increasing the per capita consumption level in the domestic market.

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MAJOR CHEMICAL GROUPS AND SUB-SEGMENTS PRODUCED IN INDIA

Alkali

Such as Soda ash, Caustic soda, and Liquid Chlorine.

Inorganic chemicals

Such as Aluminum fluoride, Calcium carbide, Carbon black, Potassium chlorate, Sodium chlorate, Titanium dioxide and Red phosphorous.

Organic chemicals

Such as Acetic acid, Acetic anhydride, Acetone, Phenol, Methanol, Formaldehyde, Nitrobenzene, Citric acid, Maleic Anhydride, PentaErithritol, Aniline, Chloro methanes, ONCB, PNCB, MEK,

Acetaldehyde, Ethanolamines, Ethyl acetate and Ortho nitro toluene.

Pesticides

Pesticides and insecticides registered under the Insecticide Act of 1968.

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Dyes and dyestuff

Such as Azo dyes, Acid direct dyes, Basic dyes, Fast colour bases, Ingrain dyes, Oil soluble (solvent dyes), Optical whitening agents, Organic pigment colours, Pigment emulsion, Reactive dyes, Sulphur dyes, Vat dyes, Food colours and Napthols.

Petrochemicals

Such as Synthetic fibers, Fibre intermediates, Polymer, Elastomers, Surfactants and Performance plastics.

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3. COMPANY PROFILE HISTORY

Seshasayee brothers established the Travancore Mettur Chemicals in 1951(Under Indian Companies Act 1956) in joint venture with Fertilizers and Chemicals Travancore Ltd(FACT).Commercial production was started in 1954 with a capacity of 20 TPD Caustic soda. It has the distinction of manufacturing unique product named Rayon Grade Caustic Soda. When financial problems happened to the company the then Travancore-Cochin government provided financial aid and it was taken over by the government. Thus it got renamed as Travancore Cochin Chemicals and subsequently after the independence it was taken over by the Govt of Kerala and it became a public ltd company. At present its production capacity is 175 TPD Caustic soda and it plans to expand its capacity to 225 TPD Caustic soda. About 50 corers is needed for the expansion which will take 2-3 years to complete. The company undertook expansions in 1961,1964 and 1975 using Mercury cell technology. As Mercury cell technology is creating problems the company went for the latest technology which resulted in the shifting of the companys technology from Mercury cell technology to Membrane cell technology which is an environment friendly technology. Membrane cell technology was commissioned in 1997 with technical help of ASAHI Glass Co Ltd in Japan. The products of TCC are Caustic soda, Chlorine, Hydrochloric acid and Sodium Hypo Chlorite. The raw materials used for the production of these products are Common salt, Electricity and Water. About 60% of production cost is spend by TCC for Electricity. When Mercury cell technology was used there was a requirement of 3700 units of electricity for producing 1 TPD Caustic soda. But due to the introduction of Membrane cell technology the consumption got reduced to 2600 units of electricity for the production of 1 TPD Caustic soda. Common salt is brought mainly from the salt pans of Tuticorin in Tamilnadu. Water needed for the production is met from the river Periyar. At present TCCs strength is about 800 workers which comprises of 700 employees and 100 managerial staff.TCC is accredited with ISO 9001:2008 certification in 2006 and company is planning to go for ISO 14000 certification.TCC is the only public ltd company manufacturing Caustic soda in India. TCCs competitors are all private companies.TCC has decided to join hands with Indian Space Research Organization (ISRO).Sodium per chlorate is

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used as fuel in rockets. Sodium chlorate is the essential raw material for making Sodium perchlorate.TCC and ISRO has signed the deal for the production and supply of Sodium chlorate.

