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MASTER OF BUSINESS ADMINISTRATION As prescribed by Bharathiyar University SUBMITTED BY: V VENKATESWARLU REG No. (12P35J0114) UNDER THE GUIDANCE OF PROF.PUNEETA GOEL
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ACHARYA BANGALORE B-SCHOOL #3, LINGADHEERANAHALLI, MAGADI MAIN ROAD, BANGALORE 560091
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DECLARATION
I, V VENKATESWARLU (Reg.No.12P35J0114) hereby declare that the
ORGATIONAL STUDY in VISHNU CHEMICALS PRIVATE LIMATED, HYDERABAD is written and submitted by me under the guidance of Prof. PUNEETA GOEL, Department of Management Studies, Acharya Bangalore B- School, Bangalore, is my original work and has not been submitted earlier either to Bharathiyar University or to any other Institution.
The Report is for the fulfillment of the degree in Master of Business Administration from Bharatiyar University.
The matter in this report is based on the data collected by me at Vishnu Chemicals limited, Hyderabad, under the guidance of Mr. Sundar Rao (Human Resource Department Head).
(V VENKATESWARLU)
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CERTIFICATE
This is to certify that Mr. V VENKATESWARLU Reg. No: (12P35J0114), a student of Master of business Administration, during the academic year 2012-14 of this college has successfully completed the internship training on ORGANIZATIONAL STUDY at VISHNU CHEMICALS PRIVATE LIMITED, HYDERABAD, under the guidance of Prof. PUNEETA GOEL, in partial fulfillment for the award of Master Degree in Business Administration of Bharatiyar University. His character and conduct is satisfactory during the study and we wish him all success in future Endeavour.
DIRECTOR
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PROF.PUNEETA GOEL
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ACKNOWLEDGEMENT
The completion and drafting is a solitary task but one which has been made smoother with the help of many. Here I take this opportunity to thank those who have made a vital contribution in shaping this study. I would like to express my profound gratitude to Mr. Sundar Rao (Head of Human Resource department) for giving me an opportunity to take up the internship training at Vishnu Chemicals Private Limited, Hyderabad. I express my profound sense of gratitude and indebtedness to Dr.VENKATESHA H.R., Director, Acharya Bangalore B-School, Bangalore for his valuable and intellectual suggestions and for the guidance and encouragement for the successful completion of project. My hearty thank my internal guide Prof. PUNEETA GOEL for all the encouragements and helping hand extended to me for this project work. Any accomplishment requires the efforts of many people. I would also like to thank my friends for their support and help during my project. This project wouldnt have seen the light of the day, if it werent for the cooperation of all these people. Last but not the least; I am also grateful to my parents who have supported in my entire endeavors to bring out this Internship report successfully.
V VENKATESWARLU
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Chapter No.
Particulars
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Introduction
This report mainly focusing on the how chemical industries perform and the challenges it faces in the present scenario. As Vishnu chemicals is one of the largest chemical exporter in India, there are many factors which plays an important role in the success of the company. My project report is totally on the organizational study of the company, and need to observe the company performance and also to prepare the SWOT Analysis. There is much scope in studying in chemical industry as it deals and links with so many different domains across the globe.
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Industry Profile
The Indian chemical industry is among the established traditional sectors of the country, playing an integral role in the countrys economic development. This sector, forming part of the basic goods industry, is a critical input for industrial and agricultural development. The industry has a weight of 14% in the Index of Industrial Production (Base year 1993-94 = 100), giving an indication of the importance the sector holds in the countrys industrial growth. A robust chemical industry is a harbinger of significant economic and strategic benefits to the nation. The chemical industry is among the most diversified industrial sectors, including basic chemicals and its products, petrochemicals, fertilizers, paints, gases, pharmaceuticals, dyes, etc. The sector covers over 70,000 commercial products, and provides the building block for many downstream industries, such as finished drugs, dyestuffs, paper, synthetic rubber, plastics, polyester, paints, pesticides, fertilizers and detergents. The industry includes a wide variety of products, from basic chemicals to research-driven specialized products, at different levels across the industry supply chain. The fundamental nature and diversity of the industry is best understood from the fact that the industry itself is the largest consumer of its products, accounting for around 33% of total consumption.
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As stated in the Annual Report of 2005-06 of the Department of Chemicals & Petrochemicals, GOI, the domestic chemical industry contributes about 17.6% to the total output in the manufacturing sector, 13-14% to total exports and 8-9% of total imports into the country. The sector has a share of 3% to the countrys total GDP. Its contribution to the revenue kitty of the Government is around 18-20%. The domestic industrys turnover is estimated to have crossed US$ 30 bn (Rs 1,300 bn), whi ch is slightly over 1% of the global production. In world ranking, India stands 12th in terms of production.
Industry structure
The chemical industry can be broadly classified into two segments organic and inorganic chemicals. Organic chemicals cover over half of all known chemical compounds, and includes petrochemicals, drugs, cosmetics, agrochemicals, etc. Inorganic
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Chemicals comprise of alkalis, dyes & dyestuffs. Based on a more functional classification, chemicals may be divided into basic, specialty and fine chemicals. The basic chemicals industry forms the largest part of the chemical industry and is characterized by capital intensive, high volume, low margin products. Specialty and fine chemicals are low volume, high margin in nature. It is estimated that nearly 70% of fine chemicals produced in India are used by the pharmaceutical and agrochemical industries. Specialty chemicals include adhesives, additives, antioxidants, biocides, corrosion inhibitors, cutting fluids, dyes, lubricants, pigments, etc. This publication largely focuses on basic chemicals, which can be further divided into alkalis, organic and inorganic chemicals, pesticides and fungicides, dyes and dyestuffs. This classification is based on the product categorisation as provided by the Department of Chemicals & Petrochemicals, for the chemical industry, and excludes drugs & pharmaceuticals and petrochemicals.
