CHAPTER 1

INTRODUCTION

1

Organizational studies examine how individuals construct organizational

structures, processes, and practices and how these, in turn, shape social relations

and create institutions that ultimately influence people. Organizational studies

comprise different areas that deal with the different aspects of the organizations,

many of the approaches are functionalist but critical research also provide

alternative frame for understanding in the field.

This organizational study was done in partial fulfillment of the requirement for

the award of the Master of Business Administration at TRAVANORE COCHIN

CHEMICALS Ltd. The main objective of the study is to understand the concept

of organization and the working of the various departments during the particular

period.

1.1 OBJECTIVES OF THE STUDY

The objectives of the study are:

To understand the key business processes which are carried out in the

organization.

To understand the organizational structure and the working of the various

functional departments.

To have an exposure to the real life working environment of the

company.

To understand the overall performance of the company.

To understand the total hierarchy of the company.

To study the relevance of Travancore Cochin Chemicals Ltd. On

chemical industry field in Kerala.

To have a SWOT analysis on the company.

2

1.2 SCOPE OF THE STUDY

The study addresses the functioning of various activities carried out by TCC.

Our study was for 1 month and the study can be used for future reference and

also used for the better improvement of the organization’s performance.

The organizational study on TCC enables us to find out the correlation between

the management theory and the real life working situations. This study has gone

into the different aspects like its financial management, production

management, marketing management, etc.

The study also helped us to formulate a SWOT analysis on the company.

1.3 METHODOLOGY

The methodology used in this study include

PRIMARY DATA

SECONDARY DATA

PRIMARY DATA has been collected with the help of direct interviews with

the departmental managers, the workers associated with various works and

other employees in the organization. Also the data was collected by

observation method also.

SECONDARY DATA are those data which are collected with the help of

those data which are already prepared by others. This data has been collected

with the help of the company records, annual reports, journals, the official

website of the company and other internet sites.

3

1.4 LIMITATIONS OF THE STUDY

This is only a brief study about the organization, there were the following

limitations for the detailed study

There was a shortage of time for the full detailed study in the

organization.

Some of the main details which include the key areas of the business was

not revealed

Some of the sites of work were restricted to access, so we could not have

a study on these areas.

The information provided by the responders could not be checked

whether true or false

It was very difficult to meet the top level officials of the company.

4

Chapter 2

INDUSTRY PROFILE

5

The world economy is developing. This development is accompanied by

the development of various industries as well. A wide variety of products are

coming into the market. These products require many chemicals in the course of

its production. Apart from the production process, chemicals also form a major

constituent of the product. Hence many chemical industries producing a wide

range of chemicals have come up. A chemical industry can be defined as a

company that produces industrial chemicals. This industry utilizes chemical

processes such as chemical reactions and refining methods to convert raw

materials—such as oil, natural gas, air, water, metals, and minerals—into more

than 70,000 different products.

Salt is one of the oldest and most popular condiments. What is relatively

unknown, is that salt is also the raw material for one of the most potentially

profitable chemical industries in the country-Chlor alkali. The Chlor alkali

industry in India is around 60 years old. It began with a modest capacity of a

few thousand tons per annum.

The Chlor alkali process is an industrial process for the electrolysis of sodium

chloride solution (brine). Depending on the method, several products besides

hydrogen can be produced. If the products are separated, chlorine and sodium

hydroxide (caustic soda) are the products obtained. For each tons of caustic

soda, 860 kg of chlorine and 25 kg of hydrogen will be produced. Some amount

of Chlor produced is combined with hydrogen to make hydrochloric acid.

Caustic soda, hydrochloric acid and chlorine are the basic chemicals and are

used by almost all industries. Chemical Industry is highly heterogeneous with

following sectors like petrochemicals, inorganic chemicals, organic chemicals,

bulk drugs, agrochemicals, paints and dyes and foreign trade.

6

The production has become increasingly concentrated in multinational

corporations which have plants and offices in a number of countries. Many

basic chemicals are produces in developing countries by factories of

multinational firm. But chemicals requiring advanced production methods are

made in industrialized countries.

2.1 INTERNATIONAL SCENARIO

The world Chlor-alkali industry is growing. Most major chemicals used are the

basic chemicals, which is used in the production of fertilizers and other

chemical compounds.

The production has been concentrated in many plants and offices in a number of

countries. To achieve low cost of production, the companies locate their

factories in the developing countries where raw materials are readily available.

But chemicals which require advanced production methods and technologies are

located in industrialized countries.

During the 1970‘s Caustic Soda was manufactured by utilizing the mercury cell

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

was produced by amalgam process. But this technology consumes a lot of

energy and power. There was a problem of mercury pollution also. It was

during the same period due to the mina Mata disease resulting from the Mercury

pollution, the Japan Government issued a direction to all caustic soda plants to

change over to other process under a time bound program. This paved the way

for the development of Ion Exchange Membrane Cell (IEMC). This process

apart from totally avoiding Mercury, consumes 30% less power compared to the

conventional process of mercury cell technology.

In the international scenario, the increase in population has lead to increase in

consumption and hence, increase in production. There has been increase in the

production of paper, aluminum, soaps and detergents. All this has caused a rise

in demand for caustic soda. Global warming is on its rise over the past couple of

7

decades. The Green Peace Movement was seeking the phase out of chlorine

usage, especially the CFC (chlorofluorocarbon) compounds. This has resulted in

the closing down of many chlorine producing plans in Europe and restricted the

production in North American plants, with a drop in its production. But the

price of caustic soda has been rising in the world market. The caustic soda was

being sold at $50 per tones. But now it has gone up to $300 per ton.

The international market has been operating in the context of demand and

supply. Situations of shortage and surplus are cyclic as a result of which

international price is common. The worldwide caustic soda consumption is

estimated at about 65 million tons per year. The further rise in demand for

caustic soda is awaited particularly in Northeast Asia as well as India, owing to

increased consumption from key application areas such as alumina and pulp &

paper industries. China is the world’s largest caustic soda producer, with a

capacity that reached 32 million metric tons last year.

Large volumes of caustic soda are used in the manufacture of alumina as well as

pulp & paper, altogether accounting for almost 30% of global demand. Other

uses include soap and detergents, petroleum products, as well as organic and

inorganic chemical production. Northeast Asia has become the major exporting

region of caustic soda in the world, with Australia and Latin America the major

importing destinations.

Chlorine production is one of the largest sectors within the global chemical

industry. According to the American Chemistry Council, 50 million tones are

produced worldwide on an annual basis (mostly through the electrolysis of

sodium chloride brine solutions to form chlorine gas).Major manufacturers

include Dow Chemical, Olin Corporation, Occidental Chemical and PPG

Industries. The vast majority is used to make plastics and chemicals for the

agricultural and manufacturing sectors, but about 5%, or 2.5 million tons a year,

is used for water treatment. At an average price of $550/ton, that amounts to

almost $1.4 billion in yearly spend.

8

2.1.1 MAJOR COUNTRIES PRODUCING CAUSTIC SODA USA France

Russia China

India Japan

Germany Canada

2.1.2 MAJOR COUNTRIES PRODUCING CHLORINE

United States Canada

Brazil Japan

China India

Spain UK

2.2 INDIAN SCENARIO In India caustic soda is produced by electrolytic process. The manufacture of

caustic soda started during 1940‘s. The growth was rather slow during 1960‘s

but after that the growth picked up substantially. Today there are 38 industries

manufacturing caustic soda. Of which 40 are organized sector and the rest

belong to the unorganized sector. The total installed capacity of all these units

put together comes to about 17, 50,000 tones/annum. Indian Chlor-alkali

industries follow membrane cell technology mostly. This is highly beneficial

because cell membrane technology is more efficient when compared to

mercury cell technology.

India was a net importer of chemicals in early 1990s, but has now become a

net exporter due to implementation of many large scale petrochemical plants

9

like Reliance, ONGC etc. and also because of tremendous growth of exports in

sectors like bulk drugs and pharmacy, pesticides, dyes and intermediates.

2.2.1 Major South Indian Chlor-Alkali Units

Chemplast, Tamil Nadu

DCW, Tamil Nadu

BILT, Karnataka

Chemfab Alkalies Ltd., Pondicherry

Southern Petro Chemical Industries Corp. Ltd, Chennai

Kothari Petro Chemicals Ltd, Chennai

TCC Ltd., Kochi

2.3 STATE SCENARIO

Caustic Soda is one of the basic inorganic chemicals manufactured from

common salt. The Travancore Cochin Chemicals Limited, Udyogamandal is a

State Public Sector Undertaking owned by Government of Kerala. In Kerala

TCC Ltd. is the only Chlor – Alkali industrial unit. Reflecting the quality policy

of commitment and excellence TCC has a good track record of profitable

operation and healthy industrial relations. A heavy chemical industry engaged

in the manufacture and marketing of Caustic Soda, Chlorine and allied

chemicals. The installed capacity of TCC is 175 tons per day caustic soda and

the products are used in manufacturing of soaps, textiles, plastics etc. There are

many small-scale industries in the state, which consumes caustic soda for the

production of soaps, plastics and textiles.

In view of the high transportation cost and hazardous nature of chemicals

transported, the caustic soda industry in the state is more localized and the

consuming units have come nearer to the manufacturing unit. Also because of 10

the high transportation cost, it is not possible to export caustic soda in large

volume from the state.

2.4 TCC SERVING THE NATION

TCC is employing 786 persons directly and many more indirectly. Its products

find extensive use in manufacture of day to day consumable articles. Chlor-

alkali products are basic chemicals used in the manufacture of plastic, paper,

textiles, insecticides and pharmaceuticals. Many chemical industries in the state

depend on TCC for supply of caustic soda Hydrochloric acid, Chlorine & Soda

bleach.

11

Chapter 3

COMPANY PROFILE

12

3.1 ABOUT THE ORGANISATION

The Travancore Cochin Chemicals Ltd, popularly known as TCC Ltd, is a state

owned public sector undertaking by the Government of Kerala. TCC is situated

at Udyogamandal, Cochin. Incorporated in 1951, TCC is the oldest Chlor-alkali

unit in the country and also is the only Chlor- alkali unit in the state of Kerala.

TCC is a chemical industry and manufactures products like caustic soda,

chlorine, hydrochloric acid, soda bleach and related chemicals. TCC was also

the first company in India to install the mercury cell plant for the manufacture

of caustic soda.. With continuous efforts for up gradation of technology and

professional management the company has a good track record of operation and

healthy industrial relations. TCC is also an ISO 9001: 2000 certified company.

The company supports a large number of industrial units by supplying basic

chemicals. TCC is conscious about its social responsibility and is dedicated to

maintain the quality of products.

