sowmya dcw chapter

7/28/2019 Sowmya Dcw Chapter

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CHAPTER-3

INDUSTRY PROFILE

The chemical industry comprises that produce industrial chemicals. It is central to

modern world economy, converting raw materials (oil, natural gas, air, water, metals, and

minerals) into more than 70,000 different products.

Products:

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

polyethylene terephthalate, polystyrene and polycarbonate comprise about 80% of the

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

as well as thousands inputs to agriculture, manufacturing, construction, and service industry

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

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

paper and primary metals. Chemicals are nearly a $3 trillion global enterprise, and the EU

and US chemical companies are the worlds largest producers.

Product Category Breakdown:

Sales of the chemical business can be divided into a few broad categories, including

basic chemicals (about 35 to 37 % of the $ output), life sciences (30%), specialty chemicals

(20 to 25%) and consumer products(about 10%).

Basic chemicals or commodity chemicals are a broad chemical category

including polymers, bulk petrochemicals and intermediates, other derivatives and basic

industrials, inorganic chemicals, and fertilizers. Typical growth rates for basic chemicals are

about 0.5 to 0.7 times GDP. Product prices are generally less than 50 cents per pound.

Polymers, the largest revenue segment at about 33 % of the basic chemicals $ value, include

all categories of plastics and mam-made fibers. The major markets for plastics are packaging,

followed by home construction, containers, appliances, pipe.

Transportation, toys, and games. The largest-volume polymer product,

polyethylene (PE), is used mainly in packaging films and other markets such as milk bottles,

containers, and pipe. Polyvinyl chloride (PVC), another large-volume product, is principally

used to make pipe for construction markets as well as siding and, to a much smaller extenttransportation and packaging materials. Polypropylene (PP), similar in volume to PVC, is


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used in markets ranging from packaging, appliances, and containers to clothing and

carpeting. Polystyrene (PS), another large-volume plastic, is used principally for appliances

and packaging as well as toys and recreation. The leading man-made fibers include polyester,

nylon, polypropylene, and acrylics, with applications including apparel, home furnishings,

sand other industrial and consumer use. The principal raw materials for polymers are bulk

petrochemicals.

Life sciences (about 30% of the $ output of the chemistry business) include

differentiated chemical and biological substances, pharmaceuticals, diagnostics, animal

health products, vitamins, and crop protection chemicals. While much smaller in volume than

other chemical sectors, their products tend to have very high prices over ten dollars per pound

growth rates of 1.5 to 6 times GDP, and research and development spending at 15 to 25 % of

sales. Life science products are usually produced with very high specifications and are

closely scrutinized by government agencies such as the Food and Administration. Crop

protection chemicals, about 10 % of this category, include herbicides, insecticides, and

fungicides.

Specialty chemicals are a category of relatively high valued, rapidly growing

chemicals with diverse end product markets. Typical growth rates are one to three times GDP

with prices over a dollar per pound. They are generally characterized by their innovativeaspects. Products include electronic chemicals, industrial gases, adhesives and sealants as

well as coatings, industrial and institutional cleaning chemicals, with other products ranging

from 10 to 13 %. Specialty chemicals are sometimes referred to as fine chemicals.

Consumer products include direct product sale of chemicals such as soaps,

detergents, and cosmetics. Typical growth rates are 0.8 to 1.0 times GDP. Every year, the

American Chemistry tabulates the U.S. production of the top 100 basic chemicals. In 2000,

the aggregate production of the 100 chemicals totaled 502 million tons, up from 397 million

tons in 1990. Inorganic chemicals tend to be the largest volume, though much smaller in

dollar revenue terms due to their low prices.

Technology

As accepted by chemical engineers, the chemical industry involves the use of

chemical processes such as chemical reactions and refining methods to produce a wide


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variety of solid, liquid, and gaseous materials. Most of these products are used in

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

Solvents, pesticides, lye, washing soda, and Portland cement are a few examples of product

used by consumers.

Major players in chemical industry:

Chemical Industry is highly heterogeneous with following major sectors:

Petrochemicals Inorganic Chemicals Organic Chemicals Fine and specialties Bulk Drugs Agrochemicals Paints and Dyes

Petrochemicals

A petrochemical is one of the major categories in the chemicals. It is one of the

fastest sectors at 13% p.a. It covers;

Basic chemicals like Ethylene, Propylene, Benzene and Xylene etc. Intermediates like MEG, PAN and LAB etc. Synthetic fibers like Nylon, PSF and PFY etc. Polymers like LDPE/HDPE, PVC, Polyester and PET etc. Synthetic rubber like SBR, PBR etc.

