The Travancore Cochin Chemicals LTD.

7/23/2019 The Travancore Cochin Chemicals LTD.

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AN ORGANIZATIONAL STUDY AT TCC

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INTRODUCTION

The organizational study is limited to acquire the knowledge regarding the

function as well as the managerial aspects of THE TRAVANCORE

COCHIN CHEMICALS LIMITED, UDYOGAMANDAL, KERALA.

Organizational study is the systematic study and careful application of

knowledge about how the people as individuals and as groups act within an

organization. An organizational study encompasses the study of organizations

from multiple view point methods, and levels of analysis.

Whenever people interact in an organization many factors come into play.

like all modernist social sciences organizational studies seek to control

predict and explain.

The organizational study was done as partial fulfillment of the requirement

for the award of Master of Business Administration (MBA). The chief

objective of the study id to understand the working of various department

functions during a particular period and the concept of organization.

1.1SCOPE OF STUDY

The study was limited to Travancore-Cochin Chemicals

Limited.,Udyogamandal. The study was to get a general awareness of the

function of the various departments and management of TCC Ltd. The period

available for the study was limited .There are many departments like

marketing, materials, finance, operations and technical services Etc. the

attaining of information about different departments helped to analyze the

strengths , weakness ,opportunities and threats of the company.


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1.2 OBJECTIVES OF THE STUDY

The objective of the organization study includes the following:

To understand the organizational structure and the working of thevarious functional departments.

To have an exposure to the work environment. To understand the overall performance of the company. To make an analysis of the organizations performance. To study the relevance of TCC on chemical industry field in Kerala.

1.3SIGNIFICANCE OF THE STUDY

The main significance of the study are;

The study attempt to understand the performance of differentdepartments.

To understand the quality assurance of the organization.

To understand financial position of the organization.

Getting an organizational exposure. To understand the market position of the organization.

1.4 METHODOLOGY

It is an overall operation framework, which help to collect the required data.

The methodology used in the study involves the collection data through

primary and secondary means within the given time period.


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PRIMARY DATAIt refers to the first data collected from primary sources .The

primary sources of data collection were direct personal

interview with managers of concerned department, official

staff and workers of the company.

SECONDAY DATAData which are not originally collected but rather obtained

from published or unpublished sources includes:

1. Company records2. Annual records3. Official sites of the company4. Internet

The collected primary data and secondary data were

used in the preparation of this organizational report.

1.5 PRINCIPLES OF ORGANIZATION

Principles means the theoretical basis on which something is built up.The

theoretical basis is formulated from fundamental truth. Some of the important

principles to be followed for developing efficient organization are:

Principles of unity of objective Principles of specification Principles of coordination


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Principles of unity of command Principles of span of control Principles of exception Principles of flexibility Principles of simplicity Principles of communication Principles of efficiency

1.6 REQUISITES OF A GOOD ORGANISATION

The organizations are born out of a necessity for clear well defined

system or structure, which people require for execution of their

responsibilities. It helps them to relate to each other, co-ordinate their

activities and achieve the organizational goals. It minimizes confusion natures

suitable and maximizes effectiveness.

For proper function of the organization certain requisites are to be fulfilled

.They are as follows.

The objectives are to be clear, candid and well defined and theorganization must have a capacity to achieve it.

All activities therein must be properly coordinated. Organization must be complete, it should include all essential

activities.


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2.1 INDUSTRY PROFILE

INTERNATIONAL SCENARIO

The world chlor-alkali industry is growing .The chemical industries are

growing faster in the world. The chemical industry plays a vital role in the

production of many manufacturing goods. The industry provides a

tremendous variety of materials to other manufacturers. Major products of the

industry include detergent, drugs, fertilizers, food preservatives, flavoring and

paper , fine chemicals etc.

Most major chemicals are basic chemicals used in many countries .It is used

to produce fertilizer and other chemicals other basic chemicals include

chlorine and sodium hypochlorite.

The production has become increasingly concentrated in multinational

corporations which have plants and offices in a number of countries. To

achieve low cost of production, the companies locate their factories in

developing countries where raw materials are readily available. Many basic

chemicals are produces in developing countries by factories of multinationalfirm. But chemicals requiring advanced production methods are made in

industrialized countries.

In international scene, increased scene, increased production of papers,

aluminum, soap and detergent naturally leads to increased requirement of

caustic soda.

In the world scenario, the Green Peace Movement was seeking the phase out

of chlorine usage, especially the CFC compounds. This has resulted in

closing down in Europe and restricted the production in North American

Plants. With the drop in international production, the International price of

caustic soda was steadily rising. The caustic which was sold for a more 50$

per tones has gone up to 300$ per tones.


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The international market operates in the context of demand supply prevailing

from time to time, situation of surplus and shortage are cyclical as a result of

which international prices is common and drop in import duty often by steep

drop in price of the chemical.

Though the demand for chlorine is growing fast the demand of caustic soda is

not so promising. Hence the units in the gulf and western countries are selling

caustic soda ata cheaper rate.

MAJOR COUNTRIES PRODUCING CAUSTIC SODA

- USA - FRANCE

- RUSSIA - CHINA

- INDIA - GERMANY

- CANADA - JAPAN

INDIAN SCENARIO

In India, caustic soda is produced by electrolysis process. The manufacture ofcaustic soda started during 1940 in the country. The growth was rather slow

during the 1960s and after the growth picked up substantially .Today there

are about 38 chlora alkali units in India.

MAJOR SOUTH INDIAN CHLORA-ALKALI UNITS

Chemplast, Tamilnadu

ChemfabAlkalies Ltd. Pondicherry

Southern petro Chemical Industries Corp.Ltd.Chennai Kothari Petro Chemicals Ltd. Chennai Sree Royal SeemaAlkalies& Allied Chemicals ,Andhra Pradesh BILT, Karnataka DCW Ltd, Metur TCC Ltd, Kerala


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STATE SCENARIO

Caustic soda is one of the basic inorganic chemicals manufactured from

common salt caustic soda; Hydrochloric acid and sodium hypochlorite are the

products.

In the Kerala state, TCC is the only Chlora-Alkali industrial unit and has a

production capacity of 175 MT Caustic Soda per day. There are many small

scale industries in the state which consumes caustic soda for the production of

soap, detergents etc. Because of high transportation cost .it is not possible to

export caustic soda in large volume from the state. TCC is the only one chlor

alkali unit in the state and it is employing environment friendly and energy

efficient technology. Chlorine is a basic material required for water

purification and without chlorine the water workers will not be able to supply

good drinking water to the public.

TCC SERVING THE NATION

TCC is employing 786 persons directly and many more indirectly. Its

products find extensive use in manufacture of day to day consumable articles.

Chlor-alkli products are basic chemicals used in the manufacture of plastic,

paper, textiles, insecticides and pharmaceuticals. Many chemical industries in

the state depend on TCC for supply of caustic soda Hydrochloric acid,

Chlorine & Soda bleach.


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2.2 COMPANY PROFILE

INTRODUCTION

The Travancore Cochin Chemicals Ltd, popularly known as TC Ltd is a state

public sector undertaking owned by the government of Kerala.TCC is

situated at Udyogamandal in cochin Industrial belt. Incorporated in 1951,

TCC is one of the oldest chlora-Alkali unites in the country.TCC is a large

chemical industry engaged in the manufacture and marketing of caustic soda,

chlorine, Hypochlorite acid, soda bleach and related chemicals. TCC is an

ISO 9001-2000 certified company. The company supports a large number of

Industrial units of strategic importance by supplying basic chemicals.

