organisational study report on travancore titanium products ltd

TRAVANCORE TITANIUM PRODUCTS Ltd

1.1 GENERAL INTRODUCTION

An organizational study encompasses the study of organizations from

multiple viewpoints, methods and levels of analysis. The study has been carried out in

a production industry named Travancore Titanium Product Limited, Trivandrum

(TTPL). TTPL is a public limited company under the State Public Sector with

Government of Kerala owning 80.94% of the shares. Kerala State Industrial

Development Corporation (KSIDC) holds 7.91% and the balance held by the public.

In this industry there are approximately 826 Employees and 110 officers ,all work

with the view of improving efficiency, profitability, competitiveness and maintain

market leadership. The workers age limit is 58 and officers age limit is 60.TTP has

proposals to expand its capacity to 27000 tons per year, modernize and diversify in

stages to produce both Anatase and Rutile Grades of Titanium Dioxide pigment and

the new plants to this connection will be launched during the current year.

Travancore Titanium Products Ltd. was incorporated on 18th December 1946, to

produce pigment grade Titanium Dioxide from ilmenite, which is abundantly

available as placer deposits on beaches near Kollam, in the coastal state of Kerala,

India. The unit was promoted by the princely state of Travancore in collaboration with

the British Titan Products (BTP) Company Limited; U.K (now known as Tioxide

Group limited). The administrative control of the company was with a managing

agency, Indian Titan Products Company.

The company which started production at a modest rate of 5 tons per day increased its

capacity in stages to the present level of 40-45 tons per day. Till recently, Travancore

Titanium Products Ltd. was the only unit producing Anatase grade Titanium Dioxide

pigment, in India.

It is a matter of pride that the manufacture of a rare chemical like Titanium Dioxide

which was confined to highly industrialized nations of the west, was taken up herein

Trivandrum five decades. TTP was the only unit producing this white pigment, not

only in India, but also in the whole of South-East Asia.

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The plant has the capacity to produce both Anatase and Rutile grades of Titanium

Dioxide. The plant functions round the clock in 4 shifts.

This report gives an idea about the organization and its functions. The study also

gives clear picture about the different departments of the organization.

1.2 OBJECTIVE OF THE STUDY

To study the overall performance of the company.

To understand the actual functioning of the organization.

To know about the practical application of various learned theories in

the organization.

To make a SWOT analysis about the organisation.

To conduct Porter’s Analysis on the company

1.3 METHODOLOGY OF THE STUDY

This report is prepared on the basis of primary data and secondary data.

1. Primary data was collected using the following methods.

By informal interviews with the department heads.

Discussions with the managerial staff.

Personal and direct observation.

2. The secondary data was collected from the following source

Broachers.

Company records and journals.

Websites.

1.4 SCOPE OF THE STUDY

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The organizational study carried out at TTP mainly focuses on the major

functional departments and its functioning.

The study helps to familiarize with the company.

The study also provides a chance to know about the practical application of

various learned theories in the company.

The study also gives importance to the welfare of workers and how can we

motivate the workers so utilizing the full potential of them for the success of

the organization.

1.5 LIMITATIONS OF THE STUDY

Personal bias of the staffs in the company

The information provided by the people in the organization may not be

complete

There was a considerable amount of inhibition on part of staff for providing

information.

An in-depth study or analysis is not feasible in short span of time.

.

2.1 INDUSTRY PROFILE

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Titanium Dioxide (TiO₂) is an organic solid with a number of excellent

physical properties, which make it the principal white pigment of commerce. TiO₂ is

becoming increasingly dominant over rival white pigments such as white lead,

lithopone and zinc white. Its predominance is mainly attributable to three important

physical characteristics, which are a high refractive index, lack of colour and chemical

inertness.

TiO₂ found in nature is invariably coloured due to the presence of impurities

such as iron and other elements. Processing is necessary to produce pure TiO₂.Large

crystals of pure TiO₂ are transparent, but when finely ground to optimal particle size

they are highly opaque. TiO₂ pigments are distinct from coloured pigments because

the latter is characterized by selective light absorption in the visible spectrum.

TiO₂ also exhibits great chemical inertness. It has good heat resistance, with a

melting point of around 1840 °C. TiO₂ is also non-toxic, which has seen it displace

white lead in paints.

TiO₂ is polymorphous, showing three distinct crystalline forms:- rutile,

anatase, brookite. Only rutile and anatase are of importance technically and

commercially. These two modifications of TiO₂ differ in their basic structures and

some physical properties:

1. The refractive index of anatase is slightly less than rutile.

2. Rutile crustal structure modification exhibits greater stability than the anatase

form.

3. Anatase is less abrasive than rutile.

4. Rutile pigments impart greater durability than anatase.

2.1.1 TiO₂ pigment industry: Product demand

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The white pigment Titanium Dioxide accounted for almost two-thirds of

overall production capacity, translating to 3.17 million tons per annum. Furthermore,

TiO₂ also dominates the world market for white pigments, with a 75% share. Its

predominance is mainly due to a combination of excellent physicalproperties, in

particular, a high refractive index, lack of colour and chemical inertness. White

pigment such as white lead, lithopone, zinc sulphide, etc are to a greater extent, being

replaced by TiO₂.

The main industrial consumers of TiO₂ are paints and coatings, plastics and

paper, inks, ceramics, cosmetics, fibres, etc.

2.1.2 TiO₂ Demand and the World Economy

The onset of global recession in 1989 saw GDP plummets, resulting in

excessive TiO₂ production capacity relative to demand. This left manufacturers with

not only an over-capacity problem but also a product of reduced value. For example,

between 1989 and 1991 the decline in TiO₂ coupled with over optimistic capacity

increases, led to price falls in the US and Germany of 13% and 16% respectively.

Another good indicator of performance of the TiO₂ industry is the ‘Operating

rate’. The Operating rate is defined as the percentage of production capacity in use at

any given time. Throughout the 1980’s, which was seen as golden era by the TiO₂

industry, the world operating rate fluctuated between a healthy 92-97%.However,

with the onset of recession this dropped to a low of 85% in 1991 and more recently

83.5% in 1996.The 1996 rate was attributed to factors such as customer destocking, a

drop in demand for paper and increased competition between manufacturers. These

factors affected a sudden slump in TiO₂ price and ultimately curbed the operating rate.

Industry was evident with the chairman of SCM, one of the leading TiO₂

manufacturer, describing the 1996-operating rate as ‘devastatingly low’. The

operating rate usually declines through scaling down or even temporary closure of

plants.

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A host of other small manufacturers includes Kemira with production capacity

2,90,000 tons, Ishihara with 1,97,000 tons, Kerr McGee with 1,73,000 tonnes, Bayer

with 1,47,000 tons etc combined accounted for 1,796,000 tonnes representing 43% of

world capacity.

2.1.3 Major TiO₂ manufacturers in India

1. Kerala Minerals & Metals Ltd, Kollam, Kerala.

2. Kilburn Chemicals Ltd, Tuticorin, Tamil Nadu.

3. Colmack Chemicals Ltd, West Bengal.

2.1.4 Some TiO₂ manufacturers outside India

1. Shanghai Four-Pole Titanium Industry Co, Ltd, China.

2. Golden Bridge Industries , China.

3. Metal Titanium Co, Ltd, China.

4. HebeiYonGhui Chemicals, Australia.

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2.2 COMPANY PROFILE

Travancore Titanium Products Limited, an ISO 9001:2000 company is a

Public Sector Undertaking under the administrative control of Government of Kerala,

India engaged in the manufacturing and marketing of different grades of Titanium

dioxide pigments. It is situated at Kochuveli, Thiruvananthapuram in the State of

Kerala. It is established for the commercial exploitation of valuable natural resource

called illmenite. This material sand deposit stretches along the sea coast between two

tidal channels between Neendakara in the South and Kayamkulam in the North.

Titanium dioxide can be very economically processed out from this raw material,

illmenite. Travancore Titanium Products is the largest manufacturers and suppliers of

Titanium dioxide (Anatase grade) pigment in India with ISO 9001:2000 certification.

Titanium dioxide is an industrial raw material for textiles, cosmetics, paper, paint,

PVC and plastics, rubber, ink, electronic industries, chemicals, ceramics etc. The

process followed by Travancore Titanium Products Ltd for the production of

Titanium is Sulphate process using Sulphuric acid. In this process finely grind

illmenite is digested with strong sulphuric acid whereby titanium sulphate is produced

which is converted into TiO2 by hydrolysis. The main product of the company is

Anatase grade Titanium dioxide.

