cmpy dcw
TRANSCRIPT
INDUSTRIAL STUDY ON DARANGADARA CHEMICAL
WORKS
INDUSTRY BACKGROUND
The chemical industry in one of the oldest domestic industries in India, contributing significantly
to both the industrial and economic growth of the country since it achieved independent in 1947.
The chemical industry comprises the companies that produce industrial chemicals. It is central to
modern world economy, converting raw materials into more than 70,000 different products.
Chemical industries in India are worth US$ 28 billion and these industries are responsible for
12.5% of the country's industrial production. Chemical industries are referred as keystone
industries because of the way the rest of the manufacturing sectors relay only chemicals. The
largest corporate producers worldwide, with plants in numerous countries, are BASF, Dow,
Degussa, Eastman Chemical Company, Shell, Bayer, INEOS, ExxonMobil, DuPont, SABIC and
Mitsubishi, along with thousands of smaller firms.
History of chemical industry
Since the Industrial Revolution, we have had many examples of how new discoveries have
translated into greater economic growth for the world. Before that era, there was no real concept
of growth, except by conquest, plunder, or exploration. Most people understood that they were
born with a particular status in life. It is no coincidence that Adam Smith's The Wealth of
Nations appeared in 1776, at the beginning of the modern era, and we are still indebted to him
for his insight into an economic system that could accommodate and build on this revolution. We
must not lose sight of the miracle that growth rates since then have raised remarkably, even
though the world's population was growing rapidly. Increasingly, jobs have been found for this
growing population at an amazing rate, albeit unevenly in different countries.
Although the early inventions of the Industrial Revolution were not scientific but largely
empirical technology, later on, and especially in the twentieth century, science has been essential
to modern technologically based industry, and thus crucial to the great economic growth
described earlier. The science of chemistry originated in the eighteenth century. The first truly
1
scientific chemist was Antoine Lavoisier, who systematically measured and studied chemical
reactions. Unfortunately, he was guillotined by that other Revolution in 1794, not because of his
chemical knowledge, but because he was a tax collector for the Ancien Regime in order to earn a
living. It was not the only time politics and science have collided-think of Galileo and the
Inquisition, and Lysenko in the Soviet Union. In fact, history records that Robespierre and Hitler,
at different times and in different circumstances, both said in effect that their revolution had no
need of scientists!
In the 1830s and 1840s, the British had the world's dominant chemical industry, which was
focused on production of inorganic chemicals. Inorganic compounds are those taken from the
earth, such as salt and minerals, and processed into useful products employed directly or used in
further processing. One leading set of products is the alkalis, such as lime, soda ash, and caustic
soda, used extensively in textiles, glass making, fertilizers, etc.; another includes acids such as
sulfuric and nitric, which are often used in tanning, textiles, dyeing, and a myriad other
applications. Alkalis and sulfuric acid produced in large quantities are commonly referred to as
heavy chemicals. Currently, organic chemicals such as ethylene, benzene, and propylene, which
are produced in large quantities, are more typical examples of heavy chemicals.
The development during the 1940s and 1950s of a group of independent developers and sellers
of process technology, known as specialized engineering firms (SEFs), accelerated the
international transfer of technologies and planted the seeds of the competitive challenges faced
by the U.S. and European firms in the 1960s and 1970s, especially by oil firms. But the
technological response of these firms, especially that of U.S. firms in the 1980s and 1990s, to
these competitive challenges has involved the development of new variants of existing products,
customized to the needs of specific users, and greater integration between products and process
innovation. These steps have not only eroded the markets for the services and technologies of
SEFs but also reduced investment in basic research.
Overall, however, the relative positions of the major industrial producers have not changed much
in the past twenty-five years. Indeed, the major change has been the increase in chemical
production outside the leading industrial countries. In 1959 the United States, Japan, and
2
Western Europe accounted for virtually all chemical exports. By the 1990s their combined share
had fallen to two-thirds, with the rest coming from Asia, particularly South Korea and Taiwan,
Eastern Europe, and the Middle East. Much of the capacity addition took place during the 1970s
and especially the 1980s.
Evolution of chemical industry
The evolution of the chemical industry has been driven by advances in technology and by the
institutions that have facilitated the growth of new markets. In addition to the conventional
market growth in the form of demand from developing countries, the evolution of the chemical
industry also has been profoundly affected by the growth of a market for technology and a
market for capital. When technology becomes widely available, albeit at a price, it can cease to
be a decisive source of competitive advantage, be it for firms or for countries. Instead,
competitive advantage must be sought elsewhere, in cheaper inputs or in closeness to markets.
Similarly, a global market for capital gives shareholders the opportunity to look for the best
returns, putting managements under pressure to cut costs and improve shareholder value. In the
chemical industry, technological superiority was often a key component of competitive
advantage, and the clear relationship between advances in chemistry and chemical engineering
had led the market leaders to fund a substantial amount of basic research. Developments in the
industry in recent years have weakened this incentive. These developments have tended to raise
the payoff to applied, business-driven research relative to more basic and fundamental research.
The industry has responded by forming industry-wide research initiatives in specific areas and by
interfere joint ventures.
Following the big technology push in the industry during the 1950s and 1960s, technology
diffused more widely than it ever had before. In addition to the efforts of SEFs, increased
competition and slower demand growth lowered the payoffs to traditional types of innovations.
Commercialization became more expensive and required ever more sophisticated knowledge of
customers and the market. Faced with overcapacity, the industry, restructured. The drive to
reduce cost dominated the initial restructuring phase, driven in part by the relentless pressure
from shareholders and their representatives. Major realignments of the product portfolios of
3
many firms followed, with many mergers, divestitures, and acquisitions and the rise of entirely
new firms in the industry.
During this phase, many firms cut down on R&D and refocused R&D expenditures on shorter-
term projects and away from more fundamental research. In the past couple of years, there are
some indications that the industry may be entering a new phase of technological change, and
R&D spending appears to be picking up also, as well as increased activity in transborder
acquisitions in addition to domestic ones.
