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An organization is a social arrangement which purpose collective goals, controls its own performance, and has a boundary separating it from its environment. Organizational structure is a mainly hierarchical concept of subordination of entities that collaborate and contribute common aim. . Organizations are a variant of clustered entities. An organization can be structured in many different ways and styles, depending on their objectives and ambience. The structure of an organization will determine the modes in which it operates and performs. Organizations are a variant of clustered entities. An organization can be structured in many different ways and styles, depending on their objectives and ambience. The structure of an organization will determine the modes in which it operates and performs.

Philips carbon black has come a long way since its inception in 1960. PCBL started production from December 1962 by oil furnace the most widely accepted manufacturing process of carbon black patented by its then collaborator and world carbon black leader Philips Petroleum Company USA The collaboration ended in 1978. However PCBL continued its progress by virtue of the ingenuity of its technologists, engineers and sustained R&D activities. In 1988 PCBL entered into a technical agreement with Colombian Chemicals Company, USA, and acquired access to modern state of the art carbon black technology. This resulted in company gaining flexibility, product range production capacity and energy conservation.

Carbon Black along with natural rubber accounts for more than 80% of the cost of tyre. It imparts anti abrasion quality and enhances the tensile strength of rubber. Carbon black is also used in industries such as automotive parts, construction and consumer products. It has applications in printing inks, coatings, electrical cables, plastic films, pipes. It is used to manufacture dry cell batteries. Coal tar and petroleum cokes are the principle raw materials used in the carbon products industry. These materials are by

products of refining and other coal and oil processing operations. Phillips Carbon Black Limited, part of RPG group, pioneered the carbon black industry in India. It is now the leading producer of carbon black in the country and 9th largest carbon black company in the world. The company is not only the largest exporter of carbon black in India but also one of the largest in Asia in its field. Currently export sales stands around 20% of the total supplies to international tyre companies such as Bridgestone, firestone, Dunlop and Goodyear.

PCBL is setting 90,000 tons per annum (tpa) capacity plant along with a 16 mw power plant at Mundra at an investment of Rs.220 core. Capacity of 50000 tones along with a 14 mw power plant will be added at Kochi at an investment of Rs.140 corer. These investment requirements would be met through debt and internal accruals.

PCBL is also setting up a 55,000 tpa capacity carbon black plant along with a 16 mw power plant in Vietnam at an investment of US $ 46 million. Rising crude oil prices is a major concern for the company. In the past the company was not able to pass on the rise in the raw material costs to its customers. But now with the escalation clause built into the contract, the company has passed on the risk to some extent to the buyers.

WHAT IS A CARBON PRODUCT? Essentially any organic material can be thermally transformed to carbon. The carbonization process uses heat to convert organic precursors into a carbon polymer. Some selected precursors can then be transformed into a three-dimensional graphite structure or near graphite structure. Differences in the properties of final carbon products depend on the raw materials used on the extended of completion of overall chemical and physical ordering processes and upon whether the thermal transformation takes place from the vapour, liquid or solid phase. Carbon products can be grouped according to the extent of material processing raw material, carbon precursors and finished carbon

products. Coal tars and petroleum cokes are the principal raw material used in the carbon products industry. These materials are bi-products of refining and other coal and oil processing operations. In the United States, approximately. Million metric tons of coal tar and 24 million metric tons of petroleum cokes are produced each year.

Pitches and cokes, which are derived from coal and petroleum tars or heavy aromatic liquids, are the two main carbon precursors materials from the production of bulk carbon and graphite products and for the manufacture of carbon blacks. Pitches have a glass like character and cokes are carbon industry vision infusible solids. Bulk carbon and graphite products such as electrodes are produced by first blending calcined as a filler and liquid pitch as a binder. This green material is then thermally processed through a series of progressively higher temperatures to achieve the final desired properties. Petroleum coke is the largest single precursor material in terms of quantity for manufactured carbon and graphite products. Approximately 10 million tons were consumed worldwide in 2010. Other precursors include natural graphite, hydrocarbon gases, carbon blacks, anthracite and synthetic resins. Carbon blacks are nano cale carbon particulates produced by pyroloysis of feed stock from the vapor phase with homogeneous nucleation of solid carbon.


The following are the specific objectives of my organization study. a. To study about Phillips Carbon Black Limited, Kochi and understand the day to day activities of an organization. b. To observe how management theories are applied and practiced in real business environment. c. To learn the functions of all departments. d. To understand the organization and department structure. e. To understand role and responsibilities of key persons in the organization. f. To have a general idea on the basic business operations of an organization. g. To experience the organizational processes at various levels.


The organization study is conducted at Phillips carbon black, cochin, for a period of one month from 2nd may 2011 to 30th may 2011. The following departments are studied in detail: - Finance Department, HR Department, Production Department, Purchase and storage Department. The study is largely based on secondary sources. The main objectives are to learn about the functioning of the organization, its departments and staff members. The study is undertaken a part of curriculum to fulfill the the requirements for the award of MBA, MG university.


Methodology is a procedure or technique adopted in a research study or investigation. Many methods and procedures have been developed and employed to meet the needs of these searches in gathering varied facts essential for my study thus forming conclusions from different sources. In every price of research different methods are used in different stages of its development. The selection of method for research work depends upon the nature of the problem.

SOURCES OF DATA For the purpose of analyzing the overall performance of Philips carbon black Ltd the investigator used primary data and secondary data.

PRIMARY DATA Primary data refers to those data, which do not exist already in the records and publications. For the purpose of collecting primary data the investigator conducted an interview with every departmental employees and department heads of Philips Carbon Black Ltd. Addition information were gathered through observing the activities of the departments and the employees.

SECONDARY DATA Secondary data refers to those data, which exist already in the records and publications and website. y y y Company journals Company website Annual report ,etc

a) Time allotted for the study is limited. b) The investigator could not gather all the details regarding the production process an most of the process are technical in nature. c) The study is largely based on secondary data. d) Did not get enough time to communicate with all the employees in the organization. e) As the primary sources are based on interaction with the employs chance of bias cannot be fully estimated.



Carbon Black is used mainly as a reinforcing material in the rubber industry. Other user areas include inks, paints, plastics and paper. The rubber industry uses 95% carbon black production while the rest is consumed by plastics, paints and dry cells. Close to 50%of global market is currently controlled by the top three companies Cabot Corporation, Degussa and Columbian chemicals. The units manufacturing rubber grade oil furnace carbon black in India include:  Phillips Carbon Black Ltd. (Durgapur, Baroda, Cochin)  United Carbon Ltd, thane  Oriental Carbon Ltd, Ghaziabad  Consolidate Petrotech Industries Ltd, Baroda  Ralson Carbon Ltd ,Ludhiana  Hi-tech Carbon Ltd,

World carbon black demand is forced to rise 4.2 percent per year through 2012 to eleven million metric tons, bolstered by a healthy global rubber market over the same period. The vast majority of carbon black finds use as reinforcement in vulcanized rubber goods, including around two-thirds for tires alone. Carbon black demand from the tire sector is projected to increase 4.2 percent per year through 2012 to 7.1 million metric tons. The smaller non tire rubber carbon black market will expand 4.0 percent per year through 2012 to 2.8 million metric tons. The Asia /pacific region, excluding Japan, will post the strongest gains in carbon black demand through 2012. The large market of China and India will post particularly impressive gains due to a continuing rapid expansion in their respective motor vehicle and tire industries. North America and Western Europe, which produced close to half of the world carbon black in 1996 will account for just 28 percent in 2012. Conversely, the Asia/specific region which produced 36 percent of the world carbon black in 1996 will provide 51 percent in 2012. The overall global carbon

black market is expected to increase by 4 percent per year to a level of 9.6 million metric tons through 2009, according to a study conducted by Clevelandbased the Fredonia Group, Inc.

