A Report 0n The Ion Study At

Travancore Cements Ltd.

LIST OF TABLES & CHARTS TABLE OR CHART

Page NO

Study plan

5

Organization structure

17

Profit & Loss A/c

21

Balance Sheet

22

Structure of the production department

25

Production process

33

Structure of the personnel department

35

List of Apprentices

45

Allowances to employees

46

Employees’ strength of TCL

47

Structure of finance department

48

Structure of the marketing department

55

Pricing of the product

57

Structure of the purchase department

61

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Organisation study 2008

Travancore Cements Ltd.

CHAPTER-1 INTRODUCTION

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Travancore Cements Ltd.

GENERAL INTRODUCTION When earth itself was undergoing intense geologic changes, natural cement was being created. It was this natural cement that humans first put to use. Eventually, they discovered how to make cement from other materials. Cement is a finely grounded powder which when mixed with water sets to a hard material. Cement has been most exclusively used as a building material for past several years and remains so even today. It is exclusively used in constructing roads, buildings, bridges, dams, canals and in number of other places. New users are being found all the time, as now we have cement concrete railway sleepers, electric poles, tenting and even manhole covers. No replacement exists for the cement in foreseeable future and it is bound to retain its prominence in the field of construction. The ancient Romans developed cement and concrete similar to the kinds used today. They manufactured cement by mixing slaked lime (lime with water) with a volcanic ash called Pozzuolana. People lost the art of making cement after the fall of Roman Empire in AD 400’s. In 1759, John Sneaton , a British Engineer found how to make hydraulic cements by using blue lime with clay content and Pozzuolana from Italy. I. C. Johnson produced Portland cement in 1845. Portland cement contains about 60% lime, silica and 5% alumina. Iron oxide and Gypsum make up the rest of the materials. In the plant the materials go through a chemical process that consists of three basic steps namely crushing, grinding, burning and finish grinding. Cement was developed by Joseph Asp Din of England. He manufactured commercially the improved quality of Portland cement in a country market kiln in the year 1848. The present day high quality cement is unique versatile building material, a product of technological development. Cement produced on 21st October 1854 was patented as Portland cement. Industrial era in Kerala and its beginning from the time of Sir C.P Ramaswamy Iyer, Diwan of Travancore State during the pre-independence period. He knew that the cement is one of the basis industrial needs for the speedy industrialization of the state and felt it is very essential for the state to have atleast a cement factory. But lime stone

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Travancore Cements Ltd. deposits of the required quality were not available to start a cement plant factory in travancore. However, lime shells available in the backwaters offered in alternative ofcourse a better source for calcium raw material. Sir C.P Ramaswamy Iyer induced the promoters of TCL for pulling up cement plant based on the lime shell reserve. Thus the first cement plant starts its operation on 7.12.1946 in Kerala.

SCOPE OF THE STUDY The study is about the major functioning of Travancore Cements Ltd. Nattakom, The study is mainly based on the details collected from each department. Each and every activities of the company is studied very carefully with the data available. This study is very beneficial to the future managers as they are put into the real life situations. A study on all the departments can help to improve the process and there by an over all improvements in the company’s performance can be made.

OBJECTIVE OF STUDY The objectives of the study are:  To get familiar with the organization.  Getting practical experience regarding the organisational function.  To learn about the policies and functions of the organisation  To understand the culture in the organisation and its effect on employees.  To get industrial exposure and experience.

 To understand the marketing and production methods To acquire knowledge about the managerial aspect of the firm.

REASON FOR SELECTING THE COMPANY The following are the main reasons why I selected TCL for my organizational study:  TCL is one of the oldest manufacturing industries in Kerala.  TCL have sufficient number of departments and also the one that is engaged in active performance in the industry.  TCL is an organization working with a big work force.

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Travancore Cements Ltd.

 TCL

is one of the famous organization in Kerala involved in the

manufacturing activities.

STUDY PLAN 15-05-2008 16-05-2008 19-05-2008 20-05-2008 21-05-2008 22-05-2008 23-05-2008 26-05-2008 27-05-2008 28-05-2008 29-05-2008 30-05-2008 02-06-2008 03-06-2008 04-06-2008 06-06-2008 09-06-2008 10-06-2008 11-06-2008 12-06-2008 13-06-2008

General study General study Visited running plant Observed the working of dredger& unloading of lime shell Visited production department Visited production department Visited personnel department Visited personnel department Visited finance department Visited finance department Visited marketing department Visited marketing department Visited purchase department Visited purchase department Visited packing house, time office, security department Visited maintaince department, work shop etc Visited lab, transportation department etc Preparation of report Preparation of report Submission of report Applied for certificate

DATA PROCESS METHODOLOGY OF THE STUDY

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Organisation study 2008

Travancore Cements Ltd. Research methodology is a way to scientific and systematic research for pertinent information on a specific topic and solves the research problem.

METHODS OF DATA COLLECTION The data collected constitutes both primary and secondary data.

PRIMARY DATA Primary data are those which are a fresh and for the first time and thus happen to be original in character. Primary data were collected by direct interview with the authorities and staffs and by observation and participation.

SECONDARY DATA Secondary data are those which have already been collected by someone else and which have been passed through the statistical process. Secondary data were collected from various records kept in departments, company profiles, magazines and websites.

LIMITATION The following are the limitations which I found during my organization study:  Some of the data were treated confidential and hence it was difficult to get the same.  Most of the datas’were collected through interviews and so the information is subjected to be biased.  A detailed interview schedule couldn’t be administered to get primary data.

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Travancore Cements Ltd.

CHAPTER 2 INDUSTRY PROFILE

CEMENT INDUSTRIES IN INDIA The cement industry comprises of 125 large cement plants with an installed capacity of 148.28 million tonnes and more than 300 mini cement plants with an estimated capacity of 11.10 million tonnes per annum.

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Travancore Cements Ltd. The Cement Corporation of India, which is a Central Public Sector Undertaking, has 10 units. There are 10 large cement plants owned by various State Governments. The total installed capacity in the country as a whole is 159.38 million tonnes. Actual cement production in 2002-03 was 116.35 million tonnes as against a production of 106.90 million tonnes in 2001-02, registering a growth rate of 8.84%. Major players in cement production are Ambuja cement, Aditya Cement, J K Cement and L & T cement. Apart from meeting the entire domestic demand, the industry is also exporting cement and clinker. The export of cement during 2001-02 and 2003-04 was 5.14 million tonnes and 6.92 million tonnes respectively. Export during April-May, 2003 was 1.35 million tonnes. Major exporters were Gujarat Ambuja Cements Ltd. and L&T Ltd. The Planning Commission for the formulation of X Five Year Plan constituted a 'Working Group on Cement Industry' for the development of cement industry. The Working Group has identified following thrust areas for improving demand for cement; i.

Further push to housing development programmes;

ii.

Promotion of concrete Highways and roads; and

iii.

Use of ready-mix concrete in large infrastructure projects. Further, in order to improve global competitiveness of the Indian Cement

Industry, the Department of Industrial Policy & Promotion commissioned a study on the global competitiveness of the Indian Industry through an organization of international repute, viz. For India, the world's second largest producer of cement, the recent boom in infrastructure and the housing market has only boosted its cement industry. Add to that an increasing global demand and a flurry of activity in infrastructure projects – highways roads, bridges, ports and houses – has sparked off a spate of mergers and acquisitions in the sector. Furthermore, the country’s finance minister, P. Chidambaram, has stated that India would double spending on infrastructure over the next five years to sustain its record economic growth and modernize its infrastructure. Cement companies are fast developing plants to provide for a rapidly expanding economy. The cement industry is therefore poised to add 111 million tonne (mt) of annual capacity by the end of 2009-10 (FY10), riding on the back of

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Travancore Cements Ltd. approximately 141 outstanding cement projects. According to a report by the ICRA Industry Monitor, the installed capacity is expected to increase to 186 mt per annum (mtpa) by FY08-end, and 219 mtpa by end of FY09, and further up to 241 mtpa by FY10-end. As a result, India’s cement industry will record an annual growth at 10 per cent in the coming years with higher domestic demand resulting in increased capacity utilisation.

DOMESTIC PLAYERS While the Cement Corporation of India, a Central public sector undertaking, comprises 10 units; the various State governments own 10 large cement plants. Among the leading domestic players in terms of cement manufacturing are: Ambuja Cement, Aditya Birla Group (which owns UltraTech Cement), ACC Ltd., Binani Cement, India Cements and J K Cement. They are not only the foremost producers of cement but also enjoy a high level of equity in the market.

GLOBAL PLAYERS Rapid urbanisation and the booming infrastructure have lead to an increase in construction and development across India, attracting even the global players. The recent years have witnessed a surge of foreign direct investment in the cement sector. International players like France's Lafarge, Holcim from Switzerland, Italy's Italcementi and Germany's Heidelberg Cements hold more than a quarter pie of the total capacity. •

Holcim, one of the world's leading suppliers of cement, has 24 plants in the country and enjoys a market share of about 23-25 per cent. It will further invest about US$ 2.49 billion in the next five years to set up plants and raise capacity by 25 mt in the country. Holcim has a global sale worth about US$ 20 billion, where India contributes US$ 2–2.5 billion.

•

Italcementi Group, the fifth largest producer of cement in the world acquired full stake in the K.K. Birla promoted Zuari Industries' cement, to strengthen its presence in India lining up US$ 300 million investment to increase the capacity of Zuari Industries from 1.7 mtpa to about 6-7 mtpa. Moreover, it plans to invest

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Organisation study 2008

Travancore Cements Ltd. US$ 174 million over the next two years in various greenfield and acquisition projects. •

The French cement major, Lafarge, acquired the cement plants of Raymond and Tisco with an installed capacity of 6 mtpa. It plans to double its capacity to 12 mt over the next five years by adopting the greenfield expansion route.

•

Heidelberg Cement has entered into an equal joint-venture agreement with S P Lohia Group controlled Indo-Rama Cement. It aims at a 50 per cent controlling stake in Indo-Rama's grinding plant of 0.75 mtpa at Raigad in Maharashtra. Heidelberg is also taking over Mysore Cement of S K Birla group at a consideration of US$ 93 million.

