1.1.

An introduction to the study

Organizations play an important role all over the world. Global competitiveness and leadership in any industry or organization requires having masters in the core professions of the industry. It is the organizations that meet the peoples needs and provide them with products, services or both. This organization study is aimed at gaining an understanding of the functioning of the organization as a whole, and also the various departments. The study helps to gain a realistic and factual knowledge about the functions of the organization. This report is based on the study done at The Kerala Minerals and Metals Ltd. The Kerala Minerals And Metals Limited was taken over by the state government in the year 1956. The forerunner of KMML was The F.X. Perira and Sons (Travancore) Pvt Ltd., established by a visionary private entrepreneur. The unit was subsequently converted as a limited company in 1972 by the name of The Kerala Minerals and Metals Ltd.. The following are the broad objectives of KMML: Optimum utilization of mineral wealth found along the sea coast of KollamAlappuzha Districts. Large scale generation of employment in the state in general. Overall growth and development of the local area in particular and the state in general.

KMML is one among the four producers of Titanium Dioxide in India. Titanium Dioxide is a pigment used in the production of various products like paints, medicines, cosmetics, printing inks, rubber, textiles, ceramics and paper. They also produce titanium tetra chloride, ilmenite, zircon, rutile, monazite, leucoxene, sillimanite and iron oxide bricks. KMML is the leading producer of Titanium Dioxide in Kerala.

1.2. Scope of the Study

The study is conducted at The Kerala Minerals and Metals Limited, Chavara, Kollam, which is a well reputed public sector undertaking in Kerala. The study is aimed to understand the functioning of an organization and its various departments. The study also helps to gather an idea of the coordinated working of all the departments of the organization like the marketing, financing, human resource and the production departments.

1.3. Objectives of the study

The objectives of this study undertaken is to Acquire knowledge about the various functional and managerial aspects of the organization. Find out the various departmental processes and its working. To understand the organizational profile, the structure of authority and different levels of management. To study the coordination among the various departments for the proper working of the organization. To analyze the performance, key resources, strength and weaknesses of the organization

1.4. Methodology
The two methodologies used for this study were primary and secondary data collection. The primary data were collected by interacting with the various department heads and other staffs. In-depth interviews with the managers of the various departments gave a clear idea about the respective department, its structure and its functions. The visit to the various departments of the organization also helped to understand the working of these departments. Hence observation method was also a technique used for data collection. The secondary data were collected from the newsletters and journals of the KMML, also the various websites including the website of KMML.

1.5. Limitations of the study

Some of the limitations to the study were that the study was limited to the titanium dioxide production plant of the KMML. Time constraint was another limitation as the study was limited to 30 days only. Also the complex organization structure made it difficult to collect all the data. From the interviews with the employees and the other authorities, it is assumed that the data are authentic.

2.1 ANALYSIS OF THE REMOTE EXTERNAL ENVIRONMENT POLITICAL FACTORS

The company is subjected to the budget, and the auditing controls as applicable to government activities. Also, being a public sector concern political interference has been creating problem. There has been interference by the local politicians in the activities of KMML. There was a recent petition filed in the high court mentioning the political intereference in the company. KMML was set up at Chavara in Kollam due to the high availability of ilmenite in the area. The state government had notified that mineral sand in the shores of Karunagappally and Kayamkulam would be for the exclusive use of KMML, a public company that exports titanium used mainly for manufacturing aviation products. When ilmenite became scarce due to pilferage, the company decided to process the mineral on their own from mineral sand. But this was dropped later on, allegedly due to intervention of politicians. Instead, the company issued tenders to purchase 12,000 tonnes of synthetic rutile, a mineral having higher content of titanium than ilmenite, from outside sources, the petitioner alleges. The Liberalization, Industrialization and Globalization also have an immense impact on KMML.

ECONOMIC FACTORS Exposure to global prices is double edged sword. The fluctuations in the global prices of titanium dioxide affect the sales and the profits of the company. The products finds a wide range of applications and hence the ups and downs in these industries also affects the production of the company. Ilmenite and Rutile finds use in variety of industrial products such as welding electrodes, titanium metal sponge, titanium salts, synthetic rutile etc. The titanium dioxide is also used in a variety of industries mainly in the production of paints, printing inks, plastic, paper, rubber, textiles pharmaceuticals, cosmetics and ceramics. The demands in almost all of these industries have been increasing which paved a growth rate of its production. KMML is the only organization in India with fully

integrated technology to produce titanium dioxide through the chloride path. Since the plant is fully integrated, it helps in the profitable fixation of costs too.

SOCIAL FACTORS Continuous emphasis is given to the safety of plants & personnel through continuous upgradation of safety equipment and firefighting facility and rigorous training. KMML also nurtures a performance oriented work culture with a comparative mindset. Increased customer focus and loyalty is one among the positives of KMML. In the emerging competitive business environment, KMML is further shaping its customer focus and providing customers with quality products. KMML operates as a responsible corporate citizen, utilizing its resources for the development of the local community. The company lends top priority in employing the local people and also in suitably compensating or employing the people whose lands were/are acquired by KMML. Of its total employee strength of 1770, 1067 are local people who were affected by the project. This represents 60% of the total employee strength. A number of social welfare schemes are envisaged and executed taking into consideration the needs and aspirations of the local people.

TECHNOLOGICAL FACTORS KMML have set-up a plant to manufacture titanium dioxide by chloride process. The plant has an installed capacity of 22,000 TPY but the production is only around 9,000 TPY. The technology was provided by KMCC of USA. The Kerala Minerals and Metals Ltd (KMML) is the worlds first fully integrated Titanium Dioxide Plant. KMML is also Indias first and only manufacturer of Rutile Grade Titanium dioxide by chloride process. New innovative techniques are adopted and also the timely maintenance is ensured to all the manufacturing plants as the company is involved in the production of chemicals, which is very hazardous. Modernization, Capacity enhancement and pollution abatement schemes are to be carried out on an emergency basis. The KMML entered in to technical collaboration with three multinational corporations M/s. Kers MC Gee Chemical Corporation of USA, M/s. Benedict Corporation of America, M/s.
4

Woodall Dukham of UK respectively for the above. The Metallurgical of Engineering Consultants India Limited (MECON) a Government of India Undertaking did the detailed engineering.

2.2. INDUSTRY PROFILE 2.2.1. GLOBAL SCENARIO Titanium metal (Ti) is the ninth most abundant element found in the earths crust. Aerospace and medicine are some of the common areas were the metal has applications mainly due to its high resistance to corrosion. Mining of Ilmenite is carried out in several countries like Australia, Norway, Srilanka, Malaysia, South Africa and India. The total reserved of world Ilmenite is estimated to be approximately 1722 million tones. Titanium dioxide is far more stable than any other pigment. Its perfect non toxicity and chemical inertness makes it an ideal choice as a white pigment. The light scattering property of finely divided titanium dioxide is unmatched by any other non-material. The chemical is available in two crystalline forms, viz. Anatase and Rutile, which are of much commercial significance. This is because of the unique combination of its superior properties of high refractive index, low specific gravity, high hiding power and non-toxicity. It also has high tinting strength and dispersion properties as well as chemical stability. The titanium dioxide market is unique and even when it is approaching 100 years old; there are still no functional alternatives that provide the same value for the use of customers. The industry has gone through a metamorphosis in the past decade. Looking over the next 20 years, at least some new Titanium dioxide pigment will be made, though most of industries additional capacity will come from expansion pigment consumption which rose sharply in Western Europe and Asia/Pacific (excluding Japan) during the year 2000. East Asia is presently the most attractive region in the world for Titanium dioxide. 2.2.2. INDIAN SCENARIO In 1909, a German Dr Schumberg discovered the presence of monazite in the Black Beach Sand of Manavalkurichi in the East Travancore state. The presence of mineral sand in the coir being exported later led to the discovery of certain other elements. The Geological survey conducted later on in India, established
5

the occurrence of monazite and metals like Ilmenite, Rutile, Leucoxene, Silmenite and Zircon. India has a wealth of titanium minerals with very low ratio of resource to utilization. A sound titanium dioxide industry is essential to ensure optimum utilization of these resources as well as to develop a vibrant industry in the field of this strategic mineral. Although some technology base is available in the country for both sulphate and chloride processes of titanium dioxide pigment manufacture, additional imports of knowhow and technology are considered essential to update the existing sulphate and chloride technologies in the country. The Indian raw material may be upgraded to synthetic Rutile of titanium slag before being exported to fetch better returns. Presently synthetic Rutile is being manufactured in the country by IRE, KMML and two other private companies. However there is no project to manufacture Titanium slag which can be used for sulphate process, chloride process and also for manufacture of titanium sponge. This gap needs to be bridged at the earliest.

