CHAPTER 1: INTRODUCTION

INTRODUCTION

Organization is a social group which contributes tasks for a collective goal. It is the integration of various departments and its functions. For the success of an enterprise it is important that there must be a well established organizational structure and proper levels of administration. So as much as a future manager is concerned, it is essential to carry out a study about various aspects of an organization and to be familiar with the different organizational functions. An organization study forms an important part of the curriculum of our MBA program which is conducted in our 3rd semester. The main purpose of the study is to provide an opportunity to the students to learn, observe, assimilate and analyze the various objectives, vision and functioning of various departments within an organization. It may also be helpful for the students to gather a practical knowledge within an organization and correlate it with the concepts and theories which have been studied so far in class room. For my study, I have chosen The KERALA MINERALS AND METALS LIMITED Chavara which is a well reputed company fully owned by the State Government of Kerala. KMML is a leading profit earning enterprise which is worlds first fully integrated Titanium Dioxide plant. The company has indulged in the manufacturing of world class Titanium Dioxide. It has been ranked among the top ten companies in the world for producing its own product which consist of mining, mineral processing and manufacturing. The company is engaged in the production of Titanium Dioxide Pigment, Titanium Tetra Chloride, Illuminate, Rutile, Leucoxene, Zircon, Silliminite, Monazite, and Iron Oxide Bricks.

1.1

Objectives of the Study

To acquire knowledge about the functional as well as the managerial
aspects. To understand the organizational profile, the structure of authority and different levels of management. To compare theoretical knowledge with actual practices. To understand the organization structure and the working of various departments. To know the quality standards.

1.2

Methodology of the Study

The organization study is conducted by collecting the information from

the various sources. Sources of data a. b. Primary sources Personal interviews Through direct discussions with the employers and employees Through observations. Secondary sources Manuals Website Annual reports Magazines For doing this organization study, I have gone through three phases of data collection. Firstly, I collected information from the publications of KMML like manuals, reports, articles etc.

Secondly, I interviewed the heads and staffs of each department and studied their role in the organization.

Finally, I visited operational sites of each department and correlated with the first hand knowledge which I have gathered.

1.3 Scope of the Study

I have chosen KERALA MINERALS AND METALS LIMITED for my organization study, situated in Chavara which is 18kms far from Kollam. It is a well reputed public sector undertaking in Kerala. In this study I have mainly focused on different processes and functions which take place in various departments in KMML, Chavara. Through this organization study I have gathered a firsthand knowledge about the organization and also I have made an attempt to know about the different facts and complex factors within an organization.

1.4 Limitations of the Study

Due to complex organizational structure, it was difficult to collect information. It was difficult to gather information due to its secrecy.

Due to an enormous size of the employees, there may be an influence of personal bias. Entry to some organizational departments was denied. Activities of the trade unions made it difficult to collect data.

1.5 CHAPTERISATION
The scheme of chapter reporting is as stated below: Chapter 1: INTRODUCTION, OBJECTIVES OF THE STUDY METHODOLOGY OF THE STUDY, SCOPE OF THE STUDY, LIMITATIONS OF THE STUDY, CHAPTERISATION Chapter 2: INDUSTRY PROFILE Chapter 3: COMPANY PROFILE Chapter 4: DEPARTMENT ANALYSIS Chapter 5: SWOT ANALYSIS, MICHAEL PORTERS FIVE FORCE MODEL ANALYSIS Chapter 6: FINDINGS, SUGGESTIONS AND CONCLUSION BIBLIOGRAPHY

CHAPTER 2: INDUSTRY PROFILE

Industry Profile
In General (World Scenario): Titanium metal (Ti) is the ninth most abundant element found in the earths crust. Aerospace, sport and medicine are some of the common areas were the metal has applications mainly due to its high resistance to corrosion. The credit of recognizing the existence of titanium goes to Rev.William Gregor, who found traces of black magnetic at Manaccan Parish (UK) in 1790 and he named it menaccanite. But it was in 1795, M.Klaporth who discovered Titanium. He examined rutile and identified it as an oxide of a metal and named it as Titanium after Titan of Greek mythology. It was named titan because according to Greek mythology Titan is a God who is very hard to be pleased and since the reactivity of the pigment was feeble with almost anything. The first commercial product of titanium was an alloy additive to steel, where few alloys were developed in commercial scale. The use of titanium minerals in welding electrode coating gained acceptance in the mid thirties while titanium metal has been of commercial importance since 1948. The various titanium minerals include Rutile, Anatas, Ilmenite and Leucoxene etc. Mining of Ilmenite is carried out in several countries like Australia, Norway, Srilanka, Malaysia, South Africa and India. The total reserved of world Ilmenite is estimated to be approximately 1722 million tonnes range of heavy minerals in places deposits varies from twenty to eighty percentages. Titanium dioxide is far more stable than any other pigment. Its perfect non toxicity and chemical inertness make it as an ideal choice as a white pigment. The light scattering property of finely divided titanium dioxide is unmatched by any other non material. The chemical is available in two crystalline forms, viz. Anatase and Rutile, which are of much commercial significance. This is because of the unique combination of its superior properties of high refractive index, low specific gravity, high hiding power and non toxicity. It also has high tinting strength and dispersion properties as well as chemical stability. The titanium dioxide market is unique in that while it is a product approaching 100 years old, there are still no functional alternatives that provide the same value for the use of customers. The industry has gone through a metamorphosis in the past decade. Looking over the
7

next 20 years, at least some new Titanium dioxide pigment will be made, though most of industries additional capacity will come from expansion pigment consumption rose sharply in Western Europe and Asia/Pacific (excluding Japan) during the year 2000. East Asia is presently the most attractive region in the world for Titanium dioxide. Top industries of TiO2 in the world DuPont Co. Wellington, USA Ishihara Ltd, Japan Rhone Poulene, France Boyer Lever Kuser, West Germany Kermira Helsinks, Finland Hoitex, USA Millennium, Germany Henduk Seoul, Korea Fletcha Titanium Products, New Zealand Totins, Netherlands

National Scenario (India): In 1909, a German Dr Schumberg discovered the presence of monazite in the Black Beach Sand of Manavalkurichi in the East Travancore state. The presence of mineral sand in the coir being exported later led to the discovery of certain other elements. The Geological survey conducted later on in India, established the occurrence of monazite and metals like Ilmenite, Rutile, Leucoxene, Silmenite and Zircon. India has a wealth of titanium minerals with very low ratio of resource to utilization. A sound titanium dioxide industry is essential to ensure optimum utilization of these resources as well as to develop a vibrant industry in the field of this strategic mineral. Although some technology base is available in the country for both sulphate and chloride

processes of titanium dioxide pigment manufacture, additional imports of knowhow and technology are considered essential to update the existing sulphate and chloride technologies in the country. The Indian raw material may be upgraded to synthetic Rutile of titanium slag before being exported to fetch better returns. Presently synthetic Rutile is being manufactured in the country by IRE, KMML and two other private companies. However there is no project to manufacture Titanium slag which can be used for sulphate process, chloride process and also for manufacture of titanium sponge. This gap needs to be bridged at the earliest. Graphical representation of Titanium dioxide consumption
57

60 50 40 30

20 20 10 0 paints &coating plastics paper others 13 10

List of companies in India: Presently there are four units in India engaged in the manufacturing of the Titanium Dioxide Pigment with a combined capacity of 44,560 metric tons per annum. These units are: KMML, Chavara Travancore Titanium Product Ltd (TTP), Trivandrum Kilburn Chemical Ltd, Chennai Kolmark Chemical Ltd, Kolkata State Scenario (KERALA): Gods Own Country is best owned with a long coastal belt. At present in Kerala, TTP and KMML are the only two manufacturers who produce titanium dioxide pigment. Indian Rare Earth Ltd (IRE), a Government of India
9

undertaking has a mineral separation unit in Chavara which separates minerals from the beach sands. IRE also operates two mineral separation units, which are located in Manavalakurichi in Tamil Nadu and Challarpur in Orissa. Firstly Travancore products were started by His Highness Chitira Thirunal in 1946 and titanium dioxide using the sulphate process technology. Later the KMML which was situated in Chavara came into existence and started producing Titanium Dioxide with the help of HCL acid process technology (chloride technology). Present Status: Titanium dioxide is a key ingredient in automobile paint production and currently is in short supply. As the demand for cars and other consumer goods increases so does the demand for titanium dioxide. The global titanium dioxide sector ended 2010 with prices soaring through the market. 2011 the industry attained gains and are reported to be significant as well. Challenges: Competitors like DuPont, Ishihara, and Crystal. Duplication chances by stockiest. Mining policy of entrants in flock to this sector. Development of products for variety of uses. Financial sources. Political interference. Unavailability of skilled labourers. Complex management structure. New technology development. The central decision to remove tax for the import of Titanium dioxide

product.

10

CHAPTER 3: COMPANY PROFILE

11

COMPANY PROFILE
The Kerala Minerals and Metals Ltd, KMML is the largest manufacturing unit among the state level public sector enterprises while establishing this industry; Brief History (Background): The history of the beaches of Sankarmangalam and nearby areas is inextricably intertwined with the history of the precious beaches and KMML. Precious, as was discovered in 1909 by the German scientist Dr. Schomberg who found traces of monazite in the sand flakes on the imported coir from Sankaramangalam. The beaches with a wealth of rare earth minerals became the centre of scientific attraction.

By 1932, a visionary private entrepreneur established the F. X. Perira and Sons (Travancore) Pvt. Ltd, the forerunner to KMML. During the course of time, KMML changed hands three times over. In 1956 it was taken over by the state government and was placed under the control of the industries department. The unit was subsequently converted as a limited company in 1972 by the name of The Kerala Minerals and Metals Ltd.

