Professional Documents
Culture Documents
Chapter 1 INTRODUCTION
1.3 METHODOLOGY
It is an overall operational framework, which help to collect the required data through primary and secondary means with in the period of one and half month.
PRIMARY METHOD
This is the method by which we collect data directly from the organisation. This is of two types i.e., observation method and interview method. In observation method we observe the work done in the organisation and collect data from that, while in interview method it is the verbal conversation with the workers in the organisation and collecting data directly from them. From this we get different views and ideas of different people. The data collected will be very accurate.
SECONDARY METHOD
This is a method by which we collect data that is already being collected by someone else. And which have already being through statistical methods. This study also used secondary data from websites, magazines etc. This type of data may not be so accurate because it is not collected by us directly. So collecting data through secondary method should be very careful. But this is much easier method than primary data collection.
1.4
To understand the organization and study its various functions and ups and downs a period of 45 days is not enough. TCC is large chemical company; as such accurate data regarding the internal affairs of the company are not easily available. As there were three different shifts, seeing the workers together for a public interview or an opinion session was not possible. Confidential data could not be obtained. The interpretation and analysis may not be accurate because of the limited experience of the researcher.
2 INDUSTRY PROFILE
The world economy is developing. This development is accompanied by the development of various industries as well. A wide variety of products are coming into the market. These products require many chemicals in the course of it production. Apart from the production process, chemicals also form a major constituent of the product. Hence many chemical industries producing a wide range of chemicals have come up. A chemical industry can be defined as a company that produces industrial chemicals. This industry utilizes chemical processes such as chemical reactions and refining methods to convert raw materialssuch as oil, natural gas, air, water, metals, and mineralsinto more than 70,000 different products. Salt is one of the oldest and most popular condiments. What is relatively unknown, is that salt is also the raw material for one of the most potentially profitable chemical industries in the country-Chlor alkali. The chlor alkali industry in India is around 60 years old. It began with a modest capacity of a few thousand tonessper annum. In the process of manufacturing chlor alkali some bye products are assured. For each tones of caustic soda, 860 kg of chlorine and 25 kg of hydrogen will be produced. Some amount of chlor produced is combined with hydrogen to make hydrochloric acid. Caustic soda, hydrochloric acid and chlorine are the basic chemicals and are used by almost all industries. Chemical Industry is highly heterogeneous with following sectors like petrochemicals, inorganic chemicals, organic chemicals, bulk drugs, agrochemicals, paints and dyes and foreign trade.
Membrane, 56%
Diaphragm, 29%
Mercury, 15%
// www.unep.org/ Overview of the Government-Industry Chlor Alkali Partnership In the international scenario, the increase in population has lead to increase in consumption and hence, increase in production. There has been increase in the production of paper, aluminum, soaps and detergents. All this has caused a rise in demand for caustic soda. Global warming is on its rise over the past couple of decades. The Green Peace Movement was seeking the phase out of chlorine usage, especially the CFC (chlorofluorocarbon) compounds. This has resulted in the closing down of many chlorine producing plans in Europe and restricted the production in North American plants, with a drop in its production. But the price of caustic soda has been rising in the world market. The caustic soda was being sold at $50 per tones. But now it has gone up to $300 per ton. The international market has been operating in the context of demand and supply. Situations of shortage and surplus are cyclic as a result of which international price is common. Currently, the total installed capacity of caustic soda in the world is around 78m tones/year, while demand is only 61m tones/year. Global caustic soda capacity is expected to increase by around 5.2m tones/year in 2011, with a bulk of it (3.8m tones/year) coming on stream in northeast Asia. Inorganic chemicals and pulp and paper constitute 14% each of the global caustic soda end-user market, while organic chemicals account for 12% and alumina accounts for 11%. 1 Northeast Asia has become the major exporting region of caustic soda in the world, with Australia and Latin America the major importing destinations. Chlorine production is one of the largest sectors within the global chemical industry. According to the American Chemistry Council, some 50 million tones is produced worldwide on an annual basis (mostly through the electrolysis of sodium chloride brine solutions to form chlorine gas).Major manufacturers include Dow Chemical, Olin Corporation, Occidental Chemical and PPG Industries. The vast majority is used to make plastics and chemicals for the agricultural and manufacturing sectors, but about 5%, or 2.5 million tones a year, is used for water treatment. At an average price of $550/tonne, that amounts to almost $1.4 billion in yearly spend.
MAJOR COUNTRIES PRODUCING CAUSTIC SODA USA Russia India Canada France China Germany Japan
Membrane, 93%
Mercury, 7%
Only 7% of Indian Chlor Alkali Capacity is based on Mercury Cell, which will be phased out by 2012, as per CREP Voluntary Commitment. Technology Share in India has a Total Capacity: 3.2 million MTPA. India was a net importer of chemicals in early 1990s, but has now become a net exporter due to implementation of many large scale petrochemical plants like Reliance, ONGC etc. and also because of tremendous growth of exports in sectors like bulk drugs and pharmacy, pesticides, dyes and intermediates. Major South Indian Chlor-Alkali Units Chemplast, Tamil Nadu DCW, Tamil Nadu BILT, Karnataka Chemfab Alkalies Ltd., Pondicherry Southern Petro Chemical Industries Corp. Ltd, Chennai Kothari Petro Chemicals Ltd, Chennai
In view of the high transportation cost and hazardous nature of chemicals transported, the caustic soda industry in the state is more localized and the consuming units have come nearer to the manufacturing unit. Also because of the high transportation cost, it is not possible to export caustic soda in large volume from the state. TCC is running on the latest technology
INTRODUCTION
The Travancore Cochin Chemicals Ltd, popularly known as TCC Ltd, is a state owned public sector undertaking by the Government of Kerala. TCC is situated at Udyogamandal, Cochin. Incorporated in 1951, TCC is the oldest chlor-alkali unit in the country and also is the only chlor- alkali unit in the state of Kerala. The caustic soda was produced initially using mercury cell technology. TCC was also the first company in India to install the mercury cell plant for the manufacture of caustic soda. TCC is a chemical industry and manufactures products like caustic soda, chlorine, hydrochloric acid, soda bleach and related chemicals. With continuous efforts for up gradation of technology and professional management the company has a good track record of operation and healthy industrial relations. TCC is also an ISO 9001: 2000 certified company. The company supports a large number of industrial units by supplying basic chemicals. TCC is conscious about its social responsibility and is dedicated to maintain the quality of products.
