a report 0n the ion study at

Travancore Cements Ltd.

LIST OF TABLES & CHARTS

Organisation study 2008

TABLE OR CHART Page NO

Study plan 5

Organization structure 17

Profit & Loss A/c 21

Balance Sheet 22

Structure of the production department 25

Production process 33

Structure of the personnel department 35

List of Apprentices 45

Allowances to employees 46

Employees’ strength of TCL 47

Structure of finance department 48

Structure of the marketing department 55

Pricing of the product 57

Structure of the purchase department 61

1


CHAPTER-1INTRODUCTION



GENERAL INTRODUCTION

When earth itself was undergoing intense geologic changes, natural cement

was being created. It was this natural cement that humans first put to use. Eventually,

they discovered how to make cement from other materials. Cement is a finely grounded

powder which when mixed with water sets to a hard material. Cement has been most

exclusively used as a building material for past several years and remains so even today.

It is exclusively used in constructing roads, buildings, bridges, dams, canals and in

number of other places. New users are being found all the time, as now we have cement

concrete railway sleepers, electric poles, tenting and even manhole covers. No

replacement exists for the cement in foreseeable future and it is bound to retain its

prominence in the field of construction.

The ancient Romans developed cement and concrete similar to the kinds used

today. They manufactured cement by mixing slaked lime (lime with water) with a

volcanic ash called Pozzuolana. People lost the art of making cement after the fall of

Roman Empire in AD 400’s. In 1759, John Sneaton , a British Engineer found how to

make hydraulic cements by using blue lime with clay content and Pozzuolana from Italy.

I. C. Johnson produced Portland cement in 1845. Portland cement contains about 60%

lime, silica and 5% alumina. Iron oxide and Gypsum make up the rest of the materials.

In the plant the materials go through a chemical process that consists of three basic steps

namely crushing, grinding, burning and finish grinding.

Cement was developed by Joseph Asp Din of England. He manufactured

commercially the improved quality of Portland cement in a country market kiln in the

year 1848. The present day high quality cement is unique versatile building material, a

product of technological development. Cement produced on 21st October 1854 was

patented as Portland cement.

Industrial era in Kerala and its beginning from the time of Sir C.P Ramaswamy

Iyer, Diwan of Travancore State during the pre-independence period. He knew that the

cement is one of the basis industrial needs for the speedy industrialization of the state

and felt it is very essential for the state to have atleast a cement factory. But lime stone

deposits of the required quality were not available to start a cement plant factory in

travancore. However, lime shells available in the backwaters offered in alternative

ofcourse a better source for calcium raw material. Sir C.P Ramaswamy Iyer induced the



promoters of TCL for pulling up cement plant based on the lime shell reserve. Thus the

first cement plant starts its operation on 7.12.1946 in Kerala.

SCOPE OF THE STUDY

The study is about the major functioning of Travancore Cements Ltd. Nattakom, The

study is mainly based on the details collected from each department. Each and every

activities of the company is studied very carefully with the data available. This study is very

beneficial to the future managers as they are put into the real life situations. A study on all the

departments can help to improve the process and there by an over all improvements in the

company’s performance can be made.

OBJECTIVE OF STUDY The objectives of the study are:

To get familiar with the organization.

Getting practical experience regarding the organisational function.

To learn about the policies and functions of the organisation

To understand the culture in the organisation and its effect on employees.

To get industrial exposure and experience.

To understand the marketing and production methods To acquire knowledge

about the managerial aspect of the firm.

REASON FOR SELECTING THE COMPANY The following are the main reasons why I selected TCL for my

organizational study:

TCL is one of the oldest manufacturing industries in Kerala.

TCL have sufficient number of departments and also the one that is engaged

in active performance in the industry.

TCL is an organization working with a big work force.

TCL is one of the famous organization in Kerala involved in the

manufacturing activities.



STUDY PLAN

15-05-2008 General study

16-05-2008 General study

19-05-2008 Visited running plant

20-05-2008 Observed the working of dredger& unloading of lime shell

21-05-2008 Visited production department

22-05-2008 Visited production department

23-05-2008 Visited personnel department

26-05-2008 Visited personnel department

27-05-2008 Visited finance department

28-05-2008 Visited finance department

29-05-2008 Visited marketing department

30-05-2008 Visited marketing department

02-06-2008 Visited purchase department

03-06-2008 Visited purchase department

04-06-2008 Visited packing house, time office, security department

06-06-2008 Visited maintaince department, work shop etc

09-06-2008 Visited lab, transportation department etc

10-06-2008 Preparation of report

11-06-2008 Preparation of report

12-06-2008 Submission of report

13-06-2008 Applied for certificate



DATA PROCESS

METHODOLOGY OF THE STUDY

Research methodology is a way to scientific and systematic research for pertinent

information on a specific topic and solves the research problem.

METHODS OF DATA COLLECTION

The data collected constitutes both primary and secondary data.

PRIMARY DATA

Primary data are those which are a fresh and for the first time and thus happen to be

original in character. Primary data were collected by direct interview with the authorities and

staffs and by observation and participation.

SECONDARY DATA

Secondary data are those which have already been collected by someone else and

which have been passed through the statistical process. Secondary data were collected

from various records kept in departments, company profiles, magazines and websites.

LIMITATION The following are the limitations which I found during my organization study:

Some of the data were treated confidential and hence it was difficult to get the

same.

Most of the datas’were collected through interviews and so the information is

subjected to be biased.

A detailed interview schedule couldn’t be administered to get primary data.



CHAPTER 2

INDUSTRY PROFILE



CEMENT INDUSTRIES IN INDIA The cement industry comprises of 125 large cement plants with an installed

capacity of 148.28 million tonnes and more than 300 mini cement plants with an

estimated capacity of 11.10 million tonnes per annum.

The Cement Corporation of India, which is a Central Public Sector Undertaking,

has 10 units. There are 10 large cement plants owned by various State Governments.

The total installed capacity in the country as a whole is 159.38 million tonnes. Actual

cement production in 2002-03 was 116.35 million tonnes as against a production of

106.90 million tonnes in 2001-02, registering a growth rate of 8.84%. Major players in

cement production are Ambuja cement, Aditya Cement, J K Cement and L & T cement.

Apart from meeting the entire domestic demand, the industry is also exporting

cement and clinker. The export of cement during 2001-02 and 2003-04 was 5.14 million

tonnes and 6.92 million tonnes respectively. Export during April-May, 2003 was 1.35

million tonnes. Major exporters were Gujarat Ambuja Cements Ltd. and L&T Ltd.

The Planning Commission for the formulation of X Five Year Plan constituted

a 'Working Group on Cement Industry' for the development of cement industry. The

Working Group has identified following thrust areas for improving demand for cement;

i. Further push to housing development programmes;

ii. Promotion of concrete Highways and roads; and

iii. Use of ready-mix concrete in large infrastructure projects.

Further, in order to improve global competitiveness of the Indian Cement

Industry, the Department of Industrial Policy & Promotion commissioned a study on the

global competitiveness of the Indian Industry through an organization of international

repute, viz.

For India, the world's second largest producer of cement, the recent boom

in infrastructure and the housing market has only boosted its cement industry. Add to

that an increasing global demand and a flurry of activity in infrastructure projects –

highways roads, bridges, ports and houses – has sparked off a spate of mergers and

acquisitions in the sector. Furthermore, the country’s finance minister, P. Chidambaram,



has stated that India would double spending on infrastructure over the next five years to

sustain its record economic growth and modernize its infrastructure.

Cement companies are fast developing plants to provide for a rapidly

expanding economy. The cement industry is therefore poised to add 111 million tonne

(mt) of annual capacity by the end of 2009-10 (FY10), riding on the back of

approximately 141 outstanding cement projects. According to a report by the ICRA

Industry Monitor, the installed capacity is expected to increase to 186 mt per annum

(mtpa) by FY08-end, and 219 mtpa by end of FY09, and further up to 241 mtpa by

FY10-end. As a result, India’s cement industry will record an annual growth at 10 per

cent in the coming years with higher domestic demand resulting in increased capacity

utilisation.

DOMESTIC PLAYERS

While the Cement Corporation of India, a Central public sector

undertaking, comprises 10 units; the various State governments own 10 large cement

plants. Among the leading domestic players in terms of cement manufacturing are:

Ambuja Cement, Aditya Birla Group (which owns UltraTech Cement), ACC Ltd.,

Binani Cement, India Cements and J K Cement. They are not only the foremost

producers of cement but also enjoy a high level of equity in the market.

GLOBAL PLAYERS

Rapid urbanisation and the booming infrastructure have lead to an

increase in construction and development across India, attracting even the global

players. The recent years have witnessed a surge of foreign direct investment in the

cement sector. International players like France's Lafarge, Holcim from Switzerland,

Italy's Italcementi and Germany's Heidelberg Cements hold more than a quarter pie of

the total capacity.

Holcim, one of the world's leading suppliers of cement, has 24 plants in the

country and enjoys a market share of about 23-25 per cent. It will further invest

about US$ 2.49 billion in the next five years to set up plants and raise capacity

by 25 mt in the country. Holcim has a global sale worth about US$ 20 billion,

where India contributes US$ 2–2.5 billion.



Italcementi Group, the fifth largest producer of cement in the world acquired full

stake in the K.K. Birla promoted Zuari Industries' cement, to strengthen its

presence in India lining up US$ 300 million investment to increase the capacity

of Zuari Industries from 1.7 mtpa to about 6-7 mtpa. Moreover, it plans to invest

US$ 174 million over the next two years in various greenfield and acquisition

projects.

The French cement major, Lafarge, acquired the cement plants of Raymond and

Tisco with an installed capacity of 6 mtpa. It plans to double its capacity to 12 mt

over the next five years by adopting the greenfield expansion route.

Heidelberg Cement has entered into an equal joint-venture agreement with S P

Lohia Group controlled Indo-Rama Cement. It aims at a 50 per cent controlling

stake in Indo-Rama's grinding plant of 0.75 mtpa at Raigad in Maharashtra.

Heidelberg is also taking over Mysore Cement of S K Birla group at a

consideration of US$ 93 million.

DECLINING ROLE OF PUBLIC SECTOR

Historically, cement has been one of the most important areas of

operations for the Indian private sector. Unlike much of heavy industry and utilities,

cement was not deemed to be the exclusive preserve of the State sector in the post-

independence development strategy. Cement was also the industry of choice of many

corporates diversifying away from the troubled traditional areas of jute and textiles.

