CHAPTER 1 INTRODUCTION

1.1 INTRODUCTION TO THE STUDY

The main aim of the organisational study is to acquire the knowledge regarding the functional as well as the management aspects of an organisation. It helps us familiarize with a business organisation and the different departments in the organisation and their functioning. This is an organizational study at THE TRAVANCORE COCHIN CHEMICALS LIMITED, COCHIN, KERALA. TCC is a Kerala State Public Sector undertaking situated at Udyogamandal in the Cochin Industrial belt. The factory and registered office is located 20Km from Kochi International Airport and 15 Km from Ernakulam North Railway station. The Company manufactures basic industrial chemicals Caustic Soda and Chlorine products. These chemicals have wide application in the mineral processing, manufacture of paper and pulp, textiles, soaps and detergents, pesticides, aluminium, polyvinyl chloride, petrochemicals, drugs & pharmaceuticals, oil refining, water purification, etc..

1.2 SCOPE OF THE STUDY

The study was limited to Travancore-Cochin Chemicals Limited, Udyogamandal. The study was to get a general awareness of the function of the various departments and management of TCC Ltd. The period available for the study was limited .There are many departments like marketing, materials, finance, operations and technical services Etc. The attaining of information about different departments helped to analyze the strengths , weakness ,opportunities and threats of the company.

1.3 OBJECTIVES OF THE STUDY

The objective of the organization study includes the following: To understand the organizational structure and the working of the various functional departments. To have an exposure to the work environment.

To understand the overall performance of the company. To make an analysis of the organizations performance. To study the relevance of TCC on chemical industry field in Kerala

1.4 METHODOLOGY
It is an overall operation framework, which help to collect the required data. The methodology used in the study involves the collection of data through primary and secondary means within the given time period. PRIMARY DATA It refers to the first data collected from primary sources .The primary sources of data collection were direct personal interview with managers of concerned department, official staff and workers of the company. SECONDAY DATA Data which are not originally collected but rather obtained from published or unpublished sources includes: Company records, Annual records, Official sites of the company, World Wide Web. The collected primary data and secondary data were used in the preparation of this organizational report

1.5 LIMITATIONS OF STUDY

The limitations of the study are the following: TCC is a large chemical industry; as such accurate data regarding the internal affairs of the company are not easily available. The available data is not sufficient to get the desired result. As a vast coverage is needed for getting the desired results, time is a limiting offer.

CHAPTER 2 ANALYSIS OF THE BUSINESS ENVIRONMENT

2. BUSINESS ENVIRONMENT ANALYSIS 2.1 INDUSTRY PROFILE

2.1.1 GLOBAL SCENARIO The world chlor-alkali industry is growing. The chemical industries play a vital role in the production of many manufactured goods. The industry provides a tremendous variety of materials to other manufacturers as raw materials. Major products of the industry include detergents, drugs, fertilizers, preservatives, flavourings, paper, fine chemicals etc. 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 industrialised countries. Speciality chemicals are a category of relatively high valued, rapidly growing chemicals with diverse end product markets. They include electronic chemicals, industrial gases, adhesives and sealants as well as coatings, industrial and institutional cleaning chemicals and catalysts. Chemicals in the bulk petrochemicals and intermediates are primarily made from Liquefied Petroleum Gas (LPG),natural gas and crude oil. Typical large volume products include ethylene, propylene, benzene, toluene, xylene, methanol, Vinyl Chloride Monomer (VCM),styrene, butadiene and ethylene oxide. Inorganic chemicals (about 12% of the revenue output)include salt, chlorine, caustic soda, soda ash, acids (such as nitric, phosphoric and sulphuric)titanium di-oxide and hydrogen peroxide. Fertilizers (about 6% of the revenue output) include phosphates, ammonia and potash chemicals. Consumer products include direct product sale of chemicals such as soaps, detergents and cosmetics.

2.1.2 INDIAN SCENARIO The Indian Chemical Industry is a significant component of the Indian economy with revenues at about USD 28 billion. Indian Chemical Industry contributes about 6.7% of Indian GDP and 10% of total exports. The industry contributes around 20% of national revenue by way of various taxes and levies. Volume of production by chemical industry positions India as third largest producer in Asia (next to China and Japan). The chemical industry accounts for about13% share in the manufacturing output. The industry is a vital part of the agricultural and industrial development in India and has key linkages with several other downstream industries such as automotive, consumer durables, engineering, food processing etc. With the current levels of performance the Indian Chemical Industry ranks twelfth in the world production of chemicals. The chemical industry has achieved a growth rate of 8.6% over the last few years making it one of the fastest growing sectors in India. This industrys growth rate has been twice the Asian growth rate over the last five years. But the asset creation has been the lowest. The Indian Chemical Industry is faced with multiple challenges. It is emerging from a protected environment into a highly competitive global market. At the same time the domestic market shows a path to maturity with a high demand potential for chemical end- products. In terms of consumption, Indian chemical industry itself is its largest consumer; as the basic chemicals undergo several processing to manufacture downstream chemicals. The industry accounts for approximately one-third of the total consumption. Gujarat is the major contributor to the basic chemical as well as petrochemical production with 54% and 59% share, in all India production, respectively. Other major states producing basic chemicals include Maharashtra (9%), Tamil Nadu and Uttar Pradesh (6% each). Other major states producing petrochemicals include Maharashtra (18%), West Bengal (12%), Uttar Pradesh (4%) and Tamil Nadu (3%).India is also an importer of chemical products. Indias chemical imports are either for the purpose of further processing in the chemical industry or for usage as intermediates in other manufacturing sector. India has been sourcing its imports mainly from China (20% of Indias total chemical imports), followed by USA (8%), Saudi Arabia

(6%), Singapore, Morocco and Germany (5% each).The Government has been announcing a number of measures to improve the competitiveness of the Indian chemical industry. These include, abolition of industrial licensing to most of the chemical sub-sectors, excepting a small list of hazardous chemicals. The Government is also continuously reducing the list of reserved chemical items for production in the small scale sector, thereby facilitating greater investment in technology up gradation and modernization. The Government has initiated policies for setting up of integrated Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIR). Such an initiative is likely to attract major investment, both domestic and foreign, into the regions, which would have enabling infrastructure that would provide conducive and competitive environment for setting up of manufacturing units. PCPIR would reap the benefits of co-sitting, networking and greater efficiency through use of common infrastructure and support services. 2.1.3 REGIONAL SCENARIO Caustic soda is one of the basic inorganic chemicals manufactured from common salt. There are 4 products in the manufacturing of caustic soda, chlorine and hydro chloric acid, and hypo chlorite, last one is a bye product. In Kerala, TCC is the only chloralkali plant. 175 tonnes per day, caustic soda is produced by this company and used in the manufacture of soaps, textile and plastic etc. There are many small-scale industries in the state, which consumes caustic soda for the production of soaps, plastics and textiles

2.2 INDUSTRY ANALYSIS

2.2.1 INDUSTRY KEY PLAYERS The chlor alkali industry in India is around 60 years old. It began with a modest capacity of a few thousand tonnes per annum and has since grown into a 2.24 million tonnes per annum capacity industry. In all, there are 41 production units: 32 per cent of the countrys chlor alkali production is from 21 units that use the obsolete mercury cell technology and 68 per cent is from 19 units that use the latest membrane cell technology. There is even one unit that uses the archaic diaphragm technology, which accounts for 0.3 percent of production.

