CHAPTER I

INTRODUCTION

1.1 INTRODUCTION

Almost every organization in one way or another goes through a periodic

ritual, formally or informally, known as performance appraisal. The formal
performance appraisal has been called a tool of management, a control process, an
activity and a critical element in human resources allocation. Uses for performance
appraisal have included equal employment opportunity considerations, promotions,
transfer and salary increases. Primarily performance appraisal has been considered
an overall system for control in an organization regarding the performance of
individuals, groups and entire divisions .Performance appraisal may be defined as a
structured formal interaction between a subordinate and supervisor, that usually
takes the form of a periodic interview (annual or semi- annual) in which the work
performance of the subordinate is examined and discussed , with a view to
identifying weaknesses and strengths as well as opportunities for improvement and
skills development.

1
PERFORMANCE APPRAISAL

After an employee has been selected for a job, has been trained to do it and has
worked on it and has worked on it for a period of time, his performance should be
evaluated. Performance Evaluation or appraisal is the process of deciding how
employees do their jobs. Performance here refers to the degree of accomplishment
of the tasks that make up an individual’s job. It indicates how well an individual is
fulfilling the job requirements. Often the term is confused with efforts, which
means energy expended and used in a wrong sense. Performance is always
measured in terms of results.

DEFINITION

Performance appraisal is a method of evaluating the behavior of employees in the

work spot, normally including both the quantitative and qualitative aspects of job
performance. It is a systematic and objective way of evaluating both work-related
behavior and potential of employees. It is a process that involves determining and
communicating to an employee how he or she is performing the job and ideally,
establishing a plan of improvement.

FEATURES

The main characteristics of performance appraisal may be listed thus:

 The appraised is a systematic process involving three steps:

a. Setting work standard.
b. Assessing employees actual performance relative to these standars.
c. Offering feedback to the employees so that he can eliminate
deficiencies and improve performance in course of time.
 It tries to find out how well the employee is performing the job and tries to
establish a plan for further improvement.
 The appraisal is carried out periodically, according to a definite plan. It is
certainly not a one shot on deal.
 Performance appraisal is not a past-oriented activity, with the intention of
putting poor performers in a spot. Rather, it is a future oriented activity

2
 showing employees where things have gone wrong, how to set everything
in order, and deliver results using their potential in a proper way.
 Performance appraisal is not job evaluation. Performance appraisal refers to
how well someone is doing an assigned job. Job evaluation, on the oter
hand, determines how much a job is worth to the organization and
therefore, what range of pay should be assigned to the job.
 Performance appraisal is not limited to ‘calling the fouls’. Its focus is on
employee development. It forces managers to become coaches rather than
judges. The appraisal process provides an opportunity to identify issues for
discussion, eliminate any potential problems, and set new goals for
achieving high performance.
 Performance appraisal may be formal or informal. The informal evaluation
is more likely to be subjective and influenced by personal factors. Some
employees are liked better than others and have, for that reason only, better
chances of receiving various kinds of rewards than others. The formal
system is likely o be more fair and objective, since I is carries out in a
systematic manner, using printed appraisal forms.

OBJECTIVES

Performance appraisal could be taken either for evaluating the performance of

employees of for developing tem. The evaluation is of two types: telling the
employee where he stands and using the data for personnel decisions concerning
pay, promotions, etc. the developmental objectives focus on finding individual and
organizational strengths and weaknesses, developing healthy superior-subordinate
relation; and offering appropriate counselling coaching to the employee with a view
to develop his potential in future.

Appraisal of employees serves several useful purposes.

a. Compensation decisions: It can serve as a basis for pay raises. Managers

need performance appraisal to identify employees who are performing at or
above expected levels. This approach to compensation is at the heart of th

3
 idea ha raises should be given for merit rather than for seniority. Under merit
systems, employee receives raised based on performance.
b. Promotional decisions: It can serve as a useful basis for a job change or
promotion. When merit is the basis for reward, the person doing the best job
receives the promotion. If relevant work aspects are measured properly, it
helps in minimizing feelings of frustration of those who are not promotes.
c. Training and development programmes: It can serve as a guide for
formulating a suitable training and development program. Performance
appraisal can inform employees about their progress and tell them what skils
they need to develop to become eligible for pay raises or promotions or both.
d. Feedback: Performance appraisal enables the employee to know how well he
is doing on the job. It tells him what he can do to improve his present
performance and go up the organizational ladder.
e. Personal development: Performance appraisal can help reveal the causes of
good and poor employee performance. Through discussions with individual
employees, a line manager can find out why they perform as they do and
what steps can be initiated to improve their performance.

4
1.2 STATEMENT OF THE PROBLEM

Industrial organizations use systematic performance appraisal procedures

for both non-supervisory and managerial cadre. Need for performance appraisal
system is as follows:

 It helps the supervisor to evaluate the performance of his employees

systematically and assign that work in which they are best suited.
 It helps in guiding and controlling the behavior as well as the work of the
employees.
 It provides information to diagnose deficiencies in the employees’s skill,
knowledge and determine the training and development need.
 Maintain fair relationships with groups.

5
1.3 REVIEW OF LITERATURE

Performance appraisal is one of the most important requirements for all

successful business and human resource policy ( kressler ,2003 ) Rewarding an
promoting effective performance in organization, as well as identifying ineffective
performers for resource management (Pulakos, 2003 ). The ability to conduct
performance appraisal relies on the ability to asses an employee performance is a
difficult task. Once the supervisor understands the nature of the job and the source
of information, the information needs to be collected in a systematic way, provided
as feedback, and integrated into the organization’s performance management
process for use in making compensation ,job placement and training decisions and
assignment (London, 2003).After a review of literature, a performance appraisal
model be described in detail. The model discussed is an example of a performance
appraisal system that can be implemented aim a large institution of higher education,
within the Student Affair division. The model can be applied to top-level, middle-
level and lower level employees. Evaluation instruments are provided to assist with
implementation the appraisal system.

