RIPORT ON

ORGANISATIONAL STUDY

At

PHILIP CARBON BLACK LIMITED

Submitted in partial fulfillment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

To

MAHATHMA GANDHI UNIVERSITY

By

MUHAMMED SABITH – A

DEPARTMENT OF MANAGEMENT STUDIESJAI BHARATH SCOOL OF MANAGEMENT SUDIES

(Approved by A.I.C.T.E, New Delhi) Arakkappady.Perumbavoor. Eranakulam

DECLARATION

I MUHAMMED SABITH, here by declare that this project report entitled “An Organizational Study at Phillips Carbon Black Limited-Cochi Unit” has been prepared by me under the guidance of Prof. THOMAS WILSON, JAIBHARATH SCHOOL OF MANAGEMENT STUDIES,ERANAKULAM,COCHI,Affliated to M.G University .

I also declare that the empirical findings in this report are based on the data collected by myself and no part of this report has been submitted by me fully or partially for the award of any other degree, diploma, title or recognition earlier.

MUHAMMED SABITH

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ACKNOWLEDGEMENT

I take this opportunity to express my profound sense of gratitude to all those who helped me in completing this project.

I would like to express my sincere gratitude to MR. Babu Abraham- HR Manager- for granting me the permission to do the project. I acknowledge Mr. Sajee Varghese, Financial Manager , Mr. Varghese and Mr. J.M. Mathew for their valuable guidance and encouragement.

I acknowledge with gratitude to my mentor, Prof. THOMAS WILSON, JAIBHARATH SCHOOL OF MANAGEMENT STUDIES,(Affliated to M.G University) for his valuable guidance, encouragements and creative suggestions in the preparation of this work.

Finally I express my humble gratitude to my friends, parents and others for the encouragement and support given to me.

INDEX

1. NEED FOR THE STUDY

2. OBJECTIVES OF THE STUDY

3. INTRODUCTION

4. HISTORY

5. RESEARCH METHODOLOGY

6. INDUSTRY PROFILE

7. COMPANY PROFILE

8. ORGANISATION STRUCTURE

9. DEPARTMENT

9.1. FINANCE DEPARTMENT

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9.2. PURCHASE AND STORES DEPARTMENT

9.3. PRODUCTION DEPARTMENT

9.4. MAINTENANCE DEPARTMENT

9.5. HUMAN RESOURCE DEPARTMENT

9.6. QUALITY ASSURANCE DEPARTMENT

9.7. WAREHOUSE DEPARTMENT

9.8. MARKETING DEPARTMENT

9.9. LOGISTICS DEPARTMENT

9.10. CENTRAL EXCISE AND OIL DEPARTMENT

9.11. CAPTIVE POWER PLANT DEPARTMENT

9.12. ENVIRONMENTAL DEPARTMENT

10.KEY RESULT AREAS

11.KEY RESULT ACTIVITIES

12.FINANCIAL STATEMENTS

13.SWOT ANALYSIS

14. SUGGESTIONS

15.CONCLUSIONS16.BIBLIOGRAPHY

Need for the study

It has the following needs:

The study attempts to understand the performance of different departments.

To understand the working conditions in the organization. To understand the financial position of the company. To understand the market position of the company.

Objectives of the study

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To know about the organization in detail. To understand the functions of various department. To know about the strength and weakness of the organization To know various products and services of the organization.

HISTORY

Philips carbon black has come a long way since its inception in 1960. PCBL started production from December 1962 by oil furnace the most widely accepted manufacturing process of carbon black patented by its then collaborator and world carbon black leader Philips Petroleum Company USA The collaboration ended in 1978. However PCBL continued its progress by virtue of the ingenuity of its technologists, engineers and sustained R&D activities. In 1988 PCBL entered into a technical agreement with Colombian Chemicals Company, USA, and acquired access to modern state of the art carbon black technology. This resulted in company gaining flexibility, product range production capacity and energy conservation.

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The performance in the field of export has also been spectacular, the company being the largest exporter in Asia handling about 77% of India’s carbon black exports. From an initial figure of 211mt in the year 1992-93 the exports so a quantum of jump of 35200mt in the year 2000. Export earnings also witnessed a similar performance, thereby conferring the status of a recognized export house on the company, currently export sales stands around 20% of the total sales. PCBL supplies to international tyre companies such as bridge stone-firestone, Dunlop, Goodyear and other year companies in USA, Newzealand, Holland, Philippines, Japan, Malaysia, Thailand Indonesia Taiwan, turkey, Germany, Iran, Egypt, Srilanka, South Africa, Nepal, china etc.

RESEARCH METHODOLGY

Methodology is a procedure or technique adopted in a research study or investigation. Many methods and procedures have been developed and employed to meet the needs of these searches in gathering varied facts essential for my study thus forming conclusions from different sources. in every price of research different methods are used in different stages of its development. The selection of method for research work depends upon the nature of the problem.

SOURCES OF DATA

For the purpose of analyzing the overall performance of Philips carbon black

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Ltd the investigator used primary data and secondary data. These data give us valuable information about the company’s performance.

PRIMARY DATA

Primary data refers to those data, which do not exist already in the records and publications. for the purpose of collecting primary data the investigator conducted an interview with every departmental employees and heads of Philips Carbon Black Ltd.