2.2.1 History of the company

Travancore Titanium Products Limited (TTP) is a Public Sector Undertaking

managed by Government of Kerala. It is the first Titanium dioxide manufacturing

company in India. This company was incorporated on 18th December 1946 with

capital Rs.1.7 crores to produce Titanium dioxide from illmenite. The proposal to start

a plant producing Titanium dioxide was first put forward by the then diwan of

Travancore Sir C. P. Ramaswamy Iyer. The illmenite for the production of TiO2 is

found on the beaches at Chavara near Kollam and 65 kms north of the Capital city,

Thiruvananthapuram. The unit was promoted by the then princely state of Travancore

in collaboration with the British Titan Products (BPT) Company Limited; UK (now

known as Tioxide Group Limited).The administrative control of the company was

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with a managing agency, Indian Titan Products Company. The company started

production at a modest rate of 5 tons per day, increased its capacity in stages to the

present level of 40-45 tons per day. The company started production in 1951.In 1960,

Government of Kerala undertook the management of Travancore Titanium Products

Ltd owing 80.94% of the shares. Then its production capacity was increased to 10

tons per day. A Sulphuric acid plant was also installed in the same year. In 1963, the

capacity of Titanium dioxide produced was further increased to 18 tons per day with a

commensurate addition to the sulphuric acid production also. A major expansion was

undertaken and completed with Rs.140 crores in 1973, when the production capacity

of Titanium dioxide plant was increased to 45 tons per day (15000 tons per annum). A

third acid plant started production with a capacity of 300 tons per day in the same

year. A new pollution controlled Sulphuric acid plant was established and started

production in 1996 which utilizes the tail gas recycling DCDA (Double Catalysis

Double Absorption) technology. The alkali scrubbing system incorporated there in

helps to keep sulphur dioxide emissions well within permissible limits and helps in

maintaining a clean environment. The Company started its first expansion programme

in 1957 for doubling the annual production was commissioned on 29th March 1996

2.2.2 Governing body of TTP

TTP is governed by the Board of Directors consisting of six members.

1. Managing Director

2. Executive Director

3. Principal Secretary of Industries Department-Chairman

4. Additional Secretary of Finance Department

5. Secretary of Industries Department

6. Government representative.

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Period of board depends on the government decision. The Government of Kerala

appoints Managing Director on deputation for a period of 3 years. Managing Director

heads TTP Ltd.

2.2.3 Vision of TTP

To be the largest producer of Titanium dioxide products and the most

preferred supplier

2.2.4 Mission of TTP

To ensure customer satisfaction by continuously improving product quality

and to earn a reasonable profit

2.2.5 Quality policy of TTP

To achieve customer satisfaction through continuous improvement of

processes, products, and human resource and by providing effective customer

service

2.2.6 Quality Objectives

Customer Satisfaction

Continuous improvement of process and product

Human resource development

Better and safe working environment

Caring for the community

2.2.7 Corporate Objectives

The objects for which the company is established are:

In India to do all or any of the following things:-

To promote the production and use of Titanium, Zinc, lead and other metals or

their compounds, derivatives and alloys and in particular Titanium pigments,

composite pigments and all other pigments.

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To carry in all kinds of research work incidental or relating to the production and

use of Titanium, Zinc, lead and other metals and their alloys and compounds and

prepare for market all such articles and other things and generally to carry an all kinds

of metallurgical operations.

To carry on the business of manufacturing chemists and of manufacturers,

producers of and dealers in sulphuric acid and other acids, alkalies and chemicals and

chemical substances of every description.

To carry on the business of roasters, smelters, refiners, rollers, galvanizers and

manufacturers of and dealers in Titanium, Zinc, Lead, and other metals and all

byproducts.

2.3 PRODUCT PROFILE

Travancore Titanium Products Ltd is one of the largest industries in

India that produces Titanium Dioxide (Ti02). The company is also manufacturing

Potassium Titanate, Sodium Titanate, low Phosphorus and Special grade Titanium

Dioxide comparatively in small quantities.

Titanium Dioxide (Ti02) is a white pigment and there are two grades of Titanium

Dioxide.

Rutile Grade

Anatase Grade

These two grades of Titanium Dioxide are chemically same but their physical

properties differ from each other. The company deals with the production of Titanium

Dioxide, which belongs to Anatase grade. The major raw material used for

production is Ilmenite. The most important commercial use of Ilmenite is for the

manufacture of Titanium Dioxide pigment. Ilmenite is a compound of the oxides of

iron, Titanium and traces of other elements. The separation of Titanium Dioxide can

be done through the sulphate route or chloride route. The Travancore Titanium

Product plant is based on the Sulphate Route.

Few grades of Titanium dioxide are produced namely

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Anatase – ISI Grade

Rutile Grade

Anatase PG

Rutile PG

Anatase GP

Rutile GP

In addition to TiO2, TTPL manufacturers small quantities of the following on

demand.

Potassium Titanate

Anatase Special Grade

Anatase (ISI)

This is a pigmentary form of TiO2 having the following desirable properties –

High brightness, tinting strength, good colour, excellent dispersion

characteristics in both aqueous and non-aqueous media. Suitable for use in

paints, paper, plastics, linoleum, rubber, leather finishes, soap and cosmetics

and other applications.

Rutile Grade

The major application is Plastic Master Batches, paint, Textiles. Substitute for

treated Rutile especially in plastics, paints, undercoats, printing inks, primers,

road marking paints, rubber ceramics, welding rods. Making quality seamless

welding possible.

Anatase (PG)

The product is highly suitable for plastic Master batch applications. It has been

substantially used for end applications like

a) Monolayer films

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b) Thicker 3layer films (>50 microns)

c) Sheets and Profiles

It has a very good whiteness Index, dispersability and filterability.

Especially recommended for high opacity tough films for detergent

packing and shopping bags.

Rutile (PG)

The product is recommended for products requiring more UV exposure and

can be used for making M.B.S. and compounds for both moulding and

extrusion. It can be used for making Yellows, Ivory, Beige and Oranges. Is

used extensively for thin gages HM – HD films

Anatase (GP)

General purpose pigment is recommended for use in non-decorative paints,

cement paints, distempers and rubber products.

Rutile (GP)

The major applications are ceramic, Paints, Plastics.

Potassium Titanate

Potassium titan ate possesses low thermal conductivity and high reflectance

ranging from ultra-violet to infra-red region. Used in the manufacture of

special quality welding rods, due to its high insulating property and high

melting point.

Anatase Special Grade

This low phosphorous Anatase grade is used in the manufacture of special

quality welding rods, due to its insulating properties and high melting point

2.3.1 Customers of TTP

The high grade Titanium dioxide enjoys a prominent presence in almost all

products we use in our daily life .In paint , rubber , textile , paper , and numerous

other products it is the ingredient .Major customers of TTP

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Table no. 2.1 Customers of TTP

Textiles

CTM Textiles, Rajkamal Processors, Sharada Textile Mills,

Bishen Dyeing printing & weaving Mills, Bimal Dyeing

printing & weaving Mills.

Ink Kores (India) Ltd, JBA printing ink Ltd, Coates of India,

Rainbow Ink & Varnishes.

Cosmetics Hindustan Lever Ltd, Colgate, Palmolive, Godrej soaps,

Karnataka soaps & Detergents.

Rubber Bata (India) Ltd, Lakhani footwear, Madras Rubber Factory,

Elastrex Polymers, Prestone Industries, Madhura Rubber, Leo

Rubber, Paragon Rubber, Relaxo Footwear.

Paper Pudmjee Pulp & Paper, Balakrishna Paper mills, ITC-Tribeni

Tissues, Sreevidhya Paper Mills, Sreekrishna Paper Mills, and

Security Paper Mills.

Leather National Leather Cloth

Paints Asian Paints Ltd, Goodlass, Nerolac Paints, Seepee Coating,

Special Paints, Rajdoot paints, Hem Paints, Serger Paints.

Chemicals Camphor & Allied Products, Dr. Beck & Company, Jay

Industrial Chemicals, National Paints & Chemicals.

Plastics Hycount Plastics, Padinjekkara Rubber & Plastics, Sudhakar

PVC, Sudhakar Plastics, Nuchem Plastics.

Electronic

Industries

Videocon, Narmada Electronics, Gujarat Mulco Electronics.

2.3.2 Export Offer

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Travancore Titanium Products Limited, an ISO 9001:2000 Company is a

Public Sector Undertaking under the administrative control of Government of Kerala,

India engaged in the manufacture and marketing of different grades of Titanium

Dioxide pigments. As part of business development activities, the Company proposes

to earmark around 300MTs, of Anatase grade and 200Mts of untreated Rutile grade

(RD 01) both branded as AJANTOX every month for exports on FOB Kochi, India

basis.

2.3.4 Future plans

With a view to improving efficiency, profitability, competitiveness, and to

maintain market leadership, TTP has proposals to expand its capacity to 27000 tonnes

per year, modernise and diversify in stages to produce both Anatase and Rutile grades

of Titanium Dioxide pigment. Modernisation and revamping would be carried out

with minimum interruption to the present production and the new plans to this

connection will be launched during the current year .The total estimated cost of the

project is Rs.412 crores.

A new project on the pollution control is also on progress to reduce the

current pollution problems caused by the waste produced from the company in the

form of liquid into the sea and gas into the atmosphere. This project is supposed to

reduce the various problems arousing in the nearby villages of the company.

2.4 ORGANIZATIONAL STRUCTURE

The managing Director of Travancore Titanium Products Ltd. The overall

administrative powers rest in the hands of MD. The Managing Director is an elected

member from the Board of Directors. He is appointed for a period of three years.