Performance evaluations have been conducted since the times of Aristotle

(landy, Zedeck, Cleveland, 1983 ). The earliest formal employee performance
evaluation program is thought to have originated in the United State military
establishment shortly after the birth of the republic ( Lopez, 1968 ). The
measurement of an emplyee’s performance allows for rational administrative
decisions at the individual employee level. It also provides for the raw data for a the
evaluation of the effectiveness of such personnel-system components and processes
as recruiting policies, training programs, selection rules ,promotional strategies, and
reward allocations ( Landy, Zedeck, Cleveland, 1983) In addition, it provides the
foundation for behaviorally based employee counseling. In the counseling setting,
performance information produce the vehicle for increasing satisfaction,
commitment, and motivation of the employee. Performance measurement allows the
organization to tell the employee some thing about their rates of growth , their
competencies, and their potentials. There is little disagreement that it well done,

6
Performance measurement and feedback can play a valuable ole in effecting the
organization (Landy, Zedeck, Cleveland, 1983)

PURPOSE

Performance appraisals should focus on three objectives: performance , not

personalities; valid, concrete, relevant issues, rather that subjective emotions and
feelings; reaching agreement on what the employee is going o improve in his
performance and what you are going to do (Mcheirchy, 1998 ). Both the supervisor
and employee should recognize that a strong relationship exist between training and
performance evaluation (Barr, 1993 ) A portion of the process should be devoted to
an examination of potential opportunities to pursue advancement of acceptance of
more complex responsibilities. The employee development goals through
developmental experiences or education (Barr, 1993). Encouraging development is
not only a supervisors’s professional responsibility, but it also motivates an
employee to pursue additional commitments. IN addition, the pursuit of these
objectives will also improve the prospect that current employee will be qualified as
candidates when positions become available. This approach not only motivates
current performance but also assist the recruitment of current employees as qualified
candidates for future positions(Barr,1993)

BENEFIT OF PRODUCTIVE PERFORMANCE APPRAISALS

Employee learns of his or her own strengths in addition to weaknesses:- New

goal and objectives are agreed upon. Employee is an active participant in the
evaluation process the relationship between supervisor and employees is taken to an
adult to adult level. Work teams may be restructured for maximum efficiency.
Employee renews his or her interest in being a part of the organization now and the
future. Training reeds are identified. Times is devoted to discussing quality of work
without regard to money issues. Supervisor becomes more comfortable in reviewing
the performance of employees. Employees feel that they are taken seriously as
individuals and that the supervisor is truly concerned about their needs and goals.

7
 Any performance appraisal system used to make employment decisions about
a member of a protected class ( i.e Based on age , race, religion, gender or national
origin) must be a valid system( an accurate measure of performance associated with
job requirements). Otherwise, it can be challenged in the courts based on Title VII of
the 1964 Civil Rights Act, the Civil Rights Act of 1991 and the age Discrimination
in Employment act of 1975 (London, 2003).

Effectiveness of performance appraisal system it is argued is a function of applying

the right system in right context. By Klein; the art of appraisal

Performance appraisal system are “home work” that provides the information you
need in order to make appropreate administrative recommendations, hold
meaningful feedback discussions with staff members, and determined were
performance improvements is required. By Marion E. Haynes
Managing Performance

The effectiveness of an Appraisal system is determined by the quality of

communication between the manager and staff member, not by multiple raters,
complex scoring methods, or the form used. - By John Drake; performance
Appraisal: One More Time

Performance appraisal can actually be counter-productive for employees who are in

the greatest need of training an further development – By Victor Buzzottan ;
Improving your Performance Appraisal.

One of the measure reason performances management and performance appraisal

fail in that too much time is spent on appraising performance using vague criteria,
and not enough time and effort put into helping employee understand what his job is
about, and the goals and objectives he/she is expected to achieve to be successful.
Learn to do goals settings painlessly. –By Robert Bacal; Learn to plan
Performance and set employee goals

Maximizing and measuring our own performance and that of the people who work
for us is a basic talent of the work environment. Always use of simple told and

8
approach that can be achievement performance plan. -By Zack Mansdorf ;
Performance Management; Identifying work goals

Most managers and supervisor today are attempting to quantify their departmental
objective and pass them on their employees through performance standards. Despite
the simplicity of this management – by- objective approach, deadlines are missed,
quality is relatively poor and productive is low. The reason for this may not be the
fault of the employees carrying out the work. The cause is most often associated
with the immediate supervisor’s lack of attention to the realities surrounding
objectives and performance standards require a careful analysis of all the relevant
issues.-By Gregory Isaac; Plan for performance

Organization striving to develop an open and participative has begun to give

employees the chance to say what they think of their managers. Such appraisals can
only work in a culture where managers are willing to listen and learn and effect any
necessary changes as a result. –By MandhukarShukla; Upward Appraisal and
Organization culture

At one stage performance appraisal relied mainly on personality characteristics.

Subordinates were being appraised by their superior on the extent to which they
exhibited characteristic like, tact, willingness, enthusiasm, and maturity. Mangers
were being put into position of psychologists and required to make subjective rating
without any point of reference expect their own opinion – By Bob Nelson;
Performance Assessment

Performance appraisal is apart is a part of overall performance management system

of an organization . Through the appraisal process, gap between an individuals
agreed performance standards his actual performance is assessed and appropriate
strategies are drawn for subsequent performance cycle. This is a useful performance
enchancement exercise. In many organizations, PMS is linked with other systems
like salary &Benefits, training &development and success planning – By H.K.
Shukla; straties Human Resource management

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1.4 OBJECTIVES OF THE STUDY

 To study the effectiveness of the current performance appraisal system in

English Indian Clays Ltd.
 To analyse the factor affecting Performance appraisal system
 To find out opinion of the employees about the present system of English
Indian Clays Ltd.

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1.5 RESEARCH METHODOLY

Sampling design

A sample design is definite plan for obtaining a sample from the sampling
frame, it refers to the technique or procedure the researcher would adopt in selecting
some sampling units from which inferences about the population is drawn.

POPULATION AND SAMPLE SIZE

A decision has to be taken concerning a sampling unit before selecting

sample. The population for this study is from the employees of EICL. The total
population of EICL is 260. All 50 employees were undertaken for the study . In
this study the population and sample are equal.