CORPORATE HISTORY OF TCC LTD

The Travancore Cochin Chemicals Ltd was established in 1951 and started

commercial production in 1954 with an installed production capacity of 20

tones of caustic soda per day. The idea of establishing the unit wasconceived by M/s Shehasayee Brothers the managing agent of FACT. This

was for to supply HCL to FACT for making Ammonium Chloride utilizing

Ammonia from their newly started plant. FACT and MCIC (mettur chemicals

and Industrial Corporation) registered as a joint venture company under the

name Travancore Mettur Chemicals (TMC) in 1950. The partnership was

unable to complete the project due to shortage of finance.TMC has taken up

their problem with the Travancore Cochin state government. By that time two

other companies(Hindustan Industries Ltd.(HIL)& Indian Rare Earth

Ltd(IRE)) were setting up their plants at Udyogamandal with a view to

receive chlora alkali products from TMC. As the stoppage of TMC could

affect three major companies the Travancore Cochin State government gave

financial assistance to TMC and the company was renamed as Travancore

Cochin Chemicals (TCC) in 1951.


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Travancore Cochin Chemical (TCC) is the first unit in India to

manufacture Rayon grade Caustic soda. The company has implemented a

number of technical renovations to improve productivity of the plant. They

now use membrane cell Technology for their production. At present TCC has

production capacity of 175 TPD of caustic soda.

PRESENT SITUATION

TCC is the only one chlor-alkali unit in Kerala. In India, there are

approximately 40 Chlor-Alkali units as competitors. TCC owns 109 acres of

land and around 786 employees are working in three shift plants are

functioning by utilizing full capacity. The company has helped in attracting

new industries to Kerala in past like Indian Rare Earth Ltd, Hindustan

Insecticides Ltd, Hindustan News print Ltd , Kerala minerals & Metals Ltd

etc.though assuring the availability of raw materials.

PRESENT CAPITAL FORMATION

INVESTORS SHARE IN PERCENTAGE

Government of Kerala 80%

KSIDC 17%

FACT 2%

Vinly Investment Ltd,Chennai

1%

Total 100%


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INDUSTRIAL INFRASTRUCTURE

The company is conveniently situated at Udyogamandal.Industrial area in

Kerala state on the river bank of Periyar. Out of the 109 acres of land which

the company owns include 20 acres leased out of M/s BSES Kerala power

Ltd on which company receives lease rent. In addition to the plant and

building it has a full-fledged housing colony for accommodation of

employees. The company is having a water treatment plant which draw from

Periyar River with a capacity of 5 mgel.

CORPORATE MISSION

TCC is committed to supply quality chemicals at competitive prices to

customers satisfaction. Concern for environment and safety are our priorities

we intended to achieve,

Utmost level of conservation of all resources including energy.

Cost effectiveness in all operations.

Regular up-gradation of technologies used in processing. Compliance with laws & statutory regulation.

Capacity up gradation by 50 TPD.

Production of Sodium Chloride.

CORPORATE OBJECTIVES

The corporate objectives of TCC Ltd are the following

To produce & Market Caustic Soda and allied chemicals economically and

in an environmentally sound manner.

To maintain optimum use level of efficiency and productivity and to secure

optimum returns on investment.

To maximize profits from projects taken up.


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To continuously improve the plant and operational safety and to work

within the emission limits set up by pollution control board.

To continuously up grade the quality of human resources of the company

and to ensure organizational development.

To ensure corporate growth by expansion and diversification.

To care for the community around.

QUALITY POLICY OF TCC

We are committed to enhance customer satisfaction by providing products

and related services complying with a continually improving quality

management system.

ENERGY POLICY

We are always committed to conservation of energy by all possible means.

To accomplish our mission we strive for :

Technological up-gradation reduce specific energy consumption Conducting energy conservation studies including energy audit & adopting

the apt measures for conserving energy

Contacting other organizations & enriching our experience on energy

conservation

Using renewable energy sources to the external possible

Disseminating knowledge &information on energy conservation to our

employees

Low energy fuels also to be tried depending up on feasibility.


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HEALTH & SAFETY POLICY

TCC is committed to provide a work every one of its efforts tomanufacture high quality products at competitive price. The company

will comply with all statutory requirements in this regards.

The company will provide a work environment in which identifiedhazards are controlled if elimination is not feasible whenever

necessary.

Accident prevention is the direct responsibility of the LineManagement & will be an important criterion for performance

appraisal Line Management will ensure that all safety measure are

incorporated in the operating and maintenance procedure as well as in

any process technology changes in the plant / infrastructure.

Consideration of health & safety will be given proper weight age inselection and deployment of the personnel.

The company will ensure that health and safety aspects are given dueconsideration in decision regarding purchase of plant equipments

machinery and materials.

Every employee of the company shall perform his / her job adoptingsafety and proper work methods and using appropriate safety

equipments understanding that their career advancement is linked

with safe performance.

Contractors, sub-contract workers, transporters and visitors enteringthe factory shall be required to observe health & safety practices ofthe company in all their activities

All contract jobs will be carried only through the laid downprocedures with appropriate supervision


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The company will carry out safety audits, risk assessment studies,emergency mock drills, and periodic assessment of health of its

employee as well as status of environment & implement remedial

measures.

Employee, consumer & public awareness where necessary will beimparted with the required education, training & returning on safety

& health aspects related to the process and products.

The company will include a resume of its health & safetyperformance in its annual reports.

Since the success of the company depends on the health & safety of

its imperative that work place hazards be identified appropriately evaluated

and effectively controlled to achieve this goal whole hearted co-operation of

its is solicited for this.

GROWTH OF TCC

1956 A continuous caustic Fusion plant with a capacity to produce 20

tones of caustic soda per day was added

1958 A chlorine liquefaction plant wa added mainly to meet demand

from the newly set up plant of Hindustan insecticides Ltd

,Udyogamandal.

1960 Production of caustic soda was raised to 30 tons per day

1963 The caustic soda capacity was raised to new level of 40 tons per

Day day. The company established a new unit for themanufacture of SodiumHydrosulphate with rated capacity of

thirty per day raised to 60 Tones per day.

1967 The third stage of expansion capacity was raised to 60 TPD


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1970 A 60 TPD CCF plant was set up. The sets its own water treatment

plant

1975 Fourth stage expansion a new 100 TPD caustic soda plant

employing Mercury cell Technology which was installed from

Germany.TCCstarted its started its own water treatment plant.

1975-80 Exported commercial Hydrochloric acid to gulf countries

1983 Installed indigenously developed plant to recover mercury from

Effluents.

1987 Installed Hydrogen firing system

1988 Replacement of Graphite anodes by titanium anodes

1990 Brine dechlorination unit commissioned

1992 A research and development section was set up

1997 The company commissioned 100 TPD caustic soda plant in technical

collaboration with ASAHI GLASS company of Japan using the

Membrane Cell technology. The advantage of membrane cell

technology was that the energy consumption got reduced by 30%

and avoided the the use of mercury

2000 The company set up a brine purification plant2002-03 The Company was increased its production capacity of membrane

cell Plant 125TPD

2004-05 25 TPD caustic soda plant employing membrane cell technologies

from M/s UHDE, Germany was commissioned

2005-06 25 TPD caustic soda plant employing membrane cell technology

from M/s UHDE, Germany was commissione


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ACHIEVEMENTS

TCC is always in the forefront to adopt and incorporate the latest technology

in its plants. Several innovative and modernization schemes were

implemented to achieve higher production and productivity energy

conservation environmental protection and economy inputs. TCC has been

dynamic to be proactive to market conditions and thus to came out as a

profitable public sector undertaking TCC was bestowed with various awards

for excellent performance with regards to productivity, energy conservation

and environmental protection which is considered as an award for

commitment rather than for efficiency.