Industry application
Aluminum production In aluminum industry the major application of carbon black includes in the production of anodes, cathodes and sidewall in the Hall Heroult primary aluminum cell. Advantages of using the carbon black in the aluminum industry include: resistance to corrosion, resistance to thermal shock, high thermal conductivity, low porosity, high operating strength, electrical conductivity, dimensional stability. Steel production Carbon black used in steel industry includes in the production of electronics for producing molten steel, iron and other alloys. It also used in the production of carbon black for hearths and furnace walls and crucibles. Advantages of using carbon black in steel industry include carbon black hearts and furnace walls, crucibles, pressure casting electrical conductivity, resistance to thermal shock, high thermal conductivity, and dimensional stability. Glass making Carbon black is used in glass industry in the production of furnaces, crucible and handling mechanisms. Advantages of using carbon black in glass industry include: resistance to thermal shock, dimensional stability.

Environmental Application

Environmental application of carbon black includes in the carbon filters for water air purification filtration for industrial, municipal and automotive applications. Advantages of using carbon black in this area include mesosphere micro beads, veratiland controllable porosity, tailored chemically reactive surface, provides large surface area. Chemical production Application of carbon black in chemical industry includes in the production of reaction vessels, heat exchangers, pumps, pipe fittings and valves, porous graphite filters. Advantages of using carbon black in chemicals production includes resistance to corrosion, high thermal conductivity, tailored chemically reactive surface, low permeability ,electrical conductivity. Aerospace Application In the field of aerospace the carbon black is used in the production of nose cone, airframe structure, breaks, rocket nozzles etc. Advantages of using the carbon black in aerospace application include; high strength to weight ratio, resistance to thermal shock etc. Metal fabrication In the area of metal fabrication, carbon black is used in the production of high temperature rollers, dies, tooling, and electrodes for electrical application, discharge machine. .advantages of using carbon black in the area includes resistance to thermal shock, resistance to correction, high thermal conductive, mechanical strength. Nuclear power In the field of nuclear energy carbon black is used in the production of various equipments such as nuclear moderators and reflectors, thermal columns, various constriction materials, graphite coated fuel pellets etc. advantages of using carbon black in nuclear power include; low neutron capture cross section, high strength etc.


Electronics In the field of electronic carbon black is used in the production of various equipments such as capacitors, batteries, heat sinks, electromagnetic shielding , heating elements for semiconductor manufacturing etc. Advantages of using carbon black in electronics field include electric conductivity, dimensional stability, resistance to thermal shock, high thermal conductivity, light weight etc. Sliding contact mechanical application Carbon black is an essential ingredient in the manufacturing of sliding contact mechanical equipments such as such as bearing, seals, vanes, bushes, wearing and brushes etc. Advantages of using carbon black in the sliding contact equipments Include: lubricity, strength dimensional stability etc. Recreational products In the field recreational also carbon black finds its application in the production of tennis rackets, skis, bicycles, sailboats etc. advantages of using carbon black include: high strength to weight ratio, fabrication versatility, high stiffness to weight ratio etc. Infrastructure The applicable properties of carbon black find its advantages in the area of insracture and the qualities include: seismic retrofit of beams and columns, extinction of bridges, high strength to weight ratio, resistance to fatigue and vibration etc. Transportation In the field of transportation the carbon black finds its place in the production of automotive structures, rotating components etc. advantages of using carbon black in the transportation field include: fabrication flexibility, high stiffness etc. Rubber products


Carbon black finds its major use in the field of rubber products. It is used the manufacturing of tires and rubber. Advantages of using rubber products include; structure particulates of controlled morphology, readily wet by rubbers, thermal stability, mechanical robustness etc.


2.2 Competitors details of PCBL

Sales Company (Rs. Million)

Current Change Price (%)


Market 52-Week

Ratio Cap.(Rs.Million) High/Low

Phillips Carbon 12325.74






Orient Car







Cabot India Ltd.







Goa Carbon







Murablack India














Data source: annual report 2010



As one of the most important industrial chemicals in the world carbon black represents a $ 8.8 billion global market. Close to 50% of the global market is currently controlled by the 3 companies; a) b) c) Cobot Corporation Degussa Columbian Chemicals World carbon black was forecasted to rise 4.2% per year through 2011 to eleven million metric tons with the major applications in rubber, plastics, inks etc. The Asia-pacific region account for 50% of global demand for carbon black and 47% is almost divided between America and Europe, whereas demand from Africa and middle east is less than 3%.

China and India registered double digit demand growth strong rise in the carbon black industry. The Asia-Pacific region, excluding Japan posted the strongest gain in carbon black demand through 2011.The vast majority of carbon black finds use as reinforcement in vulcanized


rubber woods including around two - thirds for tyres alone. Due to the investment in road infrastructure and increasing vehicle population, the rest of the world clocked 3.5% growth. Phillips Carbon Black does, however the company has invested in a means of converting this waste into energy and financial savings. The India based company has announced the commissioning of its 30 MW co-generation power plant Durgapur, in the state of West Bengal. The Rs 1 billion (11.6 million) facility, which utilizing the waste gas produced during the process to generate power, was commissioned on September 29.

An RPG Enterprises group (who also owns tyre manufacturer Ceat) company, Phillips Carbon Black is Indias largest, and the worlds seventh largest, manufacturer of carbon black, and the company sells carbon black to almost every tyre company in India. Its three plants currently account for 70 per cent of Indias installed capacity. The company is also Asia`s largest exporter of the commodity.

Other current company projects include the construction of a new 80,000 tone carbon black production facility in Mundari, India, commissioned on March 2010 and a 100,000 tone facility in Vietnam.



In India, the recent slowdown in the automobile sector and its cascading effect on tyre affected the demand for carbon black. Since the demand is not very comfortable the cost is also not encouraging. The recent depreciation in the value of the rupee versus the dollar also compounded the problems of the domestic users. PCBL has been continuously upgrading the technology. The processes in Durgapur & Cochin Units are controlled by most advanced Distributed Control Systems symbolizing the essence of state-of-the-art technology. The company uses latest equipments from worlds best manufacturers like M/S. Chronos Richardsons (UK), Rekuperator AG (Germany), and Delmonico (Italy). PCBL has three manufacturing units located in Durgapur, Cochin (Southern India) and Baroda (Western India). The production capacity of the three units put together is almost 47% of the total installed carbon black capacity in India; that of Durgapur unit alone accounts for 24%.

PCBL Durgapur Unit has now a production capacity of 1, 35,000 MT per year with a proven capability to produce 24 grades of carbon black through successive stages of modernization and expansion. It is ISO-9001 certified, and is the only Carbon Black manufacturer in Asia to have achieved this distinction. The Durgapur unit has also received the


QS-9000 in December 2000, and has initiated the Environmental Management System (EMS) activities for receiving ISO 14001 Certification. Cochin plant obtained ISO 9002: 1994 Certificate in 1998, which was followed soon after by that of the Baroda plant. Cochin Plant has also bagged the Environment Management System (EMS) standard accreditation under the 14001: 1996. PCBL acquired M/s Gujarat Carbon & Industries Limited (GCIL) Baroda in November 1996 and M/s Carbon and Chemicals India Limited (CACIL) was merged with PCBL with effect from 1st April 1997 with the twin objectives of increasing volumes and proximity to certain key customers. A capacity expansion was undertaken in 2004 to take the plant capacity at Baroda to 90000 MT/Annum. The rubber industry uses a total of 95% of carbon black production while the rest is consumed by plastics, paints and dry cells. In domestic market, the company is regular supplier to all the major tyre manufacturers and has an overall domestic share of around 40%. PCBL continues to be the the undisputed leader in the field of carbon black in India.

