The Kerala Minerals and Metals LTD

THE KERALA MINERALS AND METALS LTD
INTRODUCTION
Internship is a period of work experience offered by an organization for a limited period of time
.It consists of an exchange of service for experience between Intern and the organization.
Typically an Internship looking to gain relevant skills and experience in a particular field.
Internship is an opportunity to observe, learn and understand the corporate culture, acquire
knowledge and skills in the respective fields which helps the students in their future career
development. Internship is an career stepping stone MBA aspirants need to recognize this fact
sooner than later. It is an opportunity for career potentials to gain experience and receive free
training. Internship study was conducted in Kerala Minerals And Metals Limited, Chavara. The
company is located at chavara , Kollam district Of Kerala, India.
Kerala has one of the richest and one of most extensive heavy mineral deposits in the world.
These deposits stretch along the seacoast between Kayamkulam and Neendakara, a trait
generally known as Chavara coast .The main constituents in the deposits are ilmenite, Rutile,
Leucoxene, Silimanite ,Zircon and Monazite. The first three Ilmenite ,Rutile and Leucoxene are
titanium bearing minerals and hence used for the manufacture of titanium dioxide pigment and
titanium sponge metal. Kerala Minerals and Metals Limited is Kerala Government undertaking
where titanium dioxide pigment is produced from the raw sand is obtained from the chavara
coast by a series of chemical treatments. KMML is the only company in the world where the
plants of mineral sand mining, separation, beneficiation and tio2 production are erected under a
single roof of KMML produces mainly five grades of Tio2 pigment. Now the capacity of the
plant has been increased to about 40000 TPY.
The internship enhance or expand the student knowledge of a particular area of the operations
management. It expose the student to professional role models or mentors who will provide the
student with support in the early stages of the internship and provide an example of the behaviors
expected in the interns workplace. It will help in assisting the students development of employer
–valued skills such as teamwork, communications and attention to detail. The Internship at
KMML provides a valued study on operations management.
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UNIVERSITY INSTITUTE OF MANAGEMENT KOLLAM
OBJECTIVES OF INTERNSHIP:-
1. To get knowledge about the functional and managerial aspects of KMML.

2. To familiarize with the production processes in KMML.
3. To analyze the functions of Materials department and Inventory control of KMML.
SCOPE OF INTERNSHIP
An internship is an opportunity for a student to experience professional development under an

actual working environment. Scope of work is to indicate the type of activities in which the
intern will likely to engaged. Internship experience plays a vital role for every student to
implement their theoretical knowledge and get a practical knowledge from any organization.
I have chosen “The Kerala Minerals and Metals Limited”, situated in Chavara, Kollam for my
internship. It is a well reputed public sector undertaking in Kerala. Kerala has the richest mineral
deposit in the world. KMML provides the insight of the scope of mineral industry in India,
especially Kerala. Through this internship I have gathered knowledge about the organization and
also I have made an attempt to know about the processes in the production and materials
department. As inventory and production process is inevitable in an organization, gaining
experience from an organization like KMML improved the practical knowledge as well as the
theoretical knowledge.
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COMPANY PROFILE
KMML was established by a private entrepreneur in 1932 as F.X Pereira and sons (Travancore)
Pvt Ltd . Around the year in 1955 the company met with heavy financial stringency and huge tax
average that they could not afford. During 1956 this concern was taken over by the state
government and was placed under the control of its industries department. The industrial
development of Kerala runs the company from 1956 to 1972 under the name of M/s .F. X.
Pereira & sons Pvt Ltd in the month of April 1972 the government of Kerala took over all the
assets and liabilities of the company and rename as The Kerala Minerals and Metals Ltd. Thus
the KMML was started and registered in the year 1972 with the following broad objectives :-
(1) Optimum utilization of mineral wealth found along the sea coast of Kollam-Alappuzha
Districts.
(2) Large scale generation of employment in the state in general .
(3) Overall growth and development of the local area in particular and the state in general.
Initially the company had only one unit know as Mineral Separation plant. In 1974 the
company
Received an intent for the production of titanium dioxide (tio2) pigment using chloride process.
In 1976, KMML registered its second unit known as Titanium pigment plant. Its construction
started only in 1979 and total capital cost was 144 crore. The plant was commissioned in
December 1984.
KMML become the first and only integrated Titanium dioxide plant in the world. KMML was
commissioned in 1984 it was not able to efficiently due to technical problems. Due to these
problems the company has to suffer an accumulated loss of more than the capital investment
over a period of 8 years. In the above circumstances it was in 1991 that the entire personnel of
KMML from top management to down to the lowest workers started to think individually and
collectively about the requirement of a turn around. A strategy was planned and implemented
with the whole hearted support of the workforce during the year 1991-1993.It started to yield
results and the company attained the breakeven level by 1993.From 1993-1994 onwards the
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company started to make profits and wiped out the entire accumulated loss within a few years
and repaid the long term loans. Thereafter, it is the story of success and growth.
Vision of KMML
“Be a world class producer of mineral sand based value-added products.”
Mission of KMML
 To become the nodal agency for promoting and establishing mineral based industries in
the state to ensure value addition and effective and controlled exploitation of the mineral
reserve.
 To develop adequate supply base for the services and utility for development of the
mineral based industry.
 To create more awareness about corporate social responsibilities for chemical industries
in the state.
 To become the leader in controlling Green House Gas Emission so as to promote the
concept of Green House.
Objectives of KMML:
 To exploit the mineral wealth abundantly available in the coastal belt.

