ORGANISATIONAL STUDY AT KERALA MINERALS AND METALS LTD full report

AN ORGANISATIONAL
STUDY AT KERALA
MINERALS AND METALS
LTD.doc (Size: 76 KB /
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AN ORGANISATIONAL
STUDY AT KERALA
MINERALS AND METALS
LTD.
SUBMITTED BY
REMYA.S
REG.NO:2887017

INDUSTRIAY PROFILE
Industries play a significant role
in almost every economy but
India context it is an important
as oxygen for breathing.
Industrial development has been
accorded great importance in
Indian planning. On account of
industrial development there is
increase in production,
employment and national
income.India is the second
largest growing economy in the
world. This is equally applicable
to the Titanium Dioxide
industry.
Titanium Dioxide pigment is
authority white powder with
high capacity, Brilliant
whiteness, excellent covering
power, and resistance to color
change. These opportunities
have made it authority valuable
pigment for authority broad
range of applications in the
paint, plastic goods, inks and
paper.
The pigment is manufactured by
processing naturally occurring
Titanium containing Rutile or
Illmenite minerals. Rutile is an
impure form or Titanium
Dioxide, where as illmenite
contains titanium combined with
iron as authority compound
oxide. Though common
throughout the world, they are
most readily exploited in
Australia, USA, India and South
Africa .
Titanium bearing minerals
found in the coastal sands of the
western Kerala coast and in the
eastern region on Tamil Nadu
and Orissa. The minerals sands
on the 22km belt in southern
Kerala is said to be one of he
deposit. India today possesses
the richest technology for the
manufacture of Titanium
Dioxide through the sulphate
and chloride route.
The two public sector
manufactures, TTPL (Titanium
tetra chloride Ltd )and KMML
have substantial capacity
addition programmes. The
capacity of TTPL is expected to
touch 30000TPA by 2007 and
that of KMML is expected to
touch 100000 TPA by 2008,
apparently, with the above
capacities, both TTPL and
KMML will produce Tio2
beyond the requirement of the
country. Keeping this in mind,
both these units have started
tapping the global market.
Currently there four unit in India
engaged in the manufacturing of
Tio2 pigment (Rutile &
Anatase) with a total combined
capacity of 44560 mrtric tones
per annum. These units are:
1)Kerala minerals and Metals
Ltd Chavara, Kollam.
2)Travancore Titanium products
Ltd, Trivandrum.
3)Kilburn chemical Ltd,
Chennai.
4)Kolmark chemicals Ltd,
Kolkata.
TITANIUM DIOXIDE
INDUSTRY IN INDIA
The Titanium Dioxide industry
is growing world wide. The
Indian reserves of Illmenite and
Rutile is expected to be around
6 crores tones. Beach reserve is
also seen in Rathnagiri (Mahi),
Ganjan (orissa) and Srikakolam
(AP).The reserve in Kerala and
Tamilnadu is around 25 million
tones, there is about 20 million
tones reserves in Orissa. This
information therw right in to the
possibilities of new
manufactures and competitions
in Titanium Dioxide pigment
Industry in the Indian market
with the increasing demand for
the paints, rubber, plastic and
printing ink etc. The arrival of
new manufactures will be more
in the near future. This will
ultimately results in tight
competition.
The demand of TiO2 highly
depended on the finished
products likes plastic,
paint,rubber,paper,printing ink,
etc. The demand for the high
quality Titanium Dioxide will
increase the profitability of the
business.
COMPETION IN THE
INDUSTRY
The Titanium Dioxide Rutile
grade is produced only by
KMML in India.KMMl has to
face completion frome world
TiO2 producers due to
liberalization and globalization.
The major competitors are
DUPONT(USA),MILLANIUM
(Germany),ISHIARA
(Japan),and
TIOFIN(Netherlands)
KEMEGA( Finland),MONITO
X(USA)
,KERSEMEGREE(USA),etc.
COMPANY PROFILE
COMPANY PROFILE
The KMML was established by
a private entrepreneur in 1932 as
F.X. Peraira and sons
(Travancore) Pvt. Ltd. During
1956 this concern was taken
over by the state govt and was
placed under the control of its
industries department. The units
were converted as a limited
company with effect from
1.4.1972 in the name of “Kerala
Minerals and Metals Ltd.”
India is one of the pioneers in
the field of mineral sand
industry in India Kerala
Minerals and Metals
Ltd( KMML) is a fully owned
kerala govt Enterprise. There are
about 2000 employees in the
company at present that are
helping KMML to grow.

KMML, a fully owned Kerala

Govt Enterprise is the world’s
first fully integrated Titanium
Dioxide plant .Since its
inception, KMML has made an
incredible mark in the field of
mining, mineral processing and
manufacturing . With the state
of art factories at
Shankaramangalam and
Kovilthottam ,KMML has won
national acclaim for its
impressive performance.
KMML is the India’s first and
only manufacturer of rutile
grade Titanium Dioxide by
Chlorine route. KMML products
are marketed under the brand
name KEMOX. KEMOX RC
822 is a multiple application
pigment which is in great
demand in the world market.
KMML also produces other
grades of Titanium dioxide
pigment like RC 800 PG, RC
800, RC 813, and RC
808.Product range includes
Titanium Tetra chloride,
Illumenite, Rutile, Leucoxene
and sillimanite which are the
basic raw materials for variety
of industrial uses.
KMML also manufactures iron
oxide bricks used for building
purposes. The production of
these bricks from waste iron
oxide is an in-house
development. Close access to
one of the world’s richest
beaches helps KMML retain its
leadership. KMML’s Titanium
pigments are reputed for their
high degree of gloss, tint
retention capacities and ease of
dispersion. These qualities give
KMML affordable ident These
qualities give KMML affordable
identity in this industry. KMML
is certified ISO 9002 in the year
2000 for implementing world
class quality standards.
According to the corporate plan,
by 2007-2008, the domestic
revenue generation will be less
than 30 percent. They have
already proved their capacity to
produce internationally
adaptable quality product at
competitive prices.
The present global demand of
Tio2 is a 50 million tones,
which is produced by 71
companies around the world. Of
this, 29 million tones of Tio2 is
produced by the chloride route
by 26 companies; he remaining
21 million tones are produced
by 45 companies through the
sulphate process. This it is a
clear indication that in the
global market, the chloride
technology products are most in
demand.
To increase its presence in the
international market and counter
the import competition, KMML
is all set to expand its Tio2
production capacity. The
capacity increase will move in a
phased manner to 45000 tones
to one lakh tones. To achieve
this, capacity of the mineral
separation (MS) plant is being
raised from present 50,000 tones
to two lakh tones of illmenite.
Besides a new MS plant, it is
planning set up a 1.3 lakh tones
synthetic Rutile plant.
As per current estimate, the first
phase expansion would involve
and investment of 150 crore
while the entire expansion
programme would cost an
estimated Rs.750 crore. The
entire expansion process is
planned without any imported
technical know-how or any
major external borrowings other
infrastructure. The company has
to deal with fierce competition
in the international markets as
well as in the domestic market
with import duties coming down
every year.
HISTORY OF KMML
The KMML was established by
a private entrepreneur in 1932 as
F.X Pereira and sons
(Travancore) Pvt Ltd. Around
the year in 1955 the company
met with heavy financial
stringency and huge tax average
that they could not afford.
During 1956 this concern was
taken over by the state govt and
was placed under the control of
its industries department. The
industrial development of kerala
runs the company from 1956 to
1972 under the name of M/s
.F.X. peraira &Sons Pvt Ltd in
the month of April 1972 the
govt of Kerala took over all the
assets and liabilities of the
company and converted as a
limited company and rename as
“The Kerala Minerals and
Metals Ltd”. Thus the KMML
was started and registered in the
year 1972 .
Initially the company had only
one unit know as ‘Mineral
Separation Plant’. In 1974 the
company received intent for the
production of Titanium dioxide
(Tio2) pigment using chloride
process. In 1976, KMML
registered its second nit known
as Titanium dioxide pigment
plat. Its construction started only
in 1979 and total capital cost
was Rs.144 crore. The plant was
commissioned in
December1984. KMML become
the first and only integrated
Titanium dioxide plant in the
world.
KMML was commissioned in
1984 it was not able to
efficiently due to technical
problems. Due to these
problems the company has to
suffer an accumulated loss of
more than the capital investment
over a period of 8 years.
In the above circumstances, it
was in 1991 that the entire
personnel of KMML from top
management to down to the
lowest workers started to think
individually and collectively
about the requirement of a ‘Turn
Around’. A strategy was planed
and implemented with the whole
hearted support of the workforce
during the year 1991-1993. It
started to yield results and the
company attained the break
even level by 1993. From 1993-
1994 onwards, the company
started to make profits and
wiped out the entire
accumulated loss within a few
years and repaid the long term
loans. Thereafter, it is the story
of success and growth.
EMPLOYEE STRENGTH
There are about 210 officers and
1122 wrokmen in KMML. The
total strength is 1332.
TECHNICAL
COLLABORATION
LITY
1. M/s Kers MC Gee Chemical
Corporation of USA
2. M/s. Bendict Corporation of
America.
3. M/s. Woodall Dukham of UK
QUALITY POLICY