U.S. chemical industry began to experience its competitive "crisis" in the late 1960s, well before
most other U.S. industries encountered growing competitive pressure from foreign sources and
well before the onset of the "oil shocks" of the 1970s that affected prices for the industry's key
raw material. Slower growth for its dominant products, including polymers, along with the
growth of production capacity offshore, led many leading U.S. chemical firms to pursue
diversification programs during the 1970s, with mixed results. In the 1980s, a far-reaching
restructuring in the industry focused firms on a narrower line of products and processes, which
contributed to improved results in many U.S. chemical firms. This restructuring process began
earlier and has proceeded further in the U.S. chemical industry than in those of continental
Europe and Japan.
In the U.S. there are 170 major chemical companies. They operate internationally with more than
2,800 facilities outside the U.S. and 1,700 foreign subsidiaries or affiliates operating. The U.S.
chemical output is $400 billion a year. The U.S. industry records large trade surpluses and
employs more than a million people in the United States alone. The chemical industry is also the
second largest consumer of energy in manufacturing and spends over $5 billion annually on
pollution abatement. In Europe, especially Germany, the chemical, plastics and rubber sectors
are among the largest industrial sectors. Together they generate about 3.2 million jobs in more
than 60,000 companies. Since 2000 the chemical sector alone has represented 2/3 of the entire
manufacturing trade surplus of the EU. The chemical sector accounts for 12% of the EU
manufacturing industry's added value.
4
The chemical industry has shown rapid growth for more than fifty years. The fastest growing
areas have been in the manufacture of synthetic organic polymers used as plastics, fibers.
Historically and presently the chemical industry has been concentrated in three areas of the
world, Western Europe, North America and Japan (the Triad). The European Community
remains the largest producer area followed by the USA and Japan.
The traditional dominance of chemical production by the Triad countries is being challenged by
changes in feedstock availability and price, labor cost, energy cost, differential rates of economic
growth and environmental pressures. Instrumental in the changing structure of the global
chemical industry has been the growth in China, India, Korea, the Middle East, South East Asia,
Nigeria, and Brazil.
Chemical industry in India
India was a net importer of chemicals in early 1990s, but has now become a net exporter due to
reduction in Imports because of implementation of many large scale petrochemical plants like
Reliance etc. and also because of tremendous growth of exports in sectors like bulk drugs and
pharmacy, pesticides, dyes and intermediates. The wide and diverse spectrum of products can be
broken down into a number of categories, including inorganic and organic chemicals, drugs and
pharmaceutical, plastics and petrochemicals, dyes and pigments, fine and specially chemicals
pesticides and agro-chemical, and fertilizers.
The Indian pesticide industry had advanced significantly in recent years, producing more than
1000 tones of pesticides annually. India is the 13th largest exporter of pesticides and
disinfectants in the worlds and in terms of volume is the 12th largest producer of chemicals.
Some of the chemical companies in India are :-
Amichem Corporation
Arichem group
Associated Agencies
Bharat Petroleum
CAE Business Systems
Chemical and Alkali Merchants' Association (CAMA)
Chemo India
5
Colour- Chem. Limited.
D.K.Pharma Chem. Pvt Ltd
Finornic Chemicals
Galaxy Surfactants
Ganesh Trading
GMM Pfaudler Ltd
Gujarat Alkalies & Chemicals
Gujarat Chemicals
Heranba Industries Ltd
Indian Petrochemicals Corporation Limited (IPCL)
Karnavati Chemicals
Kopran Pharmaceutical Ltd
Kumar Industries
La NOVA Chem
Loba Chemicals
Mahalaxmi industries
Mahavir Expochem Limited
MegaVisa
Morepen Laboratories
National Organic Chemical Industries Ltd
Prima chemicals
Ram Nath & Co
Reliance Industries Limited (RIL)
Rishabh Colours Pvt. Ltd
S.A.Chemicals
Salvi Chemicals
Saraf Chemical Industries
Satya Cashew Chemicals
Sears Phytochem
Sood Group Of Companies
Sresan Pharmaceuticals
6
Strides Arcolabs
Sunlite Lumiglo products Co
Surya Pharmaceuticals
Techno Drugs
Unitop Chemicals Pvt Ltd
Varuni Chemicals
Va-Sudha Chemicals Pvt. Ltd.
The chemical industry in India is poised for explosive growth in the coming years. India’s
population has grown nearly as large as that ofChina , with its consuming middle class
accounting for about a third of its population. Disposable income inIndia is rising, potentially
driving growth of chemicals consumption at exponential rates.India’s GDP growth exceeded 9%
for the last fiscal year, fueling double-digit growth of its chemicals industry.
India’s government has set in place policies and special economic zones to promote investment
in its petrochemical sector, and several key domestic companies have unveiled ambitious
expansion plans for the next few years.
The Indian Chemical Industry Outlook is the only chemical conference inIndia organized
specifically to address a broad range of issues impacting the industry. The conference will take a
look at different segments of the Indian chemical industry, and explore the growth opportunities
and challenges in each segment.
Chemical industry’s 2010 outlook
Chemical producers have had a wild ride in 2009. The year started off with companies facing
abysmal demand and sorry prospects for profitability. However, meaningful cost-cutting,
inexpensive North American natural gas, and relatively strong demand in emerging markets--
particularly in Asia--have improved the picture during the course of the year. Going forward,
improved cost structures should help to improve profitability, but companies will still need to
deal with relatively weak near-term demand in developed countries and a wave of new supply
coming on line in the Eastern Hemisphere. Chemicals players will likely continue to right size
7
commodity chemical assets in mature markets, seek access to low-cost feedstock in areas such as
the Middle East, and look for exposure to above-average demand growth in Asia. In response to
the wave of new capacity coming on line, we expect chemical firms to continue restructuring
assets in North America and Europe. Meanwhile, firms will look to partner with resource-holders
in the Middle East to gain access to low-cost feedstock. Finally, exposure to more rapidly
growing markets--particularly in Asia--remains an important aspect of producers' near- and long-
term growth prospects, especially in light of a demand picture that is still relatively weak within
developed markets.
8
ORIGIN AND PROFILE OF THE COMPANY
The DCW Limited is an India-based company. The Company operates as an integrated chemical
manufacturing company. The Company has three business segments: polyvinyl chloride (PVC),
chloro alkali and soda ash. Its products include poly vinyl chloride by suspension, caustic soda
and soda ash. The Company's subsidiary is, DCW Pigments Ltd. Its other subsidiaries include
Double Dot Finance Ltd., Sahu Brothers Pvt. Ltd., Kishco Ltd and Crescent Holdings Pvt. Ltd.
