kmml os report
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organisation report on KMML, ChavaraTRANSCRIPT
1.1. An introduction to the study
Organizations play an important role all over the world. Global competitiveness and leadership in any industry or organization requires having masters in the core professions of the industry. It is the organizations that meet the people’s needs and provide them with products, services or both.
This organization study is aimed at gaining an understanding of the functioning of the organization as a whole, and also the various departments. The study helps to gain a realistic and factual knowledge about the functions of the organization. This report is based on the study done at The Kerala Minerals and Metals Ltd.
The Kerala Minerals And Metals Limited was taken over by the state government in the year 1956. The forerunner of KMML was The F.X. Perira and Sons (Travancore) Pvt Ltd., established by a visionary private entrepreneur. The unit was subsequently converted as a limited company in 1972 by the name of ‘The Kerala Minerals and Metals Ltd.’. The following are the broad objectives of KMML:
Optimum utilization of mineral wealth found along the sea coast of Kollam-Alappuzha Districts.
Large scale generation of employment in the state in general. Overall growth and development of the local area in particular and the state in
general.
KMML is one among the four producers of Titanium Dioxide in India. Titanium Dioxide is a pigment used in the production of various products like paints, medicines, cosmetics, printing inks, rubber, textiles, ceramics and paper. They also produce titanium tetra chloride, ilmenite, zircon, rutile, monazite, leucoxene, sillimanite and iron oxide bricks.
KMML is the leading producer of Titanium Dioxide in Kerala.
1.2. Scope of the Study
The study is conducted at The Kerala Minerals and Metals Limited, Chavara, Kollam, which is a well reputed public sector undertaking in Kerala. The study is aimed to understand the functioning of an organization and its various departments. The study also helps to gather an idea of the coordinated working of all the departments of the organization like the marketing, financing, human resource and the production departments.
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1.3. Objectives of the study
The objectives of this study undertaken is to
Acquire knowledge about the various functional and managerial aspects of the organization.
Find out the various departmental processes and its working. To understand the organizational profile, the structure of authority
and different levels of management.
To study the coordination among the various departments for the proper working of the organization.
To analyze the performance, key resources, strength and weaknesses of the organization
1.4. Methodology
The two methodologies used for this study were primary and secondary data collection.
The primary data were collected by interacting with the various department heads and other staffs. In-depth interviews with the managers of the various departments gave a clear idea about the respective department, its structure and its functions. The visit to the various departments of the organization also helped to understand the working of these departments. Hence observation method was also a technique used for data collection.
The secondary data were collected from the newsletters and journals of the KMML, also the various websites including the website of KMML.
1.5. Limitations of the study
Some of the limitations to the study were that the study was limited to the titanium dioxide production plant of the KMML. Time constraint was another limitation as the study was limited to 30 days only. Also the complex organization structure made it difficult to collect all the data. From the interviews with the employees and the other authorities, it is assumed that the data are authentic.
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2.1 ANALYSIS OF THE REMOTE EXTERNAL ENVIRONMENT
POLITICAL FACTORS
The company is subjected to the budget, and the auditing controls as applicable to
government activities. Also, being a public sector concern political interference has
been creating problem. There has been interference by the local politicians in the
activities of KMML. There was a recent petition filed in the high court mentioning the
political intereference in the company. KMML was set up at Chavara in Kollam due
to the high availability of ilmenite in the area. The state government had notified that
mineral sand in the shores of Karunagappally and Kayamkulam would be for the
exclusive use of KMML, a public company that exports titanium used mainly for
manufacturing aviation products. When ilmenite became scarce due to pilferage, the
company decided to process the mineral on their own from mineral sand. But this was
dropped later on, allegedly due to intervention of politicians. Instead, the company
issued tenders to purchase 12,000 tonnes of synthetic rutile, a mineral having higher
content of titanium than ilmenite, from outside sources, the petitioner alleges. The
Liberalization, Industrialization and Globalization also have an immense impact on
KMML.
ECONOMIC FACTORS
Exposure to global prices is double edged sword. The fluctuations in the global prices
of titanium dioxide affect the sales and the profits of the company. The products finds
a wide range of applications and hence the ups and downs in these industries also
affects the production of the company.
Ilmenite and Rutile finds use in variety of industrial products such as welding
electrodes, titanium metal sponge, titanium salts, synthetic rutile etc. The titanium
dioxide is also used in a variety of industries mainly in the production of paints,
printing inks, plastic, paper, rubber, textiles pharmaceuticals, cosmetics and ceramics.
The demands in almost all of these industries have been increasing which paved a
growth rate of its production. KMML is the only organization in India with fully
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integrated technology to produce titanium dioxide through the chloride path. Since the
plant is fully integrated, it helps in the profitable fixation of costs too.
SOCIAL FACTORS
Continuous emphasis is given to the safety of plants & personnel through continuous
upgradation of safety equipment and firefighting facility and rigorous training.
KMML also nurtures a performance oriented work culture with a comparative
mindset.
Increased customer focus and loyalty is one among the positives of KMML.
In the emerging competitive business environment, KMML is further shaping its
customer focus and providing customers with quality products.
KMML operates as a responsible corporate citizen, utilizing its resources for the
development of the local community. The company lends top priority in employing
the local people and also in suitably compensating or employing the people whose
lands were/are acquired by KMML. Of its total employee strength of 1770, 1067 are
local people who were affected by the project. This represents 60% of the total
employee strength. A number of social welfare schemes are envisaged and executed
taking into consideration the needs and aspirations of the local people.
TECHNOLOGICAL FACTORS
KMML have set-up a plant to manufacture titanium dioxide by chloride process. The
plant has an installed capacity of 22,000 TPY but the production is only around 9,000
TPY. The technology was provided by KMCC of USA. The Kerala Minerals and
Metals Ltd (KMML) is the world’s first fully integrated Titanium Dioxide Plant.
KMML is also India’s first and only manufacturer of Rutile Grade Titanium dioxide
by chloride process.
New innovative techniques are adopted and also the timely maintenance is ensured to
all the manufacturing plants as the company is involved in the production of
chemicals, which is very hazardous. Modernization, Capacity enhancement and
pollution abatement schemes are to be carried out on an emergency basis. The KMML
entered in to technical collaboration with three multinational corporations M/s. Kers
MC Gee Chemical Corporation of USA, M/s. Benedict Corporation of America, M/s.
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Woodall Dukham of UK respectively for the above. The Metallurgical of Engineering
Consultants India Limited (MECON) a Government of India Undertaking did the
detailed engineering.
2.2. INDUSTRY PROFILE
2.2.1. GLOBAL SCENARIO
Titanium metal (Ti) is the ninth most abundant element found in the earth’s crust.
Aerospace and medicine are some of the common areas were the metal has
applications mainly due to its high resistance to corrosion. Mining of Ilmenite is
carried out in several countries like Australia, Norway, Srilanka, Malaysia, South
Africa and India. The total reserved of world Ilmenite is estimated to be
approximately 1722 million tones. Titanium dioxide is far more stable than any
other pigment. Its perfect non toxicity and chemical inertness makes it an ideal
choice as a white pigment. The light scattering property of finely divided titanium
dioxide is unmatched by any other non-material. The chemical is available in two
crystalline forms, viz. Anatase and Rutile, which are of much commercial
significance. This is because of the unique combination of its superior properties of
high refractive index, low specific gravity, high hiding power and non-toxicity. It
also has high tinting strength and dispersion properties as well as chemical
stability. The titanium dioxide market is unique and even when it is approaching
100 years old; there are still no functional alternatives that provide the same value
for the use of customers. The industry has gone through a metamorphosis in the
past decade. Looking over the next 20 years, at least some new Titanium dioxide
pigment will be made, though most of industries additional capacity will come
from expansion pigment consumption which rose sharply in Western Europe and
Asia/Pacific (excluding Japan) during the year 2000. East Asia is presently the
most attractive region in the world for Titanium dioxide.
