Indofil Industries

CHAPTER 1

General Information

Background of the company:

In 1962 the company started as a subsidiary of a US based company known as Rohm Haas ltd.

In 1982 the subsidiary got separated from Rohm Haas ltd. And Mr. K K Modi started it as a division Modipon Ltd.

In 2007 it started as a division of Indofil Organics Industries ltd. In 2010 it was renamed as Indofil Industries ltd. It is a part of K K Modi Group – Modi enterprise An industrial corporation with diverse business. Modi enterprise has a group asset value of Rs. 28000 crores.

Fig 1

INDOFIL INDUSTRIES COMPANY –

It belongs to the renowned K. K. MODI GROUP OF COMPANIES.

The Management of INDOFIL constitutes a BOARD OF DIRECTORS, with great experience and wisdom. EXCELLENCE as a Foundation and WINNING as a Passion is what describes our Group Chairman, MR. K. K. MODI, who continuously steers his group companies to reinvent and redefine themselves!

1

Modi enterprise

Indofil industries

Godfrey Phillips India ltd.

Modi Entertainment

Modicare Ltd.

Modi Apollo International Institute

ITSPL

Fashion TV India

INDOFIL INDUSTRIES LIMITED, established more than four decades ago, headquartered in Mumbai, a research-led and fully integrated Chemical Company has EMERGED as a successful and vibrant enterprise, riding high on a simple philosophy of retaining loyalty and enlarging the fold of satisfied customers.

Head office: Andheri, Mumbai

CEO: Mr. R K Malhotra, Head of Marketing

Chairman- Mr. K K Modi

HOD HR- Dr. Avinash Deolekar, Senior Vice President

Finance Head: Mr. Sunil Patel, Sr. Vice President

Indofil Industries – Business division:

Indofil Industries Limited is uniquely placed both in Agricultural Chemicals (ABD) as well as Specialty & Performance Chemicals (S&PC) Business. As a part of K. K. Modi group, Indofil has a well-equipped manufacturing infrastructure, a result oriented Research & Development team, and an excellent domestic and international distribution network.

Known around the world as "The Mancozeb People", Indofil has its export presence in more than 50 countries as suppliers of Mancozeb formulations. In India, Indofil is successful in strategic marketing of Insecticides including IGR's, Fungicides (Mancozeb, Tricyclazole, and Zineb etc), Bactericides, Herbicides, Acaricides, Surfactants, and Plant Growth Regulators (PGR). Indofil is driven by "Crop Care Concept" in agriculture business. The focus is to create partnerships for Research & Development, manufacturing & marketing for many more active pesticides & combinations.

Specialty and Performance business works with the philosophy to be a solution provider by innovative products for various industries viz. Leather, Textile, Paints, Plastics and Construction Chemicals.

The Company's long and successful past also provides customers with the assurance that Indofil will continue to be a valued partner long into the future.

Fig 2

2

Indofil Industries

Agricultural Chemicals

Speciality & Performance Chemicals

International Business

Research & Development

Agricultural chemicals:

Fig 3

Speciality & Performance Chemicals

Fig 4

3

Agricultural chemicals

fungicides

insecticides

herbicides

Surfactants

PGR's

Leather chemicals

Plastics chemicals

Construction chemicals

Textile chemicals

Paper chemicals

Coating chemicals

International business:

It is spread across the globe in Australia, Africa, New Zealand, India, France, Germany, Paris, etc.

Indofil Industries ltd. Is a market leader in:-

Fungicides- fruits/ vegetables Fungicides- Paddy/ Peanuts Herbicides- Onions Acaricids- Tea/ Vegetables Insecticides- IGRs Surfactants

Its Manufacturing units are placed in Thane, Pune, Vapi and Dahej.

Its regional offices are placed in Punjab, Uttar Pradesh, Bihar, West Bengal, Maharashtra, Andhra Pradesh, Karnataka and Tamil Nadu.

MOMENTS OF PRIDE:

Received many awards like:

Asia star World star India star PFFCA state “Best company from an emerging region”- Agrow Awards Nov 2010, London

Growth trend

In 2005- 2006 – 322 mt

In 2006- 2007 – 233 mt

In 2007- 2008 – 466 mt

In 2008- 2009 – 597 mt

In 2009- 2010 – 740 mt

In 2014- 2015 – 4000 mt

INDOFIL Industries ltd. Dahej:

Company profile:

Bhoomi Pujan: 19th April ‘08 Construction started: August ‘08 Plant Completion: June ‘09 1st Export: August ‘09

4

Strength of team Dahej:

They are working on:o Productivity improvement

o Time cycle Reduction

o Cost Reduction

o Efficiency Utilization

Quality conscious Committed employees Believe in “TEAM”

Milestones since inception:

Project completed and commissioned in a record time of 1 year. Highest daily production

o 67 metric tonnes on 14th Dec. ‘10

o 81 metric tonnes on 25th Jan. ‘11

Growth trend- Dahej Plant

In 2009 – 2010- 78.98 mt In 2014- 2015- 4000 mt

Investment in Plant and Machinery:

The initial investment in plant and Machinery in the year 2009 was Rs. 150 crores

Future expansion plans:

To set up a new plant in collaboration with a Chinese company within few years. To set up a speciality chemical plant in Dahej

Present manpower status:

Employee strength:Permanent: 114Contract labour: 130Total: 244 (approx)

Organisational Structure:

5

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Fig 5

Types of Communication channels:

FORMAL (written)

E-mails Magazines Circulars Notices

INFORMAL (mostly verbal)

Intercoms Mobile phones Open forum

Vertical and Horizontal communication applied.