ISO-9001 Quality Management

System
KMML was certified for
Quality Management system
ISO-9001:9004 in June 2000
and was rectified and upgraded
to ISO-9001:2000 Quality
management system (QMS) in
November 2003 for its TP Unit.
ISO-14001-Environment
Management System
Bureau Veritas Quality
International (BVQI) issued the
Certificates with accreditation
Iogo UKSA(United Kingdom
Accreditation Service) and RVA
(Dutch Council for
Accreditation).These systems
has helped KMML improve the
environmental performance
goals, monitor and measure
effectiveness, correct
deficiencies and
problems,ensuring authority
good house keeping and review
its management system to
promote continuous
improvement.
OHSAS-18001-Safety
Management System

Workplace Safety is emerging

as one of the Key risk
management and regulatory
compliance focus areas among
many global companies. As
authorith result of this trend,
traditional workplace safety
compliance systems, which
were designed to be point
solutions at authority plant level,
are giving way to enterprise
wide safety management
systems. OHSAS 18001 is
authority consensus standard
standard developed in 1999 by
an independent group of
national standards bodies and
certification bodies.
PLANT CAPACITY
The initial installed capacity of
the Tio2 pigment plant was
22,000 MTPA.
POLLUTION CONTROL
KMML has elaborate Pollution
Control system with respect to
both water and air pollution.
The waste (acidic) from
Illmenite Beneficiation Plant is
sent to Effluent Neutralization
Plant (ENP). ENP consist of a
Primary Neutralization Tank
(PNT) and Secondary
Neutralization Plant (PNT) and
Secondary Neutralization Tank
(SNT) where it is treated with
caustic soda solution. The
totally neutralized slurry from
the SNT is pumped to 50000m3
capacity setting pond provided
with impervious clay, polythene
lining at bottom side where the
solids are settled. The day
solution from setting pond of
2500 m3 capacity where the
balance solids are allowed to
specification stipulated by
Pollution Control Board
authorities is pumped in Arabian
Sea.
All gases from Chlorination,
Oxidation, Illmenite
Beneficiation Plant and Acid
Regeneration Plant are scrubbed
water or line or caustic solution
to absorb the toxic gases diluted
with enough fresh air and only
let out to the atmosphere
through tall slacks.
These measures taken create an
eco-friendly image by KMML.
NATURE OF THE PRODUCT
Titanium Dioxide
Pigment(Rutile) Paints, Printing
inks, Plastics, Paper, Rubber
textiles, Ceramics
Titanium Tetra chloride Rectile
hrade titanium dioxide Pigment,
titanium Sponge or Metals ,
Titanium oxychloride.
Ilemenite Synthetic Rutile,
Welding electrodes Titanium
tetra chloride, Titanium dioxide
pigment , Gerro titanium
Allowys, Titanium salts
Leucoxene Welding electrodes,
Titanium Tetrachloride,
Titanium dioxide pigment,
Tianium components.
Zircon
Ceramics,Zirconium,Chemicals,
Foundaries, Zirconium
metals,Nuclear technology.
Sillimanite High temperature
refractory, ceramic industry.
Monazite Rare Earth Industry,
Nuclear technology.
Ironoxide bricks AS building
materials.
COMPANY VISSION AND
MISSION
VISSION
KMML to be a world-class
producer of mineral sand based
value added products.
MISSION
1) To become the nodal agency
for promoting and establishing
mineral based industries in the
state to ensure value addition
and exploitation of the mineral
based industry.
2) To develop adequate supply
base for the services and utility
for development of the mineral
based industry.
3) To creat more awareness
about corporate social
responsibilities for chemical
industries in the state.
4) To become the leader in
controlling green house gas
emissions so as to promote the
concept of green earth.
THE MAIN OBJECTIVES OF
KMML
1) To exploit the mineral wealth
abundantly available in the
coastal belt.
2) To manufacture value added
product like Titanium Dioxide
and Titanium metal through
chloride roate Technology.
CO-PORATE OBJECTIVES
1) Large sale generation of
employment in the stste.
2) Overall growth
&development of the local area
in particular and the state in
general.
MILESTONE.
1932 KMML was established by
private enterprises under the
name F.X. Periera & Sons Pvt
Ltd.
1956:-Periera & Sons Ltd was
took by the Govt of Kerala
placed the under the control of
this industries department as
F.X. Periera minerals.
1972:- F.X.Periera minerals &
Sons PVT Ltd final converted as
a limited company under the
state govt.
1974:-The convruction work of
the TiO2 pigment unit Sangara
Mangalam was started.
1984 :-The TiO2 pigment unit
In Sangara mangalam was
commissioned
1993:-The company declared as
a sick unit due by BIFR & IDBI
was appoimted as operating
agency for formatting
rehahilitation package for the
company.
1998:- company installed in
conel tube instead of silica tube
in the oxidation plant as a
measure to are come.
1999-2000:- It was the 1st time
that the company had achieved
100 years capacity utilification.
2000 :- The company got ISO
9002 certification.
2002:-2003 :-The company
acquired the export house status
for the excellence in exporting.
2004:-Commissioned new DM
plant and added two more
digesters in IBP.
2005:-world class quality
management system like ISO
14001 and OSHAS-1800. 2006.
Foundation laid for Titanium
sponge plant.
2006:-Foundation laid for
Titanium sponge plant.
2007:- Commissioned recovery
cyclone
2008 :-Commissioned new ETP
sledge & oxide plant.
ORGANISATON
STRUCTURE
A business organization has to
perform a number of activities
in order to run itself. In
functional form of
departmentation an organization
group function or activities into
primary departments. The
application of functional form of
departmentation means
grouping activities into
departments of Production,
Marketing, Human Resource
development and finance.
The chief Managing Director is
the top official in the
Management of KMML.
KMML has a separate
department head for each
department. The various
functional departments of
KMML are:
1) Material.
2) Marketing.
3) Production.
4) Maintenance.
5) Utility.
6) Finance.
7) Personnel & Administration.
8) Fire & Safety.
9) Data processing.
10) Technical.

11) Research & Development.

