Chintan Final Project

7/31/2019 Chintan Final Project

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00CHAPTER NO. 1

(1) INTRODUCTION OF THE SUBJECT

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(2) Introduction of Aarti Industries Limited

Aarti was started in the year 1984.The first unit of AARTI group, ALCHEMIE

LABORATORIES, commenced commercial production of DIMETHYL SULPHATE

(DMS) in the year 1975. Today, AARTI has acquired world-class expertise in the

development and manufacturing of basic bulk chemicals, dyes & pigment intermediates,

pharmaceuticals & agrochemicals along with their intermediates, rubber chemicals,

surfactant intermediates and specialty chemicals. AARTI is amongst the largest

producers of Benzene based basic and intermediate chemicals in India.

AARTI has attained a total turnover of US $ 189 million in the year April 2003 - March

2004 with flagship companies AARTI INDUSTRIES LIMITED (AIL) & AARTI

DRUGS LIMITED (ADL) listed on Stock Exchanges. AARTI has a Subsidiary AARTI

HEALTHCARE LIMITED (AHCL), which is engaged in manufacturing of Active

pharma ingredients ranging from Ace Inhibitors, Bronchodilators to Steroids.

Aarti has manufacturing sites at Gujarat and Maharashtra. In Gujarat mainly at Vapi,

Sarigam, and Jhagadia where us in Maharashtra it is located in Tarapur, and Dombivli.

The Aarti company mainly chemicals manufacturing the basic bulk dyes and pigment

intermediates, Pharmaceuticals and agro-chemicals along with their intermediates and

specialty chemicals. The Aarti Company is the world class expertise in manufacturing of

their products. Aarti is one of largest producers of the benzene.

AARTI has the privilege of catering to the requirements of leading manufacturers of

dyes, pigments, pharmaceuticals, agrochemicals and rubber chemicals in countries such

as USA, UK, Germany, Spain, Italy, Switzerland, Belgium, Japan, Korea, China Russia,

etc. Aarti also has representatives in USA & a subsidiary company in UK to provide

better services to its Export Customer.

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(3) History of Aarti Industries Limited

Aarti Industries Limited (AIL) was established in 1984 as a small venture by group of

technocrats. It is a public limited company. The promoter was Mr. Chandrakant over the

last more than 20 years it has evolved to it presents stature crossing several milestones.

In the initial stage the company was producing DMS products. In 1992, they expanded

their company and started producing pharmacy products. During this evolution period

the Aarti industries Limited had set up a member of expansion and diversification project

funded by a public issue in 1992, institutional assistance and from internal accruals.

We can see that the period from when the company had started in 1984 and now

the period of 2006 it had undergone the vast changes many new machines had been

recently built, innovation and expansion is done to create the demand and maintain the

quality. So we can see that this company is at stage where it can find many company

lagging behind.

(4) Mission & Vision

Mission

i. To constantly strive to set up and maintain global size plant facilities.

ii. To become customer-driven company by providing customized solutions and

service to meet changing customer requirements.

iii. To maintain consistent quality and timely delivery at competitive prices.

iv. To use best cost effective manufacturing methods supported by proven, eco-

friendly and safe technologies.

v. Commitment to growth by Research and new product developments and

progressive increase in Exports.

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vi. Continuous focus on people to encourage and nurture winning organizational

culture.

vii. To set up facilities with USFDA and other overseas approvals.

viii. To meet the challenges of competition by dynamic management drive.

Vision

i. To retain leadership in domestic market.

ii. To attain significant presence in global market.

iii. To become supplier of choice to leading Customers.

iv. To be always committed to the employees, shareholders and the society at large.

(5) Goal

AARTI group is strategically placed to exploit growth opportunities in the Chemical

Industry. In view of its technical expertise and broad base satisfied clientele in India and

abroad, AARTI is looking for global partners and strategic alliances in areas of mutual

interest viz.

Development of International markets for AARTI's products.

Toll manufacturing.

Transfer of Technology / Technical know-how.

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(6) Corporate Information

Name of the Company : Aarti Industries limited

Type of Company : Public Limited

Established Year : 1984

Size of Company : Large Scale

Plants : 1. Plot no. 801,801/23,

802,803/1-2-3, GIDC,

Phase 3, Vapi-396195

2. Plot no. 902, GIDC ESTATE,

PHASE 2, VAPI-396195,

DIST: VALSAD, GUJARAT.

3. Plot no. 752-753-754

SARIGAM, TAL: UMARGOAN,

DIST: VALSAD, GUJARAT.

4. Plot no.758/1, 758/2,

GIDC ESTATE JHAGADIA,

DIST: BHARUCH, GUJARAT5. Plot no. K-18, MIDC,

TARAPUR,

DIST: THANE, MAHARASHTRA.

6. Plot no. E-50, MIDC,

TARAPUR,

DIST: THANE,

REGISTERED OFFICE : CITI BANK N. A,

Plot no.801, 801/23

GIDC ESTATE, PHASE-3,

VAPI-396195, VALSAD

CORPORATE OFFICE : Udyog Kshetra,

2nd floor, L.B.S.Marg,

Mulund-Goregaon Link Road,

Mulund (W), Mumbai-400 080

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BOARD OF DIRECTORS : Chandrakant V. Gogri (Chairman)

Rajendra V. Gogri (Vice Chairman &

Managing Director)

Shantilal T. Shah (Vice Chairman)

INDIPENDENT DIRECTORS: Ramdas M. Gandhi

Laxmichand K. Jain

Vijay H. Patil

Haresh K. Chheda

WHOLE TIME DIRECTORS: Parimal H. Desai

Manoj M. Chheda

Rashesh C. Gogri

Hetal Gogri Gala

Kirit R. Mehta

COMPANY SECRETARY : Mona Patel

AUDITORS : M/S, Parikh Joshi & Kothare,

49/2341, M.H.B. Colony,

Gandhi Nagar, Bandra (East),

Mumbai-400051

REGISTRAR & : Sharepro Services (India) Pvt. Ltd.

TRANSFER AGENT Satam Estate, 3rd Floor,

Above Bank of Baroda,

Cardinal Gracious Road, Chakala,

Andheri (E), Mumbai-400099.

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Phone No.:677300351 / 352 / 353

Registered Office : Plot Nos. 801, 801/23,

GIDC Estate, Phase III

Vapi 396 195,

Dist. Valsad, Gujarat.

Corporate Office : Udyog Kshetra,

2nd Floor, L.B.S. Marg,

Mulund Goregaon Link Road,

Mulund (W), Mumbai 400080.

Bankers : Bank of Baroda

Union Bank of India

State Bank of India

ANB Amro Bank

Standard Chartered Bank

HDFC Bank Ltd.

Export-Import Bank of India

IDBI Bank N.A.

UTI Bank Ltd.

(7) Management of Aarti Industries Limited

There are three levels of the Management.

1) Top Level

2) Middle Level

3) Bottom Level

1. Top Level :1.1. General Manager

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1.2. Assistant General Manager

1.3. Deputy General Manager

1.4. Senior Manager

1.5. Manager

2. Middle Level :

2.1. Senior Deputy Manager

2.2. Assistant Deputy Manager

2.3. Senior Engineer

2.4. Junior Engineer

2.5. Senior Engineer Officers

2.6. Senior Executives

2.7. Junior Executives

3. Bottom Level :

3.1. Assistants

3.2. Operators

3.3. Technicians

3.4. Supervisors

3.5. Helpers

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Human Resources department

(1) Introduction

Human Resource Department is that of management which is related with management

of planning organizing, directing and controlling of the procurement, development,

compensation, integration, maintenance and separations of human resources to the end

that individual, organization and sociality objectives are accomplished, it s objective is

the maintenance of those relationship on the basis of which organization can get

maximum personal contribution from employees.

The human resource is important to any labor intensive or capital intensive industries. So

they should place an important position to an industry. The Aarti Industries Limited

Company regular undertakes the training activities and other HR initiatives. The

company has also continued its scheme for assistance to employees with a view to ensure

that their basic housing needs are fulfilled. The company has been continuously focusing.