Under the managing director come the executive director and general manager. The

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long term planning of the company is done by the M.D. along with the Board of

Directors. Under the control at the general manager comes the production, Research

and Development, project, Engineering and Commercial Department.

Working Hours

Three shifts

I. 6 am to 2 pm

II. 2 pm to 10 pm

III. 10 pm to 6 am

General shift

8 am to 4 pm

Office time

9 am to 5 pm

Board of directors of TTP Ltd.

1. K. S. Srinivas IAS - Chairman

2. V. Muraleedharan. Nair - Managing Director

3. P.M. Shihabudeen - Executive Director

4. Dr. K. Gopakumar - Director

5. Adv. C. K. Karunakaran - Director

Executive work force of TTPL

The grand total is nearly 823.

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Chart no.2.1 Organizational structure

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Departmental Introduction:

Departments are formed when there is efficient and effective grouping of jobs

in to meaningful work units to coordinate numerous jobs to gain the organizational

objectives. This creates flexibility, adaptability, and unity of action within the firm.

The various departments in TTP are as follows:

Production department

Finance department

Marketing department

Commercial department

Materials department

Human Resources department

Training department

Engineering department

Legal department

Safety department

Medical department

Project department

Research and Development department

Security and Vigilance department

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3.1 PRODUCTION DEPARTMENT

The main product of Travancore Titanium Products Ltd is Titanium Dioxide

pigment. So considering the production, the production department becomes the vital

department in TTP Ltd.

The primary objective of TTP is to produce pigment grade Titanium

dioxide as per the capacity utilization target approved by the Management

maintaining optimum quantity standards of both Anatase and Rutile Grades. The total

production capacity of the plant is 46tones/day. The production department has co-

ordination with all other departments. Chief Production Manager heads the

department. There are four sections in production department namely:

Titanium Dioxide Section,

Sulphuric Acid Plant (SAP),

Managerial Information System (MIS), and

Raw Materials and Packing Section (RM &PS)

Each of these sections is headed by respective Production Managers. By the MIS,

the department makes the co-ordination with other departments easier. The Titanium

Dioxide Section has two ends, Black End and White End each headed by Deputy

Production Managers. The Production department is directly responsible for

maintaining optimum quantity standards of both Anatase and Rutile grades. Child

Production Manager is responsible for achieving this objective of TTP by integrating

directing and controlling the work of Titanium dioxide, production of sulphuric Acid

etc. Sulphuric Acid is also another product for which the raw material Sulphur is

being imported from Chile and Argentina.

Structure of Production Department

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Chart no.3.1 Structure of Production Department

3.1.1 The production department of TTP has many important functions, which

are as follows:

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Chief Production Manager

Production Manager TiO2 Plant

Production Manager Sulphuric Acid Plant

Production Manager Raw Materials

Production Manager Plant Monitoring

Deputy Production Manager TiO2

Deputy Production Manager Sulphuric Acid Plant

Deputy Production Manager Raw Materials

Deputy Production Manager Plant Monitoring

Plant Managers

Assistant Plant Managers

Foremen

Charge Heads

Operators

Supervisors

Work Assistants


Carryout investigations and guide management on long term measures

towards achievements of the goals of expansion in the areas of production and

quality.

To prepare detailed raw material plans and ensure the incoming quality

standards, their proper usage etc.

Constantly evaluating alternate source of raw materials, direct trails of the

same and to help the management to firm up the sources.

Integrate, direct and control efforts of production of Sulphuric Acid pigments,

dispatch raw materials etc. resulting in fulfillment of planned targets for

production and provide overall supervision of Titanium dioxide production.

Receiving of raw materials and packaging of final products.

Integrating the department itself with Research and Development department

for identifying solutions to long-term problems.

To prepare a detailed production plan in consultation with General Manager

(works) and this must be consistent with company’s production objectives.

Integrate production efforts with maintenance to ensure implementation of

production and maintenance schedules and to avoid breakdowns by helping

maintenance under take jobs on time basic etc.

3.1.2 Manufacturing process of Titanium Dioxide

TTP’s production process is aimed at the separation of Titanium dioxide from

illmenite through SULPHATE PROCESS.

Ilmenite, a mixed oxide of titanium, ferrous iron, ferric iron is grounded in ball mills

to fine powder and reacted with sulphuric acid in specially designed digestors.

Digestors are reinforced concrete tanks lined with lead and acid resistant bricks. The

heat of dilution of the acid initiates highly exothermic reaction and a porous cake is

obtained as product. This is dissolved in dilute sulphuric acid and the titanium goes

into solution as titanium oxysulphate. The solution then goes through a reduction

phase using scrap iron, when the ferric iron gets completely reduced into the ferrous

state. The reduced crude liquor is closed with settling agents and sent through large

settling tanks to remove the sludge consisting mainly of unreacted ilmenite and silica.

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The clear overflow from the settler is concentrated to a specified extent in order to

increase TiO₂ content from 150 gpl to 200 gpl and then charged into precipitation

tanks. On boiling by injecting steam, the titanium content gets precipitated as

hydrated titanium.

It is filtered over drum type rotary vacuum filters to increase TiO₂ content in pulp.

Any ferric iron still present is reduced to washable ferrous form by leaching the pulp

with diluted sulphuric acid and aluminium powder. It is washed further and then

treated with small quantities of potassium sulphate solution and mono ammonium

phosphate to develop the pigmentary properties. The treated pulp is dewatered to 40%

solids and the dewatered pulp is sent to calcinations unit through screw conveyers and

this pulp is dried completely in the calciner. Then the hydrated titanium dioxide is

decomposed to titanium dioxide and sulphuric acid decomposes and crystalline

properties get fully developed. The hot product from the calciner discharge is fed into

the cooler. The cooled is discharged to the screw conveyer and then the belt conveyer

and the product in the pellet form is conveyed to the pulverizer. Then using pendulum

mills, the granular product is pulverized to very fine particles of average size of 0.35

microns and packed in 25 kg HDPE bags and kept for dispatch. The product is

classified as Rayon Grade (RG), ISI Grade, General Purpose Grade (GP) according to

the quality.

Manufacturing process of Titanium Dioxide

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Mill Section


Chart no.3.2 manufacturing of titanium dioxide

3.2 FINANCE DEPARTMENT

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Digesters

Packing

Milling of Pigment

Calciner

De-watering Filter

Treatment

Post Leach Filter

Leaching

Pre-leaching Filters

Post Precipitation Filters

Precipitation

Concentration

Settlers


Finance is the life blood of the business. So in every business

organization the most important department is finance department. Without this

department no organization can work smoothly.

The finance department is responsible for proper planning and controlling of

financial resources. The department is headed by Finance Advisor. Finance controller

manages and control assets and liabilities of the company. His duties include

providing information to formulate accounting and costing policies, preparation of

financial reports, direction of internal auditing, budgeting, taxes etc.

Structure of Finance Department

Chart no.3.3 Structure of Finance Department

3.2.1 Objectives of Finance Department

To prepare corporate plans, annual plans and budgets.

To control cost, financial planning and ensuring uniform and correct

observance of financial disciplines of the company.

To monitor the progress of budget achievements.

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Finance Advisor

Finance Manager

Deputy Finance Manager

Assistant Finance Manager

Section Officers


To provide accounting service to all levels and ensuring updating of

systems procedures for the same.

To advise management on fund utilization and its implementation.

Setting of all investment proposals, certain new assets, new posts etc. from

the point of financial feasibility.

To evolve an audit manual.

3.2.2 Functions of Finance Department

To complete all budget work.

Assist all departments in providing financial administration of all

transactions.

To make proper entries in books of accounts and extract reports like Trial

Balance, Profit and Loss A/c, Balance Sheet on a time bound basis.To

collect all sums due to the company.

To make timely payments to creditors, suppliers, contractors, employees,

Government statutory bodies, service providers etc.

Budget preparation, computerization and finalization of annual budgets,

providing information regarding budget provision as and when required.

To prepare MIS as required by management

To assist all types of audit work.

To file proper returns in time.

To manage cash properly to maintain proper liquidity.

Timely dispersant of salary/wages to employees as per agreement.

TTP conducts four audits namely, Internal Audit, Statutory Audit as

per companies act, Accountant General Audit and Inspection Audit.

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3.2.3 Bankers of TTP Ltd

State Bank of India (SBI)

Federal Bank

ICICI Bank

3.2.4 The Department Sections

1. Bills Section:

This section includes payment like (Statutory) K.S.E.B, Purchase,

R.M, except salary of employees. Receipt cum Inspection Report (RCIR) and

invoice is received by Bills section. This is scrutinized to consider the terms

and conditions, as to whether there is any damage, oversupply of goods or

change in quantity and quality. All these details are recorded in the tally

records. For payment of purchases, purchase Bill is used. For electricity, Wa-

ter payment General Journal Voucher is used. The bill section also handles

Medical reimbursement for employees.

2. Salaries and wages section:

The salary section has following duties, such as calculation of salary,

wages, Income tax, P.F etc. Basic Pay, D.A. L.P, Overtime, Individual

attendance, bonus (for workers) shift allowance, HRA, conveyance allowance

(RLT), special allowance, Holiday Pay, Canteen Loans, advances like

Festival advance , Thrift, TLSS,TRC, Benevolent fund, Bonus etc at the times

on the pay slip.

