Final Os Report-Binani Zinc - ABEY

REPORT ON ORGANIZATIONAL STUDY
CONDUCTED AT
BINANI ZINC LIMITED
EDAYAR,COCHIN
Submitted By,
ABEYMON FRANCIS
MBA 2010-2012
Under the guidance of: Dr. Mathew Joseph, Faculty (Mentor)
Organization Study Report Binani Zinc Ltd 2010-11
DECLARATION
I, Abeymon Francis, Student of Berchmans Institute of Management Studies,

Changanassery, affiliated to Mahathma Gandi University, Kottayam hereby declare that
the project is the result of my own study undertaken under the guidance of Dr. Mathew
Joseph, Faculty guide, Berchmans Institute of Management Studies.
I, also declare that this report has not been submitted anywhere for award of any other
degree / Diploma in any other University / Institute previously.
Place: Changanassery Abeymon Francis
Date:
Berchmans Institute of Management Studies MBA

AKNOWLEDGEMENT
I would like to take the opportunity to express my profound gratitude to all people who
have helped me with sound advice and able guidance.
I am greatly thankful to Rev. Fr. Tomy Padinjareveettil, Director Berchmans Institute

of Management Studies for providing proper encouragement in the completion of the
organizational study.
I express my sincere gratitude to Dr. Mathew Joseph, Head of the department of

Management Studies, Berchmans Institute of Management Studies, whose guidance and
support throughout the organizational study helped me to complete this report
successfully.
I place my sincere thanks to Mr. M.S Sreekumar, General Manager, HRD, Binani Zinc
Ltd. for permitting me to conduct the organizational study. Also I would like to thank the
members of all departments for their constant support and guidance.
I would like to express my profound gratitude Mr. Sajid Ur Rehman, Officer, HRD,
Binani Zinc Ltd. for all his support throughout my study.
Above all I would like to thank my God almighty whose divine guidance, have helped
me to complete this work successfully.

CONTENTS
DECLARATION....................................................................................................................................................................1
AKNOWLEDGEMENT ..................................................................................................................................................2
CHAPTER 1..........................................................................................................................................................................6
1.1 INTRODUCTION .................................................................................................................................................7
1.2 OBJECTIVES OF STUDY................................................................................................................................8
1.3 REASONS FOR SELECTING BINANI ZINC LIMITED FOR ORGANIZATION

STUDY ..............................................................................................................................................................................9
1.4 SCOPE OF THE STUDY................................................................................................................................10
CHAPTER 2.......................................................................................................................................................................11
2.1 INDUSTRY PROFILE .....................................................................................................................................12
2.2 ZINC INDUSTRY IN INDIA........................................................................................................................16
2.3 INTERNATIONAL SCENARIO .................................................................................................................17
CHAPTER 3.......................................................................................................................................................................19
3.1 COMPANY PROFILE .....................................................................................................................................20
3.2 PRODUCT PROFILE .......................................................................................................................................27
3.3 MAJOR CUSTOMERS OF BINANI ZINC LIMITED ...............................................................................31
3.4 RAW MATERIALS & WASTES .....................................................................................................................32
3.5 MISSION ................................................................................................................................................................33
3.6 COMPANY POLICY & PROCEDURES ................................................................................................34
3.7 COMPANY STRATEGY .....................................................................................................................................35
3.8 ORGANISATIONAL STRUCTURE.........................................................................................................37
CHAPTER 4.......................................................................................................................................................................38
4.0 VARIOUS DEPARTMENTS & THEIR FUNCTIONS .............................................................................39

4.1 HUMAN RESOURCE DEVELOPMENT & OCCUPATIONAL HEALTH SAFETY

DEPARTMENT ..........................................................................................................................................................39
4.1.1 SAFETY ..........................................................................................................................................................47
4.1.2 SECURITY .....................................................................................................................................................48
4.1.3 OCCUPATIONAL HEALTH CENTER ................................................................................................49
4.2 COMMERCIAL DEPARTMENT ...............................................................................................................50
4.2.1 MARKETING DEPARTMENT ..........................................................................................................51
4.2.2 PURCHASE DEPARTMENT ..............................................................................................................54
4.2.3 STORES DEPARTMENT .....................................................................................................................59
4.3 RESEARCH AND DEVELOPMENT DEPARTMENT....................................................................63
4.4 INFORMATION AND MANAGEMENT SYSTEMS DEPARTMENT ...................................66
4.5 FINANCE DEPARTMENT ...........................................................................................................................69
4.6 PROJECTS AND TECHNICAL SERVICES DEPARTMENT .....................................................72
4.7 PRODUCTION DEPARTMENT ................................................................................................................73
PROCESS BLOCK DIAGRAM ............................................................................................................................74
4.7.1 ROASTER PLANT ...................................................................................................................................75
4.7.2 LEACHING PLANT ................................................................................................................................77
4.7.3 ELECTROLYTIC PLANT ....................................................................................................................79
4.7.4 MELTING PLANT ...................................................................................................................................81
4.8 ENGINEERING DEPARTMENT ...............................................................................................................82
4.8.1 ELECTRICAL DEPARTMENT .........................................................................................................82
4.8.2 INSTRUMENTATION DEPARTMENT ........................................................................................85
4.8.3 MECHANICAL/MAINTENANCE DEPARTMENT................................................................86
CHAPTER 5.......................................................................................................................................................................88

5.1 FINANCIAL PERFORMANCE OF THE COMPANY .....................................................................89
5.2ANNUAL REPORTS .........................................................................................................................................90
5.3 FUTURE PLANS................................................................................................................................................92
5.4 PORTERS FIVE FORCE ANALYSIS.............................................................................................................93
5.5 SWOT ANALYSIS ............................................................................................................................................94
5.6 PROBLEMS FACED BY THE COMPANY ..................................................................................................97
5.7 SUGGESTIONS ..................................................................................................................................................97
CONCLUSION.................................................................................................................................................................98
BIBLIOGRAPHY............................................................................................................................................................99