Darangadara Chemical Works story goes back to 1925 when the foundation stone of India's first
Soda Ash factory at Dharangadhra -- a small principality in Gujarat in West India -- was laid.
The plant was taken over in 1939 and run under the name Dhrangadhra Chemical Works. To
wish the venture luck, the company adopted the horse shoe as their corporate logo, which stands
till today, and is widely recognised as a symbol of excellence. It is said that every oak begins as
an acorn. The process of growth received a major impetus in 1959 with the commissioning of the
chlor-alkali plant at Sahupuram in the southern state of Tamilnadu. At that time, the area was
completely barren. Today this complex has made its mark on the chemical map of India as well
as the world.
DCW has certainly come a long way since its small beginnings and is one of India's soundest and
most respected chemical companies.
"Salt is the essence of life. It is the starting material of DCW's basic products."
Headquarters - Mumbai Area, India
Industry - Chemicals
Type - Public Company
Status - Operating
9
Company Size - 2,300 employees
2009 Revenue - $244,040,000
Founded - 1939
Website - http://www.dcwltd.com
Mission
"It is our endeavor to Manufacture and Supply quality products and develop co-operation and
understanding through Trade and Commerce."
Business profile
Incorporated in 1939, DCW was taken over by the present promoters led by the late Sahu
Shriyans Prasad Jain. The company manufactures soda ash, caustic soda, PVC resins, soda
bicarbonates, trichloroethylene, synthetic rutile, titox, utox, bromine, bromide and a few other
chemicals. The company had also introduced a range of home products like packaged spices,
flour and iodised salt. However, later, it sold its Captain Cook brand of home products to
International Bestfoods. The soda ash plant is at Dhrangadhra, whereas the chlor-alkali and PVC
plants are located at Tuticorin in Tamil Nadu. The company was incorporated in 1939 as
Dhrangadhra Chemical Works Ltd. In 1987, the name was changed to the present one. The
company`s entire shareholding in DCW Home Products Ltd has been transferred to Crescent
Finstock Pvt Ltd following a Gujarat High Court approval. After this, DCW Home Products`
best-selling Captain Cook brand has been sold to Corn Products Company, a 74% subsidiary of
the US-based Bestfoods Inc.
DCW IS A DIVERSIFIED manufacturer of basic chemicals, such as:
Caustic Soda
Liquid Chlorine and Chlorine based products such as Trichloroethylene and HCL
Upgraded Ilmenite or Synthetic Rutile
Yellow Iron Oxide
PVC Resin
Soda Ash
Ammonium bi-carbonate
10
DCW is an industry pioneer with a long track record in its markets and has a successful record in
developing downstream and related products. Its competitive position is enhanced by the
diversity of its products. DCW has always focused on cost control and developed value-added
products from waste generated from its production process and export-oriented products like
Upgraded Ilmenite and Pigment grade Yellow Iron Oxide.
DCW operates in three major business segments i.e. Soda Ash, Caustic Soda and PVC. While
manufacturing Caustic Soda we get Chlorine as a byproduct. Hence any caustic soda
manufacturer has to make arrangements for chlorine utilization either by way of selling to other
users or should have in-house utilization of chlorine to operate the caustic plant to its capacity.
Also, as chlorine cannot be transported over long distances due to its hazardous nature one either
needs to establish the Caustic Soda Plant near its user base or should have in-house utilization of
chlorine.
DCW has always believed in manufacturing value-added products from the byproducts
generated from its process. In line with this philosophy, we manufacture value added products
like Synthetic Rutile and Tri-chloro ethylene from the chlorine generated from our caustic soda
plant.
DCW uses 60-70% of chlorine in-house. At present, available chlorine is sold in the open
market. However, we are planning to increase in-house consumption of chlorine to almost 90%+,
by manufacturing value-added products.
Any waste generated in a chemical manufacturing process contains some valuable product.
Hence, the bottomline of any chemical manufacturer depends on how best they are able to
generate commercially viable products from the waste. DCW has a very strong R&D team which
works towards producing commercially viable products out of waste. For example, our R&D
team has successfully developed a product called Iron Oxide Pigment from the waste.
DCW imports VCM on annual contract basis from Mitsui & Co., who has been our suppliers for
the last 25 years. The raw materials for Soda Ash are salt and limestone. Part of the company’s
salt and limestone requirements are met from the company’s own salt fields and captive
limestone mines and balance is procured from outside sources available in local markets.
11
For Caustic Soda, the main raw materials are Salt and Power. The company has its own captive
salt fields which meet about 60-70% of salt requirements while the balance salt is purchased
from the open market. We are working on increasing our salt production capacity.
The price of VCM is highly fluctuating. However, prices of finished product PVC also moves in
tandem and hence there is always a delta between the price of raw materials and finished goods.
For other raw materials like salt and limestone, the prices are more or less stable. DCW meets its
power requirements from its in-house captive power plants in all its divisions, which helps the
company generate quality power and at a viable cost.
DCW is an industry pioneer with a long track record in its markets and has a successful record in
developing downstream and related products.
Its competitive position is enhanced by the diversity of its products.
DCW has focused on development of value-added and export-oriented products like Upgraded
Ilmenite and Pigment grade Yellow Iron Oxide.
DCW has embarked on an ambitious project for the manufacture of Ferrite Grade Iron Oxide
with a capital expenditure of around Rs. 1 billion.
DCW Limited., is an industry pioneer with a strong presence in the Chlor Alkali chemicals,
Synthetic Rutile and Poly Vinyl Chloride business segments. Dharangadhra chemical Works was
incorporated in the year 1939 to take over India's first Soda Ash factory at
Dharangadhara in Gujarat its ownership was acquired by Padmabhushan late Shir Sahu Shiryans
Prasad Jain in 1949. Due to its diversified and modernized operations the company Public
Limited Company manufacturing a wide range of chemical products. In 1987, in view of its
more diverse operation, the name of the company was changed to DCW Limited. The company
has two manufacturing units one at Dharangadhra Gujarat state and another one at Sahupuram in
the state of Tamilnadu. DCW has a successful record of developing downstream and related
products.
12
Quality, health, safety and environmental policy (QHSE)
At DCW, Quality, Health & Safety and Environmental concerns are integral to its business of
manufacturing Chlor Alkali Chemicals, Synthetic Rutile, PVC Resin and derived value added
products supported by utilities including Captive Power Generation.