The major players are Jayshree Chemicals Ltd - (JCL) is a widely held public limited company incorporated on 17th April 1962 in the state of West Bengal. The registered office of the company is presently located at P.O. Jayshree Dist. Ganjam, Orissa. The equity shares of the company are listed on the Bombay Stock Exchange. The company is engaged in the manufacturing of Caustic soda, Liquid Chlorine and Hydrochloric Acid (HCL) and Sodium hypo chlorite based on Energy efficient Latest Membrane Cell Technology at Ganjam District, East Coast of Orissa having an installed capacity of 53200 MPTA, 35000 MPTA, 37000 MPTA AND 6500 MPTA of Caustic Soda, Liquid Chlorine and Hydrochloric Acid (HCL) and Sodium hypo chlorite respectively. Gujarat alkalies and chemicals ltd - GACL is the single largest producer of Caustic Soda in India, with a production capacity of 1087 TPD. It has been accredited with IS/ISO 9001:2000, IS/ISO 14001:2004 and IS 18001:2000 Certifications. The location of both the plants 'Vadodara' and 'Dahej' has dual advantage of proximity to the raw material suppliers and the end users. The company has made it's presence felt across the globe even against stiff competition by exporting products to USA, Europe, Australia, Africa, Far & Middle East countries, China & South Asian Markets. Caustic-Chlorine being it's prime product, the company has diversified into value added products like Sodium Cyanide, Chloromethanes, Hydrogen Peroxide, Potassium Carbonate, Phosphoric Acid, etc. These value added products provide dual benefit to the organization by hedging against cyclical fluctuations in the Chlor-Alkali Industry. GACL sells 24 products today, maintaining it's leadership in CausticChlorine industry with 16% market share and has emerged as a major player in the segment of value added products. Grasim Industries ltd - Grasim Industries Limited, a flagship company of the Aditya Birla Group, ranks among India's largest private sector companies. Starting as a textiles manufacturer in 1948, today Grasim's businesses comprise viscose staple fibre (VSF), cement, chemicals and textiles. Its core businesses are VSF and cement, which contribute to over 90 per cent of its revenues and operating profits. The installed capacity of Grasim Chemical Division is 766 TPD for 46 - 48.5% Lye and 50 TPD for 99.8% Flakes. This capacity is the second largest in India. It uses cost-effective
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membrane cell technology and is 100 per cent self-sufficient in power. For gainful utilisation of chlorine, the unit has expanded its operations with the production of stable bleaching powder (SBP) used in water purification, sanitation and as a bleaching agent; poly aluminium chloride (PAC) used in water treatment, paper sizing and effluent treatment; and chloro sulphonic acid, used in vinyl sulphate, the raw material for dyes and intermediates, saccharin, drugs and pharmaceuticals, etc.

2.2.2 COMPETITOR ANALYSIS Major Competitors of TCCChemfab Alkalis Ltd,Pondicherry. Andhra Sugars Ltd, Andhra Pradesh. DCW Ltd, Mettur. Kothari Petrochemicals Ltd. SPIC ,Chennai. Sree Rayalseema Alkalis & Allied Chemicals Ltd, Andhra Pradesh. Chemplast Ltd, Mettur Chemplast Sanmar Limited is a chemical company based in Chennai, Tamil Nadu. It is part of Sanmar Group which has businesses in Chemicals, Shipping, Engineering and Metals. It has a turnover of over Rs.45 billion and a presence in some 25 businesses, with manufacturing units spread over numerous locations in India. Chemplast Sanmar's manufacturing facilities are located at Mettur, Panruti, Cuddalore and Ponneri in Tamil Nadu, Shinoli in Maharashtra, and Karaikal in the Union Territory of Pondicherry. The salt needed for chlorine manufacture is supplied by salt fields Chemplast owns at Vedaranyam. The power-intensive electrolysis process of manufacturing chlorine is served by Chemplasts own power plant. While the chlorine generated is entirely used for captive consumption, the caustic soda is sold in the open market. To derive further cost advantage, the company has gone in for a gas based power plant of 13 MW capacity at this location The marine terminal facility set up to handle import of Ethylene also facilitates Chemplast to ship Caustic by ocean going

vessels, enabling the company to meet the demand of both large Caustic players and the export market. It has an installed capacity at Mettur of 48,000 TPA of caustic soda and 42,000 TPA of chlorine. In Karaikal it has a capacity of 54,750 TPA of caustic soda; 48,508 TPA of chlorine. DCW DCW is an industry pioneer with a strong presence in the Chlor-Alkali, Synthetic Rutile and PVC business segments, with a successful record of innovation and in pioneering new products and processes. Its competitive edge is further enhanced by the diversity of its product portfolio. DCW has two manufacturing units. At Dhrangadhra, Gujarat, it produces Soda Ash, Sodium Bicarbonate & Ammonium Bicarbonate. At Sahupuram, Tamil Nadu, it produces Caustic Soda, Liquid Chlorine, Hydrochloric Acid, Beneficiated ilmenite, Trichloroethylene, Yellow Iron Oxide, Ferric Chloride, Utox & PVC. It is an industry pioneer with a long track record in the Chlor-Alkali and Petrochemical industry. The Companys competitive position is enhanced by the diversity of its products portfolio. DCW produces Caustic Soda using the latest energy efficient and environment friendly Mercury free state-of-art Membrane Cell Technology. Its caustic soda production Capacity is 100,000 TPA and liquid chlorine is 36000TPA. DCWs Hydrochloric Acid is a guaranteed Mercury Free acid with minimum 30% concentration. It has a production Capacity of 90,000 TPA. Chemfab alkalies In India, Chemfab Alkalis Ltd [CAL] were the first to introduce membrane cell technology in 1985. CAL set up the first membrane cell caustic soda plant in the Union Territory of Pudhucherry and commenced production in 1985.CAL, is the first Company in the country to manufacture Barium Sulphate from solid waste and it holds a patent for manufacture of the same. Its production capacity of caustic soda is 33000TPA, liquid chlorine is 28700TPA and hydrochloric acid is 12730TPA.CAL plant is located on the ECR about 500m from seashore at Kalapet in Pondicherry. Since the location of CAL is 500m from seashore, it offers great potential for desalination.CAL gets good quality salt for membrane cell Electrolyser at very low cost due to reduced transportation costs.