The major players in the Indian scenario are:a) Phillips Carbon Black Ltd (Durgapur, Baroda, Cochin). b) United Carbon Ltd, Thane. c) Oriental Carbon Ltd, Ghaziabad. d) Consolidated Petrotech Industries Ltd, Baroda. e) Ralson Carbon Ltd, Ludhiana. Like other countries, in India, carbon black is used in:a) Aluminum production. b) Steel production. c) Glass making


d) Environmental application. e) Chemical production. f) Aerospace application. g) Metal fabrication, h) Nuclear power, i) Electronics. j) Recreational products, k) Infra structure. l) Rubber products.


Philips Carbon Black Ltd, part of the RPG Group, has planned to expand its carbon black manufacturing unit at Kochi in Kerala. The Rs 160-crore project involves capacity expansion from the current 125 tons per day to 280 tons per day by September next year. The annual capacity of the plant will increase from 40,000 tons to 90,000 tones. The incremental capacity will be used largely to produce soft carbon black that has more demand. To meet the additional power requirement, the existing captive power plant capacity will be stepped up from 2.5 mw to 14 mw. Surplus power, after meeting the requirements of the new capacity, will be exported to the grid. A senior official of PCBL in Kochi said that land was already in possession and preliminary work on the project had begun. He also noted that the company's overall carbon black making capacity would increase to 3.1 lakh tpa once the Kochi expansion went on stream.


Major players in the Kerala scenario: a. Phillips Carbon Black Ltd b. United carbon ltd, thane c. Oriental carbon ltd, Ghaziabad

The key customers are; a) MRF. b) Apollo Tyres. c) Ceat Tyres d) JK Tyres..Etc.





Philips Carbon Black (PCBL), a member of RP Goenka Group was incorporated on March 30, 1960 and is a leading manufacturer of various grades of carbon black in India. Columbian Chemical Corporation, US, a leading international producer of rubber blacks is the Technical Collaborator of the company. Carbon Black which is an main raw material in the production of automotive trye is produced using carbon black feedstock (CBFS) and tar oil. The company has its manufacturing facility in Durgapur, West Bengal, at a installed capacity of 1, 75,000 tpa. The company has a well-organized distribution network and its consignment agents cover the entire network of tyre manufacturing units, tyre re-treading units and other consumers all over the country. The company has four subsidiaries - Carnival Investments, Transmission Holdings, South Asia Electricity Holdings, and PCBL Industrial Finance. PCBL is the first manufacturer of carbon black in India to receive the coveted ISO-9001 certificate covering the manufacturing, marketing and designing functions. PCBL came out with an issue of equity shares at a premium of Rs. 30 aggregating Rs. 33.53 cr in Feb. '94. In 1996-97, Carbon and Chemicals India Ltd was amalgamated with the company. Due to an accidental release of carbon black smoke, the company was forced by the KPCB to close its Cochin factory. The company's production as well as the exports was also affected due to this closure of unit. After a disruption of 3 months the production was restored. To meet its annual demand the company has shifted its 10000 MT ideal capacity from Cochin to Durgapur. Simultaneously de-bottlenecking is also in progress at Durgapur. This should increase annual capacity by 15000 MT per annum at Durgapur. Philips carbon black, part of the RPG group pioneered the carbon black industry in India. It is now the leading carbon producer in the country. PCBL enjoys 41% of market share in India. It is also one of the leading carbon exporters in India. It is the first carbon black company in the world to be awarded carbon credit under Kyoto Protocol of UNFCCC. PCBL was formed in the year 1960 by Phillips Petroleum Company, a major oil company and a leading manufacturer of carbon black in USA. Phillips carbon black has come a long way since


its inception in 1960. PCBL started production from 1962 in collaboration with the world carbon black leader, Phillips Petroleum Company, USA. The collaboration ended in 1978. COCHIN UNIT

Company Address:

Phillips Carbon Black Ltd. Karimugal Brahmapuram P.O Cochin-682303


Phillips Carbon Black Limited

Registered Office:

3 l, N.S.Road, Kolkata-700001

Corporate Office:

3 l, N.S.RoacLKolkata-700001

Date of incorporation:

March 31 1960




Public Limited Company

Production capacity:

40000 MT p. a

Turn Over:

140 Cores p. a

Total number of Employees:


Management Staff:



Non-Management staff:


Hours of work:

8 hrs

The company is considering various proposals in the field of electronics. The subsidiaries of the company are:a) The On share Investments Ltd. b) Carnival Investments Ltd. c) Philcarb Investments and Industries Ltd. d) Philcarb Industrial Finance Ltd. e) PCBL Industrial Finance Ltd. MISSION Develop, manufacture and market carbon black competitively and be the most preferred supplier to the customers and create wealth for all the stakeholders on a sustained basis. VISION a) To be a global carbon black producer. b) Manufacturing with low cost. c) To be environment friendly operation by being; 1) Reliable, competitive and responsive supplier. 2) Transparent and sustainable wealth creator to stakeholders. 3) Providing fair employer an exciting work place.


COMMUNITY INITIATVES a) b) c) d) e) Pipeline for drinking water for school. Free distribution of books. Merit award. Secured landfills for hazardous waste disposal. Rain water harvesting. '

QUALITY POLICY It includes; a) Consistently meet the requirements of product specification. b) Upgrading technology and business process to meet the changing needs of the customers. c) To be an environment friendly organization.

PCBL honors and recognizes performance through; a) b) c) An aggressive performance management system. Awards for outstanding performance. Organization and management reviews process at Management Committee level that reviews the status and progress. .


FACILITIES a) b) c) Officers colony. Playground. Swimming pool.

3.2 History and philosophy

Phillips Carbon Black, established in 1960 and a part of the RPG Group pioneered the carbon black industry in India. It is now the leading producer of carbon black in the country. PCBL started production from December 1962 by the oil furnace technology; the most widely accepted manufacturing process of carbon black patented by its then collaborator and world carbon black leader, Phillips Petroleum Company, USA. The collaboration ended in 1978. However, PCBL continued its progress by virtue of the ingenuity of its technologists, engineers and sustained R&D activities. In 1988 PCBL entered into a technical agreement with Columbian Chemicals Company, USA, and acquired access to the modern state-of-the-art Carbon Black technology. This resulted in the company gaining flexibility, product range, production capacity and energy conservation. RPG Group recognizing the major turnaround achieved during the last two years and the growth path PCBL has embarked upon to capture the opportunities in Carbon Black business has made Carbon Black an independent Business Sector with effect from August 1, 2008.The companys present installed capacity is 270,000 MTPA. The company is not only the largest exporter of Carbon Black from India but is also one of the largest in Asia in its field. The company has taken advantage of the newly introduced Electricity Act of 2003 to setup a 12 MW co-generation power plant at its Baroda plant using the offgas. After meeting the internal demand for production of carbon black, the surplus power of around 7 MW 7.5 MW is being sold


