AN ORGANIZATIONAL STUDY ON KERALA MINERALS AND METALS LIMITED, CHAVARA

Submitted in partial fulfillment of the requirement for the award of the Degree of

Master of Business Administration

of Mahatma Gandhi University, Kottayam, Kerala Submitted by

JIJO THOMAS
ENTROLLMENT NO : COURSE CODE : CC21

Under the guidance of

Mr.Jayan

BSS INFORMATION TECHNOLOGY MISSION THYCAUD MG UNIVERSITY OFF CAMPUS ACADEMIC CENTRE

ACKNOWLEDGEMENT

First of all I thank Almighty God who has been with me throughout this endeavour and helped me in completing this project successfully. I have great pleasure in expressing my sincere and grateful thanks to my internal guide Mr. John for continuous guidance throughout this project. I owe my sincere and grateful thanks to the external guide of KMML, Chavara, Mr. Kochoommen (Asst. Personal Officer) for guiding me to this project work. Last but not the least I thank all my faculty members, all employees and managers of KMML, my parents and my friends who have been a source of inspiration and also helped me throughout this project.

Jijo Thomas

DECLARATION

I, Jijo Thomas hereby declare that the project work entitled An Organisation Study at Kerala Minerals and Metals Ltd. is a record of original work done by me under the guidance of Internal Guide, Mr. Sasikumar. I also confirm that this project study has not been submitted before.

CERTIFICATION

This is to certify that Mr. Jijo Thomas, Register No... has undertaken an organizational study on Kerala Minerals and Metals Limited, Chavara and this report is the result of original work done by the candidate.

This project report is partial fulfilment of the requirements for the award of the Degree of Master of Business Administration (M.B.A.) from the Mahatma Gandhi University, Kottayam.

Signed by

Counter Signed by

Project Guide

Counter Coordinator

LIST OF CONTENTS
Sl.No. 1. 2. 3. 4. 5. 6. 7. 8. 9. Title Introduction to the study Aim, Objective of the Study Methodology Scope of the Study Limitations of the Study Industry Profile Certifications KMML Layout Company Profile Page No.

10. Product Profile 11. Vision, Mission, Objectives 12. Organization Structure 13. Functional Departments Personnel and Administration Department Marketing Department Finance Department Production Department Maintenance Department Materials Department Data Processing Department Fire and Safety Department Technical Department Research and Development Department Project 14. SWOT Analysis 15. Findings 16. Conclusion 17. Bibliography 18. Appendix

LIST OF CHARTS AND FIGURES

Sl.No.
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15.

Title
Organisation Structure of KMML Organization Chart of Personnel Department Organization Chart of Marketing Department Organization Chart of Finance Department Profit & Loss Account Balance Sheet Organization chart of production Department Basic Processing Steps Organization Chart of Maintenance Department Organization Chart of materials Department Organization Chart of data processing department Organization Chart of fire and safety Department Organization Chart of technical Department Organization Chart of Research & Development Organization Chart of project Department

Page No.

CHAPTER 1

INTRODUCTION

AN INTRODUCTION TO THE STUDY

Organizations play major role all over the world different organization meet people needs and provides them with product, service, or both. Due to globalization, the world has become a global village. This has very much helped people to get their needs. Different firm play different role and has its own importance. For my study, I have chosen Kerala Minerals And Metals Limited. It is a well-reputed company fully owned by the State Government of Kerala. The Company has indulged in the manufacturing of world class Titanium Dioxide. It has been ranked among the top ten competitions in the world producing its own product. In this study, I will be covering the organization as a whole briefly. Hope I succeed and fulfill the study that I began with. KMML is a world class producer of mineral sand based value added products. In India, KMML is the only producer and distributor of rutile grade Ti02. The company enjoys monopoly and faces no competition in India. But in foreign markets, the company faces competition from a number of companies.

AIM OF THE STUDY Our 30 days organization study is aimed to get an industrial exposure and to understand the functioning of the organization in real life. It is intended to help students to link the corporate management practices in an organization with the theory OBJECTIVES OF THE STUDY 1) 2) To acquire knowledge about the company has learnt. To get the knowledge about the functional and managerial aspects of KMML. 3) 4) 5) To brief study of KMML. To get the practical knowledge of KMML. To analyze the functional position of KMML.

METHODOLOGY There are 3 steps involved in an organization study. It can be described as follows 1) The first step is the collection of all available information from various primary and secondary data sources. Collecting information from manuals, reports, articles etc, which were provided by KMML regarding the origin, facilities available in the company and a brief on its activities and functions. 2) Interviewing departmental heads and other staff for understanding the activities of each department, structure and the roles played by each of them. 3) Visiting the operational sites of various departments. The main aim is to obtain a physical feel of the departments and observe the activities performed by it, and it's important to the whole organization.

That is the study has been conducted using primary and secondary data. The data were collected with the help of questionnaire; interview and observation. Two sources are used for collection of data. Two sources of data are 1) Primary sources of data collection 1) Secondary sources of data collection Primary data collections are Observation Personal interview Secondary data are collected from Company brochure Companys website

Business Magazines

SCOPE OF THE STUDY For the organizational study I have chosen Kerala Minerals and Metals Limited, It is a well-reputed public sector undertaking in Kerala State. In this study, I will be covering the organization as whole briefly. From the organizational study it has provided the first hand knowledge regarding the functioning of KMML and gets more knowledge about its Marketing, Financing and all over the functional areas of the organization. The organizational study program has been highly beneficial to me. Through this study
"

1) The student shall get familiarized with the structure, systems, procedure

and functioning of an organization.

2) The student shall encounter practical situations which require immediate

solutions by relating numerous theories and concepts into practice.

3) Students

can come with unbiased and impartial suggestions and

recommendations. LIMITATIONS OF THE STUDY 1) The study was conducted within a period of stipulated time. 2) The workers were busy with their work and had little time available for an interview or conversation. 3) The manager's time availability for discussion were limited and frequently interrupted due to official commitments.

CHAPTER - 2

INDUSTRY PROFILE

INDUSTRY PROFILE

The world is rapidly shrinking with the advent of communication, transportation and financial flows product development in one Industry are finding enthusiastic acceptance in other industry. As the Industry, which is manufacturing Industry, product definitely depends on the end user Industries. Industry plays a significant sole in every firm. Industrial development has been given on greater importance in Indian planning on account of Industrial development. Industry is necessary in productivity, employment, national Income and rate of capital formation in India witnessed large scale diversification India. Now India occupies tenth place among the industrially developed countries in the world. TITANIUM DIOXIDE INDUSTRY IN INDIA The Indian reserves of illmenite and rutile is expected to the around 60 million tones. The most important sources of illmenite in India are beach sands of south. Maharashtra, Orissa, Tamilnadu and in Kerala is around 45 million tones. There are about 20 million tones reserves in Orissa. This information threw light 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 inks etc. The arrival of new manufactures will be more in the near future. This will ultimately results in
tight competition.

CERTIFICATIONS OF KMML
1) ISO 9001:2000 Certificate from Bureau Veritas Quality International (BVQI) and holes certification of United Kingdom Accreditations Service (UKAS). The United Kingdom Accreditation Service is the sole national accreditation body recognized by government to assess, against internationally agreed standards of an organizations that provide certification for testing, inspection and calibration services. and accredits certification from ANSI-ASQ National Accreditation Board (ANAB) is the U.S. accreditation body for management systems, ANAB is a member of the International Accreditation Forum and a signatory of the IAF Multilateral Cooperative Arrangements (MCA) , ANAB ensuring accredited certificates which are recognized nationally and internationally for good quality management system. 2) ISO 14001:2004 Certificate from Bureau Veritas Quality International (BVQI) and accredits certification of National Accreditation Board for Certification Bodies (NABCB). NABCB is a member of International Accreditation Forum (IAF) having Multilateral Recognition Arrangement (MLA) to certify ISO 14001 - Environmental Management System. and holes certification of United Kingdom Accreditations Service (UKAS). The United Kingdom Accreditation Service is the sole national accreditation body recognized by government to assess, against internationally agreed standards of an organizations that provide certification for testing, inspection and calibration services.