3.1.1 HISTORY AND GROWTH OF TCC

The Travancore Cochin Chemicals Ltd was established in 1951 and started

commercial production in 1954. Initially it had an installed production capacity

of 20 tones of caustic soda per day. The technology employed was mercury cell

technology. The idea of establishing the unit was conceived by M/s Shehasayee

Brothers, the managing agent of FACT. The company was registered under the

name Travancore Mettur chemicals (TMC) in 1950 as a joint venture between

FACT and Mettur Chemicals. The idea was to supply hydrogen chloride gas to

FACT for making Ammonium Chloride for their newly set up ammonia plant.

As it was post second world war period, TMC could not raise sufficient fund to

13

take delivery of equipments arrived in Cochin port. Knowing that Chlor alkali

industry is being set up to other companies (M/S Hindustan Insecticides Ltd and

Indian rare earths Ltd) have started setting up their plants at Udyogamandal

with the hope to get Chlor alkali product for further processing.

The financial problem of TMC was taken up by the then Travancore Cochin

state Government. As the problem of TMC could affect three other companies,

Travancore Cochin State Government gave massive financial assistance to

TMC and with that the company was renamed as Travancore Cochin Chemicals

Ltd (TCC) in 1951. Commercial production started in 1954 with 20 tons per day

caustic soda production capacity. The technology employed was mercury cell

technology. The installed capacity was increased stage wise to 160 TPD

employing mercury cell technology. In 1997 TCC commission a 100 TPD

caustic soda plant employing membrane cell technology from Asahi Glass

Company, Japan. In 2002 the capacity of AGC plant was enhanced to 125 TPD.

In 2004 the last mercury cell plant was decommission. In 2005 and 2006 a 25

TPD capacity membrane cell plant each were installed and plants were supplied

by M/s Uhde Company, Germany. The total installed capacity at present is 175

TPD of caustic soda. Travancore Cochin Chemicals is the first unit in India to

produce Rayon grade Caustic soda. The company has implemented a number of

technical renovations to improve productivity of the plant.

3.1.2 PRESENT SITUATION

TCC is the only Chlor alkali unit in Kerala. In India, there are about 40 Chlor-

alkali units as the company‘s competitors. Now TCC owes 109 acres of land

and more than 700 people are working in three shifts. Plants are functioning in

full capacity. Plants function on a 24x7 basis. The company has helped in

attracting new industries to Kerala. These industries include Indian Rare Earth

Ltd, Hindustan Insecticides Ltd, Hindustan News Print Ltd, Kerala Minerals

14

and Metals Ltd etc. These industries depend on TCC for the supply of the basic

chemicals.

At present the company having the installed capacity of 175 TPD of caustic

soda. 125 TPD from M/s ASAHI GLASS COMPNAY, Japan, commissioned in

1997. 25 tons per day bipolar membrane cell caustic soda plant supplied by M/s

UHDE Germany was commissioned in July 2005 and another 25 TPD

membrane cell plant from UHDE, Germany was commissioned in August 2006.

The registered office and the factory of the company is situated at Eloor,

Udyogamandal -683501, Ernakulam Dist, Kerala. Company has obtained an

ISO certification 9001-2001 in the year 2006. The company is working towards

ISO 14000 standards currently.

Table 3.1.1: PRESENT CAPITAL FORMATION

INVESTORS SHARE (%)

Govt. of Kerala 80%

KSIDC 17%

FACT 2%

Vinyl Investment Ltd, Chennai 1%

Total 100%

3.1.3 INFRASTRUCTURE

The company is conveniently situated at Udyogamandal, industrial area, Kerala.

It is situated on the banks of Periyar River and hence has abundant supply of

water. Out of the 109 acres of land on which TCC is situated, 20 acres are

leased out to M/s BSES Kerala Power Ltd. TCC receives lease rent on this. In

addition to the plant and buildings, it has a full fledge housing colony for the

accommodation of its employees. The company also has a water treatment plant

from Periyar River. This water treatment plant has a capacity of 5mgd. For

electricity supply, TCC also has a 110 KV electricity substation. The company

15

has also now lent out some land for an ISRO project, which uses the chemicals

which are made in the company for the production of fuels for the rockets.

3.1.4 CORPORATE MISSION AND VISION 3.1.4.1 Mission

TCC is committed to supply quality chemicals at competitive prices to

customers. Customer satisfaction, concern for environment and safety are their

priorities.

3.1.4.2 Vision

Utmost level of conversation of all resources including energy

Cost effectiveness in all operations.

Regular up gradation of technologies used in processing

Compliance with laws and statutory regulation.

Capacity up gradation by another 50 TPD

3.1.5 CORPORATE OBJECTIVES

1. To produce and market chemicals such as caustic soda, liquid chlorine,

hydrochloric acid carefully and in environmentally sound manner.

2. To make maximum profit from projects taken up.

3. To continuously upgrade the quality of Human Resource of the company and

promote organizational development

4. To continuously improve the plant and operational safety and abide by the

statutory pollution control standards

5. To ensure corporate growth by expansion and diversification.

6. To care the environment around.

16

7. To maintain optimum level of efficiency and productivity and optimum level

of investment.

3.1.6 POLICIES FOLLOWED BY TCC

3.1.6.1 Quality Policy

“We are committed to enhance customer satisfaction by providing

products and related services complying with a continually improving quality

management system.”3.1.6.2 Health and Safety Policy

TCC is committed to provide every one of its employees and the related

public an accident-free and healthy environment in its efforts to

manufacture high quality products at competitive prices. The company

will comply with all statutory requirements in this regard.

The company will provide a work environment in which identified

hazards are controlled, if elimination is not feasible and will provide

personal protective equipments wherever necessary.

Accident prevention is the direct responsibility of the Line – Management

and will be an important criterion for performance appraisal. Line –

Management will ensure that all safety measures are incorporated in the

operating and maintenance procedures as well as in any process

technology changes in the plant/infrastructure.

Consideration of health and safety will be given proper weight age in

selection and deployment of the personnel.

The company will ensure that health and safety aspects are given due

consideration in decision regarding purchase of plant equipments,

machinery and materials.

Every employee of the company shall perform his/her job adopting Safe

and proper work methods and using appropriate Safety equipments 17

understanding that their career advancement is linked with SAFE

performance.

Contractors, sub-contract workers, transporters and visitors entering the

factory shall be required to observe health and safety practices of the

company in all their activities.

All contract jobs will be carried only through the laid down procedures

with appropriate supervision.

The company will carry out safety audits, risk assessment studies,

emergency mock drills, and periodic assessment of health of its

employees as well as status place hazards be identified, appropriately

evaluated and effectively controlled to achieve this goal.

Appropriate training programs are designed and imparted to suit the

requirements of different groups namely, customers, contract workers,

drivers, cleaners.

Regular and periodic training is imparted to workers and officers in

batches in accordance with a prepared schedule.

Training on safety equipments and handling of hazardous chemicals is

imparted to the employees.

3.1.6.3 Energy Policy

Travancore-Cochin Chemicals is always committed towards the conservation of

energy by all possible means. They strive for:

Technological up gradation to reduce specific energy consumption

Conducting energy conservation studies including energy audit and

adopting the apt measures for conserving energy

Contacting other organizations and enriching our experiences on energy

conservation 18

Using renewable energy sources to the extent possible

Disseminating knowledge and information on energy conservation to our

employees

Low energy fuels also to be tried depending upon feasibility.

3.1.7 MANAGEMENT OF THE COMPANY

There are 10 directors for the company. As the major shareholder, Government

of Kerala nominates the BOD Professionals. The managing Director is the only

full time director in the board. The Principal Secretary of industrial Department

is the chairman.

Table 3.1.2: BOARD OF DIRECTORS

Shri.N.R.SubramaniamChairman & Managing Director

The Travancore-Cochin Chemicals Ltd

CHAIRMAN & MANAGING DIRECTOR

Shri K.S.Srinivas, IASSpecial Secretary to Government

Industries (Investment Promotion) DepartmentGovernment of Kerala

DIRECTOR

Shri. E.K. PrakashSpecial Secretary (Finance),

Government of Kerala.

DIRECTOR

Shri. M.R. Karmachandran, NOMINEE DIRECTOR KSIDC

Shri. Razin Rahman C.P DIRECTOR

Shri. Abdul Azeez Maniyoor, DIRECTOR

19

Table 3.1.3: STAGES OF GROWTH

195

6

A continuous caustic fusion plant with a capacity to upgrade up to

20 tons of caustic soda per day was set up.

195

8

A chlorine Liquefied plant was added mainly to meet demand from the

newly set up DDT plant of Hindustan Insecticides limited, Ernakulam

196

0

Production of caustic soda was raised to 30 tons per day

196

3

The caustic soda capacity was raised to new level of 40 TPD. The

company established a new unit for the manufacture of sodium hydro

sulphate with rated capacity of 30TPD.

196

7

The capacity of caustic soda plant was raised to 60TPD as per third stage

of expansion

197

0

A 60 TPD caustic soda CCF plant was set up along with its own water

treatment plant.

197

5

As the fourth stage expansion, a 100 TPD caustic soda plant was set up.

This employed Mercury Cell Technology.

197

6

The company set its own water plumbing and purification station

198

0

Export of commercial hydrochloric acid to Gulf countries

198

3

Installed and indigenously developed plant to cover mercury from

effluents

198

7

Installed hydrogen- firing system in continuous caustic fusion plant

199

0

Brine Decolonization units commissioned

199

2

A Research &Development section was set up

20

199

7

The company planned to setup a technology for the production of caustic

soda in collaboration with ASAHI GLASS of Japan, with a capacity of

100 TPD, using Membrane Cell technology.

200

0

The company set up a Brine purification plant

200

3

The company commissioned a new continuous Caustic Fusion plant and

increased the membrane cell capacity to 125 TPD.

200

5

The company commissioned a new caustic soda plant with a plant

capacity of 25 TPD- M/s UHDE (I)

200

6

The company commissioned a new caustic soda plant with a plant

capacity of 25 TPD- M/s UHDE (II)

At present total installed capacity is 175 tpd. Caustic Fusion plant for 100 tpd.

3.1.8 ACHIEVEMENTS

TCC is in the forefront to adopt and incorporate the latest technology in its

plants. Different innovative and modern schemes were implemented over the

course of time. Hence TCC continue to be the competitive strength in the Chlor-

alkali industry. With expanded plants and higher production capacity, TCC has

come out to be the profitable public sector undertaking. TCC has bestowed with

various awards for excellent performance with regard to production,

productivity, energy conservation and environmental protection, which is

considered as an award for commitment rather than for efficiency.

Table 3.1.4: ACHIEVEMENTS

YEAR ACHIEVEMENTS

1981 Best Performance Award for Safety in the State from Directorate of

Factories & Boilers, Government of Kerala

1988-89 Best Pollution Control Award under group "Heavy Inorganic Industries"

in Kerala, from Kerala State Pollution Control Board

1989 Award for Best Performance in Safety in India under "Chemical

21

Industries" group from National Safety Council.