COMPANY INFO

Company name Type Nature of business Number of Employees Turnover Major Markets Year of Establishment City Province/ State Country/ Region Company Contact

: THE TRAVANCORE COCHIN CHEMICALS LIMIT : A Government Company : Manufacturer, Exporter : more than 1000 People : US$ 10-25 Million (or Rs. 40-100 Crores Approx.) : Indian Subcontinent : 1951 : Kochi : Kerala : India : THE TRAVANCORE COCHIN CHEMICALS LIMITED Add: Post Bag No. 4004, Udyogamandal, Kochi, Kerala, India Tel No : 91-484-2545011/2548583

Products

: Caustic soda, Chlorine, Hydrochloric acid, Sodium Hypo Chlorite

Website

: www.tcckerala.com

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3.2 Initial Investment for the company

Investors

Amount ( in corers)

Government of Kerala

11.90

KSIDC

8.11

FACT

6.50

Mettur Chemicals Ltd

3.50

TOTAL

30.01

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3.3 Present Capital Information

Investors

% of shares

Government of Kerala

80

KSIDC

17

FACT

Mettur Chemicals Ltd

TOTAL

100

3.4 Mission Statement

 Supply quantity and quality chemicals at competitive prices to customers.  Customer satisfaction and concern for environment & safety.  Utmost level of conservation of all resources.  Cost effectiveness in all operations.  Regular Up gradation of technologies used in processing.

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3.5 Achievements
The major achievements are:

1981

Best performance Award for Safety in the State from Directorate of Factories and Boilers, Government of Kerala

1987

Award for best Performance in Safety in India under Chemical Industries group from National Safety council.

1988-89

Best Pollution Control Award under group Heavy Inorganic Industries in Kerala from Kerala State Pollution Control Board.

1988-90

Prize for Productivity from Kerala State Productivity Council.

1993

Best Performance Award for Energy Conservation in the State of Kerala under group Chemical and Fertilizers above 3000KVA from Government of Kerala.

1994-95 & 1995-96 1996

Best Performance Award for the Productivity in the State of Kerala under the group Large Industries from Kerala State Productivity Council.

Best Performance Award for Energy Conservation in the State of Kerala under group Major Industries from Energy Management Centre, Government of Kerala.

1998

Performance Award for Energy Conservation under the group Chlor-Alkali Sector from Ministry of Power, overnment of Kerala.

2003

Kerala State Energy Conservation Award in appreciation of the outstanding achievements towards energy conservation and management.

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3.6 Major Customers of TCC

 Hindustan Unilever Ltd (HUL) Kochi, Kerala.  Indian Rare Earths Ltd (IRE) Udyogamandal, Kerala.  Tamilnadu Paper Mills Ltd Pugalur, Tamilnadu.  Pigments India Ltd Chalakudy, Kerala.  Indian Oil Corporation (IOC) Ernakulam, Kerala.  Mysore Paper Mills Ltd Bhadravathy, Karnataka.  Fertilizers and Chemicals Travancore Ltd (FACT) Udyogamandal, Kerala.  Travancore Titanium Products Ltd Trivandrum, Kerala.  Kerala Minerals and Metals Ltd (KMML), Kollam.  Hindustan Zinc Ltd [all units].  Hindalco Ltd Ernakulam, Kerala.  Hindustan Newsprint Ltd (HNL) Kottayam, Kerala.  Kerala Chemicals and Proteins Ltd (KCPL) Kochi, Kerala.  Hindustan Organic Chemicals Ltd (HOC) Ambalamugal, Kerala.  Kerala Water Authority (KWA) Trivandrum, Kerala.  Hindustan Insecticides Ltd (HIL) Udyogamandal, Kerala.  National Thermal Power Corporation (NTPC) [all units].  Binani Zinc Ltd Edayar, Kerala.  Steel Authority of India Ltd (SAIL) [all units].

3.7 Major Competitors of TCC

Chemfab Alkalies Ltd, Pondicherry. Andhra Sugars Ltd, Andhra Pradesh. DCW Ltd, Mettur. Kothari Petrochemicals Ltd. SPIC, Chennai. Sree Rayalseema Alkalies & Allied Chemicals Ltd, Andhra Pradesh. Chemplast Ltd, Mettur.

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3.8 Management & Board of Directors

There are 5 directors for the company. As the major shareholder, Government of Kerala nominates the Board of Directors. Professionals and Bureaucrats serve as Board members. The Managing Director is the only fulltime director in the board. The principal Secretary of the Industrial Department is the Chairman.