Over the years, the share of the public sector in cement production

has declined. While the private sector (large companies) accounts for around 95% of the

total installed capacity, the share of public sector companies has declined from a level of

11% in financial year 1996 to around 4.4% in financial year 2006. The share in

production of the public sector companies is even lower at 1.2% in financial year 2006

as compared to 6.5% in financial year 1996.

Among cement public sector undertakings (PSUs), Cement

Corporation of India (CCI), a central PSU, is the leading player. It has 10 cement plants

with a total installed capacity of 3.85 mtpa at end financial year 20 06. Other PSU



companies manufacturing cement include State entities such as UP State Cement

Corporation (3 units with total capacity of 2.16 mtpa); and Tamil Nadu Cement (2 plants

with a total capacity of 0.9 mtpa). Given the extent of losses being incurred by most of

these plants, restructuring and revival through privatization appears imminent.

Accordingly, the Yerraguntla unit in Andhra Pradesh, which belonged to CCI, was taken

over by India Cements in FY1998. The three units of UP State Cement Corporation have

been closed since early 1998. These units were taken over by Jaypee Group in financial

year 2006.



CHAPTER 3

COMPANY PROFILE



COMPANY PROFILE The Travancore Cements Ltd is the only manufacture in the world producing

white cement from natural lime shells. The company was incorporated in 9th October

1946. The master brain behind the establishment of the plant was that of late Sir.C.P

Ramaswamy Iyer, the then dewan of Travancore,who had reali zed the vital role of

cement in the industrial development of Kerala. The company was promoted by M/s

Essel Limited, Bombay and the Technology tie up was made with M/s F.L.Smidth &

Co., Denmark.

The Travancore Cements Ltd is the only manufacturer, perhaps in the whole

World, producing white cement from a raw material other than conventional lime stone.

The raw material for cement is lime shell, which is dredged out from Vembanad Lake;

one of the back waters of Kerala. Lime shell is one of the purest sources of calcium

carbonate available for the cement manufacturer. As it contains magnesium oxide in

traces only the white cement out of lime shell is highly durable and superior in quality,

quick setting and stronger than white cement made from limestone.

In 1988 the company has set up its cement plant at Kakkanadu, near Cochin

with an installed capacity of 120 tones per annum on a single shift. As the production

was far below figure due to insufficient raw material supply, the plant was forced to

close down. The employees of this plant were absorbed by the parent company itself.

LOCATION Travancore cements Ltd is situated on the banks of Kodoor River and on the

side of state highway M.C Road 4km away from the Kottayam town in kerala, the

southern most state in India. The location of the plant is in such a way that is accessible

by both land and water. The beautiful locality in which the company is situated extends

over an area of 60 acres. The location facilitates the need of transportation of raw

material and finished goods.



PROMOTERS

The company was originally started under private management of M/s Essel Pvt.

Ltd. In 1975 government of Kerala took over the management of the company. The

director of the managing agency of the company at the time of its commencement was

Mr. T.S. Narayanaswamy. The factory was installed under the supervision of Mr. S.

Rudlinger. Now the government of Kerala is holding 51.33% of the equity share capital.

The pyramid group of the company is holding another 25% of the shares and the

remaining shares are held by General Public.

BRANCHES AND OFFICES

The company has its registered office and factory at Nattakam, Kottayam, and

Kerala. It has a regional office at Trivandrum apart from this it also has depots at

Bangalore, Coimbatore and Vijay Wada.

PRODUCTS

The products produced in TCL are:

Whi t e c emen t

Supe r She l cem (Cemen t Pa in t )

Wal l Pu t t y

WHITE CEMENT

Vembanad White Portland cement is manufactured from the nature’s gift of rare

rawmaterials which are Crystal Gypsum are the raw materials. Technology used F.L.

Smith & Company, Denmark, conforms I S 8042 E 1976 specification.

Outstanding Qualities Of Vembanad Brand White Cement

Lowest magnesia content and hence the most durable White cement.

Brillant whiteness.

High strength



Super soundness

Excellent properties

Ideal for manufacture of Cement Paints,Mosaic Tiles.

SUPER SHELCEM (CEMENT PAINT)

Super Shelcem is a technologically unique formulation with the most durable

“Vembanad” White cement. It contains a high percentage of light fast pigments, which

help colour retention.It contains more White cement than any other Cement Paint in the

country. SuperShelcem does not rub, flake or peel off and can be washed. Is un affected

by normal climate conditions and protects the wall against fungi growth. Ideal for

coating on concrete, asbestos, cement sheets, fibreboards or any Cement surface.

Depending on the surface coverage of 7 to 10 Sq.m./kg for two coats is achievable. It is

more easy to apply and hence save time and labour and is quick drying.

Properties

i . WATER PROOFING

Super Shelcem offers excellent protection for the walls against monsoon and fungus

growth.

ii . CAPACITY

Any previous deep shade made on the surface can be effectively hidden with a single

coat of super shelcem. The second coat completely overs the dark patches and stains on

the wall.

iii . COVERAGE

Super Shelcem covers greater area than any other cement paint. 1 kg. Covers 100 sq.

ft. for a single coat or 65 sq. ft. for two coats.

iv. ADHESION

Super shelcem can be applied on a wide variety of surface like cement plaster,

concrete, bricks works, stone and lime plastered surface.



WALL PUTTY

It is a recently launched product. The base of wall putty is time tested Vemband

brand White cement. The object of the Company is to offer Putty of the highest quality,

giving the smoothest finish, highest coverage and durability. It has more coverage than

any other dry wall putty in the market. Due to low MgO content of Vemband white

cement , the durability of Vemband wall putty is more.

OBJECTIVE OF THE COMPANY

The main objectives of the tcl are the following

To produce white cement paints using natural resources

To provide employment opportunities

To earn maximum profit

To provide training to apprentice

To make the company as the market leader.

QUALITY POLICY OF THE ORGANISATION

We at TCL are committed to continual improvement of the system enhancing

customer satisfaction by providing consistent quality products through the

implementation of Quality Management System.

VISION OF TCL In the fast paced global development as the barriers are withering away. India

need proper external synergy creations from the manufacturing sector for which TCL,

pioneer of the white cement manufacturing in the country , can play a remarkable role

and so is committed towards effective utilization of Man, Machine, Material and

Money (4 M’s)

MISSION OF TCL

Having a unique role in the Heavy industry sector of the country, TCL is

committed for catering the society towards the specific need expected by producing

quality product at a customer friendly price while keeping subsatianed growth of the

organization and total growth of the society.



ORGNISATION STRUCTURE


Board of DIrectors

Managing Director

GM(O)

CM(P&A)

GM(CS&F)

SrM(MM) CM(F&A)CM(M&E) CM(M&W)

SrM(LIO)

SrM(Mktg )

9

Med Officer

JCM(Engg)

DM(Mait)

DM(MM)

DM(Serv)

SecurityOfficer

SupdtSales

Jrm(Mktg)

JrmEngg

JrEX

ForemenElec

JRMM

Transsupdt

CivilSupvr

DMPer

JrmIR

JrmPer

JrmPrd

JrmCP

Foremen

JrmKiln

ChiefBurner

DMPrd

MHSUPR

Storessupdt

JrExe

Jrmcash

AMcash

JrM Fin

CTKPharmacist

JCMR&D

JRMR&D

JRMQC

Asstchemist

17


DIRECTORS

The responsibilities of the directors are:

Deciding the policies of the company

The preparation of annual accounts, the applicable accounting standards have

been followed

Accounting policies were applied consistently and the judgments and estimates

made, are reasonable and prudent so as to give a true and fair view of the affairs

of the company

Proper and sufficient care for the maintenance of adequate accounting records in

accordance with the provisions of the Act for safeguarding the assets of the

Company and for preventing and detecting fraud and other irregularities have

been taken

The annual accounts have been prepared on a going concern basis.

MANAGING DIRECTOR

The main responsibility of Managing Director is to implement the policies

decided by the Board of Directors .

GM(O)

All departments except financial department is under the control of General

Manager Operations. He is responsible to arrange all requirements of the the

departments under him.

GM (CS&F)

GM(CS&F) has got overall control of finance . He is also the Company

Seceretyand he is responsible for conduct of annual general body meeting



DIFFERENT PHASES OF DEVELOPMENT

Started production of Grey Cement in August 1949.

Started production White Cement in 1959

Grey Cement production stopped in 1976.

Diversified into Cement production in 1977.

Celebrated Silver Jubilee in 1972.

Became a Government Company in April 1989.

Celebrated Golden Jubilee in 1997.

Dry Cement Primer 'Shelprime' production started in January 2000.

Acrylic Emulsion Paint for exterior & Interior. Sheltex launched in April 2000

Started production of 'Vembanad' 43 grade OPC in September 2000.

ISO 9002 certification received for the Company during December 2000

Due to the lack of market demand Sheltex & Shelprime were stopped production

in 2000.

2008 Febu ra ry TCL s t a r t ed p roduc t i on o f Vembanad wa l l

pu t t y



FINANCIAL PERFORMANCE OF THE COMPANY

The financial performance of the company is unsound as the company is

running at a loss for past 8 years. The main reason for this is the rise in the price of

furnace oil which is used as thermal energy in the production process. As some changes

has made in the production process the company expect that it will earn a marginal

profit this year.

The turnover of the Company for the year 2006-2007 was Rs.2374.09 lakhs

as against turnover of Rs.1667.78 lakhs in the previous year, registering continues an

increase of Rs.7065.31 lakhs over the previous year. The income from the other sources

for the year 2006-2007 was Rs.42.27 lakhs as against Rs 25.12 lakhs for the previous

year. Income from other sources has gone up Rs.17.15 lakhs. As a result of substantial

inctease in turnover as also income from other sources the loss for the year 2006-2007

has come down to Rs.84.27 lakhs from loss of Rs.390.01 lakhs in the previous year. The

main reason for incurring loss during 2006-2007 despite substantial increase in turn over

was increased cost of furnace oil. The average cost of furnace oil has gone up by around

Rs.900/-per KL from an average cost of Rs.15386.11 in 2005-2006 to Rs.16284.19 for

2006-2007.The Company continues to exercise strict control on expenditure.

The company has received Rs.100 lakhs from Government of Kerala on

08-02-2008. The total financial assistance received from Government so far from 2005

onwards is Rs.487 lakhs.

As the Company has incurred loss, Directors have decided to pass over

dividend for the year 2006-2002.



