Organisation Study - Indian Rare Earths Limited

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Organisation Study - Indian Rare Earths Limited

  1. 1. An Organisation Studyat Indian Rare Earths Limited, Chavara, KollamSubmitted in partial fulfillment for the requirement for the award of the degree ofMASTER OF BUSINESS ADMINISTRATIONM G UNIVERSITYKOTTAYAMSubmitted byAmpady SRegister No: 10111Under the guidance ofMr.: Mathew KurianFaculty MemberMBA Department, Caarmel engineering College,PathanamthittaCaarmel Engineering CollegePerunad, PathanamthittaMay 2010
  2. 2. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 2DECLARATIONI declare that the project report entitled “Anorganisation study on Indian Rare Earths Limited” Submitted by me for the award ofMaster of Business Administration of M.G University is my own work. The report hasnot been submitted for the award of any other degree of this university or any university.Place: Kollam Ampady SDate:
  3. 3. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 3ACKNOWLEDGEMENTFirst of all I wish to express my deep gratitude and thanks to God who helped us incompleting the organisation study successfully.I shall remain grateful to Mr.: Mathew Kurian, Faculty, MBA Department,Caarmel Engineering College for his amble guidance and encouragement for completing theorganisation study. I am also extremely grateful to faculty member for their valuable suggestionsand advice regarding this work.I also express my profound gratitude to project guide Mr: A.Jayapalan,Sr. Manager, HRM for his valuable guidance and timely advice and well wishers forencouragement given to us during the course of the project.It is my pleasure to express a deep sense of grateful to Mr: Chandrasekhar,Sr. Manager, Safety & Environment Department & MIS without his untiring efforts andtremendous background information this work would not have materialized. I express my sincerethanks to all the staff of IREL, Chavara for their co-operation during my study in the company.Last but not least we thank my parents and for all their moral support and help, theyhad given to me.
  4. 4. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 4CONTENTSIntroductionIndustry ProfileCompany ProfileProduct ProfileCustomer ProfileDepartmentalisationHRM DepartmentMining DepartmentProduction DepartmentQuality Control DepartmentStores & Despatch DepartmentInternal Audit DepartmentResearch & Development DepartmentProject & Maintanance DepartmentMarketing & Sales DepartmentFinance DepartmentMedical DepartmentSecurity DepartmentSafety & Environmental DepartmentPurchase DepartmentCivil DepartmentSWOT AnalysisFindingsSuggestions & RecommendationsConclusionBibliography
  5. 5. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 5Table of ContentsSubject Page NumberChapter 1Introduction 7Objective & Scope of study 9Methodology &Limitations of the study 10Chapter 2Industry Profile 11Company Profile 14History of the organization 15Vision & Mission of IREL 16Awards & Achievements 17Product Profile 20Customer Profile 22Chapter 3Human Resource Department 24Mining Department 37Production Department 39Quality Control Department 44Stores & Despatch Department 46Internal Audit Department 49Research & Development Department 51Project & Development Department 52Marketing & Sales Department 54Finance Department 58Medical Department 62Security Department 65Safety & Environment Department 66Purchase Department 71Civil Department 72Chapter 4 SWOT Analysis 73Chapter 5Findings 77Suggestions & Recommendations 78Conclusion 79Appendices 80
  6. 6. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 6LIST OF TABLES & CHARTSName of the Table/Chart Fig. No Page NoCorporate Structure 1 8Mineral availability & Contribution 2 12Mineral Details 3 13Product Profile 4 19Product & Uses 5 20Department Structure – HRM 6 24Manpower Strength of the company 7 26Pay scale – workmen 8 29Pay Scale – Officers 9 30Department structure – Time Office 10 35Department structure – Mining 11 38Department structure – Production 12 39Production Capacity 13 41Production Process 14 43Department structure – Quality Control 15 44Department structure – Stores & Despatch 16 46Department structure – Internal Audit 17 49Department structure – Research & Development 18 51Department structure – Project & Maintanance 19 53Department structure – Finance 20 58Department structure – Medical 21 62Department structure – Security 22 65Department structure – Safety & Environment 23 66Department structure – Civil 24 72Organisation Structure 25
  7. 7. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 7INTRODUCTIONEach and every organisation has its own importancein the economic wealth of the nation. Different organisation meets different needs of people byoffering different products and services. Due to globalisation the world has changed into a globalvillage. In this fast and changing business scenario, it is imperative for every entrepreneur tohave a vivid understanding of the functional application of the new age business. As a part of theacademic curriculum each student has to undertake an organisational study to get practicalexposure. This study is conducted at Indian Rare Earths Limited, Chavara.IREL Chavara is located 10 km north of Keralaand 85 km from Trivandrum, capital of Kerala and 135 by road from Kochin is perhaps blessedwith the best mineral sand deposit of the country. The plant operates on a mining area containingas high as 40% heavy minerals and extending over a length of 22 kms in the belt of Neendakaraand Kayamkulam.The deposit is quite rich with respect to Ilmenite,Rutile and Zircon and the mineral Ilmenite happens to be of weathered variety analysing 60%Titanium Dioxide (TiO2). The present annual production capacity of Chavara unit engaged in dryas well as wet (dredging / Upgradation) mining and mineral separation stands at 2,00,000 tonesof Ilmenite, 1,14,500 tones of Rutile, 11,750 tones of Zircons and 10,000 tones of Sillimanite. Inaddition to that, the plant has facilities for annual production of ground Zircon called Zirflour andMicrozir of the order of 6,000 tones and 300 tones respectively.IREL Chavara is one of the oldest and leadingpublic sector undertaking under the Department of Atomic Energy (DAE). It is an ISO 14001:2000; OHSAS 18000 certified company supplies beach sand minerals to the foreign anddomestic market. It caters the requirements of developed countries like U.S.A, U.K, Germany,Australia, Japan etc. The major mineral products of IREL are Ilmenite, Rutile, Sillimanite andZirflour.
  8. 8. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 8CORPORATE STRUCTUREMineral DivisionChavaraCorporate & Registeredoffice at MumbaiMineral DivisionManavalakurichiOSCOM PlantOrissaRare Earths DivisionUdyogamandalFig No. 1
  9. 9. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 9Chapter 1RESEARCH DESIGNA research design is a plan of the proposed researchwork. The research design simply a specific presentation of the various steps in the process ofresearch. Design means adopting that type or technique which is most suited for the research andstudy of the problem. It is a plan, structure and strategy of investigation conceived so as to obtainanswers to research questions and to control variance.1.1 OBJECTIVE OF THE STUDYThe main objective of the study is to familiarisewith the organisational functions in the organisation, there are many other minor objectives also.They are the following:-To understand about how an organisation’s system is performing.To know about various departments and their functions in an organisation.To study the managerial activities performed in an organisation.To know how an organisation coordinates its activities.To get a practical exposure as the future manager.1.2 SCOPE OF THE STUDYThe scope of the study is to know about theorganisation, its structure, the functions performed by various departments and to know theoverall performance of the organisation. The study will help the management students to get apractical exposure.
  10. 10. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 101.3 METHODOLOGYBoth primary and secondary data were used for thisstudy.1. Primary Data:-The primary data can be obtained either through observation orthrough direct communication with respondents in one form or another or through personalinterviews. There are several methods for collecting primary data. They are observation method,interview method, through questionnaire, through schedule etc. Here primary data were obtainedfrom direct interviews made on with managers, officers and workers of the firm.2. Secondary Data:-Secondary data means data that are already available ie: - they referto the data which have already been collected by someone else. Here secondary data werecollected from company brouchers, manuals and other records.1.4 LIMITATIONS OF THE STUDYThe study is limited to my experience and knowledge.Lack of availability of secondary data from published journals and reports.Secrecy of the organisation prevents them from giving some of the detailsregarding the firm.Employees were busy in their work so they could not give moreinformation.Their may be errors due to the bias of the respondents.Time is a major limitation in the course of study.
  11. 11. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 11Chapter 2INDUSTRY PROFILERare earths elements series of chemical elementsof the periodic table. The rare elements with atomic numbers 57 through 71. In the early yearsthese elements were considered as rare elements and so they are called as rare earth metals. Latermany elements in this group were found splendid but their name remained unchanged. Theprimary source of rare earth elements is greenish yellow coloured mineral sand, which isMonazite. Its availability in nature is confined to certain beaches and rock found in certaincountries. The beaches containing the Monazite are found mixed with other minerals too. Most ofthese are ores for valuable metals. An ore is a mineral form which metal can be separatedeconomically. These ores are Ilmenite, Rutile and Zircon. Ilmenite and Rutile forms the ore forTitanium, Zircon for Zirconium. Even though Aluminum bearing metal Garnet and Sillimaniteare also found along with these beach sand minerals. But they are not commercially exploited forAluminum production due to economic reasons. However Garnet and Sillimanite in their naturalform are commercially significant. Ilmenite which is black in colour constitutes a major chuck ofthese minerals (60%) presence of these minerals makes the beaches appear black. These mineralsare commercially known as beach sand minerals or heavy minerals.The origin of beach sand is from rocks, which are rich with heavyminerals. This sand particle reaches sea through rivers. The sea level is not remaining constant. Itis regarded that the sea level. It is now really 100 meters above what we had seen 20,000 yearsago. This white sand seen at the beach area contains the main constitute as Quartz. This is lighterthan black sand. As a result of movement of the sea this sand will erode away and black sand getdeposited. The black sand thus deposited 100 years ago is mined and processed.In the year 1789 Fr. William George (1761- 1817) discovered Ilmenite atknower in England and stated that this black sand contains some important metal. But he failed todiscover which metal it was. After several time, in the year 1875 the Hungarian scientist MartinHeen Witch Klapporth found the same metal contains in the Rutile minerals about which Fr.William George mentioned. After a series of investigations are found those metals content asTitanium after “Titan” of Greek mythology.