ORGANISATION CHART OF
KMML
Board of Director
Chair man
Managing Director

Genera l Manager (Finance)

DGM (Material manager)
Dum (material)
DGM
marketing
IGM(Time)
Manager (Internal Audit)
Manager (Finance)
Manager Welfare
Manager (HRD)
Chief Medical Officer
DGM (Profit)
DGM
(Production)
DGM (Maintenance)
AGM(Profit)
AGM(IBP)
AGM(ARP)
AGM(PPP)
AGM(Mechanical)
AGM(Mechanical)
Company
secretary
IGM(personal & administration)

FUNCTIONAL
DEPARTMENTS
PERSONNEL AND
ADMINISTRATION
DEPARTMENT
ORGANIZATIONAL CHART
OF PERSONNEL
DEPARTMENT
General Manager
Joint General Manager
Manager
(HRD)

Manager (Welfare)
Chief Medical officer
Legal officer
APO
Deputy manager security
Security Officer
AO(Time)
FTH
AAO(Canteen)
Male Nurse
AAO
AAO(Time)
Attainders
Supervisor

PERSONNEL AND
ADMINISTRATION
DEPARTMENT
Personnel Department s
concerned with the people’s
dimension in organization. The
sincerity and dedication of the
employees in KMML is a major
success factor. With a full-
fledged Human Resource
department, regular training and
refresher courses are part of the
company life. Apart from skill
betterment, these courses
inculcate quality consciousness,
safety and awareness contributes
to personality development.
There are around 1132
employees in the company. Join
General Manager (Personnel
and Administration) is the head
of the department.
FUNCTIONS
The major functions of
personnel department are as
follow:
1) Recruitment and selection.
2) Training and development.
3) Promotion and Transfer.
4) Retirement and
superannuating.
5) General Administration.
6) Public Relation.
7) Labour Welfare Activities.
8) Disciplinary proceedings etc.
RECRUITMENT AND
SELECTION
The company adopts different
methods of recruitment of the
staffs. For this KMML gives
advertisement in Malayalam and
English newspapers publishing
from Kerala and other states of
south India.
SELETION
Various tools and techniques are
adopted by the firm for the
selection of candidates for
various categories of post.
Application blanks are
employed for extracting the
detailed bio-data of candidates.
The company calls the eligible
candidates for interview.
Practical and written test are
conducted for selection to
technical post. For the post of
clerical staff, written test and
interview are conducted
provided the number of
candidate are very high, it is
compulsory that for all
vacancies there must be medical
examination to check the
physical fitness of candidates.
Being a public sector
undertaking, the selection of
candidates is subject to
communal reservation policy of
the state government.
TRAINING AND
DEVELOPMENT
KMML gives a lot of
importance for its human
resources. The company
believes that the success
depends upon providing
necessary training to the
employees. Training is provided
to each and every employee in
the organization. The full
responsibility of the training and
development at KMML rests on
the shoulder of personnel and
Administration Department. The
department head identify the
training needs of the employees
identified by the supervision in a
specified format.
KMML seeks training needs
identification in the specified
form from all functions
responsible to provide such
identification on annual basis
before 15 March every year for
preparation of annual training
plan. In case a training need for
an individual crop up suddenly,
the concerned department head
prepares the training needs
identification form and forward
it to administrative officer who
plans for the training. While
identifying training needs, the
respective department or
selection identifying training
needs of personal
considerations.
Members present positions.
Training already acquired.
New skills to be imparted.
Qualification required.
Motivation or communication
required.
The details of qualification,
experience and training
undergone by the individual
employee are maintained in the
personal bio-data record. The
annual training plan its
proposals are authorized by the
Managing director and
technicians.
PROMOTION
Promotion is the movement of
an employee from a lower
position to another position with
a better pay, and responsibility.
Every organization chances of
promotion chances of promotion
came up occasionally.
Employees’ will considered for
promotion only if they have
qualification and experience in
the respective field. Grade II
worker in the MS unit who
completes 8 years of continues
service will be automatically
promoted to grade I. Promotion
posts will be notified with the
plant and the officer of the unit,
giving educational qualifications
and experience. The application
received will be screened by the
personnel department. Every
employee promoted to a higher
post will be on probation in that
post for a period of one year
Four factors are considered for
promoting an employee:
1) Seniority (25 marks)
2) Test/Interview(0 marks)
3) Attendance(20 mark)
4) Performance(15 marks)
Employee who secure less than
50% score of marks in tests and
interview are not considered for
promotion.
All vacancies in the post, in the
level of shift in charge
equivalent and below in the
pigment until shall be filled up
by promotion subject to
availability of suitable
workman. The workman shall
be eligible for promotion on
completion of four year of
minimum service in a particular
grade or post in Titanium unit.
50% of vacancies in the post of
Assistant engineer or guidelines
subject to availability employees
in concerned field of categories.
Actual promotion shall be
drawn up by the promotion
committee and he is empowered
or delegated with power to the
effect.
PERFORMANCE APPRAISAL
SYSTEM
When an employee is
transferred in promotion from a
post during the course of a
colander separation performance
report must be prepared for
period to such promotion or
transfer. The personnel appraisal
forms in respect of employees in
various section are being
separately sent Human Resource
development department to
respective head of the
department for getting the report
completed and forward the same
to the personnel manager with
remarks of assessing the
reviewing officers.
TRANSFER
There is only inter departmental
transfer in the company.
RETIREMENT OR
SUPERANNUATION
KMML being a Kerala
government undertaking
company, the retirement or
superannuation is fixed at the
age of 58.
REMUNERATION IN KMML
In KMML at present, time wage
system is adopted. Workers are
paid at hourly, daily and
monthly wages. Permanent
workmen who have completed
eight years of service are
allowed higher grade.
WAGE
Wages is carried out by the
Government wages and safety
revision will be made in every
five years.
There are four trade unions in
KMML
1) Titanium complex employees
union(RSP(B))
2) Titanium complex employees
congress (INTUC)
3) KMML Titanium employees
union(CITU)
4) KMML Employees
union(STU Muslim League)
The middle level officers of
KMML have two associations.
They are:
-KMML Officers Association
-KMML Officers Federation
WORKMEN
CLASSIFICATION:
1.Permanent Employees:
There are about 215 officers and
960 non technical staffs working
in the Tio2 pigment plant as
permanent employees.
2.Employees Engaged On
Contract Basis:
These employees work on
contract for a limited period of
time say one year or six months
on specific terms and condition
fixed by the company. They
have no preference for future
employment in the company.
3.Temporary or seasonal
worker:
These workers are employed
when the work load is more. On
certain season due to the
increase in demand, more work
forces are needed to meet the
production. In such cases
temporary workers are engaged.
The services of such employees
are dispensed with as and when
the need is satisfied.
4. Casual labour:
Casual labours are employed
from people who lost their land
due to acquisition by KMML;
they are engaged first as casual
workers and then absorbed as
permanent employee when
vacancy arises.
5. Apprenties:
Apprentices work for a period of
one year as part of their training
programmed as per
apprenticeship Act.
WORKING HOURS
The daily working of the
company is on shift basis. There
are three shifts for plant and
general shift for administration.
The timing is as follow:
-A Shift-6 am to 2 pm.
-B Shift-2 Pm to 10 pm.
-C Shift-10 Pm to 6 pm.
-General-9 am to 5 pm.
WAGE STRUCTURE
Basic wages for each category
of workers are fixed as per
agreement the management and
the workers representative. The
items covering under wages are
follows;
1) Basic pay
2) Dearness Allowance
3) Variable Dearness Allowance
The worker are given specified
amount as basic wage as per the
agreement. The agreement is
valid for four years.
WELFARE ACTIVITIES
1. Bonus:-
Employees who are drawing
more than Rs.3500/- per mount
are eligible for bonus almost all
the employees working here are
eligible for bonus irrespective or
casual worker.
2. Provident fund:-
Introduced in 1956 and
administered by a trust. Here
both the employer and the
employee have to continue 12%
each of the basic pay, where
eight and one third percent is
transferred to pension fund.
3. Gratuity:-
Minimum amount payment
payable as gratuity is Rs.3500
Employees having continues
service of the year are eligible
for gratuity.
4. Employees State Insurance:-
All the employees working here
come under Employees State
insurances Scheme.
LABOUR WELFARE
ACTIVITIES
The allowances provided by the
company for its employees are
as follow:
1. House pent Allowances:-
Workmen of the company shall
be entitled to house rent
allowance @ 10% of the basic
pay effective from 1. 1. 1997.
2. Conveyance Allowances:-
Up to Rs.100 is given as
conveyance allowance as per
Memorandum of Agreement.
3. Shift Allowances:-
Employees working A, B and C
shift are paid Rs 200 per month
as shift allowances.
4. Washing Allowances:-
Washing Allowance is Rs.40 per
month work for at lest five day
attendance is necessary.
5. Cash Handling Allowances:-
Rs.40 per month is paid as cash
handling allowance to
employees who look after the
duties of the cashier.
6. Milk Allowances:-
Working having 15 days of
attendance is eligible for milk
allowance amounting up to Rs.
75 per month.
7. Stitching Allowances:-
Employees are given the
stitching allowance as follows:-
• Uniform for gents –Rs.50
• Blouse and apron-Rs.30
• Over coat –Rs.75
8. Chlorine Tanker Duty
Allowances:-
Rs.40 per mount is paid as these
allowances.
9. Acting Allowances:-
Operators grade A,B and C is
paid Rs.20,Rs./ 15, Rs. 10
respectively are as paid as these
allowances.
10. Educational Allowances:-
Education allowances are
granted for up to two children.
Up to SSLC education
allowance of Rs.50/ month is
given to each child. Course,
which demand minimum
qualification of S.S.L.C other
than plus two Rs.70 per month
each, for degree courses Rs.80
per month each, and for
professional courses Rs.100 per
month each.
11. Attendance Bonus:-
Employees who attain
attendance of:
A) 80 to 90% are given a bonus
of Rs. 100/-
B) Greater than 90% are given a
bonus of Rs.110/-
C) 100% are given one wage
and DA