On people and processes those to encourage and realize their full potential through

continuous on job learning and through other HRD initiatives coordinal and harmonious

relation with employees continued to prevail through the year under review.

Human resource is an asset for any organization for the success of any organization

human resource play an important role. If any companys human resource is not a

standard or not efficient then it affects the performance of an organization.

Human resource play a vital role in each and every department whether it is finance

department, marketing department, production/operation department, R & D department

or any other. The manpower must be efficiently

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(2) Function of Human Resource Management

The following are main function of human resource manger:

Application and control of company rules and organization policy.

Recruitment of manpower intended by HOD and approved by management

and top head.

Employee and trainees induction programmed arrangement.

Development of trainees by training and approvals

Transport arrangement for required by employees, guests & customer.

Booking and reservation as required by employees / guests.

Safety of company material and employees.

Maintenance of first aid material.

Canteen administration

Assistance of meeting and conference

Company occasions arrangements like annual day, Picnic.

Labor welfare activities as decided by management.

Arrangement of uniform, shoes, seasonal wear, safety equipment.

House keeping of company premises.

Casual labor arrangement

Building maintenance and office maintenance

Public relation activities.

Salary wages and perks administration works and recorded keeping.

Telecom related activities

Appraisal assistant of employee for increments , training, promotions

Factory Act related activities

Stationary planning and arrangement.

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(3) General Rules and Regulation

Employees strictly follow their rule and regulation.

Every employee should wear uniform, as well as safety shoes, apron and safety

helmet.

During working hours the employer should not wonder here there without any

reason.

Employee should not bring any unwanted material like match or cigarette, alcohol,

tobacco, etc. While coming in and going out every employee should make entry by means of

purchasing card

Employee should always wear his identity card with him.

Employee should not remain absent without prior information to his department head

and p & A. Dept. unless as until the reason of absent is sickness.

Facilities provided to the workers:

Provide opportunities for workers to talk with each other while they are working.

Avoid lay out or job assignment which require work in isolation.

Change the work method so as to reduce possibilities for direct handling of

hazardous materials.

Ensure the availability of first aid equipment and aid qualified first aider.

Conduct regular healthy examination of workers and provide ready access to

treatment by a physician or a nurse.

(4) Recruitment

Man power recruitment is one of the most important and difficult part of the

organization. If any mistake is done in the recruitment process than it will be directly

affects the result of the organization. Aarti is producing some of the hazardous chemical

so for them man power recruitment process is through job.

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Recruitment is the generating of the application of applicants for specific position

through three common sources i.e. advertisement, state employee exchange agencies or a

private employment.

According to Aarti industries formulating a selection policy, due consideration should be

given to organizational requirement as well as technical and professional dimension of

selection procedure adopted by Aarti Industry is tailor made to meet its particular needs.

The thoroughness of the procedure depends upon three factors.

1. Nature of selection.

2. Policy of the company.

3. The length of the probability period or trial period.

The human resource is important to any labor intensive or capital intensive industries. So

they should place an important position to industries. The AIL company regular

undertakes the training activities and other HR initiatives. The company has also

continued their schemes for assistance to employees with a view to ensure that there

basic housing needs are fulfilled. The company has been continuously focusing. On

people and processes those to encourage and realize their full potential through

continuous on job learning and through other HRD initiative cordial and harmonious

relation with employee continued to prevail through the year under review.

HR is asset for any organization for the success of any organization. HR plays an

important role. If any companys HR is not a standard or not efficient then it affects the

performance of an organization. HR plays a vital role in each and every department

whether it is finance department, marketing department, production/operation

department, R&D department or any other. The manpower must be efficiently used.

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Source of recruitment

1) Internal sources

a) Retired or retrenched employees who want to return back to company may be

rehired.

b) Dependents and relative of deceased or disabled employees.

2) External sources

a) Advertisement

b) Educational institution

c) Labor contractors

d) Recruitment agencies.

Recruitment Process

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Chemist & engineers

NEWSPAPER APPLICATION

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NEWSPAPER

APPLICATION

RECEIVINGAPPLICATION

SORTING

OUT

APPLICATION

INTERVIEW

FINALIZE

II INTERVIEW

OFFER LETTER

JOINING THE

ORGANIZATION

APPOINTMENT

LETTER

WRITTEN TEST

SORT TEST

INTERVIEW

APPOINTMENT

LETTER

OFFER LETTER

JOINING THE

ORGANIZATION


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Very firstly the AIL gives the advertisement in the newspaper so that the applicants

are attracted towards the advertisement and they apply in the company for the required

post. In that newspaper advertisement the AIL gives the required qualification for the

post. So that the applicants who are that qualified and capable only they apply for the

job.

RECEIVING APPLICATION

After the advertisement placed in the newspapers the AIL receives the application

forms of those candidates who are willing for the job.

SORTING OUT APPLICATIONS

After the applications being received by the AIL, they do the work of sorting out

the applications. A panel is selected and those people in the panel do the work of sorting

the received applications and then according to those panel members the candidates who

are capable to go a step further i.e. for the interview are being selecte.

Before the interview the AIL goes for a test for the candidates which is a written

test in which the candidates are given a questionnaire in which the AIL ask few questions

which has to be answered in a written form. After the test the answers are gone through

and then the candidates whose answers are found to be interesting are further being

called out for the interview.

INTERVIEW

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Then the interview is held. Some employees of the AIL from the executive level

are being selected so that those people carry out the interview without any biasness. In

the interview the employees of the AIL carries on with the question answer sessions. By

this interview the panel gets a clear picture of which people are competent for the job and

can go for the further process of the recruitment.

FINALIZE

Finally the applicant who is found to be competent enough by the panel is being

finalized after the finalization the employee is asked to go under a physical checkup

under the doctors and submit the report in the AIL.

OFFER OR APPOINTMENT LETTER

After all the procedures are completed and a clear chit given by the doctors the

employees are being given an offer or an appointment letter to join the organization the

candidate.

(5) Selection

Selection is a process of choosing the most suitable persons out of all the applicants. It is

a process of matching the qualification of the applicants with that of the job

requirements. It is a process of weeding out the unsuitable candidates and finally

identifying the most suitable candidate. The last step of recruitment is selection as

recruitment involves identifying the sources of manpower and stimulating them to apply

for jobs whereas selection is process of selection the best out of the available

alternatives.

Selection process

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APPLICATION FORM

The application form is given to the candidates and that the candidates are asked to fill

them. The AIL is very much careful while going on with the selection process. The AIL

not only selects the people from the external source but also from the internal source.

INTERVIEW

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Application Form

Interview

Physical Examination

Reference

Final approval

Employment


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The AARTI INDUSTRIES LIMITED after the receiving of the application form from

the candidates the company goes for the interview. In the interview the AARTI

INDUSTRIES LIMITED top level management sees to it that the process is carried out

very properly and that the candidates are selected on the basis of their experience,

compatibility, competence, and qualifications. The AIL keeps in mind that the candidates

selected are experienced and that this is the most important criteria the AIL look at

before selecting any of the candidates for their company.

PHYSICAL EXAMINATION

The company after going on with the interview process some slot of candidates are

selected and also that the selected candidates are being asked to go for the physical

checkup as the physical checkup may help the AIL to know whether the candidates are

completely healthy or not. The candidates are asked to submit a report of their fitness in

the organization and then the further decisions are being taken by the organization. As

the physical checkup may help the AIL to avoid future problems.

REFERENCE CHECK

After the company carries out with the physical checkup of the selected employees, the

company cross checks the reference. For a company reference check is one of the

important criteria while selecting the candidate or while giving the employment to the

applicant.

FINAL APPROVAL

After the reference check is been completed the next step is to give approval to that

candidate who has completely satisfied the AARTI INDUSTRIES LIMITED

requirement of an employee.

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EMPLOYMENT

After the company has completed all their procedures now is the time to give the

employment to the candidates who are selected by the organization for their company.

(6) Remuneration

The remuneration that the AARTI INDUSTRIES LIMITED provides to each of the

employees is as follows

Salary

The Board of Directors is to be provided with the Salary of Rs.85, 000/- per month with

power to make an annual increment area under discussion to a maximum amount of Rs.1,

50,000/-per month in respect of salary and privilege up to 100% of salary.