CHAPTER 1

1.1 INTRODUCTION
Binani Zinc Ltd. is a pioneer in the manufacture of high grade electrolytic zinc in India.
Since its inception in the year 1967, Binani Zinc has paved the way integrating systems
for maintaining product quality, environmental safety, occupational health and social
accountability. Binani Zinc Limited is engaged in the manufacture and sale of zinc metal
and its by-products sulphuric acid & cadmium metal.
Binani Industries Limited ranks within the first 20, amongst the top 200 large public
limited companies in terms of Capital Output Ratio; BIL has employee strength of around
4000 people.
It was in the turbulent times of 1872, when the ancestors of Binani, Seth Pragdas & Seth
Mathuradas Binani ventured into the trading of non-ferrous metals. Later on, the son of
Seth Mathuradas, Seth Govardhandas, a man with profound vision, had seen great
potential in manufacturing rather than just trading in non-ferrous metals.
Binani Zinc is the pioneer in the manufacture of high grade electrolytic zinc in India
since 1967. The reigns of this wide spreading business ere with Late Shri Ghanshyam
Binani, the only son of Seth Govardhandas Binani. His individual expertise and time-
honed skills steered the organization towards many milestones ahead. In the span of
1970’s – 80’s Cominco Binani Zinc Limited upgraded its technology to be on par with
the latest in the world. It also became the first plant in the country to commence
production of special high-grade electrolytic zinc with 99.995% purity.
Today Binani Zinc being part of Binani Industries Limited is the second largest producer
of Zinc in India. The company enjoys the reputation of being a leading and most
preferred supplier of pure zinc in India. It is located at a place called Binanipuram in
Ernakulum, Kerala. Its corporate office is at Kolkata and has another office at Mumbai.
This strategic location, named as Binanipuram, has proven ideal as it facilitates the

loading and off-loading of zinc concentrate, provides cost efficient power supply, ease in
transportation, abundant water and easily available resources, inclusive of a literate work
force. The main product produced by Binani Zinc Limited is zinc and its bye products are
sulphuric acid and cadmium, which are used by other industries. It has the Capacity of:-
Zinc - 38,000 MTPA
Sulphuric Acid - 51,000 MTPA
Cadmium - 65000 kg PA
1.2 OBJECT IVES OF STUDY
PRIMARY OBJECTIVE
 The main objective of the study is to get an idea about the whole organization as
such and to understand briefly about the nature of the industry
SECONDARY OBJECTIVES
 To get an organization structure of the company and to get an idea about the
various departments and its functioning.
 To know how the key business processes are being carried out in a manufacturing
industry.
 To know about various policies and programmes of the company.

1.3 REASONS FOR SELECTING BINANI ZINC L IMITED FOR

ORGANIZATION STUDY
Binani Industries Limited has been a pioneer in non-ferrous metal industry in face. It is
the first company to manufacture zinc in India in the private sector. They also produce
Sulphuric Acid and Cadmium as by-products. The plant has the capacity to produce
38,000 MT per annum. In India, zinc is manufactured only by two companies- Binani
Zinc Limited and Hindustan Zinc Limited. Hindustan Zinc Limited is the dominant
player in Indian market. Binani Zinc Limited is the only Zinc manufacturing company in
Kerala. Over the years, Binani Zinc limited has undergone many transformations in its
capacity, technology etc. under the leadership of Sri. Ghanshyam Binani, with the stinted
support of qualified and dedicated staff.
 It is the 1st Indian company to operate a customized zinc smelter designed for
100% imported zinc concentrate. It is the 1st Indian company to produce special
high grade quality of zinc with 99.995% of purity, The 1 st in the private sector and
one of the two primary manufacturers of zinc in India, The only company to
install a converter heat exchanger system in the acid plant designed by M/s. Lurgi,
Germany for energy conservation.
 It is among the 1st to be recognized by the Department of Science and
Technology, Government of India for its R&D facility and laboratories.
 The 1 st to be recognized by the bureau of Industrial Cost and Prices as the Best
Zinc Plant in the country for the steps taken in energy conservation.
 First in India and in Asia, to be certified by BVQI for the four International
accreditations viz., ISO 9001:2000, ISO 14001:1996, SA 8000:1997 as well as
OHSAS 18001:1999 for installation and maintenance of Environmental
Management System, Occupational Health and Safety Assessment Series
respectively.

1.4 SCOPE OF THE STUDY
The organizational study was intended to get Industrial exposure. The study intends
for a period from 4 to 31 May 2010. The study was mainly conducted to understand
the functions of different departments of the Company. Binani created a name in the
world zinc industry, by pioneering the manufacture of high grade electrolytic zinc in
India.
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CHAPTER 2
11