12. Housing Loan:-

For small works of residential
building such as extension are
repair works loans are given to
Rs. 1.5 lakes and a maximum
amount of Rs.3 lakes can be
given for construction of new
residential buildings.
13. Vehicle Loan:-
For two wheelers amount
Rs.40000 are given as vehicle
loan and for officer loan
amounts to Rs.1 lake.
The other benefits include:-
1) Retirement Benefits
2) Death Relief Fund
3) Medical Facility
4) Financial Aid to prolonged
Treatment
5) Subsidized Canteen facility
6) Interest Subsidy for Housing
Loan
7) Transportation Facility
8) Recreation club
PERSONNEL RECORD
KMML maintains a personnel
record for its employees. It is a
file consisting for all the details
regarding the employee and all
the data relevant to him
RECORDING OF THE
ATTENDENCE
The electronic punching system
is adopted in KMML. Every
employee had to punch the card
on entering the work.
TIME KEEPING AND TIME
BOOKING
A separate wing is concerned
with time keeping and time
booking in the company. With
the help of the punch card this
section keeps an attendance
register. Main function of this
section is attendance recording
of leave, late coming, early
going lost hours, overtime, shift
allowance, loosed wages due to
absence, wages due to work
holidays.
MATERIALS DEPARTMENT
MATERIALS DEPATMENT
All functions relating to
purchase and storage of
materials for the company is
carried out by this department.
This department is heated by the
Deputy General
Manager(materials).There is
around 27000 items of raw
materials in KMML. The
functions of material department
can be grouped in to three:-
Purchase
Storage
Inventory control
PURCHASE SECTION
Purchase can be broadly
classified as
• Purchase made in India, i.e.,
indigenous purchase
• Purchase made from foreign
countries
• Cash purchase, i.e. , up to
Rs2000/- with the permission of
unit head
• Local purchase. i.e.,up to Rs
25000/- this arises in the case of
emergencies and purchase can
be made from approved.
TERMS OF PAYMENT
1. Direct payment
2. Through bank
3. Advanced payment
4. Letter of credit
PURCHASE FUNCTIONS
Purchase of materials is an
important function of an
industry.
The procedure of purchase is as
follows:-
1. Purchase request:-
The department or officer in
need of material has to place his
request in a purchase requisition
form. In case of raw materials, it
is done by the inventory control
section. The purchase
requisition is prepared in the
triplicate. The original copy of it
is kept by storekeeper and the
other is send to the authorized
executive. The purchase request
must be approved by the
concerned department head.
2. Stock verification:-
On received the purchase
request the storekeeper checks
whether the materials required is
available though the store. If the
materials are out of stock, the
storekeeper informs the
purchase section through and
indents form.
3. Selection of suppliers:-
The next function is to select the
supplier to whom the order is to
be send. The company places a
public tender notice for the
procurement of raw materials
.On the basis of the vendor
submits the tenders. Tenders
have two parts:-
Technical bid and commercial
bid:-
The tender committee opens the
tender and verifies the technical
bid and if they are satisfied with
the technical bid i.e. , with the
quality of materials, they opens
the commercial bid, the tender
committee than prepares a
comparative statement and
accept the lowest price quoted
Quotation. Usually, a contract
for one year is made for the
supply of raw materials. To
avoid risk of the irregularities of
the supply , the company
appoints more than one
vendors . In case of spare parts
the enquiry is send to the vendor
for, the vendors list of company
and the apt vendor is selected on
the basis of tenders. The vendor
list contains the name and
address of vendors and with
specific items.
4. Purchase order :-
After deciding the supplier, the
purchase officer of KMML has
to place a purchase order. The
purchase order is written
authorization to the supplier to
supply the particular materials.
The materials are to be supplied
according to the terms and
conditions of the purchase order.
In KMML five copies of
purchase order is prepared.
The original is send to the
supplier.
Second copy is send to the
material receiving section
The third copy is send to the
person who has placed the
purchase requisition
The fourth copy is send to the
Finance department for future
reference for payment the last
copy is kept in the department
itself.
5. Inspection of goods and
quotation reception:-
On receiving the materials from
the vendor, a visual inspection is
conduced. If there is any
discrepancy between the party
advice copy and received copy,
a discrepancy is prepared and if
there is any damage report is
prepared.
Item below Rs.500/- call for
single quotation. Items above
Rs.500/- and below Rs50000/-
are call for minimum three
quotations from important
manufactures, dealers and
stockiest. Items above
Rs50000/- call open tenders.
Sanctioning Authority