DATA COLLECTION

The task of data collection begins after a research problem has been defined
and research design / plan chalked out . While deciding about the method of data
collection to be used for the study, the researcher should keep in mind two types of
data viz,

 Primary data and

 Secondary data

PRIMARY DATA

The primary data are those which are collected afresh and for the first time
and thus happen to be original in character. the tool used for collection primary data
is a structured questionnaire.

SECONDRY DATA

The secondary data on the other hand are those which have already been
collected by someone else and which have already been passed through the
statistical process. The secondary data has been collected from the company records,
Journals. The secondary data collected for these research was obtained from
journals, magazines, company reports and websites.

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SAMPLING TECHNIQUE

Data analysis refers to the computation of certain measures along with

searching for patterns of relationships that exist among data groups. Simple
Percentage analysis, chi- square test were used for in this study

1.6 PERIOD OF THE STUDY

Study is made among employees of English Indian Clay Ltd during the year
2011-2013.

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1.7 SCOPE OF THE STUDY

The success of industry or business establishment depends on the performance

of its employees. So periodic assessment of performance is of utmost importance to
any establishment. The EICL considers HR as very important element in creating an
environment of Technological and management excellence. The company provides
its employees with a number of opportunities to grow as the company accelerates
ahead.

The findings of the study will be useful for EICL to adopt latest performance
appraisal system. It may help in policy implications to correct the existing
performance appraisal system. The study of the performance appraisal evaluation
system prevailing in EICL therefore has vast scope and utility.

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1.8 LIMITATIONS OF THE STYDY

Any study cannot be 100% accurate at all time. This is because of the inherent
limitation that could be present in such a study.

 The project is restricted to the responses of those interviewed during the

period of data collection.
 Fear of employees could hence retain the respondent from answering the
question honestly.
 Errors can arise due to personal bias of the respondents.
 Lack of co-operation by the employees in the company while collecting data.

14
 CHAPTER 2

INDUSTRIAL PROFILE

HISTORY OF THE ORGANISATION

China clay, which find so many industrial applications in the technical world
of today, but the Industry, started working over 300 million years ago.

The deposits have been worked for 230 years and are unique in that they are
the largest in the world. Around 120 million tones of china clay have been produced
since William Cook Worthy’s first discovered it at the Tregonning Hill in 1746,
but reserves are sufficient for at least another hundred years.

The early history of the industry is naturally loosely concerned with the
discovery and production of china clays for use in Ceramics. The story , though,
starts thousands of years ago thousands if miles away

China clay, which finds so many industrial applications in the technical world
of today, resulted in Cornwall and Devon from a sequence of events that began over
300 million years ago.

The deposits have been worked for 230 year and are unique in that they are the
largest in the world. Around 120 million tons of china clay have been produced
since William Cookworthy first discovered it at Tregonning Hill in 1746 , but
reserves are sufficient for at least another hundred years.

The early history of the industry is naturally closely concerned with the
discovery and production china clays for use in ceramics. The story, though, starts
thousands of years ago and thousands of miles away.

China , the pure white porcelain used by the Chinese, was discovered
millennia ago and has always been a much –prized material. Despite many attempts
to find it elsewhere, it remained elusive untile a few deposits were found in parts of
Europe and in America early in the eighteenth century, on which the search to find

15
sources in Britain intensified. It was a quaker apothecary-cum –potter, William
Cook worthy, who at last made the discovery of clay, or kaolin, in Cornwall in 1746,
and it was realized it was of a much finer quality than elsewhere in Europe.

He experimented with various samples and in 1768 took out a attend to use the
material , soon producing items at his Plymouth porcelain factory. Until that time
English pottery had consisted of coarse earthenware and stoneware ceramics and
had suffered considerable competition from elsewhere.

As more potteries made use of porcelain, son the demand grew and by the
early nineteenth century the kaolin industry had become highly successful. With
many of the potters owning rights to mine the material for themselves. In addition m
by the middle of the nineteenth century , china clay was increasingly being used as a
was material by the developing paper industry.

Early in the twentieth century, the industry was made up of some seventy or so
individual producers, each competing on price with little regard for marketing or
standards. There was almost no capital investment or product development and
overproduction was great, wages were low and working conditions were poor.

Despite this ,by 1910 production was approaching a million tons a year and
paper had completely overtaken ceramics as the prime user. Over 75 % of output
was exported, with North America and Europe being major markets, and the china
clay industry in cornwall and Devon held a virtual monopoly on supply to the world.

MILE STONES OF THE COMPANY

1963

EICL incorporated on 18.11.1963.

1964

Commercial manufacturing started for hydrous clay at Veli, KERALA.

16
1992

Stake of English China clays Ltd, UK

(Now merged with IMERYS PTE LTS- FRANCE) in EICL brought by Thapars.

1994

Shares of EICL listed on the Bombay stock exchange.

1994

EICL commissions a specialty start plant at pondechery

2002

Capacity expansion in Hydrous clays at a Greenfield location (Thonnakkal,Kerala)

by commissioning of a R&D project for the manufacture of 25000 MTA of calcined
clay.

2005

Capacity expansion in hydrous clay at Thonnakkal, Kerala.

2007

Eicl acquired clay reserves and manufacturing assets of wolkem clays Pvt limited
at Kollam. This becomes the third manufacturing location for clay business.

2008

2MW co –generation plant commissioned at Yamuna nagar to reduce the cost of

steam and power significantly.

2008

De- merger of the investment division of EICL to Bharath starch products

limited.

2008

17
 Capacity expansion in Calcined clay at Thonnakkal ,Kerala.

2010

They have launch new technical plant for processing

The early history of the industry is , as would be expected , very much concerned
with the discovery an production of china clays for use in ceramics. China clay
occurs in deposits in the form of china clay rocks , a mixture of up to 15 percent
chin clay an up to 10 % mica, and the remainder being quarts. On e of the purest of
the clays composed chiefly of the mineral “kaolinite” usually formed when granite I
changed by hydrothermal metamorphism. Usage of the terms china clay and kaolin
is not well defined.

KAOLIN

Kaolin is a white clay that, when powdered , is used as a demulcent and

adsorbent and in dentistry, as an agent that confers opacity and toughness to
porcelain teeth.

