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Binani Zinc Ltd, Edayar

CHAPTER1: INDUSTRY PROFILE

1.1) ZINC
Zinc is essential for life. All living organisms need zinc as an important micro nutrient.
Zinc also imparts life-enhancing properties to other materials like steel. Thus modern
civilization needs zinc in a broad range of applications in construction, health, transport,
infrastructure, pharma etc. Zinc is also expected to play a vital role for a sustainable
future.

1.2) OVERVIEW
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 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.

1.3) USAGE
One metal that is showing a definite potential for a long lasting strong market is zinc. It is
a rapidly growing area and it should be watched in the immediate future as production is
expected to greatly be increased on account of demand. The need for zinc today is ever
increasing as nations around the globe become more developed. It is used in many
Binani Zinc Ltd, Edayar

industries and ways to extract it are constantly being enhanced. Its main use, about 50%,
is in the automotive industry where it provides anti-corrosion properties to keep cars from
rusting. It is also used in the construction industry (about 20%) for the same purpose.
Other industries that use this element in abundance is the steel industry, where it enables
iron to become stainless steel, die-casting accounts for another 15%, and other fields
include rubber, cosmetics, art, batteries, and pharmaceuticals. Putting it all together - it
means that the demand for zinc is high and it will continue to be. New contracts have
been made, amounting to millions of dollars, just for zinc in the production of new
batteries for military use.
Zinc mining is at an all time high and plans are being made in India, Africa, Australia, the
United States and other places to greatly increase production - they can't get enough to
keep up with the demand. New mining methods are being experimented with in Africa to
be able to obtain it even faster.

1.4) CONSUMPTION OF ZINC

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

• China
• USA
• Japan

1.5) MAJOR PLAYERS

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)
Binani Zinc Ltd, Edayar

• Korea (243000 metric tons)


• Netherlands (210000 metric tons)
• Finland (208000 metric tons)
• Mexico (166000 metric tons)
• France (143000 metric tons)
• Norway (133000 metric tons)
• 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)

The prognosticators are expecting a solid market for investments for many years down
the road. China and other Asian countries are working hard to increase their supplies of
zinc for their growing needs. Various funds are even getting into the hot zinc market. This
definitely looks like a growing strong market for you to invest in - while there is still
much growth soon to come.
Binani Zinc Ltd, Edayar

1.6) ZINC PRODUCING COUNTRIES

As mentioned above zinc has been produced in the world for quite a along time and today
also the zinc ores are being mined in more than 50 countries of the world. The pattern of
zinc mine production in the world is not a concentrated pattern as there are over 266
mines indulging in the extraction of zinc but only around 19 mines are able to stretch
their production over 100000 tons per annum. 80% of the zinc mines fall under the
category of underground mines, 8% relate to the category of open mines and the
remaining are a combination of both open and close mines. The total mine production of
zinc ore in the world accounts up to around 10008000 metric tons with 64% share held by
the underground mines. The major countries engaged in the zinc mine production are

• China
• Australia
• Canada
• Peru
• United States of America
• Namibia
• Ireland
• Sweden

1.7) PRODUCTION OF ZINC IN INDIA

India was one the first countries that started the process of extracting and smelting zinc.
Since that time, the country is producing this metal and is one of the oldest countries to
do that. Though, India is not a leading player in the production zinc but it is moving in
the direction to get self reliant in this context. India has approximately 4.3% share in the
total zinc smelter capacity in the Asia pacific region. The largest company, which was
indulged in the production of zinc, is a public sector company named Hindustan Zinc
Limited. But now, ever since the company got privatized, the Indian industry is
completely in the hands of the private sector. It can be said that the zinc industry in India,
Binani Zinc Ltd, Edayar

after privatization, is heading towards a major expansion programme. The major zinc
mines in India which were under the control of the company are

• Rampura Agucha mine


• Rajpura Dariba mine
• Zawar mine

The smelting plants in India engaged in the production of zinc metal are

• Chanderia Lead Zinc Smelter (CLZS) – Rajasthan


• Debari Zinc Smelter (DZS) – Rajasthan
• Vizag Zinc Smelter (VZS) – Andhra Pradesh
• Binani Zinc Smelter – Kerala

As India was one of the first countries to gain the knowledge of extracting zinc from zinc
ores and start the production of zinc metal, it should have been an important player in the
world zinc market but this is not the current situation. India’s reputation regarding zinc is
not significant as it just produces a small share of the metal in the world’s production and
is not able to satisfy its domestic consumption demand making it a net importer of zinc.