DECLINING ROLE OF PUBLIC SECTOR Historically, cement has been one of the most important areas of operations for the Indian private sector. Unlike

much of heavy industry and utilities,

cement was not deemed to be the exclusive preserve of the State sector in the postindependence development strategy. Cement was also the industry of choice of many corporates diversifying away from the troubled traditional areas of jute and textiles. Over the years, the share of the public sector in cement production has declined. While the private sector (large companies) accounts for around 95% of the total installed capacity, the share of public sector companies has declined from a level of 11% in financial year 1996 to around 4.4% in

financial year 2006. The share in

production of the public sector companies is even lower at 1.2% in financial year 2006 as compared to 6.5% in financial year 1996. Among cement public sector undertakings (PSUs), Cement Corporation of India (CCI), a central PSU, is the leading player. It has 10 cement plants with a total installed capacity of 3.85 mtpa at end financial year 20 06. Other PSU companies manufacturing cement include State entities such as UP State Cement Corporation (3 units with total capacity of 2.16 mtpa); and Tamil Nadu Cement (2 plants with a total capacity of 0.9 mtpa). Given the extent of losses being incurred by most of these plants, restructuring and revival through privatization appears imminent. Accordingly, the Yerraguntla unit in Andhra Pradesh, which belonged to CCI, was taken

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Organisation study 2008

Travancore Cements Ltd. over by India Cements in FY1998. The three units of UP State Cement Corporation have been closed since early 1998. These units were taken over by Jaypee Group in financial year 2006.

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Travancore Cements Ltd.

CHAPTER 3 COMPANY PROFILE

COMPANY PROFILE

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Travancore Cements Ltd. The Travancore Cements Ltd is the only manufacture in the world producing white cement from natural lime shells. The company was incorporated in 9th October 1946. The master brain behind the establishment of the plant was that of late Sir.C.P Ramaswamy Iyer, the then dewan of Travancore,who had reali zed the vital role of cement in the industrial development of Kerala. The company was promoted by M/s Essel Limited, Bombay and the Technology tie up was made with M/s F.L.Smidth & Co., Denmark. The Travancore Cements Ltd is the only manufacturer, perhaps in the whole World, producing white cement from a raw material other than conventional lime stone. The raw material for cement is lime shell, which is dredged out from Vembanad Lake; one of the back waters of Kerala. Lime shell is one of the purest sources of calcium carbonate available for the cement manufacturer. As it contains magnesium oxide in traces only the white cement out of lime shell is highly durable and superior in quality, quick setting and stronger than white cement made from limestone. In 1988 the company has set up its cement plant at Kakkanadu, near Cochin with an installed capacity of 120 tones per annum on a single shift. As the production was far below figure due to insufficient raw material supply, the plant was forced

to

close down. The employees of this plant were absorbed by the parent company itself.

LOCATION Travancore cements Ltd is situated on the banks of Kodoor River and on the side of state highway M.C Road 4km away from the Kottayam town in kerala, the southern most state in India. The location of the plant is in such a way that is accessible by both land and water. The beautiful locality in which the company is situated extends over an area of 60 acres. The location facilitates the need of transportation of raw material and finished goods.

PROMOTERS

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Travancore Cements Ltd. The company was originally started under private management of M/s Essel Pvt. Ltd. In 1975 government of Kerala took over the management of the company. The director of the managing agency of the company at the time of its commencement was Mr. T.S. Narayanaswamy. The factory was installed under the supervision of Mr. S. Rudlinger. Now the government of Kerala is holding 51.33% of the equity share capital. The pyramid group of the company is holding another 25% of the shares and the remaining shares are held by General Public.

BRANCHE S AND OFFICE S The company has its registered office and factory at Nattakam, Kottayam, and Kerala. It has a regional office at Trivandrum apart from this it also has depots at Bangalore, Coimbatore and Vijay Wada.

PRODUCTS The products produced in TCL are:  White cement  Super Shelcem (Cement Paint)  Wa l l P u t t y

WHITE CEMENT Vembanad White Portland cement is manufactured from the nature’s gift of rare rawmaterials which are Crystal Gypsum are the raw materials. Technology used F.L. Smith & Company, Denmark, conforms I S 8042 E 1976 specification.

Outstanding Qualities Of Vembanad Brand White Cement •

Lowest magnesia content and hence the most durable White cement.

•

Brillant whiteness.

•

High strength

•

Super soundness

•

Excellent properties

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Travancore Cements Ltd. •

Ideal for manufacture of Cement Paints,Mosaic Tiles.

SUPER SHELCEM (CEMENT PAINT) Super Shelcem is a technologically unique formulation with the most durable “Vembanad” White cement. It contains a high percentage of light fast pigments, which help colour retention.It contains more White cement than any other Cement Paint in the country. SuperShelcem does not rub, flake or peel off and can be washed. Is un affected by normal climate conditions and protects the wall against fungi growth. Ideal for coating on concrete, asbestos, cement sheets, fibreboards or any Cement surface. Depending on the surface coverage of 7 to 10 Sq.m./kg for two coats is achievable. It is more easy to apply and hence save time and labour and is quick drying.

Properties i . WATER PROOFING Super Shelcem offers excellent protection for the walls against monsoon and fungus growth. ii . CAPACITY Any previous deep shade made on the surface can be effectively hidden with a single coat of super shelcem. The second coat completely overs the dark patches and stains on the wall. iii . COVERAGE Super Shelcem covers greater area than any other cement paint. 1 kg. Covers 100 sq. ft. for a single coat or 65 sq. ft. for two coats. iv.

ADHESION Super shelcem can be applied on a wide variety of surface like cement plaster,

concrete, bricks works, stone and lime plastered surface.

WALL PUTTY

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Travancore Cements Ltd. It is a recently launched product. The base of wall putty is time tested Vemband brand White cement. The object of the Company is to offer Putty of the highest quality, giving the smoothest finish, highest coverage and durability. It has more coverage than any other dry wall putty in the market. Due to low MgO content of Vemband white cement , the durability of Vemband wall putty is more.

OBJECTIVE OF THE COMPANY The main objectives of the tcl are the following  To produce white cement paints using natural resources  To provide employment opportunities  To earn maximum profit  To provide training to apprentice  To make the company as the market leader.

QUALITY POLICY OF THE ORGANISATION We at TCL are committed to continual improvement of the system enhancing customer satisfaction

by providing

consistent quality

products through the

implementation of Quality Management System.

VISION OF TCL In the fast paced global development as the barriers are withering away. India need proper external synergy creations from the manufacturing sector for which TCL, pioneer of the white cement manufacturing in the country , can play a remarkable role and so is committed towards effective utilization of Man, Machine, Material and Money (4 M’s)

MISSION OF TCL Having a unique role in the Heavy industry sector of the country, TCL is committed for catering the society towards the specific need expected by producing quality product at a customer friendly price while keeping subsatianed growth of the organization and total growth of the society.

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Travancore Cements Ltd.

ORGNISATION STRUCTURE

Board of DIrectors

Managing Director

GM(O)

CM(M&E)

SrM (LIO)

JCM R&D

GM(CS&F)

CM(M&W)

SrM(MM)

CM(F&A)

CM(P&A)

Jrm cash

SrM (Mktg )

Med Officer

JCM (Engg)

AM cash

DM (MM) Pharmacist

CTK JRM R&D

JRM QC

DM (Mait)

DM (Serv)

DM Per

DM Prd JrM Fin

Security Officer Jrm Engg

Jrm IR

Jrm Prd

Jrm CP

Jrm Kiln

Foremen Elec JrEX JR MM Asst chemist

Jrm Per Foremen

Jrm (Mktg)

Trans supdt

Supdt Sales

Civil Supvr

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Chief Burner

MH SUPR

Stores supdt

Jr Exe

Organisation study 2008

Travancore Cements Ltd.

DIRECTORS The responsibilities of the directors are:  Deciding the policies of the company  The preparation of annual accounts, the applicable accounting standards have been followed  Accounting policies were applied consistently and the judgments and estimates made, are reasonable and prudent so as to give a true and fair view of the affairs of the company  Proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities have been taken  The annual accounts have been prepared on a going concern basis.

MANAGING DIRECTOR The main responsibility of Managing Director is to implement the policies decided by the Board of Directors .

GM(O) All departments except financial department is under the control of General Manager Operations. He is responsible to

arrange all requirements of the the

departments under him.

GM (CS&F) GM(CS&F) has got overall control of finance . He is also the Company Seceretyand he is responsible for conduct of annual general body meeting

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Travancore Cements Ltd.

DIFFERENT PHASES OF DEVELOPMENT  Started production of Grey Cement in August 1949.  Started production White Cement in 1959  Grey Cement production stopped in 1976.  Diversified into Cement production in 1977.  Celebrated Silver Jubilee in 1972.  Became a Government Company in April 1989.  Celebrated Golden Jubilee in 1997.  Dry Cement Primer 'Shelprime' production started in January 2000.  Acrylic Emulsion Paint for exterior & Interior. Sheltex launched in April 2000  Started production of 'Vembanad' 43 grade OPC in September 2000.  ISO 9002 certification received for the Company during December 2000  Due to the lack of market demand Sheltex & Shelprime were stopped production in 2000.  2 0 0 8 F e b u r a r y T C L s t a r t e d p r o d u c t i o n o f Ve m b a n a d w a l l putty

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FINANCIAL PERFORMANCE OF THE COMPANY The financial performance of the company is unsound as the company is running at a loss for past 8 years. The main reason for this is the rise in the price of furnace oil which is used as thermal energy in the production process. As some changes has made in the production process the company expect that it will earn a marginal profit this year. The turnover of the Company for the year 2006-2007 was Rs.2374.09 lakhs as against turnover of Rs.1667.78 lakhs in the previous year, registering continues an increase of Rs.7065.31 lakhs over the previous year. The income from the other sources for the year 2006-2007 was Rs.42.27 lakhs as against Rs 25.12 lakhs for the previous year. Income from other sources has gone up Rs.17.15 lakhs. As a result of substantial inctease in turnover as also income from other sources the loss for the year 2006-2007 has come down to Rs.84.27 lakhs from loss of Rs.390.01 lakhs in the previous year. The main reason for incurring loss during 2006-2007 despite substantial increase in turn over was increased cost of furnace oil. The average cost of furnace oil has gone up by around Rs.900/-per KL from an average cost of Rs.15386.11 in 2005-2006 to Rs.16284.19 for 2006-2007.The Company continues to exercise strict control on expenditure. The company has received Rs.100 lakhs from Government of Kerala on 08-02-2008. The total financial assistance received from Government so far from 2005 onwards is Rs.487 lakhs. As the Company has incurred loss, Directors have decided to pass over dividend for the year 2006-2002. The Profit & Loss A/c and balance sheet for the year 2007 is given below:

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PROFIT &LOSS A/C FOR THE YEAR ENDED 31 MARCH 2007 Particulars

31-03-2007 RS

I. INCOME Sales Less Excise Duty Net sales Other Sources

27,51,87,770 3,77,78,668 23,74,09,102 42,26,600 24,16,35,702

II. EXPENDITURE Raw Materials Consumed (Increase)/Decrease in Stock Manufacturing and Other Expenditure Depreciation

III. PROFIT/(LOSS) FOR THE YEAR BEFORE TAXATION Provision for taxation Profit/ (Loss) after taxation Add: Excess provision written back Doubtful Advance Doubtful Debts Deferred Tax Liability Profit /(Loss) for the year Add: Profit /(Loss) carried forward Balance in General Reserve Adjusted

Balance Profit/(Loss) forwarded to Balance sheet

21

31-03-2006 Rs 19,29,96,446 2,62,18,570 16,67,77,876 25,12,402 16,92,90,278

2,23,55,632 (1,37,55,958) 24,03,35,229 11,28,360

2,24,29,952 1,51,57,541 17,16,70,537 12,88,010

25,00,63,263

21,05,46,040

(84,27,561)

(4,12,55,762)

(84,27,561)

(4,12,55,762) 5,38,003 17,790

(84,27,561) (8,70,16,247)

16,98,756 (3,90,01,213) (4,80,15,034) (8,70,16,247)

(9,54,44,808) 6,98,29,629

(2,56,14,179 (8,70,16,247) )

Organisation study 2008

Travancore Cements Ltd.

BALANCE SHEET AS AT 31 MARCH 2007 Particulars

31-03 -2007

I. SOURCES OF FUNDS 1.SHAREHOLDERS’ FUND: a)Capital b)Reserves and Surplus 2.LOAN FUNDS: a)Secured Loans b) Unsecured Loans 3.GRANT:From Govt of Kerala

TOTAL II. APPLICATION OF FUNDS 1.FIXED ASSETS a)Gross Block b)Less: Depreciation c)Net Block 2.INVESTMENTS 500 B class shares of Rs100/- each in Employees’ Co-operative Bank Ltd 3.CURRENT ASSETS,LOANS &ADVANCES a)Inventories b)Sundry Debtors c)Cash & Bank balances d)Loans & Advances LESS:CURRENT LIABILITIES AND PROVISIONS a)Liabilities b)Provisions

31-03-2008

50,000 67,04,359

50,000 7,65,33,988

1,26,00,000 2,50,00,000

1,26,00,000

4,93,04,359

9,41,33,988

8,37,79,272 7,27,02,909 1,10,76,363

8,32,79,009 7,15,74,549 1,17,04,460

50,000

50,000

6,12,43,539 32,96,251 3,18,66,118 1,56,33,697 11,20,39,605

4,98,13,455 32,82,132 89,41,045 2,06,35,902 8,26,72,534

8,66,56,241 1,29,40,900 9,95,97,141

7,55,69,266 1,18,61,340 8,74,30606 (47,58,072)

1,24,42,464 NET CURRENT ASSETS 4.MISCELLANEOUS EXPENDITURE: Preliminary Expenses for: 1) Modernisation Project 2) Small Hydro Projects 3) Ready Mix Concrete Project

66,353 20,000 35,000 121353 2,56,14,179

66,353 20,000 35,000 8,70,16,247

4,93,04,359

9,41,33,988

5.PROFIT & LOSS ACCOUNT

TOTAL

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FUTURE PLANS The company has planned some diversification schemes which will be implemented in the near future, which include proposal to insist setting up of Enamel paints and textured coating under cooperative societies. There are proposals to start a pocking unit, the venturing project for manufacturing Calcium nitrate and Dicalcium phosphate, shifting of present technology to dry process technology, reinitialize the production of Grey cement and the proposal to export white cement to Srilanka, Gulf, South Africa and Mauritius. The company is at present having a bright future ahead.

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CHAPTER 4 DEPARTMENTAL DETAILS

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PRODUCTION DEPARTMENT STRUCTURE OF THE PRODUCTION DEPARTMENT GENERAL MANAGER (O)

CHIEF MANAGER

DEPUTY MANAGER

JUNIOR MANAGER

CHARGE HANDS

BURNERS

SENIOR MACHINE OPERATOR FOREMEN

FUNCTIONS OF PRODUCTION DEPARTMENT •

To produce high quality products

•

To make optimum utilisation of minimum resources

•

To maintain the consistency in purity

•

Ensure production without any interruption

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WHITE PORTLAND CEMENT The machineries and equipment required for the manufacturing process is listed in the order of operations. 1. DREDGING AND STORAGE OF LIME SHELLS a) Dredger b) Diluting pump c) Gravel pump d) Receiving tank e) Rotary filter f) Conveyors g) Storage tanks (Silos) 2. PROCESSING OF LIME SHELL WHITE SAND AND WHITE CLAY a) Water pump b) Wash mill c) Clay pump d) Ball mill e) Elevators f) Lifting service g) Slurry pump h) Slurry silo 3. PROCESSING OF CLINKER a) Rotary Kiln b) High pressure screw pump c) Hammer crusher d) Shaking and bucket elevators e) Clinker silos 4. PROCESSING OF CEMENT a) Cement mills b) Belt and screw conveyors c) Cyclone separators d) Dust collectors e) Air compressors f) Cement silos g) Packing machines

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RAW MATERIALS Vembanad white cement is manufactured from nature’s gift of rare raw materials which are unique in consistent purity. The company is using high quality raw materials and net process in order to maintain quality of its products. The main raw materials are lime shell, white sand, white clay and crystal gyps. a) LIME SHELL The main raw material lime shell is procured from under water deposits of Vembanad Lake. Chemical analysis of lime shell reveals that almost 99% accounts for calcium carbonate (CaCO3). While the presences of usual impurities like iron and magnesium compounds are negligible in significance. Vembanad white cement has the distinctive feature of being the only cement that is manufactured from lime shell. b) WHITE CLAY White clay or crude china clay is obtained from southern parts of Kerala, particularly from Trivandrum District. These white clay deposits are known for their purity and high ceramic properties. The milky white clay, which is in paste form, that go in to manufacturing process of Vembanad white cement, is almost 85% pure Hydrated Aluminium Silicate.

c) WHITE SAND Earlier white sand was being bought from Chertala in Kerala . But now since white sand is not available at Chertala it is bought from British India Clay Company Trivandrum.

d) GYPSUM Helps to restore the setting action of cement and enhances the initial setting time of cement. It is bought from Tuicorn, Tamilnadu.

PRODUCTION PROCESS OF VEMBANAD WHITE CEMENT The basic cement making process of collecting raw materials, grinding them to affine stage, blending them to a uniform composition and heating them to the paint of sufficient fusion when the cement compounds are formed. Portland cement is the product obtained by cooling and grinding the clinker those formed with gypsum to a fine powder.

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Organisation study 2008

Travancore Cements Ltd. The production process can be mainly divides into three stages 1. Slurry preparation 2. Clinker making 3. Clinker grinding The different processes under these main stages are: 1. Dredging 2. Unloading station 3. Wash mill 4. Shell sand grinding (Ball mill) 5. Slurry making (Raw mill) 6. Slurry section 7. Clinker making (Rotary Kiln) 8. Clinker grinding (Cement mill) 9. Packing and Dispatching 1.DREDGING The main raw material for the production of the Vembanad white cement is lime shell, which is an under water deposit in the Vembanad Lake. It is dredged and brought to the company by means of power bargers. The company has two dredgers, one hydraulic dredger and one mechanical dredger. The capacity of two dredgers may be about 30 Tonnes per hour. The dredger can cut the lime shell around 40 feet maximum depth. The dredger works on two powerful engines, a dredger pamper engine and an auxiliary engine.

DREDGER OPERATION The dredger is placed anywhere in the lake using spuds, one at a lowered position while the other spud is at the raised position. The cutter is about 10 metres length. It can cut the shell to a maximum of 30 feet from the water level. For cutting, the cutter is placed downwards by using a winch when spud 1 is centered which is loosened and the cutter moves to clock wise direction. Similarly, when the spud 2 is entered the winch 2 is 100 send cutter moves in anti clockwise direction and cut the shell and after primary washing, the shell is transferred into the barge.

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Organisation study 2008

Travancore Cements Ltd.

ll. UNLOADING STATION The shell brought by the barger from the lake is unloaded here. Shell in the barger is diluted with about 60% water by means of a diluting pump for easiness of sucking. A sucking pump draws water along with the shell to the receiving tank near the rotary grill of the screening plant. The shell is then passed through the rotary grill and waste materials are washed out during its rotation. Cleaned shell is either passed to the belt conveyors through hoppers or stored outside. There are two rubber conveyors (conveyor 1short and straight conveyor, conveyor 2 long and inclined) for conveying the shell to the ball mill hopper or to the crane gantry.

III. WASH MILL Before actually using for the process, the clay is mixed with water. This work is done in a clay wash mill. Clay is put into the mill and about 65% water is also added during the grinding. During the hammering action of the weights provided in the wash mill, clay is made to watery and is pumped to a storage tank known as Silo. From Silo it is taken for the processes when required.

IV. SHELL-SAND GRINDING (BALL MILL) Slurry preparation is the fourth stage in the production process of white cement. Slurry is a mixture of shell sand and clay with around 40% water. For slurry preparation two grinding mills are used.  Roughing mill known as Ball mill.  Finishing mill known as Raw mill. Ball mill is a cylindrical shell of welded metal plates. The shell along with the required amount of white sand and water is fed to the ball mill by a rotating feed table. When the mill rotates the materials are crushed down to small particles while it passes through the balls. The materials coming out of the ball mill is diverted to a hammer screen by means of a slurry elevator. Fine material comes out of the hammer screen and is fed to the raw mill. The course materials return to the ball mill for further grinding.

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Organisation study 2008

Travancore Cements Ltd.

V. SLURRY MAKING (RAW MILL) The raw mill is a hollow cylindrical shell, the inside of which is lined with flint blocks. The steel linings are avoided to reduce the contamination of slurry by iron. The grinding media used id Flint pebbles. The mill is rotated by a motor at a constant speed while passing through the mill, the fine materials are discharged from the ball mill and the clay pumped from the clay silo are finally grounded and comes out as a party material known as slurry which then flows to the slurry pit.

