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CHAPTER 1
INTRODUCTION
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INTRODUCTION
The organizational study is limited to acquire the knowledge regarding the function as well as
the managerial aspects of THE TRAVANCORE COCHIN CHEMICALS LIMITED
,UDYOGAMANDEL,KERALA.
Organizational study is the systematic study and careful application of knowledge about how the
people as individuals and as groups act within an organization. An organizational study
encompasses the study of organizations from multiple view point methods, and levels of
analysis.
Whenever people interact in an organization many factors come into play. like all modernist
social sciences organizational studies seek to control predict and explain.
The organizational study was done as partial fulfillment of the requirement for the award of
Master of Business Administration(MBA). The chief objective of the study id to understand the
working of various department functions during a particular period and the concept of
organization.
1.1 SCOPE OF STUDY
The study was limited to Travancore-Cochin Chemicals Limited.,Udyogamandal. The study was
to get a general awareness of the function of the various departments and management of TCC
Ltd. The period available for the study was limited .There are many departments like marketing,
materials, finance, operations and technical services Etc. the attaining of information about
different departments helped to analyze the strengths , weakness ,opportunities and threats of the
company.
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1.2 OBJECTIVES OF THE STUDY
The objective of the organization study includes the following:
To understand the organizational structure and the working of the various functional
departments.
To have an exposure to the work environment.
To understand the overall performance of the company.
To make an analysis of the organizations performance.
To study the relevance of TCC on chemical industry field in Kerala.
1.3 SIGNIFICANCE OF THE STUDY
The main significance of the study are;
The study attempt to understand the performance of different departments.
To understand the quality assurance of the organization.
To understand financial position of the organization.
Getting an organizational exposure.
To understand the market position of the organization.
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1.4 METHODOLOGY
It is an overall operation framework, which help to collect the required data. The
methodology used in the study involves the collection data through primary and
secondary means within the given time period.
PRIMARY DATA
It refers to the first data collected from primary sources .The primary sources of
data collection were direct personal interview with managers of concerned
department,official staff and workers of the company.
SECONDAY DATA
Data which are not originally collected but rather obtained from published or
unpublished sources includes:
1. Company records
2. Annual records
3. Official sites of the company
4. Internet
The collected primary data and secondary data were used in the
preparation of this organizational report.
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1.5 PRINCIPLES OF ORGANIZATION
Principles means the theoretical basis on which something is built up.The theoretical basis is
formulated from fundamental truth. Some of the important principles to be followed for
developing efficient organization are:
Principles of unity of objective
Principles of specification
Principles of coordination
Principles of unity of command
Principles of span of control
Principles of exception
Principles of flexibility
Principles of simplicity
Principles of communication
Principles of efficiency
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1.6 REQUISITES OF A GOOD ORGANISATION
The organizations are born out of a necessity for clear well defined system or structure, which
people require for execution of their responsibilities. It helps them to relate to each other,co-
ordinate their activities and achieve the organizational goals . it minimizes confusion natures
suitable and maximizes effectiveness.
For proper function of the organization certain requisites are to be fulfilled .They are as follows.
The objectives are to be clear, candid and well defined and the organization must have a
capacity to achieve it.
All activities therein must be properly coordinated.
Organization must be complete, it should include all essential activities.
The communication system within the organization must be effective.
The span of controls at all levels must be reasonable.
There should be a provision for future expansion.
All activities and functions should follow strict procedures.
There should be proper diversion of authority and responsibility.
1.7 LIMITATIONS OF STUDY
The limitations of the study are the following:
TCC is a large chemical industry; as such accurate data regarding the internal affairs of
the company are not easily available.
The available data is not sufficient to get the desired result.
As a vast coverage is needed for getting the desired results time is a limiting offer.
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CHAPTER 2
PROFILES
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2.1 INDUSTRY PROFILE
INTERNATIONAL SCENARIO
The world chlor-alkali industry is growing .The chemical industries are growing faster in the
world. The chemical industry plays a vital role in the production of many manufacturing goods.
The industry provides a tremendous variety of materials to other manufacturers. Major products
of the industry include detergent, drugs, fertilizers, food preservatives, flavoring and paper , fine
chemicals etc.
Most major chemicals are basic chemicals used in many countries .It is used to produce fertilizer
and other chemicals other basic chemicals include chlorine and sodium hypochlorite.
The production has become increasingly concentrated in multinational corporations which have
plants and offices in a number of countries. To achieve low cost of production, the companies
locate their factories in developing countries where raw materials are readily available. Many
basic chemicals are produces in developing countries by factories of multinational firm. But
chemicals requiring advanced production methods are made in industrialized countries.
In international scene, increased scene, increased production of papers, aluminum, soap and
detergent naturally leads to increased requirement of caustic soda.
In the world scenario, the Green Peace Movement was seeking the phase out of chlorine usage,
especially the CFC compounds. This has resulted in closing down in Europe and restricted the
production in North American Plants. With the drop in international production, the International
price of caustic soda was steadily rising. The caustic which was sold for a more 50$ per tones
has gone up to 300$ per tones.
The international market operates in the context of demand supply prevailing from time to time,
situation of surplus and shortage are cyclical as a result of which international prices is common
and drop in import duty often by steep drop in price of the chemical.
Though the demand for chlorine is growing fast the demand of caustic soda is not so promising.
Hence the units in the gulf and western countries are selling caustic soda at a cheaper rate.
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MAJOR COUNTRIES PRODUCING CAUSTIC SODA
- USA - FRANCE
- RUSSIA - CHINA
- INDIA - GERMANY
- CANADA - JAPAN
INDIAN SCENARIO
In India, caustic soda is produced by electrolysis process. The manufacture of caustic soda
started during 1940 in the country. The growth was rather slow during the 1960s and after the
growth picked up substantially .Today there are about 38 chlora alkali units in India.
MAJOR SOUTH INDIAN CHLORA-ALKALI UNITS
Chemplast, Tamilnadu
Chemfab Alkalies Ltd. Pondicherry
Southern petro Chemical Industries Corp.Ltd.Chennai
Kothari Petro Chemicals Ltd. Chennai
Sree Royal Seema Alkalies & Allied Chemicals ,Andhra Pradesh
BILT, Karnataka
DCW Ltd, Metur
TCC Ltd, Kerala
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STATE SCENARIO
Caustic soda is one of the basic inorganic chemicals manufactured from common salt caustic
soda; Hydrochloric acid and sodium hypochlorite are the products.
In the Kerala state, TCC is the only Chlora-Alkali industrial unit and has a production capacity
of 175 MT Caustic Soda per day. There are many small scale industries in the state which
consumes caustic soda for the production of soap, detergents etc. Because of high transportation
cost . it is not possible to export caustic soda in large volume from the state. TCC is the only one
chlor alkali unit in the state and it is employing environment friendly and energy efficient
technology. Chlorine is a basic material required for water purification and without chlorine the
water workers will not be able to supply good drinking water to the public.
TCC SERVING THE NATION
TCC is employing 786 persons directly and many more indirectly. Its products find extensive use
in manufacture of day to day consumable articles. Chlor-alkli products are basic chemicals used
in the manufacture of plastic, paper, textiles, insecticides and pharmaceuticals. Many chemical
industries in the state depend on TCC for supply of caustic soda Hydrochloric acid, Chlorine &
Soda bleach.
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2.2 COMPANY PROFILE
INTRODUCTION
The Travancore Cochin Chemicals Ltd, popularly known as TC Ltd is a state public sector
undertaking owned by the government of Kerala.TCC is situated at Udyogamandal in cochin
Industrial belt. Incorporated in 1951, TCC is one of the oldest chlora-Alkali unites in the
country.TCC is a large chemical industry engaged in the manufacture and marketing of caustic
soda, chlorine, Hypochlorite acid, soda bleach and related chemicals. TCC is an ISO 9001-2000
certified company. The company supports a large number of Industrial units of strategic
importance by supplying basic chemicals.