 Large scale generation of employment in the state.
 Overall development of local area in particular and state in general.
 To improve shareholders value
 To evolve and implement ecofriendly policies, programs and project within AERB
regulations.
 To strive for optimum value addition through obtaining technology for improving
international market share and for growth in domestic market.
 To manufacture value added product like Titanium dioxide and Titanium metal through
chloride route technology.
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ABOUT THE INDUSTRY/COMPANY
Industry profile
1. World scenario
The use of Titanium Dioxide is very vast and it has been produced in various parts of the
world at different levels which includes Multinational companies as well as small-scale
companies .It is estimated that world’s total installed capacity for Titanium Dioxide is of the
order 4.22 to 4.38 million tons per annum. The overall average capacity utilization of
Titanium dioxide industry is 90% to 91%.The higher demand in global market attracts
various firms to enter into the Titanium Dioxide manufacturing.Traces of black magnetic
sand unfamiliar to him in manacine parish (UK) and he The credit for recognizing the
existence of Titanium goes to Rev. william George who found named it Manacine.
subsequently Kiwin recovered a new white metallic oxide and called it Manacine. But it
was M.K. H. Laplast who discovered titanium .he examined Rutile and identified it as an
oxide of a metal and named it as Titanium after Titan of Greek Mythology in the
year1775.The first commercial product of Titanium was an alloy additive to steel when ferro
alloys were developed in USA in the year 1906.
Titanium dioxide is far more stable than any other pigment. Its perfect non toxicity &
chemical inertness make it an ideal choice as a white pigment. Titanium Dioxide enjoys a
large market by any measure Historically the market has grown in volume at 3.5% annually
to reach close to $8 billion in production value today. In the last decade the demand has
slowed down to 3%and it is expected in the next decade growth will be in the range of 2.5-
3.5 looking over the next 20 year at least some new Titanium Dioxide pigment will be made,
though most of the industries additional capacity will come from expansion .Pigment
consumption rose sharply in western Europe and Asia/pacific (excluding Japan) during the
year 2000.In east Asia notably china, Taiwan and South Korea continued as a path of strong
recovery 2000. East Asia is presently the most attractive region in the world for Titanium
dioxide.
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National scenario
The Indian reserves of Illuminate and Rutile are expected to be around 600000 units/year
and most important sources are South Kerala and Tamil Nadu. Beach reserves are also seen
in Ratnagiri (Maharastra), Ganjan(Orissa) and Sreekakulam (Andhrapradesh).The reserves
in Kerala and Tamilnadu are about 20 million.
This information throws light into the possibilities of new manufactures and competition in
Titanium Dioxide Industry I the Indian Market. The demand for the new manufactures will
be more, with the increased demand for the paints, plastics, rubber etc. Currently there are
four units in india engaged in the manufacturing of Titanium Dioxide pigment (Rutile
&Anatase) with a total combined capacity of 44560 metric tons per annum. These units are:-
 Kerala Minerals and Metals Ltd Chavara, Kollam.

 Travancore Titanium Products Ltd, Trivandrum.
 Kilburn chemicals Ltd, Chennai.
KMML is the only unit producing Rutile grade Titanium Dioxide pigment in India with
an installed Capacity of 30000 tons per annum. India is having a vast area of coastal region,
which is addition to many other advantage is also richly endowed with the important mineral
deposits. Titanium is mainly used in paint Industry .It is also used in case of links, plastics,
textiles, ceramics etc. Although utility of such extracted minerals and metals is unlimited,
the sources are limited .At present in India, the KMML and Travancore Products Ltd (TTPL)
are the only two manufactures who produce tio2.KMMl produce Rutile grade tio2 pigment
whereas TTPL produce Anatase grade tio2 pigment.
2. STATE SCENARIO
Kerala has abundant volume of mineral resources mostly obtained from the sea coast. The
three mineral industries extracting minerals from different parts of Kerala are:-
 Indian Rare Earth Ltd, Kollam

 Travancore Titanium Products, Trivandrum.
 Kerala Minerals and Metals Ltd, Kollam.
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Travancore titanium products and the Kerala Mineral and Metals ltd, the former produce
Anatase Grade Titanium, using the sulphate process (UK) while the latter produce Rutile
grade Titanium using the chloride process (from USA) than 70 years .The product obtained
from this process is usually anatase which can be treated to obtain Rutile. The disadvantage of
this process is that large quantities of waste products are generated in the form of spent acid
and coppers chloride process was developed by Duo Pont around 1959.Its main advantage
over Sulphate process is that it produce better quality (Rutile grade) and leaves small
quantities of waste products. Moreover this process is continuous.
QUALITY STATUS OF KMML
In order to make their products move in the foreign market and to make their products
achieve the status of world class product , company maintains the quality standards as per
ISO 9002 -1994 and got certified in the year 07-07-2000. This had helped the company to
successfully overcome the competition posed by the global rivals . The companys quality
policy is :
“We delight the customers with world class products and prompt service at competitive price”
The quality objectives of KMML are as follows ;
 Customer driven , continuous development

 Encouraging innovations and technology updating
 Training and empowering workforce.
 Compliance with documented quality systems.
 Better communications and cost reductions
BOARD OF DIRECTORS
 Dr. K Ellangovan I.A.S (Chairman &Director)

 Shri. Raghavan.K (Managing Director)
 Smt. Sharmila Mary Joseph I.A.S (Director)
 Shri.P.Rajendran (Director)
 Shri.Dr.L.V. Murali Krishna Reddy (Director)
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 Shri.Sanjay M kaul I.A.S (Director)
MAJOR PRODUCTS
 Titanium Dioxide Pigment (rutile)

