CHAPTER TITLE PAGE NO

1. INTRODUCTION

1.1 BRIEF INTRODUCTION 1.2 INDUSTRY PROFILE 1.3 COMPANY PROFILE 1.4 PRODUCT PROFILE 1.5 ORGANISATIONAL STRUCTURE

1

2. OBJECTIVES AND SCOPE

2.1 OBJECTIVE OF STUDY 2.2 SCOPE OF THE STUDY 2. 3 METHODOLOGY OF THE STUDY 2.4 LIMITATION OF STUDY

5

3 DEPARTMENTAL STUDIES

3.1 MARKETING DEPARTMENT 3.2 FINANCIAL DEPARTMENT 3.3 PERSONNEL DEPARTMENT 3.4 PURCHASE DEPARTMENT 3.5 PRODUCTION DEPARTMENT 3.6 OTHER DEPARTMENTS

14

4. FUTURE STUDIES 48

EXECUTIVE SUMMARY

Travancore Cement Limited is a public limited company under the control of Government of

Kerala. The study entitled Organisation Study on the Travancore Cement Limited; Kottayam gives a

partial exposure to the theory that learned.

The data collected from the organization is through direct interview with various

departmental heads. The departments of the company are working with corporate relationship and mutual

understanding. Their working is taking place in different shifts.

There are mainly 17 departments, out of which main departments are marketing

department, finance department, personnel department production department, purchase department, and

other departments such as general stores, maintenance department, electrical department, quality control

department, transportation department, packing house, workshop, dredging department, cement paint

department, water transport department, Time office, security department. The organization is engaged of

highly professional and providing a decent living to its employees.

The organizations maintain a high level of customer satisfaction. Their distribution is

through stock list. It is a government of Kerala owned organization.

INTRODUCTION

1.1 BRIEF INTRODUCTION

The ancient Romans developed cement and concrete similar to the kinds used today. They

manufactured cement by mixing slaked lime (lime with water) with a volcanic ash called Pozzuolana.

People lost the art of making cement after the fall of Roman Empire in AD 400’s. In 1759, John Sneaton ,

a British Engineer found how to make hydraulic cements by using blue lime with clay content and

Pozzuolana from Italy. I. C. Johnson produced Portland cement in 1845. Portland cement contains about

60% lime, silica and 5% alumina. Iron oxide and Gypsum make up the rest of the materials. In the plant

the materials go through a chemical process that consists of three basic steps namely crushing, grinding,

burning and finish grinding.

Cement was developed by Joseph Asp Din of England. He manufactured commercially the

improved quality of Portland cement in a country market kiln in the year 1848. Cement produced on 21 st

October 1854 was patented as Portland cement.

Cement Industry in India has made significant contribution to the country’s economic

development. This is obvious because most of the development activities of the country involve

construction works using cement. South Indian Industry Limited installed the first cement industry in

Tamil Nadu in 1904 and then onwards number of factories manufacturing cement was started. In our

country there are 51 companies and 99 plants having installed capacity of manufacturing 700million KN

of cement and with this installed capacity, the Indian cement Industry is the largest in the world after

China, Russia, Japan and USA

Industrial era in Kerala and its beginning from the time of Sir C.P Ramaswamy Iyer, Diwan of

Travancore State during the pre-independence period. He knew that the cement is one of the basis

industrial needs for the speedy industrialization of the state and felt it is very essential for the state to have

atleast a cement factory. But lime stone deposits of the required quality were not available to start a

cement plant factory in travancore. However, lime shells available in the backwaters offered in alternative

of course a better source for calcium raw material. Sir C.P Ramaswamy Iyer induced the promoters of

TCL for pulling up cement plant based on the lime shell reserve. Thus the first cement plant starts its

operation on 7.12.1946 in Kerala

1.2 OBJECIVES OF THE STUDY

The objectives of the study are:

To familiarize with the business organization

Getting practical experience regarding the organizational function.

To learn about the policies and functions of the organization.

To understand the culture in the organization and its effect on employees.

To get industrial exposure and experience.

To understand the marketing and production methods.

Interact with real environment of an organization.

Study the structure of the organization.

Know the efficiency and succession of the company.

Study the functioning of the organization.

Study the relationship between the workers, managers and top authority.

Study the functioning of different department.

1.3 SCOPE OF STUDY

The study in mainly based on the details collected from each department. It provides a better

understanding at functional level of each department i.e. purchase, materials, production, marketing,

finance and human resource management. Each and every activities of the company is studied very

carefully with the data available. Apart from that, I gained knowledge of the functioning of different

departments and their interrelationship with each other. This study helped me to familiarize myself with

the white cement segment.

1.4 METHODOLOGY OF THE STUDY

Research comprises defining and redefining problems, formulating hypothesis or suggesting

solution, collecting, organizing and evaluating data at careful testing the conclusion determine whether

they fit the formulated hypothesis.

METHOD OF DATA COLLECTION

1.4.1 Primary Data:

Primary data have been collected through discussion with the concerned executives of the

company.

1.4.2 Secondary Data:

Secondary data are those data which are gathered for some other purposes and are already

available in the firm’s internal records and publications. They are mainly collected from old report like

annual report of the company, company brochure, company documents, company journals and other

manuals maintained by the company.

1.5 LIMITATIONS OF THE STUDY

The Travancore cements Limited consists of five major functional departments and

fifteen sub departments. Covering the entire areas of the department is a very difficult task as there were

limitations in time. Some of the data were treated confidential and hence it was difficult to get the same.

In addition most of the data’s were collected through interviews and so the information is subjected to the

bias of the individuals.

CHAPTER 2

PROFILES

2.1 INDUSTRY PROFILE 2.1.1 Cement Industry In India

Cement industry in India has made significant contribution to country’s economic

development. This is because most of the development activities involve construction works, which

makes use of cement. It is an indigenous industry with local raw materials.

In 1904, the first cement industry was started. It was in Tamil Nadu. Since then, a number of

factories manufacturing cement were started.

In our country there are 51 companies and 99 plants having installed capacity of manufacturing

700 million KN of cement. With this capacity, the Indian cement industry is the fifth largest in the world

after China, Russia, Japan and USA. Indian cement industry accounts for about 4% of the world

production.

Some of the important highlights of the Indian Cement Industry can be stated as follows:

1. The average capacity per kiln works out to be less than 17000 KN / day for the dry process

systems and 4000 KN / day for the wet process system.

2. The energy consumption is substantially higher than that in the plants abroad.

3. The protection activities require improvement and updating.

4. The new technologies i.e. high efficiency separators, roll processors, vertical roller etc. have been

introduced.

5. The per capita consumption in India is about 5 tonne, which is almost 1/4th of the world average.

6. The requirements such as better packaging materials, bulk containers and ready mix concrete

technology deserves attention.

The origins of Indian cement industry can be traced back to 1914 when the first unit was set-up at

Porbandar with a capacity of 1000 tonnes. Today cement industry comprises of 125 large cement plants

and more than 300 mini cement plants. The Cement Corporation of India, which is a Central Public

Sector Undertaking, has 10 units. There are 10 large cement plants owned by various State Governments.

