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REPORT ON ORGANIZATIONAL STUDY CONDUCTED AT BINANI ZINC LIMITED EDAYAR,COCHIN

STUDY CONDUCTED AT BINANI ZINC LIMITED EDAYAR,COCHIN Submitted By, ABEYMON FRANCIS Under the guidance of: MBA

Submitted By, ABEYMON FRANCIS

Under the guidance of:

MBA 2010-2012 Dr. Mathew Joseph, Faculty (Mentor)

EDAYAR,COCHIN Submitted By, ABEYMON FRANCIS Under the guidance of: MBA 2010-2012 Dr. Mathew Joseph , Faculty

Organization Study Report

Binani Zinc Ltd

2010-11

DECLARATION

I, Abeymon Francis, Student of Berchmans Institute of Management Studies, Changanassery, affiliated to Mahathma Gandi University, Kottayam hereby declare that the project is the result of my own study undertaken under the guidance of Dr. Mathew Joseph, Faculty guide, Berchmans Institute of Management Studies.

I, also declare that this report has not been submitted anywhere for award of any other degree / Diploma in any other University / Institute previously.

Place: Changanassery

Date:

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Berchmans Institute of Management Studies

Abeymon Francis

MBA

Organization Study Report

Binani Zinc Ltd

2010-11

AKNOWLEDGEMENT

I would like to take the opportunity to express my profound gratitude to all people who have helped me with sound advice and able guidance.

I am greatly thankful to Rev. Fr. Tomy Padinjareveettil, Director Berchmans Institute of Management Studies for providing proper encouragement in the completion of the organizational study.

I express my sincere gratitude to Dr. Mathew Joseph, Head of the department of Management Studies, Berchmans Institute of Management Studies, whose guidance and support throughout the organizational study helped me to complete this report successfully.

I place my sincere thanks to Mr. M.S Sreekumar, General Manager, HRD, Binani Zinc

Ltd. for permitting me to conduct the organizational study. Also I would like to thank the members of all departments for their constant support and guidance.

I would like to express my profound gratitude Mr. Sajid Ur Rehman, Officer, HRD, Binani Zinc Ltd. for all his support throughout my study.

Above all I would like to thank my God almighty whose divine guidance, have helped me to complete this work successfully.

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Organization Study Report

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2010-11

CONTENTS

DECLARATION

1

AKNOWLEDGEMENT

2

 

CHAPTER 1

6

1.1 INTRODUCTION

7

1.2 OBJECTIVES OF STUDY

8

1.3 REASONS FOR SELECTING BINANI ZINC LIMITED FOR ORGANIZATION

 

STUDY

9

1.4

SCOPE OF THE STUDY

10

CHAPTER 2

11

2.1 INDUSTRY PROFILE

12

2.2 ZINC INDUSTRY IN INDIA

16

2.3 INTERNATIONAL SCENARIO

17

 

CHAPTER 3

19

3.1

COMPANY PROFILE

20

3.2

PRODUCT PROFILE

27

3.3

MAJOR CUSTOMERS OF BINANI ZINC LIMITED

31

3.4

RAW MATERIALS & WASTES

32

3.5

MISSION

33

3.6

COMPANY POLICY & PROCEDURES

34

3.7

COMPANY STRATEGY

35

3.8

ORGANISATIONAL STRUCTURE

37

CHAPTER 4

38

4.0

VARIOUS DEPARTMENTS & THEIR FUNCTIONS

39

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Organization Study Report

Binani Zinc Ltd

2010-11

4.1 HUMAN RESOURCE DEVELOPMENT & OCCUPATIONAL HEALTH SAFETY

DEPARTMENT

 

39

4.1.1 SAFETY

47

4.1.2 SECURITY

48

4.1.3 OCCUPATIONAL HEALTH CENTER

49

4.2

COMMERCIAL DEPARTMENT

50

4.2.1 MARKETING DEPARTMENT

 

51

4.2.2 PURCHASE DEPARTMENT

54

4.2.3 STORES DEPARTMENT

59

4.3 RESEARCH AND DEVELOPMENT DEPARTMENT

63

4.4 INFORMATION AND MANAGEMENT SYSTEMS DEPARTMENT

66

4.5 FINANCE DEPARTMENT

 

69

4.6 PROJECTS AND TECHNICAL SERVICES DEPARTMENT

72

4.7 PRODUCTION DEPARTMENT

 

73

PROCESS BLOCK DIAGRAM

74

4.7.1 ROASTER PLANT

75

4.7.2 LEACHING PLANT

77

4.7.3 ELECTROLYTIC PLANT

79

4.7.4 MELTING PLANT

81

4.8

ENGINEERING DEPARTMENT

82

4.8.1 ELECTRICAL DEPARTMENT

 

82

4.8.2 INSTRUMENTATION DEPARTMENT

85

4.8.3 MECHANICAL/MAINTENANCE DEPARTMENT

86

CHAPTER 5

 

88

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Organization Study Report

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2010-11

5.1

FINANCIAL PERFORMANCE OF THE COMPANY

89

5.2ANNUAL

REPORTS

 

90

5.3

FUTURE PLANS

92

5.4 PORTERS FIVE FORCE ANALYSIS

 

93

5.5

SWOT ANALYSIS

94

5.6

PROBLEMS FACED BY THE COMPANY

97

5.7

SUGGESTIONS

97

CONCLUSION

 

98

BIBLIOGRAPHY

99

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Binani Zinc Ltd

2010-11

CHAPTER 1

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MBA

Organization Study Report

Binani Zinc Ltd

2010-11

1.1 INTRODUCTION

Binani Zinc Ltd. is a pioneer in the manufacture of high grade electrolytic zinc in India. Since its inception in the year 1967, Binani Zinc has paved the way integrating systems for maintaining product quality, environmental safety, occupational health and social accountability. Binani Zinc Limited is engaged in the manufacture and sale of zinc metal and its by-products sulphuric acid & cadmium metal.

Binani Industries Limited ranks within the first 20, amongst the top 200 large public limited companies in terms of Capital Output Ratio; BIL has employee strength of around 4000 people.

It was in the turbulent times of 1872, when the ancestors of Binani, Seth Pragdas & Seth Mathuradas Binani ventured into the trading of non-ferrous metals. Later on, the son of Seth Mathuradas, Seth Govardhandas, a man with profound vision, had seen great potential in manufacturing rather than just trading in non-ferrous metals.

Binani Zinc is the pioneer in the manufacture of high grade electrolytic zinc in India since 1967. The reigns of this wide spreading business ere with Late Shri Ghanshyam Binani, the only son of Seth Govardhandas Binani. His individual expertise and time- honed skills steered the organization towards many milestones ahead. In the span of 1970’s – 80’s Cominco Binani Zinc Limited upgraded its technology to be on par with the latest in the world. It also became the first plant in the country to commence production of special high-grade electrolytic zinc with 99.995% purity.

Today Binani Zinc being part of Binani Industries Limited is the second largest producer of Zinc in India. The company enjoys the reputation of being a leading and most preferred supplier of pure zinc in India. It is located at a place called Binanipuram in Ernakulum, Kerala. Its corporate office is at Kolkata and has another office at Mumbai. This strategic location, named as Binanipuram, has proven ideal as it facilitates the

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Organization Study Report

Binani Zinc Ltd

2010-11

loading and off-loading of zinc concentrate, provides cost efficient power supply, ease in transportation, abundant water and easily available resources, inclusive of a literate work force. The main product produced by Binani Zinc Limited is zinc and its bye products are sulphuric acid and cadmium, which are used by other industries. It has the Capacity of:-

Zinc

-

38,000 MTPA

Sulphuric Acid

-

51,000 MTPA

Cadmium

-

65000 kg PA

1.2 OBJECTIVES OF STUDY

PRIMARY OBJECTIVE

The main objective of the study is to get an idea about the whole organization as such and to understand briefly about the nature of the industry

SECONDARY OBJECTIVES

To get an organization structure of the company and to get an idea about the various departments and its functioning.

To know how the key business processes are being carried out in a manufacturing industry.

To know about various policies and programmes of the company.

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Organization Study Report

Binani Zinc Ltd

2010-11

1.3 REASONS FOR SELECTING BINANI ZINC LIMITED FOR ORGANIZATION STUDY

Binani Industries Limited has been a pioneer in non-ferrous metal industry in face. It is

the first company to manufacture zinc in India in the private sector. They also produce

Sulphuric Acid and Cadmium as by-products. The plant has the capacity to produce

38,000 MT per annum. In India, zinc is manufactured only by two companies- Binani

Zinc Limited and Hindustan Zinc Limited. Hindustan Zinc Limited is the dominant

player in Indian market. Binani Zinc Limited is the only Zinc manufacturing company in

Kerala. Over the years, Binani Zinc limited has undergone many transformations in its

capacity, technology etc. under the leadership of Sri. Ghanshyam Binani, with the stinted

support of qualified and dedicated staff.

It is the 1 st Indian company to operate a customized zinc smelter designed for

100% imported zinc concentrate. It is the 1 st Indian company to produce special

high grade quality of zinc with 99.995% of purity, The 1 st in the private sector and

one of the two primary manufacturers of zinc in India, The only company to

install a converter heat exchanger system in the acid plant designed by M/s. Lurgi,

Germany for energy conservation.

It is among the 1 st to be recognized by the Department of Science and

Technology, Government of India for its R&D facility and laboratories.

The 1 st to be recognized by the bureau of Industrial Cost and Prices as the Best

Zinc Plant in the country for the steps taken in energy conservation.

First in India and in Asia, to be certified by BVQI for the four International

accreditations viz., ISO 9001:2000, ISO 14001:1996, SA 8000:1997 as well as

OHSAS 18001:1999 for installation and maintenance of Environmental

Management System, Occupational Health and Safety Assessment Series

respectively.

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Organization Study Report

Binani Zinc Ltd

2010-11

1.4 SCOPE OF THE STUDY

The organizational study was intended to get Industrial exposure. The study intends for a period from 4 to 31 May 2010. The study was mainly conducted to understand the functions of different departments of the Company. Binani created a name in the world zinc industry, by pioneering the manufacture of high grade electrolytic zinc in India.

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Organization Study Report

Binani Zinc Ltd

2010-11

CHAPTER 2

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Organization Study Report

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2010-11

2.1 INDUSTRY PROFILE

Zinc is considered to be the fourth most important metal used in the world following steel, aluminium and copper. This metal is primarily used in the steel industry for galvanizing process. The other uses include used in making coins and pennies, used in die-casting in automobile industry, making battery container parts, used as a substitute to tin and lead pipes, ingredient in water colors and paints, activator in rubber industry etc. Also because of the fact that zinc does not corrode due to the non-acidic atmospheric corrosion, it makes the metal worth to use in for extending the life of building structures and modes of transport. The metal also comes in good use as a fungicide, herbicide and rodenticide.