to the GEB Grid from end March, 05. State of the art Enterprise Resource Planning system SAP was implemented in conjunction with the internationally renowned consultants, M/S Accenture as the implementing partner. SAP is functioning satisfactorily. PCBL acquired Gujarat Carbon & Industries Limited (GCIL) Baroda in November 1996 and Carbon and Chemicals India Limited (CACIL) was merged with PCBL with effect from 1st April 1997 with the twin objectives of increasing volumes and proximity to certain key customers. A capacity expansion was undertaken in 2004 to take the plant capacity at Baroda to 90000 MT/Annum. The rubber industry uses a total of 95% of carbon black production while the rest is consumed by plastics, paints and dry cells. In domestic market, the company is regular supplier to all the major tyre manufacturers and has an overall domestic share of around 40%. PCBL continues to be the undisputed leader in the field of carbon black in India. Encouraged by the success of the Baroda co-generation power plant, the company is setting up a 30 MW co-generation power plant at its Durgapur plant utilizing the off gas for generation of power. The internal consumption would be around 6 MW and the surplus power would be sold to interested consumers. PCBL has three manufacturing units located in Durgapur, Cochin (Southern India) and Baroda (Western India). The production capacity of the three units put together is almost 47% of the total installed carbon black capacity in India; that of Durgapur unit alone accounts for 24%. Products manufactured by the company include: The company designs, manufacturers and markets carbon black. The major market for Carbon Black is Tyre Industry. Carbon Black is also required by Non-Tyre rubber based application industry as well as the plastic industry. PCBL has capability & flexibility to produce any ASTM grade in addition to the grades mentioned above. Besides ASTM grades, PCBL also manufactures customized product specific to a customer. The company is the largest manufacturer and supplier of carbon black in the country catering to the needs of elastomer, plastic, paints and ink manufacturing industries.It also manufacture Special Black


for non-rubber applications Achievements/ recognition : The company has bagged prestigious awards like coveted ICMA Award for novel energy conservation in chemical plants of the country. The company has bagged CHEMTECH foundation Award for wealth from waste. In 1997, it has also won the best company of the year award for all round performance within the RPG companies. Award for second best safety and housekeeping practices was awarded (in 1995 for PCBL Durgapur). It is ISO-9001 certified, and is the only Carbon Black manufacturer in Asia to have achieved this distinction. The Durgapur unit has also received the QS-9000 in December 2000, and has initiated the Environmental Management System (EMS) activities for receiving ISO 14001 Certification. Cochin plant obtained ISO 9002: 1994 Certificate in 1998, which was followed soon after by that of the Baroda plant. Cochin Plant has also bagged the Environment Management System (EMS) standard accreditation under the 14001:



PCBL manufactures around 20 different grade of carbon black and is the 8th largest manufacturer in the world. The following tables give a snap short of the various grades manufactured by PCBL, major applications and properties of carbon black.

Sl .no. 1

Grade N-110

Properties Highest tensible strength, Abrasion and tear strength,

Major applications OTR, heavy duty rollers, Tank treads, Mechanical goods.


Excellent tensible strength, Abrasion and tear strength,

Aero tyre and special application Tyre tread, retreading, mechanical goods, heavy duty belts.


Good tensible strength, Abrasion and tear strength,


Higher modulus

Tyre tread, retreading, mechanical goods, heavy duty belts, suitable for Higher friction


Exceptionally smooth extrusion

Premium quality truck tread, Belting and other extruded products.


Good tensible strength and abrasion resistance with very high modulus.

Racing and radial tyre tread



Good tensible strength and abrasion resistance.

Industrial rubber goods, OTR, heavy duty belts. OTR, tyre, v belt, skim and mechanical goods.


Better resistance to chipping and cutting, gives very good tensile strength.


Widely used because of its balanced properties, imparts goods modulus, tensile strength, abrasion resistance.

Tyre trade, side wall, Retreading, conveyer belts etc



High modulus tensible strength and abrasion resistance.

Passenger tread tyre , inner butyl tubes, conveyer belts cover.



High structure provides improved processing, ease of dispersion, high modulus.

Tyre treads heavy duty belts, wire and cable jacketing. Tyre treads, retreading etc



Good modulus, tensible strength and abrasion resistance with lower heat buildup.



Balance of fundamental properties between N-220 and N339, its road ware properties are similar to N-220.

Tyre treads, conveyer belt mining rubber goods.



Excellent extrusion properties, high green strength, medium abrasion resistance.

Tyre innerliner,,butyl tubes ,hoses, cables, window channel seals, mechanical goods



Easy mixing, goods extrusion properties higher modulus.

Carcass stock, side wall, tube molded items etc.




Cost effective, high loading in rubber, easy mixing.

Inner tubes, molded items etc. Beads , insulation ,apex molded goods etc.



Very high loading for better economy, good processing, low hysteresis to rubber.



Low compounding cost with higher loading, higher structure gives better processing.

Carcass stock, side wall, tube molded items etc.



Easy Mixing higher modulus and law hysteresis.

Butyl inner tubes, high speed belting, carcass stock etc.


3.4 Financial Performance of the Company

Parameters Current ratio Quick ratio Inventory turnover ratio Debtors turnover ratio Working capital turnover ratio Gross profit margin% Return on long term funds Fixed assets ratio Solvency ratio Propreitory ratio Reported return on net worth Dividend payout ratio(ne tprofit) Dividend payout ratio(cash ratio) Debt/equity

2009 1.45 1.09 10.14 2.6 4.18 2.48 8.14 1.01 0.69 0.11 -16.22 -

2010 1.56 1.14 10.76 3.93 6.05 7.77 25.85 0.92 0.599 0.19 14.67 25.11





PCBL is a listed company in both the Indian bourses-BSE and NSE. The market capitalization of PCBL as on 31-march-2010 is Rs 348 crores in which 50% comes from the promoters and 11% from institutional holding. The revenue of PCBL during financial year 2009-2010 was Rs, 1113 crores. The EBITDA was Rs 112 crores and the net profit was Rs 24 crores. The dividend declaration as of last year was 20% of the profit. Annul Tourneur crossed Rs 1200 crore during 2009-2010.sales value increased over 36%.sales volume witnessed a robust growth of 11%. Power generation rose by 11.35% during 2009-2010. Production increased 11%. The year 2009 visualized feedback price increased. In 2010 forward trading was done, efficiency increased, challenges increased and the company focused on cost. Improved operational efficiencies, better working capital management and lower finance cost helped mitigate the steep increase in raw material cost during FY20011. Accounting to management, the company saved Rs150cr in FY2010 on account of operational efficiencies.



Fig. no.1

Managing Director

General Manager Cochin

Head Producti on

Head Logistic

Head Purchase & Storage

Head Head engg.

Head HR

Head finance

Head Warehou se

Head R&D

Officers Warehou se Asst. mgr. Head Mechani cs Head Electrica l


Head Excise and oil

Section head

Head Instrume ntation

Head Oil & exchange





4.1.1 Structure of the department








4.1.2 Functions of Finance Department

1. To prepare Profit & Loss account and Profit & Loss Appropriation account 2. To prepare Cash Flow and Fund Flow Statements 3. To prepare quarterly financial reports 4. Supervise internal audit costing, budgeting and other internal control System 5. Establishing internal control in operational activities and financial transactions 6. To analyze and evaluate various trends such as net worth ratio, debt equity ratio and current ratio 7. To estimate the value of fixed assets, current assets and liabilities 8. To prepare final accounts and this should be submitted to top management for approval The objective of financial statement is ; 1) To estimate the earning capacity of the firm. 2) To determine the financial position and financial performance of the firm. 3) To determine the debt capacity of the firm. 4) To decide about the future aspects of the firm. 9. Working capital management:- The management of working capital involves; 2. Cash balances. 3. Management of accounts receivable. 4. Management of inventory. 10. Credit management

11. Banking functions :- PCBL banks with;


1) State Bank of India., State Bank of Travancore., ICICI Bank, Bank of Baroda.