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CHAPTER 3 ORGANISATIONAL ANALYSIS

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3. ORGANISATIONAL ANALYSIS
3.1 OVERVIEW OF THE ORGANISATION The Travancore Cochin Chemicals Ltd., popularly known as TCC ltd., is a state public sector undertaking owned by the government of Kerala. TCC is situated at Udyogamandal in Cochin industrial belt. Incorporated in 1951, TCC is one of the oldest chlor-alkali units in the country. TCC is a large chemical industry engaged in the manufacture and marketing of Caustic soda, chlorine, hydrochloric acid and related chemicals. TCC is an ISO 9001-2000 certified company. The company supports a large nmber of industrial units of strategic importance by supplying basic chemicals. 3.1.1 HISTORY OF TCC LTD TCC was established in 1951 and started commercial production in 1954 with an installed production capacity of 20 tonnes of caustic soda per day. The idea was to supply HCL to FACT for making ammonium chloride. FACT and MCIC (Mettur chemicals and Industrial Corporation) registered as a joint venture company under the name Travancore Mettur Chemicals (TMC) in 1950. The partnership was unable to complete the project due to shortage of finance. TMC took up their problem with the then Travancore-Cochin state Government. By that time two other companies (Hindustan Industries ltd and Indian Rare Earth Ltd) were setting up their plants at Udyogamandal with a view to receive chlor-alkali products from TMC. As the stoppage of TMC would affect 3 major companies, the Travancore-Cochin state government gave financial assistance to TMC and the company was renamed as Travancore Cochin Chemicals (TCC) in 1951. When the first plant with 20 tonnes per day caustic soda production capacity was commissioned in 1954, it was the first mercury plant manufacturing caustic soda in India and the pioneer producer of Rayon grade caustic soda in the country. 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

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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 caustic soda. STAGES OF GROWTH 1956 - A continuous Caustic Fusion Plant of 20 TPD was set up for producing Caustic Soda flakes. 1958 A Chlorine Liquefaction Plant was built to liquefy the chlorine gas. 1960 The Capacity was first enhanced to 30 TPD and then further to 40 TPD. It also established new plant for manufacture of Sodium Hydrosulphate with a capacity of 3 TPD. 1967 - A 7 TPD Sodium Hydrosulphate production facility and 60 TPD Caustic Fusion Plant was set up along with 4 TPD Iron free Sodium Sulphate 1975 - Added another 100 TPD Caustic Soda Membrane Unit thereby increased the production capacity to 200 TPD. They also set up their own water Treatment Plant. 1975- They exported commercial Hydrochloric acid to gulf countries 1983- Installed indigenously developed plant to recover mercury from effluents. 1987- Installed Hydrogen firing system 1988- Replacement of Graphite anodes by titanium anodes 1990- Brine dechlorination unit commissioned 1992- A research and development section was set up By 1988, many of the old unit were dismantled. 1997 - A Caustic Soda manufacturing unit using Membrane technology with a capacity of 125 TPD was setup. 1998- A New CCF Plant came in place of existing 60 TPD. 2005 -Addition 25 TPD capacity 2006- Addition 25 TPD capacity

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3.1.2 COMPANY MISSION, VISION AND VALUES OBJECTIVES 1.To produce and market chemicals and caustic soda economically and in an environmentally sound manner. 2.To maintain optimum level of efficiency and productivity. And to secure optimum returns on investment. 3.To maximize profits from projects taken up from caustic soda. 4.To continuously upgrade the quality of human resources of the company and promote organizational development. 5.To continuously improve the plant and operational safety. And confirm to the statutory pollution control standards. 6.To ensure corporate growth by Expansion and diversification.

MISSION TCC is committed to supply quality chemicals at competitive prices to customers. Customers satisfaction, concern for environment and safety are priorities of the company. VISION Utmost level of conservation of all resources including energy. Cost effectiveness in all the operations. Regular up gradation of technologies used in processing. Compliance with laws and statutory regulation

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QUALITY POLICY TCC is committed to enhance customer satisfaction by providing products and related services complying with a continually improving Quality Management System

HEALTH & 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 weightage 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 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.
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The company will carry out safety audits, risk assessment studies, emergency mock drills, periodic assessment of health of its employees as well as status of environment, and implement remedial measures.

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 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

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3.1.3 PRODUCTS AND MARKETS PRODUCT PROFILE Caustic soda, Chlorine and Hydrochloric acid form the backbone of chemical industry. These are important to the countrys economy and very much to steel and cement .TCCs main raw materials are common salt (sodium chloride) electricity and water. The company requires about 3700 units of electricity and 2 tonnes of salt per tonne of caustic soda produced. Common salt is mainly imported from Gujarat and Tamil Nadu. Major products are the followingCaustic 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 colourless, odourless and soapy liquid. TCC is producing two types of Caustic Soda Lye of concentration 30-33% and 50%. It is used as a chemical for dissolving out extraneous matter from wood. It is also used in preparing pure cellulose and for the preparation of Alkali cellulose and for the production of viscose solution. Others use it as a specification agent and also in bleaching, dyeing and mercerizing, For processing monazite and refining of Bauxite, as a purification agent and absorbent for acidic gases and also as a clearing agent. 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 a greenish yellow gas. Chlorine is sold after liquefying. It is used in producing insecticides(DDT, BHC etc.) and pesticides like Aldrin. It plays a huge role in purifying drinking water and sterilizing sewage effluents. Chlorine is also used for manufacturing PVC and allied co-polymers. It acts as a bleaching agent and is used in the production of chloramines and its organic derivatives.

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Hydrochloric Acid(HCl) TCC also produces high purity Hydrochloric acid, it is yellowish green colour. The HCl produced have concentration of 30-34%. Sodium hypochlorite Sodium Hypochlorite, known as soda Bleach, finds its application in bleaching and as a 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 the company is producing under the brand name Ekoclean. It is used as a bleaching agent and as a germicide and cleaning agent. It is also used for sterilization. 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%.

Achievements The major achievements are: 1981-Best performance Award for Safety in the State from Directorate of Factories and Boilers, Government of Kerala 1987-Award for best Performance in Safety in India under Chemical Industries group from National Safety council. 1988-89-Best Pollution Control Award under group Heavy Inorganic Industries in Kerala from Kerala State Pollution Control Board. 1988-90- Prize for Productivity from Kerala State Productivity Council. 1993-Best Performance Award for Energy Conservation in the State of Kerala under group Chemical and Fertilizers above 3000KVA from Government of Kerala. 1994-95 &1995-96-Best Performance Award for Productivity in the State of Kerala under the group Large Industries from Kerala State Productivity Council.

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1996-Best Performance Award for Energy Conservation in the State of Kerala under group Major Industries from Energy Management Centre, Government of Kerala. 1998-Performance Award for Energy Conservation under the group Chlor-Alkali Sector from Ministry of Power, Government of Kerala. 2003-Kerala State Energy Conservation Award in appreciation of the outstanding achievements towards energy conservation and management. 2005- National Energy conservation award chlor alkali sector.