Zinc is available in the atmosphere in large quantities. The various external sources in which zinc is concentrated in the atmosphere are electric services, petroleum refining, crude petroleum and natural gas extraction, manufacturing of fabricated rubber products and metal heating and plumbing products, production of inorganic chemicals etc. The various indoor sources for the same contribute to slightly higher zinc content in the atmosphere and include infiltration of outdoor air; smoking, cooking, etc. Zinc is extracted from zinc ores mostly sphalerite, zincite and smithsonite and the world mine production of zinc concentrate sums up to around 10008000 tons annually. The zinc concentrates are then used to produce the zinc metal and around 10319000 metric tons of metal is produced per year. China is the largest producer country of zinc in the world in context of both metal and concentrate production.

The world consumption of zinc annually totals up to around 10774000 tons. The three major nations arising the highest demand for zinc are • China

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Organization Study Report

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2010-11

• USA

• Japan

Regarding the zinc consumption pattern, the metal has a vast number of uses in different fields and more than 50% of zinc consumption is done by the automobile and construction industries. 20% of the total zinc demand arises from the alloy industry such as bronze, brass etc that are used in the construction and manufacturing sectors. The remaining 30% demand is shared equally by die cast zinc parts and other products like batteries, rubber goods etc. The consumption trend in the world has shown a rising trend during the last 50 years and is still increasing with the new changes in technology. Currently there is a deficit in the zinc world market when world supply and demand is compared and the deficit is as high as 455000 tons in context of metal and 766000 tons in context of mine production.

The major zinc players in the world market are Canada and China. Though china was a

net exporter of the

metal as it is the maximum zinc producer but its domestic

consumption demand doesn’t allow the country to take a lead in the world exports. The

major exporter countries of zinc metal along with their export figures are

• Canada (712000 metric tons)

• China (472000 metric tons)

• Australia (443000 metric tons)

• Korea (243000 metric tons)

• Netherlands (210000 metric tons)

• Finland (208000 metric tons)

• Mexico (166000 metric tons)

• France (143000 metric tons)

• Norway (133000 metric tons)

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Organization Study Report

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2010-11

• Japan (95000 metric tons)

• Spain (79000 metric tons)

The world exports of the zinc metal have been constantly decreasing and as there is a deficit in the world market now, the imports of the metal have become more than the

exports done in the world. The major countries that import zinc with their import figures are

• United States of America (878000 metric tons)

• China and Taiwan (304000 metric tons)

• Germany (231000 metric tons)

• Belgium (215000 metric tons)

• Italy (205000 metric tons)

• Netherlands (199000 metric tons)

• Singapore (148000 metric tons)

• France (127000 metric tons)

• Korea (110000 metric tons)

• United Kingdom (105000 metric tons)

• China (69000 metric tons)

Zinc is widely used metal and used in protecting steel, diecasting and also as chemical compound. While zinc was known to the ancients, its production with modern technology started in India only in 1966, with the Smelter at Debari, While the zinc production worldwide was 7.2 million tonne in 1989, the Indian production capacity of zinc was only 99,000 tonne. Zinc metal uses are based on a number of properties and these properties are being exploited for variety of applications in defense and other essential industries. The principal processes for manufacturing are horizontal retorts, electrolysis, vertical retorts,

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2010-11

electrothermic, overpelt and blast furnace (Imperial Smelting Process). Out of these, most important processes are electrothermic and blast furnace manufacturing, covering 93% of the total zinc production in the world. The electrolytic zinc process consists of dissolving zinc bearing materials to zinc sulphate solution which is purified to satisfactory electrolyte and recovered as metallic zinc by electrolysis. The Imperial Smelting process is pyro-metallurgical process for combined production of lead and zinc. This will include raw material handling plant, smelter and gas cleaning plant, smelting blast furnace, zinc refinery, lead refinery, and recovery of high value metals. Zinc concentrates are the raw material for zinc smelter. Zinc ore consists of sulphate, sulphide mineral with galena, chalcopyrtite and copper sulphide minerals. Zinc concentrates from zinc-lead ores contain about 59% zinc andd complex ores have 54% zinc. The pollution control/environmental requirements in terms of water, air, sulfur dioxide emission, etc., are important. Secondary zinc production has started in India in the last few years. Secondary zinc is recycling process and thus adds to the economy. The main sources of secondary zinc are scraps, drosses and fluxes. The process of electrolyzing is similar to primary zinc products. A large number of recovery units with capacity of 1 tone per day to 15 tonne per day have started and they are importing basic raw material (zinc concentrate) from abroad.

Market influencing factors

Level of stocks with London Metal Exchange

Fluctuation in the world demand for zinc

Growth rate of the zinc producing countries

Changes in the prices of the other substitute metals

Funds in the zinc sector

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2.2 ZINC INDUSTRY IN INDIA

The Indian zinc industry consists primarily of two players, namely Hindustan Zinc and Binani Zinc. Hindustan Zinc is an integrated producer having its own mines and has a market share of more than 60%. Binani Zinc is a custom smelting producer. All the major zinc ore mines in India viz. Rampura Agucha, Rajpura Dariba and Zawar mines are located in the state of Rajasthan and all of these are under the control of Hindustan Zinc.

The zinc production capacity in India is set to register robust growth after the government allowed privatization of the state owned company Hindustan Zinc in 2002. The total production capacity stood at around 707,000 tonnes in Financial Year 08. The zinc production has registered a strong growth in India in the last few years. It stood at around 4% of total zinc production in the world in 2007. The zinc production increased from 265,000 tonnes in 2004 to 458,000 tonnes in 2007, registering a growth of 20% CAGR.

The zinc consumption has increased from 347,000 tonnes in 2004 to 470,000 in 2007, backed by demand from infrastructure and industry. Important to add that galvanizing accounted for around 70% of the total consumption.

The demand for zinc is expected to remain strong in the coming years on account of growth in the key zinc consuming industries like infrastructure, realty and manufacturing. Moreover, the growth in automobile and consumer durables industry would also further aid the increase in consumption of zinc.

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2.3 INTERNATIONAL SCENARIO

The two contemporary technologies are roast-leaching electrolysis and Imperial Smelting process (ISP). 80% of production of zinc in world is by electro-winning process and 14% by ISP. The global production at present is about 7.2 million tonne (28% production is from Western Europe, 22% from USA, 21 % i s from Asia and erstwhile USSR and China produces about 27-28%). Production of zinc in USA, Europe and UK have decreased as a result of decline in mining of zinc ore and concentrates. Manufacture of Zinc in these countries is dependent on import of concentrates. Canada, Peru, China, former USSR have increased their production of zinc and there is increase in capacity build-up in Canada, Peru, China, India, Brazil, Mexico and some other countries. Addition of investment in zinc production is not expected. Zinc’s meteoric rise in prices to over $4,000 per tonne in 2006 appears to have been shortlived, with values tumbling back to $2,500 in 2007. And while this may have dulled the metal’s attraction as a speculative investment, those involved in the making and using of the zinc – producers and their zinc customers alike – are no doubt secretly heaving a sigh of relief. At $4,000 plus, though zinc consumption continued to rise, substitution was being talked of and was perilously close to becoming a reality. At today’s price levels, while there are pressure points and bottlenecks along the supply chain, it would seem zinc is approaching an equilibrium price allowing the required capital investment in new capacity that is needed to meet healthy and growing demand – notably from the galvanizing business – but not so high as to damage this consumption base.

In recent years growth in demand for zinc has been led by emerging economies, notably China. Last year usage in Brazil, Russia, India and China (the BRICs) rose by 12% to 4.5m tonnes, to account for 40% of global consumption, up from just 22% in 2000. Global demand grew by just 2.9% in 2007 to 11.3m tonnes, following a 3.6% expansion

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in 2006. Demand was weak in the OECD and some parts of Asia in 2007. There was little growth in OECD demand in 2007, and usage fell in a number of countries. According to the International Lead Zinc Study Group (ILZSG), US consumption fell by 8.4% and EU consumption rose by just 1.4%. In Asia (excluding China and India), consumption in Japan fell by 0.8%, in South Korea by 4.3% and in Taiwan by 20%. Clearly, exceptionally strong growth in China and India was at the expense of consumption elsewhere in the region. These trends appear to be persisting in 2008. ILZSG data suggest that global usage of zinc in the first quarter, at 2.77m tonnes, was 1.6% higher than in 2007. Consumption within the BRICs was 8.4% higher, while offtake elsewhere was down by around 5%. The growth in Chinese consumption remains strong. Within the BRICs, China is by far the largest zinc consumer, accounting for 32% of global usage. Chinese consumption in the first quarter was up by 9.4% year on year. The latest economic data suggest that industrial production is rising by around 16% per year, while fixed asset investment is running 25% ahead of last year. In response, galvanised steel production continues to expand rapidly.

This reflects the buoyant economic environment, and the significant investment in new galvanising capacity as steel mills in China move further down the value chain. In 2007 domestic galvanised steel output rose by 30% to 18m tonnes. In the first four months of this year production was around 20% higher in year-on-year terms. Demand for zinc within China has benefited from rapid growth in transport and investment in infrastructure and non-residential construction. Production of motor vehicles, washing machines, refrigerators and airconditioners have all registered year-on-year gains of over 15% to April, while production in the shipping sector was 60% higher. We forecast a 9.3% increase in Chinese refined zinc consumption in 2008, followed by further growth of 9.6% in 2009 and 8.7% in 2010.

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CHAPTER 3

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3.1 COMPANY PROFILE

The Braj Binani Group is a well-diversified industrial house with a 138-year history behind it. Today, the group is actively working in the core sectors of Cement, Zinc, Glass Fibre and Downstream Composite Products. Working in complete synergy across verticals, across the world. By understanding the needs of an evolving world, the Braj Binani Group is charting a path to the future.

In 1967, ‘Binani’ crossed a milestone in the world zinc industry by pioneering the manufacture of high-grade electrolytic zinc in India. The reigns of this expanding business was held by Late Ghanshyam Binani, the only son of Seth Govardhandas Binani. His individual expertise and time-honed skills steered the organisation towards many more milestones.

In the span of 1970s-80s Cominco Binani Zinc Ltd. upgraded its technology to be at par with the latest in the world. It also became the first plant in the country to commence production of special high-grade electrolytic zinc with 99.995% purity.