CORPORATE HISTORY OF TCC LTD
The Travancore Cochin Chemicals Ltd was established in 1951 and started commercial
production in 1954 with an installed production capacity of 20 tones of caustic soda per day. The
idea of establishing the unit was conceived by M/s Shehasayee Brothers the managing agent of
FACT. This was for to supply HCL to FACT for making Ammonium Chloride utilizing
Ammonia from their newly started plant. FACT and MCIC (mettur chemicals and Industrial
Corporation) registered as a joint venture company under the name Travancore Mettur
Chemicals (TMC) in 1950. The partnership was unable to complete the project due to shortage of
finance.TMC has taken up their problem with the Travancore Cochin state government. By that
time two other companies(Hindustan Industries Ltd.(HIL)& Indian Rare Earth Ltd(IRE)) were
setting up their plants at Udyogamandal with a view to receive chlora alkali products from TMC.
As the stoppage of TMC could affect three major companies the Travancore Cochin State
government gave financial assistance to TMC and the company was renamed as Travancore
Cochin Chemicals (TCC) in 1951.
Travancore Cochin Chemical (TCC) is the first unit in India to manufacture Rayon grade
Caustic soda. The company has implemented a number of technical renovations to improve
productivity of the plant. They now use membrane cell Technology for their production. At
present TCC has production capacity of 175 TPD of caustic soda.
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PRESENT SITUATION
TCC is the only one chlor-alkali unit in Kerala. In India, there are approximately 40 Chlor-Alkali
units as competitors. TCC owns 109 acres of land and around 786 employees are working in
three shift plants are functioning by utilizing full capacity. The company has helped in attracting
new industries to Kerala in past like Indian Rare Earth Ltd, Hindustan Insecticides Ltd,
Hindustan News print Ltd , Kerala minerals & Metals Ltd etc. though assuring the availability of
raw materials.
PRESENT CAPITAL FORMATION
INVESTORS SHARE IN PERCENTAGE
Government of Kerala 80%
KSIDC 17%
FACT 2%
Vinly Investment Ltd, Chennai 1%
Total 100%
INDUSTRIAL INFRASTRUCTURE
The company is conveniently situated at Udyogamandal .Industrial area in Kerala state on
the river bank of Periyar. Out of the 109 acres of land which the company owns include 20 acres
leased out of M/s BSES Kerala power Ltd on which company receives lease rent. In addition to
the plant and building it has a full-fledged housing colony for accommodation of employees. The
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company is having a water treatment plant which draw from Periyar River with a capacity of 5
mgel.
CORPORATE MISSION
TCC is committed to supply quality chemicals at competitive prices to customers satisfaction.
Concern for environment and safety are our priorities we intended to achieve,
Utmost level of conservation of all resources including energy.
Cost effectiveness in all operations.
Regular up-gradation of technologies used in processing.
Compliance with laws & statutory regulation.
Capacity up gradation by 50 TPD.
Production of Sodium Chloride.
CORPORATE OBJECTIVES
The corporate objectives of TCC Ltd are the following
To produce & Market Caustic Soda and allied chemicals economically and in an
environmentally sound manner.
To maintain optimum use level of efficiency and productivity and to secure optimum returns on
investment.
To maximize profits from projects taken up.
To continuously improve the plant and operational safety and to work within the emission
limits set up by pollution control board.
To continuously up grade the quality of human resources of the company and to ensure
organizational development.
To ensure corporate growth by expansion and diversification.
To care for the community around.
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QUALITY POLICY OF TCC
We are committed to enhance customer satisfaction by providing products and related
services complying with a continually improving quality management system.
ENERGY POLICY
We are always committed to conservation of energy by all possible means. To
accomplish our mission we strive for :
Technological up-gradation reduce specific energy consumption
Conducting energy conservation studies including energy audit & adopting the apt measures for
conserving energy
Contacting other organizations & enriching our experience on energy conservation
Using renewable energy sources to the external possible
Disseminating knowledge &information on energy conservation to our employees
Low energy fuels also to be tried depending up on feasibility.
HEALTH & SAFETY POLICY
TCC is committed to provide a work every one of its efforts to manufacture high quality
products at competitive price. The company will comply with all statutory requirements
in this regards.
The company will provide a work environment in which identified hazards are controlled
if elimination is not feasible whenever necessary.
Accident prevention is the direct responsibility of the Line Management & will be an
important criterion for performance appraisal Line Management will ensure that all
safety measure are incorporated in the operating and maintenance procedure as well as in
any process technology changes in the plant / infrastructure.
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Consideration of health & safety will be given proper weight age in selection and
deployment of the personnel.
The company will ensure that health and safety aspects are given due consideration in
decision regarding purchase of plant equipments machinery and materials.
Every employee of the company shall perform his / her job adopting safety and proper
work methods and using appropriate safety equipments understanding that their career
advancement is linked with safe performance.
Contractors, sub-contract workers, transporters and visitors entering the factory shall be
required to observe health & safety practices of the company in all their activities
All contract jobs will be carried only through the laid down procedures with appropriate
supervision
The company will carry out safety audits, risk assessment studies, emergency mock
drills, and periodic assessment of health of its employee as well as status of environment
& implement remedial measures.
Employee, consumer & public awareness where necessary will be imparted with the
required education, training & returning on safety & health aspects related to the process
and products.
The company will include a resume of its health & safety performance in its annual
reports.
Since the success of the company depends on the health & safety of its imperative
that work place hazards be identified appropriately evaluated and effectively controlled to
achieve this goal whole hearted co-operation of its is solicited for this.
GROWTH OF TCC
1956 A continuous caustic Fusion plant with a capacity to produce 20 tonesof caustic soda per day was added
1958 A chlorine liquefaction plant wa added mainly to meet demand from
the newly set up plant of Hindustan insecticides Ltd ,Udyogamandal.
1960 Production of caustic soda was raised to 30 tons per day
1963 The caustic soda capacity was raised to new level of 40 tons per day
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day. The company established a new unit for the manufacture of
Sodium Hydrosulphate with rated capacity of thirty per day raised to 60
Tones per day.
1967 The third stage of expansion capacity was raised to 60 TPD
1970 A 60 TPD CCF plant was set up. The sets its own water treatment plant
1975 Fourth stage expansion a new 100 TPD caustic soda plant employing
Mercury cell Technology which was installed from Germany.TCC started its
started its own water treatment plant.
1975-80 Exported commercial Hydrochloric acid to gulf countries
1983 Installed indigenously developed plant to recover mercury from
Effluents.
1987 Installed Hydrogen firing system
1988 Replacement of Graphite anodes by titanium anodes
1990 Brine dechlorination unit commissioned
1992 A research and development section was set up
1997 The company commissioned 100 TPD caustic soda plant in technical
collaboration with ASAHI GLASS company of Japan using the
Membrane Cell technology. The advantage of membrane cell technology
was that the energy consumption got reduced by 30% and avoided the
the use of mercury
2000 The company set up a brine purification plant
2002-03 The Company was increased its production capacity of membrane cell
Plant 125TPD
2004-05 25 TPD caustic soda plant employing membrane cell technologies from
M/s UHDE, Germany was commissioned
2005-06 25 TPD caustic soda plant employing membrane cell technology from
M/s UHDE, Germany was commissioned
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ACHIEVEMENTS
TCC is always in the forefront to adopt and incorporate the latest technology in its
plants. Several innovative and modernization schemes were implemented to achieve higher
production and productivity energy conservation environmental protection and economy inputs.
TCC has been dynamic to be proactive to market conditions and thus to came out as a profitable
public sector undertaking TCC was bestowed with various awards for excellent performance
with regards to productivity, energy conservation and environmental protection which is
considered as an award for commitment rather than for efficiency.
1981 Best performance award for safety in the state from directorate of
Factories and boilers, Government of Kerala
1988-89 Best pollution control award under group Heavy Inorganic Industries
In Kerala from Kerala state pollution control board
1989 Award for best performance in safety in India under: chemical Industries
group from national safety council
1989-90 Prize for productivity from Kerala state productivity council
1993 Best performance award for energy conservation in the state of Kerala
under group Chemical and Fertilizers above 3000 KVA from
Government of Kerala
1994-95 Best performance awards for the productivity in the state of Kerala
under group Large Industries from Kerala state productivity council
1998 Best performance award for energy conservation in the state of Kerala
under group Major Industries from energy management centre,
Government of Kerala
1998 Performance award for energy conservation under group Chlora-Alkali
Sector Ministry of power, Government of India
2003 Kerala state energy conservation award in the category of Large Scale
Industries
2005 National Energy conservation award Chlor Alkali Sector
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2008 Pollution Control award from Kerala state Pollution Control Board
ORGANIZATION STRUCTURE
The organizational structure involves arrangement of activities and assignment of personnel to
these to achieve organizational goals. It is a way by which various parts of an organization are
tied together in a coordinate manner and it illustrates the various relationship among various
levels of the hierarchy within the organization as well as horizontal relationship among various
aspects of the organizational operations. As well planned organizational structure results in better
use of resources.