Initially the company had only one unit know as Mineral Separation Plant. In 1974 the company received intent for the production of Titanium dioxide (Tio2) pigment using chloride process. In 1976, KMML registered its second unit known as Titanium dioxide pigment plant. Its construction started only in 1979 and total capital cost was Rs.144 crore. The plant was commissioned in December1984. KMML become the first and only integrated Titanium dioxide plant in the world. KMML was commissioned in 1984 it was not able to operate efficiently due to technical problems. Due to these problems the company has to suffer an accumulated loss of more than the capital investment over a period of 8

12

years. In the above circumstances, it was in 1991 that the entire personnel of KMML from top management to down to the lowest workers started to think individually and collectively about the requirement of a Turn Around. A strategy was planned and implemented with the whole hearted support of the workforce during the year 1991-1993. It started to yield results and the company attained the breakeven level by 1993. From 1993-1994 onwards, the company started to make profits and wiped out the entire accumulated loss within a few years and repaid the long term loans. Thereafter, it is the story of success and growth. Today, with over 2000 employees and a range of products, KMML has become part and parcel of local and international life. The construction of titanium dioxide pigment using chloride technology began in 1979, and was commissioned in 1984 as the first and only integrated titanium dioxide plant in the world. Vision, Mission and Objectives of KMML Vision of KMML KMML has a vision to be the world class producer of mineral sand based value-added products. Mission of KMML

1. To become the noble agency for promoting and establishing minerals based industries in the state to ensure value addition and effective and controlled exploitation of the mineral reserves. 2. To develop adequate supply base for the services and utility for development of the mineral based industry. 3. To create more awareness about corporate social responsibilities for chemical industries in the state. 4. To become the leader in controlling green house gas emission so as to promote the concept of green earth.
13

Objectives of KMML

1. To exploit the mineral wealth abundantly available in the coastal belt. 2. To manufacture value added product like Titanium Dioxide and Titanium metal through chloride route technology. 3. Large scale generation of employment in the state. 4. Overall development of local area in particular and state in general.

Nature Of Business: The nature of business of KMML is that it is a Manufacturer of Titanium Dioxide as the primary product. Bringing more to your everyday life, KMML touches you in numerous ways. Be it the dress you wear, the cosmetics you use, the medicines you take, the paints you decorate your home with or the utility plastic products, our products are there. Eco-friendly & socially committed, it is the only integrated Titanium Dioxide facility having mining, mineral separation, synthetic rutile and pigment-production plants. Apart from producing Rutile grade Titanium Dioxide pigment for various types of industries, it also produces other products like Ilmenite, Rutile, Zircon, Sillimenite, Synthetic rutile etc. Manufacturing Titanium Dioxide through the chloride route, KMML produces very pure rutile grade Titanium dioxide pigment. The different grades churned out by KMML under brand name KEMOX has a ready market which asks for more. The commendable work in research by the R&D department has also helped KMML to add more colours to its portfolio.

14

Ownership Pattern: KMML is an integrated titanium dioxide manufacturing public sector undertaking in Kerala, India. Its operations comprise mining, mineral separation, synthetic rutile and pigment-production plants. By 1932, a private entrepreneur established the F. X. Perira and Sons (Travancore) Pvt. Ltd, the forerunner to KMML. Ownership of the company subsequently changed hands three times, after which in 1956 it was taken over by the state government and placed under the control of the industries department. The unit was subsequently converted as a limited company in 1972 by the name of The Kerala Minerals and Metals Ltd. with the objectives of better utilisation of mineral wealth found along the sea coast of Kollam and Alappuzha and also generation of growth and employment in the state in general and the local area in particular. Certification: KMML achieved ISO 9001:2000 certificate by M/S Bureau Virtues Quality International (BVQI) and holes certification of United Kingdom Accreditations Service, Dutch Council for Certification (Holland) and Register Accreditations Board (USA). KMML has won the 1997 National Award for in-house Research and Development effort in industry for technology absorption under the TAAS programme. The Kerala Productivity Council Award for high productivity standard. Council Award for high productivity standard has also been won by KMML. Pollution Control by KMML: KMML has elaborate pollution control system with respect to both water and air pollution. The waste (acidic) from Ilmenite Beneficiation Plant is sent to Effluent Neutralization Plant (ENP). ENP consist of a Primary Neutralization Tank (PNT) and Secondary Neutralization Tank (SNT) where it is treated with caustic soda solution. The totally neutralized slurry from the SNT is pumped to 50000m3 capacity setting
15

pond provided with impervious clay, polythene lining at bottom side where the solids are settled. The day solution from setting pond of 25000m3 capacity where the balance solids are allowed to settle the clean water from the polishing pond meeting all specification stipulated by Pollution Control Board authorities is pumped in Arabian Sea. All gases from Chlorination, Oxidation, Ilmenite Beneficiation Plant and Acid Regeneration Plant are scrubbed water or line or caustic solution to absorb the toxic gases diluted with enough fresh air and only let out to the atmosphere through tall slacks.

Major Consumers: Paint industry contributes a large number of consumers of Tio2. Other largest customers include such industries as paper, plastic, polyester etc. The bulk of the products in KMML are consumed by the industries namely: Asian Paints Berger Paints Shalimar paints Nerolac Paints Sanderson Chemicals Mega Meditex Plastics chemists industries Rajdoot paints Bombay Paints

Product Profile: KMML always maintain high standards of perfection, achieving technical excellences in every phase of production. Catering to strict guidelines, KMML offers a wide range of products for quality conscious customers. Products go into the manufacture of a variety of products
16

used in everyday life. Dress materials, facial creams, tablets, newsprints, wood paints, emulsions, enamels, plastics, tooth paste, rubber products, cosmetics and printing ink all contain titanium dioxide. KMML offers Rutile grade Tio2 as the main product and also offers zircon, leucoxene, titanium tetra chloride as the secondary products. Titanium tetra chloride is extensively used in manufacture of titanium dioxide pigment, titanium sponge or metal. The main products of KMML are: Titanium Dioxide Pigment (Rutile) KEMOX RC 800 KEMOX RC 802 KEMOX RC 808 KEMOX RC 822 KEMOX RC 800 PG KEMOX RC 813 Titanium Tetra Chloride Ilmenite Rutile Leucoxene Zircon Silliminite Monazite Iron oxide bricks

Applications: KEMOX RC 822 from KMML is a multiple application pigment, which is in great demand in the world market. The production of other grades of Titanium Dioxide pigments like RC 800 PG, RC 800, RC 802, RC 813, RC 822 and RC 808 has its own importance in the world scenario. Minerals like Zircon and Monazite are used in the development of Nuclear Technology. The manufacture of Iron oxide bricks from the
17

waste Iron Oxide, which is used for building purpose. The KMML Titanium pigments are reputed for their high degree of gloss, tint retention capacities and ease of dispersion.

The product profile of the KMML and their applications are shown in the figure below:

Sl No 1

Products

Application

Titnium Dioxide Pigment

paints, printing inks, plastics, paper, rubber, textiles, ceramics Titanium dioxide pigment,Titanium sponge, titanium salts Welding electrodes, titanium compounds, titanium dioxide pigment

Titanium Ttra Chloride

Rutile

Ilmenite

Titanium dioxide pigment, titanium chloride

Leucoxene

Welding electrodes, Titanium dioxide pigment

6 7

Zircon siliminate

Nuclear technology High temperature refractory

Iron oxide bricks

As building material

18

At present KMML produces six grades of titanium dioxide pigment under the brand name of KEMOX. The different grades of Tio2 pigments that are produce in the KMML and there uses are given below:Grade KEMOX RC 800 KEMOX RC 802 KEMOX RC 808 Uses Interior decorative and industrial paints and most ink applications General architectural interior an exterior finishes Used for coating with glass to which prevents the spreading of water. This helps the automobile industry to design the vehicle without using any wipers KEMOX RC 813 KEMOX RC 822 For powder coatings and industrial coatings Used for decorative and emulsion paints

Quality Management System KMML achieved ISO 9002 certificate by M/S Bureau Virtues Quality Management (BVQM), Holes certification of United Kingdom Accreditations Service, Dutch Council for certification (Holland) and Register Accreditations Board (USA). KMML has won the 1997 National Award for in-house research and development effort in industry for technology absorption under the TAAS programme. The Kerala Productivity Council award for high productivity standard has also been won by KMML. ISO 9001:2000 (Quality policy) KMML has been certified ISO 9001-2000 in the year 2003 as a recognition of practicing quality.

19

Objectives Continual improvement in the areas of delivery. Encouraging innovation and technology updating. Training and empowering the work force. Better communication, cost reduction Safe and clear space. Caring for requirement of the society. Compliance with documented quality system.

ISO 14001:2004 (Environment policy) KMML has been certified as ISO 14001:2004 in the year 2005 as recognition of protection and safeguarding the environment. Objectives Protecting and safeguarding the environment by strictly complying with the statutory and regulatory requirements. Managing and continually improving process activities and products. Controlling the impact of the products and processes on land, air and water. Preventing the environment from environmental pollution. Reducing health and safety risks. Optimizing the use of resources.

OHSAS 18001:1999 (Occupational health and safety) OHSAS 18000 is an international occupational health and safety management system specification. The manufacturer of synthetic Rutile and Rutile grade TiO2 are committed to protect health and safety of the employees and everybody involved in this activity of the company. Its intention is to help organizations to control occupational health and safety risks.

20

Environmental Quality System (EQS) KMML has formulated a comprehensive, systematic, planned and documented manner of management organization's environmental programs. It comprises of organizational structure, planning and resources for developing, implementing and maintaining policy for environmental protection

Social Accountability According to KMML Wherever there is human touch we will protect it. KMML not only protects and safeguards the human resource in the organization but also care for the person who lives near to the organization.

Pollution Control KMML has elaborate Pollution Control system with respect to both water and air pollution. The waste (acidic) from Ilmenite Beneficiation Plant is sent to Effluent Neutralization Plant (ENP). ENP consist of a Primary Neutralization Tank (PNT) and Secondary Neutralized Tank (SNT) where it is treated with caustic soda solution. The totally neutralization slurry from the SNT is pumped to 50000m3 capacity setting pond provided with impervious clay, polythene lining at bottom side where the solids are settled. The day solution from setting pond of 25000m3 capacity where the balance solids are allowed to settle the clean water from the polishing pond meeting all specification stipulated by Pollution Control board authorities is pumped in Arabian sea.