Though the chemical industry is spread across the country, there is relatively a high concentration along the west-coast, largely due to the proximity to raw materials and ports.
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Gujarat alone is estimated to contribute around 53% to the total production in the country, followed by Maharashtra, which contributes 9%. The other major producing states include UP, TN, MP and Punjab. On the other hand, in the case of heavy chemicals segment, especially inorganic chemicals, fuel availability is a determining factor, and hence there is a concentration of these companies around power plants. Due to the regional concentration of chemical companies in certain pockets, logistics costs for the industry have tended to become a significant position of total costs.
Industry Sub-segments
The annual production of basic chemicals between FY02-FY05 has been growing at 7% per year, while consumption has been rising at 5% per annum. Imports and exports have also been rising at 7.25% and 37.6% respectively, implying that India has been a net exporter of chemicals. As per the Department of Chemicals, on the largest imports, in value terms have been for organic chemicals followed by dyes & dyestuffs, while the largest export item in value terms is also organic chemicals and chlor-alkali chemicals.
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Chlor Alkali
Chlor alkalis, the largest segment of basic chemicals produced in India, are a volume driven, low margins industry and accounted for around 72% of the total production in FY06. Caustic soda, soda ash and chlorine are products of this industry, forming the basic building block for the chemical processing industry. End-users of this segment include aluminum, dyes, pharmaceuticals, glass, newsprint, paper & boards, soaps & detergents, viscose, textiles, water treatment, pesticides industries, to name a few. The scale of margins for alkalis, to a large extent, depends upon the levels of industrial activity in sectors such as metals, textiles and pharmaceuticals.
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Being a capital intensive sector, the sector is largely dominated by big players. Hence, energy costs form a key determinant of the profitability of the industry. Chlor alkali companies are largely concentrated along the west coast due to the availability of salts, a key raw material.
The Chlor alkali segment has been witnessing a robust 6% growth in production since FY02, with production in FY06 touching an estimated 5.5 mn tonnes. This is one of the few industries where supply exceeds demand, thus having tremendous potential for exports. Since FY03, the sector has been a net exporter. Exports of chlor alkali have been growing at 52% annually since 2001, while imports are rising at close to 6% per year. Technology has played a key role in this segment in adopting better production techniques. Around 60% of mercury-based caustic-chlorine plants in the country have shifted from mercury cell technology to membrane cell technology that has been recommended as a viable production alternative.
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Company profile
Excellence is the guiding principle of Vishnu Chemicals. The name Vishnu Chemicals is associated with excellence; it has merged towards two decades of its existence ever since its inception in the year 1990. Headquartered at Hyderabad, India, Vishnu Chemicals is in the business of manufacturing, marketing and the export of Chromium chemicals and other specialty chemicals. Vishnu Chemicals has an annual capacity of producing over 70,000 MT of Basic Chromium Sulphate, 70,000 MT of Sodium Dichromate, 1000 MT of Chromic Acid, 1000 MT of Potassium Dichromate, 1200 MT of Sodium Saccharine and 400 MT of Vitamin K3. These capacities give Vishnu Chemicals the opportunity to cover the needs of the domestic and the international export markets. We are the market leaders for Chromium chemicals in India. Internationally we have been recognized as trusted suppliers in the export market in over 35 countries. Our products are used in all the world markets, including: Asia, China, South East Asia, Europe, UK, North, South and Central America, Africa, and others. Vishnu Chemicals products have wide applications across various industries, including: pharmaceutical, fine chemical, leather tanning, pigments, dyes, chrome plating, metallurgy, animal feeds, artificial sweeteners, adhesives, ceramics. Vishnu Chemicals has identified Research and Development (R&D )as one of the major components for continued growth. It has established a world-class state of the art research laboratory to offer reliable, high quality products. The research and development division at Vishnu chemicals is driven by the philosophy of continuous improvement, in order to develop new products that add value and strengthens the industries that we serve. The Technology Development Centre supported.
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Date of establishment : 1993 Corporate Address : 6-3-662 / B /4,Sri Sai Nilayam, 2nd Floor,Sangeet Nagar Colony, SomajigudaHyderabad-500082, Andhra Pradesh www.vishnuchemicals.com Chairperson - Ch Krishna Murthy MD - Ch Krishna Murthy Directors - Bajrang Lal Bajaj, Ch Krishna Murthy, Ch Manjula, Ch Siddartha, Chandra shekar, U Dileep Kumar, V Vimalanand Chemicals Financials : Total Income - Rs. 3,260,700,985 ( year ending Mar 2013) Net Profit - Rs 73,341,658( year ending Mar 2013) Sri B.S. Harikrishna
Management Details :
Business Operation :
Company Secretary :
Today Vishnu Chemicals employees more than 1000 people in India and across the world, Headquartered in Hyderabad (India), Vishnu operates three world class facilities in Pharma City Visakhapatnam, Bhilai (Chhattisgarh) and Hyderabad.
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Overview
Vishnu Chemicals, a technology driven company, provides solutions to the partners from process development to production in commercial scale and offers: Process R&D; Scale-up and Pilot studies; Analytical Services and Custom Manufacturing of fine chemicals. The integrated services of Vishnu Chemicals provide innovative, timely and safe drug development solutions that allow customers to make the best use of their available resources. Vishnu Chemicals business philosophy includes intensive analytical support for all customer projects, which is reflected in a broad variety of analytical instruments. Vishnu Chemicals stands at the forefront of chemical service providers and helps its customers to reduce the time, costs and risks associated with drug development.