Purchase order cost Authority

Below Rs.50,000
DGM(Maintenance)
5-10 Lakes GM(Technical)
Above 10 Lakes MD(Tender
committee)
Above 25 Lakes Board of
Director
Main Raw Materials and
suppliers are given below:-
Raw Materials Suppliers
HCL ,CI ,Caustic Soda Lye
Travancore Cochin Ltd
LPG BP
Furnace Oil Indian Oil
,BPC,HPC
Sulphuric Acid Binani Zink,
FACT
NPF Petroleum Coke
Meeankshi Chemicals
Aluminum Chloride Bismi
chemicals
Aluminum Tri Hydrate Indian
Aluminum Company
Succeenic Acid Sivam
Enterprises
KCl Samudra Chemicals
Tri Isopropanol Amine Dove
Chemicals
Trimet Geo Specialties, USA
STORE SECTION
Store section deal with:-
Receiving the materials
Inspection of materials
Storage and presentation
Proper classification and
codification of materials
Materials handling
Issue and dispatch
Stock records
Store accounting
Stock taking
STORAGE FUNCTION
Various documents are prepared
by the store section for the
proper functioning of the
department. The documents
maintained are as follow:-
1. Stores inwards book:-
On receiving any materials to
the store, it is entered in a
document called stores inward
book (SIB)
2. Inspection of good:-
On receiving any materials and
preparation of SIB inspection
request is send to the concerned
technical officer for technical
evaluation and prepared on this
basis.
3.Store received note:-
After the preparation of SIB and
inspection of goods or materials,
Store Received Note (SRN) is
prepared. This is the document
showing that the , materials
received is accepted and
payment can be made for it. The
SRN is sent to the Finance
department for payment. Four
copies of SRN are maintained in
KMML. Usually the company
gets a credit facility for 45 days.
4.Materials issue note:-
Any material is issued from the
store only after receiving a
material requisition or Material
Issue Note (MIN). MIN contains
all the details regarding the
material as well as the indenter.
5.Stock transfer note:-
For transfer of materials
between store or section or
contractors, for transfer of
materials between store and
section prepared, it contains
details such as material code,
cost center, material description,
Unit and quality. It should be
mentioned that material
description, unit and quality. It
should be mentioned that from
which section and to which
section is the transfer-taking
place.
6.Material return note:-
Some times materials issued
from the store may be returned.
In that case Material Return
Note (MRN) is prepared. It
contains details such as the
name of department from which
the material is returned, value,
quality, code, unit, present
balance and reason for return.
BINCARD
BINCARD is a document
attached to bin and it contains
the quantities details of the
materials received, issued and
closing balance. In addition to
this, it indicates information
regarding different stock levels
like minimum level, maximum
level, reorder level, etc coded
number and name of materials.
INVENTORY CONROL
SECTION
Proper inventory management is
necessary to provide and
maintain good customer service.
It enables smooth flow of goods
through the production process.
It is important as it provides
protection against the
uncertainties of demand and
supply and also performing the
various production operations
economically and
independently.
Materials purchased for month
is analyzed and an issue price is
fixed for the month. The
company follows weighted
average method.
INVENTORY CONTROL
TECHNIQUES
1. ABC Analysis
2.VSN Analysis
3. FSN Analysis
4. EOQ

MARKETING DEPARTMENT

ORGANISATION CHART OF
MARKETING DEPARTMENT
MARKETING DEPARTMENT
“Marketing is a social and
managerial process by which
individuals and groups obtain
what they need and want
through creating and exchanging
products and value with
others”--------- Philip Kotler.
ABOUT KMML MARKETING
KMML have monopolistic in
Titanium Dioxide (TiO2)
pigment industry. KMML is a
public limited company that
stands as a leader in production
of TiO2.
The company has a large
number of customers from all
over the world and out side. The
marketing department is
engaged in selling of the
company’s product. There is no
separate department for sales
and marketing management also
perform these functions. The
marketing section keeps detailed
report about customers’ product,
product group control, dispatch
and payment.
Products of KMML always
maintain very high standard
perfection, achieving technical
excellence in every phase of
production to offer a wide range
of products for quality
conscious customers.
At KMML, one factor comes
before everything else is
customers and KMML go out of
their way to ensure customers
satisfaction. A team of
motivated marketing experts,
who make it their business to
find out the firm’s views,
highlights customer’s
consciousness. Maintaining
close contacts, they are perfectly
aware of customer’s needs and
are instrumental in development
of new products at price and
offering.
MARKETING MIX
PRODUCT
The major products of KMML
is Titanium Dioxide TiO2
(Rutile) pigment, which is
extensively, used as the main
raw material by several
industries such as paint, plastic,
rubber, printing, inks etc.
PRODUCT PROFILE
Titanium Tetra Chloride
(synonym-Tickle) is produced
as an intermediary product in
the production of rutile grade
titanium dioxide pigment.
Titanium Tetra Chloride is
extensively used in the
manufacture of Titanium
dioxide pigment, Titanium
sponge or metal.
At present KMML produce six
grades of Titanium Dioxide and
they are:-

1) Kemox RC 800:- It is
recommended for printing inks,
high gloss coating, industrial
coating, low abrasivity pigment
for letterpress gravure
polyamides and exterior
application where maximum
chalk resistance is not required.
2) Kemox RC-800 PG:- It finds
application in plastic requiring a
blue white high dispersion
TiO2. Other areas of application
are powder coating,
polyethylene films and vinyl
sheet goods. It is used in most
other common plastic or rubber
floor like applications.
3) Kemox Rc-822:- It is
recommended for interior and
exterior enamels and lacquers
for industrial and architectural
purpose.
4) Kemox RC – 813:- It can be
used in both interior and exterior
low gloss and flat paints and
coating- both solvent and water
based. It finds application in
interior flat wall paints, exterior
low gloss or flat house paints,
low gloss maintenance pints,
low gloss or flat chemical
coating etc. Kemox RC-813 can
be described as a universal
pigment for all coatings
formulated at higher percentage
pigment volume concentrations.
5) Kemox RC-802:- It is
recommended for both interior
and exterior applications. This is
also recommended for
architectural and industrial
paints-both solvent and water
based.
6) Kemox RC-808:- It is
recommended for automotive,
industrial and architectural
finishes. It is also recommended
for coil coating, radiation cured
finishes; emulsion paint systems
powder coating, water borne
coating and printing inks. It can
also be used for letterpress
gravure, polyamides and other
inks where low abrasive
pigments are required.
PRICE
Based on the variation in the
market, the price of TiO2 is
fixed by KMML. The price is
fixes by Chairman and Finance
Secretary of the Government of
Kerala. The price is periodically
revised due to market
fluctuation.
Selling price of all grades of
TiO2 (Rutile Grade Pigment)
= Rs. 110000 + 16% Excise
duty + 4 % CST
PROMOTION
KMML is a sole manufacture of
rutile grade titanium in India.
Hence there is no much
competition in the world market.
Advertisement promotes the
company product.
ADVERTISEMENT
Advertisement are given in trade
journals, industrial news,
magazine used by paying
manufactures association, ink
producer association etc.
Advertisements are also given in
newspapers while appointing
stockiest.
KMML subscribes “Paint India”
the leading publication of the
paint industry and also “Mineral
Market Reporter” which
provides valuable information
about TiO2 at national and
international level. The
company also provides discount
scheme for its customers.
PLACE OF DISTRIBUTION
Marketing channel decisions are
among the most important
decision that management faces.
A company’s channel decision
directly effects every other
marketing decision. The firm’s
sales force and advertising
decision depends on how much
persuasion, training and
motivation the dealer need.
DISTRIBUTION SYSTEM
In KMML distribution is
divided into two major
categories:-
1) Direct Supply:- Direct Supply
to the actual customers who
require seven metric tones or
more at a time. By this policy
KMML, have estimated the
middlemen and it is easily
adapted to any circumstances.
2) Supply through Stockiest:-
Supplies to small sectors are
done through stockiest
appointed by the company in all
major cities. Company fixes
prices for its products and the
stockiest are responsible to see
the pelts at fixed price.
All the grades of TiO2 pigment
produced in KMML come under
the category of industrial goods;
TiO2 is mainly used in paint
industry, textile industry,
printing ink industry etc. The
total customers can be divided
in to three types:-
Major Customers
Stockiest
Other Customers
CUSTOMERS
Paint industry contribute large
customers of TiO2, other largest
customers include such
industrial as paper, plastic,
polymester. The bulk of the
products in KMML are
consumed by industrial namely:-
Asian Paints
Hindustan Latex and Revin
Shalimar Paint
Corlass Nerolac
Jenson and Nicholson
Sanderson Chemicals
Mega Meditex
Camlin
Plastic Chemix Industries
Berger Paints
Rajdoot Paints
SALES PROCEDURE
The sales section obtains the
order from the customer,
receives the pigment in the form
of cheque or DD, dispatches the
quantity and send invoice to
Financial Department.
MAJOR COMPETITORS
The company has a
monopolistic nature in TiO2
pigment industry in India. The
company has some competitors
in the world market.
The main competitors in the
world market are:-