3.Cash section:

Cash section is in charge of preparing cheques on receipt of vouchers,

on receipt from bank and they maintain a Petty Cash Book for entering

expense including during business hours, which includes monthly salary and

incentive payments and other payments.

4.Stores accounts section:

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Proper maintenance of store accounts and proper balancing and

recording of each and every transaction is done.

5.Loan section:

Housing loans has been arranged through HDFC at an interest rate of

13% of which 6% is provided by the company for the workers. Vehicle loans

are also allowed to the employees through this section.

6.Computer cell section:

The computer cell in TTPL started functioning since 1994. Today

almost all the departments of the company are computerized. Various sections

of the company are connected through Local Area Network (LAN).

7.Time Office section:

Time Office is for recording the attendance of the workers. This section

is under the authority of Finance Controller. The manual card punching is the

facilities provided in time office. The electronic card punching system is used

in office building to mark the attendance of the entering employees.

Simultaneously the attendance registers are kept in each department.

Significant Accounting Policies

Every organization has its own accounting policies. TTP has also has its own

accounting policies. They are as follows:

1. Fixed Assets

Fixed Assets are started at cost of acquisition or construction less depreciation. All

costs relating to the acquisition and installation of fixed assets are capitalized. Assets

and liability are consistently being recorded at historical costs to the company and

therefore they are not adjusted to reflect the change in value in the purchasing power

of money.

2. Investment

All investment is valued at cost.

3. Inventories

26


Raw materials, materials in process and stores and spares are valued at the

cost on weighted average method.

Finished goods – Titanium dioxide is valued at cost or net realizable value

whichever is lower. Excise duty which is payable at the time of removal of

goods is not included in the valuation of finished goods.

Goods in transit are valued at cost.

4. Sales

Sales are exclusive for excise duty and sales tax.

5. Depreciation

Depreciation on fixed assets has been provided as per the rates prescribed in

schedules XIV of the company’s Act of 1956. Under written down value method

depreciation on additions and deletions of fixed assets is calculated.

6. Retirement Benefits

Gratuity liability is provided based on the company rules prevailing from time to time.

The gratuity fund created to the company has been approved by the income tax

authorities. The net asset enables the fund to fully discharge the company’s obligation

in respect of gratuity, payment to the employees etc. The liability to pay leave

encashment accrues only when the employees can encash unveiled leave during their

period of service till the employee exercise his rights. Hence it is not quantifiable and

is accounted on cash basis.

7. Scraps

Accounting of scrap is done at the time of sale.

8. Salary

The employees get their salary/wages on the last, but one day before of each

month. Salary/wages is given on monthly basis. It is paid through bank/cash. Before

the payment of salary every employee will receive his pay slip.

9. Allowance

Some allowances are paid to the employees to compensate without changing

the basic pay structure. DA is paid to cover the increased cost of living. When

housing accommodation is not provided, house rent allowance on suitable BP

27


structure will be paid. In TTP there are different pattern of DA and HRA. They are

applicable to each employee in the organisation. House Rent Allowance is given to

employees and it is provided as 10% of Basic Pay, today.

10. Accounting policies

The financial statements are prepared under the historical cost convention on

accrual basis and in accordance with the mandatory accounting standards issued by

the ICA and relevant provisions of the Companies Act, 1956.

3.3 MARKETING DEPARTMENT

Marketing Department was started on 14-12-02. Earlier there was no

marketing department in TTPL. The Marketing Department of Titanium mainly

concentrates on sale of final products. The Titanium Managing Committee (TMC)

decides the sales for the year. After fixing the sales target by TMC, it comes to the

marketing department, then it fixes price of the product.

28


There are two wings in the marketing department namely, Domestic wing –

which deals with domestic sales and Export wing – which deals with export sales.

Structure of Marketing Department

Chart no.3.4 Structure of Marketing Department

3.3.1 Department level quality objectives

“To continual improvement of customer oriented services to meet customer’s

requirements.”

1. Domestic wing

To achieve customer satisfaction through timely execution of orders and to

maintain harmonious customer relationship.

29

Chief Marketing Manager

Clerical Staff

Assistant Marketing Managers

Deputy Marketing Manager

Section Officers


2. Export wing

To achieve customer satisfaction through timely execution of export orders

and to maintain quality standards in delivery of our product.

3.3.2 Objectives of Marketing Department.

To select and appoint stockiest and other customers for direct sales.

Invoicing and maintenance of customer accounts , follow up and

management of receivables etc.

Order evaluation and acceptance, maintenance of order registers,

priority booking registers, dispatch registers.

To fix price, fixation of sales commission and overall sales policy

including market budget.

.Export management.

Delivery and logistics management. Export management.

3.3.3 Customers

Presently company has 33 authorized stockiest. These stockiest are nominated

by company. A general agreement is executed between company and the stockiest. In

addition to these stockiest, TTP has many direct customers. These include reputed

organizations like Asian Paints, Berger Paints, Godrej, Bata etc. The sector wise

classification of customers of titanium products are Paint, Leather, Paper, Plastic,

Printing Ink, Soap, Cosmetics, Fabrics, Rubber, Ceramic, Artificial fibers,

Pharmaceutical preparation, Textiles, Electronic industries, Ink etc.,. In TTP a

Customer Satisfaction Survey is conducted yearly

3.3.4 Sales activities - Procedure (Domestic)

30


Orders are received by post, fax, e-mail etc. Along with this order, customer

has to send cheques, pay in slip copy (amount credited to TTPL A/c). The

customer has to send original cheque. Also in case of depositing amount, the

marketing department will ensure that the amount is credited in TTPL’s ICICI,

Trivandrum account. Usually one month credit is given to stockiest. So cheques will

be post-dated. After verifying the details regarding payment, customer’s demand for

pigment grade etc., indent (work order) is prepared. Presently four copies are printed

and software is available for indent preparation. The indent is reviewed by Assistant

Manager. The customer’s order may contain details regarding transporter. So in the

mean time department has to contact transporter. The prepared indents are sent to

Technical Service Lab (TSL) for batch allotment and the details regarding allotment is

sent to packing section. One copy of indent is held in TS Lab and one copy in Packing

Section. After getting authorized signature from Packing Section, allotted batch is

loaded in lorry/truck. Details regarding Lorry Receipt (LR) and vehicle number are

noted and invoice is prepared. By knowing the indent number, invoice can be easily

generated and details regarding LR and vehicle number are entered. Eight copies of

invoices are printed out. Original invoice is sent by post to buyer. Duplicate copy of

the invoice, LR and dispatch notes (3 copies) given to transporter. Dispatch note

includes details regarding number of bags, quantity etc.

In case of domestic sales within Kerala, the sales tax charged is Value Added

Tax (VAT). But in case of domestic sales outside Kerala, the sales tax charged is

Central Sales Tax (CST) @ 2%.

3.3.5 Sales activities – (Exporting)

Presently TTP’s products are exported to countries like USA, UAE, Malaysia,

Indonesia, China, Singapore etc. Both Anatase grade and Rutile grade are exported.

Web based interactions are done with customers. A sample if required is sent to the

customers by cargo. After discussions with the customers regarding price, terms of

export like FOB (Free Own Board), CIF (Cost intrense Freight), orders are placed by

31


customers through fax or email specializing terms. As per the financial capability of

customers, bank LOC (Letter Of Credit) is opened. All conditions are stated in LOC.

With the help of Central Excise Department and in presence of them, the product is

dispatched in container. Products are exported through an agent at Kochi. Letter of

Undertaking (LOU) is the document (bond) used to export the products. This

document is renewed yearly. DEPB (Duty Entitlement Pass Book) license, an

incentive license is owned by TTP and with the help of which company get incentives

from Foreign Trade. There is no export duty. Usually, the mode of transport used for

exporting the product is sea transport. Export is usually made according to the

requirements of the customers.

3.3.6 Business promotion activities

Web-based and telephonic interactions are done with customers.

Advertisements (mainly magazine and newspapers and internet), trade commissions,

discounts, introduction of company and company products to potential customers

through internet, telephones, mails etc. are all business promotion activities.

Prices of Titanium Dioxide (various grades) and Potassium Titanate and Sodium

Titanate per Metric Tonne for Inter State Sales

Table no. 3.1 price list of TTP

32


Particular

s

Anatase

ISI

Grade

(Rs)

Anatase

GR PG

(Rs)

Anatas

e

PG

(Rs)

Rutile

Grade

RD-01

(Rs)

Rutile

PG

(Rs)

Rutile

GP

(Rs)

Anatas

e ISI

Grade

(Rs)

Pot.Tita

nate/

Sod.Tita

nate

(Rs)

Basic

price

160000.

00

155000.

00

163000

.00

167000

.00

170000

.00

147000

.00

170000

.00

170000.

00

BED @

12%

19200.0

0

18600.0

0

19560.

00

20040.

00

20400.

00

17640.

00

20400.

