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Submitted to Mahatma Gandhi University in partial fulfillment of the requirements for the award of the degree of

Submitted by SARATH P BABU Under the guidance of


Prof. SREENISH S.R Faculty Guide

Sree Narayana Guru Institute of Science and Technology (SNGIST)


I hereby declare that this report titled Organization Study at TRAVANCORE COCHIN CHEMICALS has been prepared by me during the academic year 2012 - 2013, under the guidance of Prof.Sreenish S.R, Department of Management Studies, Sree Narayana Guru Institute of Science and Technology. I also declare that this project report has not been submitted to any other University or institute for the award of any degree or diploma.

Place THRIKKAKARA Date 30-5-2013


CHAPTER I INTRODUCTION 1.1General Introduction The main aim of the organizational study is to acquire the knowledge regarding the functional as well as the management aspects of an organization. This project is an organizational study at THE TRAVANCORE COCHIN CHEMICALS LIMITED, COCHIN, KERALA. The period available for the study was 31day.

1.2 OBJECTIVES OF THE STUDY The objective of the organization study includes the following: To understand the organizational structure and the working of the various functional departments. To have an exposure to the work environment. To understand the overall performance of the company. To make an analysis of the organizations performance. To study the relevance of TCC on chemical industry field in Kerala.


It is an overall operation framework, which help to collect the required data. The methodology used in the study involves the collection data through primary and secondary means within the given time period. PRIMARY DATA It refers to the first data collected from primary sources .The primary sources of

data collection were direct personal interview with managers of concerned department,official staff and workers of the company. SECONDAY DATA Data which are not originally collected but rather obtained from published or unpublished sources includes: 1. Company records 2. Annual records 3. Official sites of the company 4. Internet The collected primary data and secondary data were used in the preparation of this organizational report.


The study was to get a general awareness of the functioning of the various departments and management of TCC Ltd. The period available for the study was one month. Since there were many departments, it was impossible to conduct a deep study on each department due to lack of time. There were many departments like operation, marketing, finance, human resource development, materials, engineering, project etc. The information from these department help to analyze the strength, weakness, opportunities and threats of the company.

1.5REASON FOR SELECTING THE COMPANY TCC was established in 1950 through pioneering efforts of Messers Seshasayee Brothers Travancore Limited. The company was originally started as Travancore of Mettur Chemicals .It was the first mercury cell plant and hence happened to be the first manufactures of Rayon Grade,caustic soda in the country. TCC was the biggest NaOH manufactures in India at that time.TCC is the only caustic soda manufacture in kerala.


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


In the international scene, the increased production of paper, aluminum, soap and detergent naturally leads to increased requirement of caustic soda in the world scenario. The green peace movement in seeking the phase out of chlorine usage,especially the CFC compounds. This has resulted in closing down of some of the chlorine industries in Europe and North American countries.With the drop in international production, the international price of causticsoda is steadily growing up. The caustic which was sold for 50$/ tone has grown up to the 300$/ tone now. The international markets are opening in thecontext of demand supply prevailing from time to time, situation of surplusand shortage are cyclical as a result of which international prices tend to behighly volatile. Though the demand for chlorine isgrowing fast, the demand ofcaustic soda is not so promising. Hence the units in the gulf and western countries are selling caustic soda at a cheaper price.

MAJOR COUNTRIES PRODUCING CAUSTIC SODA USA Russia India Canada France China Germany Japan


In India caustic soda is produced by electrolytic process. The manufacture of caustic soda started during 1940s. The growth was rather slow during 1960s but after that the growth picked up substantially. Today there are 38 industries manufacturing caustic soda. Of which 40 are organized sector and the rest belong to the unorganized sector. The total installed capacity of all these units put together comes to about 17,50,000 tones/annum. Indian Chlor-alkali industries follow membrane cell technology mostly. This is highly beneficial because cell membrane echnology is more efficient when compared to mercury cell technology. India was a net importer of chemicals in early 1990s, but has now become a net exporter due to implementation of many large scale petrochemical plants like Reliance, ONGC etc. and also because of tremendous growth of exports in sectors like bulk drugs and pharmacy, pesticides, dyes and intermediates.

MAJOR SOUTH INDIAN CHLORA-ALKALI UNITS Chemplast, Tamilnadu Chemfab Alkalies Ltd. Pondicherry Southern petro Chemical Industries Corp.Ltd.Chennai Kothari Petro Chemicals Ltd. Chennai Sree Royal Seema Alkalies & Allied Chemicals ,Andhra Pradesh BILT, Karnataka DCW Ltd, Metur TCC Ltd, Kerala


Caustic soda is one of the basic inorganic chemicals manufactured from common salt caustic soda; Hydrochloric acid and sodium hypochlorite are the products.In the Kerala state, TCC is the only Chlora-Alkali industrial unit and has a production capacityof 175 MT Caustic Soda per day. There are many small scale industries in the state which consumes caustic soda for the production of soap, detergents etc. Because of high transportationcost it is not possible to export caustic soda in large volume from the state. TCC is the only one chlor alkali unit in the state and it is employing environment friendly and energy efficient technology. Chlorine is a basic material required for water purification and without chlorine the water workers will not be able to supply good drinking water to the public. The Travancore Cochin Chemicals Limited, Udyogamandal is a State Public Sector Undertaking owned by Government of Kerala. Reflecting the quality policy of commitment and excellence. TCC has a good track record of profitable operation and healthy industrial relations. A heavy chemical industry engaged in the manufacture and marketing of Caustic Soda, Chlorine and allied chemicals, TCC is accredited with ISO 9001: 2008 certification.TCC is hence a mother company. The installed capacity of TCC is 175 tons per day caustic soda and the products are used in manufacturing of soaps, textiles, plastics etc.