The Profit & Loss A/c and balance sheet for the year 2007 is given below:

PROFIT &LOSS A/C FOR THE YEAR ENDED 31 MARCH 2007

Particulars 31-03-2007 RS

31-03-2006 Rs

I. INCOMESales

Less Excise Duty Net sales Other Sources

27,51,87,7703,77,78,668

23,74,09,10242,26,600

19,29,96,4462,62,18,570

16,67,77,87625,12,402

24,16,35,702 16,92,90,278

II. EXPENDITURERaw Materials Consumed(Increase)/Decrease in StockManufacturing and Other ExpenditureDepreciation

2,23,55,632(1,37,55,958)24,03,35,229

11,28,360

2,24,29,9521,51,57,541

17,16,70,53712,88,010

25,00,63,263 21,05,46,040

III. PROFIT/(LOSS) FOR THE YEAR BEFORE TAXATIONProvision for taxationProfit/ (Loss) after taxationAdd: Excess provision written backDoubtful AdvanceDoubtful DebtsDeferred Tax Liability

Profit /(Loss) for the yearAdd: Profit /(Loss) carried forward

(84,27,561)

(84,27,561)

(84,27,561)(8,70,16,247)

(4,12,55,762)

(4,12,55,762)5,38,003

17,790

16,98,756(3,90,01,213)(4,80,15,034)

Balance in General Reserve Adjusted(9,54,44,808)

6,98,29,629(8,70,16,247)

Balance Profit/(Loss) forwarded to Balance sheet

(2,56,14,179) (8,70,16,247)



BALANCE SHEET AS AT 31 MARCH 2007

Particulars 31-03 -2007 31-03-2008

I. SOURCES OF FUNDS1.SHAREHOLDERS’ FUND: a)Capital b)Reserves and Surplus2.LOAN FUNDS: a)Secured Loans b) Unsecured Loans3.GRANT:From Govt of Kerala

50,00067,04,359

1,26,00,0002,50,00,000

50,0007,65,33,988

1,26,00,000

TOTAL 4,93,04,359 9,41,33,988II. APPLICATION OF FUNDS

1.FIXED ASSETS a)Gross Block b)Less: Depreciation c)Net Block 2.INVESTMENTS 500 B class shares of Rs100/- each in Employees’ Co-operative Bank Ltd3.CURRENT ASSETS,LOANS &ADVANCES a)Inventories b)Sundry Debtors c)Cash & Bank balances d)Loans & Advances

LESS:CURRENT LIABILITIES AND PROVISIONS a)Liabilities b)Provisions

NET CURRENT ASSETS4.MISCELLANEOUS EXPENDITURE: Preliminary Expenses for:

8,37,79,2727,27,02,9091,10,76,363

50,000

6,12,43,53932,96,251

3,18,66,1181,56,33,697

11,20,39,605

8,66,56,2411,29,40,9009,95,97,141

1,24,42,464

66,353

8,32,79,0097,15,74,5491,17,04,460

50,000

4,98,13,45532,82,13289,41,045

2,06,35,9028,26,72,534

7,55,69,2661,18,61,3408,74,30606(47,58,072)

66,353



1) Modernisation Project2) Small Hydro Projects3) Ready Mix Concrete Project

5.PROFIT & LOSS ACCOUNT

20,00035,000121353

2,56,14,179

20,00035,000

8,70,16,247

TOTAL 4,93,04,359 9,41,33,988

FUTURE PLANS

The company has planned some diversification schemes which will be

implemented in the near future, which include proposal to insist setting up of Enamel

paints and textured coating under cooperative societies. There are proposals to start a

pocking unit, the venturing project for manufacturing Calcium nitrate and Dicalcium

phosphate, shifting of present technology to dry process technology, reinitialize the

production of Grey cement and the proposal to export white cement to Srilanka, Gulf,

South Africa and Mauritius. The company is at present having a bright future ahead.



CHAPTER 4DEPARTMENTAL DETAILS



PRODUCTION DEPARTMENT STRUCTURE OF THE PRODUCTION DEPARTMENT


CHIEF MANAGER

DEPUTY MANAGER

JUNIOR MANAGER

25

GENERAL MANAGER(O)

BURNERSCHARGE HANDS

SENIOR MACHINE OPERATOR

FOREMEN


FUNCTIONS OF PRODUCTION DEPARTMENT

To produce high quality products

To make optimum utilisation of minimum resources

To maintain the consistency in purity

Ensure production without any interruption

WHITE PORTLAND CEMENT

The machineries and equipment required for the manufacturing process is listed

in the order of operations.

1. DREDGING AND STORAGE OF LIME SHELLS

a) Dredger

b) Diluting pump

c) Gravel pump

d) Receiving tank

e) Rotary filter

f) Conveyors

g) Storage tanks (Silos)

2. PROCESSING OF LIME SHELL WHITE SAND AND WHITE CLAY

a) Water pump

b) Wash mill

c) Clay pump

d) Ball mill

e) Elevators

f) Lifting service

g) Slurry pump

h) Slurry silo

3. PROCESSING OF CLINKER

a) Rotary Kiln

b) High pressure screw pump

c) Hammer crusher

d) Shaking and bucket elevators

e) Clinker silos

4. PROCESSING OF CEMENT



a) Cement mills

b) Belt and screw conveyors

c) Cyclone separators

d) Dust collectors

e) Air compressors

f) Cement silos

g) Packing machines

RAW MATERIALS

Vembanad white cement is manufactured from nature’s gift of rare raw

materials which are unique in consistent purity. The company is using high quality raw

materials and net process in order to maintain quality of its products. The main raw

materials are lime shell, white sand, white clay and crystal gyps.

a) LIME SHELL

The main raw material lime shell is procured from under water deposits of

Vembanad Lake. Chemical analysis of lime shell reveals that almost 99% accounts for

calcium carbonate (CaCO3). While the presences of usual impurities like iron and

magnesium compounds are negligible in significance. Vembanad white cement has the

distinctive feature of being the only cement that is manufactured from lime shell.

b) WHITE CLAY

White clay or crude china clay is obtained from southern parts of Kerala,

particularly from Trivandrum District. These white clay deposits are known for their

purity and high ceramic properties. The milky white clay, which is in paste form, that go

in to manufacturing process of Vembanad white cement, is almost 85% pure Hydrated

Aluminium Silicate.

c) WHITE SAND

Earlier white sand was being bought from Chertala in Kerala . But now

since white sand is not available at Chertala it is bought from British India Clay

Company Trivandrum.

d) GYPSUM

Helps to restore the setting action of cement and enhances the initial

setting time of cement. It is bought from Tuicorn, Tamilnadu.



PRODUCTION PROCESS OF VEMBANAD WHITE

CEMENT

The basic cement making process of collecting raw materials, grinding them to

affine stage, blending them to a uniform composition and heating them to the paint of

sufficient fusion when the cement compounds are formed. Portland cement is the

product obtained by cooling and grinding the clinker those formed with gypsum to a fine

powder.

The production process can be mainly divides into three stages

1. Slurry preparation

2. Clinker making

3. Clinker grinding

The different processes under these main stages are:

1. Dredging

2. Unloading station

3. Wash mill

4. Shell sand grinding (Ball mill)

5. Slurry making (Raw mill)

6. Slurry section

7. Clinker making (Rotary Kiln)

8. Clinker grinding (Cement mill)

9. Packing and Dispatching

1.DREDGING

The main raw material for the production of the Vembanad white cement is

lime shell, which is an under water deposit in the Vembanad Lake. It is dredged and

brought to the company by means of power bargers. The company has two dredgers, one

hydraulic dredger and one mechanical dredger. The capacity of two dredgers may be

about 30 Tonnes per hour. The dredger can cut the lime shell around 40 feet maximum

depth. The dredger works on two powerful engines, a dredger pamper engine and an

auxiliary engine.

DREDGER OPERATION

The dredger is placed anywhere in the lake using spuds, one at a lowered

position while the other spud is at the raised position. The cutter is about 10 metres



length. It can cut the shell to a maximum of 30 feet from the water level. For cutting, the

cutter is placed downwards by using a winch when spud 1 is centered which is loosened

and the cutter moves to clock wise direction. Similarly, when the spud 2 is entered the

winch 2 is 100 send cutter moves in anti clockwise direction and cut the shell and after

primary washing, the shell is transferred into the barge.

ll. UNLOADING STATION

The shell brought by the barger from the lake is unloaded here. Shell in the

barger is diluted with about 60% water by means of a diluting pump for easiness of

sucking. A sucking pump draws water along with the shell to the receiving tank near the

rotary grill of the screening plant. The shell is then passed through the rotary grill and

waste materials are washed out during its rotation. Cleaned shell is either passed to the

belt conveyors through hoppers or stored outside. There are two rubber conveyors

(conveyor 1short and straight conveyor, conveyor 2 long and inclined) for conveying the

shell to the ball mill hopper or to the crane gantry.

III. WASH MILL

Before actually using for the process, the clay is mixed with water. This work is

done in a clay wash mill. Clay is put into the mill and about 65% water is also added

during the grinding. During the hammering action of the weights provided in the wash

mill, clay is made to watery and is pumped to a storage tank known as Silo. From Silo it

is taken for the processes when required.

IV. SHELL-SAND GRINDING (BALL MILL)

Slurry preparation is the fourth stage in the production process of white cement.

Slurry is a mixture of shell sand and clay with around 40% water. For slurry preparation

two grinding mills are used.

Roughing mill known as Ball mill.

Finishing mill known as Raw mill.

Ball mill is a cylindrical shell of welded metal plates. The shell along with the

required amount of white sand and water is fed to the ball mill by a rotating feed table.



When the mill rotates the materials are crushed down to small particles while it passes

through the balls. The materials coming out of the ball mill is diverted to a hammer

screen by means of a slurry elevator. Fine material comes out of the hammer screen and

is fed to the raw mill. The course materials return to the ball mill for further grinding.

V. SLURRY MAKING (RAW MILL)

The raw mill is a hollow cylindrical shell, the inside of which is lined with flint

blocks. The steel linings are avoided to reduce the contamination of slurry by iron. The

grinding media used id Flint pebbles. The mill is rotated by a motor at a constant speed

while passing through the mill, the fine materials are discharged from the ball mill and

the clay pumped from the clay silo are finally grounded and comes out as a party

material known as slurry which then flows to the slurry pit.

