Organizational

study in TCC

PROJECT REPORT

ON

ORGANIZATION STUDY

Report submitting to MATS INSTITUTE OF MANAGEMENT AND

ENTREPRENERUSHIP In partial fulfilment of the requirements for the

PGDBM 1ST TERM, 2008-2009

SUBMITTED BY:

SHIJU JOSE

REGISTER NO: D-40

UNDER THE GUIDANCE OF

DR. SUDHARSHAN

MATS SCHOOL OF BUSINESS & IT

BANGALORE

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ACKNOWLEDGEMENT

First and foremost, I thank the Lord Almighty for his perpetual showers of blessings,
which led to the successful completion of my project.

I take this opportunity to express my deep sense of gratitude to all those who have
helped me throughout this organizational study. It gives me immense pleasure to
acknowledge all those who have rendered encouragement and support for the successful
completion of this work.

I would like to convey my sincere thanks for giving me proper directions and
suggestions and make use of this opportunity to express my heartfelt gratitude to
Mr K.M.Varkey, (Project manager, TCC) for providing me all the faculties for making my
project a successful one.

I express my deep sense of gratitude to Dr.Sudharshan the faculty member of MATS for
encouraging and inspiring me for developing the project.

Finally I wish to express my wholehearted thanks to my parents, friends and well

wishers who extended their help in one way or other in the preparation of my project.

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DECLARATION

I hereby declare that the project report entitled “Organizational Study of Travancore
Cochin Chemicals”. Submitted in partial fulfilment of the requirements for the award of
the degree of PGDM is a record of bonafide research carried out by me under the guidance
of Dr Sudharshan, MATS- Bangalore and no part of it has been submitted for any other
degree or diploma.

Place: Bangalore Shiju Jose

Date:

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CONTENT

1. INTRODUCTION TO THE STUDY AND INDUSTRY

PROFILE
• Global scenario
• Indian scenario
• Key players in the industry
• PEST analysis
• Porter 5 force analysis

2. COMPANY PROFILE
• Background and history
• The vision, mission, objectives, goals, SWOT
analysis
• Products and markets

3. ORGANISATIONAL DESIGN

4. BUSINESS LEVEL FUNCTIONS

• Operation Department
• Human resource department
• Marketing department
• Personnel Department
• Finance department
• Technical and service department
• Materials department
• Engineering department

5. FINDINGS, SUGGESTION AND CONCLUSION

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CHAPTER 1: INTRODUCTION TO THE STUDY

AND INDUSTRY PROFILE

Introduction to the study

The main aim of the organizational study is to acquire the knowledge regarding the
functional as well as the management aspects of an organization. This project is an
organizational study at THE TRAVANCORE COCHIN CHEMICALS LIMITED,
COCHIN, KERALA.

CONCEPT OF ORGANIZATION

Organization is the process of;

1. Identifying and grouping the work to be performed
2. Defining and delegating responsibility and authority
3. Establishing the relationship for the purpose of enabling people to work efficiency
together in accomplishing objectives-Louis A. Allen.

PRINCIPLES OF ORGANIZATION
Principle means the theoretical basis on which something is built up. The
theoretical basis is formulated from fundamental truth. Some of the important principles to
be followed for developing round and efficient organizations are:
• Principle of unity of objective.
• Principle of specification.
• Principle of co-ordination.
• Principle of unity of command.
• Principle of span of control.
• Principle of exception.
• Principle of flexibility.
• Principle of simplicity.
• Principle of communication.

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• Principle of efficiency.

REQUSITIES OF A GOOD ORGANISATION

• The objective are to be clear, candid and well defined and the organization must
have a capacity to achieve it.
• All activities therein must be implemented easily and effectively.
• All activities therein must be properly coordinated.
• Organization must be complete; it should include all essential activities.
• The communication system within the organization must be effective.
• The span of control at all level must be reasonable.
• There should be provisions for future expansion, whenever needed.
• All activities and functions should follow defined procedures.
• The organization must be such that it promotes the morality of employees.
• There should be a proper diversion of authority and responsibility.

Importance of an organization
Significance of the organization in any institution may be discussed as below:

(i) It ensures optimum use of human resources: It establishes persons with

different interest’s skills, knowledge and viewpoints.
(ii) It stimulates creativity: A sound and well conceived organization structure is
the source of creative thinking and initiation of new ideas.
(iii) Use of improved technology: A good organization provides for optimum
use of technological improvements.
(iv) Co-ordination in the enterprise: In a good organization, the different
departments perform their functions in a closely related manner.
(V)Executive development: The pattern of an organization structure has strong
influence on the development of executives.

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(v) It ensures cooperation among workers: A good organization promotes mutual

goodwill and cooperation among workers also.

SCOPE OF ORGANISATIONAL STUDY

The study focus on the overall structure of the organization. In this study, the researcher
analyzed the overall functioning of the firm and also the financial performance of the
enterprise. The researcher made a moderate attempt to have the SWOT analysis of the
study.

METHODOLOGY OF ORGANISATIONAL STUDY

PRIMARY DATA- Primary data were collected from discussions with the Managerial
head of the various departments.
SECONDARY DATA- Secondary data were obtained from the annual report, from the
website and other concerned books.

LIMITATIONS OF ORGANISATIONAL STUDY

Difficulty in meeting with all the Top level Officials.

Certain areas are restricted, so a detailed study is not possible.
Time allotted for the study is insufficient.

INDUSTRY PROFILE

GLOBAL SCENARIO

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The chlor– alkali industries are growing faster in the world. The chemical industry plays a
vital role in the production of many manufactured goods. Many products of the industry
will include detergents, drugs, fertilizers, food preservatives, flavoring and paper products.
The increased production of paper, aluminum, soap and detergent naturally leads to
increased requirement of caustic soda in the world scenario. The green peace movement in
seeking the phase out of chlorine usage, especially the CFC compounds. This has resulted
in closing down of some of the chlorine industries in Europe and North American countries.
There is no doubt that chlorine is one of the most important basic raw materials for many
goods and processes that improve the quality of modern life. Chlorine-based products and
technologies help us save energy, reduce waste and pollution, cure diseases or provide
clean water. Without chlorine, innovation in fundamental sectors like healthcare,
construction and transportation would be impossible

With the drop in international production, the international price of caustic soda is steadily
growing up. The caustic which was sold for 50$/ tone has grown up to the 300$/ tone now.
The international markets are opening in the context of demand supply prevailing from time
to time, situation of surplus and shortage are cyclical as a result of which international
prices tend to be highly volatile. Though the demand for chlorine is growing fast, the
demand of caustic soda is not so promising. Hence the units in the gulf and western
countries are selling caustic soda at a cheaper price.

CONSUMERS

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Major countries producing Caustic soda

• USA
• China
• Japan
• Germany
• France
• Russia
• Canada
• India

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TECHNOLOGY PROVIDER
• Asahi Glass company(Japan)
• Uhde India Ltd
• ABB Ltd
• E.I.DuPont Pvt Ltd
• De Nora India
• Alfa Laval(India) Ltd

INDIAN SCENARIO
The chlor – alkali industry is around 80 years old, has grown into 25.48 million tones per
annum capacity and is on a higher growth trajectory in India. With the expected GDP
growth, the manufacturing sector is set to grow at a higher pace and consequently, the
demand for basic chemical shall register a sharp increase. The manufacturing of caustic
soda was started during 1940’s in the country. The growth was rather slow during 1960’s
and after that the growth picked up substantially. Today there are about 38 firms, which
manufacture caustic soda, which serves the demand of 1.4 million tones per annum,
operating at 80% capacity. In India there are about 90% plants are operating with
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membrane cell technology. Under CREP, the industry has also volunteered for conversion
of remaining mercury plants into membrane cell technology by 2012. Gujarat Alkalies and
Chemicals is the largest manufacturer of Caustic Soda in India with 16% market share. Of
the estimated installed capacity of 20.15 lakh tonnes in the country.

