AN ORGANIZATIONAL STUDY ON KERALA MINERALS AND METALS LIMITED, CHAVARA Submitted in partial fulfillment of the requirement for the award of the Degree of Master of Business Administration of Mahatma Gandhi University, Kottayam, Kerala Submitted by JIJO THOMAS ENTROLLMENT NO : COURSE CODE : CC21 Under the guidance of Mr.Jayan BSS INFORMATION TECHNOLOGY MISSION THYCAUDMG UNIVERSITY OFF CAMPUS ACADEMIC CENTRE
ACKNOWLEDGEMENT First of all I thank Almighty God who has been with me throughoutthis endeavour and helped me in completing this project successfully. I have great pleasure in expressing my sincere and grateful thanks tomy internal guide Mr. John for continuous guidance throughout this project. I owe my sincere and grateful thanks to the external guide of KMML,Chavara, Mr. Kochoommen (Asst. Personal Officer) for guiding me to thisproject work. Last but not the least I thank all my faculty members, all employeesand managers of KMML, my parents and my friends who have been a sourceof inspiration and also helped me throughout this project. Jijo Thomas
DECLARATION I, Jijo Thomas hereby declare that the project work entitled AnOrganisation Study at Kerala Minerals and Metals Ltd. is a record oforiginal work done by me under the guidance of Internal Guide, Mr.Sasikumar. I also confirm that this project study has not been submittedbefore.
CERTIFICATION This is to certify that Mr. Jijo Thomas, Register No………….….. hasundertaken an organizational study on Kerala Minerals and Metals Limited,Chavara and this report is the result of original work done by the candidate. This project report is partial fulfilment of the requirements for theaward of the Degree of Master of Business Administration (M.B.A.) from theMahatma Gandhi University, Kottayam. Signed by Counter Signed by Project Guide Counter Coordinator
LIST OF CONTENTSSl.No. Title Page No. 1. Introduction to the study 2. Aim, Objective of the Study 3. Methodology 4. Scope of the Study 5. Limitations of the Study 6. Industry Profile 7. Certifications 8. KMML Layout 9. Company Profile 10. Product Profile 11. Vision, Mission, Objectives 12. Organization Structure 13. Functional Departments Personnel and Administration Department Marketing Department Finance Department Production Department Maintenance Department Materials Department Data Processing Department Fire and Safety Department Technical Department Research and Development Department Project 14. SWOT Analysis 15. Findings 16. Conclusion 17. Bibliography 18. Appendix
LIST OF CHARTS AND FIGURESSl.No. Title Page No.1. Organisation Structure of KMML2. Organization Chart of Personnel Department3. Organization Chart of Marketing Department4. Organization Chart of Finance Department5. Profit & Loss Account6. Balance Sheet7. Organization chart of production Department8. Basic Processing Steps9. Organization Chart of Maintenance Department10. Organization Chart of materials Department11. Organization Chart of data processing department12. Organization Chart of fire and safety Department13. Organization Chart of technical Department14. Organization Chart of Research & Development15. Organization Chart of project Department
AN INTRODUCTION TO THE STUDY Organizations play major role all over the world different organizationmeet people needs and provides them with product, service, or both. Due toglobalization, the world has become a global village. This has very much helpedpeople to get their needs. Different firm play different role and has its ownimportance. For my study, I have chosen Kerala Minerals And Metals Limited. Itis a well-reputed company fully owned by the State Government of Kerala. The Company has indulged in the manufacturing of world class TitaniumDioxide. It has been ranked among the top ten competitions in the worldproducing its own product. In this study, I will be covering the organization as awhole briefly. Hope I succeed and fulfill the study that I began with. KMML is a world class producer of mineral sand based value addedproducts. In India, KMML is the only producer and distributor of rutile gradeTi02. The company enjoys monopoly and faces no competition in India. But inforeign markets, the company faces competition from a number of companies.
AIM OF THE STUDY Our 30 days organization study is aimed to get an industrial exposure and tounderstand the functioning of the organization in real life. It is intended to helpstudents to link the corporate management practices in an organization with thetheoryOBJECTIVES OF THE STUDY 1) To acquire knowledge about the company has learnt. 2) To get the knowledge about the functional and managerial aspects of KMML. 3) To brief study of KMML. 4) To get the practical knowledge of KMML. 5) To analyze the functional position of KMML.METHODOLOGY There are 3 steps involved in an organization study. It can be described asfollows 1) The first step is the collection of all available information from various primary and secondary data sources. Collecting information from manuals, reports, articles etc, which were provided by KMML regarding the origin, facilities available in the company and a brief on its activities and functions. 2) Interviewing departmental heads and other staff for understanding the activities of each department, structure and the roles played by each of them. 3) Visiting the operational sites of various departments. The main aim is to obtain a physical feel of the departments and observe the activities performed by it, and its important to the whole organization.
That is the study has been conducted using primary and secondary data.The data were collected with the help of questionnaire; interview and observation.Two sources are used for collection of data. Two sources of data are1) Primary sources of data collection1) Secondary sources of data collectionPrimary data collections are • Observation • Personal interviewSecondary data are collected from • Company brochure • Company’s website • Business MagazinesSCOPE OF THE STUDY For the organizational study I have chosen Kerala Minerals and MetalsLimited, It is a well-reputed public sector undertaking in Kerala State. In thisstudy, I will be covering the organization as whole briefly. From theorganizational study it has provided the first hand knowledge regarding thefunctioning of KMML and gets more knowledge about its Marketing, Financingand all over the functional areas of the organization. The organizational studyprogram has been highly beneficial to me. Through this study " 1) The student shall get familiarized with the structure, systems, procedure and functioning of an organization. 2) The student shall encounter practical situations which require immediate solutions by relating numerous theories and concepts into practice.
3) Students can come with unbiased and impartial suggestions and recommendations.LIMITATIONS OF THE STUDY 1) The study was conducted within a period of stipulated time. 2) The workers were busy with their work and had little time available for an interview or conversation. 3) The managers time availability for discussion were limited and frequently interrupted due to official commitments.
INDUSTRY PROFILE The world is rapidly shrinking with the advent of communication,transportation and financial flows product development in one Industry arefinding enthusiastic acceptance in other industry. As the Industry, which ismanufacturing Industry, product definitely depends on the end user Industries. Industry plays a significant sole in every firm. Industrial development hasbeen given on greater importance in Indian planning on account of Industrialdevelopment. Industry is necessary in productivity, employment, national Incomeand rate of capital formation in India witnessed large scale diversification India. Now India occupies tenth place among the industrially developed countriesin the world.TITANIUM DIOXIDE INDUSTRY IN INDIA The Indian reserves of illmenite and rutile is expected to the around 60million tones. The most important sources of illmenite in India are beach sands ofsouth. Maharashtra, Orissa, Tamilnadu and in Kerala is around 45 million tones.There are about 20 million tones reserves in Orissa. This information threw light in to the possibilities of new manufactures andcompetitions in Titanium Dioxide pigment Industry in the Indian Market with theincreasing demand for the paints, rubber, plastic and printing inks etc. The arrivalof new manufactures will be more in the near future. This will ultimately results intight competition.
CERTIFICATIONS OF KMML 1) ISO 9001:2000Certificate from Bureau Veritas Quality International (BVQI)and holes certification of United Kingdom Accreditations Service (UKAS). TheUnited Kingdom Accreditation Service is the sole national accreditation bodyrecognized by government to assess, against internationally agreed standards of anorganizations that provide certification for testing, inspection and calibrationservices.and accredits certification from ANSI-ASQ National Accreditation Board(ANAB) is the U.S. accreditation body for management systems, ANAB is amember of the International Accreditation Forum and a signatory of the IAFMultilateral Cooperative Arrangements (MCA) , ANAB ensuring accreditedcertificates which are recognized nationally and internationally for good qualitymanagement system. 2) ISO 14001:2004Certificate from Bureau Veritas Quality International (BVQI)and accredits certification of National Accreditation Board for CertificationBodies (NABCB). NABCB is a member of International Accreditation Forum(IAF) having Multilateral Recognition Arrangement (MLA) to certify ISO 14001- Environmental Management System.and holes certification of United Kingdom Accreditations Service (UKAS). TheUnited Kingdom Accreditation Service is the sole national accreditation bodyrecognized by government to assess, against internationally agreed standards of anorganizations that provide certification for testing, inspection and calibrationservices.