An organizational structure is a mostly hierarchial concept of subordinates are a number of
clustered entitles. The structure of an organization is usually set up in one variety of styles,
dependent on their objectives and ambience organizational structure allows the expressed
allocation of responsibilities for different functions and process to different entities. A good
organizational structure is needed so that:
a. Each individual in the organization is assigned a role , responsibility and necessary
authority. Each person who is assigned to an activity must know his position, his role and
relationship with others.
b. The activities of all individuals are coordinated and integrated into a common pattern in
order to achieve the organizational objective. Organization is needed for the purpose of
integration of diverse activities in a cohesive manner.
c. The optimum use of human skill and efforts is achieved. It helps in smooth operations
and smooth flow, thus avoiding bottlenecks, idle time and idle machine.
The organizational structure of TCC is shown in the figure. The present organizational
structure of the company has proven to be effective in conducting operations at its optimum
level. The staff structure encourages team work and good internal relationship. Unity of
command is maintained throughout the organization.
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ORGANIZATIONAL CHART
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2.3PRODUCT PROFILE
Caustic soda, Chlorine, Hydrochloric acid, Caustic soda flakes and sodium hypochlorite are the
products of the company. Caustic soda, Chlorine and Hydrochloric Acid from the backbone of
chemical industry. These are impotent to the countrys economy very much like steel and
cement. Major products and their production capacity is explained below;
MAJOR PRODUCTS AND PRODUCTION CAPACITY
PRODUCTS PRODUCTION CAPA CITY
(TONES PER ANNUM)
Caustic Soda Lye 57,750
Liquid Chlorine 23760
Commercial Hydrochloric acid 1,27,742
Caustic Soda Flakes 33,000
Sodium Hypochlorite 15,000
TCCs main raw materials are common salt (sodium chloride), electricity and water.
The company requires about 2650 units of electricity and 1.72 tons of raw salt per tones of
caustic soda produced common salt is mainly produced from Kacch in Gujarath and Tamilnadu.
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PRODUCT: 1
CAUSTIC SODA (NaOH)
It is a basic alkali. It is used in the manufacture of products like soap, paper, and
textilesetc. caustic soda lye obtained from membranes cell is a clear colorless, odorless and
soapy liquid. TCC is producing two type of caustic soda lye of concentration 32% and 50%.
USES INDUSTRIES SERVED
A chemical for dissolving out extraneous matter from
Wood for preparing pure cellulose and for the preparationOf alkali cellulose and for the production of viscose
Solution
Rayon & Rayon Pulp
A chemical for preparing pure cellulose by dissolving out
extraneous matter.
Paper, News print & Pulp
As saponification agent Soap
In bleaching, dyeing and mercerizing Textiles
As cleaning agent Heavy chemicals
For refining petroleum fractions Petroleum refining
Reagent for production of various organic chemicals Minerals and rare earth
elements
PRODUCT: 2
CHLORINE (Cl2)
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Chlorine, a co-product obtained in the manufacture of caustic soda is an equally important basic
chemical. It Is a renowned water purifying chemical. It is a greenish yellow gas. Chlorine is sold
after liquefying. Chlorine has got a pungent smell and liquid chlorine is amber in colour.
USES INDUSTRIES SERVED
Producing insecticides (DDT,BH etc)and pesticides Insecticides
Purifying drinking water and sterilizing sewage effluents. Water purification
As a bleaching agent Sugar, paper & pulp, Textiles
For manufacturing PVC and allied co-polymers Plastics
For producing a variety of organic chlorine compounds Fine chemicals
For upgrading titanium contents Mineral processing
PRODUCT: 3
HYDROCHLORIC ACID (HCL)
Hydrochloric acid produced by TCC is of high purity and finds application in number of
chemical industries and it is yellowish green in colour. The HCL produced has concentration 30-
33%.
USES INDUSTRIES
For the production of Ammonium Chloride and in manufacture
of Phosphoric Acid
Fertilizers
A cleaning agent in galvanizing Engineering
For hydrolyzing starch in to sugar Starch industry
In monazite processing for the separation of rare earths as chlorides
From thorium
Minerals processing
PRODUCT: 4
SODIUM HYPOCHOLRITE
Sodium Hypochlorite, commonly known as Soda Bleach, finds its application in bleaching, as a
disinfectant and also in the extraction of rare earth elements. It is a pale yellowish colour liquid.
Soda bleach is the only branded product of TCC. TCC is producing soda bleach under the brand
name Ekoclean .
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\
USES INDUSTRIES SERVED
As a bleaching agent Textiles, pulp and papers
As a germicide and cleaning agent Hospitals
For sterilization Hospitals
PRODUCT: 5
CAUSTIC SODA FLAKESCaustic soda lye is concentrated to 98-99% NaOH and converted to flakes in a continues, Caustic
fusion plant (CCF). It is a white deliquescent solid in flakes form. Caustic soda flakes have also
the concentration 98-99% NaOH.
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CHAPTER 3
DEPARTMENTAL STUDY
DEPARTMENTAL STUDY
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3.1 HRD / TRAINING DEPARTMENT
Department structure
Human resources is considered as the most vital asset of an organization. TCC has a well defined
employee power which helps the organization to perform well in the markets. Human resource
department is headed by manager (HRD). He is responsible only for training and development M
(HRD) id reporting to Assistant General Manager (HR).
MAIN FUNCTIONS OF HR / TRAINING DEPARTMENT
a. Identifying training needs
b. Arrangement requirement training
c. Maintaining the training record
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AGM (HR)
M (HR&W)
DM (CS)
PROAPO
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SCOPE
The procedure covers all aspects of training. Arrange suitable training for employees for
updating skills based on the identified training needs.
Training advisory commitment is responsible for suggesting training requirements of the
various department and disciplines
Formulating training programs on yearly basics.
The committee propose a training calendar every year
Training needs for the years are identified and recorded by the department the head.
The details are handed over to the training department by respective department head. Training
department does compilation of the identified training needs of the employees. Necessary
training programs are arranged by training department to later the identified training needs of the
employees.
Training department organize training programs using internal faculty or engaging faculty from
reputed organization. The training department in consultation with concerned department heads
organizes in house training programs on special requirements. When employees attend training
programs conducted in house. A feedback about the usefulness of the training is obtained and
consolidated. The concerned department had evaluates the feedback from the participants after a
period of 2-3 months to ascertain the effectiveness of the training program.
Employees are also sent for training to other reputed institutors nominations for sending
employees for training in such institutions outside the company are put up for approval of the
appropriate authority as per the guidelines outside programs submits a feed back on the trainee
undergone the training department.
The achievement against annual training calendar is reviewed half yearly by department helps
for the number of programs held, number of employees participated for each programs the
highlights of training effectiveness, feedbacks..etc.
The training department maintains a register on the training program attended by the employees.
Training department maintains the format received from participants after getting it evaluated by
the concern department head regarding the effectiveness of training. The managerial personnel of
the company are imparted training to improve their managerial capabilities at the HRD center of
the company and outside institutes depending upon the needs identified by the head of the
department.
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TCC use both on the job and off the job training methods fo training the employees.
GENERAL TRAINING
In order to provide this type of training, one has to determine what is the trainees growth
potential, up to what level to be done and requires evaluation of his present performance.
NEED BASED TRAINING
Need based training will be done on the basis of determining the level of knowledge and skill
one requires for a job. Next is to find out how many employees have to be given this training. On
the basis of these needs training is given to the employees.
CUSTOMER TRAINING
Customers are given training on handling of chlorine and other products in various situations.
INDUCTION TRAINING
It is the training provided to the newly recruited employees to familiarize them with the
activities, rules and policies of the organization. It is also done to introduce the new employees to
the other employees of the organization.
TECHNOLOGY TRAINING
Company provides advanced training for workers to cope up with the technological changes.
Feedback is obtained from employees and effectiveness of the training program is ascertained
after a period of 2-3 months.