Kaolin is al around as unseen and unsuspected; in dozens of things we use or

wear. It is possible in the magazine page we are reading, in the rubber heals on our
shoes, in the china dishes on our shelf, in the porcelain glaze in the kitchen sink, in
the latex paint you we just used t paint the spare bed room.

18
HISTORY OF KAOLIN

KAOLIN also called china clay. A pure form of hydrous alu-minium silicate
clay. There are three distinct minerals, kaolinite, nicrite, and dickite, all having
similar composition. The formula for Kaolin is usually gives as A1203 2si20
2H2O, but is also expressed as AI2Si2059(oh)4 . It occurs in clay like masses of
particular gravity

2.6 and a dull luster . Kaolin is used for making porcelain for chi- naware and
chemical

Porcelain for valves, tubes, and fittings ; as a refractory for bricks and furnace
innings; for electric insulators; as a paint and filer in paints; as a make weight in
plastics; and as an abrasive powder.

In firebricks kaolin resists spaling. Its melting point is 3200 Celsius F (1760
Celsius) but this lowers with impurities. The color of all varieties is white, but
inferior grads burn to a yellow or brownish color, and it should be free of iron.
Porcelain made from kaolin is fired astatine about 2300 celsius but the upper service
limit of the product is only about 500 celsius since it has a low heat- transfer rate
and low thermal shock resistance . Porcelain parts have a particular gravity of 2.4 to
2.0 ,a hardnes of 7.5 and a compressive strength from 60000 to 90000 Ib/in2 (414 to
621 Mpa)

When kaolin is employed as an inert colloidal pigment in paints, it is called

Chinese white. The powder is aquaphobic and can –non be wet by water, but it has
good compatibility in oils and many organic solvents. As an extender in plastics and
rubbers, it reduces absorption of wet and inceases dielectric strength. Klolin is a
decomposition product of granite and feldspar, and its usual impurities are qurartz,
feldspar, and mica,which can be wished out . The aluminum silicate RER – 45 , of
Georgia Kaolin Co.. is purified kaolin ground to a fineness of 7.9 – to 177 – in (0.2-
to 4.5m ) practices , has composition (A12 030 3 (si02) 2 , and the particles are in
thin flat plates averaging 21.7 in (.55 m) .

19
Kaolinite is one of the most common minerals. It is mined, as kaolin, in brazil,
France , Britain, Germany ,India ,Australia, Japan, China , and the south eastern U.S
states of Georgia, Florid ,to a lesser extent, south Carolina.

Chemical combination

Kaolin is a group of fin clay minerals with the chemical compositon of AI 2 0

3 .2sio 2 .2H20 which means two-layer (silicon-oxygen tetrahedral layer joined to
alumin octahedral layer) exist alternately. Clay minerals include kaolinite, nactiete,
dickite, illite, chloritem attaplugite and anauxite. Chemical compositions of kaolin
menerals are same . But each differs from by layers stacked on top of one another.

Kaolinite is the basic constituent of kaolin. Its chemical structure is AI 2 Si 205

(OH) 4 (theoretically 39.8%alumina+ 46.3% silica+13.9%)but elements are not
diverted from this ideal composition.

Chemical Formula : Al 203.2Si0 2.2H 20

20
Chemical combination :

Al 203 32.9% min

Sio 42.3% Min
Fe 203 0.6 % max
K 20 3.o %max
MgO 1.6 %max
Na 20 0.6 % max

Physical properties

Sp Gravity 2.6
Bulk density 0.821
Oil absorption value 25 to 35
PH of 10% sol. 7 to 8
Water soluble salts Not more than 2%
Refractive index 1.5%
Loss on ignition 13 to 15
Water soluble salts matter Not more than 1%

Industrial Application

Paper It is mainly used as competent filler and as a coating

pigment in paper manufacturing.
cement Kaolin is a valuable admixture of cement/ concrete
applicatons which exhibit favourable engineering
properties including filler effect.
Plastic Used as mineral fillers in plastics.
Fiber glass It increases compressive and flexural strengths of fiber
grass.
Paints China clay is used in wide varieties of plants like
distember, wood primer, putties

21
Major Companies Producing KAOLIN

Country Company Name Imports tones 2000

USA Engelhard, Imerys, Huber and Thiele 1500

Brazil Cadam, Para Pigmentos 291

UK Imerys Goovean 66

NZ NZ China clay(Imerys) 12

China Lonyan kaolin from fujiyan 60

Total 1 929

22
World: Consumption Quantity for KAOLIN 2000-2005

YEAR Consumption Quantity ( in 1000tones)

2000 30,103

2001 30,403

2002 31,196

2003 31,676

2004 31,983

2005 32,256

2006 33,112

2007 33,876

2008 33,983

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 KAOLIN Usage

Kaolin Estimated use by sector

Sector Estimated kaolin Typical pricing Estimated growth trend 2001-

k/tones by Region $US/tone 2010%
and end use.

Paper 1,755 170-390 2-3

Ceramics 3,245 30-500 5

Catalyst 35 170-250 6

Paint 220 140-260 8

Rubber 200 120-350 5

Cement 200 30-200 4

Other 518 20-500 4

Total 6200

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 CHAPTER 3

COMPANY PROFILE

English Indian Clays Limited is one of the leading manufacturers of processed

China clay in our country. The company was established in 196. It is a limited
company incorporated under provision of the Indian companies ACT 1956 and is
owned br the Thapar group, one of the industrial giants in the country.

The company has been certified to ISO 9002; 1994 since 1996 and now been
upgraded to ISO 9001: 2000, EICL has a well – equipped R&D center, which is
recognized by the department of science and Technology, Govt. of India. EICL has
been successful in maintaining strict quality control and consistent conformity to
international standards

EICL has marketing offices in Mumbai and Delhi and marketing agents in
Mauritius, South Africa, GCC, Yemen, Sri lanka, Indonesia, Philippines, and Jordan
& New Zealand.