Corporate Social Responsibility (CSR) According to KMML The world that we share is given to us in trust. Every choice we make regarding the earth, air and water around us should be made with the objective of preserving it for all the generations to come.
21

Some CSR activities of KMML includes: A destination plant ensures that ground water levels are maintained at safe levels and the ecological balance is not affective due to the water requirement of the company. A centralized effluent neutralization plant which ensures that no harmful wastes are let out. Provision of drinking water for surroundings villages has been provided through 52km of pipeline. Regulation medical camps and other programmes for the health maintenance. Financial assistance for schools, clubs and other non charitable bodies for purchasing books, furniture etc.

Awards & Recognitions Global Recognitions: International Gold Medal Award for Quality & Efficiency from UK in 2003. APCJ Award from Asia Pacific Coating Forum for the Best International Marketing Campaign - May 2003. Standing Tall: Award for R&D efforts in Industry FACT MKK Nair Memorial 1992

Productivity Award Energy Conservation Award FACT MKK Nair Memorial

1993 - 1994

1999

Productivity Award

1999 - 2000

22

FACT

MKK

Nair

Memorial

Productivity Award Energy Conservation Award CAPEXIL Award for best export performance Award for best revenue PerformanceGovt. of India (National)

2000 - 2001

2001 2003, 2004 & 2005 2003 & 2004

Infrastructural Facilities: Following are the infrastructural facilities provided by KMML: Hospital facility with one male and one female qualified doctors and pharmacy is also available in all three shifts. Canteen facility with good vegetarian food is provided for all employees. Company will charge rupees 6 per day for three times food from every employees. Canteen is under the control of the company. Purified cool drinking water facility is provided inside the plant. ATM facility of ICICI bank is also provided inside the bank. Adequate toilet facility is also provided

Future Growth And Prospects of KMML KMML is studying the possibility of the productivity of more economic Titanium metal sheets. Recently researchers at R&D department established that Aeronautic industry could use Titanium metal of aluminium alloy coverings. The company is in the process of expansion and the target expected is approximately shown below: A new mineral separation plant of two lakh tones per year Ilmenite. A new synthetic Rutile plant of capacity 1.3 lakh tones per year.
23

A new 100 tons per day oxygen plant. Capacity enhancement of Tio2 pigment plant of 1 lakh tones per year. Raising production to 60,000 tones. Titanium sponge plant. Government of Kerala has cleared KMMLs proposal for the process of Titanium Tetra Chloride project named Titanium Sponge Unit. The sponge thus produced will later on converted to Titanium INGOT (metallic forum). The strategic metal is now widely used in chemical industries, laptop computers, mobile phones and sports goods only a few countries such as Japan, Russia, USA, UK, China and Germany have the technology available with scientific industries for the process of Titanium sponge for its commercial value.

Organization Structure An organizational chart often called organization structure is a diagram that shows the structure of an organization and the relationships and relative ranks of its parts and positions/jobs. An organizational chart of a company usually shows the managers and sub-workers who make up an organization. It also shows the relationships between directors: managing director, chief executive officer of various departments. In many large companies the organization chart can be large and incredibly complicated and is therefore sometimes dissected into smaller charts for each individual department within the organization. KMML believes that a plan without a strategy is like a dream unfulfilled. So they invest some time in studying and creating a business organization structure that will best serve your company. Similarly the organization chart of KMML clearly shows the relationship between the Managing Director, other directors and employees of the organization. Managing Director has the power and authority o control all the activities in the organization. Executive Directors of TP and TSP comes under the MD. Under ED the Joint General Manager of P&A will come. Then DGM is under the JGM and then all the Asst. General Managers
24

and under this the managers of maintenance, electronic and technical are appointed. In ED of TSP also the AGM under DGM and below the managers will be appointed. DGM of Production, Marketing, Fire and Safety and the other departments and also GM of Finance is having equal power. Below the DGM of each department the assistants are appointed. A co-secretary is also appointed under the Head of finance department. Under all the AGM the Plant Managers are appointed in order to carry out the work. And under each Plant Managers the Deputy Plant Managers is there to give support to them. Under the DGM of Fire and Safety Department the Managers, Safety Officer and also a Fireman will come. The Safety Officer has the obligation to give training to all the employees regarding the various safety measures. Below this the peons and workers will come.

25

26

Typical organization structure at Plant/ Technical level

MANAGER

DEPUTY MANAGER

PROCESS/PLANT MANAGER

Asst. PROCESS/PLANT MANAGER

OPERATOR/ Tech. Gr. A/B/C

WORKERS

Typical organization structure in Office section

Manager Deputy Manager Officers Asst.Offiers Staff Sr. Gr. / Gr. I / Gr.II Peons

27

CHAPTER 4: DEPARTMENT ANALYSIS

28

DEPARTMENT ANALYSIS:
As in every public sector KMML also has number of separate departments and their respective executive heads. The functional department of an organization function or activities are categorized into different groups. The application of functional form of department means grouping activities into departments of production, marketing, human resource development and finance. Each department specializes in its own area of production. Functional department in KMML Production department Marketing department Finance department Material department Personnel and Administration department Fire and Safety department Data processing department Technical department Project department Maintenance department

Research and Development department

29

1. Production Department
The production department plays a vital role in KMML. It is equipped with latest state of art technologies. It strives to accomplish a high standard by achieving technical excellence in every phase of production. The plant works 24hrs a day with three shifts. Occasionally the plant is closed for maintenance work. The production department comprises of two divisions,

namely Production Planning division and Production division. Functions of production department: In KMML production is the functional area responsible for turning inputs into finished outputs through a series production process. The main functions of production department are: To set standards and targets for each section of production process. To monitor the quality and quantity of products coming off from a production line. To maintain a production schedule, so that other departments could know about quantity of product produced in a specific period. To maintain a proper coordination between other departments in KMML. Objectives of production departments To maximizes the productive capacity of the firm. To extent the present production of the products to various other products produced by the competing firms.

To maintain a standardization.

30

Organization chart of Production Department

DGM (Production) AGM (Utility) Manager (Utility) Plant Manager 400\500 Deputy PM Process Manager Assistant Process Engineer Operator Workers Plant Manager 300 Deputy PM Process Manager Assistant Process Engineer Operator Workers Plant Manager 100/200 Deputy PM Process Manager Assistant Process Engineer Operator Workers AGM (Production) AGM (PP/PB/IC) Plant Manager IBP Deputy PM Process Manager Assistant PC Operator Workers Plant Manager ARP Deputy PM Process Manager Assistant PC Operator Workers

The Manufacturing Plant at KMML comprises the Mineral Separation (MS) Unit and the Titanium dioxide Pigment (TP) Unit. The MS Unit is where the separation of Ilmenite, Rutile, Leucoxene, Monazite, Silliminite etc from the beach sands takes place, through the various stages in the Wet Concentration Plant, Dry Plant, Dry Mill, Rutile and Zircon Recovery Plants. The MS Unit employs Gravitational, Magnetic, and High tension electrostatic techniques for separation of minerals from the sand.

KMML maintains a high standard of perfection by achieving technical excellence in every phase of production. Catering to strict guidelines, KMML
31

provides a wide range of products to quality conscious customers. This department undertakes activities and decisions regarding the production work. Deputy General Manager (P&M) controls the activities of this department. The Kerala Minerals And Metals Ltd has two units viz, Titanium Dioxide Pigment Unit and Mineral Separation Unit. The organizational structure consists of a Managing Director assisted by two General Managers. There are Joint General Managers, Deputy General Managers, Asst. General Managers, and Managers in various departments/sections of the company Production Plants: The manufacturing process is divided into five units such as: 1. 2. 3. 4. 5. 6. Ilmenite Beneficiation Plant (IBP) Acid Regeneration Plant (ARP) Chlorination plant (Units 200) Oxidation plant (Unit 300/O2) Pigment finishing plant (Unit 400) Utilities

32

Skills of Employees and Workers: The skills or qualification needed to the employees in the production department are IT and other Technical skills. The skills needed for ordinary workers in the production and maintenance department is minimum 10th standard. The workers must be hard working and must be careful in each and every step in their working as they are dealing with chemicals daily. Staff: The total staffs in the production and maintenance departments are 193. If there is a sudden break down of the plant, which leads to several days, or if the production rate is not within the target rate for several days the staffs in planning division makes a quick assessment of the situation. Manufacturing: The sands are washed onto the beach by the waves every day. They are called beach washing. These sands are the raw materials naturally harvested by KMML for the manufacture of the finest grades of Titanium Dioxide pigment and other products. KMML is India's only RUTILE GRADE

TITANIUM DIOXIDE MANUFACTURING FACILITY (through Chloride Route). The Manufacturing Plant at KMML comprises the Mineral Separation Unit and the TP Unit (Ilmenite Beneficiation Plant, Acid Regeneration Plant, Pigment Production Plant, Oxygen Plant & Utility Section).

The raw Ilmenite obtained from the Mineral Separation Unit is taken to the manufacturing facility for further processing. Titanium Dioxide is

manufactured here using the chloride route. The chloride route is better than the sulphate route as highest levels of purity can be achieved with this. System Used: 1) Ilmenite Beneficiation Plant: The Ilmenite Beneficiation Plant is designed and installed based on the BCA Cyclic Process Technology supplied by M/s. Benilite Corporation of America.

33

It is used for increasing the volume of titanium dioxide thereby removing the impurity like ferric oxide. Process Outline: The raw Ilmenite (RI) containing 58-60% Titanium Dioxide and 40 % ferric oxide which is an impurity. For pigment production this impurity has to be removed. So the raw material Ilmenite along with petroleum coke is heated at a temperature of 8500 c for about 3 hours. This will reduce ferric oxide to ferrous oxide. Now the reduced Ilmenite is cooled and it is sent to the digester where it is launched with dilute HCl. The leached Ilmenite is washed and filtered and then calcimined to get beneficiated Ilmenite. The beneficiated Ilmenite now contains about 90% to 95% Tio2 content.