Major players in petrochemicals are as follows:

Reliance Industries Ltd IPCL Baroda Nagothane Gandhar Haldia Petrochem GAIL


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Inorganic chemicals:

An inorganic chemicals has US $ 2.5 Billion industry. It covers basic products like

Caustic, Chlorine, Sulphuric Acid etc. Inorganic chemicals are mostly used in detergents,

glass, soap, fertilizer, alkalies etc. competitions from imports are on the rise.

Major products of Inorganic chemicals:

Installed capacity Soda ash Caustic soda Liquid chlorine Carbon Black Installed capacity Calcium carbide Titanium dioxide Aluminum fluoride Potassium chloride Sodium chlorate

Organic Chemicals:

Organic chemicals has 1 billion $ industry. It covers a wide range of chemicals. Its

units concentrated mostly in the Western India.

Major organic chemicals:

Methanol Formaldehyde Acetic acid Phenol Acetone


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Acetic anhydride Nitrobenzene Aniline

Citric acid Iso butyl alcohol

Fine and specialty chemicals:

Fine and specialty chemicals are low volume, high price/margin chemicals. They are

fragmented with large number of players. It has market around US $ 80 million p.a. The

major end user segments are textile, leather, paper, detergent, rubber, pains, polyester, oil,

and gas etc. Fine and Specialty chemicals are growing very fast.

Major players of fine and specialty chemicals:

India: ION Exchange, blamer Lawrie, Dai Ichi Karkaria etc. MNC: Ciba, Hoechst, Foseco, Nalco, Chemicals, Clariant, ICI etc. And many small indian companies

Major players of bulk drugs:

Ranbaxy Shasun Cipla Dr. Reddys Cheminor Lupin IPCA Sun Cadilla Aurobindo

Most of the bulk drug companies are indian companies, whereas some of the major

pharmaceuticals formulation companies are MNCs. Bulk drug units concentrated

around three areas:


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Bombay-Ankleshwar Hyderaad-Madras Chandigarh

Agrochemical

India is a large agricultural economy which is the major user. Average indian

consumption is very low (1/20th of world average). Agrochemical Consumption varies

depending on crop and region. Cash crops like sugarcane, tobacco, etc. are the major

consumers of pesticides (above 60%)

Major players of Agrochemicals:

India: United phosphorus, Rallis and Excel MNC: Hoechst Agrevo, Novartis, Bayer etc.

Products of Agrochemicals:

Insecticides Fungicides Herbicides Weedicides Rodenticides Fumigants

Paints and Dyes:

Paints and dyes has total Market- US$ 1 Billion. Its growth rate is 12% p.a. Its percapita consumption very low (400 gms) as compared to developed countries like USA (15

Kgs). India is a major exporter of dyes, mostly due to ban of production of some of the dyes

and intermediates in the developed countries due to pollution. Dyes used in Paints, Inks,

Tetiles, Polymers etc.

Major players in paints and Dyes:

Paints- Asian paints, good lass Nerolac, ICI, Courtalds, jenson & Nicholson

Dyes & intermediatescolor chem (Hoechst), clariant, ID, Atul, Mardia etc.


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Inks- coates, Hindustan inks, sakataChemical industry in world scenario:

The chlor-alkali industries are growing faster in the world. The chemical industry

plays a vital role in the production of many manufactured goods. The industry provides a

termination variety of materials to other manufactures. It also chemical products that benefits

people directly. Major products of the industry include detergents, drugs, dues fertilizers,

food preservations and flavoring paper products. During the last 1970s the caustic soda was

manufactured by utilizing the mercury cell technology. It was produced by amalgamation

process. But this technology consumed a lot of energy and power. There was also problem of

mercury pollution. It was during the same period the Mina Mata Desense resulting from

mercury pollution, the Jalan government issued a directive to all caustic soda plants to change

over to other process under a time pound program. This paved the way for the development

of Ion Excrany Membrane Cell (IEM) Technology and today almost the entire production is

done through IEM technology. This process apart from totally avoiding mercury, consumes

30% less power compared to the conventional process.

In the international scene, the increased production of paper, aluminum, soaps and

detergents naturally lead to increased requirement of caustic soda in the world scenario; thegreen peace movement is seeking the phase out of chlorine usage, especially the CFC

compounds. The has resulted in closing down of some of the European and North American

plants. With the help of international production, the international price of caustic soda is

steadily growing up. The caustic was selling for a more $50/tones hav gone up to $300/tones

now.