2.2.3 REGIONAL SCENARIO Gods Own Country is best owned with a long coastal belt. At present in Kerala, TTP and KMML are the only two manufacturers who produce titanium dioxide pigment. Indian Rare Earth Ltd (IRE), a Government of India undertaking has a mineral separation unit in Chavara which separates minerals from the beach sands. IRE also operates two mineral separation units, which are located in Manavalakurichi in Tamil Nadu and Challarpur in Orissa. Firstly Travancore products were started by His Highness Chitira Thirunal in 1946 and titanium dioxide using the sulphate process technology. Later the KMML which was situated in Chavara came into existence and started producing Titanium Dioxide with the help of HCL acid process technology (chloride technology). Present Status: Titanium dioxide is a key ingredient in automobile paint production and currently is in short supply. As the demand for cars and other consumer goods increases so does the demand for titanium dioxide. The global titanium dioxide

sector ended 2010 with prices soaring through the market. 2011 the industry attained gains and are reported to be significant as well.

2.3. INDUSTRY ANALYSIS 2.3.1 INDUSTRY KEY PLAYERS The major players in the titanium production industry across the world are as follows: DuPont Co., Wellington, USA Ishihara Ltd., Japan Rhone Poulene, France Bayer Lever Kusen, West Germany Kemira Helsinks, Finland Hoitex (USA) Millenium (Germany) Henduk (Seoul, Korea) Fletcha Titanium Products (New Zealand) Tofins(Netherlands) There are only four major manufacturers of titanium dioxide in India, and KMML is the only completely integrated producer of titanium dioxide among these manufacturers which puts KMML in the leading position as the titanium dioxide manufacturer in India. The major competitors are: 1. Travancore Titanium Product Ltd (TTP), Trivandrum: Travancore Titanium Products Ltd (TTP), is a manufacturer of anatase grade titanium dioxide in India. The company was incorporated in 1946 at Thiruvananthapuram, the capital of Kerala, India on the initiative of Sir C.P.Ramaswamy Iyer.
7

2. Kilburn Chemical Ltd, Chennai: Kilburn Chemicals Limited (KCL) is a leading producer and exporter of Anatase Grade Titanium Dioxide in India. It produces Titanium Dioxide by the Sulphate route. KCL also manufactures and exports the by-product Ferrous Sulphate. KCL has commenced operations in November 1994. 3. Kolmak Chemical Ltd, Kolkata: Kolmak Chemicals Limited manufactures Rutile grade pigments in India. It offers TiO2 (Rutile), a pigment produced through the sulphate route. The company serves paint and powder coating manufacturers; and plastic, coatings paper, ink, and various other allied industries. Kolmak Chemicals Limited was incorporated in 1977 and is headquartered in Kolkata, India.

2.3.2 COMPETITOR ANALYSIS The Titanium Dioxide industry is growing worldwide. The Indian reserves of Illuminate and Rutile is expected to be around 6 crore tones. Beach reserve is also seen in Rathnagiri (Mahi), Ganjan (Orissa) and Srikakolam (AP).The reserve in Kerala and Tamilnadu is around 25 million tones, there are about 20 million tones reserves in Orissa. This information through right in to the possibilities of new manufactures and competitions in Titanium Dioxide pigment Industry in the Indian market with the increasing demand for the paints, rubber, plastic and printing ink etc. The arrival of new manufactures will be more in the near future. This will ultimately results in tight competition. The demand of TiO2 highly depended on the finished products likes plastic, paint, rubber, paper, printing ink, etc. The demand for the high quality Titanium Dioxide will increase the profitability of the business. KMML enjoys the monopolist position in the titanium dioxide pigment manufacturer in India. The Titanium Dioxide Rutile grade is produced only by KMML in India. KMML has to face completion from world TiO2 producers due to liberalization and globalization. It faces stiff competition with foreign companies like: DUPONT(USA), MILLENIUM(Germany), ISHIARA(Japan), TIOFIN(Netherland),

KEMEGA(Finland), MONITOX(USA), KERSEMEGREE(USA).

3.1. OVERVIEW OF THE ORGANISATION 3.1.1. BACKGROUND AND HISTORY Kerala is blessed with rich and extensive mineral deposits. This deposits stretch along the sea cost between Neendakara and Kayamkulam, a track generally known as Chavara coast. This deposits stretch up to a distance of 18 Km along the coastal strip and having a depth of 8m. The dark sands of Travancore coast are rich in mineral deposits as Monazite, I1lmenite, Rutile, Zircon etc. The company is located at Sankaramangalam near Chavara, Kollam a coastal town 85 km north of Thiruvananthapuram. KMML is situated on the side of NH-47 to about 285 acres in area. KMML has a worldwide reputation, a socially responsible company with an eco-friendly image. The company derived strength from its dedicated manpower and customer organization. KMML is fully owned Kerala Government Enterprise. There are about 2000 employees in the company at present that helps KMML to grow. History of KMML In the earliest periods of 19th century, precisely in 1909 a German scientist named Mr. Schaumberg happened to discover traces of I1lmanite and monazite in the black beach sands of Chavara coast in the Kerala state of India. Schaumberg who was then working for an English firm got the sand exported to England. At that time there was great demand for monazite because of its wide application in the mantle making of gas lights. Continued efforts of German led to the discovery of other minerals such as Rutile, Zircon, Silmanite etc in large volume in the sand of Chavara coast between Neendakara and Kayamkulam. The discovery of monazite was quite accidental. Even though the German laid foundation for a mineral separation plant at Chavara its activities were curtained by World War2. The first full-fledged mineral separation plant in Chavara was established by a private entrepreneur in 1932 as F. X. Pereira and Sons (Travancore) Pvt. Ltd. They were involved in mining and separating mineral sands into various constituents like Illmanite, Monazite, Rutile, Zircon, Leucoxene etc. During 1956 this concern was taken over by the state government and was placed under the control of its industries

department. The unit was converted as a limited company with effect from 1.4.1972 in the name of "The Kerala Minerals and Metals Ltd". Initially the company had only one unit known as 'Mineral Separation Plant'. In 1974 the company received intent for the production of Titanium dioxide (Ti02) pigment using Chloride process. In 1976 KMML registered its 2nd unit known as Titanium dioxide Pigment Plant. Its construction started only in 1979 and total capital cost was Rs.144 Crores. The plant was commissioned in December 1984. KMML became the first and only Integrated Titanium dioxide plant in the world. Even though KMML was commissioned in 1984 it was not able to operate efficiently due to technical problems. Due to these problems the company has to suffer an accumulated loss of more than the capital investment over a period of 8 years. In the above circumstances it was in 1991 that the entire personnel of KMML from top management to down to the lowest workers started to think individually and collectively about the requirement of a 'Turn Around'. A strategy was planned and implemented with the wholehearted support of the workforce during the period 1991-1993.1t started to yield results and the Company attained the breakeven level by 1993.From 1993-1994 onwards, the company started to make profits and wiped out the entire accumulated loss within a few years and repaid the long term loans. Thereafter, it is the story of success and growth.