3) OHSAS 18001:1999Certificate from Bureau Veritas Quality International (BVQI)The Occupational Health and Safety Assessment Series (OHSAS) specificationgives requirements for an occupational health and safety (OH&S) managementsystem, to enable an organization to control its OH&S risks and improve itsperformance. National and International awards conferred on KMML National award for R & D efforts industry for the best research and development efforts by department of Science and Technology(1992) FACT MKK NAIR Memorial productivity Award 1993-94,94-95 for the best productivity performance by Kerala State Productivity Council Energy Conservation Award 1999in appreciation for outstanding achievements towards energy conservation and management in the category of large scale industries FACT MKK NAIR Memorial productivity Award 2001-02 for second in productivity performance by Kerala State Productivity Council 2001 FACT MKK NAIR memorial productivity Award 1999-2000,2000-01 for first in productivity performance(Large Organization) by Kerala State Productivity Council Energy Conservation Award 2001 for conservation and management in the category of large scale industries by Energy management centre Kerala 2001 Award for Revenue performance 2003 for the best performance by central excise, customs Kollam Division 2003 Marketing campaign Award 2003 for best marketing campaign by Asia pacific coating 2003
International gold medal for the Quality of the product and efficiency of the company by Forum Kerala Lumpur Global Rating UK 2003 Special Export Award for export performance by chemicals and Allied Export Promotion Council (CAPEXIL) sponsored by ministry of Commerce Government of India 2002-03EMPLOYEE STRENGTH There are about 210 officers and 1122 workmen in KMML. The totalstrength is 1332.FUTURE PLAN The company is studying the possibility of the productivity of moreeconomic titanium metal sheets. Recently, researchers established that theAeronautic Industry could use Titanium metal instead of Aluminium alloy orDuraluminium coverings. The company is in the process of expansion and thetarget expected is approximately as shown be1ow: 1. A new Mineral Separation Plant of capacity 2 lakhs tones per year illmenite 2. A new Synthetic Rutile Plant of capacity 1.3 lakhs tones per year 3. A new 100 tones per day Oxygen Plant 4. Capacity enhancement of TiO2 pigment plant 1 lakh tones per yearPOLLUTION CONTROL KMML has elaborate Pollution Control system with respect to both water andair pollution. The waste (acid) from illmenite Beneficiation Plant are sent toEffluent Neutralization Plant (ENP). ENP consist of a Primary NeutralizationTank (PNT) and Secondary Neutralization Tank (SNT) where it is treated withcaustic soda solution. The totally neutralized slurry from the SNT is pumped to
50000m3 capacity setting pond provided with impervious clay, polythene lining atbottom side where the solids are settled. The dye solution from setting pond of25000m3 capacity where the balance solids are allowed to settle. Then cleanwater from the polishing pond meeting all specification stipulated by PollutionControl Board authorities is pumped in to the Arabian Sea. All gases from Chlorination, Oxidation, Illmenite Beneficiation Plant andAcid Regeneration Plant are passed through scrubbed water or caustic solution toabsorb the toxic gases diluted with enough fresh air and only let out to theatmosphere through tall slacks.
KMML Plant Lay Out NH. 47Administrative Block PlantsFINANCE DEPARTMENT SUBSTATION CANTEENMARKETING DEPARTMENT OXYGEN PLANTPERSONAL DEPARTMENT PPP UNIT PPP UNIT 100/200 400/500MATERIAL DEPARTMENT PPP UNIT PPP UNIT ARP IBP 300 400/500 EMERGENCY BLOCK MAINTENANCE SHOP ERS IRSRAW ILLMENITE GODOWN CENTRAL MECHANICAL REPAIR BLOCK STORE AIR COMPRESSING LAB BLOCK COAL BOILER YARD PLANT
COMPANY PROFILE Kerala is blessed with rich and extensive mineral deposits. This depositsstretch along the sea cost between Neendakara and Kayamkulam, a trackgenerally known as Chavara coast. This deposits stretch up to a distance of 18 Kmalong the coastal strip and having a depth of 8m. The dark sands of Travancorecoast are rich in mineral deposits as Monazite, I1lmenite, Rutile, Zircon etc. The company is located at Sankaramangalam near Chavara, Kollam acoastal town 85 km north of Thiruvananthapuram. KMML is situated on the sideof NH-47 to about 285 acres in area. KMML has a worldwide reputation, asocially responsible company with an eco-friendly image. The company derivedstrength from its dedicated manpower and customer organization. KMML is fullyowned Kerala Government Enterprise. There are about 2000 employees in thecompany at present that helps KMML to grow.History of KMML In the earliest periods of 19th century, precisely in 1909 a Germanscientist named Mr. Schaumberg happened to discover traces of I1lmanite andmonazite in the black beach sands of Chavara coast in the Kerala state of India.Schaumberg who was then working for an English firm got the sand exported toEngland. At that time there was great demand for monazite because of its wideapplication in the mantle making of gas lights. Continued efforts of German led tothe discovery of other minerals such as Rutile, Zircon, Silmanite etc in largevolume in the sand of Chavara coast between Neendakara and Kayamkulam.. Thediscovery of monazite was quite accidental. Eventhough the German laidfoundation for a mineral separation plant at Chavara its activities were curtained
by World War 2. The first full fledged mineral separation plant in Chavara was establishedby a private entrepreneur in 1932 as F. X. Pereira and Sons (Travancore) Pvt.Ltd. They were involved in mining and separating mineral sands into variousconstituents like Illmanite, Monazite, Rutile, Zircon, Leucoxene etc. During 1956this concern was taken over by the state government and was placed under thecontrol of its industries department. The unit was converted as a limited companywith effect from 1.4.1972 in the name of "The Kerala Minerals and Metals Ltd". Initially the company had only one unit known as Mineral SeparationPlant. In 1974 the company received intent for the production of Titaniumdioxide (Ti02) pigment using Chloride process. In 1976 KMML registered its 2ndunit known as Titanium dioxide Pigment Plant. Its construction started only in1979 and total capital cost was Rs.144 Crores. The plant was commissioned inDecember 1984. KMML became the first and only Integrated Titanium dioxideplant in the world. Even though KMML was commissioned in 1984 it was not able to operateefficiently due to technical problems. Due to these problems the company has tosuffer an accumulated loss of more than the capital investment over a period of 8years. In the above circumstances it was in 1991 that the entire personnel ofKMML from top management to down to the lowest workers started to thinkindividually and collectively about the requirement of a Turn Around. A strategywas planed and implemented with the wholehearted support of the workforceduring the period 1991-1993.1t started to yield results and the Company attainedthe break even level by 1993.From 1993-1994 onwards, the company started tomake profits and wiped out the entire accumulated loss within a few years andrepaid the long term loans. Thereafter, it is the story of success and growth.
INCORPORATION OF KERALA MINERALS AND METALS LIMITED Kerala is a land enriched with heavy mineral deposit. This richness evolvedthe formation of the company Kerala Minerals and Metals Limited (KMML). It was all way back in 1909, when a German Chemist namelyDr. Schaumberg noticed some brown sand particles sticking with coir exportedfrom India. He realized that the particles present were Monazite leading to thediscovery of vast deposits of Monazite in the black beach sands ofManavalakuriclll in the east Travancore state. Late the Geological Survey of Indiaestablished the occurrence of Monazite and other earth minerals like limonite,Rutile, Leucoxene, Sillimanite and Zircon. Miss. F X Pereira & Sons (Travancore) Private Limited were the pioneerswho established the first full fledged Mineral Separation industry in Chavara areaway back in 1932 using the dry separation process. Gradually the company founditself in financial crisis and in January 1956, the Kerala State Government tookover the company and continued under name F .X.P Minerals in 1972 theGovernment renamed the name of the company as. The Kerala Minerals andMetals Limited (KMML). At present KMML consists of two units, the MineralSeparation Plant and the Titanium Dioxide Pigment Plant.TECHNICAL COLLABORATION The KMML entered in to technical collaboration with threemultinational corporations M/s. Kers MC Gee Chemical Corporation of USA.M/s. Benedict Corporation of America. M/s. Woodall Dukham of UK respectivelyfor the above. The Metallurgical of Engineering Consultants India Limited(MECON) a Government of India Undertaking did the detailed engineering
ORGANIZATION STRUCTURE MANAGING DIRECTORGM PRODUCTION DGM P&A GM GM FINANCE MARKETINGMAINTENANCE MANAGER AGM AGM MANAGER MANAGER WELFARE DEPUTY DEPUTY MANAGER ASST MANAGER MANAGER PERSONNEL OFFICER PROCESS SENIOR EMPLOYEES ACCOUNTANT EMPLOYEES EMPLOYEES ASST TO SENIOR ACCOUNTANT MARKETING PURCHASIN EMPLOYEES OF FIRM G OF FIRM ACCOUNTANT (DOMESTIC) GRADE 1 ASST TYPIST PEON GRADE ACCOUNTANT GRADE 2 EMPLOYEES EMPLOYEES
DEPARTMENTAL STUDY Like any other public sector undertaking KMML has separate departmentsand separate executive heads for each department Departments are based on thefunctional basis. Each department specializes in its own area of operation. Thevarious departments in the KMML are:- 1) Personnel & Administration 2) Marketing 3) Finance 4) Production 5) Maintenance 6) Materials 7) Data processing 8) Fire & Safety 9) Technical 10)Research and development Department 11)Project
1) PERSONAL AND ADMINISTRATIVE DEPARTMENT Of all the factors of productions, man is by for the most important. It is a matterof common knowledge that every business organization depends for its effectivefunctioning not so much on its material or financial Resources as on its pool of able andwilling Human Resources. M J Jueius defines “personnel management as the field of management whichhas to do with planning, organizing, controlling various operative activities of procuring,developing, maintaining and utilizing a labour force in order that the objectives andinterest for which the company is established are attained as effectively andeconomically as possible and the objectives and interest of all levels of personnel andcommunity are served to the highest degree”.