Plant Location

UNIT ADDRESS

Clay unit Kp-111/428, TVM – 695921, Kerala

Corn wet milling unit Radaur Road, Yamuna nagar po, Haryana 135001

Bio polymet unit Kalithakuppam, madagadipet post, Manadipet commune,

pondichery 605107

25
WORKING PATTERN OF THE COMPANY

Three shifts of working time. It is a 24hr working company.

A shift 6 am to 2 pm

B shift 2 pm to 10pm

C shift 10 pm to 6 am

General shift is from 9 am to 5 pm. For plant officers and staff the time is from 8 am
to 5 pm. For office work in the night, everyday a duty officer is appointed. Casual
labourers and contract laboures are there.

Category Number

Officers and staff 94

Workers( At Veli plant and mines ) 93

Employees at SPD 46

Apprentice and trainees 28

Total 261

Vision of EICL

26
 “To be a leader in processed China clay market in Asia and to be an employer of
choice, fasting a culture that values dedication, respect and continuous”

Mission of EICL

“To provide consistently high products and materials to our customers in a safe,
timely and efficient manner, at lowest possible cost and grow with them and ensure
the growth and development of employees of the company in order to achieve the
objectives of the organization and the career of the employees”

Quality policy of EICL

“EICL is committed to processing and supply of value added Hydrous and

Calcined clay, meeting customer requirements of quality, delivery and application
support through continual improvement of the effectiveness of its quality
management system”

Corporate objective

The corporate objectives of English Indian clays are:

 To adopt transparency and responsibility in the operation and enhancement

of overall long term value of its share holders, customers, lenders and
employees .
 To ensure maximum utilization of available human resources.
 To develop services and retain customers or the range of products
manufactured by the company and to meet customer needs in terms of new
products or services.
 To procure material of required quality or quantity at most at most
competitive price for uninterrupted production and maintenance of plant with
least possible tie-ups in inventories.
 To develop services and retain customers for the range of products
manufactured by the company and to meet customer needs in terms of new
products or services.

Company’s philosophy

27
 The company’s philosophy on corporate governance is to promote and raise
the standards or system and practices of corporate conduct to attain high levels of
accountability, transparency and responsibility in its operation and enhancement of
overall long term value of its share holders, customers, leaders , customers, leaders
and employees.

Overall view

The focus during the year was on capacity increase, value addition and cost
reduction in all the businesses comprising of the 20000 MTs/annum calciner plant at
Thonnackal before schedule and with in the budget. This increased the overall
available finished product capacity to 1;400000MTs/annum during the year. Also
work on the spray drier plant at thonnackal was started in October 2003 and was
successfully commissioned now. This plant was also completed ahead of schedule
with in the approved budgets. As a result of the refined clay capacity as on date
stands at 1,75,000 MTs/annum

The corn wet grinding capacity has been raised to 150 TDP as scheduled by 31 st
march 2004, this will increase the corn wet capacity by 10%.

An additional capacity of 1500 MT per annum has been installed in pondicheri for
producing carbojet, the newly developed speciality product for textile industry.

The company as a whole registered a sales growth of 5% with a turnover of 148.58

crores. The EBIDTA for the year increased by 8% over the previous year at 27.82
crores, this is primary on account of dividend income.

The research & development centers played a major role in new product
development application support to customers and process support to the
manufacturing units.

During the current financial year the company made strategic investment in the
equity shares of Crompton greaves Ltd with the approval of securities and Exchange
Board of India. This segment earned revenue of 208. 38 lacks during 2004 – 2005
as against 28.83 lacks in the previous year.

28
 ORGANISATION CHART

General Manager

Manager Marketing Senior Manager -operations Manager Exports

Manager productions Manager - Engineering Management Trainee

Asst Manager- production Asst manager -engineering

Asst manager- Electrical

Executive - Production

Junior Executive - Production Junior executive - Engineering

Asst supervisor - Electrical

Junior Supervisor- Engineering

SIC/Engineer Trainees

Maintenance Workers (Electrical)

Senior supervisor - Productions

Maintenance workers
Plant workers

PRODUCTION DEPARTMENT

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Process in plant 1

Plant 1

Screening Operation

Filter Pressing Operation

Paddle Mixture operation

Indirect Rotary Drying

Dispatch to Lump silo Milling operation

Direct Dispatch Order Silo

Bagging Machine & Dispatch

Process in plant 2:

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 Plant 2

Screening Operation

Forced Filtration filter press

Kneeding Operation

Storage in Viscosity Tank

Feed pump

Automization

Dry Powder to storage silos

50 kg Bagging machine 1 Ton Jumbo bagging

Dispatch Truck Dispatch Truck

PLANTS

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 Plants refer to as ‘a factory, a power station or other large industrial
complex, where something is manufactured or produced.

In EICL plants are mainly concerned with processing manufacturing, labeling

and storages of calcined and hydrous clay. EICL has 3 plants. First three plants at
VELI unit and a fourth is at Thonnakkal.

PLANT CAPACITY
1 200
2 120
3 17

In plant 1 the total capacity is up to 200. In this plant the product is dried
using rotary drier, which operates at high temperature.

In Plant 2 there is a spray drier plant called ATOMIZER which does direct
drying and is also used for obtaining product in the granular from. Bothe the plants
are used for producing hydrous clay.

New calcined clay capacity of 20000 Tpa. Another hydrous clay plant with
capacity of 30000 Tpa is commissioned in 2004.

EICL had completed a pray nier plant at thonnakkal, which has a capacity of
500000 MTs/ annum. It had increased the clay capacity of EICL to 1,75,000 MTPA.
The company has raised the grinding capacity of plant at Yamuna nagar to 16 TPD.
It had resulted in increasing the corn-wet capacity by 10% . the company had also
installed additional capacity in Pondicherry to the tone of 1500 MT per annum for
producing Carbojet, a new speciality start for the textile industry.

Forms of Clay

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Production process

Manufacturing of Hydrous and Calcined clay are as follows :

1) Mining

The raw material is extracted from the bottom portion of the earth using
excavator. The mined clay or the raw material loaded in tipper lorries and
transported to the plant, where they are graded based on color in a yard.