Major south Indian chlor-Alkali units

1. CHEMPLAST, Tamil Nadu
2. DCW, Tamil Nadu
3. TCP, Tamil Nadu
4. BILT, Karnataka
5. SRRAC, Andhra Pradesh
6. ANDHRA SUGARS, Andhra Pradesh
7. CHEMFAB, Pondicherry
8. TCC, Kerala

STATE SCENARIO
Caustic soda is one of the basic inorganic chemicals manufactured from common salt.
There are 4 products in the manufacturing of caustic soda, chlorine and hydro chloric acid,
and hypo chlorite, last one is a bye product.
In kerala, TCC is the only chlor-alkali plant. 175 tones per day, caustic soda is produced by
this company and used in the manufacture of soaps, textile and plastic etc. There are many
small-scale industries in the state, which consumes caustic soda for the production of soaps,
plastics and textiles.

PEST ANALYSIS
The Chlor- alkali industry, make up the third-largest volume sector in the global chemical
industry. PEST analysis is concerned with the environmental influences on the industry. It
refers to the Political, Economic, Social and Technological factor that affects the strategic
development of a business

POLITICAL FACTORS
The continually counter-cyclical co-product relationship between the two chemicals, the
relatively stable roles played by key industry players, the shifting regulatory situation in
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different regions of the world (especially for chlorine), and the impact on chloralkali prices
of substantially higher energy prices in the past year. An unstable political factor does
affect the profitability and performance of the Chlor-Alkali industry.

ECONOMIAL FACTORS
The economic imbalance in the country has its impact on the organizational growth.
But this affect is not very significant. Their core raw materials are electricity, water
and salt. Salt is imported from Middle East. And the fluctuation in the stock market
does have its impact on the business but it is not very significant. It is price
sensitive in the market. Profit margin is impacted with foreign exchange because
Companies are performing globally so the foreign exchange rates between one country to
other are directly proportional to Net Profit.

SOCIAL FACTORS
As this industry considered being one of the health hazardous, many steps by the industry
not pollute in any sort of form, air, water and land pollution. Pre cautions are taken by the
firm to minize it and to save the environment. As the mercury process caused a lot of
damage, all most most of the firms globally have being shifted to membrane cell
technology. These improvements result from increased environmental regulation and
stronger market competition as well as increased investment and better management of
resources by industry.

TECHNLOGY FACTORS
Technological factors play a very important role in a Chlor-alkali industry. The chlor-alkali
production process involves mercury cells, diaphragm cells or membrane cells (with
mercury cells the oldest technology still in use and membrane cells the newest).

PORTERS 5 FORCE MODEL

Porter's 5 forces analysis is a framework for the industry analysis and business
strategy development developed by Michael E. Porter of Harvard Business School in
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1979 . Attractiveness refers to the overall industry profitability. An "unattractive"

industry is one where the combination of forces acts to drive down overall
profitability. A very unattractive industry would be one approaching "pure
competition". Porter's Five Forces include three forces from 'horizontal' competition:
threat of substitute products, the threat of established rivals, and the threat of new
entrants; and two forces from 'vertical' competition: the bargaining power of
suppliers, bargaining power of customers

This model gives a fair idea about the industry in which a company operates and the various
external forces that influence it.

Competitive rivalry within the industry

Manufacturers compete on prices. Going forward, we foresee increasing competition in the

industry but the form of competition will be different. It will be between large players (with
economies of scale) and it may be possible that some kind of oligopoly come into play

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Bargaining power of buyers

“Chlor-Alkali products are basic chemicals consumed by various industries and hence any
change in the demand and supply scenario will have a direct impact on the prices.”

The demand for caustic soda and its variants depends upon the levels of industrial activity
in sectors such as metals, textiles and pharmaceuticals. In the case of an actual Chlor-alkali
consumer, the prices it will negotiate with the power companies will have as a base the
open market price, but will vary considerably according to the following factors:

Bargaining power of suppliers

Very low for domestic companies, as in case of many products, imports work out cheaper

There is oversupply in some segments of the industry particularly organic chemicals

Barriers to entry

The industry is capital intensive. Regionality – freight costs, import duties and entry
barriers and geographical issues.

CHAPTER 2: COMPANY PROFILE

The Travancore Cochin Chemicals Limited, a Kerala government company is a

distinguished member of the Udyogamandal Industrial complex in Kerala, India. It was
incorporated in 1951.TCC is a heavy chemical industry engaged in the manufacture and
marketing of caustic soda, chlorine and allied chemicals.

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BRIEF HISTORY

The Travancore Cochin Chemicals Limited, was established in 1950. During 1947
Seshasayee brother, who were the managing director of FACT. They first conceived the
idea of setting up a caustic soda unit as an adjunct to FACT. The idea did not materialize
for some month mainly for the wants of finance. Then Travancore cochin government came
to assist and work on the project, which was taken up in 1949. The partnership concern
floated was named Travancore and Mettur chemicals. The partners of the venture were
FACT and MCIC (fertilizers and chemicals Travancore ltd and Mettur chemicals and
industries corporation). The partnership was unable to complete the project again due to
shortage of finance. A public let company was registered with state government
contributing the major share of the equity. The company name to knows as ‘TCC ltd’ it was
also agreed that seshasayee brother of Travancore ltd, work as managing agent for a period
of 10 years from the date of agreement. Commercial production of caustic soda was started
from the new plant in Jan 1954. The production capacity of plant was 20 tons per day. TCC
has entered into a contract 1995 with the world renewed ASAHI glass company ltd, Japan
for the production of caustic soda, utilizing membrane cell technology. The project
completed in 1997, when commissioned, it was the first mercury plant for manufacturing
caustic soda in India and first producer of Rayon grade caustic soda. The company’s
performance was excellent till ‘96-’97. However due to various reasons and circumstances
beyond control, the company became negative as on 1st march ’01 and consequently refer to
board for industrial and Financial reconstruction (BIFR) as a sick company.
The revitalization package intiated in ’98 has been partially implemented with the
assistance from Kerala industrial revitailization fund board. The accumulated losses of the
company stood at Rs1385 lakhs at 31st march ’05 and networth of Rs1576 lakhs for the year
‘03-‘04 is the peak networth of the company for the 4 finacial year.

Chlor- Alkali industry in the world

During the 1970’s caustic soda was manufactured by utilizing the mercury cell technology.
It was produced by amalgam process. But this technology consumes a lot of energy. There
was a problem of mercury pollution.

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It was during the same period due to the Mina Mata disease resulting from the mercury
pollution, the JAPAN government issued a direction to all caustic soda plants to change
over to other process under a time bound-program. This paved the way for the development
of Ion Exchange Membrane Cell (IEMC).This process apart from totally avoiding mercury,
consumes 30% less power compared to the conventional process.