Zinc production in India was in the hands of the government initially as all the operations
in India relating to the metal were in the hands of a public sector company – Hindustan
Zinc Limited. It was the biggest company in India, which took care of zinc extraction and
its smelting process. But in April 2002, this company was privatized in favor Sterlite
group and after that the Indian industry is in the hands of private sector completely. The
current Indian demand for zinc stands at around 3.5 lakh tons that is fulfilled with the
help of domestic production and imports too. About 70% of the Indian demand comes
from the galvanizing sector. After privatizing the zinc sector it is expected that by 2010
the country would become self-reliant to satisfy the domestic demand. After that, India
may transform into a net exporter of the metal.
Binani Zinc Ltd, Edayar

1.8) 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.

1.9) MAJOR TRADING CENTRES OF ZINC

The largest zinc market in the world is the London Metal Exchange that affects the world
demand and supply for zinc significantly.Zinc is also traded in the Indian commodity
exchanges like Multi Commodity Exchange of India, National Commodity and
Derivatives Exchange of India and National Multi Commodity Exchange of India.
Binani Zinc Ltd, Edayar

CHAPTER 2: COMPANY PROFILE

Binani Zinc is the pioneer in the manufacture of high grade electrolytic zinc in India
since 1967. The project initially commenced as Cominco Binani Zinc, on 2nd August
1962, the technical and financial collaborative arrangement was with Cominco Limited a
Canada based world leader in non-ferrous metallurgical field. After the withdrawal of
Cominco Limited as the financial collaborators in 1991, in alignment with their
worldwide policy, the company was rechristened as Binani Zinc Limited. Binani Zinc
was destined to carve its niche in the domestic private sector, a turning point in Indian
Industry in saving considerable foreign exchange on the import of this vital white metal.

Binani Zinc Limited got into collaboration with M/s.UM Engineering of Belgium for a
modernisation & expansion programme. The ultra-modern zinc production plant with a
capacity of 30 kty is located across 110 acres of land in lush green, verdant Edayar
village, Ernakulam District, Kerala on the banks of serene river Periyar, 20 km upstream
from the Cochin port.

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, inclusive of a literate
workforce. The raw material viz. Zinc concentrate is imported and carried to Cochin Port
and unloaded at the fully integrated plant site to go through a fourfold techno savvy
refining process, with state of the art methodologies.

The company has an annual turnover of Rs. 266 crores. There are 96 management staff
and 240 non-management staff making it a total of 336 employees. The capacity of the
plant initially was 14000 Tonnes per annum. Over a period of time the capacity has been
increased to 20000 Tonnes in 1992 and 38000 MT in 2005. The total consumption in
India 425000 MT Per Annum. But the supply of zinc in India only amounts to 3,
58,000/annum, a major portion of which is supplied by Hindusthan Zinc (3,
Binani Zinc Ltd, Edayar

20,000/annum) and a small percent by Binani Zinc (38,000/annum). So the country has to
import zinc from different places.

2.1) HIGHLIGHTS

The company has many firsts to its credit

• It is the first Indian company to operate a customized zinc smelter designed for
100% imported zinc concentrate.

• The first Indian company to produce special high grade quality of zinc with
99.995% purity.

• The first to install high productivity, energy saving super jumbo cell technology.

• The first 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.

• Among the first to be recognized by the Department of Science and Technology,


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

• The first to be recognized by the Bureau of Industrial Costs and Prices as the Best
Zinc Plant in the country for the steps taken for energy conservation.

• First in India and, in Asia, to be certified by BVQI for the four international
accreditations viz., ISO 14001:1996, SA 8000:1997 as well as OHSAS
18001:1999 for installation and maintenance of Environmental Management
System, Social Accountability Management System, Occupational Health and
Safety Assessment Series respectively.
• The only Indian company having solid waste( jarosite) disposal facility,
confirming to EPA ( USA) standards.
Binani Zinc Ltd, Edayar

• Binani Zinc will also pioneer corporate sustainability reporting ( C.S.R ) on the
lines of the global reporting initiative (GRI )
• The company’s production has reached 38,000MTPA
• The company has access to the cheapest power sources, which will enable it to
become a low cost producer in spite of small capacity.
• The company has initiated global sourcing of raw material feed to ensure
diversified resources.
• Long term tie-ups with major suppliers of Zinc concentrate for assured supply.
• Binani zinc also has the capacity to treat concentrates of varying compositions,
giving it an unassailable edge over integrated producers.