  12. 12. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 12Technology developed over the year has made the beach sand minerals tobe utilised in a variety of “industrial and domestic” applications. Monazite was mainly used inthe gas mantle industry. After the advent of electricity its demand decreased in the gas mantleindustry. Ilmenite and Rutile are used in high temperature refactory industry, ceramics industryetc. Zircon is used in foundries, ceramics, refectories and in the manufacturing of Zirconiumchemicals, metals and alloys. Zirflour is used in foundries for high temperature castings. Garnetis used in the manufacturing of abrassive polishing glass, TV tubes, for sand blasting and forwater filtration. The beach sand mining and processing industry has vast future because of theirdemand in nuclear industry too. In the present scenario of booming economics like India andchina there is a huge demand for the beach sand minerals, Ilmenite in particular.The current world production capacity of Ilmenite and other Titanium feedstocks for production of Titanium Dioxide Pigment, Titanium metal, Welding electrodes etc isused around 70 lakhs million tones per annum (tpa). Approximately half of this from beach sandsand the balance from Ilmenite rocks mostly found in Canada and Norway. In view of the limitedsupply of natural Rutile its share of consumption in pigment production is rather small and 55%of its total availability of about 5 lakhs tpa is used in the non-pigment applications predominantlyin the production of welding rods and Titanium metal. The present production capacity ofpigment in the world is just above 4 lakhs tpa. North America is the largest producer with 37% ofthe global capacity. Europe with 32% capacity is the second largest producer and Asia-Pacificregion with 21% capacity is the third. The balance 10% distributed among the rest of the world.India has the largest resources base of 278 million tones forIlmenite. This is the single largest and Ilmenite and least exploited mineral deposit in the world.However 10% of this is only minerable resources base in India for other minerals are:-Minerals In Million Tones Contribution to the worldRutile 18 10%Zircon 21 14%Monazite 8 7%Sillimanite 130 25%Ilmenite 107 35%Fig No. 2
  13. 13. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 13In India the installed production capacity for Ilmenite is around 5-2 lakh tpa(5-6% of global Ilmenite production) and the production of Ilmenite and Rutile during 2004-05was over 3-5 lakh tones and 1300 tones respectively.Presently there are few private organisations engaged in the mining andmineral separation of beach sand minerals. The Indian players at present are Transworld GarnetPrivate Limited, VV minerals, Earth Minerals Private Limited, Tuticorn Titanium Resources andvalue addition.It can be seen that value will be increased about 100 time through value addition natural Ilmenite.Key success for the beach sand mineral industry are:-Increase the Ilmenite capacity to reach economic scale of production.Value addition project in minerals and rare earths compound.Initiate action to develop new mining areas.Forward integrate through stake in world leader in pigment Industry likeTinfoss, DuPont or selling up a pigments plant.Explore other mining options in neighboring countries.Ti Mineral TiO2 USD/TonesMineral feed stock> Ilmenite50-60 200-250Manufacturing feed stock> Stag> Syn Rutile8793575878TiO2 Pigment> Rutile GR> Antase GR99.899.836663333Ti Sponge 99% Ti 11111Ti Mill Productions 99% Ti 22222Fig No. 3
  14. 14. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 14COMPANY PROFILEOn August 18, 1950 Indian Rare Earths Limited (IREL)was incorporated as a private limited company jointly owned by the govt. of India and Govt. ofTravancore, Cochin with the primary intention of taking up commercial scale processing ofmonazite sand at its first unit namely Rare Earths Division (RED) Aluva and Kerala for therecovery of thorium.After becoming a full fledged central govt. undertaking in 1963 under theadministrative control of Department of Atomic Energy (DAE), IREL took over a number ofprivate companies engaged in mining and separation of beach sand minerals in southern part ofthe country and established two more divisions one at Chavara, Kerala and other atManavalakurichi(MK), Tamilnadu.After a gap of 20 years IREL commissioned its largest division calledOrissa Sand Complex (OSCOM) at Chatrapur, Orissa. Today IREL operates these four units withcorporate office in Mumbai and produces/ sells six heavy minerals namely Ilmenite, Rutile,Zircon, Monazite, Sillimanite and Garnet as well as various value added products IREL ismaking profit for the last 6 years with its sales turnover reaching a peak exceeding Rs: 2600millions in 2000-01, with export component of above Rs: 1000 millions.Chavara plant is engaged in the processing of beach deposits available onthe coastal belt of Neendakara- Kayamkulam.
  15. 15. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 15HISTORY OF THE ORGANISATIONIREL’s history should not be narrated withoutmentioning the name of the Germen chemist Mr. Herr Schomberg who has realised that theshining yellowish brown particles sticking to coir, a coconut fiber shipped from India (1909)contained Monazite.This sparkled the discovery of vast deposit of monazite a rich source ofrare earths a group of elements with a wide variety of uses in industry and science. A few plantswere operating at Chavara and Manavalakurichi for the separation of monazite.1948:- The govt. of India setup atomic energy commission under the chairmanship of Dr: HomiBhabha. The export of Monazite was stopped and the possibility of setting up a facility to processthe beach sand mineral for the production of Rare Earths was examined.1950:- IREL was incorporated at Bombay1951:- IREL become the full-fledged govt. undertaking under the Department of Atomic Energyand commissioned construction of its rare earths plants at Udyogamandal in Kerala.1952:- Rare earth plant was dedicated to the nation on Dec 24 by the Jawaharlal Nehru.1955:- Opening Thorium factory of Bombay.1965:- Opening mineral division at Kollam in Kerala state with manufacturing facilities atChavara in Kerala and Manavalakurichi in Tamilnadu and a giant mineral sand separation andsynthetic Rutile plant at Chatrapur in Orissa.
  16. 16. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 16VISION OF IREL1. To be a leading supplier of beach sand minerals from Asia by supplying 10% ofthe world demand for beach sand minerals over the next 7-10 years. It would be achieving bymaximum utilisation of existing capacities, new capacity addition, capturing major portion of theincremental growth in the global TiO2 feedstock demand and by developing competitive valueadded Rutile, Zircon, Sillimanite and Garnet products that make handsome contribution torevenue and profits.2. To become the preferred rare earths products supplier (Producer and/ or Marketer)for domestic customers to ensure long term sentences and profitability of rare earths business andto achieve adequate efficiency in monazite processing as long as it is necessary / worthwhile.MISSION OF IREL1. To harness beach sands in an environmentally and socially responsible manner forefficiently producing minerals and their traditional and innovative value added products of worldclass quality that are used to make increasingly superior/ novel products required by customers.2. To play a dominant role in developing domestic rare earths market by producingand/ or marketing the quality value added products to realise maximum potential or rare earths ina range of applications.3. To build a professional, creative and committed workforce and nurture anenvironment that fosters learning, sharing and development.
  17. 17. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 17QUALITY POLICYIREL is committed to provide products ofconsistant quality to their satisfaction of the customers through Quality Management Systems(QMS) implementation.TECHNICAL EXCELLENCEIREL uses state of art technology in mining and mineral processing. The rich experience andprofessional expertise of people who are one among the best in the industry and strictcompliances to quality standards has enabled IREL to remain as the leading supplier of heavyminerals to the nation and abroad. IREL is always been driven y innovation and soundmanufacturing practices, be it in product, technology or process.AWARDS AND ACHIEVEMENTSIREL has fairly good record in its performanceduring the past decade. From 1997-98 onwards all out team efforts was taken up to achieve nameplate capacity for the mining and mineral separation plants in all the three locations, total salesturnover, share of export and profit after tax started improved by leaps and bounds and thecompany recorded increasing profit since then. In addition to production and financialperformance, IREL has excelled in the areas of marketing, safety and human resourcesmanagement. In recognition of the company’s efforts, scope awarded prestigious silver Trophy of‘SCOPE’ award for excellence and outstanding contribution to the Public Sector Management-Special turn around category for the year 1999-2000. During the year 2006-07 IREL posted alltime high sales turnover exceeding 3600 millions with export component over Rs:1000 millions& all time high profit before tax of Rs:1000 millions.
  18. 18. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 18Following are the list of awards & recognition won by IREL during the last ten years.EXPORT AWARDS1. Chemical and Allied Products Export Promotion Council (CAPEXIL) special Exportaward from processed Mineral group for the year 1996-97,98,99,2000,01,02,03,04,05,06.2. Indian Chemical Manufactures Association Certificate of Merit for ISO 9000certification for 1997, ISO 9002 certification for 1998.3. Certificate of merit from CHEMEXCIL under the category of basic inorganic andorganic chemicals for outstanding performance for the year 2000-2001 includingAgrochemical Panel.SAFETY AWARDS1. AERB safety awards won by Chavara Unit (Winner) for the year 2003.2. Greentech awards won by Chavara Unit (Winner) for the year 2003.3. Safety award from National Safety Council, Kerala chapter won b Chavara Unit(Runner) for the year 2003.4. National Safety Award (Mines) for lowest Injury Frequency Rate won by ChavaraUnit (Winner) fir the year 2003.5. Apart from above national level safety Awards company’s Mineral Separation plantsnamely Chavara has won many state level awards.OTHER AWARDS1. Silver Trophy of ‘SCOPE’ award for excellence and outstanding contribution to thePublic Sector Management _ Special Turn around category for the year 1999-2000.(SCOPE - Standing conference of Public Enterprises)2. Enterprise Excellence Award 1999-2000, 2000-2001 from Indian Institute ofIndustrial Engineering.3. Hindi Rajbhasa Shield for the year 2000-2001 for the best amongst PSU’s underDepartment of Atomic Energy.