Chairman

K Sreenivasan IAS (Principal Secretary of Industrial Dept)

Managing Director

V Muralidharan Nair

M R Ramachandran (nominee from KSIDC) Board of Directors N Thomas (nominated director) N I Paulose (retd official nominated by govt)

Company Secretary

Smt Susan Abraham

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3.9 Products & Production Capacity

Products Caustic Soda Lye Caustic Soda Flakes Liquid Chlorine Commercial Hcl Sodium Hypochlorite

Production capacity (in tons per annum) 63,875 36,500 26,280 1,41,255 16,425

3.10 Industries served by TCC products

Caustic Soda

Soap, Paper, Textile, Fertilizers, Drugs and Pharmaceuticals, Vanaspathi, Engineering, Petroleum and Chemicals.

Chlorine

Paper, Textile, Insectides, Water Purification, Drugs, Pharmaceuticals, Mineral Processing, Sugar Fine Chemicals and Rubber.

Commercial Hcl acid

Fertilizing, Engineering, Mineral Processing, Starch, Oessin and Plastics.

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ORGANISATIONAL STRUCTURE

MD

GMT DFC

DGM (PJ)

CS & IA

AGM (OP)

AGM (E)

AGM (E & I)

AGM (M)

AGM (HR)

AGM (MT)

AGM (PJ)

AGM (T)

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MD- Managing Director GMT- General Manager Technical DGM (PJ)-Deputy General Manager (Project) DFC-Deputy Finance Controller CS & IA-Company Secretary & Internal Auditor AGM (OP)-Assistant General Manager (Operations) AGM (E)-Assistant General Manager (Engineering) AGM (E & I)-Assistant General Manager (Electrical & Instrumentation) AGM (M)-Assistant General Manager (Marketing) AGM (HR)-Assistant General Manager (Human Resources) AGM (MT)-Assistant General Manager (Materials) AGM (PJ)-Assistant General Manager (Project) AGM (T)-Assistant General Manager (Technical)

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4. OBJECTIVES OF THE TRAINING

The objectives of the training are as follows:

y y y y y y

To familiarize with the organizational climate and culture. To understand the organizational structure and various functional departments. To make an analysis of organizational performance. To have an exposure of the work environment. To realize the extent to which the theory matches with practices inside an organization. To understand the extent to which the theory matches with the actual practices seen in the organization.

y y

To study the relevance of TCC in the chemical industry field in India. To get clear idea regarding the products and their products

Soft Skills Development More and more corporations around the world recognize that, in order to gain a competitive advantage, they need to make sure their people know how to handle themselves at work and how to relate with their customers and peers. Most B-Schools cultivate soft skills to students and we take them one step higher in Internship Program. Personality Development In today's world academic knowledge alone is not sufficient to grow and excel in life. Today it is no longer possible to get a job on the basis of your qualification. It helps students with personality development during the course of internship program through.

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5. SCOPE OF THE TRAINING

The study is mainly based on the details collected from each department. It provides a better understanding at functional level of each department i.e. Purchase, Materials, Production, Marketing, Finance and Human Resource Management. Each and every activity of the company has been studied very carefully with the data available. Apart from that I gained knowledge of the functioning of different departments and their interrelationship with each other.

This study helped me familiarize with the manufacturing of emissions control and ride control products for the automotive industry. This report will be helpful for the company in order to find their weakness and buildup their strengths.

All internship opportunities are of the tactical and strategic level. Internship offers cover wide range of management specializations. For instance: marketing, sales management, HR, operations, finance and IB. All internship projects are carefully selected for future scope, ensuring that grow rapidly from the internship level to that of a corporate leader.

y y

Limited to understanding the various departments and their functions. To understand the extent to which management theory matches with the actual practices seen.

Attain information regarding the Strengths, Weakness, Opportunities and Threats of various departments.

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6. FUNCTIONAL DEPARTMENTS

The organizational chart is a graphic means of showing major departments and divisions of the enterprise and lines at formal authority. Departmentation is important for a well organized company. In this organization this is well structured. The various departments functioning in TCC are:

 Operations/Production Department.  Marketing Department.  Materials Department.  Engineering Department.  Human Resource Department.  Training & Development Department.  Technical Department.  Systems Department.  Project Department.  Finance Department.  Security Department.