34

Production Process chart

Beach sand Mineral Separation Unit

Ilmenite 60%TiO2

Rutile 95%TiO2

Leucoxene 70-72%

Silliminite 65%

Zircon 65% ZrO2

Monazite 57%Reo 8% ThO2

TiO2 Al2O3 TiO2 Pigment Unit

Ilmenite Beneficiation plant

Spent acid

Acid Regeneration Plant

Synethic Rutile 92% Tio2 Hydrochloric acid Chlorination Plant Brick Making Plants Titanium Tetra Chloride 99.5% TiCl4 Oxidation Plant Sales TiCl4 Oxygen Nitrogen Raw TiO2 pigment Building Bricks Iron oxide

Air Separating Plant KEMOX-RC 800 KEMOX-RC 800PG

Finished pigment plant

Rutile TiO2 pigment grade

KEMOX-RC 802 KEMOX-RC 813 KEMOX-RC 822 KEMOX-RC 808

35

2) Acid Regeneration plant: The spent leach liquor is transferred to the Acid Regeneration Plant where it is heated with burning coil in a furnace. The spent liquor decomposes to form the metallic oxide, iron oxide and vapours of HCl acid. The HCl acid vapour is then cooled and add little concentrated HCl acid for getting dilute HCl add with concentration of about 18-20%. Now this acid perfectly suits the requirements in the IB plant and it recycled back to IB plant. 3) Chlorination Unit (200): Beneficiated Ilmenite from plants is chlorinated to produce Titanium tetra chloride (Ticl4). Chlorine reads Tio2 and other metallic oxide impurities in the beneficiated Ilmenite. This helps in removing impurity metals. The Ticl4 liquid is then stored. It is subject to distillation process for further purification so as to obtain purebTicl4. 4) Oxidation Unit (300): Now the liquid Tetra Chloride is preheated in tickle where it is vaporized and oxidized with the atmospheric oxygen to produce Tio2. Then the Tio2 is formed into slurry with water and is stored in the storage tanks for surface treatment in the finishing plant. The chlorine liberated due to this is recycled back to the chlorination plant. But the problem in this unit that, both the chlorination plant and oxidation plant has to work simultaneously. This is because they dont have facility to store the chlorine liberated in the oxidation plant. 5) Surfaces treatment and pigment finishing plant (400) The Tio2 slurry stored in the tanks are passed to treatment and finishing plant. In the treatment section Tio2 pigment in surface is treated with chemicals like sodium aluminates and sodium silicates. The slurry is then filtered and washed to remove salts. The Tio2 left after will be in the shape of a cake and is feedback to the dryer and finally will achieve the optimum particle size of .02 microns. Now it is ready for sale and is packed in paper bags of 25 kg capacity

36

Production and sales of Titanium Dioxide From 2005-2010

40000 35000 30000 25000 20000 15000 10000 5000 0 2005-06 2006-07 2007-08 2008-09 2009-10 production sales

37

2. Marketing Department

Marketing is a social and managerial process by which individuals and

groups obtain what they need and want through creating and exchanging products and value with others ..Philip Kotler KMML is the worlds first fully integrated Titanium Dioxide plant. The company has indulged in the manufacturing of world class Titanium Dioxide. It has been ranked among the top ten companies in the world for producing its own product which consist of mining, mineral processing and manufacturing. KMML is a public limited company that stands as a leader in production of TiO2. KMML has a large number of customers all over India and outside. The marketing department is engaged in selling of the companys product. The marketing section keeps detailed report about customers product, product group control, dispatch and payment.

Organizational chart of Marketing Department

Deputy General Manager (Marketing)

Manager (Marketing)

Deputy Manager (Marketing)

Assistant Administrative Officer (Marketing)

Officer (Marketing)

Steno cum Typist

Assistant

Typist

Peon

Peon

38

Objectives One of the objectives of KMML is providing satisfaction to the customers. So they are concentrating to produce quality product. Every year they set a target growth rate for achieving this target they give prime importance to the quality rather than profit. Functions The main functions of the marketing department can be classified into Functions of exchanging Functions of physical supply Marketing facilitating function a. Functions of exchanging The function of exchange carried out by the marketing department is subdivided into three: Buying and assembling Packaging Selling

Buying and assembling The raw Ilmenite which is required for the production is either collected from mineral separation plant or brought from MSU. The raw materials like chemicals, petroleum coke, burning oil etc are brought either from the vendors list or selected vendors. The marketing department carries out the selection of buyer and making arrangement for procuring the items. The marketing department also arranges the machines required in the plants. Packaging The marketing department gives special directions regarding the packing of the TiO2 pigment. They receive directions from the customers and then this passed on to the packing sections. Today all pigment grades except XEMOX RC 813 is packed in 25kgs net weight air laminated multi paper bags.
39

Selling KMML provides the facilities for the customer to make direct purchase from the company. More they appoints stockiest for distributing the pigments to the small customers. At present they have appointed 28 stockiest all over India. b. Function of physical supply The marketing departments function related to the physical supply can be explained as follows:Dispatching Once the order from the customers as well as from the stockiest were the marketing department arranges the execution of orders by way of preparing dispatch. The mode of payment for purchase made by the consumer has to be advance payment in the form of demand draft or telegraphic transfer which are payable at any schedule banks in Kollam Preparation of document and register needed for dispatching the goods For this, the marketing department has to prepare the following document: Order register:- Particulars of the received order are entered in register called the order register; contain the name of the person or company who has placed the order. Delivery note: - This note is prepared on receiving the order. A copy is send to research & development department for ensuring quality as per the specification made by the customer, second copy is send to finance department, third copy for the security officer for preparing gate pass and the last copy is key\t with the marketing department for the future references. Delivery Chelan:- It includes details about the items that are to be delivered, name of the vehicle used for the transportation, vehicle number, gate pass, details of dispatch, etc Invoice preparation: - It is prepared in the finance department and submitted to the marketing department. It shows the name of the customers, date, grade of goods, quantity purchased destination, truck number, etc.
40

Gate pass: - It is prepared by the dispatch section. The company gate pass is submitted before the security officer to take goods out of the factory premises. c. Function of physical supply The marketing department also performs the facilitating functions like, Financing For helping the company to maintain a proper working capital management, the marketing department insists on advance payment from the customers. These help the company to reduce the debt. Rick bearing It takes all top possible methods to avoid the chances of goods being returned by the customers and also takes special care for the protecting the goods from being damages on storing in the go down.

Marketing Mix of KMML:

PRODUCT The major products of KMML is Titanium Dioxide TiO2 (Rutile) pigment, which is extensively, used as the main raw material by several industries such as paint, plastic, rubber, printing, inks etc. Titanium Tetra Chloride (synonymTickle) is produced as an intermediary product in the production of rutile grade titanium dioxide pigment. Titanium Tetra Chloride is extensively used in the manufacture of Titanium dioxide pigment, Titanium sponge or metal.At present KMML produce six grades of Titanium Dioxide and they are:-Kemox RC 800, Kemox RC-800 PG, Kemox Rc-822, Kemox RC 813, Kemox RC813 etc PRICE Based on the variation in the market, the price of TiO2 is fixed by KMML. The price is fixes by Chairman and Finance Secretary of the Government of Kerala. The price is periodically revised due to market fluctuation.

41

PROMOTION KMML is a sole manufacture of Rutile grade titanium in India, there is no need for them for large promotional activities. More over they annually conduct stockiest meet for maintaining good relation with them and also the company take this opportunity for introducing new grades of titanium pigment. KMML make advertisements in trade journals and industrial news magazines published by the Paint Manufactures association and ink producers association etc. KMML is also associated with Paint India the leading publication of the paint industry and Mineral Market Report which provides valuable information of Tio2 at national and international level. PLACE OF DISTRIBUTION Marketing channel decisions are among the most important decision that management faces. A companys channel decisions directly affect every other marketing decision. Direct Supply- By this policy KMML have estimated the middlemen and it is easily adapted to any circumstances. Supply through Stockiest- Supplies to small sectors are done through stockiest appointed by the company in all major cities

Competition in the global market can be faced only by the fast delivery of standard products, services. Traditional marketing equipments should have to be replaced by the innovative marketing strategies such as product diversification, monopolistic pricing etc. Any product movement in the market of KMML will depend upon the marketing efforts undertaken by the company.

42

3. Finance Department Finance department is the core part of any organization. It deals with both the acquisition as well as allocation of funds. The finance department in an organization is responsible for maintaining fair and just accounting, working capital management, long term funding decision making, costing etc. The finance department is headed by Deputy General Manager (finance) who is assisted by a Manager, Deputy Manager, accounts officer and other officers KMML has two independent production units & for each unit the company is maintaining separate books of accounts. The units are called as Titanium pigment (TPU) and Mineral Separation unit (MSU). Titanium Pigment Unit is a chemical factory, under the Factories Act 1948, whereas Mineral Separation Plant is a mining unit under the Mining Act.

43

Organisation chart of Finance Department

Managing Director

General Manager (Finance)

Manager (Internal Audit)

Manager (Finance)

Internal Audit Assistant

Deputy Manager

Account Officer CASH

Account Officer SALARY

Account Officer TAX

Account Officer BUDGET

Account Officer DIRECT BILLS

Account Officer Other BILLS & SALES TAX

Assistant AO

Assistant AO

Assistant AO

Assistant AO

Assistant AO

Assistant AO

Accountant

Accountant

Accountant

Accountant

Accountant

Accountant

Functions of finance department in KMML To maintain clear and perfect accounting system Preparation of profit and loss account, Balance statement, cash flow statement, fund flow statement etc. Working Capital Management

44

Carrying activities pertaining to the long term and short term requirement like closing purchase, maintaining the accounts of the contractors, income tax deductions, salary and disbursement etc.

Dealing with the financial institutions with matters regarding to salary disbursement, credit arrangements, collecting payments from customers etc. Objectives of finance department

To prepare the budget estimation, revised estimation and supplementary grants. To control all matters relating banking institution and banks. To find out the various sources of fund.

The finance department consists of two sections: An internal auditing system (or carrying out auditing functions internally and also for maintaining internal audited records. An account section for preparing Profit and Loss accounts, Balance sheet etc. Accounting Policy of KMML Convention The final statement is prepared under the historical cost convention in accordance with applicable accounting standard that was relevant to presentational requirement of the Companies Act 1956. Fixed Assets Fixed assets are stated at cost of acquisition and additional if any, less accumulated depreciation, is provided at rates and methods prescribed in the schedule XIV of the Companies Act on straight line method in respect of plant and machinery and railway sliding belonging to TiO2 pigment unit and written down value method in respect of all the asset of the company. The depreciation is calculated on the basis of Companies Act and for income tax audit it is added to the profit and recalculated as per the audit rules.