PROFILE

NAME - Travancore Cochin Chemicals Limited

LOGO -
REGISTERED OFFICE - Udyogamandal, kochi
HEAD OFFICE - Alleppey
SHARE CAPITAL - 2,131.19
CHAIRMAN - Shri. P.H.Kurian, IAS
DIRECTOR - Shri E Sudheer
MANAGING DIRECTOR - Dr M.P Sukumaran Nair

LOCATION
The Travancore Cochin Chemicals Limited (TCC) is a State Public Sector
undertaking owned by the Government of Kerala. It is situated at Udyogamandal in Cochin
Industrial Belt. The Factory and the Registered Office are located 20KM from the Cochin
International Airport and 15KM from the Ernakulum Railway Station.

MISSION
TCC is committed to supply quality chemicals at competitive prices to customers.
Customer’s satisfaction, concern for environment and safety are priorities of the company.

VISION

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1. Utmost level of conservation of all resources including energy.

2. Cost effectiveness in all the operations.
3. Regular up gradation of technologies used in processing.
4. Compliance with laws and statutory regulation.

CORPORATE OBJECTIVES

1. To produce and market chemicals and caustic soda economically and in an

environmentally sound manner.
2. To maintain optimum level of efficiency and productivity and to secure optimum
returns on investment.
3. To maximize profits from projects taken up from caustic soda.
4. To continuously upgrade the quality of human resources of the company and promote
organizational development.
5. To continuously improve the plant and operational safety and confirm the statutory
pollution control standards.
6. To ensure corporate growth by Expansion and diversification.
7. To care for the community around

SWOT ANALYSIS

STRENGTH

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• Only chlor alkali unit in the state.

• Company’s products are basic chemicals and are considered to be the building
blocks of chemical industry.
• TCC is a pioneer in the chlor alkali market and has created reliability and
credibility among the customers.
• Qualified work force, brilliant engineers, managers’ and skilled workers.
• Good record of physical and financial performance in the past. Strategic
location with no other competitors around at present.
• Excellent transporting facilities and proximity to national highway, railway line,
sea port and airport as well.
• Availability of water in abundance as TCC is situated in the banks of river
periyar.
• The company has not faced strike for the past few years because of the excellent
management labour relation.
• TCC has 80% market share for its product in state of kerala.
• TCC is a feeding company industry to other companies.

WEAKNESS
TCC is a public undertaking, the political condition of the state effect the
management of the company. The major decision of the company have to be approved by
the government, which delays the implementations of plans and there by causing
organizational inflexibility.
The major weakness are :
• Lack of profit motive leads to poor performance.
• Employee cost is high compared to industrial standards.
• Large consumption of energy, 60% of manufacturing cost is electricity.
• Raw salt is not available in the state, so transportation cost is very high.
• Flexibility in organization.

OPPORTUNITIES

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• New project of synthetic rutile plant: Rutile companies are reaping huge profits
in the state due to the availability of raw materials, within state. There is a high
price in the international market for rutile and related products.
• Proposal for a hydel project will benefit TCC and the power so obtained can be
utilized for running the plants of TCC. Thus reducing the cost incurred on
electricity.
• Economic development of the country may result in a higher demand for
products especially chlorine in near future.

THREATS
• The infrastructure of the company is obsolete compared to others.
• Competition from foreign country.
• High cost of production.
• Closing down of near by companies.
• The import duty policy of central government is high and caused periodic
fluctuation in the price of the company’s product.
• TATA is coming up with a Cholr – Alkali plant
• Unreliability in power supply from state grids
• Increase in power tariff and added tax
• Mercury used in health care and the unintentional release of mercury from waste
incineration poses a threat to public health. Children are particularly vulnerable
to the exposure to mercury as it can affect adversely.

PRODUCT PROFILE :

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TCC produces wide varieties of products from Caustic soda to sodium hypochlorite
.Various product of TCC are;

1. CAUSTIC SODA (NaoH)

2. CHLORINE (Cl2)
3. HYDRO CHLORIC ACID (Hcl)
4. CAUSTIC SODA FLAKES
5. SODIUM HYPOCHLORITE

Major products and production capacity

PRODUCTS PRODUCTION TONE PER ANNUM

Caustic soda 57750

Liquid chlorine 23760
Commercial hydraulic acid 127742
Caustic soda flakes 33000
Sodium hypo chlorite 15000

TCC’s main raw materials are common salt (sodium chloride), electricity
and water. The company requires about 2650 units of electricity and 1.72 tonne of raw salt
per tones of caustic soda produced. Common salt is mainly processed from Gujarat and
Tamil nadu.

1. CAUSTIC SODA (NaoH)

Caustic soda is a basic alkali. It came into being in the latter half of 19 th century
with the development of electrolysis. Caustic soda lye, obtained from membrane cell is a
clear colorless, odorless and soapy liquid. TCC is producing two types of caustic lye of
concentration 32% and 50%.

USES

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• A chemical for dissolving out extraneous matter from wood for preparing pure
cellulose and for the preparation of alkali cellulose and for the production of
viscose solution.
• A chemical for preparing pure cellulose by dissolving out extraneous matter.
• As saponification agent.
• In bleaching, dying and miscerizing.
• For processing monazite and refining of Bauxite.
• Reagent for production of various organic chemicals.
• A purification agent and absorbent for acidic gases.
• A cleaning agent.
• For refining petroleum fractions

2. CHLORINE (Cl2)
Chlorine, a co-product obtained in the manufacturing process of caustic soda is
an equally important basic chemical. It is a renowned water purifying chemical. It is a
greenish yellow gas. Chlorine is sold after liquefying. Chlorine has got a pungent smell and
liquid chlorine is amber in colour.

USES
• Producing insecticides (DDT, BHC etc) and pesticides.
• In purifying drinking water and sterilizing sewage
• effluents.
• For manufacturing PVC and allied co-polymers.
• As a bleaching agent.
• For producing a variety of organic chlorine compounds.
• For upgrading titanium content in ilmonte.

3.HYDROCHLORICACID(Hcl)

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Hydro chloric acid produced by TCC is of high purity and finds application in number of
chemical industries and it is yellowish green in colour. The Hcl produced have
concentration 30.33%.

USES
• For the production of ammonium chloride and in the
• Manufacture of phosphoric acid.
• In monazite processing for the separation of rare earths as
• Chlorides from thorium.
• As cleaning agent in galvanizing.
• For hydrolyzing starch into sugar.

4. SODIUM HYPOCHLORITE

Sodium hypochlorite, commonly known as soda bleach, finds its application in bleaching as
a disinfectant and also in the extraction of rare earth elements. It is a pale yellowish green
colour liquid. Soda bleach is the only branded product that the company is producing, brand
name is “Eko clean”.

USES
• As a bleaching agent
• As germicide and cleaning agent.
• For sterilization.

5. CAUSTIC SODA FLAKES

Caustic soda lye is concentrated to 98-99% NaoH and converted to flakes in a continuous
caustic fussion plant (CCF). It is a white deliquescent solid in flakes form.