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Scale-Up:
Our Kilo laboratories provide a bridge between laboratory and pilot plant scale. Operating a variety of vessels up to 100 liters, we have experience in scale-up to meet most requirements. We evaluate the most critical areas during scale-up in order to produce robust and reproducible processes, capable of synthesizing material in a cost effective manner.
Pilot Plant:
We have the capacities to produce product from 100s of Kilo to tons. We offer and take up technology transfer to manufacturing scale. Projects benefit from seamless technology transfer from one stage to the next, as the team guided the project through development follows the project through commercial manufacturing.
Peptides:
Vishnu Chemicals objective is to partner with leading biotech and drug development companies across the globe to support, provide solutions and grow with the client by supporting the development process from bench to market in the Peptide segment. Vishnu Chemicals can offer reliable, high quality products at value based commercial market applications. Our activities lay major emphasis on the: - Protection, deprotection of amino acids.
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PRODUCT PROFILE
Caustic Soda lye (Sodium hydroxide)
Sodium hydroxide (NaOH), also known as lye and caustic soda, is a caustic metallic base. It is used in many industries, mostly as a strong chemical base in the manufacture of pulp and paper, textiles, drinking water, soaps and detergents and as a drain cleaner. Worldwide production in 1998 was around 45 million tones. Sodium hydroxide is a common base in chemical laboratories. Pure sodium hydroxide is a white solid; available in pellets, flakes, granules and as a 50% saturated solution. It is hygroscopic and readily absorbs water from the air, so it should be stored in an airtight container. It is very soluble in water with liberation of heat. It also dissolves in ethanol and methanol, though it exhibits lower solubility in these solvents than does potassium hydroxide. Molten sodium hydroxide is also a strong base, but the high temperature required limits applications. It is insoluble in ether and other non-polar solvents. A sodium hydroxide solution will leave a yellow stain on fabric and paper.
Methods of production
Sodium hydroxide is produced (along with chlorine and hydrogen) via the chloralkali process. This involves the electrolysis of an aqueous solution of sodium chloride. The sodium hydroxide builds up at the cathode, where water is reduced to hydrogen gas and hydroxide ion: To produce NaOH it is necessary to prevent reaction of the NaOH with the chlorine. This is typically done in one of three ways, of which the membrane cell process is economically the most viabl Unlike NaOH, the hydroxides of most metals are insoluble, and therefore sodium hydroxide can be used to precipitate metal hydroxides. One such hydroxide is aluminium hydroxide, used as a gelatinous flocculant to filter out particulate matter in water treatment. Aluminium hydroxide is prepared at the treatment plant from aluminium sulfate by reacting with NaOH. This reaction is highly profitable, and is hence an important synthesis reaction.
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Uses
Sodium hydroxide is the principal strong base used in the chemical industry. In bulk it is most often handled as an aqueous solution, since solutions are cheaper and easier to handle. It is used to drive chemical reactions and also for the neutralization of acidic materials. It can be used also as a neutralizing agent in petroleum refining. It is also used for heavy duty and industrial cleaning.
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Industrial use
Alumina production Soap production Oil drilling Fuel production Pulp manufacturing for producing paper Biodiesel Cleaning agent Food preparation
Safety
Solid sodium hydroxide or solutions of sodium hydroxide will cause chemical burns, permanent injury or scarring if it contacts unprotected human or animal tissue. It will cause blindness if it contacts with the eye. Protective equipment such as rubber gloves, safety clothing and eye protection should always be used when handling the material or its solutions. Dissolution of sodium hydroxide is highly exothermic, and the resulting heat may cause heat burns or ignite flammables.
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Liquid chlorine
Chlorine is a poisonous, greenish-yellow gas described as having a choking odor. It is a very corrosive, hazardous chemical. Usually combined with other chemicals, it is used to disinfect water, purify metals, bleach wood pulp and make other chemicals. Household bleach, used to whiten fabrics or remove mold from surfaces, is a 5% solution of a stabilized form of chlorine. Do Not Mix household bleach with acid-containing or ammonia-containing cleaners. Dangerous levels of a very harmful gas can be released. Most of the chlorine that enters lakes, streams, or soil evaporates into the air or combines with other chemicals into more stable compounds. Chlorine-containing chemicals that seep through soil down into groundwater can remain unchanged for many years.
DO STANDARDS EXIST FOR REGULATING CHLORINE? Water: The proposed federal drinking water standard for chlorine is 4 parts per million (ppm).
Many city water supplies are treated with chlorine to reduce the possible spread of bacterial disease. The system operators are required to maintain a detectable level of chlorine in the piping system. We suggest you stop drinking water that contains more than 4 ppm of chlorine on a regular basis.
Air: No standards exist for the amount of chlorine allowed in the air of homes. We use a
formula to convert workplace limits to home limits. Based on the formula, we recommend levels be no higher than 0.01 ppm of chlorine in air. Most people can smell chlorine when levels reach 0.02-3.4 ppm. If you can smell chlorine in your home, the level may be too high to be safe. The Wisconsin Department of Natural Resources regulates the amount of chlorine that can be released by industries.
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Organ Systems: The main effects of exposure to chlorine gas include diseases of the lung and
tooth corrosion. People with previous lung disease, smokers, and those with breathing problems are more sensitive to chlorine
Cancer: There is no information currently available about whether chlorine causes cancer. Reproductive Effects: No reproductive effects from chlorine exposure have been reported.
