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A REPORT ON THE ORGANISATION STUDY

AT TRAVANCORE COCHIN CHEMICALS
SUBMITTED TO: MAHATMA GANDHI UNIVERSITY, KOTTAYAM In partial fulfilment of the requirements for the award of the degree of MBA () SUBMITTED BY: REGISTER NO:

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CERTIFICATE
This is to certify that the Summer Project entitled AN ORGANISATION BASED STUDY ON THE FUNCTIONAL AREAS OF THE TRAVANCORE COCHIN CHEMICALS LIMITED carried out by Miss, in partial fulfilment of the requirement of the Master of Business Administration (MBA) of Mahatma Gandhi University is a bonafide report of the work done by her under our supervision and guidance. This is also to certify that this report has not been submitted to any other Institute / University for the award of any Degree.

However, this certificate is not issued to endorse the views and opinions expressed in the report.

Academic Guide Dean

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DECLARATION

I, , , hereby declare that this organization based report on THE TRAVANCORE COCHIN CHEMICALS LIMITED is an outcome of my study under the guidance of and is submitted in partial fulfilment of the requirements for the award of the Degree of Master of Business Administration of the Mahatma Gandhi University. The observations, suggestions and findings of this report are based on the data collected by me during the one-month period allotted for the study. Any part of this report has not been reproduced or copied from any other report submitted to the institute.

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ACKNOWLEDGEMENT

I thank lord almighty who gave the strength and wisdom to complete the organizational study in a very successful manner. I would like to express my deep sense of gratitude to Mr. Philip Mathew, Manager Training & Development who gave me the necessary guidance and inspiration throughout the work. I would like to place it on cards my sincere thanks to my guide Smt., Faculty (MBA), for her valuable suggestions during the study. I am extremely grateful to my parents for their inspiration and to all those who had directly and indirectly helped me during the preparation of the project work.

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TITLE
1. 1.1 1.2 1.3 1.4 INTRODUCTION Objectives of the study Limitations of the study Sources of data collection Industry Profile

PAGE NO

2 2.1 2.2 2.3 2.4 2.5 2.6 2.7

COMPANY PROFILE History and growth Mission Objectives Product Profile Awards won-ISO certification Competitors Customers

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SL.NO

3 3.1 3.2 3.2.1 3.2.2 3.2.3 3.2.4 3.2.5 3.2.6 3.2.7 3.2.8 3.2.9

ORGANIZATION STRUCTURE Organisation Chart Departments Operations Department Material Department Marketing Department Technical Department Personnel Department HRD /Training Department Finance Department Engineering Department Projects Department

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SWOT ANALYSIS

5 5.1 5.2 5.3 5.4

CONCLUSION Conclusion Findings Recommendations My Experience in the organisation

BIBLIOGRAPHY

7 7.1 7.2

APPENDIX Financial statements Abbreviations

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LIST OF CHARTS

CHART NO: 3.1 3.2.1 3.2.2 3.2.3 3.2.4 3.2.5 3.2.6 3.2.7 3.2.8 3.2.9

NAME OF THE CHART Organisation Chart Operations Department Material Department Marketing Department Technical Department Personnel Department HRD /Training Department Finance Department Engineering Department Projects Department

PAGE NO

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INT RODUCTION

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1.

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 than 70,000 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 consumes 26% 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 and has since grown into a 2.24 million tonne per annum capacity industry. In the process of manufacturing chlor alkali some bye products are assured. For each tonne 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 used by almost all industries.

1.1

OBJECTIVES OF THE STUDY

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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 regarding the products and their products.

1.2. 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. No direct contacts with department are not allowed. Access to 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.

1.3 SOURCES OF DATA COLLECTION

BOTH PRIMARY AND SECONDARY METHODS PRIMARY METHOD
This is the method by which we collect data directly from the organisation. This may be of 2 types observation method and interview method. In observation method we observe the work done in the organisation and collect data from that, while in interview method it is the verbal conversation with the workers in

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the organisation 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 .

1.4. INDUSTRY PROFILE

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 $2 trillion global enterprise, and the EU and U.S. chemical companies are the world's largest producers. The largest

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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 2/3 of the entire manufacturing trade surplus of the EU. The chemical sector accounts for 12% 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, labour 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. Technology 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

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gaseous materials. Most of these products are used in manufacture of other items, although a smaller number are used directly by consumers. Solvents, pesticides, lye, washing soda, and Portland cement are a few examples of product used by consumers. The industry industrial (oils, fats, includes manufacturers ceramic of inorganicand organicchemicals, and waxes), products, petrochemicals, and flavors.

agrochemicals, polymers and rubber(elastomers), oleo chemicals explosives, fragrances Examples of these products are shown in the Table below.

Product

Type

Examples

inorganic

industrial

ammonia,

nitrogen, sodium hydroxide, sulphuric acid, Organic industrial acrylonitrile, phenol, ethylene oxide, urea, Ceramic products silica brick, frit Petrochemicals fertilizers, Bakelite, benzene, ethylene, herbicides, styrene, Polymers Agrochemicals polyethylene, insecticides, polyester,

Elastomers

polyisoprene,

neoprene, polyurethane, Oleo chemicals lard, soybean oil, stearic acid, Explosives nitroglycerin, ammonium nitrate, nitrocellulose, Fragrances and flavors benzyl benzoate, coumarone, vanillin. Although the pharmaceutical industry is often considered a chemical industry, it has many different characteristics that put it in a separate category. Other closely related industries include petroleum, glass, paint, ink, sealant, adhesive, and food processing manufacturers. Chemical processes such as chemical reactions are used in chemical plants to form new substances in various types of reaction vessels. In many cases the reactions are conducted in special corrosion resistant equipment at elevated temperatures and pressures with the use of catalysts. The products of these reactions are separated using a variety of techniques including distillation especially fractional distillation, precipitation, crystallization, adsorption, filtration, sublimation, and drying. The processes and product are usually tested during and after manufacture by dedicated instruments and on-site quality control laboratories to insure safe operation and to assure that the product