In pursuit of the above, Sahupuram Works is committed to:
Comply with all applicable legal and other requirements connected with Quality,
Occupational Health & Safety and Environmental matters;
Conserve and optimally use natural and other resources by adopting relevant technology
and operational practices; implement measures to maintain safe working and
occupational health standards; and provide products & services leading to customer
satisfaction;
Create awareness on Quality, Occupational Health & Safety and Environment by
teamwork, training and meaningful communication of the QHSE Policy to employees,
persons working on behalf of the organization and relevant interested parties;
Continual improvement in Quality, Occupational Health & Safety and Environmental
performance including prevention off pollution, through planned Objectives & Targets.
Continuous prevention of pollution, injury & ill health through planned Objectives &
Targets.
Social Conscience
DCW BELIEVES THAT it has obligations not only to itself and its shareholders, but to the
citizens of India at large. Towards fulfilling these obligations, DCW has undertaken a
considerable amount of social work at both Dhrangadhra and Sahupuram in the area of education
and social up liftmen.
At Dhrangadhra, DCW contributes substantially to the S.P. Jain Arts and Commerce College,
and the Panjarapole Trust which maintains old cattle. In addition, DCW maintains a club for the
welfare of its employees and runs a primary school at the labor colony. The company also makes
contributions to the Kidney Disease Research Centre for hospital patients and to the Tiffin Seva
Mandal for feeding the poor.
13
At Sahupuram, DCW runs an English medium school (right), maintains a full fledged hospital
facility, runs a recreation club and has a unique scheme called "Own your own housing" - by
extending loans to employees for construction of their own houses. The company also subsidizes
a co – operation run canteen for all workers. Various social welfare activities are undertaken
from time to time in the area. DCW, Sahupuram, has the distinction of having a charter of the
Indian Society for Training and Development to impart regular training programmes and
arranging guest lecture
DCW has also promoted the S.P. Jain Institute of Management and Research, a leading
management institute in Bombay, offering post-graduate degrees in management. The institute is
recognised as one of the best in India. DCW has also contributed towards the S.P.Jain Sadhana
School for the mentally handicapped in Bombay. Both institutions have been named after the late
founder - Chairman of the company, Mr. Shriyans Prasad Jain.
DCW firmly believes that the business of business is not only business, and hence it contributes
towards improving the quality of life of its people by active participation in social welfare
activities.
Research and development
STAYING AHEAD IMPLIES being constantly on the move, keeping track of technology and
market needs. Something that DCW lays a great deal of emphasis on, with a fully fledged
Research and Development Centre at Sahupuram. This R&D Centre is recognized by the
Department of Scientific and Industrial Research of the Government of India.
Some of the significant efforts undertaken by our people:
1. The bench scale process developed by Wah Chang for beneficiation of ilmenite ore was
scaled up and engineered entirely by DCW in the first plant of its kind in Asia. (1970)
2. Development of a product called "Utox" from waste liquor of digesters in the ilmenite
plant and used as a partial replacement to Titanium Dioxide. (1978)
14
3. Replacement of graphite anodes with metal anodes in the Caustic Soda cells for the first
time in India - resulting in substantial energy savings. (1979-82)
4. Covering for the first time, 205 acres of sandy waste land with polyethylene to avoid
seepage of concentrated brine, increasing salt production by 60%. (1979-83)
5. Improvisation of recipes, entirely in - house, resulting in a capacity utilization of 180 %
in the PVC plant. (1984 - 86)
6. Process of de-mercerization of mercury - bearing water effluent developed for the first
time by DCW. (1985)
7. Development of a new product called "Weldgrade beneficiated ilmenite" developed by
DCW for the welding rods industry. (1985)
8. In collaboration with CSIO, Chandigarh, a process for current monitoring based on
microprocessors was developed in the Caustic Soda Cells to result in energy saving of
125 KWH per ton of Caustic Soda. (1986)
Apart from these, in 1992-93, DCW also perfected the production of high purity synthetic retile
wherein the purity of TiO2 is over 95%. The product has low silica and alumina content and
radioactive matter that is much below the normal levels. The R&D section at DCW has also
developed Synthetic Iron Oxide pigment using leach liquor - a waste from the limonite plant.
The developmental work commenced in 1992 and the pilot plant was commissioned in 1993.
This is a prime example of DCW being a forerunner in converting waste into wealth and in its
contribution towards pollution control.
Certifications
The ISO-9000 is the hallmark of a good quality - oriented system for suppliers and manufactures.
It identifies the basic principles underlying quality and specifies the procedures and criteria to be
followed to ensure that what leaves the manufacturer / suppliers' premise fully meets the
customer's requirements. The ISO- 9000 series of standards are basically quality assurance
standards and not product standards. ISO-9000 spells out how a company can establish,
document and maintain an effective and economic quality control system which will demonstrate
to the customer that the company is committed to quality.
DCW Ltd., is certified with:
15
ISO 9001 for Certificate of Quality Management System
ISO 14001 for Certificate of Environment of Management System
OHSAS 18001 for Occupational Health and Safety Management System
The different types of plant and machinery along with the products manufactured are -:
Plant/Facility Installed Capacity Input Output
Salt Pans 1,40,000 tpa Sea Water Industrial Grad Salt for capative consumption
Caustic Soda Caustic soda – 60,000 tpa HCL Acid–
90,000 tpa
Sodium Chloride (Salt)
Caustic Soda Lye, Caustic Soda Flakes,
HCl Acid
Liquid Chlorine 30,000 tpa Gaseous Chlorine from Cell House
Chlorine
Trichloro ethylene 5,400 tpa Calcium carbide and Chlorine from LCP
Trichloro ethylene
Llmenite 25,000 tpa Llmenite, Ore Cokefines and HCl from Caustic Soda
plant
Beneficiated IImentite
Ultox 1,200 tpa Titanium di oxide fines
Utox pigments
Iron Oxide 450 tpa Waste Leach Liquor from llmenite plant
Aqueous Ferric Chloride
Paint 300 ltrs per shift Utox Colored pigments and other solvent additives
Enamel paints
Vinyl Chloride Monomer storage
installation
5,600 Mt Imported material
Poly vinyl Chloride 80,000 tpa VCM PVC Resin
16
Resin
Power Plant Coal based 45 MW Oil based 36 (6*6)
MW
Low Sulphur Heavy Stock Oil
Electricity & Steam for captive
consumption
17
ORGANIZATION STRUCTURE
Organization
An organization is a social arrangement which pursues collective goals, which controls its own
performance and which has a boundary separating it from its environment. It is wide area where
a humpty number of people work for a common goal. It consists of various departments and
activities. It is not a single person who runs the organization. It is a place where people share
their views, launch new products, work on new projects etc. It can be either products or services.