Cement industry in India has also made tremendous strides in technological up gradation and assimilation

of latest technology. Presently, 93 per cent of the total capacity in the industry is based on modern and

environment-friendly dry process technology. The induction of advanced technology has helped the

industry immensely to conserve energy and fuel and to save materials substantially. Indian cement

industry has also acquired technical capability to produce different types of cement like Ordinary Portland

Cement (OPC), Portland Pozzolana Cement (PPC), Portland Blast Furnace Slag Cement (PBFS), Oil

Well Cement, Rapid Hardening Portland Cement, Sulphate Resisting Portland Cement, White Cement

etc.

Cement industry in India is currently going through a consolidation phase. Some examples of

consolidation in the Indian cement industry are: Gujarat Ambuja taking a stake of 14 per cent in ACC,

and taking over DLF Cements and Modi Cement; ACC taking over IDCOL; India Cement taking over

Raasi Cement and Sri Vishnu Cement; and Grasim's acquisition of the cement business of L&T, Indian

Rayon's cement division, and Sri Digvijay Cements. Foreign cement companies are also picking up stakes

in large Indian cement companies. Swiss cement major Holcim has picked up 14.8 per cent of the

promoters' stake in Gujarat Ambuja Cements (GACL). Holcim's acquisition has led to the emergence of

two major groups in the Indian cement industry, the Holcim-ACC-Gujarat Ambuja Cements combine and

the Aditya Birla group through Grasim Industries and Ultratech Cement. Lafarge, the French cement

major has acquired the cement plants of Raymond and Tisco.

2.1.2 Issues Concerning Cement Industry

High Transportation Cost is affecting the competitiveness of the cement industry. Freight

accounts for 17% of the production cost. Road is the preferred mode for transportation for

distances less than 250km. However, industry is heavily dependant on roads for longer distances

too as the railway infrastructure is not adequate.

Cement industry is highly capital intensive industry and nearly 55-60% of the inputs are

controlled by the government.

There is regional imbalance in the distribution of cement industry. Limestone availability in

pockets has led to uneven capacity additions.

Coal availability and quality is also affecting the production.

2.1.3 Outlook

Outlook for the cement industry looks quite bright. Given the sustained growth in the real

estate sector, the government's emphasis on infrastructure and increased global demand, it looks as if the

juggernaut of cement industry would continue to roll on the path of growth.

2.2 COMPANY PROFILE

The Travancore Cements Limited was incorporated in the year 1946. The year of commencement

of grey cement is 1949. The liscensed capacity of the plant is 50,800 Tonnes per annum. The master mind

behind the setting up of this factory was Late Sir. C. P. Ramaswami Iyer, who was the then Devan of

Travancore, and he realized the vital role of cement in the industrial development of Kerala. The company

was made with M/s F. L. Smidth & Co, Denmark. During 1959, the company diversified into the

production of white Portland cement. The capacity for the production of white cement is 30,000 Tonnes

per annum. Till 1974 the company was manufacturing both white and grey cement in the same plant,

disturbing the production of two over certain period in a year. Since 1974, the company started

manufacturing white cement alone, as the demand for white cement went up.

During the last 58 years of its existence, TCL has diversified its activities into related areas.

Besides super Shelcem brand cement paint, the company has added to its product range namely the

Sheltex Acrylic Emulsion paint and Shell prime cement primer.

The Travancore Cements Limited is the only manufacturer, perhaps in the whole world,

producing white cement from a raw material other than conventional lime stone. The main raw material

of TCL is the lime shell, which is dredged out of Vembanad Lake, one of the back waters in Kerala. The

company has successfully executed a diversification project for manufacturing grey cement during the

year 2000, with a capacity of 66,000 NIT per annum

2.2.1 History

The Travancore Cements Limited was incorporated in the year 1946. The year of commencement

of business was also 1946. The company started manufacture of Grey Cement in the year 1949. The

licensed capacity of the plant was 50,800 tones of Cement per annum.

The mastermind behind setting up of this factory was that of late Sir C.P. Ramaswamy Iyer, the

then Diwan of Travancore, who had realized the vital role of cement in the industrial development of

Kerala. The company was promoted by the state of Travancore, in association with Tamil Nadu. Later the

Government of Kerala acquired the company with a share of 51.33% and about 33.33% share with the

Super Pharma Private Ltd., which belongs to the company group. The share of the company has been

listed in the stock exchange of Cochin & Chennai.

The company was promoted by M/s Essel Ltd., Mumbai and Technology tie up was made with

M/s F. L. Smidth & Co. Denmark.

The Travancore cements Ltd. Is one of the first project making cement companies in Kerala.TCL

is the only public sector (Kerala Government undertaking), which manufactures and market white cement

and cement paints.

During 1959, the company diversified into the production of white Portland cement. The installed

capacity for the production of White Cement is 30000 tonnes per annum. Till 1974, the Company was

manufacturing both White Cement and Grey Cement in the same plant, distributing the production of the

two, over certain periods in a year. In 1974, the company switched over to the exclusive manufacturing of

White Cement, as the demand for White Cement went up and the government of Kerala took over the

management of the company which was firstly under private management. At that time it had monopoly

over the marketing.

During the last 54 years of its existence, TCL has diversified its activities to related areas by

adding ''Vembanad' brand ordinary Portland cement, 'Super Shelcem' brand Cement Paint and 'Shelprime'

dry Cement Primer besides 'Sheltex' Acrylic Emulsion Paint for interiors and exteriors to its products

range.

The Travancore Cements Limited is one of the only two companies in the world manufacturing

White Cement from a raw material other than conventional limestone. The other company is in South

California, U.S.A. The main raw material of TCL is lime shell, which is dredged out of Vembanad Lake,

one of the backwaters of Kerala; hence the brand name is ‘Vembanad White Portland Cement.’ As it does

not contain any magnesium oxide, the White Cement made out of lime shell is highly durable and

superior in quality.

The Travancore Cements Limited employed the wet process technology on the fully imported

machinery of F. L. Smidth & Co. Denmark. Wet process facilitates total homogenization of raw materials

and thus ensures high consistency in quality. As a result of this, Vembanad White Cement is having higher

whiteness, durability, strength and quality.

2.2.2 Location

The cement plant of TCL is situated on the bank of Kodoor River and on the side of the State

Highway, M.C. road, and 4km away from the town of Kottayam in Kerala. The typical Location of the

plant makes it accessible by road as well as by water.

2.2.3 Milestones

Started the production of Vembanad Grey cement from lime shell in August 1949.

Started production Vembanad White Cement from lime shell in 1959

Grey Cement production stopped in 1976.

Diversified into Cement paint- Super Shelcem production in 1977.

Celebrated Silver Jubilee in 1982.

Became a Government Company in April 1989.

Celebrated Golden Jubilee in 1997.

Launched Dry Cement Primer 'Shell prime' in January 2000.

Diversified into Acrylic Emulsion Paint Sheltex for exteriors & interiors in April 2000.

Diversified into Grey cement production from brought out clinker in 2000.