SECONDARY DATA

Secondary data refers to those data, which exist already in the records and publications

INDUSTRY PROFILE

Carbon Black is used mainly as a reinforcing material in the rubber industry. Other user areas include inks, paints, plastics and paper. The rubber industry uses 95% carbon black production while the rest is consumed by plastics, paints and dry cells.

WHAT IS A CARBON PRODUCT? Essentially any organic material can be thermally transformed to carbon. The carbonization process uses heat to convert organic precursors into a carbo polymer. Some selected precursors can then be transformed into a three-dimensional graphite structure or near graphite

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structure. Differences in the properties of final carbon products depend on the raw materials used on the extend of completion of overall chemical and physical ordering processes and upon whether the thermal transformation takes place from the vapour, liquid or solid phase. Carbon products can be grouped according to the extend of material processing raw material, carbon precursors and finished carbon products. Coal tars and petroleum cokes are the principal raw material used in the carbon products industry. These materials are bi-products of refining and other coal and oil processing operations. In the United States, approximately l.Smillion metric tones of coal tar and 24 million metric tones of petroleum cokes are produced each year.

Pitches and cokes, which are derived from coal and petroleum tars or heavy aromatic liquids are the two main carbon precursors materials fro the production of bulk carbon and graphite products and for the manufacture of carbon blacks. Pitches have a glass like character and cokes are carbon industry vision infusible solids. Bulk carbon and graphite products such as electrodes are produced by first blending calcined as a filler and liquid pitch as a binder. This “green” material is then thermally processed through a series of progressively higher temperatures to achieve the final desired properties. Petroleum coke is the largest single precursor material in terms of quantity for manufactured carbon and graphite products. Approximately 10 million tones were consumed worldwide in 1997. Other precursors include natural graphite, hydrocarbon gases, carbon blacks, anthracite and synthetic resins. Carbon blacks are nano cale carbon particulates produced by pyroloysis of feed stock from the vapour phase with homogeneous nucleation of solid carbon.

INDUSTRY APPLICATION FOR CARBON PRODUCTS

RUBBER PRODUCTS: Carbon black is used for making tyres and rubber tyres along consume 650000 tons/year of carbon black.

• Structured particulates of controlled morphology• Readily wet by rubbers

• Thermally stable, mechanically robust

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COMPANY PROFILE

PCBL established in 1960 was originally promoted by Duncan brothers in financial and technical collaboration with Philips Petroleum Company, USA . In 1987 the company entered into a technical collaboration with Colombian Chemical Company, USA, one of the world’s leading producers of carbon black. In 1988, the foreign equity holding was divested in favour of Indian shareholders and employees of PCBL. Presently PCBL has no technical collaboration with any firm and has been manufacturing through indigenous technology.

COCHIN UNIT

Company Address

Phillips Carbon Black Ltd.Karimugal

8

Brahmapuram P.OCochin-682303

Name Phillips Carbon Black Limited

Registered Office 3 l,N.S.Road,Kolkata-700001

Corporate Office 3 l,N.S.RoacLKolkata-700001

Date of incorporation March 31 1960

Sector Private

Constitution Public Limited CompanyProduction capacity 40000 MT p.a

Turn Over 140 Crores p. a

Total number of Employees 148

Management Staff 62

Non-Management staff 86

WORKING HOURS

Hours of work 8 hrs

General Shift 9.00 A.M to 5.00 P.M

“A” Shift 11.30 P.M to 7.30 A.M

“B” Shift 7.30 A.M to 3.30 P.M“C” Shift 3.30 P.M to 11.30 P.M

CAPACITIES PCBL has over the years has expanded its capacities by undertaking modernization-cum-expansion-cum-debottlenecking exercises in stages along with acquisition to reach the current capacity levels given below.

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PRODUCT PROFILE

PCBL produces around 22 categories of carbon black. Carbon Black are powdered forms of highly dispersed elemental carbon manufactured by controlled vapour phase pyrolysis of hydrocarbons. There are a number of different types of Carbon Black produced by different industrial processes including acetylene black, channel black, furnace black and thermal black. Average particle diameters in several commercially produced Carbon Black ranges from 0.01 to 0.4 micrometers, while average aggregate diameters range from 0.1 to 0.8 micrometers. Most types of carbon black contain over 97 to 99% elemental carbon. The key customers of PCBL include major tyre manufacturers including MRF, APOLLO Tyres, CEAT Tyres, JK Tyres and BIRLA Tyres in the domestic market and Bridgestone and some leading Tyre Companies of South East Asia among Global players. PCBL has thus emerged as a key player in domestic and international carbon black market.

PRODUCT RANGE OF PCBL

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PCBL manufactures around 20 different grades of Carbon Black and is the 11th largest manufacturer in the world. The following table gives a snapshot of various grades manufactured by PCBL, major applications and properties of Carbon Black:

KEY SUPPLIERS

1. Glencore-USA

2. APR Packing

3. Storesack

4. Shubia paper product Kuwait

5. WI Gore & Associates

6. Hi-Temp Filex

7. Carborandum Universal

KEY CUSTOMERS

1. MRF

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2. APOLLO Tyres

3. JK Tyres

4. CEAT

5. TVS Srichakra 6. MIDAS

MISSIONDEVELOP MANUFACTURE AND MARKET CARBON BLACK COMPETITIVELY,BE THE MOST PREFFERED SUPPLIER TO THE CUSTOMER AND CREATE WEALTH FOR ALL STAKE HOLDERS ON A SUSTAINED BASIS.