It depends on the nature of the company’s business.
ORGANIZATION STRUCTURE
18
President
Vice –President (s)
G.M G.M G.M G.M G.M G.M G.M
D.G.M
G.M G.M D.G.M
D.G.M
D.G.M
D.G.M
Manager Manager Manager Manager Manager Manager Manager
The company has the following departments with a wide number of functions
Production department
Financial department
Human resource department
Marketing department
19
PRODUCTION DEPARTMENT
Introduction
The Product Profile of DCW includes the production of a wide range of chemical products. At
Dharangadhara, it produces:
1) Soda
2) Ammonium Bicarbonate
3) Liquid Bromine
4) Bromide
At Sahupuram branch, it produces following chemical products:
Caustic soda
Liquid Chlorine
Trichloro ethylene
Hydrochloric acid
Synthetic Retile
Yellow iron oxide
Ferric chloride
Enamel paint
PVC Resin
PRODUCTS AND INDUSTRIAL USAGE
S.No PRODUCT INDUSTRIAL USAGE
1 Common Salt (Nacl) Caustic Soda and Soda Ash industries manufacturing
chlorine, Hydrochloric acid and other Sodium
Compounds.
2 Caustic Soda (NaOH) Aluminum, Rayon, Paper, Soap, Vanaspathi,
Petroleum products, Dyes and Textiles.
3 Liquid Chlorine (Cl2) Manufacturers of Trichloro ethylene, Petrochloro
ethylene, Refrigeration, Pesticide, Paper and pulp.
20
4 Hydrochloric Acid (HCL) Chemicals, Acid pickling, Metal cleaning, Refrigent,
Fumigant.
5 Trichloroethylene (C2HCl3) Metal degreasing, Dry cleaning, Refrigent, Fumigant.
6 Sodium Hypochlorite Bleaching purpose.
7 Upgraded Beneficiated
IImenite (synthetic Rutile)
Pigments, Welding electrodes, Paints, Titanium
sponge.
8 Utox & yellow Iron Oxide Paint Industries.
9 Ferric Chloride Effuent water sewage, Textile, Etching and
Chlorinating.
10 Poly Vinyl Chloride Resin Pipe industry, Automobile & Sanitary fittings, Wires
and Cables, Bottles, Containers, Transparent Films
and Flexible hoses.
Production SWOT analysis
21
S - STRENGTH
The production is very high compared to the previous years.
A new product is introduced in each five years gap.
The production level is increased day-by-day.
They give the contracts to produce the products.
All the products are exported.
The increased production of products has the warehouse facility to store them.
Seawater is the major raw material, which is very nearest to the firm, because it is
situated near the seashore.
If no products are exported, at that time the production level is not stopped, production is
maintained the same level of growth.
Other manufacturing companies need these chemical products so the production
is not stopped.
DCW also generates electricity for its own purpose.
It operates a 50 MW Coal based captive co- generation power plant at Sahupuram in
Tamil Nadu, India.
In addition to meet its own requirement the company also planning to sell surplus
electricity generated.
W – WEAKNESS
1. High level of production or non-stop production of chemical products will make the
environment polluted much.
2. Major damage is to Ozone layer.
3. Many health disorders are affected not only to the employees but also to the surrounding
inhabitants, animals' birds and plants.
4. Absenteeism is a problem which creates cost and productivity problem, puts an unfair
burden on the majority of employees who show up for work, ultimately hinder customer
satisfaction, and drains the country's economy.
22
5. Excessive absenteeism involves a considerable lose to the enterprise because work
scheduled are upset and delayed and management has to give overtime wages to meet the
delivery dates.
6. The rates of overtime wages are double than the normal rates of wages.
7. Any type of accidents occurs in the factory while in production.
8. Lack of supervision while production.
O - OPPORTUNITY
1. Government provides loan facility to the company towards increase in production
growth.
2. Government provides Tax exemption on exporting goods.
3. Company products are reduced their Tax rate.
4. IDBI (Industrial Development Bank of India) provide the loans for company production
development.
5. Raw material like seawater is a great opportunity to the company as it gets from the
nature.
6. Excessive of energy creation is sold to the Government.
7. Lots of contract work is given to others, which make less expensive.
8. Warehousing facilities are available.
T - THREAT
1. If competitors company try to attract the experienced employee of the other company.
2. Natural calamities cannot be avoided.
3. Must have an eagle eye on the market and the competitors.
4. Other competitors using new and advance technology in making products, this may
create fear in marking.
5. While exporting the products to abroad any natural catamites occurs in
transportation will make major loss.
6. Removal of subsidy affects profitability and viability of many industries.
7. Banks and insurance sector came under competitive environment and were forced to
operate possibly, at balance with the private sector.
23
FINANCIAL DEPARTMENT
Introduction
Financial analysis is a powerful tool to ascertain in strength and weakness in the operation and
financial position of an enterprise. The analysis of financial statement
is useful to:
Management
Investors
Creditors
Bankers
Financial Institutions
The financial statement is an organized collection of data according to logical and consistent
accounting procedures. Its purpose is convey and understanding of same financial aspects of
business firm. It may show position at a movement of time as in either case of the balance sheet
or may reveal a serious of activities over a given period of time as in the case of an income
statement.
Thus the financial statement is generally refers to the basic statement.
The income statement.
The balance sheet.
The statement of retained earnings.
The statement of change in financial position in addition to the above two statement.
Functions
The primary functions of the Finance Department are:
Prepare and administer the City's Annual Budget for the City Manager;
Provide financial advice to the City Manager and City Council;
Maintain a general accounting system;
Collect all taxes and revenues of the City;
Invest cash reserves;
Prepare financial reports;
Administer the payroll, and
24
Procure equipment and supplies and control inventories of the City.