In general, chemicals affect the same organ systems in all people who are exposed. A person's reaction depends on several things, including individual health, heredity, previous exposure to chemicals including medicines, and personal habits such as smoking or drinking. It is also important to consider the length of exposure to the chemical; the amount of chemical exposure; and whether the chemical was inhaled, touched, or eaten. People with preexisting lung or heart disease may be particularly sensitive to the effects of chlorine. Chlorine can be prepared by removing the hydrogen from hydrochloric acid using an oxidizing agent. Any oxidizing agent such as manganese dioxide, lead dioxide, trilead tetroxide, potassium permanganate or potassium dichromate can be used. Firstly, the oxidizing agents are taken in the round bottomed flask. Concentrated hydrochloric acid is then added through a thistle funnel. This mixture is then heated. The oxygen of the oxidizing agents combines with the hydrogen of the hydrochloric acid leaving behind chlorine i.e. hydrogen is removed from hydrochloric acid. The metallic ions of the oxidising agents combine with part of chlorine to form the respective chlorides.
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near the base (one for chlorine and other for hot air) and an exit for waste gases near the top. The tower is fitted with eight shelves at different heights each equipped with rotating rakes. The slaked lime is introduced through the hopper and it comes in contact with chlorine, which slowly moves upwards. Bleaching powder is collected in a barrel at the base. The chlorine used in the manufacture of bleaching powder should be dilute and the temperature should be maintained below 40oC. Preparation of Bleaching Powder Passing chlorine gas over dry slaked lime (Ca(OH)2), gives bleaching powder. Ca(OH)2 + Cl2 CaOCl2 + H 2O (Calcium hydroxide (Bleaching Powder) or slaked lime)
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Properties:
Bleaching powder is a yellowish white powder and smells strongly of chlorine. It is soluble in water. The lime present is always left behind as an insoluble salt. For this reason it is also called chloride of lime. Bleaching powder is oxidised to chlorine when exposed to air. CaOCl2
+
When bleaching powder is treated with excess of dilute acid, chlorine gas is produced. CaOCl2 + H2SO4 CaSO4 + H2O + Cl2
Amount of chlorine gas produced is called available chlorine. It is this chlorine that is responsible for the bleaching action of calcium oxy chloride.
Uses
Bleaching powder is commonly used for bleaching clothes. It is also used in bleaching wood pulp in the paper industry. It is used to disinfect drinking water. It is used in the manufacture of chloroform (CHCl3), an anaesthetic. It is used as an oxidising agent. It is used to shrink wool
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Aluminium chloride
Aluminium chloride (AlCl3) is a compound of aluminium and chlorine. The solid has a low melting and boiling point, and is covalently bonded. It sublimes at 178 C. Molten AlCl3 conducts electricity poorly, unlike more ionic halides such as sodium chloride. It exists in the solid state as a six-coordinate layer lattice. AlCl3 adopts the "YCl3" structure, featuring Al3+ cubic close packed layered structure. In contrast, AlBr3 has a more molecular structure, with the Al3+ centers occupying adjacent tetrahedral holes of the close-packed framework of Br ions. Upon melting AlCl3 gives the dimer Al2Cl6, which can vaporise. At higher temperatures this Al2Cl6 dimer dissociates into trigonal planar AlCl3, which is structurally analogous to BF3. Aluminium chloride is highly deliquescent, and it can explode in contact with water because of the high heat of hydration. It partially hydrolyses with H2O, forming some hydrogen chloride and/or hydrochloric acid. Aqueous solutions of AlCl3 are fully ionized, and thus conduct electricity well. Such solutions are found to be acidic, indicating that partial hydrolysis of the Al3+ ion is occurring. This can be described (simplified) as:
AlCl3 is probably the most commonly used non-Bronsted Lewis acid and also one of the most powerful. It finds widespread application in the chemical industry as a catalyst for Friedel-Crafts reactions, both acylations and alkylations. It also finds use in polymerization and isomerization reactions of hydrocarbons. Aluminum chloride, like similar compounds such as Aluminium chlorohydrate, is also commonly used as an antiperspirant. Aluminium also forms a lower chloride, aluminium(I) chloride (AlCl), but this is very unstable and only known in the vapour phase.
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Chemical Properties
Aluminium chloride is a powerful Lewis acid, capable of forming stable Lewis acid-base adducts with even weak Lewis bases such as benzophenone or mesitylene. Not surprisingly it forms AlCl4 in the presence of chloride ion. In water, partial hydrolysis forms HCl gas or H3O+, as described in the overview above. Aqueous solutions behave similarly to other aluminium salts containing hydrated Al3+ ions - for example giving a gelatinous precipitate of aluminium hydroxide upon reaction with the correct quantity of aqueous sodium hydroxide: AlCl3( aq) + 3NaOH( aq) Al(OH)3( s) + 3 NaCl( aq)
Preparation
Aluminium chloride is manufactured by the exothermic reaction of the elements, aluminium and chlorine. It is commercially available in large quantities.
HYDROCHLORIC ACID:
Hydrochloric acid is produced along with the industrial preparation of caustic soda (sodium hydroxide). During the electrolysis of sodium chloride, large quantities of hydrogen and chlorine gas are obtained as by-products. These two gases are burnt to form hydrogen chloride gas. The hydrogen chloride gas so formed is dissolved in water to form hydrochloric acid. A saturated solution of the acid has a density of 1.2 g cm-3. It contains about 40% by mass of hydrogen chloride.
USES
Steel Industry - For pickling .
Ossein / Gelatin - To treat animal skin , bones for making ossein . Chemicals - Calcium Chloride , Phosphoric acid , Chlorosulphonic acid , FeC13 . - Cationic regeneration .