The international market operates in the context of demand and supply prevailing

from time to time. Situation of surplus and storage are cyclic as a result of which

international prices tend to be highly volatile. Predatory pricing is common and drops in

import duly often followed by steep drop in prices of chemical. Through the demand for

chlorine is growing fastly and it is the main product of the western countries the demand of

caustic soda is not so promising. Hence the units in the gulf and west are selling caustic soda

at cheaper price.

Chemical industry in Indian Scenario:


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The chemical industry in india is one of the oldest domestic industries and it

currently produces nearly 70,000 commercial products, from cosmetics and toiletries, to

plastics and pesticides. The country is the 13 th largest exporter of pesticides and disinfectants

globally. In terms of volume, it figures 12 th largest producer of chemicals. The petrochemical,

agrochemical, and pharmaceutical industries are some of the fastest growing sectors in the

Indian economy. The estimated worth of chemical industry is $28 billion and it accounts for

12.5% of the total industrial production of India and 16.2% of the total exports.

Indian chemical industry during 2005-06 was US$ 30.59 billion, a growth of 10.23%

over the previous year and a CAGR of 8.68% during the last 3 years. Chemical industry

occupies an important place in the countrys economy. During 2005-06, it contributed about

3% of GDP and 17.6% of the manufacturing sector. However, India continued to be a net

importer in 2005-06, with imports of US$7.92 billion and exports at US$5.95 billion. In the

post WTO era, Indian chemical industry is undergoing a massive expansion, brand building

and increased global reach. The industry is expected to grow at a CAGR of over 10% for the

next 3 years, in line with the growth of manufacturing industry.

Total turnover in the Indian chemical industry is around $30 million (U.S) annually.

Fertilizers contribute about 20% of these, while organic chemicals, synthetic fibers as

pharmaceutical contribute 17% each. Polymers and Dyes contribute 7% each to overall sales.

The chemical and pharmaceutical industry in India is highly fragmented. About 40,000

companies exist today and many of them are smaller units. The need for globalization has

made of these companies to make strategic alliances of merger operation to get economies of

scale. We are likely to see a similar consolidation of the chemical industry over the next 5

years. It is possible that a few small medium scale units may also collapse.


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COMPANY PROFILE

Origin of the Company:

Salt is the Essence of life. It is the starting material of DCWs basic products.

The growth of DCW over almost 50 years provides a classic case study of how to

build up a strong, stable organization capable of riding through the business cycle

fluctuations, and ready to enter the frontier areas of chemical technology. DCW owes its

presentation to the bold thinking and enterprise of its management. DCW ltd, the businessorganization is the flagship company owed by the Jain family and founded by the late

Pathmabhusan shri Shriyans Prasad Jain. The DCW history started in 1925, when the

foundation stone of India;s first soda ash factory was laid at Dharangadhara in the state of

Gujarat. The plant was taken over in 1939 and run the name of DCW. The company adopted

the Horseshoe as the logo, which stands till today and is widely recognized as a symbol of

excellence.

The process of growth leads to the introduction of caustic soda unit at sahupuram

during 1959, which is situated at small village near Arumuganeri in south Indian state of

tamailnadu. In 1970, a PVC Plant was erected through a subsidiary company. Rapid

expansion and modernization at both locations have resulted in the company having at

present three distinct divisions- the Soda Ash division at dharangadhra and the caustic soda

and PVC resin division at sahupuram. DCW has come a long way since its small beginning

and is now one of the Indias biggest chemical companies.

Mission:

It is our endeavour to manufacture and supply quality products and develop co -

operation and understanding through Trade and Commerce

THE MANAGEMENT:

The company has built up strong, stable management capable of riding through the

vicissitudes of business. DCW is keen on the winning strategies of doing things in the bestway with the qualities of intelligence, initiatives and dedication.


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ESSENCE OF DIVERSITY

Soda Ash Division

DCW pioneered the manufacture of Soda Ash in India. The original capacity of 60tons per day has been increased in stages to the present day capacity of 300 TPD and new

products have been added to ring diversity to the product portfolio. A major modernization

programme, aimed at energy conservation was completed in 1993. There has been a total

revamp of plant and machinery that has improved operating efficiency. Today, DCW has a

loyal customer including blue chip names such as Hindustan Lever, Atul Products, Gujarat

Alkalis, and Grasim Industries etc.

Caustic Soda Division

DCW commissioned a plant for the production of caustic soda in 1959. The output of

caustic soda has been increased in stages from 28000 TPA to 80000TPA, making DCW one

of the leading procedures of this basic chemical in India. Modernization has been an ongoing

activity to improve productivity & efficiencies in the electrolysis of caustic soda, replacement

of old equipment & installation of continuous salt saturators have resulted in substantial

energy savings.