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Travancore Cochin Chemicals is the first unit in India to produce Rayon grade Caustic soda. The company has implemented a number of technical renovations to improve productivity of the plant.
PRESENT SITUATION
TCC is the only chlor alkali unit in Kerala. In India, there are about 40 chloralkali units as the companys competitors. Now TCC owes 109 acres of land and around 700 people are working in three shifts. Plants are functioning by using full capacity. Plants function on a 24x7 basis. The company has helped in attracting new industries to Kerala. These industries include Indian Rare Earth Ltd, Hindustan Insecticides Ltd, Hindustan News Print Ltd, Kerala Minerals and Metals Ltd etc. These industries are dependent on TCC for the supply of the basic chemicals. At present the company having the installed capacity of 175 TPD of caustic soda. 125 TPD from M/s ASAHI GLASS COMPNAY, Japan, commissioned in 1997. 25 tons per day bipolar membrane cell caustic soda plant supplied by M/s UHDE Germany was commissioned in July 2005 and another 25 TPD membrane cell plant from UHDE, Germany was commissioned in August 2006. The registered office and the factory of the company is situated at Eloor, Udyogamandal -683501, Ernakulam Dist, Kerala. Company has obtained ISO certification 9001-2001 in the year 2006. The company is working towards ISO 14000 standards currently.
SHARE(percentage) 80 17 2 1 100
INFRASTRUCTURE
The company is conveniently situated at Udyogamandal, industrial area, Kerala. It is situated on the banks of Periyar River and hence has abundant supply of water. Out of the 109 acres of land on which TCC is situated, 20 acres are leased out to M/s BSES Kerala Power Ltd. TCC receives lease rent on this. In addition to the plant and buildings, it has a full fledge housing colony for the accommodation of its employees. The company also has a water treatment plant from Periyar River. This water treatment plant has a capacity of 5mgd. For electricity supply, TCC also has a 110 KV electricity substation.
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CORPORATE OBJECTIVES
1. To produce and market chemicals such as caustic soda, liquid chlorine, hydrochloric acid carefully and in environmentally sound manner. 2. To make maximum profit from projects taken up. 3. To continuously upgrade the quality of Human Resource of the company and promote organizational development 4. To continuously improve the plant and operational safety and abide by the statutory pollution control standards 5. To ensure corporate growth by expansion and diversification. 6. To care the environment around. 7. To maintain optimum level of efficiency and productivity and optimum level of investment.
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ENERGY POLICY
Travancore-Cochin Chemicals is always committed towards the conservation of energy by all possible means. They strive for:
Technological up gradation to reduce specific energy consumption Conducting energy conservation studies including energy audit and adopting the apt measures for conserving energy
Using renewable energy sources to the extent possible Disseminating knowledge and information on energy conservation to our employees
Management of the company There are 10 directors for the company. As the major shareholder, Government of Kerala nominates the BOD Professionals as well as bureaucrats are being nominated to the board. The managing Director is the only full time director in the board. The Principal Secretary of industrial Department is the chairman.
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BOARD OF DIRECTORS
The efficient director board at Travancore-Cochin Chemicals Limited ensures the smooth running of the company affairs. In their able hands, the operations at TCC go well-oiled. BOARD OF DIRECTORS
Shri K.S.Srinivas, IAS Special Secretary to Government Industries (Investment Promotion) Department Thiruvananthapuram - 695 001 Shri.V.Muraleedharan Nair Managing Director Travancore-Cochin Chemicals Ltd. Udyogamandal. Kochi 683501 Shri. R. Madhusoodhanan Nair Joint Secretary to Government Industries Department, Thiruvananthapuram -695 001 Shri. M.R. Karmachandran, Executive Director, Kerala State Industrial Development Corporation Limited, Keston Road, Kowdiar, Thiruvananthapuram -695003 Shri .J. Vijayamohanan Additional Secretary to Government Finance Department Thiruvananthapuram -695 001 Shri. N.I. Paulose, Nalpat House, Church Road,Koratty, Thrissur - 680308
CHAIRMAN
MANAGING DIRECTOR
DIRECTOR
NOMINEE KSIDC
DIRECTOR
DIRECTOR
DIRECTOR
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3.5 ACHIEVEMENTS
TCC is in the forefront to adopt and incorporate the latest technology in its plants. Different innovative and modern schemes were implemented over the course of time. Hence TCC continue to be the competitive strength in the Chlor-alkali industry. With expanded plants and higher production capacity, TCC has come out to be the profitable public sector undertaking. TCC has bestowed with various awards for excellent performance with regard to production, productivity, energy conservation and environmental protection, which is considered as an award for commitment rather than for efficiency. 1981 -Best Performance Award for Safety in the State from Directorate of Factories & Boilers, Government of Kerala 1988-89 -Best Pollution Control Award under group "Heavy Inorganic Industries" in Kerala, from Kerala State Pollution Control Board 1989 -Award for Best Performance in Safety in India under "Chemical Industries" group from National Safety Council. 1989-90 -Prize for Productivity from Kerala State Productivity Council. 1993 -Best Performance award for Energy Conservation in the State of Kerala under group "Chemical & Fertilizers above 3000 KVA" from Government of Kerala 1994-95 -Best Performance award for the Productivity in the State of Kerala under group "Large Industries" from Kerala State Productivity Council 1995-96 -Best Performance award for Productivity in the State of Kerala under group "Large Industries" from Kerala State Productivity Council. 1998 -Best performance award for Energy Conservation in the State of Kerala under group "Major Industries" from Energy Management Centre, Govt. of Kerala. 1998 -Performance award for Energy Conservation under group "Chlor-alkali Sector", Ministry of Power, Government of India. 2003 -Kerala State Energy Conservation Award (2000) in the category of Large Scale industry 2005 -National Energy Conservation Award "Chlor-alkali Sector" 2008- Pollution Control award from Kerala State Pollution Control Board // http://www.tcckerala.com/
BANKS
State Bank of Travancore State Bank of Hyderabad Union Bank of India Indian Overseas Bank ICICI Bank