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MAJOR CUSTOMERS OF TCC

TCC has large number of customers using its products far and near.
The following are some of customers of TCC Ltd;
● Hindustan Lever Ltd, Cochin, kerala.
● Tamil nadu paper mills ltd, Pugalur, Tamil nadu.
● Indian oil corporation, Ernakulam, Kerala.
● FACT Ltd, Ernakulam, Kerala.
● Indian rare earths ltd, Udyogamandal, Kerala.
● Mysore paper mills, Karnataka.
● Hindustan insecticides ltd, Udyogamandal, Kerala.
● Kerala minerals and metals ltd, Kollam, Kerala.
● Cochin refineries ltd, Ernakulam, Kerala.
● Kerala Water Authority.
● Hindustan organic chemicals ltd, Kerala.
● Binani zine limited, Edayar, Kerala.
● Pigments India ltd, Chalakudy, Kerala.
● Hindustan zine ltd, (All Units).
● Kerala chemicals and proteins ltd, Cochin, Kerala.
● Cochin minerals and rutiles ltd, Aluva, Kerala.
● National thermal power corporation (all units).
● Steel authority of India limited (All units).
● Karnataka soaps and detergents, Mysore, Karnataka.

● Nuclear fuel corporation, Hyderabad, Andhra Pradesh.

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COMPETITIORS OF TCC LTD

TCC is the only chlor-alkali unit under public sector in India and it is the only chlor-alkali
unit in kerala.
Some of the major competitors are:
1. Atul ltd, Ahmadabad
2. Bilt chemicals, New Delhi.
3. Century rayon, New Delhi.
4. Chem., Fab alkalis, Pondicherry.
5. Chemplat sanmat ltd, Mumbai.
6. PCW ltd, Mumbai.
7. Grassing industries, Nagda, Madhya Pradesh.
8. Gujarat alkali’s and chemicals, Gujarat.
9. Gujarat heavy chemicals,Ahmadabad

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CHAPTER 3 - ORGANISATIONAL DESIGN

An organization structure refers to the determination of organization system of the

enterprise it determines the programs and procedures by which the administrative relations
of an enterprise are defined and established. No activity of the organization can go out of
this structure. As the policy of the enterprise determines the limits within which the
enterprise has to work. In the same manner organization structure determines and defines
the shape and size of the enterprise according to which the administrative and organization
decisions have to be taken. It is also the framework of activities of the enterprise, it may
also be considered as the map of the building to be constructed. Organization structure can
be defined, as the organization structure of an organization deals with its organizational
arrangements.

TYPES OF ORGANIZATIONS STRUCTURE

FORMAL ORGANIZATION:-

It refers to the planned structure of jobs and positions with clearly defined objectives and
functions. It is consciously created by top management for the accomplishment of
enterprise objectives. It is made up of official relationships and channels of communication.
Formal structure is governed by established rules and procedures. Formal organization
tends to be stable and predictable. Thus, it is represented in the organization chart and
manual of the enterprise.

INFORMAL ORGANIZATION:-

Informal organization arises from the personal and social relations of people. It is not
formally designed but develops spontaneously out of interactions between persons. It is

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influenced by personal attitudes, likes and dislikes. Informal relations cut across formal
channels. People working together in an enterprise frequently come into contact and
develop personal or social relations outside the formal structure.

Advantages of the organization structure:-

The organization structure has the following advantages in the enterprise:-

• Necessary for the management:- it is necessary for the management of the business
and industrial enterprise. In the absence of a clearly defined organization structure,
the management cannot discharge its duties properly because the structure defines
and defines the relation between all the departments of the enterprise and the rights
and duties of all the in the enterprise. It also tells us about the managerial approach.
• It reveals the drawback of an organization:- organization structure is an important
document of an enterprise. It serves as the guidelines to explain what should be
done in the enterprise. Actual performance of the enterprise is compared with this
document. The way it reveals the drawback of an organization
• Helpful in delegation:- it is also helpful in providing the suitable training to the
employees of the organization and defining their duties. It helps in delegating proper
authority to the employees so that they can discharge their duties effectively and
efficiently.
• Helpful in training:- It is also helpful in providing suitable training to the
employees and defining their duties like mentioned in the above. It defined the
requirements of all the suitable postages and it also determines the need, nature, and
the from of the training required.

Disadvantages of organization structure:-

The organization structure follows from the certain defects:-

• It is difficult to change it: - Management is a dynamic science. To make is a real
science, must be practical, no hard and fast line can be drawn in the activities of
enterprise, organization structure is the definite determination of activities.
Therefore, it develops rigid ness in the activities and becomes difficult to make any
changes easily.
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• It reveals only the formal relations:- A very important drawback of the organization
structure is that it is only a formal document. It defines only the formal relations
among the employees of an enterprise. But in practice, there are two types of
relations among them. Formal and informal and organization structure does not
define informal relations.
• It creates conflicts:- Organization structure makes clear difference in the rights and
duties of all the employees of the enterprise. It is the feeling of boss and
subordinate among them. It also develops the feeling of superior and inferior. It
also develops the feeling of senior and junior.

TYPES
1. Pre-bureaucratic structure- This structure is most common in smaller
organizations and is best used to solve simple tasks. They follow a flat hierarchy
system.
2. Bureaucratic structure- They are suited for complex or larger scale operations.
Under this structure:-
• Functional structure- This structure groups specialize in similar skills in
separate units. It is well suited to organizations with a single or dominant
core product because each subunit becomes extremely adept at performing
its particular portion of the portion.
• Divisional structure- It is formed when an organization is split up into a
number of self-contained business units, each operating as a profit centre.
3. Line organization- It is also known as scalar or military organization. In this
structure, there is a vertical line of authority running from the top to the bottom of
the organization. Here, the command is through a straight and unbroken line. All
persons at the same level are independent of each other. The authority and
responsibility of each position is specified. The man at the top has the highest
authority and it is reduced at each successive level down the hierarchy. Every
person is in direct chain of command. Line organization can be of two types. In
pure line organization all individuals at a given level perform the same type of
work and they are grouped into divisions only to facilitate effective supervision
and control. In a departmental line organization work performed in each
department is of a different type.
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4. Functional organization:-

Under functional organization, the organization is divided into a number of functional

areas. Each function is managed by an expert in that area. Every functional area
serves all other areas in the organization. Thus, an individual in the organization
receives instructions from several functional heads. Every functional expert enjoys
functional authority over subordinates in other departments. Within a functional
department every operating executive receives orders from several functional
specialists.

5. Line and staff organization-

Line and staff organization is a combination of line and functional structures. Under it,
line authority flows in a vertical line in the same manner as in the line organization. In
addition, staff specialists are attached to line positions to advise them on important
matters. These specialists do not have power of command over subordinates in other
departments. They are purely of advisory nature. Thus, staff positions are created to
support the line managers. Every staff specialist, however, has line authority over the
subordinates in his own department.

6. Matrix organization-

Matrix organization is a hybrid grid structure wherein pure project organization is

superimposed on a functional structure. It is a two-dimensional pattern developed to meet
the problems of growing size and complexity of undertakings. Such undertakings require
an organization structure more flexible and technically oriented. Matrix structure has
been defined as “any organization that employs a multiple command system that includes
not only the multiple command structure but also related support mechanism and an
associated organizational culture and behavior pattern”. Thus, a matrix organization is
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characterized by an overlapping of command, control and behavior patterns. In this

organization, there is a permanent functional set up. In addition, temporary project
groups are created to handle infrequent short-term projects.

