[1]

A REPORT ON THE ORGANISATION

STUDY

AT

TRAVANCORE COCHIN
CHEMICALS
SUBMITTED TO:

MAHATMA GANDHI UNIVERSITY, KOTTAYAM

In partial fulfilment of the requirements for the

award of the degree of

MBA ()

SUBMITTED BY:

REGISTER NO:
 [2]

CERTIFICATE
This is to certify that the Summer Project entitled “AN
ORGANISATION BASED STUDY ON THE FUNCTIONAL AREAS OF
“THE TRAVANCORE COCHIN CHEMICALS LIMITED” carried
out by Miss, in partial fulfilment of the requirement of the
Master of Business Administration (MBA) of Mahatma
Gandhi University is a bonafide report of the work done by her
under our supervision and guidance. This is also to certify that
this report has not been submitted to any other Institute /
University for the award of any Degree.

However, this certificate is not issued to endorse the views and

opinions expressed in the report.

Academic Guide
Dean
 [3]

DECLARATION

I, , , hereby declare that this organization based report on “THE

TRAVANCORE COCHIN CHEMICALS LIMITED” is an outcome
of my study under the guidance of and is submitted in partial
fulfilment of the requirements for the award of the Degree of
Master of Business Administration of the Mahatma Gandhi
University.

The observations, suggestions

and findings of this report are based on the data collected by
me during the one-month period allotted for the study. Any part
of this report has not been reproduced or copied from any other
report submitted to the institute.
 [4]

ACKNOWLEDGEMENT

I thank lord almighty who gave the strength and wisdom

to complete the organizational study in a very successful
manner.

I would like to express my deep sense of gratitude to Mr.

Philip Mathew, Manager Training & Development who gave
me the necessary guidance and inspiration throughout the
work.

I would like to place it on cards my sincere thanks to my

guide Smt., Faculty (MBA), for her valuable suggestions during
the study.

I am extremely grateful to my parents for their

inspiration and to all

those who had directly and indirectly helped me during the

preparation of the

project work.
 [5]

TITLE PAGE NO
1. INTRODUCTION

1.1 Objectives of the study

1.2 Limitations of the study

1.3 Sources of data collection

1.4 Industry Profile

2 COMPANY PROFILE

2.1 History and growth

2.2 Mission

2.3 Objectives

2.4 Product Profile

2.5 Awards won-ISO certification

2.6 Competitors

2.7 Customers
 [6]

SL.NO

3 ORGANIZATION STRUCTURE
3.1
Organisation Chart
3.2
Departments
3.2.1
Operations Department
3.2.2 Material Department

3.2.3 Marketing Department

3.2.4 Technical Department

3.2.5 Personnel Department

3.2.6 HRD /Training Department

3.2.7 Finance Department
3.2.8 Engineering Department
3.2.9
Projects Department
 [7]

4 SWOT ANALYSIS

5 CONCLUSION

5.1 Conclusion

5.2 Findings

5.3
Recommendations
5.4
My Experience in the organisation

6 BIBLIOGRAPHY

7 APPENDIX

7.1 Financial statements

7.2 Abbreviations
 [8]

LIST OF CHARTS

CHART NO: NAME OF THE CHART PAGE NO

3.1 Organisation Chart

3.2.1 Operations Department

3.2.2 Material Department

3.2.3 Marketing Department

3.2.4 Technical Department

3.2.5 Personnel Department

3.2.6 HRD /Training Department

3.2.7 Finance Department

3.2.8 Engineering Department

3.2.9 Projects Department

 [9]

INT
RODUCTION
 [10]

1. INTRODUCTION

The chemical industry comprises of the companies that

produce industrial chemicals. It is central to the modern
world economy, converting raw materials such as oil, natural
gas, air, water, metal and minerals into more than 70,000
different products. Chemicals are used to make a wide
variety of consumer goods, as well as thousands of inputs to
agriculture, manufacturing, construction and service
industries. The chemical industry itself consumes 26% of its
own output. Major industrial consumers include rubber and
plastic products, textiles, apparel, petroleum refining, pulp
and paper and primary metals. The chemical industry has
shown rapid growth for more than 50 years.

As accepted by chemical engineers, the

chemical industry involves the use of chemical processes
such as chemical reactions and refining methods to produce
a wide variety of solid, liquid and gaseous materials. Salt is
one of the oldest and most popular condiments. What is
relatively unknown, however is that salt is also the raw
material for one of the most potentially profitable chemical
industries in the country- Chlor alkali. The Chlor alkali
industry faces a threat from the imported products.

The chlor alkali industry

in India is around 60 years old. It began with a modest
capacity of a few thousand tonnes per annum and has since
grown into a 2.24 million tonne per annum capacity industry.
In the process of manufacturing chlor alkali some bye
products are assured. For each tonne of caustic soda, 860 kg
of chlorine and 25 kg of hydrogen will be produced. Some
amount of chlor produced is combined with hydrogen to
make hydrochloric acid. Caustic soda, Hydrochloric acid,
Chlorine is basic chemicals and are used by almost all
industries.

1.1 OBJECTIVES OF THE STUDY

 [11]

• To understand the organization structure and the

various functional departments.

• To have an exposure of the work environment.

• To understand the extent to which the theory

matches with the actual practices seen in the
organization.

• To make an analysis of the organization’s

performance.

• To study the relevance of TCC in the chemical

industry field in India.

• To get clear idea regarding the products and their

products.

1.2. LIMITATIONS OF THE STUDY

• To understand the organization and study its various
functions and ups and downs a period of 30 days is not
enough.

• No direct contacts with department are not allowed.

• Access to many of the important documents or the key

areas was not allowed.

• As there were many three shifts seeing the workers

together for a public interview or an opinion session was
not possible.

1.3 SOURCES OF DATA COLLECTION

BOTH PRIMARY AND SECONDARY METHODS

PRIMARY METHOD
This is the method by which we collect data directly from the
organisation. This may be of 2 types observation method and interview method. In
observation method we observe the work done in the organisation and collect data
from that, while in interview method it is the verbal conversation with the workers in
 [12]

the organisation and collecting data directly from them. From this we get different
views and ideas of different people. The data collected will be very accurate.

SECONDARY METHOD
This is a method by which we collect data that is already being collected by
someone else. And which have already being through statistical methods. This study
also used secondary data from websites, magazines etc. This type of data may not be so
accurate because it is not collected by us directly. So collecting data through secondary
method should be very careful. But this is much easier method than primary data
collection .

1.4. INDUSTRY PROFILE

INDUSTRY PROFILE

Chemical Industry

. The chemical industry comprises the companies that produce industrial

chemicals. It is central to modern world economy, converting raw materials (oil, natural
gas, air, water, metals, and minerals) into more than 70,000 different products. Polymers
and plastics, especially polyethylene, polypropylene, polyvinyl chloride, polyethylene
terephthalate, polystyrene and polycarbonate comprise about 80% of the industry’s
output worldwide. Chemicals are used to make a wide variety of consumer goods, as well
as thousands inputs to agriculture, manufacturing, construction, and service industries.
The chemical industry itself consumes 26 percent of its own output. Major industrial
customers include rubber and plastic products, textiles, apparel, petroleum refining, pulp
and paper, and primary metals. Chemicals are nearly a $2 trillion global enterprise, and
the EU and U.S. chemical companies are the world's largest producers. The largest
 [13]

corporate producers worldwide, with plants in numerous countries, are BASF, Dow,
Shell, Bayer, INEOS, Exxon Mobil, DuPont, and Mitsubishi, along with thousands of
smaller firms.

In the U.S. there are 170 major chemical companies. They operate internationally
with more than 2,800 facilities outside the U.S. and 1,700 foreign subsidiaries or affiliates
operating. The U.S. chemical output is $400 billion a year. The U.S. industry records
large trade surpluses and employs more than a million people in the United States alone.
The chemical industry is also the second largest consumer of energy in manufacturing
and spends over $5 billion annually on pollution abatement.

In Europe, especially Germany, the chemical, plastics and rubber sectors are
among the largest industrial sectors. Together they generate about 3.2 million jobs in
more than 60,000 companies. Since 2000 the chemical sector alone has represented 2/3 of
the entire manufacturing trade surplus of the EU. The chemical sector accounts for 12%
of the EU manufacturing industry's added value.