Analyzing the financial performance of the DCW Ltd.
Analyzing the financial position of the company through ratio analysis
Determination of periodic changes in the financial performance o the company and to
prepare comparative statements.
Studying the liquidity, profitability, solvencies and turnover of the company.
Studying about the operational efficiency of the firm.
Process of identifying of financial strength of a firm from the available accounting data
financial statement.
The analysis is done by properly establishing the relationship between the items of
balance sheet and profit and loss account.
The first cost of the analyst to determine the information in way to significant
relationship.
The final step is interpretation of drawing of inference and conclusion
Financial SWOT
S – STRENGTH
1. The company has built up strong, stable management cable of riding through the vices
studies.
2. DCW is an industry pioneer with a long track recorded in its markets and DCW is a
diversified manufacturer of basic chemicals.
3. DCW has focused on development of value added and exports oriented products like
upgraded limonite and pigment grade yellow iron oxide.
4. DCW has go aboard on an ambitious project for the manufacture of ferrite grate iron
oxide with a capital expenditure of around Rs. 1 Billion.
5. Production and sales both are standardized for the whole year, so no loss is occurred.
6. DCW lays great deal of importance on with a full fledge research and development
Centre at Shupuram, which is recognized by the department of scientific and industrial
research of the government of India.
7. Proper allocation is done for each department and division.
25
8. Every year financial status is increased.
9. High level of exporting of products increases the funds for the company.
10. Most of the products are given under contract, so funds are saved or minimized.
W-WEAKNESS
1. Due to Absenteeism more expenses are done on wages and overtime payment, which is
paid in double.
2. Machines must be maintained properly; otherwise again a huge amount of investment
must be done on fixed assets.
3. If there is lack of supply, then there will be decrease in profit.
4. Due to chemicals products production, there will be high-level maintenance expenses
must be needed.
5. Medical care expenses must be done for employees.
6. Huge amount of investment is done for industry wastage and sewage, if this isnot done
then it will create many dangerous situations.
7. If new technology machines are introduced in the company, then the company must bare
the training expenses.
8. Any sudden risk expenses will decrease the net profitability ratio.
O - OPPORTUNITY
1. Many Government policies are introduced.
2. Taxation relief is given in some Circumstances by the government.
3. Foreign orders are many, so products are exported in huge quantity.
4. IDBI (Industrial Development Bank of India) supports the financial position of the
company.
5. Fewer expenses are made on raw materials.
6. The government introduces many new schemes.
7. Injured or death or damages can be Insured. Many Insurance policies are available and
can be claimed
26
T - THREATS
1. Company's secrets financial matters must not be leaked out.
2. Government increases the Taxation rates on sale of products.
3. Foreign orders are reduced, and then exporting will be minimized.
4. Fall in price on finished goods will make income less.
5. Some of the raw materials rates are increased.
6. Sudden failure of machinery will take to huge investment.
7. If competitors reduce their product rate in the market, then it will affect the company in
selling their goods.
8. Tender quotations must keep secretly, it must not be let out to other competitors.
9. Scientific research must be kept secretly so that no one can take copyright
10. More debtors and creditors make the company in critical position.
11. If the competitors introduce new technology machines then the company must also invest
their machines.
12. Shortage in raw materials will lead to production delay or reduced.
13. Lockouts or Strike periods will affect the company.
14. If new rules and regulations are introduced by the Government.
15. If Government increases the Taxation rates on exporting of goods to foreign.
27
General Manager (HR)
Deputy Manager Deputy General ManagerHR
Medical Officer
Officer (Personnel)Officer
Personnel Male nurse
Administration Assistant
HUMAN RESOURCES DEPARTMENT
28
Functions
Recruitment and placement of human assets in various positions.
Personal establishment work and Personal records maintenance.
Administering employee welfare programs
Organizing employee related functions.
Formulating and monitoring employee motivation schemes.
Payroll processing.
Time office administration.
Matters concerned with organization chart, placements, career growth, and job rotation.
Quarter's allotment in Sahupuram Complex.
Training of personal.
Managing Industrial Relations.
Compensation related issues.
Monitoring discipline and assisting line management on disciplinary matters.
Dealing with employee counseling and grievances.
Manpower has been classified as follows:
1st Roll comprising of staff employees in grades Ml to B - Vice President to DY.
Manager levels. They in non-union category.
2nd Roll comprising of staff employees in grades C to E - Sr. Engineer / Sr.
Officer to Asst. Engineer / Jr. Officer levels. They are in non-union category.
3rd Roll comprising of staff employees in posts of Drivers, Cleaner-Cum-Drivers, Head
Guards, Security Guards and Office Attenders. They come under bargain able category.
4th Roll comprising of workmen in grades I to VII. They are union category.
The total manpower in Sahupuram consists of all the above categories plus Engineer
trainees, Trainee Supervisor / Chemist, Diploma Trainees, Badlis and short term
apprentices
29
Joining formalities
On your first day,
The employee will have to report at the personal department.
Submit your offer of appointment, letter from your previous employer, qualifications
certificate, experience certificate and other testimonials as required.
Meet our Medical officer at the Works Hospital regarding your medical fitness.
Fill up certain formats like PF, Gratuity nominations etc.,
Induction
The personal department will prepare your Induction program. The Induction will cover all
departments of the organization. A copy of your induction schedule will be sent to all the
department heads in advance in order make the induction program smooth and give adequate
time for them to prepare themselves for your visit. On completion of your induction program
personal department will put you through to your department head that will decide on your
assignments. During the induction you will also meet VP (works) and VP (Mfg.). Your Induction
will conclude will conclude with a wrap up session with GM (HR) s.
Identity card
You will be provided with a photo identity card by time office. You are expected to wear you
identity card or produce it on demand by security. L loss of identity card should be reported to
Security/ Time office immediately. Replacement of identity card will be done on payment of
charge fixed for the purpose.
Attendance
You are required to register your attendance everyday through electronic punch card attendance
system. Your punch card will be issued by time office to be used by you to punch "IN" at the
commencement of your shift and punch "OUT" at the end of your shift. Clocks are installed in
the Time Office located at the factory gate and also at the administrative building. Those work
locations ate in the plants would punch at the time office while those located in administrative
office will punch in the clock installed in the complex. Needless to state that you are expected to
30
be punctual in attendance barring ate unforeseen eventualities. In case of loss or damage to your
punch card, the matter would need to be reported to Time Office immediately. Replacement of
lost card will do by Time Office on payment of charge fixed for this purpose.