Workman ClassificationPermanent employees There are about 215 officers and 960 non technical staffs in the TiO2pigment plant as permanent employees.Employees engaged on contract basis The employees worked on contract for a limited period of time on termsand conditions fixed by the company. They are mainly engaged throughemployment exchange.Temporary or seasonal Worker These workers are employed when the workload is more and seasonaldemand is high. They are dispersed when the work is over.Casual Labour They are employed from people who lost their land due to acquisition byKMML. They are engaged first as casual workers and then absorbed as permanentemployees when vacancy arises.Apprentice Apprentice work for a period of 1 year as a part of training program as perApprentice Act.
Certain Recruitment Sourceso Internal Searcho Advertisemento Employees Recommendationso Employment Agencieso Temporary Help Serviceo Schools, College and Universitieso Professional Organizationso Casual or unsolicited Applicantso Other Sources
Recruitment procedure in KMML1. The employment exchange compulsory notification of vacancies Act.1959 stipulates that every establishment in public sector shall before filling vacancy in any employment in the establishment in public sector should notify the vacancies to the concerned employment exchanges any failure to notify such vacancy is an offence punishable under that Act. Therefore the chief executive of public establishments shall notify vacancies to comply with the Act.2. Recruitment to managerial and professional posts carrying a starting basic salary excluding DA and other allowances of Rs 15000 / per month and above shall be made by selection from the applications received through sufficient advertisement in newspapers. The candidate sponsored by the employment exchange shall be selected from the applications received through sufficient advertisement in newspapers. The candidate sponsored by the employment exchange shall also be considered for selection .If the details are furnished by the employment exchange, call letters are issued to the short listed candidates for the interview or test.3. Selection to all other post outside the preview of public service commission shall be made from among the candidate sponsored by employment exchange. In this case filling up of vacancies by generating applications through advertisements in newspapers should be attempted only after obtaining non availability certificates from employment exchange.
4. Recruitment to vacancies should be made by committees set up by board of directors with not less than 3 members and atleast 1 of them being government representative.5. In respect of direct recruitment the principles of reservations as applicable to government appointments should be adhered to the principles of communal rotations and laid down in Rule 15 to 17 of the Kerala subordinate service Rules part II shall be followed.6. No preferences shall be given to the apprentice of the undertaking while making recruitment against permanent vacancies.7. The practice of hiring persons on daily wages to man posts, which can be called through employment exchange, shall be discontinued. All existing vacancies should be anticipated and actions should be taken to fill them. All amounts spent on hiring daily wage employee shall be treated as irregular expenditure, which could be recovered from the appointing authorities.8. The instructions already issued by the government to these extend they are contrary to the foregoing procedure will be cancelled from the date of issue of the circulars.
Working Hours The company works on shift bases. There are 3 shifts for plant and generalshift for Administration. The timing is as follows: A shift 6 am to 2 pm B shift 2pm to 10 pm C shift 10 pm to 6 am General 9 am to 5 pmStipulations An employee has to report for duty at 9 am except the employee worked inshifting times. He may enter the company after one hour and will not be allowedto enter after his grace time. An employee entering after the grace time may losses15 minutes salary / wage for the first 15 minutes and between 16 to 30 minuteslate he losses 30 minutes salary and between 31 min to 60 min late he losses onehour salary or wage. This is closely watched by the time officer.
Welfare Activities The provision regarding the Factories Act 1948 require the appointment ofa Fulltime Labour Welfare officer in every concern which employs 500 or moreemployees. In KMML personnel and Administration department is entrustedwhich covers the intellectual, physical, more and economic betterment of workers.Aims of Labour Welfare Functions in KMML Labour welfare facilities have the following aims:- To overcome the monetary frustrations of the employees To provide opportunities for development of individual talents To provide assistance in solving personal and family problems of employees To offer facilities for the improvement of health of employees Create conditions where employees are able to develop a broader vision of life matters.
Bonus Employees who get more than Rs.4500 per month are eligible for bonus.Almost all employees of KMML get it. Provident Fund PF was first introduced 1956 and administered by the trust. Here both theemployer and employee have to contribute 12 percent each of the basic pay,where 8.1 / 3% is transferred to pension fund. Gratuity Minimum amount payable as gratuity is Rs. 4500. Employees havingcontinuous service of 5 years are eligible for gratuity calculated as follows Gratuity = Basic Pay + Dearness Allowance * 15 * Number of years / 26 ESI All the employees working here including casual and contract whose salarydoes not exceed Rs 4500 per month are covered under this Act. As and whenemployees are registered with ESI, they are entitled to get following benefits fromESI Sickness benefit Disable benefit Dependent benefit Maternity Funeral benefit
Rehabilitation ALLOWANCES The allowances provided by me company for its employees as followersHouse rent allowance (HRA) Workmen of me company shall be titled to HRA a 10 of me the basic pay effective from 11-1-1997.Conveyance Allowance (CA) Upto Rs 100 given as Conveyance Allowance as per the memorandum of agreement.- Shift allowance Employers wording in A, B, C shift are paid Rs 300 pm as shift allowance- Washing allowance Washing allowance is Rs 60 pm. A least 5 days attendance is necessary for this.- Cash tending allowance Rs 150- 180 pm is paid as cash handling allowance to employees who look after the duties of the cashier- Milk allowance Workers haling 15 days of attendance are eligible for milk allowance amounting up to Rs 90 pm- Stitching allowance
Employees are given stitching allowance as follows uniform for gents Rs 180. Over coast Rs 85 For bounce of upon Rs 40 - Chlorine tanker duty allowance Rs 120-160 Rs paid as his allowance as this allowance - Acting allowance All workmen in titanium dioxide pigment ………..of the company work in the ‘c’ shift will get night shift allowance of Rs 20/-. - Education Allowances Education allowance are granted to 2 children Up to S.S.L.C = Rs 80pm S.S.L.C = Rs 90 pm Plus two = Rs 100 pm Degree = Rs 120 pm Professional course = Rs 140 pm - Attendance Allowance Employees for offering in attendance of 80-90% are given a bounce of Rs100 greater than 90 are given a bounce of Rs 110 .100 % attendance are given 1day wage and DA (Rs 200) Employee PF and pension scheme In KMML the employee in T 102 pigment unit are covered by theemployee pf miscellaneous provision act 1992. But the employees in the MSU arenot covered by this Act.12% of basic part and DA will be recovered from thesalary an equal amount is contributed by the company in their account 8.33 % of
the scheme is permitted to pension scheme and remaining 3.6% is permitted toemployee’s provident fund. Housing loans In KMML employees will get housing loan up to an amount of Rs4,00,000 for construction of a new house and for extension of existion of existinghouse Rs 2,00,000 Vehicle loan The maximum amount by loan admissible for purchase of scooter motorcycle to workmen in KMML will be Rs 50000.intrest will be changed of theexisting rate. Non-financial incentives in KMML Financial incentives are used to motivate employee for higher works .however individuals have various needs, which they want to satisfy while working in the organization .people at comparatively higher level of managerial hierarchy attach more important to socio-psychological needs, which cannot be satisfied by money alone. The following are me important non-financial infective in KMML LEAVEAnnual leave: - In KMML employers are allowed 26 days by annual leave for everycompleted calendar year by service,Sick leave Employers of KMML are eligible for 14 days sick leave every year andhalf pay sick leave.