45

Excise duty Excise duty on manufactured is accounted for as and when goods. Are dispatched is accordingly no provisions is made in respect of duty due on goods manufactured, but not dispatched nor included in valuation of stock.

Gratuity Gratuity liability and leave is accounted on the basis of actuarial valuation.

Inventory System Work-in-progress is valued at the cost and stock of raw materials, chemicals, fuel and stores are valued at weighted average cost on month Adjustment per training to early years Adjustment arising out of errors or omission in the financial statement of earlier years are prior period item, if the amount involves is Rs.100000/- or more in each case. Functions of accounting section KMML maintains a clear and perfect accounting system. The main activity of the Finance Department is Working Capital Management. Preparation of Fund Statement, Cash Flow Statement, Balance Sheet, Profit and Loss Account etc are also the activities of Financial Department. Secretarial work relating to Board comes under the review of the Finance Department. Most of the activities carried out by the Finance Department are pertaining to long term and short term requirements of the operation, closing purchase bill, maintaining the account of contractors, subcontractors, income tax deduction, salary discrepancy, dealing with the financial institutions with imports and exports are also the functions of the Financial Department. Purchase Are Recorded And Analyzed The Finance Department of the company keeps the accounts of purchase of spare parts, chemicals etc and accounting entries are made in the books of accounts of the company on day to day basis, on the basis of bills and supporting vouchers of each item. Each voucher is essentially numbered to avoid discrepancy. The company makes only miscellaneous purchase, as the

46

main raw material is mineral sand. The department analyses the details of purchases afterwards. Salary Section and Pay Division The main function of the department is preparation and disbursement of salary of officers, members of office staff and workers. The department keeps salary register pertaining to each of the above sections, which facilitates charges in salary due to granting of annual increments and deduction due from the salary. The disbursing of salary is crediting the amount to the respective bank account of the employee. The department is sending a detailed list of salaries; they have arranged an ATM counter of ICICI Bank in the company compound. Certain employees are paid by cheque. The department is maintaining sub ledgers for deductions made in the salary such as PF, Insurance Premium Advance, and Income Tax etc. Another important function is computation of income Tax. It is deductions and prompts remittance to IT Department. Sales and Revenue Accounting The department is calculating and paying sales tax and central excise duty to the concerned Government every year. The Government is earning a total income of Rs.44 crores and Rs.14 crores by way of excise duty and sales tax duty from the company. Cash and Bank Transactions The department does all the matters relating to the day-to-day cash transactions. They receive and make payment for purchase and sales. The company is allowed to collect cash up to the limit of Rs.20000/- is carried out by cheque or DD as per direction of the Tax Authority. Major Banks of the Company o o o o o o ICICI SBI SBT Standard Chartered Bank Canara Bank Central Bank of India.
47

Costing Annual budget and cost sheet is prepared at the outset of every year

and on the basis of the department fixes the floor price of each product of the company. Calculation of Depreciation The department calculates the depreciation. Depreciation is provided on straight-line method in the case of plant and machinery of Titanium Pigment Unit and written down value method in case of other assets of the company. Auditing Auditors are appointed by the Government for a period of one Year. There exist an external audit and internal audit. Internal Audit:- These are part of the organization. There is an internal auditing sector. They are in the charge of periodical audit. External Audit:They are as follows:o o o o o o Statutory Audit Account General Audit Inspection Audit Sales Tax Audit Income Tax Audit Cost Audit

Capital structure Total capital invested in pigment plant construction project is about 105 crores. The government of Kerala has wholly contributed a paid up capital of about 32 crores and the remaining amount was secured from the financial institution. The capital structure maintained by the company at that point of time is shown.

48

Investors Government of Kerala IDBI IFCI SBI & SBT LIC Internal loans Total

Amount invested (in crores) 32 31 11 9 3 19 105

Later in 1993, company repaid all outstanding loans & equity ownership is retained by the government.

Profits made by the company are used to fund other PSUs on government order. Company has paid profit in terms of loans to the following:

The company has advanced loans to other PSUs/ Cooperative Societies in earlier years amounting to Rs.2401.50 lakhs based on order of Gov. of Kerala. All these amounts have been declared interest free by the government wide G.O.

M/S Travancore Sugars & Chemicals Ltd. who had availed Rs.9 lakh loan had

refunded the full amount in 2 installments. M/S Sitaram Textiles.

Company has paid Rs.1000lakhs to M/S Travancore Titanium Products Ltd (TTPL) as directed by the Government of Kerala for the implementation of Pollution Abatement Projects of TTPL (@ 7.5%per annum)

Company has paid Rs.300 lakhs to M/S United Electrical Industries Ltd as directed by the Gov. subjected to conditions that Gov. of Kerala will refund the amount.

The Gov. of Kerala has approved the implementation of certain Green Field Projects at various places and also the expansion of certain existing PUUs. As

49

per Gov. orders KMML has to invest Rs600 lakhs for mobilizing funds for the implementation of the above projects.

During the year the company has invested Rs.500 lakhs in Equity shares of Kannur International Airport Ltd (KIAL).

Company has paid Rs.460.37 lakhs to M/S Steel Complex Limited for clearing their arrear power charges to KSEB as per government orders. The decrease in profit during the year is mainly due to the amount provided towards arrears (Rs.3835.34 lakhs) of wage revision of employees and salary revision of officers due from the period of 01-01-3009 to 01-012010 respectively. Further an amount of Rs.1507.21 lakhs is recognized in the P&L A/c during the year towards gratuity as per actuarial valuation mainly on account of enhancement of gratuity limit from Rs.3.5 lakhs to Rs.10 lakhs (previous year Rs.248.74 lakhs).

50

4.

Material Department

All functions relating to purchase and storage of material for the company is carried out by this department. This department is headed by the Deputy General Manager (material) and he is assisted by manager (purchase & stores), purchase officers, sales officers and other staffs. Purchase is one such department, if functioning properly can bring about profit to the organization by carefully monitoring its purchase activity, i.e. maintenance of well developed vendor list and through inventory control. There is around 27000 items of raw materials in KMML. The functions of material department can be grouped into three: Purchase Stores Inventory control

The functions of materials department Materials Management generally includes purchasing, procurement, distribution, warehousing, of products and materials in an organization. In KMML, Materials department deals with financial parameters and the needs of your internal customers. The objectives of materials management: To reduce material related cost, reduce cost of production and as a consequence, it enables higher earnings and profitability.

To have an efficient material management a company must establish clear guidelines and strategies regarding purchasing of material, storage and minimization of inventories

51

Organization chart of Materials Department

DGM (materials) Manager (material)

Purchase

Stores

Purchase officer (import) Assistant purchase officer

Purchase officer (indigenous) Assistant purchase officer

Stores officer

Stores officer (Inventory)

Assistant stores officer

Assistant stores officer (Inventory)

Staff

Staff

Charge man Staff

Staff

52

(a) Purchase Department:

Purchasing Department Structure

Assistant GM (Materials)- HOD Manager (purchase)

Deputy Manager

Purchase officer

APO (indigenous)

APO (import)

Clerks Peons

The purchase department is concerned with the procurement of the required raw materials. The purchase can be broadly classified as: Purchase made in India, i.e. indigenous purchase. Purchase made from foreign countries. Cash purchase, i.e., up to Rs2000/- with the permission of the unit head. Local purchase, i.e., up to Rs25000/- this arises in case of emergencies and purchase can be made from approved.

53

Terms of payment Direct payment Through bank Advanced payment Letter of credit

Purchase Procedure Purchase of materials is an important function of an industry. The procedure of purchase is as follows: Purchase request The department or officer in need of material has to place his request in a purchase requisition form. In case of raw materials, it is done by the inventory control section. The purchase requisition is prepared in the triplicate. The original copy of it is kept by storekeeper and duplicate is for the finance and the other is to be kept by the person who makes the request. The purchase request must be approved by the concerned department head. Stock verification Once purchase request is received the storekeeper checks whether the materials required is required is available though the stores. If the materials are out of stock, the storekeeper informs the purchase section through an indent form. Selection of suppliers The next function is to select the supplier to whom the order is to be send. The company places a public tender notice for the procurement of raw materials. On the basis of it the vendor submits the tender within 15 days. Tenders have two parts- Technical bid and commercial bid The tender committee opens the tender and verifies the technical bid and if they are satisfied with the technical bid, i.e., with the quality of material, they opens the commercial bid, the tender committee then prepares a comparative statement and accept the lower quoted quotation. Usually, a
54

contract for one year is made for the supply of raw materials. To avoid risk of the irregularities of the supply, the company appoints more than one vender. In case of spare parts, the enquiry is send to the vendors list in the company and the apt vender is selected on the basis of tenders. The vendor list contains the name and address of vendors with specific items. Purchase order After deciding the supplier, the purchase officer of KMML has to place a purchase order. The purchase order is a written authorization to the supplier to supply the particular materials. The materials are to be supplied according to the terms and conditions of the of the purchase order. In KMML five copies of purchase order is prepared. o The original is send to the supplier. o Second copy is send to the materials receiving section. o The third copy is send to the person who has placed the purchase requisition. o The fourth copy is send to the Finance department for future reference for payment. o The last copy is kept in the department itself. Inspection of goods and quotation reception On receiving the materials from the vendor, a visual inspection is conduced. If there is any discrepancy between the party advice copy and received copy, a discrepancy is prepared and if there is any damage, a damage report is prepared. Item below Rs500/- call for single quotation, items above Rs500/- and below Rs50000/- are call for minimum three quotations from important manufacturer, dealers and stockiest. Items above Rs50000/- call open tenders. Sanctioning authority

Purchase order cost authority Below Rs.50,000 Up to 5 lakhs DGM (maintenance) approves DM

55

5-10 lakhs 10-50 lakhs Above 50 lakhs

Head of indenting department MD (Tender committee) Board of Directors

Approval Price Order to supplier Materials receipt Inspection

Quotation

Purchase process

Enquiry

Intend

Issue to department

(b) Stores department Store department plays a prominent role in a company. Many a time improper store activities lead to huge losses. The store department of the KMML is one which runs efficiently and effectively. It incorporates, many management techniques like inventory control system, ABC classification of items, store reviewing based on moving and non-moving items and store location design. The activities carried out by a typical store department are follows Receiving materials Inspection of materials Proper classification and codification of the material Materials handling

