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Industrial training at

FACT
UNDER THE GUIDANCE OF
DR.M.S JAYAMOHAN
DEPARTMENT OF
MECHANICAL ENGINEERING
R.I.T,KOTTAYAM

DEEPAK CHERIAN
Roll No : 07
S3 IEM
RIT, KOTTAYAM

OBJECTIVES OF THE STUDY


To understand the organizational structure of

FACT
To understand the various key functional
areas of the company
To get an idea about existing business
operations at FACT.
To interact with managers at various levels of
the organization hierarchy
To analyse the practical aspect in relation to
the theoretical aspect of the organization

Data collection
PRIMARY
Direct interview with the department heads
Discussion with the divisional heads
Interaction with workers in the company
Data collected by observing the function of the organization

SECONDARY
Annual reports of the company
Department manuals
Periodicals, books, etc. published materials by the company
Company website

COMPANY PROFILE

Fertilizers and Chemicals Travancore Ltd


FACT, Indias first large scale fertilizer unit was set up in

1943 as a rsult of the efforts taken by farsighted


administrator of Travancore Dr.C.P. Ramaswamy Iyer .
In 1947, FACT Udyogamandal started production of
Ammonium Sulphate with an installed capacity of 10,000 MT
Nitrogen.
To meet the emerging need for indigenous capabilities in
vital area of Engineering, Design and Consultancy FEDO
and FEW were set up on 1965.
VISION
To emerge as a leading company in the business of providing quality agriculture
and industrial inputs and providing engineering services for industrial and
infrastructural facilities.
MISSION
To function as a dependable and globally competitive producer of fertilizer and
other allied products and to develop self reliance in the field of engineering and
technology, especially in the field of fertilizers, chemicals, petrochemical, oil &
gas industries.

HISTORY
FACT, India's first large scale fertilizer unit was set up in
1943 1943
FACT Udyogamandal started production of Ammonium
1947 Sulphate with an installed capacity of 10,000 MT Nitrogen

1960 FACT became a Kerala State Public Sector Enterprise in 1960


The Government of India became the major shareholder.
1962 The 2nd stage of expansion of FACT was completed
The 3rd stage of expansion of FACT was completed in 1965

1965 FACT Engineering and Design Organization was set up on 24th


July 1965
FACT Engineering Works was established on 13th April 1966
FEW developed capabilities in the fabrication of pressure
1966 vessels and heat exchangers , condensors, large penstocks ,
barges etc.

1973

UD 4th stage 150TPD Ammonium Phosphate plant was set up

The Cochin Division of FACT, the 2nd production Unit was set
up at Ambalamedu
1973 The 1st phase was commissioned in 1973.
The 2nd phase of FACT Cochin Division was commissioned
in1976.
CD II Sulphuric Acid Plant commissioned
1976 CD II Phosphoric Acid Plant commissioned
CD II NPK trial run started

1977

CD II NPK commercial production started

50000 TPA Caprolactam Plant at Udyogamandal was


commissioned in1990.
1990 CD-12MW Captive Power Plant was set up

PD Caprolactam commercial production


started
1991 UD New AmmoniumSulphate commercial
production started
900 TPD Ammonia plant commercial
1998 production started

2010

2014

Safety Award, National Safety Council

FAI Award for Best Production Performance

BOARD OF DIRECTORS

Shri. Jaiveer Srivastava


(CMD)

Shri S. K.
Lohani
Director

Shri Vinod
Kumar
Thakral
Director

Shri K P S
Nair
Director

Dr. Murali S
Director

ORGANIZATION STRUCTURE

DEPARTMENTS OF FACT
FACT
Corporate
Head Office
CD

UD

PD

FEW

FEDO

CSC

MD

MDC

R&D
CENTR
E

CD Cochin Division
UD
Udyogamandal Division
PD Petrochemical Division
FEWFACT
Engineering Works
FEDOFACT Engineering and Design Organization CSCComputer
Service Centre
MD Marketing Division
MDCManagement
Development Centre