1989-90 Prize for Productivity from Kerala State Productivity Council.

1993 Best Performance award for Energy Conservation in the State of Kerala

under group "Chemical & Fertilizers – above 3000 KVA" from

Government of Kerala

1994-95 Best Performance award for the Productivity in the State of Kerala under

group "Large Industries" from Kerala State Productivity Council

1995-96 Best Performance award for Productivity in the State of Kerala under

group "Large Industries" from Kerala State Productivity Council.

1998 Best performance award for Energy Conservation in the State of Kerala

under group "Major Industries" from Energy Management Centre, Govt.

of Kerala.

1998 Performance award for Energy Conservation under group "Chlor-alkali

Sector", Ministry of Power, Government of India.

2003 Kerala State Energy Conservation Award (2000) in the category of Large

Scale industry

2005 National Energy Conservation Award "Chlor-alkali Sector"

2008 “Pollution Control” award from Kerala State Pollution Control Board

3.1.9 BANKS State Bank of Travancore

State Bank of Hyderabad

Union Bank of India

Indian Overseas Bank

ICICI Bank

3.1.10 TRADE UNIONS 3.1.10.1 Recognized trade union

TCC employees association

22

3.1.10.2 Unrecognized trade union

Thozhilali union

AITUC

BMS

TCC employees union (INTUC)

3.1.11 PRODUCT PROFILE

Caustic soda, Chlorine and Hydrochloric acid form the backbone of chemical

industry. These are the main chemicals which are produced in TCC. TCC‘s

main raw materials are common salt (sodium chloride) electricity and water.

The company requires about 3700 units of electricity and 2 tones of salt per

tones of caustic soda produced. Common salt is mainly imported from Gujarat

and Tamil Nadu. Major products are the following.

3.1.11.1 Product-1

Caustic Soda (NaOH)

Caustic soda is a basic alkali. It came into being in the latter half of 19th century

with the development of electrolysis. Caustic soda Lye, obtained from

Membrane Cell is a clear colorless, odorless and soapy liquid. TCC is producing

two types of Caustic Soda Lye of concentration 30-33% and 50%.

USES

A chemical for dissolving out extraneous matter from wood

For preparing pure cellulose and for the preparation of Alkali

cellulose and for the production of viscose solution

As specification agent

In bleaching, dyeing and mercerizing.

For processing monazite and refining of Bauxite.

A purification agent and absorbent for acidic gases

23

A clearing agent

For refining petroleum fractions

Reagent for production of various organic chemicals.

INDUSTRIES SERVED

Rayon

Paper

Soaps

Textiles

Mineral and rare earth elements

Fertilizers

Heavy Chemicals

Engineering

Drugs& Pharmaceuticals

Petroleum refining

3.1.11.2 Product-2

Chlorine (Cl2)

Chlorine, a product obtained in the manufacturing process of Caustic soda is an

equally important basic chemical. It is renowned water purifying chemical. It is

greenish yellow gas. Chlorine as sold after liquefying.

USES

Producing insecticides (DDT, BHC etc.) and pesticides like Aldrin

In purifying drinking water and sterilizing sewage effluents.

For manufacturing PVC & allied co-polymers

As a bleaching agent

24

For producing chloramines & it organic derivatives

For upgrading titanium content in limonite

INDUSTRIES SERVED

Insecticides

Water purification

Plastics

Paper& pulp

Textiles

Sugar

Mineral processing

3.1.11.3 Product-3

Hydrochloric Acid (HCl)

TCC also produces high purity Hydrochloric acid, it is yellowish green colour.

The HCl produced have concentration 30-34%

INDUSTRIES SERVED

Fertilizers

Minerals

Ossien

Starch Industry

Plastic

Engineering

3.1.11.4 PRODUCT -4

Sodium hypochlorite: 25

Sodium Hypochlorite, known as soda Bleach, finds its application in

bleaching& disinfectant and also in the extraction of rare earth chemicals. It is a

pale yellowish green colour liquid. Soda bleach is the only branded product that

company producing, brand name is “Eko clean.”

USES

As a bleaching agent

As germicide& cleaning agent

For sterilization

INDUSTRIES SERVED

Textile

Paper industry

3.1.11.5 PRODUCT-5

Caustic soda Flakes

Caustic soda Lye is fused to product Caustic Soda flakes. There is a continuous

caustic fusion plant that produces Caustic soda flakes. It is white deliquescent

solid in flakes form. Caustic soda flake have concentration 98.99%.

26

3.2 ORGANISATIONAL STRUCTURE

Fig 3.2.1: ORGANIZATIONAL STRUCTURE

D

27

MD

GM GM

AGM (M) T)DGM (PJ) DGM (TS) AGM (HR)DGM (E)DGM (OP)AGM (MT) DFC

DFM2)

DFM3M

DFM(1)C))

AGM (E)

CE(PJ2)SAOSAO

CE (PJ1)MPL2MPL1SAO

CE(MPCE(M) CEUCE(C)MSTMP

A PRO

M (HR&W)

DM(M))))

DM(C) DM (MP)MIC

MO CSO DM(S)

AGM (TS)

AAO

DM (U) DM (CS)DM(PR2)

SE(MP)SE(M)SE(C)

DM (PR1)

ASO

CE (TS)APO

DMP Ex.TR (M) Ex.TR

SE (U)SE2SE1

DM (TS)

Ex.TR

APO SE (TS)

The organizational structure involves arrangement of activities and

assignment of personnel to these to achieve organizational goals. It is a way by

which various parts of an organization are tied together in a coordinate manner

and it illustrates the various relationship among various levels of the hierarchy

within the organization as well as horizontal relationship among various aspects

of the organizational operations. As well planned organizational structure

results in better use of resources.

The main functional departments are

Operation department

Marketing department

H R D department

Finance department

Project Department

Engineering department

Electrical and Instrumentation department

28

Ex. .TEx ..T

3.3 FUNCTIONAL AREAS

3.3.1 OPERATIONS DEPARTMENT

Fig 3.3.1 Operations Departmental structure

Operations department is the most important department of TCC. This

department carries out the manufacturing of all the products. The company

29

Assist. General Manager Operations

Manager Plant1 Manager Plant2

Executive Trainee

Deputy Manager Production 2

Deputy Manager Production 1

Executive Trainee

Senior Engineer Operation 2

Senior Engineer Operation 1

carries out continuous production and hence this department plays a very crucial

role in TCC. This department is headed by Manager Operation, who is reporting

to the General Manager Technical.

3.3.1.1 DUTIES AND RESPONSIBILITIES OF ASSISTANT GENERAL

MANAGER

Head of operations department

Fixes the monthly target according to the market operations

AGM is the designated emergency controller during any hazardous

incidents of leakage and emission of toxic gases/fluid etc.

He has the administration control over the operations department.

3.3.1.2 DUTIES AND RESPONSIBILITY OF PLANT MANAGER (PLM):

The custodian of the plant.

Plans production activities to meet the production target set by the AGM

He is responsible for the material consumption

He plans the shut down activities and carries out the maintenance work of

the plant.

He coordinates the operation functions with the manager of other

departments for the smooth functioning of the plant.

3.3.1.3 OBJECTIVES OF OPERATION DEPARMENT

Maximizing production confirming to product specification

Optimizing the consumption on electricity and purification chemicals

Maximize the availabilities on electrolyses operation

Minimize the production overheads

30

3.3.1.4 EVOLUTION OF TECHNOLOGY

Ist Generation: Diaphragm cell Technology

TCC started with this technology. It consists of an anode, cathode and

diaphragm. Anode portion and cathode portion is separated by an asbestoses

diaphragm. The main drawback of this technology is that it gives NaOH having

concentration only 15%. This technology was replaced by Mercury Cell

Technology by 1964

IInd Generation: Mercury Cell Technology

Here Mercury was used as cathode and Titanium as anode. It gives caustic soda

with 50% concentration. But the main draw backs are high energy consumption

and pollution. Because of pollution problem this technology have removed

completely and replaced by membrane cell Technology by 1990s.

IIIrd Generation: Membrane Cell Technology

This is the latest technology being used now. It started from 1997. The ion

exchange membrane cell plant is equipped from 20 electrolyses consist on three

clocks on monopole fitter press type electrolyses and it corresponds to three

electrolyses. The electrolysis consists of copper cathode and titanium anode

chambers separated by in ion exchanges membrane made of tetra fluro ethylene

and vinyl ether.

3.3.1.5 PLANTS IN TCC

Three plants are involved in the production.

AGC Plant

It is designed and commissioned by ASAHII Glass Company Ltd., Japan. The

plant was commissioned on 29th May 1997. The products are caustic soda

31

(NaOH), commercial hydrochloric acid (HCl) and liquid Chlorine. It consists of

20 electrolyses.

Table 3.3.1: Major products and production capacity

Products Capacity

NaOH lye 170TPD

Liquid chloride 90 TPD

Commercial HCL 150 TPD

Sodium hypochlorite 40 TPD

Caustic soda flakes 100 TPD

UHDE II Plant

The plant is designed by UHDE infrastructure Ltd, Germany. The plant was

commissioned on 2005. The plant produced only 25 TPD of 32% caustic soda

lye. It consists of only one electrolyser with 54 elements.

UHDE II Plant

The plant is designed by UHDE infrastructure Ltd, Germany. The plant was

commissioned only 15th August 2006. This has also a production capacity of 25

TPD of 32% NaOH lye with one electrolysis with 54 elements.

3.3.1.6 RAW MAERIALS USED

The raw materials used in the production in TCC are

Common salt

Electricity

Water

32

Fig 3.3.2 PRODUCTION PROCESS FLOW DIAGRAM

3.3.1.7 TECHNOLOGY USED FOR THE PRODUCTION OF TCC

The technology used in TCC is the membrane cell technology which is the

latest technology. 33

RAW SALT

BRINE SOLUTION

BRINE PURIFICATION

ELECTROLYSIS

CHLORINE

CHLORINE

TREATMENT

CHLORINE

LIQUIFICATION

LIQUID

CHLORINE

HYDROGEN GAS

HYDROGEN

TREATMENT

HCL SYNTHESIS

COMMERCIAL HCL ACID

32% CAUSTIC

SODA

CCF PLANT

SALE

DECOMPOSITION

DECHLORINATION

3.3.1.8 PROCESS FOLLOWED

The process followed for the production in TCC is electrolysis of brine.

3.3.1.9 PROCESS DESCRIPTION

Preparation and purification brine (solution of raw salt and water) are common

for AGC, UHDE I & UHDE II plants.