Casual leave Casual leave of 14days for a calendar year will be allowed to allemployers, speed leave with wages, as presently given to heart patients are extentended to these workers shuffling from cancer, those undergoing kidneytransplantation and brain disease .those workers who undergoes sterilizationoperation will eligible for all benefits available to the safe government employersdoing sterilization operation. TRADE UNIONThere are 4 trade union in KMML 1. Titanium complex employee unions (UTUC RSP CB) 2. Titanium complex employee congress (INTUC) 3. KMM titanium complex employee union (CITU) 4. KMM titanium complex employee union (STU (MUSLIUM LEAUGE)
WAGE STRUCTURE Existing scale of Revised scaleSl no Category of employee pay (Rs) 1 Workers grade 3800-80-4040-85- 4380-85-465-110- employees, sweeper, 4465-110-5015- 5015-135-5825- scavengers 135-5825 150-6725 2 Security guards and 4380-85-465-110- 4795-110-5015- peons 5015-135-5825- 135-5825-150- 150-6725 7325-170-9025 3 Bluer pink operator 4795-110-5015- 5150-135-5825- record keeper and store 135-5825-150- 150-7325-170- attitude 7325-170-9025 9025-200-9223 4 Fireman drivers 5150-135-5825- 5420-135-5825- 150-7325-170- 150-7325-170- 9025-200-9223 9025-200-9625 5 Operation grade C with 5420-135-5825- 5690-135-5825- typist, steno, 150-7325-170- 150-7325-170- accountant, assistant 9025-200-9625 9025-200-10025 canteen super wiser 6 Operators grade B 5690-135-5825- 6275-150-7325- receptionist, male, 150-7325-170- 170-9025-200- nurse, etc 9025-200-10025 10825-215-11470 7 Senior grade assistant 6275-150-7325- 7375-200-9025- operation grade A 170-9025-200- 200-10350-250- canteen supervisors, 10825-215-11470 operational technical 11135-250-11995
2) MARKETING DEPARTMENT "Marketing is a social and managerial process by which individuals andgroups obtain what they need and want through creating and exchanging productsand value with others"---------Philip Kotler.ABOUT KMML MARKETING KMML have monopolistic in Titanium Dioxide (TiO2) pigment industry.KMML is a public limited company that stands as a leader in production of TiO2.The company has a large number of customers from all over the world and outside. The marketing department is engaged in selling of the companys product.There is no separate department for sales and marketing management alsoperform these functions. The marketing section keeps detailed report aboutcustomers product, product group control, dispatch and payment. Products of KMML always maintain very high standard perfection,achieving technical excellence in every phase of production to offer a wide rangeof products for quality conscious customers. At KMML, one factor comes before everything else is customers andKMML go out of their way to ensure customers satisfaction. A team of motivatedmarketing experts, who make it their business to find out the firms views,highlights customers consciousness. Maintaining close contacts, they areperfectly aware of customers needs and are instrumental in development of newproducts at price and offering.
MARKETING MIXPRODUCT The major products of KMML is Titanium Dioxide Ti02 (Rutile) pigment,which is extensively, used as the main raw material by several industries such aspaint, plastic, rubber, printing, inks etc.PRODUCT PROFILE Titanium Tetra Chloride (synonym-Tickle) is produced as an intermediaryproduct in the production of rutile grade titanium dioxide pigment. Titanium TetraChloride is extensively -used in the manufacture of Titanium dioxide pigment,Titanium sponge or metal. At present KMML produce six grades of Titanium Dioxide and they are:I) Kemox RC 800:- It is recommended for printing inks, high gloss coating, industrial coating, low abrasivity pigment for letterpress gravure polyamides and exterior application where maximum chalk resistance is not required.2) Kemox RC-800 PG:- It finds application in plastic requiring a blue white high dispersion Ti02. Other areas of application are powder coating, polyethylene films and vinyl sheet goods. It is used in most other common plastic or rubber floor like applications.3) Kemox Rc-822:- It is recommended for interior and exterior enamels and lacquers for industrial and architectural purpose.4) Kemox RC - 813:- It can be used in both interior and exterior low gloss and flat paints and coating- both solvent and water based. It finds application in interior flat wall paints, exterior low gloss or flat house paints, low gloss maintenance pints, low gloss or flat chemical coating etc. Kemox RC-813 can be described as a universal pigment for all coatings formulated at higher percentage pigment volume concentrations.
5) Kemox RC-802: It is recommended for both interior and exterior applications. This is also recommended for architectural and industrial paints-both solvent and water based.6) Kemox RC-808: It is recommended for automotive, industrial and architectural finishes. It is also recommended for coil coating, radiation cured finishes; emulsion paint systems powder coating, water borne coating and printing inks. It can also be used for letterpress gravure, polyamides and other inks where low abrasive pigments are required.PRICE Based on the variation in the market, the price of Ti02 is fixed by KMML.The price is fixed by Chairman and Finance Secretary of the Government ofKerala. The price is periodically revised due to market fluctuation. Selling price of all grades ofTiO2 (Rutile Grade Pigment) = Rs. 194000 + 16% Excise duty + 4 % CSTPROMOTION KMML is a sole manufacture of rutile grade titanium in India. Hence thereis no much competition in the world market. Advertisement promotes thecompany product.ADVERTISEMENT Advertisement are given in trade journals, industrial news, magazine usedby paying manufactures association, ink producer association etc. Advertisementsare also given in newspapers while appointing stockiest. KMML subscribes "Paint India" the leading publication of the paintindustry and also "Mineral Market Reporter" which provides valuable informationabout Ti02 at national and international level. The company also providesdiscount scheme for its customers.
PLACE OF DISTRIBUTION Marketing channel decisions are among the most important decision thatmanagement faces. A companys channel decision directly effects every othermarketing decision. The firms sales force and advertising decision depends onhow much persuasion, training and motivation the dealer need.DISTRIBUTION SYSTEM In KMML distribution is divided into two major categories: I) Direct Supply:- Direct Supply to the actual customers who require sevenmetric tones or more at a time. By this policy KMML, have estimated themiddlemen and it is easily adapted to any circumstances. 2) Supply through Stockiest:- Supplies to small sectors are done throughstockiest appointed by the company in all major cities. Company fixes prices forits products and the stockiest are responsible to see the pelts at fixed once. All thegrades of Ti02 pigment produced in KMML come under the category of industrialgoods; Ti02 is mainly used in paint industry, textile industry, printing ink industryetc. The total customers can be divided in to three types: Major Customers Stockiest Other CustomersCUSTOMERS Paint industry contribute large customers of Ti02-, other largest customersinclude such industrial as paper, plastic, polyester. The bulk of the products inKMML are consumed by industrial namely: Asian Paints Hindustan Latex and Revin
Shalimar Paint Corlass Nerolac Jenson and Nicholson Sanderson Chemicals Mega Meditex Camlin Plastic Chemix Industries Berger Paints Rajdoot PaintsSALES PROCEDURE The sales section obtains the order from the customer; receives the pigmentin the form of cheque or DD, dispatches the quantity and send invoice to FinancialDepartment.MAJOR COMPETITORS The company has a monopolistic nature in TiO2 pigment industry in India.The company has some competitors in the world market.The main competitors in the world market are: Dupont (USA) Ishihara (Japan) Hoitex (USA) Millennium (Germany) Henduk (Seoul, Korea)
Flectha Titanium Products (New Zealand) Tofins (Netherlands)EXPORT MARKET IN KMML Even through KMML faces stiff competitors from multinational giants,KMML receives a number of export orders through e-mail, fax and throughcorrespondence from customers abroad. KMML enjoys good reputation forquality pigment in the international market. The company is exporting its productsin Korea, South Africa, Sri Lanka, Turkey, Dubai, China, Mauritius, UK andPhilippine. The company is now exporting 30% of their production. It has plans toraise this to 50% by 2013.MARKETING INFORMATION SYSTEM KMML is a member of chemical and allied products export council.Bulletins of chemical are regularly received by KMML and used to obtain thelatest trend of Titanium Dioxide demand for various customers both indigenousforeign. KMML subscribes "Paint India" the leading publication of paint industryand also "Mineral Marketing Reporter" which provides valuable informationabout Ti02 at national and international level. KMML uses the services rendered by "India Marketing Bureau" which is amarketing research as advised by KMML. For this KMML has to pay feesannually for their research studies.HANDLING CUSTOMER COMPLAINTS The complaints received from the customers are registered by KMML, andacknowledgment sent to customers. The details of the complaints are entered inthe customer complaints register. The particular about the progress of
investigation and nature of disposition are updated in the customer care register.MARKETING FUNCTIONS OF KMMLFUNCTIONS OF EXCHANGEI) Buying and Assembling:- The extraction of raw materials of producing finishedtitanium dioxide is done at Chavara where the factory is situated. Only certainquantities of chemical and other raw materials is purchased from other units forthe production of titanium dioxide. Assembling of titanium dioxide is done at thefactory godown.2) Packing:- Titanium dioxide is packed in 25Kg net weight in laminated multiwall paper bags. After the chemical process is over, the materials is micronized,the pigment is collected in bagging. The material is taken to a conveyor, here twopeoples are engaged in bagging and four are in stocking. It is then taken andstored in pigment godown. 50 bags are packed in one pallet weighting 1.25mt.3) Selling:- KMML sells titanium dioxide directly to its consumers and itsstockiest in bulk. The stockiest are appointed by fulfilling certain rules andregulation of the company.Functions of physical supply Despatching: - After the order from stockiest and consumers, have been received, the marketing department arranges the execution of orders by way of dispatch. The mode of payment must be in the form of Demand Draft payable at any scheduled bank at Kollam.