MANPOWER OF FACT
Category

Employee

HO

CD

PD

UD

group

Mark FED

FEW

Total

eting O

Managerial

Managerial

113

113

60

176

72

61

17

612

Managerial

Managerial

Managerial

Trainees
Managerial

*Managerial

deputation

116

113

60

176

72

61

17

615

Non-

Non-Managerial

19

27

33

30

117

Managerial
Non-

Clerical
Non-Managerial

14

297

99

401

12

832

Managerial
Non-

Skilled
Non-Managerial

22

119

33

178

360

Managerial
*Non-

Unskilled

55

443

134

612

46

11

1309

Managerial
Sub Layer

Sub-Layer Clerical

53

13

11

15

107

Sub-Layer

Sub-Layer Skilled

136

70

99

319

*Sub-Layer

58

149

77

110

19

426

229

705

271

898

137

76

34

2350

Total

MANUFACTURING DIVISIONS
Udyogaman
dal Division

Petrochemic
al Division

Fertilizer plants
Ammonium sulphate
plant
Sulphuric acid plant
Ammonia plant

ANONE Plant
HYAM Plant
LACTUM Plant
Captive Power
Plant

Cochin
Divisio
n
Cochin Division

Fertilizer Plants
Ammonia Plant
Sulphuric Acid
Plant
Phosphoric Acid
Plant

UDYOGAMANDAL DIVISION PLANTS


Sulphuric
Acid
Plant

Capacity of 1000 TPD


Double combustion double absorption process (DCDA)
Basic raw material is imported Sulphur

Phosphori
c Acid
Plant

Capacity of 360 TPD of P2O5


The Prayon conversion process
Basic raw material is rock phosphate

Ammonia
Plant

Capacity of 600 TPD


Feed stock is LNG
Haber process

Complex
Fertilizer
plant

Capacity of 225000 TPA of ammonium sulphate and


125000TPA of factamfos.
Raw materials are Ammonia, Sulphuric acid and
Phosphoric acid
TVA Granulation process

COCHIN DIVISION PLANTS


Sulphuric Acid
Plant
Phosphoric Acid
Plant
Complex
Fertilizer Plant

Capacity of 1000TPd of monohydrate


Contact Process
Double Conversion Double Absorbtion process
Plant designed by FEDO

Capacity of 360TPD of P2O5


Prayon Convertible Process
Plant designed by FEDO
Capacity of 80 TPH of NP (20:20:0) & 60TPH
of Diammonium Phosphate
TVA granulation process

ORGANIZATIONAL BREAKDOWN
STRUCTURE OF FACT CD
CGM

GM
Operations

DGM
(Civil)

DGM
(Mechanical)

Sr.Manager
(Civil)

AGM
Mechanical)

Dy.Manager
(Civil)

Sr.Manager
(Mechanical)

Asst.Manager
( Civil)

Asst.
Engineer/
Manager

GM
Technical

DGM
(E&I)

DGM
(Production)

AGM
Production (NP)

Sr.Manager
Production (NP)

Asst. Engineer/
Manager

AGM
Production (PAP)

Sr.Manager
Production (PAP)

Asst.
Engineer/
Manager

AGM
Production (SAP)

Sr.Manager
Production (SAP)

Asst.
Enginer/
Manager

AGM
(E&I)

Sr.Manager
(E&I)

Asst.
Manager/
Engineer

DGM
(TS)

AGM TS
(Process)

Asst.
Engineer/
Manager

DGM (P&P)

AGM TS
(Engineering)

Asst.
Engineer/
Manager

AGM (P&P)

Sr.Manager
(P&P)

Asst.
Manager/
Engineer

FACT ENGINEERING & DESIGN


ORGANIZATION( FEDO )
Established in 1965
Premier engineering consultancy

organization in India
Major works include :Design
Engineering
Implementation of projects in process,
petrochemicals, fertilizers
ISO 9001: 2008 certified company

FUNCTIONAL DEPARTMENTS OF FEDO


FEDO

Process
Engg

Civil

Engineering

Mechanical

Piping

Process
Combustion
Equipments

Machinery and
Material
Handling

Construction

Electrical

Project
Management

Instrumentation

Quality
Management

Inspection

ORGANIZATIONAL BREAKDOWN
STRUCTURE
COO

CGM

GM

GM
(Process)