The stages on production processes are:

1. Brine preparation and primary braise purification

2. Secondary brine purification

3. Electrolysis

4. Chlorine treatment and liquefaction

5. Hydrogen treatment and HCL synthesis

6. Continuous Caustic Fusion

7. Soda bleach preparation

3.3.1.9.1 Brine Preparation and Primary Purification

Sodium Chloride or salt is fed into the saturator using bucket elevators, where it

gets mixed with water. This solution of required concentration goes to

precipitation tank A& B and a mixer tank where chemicals like barium

carbonate, sodium carbonated and caustic soda are added to remove sulphates,

calcium , and magnesium impurities. The solution then goes to the clarifier

where 90% of the precipitates are allowed to settle. The clarified brine is passed

through Anthracite filters where 10% precipitates are separated.

34

HCL is added to the filtered brine tank to convert impurities to ionic form. At

the suction of filtered brine pump sodium bisulphate solution is added to

remove the chlorine content and caustic soda lye is added to make the pH

between 8.5 & 9.5. Brine is to be admitted to the secondary purification system

only after the desired purity level is attained.

3.3.1.9.2 Secondary Brine Purification

The secondary brine purification system consists of four ion exchange filters.

The primary purified brine is passed through the ion exchange filters where it

undergoes ion exchange process .Ion exchange materials are insoluble acids and

bases, which when converted to salts remain insoluble.

The most popular ion exchange materials are synthetic organic polymers. These

ion exchange materials are used in columns in which solution containing ionic

impurities likes calcium and magnesium is in contact with the resin usually

through downward flow through the resin bed. The saturated resin is then

regenerated to its original state by using acid and alkali solutions. The

regenerated resin is then reused. The purity of the feed brine in the Membrane

cell process is very important and it affects the performance and life of the

membrane.

3.3.1.9.3 Electrolysis

The secondary purified brine is fed to the brine head tank after cooling and is

admitted for the electrolysis. De-mineralized water is also admitted to the

electrolyser. Direct current (DC) supply is connected to the anode and cathode

and current is applied to the electrolyser. During electrolysis, caustic soda is

produced at the cathode, which is of 32% concentration. Hydrogen gas is also

formed in the cathode chamber. Chlorine is formed in the anode from where the

depleted or weakened brine solution also comes out. Caustic Soda is pumped

into storage tanks, hydrogen and chlorine goes to the respective treatment

sections.

3.3.1.9.4 Chlorine Treatment and liquefaction

35

Chlorine treatment involves cooling, washing, filtration, drying, compression,

storage and filling. The chlorine from the anode chamber of electrolyzes is first

cooled to 30 o C with cooling tower water. A final trace of salt is removed by

using a wet chlorine filter; it is then again cooled to 1oC. After this, the chlorine

is separated for the HCL synthesis and liquefaction.

The chlorine is compressed using acid ring compressors. The compressed

chlorine passes to a liquefier where it is cooled using a refrigeration system in

which Freon is used as refrigerant. The chlorine turns into a liquid from and are

stored in liquid chlorine storage tanks. The filling of chlorine into cylinders of

capacities 1 tones, 100Kg etc is done at the liquid chlorine filling station, using

dry compressed air. Chlorine for the HCL synthesis units is fed by using

chlorine blowers. Before this the chlorine is cooled. It is then fed into ovens

along with hydrogen for the synthesis of HCL acid.

3.3.1.9.5 HCL synthesis and hydrogen treatment

Hydrogen gas from the electrolyzes is washed with water in a washing chamber,

cooled to about 300C with a heat exchanger, and admitted directly to hydrogen

holder, after separating the condensate. The hydrogen gas is used for the HCL

synthesis and also a part as fuel in the CCF plant operation. Hydrogen for HCL

synthesis is fed to an oven using hydrogen blowers. Here it is burned in the

presence of chlorine. The resulting HCL gas is absorbed in water flowing down

the oven. The hydrogen holder has a pressure venting mechanism whereby the

excess hydrogen is allowed to escape to the atmosphere.

3.3.1.9.6 Continuous Caustic Fusion

Caustic fusion is done in CCF (continues caustic fusion) plant, CCF plant is

mainly for concentrating 32% NaOH Lye to 50% and 98-99% as flakes. The

32% NaOH Lye is stored in the main storage tank, a part of which goes for sale.

The remaining part of 32% passed through three evaporates. (EV1, EV2& EV3)

In 1st evaporates (EV1) the NaOH is heated using the vapors generated in EV2

and EV3. The stream from EV1 is then passed to EV2 and it is evaporated in

36

vacuum at 70-800C. Then it passed through a shell and tube heat exchanger and

the outcome will be 50% NaOH Lye. A portion of 50% NaOH lye goes for

sales. The remaining portion of NaOH lye is passed through EV3 and heated

using a eutectic mixture which containing 53% KNO3, 40% NaNO2 and 7%

NaNO3 and finally we get 98-99% NaOH as flakes.

3.3.1.9.7 Soda Bleach Preparation

Soda bleach plant, which is a part of AGC plant, is developed for the utilization

of excess and waste chlorine. Chlorine can‘t be disposed as a waste gas. So it

has to be absorbed and stored somewhere. Even though soda bleach is

considered as a side product, the main objective is the efficient and harmless

disposal of waste chlorine. A part of 32% NaOH lye and chlorine is used for the

preparation of soda bleach. The excess chlorine at the time of plants shut down

goes for soda bleach preparation.

3.3.1.10 IRON EXCHANGE MEMBRANE CELL PROCESS

For electrolysis, secondary purified brine is fed into the anode chamber and

purified water is fed into the cathode chamber. The reaction of the substance in

the electrolyses will take place upon applying DC current to the cell.

The electrolysis process in the cell starts with the salt solution (sodium chloride-

NaCl) being fed into the anode chamber of the cell. The electrolysis of sodium

chloride occurs, converting chloride ions into chlorine at the anode mesh.

Sodium ions move into the cathode chamber through the ion exchange

membrane. Generated chlorine gas flows up to the anode gas separator by the

driving force due to the lift effect. The chlorine gas is separated here and the

anolyte is recycled over as depleted brine. The depleted brine solution is

removed from the anode chamber through an outlet at its bottom. In the cathode

chamber, decomposition of water occurs, producing hydrogen gas and

hydroxide (OH-) ions. Hydroxide ions form caustic soda together with the

sodium ions from the anode side. The hydrogen gas and caustic soda gas flows

up to the cathode gas separator by gas lift effect. The caustic soda lye is recycles

37

through the circulation pipe. The membrane neither permits the movement of

chloride ions and NaCl diffusion to the cathode side, nor the transfer of the

hydroxide ion to the anode chamber. Transfer of these ions will result in loss of

current efficiency. Hydrogen ions if any, diffused from the cathode chamber to

the anode chamber will produce oxygen gas, hypochlorite and chlorate by

reaction with chlorine gas.

3.3.1.10.1 Advantages Of Membrane Cell Process

1. Flexibility in operations

2. High purity product

3. Reduces power consumption of membrane to 270 KW per hour compared to

4000 KW per hour of mercury cell

4. Lower cost and high tolerance for power fluctuations

5. Elimination of environmental pollution through the avoidance of the use of

mercury

3.3.1.11 WATER TREATMENT PLANT

The water supply consists of a pumping station at Edamula river side near

Kalamassery Bridge located near TCC colony, clear water reservoir and pump

house at the factory site and pipelines. The quality of water available from the

Edamula River is within the acceptable limits with respect to various parameters

except for PH correction and sterilization. It consists of coagulation,

sedimentation, filtration and chlorination process.

3.3.1.12 CCF PLANT

This plant has one of the most advanced technologies. It is suitable for the

production of export grade caustic soda flakes from NaOH solution, which is

generated in ion exchange membrane cell. It is designed for optimum low

energy consumption. The equipments and plant are proven to be safe in

operation.

38

Table 3.3.1.1: Types of machines used

NO MACHINE NUMBER OF MACHINE

1

2

3

4

5

6

7

8

9

10

11

12

MEMBRANE CELL

ELECTROLYSER

CHLORINE COMPRESSOR

HCL SYNTHESIS OVEN

CHLORINE LIQUIFIER

RECTIFIER

AIR BLOWER

AIR COMPRESSORS

WATER PUMP

BRINE PUMP

SALT ELEVATOR

BRINE SLUDGE FILTER

BOILER

20+2

3

6

2

4

4

6

3

4

4

2

2

39

3.3.2 MARKETING DEPARTMENT

Fig 3.3.2.1 Marketing Department Structure

TCC is the only Chlor-alkali unit in Kerala and hence it is more or less a

monopoly in Kerala market. However, nationwide there are around 40

competitors. TCC gives high importance for customer satisfaction. They

maintain close contact products. Type of market is buyer market. Marketing

department consists of two sections:

a. Office section

b. Issue section

All documentation works come under office section and all the work relating to

sales come under issue section. TCC adopts marketing strategy according to the 40

Deputy Manager Sales

Asst. Sales Officer

Asst. General Manager Marketing

product nature, market situation, demand for the product etc. TCC currently has

about 80% of the total market share in the state. Of the total production, 60% of

the goods are sold outside Kerala and 40% within the state.

3.3.2.1 Main Functions Of Office Section

Preparation of sales quotation, letters, amendments etc, maintenance of

sales officers register books and other necessary information

Preparation of sales budget, sales plan, monthly allotments etc,

correspondence with parties and follow up of routine and regular matters

Preparation of sales order, dispatch and delivery notes

Up keeping of all files up to date

3.3.2.2 Main Functions Of Issue Section

Preparation of schedule of dispatch and actual dispatch

Execution of sales offers

Advising parties about the dispatch effected

Maintenance of daily stock registers

3.3.2.3 Duties Of Deputy Marketing Manager

1. Directly responsible for the sales and distribution of the products.

2. Responsible for maintaining customer satisfaction.

3. Responsible for implementing the product policy.

4. Responsible for organizing and coordinating various aspects of marketing

including market research, sales forecast, advertising,

5. Sales promotion and transport.

6. DMM have crucial role in price fixation.

7. Responsible regarding after sale service and Complaint handling. 41

3.3.2.4Duties Of Marketing Manager (Sales)

1. Concerned with the office section of the department

2. Responsible for tender issue process.

3.3.2.5 Competitors

There are about 40 companies in India which are producing the same kind of

products that TCC in manufacturing. Of the 40 companies, 12 are concentrated

in the southern part of India. All these companies are private sector companies

except for TCC. Some of the competitors are:

1. Chemfab Alkalis Ltd, Pondicherry

2. Andra Sugar Ltd

3. DCW Ltd, Mettur

4. Kothari Petrochemical Ltd

5. Tamil Nadu Petro products Ltd

6. SPIC Chennai

7. Sree Royal Seema Alkalis, Andhra Pradesh

8. Chemplast, Mettur

9. Chemtab, Pondicherry

3.3.2.6 Customers

1. Kerala Water Authority

2. Hindustan Unilever Ltd

3. Hindustan Insecticides Ltd

4. Bharat Petroleum Ltd

5. Kerala Ceramics Ltd

42

6. Kerala Minerals and Metals Ltd

7. Hindustan Raw Earth Ltd

8. Steel Authority of India Ltd

9. Tamil Nadu Newsprint Ltd

10. Indian Oil Corporation

11. Indian Aluminium Company Ltd

12. Kerala Chemicals and Proteins Ltd

13. Travancore Titanium Products Ltd

14. South India Viscose Ltd

15. Karnataka Soap and Detergents

16. Hindustan Organic Chemicals Ltd

17. Grasim Industrial Ltd

18. Pigments India Ltd

19. Hindustan Newsprint Ltd

20. Binani Zinc Ltd

21. Travancore Rayon‘s Ltd

3.3.2.7 THE MARKETING MIX

3.3.2.7.1 Product:

Caustic soda is a basic alkali entering into the manufacturing of a host of

articles of daily use like soap, paper, textiles etc. The caustic soda industry

actually came into existence in the latter half of 19th century, with the

development of the electrolytic process. Chlorine, a co-product in the process of

making caustic soda is equally important for the manufacture of plastic, textiles,

insecticides etc. Hydrochloric acid and sodium hypochlorite are the other 2

products which are used for the manufactures of Ossian, extraction of raw earth

43

rutile etc. Chemical industries in the state, big and small, depend on TCC for the

supply of caustic soda, chlorine, HCL and soda bleach.