PERSONALITY DEVELOPMENT PROGRAMME
They are conducted on a regular time period for the development of both workers and managers.
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INTERNAL TRAINING
Every month three day training program is held for workers. The workers education center,
under the central labour industry conducts it. These programs are conducted on a contract basis
and are recorded annually 20-25 workers from various sections are selected every month and 4-5
officers from WEC conduct the training programs. The topics covered include personality,
management development, inter personnel relations, impact of globalization effective
communicationetc.
Other in house programs are conducted by agencies like Kerala state productivity council. In
such programs company can decide upon faculties and topics for training. During the installation
of membrane cell plant, officers were sent to Japan for training. So on the job training is
prevalent in all sections of the company.
EXTERNAL TRAINING PROGRAM
These programs are provided for workers conducted mainly inside Kerala and a few numbers
outside Kerala also. The management does not keep aside a budget for training need. On an
average TCC spends more than 11 lakh rupees on the training needs every year.
OBSERVATION OF HRD
HRD department organizes training programs using internal faculty or engineering faculties from
reputed organization. TCC should see to it that training needs of the works, supervisors and
executives are recognized and separate training program should be developed for each groups.
PERSONAL DEPARTMENT
Managers 103
Others 683
Total 786
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FUNCTIONS OF PERSONAL DEPARTMENT
1. Recruitment: through professional and executive employment exchange and P.S.C
2. Manpower planning: ascertaining the number of vacancies
3. Welfare functions: including statutory and non statutory welfare measures.
4. Grievance handling: as per the provisions of Industrial Disputes Act & factories act
5. Maintaining company discipline: as per standing order act
6. Industry relations
7. Public relations
8. Job descriptions (Techniques)
9. Job specifications (Techniques)
10. Job analysis (Techniques)
11. Performance appraisal
12. Training
13. Staffing
14. Formulates and implements personnel
15. Wage and salary administration
16. Filing various returns relating to employees
PROMOTION POLICY
It is divided into two parts.
a. Managerial Promotion Policy:
This is on the basis of a stipulated length of service in the immediate lower grade and it is the
main criterion for promotion. Promotion from workers category to officers grade shall be ordered
only with board resolution and with permission of government. Time bound grade promotions
are considered in the case of lowest tow managerial scales period of 10 years service can be
considered for promotion.
b. Non- Managerial Promotion Policy:
Vacancies are to be filled by line recruitment through PSC and will be filled as per the policy and
procedure lay down through the term of settlement.
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If a prospective employee has the minimum qualification and stipulated service then he is
considered for promotion. If qualified persons are not available for promotion in the respective
section/ department. It is notified on the company board. Candidate with the same grade and
stipulated length of service considered are not found available after test, a lower grade person
with stipulated service can be given double promotion.
WAGE AND SALARY ADMINISTARATION
A sound plan of wage and salary administration seek to establish a fair and equitable
compensation offering similar pay for similar work. Actually the settlement of wage and salary is
done by the accounts department. The trade union / management will decide how much to pay
for each employees and workers regarding his performance.
OVERTIME ALLOWANCE
Wage covered under the Factories Act will be given as overtime wages. According to the
provision contained in the Factories Act and the ruler framed thereafter. The overtime wages for
workers will be two times of effective wages.
SHIFT ALLOWANCE
There are namely 3 shifts. Shift allowances to workers, who are working in shift are
Shift Allowances
8-4 Shift Rs.8/Shift
4-12 Shift Rs.8/Shift
12-8 Shift Rs.12/Shift
WELFARE PROGRAMMES
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Labour welfare measures in India can be classified as statutory and non-statutory. Statutory
welfare comprises those provisions which are binding on employer by law. This relate to certain
essential working conditions and standards of health statutory welfare measures provided are
accident benefit, annual bonus, drinking water , lunch rooms, sitting facilities, storing and drying
facilities ,health facilities and educational allowance. The non-statutory welfare programs
provided voluntarily by employer and housing facilities, medical attendance schemes, group
accident policy, production bonus, voluntary retirement schemes and performance appraisal.
GRIEVANCE REDRESSAL
Grievance Redressal committee is statutory. It is to be legally maintained. Trade unions are
satisfied with the present condition. Hence in TCC Grievance Redressal Committee is not there,
as here exist a good employee-employer relationship. Grievance Redressal committee consists of
an experienced and efficient team of personnel department. And also the moral level of
employee is very good.
TRADE UNION
There is no labour unrest in the company for the past few years. An atmosphere of trust and
mutual understanding is developed between management and labour union. TCC Employees
Association is the only one union in TCC which is recognized.
WORKERS PARTICIPATION IN MANAGEMENT
TCC encourages its workers to take part in the management of the company. The workers are
often consulted through their union while implementing major welfare programs of the company.
In addition to this the workers are also included in some of the committee for taking management
decision, which includes committees like.
a. Canteen Management Committee
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b. Safety committee
c. Grievance committee
d. Tri-Party Committee
e. Provident fund trust
3.2 MATERIALS DEPARTMENT
Department structure
32
DF
AGM
(MT)
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Manager Materials is the head of the department. He is responsible for all functions related to
purchase, stores and inventory control. Materials department is divided into three sections.
1. Purchase section
2. Stores section
3. Inventory Control section
PURCHASE SECTION
Purchase procedure:
- Receiving MPR
- Evaluation of the MPR
- Inviting tender from various organization
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M (P)
DM (P)
ASS. (PF)
M (1C)
M (S1) M (S
2)
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- Evaluation of the tenders and prepare a comparative statement
- Send tenders to the originator of MPR for recommendation
- Issue purchase order as per the recommendation of the originator
Purchase section deals with:
- Purchase of stock items as required by inventory control
- Purchase of maintenance items as required by the maintenance planning and plant
sections.
- Purchasing of raw materials required for the process
- Purchase of bulk consumable for the process
- Purchase of demanded items
- Payment against delivery through bank
STORES SECTION
Store section deals with:
- Maintaining a minimum stock of items required by various departments
- Issuing of stock items required by various departments according to the materials request
(MR).
- Preparation of various reports like:
Receiving report
Inspection reports
Evaluation of MPR for purchase of new items
Preparation of materials code system (10-digit system).
INVENTORY CONTROL SECTION
Inventory control is an essential function of stores department. It helps to reduce cost and
increase profit of the organization. Codification of material is done by manager inventory
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control. For controlling the inventory, certain levels of inventory such as maximum, minimum
and re-order level is prepared. When the stock reaches the re-order level, purchase request is
made.
INVENTORY CONTROL
The purpose of inventory control is to avoid surplus and security of materials. The inventories
items are classified based on value contributed by each items depending on the cost of and
turnover of materials.
OBJECTIVES OF INVENTORY CONTROL
- Avoid unwanted pilling up of inventory
- Material identification to avoid duplication
- To maintain records
- To dispose scrapped items
- To determine which and how much to replenish
FUNCTIONS OF INVENTORY CONTROL
Maintaining a minimum stock of items required by various departments. Preparations of various
reports regarding inventory such as:
Receiving reports
Inventory ledger
Inspection report
Evaluation of MPR
Preparation of material code system to verify items and for easy handling
Fix various levels such as minimum level, maximum level, re-order level,damages level etc. of each items.
Calculate and minimize lead time
Separate materials into Indian/import
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3.3 OPEARATIONS DEPARTMENT
Department structure
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GMT
AGM (OP)
M ( PL1) M (PL
2)
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Operations department carries out the manufacturing of all the products. The company carries
out continuous productions and hence this department plays a very crucial role in TCC.
This department is headed by Assistant General Manager Operations who is reporting to General
Manager Technical.
DUTIES & RESPONSIBILITIES OF ASSISTANT GENETAL MANAGER
OPERATIONS:
Head of the operations department
He fixes the monthly target of the product based on the market requirement
He is responsible for modification in the production process and responsible for the
affluent discharge
He is the designated emergency controller during any hazardous incident of leakage &
emission of toxic gasses/ fluid etc.
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DM (PR1
)DM (P
R2)
SE SE
PE PE
Ex. Tr. Ex. Tr.
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DUTIES & RESPONSIBILITIES OF PLANT MANAGER
Custodian of plant
He will plan production activities to meet the production of target set by the AGM (OP).