Became an ISO 9002 company in December 2000.

Company started an HRD center in 2002

Launched Vembanad Wall Care Putty in 2008

2.2.4Objevtive Of The Company

The main objective of the company is engaged in the production of Vembanad White Portland

Cement. It is the first and foremost product of TCL, which is the best white cement available in the

country in its quality. Now the company is also engaged in the production of cement paint known as’

Super Shelcem’, which is available in a wide range of colors of 24 shades.

2.2.5 Competitors

Super snowcem

Dukecem.

Surfacem.

Acc white cement.

Birla white cement.

J.K white.

2.2.6 Promoters Of The Organization

The company was run under the private management until 1974. Subsequently the government of

Kerala took over the management. Now the government is holding 50.13% of the equity share capital.

The Pyramid group of company is holding another 25% of shares and the remaining shares are held by

general public.

2.2.7 Vision And Mission Vision Statement

“To be a leader in the Indian Cement industry and providing customer delight and enhancing shareholders value.”

Mission Statement

Having a unique role in the Heavy Industry sector of the country, TCL is committed for catering

the society towards the specific need expected by producing quality product at a customer friendly price

while keeping sustained growth of the organization and total growth of the society.

To enhance the company’s shareholder value.

Employee satisfaction.

Revenue growth.

Strength supply chain management.

High volume, high market share, cost effectiveness in all segments.

High quality technology and superior products.

Consistent production through harmonious industrial relations.

Competitive advantage.

To widen the distribution network and strengthen the field service organization.

2.3 PRODUCT PROFILE

The Travancore Cements Ltd is producing four types of products and they are: White Portland cement

under the brand name “VEMBANAD” , cement paints with a range of 40 shades under the brand name

“SUPER SHELCEM”, cement paint primer under the brand name "Shel Prime", Emulsion paint

under the brand name "SHELTEX" and wall putty ender the brand name “VEMBANAD WALL

PUTTY”

1.Vembanad White Portland cements

. TCL manufactures the best white cement in the country and its quality is at par with that of

the best available in the world market. This can be attributed to the fact that Vembanad white cement is

manufactured using lime shells and it accounts for its superior whiteness as compared to other brands.

Today the company enjoys the highest 8042 e-1976 specification. White cement is quick drying; possess

high strength and superior aesthetic values. It is used for floor finish, plaster and ornamental works.

2.Super Shelcem Cement Paint

The Travancore Cements Ltd started manufacturing cement paints under the brand name

“Shelcem” during 1977. It was rebranded as” Super Shelcem” in 1986. Super Shelcem is a unique

technology formulation with the most durable “Vembanad” white cement. It is an intimate mixture of

Vembanad white cement, water proofing fungicides. Cement paint is water based paint widely used for

painting buildings, both components an oxide extender, non fading oxide pigments, hardening agents and

exterior interior. Shelcem, unlike other cement paints, does not require water curing after first and second

coat. Only initial wetting of the surface is necessary. This makes Super Shelcem ideal for exteriors of

multi storied buildings and sky scrapers. Super Shelcem carries ISI marks and is available in a wide range

of colours of total 40 different shades in the market.

3. Shell Prime Dry Cement Primer

In order to mark the new millennium, the Travancore Cements Limited launched a new

product, cement paint primer under the brand name "Shel Prime". It is a dry cement primer available

in 1kg. Packets. The range is Rs.25/Kg.

4. Sheltex Emulsion Paint

The company launched another new product "Sheltex" cement paint. It was launched in

April 2000. The basic raw materials include acrylic based pigments and bonding chemicals (Titanium

compounds). It is used for both exterior and interior painting purposes. The product is available in 2

packages 11 liters and 4 liters.

5.Vembanad Wall Putty

Vembanad wall putty has more coverage than any other dry wall putty in the market. The object

of the company will be to offer putty of the highest quality, giving the smoothest finish, highest coverage

and durability. It is available in 20 kg and 5 kg packing.

2.4 ORGANISATION STRUCTURE

When we look to this organization we can see it is consisting of different department and also

each department have departmental heads. The service manager is responsible for dredger, civil and

sanitary, water and general transport, workshop, and electrical departments. The production department is

responsible for the department of white cement plan, kiln, packing house, shelcem, lab and quality

control. The maintenance manager is responsible for marketing control, purchase and store and shelcem

department. The finance manager is responsible for the department of accounts. Finally the secretary is

responsible for the time office, personnel department, medical department, and office and guest house.

Organization Chart

Board of Directors

Chairman

Managing Directors

General Manager

Function Manager

Production Manager

Maintenance Manager

Company Secretary

Marketing Manager

Account Officer

Maintenance Engineer

Dy. Maintenance Manager

Personnel Officer

Marketing Supdt.

Staff Joint Manager

Store Supdt.

Staff Staff Observation

CHAPTER 3DEPARTMENTAL STUDY

DEPARTMENTS

Departmentalization is a method of arranging activities to facilitate the accomplishment of

organizational objectives. The organization process of determing how activities are to be grouped is called

department. The departments show the horizontal different of an organization.

The main departments are:

MARKETING DEPARTMENT

FINANCE DEPARTMENT

PERSONNEL DEPARTMENT

PURCHASE DEPARTMENT

PRODUCTION DEPARTMENT

OTHER DEPARTMENTS

The Board of Directors consists of five persons of which one is full time Managing Director.

Under the Managing Director we have: Service Manager, Production Manager, Maintenance Manager,

Financial Manager and Secretary. The service manager is responsible for departments of dredger, civil

and sanitary, water and general transport, workshop and electrical. The production manager is responsible

for the departments of white cement plant, kiln, packing house, Shelcem, lab and quality control. The

Maintenance manager is responsible for the departments of marketing control, purchase, store and

Foreman, Worker etc.

Staff

General Manager (Marketing)

Sales Representatives

Chief Manager (Cement Paint)

Administration

Junior Executive

Marketing Manager

Sales Representatives

Shelcem. The finance manager is responsible for the departments of accounts. Finally the secretary is

responsible for the time office, personnel department, medical department, and office and guest house.

3.1 MARKETING DEPARTMENT

Marketing Activities

TCL has a well established marketing department. There is an efficient sales force which is under

the Marketing Manager. The whole system comes under the General Manager. TCL has got 14 sales

representatives throughout Kerala.

Marketing Distribution Channels

Company Depots Stockiest Dealers Customers

Stockiest

Number of Dealers/Stockiest of TCL products

TCL has 30 Stockiest in Kerala.

TCL has 60 Stockiest for White cement in Kerala.

TCL has 300 Dealers for Paint in Kerala.

TCL has 2000 Dealers for White cement in Kerala.

TCL has 7 Stockiest for White cement in Tamil Nadu.

TCL has 50 Dealers for White cement in Tamil Nadu.