Product development:

“EKO CLEAN” is a sanitation product. It is used as a preventive chemical in

the present scenario against the various contagious diseases in the state. Eko

Clean is sodium hypochlorite. This product reaches the market either via direct

marketing or through government agencies.

Table 3.3.2.1: PRICE LIST

PRODUCT PRICE PER TONNE (Rs.)

CAUSTIC SODA

CAUSTIC SODA FLAKES

LIQUID CHLORINE

HCL ACID

SODIUM HYPOCHLORITE

25500

26500

9800

3000

4500

3.3.2.7.2 Pricing policy:

The Company has adopted differential pricing policy. The price is fixed through

negotiation for long term contracts. An open body named Alkali Manufactures

Association of India (AMAI) fixes the selling price for a particular period. Price

of the product is fixed by adding the production cost, excise duty, VAT and

freight charges. Tenders are issued to the customers with a price quoted and if it

turns out to be a lowest bid and satisfies the customers after the sales are done.

The major markets are Kerala, Karnataka and Tamil Nadu. Except caustic soda,

all other products are sold in South India. Long term contracts are being entered

with customers. Price concessions are given to long distance customers taking

44

freight element into account for transportation of the product, raw materials and

all other logistic purpose. Company has given contracts to outside agencies. The

contracts are made for each material and this is done on an annual basis.

3.3.2.7.3 Place:

Place is concerned with various methods of transporting and storing goods and

then making them available for the customers. Getting the right product to the

right place at the right time involves various distribution channels and systems.

Channels include direct selling to customers. There are no intermediaries as

such. For caustic soda, there are some agencies outside Kerala for marketing.

The entire marketing Functions are done from company office at

Udyogamandal and no marketing office outside the Company. All payments

take place through SBT (State Bank of Travancore).

3.3.2.7.4 Promotion:

All the products are industrial products. Since TCC is the only manufacture of

its product in the state, there is no real competition in the local market. The

customer are aware of the existence of the company and where and how to get

the products. Hence, there are not much promotional activities. Marketing factor

is price, which depends on the national and international price. The company

does advertise is some academic and trade journals. The promotional activities

include regular press releases, creation of documentation etc. Other promotional

channel includes the company website i.e. www.tcckerala.com.

3.3.2.8 ACTIVITIES OF MARKETING DEPARTMENT

Whenever a company places an advertisement regarding the requirement of

chemicals like caustic soda lye or flakes with the specification for the chemical

payment terms, quantity required, validity required, the companies that are

ready to supply viz., TCC, will send tenders to the required company. This is

known as a tender document. In a tender document mainly two documents are

specified:

45

a. Technical bid

This is the specification about the quality aspect of the product, how much

quantity can be given within a period as specified by the customer company etc.

These terms are well explained in the technical bid

b. Price bid

This is a part of the tender document which specifies the basic prices of the

company products. The document rate is given for bulk purchaser, payment

terms are also experienced. Along with the tender to the customer company, an

attractive Earnest Money Deposit (EMD) is also offered. This deposit is for the

purpose of assuring the customer company that if they accept TCC‘s offer,

certainly the product will be supplies to the customer. The deposit will be

refunded by the customer company after the purchase is made. The EMD is

attached only in the case of bulk purchase. After accepting the offer placed by

TCC, the customer company will place a purchase order. The purchase order

explains the details of the product, quantity, price etc. Sales order is placed and

will be verified by Deputy Marketing Manager. He makes arrangement in

respect of supplying product to the customer. The acceptance offer is usually by

selecting the lowest price.

3.3.2.9 SALES FORCE OF TCC

The sales force includes the Marketing Manager, Deputy Marketing Manager

and the employees in the department. The sales force is remunerated according

to the grade provided by the company. The sales force strategy is to motivate

the sales force and earn more sales for the company.

3.3.2.10 CREDIT POLICY

46

TCC has flexible credit policy. The companies which purchase above 200 tones

in a session are given 30-60 days credit. For 5-10 tones of purchase, ready

payment is to be made. The Marketing Manager and the Finance Manager

divided the companies for which the credit should be given and how much

credit has to be given. The Managing Director takes the final decision.

3.3.2.11 MARKET ANALYSIS

During the year 2005-06, the company achieved a record turnover of Rs.1.26

cores (including excise duty). This was due to higher production, increased

demand and better sales realization. There was recession toward the end of that

financial year but it was not reflected in TCC as the contracts were already

signed. As a result of the further recession, the company profit level was

decreasing. It has been determined that the company is on running on profits

again in this financial year.

3.3.2.11 OBSERVATIONS AND LIMITATIONS OF MARKETING

DEPARTMENT

The Marketing Department of TCC is structured as line organization. There is

no formal committee system existing in TCC. Products of TCC face a tough

competition in the market. The competitors are private companies. TCC is the

only Public Sector Undertaking (PSU) Company. In order to survive in the

market, market research is conducted to explore the new market and find out

new customers. Sodium hypochlorite, names as “Eko Clean”, is a cleaning

agent. It has been launched in the market. But there exists no proper system for

the promotion of this product. Eko Clean is a very promising product but proper

product awareness programs and sales promotion activities are not taken up.

Customer satisfaction trials are also not taken up. Due to the lack of market

analysis, there is no product innovation and hence TCC is unable to compete in

the market.

47

3.3.3 MATERIAL DEPARTMENT

Fig 3.3.3.1 Materials Department structure

Materials are important factors of production. The department plays an

important role in reducing cost and increasing profit. Materials department is

headed by Manager (Materials) and reports to DGMT. Going with the

technological change, it has computerized purchases and inventory control

system. The main materials used in the industry are given a 10 digit to avoid

complexities in handling it.

TCC have well defined materials department with three sections

1. Purchase section

2. Store section

48

Assist. General Manager Materials

Manager Purrchase

Deputy Manager Purchase

Manager Inventory Control

Manager Store

3. Inventory Control Section

3.3.3.1 PURCHASE SECTION

This section handles the purchase activities of the company. This department

procures various raw materials needed for production at the right time at the

right quality from the suppliers. If purchase value is more than 5 lakh,

notification should be given in any two newspaper and select the lowest bid

according to the verification by a committee, which includes purchases

manager, internal auditor and one person from finance department. If purchase

value is 5 lakh or less, purchase section itself can select the supplier either by

past experience or by the advice of the users of that particular material

Steps in Purchasing

Purchase intent: intender raises material procurement request to inventory

section.

If the material is not available, the form is send to purchase department

Enquiry: purchase department send enquiry to approved vendors

Receiving quotation: quotations are received and opened by committee,

which contain a member of purchase department, one from finance and

one from internal audit.

Preparation of comparative statement: quotation is tabulated and purchase

department prepare comparative statement. It is send to indenter. The

indenter gives recommendation

Approval: it is verified by audit section

Concurrence from audit department is obtained

Purchase order is send to the concerned party

3.3.3.2 STORE AND INVENTORY CONTROL SECTION

49

Stores department stores materials about 6,000 items are stored which may

include raw Materials, chemicals, electronics goods, equipments, sparer,

instrumentation etc. The various items are given 10 digit codes for easy

handing. It has computerized system of material handling.

3.3.3.2.1 Steps in Receiving Materials

1. Visual Inspection: First check the purchase order especially purchaser order

number. Only after this the materials is received and stored.

2. Preparation of receiving report

3. Inspection report: check whether the material is actual and inspection is

done by manager (stores)

4. Inspection report is made

5. Payment: Check the material, receiving intents and inspection report is

dispatched to finance department, purchase deparement5 and originator after the

inspection. Payment is done only after this.

6. Preparation of rejection report: If the material is no satisfied the

specifications goods rejection note is made. It is sent to purchase department.

They inform this to the party; new supply is done only after this.

3.3.3.2.2 Inventory Control Section

Inventory control is an essential function of store department. It helps to reduce

and increase profit of the organization. If the material is not coded, codification

is done by MIC for controlling the inventory, certain levels of inventory such as

maximum, minimum and recorder level is prepared. When the stock reaches the

recorder level, purchase request is made.

3.3.3.2.3Functions

1. Maintaining a minimum stock of items required by various departments.

2. Preparation of various reports regarding inventory

50

3. Evaluation of MPR

4. Preparations of material code system various items are given a 19 digit codes

for easy handling

5. Fix various levels such as minimum level maximum level recorder level,

danger level etc. for each item

6. Calculate and minimize lead –time

7. Separate materials into Indian/import

3.3.3.2.4 Inventory Control Technique used in TCC

ABC Analysis

It is based on consumption and cost. Here the inventory is divide into 3

categories A, B, and C based on the value of stocks. Among the various items in

the stores 10% cover 70% of total cost of stocks are included in the A category.

Another 20% of stock covers 20% of total cost and falls in the B category. The

remaining 70% of materials in the stores contribute 10% of total cost of

materials and are include in the C category. Different controlling techniques are

applied for each category

3.3.3.2.5 Objective of Inventory control

Unwanted piling up of inventory is prevented

Material codification to avoid duplication

To determine the item to be stored

To determine which and how much to replenish

To keep suitable records.