1981 Best performance award for safety in the state from directorate of

Factories and boilers, Government of Kerala

1988-89 Best pollution control award under group Heavy Inorganic

Industries In Kerala from Kerala state pollution control board

1989 Award for best performance in safety in India under: chemical

Industries group from national safety council

1989-90 Prize for productivity from Kerala state productivity council1993 Best performance award for energy conservation in the state of

Kerala under group Chemical and Fertilizers above 3000 KVA

from Government of Kerala

1994-95 Best performance awards for the productivity in the state of Kerala

under group Large Industries from Kerala state productivity

council

1998 Best performance award for energy conservation in the state of Kerala

under group Major Industries from energy management centre,

Government of Kerala

1998 Performance award for energy conservation under group Chlora-

Alkali Sector Ministry of power, Government of India


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2003 Kerala state energy conservation award in the category of Large

Scale Industries

2005 National Energy conservation award Chlor Alkali Sector

2008 Pollution Control award from Kerala state Pollution Control Board


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ORGANIZATION STRUCTURE

The organizational structure involves arrangement of activities and

assignment of personnel to these to achieve organizational goals. It is a way

by which various parts of an organization are tied together in a coordinate

manner and it illustrates the various relationship among various levels of the

hierarchy within the organization as well as horizontal relationship among

various aspects of the organizational operations. As well planned

organizational structure results in better use of resources.

An organizational structure is a mostly hierarchial concept of subordinates are

a number of clustered entitles. The structure of an organization is usually set

up in one variety of styles, dependent on their objectives and ambience

organizational structure allows the expressed allocation of responsibilities for

different functions and process to different entities. A good organizational

structure is needed so that:

a. Each individual in the organization is assigned a role , responsibilityand necessary authority. Each person who is assigned to an activitymust know his position, his role and relationship with others.

b. The activities of all individuals are coordinated and integrated into acommon pattern in order to achieve the organizational objective.

Organization is needed for the purpose of integration of diverse

activities in a cohesive manner.

c. The optimum use of human skill and efforts is achieved. It helps insmooth operations and smooth flow, thus avoiding bottlenecks, idle

time and idle machine.

The organizational structure of TCC is shown in the figure. The present

organizational structure of the company has proven to be effective in

conducting operations at its optimum level. The staff structure encourages

team work and good internal relationship. Unity of command is

maintained throughout the organization.


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2.3PRODUCT PROFILE

Caustic soda, Chlorine, Hydrochloric acid, Caustic soda flakes and sodium

hypochlorite are the products of the company. Caustic soda, Chlorine and

Hydrochloric Acid from the backbone of chemical industry. These are

impotent to the countrys economy very much like steel and cement. Major

products and their production capacity is explained below;

MAJOR PRODUCTS AND PRODUCTION CAPACITY

PRODUCTS PRODUCTION CAPA CITY

(TONES PER ANNUM)

Caustic Soda Lye 57,750

Liquid Chlorine 23760

Commercial Hydrochloric acid 1,27,742

Caustic Soda Flakes 33,000

Sodium Hypochlorite 15,000

TCCs main raw materials are common salt (sodium chloride), electricity and

water. The company requires about 2650 units of electricity and 1.72 tons of

raw salt per tones of caustic soda produced common salt is mainly produced

from Kacch in Gujarath and Tamilnadu.


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PRODUCT: 1

CAUSTIC SODA (NaOH)

It is a basic alkali. It is used in the manufacture of products like soap,

paper, and textilesetc. caustic soda lye obtained from membranes cell is

a clear colorless, odorless and soapy liquid. TCC is producing two type of

caustic soda lye of concentration 32% and 50%.

USES INDUSTRIES

SERVED

A chemical for dissolving out extraneous matter

from

Wood for preparing pure cellulose and for the

preparation

Of alkali cellulose and for the production of

viscose

Solution

Rayon & Rayon Pulp

A chemical for preparing pure cellulose by

dissolving out extraneous matter.

Paper, News print &

PulpAs saponification agent Soap

In bleaching, dyeing and mercerizing Textiles

As cleaning agent Heavy chemicals

For refining petroleum fractions Petroleum refining

Reagent for production of various organic

chemicals

Minerals and rare

earth elements


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PRODUCT: 2

CHLORINE (Cl2)

Chlorine, a co-product obtained in the manufacture of caustic soda is an

equally important basic chemical. It Is a renowned water purifying chemical.

It is a greenish yellow gas. Chlorine is sold after liquefying. Chlorine has got

a pungent smell and liquid chlorine is amber in colour.

USES INDUSTRIES

SERVED

Producing insecticides (DDT,BH etc)and

pesticides

Insecticides

Purifying drinking water and sterilizing sewage

effluents.

Water purification

As a bleaching agent Sugar, paper & pulp,

Textiles

For manufacturing PVC and allied co-polymers Plastics

For producing a variety of organic chlorine

compounds

Fine chemicals

For upgrading titanium contents Mineral processing


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PRODUCT: 3

HYDROCHLORIC ACID (HCL)

Hydrochloric acid produced by TCC is of high purity and finds application in

number of chemical industries and it is yellowish green in colour. The HCL

produced has concentration 30-33%.

USES INDUSTRIES

For the production of Ammonium Chloride and in

manufacture

of Phosphoric Acid

Fertilizers

A cleaning agent in galvanizing Engineering

For hydrolyzing starch in to sugar Starch industry

In monazite processing for the separation of rare earths

as chlorides

From thorium

Minerals

processing


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P RODUCT: 4

SODIUM HYPOCHOLRITE

Sodium Hypochlorite, commonly known as Soda Bleach, finds its application

in bleaching, as a disinfectant and also in the extraction of rare earth

elements. It is a pale yellowish colour liquid. Soda bleach is the only branded

product of TCC. TCC is producing soda bleach under the brand name

Ekoclean .

USES INDUSTRIES

SERVED

As a bleaching agent Textiles, pulp and

papers

As a germicide and cleaning

agent

Hospitals

For sterilization Hospitals

PRODUCT: 5

CAUSTIC SODA FLAKES

Caustic soda lye is concentrated to 98-99% NaOH and converted to flakes in

a continues, Caustic fusion plant (CCF). It is a white deliquescent solid in

flakes form. Caustic soda flakes have also the concentration 98-99% NaOH.


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DEPARTMENTAL STUDY

3.1 HRD / TRAINING DEPARTMENT

Department structure

Human resources is considered as the most vital asset of an organization.

TCC has a well defined employee power which helps the organization to

perform well in the markets. Human resource department is headed by

manager (HRD). He is responsible only for training and development

M(HRD) id reporting to Assistant General Manager (HR).

DF

AGM (HR)

M (HR&W)

DM CS

PROAPO


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MAIN FUNCTIONS OF HR / TRAINING DEPARTMENT

a. Identifying training needsb. Arrangement requirement trainingc. Maintaining the training record

SCOPE

The procedure covers all aspects of training. Arrange suitable trainingfor employees for updating skills based on the identified training

needs.

Training advisory commitment is responsible for suggesting trainingrequirements of the various department and disciplines

Formulating training programs on yearly basics. The committee propose a training calendar every year Training needs for the years are identified and recorded by the

department the head.

The details are handed over to the training department by respective

department head. Training department does compilation of the identified

training needs of the employees. Necessary training programs are arranged by

training department to later the identified training needs of the employees.

Training department organize training programs using internal faculty or

engaging faculty from reputed organization. The training department in

consultation with concerned department heads organizes in house training

programs on special requirements. When employees attend training programs

conducted in house. A feedback about the usefulness of the training is

obtained and consolidated. The concerned department had evaluates thefeedback from the participants after a period of 2-3 months to ascertain the

effectiveness of the training program.


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Employees are also sent for training to other reputed institutors nominations

for sending employees for training in such institutions outside the company

are put up for approval of the appropriate authority as per the guidelines

outside programs submits a feed back on the trainee undergone the training

department.

The achievement against annual training calendar is reviewed half yearly by

department helps for the number of programs held, number of employees

participated for each programs the highlights of training effectiveness,

feedbacks..etc.

The training department maintains a register on the training program attended

by the employees. Training department maintains the format received from

participants after getting it evaluated by the concern department head

regarding the effectiveness of training. The managerial personnel of the

company are imparted training to improve their managerial capabilities at the

HRD center of the company and outside institutes depending upon the needs

identified by the head of the department.

TCC use both on the job and off the job training methods fo training theemployees.

GENERAL TRAINING

In order to provide this type of training, one has to determine what is the

trainees growth potential, up to what level to be done and requires evaluation

of his present performance.