2.2) BVQI CERTIFICATIONS


As mentioned earlier Binani Zinc Ltd is the first company in India and, in Asia, to be
certified by BVQI for the four international accreditations viz., ISO 14001:1996, SA
8000:1997 as well as OHSAS 18001:1999 for installation and maintenance of
Environmental Management.

2.2.1) ISO 9000: 2000 QUALITY MANAGEMENT SYSTEM


It is intended to demonstrate its ability to provide consistently a product that meet
customer and applicable regulatory requirements. It also addresses customer satisfaction
through the effective application of the system, including process for continual
improvement and the prevention of non conformity. The system is audited once in six
months.

2.2.2) ISO 14001: 2004 ENVIRONMENTAL MANAGEMENT SYSTEM


All activities and their environmental aspects and impacts are assessed and procedures
are laid down to prevent pollution. The system is audited in every six months by internal
and external auditors. Environmental objectives and environmental management
programs are set for officers at various levels to ensure continual improvement in
environmental performance.
Binani Zinc Ltd, Edayar

2.2.3) SA 8000:2000 SOCIAL ACCOUNTABILITY MANAGEMENT SYSTEM


To achieve global standards the company has established SAMS that is in conformity
with the requirements of social accountability standards. The social accountability
management system addresses the following:
Forced labour, Child labour, Health and Safety, Freedom of association, Right to
collective bargaining, Discrimination and Management systems.

2.2.4) OSHAS 18001:1999 OCCUPATIONAL HEALTH AND SAFETY


ASSESSMENT SERIES
It is a set of plans actions and procedures to systematically manage health and safety in
work place
Binani Zinc Ltd, Edayar

CHAPTER 3: PRODUCT PROFILE

The main product of Binani Zinc Ltd Edayar is Zinc. It comes in two varieties Super
High Grade Zinc (SHG) that is of 99.99% purity level and High Grade(HG) of 99.95%
purity level. The main product zinc is obtained after a series of chemical process. The by
products of these process are cadmium and sulphuric acid.

3.1) MAIN PRODUCT

Zinc- high grade (99.95%)


Zinc-super special grade(99.99%)

3.2) BY PRODUCTS

Cadmium
Sulphuric acid

3.3) MARKETS

The company is having 11 depots. They are at Mumbai, Calcutta, Damon , Banglore,
Silvasar, Chennai, Pondicherry, Baroda, Raipur and Tada. The company is exporting its
products to Turkey, Italy, UK, Korea. They have no credit sales.

3.4) THE MAJOR USES OF ZINC ARE :

Anti-corossion coating on steel( galvanizing).


Precision components.
Construction material.
Brass.
Pharmaceuticals and cosmetics.
Binani Zinc Ltd, Edayar

Micronutrient for humans, animals and plants.

3.5) MAJOR CUSTOMERS OF BINANI ZINC LIMITED

3.5.1) ZINC

• Eveready industries Ltd.


• Phonex industries Ltd.
• METADUST
• Ganga Jamuna Ltd.
• Southern metals and alloys Ltd.
• Jeep.
• Demorna chemicals Ltd.
• Sargam Metals Ltd.

3.5.2) SULPHURIC ACID

• Vyshak chemicals Ltd.


• Narmada chemicals Ltd.
• Hindusthan news print Ltd.
• Sud Chemicals Ltd.
• Reliance dye chemicals Ltd.
• Trishul chemicals Ltd.
• Coods agroLtd.

3.5.3) CADMIUM

• Anil metals company.


Binani Zinc Ltd, Edayar

• Southern metals market


• S.K chemicals Ltd.

3.5.4) 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.

3.5.5) WASTE
3.5.5.1) LIQUID
• The liquid effluent of 550 m3/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.