The chemical industry has shown rapid growth for more than fifty years. The
fastest growing areas have been in the manufacture of synthetic organic polymers used as
plastics, fibers and elastomers. Historically and presently the chemical industry has been
concentrated in three areas of the world, Western Europe, North America and Japan (the
Triad). The European Community remains the largest producer area followed by the
USA and Japan.

The traditional dominance of chemical production by the Triad countries is being

challenged by changes in feedstock availability and price, labour cost, energy cost,
differential rates of economic growth and environmental pressures. Instrumental in the
changing structure of the global chemical industry has been the growth in China, India,
Korea, the Middle East, South East Asia, Nigeria, Trinidad, Thailand, Brazil, Venezuela,
and Indonesia.

Technology
As accepted by chemical engineers, the chemical industry
involves the use of chemical processes such as chemical reactions
and refining methods to produce a wide variety of solid, liquid, and
 [14]

gaseous materials. Most of these products are used in manufacture

of other items, although a smaller number are used directly by
consumers. Solvents, pesticides, lye, washing soda, and Portland
cement are a few examples of product used by consumers. The
industry includes manufacturers of inorganic- and organic-
industrial chemicals, ceramic products, petrochemicals,
agrochemicals, polymers and rubber(elastomers), oleo chemicals
(oils, fats, and waxes), explosives, fragrances and flavors.
Examples of these products are shown in the Table below.

Product Type Examples inorganic industrial ammonia,

nitrogen, sodium hydroxide, sulphuric acid, Organic industrial
acrylonitrile, phenol, ethylene oxide, urea, Ceramic products silica
brick, frit Petrochemicals benzene, ethylene, styrene,
Agrochemicals fertilizers, insecticides, herbicides, Polymers
polyethylene, Bakelite, polyester, Elastomers polyisoprene,
neoprene, polyurethane, Oleo chemicals lard, soybean oil, stearic
acid, Explosives nitroglycerin, ammonium nitrate, nitrocellulose,
Fragrances and flavors benzyl benzoate, coumarone, vanillin.

Although the pharmaceutical industry is often considered a chemical industry, it has

many different characteristics that put it in a separate category. Other closely related
industries include petroleum, glass, paint, ink, sealant, adhesive, and food processing
manufacturers.

Chemical processes such as chemical reactions are used in chemical plants to form
new substances in various types of reaction vessels. In many cases the reactions are
conducted in special corrosion resistant equipment at elevated temperatures and
pressures with the use of catalysts. The products of these reactions are separated using a
variety of techniques including distillation especially fractional distillation, precipitation,
crystallization, adsorption, filtration, sublimation, and drying. The processes and
product are usually tested during and after manufacture by dedicated instruments and
on-site quality control laboratories to insure safe operation and to assure that the product
 [15]

will meet required specifications. The products are packaged and delivered by many
methods, including pipelines, tank-cars, and tank-trucks (for both solids and liquids),
cylinders, drums, bottles, and boxes. Chemical companies often have a research and
development laboratory for developing and testing products and processes. These
facilities may include pilot plants, and such research facilities may be located at a site
separate from the production plant.

Companies in 21st century

The chemical industry includes large, medium, and small companies that are
located worldwide. Companies with sales of chemical products greater than $10 billion
dollars in fiscal year 2005 are shown below. For some of these companies the chemical
sales represented only a portion of their total sales; for example Exxon Mobil’s chemical
sales were only 8.7 percent of their total sales.

Chemical Industry is highly heterogeneous with following major sectors:

• Petrochemicals
• Inorganic Chemicals
• Organic Chemicals
• Fine and specialties
• Bulk Drugs
• Agrochemicals
• Paints and Dyes

Foreign Trade

India was a net importer of chemicals in early 1990s, but has

now become a net exporter due to reduction in imports because of
implementation of many large scale petrochemical plants like
Reliance, ONGC etc. and also because of tremendous growth of
exports in sectors like bulk drugs and pharmacy, pesticides, dyes
and intermediates.
[16]
 [17]

COMPANY
PROFILE

2.1. HISTORY & GROWTH

The Travancore-Cochin Chemicals Ltd., popularly known as TCC
was established in 1950. The idea of establishing the unit was conceived by M/s
Sheshasayee Brothers the then managing agent of FACT.

The venture was started as partnership concern in the name Travancore Mettur
Chemicals with FACT and MCIC (Mettur Chemicals and Industrial Corporation) as
partners. In 1951 the partnership was registered as a Public Limited Company, with the
State Government contributing the major share of equity and the company was then
named as TRAVANCORE-COCHIN CHEMICALS LTD. M/s Sheshasayee Brothers
continued to be the managing agents for the next 10 years.
 [18]

Commercial production of Caustic Soda from the first plant of 20 tpd capacity was
started in 1954 January. TCC is the first unit in India to manufacture Rayon grade
Caustic Soda.

Stages of Growth

• 1956 - A continuous Caustic Fusion Plant 20 tonnes per day for

producing Caustic Soda flakes.
• 1958 - Chlorine Liquefaction Plant
• 1960 - Capacity enhanced to 30 tonnes per
day further to 40 tonnes per day.
o Established new plant for manufacture of Sodium
Hydrosulphate 3 tpd capacity
• 1967 - 7 tpd Sodium Hydrosulphate
o 60 tpd Caustic Fusion Plant
o 4 tpd Iron free Sodium Sulphate
• 1975 Added another 100 tpd Caustic Soda Membrane Unit
thereby increased the production capacity 200 tpd own Water
Treatment Plant.
(by 1988, many of the old unit were dismantled)
• 1997 - 100 TPD Caustic Soda manufacturing unit using
Membarane technology capacity 125 tpd.
• 1998- New CCF Plant in place of existing 60 tpd.
• 2005 -Addition 25 tpd
• 2006 Addition 25 tpd

At present total installed capacity is 175 tpd Caustic Fusion plant for 100 tpd

Products:

• Caustic soda lye

• Caustic soda flakes
• Liquid Chlorine
• Hydrochloric acid
 [19]

• Sodium Hypochlorite

2.2. CORPORATE MISSION

TCC is committed to supply quality chemicals at
competitive prices.
Customer satisfaction, Concern for environment and Safety are our
priorities.
They intend to achieve

• Utmost level of conservation of all resources including energy

• Cost effectiveness in all operations
• Regular upgrading of technologies used in processing
• Compliance with laws and statutory regulation

Corporate Governing Body:

 [20]

CHAIRMAN Q

MANAGING DIRECTER

DIRECTOR NOMINEE DIRECTOR

DIRECTOR DIRECTOR
(FINANCE)
(OFFICIAL) (KSIDC)

uality Policy:

They are committed to enhance customer satisfaction by providing

goods and services complying with continually improving Quality
Management System.

Health and safety policy:

• TCC is committed to provide every one of its employees and

the related public an accident-free and healthy environment
in its efforts to manufacture high quality products at
competitive prices. The company will comply with all
statutory requirements in this regard.
• The company will provide a work environment in which
identified hazards are controlled, if elimination is not feasible
and will provide personal protective equipments wherever
necessary.
 [21]

• Accident prevention is the direct responsibility of the Line –

Management and will be an important criterion for
performance appraisal. Line – Management will ensure that
all safety measures are incorporated in the operating and
maintenance procedures as well as in any process technology
changes in the plant/infrastructure.
• Consideration of health and safety will be given proper
weightage in selection and deployment of the personnel.
• The company will ensure that health and safety aspects are
given due consideration in decision regarding purchase of
plant equipments, machinery and materials.
• Every employee of the company shall perform his/her job
adopting Safe and proper work methods and using
appropriate Safety equipments understanding that their
career advancement is linked with SAFE performance.
• Contractors, sub-contract workers, transporters and visitors
entering the factory shall be required to observe health and
safety practices of the company in all their activities.
• All contract jobs will be carried only through the laid down
procedures with appropriate supervision.

The company will carry out safety audits, risk assessment studies, emergency mock drills,
and periodic assessment of health of its employees as well as status place hazards be
identified, appropriately evaluated and effectively controlled to achieve this goal. Whole
hearted co-operation of all is solicited for this.

Energy Policy:

At the Travancore-Cochin Chemicals Udyogamandal are always committed to

conservation of energy by all possible means

To accomplish our mission, they strive for:

 [22]

• Technological up gradation to reduce specific energy

consumption
• Conducting energy conservation studies including energy audit
and adopting the apt measures for conserving energy
• Contacting other organizations and enriching our experiences
on energy conservation
• Using renewable energy sources to the extent possible
• Disseminating knowledge and information on energy
conservation to our employees
• Low energy fuels also to be tried depending upon feasibility.