56

Storage and preservation of the material Issue and dispatch Stock record keeping stock verification report preparations Stock accounting

Stores departmental structure: Stores departmental chart

AGM

Manager (Stores) Deputy Manager Stores Officer

Assistant officer (raw material)

Assistant officer (Finished pigment)

Assistant officer (Equipment & spares)

Assistant officer (inventory)

Charge man

Stores Verification

Assistant Charge man Workers

Officer Assistant Store Verification Officer

Casual Workers

57

The store department is placed under the material department. The Assistant General Manager (stores) is the head of this department. The stores officer looks after all the activities related to this department. Under him there are three assistant stores officers- one for receiving materials and issuing materials, one for classifying and arranging store items (store keeping) and one for inventory control material. Storage functions Various documents are prepared by the store section for the proper functioning of the department. The documents maintained are as follows: Stores inward book:On receiving any materials to the store, it is entered in a document called Store Inward Book (SIB) Inspection of goods:On receiving any materials and preparation of SIB inspection request is send to the concerned technical officer for technical evaluation and reports are prepared on this basis. Store received note: After the preparation of SIB and inspection of goods or materials, Store Received Note (SRN) is prepared. This is the document showing that the, materials received is accepted and payment can be made for it. The SRN is sent to the Finance department for payment. Four copies of SRN are maintained in KMML. Usually the company gets a credit facility for 45 days. Materials issue note: Any material is issued from the store only after receiving a material requisition or Material Issue Note (MIN). MIN contains all the details regarding the material as well as the indenter. Stock transfer note: For transfer of materials between store or section or contractors, for transfer of materials between store and section prepared, it contains details such as material code, cost centre, material description, Unit and quality. It
58

should be mentioned that material description, unit and quality. It should be mentioned that from which section and to which section is the transfer-taking place. Material return note: Some times materials issued from the store may be returned. In that case Material Return Note (MRN) is prepared. It contains details such as the name of department from which the material is returned, value, quality, code, unit, present balance and reason for return. Bin card Bin card is a document attached to bin and it contains the quantities details of the materials received, issued and closing balance. In addition to this, it indicates information regarding different stock levels like minimum level, maximum level, reorder level, etc coded number and name of materials. Inventory control section An appropriate inventory management is required to provide and preserve good customer service. A proper inventory management facilitates a smooth flow of goods through the production process. It also helps to protect against the hesitation of demand and supply and also performing the various production operations economically and autonomously. Materials purchased for a month examined and an issue price is fixed for the month. According to KMML they follow a weighted average method. Inventory control techniques ABC analysis VED analysis FSN analysis

59

5. Personnel and Administration Department

Human resource is one of the most valuable resources as far as a company is concerned. The management of man is very important and challenging job. The proper utilization of this resource will indicate whether a company is successful or not. The story of KMML lies in the personnel and administrative departments ability to handle the human resource. Personnel Department is concerned with the peoples dimension in organization. The sincerity and dedication of the employees in KMML is a major success factor. With a full-fledged Human Resource department, regular training and refresher courses are part of the company life. Apart from skill betterment, this course inculcates quality consciousness, safety awareness and contributes to personality development. There are around 1121 employees in the company. Join General Manager (Personnel and Administration) is the head of the department. Organization chart of Personnel and Administration Department

MD

ED

JGM (P&A)

HOD-DGM (P&A)

M (P&A)

DM (P&A)

DM (Legal)

PO

SO

AO Canteen

Medical superint endent

M (Welfare)

APO

60

Functions The major functions of personnel department are as follows: Man power planning. Recruitment and selection. Training & development. Promotion & transfer Retirement and superannuation Grievance handling. Labour Welfare Activities. Disciplinary proceedings.

MAN POWER PLANNING It is one the most important activities carried out by the P&A department. The primary objective is to ensure the availability of the required skill and avoid/minimize redundancies. To achieve this objective, the management forecast man power needs for the job requirement and explores various sources of manpower supply. Earlier the man power requirement plan in KMML was established based on the work carried out by the Engineering Consultancy (India) Ltd. The company has now decided to preview manpower requirements and entrusted Kerala State Productivity Council to undertake the work-study and job evaluation so as to enable the company to arrive the required manpower in future RECRUITMENT AND SELECTION KMML depends on Technical Employment exchange, district

employment exchange, and notification in company notice board and PSC for recruitment. Direct recruitment is also possible. For this, KMML gives advertisement through Malayalam and English newspapers published from Kerala and other states of south India. Employees are classified into various levels: Senior executives Middle executives
61

Junior level Workmen

SELECTION Various tools and techniques are adopted by the firm for the selection of candidates for various categories of post. Application blanks are employed for extracting the detailed bio-data of candidates. The company calls the eligible candidates for interview. Practical and written test are conducted for selection to technical post. For the post of clerical staff, written test and interview are conducted. For direct recruitment, selection tests are conducted by Kerala State Productivity Council, LBS and CUSAT. Final selection is made on the basis of performance in the interview conducted by a panel consisting of BOD, MD, a government representative and a subject expert. It is compulsory that for all vacancies there must be medical examination to check the physical fitness of candidates.

TRAINING AND DEVELOPMENT KMML gives a lot of importance for its human resources. The company believes that the success depends upon providing necessary training to the employees. Training is provided to each and every employee in the organization. The full responsibility of the training and development at KMML rests on the shoulder of Personnel and Administration Department. The training requirements of the employees are designed under the guidelines of the ISO. KMML seeks training needs identification in the specified form from all functional departments responsible to provide such identification on annual basis before 15 March every year for preparation of annual training plan. In case a training need for an individual crop up suddenly, the concerned department head prepares the training needs identification form and forward it

62

to administrative officer who plans for the training by taking into account factors such as:. Training already acquired. New skills to be imparted. Qualification required. Motivation or communication required.

TYPES OF TRAINING Internal training External training Apprenticeship training

PERFORMANCE APPRAISAL SYSTEM Performance is evaluated by an annual appraisal system. It is the traditional rating system. Rating is done against 5 point scale. Job evaluation involves 3 parts for workmen: Job knowledge Effectiveness Personal attributes

The personnel appraisal forms in respect of employees in various sections are being separately sent by Human Resource development department to respective head of the department for getting the report completed and forward the same to the personnel manager with remarks of assessing the reviewing officers. Trade Unions in KMML: There are four trade unions in KMML 1)Titanium complex employees union (RSP(B)) 2)Titanium complex employees congress (INTUC) 3)KMML Titanium employees union(CITU) 4)KMML Employees union(STU Muslim League)

WORKMEN CLASSIFICATION:
63

1. Permanent Employees:-There are about 253 officers and 858 workers working in the Tio2 pigment plant as permanent employees.

2. Employees Engaged On Contract Basis:-These employees work on contract for a limited period of time say one year or six months on specific terms and condition fixed by the company. They have no preference for future employment in the company. There are around 750 such workers.

3. Temporary or seasonal worker:-These workers are employed when the work load is more on certain season due to the increase in demand; more workforces are needed to meet the production. In such cases temporary workers are engaged. The services of such employees are dispensed with as and when the need is satisfied.

4. Casual labour:-Casual labourers are employed from people who lost their land due to acquisition by KMML; they are engaged first as casual workers and then absorbed as permanent employee when vacancy arises. There 10 casual workers at present in KMML.

5. Apprentices:-Apprentices work for a period of one year as part of their training programmed as per Apprenticeship Act.

WORKING HOURS The daily working of the company is on shift basis. There are 3 shifts for plant and general shift for administration. The timing is as follow: A Shift-6 am to 2 pm. B Shift-2 Pm to 10 pm. C Shift-10 Pm to 6 pm. General-9 am to 5 pm.

64

6. Fire and Safety Department

KMML has an effective safety department, which manage the process of giving security to employees by providing training & giving license to employee and mechanist. The department is headed by the Assistant General Manager (FRS). The safety department is supported by one safety officer, one safety inspector and three technical officers where as the fire department is assisted by a fire officer, leading fireman, fireman and the fire tender drivers. The safety department is given the authority to step any work in case safety particles are not followed during the execution of the job. The safety department carries out the following activities: Routine plant inspection Plant safety inspection Issue of safety work permits Coordination and organizing safety committee meetings. Giving safety education and training Organizing safety promotional activities. Preparing and updating safety manuals Coordination safety auditing / surveys Inspection, cleaning and maintenance of breathing apparatus Functions of Fire and safety department Assist and advise the management: The main function of the department is to assist and advise the management in the fulfilment of its obligations with respect to various health, safety and environment factors. It also deals with matters such as preventive of accidents, maintaining a safe working environment etc. Accident analysis: The safety department maintains yearly accident reports. The accident analysis is carried out as follows:

65

o o o o o

Agency wise analysis Body part injured analysis Frequency rate of the accident analysis Severity rate analysis Department analysis

Mock drill: In order to handle the immediate situation an emergency preparation is very much essential. They train the employees by creating artificial accident and help the employees to a high security system. In case any accident occurs the employees are equipped enough to overcome the eventualities. Statutory approvals/ license/ records: Required statutory approvals and license are obtained by the safety department from time to time. Plant inspection: Plant inspection is one of the techniques of finding hazardous and ensures safety. The safety inspector and the Assistant Plant Engineer carry out routine safety inspection every day. Detailed Safety Inspection of the LPG and Chlorine area are carried out by the Safety Inspection in every alternate using a check list. The inspection list is sent to the concerned department and does the further follow up. Accident reporting and investigation: The accident reporting system is well established. The reporting system is as follows: o Accidents are reported to the dispensary by the supervisors of the injured person through first accident report from A1. o Accidents are reported to the management by the supervisors and section head through the detailed accident report form. o In case of reportable accident as per the Factories Act, the factory manager sends the report to the statutory authorities in the prescribed form.
66

All reportable accidents are investigated by the concerned supervisors,. Selected accidents are investigated by the safety department. In case of serious accidents, the management appoints a committee or a senior level person to investigate the accident. The investigation reports are forwarded to the concerned section / department heads of the safety department and personnel department for corrective action. Safety promotion activities: Various safety promotional activities are as follows: Employees are encouraged to participate in state or national level competition. Every safety essays, slogans and quiz competition are organized. Inter department competition on posters, housekeeping, personal protective equipments wearing and lowest accident rate are organized every year for process plant and to workshop and should be given awarded for the employees or teams. Safety committee In KMML there is well established central safety committee having equal number of representatives from management and workers. There are eight member from the management side and eight member from the workers and eight members from the trade union also. The committee meets compulsory at least ones in three months. The minutes and agenda of the meeting were prepared and circulated. Explosive and petroleum license KMML has got the license from the Government bodies to store and handle the major explosive and petroleum products. Job safety analysis Analysis of job and adopting safety measure is another peculiarity of safety measures.