Commission

In accumulation to the salary, the whole-time Directors of the AARTI INDUSTRIES

LIMITED shall also be entitled to be paid share in comprehensive commission calculated

at the rate of 1% of not profit of company computed under section 349 of the companies

act, 1956 payable to all company share of such commission shall be payable after the

annual accounts are adopted by the shareholders.

Perquisites

Apart from the salary and commission regularly paid, the whole-time Director shall bepermitted with the allowances:

o House rent allowance of Rs.15000/-per month.

o Bonus/ex-gratis: Rs.85000/-per annum.

o Compensation of Medical Expenses and/or Medical Insurance premiums for self

and family members as per companys policy.

o Personal Accident Insurance as Per Companys policy.

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The power of modifying any issue i.e. increase or decrease the amount of the salary or

any other and amount of perquisites to be provided by the company subject to a

maximum ceiling of 100% of the salary of the whole-time Director will be in the hand of

the Board of Directors, Whole-time Director shall also be entitled to following

perquisites which shall not include in the computation of the ceiling on remuneration

specified here in:

o Contribution to Provident fund. Contributions to super annulations fund or

annuity fund as per the rules of the company. These will not be included in the

computation of the ceiling on perquisites to the extent these either singly or put together

are not taxable under the Income Tax, 1961.

o Gratuity payable at rate not beyond half a months salary for each completed

year of service end.

o Encashment of leave at the end of the tenure.

o Provision of car for business of the company and telephone at residence shall

not be treated as perquisites. Use of car for personal purpose and personal long distance

calls on telephone shall be billed by the company.

The Salary Payments

Salary is usually paid in the first week of every month. Salary officer prepare covers with

the name and personal code No., of employees and the pay slip along with cash or

cheque as per grade.

Mode of payment in cash or Bank Transfer

Staff- Cash option or Bank Transfer

Officer- Usually Bank Transfer.

The structure of the wages and the salaries

The Human Resource Department also deals with wages and salary system. For the AIL

the happiness and contentment of the employees is the main concern, which is reflected

by the health wage and salary structure design in the company. The AARTI

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INDUSTRIES LIMITED pursues the minimum wage rate policy that is fixed by the

Government.

The salaries are also determined by the minimum wage rate policy which is set by the

government.

The Salary Diminution

The time office keeps the documentation of staff employees reporting at duty i.e. the

time of entering and the time of leaving. If employees report late on job, in that case the

company cuts the salary of that particular employee. The salary diminution rules as per

the minutes that are delayed by the employee in reporting themselves to their respectivedepartments are as follows:

o If late by 16 min to 35 min = Pay of half hrs

o If late by 35 min to 45 min = Pay of 45 min

o If late by 46 min to 60 min = Pay of 1 hrs

o If late by 2 hrs. to 3 hrs = Pay of half days

Enlightenment :-

o For the purpose of this agreement, Family means the spouse, the dependent

children and dependent parents, if any, of the whole-time Director.

o No sitting fee shall be payable to him for attending the meeting of the Board

of Directors or committee thereof.

o The other terms and condition of the agreement are such as are customarily

contained in agreement of similar nature.

The Compensation Packages

Basic + Dearness Allowance + other financial pays like cash canteen subsidies, washing

allowance, shift allowance, contribution of provident fund, gratuity, medical charges,

personal pays, inconvenience allowance, chemical, and hazardous allowance, etc.

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Shift and Working Hours

Timing at AARTI INDUSTRIES LIMITED the shifts are as follows:

General shift 8:00 am to 5:00 pm on all working days.

Lunch time is from 12:00pm to 1:00 pm and 1:00 pm to 2:00 pm.

There are total 3 shifts in the company i.e. morning, evening, and night.

(7) Wages and Salary Structure

This department also manages wages and salary system. The employees satisfaction is

the top priority of the company, which is reflected by the health wage and salary

structure design over here. The company follows the minimum wage rate policy, fixed

by the Govt.

Salary Determination

As per the minimum wage rate policy fixed by the government.

Reduction on Salary

The time office keeps the whole record of staff employees reporting to

and from duty. If employees come late on duty, company cut the salary.

Salary Reduction Rules

Late by 16 min to 35 min = Pay of half hrs

Late by 35 min to 45 min = Pay of 45 min

Late by 46 min to 60 min = Pay of 1 hrs

Late by 2 hrs. to 3 hrs = Pay of half days

Compensation Package

The compensation package includes basic + dearness allowance + other financial pays

like cash canteen subsidies, washing allowance, shift allowance, contribution of

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provident fund, gratuity, medical charges, personal pays, inconvenience allowance,

chemical, and hazardous allowance, etc.

Salary Payments

Salary is usually paid in the first week of every month. Salary officer prepare covers with

the name and personal code No., of employees and the pay slip along with cash or

cheque as per grade.

Mode of payment in cash or Bank Transfer

Staff- Cash option or Bank Transfer

Officer- Usually Bank Transfer.

Shift and Working Hours

Timing at Aarti Industries Limited for general shift are 8:00 am to 5:00 pm on all

working days. Lunch time is from 12:00pm to 1:00 pm and 1:00 pm to 2:00 pm. There

are total 3 shifts in the company i.e. morning, evening, and night. Production of this

company is going on continue around the clock.

Industrial Act. Applicable by Human Resource in our

organization

Factorys Act, 1948

Industrial dispute Act, 1947

Minimum Wages Act, 1948

Employees provident funds and miscellaneous Act, 1942

Payment of Bonus Act,1965

Payment of gratitude Act, 1972

Payment of wages Act, 1936

The Worker mens compensation Act,1923

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Apprentice Act.

The employees State Insurance Act, 1948

Contract Labor Act

Payment of Gujarat labor welfare fund

(8)Promotion and Transfer

Promotion

Aarti Industries Limited gives an up advancement to its employees with better pay,

position and work responsibility through promotion.

Promotion Policy

Aarti Industries Limited has adopted seniority as well as merit basis promotion policy.

The seniority of employee is regarded grade wise as per character residence period on the

particular grade. Also the various other merits are considered.

Promotion Criteria

Company gives promotion on the basis of seniority. Company has decided to give

promotion by the way of seniority 40% and out of 60%, 20% by the way of personal

interview and 40% by performance appraisal. Aarti Industries Limited has decided to

give promotion after every two years of period of time. If one not get satisfaction, at thatpost, he back to his position during the promotion period.

Transfer

A Transfer is a lateral shift causing movement of an employee from one job, section,

department shift, plant or position to another at some or another place with on charge of

salary status and responsibility, etc.

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Aarti Industries Limited follows a well define transfer policy to avoid any grievances

among the employees

Internal Transfer

Aarti Industries Limited internal transfer or department transfers are avoided as far as

possible.

Periodic Transfer

This type of transfer mainly carries in the marketing department. Whose regional areas

and sales department are located the brought out the country

According to policy marketing personal is transfer every four year, so they can come

back to the native state. Frequent transfer are avoided in company, they care of its

adverse effects.

(9) Leave Structure

Weekly off

If an employee is working in factory, i.e. different branch, the weekly off is on Sunday.

If an employee is working at head office (Mumbai), the weekly off is on Saturday and

Sunday.

Paid Holiday

The employees are entitled to take eight holidays in a year, which a declared by

management in the month of Jan.

Sick Leave

9 days sick leave are available per annum and credited on 1 st Jan every year during the

first year of employment, however this leave benefit will be available on pro-rate basis

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accumulated. Sick leave can be incase at the time of retirement and death only which can

be up to a maximum 72 days.

Casual Leave

9 days casual leave is available per annum and credited on 1 st Jan every year during the

first year of employment, however this leaves benefit will be available on pro-rate basis.

Since casual leave benefit cannot be carried to the next year at the end of the calendar

year the outstanding leave balance will automatically be encased and included in the

salary of the subsequent month.

Special Leave

The managing director under exceptional circumstances will have the discretion to grant

any additional leave, termed as special leave to indivisible. Such leave will be normally

being leave without pay, unless it is for the benefit of the company.

Privilege Leave

Privilege leave means which can be enjoyed only after completion of 240 working days

in calendar year.