VISION

TO BE A GLOBAL CARBON BLACK PRODUCER, MANUFACTURER OF 450000 TONNES THROUGH EFFICIENT LOW COST AND ENVIRONMENTAL FRIENDLY.

OPERATION BY BEING

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Reliable, Competitive and Responsible supplier

Transparent and sustainable wealth creator to stake holders

Fair Employer providing an exiting work place

PERFORMANCE APPRAISAL

RPG Enterprise recognizes and honors performance through:

• An aggressive performance management system• Awards for outstanding performance• Fast track careers for consistent high performers• Career opportunities in the various business sectors of the group• Organization and Management review process at the

management committee level that reviews the status and progress of high fliers

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LEARNING AND DEVELOPMENT PROGRAMME

RPG Enterprise encourage learning and development through:

Leadership Development program designed in association with some of the best in the world

Development centers to map competencies and identify development needs

Development action plan for managers to bring in cutting edge proficiency levels in managerial competencies

Freedom to identify employee’s training and development needs

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Rigorous cross functional task force assignments to crack business challenges

CORPORATE SOCIAL RESPOSIBILITY

Promotion of sports and cultural events for the community Providing basic amenities(electricity, food, water, etc) to local

anganvady Supporting self employment scheme for women Financial help for poor patients in local community Distribution of notebooks, school bags, umbrella, scholarships to

local needy students

HI-TECH FACILITIES

To achieve competitive quality, PCBL has been continuously upgrading the technology. The process in Cochin unit are controlled by most advanced distributed control systems symbolizing the essence of state-of-the-art technology.

VALUES

Customer Sovereignty People Orientation Innovation and Entrepreneurship Passion for superior performance Anticipation, speed and flexibility Transparent and integrity

SAFETY AWARENESS

PCBL organizes safety awareness programmes for the employees and the local community. PCBL wants to make aware the

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employees that the products and inputs for the product in plant doesn’t undergo hazardious chemical reaction and doesn’t cause any health problem to employees and to the community. PCBL wants to satisfy the employees that the firm is taking all kinds of precautions while production. PCBL was awarded the second best safety and house keeping practices in 1995.

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ORGANISATION STRUCTURE

17

DEPARTMENTS

FINANCE DEPARTMENT Finance was the life blood of any business. Financial Statements contain organized systematic and summarized information on the firm’s financial affairs. They are meant to present the financial performance to the concerned parties. Balance Sheet and Profit & Loss a/c are the two

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basic financial statements prepared for the purpose of external reporting to owners, investors and creditors.

PCBL follows the system application and products(SAP) system of accounting under ERP. SAP is an integrated system of accounting containing different modules. Internal audit is conducted in the organization for better performance.

FUNCTIONS

To prepare Profit & Loss account and Profit & Loss Appropriation account

To prepare Cash Flow and Fund Flow Statements To prepare quarterly financial reports Supervise internal audit costing, budgeting and other internal control

system Establishing internal control in operational activities and

financial transactions To analyze and evaluate various trends such as net worth ratio, debt

equity ratio and current ratio To estimate the value of fixed assets, current assets and liabilities To prepare final accounts and this should be submitted to top

management for approval

SUMMARY

Finance Department is the master key which provides to all sources for being emploted in manufacturing and merchandising activities. This department deals with preparation of financial statement, recording of all the transactions undertaken by the company. This is also concerned with making payment to the vendors. It also makes necessary obligation to Banks and other various financial institutions. The finance department follows the accounting policies and the regulations laid down by company board. The efficient management of every business enterprise was closely linked with the efficient management of its finance.

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PURCHASE & STORES DEPARTMENT

Purchase Department is the key department in the company. Quality Raw materials leads to quality products. The Purchase Department ensures the purchase of quality raw materials for production at reasonable prices. About 90% of total cost is incurred for procuring raw materials. All other Departments acts as supporting departments.

This department takes account of how much to be purchased and the stock level of production. Purchase of various raw material takes place through Purchase Department. The various other departments present their requirements to stores. They prepare a store indent.

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FUNCTIONS OF PURCHASE DEPARTMENT

The functions of Purchase Department include

Approval of specification list of the materials required for a particular project

Receipt of materials > Identification and development of reliable vendor for supply of equipment and materials

Material requirement planning The performance evaluation of vendors The vendor performance is evaluated based on:

Quality Percentage of rejection Adherence to delivery commitments After sales service

FUNCTIONS OF STORES DEPARTMENT

As per the departmental procedure for purchase, all the materials required for the project will come to the stores where the Store Head will be the custodian of all materials being received. Incoming materials is inspected in accordance with the approved quality plan for the project by officials.

Functions are:

Store Keeping Inspection of incoming materials Storage identification and preservation Equipments records maintenance Control of customer supplied materials Stock verification Safe custody of materials

Optimization of inventory

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PROCEDURE OF PURCHASE

The procurement action is initiated based on Purchase Requisition raised by the intending department. The PR is originated by the head of the concerned department and authorized by the chief of operation. The PR is received at the Purchase department after the clearance by Stores Department. On receipt of PR in the purchase department the purchase officer in charge of the registration of PR opens the purchase files for each PR and assigns the file to the dealing officer based on the work allocation order issued by the purchase manager. The purchase files are identified by the control number given by stores department while clearing the PR, duly prefixed by the officer code number. The dealing officer then initiates action for the issue of the enquiry.