2.1 INDUSTRY PROFILE
Zinc is considered to be the fourth most important metal used in the world following
steel, aluminium and copper. This metal is primarily used in the steel industry for
galvanizing process. The other uses include used in making coins and pennies, used in
die-casting in automobile industry, making battery container parts, used as a substitute to
tin and lead pipes, ingredient in water colors and paints, activator in rubber industry etc.
Also because of the fact that zinc does not corrode due to the non-acidic atmospheric
corrosion, it makes the metal worth to use in for extending the life of building structures
and modes of transport. The metal also comes in good use as a fungicide, herbicide and
rodenticide.
Zinc is available in the atmosphere in large quantities. The various external sources in
which zinc is concentrated in the atmosphere are electric services, petroleum refining,
crude petroleum and natural gas extraction, manufacturing of fabricated rubber products
and metal heating and plumbing products, production of inorganic chemicals etc. The
various indoor sources for the same contribute to slightly higher zinc content in the
atmosphere and include infiltration of outdoor air; smoking, cooking, etc. Zinc is
extracted from zinc ores mostly sphalerite, zincite and smithsonite and the world mine
production of zinc concentrate sums up to around 10008000 tons annually. The zinc
concentrates are then used to produce the zinc metal and around 10319000 metric tons of
metal is produced per year. China is the largest producer country of zinc in the world in
context of both metal and concentrate production.
The world consumption of zinc annually totals up to around 10774000 tons. The three
major nations arising the highest demand for zinc are
• China
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• USA
• Japan
Regarding the zinc consumption pattern, the metal has a vast number of uses in different
fields and more than 50% of zinc consumption is done by the automobile and
construction industries. 20% of the total zinc demand arises from the alloy industry such
as bronze, brass etc that are used in the construction and manufacturing sectors. The
remaining 30% demand is shared equally by die cast zinc parts and other products like
batteries, rubber goods etc. The consumption trend in the world has shown a rising trend
during the last 50 years and is still increasing with the new changes in technology.
Currently there is a deficit in the zinc world market when world supply and demand is
compared and the deficit is as high as 455000 tons in context of metal and 766000 tons in
context of mine production.
The major zinc players in the world market are Canada and China. Though china was a
net exporter of the metal as it is the maximum zinc producer but its domestic
consumption demand doesn’t allow the country to take a lead in the world exports. The
major exporter countries of zinc metal along with their export figures are
• Canada (712000 metric tons)
• China (472000 metric tons)
• Australia (443000 metric tons)
• Korea (243000 metric tons)
• Netherlands (210000 metric tons)
• Finland (208000 metric tons)
• Mexico (166000 metric tons)
• France (143000 metric tons)
• Norway (133000 metric tons)
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• Japan (95000 metric tons)

• Spain (79000 metric tons)
The world exports of the zinc metal have been constantly decreasing and as there is a
deficit in the world market now, the imports of the metal have become more than the
exports done in the world. The major countries that import zinc with their import figures
are
• United States of America (878000 metric tons)
• China and Taiwan (304000 metric tons)
• Germany (231000 metric tons)
• Belgium (215000 metric tons)
• Italy (205000 metric tons)
• Netherlands (199000 metric tons)
• Singapore (148000 metric tons)
• France (127000 metric tons)
• Korea (110000 metric tons)
• United Kingdom (105000 metric tons)
• China (69000 metric tons)
Zinc is widely used metal and used in protecting steel, diecasting and also as chemical
compound. While zinc was known to the ancients, its production with modern technology
started in India only in 1966, with the Smelter at Debari, While the zinc production
worldwide was 7.2 million tonne in 1989, the Indian production capacity of zinc was only
99,000 tonne.
Zinc metal uses are based on a number of properties and these properties are being
exploited for variety of applications in defense and other essential industries. The
principal processes for manufacturing are horizontal retorts, electrolysis, vertical retorts,
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electrothermic, overpelt and blast furnace (Imperial Smelting Process). Out of these, most
important processes are electrothermic and blast furnace manufacturing, covering 93% of
the total zinc production in the world. The electrolytic zinc process consists of dissolving
zinc bearing materials to zinc sulphate solution which is purified to satisfactory
electrolyte and recovered as metallic zinc by electrolysis. The Imperial Smelting process
is pyro-metallurgical process for combined production of lead and zinc. This will include
raw material handling plant, smelter and gas cleaning plant, smelting blast furnace, zinc
refinery, lead refinery, and recovery of high value metals. Zinc concentrates are the raw
material for zinc smelter. Zinc ore consists of sulphate, sulphide mineral with galena,
chalcopyrtite and copper sulphide minerals. Zinc concentrates from zinc-lead ores
contain about 59% zinc andd complex ores have 54% zinc. The pollution
control/environmental requirements in terms of water, air, sulfur dioxide emission, etc.,
are important. Secondary zinc production has started in India in the last few years.
Secondary zinc is recycling process and thus adds to the economy. The main sources of
secondary zinc are scraps, drosses and fluxes. The process of electrolyzing is similar to
primary zinc products. A large number of recovery units with capacity of 1 tone per day
to 15 tonne per day have started and they are importing basic raw material (zinc
concentrate) from abroad.
Market influencing factors