In 1983 Binani Metals Ltd. was formed merging Binani Metal Works.

By 1991, the company, having surged to a production capacity of 38,000 tonnes per annum of zinc and zinc based products, was re-christened as Binani Zinc Ltd. In 1997, the company diversified into the manufacture of cement by establishing Binani Cement Ltd. This pivotal move laid the foundation for the company’s most successful decade. One that also saw the company diversify into the manufacture of glass fibre. The mantle of responsibility passed on to Mr. Braj Binani, who following the footsteps of his father, Late Ghanshyam Binani, has successfully carried forward the family tradition of growth and excellence, and is today heading the ‘Binani – Braj Binani Group’.

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The group has come a long way from trading to production of zinc to the manufacture of glass fibre and cement, taking on new challenges and preparing itself to make the most of global opportunities.

Binani was the first in India to have a custom zinc smelter for manufacture of electrolytic zinc. Since its inceptions in the sixties, Binani Zinc has constantly been modernising and upgrading its technology in step with global advances.

Binani Zinc has won several laurels for its various efforts in environment management and energy conservation. In its effort to minimise the environmental impact of zinc production, its solid waste residues are stored in secured landfills designed and built to exacting US EPA standards. Binani Zinc is also certified under the ISO 9000, ISO 14000, SA 8000 and OHSAS 18000.

Zinc Plant

The ultra-modern zinc production plant has a capacity 38,000 MTPA. The premises of the plant is located across 110 acres of land in lush green, verdant Edayar Village, Ernakulam District, Kerala, on the banks of serene Periyar River, 15 km upstream from the Cochin Port and 13km from Cochin International Airport.

This strategic location, named as Binanipuram, has proven ideal as it facilitates the loading and off-loading of zinc concentrate, provides cost efficient power supply, ease in transportation, abundant water and easily available resources, as well as a literate workforce. The plant also has the capacity to treat concentrates of varying compositions, giving it an unassailable edge over integrated producers.

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Awards & Accreditations

Over the years, Binani Zinc has achieved several awards to commemorate its success in various fields such as environment conservation, excellence in manufacturing processes and quality standards.

Environment

Kerala State Pollution Control Board award in 1990, 1991 & 1993.

Kerala State Pollution Control Board award for securing first place among large scale industries in making substantial and sustained achievement in pollution control for the year 2007.

Kerala State Pollution Control Board award for securing overall excellence in making substantial and sustained effort in pollution control for the year 2008, among large scale industries.

Green Tech Environment Excellence Award in metals and mining sector – Silver - 2008.

Green Tech Environment Excellence Award in metals and mining sector – Gold -

2009.

Leadership & Excellence Award for Environment, Health & Safety instituted by Confederation of Indian Industries [CII] - 2009.

Kerala State Pollution Control Board award for securing overall excellence in making substantial and sustained effort in pollution control for the year 2009, among very large scale industries.

Safety

Safety Award from National Safety Council in 1997.

Excellence Award for Safety Management from NSC in 2006

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Certificate of excellence for outstanding performance in Industrial Safety from Government of Kerala. Category – Best Safety Committee in 2008

Certificate of excellence for outstanding performance in Industrial Safety from Government of Kerala. Category – Best Safety Committee in 2009.

Best Safety Committee award from National Safety Council of India – 2009.

Best Safety conscious worker, state level, from National Safety Council in 2009

Health

Certificate of excellence for outstanding performance in industrial safety from Government of Kerala. Category – Best Occupational Health Centre – 2008.

Certificate of excellence Safety Award from Government of Kerala. Category – Best Occupational Health Centre – 2009.

Best Factory Medical Officer from Dept. of Factories and Boilers, Government of Kerala in 2009

Energy

Energy conservation award from Government of Kerala in 1993, 1994, 1995 &

1996

Energy conservation award from International Greenland Society in 1994

General

Industry Excellence Award from Institution of Engineers in 1998

Indian Institute of Metals – Non-Ferrous Best Performance Award – 2009

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An enviable track record

1960s

spread over five decades.

• In 1962 Binani entered into a technical and financial collaboration with Cominco

Limited Canada to form Cominco Binani Zinc Limited and created history becoming the first Indian company to manufacture primary high-grade electrolytic zinc in India in 1967

• It

Binanipuram, Kerala in 1967

was the

first

Indian company to

1970s

manufacture high-grade

electrolytic zinc

at

• By leveraging technology and keeping up with a burgeoning market, Binani Zinc Limited successfully increased its capacity from 12 kty to 20 kty

1980s

• Binani Zinc Limited further upgraded its technology with assistance from M/s. Lurgi, Germany

• Binani Zinc Limited commenced production of special high-grade electrolytic zinc ingots with 99.995% purity

1990s

• Cominco Limited carted off its financial support from its operations in alignment with

their world policy. Cominco Binani Zinc was re-christened as Binani Zinc Limited on 3rd March 1991.

• In 1995 Binani Zinc entered into collaboration with M/s U.M. Engineering Limited to adopt its state-of-the-art technology and increased its capacity to 30 kty

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2000-09

• Binani Zinc Limited received an ISO 14001 and an ISO 9001:2000 Certification from Bureau Veritas Quality International for their Environment Management System and Quality Management System respectively

• Binani Zinc Limited adopted the '5s' housekeeping management practice and tagged it with the international accreditation ISO 14001:1996. In April 2001, voluntary commitment to quality was demonstrated by getting the international accreditation on quality ISO 9001:2000. Leveraging people potential, Binani Zinc Limited became the first company in the manufacturing sector to go for international accreditation.

Human Resources/Industrial Relations

Industrial relations continue to be maintained at cordial level, and the productivity-based long-term settlement provisions are implemented. Learning and development is the focus; with training and development imparted at 4.45 mandays per employee per year on the average.

Occupational health of employees are closely monitored through annual medical examination conducted, and lifestyle consultation at our Ghanshyam Binani Health Centre (GBHC). Industrial hygiene study recommendations are implemented. Training, awareness and competence to employees, contractors and contractors’ labour on industrial safety, worker safety, and workplace safety are provided.

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Corporate Social Responsibility

The Braj Binani Group is a multifaceted organisation in the truest sense of the word. This philanthropic philosophy has seen it promoting several schools, colleges, libraries, educational institutes and noteworthy institutions throughout the country.

The Group’s Social Initiatives

>> The company, through its initiative , The Ghanshyam Binani Health Centre, provides free diagnosis camps for its employees, their family and the nearby community also.

>> Ghanshyam Binani Foundation (the Binani charitable body) periodically conducts free eye camps, offers donations and provides scholarships to the underprivileged

>> In another notable initiative, the group has instituted the Ghanshyam Binani Children’s Bravery Award, an annual award event.

>> The group has built a community hall in edayar pachayat where a social initiative called “PAKAL VEEDU” functions now. It is a place where the older people of the community are taken care of , during the day. The GBHC conducts frequent check up camps for the inmates.

>> Another company initiative is the supply of drinking water for the people living in the area.

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2010-11

3.2 PRODUCT PROFILE

The Binani Zinc unit at Kerala has the distinction of pioneering manufacture of special high-grade zinc of 99.99 / 99.995% purity and is the preferred source for customers across all industry segments.

Main Product : High grade / special high grade zinc metal

By-products

: Cadmium & Sulphuric acid

Capacity

: Zinc metal

- 38,000

mtpa

Sulphuric acid - 51,000 mtpa

Cadmium

- 65,000 kgs per annum

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Organization Study Report

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2010-11

ZINC:

 

High Grade (%)

Special High Grade (%)

Zinc

Min. 99.95

99.99

Lead

Max. 0.025

0.003

Cadmium

Max. 0.020

0.003

Iron

Max. 0.010

0.003

Tin

Max. 0.001

0.001

Copper

Max. 0.002

0.002

Thallium

--

0.001

Indium

--

0.0005

Total Impurities

Max. 0.05

0.01

Available as: Zinc Ingots - Weight: 25 Kg (approx.)

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CADMIUM:

 

%

Cadmium

99.95 Min.

Zinc

0.01 Max.

Copper

0.02 Max.

Lead

0.025 Max.

Iron

0.002 Max.

Nickel

0.002 Max.

Antimony

0.001 Max.

Arsenic

0.002 Max.

Thallium

0.002 Max.

Total Impurities

0.05

Weight (approx.): 200 gm

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Available as: Plate

Size: 305 mm x 205 mm

mm and Weight

(approx.): 4

Pencil - Size: 12.5 mm dia. x 225 mm long and

-

x

6.5

Kg.

MBA

Organization Study Report

Binani Zinc Ltd

2010-11

SULPHURIC ACID:

 

% by Mass

Total Acidity (As H2SO4)

98.0 Min.

Residue on Ignition

0.02 Max.

Iron

0.05 Max.

Lead

0.005 Max.

Arsenic

0.004 Max.

PRODUCT PRICES:

Available as: Naked Ex- works, Binanipuram

0.004 Max. PRODUCT PRICES: Available as: Naked Ex- works, Binanipuram 30 Berchmans Institute of Management Studies

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3.3 MAJOR CUSTOMERS OF BINANI ZINC LIMITED

ZINC:

NATIONAL PANASONIC

Eveready industries Ltd.

Phonex industries Ltd.

METADUST

Ganga Jamuna Ltd.

Southern metals and alloys Ltd.

Jeep.

Demorna chemicals Ltd.

Sargam Metals Ltd.

SULPHURIC ACID:

Vyshak chemicals Ltd.

Narmada chemicals Ltd.

Hindusthan news print Ltd.

Sud Chemicals Ltd.

Reliance dye chemicals Ltd.

Trishul chemicals Ltd.

Coods agroLtd.

CADMIUM:

Anil metals company.

Southern metals market

S.K chemicals Ltd.

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3.4 RAW MATERIALS & WASTES

RAW MATERIALS:

The raw material used for producing Zinc is Zinc Concentrate (called calcine) which is imported at the rate of 66000 MT/YR and the fuel 5.1 KL/day.

WASTES:

LIQUID WASTES:

The liquid effluent of 550 m 3 /day generated from process plant utility services, DM plant and Supernatant solution from Jarosite pond is discharged into Periyar River after treatment.

For treating the effluent an effluent treatment plant consisting of equalization tanks, neutralization tank, Clariflocculator and collection tank are provided.

SOLID WASTES:

Dry Jarosite from leaching and purification plant containing iron, Zinc, Lead, Cadmium, Copper, Nickel pumped to Jarosite pond.