2.2.2. INDIAN SCENARIO
In 1909, a German Dr Schumberg discovered the presence of monazite in the
Black Beach Sand of Manavalkurichi in the East Travancore state. The presence
of mineral sand in the coir being exported later led to the discovery of certain
other elements. The Geological survey conducted later on in India, established
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the occurrence of monazite and metals like Ilmenite, Rutile, Leucoxene,
Silmenite and Zircon. India has a wealth of titanium minerals with very low
ratio of resource to utilization. A sound titanium dioxide industry is essential to
ensure optimum utilization of these resources as well as to develop a vibrant
industry in the field of this strategic mineral. Although some technology base is
available in the country for both sulphate and chloride processes of titanium
dioxide pigment manufacture, additional imports of knowhow and technology
are considered essential to update the existing sulphate and chloride
technologies in the country. The Indian raw material may be upgraded to
synthetic Rutile of titanium slag before being exported to fetch better returns.
Presently synthetic Rutile is being manufactured in the country by IRE, KMML
and two other private companies. However there is no project to manufacture
Titanium slag which can be used for sulphate process, chloride process and also
for manufacture of titanium sponge. This gap needs to be bridged at the earliest.
2.2.3 REGIONAL SCENARIO
God’s Own Country is best owned with a long coastal belt. At present in Kerala,
TTP and KMML are the only two manufacturers who produce titanium dioxide
pigment. Indian Rare Earth Ltd (IRE), a Government of India undertaking has a
mineral separation unit in Chavara which separates minerals from the beach
sands. IRE also operates two mineral separation units, which are located in
Manavalakurichi in Tamil Nadu and Challarpur in Orissa. Firstly Travancore
products were started by His Highness Chitira Thirunal in 1946 and titanium
dioxide using the sulphate process technology. Later the KMML which was
situated in Chavara came into existence and started producing Titanium Dioxide
with the help of HCL acid process technology (chloride technology).
Present Status:
Titanium dioxide is a key ingredient in automobile paint production and
currently is in short supply. As the demand for cars and other consumer goods
increases so does the demand for titanium dioxide. The global titanium dioxide
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sector ended 2010 with prices soaring through the market. 2011 the industry
attained gains and are reported to be significant as well.
2.3. INDUSTRY ANALYSIS
2.3.1 INDUSTRY KEY PLAYERS
The major players in the titanium production industry across the world are as follows:
DuPont Co., Wellington, USA
Ishihara Ltd., Japan
Rhone Poulene, France
Bayer Lever Kusen, West Germany
Kemira Helsinks, Finland
Hoitex (USA)
Millenium (Germany)
Henduk (Seoul, Korea)
Fletcha Titanium Products (New Zealand)
Tofins(Netherlands)
There are only four major manufacturers of titanium dioxide in India, and KMML is
the only completely integrated producer of titanium dioxide among these
manufacturers which puts KMML in the leading position as the titanium dioxide
manufacturer in India.
The major competitors are:
1. Travancore Titanium Product Ltd (TTP), Trivandrum:
Travancore Titanium Products Ltd (TTP), is a manufacturer
of anatase grade titanium dioxide in India. The company was incorporated in
1946 at Thiruvananthapuram, the capital of Kerala, India on the initiative of Sir
C.P.Ramaswamy Iyer.
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2. Kilburn Chemical Ltd, Chennai:
Kilburn Chemicals Limited (KCL) is a leading producer and exporter
of Anatase Grade Titanium Dioxide in India. It produces Titanium Dioxide by
the Sulphate route. KCL also manufactures and exports the by-product Ferrous
Sulphate. KCL has commenced operations in November 1994.
3. Kolmak Chemical Ltd, Kolkata:
Kolmak Chemicals Limited manufactures Rutile grade pigments in India. It
offers TiO2 (Rutile), a pigment produced through the sulphate route. The
company serves paint and powder coating manufacturers; and plastic, coatings
paper, ink, and various other allied industries. Kolmak Chemicals Limited was
incorporated in 1977 and is headquartered in Kolkata, India.
2.3.2 COMPETITOR ANALYSIS
The Titanium Dioxide industry is growing worldwide. The Indian reserves of
Illuminate and Rutile is expected to be around 6 crore tones. Beach reserve is also
seen in Rathnagiri (Mahi), Ganjan (Orissa) and Srikakolam (AP).The reserve in
Kerala and Tamilnadu is around 25 million tones, there are about 20 million tones
reserves in Orissa. This information through right in to the possibilities of new
manufactures and competitions in Titanium Dioxide pigment Industry in the Indian
market with the increasing demand for the paints, rubber, plastic and printing ink etc.
The arrival of new manufactures will be more in the near future. This will ultimately
results in tight competition. The demand of TiO2 highly depended on the finished
products likes plastic, paint, rubber, paper, printing ink, etc. The demand for the high
quality Titanium Dioxide will increase the profitability of the business.
KMML enjoys the monopolist position in the titanium dioxide pigment manufacturer
in India. The Titanium Dioxide Rutile grade is produced only by KMML in India.
KMML has to face completion from world TiO2 producers due to liberalization and
globalization. It faces stiff competition with foreign companies like: DUPONT(USA),
MILLENIUM(Germany), ISHIARA(Japan), TIOFIN(Netherland),
KEMEGA(Finland), MONITOX(USA), KERSEMEGREE(USA).
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3.1. OVERVIEW OF THE ORGANISATION
3.1.1. BACKGROUND AND HISTORY
Kerala is blessed with rich and extensive mineral deposits. This deposits stretch along
the sea cost between Neendakara and Kayamkulam, a track generally known as
Chavara coast. This deposits stretch up to a distance of 18 Km along the coastal strip
and having a depth of 8m. The dark sands of Travancore coast are rich in mineral
deposits as Monazite, I1lmenite, Rutile, Zircon etc.
The company is located at Sankaramangalam near Chavara, Kollam a coastal town 85
km north of Thiruvananthapuram. KMML is situated on the side of NH-47 to about
285 acres in area. KMML has a worldwide reputation, a socially responsible company
with an eco-friendly image. The company derived strength from its dedicated
manpower and customer organization. KMML is fully owned Kerala Government
Enterprise. There are about 2000 employees in the company at present that helps
KMML to grow.
History of KMML
In the earliest periods of 19th century, precisely in 1909 a German scientist named
Mr. Schaumberg happened to discover traces of I1lmanite and monazite in the black
beach sands of Chavara coast in the Kerala state of India.
Schaumberg who was then working for an English firm got the sand exported to
England. At that time there was great demand for monazite because of its wide
application in the mantle making of gas lights. Continued efforts of German led to the
discovery of other minerals such as Rutile, Zircon, Silmanite etc in large volume in
the sand of Chavara coast between Neendakara and Kayamkulam. The discovery of
monazite was quite accidental. Even though the German laid foundation for a mineral
separation plant at Chavara its activities were curtained by World War2.
The first full-fledged mineral separation plant in Chavara was established by a private
entrepreneur in 1932 as F. X. Pereira and Sons (Travancore) Pvt. Ltd. They were
involved in mining and separating mineral sands into various constituents like
Illmanite, Monazite, Rutile, Zircon, Leucoxene etc. During 1956 this concern was
taken over by the state government and was placed under the control of its industries
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department. The unit was converted as a limited company with effect from 1.4.1972
in the name of "The Kerala Minerals and Metals Ltd".
Initially the company had only one unit known as 'Mineral Separation Plant'. In 1974
the company received intent for the production of Titanium dioxide (Ti02) pigment
using Chloride process. In 1976 KMML registered its 2nd unit known as Titanium
dioxide Pigment Plant. Its construction started only in 1979 and total capital cost was
Rs.144 Crores. The plant was commissioned in December 1984. KMML became the
first and only Integrated Titanium dioxide plant in the world.
Even though KMML was commissioned in 1984 it was not able to operate efficiently
due to technical problems. Due to these problems the company has to suffer an
accumulated loss of more than the capital investment over a period of 8 years.
In the above circumstances it was in 1991 that the entire personnel of
KMML from top management to down to the lowest workers started to think
individually and collectively about the requirement of a 'Turn Around'. A strategy was
planned and implemented with the wholehearted support of the workforce during the
period 1991-1993.1t started to yield results and the Company attained the breakeven
level by 1993.From 1993-1994 onwards, the company started to make profits and
wiped out the entire accumulated loss within a few years and repaid the long term
loans. Thereafter, it is the story of success and growth.