Work rules
If you are a staff employee, your service in the company would be governed by the provisions of
General Service Rules read along with your offer of appointment. Service conditions of
Workmen are governed by the certified Standing orders. Details in this regard can be had from
personnel department.
Salary payment
If you are a staff employee will receive your salary for the month on the third or fourth working
day of each subsequent month. The net pay would be deposited in your bank account either in
the bank operating in the Sahupuram Complex or one of the neighborhood banks and intimate
your account number to the payroll. You will also receive a pay slip every month detailing your
gross pay, deductions effected and net pay. For workmen, the wages for the month is paid on the
seventh working day of each month. Pay roll section will clarify your doubts on your pay,
allowances and deductions.
Leave
All employees are entitled to ten days casual leave in a year. Unveiled casual Leave will
automatically lapse at the end of the year. Other leave entitlements like, privilege/earned
leave, sick leave will depend upon whether you are in the staff of workman category. You
can ascertain your leave entitlement from personnel department on your first day. Leave
records are maintained by time office.
Barring unforeseen eventualities, you are expected to obtain prior permission of your superior
staff for availing leave and get the leave sanctioned in advance in the 3 prescribed leave
application formats. Always remember to leave your contact telephone and address with your
department head so that you are contactable should the need arise. You need to not that leave
would be sanctioned subject to exigencies and keeping the interest of the plant in mind.
31
Holidays
You are entitled to nine holidays consisting of six common holidays and three sectional holidays
every year. Personnel department every year notifies the lists of 7 holidays. The three sectional
holidays are related to religious affiliation. For example if you are a Hindu you are entitled to
avail the three sectional holidays declared for Hindu religious festivals. However, due to
exigencies and requirements you may have to attend duty on these days for which you will be
compensated as per rules.
Benefits
As a member of the DCW work team you are eligible for certain service benefits, to foster good
health, trust and mutuality of interest. Some of these are, of course, statutory in nature. Some
benefits are extended only to staff while some are common to all employees. An illustrative list
of benefits is given below:
1. Provident Fund - the company is an exempted establishment and PF is administered by a
Trust set up by the company.
2. Service Gratuity.
3. Death Relief Fund.
4. Group Superannuating Scheme for senior level staff.
5. Insert - free pay advance.
6. Medical Reimbursement
7. Leave encashment
8. Festival Advance
9. Vehicle / Furniture / Fridge loan for 1st roll staff.
Growth
Performance, commitment and loyalty are the benchmarks for your growth and progression in
the organization. You will also be given a hike in your salary by way of annual increment / pay
increase. The company allows you to upgrade your knowledge by pursuing relevant professional
courses while in service and recognizes your successful efforts in this regard.
32
Work hours and shifts
The Sahupuram unit Works in three shifts. In addition there are two general shifts.
SHIFT WORKING HOURS
"A" Shift Lunch 6.00 AM - 2.00 PM 12.00 Noon-12.30PM
"B" Shift Break 2.00 PM-10.00 PM 6.00 PM-6.30 PM
"C" Shift 10.00 PM-6.00 PM
"D" Shift Lunch 7.30 AM - 4.30 PM 12.00 Noon-1.00 PM
General Shift Monday – Friday Saturday Lunch 9.15 AM-5.15 PM 9.15AM-1.15PM 1.00 PM-1.30 PM
Employee welfare measures
Work dress
All workmen and certain categories of staff like drivers, attendees etc are provided with work
dress and shoes / footwear which they are required to wear while on duty. However, even those
employees not provided these facilities are expected to wear proper dress and shoes while at
work in the interest of their safety.
Medical center
A six bedded Works Hospital with emergency room other essential facilities has been set up
within the complex. A qualified doctor is in charge. The hospital function round the clock with
other Para -medics to provide medi-care to works injury cases and medical consultation for the
residents of Sahupuram Township. The Centre also organizes statutory medical examination for
33
workmen. As you have seen, there are a host of departments carrying out functions they are
responsible for resulting in the proper conduct of the business of the enterprise. Each one is a
supplier or customer to another. Irrespective of the department you are placed in, you must know
who your customers and suppliers are. Your role as a supplier would be to deliver outputs that
meet and exceed your customer's expectation every time. Likewise, your role as a customer
would be to specify to and obtain from your requirements and expectations.
Canteen
Employees at work are provided wholesome food in the canteen, which is operated by
employees co-operative and subsidized by the company. The canteen also provides tea / coffee
service at work spots in all shifts.
Transport service
The company operates a daily pick up and drops service for staff employees residing in
Sahupuram, Authoor, Arumuganeri up to New Colony and not availing conveyance
reimbursement benefit. The service is operated in all the shifts. Those availing conveyance
reimbursement are also permitted to use this service on nominal payment. For the benefit of Staff
personnel and their families the company also operates a daily transport service in the evenings
in the Sahupuram - New Colony - Authoor - New colony - Sahupuram Route. Special trips to
Thoothukudi and Trichendur are arranged exclusively for residents of Sahupuram and their
family to facilitate purchase.
Sports and recreation
The Company organizes every year pleasure trips to Courtallam for employees and their
families. The Sports Council constituted by the company plans and organizes various sports and
games not only to nature talents but also to foster competitive spirit amongst employees.
Winners in various in - house sports and games conducted by the Council are recognized on
the Founder's Day Celebrations held every year in March/April. The council also ensures
company participation in interdistrict and important tournaments. A film Committee
periodically organizes screening of current feature films in nearby theaters exclusively for staff
employees and their families.
34
Townships
The company has set up a small township at Sahupuram for staff employees at the level of
engineers and above. 102 quarters in five types have been constructed and allotted to eligible
staff personnel depending upon of nature of work / department need.
The township has facilities for recreation in the form of auditorium, in house cable -television,
play grounds and park. The Mangala Vinayagar Swamy Temple in the colony is an integral part
of the lives of the residents of Sahupuram Township. In order to provide lodging / Boarding
facilities to important visitors and outstation company officials, the company has set up a Staff
Stay House in the township.