De-mineralisation Plant
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Sodium Hypochlorite
Sodium Hypochlorite is a greenish-yellow liquid commonly referred to as "Bleach." The chemical compound formula for Sodium Hypochlorite is NaOCl. Sodium Hypochlorite is prepared by reacting dilute caustic soda solution with liquid or gaseous chlorine, accompanied by cooling.Sodium Hypochlorite is the main ingredient in laundry bleach. It is used extensively as a bleaching agent in the textile, detergents, and paper and pulp industries. It is also used as an oxidizing agent for organic products. In the petrochemical industry, sodium hypochlorite is used in petroleum products refining. Large quantities are also used as a disinfectant in water and wastewater treatment and sanitary equipment. In food processing, sodium hypochlorite is used to sanitize food preparation equipment, in fruit and vegetable processing, mushroom production, hog, beef and poultry production, maple syrup production, and fish processing.
USES
Chlorine bleach, sodium hypochlorite (NaOCl), is a very useful and inexpensive disinfectant. A disinfectant kills germs that can make people sick. Sodium hypochlorite is just one of the common chlorine disinfectants; chlorine gas (Cl2) and solid calcium hypochlorite [Ca(OCl)2] are two others. Sodium hypochlorite solutions are also used to disinfect many types of surfaces in hospitals, medical labs, doctors' offices and nursing homes to prevent the spread of infection
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among patients, residents and workers. This is pretty important when you realize that people in hospitals and nursing homes are sick or elderly and therefore unable to fight off infections as well as healthy people can.Sodium hypochlorite is used in safe food production and preparation. It is added to water in amounts that are known to destroy germs that are associated with raw foods. Sodium hypochlorite solutions disinfect food preparation surfaces, food sorting machinery, containers and instruments of all types involved in producing, transporting and preparing the foods we love to eat.
Some customers
B.P Paul R.L Rasayan udyog Shree Ram Chemicals U Chemicals Industries Vijay Lakshmi Enterprise.
2 Set in order
Arrange needed items so that they are easy to use and liable them so that one can find them and put them away.
3 Shine
To keep work place swept and clean
4 Standard
It is the reasons that exist properly maintain this integrated sort set in order and shine in unfilled whole.
5 Sustain
To make a habit of properly maintaining current procedures.
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ORGANIZATION STRUCTURE
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ORGANIZATION DESIGN
Organization Design is a formal, guided process for integrating the people, information and technology of an organization. It is used to match the form of the organization as closely as possible to the purpose(s) the organization seeks to achieve. Through the design process, organizations act to improve the probability that the collective efforts of members will be successful. Typically, design is approached as an internal change under the guidance of an external facilitator. Managers and members work together to define the needs of the organization then create systems to meet those needs most effectively. The facilitator assures that a systematic process is followed and encourages creative thinking.
HIERARCHICAL SYSTEMS
Western organizations have been heavily influenced by the command and control structure of ancient military organizations, and by the turn of the century introduction of Scientific Management. Most organizations today are designed as a bureaucracy in whom authority and responsibility are arranged in a hierarchy. Within the hierarchy rules, policies, and procedures are uniformly and impersonally applied to exert control over member behaviors. Activity is organized within sub-units (bureaus, or departments) in which people perform specialized functions such as manufacturing, sales, or accounting. People who perform similar tasks are clustered together. The same basic organizational form is assumed to be appropriate for any organization, be it a government, school, business, church, or fraternity. It is familiar, predictable, and rational.As familiar and rational as the functional hierarchy may be, there are distinct disadvantages to blindly applying the same form of organization to all purposeful groups.To understand the problem, begin by observing that different groups wish to achieve different outcomes. Second, observe that different groups have different members, and that each group possesses a different
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culture. These differences in desired outcomes, and in people, should alert us to the danger of assuming there is any single best way of organizing. To be complete, however, also observe that different groups will likely choose different methods through which they will achieve their purpose. Service groups will choose different methods than manufacturing groups, and both will choose different methods than groups whose purpose is primarily social. One structure cannot possibly fit all.
ORGANIZING ON PURPOSE
The purpose for which a group exists should be the foundation for everything its members do including the choice of an appropriate way to organize. The idea is to create a way of organizing that best suits the purpose to be accomplished, regardless of the way in which other, dissimilar groups are organized. Only when there are close similarities in desired outcomes, culture, and methods should the basic form of one organization is applied to another. And even then, only with careful fine tuning. The danger is that the patterns of activity that help one group to be successful may be dysfunctional for another group, and actually inhibit group effectiveness. To optimize effectiveness, the form of organization must be matched to the purpose it seeks to achieve.
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Creating a strategy is planning, not organizing. To organize we must connect people with each other in meaningful and purposeful ways. Further, we must connect people with the information and technology necessary for them to be successful. Organization structure defines the formal relationships among people and specifies both their roles and their responsibilities. Administrative systems govern the organization through guidelines, procedures and policies. Information and technology define the process (es) through which members achieve outcomes.
EXERCISING CHOICE
Organizations are an invention of man. They are contrived social systems through which groups seek to exert influence or achieve a stated purpose. People choose to organize when they recognize that by acting alone they are limited in their ability to achieve. We sense that by acting in concert we may overcome our individual limitations. When we organize we seek to direct, or pattern, the activities of a group of people toward a common outcome. How this pattern is designed and implemented greatly influences effectiveness. Patterns of activity that are complementary and interdependent are more likely to result in the achievement of intended outcomes. In contrast, activity patterns that are unrelated and independent are more likely to produce unpredictable and often unintended results. The process of organization design matches people, information, and technology to the purpose, vision, and strategy of the organization. Structure is designed to enhance communication and information flow among people. Systems are designed to encourage individual responsibility and decision making. Technology is used to enhance human capabilities to accomplish meaningful work. The end product is an integrated system of people and resources, tailored to the specific direction of the organization.