Sales Promotion

TCL has an advertisement budget of 25 lakhs per annum. Since the amount is too small

the company is advertising at low level. Other promotional activities include conducting dealers meetings

once in two years. In addition to these the company offers various incentive schemes for its dealers

according to their sales performance. Due to very low advertisement budget the company does not engage

in any large scale type of advertisement activities. The company occasionally engages in advertisement

through newspapers, magazines etc. The main modes of advertisement are displaying boards which are

positioned where they get maximum attention. They also use Asia net cable vision, wall painting etc. The

current year Board of directors allowed 50 lakhs for advertisement

Competition

The company is facing tough competition from the white cement from internal

manufacturers and also from imported white cement. JK White, Birla, RKC etc. are the major competitors

in the white cement sector. In the cement paint sector, there are about 14 brands to compete with Super

Shelcem. The major competitors are Durocem, Snowcem etc. The company’s new product Sheltex

Acrylic Emulsion Paint has only 5% market share and facing competition from majors like Apex, Excel

etc.

Reason For High Price

The production process of TCL is very old and it is known as WET process and is very

expensive. This is the only company which is using this old process. The other companies are using DRY

process. This is comparatively less expensive. So the other companies can reduce price. Another reason is

the raw materials particularly lime shell and white clay is scarce. So these products are priced very high

D i s c o u n t s A l l o w e d B y T C L

TCL gives trade discounts of 10% and cash discount of 4 % for purchase of 250 kg. and

above,thecompany allows 3% discount on freight allowances and 3% on special discount. In every three

months, the company gives 1% quantity discount for 200kg, 2% for 500kg.

Procedure For Marketing And Distribution

The company has been carrying out production oriented strategy because of the monopoly of the

Vembanad brand. With the entry of competition the need for marketing oriented strategy is analyzed. The

company was mainly depending on distributors in various regions.

TCL offers no credit facilities for white cement. It offers 45 day credit for cement paint. The

payment is made in advance by demand draft in case of white cement and by cheque in case of cement

paint. The company offers commission in the form of trade discount in their stockiest.

3.2 FINANCIAL DEPARTMENT

Board of Directors

Managing Director

Chief Manager Finance

Assistant Manager

Office Staff

The finance department maintains all the account’s of the various departments in an organization.

It is the duty of the finance department to receive money and make payments on behalf of the company. It

also prepares the annual budget according to which the expenses of the company are monitored. The

finance department is a vital part in an organization, as without finance the day to day activities of the

company will not function in a smooth and rapid way. It is the core of the organization. The cash section

and account section also forms part of finance department. The recording of day -to-day transactions

routine functions like sales tax, payments and receipts of cash, Cheque etc comes under the purview of

accounts section. The accounts section also undertakes the employee’s payroll function. The cash section

deals with the disbursement of cash.

Functions Of Finance Department

Financial forecasting and planning

Acquisition of funds

Investment of funds

Maintaining proper liquidity

Assigning the Chief Accounts officer and others

Accounting of all receipts and payments, cash at bank, sales etc.

Preparation of annual accounts and other periodical report and statements

Checking of wages and salaries

Regular payments of statutory dues like Provident Fund, Sales tax etc.

Furnishing necessary records relating to finance cash to Managing Director or Chief

Accounts Officer.

Financial Management is that specialized functions of general management which is related to the

procurement of finance and its effective initialization for the achievement of common goal of the

organisation. It deals with each and every aspect of financial activity in the business. It includes planning

and control of financial resources. It is also concerned with finding out various sources for raising capital

for the firm. The source must be suitable and economical for the needs of the business. The most

appropriate use of such funds also forms a part of Financial Management.

Finance is indispensable to facilitate efficient and effective operation of business enterprise. In

this context, effective financial management holds key to success in today’s highly competitive world,

modern financial managers are assigned five roles:

Planning of funds

Raising of funds

Allocation of funds

Control of funds

The finance department consists of Chief Manager, junior manager and Office Assistants. The

accounts of Tcl are controlled through the budget presented and passed by the Annual General Meeting of

the TCL. The Accounts department prepares Trial Balance, Profit & Loss A/c and Balance Sheet and

send it to the manager.

There are mainly three sectors of finance department of TCL. They are

1. Accounts Section

2. Finance Section

3. Cash Section

1. Accounts Section

The most important task done by accounts section is the recording of day to day accounts.

Routine accounting functions like sales tax payment, receipts and payment of cash; cheques etc. come

under the preview of the accounts section. The employee payroll function is also undertaken by the

accounts section of the finance department.

2.Finance Section

Finance section is mainly concerned with the maintenance of accounts. The various financial

statements are kept in the computer as well as in the manual form.

3. Cash Section

The cash section is concerned with the disbursement of cash.

Duties Of Finance Department

i. Overall financial control

ii. Monitory decision making in consultation with Managing director

iii. Finalization of accounts

iv. Budget preparation

v. Control overall matters relating finance in the organisation

The accounts and finance departments have to ensure that the salaries due to the employees are paid in

time. The department is also concerned with the preparation of budget and budgetary control of the

concern. The department has to ensure that all the entries are properly posted in the books of accounts.

The main accounts that are kept by the accounts department:

i. Cash book

ii. General ledger

Scope Of Financial Management

It can be summarized as follows:

a) Estimating financial Requirements

The first task of a Finance Manager is to estimate short term and long term financial requirements

of his business. For this purpose, he will prepare a financial plan for the present as well as for the future.

The amount required for purchasing fixed assets as well as needs of funds for working capital have to be

ascertained. The estimations should be based on sound financial principles so that neither there are

inadequate nor excess funds with the concern. The inadequacy of funds will adversely affect the day to

day working of the concern whereas excess funds may tempt the management to indulge in extravagant

spending for speculative activities.

b) Deciding capital Structure

Capital Structure refers to the kind and proportion of different securities for raising of funds.

After deciding about the quantum of funds required, it should be decided which type of securities should

be raised. It may be to arise finance through long term debts Even here if gestation period is longer, the

share capital may be most suitable. Long term funds should be employed to finance working capital.

Entirely depending upon over drafts and cash credits for meeting working capital needs may not be

suitable. A decision about various sources of fund should be linked to the cost of raising funds. If cost of

raising funds is very high, then such sources may not be useful for long. A decision about the kind of

securities to be employed and then proportion in which these should be used is an important decision

which influence the short term and long term financial planning of the enterprise.

c) Selection Of Sources Of Finance

After preparing a capital structure, an appropriate source for finance is selected. Various sources

from which finance may be raised include share capital, debentures, financial institutions, commercial

banks, public deposits etc. If finances are needed for shorter period, then banks, public deposits and

financial institutions may be appropriate, on the other hand, if long term finances are required, and then

share capital and debentures may be useful. If the concern doesn’t want to tie down assets as securities,

then public deposits may be the suitable source. If the management doesn’t want to dilute ownership, the

debentures should be issued in preference to shares. The need, purpose, object and cost involved, may be

the factors influencing the selection of a suitable source of financing.

d) Selecting a Pattern Of Investment

When funds have been purchased, then decision about investment pattern is to be taken. The

selection of an investment pattern is related to use of funds. The funds with have to be spent first on fixed

assets and then an appropriate portion will be retained for working capital. While selecting a plant &

machinery, even different categories of them may be available. . The decision making techniques such as

capital budgeting, opportunity cost analysis etc. may be applied in making decision about capital

expenditures. While spending on various assets, the principles of safety, profitability and liquidity should

not be ignored. A balance should be struck even in these principles. One may not like to invest on a

project, which may be risky, even though there may be more profits.

e) Proper Cash Management

Cash management is also an important task of finance manager. He has to assess various needs of

the company at different times. He has to make arrangements for cash. Cash may be required a) to

purchase raw material b) to make payment to creditors c) to meet wage bills d) to meet day to day

expenses.