00

20400.0

0

Education

Cess @

2%

384.00 372.00 391.20 400.80 408.00 352.80 408.00 408.00

S & H

Edn. Cess

1%

192.00 186.00 195.60 200.40 204.00 176.40 204.00 204.00

CST @

2%

against C

Form

3595.52 3483.16 3662.9

4

3752.8

2

3820.2

4

3303.3

8

3820.2

4

3820.24

Invoice

Price

177641.

16

183371.

52

186809

.74

191394

.02

194832

.24

168472

.58

194832

.24

194832.

24

Source:-Price list of TTP from 13th August 2012

3.4 COMMERCIAL DEPARTMENT

The commercial department of Travancore Titanium Products Ltd. involves in

purchase activities and contracts. The work of this department is to sub serve all other

33


activities of the company, which results in smooth flow of material, inputs and

services required.

Structure of Commercial Department

Chart no.3.5 Structure of Commercial Department

3.4.1 Main objectives of the department include:

To serve as an information centre on the materials knowledge relating

to price, source of supply, mode of delivery etc.

The quantity of materials purchased should be tested and certified by a

competent officer from the department/stores.

To develop good supplier relationship as this will ensure the best terms

of supply of materials.

The financial and legal interest of the organisation related to purchase

activities are safeguarded and the timely supply is guaranteed.

34

Chief Commercial Manager

Deputy Commercial Manager

Assistant Commercial Manager

Section Officer

Clerks

Typist


3.4.2 Purchase Section

Purchasing is the function of procuring goods and services from external sources

to the organisation. In other words, purchasing is the procuring of materials, machine

tools and services required for equipments, maintenance and the operation of a

manufacturing plant. In TTPL, purchase department involves in purchase of raw

materials like illmenite, sulphur, scrap iron, furnace oil and also purchase of tools and

equipments like fabrication valves, pumps, canteen equipments, safety items,

electrical goods, gears, lubricants, lab items, stationary items etc

3.5 MATERIALS DEPARTMENT

35

Materials Manager

Deputy Materials Manager

Assistant Materials Manager


Chart no.3.6 Structure of Material Department

In TTP Ltd., even though the Materials section comes under the commercial

department, it is functioning independently.

In this company the investment in current assets constitutes a lion portion.

Therefore a separate stores department is maintained. The location and layout of the

department is carefully planned so that transportation charge can be minimized.

3.5.1 Functions of Material Department

A. Issues of materials: The main function of this section is to issue the materials as

per the issue voucher. This issue is also recorded in Bin Card and Computer.

36

Section officer- Indent (holding)

Section officer- Receipt section

Section officer- Inventory control

Section officer- Issue

Lascars (Material Handlers)

Assistant Store Keepers

Store Keepers


B. Dispatch: As per the delivery orders received from the commercial department

the customers of the various products sent their transporting vehicles

through various transporters.. The invoice declaration and gate pass is prepared. The

materials produced daily is taken into stock and maintained in the register.

C. Inspection: The receipt vouchers are checked for the item and the quantity and the

concerned intend of the material is asked to inspect and certify. The inspector works

in accordance to the concerned intends while receipt of goods.

D. Inward Materials: All the stores materials coming to the stores as per the

different purchase orders made by the purchase section are received.The quantity and

quality a rechecked and a receipt voucher is prepared. After the inspection of

materials, quantify is recorded in the BinCard and Kardex as per the location and code

of each material.

E. Raw Materials: The raw materials received from various sources i.e.,

departmental and contractor are recorded as per the weighbridge bills.

F. Inventory Control and Disposal: The material section should also concerned with

the inventory control. They should inform to the concerned departments when the

reorder level is reached.

3.6 HUMAN RESOURCES DEPARTMENT

Human resource is the main asset of any organisation. Therefore managing the

human resources are the most important functions of any organisation. So it is

37


essential for any organization to fix a separate department for the management of

human resources. The department is responsible for personnel functions of the

company to result in timely action for maintaining smooth industrial relations, leading

to employee’s morale and productivity.

Structure of Human Resource Department

Chart no.3.7 Human Resource Department

3.6.1 Employee strength of the company:

Presently there are nearly 823 employees. The employees fall under two

categories:

1. Managerial cadre

2. Workers cadre

38

Chief Manager

Manager of the department

Deputy Managers

Assistant Managers

Section Officer


Managerial cadre is having superior service rules and the workers cadre having sub-

ordinate service rules.

3.6.2 Objectives of HR department

To provide leadership for management of industrial relations and employee’s welfare

functions of the company.

Administering the different committees for employee’s participation.

For evolving system of prompt attention and redressal of employee’s

grievance and prevention of the same.

For evolving system of prompt attention and redressal of employee’s

grievance and prevention of the same.Administering the different

committees for employee’s participation.

Implementing the standing orders pertaining in the company.

To provide basics for corporate strategies and policies for maintenance

of industrial peace and for workers motivation.

3.6.3 Functions of HR Department

1. Man power planning and identification

One of the major functions of this department is the planning of the required

manpower and identification of the vacancies present in the company. The

number of employees required for the company was planned by Human

resource department.

2. Recruitment

Another important function of personal department is the recruitment of the

right persons in the right place at right time. It is the first time process by which

employment is provided to the adequate manpower resources. It is the positive

39


process of searching for prospective employees and circulating them to apply for the

jobs.

Mainly there are 2 modes of recruitment

1. Direct Recruitment

2. Through Public Service Commission

For the appointment of Managerial cadre Direct Recruitment mode is used.

For the recruitment of process operator, work assistant, Direct Recruitment method is

used. Clerks and typists are recruited through PSC. For Direct Recruitment of

workers, 30% reserved for locals.

For Direct Recruitment invitation will be given to the professional employment

exchange and advertisement will be given in leading newspapers. Based on the

written test & interview, selection is made.

For conducting interviews there will be a selection committee consists of MD,

Company Secretary, Chief Manager (Human Resource), Govt. Nominee and

representative of concerned department.

In addition to above 2 modes of recruitment, the following recruitments are made:

Sports Quota: Titanium encourages sports activities in the state by recruiting

young promising players into the company sports team. These include

Football, Volleyball players. The recruitment is based on qualification and

sport level performance.

Dying in Harness: An employee’s dependant is provided employment in the

company if he dies in service.

Special Recruitment: For SC/ST through PSC: 8% SC and 2% ST.

Probationer

40


Newly appointed employees will be on probation. For Managerial cadre, it is

one year. For subordinate class, it is 6 months. There will be police verification for

newly appointed employee. During probation overall performance, attendance,

punctuality, loss of pay, any disciplinary action taken etc will be taken into account.

During probation period, the employee will not be eligible for annual leave.

Appointment by transfer

This is a type of internal recruitment. In case there is some vacancy and there

is no eligible person to be promoted to that post, a person of another department

having the required eligibility may apply and be appointed to the vacant post by

internal transfers

Dying-in-harness scheme

The company appoints several persons by this scheme. If any employee dies

before retirement, then the company offers job for his children or any member of

family according to their qualification.

3. Maintaining Service Records

The company’s human resource department is keeping service record of each

employees for further reference of promotion and transfer of the existing employees

from the light of frequent performance evaluation.

4. Promotion

Promotion is concerned with rewarding the capable employees by putting

them in highest positions, with more responsibility and higher pay. In case of

promotion one year probation period will be provided. Usually promotion is based on

Graduation Rank list. In addition to this performance rating, attendance, qualification

is also considered. Advancement within an organisation is ordinarily labeled as

promotion, which involves a change from one job to another that is better in terms of

status and responsibility. Change to higher job is accompanied by increases in pay and

41


privileges. For every chance for promotion, three persons are considered. Basis for

promotion in TTP are attendance service, performance, seniority, test/interview etc.

5. Performance appraisal

Performance appraisal is a systematic evaluation of present potential

capabilities of personnel by their superiors. It is the process of estimating or judging

value status of a person. In TTPL separate appraisal is done for subordinate staff and

management cadre. In performance appraisal capacity, job knowledge, initiative, job

attitude, human relations, personnel character, attendance, punctuality, integrity etc.

are measured. It is conducted every six months.

The main objectives of performance appraisal are:

To provide systematic judgement to back up salary increments, transfers etc.

Means of telling the employees how he is doing or performing his work and

suggesting the needed changes in his behavior.

It is used as a base for coaching and counseling the individual by his superior.

6. Labor welfare

The very existence as well as the progress of a factory is largely dependent on

the mental satisfaction of its workforce. Aiming the satisfaction of the workforce,

labor welfare measures in various forms are introduced in Travancore Titanium

Products. It provides a vast number of welfare amenities to its employees for the

promotion of better labor management relationship.

7. Maintaining records – regarding leave

TTPL’s HR department is keeping the records of leave of the employee for the

payment of remuneration of each employee in the organisation.

8. Industrial Relation

42


In TTP, Trade Unions are recognized through a referendum. There were 9

Trade Unions in TTP, but in a referendum made by the company in 1996, all other

unions except Titanium products Labor Union and Titanium General Laborers Union

were disqualified. Therefore in 1998, all other unions merged into one to form a new

trade union called Titanium Employees Co-ordination Council. TTP maintains an

excellent relationship with its employees and their Trade Unions. TTP has 3

recognized trade unions. They are:

1. Titanium Products Labor Union (TPLU) of INTUC

2. Titanium Government Labor Union (TGLU) of CITU

3. Titanium Employee Co-ordination Council (TECC) of AITUC

For recognition each union must have 20% or more support from among the

employees.