HISTORY OF TCC LTD The Travancore Cochin Chemicals Ltd was established in 1951 and started commercial production in 1954 with an installed production capacity of 20 tones of caustic soda per day. The idea of establishing the unit was conceived by M/s Shehasayee Brothers the managing agent of FACT. This was for to supply HCL to FACT for making Ammonium Chloride utilizing Ammonia from their newly started plant. FACT and MCIC (mettur chemicals and Industrial Corporation) registered as a joint venture company under the name Travancore Mettur Chemicals (TMC) in 1950. The partnership was unable to complete the project due to shortage of finance.TMC has taken up their problem with the Travancore Cochin state government. By that time two other companies(Hindustan Industries Ltd.(HIL)& Indian Rare Earth Ltd(IRE)) weresetting up their plants at Udyogamandal with a view to receive chlora alkali products from TMC.As the stoppage of TMC could affect three major companies the Travancore Cochin State government gave financial assistance to TMC and the company was renamed as Travancore Cochin Chemicals (TCC) in 1951.Travancore Cochin Chemical (TCC) is the first unit in India to manufacture Rayon grade Caustic soda. The company has implemented a number of technical renovations to improve productivity of the plant. They now use membrane cell Technology for their production. At present TCC has production capacity of 175 TPD of caustic soda.

GROWTH OF TCC 1956- A continuous caustic fusion plant with a capacity to upgrade up to 20 toness of caustic soda per day was set up. 1958- A chlorine Liquefied plant was added mainly to meet demand from the newly set up DDT plant of Hindustan Insecticides limited, Ernakulam 1960- Production of caustic soda was raised to 30 tons per day. 1963- The caustic soda capacity was raised to new level of 40 TPD. The company established a new unit for the manufacture of sodium hydrosulphate with rated capacity of 30TPD. 1967- The capacity of caustic soda plant was raised to 60TPD as per third stage of expansion1970- A 60 TPD caustic soda CCF plant was set up along with its own water treatment plant. 1975- As the fourth stage expansion, a 100 TPD caustic soda plant was set up. This employed Mercury Cell Technology. 1976- The company set its own water plumbing and purification station. 1980- Export of commercial hydrochloric acid to Gulf countries 1983- Installed and indigenously developed plant to cover mercury from effluents 1987- Installed hydrogen- firing system in continuous caustic fusion plant 1990- Brine Decolonization units commissioned 1992- A Research &Development section was set up 1997- The company planned to setup a technology for the production of caustic soda in collaboration with ASAHI GLASS of Japan, with a capacity of 100 TPD , using Membrane Cell technology. 2000- The company set up a Brine purification plant. 2003- The company commissioned a new continuous Caustic Fusion plant and increased the membrane cell capacity to 125 TPD.

2005- The company commissioned a new caustic soda plant with a plant capacity of 25 TPD- M/s UHDE (I)2006- The company commissioned a new caustic soda plant with a plant capacity of 25 TPD. 2012- Joint ventur with ISRO- installed sodium sulphate plant.



CORPORATE OBJECTIVES 1. To produce and market chemicals such as caustic soda, liquid chlorine, hydrochloric acid carefully and in environmentally sound manner. 2. To make maximum profit from projects taken up. 3. To continuously upgrade the quality of Human Resource of the company and promote organizational development 4. To continuously improve the plant and operational safety and abide by the statutory pollution control standards 5. To ensure corporate growth by expansion and diversification. 6. To care the environment around. 7. To maintain optimum level of efficiency and productivity and optimum level of investment.

MISSION TCC is committed to supply quality chemicals at competitive prices to customers. Customer satisfaction, concern for environment and safety are their priorities. VISION Utmost level of conservation of all resources including energy. Cost effectiveness in all the operations.

Regular up gradation of technologies used in processing. Compliance with laws and statutory regulation.

POLICIES FOLLOWED BY TCC QUALITY POLICY We are committed to enhance customer satisfaction by providing products and related services complying with a continually improving quality management system. ENERGY POLICY Travancore-Cochin Chemicals is always committed towards the conservation of energy by all possible means. They strive for: Technological up gradation to reduce specific energy consumption. Conducting energy conservation studies including energy audit and adopting the apt measures for conserving energy. Using renewable energy sources to the extent possible Disseminating knowledge and information on energy conservation to our Employees. Low energy fuels also to be tried depending upon feasibility.

HEALTH AND SAFETY POLICY TCC is committed to provide every one of its employees and the related public . an accident-free and healthy environment in its efforts to manufacture high quality products at competitive prices. The company will comply with all statutory requirements in this regard. The company will provide a work environment in which identified hazards are controlled, if elimination is not feasible and will provide personal protective quipments wherever necessary.

Accident prevention is the direct responsibility of the Line Management and will be an important criterion for performance appraisal. Line Management will ensure that all safety measures are incorporated in the operating and maintenance procedures as well as in any process technology changes in the plant/infrastructure.

Consideration of health and safety will be given proper weight age in selection and deployment of the personnel. The company will ensure that health and safety aspects are given due consideration in decision regarding purchase of plant equipments, machinery and materials.

Every employee of the company shall perform his/her job adopting Safe and proper work methods and using appropriate Safety equipments understanding that their career advancement is linked with SAFE performance.