 Level of stocks with London Metal Exchange
 Fluctuation in the world demand for zinc
 Growth rate of the zinc producing countries
 Changes in the prices of the other substitute metals
 Funds in the zinc sector
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2.2 ZINC INDUST RY IN INDIA
The Indian zinc industry consists primarily of two players, namely Hindustan Zinc and
Binani Zinc. Hindustan Zinc is an integrated producer having its own mines and has a
market share of more than 60%. Binani Zinc is a custom smelting producer. All the major
zinc ore mines in India viz. Rampura Agucha, Rajpura Dariba and Zawar mines are
located in the state of Rajasthan and all of these are under the control of Hindustan Zinc.
The zinc production capacity in India is set to register robust growth after the government
allowed privatization of the state owned company Hindustan Zinc in 2002. The total
production capacity stood at around 707,000 tonnes in Financial Year 08. The zinc
production has registered a strong growth in India in the last few years. It stood at around
4% of total zinc production in the world in 2007. The zinc production increased from
265,000 tonnes in 2004 to 458,000 tonnes in 2007, registering a growth of 20% CAGR.
The zinc consumption has increased from 347,000 tonnes in 2004 to 470,000 in 2007,
backed by demand from infrastructure and industry. Important to add that galvanizing
accounted for around 70% of the total consumption.
The demand for zinc is expected to remain strong in the coming years on account of
growth in the key zinc consuming industries like infrastructure, realty and manufacturing.
Moreover, the growth in automobile and consumer durables industry would also further
aid the increase in consumption of zinc.
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2.3 INTERNATIONAL SCENAR IO
The two contemporary technologies are roast-leaching electrolysis and Imperial Smelting
process (ISP). 80% of production of zinc in world is by electro-winning process and 14%
by ISP. The global production at present is about 7.2 million tonne (28% production is
from Western Europe, 22% from USA, 21 % i s from Asia and erstwhile USSR and
China produces about 27-28%). Production of zinc in USA, Europe and UK have
decreased as a result of decline in mining of zinc ore and concentrates. Manufacture of
Zinc in these countries is dependent on import of concentrates. Canada, Peru, China,
former USSR have increased their production of zinc and there is increase in capacity
build-up in Canada, Peru, China, India, Brazil, Mexico and some other countries.
Addition of investment in zinc production is not expected. Zinc’s meteoric rise in prices
to over $4,000 per tonne in 2006 appears to have been shortlived, with values tumbling
back to $2,500 in 2007. And while this may have dulled the metal’s attraction as a
speculative investment, those involved in the making and using of the zinc – producers
and their zinc customers alike – are no doubt secretly heaving a sigh of relief. At $4,000
plus, though zinc consumption continued to rise, substitution was being talked of and was
perilously close to becoming a reality. At today’s price levels, while there are pressure
points and bottlenecks along the supply chain, it would seem zinc is approaching an
equilibrium price allowing the required capital investment in new capacity that is needed
to meet healthy and growing demand – notably from the galvanizing business – but not
so high as to damage this consumption base.
In recent years growth in demand for zinc has been led by emerging economies, notably
China. Last year usage in Brazil, Russia, India and China (the BRICs) rose by 12% to
4.5m tonnes, to account for 40% of global consumption, up from just 22% in 2000.
Global demand grew by just 2.9% in 2007 to 11.3m tonnes, following a 3.6% expansion
17

in 2006. Demand was weak in the OECD and some parts of Asia in 2007. There was little
growth in OECD demand in 2007, and usage fell in a number of countries. According to
the International Lead Zinc Study Group (ILZSG), US consumption fell by 8.4% and EU
consumption rose by just 1.4%. In Asia (excluding China and India), consumption in
Japan fell by 0.8%, in South Korea by 4.3% and in Taiwan by 20%. Clearly,
exceptionally strong growth in China and India was at the expense of consumption
elsewhere in the region. These trends appear to be persisting in 2008. ILZSG data suggest
that global usage of zinc in the first quarter, at 2.77m tonnes, was 1.6% higher than in
2007. Consumption within the BRICs was 8.4% higher, while offtake elsewhere was
down by around 5%. The growth in Chinese consumption remains strong. Within the
BRICs, China is by far the largest zinc consumer, accounting for 32% of global usage.
Chinese consumption in the first quarter was up by 9.4% year on year. The latest
economic data suggest that industrial production is rising by around 16% per year, while
fixed asset investment is running 25% ahead of last year. In response, galvanised steel
production continues to expand rapidly.
This reflects the buoyant economic environment, and the significant investment in new
galvanising capacity as steel mills in China move further down the value chain. In 2007
domestic galvanised steel output rose by 30% to 18m tonnes. In the first four months of
this year production was around 20% higher in year-on-year terms. Demand for zinc
within China has benefited from rapid growth in transport and investment in
infrastructure and non-residential construction. Production of motor vehicles, washing
machines, refrigerators and airconditioners have all registered year-on-year gains of over
15% to April, while production in the shipping sector was 60% higher. We forecast a
9.3% increase in Chinese refined zinc consumption in 2008, followed by further growth
of 9.6% in 2009 and 8.7% in 2010.
18

CHAPTER 3
19

3.1 COMPANY PROFILE
The Braj Binani Group is a well-diversified industrial house with a 138-year history
behind it. Today, the group is actively working in the core sectors of Cement, Zinc, Glass
Fibre and Downstream Composite Products. Working in complete synergy across
verticals, across the world. By understanding the needs of an evolving world, the Braj
Binani Group is charting a path to the future.
In 1967, ‘Binani’ crossed a milestone in the world zinc industry by pioneering the
manufacture of high-grade electrolytic zinc in India. The reigns of this expanding
business was held by Late Ghanshyam Binani, the only son of Seth Govardhandas
Binani. His individual expertise and time-honed skills steered the organisation towards
many more milestones.
In the span of 1970s-80s Cominco Binani Zinc Ltd. upgraded its technology to be at par
with the latest in the world. It also became the first plant in the country to commence
production of special high-grade electrolytic zinc with 99.995% purity.
In 1983 Binani Metals Ltd. was formed merging Binani Metal Works.
By 1991, the company, having surged to a production capacity of 38,000 tonnes per
annum of zinc and zinc based products, was re-christened as Binani Zinc Ltd. In 1997,
the company diversified into the manufacture of cement by establishing Binani Cement
Ltd. This pivotal move laid the foundation for the company’s most successful decade.
One that also saw the company diversify into the manufacture of glass fibre. The mantle
of responsibility passed on to Mr. Braj Binani, who following the footsteps of his father,
Late Ghanshyam Binani, has successfully carried forward the family tradition of growth
and excellence, and is today heading the ‘Binani – Braj Binani Group’.
20