He is responsible for the material consumption
He plans the shutdown activities and carries out maintenance work of the plant
He co-ordinates the operational functions with the manager of other departments for the
smooth functioning of the plant.
OBJECTIVES OF OPERATIONS DEPARTMENT
Maximize production confirming to production specification
Optimizing the consumption of electricity and purification of chemicals
Maximize the production overheads
Maximize the availability of electrolysis for operations
THE OVERALL PRODUCTION CAPACITY OF TCC
PRODUCTION CAPACITY
Caustic Soda Lye 175 TDP
Liquid Chlorine 72 TDPCommercial HCL 387 TDP
Soda Bleach 45 TDP
Caustic Soda Flakes 100 TDP
PLANTS IN TCC
There are three plants involved in the electrolytic production process of the company.
1. AGC Plant This plant is designed by ASAHII GLASS COMPANY LIMITED,
TOKYO, JAPAN. The plant was commissioned on 29th may 1997. The products
are Caustic Soda , commercial Hydrocloric Acid, liquid Chlorine and Soda
bleach. The plant consists of 20 electrolyzes. The plant has 125 TPD Caustic
Soda production capacities.
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2. UHDE 1 Plant The plant is designed by UHDE, Germany. The plant was
commissioned in 2005. The plant has a production capacity of 25 TPD of Caustic Soda. It
consists of one electrolyze with 54 elements.
3. UHDE 2 Plant This plant is also designed by UHDE, Germany. The plant was
commissioned in 2006. The plant has a production capacity of 25 TPD of Caustic Soda. It
consists of one electrolyze with 54 elements.
RAW MATERIALS USED
Raw materials used in the production process in TCC are
1. Common Salt (raw salt)
2. Electricity
3. Water
TECHNOLOGY USED FOR PRODUCTION
The technology used by TCC is Membrane Cell Technology which is environment friendly and
energy efficient technology.
PROCESS FOLLOWED
The process followed in production by TCC is electrolysis of Brine.
PROCESS DESCRIPTION
Brine (solution of raw salt & water) saturation & purification process are common for AGC,
UHDE 1 and UHDE 2 plants.
STAYS IN THE PRODUCTION PROCESS
1. Brine saturation and primary purification Sodium Chloride or row salt is fed into the
saturator using the bucket elevator, where it set mixed with the Chlorine decomposed,
depleted Brine. This saturated Brine from the saturator goes to precipitation tanks A & B and
a mixer tank where Barium Carbonate Soda Ash and Caustic Soda are added respectively to
remove Sulphates, Calcium and Magnesium. Impurities as precipitates.the Brine along with
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the precipitates then goes to the clarifier where 90% of the precepts are allowed to settle. The
clarified Brine is passed through Anthracite filters where the remaining 10% precepts are
separated.
HCL is added to the filtered Brine tank to convert impurities to ionic form. Brine is to be
admitted to the secondary purification system only after the desired purity level is
attained.
2. Secondary brine purification The secondary Brine purification system consists of our ion
exchange filters. The primary purified Brine is passed through the Ion exchange filters where
it undergoes Ion exchange process. Ion exchange materials are insoluble acids & bases,
which when converted to salt remain insoluble.
These ion exchange materials are used in columns in which the solutions containing ionic
impurities like Calcium and Magnesium are in contact with the resin bed. The saturated
resin is then regenerated to its original state by acid alkali solution.
3. Electrolysis The secondary purified Brine is passed through a heat exchange, fed to Brine
head tank and is admitted to the anode compartments of the electrolysis. Dematerialized
water is also admitted to the cathode compartment of the electrolysis. Direct current (DC)
supply is connected to the anode and cathode. During electrolysis Caustic Soda Lye is
produced at cathode which is 32% concentration. Hydrogen gas is also formed at the cathode
chamber. Chlorine is formed in the anode where the depleted Brine solution comes out.
Caustic Soda is pumped into storage tank and Hydrogen and Chlorine gas goes to their
respective treatment section.
4. Chlorine treatment & liquefaction Chlorine treatment and liquefaction involves cooling,
washing filtration, drying, compression liquefaction, storage and liquid Chlorine filling in the
cylinders, the Chlorine from anode chamber of the electrolysis is first cooled at 30 degree
celcious with the cooling tower water. Final traces of salt is removed by using a wet Chlorine
filter, it is then again cooked using chilled water. After this the Chlorine gas is divided into
two streams for the HCL synthesis and for liquefying. The Chlorine for liquefaction is dried
using 98% Hydrochloric acid in drying tower. The dried Chlorine is compressed using acid
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ring compressors. The compressed Chlorine gas turns into liquid Chlorine storage tanks.
Chlorine for the HCL synthesis unit is fed by using chlorine blower.
5. H2 treatment and HCL analysis Hydrogen gas from the electrolyser is washed with water
in washing chamber, cooled using tower water and admitted directly to Hydrogen blower,
after separating the condensate. The Hydrogen gas is used for the HCL synthesis and also as
a fuel in the CCF plant. Hydrogen for HCL synthesis is fed to the oven using Hydrogen
blowers. Here it is burned in the presence of Chlorine. The resulting HCL gas is absorbed in
the water flowing down the oven to produce 31% commercial HCL gas.
6. Continuous Caustic fusion It is done in CCF (continuous caustic fusion) plant. CCF plant
is mainly for concentrating 32% NaOH lye to 50% NaOH lye and then to 98%-99% NaOH
melts which is converted as flakes. The 32% NaOH lye is stored in the main storage tank, as
a part of which goes for sale. The remaining part of 32% lye is passed through three
evaporators Ev1, Ev2, Ev3.
In the first evaporator the Caustic Soda lye is heated using vapours generated in Ev2 and
Ev3.the steam generated in Ev1 is then drawn by a vaccum pump through a condenser
and thus Ev1 is working under vaccum and at 70-80 degree celcious. The outlet from Ev1
is 40% Caustic Soda lye which is passed through Ev2 where it is evaporated to 50%
Caustic Soda lye using 9 kg/-cm2 steam from boiler. A portion of 50% Caustic Soda lye
cooled and sold. The remaining portion of 50% Caustic Soda lye is pumped to Ev3 where
it is heated using heat transfer salt which is a mixture of 53% Potassium Nitrate, 40%
Sodium Nitrate and 7% Sodium Nitrate. In Ev3 the 50% Caustic Soda lye is concentrated
to 98%-99% Caustic Soda melt which is converted as Caustic Soda flakes in a flakers
drum.
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7. Soda Bleach preparation Excess of waste Chlorine cant be disposed as a waste gas. But
it has to be absorbed in dilute Caustic Soda lye to produce Soda bleach. Thus the Soda bleach
plant serves also as a pollution control system.
A part of 32% Caustic Soda lye, chlorine is used for the preparation of Soda bleach. The
excess Chlorine at the time of plant shutdown or startup and also from cylinder filling station
goes for Soda bleach preparation, 32% Caustic soda lye is diluted using de-mineralized
water. The solution is passed through two absorbing towers, where it reacts with Chlorine gas
so as to produce Soda bleach.
3.4 TECHNICAL DEPARTMENT
Department structure
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GMT
DGM (TS)
AGM (TS)
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There are two main sections in this department:
1. The Technical Service section
The technical service department is concern with the monitoring of production process. Thisincludes making a comparative analysis if any deviations are found.
Reports are maintained on daily as well as monthly basis and internal as well as
external basis. The reports are sent to all other departments.
I. Daily report includes the following:
Daily production details
Material consumption details
Sales
Stock
Power consumption
Over time reporting etc.
II. Monthly internal reports include the following:
Production process report
Material balance
Chlorine utilization
Raw salt analysis etc.
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III. Monthly external report includes reports to various Government
department and other agencies, production calculation and reporting.
Computerization & IT development
All functional areas are fully computerized. That is function wise, all functions are fully
computerized. But in depth wise TCC is trying to increase the depth of computerization. The
software in use is clipper and paradox. The server configuration is IBM X 220 and the server
capacity is 18GB hard disk running on Novel 4.11 operating system. The server class machines
are P3, 1 GHz, 128 MB RAM, 18 GB hard disk plan to install Oracle based software for all the
departments. Presently there are two Local Area Networks (LAN). One pertaining to financial
data which is called financial package system and the other related to the materials package
system and the other related to the materials managements, which is the materials management
system.