INCORPORATION OF KERALA MINERALS AND METALS LIMITED Kerala is a land enriched with heavy mineral deposit. This richness evolved the formation of the company Kerala Minerals and Metals Limited (KMML). It was all way back in 1909, when a German Chemist namely Dr. Schaumberg noticed some brown sand particles sticking with coir exported from India. He realized that the particles present were Monazite leading to the discovery of vast deposits of Monazite in the black beach sands of Manavalakuriclll in the east Travancore state. Late the Geological Survey of India established the occurrence of Monazite and other earth minerals like limonite, Rutile, Leucoxene, Sillimanite and Zircon. M/s. F X Pereira & Sons (Travancore) Private Limited were the pioneers who established the first fullfledged Mineral Separation industry in Chavara area way back in 1932 using the dry separation process. Gradually the company found itself in financial crisis and in January 1956, the Kerala State Government took over the company and continued under name F .X.P Minerals in 1972 the Government renamed the name of the
10

company as The Kerala Minerals and Metals Limited (KMML). At present KMML consists of two units, the Mineral Separation Plant and the Titanium Dioxide Pigment Plant.

TECHNICAL COLLABORATION The KMML entered in to technical collaboration with three multinational corporations M/s. Kers MC Gee Chemical Corporation of USA, M/s. Benedict Corporation of America, M/s. Woodall Dukham of UK respectively for the above. The Metallurgical of Engineering Consultants India Limited (MECON) a Government of India Undertaking did the detailed engineering. 3.1.2. COMPANY VISSION, MISSION, AND VALUES Vision of KMML KMML has a vision to be the world class producer of mineral sand based value-added products. Mission of KMML

1. To become the noble agency for promoting and establishing minerals based industries in the state to ensure value addition and effective and controlled exploitation of the mineral reserves. 2. To develop adequate supply base for the services and utility for development of the mineral based industry. 3. To create more awareness about corporate social responsibilities for chemical industries in the state. 4. To become the leader in controlling greenhouse gas emission so as to promote the concept of green earth.

Objectives of KMML

1. To exploit the mineral wealth abundantly available in the coastal belt. 2. To manufacture value added product like Titanium Dioxide and Titanium metal through chloride route technology.
11

3. Large scale generation of employment in the state. 4. Overall development of local area in particular and state in general.

3.1.3. PRODUCTS AND MARKETS The nature of business of KMML is that it is a Manufacturer of Titanium Dioxide as the primary product. Bringing more to your everyday life, KMML touches you in numerous ways. Be it the dress you wear, the cosmetics you use, the medicines you take, the paints you decorate your home with or the utility plastic products, our products are there. It is the only integrated Titanium Dioxide facility having mining, mineral separation, synthetic rutile and pigment-production plants. Apart from producing Rutile grade Titanium Dioxide pigment for various types of industries, it also produces other products like Ilmenite, Rutile, Zircon, Sillimenite, Synthetic rutile etc. Manufacturing Titanium Dioxide through the chloride route, KMML produces very pure rutile grade Titanium dioxide pigment. The different grades churned out by KMML under brand name KEMOX has a ready market which asks for more. The commendable work in research by the R&D department has also helped KMML to add more colors to its portfolio. KMML always maintain high standards of perfection, achieving technical excellences in every phase of production. Catering to strict guidelines, KMML offers a wide range of products for quality conscious customers. KMML offers Rutile grade Tio2 as the main product and also offers zircon, leucoxene, titanium tetra chloride as the secondary products. Titanium tetra chloride is extensively used in manufacture of titanium dioxide pigment, titanium sponge or metal. The main products of KMML are: Titanium Dioxide Pigment (Rutile)

KEMOX RC 800 KEMOX RC 808 KEMOX RC 822

12

KEMOX RC 813 Titanium Tetra Chloride Ilmenite Rutile Leucoxene Zircon Silliminite Monazite Iron oxide bricks

Applications: KEMOX RC 822 from KMML is a multiple application pigment, which is in great demand in the world market. The production of other grades of Titanium Dioxide pigments like RC 800, RC 813, RC 822 and RC 808 has its own importance in the world scenario. Minerals like Zircon and Monazite are used in the development of Nuclear Technology. The manufacture of Iron oxide bricks from the waste Iron Oxide, which is used for building purpose. The KMML Titanium pigments are reputed for their high degree of gloss, tint retention capacities and ease of dispersion. The product profile of the KMML and their applications are shown in the figure below: Sl.No 1 Products Titanium Dioxide Pigment 2 Titanium Tetra Chloride 3 Rutile Application paints, printing inks, plastics, paper, rubber, textiles, ceramics Titanium dioxide pigment, Titanium sponge, titanium salts Welding electrodes, titanium compounds, titanium dioxide pigment

13

Ilmenite

Titanium dioxide pigment, titanium chloride

Leucoxene

Welding electrodes, Titanium dioxide pigment

6 7

Zircon siliminate

Nuclear technology High temperature refractory

Iron oxide bricks

As building material

Source: http://kmml.com/php/showContent.php?linkid=18&partid=2

Fig: 3.1

At present KMML produces six grades of titanium dioxide pigment under the brand name of KEMOX. The different grades of Tio2 pigments that are produce in the KMML and there uses are given below:Grade KEMOX RC 800 KEMOX RC 808 Uses Interior decorative and industrial paints and most ink applications Used for coating with glass to which prevents the spreading of water. This helps the automobile industry to design the vehicle without using any wipers KEMOX RC 813 KEMOX RC 822 Source: Marketing department, KMML Fig: 3.2 For powder coatings and industrial coatings Used for decorative and emulsion paints

14

Major Consumers:
The marketing network of KMML is spread worldwide. KMML exports to the developed and developing nations and has earned a two star rating as an exporting house. The web of over 30 offices servicing 50 nations is the backbone of the marketing network. KMMLs products are supplied to industries all over the globe, including countries like China, Korea UK, Philippines, South Africa, Turkey, Mauritius, Dubai and Sri Lanka. At KMML, customer is the king. A team of motivated marketing experts, who make it their business to find out your views, highlights our customer consciousness. Maintaining close contacts, they are perfectly aware of the customers needs and are instrumental in offering world-class services and prompt attention to your every requirement.

Major customers in the domestic market are served directly by the company. KMML has an all India network of 28 stockists to meet requirements of our customers. Paint industry is the prime user of Ti02 pigment in India as well as in the foreign countries. Recently the automobile industry also extensively uses Ti02 pigment. Customers are divided into two: 1. Direct customers 2. Stockists

Direct Customers Paint industry contribute large customers of Tio2, other largest customers include such industrial as paper, plastic, polyester. The bulk of the products in KMML are consumed by companies namely Asian Paints, Berger Paints, Rajdhoot Paints, Mega Meditex, Camlin, Jenson & Nicholson, Hindustan Latex & Resin, Finolex, Shalimar Paints, Sanderson Chemicals, Plastic Chemix Industries Stockists Supplies to small sectors are done through stockists appointed by the company in all major cities. Company fixes prices for its products and the stockiest are responsible to
15

see the pellets at fixed price. KMML has an all India network of 28 stockists to meet requirements of customers. Some of the major stockists are Ashit Enterprises, Kemco Corporation, Hero Dye Chemical Industries, Bharat Solvent & Chemical Corporation, Balaji Export House, Karnataka Chemicals, Manorama Sales Corporation, Bajaj Chemicals etc.

3.1.4. AWARDS, RECOGNITIONS, AND CERTIFICATIONS

CERTIFICATIONS KMML achieved ISO 9002 certificate by M/S Bureau virtues Quality International (BVQI) and holes certification of United Kingdom Accreditations Service. Dutch Council for certification (Holland) and Register Accreditations Board (USA): KMML has won the 1997 National award for in-house research and development effort in industry for technology absorption under the TAAS program. The Kerala productivity Council award for high productivity standard has also been won by KMML ISO 9001: 2000 (Quality Policy) KMML was certified for quality management system ISO9002:9004 in June 2000 and was rectified and upgraded to ISO 9001:2000 quality management systems (QMS) in November 2003 for its TP unit. ISO14001:2004 (Environment policy) KMML has been certified an ISO 14001:2004 in the year 2005. As recognition of protecting and safeguarding the environment by

Strictly complying with the statutory and regulative requirements. To control their impact on land, air and water and thus prevent pollution. To reduce health and safety risks. To optimize the use of resources.