4.1.3 Objectives of finance department

The financial management is generally concerned with procurement, allocation and control of financial resources of a concern. The objectives can be1. To ensure regular and adequate supply of funds to the concern. 2. To ensure adequate returns to the shareholders which will depend upon the earning capacity, market price of the share, expectations of the shareholders? 3. To ensure optimum funds utilization. Once the funds are procured, they should be utilized in maximum possible way at least cost. 4. To ensure safety on investment, i.e, funds should be invested in safe ventures so that adequate rate of return can be achieved. 5. Maximization of profit of the firm 6. Wage disbursement. 7. Budget preparation (weekly and annual). To plan a sound capital structure there should be sound and fair composition of capital so that a balance is maintained between debt and equity capital.


4.1.4 Financial summary, 2005-2010. (Rupees in lakhs)

Year ended Revenue Carbon black Power Other income Total revenue PDBIT 31.03.10 _ 1178.05 54.52 2.81 1235.38 190.67 31.03.09 _ 1060.51 15.51 14.44 1090.46 50.58

Less; interest(net) PDBT Less; depreciation PBT Provision for taxation PAT Balance brought forward Profit available for appropriation Proposed dividends Proposed golden jubilee Year dividend Tax on aforesaid dividends Transfer to general reserve Balanced carried forward to balance sheet

28.94 163.73 31.15 130.58 7.89 122.69 39.49 162.18 11.30 2.83

27.48 77.66 19.64 97.30 32.46 64.84 104.33 39.49

_ _

2.34 12.30 133.41

_ _ 39.49


4.1.5 Financial high lights of the company

2009-10 Sales Other income Expenses Profit before tax Taxation Profit after tax Dividend Retained profit Capital employed Application of funds Fixed assets Investment 3777.96 3776.10 2805.52 2805.52 2906.53 68546.77 61074.51 37541.49 28138.09 28219.99 134437.91 281.14 121660.66 13058.39 788.90 12269.49 1647.30 10622.19 88946.72 2008-09 120033.02 1444.17 131207.24 9730.05 3245.91 6484.14 _ 6484.14 64545.34 2007-08 106802.87 533.78 96058.21 11278.44 2347.59 8930.85 1181.80 7749.05 56851.23 2006-07 106566.95 346.68 102458.99 4454.64 2101.44 2353.20 590.90 1762.30 45909.76 2005-06 77341.42 123.41 79334.44 1869.61 362.37 1507.24 _ 1507.24 47960.23

Net current assets







4.1.6 Responsibilities of key personnel

Responsibilities of Finance Manager
The responsibilities of the finance manager are as follows. Utilization and control of funds Planning the quantum and patter of fund requirement Procuring the required amount of funds and allocating the funds Verification of accounts Preparation of budget Financial planning

Responsibilities of Accountant
The responsibilities of the Accountant are as follows. Daily data entry Maintain the stock register Maintain the ledger, voucher etc.

Responsibilities of Cashier
Maintain minimum level of cash flow to meet day to day expenses Record daily transaction of money Maintain cash book


4.2 PURCHASE AND STORES DEPARTEMENT 4.2.1 Structure of the department

Material manager

Dy. manager purchase

Dy. Manager Stories

Senior officer

Store keeper

Purchase Assistant Stores Assistant


Purchase Department is the key department in the company. Quality Raw materials leads to quality products. The Purchase Department ensures the purchase of quality raw materials for production at reasonable prices. About 90% of total cost is incurred for procuring raw materials. All other Departments act as supporting departments. This department takes account of how much to be purchased and the stock level of production. Purchase of various raw materials takes place through Purchase Department.

4.2.2 Functions of purchase department

The functions of Purchase Department include:

 Approval of specification list of the materials required for a particular project  Receipt of materials > Identification and development of reliable  vendor for supply of equipment and materials  Material requirement planning  The performance evaluation of vendors  The vendor performance is evaluated based on:  Quality  Percentage of rejection  Adherence to delivery commitments  After sales service

4.2.3 Functions of stores department

As per the departmental procedure for purchase, all the materials required for the project will come to the stores where the Store Head will be the custodian of all materials


being received. Incoming materials is inspected in accordance with the approved quality plan for the project by officials. Functions are:

 Store Keeping  Inspection of incoming materials  Storage identification and preservation  Equipments records maintenance  Control of customer supplied materials  Stock verification  Safe custody of materials  Optimization of inventory

4.4.4 Procedure of purchase

The procurement action is initiated based on Purchase Requisition raised by the intending department. The PR is originated by the head of the concerned department and authorized by the chief of operation. The PR is received at them Purchase department after the clearance by Stores Department. On receipt of PR in the purchase department the purchase officer in charge of the registration of PR opens the purchase files for each PR and assigns the file to the dealing officer based on the work allocation order issued by the purchase manager. The purchase files are identified by the control number given by stores department while clearing the PR, duly prefixed by the officer code number. The dealing officer then initiates action for the issue of the enquiry.


Raw Materials
CBFS the primary raw material accounts for 55-60% of the total operating costs. Hence, CB manufacturing is a highly raw material intensive industry. CBFS use the residue left after the refining of the crude petroleum oil. Since CBSF prices are closely linked with crude petroleum prices, the CB manufacturers are essentially price takers and are exposed to the risk of volatility in CBFS prices. In order to insulate themselves from such volatility, the domestic manufacturers have formulated a pricing policy which\ tries to pass on the volatility of CBFS prices to the customers by linking with ex-factory CB prices of a producer to its actual purchase cost of CBFS over a quarter.

Raw material cost being a ingredient of the total cost of the procurement of the same is given the highest priority and is monitored at the level of managing director with the help of a committee. PCBL produces around 70-80% of CBFS from the New York Mercantile exchange (NYMEX) either through spot market or futures market. The rest is being sourced from the domestic producers. The CBFS pricing at NYMEX becomes the benchmark price for the domestic producers and hence the ultimate cost to PCBL is the same, still PCBL prefers to impart the CBFS as a domestic feedstock has the lesser quantity of carbon than the imported one.

4.2.5 Roles and responsibilities of store manager

Responsibilities of a store manager may include:

Human Resources, specifically: recruiting, hiring, training and development, performance management, payroll, and schedule workplace scheduling

Store business operations, including managing profit and loss, facility management, safety and security, loss prevention (also called shrink), and banking


Product management, including ordering, receiving, price changes, handling damaged products, and returns

y y

Team Development, facilitating staff learning and development Problem solving, handling unusual circumstances

4.2.6 Responsibilities of purchase manager

The main responsibility of a purchasing manager is to search for the highest quality merchandise at the lowest possible purchase cost for their employers. Purchasing managers evaluate suppliers based on cost, quality, service, availability, reliability, and selection variety. They examine catalogs, commerce publications and directories in order to find the right suppliers. Reputation is one of the main factors purchasing managers use to determine whether or not they want to work with certain companies. While at meetings, trade shows and conferences they inspect products and services, evaluate production and distribution abilities and consider all other aspects that may influence purchasing decisions. Other duties a purchasing manager has are:
y y y y y y y y y

Establishing foreign and domestic suppliers Negotiating the lowest prices Administering online purchasing systems Acquiring materials and parts needed Structuring product contracts Studying sales records and inventory levels Placing orders and checking shipment Controlling departmental budgets Interviewing, hiring and overseeing staff


Appraising products and services

The purchasing managers frequently work more than 40-hours each week because of sales and production deadlines. Usually purchasing managers should be available to travel several days each month in order to attend conferences, trade shows and to meet with suppliers. Additional responsibilities of a purchasing management agent include analyzing market conditions, assisting in the planning of sales promotions, aiding executives in order to decide the nature of the sale and working with advertisers to create ad campaigns for newspapers, television and direct mail. Purchasing managers commonly visit the selling floor to make sure that all goods are displayed accurately.