  19. 19. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 19FUTURE PLANIn the light of new changing economic scenarioIREL is poised to adopt a two pronged strategy namely consolidation and expansion of theoperations and joint venture for value addition and new production facilities. Company ispoised to reach greater heights in the years to come. The phase I expansion at Chavara isnearing completion and the expansion at MK is expected to takeoff soon. Expansion ofcapacity at OSCOM is also progressing. I addition to expansion of mineral separation plants,the company is planning to restart the manufacture the rare earths products in big way withimplementation of Monazite Processing Plant (MoPP) at OSCOM which is likely to commencecommercial operation by 2009. The successful completion of expansion activities will bringforth a new era of higher capacity and profits and the company it is hoped will attain thepinnacle of glory. The company will continue to be one amongst the most successful PSU’s.
  20. 20. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 20PRODUCT PROFILEProduct means to the goods and servicescombination the company offers to the target market.Product Specification Specific Gravity Density PackagingIlmenite TiO2 - 58% 4.45- 4.54 2600- 2630In bulk HLP bags withPolithine linerRutile QGradeTiO2 - 95% 4.18-4.24 2630-2650In bulk 50 kg HLPbags with PolithinelinerZirconSpecialGradeZrO2 - 58% 4.60-4.70 2900-3000In bulk 50 kg HLPbags with PolithinelinerSillimanite QGradeAl2O3 3.20-3.25 1950-2050 50 kg jute bagsZirflour ZrO2- 64% - 1800-185050 kg laminated HLPbags with PolithinelinerMicrozir ZrO2- 63.5% - -Liner 20 kg laminatedPolithine bagsFig No. 4
  21. 21. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 21Products UsesIlmeniteManufacturing of TiO2 pigment synthetic Rutile and TitaniumslagRutile Fluxes for welding electrodesZircon sand Ceramics, Refractories and foundries.Zircon Flour Ceramics and foundries.Microzir Pacifier in CeramicsSillimanite RefractoriesGarnet Abrasive for sand blasting, water jet cutting and glass polishing.Monazite Raw material for production of Rare earth ComponentComposite RE ChlorideCatalyst, Paint driers, basic raw material for Misc. metal whichused as lighter frint & mantles.Thorium Nitrate Gas MantlesFig No. 5
  22. 22. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 22CUSTOMER PROFILEPrime customers of the major products of thecompany are the following:-A. ILLMENITE:-1. KOCHIN MINERALS AND RUTILE LTD. KOCHI.2. DCW LTD. TUTICORN.3. TRAVANCORE TITANIUM PRODUCTS LTD.4. KILBURN CHEMICALS LTD. TUTICORN.5. KOLMAK CHEMICALS LTD. KOLKOTA.B. RUTILE:-1. ESAB INDIA LTD, CHENNAI/ KHARDAH.2. ADOR WELDING LTD., MUMBAI/CHENNAI.3. D & H SECHERON ELECTRONICS (I) LTD., INDORE4. MARUTHI WELD LTD., GURGAON.5. ROYAL ARC ELECTRODES PVT. LTD.VASAI, THANNE DIST.C. ZIRCON:-1. THIRUPATHI MICROTECH (P) LTD., UDAIPUR.2. RUBY CERAMICS PVT LTD., PUNE.3. ASTRON CERA, SALAL DIST, SABARKANTHA.4. JOHNSON MATTHAEY CERAMICS INDIA LTD, HOSUR, TN5. FOUR FIELD, PUNE.D. ZIRFLOUR:-1. FOSECO INDIA LTD., PUNE.2. VIDEOCON NARMADA GLASS, BHARUCH.3. H & R JOHNSON (I) LTD., MUMBAI.4. NAHAR COLOUR & COATING LTD., UDAIPUR5. BHANU CERGLAZE P.LTD.
  23. 23. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 23E. SILLIMANITE:-1. MAITHAN CERAMICS PVT. LTD., CHIRKUNDA, JHARKHAND2. MANISHRI REFRACTORIES, CUTTACK.3. ASSOCIATED CERAMICS, CHIRKUNDA, JHARKHAND.4. TATA REFRACTORIES, BELPAHAR, ORISSA.5. ASSOCIATED CEMENT COMPANIES LTD., NAGPUR/KATNI.F. RARE EARTHS CHLORIDE:-1. CIBA SPECIALITY CHEMICALS, UDYOG NAGAR, GUJRAT.2. DHIRAJ INTERMEDIARIES P LTD., VAPI, GUJRAT.3. RAVESHIA PIGMENTS LTD., VAPI, GUJRAT.4. ANUPAM COLOURS, VAPI, GUJRAT.5. BERGER PAINTS INDIA LTD., VAPI, GUJRAT.G. THORIUM NITATE:-1. FARGO MANTLE PRODUCTS LTD., MUMBAI.2. MAKANI PRODUCTS LTD., MUMBAI.3. B.K SHAW INDUSTRIES (P) LTD., KOLKATA.4. A.D.C MANTLE MANUFACTURING CO., MUMBAI.5. ELITE INDUSTRIES, MUMBAI.
  24. 24. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 24DEPARTMENTS1. HUMAN RESOURCE DEPARTMENT:-IREL Chavara takes place it’s highly motivated and trainedhuman resource that has maximised its performance and their by its growth and profit. Morale ofthe employees remains facilitating smooth working of the company. Skill requirement related todifferent disciplines are identified and training programs and workshops are efficiency of thehuman resource.DEPARTMENT STRUCTUREFig No. 6Sec. HeadTrainingSec. HeadLegalIn chargeWelfareMedicalPersonnelSenior Asst.Time OfficerSecurityGuardsDpty. ManagerSection HeadSenior Manager(HOD) MedicalDpty. Admin OfficerTime OfficerManagerSecurityGeneral ManagerHRMUnit HeadSubordinate Staff/ Clerical Staff
  25. 25. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 25HR department lead by General Manager and two DeputyManagers assisted him. The Security Department and Time Office are working under the GeneralManager of HR Department. Four Deputy Officers and 14 clerical staffs are working under theDeputy Managers.People are the most important resources of an organisationThe main functions of HR Department are:-1. Administration2. Industrial Relations3. Training and Employee Welfare4. Time Management1. ADMINISTRATIONThe administrative functions of HR departmentincludea. Manpower planningb. Recruitment policyc. Performance appraisald. Salary and wages administratione. Industrial disciplinef. Maintaining service book and personnel fileg. Maintaining reservation registera) Manpower Planning:-Manpower Planning is important for any type oforganisation. It is the process which determines how an organisation should move fromits current manpower position to its desired manpower position. For this purpose, the HRdepartment at IRE collects feedback from all department inorder to identify theirmanpower requirements of various departments and then the HR department crosscheckwhether there is any overstaffing in any of the departments. If these departments haveexcess of staff, they are transferred to those departments where there is a shortage.The company considers the number of employees presentlyas significantly high. There is a problem that sometime the VRS can lead to scarcity toworkers for particular job. At IREL using the process of multitasking the employees are
  26. 26. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 26made fit to work in other function also. By the VRS scheme more than 100 employeeshave been sent out within span of 3 years.Manpower of the companyThere are 491 employees in the company. Total executives are 105 andworkmen are 380. The number of contract workers are 632.Details showed as below.MANPOWER STRENGTHMale Female TotalExecutives 83 22 105Workmen 355 31 386Total 438 53 491b) Recruitment policy:-Recruitment in Chavara Plant is done through localemployment exchange for find out prospective workers. The office staffs and managers arerecruited by the Head Office through tests and Interviews.Recruitment CriteriaFor the recruitment of candidates, the candidates should be above 18 yearsof age. The following steps are taken before the recruitment of employees. They are govt.guidelines, the recruitment only through employment exchange, notification in internet andCONTRACT WORKERSLoading 65Civil 85Mining 235Bagging 218Canteen 29Total 632Fig No. 7
  27. 27. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 27advertisement in newspaper should be needed. Application will be scrutinised with the help of aselection committee and eligible candidates are called for an interview.Selection:-The steps followed in the selection process are1. Inviting and receiving applications2. Scrutinising the applications3. Selection Test: - The selection tests of employees area. Aptitude Testb. Personality Testc. Achievement Testd. Trade TestAppointment will be based on certain criteria’s like they are medicallytested after that induction training should be given. After training for a period of one year ormore they will be put as permanent employees.c) Performance Appraisal:-Appraisal is the evaluation of work quality or merit. In thecase of IRE performance appraisal is a systematic evaluation of employees by supervisors orother familiar with their performance.1. Straight ranking method:-Under this method men as a whole are compares from other menand ranked on the basis of overall performance.2. Grading method:-Under this method certain categories of work such as excellent,very good, average, poor, very poor are established and defined actual performance of eachemployee then compared with the grade definitions and ranked to evaluate the performance ofthe employees. Last grade employees that are 8th& 9thgrade, their work performance have beenobserved by supervisors. But in the case of executives MBO’s are observed their performanceand efficiency.In IRE performance appraisal is done on a yearly basis to asses theperformance of the employees. The appraisal is done by three persons.