VI. SLURRY SECTION Slurry discharged from the raw mill is stored in Silos by means of pumps. The chemical composition of the slurry will be adjusted at this stage. There are three Silos for storing the slurry. From these Silos slurry is pumped to the slurry basin. In the basin slurry is constantly agitated with the compressed air and is stirred well. The slurry is taken from this basin for burning in the kiln.

VII. CLINKER MAKING (ROTARY KILN) Kiln is a cylindrical steel shell with refractory bricks lining, mounted at an angle of 60 to base on roller supports, so that it can be rotated. The Kiln is having a length of about 285 feet. Its diameter varies from 250 to300cm. In the Kiln there are three zones called the drying zone, the calcinating zone and the burning zone. Fuel used in the Kiln is burned to 1000c by an electric heater for better atomization. Air is sucked through the coolers provided around the Kiln by the fan, which drives the Flue gas through the chimney. There is a damper provided at the chimney for efficient operation and it controls the air inlet to the Kiln. The collected slurry is injected at the upper end of the Kiln. Hot gases or flames are forced through the lower end of the Kiln. The portion of the Kiln nearer to the upper end is known as the drying zone and at this zone; the water of he slurry is evaporated. The temperature of this zone is about 2200C. In the central part of the Kiln, where the temperature is around 7500C-9000C, the slurry undergoes decomposition to form quick lime and carbon dioxide and the latter escapes out. The materials form small lumps known as nodules. (Calcinating zone) In the lower part of the Kiln the temperature is between 1400 0Cto 15000C. Lime and clay undergoes chemical interaction and fuses, yielding calcium aluminates and silicates which then fuses together to form small hard dark greenish blue balls which are known as clinkers. The size of the clinker varies from 3mm to 20mm and they are very

30

Organisation study 2008

Travancore Cements Ltd. hot when they come out of the burning zone of the Kiln. Then, Diesel is applied through a nozzle to remove impurities on clinker and to give colours to it. Cracking takes place here. Fe2O4

Fe2O3 To prevent reverse reaction quenching is done. Oxygen released during the

cracking process reacts with hydrogen and becomes steam. There is a provision to cool down hot clinkers. The clinkers are passed through the coolers connected to the Kilns periphery. The air entering through the cooler exchange the heat and thus the clinker gets cooled and at the sane time air gets preheated. Cooled clinkers are having a temperature of 950C and are collected in containers of suitable size.

CHEMISTRY OF THE PROCESS In the upper part of the kiln, where the temperature is around 4000C, most of the slurry gets evaporated (Drying zone) In the central part of the kiln, where the temperature is around 10000C, slurry undergoes decomposition to form quick lime and carbon dioxide and the latter escapes out. CaCO3

CaO+CO2 In the lower part of the kiln the temperature is between 15000C to 17000C. Here

lime any clay nodules undergo chemical interaction or fusion, yielding calcium aluminates and silicates (clinkering zone). 2CaO+SiO2

Ca2SiO4

3CaO+SiO2

Ca3SiOS5

3CaO+Al2O3 4CaO+Al2O3+Fe2O3 4Ca0+Al2O3+Fe2O3

Dicalcium silicate Tricalcium Silicate

Ca3Al+2O6

Tricalcium aluminate

Ca3Al+2O6 Tricalcium aluminate Ca4Al2Fe2O10 Tricalcium Aluminoferrite

VIII. CLINKER GRINDING (CEMENT MILL) The clinker as obtained from rotary kiln is carried by conveyors into the cement mill. There are three cement mills A,B, C with clinker grinding capacity of 60 Tonnes ,50 Tonnes, 50 Tonnes respectively.. The mills B and C are identical in nature. During

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Organisation study 2008

Travancore Cements Ltd. grinding, small quantity of about3% to4% Gypsum is added. The Gypsum controls the initial setting time of cement. If Gypsum is not added, the cement would sit as water is added. The Gypsum acts as retarder and it delays the setting action of cement. It thus permits cement to be mixed with aggregates and to be placed in position. The cement coming out of the mill is conveyed to the claufies by means of bucket elevator. In the separator, coarse particles are separated and they flow to the mill while fine particles flow to the Flaxo pump, which is operated by compressed air. Using Flaxo pump cement is transferred to the cement Silo located at the packing house.

I. PACKING AND DISPATCHING The white cement stored in Silos is packed in paper bags in the packing house. Compressed air is used for the free flow of the cement from the Silo and hopper located above the packing machine. When the bag is filled with 50Kg material discharges from the spout is automatically transferred to truck through a fixed point belt conveyor and a movable belt conveyor. The filled bags fall down from the spout to the wire net conveyor and are transferred to truck through a fixed point belt conveyor and a movable belt conveyor.

CEMENT PAINT DEPARTMENT Paint is a surface coating which decorates and protects the surface on which it is applied. Paint is a mixture of four elements they are: 1. Solvents 2. Binders 3. Pigments 4. Additives The total paint market is broadly categorized into four segments. 1. Architectural finish or decorative paints 2. Industrial finish-general industrial sector automobile sector 3. Heavy duty coatings 4. Marine paints Decorative paints are the largest market segment and constitute around 75% of the market share. Super Shelcem is self curing cement paint manufactured by the TCL. It is an inmate mixture of white Portland cement, water proofing compounds as oxide extender, non fading oxide pigments hardening agent and fungicide. Super Shelcem

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Organisation study 2008

Travancore Cements Ltd. unlike other cement paints does not require water curing after first and second coats. Unlike other paints, metal primer is not required when using this paint. Only initial willing of the surface is necessary. This makes Super Shelcem ideal for exteriors of multi storied buildings and sky scrappers. For interiors too super Shelcem id ideal. It carries ISI marks and is available in a wide range of colours -43 shades to be precise.

PRODUCTION PROCESS Lime shell

Clay

Dredging

Clay unloading

Barger

Wash mill

Rotary filter

Clay silo

Sand silo

Clay pit

Raw mill Slurry pit Slurry silo Correction pit Slurry basin Slurry feeder Rotary kiln Hammer crusher Clinker silo Gypsum

Cement Mill

Fluxo pump

Cement Silo

White Cement

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Organisation study 2008

Travancore Cements Ltd.

PRODUCTION AND DESPATCH The shell production, clinker production, and cement production and cement despatch during the past three years were as follows:

Item

2006-2007 Mts

2005-2006 Mts

2004-2005 Mts

Shell

26750

12945

28670

Clinker

22528

11808

22901

White cement

21474

15134

23965

White cement dispatch

21425

15393

23821

RESPONSIBILITY OF KEY PERSONS GENERAL MANAGER OPERATIONS • • • •

Has overall control on production department Has to report to MD Verification of stock of raw materials Make arrangements for repairs & maintence by the respective department

CHIEF MANAGER • •

Maintain necessary stock of raw material Purchase machinery equipment & grinding media which may become necessary.

Jr. MANAGER JR. Manager has to assist chief manager

FUTURE PLAN OF PRODUCTION DEPARTMENT To change the production technology from WET process to DRY process.

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Organisation study 2008

Travancore Cements Ltd.

PERSONNEL DEPARTMENT STRUCTURE OF THE PERSONNEL DEPARTMENT

GENERAL MANAGER(O)

CHIEF MANAGER (Mktg&Per.)

DEPUTY MANAGER

Jr.MANAGER(IR)

Jr. MANAGER Per. In Charge

OFFICE ASSISTANTS

TYPIST

PEON

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Organisation study 2008

Travancore Cements Ltd.

FUNCTIONS OF PERSONNEL DEPARTMENT •

To maintain good relationship between the employees

•

To look into the welfare of the employees

•

To maintain leave register

•

Attendance making

•

Overtime confirmation It is the department that is connected to other departments in TCL. This

department is headed by Joint General Manager. Under him Joint Chief Manager followed by Junior Executive and Office Assistants. This department does the recruitment and selection of the personnel. Another important function of the personnel department is to look into the welfare of its employees. Time office comes under this department. The function of the time office is to maintain leave register, attendance making, over time confirmation etc. The above data is forwarded to the accounts department for accounting the wages of the employees.

The employees of the company are classified into Three categories. They are: 1. Officers. 2. Staff. 3. Workers. 1. OFFICERS The Officers of TCLl are further classified into five. They are: i)

General Manager grade.

ii)

Manager grade.

iii)

Special grade.

iv)

Class one grade.

v)

Class two grade.

2. STAFF

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Organisation study 2008

Travancore Cements Ltd. People working in the office, security and senior employee in the plant comes under the staff category. The grade of staffs varies from 1 to 7. 1 being the lowest grade ahend 7 being the highest grade. 3. WORKERS Workers in TCL are classified into i)

Permanent.

ii)

Probation.

iii)

Temporary.

iv)

Casual.

v)

Apprentice. The grades of workers vary from i) to v). i) being the lowest grade and v) being

the highest grade.

TIMING The office time is from 9:00am to 5:00pm on all working days from Monday to Friday. On Saturdays Office time is till 1:00pm and the factory is working on shift basis. 1) 3 continuous shifts of 5 hours each. 2) 2 special shifts of 8 hours each. 3) Special shifts for special work of 8 hours. 4) A general shift of 8 hours. There are 3 shifts in the factory. 1st shift: 12 midnight to 8.00 pm. 2nd shift: 8.00 am

to 4.00 pm

3rd shift: 4.00 pm

to 12 midnight

MANPOWER PLANNING Manpower planning is a key economic resource of an organisation. Manpower planning isw a kind of checking weather the people at the right place for things for which they are economically useful. It enables the management to adopt suitable strategies for each situation.

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Organisation study 2008

Travancore Cements Ltd. Improper manpower planning results in delays in executing new projects and expansion programmes. Manpower planning includes a series of activities consisting of the following: 1. Forecasting 2. Anticipating manpower requirements 3. Manpower audit 4. Planning Proper manpower planning is done at TCL to ensure the right number and proper utility of manpower

INDUSTRIAL RELATIONS TCL maintains a good working relation between management and employees. The work opportunities for the company personnel are developed and maintained in the best interest of the company and its employees.

WORK CULTURE Culture of a society or organisation comprises the core values, norms, beliefs and attributes that affect the behaviour of people. An organisation is a replica of a society. The culture of an organisation depends upon various policies and practices such as how work is organised and how people relate to each other within the organisation and outside it. TCL is maintaining a good and

harmonious relationship between

employees and customers.