INCORPORATION OF KERALA MINERALS AND METALS LIMITED
Kerala is a land enriched with heavy mineral deposit. This richness evolved the
formation of the company Kerala Minerals and Metals Limited (KMML). It was all
way back in 1909, when a German Chemist namely Dr. Schaumberg noticed some
brown sand particles sticking with coir exported from India. He realized that the
particles present were Monazite leading to the discovery of vast deposits of Monazite
in the black beach sands of Manavalakuriclll in the east Travancore state. Late the
Geological Survey of India established the occurrence of Monazite and other earth
minerals like limonite, Rutile, Leucoxene, Sillimanite and Zircon. M/s. F X Pereira &
Sons (Travancore) Private Limited were the pioneers who established the first full-
fledged Mineral Separation industry in Chavara area way back in 1932 using the dry
separation process. Gradually the company found itself in financial crisis and in
January 1956, the Kerala State Government took over the company and continued
under name F .X.P Minerals in 1972 the Government renamed the name of the
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company as The Kerala Minerals and Metals Limited (KMML). At present KMML
consists of two units, the Mineral Separation Plant and the Titanium Dioxide Pigment
Plant.
TECHNICAL COLLABORATION
The KMML entered in to technical collaboration with three multinational
corporations M/s. Kers MC Gee Chemical Corporation of USA, M/s. Benedict
Corporation of America, M/s. Woodall Dukham of UK respectively for the above.
The Metallurgical of Engineering Consultants India Limited (MECON) a Government
of India Undertaking did the detailed engineering.
3.1.2. COMPANY VISSION, MISSION, AND VALUES
Vision of KMML
KMML has a vision to be the world class producer of mineral sand based
value-added products.
Mission of KMML
1. To become the noble agency for promoting and establishing minerals based
industries in the state to ensure value addition and effective and controlled
exploitation of the mineral reserves.
2. To develop adequate supply base for the services and utility for
development of the mineral based industry.
3. To create more awareness about corporate social responsibilities for
chemical industries in the state.
4. To become the leader in controlling greenhouse gas emission so as to
promote the concept of green earth.
Objectives of KMML
1. To exploit the mineral wealth abundantly available in the coastal belt.
2. To manufacture value added product like Titanium Dioxide and Titanium
metal through chloride route technology.
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3. Large scale generation of employment in the state.
4. Overall development of local area in particular and state in general.
3.1.3. PRODUCTS AND MARKETS
The nature of business of KMML is that it is a ‘Manufacturer of Titanium
Dioxide’ as the primary product. Bringing more to your everyday life, KMML
touches you in numerous ways. Be it the dress you wear, the cosmetics you use,
the medicines you take, the paints you decorate your home with or the utility
plastic products, our products are there. It is the only integrated Titanium
Dioxide facility having mining, mineral separation, synthetic rutile and
pigment-production plants. Apart from producing Rutile grade Titanium
Dioxide pigment for various types of industries, it also produces other products
like Ilmenite, Rutile, Zircon, Sillimenite, Synthetic rutile etc. Manufacturing
Titanium Dioxide through the chloride route, KMML produces very pure rutile
grade Titanium dioxide pigment. The different grades churned out by KMML
under brand name KEMOX has a ready market which asks for more. The
commendable work in research by the R&D department has also helped KMML
to add more colors to its portfolio.
KMML always maintain high standards of perfection, achieving technical
excellences in every phase of production. Catering to strict guidelines, KMML
offers a wide range of products for quality conscious customers. KMML offers
Rutile grade Tio2 as the main product and also offers zircon, leucoxene,
titanium tetra chloride as the secondary products. Titanium tetra chloride is
extensively used in manufacture of titanium dioxide pigment, titanium sponge
or metal.
The main products of KMML are:
Titanium Dioxide Pigment (Rutile)
KEMOX RC 800
KEMOX RC 808
KEMOX RC 822
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KEMOX RC 813
Titanium Tetra Chloride
Ilmenite
Rutile
Leucoxene
Zircon
Silliminite
Monazite
Iron oxide bricks
Applications:
KEMOX RC 822 from KMML is a multiple application pigment, which is in
great demand in the world market. The production of other grades of Titanium
Dioxide pigments like RC 800, RC 813, RC 822 and RC 808 has its own
importance in the world scenario. Minerals like Zircon and Monazite are used in
the development of Nuclear Technology. The manufacture of Iron oxide bricks
from the waste Iron Oxide, which is used for building purpose. The KMML
Titanium pigments are reputed for their high degree of gloss, tint retention
capacities and ease of dispersion.
The product profile of the KMML and their applications are shown in the figure
below:
Sl.No
Products Application
1 Titanium
Dioxide
Pigment
paints, printing inks,
plastics, paper, rubber,
textiles, ceramics
2 Titanium
Tetra
Chloride
Titanium dioxide
pigment, Titanium
sponge, titanium salts
3 Rutile Welding electrodes,
titanium compounds,
titanium dioxide
pigment
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4 Ilmenite Titanium dioxide
pigment, titanium
chloride
5 Leucoxen
e
Welding electrodes,
Titanium dioxide
pigment
6 Zircon Nuclear technology
7 siliminate High temperature
refractory
8 Iron oxide
bricks
As building material
Source: http://kmml.com/php/showContent.php?linkid=18&partid=2 Fig: 3.1
At present KMML produces six grades of titanium dioxide pigment under the
brand name of ‘KEMOX’. The different grades of Tio2 pigments that are
produce in the KMML and there uses are given below:-
Source: Marketing department, KMML Fig: 3.2
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Grade Uses
KEMOX
RC 800
Interior decorative and industrial paints and
most ink applications
KEMOX
RC 808
Used for coating with glass to which
prevents the spreading of water. This helps
the automobile industry to design the
vehicle without using any wipers
KEMOX
RC 813
Used for decorative and emulsion paints
KEMOX
RC 822
For powder coatings and industrial coatings
Major Consumers:
The marketing network of KMML is spread worldwide. KMML exports to the
developed and developing nations and has earned a two star rating as an
exporting house. The web of over 30 offices servicing 50 nations is the
backbone of the marketing network.
KMML’s products are supplied to industries all over the globe, including
countries like China, Korea UK, Philippines, South Africa, Turkey, Mauritius,
Dubai and Sri Lanka. At KMML, customer is the king. A team of motivated
marketing experts, who make it their business to find out your views, highlights
our customer consciousness. Maintaining close contacts, they are perfectly
aware of the customer’s needs and are instrumental in offering world-class
services and prompt attention to your every requirement.
Major customers in the domestic market are served directly by the company.
KMML has an all India network of 28 stockists to meet requirements of our
customers. Paint industry is the prime user of Ti02 pigment in India as well as in
the foreign countries. Recently the automobile industry also extensively uses
Ti02 pigment. Customers are divided into two:
1. Direct customers
2. Stockists
Direct Customers
Paint industry contribute large customers of Tio2, other largest customers include
such industrial as paper, plastic, polyester. The bulk of the products in KMML are
consumed by companies namely Asian Paints, Berger Paints, Rajdhoot Paints, Mega
Meditex, Camlin, Jenson & Nicholson, Hindustan Latex & Resin, Finolex, Shalimar
Paints, Sanderson Chemicals, Plastic Chemix Industries
Stockists
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Supplies to small sectors are done through stockists appointed by the company in all
major cities. Company fixes prices for its products and the stockiest are responsible to
see the pellets at fixed price. KMML has an all India network of 28 stockists to meet
requirements of customers. Some of the major stockists are Ashit Enterprises, Kemco
Corporation, Hero Dye Chemical Industries, Bharat Solvent & Chemical Corporation,
Balaji Export House, Karnataka Chemicals, Manorama Sales Corporation, Bajaj
Chemicals etc.
3.1.4. AWARDS, RECOGNITIONS, AND CERTIFICATIONS
CERTIFICATIONS
KMML achieved ISO 9002 certificate by M/S Bureau virtues Quality International
(BVQI) and holes certification of United Kingdom Accreditations Service. Dutch
Council for certification (Holland) and Register Accreditations Board (USA): KMML
has won the 1997 National award for in-house research and development effort in
industry for technology absorption under the TAAS program. The Kerala productivity
Council award for high productivity standard has also been won by KMML
ISO 9001: 2000 (Quality Policy)
KMML was certified for quality management system ISO9002:9004 in June 2000
and was rectified and upgraded to ISO 9001:2000 quality management systems
(QMS) in November 2003 for its TP unit.
ISO14001:2004 (Environment policy)
KMML has been certified an ISO 14001:2004 in the year 2005. As recognition of
protecting and safeguarding the environment by
Strictly complying with the statutory and regulative requirements.
To control their impact on land, air and water and thus prevent pollution.
To reduce health and safety risks.