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MARKETING DEPARTMENT
The advent of globalization has brought marketing to the forefront of all the business activities. Increased competition has resulted in a customer driven market with ever rising consumer expectations. At Vishnu Chemicals, marketing is not merely identified innovative measures to sell its products, but to proactively gauge their changing needs and produce accordingly. Indian chemical industry clocked an impressive growth during FY 11-12. As against it, Vishnu chemicals group registered a growth in sales volume. Net sales value showed rise.
MARKET SHARE
Vishnu chemicals strategy of quality advertising combined with active field marketing helped it increase its market share in south India. Company maintained its leadership position in the key market of Andhra Pradesh and Tamilnadu. Company increased its market share in south India. Our focuses on increasing marketing share in areas which are closer to their plants offer them the advantage of low radius. The strategy benefited them in significantly increasing their market share in the nearer markets of Andhra Pradesh and Tamilnadu. Going forward they aim to further consolidate and increase our presence to attain the leadership mantle in the entire south Indian market
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Product Report
SL.No. Name of Product Product Main 1 2 3 4 5 6 Custic soda lye Liquid Chlorine Sodium hypo chlorite Aluminium chloride Stable bleaching powder Hydrochloric Acid V By Product Consumption/Sale Sister unit customer Place India Both
MARKET SEGMENTATION:
The priority of Vishnu chemicals is to marked its product in such a way the supply and demand of homogenous and heterogeneous pattern informally more popular as most of its products are organic and inorganic chemicals when every products are in liquid form the segmentation of market area is decided in such a way that customer are near to main complex of VISHNU CHEMICALS. The products like caustic soda lye, hydrochloric acid, liquid chlorine and hazardous nature are sufficient for its safe handling are taken. It is proffered to have sales as near as possible.
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Pricing policies:
The main aim behind formulating policies of organization is obviously to fetch minimum return i.e. Best prices of its products while deciding the policies, the producer has to consider the following: The cost of Raw material The fixed and variable cost The administration cost Marketing cost including commission of distribution channel The statutory liabilities
The above factors play a vital role in determining the prices for demand and supply scenario prevailing in domestic and global market.
Channel of distribution:
In the field of marketing channel the distribution indicator routes through which goods and services flow or moves from producers to customers. The route of channel includes the manufacturers and the ultimate cumulative as well as all intermediatories VISHNU CHEMICALS has been gathering all the three channel of distribution as under For large consumers public sector like NTPC, ONGC, etc. the company has adopted the zero level channel of distribution where the manufactured goods are sold directly from manufacturer to consumer hence channel of distribution. For medium scale consumer where price negotiation and transportation arrangement payment follow up are regularly requisite and the quantity requisite is not very large VISHNU CHEMICALS has adopted first level of channel of distribution as under. Manufacturing dealer, trader, sub dealer sales In VISHNU CHEMICALS the product are sold out of two ways
Through dealers:
The company appoints same dealers to sell its products. Such dealers work for the company discovers the customers negotiation with them and try to expand the market. They charge some commission for their duties .
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The company also enters in to direct contact with other large companies like NTPC , IPCL, IOC ,IFFCO, etc. both the parties negotiate with each other directly and if the terms and condition of contract is accepted mutually.
Sales promotion:
Sales promotion is very vital for any company to increase its sales promotion is mainly done in three ways. Advertisement
Samples Discount
Vishnu chemicals sales promotion is mainly done by two ways. Giving sample of product to customer Credit facilities up to 30 days
Apart from these two mains VISHNU CHEMICALS has no particulars sales promotion policy. The company is striving to makes better one forts great goodwill and maintain good relationship with customers. Main customers of VISHNU CHEMICALS INDIAN OIL CORPORATION NATIONAL THERMAL POWER PLANT HINDALCO TATA CHEMICALS SRF STELL AUTHORITY OF INDIA LTD. CENTURY PULP & PAPER LTD. PATRATU THERMAL POWER STATION.
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EMPOWERING PEOPLE
At Vishnu chemicals they consider their people as their greatest assets. They drive growth and achieve long term sustainability of their business. Their culture fosters differential thinking, empowering people by investing in their professional growth. The company strives to be recognizing as the best place for the best people to do the best work.
PROMOTING PROGRESS
A Vishnu chemical prides itself in promoting progress by creating and maintaining a work environment which is conducive to both professional and personal growth. The exceptional performance of people manifests itself in the overall performance of the company and growing outlay for human resources.
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TALENT MANAGEMENT
Vishnu chemicals believes the right mix of talent is the key to rip the benefit and avail of the business opportunities presented by current pace of globalization. Vishnu chemicals has an excellent combination of professional competencies in its workforce be in managerial and technical.
ENCOURAGING INNOVATION
At Vishnu chemicals , spirit of innovation permits through every run of employee. Company encourages original thoughts which translate into action that yield benefit. A unique scheme has been running for past many years to encourage the employees to suggest innovative ideas towards cost reduction, process improvement, and energy & environment conservation. Good ideas are recognized and rewarded at company gathering.
PEOPLE
CREATING LEADERS AT EVERY LEVEL RECOGNITION AND REWARD SCHEME MULTISKILL DEVELOPMENT TRAINING PROGRAMME ASCENT PROGRAMME
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The company started the concept of multi skilling to optimize manpower, enhance skill sets and to facilitate cross-functional development. Unlike other organizations who introduce multiskilling for high fliers, the company started this concept first for its workers.