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will meet required specifications. The products are packaged and delivered by many methods, including pipelines, tank-cars, and tank-trucks (for both solids and liquids), cylinders, drums, bottles, and boxes. Chemical companies often have a research and development laboratory for developing and testing products and processes. These facilities may include pilot plants, and such research facilities may be located at a site separate from the production plant. Companies in 21st century The chemical industry includes large, medium, and small companies that are located worldwide. Companies with sales of chemical products greater than $10 billion dollars in fiscal year 2005 are shown below. For some of these companies the chemical sales represented only a portion of their total sales; for example Exxon Mobils chemical sales were only 8.7 percent of their total sales. Chemical Industry is highly heterogeneous with following major sectors:

Petrochemicals Inorganic Chemicals Organic Chemicals Fine and specialties Bulk Drugs Agrochemicals Paints and Dyes

Foreign Trade India was a net importer of chemicals in early 1990s, but has now become a net exporter due to reduction in imports because of implementation of many large scale petrochemical plants like Reliance, ONGC etc. and also because of tremendous growth of exports in sectors like bulk drugs and pharmacy, pesticides, dyes and intermediates.

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COMPANY PROFILE

2.1. HISTORY & GROWTH

The Travancore-Cochin Chemicals Ltd., popularly known as TCC was established in 1950. The idea of establishing the unit was conceived by M/s Sheshasayee Brothers the then managing agent of FACT. The venture was started as partnership concern in the name Travancore Mettur Chemicals with FACT and MCIC (Mettur Chemicals and Industrial Corporation) as partners. In 1951 the partnership was registered as a Public Limited Company, with the State Government contributing the major share of equity and the company was then named as TRAVANCORE-COCHIN CHEMICALS LTD. M/s Sheshasayee Brothers continued to be the managing agents for the next 10 years.

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Commercial production of Caustic Soda from the first plant of 20 tpd capacity was started in 1954 January. TCC is the first unit in India to manufacture Rayon grade Caustic Soda. Stages of Growth

1956 - A continuous Caustic Fusion Plant 20 tonnes per day for producing Caustic Soda flakes. 1958 - Chlorine Liquefaction Plant 1960 - Capacity enhanced to 30 tonnes day further to 40 tonnes per day.
o

per of Sodium

Established new plant for

manufacture

Hydrosulphate 3 tpd capacity

1967 - 7 tpd Sodium Hydrosulphate

o o

60 tpd Caustic Fusion Plant 4 tpd Iron free Sodium Sulphate

1975 Added another 100 tpd Caustic Soda Membrane Unit thereby increased the production capacity 200 tpd own Water Treatment Plant. TPD Caustic Soda manufacturing unit using (by 1988, many of the old unit were dismantled)

1997

100

Membarane technology capacity 125 tpd.

1998- New CCF Plant in place of existing 60 tpd. 2005 -Addition 25 tpd 2006 Addition 25 tpd

At present total installed capacity is 175 tpd Caustic Fusion plant for 100 tpd

Products:
Caustic soda lye Caustic soda flakes Liquid Chlorine Hydrochloric acid

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Sodium Hypochlorite

2.2. CORPORATE MISSION

TCC is committed to supply quality chemicals at competitive priorities. They intend to achieve Utmost level of conservation of all resources including energy Cost effectiveness in all operations Regular upgrading of technologies used in processing Compliance with laws and statutory regulation prices. Customer satisfaction, Concern for environment and Safety are our

Corporate Governing Body:

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CHAIRMAN

MANAGING DIRECTER

DIRECTOR (OFFICIAL)

DIRECTOR (FINANCE)

NOMINEE DIRECTOR (KSIDC)

DIRECTOR

uality Policy:

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 the related public an accident-free and healthy environment in its efforts to manufacture high quality products at competitive prices. The company will comply with all statutory requirements in this regard.

The company will provide a work environment in which identified hazards are controlled, if elimination is not feasible and will provide personal protective equipments wherever necessary.

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Accident prevention is the direct responsibility of the Line Management and will be an important criterion for performance appraisal. Line Management will ensure that all safety measures are incorporated in the operating and maintenance procedures as well as in any process technology changes in the plant/infrastructure.

Consideration of health and safety will be given proper weightage in selection and deployment of the personnel. The company will ensure that health and safety aspects are given due consideration in decision regarding purchase of plant equipments, machinery and materials.

Every employee of the company shall perform his/her job adopting Safe and proper work methods and using appropriate Safety equipments understanding that their career advancement is linked with SAFE performance.

Contractors, sub-contract workers, transporters and visitors entering the factory shall be required to observe health and safety practices of the company in all their activities.

All contract jobs will be carried only through the laid down procedures with appropriate supervision.

The company will carry out safety audits, risk assessment studies, emergency mock drills, and periodic assessment of health of its employees as well as status place hazards be identified, appropriately evaluated and effectively controlled to achieve this goal. Whole hearted co-operation of all is solicited for this.

Energy Policy:
At the Travancore-Cochin Chemicals Udyogamandal are always committed to conservation of energy by all possible means

To accomplish our mission, they strive for:

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Technological consumption

up

gradation

to

reduce

specific

energy

Conducting energy conservation studies including energy audit and adopting the apt measures for conserving energy Contacting other organizations and enriching our experiences on energy conservation Using renewable energy sources to the extent possible Disseminating knowledge and information on energy conservation to our employees

Low energy fuels also to be tried depending upon feasibility.

2.3. OBJECTIVES
Produce and market chemicals and caustic soda economically and in an environmentally sound manner. To maintain optimum level of efficiency and productivity and to secure optimum return on investment. To maximize profits from projects taken up. The continuously upgrade the quality of human resource of the company and to promote organization development. To improve the plants operational safety and to confirm statutory pollution controls standards. To ensure corporate growth by expansion and diversification. To care for community around.

2.4. Product Profile

Caustic Soda, Chlorine, Hydrochloric Acid form the back born of the chemical industry as it is important to the countrys economic growth.

