[1]

A REPORT ON THE ORGANISATION

STUDY

AT

TRAVANCORE COCHIN CHEMICALS

SUBMITTED TO:

MAHATMA GANDHI UNIVERSITY, KOTTAYAM

In partial fulfilment of the requirements for the award of the degree of

MBA ()

SUBMITTED BY:

REGISTER NO:

[2]

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

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

Academic Guide Dean

[3]

DECLARATION

I, , , hereby declare that this organization based report on “THE

TRAVANCORE COCHIN CHEMICALS LIMITED” is an outcome

of my study under the guidance of and is submitted in partial

fulfilment of the requirements for the award of the Degree of

Master of Business Administration of the Mahatma Gandhi

University.

The observations, suggestions

and findings of this report are based on the data collected by

me during the one-month period allotted for the study. Any part

of this report has not been reproduced or copied from any other

report submitted to the institute.

[4]

ACKNOWLEDGEMENT

I thank lord almighty who gave the strength and wisdom

to complete the organizational study in a very successful

manner.

I would like to express my deep sense of gratitude to Mr.

Philip Mathew, Manager Training & Development who gave

me the necessary guidance and inspiration throughout the

work.

I would like to place it on cards my sincere thanks to my

guide Smt., Faculty (MBA), for her valuable suggestions during

the study.

I am extremely grateful to my parents for their inspiration and to all

those who had directly and indirectly helped me during the preparation of the

project work.

[5]

TITLE PAGE NO

1.

1.1

1.2

1.3

1.4

INTRODUCTION

Objectives of the study

Limitations of the study

Sources of data collection

Industry Profile

2

2.1

2.2

2.3

2.4

2.5

2.6

2.7

COMPANY PROFILE

History and growth

Mission

Objectives

Product Profile

Awards won-ISO certification

Competitors

Customers

[6]

3

3.1

3.2

3.2.1

3.2.2

3.2.3

3.2.4

3.2.5

3.2.6

3.2.7

3.2.8

3.2.9

ORGANIZATION STRUCTURE

Organisation Chart

Departments

Operations Department

Material Department

Marketing Department

Technical Department

Personnel Department

HRD /Training Department

Finance Department

Engineering Department

Projects Department

SL.NO

[7]

4 SWOT ANALYSIS

5

5.1

5.2

5.3

5.4

CONCLUSION

Conclusion

Findings

Recommendations

My Experience in the organisation

6 BIBLIOGRAPHY

7

7.1

7.2

APPENDIX

Financial statements

Abbreviations

[8]

\

LIST OF CHARTS

CHART NO: NAME OF THE CHART PAGE NO

3.1

3.2.1

3.2.2

3.2.3

3.2.4

3.2.5

3.2.6

3.2.7

3.2.8

3.2.9

Organisation Chart

Operations Department

Material Department

Marketing Department

Technical Department

Personnel Department

HRD /Training Department

Finance Department

Engineering Department

Projects Department

[9]

INTRODUCTION

[10]

1. INTRODUCTION The chemical industry comprises of the companies that produce industrial chemicals. It is central to the modern world economy, converting raw materials such as oil, natural gas, air, water, metal and minerals into more than 70,000 different products. Chemicals are used to make a wide variety of consumer goods, as well as thousands of inputs to agriculture, manufacturing, construction and service industries. The chemical industry itself consumes 26% of its own output. Major industrial consumers include rubber and plastic products, textiles, apparel, petroleum refining, pulp and paper and primary metals. The chemical industry has shown rapid growth for more than 50 years.

As accepted by chemical engineers, the chemical industry involves the use of chemical processes such as chemical reactions and refining methods to produce a wide variety of solid, liquid and gaseous materials. Salt is one of the oldest and most popular condiments. What is relatively unknown, however is that salt is also the raw material for one of the most potentially profitable chemical industries in the country- Chlor alkali. The Chlor alkali industry faces a threat from the imported products.

The chlor alkali industry in India is around 60 years old. It began with a modest capacity of a few thousand tonnes per annum and has since grown into a 2.24 million tonne per annum capacity industry. In the process of manufacturing chlor alkali some bye products are assured. For each tonne of caustic soda, 860 kg of chlorine and 25 kg of hydrogen will be produced. Some amount of chlor produced is combined with hydrogen to make hydrochloric acid. Caustic soda, Hydrochloric acid, Chlorine is basic chemicals and are used by almost all industries.

1.1 OBJECTIVES OF THE STUDY

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• To understand the organization structure and the various functional departments.

• To have an exposure of the work environment.

• To understand the extent to which the theory matches with the actual practices seen in the organization.

• To make an analysis of the organization’s performance.

• To study the relevance of TCC in the chemical industry field in India.

• To get clear idea regarding the products and their products.

1.2. LIMITATIONS OF THE STUDY• To understand the organization and study its various

functions and ups and downs a period of 30 days is not enough.

• No direct contacts with department are not allowed.

• Access to many of the important documents or the key areas was not allowed.

• As there were many three shifts seeing the workers together for a public interview or an opinion session was not possible.

1.3 SOURCES OF DATA COLLECTION

BOTH PRIMARY AND SECONDARY METHODS

PRIMARY METHOD

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

[12]

the organisation and collecting data directly from them. From this we get different views and ideas of different people. The data collected will be very accurate.

SECONDARY METHOD

This is a method by which we collect data that is already being collected by someone else. And which have already being through statistical methods. This study also used secondary data from websites, magazines etc. This type of data may not be so accurate because it is not collected by us directly. So collecting data through secondary method should be very careful. But this is much easier method than primary data collection .

1.4. INDUSTRY PROFILE

INDUSTRY PROFILE

Chemical Industry

. The chemical industry comprises the companies that produce industrial

chemicals. It is central to modern world economy, converting raw materials (oil, natural

gas, air, water, metals, and minerals) into more than 70,000 different products. Polymers

and plastics, especially polyethylene, polypropylene, polyvinyl chloride, polyethylene

terephthalate, polystyrene and polycarbonate comprise about 80% of the industry’s

output worldwide. Chemicals are used to make a wide variety of consumer goods, as well

as thousands inputs to agriculture, manufacturing, construction, and service industries.

The chemical industry itself consumes 26 percent of its own output. Major industrial

customers include rubber and plastic products, textiles, apparel, petroleum refining, pulp

and paper, and primary metals. Chemicals are nearly a $2 trillion global enterprise, and

the EU and U.S. chemical companies are the world's largest producers. The largest

[13]

corporate producers worldwide, with plants in numerous countries, are BASF, Dow,

Shell, Bayer, INEOS, Exxon Mobil, DuPont, and Mitsubishi, along with thousands of

smaller firms.

In the U.S. there are 170 major chemical companies. They operate internationally

with more than 2,800 facilities outside the U.S. and 1,700 foreign subsidiaries or affiliates

operating. The U.S. chemical output is $400 billion a year. The U.S. industry records

large trade surpluses and employs more than a million people in the United States alone.

The chemical industry is also the second largest consumer of energy in manufacturing

and spends over $5 billion annually on pollution abatement.

In Europe, especially Germany, the chemical, plastics and rubber sectors are

among the largest industrial sectors. Together they generate about 3.2 million jobs in

more than 60,000 companies. Since 2000 the chemical sector alone has represented 2/3 of

the entire manufacturing trade surplus of the EU. The chemical sector accounts for 12%

of the EU manufacturing industry's added value.

The chemical industry has shown rapid growth for more than fifty years. The

fastest growing areas have been in the manufacture of synthetic organic polymers used as

plastics, fibers and elastomers. Historically and presently the chemical industry has been

concentrated in three areas of the world, Western Europe, North America and Japan (the

Triad). The European Community remains the largest producer area followed by the

USA and Japan.

The traditional dominance of chemical production by the Triad countries is being

challenged by changes in feedstock availability and price, labour cost, energy cost,

differential rates of economic growth and environmental pressures. Instrumental in the

changing structure of the global chemical industry has been the growth in China, India,

Korea, the Middle East, South East Asia, Nigeria, Trinidad, Thailand, Brazil, Venezuela,

and Indonesia.