 Magnesium Chloride
 Nano Titanium Dioxide Pigment (rutile)
 Titanium Oxy Chloride KMML grade
 Titanium Tetrachloride
 Ilmenite
 Monazite
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Chapter 2
Organization structure
fig2.1
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An organizational structure defines as how activities such as task allocation, coordination and
supervision are directed toward the achievement of organizational aims .Organizations need to
be efficient, flexible, innovative and caring in order to achieve a sustainable and competitive
advantage. Organizational structure can also be considered as the viewing glass or perspective
through which individuals see their organization and its environment. An organization can be
structured in many different ways, depending on its objectives. The structure of an organization
will determine the modes in which it operates and performs. Organizational structure allows the
expressed allocation of responsibilities for different functions and processes to different entities
such as the branch, department, workgroup and individual. Like any other public sector under
taking KMML has separate department and separate executive heads for each departments are
based on the functional basis. Each department specializes in its own area of operation. The
various departments in KMML :-
1. Personnel & Administration Department

2. Marketing Department
3. Finance Department
4. Production Department
5. Maintenance Department
6. Materials Department
7. Fire & Safety Department
8. Research & Development Department
9. Project Department
10. Technical Department
2.1 PERSONNEL & ADMINISTRATION DEPARTMENT
Of all the factors of production, man is by so far the most important. It is a nature of
common knowledge that every business organization depends for its effective functioning not so
much on its material or financial resources as on its pool of able and willing human resources.
M J Jueius defines “personnel management as the field of management which has to do with
planning, organizing, controlling various operative activities of procuring, developing
maintaining and utilizing a labor force in order that objective and interest for which the company
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is established are attained as effectively and economically as possible and the objective and
interest of all levels of personnel and community are served to the highest degree”.
Personnel department will be directly responsible for the personnel functions of the company to
result in timely action for maintaining smooth industrial relations leading to employee morale
and productivity . This department is responsible for the administration of human resources in
the effective use and provides opportunity for maximum individual development . The structure
in their personal and administrative department is given structure
2.2 MARKETING DEPARTMENT
According to Philip Kotler “Marketing is a social and managerial process by which individual
and group obtain what they need and want through creating and exchange product and value with
others”.
ABOUT KMML MARKETING
KMML have monopolistic in tio2 pigment industry. KMML is a Public Ltd company that stands
as a leader in production of tio2. The company has a large number of customers from all over the
world and outside.
The marketing department is engaged in selling of the company’s product .Products of KMML
always maintain very high standard perfection. The marketing department always strives to
achieve technical excellence in every phase of production to offer a wide range of products for
quality conscious customers.
The marketing functions undertaking by the marketing department of the KMML can be broadly
classified into three , via functions of exchanging, functions of physical supply, marketing
facilitating function.
2.3 FINANCE DEPARTMENT
Finance is the lifeblood of every business. In KMML a well –organized finance department is
functioning .The finance position of the company can be understood by balance sheet and profit
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&loss a/c .Preparing budget report according to the company’s goal is also an important function
of the finance department.
Accounting policy of KMML :-
 Convention
 Fixed assets
 Excise Duty
 Gratuity
 Inventory system
The major functions of these departments are:-
 Depreciation at the prescribed in schedule 14 of the Company’s Act.

 To account excise duty on goods manufactured when it is dispatched.
 To ascertain the accrued gratuity, liability of the company on the date of balance sheet.
 To value finished goods cost or market price whichever is lower.
 Stock of raw-materials, spares, and chemicals are valued at weighted average method
 Treat the claims against the company which are not admitted as contingent liability.
 Maintain the accounts as per the provision of the section 20 G of the company’s act 1956.
AUDITING
Auditors are appointed by the government for a period of one year. There exist external audit and
internal audit.
Internal Audit:-
These are part of the organization .There is an internal auditing sector. They are in charge of
periodical audit.
External audit:-
 Statutory Audit
 Accounts General’s Audit
 Sales Tax Audit
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 Inspection Audit
 Income Tax Audit
 Cost audit.
2.4 PRODUCTION DEPARTMENT
KMML always maintain high standard of perfection by achieving technical excellence in

every field of production. Their production goes into the manufacturing of variety of
products used in everyday life. Paint, material, facial cream,tablets ,newsprint, rubber
product ,cosmetic and printing link all contain tio2.
The department undertakes activities and decisions regarding the production works. Deputy
General Manager controls the activities of the department .Production of tio2 is carried out in
lot wise with specific lot number. Each lot contains 15 MT of tio2 sample are collected from
production at specific intervals and examined thoroughly in the laboratory or the company. If
any defect is identified then the lot is considered as infection quality.
Company always maintain high standard of perfection by achieving technical excellence in
every phase of production. Catering to strict guideline , it offers a wide range of products
used in everyday life. Plant material , facial creams, tablets, newsprint, rubber products,
cosmetics and printing inks all contain TiO2
Minerals Separation Plant and tio2 pigment plant is two independent production units in
KMML .The TP unit is divided into three plants:-
 Illmenite Beneficiation Plant (IBP)
 Acid Regeneration Plant(ARP)
 Pigment Production Plant(PPP)
The annual production capacity is as follows:-
 Illmenite-150000 tons
 Rutile-55000 tons
 Zircon-12000 tons
 Sillimanite-7000 tons
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STRUCTURE OF PRODUCTION DEPARTMENT
Fig 2.2
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2.5. MAINTENANCE DEPARTMENT
The maintenance department of KMML can be grouped electrical, mechanical and