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Products and production capacity

Products Caustic Soda Lye

Production in TPD 175(on basis) 100% NaOH

Caustic Flakes

Soda 100 72 387

Liquid Chlorine Commercial Hydrochloric Acid Sodium Hypochlorite

45

2.5. AWARDS WON AND ISO CERTIFICATION

Moving with the times, TCC keeps up its technology regularly updated and continue to be the competitive strength in the Chlor-alkali industry. With expanded plants and higher production capacity, TCC has come out to be the profitable public sector undertaking. Over the years we have achieved recognition and awards for the remarkable performance in the industry with

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regard

to

production,

productivity,

energy

conservation

and

environmental protection. 1981 - Best Performance Award for Safety in the State from Directorate of Factories & Boilers, Government of Kerala 1988-89 - Best Pollution Control Award under group "Heavy Inorganic Industries" in Kerala, from Kerala State Pollution Control Board 1989 - Award for Best Performance in Safety in India under "Chemical Industries" group from National Safety Council. 1989-90 Prize for Productivity from Kerala State

Productivity Council. 1993 - Best Performance award for Energy Conservation in the State of Kerala under group "Chemical & Fertilizers above 3000 KVA" from Government of Kerala 1994-95 - Best Performance award for the Productivity in the State of Kerala under group "Large Industries" from Kerala State Productivity Council 1995-96 - Best Performance award for Productivity in the State of Kerala under group "Large Industries" from Kerala State Productivity Council. 1998 - Best performance award for Energy Conservation in the State of Kerala under group "Major Industries" from Energy Management Centre, Govt. of Kerala. 1998 - Performance award for Energy Conservation under group "Chlor-alkali Sector". Ministry of Power, Government of India. 2003 - Kerala State Energy Conservation Award (2000) in the category of Large Scale industry

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2005 - National Energy Conservation Award "Chlor-alkali Sector"

Eco preserve: TCC is well environment aware of the responsibility that manufacturing from pollution and preserving healthy living

industries bear towards environment. Conserving the resources of conditions are important concerns at TCC. TCCs commitment is to sustain the toxic-free environment observing statutory stipulations and legal regulation.

TCC believes in pollution prevention rather than pollution control. Their activities comprise awareness programs among the employees, customers, contractors and all those who are associated with them. Their aims endeavour to is to zero minimize effluent hazardous emission and waste and to reduce the impact of the manufacturing activities. TCC achieve discharge by the end of this year.

2.6. COMPETITORS

Tamil Nadu Petro Products Ltd Belapur Industries Chemplast (Tuticorn) Andhra Sugars Ltd (Andhra pradesh) Atul Ltd (Ahmadabad) Chem Fab Alkalies Ltd (Pondichery) Kothari Petro Chemicals Ltd

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Sourashtra chemicals Ltd Grassim Industries Ltd Tata Chemicals Ltd(Gujarat) Sree Rayalaseema Alkalies and Allied Chemicals Ltd Indian Rayon and Industries Ltd Jayashree Chemicals Ltd Centuary Rayon Kothari Chemical Ltd Bilt Chemical Ltd Southern Petro Chemical Industries Gujarat Alkalies &Chemicals Ltd Sirpur Paper Mills.

2.7. CUSTOMERS
Hindustan Lever Limited-Cochin, Kerala. Indian Rare Earths Ltd-Udyogamandal, Kerala

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TamilNadu Paper Mills Limited Pugalur, Tamilnadu Pigments India Ltd. - Chalakudy, Kerala. Indian Oil Corporation. - Ernakulam, Kerala. Mysore paper Mills Ltd. - Bhadravathy, Karnataka Fertilizers & Chemicals Travancore Ltd. Ernakulam, Kerala Travancore Titanium Products Ltd.-Trivandrum, Kerala Kerala Minerals & Metals Ltd. - Kollam, Kerala. Hindustan Zinc Ltd - All Units Hindalco. Ltd -Ernakulam, Kerala. Hindustan Newsprint Limited- Kottayam, Kerala Kerala Chemicals & Proteins Ltd. Cochin, Kerala Hindustan Organic Chemicals Ltd- Ambalamugal, Kerala. Kerala Water Authority Trivandrum, Kerala. Hindustan Insecticides Ltd.-Udyogamandal, Kerala. Cochin Minerals & Rutiles Ltd.-Aluva, Kerala. National Thermal Power Corporation All Units Binani Zinc Limited- Edayar, Kerala. Steel Authority of India Limited - All Units

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MD

M E& I

ORGANISATION STRUCTURE
GMT DGMT
M OP M M MP J M E M TS

F C

M M T

C E I

C E E

M S

C E M

C E U & S

C E P C

C E T S

C E S

P L M M O

PM

D O C S O D M (P & W)

S M

DF C

M I C

M S

M P

S Y & I A

D M H T

D M L T 1

D M L T 2

D M E

D M U & S

D M P r

D M I A

S E S

S E

S E

S E T S

S O Q C

S E

S S O

S A O G A & F

S A O C A S H

S A O E & E D P

S A O C o

S A O P F

S E A

O Q C

P R O

A S P O

A A O F

A P O

1.

O r g

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VARIOUS DEPARTMENTS:
Various Departments in TCC Limited

(1)

OPERATIONS DEPARTMENT

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(2)

MATERIALS DEPARTMENT

(3)

MARKETING DEPARTMENT

(4)

TECHNICAL DEPARTMENT

(5)

PERSONNEL DEPARTMENT

(6)

H R D / TRAINING DEPARTMENT

(7)

FINANCE DEPARTMENT

(8)

ENGINEERING DEPARTMENT

(9)

PROJECTS DEPARTMENT

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OPERATIONS DEPARTMENT (1)

(1) OPERATIONS DEPARTMENT Structure of operations department:

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MANAGER WORKS

MANAGER OPERATIONS

PLANT MANAGER

Dy.M (AREA 1)

Dy.M (AREA 2)

Senior engineers

Senior engineers

Process engineers

Process engineers

Engineer of plant

Shift in Charge

Objective of Production department:

Reduce non confirming products.

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

Duties and responsibilities of operations 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 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 willl 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 Plant manager is responsible for the material consumption Plant manager will plan the shut down activities and carry out maintenance work of plants.