The usual source of cash may be a) cash sales b) collection of debts c) short term arrangement

with banks etc. The cash management should be such that neither there is a shortage of it nor it is idle.

Any shortage of cash will damage the creditworthiness of the enterprise. The idle cash with the business

will mean that it is not properly used. Cash flow statement is regularly prepared so that one is able to find

out various sources and applications. All these information will help in efficient management of cash.

3.3 PERSONNEL DEPARTMENT

General Manager

Chief Manager

Junior Manager

Managing Director

Functions Of Personal Department

To maintain good relationship between the employees

To look into the welfare of the employees

To maintain leave register

Attendance making

Overtime confirmation

It is the department that is connected to other departments in TCL. This department is headed by

Joint General Manager. Under him Joint Chief Manager followed by Junior Executive and Office

Assistants. This department does the recruitment and selection of the personnel. Another important

function of the personnel department is to look into the welfare of its employees. Time office comes

under this department. The function of the time office is to maintain leave register, attendance making,

over time confirmation etc. The above data is forwarded to the accounts department for accounting the

wages of the employees.

Recruitment & Selection

Workers

The workers are selected through PSC test and physical test. Every worker is liable to be

transferred from one department to another and one job to another according to the experience of work in

the factory.

Office Assistance

Office Staff

Recruitment of office staff is done through direct application and through employment exchange.

Selection is mainly based on written test and interview. But it is also done according to the discretion of

management. Selected persons will have to undergo training, which is usually six months.

Managerial Level

Recruitment for managerial level is done through direct application and through employment

exchange. Selection is mainly based on written test and interview. Selected persons will have to undergo

training for more than one year.

Salary And Wages

Salary and wages paid to the employees are determined on an agreement between CMI and Trade

Union. In TCL pay revision is done every 4 year.

Leave Pattern

There are 14 days of casual leave and 12 days of sick leave. For non staff workers 18 days of

privilege leave are allowed and for Officers it is 30 days.

Trade Unions

The recognized trade unions in the company are :

1. The Travancore Cement Workers Union AITUC

2. The Kerala Cement Labourers Union CITU

3. The Kottayam Cement Employees Union INTUC

4. The Kottayam Cement Employees Congress

Working Conditions

Proper working conditions are maintained. Facilities like bathroom, toilets are provided

at all plants and in offices. Rest rooms and seating facilities are provide

Canteen

A fair price canteen is operating at the premises. The employees are given Rs 25 per day of

attendance as canteen allowance and maximum of Rs 750 per month.

Transportation

Free transportation facility is provided to employees for coming and returning after duty.

Transportation facility is also provided to the children of the employees for attending the educational

institutions in and around Kottayam.

Quarters Facility

A limited numbers of employees are provided with quarters with free electricity and water. Very

nominal rents are charged for them.

Educational Allowance

The company provides this facility for the children of permanent employees. They are getting an

amount of Rs. 300 a month.

Recreation Facility

Recreation facility for indoor games like shuttle, badminton, carroms etc. are provided. Reading

room facility is also provided with newspaper and periodicals; television is also provided with cable

facility

Welfare Facilities Provided By The Company

There were several welfare measures provided by the company. Now TCL is running under huge

loss. So the company is not able to provide the benefits to the employees as in the earlier years.

They were provided with the following benefits:

Uniform

Footwear allowance

Umbrella

Raincoat

Washing soap & toilet soap

Turkey towel

Medical reimbursement

Company scholarships

Tour programmers

Factory day compliment

Special advance

Two wheeler / Cycle loan

Car/ computer loan

Work schedule

The office time of TCL is from 9.00 a.m. to 5.00 p.m. on working days. On Saturdays, office time

is till 1.00 p.m.

The factory is working on shift basis.

There are 3 shifts in the factory.

1st shift: 12 midnight to 8.00 pm.

2nd shift: 8.00 am to 4.00 pm

3rd shift: 4.00 pm to 12 midnight

H R D C e n t e r

A s p a r t o f I S O s p e c i f i c a t i o n , o n e H R D c e n t e r w a s e s t a b l i s h e d f o r

t r a i n i n g w o r k e r s

Employees Strength(As on 01.01.2009)

Total staff = 136 male + 31 female = 167

Total operatives = 286 male + 26 female = 312

Total strength = 479

Officers = 26

Casual workers = 5

Grand total = 510

3.4 PURCHASE DEPARTMENT

General Manager (Operation)

Joint Chief Manager (Purchase)

Junior Manager (Purchase)

Junior Executive Officer

Office Assistants Office Assistants

Functions Of Purchase Department in T C L

Placing order

Inviting quotations

Correspondents

To perform the functions effectively, the purchasing department has to follow the following

procedure.

a. Purchase Requisitions

The purchase officer does not initiate any action for purchasing of materials on his own record.

With the help of purchase requisitions, the purchase officer come to know the types of materials needed

by the organization. A purchase requisition is a from used as a formal request for the purchasing

department to purchase materials.

b. Exploring The Sources OF Supply & Selecting The Supplier

A source of supply of materials is to be selected after the receipt of purchase requisition. In TCL,

the process of choosing the supplier is not a hard task. The store keeper generally mentions the name of

current suppliers, their price quotations and the purchase department also has a series of good suppliers.

Choosing the right supplier from the suppliers list involves a process of comparative statement of

purchases. It is a statement prepared by the purchase department.

c. Purchasing Order

After choosing the supplier, the purchase department prepares the order for the supply of stores.

The order is a written authorization to the supplier to supply the particular material or materials. It is the

evidence between the buyer and the supplier having the terms and conditions of the purchasing order.

d. Receiving & Inspecting Materials

In large concerns, a separate receipt & inspection department independent of stocking location

should be set up to receive and inspect the materials. But in small concerns, the work is done by the store

keeper. In TCL, the stores department makes the general purchase only. When goods are received in

stores, the consuming department is informed and the personnel’s from this department come to stores

and inspect the quality, quantity etc.

e. Checking & Passing Bills Of Exchange

After checking, the bills are passed. Generally, the payment terms of TCL are

Against invoice or acceptance of stock a minimum 15 days credit

In case of monopoly suppliers, they are sent or paid through banks.

Advantages Of Purchase Department In T C L

1. Because of centralized purchasing of materials, favourable terms like trade discount or

economic in transportation cost can be obtained, because quantity will be large.

2. The purchase department is staffed with highly paid officials who are experts in the art of

purchasing the material. Specialized knowledge and skill of these persons can be utilized.

3. All records with regard to purchase department is kept under the supervision of the purchase

officer.