RAW MATERIALS

CBFS’ the primary raw material accounts for 55-60% of the total operating costs. Hence, CB manufacturing is a highly raw material intensive industry. CBFS use the residue left after the refining of the crude petroleum oil. Since CBSF prices are closely linked with crude petroleum prices, the CB manufacturers are essentially price takers and are exposed to the risk of volatility in CBFS prices. In order to insulate themselves from such volatility, the domestic manufacturers have formulated a pricing policy which tries to pass on the volatility of CBFS prices to the customers by linking with ex-factory CB prices of a producer to its actual purchase cost of CBFS over a quarter. Raw material cost being a ingredient of the total cost of the procurement of the same is given the highest priority and is monitored at the

22

level of managing director with the help of a committee. PCBL produces around 70-80% of CBFS from the New York Mercantile exchange(NYMEX) either through spot market or futures market. The rest is being sourced from the domestic producers. The CBFS pricing at NYMEX becomes the benchmark price for the domestic producers and hence the ultimate cost to PCBL is the same, still PCBL prefers to impart the CBFS as a domestic feedstock has the lesser quantity of carbon than the imported one.

SUMMMARY The objective and responsibility of the purchase department is to provide quality, cost efficient supplies of raw materials needed for concerned departments. Purchasing procedures have been established to facilitate the accomplishment of this objective while complying with company policies and practices.

PRODUCTION DEPARTMENT

MANUFACTURING PROCESS

PCBL, manufactures Carbon Black by a process known as the “Oil Furnace Process”. Carbon Black Feed Stock used as raw material are hydro carbon oils rich in carbon content of petroleum and coal tar origin, preheated air and oil feedstock are injected in reactor lined with high temperature refractories kept at a temperature of 1200-1600 degree celcious, where the feedstock undergoes cracking or decomposition.

The decomposition of the feedstock in deficiency of air and under carefully controlled conditions results in the formation of Carbon Black aggregates.

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The reaction which takes place in a few milliseconds is stopped by water quench. The resultant smoke carrying Carbon Black is quenched with water spraysand passed through heat exchangers , which in turn preheat the inlet oil and air thus achieving conservation of energy and improving the yield

The product stream i.e. smoke , is further cooled by secondary water quenching in vertical towers . it then enters bag filters where carbon black is separated from gas , the by product called off gas having low calorific value (around 650-700kcal/NM3 average) is burnt and the heat is utilized for generation of stream , drying operation &generation of power.

Separated carbon black dust is pneumatically conveyed to a pelletiser where the help of water solution and high gyrating force pellets are formed which are dried in rotary dryers finally stored in product storage tanks , products are bagged in paper bags(2.5kg.nt)PCBL manufactures carbon black in a number of grades. The various grades can be broadly divide between two categories, viz, Hard Black & Softblack. Hard Black is manufactured by a process called “tread stream” and is basically used for the outer surface of the tyre. Soft Black is manufactured by a process called “carcass stream” and is basically used for the inner surface of the tyre. The process flow schematic diagram is enclosed.

Surface area and structure are two primary variables in the process, which result in different grades, changes in surface area or structure or both at a time to pre-calculated levels will effect change over into other grades. Surface area is changed by changing operating conditions in the reactor, such as

a)throughput(oilrate)oil burner positionsb)residence time(time of reaction)c)oil-air ratio

MAJOR EQUIPMENTS USED

1. Reactors No: 3 & 6

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2. Air pre-heaters3. Process air blowers4. Compressors5. Pumps and fans6. Bag collectors7. Micro Pulverizes8. Mixer Palletizes9. Rotary Drier10. Storage silos and auto packer

FOUR MAIN STGES OF PROCESSING1. Cracking2. Filtering3. Pelletisation4. Drawing

TYPE OF REACTORS USED FOR THE PROCESS

1. Tread2. Carcass

PRESERVATION OF PRODUCTS

The department preserve the conformity of the product during internal processing, storage and delivery to the intended destination. The preservation of the product includes the protection of products against damage or loss during packaging, handling, storage and delivery.

MAINTENANCE DEPARTMENT

The purpose of engineering department/maintenance department is to maintain the infrastructure, equipments and utilities needed to achieve the product requirements, the maintenance department is concerned with rectifying the problems related to mechanical, electrical and instrumentation and are classified into three sections.

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1. Mechanical section2. Electrical section3. Instrumentation section

MECHANICAL SECTION

Proper maintenance increases life of the machine. This section alters mechanical defaults of the machines in the plant. For precautions initiative is taken by the Head of the department for the whole year. Once in a year annual shutdown are made for overall maintenance in plant.

OBJECTIVES

Maximize the plant availability Minimize mechanical/electrical/instrumentation break downs Implementation of scheduled preventive maintenance Implementation of planned condition monitoring Maintain in house caliberation of instrumentation /electrical instruments

and all external caliberations .

Procedure followed by maintenance department

1. Preventive measures2. Corrective measures3. Material intend raising & inspection4. Statutory inspection5. Equipment history

Preventive measures are adopted in order to avoid a future failure. This measure include preparation of periodical maintenance chart depends on the running hours by the yearly planner corrective measures are adopted after occurring a failure to machines . material intend raising and inspection section includes job material specification to purchase department after inspecting the quality. Statutory inspection is carried out by some external agencies once in a year for equipments like boilers, lifting tools etc. This section is servicing round the clock which help in achieving production targets. Its efforts are to bring down the zero level maintenance by implementing predictive maintenance.