4.3 PRODUCTION DEPARTEMENT 4.3.1 Structure of the Department

Production in charge

Shift in charge

DCS in charge

Field Officer

Process Technician


4.3.2 Functions of Production Department

The main functions of production manager are as follows a) b) c) d) e) f) g) Production planning of various orders. Arranging raw materials of different qualities. Giving work orders and supply orders. Arranging the production at different stages. Arranging packing materials. Review of all pending order to ensure on time shipment. Taking corrective and preventive action needed to ensure on time shipment.

The whole manufacturing process is controlled by a centralized system called DCS system. The major equipments used for production process are as follows; a) b) c) d) e) f) g) i) j) Reactors Air pre-heaters Process air blowers Compressors Pumps and fans Bag collectors Micro pulverizes Rotary drier Storage silos and automated packaging machines.


4.3.3 Objectives of production department

Production involves the things which are essential for the manufacture of products. The objective of the production management is to produce carbon black right quality and quantity at the right time and right manufacturing cost.

1. Right quality the quality of carbon black is established based upon the customers needs. The right quality is not necessarily best quality. It is determined by the cost of the product and the technical characteristics as suited to the specific requirements.

2. Right quantity the organization should produce the products in right quantity. If they are produced in excess of demand the capital will block up in the form of inventory and if the quantity is produced in short of demand, leads to shortage of carbon black.

3. Right time timeliness of delivery is one of the important parameter to judge the effectiveness of production department. So, the production department has to make the optimal utilization of input resources to achieve its objective.

4. Right manufacturing cost manufacturing costs are established before the product is actually manufactured. Hence, all attempts should be made to produce the carbon black at pre-established cost, so as to reduce the variation between actual and the standard (pre-established) cost.

Elements of production operation managing operations can be enclosed in a frame of general management function . Operation managers are concerned with planning, organizing, and controlling the


activities which affect human behavior through models.

Planning a\Activities that establishes a course of action and guide future decision-making is planning. The operations manager defines the objectives for the operations subsystem of the organization, and the policies, and procedures for achieving the objectives. This stage includes clarifying the role and focus of operations in the organizations overall strategy. It also involves product planning, facility designing and using the conversion process.

Organizing Activities that establishes a structure of tasks and authority. Operation managers establish a structure of roles and the flow of information within the operations subsystem. They determine the activities required to achieve the goals and assign authority and responsibility for carrying them out.

Controlling Activities that assure the actual performance in accordance with planned performance. To ensure that the plans for the operations subsystems are accomplished, the operations manager must exercise control by measuring actual outputs and comparing them to planned operations management. Controlling costs, quality, and schedules are the important functions here.

Behavior Operation managers are concerned with how their efforts to plan, organize, and control affect human behavior. They also want to know how the behavior of subordinates can affect managements planning, organizing, and controlling actions. Their interest lies in decision-making behavior.


Models As operation managers plan, organize, and control the conversion process, they encounter many problems and must make many decisions. They can simplify their difficulties using models like aggregate planning models for examining how best to use existing capacity in short-tem.

4.3.4 Duties and Responsibilities of Production Manager

A production manager is involved in both the pre-production (planning) stage as well as the production (control and supervision) stage. The production management involves dealing with people, particularly those who work in your team. Production managers are also involved with product design and purchasing. The PCBL planners, controllers, production engineers and production supervisors will assist you. In PCBL the production manager's role tends to be more closely integrated with other functions, such as marketing, sales and finance. The main responsibilities of the production manager are:

y y y y y y y y y

Overseeing the production process, drawing up a production schedule. Ensuring that the production is cost effective. Making sure that products are produced on time and are of good quality. Working out the human and material resources needed. Drafting a timescale for the job. Estimating costs and setting the quality standards. Monitoring the production processes and adjusting schedules as needed. Being responsible for the selection and maintenance of equipment. Monitoring product standards and implementing quality-control programmers.


y y y y y

Working with managers to implement the company's policies and goals. Ensuring that health and safety guidelines are followed. Supervising and motivating a team of workers. Reviewing the performance of subordinates. Identifying training needs.

Taking smart decisions for purchase of equipment and machinery for the production unit. Attending meetings with senior board members and managers of PCBL discuss the problems in production (if any) and inventing new technologies for better production.


4.3.5 Production process 5

Process air

Cracking reactor

Primary bag collection

Micro pulverization

Dense bag collection






PCBL manufactures Carbon Black by a process known as the Oil Furnace Process. Carbon Black Feed Stock used as raw material are hydro carbon oils rich in carbon content of petroleum and coal tar origin, preheated air and oil feedstock are injected in reactor lined with high temperature refractorys kept at a temperature of 1200-1600 degree celcious, where the feedstock undergoes cracking or decomposition.

The decomposition of the feedstock in deficiency of air and under carefully controlled conditions results in the formation of Carbon Black aggregates. The reaction which takes place in a few milliseconds is stopped by water quench. The resultant smoke carrying Carbon Black is quenched with water sprays and passed through heat exchangers, which in turn preheat the inlet oil and air thus achieving conservation of energy and improving the yield.

The product stream i.e. smoke is further cooled by secondary water quenching in vertical towers. it then enters bag filters where carbon black is separated from gas , the by product called off gas having low calorific value (around 650-700kcal/NM3 average) is burnt and the heat is utilized for generation of stream , drying operation &generation of power. Separated carbon black dust is pneumatically conveyed to a pelletize where the help of water solution and high gyrating force pellets are formed which are dried in rotary dryers finally stored in product storage tanks , products are bagged in paper bags(2.5kg.nt). PCBL manufactures carbon black in a number of grades. The various grades can be broadly divide between two categories, viz, Hard Black & Soft black. Hard Black is manufactured by a process called tread stream and is basically used for the outer surface of the tyre. Soft Black is manufactured by a process called carcass stream and is basically used for the inner surface of the tyre. The process flow schematic diagram is enclosed.

Surface area and structure are two primary variables in the process, which result in different grades, changes in surface area or structure or both at a time to pre-calculated


levels will effect change over into other grades. Surface area is changed by changing operating conditions in the reactor, such as

a) Throughput(oil rate) oil burner positions b) Residence time(time of reaction) c) Oil-air ratio

Major equipments used 1. Reactors No: 3 & 6 2. Air pre-heaters 3. Process air blowers 4. Compressors 5. Pumps and fans 6. Bag collectors 7. Micro Pulverizes 8. Mixer Palletizes 9. Rotary Drier 10. Storage silos and auto packer

Four main stages of processing 1 Cracking 2. Filtering 3. Pelletisation 4. Drawing

Type of reactors used for the process 1Tread 2. Carcass Preservation of products


The department preserves the conformity of the product during internal processing, storage and delivery to the intended destination. The preservation of the product includes the protection of products against damage or loss during packaging, handling, storage and delivery.

4.3.6 Product Identification

Colour code and batch number is used to identify packed products. Batch numbering system followed for finished goods are as follows; K XX YY ZZ A/B OOX; where; K:- Kochi Plant XX: - Year YY: - Month ZZ: - Date A: - Material packed in paper bag machine B: - Material packed in bulk bag machine OOX: - Serial number for the batch of a particular day


4.4 HR AND ADMINISTRATION DEPARTMENT 4.4.1 Department structure

Head Human Resource and Administration


Senior officer

Junior officer


Sr. assistant Sr. telephone operator

Warehouse assistant driver cum attendant


4.4.2 Objectives of human resource management

a) The satisfaction of the society. b) Identifying the need for training and performing training programs c) Effective utilization of manpower and materials in productive work. d) Satisfaction of personal objectives of members of the organization.