  28. 28. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 281. Reporting Officer.2. Reviewing Officer.3. Evaluating Officer.Firstly the employees themselves do an appraisal and this is givento the reporting officer and the person who has done the Key Appraisal together identifies theKey Result Areas and weightage is allotted to each one of them. This is usually done at thebeginning of the year. The reporting officer checks whether the result areas set where met by theappraisal or if their any deviation from it. And this is to be sent to reviewing officer and thenevaluating officer. Various other factors such as the appraiser’s managerial skills like jobknowledge, interpersonal skills are also included and guided and that is allotted in the appraisaland there promotion is based solely seniority.Promotion:-In IREL promotion is given seniority based or based on experience.Promotion is a transfer of an employee to a job that pay more money or that enjoys somepreferred status. Sometimes the company is considering the length of the service, education,training courses completed, previous work history etc. Sometimes the company is alsoconsidered ability, hard work, co-operation, honesty etc.Condition for getting Promotion:-1. Average leave should not exist more than 15 days.2. Any disciplinary actions should not be taken during the service of periods.3. Should not apply for job in any other organisation.These candidates are eligible for getting promotion.d) Salary and Wages Administration:-Wages in the widest sense means any economiccompensation paid by the employer under some contract to his workers for the service renderedby them.
  29. 29. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 29Acts Followed:1. Workmen Compensation Act 1923 Sec 2(m).2. Payment of Wages Act 1936 Sec 2 (VI)3. Payment of Wages Act 1948PAY SCALEThe monthly remuneration received by each of theemployees including system of compensation.FOR WORKMENScale of Pay:-Grade Scale of PayW - I Rs: 4085-70-6885W - II Rs: 4110-80-7310W - III Rs: 4120-90-7720W - VI Rs: 4160-100-8160W - V Rs: 4185-110-8585W - VI Rs: 4270-120-9070W - VII Rs: 4325-135-9725W - VIII Rs: 4420-155-9845W - XI Rs: 4465-180-9865W - X Rs: 5750-190-10500 ** -Only in RED, AluvaFig No. 8
  30. 30. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 30FOR OFFICERSScale of Pay:-Code Designation Pay ScaleE - 0 Deputy Officer 6550-200-11350E - 1 Officer 8600-250-14600E - 2 Senior Officer 10750-300-16750E - 3 Deputy Manager 13000-350-18250E - 4 Manager 14500-350-18700E - 5 Senior Manager 16000-400-20800E - 6 Deputy General Manager 17500-400-22300E - 7 General Manager 18500-450-23900E - 8 Chief General Manager 20500-500-26500E - 8(a) Executive General Manager 21500-550-27000Directors 22500-600-27300Chief Managing Director 25750-650-30950Fig No. 9
  31. 31. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 31e) Industrial Discipline:-Disciplinary actions are taken in the HR department.Procedure for disciplinary actions is on receiving a complaint about a particular employee,explanation is asked. Employee will give an explanation before 15 days. If the explanation is notsatisfactory he will be given a charge sheet and will also conduct a domestic enquiry. For thispurpose an enquiry officer is placed. After conducting the enquiry the report should be sent to thedisciplinary committee and if necessary certain punishment may also given.2. INDUSTRIAL RELATIONMost of the disputes will be settled by the companyand trade unions. If it is not cleared, they can approach to the government. The Trade Unionsactive in IRE are:-1. United Trade Union Congress (UTUC)2. Indian National Trade Union Congress (INTUC)3. All India Trade Union Congress (AITUC)4. Travancore Mineral Workers Union (UTUC (B))5. Indian Employees Rare Earth Federation (CITU)6. Indian Rare Earth Mazdoor (BMS)These are the recognised unions. There are somecriteria for recognizing a union; the union will have 15% of employees as their members. Alsosome participative forum is present; they are plants committee, safety committee and Housebuilding committee. These committees will have the equal participation.3. TRAINING & EMPLOYEE WELFARETraining and Development:-“Training is the act of increasing the knowledge and skills of an employee forduring a particular job”. Indian Rare Earth Ltd adopted various techniques of training forincreasing the mass productivity. The training program is restructured regularly in IRE. Theobjective of training and development in IRE
  32. 32. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 321. Increase the efficiency2. Increase the moral of the people3. Reduce the absenteeismProcedure for Training1. Identifying the training needsThe company identifies the training needs through 3 ways: -a. Organisation Analysisb. Task Analysisc. Man Analysis2. Executives themselves will discuss the training needs3. Charting out the training plan for a period4. Based on feedback individual training is givenTraining MethodsIRE has mainly four types of training methods.1. In-house Training2. External Training3. Vocational raining4. First Aid TrainingThe training method can be grouped on the basis of level ofpersonnel in the organisation.1. In-house Training: - Otherwise known as on the job training. In thismethod expert from outside come to the organisation and give training.2. External Training: - Also known as off job training is given outside theorganisation.3. Vocational Training: - At least 20% of the employees should be trainedevery year.4. First Aid Training: - 30 people in one batch and give them training.
  33. 33. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 33Employees Welfare:-Two types of employee’s welfare are present in IREL. They are1. Statutory welfare and2. Non Statutory WelfareGratuity, Provident Fund, Pension, Canteen,Medical Allowance are included in the statutory welfare. Festival Allowance, LTC, Recreation,Tour Facilities are included in the non statutory welfare. Also the IREL give some kind ofallowances. They areShift AllowanceFor employees working in shifts expect general shifts will get anallowance as follows1stShift (8 am to 4 pm) - Rs: 10/day2ndShift (4 pm to 12 pm) - Rs: 15/day3rd Shift (12 pm to 8 am) - Rs: 25/dayHard Shift AllowanceSince the plant handles sand for its production, it creates a dust in theatmosphere. Considering this hardship in work every employees of Chavara plant gets Rs: 135/-month as hardship allowance.Uniform AllowanceEvery employee is provided with two pairs of uniform in every year. Rs:100/ month as washing allowances is granted for all employees.Transportation AllowanceEvery employee (except officers) gets Rs: 700/- per month as conveyanceallowance. Officers will get 10% of their basic pay as their Transportation Allowance.CanteenA round the clock canteen is provided for the employees. Company willcharge Rs: 6/day from each employee. The canteen is under the control of company.
  34. 34. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 34Attendance BonusTo increase attendance in the company gives annual bonus of 12 dayswages for every employee who have minimum 268 days presence.Production IncentivesEvery employee gets an amount of Rs: 525/ year as Production Incentivefrom the profit.Leave facilities available in IRECasual Leave - 15 days/ yearSick Leave - 10/year (workers)10 full/20 half (Officers)Earned Leave - 33 days (It can be maximum of 300 days)Surrender Leave - Each employee can surrender maximum 90days/year or 75% of earned leave.Other Benefits750 ml milk/ day4 pears soap/monthOne Turkey or Towel/yearShoes (1 pair)/ yearOne Umbrella/yearHouse loan up to 4.5 LakhsMedical FacilitiesEducational Allowances to workers childrenFestival AllowanceGroup Insurance SchemeHoliday FacilityLeave Travel Concession (LTC)
  35. 35. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 354. TIME OFFICEThere is a full fledged office headed by Deputyadministrative officer. It follows a punch card system. Different allowances of employees aregiven and it is mainly depend on attendance. It is providing according to the report from the timeoffice. The time office is working under the HRM department. The main function of thisdepartment is to maintain attendance records, leave and service records etc. The variousallowances, attendance bonus all these records are maintained by the time office department.Also yearly attendance bonus is given to the employees.Attendance of 265 days/ year - 12 days salaryAttendance of 262 days/ year - 10 days salaryAttendance of 243 days/ year - 07 days salaryStructure of the time office as followsFig No. 10General Manager HRMDpty Admin OfficerSenior AssistantAssistant ClerkAttender
  36. 36. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 36For recording attendance punching system followed here.The attendance register usually keep in time office. The time office collects attendance fromconcerned authority also and match with the punching system and avoiding swapping. Timeoffice has three centers for punching in convenience of employees. In mining area, in dredgingplant also keep mechanical punching machine. For the purpose of salaries the time office issending the records to the finance department. If the finance department asks for any clarificationthey will do it.TRANSFER POLICIES OF IREL, CHAVARATransfer is the movement of an employee from onejob to another without involving any substantial change in his duties, responsibilities. Thecompany is following 4 methods.1. Production Transfer:-When a particular department or job is faced with thepressure of works, its strength may supplement through from other departments. Such transfer’sare generally made where any department is overstaffed and other is short of manpower.2. Replacement Transfer:-A replacement transfer is the transfer of a senior employeeto replace with a junior employee or new one.3. Shift Transfer:-When units in shifts, employees are transferred from oneshift to another on similar job.4. Department Transfer:-Transfer from one department to another within the plant orwith in the organisation.
  37. 37. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 372. MINING DEPARTMENT:-In IRE the raw materials for production process are collected throughmining process. The production process starts with the collection of beach sand from variousplaces. For collecting this beach sand IRE uses the following two methods: Sea Washing andDredging.SEA WASHINGRaw sand is collected from sites where deposits are occurred due to natural beachwashing. Presently IRE owns two sites one at Vellanathuruthu/Ponmana and one at 132 miningarea. There is a heavy mineral deposit over a length of 22.5 Km. They are found over or coastalbelt having an average width of 800 meters. The sea waves deposits the minerals sand on thebeach line and it is collected. Then it is send to the mineral separation plant.DREDGINGPresently IRE, Chavara have two floating dredges (Material Recovery Plant(MRP)) at Karithura and Puthenthura. These plants are constructed with the help of NeumannEquipments Private Limited Australia. Each plant was cost about Rs: 10 Crore as establishmentcost.The plant DWUP used for the mechanised recovery of minerals from the beachsand. The DWUP consist of a floating dredging plant operating hydraulically and electricallywhich could be moved from one place to another based on the requirement. The plant is floatingin an area having a water depth of 6 meters. The sand along with water in the form of slurry (amixture of sand and water) is pumped to the heavy Upgradation equipments. The equipmentconsist of a series of transfer bin rotating screens called Trommer, Spiral Separators, Hydrocyclones, pumps etc all being electrically operated. The DWUP can dredge about 40 to 60 tonesper hour. The raw sand having an average at 40% heavy minerals is fed to the floating plant andupdates it to 85 to 90% mineral content. The waste sand (Quarts) from DWUP is used for backfillthe dredged area.