Technology

As accepted by chemical engineers, the chemical industry

involves the use of chemical processes such as chemical reactions

and refining methods to produce a wide variety of solid, liquid, and

[14]

gaseous materials. Most of these products are used in manufacture

of other items, although a smaller number are used directly by

consumers. Solvents, pesticides, lye, washing soda, and Portland

cement are a few examples of product used by consumers. The

industry includes manufacturers of inorganic- and organic-

industrial chemicals, ceramic products, petrochemicals,

agrochemicals, polymers and rubber(elastomers), oleo chemicals

(oils, fats, and waxes), explosives, fragrances and flavors.

Examples of these products are shown in the Table below.

Product Type Examples inorganic industrial ammonia,

nitrogen, sodium hydroxide, sulphuric acid, Organic industrial

acrylonitrile, phenol, ethylene oxide, urea, Ceramic products silica

brick, frit Petrochemicals benzene, ethylene, styrene,

Agrochemicals fertilizers, insecticides, herbicides, Polymers

polyethylene, Bakelite, polyester, Elastomers polyisoprene,

neoprene, polyurethane, Oleo chemicals lard, soybean oil, stearic

acid, Explosives nitroglycerin, ammonium nitrate, nitrocellulose,

Fragrances and flavors benzyl benzoate, coumarone, vanillin.

Although the pharmaceutical industry is often considered a chemical industry, it has

many different characteristics that put it in a separate category. Other closely related

industries include petroleum, glass, paint, ink, sealant, adhesive, and food processing

manufacturers.

Chemical processes such as chemical reactions are used in chemical plants to form

new substances in various types of reaction vessels. In many cases the reactions are

conducted in special corrosion resistant equipment at elevated temperatures and

pressures with the use of catalysts. The products of these reactions are separated using a

variety of techniques including distillation especially fractional distillation, precipitation,

crystallization, adsorption, filtration, sublimation, and drying. The processes and

product are usually tested during and after manufacture by dedicated instruments and

on-site quality control laboratories to insure safe operation and to assure that the product

[15]

will meet required specifications. The products are packaged and delivered by many

methods, including pipelines, tank-cars, and tank-trucks (for both solids and liquids),

cylinders, drums, bottles, and boxes. Chemical companies often have a research and

development laboratory for developing and testing products and processes. These

facilities may include pilot plants, and such research facilities may be located at a site

separate from the production plant.

Companies in 21st century

The chemical industry includes large, medium, and small companies that are

located worldwide. Companies with sales of chemical products greater than $10 billion

dollars in fiscal year 2005 are shown below. For some of these companies the chemical

sales represented only a portion of their total sales; for example Exxon Mobil’s chemical

sales were only 8.7 percent of their total sales.

Chemical Industry is highly heterogeneous with following major sectors:

• Petrochemicals

• Inorganic Chemicals

• Organic Chemicals

• Fine and specialties

• Bulk Drugs

• Agrochemicals

• Paints and Dyes

Foreign Trade

India was a net importer of chemicals in early 1990s, but has

now become a net exporter due to reduction in imports because of

implementation of many large scale petrochemical plants like

Reliance, ONGC etc. and also because of tremendous growth of

exports in sectors like bulk drugs and pharmacy, pesticides, dyes

and intermediates.

[16]

[17]

COMPANY

PROFILE

2.1. HISTORY & GROWTH

The Travancore-Cochin Chemicals Ltd., popularly known as TCC

was established in 1950. The idea of establishing the unit was conceived by M/s

Sheshasayee Brothers the then managing agent of FACT.

The venture was started as partnership concern in the name Travancore Mettur

Chemicals with FACT and MCIC (Mettur Chemicals and Industrial Corporation) as

partners. In 1951 the partnership was registered as a Public Limited Company, with the

State Government contributing the major share of equity and the company was then

named as TRAVANCORE-COCHIN CHEMICALS LTD. M/s Sheshasayee Brothers

continued to be the managing agents for the next 10 years.

[18]

Commercial production of Caustic Soda from the first plant of 20 tpd capacity was

started in 1954 January. TCC is the first unit in India to manufacture Rayon grade

Caustic Soda.

Stages of Growth

• 1956 - A continuous Caustic Fusion Plant 20 tonnes per day for

producing Caustic Soda flakes.

• 1958 - Chlorine Liquefaction Plant

• 1960 - Capacity enhanced to 30 tonnes per

day further to 40 tonnes per day.

o Established new plant for manufacture of Sodium

Hydrosulphate 3 tpd capacity

• 1967 - 7 tpd Sodium Hydrosulphate

o 60 tpd Caustic Fusion Plant

o 4 tpd Iron free Sodium Sulphate

• 1975 Added another 100 tpd Caustic Soda Membrane Unit

thereby increased the production capacity 200 tpd own Water

Treatment Plant.

(by 1988, many of the old unit were dismantled)

• 1997 - 100 TPD Caustic Soda manufacturing unit using

Membarane technology capacity 125 tpd.

• 1998- New CCF Plant in place of existing 60 tpd.

• 2005 -Addition 25 tpd

• 2006 Addition 25 tpd

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

Products:

• Caustic soda lye

• Caustic soda flakes

• Liquid Chlorine

• Hydrochloric acid

[19]

• Sodium Hypochlorite

2.2. CORPORATE MISSION

TCC is committed to supply quality chemicals at

competitive prices.

Customer satisfaction, Concern for environment and Safety are our

priorities.

They intend to achieve

• Utmost level of conservation of all resources including energy

• Cost effectiveness in all operations

• Regular upgrading of technologies used in processing

• Compliance with laws and statutory regulation

Corporate Governing Body:

[20]

Q

uality Policy:

They are committed to enhance customer satisfaction by providing

goods and services complying with continually improving Quality

Management System.

Health and safety policy:

• TCC is committed to provide every one of its employees and

the related public an accident-free and healthy environment

in its efforts to manufacture high quality products at

competitive prices. The company will comply with all

statutory requirements in this regard.

• The company will provide a work environment in which

identified hazards are controlled, if elimination is not feasible

and will provide personal protective equipments wherever

necessary.

DIRECTOR

(OFFICIAL)

CHAIRMAN

MANAGING DIRECTER

DIRECTOR

(FINANCE)

NOMINEE DIRECTOR

(KSIDC)

DIRECTOR

[21]

• Accident prevention is the direct responsibility of the Line –

Management and will be an important criterion for

performance appraisal. Line – Management will ensure that

all safety measures are incorporated in the operating and

maintenance procedures as well as in any process technology

changes in the plant/infrastructure.

• Consideration of health and safety will be given proper

weightage in selection and deployment of the personnel.

• The company will ensure that health and safety aspects are

given due consideration in decision regarding purchase of

plant equipments, machinery and materials.

• Every employee of the company shall perform his/her job

adopting Safe and proper work methods and using

appropriate Safety equipments understanding that their

career advancement is linked with SAFE performance.

• Contractors, sub-contract workers, transporters and visitors

entering the factory shall be required to observe health and

safety practices of the company in all their activities.

• All contract jobs will be carried only through the laid down

procedures with appropriate supervision.

The company will carry out safety audits, risk assessment studies, emergency mock drills,

and periodic assessment of health of its employees as well as status place hazards be

identified, appropriately evaluated and effectively controlled to achieve this goal. Whole

hearted co-operation of all is solicited for this.

Energy Policy:

At the Travancore-Cochin Chemicals Udyogamandal are always committed to

conservation of energy by all possible means

To accomplish our mission, they strive for:

[22]

• Technological up gradation to reduce specific energy

consumption

• Conducting energy conservation studies including energy audit

and adopting the apt measures for conserving energy

• Contacting other organizations and enriching our experiences

on energy conservation

• Using renewable energy sources to the extent possible

• Disseminating knowledge and information on energy

conservation to our employees

• Low energy fuels also to be tried depending upon feasibility.

2.3. OBJECTIVES• Produce and market chemicals and caustic soda economically

and in an environmentally sound manner.