DOCUMENTS AND REGISTERS TO BE PREPARED FOR DESPATCHING GOODSa) Order Register:- Particulars of order received is entered in a registered called order register. It shows the date, name of the party, grading of the products, payment of cash and transport mode.b) Delivery note:- This note is prepared before the goods are dispatched. It has the KGST Rules 1963.c) Delivery Chellan:- It is another important document which is prepared by the dispatch section. It contains the details of goods, which are dispatched, name of carrier, L.R.No, excise, gate pass note and date of dispatch.d) Invoice:- Invoice is prepared at finance department and submitted to the marketing department. It shows the name of the customer; date, grades of goods, quantity purchase, price, destination, truck no etc.e) Gate Pass:- It is prepared by the dispatch section. The company gate pass is submitted before the security officer to take goods out of the factory premises.f) Transportation and Insurance: Transportation and insurance are to be arranged by the customer. The customer shall nominate their approved transporter.DECLARATION UNDER KGST RULES 1963 FORM 27B This is another document, which has to be filed up and made ready beforedispatching the goods. The form is addressed to the officer in charge of check postand it must be signed.MARKETING FACILITATING FUNCTION
1) Financing:- For carrying out marketing functions, KMML does not require financial assistance in form at loans. The customers will have to make payment in advance.2) Risk Bearing:- Marketing of titanium dioxide pigment involves a number of risks. Returning the goods by customer or damages at the time at storing in the factory go down covers the risk factor. All the above risks are reduced to a great extend with the help of insurance.PRODUCTION AND SALES The commercial production started in 1985. Following chart will show theproduction and sales of titanium dioxide in past years. Year Production in m/ton Sales in m/ton 2004-05 18042.000 16150.475 2005-06 15377.775 18011.500 2006-07 10115.650 6050.450 2007-08 14486.550 14707.550 2008-09 19317.000 21526.850 2009-10 21816.000 23501.000 2010-11 23521.01 25230.000 2011-12 24251.610 25851.000 MARKET RESEARCH ACTIVITIES OF KMMLMAIN OBJECTIVES1) To find out the general impression of KMML products in the tit dioxide marketing of India.2) To ascertain whether demand exists in the Indian market. If we under the
proposed expansion of 6000 million tonnes.3) Equivalent grade needed in market.New product development A new hydrophobic plastic grade pigment RC804 was developed by theeffort of inhouse R and D of our company. The trial production of the same,approximately 100 times was taken successfully. The sample has been tested atCIPET Hyderabad and found to be comparable to competitive international gradepigment. Free samples were given to customers for their evaluation after whichbulk orders were received and the entire material could be sold out.
ORGANIZATION CHART OF FINANCE DEPARTMENT GENERAL MANAGER (FINANCE)MANAGER (FINANCE) MANAGER (INTERNAL AUDIT) DEPUTY MANAGER INTERNAL AUDIT (FINANCE) ASSISTANT A/C A/C A/C A/C A/C A/COFFICE OFFICE OFFICE OFFICE OFFICER OFFICERR CASH R R TAX R BILLS SALES SALARY BUDGET TAX ASST ASST ASST ASST ASST ASST A/C A/C A/C A/C A/C A/COFFICE OFFICE OFFICE OFFICE OFFICE OFFICE R R R R R RACCOUNTA ACCOUNTA ACCOUNTA ACCOUNTA ACCOUNTA ACCOUNTA NT NT NT NT NT NTNT
3) FINANCE DEPARTMENT Finance is the lifeblood of every business. This is one of the mostimportant departments. In KMML a well organized finance department isfunctioning. The finance position of the company can be understood by BalanceSheet and Profit and Loss Account, prepared budget report according to thecompanys goal is also an important function of the finance department.Accounting Policy of KMML 1) Convention The final statements are prepared under the historical cost convention inaccordance with applicable accounting standard that was relevant topresentational requirement of the Companies Act 1956. 2) Fixed Assets Fixed assets are stated at cost of acquisition and additional if any, lessaccumulated depreciation, is provided at rates and methods prescribed in theschedule XIV of the Companies Act on straight line method in respect of plantand machinery and railway sliding belonging to TiO2 pigment unit. And writtendown value method in respect of all the asset of the company. The depreciation iscalculated on the basis of Companies Act and for income tax audit it is added tothe profit and recalculated as per the audit rules. 3) Excise duty Excise duty on manufactured is accounted for as and when goods. Aredispatched is accordingly no provisions is made in respect of duty due on goodsmanufactured, but not dispatched nor included in valuation of stock.
4) Gratuity Gratuity liability and leave is accounted on the basis of actuarial valuation. 5) Inventory System Work-in-progress is valued at the cost and stock of raw materials,chemicals, fuel and stores are valued at weighted average cost on monthly basis.ADJUSTMENT PER TRAINING TO EARLY YEARS Adjustment arising out of errors or omission in the financial statement ofearlier years are prior period item, if the amount involves is Rs. 1,00,000/- ormore in each case.FUNCTIONS OF ACCOUNTING SECTION OR FINANCE DEPARTMENT The company maintains a clear and perfect accounting system. The mainactivity of the Finance Department is Working Capital Management. Preparationof Fund statement, cash Flow Statement, Balance Sheet. Profit and Loss Accountetc are also the activities of Financial Department. Secretarial work relating toBoard comes under the review of the Finance Department. Most of the activitiescarried out by the Finance Department are pertaining to long term and ,short termrequirements of the operation, closing purchase bill, maintaining the account ofcontractors, subcontractors, income tax deduction, salary discrepancy, dealingwith the financial institutions with imports and exports are also the functions ofthe Financial Department. The Functions are:1) Purchase are Recorded and Analyzed The Finance Department of the company keeps the accounts of purchase ofspare parts, chemicals etc and accounting entries are made in the books ofaccounts of the company on day to day basis, on the basis of bills and supportingvouchers of each item. Each voucher is essentially numbered to avoiddiscrepancy.
The company makes only miscellaneous purchase, as the main rawmaterial is mineral sand. The department analyses the details of purchasesafterwards.2) Salary Section and Pay Division The main function of the department is preparation and disbursement ofsalary of officers, members of office staff and workers. The department keepssalary register pertaining to each of the above sections, which facilitates chargesin salary due to granting of annual increments and deduction due from the salary.The disbursing of salary is crediting the amount to the respective bank account ofthe employee. The department is sending a detailed list of salaries; they havearranged an A TM counter of ICICI Bank in the company compound. Certainemployees are paid by cheque. The department is maintaining sub ledgers fordeductions made in the salary such as PF, Insurance Premium Advance, IncomeTax etc. Another important function is computation of income Tax. Its deductionsand prompt remittance to IT Department.3) Sales and Revenue Accountine: The department is calculating and paying sales tax and central excise dutyto the concerned Government every year. The Government is earning a totalincome of Rs.44 crores and Rs.14 crores by way of excise duty and sales tax dutyfrom the company.4) Cash and Bank Transactions The department does all the matters relating to the day-to-day cashtransactions. They receive and make payment for purchase and sales. Thecompany is allowed to collect cash up to the limit of Rs.20000/- is carried out bycheque or DD as per direction of the Tax Authority.5) Major Banks of the Company ICICI, SBI, SBT, Standard Chartered Bank, Canara Bank, Central Bankof India.