  38. 38. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 38DEPARTMENT STRUCTURE – MININGHODSection HeadMiningIn-charge Survey In-charge DWCIn-charge DWUPDWUP Operators Mining PersonnelFig No. 11
  39. 39. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 393. PRODUCTION DEPARTMENT:-The act of making goods and services is called production. In everydayspeech ‘Production’ refers to the act of creating something production involves the physicalconversion of raw materials into tangible goods.In IRE raw sand is collected through mining process .The sand is filteredthrough spirals, cones and jigs to produce a bulk concentration of heavy drying, screening,electromagnetic and electrostatic processes and used for separation. Minerals found in coastalareas are collected either manually or mechanical means, productions starts from the miningprocess.DEPARTMENT STRUCTURE – PRODUCTIONHOD PRODUCTIONSH (Production) SH (MIS)SH (Process Control)Shift In-ChargeShift EngineersProduction DeptPersonnelFig No. 12
  40. 40. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 40MINING PROCESSThe mining and processing of beach sand are achieved with a good mixture ofmodern mechanical devices and manual labour. Beach sand is collected from the surface of adepth of a meter with the help of dredgers. For a processing of beach sands, the difference inelectric conductivity, magnetic susceptibility and specific gravity of their constituents are takeninto consideration. The beach sand is treated by well gravity methods using spiral, cones and jigsto produce minerals.IRE collects raw sand in two different ways:1. Sea washing or beach washing2. Mechanical dredgingMINERAL RECOVERY PLANTThe mineral recovery plant consists of a floating dredging plant which could bemoved from one area to another. This is called floating mineral recovery plant. The plant isplaced in an area which has a water depth of 9 meters. The sand along with water is sucked intothe main unit. First the mixture is send to a storage tank called Trammel. Then it is sending forseparation. The waste sand and some quantity of water is pumped out. The mineral content ispumped from the MRP to concentrate Upgradation plant. The MRP dredges about 40-60 tonesper shift.CONCENTRATE UPGRADING PLANT (CUP)The raw sand collected from different sources had different composition. They arefurther upgraded using the CUP. In the Concentrate Upgrading Plant enriches the concentratefrom various sources to above 90% heavy minerals using spiral separators making use of gravitytechniques.MINERAL SEPARATION PLANT (MSP)In the mineral separation plant individual minerals are separated making use of thefollowing four properties of the minerals namely1. Electrical conductivityElectrostatic separation is used in electrical conductivity.
  41. 41. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 412. Magnetic SusceptibilityHigh and low intensity magnetic separators used.3. Density DifferenceFloater separation.4. Surface PropertyFroth floatation.The concentrate from concentrate upgrading plant (CUP) havinguniform composition with above 90% heavy minerals content is dried using Fluidised BedDrier (FBD). This is then subjected to electrostatic separation using different type ofelectrostatic separators. There by it is separated into two fractions namely conducting andnon-conducting fractions.PRODUCTION CAPACITY OF CHAVARA PLANTIlmenite 15000 tonesRutile 9000 tonesZircon 14000 tonesLeucoxene 600 tonesMonazite 600 tonesSillimanite 8000 tonesZircon flour 6500 tonesILMENITEMainly used in the manufacture of Titanium dioxide, a white pigment by sulphateprocess also used in the production of synthetic Rutile and for the production of Ferro Titaniumproducts.RUTILERutile used for coating of welding electrodes and also for the production ofTitanium dioxide pigment by the chloride process and for the production of Titanium TetraChloride for the production of Titanium metal and sponge.Fig No. 13
  42. 42. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 42SILLIMANITESillimanite mainly used in the manufacture of high temperature refractory. It isalso used in ceramic industry.ZIRCONZircon is used in foundries, ceramics and refractory. It is also used in themanufacture of zirconium chemicals, metals, alloys etc.ZIRCON FLOURZircon flour is used in foundries for high temperature castings.MONAZITEMonazite is used for the production of Thorium and rare earth’s base products.
  43. 43. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 43PRODUCTION PROCESS30 T BinBeach wastes Conveyors ScreensPrimaryAspiralsMiddlingCup SpiralsSeavenger SpiralsWaste Middlings TailPlant QIL ConductingIRMSCBMSILMENITEHTSIRMSRutile IRMSTo NC CircuitFloatexSpiralsIRMSFig No. 14
  44. 44. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 444. QUALITY CONTROL DEPARTMENT:-IREL Chavara has got ISO 9001: 2000 Quality Systems established formining, manufacturing and mineral products.One of the primary functions of the quality control department is to ensurequality products according to customer requirements. They harness beach sand inenvironmentally responsible manner to produce minerals and innovative value added products,which are used to make novel products required by customers.Secondly, they are responsible for maintaining consistant quality ofproducts to the satisfaction of the customers through quality management systemimplementation. They also aim at further improvement of product, technology or process.The quality control department is also responsible for maintainingconsistency in quality of raw materials during the processing, intermediate and finished productstages. They make use of chemical and mineralogical testing methods in each stage.In addition to these functions this department also conducts research anddevelopment activities to support flow shed development work and for solution to process relatedproblems.DEPARTMENT STRUCTURE – QUALITY CONTROLFig No. 15Deputy ManagerChemical LaboratorySection Head Q.CSenior Scientific OfficerScientific OfficerDeputy Scientific OfficerAttenders
  45. 45. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 45FUNCTIONSTo ensure that raw materials, in process and finished products confirms tospecified requirements holding compliance with environment , health andsafety requirements.Ensuring compliance to health, safety and environmental requirementsINSPECTION AND TESTING PROCESS DETAILSRaw Sand:-1. The DWUP and HUP output and tailing are tested for total heavy mineralcontent as detailed in quality plan.2. The raw sand feed to the QIL plant ie the dried HUP output is analysed asper quality plan.3. The raw sand being naturally occurring, the specifications are onlydesirable values. The variations in quality of raw sand do not affect thequality of final products. So no reduction of raw sand is resorted to, even ifthe analysis results are not as for the quality plan.4. These tests are carried out only to make proper adjustments of the processparameters to set the final product of specified quality.In-Process Inspection:-In-process inspection of certain intermediate fraction as detailed in thequality plan are carried out as per quality plan. These process fractions are not rejectedeven if the analysis results do not confirm the desireable specifications. The inspection isonly for subsequent adjustments in the process parameters.Finished Products:-1. The products under tests are identified by a yellow board indicating thedate, shift and number of bags. Those products passed the tests are identified by a green boardindicating date, shift and number of bags and rejected are identified as red board indicating “FORREWORK”.
  46. 46. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 462. Inspection and testing of finished products are carried out and records inthe respective record as per quality plan. Only products confirming to the quality as detailed inthe respective quality plan are taken in to stock. Rejected products are maintained withauthorisation of HOD (Q.C). Inspection and test record clearly indicate whether the product isaccepted or rejected.5. STORES AND DESPATCH DEPARTMENT:-The stores act as a store and supply chain, keeping inventory of theproduct produced on the hand and supplying requisite raw materials to the manifold departmenton the other hand.All the items in6 the IRE properly stored by this function area,including finished product inventory. It stores furnace oil, machine parts, office equipments andstationary etc.DEPARTMENT STRUCTURE – STROES & DESPATCHDeputy G MManager StoresStores OfficerClerical StaffWorkerStores OfficerClerical StaffWorkerFig No. 16
  47. 47. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 47Stores fall under two categories1. Capital Items2. Consumable ItemsCapital items, which give return for long term revenueitems or a consumable item means that which are consumable only for a short period.Procurement of items of capital nature is to be made only after the approval by thecompetent authority duly verified by internal auditors with prior conclusion in the capital budget.Stores action is responsible for arranging procurement of all items or purchaserequisitions shall from the basis for arranging procurement or other departments, complete in allrespects and duly approved by the controlled authority. Stores are purchased indigenously andfrom foreign suppliers through the adoption it secure the most competitive tendering system isadopted to secure the most competitive tendering, the most competitive rates and eliminatechance of favour.The worth of production in the plant is currently between 6-7 Crores. Once inevery 3 months inventory statistics is prepared and send to the head office in Mumbai. Storesfollow Bin card and Cardex System. This department has three major functions as followsRECEIPT:-The consignment items are properly verified with the receipts and requested the particulardepartment to made inspection on each items.STORAGE:-The received items are stored in proper locations and preserve them until the issue. Eachitem has its own Bin card. The quantity received, material issued, total remaining are noted in theBin cards.ISSUE:-The issue made in first in first out method. After the receipt of the material internal notefrom the department, the issues are made and same is recorded in the Bin card.INVENTORY CONTROLEUnder the stores department the inventory control function is done. Ifexcess stock is obtained, it is properly informed to the marketing department to promote salesand if any shortage obtained it is properly informed to production department to increase theproduction. Usually ABC inventory control methods is adopted in IRE Chavara for control ofinventories. The principle types of inventories are:-
  48. 48. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 48Raw Material & SupplyGoods in Progress that is work in progressFinished GoodsFor reduction of inventories four steps are taken in the Stores andDespatch Department. They are doing computerization, codification, standardization and valueaddition. All the process in stores departments are computerised and inventory managementsoftware is used for this purpose. Coding is given to all inventories. For this, alphanumericalcode is used. Material coding is help to realise what kind of inventories are stored. And locationcoding helps to find out where it is stored. By the use of standardisation, physical verification ofinventories are to be done and to be check whether the invoice number and purchase order areequal.DESPATCH SECTIONDespatch Section controls the transportation of the finished products o theoutside company. When a customer made a complete settlement of money for purchasing of aparticular product from the company the marketing department placed a delivery order to thedespatch department. The despatch department then prepares an invoice and gave a copy to thecustomer. This department also prepares gate pass and state government declaration sheet.