The guest house has 10 rooms including VIP rooms, all air-conditioned and functionally a
furnished, a well laid out dining hall which serves vegetarian cuisine and a lounge. It has also
facility for open air get together. The township also has the works hospital. Round the clock
security service is provided in the township. A post office and bank is also available in the
township. For workmen the company has constructed a residential colony at Sernthamangalam,
about 10kms from Sahupuram. The colony also has a Vinayagar Temple.
School
A CBSE - affiliated high school named Kamalavati Higher Secondary School has been set up by
the company to provide quality education to children of employees and those residing in the
neighborhood. The school is equipped with playground, computer center, laboratory, and library
and open-air stage.
35
Human resource SWOT
S - STRENGTH
1. Each and every year productivity level is increased so the employees' resources are also
increased.
2. Better analysis leading to more effective decision-making.
3. Many career planning and counseling at all levels.
4. Improved quality of reports kept for different persons and different departments
5. Better ability to respond to environmental changes.
6. Supply data and returns to Government and to the pubic
7. Responsible for the protection of Company's movable immovable properties in the
factory, townships and salt area
8. Also equipped to tackle fire incidents
9. All the facilities available inside the campus for the employees to work in a better
surroundings.
W-WEAKNESS
1. Less communication in between the groups and individuals.
2. Can be expensive in terms of money and manpower requirements.
3. Continuous absences will make much burden of work on others.
4. If training program is not conducted for a period to new employees it creates difficult
positions.
5. Good medical care is not provided to employees while in-need.
6. Remuneration is not given in time.
7. If any refreshment program are not given to employees.
O – OPPORTUNITY
1. New recruitment is done for new employees.
2. Welfare facilities are available.
3. Cultural programs are conducted yearly once for the refreshment of the employees
4. Incentives are given to motivate the employees.
36
5. Research persons are available in DCW, which is a very big opportunity to the company.
6. Regular gathering of staff personnel are organized to provide them platform for
interacting and presenting suggestions towards Cost Improvement, which gives put into
practice with successful results.
7. Enough opportunities to participate in continuous improvement programs and exhibit the
innovative and creative abilities
T - THREAT
1. Leakage of the company secrets to competitors
2. Sudden resignation of any well working employee
3. Well-qualified employees moving to other competitors for more earnings
4. Competitors giving more opportunity to the employees, so that they are attracted and join
them
5. Employees' skills are not praised or not paid incentives may quit the company and join
the competitor and tell the companies in and outs, which may create a major loss for the
company.
6. If employees benefits are not given to them
37
General Manager
Deputy Manager Deputy General Manager
Officer (Personnel)
Administration Assistant
Officer
MARKETING DEPARTMENT
38
Functions
1. The chief functions of sales management are:
2. Recruiting and employing salesmen and fixing their compensation and respective
territories.
3. Training the salesmen in knowledge of the goods and in methods of selling them.
4. Supervising and directing the sales activities of the men out in the field, sending them
letters and providing helpful information.
5. Preparing and furnishing equipment for salesmen in the way of samples, sample cases,
price lists, kits, portfolios, or whatever else may be necessary, depending on the nature of
the business and the product or service sold.
6. Supervising and checking the expense accounts, route lists, detailed reports and daily
letters of the salesmen.
7. Determining sales quotas, providing bonuses and prizes, conducting sales contests and
special sales campaigns.
8. Preparing, or directing the preparation of, sales manuals, or salesmen's handbooks,
giving detailed information about the company, the products, and the sales principles and
methods involved in selling.
9. Cooperating with the advertising department by helping the salesmen utilize and sell the
company's advertising and aiding them to assist customers to make use of advertising
helps, and by obtaining reports from the field concerning the reaction to the company's
advertising and that of competitors.
Direct domestic customer
1. These are the Direct Domestic Customers of DCW Ltd.,
2. Industrial Associates, Mumbai.
3. Biocon Limited, Bangalore.
4. BHEL, Bangalore.
5. Hindustan Aeronautic Limited.
6. MICO Bosch, Bangalore.
7. Agsar Paints
39
Overseas customer
1. These are the Overseas Customers of the DCW Ltd.,:
2. Marubeni Corporation.
3. Ishihara Techno.
4. Mitsui & Co.
5. Capricorn Chemicals
6. Dollar Corporation
7. Dupont
Marketing SWOT
S - STRENGTH
1. Accessibility to customers at all times.
2. Number one company in producing chemical products.
3. Promptness and responsiveness to customer needs.
4. Demand for the products in the market, which increase in supply.
5. Prices are normal compared to their competitors.
6. Having knowledgeable people interact with the customers.
7. Hold current users by encouraging repeat purchasing.
8. Following up properly and doing it right so that promises are kept.
9. Better warehousing for the finished goods.
W-WEAKNESS
1. Delay in goods supply to the customer.
2. Damages of goods send will create bad impression on the company.
3. If heavy expenses are not made on marketing.
4. Promises made by the company must be satisfied.
5. No customer service centre is provided.
6. Cannot compensate for a poorly trained and ineffective sales force.
O – OPPURTUNITY
40
1. The new Economic Policies of the Government of India in general.
2. Good quality products of DCW are produced, makes many customers to buy the products
from them.
3. Encouragement to Foreign Direct Investment (FDI), which is an opportunity to DCW.
4. Brand name makes many customers not only in home country but also abroad.
5. New technology is used to produce the products, which brings out good quality goods.
6. Liberalization of Industrial licensing.
7. Neutralize competitive advertising and sales promotions.
8. They do direct marketing, which is a major opportunity.
9. Maintain price leadership or price similarity with competitors.
T – THREAT
1. Must have an eagle eye on the market and the competitors.
2. Other competitors using new and advance technology in making products, this may
create fear in marketing.
3. While exporting the products to abroad any natural calamites occurs in transportation will
make major loss.
4. Removal of subsidy affects profitability and viability of many industries.
5. Banks and insurance sector came under competitive environment and were forced to
operate possibly, at balance with the private sector.
6. Entry of Multi-National Companies (MNCs) into the Indian market on a large scale
increases the competition for products and services.
7. Big players start buying smaller players through joining and achievement.
OBSERVATION
41
The internship was very helpful in gaining knowledge in a wide area of the organization.
It has widened more on the functioning of the company
The surrounding of the organization and the atmosphere was a different part of the study
CONCLUSION
42
43