4. This department helps in achieving uniform purchasing policies, practices and procedures.

5. It avoids duplication of efforts and is helpful in achieving standardized products.

Vendor Selection

The TCL has a main list of suppliers for all items it have to purchase. The company invites

tenders through advertisements in the newspapers. The suppliers give quotations and after a detailed study

of the concerned department, the supplier should be selected and the order is placing.

Vendor Rating

A vendor is rated according to his monopoly in the market, brand equity of the products, his

established dealings with other reputed organizations. There is a vendor evaluation committee which

evaluates the vendors. The committee consists of officers from concerning finance and material

departments. Vendor who is rated below 50% will be removed from the lists. Vendors rated between 50%

& 75% are advised to improve their quality.

Vendor Re-evaluation Rating

The suppliers of raw material who are re-evaluated periodically by the company.

i Vendor supplying all raw materials for white cement and cement paint.

ii Packing material

iii Critical spares and machinery

General Manager (Operator)

JCM Production & Service

Dy. Manager (Kiln)

Junior Executive)

Machine Operators

Junior Manager

Charge Hands

Senior Machine Operator

Helpers

PRODUCTION DEPARTMENT

Functions Of Production department

The production department is the heart and soul of the TCL. It is here that white cement and

cement paint are produced. The uniqueness of white cement products is that produced from the lime shell,

extracted from Vembanad Lake. This gives the cement much more whiteness compared to other brands.

The major raw material is lime shell.

The production department is the heart and soul of TCL. The company produces white Portland

cement and cement paints. The production and service department controls and coordinates the

production process. The production can be divided into three stages namely: The slurry preparation,

Clinker making and grinding. The numbers of workers employed in these stages are 75 with 17 in shift

basis.

Production Process Of VEMBANAD White Cement

The raw materials used for the production of white cement are lime shell, white clay, white sand

and gypsum. The basic cement making process consists of collecting the raw materials, grinding them to a

fine stage, blending them to a uniform composition and heating them to the point of incipient fusion when

the cement compounds are formed. Portland cement is the product obtained by cooling and grinding the

clinker thus formed with gypsum to a fine powder.

Raw materials

Vembanad white cement is manufactured from nature’s gift of rare raw materials which are

unique in consistent purity. The company is using high quality raw materials and net process in order to

maintain quality of its products. The main raw materials are lime shell, white sand, white clay and crystal

gyps.

a) Lime Shell

The main raw material lime shell is procured from under water deposits of Vembanad Lake.

Chemical analysis of lime shell reveals that almost 99% accounts for calcium carbonate (CaCO 3). While

the presences of usual impurities like iron and magnesium compounds are negligible in significance.

Vembanad white cement has the distinctive feature of being the only cement that is manufactured from

lime shell.

b) White Clay

White clay or crude china clay is obtained from southern parts of Kerala, particularly from

Trivandrum District. These white clay deposits are known for their purity and high ceramic properties.

The milky white clay, which is in paste form, that go in to manufacturing process of Vembanad white

cement, is almost 85% pure Hydrated Aluminum Silicate.

c) White Sand

The white sand is obtained from coastal areas of Chertala in Kerala which accounts for purity up

to 95%.

d) Gypsum

Helps to restore the setting action of cement and enhances the initial setting time of cement.

Stages Of Production Process

Preparation of slurry

Clinker making

Clinker grinding

There are nine different processes under the main stages. They are

Dredging

The main raw material for the production of Vembanad White Cement is lime shell an under

water deposit in Vembanad lake, is dredged and brought to the company by means of power barges. The

company has two dredgers, one hydraulic dredger named Lokanathan of 5000 galloon capacity and one

mechanical dredger, Rudger of 2000 galloons capacity. The dredger can cut the lime shell around 40 ft.

maximum depth. The dredger works on two powerful engines, a dredger pamper engine and an auxiliary

engine.

i Dredger Operation

`The dredger is placed anywhere in the lake using a spud which is then at lowered position while

the other spud is at the raised position. The cutter is about 10m. in length. It can cut the shell to a

maximum of 40 ft. from the water level. For the purpose of cutting, the cutter is placed downwards by

using a winch when spud 1 is centered which is loosened and the cutter moves in clockwise direction.

Similarly when the spud 2 is centered, the cutter moves in anticlockwise direction and cut the shell. After

primary washing, the shell is transferred to the barge.

ii Unloading

The shell dredged is brought to the plant in barges through lake. Shell in barge is diluted

with about 60% of water by means of a diluting pump. A sucking pump draws water along with the shell

to the receiving tank near the rotary grill of the screening plant. The shell is then passed through the rotary

grill and waste materials are washed out during its rotation. Cleaned shell is either passed to the belt

conveyors through hoppers or stored outside depending on the requirement of raw materials for the

process. There are two rubber conveyors [Conveyor 1 – short & straight, Conveyor 2 – long & inched for

conveying shell to the ball mill hopper.

iii Wash Mill

Before actually used for process, clay is mixed with water. This work is done in a wash mill.

Clay is put into the mill and about 65% of water is also added during grinding. During the work in the

wash mill, clay is made to slurry and is pumped to storage tank known as silo. From silo, it is taken when

the process is required.

iv Shell – Sand Grinding Mill

Slurry is a mixture of shell, sand and clay with 40% of water. For the preparation of slurry, two

grinding mills are used.

Roughing mill known as ball mill

Finishing mill known as raw mill

Ball mill is a cylindrical shell of welded metal plates.

The shell along with the required amount of white sand and water is fed to the ball mill by a

rotating feed table. When the mill rotates the materials are crushed down to small particles while it passes

through the ball. The materials coming out of ball mill is diverted to a hammer screen by means of a

slurry elevator. Fine material coming out of the hammer screen is fed to the raw mill. The coarse material

is returned to the ball mill for further grinding.

v Slurry Making (Raw Mill)

The raw mill is rotated by a motor at a constant speed while passing through the mill, the fine

materials discharged from ball mill and clay pumped from clay silo are finally ground and comes out as a

pasty material known as slurry which then flows to the slurry pit.

vi Slurry section

Slurry discharged from the raw mill is stored in silos by means of pumps. The chemical

composition of slurry will be adjusted at this stage. There are three silos for storing the slurry. From these

silos, slurry is pumped to the slurry basin. In the basin slurry is constantly agitated with compressed air &

stirring mechanism. From this basin, slurry is taken for burning in the kiln.

vii Clinker Making(Rotary Kiln)

Kiln is a cylindrical steel shell lined with refractory bricks mounted to base on roller supports so

that it can be rotated. The kiln is having a length of 285 ft. with diameter of about 9ft.

During the burning process, slurry passes through three stages.

Drying zone

Calcinations zone

Burning zone

viii Clinker Grinding

There are three cement mills A, B & C with clinker grinding capacity of 60 tonnes for A, 50

tonnes for B & C. The B & C mills are identical. During grinding, small quantity about 3 – 4% gypsum is

added. Gypsum controls initial setting time of cement.

ix Packing & Despatching

The white cement stored in the silos is packed in bags in the packing house. For the free flow of

cement from silo & hopper, compressed air is used. When the bag is filled with 50 kg, material discharged

from the spout is automatically transferred to the truck through a fixed- point belt conveyor and a

movable belt conveyor. The filled bags fall down from the spout to the wire net conveyor, will be

transferred to a truck through a fixed point belt conveyor and a movable belt conveyor.