3) OHSAS 18001:1999 Certificate from Bureau Veritas Quality International (BVQI) The Occupational Health and Safety Assessment Series (OHSAS) specification gives requirements for an occupational health and safety (OH&S) management system, to enable an organization to control its OH&S risks and improve its performance. National and International awards conferred on KMML National award for R & D efforts industry for the best research and development efforts by department of Science and Technology(1992)
FACT MKK NAIR Memorial productivity Award 1993-94,94-95 for the

best productivity performance by Kerala State Productivity Council Energy Conservation Award 1999in appreciation for outstanding achievements towards energy conservation and management in the category of large scale industries
FACT MKK NAIR Memorial productivity Award 2001-02 for second in

productivity performance by Kerala State Productivity Council 2001

FACT MKK NAIR memorial productivity Award 1999-2000,2000-01 for

first in productivity performance(Large Organization) by Productivity Council

Kerala State

Energy Conservation Award 2001 for conservation and management in the

category of large scale industries by Energy management centre Kerala 2001 Award for Revenue performance 2003 for the best performance by central excise, customs Kollam Division 2003 Marketing campaign Award 2003 for best marketing campaign by Asia pacific coating 2003

 International gold medal for the Quality of the product and efficiency of the company by Forum Kerala Lumpur Global Rating UK 2003
Special Export Award for export performance by chemicals and Allied

Export Promotion Council (CAPEXIL) sponsored by ministry of Commerce Government of India 2002-03

EMPLOYEE STRENGTH There are about 210 officers and 1122 workmen in KMML. The total
strength is 1332.

FUTURE PLAN The company is studying the possibility of the productivity of more economic titanium metal sheets. Recently, researchers established that the Aeronautic Industry could use Titanium metal instead of Aluminium alloy or Duraluminium coverings. The company is in the process of expansion and the target expected is approximately as shown be1ow: 1. A new Mineral Separation Plant of capacity 2 lakhs tones per year illmenite 2. 3. 4. A new Synthetic Rutile Plant of capacity 1.3 lakhs tones per year A new 100 tones per day Oxygen Plant Capacity enhancement of TiO2 pigment plant 1 lakh tones per year

POLLUTION CONTROL KMML has elaborate Pollution Control system with respect to both water and air pollution. The waste (acid) from illmenite Beneficiation Plant are sent to Effluent Neutralization Plant (ENP). ENP consist of a Primary Neutralization Tank (PNT) and Secondary Neutralization Tank (SNT) where it is treated with caustic soda solution. The totally neutralized slurry from the SNT is pumped to 50000m3 capacity setting pond provided with impervious clay, polythene lining at

bottom side where the solids are settled. The dye solution from setting pond of 25000m3 capacity where the balance solids are allowed to settle. Then clean water from the polishing pond meeting all specification stipulated by Pollution Control Board authorities is pumped in to the Arabian Sea. All gases from Chlorination, Oxidation, Illmenite Beneficiation Plant and Acid Regeneration Plant are passed through scrubbed water or caustic solution to absorb the toxic gases diluted with enough fresh air and only let out to the atmosphere through tall slacks.

KMML Plant Lay Out

NH. 47 Administrative Block

FINANCE DEPARTMENT

Plants
SUBSTATION CANTEEN

MARKETING DEPARTMENT

OXYGEN PLANT
PERSONAL DEPARTMENT

PPP UNIT
MATERIAL DEPARTMENT

PPP UNIT 400/500

100/200

PPP UNIT ARP IBP 300

PPP UNIT 400/500

MAINTENANCE SHOP

EMERGENCY BLOCK

ERS
RAW ILLMENITE GODOWN

IRS

STORE

CENTRAL MECHANICAL REPAIR BLOCK

LAB

AIR COMPRESSING BLOCK

COAL YARD

BOILER PLANT

CHAPTER 3

COMPANY PROFILE

COMPANY PROFILE

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. Eventhough the German laid foundation for a mineral separation plant at Chavara its activities were curtained by World War 2.

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 planed and implemented with the wholehearted support of the workforce during the period 1991-1993.1t started to yield results and the Company attained the break even level by 1993.From 1993-1994 onwards, the company started to make profits and wiped out the entire accumulated loss within a few years and repaid the long term loans. Thereafter, it is the story of success and growth.

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. Miss. F X Pereira & Sons (Travancore) Private Limited were the pioneers who established the first full fledged 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 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

FUNCTIONAL DEPARTMENTS

ORGANIZATION STRUCTURE

MANAGING DIRECTOR

GM PRODUCTION

DGM P&A

GM MARKETING

GM FINANCE

MAINTENANCE MANAGER

MANAGER
MANAGER WELFARE

AGM

AGM

MANAGER

ASST PERSONNEL OFFICER

DEPUTY MANAGER

DEPUTY MANAGER

PROCESS

EMPLOYEES

SENIOR ACCOUNTANT

EMPLOYEES

EMPLOYEES

ASST TO SENIOR ACCOUNTANT PURCHASIN G OF FIRM TYPIST PEON

EMPLOYEES

MARKETING OF FIRM (DOMESTIC)

ACCOUNTANT GRADE 1 ACCOUNTANT GRADE 2

ASST GRADE

EMPLOYEES

EMPLOYEES

DEPARTMENTAL STUDY Like any other public sector undertaking KMML has separate departments and separate executive heads for each department Departments are based on the functional basis. Each department specializes in its own area of operation. The various departments in the KMML are:1) Personnel & Administration 2) Marketing 3) Finance
4) Production 5) Maintenance

6) Materials 7) Data processing 8) Fire & Safety 9) Technical 10)Research and development Department 11)Project

1) PERSONAL AND ADMINISTRATIVE DEPARTMENT

Of all the factors of productions, man is by for the most important. It is a matter of common knowledge that every business organization depends for its effective functioning not so much on its material or financial Resources as on its pool of able and willing Human Resources. M J Jueius defines personnel management as the field of management which has to do with planning, organizing, controlling various operative activities of procuring, developing, maintaining and utilizing a labour force in order that the objectives and interest for which the company is established are attained as effectively and economically as possible and the objectives and interest of all levels of personnel and community are served to the highest degree.

Workman Classification Permanent employees There are about 215 officers and 960 non technical staffs in the TiO2 pigment plant as permanent employees. Employees engaged on contract basis The employees worked on contract for a limited period of time on terms and conditions fixed by the company. They are mainly engaged through employment exchange. Temporary or seasonal Worker These workers are employed when the workload is more and seasonal demand is high. They are dispersed when the work is over. Casual Labour They 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 employees when vacancy arises. Apprentice Apprentice work for a period of 1 year as a part of training program as per Apprentice Act.

Certain Recruitment Sources

o Internal Search o Advertisement o Employees Recommendations o Employment Agencies o Temporary Help Service o Schools, College and Universities o Professional Organizations o Casual or unsolicited Applicants o Other Sources

Recruitment procedure in KMML 1. The employment exchange compulsory notification of vacancies Act.1959 stipulates that every establishment in public sector shall before filling vacancy in any employment in the establishment in public sector should notify the vacancies to the concerned employment exchanges any failure to notify such vacancy is an offence punishable under that Act. Therefore the chief executive of public establishments shall notify vacancies to comply with the Act. 2. Recruitment to managerial and professional posts carrying a starting basic salary excluding DA and other allowances of Rs 15000 / per month and above shall be made by selection from the applications received through sufficient advertisement in newspapers. The candidate sponsored by the employment exchange shall be selected from the applications received through sufficient advertisement in newspapers. The candidate sponsored by the employment exchange shall also be considered for selection .If the details are furnished by the employment exchange, call letters are issued to the short listed candidates for the interview or test. 3. Selection to all other post outside the preview of public service commission shall be made from among the candidate sponsored by employment exchange. In this case filling up of vacancies by generating applications through advertisements in newspapers should be attempted only after obtaining non availability certificates from employment exchange.

4.