The group has come a long way from trading to production of zinc to the manufacture of
glass fibre and cement, taking on new challenges and preparing itself to make the most of
global opportunities.
Binani was the first in India to have a custom zinc smelter for manufacture of electrolytic
zinc. Since its inceptions in the sixties, Binani Zinc has constantly been modernising and
upgrading its technology in step with global advances.
Binani Zinc has won several laurels for its various efforts in environment management
and energy conservation. In its effort to minimise the environmental impact of zinc
production, its solid waste residues are stored in secured landfills designed and built to
exacting US EPA standards. Binani Zinc is also certified under the ISO 9000, ISO 14000,
SA 8000 and OHSAS 18000.
Zinc Plant
The ultra-modern zinc production plant has a capacity 38,000 MTPA. The premises of
the plant is located across 110 acres of land in lush green, verdant Edayar Village,
Ernakulam District, Kerala, on the banks of serene Periyar River, 15 km upstream from
the Cochin Port and 13km from Cochin International Airport.
This strategic location, named as Binanipuram, has proven ideal as it facilitates the
loading and off-loading of zinc concentrate, provides cost efficient power supply, ease in
transportation, abundant water and easily available resources, as well as a literate
workforce. The plant also has the capacity to treat concentrates of varying compositions,
giving it an unassailable edge over integrated producers.
21

Awards & Accreditations
Over the years, Binani Zinc has achieved several awards to commemorate its success in
various fields such as environment conservation, excellence in manufacturing processes
and quality standards.
Environment
 Kerala State Pollution Control Board award in 1990, 1991 & 1993.
 Kerala State Pollution Control Board award for securing first place among large
scale industries in making substantial and sustained achievement in pollution
control for the year 2007.
 Kerala State Pollution Control Board award for securing overall excellence in
making substantial and sustained effort in pollution control for the year 2008,
among large scale industries.
 Green Tech Environment Excellence Award in metals and mining sector – Silver
- 2008.
 Green Tech Environment Excellence Award in metals and mining sector – Gold -
2009.
 Leadership & Excellence Award for Environment, Health & Safety instituted by
Confederation of Indian Industries [CII] - 2009.
 Kerala State Pollution Control Board award for securing overall excellence in
making substantial and sustained effort in pollution control for the year 2009,
among very large scale industries.
Safety
 Safety Award from National Safety Council in 1997.

 Excellence Award for Safety Management from NSC in 2006
22

 Certificate of excellence for outstanding performance in Industrial Safety from

Government of Kerala. Category – Best Safety Committee in 2008
 Certificate of excellence for outstanding performance in Industrial Safety from
Government of Kerala. Category – Best Safety Committee in 2009.
 Best Safety Committee award from National Safety Council of India – 2009.
 Best Safety conscious worker, state level, from National Safety Council in 2009
Health
 Certificate of excellence for outstanding performance in industrial safety from

Government of Kerala. Category – Best Occupational Health Centre – 2008.
 Certificate of excellence Safety Award from Government of Kerala. Category –
Best Occupational Health Centre – 2009.
 Best Factory Medical Officer from Dept. of Factories and Boilers, Government of
Kerala in 2009
Energy
 Energy conservation award from Government of Kerala in 1993, 1994, 1995 &
1996
 Energy conservation award from International Greenland Society in 1994
General
 Industry Excellence Award from Institution of Engineers in 1998

 Indian Institute of Metals – Non-Ferrous Best Performance Award – 2009
23

An enviable track record... spread over five decades.
1960s
• In 1962 Binani entered into a technical and financial collaboration with Cominco
Limited Canada to form Cominco Binani Zinc Limited and created history becoming the
first Indian company to manufacture primary high-grade electrolytic zinc in India in 1967
• It was the first Indian company to manufacture high-grade electrolytic zinc at

Binanipuram, Kerala in 1967
1970s
• By leveraging technology and keeping up with a burgeoning market, Binani Zinc

Limited successfully increased its capacity from 12 kty to 20 kty
1980s
• Binani Zinc Limited further upgraded its technology with assistance from M/s. Lurgi,
Germany
• Binani Zinc Limited commenced production of special high-grade electrolytic zinc

ingots with 99.995% purity
1990s
• Cominco Limited carted off its financial support from its operations in alignment with
their world policy. Cominco Binani Zinc was re-christened as Binani Zinc Limited on 3rd
March 1991.
• In 1995 Binani Zinc entered into collaboration with M/s U.M. Engineering Limited to
adopt its state-of-the-art technology and increased its capacity to 30 kty
24

2000-09
• Binani Zinc Limited received an ISO 14001 and an ISO 9001:2000 Certification from
Bureau Veritas Quality International for their Environment Management System and
Quality Management System respectively
• Binani Zinc Limited adopted the '5s' housekeeping management practice and tagged it
with the international accreditation ISO 14001:1996. In April 2001, voluntary
commitment to quality was demonstrated by getting the international accreditation on
quality ISO 9001:2000. Leveraging people potential, Binani Zinc Limited became the
first company in the manufacturing sector to go for international accreditation.
Human Resources/Industrial Relations
Industrial relations continue to be maintained at cordial level, and the productivity-based

long-term settlement provisions are implemented. Learning and development is the focus;
with training and development imparted at 4.45 mandays per employee per year on the
average.
Occupational health of employees are closely monitored through annual medical

examination conducted, and lifestyle consultation at our Ghanshyam Binani Health
Centre (GBHC). Industrial hygiene study recommendations are implemented. Training,
awareness and competence to employees, contractors and contractors’ labour on
industrial safety, worker safety, and workplace safety are provided.
25