- Dupont (USA)
- Ishihara (Japan)
- Hoitex (USA)
- Millennium (Germany)
- Henduk (Seoul, Korea)
- Flectha Titanium Products
(New Zealand)
- Tofins (Netherlands)
EXPORT MARKET IN KMML
Even through KMML faces stiff
competitors from multinational
giants, KMML receives a
number of export orders through
e-mail, fax and through
correspondence from customers
abroad. KMML enjoys good
reputation for quality pigment in
the international market. The
company is exporting its
products in Korea, South Africa,
Sri Lanka, Turkey, Dubai,
China, Mauritius, UK and
Philippine. The company is now
exporting 20% of their
production. It has plans to raise
this to 50% by 2005.
MARKETING
INFORMATION SYSTEM
KMML is a member of
chemical and allied products
export council. Bulletins of
chemical are regularly received
by KMML and used to obtain
the latest trend of Titanium
Dioxide demand for various
customers both indigenous
foreign.
KMML subscribes “Paint India”
the leading publication of paint
industry and also “Mineral
Marketing Reporter” which
provides valuable information
about TiO2 at national and
international level.
KMML uses the services
rendered by “India Marketing
Bureau” which is a marketing
research as advised by KMML.
For this KMML has to pay fees
annually for their research
studies.
HANDLING CUSTOMER
COMPLIANTS
The complaints received from
the customers are registered by
KMML, and acknowledgment
sent to customers. The details of
the complaints are entered in the
customer complaints register.
The particular about the
progress of investigation and
nature of disposition are updated
in the customer care register.
MARKETING FUNCTIONS
OF KMML
FUNCTIONS OF EXCHANGE
1) Buying and Assembling:-
The extraction of raw materials
of producing finished titanium
dioxide is done at Chavara
where the factory is situated.
Only certain quantities of
chemical and other raw
materials is purchased from
other units for the production of
titanium dioxide. Assembling of
titanium dioxide is done at the
factory godown.
2) Packing:- Titanium dioxide is
packed in 25Kg net weight in
laminated multi wall paper bags.
After the chemical process is
over, the materials is
micronized, the pigment is
collected in bagging. The
material is taken to a conveyor,
here two peoples are engaged in
bagging and four are in
stocking. It is then taken and
stored in pigment godown. 50
bags are packed in one pallet
weighting 1.25mt.
3) Selling:- KMML sells
titanium dioxide directly to its
consumers and its stockiest in
bulk. The stockiest are
appointed by fulfilling certain
rules and regulation of the
company.
Functions of physical supply
• Despatching: - After the order
from stockiest and consumers,
have been received, the
marketing department arranges
the execution of orders by way
of dispatch. The mode of
payment must be in the form of
Demand Draft payable at any
scheduled bank at Kollam.
DOCUMENTS AND
REGISTERS TO BE
PREPARED FOR
DESPATCHING THE GOODS

a) Order Register:- Particulars

of order received is entered in a
registered called order register.
It shows the date, name of the
party, grading of the products,
payment of cash and transport
mode.
b) Delivery note:- This note is
prepared before the goods are
dispatched. It has the KGST
Rules 1963.
c) Delivery Chellan:- It is
another important document
which is prepared by the
dispatch section. It contains the
details of goods, which are
dispatched, name of carrier,
L.R.No, excise, gate pass note
and date of dispatch.
d) Invoice:- Invoice is prepared
at finance department and
submitted to the marketing
department. It shows the name
of the customer; date, grades of
goods, quantity purchase, price,
destination, truck no etc.
e) Gate Pass:- It is prepared by
the dispatch section. The
company gate pass is submitted
before the security officer to
take goods out of the factory
premises.
f) Transportation and
Insurance:- Transportation and
insurance ar eto be arranged by
the customer. The customer
shall nominate their approved
transporter.
DECLARATION UNDER
KGST RULES 1963 FORM
27B
This is another document, which
has to be filed up and made
ready before dispatching the
goods. The form is addressed to
the officer in charge of check
post and it must be signed.
MARKETING
FACILITATING FUNCTION