Unlike Govt. Communication there is direct & cross functional communication.

It believes in Breaking Chain of command.

Present Product mix:

6

Fig 6

Competitive Scenario:

Regional and National competition- UPL

(Agro business) Sabero Organics

Overall Organisational culture

Employees are associated with the company for many years Employees are committed to their work and their company. Employees believe in team work.

Indofil is an organization where the atmosphere is professional and the culture is warm,

informal and open. The company believes in an open door policy, freedom to experiment

and a free exchange of thoughts. To encourage this, there are various forums of

communication, such as the staff meets for junior level management grades. The basic

idea is to have a broad platform for an open dialogue. An in-house journal called “Indofil

Hilites” is circulated amongst all employees quarterly.

The company gives significant importance to the development of employees through training

and allocates substantial budgets every year. Employees are put through technical training

and skill development training related to the specific jobs which they are expected to do.

Also there exists a systematic way of identifying specific training needs of the employees

during the Performance Appraisal.

7

Mancozeb

Mancozeb 80% W.F.

Mancozeb 85% Technical

Mancozeb flowable liquid

Mancozeb 75% W.G. Grannuals

Strategies for Future growth and development and Benchmarking

Diversification To develop in house production of the raw material To set up new businesses To cover the European market.

Here the strategic group is known as “Growth office”.

Growth office consists of different personalities who have mastered in their fields, like Finance, Marketing, Human Resource, Production, etc.

Vision statement

“Global leader in growth with customer success”

The VISION of INDOFIL is equally simple - to focus on specific opportunities, drive growth and enhance value for esteemed customers. It has a highly skilled and successful sales team that believes in learning and working with the customers as PARTNERS - thus developing the products and services around core issues, to meet their future needs.

Employing 705 people, INDOFIL has a sales turnover of Rs. 782 crores, as on 31st March, 2010.

INDOFIL has a very strong domestic base and a well recognized international presence. Both businesses, Agricultural Chemicals and Specialty & Performance Chemicals, are poised for much faster growth by partnering/joint ventures for manufacturing, marketing and research and development activities with prospective companies across the world.

INDOFIL which is a very strong Company is professionally managed by its CHIEF EXECUTIVE OFFICER & PRESIDENT, MR. R. K. MALHOTRA, a Post Graduate in Agriculture with 35 years "hands-on" experience and is an active and advisory member of various related Technical and Trade Associations.

The Company believes in Complete Team working, Team winning strategies and innovation in its products, services and business processes with an unending urge to excel.

Mission statement

8

Fig 7

Values:

Customer success: Believing that success lies in the success of existing potential customers. On this foundation, doing all possible to understand, fulfil and exceed the customer’s stated and unstated needs, thus enabling them to succeed on a continual basis.

Knowledge: Continually upgrading skills and knowledge about technology, markets, products, customers, regulations and business process. Encourage new ideas and their implementation across the company for commercial benefit.

Prosperity: Winning, doing better than others through exploiting new opportunities and enhancing the interests of every employee, share holder and stake holder. To be recognised and perceived amongst the leaders in the segment of operation.

Teamwork: Employees and channel partners thinking and working together across functions, business and geographies, leveraging the available resources to achieve common goals.

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Velocity: Responding to internal and external customers with a sense of urgency by consistent, focussed and accelerated growth of the organisation with timely and optimal utilization of all resources.

CHAPTER 2

Production department

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GM (plant)

Production head

Deputy manager

Shift manager 1

Process engr. (DCS)

Process engr. (field)

Shift manager 2

Process engr. (DCS)


Shift manager 3

Process engr. (DCS)


Shift manager 4

Process engr. (DCS)


Departmental Structure

Fig 8

ACTIVITIES OF PROCDUCTION DEPARTMENT

The activities of production department are as follows:-

To ensure safe, continuous operation of plants.

To implement and train down the line personnel on quality system.

For continuous improvement in operations of plant and utilities conservation.

To coordinate with maintenance departments for smooth running of the plant.

To ensure good housekeeping in the plant.

Minimization of waste and maximizing productivity

Types of product and their specifications

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Specifications MANCOZEB 80% W.P. (powder)

85% Technical

Manfil 75% WG Granules

Flow able liquid

Active ingredient(AI)

Max. 81.5% Max. 85.5% 75.5% 35.5%

Suspensibility Min. 72% Min. 70% Min 68% Min 90%pH 6.8 – 7.5 Same Same SameTime to dissolve in water(WOT)

60 sec Same 30 sec NA

Moisture content(MC)

Less than 1%

Same Max. 2.5% NA

Wet Sieve Test(WST)

More than 99%

Same NA

Fig 9

Raw materials used:

Carbon disulphide (CS2) Ethylene Diamine (EDA) Caustic soda (NaOH) Manganese sulphate (MnSO4) Zinc sulphate (ZnSO4) Sodium lignosulphate (SLS) Hexamethylene tetramine (HMT)

Production process

Production of D-14

First chilled water is poured into the reactor

Then CS2 and EDA are added into the reactor.