VI. SLURRY SECTION

Slurry discharged from the raw mill is stored in Silos by means of pumps. The

chemical composition of the slurry will be adjusted at this stage. There are three Silos

for storing the slurry. From these Silos slurry is pumped to the slurry basin. In the basin

slurry is constantly agitated with the compressed air and is stirred well. The slurry is

taken from this basin for burning in the kiln.

VII. CLINKER MAKING (ROTARY KILN)

Kiln is a cylindrical steel shell with refractory bricks lining, mounted at an angle

of 60 to base on roller supports, so that it can be rotated. The Kiln is having a length of

about 285 feet. Its diameter varies from 250 to300cm. In the Kiln there are three zones

called the drying zone, the calcinating zone and the burning zone. Fuel used in the Kiln

is burned to 1000c by an electric heater for better atomization. Air is sucked through the

coolers provided around the Kiln by the fan, which drives the Flue gas through the

chimney. There is a damper provided at the chimney for efficient operation and it

controls the air inlet to the Kiln. The collected slurry is injected at the upper end of the

Kiln. Hot gases or flames are forced through the lower end of the Kiln. The portion of

the Kiln nearer to the upper end is known as the drying zone and at this zone; the water

of he slurry is evaporated. The temperature of this zone is about 2200C. In the central



part of the Kiln, where the temperature is around 7500C-9000C, the slurry undergoes

decomposition to form quick lime and carbon dioxide and the latter escapes out. The

materials form small lumps known as nodules. (Calcinating zone)

In the lower part of the Kiln the temperature is between 1400 0Cto 15000C. Lime

and clay undergoes chemical interaction and fuses, yielding calcium aluminates and

silicates which then fuses together to form small hard dark greenish blue balls which are

known as clinkers. The size of the clinker varies from 3mm to 20mm and they are very

hot when they come out of the burning zone of the Kiln. Then, Diesel is applied through

a nozzle to remove impurities on clinker and to give colours to it. Cracking takes place

here.

Fe2O4 Fe2O3

To prevent reverse reaction quenching is done. Oxygen released during the

cracking process reacts with hydrogen and becomes steam. There is a provision to cool

down hot clinkers. The clinkers are passed through the coolers connected to the Kilns

periphery. The air entering through the cooler exchange the heat and thus the clinker

gets cooled and at the sane time air gets preheated. Cooled clinkers are having a

temperature of 950C and are collected in containers of suitable size.

CHEMISTRY OF THE PROCESS

In the upper part of the kiln, where the temperature is around 400 0C, most of the

slurry gets evaporated (Drying zone)

In the central part of the kiln, where the temperature is around 10000C, slurry

undergoes decomposition to form quick lime and carbon dioxide and the latter escapes

out.

CaCO3 CaO+CO2

In the lower part of the kiln the temperature is between 15000C to 17000C. Here

lime any clay nodules undergo chemical interaction or fusion, yielding calcium

aluminates and silicates (clinkering zone).

2CaO+SiO2 Ca2SiO4 Dicalcium silicate

3CaO+SiO2 Ca3SiOS5 Tricalcium Silicate

3CaO+Al2O3 Ca3Al+2O6 Tricalcium aluminate

4CaO+Al2O3+Fe2O3 Ca3Al+2O6 Tricalcium aluminate

4Ca0+Al2O3+Fe2O3 Ca4Al2Fe2O10 Tricalcium Aluminoferrite



VIII. CLINKER GRINDING (CEMENT MILL)

The clinker as obtained from rotary kiln is carried by conveyors into the cement

mill. There are three cement mills A,B, C with clinker grinding capacity of 60

Tonnes ,50 Tonnes, 50 Tonnes respectively.. The mills B and C are identical in nature.

During grinding, small quantity of about3% to4% Gypsum is added. The Gypsum

controls the initial setting time of cement. If Gypsum is not added, the cement would sit

as water is added. The Gypsum acts as retarder and it delays the setting action of

cement. It thus permits cement to be mixed with aggregates and to be placed in position.

The cement coming out of the mill is conveyed to the claufies by means of bucket

elevator. In the separator, coarse particles are separated and they flow to the mill while

fine particles flow to the Flaxo pump, which is operated by compressed air. Using Flaxo

pump cement is transferred to the cement Silo located at the packing house.

I. PACKING AND DISPATCHING

The white cement stored in Silos is packed in paper bags in the packing house.

Compressed air is used for the free flow of the cement from the Silo and hopper located

above the packing machine. When the bag is filled with 50Kg material discharges from

the spout is automatically transferred to truck through a fixed point belt conveyor and a

movable belt conveyor. The filled bags fall down from the spout to the wire net

conveyor and are transferred to truck through a fixed point belt conveyor and a movable

belt conveyor.

CEMENT PAINT DEPARTMENT

Paint is a surface coating which decorates and protects the surface on which it

is applied. Paint is a mixture of four elements they are:

1. Solvents

2. Binders

3. Pigments

4. Additives

The total paint market is broadly categorized into four segments.

1. Architectural finish or decorative paints

2. Industrial finish-general industrial sector automobile sector



3. Heavy duty coatings

4. Marine paints

Decorative paints are the largest market segment and constitute around 75% of

the market share. Super Shelcem is self curing cement paint manufactured by the TCL.

It is an inmate mixture of white Portland cement, water proofing compounds as oxide

extender, non fading oxide pigments hardening agent and fungicide. Super Shelcem

unlike other cement paints does not require water curing after first and second coats.

Unlike other paints, metal primer is not required when using this paint. Only initial

willing of the surface is necessary. This makes Super Shelcem ideal for exteriors of

multi storied buildings and sky scrappers. For interiors too super Shelcem id ideal. It

carries ISI marks and is available in a wide range of colours -43 shades to be precise.

PRODUCTION PROCESS

Lime shell Clay

Dredging Clay unloading

Barger Wash mill

Rotary filter Clay silo

Sand silo Clay pit

Raw mill

Slurry pit

Slurry silo

Correction pit

Slurry basin

Slurry feeder

Rotary kiln

Hammer crusher



Clinker silo Cement

Gypsum Cement Mill Fluxo pump Silo

White Cement

PRODUCTION AND DESPATCH The shell production, clinker production, and cement production and cement

despatch during the past three years were as follows:

Item 2006-2007Mts

2005-2006Mts

2004-2005Mts

Shell 26750 12945 28670

Clinker 22528 11808 22901

White cement 21474 15134 23965

White cement dispatch 21425 15393 23821

RESPONSIBILITY OF KEY PERSONS

GENERAL MANAGER OPERATIONS

Has overall control on production department Has to report to MD Verification of stock of raw materials Make arrangements for repairs & maintence by the respective department

CHIEF MANAGER

Maintain necessary stock of raw material Purchase machinery equipment & grinding media which may become necessary.

Jr. MANAGER JR. Manager has to assist chief manager



FUTURE PLAN OF PRODUCTION DEPARTMENT

To change the production technology from WET process to DRY process.

PERSONNEL DEPARTMENT

STRUCTURE OF THE PERSONNEL DEPARTMENT



FUNCTIONS OF PERSONNEL DEPARTMENT

To maintain good relationship between the employees

To look into the welfare of the employees

To maintain leave register


GENERAL MANAGER(O)

CHIEF MANAGER(Mktg&Per.)

DEPUTY MANAGER

Jr.MANAGER(IR)

Jr. MANAGERPer. In Charge

OFFICE ASSISTANTS

TYPIST

PEON

36


Attendance making

Overtime confirmation

It is the department that is connected to other departments in TCL. This

department is headed by Joint General Manager. Under him Joint Chief Manager

followed by Junior Executive and Office Assistants. This department does the

recruitment and selection of the personnel. Another important function of the personnel

department is to look into the welfare of its employees. Time office comes under this

department. The function of the time office is to maintain leave register, attendance

making, over time confirmation etc. The above data is forwarded to the accounts

department for accounting the wages of the employees.

The employees of the company are classified into Three categories. They are:

1. Officers.

2. Staff.

3. Workers.

1. OFFICERS

The Officers of TCLl are further classified into five. They are:

i) General Manager grade.

ii) Manager grade.

iii) Special grade.

iv) Class one grade.

v) Class two grade.

2. STAFF

People working in the office, security and senior employee in the plant comes

under the staff category. The grade of staffs varies from 1 to 7. 1 being the lowest grade

ahend 7 being the highest grade.

3. WORKERS

Workers in TCL are classified into

i) Permanent.



ii) Probation.

iii) Temporary.

iv) Casual.

v) Apprentice.

The grades of workers vary from i) to v). i) being the lowest grade and v) being

the highest grade.

TIMING

The office time is from 9:00am to 5:00pm on all working days from Monday to Friday.

On Saturdays Office time is till 1:00pm and the factory is working on shift basis.

1) 3 continuous shifts of 5 hours each.

2) 2 special shifts of 8 hours each.

3) Special shifts for special work of 8 hours.

4) A general shift of 8 hours.

There are 3 shifts in the factory.

1st shift: 12 midnight to 8.00 pm.

2nd shift: 8.00 am to 4.00 pm

3rd shift: 4.00 pm to 12 midnight

MANPOWER PLANNING

Manpower planning is a key economic resource of an organisation. Manpower

planning isw a kind of checking weather the people at the right place for things for

which they are economically useful. It enables the management to adopt suitable

strategies for each situation.

Improper manpower planning results in delays in executing new projects and

expansion programmes. Manpower planning includes a series of activities consisting of

the following:

1. Forecasting

2. Anticipating manpower requirements

3. Manpower audit

4. Planning



Proper manpower planning is done at TCL to ensure the right number and

proper utility of manpower

INDUSTRIAL RELATIONS

TCL maintains a good working relation between management and employees.

The work opportunities for the company personnel are developed and maintained in the

best interest of the company and its employees.

WORK CULTURE

Culture of a society or organisation comprises the core values, norms, beliefs

and attributes that affect the behaviour of people. An organisation is a replica of a

society. The culture of an organisation depends upon various policies and practices such

as how work is organised and how people relate to each other within the organisation

and outside it. TCL is maintaining a good and harmonious relationship between

employees and customers.

RECRUITMENT AND SELECTION

WORKERS

The workers are selected through PSC test and physical test. Every worker is

liable to be transferred from one department to another and one job to another according

to the experience of work in the factory.

OFFICE STAFF

Recruitment of office staff is done through direct application and through

employment exchange. Selection is mainly based on written test and interview. But it is

also done accordig to the discretion of management. Selected persons will have to

undergo training, which is usually six months.