1) Financing:- For carrying out

marketing functions, KMML
does not require financial
assistance in form at loans. The
customers will have to make
payment in advance.
Year Production in m/ton Sales
in m/ton
1996-97 18042.000 16150.475
1997-98 15377.775 18011.500
1998-99 10115.650 6050.450
1999-2000 14486.550
14707.550
2000-01 19317.000 21526.850
2001-02 21816.000 23501.000
2002-03 23521.01 25230.000
2003-04 24251.610 25851.000
2004-05
2005-06
2006-07
2) Risk Bearing:- Marketing of
titanium dioxide pigment
involves a number of risks.
Returning the goods by
customer or damages at the time
at storing in the factory go down
covers the risk factor. All the
above risks are reduced to a
great extend with the help of
insurance.
PRODUCTION AND SALES
The commercial production
started in 1985. Following chart
will show the
production and sales of titanium
dioxide in past 10 years.
MARKET RESERCH
ACTIVITIES OF KMML
MAIN OBJECTIVES
1) To find out the general
impression of KMML products
in the titanium dioxide
marketing of India.
3) To ascertain whether demand
exists in the Indian market. If
we under take the proposed
expansion of 6000 million
tonnes.
4) Equivalent grade needed in
market.
New product development
A new hydrophobic plastic
grade pigment RC804 was
developed by the effort of in
house R and D of our company.
The trial production of the same,
approximately 100 times was
taken successfully. The sample
has been tested at CIPET
Hyderabad and found to be
comparable to competitive
international grade pigment.Free
samples were given to
customers for their evaluation
after which bulk orders were
received and the entire material
could be sold out.
FINANCIAL DEPARTMENT
ORGANIZATIONAL CHART
OF FINANCEDEPARTMENT
FINANCE DEPARTMENT
Finance is the lifeblood of every
business. This is one of the most
important departments. In
KMML a well organized
finance department is
functioning. The finance
position of the company can be
understood by Balance Sheet
and Profit and Loss Account,
prepared budget report
according to the company’s
goal’s is also an important
function of the finance
department.
Accounting Policy of KMML
1) Convention
The final statement are prepared
under the historical cost
convention in accordance with
applicable accounting standard
that was relevant to
presentational requirement of
the Companies Act 1956.
2) Fixed Assets
Fixed assets are stated at cost of
acquisition and additional if any,
less accumulated depreciation,
is provided at rates and methods
prescribed in the schedule XIV
of the Companies Act on
straight line method in respect
of plant and machinery and
railway sliding belonging to
TiO2 pigment unit. And written
down value method in respect of
all the asset of the company.
The depreciation is calculated
on the basis of Companies Act
and for income tax audit it is
added to the profit and
recalculated as per the audit
rules.
3) Excise duty
Excise duty on manufactured is
accounted for as and when
goods. Are dispatched is
accordingly no provisions is
made in respect of duty due on
goods manufactured, but not
dispatched nor included in
valuation of stock.
4) Gratuity
Gratuity liability and leave is
accounted on the basis of
actuarial valuation.
5) Inventory System
Work-in-progress is valued at
the cost and stock of raw
materials, chemicals, fuel and
stores are valued at weighted
average cost on mont
ADJUSTMENT PER
TRAINING TO EARLY
YEARS
Adjustment arising out of errors
or omission in the financial
statement of earlier years are
prior period item, if the amount
involves is Rs.100000/- or more
in each case.
FUNCTIONS OF
ACCOUNTING SECTION OR
FINANCE DEPARTMENT
The company maintains a clear
and perfect accounting system.
The main activity of the Finance
Department is Working Capital
Management. Preparation of
Fund statement, cash Flow
Statement, Balance Sheet. Profit
and Loss Account etc are also
he activities of Financial
Department. Secretarial work
relating to Board comes under
the review of the Finance
Department. Most of the
activities carried out by the
Finance Department are
pertaining to long term and short
term requirements of the
operation, closing purchase bill,
maintaining the account of
contractors, subcontractors,
income tax deduction, salary
discrepancy, dealing with the
financial institutions with
imports and exports are also the
functions of the Financial
Department.
The Functions are:-
1) Purchase Are Recorded And
Analyzed
The Finance Department of the
company keeps the accounts of
purchase of spare parts,
chemicals etc and accounting
entries are made in the books of
accounts of the company on day
to day basis, on the basis of bills
and supporting vouchers of each
item. Each voucher is essentially
numbered to avoid discrepancy.
The company makes only
miscellaneous purchase, as the
main raw material is mineral
sand. The department analyses
the details of purchases
afterwards.
2) Salary Section And Pay
Division
The main function of the
department is preparation and
disbursement of salary of
officers, members of office staff
and workers. The department
keeps salary register pertaining
to each of the above sections,
which facilitates charges in
salary due to granting of annual
increments and deduction due
from the salary. The disbursing
of salary is crediting the amount
to the respective bank account
of the employee. The
department is sending a detailed
list of salaries; they have
arranged an ATM counter of
ICICI Bank in the company
compound. Certain employees
are paid by cheque. The
department is maintaining sub
ledgers for deductions made in
the salary such as PF, Insurance
Premium Advance, Income Tax
etc. Another important function
is computation of income Tax.
Its deductions and prompt
remittance to IT Department.
3) Sales and Revenue
Accounting
The department is calculating
and paying sales tax and central
excise duty to the concerned
Government every year. The
Government is earning a total
income of Rs.44 crores and
Rs.14 crores by way of excise
duty and sales tax duty from the
company.
4) Cash and Bank Transactions
The department does all the
matters relating to the day-to-
day cash transactions. They
receive and make payment for
purchase and sales. The
company is allowed to collect
cash up to the limit of
Rs.20000/- is carried out by
cheque or DD as per direction of
the Tax Authority.
5) Major Banks of the Company
ICICI, SBI, SBT, Standard
Chartered Bank, Canara Bank,
Central Bank of India.
6) Costing
Annual budget and cost sheet is
prepared at the outset of every
year and on the basis of the
department fixes the floor price
of each product of the company.
7) Calculation of Depreciation
The department calculates the
depreciation. Depreciation is
provided on straight-line method
in the case of plant and
machinery of Titanium Pigment
Unit and written down value
method in case of other assets of
the company.
AUDITING
Auditors are appointed by the
Government for a period of one
Year. There exist an external
audit and internal audit.
Internal Audit:- These are part
of the organization. There is an
internal auditing sector. They
are in the charge of periodical
audit.
External Audit:-
They are as follows:-
- Statutory Audit
- Account General’s Audit
- Inspection Audit
- Sales Tax Audit
- Income Tax Audit
- Cost Audit
-
The company has registered yet
another excellent result during
the year ending 31 March 2003.
Production of the company for
the year 2000-2005 is given
below.
Production Year TiO2 Pigment
Minerals (llmenite)
2000-01 22815 10823
2001-02 25426 11647
2002-03 25612 17945
2003-04 25921 19138
2004-05 26859 21555

During the year 2002-2003

Company has achieved a record
production of 25612 MT as
against 25426 achieved during
the previous year. Similarly, the
production in the MS unit has
also increased from 10823 MT
to 17945 MT. This is mainly
because of adding two more
magnetic separators in the old
plant. Modernization of MS
plant o\is nearing completion
and when the same is completed
anticipated production would be
45000 to 50000 MT per annum
FINANCIAL RESULTS
Financial results of your
company for the year under
review and previous year are
given below.
Particulars 2006-2007
(Rs. In lakhs) 2005-2006
(Rs. In lakhs)
Total gross turn over 32854.54
32304.14
Gross profit before interest and
depreciation
3079.60
2594.06
Profit before tax 2243.24
1782.05
Profit after tax and prior period
adjustment
1121.07
1115.27
Transfer to general reserve
92.79 0.00
Capital employed 43851.73
43075.03
Internal generation 1885.43
1601.24

PROFIT AND LOSS

ACCOUNT FOR THE YEAR
ENDED 31ST MARCH 2007
Particular As per
Schedule 2006-2007
(Rs. In lakhs) 2005-06
(Rs in Lakh)
Income
Gross sales
Less:Excise Duty
Net Sales
Other Income
Stock Differential
O
P
32854.54
3280.05
29574.49
1776.80
2959.55
32304.14
3337.07
28967.07
1483.14
1008.46
Total 34311.02 31458.67
EXPENDITURE
Manufacturing Expenses
ayments and Benefits
Employees
Administrative selling and
Other Expenses
Interest and Finance Charges
Depreciation
rofit Before Tax
Less: Prior Period items
Doubtful advances
Profit after Prior Period
Adjustment
Less: Provision for Current
Taxation
Less: Provision for
Deferred Tax
Less: Provision for FBT
Less: Prior year adjustments
relating to Income tax
rofit for the year
rofit & Loss account Balance
Brought Forward
Amount available for
appropriations
roposed Dividend
Tax on Dividend
Transfer to Reserves
Surplus Transferred to Balance
Sheet
Earnings Per Share
(Basic and Diluted)
Refer Note 27 0f Schedule T
K
L
M
N
R
Q
S
23859.88
6783.54
583.00
72.00
764.36
2243.24
7.67
158.50
2077.07
900.00
116.08
56.00
0.00
1237.15
23662.66
24899.81
309.33
52.57
92.79
24445.12
39.99

22085.60
6165.78
613.23
73.38
738.63
1782.05
8.78
0.00
1773.27

625.00

0.18
33.00
252.48
862.61
22800.05
23662.66
0.00
0.00
0.00
23662.66
27.89
Significant Accounting Policy
Notes forming Part of Accounts
U
T

BALANCE SHEET AS AT 31
ST MARCH 2007
Particulars As per Schedule
2006-2007 (Rs. In lakhs 2005-
2006 (Rs. In lakhs)
SOURCES OF FUNDS
Share holders funds
Share Capital
Reserves & Surplus
Deferred Tax Liability
A
B
C

3093.27
40575.71
182.75
3093.27
39700.46
298.83
Total 43851.73 43092.56
Application of Funds
Fixed assets
Capital work in progress
Investments
Current assets
Loans and Advances
Less : Current Liabilities
Less : Provisions
Net Current Assets
Miscellaneous expenditure
(To the extent not written off or
adjusted)
Significant Accounting Policy
Notes forming Part of Accounts
R
F
G
H
I
D
E
J
U
T
22531.31
18968.74
41500.05
5895.47
12554.58
18450.05
11746.84
9037.29
17.60
23050
0.00
27130.94
18975.96
46106.90
6577.63
11775.42
18353.05
10157.90
5163.18
0.10
27753.85
17.53
TOTAL 43851.73 43092.56
WORKING CAPITAL
Year Current Year Loans and
advance Current liability
Provision Working capital
2004-05 29187.84 23718.91
4183.87 16521.69 32201.19
2005-06 27130.94 18975.96
6577.63 11775.42 27753.85
2006-07 22531.31 2004-05
29187.84 12554.58 23050.00
Working capital refers to that
part of the firm’s capital which
is required for financing short
term or current asset such as
cash, marketable securities,
debtors and inventories. It is a
measure of both a company’s
efficiency and its short term
financial health. If the working
capital is positive it means the
company is able to pay off its
short term liabilities. If it is
negative company is unable to
meet its short term liabilities
with its current assets. If a
company’s current asset do not
exceed its liabilities then it may
run into trouble paying back
creditors in the short term. So if
a company working in the most
efficient manner (slow
collection) it will show up as an
increase in the working capital