• To maintain optimum level of efficiency and productivity and to secure optimum return on investment.

• To maximize profits from projects taken up.

• The continuously upgrade the quality of human resource of the company and to promote organization development.

• To improve the plant’s operational safety and to confirm statutory pollution controls standards.

• To ensure corporate growth by expansion and diversification.

• To care for community around.

2.4. Product Profile Caustic Soda, Chlorine, Hydrochloric Acid form the

back born of the chemical industry as it is important to the

country’s economic growth.

[23]

Products and production capacity

Products Production in TPD

Caustic Soda Lye 175(on 100% NaOH

basis)

Caustic Soda

Flakes

100

Liquid Chlorine 72

Commercial

Hydrochloric Acid

387

Sodium

Hypochlorite

45

2.5. AWARDS WON AND ISO CERTIFICATION Moving with the times, TCC keeps up its technology

regularly updated and continue to be the competitive strength in

the Chlor-alkali industry. With expanded plants and higher

production capacity, TCC has come out to be the profitable public

sector undertaking. Over the years we have achieved recognition

and awards for the remarkable performance in the industry with

[24]

regard to production, productivity, energy conservation and

environmental protection.

• 1981 - Best Performance Award for Safety in the State from

Directorate of Factories & Boilers, Government of Kerala

• 1988-89 - Best Pollution Control Award under group "Heavy

Inorganic Industries" in Kerala, from Kerala State Pollution

Control Board

• 1989 - Award for Best Performance in Safety in India under

"Chemical Industries" group from National Safety Council.

• 1989-90 - Prize for Productivity from Kerala State

Productivity Council.

• 1993 - Best Performance award for Energy Conservation in

the State of Kerala under group "Chemical & Fertilizers –

above 3000 KVA" from Government of Kerala

• 1994-95 - Best Performance award for the Productivity in the

State of Kerala under group "Large Industries" from Kerala

State Productivity Council

• 1995-96 - Best Performance award for Productivity in the

State of Kerala under group "Large Industries" from Kerala

State Productivity Council.

• 1998 - Best performance award for Energy Conservation in

the State of Kerala under group "Major Industries" from

Energy Management Centre, Govt. of Kerala.

• 1998 - Performance award for Energy Conservation under

group "Chlor-alkali Sector". Ministry of Power, Government of

India.

• 2003 - Kerala State Energy Conservation Award (2000) in the

category of Large Scale industry

[25]

• 2005 - National Energy Conservation Award "Chlor-alkali

Sector"

Eco preserve:

TCC is well aware of the responsibility that manufacturing

industries bear towards environment. Conserving the resources of

environment from pollution and preserving healthy living

conditions are important concerns at TCC. TCC’s commitment is to

sustain the toxic-free environment observing statutory stipulations

and legal regulation.

TCC believes in pollution prevention rather than

pollution control. Their activities comprise awareness programs

among the employees, customers, contractors and all those who

are associated with them. Their endeavour is to minimize

hazardous emission and waste and to reduce the impact of the

manufacturing activities. TCC aims to achieve zero effluent

discharge by the end of this year.

2.6. COMPETITORS

• Tamil Nadu Petro Products Ltd

• Belapur Industries

• Chemplast (Tuticorn)

• Andhra Sugars Ltd (Andhra pradesh)

• Atul Ltd (Ahmadabad)

• Chem Fab Alkalies Ltd (Pondichery)

• Kothari Petro Chemicals Ltd

[26]

• Sourashtra chemicals Ltd

• Grassim Industries Ltd

• Tata Chemicals Ltd(Gujarat)

• Sree Rayalaseema Alkalies and Allied Chemicals Ltd

• Indian Rayon and Industries Ltd

• Jayashree Chemicals Ltd

• Centuary Rayon

• Kothari Chemical Ltd

• Bilt Chemical Ltd

• Southern Petro Chemical Industries

• Gujarat Alkalies &Chemicals Ltd

• Sirpur Paper Mills.

2.7. CUSTOMERS

Hindustan Lever Limited-Cochin, Kerala.

Indian Rare Earths Ltd-Udyogamandal, Kerala

[27]

TamilNadu Paper Mills Limited Pugalur, Tamilnadu

Pigments India Ltd. - Chalakudy, Kerala.

Indian Oil Corporation. - Ernakulam, Kerala.

Mysore paper Mills Ltd. - Bhadravathy, Karnataka

Fertilizers & Chemicals Travancore Ltd. Ernakulam, Kerala

Travancore Titanium Products Ltd.-Trivandrum, Kerala

Kerala Minerals & Metals Ltd. - Kollam, Kerala.

Hindustan Zinc Ltd - All Units

Hindalco. Ltd -Ernakulam, Kerala.

Hindustan Newsprint Limited- Kottayam, Kerala

Kerala Chemicals & Proteins Ltd. Cochin, Kerala

Hindustan Organic Chemicals Ltd- Ambalamugal, Kerala.

Kerala Water Authority Trivandrum, Kerala.

Hindustan Insecticides Ltd.-Udyogamandal, Kerala.

Cochin Minerals & Rutiles Ltd.-Aluva, Kerala.

National Thermal Power Corporation All Units

Binani Zinc Limited- Edayar, Kerala.

Steel Authority of India Limited - All Units

[28]

ORGANISATION STRUCTURE

1. Org

MD

GMT

DGMT MM

FC

MMT

ME

MTS

MOP

MPJ

PM

MO

CSO

DO

SM

SSO

DFC

SAOGA&F

SAOCASH

SAOE&EDP

SAOCo

SAOPF

MIC

MS

MP

SY&IA

SEA

PLM

CETS

CEPC

MS

CEM

CEU&S

CES

CEE

SES

DMLT2

DME

DMU&S

SE

SE

OQC

SOQC

SETS

DMPr

DM (P&W)

ASPO

SE

PRO

AAOF

DMIA

APO

DMLT1

ME&I

CEI

DMHT

[29]

VARIOUS DEPARTMENTS:

Various Departments in TCC Limited

(1) OPERATIONS DEPARTMENT

[30]

(2) MATERIALS DEPARTMENT

(3) MARKETING DEPARTMENT

(4) TECHNICAL DEPARTMENT

(5) PERSONNEL DEPARTMENT

(6) H R D / TRAINING DEPARTMENT

(7) FINANCE DEPARTMENT

(8) ENGINEERING DEPARTMENT

(9) PROJECTS DEPARTMENT

[31]

OPERATIONS DEPARTMENT

(1)

(1) OPERATIONS DEPARTMENT

Structure of operations department:

[32]

Objective of Production department:

Reduce non confirming products.

MANAGER OPERATIONS

PLANT MANAGER

Dy.M (AREA 1) Dy.M (AREA 2)

MANAGER WORKS

Senior engineers

Process engineers

Engineer of plant

Senior engineers

Process engineers

Shift in Charge

[33]

Maximize the availability of electrolyze operation.

Optimizing the specific consumption of electricity, furnace

and purification chemicals.

Duties and responsibilities of operations manager:

• Head of the operations department

• Fixes monthly target of the product based on the market

requirement

• Responsible for modification in the production process and

and responsible for the affluent discharges

• Operations manager has the administrative control over the

operations department

• Operation manager is the designated emergency controller

during any hazardous incident i.e. leakage or emission of any

toxic gas or liquid.

Duties and responsibilities of plant manager:

• Custodian of plant

• Plant manager willl plan production activities to meet the

production of target set by the operations manager.

• Plant manager has the administration control of personnel

working in the plant

• Plant manager coordinate with other managers for smooth

functioning of the plant

• Plant manager is responsible for the material consumption

• Plant manager will plan the shut down activities and carry out

maintenance work of plants.

Raw materials:

The main raw materials of TCC are;

[34]

• Common salt (1.7MT of salt / ton of caustic soda).

• Electricity (27000 units / day).