MANAGERIAL LEVEL



Recruitment for managerial level is done through direct application and through

employment exchange. Selection is mainly based on written test and interview. Selected

persons will have to undergo training for more than one year.

TRADE UNION

The recognised trade unions in the company are :

1. The Travancore Cement Workers Union AITUC

2. The Kerala Cement Labourers Union CITU

3. The Kottayam Cement Employees Union INTUC

4. The Kottayam Cement Employees Congress

WORKING CONDITIONS

Proper working conditions are maintained in the company. Facilities like

bathrooms, toilets are provided at all the plants and offices. Rest rooms and seating

facilities are provided.

MEDICAL REIMBURSEMENT

One month salary (Basic + D.A.) for officers and half month salary (Basic +

D.A.) for staff workers who are out from ESI scheme.

COMPANY SCHOLARSHIP

Company is providing scholarship to children of all the employees in the

company.

For S.S.L.C, Plus Two, Degree and Diploma.

Rs. 750/- for first rank.

Rs. 500/- for second rank.

EDUCATIONAL ALLOWANCE

The company provides this facility for the children of permanent employees.

They are getting an amount of Rs. 300 a month.



SPECIAL ADVANCE

For medical treatment [Upto a maximum of Rs. 15000]

For marriage expense [upto a maximum of Rs. 25000]

TWO WHEELER / CYCLE LOAN : To all employees

CAR / COMPUTER LOAN : For officers only

FACTORY DAY COMPLIMENT : Every year

TRAINING AND DEVELOPMENT There are both internal and external training for workers and employees, and

the HRD centre under the supervision of the personnel deparrtment, it is conducted. Job

rotation is allowed only for officers. Conference talks, workshops etc. are conducted as a

part of training and development.

PROMOTION

Promotion from a lower grade to higher grade will be given in accordance

with efficiency and seniority of the person, subject to the vacancy position.

WELFARE FACILITIES PROVIDED BY THE COMPANY

There were several welfare measures provided by the company. Now TCL is

running under huge loss. So the company is not able to provide the benefits to the

employees as in the earlier years.

They were provided with the following benefits:

1. Uniform

2. Footwear allowance

3. Umbrella

4. Raincoat

5. Washing soap & toilet soap

6. Turkey towel

7. Two wheeler / Cycle loan

8. Car/ computer loan



The benefits provided to the employees even the company is facing loss are:

CANTEEN

A fair price canteen is operating at the premises. The employees are given

Rs. 25 per day of attendance as canteen allowance. Rs. 750 is the maximum allowance

given per month.

DEATH BENEFIT

Rs. 5000 will be given to the dependent of the deceased employee to meet the

expenses in connection with funeral.

TRANSPORTATION

Free transportation facility is provided to employees for coming and returning

after duty and for their children and for attending education institutions in and around

Kottayam.

COMPANY’S PRODUCT AT CONCESSIONAL RATE

Super Shelcem paint are sold to employees at fatory gate price.

QUARTER‘S FACILITY

A limited number of employees are provided with quarter’s facility with free

electicity and water. Very nominal rents are charged.

RECREATION FACILITY

Recreation facility for indoor games like shuttle, badminton, carroms etc. are

provided. Reading room facility is also provided with newspaper and periodicals;

television is also provided with cable faility.

WELFARE FUND SUBSCRIPTION

The company has a welfare fund scheme under which an employee has to

contribute Rs. 20 and the company contributes at the rate of Rs. 10 for each member per

month.



TRAINING FACILITY FOR EMPLOYEES’ CHILDREN

Employees’ childre with ITI / diploma / professional degree, are given training

facility at free of cost. (as unpaid apprentice)

SALARY & WAGES

Salary and wages, paid to the employees are determined on the basis of an

agreement between CMI and Trade Union. In TCL, pay revision is done in every 4

years. The salary is fixed for officers & staff according to KSR rules. And the provision

of Cement Manufacturers Association (CMA) determine workers’ wages.

SCALE OF PAY

The Cement Manufacturers Association (CMA) determines the wages and salaries of all

cement factoies in India. Since there is fixed pay structure for every grade of employees,

management can develop a coordinated pay system without having to determine a

separate pay rate for each job in the organisation. All the jobs within a grade have the

same range of pay regardless of points.

HOUSE RENT ALLOWANCE

The employees who are not provided with quarters are given allowances at

10% of their basic pay.

EMPLOYEE PROVIDENT FUND

The company deducts 12 % of basic pay and dearness allowance of the

employee as monthly contribution. The company also contributes an equal amount.

FAMILY PENSION SCHEME

A portion of the provident fund is reserved for the family pension scheme.

This is kept for giving to the employees after their retirement on monthly basis.

ESI

The employees having basic pay below Rs. 7500 are able to get the benefit of

ESI.



GRATUITY

Gratuity is also given to the employees.

And it is calculated as: Gratuity = (BP + DA) * 15/26 * total years of service

LEAVE PATTERN

Pre l i vage S ick Casua l

S t a f f & manage r 30 12 14

Worke r s 16 12 8

PROVISIONS REGARDING HEALTH OF THE

EMPLOYEES

a. Cleanliness is maintained.

b. Wastes and effluents are disposed properly.

c. Proper ventilation and temperature is maintained.

d. Masks are provided for protection against dust.

e. Cold water facilities are provided.

f. Proper lighting is maintained.

PERSONNEL RECORDS

TCL keeps records about each and every employee, from the date of joining till

his separation from the company. It also includes details of salaries or wages,transfers

and other details related to the job.

RESPONSIBILITIES OF KEY PERSONS IN PERSONNEL

DEPARTMENT

GENERAL MANAGER(O)



General Manager(O) has an overall control in Personnel Department.

CHIEF MANAGER(MKTG &PERSONNEL)

Chief Manager (Mktg&personnel) is the signing authority in personnel

department.

DEPUTY MANAGER

Deputy manager is responsible for the preparation &verification of documents

forwared to chief manager

Jr. MANAGER(IR)

Jr. Manager (IR) has the control of human resources section.

Jr. MANAGER (PERSONNEL IN CHARGE)

Jr. Manager (Personnel In Charge) has to prepare letters relating to the Personnel

Department. Jr. M has also the responsibility relating Employees’ Welfare Fund

activities.

FUTURE PLAN OF PERSONNEL DEPARTMENT

Conduct SWOT analysis of each employee and the company and to assign the

responsibility which is suited to each employee

LIST OF APPRENTICES



ALLOWANCES TO EMPLOYEES


Type of Apprenticeship

I

II

III

Graduate Apprentice (Engineering degree)

1. Electrical Engineering

2. Mechanical Engineering

3. Chemical Engineering

Technical Apprentice (Engineering Diploma)

1. Automobile

2. Mechanical

3. Chemical

4. Civil

5. Electrical

6. Commercial Practice

Trade Apprentice

1. Electrician

2. Fitter

3. Welder

4. Turner

5. Mechanic Motor Vehicle

6. Carpenter

7. Forger & Head treater

8. Plumber

9. Mechanic Diesel

46


GRADE DA% TA HRA EA CA LTA PA

E Ni l 30 125 300 515 400 50

D 2½ 30 125 300 515 400 50

C 5 33 125 300 515 400 50

B 5 33 135 300 515 400 50

A 5 36 135 300 515 400 50

I 5 30 125 300 515 400 50

I I 5 33 125 300 515 400 50

I I I 5 33 135 300 515 400 50

IV 5 36 135 300 515 400 50

V 5 36 145 300 515 400 50

VI 5 38 145 300 515 400 50

VI I 5 38 150 300 515 400 50

DA—Dearnes s A l lowance

TA—Trave l i ng A l lowance

HRA—House r en t A l lowance

EA—Educa t i on A l lowance (110 + 190 = 300 /mon th )

CA—Conveyance A l lowance (450 + 100 + 125 = 575 / mon th )

LTA—Leave T rave l A l lowance (205 + 135 = 400 / mon th )

PA—Per iod i ca l A l lowance

EMPLOYEES’ STRENGTH OF TCL AS ON 01.01.2008

SLNO NAME OF

DEPARTMENT

STAFF OPERATIVES



1 Dredege r 10 71

2 Wate r t r anspo r t 3 22

3 Runn ing p l an t 15 47

4 Pack ing house 6 13

5 Workshop 15 64

6 Of f i ce 47

7 Marke t i ng & sa l e s 19

8 Lab 3 11

9 Gene ra l s t o r e s 3 5

10 T ime o f f i c e 6

11 C iv i l Engg 1

12 E lec t r i c a l Engg 8 15

13 Gene ra l t r anspo r t 15 4

14 Watch & ward 17

15 Camp & san i t a t i on 3 6

16 Cemen t pa in t un i t s 9 11

17 Medc i a l A id 1

18 Mate r i a l hand l i ng 3 26

TOTAL 167 312

Tota l s ta f f 167

Tota l opera t ive s 312

Of f i cer s 26

GRAND TOTAL 505

FINANCE DEPARTMENTSTRUCTURE OF THE FINANCE DEPARTMENT



FUNCTIONS OF FINANCE DEPARTMENT

Financial forecasting and planning

Acquisition of funds

Investment of funds


GENERAL MANAGER(F)

CHIEF MANAGER

ASSISTANT MANAGER

Jr.MANAGER

ASSISTANT SUPERIENDENT

OFFICE ASSISTANT

49


Maintaining proper liquidity

Assigning the Chief Accounts officer and others

Accounting of all receipts and payments, cash at bank, sales etc.

Preparation of annual accounts and other periodical report and statements

Checking of wages and salaries

Regular payments of statutory dues like Provident Fund, Sales tax etc.

Furnishing necessary records relating to finance cash to Managing Director or

Chief Accounts Officer.

Financial Management is that specialised functions of general

management which is related to the procurement of finance and its effective

initialisation for the achievement of common goal of the organisation. It deals with each

and every aspect of financial activity in the business. It includes planning and control of

financial resources. It is also concerned with finding out various sources for raising

capital for the firm. The source must be suitable and economical for the needs of the

business. The most appropriate use of such funds also form a part of Financial

Management.