ETP sludge for disposal in Jarosite pond.

Gypsum and anode used from cell house – Jarosite pond.

Primary and secondary cake leach residue.

Zinc ash from zinc melting furnace.

Nickel cake from leaching and purification plant.

Thallium cake from leaching and purification plant.

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2010-11

Spent V 2 O 5 catalyst from roaster and acid plant.

Lead dross from cell house.

Spent oil from captive power plant.

3.5 MISSION

>Forge ahead as a world-class organisation in the core sector industry in India and abroad.

>Explore opportunities and enhance stakeholder value through ethical practices.

>Relentlessly pursue the global movement for a ‘customer-driven, quality-oriented, socially-conscious’ industrial corporation.

>Adopt, adapt, assimilate and integrate technologies from global giants, thereby offering value-added products and services.

>Adhere

environmental stipulations.

to

the

highest

standards

in

manufacturing;

over

and

above

stringent

>Pursue research and development activities diligently, consolidating on its track record of innovation and breakthroughs in manufacturing practices on a state-of-the-art technology platform.

>Promote human values at the forefront and nurture its people with a deep-rooted sense of employee care, concern and commitment to people; them being considered as assets of high intrinsic value.

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3.6 COMPANY POLICY & PROCEDURES

1. Binani Zinc Limited is engaged in the manufacture and sale of zinc metal and by- products sulphuric acid and cadmium metal.

2. The company considers quality of its products and services, environmental control, safety and health of all its employees and social accountability as the prime management responsibility and strive for continual improvement.

3. The company is committed to comply with social accountability standards all existed national and local applicable legislations including all legal and other requirements pertaining to environment, occupational health and safety.

4. The company will encourage waste minimization and reutilization as well as recovery of valuables from waste stream.

5. The company will continuously strive for energy conservation in all its operation and process.

6. The company will endeavor to ensure that the people and the environment are not put to unacceptable risks by adopting world class environment friendly operations and processes and by ensuring the use of relevant personal protection equipment.

7. The company will impart training to all its employees in creating awareness to upgrade their knowledge on all aspects of technology and plant operation, quality, environment, health, safety and social performance.

8. The company will interact with its supplier on a professional and fair basis and select them on the basis of quality, timely delivery and cost.

9. The company will interact with its customers to continually assess their needs and expectations and ensure total customer satisfaction by maintaining consistent quality of its products and services with the involvement of its employees.

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2010-11

10. The company will promote transparency and openness in its relationship with its employees and the community and treat them in a fair and respectful manner. 11. The company will display the policy in its premises and also in the brochures published for the benefit of customer, supplier, employees and other interested parties.

3.7 COMPANY STRATEGY

The core strategy is based on consolidation and sustainable growth. The investment strategy of the company aims at becoming a low cost producer in all its business and in upgrading technology to meet stringent product quality requirements. Quality is the mantra of the organization.

Ever since its inception it has been in the forefront of providing quality products and services to its customers with equal emphasis on environmental pollution control and energy conservation. It maintains commendable grade of quality in all levels of its operation and high level of its productivity by adaptation of state of art technology. The customer centric manufacturing and satisfaction are the main forte of the quality management satisfaction.

The approach is customer centric and the production of 30000mt of zinc/ annum. But the scarcity of raw material is the main problem faced since raw materials are basically imported. The implementation of management like ISO 9000, ISO

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2010-11

14000, ISO 18000, SA 8000 provide the company with a string orientation towards an unmatched paradigm for world class manufacturing.

Modernization and up gradation program was undertaken over a period of ten years from 1985-1995 in collaboration with various leaders in non ferrous metal industries like Lurgi ( Germany), Mechim ( Belgium). The state of art technology and automated plant and equipment were installed. Earlier the company entered into a technical and financial collaboration with a Canada based Cominco Ltd. World leaders in the field of non ferrous metals to form Cominco Binani zinc Ltd.

The company has entered into collaboration with Um engineering Belgium for modernization and expansion of its leaching purification plant. The technology for roasting and electrolytic plant of the zinc smelters is provided by Lurgi, Germany. The technology for the tank house envisaged for the brown field expansion at the company will be provided by Um engineering Belgium. Technology and operational back up collaboration has been tied up with Korea Zinc Corporation and Korea Zinc Company limited for all areas of zinc plant except tank house for the brown field expansion.

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3.8 ORGANISATIONAL STRUCTURE

Study Report Binani Zinc Ltd 2010-11 3.8 ORGANISATIONAL STRUCTURE 37 Berchmans Institute of Management Studies MBA

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CHAPTER 4

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4.0 VARIOUS DEPARTMENTS & THEIR FUNCTIONS

4.1 HUMAN RESOURCE DEVELOPMENT & OCCUPATIONAL HEALTH SAFETY DEPARTMENT

ASST. VICE PRESIDENT (HRD&OHS)

HEALTH SAFETY DEPARTMENT ASST. VICE PRESIDENT (HRD&OHS) GENERAL MANAGER (ADMINISTRATIONS) GENERAL MANAGER (HRD)

GENERAL MANAGER

(ADMINISTRATIONS)

GENERAL MANAGER

(HRD)

CHIEF MEDICAL

OFFICER

 
 
 
 
 

Dy. GENERAL MANAGER

 

Sr. MANAGER

(INDUSTRIAL RELATIONS)

(SAFETY)

 
 

DEPUTY MANAGER

 
 
 
RELATIONS) (SAFETY)   DEPUTY MANAGER     WELFARE OFFICER   PERSONNEL OFFICER    
RELATIONS) (SAFETY)   DEPUTY MANAGER     WELFARE OFFICER   PERSONNEL OFFICER    

WELFARE OFFICER

 

PERSONNEL OFFICER

 
 
 

NON MANAGERS AND

WORKERS

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2010-11

HUMAN RESOURCE DEVELOPMENT DEPARTMENT

FUNCTIONS

Recruitment and selection

Induction

Training and development

Public relations

Industrial relations

Performance Appraisal

Leave Administration

Separation of employees

Punishment procedure

Grievance procedure

Wages and salary administration

Provident fund

ESI Scheme

Gratuity

Welfare activities

Medical facilities

Educational facilities

Assistance to distribution

Promotions

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1. SELECTION AND RECRUITMENT

The department where there is a vacancy will sent a Staff Requisition to the HR Department containing the job requirements. A fixed time will be allotted for the receipt of application. The application received will be scrutinized and shortlisted. Hence the final interview and medical check up will be carried out and it will be shortlisted. In case of vacancies the first preference will be for lateral transfer and then for promotion.

The first scrutiny and short listing will be done by HRD. But the final scrutiny and fixing of interview date will be done with the consent of the General Manager of the department. The final appointing authority will be the President and the interview is rest to him. Then the offer letter will be sent for the medical exam.

2. INDUCTION

Induction will help in familiarizing with the working environment. The training period for the managerial staff is 1 year and that for workmen is 2 years. The probation period is 6 months.

3. TRAINING AND DEVELOPMENT

Binani Zinc is an organization following 3 TIER SYSTEM. Either a centrally organized training will be provided or specific programs conducted by resource persons from outside will be organized. This may include Individual Employee Contact Programme, which is conducted for identifying the strengths and weaknesses in the employees and also to understand their perception about the management.

Also Knowledge and Skill Upgradation Program is conducted for non-managerial staff for occupying the higher position in the management category in terms of knowledge, skill and behavior. Cross Functional Exposure Program is a training program intended for management staff for career development. Also Learning Center Initiatives are taken in

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which one among a group will take a session for the group. This is done in order to create an informal learning atmosphere.

4. PUBLIC RELATIONS

Planned and sustained effort is taken to establish and maintain goodwill and mutual understanding between an organization and its public. It includes the relation with the employees, community nearby and government. The programs like Deepawali celebrations , Founder’s day celebrations (May 3 rd ) is informed to the employees and the family members. Also it plays a major role in internship of new employees, helping them

to fit into the organization. As part of public relations, whenever mock drills are conducted the near by communities are informed about it, so that they do not get panic at the siren given at the mock drill. The financial assistance is provided for religious and social institutions. Also the medical camps being conducted are informed to the public.

But the company does not give much priority to the media relations, and responds only to the media publications made about it. The public relations office is concerned with the publication of Binani home journal and also with the subscription of other dailies, magazines and journals. All advertisements about the company in magazines, the financial assistance given to various institutions, the letters to the government, the company sponsorship offered by the company, goodwill letters, thank you letters, clarification letters, etc are forwarded through the PRO.

5. INDUSTRIAL RELATIONS

There exists cordial relationship between the trade unions and the management and hence the industrial relations is very smooth. There exists three unions in Binani Zinc Ltd. namely

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Cominco Binani Zinc Employees Union

Cominco Binani Zinc Employees Association

Cominco Binani Zinc Employees Organization

Each of these trade unions has secured 20 % and more in the referendum conducted.

6. PERFORMANCE APPRAISAL SYSTEM

The performance appraisal system is done effectively each year for the managerial staff of the company. At the begining of each financial year the employees are asked to prepare a goal sheet. This is a detailed report of the activities they intend to do in the financial year. The report also contains the ways in which they intend to accomplish these objectives. These goal sheets are preserved.

During december the company makes an audit of the activities of the employees and check whether the objectives are being accomplished or whether steps for accomplishment are being taken. If there is any non conformity, the employee is given an extra two months time to improve. If the company is satisfied with the emlpoyees work, he will be rewarded.

Career Planning and Promotional policy

Career planning of an employee is done at the time of recruitment. The promotional policy of the employees in the company is simple. There is a basic requisite for the employees to hold each post in the company. If there is any vacancy in the company, the employees are preferred over outsiders. The candidates who satisfy the conditions are promoted to the vacant post.

The promotional policy of the company is only applicable to the managerial staff.

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7. LEAVE ADMINISTRATION

For workmen, the leave administration is as per the long term settlement ie., casual leaves

shall be granted to permanent workmen at the rate of 10 days in a calendar year. Also privilege leaves shall be granted. Sick leave shall be granted to those who are not covered at the ESI scheme at the rate of 7 days with pay in a calendar year. Medical certificate should be provided for more than 2 days of sick leave. Compensatory off should be granted within the same month or within 2 months immediately following the month in which the office was due.

For management staff, there are 11 casual leaves and 30 privilege leaves. Also there is leave application book for each employees.

8. SEPARATION OF EMPLOYEES

The separation of employees can be through resignation or retirement. In case of resignation the person has to give one month notice (for GM’s and above 3 months notice). In case of retirement character certificate, clearance certificate, service certificate, etc are issued. All the benefits are given on the retirement day itself.