2. Safety & Pollution control system
The safety policy of the company states that:
TCC is committed to provide every one of its employees & the related public an accident
free and healthy environment in its efforts to manufacture high quality products with all
stationary requirements in this regard.
The company will provide a work environment in which identified hazards & controlledif eliminations not feasible and will provide personal protection requirements like gloves,
file mask welding shield, safety shoes, helmets, safety belt, skin protective ointments
etc .whenever necessary.
Accident prevention is the direct responsibility of the line management and will be an
important criterion for performance appraisal. Line management will ensure that all
safety measures are incorporated in the operating and maintenance procedure as well as
in any process technology changes in the plant.
The company will ensure that health & safety aspects are given due consideration in
decision regarding purchase of plant equipments machinery & materials.
All contract job will be carried only through the laid down procedures with appropriate
supervision.
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The company will carry out safety audits, risk assessment studies, emergency mock
drills, periodic assessment health of its employees as well as status of environment &
implement remedial measures.
Employee, consumers & public awareness where necessary, will be imparted with the
required education, training & retraining safety and health aspects related to the process
and products.
Contractors, sub-contractors, workers, transports & visitors entering the factory shall be
required to observe health and safety practices of the company in all their activities.
The company will include a resume of its health and safety performance in its annual
reports.
FUNCTIONS OF TECHNICAL SERVICE DEPARTMENT
1. Deviation analysis of plant operating parameters.
2. Collection and computation of production details, raw materials, input output details.
3. Downtime or failure analysis of plant and equipment and providing technical advice.
4. Preparation of monthly raw materials and input output details.5. Give suggestions on corrective action to avoid downtime of equipment.
6. De bottle necking to improve production and efficiency of operation.
7. Organizing energy audit and implementation of energy saving schemes.
8. Preparation of schemes for improvements or modification of process, plant and
machinery.
9. Vetting of proposal originated by other department.
10. Inspecting or testing of equipment for the plant.
11. Study and report on process upset accidents if any etc.
12. Any other job specifically assigned by management.
POLLUTION CONTROL
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In line with this, the company is carrying out various schemes including extensive pollution
control measures, on site emergency planning, training of employees and customers on accident
prevention and safe handling of chemicals. The company aims to minimize all adverse
environmental and health. Impact arising out of its operation, converse all kinds of resources and
to obey all statutory and legal regulation. Acidic and alkaline effluent steams are collected in
pits. If the Sodium Chloride content in the acidic stream is within limit. It is used in
Hydrochloric acid. The remaining effluent are mixed and neutralized. The PH is corrected to 7
with extra acid/alkali addition. It is then fed to the lagoon where better homogenization of
effluent takes place. Also Sodium Bisulpahte solution is added to the Chlorine content. Thus the
effluent let out to the river is neutral and free of Chlorine content.
Also the Chlorine gas during plant start-up and shutdown tripping of Chlorine compressor, from
Chlorine cylinder filling station is collected and absorbed in dilute Caustic Soda lye to produce
Soda Bleach which is sold to the consumers.
3.5 ENGINEERING DEPARTMENT
Department structure
46
GMT
AGM(E)
SE SE (M)
CE
(MP)
DMMPEx. Tr. Ex. Tr.
CE (M)
DM
CE
(U&S)
DMU&S
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The Engineering department has been divided into four sections.
1. Electrical Department
2. Mechanical Department
3. Instrument Department
4. Civil Department
ELECTRICAL DEPARTMENT
There are two functions for this section. They are as follows:
a) OPERATIONS
Electrical supply is received from KSEB through substations. Direct Current (DC)
is needed for electrolysis and Alternating Current (AC) is converted into DC in
rectifier plants. AC is used for auxiliary purpose. The following are the function
of the operational section.
Ensuring uninterrupted power supply
Man management.
b) MAINTENANCE
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This section is headed by chief engineer in planning and implementing on
engineering works. This section also provides assistance to project development
of new project.
MECHANICAL DEPARTMENT
Mechanical section found to be the back bone of TCC. All types of annual
maintenance is handled by this section and look forward to maintain the
machinery in the best possible manner and ensure healthy and sound flow of
workers within the organization.
Following are some of the objectives:
To ensure all equipment engaged in production are
in good condition
To cut down tine of critical equipments
To reduce cost due to inefficiency in equipment
handling.
INSTRUMENTATION DEPARTMENT
The main functions of this section are as follows:
Plant processing operation and control of plant and equipment.
Keeping record for it
The maintenance of up keep of equipments.
CIVIL DEPARTMENT
Civil section is an independent department headed by chief engineer. The main
role of this section is the construction of the building and other premises of the company. It is
also engaged with the social task to ensure the smooth flow of industrials activities.
The main functions of this section are as follows: Maintenance of existing building.
Painting and insulation
Tender issue for civil workers.
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3.6 PROJECT AND SYSTEMS DEPARTMENT
Department structure
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GMT
DGM (PJ)
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The main function of the projects and systems department is capacity addition and
implementation of new technologies. It is an independent unit with a different function. Their
main functions to prepare feasibility reports and to invite tenders for execution of new projects.
MAIN FUNCTIONS OF PROJECT DEPARTMENT
Involves planning, feasibility study and implementation of ne technologies
Preparation of detailed reports
Preparation of feasibility reports
Evaluation of tenders
Invitation of tenders through advertisements
Agreements
Execution
Hand over the new projects to operations department
FUNCTIONS OF SYSTEMS DEPARTMENT
Implementation of new ERP system
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AGM (R)
CE (PJ1) CE (PJ
2)
AGM (S
& PJ)
DM (SY)
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Maintenance of website
Maintenance of all computers
Maintenance of all printers and peripherals
Maintenance of all networking systems Management of broad band and internet connections
\
3.7 SECRETARY AND INTERNAL AUDIT DEPARTMENT
Department structure
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Memorandum and articles of association, certificate of incorporation and other statutory registers
under the Companies Act 1956 are maintained in the companies registered office at
Udyogamandal.
DUTIES AND RESPONSIBILITIES OF THE COM APNY SECRETARY
Conducting board meeting for the organization The legal interpretation of the profit and loss statement and balance sheet
Filing returns with registrar of companies
Drafting agreements with the financial institutions under the Companies Act
Conducting the annual general meeting and extra ordinary general meeting if required
Gratitude function of the organization
Providing public information under right to Information Act, 2005
Laison with Registrar of companies, LIC officials and other government and private
agencies.
MANAGEMENT OF THE COMPANY
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CS & IA
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A board of directors consisting of one managing director, director finance and three other parttime directors of the company.Company has seven share holders. They are Government of Kerala, FACT, KSIDC,SHL Trading Ltd and two independent nominees from Government of Kerala.
INTERNAL AUDITThe internal audit system in the company has been established since long. The Internal Auditorreports directly to MD. The staff of the department includes one stock verifier and two seniorassistants.
FUNCTIONS
Pre audit of all purchases and contract files
Verification of sales orders and related records
Verification of payrolls and wage salary of workers, staff and officers
Increment proposal of management staff, salary fixation etc
Verification of various vouchers, journals, ledgers, and other records of financial and cost
accounts sections. Operational audit performance, audit, performance, management audit etc if necessary
3.8 MARKETING DEPARTMENT
Department Structure
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AGM (M)
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Marketing department in TCC is product centered with separate personnel entrusted to each
product. TCC is the only chlor-alkali company in Kerala. So firm has more or less monopolistic
market in Kerala. TCC gives primary importance towards satisfaction of its customers.
Marketing department consist of an office section and an issue section. All documentation work
comes under office section and all works relating to sales comes under the issue section.
TCC will adopt marketing strategy according to product nature, market situation,
demand of the product etc. TCC gained about 80% of the market share in Kerala.
MAIN FUNCTIONS OF OFFICE SECTION
Preparation of sales quotation, letters, amendments etc, maintenance of sales officers
register books and other necessary information.
Preparation of sales budget, sales plan, monthly allotment etc, correspondence with
parties and follow up of routine and regular matters.