NEED BASED TRAINING

Need based training will be done on the basis of determining the level of

knowledge and skill one requires for a job. Next is to find out how many

employees have to be given this training. On the basis of these needs training

is given to the employees.


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CUSTOMER TRAINING

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

various situations.

INDUCTION TRAINING

It is the training provided to the newly recruited employees to familiarize

them with the activities, rules and policies of the organization. It is also done

to introduce the new employees to the other employees of the organization.

TECHNOLOGY TRAINING

Company provides advanced training for workers to cope up with the

technological changes. Feedback is obtained from employees and

effectiveness of the training program is ascertained after a period of 2-3

months.

PERSONALITY DEVELOPMENT PROGRAMME

They are conducted on a regular time period for the development of bothworkers and managers.

INTERNAL TRAINING

Every month three day training program is held for workers. The workers

education center, under the central labour industry conducts it. These

programs are conducted on a contract basis and are recorded annually 20-25

workers from various sections are selected every month and 4-5 officers from

WEC conduct the training programs. The topics covered include personality,

management development, inter personnel relations, impact of globalization

effective communicationetc.


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Other in house programs are conducted by agencies like Kerala state

productivity council. In such programs company can decide upon faculties

and topics for training. During the installation of membrane cell plant,

officers were sent to Japan for training. So on the job training is prevalent in

all sections of the company.

EXTERNAL TRAINING PROGRAM

These programs are provided for workers conducted mainly inside Kerala and

a few numbers outside Kerala also. The management does not keep aside a

budget for training need. On an average TCC spends more than 11 lakh

rupees on the training needs every year.

OBSERBVATION OF HRD

HRD department organizes training programs using internal faculty or

engineering faculties from reputed organization. TCC should see to it that

training needs of the works, supervisors and executives are recognized and

separate training program should be developed for each groups.

PERSOANL DEPARTMENT

Managers 103

Others 683

Total 786


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FUNCTIONS OF PERSONAL DEPARTMENT

1. Recruitment: through professional and executive employmentexchange and P.S.C

2. Manpower planning: ascertaining the number of vacancies3. Welfare functions: including statutory and non statutory welfare

measures.

4. Grievance handling: as per the provisions of Industrial Disputes Act &factories act

5. Maintaining company discipline: as per standing order act6. Industry relations7. Public relations8. Job descriptions (Techniques)9. Job specifications (Techniques)10.Job analysis (Techniques)11.Performance appraisal12.Training13.

Staffing

14.Formulates and implements personnel15.Wage and salary administration16.Filing various returns relating to employees17.Medical reimbursement schemes


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PROMOTION POLICY

It is divided into two parts.

a. Managerial Promotion Policy:This is on the basis of a stipulated length of service in the immediate lower

grade and it is the main criterion for promotion. Promotion from workers

category to officers grade shall be ordered only with board resolution and

with permission of government. Time bound grade promotions are considered

in the case of lowest tow managerial scales period of 10 years service can be

considered for promotion.

b. Non- Managerial Promotion Policy:Vacancies are to be filled by line recruitment through PSC and will be filled

as per the policy and procedure lay down through the term of settlement.

If a prospective employee has the minimum qualification and stipulated

service then he is considered for promotion. If qualified persons are not

available for promotion in the respective section/ department. It is notified on

the company board. Candidate with the same grade and stipulated length of

service considered are not found available after test, a lower grade personwith stipulated service can be given double promotion.

WAGE AND SALARY ADMINISTARATION

A sound plan of wage and salary administration seek to establish a fair and

equitable compensation offering similar pay for similar work. Actually the

settlement of wage and salary is done by the accounts department. The trade

union / management will decide how much to pay for each employees and

workers regarding his performance.


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OVERTIME ALLOWANCE

Wage covered under the Factories Act will be given as overtime wages.

According to the provision contained in the Factories Act and the ruler

framed thereafter. The overtime wages for workers will be two times of

effective wages.

SHIFT ALLOWANCE

There are namely 3 shifts. Shift allowances to workers, who are working in

shift are

Shift Allowances

8-4 Shift Rs.8/Shift



WELFARE PROGRAMMES

Labour welfare measures in India can be classified as statutory and non-statutory. Statutory welfare comprises those provisions which are binding on

employer by law. This relate to certain essential working conditions and

standards of health statutory welfare measures provided are accident benefit,

annual bonus, drinking water , lunch rooms, sitting facilities, storing and

drying facilities ,health facilities and educational allowance. The non-

statutory welfare programs provided voluntarily by employer and housing

facilities, medical attendance schemes, group accident policy, productionbonus, voluntary retirement schemes and performance appraisal.


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GRIEVANCE REDRESSAL

Grievance Redressal committee is statutory. It is to be legally maintained.

Trade unions are satisfied with the present condition. Hence in TCC

Grievance Redressal Committee is not there, as here exist a good employee-

employer relationship. Grievance Redressalcommittee consists of an

experienced and efficient team of personnel department. And also the moral

level of employee is very good.

TRADE UNION

There is no labour unrest in the company for the past few years. An

atmosphere of trust and mutual understanding is developed between

management and labour union. TCC Employees Association is the only

one union in TCC which is recognized.

WORKERS PARTICIPATION IN MANAGEMENT

TCC encourages its workers to take part in the management of the company.

The workers are often consulted through their union while implementing

major welfare programs of the company.In addition to this the workers are also included in some of the committee for

taking management decision, which includes committees like:

a. Canteen Management Committeeb. Safety committeec. Grievance committeed. Tri-Party Committeee. Provident fund trust


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3.2 MATERIALS DEPARTMENT


Manager Materials is the head of the department. He is responsible for all

functions related to purchase, stores and inventory control. Materials

department is divided into three sections.

1. Purchase section2. Stores section3. Inventory Control section

DF

AGM

M P

DM (P)

ASS.

MM (S1) M (S2)


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PURCHASE SECTION

Purchase procedure:

- Receiving MPR- Evaluation of the MPR- Inviting tender from various organization- Evaluation of the tenders and prepare a comparative statement- Send tenders to the originator of MPR for recommendation- Issue purchase order as per the recommendation of the originator

Purchase section deals with:

- Purchase of stock items as required by inventory control- Purchase of maintenance items as required by the maintenance

planning and plant

sections.

- Purchasing of raw materials required for the process- Purchase of bulk consumable for the process- Purchase of demanded items- Payment against delivery through bank

STORES SECTION

Store section deals with:

- Maintaining a minimum stock of items required by variousdepartments

- Issuing of stock items required by various departments according tothe materials request (MR).

- Preparation of various reports like: Receiving report Inspection reports Evaluation of MPR for purchase of new items Preparation of materials code system (10-digit system).


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INVENTORY CONTROL SECTION

Inventory control is an essential function of stores department. It helps to

reduce cost and increase profit of the organization. Codification of material is

done by manager inventory control. For controlling the inventory, certain

levels of inventory such as maximum, minimum and re-order level is

prepared. When the stock reaches the re-order level, purchase request is

made.

INVENTORY CONTROL

The purpose of inventory control is to avoid surplus and security of materials.

The inventories items are classified based on value contributed by each items

depending on the cost of and turnover of materials.

OBJECTIVES OF INVENTORY CONTROL

- Avoid unwanted pilling up of inventory- Material identification to avoid duplication- To maintain records- To dispose scrapped items-

To determine which and how much to replenish- To determine the items to be stored

FUNCTIONS OF INVENTORY CONTROL

Maintaining a minimum stock of items required by various departments.

Preparations of various reports regarding inventory such as:

Receiving reports Inventory ledger

Inspection report Evaluation of MPR Preparation of material code system to verify items and for

easy handling


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Fix various levels such as minimum level, maximum level, re-order level, damages level etc. of each items.

Calculate and minimize lead time Separate materials into Indian/import


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3.3 OPEARATIONS DEPARTMENT


Operations department carries out the manufacturing of all the products. The

company carries out continuous productions and hence this department plays

a very crucial role in TCC.