instrumentation section. The Joint General Manager is the top authority of the maintenance
department.
ELECTRICAL SECTION
This department is under the control of Assistant General Manager. It is the function of the
department to ensure the flow of electricity through the company.
MECHANICAL SECTION
This department is under the control of Assistant General Manager .Function of the department
is to ensure the easy working of machine. The company is doing periodical shut downs to carry
out necessary maintenance and servicing of the plant.
INSTRUMENTATION
Assistant General Manager is the apex authority of this section. This section inspects safety of
values, mechanics and working of instruments .A statutory body occasionally visits the company
to check the safety of the plant.
CIVIL
This section undertakes the functions relating to implanting new machinery etc. The manager
civil is the head of this section.
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STRUCTURE OF MAINTENANCE DEPARTMENT
Fig 2.3
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2.6. MATERIALS DEPARTMENT
All the function relating to purchase and storage of materials for the company is carried out by
the department. This department is headed by the Deputy General Manager. There is around
27000 items of raw-materials in KMML. The function of material department can be grouped
into three:-
 Purchase Section
 Purchase made in India
 Purchase made from foreign country
 Cash purchase
 Local purchase.
 Terms of payment
 Direct payment
 Through bank
 Advanced payment
 Letter of credit.
 Store Section
 Receiving the material
 Inspection of material
 Storage and presentation
 Issue and dispatch
 Stock records
 Store accounting
 Stock taking.
2.7. FIRE AND SAFETY DEPARTMENT
Fire and safety is a main department of KMML. It manages the process of giving security to the
employees by giving successful training and giving license to employees and machines. It deals
with the following aspects:-
 Employee details managing
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 Employee training
 Employee accidents
 Expo-pert-license
 Lifting machines and tracks
 Pressure vessel
 Mock-drill
Fire and safety department has following major functions:-
 Routine plant inspection

 Plant safety inspection
 Issue of safety work permits
 Co- ordinates and organizing safety committee meetings
 Giving safety education and training
 Organizing safety promotional activities.
 Co-ordinate safety auditing/surveys
 Inspections, cleaning and maintenance of machineries.
.
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STRUCTURE OF FIRE AND SAFETY DEPARTMENT
Fig 2.4
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2.8 .RESEARCH AND DEVELOPMENT DEPARTMENT
KMML maintain a fully occupied R&D facility in the area of pigment and paint technology
with a view to establish world product and competitiveness .This excellent undertake
research, development and product improvement. Scientist and Engineers continuously purse
innovation technologies in the area of tio2 pigment, quality improvement and other allied
products.
They achieve following tasks recently:-
 Developed new grade RC-802 with excellent balancing properties of glass and weather
ability
 Successfully developed an improved process of oxidation plant
 Developed know how to convert iron oxide process of oxidation plant
 Developed grade RC-808 , a special for automotive coating
 The following works are on progress
 Development of Titanium Ox chloride pilot scale
 Pilot scale development of Nano Titanium particles
 Recovery of beneficiated ilmenite andCalcined petroleum Coke (CPC) from the cyclone
discharge of chlorination plant.
 Development of TiO2 grade for decorative paper /ilmenite application in lab scale
 Monitoring the quality of water check to check the feasibility of ouysourcing water from
Chambakadavu River.
 Devolpment of alternative raw material/supplier purification of crude Titanium
Tetrachloride using treating oil supplied by HPC instead of IOC
2.9. PROJECT DEPARTMENT
Project department is engaged in the expansion programs of the company. They are engaged
in the building up of new projects and also decide upon the future plan of the company.
Some major projects on which they are currently engaged are:-
 Project for separation of minerals at an estimate cost of Rs.21crores.
 Capacity augmentation of synthetic rutile plant at an estimate cost of Rs.32crores.
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2.10 .TECHNICAL DEPARTMENT
Technical department acts as the third agency to the Production and Maintenance
department. The technical wing takes charge of R&D quality control, laboratory and technical
service. KMML maintain fully equipped R&D facility in the area of pigment plant technology
with a view to establish world class products and competitiveness. This excellent facility
undertakes research, development and product improvement. Scientists and Engineers
continually perceive innovative technologies in the area of tio2 pigment quality improvement
and other allied products. The technical and sale service wing extend all helps to customer in the
field of application and users.
2.11.PRODUCTION DEPARTMENT
Kerala Minerals and Metals limited is Kerala government undertaking where titanium dioxide
pigment is produced from the raw sand is obtained from the chavaracoast by a series of
chemical treatments.The different section plant include
 Ilmenite beneficiation plant

 Acid Regeneration plant
 Chlorination plant
 Oxidation plant
 Oxygen plant
 Finishing plant
 Utilities
 Quality Control Lab & Technical services.
2.11.1 ILMENITE BENEFICIATION PLANT (IBP)
The IBP is designed and installed based on the BCA Cyclic process Technology data furnished
by their associates M/s multi Resources International Corporation. The rated capacity of the plant
is 45000 TPY of Beneficiated Ilmenite containing a minimum of 90-92% tio2 which is the raw
material.The plant is in a single stream. The basic raw materials are
 Raw ilmenite
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 Lecofines
 HCL
IBP is divided into three major sections
1.Roasting and cooling section
2. Digestion and Filteration section.
3. Calcination and cooling section
PROCESS DESCRIPTION
Here the raw ilmenite is collected from sea washing, processed and synthetic rutile is
manufactured and tio2 is produced. The basic raw material is conveyed from the respective
storage building to hopper through a system of conveyors and bucket elevators .another solid raw
material petroleum coke is used as reductant is conveyed through conveyors and bucket elevators
to another hopper.
(1) Roasting and cooling section
In the roaster the chemical reaction is reduction .Raw ilmenite and lecofines are fed to a rotary
klin called roaster where the temperature is maintained at about 900-950 for reduction to get
reduced ilmenite which is then cooled in a cooler to about 80degree.About 80% of ferric oxide is
converted to ferrous oxide.
The hot reduced ilmenite discharged from the kiln is directly sent into a rotary water cooler
where it is first quenched by direct water spraying due to this steam is generated preventing hot
ilmenite from re oxidation.the material is further cooled to about 150 degree by circulating water
through the cooler tubes. The outlet water from the cooler tubes is sprayed on the cooler shell at
the free end. The REI leaving the cooler may contain small agglomerates and unburntLecofines
which are separated on the vibrating screen .The product is then transferred to RI storage hopper
though belt conveyor and bucket elevator.
(2) Digestion and Filteration section