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TRADE UNIONS
Recognized trade union
TCC employees association
Unrecognized trade union Thozhilali union AITUC BMS TCC employees union (INTUC)
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INDUSTRIES SERVED Rayon Paper Soaps Textiles Mineral and rare earth elements Fertilizers Heavy Chemicals Engineering Drugs& Pharmaceuticals Petroleum refining
PRODUCT-2 Chlorine (Cl2) Chlorine, a product obtained in the manufacturing process of Caustic soda is an equally important basic chemical. It is renowned water purifying chemical. It is greenish yellow gas. Chlorine as sold after liquefying. USES Producing insecticides(DDT, BHC etc.) and pesticides like Aldrin In purifying drinking water and sterilizing sewage effluents. For manufacturing PVC & allied co-polymers As a bleaching agent For producing chloramines & it organic derivatives For upgrading titanium content in limonite
INDUSTRIES SERVED Insecticides Water purification Plastics Paper& pulp Textiles Sugar Mineral processing
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PRODUCT-3 Hydrochloric Acid(HCl) TCC also produces high purity Hydrochloric acid, it is yellowish green colour. The HCl produced have concentration 30-34% INDUSTRIES SERVED Fertilizers Minerals Ossien Starch Industry Plastic Engineering
PRODUCT -4 Sodium hypochlorite: Sodium Hypochlorite, known as soda Bleach, finds its application in bleaching& disinfectant and also in the extraction of rare earth chemicals. It is a pale yellowish green colour liquid. Soda bleach is the only branded product that company producing, brand name is Ekoclean. USES As a bleaching agent As germicide& cleaning agent For sterilization
PRODUCT-5 Caustic soda Flakes Caustic soda Lye is fused to product Caustic Soda flakes. There is a continuous caustic fusion plant that produces Caustic soda flakes. It is white deliquescent solid in flakes form. Caustic soda flake have concentration 98.99%.
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4 ORGANIZATION STRUCTURE
The organizational structure involves arrangement of activities and assignments for the achievement of organizational goals. It is way by which various parts of an organization are tied together in a coordinate manner. It also illustrates the various relationships among various levels of hierarchy within the organization as well as horizontal relationship among various aspects of the organizational operations. A well planned organizational structure results in better use of resources The main functional departments are Operation department Marketing department H R D department Finance department Materials department Engineering department Electrical and Instrumentation department Projectl department
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GMT
FC
MM
MM
CS
DGMT
PM
DFC
SM
MIC
MS
MP
OM
CSO
SAO(GA&F)
SSO
APO
EM
DM(P&W)
SAOCASH
PM
ASPO
SAO(E&EDP)
SM
SAO(CO)
MTS
SAO(PF)
CEPC
CETS
SETS
SOQC
CES
MHRD
MCP
CE
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Chapter 5 DEPARTMENTS
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EVOLUTION OF TECHNOLOGY
Ist Generation: Diaphragm cell Technology TCC started with this technology. It consists of an anode, cathode and diaphragm. Anode portion and cathode portion is separated by an asbestoses diaphragm. The main drawback of this technology is that it gives NaOH having concentration only 15%. This technology was replaced by Mercury Cell Technology by 1964 25
IInd Generation: Mercury Cell Technology Here Mercury was used as cathode and Titanium as anode. It gives caustic soda with 50% concentration. But the main draw backs are high energy consumption and pollution. Because of pollution problem this technology have removed completely and replaced by membrane cell Technology by 1990s. IIIrd Generation : Membrane Cell Technology This is the latest technology being used now. It started from 1997. The ion exchange membrane cell plant is equipped from 20 electrolyses consist on three clocks on monopole fitter press type electrolyses and it corresponds to three electrolyses. The electrolysis consists of copper cathode and titanium anode chambers separated by in ion exchanges membrane made of tetra fluro ethylene and vinyl ether.
PLANTS IN TCC
Three plants are involved in the production. AGC Plant
It is designed and commissioned by ASAHII Glass Company Ltd., Japan. The plant was commissioned on 29th May 1997. The products are caustic soda (NaOH), commercial hydrochloric acid (HCl) and liquid Chlorine. It consists on 20 electrolyses.
Products NaOH lye Liquid chloride Commercial HCL Sodium hypochlorite Caustic soda flakes UHDE II Plant
The plant is designed by UHDE infrastructure Ltd, Germany. The plant was commissioned on 2005. The plant produced only 25 TPD of 32% caustic soda lye. It consists of only one electrolyser with 54 elements.
UHDE II Plant
The plant is designed by UHDE infrastructure Ltd, Germany. The plant was commissioned only 15th August 2006. this has also a production capacity of 25 TPD of 32% NaOH lye with one electrolyses with 54 elements.
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RAW SALT
BRINE SOLUTION
BRINE PURIFICATION
DECHLORINATION
ELECTROLYSIS
DECOMPOSITION
CHLORINE
HYDROGEN GAS
CHLORINE TREATMEN T
HYDROGEN TREATMENT
CCF PLANT
CHLORINE LIQUIFICATION
LIQUID CHLORINE
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PROCESS FOLLOWED
The process followed for the production in TCC is electrolysis of brine.
PROCESS DESCRIPTION
Preparation and purification brine (solution of raw salt and water) are common for AGC, UHDE I & UHDE II plants. The stages on production processes are: 1. Brine preparation and primary braise purification 2. Secondary brine purification 3. Electrolysis 4. Chlorine treatment and liquefaction 5. Hydrogen treatment and HCL synthesis 6. Continuous Caustic Fusion 7. Soda bleach preparation
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Continuous Caustic Fusion Caustic fusion is done in CCF (continues caustic fusion) plant, CCF plant is mainly for concentrating 32% NaOH Lye to 50% and 98-99% as flakes. The 32% NaOH Lye is stored in the main storage tank, a part of which goes for sale. The remaining part of 32% passed through three evaporates. (EV1, EV2& EV3) In 1st evaporates (EV1) the NaOH is heated using the vapors generated in EV2 and EV3. The stream from EV1 is then passed to EV2 and it is evaporated in vacuum at 70-800C. Then it passed through a shell and tube heat exchanger and the outcome will be 50% NaOH Lye. A portion of 50% NaOH lye goes for sales. The remaining portion of NaOH lye is passed through EV3 and heated using a eutectic mixture which containing 53% KNO3, 40% NaNO2 and 7% NaNO3 and finally we get 9899% NaOH as flakes.