2.3. OBJECTIVES
• Produce and market chemicals and caustic soda economically
and in an environmentally sound manner.

• To maintain optimum level of efficiency and productivity and

to secure optimum return on investment.

• To maximize profits from projects taken up.

• The continuously upgrade the quality of human resource of

the company and to promote organization development.

• To improve the plant’s operational safety and to confirm

statutory pollution controls standards.

• To ensure corporate growth by expansion and diversification.

• To care for community around.

2.4. Product Profile

Caustic Soda, Chlorine, Hydrochloric Acid form the
back born of the chemical industry as it is important to the
country’s economic growth.
 [23]

Products and production capacity

Products Production in TPD

Caustic Soda Lye 175(on 100% NaOH
basis)
Caustic Soda 100
Flakes
Liquid Chlorine 72
Commercial 387
Hydrochloric Acid
Sodium 45
Hypochlorite

2.5. AWARDS WON AND ISO

CERTIFICATION
Moving with the times, TCC keeps up its technology
regularly updated and continue to be the competitive strength in
the Chlor-alkali industry. With expanded plants and higher
production capacity, TCC has come out to be the profitable public
sector undertaking. Over the years we have achieved recognition
and awards for the remarkable performance in the industry with
 [24]

regard to production, productivity, energy conservation and

environmental protection.

• 1981 - Best Performance Award for Safety in the State from

Directorate of Factories & Boilers, Government of Kerala

• 1988-89 - Best Pollution Control Award under group "Heavy

Inorganic Industries" in Kerala, from Kerala State Pollution
Control Board

• 1989 - Award for Best Performance in Safety in India under

"Chemical Industries" group from National Safety Council.

• 1989-90 - Prize for Productivity from Kerala State

Productivity Council.

• 1993 - Best Performance award for Energy Conservation in

the State of Kerala under group "Chemical & Fertilizers –
above 3000 KVA" from Government of Kerala

• 1994-95 - Best Performance award for the Productivity in the

State of Kerala under group "Large Industries" from Kerala
State Productivity Council

• 1995-96 - Best Performance award for Productivity in the

State of Kerala under group "Large Industries" from Kerala
State Productivity Council.
• 1998 - Best performance award for Energy Conservation in
the State of Kerala under group "Major Industries" from
Energy Management Centre, Govt. of Kerala.
• 1998 - Performance award for Energy Conservation under
group "Chlor-alkali Sector". Ministry of Power, Government of
India.
• 2003 - Kerala State Energy Conservation Award (2000) in the
category of Large Scale industry
 [25]

• 2005 - National Energy Conservation Award "Chlor-alkali

Sector"
Eco preserve:

TCC is well aware of the responsibility that manufacturing

industries bear towards environment. Conserving the resources of
environment from pollution and preserving healthy living
conditions are important concerns at TCC. TCC’s commitment is to
sustain the toxic-free environment observing statutory stipulations
and legal regulation.

TCC believes in pollution prevention rather than

pollution control. Their activities comprise awareness programs
among the employees, customers, contractors and all those who
are associated with them. Their endeavour is to minimize
hazardous emission and waste and to reduce the impact of the
manufacturing activities. TCC aims to achieve zero effluent
discharge by the end of this year.

2.6. COMPETITORS
• Tamil Nadu Petro Products Ltd

• Belapur Industries

• Chemplast (Tuticorn)

• Andhra Sugars Ltd (Andhra pradesh)

• Atul Ltd (Ahmadabad)

• Chem Fab Alkalies Ltd (Pondichery)

• Kothari Petro Chemicals Ltd

 [26]

• Sourashtra chemicals Ltd

• Grassim Industries Ltd

• Tata Chemicals Ltd(Gujarat)

• Sree Rayalaseema Alkalies and Allied Chemicals Ltd

• Indian Rayon and Industries Ltd

• Jayashree Chemicals Ltd

• Centuary Rayon

• Kothari Chemical Ltd

• Bilt Chemical Ltd

• Southern Petro Chemical Industries

• Gujarat Alkalies &Chemicals Ltd

• Sirpur Paper Mills.

2.7. CUSTOMERS
Hindustan Lever Limited-Cochin, Kerala.

Indian Rare Earths Ltd-Udyogamandal, Kerala

 [27]

TamilNadu Paper Mills Limited Pugalur, Tamilnadu

Pigments India Ltd. - Chalakudy, Kerala.

Indian Oil Corporation. - Ernakulam, Kerala.

Mysore paper Mills Ltd. - Bhadravathy, Karnataka

Fertilizers & Chemicals Travancore Ltd. Ernakulam, Kerala

Travancore Titanium Products Ltd.-Trivandrum, Kerala

Kerala Minerals & Metals Ltd. - Kollam, Kerala.

Hindustan Zinc Ltd - All Units

Hindalco. Ltd -Ernakulam, Kerala.

Hindustan Newsprint Limited- Kottayam, Kerala

Kerala Chemicals & Proteins Ltd. Cochin, Kerala

Hindustan Organic Chemicals Ltd- Ambalamugal, Kerala.

Kerala Water Authority Trivandrum, Kerala.

Hindustan Insecticides Ltd.-Udyogamandal, Kerala.

Cochin Minerals & Rutiles Ltd.-Aluva, Kerala.

National Thermal Power Corporation All Units

Binani Zinc Limited- Edayar, Kerala.

Steel Authority of India Limited - All Units

 [28]

MD

ORGANISATION GMT

STRUCTURE
DGMT
M F M
M M
C T
M MP M M M
E& J E TS OP
I

C C M C C C C C P
E E S E E E E E L PM D S DF M M M S
I E M U P T S M O M C I S P Y
& C S C &
S I
M C A
O S
O

D D D D D D D
M M M M M M M
H L L E U P (P D
T T T & r & M
1 2 S W) I
A

S S S S S S S S S S S S S
E E E E O E S A A A A A E
S T Q O O O O O O A
S C G C E C P
A A & o F
& S E
F H D
P

O P A A A
Q R S A P
C O P O O
O F

1.
O
r
g
 [29]

VARIOUS DEPARTMENTS:

Various Departments in TCC Limited

(1) OPERATIONS DEPARTMENT

 [30]

(2) MATERIALS DEPARTMENT

(3) MARKETING DEPARTMENT

(4) TECHNICAL DEPARTMENT

(5) PERSONNEL DEPARTMENT

(6) H R D / TRAINING DEPARTMENT

(7) FINANCE DEPARTMENT

(8) ENGINEERING DEPARTMENT

(9) PROJECTS DEPARTMENT

 [31]

OPERATIONS
DEPARTMENT
(1)

(1) OPERATIONS DEPARTMENT

Structure of operations department:

 [32]

MANAGER WORKS

MANAGER
OPERATIONS

PLANT MANAGER

Dy.M (AREA 1) Dy.M (AREA 2)

Senior engineers Senior engineers

Process Process engineers

engineers

Engineer of
plant

Shift in Charge

Objective of Production department:

 Reduce non confirming products.

 [33]

 Maximize the availability of electrolyze operation.

 Optimizing the specific consumption of electricity, furnace
and purification chemicals.

Duties and responsibilities of operations manager:

• Head of the operations department

• Fixes monthly target of the product based on the market
requirement
• Responsible for modification in the production process and
and responsible for the affluent discharges
• Operations manager has the administrative control over the
operations department
• Operation manager is the designated emergency controller
during any hazardous incident i.e. leakage or emission of any
toxic gas or liquid.

Duties and responsibilities of plant manager:

• Custodian of plant
• Plant manager willl plan production activities to meet the
production of target set by the operations manager.
• Plant manager has the administration control of personnel
working in the plant
• Plant manager coordinate with other managers for smooth
functioning of the plant
• Plant manager is responsible for the material consumption
• Plant manager will plan the shut down activities and carry out
maintenance work of plants.
Raw materials:

The main raw materials of TCC are;

 [34]

• Common salt (1.7MT of salt / ton of caustic soda).