9. PUNISHMENT PROCEDURE

For workmen, the whole procedure is as per the standing order. Before taking action, the concerned union members is always unlimited. The management staff, especially in case of theft, it is direct termination, if the crime is proved.

10. GRIEVANCE PROCEDURE

Most of the grievances are settled in the department itself. The unions will nominate

representative in departments and forward the list to the management.

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The grievances reported will be sent to the department head in writing in prescribed Grievance form.

If there is no reply or if the reply is not satisfactory within 48 hours, then the employee can submit a copy to the concerned functional manager.

If there is no response within another 48 hours, then the complaint could be forwarded to the Personnel Department.

In case of lack of response even after 72 hours, the complaint shall be forwarded to the President.

After waiting for 2 more weeks the complaint could be forwarded to the State Labour Department.

11. WAGES AND SALARY

The wages and salary is determined based on the attendance record provided by the time office. The time office keeps the punching of the workmen. By the starting of each month, a shift schedule is prepared and programmed. Any change in the shift has to be reported to the time office. At the end of each month, the time office gives record of leaves, attendance, over time, off days or holiday work and depending on this the wages are computed.

The pay slip will contain all the details of allowances, deductions and total pay of employees. The over time rate is twice in plant and for managerial staff it is one and a half times. The wages and salary are given on or before 5 th of every month. Also Binani Zinc’s time office is the Kerala’s first computerized time office.

12. PROVIDENT FUND

Binani Zinc Ltd is an exempted organization and looks after the provident fund administration by itself. An account for provident fund is in the bank and after the

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expenses the balance is invested as per the ruling of the Ministry of Labours. To be eligible for provident fund benefits, one day’s work is enough. Also there is provision for voluntary provident fund. But there is a limit on the amount that can be surrendered.

13. ESI SCHEME

Only very few employees at BZ are under the ESI scheme. But for contract workers, it is made compulsory for ESI scheme on Life Insurance Scheme.

14. GRATUITY

Gratuity is a benefit that is given to the employees at the time of retirement. If a person complete service for more than 5 years, he is eligible for this.

15. WELFARE ACTIVITIES

The welfare measures adopted by BZL can be classified into statutory and non- statutory measures.

Statutory measures includes canteen providing subsidized food, rest room with various facilities, 24 hours working first aid unit, etc.

Non-statutory measures includes uniform/foot wear, one umbrella per year, recreational facilities, Founders day, Deepawali celebrations, etc.

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4.1.1 SAFETY

Safety is the keyboard at Binani Zinc Ltd. The use of Personal Protective Equipment (PPE) is compulsory for each and every employee. If an employee is found without PPE a Red Card is issued. As the first step he is not given the prize on safety day. If he is again spotted without PPE, there is a cut in his salary.

There is an OHS committee set up to occupational health, safety and house keeping practices. The members are executive Vice President, Manager safety , three members representing the three recognized unions, senior engineers (environment) and the chief Managerial Officer. The committee carries out regular inspections and make necessary recommendations.

In order to promote safety house keeping the Japanese 5S concept is practiced in all departments at BZ

1. Seiri

-

Segregation, Sorting

2. Seiton

-

Arrangement

3. Seiro

-

Cleaning

4. Seiketsu

-

Standardization, maintenance, control

5. Shitruke

-

Training, Discipline

There is a safety management system to ensure safety and healthy environment. Periodical Monitoring of dust, noise, illumination, etc is carried out. There is a safety suggestion scheme in which employees can make suggestion and the best suggestion is given award. There is a safety and house keeping notice board to display notices and messages regarding it.

There is a safety mock drills carried out twice a year. Competition are held as a part of Safety Day Celebrations(March 4 th ) , Fire Safety audit and electrical safety. Audit are

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conducted by external agencies and their decisions are implemented. The company is giving safety training on a regular basis and it has an Onside Emergency Plan detailing the responsibilities of various functionaries in case of an accident.

4.1.2 SECURITY

The security function is concerned with the security of personnel as well as property. The security looks into the arrivals and departure of employees, their punchings , control of shift buses , allotment of out pass, visitors pass, etc. Punching is permitted within 30 minutes, permission is to be sought from the concerned department. If the punching system fails the security personnel note the timing and hand it over to the time office.

The siren system is also included in security function. Normally sirens are given at the beginning and end of the shift hours. During emergency wailing alarm is given. Other security functions include checking of workmen of departure, attending incoming calls and transferring them.

At most care is taken during transport of product and each vehicle for transport of Zinc, Cadmium and H2SO4 is thoroughly checked for damage and leakage. The license of driver, documents of the vehicle and the load carried is checked. The vehicle essentially must contain a first aid box. The security office maintains files, registers and documents carrying information about personnel, about material, pass challans, monthly report about fire fighting equipments, interdepartmental sports and games etc. The security also collects information in the area of industrial relation, employee welfare, etc that may assist the management in taking decision.

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4.1.3 OCCUPATIONAL HEALTH CENTER

Clean environment, safety practices and good health are the major ingredients of Binani Zinc vision. To achieve good health of all its employees the company has set up an occupational health center in the name of Ganashyam’s ‘BINANI HEALTH CENTER’ . The Centre emphasizes on the preventive aspects and its main objective are protecting workers, health, promoting physical, mental and social well being of workers and minimizing the consequences of occupational hazards, accidents and diseases. The centre has the most sophisticated instruments with facility for audio testing, vision testing, ESU, checking of lungs and also a biochemistry and haematology lab. A doctor is available from 8:30 am to 5:00 pm. The first aid units functions for 24 hours and for all 7 days in a week. There is one ambulance to evacuate people in case of serious injuries.

The primary function of the center is providing total health cure to all its employees from the time of recruitment. Each employees has to undergo thorough medical check up right at the time of recruitments and from then he has to undergo annual medical clean up every year. The center maintains a personal file for each employees free of cost. All the facilities and services of the center are accessible to their families for a normal fees. The community people can make use of center on Tuesdays and Wednesdays.

The center also organized health checkups, diabetics detection camp, eye camps, etc. Training programs on first aid is given regularly to employees. The center also focuses on health counseling, use of personal protective equipments, occupational hygiene, etc.

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4.2 COMMERCIAL DEPARTMENT

VICE PRESIDENT (COMMERCIAL)

4.2 COMMERCIAL DEPARTMENT VICE PRESIDENT (COMMERCIAL) GENERAL MANAGER ASST.GENERAL MANAGER (MARKETING) (MATERIALS)
4.2 COMMERCIAL DEPARTMENT VICE PRESIDENT (COMMERCIAL) GENERAL MANAGER ASST.GENERAL MANAGER (MARKETING) (MATERIALS)
4.2 COMMERCIAL DEPARTMENT VICE PRESIDENT (COMMERCIAL) GENERAL MANAGER ASST.GENERAL MANAGER (MARKETING) (MATERIALS)

GENERAL MANAGER

ASST.GENERAL MANAGER

(MARKETING)

GENERAL MANAGER ASST.GENERAL MANAGER (MARKETING) (MATERIALS) DEPUTY MANAGER Sr. MANAGER Sr. MANAGER

(MATERIALS)

DEPUTY MANAGER

Sr. MANAGER

Sr. MANAGER

(MARKETING)

(MARKETING)

(MATERIALS)

OFFICER

(MARKETING)

 
OFFICER (MARKETING)  
PURCHASE

PURCHASE

STORES

STORES

STORES

Berchmans Institute of Management Studies

Sr.OFFICER

Sr.OFFICER

(PURCHASE)

(STORES)

PURCHASE STAFF

50

Institute of Management Studies Sr.OFFICER Sr.OFFICER (PURCHASE) (STORES) PURCHASE STAFF 50 STORES STAFF MBA

STORES STAFF

MBA

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COMMERCIAL DEPARTMENT

Report Binani Zinc Ltd 2010-11 COMMERCIAL DEPARTMENT MARKETING PURCHASE STORES 4.2.1 MARKETING DEPARTMENT VICE
Report Binani Zinc Ltd 2010-11 COMMERCIAL DEPARTMENT MARKETING PURCHASE STORES 4.2.1 MARKETING DEPARTMENT VICE
Report Binani Zinc Ltd 2010-11 COMMERCIAL DEPARTMENT MARKETING PURCHASE STORES 4.2.1 MARKETING DEPARTMENT VICE
Report Binani Zinc Ltd 2010-11 COMMERCIAL DEPARTMENT MARKETING PURCHASE STORES 4.2.1 MARKETING DEPARTMENT VICE

MARKETING

PURCHASE

STORES

4.2.1 MARKETING DEPARTMENT

VICE PRESIDENT (COMMERCIAL)

4.2.1 MARKETING DEPARTMENT VICE PRESIDENT (COMMERCIAL) GENERAL MANAGER (MARKETING) DEPUTY MANAGER Sr. MANAGER

GENERAL MANAGER

(MARKETING)

DEPUTY MANAGER Sr. MANAGER (MARKETING) (MARKETING)
DEPUTY MANAGER
Sr. MANAGER
(MARKETING)
(MARKETING)
DEPUTY MANAGER Sr. MANAGER (MARKETING) (MARKETING) OFFICER (MARKETING) 51 Berchmans Institute of Management

OFFICER

(MARKETING)

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FUNCTIONS OF MARKETING SECTION

Finalization of Sales policy formulation

Finalization of new/continuation of current selling agency agreements for zinc and cadmium.

Dispatch of zinc and cadmium.

Dispatch of sulphuric acid.

Interaction of customers.

Transportation contract

SALES PROMOTION:

Promotion of the products does not take place through media or any other way. Customers of the firm are huge companies. These prospective customers act as the sale promoters of the company. These companies share their experience of using the products of Binani zinc with other companies. There is only one competitor for the company .due to these reasons no additional cost for sales promotion is to be incurred by the company.

SALES:

Sale of cadmium, zinc and sulphuric acid is done directly by the company. The sale is done directly from the plant and also from the various depots situated in Mumbai, Chennai etc. Sale of zinc and cadmium is determined directly on the basis of level of production. Sale of sulphuric acid is fixed in advance and only a specific number of customers can be supplied. Sale is also carried out through sales agents.

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MARKETING PLAN

It is taken care of during the formulation of sales policy and long term contract booking for whole financial year. Marketing budget forms the major financial resource planning for each year, which is carried out at the beginning of the each financial year.

PRICING OF BINANI ZINC PRODUCTS

ZINC AND CADMIUM

Price is based on import/local prices

Fluctuations in the import prices.