OHSAS 18001: 1999 (Occupational Health and Safety) The manufacturer of synthetic rutile and rutile grade Tio2 are committed to protect health and safety of the employees and everybody involved in this activity of
16

the company. The company complies with health and safety regulations and other requirements to which they subscribe. ENVIRONMENT QUALITY SYSTEM KMML has formulated a comprehensive, systematic, planned and documented manner of organizations environment programmes.

Environment Policy

Management review

Planning

EQS

Checking & corrective action

Implementation & Operation

Source: HR department, KMML

Fig: 3.3

AWARDS AND RECOGNITIONS Global Recognitions International Gold medal Award for Quality & Efficiency from UK in 2003 APCJ Award from Asia Pacific Coating forum for the Best International

Marketing Campaign in May 2003 Other Awards Award for R&D efforts in Industry FACT MKK Nair Memorial Productivity Award Energy Conservation Award 1992 1993 - 1994 1999
17

FACT MKK Nair Memorial Productivity Award FACT MKK Nair Memorial Productivity Award Energy Conservation Award CAPEXIL Award for best export performance Award for best revenue Performance- Govt. of India (National) Pollution Abatement Outstanding Government of Kerala Achievement Award

1999 - 2000 2000 - 2001 2001 2003, 2004 & 2005 2003 & 2004 2008 2009-2010 2010 2010

FACT MKK Nair Memorial Productivity Award Best Performing PSU Factories & Boilers, Govt. of Kerala Outstanding Achievement (entrepreneur Department of Industries & Commerce performance)

Outstanding Achievement (Pollution Abatement) Department of Industries & Commerce Source: http://kmml.com/php/showContent.php?linkid=16&partid=1

2010 Fig: 3. 4

Special Award for Exports from chemicals and Allied Export Promotion
Council (CAPEXIL) 3rd time consecutively.

3.1.5. BUSINESS PERFORMANCES The KMML strives to become the market leader of titanium products and an asset to its stake holders. Delighting customers with world class products and services at competives prices, perceiving the serenity of the environment and maintain the health and safety of its employees and other persons involved with its activities are its core values. To enable it to achieve the said core values KMML shall be: Committed to continually improve the effectiveness and efficiency of the integrated management system. Committed to comply with all applicable legal and other requirements.
18

Committed to prevention of pollution, waste reduction, and resource conservation. Committed to prevention of occupational illness and incidents by managing risk in work place. Committed to continual improvement of processes by setting and reviewing integrated objectives, targets and programmes. Committed to achieve continual improvement in the areas of optimization of processes, minimization of unit cost and maximization of production and market revenue.

Committed to be ethical, air and transparent in every dealing with all its stake holders. 3.1.6. STRATEGIC PLANS PROGRAMMES AND LONG TERM OBJECTIVES

The KMML has various expansion plans for its future. Some of the future plans of KMML are to expand its existing Ilmenite Beneficiation Plant (IBP) to 50,000 units per annum capacity utilization. KMML also aims at expanding the Titanium Sponge Plant which is jointly run by the ISRO DRDO, to 500 metric tons in collaboration with AVISMA technology. The company also aims in introducing a mineral research institute, titanium plant oxygen plant, a new fluid dispend boiler, a Nano pigment production, titanium oxychloride production, filter plus plant iron oxide cake production and additional chlorinators and titanium tetra chloride plant. KMML also aims at an enhancement of mineral separation plant and the implementation of social accountability standards.

3.2. ORGANISATION STRUCTURE 3.2.1. CORPORATE STRUCTURE Chief Managing Director is the top official in the management of KMML. MD is assisted by two General Managers. There are Joint GMs, Deputy GMs, Assistant GMs and Managers in various departments or sections of the company.

19

Source: P&A Departmet, KMML

Fig: 3.5

20

3.2.2. BUSINESS AND DEPARTMENTAL STRUCTURE

As in every organization KMML also has number of separate departments and their respective executive heads. The functional departments of an organization function or activities are categorized into different groups. The application of functional form of department means grouping activities into departments of production, marketing, human resource development and finance. Each department specializes in its own area of production. Functional department in KMML Production department Marketing department Finance department Material department Personnel and Administration department Fire and Safety department Data processing department Technical department Project department Maintenance department Research and Development department

21

Production Department Structure

DGM (Production)

AGM (Utility)

AGM (PRODUCTION)

AGM (Utility)

AGM (Utility)

AGM (PP/PB/IC)

Deputy Manager (utility)

Plant Manager 400\500 Deputy Plant Manager Plant Engineer Assistant Plant Engineer Plant Engineer Assistant Plant Engineer

Plant Manager 300 Deputy Plant Manager Plant Engineer Assistant Plant Engineer

Plant Manager 100/200 Deputy Plant Manager Plant Engineer Assistant Plant Engineer

Plant Manager IBP Deputy Plant Manager Plant Engineer Assistant Plant Engineer

Plant Manager ARP Deputy Plant Manager Plant Engineer Assistant Plant Engineer Plant Engineer Assistant Plant Engineer

Operators/ Technicians

Workers

Source: Production Department, KMML

Fig: 3. 6

22

Maintenance Department Structure

DGM

AGM (Mechanical)

AGM (Electrical)

AGM (Instrumentation)

Manager

Manager

Manager

Manager (Civil)

Deputy Manager

Deputy Manager

Deputy Manager

Deputy Manager

PE

PE

PE

PE

APE

APE

APE

APE

Worker

Worker

Worker

Worker

Source: Maintenance Department, KMML

Fig: 3.7

23

Finance Department Structure

Executive Director

Assistant General Manager

Manager

Deputy Manager

Accounts officer

Assistant Accounts Officer

Accountant

Source: Finance Department, KMML

Fig: 3.8

24

Personnel and Administration Department Structure

GM (P&A)/EDP

JGM (P&A) - HOD

M (Legal)

Medical superinte ndent DM (P&A)

Manager (Welfare)

POs

SO

AO Canteen

PO

APO APOs Security Inspector Canteen supervisor Male Nurse Assistants Security Guards Cook

Office attendants

Attendan ts

Assistant cook

Dresser Cum compoun der

Assistants

Workers

Source: P&A Department, KMML

Fig: 3.9

25

Marketing Department Structure

HOD

AGM

Manager

Deputy Manager

Marketing Officers

Assistant Marketing Officer

Senior Grade Assistant

1st Grade Assistant

2nd Grade Assistant

Junior Grade Assistant

Office Attendant

Source: Marketing Department, KMML

Fig: 3. 10
26

Research development Department Structure

Deputy General Manager ( TS & RD)

Assistant General Manager(TS & RD)

Manager (Lab)

Manager (TS)

Deputy Manager

Deputy Manager

Deputy Manager

Scientific Officer

Engineer

Scientific Officer

Assistant Scientific officer

Assistant Engineer

Assistant Scientific Officer

Analyst

Analyst

Worker

Worker

Source: Research and Development Department

Fig: 3.11

27

Materials Department Structure

HOD (Materials)

Purchase

Store

Manager

Deputy Manager

Deputy Manager

Stores Officer

Purchase officer

ASO

APO

Charge man

Peon

Assistant Charge man

Worker Source: Materials Department, KMML Fig: 3. 12

28

Fire and safety Department Structure

Deputy General Manager

Deputy Manager (Fire)

Deputy Manager (Safety)

Safety Officer

Leading Fireman Assistant Safety Inspector

Fireman

Driver Fire Tender

Safety Inspector

Worker

Worker Fig: 3.13

Source: Fire and Safety Department, KMML

29

3.3. FUNCTIONAL ANALYSIS 3.3.1. PRODUCTION DEPARTMENT

The department is equipped with the latest state of art technologies. It strives to accomplish a high standard by achieving technical excellence in every phase of production. The plant works 24 hours a day with three shifts. Occasionally the plant is closed for maintenance work. Production department comprises two divisions: i. ii. Production planning division and Production division.