• Electricity (27000 units / day).
• Water

Products and Production capacity

PRODUCTS QUANTITY / ANNUM

(METRIC TON)

CAUSTIC SODA 57750

HCL ACID 23760
SODIUM HYPOCHLORITE 172742
CAUSTI SODA FLAKES 15000
LIQUID CHLORINE 30000

Introduction to product:

Caustic soda and Chlorine are generally always discussed as a

combination, as they are in most case obtained as a co- product of
electrolysis of Brine. This process accounts for 80 % of caustic soda
and more than 95 % of chlorine production in India.

Products of TCC:
 [35]

 Caustic soda.
 Caustic soda flakes.
 Chlorine.
 Hydrochloric acid.
 Soda bleach.
Introduction to production process:

The process of manufacture of caustic soda and chlorine through

Ion exchange membrane involves following steps;

 Primary brine purification.

 Secondary brine purification.
 Electrolysis.
 Brine de chlorination.
 Chlorine treatment.
 [36]

USES OF PRODUCTS OF TCC:

USES INDUSTRIES
SERVED
A chemical for dissolving out extraneous Rayon and
matter from wood for preparing pure pulp industry
cellulose, for the production of viscose
solution.
A chemical for preparing pure cellulose Paper and
by dissolving out extraneous matter. newsprint.
Saponification agent. Soaps.

For processing of monazite and refining Mineral

of bauxite. processing

Hydrogenation of vanaspathi and oils. Vanaspathi.

Electrolytic hydrogen production of NH3 Fertilizers
synthesis.

Petroleum fractions Petroleum

Refining.
 [37]

Uses of Chlorine:

USES INDUSTRIES
For producing insecticides, Insecticides
pesticides.
Purifying water, sterilizing sewage Water
effluents. purification
For bleaching. Paper and
pulp
PVC and allied co-polymers. Plastics
Bleach agent. Sugar
Manufacture of neoprene rubber. Rubber
industry

Use of Hydrochloric acid:

USES INDUSTRY
Production of ammonium chloride Fertilizers
manufacture of phosphoric acid. .

In monazite processing for the separation Minerals.

of rare earth as chloride from thorium.
For the manufacture of PVC. Plastic.

Cleaning agent in galvanizing Engineeri

ng.
 [38]

Use of soda bleach:

USES INDUSTRY
Sterilization. Sea food industry

Bleaching of jute, paper, Paper and pulp

and pulp. industry

ION EXCHANGE MEMBRANE CELL PROCESS:

For electrolysis, secondary purified brine is fed

to the anode chamber, purified water to the cathode chamber and
while applying DC current, movement and reaction of substance in
the electrolyser will take place.

In the anode chamber, electrolysis of sodium chloride occurs,

converting chloride ions to chlorine on the anode mesh. Sodium
ions move to the cathode chamber through the ion exchange
membrane. Generated chlorine gas and depleted brine flows up to
the anode gas separator by the driving force due to the lift effects,
where the chlorine gas is separated and the anolyte is recycled
over as depleted brine.

In the cathode chamber, decomposition of water occurs, producing

hydrogen gas and hydroxide ion (OH-). Hydroxide ion forms caustic
soda together with the sodium ions that are passed through the
membranes. Generated hydrogen gas and caustic soda flows up to
 [39]

the cathode gas separator by gas lift effects, where hydrogen gas
is separated and caustic soda lye is recycled through the
circulation pipe, while a part of the caustic soda overflows as one
of the product.

Water in the anode chamber will move to the cathode chamber

through the membranes by electro-osmosis and osmosis.
Membrane does not permit the movement of chloride ions and NaCl
diffusion to the cathode chamber of the transfer of hydroxide ions
to the anode chamber. Transfer of these ions will result in loss of
current efficiency. Hydrogen ions if any, diffused from the cathode
chamber to the anode chamber will produce oxygen gas,
hypochlorite and chlorate by reacting with Chlorine gas.

BLOCK DIAGRAM OF MEMBRANE CELL PROCESS:

RA BRINE BRINE ELETROLY DECOMPOSIT DECHLO

W SOLUTI PURIFICATIO SIS ION RINATIO
N N

Cl2 H2 gas 32% Caustic

soda

Sale
s

Cl2 treatment H2 treatment CCF plant

Chlorine HCl synthesis

liquefaction unit
 [40]

Liquid Chlorine Commercial

HCl acid

CCF Plant

General description of CCF Plant

 This plant has one of the most advanced technologies.

 It is suitable to produce export grade caustic soda flakes from
NaOH solution generated in ion exchange membrane cells and
liquid NaOH solution of 50 % concentration.
 It is designed for optimum low energy consumption.
 The equipment and plant are proven design and safe in
operation.

Duties and Responsibilities of Plant Manager

 Plant Manager is the custodian of plant.

 He plans the production activities to meet the production.
 He is responsible for material consumption.
 Plant Manager plans the shutdown activities and carries out the
maintenance work of plant.
 Plant manager coordinates the operation functions with
managers of other department for the smooth functioning of the
plant.

FIRE AND SAFETY DEPARTMENT : The fire and safety

department is mainly concerned with the safety atmosphere in the
 [41]

company. It takes measures for accident prevention and contains

the damages in case of accidents and safety hazards during the
production. This includes;

 Giving fire training, safety training.

 Maintaining hydrant points, hoses, and nozzles to make them
always ready to use.
 Checking house keeping in plants.
 Regular maintenance of fire water pumps and tanks.
 Issuing personal protection equipments.
 Accident investigation in case of accidents, to find out
reasons of occurrence and to take preventive measures.
 Conducting safety mock drills.

Personal protective equipment used in the company is;

 Gloves.
 Face masks.
 Respiration mask.
 Welding shields.
 Goggles.
 Earplugs.
 Safety shoes.
 Helmets.
 Skin protective ointments.
 Gas masks.
 Safety belt
 [42]

MATERIALS
DEPARTMENT
(2)
 [43]

(2) MATERIALS DEPARTMENT

MATERIALS MANAGER

STORES PURCHASES

STORES DEPUTY MANAGER

MANAGER (PRODUCTION)

INVENTORY AND DEPUTY

INSPECTION MANAGER
(SALES) SPO
PO

DEPUTY
MANAGER (IC&MI)
 [44]

Material is an important factor of production.

Materials department of TCC plays an important role in reducing
cost and increasing the profit. Going with the technical changes, it
has a computerized purchases inventory control system. The main
materials used in the industry are given a 10 digit code to avoid
complexities in handling. The materials department is divided into
2;

Purchase department

The department handles the purchase activities of TCC. The

various raw materials needed for production are procured by this
department. The materials are purchased at the right time in right
quantity from the supplier. Materials are procured as per the
request of inventory control section.

Steps in purchasing

• Purchase indent: Indenter raises Material

procurement request (MPR) to the inventory section.
• If the material is not available, the form is sent to
purchase department.
• Enquiry: Purchase department send enquiry to the
approved vendors on the receipt of purchase indent.
• Receiving quotation: Quotation are received and
opened by a committee which contains a member of
purchase department, one from finance and one from
internal audit.
• Preparation of comparative statement: Quotation is
tabulated and purchase department prepare
comparative statement. It is send to indenter
• Approval: It is verified by audit section.
 [45]

• Concurrence from audit department is obtained.

• Purchase order: File is send to the concerned party.

Store and Inventory control department

Stores department stores the raw materials of about 6000 items

stored which include raw materials, chemicals, electronic goods,
equipment, sparer etc. The various items are given 10 digit codes
for easy handling. It has computerized system of material
handling.

Steps in receiving materials

• Visual inspection: To first check the purchase order.

Purchase order number is checked. Only after this the
material is received and stored.
• Preparation of receiving reports.
• Inspection report: Check whether the material is real.
Inspection is done by DMIC. Inspection report is made.
• Payment: Indenters check the material, receiving and
inspection report is dispatched to accounts department.
• Preparation of rejection report: If the material is not in
proper condition, goods rejection report is prepared. It is
send to purchase department. They inform this to the
supplier. New supply is done only after this.

Inventory control
 [46]

Inventory control is an essential function of stores department. It

helps to reduce cost and increase profit of organization. If material
is not coded, codification is done by DMIC. For controlling the
inventory, certain levels of inventory such as maximum, minimum
and reorder level is prepared. When the stock reaches the reorder
level, purchase request is made.

Inventory Control Technique used at TCC

ABC Analysis: it is based on consumption. Here the inventory is

divided into 3 categories, ‘A’, ‘B’, and ‘C’ based on the value of
stocks. Among the various items in the stores 10 % cover 70 % of
total cost these stocks are included in ‘A’ category. Another 20 %
of stock covers 20 % OF total cost and falls in category ‘B’. The
remaining 70 % of materials in the stores contribute 10 % of total
cost of materials and are included in the ‘C’ category. Different
controlling techniques are applied for each category.