3.5.5.2) SOLID
• 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.
• Spent V2O5 catalyst from roaster and acid plant.
• Lead dross from cell house.
• Spent oil from captive power plant.
Binani Zinc Ltd, Edayar

CHAPTER 4: MISSION, OBJECTIVES AND STRATEGIES

4.1) MISSION
• To forge ahead as a world class organization in the core sector industry in India
and abroad.
• To explore all opportunities and enhance its stake holders value through ethical
practices.
• To relentlessly pursue in the new global movement for a “ customer driven,
quality oriented, socially conscious,” industrial co-operation
• To adopt, adapt, assimilate and integrate the technologies from global giants,
thereby leveraging value addition through deployment of technology into
products and services.
• To adhere to the highest standards in manufacturing, beyond the stringent
parameters of environmental stipulations.
• To pursue research and development activities diligently, consolidating on its
track record of innovations and breakthroughs in manufacturing practices on state
of art technology platform.
• To promote human values at the forefront and nurture its people with a deep
rooted sense of employee care, concern and deep rooted commitment to people;
people being considered as assets of high intrinsic value.

4.2) POLICY ON QUALITY ENVIRONMENT SAFETY HEALTH AND SOCIAL


ACCOUNTABILITY

• Binani Zinc Ltd. , Binanipuram is engaged in the manufacture and sale of zinc
metal and its by-products sulphuric acid and cadmium metal.
Binani Zinc Ltd, Edayar

• 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 strives for continual improvements.

• The company is committed to comply with social accountability standards, all


existing national and local applicable legislations including all legal and other
requirements pertaining to environment, occupational health and safety.

• The company will encourage waste minimization and re-utilization as well as


recovery of valuables from waste stream.

• The company will continuously strive for energy conservation in all its
operations and processes.

• 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 by ensuring the use of relevant personal protective
equipment.

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

• 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.

• The company will display its policy in its premises and also in brochures
published for the benefit of its customers, suppliers, employees and other
interested parties.
Binani Zinc Ltd, Edayar

4.3) 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 manthra 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
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.
Binani Zinc Ltd, Edayar

• 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.
CHAPTER 5: ORGANIZATION CHART
Binani Zinc Ltd, Edayar
Binani Zinc Ltd, Edayar

5.1) COMPANY HIERARCHY

Management Committee members


(Works Manager, VP- R & D,)

Assistant VP/GM/ Dy GM

Senior Manager/ Manager/ Deputy


Manager

Senior Engg/ Engg, Senior Officer/Officer

Work Men –Grade 1, 2. 3. 4


Binani Zinc Ltd, Edayar

CHAPTER 6: DEPARTMENTS AND FUNCTIONS

6.1) HUMAN RESOURCE AND OCCUPATIONAL HEALTH SERVICE

6.1.1) STRUCTURE

VP (HR & OHS)

GM (Administration) GM (HRD) CMO

Manager (Safety) Security Officer Manager (IR)

Dy. Manager(HRD)

Personal Officer Welfare Officer Management Service

Workmen Category

6.1.2) FUNCTIONS
The HR &OHS Department of Binani Zinc has two main functions- Human Relation
Management and Occupational Health Service.
The major functions of the HR department in Binani Zinc are divided into:
• Industrial Ralation
• Recruitment, Training, Appraisal.
• Personal Management
• Welfare Management
Binani Zinc Ltd, Edayar

• Management Service
• Security

Industrial Relations: Industrial Relation deals with trade union management,


contract labour management, compliance with statutory requirements etc. There are three
recognized trade unions have been registered with Binani Zinc. To be a registered trade
union in the company, the union should secure 20% vote of the total employee strength.
There are weekly meetings with the trade union members. Only the members of the trade
unions participate in the meeting. There is no grievance handling cell in the company. If a
worker has a problem, he has to first give a complaint to the trade union leader. If the
problem is not settled there, he can move to the next level i.e. concerned department head
and then to the HR Manager, Labour Court and finally the Supreme Court of India. The
system is designed according to the Factory Act of India. The statutory requirements like
PF, apprentice ship etc are also a part of IR.