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CCF PLANT
This plant has one of the most advanced technologies. It is suitable for the production of export grade caustic soda flakes from NaOH solution, which is generated in ion exchange membrane cell. It is designed for optimum low energy consumption. The equipments and plant are proven to be safe in operation.
TYPES OF MACHINES USED NO 1 2 3 4 5 6 7 8 9 10 11 12 MACHINE MEMBRANE CELL ELECTROLYSER CHLORINE COMPRESSOR HCL SYNTHESIS OVEN CHLORINE LIQUIFIER RECTIFIER AIR BLOWER AIR COMPRESSORS WATER PUMP BRINE PUMP SALT ELEVATOR BRINE SLUDGE FILTER BOILER NUMBER OF MACHINE 20+2 3 6 2 4 4 6 3 4 4 2 2
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COMPETITORS
There are about 40 companies in India which are producing the same kind of products that TCC in manufacturing. Of the 40 companies, 12 are concentrated in the southern part of India. All these companies are private sector companies except for TCC. Some of the competitors are: 1. 2. 3. 4. 5. 6. 7. 8. Chemfab Alkalis Ltd, Pondicherry Andra Sugar Ltd DCW Ltd, Mettur Kothari Petrochemical Ltd Tamil Nadu Petro products Ltd SPIC Chennai Sree Royal Seema Alkalis, Andhra Pradesh Chemplast, Mettur 9. Chemtab, Pondicherry
CUSTOMERS
1. Kerala Water Authority 2. Hindustan Unilever Ltd 3. Hindustan Insecticides Ltd 4. Bharat Petroleum Ltd 5. Kerala Ceramics Ltd 6. Kerala Minerals and Metals Ltd 7. Hindustan Raw Earth Ltd 8. Steel Authority of India Ltd 9. Tamil Nadu Newsprint Ltd 10. Indian Oil Corporation 11. Indian Aluminium Company Ltd 12. Kerala Chemicals and Proteins Ltd 13. Travancore Titanium Products Ltd 14. South India Viscose Ltd 15. Karnataka Soap and Detergents 16. Hindustan Organic Chemicals Ltd 17. Grasim Industrial Ltd 18. Pigments India Ltd 19. Hindustan Newsprint Ltd 20. Binani Zinc Ltd 21. Travancore Rayons Ltd
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Pricing policy: The Company has adopted differential pricing policy. The price is fixed through negotiation for long term contracts. An open body named Alkali Manufactures Association of India (AMAI) fixes the selling price for a particular period. Price of the product is fixed by adding the production cost, excise duty, VAT and freight charges. Tenders are issued to the customers with a price quoted and if it turns out to be a lowest bid and satisfies the customers after the sales are done. The major markets are Kerala, Karnataka and Tamil Nadu. Except caustic soda, all other products are sold in South India. Long term contracts are being entered with customers. Price concessions are given to long distance customers taking freight element into account for transportation of the product, raw materials and all other logistic purpose. Company has given contracts to outside agencies. The contracts are made for each material and this is done on an annual basis.
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PLACE: Place is concerned with various methods of transporting and storing goods and then making them available for the customers. Getting the right product to the right place at the right time involves various distribution channels and systems. Channels include direct selling to customers. There are no intermediaries as such. For caustic soda, there are some agencies outside Kerala for marketing. The entire marketing Functions are done from company office at Udyogamandal and no marketing office outside the Company. All payments take place through SBT (State Bank of Travancore). PROMOTION: All the products are industrial products. Since TCC is the only manufacture of its product in the state, there is no real competition in the local market. The customer are aware of the existence of the company and where and how to get the products. Hence, there are not much promotional activities. Marketing factor is price, which depends on the national and international price. The company does advertise is some academic and trade journals. The promotional activities include regular press releases, creation of documentation etc. Other promotional channel includes the company website i.e. www.tcckerala.com.
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CREDIT POLICY
TCC has flexible credit policy. The companies which purchase above 200 tones in a session are given 30-60 days credit. For 5-10 tones of purchase, ready payment is to be made. The Marketing Manager and the Finance Manager divided the companies for which the credit should be given and how much credit has to be given. The Managing Director takes the final decision.
MARKET ANALYSIS
During the year 2005-06, the company achieved a record turnover of Rs.1.26 cores (including excise duty). This was due to higher production, increased demand and better sales realization. There was recession toward the end of that financial year but it was not reflected in TCC as the contracts were already signed. As a result of the further recession, the company profit level was decreasing. It has been determined that the company is on running on profits again in this financial year.
OBSERVATIONS DEPARTMENT
AND
LIMITATIONS
OF
MARKETING
The Marketing Department of TCC is structured as line organization. There is no formal committee system existing in TCC. Products of TCC face a tough competition in the market. The competitors are private companies. TCC is the only Public Sector Undertaking (PSU) Company. In order to survive in the market, market research is conducted to explore the new market and find out new customers. Sodium hypochlorite, names as Eko Clean, is a cleaning agent. It has been launched in the market. But there exists no proper system for the promotion of this product. Eko Clean is a very promising product but proper product awareness programs and sales promotion activities are not taken up. Customer satisfaction trials are also not taken up. Due to the lack of market analysis, there is no product innovation and hence TCC is unable to compete in the market.