Objectives of Inventory Control

• Unwanted piling of inventory is prevented.

• Material codification to avoid duplication.
• To determine the item to be stored.
• To keep suitable records
• To determine which and how much to replenish.
• To disclose obsolete item.
 [47]

MARKETING
DEPARTMENT
(3)
 [48]

(3) MARKETING DEPARTMENT

AGM

Director of Finance

A G M (Marketing)

Manager (Sales)

Dep. Marketing
Manager

Asst. Sales Officer

Senior Assistant

Junior Assistant
 [49]

Marketing department in TCC is product centered with

separate personnel entrusted to each product. TCC is the only
chlor-alkali company in Kerala. So firm has more or less
monopolistic market in Kerala. TCC gave primary important
towards satisfaction of customers. Type of market is buyer market.
Marketing department consists of an officer section and an issue
section. All documentation work comes under office section. All
works relating to sales comes under issue section. TCC will adopt
marketing strategy according to product nature, market situation,
demand of product etc. TCC gained about 80% of market in state.

The main functions of office section;

 Preparation of sales quotation, letters, amendments etc

maintenance of sales officers register, books and other
necessary information.
 Preparation of sales budget, sales plan, monthly allotment
etc correspondence with parties, issue of sales officers and
follow up of routine and regular matters.
 Preparation of sales orders, dispatch, and delivery notes etc.
 Upkeep of all files up to date.

The mains function of issue section;

 Preparation of schedule of dispatch and actual dispatch.

 Execution of sales offers.
 Advising parties about the dispatch effected.
 [50]

THE MARKETING MIX:

 Product
Products of TCC include Caustic soda, Caustic soda flakes,
Chlorine, Hydrochloric Acid and Sodium Hypochlorite. The
industries served are soap, insecticides, pharmaceutical,
chemicals, mineral processing, disinfectant, textile, rubber,
water purification and petroleum. The only branded product is

soda bleach and the brand name is “EKO CLEAN”.

 Price
The Company has adopted a differential pricing
policy. The price is fixed through negotiation for long term
contracts. For small customers price is fixed from time to time.

PRICE LIST:

PRODUCT PRICE PER

TONN

(RS)
CAUSTIC SODA 25500

CAUSTIC SODA FLAKES 26500

LIQUID CHLORINE 9800

 [51]

HCL ACID 3000

SODIUM 4500
HYPOCHLORITE

Pricing Policy

The Company has adopted a differential pricing

policy. An open body named Alkali Manufacturers Association of
India (AMAI) fixes selling price for a particular period. Price of
the product is fixed by adding the production cost, excise duty,
VAT and freight charges. Tenders are issued to the customers
with a price quoted and if it turns to be the lowest bid and
satisfies the customers, the sales are done.

The major markets are Kerala, Karnataka, and Tamilnadu.

Except Caustic soda all other products are sold in South India.
Long term contracts are being entered with consumers. Price
concessions are given to long distance customers, taking freight
element into account. For transportation of the product, raw
materials, and also all other logistics purpose, company have
given contracts to outside agencies. The contract is placed for
each material and that is done in an annual basis.

 Place
Channels include direct selling to customers. For
Caustic soda, there are agencies outside Kerala for marketing.
The entire marketing functions are done from company
Headquarters at Udyogamandal and not by any marketing office
outside company. All payments take place through State Bank of
Travancore.
 [52]

 Promotion
All the products are industrial products. TCC is only
manufacturer of the Chemical product in the public sector. But
it lacks a good promotion policy to withstand competition from
private sector. The customers are aware of the existence of
the company and when and how to get the product. Hence
there are not much promotional activities. Marketing factors is
price, which depends on the national and international price.
The company does advertise in some academic and trade
journals like Chemical Magazine etc. The promotional activities
are done also through company website (www.tcckerala.com).

The competitors

There are about 40 companies in India, which are producing the

same kind of product that of TCC. In the 40 companies 12
companies are in south India. All chemical industries are in private
sector except TCC.

• Chemfab Alkalies Ltd.Pondichery.

• KEM Pab alkalies Ltd.
• Andhra sugars Ltd.
• D C W.Ltd Mettoor.
• Kothari Petrochemicals Ltd.
• Tamilnadu Petro Products Ltd.
• SPIL, Chennai.
• Sree Royalseema Alkalies and Allied Chemicals. AndhraPradesh.
• Chemplast, Metoor.
• Chemfab. Pondichery.
• BILT, Karnataka.
 [53]

• Sirpur Paper Mills, Andhra Pradesh.

Major customers of TCC are:

Hindustan Lever Limited-Cochin, Kerala

• Indian Rare Earths Ltd-Udyogamandal, Kerala

• Tamil Nadu Paper Mills Limited Pugalur, Tamilnadu
• Pigments India Ltd., Chalakudy, Kerala
• Indian Oil Corporation, Ernakulam, Kerala
• Mysore paper Mills Ltd., Bhadravathy, Karnataka
• Fertilizers & Chemicals Travancore Ltd., Ernakulam, Kerala
• Travancore Titanium Products Ltd., Trivandrum, Kerala
• Kerala Minerals & Metals Ltd., Kollam, Kerala
• Hindustan Zinc Ltd (All Units)
• Hindalco . Ltd -Ernakulam, Kerala
• Hindustan Newsprint Limited, Kottayam, Kerala
• Kerala Chemicals & Proteins Ltd., Cochin , Kerala
• Hindustan Organic Chemicals Ltd., Ambalamugal, Kerala
• Kerala Water Authority Trivandrum, Kerala
• Hindustan Insecticides Ltd., Udyogamandal, Kerala
• Cochin Minerals & Rutiles Ltd., Aluva, Kerala
• National Thermal Power Corporation (All Units)
• Binani Zinc Limited, Edayar, Kerala
• Steel Authority of India Limited, (All Units)
• Karnataka Soaps & Detergents, Mysore, Karnataka
• Nuclear Fuel Corporation Hyderabad, Andra Pradesh
• Kudramukh Iron Ore Ltd., Mangalore, Karnataka
• GTN Textiles Hyderabad, Andra Pradesh

Marketing strategy of TCC

 [54]

Organization has adopted a strategy for their product nature,

market situation, demand of the product, competition etc. In
Kerala, TCC is facing an oligopoly. TCC gained about 80% of total
market share.

Market Analysis:

During the year 2005-2006, the company could achieve a record

turnover of Rs 1.26crores (including excise duty). This was due
to higher production, increased demand and better sales
realization. There was recession in the realization towards the
end of the financial year, but it was not reflected on Travancore
Chemicals Cochin Ltd, as the contracts were made earlier. The
indications are that the market will improve during the first
quarter of the next financial year.

Activities of Marketing Department: Whenever a

company places advertisement requiring chemicals like Caustic
soda, Lye flakes, with the specification for the chemicals payment
terms, quantity required, validity period, the companies ready to
supply (like TCC) will send tenders to the required company. This is
also known as tender document. In a tender document mainly 2
facts are specified.

a) Technical bid:
This means specifications about the product,
quality aspect of product, how much quantity can be given
within a period as specified by the customer company. These
terms are well explained in the technical bid.

b) Price bid:
 [55]

This is the part of tender document, which

specifies the basic prices of the company products.

The document rate is given for bulk purchasers, payment terms are
also explained.

Along with this offer is placed to the customer company which will
be attracted with Earnest Money Deposit (EMD). This deposit is for
the purpose of assuring the customer company that if they accept
the TCC offer, certainly the product will be supplied to the
customer. The deposit will be refunded by the customer company
after the purchase is made. The EMD is only attached in case of
bulk purchases.