2) Matrix analysis

It mainly deals with analyzing and grading the clay matrix based on color.
Generally matrix is found in 3 color- white, grey and pink. White color indicates
pure clay. Grayish tint indicates the presence of graphite and a pink color
denotes iron (ferric) content. These processes are mainly done with the help of
process control lab which decides the blend of grades that go int the production
according to customer requirements.

3)Matrix blending

The different grades of clay matrix are mixed in appropriate proportions as per :

Types of clay produced Available forms Plant

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 Hydrous clay(with Powder,spraydried,powder 1&2
water content)
Calcined clay (without Spray Dried, powder 3
water content)

Process control lab to obtain raw materials of desired characteristics on

according to customer requirements.

The process control lab is responsible for deciding the quality of the matrix
coming from the mines. This process is mainly done with the help of quality
control department. It also decides the blend of grades that go in to he
requirements of the customers. This is based on the type of that product o be
produced on the particular day.

4) Blunger operations

In this process water is added to the clay matrix to form the slurry. The clay
matrix in bulk form is fed to the machine called Blunger with addition of water
to the form the required amount of slurry.

5) Classification

In this stage higher grid particles are separated from slurry. Thought this process,
25 to 35 % of stands get removed.

6) Hydro cyclone Process

A Hydro cyclone is a mechanical separator in which granular solids are removed

from a stream of water and classified by the centrifugal force. This is two stage
process. In the first stage the slurry after classification is passed on to a 14 Hydro
cyclone, where is primary vortex formation by which the residue moves
downward to the nozzle and the secondary vortex moves th product upwards and
it the secondary stage it pass to Hydro cyclone where the remaining sands get
removed. The first stage remove heavier and particles and the second stage
removes the small grit particles. After removing the grit particles and other

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impurities, then the refined product in the form of slurry is stored in storage
tanks.

7) Bleaching

It is the process of separating the impurities like the iron particles by subjecting
the refined product to chemical separation. It’s chemically treating the refined
impurities. Bleaching agent used is hydrouslphite bleaching of clay removes iron
impurities and also allows clay to be bleached to perfect whiteness. Sodium
Hydrosulphite transforms trivalent iron into bivalent which, on subsequent acid
treatment ( by adding sulphuric acid that reduces the Ph value to 2.5) dissolves
and removes iron from the clay. O neutralize the acidic content of slurry and to
prevent iron from revamping. Carbonate and soda ash is added to the slurry and
the bleached slurry is then collected in a holding tank. Having refined the clay, it
is moved on to the final process.

8) Drying

The most promising solution to an ecological problem is to change to a non-

waste production process. Thus, in the manufacture of kaolin by the dry method,
the most valuable part of the finished product is lost because of in – adequately
effective setting in the consumptions that generate pressures typically in the
region of 100 pounds per square inch (70000 kg per m2) In addition to the filter
plate filtration medium, the growing cake enhances removal of fine particles in
the slurry. The solution coming through the filter press water bibs, called the
filtrate, will be very pure.

The filtrate can be drained away for safe disposal, or it can be kept in a water
tank for recycled use. At the end of filtration, the solid filter cake can be
removed. The whole filtration process is often controlled by electronics to make
it automatic or semi- automatic.

The development of equipment to ensure the full setting of the finished

producting is one of the main requirements for developing a non-waste in the
production process for kaolin using the dry method.

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 Drying mainly refers to converting the slurry contains 65% water in to final
products in the form of solid( lumps& powder).

9) Screening

The bleached slurry (containing 12% salts) is subject to screening trough which
graphite and other foreign materials are screened off and then pumped and
passed through a filter cloth.

10) Filter pressing

Filter presses generally work in a ‘batch’ manner. They are loaded with slurry
before completing a filtering cycle and producing a batch of solid filtered
material, called the filter “ cake” . The solid is removed, the press re-loaded with
slurry and the filtering cycle repeated. A filter pres uses increased pressure to
maximize the rate of filtration and produce a final filter cake with a low water
content. This is more efficient than filtration using a low water content. This is
more efficient than filtration using a funnel and paper which utilizes the low
pressure caused by the weight of liquid above the filter paper.

A filter pres consists of a series of filter chambers containing square, rectangular

or round filter plates supported in a frame. Once the filter chambers are loaded
with slurry , the filter plates are forced together with hydraulic ram

The different operations at plant 1 are mentioned below:

Paddle Mixing Operation

The sliced clay cake are mixed with 12 % dry powder in a paddle mixer which
converts the moisture content to 22 % and put it into rotary drier.

Rotary drying operation

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 The drier runs on fuel, hot air is passed through it and to this 12% dry powder
is added. It turns to lump from containing around 12% moisture. The lumped
product is sent to the silo from where it is either sent to packaging section or it is
sent to packaging section or it is sent to attritor mill where the lumps are milled to
powder from with 2% moisture and then sent to silos for packing.

The different operations at Plant 2 are mentioned below :

Kneading operation:

At the plant 2 sliced clay cakes (containing 65% salts) are mixed with
chemicals likeaccumer or calgon to convert it in to slurry form. This process is
known as kneading.

Atomization

The slurry is then stored in storage viscosity tank is then passed through the
slurry which is kept in a closed chamber. The product that obtained in powder form
containes only about 2% moisture, which is then send to silos for packing.

Pckaging

The product stored in silos is send to either jumbo bagging 1 to 50 kg bagging

machine and dispatched.

Operations at plant 3 are mentioned below:

At plant 3 which is a calciner plant where the moisture content from clay is
removed by adding chemicals to get calcined clay. The powdered product from the
attributor in the first plant or the spray dried powder in the second plant is sent to the
calciner where the moisture is removed and then sent to silos for packing. The
calcite clay is of high value.

Quality control department

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 Quality control in Charge

Shifts Chemist(junior Supervisor Grade)

Technical Assistant Lab Assistant

Quality control refers to those activities Which assure that quality creation is
performed in such a manner that the resulting product will perform its intended
function. EICL being as ISO certified company, its quality standard has to be
maintained. This dept tries to improve the quality of the product according to the
specifications given by the customer. Quality control dept takes samples from the
plants to check the following properties.