• Water

Products and Production capacity

PRODUCTS QUANTITY / ANNUM

(METRIC TON)

CAUSTIC SODA 57750

HCL ACID 23760

SODIUM HYPOCHLORITE 172742

CAUSTI SODA FLAKES 15000

LIQUID CHLORINE 30000

Introduction to product:

Caustic soda and Chlorine are generally always discussed as a

combination, as they are in most case obtained as a co- product of

electrolysis of Brine. This process accounts for 80 % of caustic soda

and more than 95 % of chlorine production in India.

Products of TCC:

[35]

Caustic soda.

Caustic soda flakes.

Chlorine.

Hydrochloric acid.

Soda bleach.

Introduction to production process:

The process of manufacture of caustic soda and chlorine through

Ion exchange membrane involves following steps;

Primary brine purification.

Secondary brine purification.

Electrolysis.

Brine de chlorination.

Chlorine treatment.

[36]

USES OF PRODUCTS OF TCC:

USES INDUSTRIES

SERVED

A chemical for dissolving out extraneous

matter from wood for preparing pure

cellulose, for the production of viscose

solution.

Rayon and

pulp industry

A chemical for preparing pure cellulose

by dissolving out extraneous matter.

Paper and

newsprint.

Saponification agent. Soaps.

For processing of monazite and refining

of bauxite.

Mineral

processing

Hydrogenation of vanaspathi and oils. Vanaspathi.

Electrolytic hydrogen production of NH3

synthesis.

Fertilizers

Petroleum fractions

Refining.

Petroleum

[37]

Uses of Chlorine:

USES INDUSTRIES

For producing insecticides,

pesticides.

Insecticides

Purifying water, sterilizing sewage

effluents.

Water

purification

For bleaching. Paper and

pulp

PVC and allied co-polymers. Plastics

Bleach agent. Sugar

Manufacture of neoprene rubber. Rubber

industry

Use of Hydrochloric acid:

USES INDUSTRY

Production of ammonium chloride

manufacture of phosphoric acid.

Fertilizers

.

In monazite processing for the separation

of rare earth as chloride from thorium.

Minerals.

For the manufacture of PVC. Plastic.

Cleaning agent in galvanizing Engineeri

ng.

[38]

Use of soda bleach:

USES INDUSTRY

Sterilization. Sea food industry

Bleaching of jute, paper,

and pulp.

Paper and pulp

industry

ION EXCHANGE MEMBRANE CELL PROCESS:

For electrolysis, secondary purified brine is fed

to the anode chamber, purified water to the cathode chamber and

while applying DC current, movement and reaction of substance in

the electrolyser will take place.

In the anode chamber, electrolysis of sodium chloride occurs,

converting chloride ions to chlorine on the anode mesh. Sodium

ions move to the cathode chamber through the ion exchange

membrane. Generated chlorine gas and depleted brine flows up to

the anode gas separator by the driving force due to the lift effects,

where the chlorine gas is separated and the anolyte is recycled

over as depleted brine.

In the cathode chamber, decomposition of water occurs, producing

hydrogen gas and hydroxide ion (OH-). Hydroxide ion forms caustic

soda together with the sodium ions that are passed through the

membranes. Generated hydrogen gas and caustic soda flows up to

[39]

the cathode gas separator by gas lift effects, where hydrogen gas

is separated and caustic soda lye is recycled through the

circulation pipe, while a part of the caustic soda overflows as one

of the product.

Water in the anode chamber will move to the cathode chamber

through the membranes by electro-osmosis and osmosis.

Membrane does not permit the movement of chloride ions and NaCl

diffusion to the cathode chamber of the transfer of hydroxide ions

to the anode chamber. Transfer of these ions will result in loss of

current efficiency. Hydrogen ions if any, diffused from the cathode

chamber to the anode chamber will produce oxygen gas,

hypochlorite and chlorate by reacting with Chlorine gas.

BLOCK DIAGRAM OF MEMBRANE CELL PROCESS:

RAW

BRINE

SOLUTIBRINE

PURIFICATION

ELETROLYSIS

DECOMPOSITION

DECHLORINATION

Cl2 H2 gas 32% Caustic soda

Cl2 treatment H2 treatment CCF plant

Chlorine liquefaction

HCl synthesis unit

Sales

[40]

CCF Plant

General description of CCF Plant

This plant has one of the most advanced technologies.

It is suitable to produce export grade caustic soda flakes from

NaOH solution generated in ion exchange membrane cells and

liquid NaOH solution of 50 % concentration.

It is designed for optimum low energy consumption.

The equipment and plant are proven design and safe in

operation.

Duties and Responsibilities of Plant Manager

Plant Manager is the custodian of plant.

He plans the production activities to meet the production.

He is responsible for material consumption.

Plant Manager plans the shutdown activities and carries out the

maintenance work of plant.

Plant manager coordinates the operation functions with

managers of other department for the smooth functioning of the

plant.

FIRE AND SAFETY DEPARTMENT : The fire and safety

department is mainly concerned with the safety atmosphere in the

Liquid Chlorine Commercial

HCl acid

[41]

company. It takes measures for accident prevention and contains

the damages in case of accidents and safety hazards during the

production. This includes;

Giving fire training, safety training.

Maintaining hydrant points, hoses, and nozzles to make them

always ready to use.

Checking house keeping in plants.

Regular maintenance of fire water pumps and tanks.

Issuing personal protection equipments.

Accident investigation in case of accidents, to find out

reasons of occurrence and to take preventive measures.

Conducting safety mock drills.

Personal protective equipment used in the company is;

Gloves.

Face masks.

Respiration mask.

Welding shields.

Goggles.

Earplugs.

Safety shoes.

Helmets.

Skin protective ointments.

Gas masks.

Safety belt

[42]

MATERIALS DEPARTMENT

(2)

[43]

(2) MATERIALS DEPARTMENT

MATERIALS MANAGER

STORES PURCHASES

STORES MANAGER

DEPUTY MANAGER (SALES)

DEPUTY MANAGER (PRODUCTION)

SPOPO

DEPUTY MANAGER (IC&MI)

INVENTORY AND INSPECTION

[44]

Material is an important factor of production.

Materials department of TCC plays an important role in reducing

cost and increasing the profit. Going with the technical changes, it

has a computerized purchases inventory control system. The main

materials used in the industry are given a 10 digit code to avoid

complexities in handling. The materials department is divided into

2;

Purchase department

The department handles the purchase activities of TCC. The

various raw materials needed for production are procured by this

department. The materials are purchased at the right time in right

quantity from the supplier. Materials are procured as per the

request of inventory control section.

Steps in purchasing

• Purchase indent: Indenter raises Material

procurement request (MPR) to the inventory section.

• If the material is not available, the form is sent to

purchase department.

• Enquiry: Purchase department send enquiry to the

approved vendors on the receipt of purchase indent.

• Receiving quotation: Quotation are received and

opened by a committee which contains a member of

purchase department, one from finance and one from

internal audit.

• Preparation of comparative statement: Quotation is

tabulated and purchase department prepare

comparative statement. It is send to indenter

• Approval: It is verified by audit section.

[45]

• Concurrence from audit department is obtained.

• Purchase order: File is send to the concerned party.

Store and Inventory control department

Stores department stores the raw materials of about 6000 items

stored which include raw materials, chemicals, electronic goods,

equipment, sparer etc. The various items are given 10 digit codes

for easy handling. It has computerized system of material

handling.

Steps in receiving materials

• Visual inspection: To first check the purchase order.

Purchase order number is checked. Only after this the

material is received and stored.

• Preparation of receiving reports.

• Inspection report: Check whether the material is real.

Inspection is done by DMIC. Inspection report is made.

• Payment: Indenters check the material, receiving and

inspection report is dispatched to accounts department.

• Preparation of rejection report: If the material is not in

proper condition, goods rejection report is prepared. It is

send to purchase department. They inform this to the

supplier. New supply is done only after this.

Inventory control

[46]

Inventory control is an essential function of stores department. It

helps to reduce cost and increase profit of organization. If material

is not coded, codification is done by DMIC. For controlling the

inventory, certain levels of inventory such as maximum, minimum

and reorder level is prepared. When the stock reaches the reorder

level, purchase request is made.