Synthetic Rutile

High on the list of significant landmarks in DCWs history was the implementation of

the project to manufacture upgraded ilmenite, also known as synthetic rutile, for the first time

in Asia in 1970. The raw material, ilmenite ore, found in the black sands of Tamil Nadu &

Kerala, is chemically upgraded to form synthetic rutile of over 95% titanium dioxide content

and is used as an alternative to natural rutile required for manufacture of Titanium dioxide

and Titanium metal. Besides being one of the highest purity synthetic rutiels in the market,

DCWs product also has very low levels of radioactive content, making it a top quality

material. DCW has consistently exported synthetic rutile to the USA, Japan and other

demanding markets.

PVC Resin Division


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A petrochemical has been the new buzzword of Indian industry in recent years. In

1970, DCW became one of the first in India to enter this growing field by setting up a PVC

resin plant at Sahupuram in Tamil Nadu in Southern India. DCW was the first, and is

currently the only Indian producer to handle and store imported VCM, a volatile gas. This

installation is one of the few of its kind in South East Asia and gives the company a

competitive edge in meeting its import requirements. PVC resin is a thrust area for DCW.

Having established its excellence in polymer manufacture and marketing, DCW is making

efforts to develop new PVC applications. PVC is already the most widely used thermoplastic

in India, with a growth rate of over 15%.

VARIOUS FUNCTIONAL DEPARTMENTS

Stores Department Purchase Department Production Department Quality Control Department Human Resource Department Finance Department Sales Department Research And Development Department Export and Import Department Other Department

Mechanical Department Electrical Department

DEPARTMENT

The stores department is the headed and its activities are controlled by the Managing

Director Mr. A. Paramasivam and the hierarchy level consists of Deputy Manager, Senior


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Officers, Junior Officers and assistants. The materials such as chemicals and spare parts of

machines are stored up in this department. They maintain a stores ledger and various other

reports, such as monthly by product report, fortnightly purchase report, monthly sales report

etc.

Effective tabbing of stores is another noticeable feature; withdrawals are immediately

notes on a tab system which is of up to date automatically. A glance at the slip tells what is

on hand as well as the size of the demand and is destination. This ensures a proper

supervision over the Danger line. When the store drops below a certain quantity the store

keeper is able to restock, so that no work is stopped by a lack of material. Some of the

material that is stored includes coal, calcium carbide, and vinyl chloride monomer (VCM)

etc.

Some other functions performed by the Stores department are;

Receives stock and issues material to plant / departments based on requision. Accounts for quantity and value of the stock. Other major activities include purchase indent processing and scrap value.

PURCHASE DEPARTMENT

The purchase department is headed by Mr. Sambasivam who manages and

supervises all the purchase activities. He is responsible for the work of the contract,

negotiation with the suppliers, determine quality and quantity, ordering and installing (where

applicable) and paying for the materials itself.

Responsibilities of purchase department

To buy at the right right time, right price and at right terms Ensuring the continuity of supply Selection and elevation of suppliers/ vendors Aware of long term and short term effects Preserving and enhancing reputation of company Maintain stock level


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MAJOR PURCHASING ACTIVITIES

Seek through the purchase indent sent by the user department incase of stockunavailable.

Where each material has a material code for reference The availability of the material is checked and if insufficiency occurs, a tender is

called off and in that the party who is eligible to give the quality product at specified

price and at specified terms what company experts will get the order.

Security deposit is collected for placing tender which is refundable. The technical specifications of the goods are received from the engineers in the plant. Next the acceptance letter is got from the parties regarding the supply of goods. Purchase department is also responsible for preparing the work orders for contract

works.

It has to work with finance department to obtain discount, matching, invoice, verifyreceipt, passing of invoices for payment and settlement of accounts.

In case of scrap sales the online E-auction is also available. Other activities like assisting with preparation of material expenditure, purchasing

budget etc has to be done by purchasing department.

PRODUCTION DEPARTMENT

The production department is the most important department in the organization

which is headed by two vice president, Cogen power plant, Ilmenite and PVC plant by

Mr.R. Jeyakumar and chlor- alkali division by Mr.Subash Chander Tandon. The

production department activities are supervised and controlled with the association of

Senior General Manager, General Manager, Dy. General, Manager, Dy. Manager,

Senior Engineers, Engineers, Workers/ Apprentice.

The employee involved in production includes both the permanent workers and

contract works. The permanent workers are paid with the salary on monthly basis and

contract workers paid the week.

The products produced at DCW sahupuram includes, salt, Caustic soda Lye,

Solid, Tri-Chloroethylene, Upgraded Beneficiated Ilmenite, Ferric chloride, UTOX,

Yellow Iron oxide, PVC Resin and Electricity (using coal). The production activity is

carried out only on the basis of the order placed by the customers.