6) Costing Annual budget and cost sheet is prepared at the outset of every year and onthe basis of the department fixes the floor price of each product of the company.7) Calculation of Depreciation The department calculates the depreciation. Depreciation is provided onstraight-line method in the case of plant and machinery of Titanium Pigment Unitand written down value method in case of other assets of the company.AUDITING Auditors are appointed by the Government for a period of one Year. Thereexist an external audit and internal audit.Internal Audit:- These are part of the organization. There is an internal auditingsector. They are in the charge of periodical audit.External Audit: They are as follows: Statutory Audit Account Generals Audit Inspection Audit Sales Tax Audit Income Tax Audit Cost Audit The company has registered yet another excellent result during the yearending 31 March 2003. Production of the company for the year 2000-2005 isgiven below. Production Year Ti02 Pigment Minerals (Ilmenite) 2007-08 22815 10823 2008-09 25426 11647 2009-10 25612 17945 2010-11 25921 19138
2011-12 26859 21555 During the year 2011-2012 Company has achieved a record production of25612 MT as against 25426 achieved during the previous year. Similarly, theproduction in the MS unit has also increased from 10823 MT to 17945 MT. Thisis mainly because of adding two more magnetic separators in the old plant.Modernization of MS plant ois nearing completion and when the same iscompleted anticipated production would be 45000 to 50000 MT per annum.FINANCIAL RESULTS Financial results of your company for the year under review and previousyear are given below. 2011-12 2010-11 Particulars (Rs. In lakhs) (Rs. In lakhs) Total grossturn over 32854.54 32304.14 Gross profit before interest and 3079.60 2594.06 depreciation Profit before tax 2243.24 1782.05 Profit after tax and prior period 1121.07 1115.27 adjustment Transfer to general reserve 92.79 0.00 Capital employed 43851.73 43075.03 Internal generation 1885.43 1601.24
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31sT MARCH 2012 As per 2011-2012 2010-011Particular Schedule (Rs. In lakhs) (Rs in Lakh)Income Gross sales 32854.54 32304.14 Less:Excise Duty 3280.05 3337.07 Net Sales 29574.49 28967.07 Other Income 0 1776.80 1483.14Stock Differential P 2959.55 1008.46 Total 34311.02 31458.67EXPENDITURE Manufacturing Expenses K 23859.88 22085.60Payments and Benefits of L 6783.54 6165.78EmployeesAdministrative selling and M 583.00 613.23Other Expenses N 72.00 73.38Interest and Finance Charges R 764.36 738.63Depreciation 2243.24 1782.05Profit Before Tax Q 7.67 8.78Less: Prior Period items 158.50 0.00Doubtful advances 1773.27Profit after Prior Period 2077.07AdjustmentLess: Provision for Current 900.00 625.00TaxationLess: Provision for 116.08 0.18Deferred Tax 56.00 33.00Less: Provision for FBTLess: Prior year adjustments S 0.00 25.48relating to Income tax 1237.15 862.61Profit for the yearProfit & Loss account Balance 23662.66 22800.05Brought Forward 24899.81 23662.66Amount available for 309.33 0.00appropriations 52.57 0.00Proposed Dividend 92.79 0.00Tax on DividendTransfer to Reserves 24445.12 23662.66Surplus Transferred to Balance 39.99 27.89Sheet
Earnings Per Share (Basic and Diluted) Refer Note 27 Of Schedule T Significant Accounting Policy U Notes forming Part of Accounts T BALANCE SHEET AS AT 31ST MARCH 2012Particulars As per 2005-2006 (Rs. In 2006-2007 (Rs. In lakhs) Schedule lakhs)SOURCES OF FUNDSShare holders funds A 3093.27 Share Capital B 40575.71 3093.27 Reserves & Surplus C 182.75 Deferred Tax Liability 39700.46 298.83Total 43851.73 43092.56Application of Funds Fixed assets R 11746.84 10157.90 Capital work in progress F 9037.29 Investments G 17.60 Current assets H 22531.31 27130.94 5163.18 Loans and Advances I 18968.74 18975.96 41500.05 46106.90 Less: Current Liabilities D 5895.47 6577 .63 0.10 Less: Provisions E 12554.58 11775.42 18450.05 18353.05 Net Current Assets 23050 27753.85 Miscellaneous expenditure (To the extent not written off J 0.00 or adjusted)
Significant Accounting Policy U Notes forming Part of T Accounts 17.53TOTAL 43851.73 43092.56WORKING CAPITAL Working capital refers to that part of the firms capital which isrequired for financing short teem or current asset such as cash, marketablesecurities, debtors and inventories. It is a measure of both a companys efficiencyand its short term financial health. If the working capital is positive it means thecompany is able to payoff its short term liabilities. If it is negative company isunable to meet its short term liabilities with its current assets. If a companyscurrent assets do not exceed its liabilities then it may run into trouble paying backcreditors in the short term. So if a company working in the most efficient manner(slow collection) it will show up as an increase in the working capital. Current Loans and Current Working Year Provision Year advance liability capital 2009- 29187.84 23718.91 4183.87 16521.69 32201.19 10 2010- 127130.94 118975.96 16577.63. 111775.42 27753.85 11 2011- 122531.31 12004-05 129187.84 112554.58 123050.00 12
ORGANIZATION CHART OF PRODUCTION DEPARTMENT DGM PRODUCTION AGM PLANT MANAGER DEPUTY PLANT MANAGER PROCESS ENGINEERSASST PROCESS ASST PROCESS ENGINEERS ENGINEERSOPERATORS OPERATORS WORKERS WORKERS
4) PRODUCTION DEPARTMENT KMML always maintain high standard of perfection by achieving technicalexcellence in every phase of production. Catering to strict guideline, KMMLoffers a wide range of products for quality conscious customers. Their products goin to the manufacture of variety of products used in every day life. Paint material,facial creams, tablets, newsprint, rubber products, cosmetics and printing inks allcontain TiO2. This department undertakes activities and decision regarding theproduction work. Deputy General Manager (production and maintenance) controlsthe activities of the department. Production of TiO2 is carried out in lot wise withspecific lot number. Each lot contain 15 MT of TiO2 samples are collected fromproduction at specific intervals and examined thoroughly in the laboratory or thecompany. If any defect is identified, then the lot is considered as inferior quality. . Mineral separation plant (MS unit) and TiO2 pigment plant (TP unit) istwo independent production units in KMML. The TP unit is divided in to threeplants. Illmenite Beneficiation Plant Acid Regeneration Plant PigmentMINERAL SEPERATION PLANT The MS plant was originally established in 1932 in the private sector.
Several machineries were added in the course of time. This plant situated by theside of the open mines, does the separation of the minerals from the beach sand.The raw sand is first concentrated in spiral separation to enrich the heavy mineralcontent. The wet concentrate is then dried in fluidized bed drier and then fed tothe dry separation plant. Magnetic separation and HT separation separate differentminerals. The plant also separates Rutile and Zircon from the sand.TITANIUM DIOXIDE PIGMENT PLANT TiO2 Pigment manufacturing process of KMML based on chloride route, theprocess consist of following steps. Reduction and leaching of raw illmenite of 90-92% TiO2 (illmenite Beneficiation) Regeneration of spent Hydrochloride acid for minimum pollution. Conversion of beneficiated illmenite to TiO2 pigmentILLMENITE BENEFICIATION PLANT Here the raw illmenite containing 58-60% TiO2 is beneficiated to 90%TiO2 content. The beneficiated illmenite is the raw material for the pigmentproduction plant. The ferric oxide in the raw illmenite is subjected to hightemperate of 8500c. The reduced illmenite then cooked and sent to digesterswhere it is leached with 1820% HydrocWoric acid. The spent leach liquor is sentto storage tanks. The leached illmenite after washing and filtering is calcined toget beneficiated illmenite.ACID REGENERATION PLANT The spend leach liquor from the pre concentrator is processed in to thespray roaster in which the liquid spray entering the furnace is heated by the
burning oil. The spend liquor then decomposes to metallic oxides andhydrochloric acid. The hydrochloric acid vapour is first cooled in pre concentratorand then absorbed in the wash liquor generated in the IBP to get 18% HCI whichis recycled back to IBP. The unobservable gases are scribbled with water beforeventing to the atmosphere. The metal oxide consisting of mainly iron oxide areslurred with water and routed to the slurry panel.PIGMENT PRODUCTION PLANTThe pigment production plant has three units: 1. Chlorination plant 2. Oxidation plant 3. Surface Treatment and Pigment Finishing PlantCHLORINATION PLANT This unit beneficiated illmenite from chlorinated as reducing atmosphereto produce Titanium Tetra Chloride (TiCI4). Chloride reacts with TitaniumChloride and other metallic oxides. Beneficiated in the illmenite in the pressurepetroleum coke at a temperature of 800-900c in fluidized bed chlorination toproduce chlorides are condensed and purified to obtain pure TiCl4liquid, which 4sstored in the storage vessel.OXIDATION UNIT In this unit raw pigment grade TiO2 is produced by reacting pure TiCl4and oxygen with at a temperature of about 1000c in a reactor after preheating theTiCl4 in a pure heater having suspended in code tubes to carry the TitaniumChloride vapour. TiO2 raw pigment obtained for this unit is scurried with waterpumped storage tanks for further processing in the pigment-finishing unit, thechlorine is liberated back to the chlorination unit. Oxygen and chlorine are required for oxidation and chlorination.