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PURCHASE DEPARTMENT
This section handles the purchase activities of the company. This department procures various raw materials needed for production at the right time at the right quality from the suppliers. If purchase value is more than 5 lakh, notification should be given in any two newspaper and select the lowest bid according to the verification by a committee, which includes purchases manager, internal auditor and one person from finance department. If purchase value is 5 lakh or less, purchase section itself can select the supplier either by past experience or by the advice of the users of that particular material Steps in Purchasing Purchase intent: intender raises material procurement request to inventory section. If the material is not available, the form is send to purchase department Enquiry: purchase department send enquiry to approved vendors Receiving quotation: quotations are received and opened by committee, which contain a member of purchase department, one from finance and one from internal audit. Preparation of comparative statement: quotation is tabulated and purchase department prepare comparative statement. It is send to indenter. The indenter gives recommendation Approval: it is verified by audit section Concurrence from audit department is obtained Purchase order is send to the concerned party
STORE AND INVENTORY CONTROL DEPARTMENT Stores department stores materials about 6,000 items are stored which may include raw Materials, chemicals, electronics goods, equipments, sparer, instrumentation etc. The various items are given 10 digit codes for easy handing. It has computerized system of material handling. 37
Steps in Receiving Materials 1. Visual Inspection: First check the purchase order especially purchaser order number. Only after this the materials is received and stored. 2. Preparation of receiving report 3. Inspection report: check whether the material is actual and inspection is done by manager (stores) 4. Inspection report is made 5. Payment: Check the material, receiving intents and inspection report is dispatched to finance department, purchase deparement5 and originator after the inspection. Payment is done only after this. 6. Preparation of rejection report: If the material is no satisfied the specifications goods rejection note is made. It is sent to purchase department. They inform this to the party; new supply is done only after this. Inventory Control Section Inventory control is an essential function of store department. It helps to reduce and increase profit of the organization. If the material is not coded, codification is done by MIC for controlling the inventory, certain levels of inventory such as maximum, minimum and recorder level is prepared. When the stock reaches the recorder level, purchase request is made. Functions 1. 2. 3. 4. Maintaining a minimum stock of items required by various departments. Preparation of various reports regarding inventory Evaluation of MPR Preparations of material code system various items are given a 19 digit codes for easy handling 5. Fix various level such as minimum level maximum level recorder level, danger level etc. for each item 6. Calculate and minimize lead time 7. Separate materials into Indian/import Inventory Control Technique used in TCC ABC Analysis It is based on consumption and cost. Here the inventory is divide into 3 categories A, B, and C based on the value of stocks. Among the various items in the stores 10% cover 70% of total cost of stocks are included in the A category. Another 20% of stock covers 20% of total cost and falls in the B category. The remaining 70% of materials in the stores contribute 10% of total cost of materials and are include in the C category. Different controlling techniques are applied for each category
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Objective of Inventory control Unwanted piling up of inventory is prevented material codification to avoid duplication To determine the item to be stored To determine which and how much to replenish To keep suitable records. To disclosure absolute
The details are handed over to the training department by the respective department heads. Training department does compilation of the identified training needs of the employees. Necessary training programmers are arranged by training department to cater the identified training needs of the employees. Training department organizes training programmers using internal faculties or engaging faculties from reputed organizations. The training department in consultation with concerned department heads organize in-house training programmers on special requirements. From the employees who attend the in-house training a feedback about the usefulness of the training is obtained and consolidated. The concerned department then evaluate the feedback from the participants after a period of 2-3 months to ascertain the effectiveness of the training programmed. Employees are also sent to other reputed institutions for training. A feedback from these institutions is received after the completion of the training. Based on this feedback, the effectiveness of the training is evaluated.
The achievements against annual training calendar is reviewed half yearly by the departments. The number of programmers held, number of employee participation, highlights of training, effectiveness, feedbacks etc is evaluated. The training department maintains a register on the training programs attended by the employees. The training department also maintains the format received from participants after getting it evaluated by the concerned department heads. The managerial personnel of the company are imparted training to improve their managerial capabilities at the HRD centre of the company and outside institutions that are depending upon TCC. Training is imparted using both on the job and off the job training methods. Training programs can be broadly classified as: Internal Training The HRD Department has the provision for conducting training. The HRD centre is a hall, which can accommodate around 40-50 people and has a public address system and an LCD projector. Every month a three day training program is held for workers. The workers education centre, under the labour ministry conducts these programs on a contract basis, which is recorded annually. 20-25 workers from various sections are selected every month. 4-5 officers from WEC conduct the training program and towards the end fixes the dates for the programs next month in consultation with the manager HRD. The topics covered include personality development, management development program, interpersonal relations, impact of globalization, effective communication and others. Other in- house programs are conducted by agencies like Kerala State productivity Council. In such programs the officers and the subjects are selected by TCC. These are conducted mostly for workers on pollution, safety etc. During installation of the Membrane plant, officers were sent to Japan for training. They came back and trained others here. There for on-the- job training is prevalent in all the sections of the company.
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External Training Programs TCC staffs are sent for external training based on the intimations received from external agencies, Officers had been sending to Madras, Thrivananthapuram and other places. But now since the company is not financially sound, it does not send its employees to other states. The management doesnt keep aside budget for training need. Various other training Programs Need based training: Here initially, it is to be determined that what is the level of knowledge and skill an employee requires in a particular job. Next is to determine how many employees have to be given this training. On the basis of these needs, training is given to the employees. General Training: In order to provide this type of training, one has to determine what would be the trainees growth potentials, up to what level he can grow in the organization etc. A performance appraisal has to be done to evaluate his present performance. Training is then given on the basis of the results of appraisal. Induction Training: This training is mainly provided about the activities, procedures, rules and polices etc. of the organization. It is also done to know different people in different departments to get introduced to their colleagues. Customer Training: Customers and drivers of transportation are given classes and training about handling chlorine and other products under various situations. If any leakage happens during transportation, what are the steps to be taken to counter the harmful effects that these chemicals cause. Technology Training: The employees are trained on the new technologies that are entering the market. With efficiency of the employees in these technologies, the company can increase its production. Feedback from the employees about the training is obtained and consolidated. The department also ascertains the effectiveness of training program from the feed back after a period of 2-3 months. Personality Development Programs : These programs are conducted by experts from various reputed organizations and training is mainly for managerial staff.