After accepting the offer placed by TCC the customer

company will place a purchase order. The purchase order explains
the details of the product, quantity, basic price etc. Sales order is
placed and will be verified by Deputy Marketing Manager (DMM).
He makes arrangement in respect of supplying the product to the
customer. The company is also supplying 2 – 3 tones of quantity to
small customers. The acceptance offer is usually by selecting
lowest price from the collected tenders, if price of TCC is higher
than any other parties those parties will be called upon and
negotiations will be done so as to bring the price lower. If price is
not lowered the offer will be rejected.
 [56]

TECHNICAL
DEPARTMENT
(4)

(4) TECHNICAL DEPARTMENT:

There are two main sections in this department

 [57]

• Safety and pollution control

• Technical service section

Technical service section:

Reports are maintained on daily as well as monthly basis and

internal as well as external basis. The reports are sent to all other
departments

Daily report:

• Daily production calculation

• Overtime reporting
• Daily production step
• Daily production report presentation
• Daily caustic soda pumping reports

Monthly internal report

• Production process report

• Material balance
• chlorine utilization
• raw salt analysis
• material consumption
• overtime monthly statement

Monthly external report:

• report to various government department and other agencies

 [58]

The main functions of this section are

- production calculation and reporting

- production stock comparison

Production calculation is done for t he entire 24 hour after

receiving the data from the plants.

Safety Section:

The safety policy of the company states that

• TCC is committed to provide every one of its employees and

the related public an accident-free and healthy environment
in its efforts to manufacture high quality products at
competitive prices. The company will comply with all
statutory requirements in this regard.
• The company will provide a work environment in which
identified hazards are controlled, if elimination is not feasible
and will provide personal protective equipments wherever
necessary.
• Accident prevention is the direct responsibility of the Line –
Management and will be an important criterion for
performance appraisal. Line – Management will ensure that
all safety measures are incorporated in the operating and
maintenance procedures as well as in any process technology
changes in the plant/infrastructure.
• Consideration of health and safety will be given proper
weightage in selection and deployment of the personnel.
 [59]

• The company will ensure that health and safety aspects are
given due consideration in decision regarding purchase of
plant equipments, machinery and materials.
• Every employee of the company shall perform his/her job
adopting Safe and proper work methods and using
appropriate Safety equipments understanding that their
career advancement is linked with SAFE performance.
• Contractors, sub-contract workers, transporters and visitors
entering the factory shall be required to observe health and
safety practices of the company in all their activities.
• All contract jobs will be carried only through the laid down
procedures with appropriate supervision.
• The company will carry out safety audits, risk assessment
studies, emergency mock drills, periodic assessment of
health of its employees as well as status of environment, and
implement remedial measures.
• Employee, consumer and public awareness where necessary,
will be imparted with the required education, training and
retraining on Safety and health aspects related to the process
and products.
• The company will include a resume of its health and Safety
performance in its annual Reports.

Safety Functions:

• Safety induction:

All new employees are given safety induction program.

This includes a general awareness about the factory hazards
and precautions use of PPE, use of fire extinguishers general
rules etc. Practical training on the PPE is also given.
 [60]

• Safety inspection and auditing:

Inspection of the plant and facilities are done on a

regular basis to identify substandard condition and practices.
The concerned authorities are informed about the inspection
findings for taking necessary corrective action. Safety audits are
conducted as per the schedules and results intimated to the
management

• Safety training

Use of PPE, use of fire extinguishers and other safety

apparatus are conducted by the safety department for the
company employees. Further training on the safe handling of
Chlorine is conducted customers, agents, transporters etc.

• Safety awareness program:

Displays of posters leaf lets, preparing news letters, circulating

salient articles from safety publications etc are done as a party
of National safety day for participating and spreading the
message of safety among the employees.
 [61]

PERSONNEL
DEPARTMENT
(5)
 [62]

(5) PERSONNEL
DEPARTMENT

MD

DF

AGM(HR)

Manager Manager
Medical Chief Public
(personn
officer (HRD) security relation
el &
officer
welfare

Ass.
Dy. manager
Personnel
canteen
officer
 [63]

Functions of personnel department

• Recruitment through professional and executive employment

exchanges and public service commission.
• Manpower planning – Ascertaining the number of vacancies
• Welfare functions – Including statutory and non statutory
welfare measures.
• Grievance handing – as per the provisions of Industrial
Disputes Act and as per Factories Act.
• Maintaining Company Discipline – As per Standing Order Act.
• Industry Relations.
• Public Relations.
• Job Description (Techniques)
• Job Specification (Techniques)
• Job Analysis (Techniques)
• Performance Appraisal
• Training.
• Staffing.
• Formulates and implements personnel policies
• Disciplinary action
• Wages and Salary Administration
• Administration
• Filing various returns relating to employees.
• Medical reimbursement schemes.

Educational Allowances

Up to 15 years services – 80 Rs per month

More than 15years service – Rs 100 per month.

 [64]

Leaves

The number of leave/holidays in a calendar year will be as

follows:

Privilege Leave – 30 days

Causal Leave – 15 days

Sick Leave – 15 days (for workmen to cover under ESI scheme)

Holidays

Paid Holidays – 13 days (including four compulsory holiday)

Bata (Perquisites or Amenities)

The Bata rates for outside duty at Ellor and for workmen
deputed for duty in TCC Colony/water treatment plant will be as
follows

If workmen attend duty for four hours or more in a shift he will

be paid Bata as follows:

In 8 - 4 shift or 4 – 12 shifts - Rs 23

In shift 12 – 8 shift - Rs 10

Gratuity

Gratuity is paid as per the Gratuity Act

Bonus
 [65]

Production Bonus

Production Bonus is paid on the basics of production. A

production linked bonus is given to the employees and this
scheme is called “Monthly Bonus Scheme – 1998”. As per this
scheme the employees cooperate to maximize production and
minimize consumption of raw material and eliminate wastes.

Attendance Bonus

Attendance bonus is paid to all permanent workmen on payroll

month basis along with wages for each month as per the
schedules given below. However in a payroll month in which the
working days stipulated below are inadequate and a workman
attended all the available working days, he will be paid full
Attendance Bonus.

• If attended normal duty for a minimum period of 24 days in

a payroll month – 2 days wage extra
• If attended normal duty for a minimum period of 22/23
days in a payroll month – 11/2 days wage extra.
• If attended normal duty for a minimum period of 20/21
days in a payroll month – 1 days wage extra
• Incentives – A zero accident incentive is given to
employees.
• Uniform – Cloth for stitching uniform will be issued every
year, as follows:

Permanent Workman – 2 pants and 3 shirts, terry cotton

Permanent Female Employee – 2 sarees and 3 Blouse pieces terry

cotton.
 [66]

Permanent Security – 2 pants and 3 shirts, terry cotton.

Permanent Attendees – 2 pants and 3 white shirts, terry cotton.

Washing Allowance

Workmen who are given uniforms will be paid Rs 50 per month.

Foot wears – All permanent workmen will be provided with a pair of

safety shoes every year .All female permanent workers will be
given a footwear allowance of Rs 150/-per year

Trade Unions – There is no labor unrest in the company for the past
few years. An atmosphere of trust and mutual understanding is
developed between Management and labor Union.

There are 3 main recognized Unions and they are as follows:

1) TCC Employees Association – Independent Union

2) TCC Employees Union - Affiliated to INTUC
3) TCC Thozilalee Union - Independent Union
The unrecognized unions are

1) TCC staff and Workers Association – Affiliated to AITUC

2) BMS

Methods of Training
 [67]

Both on the job and off the job training methods are used.

Grievance Redressal

Grievance Redressal committee is Statutory. It is to be legally

maintained. Trade Unions are satisfied with the present conditions.
Hence in TCC Grievance Redressal Committee is not there, as here
exsists a good employee - employer relationship. Grievance
Redressal Committee consist of an experienced and efficient team
of personnel department.

Morale Level- the employee morale level is very good.

Welfare Activities are of 2 types

• Statutory
• Non statutory
Statutory welfare activities are as follows:

Canteen Crèches, Drinking water, Storing and Sitting, Bathroom,

Rest Shed, Welfare Officer, Gratuity, Ambulance, Dispensary,
Medical Officer, Washing Allowance, and Bonus under Bonus Act
etc.

Non Statutory welfare measures are Recreation Club,

Transportation subsidiary, Nursery School, Leave for part time
course, Library quarters, Accident benefits etc.

Various other incentives schemes:

• Higher Educational Loans with maximum limit Rs 5000 per

year.
• Scooter Allowances – 112.50 per month.
• Bus Subsidy – 75% of actual fare (Perquisites and Amenities)
 [68]

• Tool Allowance – Rs 75 per month.