Preparation of sales order, dispatch and delivery notes etc
Upkeep of all files up to date
MAIN FUNCTIONS OF ISSUE SECTION
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DM (M)
ASO
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Preparation of schedule of dispatch and actual dispatch
Execution of sales offers
Advising parties about the dispatch effected
Maintenance of daily stock registers
THE MARKETING MIX
The four Ps in the marketing mix are as follows:
1. Product
Products of TCC include caustic soda, chlorine, hydrochloric acid & sodium
hypochlorite. The industries served are soap, insecticides, pharmaceuticals, chemicals,
mineral processing, disinfectant, textiles, rubber, water purification and petroleum. The only
branded product is soda bleach and the brand name is EKOCLEAN.
2. Price
The company has adopted a differential pricing policy. The price is fixed through
negotiation for long term contracts. For small customers, price is fixed from time to time. An
open body named Alkali Manufactures Association of India (AMAI) fixes selling price for a
particular period. Price of the product is fixed by adding the production costs, excise duty,
VAT & freight charges. Tenders are issued to the customers with a price quoted and if it
turns to be a lowest bid and satisfies the customers the sales are done.The major markets are Kerala, Karnataka and Tamil Nadu. Except caustic soda, all
other products are sold in South India. Long term contracts are being entered with customers.
Price concessions are given to long distance customers taking freight elements into account
for transportation of the product, raw materials and also all other logistic purpose. Company
has given contracts to outside agencies. The contract is placed for each material and that is
done in an annual basis.
3. Place
Channels include direct selling to customers for caustic soda there are some agencies
outside Kerala for marketing the products. The entire marketing is done at the company
headquarters at Udyogamandal and there are no other marketing offices. All payments take
place through SBT (State Bank of Travancore). Place is concerned with various methods of
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transporting and storing goods and then marking them available for the customer. Getting the
right product to the right place at the right time involves the distribution system.
4. Promotion
All the products are industrial products. It lacks a good promotion policy to
withstand competition from private sector. The customers are aware of the existence of the
company and when and how to get the product. Hence there are no much promotional
activities. Marketing factor is price which depends upon the national and international price.
The company does advertise in some academic and trade journals like chemical magazine
etc. The promotional activities are done also through the company website
www.tcckerala.com.
THE COMPETITORS
There are about 40 companies in India, which are producing the same kind of products that of
TCC. In the 40 companies, 12 companies are in South India. All Chemical Industries are in
private sector except TCC.
1. Chemfab Alkalies Ltd, Pondicherry
2. Andhra Sugar Ltd
3. DCW Ltd, Mettur
4. Kothari Petro Chemicals Ltd
5. Tamil Nadu Petro Products Ltd
6. Southern Petrochemical Industry Corporation, Chennai
7. Sree Royal Seema Alkalies and Allied Chemicals
8. Chemplast, Mettur
9. Tuticurin Alkali Chemicals and Fertilizers
10. Tata Chemicals, Gujarat
MAJOR CUSTOMERS
1. Hindustan Lever Ltd, Cochin, Kerala
2. Indian Rare Earths Ltd, Udyogamandal, Kerala
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3. Hindustan Newsprint Ltd, Kottayam, Kerala
4. Hindustan Organic Chemicals Ltd, Ambalamugal
5. Steel Authority of India Ltd
6. Mysore Paper Mills Ltd, Karnataka
7. Kerala Minerals and Metals Ltd, Kollam
8. Travancore Titanium Products Ltd, TVM, Kerala
9. FACT, Kerala
10. Kerala Water Authority, TVM, Kerala
ADVERTISING
Advertising is done in weekly journals, magazines and news papers.
MARKETING STRATEGY
Organization has adopted a strategy for their product nature, market situation, demand
of the product, competition etc. In Kerala TCC is facing an oligopoly. TCC gained about 80% of
the total market share. Market share is based on production. 60% of the goods produced are sold
outside Kerala and 40% within the state.
ACTIVITIES OF MARKETING DEPARTMENT
Whenever a company places an advertisement regarding the requirement of chemicals like
caustic soda lye or flakes with the specification for the chemical payment terms, quantity
required, validity period, the companies that are ready to supply (like TCC) will send tenders to
the required company. This is also known as tender document. In a tender document mainly 2
documents are specified:
a. Technical Bid
This means specification about the quality aspect of the product, how much quantity can
be given within a period as specified by the customer company. These terms are well
explained in the technical bid.
b. Price Bid
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This is a part of the tender document which specifies the basic prices of the company
products. The document rate is given for bulk purchasers, payment terms are also explained.
Along with this offer is placed the customer company which will be attracted with
Earnest Money Deposit (EMD). This deposit is for the purpose of assuring the customer
company that if they accept the TCC offer, certainly the product will be supplied to the
customer. The deposit will be refunded by the customer company after the purchase is made.
The EMD is only attached in case of bulk purchase.
After accepting the offer placed by TCC, the customer company will place a purchase
order. The purchase order explains the details of the product, quantity, basic price... Etc.
Sales order is placed and will be verified by Deputy Marketing Manager. He makes
arrangement in respect of supplying the product to the customer. The acceptance offer is
usually by selecting the lowest price. From the collected tenders if price by TCC is higher
than any other parties, those parties will be done so as to bring the price lower. If the price is
not lowered, the offer will be rejected
3.9 FINANCE DEPARTMENT
Department structure
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MD
FC
DFC
DM (F)
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Deputy finance controller is having the overall responsibility of the finance department. Which
include co-ordination of audit, Board meeting and company taxation. Deputy finance controller
co-ordinates the function of bil passing establishment section, debt collection, cash and bank.
The internal audit system is carried out in the company by the initial audit section headed by
the chartered accountant. Regular reports are given to the department heads of taking corrective
actions where necessary, which is submitted to the MD.
The company has an effective budgetary control system. The budgets are reviewed,
deviations analyzed and necessary corrective actions is initiated. Important variations relating to
raw materials, furnance oil, electricity etc are analyzed and furnished to various levels of
management for corrective actions. The key budget factor is the power availability which is
estimated and a rough picture of anticipated power shortage is drawn up.
The main function of bill section is passing of bills, which is done after checking quotation,
order and production receives/ work achieved. Bills are passed after seeing that materials
received is in conformity with the purchase order.
Finance is considered as the valid part of any business organization. It is the function which
controls the procurement of allocation of funds in the business operations. In TCC a well
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DFM1 DFM2DFM3 DFM4
SAO
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developed and effective functional department is functioning. Deputy finance is the head of the
finance department.
THE MAIN FUNCTIONS OF FINANCE DEPARTMENT
Generation of funds and utilization of funds
Treasury operations
Financial book keeping and finalization
Cost recording
Sales accounting
Bill passing
Budgeting and financial control
Preparation of wages bills
Preparation of invoice
SAO confidential is exporting to DFM. Preparation of balance sheet is done in
accounting section. TCC has an exclusive PF trust for their employees. The company
gives money to the trust. Trust invests this properly. Retirement benefit is issued from
here itself. The companys liability towards gratuity to employees is covered by group
gratuity scheme with the LIC of India.
SOURCES OF FUNDS
To produce and sell there must be adequate finance for raw-material and other supplies
and also to meet day to day expenditure of the enterprise. The company raise funds by
means of equity funds and borrowed funds. Thwe share capital include authorized,
issued, subscribed and paid up capital. Loans are obtained as term loans from SBI, IOB,
UBI, IDBI and material loans from Government of Kerala.
ANNUAL TURN OVER OF COMPANY
Year Amount (Lakhs)
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2002-2003 7421
2003-2004 9123
2004-2005 8869
2005-2006 10877
2006-2007 12321
2007-2008 9390
2008-2009 12063
SIGNIFICANT ACCOUNT POLICY
a. All revenue cost, assets, and liabilities are on the accrual basis, exeptv customs
duty.
b. Sales include excise duty and sales tax
c. Inventories valuation
- Stock in trade: Caustic soda lye and flakes are valued at works cost or net
realizable value, whichever is lower. By products are valued at net sales
realization during the year.
- Raw materials, mercury, packaging materials, fuel oil stores and spares
are valued at weighted average cost.
- Tools and equipments are shown at revalued cost.
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d. All fixed assets are carried at cost less depreciation. Interest on loan during the
period is added to the cost of fixed assets.
e. Depreciation
- For plant and machinery depreciation is calculated on a straight line basis
specified in schedule XIV to the companys Act, except for the membrane
whose life is only 4 years.
- For buildings, service equipments, furniture, fixture, office equipments,
electrical installation etc depreciation is calculated on a written down
value basis at the rates specified in the Act.
f. In foreign exchange transaction all assets and liabilities are translated at the
relevant exchange rates at the end of the financial year.
g. Sales of goods are recognized on accrual basis.