RECRUITMENT AND SELECTION WORKERS The workers are selected through PSC test and physical test. Every worker is liable to be transferred from one department to another and one job to another according to the experience of work in the factory.

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Organisation study 2008

Travancore Cements Ltd. OFFICE STAFF Recruitment of office staff is done through direct application and through employment exchange. Selection is mainly based on written test and interview. But it is also done accordig to the discretion of management. Selected persons will have to undergo training, which is usually six months. MANAGERIAL LEVEL Recruitment for managerial level is done through direct application and through employment exchange. Selection is mainly based on written test and interview. Selected persons will have to undergo training for more than one year.

TRADE UNION The recognised trade unions in the company are : 1. The Travancore Cement Workers Union

AITUC

2. The Kerala Cement Labourers Union

CITU

3. The Kottayam Cement Employees Union

INTUC

4. The Kottayam Cement Employees Congress

WORKING CONDITIONS Proper working conditions are maintained in the company. Facilities like bathrooms, toilets are provided at all the plants and offices. Rest rooms and seating facilities are provided.

MEDICAL REIMBURSEMENT One month salary (Basic + D.A.) for officers and half month salary (Basic + D.A.) for staff workers who are out from ESI scheme.

COMPANY SCHOLARSHIP Company is providing scholarship to children of all the employees in the company.

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Organisation study 2008

Travancore Cements Ltd. For S.S.L.C, Plus Two, Degree and Diploma. Rs. 750/- for first rank. Rs. 500/- for second rank.

EDUCATIONAL ALLOWANCE The company provides this facility for the children of permanent employees. They are getting an amount of Rs. 300 a month.

SPECIAL ADVANCE For medical treatment [Upto a maximum of Rs. 15000] For marriage expense [upto a maximum of Rs. 25000] TWO WHEELER / CYCLE LOAN : To all employees CAR / COMPUTER LOAN : For officers only FACTORY DAY COMPLIMENT

: Every year

TRAINING AND DEVELOPMENT There are both internal and external training for workers and employees, and the HRD centre under the supervision of the personnel deparrtment, it is conducted. Job rotation is allowed only for officers. Conference talks, workshops etc. are conducted as a part of training and development.

PROMOTION Promotion from a lower grade to higher grade will be given in accordance with efficiency and seniority of the person, subject to the vacancy position.

WELFARE FACILITIES PROVIDED BY THE COMPANY There were several welfare measures provided by the company. Now TCL is running under huge loss. So the company is not able to provide the benefits to the employees as in the earlier years. They were provided with the following benefits: 1. Uniform

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Organisation study 2008

Travancore Cements Ltd. 2. Footwear allowance 3. Umbrella 4. Raincoat 5. Washing soap & toilet soap 6. Turkey towel 7. Two wheeler / Cycle loan 8. Car/ computer loan The benefits provided to the employees even the company is facing loss are: CANTEEN A fair price canteen is operating at the premises. The employees are given Rs. 25 per day of attendance as canteen allowance. Rs. 750 is the maximum allowance given per month.

DEATH BENEFIT Rs. 5000 will be given to the dependent of the deceased employee to meet the expenses in connection with funeral.

TRANSPORTATION Free transportation facility is provided to employees for coming and returning after duty and for their children and for attending education institutions in and around Kottayam.

COMPANY’S PRODUCT AT CONCESSIONAL RATE Super Shelcem paint are sold to employees at fatory gate price. QUARTER‘S FACILITY A limited number of employees are provided with quarter’s facility with free electicity and water. Very nominal rents are charged. RECREATION FACILITY Recreation facility for indoor games like shuttle, badminton, carroms etc. are provided. Reading room facility is also provided with newspaper and periodicals; television is also provided with cable faility.

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Organisation study 2008

Travancore Cements Ltd. WELFARE FUND SUBSCRIPTION The company has a welfare fund scheme under which an employee has to contribute Rs. 20 and the company contributes at the rate of Rs. 10 for each member per month.

TRAINING FACILITY FOR EMPLOYEES’ CHILDREN Employees’ childre with ITI / diploma / professional degree, are given training facility at free of cost. (as unpaid apprentice)

SALARY & WAGES Salary and wages, paid to the employees are determined on the basis of an agreement between CMI and Trade Union. In TCL, pay revision is done in every 4 years. The salary is fixed for officers & staff according to KSR rules. And the provision of Cement Manufacturers Association (CMA) determine workers’ wages.

SCALE OF PAY The Cement Manufacturers Association (CMA) determines the wages and salaries of all cement factoies in India. Since there is fixed pay structure for every grade of employees, management can develop a coordinated pay system without having to determine a separate pay rate for each job in the organisation. All the jobs within a grade have the same range of pay regardless of points.

HOUSE RENT ALLOWANCE The employees who are not provided with quarters are given allowances at 10% of their basic pay.

EMPLOYEE PROVIDENT FUND The company deducts 12 % of basic pay and dearness allowance of the employee as monthly contribution. The company also contributes an equal amount. FAMILY PENSION SCHEME

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Organisation study 2008

Travancore Cements Ltd. A portion of the provident fund is reserved for the family pension scheme. This is kept for giving to the employees after their retirement on monthly basis. ESI The employees having basic pay below Rs. 7500 are able to get the benefit of ESI. GRATUITY Gratuity is also given to the employees. And it is calculated as: Gratuity = (BP + DA) * 15/26 * total years of service LEAVE PATTERN

Staff & manager Wo r k e r s

Prelivage

Sick

Casual

30 16

12 12

14 8

PROVISIONS REGARDING HEALTH OF THE EMPLOYEES a. Cleanliness is maintained. b. Wastes and effluents are disposed properly. c. Proper ventilation and temperature is maintained. d. Masks are provided for protection against dust. e. Cold water facilities are provided. f. Proper lighting is maintained.

PERSONNEL RECORDS TCL keeps records about each and every employee, from the date of joining till his separation from the company. It also includes details of salaries or wages,transfers and other details related to the job.

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Organisation study 2008

Travancore Cements Ltd.

RESPONSIBILITIES OF KEY PERSONS IN PERSONNEL DEPARTMENT GENERAL MANAGER(O) General Manager(O) has an overall control in Personnel Department. CHIEF MANAGER(MKTG &PERSONNEL) Chief Manager (Mktg&personnel) is the signing authority in personnel department. DEPUTY MANAGER Deputy manager is responsible for the preparation &verification of documents forwared to chief manager Jr. MANAGER(IR) Jr. Manager (IR) has the control of human resources section. Jr. MANAGER (PERSONNEL IN CHARGE) Jr. Manager (Personnel In Charge) has to prepare letters relating to the Personnel Department. Jr. M has also the responsibility relating Employees’ Welfare Fund activities.

FUTURE PLAN OF PERSONNEL DEPARTMENT Conduct SWOT analysis of each employee and the company and to assign the responsibility which is suited to each employee

LIST OF APPRENTICES

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Organisation study 2008

Travancore Cements Ltd. Type of Apprenticeship I

Graduate Apprentice (Engineering degree) 1. Electrical Engineering 2. Mechanical Engineering 3. Chemical Engineering

II

Technical Apprentice (Engineering Diploma) 1. Automobile 2. Mechanical 3. Chemical 4. Civil 5. Electrical 6. Commercial Practice Trade Apprentice 1. Electrician

III

2. Fitter 3. Welder 4. Turner 5. Mechanic Motor Vehicle 6. Carpenter 7. Forger & Head treater 8. Plumber 9. Mechanic Diesel

ALLOWANCE S TO EMPLOYEE S

GRADE

DA%

TA

HRA

EA

CA

LTA

PA

E

Nil

30

125

300

515

400

50

D

2½

30

125

300

515

400

50

C

5

33

125

300

515

400

50

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Organisation study 2008

Travancore Cements Ltd. B

5

33

135

300

515

400

50

A

5

36

135

300

515

400

50

I

5

30

125

300

515

400

50

II

5

33

125

300

515

400

50

III

5

33

135

300

515

400

50

IV

5

36

135

300

515

400

50

V

5

36

145

300

515

400

50

VI

5

38

145

300

515

400

50

VII

5

38

150

300

515

400

50

DA—Dearness Allowance TA — Tr a v e l i n g A l l o w a n c e HRA—House rent Allowance E A — E d u c a t i o n A l l o w a n c e ( 11 0 + 1 9 0 = 3 0 0 / m o n t h ) CA—Conveyance Allowance (450 + 100 + 125 = 575/ month) LTA — L e a v e Tr a v e l A l l o w a n c e ( 2 0 5 + 1 3 5 = 4 0 0 / m o n t h ) PA — P e r i o d i c a l A l l o w a n c e

EMPLOYEES’ STRENGTH OF TCL AS ON 01.01.2008 SLNO

NAME

1 2 3 4 5

D E PA RT M E N T Dredeger Wa t e r t r a n s p o r t Running plant Packing house Wo r k s h o p

OF

46

S TA F F

O P E R AT I V E S

10 3 15 6 15

71 22 47 13 64

Organisation study 2008

Travancore Cements Ltd. 6 7 8 9 10 11 12 13 14 15 16 17 18

Office Marketing & sales Lab General stores Ti m e o f f i c e Civil Engg Electrical Engg General transport Wa t c h & w a r d Camp & sanitation Cement paint units Medcial Aid Material handling T O TA L

To t a l s t a f f

167

To t a l o p e r a t i v e s

312

Officers

47 19 3 3 6 1 8 15

11 5 15 4 17 6 11

3 9 1 3 167

26 312

26

G R A N D T O TA L

505

FINANCE DEPARTMENT S T R U C T U R E O F T H E F I N A N C E D E PA RT M E N T

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Organisation study 2008

Travancore Cements Ltd.

GENERAL MANAGER(F)

CHIEF MANAGER

ASSISTANT MANAGER

Jr.MANAGER

ASSISTANT SUPERIENDENT

OFFICE ASSISTANT

FUNCTIONS OF FINANCE DEPARTMENT  Financial forecasting and planning  Acquisition of funds  Investment of funds  Maintaining proper liquidity

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Organisation study 2008

Travancore Cements Ltd.  Assigning the Chief Accounts officer and others  Accounting of all receipts and payments, cash at bank, sales etc.  Preparation of annual accounts and other periodical report and statements  Checking of wages and salaries  Regular payments of statutory dues like Provident Fund, Sales tax etc.  Furnishing necessary records relating to finance cash to Managing Director or Chief Accounts Officer.