• Special Allowance.
• Higher Education Allowance
• Acting Allowance (Perquisites and Amenities)
• Privileges Leave (P.L). PL can be accumulated to 300 days
and sick leaves up to 120 days.
• HRA (House Rent Allowance) at the rate of 10% of the basic
pay (Perquisites or Amenities)

HRD/ TRAINING
DEPARTMENT
(6)
 [69]

(6) HRD/ TRAINING DEPARTMENT

Functions of the training department

a) Identifying training needs

b) Imparting the required training
c) Maintaining training records.
Scope

• The procedure covers all aspects of training. Arrange

suitable training for employees for updating skills based
on the identified training needs.
• Training advisory committee is responsible for suggesting
training requirements of the various departments and
disciplines.
• Formulating training program on yearly basis
• The committee proposes a training calendar every year.
• Training needs for the years are identified and recorded by
the department head.
The details are handed over to the training department by
respective department head. Training department does
compilation of the identified training needs of the employees.
Necessary training programs are arranged by training
 [70]

department to cater the identified training needs of the

employees.

Training department organizes training programs using

internal faculty or engaging faculty from reputed
organization. The training department in consultation with
concerned department heads organizes in house training
programs on special requirement. When employees attend
training programs conducted in house, a feed back about the
usefulness of the training is obtained and consolidated. The
concerned department heads evaluates the feedback from
the participants after a period of 2-3 months to ascertain the
effectiveness of the training programs.

Employees are also sent for training to other reputed

institutions nominations for sending employees for training in
such institutions outside the company are put up for approval
of the appropriate authority as per the guidelines issued by
the company from time to time. The employees attending
outside programs submits a feedback on the trainee
undergone the training department.

The achievement against annual training calendar is reviewed

half yearly by department helps for the number of programs
held, number of employees participated for each programs,
the highlights of training effectiveness feedback etc.

The training department maintains a register on the training

program attended by the employees. Training department
maintains the format received from participants after getting
it evaluated by the concern department head regarding the
effectiveness of training. The managerial personnel of the
company are imparted training to improve their managerial
capabilities at the HRD centre of the company and outside
 [71]

institutes depending upon the needs identified by the head of

the department.

Workers Participation in Management

TCC encourages its workers to take part in the

management of the company. The workers are often
consulted through their union while implementing major
welfare programs of the company. In addition to this the
workers are also included in some of the committee for taking
management decision, which includes

a) Canteen management committees.

b) Safety committees.
c) Shop floor committees
d) Grievance committees
e) Provident fund trust
f) Tri party committee
g) Complaint committee relating to sexual harassment
against women.
 [72]

FINANCE
DEPARTMENT
(7)

BOD

DIRECTOR FINANCE

Finance controller is having the overall

responsibility
DFM COSTING of ESTABLISHMENT
theCONFIDENCE
DFM financeAND department which includes the
DFM CASH DFM MARKETING
coordination of audit, Board meetings and company taxation.

Deputy Finance Controller co-ordinates the function of bill

SENIOR
passing, establishment section, Debt collection, cash and bank.
ACCOUNTING
OFFICER
A
The internal audit function is carried out in the company by
O
A
the internal audit section headed by the Chartered Accountant.
A
Regular reports are given to the department heads for
O taking
E
corrective actions
O where necessary, which is submitted to the M.D.
S
A
The company has an effective budgetary control system. The
T A A B
budgets are reviewed and deviations analyzed
O and necessary
A C O O I
corrective action is initiated. Important variations
E relating to raw
B
A G P L
L D
S A F L
I P
H S
S
 T

[73]

materials, furnace oil, electricity etc are analyzed and furnished to

various levels of management for are analyzed and furnished to
various levels of management for corrective actions. The key
budget factor is the power availability which is estimated and a
rough picture of anticipated power shortages is drawn up.

The main function of bill section is passing of bills, which

is done after checking quotation, order and products received/
work achieved. Bills are passed after seeing that the material
received is in conformity with the purchase order. The finance
department in TCC handles the Management Information System
(MIS).

Finance is considered as the vital part of any business

organization. It is the function which controls the procurement and
allocation of funds in the business operations. In TCC a well
developed and effective finance department is functioning.
Financial controller is the Head of the Finance Department
The main functions of the finance department are:

1. Generation of funds and Utilization of funds

2. Treasury Operation

3. Financial book keeping and finalization of accounts

4. Cost Recording

5. Sales Accounting

6. Bill Passing

7. Budgeting and Financial Control

8: Preparation of Wage Bills

9. Preparation of Invoice
 [74]

Senior Accounting Officer confidential is reporting to DFM.

Preparation of Balance Sheet is done in the general accounts
section. TCC has an exclusive PF Trust for their employees.
Chairman of P.F Trust is F.C Company give money to the trust.
Trust invests this properly. Retirement benefit issued from here
itself. The company’s liability towards gratuity to employees is
covered by a Group gratuity scheme with the LIC of India.

Significant Accounting Policies

1. All revenues, costs, assets and liabilities are on the accrual

basis, except customs duty claims and insurance claims

2. Sales exclude excise duty and sales tax.

3. Inventories valuation

a. Stock-in- Trade: Caustic Soda lye and flakes are valued at

works cost or net realizable value, which ever is lower. By
products are valued at net sales realization during the year.

b. Raw materials, Mercury, packaging materials, fuel oil, stores

and spares are valued at weighted average cost

c. Tools and equipments are shown at revalued cost

4. All fixed assets are carried at cost less depreciation. Interest

on loan during the period is added to the cost of fixed
assets.

5. Depreciation

a) For plant and machinery depreciation is calculate don a

straight line basis specified in schedule XIV to the
company’s act, except for the membrane, whose life is
only 4 years.
 [75]

b) For buildings, service equipment, furniture, fixtures,

office equipments, electrical installation etc.,
depreciation is calculated on a Written down value basis
at the rates specified in the Act.

6. In foreign exchange transactions all assets and liabilities are

translated at the relevant exchange rates at the end of the
financial year.
 [76]

ENGINEERING
DEPARTMENT
(8)

(8) ENGINEERING DEPARTMENT

 [77]

CHIEF ENGINEER

DEPUTY MANAGER
ENGINEERING

SENIOR DRAFTSMAN

DRAFTSMAN

The engineering department has been divided into four

departments:

A) ELECTRICAL DEPARTMENT.

B) MECHANICAL DEPARTMENT.

C) INSTRUMENTATION DEPARTMENT.

D) CIVIL DEPARTMENT

ELECTRICAL DEPARTMENT
 [78]

There are two functions for this department:

A) OPERATIONS

B) MAINTENANCE

Operations:
Electrical supply is received from Kerala state electricity board
(KSEB) through substations. DC (Direct Current) is needed for
electrolysis and AC (Alternating Current) is converted into DC in
rectifier plants. AC is used for auxiliary purpose. The following are
the functions of the operational section

A) Ensuring uninterrupted Power supply

B) Man management

Maintenance:
Section is headed by a Chief engineer. In planning and
implementing on engineering works the section also provides
assistance to project development of new project.

MACHANICAL DEPARTMENT
Mechanical section found to be backbone of TCC. All type of
manual maintenance is handled by this section and look forward to
maintain the machinery in the best possible manner and ensure
healthy and sound flow of works within the organization.

Objectives

• To ensure all equipment engaged in production are in good condition.

• To cut down time of critical equipment.
 [79]

• To reduce cost due to inefficiency in equipment handling

The functional setup of maintenance department includes:

A) Electrical maintenance

B) Electrical utility – Air conditioner maintenance, plant lighting, motor for

pumping water

C) High tension – Maintenance of high tension equipments

INSTRUMENTATION DEPARTMENT

Instrumentation is a section that comes under engineering

department

• Main functions of instrumentation department are :

• Plant processing operation & Control of plant and equipment

• Keeping record for it

• The maintenance or up keep of equipments

CIVIL DEPARTMENT

Civil section is an independent department headed by chief

engineer. The main role of this section is the construction of the
building and other premises of the company. It is also engaged
with the social task to ensure the smooth flow of industrial
activities.
 [80]

The main functions of civil department are

• Maintenance of existing building.

• Painting and insulation.

• Tender issue for civil works.