Raw materials: The main raw materials of TCC are;

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Common salt (1.7MT of salt / ton of caustic soda). Electricity (27000 units / day). Water

Products and Production capacity

PRODUCTS

QUANTITY / ANNUM (METRIC TON)

CAUSTIC SODA HCL ACID SODIUM HYPOCHLORITE CAUSTI SODA FLAKES LIQUID CHLORINE

57750 23760 172742 15000 30000

Introduction to product:

Caustic soda and Chlorine are generally always discussed as a combination, as they are in most case obtained as a co- product of electrolysis of Brine. This process accounts for 80 % of caustic soda and more than 95 % of chlorine production in India.

Products of TCC:

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Caustic soda. Caustic soda flakes. Chlorine. Hydrochloric acid. Soda bleach. Introduction to production process: The process of manufacture of caustic soda and chlorine through Ion exchange membrane involves following steps; Primary brine purification. Secondary brine purification. Electrolysis. Brine de chlorination. Chlorine treatment.

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USES OF PRODUCTS OF TCC:

USES

INDUSTRIES SERVED

A chemical for dissolving out extraneous Rayon and matter from wood for preparing pure cellulose, for the production of viscose solution. A chemical for preparing pure cellulose by dissolving out extraneous matter. Saponification agent. Paper and newsprint. Soaps. pulp industry

For processing of monazite and refining of bauxite.

Mineral processing

Hydrogenation of vanaspathi and oils. Electrolytic hydrogen production of NH3 synthesis. Petroleum fractions Refining.

Vanaspathi. Fertilizers

Petroleum

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Uses of Chlorine: USES For producing insecticides, pesticides. Purifying water, sterilizing sewage effluents. For bleaching. PVC and allied co-polymers. Bleach agent. Manufacture of neoprene rubber. Water purification Paper and pulp Plastics Sugar Rubber industry INDUSTRIES Insecticides

Use of Hydrochloric acid: USES Production of ammonium chloride manufacture of phosphoric acid. INDUSTRY Fertilizers .

In monazite processing for the separation of rare earth as chloride from thorium. For the manufacture of PVC.

Minerals. Plastic.

Cleaning agent in galvanizing

Engineeri ng.

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Use of soda bleach:

USES Sterilization.

INDUSTRY Sea food industry

Bleaching of jute, paper, and pulp.

Paper and pulp industry

ION EXCHANGE MEMBRANE CELL PROCESS:

For electrolysis, secondary purified brine is fed to the anode chamber, purified water to the cathode chamber and while applying DC current, movement and reaction of substance in the electrolyser will take place. In the anode chamber, electrolysis of sodium chloride occurs, converting chloride ions to chlorine on the anode mesh. Sodium ions move to the cathode chamber through the ion exchange membrane. Generated chlorine gas and depleted brine flows up to the anode gas separator by the driving force due to the lift effects, where the chlorine gas is separated and the anolyte is recycled over as depleted brine. In the cathode chamber, decomposition of water occurs, producing hydrogen gas and hydroxide ion (OH-). Hydroxide ion forms caustic soda together with the sodium ions that are passed through the membranes. Generated hydrogen gas and caustic soda flows up to

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the cathode gas separator by gas lift effects, where hydrogen gas is separated and caustic soda lye is recycled through the circulation pipe, while a part of the caustic soda overflows as one of the product. Water in the anode chamber will move to the cathode chamber through the membranes by electro-osmosis and osmosis. Membrane does not permit the movement of chloride ions and NaCl diffusion to the cathode chamber of the transfer of hydroxide ions to the anode chamber. Transfer of these ions will result in loss of current efficiency. Hydrogen ions if any, diffused from the cathode chamber to the anode chamber will produce oxygen gas, hypochlorite and chlorate by reacting with Chlorine gas.

BLOCK DIAGRAM OF MEMBRANE CELL PROCESS:

RA W

BRINE

SOLUTI

BRINE PURIFICATIO N

ELETROLY SIS

DECOMPOSIT ION

DECHLO RINATIO N

Cl2

H2 gas

32% Caustic soda

Sale s Cl2 treatment H2 treatment CCF plant

Chlorine liquefaction

HCl synthesis unit

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Liquid Chlorine

Commercial HCl acid

CCF Plant
General description of CCF Plant This plant has one of the most advanced technologies. It is suitable to produce export grade caustic soda flakes from NaOH solution generated in ion exchange membrane cells and liquid NaOH solution of 50 % concentration. It is designed for optimum low energy consumption. The equipment and plant are proven design and safe in operation.

Duties and Responsibilities of Plant Manager

Plant Manager is the custodian of plant. He plans the production activities to meet the production. He is responsible for material consumption. Plant Manager plans the shutdown activities and carries out the maintenance work of plant. Plant plant. manager coordinates the operation functions with managers of other department for the smooth functioning of the

FIRE AND SAFETY DEPARTMENT

The fire and safety

department is mainly concerned with the safety atmosphere in the

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company. It takes measures for accident prevention and contains the damages in case of accidents and safety hazards during the production. This includes; Giving fire training, safety training. Maintaining hydrant points, hoses, and nozzles to make them always ready to use. Checking house keeping in plants. Regular maintenance of fire water pumps and tanks. Issuing personal protection equipments. Accident investigation in case of accidents, to find out reasons of occurrence and to take preventive measures. Conducting safety mock drills.

Personal protective equipment used in the company is; Gloves. Face masks. Respiration mask. Welding shields. Goggles. Earplugs. Safety shoes. Helmets. Skin protective ointments. Gas masks. Safety belt

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MATERIALS DEPARTMENT (2)

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(2)

MATERIALS DEPARTMENT

MATERIALS MANAGER

STORES

PURCHASES

STORES MANAGER

DEPUTY MANAGER (PRODUCTION)

INVENTORY AND INSPECTION

DEPUTY MANAGER (SALES)

SPO PO

DEPUTY MANAGER (IC&MI)

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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 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 Purchase indent: Indenter raises Material

procurement request (MPR) to the inventory section. If the material is not available, the form is sent to purchase department. 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.

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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 digit codes 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

[46]

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 TCC ABC 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.