Finance is indispensable to facilitate efficient and effective operation

of business enterprise. In this context, effective financial management holds key to

success in todays highly competitive world, modern financial managers are assigned five

roles:

1. Planning of funds

2. Raising of funds

3. Allocation of funds

4. Allocation of earnings

5. Control of funds

The finance department consists of Chief Manager, Junior manager

and Office Assistants. The accounts of Tcl are controlled through the budget presented

and passed by the Annual General Meeting of the TCL. There are mainly three sectors

of finance department of TCL. They are

1. Accounts Section

2. Finance Section

3. Cash Section



1. ACCOUNTS SECTION

The most important task done by accounts section is the recording of

day to day accounts. Routine accounting functions like sales tax payment, receipts and

payment of cash, cheques etc. come under the preview of the accounts section.The

employee payroll function is also undertaken by the accounts section of the finance

department. It is the duty of this department to prepare Trial Balance, Profit & Loss A/c

and Balance Sheet and send it to the top level authorities for audit and for other decision

making purpose.

2. FINANCE SECTION

Finance section is mainly concerned with the maintenance of

accounts. The various financial statements are kept in the computer as well as in the

manual form.

3. CASH SECTION

The cash section is concerned with the disbursement of cash.

DUTIES OF FINANCE DEPARTMENTi. Overall financial control

ii. Monitory decision amking in consultation with Managing director

iii. Finalization of accounts

iv. Budget preparation

v. Control overall matters relating finance in the organisation

The accounts and finance departments have to ensure that the salaries due to

the employees are paid in time. The department is also concerned with the preparation of

budget and budgetory controlof the concern. The department has to ensure that all the

entries are properly posted in the books of accounts.

The main accounts that are kept by the accounts department:

i. Cash book

ii. General ledger



SCOPE OF FINANCIAL MANAGEMENT

It can be summarised as follows:

a) ESTIMATING FINANCIAL REQUIREMENTS

The first task of a Finance Manager is to estimate short term and long term financial

requirements of his business. For this purpose, he will prepare a financial plan for the

present as well as for the future.The amount required for purchasing fixed assets as well

as needs of funds for working capital have to be ascertained. The estimations should be

based on sound financial principles so that neither there are inadequate nor excess funds

with the concern. The inadequacy of funds will adversely affect the day to day working

of the concern whereas excess funds may tempt the management to indulge in

extravagant spending for speculative activities.

b) DECIDING CAPITAL STRUCTURE

Capital Structure refers to the kind and proportion of different securities for

raising of funds. After deciding about the quantum of funds required, it should be

decided which type of securities should be raised. It may be to arise finance through

long term debts Even here if gestation period is longer, the share capital may be most

suitable. Long term funds should be employed to finance working capital. Entirely

depending upon over drafts and cash credits for meeting working capital needs may not

be suitable. A decision about various sources of fund should be linked to the cost of

raising funds. If cost of raising funds is very high, then such sources may not be useful

for long. A decision about the kind of securities to be employed and then proportion in

which these should be used is an important decision which influence the short term and

long term financial planning of the enterprise.

c) SELECTING A SOURCE OF FINANCE

After preparing a capital structure, an appropriate source fo finance is selected. Various

souces from which finance may be raised include share capital, debentures, financial

institutions, commercial banks, public deposits etc. If finances are needed for shorter

period, then banks, public deposits and financial institutions may be appropriate, on the

other hand, if long term finances are required, then share capital and debentures may be

useful. If the concern doesn’t want to tie down assets as securities, then public deposits

may be the suitable source. If the management doesn’t want to dilute ownership, the



debentures should be issued in prefernce to shares. The need, purpose, object and cost

involved, may be the factors influencing the selection of a suitable source of financing.

d) SELECTING A PATTERN OF INVESTMENT

When funds have been purchased, then decision about investment pattern is to be taken.

The selection of an investment pattern is related to use of funds. The funds with have to

be spent first on fixed assets and then an appropriate portion will be retained for working

capital. While selecting a plant & machinery, even different categories of them may be

available. . the decision making techniques such as capital budgeting, opportunity cost

analysis etc. may be applied in making decision about capital expenditures.While

spending on various assets, the principles of safety, profitability and liquidity should not

be ignored. A balance should be struck even in these principles. One may not like to

invest on a project, which may be risky, even though there may be more profits.

e) PROPER CASH MANAGEMENT

Cash management is aso an important task of finance manager. He has to assess various

needs of the company at different times. He has to make arrangements for cash. Cash

may be required a) to purchase raw material b) to make payment to creditors c) to meet

wage bills d) to meet day to day expenses.

The usual source of cash may be a) cash sales b) collection of debts c) short term

arrangement with banks etc. The cash management should be such that neither there is a

shortage of it nor it is idle. Any shortage of cash will damage the creditworthiness of the

enterprise. The idle cash with the business will mean that it is not properly used. Cash

flow statement is regularly prepared so that one is able to find out various sources and

applications. All these information will help in efficient management of cash.

ACCOUNTING POLICIES

The accounts of TCL are prepared in accordance with the accounting policies accepted

in India and in line with the relevant laws as well as the guidelines prescribed by the

Department of Company Affairs and The Institute of Chartered Accountants of India

and in accordance with section 211 (3c) of the Companies Act 1956.



i SYSTEM OF ACCOUNTING

The company adopts the accrual basis in the preparation of accounts.

ii FIXED ASSETS

Fixed assets are capitalized at cost inclusive of expenses. Depreciation is provided

on all fixed assets except machinery for erection and free hold land, on reducing

balance method (written down value) in terms of sec. 350 of Companies Act, 1956 at the

rates prescribed under schedule XIV of the said Act.

iii INVENTORIES

Raw materials, stores and spares and work in progress are valued at cost. Finished

goods have been valued at cost or market price whichever is less and doesn’t include

excise duty, except in case of stock at depots.

iv SALES

Sales are inclusive of excise duty and sales tax. Sales include the value of white

cement transferred for the manufacturing of cement paint.

v RETIREMENT BENEFITS

Gratuity, leave encashment, provident fund are the benefits provided in the

company.

CAPITAL STRUCTURE

No long term loan was availed by the company and hence the debt equity ratio is nil.

RESERVES AND SURPLUS

The company is operating on the previous years’ surplus amount.

RESPONSIBILITIES OF KEY PERSONS IN FINANCE

DEPARTMENT



GENERAL MANAGER(F)

General manager(F) has control on overall financial matters. He has to control

expenditure. GM has to arrange the sources of finance and its proper distribution.

General Manager is the displinary authority of all the staff working under him.

CHIEF MANAGER

Chief Manager controls day to day affairs in connection with finance and

accounts. CM has to distribute the duties among the staff under him.

ASSISTANT MANAGER

Assistant Manager has to assist Chief Manager. Assistant Manager has to

control daily receipts and payments. AM has to attend all the papers submitted to him by

the subordinates who are directed to report.

Jr. MANAGER

Jr. Manager has to prepare all statements like budget, balance sheet, profit &

loss A/c, cost data. Jr. M has to attend all the papers submitted to him by the

subordinates who are directed to report.

FUTURE PLAN OF FINANCE DEPARTMENT

This department is planning to have full computerization.

MARKETING DEPARTMENT



STRUCTURE OF MARKETING DEPARTMENT

FUNCTIONS OF MARKETING DEPARTMENT

To identify the needs and wants of the consumers

To meet the demand of the consumers

Developing new better product

Successful distribution of the products

Improving the quality of products or services


GENERAL MANAGER(O)

CHIEF MANAGER(MNP)

SENIOR MANAGER(Mkt)

Jr.MANAGER(Sales)

Jr.MANAGER(Mktg &Sales)

REPRESENTATIVES

56


INTRODUCTION

Marketing as a field of study has become almost as broad as business itself. In

the early days marketing concepts was considered important for consumer products but

recently the trends have changed. Today marketing is an important part of any industry.

Marketing is defined as the process of identifying the needs and wants of

consumer and producing goods and services to satisfy their needs and wants.

MARKETING DISTRIBUTION CHANNELSCompany Depots Stockists Dealers Customers

NUMBER OF STOCKISTS

There are 40 stokist to supply the products in credit .

MARKETING ACTIVITIES TCL has a well established marketing department. There is an efficient

salesforce which is under the Marketing Manager. The whole system comes under the

General Manager. TCL has got 14 sales representatives throughout Kerala.

PRODUCTS

The company is producing four products. Two products were launched in the year

2000 and has got good marketing share.

1. Vembanad White Cement

2. Super Shelcem Cement Paint

3. Vembanad wall putty

The first two products are established and they have good demand in the market.

Vembanad White Cement has 40% market share and Super Shelcem Cement Paint has

30% market share in Kerala market. Vembanad White Cement has also market in Tamil

Nadu. Sales representatives go around the state for collecting the order other than the

networks. TCL supply its products to various government agencies like PWD, FACT,

public sector companies etc. at special rates.



PRICING OF THE PRODUCT

Item Qty(kg) Price

Vembanad White cement (Kerala) 50 866.75

Vembanad White cement (Outside Kerala) 50 797.00

Vembanad White cement 5 118.50

Vembanad White cement 1 24.10

Super shelcem cement paint 1 34.40




Vembanad wall putty 5 180

Vembanad wall putty 20 619

REASONS FOR HIGH PRICE The production process of TCL is very old and it is known as WET process and

is very expensive. This is the only company which is using this old process. The other

companies are using DRY process. This is comparatively less expensive. So the other

companies can reduce price. Another reason is the raw materials particularly lime shell

and white clay is scarce. So these products are priced very high.

ANALYSIS OF ENVIRONMENT

Marketing environment is constantly presenting new threats and opportunities

and successful companies continuously monitor and adapt to that environment. TCL is

facing various threats like increased energy cost, pollution, changing role of

Government etc.

RESEARCH & DEVELOPMENT

The company for improving the quality of product takes up much research. The

company doesn’t need many strategies to study in the market as its product is of great

demand and the company has a good percentage of market shares.

It is the responsibility of the marketing to conduct various programmers to

improve the user’s awareness about the company’s product.



To conduct study classes for workers and users

To organize exhibitions

To conduct educational tour

MARKETING RESEARCH

TCL is not conducting any marketing research. Using project students,

company gets feedback from the customers. Thus necessary steps are taken to cure the

complaints.

SEGMENTING, TARGETING & POSITIONING

TCL identified the segments for the white cements as cement paint

manufacturing, Tile manufacturing, Manufacturers of Terrazzo flooring, Mosaic Tiles,

Primer coat, PWD for road making, pointing brick works.