Contractors, sub-contract workers, transporters and visitors entering the factory shall be required to observe health and safety practices of the company in all their activities.

All contract jobs will be carried only through the laid down procedures with appropriate supervision. The company will carry out safety audits, risk assessment studies, emergency mock drills, and periodic assessment of health of its employees as well as status place hazards be identified, appropriately evaluated and effectively controlled to achieve this goal.

Appropriate training programs are designed and imparted to suit the requirements of different groups namely, customers, contract workers, drivers, cleaners.

Regular and periodic training is imparted to workers and officers in batches in accordance with a prepared schedule. Training on safety equipments and handling of hazardous chemicals is imparted to the employees.


The organizational structure of TCC is shown in the figure. The present organization structure of the company has proved to be effective in conducting operations at its optimum level. The staff structure encourages team work and good internal relationship. Unity of command is maintained throughout the organization.

ABBREVIATIONS MD - Managing director. DGMT - Deputy General Manager. PM - Personnel Manager.

OM - Operating Manager. EM - Engineer Manager.

PM - Project Manager. SM - System Manager. MTS - Manager Technical Service. MHRD - Manager Human Resource Development. CEPC - Chief Engineer Pollution Controller. CETS - Chief Engineer Technical Service. CES - Chief Engineer Safety. SETS - Senior Engineer Technical Service. SOQC - Senior Officer Quality Control. MCP - Manager Corporate Planning. CE - Civil Engineer.

DM(P&W) - DeputyManager Personnel and Welfare. CSO - Chief SecurityOfficer. FC - Finance Controller. DFC - Deputy Finance Controller. SAO(GA&F) - Senior Account Officer General Accounts and Finance. SAO(CASH) - Senior Accounting Officer Cash.

SAO(E&EDP) - Senior Accounting Officer. SAO(CO) - Senior Accounting Officer Costing. SAO(PF) - Senior Accounting Officer Provident. MM - Marketing Manager. SM - Sales Manager. SSO - Senior Sales Officer. MM - Material Manager. MP - Manager Production. MS - Manager Stores.

MIC - Manager Inventory Control. APO - Assistant Personnel Officer. CS - Company Secretary. ADVANTAGES Each individual in the organization is assigned a role , responsibility and necessary authority. Each person who is assigned to an activity must know his position, his role andrelationship with others. The activities of all individuals are coordinated and integrated into a common pattern in order to achieve the organizational objective. Organization is needed for the purpose of integration of diverse activities in a cohesive manner. The optimum use of human skill and efforts is achieved. It helps in smooth operations and smooth flow, thus avoiding bottlenecks, idle time and idle machine. DISADVANTAGES No self motivation. Alaway have wait for instructions.

Takes time to carry out orders and actions. 3.4 MILE STONES OF THE COMPANY TCC is in the forefront to adopt and incorporate the latest technology in its plants. Different innovative and modern schemes were implemented over the course of time. Hence TCC continue to be the competitive strength in the Chlor-alkali industry. With expanded plants and higher production capacity, TCC has come out to be the profitable public sector undertaking. TCC has bestowed with various awards for excellent performance with regard to production, productivity, energy conservation and environmental protection, which is considered as an award for commitment rather than for efficiency. 1981 -Best Performance Award for Safety in the State from Directorate of Factories & Boilers, Government of Kerala . 1988-89 -Best Pollution Control Award under group "Heavy Inorganic Industries" in Kerala, from Kerala State Pollution Control Board . 1989 -Award for Best Performance in Safety in India under "Chemical Industries" group from National Safety Council. 1989-90 -Prize for Productivity from Kerala State Productivity Council. 1993 -Best Performance award for Energy Conservation in the State of Kerala under group "Chemical & Fertilizers above 3000 KVA" from Government of Kerala 1994-95 -Best Performance award for the Productivity in the State of Kerala under group "Large Industries" from Kerala State Productivity Council. 1995-96 -Best Performance award for Productivity in the State of Kerala under group "Large Industries" from Kerala State Productivity Council. 1998 -Best performance award for Energy Conservation in the State of Kerala under group "Major Industries" from Energy Management Centre, Govt. of Kerala. 1998 -Performance award for Energy Conservation under group "Chlor-alkali Sector", Ministry of Power, Government of India.

2003 -Kerala State Energy Conservation Award (2000) in the category of Large Scale industry . 2005 -National Energy Conservation Award "Chlor-alkali Sector" 2008- Pollution Control award from Kerala State Pollution Control Board

3.5 PRODUCT PROFILE TCC produces wide varieties of products from Caustic soda to sodium hypochlorite .Various product of TCC are; 1. CAUSTIC SODA (NaoH) 2. CHLORINE (Cl2) 3. HYDRO CHLORIC ACID (Hcl) 4. CAUSTIC SODA FLAKES 5. SODIUM HYPOCHLORITE

1. CAUSTIC SODA (NaoH) Caustic soda is a basic alkali. It came into being in the latter halfof 19th century with the development of electrolysis. Caustic soda lye,obtained from membrane cell is a clear colorless, odorless and soapy liquid. TCC is producing two types of caustic lye of concentration 32% and 50%. USES d for preparing pure cellulose and for the preparation of alkali cellulose and for the production of viscose solution. neous matter.