Prizes are set in line with HZL prices.

Price of zinc concentrate. SULPHURIC ACID

Acid supply and demand

Pricing depends on sterlite/sulphur prices

MARKET INFLUENCING FACTORS

Level of stocks with London Metal exchange.

Fluctuation in worldwide demand of zinc.

Growth rate of zinc producing countries.

Funds in zinc sector

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4.2.2 PURCHASE DEPARTMENT

VICE PRESIDENT (COMMERCIAL)

GENERAL MANAGER

(MATERIALS)

Sr. MANAGER

(MATERIALS)

Sr.OFFICER

(PURCHASE)

(MATERIALS) Sr. MANAGER (MATERIALS) Sr.OFFICER (PURCHASE) PURCHASE STAFF WORKMEN 54 Berchmans Institute of Management

PURCHASE STAFF

WORKMEN

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FUNCTIONS OF PURCHASE SECTION

Procurement against purchase order

Emergency collections

Bills settlement

Vendor development

Vendor rating

Contracts

PURCHASE PROCEDURE

i. PURCHASE REQUISITION

Procurement shall be effected against authorized /approved purchase order through online integrated sysem. The PR is processed online .The PR initial entry is made by the intending department through the system. The entered PR is to under go 1 st level authorization by concerned manager and 2 nd level authorization by concerned DGM and a 3rd level authorization by the concerned MC committee member. The PR are then converted to intents in the stores and processed through the system by purchase department.

ii. ENQUIRY

After the PR is converted to intents at stores, enquiry processed online in the prescribed format, is issued to active vendors by purchase department. Where such lists

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are not available in the vendor master, enquries are sent to vendors recommended by the user department or newly developed vendors.

Enquiry form contains following information

Material description

Quantity

General terms and conditions

Statement on QMS/OHSAS/SA compliance of the vendor.

iii.

COMPARATIVE STATEMENT/PROPOSAL

On receipt of quotation, comparative statement shall be prepared and sent to user departments. Comparative statement is prepared through the system and normally contains the following information

Indent no. And date

Enquiry no. And date

Vendors name

Materials description

Price basis

Delivery schedule

Payment terms

Total value for approval

iv.

PURCHASE ORDER

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Purchase order shall be issued on evaluation of comparative statement and approval of purchase by concerned personnel

P.O shall be issued only after getting appropriate approvals and will be signed by the DGM (materials).

Average internal lead-time shall be 15 days for routine items.

External lead time shall comprise of transit time and delivery lead time of the vendor

VENDOR EVALUATION

The following are considered in evaluating a vendor

VRC

Product catalogue /specification

Technical suitability of the product

Credentials of the vendor

Capacity, turn over, previous orders executed

Third party report

General financial and performance evaluation.

VENDOR RATING

In Binani zinc vendor rating is applicable only for purchase budget items with a yearly purchase value above 4 lakhs. And rating is done on a yearly basis.

Vendor rating is done for the following

Checking consistency of the vendor

Comparison of vendors

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Selection of appropriate vendors

Good relationship with the vendor

VENDOR RATING PARAMETERS

RIGHT TIME DELIVERY

CONFORMANCE OF PRODUCT SPECIFICATION

QUANTITY

QUALITY MANGEMENT SYSTEM

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4.2.3 STORES DEPARTMENT

VICE PRESIDENT

(COMMERCIAL)

GENERAL MANAGER

(MATERIALS)

Sr. MANAGER

(MATERIALS)

Sr.OFFICER

(STORES)

(MATERIALS) Sr. MANAGER (MATERIALS) Sr.OFFICER (STORES) STORES STAFF WORKMEN 59 Berchmans Institute of Management

STORES STAFF

WORKMEN

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The stores department in the Binani zinc is guided by the principle “Must have optimum inventory of what we need”. This means that the company should have sufficient inventory to meet the needs whenever it arises. The stores department mainly deals with consumables and spares. The raw materials and finished goods are dealt with separately at the production department. The raw materials are imported and minimum stock is maintained. And in case of finished gods one day’s production is kept as the stock.

INVENTORY MANAGEMENT SYSTEM

To eliminate rare and non-moving items binani zinc has adopted a systematic approach for managing their inventory.

STAGE I

Stage I deals with the classification of inventory their categorization, policy making for each category etc. the following are steps involved.

Identify appropriate parameters for classification like SDE, XYZ, Insurance spares, general purpose spares etc

Develop decision rules for each category

Meaningful analysis to check whether company is holding what it need

Disposal of obsolete and surplus items

STAGE II

The second stage deals with the creation of central information pool for managing inventory. The steps involved are:

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Data acquisition to create central information pool can easily be done in a networked environment

Dynamic cataloguing ensures traceability of all design or specification charges.

STAGE III

This stage depicts the parties for replacement of inventory, their purchase etc.

Policy for initial provisioning .

Regulation of future purchases.

Emergency purchase to be avoided totally.

FUNCTIONS OF STORES SECTION

1. RECEIPT AND INSPECTION OF ITEMS

The goods are received at the main gate .the security staff at the main gate physically verify the quantity by comparing it with P.O. after receiving the goods and after verifying the quantity and quality of material an inspection document is prepared at the stores and

sent to concerned user department. The user department conducts inspection and results will be passed on to stores. This information will be incorporated in final document namely G.R generated at the stores. GR is sent to the purchase department for payment.

2. STORAGE AND PRESERVATION

Materials are mainly stored in racks and bins. Each rack is coded in order to identify the

items. For instance the equipment required by the roaster plant are kept in one rack and rack is named R. items are stored in each shelf of that rack. Each shelf is numbered as

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1,2,3 etc, the storekeeper identifies items by the rack symbol. Items of common use are kept together. Chemicals are stored in separate room which requires particular range of temperature. Instruments are kept in separate dust proof room.

3. ISSUE OF MATERIALS

After the introduction of ERP system at Binani recording and documentation of materials are done online. Once the user department recognizes the need for materials it places an authorized requisition online. The storekeeper identifies the material at store after comparing the material code in the system with that in the rack. The material is issued to the user department and necessary updations will automatically dones by the system. FIFO method is followed in the issue of materials.

4. STOCK TAKING

Binani zinc follows an up to date stock taking system. stock taking will starts at 3:00 pm every day. The staff in the stores department verifies the stock and reports it to the officer in charge. In case the quantity of stock in stock does not tally with that in the records, causes for the same will be found out and necessary steps for rectification will be taken after reporting to the higher authorities.

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4.3 RESEARCH AND DEVELOPMENT DEPARTMENT

Sr. VICE PRESIDENT

(Operation and R&D)

DEPARTMENT Sr. VICE PRESIDENT (Operation and R&D) SENIOR MANAGER MANAGER ADVISOR OFFICER R & D OFFICER

SENIOR MANAGER

Sr. VICE PRESIDENT (Operation and R&D) SENIOR MANAGER MANAGER ADVISOR OFFICER R & D OFFICER ENVIRONMENT

MANAGER

ADVISOR

(Operation and R&D) SENIOR MANAGER MANAGER ADVISOR OFFICER R & D OFFICER ENVIRONMENT ENGINEERS R &

OFFICER

R & D

OFFICER

ENVIRONMENT

ENGINEERS

R & D

All major research is done at the R&D. when concentrate reaches the company R&D department takes samples and check the content of zinc in raw materials. R&D department has all the mini type of automatic advanced machinery. They do the process initially and identify the purity of the zinc.

R&D has three sections. They are:

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Development section

Assay section

Environmental section

DEVELOPMENT SECTION

The activities of the development section are as follows:

Zinc concentrate evaluation.

Voltage measurement and anode correction in cell house.

Acid to concentrate measurement.

Taking up of process/product development studies.

Preparation of control charts for critical operating parameters and analytical values.

ASSAY SECTION

The activities of the assay section are as follows:

Bulk chemical sampling and analysis.

Analysis of samples at different stages of process.

Analysis of products namely zinc ingots, cadmium, sulphuric acid.

Analysis of samples for recovery calculation and extraction efficiency calculation.

Preparation and issue of various reagents required by control laboratories in plants .

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ENVIRONMENTAL SECTION

The activities of the environmental section are:

Monitoring of effluents emissions.

Sending statutory reports.

Monitoring of hazardous waste quantity, storage and disposal.

Monitoring of various activities in the plant for the control of pollution.

Maintenance and improvement of environmental management system.

Benefits of R&D department

Treatment of zinc bearing secondary materials had improved capacity utilization.

Value addition and waste minimization.

Improvement in anode life.

Improvement in process efficiency.

Over all extraction of zinc has been considerably improved and purity of zinc ingots is considerably maintained.

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4.4 INFORMATION AND MANAGEMENT SYSTEMS DEPARTMENT

GENERAL MANAGER

(MANAGEMENT SYSTEMS)

SENIOR MANAGER

(INFORMATION AND SYSTEMS)

SYSTEMS) SENIOR MANAGER (INFORMATION AND SYSTEMS) DEPUTY MANAGER (INFORMATION SYSTEMS) DEPUTY MANAGER

DEPUTY MANAGER

(INFORMATION

SYSTEMS)

DEPUTY MANAGER

(INFORMATION

SYSTEMS)

DEPUTY MANAGER

(INFORMATION

SYSTEMS)

This is a service department in the company. It works on the oracle platform-ORACLE 2000. Binani zinc has a ERP SYSTEM with 135 PCs are connected to main server-IBM. The operating system used in the server is WINDOWS NT, the other systems are working WINDOWS VISTA, XP & ME. The department was formed in 1982 with a 5 PC's and the E R P System was established in the year 2001 and the system is upgraded every 5 years.

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The ERP system operates at Binani Zinc Limited does not use all the features of standard ERP systems. The company uses an integrated online system called CKN, all the functions and internal communications in the company are carried through this system. The company is following a punch card system and employees have to punch their cards while entering into the company and going out of the company. Managerial staff has to mark their attendance by login into the system. The leave application is also processed through online system. Various operations of the stores department like preparing purchase requisition, purchase order, inspection note etc are done with the ERP system

FUNCTIONS OF SYSTEMS DEPARTMENT

SENIOR MANAGER

Planning

Budget preparation

Procurement of hardware and software whenever necessary

Interaction with vendors

License administration

Maintenance of data base security

Server room safety and security

Study and analysis of latest development in IT and other related fields

Ensure timely completion of routine jobs

DEPUTY MANAGER 1

Maintenance of internet server and back up

Information support for purchase stores and marketing

Providing assistance in their day to day work

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Preparing MIS reports

Development and modification of software

Imparting training on Lotus notes, email and internet to users

Hardware maintenance and support including network, antivirus, etc

Network management and trouble shooting

DEPUTY MANAGER 2

Information support for HRD, OHC,Production, Engineering, etc

Back up of oracle data base

Providing assistance in their day to day work

Maintenance of asset register of computers and other accessories

ISO documentation and manage leave authorisation application

Development of new requirements for production and engineering

Imparting training on Basic Computers/ Windows/Office/IOS to users.