Recruitment: For a new vacancy in the company the first preference goes to the
company employees. Through internal notification the eligible employees are given a
chance for writing the promotion test, or internal transfer. Promotion of internal staff will
be based on performance. If there are no eligible candidates inside, then the company
goes for recruitment from outside. External notification is given in leading English and
Malayalam dailies. In external recruitment as well, the first preference goes to the
children of the employees. The next preference is for the local people (people living close
to the company). For the past three years, there has been no new recruitment.
Induction: Each new employee is kept under probation for six months which includes a
one month induction program. Technical staff is inducted into the R&D department. After
the one month induction program they are moved into the respective departments.

Training and development: The Company follows different training schemes for
different category of employees.
Binani Zinc Ltd, Edayar

Management Training Programs: Management staffs are given one year


training after which they enter probation for the next six months. During the training
program, they are given a stipend of Rs.7000 per month. After the probation they are
absorbed into the respective department.

Workman Training: The workmen are given a training for 2 years in which they are
given a stipend of Rs.2000 per month the first year and Rs.3000 the second year. After
the probation, are absorbed into the respective departments.
Apprenticeship training: The Company facilitates apprenticeship training for one year as
per the Apprenticeship Act. It is categorized into three different types- Graduates,
Technicians and trade Apprentice. Graduates get a stipend of Rs.1930, Technicians who
are Diploma holders get a stipend of Rs.1400 and Trade apprentice (ITI holders) get a
stipend of Rs.800.

Paid Trainees: As a welfare function, children of employees holding professional


degree are given training in the company with a stipend of Rs.1500. But it is not
necessary to absorb these candidates into the company.
Unpaid Trainees: Diploma holders are given training, but they are not paid any stipend.
At the end of the training program a company certificate is issued.

Cross Functional Exchange Program: This facility is also for the


management staff to get familiarize with the departments apart from the department in
which he works. It is a 4 month training program. It is intended to enhance multiple
working skills in a person.
Knowledge and Skill Up gradation Program: This is a program in which high grade
employees belonging to the non-management staff are trained and promoted to lower
level management staff.

Performance Appraisal: The main objective of the appraisal is to identify if


employees need any further training, identify the eligible people for promotions and
salary increment. In case of trainees under probation, monthly assessment is done where
the quality and quantity of work, attendance, relationship with the other employees etc
Binani Zinc Ltd, Edayar

are assessed. In case of permanent employees a closed appraisal system is adopted where
only the respective department head and the HR department is present.

Welfare: All statutory functions according to the Factory Act like canteen, rest rooms,
drinking water, health centre etc are provided. Apart from these employees are provided
with uniform, footwear, umbrella, soap, towel, shoes, transportation etc are provided by
the company. Recreation room is equipped with various indoor games like table tennis,
chess etc. Various cultural events are held. Festivals like Diwali are celebrated where
various competitions for the staff and children are held.

Employee Motivation: To motivate the employees Best Performance Award is


given to the best employee.
Health Center: Specialist Medical Camp is held every month where free consultation is
provided for the employees, their family and local residents. A compulsory medical
checkup for all the employees is held annually.

Safety: The main objective of the department is to ensure safety activities and ensuring
statutory compliance, development of safety systems and implementation, taking care of
the housekeeping activities, ensuring conformance to safety regulations, accident
Investigation Analysis and remedial measures etc.
Binani Zinc Ltd, Edayar

COMMERCIAL DEPARTMENT

STRUCTURE OF COMMERCIAL DEPARTMENT

VP (Commercial)

GM (Marketing) AGM (Materials)

Sr. Mgr (Materials)


Deputy Sr. Manager
Manager (Marketing)
(Marketing) Purchase Stores
Officer
(Marketing)
Sr. Officer Sr. Officer
Purchase Stores

Sr. Sr. Purchase Sr. Sr. Sr. Store


Officer Officer Staff Officer Officer Officer Staff

MAJOR FUNCTIONS

COMMERCIAL DEPARTMENT

Marketing Purchase Stores


Binani Zinc Ltd, Edayar

MARKETING

STRUCTURE

VP
Commercial

GM (Marketing)

Dy manager Sr. Manager


(Marketing) (Marketing)

Officer
(Marketing)

FUNCTIONS

PROMOTION
Promotion of the product does not take place through media or by any other means.
Promotion of products in Binani Zinc takes place verbally through customers. A potential
customer can tell his friends and acquaintance about the quality product that they get
from Binani Zinc. So no addition charges are incurred an advertisement and
campaigning.