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Engineering are provided with checklist to check the machines running according to the standards. Day to day works and pending works in the workshop is listed in the notice board. The main function of the section is to make machines available for production in time. Machines are properly greased, lubricated overhauled

periodically. During the shift most of the machines are cleaned and greased with the help of air blobbers, air fans, greases, guns etc.Some of the equipments in mechanical sections are lathe, grinding machine, welding machine, gas cutting machine, drilling machine, overhead cranes, power hack saw, chain block, screw jack, D shackle, wire slings, etc

ELECTRICAL SECTION

PCBL is a 1.7 MW Project. Foreseeing the power problems faced in Kerala, this department is equipped with the generators which are sufficient to carry out work without shut downs during power cuts . the capacity of different generators is 250 kv, 500kv, and 1250kv . this department is highly maintaining the safety of workers and plant being vigilant and quick services. This section is only engaged in rectifying the break downs due to power problems all over plant.

Procedure of work

Work is followed on the basis of schedules and call sheets in the department. Log sheet is prepared according to shifts. Here workers have to record the

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details of voltage and ampere of motors , flow of current etc . Schedules followed in the electrical departments :

1. Periodical checking2. Substation earth resistance maintenance3. Continuity testing4. Insulation resistance checking

Instrumentation

Instrumentation department deals with the maintenance of instruments in the plant . it observes instruments showing the temperatures of machines, flow of primary feed stock and secondary feed stock , pressure of air , water and additive etc. warehouse departmental instruments are rectified by instrumentation department.

HUMAN RESOURCE DEPARTMENT

The hr department deals with the activities of human resource in the organization . the in-charge of this department is “hr & administration head”, who is directly under the ‘chief of operation’. During the year, company focused on delivering distinctive people with organizational capabilities . A voluntary retirement scheme (VRS) launched during 2001-2002 was availed by around 90 employees, the cost incurred was Rs. 267 lacs was met through internal resources. the vrs expenses are to be amortized over a period of five years.

FUNCTIONS OF PERSONNEL DEPARTMENT

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The various functions of the personnel department are as follows:

1. MANPOWER PLANNING

The requirement of Human Resource for the organization was based in the long-term business plan of the organization. PCBL currently has employee strength of around 672 all over India. Duragpur unit has 112, Cochin unit has 144 and Kolkata office has 97 employees.

2. TRAINING

Every organization need well trained and experienced people to perform activities that have to be done. Training was given for workers as well as office staff. Workers get training in the plant because they get application of knowledge. By giving training it will improve the performance of employees on current job. Providing training to employees will result in high productivity, improving the quality and thus help the company to fulfill its organizational goals. For office staff, computer knowledge is inevitable. So office staffs are provided with computer training as all the departments are connected by network. The newly recruited personnel are given induction training/orientation.

TRAINING PROCEDURE

Department itself identifies the training needs essential for its employees. Head of the department will forward it to the human resource department. The Human resource department will then shortlist and get it coded. They make calendar for the whole year regarding the type of training needed. The programme for management staffs and technical staffs are different. The employees of PCBL are highly motivated through various schemes. A suggestion box is placed in the company and any employee is free to put suggestions into it. Every month the committee evaluate the viability of suggestions forwarded by the employees. If the committee thinks the suggestion so beneficial, they put it into practice. PCBL views investment

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in human resource as a productive form of long term investment. Training process is as follows:

1 .Identification of training needs

The minds of employees seems to have evolves through a transformation process. They are now more growth oriented ,ambitious, industrious, forward looking and increasingly adaptable to the rocking changes in the industry.

2. Assessment centers

PCBL has adopted assessment centre technology to assess the training needs of the employees across all levels. PCBL has adopted a differentiated assessment suit for assessment of training needs of employees at different levels.

S.Competancy Profiling

The competency profiling is a method of CRG(corporate resource group, a consulting organization) is used which link compensation to the 3P’s-position, person and performance. The model has helped the organization in position clarification, objective setting, performance review, position evaluation and personal development of executives.

4. Employees Opinion Survey

It is an important tool to guage the employees opinion about organization culture, their feeling level towards their superiors, peers the organization in general and the overall level satisfaction with their jobs.

RECRUITMENT AND SELECTION

The sources of recruitment of the company include both internal and external sources. The company chooses external sources like a campus recruitment,

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personal reference etc. The company is no way interested in contacting recruiters like private employment agencies for hiring purposes. Direct recruitment is made by Personnel Manager and the concerned head of department.

SELECTION PROCEDURE

Firstly the applicant has to fill a man power requisition form. Then short listed candidates are invited to attend interview and select best candidate among them and give them induction training. The selected candidates are appointed on a probation basis for 6 months after that they are eligible for all benefits from the company. The promotion of employees is based on the merit. The performance appraisal management system is highly active in the department. During the beginning of the accounting year, duties and responsibilities of each employees are prepared and also some standards are fixed in order to compare the actual performance with the standard performance.