Recruitment to vacancies should be made by committees set up by board of directors with not less than 3 members and atleast 1 of them being government representative.

5.

In respect of direct recruitment the principles of reservations as applicable to government appointments should be adhered to the principles of communal rotations and laid down in Rule 15 to 17 of the Kerala subordinate service Rules part II shall be followed.

6.

No preferences shall be given to the apprentice of the undertaking while making recruitment against permanent vacancies.

7.

The practice of hiring persons on daily wages to man posts, which can be called through employment exchange, shall be discontinued. All existing vacancies should be anticipated and actions should be taken to fill them. All amounts spent on hiring daily wage employee shall be treated as irregular expenditure, which could be recovered from the appointing authorities.

8.

The instructions already issued by the government to these extend they are contrary to the foregoing procedure will be cancelled from the date of issue of the circulars.

Working Hours

The company works on shift bases. There are 3 shifts for plant and general shift for Administration. The timing is as follows:

A shift 6 am to 2 pm B shift 2pm to 10 pm C shift 10 pm to 6 am General 9 am to 5 pm

Stipulations An employee has to report for duty at 9 am except the employee worked in shifting times. He may enter the company after one hour and will not be allowed to enter after his grace time. An employee entering after the grace time may losses 15 minutes salary / wage for the first 15 minutes and between 16 to 30 minutes late he losses 30 minutes salary and between 31 min to 60 min late he losses one hour salary or wage. This is closely watched by the time officer.

Welfare Activities The provision regarding the Factories Act 1948 require the appointment of a Fulltime Labour Welfare officer in every concern which employs 500 or more employees. In KMML personnel and Administration department is entrusted which covers the intellectual, physical, more and economic betterment of workers.

Aims of Labour Welfare Functions in KMML

Labour welfare facilities have the following aims: To overcome the monetary frustrations of the employees To provide opportunities for development of individual talents To provide assistance in solving personal and family problems of employees To offer facilities for the improvement of health of employees Create conditions where employees are able to develop a broader vision of life matters.

Bonus Employees who get more than Rs.4500 per month are eligible for bonus.

Almost all employees of KMML get it.

Provident Fund PF was first introduced 1956 and administered by the trust. Here both the

employer and employee have to contribute 12 percent each of the basic pay, where 8.1 / 3% is transferred to pension fund.

Gratuity Minimum amount payable as gratuity is Rs. 4500. Employees having

continuous service of 5 years are eligible for gratuity calculated as follows Gratuity = Basic Pay + Dearness Allowance * 15 * Number of years / 26

ESI All the employees working here including casual and contract whose salary

does not exceed Rs 4500 per month are covered under this Act. As and when employees are registered with ESI, they are entitled to get following benefits from ESI Sickness benefit Disable benefit Dependent benefit Maternity Funeral benefit

Rehabilitation

ALLOWANCES The allowances provided by me company for its employees as followers House rent allowance (HRA) Workmen of me company shall be titled to HRA a 10 of me the basic pay effective from 11-1-1997. Conveyance Allowance (CA) Upto Rs 100 given as Conveyance Allowance as per the memorandum of agreement. Shift allowance Employers wording in A, B, C shift are paid Rs 300 pm as shift allowance Washing allowance Washing allowance is Rs 60 pm. A least 5 days attendance is necessary for this. Cash tending allowance Rs 150- 180 pm is paid as cash handling allowance to employees who look after the duties of the cashier Milk allowance Workers haling 15 days of attendance are eligible for milk allowance amounting up to Rs 90 pm Stitching allowance

Employees are given stitching allowance as follows uniform for gents Rs 180. Over coast Rs 85 For bounce of upon Rs 40

Chlorine tanker duty allowance Rs 120-160 Rs paid as his allowance as this allowance

Acting allowance All workmen in titanium dioxide pigment ..of the company work in the c shift will get night shift allowance of Rs 20/-.

- Education Allowances Education allowance are granted to 2 children Up to S.S.L.C S.S.L.C Plus two Degree Professional course - Attendance Allowance Employees for offering in attendance of 80-90% are given a bounce of Rs 100 greater than 90 are given a bounce of Rs 110 .100 % attendance are given 1 day wage and DA (Rs 200) Employee PF and pension scheme In KMML the employee in T 102 pigment unit are covered by the employee pf miscellaneous provision act 1992. But the employees in the MSU are not covered by this Act.12% of basic part and DA will be recovered from the salary an equal amount is contributed by the company in their account 8.33 % of = = = = = Rs 80pm Rs 90 pm Rs 100 pm Rs 120 pm Rs 140 pm

the scheme is permitted to pension scheme and remaining 3.6% is permitted to employees provident fund.

Housing loans In KMML employees will get housing loan up to an amount of Rs 4,00,000 for construction of a new house and for extension of existion of existing house Rs 2,00,000 Vehicle loan The maximum amount by loan admissible for purchase of scooter motor cycle to workmen in KMML will be Rs 50000.intrest will be changed of the existing rate. Non-financial incentives in KMML Financial incentives are used to motivate employee for higher works .however individuals have various needs, which they want to satisfy while working in the organization .people at comparatively higher level of managerial hierarchy attach more important to socio-psychological needs, which cannot be satisfied by money alone. The following are me important non-financial infective in KMML

LEAVE Annual leave: In KMML employers are allowed 26 days by annual leave for every completed calendar year by service, Sick leave Employers of KMML are eligible for 14 days sick leave every year and half pay sick leave.

Casual leave Casual leave of 14days for a calendar year will be allowed to all employers, speed leave with wages, as presently given to heart patients are extent ended to these workers shuffling from cancer, those undergoing kidney transplantation and brain disease .those workers who undergoes sterilization operation will eligible for all benefits available to the safe government employers doing sterilization operation. TRADE UNION There are 4 trade union in KMML
1. Titanium complex employee unions (UTUC RSP CB) 2. Titanium complex employee congress (INTUC)

3. KMM titanium complex employee union (CITU) 4. KMM titanium complex employee union (STU (MUSLIUM LEAUGE)

WAGE STRUCTURE

Sl no 1

Category of employee Workers grade employees, sweeper, scavengers Security guards and peons Bluer pink operator record keeper and store attitude Fireman drivers

Existing scale of pay 3800-80-4040-854465-110-5015135-5825 4380-85-465-1105015-135-5825150-6725 4795-110-5015135-5825-1507325-170-9025 5150-135-5825150-7325-1709025-200-9223 5420-135-5825150-7325-1709025-200-9625 5690-135-5825150-7325-1709025-200-10025 6275-150-7325170-9025-20010825-215-11470

Revised scale (Rs) 4380-85-465-1105015-135-5825150-6725 4795-110-5015135-5825-1507325-170-9025 5150-135-5825150-7325-1709025-200-9223 5420-135-5825150-7325-1709025-200-9625 5690-135-5825150-7325-1709025-200-10025 6275-150-7325170-9025-20010825-215-11470 7375-200-9025200-10350-25011135-250-11995

Operation grade C with typist, steno, accountant, assistant canteen super wiser Operators grade B receptionist, male, nurse, etc Senior grade assistant operation grade A canteen supervisors, operational technical

2) MARKETING DEPARTMENT

"Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others"---------Philip Kotler.

ABOUT KMML MARKETING KMML have monopolistic in Titanium Dioxide (TiO2) pigment industry. KMML is a public limited company that stands as a leader in production of TiO2. The company has a large number of customers from all over the world and out side. The marketing department is engaged in selling of the company's product. There is no separate department for sales and marketing management also perform these functions. The marketing section keeps detailed report about customers' product, product group control, dispatch and payment. Products of KMML always maintain very high standard perfection, achieving technical excellence in every phase of production to offer a wide range of products for quality conscious customers. At KMML, one factor comes before everything else is customers and KMML go out of their way to ensure customers satisfaction. A team of motivated marketing experts, who make it their business to find out the firm's views, highlights customer's consciousness. Maintaining close contacts, they are perfectly aware of customer's needs and are instrumental in development of new products at price and offering.