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ABBREVIATIONS
ABBREVIATIONS

MD - Managing director.
DF - Director Financer
GMT -General Manager Technical.
AGM HR -Asst.General Manager (HR)
AGM OP -Asst.General Manager operations.
CSO -Chief Security Officer.
M (P&W) - Manager (personnel and welfare)
APO -Assistant Personnel Officer.
PRO -Public Relations Officer.
DO - Duty Officer.
AGMM -Asst. General Manager Marketing.
SM - Sales Manager.
SSO - Senior Sales Officer.

DFC - Deputy Finance Controller.

SAO (GA&F) -Senior Accounts Officer (General Accounts & Finance)

SAO (CASH) -Senior Accounts Officer Cash.

SAO (E&EDP) - Senior Accounts Officer (Establishment & Electronic data
processing)

SAO (MA) - Senior Accounts Officer (marketing accounts).

SAO (Co) -Senior Accounts Officer (confidential)
SAO (PF) -Senior Accounts Officer (Provident fund)
AAO - Assistant Accounts Officer.
AGM MT - Asst. General Manager Materials
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MP - Manager purchase.
MS - Manager Stores.
MIC - Manager Inventory Control.
SPO - Senior Purchase Officer.
APO - Assistant Purchase Officer.
SY&IA - Company Secretary and Internal Auditor.
DMIA - Deputy Manager Internal Audit.
SE - Senior Engineer.
MO - Medical officer
PLM - Plant Manager.
DMPR - Deputy Manager Production
AGMTS - Asst. general Manager (Technical Services).
CEPC - Chief Engineer Pollution Control.
DMTS - Deputy manager (Technical Services).
CE(S) - Chief Engineer Safety.
SE(PC) - Senior Engineer Pollution Control
OQC - Officer Quality Control
AGME - Asst. General Manager (Engineering).
CEM - Chief Engineer Maintenance
CE(U&S) - Chief Engineer Utilities & Statutes.
DGMP - Deputy general manager (Projects)
DME - Deputy Manager Engineering.
DM(U&S) - Deputy manager Utilities and Statutes.
AGMP - Asst. General Manager (Project).
AGP(S&P) - Asst. General Manager (Systems & Project).
DM(S) - Deputy Manager (Systems)
DGME&I - Deputy General Manager (Eletricals & instrumentation)
AGM(E&I) - Asst. General Manager (Eletricals & instrumentation)

CEE - Chief Engineer Eletricals

CEI - Chief Engineer Instrumentation
SEE - Senior Engineer Electrical
DM (HT) - Deputy Manager High Tension

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DM (LT) - Deputy Manager Low Tension

CHAPTER 4 – Business level function and processes

The main functional departments of TCC are:-

 OPERATIONS DEPARTMENT
 HUMAN RESOURCE DEPARTMENT
 MARKETING DEPARTMENT
 PERSONNEL DEPARTMENT
 FINANCE DEPARTMENT
 TECHNICAL and SERVICE DEPARTMENT
 MATERIALS DEPARTMENT
 ENGINEERING DEPARTMENT
 PROJECT DEPARTMENT

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OPERATION DEPARTMENT

Operational department is the most important department of TCC. This department carries
out the manufacturing of all the products. The company carries out continuous production
system; hence this department plays a very crucial role in TCC.

DUTIES AND RESPONSIBILITIES OF OPERATIONS MANAGER

1. MOP is the head of the operation department.

2. MOP fixes the monthly target according to the market operations
3. MOP is responsible for the modification of the production process and is
responsible for efficient discharges.
4. MOP is the designated emergency controller during any hazardous incidents.
5. MOP has the administrative control over the operations department.

OBJECTIVES OF OPERATIONS DEPARTMENT

1. Reduce non confirming products.

2. Maximize the availability of electrolyze operation.
3. Optimizing the specific consumption of electricity, furnace oil and purification
chemicals.

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DUTIES AND RESPONSIBILITY OF PLANT MANAGER

1. PLM is the custodian of the plant.

2. PLM plans production activities to meet the production target
3. PLM is responsible for the material consumption.
4. PLM plans the shutdown activities and carry maintainance work of the plant
5. PLM coordinates the operational functions with other departments for the smooth
functioning of the plan.

INTRODUCTION TO PRODUCTION PROCESS

Production is the process of converting raw materials into finished goods. It is the process
of adding values to raw materials. Layout in TCC is product layout. All the sections and
departments are based on these activities of production layout. Company carries out a
continuous production system.

Products manufactured;
1. Caustic soda lye
2. Caustic soda flakes
3. Hydrochloric acid
4. Chlorine
5. Sodium hypo chlorite

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HUMAN RESOURCE DEPARTMENT

Human resource is considered as the most vital asset of an organization. TCC has a well
defined employee power. It helps the organization to perform well in the market. Human
resources department is headed by manager, HRD, who organizes the training programs for
workers and managerial staff. The manager HRD is responsible only for training and
development. MHRD does not come under the personnel department for workers and
managerial staff.
MAIN FUNCTION OF THE DEPARTMENT
• Identifying training needs
• Impacting the required training
• Maintaining the training records
HRD organizes training programs using internal faulty or engaging faculties from reputed
organizations. The department in consultation with concerned department heads to organize
house training programs.

VARIOUS TRAINING PROGRAMMES

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GENERAL TRAINING
In order to provide this type of training, one has to determine what would be the
trainee’s growth potentials, up to what level he can grow in the organization etc. A
performance appraisal has to be done to evaluate his present performance. Training is given
on the basis of appraisal.

NEED BASED TRAINING

Need based training will be done o the basis of determining the level of knowledge
and skill one requires for a particular job. Next is to find out how many employees have to
be given this training. On the basis of these needs training is given to the employees.

CUSTOMER TRAINING
Customers are given training on handling of chlorine and other products in various
situations.

INDUCTION TRAINING
It is the training provided to the newly recruited employees to familiarize with the
activities, rules, policies of the organization. It is also done to introduce the new employees
to the other employees of the organization.

TECHNOLOGY TRAINING
Company provides advanced training for workers to cope up with the technological
changes. Feed back is obtained from employees and the effectiveness of the training
programme is ascertained after a period of 2-3 months.

PERSONALITY DEVELOPMENT PROGRAMES

Personality development programmers are conducted in a regular time period for
the development of both workers and manager.

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INTERNAL TRAINING
• The HRD department has the provision for conducting training. The HRD centre
has a hall which can accommodate around 40-50 people and has a public
address system and a LCD projection.
• Every month, 3 day training programmers, is held for workers. The workers
education center, under the lab our industry conduct. This programmer’s are
conducted on contact basis, which is recorded annually. 20-25 workers from
various sections are selected every month. 4-5 officers from WEC conduct the
training programmers and towards the end fixes the date for the programmes of
next month in consultation with the manager HRD.
• The topics covered include personality, management development programme,
interpersonal relations, impact of globalization, effective communication etc.
• Other – in - house having programmers is conducted by agencies like kerala
state productivity council. In such programmes the officers and the subjects are
selected by TCC these are conducted mostly for workers on pollution, safety,
etc.
• During the installation of membrane plant, officers were sent to Japan for
training. Those officers are in charge of train in programmes.

EXTERNAL TRAINING
TCC staffs send for external training based on the intimations; received from the external
agencies. An officer has been send to madras, Trivandrum and other places. On an average
TCC spends more than one and half lakh rupees in a year on training needs.
Training customers
The company on the request of the customer does training to the customers. Usually such a
case comes when the customer doest not have competent staff to train their drives or
transporters of chemicals. Mostly staffs of the water authority are given training.