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6.1 OPERATIONS/PRODUCTION DEPARTMENT

Assistant General Manager (Operations)

Plant Manager -I

Plant Manager-II

Deputy Manager (Production)-I

Deputy Manager (Production)-II

Senior Engineer (Production)-I

Senior Engineer (Production)-II

Plant Engineer-I

Plant Engineer-II

Executive Trainee-I

Executive Trainee-II

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Operational department is the most important department of TCC. This department carries out the manufacturing of all the products. The company carries out continuous production system; hence this department plays a very crucial role in TCC.

PRODUCTION PROCESS
Production is the process of converting raw materials into finished goods. It is the process of adding values to raw materials. Layout in TCC is product layout. All the sections and departments are based on these activities of production layout. Company carries out a continuous production system.

PRODUCTS MANUFACTURED
 Caustic soda lye.  Caustic soda flakes.  Hydrochloric acid.  Chlorine.  Sodium hypo chlorite.

STAGES IN PRODUCTION PROCESS

Brine preparation and primary purification. Secondary brine purification. Electrolysis. Chlorine treatment. HCL synthesis. Caustic fusion. Soda bleaches preparation.

Objectives


Reduce non confirming products.

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Maximize the availability of electrolyze operation. Optimizing the specific consumption of electricity, furnace oil and purification chemical.

Duties and Responsibilities of Operations Manager

Head of the operations department fixes monthly target of the product based on the market requirement.

He is responsible for the modification in the production process and responsible for the effluent charges.

Operations Manager has the administrative control over the operations department.

Operations Manager is the designated emergency controller during any hazardous incident that is 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 administrative control of personnel working in the plant.  Plant Manager Co-ordinates with other managers for the smooth functioning of

the plant.
 Plant Manager is responsible for the material consumption.  Plant Manager will plan the shut down activities and carry out maintenance work

of plants.

6.2 MARKETING DEPARTMENT

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Assistant General Manager (Marketing)

Sales Manager

Deputy Manager (Marketing)

Assistant Sales Officer

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The marketing department is headed by marketing manager and reports directly to the managing director. .

Duties and Responsibilities of Marketing Manager  Marketing Manager is directly responsible for sales and distribution of the products.
 Marketing Manager is responsible for the customer satisfaction.  He is responsible for organizing and co-ordinating various aspects of including sales forecasting, advertising, sales promotion and transport.  Marketing Manager is responsible for implementing product policy.  He has a crucial role in price fixation.  Marketing Manager has responsibilities regarding after sales service and complaint handling. marketing

Sections
The marketing departments have been divided into 2 sections: y y The supply section (issue). The documentation section (documentation).

Functions of the Supply section

      Preparation of schedules of dispatch and the actual dispatch. Execution of the sales offers. Maintain daily stock registers. Informing parties about the dispatch affected. Performing after sales services. Manufacturing stability in sales so as to boost credibility with the buyers.

Functions of the Documentation section

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Preparation of sales quotation/tenders, letters and amendments. Maintenance of sales offers register book and other necessary information. Keeping records of the buyers. Keeping proper documentation for buyer complaints and the after sales service provided. Preparation of sales budget, sales plan and monthly allotment correspondence with parties. The major markets are in Kerala, Tamilnadu and certain portions of Karnataka except for caustic soda flakes. All their products are mostly sold in stock in South India. There is a demand for caustic flakes from Mumbai.

THE MARKETING MIX

The major markets are in kerala, Tamil nadu and certain portions of Karnataka expert for caustic soda flakes. All their products are mostly sold in stock in south India. There is a demand for caustic soda flakes from Mumbai.

1. PRODUCTS TCC manufactures industrial products namely, 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, minerals processing, disinfectant, textiles, rubber, water purification, drugs, petroleum etc. The only branded product is soda bleach, in the name ECO CLEAN. . 2. PRICE The company has adopted a differential pricing policy. An open body namely AMAI (alkali manufactures association of India) fixes ceiling price for a p price for a particular period. Generally this price is fixed by adding up the basic price (cost of production + sales tax + excise duty + freight charges + a small percentage of profit). Price concessions are also given to long distance customers, taking into consideration their freight element.

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Approximately price for the products are as follows: PRODUCTS PRICE

 Caustic soda  Caustic soda flakes  Liquid chlorine  Commercial hydrochloric acid  Sodium hypochlorite 3. PLACE

: Rs. 21100/tone : Rs. 23100/tone : Rs 9800/tone : Rs 3500/tone : Rs 3000/tone

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.