Inventory Control Technique used at TCC

ABC Analysis: it is based on consumption. Here the inventory is

divided into 3 categories, ‘A’, ‘B’, and ‘C’ based on the value of

stocks. Among the various items in the stores 10 % cover 70 % of

total cost these stocks are included in ‘A’ category. Another 20 %

of stock covers 20 % OF total cost and falls in category ‘B’. The

remaining 70 % of materials in the stores contribute 10 % of total

cost of materials and are included in the ‘C’ category. Different

controlling techniques are applied for each category.

Objectives of Inventory Control

• Unwanted piling of inventory is prevented.

• Material codification to avoid duplication.

• To determine the item to be stored.

• To keep suitable records

• To determine which and how much to replenish.

• To disclose obsolete item.

[47]

MARKETING DEPARTMENT

(3)

[48]

(3) MARKETING DEPARTMENT

Dep. Marketing Manager

Director of Finance

A G M (Marketing)

Manager (Sales)

A G M

Asst. Sales Officer

Junior Assistant

Senior Assistant

[49]

Marketing department in TCC is product centered with

separate personnel entrusted to each product. TCC is the only

chlor-alkali company in Kerala. So firm has more or less

monopolistic market in Kerala. TCC gave primary important

towards satisfaction of customers. Type of market is buyer market.

Marketing department consists of an officer section and an issue

section. All documentation work comes under office section. All

works relating to sales comes under issue section. TCC will adopt

marketing strategy according to product nature, market situation,

demand of product etc. TCC gained about 80% of market in state.

The main functions of office section ;

Preparation of sales quotation, letters, amendments etc

maintenance of sales officers register, books and other

necessary information.

Preparation of sales budget, sales plan, monthly allotment

etc correspondence with parties, issue of sales officers and

follow up of routine and regular matters.

Preparation of sales orders, dispatch, and delivery notes etc.

Upkeep of all files up to date.

The mains function of issue section;

Preparation of schedule of dispatch and actual dispatch.

Execution of sales offers.

Advising parties about the dispatch effected.

[50]

THE MARKETING MIX:

Product

Products of TCC include Caustic soda, Caustic soda flakes,

Chlorine, Hydrochloric Acid and Sodium Hypochlorite. The

industries served are soap, insecticides, pharmaceutical,

chemicals, mineral processing, disinfectant, textile, rubber,

water purification and petroleum. The only branded product is

soda bleach and the brand name is “EKO CLEAN”.

Price

The Company has adopted a differential pricing

policy. The price is fixed through negotiation for long term

contracts. For small customers price is fixed from time to time.

PRICE LIST:

PRODUCT PRICE PER

TONN

(RS)

CAUSTIC SODA 25500

CAUSTIC SODA FLAKES 26500

LIQUID CHLORINE 9800

[51]

HCL ACID 3000

SODIUM

HYPOCHLORITE

4500

Pricing Policy

The Company has adopted a differential pricing

policy. An open body named Alkali Manufacturers Association of

India (AMAI) fixes selling price for a particular period. Price of

the product is fixed by adding the production cost, excise duty,

VAT and freight charges. Tenders are issued to the customers

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

satisfies the customers, the sales are done.

The major markets are Kerala, Karnataka, and Tamilnadu.

Except Caustic soda all other products are sold in South India.

Long term contracts are being entered with consumers. Price

concessions are given to long distance customers, taking freight

element into account. For transportation of the product, raw

materials, and also all other logistics purpose, company have

given contracts to outside agencies. The contract is placed for

each material and that is done in an annual basis.

Place

Channels include direct selling to customers. For

Caustic soda, there are agencies outside Kerala for marketing.

The entire marketing functions are done from company

Headquarters at Udyogamandal and not by any marketing office

outside company. All payments take place through State Bank of

Travancore.

[52]

Promotion

All the products are industrial products. TCC is only

manufacturer of the Chemical product in the public sector. But

it lacks a good promotion policy to withstand competition from

private sector. The customers are aware of the existence of

the company and when and how to get the product. Hence

there are not much promotional activities. Marketing factors is

price, which depends on the national and international price.

The company does advertise in some academic and trade

journals like Chemical Magazine etc. The promotional activities

are done also through company website (www.tcckerala.com).

The competitors

There are about 40 companies in India, which are producing the

same kind of product that of TCC. In the 40 companies 12

companies are in south India. All chemical industries are in private

sector except TCC.

• Chemfab Alkalies Ltd.Pondichery.

• KEM Pab alkalies Ltd.

• Andhra sugars Ltd.

• D C W.Ltd Mettoor.

• Kothari Petrochemicals Ltd.

• Tamilnadu Petro Products Ltd.

• SPIL, Chennai.

• Sree Royalseema Alkalies and Allied Chemicals. AndhraPradesh.

• Chemplast, Metoor.

• Chemfab. Pondichery.

• BILT, Karnataka.

[53]

• Sirpur Paper Mills, Andhra Pradesh.

Major customers of TCC are:

Hindustan Lever Limited-Cochin, Kerala

• Indian Rare Earths Ltd-Udyogamandal, Kerala

• Tamil Nadu Paper Mills Limited Pugalur, Tamilnadu

• Pigments India Ltd., Chalakudy, Kerala

• Indian Oil Corporation, Ernakulam, Kerala

• Mysore paper Mills Ltd., Bhadravathy, Karnataka

• Fertilizers & Chemicals Travancore Ltd., Ernakulam, Kerala

• Travancore Titanium Products Ltd., Trivandrum, Kerala

• Kerala Minerals & Metals Ltd., Kollam, Kerala

• Hindustan Zinc Ltd (All Units)

• Hindalco . Ltd -Ernakulam, Kerala

• Hindustan Newsprint Limited, Kottayam, Kerala

• Kerala Chemicals & Proteins Ltd., Cochin , Kerala

• Hindustan Organic Chemicals Ltd., Ambalamugal, Kerala

• Kerala Water Authority Trivandrum, Kerala

• Hindustan Insecticides Ltd., Udyogamandal, Kerala

• Cochin Minerals & Rutiles Ltd., Aluva, Kerala

• National Thermal Power Corporation (All Units)

• Binani Zinc Limited, Edayar, Kerala

• Steel Authority of India Limited, (All Units)

• Karnataka Soaps & Detergents, Mysore, Karnataka

• Nuclear Fuel Corporation Hyderabad, Andra Pradesh

• Kudramukh Iron Ore Ltd., Mangalore, Karnataka

• GTN Textiles Hyderabad, Andra Pradesh

Marketing strategy of TCC

[54]

Organization has adopted a strategy for their product nature,

market situation, demand of the product, competition etc. In

Kerala, TCC is facing an oligopoly. TCC gained about 80% of total

market share.

Market Analysis:

During the year 2005-2006, the company could achieve a record

turnover of Rs 1.26crores (including excise duty). This was due

to higher production, increased demand and better sales

realization. There was recession in the realization towards the

end of the financial year, but it was not reflected on Travancore

Chemicals Cochin Ltd, as the contracts were made earlier. The

indications are that the market will improve during the first

quarter of the next financial year.

Activities of Marketing Department: Whenever a

company places advertisement requiring chemicals like Caustic

soda, Lye flakes, with the specification for the chemicals payment

terms, quantity required, validity period, the companies ready to

supply (like TCC) will send tenders to the required company. This is

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

facts are specified.

a) Technical bid:

This means specifications about the product,

quality aspect of product, how much quantity can be given

within a period as specified by the customer company. These

terms are well explained in the technical bid.

b) Price bid:

[55]

This is the part of tender document, which

specifies the basic prices of the company products.

The document rate is given for bulk purchasers, payment terms are

also explained.

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

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

the purpose of assuring the customer company that if they accept

the TCC offer, certainly the product will be supplied to the

customer. The deposit will be refunded by the customer company

after the purchase is made. The EMD is only attached in case of

bulk purchases.

After accepting the offer placed by TCC the customer

company will place a purchase order. The purchase order explains

the details of the product, quantity, basic price etc. Sales order is

placed and will be verified by Deputy Marketing Manager (DMM).