EDA is added in two lots- 1st lot is added with Caustic soda. And 2nd lot is added with CS2

Caustic Soda is added in 3 lots- 2 lots solo and 3rd lot with CS2

And then excess CS2 is removed through distillation process. Thus D-14 is prepared

Production of M-22

Initially there is water present in another reactor. In this reactor the D-14 is poured with MnSO4.

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MnSO4 is added in 2 lots- 1st lot is the heated lot added solo, 2nd lot is added along with D-14.

And then the reaction takes place. ZnSO4 is then added to the reaction so that it is not reversed.

This is how M-22 is prepared.

This M-22 has great moisture content, so to remove excess moisture M-22 is passed through Larox Pressure Filter, where its total solid content is adjusted to around 50% and moisture content is brought down to 52%- 54%.

Preparation of Slurry

The slurry is prepared by adding water and then stirring it well in the Reconstitution tank.

Preparation of powder

Now this slurry is poured in Spray Drier where small droplets are formed of it with the help of atomiser.

Then Hot air (temp- 310 degree Celsius) is blown in the Spray drier which removes the excess moisture and reduces from 52% to 10%- 12%.

This is how the powder is prepared.

Finished Product:

This powder is sent to a storage tank SILO from where is sent to Rotary Vacuum Drier (RVD).

Here the air and moisture is removed with the help of heating and then vacuuming.

The moisture content here is reduced from 12% to less than 1%.

Thus the finished product is prepared and sent to cooler for cooling and then further sent for packaging.

Production Layout: (approximate)

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EDA + CS2 + Water+ NaOH = D 14

Fig 10

TYPES OF PRODUCTS AND THEIR USES

In this plant only 1 product is manufactured. But it is produced in different varieties.

The main use of Mancozeb is to be used as Fungicide.

It is used all over the world to prevent fruits & vegetables from fungus attack.

This product is not used directly. A solution is prepared according to the need by mixing it

with water in a certain proportion and sprayed all over the fields.

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Precipitator:

MnSO4 + D14 + Water = M22

Larox Pressure filter = M22 – Moisture

Rotary Vacuum Drier: Powder- air - Vacuum

Cooler

Spray Drier: Slurry - Moisture

Blender (for packaging)

Homogenizer (preparation of Slurry)

COORDINATION BETWEEN PRODUCTION DEPT &.....

Logistics and Purchase:

Here first the planning department plans the budgeted sales of the year. They inform the

purchase department about the raw materials required to meet the budgeted sales and the

Production department about the budgeted production to be done in order to meet the sales.

The purchase department consults with the inbound logistics department to get the status of

the present raw material and identify the gap between the required and available. The

Production department co-ordinates with the logistics department for production process

Production and dispatch:

During the production period the samples are sent to the QA department for verification and

testing. The final product‘s samples are also sent for testing. After the approval by the QA

department, only then the finished goods are sent to outbound logistics for further packaging

according to the consignment. Now the consignment is sent to Sales department for further

dispatch procedure.

Production and Engineering

Production department perform day wise production planning. Here Engineering department

comes into picture as it has to provide daily preventive maintenance schedule so as to

maintain a smooth working of production process. And in case if some breakdown takes

place, the production department issues a work permit (via SAP) to the engineering

department (shift wise) which performs the required action and fix the problem.

Usually Daily review Meetings are conducted to report and discuss the problems, breakdowns per day and to come up with the solution.

And these daily Review meetings are further reviewed in Weekly Review Meetings and these meetings are further revised in Monthly meetings, based on which the budget is planned.

Material handling equipments:

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Forklift trucks

The plant is designed in such a way so that it can use gravity as an equipment to move materials from one stage to another. The plant is basically designed on gravity.

DCS- Digital Control System

DCS system is used in controlling all the activities of the production process through computerized software. All the vessels and reactors are controlled through this system.

There are 4 operators handling this system. The pressure, the heat, the material entry, its exit, etc are controlled by this system.

All the similar activities are grouped together in order to simplify the process.

CHAPTER 3

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Human Resource department

Department Structure and all activities:

Fig 11

The activities of Personnel /HR department are as follows:-

Ensure management of recruitment of personnel at the manufacturing unit.

Ensure administration of the performance management system at the manufacturing

facility.

Ensure compliance with all statutory and regulatory requirements relative to the

manufacturing facility.

Identify training need and implement.

Efficient administration of welfare, hospitality, communication, estate etc.

Liaison with government authority, external agencies / Institutions & local authority.

Implementation of multi skill for shop floor personnel.

Proactive approach of handling land losers employments issue.

Impart training to officers and above.

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GM PLANT

DY MGR HR

Executive Administration Executive HR Sr. Executive

Security

Security Officer

Security Officer

Security Officer

Functions of time office:

The main purpose of time office is to keep record of absent and presence of employee.

Office timings: - 9.00 Hrs. to 17.30 Hrs.

Weekly off Day: - Sunday

Attendance system: - Computerized Windows Based Punching system.

Shift timings: - Morning Shift – 6:00hrs to 14:00hrs

Afternoon Shift – 14:00hrs to 22:00hrs.

Night Shift – 22:00hrs to 6:00hrs

LEAVES

Privilege leave - 30 days p.a.

Casual leave - 8 days per annum

Sick leave - 7 days p.a.