PRODUCTION PROCESS


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1. Salt

Solar energy is used to evaporate sea water and subsoil brine to produce

solar evaporated salt. Sea water is pumped from the jetty into the field consisting a

serious of shallow concentrating ponds called salt pans. Through the action of sun and

winds, the water gets evaporated. The solution that remains gets more concentrated as

it flows in series from one end of the field to another resulting in crystallization of

salt. Accurate control of the brine is exercised to produce salt of high purity as

required by industry. DCW possesses at Sahupuram about 1980 acres of salt fields for

its salt production.

2. Caustic Soda Lye, Solids and Flakes

Industrial grade common salt (Sodium Chloride) is dissolved in water to

make brine solution. It is purified in brine plant by using Sodium Carbonate, Caustic

Soda and Barium Carbonate to remove impurities like Calcium, Magnesium and

Sulphates. Saturated and purified brine is electrolyzed membrane cell technology. In

which DC current applied. Sodium Chloride splits into Sodium and Chlorine. Sodium

ions passed from anode thro membrane and combine with water from Caustic Soda in

Cathode side. The Caustic Soda (32%) is evaporated to 48% commercial Caustic

Soda Lye. It is further concentrators to produce Caustic Soda Flakes in drums and

cooled to produce Caustic Soda Salt.

3. Hydrochloride acid

During the electrochemical process in the production of Caustic Soda,

Chlorine and Hydrogen gasses liberated. A part of the Chlorine gas and the Hydrogen

gas are cooled with water. They are the passed through demisters to remove

entrainments.

4. Liquid Chlorine

Chlorine gas resulting from the manufacture of Caustic Soda is cooled to

20 C using chilled water. Thereafter, it is dried towers using Sulphuric acid. The

dried Chlorine is compressed and liquefied at around 10 C in Chlorine Liquefier

from where it flows to storage.

5. Tri- Chloreothylene

Trichloroethylene is prepared by chlorination of acetylene to from

tetrachloroethane and subsequent dehydrochlorination to from trichloroethylene.

Acetylene produced by reacting calcium carbide with water is treated to remove

impurities like moisture, hydrogen sulphide. etc. and then directly chlorinated using


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ferric chloride as the catalyst in the TETRA synthesis towers to produce

tetrachloroethane. This is future dehydrochlorinated with lime slurry and crude

trichloroethylene is formed. This is distilled and purified and stabilized before filling

in drums.

6. Upgraded Beneficiated Ilmenite

The ilmenite ore is purified and reduced with charcoal to convert Ferric

Oxide which is available in the ore into Ferric Oxide. It is then leached with

hydrochloric acid. During leaching process, iron content in ilmenite ore is removed as

Ferric Chloride in liquid from thereby raising the titanium dioxide content in ilmenite

to above 95%. The leached material is wasted, filtered and calcined to obtain the final

product Titanium Dioxide of over 95% purity. This is commercially called

Beneficiated Ilmenite or Synthetic Rutile.

7. Ferric Chloride

Aqueous Ferric chloride is produced by the neutralization of free acid in

leach liquor using Iron Scrap. After neutralization it is chlorinated using chlorine.

Ferric chloride thus produced has a concentration level of more than 40%.

8. UTOX

UTOX is manufactured by removing the fine particles of Titanium

Dioxide from the liquor blown down during the leaching process of ilmenite in

digesters. The recovered liquor is filtered, washed, dried and pulverized to obtain

special grade TiO2 called UTOX.

9. Yellow Iron Oxide

The product is made by precipitation process using Ferrous Chloride and

Caustic lye. The leach arising out of the manufacture of Synthesis Rutile in ilmenite

plant contains Ferrous Chloride with free acid left out during the leaching process.

Free acid is neutralized using scrap iron, which gives additional Ferrous Chloride,

seed formation and crystal growth is done in reactor and the reacted mass is then

filtered, dried, and pulverized to get the yellow iron oxide.

10. PVC Resin

The production of Vinyl Chloride out by the method of suspension

polymerization technology. The PVC slurry coming out of the reactor is sent to blow

down kettle, where the surplus VCM gas is so recovered is sent to Gas holder for

liquefaction and recycle. The wet cake is dried in dyers, bagged and sent to godown.


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The Chloride Monomer, buffer, suspending agent and de-foaming agent are

admitted in a react in a controlled condition.

11. Electricity

Co-gen plant is to generate additional electricity of 2*25 MW using Coal.