This department is headed by Assistant General Manager Operations who is

reporting to General Manager Technical.

GMT

AGM OP

M ( PL1) M (PL2)

DM (PR1) DM (PR2)

SE SE

PE PE

Ex. Tr. Ex. Tr.


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DUTIES & RESPONSIBILITIES OF ASSISTANT GENETAL

MANAGER OPERATIONS:

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

requirement

He is responsible for modification in the production process andresponsible for the affluent discharge

He is the designated emergency controller during any hazardousincident of leakage & emission of toxic gasses/ fluid etc.

DUTIES & RESPONSIBILITIES OF PLANT MANAGER

Custodian of plant He will plan production activities to meet the production of target set

by the AGM (OP).

He is responsible for the material consumption He plans the shutdown activities and carries out maintenance work of

the plant

He co-ordinates the operational functions with the manager of otherdepartments for the smooth functioning of the plant.

OBJECTIVES OF OPERATIONS DEPARTMENT

Maximize production confirming to production specification Optimizing the consumption of electricity and purification of

chemicals

Maximize the production overheads Maximize the availability of electrolysis for operations


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PLANTS IN TCC

There are three plants involved in the electrolytic production process of the

company.

1. AGC Plant

Thisplant is designed by ASAHII GLASS COMPANY

LIMITED, TOKYO, JAPAN. The plant was commissioned on 29th

may 1997. The products are Caustic Soda , commercial Hydrocloric

Acid, liquid Chlorine and Soda bleach. The plant consists of 20

electrolyzes. The plant has 125 TPD Caustic Soda production

capacities.

THE OVERALL PRODUCTION CAPACITY OF TCC

PRODUCTION CAPACITY

Caustic Soda Lye 175 TDP

Liquid Chlorine 72 TDP

Commercial HCL 387 TDP

Soda Bleach 45 TDP

Caustic Soda Flakes 100 TDP

2. UHDE 1 Plant The plant is designed by UHDE, Germany. The

plant was commissioned in 2005. The plant has a production capacity

of 25 TPD of Caustic Soda. It consists of one electrolyze with 54

elements.

3.

UHDE 2 Plant

This plant is also designed by UHDE, Germany.The plant was commissioned in 2006. The plant has a production

capacity of 25 TPD of Caustic Soda. It consists of one electrolyze

with 54 elements.


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RAW MATERIALS USED

Raw materials used in the production process in TCC are

1. Common Salt (raw salt)2. Electricity3. Water

TECHNOLOGY USED FOR PRODUCTION

The technology used by TCC is Membrane Cell Technology which is

environment friendly and energy efficient technology.

PROCESS FOLLOWED

The process followed in production by TCC is electrolysis of Brine.

PROCESS DESCRIPTION

Brine (solution of raw salt & water) saturation & purification process are

common for AGC, UHDE 1 and UHDE 2 plants.

STAYS IN THE PRODUCTION PROCESS1. Brine saturation and primary purification Sodium Chloride or row

salt is fed into the saturator using the bucket elevator, where it set mixed

with the Chlorine decomposed, depleted Brine. This saturated Brine from

the saturator goes to precipitation tanks A & B and a mixer tank where

Barium Carbonate Soda Ash and Caustic Soda are added respectively to

remove Sulphates, Calcium and Magnesium. Impurities as precipitates.the

Brine along with the precipitates then goes to the clarifier where 90% of

the precepts are allowed to settle. The clarified Brine is passed through

Anthracite filters where the remaining 10% precepts are separated.

HCL is added to the filtered Brine tank to convert impurities to ionic

form. Brine is to be admitted to the secondary purification system

only after the desired purity level is attained.


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2. Secondary brine purification The secondary Brine purification system

consists of our ion exchange filters. The primary purified Brine is passed

through the Ion exchange filters where it undergoes Ion exchange process.

Ion exchange materials are insoluble acids & bases, which when

converted to salt remain insoluble.

These ion exchange materials are used in columns in which the

solutions containing ionic impurities like Calcium and Magnesium are

in contact with the resin bed. The saturated resin is then regenerated to

its original state by acid alkali solution. The regenerated resin is then

reused. The purity of the feed Brine in the membrane cell process is

very important as it affected the performance and life of the

membrane.

3. Electrolysis The secondary purified Brine is passed through a heat

exchange, fed to Brine head tank and is admitted to the anode

compartments of the electrolysis. Dematerialized water is also admitted to

the cathode compartment of the electrolysis. Direct current (DC) supply is

connected to the anode and cathode. During electrolysis Caustic Soda Lyeis produced at cathode which is 32% concentration. Hydrogen gas is also

formed at the cathode chamber. Chlorine is formed in the anode where the

depleted Brine solution comes out. Caustic Soda is pumped into storage

tank and Hydrogen and Chlorine gas goes to their respective treatment

section.

4. Chlorine treatment & liquefaction Chlorine treatment and

liquefaction involves cooling, washing filtration, drying, compression

liquefaction, storage and liquid Chlorine filling in the cylinders, the

Chlorine from anode chamber of the electrolysis is first cooled at 30

degree celcious with the cooling tower water. Final traces of salt is


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removed by using a wet Chlorine filter, it is then again cooked using

chilled water. After this the Chlorine gas is divided into two streams for

the HCL synthesis and for liquefying. The Chlorine for liquefaction is

dried using 98% Hydrochloric acid in drying tower. The dried Chlorine is

compressed using acid ring compressors. The compressed Chlorine gas

turns into liquid Chlorine storage tanks. Chlorine for the HCL synthesis

unit is fed by using chlorine blower.

5. H2 treatment and HCL analysis Hydrogen gas from the electrolyser is

washed with water in washing chamber, cooled using tower water and

admitted directly to Hydrogen blower, after separating the condensate.

The Hydrogen gas is used for the HCL synthesis and also as a fuel in the

CCF plant.Hydrogen for HCL synthesis is fed to the oven using Hydrogen

blowers. Here it is burned in the presence of Chlorine. The resulting HCL

gas is absorbed in the water flowing down the oven to produce 31%

commercial HCL gas.

6. Continuous Caustic fusion It is done in CCF (continuous caustic

fusion) plant. CCF plant is mainly for concentrating 32% NaOH lye to50% NaOH lye and then to 98%-99% NaOH melts which is converted as

flakes. The 32% NaOH lye is stored in the main storage tank, as a part of

which goes for sale. The remaining part of 32% lye is passed through

three evaporators Ev1, Ev2, Ev3.

In the first evaporator the Caustic Soda lye is heated using vapours generated

in Ev2 and Ev3.the steam generated in Ev1 is then drawn by a vaccum pump

through a condenser and thus Ev1 is working under vaccum and at 70-80

degree celcious. The outlet from Ev1 is 40% Caustic Soda lye which is

passed through Ev2 where it is evaporated to 50% Caustic Soda lye using 9

kg/-cm2 steam from boiler. A portion of 50% Caustic Soda lye cooled and

sold.


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The remaining portion of 50% Caustic Soda lye is pumped to Ev3

where it is heated using heat transfer salt which is a mixture of 53%

Potassium Nitrate, 40% Sodium Nitrate and 7% Sodium Nitrate. In Ev3 the

50% Caustic Soda lye is concentrated to 98%-99% Caustic Soda melt which

is converted as Caustic Soda flakes in a flakers drum.

7. Soda Bleach preparation Excess of waste Chlorine cant be disposed

as a waste gas. But it has to be absorbed in dilute Caustic Soda lye to

produce Soda bleach. Thus the Soda bleach plant serves also as a

pollution control system.

A part of 32% Caustic Soda lye, chlorine is used for the preparation of

Soda bleach. The excess Chlorine at the time of plant shutdown or startup

and also from cylinder filling station goes for Soda bleach preparation,

32% Caustic soda lye is diluted using de-mineralized water. The solution

is passed through two absorbing towers, where it reacts with Chlorine gas

so as to produce Soda bleach.