The target customers of Vembanad White Cement are tile manufacturers. The

main customers Scorpio tiles Manufacturers, Melathil Tile manufacturers, Ultra tile

manufacturers. Even though the tile manufacturers are the target customers, Vembanad

white cement is consumed mostly by TCL itself for the production of cement paint.

Positioning the act of designing the company’s offering and image to occupy a

distinctive place in the mind of the target market, is done by Vembanad White Cement

as a quality product.

MARKETING CHANNELS AND PRACTICES

WHITE CEMENT

TCL has got six sales representatives throughout Kerala. TCL is having sales

officers and godowns at Bangalore, Coimbatotre, Calcutta and Delhi. Transport is

through trucks and railway wagons to distant places. Regional office is situated at

Trivandrum.

MARKET SHARE

Today out of the total production of white cement in India, the market share of

TCL is 40% in Kerala .



SUPER SHELCEM PAINT

Shelcem paints are marketed in powder form. The sales representatives take

orders from the dealers and the company supplies it directly to the stockists of that

respective area, who in turn supplies it to the dealer.

MARKET SHARE

Cement paint market is classified into two sectors such as organised and

unorganised sectors. The total market share of organised and unorganised sector is 15%.

In the unorganised sector, Super Shelcem is the market leader.

SALES PROMOTION

TCL has an advertisement budget of Rs. 50 lakhs per annum. Since the amount

is too small, the company is advertising at a low level. Other promotional activities

include, conducting dealers’ meeting once in two years. In addition to these, the

company offers various incentive schemes for its dealers according to their sales

performance.

Due to the very low advertisement budget, company doesn’t engage in any large

scale type of advertisement activities. The company occassionally engages in

advertisement through newspapers, magazines etc.The main modes of advertisement are

display boards, that are positioned where they get maximum attention.They also used

Asianet Cable Vision, wall painting etc.

COMPETITIONS The company is facing tough competition from the white cement from internal

manufacturers and also from imported white cement. JK White, Birla, RKC etc. are the

major competitors in the white cement sector. In the cement paint sector, there are about

14 brands to compete with Super Shelcem. The major competitors are Durocem,

Snowcem etc. The companies new product Sheltex Acrylic Emulsion Paint has only 5%

market share and facing competition from majors like Apex, Excel etc.

CONDITIONS OF SALES



The sale is at the ex-factory Kottayam. The company is not responsible for any

levies

Every care is taken in packing and their responsibility ceases once the company

sells it.

Goods once sold and dispatched will not be taken back.

All disputes under the invoice will be settled in court having jurisdiction at

Kottayam.

Buyer man in sure the goods at their own risk account against transmit risk.

RESPONSIBILITIES OF KEY PERSONS IN

MARKETING DEPARTMENT

GENERAL MANAGER(O)

General manager(O) has overall control of marketing of all products. GM

has to suggest proposal of policy decision regarding marketing.

SENIOR MANAGER

Senior manager has the administration work of marketing. SM has to

supervise junior manager and the representatives at field. SM has the responsibility to

look into statutory matters regarding marketing. SM has to initate proposals regarding

advertising, sales promotion, appointment of workers.

FUTURE PLANS OF MARKETING DEPARTMENT

The future plan of this department is to establish the product wall

putty



PURCHASE DEPARTMENT

STRUCTURE OF THE PURCHASE DEPARTMENT

FUNCTIONS OF PURCHASE DEPARTMENT To determine the type of raw materials to purchase

To purchase good quality raw materials

To purchase raw materials at low cost

To formulate purchasing policies

Purchase department is the department which decides the type of raw materials

to purchase. Highly paid officials with specialised knowledge are included in this

department.

ADVANTAGES OF PURCHASE DEPARTMENT IN TCL


GENERAL MANAGER (O)

CHIEF MANAGER

Jr. MANAGER

Jr. EXECUTIVE MANAGER

OFFICE ASSISTANTS

62


1. Because of centralized purchasing of materials, favourable terms like trade

discount or economic in transportation cost can be obtained, because quantity

will be large.

2. The purchase department is staffed with highly paid officials who are experts in

the art of purchasing the material. Specialized knowledge and skill of these

persons can be utilized.

3. All records with regard to purchase department is kept under the supervision of

the purchase officer.

4. This department helps in achieving uniform purchasing policies, practices and

procedures.

5. It avoids duplication of efforts and is helpful in achieving standardized products.

VENDOR SELECTION

The TCL has a main list of suppliers for all items it have to purchase. The

company invites tenders through advertisements in the newspapers.The suppliers give

quotations and after a detailed study of the concerned department, the supplier should be

selected and the order is placing.

VENDOR RATING A vendor is rated according to his monopoly in the market, brand equity of the

products, his established dealings with other reputed organizations. There is a vendor

evaluation committee which evaluates the vendors. The committee consists of officers

from concerning finance and material departments. Vendor who is rated below 50% will

be removed from the lists. Vendors rated between 50% & 75% are advised to improve

their quality.

VENDOR RE-EVALUATION RATING

The suppliers of raw material who are re-evaluated periodically by the

company.

i Vendor supplying all raw materials for white cement and cement paint.

ii Packing material

iii Critical spares and machinery



Vendor rating is done by the composite weighted average calculated by the

following formula:

R = A + B; where A is quality rating

” B is delivery rating

FUNCTIONS OF PURCHASE DEPARTMENT IN TCL

Placing order

Inviting quotations

Correspondents

To perform the functions effectively, the purchasing department has to follow

the following procedure.

a. PURCHASE REQUISITIONS

The purchase officer does not initiate any action for purchasing of materials on

his own record. With the help of purchase requisitions, the purchase officer come to

know the types of materials needed by the organisation. A purchase requisition is a from

used as a formal request for the purchasing department to purchase materials.

b. EXPLORING THE SOURCES OF SUPPLY & SELECTING THE SUPPLIER

A source of supply of materials is to be selected after the receipt of purchase

requisition. In TCL, the process of choosing the supplier is not a hard task. The store

keeper generally mentions the name of current suppliers, their price quotations and the

purchase department also has a series of good suppliers. Choosing the right supplier

from the suppliers list involves a process of comparitive statement of purchases. It is a

statement prepared by the purchase department.

c. PURCHASING ORDER

After choosing the supplier, the purchase department prepares the order for the

supply of stores. The order is a written authorisation to the supplier to supply the

particular material or materials. It is the evidence between the buyer and the supplier

having the terms and conditions of the purchasing order.

d. RECIEVING & INSPECTING MATERIALS

In large concerns, a separate receipt & inspection department independent of

stocking location should be set up to receive and inspect the materials. But in small



concerns, the work is done by the store keeper. In TCL, the stores department makes the

general purchase only. When goods are received in stores, the consuming department is

informed and the personnels from this department come to stores and inspect the quality,

quantity etc.

e. CHECKING & PASSING BILLS OF EXCHANGES

After checking, the bills are passed. Generally, the payment terms of TCL are

Against invoice or acceptance of stock a minimum 15 days credit

In case of monopoly suppliers, they are sent or paid through banks.

CONDITIONS REGARDING RECEIPT OF GOODS

If the suppliers are within Kerala, a time within 15 days of sending or inviting

quotations

If the suppliers are outside Kerala, a period within 20 or 30 days

The company makes a local purchase itself within 2 or 3 days.

PURCHASE LIMITS

In TCL, they followed an authorised purchasing system. The purchase units are

as follows:

1. Below and upto Rs.25000, purchases are maintained by Deputy Manager and

sanctioned by General Manager(O)

2. Rs.25000 – Rs.1000000, purchases are maintained by Chief Manager should

sanctioned by General Manager

3. Rs. 1000000 – Rs.5700000, it should be signed and approved General

Manager(O)

4. Rs.5000000 and above, approved by Managing director

OTHER DEPARTMENTS

STORES DEPARTMENT



Purchase Manager

Store keeper

Assistant store keeper

Helper

Sweeper

FUNCTIONS STORES DEPARTMENT

To store the raw materials for different departments

To prepare the purchase order

To prepare the stores records such as Bin card and Karade - X card

Stores is the department for storing the raw materials. The materials are

collected as per the order made by the department, which is known as purchase order.

LOCATION & LAYOUT

The location of stores department should be carefully planned out and it

should be near to the receiving department, so that transportation cost should be

minimum.The department is a centralized storage system in the company. The raw

materials for different departments are stored in the stores.



ADVANTAGES OF CENTRALIZED STORES IN TCL

1. Better control can be exercised over stores because all stores are housed in one

department.

2. Better layout of stores is possible.

3. Investment in stock is minimised.

4. Economy in cost.

5. Economy in staff and concentration of experts in one department will lead to

development in high technical skills.

6. Less botherisation in inventory checking as all the stores are located in one place.

STORES RECORDS

The Bin card and Karade – X card are the two important stock records that are

kept in TCL for making a record of various stores.

BIN CARD A bin card makes a record of the receipts and issue of materials and is kept

for each item in the stores. Quantity of materials received are entered in the receipt

column and the quantity of stocks issued are recorded in the issue column of the bin card

and the balance of the quantity of stock is taken after every receipt or issue , so that the

balance can be seen readily at any time. A bin card is usually hanged up or placed in

shelf, rack or bin where the materials have been kept.

KARADE X - CARD This card is used in TCL by store keeper in addition to the bin card for storing

the list of stock of items. TCL doesn’t maintain a stores ledger now, instead of this all

the details are stored using software in the computer. The existing system is a Foxpro

based system.



PURCHASE ORDER

To make a purchase order for the General Stores department, it requires the

following process:

1. GENERATION OF SPI

The purchase requisition for the General Sotres department is generated through Store

Purchase Indent. It is used for informing the purchase department, where the materials

are stored and what is the price, and a general awareness about how it is previously

dealt. Demanded items, ordered from consumer section and Replenishable items,

ordered from the General Stores departmet itself are the two types of items stored here.

Demanded items which are highly expensive are ordered as per the order of the

consumer. Replenishable items are highly consumable items, so the consumers would

not demand it always, so it is ordered from the General Stores departmet itself.

2. ISSUE OF MRI

Material Received Intimation is used for intimating whether the materials are

received or not and also for certifying the quality of materials.

3. ISSUE OF MRR

Material Received Report is used for recording the details about the received

materials, about its quality and quantity.

4. STOCKING OF MATERIALS

Materials should be properly stacked and it should be kept according to its code

number, shelf number and godown.

5. ACCOUNTING & DELIVERY OF MATERIALS

The payment of the materials can be made in cash or cheque. The materials

should be accounted accordingly. Certain items will be delivered in advance or at the

time of payment or after 15 or 30 days.