67

Investigation of occupational diseases Investigation of occupational disease by periodical health check-up of the employees is done correctly. They are providing major treatment in well equipped hospitals.

Health and hygiene There should be pre-employment and periodical health check-up of the employees. There is an occupational health centre in this factory. In general shift the service of qualified medical officer is available. Objectives of fire and safety department: To ensure the safety of the premises. To provide a checklist of procedures for responding to and reporting an emergency. To give awareness among the employees and employers about the safety measures within the firm.

Organization chart of Fire and Safety Department

JGM (TS)

DGM (fire & safety)

AGM (fire & safety)

Fire officer

Safety officer

Fire fighter

Safety inspection

68

7. Maintenance Department
Maintenance plays an important role in smooth functioning of an organization. Maintenance department mainly depends on the nature of the organization. The production department of KMML comprises of number of complex process and also carry out the operations of highly sensitive reactors. Breakdown of any critical machinery may leads to the shutdown of the entire production process. The maintenance department can be categorized into 4 sections: Civil. Mechanical. Electrical. Instrumentation.

The main functions of the maintenance department are: To carry out the maintenance works in the plant. To carryout preventive measure to avoid breakdown of machines. The vital function is to ensure a safe workplace and to keep the various utilities on. To install new equipment, design, modify and fabricate a wide variety of manufacturing and processing equipments. Objectives of maintenance department: Optimize the use of equipments through effective maintenance management methods. Provide accurate data for maintenance and construction programs. Systematically identify maintenance needs and deficiencies. Monitor and document accomplishments. The maintenance department is headed by the Joint General Manager. He is assisted by an Assistant General Manager. The Electrical, Mechanical, Civil and Instrumental manager has Deputy Managers under them the
69

corrective actions,

project

expenditure and

Managers of all the four sections then the Project Engineers and the Assistant Project Engineers. Organization chart of Maintenance Department
DGM (M)

Mechanical AGM (M) PPP- M M DM PE APE IBP- M M DM CMRS

Electrical AGM (E) M (E) DM (E) PE

Instrumentation AGM (I) M (I) DM (I) PE APE

Civil AGM (C) M (C) DM (C) PE APE Technicians / workers

PE (IBP)

PE (ARP) ARP (M)

PE (WTP/ boiler) APE Technicians / workers

Technicians / workers

Technicians / workers

Technicians / workers

The maintenance department consists of 6 centres: M1- IBP/ARP/SU area maintenance M2- PPP area maintenance M3- Central Maintenance Repair Shop vehicle maintenance and maintenance planning M4- MSDS and Electrical Repair Shop M5- Instrumentation Repair M6- civil section

70

M1- IBP/ARP/SU area maintenance: It looks after the mechanical maintenance works in the Ilmenite Beneficiation Plant, Acid Regeneration Plant and the service units comprising of boiler, water treatment plant and compressed air station. M2- PPP area maintenance: This centre is concerned with the maintenance works in the pigment production plant- Chlorination Plant (U-200), Oxidation Plant (U-300), Oxygen Plant and Pigment Finished Plant (U-400/500). M3- Central Maintenance Repair Shop vehicle maintenance and maintenance planning: It looks after the general maintenance of workers of the plant including the maintenance of vehicles, material handling vehicles, cranes etc and maintenance planning. M4- MSDS and Electrical Repair Shop: It handles the electrical supply system, electrical maintenance works including the maintenance if lightening, communication etc for all the plants and other areas. M5-Instrumentation Repair: This section controls the instruction maintenance works of all the plants. M6- civil section: This centre is concerned with the civil construction and maintenance of all the plant.

71

8. Research and Development Department

KMML maintains a fully equipped R&D facility in the area of pigment and paint technology with a view to establish world class products and competitiveness. The excellent facility undertakes Research, Development and Product Improvement. Scientists and engineers continuously pursue innovative technologies I the area of TiO2 pigment, quality improvement and other allied products. KMMLs Research and Development has achieved following tasks in recent times: Developed new grade RC-802 will excellent balancing properties of glass and weather ability. Successfully development an imported process of oxidation plant Developed know how to convert iron oxide process of oxidation plant Development grade RC-808 special grade for automotive coating The following works are on progress: Development of titanium oxychloride in pilot particles Pilot scale Development of Nano Titanium Dioxide particles Recovery of Beneficiated Ilmenite and Calcined Petroleum Coke (CPC) from the cyclone discharge of chlorination plant Development of TiO2 grade for decorative paper / Ilmenite application in lab scale. Monitoring the quality of water to check the feasibility of outsourcing water from Chambakadavu river Development of alternative raw material / supplier purification of crude Titanium Tetrachloride using treating oil supplied by HPC instead of IOC. Quality division In order to make their products move in the foreign market and to make their products achieve the status of world-class products, KMML maintains the quality standards as per of ISO 9002-1994 and got certified in
72

the year 7-7-2000. This had helped the company to successfully overcome the competition posed by the global rivals. Quality policy We delight the customers with world-class products and prompt service at competitive price. We shall work for continual improvement in the areas of delivery, new product development, communication, cost reduction, safe and clean work space, inventory control, and Human resource development and employee morale through implementation of ISO 9001:2000 quality management system The quality objectives of KMML are as follows: Continuous development in the areas of delivery Encouraging innovation and technology updating Training and documentation quality system Caring for requirement of the society Better communication, cost reduction For maintenance quality in all aspects, quality department ensures: Raw materials inspection Process inspection Finished pigment inspection Raw materials are inspected for TiO2 content, silica content, level of impurity and so on according to the specification which is fixed based on the demand. Each supplier should send their quality test report along with the materials. At KMML all these materials are tested for the desired qualities and if it does not match with the test report provided by the suppliers then it will be rejected. Process inspection is done by both conventional and instrumental methods. According to planning schedule, samples are collected in between the production process. Each plant has a spot lab. So, samples are tested both at main lab and also at spot lab according to the requirements. In other words, process is inspected round the clock for the desired qualities. Finished pigment

73

is also tested for desired qualities like colour, dispersion, Ph, oil absorption, gloss, strength and resistivity and so on. If there is any fault then the whole batch will be reprocessed.

Departmental structure of Research and Development Department

GM (R&D)

DGM Manager

DM

Officers

Staff

74

9. Technical Department
Departmental structure of Technical department
HOD

AGM (TS)

Quality Control

Plant technical service Manager

Research & development Scientific officer

Manager

DM

DM

Assistant officer

Scientific officer

Engineer

Analyst

Asst. Scientific officer fficer Analyst

Technician

This department acts as a third agency to the production and maintenance department. The technical wing takes charge of R&D, Quality control, laboratory and technical services. KMML maintain a fully equipped R&D facility in the area pf pigment and plant technology with a view to establish world class products & competitiveness. This excellent facility undertakes research, development and products improvement.

75

10. Project Department

Project department is engaged in the expansion programs of the company. They are engaged in the building up of new projects and also decide upon the future plans of the company. Some major projects on which KMML is currently engaged are: Project for separation of minerals at an cost of Rs.21 crores Capacity augmentation of Synthetic Rutile plant at an estimated cost of Rs.32 crores Organizational chart of Project department
Executive Director

AGM (F) Manager Deputy Manager Officers Asst. officer Staff

AGM (Technical) Manager Deputy Manager Officers Asst. officer Staff

76

CHAPTER 5: SWOT ANALYSIS, MICHAEL PORTERS FIVE FORCE MODEL ANALYSIS

77

SWOT Analysis:

S
Strong brand image. Monopoly nature of business. Price leadership. Availability of cheap and best quality raw materials. Good R & D department Eco friendly and socially committed. Experienced, highly efficient and competent manpower. Cordial relationship between management and employees. Quality of product comparable with world-class standards.

W
Policy of the government. Excess of workers. Lack of motivation. Underutilization of resources. Delay in decision making. Weight variation due to atmospheric effect on the packed product. External / Political / Government interference in company affairs. Trade union dominated firm. Lack of captive power generation. Lack of sufficient land for expansion, storing, hazardous waste disposal etc.

O
Demand in domestic as well as international market. Low competition, easy to be a market leader. Steady growth of paint, plastic, ink and cosmetics industries. Unexplored value addition sector like Titanium metal, Zirconium compound. Technical collaboration with ISRO in Titanium Metal Production. Faster growing Asian market where manufacturing facilities are limited. 78

T
Lower sales realization, giants like DUPONT, Kers-Mc Gee Ishihara and Crystals. Duplication chances by stockists. Existing infra-structure needs to be replaced. Policy change of Central and State Government regarding sand mining. Chances of being privatized in future. Cost of production will be higher due to increased price of petroleum products.

S Strength The availability of cheap and best raw material: The major source of raw material is black sand. It is available at Chavara beach near KMML. And also the mineral sand consists of Ilmenite, Rutile, Zircon, Silminate.

Highly technical oriented: All the activities of the organization are computerized and internet facilities are provided in all the segments of organization. Modern machinery and equipment are implemented to conduct the manufacturing process.

Eco friendly and socially committed: The product manufacturers in the organization are highly socio oriented in the sense that the quality of the product will be high and does not harm the environment. Transparency and accountability are specifically noted.

The cordial relationship with the management and the employees: At KMML the relationship between the management and the employee is very intensive. It means that the emotions and feelings of the employees are hypothetically considered by the management.

Financial stability with retained earnings for meeting future expensive project.

Good R & D department: The R & D programs of the organization are admirable. A new venture for manufacturing Titanium metal is about to commission.

79

W Weakness

Over employment: The number of workers in KMML is excess than what is required. Unnecessary apprentices, temporary employees and casual workers are employed in the organization.