Outstanding Qualities Of VEMBANAD White Cement

Brilliant whiteness

Lowest magnesium content

High strength

Super soundness

Setting properties

High durability

Ideal one for manufacturing cement paint

Machineries And Equipments Required For The Manufacturing Process

1. Dredging And Storage Of Lime Shells

Dredger

Diluting pump

Gravel pump

Receiving tank

Rotary filter

Conveyors

Storage tanks (Silos)

2. Processing Of Lime Shell, White Sand & White Clay

Water pump

Wash mill

Clay pump

Ball mill

Elevators

Lifting service

Slurry pump

Slurry silos

3. Processing Of Clinker

Rotary Kiln

High pressure screw pump

Hammer crusher

Shaking and bucket elevators

Clinker silos

4. Processing Of Cement

Cement mills

Belt and screw conveyors

Cyclone separators

Dust collectors

Air compressors

Cement silo

3.6 OTHER DEPARTMENTS

GENERAL STORS

MAINTENANCE DEPARTMENT

ELECTRICAL DEPARTMENT

QUALITY CONTROL DEPARTMENT

TRANCEPORTATION DEPARTMENT

PACKING HOUSE

WORKSHOP

DREDGING DEPARTMENT

SECURITY DEPARTMENT

CEMENT PAINT DEPARTMENT

TIME OFFICE

3.6.1 GENERAL STORE

Store keeper

Assistant store keeper

Helper

Purchase Manager

Store keeper

Assistant store keeper

Helper

Functions Of General Stores Department

To store the raw materials for different departments

To prepare the purchase order

To prepare the stores records such as Bin card and Karade - X card

General stores is the department for storing the raw materials. The materials are collected as per

the order made by the department, which is known as purchase order.

Advantages Of Centralized Stores In T C L

Better control can be exercised over stores because all stores are housed in one

department.

Better layout of stores is possible.

Investment in stock is minimized.

Economy in cost.

Economy in staff and concentration of experts in one department will lead to

development in high technical skills.

Less botherisation in inventory checking as all the stores are located in one place.

Stores Records

The Bin card and Karade – X card are the two important stock records that are kept in TCL for

making a record of various stores.

1. BIN CARD

A bin card makes a record of the receipts and issue of materials and is kept for each item in the

stores. Quantity of materials received are entered in the receipt column and the quantity of stocks issued

are recorded in the issue column of the bin card and the balance of the quantity of stock is taken after

every receipt or issue , so that the balance can be seen readily at any time. A bin card is usually hanged up

or placed in shelf, rack or bin where the materials have been kept.

2. KARADE X - CARD

Sweeper

This card is used in TCL by store keeper in addition to the bin card for storing the list of stock of

items. TCL doesn’t maintain a stores ledger now, instead of this all the details are stored using software in

the computer. The existing system is a FoxPro based system.

3.6.2 MAINTENANCE DEPARTMENT

The company has 1 workshop under the control of the mechanical maintenance department. All

machinery works and repairs are undertaken in the workshop.46 members are there in the workshop.

Mechanical section

All the mechanical works are undertaken by the mechanical section of the maintenance

department. The company has a workshop under the control of this department. Total number of workers

in the mechanical section is 72, out of which 4are charge hands and a foreman and an attender. The rest

include officers and other skilled workers.. There are 6 section of maintenance (workshop).

1. Welder - 1 senior & 8 welders.

2. Blacksmith - 1 senior & 3 others.

3. Automobiles - 1 senior & 3 others.

4. Marine engineering section -1 senior & 4 others.

5. Lathe section -1 senior & 8 others.

6. Fitter section - 2 senior & 13 others.

7. Tool Section -

8. Diesel Mechanic

Functions Of Maintenance Department

Operation of electrical equipments & machiner Maintenance of electrical equipments & machineries

Maintenance of equipments

3.6.3 ELECTRICAL DEPARTMENT

This department deal with all the works connected with the electrical equipment, power links and other

allied activities. Consumption of electricity per day is 20000 units. The electricity bill in a month is Rs 25

lac. If the plant is not working or functioning the company has to pay Rs 3 lac. This is a fixed charge set

by the government. The company has its own substation for power supply. The total number of

employees in the electrical maintenance section is 24, out of which 12 employees are concerned with

electrical maintenance of land and the other 12 undertake the maintenance work of the power plant. The

main activities undertaken in the electrical section of the maintenance department can be discussed as

Preventive maintenanceAnnual maintenance

Half yearly maintenance

Quarterly maintenance

Monthly maintenance

Fortnightly maintenance

Weekly maintenance

Daily maintenance

Hourly monitoring

follows, The electrical section undertakes mainly three types of maintenance works .They are:

1. Break down maintenance.

2. Preventive maintenance.

3. Shut down maintenance.

1. Break down maintenance

In case of any break down of the machineries in the production departments information

regarding the break down is given to the maintenance department, and subsequently maintenance workers

are sent to the production department to solve the machine failures.

2. Preventive maintenance

Under this activity, a team of maintenance workers is sent directly to the production plant

to check out whether there is any failure in the machinery or not.

3. Shut down maintenance

When the plant is shut down, the employees in the production department sent a letter to the maintenance

department to solve failures.

3.6.4 QUALITY CONTROL DEPARTMENT

Production manager

Junior Manager (Quality

control)

Junior Manager

( Lathe)

Functions Of Quality Control Department

To test the quality of raw materials

To whether the product involves the right proportion of raw materials

To maintain the quality of the products

Unlike other government organizations, where quality is secondary, at TCL quality is being given

the prime position. The ISO 9002 certification is a proof for enduring the quality commitment of TCL.

TCL has its own laboratory which continuously striving to maintain the quality of the products. There are

three levels of testing conducted in the laboratory. They are:

Junior executive (Lathe)

Assistant Chemist

Chief Gauger

Tester

Sample boy

Helpers

a) Raw material Testing

Raw materials are tested for ensuring the quality of products even before manufacturing.

b) Process Testing

Process testing is done before the grinding of lime shell, sand and clay.

c) Intermediate Testing

In this testing, slurry is tested for finding out whether it contains right proportion of lime shell,

sand and clay. Then slurry is taken to kiln for burning.

3.6.5 TRANSPORTATION DEPARTMENT

Chief Manager (M&E)

Deputy Manager

(Stores)

Transport Spurned

Charge hand

Functions Of The Department Staff conveyance

Free transportation facilities are given to the staff to come to the office. For the purpose the

company has two buses of their own. It is available to workers in all shifts.

Transportation facilities to employees’ children

As a welfare measure, free transportation facilities are provided to employees’ children. For

bringing them to the schools in and around Kottayam, this facility is available.