Corporate Social Responsibility
The Braj Binani Group is a multifaceted organisation in the truest sense of the word. This
philanthropic philosophy has seen it promoting several schools, colleges, libraries,
educational institutes and noteworthy institutions throughout the country.
The Group’s Social Initiatives
>> The company, through its initiative , The Ghanshyam Binani Health Centre, provides
free diagnosis camps for its employees, their family and the nearby community also.
>> Ghanshyam Binani Foundation (the Binani charitable body) periodically conducts
free eye camps, offers donations and provides scholarships to the underprivileged
>> In another notable initiative, the group has instituted the Ghanshyam Binani
Children’s Bravery Award, an annual award event.
>> The group has built a community hall in edayar pachayat where a social initiative
called “PAKAL VEEDU” functions now. It is a place where the older people of the
community are taken care of , during the day. The GBHC conducts frequent check up
camps for the inmates.
>> Another company initiative is the supply of drinking water for the people living in the
area.
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3.2 PRODUCT PROFILE
The Binani Zinc unit at Kerala has the distinction of pioneering manufacture of special
high-grade zinc of 99.99 / 99.995% purity and is the preferred source for customers
across all industry segments.
Main Product : High grade / special high grade zinc metal
By-products : Cadmium & Sulphuric acid
Capacity : Zinc metal - 38,000 mtpa
Sulphuric acid - 51,000 mtpa
Cadmium - 65,000 kgs per annum
27

ZINC:
High Grade (%) Special High Grade (%)
Zinc Min. 99.95 99.99
Lead Max. 0.025 0.003
Cadmium Max. 0.020 0.003
Iron Max. 0.010 0.003
Tin Max. 0.001 0.001
Copper Max. 0.002 0.002
Thallium -- 0.001
Indium -- 0.0005
Total Impurities Max. 0.05 0.01
Available as: Zinc Ingots - Weight: 25 Kg (approx.)
28

CADMIUM:
Cadmium 99.95 Min.
Zinc 0.01 Max.
Copper 0.02 Max.
Lead 0.025 Max.
Iron 0.002 Max.
Nickel 0.002 Max.
Antimony 0.001 Max.
Available as: Plate -

Arsenic 0.002 Max.
Size: 305 mm x 205 mm
Thallium 0.002 Max. x 6.5 mm and Weight
(approx.): 4 Kg.
Total Impurities 0.05 Pencil - Size: 12.5 mm
dia. x 225 mm long and
Weight (approx.): 200 gm
29

SULPHURIC ACID:
% by Mass
Total Acidity (As H2SO4) 98.0 Min.
Residue on Ignition 0.02 Max.
Iron 0.05 Max.
Lead 0.005 Max. Available as: Naked Ex-

works, Binanipuram
Arsenic 0.004 Max.
PRODUCT PRICES:
30

3.3 MAJOR CUSTOMERS OF BINANI ZINC LIMITED
ZINC:
 NATIONAL PANASONIC
 Eveready industries Ltd.
 Phonex industries Ltd.
 METADUST
 Ganga Jamuna Ltd.
 Southern metals and alloys Ltd.
 Jeep.
 Demorna chemicals Ltd.
 Sargam Metals Ltd.
SULPHURIC ACID:
 Vyshak chemicals Ltd.
 Narmada chemicals Ltd.
 Hindusthan news print Ltd.
 Sud Chemicals Ltd.
 Reliance dye chemicals Ltd.
 Trishul chemicals Ltd.
 Coods agroLtd.
CADMIUM:
 Anil metals company.
 Southern metals market
 S.K chemicals Ltd.
31

3.4 RAW MATERIALS & WASTES
RAW MATERIALS:
The raw material used for producing Zinc is Zinc Concentrate (called calcine) which is
imported at the rate of 66000 MT/YR and the fuel 5.1 KL/day.
WASTES:
LIQUID WASTES:
 The liquid effluent of 550 m3/day generated from process plant utility services,
DM plant and Supernatant solution from Jarosite pond is discharged into Periyar
River after treatment.
 For treating the effluent an effluent treatment plant consisting of equalization
tanks, neutralization tank, Clariflocculator and collection tank are provided.
SOLID WASTES:
 Dry Jarosite from leaching and purification plant containing iron, Zinc, Lead,
Cadmium, Copper, Nickel pumped to Jarosite pond.
 ETP sludge for disposal in Jarosite pond.
 Gypsum and anode used from cell house – Jarosite pond.
 Primary and secondary cake leach residue.
 Zinc ash from zinc melting furnace.
 Nickel cake from leaching and purification plant.
 Thallium cake from leaching and purification plant.
32

 Spent V2O5 catalyst from roaster and acid plant.

 Lead dross from cell house.
 Spent oil from captive power plant.
3.5 MISSION
>Forge ahead as a world-class organisation in the core sector industry in India and
abroad.
>Explore opportunities and enhance stakeholder value through ethical practices.
>Relentlessly pursue the global movement for a ‘customer-driven, quality-oriented,

socially-conscious’ industrial corporation.
>Adopt, adapt, assimilate and integrate technologies from global giants, thereby offering
value-added products and services.
>Adhere to the highest standards in manufacturing; over and above stringent

environmental stipulations.
>Pursue research and development activities diligently, consolidating on its track record
of innovation and breakthroughs in manufacturing practices on a state-of-the-art
technology platform.
>Promote human values at the forefront and nurture its people with a deep-rooted sense
of employee care, concern and commitment to people; them being considered as assets of
high intrinsic value.
33