They are meant for carrying out functions like:

To secure fair wages for workers.

To safeguard the jobs of the employee and to improve the conditions of the

organisation.

To improve apport unities for promotion and transfer.

To improve working and living conditions of employees.

9. Remuneration

TTP gave fair remuneration to its employees in order to increase their morale

thus by increasing productivity. There are two types of pay scale present. One is for

subordinate service and other for officer service. HR department calculated the

remuneration payable to each employee from the details of their attendance and the

payroll sheet transferred to finance department.

Retirement

43


Retirement means the situation when the employee being terminated service

on reaching a fixed age. The age of retirement of TTP is 58 yrs. At the time of

retirement the employee will be provided with Provident Fund, Gratuity etc.

Workers Participation

The further enhancement of industrial relation is done by encouraging workers

and increasing worker’s participation in management. For this purpose TTP has

formed various committees like Works Committee, Canteen Advisory Committee,

Departmental Promotion Committee, Medical Committee, Benevolent Fund

Committee, Safety Committee etc. In the works committee the members are selected

by representatives of workers and management. They meet once in a month.

3.7 TRAINING DEPARTMENT

44


Training is an inevitable part of an organisation for ensuring the workers and

officers’ commitment towards their respective works. Training is provided to the

workers for increasing their skill and ability to perform specialized jobs.

Structure of Training Department

Chart no.3.8 Structure of Training Department

3.7.1 Objectives of Training department

Proper induction of new recruits into their job.

To educate the employees regarding the procedure and responsibilities

of their job.

To faster the career development

To bridge the communication gap between the workers and the

management.

To develops skills for a particular job.

To motivate worker

45

Chief Manager (HRD & AMN)

Staff

Training Officer

Assistant Manager (Training)


Every training programme has a well-defined specific objective. The different stages

in training are as follows.

1. Induction Programme

Induction programme is training with specific objectives. It aims at

creating awareness to the new comers about the organization and its products,

different sections, rules and regulations they have to follow etc.

2. Orientation

This is the second stage in training programme. After

induction programme is carried out, feedback is obtained after three months.

This is orientation.

The training department of TTP mainly offers 4 main Training Programmes. They

are:

1. Induction Programmes or Vestibule Training.

This programme is designed to give them a general view of what the

enterprises does, how it is organized, what benefits it offers and what its general rules

and regulations are.

2. In-House Training Programme.

This programme is meant for all levels of employees and worked,

aimed at creating an awareness of the knowledge of fundamentals. It is mainly for

improving employee's attitude, motivation, co-ordination etc. under this programme

and industrial tour was conducted which was for 8 days.

3. Outside-Training.

This programme is meant for particular category of employees or

workers, conducted by the Training Department under the authority of specialized

expert from outside agency. This is knowledge-based training. In this programme, an

46


effort is made to expose participants to concepts, theories, basis principles, pure and

applied knowledge.

4. Unit Level Class

This programme is come under worker's education scheme. In this

programme, education is given to the workers in order to create social awareness in

turn. Education is given to workers in areas like their working environment,

democracy etc.

47


3.8 ENGINEERING DEPARTMENT

Structure of Engineering Department

Chart no.3.9 Structure of Engineering Department

48

Chief Engineer

Deputy Chief Engineer -Civil

Deputy Chief Engineer - Mechanical

Deputy Chief Engineer - Electrical

Deputy Chief Engineer - Instrumentation

Executive Engineer - Civil

Executive Engineer - Mechanical

Executive Engineer - Electrical

Executive Engineer - Instrumentation

Assistant Executive Engineer - Civil

Assistant Executive Engineer - Mechanical

Assistant Executive Engineer - Electrical Assistant

Executive Engineer - Instrumentation

Assistant Engineers

Work Assistants

Operators

Charge Heads

Supervisors


One of the major departments in TTP is the Engineering Department, which is

headed by Chief Engineer. The Engineering Department is responsible for the

installation of all factory structures, Plants, equipments and their proper maintenance

and upkeep as well as optimum production of titanium dioxide. The Department has

four sections each headed by Deputy Chief Engineers under the authority of Chief

Engineer. The Chief Engineer co-ordinate the overall activities of all sections. TTP

has a well efficient Engineering Department

The Engineering department performs various functions very smoothly. It has co-

ordination will other departments also.

3.8.1 The Objectives of the Engineering Department includes.

Preparation of plants.

Preparation of technical specifications and assist the Commercial

Department in technical scrutiny of offers and arranging purchase and

stock of materials.

To advice the Management to take decision on all Engineering matters.

To arrange planning of engineering equipments and stores materials

required for the factory.

Ensuring proper upkeep maintenance and installation of estate.

To keep liaison with Government Departments like KSEB. Electrical

Inspectorate. Factories and Boilers Inspectorate etc. for ensuring

maximum co-operation and assistance from these departments for

maintaining all engineering related activities.

Planning, arranging and initiating preventive maintenance programmers

and repair of equipments and installations in the factory including

vehicles.

Preserve the working life of plants.

49


The Engineering Department in TTP has four major subdivisions namely

Mechanical, Electrical, Instrumentation and Civil Sections. A brief description about

each section is as follows.

3.8.2 MECHANICAL SECTION

Another section of Engineering Department is the Mechanical

section, which is headed by three Deputy Chief Engineers. This section includes areas

like Workshop and Plant Technical Services, Titanium dioxide plant and Vehicles,

SAP, Boiler & Utilities. Functions of mechanical section includes maintenance of

equipments, machines etc. Plant Technical Service (PTS) carried out statutory work

of company.

Repair

Maintenance of Mechanical devices and equipments.

Maintenance of spare parts.

Installations and running of the related devices.

3.8.3 ELECTRICAL SECTION

One of the major sections of the Engineering Department is

Electrical Section-which is headed by Deputy Chief Engineer. This section under-

takes the activities of maintaining sub-stations of 60/11 KV and 11/440KV power

demand of the factory. The main function of this department is the electrical

maintenance of plant and organization. The maintenance of different types of

electrical equipments like switchgears, motor control center, power control center etc.

The areas like white section and black section of plant, Generator substations and

Sulphuric Acid Plant comes under this section.The electrical section has well

equipped workshop, which undertakes electrical works of the company. The major

functions include.

Maintenance work of electrical equipments

Inspection of electrical items.

Undertaking electricity related works.

50


3.8.4 INSTRUMENTATION SECTION

Instrumentation department enhances maintenance of instruments,

modification of works etc. The areas like titanium dioxide plant, shift, acid plant, lab

instruments, weigh bridge, Attendance Management System are also come under this

section. The section enhances Titanium Plant service maintenance as well as that of

acid plant. The function of this section includes process parameters are done by this

section. Daily charts and monthly charges are present. This section conducts service

contracts for checking weighing bridge. This section also deals with punching system

repair. . The TTP has electronic punching machines, which was filled by KELTORN.

Attendance Management system is also another function of this section.

3.8.5 CIVIL SECTION

The civil section is one of the major sections of Engineering

department. There are 16 labours present in the section, which includes officers. They

mainly undertake Plant maintenance work. The section has co-ordination with stores

and Commercial Department. The main activity of civil section is construction and

extension of building and also the maintenance of carpentry works, plumbing works

etc. There is a separate drawing branch for drawing the outline of new projects in

Civil Section.

3.9 LEGAL DEPARTMENT

51


Legal department is to render legal opinion / advice on matters referred from various

other departments of the company on subjects varying from recruitment and service to

matters related to contract and commercial transactions. The Chief Manager heads the

TTP’s legal department. This department is responsible for representing the company

in legal matters.

Structure of Legal Department

Chart no.3.10 Structure of Legal Department

3.9.1 Objectives of Legal department

Prevention and settlement of industrial dispute.

Represent the company in the Court of Law.

File cases against external parties.

3.9.2 Functions of Legal Department

The Department is to render Legal opinion/advice on matters referred from various

other Departments of the company on subjects varying from recruitment and service

matters to contract and commercial transactions.

I. Recruitment

52

Chief Manager

Assistant Manager

Clerical staff


To the various categories of posts in Managerial Cadre and Subordinate

Service, recruitments effected through PSC/Employment Exchange or by

direct notification, and under Dying-in-Harness scheme.

With regard to direct recruitment Legal opinion is often called for as to

qualifications/eligibility of the candidates or acceptability of applications.

In appointments under Dying-in-Harness scheme, producing of various

certificates evidencing Death of the employee, right of the claimant(s) for

Death-cum-Retirement benefits and qualifications/eligibility of the applicant

for the job, the post to which the candidate is to be appointed etc, may require

legal vetting and verification.

II. Service Matters

Service matters ranging from eligibility of the candidates for promotion to a

particular post, deciding the merit, up-gradation (in lieu of promotion),

increments/anomaly etc may call for legal advice/opinion.