15 PL enjoyed by workers and 25 PL by staff personnel that comprise of executive and

above.

PL cannot be combined with CL and cannot be taken for less than 3 days.

PL can be carry forwarded to the next year if employee has not availed the same and the

same is aggregated up to a limit of 35.

If the PL limit crosses 35 then the same can be encased.

Privilege leave is available at 30 days per calendar years, which is credited at 2.5 leave

per month for new management staff, at 2.5 leave per month ID credited after completion

of one month. A minimum period of not less than 5 days privilege leave should be

availed on every occasion, subject to a maximum of 3 installments. Privilege leave

should be approved 15 days in advance before providing on leave privilege leave is

computed from first leave and ends on the last day prior to his joining duty. Privilege

leave accumulated to 63 days will be encased at the time of superannuation

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treatment/dismissed from the service of the company or death during service. However

no leave will be encased during the period of employment.

Other Leaves

Maternity leave, leave after resignation compensatory leave unauthorized absence etc.

(10) Welfare Schemes

The schemes provided by AARTI INDUSTRIES LIMITED to their employees:

EDUCATION SCHEME

The Scheme decided by the AARTI INDUSTRIES LIMITED for the Scholarship

for education to the children of all their employees. This scheme is for those children

who have top score in their academic year. The scheme decides scholarship to the

children on the basis of their merit.

The applicability of the scheme is that the scheme will be applicable to all

employees of the company and their children studying in STD. 5th to 12th. This will be

free from any biasness from the Ataris side. And the deserving child will be getting the

benefits of the scholarship scheme.

After the submission of the concluding result by the children of their academic

year to the specified personnel of AARTI the decisions will be taken. The results will be

clustered as per the academic standard & the child who has topped will be sponsored for

next year school fees. The approximate budget amount already set and given to the child

will be Rs.32000 /-P.A. (Eight students every year x4000/-fees of each.)

VOLUNTARY RETIREMENT SCHEME

The Human Resource Department has also implemented a special type of policy for

the employees named as Voluntary Retirement scheme. Under this scheme, if an

employee is above 40 years of age and retire voluntary. He will be entitled to get the

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minimum 4 month salary excluding the benefit for the remaining years. And not many

but only two employees have gone for this scheme.

MILK SCHEME

At present AARTI INDUSTRIES LIMITED is giving milk coupons to all of its

employees except some service department that are excluded from the scheme. Along

with the milk coupons, AIL is giving tea allowance to all of its employees @ Rs.4/- per

attend.

FUNERAL SCHEME

The scheme is such that Rs. 2500/- to be given to all the employees on behalf of the

society and AARTI INDUSTRIES LIMITED on expiry of any of the dependent family

member. Company will compensate the amount to society. This is a small way to show

the gratitude and the companys concern towards the employee and their family.

WELFARE SCHEMES FOR EMPLOYEES

The AARTI INDUSTRIES LIMITED also provides some welfare schemes for

their employees so that they can help their employees in some or the other ways.

Med claim of employees,

Personal accident,

Employees D-link insurances scheme,

Group gratuity scheme,

School admission,

Housing admission,

Cycle loans,

L.I.C through salary.

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Marketing Department

(1) Structure of Marketing Department

29

THE MANAGING DIRECTOR

MARKETING

OFFICER

MARKETING

MANAGER

BOARD OF DIRECTORS

SALES

MENS

ADMINISTRATIV

E

OFFICER

ADVERTISING

& SALES

PROMOTION

SALES

MANAGER


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0

200

400

600

800

1000

1200

1400

Mar-06 Mar-07 Mar-08 Mar-09 Mar-10

Turn over in Rs cr.

The Competitor of Aarti Industries Limited

Alankar Industries

Anami Organics

Apurva chemical

Chirag Organics Pvt Ltd

Kamala Intermediates

Nascent Chemical Ind. Ltd

Micro Fine

Shanti Intermediates Pvt Ltd.

Vapi Acid & chemicals

Vapi Organic Chemical Pvt Ltd.

Panoli Intermediate

Deepak Fertilizer Ltd.

Industrial Solvent and Camical Ltd.

(3) The Suppliers of AIL

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There are many companies in the suppliers list of the AIL but some of them

companies that supply chemical raw materials to AIL are as follows:

NAME OF THE COMPANY PRODUCT

Standard Alkaline GSC Chlorine

Reliance Jamnagar & Hajare Benzene

Deepak nitrite nitric Acid

Udaipur rock phospect

Reliance Industries Ltd.

Bharat Petroleum Corporation Ltd.

National Organic Chemical Industries Ltd.

Standard Albalies Ltd.

National Rayon Corporation Ltd.

Grasim Industries.

Gujarat Narmada Valley Industries Corporation.

Deepak Nitrate ltd.

Transport ltd Dubai.

Helm Chemicals Germany

Universal Chemical Bahrain

(4) Marketing Objective of AIL

To make awareness of their product.

To become the leader of the manufacturing product.

To earn profit.

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To have maximum sales of their product with maximum customers.

Enhancing economic growth

Strengthening social responsibility

Intensifying environmental commitment

Ensuring a better tomorrow

(5) Holistic Market Concept

33

HolisticMarketConcept

Internal

Relationship

Integrated

Social

Responsibility


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We can say that AARTI INDUSTRIES LIMITED also follow the

holistic marketing concept is by the following reasons.

Internal:

The AIL takes care of their employees in a proper way. Right from their senior

management to their employees and staff. Everyone is treated as if a family. The AIL

takes care of the needs and the wants of the employees and that the employees in return

work efficiently and effectively. Also the strategies, principles, recruitment, selection,

and motivation to the employees are done very carefully of each and every department.

Integrated:

The integrated marketing is the marketing where the task of the marketing of the

products is done. The marketing mix is an essential part of marketing and the 4 Ps is

well considered here (Marketing Mix explained in the later part). So the AIL tries its best

to develop its marketing mix.

Relationship Marketing:

The relationship marketing is maintaining the relationship with the customers

stakeholders, suppliers distributors etc, and being loyal to each of them. The AIL is

among those companies who does the relationship marketing as the AIL not only

maintains the relationship with each of them but also treat them as their family whether

the customers suppliers distributors are oft the local market or of the foreign market.

Socially Responsible:

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In todays world being socially responsible is very important. The AIL has tried its

best to be a socially responsible company by maintaining the ethics and moving on with

the environment al, legal and the community trends of the place it is situated.

(6) Marketing Mix

There are four element of Marketing Mix

1) Product

2) Price

3) Promotion

4) Place

(1) Product

Product is anything that is offered to a market to satisfy a want or their needs. The

product having nearly all quality, performance, or innovative features are generally

easily accepted by the customers. So a product should possess all of these qualities so as

to retain their customers for an extended time. The products of the AARTIINDUSTRIES are in the maturity stage of the product life cycle. As in the maturity stage

sales of the product is not too high and not low so the same is in the case of the AARTI

INDUSTRIES product the products sales are not too high and not too low.

There are many product of Aarti Industries Limited.

i. Nitro Chloro Benzene (NCB)

ii. Mono Chloro Benzene (MCB)

iii. Para Nitro Chloro Benzene (PNCB)

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iv. Ortho Nitro Chloro Benzne (ONCB)

v. Dinitro Chloro Benzene (DNCB)

vi. Para Dichloro Benzene (PDCB)

vii. Ortho Dichloro Benzene (ODCB)

viii. Nitro Benzene

ix. Alkylated Anilines & Toluidines

x. Chloro Phenols

xi. Fluoro Compounds

xii. Agrochemicals

xiii. Sulfuric Acid

xiv. Chloro Sulfuric Acid

xv. Bulk Drug Intermediates / Special Chemicals

xvi. Bulk Drug Under R & D

a. Anti-Hypertensive

b. Anti-Diabetic

c. Anti-Cancer

d. Anti-Deprresents

e. Bronchodilators

xvii. Dyes Calsiyam phosphate

QUALITY

Quality is one of the important and basic aspects of marketing. Being a chemical

company, consumers may not be directly using AIL's products, and it may be difficult to

see how the chemicals they produce enrich the lives of people. But the AIL do contribute

towards improving the peoples quality of life since the end users of their products are

industries ranging from agrochemicals and dyes to speciality chemicals and

pharmaceuticals - markets that are critical to long-term sustainability. By supplying high

quality and good value products to their customers, AIL indirectly help people to have

access to better medicines, fertilizers and diverse items of daily use. In other words,

greening the supply chain management plays a significant role in their business strategy.