[47]

MARKETING DEPARTMENT (3)

[48]

(3)

MARKETING DEPARTMENT

AGM Director of Finance

A G M (Marketing)

Manager (Sales)

Dep. Marketing Manager Asst. Sales Officer

Senior Assistant

Junior Assistant

[49]

Marketing department in TCC is product centered with separate personnel entrusted to each product. TCC is the only chlor-alkali company in Kerala. So firm has more or less monopolistic market in Kerala. 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.

The main functions of office section; Preparation of sales quotation, letters, amendments etc maintenance of sales officers register, books and other necessary information. Preparation of sales budget, sales plan, monthly allotment etc correspondence with parties, issue of sales officers and follow up of routine and regular matters. Preparation of sales orders, dispatch, and delivery notes etc. Upkeep of all files up to date.

The mains function of issue section; Preparation of schedule of dispatch and actual dispatch. Execution of sales offers. Advising parties about the dispatch effected.

[50]

THE MARKETING MIX:

Product
Products of TCC include Caustic soda, Caustic soda flakes, Chlorine, industries Hydrochloric served are Acid and Sodium Hypochlorite. soap, insecticides, The pharmaceutical,

chemicals, mineral processing, disinfectant, textile, rubber, water purification and petroleum. The only branded product is soda bleach and the brand name is EKO CLEAN.

Price
The Company has adopted a differential pricing policy. The price is fixed through negotiation for long term contracts. For small customers price is fixed from time to time.

PRICE LIST: PRODUCT PRICE PER TONN (RS) CAUSTIC SODA CAUSTIC SODA FLAKES LIQUID CHLORINE 25500 26500 9800

[51]

HCL ACID SODIUM HYPOCHLORITE

3000 4500

Pricing Policy
The Company has adopted a differential pricing policy. An open body named Alkali Manufacturers Association of India (AMAI) fixes selling price for a particular period. Price of the product is fixed by adding the production cost, excise duty, VAT and freight charges. Tenders are issued to the customers with a price quoted and if it turns to be the lowest bid and satisfies the customers, the sales are done. The major markets are Kerala, Karnataka, and Tamilnadu. Except Caustic soda all other products are sold in South India. Long term contracts are being entered with consumers. Price concessions are given to long distance customers, taking freight element into account. For transportation of the product, raw materials, and also all other logistics purpose, company have given contracts to outside agencies. The contract is placed for each material and that is done in an annual basis.

Place
Channels include direct selling to customers. For

Caustic soda, there are agencies outside Kerala for marketing. The entire marketing functions are done from company Headquarters at Udyogamandal and not by any marketing office outside company. All payments take place through State Bank of Travancore.

[52]

Promotion
the products are industrial products. TCC is only

All

manufacturer of the Chemical product in the public sector. But it lacks a good promotion policy to withstand competition from private sector. The customers are aware of the existence of the company and when and how to get the product. Hence there are not much promotional activities. Marketing factors is price, which depends on the national and international price. The company does advertise in some academic and trade journals like Chemical Magazine etc. The promotional activities are done also through company website (www.tcckerala.com).

The competitors
There are about 40 companies in India, which are producing the same kind of product that of TCC. In the 40 companies 12 companies are in south India. All chemical industries are in private sector except TCC. Chemfab Alkalies Ltd.Pondichery. KEM Pab alkalies Ltd. Andhra sugars Ltd. D C W.Ltd Mettoor. Kothari Petrochemicals Ltd. Tamilnadu Petro Products Ltd. SPIL, Chennai. Sree Royalseema Alkalies and Allied Chemicals. AndhraPradesh. Chemplast, Metoor. Chemfab. Pondichery. BILT, Karnataka.

[53]

Sirpur Paper Mills, Andhra Pradesh.

Major customers of TCC are:

Hindustan Lever Limited-Cochin, Kerala
Indian Rare Earths Ltd-Udyogamandal, Kerala Tamil Nadu Paper Mills Limited Pugalur, Tamilnadu Pigments India Ltd., Chalakudy, Kerala Indian Oil Corporation, Ernakulam, Kerala Mysore paper Mills Ltd., Bhadravathy, Karnataka Fertilizers & Chemicals Travancore Ltd., Ernakulam, Kerala Travancore Titanium Products Ltd., Trivandrum, Kerala Kerala Minerals & Metals Ltd., Kollam, Kerala Hindustan Zinc Ltd (All Units) Hindalco . Ltd -Ernakulam, Kerala Hindustan Newsprint Limited, Kottayam, Kerala Kerala Chemicals & Proteins Ltd., Cochin , Kerala Hindustan Organic Chemicals Ltd., Ambalamugal, Kerala Kerala Water Authority Trivandrum, Kerala Hindustan Insecticides Ltd., Udyogamandal, Kerala Cochin Minerals & Rutiles Ltd., Aluva, Kerala National Thermal Power Corporation (All Units) Binani Zinc Limited, Edayar, Kerala Steel Authority of India Limited, (All Units) Karnataka Soaps & Detergents, Mysore, Karnataka Nuclear Fuel Corporation Hyderabad, Andra Pradesh Kudramukh Iron Ore Ltd., Mangalore, Karnataka GTN Textiles Hyderabad, Andra Pradesh

Marketing strategy of TCC

[54]

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.

Market Analysis:
During the year 2005-2006, the company could achieve a record 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.

Activities of Marketing Department:

Whenever

company places advertisement requiring chemicals like Caustic soda, Lye flakes, with the specification for the chemicals payment terms, quantity required, validity period, the companies ready to supply (like TCC) will send tenders to the required company. This is also known as tender document. In a tender document mainly 2 facts are specified. a) Technical bid: This means specifications about the product, quality aspect of product, how much quantity can be given within a period as specified by the customer company. These terms are well explained in the technical bid.

b) Price bid:

[55]

This is the part of tender document, which specifies the basic prices of the company products. The document rate is given for bulk purchasers, payment terms are also explained. Along with this offer is placed to the customer company which will be attracted with Earnest Money Deposit (EMD). This deposit is for the purpose of assuring the customer company that if they accept the TCC offer, certainly the product will be supplied to the customer. The deposit will be refunded by the customer company after the purchase is made. The EMD is only attached in case of bulk purchases. After accepting the offer placed by TCC the customer company will place a purchase order. The purchase order explains the details of the product, quantity, basic price etc. Sales order is placed and will be verified by Deputy Marketing Manager (DMM). He makes arrangement in respect of supplying the product to the customer. The company is also supplying 2 3 tones of quantity to small customers. The acceptance offer is usually by selecting lowest price from the collected tenders, if price of TCC is higher than any other parties those parties will be called upon and negotiations will be done so as to bring the price lower. If price is not lowered the offer will be rejected.