  49. 49. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 496. INTERNAL AUDIT DEPARTMENT:-Chief General Manager is directly looking after the functioning ofInternal Audit Department. Manager (Internal Audit) is the head of the department. There areinternal audit officers and administrative officers other than accountants and clerks working inthis department.Internal audit department is not regular department in many of thecompanies. But in IREL this department is holding special privilege of auditing in to everyaccounting matters of IREL. It is functioning in accordance with finance department. It isnecessary to get audit approved from internal audit department for the finalisation of anythingconcerned to accounts. The company management is approving all other accounts in therecommendation of this department.DEPARTMENT STRUCTURE – INTERNAL AUDITManagerInternal Audit OfficerClerks AccountantsFig No. 17
  50. 50. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 50FUNCTIONS1. Auditing all the financial transactions of the company.2. Taking corrective measures to rectify audit objections.3. Making report to Chief General Manager and Board of Directors.4. Make sure that every deeds of finance department is in accordance withthe accounting policies of the companies.5. To participate in the functioning of store purchase committee.6. To check the legal validity of the financial matters of projects committedby IRE Ltd.All the relevant policies of the company are as the basic policies ofthis department. Internal Audit Department is auditing the accounts quarterly and sending reportto Chief General Manager regularly.
  51. 51. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 517. RESEARCH & DEVELOPMENT DEPARTMENT:-The company has a well equipped Research andDevelopment facilities to support flow sheet development works and for solutions to processrelated problems. The laboratory is equipped with lab models of Magnetic Separator, HighTension Separators, Wet Shaking Tables and Froth Floatation Equipment etc.DEPARTMENT STRUCTURE – RESEARCH & DEVELOPMENTFUNCTIONS1. New product development.2. New compound development.3. Selection & Evaluation of alternative method.4. Testing of new products.5. To analysis and assist plants in problem solving.6. Ensure quality of raw materials and finished products.7. Maintain Quality.8. Research & Development attempts.HOD R & DSection HeadR & D Dept PersonnelFig No. 18
  52. 52. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 52The department has well mentioned quality objectives andwell practiced quality assurance, quality improvement program. The department usesmineralogical testing methods for maintaining consistency in quality of raw materials, finishedproducts and work in progress. The checking of minerals quality is done on a batch basis.8. PROJECT & MAINTANANCE DEPARTMENT:-This section is looking after the projects and maintenanceof technological aspects of affairs of the company. This is a section in which mechanical expertsare working on different projects. This section takes over the responsibility of various projectstaken up by IRE Ltd management. They are making efforts to expand the area of performance ofthe company.FUNCTIONS1. To carry out preventive Maintenance to ensure continuous capabilityand to attend breakdown maintenance if any.2. Projects on mining area of IREL.3. Projects on technological development.4. Project on quality assurance.
  53. 53. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 53DEPARTMENT STRUCTURE – PROJECT & MAINTANANCE DEPARTMENTUnit HeadHOD MaintananceSHHUPSHAutoSHMechSHDWUP ISHDWUP IISHDWUP IIISHElec MSPSHElec HUPSHElec.SHMSP IISHMSP IMaintanance PersonnelFig No. 19
  54. 54. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 549. MARKETING & SALES DEPARTMENT:-Marketing is a social process by which individuals and groupsobtain what they need and wants through creating, offering and freely exchanging products andservices of value with others. It is the art of selling products. Marketing department isfunctioning under the control of General Manager of marketing department.Marketing occupies an important position in the organisation of any business unit.Marketing functions are not limited to the function of buying and selling but storage, risk bearingand after sales services etc. marketing is a vital connection link between the producer andcustomer.The marketing section in the IRE is under the direct control of chief GeneralManager and this section is headed by the deputy General Manager in his job. The marketingactivities in the company are indirectly linked with the sales section.IRE has the monopoly in the field of rare earth products. IRE Ltd, Chavara isengaged in the production of minerals such as Illuminate, Rutile, Zircon, Sillimanite, and BrownIlluminate from naturally available beach sand products. It also produces value added productslike Zirflour, Microzir. On specific requirements of customers the company also suppliesSillimanite powder by subcontracting. Among these Illuminate, Rutile, Zircon, Brown Illuminateare categorized as “Scheduled Minerals” for which the customer is required to obtain licensefrom the Department of Atomic Energy (DAE) Mumbai for their purchase.Off late, more stress was given as the marketing activities of IRE, by thecompany, because of competition, which is growing in the international market and also in Indianmarket. A new era has been put up in the company for this purpose.The bye products of IRE are Zirflour and Monazite. They are mainly purchase bythe Kundara ceramics for the manufacturing of ceramics. The main customers of IRE are theGovernment of India and other private company. The main foreign customers are USA, Canada,UK, France, West Germany, Japan etc.OBJECTIVES OF MARKETING DEPARTMENTMaximum turnoverMaximum profitMaximum customer satisfactionMaximum customer relationship
  55. 55. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 55The chief General Manager of IRE is having the control of topmost level inmarketing department of this unit. There are four superintendents and a clerk engaged in the salesdepartment. IRE Ltd is working under the administrative control of Department of AtomicEnergy. The head office does the pricing of products. The customers of IRE Ltd are mainlyheavy industries like plant, glass, refineries, ceramics etc for bulk purchases customer andprovided discount.SALES AND DISTRIBUTION SYSTEMHere the organisation has been enjoying monopoly. That’s the reason why theydon’t want to make a distribution network. Direct selling is the main system of organisation. Thecustomer primarily pays the full amount as demand draft (DD) in advance and then the companygives the products.For domestic sales, order are received as1. Through head office2. Directly from the customers3. Transferred from the units of IREAll (except Zirflour, Microzir and Sillimanite powder) are dispatched againstpermits obtained after payment of prescribed royalty by IRE in advance to the department ifmining and geology, government of Kerala.Starting with general condition for sales, majority of the customers place ordersdirectly with Chavara. Sometimes head office also fixes quota customers wise if necessary, forthe supply of minerals and intimates time to time. If all the formalities are completed deliveryinstructions are given by the sales department to stores for delivery of the materials to thecustomers.ExportingExporting contract between the seller (IRE) and the buyer (customer) is finalizedat the head office and intimates Chavara regarding the export contract along with the copies ofagreement, purchase order, proposed loading schedule and many other specific instructions forthe execution of the order. Chavara sends samples and product specification to the customer ifrequired by head office/ buyer.Exporting carried out through Neendakara but now its through Cochin port(Bagged Cargo only) shipment through Cochin port is done by C&S agents appointed by seller.
  56. 56. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 56PricingPricing is a very crucial decision in marketing management. The objective of thefirm is to get maximum profit. This depends upon the correct decision in pricing. Pricing refers tothe process of fixing the price (money value) of a product or service; pricing is an importantfunction in marketing because it determines the sales volume and the amount of profit. A productis acceptable to the customer when it is reasonable priced. A sound pricing policy helps to satisfycustomers and to yield profit. Determination of price is influenced by large number of factorssuch as cost of production, degree of competition, nature of the product, pricing objectives andpolicies of the firm etc.Samples to the customersSamples are sending to the customers on their request or as per the instructionsfrom the head office for their evaluation of sustainability for their requirements. Free samples aresend to the customers as per the following procedures.Up to 500 Gms: head of the department (marketing) intimates section head (QC) to preparesamples of required quantity along with the gate pass.501 Gms to 1 kg: head of the department (marketing) prior approval from the unit head andfollows the above procedures.Above 1 kg: head office approval with information to unit head and follows the above procedure.Customer visitEvery quarter, 5 customers are selected for a visit to know prevailing marketconditions.Customer feedbackEvery year customer feedback questionnaires are circulated to the customers andfeedback is compiled for chalking and out suitable strategy for the future marketing.