For this, Atmospheric Fluidized Bed Combustion (AFBC) Boiler of 125*2 MT/hr and

staem Turbine generator (with speed more than 5500 rpm) is proposed to be used. The

entire quantity of power (2*25 MW) generated will be used for the expansion

projects.

The Boiler used is 125*2 MT/hr capacity and after generated electricity

(2*25MW). The steam required will be used in the process. The AFBC boiler has the

flexibility to intake 100% coal. The raw material Viz., coal is transported from

Thoothukudi port by road and then stored in raw materials storage yard. Then the raw

material are taken to fuel preparation area/sizing area where the raw material are

crushed using crushers and sieved in vibrating screens to obtain required sizes and

then stored in soils/bunkers.

Coal is then injected and fired into the boiler to generate stream. The steam

generated will then be taken to the steam Turbine Generator and electricity

(2*25MW) will be produced. The steam required for process will be extracted from

the turbine.

The steam is then taken to the steam turbine generator and electricity is

produced. This plant has totally the dependence on the state supplied grid power. The

plant has been running continuously and meets the entire power requirements of

complex at a cost lower than the grid. The electricity is distribute to all the plants and

the entire sahupuram complex.

QUALITY CONTROL DEPARTMENT

The company has initiated strong steps towards pursuing Total Quality

Management in all activities. The company having quality standards of ISO 9001-

2008, OHSAS 18001-2007, ISO 14001-2008.

Teams of staff personnel have been intensively trainees to practice and preach

TQM across the organization. Workmen have been motivated to from quality circle to

resolve work place related problems using TQM tools and techniques. A few of the

quality circle have exposed to regional and national level competition of quality

circle, where they have won laurels and their work appreciated. Quality improvement


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teams of staff personnel, cross functional in composition, have also been formed to

deliberate and implement measures of improvements. Regular gatherings of staff

personnel are organized to provide them a platform for interacting and presenting

suggestion towards cost improvement. Many of these suggestions have been

implemented with successful results. You will get enough opportunity to participate in

continuous program and exhibit your innovative and creative abilities.

HUMAN RESOURCE DEPARTMENT

The company has been following a standard procedure for recruitment of best personnel for

all the departments and is making constant and continuous efforts to retain and groom them

to meet its present and future requirements. The various functions that are being going on in

HR departments of DCW are:

Recruitment

It is an important process that is follow by a company to recruit various workers

both employees and staffs to be selected and placed in job by means of recruitment of the


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department. Presently according to the HR calculation there will be no recruitment up the

period of 2006.

Payroll Processing

It is an important here in DCW the salary to staffs are paid in 4th for worker all the

attendance regarding the workers are being send from time office to HR department on 4 th of

every month and in 24th for staff. Salary also paid through bank or direct cash with the pay

slip.

Retirement

When an employee gets retirement, the following things are to be done as means ofsettlement,

a. Retirement settlement fund

b. Pension

These are being done by the HR department all during the worker retirement; all the

details are erased about the current workers.

Statutory Obligation

All the file movement within the organization and the various production details are

being chocked by the HR department at equal interval of time.

Employee Time Keeping

It is entirely a separate unit which worker separately and only the detail about the

attendance and various statutory procedure regarding all workers are being maintained and

send to the HR department. Since 1995 punched card has been used in the office for all

workers. As according to the card punching time the attendance of workers are being

entering by computers a punched card Rs. 30. A grave of 10 minutes is given to the worker.

Holidays


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Nine holidays will be allowed. Consisting of six common holidays three are sectional

holiday every year. For example, if you are a Hindu you are availing the three sectional

holidays. The lists of holidays are notified by the personal department.

Various shift Times

Shift Working hours

A shift

B shift

C shift

6.00 am2.00 pm lunch (12.00 noon12.30 pm)

2.00 pm10.00 pm break (6.00 pm6.30 pm)

7.30 am4.30 pm lunch ( 12.00 noon1.00 pm)

Workers general shift ( Monday to Saturday) 7.15 am to 4.15 pm.

Workers Leave Maintenance:

The various leave eligibility given to the workers

Casual leave 10 days per year causal leave will automatically lapse at the end ofthe year.

Sick leave will depend upon you are in the staff or workman category.Welfare Activities

Welfare dress:All workmen certain categories of staff like drivers, attendees etc are

provided with work dress with shoes or foot wear.

Canteen:Employees at work are provided wholesome food in the canteen. This

operated by the employees co-operative and subsided by the company. The

canteen also provides tea or service at work spots in all the shifts.

Vehicle parking:


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Facilities have been provided adjacent to the shifts of parking vehicle of

workmen. Provision has been made in the administration complex for parking of

vehicle of staff personal.