The Reduced ilmenite is taken to the digester section. The principle of leaching is that the
material is leaching should be immiscible with the leaching liquor. The leached ilmenite after
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washing with 50 m^3 wash water is dumped into the launders. From the lauder it is pumped
as slurry and filtered through a horizontally moving vaccum belt filter. The filter cake is
washed with water to remove most of acid present .this product called leached ilmenite is
then passed to the calciner through belt conveyors.
(3) Calcination and Cooling Section
In the calciner and cooling section, the leached ilmenite wet cake is calcined at about 500-550
degree to remove moisture from 27% to 0.5% and residual carbonaceous and volatile matter that
are carried over during roasting and leaching process .The hot product is then cooled to 80
degree in the cooler. No chemical reaction take place during calcination.
2.11.2 ACID REGENERATION PLANT (ARP)
Acid Regeneration plant is designed to regenerate HCL acid from spent leach liquor containing
some free HCL and metallic chlorides obtained from the digesters after Leaching.
CHLORINATION SECTION (U200)
Here Beneficiated Ilmenite from IBP is chlorinated to produce Tickle. Chlorine reacts with Tio2
and other metallic oxide impurities in BI in the presence of petroleum coke at a temperature of
about 800-900 degree on a fluidized bed chlorinator to produce chlorides of titanium and other
impurity metals .The chlorides of impurity metal are removed and ticl4 is condensed in crude
form. This Ticl4 is further purified to obtain pure ticl4 liquid, which is stored in storage tanks.
The purified ticl4 produced in U 200 is used in making Tio2 raw pigment in oxidation section.
The primary vessels in which ticl4 is produced in U200 are called chlorinators.
The chlorination section is subdivided into :-
 Chlorine storage and handling

 Chlorinators
 Waste solids &Fume scrubbing system
 Tickle Condensing system
 Vent condensing sysem
 Tickle purification system
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 Lime preparation plant(LPP)

 Effluent Neutralization Plant(ENP)
 Brine chilling plant.
OXIDATION SECTION (U300)
In this plant Tickle is vaporized, preheated and oxidized with oxygen to produce raw tio2 at a
temperature of about 1050 degree Celsius .Oxidation is the most important process section of
this plant as the know – how of oxidizing Ticl4 in special oxidizer reactors is the key to Rutile
grade Tio2 pigment production.
This unit is subdivided into following sections.

 Aluminium chloride dissolving system.
 TiCU vaporizer system.
 TiCU preheater system
 Oxygen preheating system
 Oxidizer KC1 feed system and Sand score system
 Reactor cooling system
 DI Water system
 Pigment separation system
 Chlorine compressor system
 Pretreatment and slurry system
 Sand handling system
 Vent gas system
 Turbines.
Raw materials
Purified Tickle, oxygen, aluminium chloride ,caustic soda , hcl ,sodium dichromate, potassium
chloride, fused silica.
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OXYGEN PLANT
Oxygen plant is designed to produce Oxygen and Nitrogen from atmospheric air. The method
adopted for separation of oxygen and nitrogen from liquid air is known as rectification. Boiling
point of Oxygen is -183 degree Celsius and of Nitrogen is -196 degree Celsius. Rectification
takes advantage of the fact that, usually one of the two components will be more volatile than the
other. Here Nitrogen is more volatile than Oxygen and this difference in volatility makes it
possible for separating Nitrogen and oxygen from liquid air.
PIGMENT FINISHING SECTION (U 400)
The finished titanium dioxide pigment is produced in this section of the plant .The raw pigment
produced in the Oxidation section in slurry form containing sand is the main feed to the finishing
section. Here the raw pigment is treated with chemicals and size reduced to impart certain
qualities and properties apart from removing all traces of sand.
The finishing section U-400 is the final process section divided into the following
subsections.
 Sand milling
 Treatment
 Filtration and Drying
 Micronisation and cooling
 Product Bagging
A number of treating chemicals are added here. The micronized pigment will have extremely
small particle size averaging about 0.2 microns .The optimum particle size of Tio2 pigment is
0.28 microns which is obtained by micronizing the filtered, washed and dried pigment particles.
The micronized product is bagged in paper bags of 25 kg capacity.
UTILITIES
Utility department have the following sections:
1. Boiler plant
2. Water treatment plant
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3. Air compressor station