III. Conduct of Cases

A dispute of difference between the parties in any of the above matters such

as recruitment/service matters, contract may lead to litigation at various

venues such as Industrial Tribunal/Labour Court, various Civil Courts, and

High Courts of Departmental authorities such as Sales Tax/Transport

Commissioner/Tribunals (Central Excise Commission/Collector (Appeals),

Central Excise & Gold Control Appellate Tribunal (CEGAT). In case of

purchase/contract disputes are also referred to Arbitration.

In these cases, the Standing Counsels at Ernakulam and Trivandrum appear in

Courts for the company. All the necessary information and documents

required in the cases for filling/presenting in Court have to be obtained from

the concerned Departments and transmitted to the Standing Counsels. Where

the Judgment/Award of the Court or Authority contains any direction to the

Company the Department has to pursue action for compliance with such

direction stipulated in the judicial pronouncements.

53


IV. Disciplinary Proceedings

Being an establishment employing above 1200 employees (Managerial and

Subordinate Service), naturally questions of discipline may come up most

often. Having got the certified Standing Order, and the misconducts well

define therein, any act affecting discipline cannot but be taken cognizance of.

Disciplinary proceedings start with issuance of chargesheet with details of the

alleged misconduct and calling for the delinquent’s explanation which is not

found satisfactory, domestic enquiry is ordered: this involves posting of the

Enquiry officer and Presenting Officer, culminating in the Enquiry Report of

the Enquiry officer and award of punishment, if found guilty, based on the

Enquiry Report.

At any of these stages legal opinion/advice may be sought so as to ensure that

the Management’s action is legally sound, as also to ensure that the delinquent

is accorded reasonable opportunity to present/defend his case and natural

justice meted out to him.

In addition to these duties with regard to disciplinary proceedings in general,

officers in the Department are posted as Enquiry/Presenting Officer in which

case they have to play the role of the judge or prosecutor respectively.

V. Commercial Transactions

In the course of business, the Company has to enter into agreements/contracts

with various suppliers, customers and contractors for supply of material,

servicing of equipment supplied, executing of contract works etc throughout

the country and even abroad at times.

Documents embodying these contracts have to be drafted/approved/vetted by

this Department.

In case of delay or default in supply or execution of work as per contract also,

this department shall have to intervene at various stages by way of issue of

show cause notice, termination of control, blacklisting of the party etc.

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VI. Financial Matters

Mainly the financial matters referred for legal opinion relate to levy of

charges such as Excise duty/MODVAT claims, Sales Tax etc., on material

purchased/sold by the company.

There being a bulk of statues in the country governing industry/labour in

addition to the ordinary enactments on civil matters, a legal issue may spring

up in anything related to the Company any time, warranting involvement of

Legal Department

.

3.10 SAFETY DEPARTMENT

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Safety can be defined as a positive, organized activity or program

based on knowledge of the reaction between man and his working

environment, which aids business enterprise by minimizing human and

economic and sociological losses caused by injuries, health impairment, fires,

explosions and other occupational accidents. Safety management is a statutory

requirement in any organisation and its objectives is to ensure the safety of the

factory premises and personnel.

TTP has a safety department in order to ensure the safety needs of its

employees. According to Factories Act, every company employing more than

five hundred workers should have a welfare and security officer. The safety

department which is handled by a safety manager is considered to be vigilant

in every aspect of production. Primary job of safety manager involves teaching

supervisors, assisting them in their responsibility for ensuring safety in

operation.

. Structure of Safety Department

Chart no.3.11 Structure of Safety Department

3.10.1 The main Objectives of the department include

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Safety & Environment Manager

Supervisor

Assistant Managers

Section officers


To give instructions to work force about safe working methods & conditions.

To detect and prevent work related accidents.

To control accidents and losses.

To advice and assist the factory management for fulfillment of its statutory

obligation.

Monitoring the potential health and safety problems and carrying safety

inspections.

The various personal Protective Equipments that the company provided for the

employees are.

Table no. 3.2 the various personal Protective Equipments

Helmet For head

Goggles For eyes

Mask For face

Respiratory Apparatus For Breathing

Gloves For Hand

Apron For Body

Sale Shoe For Foot

3.10.2 Functions of Safety Department

To provide the preventive action against accidents.

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To create Safety Awareness.

Safety Training.

To direct unsafe conditions and actions in the working premises and report it

to top management.

To control the losses and accidents that occurred within the company.

Give medical and other type of assistance in accidents.

To provide preventive action, which includes plant safety inspection, safety

audit, and periodic training program for accident prevention.

To create safety awareness among the employees.

To conduct investigation about the accidents that occurred.

To analysis the accidents occurred in a year and calculated

3.11 MEDICAL DEPARTMENT

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In TTP there is a Medical section. Even though it comes under the authority of

Human resource department, it is functioning independently for providing better

medical service to the employees.

The head of the section is a Medical Officer. Under him, there is one male

nurse and four nursing assistants. The working hour of this department is 24 hours

and 365 days in a year. The Medical Officer and male nurse were working on general

shift i.e. from 9 am to 5 pm. The ambulance and driver is present for 24 hrs service.

Doctors are appointed by the company. When an accident occurs within the

factory premises, first aid is provided and if found serious the victim is taken to the

nearby hospital. The employees working in areas hazardous to their health are

subjected to annual biotexological examination at Occupation Health Service Centre.

Periodical medical checkup for employees in canteen, led burning, packing shed, acid

plant and welding section are conducted. Ophthalmic checkup for the employees was

organized in collaboration with ophthalmic outpatient unit of General Hospital,

Thiruvananthapuram. Supplementary vitamin foods were being given to these

employees. The medical allowance given to the employees is 14% of the amount of

sum of basic pay and DA, which is paid once in 3 months.

Structure of Medical Department

Chart no.3.12 Structure of Medical Department

3.12 PROJECT DEPARTMENT

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Medical Officer

Male Nurse

Nursing Assistants

N


The company takes projects recently. So the importance of Project

Department gains its importance recently. This is a new department specially

created for carrying out the project works successfully. The project department

in TTP, which is headed by Chief Project Manager carry out the projects for

the company. They also dealt with plant modification and expansion. Under

the authority of Chief Project manager , three wings are present namely civil,

mechanical and project wing.

Structure of Project Department

Chart no.3.13 Structure of Project Department

The project department undertakes type of works like:

3.12.1 Plant Modification and Expansion

Plant modification and expansion is very important concerned with the

company. Company gives prime importance to the modification of the plant. Project

department is concerned with this duty.

3.12.2 New Projects

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Chief Project Manager

Assistant Project Manager

Clerical Staff


Company undertakes several new projects. Pollution is the main problem

faced by the company. So company needs a project for pollution controlling. So this

project department undertakes a new project of Effluent Treatment Plant worth

Rs.412 Crores for pollution controlling. In this project 3 plants are intended namely,

Acid recovery plant, Copperas recovery plant and Neutralization plant. The amount

estimated to complete the first phase of this project is 129 crores, out of which 82

crores were expended by the company.

3.13 RESEARCH AND DEVELOPMENT DEPARTMENT

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The company takes projects recently. So the importance of Project

Department gains its importance recently. This is a new department specially created

for carrying out the project works successfully. The project department in TTP, which

is headed by Chief Project Manager carry out the projects for the company. They also

dealt with plant modification and expansion. Under the authority of Chief Project

manager , three wings are present namely civil, mechanical and project wing

Research is an ongoing process. For the development of any organization,

research is a prime factor. So in any reputed organization, there is a special wing for

research and development. TTP also has a well-equipped and efficient R & D

department concerned with quality control and pollution monitoring, Technical

services, Research and pilot plant respectively. The department was concerned with

the research or study of new processes or techniques for the company. By the findings

of these departments, the company was able to find long-term solution to certain

problems of process and quality.

The R & D Manager is responsible for guiding, directing, initiating and

executing all the jobs in the department. The ISI analysis of the products and raw

materials also came under the department. Research and development activities are

concerned with raw material substitutions, usage norms, surface coating, development

of titanium based products, pollution control, effluent control advice on stage wise

inspection and follow-up of titanium dioxide production particularly Rutile grade.

TTP gave prior importance to the quality of product. Their product was well known

for its quality.

Structure of Research and Development Department

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Chart no.3.14 Structure of Research and Development Department

3.13.1 The main objectives of R & D department are:

Render in process, stage wise testing and trouble-shooting service acting as a

necessary adjunct to production.

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Chief Manager R & D

Manager R & D – Technical Service

Manager R & D – Process Control

Junior Chemists

Assistant Chemists

Assistant Managers R & D

Deputy Managers R & D

Chemists


Undertake development projects both for process and product improvement

and diversification to help General Manager and advice management on new

process, products and projects.

Identifying the changing needs of customers through regular interactions.

Maintaining quality at incoming in process and final product stages.

Implementing and maintaining a quality management system.

3.13.2 The department has also some functions like:

Studying the variance.

Finding the process parameters like electricity revelation per minute (rpm).

To improve the quality as well as quantity of products.

Monitoring the plant performance.

Monitoring the pollution.

Maintaining quality at all stages of products.

Providing service to customers.

Taking samples at various stages starting from raw material till the product.