Transport service:DCW Ltd has provided transport service in all the shifts for the nominal

cost. The companies operate a daily pick up and drop service for staff and

employees residing in Sahupuram, Authoor and Arumuganeri up to New

Colony.

Carrier service:The company arrange for transportation of carriers containing afternoon

meal for general shift personnel everyday from following areas like New

Colony, Arumuganeri and Authoor.

Co-operative stores:Co-operative stores are being facilitated to the employees in purchase of

home needs and textile and in credit. It will be lately collected in the salary of

the employee.

Medical facility:

A six-bedded hospital with emergency room and other essential facilities has been

set up within the complex. A qualified doctor is in charge in hospital. All the accidents with

the company and illness of the workers within the company are being treated to the maximum

level.

Training and Counseling:

HR department is conducted various training programme to their employees.

Industrial relations:

The relations between the employees and the management were cordial and an

atmosphere of understanding prevailed throughout the year.


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FINANCE DEPARTMENT

The finance and Accounting activities is headed by the General Manager (Fin.)Mr.Chandrasekar. The accounting section deal with the transaction related to purchase and

sales and prepares the financial statements.

The finance section of the department receives demand draft and looks after all the

payments as per rules and norms. All the receipts are collected and billed in the evening and

the amounts are remitted in the bank on the following day. All payments are made by cheque

as well as demand draft.

FUNCTION

The two important functions of finance department is

1. ACCOUNTING POLICIES & STANDARDS

Based on Charted Institution, the DCW Ltd prepares the accounting policies and

standards.

2. Accounting Managements Information System (MIS)

The DCW Ltd follows this system well, as all the transaction are paid through online.

This helps the company

Reduce consumption of time Proper communication Risk free

The company is one of the outstanding private limited listed out in BSE (Bombay

Stock Exchange) and NSE (National Stock Exchange) in the share market.

The primary functions of the finance department are

Sales, purchase, banking, Insurance, and general account maintenance. Responsible for all the matters connected with the financial accounting.


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Major activities cover fixed assets accounting, purchase accounting, capitalworks accounting, generation of MIS reports on financial aspects and cost

accounting.

And other function including processing travel bills and import receipt, salary,freight payment and bank transaction.

Collect all taxes and revenues of the city. Invest cash reserves. Prepare financial reports. DCW Ltd finance section has to maintain the followings Bills passing Bills payable Banking Sales account Cost accounting Management accounting

SALES DEPARTMENT

The Sales department is headed by Deputy General Manager Mr. R.

Jeganathan and the department further consists of Manager ,Senior Officer, Junior Officer,

Assisstant etc.

Product dealt are salt , Caustic soda, Liquid Chlorine, Hydrochloric acid, Upgrade

beneficiated illmenite, Utox, Yellow iron oxide, Tri-Chloroethylene, Ferric chloride and PVC

Resin.

These products are sent to industrial customers, dealers, consignment agents. The

credit days given to them are 45-60 days to the maximum for the payment, which depends

upon the goodwill of the company. All the production targets and other matters like sales

target, cash flow and fund flow are decided and controlled by the Mumbai head office. For all

the products sold invoice is prepared clearly and central excise duty is to be paid by the


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company at the week of every month and the records maintained for the purpose of

inspection.

F.I.F.O Method

This is the method followed in in DCW for the dispatching of goods, the person who

orders first will get the goods first at all cost.

Sales department who only take control and inspect the production in the plant and

whether it meets their sales requirement and the finished goods are loaded into the carriers

then and there daily in shift basis.

Samples are also sent to various companies if required by them in order to improve thesales, the representatives who take care of the orders. And additionally the chlorine Cylinder

certificates are Lloyds certificate, Explosive certificate and Hydrolic certificate are needed to

fill cylinders.

The repainting needs to be dined in every 3 months and a 24 hrs leak proof test are also

necessary before departure of cylinders. A normal size lorry can carry at most 7 cylinders.

The capacity of HDP Barrels is around 300 Kgs and M.S Drums is around 280 kgs, Utox 25

kgs packing. The goods are insured by the parties or the company; Transporting charges are

borne by the company for the government parties only. A stock card is also maintained by the

department which records all the details of the stock. The business committee which consists

of top officials from each department will gather every week twice in order to decide on the

carriers and other official matters.

INVOICE:

Before the product is sent to the customers the invoice is prepared as normal

procedure and the contents are

Name of the company TIN NO.,C.S.T Reg No Mode of supply Mode of payment Name and address of the consignee Division and range of goods sent for taxation purpose


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Destination of the goods to be sent Parties ID L.R Details Weight of the commodity

FUNCTION

Training the salesman in knowledge of the goods and in methods of sellingthem

Supervising and directing the sales activities of the men out in the fieldsending them letter and providing helpful information.