He makes arrangement in respect of supplying the product to the

customer. The company is also supplying 2 – 3 tones of quantity to

small customers. The acceptance offer is usually by selecting

lowest price from the collected tenders, if price of TCC is higher

than any other parties those parties will be called upon and

negotiations will be done so as to bring the price lower. If price is

not lowered the offer will be rejected.

[56]

TECHNICAL DEPARTMENT

(4)

(4) TECHNICAL DEPARTMENT:

There are two main sections in this department

[57]

• Safety and pollution control

• Technical service section

Technical service section:

Reports are maintained on daily as well as monthly basis and

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

departments

Daily report:

• Daily production calculation

• Overtime reporting

• Daily production step

• Daily production report presentation

• Daily caustic soda pumping reports

Monthly internal report

• Production process report

• Material balance

• chlorine utilization

• raw salt analysis

• material consumption

• overtime monthly statement

Monthly external report:

• report to various government department and other agencies

[58]

The main functions of this section are

- production calculation and reporting

- production stock comparison

Production calculation is done for t he entire 24 hour after

receiving the data from the plants.

Safety Section:

The safety policy of the company states that

• TCC is committed to provide every one of its employees and

the related public an accident-free and healthy environment

in its efforts to manufacture high quality products at

competitive prices. The company will comply with all

statutory requirements in this regard.

• The company will provide a work environment in which

identified hazards are controlled, if elimination is not feasible

and will provide personal protective equipments wherever

necessary.

• Accident prevention is the direct responsibility of the Line –

Management and will be an important criterion for

performance appraisal. Line – Management will ensure that

all safety measures are incorporated in the operating and

maintenance procedures as well as in any process technology

changes in the plant/infrastructure.

• Consideration of health and safety will be given proper

weightage in selection and deployment of the personnel.

[59]

• The company will ensure that health and safety aspects are

given due consideration in decision regarding purchase of

plant equipments, machinery and materials.

• Every employee of the company shall perform his/her job

adopting Safe and proper work methods and using

appropriate Safety equipments understanding that their

career advancement is linked with SAFE performance.

• Contractors, sub-contract workers, transporters and visitors

entering the factory shall be required to observe health and

safety practices of the company in all their activities.

• All contract jobs will be carried only through the laid down

procedures with appropriate supervision.

• The company will carry out safety audits, risk assessment

studies, emergency mock drills, periodic assessment of

health of its employees as well as status of environment, and

implement remedial measures.

• Employee, consumer and public awareness where necessary,

will be imparted with the required education, training and

retraining on Safety and health aspects related to the process

and products.

• The company will include a resume of its health and Safety

performance in its annual Reports.

Safety Functions:

• Safety induction:

All new employees are given safety induction program.

This includes a general awareness about the factory hazards

and precautions use of PPE, use of fire extinguishers general

rules etc. Practical training on the PPE is also given.

[60]

• Safety inspection and auditing:

Inspection of the plant and facilities are done on a

regular basis to identify substandard condition and practices.

The concerned authorities are informed about the inspection

findings for taking necessary corrective action. Safety audits are

conducted as per the schedules and results intimated to the

management

• Safety training

Use of PPE, use of fire extinguishers and other safety

apparatus are conducted by the safety department for the

company employees. Further training on the safe handling of

Chlorine is conducted customers, agents, transporters etc.

• Safety awareness program:

Displays of posters leaf lets, preparing news letters, circulating

salient articles from safety publications etc are done as a party

of National safety day for participating and spreading the

message of safety among the employees.

[61]

PERSONNEL DEPARTMENT

(5)

[62]

MD

DF

AGM(HR)

Medical officer

Manager

(HRD)

Chief security officer

Public relation

Manager (personn

el & welfare

Dy. manager canteen

Ass. Personnel

officer

(5) PERSONNEL DEPARTMENT

[63]

Functions of personnel department

• Recruitment through professional and executive employment

exchanges and public service commission.

• Manpower planning – Ascertaining the number of vacancies

• Welfare functions – Including statutory and non statutory

welfare measures.

• Grievance handing – as per the provisions of Industrial

Disputes Act and as per Factories Act.

• Maintaining Company Discipline – As per Standing Order Act.

• Industry Relations.

• Public Relations.

• Job Description (Techniques)

• Job Specification (Techniques)

• Job Analysis (Techniques)

• Performance Appraisal

• Training.

• Staffing.

• Formulates and implements personnel policies

• Disciplinary action

• Wages and Salary Administration

• Administration

• Filing various returns relating to employees.

• Medical reimbursement schemes.

Educational Allowances

Up to 15 years services – 80 Rs per month

More than 15years service – Rs 100 per month.

[64]

Leaves

The number of leave/holidays in a calendar year will be as

follows:

Privilege Leave – 30 days

Causal Leave – 15 days

Sick Leave – 15 days (for workmen to cover under ESI scheme)

Holidays

Paid Holidays – 13 days (including four compulsory holiday)

Bata (Perquisites or Amenities)

The Bata rates for outside duty at Ellor and for workmen

deputed for duty in TCC Colony/water treatment plant will be as

follows

If workmen attend duty for four hours or more in a shift he will

be paid Bata as follows:

In 8 - 4 shift or 4 – 12 shifts - Rs 23

In shift 12 – 8 shift - Rs 10

Gratuity

Gratuity is paid as per the Gratuity Act

Bonus

[65]

Production Bonus

Production Bonus is paid on the basics of production. A

production linked bonus is given to the employees and this

scheme is called “Monthly Bonus Scheme – 1998”. As per this

scheme the employees cooperate to maximize production and

minimize consumption of raw material and eliminate wastes.

Attendance Bonus

Attendance bonus is paid to all permanent workmen on payroll

month basis along with wages for each month as per the

schedules given below. However in a payroll month in which the

working days stipulated below are inadequate and a workman

attended all the available working days, he will be paid full

Attendance Bonus.

• If attended normal duty for a minimum period of 24 days in

a payroll month – 2 days wage extra

• If attended normal duty for a minimum period of 22/23

days in a payroll month – 11/2 days wage extra.

• If attended normal duty for a minimum period of 20/21

days in a payroll month – 1 days wage extra

• Incentives – A zero accident incentive is given to

employees.

• Uniform – Cloth for stitching uniform will be issued every

year, as follows:

Permanent Workman – 2 pants and 3 shirts, terry cotton

Permanent Female Employee – 2 sarees and 3 Blouse pieces terry

cotton.

[66]

Permanent Security – 2 pants and 3 shirts, terry cotton.

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

Washing Allowance

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

Foot wears – All permanent workmen will be provided with a pair of

safety shoes every year .All female permanent workers will be

given a footwear allowance of Rs 150/-per year

Trade Unions – There is no labor unrest in the company for the past

few years. An atmosphere of trust and mutual understanding is

developed between Management and labor Union.

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

1) TCC Employees Association – Independent Union

2) TCC Employees Union - Affiliated to INTUC

3) TCC Thozilalee Union - Independent Union

The unrecognized unions are

1) TCC staff and Workers Association – Affiliated to AITUC

2) BMS

Methods of Training

[67]

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

Grievance Redressal

Grievance Redressal committee is Statutory. It is to be legally

maintained. Trade Unions are satisfied with the present conditions.

Hence in TCC Grievance Redressal Committee is not there, as here

exsists a good employee - employer relationship. Grievance

Redressal Committee consist of an experienced and efficient team

of personnel department.

Morale Level- the employee morale level is very good.

Welfare Activities are of 2 types

• Statutory

• Non statutory

Statutory welfare activities are as follows:

Canteen Crèches, Drinking water, Storing and Sitting, Bathroom,

Rest Shed, Welfare Officer, Gratuity, Ambulance, Dispensary,

Medical Officer, Washing Allowance, and Bonus under Bonus Act

etc.

Non Statutory welfare measures are Recreation Club,

Transportation subsidiary, Nursery School, Leave for part time

course, Library quarters, Accident benefits etc.

Various other incentives schemes:

• Higher Educational Loans with maximum limit Rs 5000 per

year.

• Scooter Allowances – 112.50 per month.