Maternity leave - N/A

PERSONAL DETAILS OF EMPLOYEES:

1. C.V. (Curriculum Vitae).2. Employment form (Education and experience).3. Offer letter copy.4. Appointment letter copy.5. Conformation letter copy.6. All education certificates.7. Other Certificates (like Certificate of residential proof for loan applications).8. Warning letters for misconduct.9. Xerox copy of Form no. 2 ( declaration/ Nomination form)

HUMAN RESOURCE PLANNING:

The organisation follows the common human resource planning process.

1) Analysing the present situation of manpower.18

2) Forecasting demand of manpower in future3) Determining the supply of manpower.4) Comparing the demand and supply of the manpower5) Action plans6) Monitoring and Audit

Recruitment and selection

In Indofil, recruitment is done when any department is in a need of manpower. So

departmental head has to fill man requisition form, in which detail regarding job title when

required, description of duties, specific experience required and education & special training

required are mentioned. This form is then signed by departmental head then it is sent to HR

department head and then sent to GM.

Then the personnel dept. through its sources i.e. internal/external fulfils the requirement of

the dept.

Firstly, the personnel dept. tries its internal source i.e. within the company if any employee is

suitable for that vacancy the he is appointed or the personnel dept. refers the computer data

bank or through internal reference.

If the internal source cannot fulfil the requirement then through external source the

requirement of the dept. is fulfilled. The external sources of Indofil are approved placement

consultants or newspapers.

The Recruitment Vacancies are classified as follows:

Fig 12

Sources of recruitment:19

1A

Sr. Vice President, Vice President and Director

BC

2 B General Manager

3B Chief ManagerC Sr. Manager

4A ManagerB Deputy/ Assistant

Manager

5

A Sr. Executive, Shift Manager

B Officer and ExecutiveC Process Engineering

Field, Electrical

Internal sources:o Employee retention

o References of internal employees

External sourceso Employment exchanges

o Advertisement in News papers, Journals, etc.

o External references

SELECTION PROCESS:

In selection procedure, interviewer assists the interviewee on the basis of general intelligence, ability to express self verbally, enthusiasm, relevant experience and qualification and then overall rating is decided.

Now shunting of all the applications for the vacancy is done as per the requirement and convenience of the company.

This sorting process is done under the supervision of the HR mgr.

After the sorting process the selected candidates are called in the organisation for the interviews.

Interview

1st Interview- Interviewer- HR Manager

2nd Interview- Interviewer- HR Manager and Heads of Department

3rd Interview- Interviewer- General Manager, HR Manager, and HODs

After the 3rd interview, the candidate is finalized by the general manger.

Then GM informs the head office and sends the offer letter to get it signed.

Mean while the medical check up of the candidate is done

Then the offer letter and the appointment letter are handed over to the selected candidate.

Performance Appraisal system for different levels:

Performance appraisal is the system used to evaluate the performance of employees, and to

provide some rewards & incentives on their performance. Performance Appraisal focused

primarily on helping the individual to develop his/her present role capability for that role.

There is same PA system for every employee and trainee in the Organisation.

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At the beginning of the financial year, the employee decides his goals and objectives towards the organisation. This is known as the key result area.

Key result area has certain Key Performance Indicators which are the small tasks or jobs performed in order to achieve the objectives or goals.

At the end of every quarter HODs have a meeting and they measure and compare the actual KRA of an employee with the performance of an employee.

At the yearend an annual report of the KRA is prepared and PA is conducted on that.

Any gap or deviation or fulfilment of the objective is communicated to the employee and corrective measures are taken.

Training and development activities including Feedback process:

Training is a steady process but it can be healthy exercise means making one effective and

perfect in his work assigned to him and to perform better in future. There are various

training programme carried out in Indofil Industries ltd. for better performance of an

employee, following are the types of training programme carried out…

Behavioural training

Functional training

Safety and health training

Fire fighting training,

Induction training

On job training ,

Class room training,

Technical training,

Process related training

System training

These training needs of an employee is identified by the yearly performance appraisal form,

also with the help of their training needs identification form which is being periodically send

to department head and accordingly the employee are being trained.

Any newcomer in the organisation in the organisation is given the required training on the basis of his job and an overall awareness required.

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Fig 13

FEEDBACK PROCESS OF TRAINING PROGRAMME

After the training programme is over, management tries to know the effective of the training

programme. For this Training Programme Attendance, Feedback and course effectiveness

form is filled up to know that is there any change in his working attitude and quality of work.

AVERAGE TRAINING MAN-DAYS

It is the policy of the company that each and every employee must get at least 2 Man-Days

training in a year.

ROLE PLAYED BY DIFFERENT PARTIES IN TRAINING PROCESS

In training employee the main party involves are Company, Manager and Employee. This

could be better understood as follows…

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COMPANY

Provide structure, materials, resources and guidance to learn and develop

MANAGER:-

Provides personal coaching, counselling and feedback encourages initiative

EMPLOYEE = DRIVER

Task responsibility and initiative, seeks for opportunities for self – learning a feedback from the manager and colleagues.

New joiner Induction training Awareness

ROLES IN TRAINING PROCESS

Fig 14

PROMOTION AND TRANSFER POLICY

PROMOTION

A promotion may be defined as an upward advancement of an employee in an organization

to another job, which commands better pay/wage, better status/ prestige & higher

opportunities/ challenges & authority, better working condition & facilities at a higher rate.