For providing goods to customers

If a person purchases one of the products from the company, free transportation facilities are

provided for bringing the same and he will get it at the premises of his hous

3.6.6 PACKING HOUSE

Fitter

Barge crew

Packing house in charge

Assistant in charge

Supervisor

Fitter

Packer

Here cement is drawn from storage spoils and packed in the paper bags by automatic machines

and dispatched.

3.6.7 WORKSHOP

Functions

Maintenance of machinery parts

Helpers

Foreman

Officer

Charge hand

Repairing of spare parts, pipe line, oil line, vehicles etc.

The company has one workshop under the control of the mechanical maintenance department.

The maintenance and repairing of machinery spare parts, pipe line, oil line, vehicle etc. are undertaken in

the workshop. Fitter, Automobile section, Diesel mechanic section, Welder, Turner, Blacksmith,

Carpenter, Khalasis, Tool section are the nine different sections in the mechanical maintenance

department.

The repairing of machinery spare parts, pipe line, oil line etc. and the machineries related with

plant are undertaken in the workshop. Dredger and barge is also repaired here in this department. If any

fault occurs in the running plant, workers from this department will be sent there.

There are 80 employees working in different sections of the workshop as welders, fitters, blacksmith,

carpenter etc.

3.6.8 DREDGING DEPARTMENT

The main raw material for the production of Vembanad White Cement is lime shell an under

water deposit in Vembanad lake, is dredged and brought to the company by means of power barges. The

company has two dredgers, one hydraulic dredger named Lokanathan of 5000 gallion capacity and one

mechanical dredger, Rudger of 2000 gallions capacity. The dredger can cut the lime shell around 40 ft.

maximum depth. The dredger works on two powerful engines, a dredger pamper engine and an auxiliary

engine.

Dredger Operation

The dredger is placed anywhere in the lake using a spud which is then at lowered position while the other

spud is at the raised position. The cutter is about 10m. in length. It can cut the shell to a maximum of 40

ft. from the water level. For the purpose of cutting, the cutter is placed downwards by using a winch when

spud 1 is centered which is loosened and the cutter moves in clockward direction. Similarly when the

spud 2 is centered, the cutter moves in anticlockwise direction and cut the shell. After primary washing,

the shell is transferred to the barge.

3.6.9 SECURITY DEPARTMENT

The department is mainly concerned with the security and control of the company. There are 28

employees working in the security department on shift basis.

3.6.10 CEMENT PAINT DEPARTMENT

Super Shelcem is a self curing cement paint manufactured by the TCL. It is an intimate mixture

of Vembanad White Cement. Water proofing components, an oxide extender, non fading oxide pigments,

hardening agents and fungicides. It contains more White Cement than any other Cement Paint in the

country. Super shelcem, unlike other cement paint doesn’t require water curing after first and second coat.

Only initial wetting of the surface is necessary. This makes Super Shelcem ideal for exteriors of

multi storied buildings and sky scrapers. For interiors too, super shelcem is ideal since tedious curing

after removing furniture can be avoided which means saving of labour as well. Super shelcem carries ISI

marks. It is available in a wide range of colours. There are a total of 40 different shades / colour available

in the market that is produced by TCL. Once a wall is painted with Super Shelcem, it looks and stays

good for years unaffected by weather and fungal atta

3.6.11 TIME OFFICE

Time Office comes under the personnel department. The main function of the office is to

maintain attendance register and calculate the monthly working hours of each employee. The company

follows punch card system for measuring attendance.

CHAPTER –IV FUTURE STUDIES

4.1. FUTURE EXPANSION

The company plans some diversification schemes which will be implemented in the near future, which

includes the proposal to assist setting up of Enamel paint unit and textured coating under co-operative

societies. There are proposals to start a packing unit, the venturing of a project for the manufacture of

calcium nitrate and Dicalcium phosphate, shifting of the present technology to dry process technology,

reinitialize the production of grey cement. Other proposals include export of white Portland cement to

Srilanka, Gulf countries, South Africa and Mauritius. The company has a bright future

4.2. PRODUCTION PATTERN

The company plans to make some changes in the existing production system because of the un

availability of shells. Still now the company is producing the product through dredging the shell from the

near by Lakes and River.But now the the shell is un available in there.So they are planning to make the

product from limestone it will purchase from out side.

STRENGTHS

As TCL is a government owned firm, it enjoys privileges granted by the government.

Standard quality products are produced here.TCL is the only white cement manufacturer in the world to

manufacture cement from natural lime shell, and it uses wet process technology for cement production.

Therefore the product maintains high quality.

Only company which uses the natural lime shell for manufacturing white cement

Standard quality products

Good training system

Good organizational climate

TCL is a government owned firm, it enjoys privileges granted by the government

High market share

WEAKNESS

Very low budget for advertisement, influence from government and political parties, sales

representatives are less, surplus labour, lack of transportation facility, scarcity of main raw material lime

shell , old machines etc. can be traced as the weakness of the company.

Company is running on loss

Poor advertisement

Sales representatives are less

Lack of transport facility

No credit facility

Dealers dissatisfied with credit facility

There is no proper mechanism to handle customer grievances

Influence from government and political parties

OPPORTUNITIES

The company should opt for psycho graphic segmentation of the market, where more stress

should be given to the quality and fitness of the product. It should expand the distribution network to

those markets where the competitors are more powerful. It can compete in the national market supported

by good advertisement.

Compete in the national market if there is good advertisement

Liberalisation demand for cement paint

Company introduces promotional programmes

THREATS

High competition

Liberal policy of other brands

Promotional programmes of other brands

Complicated national market

Good replacement of other brands

FINDINGS AND SUGESSTIONS

FINDINGS

Most employees of the organization are favoring to rescue the company; from shutting down

in near future.

Since the cost of Lime shell is very high for the company: should look for other material like

limestone.

The company should plan more regional meeting. Still the rural areas of kerala are not

covered under the market network of TCL.

Sales and trade promotion activities should be carried out as a support and supplement to

advertising effort.

Replacement of existing outdated machinery with latest sophisticated and technology based

ones.

The company spends more money for advertisement and sales promotion. It will help to

increase brand awareness and image.

The company concentrates on market in and out of kerala, where it is competitors are more

powerful.

5.2 SUGGESTIONS

The company should spend more money for advertisement and sales promotion. It will increase the brand awareness and image.

The company should concentrate on market where its competitors are more powerful. The company should adopt the new technologies. Providing better labour – management relationship. Find new sources for raw materials (limeshell).

CONCLUSION

TCL Kottayam is one of the pioneers in the white cement industry. TCL is an ISO

9002 certified company, which was certified by Bureau of Indian Standards (BIS). This shows company’s

consciousness towards high quality production. But the company is making a recovery from this by the

utilization of better opportunities and making further diversifications. Now the company is going through

loss. Because of less availability of raw materials like lime shell and the cost of the furnace oil, which is

used for the WET technology, is decreased.

The study provided useful insights into the company and its functioning. It is worth that the company has

done a great task in the provision of cement products to cater the needs of construction in a big way. TCL

happens to be the only manufacturer of white cement with lime shell as its main raw material. With the

implementation of a new technology, improving the marketing strategies, and solving the existing

problems, the company is ensured of bright prospects.