GM
(Engineering
Project
Constuction)

DGM
(Drawings)

DGM
(Civil)

DGM
(Electrical)

DGM
(Instrumentation
)

DGM
Commercial
DGM
(Mechanical)

DGM
(Piping)
AGM
Commercial

AGM
(Drawings)

AGM
(Civil)

AGM
(Electrical)

AGM
(Instrumentation
)

AGM
(Mechanical)

Engineer/
Manager

Engineer/
Manager

Engineer/
Manager

Engineer/
Manager

DGM
(Process)

AGM
(Process)

AGM
(Piping)
Engineer/
Manager

Engineer/
Manager

DGM
(HR)

Engineer/
Manager

Engineer/
Manager

FEDO continued.
Softwares used
STAADPRO, ETABS, AUTODESK
INFRASTRUCTURE DESIGN SUITE, AUTODESK
BUILDING DESIGN SUITE, AUTOCAD, CAESARII, ASPEN HTFS, PIPENET, PPS, CAD WORX etc.
Project planning softwares like Primavera P6
and MS Project 2007 Professional
Works done
Mechanical piping
Mechanical (M & MH)
Mechanical (PCE)

Clientele of FEDO
Oil and Gas
Indian Oil Corporation Limited
BPCL, Kochi Refinery(KR)
Oil and Natural Gas Corporation Limited
Gas authority of India Limited
Hindustan Petroleum Corporation Limited
Bharat Petroleum Corporation Limited
IBP Co. Limited
Chennai Petroleum Corporation Limited
Oil India Limited

Clientele of FEDO.
Fertilizer
National Fertilizers Limited(Panipat, Bathinda and
Nangal)
Krishak Bharti Co-operative Limited
Madras Fertilizers Limited
Paradeep Phosphates Limited
Indo Gulf Fertilizers and Chemicals Corporation
Limited (Hindalco, Dahej)
Oswal Chemicals and Fertilizers Limited (IFFCO
Paradeep)
Gujarat State Fertilizer Corporation
Gujarat Narmada Valley Fertilizer Corporation Limited

Clientele of FEDO.
Infrastructure
GIDA( Goshree Islands Development
Authority)
KINFRA( Kerala Infrastructure Development
Corporation)
KSIDC( Kerala State Industrial Development
Corporation)
RBDCK( Roads and Bridges Development
Corporation Kerala)

FACT Engineering Works (FEW)


The Fabrication and Engineering Division of FACT
Established in the year 1966

Equipments fabricated by FEW include : Class I Pressure Vessels,


Heat Exchangers in Carbon Steel, Alloy Steel
and Stainless Steel,
Chemical Process Equipments,
Penstock Pipes,
Coloumns,
Towers,

Organization chart of FEW


General Manager

DGM
(Shops)

DGM
(Projects)

Manager
(Commercial)

AGM
(Design)

AGM
(Planning &Projects)

Design Engineer

Project Manager/
Engineer

Drafting section

Planning and
Projects
Department

AGM
(shops)

Shop Engineers

Technitians

AGM
(Materials)

Purchase and stores


Department

DGM
(Inspection)

Senior Officer
(Administration)

Inspection
Department

FEW continued.

Staff strength
GM-1 , DGM-2, AGM-4, Engineers-6,
Others: Technical-15, Non-Technical-11,
Contract Employees-65
Total strength 104
Annual Capacity of shop
Annual capacity= 1000 tons*(*excluding
external jobs/projects)

Major Clients of FEW

Cochin Shipyard- Hatch covers, Air receivers, Crane

posts, Spuds, Bulk Storage Tanks etc.