3.6 COMPANY POLICY & PROCEDURES
1. Binani Zinc Limited is engaged in the manufacture and sale of zinc metal and by-
products sulphuric acid and cadmium metal.
2. The company considers quality of its products and services, environmental control,
safety and health of all its employees and social accountability as the prime
management responsibility and strive for continual improvement.
3. The company is committed to comply with social accountability standards all existed
national and local applicable legislations including all legal and other requirements
pertaining to environment, occupational health and safety.
4. The company will encourage waste minimization and reutilization as well as recovery
of valuables from waste stream.
5. The company will continuously strive for energy conservation in all its operation and
process.
6. The company will endeavor to ensure that the people and the environment are not put
to unacceptable risks by adopting world class environment friendly operations and
processes and by ensuring the use of relevant personal protection equipment.
7. The company will impart training to all its employees in creating awareness to
upgrade their knowledge on all aspects of technology and plant operation, quality,
environment, health, safety and social performance.
8. The company will interact with its supplier on a professional and fair basis and select
them on the basis of quality, timely delivery and cost.
9. The company will interact with its customers to continually assess their needs and
expectations and ensure total customer satisfaction by maintaining consistent quality
of its products and services with the involvement of its employees.
34

10. The company will promote transparency and openness in its relationship with its
employees and the community and treat them in a fair and respectful manner.
11. The company will display the policy in its premises and also in the brochures
published for the benefit of customer, supplier, employees and other interested
parties.
3.7 COMPANY STRATEGY
 The core strategy is based on consolidation and sustainable growth. The

investment strategy of the company aims at becoming a low cost producer in all
its business and in upgrading technology to meet stringent product quality
requirements. Quality is the mantra of the organization.
 Ever since its inception it has been in the forefront of providing quality products
and services to its customers with equal emphasis on environmental pollution
control and energy conservation. It maintains commendable grade of quality in all
levels of its operation and high level of its productivity by adaptation of state of
art technology. The customer centric manufacturing and satisfaction are the main
forte of the quality management satisfaction.
 The approach is customer centric and the production of 30000mt of zinc/ annum.
But the scarcity of raw material is the main problem faced since raw materials are
basically imported. The implementation of management like ISO 9000, ISO
35

14000, ISO 18000, SA 8000 provide the company with a string orientation
towards an unmatched paradigm for world class manufacturing.
 Modernization and up gradation program was undertaken over a period of ten

years from 1985-1995 in collaboration with various leaders in non ferrous metal
industries like Lurgi ( Germany), Mechim ( Belgium). The state of art technology
and automated plant and equipment were installed. Earlier the company entered
into a technical and financial collaboration with a Canada based Cominco Ltd.
World leaders in the field of non ferrous metals to form Cominco Binani zinc Ltd.
 The company has entered into collaboration with Um engineering Belgium for
modernization and expansion of its leaching purification plant. The technology
for roasting and electrolytic plant of the zinc smelters is provided by Lurgi,
Germany. The technology for the tank house envisaged for the brown field
expansion at the company will be provided by Um engineering Belgium.
Technology and operational back up collaboration has been tied up with Korea
Zinc Corporation and Korea Zinc Company limited for all areas of zinc plant
except tank house for the brown field expansion.
36

3.8 ORGANISATIONAL STRUCTURE
37

CHAPTER 4
38

4.0 VARIOUS DEPARTMENTS & THEIR FUNCTIONS
4.1 HUMAN RESOURCE DEVELOPMENT & OCCUP AT IONAL HEALTH

SAFETY DEPARTMENT
ASST. VICE PRESIDENT (HRD&OHS)
GENERAL MANAGER GENERAL MANAGER CHIEF MEDICAL
(ADMINISTRATIONS) (HRD) OFFICER
Dy. GENERAL MANAGER Sr. MANAGER
(INDUSTRIAL RELATIONS) (SAFETY)
DEPUTY MANAGER
WELFARE OFFICER PERSONNEL OFFICER
NON MANAGERS AND WORKERS
39

HUMAN RESOURCE DEVELOPMENT DEPARTMENT
FUNCTIONS
 Recruitment and selection

 Induction
 Training and development
 Public relations
 Industrial relations
 Performance Appraisal
 Leave Administration
 Separation of employees
 Punishment procedure
 Grievance procedure
 Wages and salary administration
 Provident fund
 ESI Scheme
 Gratuity
 Welfare activities
 Medical facilities
 Educational facilities
 Assistance to distribution
 Promotions
40

1. SELECTION AND RECRUITMENT

The department where there is a vacancy will sent a Staff Requisition to the HR
Department containing the job requirements. A fixed time will be allotted for the receipt
of application. The application received will be scrutinized and shortlisted. Hence the
final interview and medical check up will be carried out and it will be shortlisted. In case
of vacancies the first preference will be for lateral transfer and then for promotion.
The first scrutiny and short listing will be done by HRD. But the final scrutiny and fixing
of interview date will be done with the consent of the General Manager of the
department. The final appointing authority will be the President and the interview is rest
to him. Then the offer letter will be sent for the medical exam.
2. INDUCTION
Induction will help in familiarizing with the working environment. The training period
for the managerial staff is 1 year and that for workmen is 2 years. The probation period is
6 months.
3. TRAINING AND DEVELOPMENT

Binani Zinc is an organization following 3 TIER SYSTEM. Either a centrally organized
training will be provided or specific programs conducted by resource persons from
outside will be organized. This may include Individual Employee Contact Programme,
which is conducted for identifying the strengths and weaknesses in the employees and
also to understand their perception about the management.
Also Knowledge and Skill Upgradation Program is conducted for non-managerial staff
for occupying the higher position in the management category in terms of knowledge,
skill and behavior. Cross Functional Exposure Program is a training program intended for
management staff for career development. Also Learning Center Initiatives are taken in
41

which one among a group will take a session for the group. This is done in order to create
an informal learning atmosphere.
4. PUBLIC RELATIONS
Planned and sustained effort is taken to establish and maintain goodwill and mutual
understanding between an organization and its public. It includes the relation with the
employees, community nearby and government. The programs like Deepawali
celebrations , Founder’s day celebrations (May 3rd) is informed to the employees and the
family members. Also it plays a major role in internship of new employees, helping them
to fit into the organization. As part of public relations, whenever mock drills are
conducted the near by communities are informed about it, so that they do not get panic at
the siren given at the mock drill. The financial assistance is provided for religious and
social institutions. Also the medical camps being conducted are informed to the public.
But the company does not give much priority to the media relations, and responds only to
the media publications made about it. The public relations office is concerned with the
publication of Binani home journal and also with the subscription of other dailies,
magazines and journals. All advertisements about the company in magazines, the
financial assistance given to various institutions, the letters to the government, the
company sponsorship offered by the company, goodwill letters, thank you letters,
clarification letters, etc are forwarded through the PRO.
5. INDUSTRIAL RELATIONS
There exists cordial relationship between the trade unions and the management and hence
the industrial relations is very smooth. There exists three unions in Binani Zinc Ltd.
namely
42