Functions of production department are to set standards and targets for each section of production process, to monitor quality and quantity of products coming off from a production line, to maintain a production schedule, so that other departments could know about quantity of product produced in a specific period and to maintain a proper co-ordination between other departments in KMML. Production Process Raw Ilmenite is chemically processed to remove impurities such as leaving the pure white pigment. KMML is Indias first and only manufacturer of Rutile grade titanium dioxide through chloride process. The chloride process produces Titanium dioxide products by reacting titanium ores with chloride gas. The chlorides of impurity metals are removed from Titanium Tetra Chloride through various processes the recovery of Titanium dioxide. It is further purified by distillation to obtain pure Titanium Tetra Chloride in liquid form which is stored in storage vessels. Titanium Tetra Chloride is vaporized, preheated and oxidized with oxygen in the oxidation plant to produce raw titanium dioxide at high temperature. Beneficated Ilmenite (BI) is the raw material for the Pigment Production Plant. BI from IBP is chlorinated in the chlorination plant to produce Titanium Tetrachloride. Chloride reacts with Titanium dioxide and other metallic oxide impurities in BI, in th presence of petroleum coke at a temperature of 9000 degree Celsius in a fluidized bed chlorinator to produce chlorides of Titanium and other impurity metals. The raw

30

titanium dioxide is then surface treated with various chemicals, filtered and washed to remove the salts, sent to the dryer and then to the microniser in the Surface Treatment and Finishing Plant. The Titanium dioxide pigment is subsequently packed. The plant uses recycling and regeneration methods at various levels of processing which ensures negligent pollution. i) Production Division Manufacturing plant at KMML comprises Mineral Separation (MS) unit and Titanium dioxide Pigment (TP) unit. The MS unit is where the separation of Ilmenite, Rutile, Leucoxene, Monazite, Silliminite etc. from the beach sand takes place through various stages in the Wet Concentration plant, Dry plant, Dry mill, Rutile and Zircon Recovery plant. The unit employs gravitational, magnetic and high tension electrostatic techniques for separation of minerals from sand. The TP unit is where the raw Ilmenite obtained from the MS unit is taken for further processing through various stages in Ilmenite Beneficiation plant, Acid Regeneration plant, Pigment Production plant, Oxygen plant and Utility section. Titanium dioxide is manufactured in KMML using chloride route. The TP unit in KMML comprises the following units: Ilmenite Beneficiation Plant (IBP) Acid Regeneration Plant (ARP) Chlorination Plant (Unit 100/200) Oxidation Plant (Unit 300) Surface treatment & Pigment Finishing Plant (Unit 400/500) Oxygen Plant Utilities

a) Ilmenite Beneficiation Plant The plant functions on the basis of the BCA Cyclic Process Technology supplied by M/S Benilite Corporation of America. The plant is subdivided into 6 major sections: Raw material and Reluctant handling
31

Roasting & Cooling Leaching Calcination & Cooling Tank farm

The raw Ilmenite which contains 58-60% TiO2 is processed to obtain beneficiated illmenite of 90 to 92% TiO2. This is the raw material for pigment production plant. The ferric oxide in the raw Ilmenite is subjected to high temperature reduction to ferrous oxide in the presence of petroleum coke at a temperature of 900 t0 950 degree Celsius in the roaster. The reduced Ilmenite is then cooked and sent to digesters where it is leached with HCl. The spent leach liquor is sent to storage tanks. The leached Ilmenite after washing and filtering is calcinated to get Beneficated Ilmenite. b) Acid Regeneration Plant The spent leach liquor from pre-concentrator is processed in the spray roaser in which liquid spray entering furnace is heated using burning oil. The spent liquor then decomposes to metallic oxides and HCl. The HCl acid vapor is first cooled in the preconcentration and then absorbed in the wash liquor generated in the IBP. c) Pigment Production Plant The pigment plant is designed and installed based on the chloride process being successfully operated by Kerr McGee Chemical Corporation of USA at Hamilton, Mississippi. There are five major sections in the plant: 1. Raw material handling 2. Chlorination 3. Oxidation 4. Finishing 5. Chemical Storage Unit - 100 Unit 200 Unit 300 Unit 400 Unit - 500

Raw material handling: The solid raw materials, Beneficated Ilmenite and Petroleum Coke are stored here.
32

Chlorination Plant: Ilmenite is reacted within the chlorinator by chlorination process to produce TiCl4 vapor and other metallic chlorides, at about 800 to 900 degree Celsius. The metallic chlorides present in BI are mostly removed as solids initially and the balance impurities are removed by adding special treating oil. The purified TiCl4 is the product of U 200. Oxidation Plant: Aluminum chloride is added to liquid TiCl4, vaporized, preheated and oxidized to produce raw pigment grade TiO2. The pigment and sand are made into slurry and classified to remove most of the sand. The slurry of sand and raw pigment of TiO2 is the product in this unit. Finishing Plant: The raw pigment produced in oxidation section in slurry form containing sand is the main feed to finishing section. The pigment is treated with chemicals and size is reduced to impart certain qualities and properties apart from removing all traces of sand. The processes here include sand milling, treatment, filtration & drying, micronisation & Cooling, bagging/Palletizing. The section is designed to produce 11 grades of pigment. These grades can be grouped into 3 major categories dry hide grades, gloss grades, plastic / Paper grades. Chemical storage: The various chemicals required are stored here fed to the finishing section as required. d) Oxygen Plant The plant supplies about 99.98% pure oxygen. The air which is taken in the oxygen plant is purified, liquefied and separated into oxygen and nitrogen. e) Utilities The unit includes boiler plant, water treatment plant, air compressor station, brick making plant, effluent pumping station, furnace oil receipt, storage and transferring section. ii) Production planning division Assistant General Manager is the head of the division. He along with his team performs the following functions:

33

Planning Based on targets set by Board of Directors, fixes each days production targets. Implementation Planning division hands over per day target to production division for implementation. Monitoring It is done by collecting data on each day production rate and comparing it with target rates. Feedback Feedback is given to the head of the division as well as to the production division.

3.3.2. MAINTENANCE DEPARTMENT

The maintenance department is categorized into 4 divisions: a) Civil b) Mechanical c) Electrical d) Instrumentation Functions of Maintenance Department To carry out maintenance works in the plant To carry out preventive measures to avoid machine breakdown Ensure a safe workplace and to keep the various utilities on To install new equipment, design, modify and fabricate a wide variety of manufacturing and processing equipments Objectives of maintenance department: Optimize the use of equipments through effective maintenance management methods. Provide accurate data for maintenance and construction programs. Systematically identify maintenance needs and deficiencies.

34

Monitor and document corrective actions, project expenditure and accomplishments.

The maintenance department is headed by the Joint General Manager. He is assisted by an Assistant General Manager. The Electrical, Mechanical, Civil and Instrumental manager has Deputy Managers under them the Managers of all the four sections then the Project Engineers and the Assistant Project Engineers. The department has six centres: a) M1 IBP/ARP/SU Area Maintenance: It looks after the mechanical maintenance works in the IBP, ARP and service units comprising of boiler, water treatment plant and compressed air station. b) M2- PPP Area Maintenance: It is concerned with maintenance works in the pigment production plant Chlorination plant, Oxidation plant and Pigment finishing plant. c) M3- Central Maintenance Repair Shop, Vehicle Maintenance and Maintenance Planning: It looks after general maintenance of workers of the plant including maintenance of vehicles, material handling vehicles, cranes etc. and planning. d) M4- MSDs and Electrical Repair Shop: It handles electrical supply system, electrical maintenance works for all the plants and other areas. e) M5- Instrumentation Repair: It controls the instrument maintenance work of all plants. f) M6 Civil Section: It is concerned with civil construction and maintenance of all plants.