Features of training
• It will be a one day programme from 9 am- 4 pm.
• Takes the trainees to pollution control and safety departments.

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• Explain the details of the product like its appearance, the dangers with it, how it is
affected, the precautions to be taken, the steps to be taken if accidents occur etc.

MARKETING DEPARTMENT

The marketing department is headed by marketing manager and reports directly to the
managing director underneath comes the sales manager. Only 30% of the production is sold
in kerala and rest outside the state. This department takes care of the demand which is being
met ie 80%. They have a very limited number of middle men to market their product in
other states like Tamil nadu and Gujarat. Credit period given to the existing customer is 30
to 60 days and to the new customers is 30 days.

DUTIES AND RESPONSIBILITIES OF MARKETING MANAGER

1. Marketing manager is directly responsible for sales and
2. distribution of the products.
3. Marketing manager is responsible for customer satisfaction.
4. Marketing manager is responsible for organizing and
5. coordinating various aspects of marketing including sales
6. forecasting , advertising, sales promotion and transport.
7. Marketing manager is responsible for implementing product
8. policy.
9. Marketing manager has a crucial role in price fixation.
10. Marketing manager has responsibilities regarding after sales service and complaint
handling.

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NATURE OF THE MARKET

TCC is the only chlor-alkali unit in kerala. So the firm has more or less monopolistic
market in kerala. However the national scenario is different. There are about 38 units as
competitors. TCC considers customer satisfaction as the main factor. TCC aims to build
stable sales in market thereby building a sense of credibility among the buyers. The
company is engaged in industrial marketing.

SECTIONS
The marketing department has been divided into two sections:
1. The supply section (issue)
2. The documentation section (documentation)

FUNCTIONS OF THE SUPPLY SECTION

● Preparation of schedules of dispatch and the actual dispatch.
● Execution of sales offers.
● Maintain daily stock registers.
● Informing parties about the dispatch affected.
● Performing after sales service.
● Manufacturing stability in sales so as to boost
credibility with the buyers.

FUNCTIONS OF THE DOCUMENTATION SECTION

• Preparation of sales quotation/tenders, letters and amendments.
• Maintenance of sales offers register book and other necessary information.
• Keeping records of the buyers.
• Keeping proper documentation for buyer complaints and the after sales service
provided.
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• Preparation of sales budget, sales plan and monthly allotment correspondence with
parties.

THE MARKETING MIX

The major markets are in kerala, Tamil nadu and certain portions of
Karnataka expert for caustic soda flakes. All their products are mostly sold in stock in south
India. There is a demand for caustic soda flakes from Mumbai.

1. PRODUCTS
TCC manufactures industrial products namely, caustic soda lye, caustic soda flakes,
liquefied chlorine, commercial hydrochloric acid and soda bleach. The industries served
through these products are soap, paper, insecticides pharmaceuticals, starch chemicals,
minerals, minerals processing, disinfectant, textiles, rubber, water purification, drugs,
petroleum etc. The only branded product is soda bleach, in the name ‘’ECO CLEAN’’.

NEW PRODUCT OF TCC

EKO CLEAN: It is a sanitation product. In the current scenario, It is being launched in

the market as a preventive chemical against ‘’chickum guinea’’. The raw material for eco
clean is sodium hypochlorite. The distribution channel for this product is:
► Direct marketing.
► Through government agencies, medical stores.

2. PRICE
The company has adopted a differential pricing policy. An open body namely AMAI
(alkali manufactures association of India) fixes ceiling price for a p price for a particular
period. Generally this price is fixed by adding up the basic price (cost of production + sales
tax + excise duty + freight charges + a small percentage of profit). Price concessions are
also given to long distance customers, taking into consideration their freight element.

Approximately price for the products are as follows:

PRODUCTS PRICE
Caustic soda Rs. 21100/tone
Caustic soda flakes Rs. 23100/tone

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Liquid chlorine Rs 9800/tone

Commercial hydrochloric acid Rs 3500/tone
Sodium hypochlorite Rs 3000/tone

3. PLACE
Channels include direct selling to customers. For caustic soda, there are agencies
outside kerala for marketing. There are two dealers in Tamil nadu. The entire functions are
done from the company office at udyogamandal and there is no marketing office outside the
company. The dispatch takes place within the company premises.

4. PROMOTION
The products of the company are industrial products. Since TCC is the only producer
of the above- mentioned products in the state, there is no real competition in the local
market. The customers are aware of the existence of the company. The actual marketing
factor of the product is the price offered by TCC. The customer accepts the offer only if the
price offered by our company is the lowest among the bids made. TCC generally does not
give importance regarding advertisement of their products. However, the company
advertises in trade journals like chemical magazine once in a while. The promotional
activities include regular press releases, creation of documentary etc. promotional activities
are generally done through company website www.tcckerala.com.

Pricing policy
The conmpanyt had adopted a differential prcing policy. An apex body namely, AMAI
( Alkali manufacturers Association of india) fixes selling price for a particular period. Price
of the product is fixed by adding the production cost, exicide duty, freight charges and
applicable sales tax.

Marketing strategy
Organization has adopted strategy on the basis of their product nature, market situation
demand of the product, competition etc. The company mainly focuses on customer
satisfaction.

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PERSONNEL DEPARTMENT

The personnel manager, head of the department directly reports to the M.D, deputy
manager (personnel) and welfare report to the personnel manager, the department has five
permanent administrative staff.

FUNCTIONS OF PERSONNEL DEPARTMENT

• Recruitment
• Manpower planning
• Welfare functions: including statutory and Non-statutory welfare measures.
• Grievance handling as per the provisions of industrial disputes act and as per the
factories act.
• Maintaining discipline
• Industrial relations
• Job specification
● Staffing
● Performance appraisal
● Wage and salary administration

MANPOWER PLANNING
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An important function of the P.M. is that of manpower planning, in which the

personnel officer assists. A list of retiring employees is prepared 3-4 years in advance and a
call for recruitment is made. The list of call for recruitment has to be approved by the M.D;
the company will inform the vacancies to the public service commission (p.s.c) around 5
years in advance.

RECRUITMENT AND SELECTION

Man power requirement are identified and the required persons are selected by the
personnel department.
Source of recruitment;
1. Internal sources
2. Kerala public service commission
3. Technical and district employment exchange
4. Direct recruitment by advertising

PROMOTION POLICY
Promotion policy is divided into two;
1. Managerial promotion policy.
2. Non- managerial promotion policy

1. Managerial promotion policy:

Here a stipulated length of serve in the immediate lower grade is the main criterion
of promotion. Promotion from workers category to office staff shall be ordered only with
board resolution and price permission of government. Time bound grade promotions are
considered only in the case of the lowest two managerial scales. Period of ten years service
can be considered for promotion.

2. Non – managerial promotion policy:

Vacancies other than to be filled by the recruitment through P.S.C will be filled as
per the policy and procedure lay down through the terms of settlement. If a prospective
employee has the minimum qualification and stipulated service, then a minimum score of
60 points is to be got from evolution of attendance, service records and quality of work.
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WAGE AND SALARY ADMINISTRATION

In TCC, personnel manager has a role of advisory nature. Actually the
settlement of wage/ salary is done by the accounts department. The trade union and
management will decide upon how much to pay for each employees and worker based on
his or her work performance.

