2.

1 COMPANY PROFILE
Hindustan Organic Chemicals Limited(HOCL) was set up by the Government of India in
1960 with the objective of attaining self-reliance in basic organic chemical needs. In fact ,this
was the first endeavor to indigenious manufacture of basic chemicals and to reduce country’s
dependence on import of vital organic chemicals.The company started as small chemical unit,
has today acquired the status of a multiunit company with two fast growing units and one
subsidiary unit.
It was expected that indigenous manufacture of these chemical intermediates will give
impetus to downstream industries resulting in setting up of chemical units and achieving self-
sufficiency for the country in this area. At present more than 500 units based on company’s
products have been set up all over the country which have not only succeeded in meeting the
goal of self-sufficiency but also entered the international markets earning precious foreign
exchange by exporting chemicals, dyes and drugs.

GOVERNMENT OF INDIA MINISTRY OF FERTILIZERS AND

CHEMICALS

HOCL
DEPARTMENT OF CHEMICALS
AND PETROCHEMICALS

CHAIRMAN AND MANAGING

DIRECTOR
DIRECTOR (FINANCE)
RASAYANI, MAHARASHTRA
DIRECTOR (TECHNICAL) (EXECUTIVE DIRECTOR )
DIRECTOR (MARKETING) KOCHI, KERALA (EXECUTIVE
GOVT. NOMINEES FROM DIRECTOR )
DEPARTMENT OF CHEMICALS HFL (MANAGING DIRECTOR)
AND PETROCHEMICALS
Fig (2.1) : Company structure

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2.2 OWNERSHIP PATTERN
Upto March 1992, government was holding more than 96% shares. But in 1994,
government disinvested in favor of mutual fund for banks and reduced holding to 80% and
further to 58.61%. Since government holds more than 50% it is a government company. The
other investors are mutual fund, public and institutional investors.

2.3 HISTORY AND GROWTH

Though many years, the western countries dominated the global chemical industry,
the first chemical operations which signify the birth of chemical industry took place in the
industry.

Long back in 700 B.C, some artisans from Middle East refined alkali and limestone
and prepared glass. After this, next were the Chinese people who invented a chemical
explosive named black powder. Then in 1965,some chemicals were produced for tanning in
Massachusetts. But all these were small ventures.

The first scale chemical industry came into existence in the 19th century. In 1823,
production of soda ash was started by a British entrepreneur. But massive advancement in
organic chemistry started in the last half of 19th century. These advancements enabled the
chemical companies to produce symmetric dyes from coal tar. This was successfully doing
in the 1850’s.

In the 1890’s, production of sulphuric acids started in Germany. In the same period,
chemical industries were also producing caustic soda and chlorine. Then in the 1990’s came
two revolutions in chemical products. The first one was Rayon introduction of which in
1914 changed the whole Textile scenario of the Textile industry. The second chemical
product was synthetic fertilizers which lead to Green Revolution in the agricultural sector.

Celluloid was introduced in 1869 as a result of the advanced production of plastics by

the chemical companies. The continuous research in organic chemistry ultimately resulted
in production of petrochemicals from oil in the 1920 and 1930’s. In the present world, this

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 petrochemical industry constitutes the main portions of chemical industry in many countries.
Research and Development on chemical products are even going on today and almost each
day the chemical companies are coming up with new technology and new products.

In the 1980’s, company diversified its activities.Kochi has been identified as a

growth centre due to the availability of raw materials ,manpower and other infrastructural
facilities.As a result ,the phenol complex at Kochi came into a reality.

2.4 LEGAL FRAMEWORK OF THE ORGANISATION

HOCL is a leader in chemical industry was incorporated in 1960 under the

ministry of chemicals and fertilizers.The company was established with the objective of
attaining self -reliance in basic organic chemical’s needs .Initially ,the company started as
small chemical unit ,has now acquired the status of a multiunit company with two fast
growing units and one subsidiary unit .

In April 1971,the company established their R&D unit at Rasayani in

Dist.Raigad,Maharashtra State.The unit was recognized by DSIR,Ministry of Science and
Technology,Government of India.The unit was set up to undertake development work to
utilize a number of by-products and to increase the profitability of operations by improving
the yields and raw material and utility consumption norms and to develop the processes
identified for long range growth.

2.5 VISION AND MISSION

2.5.1 VISION

The company’s vision is to produce and market basic chemicals efficiently and
economically in an environment friendly manner.

2.5.2 MISSION

The company’s mission is to maintain optimum level of efficiency and productivity in the
use of resources and secure optimum return on investment.
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2.6 OBJECTIVES

i.To maintain growth in turn over and to optimize return on investment.

ii .To maintain health of plant and equipment to realize all the objectives.
iii.To maintain international quality standards and optimum level of efficiency.
iv.To practice customer friendly culture.

2.7 PRODUCTS

1 ) PHENOL

Phenol is a versatile industrial organic chemical. The largest end use of phenol is in phenol-
formaldehyde resins used in wood additives as well as moulding and laminating resins, paints,
varnishes and enamels.

Phenol which is also referred to as carbolic Acid, or mono hydroxy benzene is used to produce a
wide variety of chemical intermediates, including phenolic resins, bisphenol-A, caprolactum,
alkyl phenols, adipic acid, plasticizers, etc.

Phenol is also used in the manufacture of preservatives, disinfectants, lubricating oils, herbicides
insecticides, etc.