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3.4 TECHNICAL DEPARTMENT


There are two main sections in this department:

1. The Technical Service sectionThe technical service department is concern with the monitoring of

production process. This includes making a comparative analysis if anydeviations are found.

GMT

DGM (TS)

AGM (TS)

CE (TS) DMTS (M) DMTS (C ) SETS ( C )


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Reports are maintained on daily as well as monthly basis and

internal as well as external basis. The reports are sent to all other

departments.I. Daily report includes the following:

Daily production detailsMaterial consumption details

Sales Stock Power consumption Over time reporting etc.

II. Monthly internal reports include the following: Production process report Material balance Chlorine utilization Raw salt analysis etc.

III. Monthly external report includes reports to variousGovernment department and other agencies, productioncalculation and reporting.

Computerization & IT development

All functional areas are fully computerized. That is function wise, all

functions are fully computerized. But in depth wise TCC is trying to increase

the depth of computerization. The software in use is clipper and paradox. The

server configuration is IBM X 220 and the server capacity is 18GB hard disk

running on Novel 4.11 operating system. The server class machines are P3, 1

GHz, 128 MB RAM, 18 GB hard disk plan to install Oracle based software

for all the departments. Presently there are two Local Area Networks (LAN).

One pertaining to financial data which is called financial package system and

the other related to the materials package system and the other related to the

materials managements, which is the materials management system.


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2. Safety & Pollution control systemThe safety policy of the company states that:

TCC is committed to provide every one of its employees & therelated public an accident free and healthy environment in its efforts

to manufacture high quality products with all stationary requirements

in this regard.

The company will provide a work environment in which identifiedhazards & controlled if eliminations not feasible and will provide

personal protection requirements like gloves, file mask welding

shield, safety shoes, helmets, safety belt, skin protective

ointmentsetc .whenever necessary.

Accident prevention is the direct responsibility of the linemanagement and will be an important criterion for performance

appraisal. Line management will ensure that all safety measures are

incorporated in the operating and maintenance procedure as well as in

any process technology changes in the plant.

The company will ensure that health & safety aspects are given dueconsideration in decision regarding purchase of plant equipments

machinery & materials.

All contract job will be carried only through the laid down procedureswith appropriate supervision.

The company will carry out safety audits, risk assessment studies,emergency mock drills, periodic assessment health of its employees as

well as status of environment & implement remedial measures. Employee, consumers & public awareness where necessary, will be

imparted with the required education, training & retraining safety and

health aspects related to the process and products.


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Contractors, sub-contractors, workers, transports & visitors enteringthe factory shall be required to observe health and safety practices of

the company in all their activities.

The company will include a resume of its health and safetyperformance in its annual reports.

FUNCTIONS OF TECHNICAL SERVICE DEPARTMENT

1. Deviation analysis of plant operating parameters.2. Collection and computation of production details, raw materials, input

output details.

3. Downtime or failure analysis of plant and equipment and providingtechnical advice.

4. Preparation of monthly raw materials and input output details.5. Give suggestions on corrective action to avoid downtime of

equipment.

6. De bottle necking to improve production and efficiency of operation.7. Organizing energy audit and implementation of energy saving

schemes.

8. Preparation of schemes for improvements or modification of process,plant and machinery.

9. Vetting of proposal originated by other department.10.Inspecting or testing of equipment for the plant.11.Study and report on process upset accidents if any etc.12.Any other job specifically assigned by management.


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POLLUTION CONTROL

The company is fully aware of its social responsibility and committed to

protecting and conserving the environment. In line with this, the company is

carrying out various schemes including extensive pollution control measures,

on site emergency planning, training of employees and customers on accident

prevention and safe handling of chemicals. The company aims to minimize

all adverse environmental and health. Impact arising out of its operation,

converse all kinds of resources and to obey all statutory and legal regulation.

Acidic and alkaline effluent steams are collected in pits. If the Sodium

Chloride content in the acidic stream is within limit. It is used in

Hydrochloric acid. The remaining effluent are mixed and neutralized. The PH

is corrected to 7 with extra acid/alkali addition. It is then fed to the lagoon

where better homogenization of effluent takes place. Also Sodium Bisulpahte

solution is added to the Chlorine content. Thus the effluent let out to the river

is neutral and free of Chlorine content.

Also the Chlorine gas during plant start-up and shutdown tripping of Chlorinecompressor, from Chlorine cylinder filling station is collected and absorbed

in dilute Caustic Soda lye to produce Soda Bleach which is sold to the

consumers. Thus the Soda Bleach plant helps in avoiding pollution.


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3.5 ENGINEERING DEPARTMENT


GMT

AGM

SE (MP) SE (M)

CE

DM

Ex. Tr. Ex. Tr.

CE (M)

DM (M)

CE

DM


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The Engineering department has been divided into four sections.

1. Electrical Department2. Mechanical Department3. Instrument Department4. Civil Department

ELECTRICAL DEPARTMENT

There are two functions for this section. They are as follows:

a) OPERATIONSElectrical supply is received from KSEB through substations.Direct Current (DC) is needed for electrolysis and Alternating

Current (AC) is converted into DC in rectifier plants. AC is

used for auxiliary purpose. The following are the function of

the operational section.

Ensuring uninterrupted powersupply

Man management.b) MAINTENANCE

This section is headed by chief engineer in planning and

implementing on engineering works. This section also

provides assistance to project development of new project.


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MECHANICAL DEPARTMENT

Mechanical section found to be the back bone of TCC. All types of annual

maintenance is handled by this section and look forward to maintain the

machinery in the best possible manner and ensure healthy and sound flow of

workers within the organization.

Following are some of the objectives:

To ensure all equipment engaged in production are in goodcondition

To cut down tine of critical equipments To reduce cost due to inefficiency in equipment handling.

INSTRUMENTATION DEPARTMENT

The main functions of this section are as follows:

Plant processing operation and control of plant andequipment.

Keeping record for it The maintenance of up keep of equipments.

CIVIL DEPARTMENT

Civil section is an independent department headed by chief engineer.

The main role of this section is the construction of the building and other

premises of the company. It is also engaged with the social task to ensure thesmooth flow of industrials activities.

The main functions of this section are as follows:

Maintenance of existing building. Painting and insulation Tender issue for civil workers.


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PROJECT AND SYSTEMS DEPARTMENT


The main function of the projects and systems department is capacity addition

and implementation of new technologies. It is an independent unit with a

different function. Their main functions to prepare feasibility reports and to

invite tenders for execution of new projects.

MAIN FUNCTIONS OF PROJECT DEPARTMENT

Involves planning, feasibility study and implementation of netechnologies

Preparation of detailed reports Preparation of feasibility reports

GMT

DGM

AGM

CE CE PJ

AGM S

DM S

Ex. Tr.


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Evaluation of tenders Invitation of tenders through advertisements Agreements Execution Hand over the new projects to operations department

FUNCTIONS OF SYSTEMS DEPARTMENT

Implementation of new ERP system Maintenance of website Maintenance of all computers Maintenance of all printers and peripherals Maintenance of all networking systems Management of broad band and internet connections


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3.7 SECRETARY AND INTERNAL AUDIT DEPARTMENT


Memorandum and articles of association, certificate of incorporation and

other statutory registers under the Companies Act 1956 are maintained in the

companies registered office at Udyogamandal.

DUTIES AND RESPONSIBILITIES OF THE COM APNY

SECRETARY

Conducting board meeting for the organization The legal interpretation of the profit and loss statement and balance

sheet

Filing returns with registrar of companies

Drafting agreements with the financial institutions under theCompanies Act

Conducting the annual general meeting and extra ordinary generalmeeting if required

MD

DF

CS & IA


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Gratitude function of the organization Providing public information under right to Information Act, 2005 Laison with Registrar of companies, LIC officials and other

government and private agencies.

MANAGEMENT OF THE COMPANY

A board of directors consisting of one managing director, director finance andthree other part time directors of the company.

Company has seven shareholders. They are Government of Kerala, FACT,KSIDC, SHL Trading Ltd and two independent nominees from Governmentof Kerala.