To optimize the use of resources.
OHSAS 18001: 1999 (Occupational Health and Safety)
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The manufacturer of synthetic rutile and rutile grade Tio2 are committed to
protect health and safety of the employees and everybody involved in this activity of
the company. The company complies with health and safety regulations and other
requirements to which they subscribe.
ENVIRONMENT QUALITY SYSTEM
KMML has formulated a comprehensive, systematic, planned and documented
manner of organization’s environment programmes.
Source: HR department, KMML Fig: 3.3
AWARDS AND RECOGNITIONS
Global Recognitions
International Gold medal Award for Quality & Efficiency from UK in 2003
APCJ Award from Asia Pacific Coating forum for the Best International
Marketing Campaign in May 2003
Other Awards
Award for R&D efforts in Industry 1992
FACT MKK Nair Memorial Productivity Award 1993 - 1994
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Environment Policy
Planning
Implementation & Operation
Management review
EQS
Checking & corrective action
Energy Conservation Award 1999
FACT MKK Nair Memorial Productivity Award 1999 - 2000
FACT MKK Nair Memorial Productivity Award 2000 - 2001
Energy Conservation Award 2001
CAPEXIL Award for best export performance2003, 2004 & 2005
Award for best revenue Performance- Govt. of India (National) 2003 & 2004
Pollution Abatement Outstanding Achievement Award– Government of Kerala –
2008
FACT MKK Nair Memorial Productivity Award 2009-2010
Best Performing PSU – Factories & Boilers, Govt. of Kerala 2010
Outstanding Achievement (entrepreneur performance) – Department of Industries & Commerce
2010
Outstanding Achievement (Pollution Abatement) – Department of Industries & Commerce
2010
Source: http://kmml.com/php/showContent.php?linkid=16&partid=1 Fig: 3. 4
Special Award for Exports from chemicals and Allied Export Promotion
Council (CAPEXIL) – 3rd time consecutively.
3.1.5. BUSINESS PERFORMANCES
The KMML strives to become the market leader of titanium products and an asset to
its stake holders. Delighting customers with world class products and services at
competives prices, perceiving the serenity of the environment and maintain the health
and safety of its employees and other persons involved with its activities are its core
values.
To enable it to achieve the said core values KMML shall be:
Committed to continually improve the effectiveness and efficiency of the
integrated management system.
Committed to comply with all applicable legal and other requirements.
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Committed to prevention of pollution, waste reduction, and resource
conservation.
Committed to prevention of occupational illness and incidents by
managing risk in work place.
Committed to continual improvement of processes by setting and
reviewing integrated objectives, targets and programmes.
Committed to achieve continual improvement in the areas of optimization
of processes, minimization of unit cost and maximization of production
and market revenue.
Committed to be ethical, air and transparent in every dealing with all its
stake holders.
3.1.6. STRATEGIC PLANS PROGRAMMES AND LONG TERM
OBJECTIVES
The KMML has various expansion plans for its future. Some of the future plans of
KMML are to expand its existing Ilmenite Beneficiation Plant (IBP) to 50,000 units
per annum capacity utilization. KMML also aims at expanding the Titanium Sponge
Plant which is jointly run by the ISRO DRDO, to 500 metric tons in collaboration
with AVISMA technology.
The company also aims in introducing a mineral research institute, titanium plant
oxygen plant, a new fluid dispend boiler, a Nano pigment production, titanium oxy-
chloride production, filter plus plant iron oxide cake production and additional
chlorinators and titanium tetra chloride plant. KMML also aims at an enhancement of
mineral separation plant and the implementation of social accountability standards.
3.2. ORGANISATION STRUCTURE
3.2.1. CORPORATE STRUCTURE
Chief Managing Director is the top official in the management of KMML. MD is
assisted by two General Managers. There are Joint GMs, Deputy GMs, Assistant GMs
and Managers in various departments or sections of the company.
19
Source: P&A Departmet, KMML Fig: 3.5
20
3.2.2. BUSINESS AND DEPARTMENTAL STRUCTURE
As in every organization KMML also has number of separate departments and
their respective executive heads. The functional departments of an organization
function or activities are categorized into different groups. The application of
functional form of department means grouping activities into departments of
production, marketing, human resource development and finance. Each
department specializes in its own area of production.
Functional department in KMML
Production department
Marketing department
Finance department
Material department
Personnel and Administration department
Fire and Safety department
Data processing department
Technical department
Project department
Maintenance department
Research and Development department
21
AGM (Utility)
Plant Manager400\500
Plant Manager300
Plant Manager100/200
Plant ManagerIBP
Plant ManagerARP
Deputy Plant ManagerPM
Deputy Plant Manager
Deputy Plant Manager
Deputy Plant Manager
Deputy Plant Manager
Plant Engineer
Plant Engineer
Plant Engineer
Plant Engineer
Plant Engineer
Assistant PlantEngineer
Assistant PlantEngineer
Assistant PlantEngineer
AssistantPlant Engineer
AssistantPlant Engineer
Deputy Manager (utility)
Operators/ Technicians
Plant Engineer
AssistantPlant Engineer
DGM (Production)
AGM (PRODUCTION)
AGM (PP/PB/IC)
Production Department Structure
Source: Production Department, KMML Fig: 3. 6
Maintenance Department Structure
22
Workers
Plant Engineer
Assistant PlantEngineer
AGM (Utility)
AGM (Utility)
Source: Maintenance Department, KMML Fig: 3.7
Finance Department Structure
23
DGM
AGM (Mechanical)
AGM (Electrical)
AGM (Instrumentation)
Manager (Civil)Manager
Deputy Manager
PE
APE
Worker
Manager
Deputy Manager
PE
APE
Worker
Manager
Deputy Manager
PE
APE
Worker
Deputy Manager
PE
APE
Worker
Executive Director
Source: Finance Department, KMML Fig: 3.8
Personnel and Administration Department Structure
24
Assistant General Manager
Manager
Deputy Manager
Accounts officer
Assistant Accounts Officer
Accountant
GM (P&A)/EDP
JGM (P&A) - HOD
M (Legal)
DM (P&A)
AOCanteen
PO’s SO
Medical superintendent
Manager(Welfare)
APO’s
Male Nurse
Dresser Cum compounder
PO
APO
Assistants
Assistants
Office attendants
Security Inspector
Security Guards
Attendants
Canteen supervisor
Cook
Assistant cook
Workers
Source: P&A Department, KMML Fig: 3.9
Marketing Department Structure
25
Source: Marketing Department, KMML Fig: 3. 10
Research development Department Structure
26
HOD
AGM
Manager
Deputy Manager
Marketing Officers
Assistant Marketing Officer
Senior Grade Assistant
1st Grade Assistant
2nd Grade Assistant
Junior Grade Assistant
Office Attendant
Deputy General Manager ( TS & RD)
Source: Research and Development Department Fig: 3.11
Materials Department Structure
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Assistant General Manager(TS & RD)
Manager (Lab) Manager (TS)
Scientific Officer
Assistant Scientific officer
Analyst
Deputy Manager
Engineer
Assistant Engineer
Deputy Manager
Scientific Officer
Assistant Scientific Officer
Analyst
Worker
Deputy Manager
Worker
HOD (Materials)
Source: Materials Department, KMML Fig: 3. 12
Fire and safety Department Structure
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Purchase
Manager
Deputy Manager
Purchase officer
APO
Peon
Store
Deputy Manager
Stores Officer
ASO
Charge man
Assistant Charge man
Worker
Deputy General Manager
Source: Fire and Safety Department, KMML Fig: 3.13
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Deputy Manager (Fire)
Leading Fireman
Deputy Manager (Safety)
Safety Officer
Assistant Safety Inspector
Fireman
Worker
Driver Fire Tender Safety Inspector
Worker
3.3. FUNCTIONAL ANALYSIS
3.3.1. PRODUCTION DEPARTMENT
The department is equipped with the latest state of art technologies. It strives to
accomplish a high standard by achieving technical excellence in every phase of
production. The plant works 24 hours a day with three shifts. Occasionally the plant is
closed for maintenance work.
Production department comprises two divisions:
i. Production planning division and
ii. Production division.
Functions of production department are to set standards and targets for each section of
production process, to monitor quality and quantity of products coming off from a
production line, to maintain a production schedule, so that other departments could
know about quantity of product produced in a specific period and to maintain a proper
co-ordination between other departments in KMML.