4. PROMOTION

The products of the company are industrial products. Since TCC is the only producer of the above- mentioned products 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 TCC. The customer accepts the offer only if the price offered by our company is the lowest among the bids made. TCC generally does not give importance regarding advertisement of their products. However, the company advertises in trade journals like chemical magazine once in a while. The promotional activities include regular press releases, creation of documentary etc. promotional activities are generally done through company website www.tcckerala.com

6.3 MATERIALS DEPARTMENT

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Assistant General Manager (Materials)

Manager (Purchases)

Manager (Stores)

Manager (Inventory Control)

Deputy Manager (Purchases)

Assistant Purchase Officer

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 two:

PURCHASE DEPARTMENT

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The department handles the purchase activities of TCC. The various raw materials needed for the production are procured by this department. The materials are purchased at the right time in right quantity from the suppliers. Materials are procured as per the request of inventory control section.

STEPS IN PURCHASING
    Purchase Indent: indenter raises materials procurement request (MPR) to the

inventory section. If the material is not available, the form is sent to the purchase department. Enquiring: 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 the 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 the audit section. Concurrence from the 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 includes raw materials, chemicals, electronic goods, equipment, spares etc. The various items are given 10 digit codes for easy handling. It has computerized system of material handling.

STEPS IN RECEIVING MATERIALS

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Visual Inspection: To first check the purchase order. 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. Payment: indenters check the material, receiving and inspection report is dispatched to accounts department. Preparation of rejection report: if the materials is not in proper condition, goods rejection report is prepared. It is send to the purchase department. They inform this to the supplier. New supply is done only after this.

Inventory Control
Inventory control is an essential function of stores department. It helps to reduce cost and increase profit of organization. Codification is done by DMIC. For controlling the inventory, certain levels of inventory such as maximum, minimum and reorder level are prepared. When the stock reaches the reorder level purchase request is made.

Objectives of Inventory Control

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

6.4 ENGINEERING DEPARTMENT

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Assistant General Manager (Engineering)

Chief Engineer (Utilities& Statutes)

Chief Engineer (Mechanical)

Chief Engineer (Maintenance)

Deputy Manager (Utilities &Statutes)

Deputy Manager (Mechanical)

Deputy Manager (Maintenance)

Senior Engineer (Mechanical)

Senior Engineer (Maintenance)

Executive Trainee

Executive Trainee

FUNCTIONS

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 Providing different utilities on request including statutory services.  Provide operation and transportation for automobile workers.  Provide service like welding, machinery painting and salt changing.  Statutory research and development of equipments and tools.  Maintain two or more workshops for fabrication and machinery.

MECHANICAL MAINTENANCE SECTION

Mechanical section is found to be the backbone of TCC. All type of manual maintenance is handled by this section and look forward to maintain the machinery in the best possible manner and ensure healthy and sound flow of works with in the organization.

The engineering department has been divided into four departments: y y y y y Electrical department. Mechanical department. Instrumentation department. Civil department.

Electrical department
There are two functions for this department:   Ensuring uninterrupted power supply. Man Management.

Mechanical department

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All types of manual maintenance is handled by this section and maintains the machinery in the best possible manner and ensures healthy and sound flow of works within the organization.

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

Instrumentation department
The main functions of instrumentation department are:    Plant processing operation and control of plant and equipment. Keeping record for it. The maintenance of equipments.

Civil department
The main functions of civil department are:      Maintenance of existing building. Roof maintenance work. Painting and Insulation. Tender issue for civil works. Preparing Materials Procurement Requirement (MPR) of steel sheet cement and other construction material except sand.

6.5 HUMAN RESOURCE DEPARTMENT

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Assistant General Manager (Human Resources)

Medical Officer

Chief Security Officer

Manager (Human Resources Welfare)

Deputy Manager (Catering Service)

Assistant Personnel Officer

Human resource is considered as the most vital asset of an organization. TCC has a well defined employee power. It helps the organization to perform well in the market. Human resources department is headed by manager, HRD, who organizes the training programs for workers and managerial staff. The manager HRD is responsible only for training and

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development. MHRD does not come under the personnel department for workers and managerial staff. The main functions of Human Resource department are:             Manpower planning. Recruitment. Welfare functions (including statutory and Non-statutory welfare measures). Grievance Handling- As per the provisions of Industrial Dispute Act and as per Factories Act. Industrial Relations. Public Relations. Job Description. Training. Staffing. Performance Appraisal. Wage and Salary Administration. Promotional Policy.

