CHAPTER 1

INTRODUCTION

1

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.

2

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or unpublished sources includes: Company records, Annual records, Official sites of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.

3

CHAPTER 2

ANALYSIS OF THE BUSINESS ENVIRONMENT

4

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.

5

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 industry’s 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. India’s 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 India’s total chemical imports), followed by USA

(8%), Saudi Arabia

6

(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 chlor-

alkali 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 country’s 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.

7

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 Caustic-

Chlorine 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

8

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 TCC-

Chemfab 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 Chemplast’s 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

9

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 Company’s 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. DCW’s 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.

10

CHAPTER 3

ORGANISATIONAL ANALYSIS

11

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

12

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

13

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.

Customer’s 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

14

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.

15

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, 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

16

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 country‘s economy and very much to steel and

cement .TCC‘s 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 following-

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 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.

17

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. 18

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.

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”.

19

3.2 ORGANISATION STRUCTURE

Fig. 3.1 Organisation Structure

20

21

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

22

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

23

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. Nece s sa ry 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

24

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 trainee’s

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.

25

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 communication…etc. 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.

26

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.

27

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

28

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.

29

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

30

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.

31

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.

32

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.

33

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

34

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

35

Magnesium are in contact with the resin bed. The saturated resin is then regenerated

to its original state by acid alkali solution.

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.

36

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

37

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

38

configuration is IBM X 220 and the server capacity is 18GB hard disk running on

Novel 4.11 operating system. The server class machines are P3, 1 GHz,

128 MB RAM, 18 GB hard disk plan to install Oracle based software for all the

departments. Presently there are two Local Area Networks (LAN). One pertaining to

financial data which is called financial package system and the other related to the

materials 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 ointments…etc .whenever necessary.

Accident prevention is the direct responsibility of the line management and will be an

important criterion for performance appraisal. Line management will ensure that all

safety measures are incorporated in the operating and maintenance procedure as well

as in any process technology changes in the plant.

The company will ensure that health & safety aspects are given due consideration in

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.

39

Contractors, sub-contractors, workers, transports & visitors entering the factory shall

be required to observe health and safety practices of the company in all their

activities.

The company will include a resume of its health and safety performance in its annual

reports.

FUNCTIONS OF TECHNICAL SERVICE DEPARTMENT

1. Deviation analysis of plant operating parameters.

2. Collection and computation of production details, raw materials, input output

details.

3. Downtime or failure analysis of plant and equipment and providing technical

advice.

4. Preparation of monthly raw materials and input output details.

5. Give suggestions on corrective action to avoid downtime of equipment.

6. De-bottle necking to improve production and efficiency of operation.

7. Organizing energy audit and implementation of energy saving schemes.

8. Preparation of schemes for improvements or modification of process, plant and

machinery.

9. Vetting of proposal originated by other department.

10. Inspecting or testing of equipment for the plant.

11. Study and report on process upset accidents if any etc.

12. Any other job specifically assigned by management.

POLLUTION CONTROL

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

40

and alkaline effluent steams are collected in pits. If the Sodium Chloride content in

the acidic stream is within limit, it is used in Hydrochloric acid. The remaining

effluent are mixed and neutralized. The PH is corrected to 7 with extra acid/alkali

addition. It is then fed to the lagoon where better homogenization of effluent takes

place. Also Sodium Bisulpahte solution is added to the Chlorine content. Thus the

effluent let out to the river is neutral and free of Chlorine content. Also the Chlorine

gas during plant start-up and shutdown tripping of Chlorine compressor, from

Chlorine cylinder filling station is collected and absorbed in dilute Caustic Soda lye to

produce Soda Bleach which is sold to the consumers.

3.3.5 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

41

the best possible manner and ensure healthy and sound flow of workers within the

organization. Following are some of the objectives:

To ensure all equipment engaged in production are in good condition

To cut down tine of critical equipments

To reduce cost due to inefficiency in equipment handling.

INSTRUMENTATION DEPARTMENT

The main functions of this section are as follows:

Plant processing operation and control of plant and equipment.

Keeping record for it

The maintenance 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

42

Preparation of detailed reports

Preparation of feasibility reports

Evaluation of tenders

Invitation of tenders through advertisements

Agreements

Execution

Hand over the new projects to operations department

FUNCTIONS OF SYSTEMS DEPARTMENT

Implementation of new ERP system

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

43

Gratitude function of the organization

Providing public information under right to Information Act, 2005

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.

44

Preparation of sales order, dispatch and delivery notes etc

Upkeep of all files up to date.

THE MARKETING MIX

The four P’s 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

45

available for the customer. Getting the right product to the right place at the right time

involves the distribution system.

4.Promotion

All the products are industrial products. It lacks a good promotion policy to withstand

competition from private sector. The customers are aware of the existence of the

company and when and how to get the product. Hence there are no much promotional

activities. Marketing factor is price which depends upon the national and international

price. The company does advertise in some academic and trade journals like chemical

magazine etc. The promotional activities are done also through the company website.

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,

46

quantity, basic price... Etc. Sales order is placed and will be verified by Deputy

Marketing Manager. He makes arrangement in respect of supplying the product to the

customer. The acceptance offer is usually by selecting the lowest price. From the

collected tenders if price by TCC is higher than any other parties, those parties will be

done so as to bring the price lower. If the price is not lowered, the offer will be

rejected.

 

3.3.8 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

47

Cost recording

Sales accounting

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 company’s 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 company’s 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

48

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 .

Company’s 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;

49

Lack of profit motive leads to poor performance

Employee cost is high compared to other firms (competitors)

Large consumption of energy , 60% of manufacturing cost is electricity

Raw salt is 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 company’s product

50

CHAPTER 4

OBSERVATION AND CONCLUSION

51

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

52

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 India‘s 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, employee’s 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

53

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

54