PIGMENT FINISHING UNIT The unit-dispersed slurry from oxidation unit is passed through thedifferent subsections of the unit via, sound milling and classification treatmentfiltration, drying, micronisation, scrubbing, cooling and bagging. In the treatmentsection chemicals are added. Give a coating to the pigment is reduced to twomicrons to be micronisation treatment. The hot micronised pigment is cooled andpneumatically conveyed to the final storage bin, this product is then bagged inpaper bags of 25 kg each stacked on woolen pallets (40 bags/pallets) anddispatched.AIR SEPERATION PLANT This unit has been designated by Mis Lair Linde, France and suppliedthrough M/s BHPV Ltd Visakapattanam. The Oxygen and Nitrogen are requiredfor the process in the Oxidation and chlorination unit. This plant has a capacity toproduce the following. 1 Gaseous N2 -1500 Nm/hr (50 MTD) 99.8% purity 2 Gaseous N2 -1800 Nm/hr (50 MTD) 99.5% purity 3 Liquid O2 - 37.5Nm/hr (2.5 MTD) 99.5% purity 4 Liquid N2 - 45Nm/hr (2.5 MTD) 99.5% purityIRON OXIDE BRICKS PLANT An iron oxide brick is a building material produced KMML. The materialsused for the production of iron oxide bricks are: 1. Iron oxide 2. Lime 3. Cement 4. Riversand 5. Sodium silicate The company has been facing a problem in the waste disposal areas. This
problem is mainly connected with the disposal of iron oxide slurry, which hasbeen coming outside from acid regeneration unit as a waste. In order to disposethe iron oxide powder the company started to produce the iron oxide bricks in theplant. At present the company is using this product for its domestic purpose suchas constructing compound wall, floor etc. 5) MAINTENANCE DEPARTMENT The maintenance department of KMML can be grouped in to Electrical,Mechanical and Instrumentation section. The Joint General Manager(maintenance) is the top authority.1. Electrical section: This department is under the control of assistant general manager(Electrical). It is the function of the department to ensure the flow of electricitythrough out the company.2. Mechanical section: This department is under the control of assistant general manager(Mechanical). Function of the department is to ensure the easy working ofmachines. The company is doing periodical shutdown. to carryout necessarymaintenance and servicing of the plant.3. Instrumentation: Assistant General Manager (Instrumentation) is the apex authority of thissection. The section inspects safety ness of valves, mechanics etc. and working ofinstruments. A statutory body occasionally visits the company to check the safetyof the plant.4. Civil: Manager (civil) controls the activities of this section. They undertake thefunctions relating to implanting new machinery etc.
ORGANIZATION CHART OF MATERIAL DEPARTMENT DEPUTY GENERAL MANAGER MATERIAL MANAGER MATERIAL PURCHASE STOREPURCHASE PURCHASE STORE STORE OFFICER OFFICER OFFICER OFFICER (INVENTORY (IMPORT) (INDIGENO CONTROL) US)) ASST ASST ASST STORE ASST STOREPURCHASE PURCHASE OFFICER OFFICER (INVENTORY OFFICER OFFICER CONTROL) STAFF STAFF CHARGE STAFF STAFF MAN STAFF
6) MATERIALS DEPARTMENT All functions relating to purchase and storage of materials for the companyis carried out by this department. This department is headed by the DeputyGeneral Manager (materials). There is around 27000 items of raw materials inKMML. The functions of material department can be grouped in to three: Purchase Storage Inventory controlPURCHASE SECTIONPurchase can be broadly classified as Purchase made in India, i.e., indigenous purchase Purchase made from foreign countries Cash purchase i.e., up to Rs2000/-with the permission of unit head Local purchase. i.e., up to Rs25000/-this arises in the case of emergencies and purchase can be made from approved.TERMS OF PAYMENT 1. Direct payment 2. Through bank 3. Advanced payment
4. Letter of creditPURCHASE FUNCTIONS Purchase of materials is an important function of an industry. Theprocedure of purchase is as follows:1. Purchase request: - The department or officer in need of material has to placehis request in a purchase requisition form. In case of raw materials, it is done bythe inventory control section. The purchase requisition is prepared in triplicate.The original copy of it is kept by storekeeper and the other is send to theauthorized executive. The purchase request must be approved by the concerneddepartment head.2. Stock verification: -On received the purchase request the storekeeper checkswhether the materials required is available through the store. If the materials areout of stock, the storekeepers inform the purchase section through and indentform.3. Selection of suppliers: - The next function is to select the supplier to whom theorder is to be sent. The company places a public tender notice for the procurementof raw materials. On the basis of the notice the vendor submit the tenders. Tendershave two parts:Technical bid and commercial bid: The tender committee opens the tender and verifies the technical bidand if they are satisfied with the technical bid i.e., with the quality of materials,they opens the commercial bid, the tender committee then prepares a comparativestatement and accept the lowest price quoted Quotation. Usually, a contract forone year is made for the supply of raw materials. To avoid risk of the irregularitiesof the supply, the company appoints more than one vendor. In case .of spare parts
the enquiry is send to the vendor for, the vendors list of company and the aptvendor is selected on the basis of tenders. The vendor list contains the name .andaddress of vendors and with specific items.4.Purchase order: - after deciding the supplier, the purchase officer of KMMLhas to place a purchase order. The purchase order is written authorization to thesupplier to supply the particular materials. The materials are to be suppliedaccording to the terms and conditions of the purchase order. In KMML five copiesof purchase order is prepared. The original is send to the supplier. Second copy is send to the material receiving section The third copy is send to the person who has placed the purchase requisition The fourth copy is send to the Finance department for future reference for payment. The last copy is kept in the department itself.5. Inspection of 200ds and quotation reception: - On receiving the materialsfrom the vendor, a visual inspection is conducted. If there is any discrepancybetween the party advice copy and received copy, a discrepancy is prepared and ifthere is any damage, a damage report is prepared. Items below Rs 500/- call for single quotation. Items above Rs 500/- andbelow Rs 50000/- are call for minimum three quotations from importantmanufactures, dealers and stockiest. Items above Rs50000/- call open tenders.STORE SECTIONStore section deals with: Receiving the materials Inspection of materials
Storage and presentation Proper classification and codification of materials ~ Materials handling Issue and dispatch Stock records Store accounting Stock takingSTORAGE FUNCTIONS Various documents are prepared by the store section for the properfunctioning of the department. The documents maintained are as follows: 1. Stores inwards book: - On receiving any materials to the store, it is enteredin a document called stores inward book (SIB) 2. Inspection of 2oods: - On receiving any materials and preparation of SIBinspection request is send to the concerned technical office for technicalevaluation and reports are prepared on this basis. 3 Store received note: - After the preparation of SIB and inspection of goodsor materials, Stores Received Note (SRN) is prepared. This is the documentshowing that the, materials received is accepted and payment can be made for it.The SRN is sent to the Finance -department for payment. Four copies of SRN aremaintained in KMML. Usually the company gets a credit facility for 45 days. 4. Materials issue note: - Any material is issued from the store only afterreceiving a material requisition or Material Issue Note (MIN). MIN contains allthe details regarding the material as well as the indenter. 5. Stock transfer note: - For transfer of materials between store or section orcontractors, for transfer of materials between store and section prepared, it
contains details such as material code, cost center, material description, unit andquality. It should be mentioned that from which section and to which section isthe transfer taking place. 6. Material return note: - Some times materials issued from the stores maybe returned. In that case Material Return Nate (MRN) is prepared. It containsdetails such as the name of department from which the material is returned, value,quality, code, unit, present balance and reason for return.BIN CARD BINCARD is a document attached to bin and it contains the quantitiesdetails of the materials received, issued and closing balance. In addition to this, itindicates information regarding different stock levels like minimum level,maximum level, recorder level etc coded number and name of materials.INVENTORY CONTROL SECTION Proper inventory management is necessary to provide and maintain goodcustomer service. It enables smooth flow of goods through the production process.It is important as it provides protection against the Uncertainties of demand andsupply and also performing the various production operations economically andindependently. Materials purchased for month is analyzed and an issue price is fixed forthe month. The company follows weighted average method.
7) MANAGEMENT INFORMATION SYSTEM Management Information System (MIS) is under the supervision of thedata processing department. Assistant General Manager (EDP) is the top authorityof the department. There are 70 personal computers in the company. 53 personalcomputers in the company are in local area network. Company is having 10 MegaBytes personal computers back borne copper cabling. It has four signals: 1. Stores 2. Plant technical service 3. Illmenite Beneficiation plant! Acid regeneration plant 4. Pigment processing unit/laboratory There is a direct connection from IBM server to Purchase, Finance,Marketing and Personnel department. The entire Information Technologyactivities are monitored by Electronic Data Processing (EDP) section. KMML isusing Oracle Related Database management system at backend and Power Builderas front-end. An integrated online application module developed in power builderis being used among finance, purchase, stores, marketing, personnel andproduction departments. The database is fed to the system by each department,which is required to generate various Management Information Systems to themanagement. A strict security control is incorporated in the operations of variousmodules.