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4.5 FINANCE DEPARTMENT

VICE PRESIDENT ( FINANCE)

Sr. MANAGER (FINANCE)

DEPARTMENT VICE PRESIDENT ( FINANCE) Sr. MANAGER (FINANCE) DEPUTY MANGER OFFICER DEPUTY MANGER OFFICER NON-SUPERVISORY

DEPUTY MANGER

OFFICER

DEPUTY MANGER

OFFICER

NON-SUPERVISORY OFFICER

CASHIER

Finance Department covers all the financial functions of the company. The purchase of raw materials and its valuation, preparing bills for each purchase, bill preparation of all the sales, statutory and internal auditing, etc is done by finance department. The crew of this department is 9.

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The company is registered in two sites. If any changes occur in finance and bills preparation according to government rules, then they will mail it to the finance department and to the company. Each department has to prepare budget separately and send it to the Board of Directors and the department can perform only those things which area approved by them. The company has an interlinked system. So each department is connected and therefore the verification of bills and stores are very easy. Finally, the main important duty of finance department is to prepare balance sheet and other financial statements or the company.

FUNCTIONS

Purchase bill accounting: All the payments related to purchase are dealt here. It makes use of computerized cheque leafs issued from the bank to make payments to the suppliers, agents etc.

Sales accounting: Agents accounts related to stationary, printing, transportation etc are maintained here.

Stores accounting: It deals with the reception, issue and storage of materials.

Raw material accounting: The raw material imported from various places comes by ship to the port. The material is unloaded using barges to a space that is rented by the company for temporary storage of the material. The charges for the whole activity include the cost of the material which is based on LME price, despatch money, customs duty, handling charges at the dock plus the rent to the port.

HRD Package: The main purpose is to take care of the salary payment to the employees. It makes use of a payroll package in association with the HRD.

Corporate office setup: It takes care of the cash and bank operations and the statutory remittances like the sales tax, income tax, ESI, PF etc.

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Auditing: Auditing includes Annual Financial audit, Income Tax audit, Cost audit, Sales Tax audit. Each serves different purposes. It is done from professionals outside the company but monitored by the finance department. Internal audit is done on contract basis. Finance department helps them in giving the necessary information and data.

Budgeting: Budget allocation starts with the marketing department. The marketing department estimates the sales for a particular year. Based on that the budgets of the other departments are allocated as of how much raw material is to be purchased, how much should be spent on maintenance research etc. About 60% of the total cost is allotted to raw material, 20% to electricity and 20% to labour and administration.

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4.6 PROJECTS AND TECHNICAL SERVICES DEPARTMENT

VICE PRESIDENT(ENGINEERING & PROJECTS)

Dy. GENERAL MANAGER( PROJECTS)

& PROJECTS) Dy. GENERAL MANAGER( PROJECTS) Sr. MANAGER/MANAGER/Dy. MANAGER SENIOR ENGINEER/ENGINEERS

Sr. MANAGER/MANAGER/Dy. MANAGER

GENERAL MANAGER( PROJECTS) Sr. MANAGER/MANAGER/Dy. MANAGER SENIOR ENGINEER/ENGINEERS ASSISTANTS Projects and technical

SENIOR ENGINEER/ENGINEERS

Sr. MANAGER/MANAGER/Dy. MANAGER SENIOR ENGINEER/ENGINEERS ASSISTANTS Projects and technical Services Department is the

ASSISTANTS

Projects and technical Services Department is the department which leads to the technical development of the company. Introduction and execution of long term projects come under this department. Major repairs of the plants and other departments, green field project and expansion of the company are dealt by this department. The new project of the BZL is Waelz Plant, which will produce zinc from zinc concentrate by vapourising.

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FUTURE PROJECTS

Sewage Treatment Plant

ETP underflow filteration systems

Heat exchangers for acid wash section

New technology to produce zinc dust of superior quality

Modification in the neutral leach stream line

4.7 PRODUCTION DEPARTMENT

There are 4 mangers in the production department. Zinc is produced by hydro metallurgical route, which includes the following plants.

Roaster and acid plant

Leaching and purification

Electrolytic plant

Melting plant

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PROCESS BLOCK DIAGRAM

Study Report Binani Zinc Ltd 2010-11 PROCESS BLOCK DIAGRAM 74 Berchmans Institute of Management Studies MBA

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4.7.1 ROASTER PLANT

MANAGER

SHIFT IN CHARGE

CHIEF OPERATOR

OPERATOR

PLANT MANAGER SHIFT IN CHARGE CHIEF OPERATOR OPERATOR BOILER OPERATOR WORKMEN Zinc is present as zinc

BOILER OPERATOR

WORKMEN

Zinc is present as zinc sulphate in zinc concentrate. Zinc concentrate is roasted in a Lurgi fluidized bed roaster in the presence of air .In roaster zinc sulphide is converted to calcine and sulphur di-oxide. The roasting process is exothermic. The roaster reaction takes place at 900-950 degree.

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Calcine and hot laden gases are the roaster products. Calcine comes out as furnace overflow and it is cooled in a roto cooler, powdered in a ball mill ball mill and pneumatically conveyed to storage silos. The hot dust laden gas passes through a series of equipments for gas cleaning. The gas cleaning equipments are:

Waste heat boiler

Cyclone

Hot gas precipitator

Star cooler

Wet gas precipitator

The coal, cleaned gas goes to acid plant where sulphur di-oxide is converted to sulpur tri- oxide. And it is absorbed in absorbing acid to produce sulphuric acid.

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4.7.2 LEACHING PLANT

MANAGER

SHIFT IN CHARGE

CHIEF OPERATOR

SENIOR OPERATOR

PLANT MANAGER SHIFT IN CHARGE CHIEF OPERATOR SENIOR OPERATOR JUNIOR OPERATORS WORKMEN The aim of leaching

JUNIOR OPERATORS

WORKMEN

The aim of leaching is to dissolve maximum zinc and valuable elements such as cadmium from calcine obtained from roaster. The zinc in calcine is under easily soluble oxide form. Leaching is carried at neutral condition ie return sulphuic acid coming from ceellhouse and calcine are mixed in such a way that system never goes to acidic condition. During this process of neutral leaching hydrolysable impurities get hydrolyzed and removed. Iron present as ferrous gets oxidized with air. After leaching, the slurry

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goes to a thickener where sulphuric acid solution is separated from the residue. Impurities like insoluble sulphates and hydrolyzed impurities are removed through under flow of thickener and over flow is sulphuric acid solution with soluble impurities. The impure sulphuric acid solution goes to purification section.

PURIFICATION

In purification elements like copper, cadmium, cobalt, nickel etc, which are more electro positive than zinc, are displaced from the solution by the addition of zinc dust. There are two stages of purification.

Cold purification: This is carried at 55-60 degree by using zinc dust by a process called cold purification cake leach. Cadmium is replaced at this stage.

Hot purification: Filtrate after cold purification pass through a heat exchanger to heat up to 75 degree in hot purification. Fine zinc dust is added to sponge out nickel and cobalt. Hot purification cake is leached at controlled activity to recover excess zinc dust present and it is filtered. The over flow of clarifier, pure sulphuric acid solution is sent to cell house for electrolysis.

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4.7.3 ELECTROLYTIC PLANT

Dy. GENERAL

MANAGER

CHIEF OPERATOR

OPERATOR

PLANT Dy. GENERAL MANAGER CHIEF OPERATOR OPERATOR GENERAL WORKMEN WORKMEN(TRAINEES) The electrolytic plant

GENERAL WORKMEN

WORKMEN(TRAINEES)

The electrolytic plant involves the cell house. Here the purified zinc is separated as sheets by the electrolysis process. The faraday’s Laws of electrolysis is being followed in this plant. The main process of electrolysis is to produce special high grade zinc from the zinc sulphate solution received from the purification section.

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Electrolyte

:

Pure Zinc Sulphate

Anode

:

Lead

Cathode

:

Aluminium

There are 32 cells in cell house. Each cell contains 84 cathodes and 85 anodes. Cell feed is cooled in a cooling tower and sent to cells where DC current is applied from a pair of silicon rectifiers. Individual cell voltage is about 3.3V and current density is 450 A/m2. Zinc deposited cathodes are transported to shipping machine using cell crane. Deposits on each side of the cathode are stripped of using automatic stripping machine. The deposition time of the zinc is about 40 hours.

At the end the zinc will be deposited at the cathode and the manganese dioxide will be deposited at the anode. The cell house consumes about 4 lakh units of electricity per day. This amount constitutes of about three fourth of total power consumption of the company. Also certain reagents are added into the electrolyte in order to arrest the acid fumes formed out of the reaction

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4.7.4 MELTING PLANT

MANAGER

SHIFT IN CHARGE

CHIEF OPERATOR

OPERATOR

PLANT MANAGER SHIFT IN CHARGE CHIEF OPERATOR OPERATOR FORK LIFT OPERATOR GENERAL WORKMEN GENERAL WORKMEN(TRAINEES)

FORK LIFT OPERATOR

GENERAL WORKMEN

GENERAL WORKMEN(TRAINEES)

Melting Plant is the final step in the extraction process. And the final product is divided into 99.99% high grade zinc and 99.995% special high grade zinc ingots are obtained. Cathode zinc is melted in an induction furnace of 30 MT holding capacity and 8 MT/Hr melting capacity. Molten zinc is pumped from furnace to cast moulds where approximately 25Kg zinc slabs are casted and stacked with the help of stacking machine.