To disclosure absolute

51

3.3.4 HUMAN RESOURCE DEPARTMENT

Fig 3.3.4.1 HRD/Training Department structure

Human resource is considered as the most vital assets of an organization. TCC

has a well-defined employee power. Human resource department is headed by

the manager (HRD). He organizes the training and development programs for

workers and managerial staff. Training helps in increasing the knowledge and

skills of the employees for specific purpose. It also helps in improving the

performance of the employees in the present job thereby improving their

capability to take up new assignments. MHRD does not come under the

Personnel department, the manager HRD reports to the DGMT.

3.3.4.1 MAIN FUNCTIONS OF HUMAN RESOURCE DEPARTMENT

1. Identifying training needs

2. Importing the required training

3. Maintain the training records

52

Asst.General Manager HR

Manager HR & Welfare

Deputy Manager Catering Services

Assistant Personal Officer

Apart from these three functions, HR department also looks into:

1. Staffing

2. Formulation and implementation of personnel policies

3. Disciplinary actions

4. Wage and salary administration

5. Recruitment

6. Selection

3.3.4.2 SCOPE

The procedure covers all aspect of training. Arrange suitable training for

employees for updating skills based on the identified training needs

Training advisory committee is responsible for suggesting training

requirements of various departments and disciplines

Formulating training programs on yearly basis.

The committee proposes a training calendar every year

Training needs for the year are identified and recorded by the department

heads.

The details are handed over to the training department by the respective

department heads. Training department does compilation of the identified

training needs of the employees. Necessary training programmers are arranged

by training department to cater the identified training needs of the employees.

Training department organizes training programmers using internal faculties or

engaging faculties from reputed organizations. The training department in

consultation with concerned department heads organizes in-house training

programmers on special requirements. From the employees who attend the in-

house training a feedback about the usefulness of the training is obtained and

consolidated. The concerned department then evaluates the feedback from the 53

participants after a period of 2-3 months to ascertain the effectiveness of the

training programmed. Employees are also sent to other reputed institutions for

training. A feedback from these institutions is received after the completion of

the training. Based on this feedback, the effectiveness of the training is

evaluated.

The achievements against annual training calendar is reviewed half yearly by

the departments. The number of programmers held, number of employee

participation, highlights of training, effectiveness, feedbacks etc is evaluated.

The training department maintains a register on the training programs attended

by the employees. The training department also maintains the format received

from participants after getting it evaluated by the concerned department heads.

The managerial personnel of the company are imparted training to improve their

managerial capabilities at the HRD centre of the company and outside

institutions that are depending upon TCC.

Training is imparted using both on the job and off the job training methods.

Training programs can be broadly classified as:

3.3.4.3.1 Internal Training

The HRD Department has the provision for conducting training. The HRD

centre is a hall, which can accommodate around 40-50 people and has a public

address system and an LCD projector.

Every month a three day training program is held for workers. The workers

education centre, under the labour ministry conducts these programs on a

contract basis, which is recorded annually. 20-25 workers from various sections

are selected every month. 4-5 officers from WEC conduct the training program

and towards the end fixes the dates for the programs next month in consultation

with the manager HRD. The topics covered include personality development,

management development program, interpersonal relations, impact of

globalization, effective communication and others.

54

Other in- house programs are conducted by agencies like Kerala State

productivity Council. In such programs the officers and the subjects are selected

by TCC. These are conducted mostly for workers on pollution, safety etc.

During installation of the Membrane plant, officers were sent to Japan for

training. They came back and trained others here. There for on-the- job training

is prevalent in all the sections of the company.

3.3.4.3.2 External Training Programs

TCC staffs are sent for external training based on the intimations received from

external agencies, Officers had been sending to Madras, Thrivananthapuram

and other places. But now since the company is not financially sound, it does

not send its employees to other states. The management doesn‘t keep aside

budget for training need.

3.3.4.3.3 Various other training Programs

Need based training: Here initially, it is to be determined that what is

the level of knowledge and skill an employee requires in a particular job.

Next is to determine how many employees have to be given this training.

On the basis of these needs, training is given to the employees.

General Training: In order to provide this type of training, one has to

determine what would be the trainee‘s growth potentials, up to what level

he can grow in the organization etc. A performance appraisal has to be

done to evaluate his present performance. Training is then given on the

basis of the results of appraisal.

Induction Training: This training is mainly provided about the

activities, procedures, rules and polices etc. of the organization. It is also

done to know different people in different departments to get introduced

to their colleagues.

Customer Training: Customers and drivers of transportation are given

classes and training about handling chlorine and other products under

various situations. If any leakage happens during transportation, what are

55

the steps to be taken to counter the harmful effects that these chemicals

cause.

Technology Training: The employees are trained on the new

technologies that are entering the market. With efficiency of the

employees in these technologies, the company can increase its

production. Feedback from the employees about the training is obtained

and consolidated. The department also ascertains the effectiveness of

training program from the feed back after a period of 2-3 months.

Personality Development Programs: These programs are conducted by

experts from various reputed organizations and training is mainly for

managerial staff.

3.3.4.4 WORKERS PARTICIPATION IN MANAGEMENT

TCC encourages its workers to take part in the management of the company.

The workers are often consulted through their unions while implementing major

welfare programs of the company. In addition to this, workers are also included

in some of the committee for taking management decisions. These committees

are:

a. Canteen management committee

b. Safety committee

c. Shop floor committee

d. Grievance committee

e. Complaint committee

f. Tri-party committee

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3.3.4.5 PERSONNEL DEPARMENT

3.3.4.5.1 Functions Of Personnel Department

Recruitment: This is done through professionals, executive employment

exchanges and P.S.C.

Manpower planning: Ascertaining the number of vacancies

Welfare functions: Including statutory and non- statutory welfare

measures.

Grievance handling as per the provisions of Industrial Dispute Act and as

per Factories Act.

Maintaining company discipline: as per standing order act

Industrial relations

Public relations

Job descriptions

Job specification

Job Analysis

Training

Staffing

Performance appraisal

Wage and salary administration

General Administration

57

Table 3.3.4.1: Man power of TCC

As per employee statement as on 01 July 2010

Category Number

Managerial Staff` 144

Employees 664

Total 808

3.3.4.6 LABOUR POLICIES

There was no labour unrest in the company for the past 20 years. An

atmosphere of trust and mutual understanding is developed between the

management and the labour unions. Long term agreements are in force for

various periods. They are intended to maintain, promote and improve industrial

and economic relations between the Company and its workers. The guidelines

for wage patters, promotion policies, leave grievance, fringe benefits,

production incentives etc, are determined in the agreement. These agreements

are the means for the settlement of all disputes and grievances, and these lead to

an efficient production and productivity.

The last long term agreement was signed in 2000 for a period of 4 years;

subsequent to this an interesting revision was given with effect from 1-04-2004.

The purpose of this agreement is to channelize collective bargaining relations,

to ensure speedy and fair disposal of grievance to maintain harmonious relation

between the Company and its men, to establish reasonable wage and their

working conditions to prevent strikes, shutdown and lockouts to increase

productivity, to ensure uninterrupted relationship based on a well understanding

of each other for the benefit of the industry and the nation.

58

3.3.4.7 MAN POWER PLANNING

An important function of the PM is that of manpower planning. The list of

retiring employees is prepared 3-4 year in advance and call for recruitment has

to be approved by the MD. The company will inform the vacancies to the Public

Service Commission around five years in advance. Any need for immediate

recruitment is made known to P.S.C.

Internal Sources

Kerala Public Service Commission

Technical and District Employment Exchange

Direct recruitment by advertising

3.3.4.8 PROMOTION POLICY

Promotion policy is divided into two, Non managerial Promotion Policy and

Managerial Promotion Policy.

Non Managerial Promotion Policy

Vacancies, other than to be filled by the recruitment through PSC, will be filled

as per the policy and procedure which are laid down through the terms of

settlement.

If a prospective employee has the minimum qualification and stipulated service,

then he can be considered for promotion upon evaluation of attendance, services

record and quality of work. If hands are not available for promotion in the

respective section/ department, it is notified on the company notice board.

Candidates with the same grade and stipulated length of service considered can

apply. If the candidates are not found available after test, a lower grade with

stipulated service can be given double promotion.

Managerial Promotion Policy

Here a stipulated length of service in the immediate lower grade is the main

criterion of promotion. Promotion from worker category to officer cadre shall

be ordered only with Board resolution and permission of Government. Time

59

bound grade promotions are considered in the case of the lowest two managerial

scales. Periods of ten years service can be considered for promotion.

3.3.4.9 WAGE AND SALARY ADMINISTRATION

A sound wage and salary administration plan exists in the organization. It has

established a fair and equitable compensation offering i.e., similar pay for

similar works. The settlement of wage and salary is done by the accounts

department. The trade unions/ management have a hand in making the wage and

salary plan. Managerial staff is allowed a maximum of 60 minutes late arrival in

the morning during a payroll month and workers allowed 5 minutes late moving

in a working day the worker/ manager is eligible to four hours short leave in the

evening. Punching cards helps to check in and aid check out of both workers

and managers. There are separate punching machines for the staff and

managers. Over time allowances are covered as per the Factories Act.

The workers work in shift. There are three shifts

1. 8a.m. - 4p.m.

2. 4p.m. - 12a.m.

3. 12a.m. - 8a.m.

The employees are paid shift allowances as per the shift. The night shifts are the

most well paid shift. The employees either work one shift i.e. 8am-4pm shift or

they work two shift i.e. 4pm-8am shift. Hence the employees need to work only

2 night and 2 day shifts in a week.

3.3.4.10 ADMINISTRATION OF LABOR WELFARE

The labour welfare measures of the company are planned, implemented and

monitored by its personnel department. The DPM & WO is in charge of co-

operating the labour welfare activities. He acts as a liaison officer between the

employees and employer. He puts the grievances of the labour before the

management and take all steps redress them. He assists the management in

exercise of their rights vis-à-vis each other.

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3.3.4.11WELFARE PROGRAMME

Labour welfare measures in India can be classified as statutory and non-

statutory. Statutory welfare comprises those provisions which are binding on

employers by law. These relate to certain essential working conditions and

standards of health. Non- statutory welfare programs are provided voluntarily

by employers. For example, housing, education, recreation, transportation etc

are examples of non-statutory welfare measures. Thus statutory welfare ensure a

bare minimum of facilities and reasonably good working conditions, employers

are free to provide, non- statutory measures in varying degrees.