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Reason: The Company faced a problem of surplus workers. Other organizations would have resorted to retrenching and lying off, but this is not Vishnu chemicals philosophy. Vishnu chemicals optimally utilized its surplus strength by developing worker skills in other technical process. This helped the company build in a redundancy factor wherein at any given point there was always a skilled set of people for any function. The company reduced overtime through efficient manpower utilization, organized smooth functioning of the production cycle, increased job security leading to a greater sense of belonging and strengthened industrial relations. As a result the company did not lose a single day's work due to strikes or lockouts. Employees were deputed for multi skill training of fitter trade in different Industrial Training Centers. Following the success of multi-skilling with workers, the company introduced this concept with staff members. The objective was to enhance competencies and to enable managers understand how an initiative taken by their department could affect the productivity and performance of another department. This broadened the outlook of staff members, making them think like business managers.
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Power Consumption
Vishnu chemicals strive to reduce power consumption. It regularly invests in adoption of new technology and practices for reducing its usage of power. Its installed and replaced a range of energy efficient equipments in the year such as high efficiency fan and motors, VFD etc. it continually looks at the ways to reduce the idle running of equipment. The additional cost well recovered through better price realization.
Quality Philosophy
The Companys quality obsession covers the following:
Holistic perspective covering all organizational functions. Continuous improvement in standards. Continuous reduction in cost Strong focus on start of the pipe solutions instead of end-of-the-pipe reviews. Lapse prevention focus as opposed to a fault-finding culture. Strong documentation process that enables product complaints to be traced swiftly and effectively to the root problem.
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Quality Assurance
Vishnu chemicals with certificates that testify to the high production standards achieved
by the company.
Quality Initiatives
Vishnu chemicals possess one of the few R&D centres in the Indian chemical industry. This center has been recognized by the Government of India. The research team is headed by a highly qualified and experienced scientist. Vishnu chemicals R&D centre has directly contributed in the conservation of electrical and thermal energy, an improvement in product quality, cost reduction, mineral conservation.
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FINANCE DEPARTMET
The account department is involved in monitoring the functions of other department thus ensuring that the unit is functioning as per plan though with minor deviation.Important functions constitute the following: Planning and budgeting C.V.A [Cash Value Added] calculations Bill passing for the supplier as well as the contractors. Cash as well as bank transactions MIS related activities such as generation of MIS and review meetings from corrective actions. Planning and budgeting activities are done once a year and budgets so formed are reviewed quarterly. Quarterly revisions or estimates are essential to transform the yearly data contained in the budget to operational data pertaining to the immediate quarter incorporating there in any factors that might have escaped notice during the budget preparation due to the any reason. Deviations from the budgets are reported in the MIS (CVA is calculated annually for assessing the performance of the unit in cash terms. Delta C.V.A gives the idea of the cash value additions done during a year. Separate cash affiliated to the accounts department does bill passing activity. The payment of the bill is done in the accounts department. MIS generated from accounts department contains details of the functioning of all the departments in the line of the consumption patterns of all the products as well as the by products etc. If there are any deviations from the budget or the quarterly estimates that are serious in natural then there deviations are discussed in the monthly review meetings. performance has posted a good performance with all round improvement production, sales and in profitability. A strong demand for celluloic fibre coupled with the companystrategy on specilty fibres has driven the performance.
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Time office:
The main function of this department is to maintain the records such as Attendance, Leave and Pay role. They also maintain records of the management, such as the Employee State Insurance (ESI) Provident Fund (PF), Attendance of each employee are maintained by issuing the SWAP cards to the individuals. The timings of office workers depend on the rules of the government body. There are 2 major shifts for the workers to work at different time intervals.
Allocation of funds
FMP= 70% FD= 20% Liquid funds= 5% Debt fund= 5%
BANKERS
Andhra Bank, Bank of India, Bank of Maharashtra, Federal Bank, Indian Bank, Indian Overseas Bank, Oriental Bank of Commerce, Punjab National Bank, Union Bank of India
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Chromic Acid
25 kg, 50 kg steel drum with locking ring. Then pelletized and stretch wrapped.
Aluminium chloride
It is packed in LDFE(Low density polyethelene) bag with pvc liner or GI drums the storage capacity of bags is 25 k.g.and capacity of blue plastic drums is 50 k.g The transportation of aiumonium chloride through trucks.
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In house Ancillaries For utlising of haradous chlorine the VISHNU CHEMICALS has in house ancillaries:
1. 2. 3. 4. 5. Manav Chemicals Competent polymers KG Industries Sudarashan chloride Sumangal chloride
Input materials
1. 2. 3. 4. 5. 6. Alt Coal Lime Aluminium Barium carbonate Packing bags
40MT
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SAFETY DEPARTMENT
The chemical industrial sector is highly heterogeneous encompassing many sectors like organic, inorganic chemicals, dyestuffs, paints, pesticides, specialty chemicals, etc. Some of the prominent individual chemical industries are caustic soda, soda ash, carbon black, phenol, acetic acid, methanol and azo dyes. Chemical manufacturing sector in India is well established and has recorded a steady growth in the overall Indian industrial scenario. The Chemical and allied industries have been amongst the faster growing segments of the Indian industry. The Indian chemical industrial sector had a turnover of around Rs.1200 billion in 2001-2002. The chemical exports also accounts for more than 16.20% of the total Indian exports during 2001-2002. occasionally there are disasters like the one in Bhopal, India, in 1984, where lakhs of people were affected and LPG explosion in Vizag refinery where huge property damage in addition to 60 deaths was experienced. Therefore chemicals have the potential to affect the nearby environment also.Design and Pre-modification review : Improper layout like location of plant in down wind side of tank farm , fire station near process area , process area very close to public road and wrong material of selection had caused severe damages to the work and outside environment
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The first two types of risks are of universal nature associated with any industrial activity and not specific to a particular plant or process. Mechanical risks which are generally encountered are injuries to the head, Limbs, eyes, etc usually as a results of negligence on the part of operating/maintenance personnel in the use of improper tools, bypassing prescribed safety procedures neglect of personal protective wear and risks associated with rotating machinery as well as risks associated with high-energy release from compressed gases. Electrical risks which result in shock and/or burns are most often a consequence of poor maintenance, ingress of dust or moisture, handling by unauthorized personnel and use of improper/substandard hardware.