. essing monazite and refining of Bauxite. 2.CHLORINE ( Cl2) Chlorine, a co-product obtained in the manufacturing process of caustic soda is an equally important basic chemical. It is a renowned water purifying chemical. It is a greenish yellow gas. Chlorine is sold after liquefying. Chlorine has got a pungent smell and liquid chlorine is amber in colour. USES 1. Producing insecticides (DDT, BHC etc) and pesticides. 2. In purifying drinking water and sterilizing sewage effluents. 3. For manufacturing PVC and allied co-polymers. 4. As a bleaching agent. 5. For producing a variety of organic chlorine compounds. 6. For upgrading titanium content in ilmonte. 3. HYDROCHLORICACID (Hcl) Hydro chloric acid produced by TCC is of high purity and finds application in number of chemical industries and it is yellowish green in colour. The Hcl produced have concentration 30.33%. USES

1. For the production of ammonium chloride and in the manufacture of phosphoric acid. 2.In monazite processing for the separation of rare earths as Chlorides from thorium. 3.As cleaning agent in galvanizing. 4.For hydrolyzing starch into sugar.

4. SODIUM HYPOCHLORITE Sodium hypochlorite, commonly known as soda bleach, finds its application in bleaching as a disinfectant and also in the extraction of rare earth elements. It is a pale yellowish green colour liquid. Soda bleach is the only branded product that the company is producing, brand name is Eko clean. USES 1. As a bleaching agent 2. As germicide and cleaning agent. 3. For sterilization.

5. CAUSTIC SODA FLAKES Caustic soda lye is concentrated to 98-99% NaoH and converted to flakes in a continuous caustic fussion plant (CCF). It is a white deliquescent solid in flakes form.

COMPETITORS OF TCC LTD TCC is the only chlor-alkali unit under public sector in India and it is the only chloralkali unit in kerala.Some of the major competitors are:

1. Atul ltd, Ahmadabad 2. Bilt chemicals, New Delhi. 3. Century rayon, New Delhi. 4. Chem., Fab alkalis, Pondicherry. 5. Chemplat sanmat ltd, Mumbai. 6. PCW ltd, Mumbai. 7. Grassing industries, Nagda, Madhya Pradesh. 8. Gujarat alkalis and chemicals, Gujarat. 9. Gujarat heavy chemicals, Ahmadabad.


Human resources is considered as the most vital asset of an organization. TCC has a well defined employee power which helps the organization to perform well in the markets. Human resource department is headed by manager (HRD). He is responsible only for training and development M (HRD) id reporting to Assistant General Manager (HR). MAIN FUNCTIONS OF HR / TRAINING DEPARTMENT a. Identifying training needs. b. Arrangement requirement training. c. Maintaining the training record. SCOPE

The procedure covers all aspects of training. Arrange suitable training for employees forupdating skills based on the identified training needs. Training advisory commitment is responsible for suggesting training requirements of thevarious department and disciplines. Formulating training programs on yearly basics. The committee propose a training calendar every year Training needs for the years are identified and recorded by the department the head. The details are handed over to the training department by respective department head. Training department does compilation of the identified training needs of the employees. Necessary training programs are arranged by training department to later the identified training needs of the employees.Training department organize training programs using internal faculty or engaging faculty from reputed organization. The training department in consultation with concerned department heads organizes in house training programs on special requirements. When employees attend training programs conducted in house. A feedback about the usefulness of the training is obtained and consolidated. The concerned department had evaluates the feedback from the participants after a period of 2-3 months to ascertain the effectiveness of the training program. Employees are also sent for training to other reputed institutors nominations for sending employees for training in such institutions outside the company are put up for approval of the appropriate authority as per the guidelines outside programs submits a feed back on the trainee undergone the training department.The achievement against annual training calendar is reviewed half yearly by department helps for the number of programs held, number of employees participated for each programs the highlights of training effectiveness, feedbacks..etc. The training department maintains a register on the training program attended by the employees. Training department maintains the format received from participants after getting it evaluated by the concern department head regarding the effectiveness of training. The managerial personnel of the company are imparted training to improve their managerial capabilities at the

HRD center of the company and outside institutes depending upon the needs identified by the head of the department.

GENERAL TRAINING In order to provide this type of training, one has to determine what is the trainees growth potential, up to what level to be done and requires evaluation of his present performance. NEED BASED TRAINING Need based training will be done on the basis of determining the level of knowledge and skill one requires for a job. Next is to find out how many employees have to be given this training. On the basis of these needs training is given to the employees. CUSTOMER TRAINING Customers are given training on handling of chlorine and other products in various situations. INDUCTION TRAINING It is the training provided to the newly recruited employees to familiarize them with the activities, rules and policies of the organization. It is also done to introduce the new employees to the other employees of the organization. TECHNOLOGY TRAINING Company provides advanced training for workers to cope up with the technological changes.Feedback is obtained from employees and effectiveness of the training program is ascertained after a period of 2-3 months. PERSONALITY DEVELOPMENT PROGRAMME

They are conducted on a regular time period for the development of both workers and managers. INTERNAL TRAINING Every month three day training program is held for workers. The workers education center,under the central labour industry conducts it. These programs are conducted on a contract basisand are recorded annually 20-25 workers from various sections are selected every month and 4-5 officers from WEC conduct the training programs. The topics covered include personality,management development, inter personnel relations, impact of globalization effectivecommunicationetc.Other in house programs are conducted by agencies like Kerala state productivity council. Insuch programs company can decide upon faculties and topics for training. During the installation of membrane cell plant, officers were sent to Japan for training. So on the job training is prevalent in all sections of the company. EXTERNAL TRAINING PROGRAM These programs are provided for workers conducted mainly inside Kerala and a few numbers outside Kerala also. The management does not keep aside a budget for training need. On anaverage TCC spends more than 11 lakh rupees on the training needs every year. OBSERVATION OF HRD HRD department organizes training programs using internal faculty or engineering faculties from reputed organization. TCC should see to it that training needs of the works, supervisors and executives are recognized and separate training program should be developed for each groups.