4. Effluent pumping station
5. Furnace oil receipt storage & transferring section
6. Brick making plan.
2.12MATERIALS DEPARTMENT
All the function relating to purchase and storage of materials for the company is carried out by
the department. It includes all the capital items such as supply orders for projects and revenue
items including raw materials, chemicals, intermediate, stores & spares as well as services .The
department is headed by the General Manager. There is around 35000 items of raw materials in
KMML. The function of material department can be grouped into three:-
 Purchase section
 Long term contract
 E tendering
 Limited tender
 Open tender
 Cash purchase
 Local purchase.
 Nominated purchase
 Terms of payment
 Direct payment
 Through bank
 Advanced payment
 Letter of credit
 Store section
 Receiving the material
 Inspection of material
 Storage and presentation
 Issue and dispatch
 Stock records
26
 Store accounting
 Stock taking
2.12.1 Purchase section
This purchase procedure covers the following areas of procurement of goods and services for the
company
All capital items including supply orders for projects( any additional requirements with regard
projects may be supplemented as separate procedure which will supersede with procedure) all
revenue items including raw materials Chemicals intermediate stores and spares as well as
services.
This purchase procedure covered all purchasing activities of KMML this procedure shall be
effective from date it is issued for implementation and shall supersede the procedure hitherto
followed
REGISTRATION OF SUPPLIERS
Materials department will prepare and maintain item wise approved vendor list of eligible and
qualified suppliers . Such suppliers are prima facie eligible for consideration for procurement of
stores through Limited tender. They are also ordinary exempted from furnishing earnest money
deposit/ security deposit with their tenders ,credentials, manufacturing capability, quality control
system, past performance facility for after sale service, financial background of the supply
should be carefully verified before registration
Any firm situated in India or abroad, who are in the business of manufacturing stocking your
marketing of stores and operating services for specified categories shall be eligible for
registration. Where registration is based on partly outsource arrangements/ agreements which are
the responsibility of the registered unit to keep such arrangements agreements renewed/ alive at
all times to keep the registration valid for the period for which it has been granted. In failure in
this regard may make the registration null and void ineffective retrospectively for any such dates
which the company considers appropriate. Firms against whom any punitive action has been
taken shall not be eligible for Re registration for a period of 3 years.
27
registration request may not be entertained from such forms stakeholders of whom having any
interest in deregistered/ banned firms.
New suppliers may be considered for registration at any point of time provided be fulfilled all the
required conditions. Performance and conduct of every registered supplier is to be observed by
the concerned department. The registered suppliers are liable to be removed from the list of
approval suppliers if they fail to abide by the terms and condition of the registration.
PURCHASE REQUISITION
An Indent shall be originated with the proper justification from the indenting department with
approved specifications and clear drawings. Intend should carry budget code. For items not
covered in the budget but required the same maybe appropriated from other budget heads up to
Rs 20 lacs duly approved by MD. For budget heads above 20 lacs approval may be obtained
from the board of directors
Cash purchase: it is upto3000 rs authorized by the HOD of materials/HOD of

production/HOD of TSP. the cash purchase will be maintained by the materials department in a
register and will be submitted to the internal audit for monthly review.
Local purchase: The items urgently required and available in local market may be procured by
local purchase with the approval of HOD (M) /HOD(pdn) /HOD(Ms) /HOD(TSP).
E tender: All tenders of value exceeding Rs 5 lakh shall be processed through e tendering until
an independent portal is developed by the company
Limited tender: it is for the purchase of materials below 10 lakhs .procurement is from the
approved vendor list .if approved vendor list is not available, procurement is through limited
vendor system with prior approval of Managing Director only.
Open tender: It is for above 10 lakhs.it is uploaded in the website and released through two
dailies. Matter should have approval of unit head coverage reduction or increase/decrease in the
number of dailies shall be done with the approval of Managing Director.
28
Terms of payment
Unless otherwise specified payment will be made after receipt and acceptance of materials in
good condition .Goods dispatched either by V.P.P or by documents through bank will not be
accepted unless previously agreed by us. No interest shall be payable on overdue amounts.100%
of payments will be done within 30 days of receipt and acceptance of material in the stores for
the order value less than Rs.5 lakhs .For order value above Rs.5 lakhs,90% payment shall be
made within 30 days of receipt and acceptance and balance 10% after the guarantee period.
2.13. STORES SECTION AND INVENTORY CONTROL
At this section the items are arranged in the store. Each item have a specific nine digit code as
per the ISO code system. when a purchase request from a plant or a section to the store proceed
with the verification, quantity ,order/intent outstanding of the items and sent to the concerned
plant for the approval .after the approval the inventory control of stores enter a purchase number
and forward to the materials department.at there an enquiry is made and sent to the vendors
under the guidance of purchase officer on receiving the quotation from the vendors purchase
section made a comparative statement with the lowest rate and sent to the technical department.
After the approval from there the department made a purchase order with specified conditions.
Vendors supply the goods within the due date .with the invoice goods at the stores is entered into
stock inward book and inspection process involves the items other than the raw materials. The
raw materials are checked by the lab .Damaged goods are rejected. Then the goods are entered
into stock received note and sort the items into the store and maintained the goods in the
respective section .the goods are supplied to the plant as they receive an material issue note
(MRN).
In any manufacturing firm the basic responsibilities of a store is to act as a custodian and
controlling agent for parts , supplies , materials and to provide service to users of the goods . The
main objectives of a store department is ;
 Reciept of incoming goods

 Inspection of all reciepts or invoice
 Storage and preservation
29
 Identification of all materials stored