MARKETING MIX PRODUCT The major products of KMML is Titanium Dioxide Ti02 (Rutile) pigment, which is extensively, used as the main raw material by several industries such as paint, plastic, rubber, printing, inks etc. PRODUCT PROFILE Titanium Tetra Chloride (synonym-Tickle) is produced as an intermediary product in the production of rutile grade titanium dioxide pigment. Titanium Tetra Chloride is extensively -used in the manufacture of Titanium dioxide pigment, Titanium sponge or metal. At present KMML produce six grades of Titanium Dioxide and they are: I) Kemox RC 800:- It is recommended for printing inks, high gloss coating, industrial coating, low abrasivity pigment for letterpress gravure polyamides and exterior application where maximum chalk resistance is not required. 2) Kemox RC-800 PG:- It finds application in plastic requiring a blue white high dispersion Ti02. Other areas of application are powder coating, polyethylene films and vinyl sheet goods. It is used in most other common plastic or rubber floor like applications. 3) Kemox Rc-822:- It is recommended for interior and exterior enamels and lacquers for industrial and architectural purpose. 4) Kemox RC - 813:- It can be used in both interior and exterior low gloss and flat paints and coating- both solvent and water based. It finds application in interior flat wall paints, exterior low gloss or flat house paints, low gloss maintenance pints, low gloss or flat chemical coating etc. Kemox RC-813 can be described as a universal pigment for all coatings formulated at higher percentage pigment volume concentrations.

5) Kemox RC-802: It is recommended for both interior and exterior applications. This is also recommended for architectural and industrial paints-both solvent and water based. 6) Kemox RC-808: It is recommended for automotive, industrial and architectural finishes. It is also recommended for coil coating, radiation cured finishes; emulsion paint systems powder coating, water borne coating and printing inks. It can also be used for letterpress gravure, polyamides and other inks where low abrasive pigments are required. PRICE Based on the variation in the market, the price of Ti02 is fixed by KMML. The price is fixed by Chairman and Finance Secretary of the Government of Kerala. The price is periodically revised due to market fluctuation. Selling price of all grades ofTiO2 (Rutile Grade Pigment) = Rs. 194000 + 16% Excise duty + 4 % CST PROMOTION KMML is a sole manufacture of rutile grade titanium in India. Hence there is no much competition in the world market. Advertisement promotes the company product. ADVERTISEMENT Advertisement are given in trade journals, industrial news, magazine used by paying manufactures association, ink producer association etc. Advertisements are also given in newspapers while appointing stockiest. KMML subscribes "Paint India" the leading publication of the paint industry and also "Mineral Market Reporter" which provides valuable information about Ti02 at national and international level. The company also provides discount scheme for its customers.

PLACE OF DISTRIBUTION Marketing channel decisions are among the most important decision that management faces. A company's channel decision directly effects every other marketing decision. The firm's sales force and advertising decision depends on how much persuasion, training and motivation the dealer need. DISTRIBUTION SYSTEM In KMML distribution is divided into two major categories: I) Direct Supply:- Direct Supply to the actual customers who require seven metric tones or more at a time. By this policy KMML, have estimated the middlemen and it is easily adapted to any circumstances. 2) Supply through Stockiest:- Supplies to small sectors are done through stockiest appointed by the company in all major cities. Company fixes prices for its products and the stockiest are responsible to see the pelts at fixed once. All the grades of Ti02 pigment produced in KMML come under the category of industrial goods; Ti02 is mainly used in paint industry, textile industry, printing ink industry etc. The total customers can be divided in to three types: Major Customers Stockiest Other Customers CUSTOMERS Paint industry contribute large customers of Ti02-, other largest customers include such industrial as paper, plastic, polyester. The bulk of the products in KMML are consumed by industrial namely: Asian Paints

Hindustan Latex and Revin

 Shalimar Paint

Corlass Nerolac Jenson and Nicholson Sanderson Chemicals Mega Meditex Camlin Plastic Chemix Industries Berger Paints Rajdoot Paints

SALES PROCEDURE The sales section obtains the order from the customer; receives the pigment in the form of cheque or DD, dispatches the quantity and send invoice to Financial Department. MAJOR COMPETITORS The company has a monopolistic nature in TiO2 pigment industry in India. The company has some competitors in the world market. The main competitors in the world market are: Dupont (USA) Ishihara (Japan) Hoitex (USA) Millennium (Germany) Henduk (Seoul, Korea)

 Flectha Titanium Products (New Zealand)

Tofins (Netherlands)

EXPORT MARKET IN KMML Even through KMML faces stiff competitors from multinational giants, KMML receives a number of export orders through e-mail, fax and through correspondence from customers abroad. KMML enjoys good reputation for quality pigment in the international market. The company is exporting its products in Korea, South Africa, Sri Lanka, Turkey, Dubai, China, Mauritius, UK and Philippine. The company is now exporting 30% of their production. It has plans to raise this to 50% by 2013. MARKETING INFORMATION SYSTEM KMML is a member of chemical and allied products export council. Bulletins of chemical are regularly received by KMML and used to obtain the latest trend of Titanium Dioxide demand for various customers both indigenous foreign. KMML subscribes "Paint India" the leading publication of paint industry and also "Mineral Marketing Reporter" which provides valuable information about Ti02 at national and international level. KMML uses the services rendered by "India Marketing Bureau" which is a marketing research as advised by KMML. For this KMML has to pay fees annually for their research studies. HANDLING CUSTOMER COMPLAINTS The complaints received from the customers are registered by KMML, and acknowledgment sent to customers. The details of the complaints are entered in the customer complaints register. The particular about the progress of

investigation and nature of disposition are updated in the customer care register.

MARKETING FUNCTIONS OF KMML FUNCTIONS OF EXCHANGE I) Buying and Assembling:- The extraction of raw materials of producing finished titanium dioxide is done at Chavara where the factory is situated. Only certain quantities of chemical and other raw materials is purchased from other units for the production of titanium dioxide. Assembling of titanium dioxide is done at the factory godown. 2) Packing:- Titanium dioxide is packed in 25Kg net weight in laminated multi wall paper bags. After the chemical process is over, the materials is micronized, the pigment is collected in bagging. The material is taken to a conveyor, here two peoples are engaged in bagging and four are in stocking. It is then taken and stored in pigment godown. 50 bags are packed in one pallet weighting 1.25mt. 3) Selling:- KMML sells titanium dioxide directly to its consumers and its stockiest in bulk. The stockiest are appointed by fulfilling certain rules and regulation of the company. Functions of physical supply
Despatching: - After the order from stockiest and consumers, have been

received, the marketing department arranges the execution of orders by way of dispatch. The mode of payment must be in the form of Demand Draft payable at any scheduled bank at Kollam.

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

1) Financing:- For carrying out marketing functions, KMML does not require financial assistance in form at loans. The customers will have to make payment in advance.

2) Risk Bearing:- Marketing of titanium dioxide pigment involves a number of risks. Returning the goods by customer or damages at the time at storing in the factory go down covers the risk factor. All the above risks are reduced to a great extend with the help of insurance. PRODUCTION AND SALES The commercial production started in 1985. Following chart will show the production and sales of titanium dioxide in past years. Year 2004-05 2005-06 2006-07
2007-08

Production in m/ton 18042.000 15377.775 10115.650 14486.550 19317.000 21816.000 23521.01 24251.610

Sales in m/ton 16150.475 18011.500 6050.450 14707.550 21526.850 23501.000 25230.000 25851.000

2008-09 2009-10 2010-11 2011-12

MARKET RESEARCH ACTIVITIES OF KMML MAIN OBJECTIVES 1) To find out the general impression of KMML products in the tit dioxide marketing of India. 2) To ascertain whether demand exists in the Indian market. If we under the

proposed expansion of 6000 million tonnes. 3) Equivalent grade needed in market.

New product development A new hydrophobic plastic grade pigment RC804 was developed by the effort of inhouse R and D of our company. The trial production of the same, approximately 100 times was taken successfully. The sample has been tested at CIPET Hyderabad and found to be comparable to competitive international grade pigment. Free samples were given to customers for their evaluation after which bulk orders were received and the entire material could be sold out.