FUNCTIONS OF PERSONAL DEPARTMENT 1. Recruitment: through professional and executive employment exchange and P.S.C. 2. Manpower planning: ascertaining the number of vacancies 3. Welfare functions: including statutory and non statutory welfare measures. 4. Grievance handling: as per the provisions of Industrial Disputes Act & factories act 5. Maintaining company discipline: as per standing order act 6. Industry relations 7. Public relations 8. Job descriptions (Techniques) 9. Job specifications (Techniques) 10. Job analysis (Techniques) 11. Performance appraisal 12. Training 13. Staffing 14. Formulates and implements personnel 15. Wage and salary administration

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

SHIFT ALLOWANCE There are namely 3 shifts. Shift allowances to workers, who are working in shift are


Labour welfare measures in India can be classified as statutory and non-statutory. Statutory welfare comprises those provisions which are binding on employer by law. This relate to certain essential working conditions and standards of health statutory welfare measures provided are accident benefit, annual bonus, drinking water , lunch rooms, sitting facilities, storing and drying facilities ,health facilities and educational allowance. The non-statutory welfare programs provided voluntarily by employer and housing facilities, medical attendance schemes, group accident policy, production bonus, voluntary retirement schemes and performance appraisal. GRIEVANCE REDRESSAL Grievance Redressal committee is statutory. It is to be legally maintained. Trade unions are satisfied with the present condition. Hence in TCC Grievance Redressal Committee is not there,as here exist a good employee-employer relationship. Grievance Redressal committee consists of an experienced and efficient team of personnel department. And also the moral level of employee is very good.

TRADE UNION There is no labour unrest in the company for the past few years. An atmosphere of trust and mutual understanding is developed between management and labour union. TCC Employees Association is the only one union in TCC which is recognized. WORKERS PARTICIPATION IN MANAGEMENT TCC encourages its workers to take part in the management of the company. The workers are often consulted through their union while implementing major welfare programs of the company.In addition to this the workers are also included in some of the committee for taking management decision, which includes committees like. a. Canteen Management Committee b. Safety committee c. Grievance committee d. Tri-Party Committee e. Provident fund trust




Manager Materials is the head of the department. He is responsible for all functions related to purchase, stores and inventory control. Materials department is divided into three sections. 1. Purchase section 2. Stores section 3. Inventory Control section PURCHASE SECTION Purchase procedure: - Receiving MPR. - Evaluation of the MPR. - Inviting tender from various organization. - Evaluation of the tenders and prepare a comparative statement.

- Send tenders to the originator of MPR for recommendation. - Issue purchase order as per the recommendation of the originator. Purchase section deals with: - Purchase of stock items as required by inventory control. - Purchase of maintenance items as required by the maintenance planning and plant sections. - Purchasing of raw materials required for the process. - Purchase of bulk consumable for the process. - Purchase of demanded item.s - Payment against delivery through bank. STORES SECTION Store section deals with: - Maintaining a minimum stock of items required by various departments. - Issuing of stock items required by various departments according to the materials request. (MR). - Preparation of various reports like: Receiving report. Inspection reports. Evaluation of MPR for purchase of new items. Preparation of materials code system (10-digit system). INVENTORY CONTROL SECTION

Inventory control is an essential function of stores department. It helps to reduce cost and increase profit of the organization. Codification of material is done by manager inventory control. For controlling the inventory, certain levels of inventory such as maximum, minimum and re-order level is prepared. When the stock reaches the reorder level, purchase request is made. INVENTORY CONTROL The purpose of inventory control is to avoid surplus and security of materials. The inventories items are classified based on value contributed by each items depending on the cost of and turnover of materials. OBJECTIVES OF INVENTORY CONTROL - Avoid unwanted pilling up of inventory - Material identification to avoid duplication - To maintain records - To dispose scrapped items - To determine which and how much to replenish FUNCTIONS OF INVENTORY CONTROL Maintaining a minimum stock of items required by various departments. Preparations of various reports regarding inventory such as: Receiving reports Inventory ledger Inspection report Evaluation of MPR Preparation of material code system to verify items and for easy handling Fix various levels such as minimum level, maximum level, re-order level, damages level etc. of each items.

Calculate and minimize lead time Separate materials into Indian/import 4.3 OPEARATIONS DEPARTMENT










He fixes the monthly target of the product based on the market requirement. He is responsible for modification in the production process and responsible for the affluent discharge. He is the designated emergency controller during any hazardous incident of leakage & emission of toxic gasses/ fluid etc. DUTIES & RESPONSIBILITIES OF PLANT MANAGER Custodian of plant . He will plan production activities to meet the production of target set by the AGM (OP). He is responsible for the material consumption. He plans the shutdown activities and carries out maintenance work of the plant. He co-ordinates the operational functions with the manager of other departments for the smooth functioning of the plant. OBJECTIVES OF OPERATIONS DEPARTMENT Maximize production confirming to production specification. Optimizing the consumption of electricity and purification of chemicals. Maximize the production overheads. Maximize the availability of electrolysis for operations.