  57. 57. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 57The sales department maintains the following recordsContract review checklist for domestic sale.Government of Kerala department of mining and geology and advance remittance andcorresponding permit register.QuotationsPerforma invoicePayment registersDAE license registerPriority registersDelivery registersSales registerShipping registerDaily statement of production , sales and dispatchQuarterly statement regarding exportMonthly report to cabinetProduction, sale and stock of minerals (monthly)Performa for submitting quarterly export performance to federation of Indian exportorganisationCOB licenseGeology permit registerC-form, D-form, form18 registerPrice list of mineralsStatement showing production, sales and value (Quarterly)Contract review checklist for exportsCash receiptsBank receipt voucherDaily information to sales 26, pending orders of minerals (daily)DD registerGate passEnquiry/order/amendment from partiesCustomer feedback questionnairesCustomer file
  58. 58. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 5810. FINANCE DEPARTMENT:-Business finance is concerned with the acquisition andutilization of funds required to meet the financial needs of a business enterprise. Financing is theprocess of planning, acquiring, utilizing and controlling the funds used in any kind of business.Finance is the life blood of business. Every enterprise or company requires finance to start thework and grow.A company generally requires large amount of capital. A public company canraise huge capital through issue of shares. In addition to share capital it can utilize retained profitin the form of reserves. It can raise borrowed capital through denture and loans. Long term loanscan be obtained from financial institutions. Short term loans are available from commercialbanks.DEPARTMENT STRUCTURE – FINANCEChief General ManagerFinanceDpty General ManagerFinanceSenior Finance OfficerDpty Finance OfficerAssistantsFig No. 20
  59. 59. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 59SOURCES OF A COMPANY1. On the basis of time.2. On the basis of purpose or use.3. On the basis of source of finance.4. On the basis of risk.Finance refers to money, cash or hand available for the operation ofbusiness. Finance may do defined as the requirement of funds wanted. It is the life blood ofbusiness activity. The business pulsates with life only through finance. Finance refers to money,cash or hand available for the operation of business. Financial management will includeplanning, organising, directing and controlling.The main functions of this department are:-1. To collect all the receipts and make all the payments.2. To record all the transactions and prepare the final accounts.3. Maintain the accounts as per the provisions of the section 20(g) of the Companies Act1956.4. Provide depreciation at the rate prescribed in schedule 14 of the Companies Act 1956, ona straight line method.5. To account excise duty on goods manufactured when it is dispatched.6. To ascertain the accrued gratuity liability of the company on the date of balance sheet.7. To value finished goods at cost or market price whichever is lower, stock of rawmaterials, spares and chemicals are valued at weighted average method.8. Treat the claims against the company which are not admitted as contingent liability.
  60. 60. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 60CHIEF GENERAL MANAGERThe finance department is headed by the Chief General Manager(Finance). A Deputy General Manager (Finance) is there to assist the Chief General Manager inthe operations of the department. In addition to them the department consists of 3 senior financeofficers, 8 deputy officers and attenders.AUTHORITY, RESPONSIBILITIES AND ROLES:-AUTHORITYApproval of policy, objective and targets.Approval of apex manual.Defining responsibilities and authority of head of departments, managementrepresentatives.Authorizing various committeesApproval training programs of financial commitment.Authorization of decision taken at review meeting such as safety andenvironmental protection committee, environment management customer serviceand complaint redeemed and protection meetings.RESPONSIBILITIESOverall responsibility for health and safety of IRE, Chavara unit.Claiming the review meetings.Responsibility of the head office from time to time.Ensuring that unit has organized celebration including those related to health,safety and environment through concerned department.Providing resources for the implementation main tenance and continuedimprovement of management systems (in consultation with HO required).
  61. 61. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 61Implementation of directives received from HO / statutory agencies.Ensuring smooth progress of project (including feedback of HO on the program).ROLESEnsuring smooth day to day functioning organisation through concerned HOD /section head.Role as head of the unit in the health, safety and environment related celebration.Participation in emergency evaluation (Both mock / actual)Compliance to safety related requirements including use of personal protectionequipments as a role model for others.
  62. 62. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 6211. MEDICAL DEPARTMENT:-An effective and efficient medical department is functioning inIREL Chavara. Every family member of the employee is eligible for free attendance andtreatment in the dispensary. Cases beyond the scope of the dispensary will be referred to majorhospitals which are centered in Kollam and Karunagappally. The whole payment is such casesare done by the company itself. The dispensary is working around the clock.FUNCTIONS1. To carryout medical examination of employees and their family members.2. Examining compliance to environmental requirements.Senior Manager (Medical) is the top most authority of the Medicaldepartment. Senior Manager is followed by a Section Head/Lady Doctor. The departmentcomprises of two Doctors, three Pharmacists, three Nurses/Compounders, Laboratory Technicianand an Ambulance Driver.DEPARTMENT STRUCTURE - MEDICALHOD HRMHOD MEDICALSH MEDICALLady DoctorNurses/CompounderPharmacistLaboratoryTechnicianAmbulance DriverFig No. 21
  63. 63. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 63PROCESS INVOLVED IN MEDICAL DEPARTMENTA. Out Patient Service:a) Employees and their departments are provided free medicalservices. For this each employee has been allotted a personal dispensary file in which name ofthe dependants are included as per the family card issued by the welfare department. Properrecording of the ailment, investigation and treatment of the employees and the dependants areentered in the personal dispensary file. Unfit and fit certificate are issued by the medical officersin the prescribed form for availing sick leave and for rejoining the duty after sick leave.b) Patients who require specialist’s opinion/ detailed investigation aresent to recognised hospitals/govt. hospitals/ approved laboratories with a reference letter. List ofapproved hospitals/ laboratories as approved by HO is maintained by HOD (Medical). Patientsare taken to recognised hospital only with the reference form issued by medical officer. In theabsence of company medical officer, patients are issued a temporary reference card valid for oneday by the duty Pharmacist/Nurse for immediate admission incase of emergency and within 24Hrs the reference card issued by the medical officer is to be collected by the employee.B. Occupational Health Service (OHS):-Pre-employment Medical Examination:-Normally recruited employees before joining aredirected to undergo a medical examination by the medical officer. Medical examination is carriedout as per the pre-employment medical examination report. The pre-employment medicalexamination report is send to the HOD (HRM) for implementing the recommendation of theHOD (Medical).C. Periodical Medical Examination:-In accordance with Atomic Energy Regulatory Board (AERB)periodical medical examination for all canteen workers and clarified radiation workers is carriedout once in a year and for other radiation workers and other general workers, it is carried outonce in five years. Employees are directed to HOD (Medical) as per the list notified by theAdministrative section. These who are exposed to high noise, loss of hearing bent are alsoconducted and feedback is given to the concerned department.
  64. 64. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 64D. Pre-retirement Medical Examination:-Concerned employee is given intimation from administrationsection at least two months before the date of retirement to carryout pre-retirement medicalexamination with a copy to HOD (Medical). Based on this, medical examination is carried outone month before the retirement of every employee and necessary advice is given to theemployee for his future health maintenance.
  65. 65. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 6512. SECURITY DEPARTMENT:-Security of the company assets and premises is vested in the handsof the staffs of security department. The department is lead by Security Manager and he isassisted by 6 Head Security Officers and 26 Security Guards.DEPARTMENT STRUCTURE – SECURITYFUNCTIONS1. To give security to the company and its assets.2. To monitor the entry of employees and visitors.3. According to ISO procedures they maintain the discipline of theemployees, their uniform etc.There are 32 security personnel in total. The security departmentalso gives protection to company equipments in mining area. 7 persons are deployed atPuthenthura, 7 at Vellanathuruthu and 16 at the plant itself.Two major threats presents in IREL are sabotage and theft. Toprevent sabotage there is a control room and it accessible at every time. In case of emergency thesystems will automatically shutdown and emergency alarm will blow. At that time all theemployees are required to assemble in the assembly points. Another security problem faced byIREL is theft. There is no clear boundary wall for the company. This may encourage persons totake away company assets without permission.General ManagerHRMManager SecurityHead Security OfficersSecurity GuardsFig No. 22
  66. 66. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 6613. SAFETY AND ENVIRONMENT DEPARTMENT:-In the present day industrial scenario all the industries had acceptedthe fact that safely improves productivity.IREL Chavara has always been in the forefront in ensuring safety,welfare and better working environment to all its employees. Their safety slogan is“Let everyday be a safe day”DEPARTMENT STRUCTURE – SAFETY & ENVIRONMENTSH Safety &EnvironmentSH Fire ProtectionS & E deptPersonnelHOD S & EFig No. 23
  67. 67. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 67MISSION AND POLICY OF THE DEPARTMENTMISSIONThe mission of IREL is to be a major supplier of beach sand minerals and rareearth compounds in the domestic and international market, develop and produce chemicals ofstrategic importance, value addition with due regard to resources utilization and safety protection.Consistent with this mission, IREL envisages a safety and environment protectionpolicy that provides a safety working environment to prevent injury and ill health to itsemployees. It also ensures environmental protection by minimizing environmental input that mayarise from its operations and provide appropriate environmental plans to maintain ecologicalbalance and above all recognizes the use for safety culture man organisation to enhance theawareness and commitment of all employees to safety.POLICYIREL purpose to update and review the safety policy periodically taking intoconsideration its industrial experiences advances in the technology and regulatory requirements.ENVIRONMENTAL POLICYIREL Chavara is committed to protect, conserve and improve the environment inwhich it operates for the continued existence in the business throughoutConservation of natural resourcesMinimising pollutionCompliance to applicable environmental rules and corporate guidelines,periodical health monitoring of employees and creation of environmentalawareness among employees, customers and suppliers.
  68. 68. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 68SAFETY GUIDEIREL Chavara follows strict safety guidelines, which are given in the company’ssafety guide. Safety team will update the safety guide as per the requirement to throw more clearlight on the processes as well as equipments engaged in the plant, including procedures to ensurethe safety of both men and machineryThere are Do’s and Don’ts enlisted in this guide and this will be quite helpful inaverting the slightest possibility of accidents.SAFETY GUIDELINESIn order to achieve the policy objective certain guidelines are used some of themare as follows.CORPORATE LEVEL SAFETYAn officer of the rank General Manager to co-ordinate at the corporate office allsafety environment and training activities of various units and takes necessarysteps for effective implementation of this policy.GM (S&E) assisted by three senior officers at the head quarters on each of thesafety, environment and training.The corporate safety setup has been provided with adequate administration /financial support for coordinating safety policy.He liaisons with various outside agencies like Atomic Energy regulatory boardSARCOP health, physics division of BARC, DGM of mines safety, ministry ofenvironment and forest etc for fulfilling the statutory requirements.He assesses the training needs for various areas and granges for differentcategories of employees.He interacts with safety teams / experts for carrying out safety audit / environmentaudits and assessment of safety performance for award of shield etc.