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3.2 ORGANISATION STRUCTURE

Fig. 3.1 Organisation Structure

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ABBREVIATIONS CMD: CHAIRMAN AND MANAGING DIRECTOR GMT GENERAL MANAGER TECHNICAL DGM: DEPUTY GENERAL MANAGER DGM(PJ & SY): DEPUTY GENERAL MANAGER (PROJECT AND SYSTEMS) DM(P1): DEPUTY MANAGER PLANT 1 DM(P2): DEPUTY MANAGER PLANT 2 SE: SENIOR ENGINEER PE: PLANT ENGINEER CE(E): CHIEF ENGINEER ELECTRICAL CE(I): CHIEF ENGINEER INSTRUMENTATION CE(M): CHIEF ENGINEER MAINTENANCE CE(MP): CHIEF ENGINEER MANAGING PLANT DM(E): DEPUTY MANAGER ELECTRICAL DM(I): DEPUTY MANAGER INSTRUMENTATION DM(M): DEPUTY MANAGER MAINTENANCE DM(MP): DEPUTY MANAGER MANAGING PLANT. DM(SY): DEPUTY MANAGER(SYSTEMS) CE(PJ): CHIEF ENGINEER PROJECTS M(T&D): MANAGER TRAINING AND DEVELOPMENT M(HR&W): MANGER HUMAN RESOURCE AND WORKS DM(CS): DEPUTY MANAGER CATERING SERVICE APO: ASSISTANT PERSONNEL OFFICER MM: MARKETING MANAGER

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SAO(C): SENIOR ACCOUNTS OFFICER COSTING SAO(GASF): SENIOR ACCOUNTS OFFICER , GENERAL ACCOUNTS AND FINANCE ASO: ASSISTANT SALES OFFICER. AO(E): ACCOUNTS OFFICER ESTABLISHMENT SAO(PF): SENIOR ACCOUNTS OFFICER PROVIDENT FUND CSIA: COMPANY SECRETARY & INTERNAL AUDITOR

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3.3 FUNCTIONAL ANALYSIS

3.3.1 HRD / TRAINING DEPARTMENT Human resources is considered as the most vital asset of an organization. TCC has a well defined employee power which helps the organization to perform well in the markets. Human resource department is headed by manager (HRD). He is responsible only for the training and development. MAIN FUNCTIONS OF HR / TRAINING DEPARTMENT a .Identifying training needs b. Arrangement requirement training c. Maintaining the training record SCOPE The procedure covers all aspects of training. Arrange suitable training for employees for updating skills based on the identified training needs. Training advisory commitment is responsible for suggesting training requirements of the various department and disciplines Formulating training programs on yearly basics. The committee proposes a training calendar every year Training needs for the years are identified and recorded by the department head. The details are handed over to the training department by respective department head. N e c e s s a r y training programs are arranged by training department to later the identified training needs of the employees. Training department organize training programs using internal faculty or engaging faculty from reputed organization. The training department in consultation with concerned department heads organizes in house training programs on special requirements. When employees attend training programs conducted in house, a feedback about the usefulness of the training is obtained and consolidated. The concerned department evaluates the feedback from the participants after a period of 2-3 months to ascertain the

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effectiveness of the training program. Employees are also sent for training to other reputed institutions. Nominations for sending employees for training in such institutions outside the company are put up for approval of the appropriate authority. As per the guidelines, outside program conductors should submit a feed back on the trainee who undergoes the training. The achievement, noted against annual training calendar is reviewed half yearly by department, this helps in recording the number of programs held, number of employees participated for each programs, the highlights of training effectiveness, feedbacks..Etc. The training department maintains a register on the training program attended by the employees. Training department maintains the format received from participants after getting it evaluated by the concerned department head regarding the effectiveness of training. The managerial personnel of the company are imparted training to improve their managerial capabilities at the HRD centre of the company and outside institutes depending upon the needs identified by the head of the department.

GENERAL TRAINING In order to provide this type of training, one has to determine what is the trainees growth potential, up to what level training is to be done and this requires evaluation of his present performance. NEED BASED TRAINING Need based training will be done on the basis of determining the level of knowledge and skill one requires for a job. Next is to find out how many employees have to be given this training. On the basis of these needs training is given to the employees. CUSTOMER TRAINING Customers are given training on handling of chlorine and other products in various situations. INDUCTION TRAINING It is the training provided to the newly recruited employees to familiarize them with the activities, rules and policies of the organization. It is also done to introduce the new employees to the other employees of the organization.

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TECHNOLOGY TRAINING Company provides advanced training for workers to cope up with the technological changes. Feedback is obtained from employees and effectiveness of the training program is ascertained after a period of 2-3 months. PERSONALITY DEVELOPMENT PROGRAMME They are conducted on a regular time period for the development of both workers and managers INTERNAL TRAINING Every month three day training program is held for workers in the workers education centre, and the central labour industry conducts it. These programs are conducted on a contract basis and are recorded. Annually 20-25 workers from various sections are selected every month and 4-5officers from WEC conduct the training programs. The topics covered include personality development, inter personnel relations, impact of globalization effective communicationetc. Other in house programs are conducted by agencies like Kerala state productivity council. In such programs company can decide upon faculties and topics for training. During the installation of membrane cell plant, officers were sent to Japan for training. So on the job training is prevalent in all sections of the company. EXTERNAL TRAINING PROGRAM These programs are provided for workers conducted mainly inside Kerala and a few of them outside Kerala also. The management does not keep aside a budget for training need. On an average TCC spends more than 11 lakh rupees on the training needs every year.

OBSERVATION OF HRD HRD department organizes training programs using internal faculty or engineering faculties from reputed organization. TCC should see to it that training needs of the workers, supervisors and executives are recognized and separate training program should be developed for each groups.
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FUNCTIONS OF PERSONAL DEPARTMENT 1. Recruitment: through professional and executive employment exchanges and P.S.C 2. Manpower planning: ascertaining the number of vacancies 3. Welfare functions: including statutory and non statutory welfare measures. 4. Grievance handling: as per the provisions of Industrial Disputes Act & factories act. 5. Maintaining company discipline: as per standing order act. 6. Industry relations. 7. Public relations. 8. Job descriptions (Techniques) 9. Job specifications (Techniques) 10. Job analysis(Techniques) 11. Performance appraisal. 12. Training. 13. Staffing. 14. Formulates and implements personnel. 15. Wage and salary administration. 16. Filing various returns relating to employee.