ORGANIZATION CHART OF FINANCE DEPARTMENT

GENERAL MANAGER (FINANCE)

MANAGER (FINANCE)

MANAGER (INTERNAL AUDIT) INTERNAL AUDIT ASSISTANT

DEPUTY MANAGER (FINANCE)

A/C OFFICE R CASH

A/C OFFICE R SALARY ASST A/C OFFICE R

ACCOUNTA NT

A/C OFFICE R TAX

A/C OFFICE R BUDGET ASST A/C OFFICE R

ACCOUNTA NT

A/C OFFICER BILLS

A/C OFFICER SALES TAX

ASST A/C OFFICE R

ACCOUNTA NT

ASST A/C OFFICE R

ACCOUNTA NT

ASST A/C OFFICE R

ACCOUNTA NT

ASST A/C OFFICE R

ACCOUNTA NTNT

3) FINANCE DEPARTMENT Finance is the lifeblood of every business. This is one of the most important departments. In KMML a well organized finance department is functioning. The finance position of the company can be understood by Balance Sheet and Profit and Loss Account, prepared budget report according to the company's goal is also an important function of the finance department. Accounting Policy of KMML 1) Convention The final statements are prepared under the historical cost convention in accordance with applicable accounting standard that was relevant to presentational requirement of the Companies Act 1956. 2) Fixed Assets Fixed assets are stated at cost of acquisition and additional if any, less accumulated depreciation, is provided at rates and methods prescribed in the schedule XIV of the Companies Act on straight line method in respect of plant and machinery and railway sliding belonging to TiO2 pigment unit. And written down value method in respect of all the asset of the company. The depreciation is calculated on the basis of Companies Act and for income tax audit it is added to the profit and recalculated as per the audit rules. 3) Excise duty Excise duty on manufactured is accounted for as and when goods. Are dispatched is accordingly no provisions is made in respect of duty due on goods manufactured, but not dispatched nor included in valuation of stock.

4) Gratuity Gratuity liability and leave is accounted on the basis of actuarial valuation.

5) Inventory System Work-in-progress is valued at the cost and stock of raw materials, chemicals, fuel and stores are valued at weighted average cost on monthly basis. ADJUSTMENT PER TRAINING TO EARLY YEARS Adjustment arising out of errors or omission in the financial statement of earlier years are prior period item, if the amount involves is Rs. 1,00,000/- or more in each case. FUNCTIONS OF ACCOUNTING SECTION OR FINANCE DEPARTMENT The company maintains a clear and perfect accounting system. The main activity of the Finance Department is Working Capital Management. Preparation of Fund statement, cash Flow Statement, Balance Sheet. Profit and Loss Account etc are also 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. The Functions are: 1) Purchase are Recorded and Analyzed The Finance Department of the company keeps the accounts of purchase of spare parts, chemicals etc and accounting entries are made in the books of accounts of the company on day to day basis, on the basis of bills and supporting vouchers of each item. Each voucher is essentially numbered to avoid discrepancy.

The company makes only miscellaneous purchase, as the main raw material is mineral sand. The department analyses the details of purchases afterwards.

2) Salary Section and Pay Division The main function of the department is preparation and disbursement of salary of officers, members of office staff and workers. The department keeps salary register pertaining to each of the above sections, which facilitates charges in salary due to granting of annual increments and deduction due from the salary. The disbursing of salary is crediting the amount to the respective bank account of the employee. The department is sending a detailed list of salaries; they have arranged an A TM counter of ICICI Bank in the company compound. Certain employees are paid by cheque. The department is maintaining sub ledgers for deductions made in the salary such as PF, Insurance Premium Advance, Income Tax etc. Another important function is computation of income Tax. Its deductions and prompt remittance to IT Department. 3) Sales and Revenue Accountine: The department is calculating and paying sales tax and central excise duty to the concerned Government every year. The Government is earning a total income of Rs.44 crores and Rs.14 crores by way of excise duty and sales tax duty from the company. 4) Cash and Bank Transactions The department does all the matters relating to the day-to-day cash transactions. They receive and make payment for purchase and sales. The company is allowed to collect cash up to the limit of Rs.20000/- is carried out by cheque or DD as per direction of the Tax Authority. 5) Major Banks of the Company ICICI, SBI, SBT, Standard Chartered Bank, Canara Bank, Central Bank of India.

6) Costing Annual budget and cost sheet is prepared at the outset of every year and on the basis of the department fixes the floor price of each product of the company. 7) Calculation of Depreciation The department calculates the depreciation. Depreciation is provided on straight-line method in the case of plant and machinery of Titanium Pigment Unit and written down value method in case of other assets of the company. AUDITING Auditors are appointed by the Government for a period of one Year. There exist an external audit and internal audit. Internal Audit:- These are part of the organization. There is an internal auditing sector. They are in the charge of periodical audit. External Audit: They are as follows: Statutory Audit Account General's Audit Inspection Audit Sales Tax Audit Income Tax Audit Cost Audit The company has registered yet another excellent result during the year ending 31 March 2003. Production of the company for the year 2000-2005 is given below. Production Year 2007-08 2008-09 2009-10 2010-11 Ti02 Pigment 22815 25426 25612 25921 Minerals (Ilmenite) 10823 11647 17945 19138

2011-12

26859

21555

During the year 2011-2012 Company has achieved a record production of 25612 MT as against 25426 achieved during the previous year. Similarly, the production in the MS unit has also increased from 10823 MT to 17945 MT. This is mainly because of adding two more magnetic separators in the old plant. Modernization of MS plant o\is nearing completion and when the same is completed anticipated production would be 45000 to 50000 MT per annum. FINANCIAL RESULTS Financial results of your company for the year under review and previous year are given below.
Particulars Total grossturn over Gross profit before interest and depreciation Profit before tax Profit after tax and prior period adjustment Transfer to general reserve Capital employed Internal generation 2011-12 (Rs. In lakhs) 32854.54 3079.60 2243.24 1121.07 92.79 43851.73 1885.43 2010-11 (Rs. In lakhs) 32304.14 2594.06 1782.05 1115.27 0.00 43075.03 1601.24

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31sT MARCH 2012 Particular Income Gross sales Less:Excise Duty Net Sales Other Income Stock Differential Total EXPENDITURE Manufacturing Expenses Payments and Benefits of Employees Administrative selling and Other Expenses Interest and Finance Charges Depreciation Profit Before Tax Less: Prior Period items Doubtful advances Profit after Prior Period Adjustment Less: Provision for Current Taxation Less: Provision for Deferred Tax Less: Provision for FBT Less: Prior year adjustments relating to Income tax Profit for the year Profit & Loss account Balance Brought Forward Amount available for appropriations Proposed Dividend Tax on Dividend Transfer to Reserves Surplus Transferred to Balance Sheet As per Schedule 2011-2012 (Rs. In lakhs) 32854.54 3280.05 0 P 29574.49 1776.80 2959.55 34311.02 23859.88 6783.54 583.00 72.00 764.36 2243.24 7.67 158.50 2077.07 900.00 116.08 56.00 S 0.00 1237.15 23662.66 24899.81 309.33 52.57 92.79 24445.12 39.99 625.00
0.18

2010-011 (Rs in Lakh) 32304.14 3337.07 28967.07 1483.14 1008.46 31458.67 22085.60 6165.78 613.23 73.38 738.63 1782.05 8.78 0.00 1773.27

K L M N R Q

33.00 25.48 862.61 22800.05 23662.66 0.00 0.00 0.00 23662.66 27.89

Earnings Per Share (Basic and Diluted) Refer Note 27 Of Schedule T Significant Accounting Policy Notes forming Part of Accounts U T

BALANCE SHEET AS AT 31ST MARCH 2012 Particulars As per 2006-2007 (Rs. In lakhs) Schedule 2005-2006 (Rs. In lakhs)

SOURCES OF FUNDS Share holders funds Share Capital Reserves & Surplus Deferred Tax Liability A B C 3093.27 40575.71 182.75 39700.46 298.83 Total Application of Funds Fixed assets Capital work in progress Investments Current assets Loans and Advances R F G H I 22531.31 18968.74 41500.05 Less: Current Liabilities Less: Provisions Net Current Assets Miscellaneous expenditure (To the extent not written off or adjusted) D E 5895.47 12554.58 18450.05 23050 11746.84 9037.29 17.60 27130.94 18975.96 46106.90 6577 .63 11775.42 18353.05 27753.85 0.10 5163.18 10157.90 43851.73 43092.56 3093.27

0.00

Significant Accounting Policy Notes forming Part of Accounts TOTAL

U T 17.53 43851.73 43092.56

WORKING CAPITAL Working capital refers to that part of the firm's capital which is required for financing short teem or current asset such as cash, marketable securities, debtors and inventories. It is a measure of both a company's efficiency and its short term financial health. If the working capital is positive it means the company is able to payoff its short term liabilities. If it is negative company is unable to meet its short term liabilities with its current assets. If a company's current assets do not exceed its liabilities then it may run into trouble paying back creditors in the short term. So if a company working in the most efficient manner (slow collection) it will show up as an increase in the working capital.