ORGANIZATION CHART OF FIRE AND SAFETY DEPARTMENT DEPUTY GENERAL MANAGER FIRE AND SAFETY ASST GENERAL MANAGER FIRE OFFICER SAFETY OFFICERLEADING FIREMAN PLANT ENGINEER FIREMAN SAFETY INSPECTOR
8) FIRE AND SAFETY DEPARTMENT Fire and safety is a main department of KMML. It manages the process ofgiving security to the employees by giving successful training and giving licenseto employees and machines. The sections under fire and safety are:1. Employee details managing: - In this section the details of the employeesare identified by separate employee codes. Here in employee code, employeename, designation, date of birth, date of joining and qualifications are recorded.These section supplies the details of employee to another section.2. Employee training: - All the employees are trained for the successfulrunning up of KMML. The details of training is recorded when they gives eachtraining. Employee code, serial number, date of training, course and remark arerecorded. When an accident occurs the details of the training given to theemployee is produced.3. Employee accident: - This section handles the details of accident occurs tothe employee. Employee code, serial number, accident data, description ofaccident, the body part which was injured, unsafe condition or unsafe act, whetherlost time accident or not lost time accident, the days lost are recorded.4. Expo- Petr o-License: - This section stores the details of the licenseprovided to each machines. A different agency provides this license. It must have
to be renewed after the validity is lost. This section stores the serial number, itemname, license number, tag number, last test, test type etc.5. Lifting machines and tackles: - There are different lifting machines indifferent location. These machines have to be tested and if any defect it is stored.The machines are given a hoist no., location, last test, tested by, defect, next testand remarks are stored.6. Pressure vessel: - This section handles different machines, which handlethe substance of high pressure such as LPG, CHLORINE etc. It is very difficult tohandle these types of machines. It needs high security and to confirm whether theequipment is running smoothly. It contains serial no., section, pressure vessel, lasttest etc.7. Mock-drill: - It is a section contains trained person to maintain thesecurity. If any accident occurs, the help of this person is supplied and reduces thecomplexity of accident. An accident controller is the head of this section.
JOINT GENERAL MANAGER ORGANIZATION CHART OF (TECHNICAL) TECNICAL DEPARTMENT ASST GENERAL MANAGER (TECHNICAL) MANAGER (LAB) MANAGER R&D DEPUTY MANAGER DEPUTY MANAGER (LAB) (TECNICAL)SENIOR SCIENTIFIC DATA COLLECTOR OFFICERSCIENTIFIC OFFICER STATISTICIAN ASST SCIENTIFIC OFFICER LAB TECHNICIAN
9) TECHNICAL DEPARTMENT Assistant General Manager (technical) is the head of this wing. This wingfunctions as a third agency to the production and maintenance department. Thetechnical wing takes charge to research and development, Quality control,Laboratory and technical services.10) RESEARCH AND DEVELOPMENT KMML maintain a fully equipped research and Development facility in thearea of Pigment and paint technology with a view to establish world- classproducts and competitiveness. This excellent facility undertakes research,development and product improvement. Scientists and Engineers continuouslypursue innovative technologies in the area of TiO2 pigment, quality improvementand other allied products. The technical and sales service wing extends all helps tocustomer in the field of applications and users. KMMLs Research and development has achieved following tasks in recenttimes: 1. Developed new grade RC-802 with excellent balancing properties of glass and weather ability. 2. Successfully developed an improved process of oxidation plant. 3. Developed know how to convert iron oxide waste to bricks used for
construction. 4. Developed grade RC- 808, special grade for automotive coating.The following works are on progress: 1. Developing a grade suited for thin film plastic application. 2. Management of solid effluent ORGANIZATION CHART OF PROJECT DEPARTMENT DGM PROJECT MANAGER PROJECT DY MANAGER PROJECT PROJECT ENGINEERS ASST ENGINEERS DRAWING OFFICERS
11) PROJECT DEPARTMENT Joint General Manager (Project) is the head of the wing. This wing isengaged in the expansion program of the company. They are engaged in thebuilding up of new products etc. they also decide up on the future plans of thecompany.Some major projects on which they are working upon include: 1. A new MS plant of 2 lacks tones illmenite capacity per year 2. A new synthetic rutile plant of capacity 1.3 lacks 3. A new 100 tone per day Oxygen plant 4. Capacity enhancement of Ti02 plant in to one lacks tones per year.UTILITIES Assistant General Manager (utility) is the head of this department. Theutilities consist of steam, compressed air and water. Two boilers having a capacityof 33 tonnes/hr each and one package boiler of capacity 8 tones/hr supply thesteam. The compressed air for plant and instrument used is supplied at a pressureof 8 kg/cm2. There are four tube well pumps supplying water treatment plant.
SWOT ANALYSISS-STRENGTH 1. KMML is the only company in India producing Rutile grade Titanium Dioxide. 2. Constant up gradation of technology. 3. Raw materials are found in. nearby areas 4. Availability of cheap and best quality raw materials. i.e. Mineral sand consisting of illmenite, Rutile, Zircon etc. 5. The only integrated plant in the world having mineral separation plant, synthetic rutile plant, Titanium dioxide plant and all are closely located in one complex. 6. Profit making public sector undertaking with a total capital investment by the government of Kerala. 7. The company has achieved a break through in the export market. During the financial year 2011-2012 the company has earned the maximum foreign currency among the chemical factories of public sector undertaking in the state. 8. Technology perfected by internal research and development efforts.
9. Technological collaborations with the Russian Mining Company ROSSBORN for the production of Titanium Sponge.10.The proximity of infrastructure facilities such as seaport, Railway station and International Airport is one of the greatest strengths of the companyW - WEAKNESSES1. Lack of sufficient land for expansion projects and storing or disposal of hazardous waste.2. Poor quality power and lack of captive power generation facility.3. The internal control procedure relating to stores, raw materials including components, plant and machinery, equipment and other assets and for the sale of goods are not commensurate to the size of the company.4. External/political/Governmental interference on companys day to day affairs impairing corporate governance and professional management.5. Weight variation due to atmosphere effect of the package product.O - OPPORTUNITIES1. More sales realization in domestic as well as foreign market.2. Provision should be made for determination of unserviceable and damaged stores, raw materials and productivity3. Steady growth of user industries like paints, plastics, cosmetics and ink.4. Faster growth rate of market in Asian countries where manufacturing facilities are limited.5. Unexplored value addition sector like Titanium metal, Zirconium
compound 6. Kerala state being made better known to the outside world with the expansion of tourism and infrastructure technical sectors. 7. Technical collaboration with ISRO in Titanium Metal production.T - THREATS 1. Lower sales realization giants like Dupont, Kers -Mc Gee, Ishihara, and Crystal etc. 2. Duplication chances by stockiest. 3. Existing infra structure is very old and is need to be replaced. 4. Policy change of the state and central govt. regarding sand mining may affect the production. 5. Mining policy of central and state government can allow small time entrants to the sector.
FINDINGS As the global price for the product to coming down gross profit are decreasing and net profit through out the study. The long term solvency position of the company is satisfactory. The upcoming of new mining companies of Titanium product will make stiff competition on KMML. The inability of the management to control effectively the resistance raised by the local people in some radical issues. CONCLUSION In the previous chapters, the business activities of KMML studiescomprehensively. The origin of the company and its undertakings is found out. Ithas been found out that the Government is playing major role for prospering thecompany. Manpower activities, welfare schemes provided to its employees and itsgreat play in giving various training programmes have been positively revealed.The company is aiming at providing quality grades of TiO2 to its variouscustomers according to their wants. The company is successful in increasing its production capacity from 22000tones to 50000 tones and it is planning for its future. Dupont, USA is the
companys stiff competitor and companys marketing section keep tracks of itsproducts and demand and supply. The company has a good liquidity position. Thecompany is performing better in the recent years. The cordial and cooperaterelationship between the management and the employees is the secret behind thesuccess of this public sector company. All the departments in this organization areworking hand to hand thus bringing out the best results. It may be included that the study has been done successfully keepingthe objective in mind. I was very much benefited by this training at KMML It maybe included that the study has been done successfully keeping the objective inmind. BIBILIOGRAPHY Davis Keith, "Human Behaviors at Work", Tata McGraw Hill P.Varma, "Human Resource Management", S.K. Kataria & sons, New Delhi Stanton William. "Fundamentals of Marketing", Mc Graw Hill C.R.Kothari, "Research Methodology methods and Techniques", Wishwa Prakashan, New Delhi Philip Kotler and Kevin Keller "Marketing Managementwww.kmml.comwww.export-japan.com.inc Department Manuals Spreading Splendour (Monthly Newsletter from KMML) Company Brochures The KMML Standing Orders
Annual Report 2009-2010 Annual Report 2010-2011 Annual Report 2011-2012 APPENDIXABBREVATIONS KMML : Kerala Minerals and metals Ltd Ti02 : Titanium Dioxide ICICI : Industrial Credit and Investment Corporation of India SBI : State Bank of India SBT : State bank of Travancore PF : Provident Fund DGM : Deputy General Manager CITU : Centre of Indian Trade union INTUC : Indian National Trade Union Congress RSP : Revolutionary Socialist Party AGM : Assistant General Manager AAO : Assistant Administrative Officer APO : Assistant Plant Officer
AO : Administrative OfficerHRD : Human Resource DevelopmentJGM : Joint General Manager