Production Process
Raw Ilmenite is chemically processed to remove impurities such as leaving the pure
white pigment. KMML is India’s first and only manufacturer of Rutile grade titanium
dioxide through chloride process. The chloride process produces Titanium dioxide
products by reacting titanium ores with chloride gas.
The chlorides of impurity metals are removed from Titanium Tetra Chloride through
various processes the recovery of Titanium dioxide. It is further purified by
distillation to obtain pure Titanium Tetra Chloride in liquid form which is stored in
storage vessels. Titanium Tetra Chloride is vaporized, preheated and oxidized with
oxygen in the oxidation plant to produce raw titanium dioxide at high temperature.
Beneficated Ilmenite (BI) is the raw material for the Pigment Production Plant. BI
from IBP is chlorinated in the chlorination plant to produce Titanium Tetrachloride.
Chloride reacts with Titanium dioxide and other metallic oxide impurities in BI, in th
presence of petroleum coke at a temperature of 9000 degree Celsius in a fluidized bed
chlorinator to produce chlorides of Titanium and other impurity metals. The raw
30
titanium dioxide is then surface treated with various chemicals, filtered and washed to
remove the salts, sent to the dryer and then to the microniser in the Surface Treatment
and Finishing Plant. The Titanium dioxide pigment is subsequently packed. The plant
uses recycling and regeneration methods at various levels of processing which ensures
negligent pollution.
i) Production Division
Manufacturing plant at KMML comprises Mineral Separation (MS) unit and Titanium
dioxide Pigment (TP) unit. The MS unit is where the separation of Ilmenite, Rutile,
Leucoxene, Monazite, Silliminite etc. from the beach sand takes place through various
stages in the Wet Concentration plant, Dry plant, Dry mill, Rutile and Zircon
Recovery plant. The unit employs gravitational, magnetic and high tension
electrostatic techniques for separation of minerals from sand. The TP unit is where the
raw Ilmenite obtained from the MS unit is taken for further processing through
various stages in Ilmenite Beneficiation plant, Acid Regeneration plant, Pigment
Production plant, Oxygen plant and Utility section. Titanium dioxide is manufactured
in KMML using chloride route.
The TP unit in KMML comprises the following units:
Ilmenite Beneficiation Plant (IBP)
Acid Regeneration Plant (ARP)
Chlorination Plant (Unit 100/200)
Oxidation Plant (Unit 300)
Surface treatment & Pigment Finishing Plant (Unit 400/500)
Oxygen Plant
Utilities
a) Ilmenite Beneficiation Plant
The plant functions on the basis of the BCA Cyclic Process Technology supplied by
M/S Benilite Corporation of America. The plant is subdivided into 6 major sections:
Raw material and Reluctant handling
Roasting & Cooling
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Leaching
Calcination & Cooling
Tank farm
The raw Ilmenite which contains 58-60% TiO2 is processed to obtain beneficiated
illmenite of 90 to 92% TiO2. This is the raw material for pigment production plant.
The ferric oxide in the raw Ilmenite is subjected to high temperature reduction to
ferrous oxide in the presence of petroleum coke at a temperature of 900 t0 950 degree
Celsius in the roaster. The reduced Ilmenite is then cooked and sent to digesters where
it is leached with HCl. The spent leach liquor is sent to storage tanks. The leached
Ilmenite after washing and filtering is calcinated to get Beneficated Ilmenite.
b) Acid Regeneration Plant
The spent leach liquor from pre-concentrator is processed in the spray roaser in which
liquid spray entering furnace is heated using burning oil. The spent liquor then
decomposes to metallic oxides and HCl. The HCl acid vapor is first cooled in the pre-
concentration and then absorbed in the wash liquor generated in the IBP.
c) Pigment Production Plant
The pigment plant is designed and installed based on the chloride process being
successfully operated by Kerr McGee Chemical Corporation of USA at Hamilton,
Mississippi.
There are five major sections in the plant:
1. Raw material handling Unit - 100
2. Chlorination Unit – 200
3. Oxidation Unit – 300
4. Finishing Unit – 400
5. Chemical Storage Unit - 500
Raw material handling: The solid raw materials, Beneficated Ilmenite and Petroleum
Coke are stored here.
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Chlorination Plant: Ilmenite is reacted within the chlorinator by chlorination process
to produce TiCl4 vapor and other metallic chlorides, at about 800 to 900 degree
Celsius. The metallic chlorides present in BI are mostly removed as solids initially
and the balance impurities are removed by adding special treating oil. The purified
TiCl4 is the product of U – 200.
Oxidation Plant: Aluminum chloride is added to liquid TiCl4, vaporized, preheated
and oxidized to produce raw pigment grade TiO2. The pigment and sand are made
into slurry and classified to remove most of the sand. The slurry of sand and raw
pigment of TiO2 is the product in this unit.
Finishing Plant: The raw pigment produced in oxidation section in slurry form
containing sand is the main feed to finishing section. The pigment is treated with
chemicals and size is reduced to impart certain qualities and properties apart from
removing all traces of sand. The processes here include sand milling, treatment,
filtration & drying, micronisation & Cooling, bagging/Palletizing. The section is
designed to produce 11 grades of pigment. These grades can be grouped into 3 major
categories dry hide grades, gloss grades, plastic / Paper grades.
Chemical storage: The various chemicals required are stored here fed to the finishing
section as required.
d) Oxygen Plant
The plant supplies about 99.98% pure oxygen. The air which is taken in the oxygen
plant is purified, liquefied and separated into oxygen and nitrogen.
e) Utilities
The unit includes boiler plant, water treatment plant, air compressor station, brick
making plant, effluent pumping station, furnace oil receipt, storage and transferring
section.
ii) Production planning division
Assistant General Manager is the head of the division. He along with his team
performs the following functions:
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Planning – Based on targets set by Board of Directors, fixes each day’s production
targets.
Implementation – Planning division hands over per day target to production division
for implementation.
Monitoring – It is done by collecting data on each day production rate and comparing
it with target rates.
Feedback – Feedback is given to the head of the division as well as to the production
division.
3.3.2. MAINTENANCE DEPARTMENT
The maintenance department is categorized into 4 divisions:
a) Civil
b) Mechanical
c) Electrical
d) Instrumentation
Functions of Maintenance Department
To carry out maintenance works in the plant
To carry out preventive measures to avoid machine breakdown
Ensure a safe workplace and to keep the various utilities on
To install new equipment, design, modify and fabricate a wide variety of
manufacturing and processing equipments
Objectives of maintenance department:
Optimize the use of equipments through effective maintenance
management methods.
Provide accurate data for maintenance and construction programs.
Systematically identify maintenance needs and deficiencies.
34
Monitor and document corrective actions, project expenditure and
accomplishments.
The maintenance department is headed by the Joint General Manager. He is assisted by an Assistant General Manager. The Electrical, Mechanical, Civil and Instrumental manager has Deputy Managers under them the Managers of all the four sections then the Project Engineers and the Assistant Project Engineers.
The department has six centres:
a) M1 – IBP/ARP/SU Area Maintenance: It looks after the mechanical maintenance
works in the IBP, ARP and service units comprising of boiler, water treatment plant
and compressed air station.
b) M2- PPP Area Maintenance: It is concerned with maintenance works in the
pigment production plant – Chlorination plant, Oxidation plant and Pigment finishing
plant.
c) M3- Central Maintenance Repair Shop, Vehicle Maintenance and Maintenance
Planning: It looks after general maintenance of workers of the plant including
maintenance of vehicles, material handling vehicles, cranes etc. and planning.
d) M4- MSDs and Electrical Repair Shop: It handles electrical supply system,
electrical maintenance works for all the plants and other areas.
e) M5- Instrumentation Repair: It controls the instrument maintenance work of all
plants.
f) M6 – Civil Section: It is concerned with civil construction and maintenance of all
plants.