• Bus Subsidy – 75% of actual fare (Perquisites and Amenities)

[68]

• Tool Allowance – Rs 75 per month.

• Special Allowance.

• Higher Education Allowance

• Acting Allowance (Perquisites and Amenities)

• Privileges Leave (P.L). PL can be accumulated to 300 days

and sick leaves up to 120 days.

• HRA (House Rent Allowance) at the rate of 10% of the basic

pay (Perquisites or Amenities)

HRD/ TRAINING DEPARTMENT

(6)

[69]

(6) HRD/ TRAINING DEPARTMENT

Functions of the training department

a) Identifying training needs

b) Imparting the required training

c) Maintaining training records.

Scope

• The procedure covers all aspects of training. Arrange

suitable training for employees for updating skills based

on the identified training needs.

• Training advisory committee is responsible for suggesting

training requirements of the various departments and

disciplines.

• Formulating training program on yearly basis

• The committee proposes a training calendar every year.

• Training needs for the years are identified and recorded by

the department head.

The details are handed over to the training department by

respective department head. Training department does

compilation of the identified training needs of the employees.

Necessary training programs are arranged by training

[70]

department to cater the identified training needs of the

employees.

Training department organizes 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 requirement. When employees attend

training programs conducted in house, a feed back about the

usefulness of the training is obtained and consolidated. The

concerned department heads evaluates the feedback from

the participants after a period of 2-3 months to ascertain the

effectiveness of the training programs.

Employees are also sent for training to other reputed

institutions nominations for sending employees for training in

such institutions outside the company are put up for approval

of the appropriate authority as per the guidelines issued by

the company from time to time. The employees attending

outside programs submits a feedback on the trainee

undergone the training department.

The achievement against annual training calendar is reviewed

half yearly by department helps for the number of programs

held, number of employees participated for each programs,

the highlights of training effectiveness feedback etc.

The training department maintains a register on the training

program attended by the employees. Training department

maintains the format received from participants after getting

it evaluated by the concern department head regarding the

effectiveness of training. The managerial personnel of the

company are imparted training to improve their managerial

capabilities at the HRD centre of the company and outside

[71]

institutes depending upon the needs identified by the head of

the department.

Workers Participation in Management

TCC encourages 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

a) Canteen management committees.

b) Safety committees.

c) Shop floor committees

d) Grievance committees

e) Provident fund trust

f) Tri party committee

g) Complaint committee relating to sexual harassment

against women.

[72]

FINANCE DEPARTMENT

(7)

Finance controller is having the overall

responsibility of the finance department which includes the

coordination of audit, Board meetings and company taxation.

Deputy Finance Controller co-ordinates the function of bill

passing, establishment section, Debt collection, cash and bank.

The internal audit function is carried out in the company by

the internal audit section headed by the Chartered Accountant.

Regular reports are given to the department heads for taking

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

The company has an effective budgetary control system. The

budgets are reviewed and deviations analyzed and necessary

corrective action is initiated. Important variations relating to raw

BOD

DFM COSTING DFM MARKETING

A

O

G

A

A

O

P

F

A

O

E

D

P

A

O

B

I

L

L

S

A

O

C

A

S

H

A

O

E

S

T

A

B

L

I

S

H

T

DFM CONFIDENCE AND ESTABLISHMENT

SENIOR ACCOUNTING OFFICER

DFM CASH

DIRECTOR FINANCE

[73]

materials, furnace oil, electricity etc are analyzed and furnished to

various levels of management for are analyzed and furnished to

various levels of management for corrective actions. The key

budget factor is the power availability which is estimated and a

rough picture of anticipated power shortages is drawn up.

The main function of bill section is passing of bills, which

is done after checking quotation, order and products received/

work achieved. Bills are passed after seeing that the material

received is in conformity with the purchase order. The finance

department in TCC handles the Management Information System

(MIS).

Finance is considered as the vital part of any business

organization. It is the function which controls the procurement and

allocation of funds in the business operations. In TCC a well

developed and effective finance department is functioning.

Financial controller is the Head of the Finance Department

The main functions of the finance department are:

1. Generation of funds and Utilization of funds

2. Treasury Operation

3. Financial book keeping and finalization of accounts

4. Cost Recording

5. Sales Accounting

6. Bill Passing

7. Budgeting and Financial Control

8: Preparation of Wage Bills

9. Preparation of Invoice

A

O

E

S

T

A

B

L

I

S

H

T

[74]

Senior Accounting Officer confidential is reporting to DFM.

Preparation of Balance Sheet is done in the general accounts

section. TCC has an exclusive PF Trust for their employees.

Chairman of P.F Trust is F.C Company give money to the trust.

Trust invests this properly. Retirement benefit issued from here

itself. The company’s liability towards gratuity to employees is

covered by a Group gratuity scheme with the LIC of India.

Significant Accounting Policies

1. All revenues, costs, assets and liabilities are on the accrual

basis, except customs duty claims and insurance claims

2. Sales exclude excise duty and sales tax.

3. Inventories valuation

a. Stock-in- Trade: Caustic Soda lye and flakes are valued at

works cost or net realizable value, which ever is lower. By

products are valued at net sales realization during the year.

b. Raw materials, Mercury, packaging materials, fuel oil, stores

and spares are valued at weighted average cost

c. Tools and equipments are shown at revalued cost

4. All fixed assets are carried at cost less depreciation. Interest

on loan during the period is added to the cost of fixed

assets.

5. Depreciation

a) For plant and machinery depreciation is calculate don a

straight line basis specified in schedule XIV to the

company’s act, except for the membrane, whose life is

only 4 years.

[75]

b) For buildings, service equipment, furniture, fixtures,

office equipments, electrical installation etc.,

depreciation is calculated on a Written down value basis

at the rates specified in the Act.

6. In foreign exchange transactions all assets and liabilities are

translated at the relevant exchange rates at the end of the

financial year.

[76]

ENGINEERING DEPARTMENT

(8)

(8) ENGINEERING DEPARTMENT

[77]

The engineering department has been divided into four departments:

A) ELECTRICAL DEPARTMENT.

B) MECHANICAL DEPARTMENT.

C) INSTRUMENTATION DEPARTMENT.

D) CIVIL DEPARTMENT

ELECTRICAL DEPARTMENT

CHIEF ENGINEER

DEPUTY MANAGER ENGINEERING

SENIOR DRAFTSMAN

DRAFTSMAN

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There are two functions for this department:

A) OPERATIONS

B) MAINTENANCE

Operations:

Electrical supply is received from Kerala state electricity board

(KSEB) through substations. DC (Direct Current) is needed for

electrolysis and AC (Alternating Current) is converted into DC in

rectifier plants. AC is used for auxiliary purpose. The following are

the functions of the operational section

A) Ensuring uninterrupted Power supply

B) Man management

Maintenance:

Section is headed by a Chief engineer. In planning and

implementing on engineering works the section also provides

assistance to project development of new project.

MACHANICAL DEPARTMENT

Mechanical section found to be backbone of TCC. All type of

manual maintenance is handled by this section and look forward to

maintain the machinery in the best possible manner and ensure

healthy and sound flow of works within the organization.

Objectives

• To ensure all equipment engaged in production are in good condition.

• To cut down time of critical equipment.

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• To reduce cost due to inefficiency in equipment handling

The functional setup of maintenance department includes:

A) Electrical maintenance

B) Electrical utility – Air conditioner maintenance, plant lighting, motor for pumping water

C) High tension – Maintenance of high tension equipments

INSTRUMENTATION DEPARTMENT

Instrumentation is a section that comes under engineering department

• Main functions of instrumentation department are :

• Plant processing operation & Control of plant and equipment

• Keeping record for it

• The maintenance or up keep of equipments

CIVIL DEPARTMENT

Civil section is an independent department headed by chief

engineer. The main role of this section is the construction of the

building and other premises of the company. It is also engaged

with the social task to ensure the smooth flow of industrial

activities.

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The main functions of civil department are

• Maintenance of existing building.

• Painting and insulation.

• Tender issue for civil works.