MAINTENANCE DEPARTMENT

General Manager

Chief Manager Chief Manager Chief Manager

( P&A) (M&E) (Finance)

Deputy Manager

(Electrical Engineer)

Foreman

Chargehands

Electrician

Electrical section & Mechanical section are the two sections included in the Maintenance department.

FUNCTIONS OF MAINTENANCE DEPARTMENT

Operation of electrical equipments & machineries

Maintenance of electrical equipments & machineries

Maintenance of equipments



Annual maintenance Preventive maintenance

Half yearly maintenance

Quarterly maintenance

Monthly maintenance

Fortnightly maintenance

Weekly maintenance

Daily maintenance

Hourly monitoring

PURPOSE

a. To ensure smooth and safe running of the electrical machinery.

b. To provide safe and trouble free operation without risk to health of workers.

SCOPE



It covers all electrical machinery and equipments connected in HT & LT side

of transformers at Nattakom.

ELECTRICAL SECTION

The total number of employees working in the electrical maintenance section

is 24, out of which 12 employees are concerned with the electrical maintenance of the

plant and other 12 undertake the maintenance work of the power plant. The company

has its own substation for power supply. In order to ensure the safe and smooth

operation of electrical machinery and equipments, a five tier system of electrical

maintenance is practiced here.

1. DAILY INSPECTION AND CHECKING

Heavy electrical machineries like transformers, mill motors, compressor

motors etc. are checked by Chief Electrician, on a daily basis before it starts

functioning. If any minor fault will find out, it may be attended by himself. Otherwise it

would be informed to the electrical department.

2. PERIODICAL INSPECTION AND CHECKING

All the electrical equipments and machineries are periodically checked by

Electrical section inorder to ensure the safety of workers and also for the smooth

functioning of the department.

3. BREAKDOWN MAINTENANCE

In case of any breakdown of the machineries in the production department,

information regarding the breakdown is given to the maintenance department, and

subsequently maintenance workers are sent to production department to solve the

machine failure.

4. PREVENTIVE MAINTENANCE



Under this activity, a team of maintenance workers is sent directly to the

production plant to find out whether there is any failure in the machinery or not.

5. SHUT DOWN MAINTENANCE

When the plant is shut down due to the failure, the employees in the production

department sent a letter to the maintenance department to solve the problem.

MECHANICAL SECTION

All mechanical works are undertaken by the mechanical section of the

maintenance department. The company has a workshop under the control of this

department.

There are nine subdivisions for the mechanical section. They are:

Fitter

Automobile section

Diesel mechanic section

Welder

Turner

Blacksmith

Carpenter

Khalasis

Tool section

The total number of workers in the mechanical section is 72 out of which 4 are

chargehands, a foreman and an attender. The rest include the officers and other skilled

workers.

LAB

Junior Manager (Quality control)

Junior Manager ( Lathe)



Junior Executives ( Lathe)

Assistant Chemist

Chief Gauger

Tester

Sample boy

Helpers

FUNCTIONS OF LAB

To test the quality of raw materials

To whether the product involves the right proportion of raw materials

To maintain the quality of the products

Unlike other government organisations, where quality is secondary, at TCL

quality is being given the prime position. The ISO 9002 certification is a proof for

enduring the quality commitment of TCL. TCL has its own laboratory which

continuously striving to maintain the quality of the products. There are three levels of

testing conducted in the laboratory. They are:

a. RAW MATERIAL TESTING

Raw materials are tested for ensuring the quality of products even before

manufacturing.



b. PROCESS TESTING

Process testing is done before the grinding of lime shell, sand and clay.

c. INTERMEDIATE TESTING

In this testing, slurry is tested for finding out whether it contains right

proportion of lime shell, sand and clay. Then slurry is taken to kiln for burning.

TRANSPORTATION DEPARTMENT

Chief Manager (M&E)

Deputy Manager (Stores)

Transport Suprend

Charge hand

Fitter

Barge crew

WATER TRANSPORT DEPARTMENT

FUNCTIONS OF THE DEPARTMENT

Lime shell dredging

Transportation of lime shell



Mainly water transportation facilities are used for bringing limeshell from

Vembanadu lake. The company has two dredgers of which one is hydraulic and the

other is mechanical. Dredger is used for cutting and sucking limeshell from the river

bed. There are 6 bargers and the capacity of each barger is 70 tonnes approximately. The

bargers are used for transporting lime shell from Vembanadu lake to the unloading

station.

There are four workers in a dredger, foreman, chargehand and two operators.

The capacity of two dredgers is 3 tonnes per hour. The cutter of dredger is about 10m in

length. There are six workers in a barger. The capacity of a wooden barger is 70 tonnes.

GENERAL TRANSPORT DEPARTMENT

Free transportation facilities are given to the staff to come to the office. For

the purpose the company has two buses of their own. It is available to workers in all

shift.

WORKSHOP

Officer

Foreman

Chargehand

FUNCTIONS

Maintenance of machinery parts

Repairing of spare parts, pipe line, oil line, vehicles etc.

The company has one workshop under the control of the mechanical

maintenance department. The maintenance and repairing of machinery spare parts, pipe



line, oil line, vehicle etc. are undertaken in the workshop. Fitter, Automobile section,

Diesel mechanic section, Welder, Turner, Blacksmith, Carpenter, Khalasis, Tool section

are the nine different sections in the mechanical maintenance department.

The repairing of machinery spare parts, pipe line, oil line etc. and the

machineries related with plant are undertaken in the workshop. Dredger and barger is

also repaired here in this department. If any fault occurs in the running plant, workers

from this department will be sent there.

There are 80 employees working in different sections of the workshop as

welders, fitters, blaksmith, carpenter etc.

PACKING HOUSE

Packing house in charge

Assistant in charge

Supervisor

Fitter

Packer

Helpers

Here cement is drawn from storage spoils and packed in the paper bags by

automatic machines and dispatche.

DREDGING DEPARTMENT

The main raw material for the production of Vembanadu White Cement is

limeshell an under water deposit in Vembanadu lake, is dredged and brought to the



company by means of power bargers. The company has two dredgers, one hydraulic

dredger named Lokanathan of 5000 gallion capacity and one mechanical dredger,

Rudger of 2000 gallions capacity. The dredger can cut the limeshell around 40 ft.

maximum depth. The dredger works on two powerful engines, a dredger pamper engine

and an auxilliary engine.

TIME OFFICE

Time Office comes under the personnel department. The main function of the

office is to maintain attendance register and calculate the monthly working hours of each

employee. The company follows punch card system for measuring attendance.

CAMP & SANITATION DEPARTMENT

This department is concerned about the cleanliness and neatness maintained at

the premises of the company.

SECURITY DEPARTMENT

The department is mainly concerned with the security and control of the

company. There are 28 employees working in the security department on shift basis.

MEDICAL DEPARTMENT

This department provides medical aid to both permanent and temporary

employees. The medical leave of the employees is recorded and sactioned from this

department.



CHAPTER 5

SWOT ANALYSIS

SWOT ANALYSIS

STRENGTHS As TCL is a government owned firm, it enjoys privileges granted by the

government. Standard quality products are produced here.TCL is the only white cement



manufacturer in the world to manufacture cement from natural lime shell, and it uses

wet process technology for cement production.Therefore the product maintains high

quality.

Only company which uses the natural lime shell for manufacturing white

cement

Standard quality products

Good training system

Good organisational climate

TCL is a government owned firm, it enjoys privileges granted by the

government

Brand image

WEAKNESS

Very low budget for advertisement, influence from government and political

parties, sales representatives are less, surplus labour, lack of transportation

facility,scarcity of main raw material lime shell etc. can be traced as the weakness of the

company.

Company is running on loss

Poor advertisement

Sales representatives are less

No credit facility

Dealers dissatisfied with credit facility

There is no proper mechanism to handle customer grievances

Influence from government and political parties

High price compared to other brands

OPPORTUNITY

The company should opt for psycho graphic segmentation of the market,

where more stress should be given to the quality and fitness of the product. It should

expand the distribution network to those markets where the competitors are less

powerful. It can compete in the national market supported by good advertisement.

Compete in the national market if there is good advertisement



Liberalisation demand for cement paint

Company introduces promotional programmes

THREATS

High competition

Liberal policy of other brands

Promotional programmes of other brands

Complicated national market

Good replacement of other brands

Increasing oil price



CHAPTER 6

OBSERVATION/SUGGESTIONS

OBSERVATIONS/SUGGESTIONS

Replace the production technology with DRY process where the cost of

production is less.



The company is working with more employees than required is happened due to

political pressure. Hence the company has to work independent of political

influence.

Employees has the fear that the Company may be winded up due to loss and are

favoring privatization of the Company to save the Company from winding up

The Company has to expand its business outside Kerala where there is less

competition.

The company should advertise its product so that more people may know about

the products

The company should plan to have market network in rural areas of Kerala

which are not covered under the market network of TCL



Chapter 7

Conclusion

CONCLUSION

TCL Kottayam is one of the pioneers in the white cement industry.

TCL is an ISO 9002 certified company, which was certified by Bureau of Indian



Standards (BIS). This shows company’s consciousness towards high quality production.

But the company is making a recovery from this by the utilisation of better opportunities

and making further diversifications. The company is earning profit by the last three

months as it got a fund of 2 crores as government aid. And the cost of the furnace oil,

which is used for the WET technology is decreased and the company has sufficient raw

materials now.

The study provided useful insights into the company and its

functioning. It is worth that the company has done a great task in the provision of

cement products to cater the needs of construction in a big way. TCL happens to be the

only manufacturer of white cement with limeshell as its main raw material. With the

implementation of a new technology, improving the marketing strategies, and solving

the existing problems, the company is ensured of bright prospects.

BILIOGRAPHY



Mamoria C. B., Personnel Management, Himalaya publishing.

Kothari C.R., Research Methodology, New Age Information (P) Limited.

Dr. Gupta C. B., Human Resource Development, Sultan Chand and sons.

Kotler Philip, Marketing Management, Pearson Education.

Dr. Mahasweri S.N., Pandey I..M., Principles of Management Accounting,

Dr. Prasad L. M., Principles and Practice of Management, Sultan Chand and sons.


a report 0n the ion study at

Documents

natural cement

cement factory

cement plant factory

travancore cements

slaked lime lime

product structure

blue lime

lime stone