SALES
Sale of Zinc, Cadmium and H2SO4 are done directly from the Binanipuram office and
the depots in various places in India. Sale of Zinc and Cadmium is determined daily on
Binani Zinc Ltd, Edayar

the basis of level of production. Sale of H2SO4 is fixed in advance and only a specific
number of customers can be supplied. Sales is also carried out through sales agents. Both
the company and the agents keep in constant touch with the customers. Customer
feedback is collected every year towards the end of March and it is processed by June.
The purpose of this is to mprove the quality of customer service by 2% and to reduce the
complaints by 5% annually. The company has been successful in achieving its objectives
and the customers are happy with the quality of products , services and handling of
customer complaints.
PURCHASE
All the purchases in the company has to move through the purchase department be it raw
materials or spare parts. A purchase requisition form is generated for each purchase.In
case the amount and cost associated with the material is large, the purchase department
invites quotation from the suppliers by publishing the requirement in the newspaper.
After negotiations, the supplier who agrees to provide the material at minimum cost is
given the contract. Most of the materials are insured through the New India Assuarance
Company.
Binani Zinc Ltd, Edayar

STORES

STRUCTURE

VP Commercial

Dy. GM (Materials)

Sr. Manager (Materials)

Purchase Stores

Sr. Officer (Stores)


Sr. Officer (Purchase)

Sr. Officer Stores Stores Stores


Staff Staff Staff

Sr. Sr. Purchase


Officer Officer Staff
Binani Zinc Ltd, Edayar

Stores department makes use of an Oracle Based System to carry out its activities called
an Item Master. Item Master gives details about the items stored in the store like name,
code; stock in hand, stock in indent etc. The Purchase Requisition (PR) Module can be
made use to make the Purchase Request. PR is checked by the purchase department and it
deals with the rest of the formalities like raising enquiries, contacting the vendors and
finally preparing the purchase order.
Delivery Chelan (DC) is the most important document of stores department, which gives
the details like the name of the item, its make, quantity etc and no rates will be available
in this Chelan. The Invoice shows the total amount.

Once the goods are received at the stores department, the users are intimidated and they
can have an inspection of the item. Generally Inspection is done by the person who gives
the indent or by the users. Initially the items received at the stores is kept in a temporary
location and the inspection is done in the temporary location itself and once inspection is
over and the user or inspector gives ok , the GR is generated and Item Master is updated.
The user can take the items to the respective department where it is required or retained
in the stores department. Each item kept in the stores are given a specific location based
on the category each item falls in to. To move items from store house for different uses a
Warehouse Request (WR) is Issued and the database is automatically updated.
Binani Zinc Ltd, Edayar

STORES PROCEDURE

Receipt of Materials

 Verification of the
Automatic Indent for items stores
that reach the reorder level  Generation of SIR

Issue of material on  Inspection of items


production of MR  Accepted quality
 Identified by tags
 Stored in respective
location
 Costing of SIR
Binani Zinc Ltd, Edayar

OPERATIONS DEPARTMENT

STRUCTURE

Operations Dept

Production Maintenance and Utility

Mechanical Electrical Instrumentation


Maintenance Maintenance Maintenance

AVP(Electrical & Instrumentation)

Electrical Instrumentation DGM

Dy. Manager Dy. Manager Dy. Manager Dy. Manager

6 Technicians

4 mechanics
Binani Zinc Ltd, Edayar

MAINTAINANCE DEPARTMENT

STRUCTURE

Dy GM (Maintenance)

Sr. Manager Manager Sr. Manager (Leaching, Dy. GM


(Roaster, Acid, WS (Cell House, Purification, Annual (Utility)
& General admin) Melting) Contracts, Colony Repair)

Dy. Manager Sr. Engineer Sr. Engineer Sr. Engineer


(Operations)

Dy. Manager Sr. Engineer


(Mechanical)

FUNCTIONS
Maintenance and utility department deal with the maintenance of the various plants,
checking the working condition of each plant, checking the working condition of its
equipments, preparing budget, testing and inspection and preventing accidents,
providing monetary help to employees if they are injured doing working hours,
providing medical help etc. There are around 27 workers in this department.
Binani Zinc Ltd, Edayar

PRODUCTION DEPARTMENT

The production of Zinc takes place in four stages carried out in four different plants . The
four stages are:

Roasting: The concentrate, Zinc Sulphide, is roasted in a fluidized bed roaster and
converted to calcine (Zinc Oxide). Sulphuric Acid is produced as a by-product.