3.3.3. FIRE & SAFETY DEPARTMENT

The safety department is supported by one safety officer, one safety inspector and three technical officers whereas fire department is assisted by a fire officer, leading fireman, and fireman and fire tender drivers. The department carries out the following activities: Routine plant inspection
35

Plant safety inspection Issue of safety work permits Coordinating and organizing safety committee meetings Safety education and training Organizing safety promotional activities Preparing and updating safety manuals Coordinating safety audits and surveys

Functions of Fire and Safety Department are: a) Assist and advise the management The department assists and advises the management in the fulfillment of its obligations with respect to various health, safety and environment factors. b) Accident analysis It can be agency wise analysis, body part injured analysis, frequency rate of accidents analysis, severity rate analysis etc. c) Mock drill In order to handle the immediate situation an emergency preparation is very much essential. They train the employees by creating accidents artificially. d) Statutory approval or license Required statutory approval and license are obtained by the safety department from time to time. e) Plant inspection The safety inspector and assistant plant engineer carry out routine safety inspection. The inspection list is sent to the concerned department and does the further follow up. f) Accident reporting and Investigation Accidents are reported to the dispensary by the supervisor of the injured person through first accident report-form A1. Accidents are reported to management by supervisors and Section Head through detailed accident report form. In case of
36

reportable accidents as per Factories Act, the factory manager sends the report to the statutory authorities in the prescribed form. All reportable accidents are investigated by the concerned supervisors. Selected ones are investigated by Safety department and for serious accidents; the management appoints a committee or a senior level person for investigation. g) Safety Promotion Employees are encouraged to participate in State or National level competition. Safety essays, slogans and quiz competition are organized. Interdepartmental competition on posters, housekeeping, personal protective equipment wearing and lowest accident rate are organized every year for process plant and workshops. h) Safety committee There is a well-established central safety committee having equal number of representatives from management and workers-8 from management side, 8 from workers and 8 from trade unions. i) Job safety analysis The department is also concerned with the analysis of jobs and taking safety measures. j) Health and hygiene There should be pre-employment and periodical health checkup for employees. There is an occupational health center in the facility where the service of qualified medical officer is available.

3.3.4. FINANCE DEPARTMENT

Finance department is the core part of any organization. It deals with both the acquisition as well as allocation of funds. The finance department in an organization is responsible for maintaining fair and just accounting, working capital management, long term funding decision making, costing etc.

37

The finance department is headed by Deputy General Manager (finance) who is assisted by a Manager, Deputy Manager, accounts officer and other officers KMML has two independent production units & for each unit the company is maintaining separate books of accounts. The units are called as Titanium pigment (TPU) and Mineral Separation unit (MSU). Titanium Pigment Unit is a chemical factory, under the Factories Act 1948, whereas Mineral Separation Plant is a mining unit under the Mining Act. The main function of this department is to collect all the receipts and make all the payments and also to record all the transactions and prepare the final accounts. The major functions of the finance department are as follows: To maintain clear and perfect accounting system Preparation of P&L account, balance sheet, cash flow statement, fund flow statement Working capital management Carrying out activities pertaining to short term and long term requirements Dealing with financial institutions with matters regarding salary reimbursement, credit arrangement, collecting payment from customers etc. is also the function of the finance department. The finance department consists of two sections: a) Accounts section b) Audit section Accounts section Accounting Policy of KMML Convention The final statement is prepared under the historical cost convention in accordance with applicable accounting standard that was relevant to presentational requirement of the Companies Act 1956. Fixed Assets

38

Fixed assets are stated at cost of acquisition and additional if any, less accumulated depreciation, is provided at rates and methods prescribed in the schedule XIV of the Companies Act on straight line method in respect of plant and machinery and railway sliding belonging to TiO2 pigment unit and written down value method in respect of all the asset of the company. The depreciation is calculated on the basis of Companies Act and for income tax audit it is added to the profit and recalculated as per the audit rules. Excise duty

Excise duty on manufactured is accounted for as and when goods. Are dispatched is accordingly no provisions is made in respect of duty due on goods manufactured, but not dispatched nor included in valuation of stock. Gratuity

Gratuity liability and leave is accounted on the basis of actuarial valuation. Inventory System

Work-in-progress is valued at the cost and stock of raw materials, chemicals, fuel and stores are valued at weighted average cost on month Functions of accounting section KMML maintains a clear and perfect accounting system. The main activity of the Finance Department is Working Capital Management. Preparation of Fund Statement, Cash Flow Statement, Balance Sheet, Profit and Loss Account etc are also the activities of Financial Department. Secretarial work relating to Board comes under the review of the Finance Department. Most of the activities carried out by the Finance Department are pertaining to long term and short term requirements of the operation, closing purchase bill, maintaining the account of contractors, subcontractors, income tax deduction, salary discrepancy, dealing with the financial institutions with imports and exports are also the functions of the Financial Department. Purchase Are Recorded And Analyzed

The Finance Department of the company keeps the accounts of purchase of spare parts, chemicals etc and accounting entries are made in the books of accounts of the company on day to day basis, on the basis of bills and
39

supporting vouchers of each item. Each voucher is essentially numbered to avoid discrepancy. The company makes only miscellaneous purchase, as the main raw material is mineral sand. The department analyses the details of purchases afterwards. Salary Section and Pay Division

The main function of the department is preparation and disbursement of salary of officers, members of office staff and workers. The department keeps salary register pertaining to each of the above sections, which facilitates charges in salary due to granting of annual increments and deduction due from the salary. The disbursing of salary is crediting the amount to the respective bank account of the employee. The department is sending a detailed list of salaries; they have arranged an ATM counter of ICICI Bank in the company compound. Certain employees are paid by cheque. The department is maintaining sub ledgers for deductions made in the salary such as PF, Insurance Premium Advance, and Income Tax etc. Another important function is computation of income Tax. It is deductions and prompts remittance to IT Department. Sales and Revenue Accounting

The department is calculating and paying sales tax and central excise duty to the concerned Government every year. The Government is earning a total income of Rs.44 crores and Rs.14 crores by way of excise duty and sales tax duty from the company. Cash and Bank Transactions

The department does all the matters relating to the day-to-day cash transactions. They receive and make payment for purchase and sales. The company is allowed to collect cash up to the limit of Rs.20000/- is carried out by cheque or DD as per direction of the Tax Authority. Costing

Annual budget and cost sheet is prepared at the outset of every year and on the basis of the department fixes the floor price of each product of the company. Calculation of Depreciation

The department calculates the depreciation. Depreciation is provided on

40

straight-line method in the case of plant and machinery of Titanium Pigment Unit and written down value method in case of other assets of the company.

Major Banks of KMML ICICI State Bank of India State Bank of Travancore Indian Overseas Bank Audit section Audit can be internal or external. The internal auditing section is in charge of periodical audit. External audit includes: statutory audit, account general audit, inspection audit, sales tax audit, income tax audit and cost audit.

3.3.5. Personnel and Administration Department

Human resource is one of the most valuable resources as far as a company is concerned. The management of man is very important and challenging job. The proper utilization of this resource will indicate whether a company is successful or not. The story of KMML lies in the personnel and administrative departments ability to handle the human resource. Personnel Department is concerned with the peoples dimension in organization. The sincerity and dedication of the employees in KMML is a major success factor. With a full-fledged Human Resource department, regular training and refresher courses are part of the company life. Apart from skill betterment, this course inculcates quality consciousness, safety awareness and contributes to personality development. There are around 1121 employees in the

41

company. Join General Manager (Personnel and Administration) is the head of the department. Functions The major functions of personnel department are as follows: Man power planning. Recruitment and selection. Training & development. Promotion & transfer Retirement and superannuation Grievance handling. Labour Welfare Activities. Discliplinary Proceedings.