PROJECTS DEPARTMENT

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9) PROJECTS DEPARTMENT

The main function of the project department is the execution of

new projects for the company. It is an independent unit with a

different function. Their main functions is to prepare feasibility and

to invite tenders for execution of new projects

GENERAL MANAGER

MANAGER PROJECTS

CHIEF ENGINEER PROJECTS

DEPUTY MANAGER PROJECTS

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• Functions of project department

• Involves planning , feasibility study and implementation of new projects

• Preparation of detailed report

• Preparation of feasibility report ( if it is approved by the management )

• Invitation of tenders through advertisement

• Evaluation of tenders

• Agreement

• Execution

• Hand over the new project to the operation department

The company has submitted the revised detailed project report (DPR) for the

enhancement of caustic soda production capacity from 175 TPD to 225 TPD by the

addition of another 50 TPD membrane cell caustic sod plant to the government for

approval. The revised project cost is Rs.53 crores and is proposed to be financed by

internal generation and commercial borrowing. The project implementation period is 22

month from the date government approval.

The company has signed a contract with UHDE India limited for the basic and detailed

engineering services for a horizontal brine saturator system and modification in the

existing secondary brine purification system in the caustic soda plant. In order to study

the technical and commercial feasibility of the proposal for supplying excess hydrogen gas

available after internal consumption to HOCL, Ambalamugal through underground

pipeline, the company engaged M/S. FEDO, udyogamandal to prepare a DPR. As per the

DPR prepared by FEDO the total estimated financial outlay for the proposal is

Rs.1923lakhs.

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The company has a proposal to transport raw material and products through barges with

the support of inland water authority of India. The total capital cost is estimated to be

Rs.188.62lakhs.

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SWOT ANALYSIS

STRENGTH

• The company is located at the centre of the industrial

belt where maximum consumption of Chlor-alkali

products takes place.

• TCC is the only Chlor-alkali unit in the state. So it has the

advantage in the pricing policy. It means that they can follow

a flexible pricing policy.

• Products of TCC are basic chemicals and are considered to be

building blocks of the chemical industry.

• TCC is the pioneer in the Chlor-alkali market and has created

reliability and credibility among its consumers.

• It has good strength of skilled work force, educated staff and

professionally qualified managers.

• Company has a very good track record of physical and

financial performance in the past.

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• Company has excellent infrastructure facilities including

nearness to national highways, railway lines, and seaport and

airport facilities.

• Natural resources like water are available as it is situated in

the banks of river Periyar.

WEAKNESS:

• Company has surplus manpower that is around 842

employees. Hence employee cost is high when compared to

industry standards.

• Logistics is difficult as the raw materials are to be bought

from distant places.

• Major markets are distantly located. So unit suffers increased

transportation costs.

• KSEB enjoys monopoly in supplying power in the state and

the staff size has undergone many fold increase in a short

span of time.

• Financial options are limited as the company is under the

State government.

• Delay in decision making is always there, especially in cases

related to product diversification and expansion of

production capacity.

Opportunities:

New project of synthetic rutile plant: Rutile companies are reaping huge profits in the

state due to the availability of raw material, within state. There is a high price in the

international market for rutile and related products.

Proposal for a Hydel project will benefit TCC and the power so obtained can be

utilized for running of the plants of TCC thus reducing the cost incurred on

electricity.

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

especially chlorine in near future.

Threats:

Hike in price of electricity.

The import duty policy of central government is not fair and caused periodic

fluctuations in the price of the company’s product.

The industry is in matured phase of life cycle, hence there is a low prospect

for growth and might be on a decline path if substitutes are not found out.

The infrastructure of the company is obsolete compared to others.

CONCLUSIONTCC Ltd. is a state owned undertaking engaged in

manufacture of basic chemicals like Caustic soda, Hydrochloric

acid, Chlorine, Sodium hypochlorite etc. These are required by

various industries within and outside the state. TCC’s products

have national reputation for quality and the company gives high

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priority to customer satisfaction. It is an inorganic chemical

company. TCC takes vital steps at the right time to make

innovations in technological up gradations as well as

organizational improvements, which had helped it to face problems

quite efficiently. Upton 1995-1996, company had recorded a steady

growth in production as well as in sales. After that period even

though the sales remain on an average, the company could not

make any profits. This was due to the implementation of

Membrane Cell Technology in place of Mercury cell technology. The

higher electric charges compared with other states also affected

the profits of the company. TCC enjoys a lion share of the market

in Kerala and would continue to do so.

The joy and hardship to build a good career was

reflecting from the Department heads at TCC, which has motivated

me to the greatest extent and fills confidence in me to face the

challenges in my life. As per the study conducted in the

organization, the capacity of production is increasing and the

company is moving into more profitable stages. The 25 days I

spent at TCC had created a concrete impression in the

development of my career.

FINDINGS:

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The major customers of TCC are pharmaceuticals companies,

soap industries, insecticides and pesticides industries, paper

industries and rayon industries.

The major competitors are SPIC and Chemplast.

Location preference, reference and quality are the major

criteria for selecting manufacturer.

Company follows management by convenience and not

management by objectives.

Pricing policy of TCC is an average, according to the

industrial standards.

TCC have a flexible credit policy, they give credit facility up

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

suppliers.

The customers have reported no rejection of TCC product,

which shows the product satisfaction.

In case of lead time, it was noted that order processing took

too much time due to lot of work.

The strength of TCC is the quality of their products, services

and the delivery.

No strikes have been reported for the last 10 years, it shows

the relationship of workers and management as better.

The company is depending heavily on electricity and around

60% of their product price is for this.

New technology of Membrane cell has the advantage of

pollution free environment and also it brings about 30%

reductions in electric power requirements.

No major environment pollution has been reported for the

past 50 years of operations.

Suggestion:

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The company must try to activate the R & D cell in order to have new inventions

in this field.

The company has to improve the supply of the product, if possible.

TCC should take certain adjustment in the price of the product.

In order to increase the production the company may try giving some motivation

to the employees.

For the smooth functioning they must invest a reasonable amount of working

capital.

The company shall take necessary actions to maintain the ratios at the standard

level.

Improve the first aid facilities by providing free medicines and treatments.

TCC should try necessary steps to increase the net profits.

TCC should persuade workers to use safety equipments.

MY EXPERIENCE IN THE ORGANISATION

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

BIBLIOGRAPHY:

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C.R. Kothari, Research Methodology, New Age

International Publishers, second edition, 2004.

Philip Kotler, Marketing Management, Prentice Hall of

India Private Limited, Tenth Edition, 2002.

Annual Report 2008-09, Travancore-Cochin Chemicals

Limited.

www. tcckerala.com

www.moneycontrol.com

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APPENDIX

COMMON ABBRIVIATIONS

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• GM: General Manager

• DGM: Deputy General Manager

• AOGA: Accounts Officer General Account

• AOPF: Accounts Officer Provident Fund

• AOC: Accounts Officer Cash

• MM: Marketing Manager

• DM (P): Deputy Manager Production

• DM (S): Deputy Manager Stores

• NaOH: Caustic Soda

• Cl2: Chlorine

• HCl: Hydrochloric Acid

• PM: Personnel Manager

• CO: Catering Officer

• CSO: Chief Security Officer

• M Ds: Manager Dispensary

• SI: Security Inspector

• ASI: Assistant Security Inspector

• DGMT: Deputy General Manager Technical

• DGMC: Deputy General Manager Commercial

• MHRD: Manager Human Resource Development

• MTS: Manager Technical Services

• CE: Chief Engineer

• CE TS: Chief Engineer Technical Service

• CEM: Chief Engineer Mechanical

• ME: Mechanical Engineer

• DERT: Deputy Engineer Technical

• SE: Sub Engineer

• MPJ: Manager Projects

• MOP: Manager Operations

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• EGM: Energy Manager

• MEI: Manager Electrical and Instrumentation

• MS: Manager Stores

• PLM: Plant Manager

• DMPR: Deputy Manager Production

• DFC: Deputy Finance Controller

• CE ( CP & ISO): Chief Engineer Corporate Planning and ISO

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