PRODUCTION
DEPARTMENT
ORGANISATION CHART OF
PRODUCTION
DEPARTMENT
PRODUCTION
DEPARTMENT
KMML always maintain high
standard of perfection by
achieving technical excellence
in every phase of production.
Catering to strict guideline,
KMML offers a wide range of
products for quality conscious
customers. Their products go in
to the manufacture of variety of
products used in every day life.
Paint material, facial creams,
tablets, newsprint, rubber
products, cosmetics and printing
inks all contain TiO2.
This department undertakes
activities and decision regarding
the production work. Deputy
General Manager (production
and maintenance) controls the
activities of the department.
Production of TiO2 is carried
out in lot wise with specific lot
number. Each lot contain 15 MT
of TiO2, samples are collected
from production at specific
intervals and examined
thoroughly in the laboratory or
the company. If any defect is
identified, then the lot is
considered as inferior quality.
Mineral separation plant (MS
unit) and TiO2 pigment plant
(TP unit) is two independent
production units in KMML. The
TP unit is divided in to three
plants.
• Illmenite Beneficiation Plant
• Acid Regeneration Plant
• Pigment
MINERAL SEPERATION
PLANT
The MS plant was originally
established in 1932 in the
private sector. Several
machineries were added in the
course of time. This plant
situated by the side of the open
mines, does the separation of the
minerals from the beach sand.
The raw sand is first
concentrated in spiral separation
to enrich the heavy mineral
content. The wet concentrate is
then dried in fluidized bed drier
and then fed to the dry
separation plant. Magnetic
separation and HT separation
separate different minerals. The
plant also separates Rutile and
Zircon from the sand.
TITANIUM DIOXIDE
PIGMENT PLANT
TiO2 Pigment manufacturing
process of KMML based on
chloride route, the process
consist of following steps.
Reduction and leaching of raw
illmenite of 90-92% TiO2
(illmenite Beneficiation)
Regeneration of spent
Hydrochloride acid for
minimum pollution.
Conversion of beneficiated
illmenite to TiO2 pigment
ILLMENITE
BENEFICIATION PLANT
Here the raw illmenite
containing 58-60% TiO2 is
beneficiated to 90% TiO2
content. The beneficiated
illmenite is the raw material for
the pigment production plant.
The ferric oxide in the raw
illmenite is subjected to high
temperate of 8500c. The
reduced illmenite then cooked
and sent to digesters where it is
leached with 18-20%
Hydrochloric acid. The spent
leach liquor is sent to storage
tanks. The leached illmenite
after washing and filtering is
calcined to get beneficiated
illmenite.
ACID REGENERATION
PLANT
The spend leach liquor from the
pre concentrator is processed in
to the spray roaster in which the
liquid spray entering the furnace
is heated by the burning oil. The
spend liquor then decomposes to
metallic oxides and hydrochloric
acid. The hydrochloric acid
vapor is first cooled in pre
concentrator and then absorbed
in the wash liquor generated in
the IBP to get 18% HCI which
is recycled back to IBP. The
unobservable gases are scribbled
with water before venting to the
atmosphere. The metal oxide
consisting of mainly iron oxide
are slurred with water and
routed to the slurry panel.

PIGMENT PRODUCTION
PLANT
The pigment production plant
has three units:
1. Chlorination plant
2. Oxidation plant
3. Surface Treatment and
Pigment Finishing Plant
CHLORINATION PLANT
This unit beneficiated illmenite
from chlorinated as reducing
atmosphere to produce Titanium
Tetra Chloride (TiCl4). Chloride
reacts with Titanium Chloride
and other metallic oxides.
Beneficiated in the illmenite in
the pressure petroleum coke at a
temperature of 800-900c in
fluidized bed chlorination to
produce chlorides are condensed
and purified to obtain pure
TiCl4 liquid, which is stored in
the storage vessel.

OXIDATION UNIT
In this unit raw pigment grade
TiO2 is produced by reacting
pure TiCl4 and oxygen with at a
temperature of about 1000c in a
reactor after preheating the
TiCl4 in a pure heater having
suspended in code tubes to carry
the Titanium Chloride vapor.
TiO2 raw pigment obtained for
this unit is scurried with water
pumped storage tanks for further
processing in the pigment-
finishing unit the chlorine is
liberated back to the
chlorination unit.
Oxygen and chlorine are
required for oxidation and
chlorination.
PIGMENT FINISHING UNIT
The unit-dispersed slurry from
oxidation unit is passed through
the different subsections of the
unit via, sound milling and
classification treatment
filtration, drying, micronisation,
scrubbing, cooling and bagging.
In the treatment section
chemicals are added. Give a
coating to the pigment is
reduced to two microns to be
micronisation treatment. The hot
micronised pigment is cooled
and pneumatically conveyed to
the final storage bin, this
product is then bagged in paper
bags of 25 kg each stacked on
woolen pallets (40 bags/pallets)
and dispatched.
AIR SEPERATION PLANT
This unit has been designated by
M/s Lair Linde, France and
supplied through M/s BHPV Ltd
Visakapattanam. The Oxygen
and Nitrogen are required for
the process in the Oxidation and
chlorination unit. This plant has
a capacity to produce the
following.
1 Gaseous N2 – 1500 Nm/hr (50
MTD) 99.8% purity
2 Gaseous N2 – 1800 Nm/hr (50
MTD) 99.5% purity
3 Liquid O2 – 37.5Nm/hr (2.5
MTD) 99.5% purity
4 Liquid N2 – 45Nm/hr (2.5
MTD) 99.5% purity
IRON OXIDE BRICKS PLANT
An iron oxide brick is a building
material produced KMML. The
materials used for the
production of iron oxide bricks
are:-
1. Iron oxide
2. Lime
3. Cement
4. River sand
5. Sodium silicate
The company has been facing a
problem in the waste disposal
areas. This problem is mainly
connected with the disposal of
iron oxide slurry, which has
been coming outside from acid
regeneration unit as a waste. In
order to dispose the iron oxide
powder the company started to
produce the iron oxide bricks in
the plant. At present the
company is using this product
for its domestic purpose such as
constructing compound wall,
floor etc.

BASIC PROCESSING STEPS

Beach sand
Mineral separation unit

Illmenite Rutile Leucoxene

Zircon Sillimenite Monazite
60% TiO2 95% TiO2 75% TiO2
65% TiO2 65% TiO2 57% TiO2
TiO2 Pigment Unit

Illmenite beneficiation spent

acid Acid Regeneration
Plant (IBP) Plant (ARP)

Synthetic Rutile Hydrochloric

acid Iron Oxide
Chlorinator Brick making place
Titanium Tetra Sales TiO2
Building Bricks
Chloride 99.5%
Oxidation Plant Oxygen Air
separation unit
Raw TiO2 Pigment Grade
KEMOX RC 800

Reference: http://www.seminarprojects.com/Thread-organisational-study-at-kerala-minerals-
and-metals-ltd-full-report#ixzz0yerWfg3L