Year 200910 201011 201112

Current Year 29187.84

Loans and advance 23718.91

Current liability 4183.87

Provision

Working capital 32201.19

16521.69

127130.94

118975.96

16577.63.

111775.42

27753.85

122531.31

12004-05

129187.84

112554.58 123050.00

ORGANIZATION CHART OF PRODUCTION DEPARTMENT

DGM PRODUCTION

AGM

PLANT MANAGER

DEPUTY PLANT MANAGER

PROCESS ENGINEERS

ASST PROCESS ENGINEERS

ASST PROCESS ENGINEERS

OPERATORS

OPERATORS

WORKERS

WORKERS

4) PRODUCTION DEPARTMENT KMML always maintain high standard of perfection by achieving technical excellence in every phase of production. Catering to strict guideline, KMML offers a wide range of products for quality conscious customers. Their products go in to the manufacture of variety of products used in every day life. Paint material, facial creams, tablets, newsprint, rubber products, cosmetics and printing inks all contain TiO2. This department undertakes activities and decision regarding the production work. Deputy General Manager (production and maintenance) controls the activities of the department. Production of TiO2 is carried out in lot wise with specific lot number. Each lot contain 15 MT of TiO2 samples are collected from production at specific intervals and examined thoroughly in the laboratory or the company. If any defect is identified, then the lot is considered as inferior quality. . Mineral separation plant (MS unit) and TiO2 pigment plant (TP unit) is two independent production units in KMML. The TP unit is divided in to three plants. Illmenite Beneficiation Plant Acid Regeneration Plant Pigment MINERAL SEPERATION PLANT The MS plant was originally established in 1932 in the private sector.

Several machineries were added in the course of time. This plant situated by the side of the open mines, does the separation of the minerals from the beach sand. The raw sand is first concentrated in spiral separation to enrich the heavy mineral content. The wet concentrate is then dried in fluidized bed drier and then fed to the dry separation plant. Magnetic separation and HT separation separate different minerals. The plant also separates Rutile and Zircon from the sand.

TITANIUM DIOXIDE PIGMENT PLANT TiO2 Pigment manufacturing process of KMML based on chloride route, the process consist of following steps.

Reduction and leaching of raw illmenite of 90-92% TiO2 (illmenite Beneficiation)

Regeneration of spent Hydrochloride acid for minimum pollution. Conversion of beneficiated illmenite to TiO2 pigment

ILLMENITE BENEFICIATION PLANT Here the raw illmenite containing 58-60% TiO2 is beneficiated to 90% TiO2 content. The beneficiated illmenite is the raw material for the pigment production plant. The ferric oxide in the raw illmenite is subjected to high temperate of 8500c. The reduced illmenite then cooked and sent to digesters where it is leached with 1820% HydrocWoric acid. The spent leach liquor is sent to storage tanks. The leached illmenite after washing and filtering is calcined to get beneficiated illmenite.

ACID REGENERATION PLANT The spend leach liquor from the pre concentrator is processed in to the spray roaster in which the liquid spray entering the furnace is heated by the

burning oil. The spend liquor then decomposes to metallic oxides and hydrochloric acid. The hydrochloric acid vapour is first cooled in pre concentrator and then absorbed in the wash liquor generated in the IBP to get 18% HCI which is recycled back to IBP. The unobservable gases are scribbled with water before venting to the atmosphere. The metal oxide consisting of mainly iron oxide are slurred with water and routed to the slurry panel.

PIGMENT PRODUCTION PLANT The pigment production plant has three units: 1. Chlorination plant 2. Oxidation plant 3. Surface Treatment and Pigment Finishing Plant CHLORINATION PLANT This unit beneficiated illmenite from chlorinated as reducing atmosphere to produce Titanium Tetra Chloride (TiCI4). Chloride reacts with Titanium Chloride and other metallic oxides. Beneficiated in the illmenite in the pressure petroleum coke at a temperature of 800-900c in fluidized bed chlorination to produce chlorides are condensed and purified to obtain pure TiCl4liquid, which 4s stored in the storage vessel. OXIDATION UNIT In this unit raw pigment grade TiO2 is produced by reacting pure TiCl4 and oxygen with at a temperature of about 1000c in a reactor after preheating the TiCl4 in a pure heater having suspended in code tubes to carry the Titanium Chloride vapour. TiO2 raw pigment obtained for this unit is scurried with water pumped storage tanks for further processing in the pigment-finishing unit, the chlorine is liberated back to the chlorination unit. Oxygen and chlorine are required for oxidation and chlorination.

PIGMENT FINISHING UNIT

The unit-dispersed slurry from oxidation unit is passed through the different subsections of the unit via, sound milling and classification treatment filtration, drying, micronisation, scrubbing, cooling and bagging. In the treatment section chemicals are added. Give a coating to the pigment is reduced to two microns to be micronisation treatment. The hot micronised pigment is cooled and pneumatically conveyed to the final storage bin, this product is then bagged in paper bags of 25 kg each stacked on woolen pallets (40 bags/pallets) and dispatched. AIR SEPERATION PLANT This unit has been designated by Mis Lair Linde, France and supplied through M/s BHPV Ltd Visakapattanam. The Oxygen and Nitrogen are required for the process in the Oxidation and chlorination unit. This plant has a capacity to produce the following. 1 Gaseous N2 -1500 Nm/hr (50 MTD) 99.8% purity 2 Gaseous N2 -1800 Nm/hr (50 MTD) 99.5% purity 3 Liquid O2 - 37.5Nm/hr (2.5 MTD) 99.5% purity

4 Liquid N2 - 45Nm/hr (2.5 MTD) 99.5% purity

IRON OXIDE BRICKS PLANT An iron oxide brick is a building material produced KMML. The materials used for the production of iron oxide bricks are: 1. Iron oxide 2. Lime 3. Cement 4. Riversand 5. Sodium silicate The company has been facing a problem in the waste disposal areas. This

problem is mainly connected with the disposal of iron oxide slurry, which has been coming outside from acid regeneration unit as a waste. In order to dispose the iron oxide powder the company started to produce the iron oxide bricks in the plant. At present the company is using this product for its domestic purpose such as constructing compound wall, floor etc.

5) MAINTENANCE DEPARTMENT
The maintenance department of KMML can be grouped in to Electrical, Mechanical and Instrumentation section. The Joint General Manager (maintenance) is the top authority. 1. Electrical section: This department is under the control of assistant general manager (Electrical). It is the function of the department to ensure the flow of electricity through out the company. 2. Mechanical section: This department is under the control of assistant general manager (Mechanical). Function of the department is to ensure the easy working of machines. The company is doing periodical shutdown. to carryout necessary maintenance and servicing of the plant. 3. Instrumentation: Assistant General Manager (Instrumentation) is the apex authority of this section. The section inspects safety ness of valves, mechanics etc. and working of instruments. A statutory body occasionally visits the company to check the safety of the plant. 4. Civil: Manager (civil) controls the activities of this section. They undertake the functions relating to implanting new machinery etc.