DESIGN AND FEATURES

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As the product is chemical the design and the features is not possible. The products

(chemicals) in the AIL are either in the powdered form or in the liquid form.

SIZESFor the solid form, the plastic gunny bags have the minimum size of about 50 kg

and the maximum above 450 and this is mostly used for the local market packaging and

the demand of the customers. For the export purpose he plastic gunny bags are only used

but the size of the gunny bag differs. The size turns to be 500 kg when it is sent to the

foreign customers.

For the liquid form the containers are used. These containers are packed in such a

way that the chemical does not react with the drums. These drums are of different sizes

BRAND NAME

The product i.e. the chemical is marketed in the market in the brand name of

AARTI INDUSTRIES LIMITED (AIL) in INDIA as well as in the foreign markets

SERVICES

The services offered by the AARTI INDUSTRIES to its customers after their

customers receive the order are as follows:

Product information,

Safety data sheets,

Instructions for the of the product if facing any problem,

Product handling guidance.

PACKGING

The product packing of the Aarti Industries Limited are of two forms they are

Solid Form & Liquid Form

Solid Form:

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In AARTI INDUSTRIES LIMITED the chemicals are also in the solid form

which is then converted in the crystals like sugar for the customers. These solid crystals

are mostly packaged in the white plastic gunny bags. These bags are for the local market

as well as for the export purpose also. The plastic gunny bags minimum size is 50 kg and

this is mostly used for the local market packaging and the demand of the customers.

For the export purpose he plastic gunny bags are only used but the size of the

gunny bag differs. The size turns to be 500 kg when it is sent to the foreign customers.

This bag has such characteristic which matches the chemicals that are filled in the bags.

Liquid Form

In AARTI INDUSTRIES LIMITED the liquid chemicals are mostly sent in big

containers. These containers are packed in such a way that the chemical does not react

with the drums. These drums are of different sizes and he drums are made of such

material which can bear the highly chemical characteristic so that there is no hazard

caused and the chemical reaches the customers safely.

Solid Form:

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In AARTI INDUSTRIES LIMITED the chemicals are also in the solid form

which is then converted in the crystals like sugar for the customers. These solid crystals

are mostly packaged in the white plastic gunny bags. These bags are for the local market

as well as for the export purpose also. The plastic gunny bags minimum size is 50 kg and

this is mostly used for the local market packaging and the demand of the customers.

For the export purpose he plastic gunny bags are only used but the size of the

gunny bag differs. The size turns to be 500 kg when it is sent to the foreign customers.

This bag has such characteristic which matches the chemicals that are filled in the bags.

Liquid Form

In AARTI INDUSTRIES LIMITED the liquid chemicals are mostly sent in big

containers. These containers are packed in such a way that the chemical does not react

with the drums. These drums are of different sizes and he drums are made of such

material which can bear the highly chemical characteristic so that there is no hazard

caused and the chemical reaches the customers safely.

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Labeling

The labeling is done by the company in a most simplest and understandable way.

As the labeling is simple the workers also understand it properly and so the chances of

damage of any hazard is reduced and the danger is reduced.

Format of the labeling that is done on the gunny bags which are sent to the

customers by the company. The format of labeling of the domestic and the foreign

market that are on the gunny bags are the same with few more additions done in the

foreign bags format.

The lot number:

The lot number is there which means that the drum is containing the chemical whose lot

number is suppose 56 so that if there is any problem in the chemical than the lot number

will help in knowing that whether the whole lot is spoiled or only that particular drum is

spoiled.

Gross weight:

Gross weight means the weight of the chemical, whether in solid or liquid forms that is

kept in the gunny bags or the drums.

Tare weight:

Tare weight is the weight of the gunny bag or the drum in which the chemical is being

filled for transportation.

Net weight:

Net weight is the sum of the gross weight and the tare weight.

Bag number:

The bag number is given to each and every bag. If the lot of the chemical

is spoiled then for knowing that in a particular lot which bag is spoiled and easy to see

that whether the whole lot is spoiled or only that particular bag or drum is spoiled.

WARRENTIES

Aarti Industries limited provide warrantee of 1 year for all product.

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GUARANTEES

Aarti Industries limited provide guarantee of 3 years for all product. The

chemical products which exceed the expiry date than those products are recycled in the

plant.(2) Price

The pricing in the AARTI INDUSTRIES LIMITED are set by the board of

directors with the marketing managers.

The companies also set their pricing in many of the ways. As in small companies

the pricing is set by the boss. Whereas in the big industries the pricing policies, pricing

objectives are set by the product or the department managers and later on it is approved

by the top level management of the industries. Even in AARTI INDUSTRIES LIMITED

the prices are firstly been set by the managers an then it is given to the top level

management with the complete report with reasons of the set prices and after analyzing

the whole report the top level management approves it (if the prices that are set are

proper then the price is finalized and if not it is again reviewed and then by discussions

the prices are set).

And also in some industries where there are different department s like the finance

department, marketing department, human resource department, production department,

research and development, stores department health and safety department etc. the

pricing is the key important area there is a separate pricing division which determines the

appropriate price. And this pricing department reports to the marketing department,

finance department and also the op level manageme

The following method is followed in setting the pricing of the products.

41

EXPENSES(Electricity + water + Wages + salary)

MATERIAL COST

OVERHEAD EXPENSES


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The prices the chemicals of AARTI INDUSTRIES LIMITED are set in the following

way:

Firstly the material cost is taken into consideration and counted. He 60% of the

set price is the cost of the raw material involved in the making of the product.

Then the expenses are being calculated that is used or spent in the making of the

product. These expenses are the electricity (power), water expense (pani) and the salary

& wages (pagar) that are considered. These expenses involve 20% weightage.

After the expenses the overhead expenses are been considered. These overhead

expenses may be the individual overhead cost. This expense has 20 %of weightage.

Lastly the percentage of profit is been kept by the company.

Then finally the selling price ofthe products is been decided or finalized by the

AIL.

(3) Place

There are two types of Marketing place

Domestic Market of Aarti Industries Limited

Export of Arti Inustries Limited

(i)Domestic Market of Aarti Industries Limited

AARTI INDUSTRIES LIMITED can be said as one of he largest producer of benzene

based chemical product and intermediary chemicals in India and the products

manufactured by the AARTI INDUSTRIES LIMITED are use in financial transactions

42

PERCENT OF PROFIT

THE PRICE(SELLING PRICE)


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without working with an agent or a broker. By using the internet, the most used media

nowadays. The purchasing agents can search for the best vendors and also the values.

Nowadays companies are trying to identify the customers who are more profitable to the

company and most importantly who possesses values that are matching the companys

values in addition. This will help in developing quite a excellent amount of rape between

the company and its customers / consumers to carry out a long lasting relationship. As

value helps in building relationships so does the service helps as it is the key point to be

considered by the company as by providing the proper amount of service the company

can win the heart of their customers.

The chemicals that are mostly sent in Indian markets are the

1) benzene-based intermediates

2) Sulphuric acid & its allied products.

3) Agrochemicals & fertilizers

4) Active pharmaceutical ingredients (apis)

5) Other intermediates & specialty chemicals.

The states in which the AARTI INDUSTRIES LIMITED markets its goods are as

follows:

Gujarat,

Maharashtra,

Haryana,

Himachal Pradesh, and other.

(ii) Export of Arti Inustries Limited

Aarti Export of Last 4 Years

Year

2005

2006

2006 -

2007

2007

2008

2008 -

2009Amt. in

Crores 341.61 303.57 376.50 588.44

CHART NO :- 2

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0

100

200

300

400

500

600

2005-06 2006-07 2007-08 2008-09

Amt. in Crores

Aarti chemical is exported to Europe more than any other country because in Europe

chemical manufacturing industries are prohibited so they are insisted to export maximum

quantity of chemical from India through Aarti chemical industries.