INTERNAL AUDIT

The internal audit system in the company has been established since long.The Internal Auditor reports directly to MD. The staff of the departmentincludes one stock verifier and two senior assistants.

FUNCTIONS

Pre audit of all purchases and contract files Verification of sales orders and related records Verification of payrolls and wage salary of workers, staff and officers Increment proposal of management staff, salary fixation etc Verification of various vouchers, journals, ledgers, and other records

of financial and cost accounts sections.

Operational audit performance, audit, performance, managementaudit etc if necessary


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3.8 MARKETING DEPARTMENT

Department Structure

Marketing department in TCC is product centered with separate personnel

entrusted to each product. TCC is the only chlor-alkali company in Kerala.

So firm has more or less monopolistic market in Kerala. TCC gives primary

importance towards satisfaction of its customers.

Marketing department consist of an office section and an issue section. All

documentation work comes under office section and all works relating to

sales comes under the issue section.

DF

AGM (M)

SM

DM (M)

ASO


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TCC will adopt marketing strategy according to product nature,

market situation, demand of the product etc. TCC gained about 80% of the

market share in Kerala.

MAIN FUNCTIONS OF OFFICE SECTION

Preparation of sales quotation, letters, amendments etc, maintenanceof sales officers register books and other necessary information.

Preparation of sales budget, sales plan, monthly allotment etc,correspondence with parties and follow up of routine and regular

matters.

Preparation of sales order, dispatch and delivery notes etc Upkeep of all files up to date

MAIN FUNCTIONS OF ISSUE SECTION

Preparation of schedule of dispatch and actual dispatch Execution of sales offers Advising parties about the dispatch effected Maintenance of daily stock registers

THE MARKETING MIX

The four Ps in the marketing mix are as follows:

1. Product

Products of TCC include caustic soda, chlorine, hydrochloric acid

& sodium hypochlorite. The industries served are soap, insecticides,

pharmaceuticals, chemicals, mineral processing, disinfectant, textiles,

rubber, water purification and petroleum. The only branded product is

soda bleach and the brand name is EKOCLEAN.


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2. Price

The company has adopted a differential pricing policy. The price

is fixed through negotiation for long term contracts. For small customers,

price is fixed from time to time. An open body named Alkali

Manufactures Association of India (AMAI) fixes selling price for a

particular period. Price of the product is fixed by adding the production

costs, excise duty, VAT & freight charges. Tenders are issued to the

customers with a price quoted and if it turns to be a lowest bid and

satisfies the customers the sales are done.

The major markets are Kerala, Karnataka and Tamil Nadu.

Except caustic soda, all other products are sold in South India. Long term

contracts are being entered with customers. Price concessions are given to

long distance customers taking freight elements into account for

transportation of the product, raw materials and also all other logistic

purpose. Company has given contracts to outside agencies. The contract is

placed for each material and that is done in an annual basis.

3. PlaceChannels include direct selling to customers for caustic soda there

are some agencies outside Kerala for marketing the products. The entire

marketing is done at the company headquarters at Udyogamandal and

there are no other marketing offices. All payments take place through

SBT (State Bank of Travancore). Place is concerned with various

methods of transporting and storing goods and then marking them

available for the customer. Getting the right product to the right place at

the right time involves the distribution system.


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4. Promotion

All the products are industrial products. It lacks a good promotion

policy to withstand competition from private sector. The customers are

aware of the existence of the company and when and how to get the

product. Hence there are no much promotional activities. Marketing

factor is price which depends upon the national and international price.

The company does advertise in some academic and trade journals like

chemical magazine etc. The promotional activities are done also through

the company websitewww.tcckerala.com.

THE COMPETITORS

There are about 40 companies in India, which are producing the same kind of

products that of TCC. In the 40 companies, 12 companies are in South India.

All Chemical Industries are in private sector except TCC.

1. ChemfabAlkalies Ltd, Pondicherry2. Andhra Sugar Ltd3. DCW Ltd, Mettur4. Kothari Petro Chemicals Ltd5. Tamil Nadu Petro Products Ltd6. Southern Petrochemical Industry Corporation, Chennai7. Sree Royal SeemaAlkalies and Allied Chemicals8. Chemplast, Mettur9. Tuticurin Alkali Chemicals and Fertilizers10.Tata Chemicals, Gujarat

MAJOR CUSTOMERS

1. Hindustan Lever Ltd, Cochin, Kerala2. Indian Rare Earths Ltd, Udyogamandal, Kerala3. Hindustan Newsprint Ltd, Kottayam, Kerala4. Hindustan Organic Chemicals Ltd, Ambalamugal5. Steel Authority of India Ltd6. Mysore Paper Mills Ltd, Karnataka
http://www.tcckerala.com/http://www.tcckerala.com/http://www.tcckerala.com/http://www.tcckerala.com/


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7. Kerala Minerals and Metals Ltd, Kollam8. Travancore Titanium Products Ltd, TVM, Kerala9. FACT, Kerala10.Kerala Water Authority, TVM, Kerala

ADVERTISING

Advertising is done in weekly journals, magazines and news papers.

MARKETING STRATEGY

Organization has adopted a strategy for their product nature, market

situation, demand of the product, competition etc. In Kerala TCC is facing an

oligopoly. TCC gained about 80% of the total market share. Market share is

based on production. 60% of the goods produced are sold outside Kerala and

40% within the state.

ACTIVITIES OF MARKETING DEPARTMENT

Whenever a company places an advertisement regarding the requirement of

chemicals like caustic soda lye or flakes with the specification for thechemical payment terms, quantity required, validity period, the companies

that are ready to supply (like TCC) will send tenders to the required company.

This is also known as tender document. In a tender document mainly 2

documents are specified:

a. Technical Bid

This means specification about the quality aspect of the product, how

much quantity can be given within a period as specified by the customer

company. These terms are well explained in the technical bid.


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b. Price Bid

This is a part of the tender document which specifies the basic

prices of the company products. The document rate is given for bulk

purchasers, payment terms are also explained.

Along with this offer is placed the customer company which will be

attracted with Earnest Money Deposit (EMD). This deposit is for the

purpose of assuring the customer company that if they accept the TCC

offer, certainly the product will be supplied to the customer. The deposit

will be refunded by the customer company after the purchase is made.

The EMD is only attached in case of bulk purchase.

After accepting the offer placed by TCC, the customer company

will place a purchase order. The purchase order explains the details of the

product, quantity, basic price... Etc. Sales order is placed and will be

verified by Deputy Marketing Manager. He makes arrangement in respect

of supplying the product to the customer. The acceptance offer is usuallyby selecting the lowest price. From the collected tenders if price by TCC

is higher than any other parties, those parties will be done so as to bring

the price lower. If the price is not lowered, the offer will be rejected.


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3.9 FINANCE DEPARTMENTDepartment structure

MD

FC

DFC

DM (F)

DFM1 DFM2 DFM3 DFM4

AO


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Deputy finance controller is having the overall responsibility of the finance

department. Which include co-ordination of audit, Board meeting and

companytaxation. Deputy finance controller co-ordinates the function of bil

passing establishment section, debt collection, cash and bank.

The internal audit system is carried out in the company by the initial

audit section headed by the chartered accountant. Regular reports are given to

the department heads of taking corrective actions where necessary, which is

submitted to the MD.

The company has an effective budgetary control system. The budgets are

reviewed, deviations analyzed and necessary corrective actions is initiated.

Important variations relating to raw materials, furnance oil, electricity etcare

analyzed and furnished to various levels of management for corrective

actions. The key budget factor isthe power availability which is estimated and

a rough picture of anticipated power shortage is drawn up.

The main function of bill section is passing of bills, which is done afterchecking quotation, order and production receives/ work achieved. Bills are

passed after seeing that materials received is in conformity with the purchase

order.

Finance is considered as the valid part of any business organization. It is

the function which controls the procurement of allocation of funds in the

business operations. In TCC a well developed and effective functional

department is functioning. Deputy finance is the head of the finance

department.