Rating factors:

Promotion is based on an employee’s performance and need.

The other factor that is taken into consideration is whether the employee is capable of handling a higher level job or not.

TRANSFER

Transfer can be defined as change or shift in the work place with same status, responsibility

& authority, etc. It is based on needs of the organization, also on the bases of organization

requirement and written down policy of the organization.

WELFARE ACTIVITIES

Welfare can be defined as the measure implemented by the company, the working

conditions of the employees. Welfare activities are a kind of return, which is given to

employees in return to their work. Following are the some welfare facilities provided by

Indofil industries ltd....

Transportation

Uniform for employee

Canteen and guest house

LTA

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Medical aid

Sports day

Water cooler and toilet

Special gathering

Picnics

Movie shows

Competitions for school kids

WAGES AND SALARY STRUCTURE

Wage and salary are different at different level, which is as follows…

Components of salary:-

Basic Salary 40% of total CTC

HRA 40%

Medical Rs. 1250

LTA 10%

Bonus 20%

Conveyance Rs. 800

Fig15

INDUSTRIAL RELATION

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In Indofil, management is more concerned about the development of their employees. And

employees, in return, are concerned about the development of the organization by providing

quality work and proper coordination with management and their ultimate superior. In

Indofil, there is no Trade union; this shows that there is warm and friendly relationship with

employee-employer and employee-management.

Every employee is free to express their views and problems with the management. In

Indofil, there is no single warning letter being issued, no court cases going on. Management

provides counselling for all employees to improve their work quality. Management also

discusses the problems freely and friendly.

ACTIVITIES CARRIED OUT TOWARDS ORGANISATION’s DEVELOPMENT

Indofil carries out activity like Training of employee and suggestion form from employee for

improving their work environment and ultimately the organization. Indofil has the strategy of

“5 S” which is a Japanese system of maintaining cleanliness in the organization.

ADMINISTRATIVE ACTIVITIES

Administration department has the following activities to perform...

Communication with all dept.

Transportation facilities

Medical service

Welfare activities

House keeping

Canteen facilities

Tickets, coupon and accommodations

TRANSPORTATION

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Administration department look after the transportation of all the employees in the

organization, all the shift employees are being picked up from different stoppage.

SECURITY

The main function of security is to look after the Men, Machine and Materials. It has to

protect these all over. In Indofil there are 3 officers, 1 Executive and 17 Contractual Guards

(including both the shifts).

COMPUTER SOFTWARE USED

Record regarding time office is done in Windows based punching system.

Record of employees is made in excel only.

For pay roll of employees SAP software is used.

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CHAPTER 4

Accounts department

Departmental structure

Fig 16

Activities:

The following is the main activities of Accounts dept.

Indofil Dahej plant reporting – Monthly, Quarterly and Annually.

Compiling company’s yearly budget.

To monitor monthly cash flow.

Managing day to day funds requirements.

To manage the accounts of the company

To manage the taxation policy

BUDGETING

A budget is a co-coordinated financial estimation of the income and expenditure of an

organization related to a specified. Budget says “Are plans of action quantified in money

terms for some future period in time”.

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Senior V.P. (finance)

Sr. Mgr accounts

Officer (accounts)

Officer (accounts)

Officer (costing)

BUDGET MANUAL:

Budget manual is prepared by taking following points in to consideration.

Pricing and duty structure.

Sales volume forecasting.

Raw material cost.

Utility cost.

Fixed cost.

Interest cost.

Capital cost.

Previous year’s expenses statements.

BUDGET PERIOD

Budgets are prepared annually from 1st April to 31st March

ANNUAL BUDGET

The company prepares 2 types of annual budget:

Expenses budget- Production budget

Cash Mgmt Budget.

LONG TERM AND SHORT TERM FINANCE

LONG TERM

The long term requirement of Indofil Dahej is fulfilled by the Head office in Mumbai.

SHORT TERM

Short term requirement of Indofil, Dahej is fulfilled from Head office through HDFC bank.

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ACCOUNTING METHOD / SYSTEM

SAP system is used in Indofil for maintaining all the transactions.

COSTING OF THE MAIN PRODUCT

Costing of the product is based on following factors

Product cost includes the Input landed cost of raw material.

Variable utility cost

The following are the variable utility cost.

Electricity and power

Fuel

Water

Various other expenses.

FIXED COST

The following are the Fixed Cost

Salary and wages

Employee welfare

Insurance

Depreciation/interest

RESPONSIBILITY ACCOUNTING

Department heads are considered as responsibility centre.

Plants are considered as the profit centres.

CASH MANAGEMENT

Management of cash includes monitoring cash inflows and outflows of cash.

Cash Inflows:

Cash Inflows of Indofil are through:

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Receipt from debtors

Cash Outflows:

Cash Outflows of Indofil are through:

Payment to creditors

CREDIT MANAGEMENT

CREDIT POLICY

Indofil allows credit to its debtors for 60 to 180 days.

CONTROL OF RECEIVABLES

Receivables are controlled by preparing Aging schedule and Day’s sales outstanding.

Collection activities are carried out from Head office at Mumbai.

TAXES

The company receives financial incentives as it comes under Special Economic Zone (SEZ).

Almost all the finished goods are exported therefore there is no sales tax applicable.