ORGANIZATION CHART OF MATERIAL DEPARTMENT

DEPUTY GENERAL MANAGER MATERIAL

MANAGER MATERIAL

PURCHASE

STORE

PURCHASE OFFICER (IMPORT)

PURCHASE OFFICER (INDIGENO US)) ASST PURCHASE OFFICER

STORE OFFICER

STORE OFFICER
(INVENTORY CONTROL)

ASST PURCHASE OFFICER

ASST STORE OFFICER

ASST STORE OFFICER

(INVENTORY CONTROL)

STAFF

STAFF

CHARGE STAFF MAN STAFF

STAFF

6) MATERIALS DEPARTMENT All functions relating to purchase and storage of materials for the company is carried out by this department. This department is headed by the Deputy General Manager (materials). There is around 27000 items of raw materials in KMML. The functions of material department can be grouped in to three: Purchase Storage
Inventory control

PURCHASE SECTION Purchase can be broadly classified as Purchase made in India, i.e., indigenous purchase Purchase made from foreign countries Cash purchase i.e., up to Rs2000/-with the permission of unit head
Local purchase. i.e., up to Rs25000/-this arises in the case of emergencies

and purchase can be made from approved. TERMS OF PAYMENT 1. Direct payment 2. Through bank 3. Advanced payment

4. Letter of credit PURCHASE FUNCTIONS Purchase of materials is an important function of an industry. The procedure of purchase is as follows:

1. Purchase request: - The department or officer in need of material has to place his request in a purchase requisition form. In case of raw materials, it is done by the inventory control section. The purchase requisition is prepared in triplicate. The original copy of it is kept by storekeeper and the other is send to the authorized executive. The purchase request must be approved by the concerned department head. 2. Stock verification: -On received the purchase request the storekeeper checks whether the materials required is available through the store. If the materials are out of stock, the storekeepers inform the purchase section through and indent form. 3. Selection of suppliers: - The next function is to select the supplier to whom the order is to be sent. The company places a public tender notice for the procurement of raw materials. On the basis of the notice the vendor submit the tenders. Tenders have two parts: Technical bid and commercial bid: The tender committee opens the tender and verifies the technical bid and if they are satisfied with the technical bid i.e., with the quality of materials, they opens the commercial bid, the tender committee then prepares a comparative statement and accept the lowest price quoted Quotation. Usually, a contract for one year is made for the supply of raw materials. To avoid risk of the irregularities of the supply, the company appoints more than one vendor. In case .of spare parts

the enquiry is send to the vendor for, the vendors list of company and the apt vendor is selected on the basis of tenders. The vendor list contains the name .and address of vendors and with specific items. 4.Purchase order: - after deciding the supplier, the purchase officer of KMML has to place a purchase order. The purchase order is written authorization to the supplier to supply the particular materials. The materials are to be supplied according to the terms and conditions of the purchase order. In KMML five copies of purchase order is prepared. The original is send to the supplier. Second copy is send to the material receiving section The third copy is send to the person who has placed the purchase requisition The fourth copy is send to the Finance department for future reference for payment. The last copy is kept in the department itself. 5. Inspection of 200ds and quotation reception: - On receiving the materials from the vendor, a visual inspection is conducted. If there is any discrepancy between the party advice copy and received copy, a discrepancy is prepared and if there is any damage, a damage report is prepared. Items below Rs 500/- call for single quotation. Items above Rs 500/- and below Rs 50000/- are call for minimum three quotations from important manufactures, dealers and stockiest. Items above Rs50000/- call open tenders. STORE SECTION Store section deals with: Receiving the materials Inspection of materials

 Storage and presentation Proper classification and codification of materials ~ Materials handling Issue and dispatch Stock records Store accounting Stock taking

STORAGE FUNCTIONS Various documents are prepared by the store section for the proper functioning of the department. The documents maintained are as follows: 1. Stores inwards book: - On receiving any materials to the store, it is entered in a document called stores inward book (SIB) 2. Inspection of 2oods: - On receiving any materials and preparation of SIB inspection request is send to the concerned technical office for technical evaluation and reports are prepared on this basis. 3 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, materials received is accepted and payment can be made for it. The SRN is sent to the Finance -department for payment. Four copies of SRN are maintained in KMML. Usually the company gets a credit facility for 45 days. 4. Materials issue note: - Any material is issued from the store only after receiving a material requisition or Material Issue Note (MIN). MIN contains all the details regarding the material as well as the indenter. 5. Stock transfer note: - For transfer of materials between store or section or contractors, for transfer of materials between store and section prepared, it

contains details such as material code, cost center, material description, unit and quality. It should be mentioned that from which section and to which section is the transfer taking place. 6. Material return note: - Some times materials issued from the stores may be returned. In that case Material Return Nate (MRN) is prepared. It contains details such as the name of department from which the material is returned, value, quality, code, unit, present balance and reason for return.

BIN CARD BINCARD is a document attached to bin and it contains the quantities details of the materials received, issued and closing balance. In addition to this, it indicates information regarding different stock levels like minimum level, maximum level, recorder level etc coded number and name of materials. INVENTORY CONTROL SECTION Proper inventory management is necessary to provide and maintain good customer service. It enables smooth flow of goods through the production process. It is important as it provides protection against the Uncertainties of demand and supply and also performing the various production operations economically and independently. Materials purchased for month is analyzed and an issue price is fixed for the month. The company follows weighted average method.

ORGANIZATION CHART OF DATA PROCESSING DEPARTMENT

DGM (DATA PROCESSING)

AGM (DATA PROCESSING)

MANAGER (DATA PROCESSING)

SOFTWARE ENGINEERS

ASSISTANTS

7) MANAGEMENT INFORMATION SYSTEM Management Information System (MIS) is under the supervision of the data processing department. Assistant General Manager (EDP) is the top authority of the department. There are 70 personal computers in the company. 53 personal computers in the company are in local area network. Company is having 10 Mega Bytes personal computers back borne copper cabling. It has four signals: 1. Stores 2. Plant technical service 3. Illmenite Beneficiation plant! Acid regeneration plant 4. Pigment processing unit/laboratory There is a direct connection from IBM server to Purchase, Finance, Marketing and Personnel department. The entire Information Technology activities are monitored by Electronic Data Processing (EDP) section. KMML is using Oracle Related Database management system at backend and Power Builder as front-end. An integrated online application module developed in power builder is being used among finance, purchase, stores, marketing, personnel and production departments. The database is fed to the system by each department, which is required to generate various Management Information Systems to the management. A strict security control is incorporated in the operations of various modules.

ORGANIZATION CHART OF FIRE AND SAFETY DEPARTMENT

DEPUTY GENERAL MANAGER FIRE AND SAFETY

ASST GENERAL MANAGER

FIRE OFFICER

SAFETY OFFICER

LEADING FIREMAN

PLANT ENGINEER

FIREMAN

SAFETY INSPECTOR

8) FIRE AND SAFETY DEPARTMENT Fire and safety is a main department of KMML. It manages the process of giving security to the employees by giving successful training and giving license to employees and machines. The sections under fire and safety are: 1. Employee details managing: - In this section the details of the employees

are identified by separate employee codes. Here in employee code, employee name, designation, date of birth, date of joining and qualifications are recorded. These section supplies the details of employee to another section. 2. Employee training: - All the employees are trained for the successful

running up of KMML. The details of training is recorded when they gives each training. Employee code, serial number, date of training, course and remark are recorded. When an accident occurs the details of the training given to the employee is produced. 3. Employee accident: - This section handles the details of accident occurs to

the employee. Employee code, serial number, accident data, description of accident, the body part which was injured, unsafe condition or unsafe act, whether lost time accident or not lost time accident, the days lost are recorded. 4. Expo- Petr o-License: - This section stores the details of the license

provided to each machines. A different agency provides this license. It must have

to be renewed after the validity is lost. This section stores the serial number, item name, license number, tag number, last test, test type etc. 5. Lifting machines and tackles: - There are different lifting machines in

different location. These machines have to be tested and if any defect it is stored. The machines are given a hoist no., location, last test, tested by, defect, next test and remarks are stored.