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4.8 ENGINEERING DEPARTMENT

The engineering department consists of three departments

4.8.1 ELECTRICAL DEPARTMENT

ADVISOR

of three departments 4.8.1 ELECTRICAL DEPARTMENT ADVISOR SENIOR MANAGER DEPUTY MANAGER ENGINEERS/OFFICERS CHARGEMEN

SENIOR MANAGER

4.8.1 ELECTRICAL DEPARTMENT ADVISOR SENIOR MANAGER DEPUTY MANAGER ENGINEERS/OFFICERS CHARGEMEN ELECTRICIAN

DEPUTY MANAGER

ELECTRICAL DEPARTMENT ADVISOR SENIOR MANAGER DEPUTY MANAGER ENGINEERS/OFFICERS CHARGEMEN ELECTRICIAN GENERAL

ENGINEERS/OFFICERS

ADVISOR SENIOR MANAGER DEPUTY MANAGER ENGINEERS/OFFICERS CHARGEMEN ELECTRICIAN GENERAL WORKMEN/TRAINEES 82 Berchmans

CHARGEMEN

SENIOR MANAGER DEPUTY MANAGER ENGINEERS/OFFICERS CHARGEMEN ELECTRICIAN GENERAL WORKMEN/TRAINEES 82 Berchmans Institute

ELECTRICIAN

DEPUTY MANAGER ENGINEERS/OFFICERS CHARGEMEN ELECTRICIAN GENERAL WORKMEN/TRAINEES 82 Berchmans Institute of

GENERAL WORKMEN/TRAINEES

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The main function of electrical department is the overall controlling and maintenance of the electrical problem of the company. Their main objective is to manage electricity energy effectively by creating energy forecasts, evaluating it with the present resources capabilities and formulating strategies, safeguard the investment and also keeping productive assets in working condition for effective utilization. As the company is very crucial to have continuous flow of current, there are three sources of electrical energy:

KSEB Edayar: There is a 110 KV substation at Edayar. There are 2 feeders there. The 110 KV current received at the company is step down to different voltages as per requirement.

Captive Power Plant: There are two diesel generators available each producing 5MW and 5.3MW respectively. This plant uses furnace oil for its functioning.

Turbo generator: The turbo generator available in the company produces .5MW of electricity. The turbo generator uses the steam produced at various stages during the processes.

Objectives

To manage electrical energy effectively by creating energy forecasts.

To maximize the utilization of assets.

To maintain the safety devices for protecting men and material.

To analyze costs, performance and technical factors.

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Factors Affecting Decisions :

Imposed power cuts by KSEB

Government and Board orders

Electricity tariffs and concessions

Maintenance functions carried out:

Running maintenance

Annual maintenance

Breakdown maintenance

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4.8.2 INSTRUMENTATION DEPARTMENT

GENERAL MANAGER

DEPUTY GENERAL MANAGER

DEPARTMENT GENERAL MANAGER DEPUTY GENERAL MANAGER MANAGERS DEPUTY MANAGER OFFICER INSTRUMENT MECHANIC GENERAL

MANAGERS

DEPARTMENT GENERAL MANAGER DEPUTY GENERAL MANAGER MANAGERS DEPUTY MANAGER OFFICER INSTRUMENT MECHANIC GENERAL WORKMEN

DEPUTY MANAGER

MANAGER DEPUTY GENERAL MANAGER MANAGERS DEPUTY MANAGER OFFICER INSTRUMENT MECHANIC GENERAL WORKMEN PROBATIONARY

OFFICER

INSTRUMENT MECHANIC

MANAGER MANAGERS DEPUTY MANAGER OFFICER INSTRUMENT MECHANIC GENERAL WORKMEN PROBATIONARY INSTRUMENT MECHANIC GENERAL

GENERAL WORKMEN

PROBATIONARY INSTRUMENT MECHANIC

MECHANIC GENERAL WORKMEN PROBATIONARY INSTRUMENT MECHANIC GENERAL WORKMEN/TRAINEES 85 Berchmans Institute of

GENERAL WORKMEN/TRAINEES

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Instrumentation department are concerned with the repairs and maintenance of all instruments and accessories in the company. Their main objective includes keeping the productive asset in working condition for effective utilization of assets and maintain safety devices and also analyze cost, performance and technical factors. Any false information in these items will cause high expenditure. So the workers must be careful. The crew of this department is 14.

4.8.3 MECHANICAL/MAINTENANCE DEPARTMENT

GENERAL MANAGER

SENIOR MANAGERS

MANAGERS

Dy. MANAGERS

MECHANICS (GRADE 1, 2, 3)

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PROBATIONARY MECHANICS

GENERAL WORKMEN

GENERAL WORKMEN TRAINESS

The total crew of this department is 39. The maintenance department is highly critical

in ensuring the smooth and continuous operations of the production process. It plays

a supportive role to the production department and in turn is supported by the

purchase and stores department.

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CHAPTER 5

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5.1 FINANCIAL PERFORMANCE OF THE COMPANY

Ltd 2010-11 5.1 FINANCIAL PERFORMANCE OF THE COMPANY From the above figures it is clear that

From the above figures it is clear that the company profit has come down considerably in the financial year 2008-2009. This is owing to the global economic recession and the fall in price of the commodity(zinc) worldwide. The company is working out effective methods to reduce the cost of production and breeze through this hard hit period. The company starts to make profit again from last financial year 2009-2010, through increased sales.

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5.2ANNUAL REPORTS

Study Report Binani Zinc Ltd 2010-11 5.2ANNUAL REPORTS 90 Berchmans Institute of Management Studies MBA

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Organization Study Report Binani Zinc Ltd 2010-11 91 Berchmans Institute of Management Studies MBA

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5.3 FUTURE PLANS

1. The company intends to acquire mines hence reducing the cost of the raw material.

The company now depends totally on imported zinc concentrate. The Company is going forward with its plans with regard to off-take agreements and financial participation in mines located in Australia.

2. Electricity can be considered as one of the raw materials for the company. The

company is the highest bill payer to the Kerala State Electricity Boeard ( a whooping 4.5 Crore Rupees per month). The company hence intends to build a power plant to meet its needs and reduce the production cost.

3. The company intends to explore further into the domestic market by increasing the

production. For this plant capacity needs to be increased. (At present the plant capacity is

38000 MT per annum ).

4. The Company hopes to increase its presence in the die-casting alloy segment and plans

to bring other value added products into the market.

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5.4 PORTERS FIVE FORCE ANALYSIS

Binani Zinc Ltd 2010-11 5.4 PORTERS FIVE FORCE ANALYSIS From the analysis when can deduce :

From the analysis when can deduce:

1. The threat of new entry is very low

2. Competitive rivalry is high; if imports go up considerably , it may also be a tough competitor

3. Buyer power is neutral

4. There is no major threat of substitution

5. Supplier Power is very low ; as there are a number of vendors

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5.5 SWOT ANALYSIS

The SWOT analysis is a management tool which gives us an idea about the strength, weakness, threat and oppurtunities of a company.

STRENGTHS

As BZL is the only one Zinc producing company in kerala. Its position is so high in the business history of Kerala.

It is the first Indian company having four international certifications i.e; ISO 9000

ISO 14001

SA 8000

OHSAS 18000 and follows 5S housekeeping practice.

The company is committed to environment protection and the Pollution control board has rewarded its pollution control efforts. It got excellence award for its pollution control efforts in 2009 from state pollution control board, among the large scale industries.

It is the first Indian company to produce special high grade Zinc. BZL has proved its efficiency in its productivity by acquiring 38000MT zinc per annum during the year only with 355 employees. The company is blessed by hard working and efficient employees. Here the labour turnover is very low.

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The company has a very cordial relationship with the employees union and there was no strike after 1996.

WEAKNESS

The main weakness of BZL is the absence of mines.

Another weakness of BZL is that its maximum production capacity is only 38000MT. It is nothing when compared to its competitor HZL

High dependence on imported zinc concentrate. Due to unavailability of zinc concentrate company was forced to close down for 131 days in 2006.

Under utilization of capacity. Only 59 % and 88 % of total capacity was utilized the past years.

OPPURTUNITIES

The demand projections for the coming years indicate a higher potential growth pattern for zinc consumption. Demand for zinc in India is expected to grow at 10- 12% in the coming years.

The demand for recycled zinc is increasing and the company can explore the secondary zinc market.

Company is going for vertical integration. The company is planning to set up three captive mines project. They are Basantgarh mines in Rajasthan, RBG Minerals Industries Limited, Ambaji mines.

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Berchmans Institute of Management Studies

MBA

Organization Study Report

Binani Zinc Ltd

2010-11

THREATS

The main threats or risks of BZL occurs from the external factors. The major external factor that can have a significance bearing on the company’s performance are

Fluctuation in zinc prices at London Market Exchange(LME)

Enhanced metal supply in market

Low treatment charges

Competition from secondary zinc manufactures

Import duty reduction of zinc metal.

Shortage in the availability of raw material especially zinc concentrate

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Berchmans Institute of Management Studies

MBA

Organization Study Report

Binani Zinc Ltd

2010-11

5.6 PROBLEMS FACED BY THE COMPANY

Reduction in Import Duty -The future expansion plans of Binani Zinc, is likely to be

affected by the reduction in import duty on non-ferrous metals such as zinc in the recent

Union Budget. The import duty had been brought down from 35 per cent to 25 per cent, and at the same time, no relief had been given on the import duties for the basic raw material such as zinc concentrate.

Power Tarrif Hikes - The steep electricity tariff revision by the Kerala Government is making the operations of Binani Zinc increasing unviable.

Shortage of Raw Material: The shortage of raw material is a major problem faced by the company. The company had to be shut down for more than hundred days because of this problem and it resulted in poor performance of the company.

5.7 SUGGESTIONS

The following are the suggestions to make the Binani Zinc Ltd perform in

better ways:

1) As the BZL has only one competitor in India, it has to take certain steps which will help to catch maximum market share. 2) The BZL has to draw a comprehensive plan to investigate the perceived threats. 3) As the prices are expected to remain volatile, the BZL must be more conscious in undertaking hedging activities as a protection against wide fluctuation in zinc prices. 4)Always make sure that the required concentrate is available .Also there should not be any wastage of money due to non-productive inventory.

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Berchmans Institute of Management Studies

MBA

Organization Study Report

Binani Zinc Ltd

2010-11

CONCLUSION

Binani Zinc Limited is a company which considers quality of its products and services, environmental control, safety and health of all its employees and social accountability as the prime management responsibility and strive for continual improvement. Although they have a formal organization hierarchy, the reporting structure followed is that of a very informal (which shows traits of matrix organization) type. At present the competition in the market is low, but the company should adhere to the plans to expand its reach in the market.

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Berchmans Institute of Management Studies

MBA

Organization Study Report

Binani Zinc Ltd

2010-11

BIBLIOGRAPHY

1. Annual report of Binani Zinc Limited for the year ending 31 st march 2010

2. Company personnel manual

3. http://binaniindustries.com/

4. http://www.crnindia.com/commodity/zinc.html

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Berchmans Institute of Management Studies

MBA