Products which are exported by the AIL to the different countries these countries are as

follows:-

United States of America,

Germany,

Italy, Belgium,

Japan,

United Kingdom,

Spain,

Switzerland and

Korea.

The AIL has set up its own Alchemic plant in United Stated of America and

United Kingdom also so as to endow with better service to its North American and

European Markets also that the manufactured goods is delivered to their customers on

time and they do not have to linger too long for the delivery of the product and also the

expenditure and time is not worn out.

With the increasing globalization and the trade among the countries, the company i.e. the

AARTI INDUSTRIES LIMITED is well geared to make its way into the worlds market

and establish its presence among them all.

Name of the products that are exported by the AIL. (These products are similar

products that are marketed in India)

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Para Nitro Chloro Benzene (PNCB)

Ortho Nitro Chloro Benzne (ONCB)

2:4 Dinitro Chloro Benzene (DNCB)

Para Dichloro Benzene (PDCB)

Ortho Dichloro Benzene (ODCB)

Nitro Benzene

Alkylated Anilines & Toluidines

Chloro Phenols

Fluoro Compounds

Agrochemicals

Other Major Products

Bulk Drug Intermediates / Speciality Chemicals

Bulk Pharmaceuticals

Bulk Drugs under R & D

These are the above chemical products which are exported by the AIL to the different

countries these countries are as follows:-

United States of America,

Germany,

Italy,

Belgium,

Japan,

United Kingdom,

Spain,

Switzerland and

Korea.

The AIL has set up its own Alchemic plant in United Stated of America and

United Kingdom also so as to endow with better service to its North American and

European Markets also that the manufactured goods is delivered to their customers on

time and they do not have to linger too long for the delivery of the product and also the

expenditure and time is not worn out.

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With the increasing globalization and the trade among the countries, the company

i.e. the AARTI INDUSTRIES LIMITED is well geared to make its way into the worlds

market and establish its presence among them all.

(4) Promotion

The promotion done by the Aarti Industries Limited is by the following ways.

In the magazines by giving the products the company produces and the quality

that the Aarti Industry provides.

In the newspapers by giving the products the company produces and the quality

that the Aarti Industry provides.

Production Department

(1) plant layout

46

SSP

Fire

Fighting

Pump

House

Ammonia

Storage

Tank

Water

Reservoir

ETP

3.4 DCNB

Distillation

Section

HCL Storage

Acid

StorageDG

Section

Safety

Dept.Security

DMS

Plant

PNCB

Flaking

Section

MCB Plant

Acid Storage2, 5-

DCNB

OPDA

Plant

Garden

G.I.D.C NCB Plant


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Layout:-

Layout refers to the arrangement of facilities in a particular work.

Plant layout is an overall arrangement of the production process. Store room,stock room, material handling equipment, employee services & all other accessories

required for facilitating the production in the factory. It is a Master Blue Print for co-coordinating all operation performed inside the factory.

Objectives Of Plant Layout

To minimize handling and transportation of material

To ensure economic utilization of available floor space.

To ensure efficient control over the various processes of production.

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To minimize cost of production.

To maximize convenience and safety of the workers.

TYPES OF PLANT LAYOUT

The types of layout are given below.

1. Process layout

2. Product layout

3. Fixed Position layout

Layout refers to the arrangement of facilities in a particular work.

Plant layout is an overall arrangement of the production process. Store room,

stock room, material handling equipment, employee services & all other accessories

required for facilitating the production in the factory. It is a Master Blue Print for co-

coordinating all operation performed inside the factor

Objective of Plant Layou

To ensure economic utilization of available floor space.

To ensure efficient control over the various processes of production.

To minimize cost of production.

To maximize convenience and safety of the workers.

To minimize handling and transportation of material

Types of plant layout

Mainly there are few types of layout that are given below.

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Process layout

Product layout

Fixed Position layout

Combined layout

In AARTI INDUSTRY the company follows a combined layout. The combined

layout is relevance of the product layout, process layout or fixed location layout and their

firm meaning is difficult to know. As in the most of the industries and the companies the

combination of the product layout and process layout is noticed. It is possible to have

both types of layout in an efficiently combined form.

As AARTI INDUSTRY is producing chemical product, they are applying

combination of both product layout and process layout because the machineries from

which they are producing chemical are arranged in accordance to their product and the

way it is to be processed.

Benefits of locations

It is an GIDC area

Easy availability of local employment.

Convenience in transportation through rail and road

Good earnings.

Availability of market

Better communication system

Availability of water and electricity supply

(2) Material Handling at Aarti Idustries Limited.

In this organization many types of material such as raw material, purchased components,

materials-in-process, finished goods, packaging material, maintenance and repair

supplies, scrap and waste and rejects or rework are used and handled. Many chemical

which is hazardous to human being should be handled very carefully so that the chemical

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may not harm anybody. Even the raw material or the main product need special handling

to protect them from condition such as heat, cold, humidity, light dust, flame.

Many types of equipment are used in this organization such as

1. Cranes,

2. Industrial trucks

3. Pipe lines

4. Steal Tank

5. Pallet

(3) Production Process

Raw material

The company manufacture its products from the basic raw material-benzene and

sulphuric. The other major raw materials are chlorine nitric acid, ammonia, caustic soda,

and methanol. All these raw material are available freely in sufficient quantity in the

local and international markets. The major suppliers of this raw material are:-

Reliance industries ltd.

Bharat petroleum corporation ltd.

National organic chemical Industries ltd.

Standard albalies ltd.

National rayon corporation ltd.

Grasim industries.

Gujarat Narmada Valley Industries corporation.

Deepak Nitrate ltd.

Transport ltd Dubai.

Helm chemicals Germany

Universal chemical Bahrain.

Raw material Purity

Mono chlorobenzene 99.99%Nitric acid 98%

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Sulphuric acid 98%

Spent Acid 72%

(Part of sulphuric acid)

Process of NCB, ONCB, PNCB

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Benzene + Chlorine two both Mixed and gives Mono Chloro Benzene (MCB) When

MCB is mixed with Benzene + Chlorine it gives Nitro Chloro Benzene (NCB). When

NCB is mixed with Benzene + Chlorine + MCB then Crystallization and Nitration it

gives as finished goods as Ortho Nitro Chloro Benzene (ONCB) and Para Nitro Chloro

Benzene (PNCB)

Raw material like Mono Chloro benzene, nitric acid, Sulphuric acid, spent acid (part of

Sulphuric acid) are brought in the plant and before they get into further process there is

tight quality check on it, it eh material is in proper form then it is sent to the plant for

further proper form then it is sent to the plant for further processing.

52

Nitrator Separator Washer Separator Water

Spent

AcidMCB, Mix

Acid,

Nitric acid

Storage Tank

P cut

NCB

Dryer

ETP

Distillation CrystallizationStorage Tank

NCB

ML

Pure PNCBPure ONCB


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In the plant the raw material is brought together in a Nitrator, in the nitrator mono chloro

benzene is then mixed acid and nitric acid. Then this mixture is further sent to the

separator through pipes as it is in liquid form. Through separator NCB is obtained which

floats above spent acid sediment down. The NCB is now sent to washer and spent acid is

sent to storage tank. The washer machine is filled with water in which NCB is washer

and separated.

From this the water is sent to ETP. NCB is sent to dryer machine for drying the

remaining water. From dryer machine NCB is sent to storage tank. NCB is now ready for

crystallization process. Through crystallization process pure PNCB is obtained. ML is

also obtained which is sent for distillation process. Through this pure ONCB is obtained.

P-cut is also obtained which is again sent for crystallization process.

From the above process NCB, PNCB, ONCB are obtained. These are in liquid form

when produced. According to customers preference they are converted into flake form

or powder form as a required. Liquid forms of chemical are sent by container as they are

at different temperature.

(4) Product Uses

Manufacturing of fertilizer, heavy chemical, coal tar product, dyes,

plastic, paints, and pigment.

Explosive, textile, inorganic fertilizer like super phosphate, sulphates, etc.

In metal processing use for pickling of steel, in purification of petroleum

product.

Pharmaceuticals, making of alcohols, detergent, insecticides, and

herbicides.