6.

Pressure vessel: - This section handles different machines, which handle

the substance of high pressure such as LPG, CHLORINE etc. It is very difficult to handle these types of machines. It needs high security and to confirm whether the equipment is running smoothly. It contains serial no., section, pressure vessel, last test etc. 7. Mock-drill: - It is a section contains trained person to maintain the

security. If any accident occurs, the help of this person is supplied and reduces the complexity of accident. An accident controller is the head of this section.

JOINT GENERAL CHART ORGANIZATION MANAGEROF (TECHNICAL)

TECNICAL DEPARTMENT

ASST GENERAL MANAGER (TECHNICAL)

MANAGER (LAB)

MANAGER R&D

DEPUTY MANAGER (LAB)

DEPUTY MANAGER (TECNICAL)

SENIOR SCIENTIFIC OFFICER

DATA COLLECTOR

SCIENTIFIC OFFICER

STATISTICIAN

ASST SCIENTIFIC OFFICER

LAB TECHNICIAN

9) TECHNICAL DEPARTMENT Assistant General Manager (technical) is the head of this wing. This wing functions as a third agency to the production and maintenance department. The technical wing takes charge to research and development, Quality control, Laboratory and technical services. 10) RESEARCH AND DEVELOPMENT KMML maintain a fully equipped research and Development facility in the area of Pigment and paint technology with a view to establish world- class products and competitiveness. This excellent facility undertakes research, development and product improvement. Scientists and Engineers continuously pursue innovative technologies in the area of TiO2 pigment, quality improvement and other allied products. The technical and sales service wing extends all helps to customer in the field of applications and users. KMML's Research and development has achieved following tasks in recent times: 1. Developed new grade RC-802 with excellent balancing properties of glass and weather ability. 2. Successfully developed an improved process of oxidation plant. 3. Developed know how to convert iron oxide waste to bricks used for

construction. 4. Developed grade RC- 808, special grade for automotive coating. The following works are on progress: 1. Developing a grade suited for thin film plastic application. 2. Management of solid effluent

ORGANIZATION CHART OF PROJECT DEPARTMENT

DGM PROJECT

MANAGER PROJECT

DY MANAGER PROJECT

PROJECT ENGINEERS

ASST ENGINEERS

DRAWING OFFICERS

11) PROJECT DEPARTMENT Joint General Manager (Project) is the head of the wing. This wing is engaged in the expansion program of the company. They are engaged in the building up of new products etc. they also decide up on the future plans of the company. Some major projects on which they are working upon include: 1. A new MS plant of 2 lacks tones illmenite capacity per year 2. A new synthetic rutile plant of capacity 1.3 lacks 3. A new 100 tone per day Oxygen plant 4. Capacity enhancement of Ti02 plant in to one lacks tones per year. UTILITIES Assistant General Manager (utility) is the head of this department. The utilities consist of steam, compressed air and water. Two boilers having a capacity of 33 tonnes/hr each and one package boiler of capacity 8 tones/hr supply the steam. The compressed air for plant and instrument used is supplied at a pressure of 8 kg/cm2. There are four tube well pumps supplying water treatment plant.

SWOT ANALYSIS
S-STRENGTH 1. KMML is the only company in India producing Rutile grade Titanium Dioxide. 2. Constant up gradation of technology. 3. Raw materials are found in. nearby areas 4. Availability of cheap and best quality raw materials. i.e. Mineral sand consisting of illmenite, Rutile, Zircon etc. 5. The only integrated plant in the world having mineral separation plant, synthetic rutile plant, Titanium dioxide plant and all are closely located in one complex. 6. Profit making public sector undertaking with a total capital investment by the government of Kerala. 7. The company has achieved a break through in the export market. During the financial year 2011-2012 the company has earned the maximum foreign currency among the chemical factories of public sector undertaking in the state. 8. Technology perfected by internal research and development efforts.

9. Technological collaborations with the Russian Mining Company ROSSBORN for the production of Titanium Sponge. 10.The proximity of infrastructure facilities such as seaport, Railway station and International Airport is one of the greatest strengths of the company

W - WEAKNESSES 1. Lack of sufficient land for expansion projects and storing or disposal of hazardous waste. 2. Poor quality power and lack of captive power generation facility. 3. The internal control procedure relating to stores, raw materials including components, plant and machinery, equipment and other assets and for the sale of goods are not commensurate to the size of the company. 4. External/political/Governmental interference on company's day to day affairs impairing corporate governance and professional management. 5. Weight variation due to atmosphere effect of the package product. O - OPPORTUNITIES 1. More sales realization in domestic as well as foreign market. 2. Provision should be made for determination of unserviceable and damaged stores, raw materials and productivity 3. Steady growth of user industries like paints, plastics, cosmetics and ink. 4. Faster growth rate of market in Asian countries where manufacturing facilities are limited. 5. Unexplored value addition sector like Titanium metal, Zirconium

compound 6. Kerala state being made better known to the outside world with the expansion of tourism and infrastructure technical sectors. 7. Technical collaboration with ISRO in Titanium Metal production.

T - THREATS 1. Lower sales realization giants like Dupont, Kers -Mc Gee, Ishihara, and Crystal etc. 2. Duplication chances by stockiest. 3. Existing infra structure is very old and is need to be replaced. 4. Policy change of the state and central govt. regarding sand mining may affect the production. 5. Mining policy of central and state government can allow small time entrants to the sector.

FINDINGS
As the global price for the product to coming down gross profit are

decreasing and net profit through out the study. The long term solvency position of the company is satisfactory.
The upcoming of new mining companies of Titanium product will make

stiff competition on KMML.

The inability of the management to control effectively the resistance raised

by the local people in some radical issues.

CONCLUSION
In the previous chapters, the business activities of KMML studies comprehensively. The origin of the company and its undertakings is found out. It has been found out that the Government is playing major role for prospering the company. Manpower activities, welfare schemes provided to its employees and its great play in giving various training programmes have been positively revealed. The company is aiming at providing quality grades of TiO2 to its various customers according to their wants. The company is successful in increasing its production capacity from 22000 tones to 50000 tones and it is planning for its future. Dupont, USA is the

company's stiff competitor and company's marketing section keep tracks of its products and demand and supply. The company has a good liquidity position. The company is performing better in the recent years. The cordial and cooperate relationship between the management and the employees is the secret behind the success of this public sector company. All the departments in this organization are working hand to hand thus bringing out the best results. It may be included that the study has been done successfully keeping the objective in mind. I was very much benefited by this training at KMML It may be included that the study has been done successfully keeping the objective in mind.

BIBILIOGRAPHY

Davis Keith, "Human Behaviors at Work", Tata McGraw Hill

P.Varma, "Human Resource Management", S.K. Kataria & sons, New

Delhi Stanton William. "Fundamentals of Marketing", Mc Graw Hill C.R.Kothari, "Research Methodology methods and Techniques", Wishwa Prakashan, New Delhi Philip Kotler and Kevin Keller "Marketing Management www.kmml.com www.export-japan.com.inc Department Manuals Spreading Splendour (Monthly Newsletter from KMML) Company Brochures The KMML Standing Orders

Annual Report 2009-2010 Annual Report 2010-2011 Annual Report 2011-2012

APPENDIX
ABBREVATIONS

KMML
Ti02 ICICI SBI SBT PF DGM CITU INTUC RSP AGM AAO APO

: Kerala Minerals and metals Ltd

: Titanium Dioxide : Industrial Credit and Investment Corporation of India : State Bank of India : State bank of Travancore : Provident Fund : Deputy General Manager : Centre of Indian Trade union : Indian National Trade Union Congress : Revolutionary Socialist Party : Assistant General Manager : Assistant Administrative Officer : Assistant Plant Officer

AO HRD JGM

: Administrative Officer : Human Resource Development : Joint General Manager