Quality

Brightness

Viscosity

Moisture

Grit

Functions

 Checks the standard and quality of raw materials from mines checks the
quality of finished product also. Quality of product and temperature of
the plant will be checked in each hour of production.
 Great care is taken to maintain quality during packing and dispatching
and on its delivery.
 Assures proper processes in the production of raw materials.

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  Quality of finished product is measured by taking 50 g as sample from
every 20 bags.

Objectives

 Assurance of the quality of incoming raw materials.

 Assurance of quality at various stages of production process.
 Assurance of the quality of the end products and its packaging.

Quality control

Quality controls starts from mining process, the matrix is checked whether
it meets the stipulated quality. A sample from every load undergoes quarterisation
process. The matrix which does not meet the required standards is rejected. The
matrix which meets the required standards is stored in sock yards. From stock yards
it goes for production process. Quality is checked during the production process.
Samples are taken at one hour interval and the quality is checked int process control
lab. If any fault comes during the production process the quality control dept
suggests corrective measures. The end product also undergoes quality checks. After
inspection the product go to silos for packaging. EICL maintains quality till it
reaches the customer.

If the products have not reached the stipulated standards, the n

Re process the product

Find alternatives

De grade the product

Reject the product

Quality control management

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 It includes quality control and quality assurance. It take to considerations the
expectation and satisfaction of its custom’s customer. Quality control lap interacts
with customer to know their expectations.

Quality certification

The company has been certified to ISO 9002: 1994 since 1996 and has now been
upgraded to ISO 9001 : 2000

COMMERCIAL DEPARTMENT

General Manager-commercial

Manager - Commercial

Executive -Commercial Executive - Stores

Junior Supervisor - Stores

Senior Supervisor Commercial

Junior Accountant - Commercial Store boy

The commercial department in EICL is responsible for the procurement of

raw materials, spares and packing materials, vendor development and procurement

of imported materials. Their mission is to procure material of required quantity and

quality at the most competitive prices for uninterrupted production and maintance of

the plant with the least possible tie up in inventories and with constant endeavor to

make it economical. The dept consist of purchases and store sections. Senior

Manager commercial is responsible for giving the approval for purchase of material,

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assessing, rating and finalization of vendor, settling disputes pertaining to terms of

contract and purchase order. The Executive – commercial is responsible for

verification of indents, sending inquiring, obtaining quotations, preparation of

comparitive statements, renewal of licenses, clearing the materials, preparation of

transport documents and follow up with the vendor. The Executive –stores is

responsible for receipt of materials, handling non-conforming items; carry out the

wok for incoming materials, systematic inspection and storage of materials,

periodical stock verification of stores of material, preparation of record for sending

out and receipt of outward materials, and lay down procedures for calibration of

balance used for measurement related to store activities.

The supervisors in purchase section is responsible for verification of indents,

sending inquiries, obtaining quotations, preparation of comparative statements and

obtaining approval of purchase from senior manager commercial. The Assistant

prepare he purchase orders. Senior Assistant the executive in this job and store

attainders issue the stored items to the user dept as advised to them. At EICL there

are two vendors for transportation, one contractor for excavation and three vendors

for purchase of fuel. The purchase department mainly looks after purchasing raw

materials, machinery spares, fuels, electrical items and other items.

Purchase Department:

The purchase department is responsible for the purchases made during the day to

day functioning of the company. Their functions include collecting receipts of

indent, material procurement, vendor selection, evaluation and registration.

List of Vendors :

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 Packing Materials : Kamalavel corporation Thoothukudi, Klean Pack Bangalore,

Multi packaging Banglore.

Chemicals : Swastik Corporation Erode, Gulsham Chemicals Erode.

Trisodium Phosphate : Travancore Cochin chemicals

Accumer : Surya Corporation Pondicherry.

Sulphuric acid : Bhagya stores, Thiruvananthapuram.

Authorization of approval of purchase :

The following are the authority who is allowed to sanction for the value of

materials purchased from the vendors.

Up to Rs 50000 : senior Manager commercial

Rs 50000 – 100000 : Vice President

Above Rs 100000 : Executive director

RESEARCH AND DEVELOPMENT DEPARTMENT

Senior Manager – R & D

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 Asst manager - application

Trainees Research Chemist (Senior Supervisor )

Research Chemist
Worker/peons

Research Chemist (junior supervisor)

EICL has a well equipped R&D centre that is recognized by the department of

Science and Technology. It was started in 1992 with the view to provide technical

advice to the customers and to offer technical assistance including testing services to

other department of EICL. Its in – house and development unit is known for

stringent quality control and developing tailor made products for the customer’s

requirement. The department has close relations with the nations with the national

laboratories and the research wings of major customers. Hence it is able to draw

upon the expertise of these esteemed organizations in bringing out innovative

products and finding new applications for the existing products. The research and

development department supports other departments by providing them with steps in

cost reduction and for optimum utilization of resources.

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The company process to analyze complete mineralogical and chemical composition

by their competent team or R & D experts, enables them to not only recommending

right products to the customers but also to develop customized minerals if required.

Functions

 Develop new products.

 Provide support to other departments.

 Provide application support to customers.

 Internal testing for each industry.

 Process improvements.

 Interaction with research department of major customers to understand

their needs and meet quality requirements.

New product development :

 The R&D department has developed varieties of grades of clays of

which the important are the following.

 Surface tread clay

 Calcined clay

 Speciality clay

 Hydrous clay

Critical Activities :

 Support to production Department – Technical support for selecting

matrix blend (based on customer requirement ) every month.

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  Support to Marketing Department – Application support will be

provided with in 48 hours in handling major customers complaints.

 Support to customers – Visiting 10 major customers in a year to

identify their changing requirements and to provide technical

support and service.

Application support :

To be ahead of the changing requirements of its user industries, EICL has a

well equipped application laboratory in Trivandrum. This laboratory is under the

control of R & D department. The lab has paper, paint, rubber, cement and ceramic

industry specialists, support be the most modern equipments, who constantly thrive

for offering proactive solutions to the respective industries. The paint lab carries out

smoothness and viscosity. The chemical lab conducts chemical analysis of clay.