MAN POWER PLANNING It is one the most important activities carried out by the P&A department. The primary objective is to ensure the availability of the required skill and avoid/minimize redundancies. To achieve this objective, the management forecast man power needs for the job requirement and explores various sources of manpower supply. Earlier the man power requirement plan in KMML was established based on the work carried out by the Engineering Consultancy (India) Ltd. The company has now decided to preview manpower requirements and entrusted Kerala State Productivity Council to undertake the work-study and job evaluation so as to enable the company to arrive the required manpower in future

RECRUITMENT AND SELECTION KMML depends on Technical Employment exchange, district

employment exchange, and notification in company notice board and PSC for recruitment. Direct recruitment is also possible. For this, KMML gives advertisement through Malayalam and English newspapers published from
42

Kerala and other states of south India. Employees are classified into various levels: Senior executives Middle executives Junior level Workmen

SELECTION Various tools and techniques are adopted by the firm for the selection of candidates for various categories of post. Application blanks are employed for extracting the detailed bio-data of candidates. The company calls the eligible candidates for interview. Practical and written test are conducted for selection to technical post. For the post of clerical staff, written test and interview are conducted. For direct recruitment, selection tests are conducted by Kerala State Productivity Council, LBS and CUSAT. Final selection is made on the basis of performance in the interview conducted by a panel consisting of BOD, MD, a government representative and a subject expert. It is compulsory that for all vacancies there must be medical examination to check the physical fitness of candidates.

TRAINING AND DEVELOPMENT KMML gives a lot of importance for its human resources. The company believes that the success depends upon providing necessary training to the employees. Training is provided to each and every employee in the organization. The full responsibility of the training and development at KMML rests on the shoulder of Personnel and Administration Department. The training requirements of the employees are designed under the guidelines of the ISO. KMML seeks training needs identification in the specified form from all functional departments responsible to provide such identification on annual basis before 15 March every year for preparation of annual training plan. In case a training need for an individual crop up suddenly, the concerned department head prepares the training needs identification form and forward it to
43

administrative officer who plans for the training by taking into account factors such as:. Training already acquired. New skills to be imparted. Qualification required. Motivation or communication required.

TYPES OF TRAINING Internal training External training Apprenticeship training

PERFORMANCE APPRAISAL SYSTEM Performance is evaluated by an annual appraisal system. It is the traditional rating system. Rating is done against 5 point scale. Job evaluation involves 3 parts for workmen: Job knowledge Effectiveness Personal attributes

The personnel appraisal forms in respect of employees in various sections are being separately sent by Human Resource development department to respective head of the department for getting the report completed and forward the same to the personnel manager with remarks of assessing the reviewing officers. Trade Unions in KMML: There are four trade unions in KMML 1)Titanium complex employees union (RSP(B)) 2)Titanium complex employees congress (INTUC) 3)KMML Titanium employees union(CITU) 4)KMML Employees union(STU Muslim League)

44

WORKMEN CLASSIFICATION: 1. Permanent Employees: There are about 245 officers and 788 workers working in the Tio2 pigment plant as permanent employees. 2. Employees Engaged On Contract Basis: These employees work on contract for a limited period of time say one year or six months on specific terms and condition fixed by the company. They have no preference for future employment in the company. There are around 400 such workers. 3. Temporary or seasonal worker: These workers are employed when the work load is more on certain season due to the increase in demand; more workforces are needed to meet the production. In such cases temporary workers are engaged. The services of such employees are dispensed with as and when the need is satisfied. 4. Casual labour: Casual labourers are employed from people who lost their land due to acquisition by KMML; they are engaged first as casual workers and then absorbed as permanent employee when vacancy arises. There 10 casual workers at present in KMML. 5. Apprentices: Apprentices work for a period of one year as part of their training programmed as per Apprenticeship Act.

WORKING HOURS The daily working of the company is on shift basis. There are 3 shifts for plant and general shift for administration. The timing is as follow: A Shift-6 am to 2 pm. B Shift-2 Pm to 10 pm. C Shift-10 Pm to 6 pm. General-9 am to 5 pm.

3.3.6. MARKETING DEPARTMENT

The different activities of the marketing department include: Sales

45

The department deals with both indigenous and export sales. Indigenous sales are carried out in two forms: Direct - The Company sells its products directly to customers. Asian paints, Berger paints are two such companies engaged in direct buying. Selling via stockiest - The Company sells the products to stockiest who in turn sell the product to final customers. KMML exports to more than 50 countries including USA, Italy, Spain, Greece, Sri Lanka, China, Switzerland, Thailand, Nigeria, Peru, UK, Australia, Egypt etc. sales is carried out in the form of three currencies USD, Euro, Pound Sterling and it takes place on three basis: Free On Board, C & F, CIF Annual Sales of TiO2 for the past five years are given below: Year Domestic Sales of TiO2 (MT) 2008 - 09 2009 - 10 2010 - 11 2011 - 12 2012 - 13 31787.15 33013.55 6142 3998.68 1138 Export sales of TiO2 (MT) 6678 4284.4 30758.52 20727.56 14077.585 Fig: 3.14 909.36 717.5 1822.54 1893.315 1680.913 TiCl4 sales (MT)

Source: Marketing Department, KMML Some of the major customers of KMML are: Asian Paints Berger Paints Hindustan Lifecare Limited Jenson & Nicholson Camlin Plastic Chemix Industries Sanderson Chemicals

46

Mega Meditex

Product promotion Some of the promotional activities adopted by the company are the annual stockiest meet where the company introduces new grades of titanium pigment, advertisements in trade journals and industrial magazines, participation in production shows and overseas exhibition, brochureand interactive CD release Handling customer complaint The complaints received from customers are registered by KMML and acknowledgement is sent to customers. The details of the complaints are entered in Customer Complaint Register. The particulars about the progress of investigation and nature of disposition are updated in the register.

3.3.7. TECHNICAL DEPARTMENT The department acts as a third agency to the production and maintenance department. Technical wing takes charge of R&D, Quality Control lab and Technical Services. Research and Development KMML maintains a fully equipped R & D facility in the area of pigment and paint technology with a view to establish world class products and competitiveness. The facility undertakes research, development and product improvement. Scientists and engineers continuously pursue innovative technologies in the area of TiO2 pigment, quality improvement and other related products. Quality Control Division In order to make the products move in the foreign market and to make their products achieve the status of world class products, KMML maintains the quality standards as per ISO 9002 1994 and got certified in the yaer 07-07-2000. The quality department ensures:
47

Raw material inspection Process inspection Finished pigment inspection

Raw materials are inspected for TiO2 content, silica content, level of impurity etc as per the specification fixed based on demand. Each supplier should send their quality test report along with the materials. At KMML, all these materials are tested for desired qualities and if it doesnt match with test report provided by suppliers then it will be rejected. Process inspection is done by both conventional and instrumental methods. Samples are tested at both main lab and spot lab. Finished pigment is also tested for qualities like colour, dispersion, Ph, oil absorption, gloss strength and resistivity. If there is any fault then the whole batch will be reprocessed.

3.3.8. MATERIALS DEPARTMENT All functions relating to purchase and storage of materials for the company is carried out by this department. There are around 27000 raw materials used by KMML. The main functions of material department are as follows: Purchase Storage Inventory control

Purchase department Purchase department is concerned with the procurement of the required raw material. The different terms of payment include: Direct payment Through banks Advance payment Letter of Credit

48

Some of the major raw material suppliers are India Carbon, NPF Petroleum, Sree Menakshi Agencies, Indian Rare Earths Ltd, Binani Zinc, Travancore Cochin Chemicals, FACT, BP, Indian Oil

The purchase process in KMML can be depicted as follows:

Approval

Price

Order to supplier

Quotation

Material Receipt

Enquiry

Inspection

Intend

Issue to department

Source: Materials Department, KMML

Fig: 3.15

Stores Department Store Section deals with receiving the material, inspection of material, storage and preservation, proper classification and codification of material, material handling, issue and dispatch, stock records, store accounting and stock verification report preparation. Various documents are prepared by the stock section for the proper functioning of the department the documents maintained is as follows: Stores inwards book: On receiving any material to the store, it is entered in a document called stores inward book (SIB).