Preparing and furnishing equipment for the salesmans I the way of samples,Sample depending on the nature of the business and the product or service

sold.

Supervisory and checking the expense accounts, route lists, detailed reportsand daily letters of the salesman.

Preparation of sales manuals or salesmans handbooks, giving detailedinformation about the company, the products and the sales principles and the

method involved in selling.

Cooperating with the production department in the matter of quality,quantities, continuous, packages and seasonal goods and reporting their

reaction on dealers and customers.

Making investigations of the products or offerings to discover new uses andnew appeals to the dealers or customers.

Conducting or arranging for special market survey and analyses of territorieswith a view to discovering new markets for the goods or new methods of

developing old markets.

Other major activities include generation of sales involves, coordinating withtransports, organizing shipments and maintenance of physical stock at go

downs.

PACKING

The goods are packed and sent in the following ways as the packing is also one of the

most important aspects in the sales process it needs to be done with effectively.


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RESEARCH AND DEVELPOMENT DEPARTMENT

The R&D department is concerned with doing research and development new products.The Central Laboratory is made available at Sahupuram and the laboratory is headed by the

Deputy General Manager Mr. K. Seshagiri Rao, the department consists of Deputy Manager,

Engineer and Assistant Engineer etc. the major objectives of the research and development

department are to conduct research and to develop new prodcts for the company.

Staying ahead implies being constantly on the move, keeping track of technology and

market needs and being innovative. The R&D wing at Sahupuram is credited with the

following significant in- house efforts.

Bench scale process developed for ileminite Ore beneficiation was scaled up &engineered entirely by DCW(1970)

Development of Utox from waste liquor of digester in ileminite plant- a partialreplacement to TiO2 in paint industry (1978).

Filling sandy wasteland with polyethylene to avoid seepage of concentrated brineresulting in 60% increase in salt production (1979-83).

Developing of process to manufacture Yellow Fe2O3 pigment using waste leachliquor from BI Plant (1992-93).

EXPORT AND IMPORT DEPARTMENT

The EXIM Department is headed by the Deputy General Manager

Mr.M.V.Ramakrishna Rao and the activities of the department is further controlled and

undertaken by Senior Officer, Junior Officer and Assistants.

EXPORT

All the preliminary steps of DCW Limited being done by the Head Office Mumbai.

Preliminary steps such as


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Identifying prospective buyers Getting exports orders Finalization of price/Terms and conditions/Specifications/Mode of Payment/

Mode of shipments.

Next stage of the DCW Limited is the execution process. This process is being

handled by the unit at Sahupuram. Execution process such as

Manufacturing Packing and marking Sampling and inspection Arranging for dispatch/shipment Preparation of documents (pre- shipment & Post- shipment)

Third and final stage is being done by the Head Office, Mumbai. All the Post shipment

documents received from Sahupuram to H.O Mumbai is being Summarized for bank

negotiation purpose.

EXPORTING COUNTRIES

DCW limited has been exporting their products to several countries such as,

Srilanka Netherland Japan Singapore Muscat Kuwait Saudi Arabia Istanbul Brazil Turkey USA Kenya

IMPORTS


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Apart from export, DCW Limited has been importing several products for their

manufacturing units such as,

Calcium Carbide VCM Steaming Coal Cogen spares turbine Alcotex BHA Noxol

IMPORTING COUNTRIES

China Saudi Arabia Japan Indonesia U.K Italy

OTHER DEPARTMENT

MECHANICAL DEPARTMENT

Responsible for breakdown and preventive maintenance of all equipment Overhauling of rotary equipment like pumps, blowers, compressors and

gearboxes.

Repair and reconditioning of rotary equipment and static equipment like values,vessels etc.

Erection of non-equipment and shut down maintenance. The department has a full fledged workshop, fabrication shop, rolling gang

rubber lining and drum plant, which makes drums for dispatching Caustic Soda

Lye.

ELECTRICAL DEPARTMENT


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The electricity produced at Cogen plant is distributed to all plants in the entire DCW

complex including Sahupuram colony and kamalavati Hr. Sec. School. About 28 MW of

power is required for total distribution to all plants at present. The major distribution is to the

Rectifiers which consume about 85% of the total power generated. The Rectifiers

convert a supply to high current DC supply and feed cell house where the main product

Caustic Soda at high efficiency. Maintenance of 11 KV distribution transformers in each

plant for running all motors and other machines.


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sowmya dcw chapter

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