Leaching: The calcine is leached with spent electrolyte to get Zinc Sulphate solution and
subjected to two stages of purification; using state of the art purification technology
licensed from UM Engineering, Belgium. The process ensures removal of all traces of
impurities and pure Zinc Sulphate electrolyte is produced. Cadmium metal is recovered
as a by-product from the purification residue.

Electrolysis: The purified Zinc Sulphate Solution is electrolysed in a modern automated


Jumbo Cell House. The zinc thus produced is deposited on aluminium cathodes, which
are stripped in a cycle of 48 hours.

Melting: The stripped cathode zinc sheets are melted in an induction furnace and cast
into saleable ingots.
Binani Zinc Ltd, Edayar

INSTRUMENTATION DEPARTMENT

FUNCTIONS

 Instrumentation maintenance of the plant


o Preventive Maintenance
o Reactive Maintenance
 Modification/Improvement aspects (Minor)
(Major improvements/modifications done by Maintenance Dept)
 Indigenization of imported instruments –
Finding substitutes by developing similar models
Reduction in cost factor,
PH sampling system was developed according to company requirements
(Tailor made)
 General Administration
 Automation (Part of maintenance)
 Budget Preparation (for management systems)
 Log Report (Log report, done manually on a daily basis)
Binani Zinc Ltd, Edayar

ELECTRICAL DEPARTMENT

FUNCTIONS
The main functions of the department are to serve the electrical requirements of the
company, the four plants, the different departments etc. it also has additional functions of
running maintenance, preventive maintenance, annual budgets.

STRUCTURE

AVP

Manager Sr. Engineer Officer (Electrical)

Non Managerial Staff


Binani Zinc Ltd, Edayar

INFORMATION SYSTEMS DEPARTMENT

This is a service Department of the Company. It works on Oracle platform – oracle


developer 2000. Has a Mini ERP – Partially developed according to company
requirements . The company has 85 PCs connected to main server- 1 BM . Operaing
system for the server is Windows 2000, and for the other systems Windows XP, 98,
2000 etc . Separate ERP pack for each departments is maintained. The Department
wasformed in 1982 with a single PC and data entry machine . The ERP model was
established in the year 2001upgradation happens every 5 yrs .ERP was made by an
outside company in Kadavantra . There is AMC for all systems

STRUCTURE

VP

General Manager

Sr. Manager

Trouble
Shooting

Deputy Manager
Deputy Manager
Binani Zinc Ltd, Edayar

FUNCTIONS
 Maintaining Data
 Retrieval and storage
 Access permissions restricted
 Installs programs in various departments
 Timely up-gradation to meet increasing requirements
 SONIC wall- Security online
 MacAfee-auto update against virus
 Different slots for net surfing

NEW INTRODUCTION IN THE COMPANY

NAS: Network Attached Storage


 Automatic back up system
 One Terabyte capacity
 Done manually, needs huge investment for automation
Binani Zinc Ltd, Edayar

RESEACH AND DEVELOPMENT

The R&D wing at Binani Zinc, Binanipuram, has been recognised by the Department of
Science and Technology, Government of India. The efforts of the operationally proficient
and qualified R&D team are noteworthy for spawning in-house development process, like
treating the leached residues for recovery of metallics, separation of gypsum from the
electrolyte, effluent treatment, changeover from batch process to continuous leaching and
purification methods and a changeover in the method of purification. All these efforts has
saved substantial costs.