[56]

TECHNICAL DEPARTMENT (4)

(4) TECHNICAL DEPARTMENT:

There are two main sections in this department

[57]

Safety and pollution control Technical service section

Technical service section:

Reports are maintained on daily as well as monthly basis and internal as well as external basis. The reports are sent to all other departments

Daily report: Daily production calculation Overtime reporting Daily production step Daily production report presentation Daily caustic soda pumping reports

Monthly internal report Production process report Material balance chlorine utilization raw salt analysis material consumption overtime monthly statement

Monthly external report: report to various government department and other agencies

[58]

The main functions of this section are production calculation and reporting production stock comparison

Production calculation is done for t he entire 24 hour after receiving the data from the plants.

Safety Section:

The safety policy of the company states that

TCC is committed to provide every one of its employees and the related public an accident-free and healthy environment in its efforts to manufacture high quality products at competitive prices. The company will comply with all statutory requirements in this regard.

The company will provide a work environment in which identified hazards are controlled, if elimination is not feasible and will provide personal protective equipments wherever necessary.

Accident prevention is the direct responsibility of the Line Management and will be an important criterion for performance appraisal. Line Management will ensure that all safety measures are incorporated in the operating and maintenance procedures as well as in any process technology changes in the plant/infrastructure.

Consideration of health and safety will be given proper weightage in selection and deployment of the personnel.

[59]

The company will ensure that health and safety aspects are given due consideration in decision regarding purchase of plant equipments, machinery and materials.

Every employee of the company shall perform his/her job adopting Safe and proper work methods and using appropriate Safety equipments understanding that their career advancement is linked with SAFE performance.

Contractors, sub-contract workers, transporters and visitors entering the factory shall be required to observe health and safety practices of the company in all their activities.

All contract jobs will be carried only through the laid down procedures with appropriate supervision. The company will carry out safety audits, risk assessment studies, emergency mock drills, periodic assessment of health of its employees as well as status of environment, and implement remedial measures.

Employee, consumer and public awareness where necessary, will be imparted with the required education, training and retraining on Safety and health aspects related to the process and products.

The company will include a resume of its health and Safety performance in its annual Reports.

Safety Functions: Safety induction: All new employees are given safety induction program. This includes a general awareness about the factory hazards and precautions use of PPE, use of fire extinguishers general rules etc. Practical training on the PPE is also given.

[60]

Safety inspection and auditing: Inspection of the plant and facilities are done on a

regular basis to identify substandard condition and practices. The concerned authorities are informed about the inspection findings for taking necessary corrective action. Safety audits are conducted as per the schedules and results intimated to the management Safety training Use of PPE, use of fire extinguishers and other safety apparatus are conducted by the safety department for the company employees. Further training on the safe handling of Chlorine is conducted customers, agents, transporters etc. Safety awareness program:

Displays of posters leaf lets, preparing news letters, circulating salient articles from safety publications etc are done as a party of National safety day for participating and spreading the message of safety among the employees.

[61]

PERSONNEL DEPARTMENT (5)

[62]

(5) PERSONNEL DEPARTMENT

MD

DF

AGM(HR)

Medical officer

Manager (HRD)

Chief security officer

Public relation

Manager (personn el & welfare

Dy. manager canteen

Ass. Personnel officer

[63]

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. 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.

Educational Allowances

Up to 15 years services 80 Rs per month More than 15years service Rs 100 per month.

[64]

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)

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 23 In shift 12 8 shift - Rs 10

Gratuity Gratuity is paid as per the Gratuity Act Bonus

[65]

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.

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 22/23 days in a payroll month 11/2 days wage extra. If attended normal duty for a minimum period of 20/21 days in a payroll month 1 days wage extra Incentives employees. Uniform Cloth for stitching uniform will be issued every year, as follows: Permanent Workman 2 pants and 3 shirts, terry cotton Permanent Female Employee 2 sarees and 3 Blouse pieces terry cotton. A zero accident incentive is given to

[66]

Permanent Security 2 pants and 3 shirts, terry cotton. Permanent Attendees 2 pants and 3 white shirts, terry cotton.

Washing Allowance Workmen who are given uniforms will be paid Rs 50 per month.

Foot wears All permanent workmen will be provided with a pair of safety shoes every year .All female permanent workers will be given a footwear allowance of Rs 150/-per year

Trade Unions There is no labor unrest in the company for the past few years. An atmosphere of trust and mutual understanding is developed between Management and labor Union.

There are 3 main recognized Unions and they are as follows:

1) TCC Employees Association Independent Union 2) TCC Employees Union 3) TCC Thozilalee Union The unrecognized unions are - Affiliated to INTUC - Independent Union

1) TCC staff and Workers Association Affiliated to AITUC 2) BMS

Methods of Training

[67]

Both on the job and off the job training methods are used.