KMML- Heat exchangers and Pressure vessels
KSEB- Penstocks and Steel liners
Cochin Refineries Heat exchangers, Pressure vessels
and Columns
IOCL Rail mounted LPG bullets
BPCL Pressure vessels
CPCL Pressure vessels
ONGC Offshore platform accessories
VSSC Gas cooler, Propellant tank, Heat exchangers
FCRI Calibration vessel
FACT UC Vessels, Columns, Strippers, Heat exchangers etc.
FACT CD Urea Hydrolyzer, Pressure vessels etc.
MRPL Pressure vessels

Marketing and Human Resources


Departments
Marketing

The village adoption scheme


The fertilizer festival
FACT Krishi Vigyan Kendra
100 Agro Service Centers, 50 field storage points and
over 7900 retail selling points

HR Department

Managing the total strength of about 2350


employees
Management Development Centre (MDC) engaged in
the training and development of managerial
personnel
Personnel Welfare Activities
Community Development Programs

Vigilance department

Headed by C.V.O
Adopted preventive vigilance as the main theme
Providing Transperency and accountability in the
working of the company

Pollution control and R&D


Departments
Aim of carrying out in-depth research

to new
fertilizer formulations and value additions of
existing product lines in the organization
Developing dye for coloring Zinc fortified Factamfos
Quality control cell
Bio fertilizer production by utilizing raw materials
from Coir fed.
Conservation of energy and technology absorption
Alkaline scrubbing of gaseous effluents.
Limiting phosphate to 4mg/liters, fluoride to
2ppmand ammonia to 5ppm

PRODUCT PROFILE

PRODUCT PROFILE
Finished Products
Ammonium sulphate Udyogamandal Division
Ammonium Phosphate/ Complex fertilizers/
Factamfos Udyogamandal Division and Cochin
Division
Caprolactum Petrochemical Division
Biofertilizers Research & Development Division
Exported Products
Caprolactum Petrochemical Division
Ammonium Sulphate Udyogamandal Division
Byproducts
Nitric Acid & soda Ash Petrochemical Division
Gypsum Udyogamandal Division & Cochin
Division
Carbon Dioxide Gas Udyogamandal

Intermediary Products
Ammonia- Udyogamandal & Cochin Division
Synthesis Gas Udyogamandal Division
Sulphuric Acid Udyogamandal & Cochin Division
Oleum Udyogamandal Division
SO22 Gas Udyogamandal Division
Phosphoric Acid Udyogamandal & Cochin division
Straight Fertilizers
Ammonium sulphate Containing 20.6% N in
Ammonical form and 24% sulphur, an important
secondary nutrient
Complex Fertilizers
Factamfos 20:20:0:15- NPK complex fertilizer
Factamfos or Ammonium Phosphate contains 20% N in
ammonical form, 20% P in water soluble form and 15%
sulphur; a secondary plant nutrient, which is now
attaining great importance in agriculture. Factamfos
also can be used for foliar spraying.

NPK Mixtures
NPK Mixtures FACT prepares crop specific standard mixtures for all
crops in Kerala and also special NPK mixtures for plantation crops
like Tea, Coffee, Cardamom, Rubber etc.

Bio fertilizer FACT produces and markets Nitrogen fixing Bio


fertilizers Rhizobium, Azospirillium and FACT organic.

Chemicals
Anhydrous Ammonia FACT produces Ammonia of over 99.96%
purity.
Sulphuric Acid FACT has one of the largest plants in Asia and it
manufactures Sulphuric acid of 98% purity.
Caprolactum It is the raw material for Nylon-6.The product quality
of FACT Caprolactum is among the best available in the world.
Nitric acid and Soda Ash Small quantities of these are obtained
from Caprolactum plant as byproduct with capacity of 3800 TPA and
4750 TPA respectively.

Competitors of FACT
SPIC Southern Petrol Industrial Chemicals ( Products-

Urea, Di Ammonium Phosphate and intermediaries)


MFL Madras Fertilizer Ltd. (Products- NPK 17:17:17 ,
Bio fertilizers, Agro chemicals)
NFL Nagarjuna Fertilizer Ltd. (Product Urea)
MFL Mangalore Fertilizer Ltd. (Products Urea,
Complex fertilizers)
RCF Rastria Chemicals Fertilizers Ltd. (Products- Urea,
Di Ammonium Phosphate, MOP, Complex fertilizers)
IFFCO Indian Farmers Fertilizer Co-operative (ProductsUrea, Ammonium Phosphate and complex fertilizers.