STRUCTURE

VP(R & D& Operations)

Sr.Manager (R&D)

Manager

Sr. Engineer Sr. Officer Officer

Sr. Chemist Chemist Lab Attendants


Binani Zinc Ltd, Edayar

FUNCTIONS

Research & Development has three sections


1. Development Section: This sections deals with projects for process modifications and
improvements and trouble shooting. There is no fundamental research going on in this
department. Only research related to process improvement are carried out here. Another
major function is the evaluation of raw materials, and its inspection for suitability in
process.
2. Assay Section(Quality Control Section) : This section deals with the analysis of raw
materials, finished products etc. Analysis has two main objectives-commercial payment
and analysis for process.
3. Environmental Section: This section deals with the environmental aspects like getting
approval from the pollution control board, inspections, analysis, monitoring and reporting
to pollution control board.
Binani Zinc Ltd, Edayar

FINANCE DEPARTMENT

STRUCTURE

AVP(Finance)

GM

Manager Manager Manager

Dy. Manager Dy. Manager

Officer

Non Managerial
Staff

FUNCTIONS
The company’s finance department was computerized in 1983. The major functions of the
department are:
1. 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.
2. Sales accounting: Agents accounts related to stationary, printing, transportation etc
are maintained here.
3. Stores accounting: It deals with the reception, issue and storage of materials.
Binani Zinc Ltd, Edayar

4. 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 chares at the dock plus the rent to the port.
5. 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.
6. 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.
7. 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.
8. 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 administer
Binani Zinc Ltd, Edayar

CHAPTER -7 SWOT ANALYSIS

Identification of the threats and opportunities in the environment and the strengths and
weakness of the firm are the factors which determine the course of action to ensure
growth of the firm.
STRENGTHS
1. Binani Zinc has always been in the forefront of the technical up gradation to
match the industry standards and has emerged as the NO.1 in terms of customer
delight with unwavering commitments and focus on quality.
2. Dedicated and recognized in-house R&D cell has provided necessary technical
support right from the basic engineering to the quest for operational excellence.
3. The competent managerial staff and workers in the company help in the smooth
functioning of the company.
4. Pioneers in manufacture of electrolytic zinc in India.
5. First Indian company to produce SHG Zinc.
6. First to install high productivity energy saving jumbo cell house technology.
WEAKNESS
1. Small unit compared to world standards
2. The production process is totally dependent on the concentrate. The scarcity or
non availability of the material might halt the plant work.
3. The company does not have mines of their own to extract zinc ore hence it has to
depend solely on imports from abroad.
OPPORTUNITIES
1. Strong customer base and brand image in market.
2. The company has diversified into cement manufacturing in north India and a
glass factory in Goa as independent groups. Hence there is much scope for
product diversification .
Binani Zinc Ltd, Edayar

THREATS
1. Competition from Hindustan Zinc Ltd.
2. Imports from Nepal.
3. Increased output from Hindustan Zinc Ltd has put tremendous pressure on prices
of sulphuric acid.
4. Cadmium prices on the downtrend compared to last years.
5. Fluctuations in LME.
6. Proposed steep hike in power tarrif in state.
7. Non Availability of concentrate.
8. Reduction in import duty.
Binani Zinc Ltd, Edayar

PROBLEMS FACED BY THE COMPANY

1) 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.

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

3) Shortage of Raw Material: The shortage of raw material is a major problem faced by
the company. The company had to be shutdown for more than hundred days because
of this problem and it resulted in poor performance of the company
Binani Zinc Ltd, Edayar

FUTURE PLANS

• The company is proceeding with the setting up of 2 Hydel power plants, with an
installed capacity of 10MW, for which necessary approvals have been given by
the State Government.
• In view of the adverse market for coal and consequent impact on cost of
generation, the company has deferred plan for setting up a thermal power plant.
• The company is also carrying out a series of debottlenecking exercises to
maximize capacity utilization.
Binani Zinc Ltd, Edayar

CONCLUSION

Demand for Zinc metal in India has been steadily increasing at well over 7-8% CAGR in
the last 5 years. The growth pattern is expected to shift higher trajectory of 10-12% n the
coming years. The company has a low attrition rate which is a positive sign of employee
satisfaction. Computerisation of the departments make the functioning of the company
more efficient and faster. The company also faces many problems like reduction in
import duty, hike in power tarrif, insufficient supply of raw material etc. The VAT scheme
will help speed up the process of unified tax regime in respect of sales tax. But th
company is expected to increase its productivity and operational efficiency with the
commissioning of the belt filter in the plant. So even though there are serious problems
due to the government policies, the overall performance of the company is good and t
will continue to do better.
Binani Zinc Ltd, Edayar

BIBLIOGRAPHY
WEBSITES

1. www.binaniindustries.com