TRADE UNIONS

PCBL has internal trade unions for the welfare of the employees. They are in no way in any contact with external trade unions. There are two trade unions:

CACIL -Carbon & Chemical Industries Ltd Employees

PCBL-Phillips Carbon Black Ltd Employees

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GRAPHS AND DIAGRAMS

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GRAPH Graph-1

DEPT M.STAFFNon-M.STAFF

Unit Head 1 0Production 17 4Warehouse 3 23Engneering 8 29CPP 10 2QA 5 8Meterial 4 4HR&Adm 2 9Project 2 0CE&Oil 2 2Finance 4 4Logistic 1 1

MAN POWER DEPT WISE

0

5

10

15

20

25

30

35

Unit Hea

d

Produc

tion

Ware

hous

e

Engne

ering

CPP QA

Met

erial

HR&Adm

Projec

t

CE&Oil

Finance

Logis

tic

DEPT

NU

MB

ER

M.STAFF

Non-M.STAFF

33

34

TRAINING EXPENSE

TRAINING EXPENCE

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

MONTHS

RS

in

LA

C

BUDJET

ACTUAL

TRAINING EXPENSEMONTH BUDJET ACTUALJAN 0.08 0.06FEB 0.08 0MAR 0.08 0APR 0.1 0.1MAY 0.1 0.31JUN 0.1 0.03JUL 0.1 0.23AUG 0.1 0SEP 0.1 0.04OCT 0.1 0.29NOV 0.1 0DEC 0.1 0

MANPOWER CONVERSION COST

MANPOWER CONVERTION COST

1163

1371 1431

1223 1292

1605

0

200

400

600

800

1000

1200

1400

1600

1800

2005-06 2006-07 2007-08

YEAR

RS

/MT Rs/MT Budjet

Rs/MT Actual

MANPOWER CONVERSION COST

YEAR Rs/MT

YEAR Budjet Actual

2005-06 1163 1223

2006-07 1371 1292

2007-08 1431 1605

STAFF STRENGTH VS PRODUCTIVITY

staff strength Vs productivity

130

135

140

145

150

155

160

2004-052005-062006-072007-08

year

nu

mb

ers

0

50

100

150

200

250

300

350

pro

du

ctiv

ity(

MT

)

Numbers

PRODUCTIVITY/mt

STAFF STRENGTH Vs PRODUCTIVITYyear Numbers PRODUCTIVITY/mt

2004-05 154 1752005-06 145 2452006-07 140 2802007-08 138 300

QUALITY ASSURANCE DEPARTMENT

Quality Assurance department is instituted for making high quality products. The different customer needs different types of products at different grades. It is the duty of QAD to provide products according to their satisfaction. They conduct tests and make necessary changes for the products to meet the quality.

FUNCTIONS OF QUALITY ASSURANCE DEPARTMENT

To meet & inspection & testing requirements of reacting in process and final products

Reduction in customer complaints due to quality reasons Reduction in customer rejections due to quality reasons Use of statistical techniques for quality control

STAGES OF QUALITY CONTROL TEST

Quality control tests are conducted by way of in process tests and finished goods testing. Inprocess tests are conducted during the process and is carried out with the help of dust whereas finished goods test is carried out after the production. The finished goods testing is done by taking one sample from each tonne. The parameters for testing are surface area and structure since the requirements for every customers are different.

VARIOUS QUALITY TESTS

1. Iodine absorbtion number2. DBPA3. Sieve residue4. Heat loss5. Fines6. Pellet hardness7. Pour density

8. Compressed DBP9. Tint10.CTAB11. Ash12.Toluene discolouration

13.Mass strength H.Ph

QUALITY POLICY

PCBL shall maintain market leadership of carbon black industry by being the preferred choice of customers. PCBL shall meet:

The requirements of product specification, On-time delivery and appropriate service to optimize customers benefit

Upgrade technology and business process to meet changing needs of customers

Continuously improve employees skills Be an environmental friendly organization

WAREHOUSE DEPARTMENT

This department stores the product after packing till delivery. PCBL has a storage capacity of 10000 tonnes. After testing from the lab, the products are stored in a storage silo which has different compartments based on grades. The packing process is done automatically through a machine named auto packer. This machine performs the functions like bagging, stitching and weighing automatically. There are two types of packing. One is jumbo bag(l tonne) and paper bag(25kg). Packing s done as per customer requirements. The two main function carried down by this department are

Packing

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MARKETING DEPARTMENT

Marketing functions of PCBL are centralized. PCBL Cochin unit has no separate marketing department. Marketing functions are carried out through the head office of PCBL, Kolkata. PCBL has 5 regional offices for coordinating the marketing process. Each regional offices have:

1 regional marketing manager 1 accountant Other supporting staff

Production plan for Cochin unit is given from the head office and production is made accordingly. The logistics department in the plant acts as the marketing department. They make necessary arrangement for loading the products and coordinate other related activities. 90% of the production is directly acquired by the tyre manufacturing companies and remaining 10% by a soul distributor(A V Thomas & Co.).

LOGISTICS DEPARTMENT

PCBL has no separate marketing department at its plant. Based on the orders from customers, PCBL Kolkata gives a production plan to cochin unit and produce accordingly. Since it has no separate marketing department, marketing activities are carried out by logistics department at its plant. They arrange trucks and other necessary materials for loading the products. The manage the loading activities in the plant.