6.6 TRAINING AND DEVELOPMENT DEPARTMENT

Conventional 'training' is required to cover essential work-related skills, techniques and knowledge, and much of this section deals with taking a positive progressive approach to this sort of traditional 'training'. Importantly however, the most effective way to develop people is quite different from conventional skills training, which let's face it many employees regard quite negatively. They'll do it of course, but they won't enjoy it much because it's about work, not about themselves as people. The most effective way to develop people is instead to enable learning and personal development, with all that this implies. So, as soon as you've covered the basic work-related skills training that is much described in this section - focus on enabling learning and development for people as individuals - which extends the range of development way outside traditional work skills and knowledge, and creates

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far more exciting, liberating, motivational opportunities - for people and for employers. Rightly organizations are facing great pressure to change these days - to facilitate and encourage wholeperson development and fulfillment - beyond traditional training.

The functions of the Training and Development department are:    Identifying training needs. Imparting the required training. Maintaining the training records.

VARIOUS TRAINING PROGRAMMES

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 given on the basis of appraisal. NEED BASED TRAINING Need based training will be done o the basis of determining the level of knowledge and skill one requires for a particular job. Next is to find out how many employees have to be given this training. On the basis of these needs training is given to the employees.

CUSTOMER TRAINING

Customers are given training on handling of chlorine and other products in various situations.

INDUCTION TRAINING

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It is the training provided to the newly recruited employees to familiarize with the activities, rules, policies of the organization. It is also done to introduce the new employees to the other employees of the organization.

TECHNOLOGY TRAINING Company provides advanced training for workers to cope up with the technological changes. Feed back is obtained from employees and the effectiveness of the training programme is ascertained after a period of 2-3 months.

PERSONALITY DEVELOPMENT PROGRAMES Personality development programmers are conducted in a regular time period for the development of both workers and manager.

INTERNAL TRAINING

The HRD department has the provision for conducting training. The HRD centre has a hall which can accommodate around 40-50 people and has a public address system and a LCD projection.

Every month, 3 day training programmers, is held for workers. The workers education center, under the lab our industry conduct. This programmers are conducted on contact basis, which is recorded annually. 20-25 workers from various sections are selected every month. 4-5 officers from WEC conduct the training programmers and towards the end fixes the date for the programmes of next month in consultation with the manager HRD

EXTERNAL TRAINING PROGRAMMES

TCC staffs send for external training based on the intimations; received from the external agencies. An officer has been send to madras, Trivandrum and other places. On an average TCC spends more than one and half lakh rupees in a year on training needs.

6.7 TECHNICAL DEPARTMENT

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Assistant General Manager (Technical Service)

Chief Engineer (Fire & Safety)

Chief Engineer (Technical Service)

The Technical department has been divided into two departments: y y Technical Service Section. Safety and Pollution Control.

 Technical Service Section

The main functions of this section are:   Production calculation and reporting. Production stock comparison.

 Safety Section
The main functions of this section are:   Safety Induction. Safety Inspection and Auditing.

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Safety Training. Safety Awareness Programmes.

6.8 SYSTEMS DEPARTMENT

Systems department is one of the upcoming departments of TCC. It has come into existence in the year 2006. As it is faster in company, it has not fully implemented in all departments, but the implementation work is going on. This department is under the control of project department. Manager systems are directly reported to the manager projects. 115 computers and 75 printers are there in TCC. Official website of TCC and through all the maintenance and complaint, handling procedures are done

Objectives
  Website management. Up gradation, maintenance and changes are done by manager systems.

There are two main servers in TCC

 
Database server Application server

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6.9PROJECT DEPARTMENT

Deputy General Manager (Projects)

Assistant General Manager (Projects) Assistant General Manager (Systems)

Deputy Manager C Chief Engineer (Project)-I Chief Engineer (Project)-II (Systems)

Senior Engineer (Systems)

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Project department is an independent department. The main functions of this department are the execution of new projects for the company.

The main functions of this department are:         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 new projects to operations departments.