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PERSONNEL DEPARMENT
FUNCTIONS OF PERSONNEL DEPARTMENT Recruitment: This is done through professionals, executive employment exchanges and P.S.C. Manpower planning: Ascertaining the number of vacancies Welfare functions: Including statutory and non- statutory welfare measures. Grievance handling as per the provisions of Industrial Dispute Act and as per Factories Act. Maintaining company discipline: as per standing order act Industrial relations Public relations Job descriptions Job specification Job Analysis Training Staffing Performance appraisal Wage and salary administration General Administration
MAN POWER OF TCC As per employee statement as on 01 July 2010 Category Managerial Staff` Employees Total Number 144 664 778
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LABOUR POLICIES There was no labour unrest in the company for the past 20 years. An atmosphere of trust and mutual understanding is developed between the management and the labour unions. Long term agreements are in force for various periods. They are intended to maintain, promote and improve industrial and economic relations between the Company and its workers. The guidelines for wage patters, promotion policies, leave grievance, fringe benefits, production incentives etc, are determined in the agreement. These agreements are the means for the settlement of all disputes and grievances, and these lead to an efficient production and productivity. The last long term agreement was signed in 2000 for a period of 4 years; subsequent to this an interesting revision was given with effect from 1-04-2004. The purpose of this agreement is to channelize collective bargaining relations, to ensure speedy and fair disposal of grievance to maintain harmonious relation between the Company and its men, to establish reasonable wage and their working conditions to prevent strikes, shutdown and lockouts to increase productivity, to ensure uninterrupted relationship based on a well understanding of each other for the benefit of the industry and the nation. MAN POWER PLANNING An important function of the PM is that of manpower planning. The list of retiring employees is prepared 3-4 year in advance and call for recruitment has to be approved by the MD. The company will inform the vacancies to the Public Service Commission around five years in advance. Any need for immediate recruitment is made known to P.S.C. Internal Sources Kerala Public Service Commission Technical and District Employment Exchange Direct recruitment by advertising
PROMOTION POLICY Promotion policy is divided into two, Non managerial Promotion Policy and Managerial Promotion Policy. Non Managerial Promotion Policy Vacancies, other than to be filled by the recruitment through PSC, will be filled as per the policy and procedure which are laid down through the terms of settlement. If a prospective employee has the minimum qualification and stipulated service, then he can be considered for promotion upon evaluation of attendance, services record and quality of work. If hands are not available for promotion in the respective section/ department, it is notified on the company notice board. Candidates with the same grade and stipulated length of service considered can apply. If the candidates are not found available after test, a lower grade with stipulated service can be given double promotion. 43
Managerial Promotion Policy Here a stipulated length of service in the immediate lower grade is the main criterion of promotion. Promotion from worker category to officer cadre shall be ordered only with Board resolution and permission of Government. Time bound grade promotions are considered in the case of the lowest two managerial scales. Periods of ten years service can be considered for promotion. WAGE AND SALARY ADMINISTRATION A sound wage and salary administration plan exists in the organization. It has established a fair and equitable compensation offering i.e., similar pay for similar works. The settlement of wage and salary is done by the accounts department. The trade unions/ management have a hand in making the wage and salary plan. Managerial staff is allowed a maximum of 60 minutes late arrival in the morning during a payroll month and workers allowed 5 minutes late moving in a working day the worker/ manager is eligible to four hours short leave in the evening. Punching cards helps to check in and aid check out of both workers and managers. There are separate punching machines for the staff and managers. Over time allowances are covered as per the Factories Act. The workers work in shift. There are three shifts 1. 8am-4pm 2. 4pm-12am 3. 12am-8am The employees are paid shift allowances as per the shift. The night shifts are the most well paid shift. The employees either work one shift i.e. 8am-4pm shift or they work two shift i.e. 4pm-8am shift. Hence the employees need to work only 2 night and 2 day shifts in a week. ADMINISTRATION OF LABOR WELFARE The labour welfare measures of the company are planned, implemented and monitored by its personnel department. The DPM & WO is in charge of co-operating the labour welfare activities. He acts as a liaison officer between the employees and employer. He puts the grievances of the labour before the management and take all steps redress them. He assists the management in exercise of their rights vis--vis each other. WELFARE PROGRAMME Labour welfare measures in India can be classified as statutory and nonstatutory. Statutory welfare comprises those provisions which are binding on employers by law. These relate to certain essential working conditions and standards of health. Non- statutory welfare programs are provided voluntarily by employers. For example, housing, education, recreation, transportation etc are examples of nonstatutory welfare measures. Thus statutory welfare ensure a bare minimum of facilities and reasonably good working conditions, employers are free to provide, nonstatutory measures in varying degrees. 44
Statutory Welfare Measures Accident benefits Annual Bonus Drinking water Occupational Health Centers Rest rooms and Lunch rooms Sitting facilities Storing and drying facilities Toilets and bathrooms Allowances to employees Educational Allowances Bata( Perquisites or Amenities) Overtime Allowances Leave
Non- Statutory Welfare Measures Housing Facilities 1. Main Colony 2. main Colony Annexed 3. Pathtalam Colony Medical Attendance Scheme Group Accident Policy Production Bonus Voluntary Retirement Scheme T.C.C. Canteen Security and protection Working Time Performance Appraisal
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Leave The number of leave/holidays in a calendar year will be as follows: Privilege Leave 30 days Causal Leave 15 days Sick Leave 15 days (for workmen to cover under ESI scheme) Holidays Paid Holidays 13 days (including four compulsory holiday) Gratuity Gratuity is paid as per the Gratuity Act.
Bonus
Production Bonus: Production Bonus is paid on the basics of production. A production linked bonus is given to the employees and this scheme is called Monthly Bonus Scheme 1998. As per this scheme the employees cooperate to maximize production and minimize consumption of raw material and eliminate wastes.
Attendance Bonus: Attendance bonus is paid to all permanent workmen on payroll month basis along with wages for each month as per the schedules given below. However in a payroll month in which the working days stipulated below are inadequate and a workman attended all the available working days, he will be paid full Attendance Bonus. GRIEVANCE REDRESSAL Grievances are to be solved effectively for smooth functioning of the organization. Grievance redressal committee is hence statutory. It is legally maintained. Trade unions are satisfied with the present condition in TCC and hence there is no grievance redressal committee. The healthy employer- employee relationship favours this.