49

Inspection of goods: On receiving any material and preparation of SIB inspection request is send to the concerned technical office for technical evaluation and reports are prepared on this basis. Store received note: After the preparation of SIB and inspection of goods or materials, Stores Received Note (SRN) is prepared. This is the document showing that the, material received is accepted and payment can be made for it. The SRN is sent to the Finance-department for payment. Four copies of SRN are maintained in KMML. Usually the company gets a credit facility for 45 days. Materials issued note: Any material is issued from the store only after receiving a material requisition or Material Issue Note (MIN) .MIN contains all the details regarding the material as well as the indenter. Stock transfer note: For transfer of materials between store or contractors, for transfer of material between store and section prepared, it contains details such as material code, cost center, material description, unit and quality. It should be mentioned that from which section and to which section is the transfer-taking place. Material return note: Sometimes material issued from the stores may be returned. In case Material Return Note (MRN) is prepared. It contains details such as the name of the department from which the material is returned, value, quality, code, unit, balance and reason for return. Bincard: Bincard is a document attached to bin and it contains the quantities details of material received, issued and closing balance.

50

3.4. Organizational Analysis

3.4.1 SWOT Analysis

S
Strong brand image. Monopoly nature of business. Price leadership. Availability of cheap and best quality raw materials. Good R & D department Eco friendly and socially committed. Experienced, highly efficient and competent manpower. Cordial relationship between management and employees. Quality of product comparable with world-class standards.

W
Policy of the government. Excess of workers. Lack of motivation. Underutilization of resources. Delay in decision making. Weight variation due to atmospheric effect on the packed product. External / Political / Government interference in company affairs. Trade union dominated firm. Lack of captive power generation. Lack of sufficient land for expansion, storing, hazardous waste disposal etc.

O
Demand in domestic as well as international market. Low competition, easy to be a market leader. Steady growth of paint, plastic, ink and cosmetics industries. Unexplored value addition sector like Titanium metal, Zirconium compound. Technical collaboration with ISRO in Titanium Metal Production. Faster growing Asian market where manufacturing facilities are limited.

T
Lower sales realization, giants like DUPONT, Kers-Mc Gee Ishihara and Crystals. Duplication chances by stockists. Existing infra-structure needs to be replaced. Policy change of Central and State Government regarding sand mining. Chances of being privatized in future. Cost of production will be higher due to price hike of petroleum products.

Fig: 3.16 Source: P&A Department, KMML

51

S Strength The availability of cheap and best raw material: The major source of raw material is black sand. It is available at Chavara beach near KMML. And also the mineral sand consists of Ilmenite, Rutile, Zircon, Silminate. Highly technical oriented: All the activities of the organization are computerized and modern. Modern machinery and equipment are implemented to conduct the manufacturing process. Eco friendly and socially committed: The product manufacturers in the organization are highly socio oriented in the sense that the quality of the product will be high and does not harm the environment. Transparency and accountability are specifically noted. The cordial relationship with the management and the employees: At KMML the relationship between the management and the employees is very intensive. It means that the emotions and feelings of the employees are hypothetically considered by the management. Financial stability with retained earnings for meeting future expensive project is a strength of KMML. Good R & D department: The R & D programs of the organization are admirable. A new venture for manufacturing Titanium metal is about to commission.

W Weakness Over employment: The number of workers in KMML is excess than what is

required. Unnecessary apprentices, temporary employees and casual workers are employed in the organization. Trade union dominated firm: The unnecessary interference of trade union is a drawback in the organization. It affects the smooth working of the organization. Delay in decision making: A complex organization structure causes delay in decision making. It is also very time consuming.

52

Under-utilization of resources: All the resources of the organization are not used due to mismanagement, which results in wastage. It is not suitable for such an organization. Policy of the government: The fluctuating governmental policy adversely affects the organization. The company needs to get more support from government. Lack of motivation: Motivation is the primary aspect of any business organization. The company is reluctant to make the employees emotionally involved in their work.

O-Opportunity Worldwide deposit of Ilmenite is decreasing day by day due to over exploitation. Whereas in India only 10 % of total Ilmenite deposits are utilized. Steady growth in users in the past few years. This implies that there will be steady growth in the consumption of Titanium Dioxide pigment in future.

T Threat Chances of breakdown of machineries: Most of the equipments in the pigment plant are about 20 years old. The chances of breakdown in future are high. Since Titanium Dioxide is included in the Open General License (OGL) the import duty on OGL items was reduced to 0% by the end of 2006. This helps the foreign countries to market their products at cheaper rate. Cost of production is high: Cost of production will be higher due to price of raw materials like petroleum coke, burning oil and LPG will grow higher in the future. Chances of over exploitation of resources: Allowing private parties to mine minerals in the future may be possible. This will result in over exploitation of resources and also have foreign competitors to set up their plants in India.

53

OBSERVATIONS Some of the observations made in the organization during the organization study are listed below. Though it is the only integrated plant in world producing TiO2 as a public undertaking, political interference resists the company to become a giant in the industry. The inability of the management to control effectively the resistance raised by the local people in some radical issues will be great challenge to the company. A complex organization structure exists in KMML. This leads to excessive delays in decision making and requires lot of paper work. The increase in the export market indicates that the company maintains a better relationship with foreign customers. The company has adopted no special strategies to compete with the foreign competitors. Since there is an absence of storage facilities for the chlorine gas which is liberated in the oxidization plant, the company has to simultaneously work both the oxidation plant as well as the chlorination plant. If any of them break down the entire production work will stop. CONCLUSION Kerala Minerals and Metals Limited (KMML) under the Government of Kerala is the Indias first and only manufacture of Rutile grade Titanium dioxide pigment using Chlorides route. It has won National Acclaim for its impressive performance. It produces about seven grades of titanium dioxide pigment and its products range includes Titanium Tetra Chloride, Ilmenite and Rutile etc. KMML has monopolistic position in the Rutile Titanium Dioxide pigment industry in India. But the firms position has been severely hit by zero percentage cut in import duties of TiO2 pigment in 2006. Moreover its existence will be severely affected by the chances of issuing closing orders by the Pollution Control Board of India. Like any other organizations, it also tries very hard to sort out its weakness and designs new strategies for converting the organization into an ever-flourishing organization. Success of a company depends on the strategic management of all the available resources. External and internal environment decide the growth of the company.

54

BIBLIOGRAPHY
The Annual Report The Kerala Minerals and Metals Ltd. 2011-2012 KMML, http://kmml.com/php/showContent.php?linkid=18&partid=2, accessed on April 15th, 2013 Record output by KMML,
http://www.thehindubusinessline.in/2003/04/09/stories/2003040900521700.htm,

accessed on April 19th, 2013 Titanium and the titanium dioxide industry, http://www.rsc.org/images/PDF1_tcm18-40441.pdf, accessed on 23rd April 2013
USGS 2010 Minerals Yearbook- Titanium, http://minerals.usgs.gov/minerals/pubs/commodity/titanium/myb1-2010-titan.pdf,

accessed on April 23rd 2013

PIL seeks probe into ilmenite deal - Times Of India, 2013,

http://articles.timesofindia.indiatimes.com/2013-03-18/kochi/37814156_1_kmmlmineral-sand-ilmenite, accessed on May 5th 2013

55

ANNEXURE I Balance sheet as on 31st March 2011 Particulars

Shareholders Funds Share Capital Reserves & Surplus Deferred Tax Liability Total Application of Funds Fixed assets Gross Block Less: Depreciation Net : Block Capital work in progress Investments Current assets, Loans and Advances Current Assets Inventories Sundry Debtors Cash and Bank balance Other current assets Loans and advances

As Per schedule
A B C

As on 31/03/2010 (Rs in Lakhs)

3093.27 46188.50 1232.85 50514.62

As on 31/03/2011 (Rs in Lakhs)

3093.27 45174.12 1184.47 49451.86

N 39210.24 17326.84 21883.40 15816.38 37399.78 3517.60 33707.00 15903.03 17803.97 12661.25 30465.22 17.60

F G

H 6810.45 6421.85 12144.93 559.83 10925.71 36862.77 6735.46 4709.92 13808.32 707.91 7073.93 33035.54

Less: Current Liabilities and Provisions Current Liabilities Provisions

D E 24897.30 2368.30 27265.53 9597.24 11667.93 2398.57 14066.50 18969.04

Net Current Assets Significant Accounting Policy Notes Forming Part Of Accounts S T 50514.62 49451.86

56

57