 Materials handling
 Maintenance of stock records
 Packaging
 Stores accounting
 Inventory control
The store department plays a major role in maintaining the production and running of the
company and the store possess a major area of responsibility in every manufacturing industry.
The CENTRAL STORES in the Kerala Minerals And Metals Ltd is functioning for the
storing , procurement and distribution of all materials coming to the plant. All materials consist
of Machine spare parts, raw materials, stationary items and all other things wanted by the plant .
Inventory control is the main objective of the stores department. The goods that coming to the
plant by the purchase order through vendors ,suppliers are verified , inspected and stored
according to the nature of the material. The distribution of received goods are made by the
material requisition procedure by the concerned department in the plant for the respective goods.
The goods are handling by experts , because each items are different in its properties ,
materials and other technical and non-technical specifications.
The following procedures are followed by the central stores,
a. SIB (Stores Inward Book)

b. Inspection of received goods
c. SRN (Stores Received Note)
d. Storing and maintaining the goods in respective sections
e. Material Requisition / Issue note (MIN)
f. Verification
g. Distribution
h. Stock Record keeping and stock verification report preparation
i. Stock accounting
30
SIB (Stores inward book)
Stores inward book is the Book of Records keeping the data of goods coming to stock.
SIB are keeping data into forms
The Local book and System generated form
In the local book of SIB is generated by checking the invoice or bill and computerized bill and
verification of items in system .Then the item details, Transporter details and order details and
also the supplies name are recorded in the book. The primary step is the identification of items
with the invoice .First step is checking the invoice is correct or not then the quantity noted in the
invoice and verification of price per unit and overall price of goods. The transportation of goods
from the supplier to KMML is also recorded. Some goods came by hand and some by transport
services.
And in the unloading process it is mostly done by KMML staff weighbridges are used to
measure the total weight and individual weight of goods. After checking all the parameters the
details have entered to the SIB book.
INSPECTION
Inspection is the process of checking the parameters such as quantity , quality and other
specifications of the product delivered. Inspection process is done by the engineers from the
concerned department, the engineers will check the quality of the item and the required
specification. The quantity of the goods delivered will be checked by staff in the stores
department in order to avoid the short supply and excess supply of goods .After the certification
from the concerned engineer item will be sent to their respective locations.
SRN (Stores received note)
Stores received note is the book of records to note the list and details of goods received by the
store after the inspection process .The rejected items will keep in the rejection bay. The stores
received items will only be noted in the SRN. This note can be used further for checking the
stock, supplier details, price etc...
31
STORING AND MAINTAINING
The items received by the stores will be stored in the respective section according to the nature
of the item received. A 9 digit coding system is provided for each item received by store for the
easy identification and maintaining process of the goods.
This system is totally based on the ISO standards. each and every items in the store is allocated
to respective positions and racks. apart from this heavy items and the items which is considerably
bigger in size is stored in a common place for the easy identification and the maximum
utilization of space in the store.
The store is mainly divided into four sections
A,B,C and D
The A section of the stores is used to store Spares of machines ,General mechanical items,
Valuable items, Rack wise arrangement items and Heavy items. And also all department
mechanical items and general arrival items and Main equipments.
The B section of the stores is used to store Heavy general items, Pipes, Flange, Structural items,
Civil consumable items, Life shell items , Compounds and Chemicals.
The C-section of the store is used to store the raw materials for the plant.
The D section of the plant is used to store general stationery items such as personal items ,
papers ,paper files and safety items
2.14 INVENTORY CONTROL SECTION
Proper inventory management is necessary to provide and maintain good customer

service. It enables smooth flow of goods through the production process. It is important as it
provides protection against the uncertainty of the demand and supply and also performing the
various production operation economically and independently. According to previous year
statistical report the consumption trends are analyzed and two levels are fixed, the maximum
level and the minimum level of stock. In between these two levels is called reorder level. This re
order items list is verified and check whether there is sufficient stock, if there any short ,
32
Immediately a purchase request is forwarded to purchase section. All the Purchase requests are
forwarded only through Stores department . Materials purchased for a month is analyzed and an
issue price is fixed for the month. The company follows weighted average method.
33
CHAPTER 3
3.1.TASK / DUTIES / RESPONSIBILITIES ASSIGNED DURING

INTERNSHIP
My 20 days internship which started from 1st August to 30th August 2018 at KMML was
an overwhelming experience to get accustomed to the nuances of the work place outside the text
book syllabus. During the internship period I spent at the organization which enabled me to
understand the practical working of the theories learned in the classroom. During my internship I
was placed Production and Materials Department.
DATE TASKS/DUTIES COMPLETION STATUS
04/08/2018 SAFETY CLASS COMPLETED
06/08/2018 STUDY ABOUT COMPLETED
CLASSIFICATION OF
CENTRAL STORES
07/08/2018 STUDY ABOUT SIB COMPLETED
PROCEDURES
09/08/2018 MAKING SYSTEM ENTRY COMPLETED
IN SIB AND INVOICE
CHECKING
10/08/2018 SYSTEM GENERATED COMPLETED
ENTRY OF SIB
11/08/2018 REPORT PREPERATION COMPLETED
12/08/2018 STUDY ABOUT COMPLETED
INSPECTION PROCESS
13/08/2018 LOCATION AND RACKING COMPLETED
OF ITEMS
14/08/2018 TO CHECK REORDER COMPLETED
LEVEL
16/08/2018 PREPERATION OF COMPLETED
BINCARD AND SRN
17/08/2018 CHECKING OF MIN COMPLETED
34
18/08/2018 IDENTIFICATION OF COMPLETED

ITEMS IN THE STORE
20/08/2018 INTRODUCTION TO COMPLETED
PURCHASE DEPARTMENT
&PRODUCTION
DEPARTMENT
21/08/2018 STUDIED ABOUT COMPLETED
PROCEDURES OF
PURCHASE DEPARTMENT
AND FAMILIARISED WITH
DIFFERENT PLANTS
23/08/2018 STUDIED ABOUT TYPES COMPLETED
OF PURCHASE AND
STUDIED ABOUT
TITANIUM DIOXIDE
PIGMENT PLANT
24/08/2018 CHECKING COMPLETED
INDENTS,REGISTRATION
AND STUDY ABOUT IBP
&ARP
28/08/2018 EVALUATION OF BIDS COMPLETED
AND STUDY ABOUT
PIGMENT PRODUCTION
PLANT
29/08/2018 ORDERING OF COMPLETED
MATERIALS AND
PAYMENT PROCEDURES
30/08/2018 CHECKING OF PREVIOUS COMPLETED
FILES AND PURCHASE
HISTORY
35
31/08/2018 CHECKING OF SRN & COMPLETED