New projects in discussion

Sale of drinking water- TCC has a water treatment plant with excess capacity. Serious discussions are going on regarding the sales of water in total area at a reasonable rate.

New projects in consideration

 

Development of a new rutile plant. Linking the whole organization with a network.

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6.10 FINANCE DEPARTMENT

Deputy Finance Controller

Deputy Finance Manager (Costing)

Deputy Finance Manager (Cash)

Deputy Finance Manager (Marketing Records)

Deputy Financial Manager (Confidential & Provident Fund)

Senior Accounts Officer (Costing) Senior Accounts Officer (General Finance) Assistant Accounts Officer (Bills) Assistant Accounts Officer (Establishments)

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Travancore Cochin chemicals limited has an efficient finance department headed by the finance manager and he is assisted by the deputy manager, finance. Finance manager is responsible for shaping the fortunes of the company, preparing budgets, raising funds, keeping different accounts etc. TCC is having management information system to assist the finance department. The finance department itself is divided into different sections like general accounts, costing bills, establishment and provident fund accounts sections each having its own functions.

The functions of finance department are:            



Purchase bills passing and payment to suppliers. Sales invoice records. Debt collection. Budgeting and costing. Statutory auditing. Finance control. Handle all auditing and taxes. Sales accounting. Generation and Utilization of funds. Treasury operations. Management Information Systems (MIS) and Corporate planning. Financial book keeping and finalization of accounts.
The functions of each department are explained below:

DEPUTY FINANCE MANAGER

Deputy finance manager controls the costing process. Various costs such as material costs and production cost are assessed. Fixed capital and working capital are also planned. A comparative study on budgeting control is made.

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FINANCE MANAGER:
The function of FM is to have an over all control of above department. The various sections coming under finance department are explained below;

GENERAL ACCOUNTS SECTION:

In this section a large number of general accounts are kept, these include;

 General journal in which the transactions are entered first.  Standard journal in which all recurring items are entered (salary, wages, excise duty).  Cash book in which all cash receipts and payments are recorded.  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. A trial balance is prepared every 4 months. Balance sheet is prepared annually for financial year from April 01 to March 31st.

BILLS SECTION In this section, all payment for purchase is recorded. This includes bills payable to suppliers and contractors. In case suppliers demand advance, it is paid and properly accounted. Sundry creditors ledger and supplier account are kept in this section. At the end of the year, the accounts are ratified and send to the general accounts section. In this section, separate cost records are kept and maintained and cost audit is conducted every year both internally as well as by the government nominees.

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COSTING SECTION Budgeting and budgetary control is the main function of costing section where both revenue and capital expenditure budget are prepared. Capital expenditure is prepared based on the total cost incurred for all itemsin all departments. Revenue budget is prepared on the basis of estimates for production, sales and expenditure. The balance sheet with total assets and liabilities shown is prepared and total cash flow is found.

SOURCE OF FUNDS For efficient production and sale there must be adequate finance for fixed asset raw material to meet day-to-day expenditure of the enterprise. Company raises fund by means of equity funds and borrowed fund. The share capital includes authorized, issued, subscribed and paid up capital. Subsidy has been received from debt service coverage ratio (DSCR) and government of kerala. Loans are obtained as term loans from IDBI and material loans from government of kerala.

6.11 SECURITY DEPARTMENT Security department functions under the personnel manager with a chief security officer and around 50 staffs. The main functions of the department are to protect the company from external threats as a part of security, pass and badges are provided to each worker. The issue of pass is given by the P.M, and the duty pass is signed by him.

Qualification
PSC TEST At least 5 years in the army.

Security staff in the entrance- exit gate will record the workers entrance exit in the organization with the help of their cards. If any employee is continuously absent for 7 days, their card will be taken back and it will be informed to the management and their pay will cut off.

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7, CONCLUSION

From the detailed study of the function of various departments in terms of working conditions of the organization has clearly revealed that the organizational environment is very systematic. The inter-departmental communications is found very effective. The qualities of the products as well as the raw materials are strictly ensured in order to attain the high quality standards of the global market. The company takes vital steps at right times to bring the innovation in technological up gradation as well as organizational improvements.TCC

enjoys a lions share of the market in Kerala and would continue to do so.

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