3.3.4.11.1Statutory Welfare Measures

Accident benefits

Annual Bonus

Drinking water

Occupational Health Centers

Rest rooms and Lunch rooms

Sitting facilities

Storing and drying facilities

Toilets and bathrooms

Allowances to employees

Educational Allowances

Bata( Perquisites or Amenities)

Overtime Allowances

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Leave

3.3.4.11.2 Non- Statutory Welfare Measures

Housing Facilities

1. Main Colony

2. Main Colony Annexed

3. Pathtalam Colony

Medical Attendance Scheme

Group Accident Policy

Production Bonus

Voluntary Retirement Scheme

T.C.C. Canteen

Security and protection

Working Time

Performance Appraisal

3.3.4.12 Leave

The number of leave/holidays in a calendar year will be as follows:

Privilege Leave – 30 days

Causal Leave – 15 days

Sick Leave – 15 days (for workmen to cover under ESI scheme)

3.3.4.13 Holidays

Paid Holidays – 13 days (including four compulsory holiday)

3.3.4.14Gratuity

Gratuity is paid as per the Gratuity Act.

3.3.4.15 Bonus

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3.3.4.15.1Production Bonus:

Production Bonus is paid on the basics of production. A production linked

bonus is given to the employees and this scheme is called “Monthly Bonus

Scheme - 1998”. As per this scheme the employees cooperate to maximize

production and minimize consumption of raw material and eliminate wastes.

3.3.4.15.2 Attendance Bonus:

Attendance bonus is paid to all permanent workmen on payroll month basis

along with wages for each month as per the schedules given below. However in

a payroll month in which the working days stipulated below are inadequate and

a workman attended all the available working days, he will be paid full

Attendance Bonus.

3.3.4.16 GRIEVANCE REDRESSAL

Grievances are to be solved effectively for smooth functioning of the

organization. Grievance redressal committee is hence statutory. It is legally

maintained. Trade unions are satisfied with the present condition in TCC and

hence there is no grievance redressal committee. The healthy employer-

employee relationship favours this.

3.3.5 FINANCE DEPARTMENT

63

Managing Director

General Manager Finance

CS & IADeputy Finance Officer

DM(CASH)DM(CO& PF)DFM (C) DFM (MA)……………

Senior Assist. OfficerSAO (PF)

Assist. Officer

Fig 3.3.5.1 Finance Department structure

Table 3.3.5.1 FIVE YEAR FINANCIAL HIGHLIGHTS

2009-10 2008 -09 2007 - 08 2006 -07 2005-06

Sales 10752 12063 9390 12321 10877

Other Income 686 313 1674 219 158

Stock: Increase/Decrease 332 -36 4 199 13

Total Income 11770 12340 11068 12739 11048

Material Consumed 1603 2043 1268 1648 1594

Power, Fuel, Stores & Repairs 6186 6374 5668 6702 5675

Employee Cost 2455 2333 2634 2369 1678

Selling & Administrative 145 76 71 78 7564

Expenses

Other Expenses 49 38 35 49 12

Total Expenses 10438 10864 9676 10846 9034

Gross Margin 1332 1476 1392 1893 2014

Interest & Bank Charges 660 790 289 964 606

Depreciation 937 969 1012 920 827

Profit/Loss Before Prior Period

Items

-265 -283 91 9 581

Prior Period Items 15 10 -47 53 0

Profit/Loss Before Taxation -250 -273 44 62 581

Provision for

Taxation

Current Tax 0 -1 5 5 48

Fringe Benefit

Tax

-1 9 11 8 10

Income Tax Paid (prior period) 0 0 0 0 0

Net Profit / Loss -249 -281 28 49 523

Net Block 7222 7783 8558 9407 7998

Capital Work In Progress 230 41 11 1 942

Current Assets Loans and

Advances

4007 3636 3457 3717 3576

Current Liabilities and

Provisions

4898 4701 5474 5583 5859

Investments 2 2 2 2 0

Accumulated Loans 1315 1066 786 813 862

Total utilization 7878 7827 7340 8357 7519

Working Capital (WC) -891 -1065 -2017 -1866 -2283

Long Term Borrowing 4267 4008 4030 4574 4856

Short Term Borrowing 982 979 807 588 144

Share Capital (SC) 2131 2131 2131 2131 2131

Interest Accrued 125 338 0 1064 388

65

Deferred Payment liability 0 0 0 0 0

Total Sources 7878 7828 7340 8357 7519

Net worth 816 1065 1345 1318 1269

Capital Employed 6330 6718 6541 7541 5715

Finished Goods 590 247 295 308 109

Work in Progress 19 29 17 0 0

Raw Materials 367 535 244 248 280

Materials in Transit 55 90 62 64 161

Store and Spares 601 603 400 425 413

Sundry Debtors 1130 974 1229 1425 1099

Cash and Bank Balance 59 102 115 139 124

Loans and Advances 1186 1056 1095 1108 1386

Other Current Assets 0 0 0 0 4

Store and Spares in Transit 0 0 0 0 0

Total 4007 3636 3457 3717 3576

Cash Profit / Loss 688 689 1040 969 1350

Finance is a vital part of any business organization. It controls the procurement

of funds in the company. TCC has an efficient finance department headed by

the deputy finance controller, who is assisted by an efficient finance manager.

DFC is responsible for shaping the fortune of the company, preparing budgets,

raising funds and keeping different accounts. There is a management

information system to assist the finance department. Each cash payment and

receipt is stored in computer. The internal audit system is carried out in the

company by the initial audit section headed by the charted accountant. Regular

reports are given to the department heads for taking the corrective actions where

necessary. The budgets are reviewed, deviations are analyzed and necessary

corrective actions are taken. The main function of the bill section is passing of

bills, which is done after checking quotation, order and production. Bills are

66

passed after seeing that materials received is in conformity with the purchase

order.

The finance department itself is divided into different sectors like general

accounts, costing bills, establishing and provident fund and account section

which have its own function.

3.3.5.1 Information provided by finance department

P&L Account

Balance sheet

Statement of sales, production and capacity utilization

Cash flow statements

Statements regarding raw materials and process chemical variances

3.3.5.2 Types of bills

Invoice of suppliers

Maintenance bills for various departments

Petty work bills

Transportation bills

3.3.5.3 Function Of Finance Department

Purchase bills passing and payments to suppliers

Sales invoice recording

Debt collection

Budgeting and costing

Statutory auditing

Finance control

67

Handle all auditing and taxes

Sales accounting

Generation and utilization of funds

Finance book keeping and finalizing of accounts

Treasury operation

Cost record

Management information system and co-operate planning

TCC has an exclusive PF trust for their employees. The company gives money

to the trust. Trust invests this properly. Retirement benefits are issued from this

fund. The company‘s liability towards gratuity to employees is covered by

group gratuity scheme with the LIC of India.

3.3.5.4 The following are the banks in which the company has account

SBT Tuticorin

Indian Overseas Bank, Kochi

State Bank of Hyderabad, Kochi

Union Bank of India, Kochi

SBT Udyogamandal

SBT Ernakulam

ICICI, Kochi

3.3.5.5 Sources of funds

For efficient production and sale there must be adequate finance for fixed

assets, raw materials to meet day-to-day expenditure. The company raises funds

by mean of equity funds and borrowed fund. The share capital includes

68

authorized, issued, subscribed and paid up capital. Subsidy has been received

from DSIR and government of Kerala. Loans are obtained as term from IDBI

and material loans from government of Kerala.

3.3.5.6 Corporate Secretary And Internal Audit

Memorandum and articles of association, certificate of incorporation and other

statutory registers under the companies Act 1956 are maintained in the

companies registered office at TCC, Udyogamandal.

3.3.5.7 Duties And Responsibilities Of Company Secretary

Conducting board meeting of the organization.

The legal interpretation of the profit and loss statement and balance sheet.

Filing returns with register of companies.

Drafting agreements with the financial institution under the Companies

Act.

Conducting the annual general meeting and extra ordinary general

meeting if required.

Gratitude functions of the organization.

Providing public information under Right to Information Act, 2005.

Liaison with Registrar of companies, LIC official and other government

and private agencies.

3.3.5.8 Management Of The Company

A Board of Director consisting of one managing director, director finance and

three other part time directors of the company. Company has seven share

69

holders. They are government of Kerala, FACT, KSIDC, SHL trading limited

and two independent nominees from governmental of Kerala.

3.3.5.9 Internal Audit

The internal audit system in the company has been established since long. The

internal audit reports directly to MD. The staff of the department includes on

stock verifies and two senior assistants.

3.3.5.9.1Functions

Pre audit of all purchase and contract files.

Verification of sales order and related records.

Verification of petrol and wage salary of workers, staff and officers.

Incumbent proposal of management staff, salary fixation etc.

Verification of various vouchers, journal, ledgers, and other records of

financial and cost accounts sections.

Operational audit performance, management audit etc. if necessary.

3.3.6 PROJECT DEPARTMENT

Fig 3.3.6.1 Project and systems Department Structure

70

Project department is an independent department. The main function of this

department is the execution of new projects for the company. They prepare

feasibility reports and to invite tenders for the execution of new projects.

3.3.6.1Functions Of Project Department

Planning feasibility study and implementation of new projects

Preparation of detailed report 71

Senior Manager Project 2

Senior Engineer Project 1

Chief Engineer Project 2

Chief Engineer Project 1

Deputy General Manager Technical

General Manager Technical

Preparation of feasibility reports if approved by the management

Invitation of tenders through advertisements

Evaluation of tenders

Agreement

Execution

Hand over the new projects to operations department

3.3.6.2 New Projects in Discussion

Sale on drinking water –TCC have a water treatment plant with excess capacity.

Serious discussions are going on regarding the sales of water in total area at a

reasonable rate. Also, they are discussing on the enhancement of the 175TPD

caustic soda production to 225TPD.

3.3.6.3 New projects in consideration

Development on a new rutile plant

Transportation through water

3.3.7 ENGINEERING DEPARTMENT

Fig. 3.3.7.1 Engineering Department Structure

72

General Manager Technical

The department is headed by Manager (Engineering) and has four sections.

Utility and statutes

Mechanical Maintenance

Maintenance planning 73

Asst. General Manager Engineering

Deputy General Manager Engineering

Ex. Tr

Senior Engineer Maintenance

Deputy Manager Utilities & Statues

Deputy Manager M & P

Deputy Manager Fire & Safety

Deputy Engineer Maintenance

Chief Engineer Utilities & Statues

Chief Engineer Maintenance &

Planning

Chief Engineer Fire & Safety

Chief Engineer Maintenance

Ex. Tr

Senior Engineer-Automobile Senior Engineer-Cylinder Mntc. Senior Engineer-Work Shop

Senior Engineer M & P

Senior Engineer Fire & Safety

Ex. Tr

Civil section

3.3.7.1UTILITY AND STATUTES

This is the services sector in TCC, which provides service to other departments.

Utility and statutes section have a well defined structure and more than 100

members under various department sections.

3.3.7.1.1Functions

Provide different utilities including statutory services

Provide operators and transporters for automobile works

Chlorine cylinder maintenance including regular maintenance, painting

and statutory testing

Welding, machinery painting and salt charging.