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CHAPTER 4
SWOT ANALYSIS
SWOT ANALYSIS
STRENGTHOnly Chlor alkali unit in the state
Good record of physical and financial performance in the past.
Qualified work force, brilliant engineers, managers and skilled workers.
No strike reported for the last few years .
Companys products are basic chemicals and are considered to be the building
blocks of chemical industry.
The company has 80% market share for its products in Kerala.
The company is a feeding industry to other companies.
Excellent management labour relation.
Strategic location with no other competitors around at present.
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Availability of water in abundance as TCC is situated in the banks of river
Periyar.
Excellent transport facilities and proximity to national highway, railway line ,
seaport, and airports as well.
Companys products are basic chemicals and are considered to be the building
blocks of chemical industry.
TCC is a pioneer in the chlor alkali market and has created reliability credibility
among the customers.
WEAKNESS
TCC is a public undertaking. The major decisions of the company have to be approved bythe government which delays the implementations of plans and there by causing organizational
inflexibility. The major weaknesses are;
Lack of profit motive leads to poor performance
Employee cost is high compared to other firms (competitors)
Large consumption of energy , 60% of manufacturing cost is electricity
Raw salt is available in vicinity so transportation cost is very high
OPPORTUNITIES
New project of synthetic rutile plant. Rutile companies are reaping big profit in the state
due to the availability of raw material within the state. There is a high price in the
international market for rutile and related products.
Economic development of the country may results in higher demand for the product
especially for chlorine in near future
Proposal for a hydel project will benefit TCC and the power so obtained can be utilized
for running the plants of TCC. Thus reducing the cost incurred on electricity.
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THREATS
Competition from foreign countries
High cost of production
Higher in price of electricity
The infra structure of the company is obsolete compared to others
The import duty of central government is not fair and it caused periodic fluctuations in
the price of the companys product.
CHAPTER 5
FINDINGS
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AND
SUGGESTIONS
FINDINGS
The major type of customer deal with TCC is pharmaceuticals, soap industries,
insecticides, pesticides, paper industries and rayon industries.
No strikes have reported for the last 10 years. It shows the relationship of workers and
management as a good one.
Pricing policy of TCC is an average one, according to the standards.
The company has a flexible credit policy. They give credit facility up to 30-45 days and
they are getting credit of 60 days from suppliers.
New technology of membrane cell has the advantage of pollution free environment and
also if bring about 30% reduction in electric power requirements.
No major environment pollution has been reported for the past 50% years of operation.
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The strength of TCC is the quality of their products services and the delivery.
Location preference, reference and quality are the major criteria for selecting
manufacture.
The customer have reported no rejection of TCC product which shows the product
satisfactions.
The company is depending heavily on electricity and around 60%of their product price is
for this.
SUGGESTIONS
The company must give some motivation to the employee in order to increase the
production..
The company must take necessary steps to maintain the ratios at standard level.
Improve the first aid facilities by providing free medicine and treatment .
The company must activate the research and development cell in order to have new
invention in this field.
The company should conduct market research to find the movement of the products
and to identify potential customers.
One of the main raw materials is electricity which is an important factor of production
of the company. So it better to go for a mini power plant of its own.
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CONCLUSION
Travancore Cochin Chemicals Ltd, Udyogamandal is a state owned undertaking
engaged in manufacture of basic chemicals like caustic soda, HCL, Chlorine, Sodium
Hyptochlorine etc. These are required by various industries within and outside the state.
TCCs products have national reputation for quality and the company gives high priority to
customer satisfaction. It is an organic chemical company. TCC takes vital steps at the right
time to make innovations in technological up gradations as well as organizational
improvements, which helped it to face problems quite effectively and efficiently.
Till 1995- 1996, company had recorded a steady growth in production as well as in sales.
After that period even through the sales remain on an average. The company could not make
any profits. This was due to the implementation of membrane cell technology in place of
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mercury cell technology. The higher electric charges compared with other states also affected
the profits of the company. TCC enjoys a lions share of the market in kerala and would
continue to do so.
The company started the salt up-gradation plant in 1998 which helps reduction in
consumption of chemicals The Research and Development laboratory of the company helps
in conducting a research with a new technical development. Several innovation and
modernization schemes were implemented to achieve energy conservation, environment
control and economy in inputs.
As per the study conducted in the organization, the capacity of production is increasing
and the company is moving in to more profitable stages. The days I spent at TCC and created
a concrete impression in the development of my career.
TCC is one of the leading Caustic Soda producing companies in India. I wish a great
technical development and a prosperous future for TCC.
ABBREVATIONS
MD - MANAGING DIRECTOR
GMT GENERAL MANAGER TECHNICAL
DF DIRECTOR FINANCE
DGM (PJ) DEPUTY GENERAL MANAGER PROJECTS
AGM (HR) ASSISTANT GENERAL MANAGER HUMAN RESOURCE
AGM (MT) ASSISTANT GENERAL MANAGER MATERIALS
AGM (M) - ASSISTANT GENERAL MANAGER MARKETTING
AGM ( R ) - ASSISTANT GENERAL MANAGER RESEARCH
AGM(S & PJ) - ASSISTANT GENERAL MANAGER SYSTEMS AND PROJECTS
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AGM (CP) - ASSISTANT GENERAL MANAGER CAPACITY PLANNING
AGM (TS) - ASSISTANT GENERAL MANAGER TECHNICAL SERVICE
AGM (E&I) - ASSISTANT GENERAL MANAGER ELECTRICAL & INSTRUMENTATION
AGM (E ) - ASSISTANT GENERAL MANAGER ENGINEERING
AGM (OP) - ASSISTANT GENERAL MANAGER OPERATIONS
M (HR & W) MANAGER HUMAN RESOURCE & WELFARE
M ( P ) MANAGER PURCHASE
M (S1) - MANAGER STORE 1
M (S2) MANAGER STORE 2
M (IC) MANAGER INVENTROY CONTROL
SM SALES MANAGER
DM (CS) DEPUTY MANAGER CATERING SERVICE
DM (P) DEPUTY MANAGER PURCHASE
DM (M) DEPUTY MANAGER MARKETING
DM (SY) SEPUTY MANAGER SYSTEMS
CE (PJ1) CHIEF ENGINEER PROJECT 1
CE (PJ2) CHIEF ENGINEER PROJECT 2
APO ASSISTANT PERSONAL OFFICER
PRO PUBLIC RELATIONS OFFICER
ASO ASSISTANT SALES OFFICER
M (T & D) MANAGER TRAINING AND DEVELOPMENT
CE (TS) CHIEF ENGINEER TECHNICAL SERVICE
CE (FS) CHIEF ENGINEER FIRE AND SAFETY
CE (E &MO) CHIEF ENGINEER ELECTRICAL AND MODERNIZATION
CE (E&M) CHIEF ENGINEER ELECTRICAL AND MAINTENANCE
CE ( I ) CHIEF ENGINEER INSTRUMENTATION
CE (MP) CHIEF ENGINEER MANAGING PLANT
M (PL1) MANGER PLANT 1
M (PL2) MANAGER PLANT 2
DM (E&M) DEPUTY MANAGER ELECTRICAL AND MAINTENANCE
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DM (E&MO) DEPUTY MANAGER ELECTRICAL AND MODERNIZATION
DM ( I ) DEPUTY MANAGER INSTRUMENTATION
DM (PJ1) DEPUTY MANAGER PROJECT 1
DM (PJ2) DEPUTY MANAGE PROJECT 2
DM (MP) DEPUTY MANAGER MANAGING PLANT
DM (M) DEPUTY MANAGER MARKETING
DM (U&S) DEPUTY MANAGER UTILITY AND SERVICE
SE SENIOR ENGINEER
PE PLANT ENGINEER
ASS (PE) ASSISTANT PLANT ENGINEER
CS&IA CO-SECRETARY AND INTERNAL AUDITOR
EX.TR. EXECUTIVE TRAINEES
BIBLIOGRAPHY
Human resource management - Shashi. K.Gupta & Rosy Joshi
Marketing management - Philip Kotler
Organizational behavior - Ashwathapa
www.tccKerala.com
Annual reports of TCC Ltd.
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