There is no also an instrumentation room which house world class equipments for

testing, some of which include serigraph, hi-shear viscometer, abrasion tester, tensile

tester, ultrasonic disposer, spectrophotometer, Brookfield viscometer and X-ray

diffract meter.

Future plan of action :

 Commercialization of Specialty Clays in new industries

 Development of delaminated clay.

 Optimization of super – gloss quality to replace imported clay in paper

coating.

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  Develop cheaper and suitable process chemicals for reducing the cost of

production

 Collaborative research works with major customers to develop cost effective

formulation in all areas of application.

The company’s commitment towards the research activities carried out at the

company’s R & D centers has resulted in new product development,

application support to the customer as well as process support to the

manufacturing units.

PERSONAL AND ADMINISTRATIVE DEPARTMENT

Senior Manager- H&R & Development

Accounts Manager-P&A Junior Executive Personal Secretary to

Junior Executive-HR
Executives

Security in Charge Senior Assistant Senior Supervisors-

R&A

Drivers/peons
Security on contract basis

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HR Philosophy

“A team is more valuable than an individual”

The main administrative functions include:

1) Attendance management
2) Wage and Salary administrative
3) PF administration
4) ESI scheme administration
5) Office management
6) Security management
7) Safety management

Welfare activities

1) Canteen
2) Recreation club
3) Co operative society
4) Medical Insurance

Trade unions

1) Thiruvananthapuram District clay welfare Union (CITU)

2) Thiruvananthapuram District employees Union (AICTU)

3) EICL Workers congress (INTUC- I)

4) EICL Factory Employees Union (UTUC)

5) Thiruvananthapuram District Clay General Employees Union (AITUC)

6) EIC MAZDOOR SANGH (BMS)

7) EICL Technical Employee’s council

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 MARKETING DEPARTMENT

General Manager- Marketing

Junior Executive Marketing Executive- Sales Manager- Marketing (Delhi)

Senior Asst- Marketing Junior Supervisor- Sales Junior Executive-Manager

Junior Assistant - Sales

Marketing is a distingushion and the unique function of business. The success or

failure of any organization profit making or non-profit making depends on

marketing. As the economy develops the importance of marketing increases.

Marketing is used to identify the customer, to keep the customer, and to satisfy the

customer. At EICL, the marketing dept acts as gride and lead the company’s other

departments in developing, producing fulfilling and servicing products and services

of their customers. Communication is vital and the marketing department typically

has lines set by the marketing department are in line with the vision and mission of

the company. The top management is also involved in and endorses co operation by

all departments in following and implementing the plan integrating a consistent

message into all communication channels. At EICL there is a system of preparing

the material complaint report. MCR is a report prepared by the marketing

department which consists of customer complaints about the product. This will be

48
circulated among all department to know that was the complaint about the product

was, after detecting mistake, the complaint will be rectified with immediate effect.

EICL goes in for industrial marketing, as its product (kaolin0 is used as raw material

by other industries such as paint, paper, rubber, and ceramics. The company also has

its own exports division in the marketing department. Over the last 10 years EICL

products to about 18 countries some of which include UAE, Philippines, Mauritius,

Oman, Yemen and South Africa. With hydrous and calcined clay of quality

comparable with the best grades available in the world, EICL products offer distinct

techno commercial advantage in Africa, as far middle-east markets due to its

geographical location.

Functions

 Identity prospective customers.

 Conduct market survey and market research.

 Source orders and execute them as per delivery schedules agreed upon

FINANCIAL AND ACCOUNT DEPARTMENT

Senior Manager – F&A

Accounts Officer Junior Executive - Systems Executive - Accounts

Account Asst Trainer

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The finance and accounts department is responsible for the financial functions and

activities of the company’s fiscal policy. The activities included budgeting

preparation, monitor ring the income and expenditure, MIS reporting audits, tax

administration updating the shareholders on the financial health of the company.

Maintaining accounting records preparation of financial statements and legal

administration.

The finance department is a supporting department. Senior department is the head of

the department and authorized signature of the unit. He is responsible for the

consolidation functions, Executive and senior manager are responsible for balance

sheet preparation. The executive accounts also participate in audits prepare

statements is relating MIS reporting, taxation and accounting. Senior supervisor are

responsible for accounting and returns preparation. The cashier receives and

disburses funds, transfer funds and prepares cash receipts.

Activities of department

The main activities of the department includes

 Budgeting

 Financial Accounting

 Accounting /Management Information System cost operation

MAINTANANCE DEPA RTMENT

 Maintenance department is a service department. The maintenance

department is responsible for the maintenance and modification of plant and

machinery. The main duty of the department is to ensure that all the all the

50
 machines are available in proper working condition throughout the year there

by ensuring high quality production. The department has to align the

machines in proper way and has to inspect them daily before the work starts

and even during the work. Maintenance department also takes care of

maintenance of automotives and refining process equipments. One of the

most needed inventories in maintenance is bearing.

OBJECTIVES

 To reduce the down time in the plant.

 To upgrade at least one machinery per year.

FUNCTIONS

1) preventive maintenance

2) Scheduled maintenance

3) Shutdown maintenance

4) Breakdown maintenance

Maintenance department does maintenance for lot of equipments. The main

equipment so that come under the maintenance perspective are:

 Centrifugal pumps for transferring the clay slurry.

 Dryers for drying.

 Screen to remove oversized particles.

 Filter presses for the removal of water.

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 PROJECT DEPARTMENT

Senior Manager - project

Asst manager-Civil Asst Manager - project

Civil Engineer (Content) Project Engineer on content

Civil Supervisor on contract Electrical Supervisor on contract

The project department in EICL was started in the year 2001. The department is

headed by a chief project manager who directly reports to the COO. The rest the

staff in the department has been on deputation from other departments. They have

successfully accomplished the following tasks.

 Commissioning of water treatment plant

 Duplication of the rotary drier.
 Commissioning of calcined clay plant at Thonnakkal.
 Implementation of a sand treatment plant.

Functions

 Assuring the quality of the equipments.

 Planning and budgeting of the project contract finalization.
 Overall coordination and monitoring of project under taken by the company.
 Getting sanctions from the Government.

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