Financial Management is that specialised functions of general management which is related to the procurement of finance and its effective initialisation for the achievement of common goal of the organisation. It deals with each and every aspect of financial activity in the business. It includes planning and control of financial resources. It is also concerned with finding out various sources for raising capital for the firm. The source must be suitable and economical for the needs of the business. The most appropriate use of such funds also form a part of Financial Management. Finance is indispensable to facilitate efficient and effective operation of business enterprise. In this context, effective financial management holds key to success in todays highly competitive world, modern financial managers are assigned five roles: 1. Planning of funds 2. Raising of funds 3. Allocation of funds 4. Allocation of earnings 5. Control of funds The finance department consists of Chief Manager, Junior manager and Office Assistants. The accounts of Tcl are controlled through the budget presented and passed by the Annual General Meeting of the TCL. There are mainly three sectors of finance department of TCL. They are 1. Accounts Section 2. Finance Section 3. Cash Section

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Organisation study 2008

Travancore Cements Ltd. 1. ACCOUNTS SECTION

The most important task done by accounts section is the recording of day to day accounts. Routine accounting functions like sales tax payment, receipts and payment of cash, cheques etc. come under the preview of the accounts section.The employee payroll function is also undertaken by the accounts section of the finance department. It is the duty of this department to prepare Trial Balance, Profit & Loss A/c and Balance Sheet and send it to the top level authorities for audit and for other decision making purpose.

2. FINANCE SECTION

Finance section is mainly concerned with the maintenance of accounts. The various financial statements are kept in the computer as well as in the manual form. 3. CASH SECTION

The cash section is concerned with the disbursement of cash.

DUTIES OF FINANCE DEPARTMENT i.

Overall financial control

ii.

Monitory decision amking in consultation with Managing director

iii.

Finalization of accounts

iv.

Budget preparation

v.

Control overall matters relating finance in the organisation The accounts and finance departments have to ensure that the salaries due to

the employees are paid in time. The department is also concerned with the preparation of budget and budgetory controlof the concern. The department has to ensure that all the entries are properly posted in the books of accounts. The main accounts that are kept by the accounts department: i.

Cash book

ii.

General ledger

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Organisation study 2008

Travancore Cements Ltd.

SCOPE OF FINANCIAL MANAGEMENT It can be summarised as follows: a) ESTIMATING FINANCIAL REQUIREMENTS The first task of a Finance Manager is to estimate short term and long term financial requirements of his business. For this purpose, he will prepare a financial plan for the present as well as for the future.The amount required for purchasing fixed assets as well as needs of funds for working capital have to be ascertained. The estimations should be based on sound financial principles so that neither there are inadequate nor excess funds with the concern. The inadequacy of funds will adversely affect the day to day working of the concern whereas excess funds may tempt the management to indulge in extravagant spending for speculative activities. b) DECIDING CAPITAL STRUCTURE

Capital Structure refers to the kind and proportion of different securities for raising of funds. After deciding about the quantum of funds required, it should be decided which type of securities should be raised. It may be to arise finance through long term debts Even here if gestation period is longer, the share capital may be most suitable. Long term funds should be employed to finance working capital. Entirely depending upon over drafts and cash credits for meeting working capital needs may not be suitable. A decision about various sources of fund should be linked to the cost of raising funds. If cost of raising funds is very high, then such sources may not be useful for long. A decision about the kind of securities to be employed and then proportion in which these should be used is an important decision which influence the short term and long term financial planning of the enterprise. c) SELECTING A SOURCE OF FINANCE

After preparing a capital structure, an appropriate source fo finance is selected. Various souces from which finance may be raised include share capital, debentures, financial institutions, commercial banks, public deposits etc. If finances are needed for shorter period, then banks, public deposits and financial institutions may be appropriate, on the other hand, if long term finances are required, then share capital and debentures may be useful. If the concern doesn’t want to tie down assets as securities, then public deposits may be the suitable source. If the management doesn’t want to dilute ownership, the

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Organisation study 2008

Travancore Cements Ltd. debentures should be issued in prefernce to shares. The need, purpose, object and cost involved, may be the factors influencing the selection of a suitable source of financing. d) SELECTING A PATTERN OF INVESTMENT

When funds have been purchased, then decision about investment pattern is to be taken. The selection of an investment pattern is related to use of funds. The funds with have to be spent first on fixed assets and then an appropriate portion will be retained for working capital. While selecting a plant & machinery, even different categories of them may be available. . the decision making techniques such as capital budgeting, opportunity cost analysis etc. may be applied in making decision about capital expenditures.While spending on various assets, the principles of safety, profitability and liquidity should not be ignored. A balance should be struck even in these principles. One may not like to invest on a project, which may be risky, even though there may be more profits. e) PROPER CASH MANAGEMENT

Cash management is aso an important task of finance manager. He has to assess various needs of the company at different times. He has to make arrangements for cash. Cash may be required a) to purchase raw material b) to make payment to creditors c) to meet wage bills d) to meet day to day expenses. The usual source of cash may be a) cash sales b) collection of debts c) short term arrangement with banks etc. The cash management should be such that neither there is a shortage of it nor it is idle. Any shortage of cash will damage the creditworthiness of the enterprise. The idle cash with the business will mean that it is not properly used. Cash flow statement is regularly prepared so that one is able to find out various sources and applications. All these information will help in efficient management of cash.

ACCOUNTING POLICIES The accounts of TCL are prepared in accordance with the accounting policies accepted in India and in line with the relevant laws as well as the guidelines prescribed by the Department of Company Affairs and The Institute of Chartered Accountants of India and in accordance with section 211 (3c) of the Companies Act 1956.

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SYSTEM OF ACCOUNTING The company adopts the accrual basis in the preparation of accounts.

ii

FIXED ASSETS Fixed assets are capitalized at cost inclusive of expenses. Depreciation is provided

on all fixed assets except machinery for

erection and free hold land, on reducing

balance method (written down value) in terms of sec. 350 of Companies Act, 1956 at the rates prescribed under schedule XIV of the said Act.

iii INVENTORIES Raw materials, stores and spares and work in progress are valued at cost. Finished goods have been valued at cost or

market price whichever is less and doesn’t include

excise duty, except in case of stock at depots. iv SALES

Sales are inclusive of excise duty and sales tax. Sales include the value of white cement transferred for the manufacturing of cement paint.

v

RETIREMENT BENEFITS

Gratuity, leave encashment, provident fund are the benefits provided in the company.

CAPITAL STRUCTURE No long term loan was availed by the company and hence the debt equity ratio is nil.

RESERVES AND SURPLUS The company is operating on the previous years’ surplus amount.

RESPONSIBILITIES OF KEY PERSONS IN FINANCE DEPARTMENT

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Travancore Cements Ltd. GENERAL MANAGER(F) General manager(F) has control on overall financial matters. He has to control expenditure. GM has to arrange the sources of finance and its proper distribution. General Manager is the displinary authority of all the staff working under him. CHIEF MANAGER Chief Manager controls day to day affairs in connection with finance and accounts. CM has to distribute the duties among the staff under him. ASSISTANT MANAGER Assistant Manager has to assist Chief Manager. Assistant Manager has to control daily receipts and payments. AM has to attend all the papers submitted to him by the subordinates who are directed to report. Jr. MANAGER Jr. Manager has to prepare all statements like budget, balance sheet, profit & loss A/c, cost data. Jr. M has to attend all the papers submitted to him by the subordinates who are directed to report.

FUTURE PLAN OF FINANCE DEPARTMENT This department is planning to have full computerization.

MARKETING DEPARTMENT

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Travancore Cements Ltd. STRUCTURE OF MARKETING DEPARTMENT GENERAL MANAGER(O)

CHIEF MANAGER(MNP)

SENIOR MANAGER(Mkt)

Jr.MANAGER (Sales)

Jr.MANAGER (Mktg &Sales)

REPRESENTATIVES

FUNCTIONS OF MARKETING DEPARTMENT •

To identify the needs and wants of the consumers

•

To meet the demand of the consumers

•

Developing new better product

•

Successful distribution of the products

•

Improving the quality of products or services

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INTRODUCTION Marketing as a field of study has become almost as broad as business itself. In the early days marketing concepts was considered important for consumer products but recently the trends have changed. Today marketing is an important part of any industry. Marketing is defined as the process of identifying the needs and wants of consumer and producing goods and services to satisfy their needs and wants.

MARKETING DISTRIBUTION CHANNELS Company

Depots

Stockists

Dealers

Customers

NUMBER OF STOCKISTS There are 40 stokist to supply the products in credit .

MARKETING ACTIVITIES TCL has a well established marketing department. There is an efficient salesforce which is under the Marketing Manager. The whole system comes under the General Manager. TCL has got 14 sales representatives throughout Kerala.

PRODUCTS The company is producing four products. Two products were launched in the year 2000 and has got good marketing share. 1. Vembanad White Cement 2. Super Shelcem Cement Paint 3. Vembanad wall putty The first two products are established and they have good demand in the market. Vembanad White Cement has 40% market share and Super Shelcem Cement Paint has 30% market share in Kerala market. Vembanad White Cement has also market in Tamil Nadu. Sales representatives go around the state for collecting the order other than the networks. TCL supply its products to various government agencies like PWD, FACT, public sector companies etc. at special rates.

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PRICING OF THE PRODUCT Item Vembanad White cement (Kerala) Vembanad White cement (Outside Kerala) Vembanad White cement Vembanad White cement Super shelcem cement paint Super shelcem cement paint Super shelcem cement paint Super shelcem cement paint Vembanad wall putty Vembanad wall putty

Qty(kg) 50 50 5 1 1 3 5 25 5 20

Price 866.75 797.00 118.50 24.10 34.40 101.50 169.30 819.60 180 619

REASONS FOR HIGH PRICE The production process of TCL is very old and it is known as WET process and is very expensive. This is the only company which is using this old process. The other companies are using DRY process. This is comparatively less expensive. So the other companies can reduce price. Another reason is the raw materials particularly lime shell and white clay is scarce. So these products are priced very high.

ANALYSIS OF ENVIRONMENT Marketing environment is constantly presenting new threats and opportunities and successful companies continuously monitor and adapt to that environment. TCL is facing various threats like increased energy cost, pollution, changing role of Government etc.