Grievance Redressal 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 exsists a good employee - employer relationship. Grievance Redressal Committee consist of an experienced and efficient team of personnel department. Morale Level- the employee morale level is very good. Welfare Activities are of 2 types Statutory Non statutory

Statutory welfare activities are as follows: Canteen Crches, Drinking water, Storing and Sitting, Bathroom, Rest Shed, Welfare Officer, Gratuity, Ambulance, Dispensary, Medical Officer, Washing Allowance, and Bonus under Bonus Act etc. Non Statutory welfare measures are Recreation Club,

Transportation subsidiary, Nursery School, Leave for part time course, Library quarters, Accident benefits etc. Various other incentives schemes: Higher Educational Loans with maximum limit Rs 5000 per year. Scooter Allowances 112.50 per month. Bus Subsidy 75% of actual fare (Perquisites and Amenities)

[68]

Tool Allowance Rs 75 per month. Special Allowance. Higher Education Allowance Acting Allowance (Perquisites and Amenities) Privileges Leave (P.L). PL can be accumulated to 300 days and sick leaves up to 120 days. HRA (House Rent Allowance) at the rate of 10% of the basic pay (Perquisites or Amenities)

HRD/ TRAINING DEPARTMENT (6)

[69]

(6)

HRD/ TRAINING DEPARTMENT

Functions of the training department a) Identifying training needs b) Imparting the required training c) Maintaining training records. Scope 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. Training needs for the years are identified and recorded by the department head. The details are handed over to the training department by respective Necessary department training head. Training are department by does compilation of the identified training needs of the employees. programs arranged training

[70]

department to cater the identified training needs of the employees. Training internal department faculty or organizes engaging training faculty programs from using

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 feed back 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 centre of the company and outside

[71]

institutes depending upon the needs identified by the head of the department. Workers Participation in Management TCC encourages of the its workers to take part are in the

management

company.

The

workers

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 e) Provident fund trust f) Tri party committee g) Complaint committee relating to sexual harassment against women.

[72]

FINANCE DEPARTMENT (7)

BOD

DIRECTOR FINANCE

Finance controller is having the overall responsibility of DFM CONFIDENCE AND department which MARKETING the the finance DFM COSTING DFM CASH DFM includes ESTABLISHMENT coordination of audit, Board meetings and company taxation. Deputy Finance Controller co-ordinates the function of bill
SENIOR passing, establishment section, Debt collection, cash and bank. ACCOUNTING OFFICER A O

The internal audit function is carried out in the company by

A the internal audit section headed by the Chartered Accountant. A Regular reports are given to the department heads for taking O
E

corrective actions where necessary, which is submitted to the M.D. O

A The company has an effective budgetary control system. The
S T

budgets are reviewed and deviations analyzed and necessary O corrective action is initiated. Important variations relating to raw E
B L I S A

B I

C A S

O G A

O P F

D P

L L

[73]

materials, furnace oil, electricity etc are analyzed and furnished to various levels of management for are analyzed and furnished to various levels of management for corrective actions. The key budget factor is the power availability which is estimated and a rough picture of anticipated power shortages is drawn up. The main function of bill section is passing of bills, which is done after checking quotation, order and products received/ work achieved. Bills are passed after seeing that the material received is in conformity with the purchase order. The finance department in TCC handles the Management Information System (MIS).

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 well developed 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

[74]

Senior Accounting Officer confidential is reporting to DFM. Preparation of Balance Sheet is done in the general accounts section. TCC has an exclusive PF Trust for their employees. Chairman of P.F Trust is F.C Company give money to the trust. Trust invests this properly. Retirement benefit issued from here itself. The companys liability towards gratuity to employees is covered by a Group gratuity scheme with the LIC of India.

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 net realizable value, which ever is lower. By

works cost or

products are valued at net sales realization during the year. b. Raw materials, Mercury, packaging materials, fuel oil, stores and spares are valued at weighted average cost c. Tools and equipments are shown at revalued cost 4. All fixed assets are carried at cost less depreciation. Interest on loan during assets. 5. Depreciation a) For plant and machinery depreciation is calculate don a membrane, whose life is the period is added to the cost of fixed

straight line basis specified in schedule XIV to the companys act, except for the only 4 years.

[75]

b)

For buildings, service equipment, furniture, fixtures, office equipments, 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.

[76]

ENGINEERING DEPARTMENT (8)

(8) ENGINEERING DEPARTMENT

[77]

CHIEF ENGINEER

DEPUTY MANAGER ENGINEERING SENIOR DRAFTSMAN

DRAFTSMAN

The engineering department has been divided into four departments:

A) ELECTRICAL DEPARTMENT. B) MECHANICAL DEPARTMENT. C) INSTRUMENTATION DEPARTMENT. D) CIVIL DEPARTMENT

ELECTRICAL DEPARTMENT

[78]

There are two functions for this department: A) OPERATIONS B) MAINTENANCE

Operations:
Electrical supply is received from Kerala state electricity board (KSEB) through substations. DC (Direct Current) is needed for electrolysis and AC (Alternating Current) is converted into DC in rectifier plants. AC is used for auxiliary purpose. The following are the functions of the operational section A) Ensuring uninterrupted Power supply B) Man management

Maintenance:
Section is headed by a Chief engineer. In planning and implementing on engineering works the section also provides assistance to project development of new project.

MACHANICAL DEPARTMENT
Mechanical section found to be 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 within the organization. Objectives To ensure all equipment engaged in production are in good condition. To cut down time of critical equipment.

[79]

To reduce cost due to inefficiency in equipment handling

The functional setup of maintenance department includes: A) Electrical maintenance B) Electrical utility pumping water Air conditioner maintenance, plant lighting, motor for

C) High tension Maintenance of high tension equipments

INSTRUMENTATION DEPARTMENT

Instrumentation department

is

section

that

comes

under

engineering

Main functions of instrumentation department are : Plant processing operation & Control of plant and equipment Keeping record for it The maintenance or up keep of equipments

CIVIL DEPARTMENT

Civil section is an independent department headed by chief engineer. The main role of this section is the construction of the building and other premises of the company. It is also engaged with the social task to ensure the smooth flow of industrial activities.

[80]

The main functions of civil department are Maintenance of existing building. Painting and insulation.

Tender issue for civil works.

PROJECTS DEPARTMENT (9)

[81]

9) PROJECTS DEPARTMENT

GENERAL MANAGER

MANAGER PROJECTS

CHIEF ENGINEER PROJECTS

DEPUTY MANAGER PROJECTS

The main function of the project department is the execution of new projects for the company. It is an independent unit with a different function. Their main functions is to prepare feasibility and to invite tenders for execution of new projects

[82]

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 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 sod 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.