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0 -249 7222 230 4007 4898 2 1315 7878 -891 4267 982 2131 125 0 7878
0 -281 7783 41 3636 4701 2 1066 7827 -1065 4008 979 2131 338 0 7828 47
0 28 8558 11 3457 5474 2 786 7340 -2017 4030 807 2131 0 0 7340
0 49 9407 1 3717 5583 2 813 8357 -1866 4574 588 2131 1064 0 8357
0 523 7998 942 3576 5859 0 862 7519 -2283 4856 144 2131 388 0 7519
Organizational study in TCC 2009-10 816 6330 590 19 367 55 601 1130 59 1186 0 0 4007 688 2008-09 1065 6718 247 29 535 90 603 974 102 1056 0 0 3636 689 2007-08 1345 6541 295 17 244 62 400 1229 115 1095 0 0 3457 1040 2006-07 1318 7541 308 0 248 64 425 1425 139 1108 0 0 3717 969 2005-06 1269 5715 109 0 280 161 413 1099 124 1386 4 0 3576 1350
Net worth Capital Employed Finished Goods Work in Progress Raw Materials Materials in Transit Store and Spares Sundry Debtors Cash and Bank Balance Loans and Advances Other Current Assets Store and Spares in Transit Total Cash Profit / Loss
Finance is a vital part of any business organization. It controls the procurement of funds in the company. TCC has an efficient finance department headed by the deputy finance controller, who is assisted by an efficient finance manager. DFC is responsible for shaping the fortune of the company, preparing budgets, raising funds and keeping different accounts. There is a management information system to assist the finance department. Each cash payment and receipt is stored in computer. The internal audit system is carried out in the company by the initial audit section headed by the charted accountant. Regular reports are given to the department heads for taking the corrective actions where necessary. The budgets are reviewed, deviations are analyzed and necessary corrective actions are taken. The main function of the bill section is passing of bills, which is done after checking quotation, order and production. Bills are passed after seeing that materials received is in conformity with the purchase order. The finance department itself is divided into different sectors like general accounts, costing bills, establishing and provident fund and account section which have its own function. Information provided by finance department P&L Account Balance sheet Statement of sales, production and capacity utilization Cash flow statements Statements regarding raw materials and process chemical variances
Types of bills Invoice of suppliers Maintenance bills for various departments Petty work bills Transportation bills 48
TCC has an exclusive PF trust for their employees. The company gives money to the trust. Trust invests this properly. Retirement benefits are issued from this fund. The companys liability towards gratuity to employees is covered by group gratuity scheme with the LIC of India. The following are the banks in which the company has account SBT Tuticorin Indian Overseas Bank, Kochi State Bank of Hyderabad, Kochi Union Bank of India, Kochi SBT Udyogmamdal SBT Ernakulam ICICI, Kochi Sources of funds For efficient production and sale there must be adequate finance for fixed assets, raw materials to meet day-to-day expenditure. The company raise funds by mean of equity funds and borrowed fund. The share capital includes authorized, issued, subscribed and paid up capital. Subsidy has been received from DSIR and government of Kerala. Loans are obtained as term from IDBI and material loans from government of Kerala.
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INTERNAL AUDIT
The internal audit system in the company has been established since long. The internal audit reports directly to MD. The staff of the department includes on stock verifies and two senior assistants.
FUNCTIONS
Pre audit of all purchase and contract files. Verification of sales order and related records. Verification of petrol and wage salary of workers, staff and officers. Incumbent proposal of management staff, salary fixation etc. Verification of various vouchers, journal, ledgers, and other records of financial and cost accounts sections. Operational audit performance, management audit etc. if necessary.
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New Projects in Discussion Sale on drinking water TCC have a water treatment plant with excess capacity. Serious discussions are going on regarding the sales of water in total area at a reasonable rate. Also, they are discussing on the enhancement of the 175TPD caustic soda production to 225TPD.
New projects in consideration Development on a new rutile plant Transportation through water
Functions Provide different utilities including statutory services Provide operators and transporters for automobile works Chlorine cylinder maintenance including regular maintenance, painting and statutory testing Welding, machinery painting and salt charging. Statutory research of equipment and tools. Maintain and run workshops for fabrications and machineries.
Types of Maintenance Break down Maintenance: machine checking is done on regular basis to avoid break down Preventive Maintenance: systemic check is done to avoid break down
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Function Maintenance of existing building Painting, insulation and tender issue of civil work. Roof maintenance work Tender issue for civil works Preparing MPR (Material Procurement Requirement) of steel sheets, cement and other construction at materials except sand.
Electrical Section
Electricity is a raw material for TCC, since the manufacturing process involves electrolysis. The major function of the Electrical Department is to condition the electricity received to such a form that, it can be fed to the process.Electricity is received by TCC from Kerala State Electricity Boars 220KV substation at Kalamassery through two 110KV feeders. The substation to receive this supply and step it down to 11KV level has got 50MVA capacities. The capacity contracted by TCC is at present 20MVA, which is required at the present level of production. The 11KV supply is distributed from an 11 KV panel in the substation to various transformers, rectifiers and other equipments. The rectifiers are equipments, which convert alternating current to direct current at the voltage level required for the process. The rectifiers in plant 1 are 61 KV capacities. In plant I and II there are four auxiliary transformers each. There is a transformer in the water treatment plant located about 3 Km away from the company. The functions of the department include operation and maintenance of the substation, transformers and rectifier systems make arrangements to meet the statutory requirements, periodical inspection etc, take part in the production planning process, provide advice regarding the matters related electricity and electrical equipments etc, to the top management and also documentation and preparation of drawings etc. Instrumentation Section Process Instrumentation is a vital part of modern day manufacturing process. It ensures reliable and accurate operation of the equipments and smooth control of the process with minimum human intervention. The modern day processes are all microprocessor controlled. It avoids the errors inevitably caused by the humans. The functions of the section includes preventive and breakdown maintenance of the control equipments and systems, coordination with the external agencies supplying software, hardware etc, provide advice to the top management in related matters, etc.