RESEARCH & DEVELOPMENT The company for improving the quality of product takes up much research. The company doesn’t need many strategies to study in the market as its product is of great demand and the company has a good percentage of market shares. It is the responsibility of the marketing to conduct various programmers to improve the user’s awareness about the company’s product.  To conduct study classes for workers and users  To organize exhibitions  To conduct educational tour

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MARKETING RESEARCH TCL is not conducting any marketing research. Using project students, company gets feedback from the customers. Thus necessary steps are taken to cure the complaints.

SEGMENTING, TARGETING & POSITIONING TCL identified the segments for the white cements as cement paint manufacturing, Tile manufacturing, Manufacturers of Terrazzo flooring, Mosaic Tiles, Primer coat, PWD for road making, pointing brick works. The target customers of Vembanad White Cement are tile manufacturers. The main customers Scorpio tiles Manufacturers, Melathil Tile manufacturers, Ultra tile manufacturers. Even though the tile manufacturers are the target customers, Vembanad white cement is consumed mostly by TCL itself for the production of cement paint. Positioning the act of designing the company’s offering and image to occupy a distinctive place in the mind of the target market, is done by Vembanad White Cement as a quality product.

MARKETING CHANNELS AND PRACTICES WHITE CEMENT TCL has got six sales representatives throughout Kerala. TCL is having sales officers and godowns at Bangalore, Coimbatotre, Calcutta and Delhi. Transport is through trucks and railway wagons to distant places. Regional office is situated at Trivandrum. MARKET SHARE Today out of the total production of white cement in India, the market share of TCL is 40% in Kerala .

SUPER SHELCEM PAINT

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Travancore Cements Ltd. Shelcem paints are marketed in powder form. The sales representatives take orders from the dealers and the company supplies it directly to the stockists of that respective area, who in turn supplies it to the dealer.

MARKET SHARE

Cement paint market is classified into two sectors such as organised and unorganised sectors. The total market share of organised and unorganised sector is 15%. In the unorganised sector, Super Shelcem is the market leader.

SALES PROMOTION TCL has an advertisement budget of Rs. 50 lakhs per annum. Since the amount is too small, the company is advertising at a low level. Other promotional activities include, conducting dealers’ meeting once in two years. In addition to these, the company offers various incentive schemes for its dealers according to their sales performance. Due to the very low advertisement budget, company doesn’t engage in any large scale type of advertisement activities. The company occassionally engages in advertisement through newspapers, magazines etc.The main modes of advertisement are display boards, that are positioned where they get maximum attention.They also used Asianet Cable Vision, wall painting etc.

COMPETITIONS The company is facing tough competition from the white cement from internal manufacturers and also from imported white cement. JK White, Birla, RKC etc. are the major competitors in the white cement sector. In the cement paint sector, there are about 14 brands to compete with Super Shelcem. The major competitors are Durocem, Snowcem etc. The companies new product Sheltex Acrylic Emulsion Paint has only 5% market share and facing competition from majors like Apex, Excel etc.

CONDITIONS OF SALES

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Travancore Cements Ltd.  The sale is at the ex-factory Kottayam. The company is not responsible for any levies  Every care is taken in packing and their responsibility ceases once the company sells it.  Goods once sold and dispatched will not be taken back.  All disputes under the invoice will be settled in court having jurisdiction at Kottayam.  Buyer man in sure the goods at their own risk account against transmit risk.

RESPONSIBILITIES OF KEY PERSONS IN MARKETING DEPARTMENT GENERAL MANAGER(O) General manager(O) has overall control of marketing of all products. GM has to suggest proposal of policy decision regarding marketing. SENIOR MANAGER Senior manager has the administration work of marketing. SM has to supervise junior manager and the representatives at field. SM has the responsibility to look into statutory matters regarding marketing. SM has to initate proposals regarding advertising, sales promotion, appointment of workers.

FUTURE PLANS OF MARKETING DEPARTMENT The future plan of this department is to establish the product wall putty

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PURCHASE DEPARTMENT STRUCTURE OF THE PURCHASE DEPARTMENT

GENERAL MANAGER (O)

CHIEF MANAGER

Jr. MANAGER

Jr. EXECUTIVE MANAGER

OFFICE ASSISTANTS

FUNCTIONS OF PURCHASE DEPARTMENT  To determine the type of raw materials to purchase  To purchase good quality raw materials  To purchase raw materials at low cost  To formulate purchasing policies Purchase department is the department which decides the type of raw materials to purchase. Highly paid officials with specialised knowledge are included in this department.

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ADVANTAGES OF PURCHASE DEPARTMENT IN TCL 1. Because of centralized purchasing of materials, favourable terms like trade discount or economic in transportation cost can be obtained, because quantity will be large. 2. The purchase department is staffed with highly paid officials who are experts in the art of purchasing the material. Specialized knowledge and skill of these persons can be utilized. 3. All records with regard to purchase department is kept under the supervision of the purchase officer. 4. This department helps in achieving uniform purchasing policies, practices and procedures. 5. It avoids duplication of efforts and is helpful in achieving standardized products. VENDOR SELECTION The TCL has a main list of suppliers for all items it have to purchase. The company invites tenders through advertisements in the newspapers.The suppliers give quotations and after a detailed study of the concerned department, the supplier should be selected and the order is placing.

VENDOR RATING A vendor is rated according to his monopoly in the market, brand equity of the products, his established dealings with other reputed organizations. There is a vendor evaluation committee which evaluates the vendors. The committee consists of officers from concerning finance and material departments. Vendor who is rated below 50% will be removed from the lists. Vendors rated between 50% & 75% are advised to improve their quality.

VENDOR RE-EVALUATION RATING The suppliers of raw material who are re-evaluated periodically by the company.

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Travancore Cements Ltd. i Vendor supplying all raw materials for white cement and cement paint. ii

Packing material

iii Critical spares and machinery Vendor rating is done by the composite weighted average calculated by the following formula: R = A + B; where A is quality rating ”

B is delivery rating

FUNCTIONS OF PURCHASE DEPARTMENT IN TCL  Placing order  Inviting quotations  Correspondents To perform the functions effectively, the purchasing department has to follow the following procedure.

a. PURCHASE REQUISITIONS

The purchase officer does not initiate any action for purchasing of materials on his own record. With the help of purchase requisitions, the purchase officer come to know the types of materials needed by the organisation. A purchase requisition is a from used as a formal request for the purchasing department to purchase materials. b. EXPLORING THE SOURCES OF SUPPLY & SELECTING THE SUPPLIER

A source of supply of materials is to be selected after the receipt of purchase requisition. In TCL, the process of choosing the supplier is not a hard task. The store keeper generally mentions the name of current suppliers, their price quotations and the purchase department also has a series of good suppliers. Choosing the right supplier from the suppliers list involves a process of comparitive statement of purchases. It is a statement prepared by the purchase department. c. PURCHASING ORDER After choosing the supplier, the purchase department prepares the order for the supply of stores. The order is a written authorisation to the supplier to supply the

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Travancore Cements Ltd. particular material or materials. It is the evidence between the buyer and the supplier having the terms and conditions of the purchasing order. d. RECIEVING & INSPECTING MATERIALS In large concerns, a separate receipt & inspection department independent of stocking location should be set up to receive and inspect the materials. But in small concerns, the work is done by the store keeper. In TCL, the stores department makes the general purchase only. When goods are received in stores, the consuming department is informed and the personnels from this department come to stores and inspect the quality, quantity etc. e. CHECKING & PASSING BILLS OF EXCHANGES After checking, the bills are passed. Generally, the payment terms of TCL are 

Against invoice or acceptance of stock a minimum 15 days credit



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

CONDITIONS REGARDING RECEIPT OF GOODS  If the suppliers are within Kerala, a time within 15 days of sending or inviting quotations  If the suppliers are outside Kerala, a period within 20 or 30 days  The company makes a local purchase itself within 2 or 3 days.

PURCHASE LIMITS In TCL, they followed an authorised purchasing system. The purchase units are as follows: 1. Below and upto Rs.25000, purchases are maintained by Deputy Manager and sanctioned by General Manager(O) 2. Rs.25000 – Rs.1000000, purchases are maintained by Chief Manager should sanctioned by General Manager 3. Rs. 1000000 – Rs.5700000, it should be signed and approved General Manager(O) 4. Rs.5000000 and above, approved by Managing director

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OTHER DEPARTMENTS STORES DEPARTMENT Purchase Manager

Store keeper

Assistant store keeper

Helper

Sweeper

FUNCTIONS STORES DEPARTMENT  To store the raw materials for different departments  To prepare the purchase order  To prepare the stores records such as Bin card and Karade - X card Stores is the department for storing the raw materials. The materials are collected as per the order made by the department, which is known as purchase order.

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LOCATION & LAYOUT The location of stores department should be carefully planned out and it should be near to the receiving department, so that transportation cost should be minimum.The department is a centralized storage system in the company. The raw materials for different departments are stored in the stores.

ADVANTAGES OF CENTRALIZED STORES IN TCL 1. Better control can be exercised over stores because all stores are housed in one department. 2. Better layout of stores is possible. 3. Investment in stock is minimised. 4. Economy in cost. 5. Economy in staff and concentration of experts in one department will lead to development in high technical skills. 6. Less botherisation in inventory checking as all the stores are located in one place.

STORES RECORDS The Bin card and Karade – X card are the two important stock records that are kept in TCL for making a record of various stores.

BIN CARD A bin card makes a record of the receipts and issue of materials and is kept for each item in the stores. Quantity of materials received are entered in the receipt column and the quantity of stocks issued are recorded in the issue column of the bin card and the balance of the quantity of stock is taken after every receipt or issue , so that the balance can be seen readily at any time. A bin card is usually hanged up or placed in shelf, rack or bin where the materials have been kept.

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KARADE X - CARD This card is used in TCL by store keeper in addition to the bin card for storing the list of stock of items. TCL doesn’t maintain a stores ledger now, instead of this all the details are stored using software in the computer. The existing system is a Foxpro based system.

PURCHASE ORDER To make a purchase order for the General Stores department, it requires the following process: 1. GENERATION OF SPI The purchase requisition for the General Sotres department is generated through Store Purchase Indent. It is used for informing the purchase department, where the materials are stored and what is the price, and a general awareness about how it is previously dealt. Demanded items, ordered from consumer section and Replenishable items, ordered from the General Stores departmet itself are the two types of items stored here. Demanded items which are highly expensive are ordered as per the order of the consumer. Replenishable items are highly consumable items, so the consumers would not demand it always, so it is ordered from the General Stores departmet itself. 2. ISSUE OF MRI Material Received Intimation is used for intimating whether the materials are received or not and also for certifying the quality of materials. 3. ISSUE OF MRR Material Received Report is used for recording the details about the received materials, about its quality and quantity. 4. STOCKING OF MATERIALS Materials should be properly stacked and it should be kept according to its code number, shelf number and godown.