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PROMOTION POLICY It is divided into two parts Managerial Promotion Policy: This is on the basis of a stipulated length of service in the immediate lower grade and it is the main criterion for promotion. Promotion from workers category to officers grade shall be ordered only with board resolution and with permission of government. Time bound grade promotions are considered in the case of lowest managerial scales. Period of 10 years service can be considered for promotion. Non- Managerial Promotion Policy: Vacancies are to be filled by line recruitment through PSC and will be filled as per the policy and procedure laid down through the term of settlement. If a prospective employee has the minimum qualification and stipulated service then he is considered for promotion. If qualified persons are not available for promotion in the respective section/ department, it is notified on the company board. Candidate with the same grade and stipulated length of service considered are not found available after test, a lower grade person with stipulated service can be given double promotion. WAGE AND SALARY ADMINISTARATION A sound plan of wage and salary administration seeks to establish a fair and equitable compensation offering similar pay for similar work. Actually the settlement of wage and salary is done by the accounts department. The trade union / management will decide how much to pay for each employees and workers regarding his performance. OVERTIME ALLOWANCE Wage covered under the Factories Act will be given as overtime wages. According to the provision contained in the Factories Act and the ruler framed thereafter. The overtime wages for workers will be two times of effective wages

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WELFARE PROGRAMMES Labour welfare measures in India can be classified as statutory and non-statutory. Statutory welfare comprises those provisions which are binding on employer by law. This relate to certain essential working conditions and standards of health. Statutory welfare measures provided are accident benefit, annual bonus, drinking water , lunch rooms, sitting facilities, storing and drying facilities ,health facilities and educational allowance. The non-statutory welfare programs provided voluntarily by employer are housing facilities, medical attendance schemes, group accident policy, production bonus, voluntary retirement schemes and performance appraisal. GRIEVANCE REDRESSAL Grievance Redressal committee is statutory. It is to be legally maintained. Trade unions are satisfied with the present conditions here. Hence in TCC Grievance Redressal Committee is not there, as there exist a good employee-employer relationship. Usually grievance Redressal committee consists of an experienced and efficient team of personnel department. And also the moral level of employees are very good. TRADE UNION There has been no labour unrest in the company for the past few years. An atmosphere of trust and mutual understanding has developed between management and labour union. TCC Employees Association is the only one union in TCC which is recognized.

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WORKERS PARTICIPATION IN MANAGEMENT TCC encourages its workers to take part in the management of the company. The workers are often consulted through their union while implementing major welfare programs of the company. In addition to this the workers are also included in some of the committee for taking management decision, which includes committees like a. Canteen Management Committee b. Safety committee c. Grievance committee d. Tri-Party Committee e. Provident fund trust

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3.3.2 MATERIALS DEPARTMENT

Manager Materials is the head of the department. He is responsible for all functions related to purchase, stores and inventory control. Materials department is divided into three sections. 1.Purchase section 2.Stores section 3.Inventory Control section PURCHASE SECTION Purchase procedure:Receiving Material Purchase Requisition (MPR) Evaluation of the MPR Inviting tender from various organization. Evaluation of the tenders and preparing a comparative statement Send tenders to the originator of MPR for recommendation. Issue purchase order as per the recommendation of the originator. Purchase section deals with:Purchase of stock items as required by inventory control Purchase of maintenance items as required by the maintenance planning and plant sections. Purchasing of raw materials required for the process. Purchase of bulk consumable for the process. Purchase of demanded items against delivery through bank.

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STORES SECTION Store section deals with:Maintaining the minimum stock of items required by various departments. Issuing of stock items required by various departments according to the materials request(MR). Preparation of various reports like: Receiving report Inspection reports Evaluation of MPR for purchase of new items Preparation of materials code system (10-digit system). INVENTORY CONTROL SECTION Inventory control is an essential function of stores department. It helps to reduce cost and increase profit of the organization. Codification of material is done by manager, inventory control. For controlling the inventory, certain levels of inventory such as maximum, minimum and re-order level is prepared. When the stock reaches the re-order level, purchase request is made. INVENTORY CONTROL The purpose of inventory control is to avoid surplus and ensure security of materials. The inventories items are classified based on value contributed by each items depending on the cost of and turnover of materials. OBJECTIVES OF INVENTORY CONTROL -Avoid unwanted pilling up of inventory. -Material identification to avoid duplication. -To maintain records. -To dispose scrapped items. -To determine which and how much to replenish.

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FUNCTIONS OF INVENTORY CONTROL Maintaining a minimum stock of items required by various departments. Preparations of various reports regarding inventory such as: Receiving reports. Inventory ledger. Inspection report. Evaluation of MPR. Preparation of material code system to verify items and for easy handling Fix various levels such as minimum level, maximum level, re-order level, damages level etc. of each items. Calculate and minimize lead time. Separate materials into Indian/import.

3.3.3 OPERATIONS DEPARTMENT

Operations department carries out the manufacturing of all the products. The company carries out continuous productions and hence this department plays a very crucial role in TCC. This department is headed by deputy General Manager Operations who is reporting to General Manager Technical. DUTIES AND RESPONSIBILITIES OF DEPUTY GENERAL

MANAGER OPERATIONS: Head of the operations department He fixes the monthly target of the product based on the market requirement He is responsible for modification in the production process and responsible for the affluent discharge. He is the designated emergency controller during any hazardous incident of leakage & emission of toxic gasses/ fluid etc.

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DUTIES & RESPONSIBILITIES OF PLANT MANAGER He is the custodian of the plant. He will plan production activities to meet the production of target set by the AGM (OP). He is responsible for the material consumption. He plans the shutdown activities and carries out maintenance work of the plant. He co-ordinates the operational functions with the manager of other departments for the smooth functioning of the plant. OBJECTIVES OF OPERATIONS DEPARTMENT Maximize production confirming to production specification Optimizing the consumption of electricity and purification of chemicals Minimize the production overheads Maximize the availability of electrolysis for operations. PLANTS IN TCC There are three plants involved in the electrolytic production process of the company. AGC Plant This plant is designed by ASAHII GLASS COMPANY

LIMITED, TOKYO, JAPAN. The plant was commissioned on 29th May 1997. The products are Caustic Soda , commercial Hydrocloric Acid, liquid Chlorine and Soda bleach. The plant consists of 20 electrolyzes. The plant has 125 TPD Caustic Soda production capacity. UHDE 1 Plant The plant is designed by UHDE, Germany. The plant was commissioned in 2005. The plant has a production capacity of 25 TPD of Caustic Soda. It consists of one electrolyze with 54 elements. UHDE 2 Plant This plant is also designed by UHDE, Germany. The plant was commissioned in 2006. The plant has a production capacity of 25 TPD of Caustic Soda. It consists of one electrolyze with 54 elements. RAW MATERIALS USED Raw materials used in the production process in TCC are
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1.Common Salt (raw salt) 2.Electricity 3.Water

TECHNOLOGY USED FOR PRODUCTION The technology used by TCC is Membrane Cell Technology which is environment friendly and energy efficient technology. PROCESS FOLLOWED The process followed in production by TCC is electrolysis of Brine. PROCESS DESCRIPTION Brine (solution of raw salt & water) saturation & purification process are common for AGC,UHDE 1 and UHDE 2 plants. STAGES IN THE PRODUCTION PROCESS Brine saturation and primary purification Sodium Chloride or raw salt is fed into the saturator using the bucket elevator, where it is mixed with the Chlorine decomposed, depleted Brine. This saturated Brine from the saturator goes to precipitation tanks A & B and a mixer tank where Barium Carbonate Soda Ash and Caustic Soda are added respectively to remove Sulphates, Calcium and Magnesium Impurities as precipitates. the Brine along with the precipitates then goes to the clarifier where 90% of the precepts are allowed to settle. The clarified Brine is passed through Anthracite filters where the remaining 10% precepts are separated. HCL is added to the filtered Brine tank to convert impurities to ionic form. Brine is to be admitted to the secondary purification system only after the desired purity level is attained. Secondary brine purification The secondary Brine purification system consists of ion exchange filters. The primary purified Brine is passed through the Ion exchange filters where it undergoes Ion exchange process. Ion exchange materials are insoluble acids & bases, which when converted to salt remain in soluble. These ion exchange materials are used in columns in which the solutions containing ionic impurities like Calcium and Magnesium are in contact with the resin bed. The saturated resin is then regenerated to its original state by acid alkali solution.