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1) About home safety 2) About road safety 3) About working on machines and guarding 4) About working with dangerous chemicals 5) About working on heights 6) About electrical safety 7) About use of LPG 8) About static electricity 9) About Fire 10) About Noise pollution 11) About Air / Dust pollution
Safety Calendars
Safety Calendars received from National Safety Council, Bombay having 07 pages of different safety pictures are distributed for putting on the wall at conspicuous places in offices, canteen, control rooms of the plant for educating employees on safety aspects.
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Whenever an accident takes place, the initiation of the format is done by the Shift-incharge of the particular area. Logging is done. The Safety department investigates minor accidents and the major ones by suitably constituted committees, "Near-miss" cases are also investigated, and actions are taken to prevent recurrence. All accident/ Near-miss cases are discussed in Central Safety Committee Meetings. Recommendations of Safety Committee are percolated down to the shop floor and ensure their implementations. This particular sample analysis has been carried out to identify where the hazards lie and how it culminates into an accident. Some of the obvious and logical causes like electricity, which is the major contributor to any accident. Supporting this, the equipment involved also belong to the electrical supply or carrier. The location storage figures on the top of the activity, which shows that there are less attention paid by the industries to storage area. In fact storage needs greater care and safety as the quantities are large and the effects would be greater in case of even minor failure. The only supporting and odd inference is the chemicals where cotton and polyester have figured when there are several chemicals which are highly flammable in nature are employed in the chemical process industry. Probably this indicates that little attention is paid to safety in cotton or polyester industries. The paper is only indicative based on the 100 chosen cases that the need for such an analysis to understand the trends of accidents with their causes and consequences. It is generally advised to the industries to make use of their incidents/accidents data for analysis. When industries are readyto share the information on this with an organization like CISRA it would be beneficial to the entire chemical industry as these provide valuable guidance to the Risk analysis carried out by CISRA and also for generating Reliability Data base for Indian Industrial conditions.
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Although, Fire, explosion and release / leakage of toxic chemicals may lead to Major accident, all necessary safety measures have been duly incorporated in the plant design and regular up gradation of safety appliances is carries out.
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Plant Design
All Plants are designed with a great deal of safety. The whole plant is open with proper lay out of pipe lines, trenches, cables and flame proof lighting arrangements. A proper spacing between the equipments, reactors, pumps, turbines, and compressors has been kept. Insulation of pipe lines, vessels have been done wherever required. Proper marking, arrows, colour coding has been done for convenience and statutory requirements. Control room with emergency doors and safety equipments are established. Safety trip systems with alarms and trip relays (intrinsically safe) have been provided to control and safe shut down of the plant during emergencies. Stacks for furnaces and flare stack for burning of vent / excess gases of 30 M. height have been provided. Safety valves, Rupture discs, explosion vents, vacuum breakers have been provided as extra safety precautions other than automatic tripping of concerned equipment / unit in case of any abnormality. All safety measures have been adopted to ensure safe handling and operation of these plants. Safety devices are of adequate sizes. Waste disposal being done with great care.
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WEAKNESSES:
Complexity of operation Lengthy processing chain Weak financial risk profile
OPPORTUNITIES:
Growth of core sector industries Rapid integration with global economy Booming construction business in asia
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THREATS:
Entry of global players Take over possibilities Political threats The impact of foreign currency fluctuation and interest rates. Loss of sales to substitutes
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SUGGESTION:
VISHNU CHEMICALS should try to invite more ancillaries for utilizing the chorine and HCL. Star brands can be used for promoting companys existence, as it is one of the cheapest and most effective sources.
Target the rural population which is one of the biggest untapped area.
VISHNU CHEMICALS should focus mainly on those customers who are comparatively nearer to reduce the transportation cost. Generate some innovative and alternative channels of distribution. VISHNU CHEMICALS should evaluate cost benefit if it set up its own transportation system. VISHNU CHEMICALS should increase the capacity of captive power plant to get the cost benefit of power.
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CONCLUSION
The study through the project training in Vishnu chemicals , Hyderabad has enabled me to understand various aspect of product & marketing to establish a better environment with overseas customer. This is not only enhances my practical knowledge but also help me to know about the product marketing of a company/firm concern The study of marketing helped me mix my theoretical knowledge with the practical knowledge .This practical experience has helped me in improving my personal attribute too. I sincerely hope that this project training will go a long way in shaping my carrier in marketing . The Vishnu Chemicals has a very rich history and spread over the India .Vishnu chemicals has a strong competitive position in the market with rapid growth. It needs to use its internal strengths to develop a market penetration and market development strategy. Further company should integrate with other companies, acquisition of potential competitor businesses, innovation in branding and aggressive marketing strategy can bring long term profitability.
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BIBLOGRAPHY
Websites:
www. Vishnuchemicals.com www.scrbid.com www. chemindia.org www.economicstimes.com www.moneycontrol.com
kotlar Philip, Marketing Management, Pren Tice-Hall of India Pvt Ltd. New Delhi Asawathappa, Human Resource Department of Marketing, finance, human resource management, packing & transportation, safety department VISHNU CHEMICALS
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