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THE MAIN FUNCTIONS OF FINANCE DEPARTMENT

Generation of funds and utilization of funds Treasury operations Financial book keeping and finalization Cost recording Sales accounting Bill passing Budgeting and financial control Preparation of wages bills Preparation of invoice

SAO confidential is exporting to DFM. Preparation of balance sheet

is done in accounting section. TCC has an exclusive PF trust for their

employees. The company gives money to the trust. Trust invests this

properly. Retirement benefit is issued from here itself. The

companys liability towards gratuity to employees is covered by

group gratuity scheme with the LIC of India.

SOURCES OF FUNDS

To produce and sell there must be adequate finance for raw-material

and other supplies and also to meet day to day expenditure of the

enterprise. The company raise funds by means of equity funds and

borrowed funds. Thwe share capital include authorized, issued,

subscribed and paid up capital. Loans are obtained as term loans from

SBI, IOB, UBI, IDBI and material loans from Government of Kerala.


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ANNUAL TURN OVER OF COMPANY

Year Amount (Lakhs)

2002-2003 7421

2003-2004 9123

2004-2005 8869

2005-2006 10877

2006-2007 12321

2007-2008 9390

2008-2009 12063

SIGNIFICANT ACCOUNT POLICY

a. All revenue cost, assets, and liabilities are on the accrualbasis, exeptv customs duty.

b. Sales include excise duty and sales taxc. Inventories valuation

- Stock in trade: Caustic soda lye and flakes are valuedat works cost or net realizable value, whichever is

lower. By products are valued at net sales realization

during the year.

- Raw materials, mercury, packaging materials, fuel oilstores and spares are valued at weighted average cost.


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SWOT ANALYSIS

STRENGTH

Only Chlor alkali unit in the state

Good record of physical and financial performance in the past. Qualified work force, brilliant engineers, managers and skilled

workers.

No strike reported for the last few years . Companys products are basic chemicals and are considered to

be the building blocks of chemical industry.

The company has 80% market share for its products in Kerala. The company is a feeding industry to other companies. Excellent management labour relation. Strategic location with no other competitors around at present. Availability of water in abundance as TCC is situated in the

banks of river Periyar.

Excellent transport facilities and proximity to nationalhighway, railway line , seaport, and airports as well.

Companys products are basic chemicals and are considered tobe the building blocks of chemical industry.

TCC is a pioneer in the chlor alkali market and has createdreliability credibility among the customers.

WEAKNESS

TCC is a public undertaking. The major decisions of the company have

to be approved by the government which delays the implementations of plans

and there by causing organizational inflexibility. The major weaknesses are;

Lack of profit motive Employee cost is high compared to other firms (competitors) Large consumption of energy , 60% of manufacturing cost is

electricity

Raw salt is available in vicinity so transportation cost is very high


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OPPORTUNITIES

New project of synthetic rutile plant. Rutile companies are reaping bigprofit in the state due to the availability of raw material within the

state. There is a high price in the international market for rutile and

related products.

Economic development of the country may results in higher demandfor the product especially for chlorine in near future

Proposal for a hydel project will benefit TCC and the power soobtained can be utilized for running the plants of TCC. Thus reducing

the cost incurred on electricity.

THREATS

Competition from foreign countries High cost of production Higher in price of electricity The infra structure of the company is obsolete compared to others The import duty of central government is not fair and it caused

periodic fluctuations in the price of the companys product.


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FINDINGS

The major type of customer deal with TCC is pharmaceuticals, soapindustries, insecticides, pesticides, paper industries and rayon

industries.

No strikes have reported for the last 10 years. It shows the relationshipof workers andmanagement as a good one.

Pricing policy of TCC is an average one, according to the standards. The company has a flexible credit policy. They give credit facility up

to 30-45 days and they are getting credit of 60 days from suppliers.

New technology of membrane cell has the advantage of pollution freeenvironment and also if bring about 30% reduction in electric power

requirements.

No major environment pollution has been reported for the past 50%years of operation.

The strength of TCC is the quality of their products services and thedelivery.

Location preference, reference and quality are the major criteria forselecting manufacture.

The customer have reported no rejection of TCC product which showsthe product satisfactions.

The company is depending heavily on electricity and around 60%oftheir product price is for this.


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SUGGESTIONS

The company must give some motivation to the employee in orderto increase the production.

For the smooth functioning there must be a reasonable amount ofworking capital.

The company must take necessary steps to maintain the ratios atstandard level.

Improve the first aid facilities by providing free medicine andtreatment .

The company must activate the research and development cell inorder to have new invention in this field.

The company should conduct market research to find themovement of the products and to identify potential customers.

One of the main raw materials is electricity which is an importantfactor of production of the company. So it better to go for a mini

power plant of its own. The organization hierarchy must be checked to avoid

organizational blocks.


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CONCLUSION

Travancore Cochin Chemicals Ltd,Udyogamandal is a state owned

undertaking engaged in manufacture of basic chemicals like caustic soda,

HCL, Chlorine, Sodium Hyptochlorine etc. These are required by

various industries within and outside the state. TCCs products have

national reputation for quality and the company gives high priority to

customer satisfaction. It is an organic chemical company. TCC takes vital

steps at the right time to make innovations in technological up gradations

as well as organizational improvements, which helped it to face problems

quite effectively and efficiently.

Till 1995- 1996, company had recorded a steady growth in

production as well as in sales. After that period even through the sales

remain on an average. The company could not make any profits. This was

due to the implementation of membrane cell technology in place of

mercury cell technology. The higher electric charges compared with other

states also affected the profits of the company. TCC enjoys a lions shareof the market in kerala and would continue to do so.

The company started the salt up-gradation plant in 1998 which helps

reduction in consumption of chemicals The Research and Development

laboratory of the company helps in conducting a research with a new

technical development. Several innovation and modernization schemes

were implemented to achieve energy conservation, environment control

and economy in inputs.

As per the study conducted in the organization, the capacity of

production is increasing and the company is moving in to more profitable

stages. The days I spent at TCC and created a concrete impression in the

development of my career.

TCC is one of the leading Caustic Soda producing companies in India.

I wish a great technical development and a prosperous future for TCC.


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ABBREVATIONS

MD - MANAGING DIRECTOR

GMTGENERAL MANAGER TECHNICAL

DFDIRECTOR FINANCE

DGM (PJ)DEPUTY GENERAL MANAGER PROJECTS

AGM (HR)ASSISTANT GENERAL MANAGER HUMAN RESOURCE

AGM (MT)ASSISTANT GENERAL MANAGER MATERIALS

AGM (M) - ASSISTANT GENERAL MANAGER MARKETTING

AGM ( R ) - ASSISTANT GENERAL MANAGER RESEARCH

AGM(S & PJ) - ASSISTANT GENERAL MANAGER SYSTEMS AND

PROJECTS

AGM (CP) - ASSISTANT GENERAL MANAGER CAPACITY

PLANNING

AGM (TS) - ASSISTANT GENERAL MANAGER TECHNICAL

SERVICEAGM (E&I) - ASSISTANT GENERAL MANAGER ELECTRICAL &

INSTRUMENTATION

AGM (E ) - ASSISTANT GENERAL MANAGER ENGINEERING

AGM (OP) - ASSISTANT GENERAL MANAGER OPERATIONS

M (HR & W)MANAGER HUMAN RESOURCE & WELFARE

M ( P )MANAGER PURCHASE

M (S1) - MANAGER STORE 1

M (S2)MANAGER STORE 2

M (IC)MANAGER INVENTROY CONTROL

SMSALES MANAGER

DM (CS)DEPUTY MANAGER CATERING SERVICE


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DM (P)DEPUTY MANAGER PURCHASE

DM (M)DEPUTY MANAGER MARKETING

DM (SY)DEPUTY MANAGER SYSTEMS

The Travancore Cochin Chemicals LTD.

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Transcript of The Travancore Cochin Chemicals LTD.