Statutory research of equipment and tools.

Maintain and run workshops for fabrications and machineries.

3.3.7.2 MECHANICAL MAINTENANCE SECTION

Mechanical section tends to be the backbone of TCC. This section and they

handle all types on manual maintenance look forward to maintain the machines

is the best possible manner and ensure healthy and sound flow of work within

the organization

3.3.7.2.1Objectives

To ensure all equipments engaged in production are good in condition

To reduce down time of critical equipment

To reduce cost due to inefficiently in handling the equipments.

74

3.3.7.2.2 Types of Maintenance

Break down Maintenance: machine checking is done on regular basis to

avoid break down

Preventive Maintenance: systemic check is done to avoid break down

3.3.7.3 MAINTENANCE PLANNING SECTION

ACE heads section. The mains objective on the section is to assist other

departments and sections namely, U&S, Civil Mechanical Maintenance,

Electrical, Instrumentation etc. In planning and implementing engineering

works. The section also provides assistance to project department in developing

new project

3.3.7.4 CIVIL SECTION

Civil engineer who is reporting to DGM (Deputy General Manager Technical)

heads this section. The main role of this section is the construction of building

and other premises of the company. It is also engaged with the social task to

ensure the smooth flow of industrial activities

3.3.7.4.1 Function

Maintenance of existing building

Painting, insulation and tender issue of civil work.

Roof maintenance work

Tender issue for civil works

Preparing MPR (Material Procurement Requirement) of steel sheets,

cement and other construction at materials except sand.

75

3.3.8 ELECTRICAL AND INSTRUMENTATION DEPARTMENT

The department is headed by Manager (E&I) and has two sections, electrical

and instrumentation sections.

76

3.3.8.1 Electrical Section

Electricity is a raw material for TCC, since the manufacturing process involves

electrolysis. The major function of the Electrical Department is to condition the

electricity received to such a form that, it can be fed to the process. Electricity is

received by TCC from Kerala State Electricity Board‘s 220KV substation at

Kalamassery through two 110KV feeders. The substation to receive this supply

and step it down to 11KV level has got 50MVA capacities. The capacity

contracted by TCC is at present 20MVA, which is required at the present level

of production. The 11KV supply is distributed from an 11 KV panel in the

substation to various transformers, rectifiers and other equipments.

The rectifiers are equipments, which convert alternating current to direct current

at the voltage level required for the process. The rectifiers in plant 1 are 61 KV

capacities. In plant I and II there are four auxiliary transformers each. There is a

transformer in the water treatment plant located about 3 Km away from the

company. The functions of the department include operation and maintenance

of the substation, transformers and rectifier systems make arrangements to meet

the statutory requirements, periodical inspection etc, take part in the production

planning process, provide advice regarding the matters related electricity and

electrical equipments etc, to the top management and also documentation and

preparation of drawings etc.

3.3.8.2 Instrumentation Section

Process Instrumentation is a vital part of modern day manufacturing process. It

ensures reliable and accurate operation of the equipments and smooth control of

the process with minimum human intervention. The modern day processes are

all microprocessor controlled. It avoids the errors inevitably caused by the

humans.

The functions of the section includes preventive and breakdown maintenance of

the control equipments and systems, coordination with the external agencies

77

supplying software, hardware etc, provide advice to the top management in

related matters, etc.

78

CHAPTER 4

SWOT ANALYSIS

4.1STRENGTH

TCC is a pioneer in the Chlor alkali market and has created reliability and

credibility among the customers. It is the only Chlor alkali unit in the

state which has more than 80% market share for its product in the state.79

TCC acts as a mother industry which feeds other industries. Company’s

products are basic chemicals and are considered to be the building blocks

of chemical industry.

It has a strategic location where there are no competitors around. The

company is located at the centre of the industrial belt where maximum

consumption of Chlor-alkali products takes place. Many of the main

customers of TCC are located near to it itself like HIL, FACT, etc.

TCC has a good strength of skilled work force, educated staff and

professionally qualified managers. It has excellent management labour

relation and hence there was no strike reported for the last few years.

TCC enjoys great benefits of its location where there are excellent

transporting facilities which has proximity to national highway, railway

line, sea port and airport.

It has abundance availability of water which is the main raw material of

TCC as it is located in the banks of the Periyar River.

Good record of production and financial performance in the past years.

TCC is pioneer of rayon grade caustic soda and the Company has created

creditability and reliability among its customers.

4.2 WEAKNESS

Company has large number of workforce which is more than what

actually is needed. So the employ cost is very high. Also the workers are

more relaxed and their works are also very limited, so a lazy nature is

developed within the employees.

TCC is a government owned company. So the political condition of the

state affects the management of the company. The major decisions of the

company has to get the approval from the government, which will delay

the decision making process.

80

Logistics are unfavorable as the raw materials are brought from distant

places. The main raw material, i.e., salt, is brought mainly from Tamil

Nadu and Gujarat. But after the tsunami, the amount of salt got from

Tamil Nadu has decreased considerably. So it has to be taken from

Gujarat, which increases the transportation cost.

Another raw material is electricity. Company needs a huge amount of

electricity for their production. Almost 60% of the manufacturing cost is

from electricity. So any fluctuations in the electricity charges will also

affect the company.

The unavailability of unskilled labourers is another problem which is

faced by the company. The company requires the availability of unskilled

labourers for their processes like maintenance of the company and other

civil processes. Also the available unskilled workforces are not ready to

work in such dangerous conditions.

The employees in the organization are given a permanent job security and

several other benefits. So many of the employees do not perform their

duties very effectively. The lack of profit motive leads to a poor

performance of the company.

Even though there are lesser strikes within the company, the strikes which

are external like the strikes of the lorry drivers etc. will also affect the

company very badly. If there is a lorry strike for few days the

transportation process has to be made to standstill.

4.3 OPPORTUNITIES

81

The company could reduce their cost, by implementing a renewable

energy source like solar panels, and hydro projects. This could enable

them to reduce the cost incurred for the electricity.

As the company is government owned they could get much financial

assistance and other expert guidance for the successful operations of the

firm.

The consumption of Chlor alkali products is low when compared to other

developed countries. The economic development of the country may

increase in a higher demand for the products.

TCC is the only Chlor alkali producing company in Kerala. Hence it has a

monopoly in the area.

The overall improvement in the trade and business in the economy result

in bringing more demand for the products of TCC.

4.4 THREATS

Industry is rather a matured one in the life cycle hence there is a low

prospect for the future growth and might be on a decline path if

substitutes are found out.

The infrastructure of the company is rather obsolete compared to others.

The company needs to spend a lot of money for maintenance process.

The company is also affected by the high competition from the foreign

companies in the market.

The import duty policy of central government is not fair and caused

periodic fluctuation in the price of company‘s product.

The hike in the price of the raw materials mainly the electricity is an

important threat for the company. As the whole process of the company is

based on electricity, so a small hike in the price of electricity hinders the

company in a very bad way.

82

The transportation cost is another problem which the company faces, the

raw materials needs to be transported from faraway place like Gujarat.

As the neighboring companies like HIL are incurring huge loss in their

production, they are cutting down their production. So the sales in TCC

are also getting reduced.

83

CHAPTER 5

FINDINGS, SUGGESTIONS AND

CONCLUSIONS

5.1 FINDINGS TCC is the only Chlor Alkali unit in Kerala which is owned by the

government.84

The major customers of TCC are pharmaceuticals companies, soap

industries, insecticides and pesticides industries, paper industries and

rayon industries.

TCC has 80% of market share for its products in Kerala.

The major competitors are SPIC and Chemplast.

Other chemical companies like FACT, HIL, etc. get their raw materials

from TCC. So TCC acts as a feeding company.

Company follows management by convenience and not management by

objectives.

Pricing policy of TCC is an average, according to the industrial standards.

TCC have a flexible credit policy, they give credit facility up to 30-45

days and they are getting credit of 60 days from suppliers.

The customers have reported no rejection of TCC product, which shows

the product satisfaction.

In case of lead time, it was noted that order processing took too much

time due to lot of work.

The strength of TCC is the quality of their products, services and the

delivery.

No strikes have been reported for the last 10 years, it shows the

relationship of workers and management as better.

The company is depending heavily on electricity and around 60% of their

product price is for this.

New technology of Membrane cell has the advantage of pollution free

environment and also it brings about 30% reductions in electric power

requirements. 85

No major environment pollution has been reported for the past 50 years

of operations.

5.2 SUGGESTIONS

In order to increase the production the company may try giving some

motivation to the employees.

The company shall take necessary actions to maintain the ratios at the

standard level.

Improve the first aid facilities by providing free medicines and

treatments.

TCC should try necessary steps to increase the net profits.

TCC should persuade workers to use safety equipments more effectively

The company should conduct market research to understand the

movement of the products in the market and to identify the potential and

new customers

The organizational hierarchy must be checked to avoid organizational

blocks.

The company could use non renewable energy sources like solar panels

which would reduce the electricity charges, which is one of the main

charges which is incurred in production.

5.3 CONCLUSION

Travancore Cochin Chemicals Ltd, Udyogamandal is a state owned undertaking

engaged in manufacture of basic chemicals like caustic soda, HCL, Chlorine, 86

Sodium Hypochlorite, etc. TCC was established in 1950, with a nominal

production of 20 TPD. TCC’s products have national reputation for quality and

the company gives high priority to customer satisfaction.

TCC have marked changes in the technology of process and also stresses

importance in productivity, employee’s morality, quality and clean

environment.

The study has accomplished several goals. The study has helped to familiarize

with working condition of the organization. It has helped to study the

coordination among various departments. The study has given a general idea

about the functioning of TCC. It helped to analyze and understand the

administrative functions.

Till 1995- 1996, company had recorded a steady growth in production as well as

in sales. After that period even through the sales remains on an average, the

company could not make any profits. This was due to the implementation of

membrane cell technology in place of 68 mercury cell technology. The higher

electric charges compared with other states also affected the profits of the

company.

As per the study conducted, it has been observed that the capacity of production

has increased and the company is recovering from the fall in profits.

Since an organization is a human grouping in which work is done for the

accomplishment of some specific goals or mission, this organization is trying to

remain on top position by utilizing and maintaining its resources to maximum.

Proper management is a challenging job, and here in this organization proper

administration and social system are prevailing and it accounts for the strength

of the organization on order to attain its objectives.

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BIBLIOGRAPHY

BOOKS

C.R. Kothari -Research Methodology, New age International Publishers

Philip Kotler - Marketing Management, Prentice Hall of India, Pvt. Ltd.

JOURNALS

Annual Report of Travancore Cochin Chemicals LTD.

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WEBSITES

WWW.TCCKERALA.COM

WWW.BUSINESSLINE.IN

WWW.MONEYCONTROL.COM

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