Trade union dominated firm: The unnecessary interference of trade union is a drawback in the organization. It is determined to the smooth working of the organization.

Delay in decision making: A complex organization structure causes delay in decision making. It sometimes leads to time consuming also.

Under utilization of resources: All the resources of the organization are not used due to mismanagement, which results in wastage. It is not suitable for such an organization.

Policy of the government: The fluctuating governmental policy adversely affects the organization. The company needs to get more support from government.

Lack of motivation: Motivation is the primary aspect of any business organization. The company is reluctant to make the employees emotionally involved in their work.

80

O-Opportunity
Worldwide deposit of Ilmenite is decreasing day by day due to over exploitation. Where as in India only 10 % of total Ilmenite deposit is utilized.

Steady growth in users in the past few years. This implies that there will be steady growth in the consumption of Titanium Dioxide pigment in future.

T Threat
Chances of breakdown of machineries Much equipment in the pigment plant is about 20 years old. The chances of breakdown in future are high. Inherent disadvantage of state level Public Sector Company working in the global market. Increases the chance of marketing to foreign countries at cheap rate Since Titanium Dioxide is included in the Open General License (OGL) the import duty on OGL items is reduced to 0% by the end of 2006. This helps the foreign countries to market their products at cheaper rate. Cost of production is high. Cost of production will be higher due to price of raw materials like petroleum coke, burning oil and LPG will grow higher in the future. Chances of over exploitation of resources. Allowing private parties to mine minerals in the future may be possible. This will result in over exploitation of resources and also have foreign competitors to set up their plants in India.

81

Michael Porters Five Forces Analysis

Michael Porters Five Forces Analysis is the most influential and analytical model for assessing the nature of competition in industry. It also helps identify why some industries are more profitable than others. There are five key areas which need to be explored which are: Threat of entry Power of buying Power of suppliers Threat of substitutes Competitive rivalry

Threat of New Entry Is not a high barrier as it enjoys monopoly over the production Rutile grade TiO2 in the country. andhaworldwide recognition. Bargaining Power of Suppliers Competition Rivalry Is not very high as the main raw material is produced by the industry itself. Enjoys monopoly in India but face stiff from aboard. Is low because of increasing demand for TiO2 in many industries. Bargaining Power of Buyers

Threats of substitute No close substitute for titanium dioxide (TiO2)

82

Michael Porters Five Forces Model for KMML 1. Bargaining power of suppliers: This typically happens when the market is conquered by a few large suppliers rather than fragmented sources of supply and when there are no substitutes for the particulars inputs. In KMML, the main raw materials for the production are obtained from here itself (from the black sand of Chavara beach). So, the reliance over the suppliers is much lesser. Then about the about raw materials, there are a large number of suppliers for such inputs. So the company has a better choice potion therefore, the switching cost from one supplier to other will be less.

2. Bargaining power of customers: Bargaining power of customer determines how much customers can impose pressure on margins and volume; in KMML paint industry contribute large customers of TiO2, other largest customers include such industries as paper, plastic, the main customer companies are Asian paint, Berger paints. As the paint industry buys Titanium pigment in very large quantities of production, the company allows some but price offers for them.

3. Threat of new entrants: The competition in industry will be higher, the easier it is for other companies to enter this industry. KMML has a monopolistic nature in TiO2 pigment industry in India. The company has some competitors in the world market. The threat of new entrants cannot be avoided. A Titanium dioxide pigment plant is about to start very nearly in Thoothukudi. So that can be a threat for the company.

4. Threat of substitutes: A threat of substitution exists if there are alternative products with lowest prices or better parameters for the same purpose. As far as the
83

products of KMML (TiO2 pigment) is not so common in nature, the threat of substitution is not much high. Even if it happens the close customers relationship and the quality and finishing of the products can solve the problem to some extent.

5. Competitive Rivalry between existing players: Although the product is unique and the company has a monopolistic nature in TiO2 pigment industry in India it has many competitors in the world market. The main competitors are DuPont (USA), Ishihara (Japan), Millennium (Germany), Hoiter (USA),Tijin (Netherlands) etc. In India the other plants which produces Titanium pigment is there in Trivandrum. But it is mainly used for some other purpose and KMML is the only Rutile grade Titanium plant in Kerala.

84

CHAPTER 6: FINDINGS, SUGGESTIONS AND CONCLUSION

85

FINDINGS
Though it is the only integrated plant in world producing TiO2 as a public undertaking, political interference resists the company to become a giant in the industry. The inability of the management to control effectively the resistance raised by the local people in some radical issues will be great challenge to the company. A complex organization structure does exist in KMML. This leads to excessive delays in decision making and requires lot of paper work. During the year, the company has changed the valuation of finished goods of MS units to FIFO methods instead of LIFO method adopted till last year. Due to the change in the methods, the value of inventory as well as has come down. The increase in the export market indicates that the company maintains a better relationship with foreign customers. The company has adopted no special strategies to compete with the foreign competitors. Since there is an absence of storage facilities for the chlorine gas which is liberated in the oxidization plant, the company has to simultaneously work both the oxidation plant as well as the chlorination plant. If any of them break down the entire production work will stop.

86

SUGGESTIONS
All the political decisions that are concerned with the company must be impartial and helpful for the growth of the company. Recruitment and selection should be transparent. In the ear of high competition, flexible organization structure suits the situation than an organization with a complex type of structure. By reducing the levels in the organization, quick decisions can be taken without much delay. Presently the payment bills are done through demand draft, letter of credit, telegraphic transfer etc. implementation of e-payment facilities will likely help the company to get more acceptances in the international market. The KMML should organize adequate strategy to compete with foreign companies. There must be a separate department of sales for reducing the workload of marketing department. Advertisement should be given for KMMLs product in print media like industrial magazines, journals etc.

87

CONCLUSION
Kerala Minerals and Metals Limited (KMML) under the Government of Kerala is the Indias first and only manufacture of Rutile grade Titanium dioxide pigment using Chlorides route. It has won National Acclaim for its impression performance. It produces about seven grades of titanium dioxide pigment and its products range includes Titanium Tetra Chloride, Ilmenite and Rutile etc. KMML has monopolistic position in the Rutile Titanium Dioxide pigment industry in India. But the firms position will be severely hit by zero percentage cut in import duties of TiO2 pigment by 2006. Moreover its existence will be severely affected by the chances of issuing closing orders by the Pollution Control Board of India. Like the other organization. It also tries very hard to sort out its weakness and designs new strategies for converting the organization into an ever-flourishing organization. Success of a company depends on the strategic management of all the available resources. External and internal environment decide the growth of the company. Strategic management is concerned with controlling and managing of this environment. It has to go forward with its great vision and mission.

88

BIBLIOGRAPHY
Books: Kothari.C.R(2010), Research methodology (Methods & Technology) Revised Second edition, Prentice Hall of India Kotler Philip, Armstrong, Gary(2006) Prentice Hall, New Delhi Dr.Maheswari.S.N. (2007) Financial and Management Accounting(Fifth edition), Sultan Chand &Son Mamoria, C.B, Tanker, S.V (2006) Human Resource Management, Himalayan Publishing House Pandey, I.M(2007) Financial Management, Vikas Publishing House. Robbins, Stephen P. (2004), Organizational Behavior (10th Edition), Prentice-Hall India. Principles of Marketing, Pearson

Journals/Manuals: Department Varnam (Quarterly Newsletter from KMML) Annual Report (2010-2011)

Company Brochures

Website: Official Website: www.kmml.com

89

CHAPTER 7: ANNEXURE

90

Balance sheet as at 31st March 2011

Particulars
Shareholders Funds Share Capital Reserves & Surplus Deferred Tax Liability Total Application of Funds Fixed assets Gross Block Less: Depreciation Net : Block Capital work in progress Investments Current assets, Loans and Advances Current Assets Inventories Sundry Debtors Cash and Bank balance Other current assets Loans and advances

As Per schedule
A B C

As at 31/03/2011 (Rs in Lakhs)

3093.27 46188.50 1232.85 50514.62

As at 31/03/2010 (Rs in Lakhs)

3093.27 45174.12 1184.47 49451.86

N 39210.24 17326.84 21883.40 15816.38 37399.78 3517.60 33707.00 15903.03 17803.97 12661.25 30465.22 17.60

F G

H 6810.45 6421.85 12144.93 559.83 10925.71 36862.77 6735.46 4709.92 13808.32 707.91 7073.93 33035.54

Less: Current Liabilities and Provisions Current Liabilities Provisions

D E 24897.30 2368.30 27265.53 9597.24 11667.93 2398.57 14066.50 18969.04

Net Current Assets Significant Accounting Policy Notes Forming Part Of Accounts S T 50514.62 49451.86

91

ABBREVIATIONS
AGM ARP BHPV CIPET DD DM DRDO DSIR EDP ESI ETP F&S FeTiO3 IBP IDBI IFCI ISO ISRO ITC Kg KMML KSEB LAN LIC LPG MD MS MT MTD OHSAS OSHSAS PF P&A PSC QC R&D SBI SBT TAAS TA TiO2 Assistant General Manager Acid Regeneration Plant Bharat Heavy Plate and Vessels Limited Central Institute of Plastic Engineering and Technology Demand Draft Deputy Manager Defence Research & Development Organization Department of Scientific & Industrial Research Electronic Data Processing Employees State Insurance Effluent Treatment Plants Fire & Safety Titanium Iron Oxide Ilmenite Beneficiation Plant The Industrial Development bank of India Limited The Industrial Finance Corporation of India International Organization of Standards Indian Space Research Organization Indian Trade Classification Kilo Gram Kerala Minerals & Metals Limited Kerala State Electricity Board Local Area Network Life Insurance Corporation Of India Liquefied Petroleum Gas Managing Director Mineral Separation Unit Metric Tonne, is a unit of mass equal to 1000kg Metric Tonnes Per Day Occupational Health & Safety Assessment Series Occupational Safety & Health Administration Provident Fund Personnel & Administration Public Service Commission Quality Control Research & Development State Bank of India State Bank of Travancore The Technology Absorption & Adaptation Scheme Travelling Allowance Titanium Dioxide 92

TP TS

Titanium Dioxide Pigment Unit Technical Services

93