STATUTORY WELFARE MEASURES

Accident benefits:
If an employee, who is covered under the employee’s state insurance (E.S.I) scheme, meets
with an accident while on duty he/she will be paid accident benefits as per the E.S.I
scheme.

Annual bonus:
The scheme of annual bonus being paid by TCC to its employees is linked to product/
productivity in lieu of bonus based on profits payable under the payment of bonus act,
1965. Annual bonus in relation to each financial is paid to employees before onam of the
succeeding financial year.

Drinking water:
Drinking water is supplied to all workers and staff to the company as per their
requirements. A few water coolers also been installed in the factory for the benefit of the
employees.

Occupational health centre / first aid appliances:

The health centre is under the personnel department. The centre has a doctor available
around-the-clock. Other than the medical officer, the centre also has a pharmacist,
compounded and first aiders.
Rest rooms and lunch rooms:

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Adequate and suitable rest rooms and lunch rooms are provided in the factory for the
convenience of workers. These are separate rooms for the men and women with the
facilities for washing, toiler and drinking water.

FINANCE DEPARTMENT

Travancore cochin chemicals limited has an efficient finance department headed by the
finance manager and he is assisted by the deputy manager, finance. Finance manager is
responsible for shaping the fortunes of the company, preparing budgets, raising funds,
keeping different accounts etc. TCC is having management information system to assist the
finance department. The finance department itself is divided into different sections like
general accounts, costing bills, establishment and provident fund accounts sections each
having its own functions.

FUNCTIONS OF FINANCE DEPARTMENT

● Purchase bills passing and payment to suppliers

● Sales invoice records
● Debt collection
● Budgeting and costing
● Statutory auditing
● Finance control
● Handle all auditing and taxes
● Sales accounting
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● Generation and utilization of funds

● Treasury operations

The functions of each department are explained below:

Deputy finance manager
Deputy finance manager controls the costing process. Various costs such as
material costs and production cost are assessed. Fixed capital and working capital are also
planned. A comparative study on budgeting control is made. The various areas coming
under DFM are as follows:

AOGA: The main area coming under this section is finalization of accounts, preparation of
profit and loss accounts, and balance sheet as well. Different vouchers, journals and ledgers
are also maintained under this area. Bank, cash, payroll etc also come under this. Based on
these, ratio analysis is made.

AO BILLS: Under this area, first a quotation is collected from various companies. If it is
accepted, purchase order is made. Purchase order contains the specifications, date place etc.
Then the products are received in the stores. Receiving report is given. Income, sales tax
and VAT are verified in this section.

Senior accounts officer: The senior account officer deals with sales accounting. He also
maintains the account of sundry debtors, Sales tax, VAT etc also comes under this category.
Every activities of sales tax are done here. The qualification of senior accounts officer is
that they must be either M.com or CA.

FINANCE MANAGER: The function of FM is to have an over all control of above

department. The various sections coming under finance department are explained below;

GENERAL ACCOUNTS SECTION: In this section a large number of general accounts

are kept, these include;
● General journal in which the transactions are entered first.
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● Standard journal in which all recurring items are entered

(salary, wages, excise duty).
● Cash book in which all cash receipts and payments are
recorded
● Sundry creditors and sundry debtor’s ledger.
● Bank book in which all bank payments and receipts are
entered.
● Subsidy ledger, which include individual accounts
maintained by each department.

A trial balance is prepared every 4 months. Balance sheet is prepared annually for financial
year from April 01 to March 31st.

BILLS SECTION
In this section, all payment for purchase is recorded. This includes bills payable to
suppliers and contractors. In case suppliers demand advance, it is paid and properly
accounted. Sundry creditors ledger and supplier account are kept in this section. At the end
of the year, the accounts are ratified and send to the general accounts section. In this
section, separate cost records are kept and maintained and cost audit is conducted every
year both internally as well as by the government nominees.

COSTING SECTION
Budgeting and budgetary control is the main function of costing section where
both revenue and capital expenditure budget are prepared. Capital expenditure is prepared
based on the total cost incurred for all items in all departments. Revenue budget is prepared
on the basis of estimates for production, sales and expenditure. The balance sheet with total
assets and liabilities shown is prepared and total cash flow is found.

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Other activity of costing section includes:

● Assessing monthly performance.
● Preparation of variance analysis statement.
● Preparing and issuing reports for alkali manufacturing association.
● presenting monthly information about the performance of the company to the
government.
● Preparation of monthly consumption statement of raw
materials.

SOURCE OF FUNDS
For efficient production and sale there must be adequate finance for fixed asset raw
material to meet day-to-day expenditure of the enterprise. Company raises fund by means
of equity funds and borrowed fund. The share capital includes authorized, issued,
subscribed and paid up capital. Subsidy has been received from debt service coverage ratio
(DSCR) and government of Kerala. Loans are obtained as term loans from IDBI and
material loans from government of Kerala.

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TECHINCAL AND SERVICE DEPARTMENT

Technical service department is headed by MTS and has 4 sections,

1. Technical service section;
2. Pollution control section;
3. Fire and safety section;
4. Quality control section;

1. Technical service section

This section is headed by CETS and concerned with technical aspects of the
plant. The main functions of the technical services department are:

1. Daily production calculation and reporting.

2. Collection of daily data from plant control room.
3. Overtime calculation.
4. Feeding data to the computer regarding the plants.
5. Production slips at daily production report generation.

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6. Monthly reports preparation, both internal and external.

7. Maintaining reports of production loss due to various reasons.
8. Calculation of monthly production bonus.
10. Caustic soda pumping report.

2. Pollution control section

Functions:

▪ Waste chlorine disposal plant (WCDP)

Chlorine generated during process flow, cylinder filling etc, in
neutralized in this plant using dilute caustic soda lye. The waste chlorine is absorbed in
slurry filled tower, there by preventing it from spreading in air.
▪ Prevention against air pollution
The main air pollutants are chlorine and acid vapors. As per the prevention
and control of pollution act 1981, the maximum permissible levels of these are 15mg and
0.2 g per kg respectively.
▪ Neutralization in the lagoon
All the effluents are pumped to a lagoon. Samples
are taken regularly from the lagoon and the chemicals are added for neutralization of the
effluents before pumping out in to the river.

3. Fire and safety section

Functions:
1. Provide training regarding fire, safety and first aid.
2. Conducting safety mock drills.
3. Regular maintenance of fire, water pumps and tanks.
4. Issue of work permits.
5. Providing safety awareness programmes.
6. Providing safety incentives schemes.
7. Accident reporting and investigation.
8. To prepare for emergency situation.
Quality control section

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The section is headed by SOQC and reporting to CETS. The main functions of quality
control section are to maintain the quality of the products in each stage of operations.
Quality of raw material, in process fluid and finished goods are also checked. The products
have to satisfy ISO specifications. Raw materials, mainly sodium chloride have to meet
certain requirements specified by the company itself.

MATERIALS DEPARTMENT

Materials are as important factors of production. TCC have well defined materials
department with three sections. The department plays an important role in reducing cost and
increasing profit. Materials department is headed by MMT (manager materials) reports to
DGMT.
The department has 3 sections;
1. Purchase section.
2. Stores section.
3. Inventory control section.