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5. ACCOUNTING & DELIVERY OF MATERIALS The payment of the materials can be made in cash or cheque. The materials should be accounted accordingly. Certain items will be delivered in advance or at the time of payment or after 15 or 30 days.

MAINTENANCE DEPARTMENT General Manager

Chief Manager ( P&A)

Chief Manager

Chief Manager

(M&E)

(Finance)

Deputy Manager (Electrical Engineer) Foreman

Chargehands

Electrician Electrical section & Mechanical section are the two sections included in the Maintenance department.

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FUNCTIONS OF MAINTENANCE DEPARTMENT  Operation of electrical equipments & machineries  Maintenance of electrical equipments & machineries

Maintenance of equipments

Annual maintenance

Preventive maintenance

Half yearly maintenance

Quarterly maintenance

Monthly maintenance

Fortnightly maintenance

Weekly maintenance

Daily maintenance

Hourly monitoring

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PURPOSE a. To ensure smooth and safe running of the electrical machinery. b. To provide safe and trouble free operation without risk to health of workers.

SCOPE It covers all electrical machinery and equipments connected in HT & LT side of transformers at Nattakom.

ELECTRICAL SECTION The total number of employees working in the electrical maintenance section is 24, out of which 12 employees are concerned with the electrical maintenance of the plant and other 12 undertake the maintenance work of the power plant. The company has its own substation for power supply. In order to ensure the safe and smooth operation of electrical machinery and equipments, a five tier system of electrical maintenance is practiced here. 1.

DAILY INSPECTION AND CHECKING Heavy electrical machineries like transformers, mill motors, compressor

motors etc. are checked by Chief

Electrician, on a daily basis before it starts

functioning. If any minor fault will find out, it may be attended by himself. Otherwise it would be informed to the electrical department. 2. PERIODICAL INSPECTION AND CHECKING All the electrical equipments and machineries are periodically checked by Electrical section inorder to ensure the safety of workers and also for the smooth functioning of the department.

3. BREAKDOWN MAINTENANCE

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Travancore Cements Ltd. In case of any breakdown of the machineries in the production department, information regarding the breakdown is given to the maintenance department, and subsequently maintenance workers are sent to production department to solve the machine failure.

4. PREVENTIVE MAINTENANCE Under this activity, a team of maintenance workers is sent directly to the production plant to find out whether there is any failure in the machinery or not. 5. SHUT DOWN MAINTENANCE When the plant is shut down due to the failure, the employees in the production department sent a letter to the maintenance department to solve the problem.

MECHANICAL SECTION All mechanical works are undertaken by the mechanical section of the maintenance department. The company has a workshop under the control of this department. There are nine subdivisions for the mechanical section. They are: 

Fitter



Automobile section



Diesel mechanic section



Welder



Turner



Blacksmith



Carpenter



Khalasis



Tool section The total number of workers in the mechanical section is 72 out of which 4 are

chargehands, a foreman and an attender. The rest include the officers and other skilled workers.

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LAB Junior Manager (Quality control)

Junior Manager ( Lathe)

Junior Executives ( Lathe)

Assistant Chemist

Chief Gauger

Tester

Sample boy Helpers

FUNCTIONS OF LAB  To test the quality of raw materials  To whether the product involves the right proportion of raw materials  To maintain the quality of the products Unlike other government organisations, where quality is secondary, at TCL quality is being given the prime position. The ISO 9002 certification is a proof for

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Travancore Cements Ltd. enduring the quality commitment of TCL. TCL has its own laboratory which continuously striving to maintain the quality of the products. There are three levels of testing conducted in the laboratory. They are: a. RAW MATERIAL TESTING Raw materials are tested for ensuring the quality of products even before manufacturing.

b. PROCESS TESTING Process testing is done before the grinding of lime shell, sand and clay. c. INTERMEDIATE TESTING In this testing, slurry is tested for finding out whether it contains right proportion of lime shell, sand and clay. Then slurry is taken to kiln for burning.

TRANSPORTATION DEPARTMENT Chief Manager (M&E)

Deputy Manager (Stores)

Transport Suprend

Charge hand

Fitter

Barge crew

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WATER TRANSPORT DEPARTMENT

FUNCTIONS OF THE DEPARTMENT  Lime shell dredging  Transportation of lime shell Mainly water transportation facilities are used for bringing limeshell from Vembanadu lake. The company has two dredgers of which one is hydraulic and the other is mechanical. Dredger is used for cutting and sucking limeshell from the river bed. There are 6 bargers and the capacity of each barger is 70 tonnes approximately. The bargers are used for transporting lime shell from Vembanadu lake to the unloading station. There are four workers in a dredger, foreman, chargehand and two operators. The capacity of two dredgers is 3 tonnes per hour. The cutter of dredger is about 10m in length. There are six workers in a barger. The capacity of a wooden barger is 70 tonnes.

GENERAL TRANSPORT DEPARTMENT Free transportation facilities are given to the staff to come to the office. For the purpose the company has two buses of their own. It is available to workers in all shift.

WORKSHOP

Officer Foreman Chargehand

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FUNCTIONS  Maintenance of machinery parts  Repairing of spare parts, pipe line, oil line, vehicles etc. The company has one workshop under the control of the mechanical maintenance department. The maintenance and repairing of machinery spare parts, pipe line, oil line, vehicle etc. are undertaken in the workshop. Fitter, Automobile section, Diesel mechanic section, Welder, Turner, Blacksmith, Carpenter, Khalasis, Tool section are the nine different sections in the mechanical maintenance department. The repairing of machinery spare parts, pipe line, oil line etc. and the machineries related with plant are undertaken in the workshop. Dredger and barger is also repaired here in this department. If any fault occurs in the running plant, workers from this department will be sent there. There are 80 employees working in different sections of the workshop as welders, fitters, blaksmith, carpenter etc.

PACKING HOUSE Packing house in charge Assistant in charge Supervisor Fitter Packer Helpers

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

DREDGING DEPARTMENT The main raw material for the production of Vembanadu White Cement is limeshell an under water deposit in Vembanadu lake, is dredged and brought to the company by means of power bargers. The company has two dredgers, one hydraulic dredger named Lokanathan of 5000 gallion capacity and one mechanical dredger, Rudger of 2000 gallions capacity. The dredger can cut the limeshell around 40 ft. maximum depth. The dredger works on two powerful engines, a dredger pamper engine and an auxilliary engine.

TIME OFFICE Time Office comes under the personnel department. The main function of the office is to maintain attendance register and calculate the monthly working hours of each employee. The company follows punch card system for measuring attendance.

CAMP & SANITATION DEPARTMENT This department is concerned about the cleanliness and neatness maintained at the premises of the company.

SECURITY DEPARTMENT The department is mainly concerned with the security and control of the company. There are 28 employees working in the security department on shift basis.

MEDICAL DEPARTMENT This department provides medical aid to both permanent and temporary employees. The medical leave of the employees is recorded and sactioned from this department.

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CHAPTER 5 SWOT ANALYSIS

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SWOT ANALYSIS STRENGTHS As TCL is a government owned firm, it enjoys privileges granted by the government. Standard quality products are produced here.TCL is the only white cement manufacturer in the world to manufacture cement from natural lime shell, and it uses wet process technology for cement production.Therefore the product maintains high quality.  Only company which uses the natural lime shell for manufacturing white cement  Standard quality products  Good training system  Good organisational climate  TCL is a government owned firm, it enjoys privileges granted by the government  Brand image

WEAKNESS Very low budget for advertisement, influence from government and political parties, sales representatives are less, surplus labour, lack of transportation facility,scarcity of main raw material lime shell etc. can be traced as the weakness of the company.  Company is running on loss  Poor advertisement  Sales representatives are less  No credit facility  Dealers dissatisfied with credit facility

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Travancore Cements Ltd.  There is no proper mechanism to handle customer grievances  Influence from government and political parties  High price compared to other brands

OPPORTUNITY The company should opt for psycho graphic segmentation of the market, where more stress should be given to the quality and fitness of the product. It should expand the distribution network to those markets where the competitors are less powerful. It can compete in the national market supported by good advertisement.  Compete in the national market if there is good advertisement  Liberalisation demand for cement paint  Company introduces promotional programmes

THREATS  High competition  Liberal policy of other brands  Promotional programmes of other brands  Complicated national market  Good replacement of other brands  Increasing oil price

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CHAPTER 6 OBSERVATION/SUGGESTIONS

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OBSERVATIONS/SUGGESTIONS  Replace the production technology with DRY process where the cost of production is less.  The company is working with more employees than required is happened due to political pressure. Hence the company has to work independent of political influence.  Employees has the fear that the Company may be winded up due to loss and are favoring privatization of the Company to save the Company from winding up  The Company has to expand its business outside Kerala where there is less competition.  The company should advertise its product so that more people may know about the products  The company should plan to have market network in rural areas of Kerala which are not covered under the market network of TCL

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Chapter 7 Conclusion

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CONCLUSION TCL Kottayam is one of the pioneers in the white cement industry. TCL is an ISO 9002 certified company, which was certified by Bureau of Indian Standards (BIS). This shows company’s consciousness towards high quality production. But the company is making a recovery from this by the utilisation of better opportunities and making further diversifications. The company is earning profit by the last three months as it got a fund of 2 crores as government aid. And the cost of the furnace oil, which is used for the WET technology is decreased and the company has sufficient raw materials now. The study provided useful insights into the company and its functioning. It is worth that the company has done a great task in the provision of cement products to cater the needs of construction in a big way. TCL happens to be the only manufacturer of

white cement with limeshell as its main raw material. With the

implementation of a new technology, improving the marketing strategies, and solving the existing problems, the company is ensured of bright prospects.

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BILIOGRAPHY  Mamoria C. B., Personnel Management, Himalaya publishing.  Kothari C.R., Research Methodology, New Age Information (P) Limited.  Dr. Gupta C. B., Human Resource Development, Sultan Chand and sons.  Kotler Philip, Marketing Management, Pearson Education.  Dr. Mahasweri S.N., Pandey I..M., Principles of Management Accounting,  Dr. Prasad L. M., Principles and Practice of Management, Sultan Chand and sons.

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