A special tax known as MAT (Minimum Alternate Tax) is applicable from this year that is FY

2011-2012, which is based on income.

Some of the incentive facilities offered to SEZ units is:

Duty free import/domestic procurement of goods for development, operation and maintenance of SEZ units

100% Income Tax exemption on export income for SEZ units under Section 10AA of the Income Tax Act for first 5 years, 50% for next 5 years thereafter and 50% of the ploughed back export profit for next 5 years.

External Commercial Borrowing by SEZ units up to US $ 12500 billion in a year without any maturity restriction through recognized banking channels.

Exemption from Central Sales Tax. Exemption from Service Tax.

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Exemption from State sales tax and other levies are as extended by the respective State Governments.

FINANCIAL MIS

Monthly cost sheet

Monthly P&L A/C

Monthly budget

Preparation of Balance sheet

Profitability report

Fixed / variable cost report

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CHAPTER 5

Quality Assurance

Departmental structure:

Fig 17

Activities:

To establish and maintain product list results of QA Indofil comparable with

customers’ standards.

Adherence to calibration of instruments/ equipments and analysis of standard

samples.

Customer complaints - Export and Domestic customers

Impart training to officer and above.

To undertake 3 types of QUALITY analysis:

o Input (raw materials/ packaging materials)

o In process

o Finished goods.

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Senior GM- QA (Thane)

Senior manager (company branch)

Executive (export)

Officer

Executive (QA)(7)

Officer Officer Officer

To undertake plant audit periodically- weekly, fortnightly; to see if Standard Operating

Procedure is working right or not.

To execute export activities as per procedures defined.

Types of instruments used:

1. Gas chromatograph2. High performance liquid chromatograph3. Particle size analyzer4. U V visible spectrophotometer5. pH meter6. Karl Fischer apparatus7. Viscometer8. Melting point apparatus9. Centrifugal machine10.Hot air oven11.Water bath12.Moisture analyser

Method of Calibration

Calibration is done through outside agencies as well as in house. Depending upon the

use of instruments, the frequency is decided.

Quality Assurance is responsible for looking after and fulfilling the standard quality norms

as lay down, it undertakes quality checks daily. It checks on the quality of product

randomly selecting one of each type from every batch dispatched only after the product

is marked with Q.A., passed that it is allowed. If quality is meeting as per requirements

and as per specification then only finished goods are dispatched to customers.

There is quality check at every stage of production so as to detect fault, if any, and to

take corrective measures.

Parameters tested in the lab

Product Stage/sample Parameter Frequency

Specifications

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Mancozeb

D-14 % AI 1 batch/ fortnightly

70% minimum

% Na2S 1 batch/ fortnightly

0.1% maximum

Colour 1 batch/ fortnightly

2 to 2+

pH Each batch

8.6 to 8.8

ETU 1 batch/ fortnightly

0.1% maximum

M22 precipitant

Excess of MnSO4

Each batch

0.8% to 1%

% AI 1 sample/ batch

50% – 55%

%Total Solids

Max 3 samples for WDG

50% - 58%

% Purity None Minimum 95%

pH None 6.8 to 7.2

M-45 % Total Solid

1 sample/ batch

Min 52%

% A I None 46% - 49%

% Purity None Min 82%

Viscosity by ford cup method

None 24 sec maximum

Spray Drier % M/C by IR

None 10% to 12%

% AI Once in a day

77 to 80 %

pH Daily after 4 hrs interval

6 to 7.2

WST Daily after 2 hrs interval

45 minutes

Fig18

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Stage Parameter Frequency Specification

Final sampling WOT Each batch Maximum 60 secWST Each batch Minimum 99%

pH Each batch 6 to 7.1 for tech.6.8 to 7.5 for 80% WP

Dry sieve test One batch per day No hard lump more than 3mm, easily soaked in water, residue not more than 250 mg

Wet screen test Each batch Not more than 10 -12 black particles

M/C by moisture analyser

Each batch -

Fig 19

Product Stage/sample Parameter

WDG

( wetable

dispersible

granules)

Homonizer slurry % total solid

% A I

1st milled slurry % total solid

Sediment

2nd milled slurry Total solid

Particle size

Viscosity

Final sample % A I

% suspensibility

WOT per sec

% attribution resist

Appearance

pH

Blooming

Clouding %

35

% M.C. by IR

Persistent foam

ETU(ethelyne thio

urea)%

Mn content%

Wet sieve test %

Retention test

Fig 20

Quality plan& Sampling for key raw materials:

Criteria for approval: Based on supplier’s COA

1. CS2

2. EDA3. MnSO4 sol.4. ZnSO4 sol.5. Sodium lingo sulphate(SLS)6. Hexamine ( also based on solubility)

MnSO4 monohydrate powder- appearance, pH, organic impurity, purity, COA,

Caustics soda lye- appearance, assay

Quality plan & Sampling plan for packaging materials:

Parameters:

For Multiwall laminated yellow paper bag (25 kg) imported

Visual inspection for colour printing Measurement of dimension Weight of 2 bags

For Multiwall laminated yellow, white, green, red paper bag (25 kg & 10 kg) Indian

Visual inspection for colour printing Measurement of dimension Weight of 2 bags As per supplier’s COA