4.4.3. Functions of HR department

1. Manpower planning
The requirement of human resources for the organization is based on the long term business plan of the organization.

2. Training
Providing training to employees will result in high productivity, improving the quality and help the company to fulfill its organizational goals. There are two types of training. 1. Behavioral training and 2. Technical training The technical training comprises of on the job training and technology up gradation training. Behavioral training comprises of soft skills development training. In the beginning of the year a letter will be sent to the department head to identify skill gap for behavior, technical training. After the identification of training needs human resource department prepares a training calendar showing person, program, month, and faculty. A questionnaire will be send to all department heads to know the change imparted by training.


Competency profiling' is a method of CRG is used in PCBL which links compensation to the 3 ps-person, position, performance. The model has helped the organization in position clarification, objective setting, performance review, position evaluation and personal development of executives. Training shall be imparted in any of the following means in- house (on the job, of the job ) external or third party training center. Training method to be adopted on case to case basis depending on the need and profit of the personal required to be trained. In case of transfers or new recruitment of personal, training is imparted by the head of the respective department and sent to hed HR and administration. Candidates selected as management trainees shll be imparted with the on the job training for the period of half year based on requirements. Annual appraisal of all management staff shall be conducted as per RPG group policies from time to time.

3. Recruitment and selection

The sources of recruitment of the company include both internal and external sources. The company chooses external sources like campus recruitment personnel reference etc. The company is in no way interested on conducting recruiters like privet employment

agencies for hiring purpose. Direct recruitment is made by the personnel manager and concerned head of the department.

Selection procedure
Firstly the applicant has to fill a manpower requisition from. The shortlisted candidates are invited to attend interview and the best candidate is selected among them and given introduction training. The selected candidates are appointed on a probation basis for six months after that they are eligible for all benefits from the company. The promotion of the employees is based on merit. The performance appraisal management system is highly active in the department. During the beginning of the year duties and responsibilities each employees are prepared and


some standards are fixed in order to compare the actual performance with standard performance.

4. Industrial relations
PCBL is having a smooth industrial relation set up. There are two unions representing the unionized category of workmen, namely PCBL employees union and CACIL employees association. There are four year long term settlements signed before the labour commissioner towards ensuring wage hike, perquisites and productivity. Unions and management strictly follows industrial disputes act 1947, which contains provisions dealing with grievances redressed. GRIEVANCE procedure If any workman has any grievance to be redressed he must place the same before his superior officer as soon as possible. If no satisfactory redressed is obtained from the superior within 7 days the workman shall proceed with the formal grievance procedure. a) Present a written statement of his grievance to the department head through proper channel. The department head shall investigate the matter and give his decision in writing to the workman within 10 days. b) On failure to receive a satisfactory redressed from the department head the workman may submit his grievance in writing to the G.M Tech/head of the factory in respect of workman in the factory and an officer of the registered office authorized by the management. c) No grievance will be entertained by the GM (tech) officer authorized by the management unless the formal grievance procedure has been followed as given above except when it can be specifically shown that the department head is a party to the grievance.


4.4.4 Responsibilities of HR manager

y To maintain and develop HR policies, ensuring compliance and to contribute the development of corporate HR policies. y Provide active support in the selection of Recruitment agencies which meet the corporate standard. y Develop, refine and fine-tune effective methods or tools for selection / or provide external consultants to ensure the right people with the desired level of competence are brought into the organization or are promoted. y y y y y To develop the HR business plan. Ensure appropriate communication at all staff in PCBL. To facilitate / support the development of the Team members To facilitate development of staff with special focus on Line Management To recommend and ensure implementation of Strategic directions for people development in PCBL. y Ensure a motivational climate in the organization, including adequate opportunities for career growth and development. y y Oversee the central HR Administration Co-ordinate the design, implementation and administration of human resource policies and activities to ensure the availability and effective utilization of human resources for meeting the company's objectives. y Counseling and Guidance cell - provide support to Managers in case of disciplinary issues.

Employee service and benefits;

a) Safety provision inside the workshop. b) Employee counseling to solve the work problems and personal problems.


c) Medical treatment is provided to all the employees in the organization. d) Canteen facilities. e) Yearly tour programmers are provided to both managerial staff as well as the employees in the organization.

Performance appraisal
RPG Enterprise recognizes and honors performance through:

An aggressive performance management system Awards for outstanding performance Fast track careers for consistent high performers Career opportunities in the various business sectors of the group Organization and Management review process at the management committee level that reviews the status and progress of high fliers



4.5.1 Department Structure


Manager instrumentation

Manager mechanical

Manager electrical

Asst. Manager Instrumentation

Asst. Manager mechanical

Asst. Manager electrical

Eng. Mechanical Management trainee Management trainee Engineer instrumentation


Technical engineers

Asst. Forman Forman

Asst. Forman

Fitter Asst. Forman Draught man

Instrumentation mechanics

Electrician Helper

The maintenance department is concerned with rectifying problems related to 3 sections; a) Mechanical section:- It rectifies mechanical defaults of machines and equipments in the plant. The precaution initiative is taken by the head of the department for the whole year. Once in every year, shutdown maintenance is performed for improving the performance of the machineries in the plant. b) Electrical sections:- It is engaged only for rectifying power failures. c) Instrumentation section:- It deals with the maintenance of instruments showing temperature of machines, flow of fuel, water etc.

4.5.2 Objectives of maintenance/engineering department

a) Maximization of plant availability. b) Minimizing breakdown of all the 3 sections. c) Implementation of scheduled preventive maintenance. d) Implementation of planned condition monitoring.



a) Preventive measures. b) Corrective measures. c) Material intend raising and inspection. d) Statutory inspection. e) Equipment history. Preventive measures are adopted in order to avoid future failures. Its aim is to bring down the machine failures to zero. Engineers are provided with checklist. To check whether the machines are running properly. Running maintenance is adopted when a machine fails. Shut down maintenance is carried out for improving the performance of the organization.



4.6.1 Structure of the department

Head engineering

Section head warehouse


Heads man

Packing mazdoors



4.6.2 Functions of the department

a) Ensuring effective running of the department. b) Planning as per planning schedules. c) Responsible for packing, dispatch and inventory control of packing materials. d) Inspection and monitoring performance of packing machine and counter weight checking. e) Analysis of customer complaint on packing and taking necessary actions. f) Inspection and approval of packing material and wooden pallets. The department stores the product after packing until delivery. PCBL has a storage capacity of 10,000 tones. After testing by the quality assurance department, the products are stored in the storage which is having different compartments that are based on grades. The packing process is done automatically through a machine which performs the following functions like; Bagging, Stitching, Weighing There are 2 types of packing. They are: b) Jumbo bags which is about 1 ton approximately. c) Paper bags which is about 25 kg. The main functions carried out are :a) Storing b) Packing & Loading



4.7.1 Structure of the Department

Head logistic

Senior assistant The policy of this department are:a) On time delivery of products to customers b) Optimization of transportation cost for dispatches from plant The responsibilities of Head logistics are:a) Scheduling dispatches from the unit b) Selection of carriers and negotiating terms of business c) Performance review of carriers



The department reduces pollution of air and water due to production process. The company was awarded with ISO 14001 in 2004 for environment management systems. PCBL promoted an ETP(Effluent Treatment Plant) which reduces water and oil through an oil separator. Cochin unit was ranked 3rd among large industries in Kerala for its effort in controlling pollution during 2004. PCBL has also received awards like ICMA award for novel energy conservation in chemical plants of the country and CHEMTECH foundation award for wealth from waste in 1997. PCBL has installed secondary bag filters in its Cochin unit. It is the only industry with secondary bag filters. Whereas all other carbon black manufacturers rely on primary bag filters. The bag filters are those that are used to prevent any release of carbon black into the atmosphere.