2 ) ACETONE

Acetone is an important commercial solvent and raw material with wide usage in the
chemical explosives and lacquer industry. It is commonly used as a solvent for cellulose
acetate, nitrocellulose, celluloid, cellulose ether, chlorinated rubber, various resins, fats and
oils and an absorbent for acetylene gas. It is being increasingly used in the synthesis of a
number of chemicals such as diacetone alcohol, methyl methacrylate and certain resins,
pharmaceuticals and perfumes.

3 ) HYDROGEN PEROXIDE

Hydrogen Peroxide 50% w/w is an ecofriendly chemical product from HOC Kochi Unit with
wide application in paper and textile industries for bleaching purpose as a substitute for

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 hazardous chlorine. It is also used in electronic and metallurgical industries, effluent treatment
plants, sewage treatment and for removal of toxic pollutants from industrial gas streams.

2.7.1 MARKETS

The company has national market. It has two manufacturing units, viz. one at
Rasayani in Raigad, Maharashtra, which manufactures aniline, nitro-benzene, formaldehyde and
nitrogen oxide, and the other in Kochi apart from one subsidiary unit, viz. Hindustan
Fluorocarbons Limited, which makes PTFE, a plastic chemical and is situated in Medak District
of Telangana. The Cochin Unit was set up for the production of phenol, acetone and hydrogen
peroxide in 1987. Today ,more than 500 companies, some of whom compete in international
markets, are based on products manufactured by HOCL and earn precious foreign Exchange for
the Country.

2.7.2 TECHNOLOGY

R&D unit of HOCL was established in April 1971 at Rasayani in District Raigad,
Maharashtra State. It is recognized by DSIR, Ministry of Science and Technology,
Government of India. It was set-up to undertake development work to utilize a number of
by-products and to increase the profitability of operations by improving the yields and raw
material and utility consumption norms and to develop the processes identified for Long
Range Growth.

The specific areas in which R & D is undertaken and the future plan of action

i. Catalyst Development and evaluation, and

ii. Process Development and Process Scale-up activities in Pilot Plants.

iii.Other activities are focused towards Assimilation, Absorption and Improvement of

Imported Technology, and Recovery of by-products and their utilization through
value added products.

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2.7.3 MARKET PERFORMANCE

HOCL is the second largest producer of phenol and acetone .Currently,it has 22%
market share in national market.The company has ambitious plans to be a strong contender in
global market as well.

2.8 AWARDS WON

YEAR DESCRIPTION

Dujodhwala Endowment Award by All India Manufacturers Organisation

1977
(AIMO) for recovery of resorcinol from waste stream of MAP plant.

First prize for HOC's Annual Report (1978-79) in the 21st National Award for
1979 Excellence in Printing and Designing by DAVP, Ministry of Information and
Broadcasting, Government of India.

"Award in the “Public Services Advertisement Category” for HOC's

1980-81 Advertisement captioned “Eye Appeal” for its Community Vision Project, by
DAVP.

"National Society for equal opportunity of handicapped (NASEOH)'s Award for

1983-84
being an ideal employer.

Indira Gandhi Memorial National Award for Excellence in Public Sector

1987-88
Enterprises.

1989-92 Productivity Award from Kerala Productivity Council.

First Prize in the chemical sector for Energy Conservation for the year 1991-92
1991-92
by Government of India, Ministry of Energy, Department of Power.

Wisitex Foundation International Award Life 2000 (1994) for National

1995
Excellence in Industrial Pollution Abatement.

First prize award from Kerala State Pollution Control Board among large scale
1996-98
industries in making substantial and sustained efforts in pollution control.

1996-98 Prize for Energy Conservation in Chemical Industry by Ministry of Energy,

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 Government of India successively for two years (1996-97, 1997-98).

National Energy Conservation Award, 1999 – First Prize in Chemical Sector by

1999
Government of India, Ministry of Power, New Delhi.

National Energy Conservation Award, 2000 – First Prize in Chemical Sector by

2000
Government of India, Ministry of Power, New Delhi

National Energy Conservation Award, 2001 – Second Prize in Chemical Sector

2001
by Government of India, Ministry of Power, New Delhi.

Award from Dept. Of Factories & Boilers,Government of Kerala for Outstanding

2008
Performance in Industrial Safety.

2009 Safety award from Govt of Kerala Dept. Of Factories & Boilers.

Safety awards 2010 for outstanding performance in Industrial safety(First Prize)

2010
from Dept. of F&B Govt of Kerala.

Table 2.8 :AWARDS WON

2.8.1 ISO CERTIFICATION

HOCL, Kochi has been certified for quality management system(ISO 9001:2008)by Bureau
Veritas Certification(India)Pvt Ltd and ISO 14001:2004(Environmental Management System).

2.9 FUTURE PROJECT

The cabinet committee on economic affairs ,chaired by prime minister Narendra

Modi ,has approved a restructuring plan .The restructuring plan involves closing down the
operations of all the non-viable plants at rasayani unit of HOCL,except the Di-Nitrogen
Tetroxide(N204) plant which is to be transferred to ISRO on ‘as is where is ‘ basis with about 20
acres of land and emplo.The financial implications of the plan is Rs .1008.67 crore ,which is to
be met partly from sale of 442 acres HOCL land at Rasayani to Bharat Petroleum Corporation
Ltd.(Rs 618.80 crore) and the balance (Rs 365.26 crore) through a bridge loan from the
government.

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2.10 COMPETITORS

The major competitors are :

i.Schenectady Herdilla Ltd, Mumbai.

ii.Gujarat Alkalies And Chemicals Ltd, Baroda .
iii.National Peroxide Limited,Maharashtra.

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