PLANTS IN TCC There are three plants involved in the electrolytic production process of the company. 1. AGC Plant This plant is designed by ASAHII GLASS COMPANY LIMITED,TOKYO, JAPAN. The plant was commissioned on 29thmay 1997. The productsare Caustic Soda , commercial Hydrocloric Acid, liquid Chlorine and Sodableach. The plant consists of 20 electrolyzes. The plant has 125 TPD CausticSoda production capacities. 2. UHDE 1 Plant The plant is designed by UHDE, Germany. The plantwascommissioned in 2005. The plant has a production capacity of 25 TPD of Caustic Soda. It consists of one electrolyze with 54 elements. 3. UHDE 2 Plant This plant is also designed by UHDE, Germany. The plant was commissioned in 2006. The plant has a production capacity of 25 TPD of Caustic Soda. It consists of one electrolyze with 54 elements. RAW MATERIALS USED Raw materials used in the production process in TCC are 1. Common Salt (raw salt) 2. Electricity 3. Water

TECHNOLOGY USED FOR PRODUCTION The technology used by TCC is Membrane Cell Technologywhich is environment friendly and energy efficient technology. PROCESS FOLLOWED The process followed in production by TCC is electrolysis of Brine. PROCESS DESCRIPTION Brine (solution of raw salt & water) saturation & purification process are common for AGC,UHDE 1 and UHDE 2 plants. STAYS IN THE PRODUCTION PROCESS 1. Brine saturation and primary purification Sodium Chloride or row salt is fed into the saturator using the bucket elevator, where it set mixed with the Chlorine decomposed,depleted Brine. This saturated Brine from the saturator goes to precipitation tanks A & B and a mixer tank where Barium Carbonate Soda Ash and Caustic Soda are added respectively to remove Sulphates, Calcium and Magnesium. Impurities as precipitates.the Brine along with the precipitates then goes to the clarifier where 90% of the precepts are allowed to settle. Theclarified Brine is passed through Anthracite filters where the remaining 10% precepts areseparated.HCL is added to the filtered Brine tank to convert impurities to ionic form. Brine is to beadmitted to the secondary purification system only after the desired purity level is attained.2. Secondary brine purification The secondary Brine purification system consists of our ion exchange filters. The primary purified Brine is passed through the Ion exchange filters where it undergoes Ion exchange process. Ion exchange materials are insoluble acids & bases, which when converted to salt remain insoluble.These ion exchange materials are used in columns in which the solutions containing ionic impurities like Calcium and Magnesium are in contact with the resin bed. The saturated resin is then regenerated to its original state by acid alkali solution. 3. Electrolysis The secondary purified Brine is passed through a heat exchange, fed to Brine head tank and is admitted to the anode compartments of the electrolysis. Dematerialized water is also admitted to the cathode compartment of the

electrolysis. Direct current (DC) supply is connected to the anode and cathode. During electrolysis Caustic Soda Lye is produced at cathode which is 32% concentration. Hydrogen gas is also formed at the cathode chamber. Chlorine is formed in the anode where the depleted Brine solution comes out.Caustic Soda is pumped into storage tank and Hydrogen and Chlorine gas goes to theirrespective treatment section. 4. Chlorine treatment & liquefaction Chlorine treatment and liquefaction involves cooling,washing filtration, drying, compression liquefaction, storage and liquid Chlorine filling in the cylinders, the Chlorine from anode chamber of the electrolysis is first cooled at 30 degree celcious with the cooling tower water. Final traces of salt is removed by using a wet Chlorine filter, it is then again cooked using chilled water. After this the Chlorine gas is divided into two streams for the HCL synthesis and for liquefying. The Chlorine for liquefaction is dried using 98% Hydrochloric acid in drying tower. The dried Chlorine is compressed using acid ring compressors. The compressed Chlorine gas turns into liquid Chlorine storage tanks. Chlorine for the HCL synthesis unit is fed by using chlorine blower. 5. H2 treatment and HCL analysis Hydrogen gas from the electrolyser is washed with water in washing chamber, cooled using tower water and admitted directly to Hydrogen blower,after separating the condensate. The Hydrogen gas is used for the HCL synthesis and also as a fuel in the CCF plant. Hydrogen for HCL synthesis is fed to the oven using Hydrogen blowers. Here it is burned in the presence of Chlorine. The resulting HCL gas is absorbed in the water flowing down the oven to produce 31% commercial HCL gas. 6. Continuous Caustic fusion It is done in CCF (continuous caustic fusion) plant. CCF plant is mainly for concentrating 32% NaOH lye to 50% NaOH lye and then to 98%-99% NaOH melts which is converted as flakes. The 32% NaOH lye is stored in the main storage tank, as a part of which goes for sale. The remaining part of 32% lye is passed through threeevaporators Ev1, Ev2, Ev3.In the first evaporator the Caustic Soda lye is heated using vapours generated in Ev2 and Ev3.the steam generated in Ev1 is then drawn by a vaccum pump through a condenser and thus Ev1 is working under vaccum and at 70-80 degree celcious. The outlet from Ev1 is 40% Caustic Soda lye which is passed through Ev2 where it is evaporated to 50%

Caustic Soda lye using 9 kg/-cm steam from boiler. A portion of 50% Caustic Soda lye cooled and sold. The remaining portion of 50% Caustic Soda lye is pumped to Ev3 where it is heated using heat transfer salt which is a mixture of 53% Potassium Nitrate, 40% Sodium Nitrate and 7% Sodium Nitrate. In Ev3 the 50% Caustic Soda lye is concentrated to 98%-99% Caustic Soda melt which is converted as Caustic Soda flakes in a flakers drum. 7. Soda Bleach preparation Excess of waste Chlorine cant be disposed as a waste gas. But it has to be absorbed in dilute Caustic Soda lye to produce Soda bleach. Thus the Soda bleach plant serves also as a pollution control system.A part of 32% Caustic Soda lye, chlorine is used for the preparation of Soda bleach. The excess Chlorine at the time of plant shutdown or startup and also from cylinder filling stationgoes for Soda bleach preparation, 32% Caustic soda lye is diluted using demineralized water. The solution is passed through two absorbing towers, where it reacts with Chlorine gas so as to produce Soda bleach. 4.4 TECHNICAL DEPARTMENT