ENQUIRIES
01/09/2018 EVALUATION OF BIDS IN COMPLETED
TECHNICAL AND
COMMERCIAL
PROCEDURES
03/09/2018 REPORT SUBMISSION AND COMPLETED
CERTIFICATION
36
3.2 LEARNING SUMMARISATION
The study conducted at THE KERALA MINERALS AND METALS LIMITED helped
in getting a wider outlook about the business environment and managing organization .The
company has ten functional departments through which it was operating. It is found that
company has good working environment and cordial relationship is maintained between all
departments for the smooth functioning and achievement of the organizational goal of maintain
products quality and brand image among the customers.
The internship carried out in the KMML was successful in achieving the specific
objectives. It helped to familiarize with the organization structure and its functioning. It also
helped to familiarize with the production and materials department and aware about the various
operational activities such as process design, Inventory control, waste management, materials
management etc. The interaction with the organization people improves my communication
skills and also experienced the application of theoretical concepts.
The study helped in improving practical knowledge and also it helped me for improving
confidence and awareness.
The experience at KMML was great. This was the first time in my life have been to be in
a company and studying about it.
37
CONCLUSION
It was a great experience to do internship at KMML. This experience helped me to

understand the working of an organization and to know different activities performed in an
organization. The primary objective of an internship is to gather a real life working experience
and put theoretical knowledge in practice. On completion of this internship, the intern came to
know about the importance of various departments and role of these departments in the
company. The internship carried out in THE KERALA MINERALS AND METALS LIMITED
was successful in achieving the specific objectives. It helped to familiarize within the
organization structure and its functioning. It also helped to familiarize with the different
departments in the organization and their functions and activities. The study helped me in
improving practical knowledge and also it helped me for improving awareness. The experience
from the Materials department and Production department helped me to improve my knowledge
about organizational practices such as Inventory control , Production processes , Purchasing
procedures etc…
38
BIBLIOGRAPHY
 Adam Jr , Ebert (2012) Production and Operations Management, Pearson

Education
 Russell Taylor (2003), Operations Management ,Eastern Economy Edition
 Kerala Minerals and Metals Ltd. (2008) Accessed 20 August 2018,
URL : www.kmml.com
39

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THE KERALA MINERALS AND METALS LTD

1. To get knowledge about the functional and managerial aspects of KMML.

An internship is an opportunity for a student to experience professional development under an

(2) Large scale generation of employment in the state in general .

“Be a world class producer of mineral sand based value-added products.”

 To exploit the mineral wealth abundantly available in the coastal belt.

ABOUT THE INDUSTRY/COMPANY

 Kerala Minerals and Metals Ltd Chavara, Kollam.

 Indian Rare Earth Ltd, Kollam

QUALITY STATUS OF KMML

The quality objectives of KMML are as follows ;

 Customer driven , continuous development

 Dr. K Ellangovan I.A.S (Chairman &Director)

 Shri.Sanjay M kaul I.A.S (Director)

 Titanium Dioxide Pigment (rutile)

1. Personnel & Administration Department

2.1 PERSONNEL & ADMINISTRATION DEPARTMENT

2.2 MARKETING DEPARTMENT

ABOUT KMML MARKETING

2.3 FINANCE DEPARTMENT

Accounting policy of KMML :-

The major functions of these departments are:-

 Depreciation at the prescribed in schedule 14 of the Company’s Act.

2.4 PRODUCTION DEPARTMENT

KMML always maintain high standard of perfection by achieving technical excellence in

The annual production capacity is as follows:-

STRUCTURE OF PRODUCTION DEPARTMENT

2.5. MAINTENANCE DEPARTMENT

The maintenance department of KMML can be grouped electrical, mechanical and

STRUCTURE OF MAINTENANCE DEPARTMENT

2.6. MATERIALS DEPARTMENT

2.7. FIRE AND SAFETY DEPARTMENT

 Employee details managing

Fire and safety department has following major functions:-

 Routine plant inspection

STRUCTURE OF FIRE AND SAFETY DEPARTMENT

2.8 .RESEARCH AND DEVELOPMENT DEPARTMENT

They achieve following tasks recently:-

2.9. PROJECT DEPARTMENT

2.10 .TECHNICAL DEPARTMENT

 Ilmenite beneficiation plant

2.11.1 ILMENITE BENEFICIATION PLANT (IBP)

IBP is divided into three major sections

1.Roasting and cooling section

2. Digestion and Filteration section.

3. Calcination and cooling section

(1) Roasting and cooling section

(2) Digestion and Filteration section

2.11.2 ACID REGENERATION PLANT (ARP)

CHLORINATION SECTION (U200)

The chlorination section is subdivided into :-

 Chlorine storage and handling

 Lime preparation plant(LPP)

OXIDATION SECTION (U300)

This unit is subdivided into following sections.

PIGMENT FINISHING SECTION (U 400)

Utility department have the following sections:

3. Air compressor station

2.12.1 Purchase section

Cash purchase: it is upto3000 rs authorized by the HOD of materials/HOD of

2.13. STORES SECTION AND INVENTORY CONTROL

 Reciept of incoming goods