  69. 69. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 69UNIT LEVEL SAFETY SETUPThe head of each unit will be executive director / chief / GM.He will be ex-office chairman of the plant level safety and environment protectioncommittee which will review the monthly safety status of the plant.He will implement all the applicable statutory provisions of safety andenvironmental control in the unit.He will nominate senior level officer as safety and environmental control officerwho will look after the safety and environmental control aspects of the unit.He will ensure that operating procedures are followed strictly and technicalspecifications are not violated.SAFETY AND ENVIRONMENTAL PROTECTION COMMITTEEThe term of members of the committee will be two years and the committeemembers will be meeting once in a month.The committee will organize safety day / environmental day / fire day and minessafety week annually and hold competition among the employees relating tosafety and environment during the celebrations.The committee will discuss the measures against the unsafe conditions andpractices in the mine / plant as pointed out in the report of workmen’s inspectors.The committee will consider safety and health measures to be taken beforecommencement of operations of any new electrical / mechanical equipmentproposes.Summary of minutes of the meeting will be sent to the GM (S&E) regulatory.
  70. 70. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 70STANDING ORDER FOR WORKMEN CONCERNING SAFETYIREL standing orders for workmen also envisages the safety of the organisationand relevant clauses.PERSONAL PROTECTIVE EQUIPMENTSIt is divided into two categoriesPersonal protective equipment for the various parts of the body i.e. head, eye, ears,face, hand, arms.Respiratory protective equipment required when workers exposed to atmosphericcontaminants like dust, fuel, gases and chemicals let off in the air in the dangerousconcentration.PROTECTION EQUIPMENTS USED ARE:Head protectiveSafety shoesSafety belts and lifelinesDust respiratorsEyes and face protectionEar muffsApronsGlovesRespiratory protection devices
  71. 71. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 7114. PURCHASE DEPARTMENT:-The main function of purchase department is procurement ofmaterials at competitive price. All items including real materials other than raw sand arepurchased by this department. In IRE Ltd the purchase department had prime importance.Formalities of purchase1. Float enquiry to the right source2. Scrutinize quotation3. Obtaining approval of the finance department4. Release an order5. Follow up receipt at the store6. Assistance to give payment in timeFormalities of placing an order1. Origination of intent2. Tender enquires3. Opening of tender on the data mentioned4. Analysis of all tender5. Technical evaluation of the tender6. Selection of the best one7. Negotiation with the party needed8. Approval of the selected tender9. Order placing10. Follow up
  72. 72. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 7215. CIVIL DEPARTMENT:-Maintenance has a direct impact on everything that affects theoverall health and welfare of the organisation. A sound maintenance strategy should therefore beconsidered a valuable tool used to assess equipment capability and the continuous improvementefforts of asset performance.Civil department consist of deputy manager (civil), two deputy officers and thework force. They frequently monitor company structures and maintain them properly. In case ofnew projects, the base infrastructure has to be erected by this department.DEPARTMENT STRUCTURE – CIVILHOD (Civil)Section Head(Civil)Civil DeptPersonnelFig No. 24
  73. 73. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 73SWOT AnalysisSTRENGTHSHighly skilled managers and experienced workmen having excellent knowledgeand experience about mining and production process.Constant Upgradation of technology.A strong and symbiotic relationship between the top level management and thelower level employees.Technological collaboration with the Australian company, ROCHE, one of thelargest mineral technology providers in the world.Abundance of raw materials in the company premises itself.Support from government of India and the department of atomic energy.High concern towards the employees and environment.
  74. 74. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 74WEAKNESSMining problem.Diminishing supply of raw sand.The inability of the management to control effectively, the resistance raised by thelocal people in form crises.Excess number of civil workers.High labour charges.Due to monopoly promotional activities are less.Decision making process is highly time consuming and complicated.Shortage of power supply.
  75. 75. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 75OPPORTUNITIESHigh demand for products.Growing demand for Titanium, Zircon, Thorium, Rutile, Ilmenite in internationalmarket.Faster growth rate of markets in Asian countries where extraction facilities arelimited.The recent efforts to tie-up with other mining companies like KMML, Chavara.The favorable state government policies like prohibiting the entry of privatecompanies into the mining sector.As a strategically important company it is always backed by the centralgovernment.
  76. 76. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 76THREATSEntry of private players such as TATA group into the area of black sand mining.Over intervention of external political groups in company affairs.Fluctuating in the value of currency which adversely affects the export income.Increasing transportation cost.Protect form environment activists.Rapid technological changes in production process.Changes in government policies.
  77. 77. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 77FINDINGSThe employees were satisfied with the welfare policies which are in practice and the scale ofpay at present.Majority of the workmen were well experienced and possess great amount of knowledgeparticularly relating to the mining and production process.The managers were overloaded with work but they perform well above the expectations.The intervention by the external political parties continues to be a disturbance in formulatinglabour policies.The company has a strong commitment towards the society.
  78. 78. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 78SUGGESTIONS AND RECOMMENDATIONSIREL should take advantage of the growing demand for heavy minerals by increasing theproduction.The management should sustain the faith of the local people by constantlycommunicating and explaining the company’s policies to them. The trust of the localpeople can be ensured and sustained by constant interaction and communication withthem. The company can achieve them by undertaking more socially responsible activities.This may be in the form of medical facilities running schools, assistance at the time of seaerosion and trawling ban. They can also provide water and electricity supply to the localpeople.The company should try to minimize the external interventions of various politicalparties.The company must take full use of the favorable government policies at present.
  79. 79. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 79CONCLUSIONIREL is one among well performing companies in Kerala, engaged in the processof processing rare earth products available among the coastal belts. IRE is reaching newboundaries with its performance. IRE was incorporated on 18thaugust 1950 as a private limitedcompany under the Indian company’s act of 1913 jointly by the government of India and thegovernment of Travancore Cochin. In 1951, IREL became a public sector undertaking and twomineral separation plants, one at Manavalakurichi in Tamilnadu (1967) and the other at Chavarain Kerala state (1970) were setup.The organisation study at IRE ltd was an unforgettable experience. Theorganizational atmosphere prevailing at IRE is not that of a public sector unit. The concern forthe environment and social responsibility are worth studying. The study helped in having apractical exposure to real practice in organisation. The study provides insight into the functioningand coordination of departments in an effective organization.
  80. 80. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 80BALANCESHEET AS AT 31.03.200931.03.2009(In Crores)31.03.2008(In Crores)I. Sources of Funds1. Shareholders Funda. Capitalb. Reserve & Surplus2. Loan fundsSecured LoanUnsecured LoansII. Application of Funds1. Fixed Assetsa. Gross blockb. Less Depreciationc. Net blockd. Capital works in progresse. Assets pending disposal2. Investments3. Deferred Tax Assets (Net)4. Current Assets, loans & AdvancesCurrent AssetsInventoriesSundry DebtorsCash & Bank BalanceOther current assetsLoans & Advances8636.5038,629.23-3,320.4250,586.1543,955.8024,495.9319,459.87709.820.4920,169.581.421603.986020.81833.4827281.301485.227577.7643,198.578636.5034,973.319.314,427.2348,046.3543,062.7822,801.7420,261.04672.2115.7420,948.911258.51523.345500.082641.6123381.71600.667103.1939,227.25Appendices
  81. 81. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 81Less Current Liabilities & Provisionsa. Current Liabilitiesb. ProvisionsNet Current Assets5. Miscellaneous Expenditure5631.438908.3514,539.7828,658.74152.386134.587893.9514,028.5325,198.72116.79Total 50,586.15 48046.35
  82. 82. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 82PROFIT AND LOSS A/C FOR THE YEAR ENDED 31.03.200931.03.2009 31.03.2008I. INCOMEGross SaleLess : Excise dutyCompensation for processingThoriumIncrease / Decrease in StockOther IncomeII. EXPENDITUREMaterials ConsumedEmployees Remunerationand BenefitsManufacturing and otherBenefitsInterestDepreciationCapital expenditure not -represented by the company -Written off.III. Profit before extraordinary itemsprior period adjustments andtaxation.Extraordinary items as priorperiod adjustmentsProfit before TaxProvision for Tax33,669.8213.8333,655.991,443.8450.463,873.743,790.8914,864.699,850.06233.361,973.30-30,712.308,311.73(23.68)8,288.052,611.2529,625.0227.7729,597.251,918.25778.742,662.293,045.2411,449.2110,009.49219.292,164.1012.4026,899.738,056.8014,818.9822,875.787,318.29
  83. 83. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 83Profit after TaxBalance brought forwardIV. Profit available for appropriationAppropriation:-Proposed DividendTax on DividendTransfer to General ReserveBalance Carried to Balancesheet5,676.8033,263.0538,939.851,727.30293.551,000.0035,919.0038,939.8515,557.4921,226.4136,783.901,727.30293.551,500.0033,263.0536,783.90
  84. 84. Organisation Study on IREL ChavaraCaarmel Engineering College, Pathanamthitta 84BIBLIOGRAPHY1. C.R. Kothari – Research Methodology methods and Techniques.2. Prasad L.M – Principals and practice of management.3. Kottler Philip – Marketing Management.4. Rejimon.P.M – Indian rare earth is going to expand.5. Rejimon.P.M – 50 Crores rupees expansion program in IRE.6. IREL Broucher – Apex manual and departmental procedures of IREL.7. http://www.indianrareearths.com8. http://www.irel.gov.in9. Annual Reports and Journals

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