3.3.3. FIRE & SAFETY DEPARTMENT
The safety department is supported by one safety officer, one safety inspector and
three technical officers whereas fire department is assisted by a fire officer, leading
fireman, and fireman and fire tender drivers. The department carries out the following
activities:
Routine plant inspection
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Plant safety inspection
Issue of safety work permits
Coordinating and organizing safety committee meetings
Safety education and training
Organizing safety promotional activities
Preparing and updating safety manuals
Coordinating safety audits and surveys
Functions of Fire and Safety Department are:
a) Assist and advise the management
The department assists and advises the management in the fulfillment of its
obligations with respect to various health, safety and environment factors.
b) Accident analysis
It can be agency wise analysis, body part injured analysis, frequency rate of accidents
analysis, severity rate analysis etc.
c) Mock drill
In order to handle the immediate situation an emergency preparation is very much
essential. They train the employees by creating accidents artificially.
d) Statutory approval or license
Required statutory approval and license are obtained by the safety department from
time to time.
e) Plant inspection
The safety inspector and assistant plant engineer carry out routine safety inspection.
The inspection list is sent to the concerned department and does the further follow up.
f) Accident reporting and Investigation
Accidents are reported to the dispensary by the supervisor of the injured person
through first accident report-form A1. Accidents are reported to management by
supervisors and Section Head through detailed accident report form. In case of
36
reportable accidents as per Factories Act, the factory manager sends the report to the
statutory authorities in the prescribed form.
All reportable accidents are investigated by the concerned supervisors. Selected ones
are investigated by Safety department and for serious accidents; the management
appoints a committee or a senior level person for investigation.
g) Safety Promotion
Employees are encouraged to participate in State or National level competition. Safety
essays, slogans and quiz competition are organized. Interdepartmental competition on
posters, housekeeping, personal protective equipment wearing and lowest accident
rate are organized every year for process plant and workshops.
h) Safety committee
There is a well-established central safety committee having equal number of
representatives from management and workers-8 from management side, 8 from
workers and 8 from trade unions.
i) Job safety analysis
The department is also concerned with the analysis of jobs and taking safety
measures.
j) Health and hygiene
There should be pre-employment and periodical health checkup for employees. There
is an occupational health center in the facility where the service of qualified medical
officer is available.
3.3.4. FINANCE DEPARTMENT
Finance department is the core part of any organization. It deals with both the
acquisition as well as allocation of funds. The finance department in an
organization is responsible for maintaining fair and just accounting, working
capital management, long term funding decision making, costing etc.
37
The finance department is headed by Deputy General Manager (finance) who is
assisted by a Manager, Deputy Manager, accounts officer and other officers
KMML has two independent production units & for each unit the company is
maintaining separate books of accounts. The units are called as Titanium
pigment (TPU) and Mineral Separation unit (MSU). Titanium Pigment Unit is a
chemical factory, under the Factories Act 1948, whereas Mineral Separation
Plant is a mining unit under the Mining Act.
The main function of this department is to collect all the receipts and make all the
payments and also to record all the transactions and prepare the final accounts. The
major functions of the finance department are as follows:
To maintain clear and perfect accounting system
Preparation of P&L account, balance sheet, cash flow statement, fund flow statement
Working capital management
Carrying out activities pertaining to short term and long term requirements
Dealing with financial institutions with matters regarding salary reimbursement, credit
arrangement, collecting payment from customers etc. is also the function of the
finance department.
The finance department consists of two sections:
a) Accounts section
b) Audit section
Accounts section
Accounting Policy of KMML
Convention
The final statement is prepared under the historical cost convention in
accordance with applicable accounting standard that was relevant to
presentational requirement of the Companies Act 1956.
Fixed Assets
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Fixed assets are stated at cost of acquisition and additional if any, less
accumulated depreciation, is provided at rates and methods prescribed in the
schedule XIV of the Companies Act on straight line method in respect of
plant and machinery and railway sliding belonging to TiO2 pigment unit and
written down value method in respect of all the asset of the company. The
depreciation is calculated on the basis of Companies Act and for income tax
audit it is added to the profit and recalculated as per the audit rules.
Excise duty
Excise duty on manufactured is accounted for as and when goods. Are
dispatched is accordingly no provisions is made in respect of duty due on
goods manufactured, but not dispatched nor included in valuation of stock.
Gratuity
Gratuity liability and leave is accounted on the basis of actuarial valuation.
Inventory System
Work-in-progress is valued at the cost and stock of raw materials,
chemicals, fuel and stores are valued at weighted average cost on month
Functions of accounting section
KMML maintains a clear and perfect accounting system. The main activity
of the Finance Department is Working Capital Management. Preparation of
Fund Statement, Cash Flow Statement, Balance Sheet, Profit and Loss Account
etc are also the activities of Financial Department. Secretarial work relating to
Board comes under the review of the Finance Department. Most of the activities
carried out by the Finance Department are pertaining to long term and short
term requirements of the operation, closing purchase bill, maintaining the
account of contractors, subcontractors, income tax deduction, salary
discrepancy, dealing with the financial institutions with imports and exports are
also the functions of the Financial Department.
Purchase Are Recorded And Analyzed
The Finance Department of the company keeps the accounts of purchase of
spare parts, chemicals etc and accounting entries are made in the books of
accounts of the company on day to day basis, on the basis of bills and
39
supporting vouchers of each item. Each voucher is essentially numbered to
avoid discrepancy. The company makes only miscellaneous purchase, as the
main raw material is mineral sand. The department analyses the details of
purchases afterwards.
Salary Section and Pay Division
The main function of the department is preparation and disbursement of salary
of officers, members of office staff and workers. The department keeps salary
register pertaining to each of the above sections, which facilitates charges in
salary due to granting of annual increments and deduction due from the salary.
The disbursing of salary is crediting the amount to the respective bank account
of the employee. The department is sending a detailed list of salaries; they have
arranged an ATM counter of ICICI Bank in the company compound. Certain
employees are paid by cheque. The department is maintaining sub ledgers for
deductions made in the salary such as PF, Insurance Premium Advance, and
Income Tax etc. Another important function is computation of income Tax. It is
deductions and prompts remittance to IT Department.
Sales and Revenue Accounting
The department is calculating and paying sales tax and central excise duty to the
concerned Government every year. The Government is earning a total income
of Rs.44 crores and Rs.14 crores by way of excise duty and sales tax duty from
the company.
Cash and Bank Transactions
The department does all the matters relating to the day-to-day cash transactions.
They receive and make payment for purchase and sales. The company is
allowed to collect cash up to the limit of Rs.20000/- is carried out by cheque or
DD as per direction of the Tax Authority.
Costing
Annual budget and cost sheet is prepared at the outset of every year and on the
basis of the department fixes the floor price of each product of the company.
Calculation of Depreciation
The department calculates the depreciation. Depreciation is provided on
40
straight-line method in the case of plant and machinery of Titanium Pigment
Unit and written down value method in case of other assets of the company.
Major Banks of KMML
ICICI
State Bank of India
State Bank of Travancore
Indian Overseas Bank
Audit section
Audit can be internal or external. The internal auditing section is in charge of
periodical audit. External audit includes: statutory audit, account general audit,
inspection audit, sales tax audit, income tax audit and cost audit.
3.3.5. Personnel and Administration Department
Human resource is one of the most valuable resources as far as a company is
concerned. The management of man is very important and challenging job. The
proper utilization of this resource will indicate whether a company is successful or
not. The story of KMML lies in the personnel and administrative department’s ability
to handle the human resource.
Personnel Department is concerned with the people’s dimension in
organization. The sincerity and dedication of the employees in KMML is a
major success factor. With a full-fledged Human Resource department, regular
training and refresher courses are part of the company life. Apart from skill
betterment, this course inculcates quality consciousness, safety awareness and
contributes to personality development. There are around 1121 employees in the
41
company. Join General Manager (Personnel and Administration) is the head of
the department.
Functions
The major functions of personnel department are as follows:
Man power planning.
Recruitment and selection.
Training & development.
Promotion & transfer
Retirement and superannuation
Grievance handling.
Labour Welfare Activities.
Discliplinary Proceedings.