4.8.1 Functions of the department

a) Setting and reviewing the environmental objectives. b) Adopting the most appropriate manufacturing process. c) Controlling pollution. d) To be an environmental friendly organization.



4.9.1 Structure of the department

Manager R&D

DY. Manager

SR.. Chemist

Lab assistant



4.9.2 Stages of quality control test

Quality control tests are conducted by way of in process test and finished goods testing. In processing test are conducted during the process and is carried out with the help of dust where as finished goods testing is carried out after production. Finished goods testing are done by taking one sample from each tonne. The parameter for testing is surface area and structure since the requirements for every customers are different. Various quality test are carried out such as iodine absorption test, pellet hardiness test, PH test etc. Fundamental research works are going on areas y Dual filter mechanism y Surface modification of carbon black y Development of non- ASTM black as per customer requirements y Development of LL black



Marketing functions of PCBL are centralized. PCBL Cochin unit has no separate marketing department. Marketing functions are carried out through the head office of PCBL, Kolkata. PCBL has 5 regional offices for coordinating the marketing process. Each regional offices have: y y y 1 regional marketing manager 1 accountant Other supporting staff

Production plan for Cochin unit is given from the head office and production is made accordingly. The logistics department in the plant acts as the marketing department. They make necessary arrangement for loading the products and coordinate other related activities. 90% of the production is directly acquired by the tyre manufacturing companies and remaining 10% by a soul distributor (A V Thomas & Co.).



Generating Process Power The main functions of department are : y y Produce and supply electricity as per requirement Produce and supply steam

The off-gas which comes out of the bag filter after being separated from carbon black is basically a bi-product gas with a low calorific value. This waste gas is burned and heat generated from combustion is used to generate steam in the boiler which in turn runs the turbine to generate power. The combustion furnaces a re built to incorporate the three most critical requirements for burning low calorific value process waste gas namely: y y y Time for good mixing of combustible Temperature for bringing combustibles to its ignition point Turbulence to complete the combustion without going below the ignition point

The combustor is a refractory linked furnace and is kept hot to provide proper temperature. Cyclonic principle is used to provide turbulence and intimate mixing of process waste gas and combustion air adequate combustor volume is provided for the necessary residence time to complete the oxidation of the combustible components. The process waste gas enters the refractory linked combustor tangentially through a rectangular part at high velocity. Tangential entry and high velocity imparts a strong swirl to the process waste gas and the resulting centrifugal force makes the process waste gas burn the hot refractory. The part of the combustion air is forced into swirling process waste gas through multiple radial nozzles in the refractory. This high momentum jets help the less viscous air to mix well with the more viscous process.





SWOT analysis is a basic, straightforward model that provides direction and serves as a basis for the development of marketing plans. It accomplishes this by assessing an organizations strengths (what an organization can do) and weaknesses (what an organization cannot do) in addition to opportunities (potential favorable conditions for an organization) and threats (potential unfavorable conditions for an organization). SWOT analysis is an important step in planning and its value is often underestimated despite the simplicity in creation. The role of SWOT analysis is to take the information from the environmental analysis and separate it into internal issues (strengths and weaknesses) and external issues (opportunities and threats). SWOT analysis is done for a company, to find out its overall Strengths, Weaknesses, Threats and opportunities leading to gauging the competitive potential of the company. The SWOT Analysis enables a company to recognize its market standing and adopt strategies accordingly. Here SWOT analysis of Neon Paints is made to understand the positioning of the company better.

5.1.1 Strength
a. Reputation of the company. b. 40 years of experience. c. Professional management. d. Latest technologies e. Sound financial position. f. Better customer satisfaction. g. ISO 9001:2000 certification.


h. ISO 14001:2004 certification. i. ISO TS 16949 certification. j. Less employee turnover ratio. k. Wide market share in the domestic market.

5.1.2 Weakness
a. Raw material of production has close relationship with crude oil prices. b. The company faces risk when there are market fluctuations in foreign exchange rate and due to strict regulations relating to the import of raw materials.

5.1.3 Opportunities
a. Growth in the domestic automobile industry. b. The company can convert off gases to produce electricity and boost profitability. c. The road infra structures can increase the demand for tyres which can lead to the increase in demand of carbon black.

5.1.4 Threats
a. Increase in the cost of feedstock. b. Volatile trade union. c. Import of carbon black.



y There exist a well established organizational structure with the top level management, the middle level management and the bottom level management.

The organization has a well laid department structure with separate department heads for each functional areas.

All departments in the Company are ISO 14001 certified. Regular internal and external audits are conducted to check the compliance and renewal of certificate. There is a full swing total quality management system and it works efficiently ensuring the total quality of the organization and its product and services.

The company generates electricity for its operation on its own and the power generated in excess of its requirement is sold to K.S.E.B

Materials management is so efficient that there are very less chances of damaged goods and scrap items. The company takes necessary steps to see that damaged goods are not coming in and going out.

PCBL Cochin unit has no separate marketing department. Marketing functions are carried out through the head office of PCBL

All the employees and laborers are found to be working hard towards achieving the organizational goal.

For solving grievance open door policy is used by top level management.


y The plant may think of a separate marketing department so that the time lag for decision making may be reduced. y The company must try to locally source the required raw materials to the maximum extend y The company should look at the option of generating more electricity as it can contribute to reducing the problem of acute power shortage in the state. y The company may arrange for the transportation of its employees so that better employee welfare can be ensured. y The company should initiate Public Relations activities to do away with its negative image of a polluter. y The company has to focus on global market to increase its profitability y Latest production technologies may be implemented so as to reduce the production cost. y The company must take the trade union into confidence so that tensions may be reduced


Chapter 6


Phillips Carbon Black Ltd., part of the RPG group pioneered the carbon black industry in India. It is now the leading producer of carbon black in the country and the 7th largest carbon Black company in the world. Rapidly evolving trends constantly revolutionize the manufacturing industry. To achieve competitive quality PCBL has been continuously upgrading the technology.

The study in Phillips Carbon Black Ltd has enabled the investigator to understand the various needs of an organization, how an organization of a corporate nature functions and how important it is to have a right relationship between the employee and employer or the management.

The study was conducted with a view to understand the functions of an organization, and its various departments. The organization study helped the researcher to understand that any objective cannot be achieved in a short span of time.It needs to be undertaken systematically.. Finally, in any organization time management play important role because each activity should be done at a right time at right place This study has improved my confidence by its successful completion to undertake such studies in the future. "Productivity is never an accident; it is always a result of commitment to excellence, intelligent planning and focused effort".


Books a) Arun Kumar and Meenakshi, - Marketing Management, second edition, Vikas publishing house Private Ltd New Delhi. (2006) b) Kothari.C.RResearch Methodology methods & techniques, New age

international publishers, 2004. c) Aswathappa K- Human Resource & Personnel Management, Tata McGraw Hill publishing co. ltd., 1999. d) Pandey.I.M Financial Management, Vitas publishing house Private Ltd, 2000.

e) Website :- f) Annual report of PCBL Ltd. g) Company brochure.