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Electrolysis The secondary purified Brine is passed through a heat exchange, fed to Brine head tank and is admitted to the anode compartments of the electrolysis. Dematerialized water is also admitted to the cathode compartment of the electrolysis. Direct current (DC)supply is connected to the anode and cathode. During electrolysis Caustic Soda Lye is produced at cathode which is 32% concentration. Hydrogen gas is also formed at the cathode chamber. Chlorine is formed in the anode where the depleted Brine solution comes out. Caustic Soda is pumped into storage tank and Hydrogen and Chlorine gas goes to their respective treatment section. Chlorine treatment & liquefaction Chlorine treatment and liquefaction involves cooling, washing filtration, drying, compression liquefaction, storage and liquid Chlorine filling in the cylinders, the Chlorine from anode chamber of the electrolysis is first cooled at 30 degree celcious with the cooling tower water. Final traces of salt is removed by using a wet Chlorine filter, it is then again cooled using chilled water. After this the Chlorine gas is divided into two streams for the HCL synthesis and for liquefying. The Chlorine for liquefaction is dried using 98% Hydrochloric acid in drying tower. The dried Chlorine is compressed using acid ring compressors. The compressed Chlorine gas turns into liquid Chlorine in storage tanks. Chlorine for the HCL synthesis unit is fed by using chlorine blower. H2 treatment and HCL analysis Hydrogen gas from the electrolyser is washed with water in washing chamber, cooled using tower water and admitted directly to Hydrogen blower, after separating the condensate. The Hydrogen gas is used for the HCL synthesis and also as a fuel in the CCF plant.

Hydrogen for HCL synthesis is fed to the oven using Hydrogen blowers. Here it is burned in the presence of Chlorine. The resulting HCL gas is absorbed in the water flowing down the oven to produce 31% commercial HCL gas.

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Continuous Caustic fusion It is done in CCF (continuous caustic fusion) plant. CCF plant is mainly for concentrating 32% NaOH lye to 50% NaOH lye and then to 98%-99% NaOH melts which is converted as flakes. The 32% NaOH lye is stored in the main storage tank, as a part of which goes for sale. The remaining part of 32% lye is passed through three evaporators Ev1, Ev2, Ev3.In the first evaporator the Caustic Soda lye is heated using vapours generated in Ev2 andEv3.the steam generated in Ev1 is then drawn by a vacuum pump through a condenser and thus Ev1 is working under vacuum and at 70-80 degree Celsius. The outlet from Ev1is 40% Caustic Soda lye which is passed through Ev2 where it is evaporated to 50%Caustic Soda lye using 9 kg/-cm2 steam from boiler. A portion of 50% Caustic Soda lye is cooled and sold. The remaining portion of 50% Caustic Soda lye is pumped to Ev3 where it is heated using heat transfer salt which is a mixture of 53% Potassium Nitrate, 40%Sodium Nitrate and 7% Sodium Nitrate. In Ev3 the 50% Caustic Soda lye is concentrated to 98%-99% Caustic Soda melt which is converted as Caustic Soda flakes in a flakers drum. Soda Bleach preparation Excess of waste Chlorine can not be disposed as a waste gas. But it has to be absorbed in dilute Caustic Soda lye to produce Soda bleach. Thus the Soda bleach plant serves also as a pollution control system. A part of 32% Caustic Soda lye, chlorine is used for the preparation of Soda bleach. The excess Chlorine at the time of plant shutdown or start up and also from cylinder filling station goes for Soda bleach preparation, 32% Caustic soda lye is diluted using de-mineralized water. The solution is passed through two absorbing towers, where it reacts with Chlorine gas so as to produce Soda bleach

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3.3.4 TECHNICAL DEPARTMENT

There are two main sections in this department: 1.The Technical Service section The technical service department is concern with the monitoring of production process. This includes making a comparative analysis if any deviations are found. Reports are maintained on daily as well as monthly basis and internal as well as external basis. The reports are sent to all other departments. I. Daily report includes the following:

Daily production details Material consumption details Sales Stock Power consumption Over time reporting etc. II. Monthly internal reports include the following:

Production process report Material balance Chlorine utilization Raw salt analysis etc. 2. COMPUTERIZATION & IT DEVELOPMENT All functional areas are fully computerized. That is function wise, all functions are fully computerized. But in depth wise TCC is trying to increase the depth of computerization. The software in use is clipper and paradox. The server configuration is IBM X 220 and the server capacity is 18GB hard disk running on Novel 4.11 operating system. The server class machines are P3, 1 GHz, 128 MB RAM, 18 GB hard disk plan to install Oracle based software for all the departments. Presently there are two Local Area Networks (LAN). One pertaining to
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financial data which is called financial package system and the other related to the materials managements which is the materials management system. SAFETY & POLLUTION CONTROL SYSTEM, The safety policy of the company states that: TCC is committed to provide every one of its employees & the related public an accident free and healthy environment in its efforts to manufacture high quality products with all stationary requirements in this regard. The company will provide a work environment in which identified hazards are controlled if eliminations not feasible and will provide personal protection requirements like gloves, file mask welding shield, safety shoes, helmets, safety belt, skin protective ointmentsetc .whenever necessary. Accident prevention is the direct responsibility of the line management and will be an important criterion for performance appraisal. Line management will ensure that all safety measures are incorporated in the operating and maintenance procedure as well as in any process technology changes in the plant. The company will ensure that health & safety aspects are given due consideration in decisions regarding purchase of plant equipments, machinery & materials. 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 health of its employees as well as status of environment &implement remedial measures. Employee, consumers & public awareness where necessary, will be imparted with the required education, training & retraining safety and health aspects related to the process sand products. Contractors, sub-contractors, workers, transports & visitors entering the factory shall be required to observe health and safety practices of the company in all their activities.

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The company will include a resume of its health and safety performance in its annual reports. FUNCTIONS OF TECHNICAL SERVICE DEPARTMENT 1. Deviation analysis of plant operating parameters. 2. Collection and computation of production details, raw materials, input output details. 3. Downtime or failure analysis of plant and equipment and providing technical advice. 4. Preparation of monthly raw materials and input output details. 5. Give suggestions on corrective action to avoid downtime of equipment. 6. De-bottle necking to improve production and efficiency of operation. 7. Organizing energy audit and implementation of energy saving schemes. 8. Preparation of schemes for improvements or modification of process, plant and machinery. 9. Vetting of proposal originated by other department. 10. Inspecting or testing of equipment for the plant. 11. Study and report on process upset accidents if any etc. 12. Any other job specifically assigned by management.