For corrugated fibre board sheet 44” x 44” for export

Visual inspection 36

Measurement of dimension As per supplier’s COA

HMHDPE 120 lt. full open top drums

Visual inspection Measurement of dimension As per supplier’s COA Weight of 2 drums

LDPE Poly liners for 120 lt. Full open top drums

Visual inspection Measurement of dimension As per supplier’s COA Weight of 2 drums

LDPE cover (44”x44”x12”)

Visual inspection Measurement of dimension As per supplier’s COA Weight of 2 covers

Pine wood heat treated wooden pallets

Visual inspection Finishing physical defects like knots, poor nailing, etc Measurement of dimension As per supplier’s COA

Liner carton for Manfil vacuum pack (1 kg & 500 gm)

Visual inspection for colour and printing weight of 2 packs Measurement of dimension As per supplier’s COA

For corrugated fibre board boxes for small packing

Dimensions of 2 boxes As per supplier’s COA

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CHAPTER 6

LOGISTICS AND DISPATCH

Departmental Structure

Fig 21

MAIN ACTIVITIES OF DISPATCH AND LOGISTIC

Following is the main activities of warehouse:-

To maintain mini/max level of inventory

To make procurement plans for imported and local raw material.

Coordinating Raw material inventory with the purchase department

To ensure safe operation in ware house.

Adherence of Customs (SEZ) laws.

To update and maintain all the documents.

Timely dispatch of material according to marketing department.

To maintain proper housekeeping in warehouse.

Coordination with other department to ensure smooth functioning.

Shifting of FG from plant to warehouse and stacking to the Godrej Racks.

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Head of the department

Sr. Executive

Officer

Field engineer

Field Engineer

Officer Officer Officer

MODE OF DISPATCH

Mode of dispatch is based on two types of sales made by the Indofil are as follows:-

Note: 90 % to 95% of finished goods are exported.

For Domestic sales- Road transportation

For Export sales- from Dahej plant to Mumbai Port by Road transport and from there

to different countries through ship vessels.

Sources of mode of dispatch

ROUTING OF INVOICE and DISPATCH PROCEDURE

Documents required:

Commercial invoice

Shipping bill

Certificate of analysis

LR copy (lorry Receipt)

Gate pass

402 form for border crossing

Details of commercial Bill:

Party name

L C no.

Material description

Shipping mark

Container no.

Seal no.

Batch no.

Price

Exchange Currency

The invoice generates from the Marketing Department at the Head Office.

From there it is sent to the Plant and the invoice number is generated here.

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Along with that other relevant details are also generated at the plant, namely:

Date of dispatch

Batch number

Shipping mark

Consigner’s name

Container number

Purchase order number

L.C. number

Gross weight

Net weight , etc

This invoice is then verified by the custom office in order to fill the shipping bill, which is

generated there.

These documents are then given to the driver of the container along with the Certificate of

Analysis and a 402 form.

Driver gives these documents to the Main SEZ gate in order to clear the container out of the

gate.

The officer here checks the documents and makes a record at the gate and let the vehicle

pass after verifying them.

After getting cleared from the SEZ gate the container moves towards Mumbai Port where it

is unloaded at a place known as Buffer until the booked ship vessel arrives.

Before loading the container into the ship, all the documents are checked and verified and

then the shipping bill is endorsed by the Custom authority and the container is ready to get

loaded.

Now the ship takes the consigned container to the consigner.

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Dispatch

Fig 22

41

Comes to plantInvoice generates from the Marketting dept. at H.O.

Plant generates the invoice no. and other details

Shipping bill is prepared

Truck reaches to company

Arrange the transportation

Truck inspection

Empty truck weight

He prepare Dispatch document

Truck is out of gate

Gross/Net weight of truck

Handover the invoice and other docs. to transporter

Prepare loading slip

Comes to loading point

Gate entry

CHAPTER 7

STORES DEPARTMENT

Types of stores

There are mainly three types of stores and they are

Raw material store

Engineering stores

Finished goods stores

Classification of material

Carbon disulphide is classified in to ‘3’ category of material.

Ethylene Diamine (EDA) is classified in to ‘3’ category of material.

Finished Product (Mancozeb) is classified in to ‘9’ category of material.

INVENTORY MANAGEMENT SYSTEM

Inventory is managed through Automatic Storage Retrieval System (ASRS).

It is a fully automatic system which reads the barcode of the finished goods pallet and stores

the finished goods according to the space available.

MATERIAL CODING SYSTEM

Since there is only one product manufactured. There is no material coding system applicable

in this plant.

Storage medium

The storage mediums used in the company are:

120 lt. capacity drums

Bags - 1 kg and 500 g capacity. For vacuum sealing

Bags – 50 kg, 25 kg, 10 kg

Material handling within the stores42

Materials are handled within store through forklifts only.

STORAGE PROCEDURE

Receipt procedure:

Whenever raw material, chemicals reaches to the company and in stores, stores

dept. prepares GRN (Goods Receipt Note).

Storage procedure:

As an when goods come to store it is inspected, and if found defective, the item is

rejected and not stored in store dept.

After inspection the goods are sent to the raw material warehouse from where they

are loaded to racks/ shelves where the entry is being made through WMS/ SAP.

Issue procedure:

Goods are issued on FIFO method.

Finished Goods storage Procedure

Once the finished goods reach the F.G. warehouse after the quality check, they are

transported to the ASRS system.