MAN POWER PLANNING
It is one the most important activities carried out by the P&A department. The
primary objective is to ensure the availability of the required skill and
avoid/minimize redundancies. To achieve this objective, the management
forecast man power needs for the job requirement and explores various sources
of manpower supply. Earlier the man power requirement plan in KMML was
established based on the work carried out by the Engineering Consultancy
(India) Ltd. The company has now decided to preview manpower requirements
and entrusted Kerala State Productivity Council to undertake the work-study
and job evaluation so as to enable the company to arrive the required manpower
in future
RECRUITMENT AND SELECTION
KMML depends on Technical Employment exchange, district
employment exchange, and notification in company notice board and PSC for
recruitment. Direct recruitment is also possible. For this, KMML gives
advertisement through Malayalam and English newspapers published from
42
Kerala and other states of south India. Employees are classified into various
levels:
Senior executives
Middle executives
Junior level
Workmen
SELECTION
Various tools and techniques are adopted by the firm for the selection of
candidates for various categories of post. Application blanks are employed for
extracting the detailed bio-data of candidates. The company calls the eligible
candidates for interview. Practical and written test are conducted for selection to
technical post. For the post of clerical staff, written test and interview are
conducted. For direct recruitment, selection tests are conducted by Kerala State
Productivity Council, LBS and CUSAT. Final selection is made on the basis of
performance in the interview conducted by a panel consisting of BOD, MD, a
government representative and a subject expert. It is compulsory that for all
vacancies there must be medical examination to check the physical fitness of
candidates.
TRAINING AND DEVELOPMENT
KMML gives a lot of importance for its human resources. The company
believes that the success depends upon providing necessary training to the
employees. Training is provided to each and every employee in the
organization. The full responsibility of the training and development at KMML
rests on the shoulder of Personnel and Administration Department. The training
requirements of the employees are designed under the guidelines of the ISO.
KMML seeks training needs identification in the specified form from all
functional departments responsible to provide such identification on annual
basis before 15 March every year for preparation of annual training plan. In case
a training need for an individual crop up suddenly, the concerned department
head prepares the training needs identification form and forward it to
43
administrative officer who plans for the training by taking into account factors
such as:.
Training already acquired.
New skills to be imparted.
Qualification required.
Motivation or communication required.
TYPES OF TRAINING
Internal training
External training
Apprenticeship training
PERFORMANCE APPRAISAL SYSTEM
Performance is evaluated by an annual appraisal system. It is the traditional
rating system. Rating is done against 5 point scale.
Job evaluation involves 3 parts for workmen:
Job knowledge
Effectiveness
Personal attributes
The personnel appraisal forms in respect of employees in various sections are
being separately sent by Human Resource development department to
respective head of the department for getting the report completed and forward
the same to the personnel manager with remarks of assessing the reviewing
officers.
Trade Unions in KMML:
There are four trade unions in KMML
1)Titanium complex employees union (RSP(B))
2)Titanium complex employees congress (INTUC)
3)KMML Titanium employees union(CITU)
4)KMML Employees union(STU Muslim League)
44
WORKMEN CLASSIFICATION:
1. Permanent Employees: There are about 245 officers and 788 workers
working in the Tio2 pigment plant as permanent employees.
2. Employees Engaged On Contract Basis: These employees work on contract
for a limited period of time say one year or six months on specific terms and
condition fixed by the company. They have no preference for future
employment in the company. There are around 400 such workers.
3. Temporary or seasonal worker: These workers are employed when the work
load is more on certain season due to the increase in demand; more workforces
are needed to meet the production. In such cases temporary workers are
engaged. The services of such employees are dispensed with as and when the
need is satisfied.
4. Casual labour: Casual labourers are employed from people who lost their land
due to acquisition by KMML; they are engaged first as casual workers and then
absorbed as permanent employee when vacancy arises. There 10 casual workers
at present in KMML.
5. Apprentices: Apprentices work for a period of one year as part of their
training programmed as per Apprenticeship Act.
WORKING HOURS
The daily working of the company is on shift basis. There are 3 shifts for plant
and general shift for administration. The timing is as follow:
A Shift-6 am to 2 pm.
B Shift-2 Pm to 10 pm.
C Shift-10 Pm to 6 pm.
General-9 am to 5 pm.
3.3.6. MARKETING DEPARTMENT
The different activities of the marketing department include:
Sales
45
The department deals with both indigenous and export sales. Indigenous sales are
carried out in two forms:
Direct - The Company sells its products directly to customers. Asian paints, Berger
paints are two such companies engaged in direct buying.
Selling via stockiest - The Company sells the products to stockiest who in turn sell the
product to final customers.
KMML exports to more than 50 countries including USA, Italy, Spain, Greece, Sri
Lanka, China, Switzerland, Thailand, Nigeria, Peru, UK, Australia, Egypt etc. sales is
carried out in the form of three currencies – USD, Euro, Pound Sterling and it takes
place on three basis:
Free On Board, C & F, CIF
Annual Sales of TiO2 for the past five years are given below:
Year Domestic Sales of
TiO2 (MT)
Export sales of
TiO2 (MT)
TiCl4 sales (MT)
2008 - 09 31787.15 6678 909.36
2009 - 10 33013.55 4284.4 717.5
2010 - 11 6142 30758.52 1822.54
2011 - 12 3998.68 20727.56 1893.315
2012 - 13 1138 14077.585 1680.913
Source: Marketing Department, KMML Fig: 3.14
Some of the major customers of KMML are:
Asian Paints
Berger Paints
Hindustan Lifecare Limited
Jenson & Nicholson
Camlin
Plastic Chemix Industries
Sanderson Chemicals
Mega Meditex
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Product promotion
Some of the promotional activities adopted by the company are the annual stockiest
meet where the company introduces new grades of titanium pigment, advertisements
in trade journals and industrial magazines, participation in production shows and
overseas exhibition, brochureand interactive CD release
Handling customer complaint
The complaints received from customers are registered by KMML and
acknowledgement is sent to customers. The details of the complaints are entered in
Customer Complaint Register. The particulars about the progress of investigation and
nature of disposition are updated in the register.
3.3.7. TECHNICAL DEPARTMENT
The department acts as a third agency to the production and maintenance department.
Technical wing takes charge of R&D, Quality Control lab and Technical Services.
Research and Development
KMML maintains a fully equipped R & D facility in the area of pigment and paint
technology with a view to establish world class products and competitiveness. The
facility undertakes research, development and product improvement. Scientists and
engineers continuously pursue innovative technologies in the area of TiO2 pigment,
quality improvement and other related products.
Quality Control Division
In order to make the products move in the foreign market and to make their products
achieve the status of world class products, KMML maintains the quality standards as
per ISO 9002 – 1994 and got certified in the yaer 07-07-2000.
The quality department ensures:
Raw material inspection
47
Process inspection
Finished pigment inspection
Raw materials are inspected for TiO2 content, silica content, level of impurity etc as
per the specification fixed based on demand. Each supplier should send their quality
test report along with the materials. At KMML, all these materials are tested for
desired qualities and if it doesn’t match with test report provided by suppliers then it
will be rejected. Process inspection is done by both conventional and instrumental
methods. Samples are tested at both main lab and spot lab. Finished pigment is also
tested for qualities like colour, dispersion, Ph, oil absorption, gloss strength and
resistivity. If there is any fault then the whole batch will be reprocessed.
3.3.8. MATERIALS DEPARTMENT
All functions relating to purchase and storage of materials for the company is carried
out by this department. There are around 27000 raw materials used by KMML.
The main functions of material department are as follows:
Purchase
Storage
Inventory control
Purchase department
Purchase department is concerned with the procurement of the required raw material.
The different terms of payment include:
Direct payment
Through banks
Advance payment
Letter of Credit
Some of the major raw material suppliers are India Carbon, NPF Petroleum, Sree
Menakshi Agencies, Indian Rare Earths Ltd, Binani Zinc, Travancore Cochin
Chemicals, FACT, BP, Indian Oil
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The purchase process in KMML can be depicted as follows:
Source: Materials Department, KMML Fig: 3.15
Stores Department
Store Section deals with receiving the material, inspection of material, storage and
preservation, proper classification and codification of material, material handling,
issue and dispatch, stock records, store accounting and stock verification report
preparation.
Various documents are prepared by the stock section for the proper functioning of the
department the documents maintained is as follows:
Stores inwards book: On receiving any material to the store, it is entered in a
document called stores inward book (SIB).
Inspection of goods: On receiving any material and preparation of SIB inspection
request is send to the concerned technical office for technical evaluation and reports
are prepared on this basis.
Store received note: After the preparation of SIB and inspection of goods or materials,
Stores Received Note (SRN) is prepared. This is the document showing that the,
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Approval
Order to supplier
Material Receipt
Inspection
Issue to department
Price
Quotation
Enquiry
Intend
material received is accepted and payment can be made for it. The SRN is sent to the
Finance-department for payment. Four copies of SRN are maintained in KMML.
Usually the company gets a credit facility for 45 days.
Materials issued note: Any material is issued from the store only after receiving a
material requisition or Material Issue Note (MIN) .MIN contains all the details
regarding the material as well as the indenter.