POLLUTION CONTROL In line with this, the company is carrying out various schemes including extensive pollution control measures, on site emergency planning, training of employees and customers on accident prevention and safe handling of chemicals. The company aims to minimize all adverse environmental and health. Impact arising out of its operation, converse all kinds of resources and to obey all statutory and legal regulation. Acidic and alkaline effluent steams are collected in pits. If the Sodium Chloride content in the acidic stream is within limit, it is used in Hydrochloric acid. The remaining effluent are mixed and neutralized. The PH is corrected to 7 with extra acid/alkali
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addition. It is then fed to the lagoon where better homogenization of effluent takes place. Also Sodium Bisulpahte solution is added to the Chlorine content. Thus the effluent let out to the river is neutral and free of Chlorine content. Also the Chlorine gas during plant start-up and shutdown tripping of Chlorine compressor, from Chlorine cylinder filling station is collected and absorbed in dilute Caustic Soda lye to produce Soda Bleach which is sold to the consumers.

3.3.5 ENGINEERING DEPARTMENT

The Engineering department has been divided into four sections. 1. Electrical Department 2. Mechanical Department 3. Instrument Department 4. Civil Department ELECTRICAL DEPARTMENT There are two functions for this section. They are as follows: a)OPERATIONS : Electrical supply is received from KSEB through substations. Direct Current (DC) is needed for electrolysis and Alternating Current (AC) is converted into DC in rectifier plants. AC is used for auxiliary purpose. The main function of the operational section is to ensure uninterrupted power supply. b) MAINTENANCE This section is headed by chief engineer in planning and implementing on engineering works. This section also provides assistance to project development of new project. MECHANICAL DEPARTMENT Mechanical section found to be the back bone of TCC. All types of annual maintenance is handled by this section and look forward to maintain the machinery in the best possible manner and ensure healthy and sound flow of workers within the organization. Following are some of the objectives: To ensure all equipment engaged in production are in good condition
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To cut down tine of critical equipments To reduce cost due to inefficiency in equipment handling. INSTRUMENTATION DEPARTMENT The main functions of this section are as follows: Plant processing operation and control of plant and equipment. Keeping record for it The maintenance and up keep of equipments. CIVIL DEPARTMENT Civil section is an independent department headed by chief engineer. The main role of this section is the construction of the building and other structures of the company. It is also engaged with the routine shut down works. The main functions of this section are as follows: Maintenance of existing building. Painting and insulation Critical hot and cold insulation of tanks and pipelines.

3.3.6 PROJECT AND SYSTEMS DEPARTMENT

The main function of the projects and systems department is capacity addition and implementation of new technologies. It is an independent unit with a different function. Their main functions to prepare feasibility reports and to invite tenders for execution of new projects. MAIN FUNCTIONS OF PROJECT DEPARTMENT Involves planning, feasibility study and implementation of technologies Preparation of detailed reports Preparation of feasibility reports Evaluation of tenders
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Invitation of tenders through advertisements Agreements Execution Hand over the new projects to operations department FUNCTIONS OF SYSTEMS DEPARTMENT Implementation of new ERP system Maintenance of website Maintenance of all computers Maintenance of all printers and peripherals Maintenance of all networking systems Management of broad band and internet connections

3.3.7 SECRETARY AND INTERNAL AUDIT DEPARTMENT

Memorandum and articles of association, certificate of incorporation and other statutory registers under the Companies Act 1956 are maintained in the companies registered office at Udyogamandal. DUTIES AND RESPONSIBILITIES OF THE COMPANY SECRETARY Conducting board meeting for the organization The legal interpretation of the profit and loss statement and balance sheet Filing returns with registrar of companies Drafting agreements with the financial institutions under the Companies Act Conducting the annual general meeting and extra ordinary general meeting if required Gratitude function of the organization Providing public information under right to Information Act, 2005

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Liaison with Registrar of companies, LIC officials and other government and private agencies. FUNCTIONS Pre audit of all purchases and contract files Verification of sales orders and related records Verification of payrolls and wage salary of workers, staff and officers Increment proposal of management staff, salary fixation etc Verification of various vouchers, journals, ledgers, and other records of financial and cost accounts sections. Operational audit performance, audit, performance, management audit etc if necessary

3.3.7 MARKETING DEPARTMENT

Marketing department in TCC is product centred with separate personnel entrusted to each product. TCC is the only chlor-alkali company in Kerala. So the firm has more or less monopolistic market in Kerala. TCC gives primary importance towards satisfaction of its customers. Marketing department consist of an office section and an issue section. All documentation work comes under office section and all works relating to sales comes under the issue section.TCC will adopt marketing strategy according to product nature, market situation, demand of the product etc. TCC gained about 80% of the market share in Kerala. MAIN FUNCTIONS OF OFFICE SECTION Preparation of sales quotation, letters, amendments etc, maintenance of sales officers register books and other necessary information. Preparation of sales budget, sales plan, monthly allotment etc, correspondence with parties and follow up of routine and regular matters. Preparation of sales order, dispatch and delivery notes etc

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Upkeep of all files up to date. THE MARKETING MIX The four Ps in the marketing mix are as follows: 1. Product Products of TCC include caustic soda, chlorine, hydrochloric acid & sodium hypochlorite. The industries served are soap, insecticides, pharmaceuticals, chemicals, mineral processing, disinfectant, textiles, rubber, water purification and petroleum. The only branded product is soda bleach and the brand name is EKOCLEAN. 2. Price The company has adopted a differential pricing policy. The price is fixed through negotiation for long term contracts. For small customers, price is fixed from time to time. An open body named Alkali Manufactures Association of India (AMAI) fixes selling price for a particular period. Price of the product is fixed by adding the production costs, excise duty, VAT and freight charges. Tenders are issued to the customers with a price quoted and if it turns to be a lowest bid and satisfies the customers the sales are done. The major markets are Kerala, Karnataka and Tamil Nadu. Except caustic soda, all other products are sold in South India. Long term contracts are being entered with customers. Price concessions are given to long distance customers taking freight elements into account for transportation of the product, raw materials and also all other logistic purpose. Company has given contracts to outside agencies. The contract is placed for each material and that is done on an annual basis. 3.Place Channels include direct selling to customers for caustic soda there are some agencies outside Kerala for marketing the products. The entire marketing is done at the company headquarters at Udyogamandal and there are no other marketing offices. All payments take place through SBT (State Bank of Travancore). Place is concerned with various methods of transporting and storing goods and then marking them available for the customer. Getting the right product to the right place at the right time involves the distribution system.
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4.Promotion All the products are industrial products. It lacks a good promotion policy to withstand competition from private sector. The customers are aware of the existence of the company and when and how to get the product. Hence there are no much promotional activities. Marketing factor is price which depends upon the national and international price. The company does advertise in some academic and trade journals like chemical magazine etc. The promotional activities are done also through the company website. ACTIVITIES OF MARKETING DEPARTMENT Whenever a company places an advertisement regarding the requirement of chemicals like caustic soda lye or flakes with the specification for the chemical payment terms, quantity required, validity period, the companies that are ready to supply (like TCC) will send tenders to the required company. This is also known as tender document. In a tender document mainly two documents are specified: Technical Bid This means specification about the quality aspect of the product, how much quantity can be given within a period as specified by the customer company. These terms are well explained in the technical bid. 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 purchasers, payment terms are also explained. Along with this offer is placed the customer company which will be attracted with Earnest Money Deposit (EMD). This deposit is for the purpose of assuring the customer company that if they accept the TCC offer, certainly the product will be supplied to the customer. The deposit will be refunded by the customer company after the purchase is made. The EMD is only attached in case of bulk purchase. After accepting the offer placed by TCC, the customer company will place a purchase order. The purchase order explains the details of the product, quantity, basic price... Etc. Sales order is placed and will be verified by Deputy Marketing Manager. He makes arrangement in respect of supplying the product to the customer. The acceptance offer is usually by selecting the lowest price. From the
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collected tenders if price by TCC is higher than any other parties, those parties will be done so as to bring the price lower. If the price is not lowered, the offer will be rejected.