The forklift places the 1 pallet at a time on the rack of ASRS, from where the pallet’s

barcode is read by the machine. Then the machine lifts up the pallet from the rack

and places it on one of the shelves which is empty automatically.

This new FG pallet is recorded in the software used by the ASRS and the entry is

made of the new finished goods.

The bar code on the pallet contains all the required information such as product’s

specification, its manufacturing date, expiry date, etc.

So when the barcode reader reads, it makes the entry.

Issue procedure of finished goods:

The goods are issued on FIFO basis.

When they are required, the operator enters the quantity and the product specification

required to the ASRS software and the ASRS machine brings the appropriate pallet

on the rack and places on it. From here forklift takes the pallet and takes it to the

container or the place from where the goods have to be dispatched. 43

STOCK VERIFICATION

Stock is verified thrice in a month.

CHAPTER 8

ENVIRONMENT SAFETY, HEALTH DEPARTMENT

44

Departmental structure

Fig 23

Main activities of EHS

Towards Environment and Safety

To provide safe environment to all the employees and workers. To prevent accidents in plant. To provide PPE to all the employees and workers and follow the compliance. To provide training to all employees regarding EHS. Investigation and Reporting of all accidents. To properly treat all the waste generated in the plant as per legal compliance Operation of the ETP to meet the Pollution Control Board standards. Proper disposal of hazardous waste. To keep relations with government authorities like Gujarat Pollution Control Board,

factory inspectors Maintain Fire Production Systems.

Towards Health of Employees and Workers

To operate the occupation Health Centres Monitoring of hygienic conditions Monitoring of Workplace environment Periodical Medical check up of employees Maintain First Aid box inside the plant.

45

General Manager

Sr. Manager EHS

Sr. Executive EHS

Resources available for Emergency:

Emergency Response team

First aid Team

Rescue team

Fire Men

Fire extinguishers

Fire hydrant lines

Self containing Breathing Apparatus

Personal Protective Equipments available:

Helmets

Shoes

Goggles

Hand Gloves

Dust masks

Paper masks

Ear Plugs

At times of emergency the company has its own Onsite Emergency Plan which help it solve the problem and to find the route cause as soon as possible

The roles and responsibilities are of the Emergency Response team is pre-defined by the company itself.

Onsite Emergency Control Plan

Classification of Emergencies

A- Smouldering/ localised fire B- Fire in large area/ toxic release/ heavy spillage/ injuries to personnel requiring

hospitalization.C- Major fire- potential to spread/ Explosion/ Bulk leakage/ serious injuries to personnel

– may require evacuation of works partly or wholly.D- Natural CalamitiesE- Environmental emergencies

Handler EmergencyIncident controller A Site Controller B, C, D, E

Fig 24

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Roles:

Roles Person responsible Reporting locationSite Main Controller (SMC) Chief of Unit/Operation.

Mech. Engr. (During odd hrs.)Emergency Control Room

Incident Controller (IC) Shift Production manager Scene of IncidentDy. Incident Controller, Geographical Area In-Charge Scene of IncidentLiaison Officer. HR Manager and or

Security In charge on dutyAt security gate

Emergency Response team/ Medical Services

ERT Member Reach at the scene of incident

Safety In-Charge- Manager Production and Electrical, Utility

Manager / Executive First aid centre

Safety In-Charge Sr. HSE Manager / Sr. Executive Scene of incident Fire pump Operator Utility operator (Cooling tower

pump operator)Fire pump house

Fig 25

CHAPTER 9

ELECTRICAL AND INSTRUMENTS DEPARTMENT


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Fig 26

Activities of electrical department:

Provides continuous power without interruption. Energy saving Providing and keeping Electrical equipment in good condition for better production. Provide reliable service to other departments for electrical equipments.

The power supply is provided by Torrent Energy.

Torrent Energy takes power from DGVCL.

There are transformers of 2500 KVA in the plant and 1250 amp. VCB high tension breaker

There are 2 DG set of 860 KVA on standby in case of power cut emergency.

Activities of Instruments department:

o They are responsible for smooth running operation of plant.

o Maintenance of all field instrument

e.g.:1. Pressure Transmission2. Level Transmission

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Sr. Executive

Officer/ Process Engg.




Contractor / Technician

3. Flow Transmission4. Temperature Transmission5. Gages Transmission

o Maintenance of control system,

e.g. DCS (Distributed control system) o Breakdown Maintenance of all system’s instrument.

o New modification of system /new technology arrive

o New Project /Expansion work.

o Preventive maintenance of all instruments.

o Calibration of all instruments.

CHAPTER 10

MAINTENANCE DEPARTMENT


49

Fig 27

Activities:

Responsible for smooth running and operations of plant.

Maintenance of all Mechanical equipments like:

o Reactors

o Heat Exchanger

o Rotary Vacuum drier

o Rotary Cooler

o Blender

o Spray drier

o Blowers, etc

Breakdown maintenance of all mechanical equipments

Preventive maintenance of all mechanical equipments

Preventive maintenance of all mechanical equipments

To undertake new projects and expansion work.

50

Manager (Mech. Maintenance & Utilities)

Engineer

Technicians for plant

maintenance (5)

Engineer

Technicians for utility operation & maintenance (4)

Engineer

Boiler operator and maintenance

Engineer

Indofil Industries

Documents

Transcript of Indofil Industries