1. PURCHASE SECTION:
This section handles the purchase activities of the company. Various raw
materials needed for production are procured by this section at the right time, at the right
quality from the suppliers. If purchase value is more that 5 lakhs notification should be
given in any two new papers and select the lowest bid according to the verification by a

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committee. If purchase value is 5 lakhs or less, purchase section itself can select the
supplier either by past experience or by the advice of users of those particular materials.

Purchase procedure:
• If a department or a section needs any materials, an MPR (Material Procurement
Request) is being received by the purchase section.
• Then this MPR will be passes to the Inventory control section.
• If the material is available, the MPR passes to the store section. If the material is
not available, then the form is send to purchase section and registered.
• Then this will be forwarded to the Materials Manager.
• Enquiry: Then the manager materials will be send for the enquires to the approved
vendors, inviting quotations.

2. STORE SECTION
Stores Department: Stores materials about 6,000 items are stored which may
include raw materials, chemicals electronic goods, equipments, spares and instrumentation.
The various items are given 29 digit codes for easy handling.

Steps in receiving material

● Visual Inspection: First check the purchase order especially
purchase order number. Only after the materials is received
and stored.
• Preparation of received report
• Inspection report: check whether the material is actual and inspection is done by
Manager (Stores)
• Inspection report is made.

3. INVENTORY CONTROL SECTION

Inventory control is an essential function of stores department. It helps to
reduce cost and increase profit of organization. If material is not coded, codification is done
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by DMIC. For controlling the inventory, certain levels of inventory such as maximum,
minimum and reorder level is prepared. When the stock reaches the reorder level, purchase
request is made.
Objective of inventory control
► Unwanted piling up of inventory is prevented.
► Too determine the item to be stored.
► Material codification to avoid duplication.
► To determine which and how much to replenish.

ENGINEERING DEPARTMENT

The engineering department is headed by mechanical engineer and the department has
mainly 3 sections;
 Utility and statutes.
 Mechanical maintenance.
 Maintenance planning.

UTILITIES AND STATUTES

Utility and statutes section is the service section which provides services
and manpower for other departments. These sections have a well defined structure and
comprise of more than hundred members, under the section head chief engineer utility and
statute. They provide workers on the basis of request from various department heads.

FUNCTIONS

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1. Providing different utilities on request including statutory services.

2. Provide operation and transportation for automobile workers.
3. Provide service like welding, machinery painting and salt changing.
4. Statutory research and development of equipment and tools.
5. Maintain two or more workshops for fabrication and machinery.

MECHANICAL MAINTENANCE SECTION

Mechanical section is found to be the backbone of TCC. All type of manual maintenance is
handled by this section and look forward to maintain the machinery in the best possible
manner and ensure healthy and sound flow of works with in the organization.

Objectives
► To ensure all equipments engaged in production are in
good condition.
► To reduce the down time of critical equipment.
► To reduce cost due to inefficiency in handling the equipments.

Types of maintenance
1. Break maintenance - A machine is repaired only when it got break down.
2. Preventive maintenance- A systematic checking is done on a machine to avoid
break down.

MAINTENANCE PLANNING SECTION

This section is headed by chief engineer maintenance.
Objectives
1. To assist other department and sections in planning and implementing an
engineering work.
2. To provide assistance to project department in developing new project.

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CIVIL DEPARTMENT
Civil department is an independent department headed by chief engineer. All other section
heads in engineering department reports to DGMT who reports to M.D. But civil engineer
reports directly to DGMT. The main role of this section is the construction of the building
and other premises of the company. It is also engaged with the social task to ensure flow of
industrial activities.

Functions
● Maintenance of existing buildings.
● Roof maintenance work.
● Painting and insulation.
● Tender issue for civil works.
● Preparing MPR of steel, sheets, cement and other
construction materials except sand.

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SYSTEM DEPARTMENT
Systems department is one of the upcoming department of TCC. It has come into existence
in the year 2006. As it is faster in company, it has not fully implemented in all department,
but the implementation work is going on. This department is under the control of project
department. Manager systems are directly reported to the manager projects. 115 computers
and 75 printers are there in TCC.
Official website of TCC and through all the maintenance and complaint, handling
procedures are done.

Objectives of systems department

1. Website management
2. Up gradation, maintenance and changes are done by manager system.

There are two main servers in TCC

1. Database server
2. Application server.

SECURITY DEPARTMENT

Security department functions under the personnel manager with a chief security officer
and around 50 staffs. The main functions of the department are to protect the company from
external threats as a part of security, pass and badges are provided to each worker. The
issue of pass is given by the P.M, and the duty pass is signed by him.

Qualification
► PSC TEST
► At least 5 years in the army.

Security staff in the entrance- exit gate will record the workers entrance – exit in the
organization with the help of their cards. If any employee is continuously absent for 7 days ,
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their card will be taken back and it will be informed to the management and their pay will
cut off.

PROJECT DEPARTMENT

Project department is an independent department. The main functions of this department is

the execution of new projects for the company.
Function of the department;
● Planning, feasibility study and implementation of new projects.
● Preparation of detailed report.
● Preparation of feasibility reports if approved by the management.
● Invitation of tenders through advertisements.
● Evaluation of tenders.
● Agreement
● Execution

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New projects in consideration

► 50tpd.

CHAPTER 5 – Findings, Conclusions and Recommendations

FINDINGS
• The major type of customer deal with TCC is Pharmaceuticals, soap industries,
insecticides, pesticides, paper industries and rayon.
• No strikes have been reported for the last 10 years, it shows
• The relationship of workers and management as a good one.
• TCC have a flexible credit policy, they give credit facility up to 30-45 days and they
are getting credit of 60 days from suppliers.
• Pricing policy of TCC is an average, according to the industrial standards.
• New technology of Membrane cell has the advantage of pollution free environment.
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SUGGESTION
• The company must activate the Research and Development cell in order to have
new inventions in this field.
• In order to increase the production, the company must give some motivation to the
employees.
• For the smooth functioning, they must invest a reasonable amount of working
capital.
• The company must take necessary actions to maintain the ratios at the standard
level.
• Improve the first aid facilities by providing free medicines and treatments.

CONCLUSION

Caustic soda, chlorine and HCL acid are the basic inorganic chemical which plays an
important role in the nation’s economic growth. TCC is one of the major public sector
companies in Kerala. Producing Rayon grade caustic soda. In 1997 with the help of ASAHI
GLASS Company Japan, Membrane cell plant of capacity 100 TPD was started. This new
plant which completely avoided the use of mercury was a great step in controlling the
pollution. The new technology also brings about 30% reductions in efficiency of plant and
quality of product.

The company started the salt up gradation plant in 1998 which helps reduction in
consumption of chemicals. The R&D laboratory of the company helps in conducting a
research with a new technical development. Several innovation and modernization schemes
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were implemented to achieve energy conservation, environmental control and economy in

inputs.

As per the study conducted in the organization, the capacity of production is increasing and
the company is moving into more profitable stages. The 30 days I spent at TCC had created
a concrete impression in the development of my career.
TCC is one of the leading caustic soda producing companies in India. I wish a great
technical development and a prosperous future for TCC.

BIBLIOGRAPHY

 C.R. Kothari -Research Methodology, New age International Publishers,

Second Edition 2004

 Philip Kotler - Marketing Management, Prentice Hall of India, PVT LTD

,Tenth Edition 2002

 WWW.TCCKERALA.COM

 WWW.BUSINESSLINE.IN

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 WWW.MONEYCONTROL.COM

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