CENTRAL EXCISE AND OIL DEPARTMENT

This department deals with all matters connected to excise, inventory control and receipt of oil from suppliers. PCBL hired storage tanks from Indian molasis company to store oil imported for production. The terminal officer of PCBL give a delivery chellan which contains details regarding truck number, time of removal, net weight. On the basis of this delivery chellan the company gives permission to the trucks to enter in to the company ,then the seal of the tank is broken and send to the research and development department to test its status then after satisfying the result the oil is deposited in to company’s tank . PCBL has 6 tanks and each has capacity between 1000-1200 tones. The average requirement of oil(raw material) range between200-220tones per day. Functions of central excise & oil department

Obtaining various licenses from government as per requirement

File necessary returns (ERI monthly returns)

Payment of duty Document necessary files to be submitted to government

Clearance of the vehicle after loading

CAPTIVE POWER PLANT DEPARTMENT

Generating Process Power

The main functions of department are : Produce and supply electricity as per requirement Produce and supply steam

The off-gas which comes out of the bag filter after being separated from carbon black is basically a bi-product gas with a low calorific value. This waste gas is burned and heat generated from combustion is used to generate steam in the boiler which in turn runs the turbine to generate power.The combustion furnaces a re built to incorporate the three most critical requirements for burning low calorific value process waste gas namely:

Time for good mixing of combustile Temperature for bringing combustiles to its ignition point Turbulence to complete the combustion without going below the

ignition point

The combuster is a refractory linked furnace and is kept hot to provide proper temperature. Cyclonic principle is used to provide turbulence and intimate mixing of process waste gas and combustion air adequate combuster volume is provided for the necessary residence time to complete the oxidation of the combustile components.

The process waste gas enters the refractory linked combuster tangentially through a rectangular part at high velocity. Tangential entry and high velocity imparts a strong swirl to the process waste gas and the resulting centrifugal force makes the process waste gas burn the hot refractory. The part of the combustion air is forced into swirling process waste gas through multiple radial nozzles in the refractory. This high momentum jets help the less viscous air to mix well with the more viscous process waste gas. The heat released from this combustion is used to generate steam which is fed into steam turbines to generate power.

ENVIRONMENTAL DEPARTMENT

This department reduces pollution of air & water due to production. The department adopt most appropriate production process considering pollution and try to comply with legal requirements with pollution. The company got ISO-14001(2004) for environment management system from concerned authority. PCBL promoted an ETP Plant(Effluent treatment plant) which reduces pollution by separating waste water and oil through an oil separator. Efforts on environment, health and safety continued unabated. Cochin unit was ranked third among large industries in Kerala for its sustained and substantial effort in controlling pollution during 2004. The company is actively engaged in providing voluntary social services to residence around the factories. E.g.: medical camp, tree plantation The company has bagged prestigious awards like coveted ICMA award for novel energy conservation in chemical plants of the country and CHEMTECH Foundation Award fro the wealth from waste. IN 1997, it has also won the Best Company of the Year Award for all around performance within the RPG companies.

Being a Petro-chemical industry, considerable importance has been given to preserving global resources. It’s a pioneer in utilizing the waste gas produced during the process to generate power, as well as burning then waste gas in dryers to recover all sensible heat of the gas, thereby saving substantial energy and reducing pollution level.

PCBL Kochi unit has become one of the green and environmental friendly factories amongst those manufacturing carbon black in the world. The company has installed secondary bag filters in its new state-of-the-art manufacturing lien at its Karimugal Kochi based manufacturing unit. This specialized filter is unique in this industry, as all carbon black factories in India and around the world rely on the primary bag filter to prevent any release of carbon black into the atmosphere.

The main functions of this department are:

Setting and reviewing the environmental objectives Adopting the most appropriate manufacturing process Prevention of pollution Comply with applicable legal requirements Be an environmental friendly organization

ENVIRONMENTAL POLICY

Adopting the most appropriate manufacturing process of carbon black with continued improvements for prevention of pollution

Complying with applicable legal requirements as prescribed by the regulatory authorities and other requirements of interested parties

Setting and reviewing the environmental objectives and targets regularly with a view to achieve continual improvement

KEY RESULT AREAS OF THE ORGANIZATION

The GM at the head office plans out an early target for the better performance of the company. In this yearly programme, he spots and communicate the areas in which they want to concentrate more and also describes the type of results the company wants. He awards scores for successful completion of the works assigned. He gives the yearly plans to the concerned officers at the plants and these officers have to report him continuously about the progress of working within a specified date. These concerned officers divides their work to the junior officers and the junior officers are asked to submit reports periodically. If there is any failure in the works done, then both the concerned junior officer and his senior officers are responsible to make clarifications.

The head office can assess the working of programme by evaluating the reports. Here the performance of each and every employees in the organization can be analyzed by the top authority and can make necessary changes. The head office can review the target on every six months after the analysis of the performance in the different departments.

KEY RESULT ACTIVITIES

The activities that are carried out in different departments for accomplishing the targets are called key result activities. Once the target procured for the departments are given from the head office , the department heads can plan the activities for attaining the target desired. If there is any failure in the works done, then both the concerned junior officer and his senior officers are responsible to make clarifications. This helps the management to measure the competency and performance of the employees. Department heads will continuously monitor the working of target plans.