There are two main sections in this department:

1. The Technical Service section The technical service department is concern with the monitoring of production process. This includes making a comparative analysis if any deviations are found. Reports are maintained on daily as well as monthly basis and internal as well as external basis. The reports are sent to all other departments. I. Daily report includes the following: Daily production details Material consumption details Sales Stock Power consumption Over time reporting etc. II. Monthly internal reports include the following: Production process report Material balance Chlorine utilization Raw salt analysis etc. III. Monthly external report includes reports to various Government department and other agencies, production calculation and reporting. Computerization & IT development All functional areas are fully computerized. That is function wise, all functions are fully computerized. But in depth wise TCC is trying to increase the depth of computerization. The software in use is clipper and paradox. The server configuration is IBM X 220 and the server capacity is 18GB hard disk running on Novel 4.11 operating system. The server class machinesare P3, 1 GHz, 128 MB

RAM, 18 GB hard disk plan to install Oracle based software for all the departments. Presently there are two Local Area Networks (LAN). One pertaining to financial data which is called financial package system and the other related to the materials package system and the other related to the materials managements, which is the materials management system. 2. Safety & Pollution control system The safety policy of the company states that: TCC is committed to provide every one of its employees & the related public an accident free and healthy environment in its efforts to manufacture high quality products with all stationary requirements in this regard. The company will provide a work environment in which identified hazards & controlled if eliminations not feasible and will provide personal protection requirements like gloves, file mask welding shield, safety shoes, helmets, safety belt, skin protective ointmentsetc .whenever necessary. Accident prevention is the direct responsibility of the line management and will be an important criterion for performance appraisal. Line management will ensure that all safety measures are incorporated in the operating and maintenance procedure as well as in any process technology changes in the plant. The company will ensure that health & safety aspects are given due consideration in decision regarding purchase of plant equipments machinery & materials. All contract job will be carried only through the laid down procedures with appropriatesupervision. The company will carry out safety audits, risk assessment studies, emergency mockdrills, periodic assessment health of its employees as well as status of environment &implement remedial measures. Employee, consumers & public awareness where necessary, will be imparted with the required education, training & retraining safety and health aspects related to the process and products.

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





TCC is the only chlor-alkali unit in Kerala and hence it is more or less a monopoly in Kerala market. However, nationwide there are around 40 competitors. TCC gives high importance for customer satisfaction. They maintain close contact products. Type of market is buyer market. Marketing department consists of two sections:

a. Office section

b. Issue section

All documentation works come under office section and all the work relating to sales come under issue section. TCC adopts marketing strategy according to the product nature, market situation, demand for the product etc. TCC currently has about 80% of the total market share in the state. Of the total production, 60% of the goods are sold outside Kerala and 40% within the state.

MAIN FUNCTIONS OF OFFICE SECTION Preparation of sales quotation, letters, amendments etc, maintenance of sales officers register books and other necessary information Preparation









correspondence with parties and follow up of routine and regular matters

Preparation of sales order, dispatch and delivery notes Up keeping of all files up to date

MAIN FUNCTIONS OF ISSUE SECTION Preparation of schedule of dispatch and actual dispatch Execution of sales offers Advising parties about the dispatch effected Maintenance of daily stock registers


1. Concerned with the office section of the department

2. Responsible for tender issue process.


There are about 40 companies in India which are producing the same kind of products that TCC in manufacturing. Of the 40 companies, 12 are concentrated in the southern part of India. All these companies are private sector companies except for TCC. Some of the competitors are:

1. Chemfab Alkalis Ltd, Pondicherry

2. Andra Sugar Ltd

3. DCW Ltd, Mettur

4. Kothari Petrochemical Ltd

5. Tamil Nadu Petro products Ltd

6. SPIC Chennai

7. Sree Royal Seema Alkalis, Andhra Pradesh

8. Chemplast, Mettur

9. Chemtab, Pondicherry


1. Kerala Water Authority

2. Hindustan Unilever Ltd

3. Hindustan Insecticides Ltd

4. Bharat Petroleum Ltd

5. Kerala Ceramics Ltd

6. Kerala Minerals and Metals Ltd

7. Hindustan Raw Earth Ltd

8. Steel Authority of India Ltd

9. Tamil Nadu Newsprint Ltd

10. Indian Oil Corporation

11. Indian Aluminium Company Ltd

12. Kerala Chemicals and Proteins Ltd

13. Travancore Titanium Products Ltd

14. South India Viscose Ltd

15. Karnataka Soap and Detergents

16. Hindustan Organic Chemicals Ltd

17. Grasim Industrial Ltd

18. Pigments India Ltd

19. Hindustan Newsprint Ltd

20. Binani Zinc Ltd


Whenever a company places an advertisement regarding the requirement of chemicals like caustic soda lye or flakes with the specification for the chemical payment terms, quantity required, validity required, the companies that are ready to supply viz., TCC, will send tenders to the required company. This is known as a tender document. In a tender document mainly two documents are specified:

a. Technical bid

This is the specification about the quality aspect of the product, how much quantity can be given within a period as specified by the customer company etc. These terms are well explained in the technical bid

b. Price bid

This is a part of the tender document which specifies the basic prices of the company products. The document rate is given for bulk purchaser, payment terms are also experienced. Along with the tender to the customer company, an attractive Earnest Money Deposit (EMD) is also offered. This deposit is for the purpose of assuring the customer company that if they accept TCCs offer, certainly the product will be supplies to the customer. The deposit will be refunded by the customer company after the purchase is made. The EMD is attached only in the case of bulk purchase. After accepting the offer placed by TCC, the customer company will place a purchase order. The purchase order explains the details of the product, quantity, price etc. Sales order is placed and will be verified by Deputy Marketing Manager. He makes arrangement in respect of supplying product to the customer. The acceptance offer is usually by selecting the lowest price.








Travancore Cochin chemicals limited has an efficient finance department headed by the finance manager and he is assisted by the deputy manager, finance. Finance manager is responsible for shaping the fortunes of the company, preparing budgets, raising funds, keeping different accounts etc. TCC is having management information system to assist the finance department. The finance department itself is divided into different sections like general accounts, costing bills, establishment and provident fund accounts sections each having its own functions.


Purchase bills passing and payments to suppliers Sales invoice recording Debt collection Budgeting and costing Statutory auditing Finance control Handle all auditing and taxes Sales accounting Generation and utilization of funds Finance book keeping and finalizing of accounts Treasury operation Cost record Management information system and co-operate planning

TCC has an exclusive PF trust for their employees. The company gives money to the trust. Trust invests this properly. Retirement benefits are issued from this fund. The companys liability towards gratuity to employees is covered by group gratuity scheme with the LIC of India.

Sources of funds

For efficient production and sale there must be adequate finance for fixed assets, raw materials to meet day-to-day expenditure. The company raise funds by mean of equity funds and borrowed fund. The share capital includes authorized, issued, subscribed and paid up capital. Subsidy has been received from DSIR and government of Kerala. Loans are obtained as term from IDBI and material loans from government of Kerala. 4.7ENGINEERING DEPARTMENT






Dy. MGR. (HT & LT)

Dy.MGR (E)




The Engineering department has been divided into four sections. 1. Electrical Department 2. Mechanical Department 3. Instrument Department 4. Civil Department ELECTRICAL DEPARTMENT There are two functions for this section. They are as follows: a) operations b) maintenance

The main function of the operational section is

The main function of maintenance dept is to provide assistance to project development of new project. MECHANICAL DEPARTMENT Following are some of the objectives of this department:

equipment handling.

INSTRUMENTATION DEPARTMENT The main functions of this section are as follows:

CIVIL DEPARTMENT The main functions of this section are as follows:





CE(PJ 1)

CE(PJ 2)



The new project that is going to start in TCC is the production of sodium chlorate. This project is a joint venture between TCC and VCLL/ISRO.

SECURITY DEPARTMENT Security department functions under the personnel manager with a chief security officer and around 50 staffs. The main functions of the department are to protect the company from external threats as a part of security, pass and badges are provided to each worker. The issue of pass is given by the P.M, and the duty pass is signed by him. SYSTEM DEPARTMENT Objectives of systems department 1. Website management 2. Up gradation, maintenance and changes are done by manager system.


SWOT Analysis STRENGTH Only Chlor alkali unit in the state Good record of physical and financial performance in the past. Qualified work force, brilliant engineers, managers and skilled workers. No strike reported for the last few years . Companys products are basic chemicals and are considered to be the building blocks of chemical industry. The company has 80% market share for its products in Kerala. The company is a feeding industry to other companies. Excellent management labour relation. Strategic location with no other competitors around at present. Availability of water in abundance as TCC is situated in the banks of river Periyar. Excellent transport facilities and proximity to national highway, railway line , seaport, and airports as well. Companys products are basic chemicals and are considered to be the building blocks of chemical industry. TCC is a pioneer in the chlor alkali market and has created reliability credibility among the customers.

WEAKNESS TCC is a public undertaking. The major decisions of the company have to be approved by the government which delays the implementations of plans and there by causing organizational inflexibility. The major weaknesses are;


state due to the availability of raw material within the state. There is a high price in the international market for rutile and related products. Economic development of the country may results in higher demand for the product especially for chlorine in near future . wer so obtained can be utilized for running the plants of TCC. Thus reducing the cost incurred on electricity. THREATS Competition from foreign countries High cost of production Higher in price of electricity The infra structure of the company is obsolete compared to others The import duty of central government is not fair and it caused periodic fluctuations in the price of the companys product.

CHAPTER VI Observation/ Suggestion OBDERVATIONS The major type of customer deal with TCC is pharmaceuticals, soap industries,insecticides, pesticides, paper industries and rayon industries. No major environment pollution has been reported for the past 50% years of operation. The strength of TCC is the quality of their products services and the delivery. Location preference, reference and quality are the major criteria for selecting manufacture. The company is depending heavily on electricity and around 60%of their product price is for this. SUGGESTIONS The company must give some motivation to the employee in order to increase the production. The company must take necessary steps to maintain the ratios at standard level. The company must activate the research and development cell in order to have new invention in this field. The company should conduct market research to f ind the movement of the products and to identify potential customers. One of the main raw materials is electricity which is an important factor of production of the company. So it better to go for a mini power plant of its own.


Annual Report -Travancore Cochin Chemicals LTD. WWW.TCCKERALA.COM