In food industry in manufacturing of starch syrups and other products.

In transfer of lead accumulators or batteries are used.

(5) Plant Utilities

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Every plant or industry or human being requires certain basic necessities without which

it would be impossible to function. Necessities like water, air, energy (power) fall under

the category called utilities. It is no wonder that the utility section is called the heart of

the plant.

At A.I.L, the following utilities are created and consumed such that various other plants

producing various products are the major consumer of this utility.

These utilities are mainly:

STEAM High pressure

Low pressure

Medium pressure

AIR Process air

Instrumentation air

RAW WATER

POWER

CHILLING WATER Brine water

Steam

This basic utility is created in bulk at Sulphuric acid plant and Boilers

Advantage of steam:-

Easily available

Relatively cheap to make

Provide a good heat transfer medium

Air

A very important utility for any plant, air is basically used for two main purposes. Air

used is mainly as compressed air which is created by using air compressor. The end

product that is compressed air is then sent for various purposes depending on its main

use. When it is used in the process it is called process air. When the compressed air is

used for pneumatic purpose like Rota meters, pneumatic valves, which are directly linked

to the main digital control room, it is called instrumentation air.

At AIL Reciprocating air compressor is used. At AIL 350 CFM (cubic feet per minute)

and 320 CFM AC is used, which are in stand by to each other. These are used for

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instrumentation air. There are three 100 CFM AC, out of this three, two are used for

process air while the third one is used for making nitrogen gas.

Raw water

This utility is used mainly for the purpose of being made into steam. The largest

supplier of this is the Gujarat board.

Chilled water

At AIL, two kinds of chillers are used. Thus AIL have ammonia based as well as Freon-

22 as refrigerant. The cooling effect is measured in terms of tones of refrigeration (one

tone of refrigeration is equivalent to 12000BTU/hour).

Ammonia is used as a refrigerant because of particular thermodynamic properties which

enable it to move heat far more efficiently than other refrigerant gases. It is particular

suited to working to in the range approximately 0-15c and hence widely used in the

chemical industries as well as other industries like food preservation and chilling of milk,

dairy product, beer and cold drinks.

Freon22 is used when AIL need temperature of -17c. The working principle remains

same.

Power

This utility is required and is often considered as the bloodline of the plant.

55

Boiler

Extraction

Turbine

De aerator Condenser

Gearbox Generator Transformer

Tripper

3 PhasesR, Y, G.


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The turbine rotates at RPM of 9720. While AIL supply frequency of 50 hertz. Exposing

the generator to such high RPM would lead to damaging of the generator, so for this

introduce a gearbox whose primary aim is to lower the RPM. Here the gearbox used is

specified in terms of the ratio of the turbine blade RPM to generator RPM. In order to

give out power at 50 hertz, the generator must rotate at 1500 RPM. The gearbox is

operated at a ratio of 6.4

In the event that any of the major computer system fail, AIL have a back up system. The

most important feature of the acid plant is revealed here. AIL operates the back up

system in such a manner that the acid plant get top most priority this is done because the

plant I is primarily steam producing unit which produces acid also using this steam AIL

can run the diesel generator.

AIL last option is to lower the load in the power plant, failing which the plant is asked to

shutdown.

(6) Maintenance

The maintenance of plant is important for the smooth running of any company. AIL

following three types of maintenance are done. They are as follows

Electrical maintenance

Civil maintenance

Mechanical maintenance

Electrical maintenance

The electrical maintenance includes the maintenance of the following factor:

1. Motors

2. Telephone system

3. Electrical installation

4. Switch gears

5. Meters

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6. Generators

7. Lighting

8. Fans

Civil maintenance

The civil maintenance mainly includes the maintenance of the following. They are

as follows:

1. Building construction

2. Service facilities (water, A/C, ventilation)

3. Fire fighting4. House keeping

5. Scrap disposal

6. Janitor

7. Gardening

8. Drainage

Mechanical maintenance

The mechanical maintenance mainly includes the following factors:

1. Machine and equipments

2. Transport vehicles

3. Material handling equipment

4. Steam turbine and electricity.

(7) Machine and equipments

The following are the machine and equipments which are used in the AIL:

i. Storage tanks

ii. Reactors vessel

iii. Distillation columns

iv. Condensers

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v. Pumps

vi. Absorber

vii. Scrubber

viii. Boiler

Boiler is equipment in which steam is produced from water in an economical way i.e. by

using cheap but high calorific value fuel.

Steam is required in most of the chemical manufacturing processes.

Types of Boiler:

Depending upon the type of fuel used for steam generation the boilers are divided into

different types.

1. Coal fired boiler

2. Oil fired boiler

3. Agro waste fired boiler

In AIL the steam of 24 kg/cm^2 is generated from oil and coal fired boiler. There are two

(18 and 13TPH) coal fired boiler and one (10 TPH) oil fired boiler.

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Quality Control

And

Quality Assurance

Department

Quality

It is the sum of the attributes that describes the product. According to the Aarti industry,

the objectives of quality are given below.

Objective of Quality

Aarti industry is expert in producing a product with a world class quality. Its objectives

are as follows.

To satisfy the consumer.

To reduce the cost.

To improve the income.

To increase the productivity.

Aarti has expertise in developing new products & processes that have world class

quality. Aarti is doing research in various areas with special emphasis on pharmaceutical

intermediates, Agro intermediates, pharmaceuticals, Agrochemicals & specialty

chemicals.

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(1) Process of Quality Control Department

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Raw Material comes inthe factory

Quality ControlDepartment Checks the

Ok

Raw Material Storage inStores

Ok

Production departmentuses it for producing

Material Issued toProduction Department

Sent to DispatchDepartment

Not Ok

Final Product Check upby Quality Control

Raw Material Rejected

and Returned back to

Not Ok


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For quality control they are checking the quality of the product in the following ways.

They are checking the quality of the raw-material before receiving that raw-material.

They are checking that raw-material in the laboratory whether that material is

qualitative or not.

They are checking the quality of the product in between of the production process.

They are checking the products quality at the end of the production process.

So in this way they are controlling the quality of the product. They are seeing that

whether the quality of the product is meeting the customers require criteria or not. So inthis way the controlling of quality is done in Aarti industry.

AARTI has expertise in developing new products and processes that have world-class

quality. AARTI is doing Research in various areas with special emphasis on

Pharmaceutical Intermediates, Agro Intermediates, Pharmaceuticals, Agrochemicals and

Specialty Chemicals.

Quality management systems:-

AARTI INDUSTRIES LIMITED is and ISO 9001-2000.

AARTI's pharmaceutical plants are GMP (goods manufacturing practices) approved

and some of the plants have got ISO 9002 Certification.

(2) Quality assurance

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Rejected back to theProduction Department


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The AIL is a company which is able to provide a mass goods of uniform quality. AIL

also follows the quality policy according to which it had obtained ISO-9001, 2000

version certificate (obtained from TUV).

Quality policy:-

Good health cannot be achieved without quality products and quality manufacturing

facilities. We meet all the pharmacopoeias requirements, industry standards and laws that

govern manufacture of APIs & Intermediates. Our Research facilities and plants are

designed to meet world-class standards. Our processes are will established and have

properly documented quality management systems as per c-GMP guidelines. Our Quality

Assurance ensures quality requirements, systems and procedures to meet c-GMP norms.

A periodic training facility to people ensures compliance of GMP needs.

AIL leading manufacturer of intermediates and specialty chemicals is committed to

provide quality products and services leading to total customer satisfaction while

conducting business. We shall strive to continually improve performance, process and

system with and aim to be world class in terms of productivity, safety, occupational

health and environmental performance by harnessing the competence of employees and

ensuring their involvement.

Tools used to maintain the quality:-

AIL is using various tools to control the quality standards. These are

HPLC High pressure liquid chromatography

GLC Gas liquid chromatography

DCS Digital Control System scraping

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Store Department

(1) Structure of Store Management

(2) Responsibility of Store Manager at Aarti Industries Limited

Reporting to the General Manager.

Co ordinate with concerned departments.

Maintain organizational discipline.

Monitoring the progress on departmental activities.