Stock transfer note: For transfer of materials between store or contractors, for transfer
of material between store and section prepared, it contains details such as material
code, cost center, material description, unit and quality. It should be mentioned that
from which section and to which section is the transfer-taking place.
Material return note: Sometimes material issued from the stores may be returned. In
case Material Return Note (MRN) is prepared. It contains details such as the name of
the department from which the material is returned, value, quality, code, unit, balance
and reason for return.
Bincard: Bincard is a document attached to bin and it contains the quantities details
of material received, issued and closing balance.
3.4. Organizational Analysis
3.4.1 SWOT Analysis
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S
• Strong brand image.
• Monopoly nature of business.
• Price leadership.
• Availability of cheap and best quality
raw materials.
• Good R & D department
• Eco friendly and socially committed.
• Experienced, highly efficient and
competent manpower.
• Cordial relationship between
management and employees.
• Quality of product comparable with
world-class standards.
W
• Policy of the government.
• Excess of workers.
• Lack of motivation.
• Underutilization of resources.
• Delay in decision making.
• Weight variation due to atmospheric
effect on the packed product.
• External / Political / Government
interference in company affairs.
• Trade union dominated firm.
• Lack of captive power generation.
• Lack of sufficient land for expansion,
storing, hazardous waste disposal etc.
Fig: 3.16 Source: P&A Department, KMML
S – Strength
The availability of cheap and best raw material: The major source of raw
material is black sand. It is available at Chavara beach near KMML. And also
the mineral sand consists of Ilmenite, Rutile, Zircon, Silminate.
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O• Demand in domestic as well as
international market.
• Low competition, easy to be a market
leader.
• Steady growth of paint, plastic, ink and
cosmetics industries.
• Unexplored value addition sector like
Titanium metal, Zirconium compound.
• Technical collaboration with ISRO in
Titanium Metal Production.
• Faster growing Asian market where
manufacturing facilities are limited.
T
• Lower sales realization, giants like
DUPONT, Kers-Mc Gee Ishihara and
Crystals.
• Duplication chances by stockists.
• Existing infra-structure needs to be
replaced.
• Policy change of Central and State
Government regarding sand mining.
• Chances of being privatized in future.
• Cost of production will be higher due to
price hike of petroleum products.
Highly technical oriented: All the activities of the organization are
computerized and modern. Modern machinery and equipment are implemented
to conduct the manufacturing process.
Eco friendly and socially committed: The product manufacturers in the
organization are highly socio oriented in the sense that the quality of the product
will be high and does not harm the environment. Transparency and
accountability are specifically noted.
The cordial relationship with the management and the employees: At KMML
the relationship between the management and the employees is very intensive. It
means that the emotions and feelings of the employees are hypothetically
considered by the management.
Financial stability with retained earnings for meeting future expensive project is
a strength of KMML.
Good R & D department: The R & D programs of the organization are
admirable. A new venture for manufacturing Titanium metal is about to
commission.
W – Weakness
Over employment: The number of workers in KMML is excess than what is
required. Unnecessary apprentices, temporary employees and casual workers
are employed in the organization.
Trade union dominated firm: The unnecessary interference of trade union is a
drawback in the organization. It affects the smooth working of the organization.
Delay in decision making: A complex organization structure causes delay in
decision making. It is also very time consuming.
Under-utilization of resources: All the resources of the organization are not used
due to mismanagement, which results in wastage. It is not suitable for such an
organization.
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Policy of the government: The fluctuating governmental policy adversely
affects the organization. The company needs to get more support from
government.
Lack of motivation: Motivation is the primary aspect of any business
organization. The company is reluctant to make the employees emotionally
involved in their work.
O-Opportunity
Worldwide deposit of Ilmenite is decreasing day by day due to over
exploitation. Whereas in India only 10 % of total Ilmenite deposits are utilized.
Steady growth in users in the past few years. This implies that there will be
steady growth in the consumption of Titanium Dioxide pigment in future.
T – Threat
Chances of breakdown of machineries: Most of the equipments in the pigment
plant are about 20 years old. The chances of breakdown in future are high.
Since Titanium Dioxide is included in the Open General License (OGL) the
import duty on OGL items was reduced to 0% by the end of 2006. This helps
the foreign countries to market their products at cheaper rate.
Cost of production is high: Cost of production will be higher due to price of raw
materials like petroleum coke, burning oil and LPG will grow higher in the
future.
Chances of over exploitation of resources: Allowing private parties to mine
minerals in the future may be possible. This will result in over exploitation of
resources and also have foreign competitors to set up their plants in India.
OBSERVATIONS
Some of the observations made in the organization during the organization
study are listed below. Though it is the only integrated plant in world producing
53
TiO2 as a public undertaking, political interference resists the company to
become a giant in the industry. The inability of the management to control
effectively the resistance raised by the local people in some radical issues will
be great challenge to the company. A complex organization structure exists in
KMML. This leads to excessive delays in decision making and requires lot of
paper work. The increase in the export market indicates that the company
maintains a better relationship with foreign customers. The company has
adopted no special strategies to compete with the foreign competitors. Since
there is an absence of storage facilities for the chlorine gas which is liberated in
the oxidization plant, the company has to simultaneously work both the
oxidation plant as well as the chlorination plant. If any of them break down the
entire production work will stop.
CONCLUSION
Kerala Minerals and Metals Limited (KMML) under the Government of Kerala
is the India’s first and only manufacture of Rutile grade Titanium dioxide
pigment using Chlorides route. It has won National Acclaim for its impressive
performance. It produces about seven grades of titanium dioxide pigment and its
products range includes Titanium Tetra Chloride, Ilmenite and Rutile etc.
KMML has monopolistic position in the Rutile Titanium Dioxide pigment
industry in India. But the firm’s position has been severely hit by zero
percentage cut in import duties of TiO2 pigment in 2006. Moreover its existence
will be severely affected by the chances of issuing closing orders by the
Pollution Control Board of India. Like any other organizations, it also tries very
hard to sort out its weakness and designs new strategies for converting the
organization into an ever-flourishing organization.
Success of a company depends on the strategic management of all the available
resources. External and internal environment decide the growth of the company.
BIBLIOGRAPHY
• The Annual Report –The Kerala Minerals and Metals Ltd. 2011-2012
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• KMML, http://kmml.com/php/showContent.php?linkid=18&partid=2, accessed on April 15th, 2013
• Record output by KMML, http://www.thehindubusinessline.in/2003/04/09/stories/2003040900521700.htm, accessed on April 19th, 2013
• Titanium and the titanium dioxide industry, http://www.rsc.org/images/PDF1_tcm18-40441.pdf, accessed on 23rd April 2013
• USGS 2010 Minerals Yearbook- Titanium, http://minerals.usgs.gov/minerals/pubs/commodity/titanium/myb1-2010-titan.pdf, accessed on April 23rd 2013
• PIL seeks probe into ilmenite deal - Times Of India, 2013, http://articles.timesofindia.indiatimes.com/2013-03-18/kochi/37814156_1_kmml-mineral-sand-ilmenite, accessed on May 5th 2013
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ANNEXURE –I
Balance sheet as on 31st March 2011
Particulars As Per schedule
As on 31/03/2010 (Rs in Lakhs)
As on 31/03/2011 (Rs in Lakhs)
Shareholders’ Funds Share Capital Reserves & Surplus Deferred Tax Liability
A B C
3093.27 46188.50 1232.85
3093.27 45174.12 1184.47
Total 50514.62 49451.86Application of Funds Fixed assets Gross Block Less: Depreciation Net : Block Capital work in progress
InvestmentsCurrent assets, Loans and Advances Current Assets Inventories Sundry Debtors Cash and Bank balance Other current assets Loans and advances
Less: Current Liabilities and Provisions Current Liabilities Provisions
Net Current Assets
Significant Accounting PolicyNotes Forming Part Of Accounts
N
F
G
H
I
D E
S T
39210.24 17326.84 21883.40 15816.38 37399.78 3517.60
6810.45 6421.85 12144.93 559.83 10925.71 36862.77
24897.30 2368.30 27265.53 9597.24
33707.00 15903.03 17803.97 12661.25 30465.22 17.60
6735.46 4709.92 13808.32 707.91 7073.93 33035.54
11667.93 2398.57 14066.50 18969.04
50514.62 49451.86
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57