3.3.8 FINANCE DEPARTMENT

Deputy finance controller is having the overall responsibility of the finance department. Which include co-ordination of audit, Board meeting and company taxation. Deputy finance controller co-ordinates the function of bill passing establishment section, debt collection, cash and bank. The internal audit system is carried out in the company by the initial audit section headed by the chartered accountant. Regular reports are given to the department heads of taking corrective actions where necessary, which is submitted to the MD. The company has an effective budgetary control system. The budgets are reviewed, deviations analyzed and necessary corrective actions is initiated. Important variations relating to raw materials, furnace oil, electricity etc are analyzed and furnished to various levels of management for corrective actions. The key budget factor is the power availability which is estimated and a rough picture of anticipated power shortage is drawn up. The main function of bill section is passing of bills, which is done after checking quotation, order and production receives/ work achieved. Bills are passed after seeing that a material received is in conformity with the purchase order .Finance is considered as the valid part of any business organization. It is the function which controls the procurement of allocation of funds in the business operations.

THE MAIN FUNCTIONS OF FINANCE DEPARTMENT Generation of funds and utilization of funds Treasury operations Financial book keeping and finalization Cost recording Sales accounting
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Bill passing Budgeting and financial control Preparation of wages bills Preparation of balance sheet is done in accounting section. TCC has an exclusive PF trust for their employees. The company gives money to the trust. Trust invests this properly. Retirement benefit is issued from here itself. The companys liability towards gratuity to employees is covered by group gratuity scheme with the LIC of India. SIGNIFICANT ACCOUNT POLICY a. All revenue cost, assets, and liabilities are on the accrual basis, except customs duty. b. Sales include excise duty and sales tax. Inventories valuation-Stock in trade: Caustic soda lye and flakes are valued at works cost or net realizable value, whichever is lower. By products are valued at net sales realization during the year.-Raw materials, mercury, packaging materials, fuel oil stores and spares are valued at weighted average cost.-Tools and equipments are shown at revalued cost. d. All fixed assets are carried at cost less depreciation. Interest on loan during the period is added to the cost of fixed assets e. Depreciation-For plant and machinery depreciation is calculated on a straight line basis specified in schedule XIV to the companys Act, except for the membrane whose life is only 4 years.-For buildings, service equipments, furniture, fixture, office equipments ,electrical installation etc depreciation is calculated on a written down value basis at the rates specified in the Act. f. In foreign exchange transaction all assets and liabilities are translated at the relevant exchange rates at the end of the financial year. g. Sales of goods are recognized on accrual basis

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3.4 ORGANISATIONAL ANALYSIS

3.4.1 SWOT ANALYSIS STRENGTHS Only Chlor alkali unit in the state Good record of physical and financial performance in the past. Qualified work force, brilliant engineers, managers and skilled workers. No strike reported for the last few years . Companys products are basic chemicals and are considered to be the building blocks of chemical industry. The company has 80% market share for its products in Kerala. The company is a feeding industry to other companies. Excellent management labour relation. Strategic location with no other competitors around at present Availability of water in abundance as TCC is situated in the banks of river Periyar. Excellent transport facilities and proximity to national highway, railway line ,seaport, and airports as well. TCC is a pioneer in the chlor alkali market and has created reliability credibility among the customers WEAKNESS TCC is a public undertaking. The major decisions of the company have to be approved by the government which delays the implementations of plans and thereby causing organizational inflexibility. The major weaknesses are; Lack of profit motive leads to poor performance Employee cost is high compared to other firms (competitors)
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Large consumption of energy , 60% of manufacturing cost is electricity Raw salt is not available in vicinity so transportation cost is very high OPPORTUNITIES A sodium chlorate plant is coming up in TCC, which is the raw material for ammonium per chlorate experimental plant in ISRO. Economic development of the country may results in higher demand for the product especially for chlorine in near future. Proposal for a hydel project will benefit TCC and the power so obtained can be utilized for running the plants of TCC. Thus reducing the cost incurred on electricity. THREATS Competition from foreign countries High cost of production Higher in price of electricity The infra structure of the company is obsolete compared to others The import duty of central government is not fair and it caused periodic fluctuations in the price of the companys product

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CHAPTER 4 OBSERVATION AND CONCLUSION

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4. OBSERVATION AND CONCLUSION

4.1 OBSERVATION The major customers of TCC are pharmaceuticals companies, soap industries, insecticides and pesticides industries, paper industries and rayon industries. The major competitors are DCW and Chemplast. Location preference, reference and quality are the major criteria for selecting manufacturer. 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 is good. 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. No major environment pollution has been reported for the past 50 years of operations

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4.2 CONCLUSION The organisational study at TCC helped to have an industry exposure and to understand the functions of managers and employees at different levels of the organisation. It also helped to understand the environment in which the company works, strengths and weaknesses of the firm. TCC was established in 1950, with a nominal production of 20 TPD. TCC has the distinction of being Indias pioneer producer of Rayon grade caustic soda with a capacity of 175TPD. TCC have marked changes in the technology of process and also stresses importance in productivity, employees morality quality and clean environment. TCC is looking forward to achieve more and more greener pastures in the days to come. 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. 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 Robbins Stephen P,Organisational Behaviour, Pearson Education, New Delhi, 2010, 10th edition. Kolter Philip, Marketing Management, Prentice Hall of India pvt.ltd, New Delhi, 2003 Chemfab Alkalies. chemfab. Retrieved May 7, 2012, from

www.chemfabalkalis.com commerce. Retrieved May 3, 2012, from commerce.nic.in TCC. tcckerala. Retrieved May 5, 2012, from www.tcckerala.com

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