[83]

The company has a proposal to transport raw material and products through barges with the support of inland water authority of India. The total capital cost is estimated to be Rs.188.62lakhs.

[84]

SWOT ANALYSIS

STRENGTH
The company is located at the centre of the industrial belt where maximum consumption of Chlor-alkali products takes place. TCC is the only Chlor-alkali unit in the state. So it has the advantage in the pricing policy. It means that they can follow a flexible pricing policy. Products of TCC are basic chemicals and are considered to be building blocks of the chemical industry. TCC is the pioneer in the Chlor-alkali market and has created reliability and credibility among its consumers. It has good strength of skilled work force, educated staff and professionally qualified managers. Company has a very good track record of physical and financial performance in the past.

[85]

Company has excellent infrastructure facilities including nearness to national highways, railway lines, and seaport and airport facilities.

Natural resources like water are available as it is situated in the banks of river Periyar.

WEAKNESS:
Company has surplus manpower that is around 842

employees. Hence employee cost is high when compared to industry standards. Logistics is difficult as the raw materials are to be bought from distant places. Major markets are distantly located. So unit suffers increased transportation costs. KSEB enjoys monopoly in supplying power in the state and the staff size has undergone many fold increase in a short span of time. Financial options are limited as the company is under the State government. Delay in decision making is always there, especially in cases related to product diversification and expansion of production capacity.

Opportunities:
New project of synthetic rutile plant: Rutile companies are reaping huge profits in the state due to the availability of raw material, within state. There is a high price in the international market for rutile and related products. Proposal for a Hydel project will benefit TCC and the power so obtained can be utilized for running of the plants of TCC thus reducing the cost incurred on electricity.

[86] Economic development of the country may result in a higher demand for products

especially chlorine in near future.

Threats:
Hike in price of electricity. The import duty policy of central government is not fair and caused periodic fluctuations in the price of the companys product. The industry is in matured phase of life cycle, hence there is a low prospect for growth and might be on a decline path if substitutes are not found out. The infrastructure of the company is obsolete compared to others.

CONCLUSION
TCC Ltd. is a state owned undertaking engaged in manufacture of basic chemicals like Caustic soda, Hydrochloric acid, Chlorine, Sodium hypochlorite etc. These are required by various industries within and outside the state. TCCs products have national reputation for quality and the company gives high

[87]

priority to customer satisfaction. It is an inorganic chemical company. TCC takes vital steps at the right time to make innovations in technological up gradations as well as organizational improvements, which had helped it to face problems quite efficiently. Upton 1995-1996, company had recorded a steady growth in production as well as in sales. After that period even though the sales remain on an average, the company could not make any profits. This was due to the implementation of Membrane Cell Technology in place of Mercury cell technology. The higher electric charges compared with other states also affected the profits 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 the organization, the capacity of production is increasing and the company is moving into more profitable stages. The 25 days I spent at TCC had created a concrete impression in the development of my career.

FINDINGS:

[88]

The major customers of TCC are pharmaceuticals companies, soap industries, insecticides and pesticides industries, paper industries and rayon industries. The major competitors are SPIC and Chemplast. Location preference, reference and quality are the major criteria for selecting manufacturer. Company follows management by convenience and not management by objectives. Pricing policy of TCC is an average, according to the industrial standards. TCC have a flexible credit policy, they give credit facility up to 30-45 days and they are getting credit of 60 days from suppliers. The customers have reported no rejection of TCC product, which shows the product satisfaction. In case of lead time, it was noted that order processing took too much time due to lot of work. The strength of TCC is the quality of their products, services and the delivery. No strikes have been reported for the last 10 years, it shows the relationship of workers and management as better. The company is depending heavily on electricity and around 60% of their product price is for this. New technology of Membrane cell has the advantage of pollution free environment and also it brings about 30% reductions in electric power requirements. No major environment pollution has been reported for the past 50 years of operations.

Suggestion:

[89]

The company must try to activate the R & D cell in order to have new inventions in this field. 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 motivation to the employees. For the smooth functioning they must invest a reasonable amount of working capital. The company shall take necessary actions to maintain the ratios at the standard level. Improve the first aid facilities by providing free medicines and treatments. TCC should try necessary steps to increase the net profits. TCC should persuade workers to use safety equipments.

MY EXPERIENCE IN THE ORGANISATION

It was a very good experience for me to do an organisation study in TCC. Through this study I got a clear idea about the functioning of organisation. I got great support from the heads of the organisation. Information about the board of directors, companys history and growth, vision, mission objectives, future plans etc were clearly defined by them. If I have any doubts I can contact them any time when needed. The most important thing I understood is that they concentrate more on security, safety and cost-effectiveness and customer satisfaction. And this one month project helped me a lot to know that how successfully they MOVE THEIR BUSINESS FORWARD.

BIBLIOGRAPHY:

[90]

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 Limited. www. tcckerala.com
www.moneycontrol.com

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APPENDI X

COMMON ABBRIVIATIONS

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GM: General Manager DGM: Deputy General Manager AOGA: Accounts Officer General Account AOPF: Accounts Officer Provident Fund AOC: Accounts Officer Cash MM: Marketing Manager DM (P): Deputy Manager Production DM (S): Deputy Manager Stores NaOH: Caustic Soda Cl2: Chlorine HCl: Hydrochloric Acid PM: Personnel Manager CO: Catering Officer CSO: Chief Security Officer M Ds: Manager Dispensary SI: Security Inspector ASI: Assistant Security Inspector DGMT: Deputy General Manager Technical DGMC: Deputy General Manager Commercial MHRD: Manager Human Resource Development MTS: Manager Technical Services CE: Chief Engineer CE TS: Chief Engineer Technical Service CEM: Chief Engineer Mechanical ME: Mechanical Engineer DERT: Deputy Engineer Technical SE: Sub Engineer MPJ: Manager Projects MOP: Manager Operations

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EGM: Energy Manager MEI: Manager Electrical and Instrumentation MS: Manager Stores PLM: Plant Manager DMPR: Deputy Manager Production DFC: Deputy Finance Controller CE ( CP & ISO): Chief Engineer Corporate Planning and ISO

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