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6.1 STRENGTH
1. TCC is one and only chlor- alkali unit in the state with 80% market share. 2. There has not been any strike in the company for the past 15 years is a proof of excellent labor relation 3. TCC is a mother industry which feeds other industries. 4. TCC is pioneer of rayon grade caustic soda and the Company has created creditability and reliability among its customers 5. It has good strength of skilled work force, educated staff and professionally qualified managers 6. Products are basic chemicals and considered as building block of several products 7. Strategic location with no other competitors around. The company is located at the centre of the industrial belt where maximum consumption of Chlor-alkali products takes place. 8. The company has excellent facilities such as near to NH railway lines, seaport and airport. 9. No Scarcity of water as it is situated on the bank of Periyar. 10. Good record of production and financial performance in the past.
6.2 WEAKNESS
1. Company has surplus work force and hence employ cost is high when compared to industrial cost. 2. TCC is a public sector undertaking the political condition of the state affect companys management. The major decisions of the company have to be approved by the Government, which delays the implementation of plan and thereby creating organizational inflexibility 3. Logistics are unfavorable as the raw materials are brought from distant places 4. Financial options are limited being the company is under the state government. 5. Major markets are distantly located so that the units surfaces from huge transportation cost. 6. Large consumption of energy 60% of manufacturing cost is electricity.
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6.3 OPPORTUNITIES
1. The overall improvement in the trade and business in the economy result in bringing more demand for the products of TCC 2. Own generation of power may result in to lower cost of key input, which enables the company to explore the possibilities of international market 3. The per capita consumption of chlor-alkali is very low when compare to developed countries the economic development in the country may result in higher demand for the product. 4. Proposal for hydal project will benefits TCC and power so obtained can be utilized for running of the plant of TCC thus reducing the cost incurred on electricity.
6.4 THREATS
1. Hike in price of electricity 2. Competition from foreign countries 3. The import duty policy of central government is not fair and caused periodic fluctuation in the price of companys product. 4. Industry is rather a matured one in the life cycle hence there is a low prospect for the future growth and might be on a decline path if substitutes are found out. 5. The infrastructure of the company rather obsolete compared to others.
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7.1 FINDINGS
The major customers of TCC are pharmaceuticals companies, soap industries, insecticides and pesticides industries, paper industries and rayon industries. The major competitors are SPIC and Chemplast. Location preference, reference and quality are the major criteria for selecting manufacturer. Company follows management by convenience and not management by objectives. Pricing policy of TCC is an average, according to the industrial standards. TCC have a flexible credit policy, they give credit facility up to 30-45 days and they are getting credit of 60 days from suppliers. The customers have reported no rejection of TCC product, which shows the product satisfaction. In case of lead time, it was noted that order processing took too much time due to lot of work. The strength of TCC is the quality of their products, services and the delivery. No strikes have been reported for the last 10 years, it shows the relationship of workers and management as better. The company is depending heavily on electricity and around 60% of their product price is for this. New technology of Membrane cell has the advantage of pollution free environment and also it brings about 30% reductions in electric power requirements. No major environment pollution has been reported for the past 50 years of operations.
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7.2 SUGGESTIONS
The company can invest more in the R & D cell in order to have new inventions in this field.
TCC should take certain adjustment in the price of the product. In order to increase the production the company may try giving some motivation to the employees.
The company shall take necessary actions to maintain the ratios at the standard level.
Improve the first aid facilities by providing free medicines and treatments. TCC should try necessary steps to increase the net profits. TCC should persuade workers to use safety equipments more effectively Eko Clean can be commercialized and hence profit can be reaped The company should conduct market research to understand the movement of the products in the market and to identify the potential and new customers
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7.3 CONCLUSION
TCC was established in 1950, with a nominal production of 20 TPD, TCC have the distinction of being Indias pioneer producer of Rayon grade caustic soda with a capacity of 175TPD. TCC have marked changes in the technology of process and also stresses importance in productivity, employees morality quality and clean environment. TCC is looking forward to achieve more and more greener pastures in the days to come. The study has accomplished several goals. The study has helped to familiarize with working condition of the organization. It has helped to study the coordination among various departments. The study has given a general idea about the functioning of TCC. It helped to analyze and understand the administrative functions. As per the study conducted, it has been observed that the capacity of production has increased and the company is recovering from the fall in profits. Since an organization is a human grouping in which work is done for the accomplishment of some specific goals or mission, this organization is trying to remain on top position by utilizing and maintaining its resources to maximum. Proper management is a challenging job, and here in this organization proper administration and social system are prevailing and it accounts for the strength of the organization on order to attain its objectives.
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ANNEXURE
MD DGMT PM OM EM PM SM MTS MHRD CEPC CETS CES SETS SOQC MCP CE DM(P&W) FC DFC SAO(GA&F) SAO(CASH) SAO(E&EDP) SAO(CO) SAO(PF) MM SM MM MP APO CS - Managing director. - Deputy General Manager. - Personnel Manager. - Operating Manager. - Engineer Manager. - Project Manager. - System Manager. - Manager Technical Service. - Manager Human Resource Development. - Chief Engineer Pollution Controller. - Chief Engineer Technical Service. - Chief Engineer Safety. - Senior Engineer Technical Service. - Senior Officer Quality Control. - Manager Corporate Planning. - Civil Engineer. - Deputy Manager Personnel and Welfare. - Finance Controller. - Deputy Finance Controller. - Senior Account Officer General Accounts and Finance. - Senior Accounting Officer Cash. - Senior Accounting Officer. - Senior Accounting Officer Costing. - Senior Accounting Officer Provident. - Marketing Manager. - Sales Manager. - Material Manager. - Manager Production. - Assistant Personnel Officer. - Company Secretary.
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BLIOGRAPHY
C.R. Kothari -Research Methodology, New age International Publishers, Second Edition 2004 Philip Kotler - Marketing Management, Prentice Hall of India, PVT LTD ,Tenth Edition 2002 Annual Report -2006-2007 Travancore Cochin Chemicals LTD. WWW.TCCKERALA.COM WWW.BUSINESSLINE.IN WWW.MONEYCONTROL.COM
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