Major Raw Material


Suppliers
Russia
UAEMorocco- Rock Phosphate

Annual Production Performance of


Complex Plants(in Metric Tonnes)
700000
600000
500000
400000
300000
200000
100000
0

NP
Sul. Acid
Phos. Acid

BUSINESS PORTFOLIO
900000
800000
700000
Tonne
s

600000
500000

Production
Sales

400000
300000
200000
100000
0

2013-14 2014-15 2015-16

Fertilizers

FINANCIAL
PERFORMANCE
350000
Rs. in Lakhs

300000
250000
200000

2011-2012
2012-2013
2013-2014
2014-2015
2015-2016

150000
100000
50000
0
-50000
-100000

Turn over

Profit/Loss

Weakness

Strength
SWOT
Analysis
Opportunities

Threat

Weakness
Strength
1.Premium
1.Premium product
product in
in the
the complex
complex fertilizer
fertilizer
segment
segment
2.Production
2.Production of
of caprolactum
caprolactum
3.High
3.High level
level of
of capacity
capacity utilization
utilization
4.Land
4.Land and
and other
other infrastructure
infrastructure facilities
facilities
5.Strong
5.Strong market
market network
network
6.Strong
6.Strong manpower
manpower utilization
utilization with
with respect
respect to
to
higher
productivity
higher productivity
7.Good
7.Good quality
quality and
and environmental
environmental
policy
policy

1.Working
1.Working capital
capital management
management is
is not
not
effective
effective
2.Lack
2.Lack of
of younger
younger manpower
manpower teams
teams
3.Possible
3.Possible ineffectiveness
ineffectiveness of
of practical
practical
management
management
4.Production
4.Production downfalls
downfalls
5.Energy
5.Energy consumption
consumption is
is high
high
6.Over
6.Over dependence
dependence on
on import
import of
of raw
raw
materials
and
the
logistics
materials and the logistics

SWOT

Opportunities
1.Possibilities
1.Possibilities of
of export
export
2.Product
2.Product diversification
diversification
3.Regular
3.Regular safety
safety and
and energy
energy audits
audits
4.Availability
4.Availability of
of land
land resources
resources for
for generating
generating
additional
revenue
additional revenue
5.New
5.New recruitments
recruitments
6.Availability
6.Availability of
of RLNG
RLNG at
at Kochi
Kochi

Threats
1.Non-availability
1.Non-availability of
of sufficient
sufficient quantity
quantity of
of
certain
raw
materials
certain raw materials
2.
2. Price
Price fluctuations
fluctuations
3.Unfavourable
3.Unfavourable policies
policies of
of government
government
4.Severe
4.Severe competition
competition
5.Existing
5.Existing dept
dept

FINDINGS

FACT has been facing huge loss due to the use of Naphtha as feed stock

which is not economical.


Proper maintenance and renovation of existing plants are needed immediately.
FACT has been facing a stiff competition after globalization from various

competitors which has large capacity than FACT.


Introducing product variants and bio fertilizers will be an added advantage.
Man power reduction and employee reallocations
Time taken for decision making and its implementation is high due to large

structure.
The authority and responsibility is clearly defined in this organization.

The authority and responsibility is clearly defined in this

organization.
Employees are well qualified, skilled and dedicated to the
organization.
FACT conducts training programs for employees for the
purpose of increasing their efficiency.
The organization always keeps a good communication system.
There are strict rules and procedures followed by FACT for
issuing quotations.
FACT gives more importance to their employees safety and
safety measures.

RECOMMENDATIONS
FACTS products has already captured south Indian market

but there is a need to expand operations to north India.


Cost of production can be reduced by using modern methods
and modify the plant to become more efficient.
The cost of NAPHTA is very high and its use for the
production of ammonia, leads to high cost of production.The
use of LNG can reduce this cost.
Young and innovative workers should be given opportunities
as there is lack of fresh and young blood in the organisation.
Land utilization should be more effective.

CONCLUSION
The production process in FACT was studied
The various functional departments in the

company was familiarized


An idea about the organizational structure
was obtained
The company is facing huge loss over the last
few years
The quality of products is among the best in
the world
The company is having high potential for
expansion and recapturing the market.

REFERENCE
www.fact.co.in
Company Brochures
Annual report
FACT NEWS