Analyzing the samples, finding the variance in production.

3.13.3 Research & development Department Includes 5 Divisions Namely;

1. Research and pilot plant

The pilot plant produces special grade of Titanium dioxide, sodium titanate and

potassium titanate that are used in welding electrodes as flux.

2. Process Quality Control

It is responsible for analysis of raw material, finished products and samples from

different products process stages etc.

3. Technical services

It is responsible for providing service to customers. They analysis the final packed

product for ISI grading and allow the same for the customers looking in for specific

requirement and attends to customer’s queries and complaints.

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4. Pollution Monitoring

It carries out analysis of liquid effluent and stack emissions and reports the result to

the State pollution Control Board. The Research group is responsible for optimizing

products, quality and process specification, development of titanium based product on

a bench scale and further on a pilot plant scale.

5. Library

TTP has two Libraries, namely Technical Library and Titanium Recreation Club

Library (TRC library), which comes under the R& D department. Technical library

has books of all subjects, which is under management control. TRC library has daily

newspapers and magazines, which is under a committee Chairman is a Management

nominee. There are 7 members in the committee.

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3.14 SECURITY & VIGILANCE DEPARTMENT

The company’s security department is headed by Security Superintendent and

Vigilance officer. It is the responsibility of security department to protect employees,

materials, machineries, buildings and protect during fire, theft and other problems. As

the security is 24 hrs, in every shift, the security group is headed by head security

guard.

Structure of Security and vigilance Department

Chart no.3.15 Structure of Security and vigilance Department

Duties

To carry out standing orders properly.

To ensure that the rules and laws of the company are obeyed.

Functions

To protect the personnel and property of the organisation against theft and

pilferage.

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Security Superintendent

Security Officers

Assistant Security Officers

Head Security Guard

Security Guards


To check all incoming and outgoing goods and vehicles.

To assist the management in case of strikes and labor unrest.

To bring irregularities to the notice of the management and suggesting

remedial measures.

All the movements of the employees and outsiders through the main gate

shall be recorded in the relevant registers.

The main gate will be locked at all times and will open only to permit the

movement only under the scheduled timings or under authorized documents.

Should be very careful towards fire prevention and workmen is not allowed to

smoke inside the factory premises.

At the close of the working time, inspect the windows and ventilators and

ensure that all fans, lights, water taps, etc are switched off except the security

lights.

3.14.1 The points of security in Travancore Titanium Products Limited

1. Main gate

2. Inner gate

3. Work shop

4. Main office (Reception)

5. Time office

6. Power loading

7. Cash section(when needed)

8. General stores and Canteen area.

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4.1. SWOT ANALYSIS

TTP is a major company, which is a Public Sector undertaking under

Government of Kerala. The company is in the face of extension now. The TTP has

strength as well as weakness. It also has opportunity and threats.

Strength

TTP is a Public Sector Undertaking (PSU) under the Government of

Kerala.

Brand name and excellent reputation.

High quality of products.

Experienced work force.

Easy availability of raw materials.

Strong Safety department.

ISO 9001:2000 certification of TTPL.

Functioning with internal source of fund.

Loyal customers.

Lesser government restrictions compared to other industries.

Weakness

Excess staff

Production cost is high.

Price of the product is very high.

Lack of technological up gradation.

No proper management information system.

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Political interference in the day to day management.

Major policy decisions are taken by State Government and hence

delay in decision making.

There is high level of water and air pollution.

Strikes staged by local people against water pollution.

Opportunity

Scope for utilization of plant's production capacity

Maximum utilization of workforce efficiency.

Increasing demand of Titanium dioxide globally

Adopt new machineries and technologies

Maximum exploitation of export-market.

The company has a good opportunity to sell sulphuric acid.

Threat

Pollution problem

Threat from local competitors like Kilbun and Colmac.

Threat from importers like China and Malaysia.

Reduced price of competitors.

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4.2 PORTER’S FIVE FORCE MODEL

Michael .E. Porter’s five force model is used as the framework for analysis. The

five competitive forces-entries, threat of substitution, bargaining power of buyers,

bargaining power of suppliers and rivalry among current competition-reflects the fact

that competition in an industry goes well beyond the established players. Customer,

Suppliers, Substitutes and potential entrants are all competitors to firms in the

industry and may be more or less prominent depending on the particular

circumstances.

Chart no.4.1 Porter’s Five Force Model

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Industry Rivalry

Substitutes (Threat of

Substitutes)

Suppliers (Supplier Power)

Buyers

(Buyer Power)

Potential Entrants

(Threat of mobility)


1. Rivalry

The incumbent’s share in the total Indian TIO₂ market has drastically came

down from a position of monopolist. An industry with growth rate assumed to be 7 %

(based on GDP) is meaningful provided the demand/supply position is controlled by

indigenous players. But with liberalization, import duty cut made it cheaper to import

customized quality products. Of the four players in the industry, two large producers

are in the public sector and the other two are in the private sector. Indian import of

ANATASE grade TIO₂ during 96-97 is of the tune1881.897 tonns for a value of

Rs13.6 crores.

2. Threat of new entry

TiO₂ industry is capital intensive in nature. For justification a price of

Rs100000/tonne is required as return on investment. The process technology to

produce ANATASE grade TiO₂ (sulphate route) is not tightly controlled as that of

RUTILE grade TiO₂ (chloride route). An interesting feature of the domestic TiO₂

industry scenario is that a number of green field manufacturing plants have been

advertised but have not made headway beyond the conceptualization stage.

3. Substitution

TiO₂ introduced as a substitute to zinc oxide and lithopone in the early

twenties, was in the ANATASE form, sooner TiO₂ in the rutile form was

manufactured using sulphate route. Later chloride process was introduced to

manufacture rutile. Now in essence 80% of rutile TiO₂ is an ideal substitution for

100% ANATASE TiO₂. Substitution of TiO₂ can be made by using Kaolin, calcium

carbonate, silica and calcinated clay.

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4. Buyers

Developments in the paint industry are moving at a great pace. It is

particularly important for paint manufacturers to have access to TiO₂ pigments with

the highest standards of performance and quality as well as to well qualified and

knowledgeable pigment specialist to assist them in their formulating work.

5. Suppliers

With more technological advancements in the feed stock scenario, suppliers

are providing wide range of feed stocks. In the global feed stock scenario 56%of

titaniferous feed stocks represent upgraded products. This is because of awareness of

their technical/commercial needs. Feed stock producer would probably not be

successful TiO₂ pigment manufacturers because of the specialist technology require

5.1 FINDINGS

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The Travancore Titanium Products Limited is one of the pioneering units

engaged in the manufacturing of anatase grade titanium Dioxide.

Only male workers are employed in the plant of Travancore Titanium Product

Limited.

The educational qualification of the employees in TTP Ltd is very high. About

40% of the workers employed in the company are graduates.

The company is providing a well conceived transport system and most of the

workers rate the conveyance facilities as good.

There is a good follow up of the well defined rules and regulations.

The employees express satisfaction over the functioning of the various

departments.

Absence of marketing strategy.

The organisation is blessed with highly skilled and experienced employees.

Uniform for all workers except those in the administrative levels

Complaints from the local inhabitants, nearby the company

Pollution is the main problem faced by the company.

As the company is a PSU, government sanction is needed for most of the

process and hence administrative delay is of great concern for the firm.

5.2 SUGGESTIONS

1. Technological Up gradation

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TTP Ltd still follows the old technology that needs to be replaced immediately so that

new technology up gradation could give TTP a much better output.

2. Pollution Control

If proper steps are taken to treat the liquid waste and vapour emission from the

company, the company will become zero pollution company. TTP should undertake

more projects to control the pollution.

3. Method of production

Adopt new method of production that will minimize the cost of production

4. New project

The management of the company should take steps to continue the Effluent

Treatment Plant Project submitted by the project department

5. Development of new products

Because of the wide applications of titanium products, the company can

develop new products using the R & D facility.

6. Introduction of good Management Information System

TTP Ltd doesn’t have a good management information system. If it is

introduced in the company, the company should achieve a better integration

between the departments in the organization.

7. Training programme

Provide more training programmes to all the workers and office staff

of the organisation in order to develop their skills, knowledge and their attitude

towards works etc. This will automatically increase the production.

5.3 CONCLUSION

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The Travancore Titanium Products Ltd is a well reputed, profit making Indian

Company with an annual sales turnover of about 170 crores. The company is a boon

to India, as its main product, Titanium dioxide forms an essential ingredient of almost

all items used in our day-to-day life. Moreover, all the departments are functioning

hand-in-hand and contributing to improve the profitability of the organization.

The management of TTP is well blessed with experienced and qualified

persons, which has resulted in profit maximization. TTP's welfare facilities greatly

emphasis on the high concern it has for the human resource. With these assets,

Travancore Titanium Products Limited will have a bright future.

TTP is now facing great pollution problems, which will be solved soon with the

upcoming of the Effluent Treatment Plant Project. The Company is expecting good

profit in the coming years. With a strong management and dedicated work force, TTP

can overcome all its problems and exploit the ever-increasing market of Titanium

Dioxide.

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