PROJECTS
DEPARTMENT
(9)
 [81]

9) PROJECTS DEPARTMENT

GENERAL MANAGER

MANAGER PROJECTS

CHIEF ENGINEER PROJECTS

DEPUTY MANAGER
PROJECTS

The main function of the project department is the execution of

new projects for the company. It is an independent unit with a
different function. Their main functions is to prepare feasibility and
to invite tenders for execution of new projects
 [82]

• Functions of project department

• Involves planning , feasibility study and implementation of new projects

• Preparation of detailed report

• Preparation of feasibility report ( if it is approved by the management )

• Invitation of tenders through advertisement

• Evaluation of tenders

• Agreement

• Execution

• Hand over the new project to the operation department

The company has submitted the revised detailed project report (DPR) for the
enhancement of caustic soda production capacity from 175 TPD to 225 TPD by the
addition of another 50 TPD membrane cell caustic sod plant to the government for
approval. The revised project cost is Rs.53 crores and is proposed to be financed by
internal generation and commercial borrowing. The project implementation period is 22
month from the date government approval.

The company has signed a contract with UHDE India limited for the basic and detailed
engineering services for a horizontal brine saturator system and modification in the
existing secondary brine purification system in the caustic soda plant. In order to study
the technical and commercial feasibility of the proposal for supplying excess hydrogen gas
available after internal consumption to HOCL, Ambalamugal through underground
pipeline, the company engaged M/S. FEDO, udyogamandal to prepare a DPR. As per the
DPR prepared by FEDO the total estimated financial outlay for the proposal is
Rs.1923lakhs.
 [83]

The company has a proposal to transport raw material and products through barges with
the support of inland water authority of India. The total capital cost is estimated to be
Rs.188.62lakhs.
 [84]

SWOT ANALYSIS

STRENGTH

• The company is located at the centre of the industrial

belt where maximum consumption of Chlor-alkali
products takes place.
• TCC is the only Chlor-alkali unit in the state. So it has the
advantage in the pricing policy. It means that they can follow
a flexible pricing policy.
• Products of TCC are basic chemicals and are considered to be
building blocks of the chemical industry.
• TCC is the pioneer in the Chlor-alkali market and has created
reliability and credibility among its consumers.
• It has good strength of skilled work force, educated staff and
professionally qualified managers.
• Company has a very good track record of physical and
financial performance in the past.
 [85]

• Company has excellent infrastructure facilities including

nearness to national highways, railway lines, and seaport and
airport facilities.
• Natural resources like water are available as it is situated in
the banks of river Periyar.

WEAKNESS:

• Company has surplus manpower that is around 842

employees. Hence employee cost is high when compared to
industry standards.
• Logistics is difficult as the raw materials are to be bought
from distant places.
• Major markets are distantly located. So unit suffers increased
transportation costs.
• KSEB enjoys monopoly in supplying power in the state and
the staff size has undergone many fold increase in a short
span of time.
• Financial options are limited as the company is under the
State government.
• Delay in decision making is always there, especially in cases
related to product diversification and expansion of
production capacity.

Opportunities:

 New project of synthetic rutile plant: Rutile companies are reaping huge profits in the
state due to the availability of raw material, within state. There is a high price in the
international market for rutile and related products.
 Proposal for a Hydel project will benefit TCC and the power so obtained can be
utilized for running of the plants of TCC thus reducing the cost incurred on
electricity.
 [86]

 Economic development of the country may result in a higher demand for products
especially chlorine in near future.

Threats:

 Hike in price of electricity.

 The import duty policy of central government is not fair and caused periodic
fluctuations in the price of the company’s product.
 The industry is in matured phase of life cycle, hence there is a low prospect
for growth and might be on a decline path if substitutes are not found out.
 The infrastructure of the company is obsolete compared to others.

CONCLUSION
TCC Ltd. is a state owned undertaking engaged in
manufacture of basic chemicals like Caustic soda, Hydrochloric
acid, Chlorine, Sodium hypochlorite etc. These are required by
various industries within and outside the state. TCC’s products
have national reputation for quality and the company gives high
 [87]

priority to customer satisfaction. It is an inorganic chemical

company. TCC takes vital steps at the right time to make
innovations in technological up gradations as well as
organizational improvements, which had helped it to face problems
quite efficiently. Upton 1995-1996, company had recorded a steady
growth in production as well as in sales. After that period even
though the sales remain on an average, the company could not
make any profits. This was due to the implementation of
Membrane Cell Technology in place of Mercury cell technology. The
higher electric charges compared with other states also affected
the profits of the company. TCC enjoys a lion share of the market
in Kerala and would continue to do so.

The joy and hardship to build a good career was

reflecting from the Department heads at TCC, which has motivated
me to the greatest extent and fills confidence in me to face the
challenges in my life. As per the study conducted in the
organization, the capacity of production is increasing and the
company is moving into more profitable stages. The 25 days I
spent at TCC had created a concrete impression in the
development of my career.

FINDINGS:
 [88]

 The major customers of TCC are pharmaceuticals companies,

soap industries, insecticides and pesticides industries, paper
industries and rayon industries.
 The major competitors are SPIC and Chemplast.
 Location preference, reference and quality are the major
criteria for selecting manufacturer.
 Company follows management by convenience and not
management by objectives.
 Pricing policy of TCC is an average, according to the
industrial standards.
 TCC have a flexible credit policy, they give credit facility up
to 30-45 days and they are getting credit of 60 days from
suppliers.
 The customers have reported no rejection of TCC product,
which shows the product satisfaction.
 In case of lead time, it was noted that order processing took
too much time due to lot of work.
 The strength of TCC is the quality of their products, services
and the delivery.
 No strikes have been reported for the last 10 years, it shows
the relationship of workers and management as better.
 The company is depending heavily on electricity and around
60% of their product price is for this.
 New technology of Membrane cell has the advantage of
pollution free environment and also it brings about 30%
reductions in electric power requirements.
 No major environment pollution has been reported for the
past 50 years of operations.

Suggestion:
 [89]

 The company must try to activate the R & D cell in order to have new inventions
in this field.
 The company has to improve the supply of the product, if possible.
 TCC should take certain adjustment in the price of the product.
 In order to increase the production the company may try giving some motivation
to the employees.
 For the smooth functioning they must invest a reasonable amount of working
capital.
 The company shall take necessary actions to maintain the ratios at the standard
level.
 Improve the first aid facilities by providing free medicines and treatments.
 TCC should try necessary steps to increase the net profits.
 TCC should persuade workers to use safety equipments.

MY EXPERIENCE IN THE ORGANISATION

It was a very good experience for me to do an organisation

study in TCC. Through this study I got a clear idea about the functioning of organisation. I got
great support from the heads of the organisation. Information about the board of directors,
company’s history and growth, vision, mission objectives, future plans etc were clearly defined
by them. If I have any doubts I can contact them any time when needed. The most important
thing I understood is that they concentrate more on security, safety and cost-effectiveness and
customer satisfaction. And this one month project helped me a lot to know that how
successfully they MOVE THEIR BUSINESS FORWARD.

BIBLIOGRAPHY:
 [90]

 C.R. Kothari, Research Methodology, New Age

International Publishers, second edition, 2004.
 Philip Kotler, Marketing Management, Prentice Hall of
India Private Limited, Tenth Edition, 2002.
 Annual Report 2008-09, Travancore-Cochin Chemicals
Limited.
 www. tcckerala.com
 www.moneycontrol.com
 [91]

APPENDI
X

COMMON ABBRIVIATIONS
 [92]

GM: General Manager

DGM: Deputy General Manager
AOGA: Accounts Officer General Account
AOPF: Accounts Officer Provident Fund
AOC: Accounts Officer Cash
MM: Marketing Manager
DM (P): Deputy Manager Production
DM (S): Deputy Manager Stores
NaOH: Caustic Soda
Cl2: Chlorine
HCl: Hydrochloric Acid
PM: Personnel Manager
CO: Catering Officer
CSO: Chief Security Officer
M Ds: Manager Dispensary
SI: Security Inspector
ASI: Assistant Security Inspector
DGMT: Deputy General Manager Technical
DGMC: Deputy General Manager Commercial
MHRD: Manager Human Resource Development
MTS: Manager Technical Services
CE: Chief Engineer
CE TS: Chief Engineer Technical Service
CEM: Chief Engineer Mechanical
ME: Mechanical Engineer
DERT: Deputy Engineer Technical
SE: Sub Engineer
MPJ: Manager Projects
MOP: Manager Operations
 [93]

EGM: Energy Manager

MEI: Manager Electrical and Instrumentation
MS: Manager Stores
PLM: Plant Manager
DMPR: Deputy Manager Production
DFC: Deputy Finance Controller
CE ( CP & ISO): Chief Engineer Corporate Planning and ISO
[94]