FINANCIAL STATEMENTS

PROFIT & LOSS ACCOUNT for the year ended 31 st March, 2007

INCOME Schedule Rupees

in Lakhs

Sales- Carbon Black 111,276.24

Less: Excise Duty 12,469.05 98,807.19

sales- Power 1,054.62

Other income 13 408.69

Closing stock of finished Goods 1.399.13

101,669.63

EXPENDITURE

Opening stock of finished Goods 1,998.35

Raw Materials Consumed 14 67,262.00

Expenses 15 22,657.89

Depreciation 2,036.48

Interest 3.260.27 97.214.99

PROFIT BEFORE TAXATION 4,454.64Provision for Taxation: 525.38Current Tax 1,501.82Deferred Tax(release)/charge 74.24Fringe Benefit Tax

PROFIT AFTER TAXATION 2.353.20Balance brought forward from

previous year 1,999.18

Profit available for Appropriation 4,352.38Proposed Dividend 505.06Tax on Proposed Dividend 85.84

3,761.48Transferred to General Reserve 177

Balance carried to Balance Sheet 3,584.48

Earning per Share 16

Basic 11.75Diluted 11.47

BALANCE SHEET as at 31st March, 2007 Schedule Rupees in Lakhs SOURCES OF FUNDSShare Holder’s Funds:

Share Capital 1 2,525.23Convertible Warrants issued and allotted 447Reserves and Surplus 2 13,608.20

16,580.43

Loan Funds:Secured Loans 23,154.47Unsecured Loans 3 1,838.21

24,992.68

Deferred Tax Liablity(Net) 4336.6545.909.76

APPLICATION OF FUNDSFixed Assets 4Gross Block 44,717.03Less: Depreciation 18.686.55Net Block 26,030.48Capital Expenditure in Progress 2,107.61

28,138.09

Investments 5 2,805.52Current Assets. Loans and AdvancesInventories 6 11,485.83Sundry Debtors 7 23,366.55Cash and Bank Balances 8 4,216.41Other Current Assets 9 2,463.04Loans and Advances 10 1,402.88

42,934.71

Less: Current Liablities and provisionsLiablities 11 27,480.89Provisions 12 590.9

28,071.7914,862.92

Miscallaneous Expenditure(to the extent not written off or adjusted)

Payments Under Voluntary Retirement Schemes 103.2345,909.76

PROFIT & LOSS ACCOUNT for the year ended 31 st March, 2008 INCOME Schedule Rupees

in Lakhs

Sales- Carbon Black 114,983.75

Less: Excise Duty 13,159.12 101,824.63

sales- Power 1,493.53

Other income 13 612.22

Closing stock of finished Goods 2,114.92

106,045.30

EXPENDITURE

Opening stock of finished Goods 1,399.13

Raw Materials Consumed 14 64,066.26

Expenses 15 25,343.18

Depreciation 2,013.59

Interest 1,944.70

944,766.86

PROFIT BEFORE TAXATION

11,278.44

Provision for Taxation: 16 2347.59

PROFIT AFTER TAXATION 8930.85

Balance brought forward from

previous year 3584.48

Profit available for Appropriation

12515.33

Proposed Dividend 1010.13

Tax on Proposed Dividend 171.67

11,333.53

Transferred to General Reserve 900

Balance carried to Balance Sheet

10,433.53

Earning per Share 17

Basic 35.37Diluted 34.19

BALANCE SHEET as at 31st March, 2008 Schedule Rupees in Lakhs SOURCES OF FUNDSShare Holder’s Funds:

Share Capital 1 2,525.23Convertible Warrants issued and allotted 447Reserves and Surplus 2 21,307.38

24.279.63

Loan Funds:Secured Loans 26,457.96Unsecured Loans 3 2,583.41

29,041.37

Deferred Tax Liablity(Net) 3,530.2356,851.23

APPLICATION OF FUNDSFixed Assets 4Gross Block 45,065.68Less: Depreciation 20,575.23Net Block 24,490.45Capital Expenditure in Progress 13,051.04

37,541.49

Investments 5 2,805.52Current Assets. Loans and AdvancesInventories 6 15,528.47Sundry Debtors 7 21,756.76

Cash and Bank Balances 8 1,506.09Other Current Assets 9 4,633.00Loans and Advances 10 1,547.18

44,971.50

Less: Current Liablities and provisionsLiablities 11 27,373.49Provisions 12 1,181.80

28,555.2916,416.21

Miscallaneous Expenditure(to the extent not written off or adjusted)Payments Under Voluntary Retirement Schemes 88.01

56,851.23

Inadequate infrastructure at ports , resulting in detention of vessels and higher transportation cost.

WEAKNESS

The major raw materials for the company has close relationship with crude oil prices.

The company is also exposed to risk from market fluctuations of foreign exchange, interest rate and stringent statutory regulations relating to environment

SUGGESTIONS

If the company has its own vessels at the port, it is more profitable than hiring of vessels in the port though initial investment is high.

If the company has its own transportation facility from Port to company, it will be profitable.

If the plant has its own marketing department, it will be beneficial for the company.

If the company electricity to others, it can earn more profits. The company should conduct awareness programmes for the

society to impart their misunderstanding regarding pollution. If the company opens a training cell for students for doing projects, it will help them to know more about the company.

CONCLUSION

Phillips Carbon Black Ltd., part of the RPG group pioneered the carbon black industry in India. It is now the leading producer of carbon black in the country and the 7th largest carbon Black company in the world. Rapidly evolving trends constantly revolutionize the manufacturing industry. To achieve competitive quality PCBL has been continuously upgrading the technology.

In the midst of a promising and optimistic business environment lies the need for adapting more and more manufacturing solution capable of delivering precision combined with state-of-the-art automation, manufacturing technology, therefore assumes critical significance inorder to achieve world class excellence to highlight these evolving trends in the carbon industry globally. The processes in Cochin unit are controlled by most advanced distributed control systems symbolizing the essence of the state-of-the-art technology. The company uses latest equipments from world’s manufacturer’s like M/s Chronos Richardsons (UK), Rekuperator AG(Germany), Delmonego (Italy).

BIBLIOGRAPHY

www.pcblltd.com Annual report of PCBL Ltd.