Replenish the stock.

Responsible for raising indent of re occurring item to initiate purchase activities.

Responsible for improvement and development in stores.

Check and confirm the issue of materials to the production department.

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StoreDepartment

Store

Department

Store

Department

Store

Department


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Ensure that the material is being properly stocked at their respective locations.

(3) Flow Diagram of receipt of Store Material

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Receipt of material and inward entry

Preparation of RMAR

Stacking at under Physical inspection

by Experts Person

Getting Quality report in terms ofapproved or rejected

Unloading of material in properpattern at unloading point and

verification with vendors challenge

Rejected material are returned toconcerned vendors

Approved material are kept in properstacking for consumption as per daily

requirement


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There are many materials in the stores; the user department gives their monthly

requirement well in advance and depending upon the stock. The process for receipt and

issue is same as that of the raw material store, packing material store or engineering

store.

The stock in raw material is for a period of one week and that in engineering stores

is of on monthly basis.

After the receipts of material and inward entry Raw Material Analysis Report

(RMAR) is prepared. After that the material is sent to lab (quality control) for checking

whether it is to be accepted or rejected. Then the material is unloaded and taken intostock. Then it is checked whether it is in accordance with material requisite in the

purchase order.

At the last the GRR (Goods Received Report) is prepared

(4) Flow Diagram for Generation of requirement Of Store Material

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(5) Engineering Material Store

Material constitutes and important ingredient of inputs to the activities of several type of

organization. Industries require raw material, components and equipments for

manufacturing the products, spares and services required for the maintenance operation

and engineering materials storage is playing an important role in running the machines

without any time losing and production losing manner. In most of the organization the

value of material constitute and average of 40% to 60% of the total money spent on

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Monthly Requirementof store material by the

user

Generation of purchaserequisition

Release of purchaseorder by the purchase

department

Verification of released

purchase orders by storein terms of monthlyrequirement of user

department


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Corrugated Box

Wooden Box

Tanks

Plastic bag etc.

Safety Department

(1) Introduction of Safety Department

Safety department is handled by A.K Jhariwala at Aarti Industries Limited. Safety is

essentially meant for protecting human life and property. Elimination of unsafe condition

in all the operating area and prevention of unsafe practices are given importance by the

top management of AIL.

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It is policy or Aarti Industries Limited, Vapi to provide more suitable and endangers

work to its workers. Its also provided safety to visitors as well as any other people.

Occupational Health and Safety programs are regularly conducted to achieve our

common goal that is Safety that has been defined as control of accidental loss.

Objective of Safety Department:-

Providing training to workers for running complicated machines.

Apply many rules and regulation as per the government requirement.

Safety department declare some important safety policy.

Purchase of Safety equipment.

To make awareness.

Maintenance of Safety equipment.

Periodically maintain of Safety inspection.

Safety Goal:-

Zero accident or accident free production maintain safe working equipment and

industrial good-house keeping by zero leakage zero spillage and zero discharge.

Plan organize check and evaluate safety measures to prevent or reduce personal

injury, sickness, abnormal event.

Ensure availability and high quality of safety equipment by test inspection, check

and maintenances at least once a month.

Train and develop term for plant safety inspection, job safety analysis, accident

prevention, fire fighting first aid, rescue emergency response, safety precaution while

storage, handling transportation and disposal of hazardous chemicals through group

meeting discussion internal and external training programmed at least once a month.

General safety awareness:

Smoking and consumption of tobacco is strictly prohibited.

Do not run or jump on ladder.

Wash hands and rinse mouth properly before eating, take bath before going

home.

Dont eat anywhere in the plant except in canteen.

All employees should wear helmet and shoes in the plant.

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Dont spill any oily substance on the floor.

Use safety belts while working on high altitudes.

Dont repair any machine/equipment when it is operating condition.

Use flame proof lamp near M.C.B, benzene, ammonia and methanol.

Safety Equipment:

There are two types of Personal Protection Equipment

1) Respiratory Personal Protection Equipment

a) Medical Oxygen

b) Canister Mask

c) Ayer supply mask (organic)

d) Canister mask (In organic)

e) Canister mask

f) Dust mask

2) Non Respiratory Personal Protection Equipment

a) Helmet

b) Eye Plugs

c) Eye Mask

d) Face Seale) Safety Goggles

f) P.V.C. Shuit

g) Hand Gloves

h) Apron

i) Welding Shoes

j) Safety shoes

k) Safety belt

l) Gum boot

(2) SHE Policy:

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Safety Heath Environment

"As a responsible organization engaged in the business of manufacturing chemicals, we,

at (SHE) performance related to our activities, products and services, through an

effective implementation, monitoring and periodic review of the designed SHE

Management System".

Ensure continual improvement in the SHE Management System

Comply with applicable SHE legal requirements

Institutionalize effective resource management, with a specific focus on energy,

water and basic raw materials

Strengthen pollution prevention & waste reduction practices and strive to provide

a safe and healthy environment

Enhance SHE Management System awareness about the desirable practices to be

followed by employees and other concerned stakeholders, through proper

communication.

SHE INITIATIVES FOR THE YEAR 2007-2008

Three new flame-proof safety torches procured.

Non-sparking tools procured.

Serial numbers provided to all welding machines.

HAZOP study and risk assessment being carried out.

Recommended for ISO 14001 & OHSAS 18001 certification.

Specific focus on conservation and reduction in consumption of primary raw

materials, energy and water.

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Scrubber system for NOX & HCl modified for better efficiency.

Online Benzene sensor installed in MCB Plant.

Implemented the new hot work permit system. Started providing fire extinguisher

from safety dept. to avoid misuse of plant fire extinguishers.

Air moisture removal filter installed in fresh air line in chlorine shed.

Implemented the safety work permit system for CNA and Methanol tanker

unloading.

Acid spillage transfer arrangement made during emergency in Acid plant.

Emergency training imparted for dealing with cyclones.

Special training sessions organized on skin diseases, AIDS, First Aid and

M.S.D.S. by inviting external experts.

Leaflets in Hindi & Gujarati language for emergency preparedness distributed to

all employees.

Formulated fire-fighting and rescue squad and trained them to be ready for

tackling any emergency.

Hepatitis 'B' injection given to all employees and family members.

Pre-employment medical check-up & yearly medical check-up of existing

employees carried out.

Eye test of all DMS employees done. Power with photo chromic/without photo

chromic lens provided to all DMS employees.

Conferring of the Best Housekeeping Award started.

World Environment Day celebrated on 5th June. GPCB members were present on

this occasion.

Complied with all legal requirements.

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Research & Development Department

(1) Introduction of Research and Development ManagementAarti has fully equipped laboratory with high-tech advanced instruments &

highly qualified technical personnel at its R&D centers. Its advanced Analytical

instruments include,

Gas chromatograph & HPLC

Auto Titrator

Uv visible spectrophotometer

4Digital Polarimeter

Digital melting point instrument

FTIR spectrophotometer

Glass Reaction equipment

High pressure Auticlave

Distillation equipment

Sparkler filter

Glasslined Reactors

Centrifuges

Air handling system AARTI has fully equipped laboratory with high-tech advanced

instruments and highly qualified technical personnel at its R & D centers. Its advanced

Analytical Instruments include:

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AARTI at its Pilot Plant facility has R & D Process Equipments like:

Glass Reaction Equipment Glass Lined Reactors

High Pressure Autoclave SS 316 Reactors

Distillation Equipment Centrifuges

Sparkler Filter Air Handling Systems

Area in which R&D carried out by the company:

The R&D activities are carried out by the company in the areas of bulk and

pharmaceuticals formulations, specialty chemicals and intermediate chemicals.

Benefits derived as result of the above R&D:

The companys R&D centers at Vapi are showing satisfactory progress in their of

development of new products and improvement in existing product efficiencies.

Future plan of action:

The company will continue with its activities in the field of R&D of development of new

products and improvements in existing product efficiencies.

The company has incurred the following expenditure in research and development. In the

areas of new products and improvement in existing products efficiencies.

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Gas Chromatograph & HPLC Digital Polarimeter

Auto Titrator Digital Melting Point Instrument

UV Visib

Chintan Final Project

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