 Cominco Binani Zinc Employees Union

 Cominco Binani Zinc Employees Association
 Cominco Binani Zinc Employees Organization
Each of these trade unions has secured 20 % and more in the referendum conducted.
6. PERFORMANCE APPRAISAL SYSTEM
The performance appraisal system is done effectively each year for the managerial staff
of the company. At the begining of each financial year the employees are asked to
prepare a goal sheet. This is a detailed report of the activities they intend to do in the
financial year. The report also contains the ways in which they intend to accomplish these
objectives. These goal sheets are preserved.
During december the company makes an audit of the activities of the employees and
check whether the objectives are being accomplished or whether steps for
accomplishment are being taken. If there is any non conformity, the employee is given
an extra two months time to improve. If the company is satisfied with the emlpoyees
work, he will be rewarded.
Career Planning and Promotional policy
Career planning of an employee is done at the time of recruitment. The promotional

policy of the employees in the company is simple. There is a basic requisite for the
employees to hold each post in the company. If there is any vacancy in the company, the
employees are preferred over outsiders. The candidates who satisfy the conditions are
promoted to the vacant post.
The promotional policy of the company is only applicable to the managerial staff.
43

7. LEAVE ADMINISTRATION
For workmen, the leave administration is as per the long term settlement ie., casual leaves
shall be granted to permanent workmen at the rate of 10 days in a calendar year. Also
privilege leaves shall be granted. Sick leave shall be granted to those who are not covered
at the ESI scheme at the rate of 7 days with pay in a calendar year. Medical certificate
should be provided for more than 2 days of sick leave. Compensatory off should be
granted within the same month or within 2 months immediately following the month in
which the office was due.
For management staff, there are 11 casual leaves and 30 privilege leaves. Also there is
leave application book for each employees.
8. SEPARATION OF EMPLOYEES
The separation of employees can be through resignation or retirement. In case of
resignation the person has to give one month notice (for GM’s and above 3 months
notice). In case of retirement character certificate, clearance certificate, service
certificate, etc are issued. All the benefits are given on the retirement day itself.
9. PUNISHMENT PROCEDURE
For workmen, the whole procedure is as per the standing order. Before taking action, the
concerned union members is always unlimited. The management staff, especially in case
of theft, it is direct termination, if the crime is proved.
10. GRIEVANCE PROCEDURE

Most of the grievances are settled in the department itself. The unions will nominate
representative in departments and forward the list to the management.
44

 The grievances reported will be sent to the department head in writing in prescribed
Grievance form.
 If there is no reply or if the reply is not satisfactory within 48 hours, then the
employee can submit a copy to the concerned functional manager.
 If there is no response within another 48 hours, then the complaint could be
forwarded to the Personnel Department.
 In case of lack of response even after 72 hours, the complaint shall be forwarded to
the President.
 After waiting for 2 more weeks the complaint could be forwarded to the State Labour
Department.
11. WAGES AND SALARY

The wages and salary is determined based on the attendance record provided by the time
office. The time office keeps the punching of the workmen. By the starting of each
month, a shift schedule is prepared and programmed. Any change in the shift has to be
reported to the time office. At the end of each month, the time office gives record of
leaves, attendance, over time, off days or holiday work and depending on this the wages
are computed.
The pay slip will contain all the details of allowances, deductions and total pay of
employees. The over time rate is twice in plant and for managerial staff it is one and a
half times. The wages and salary are given on or before 5 th of every month. Also Binani
Zinc’s time office is the Kerala’s first computerized time office.
12. PROVIDENT FUND

Binani Zinc Ltd is an exempted organization and looks after the provident fund
administration by itself. An account for provident fund is in the bank and after the
45

expenses the balance is invested as per the ruling of the Ministry of Labours. To be
eligible for provident fund benefits, one day’s work is enough. Also there is provision for
voluntary provident fund. But there is a limit on the amount that can be surrendered.
13. ESI SCHEME

Only very few employees at BZ are under the ESI scheme. But for contract workers, it is
made compulsory for ESI scheme on Life Insurance Scheme.
14. GRATUITY
Gratuity is a benefit that is given to the employees at the time of retirement. If a person
complete service for more than 5 years, he is eligible for this.
15. WELFARE ACTIVITIES

The welfare measures adopted by BZL can be classified into statutory and non- statutory
measures.
 Statutory measures includes canteen providing subsidized food, rest room with
various facilities, 24 hours working first aid unit, etc.
 Non-statutory measures includes uniform/foot wear, one umbrella per year,
recreational facilities, Founders day, Deepawali celebrations, etc.
46

4.1.1 SAFETY
Safety is the keyboard at Binani Zinc Ltd. The use of Personal Protective Equipment
(PPE) is compulsory for each and every employee. If an employee is found without PPE
a Red Card is issued. As the first step he is not given the prize on safety day. If he is
again spotted without PPE, there is a cut in his salary.
There is an OHS committee set up to occupational health, safety and house keeping
practices. The members are executive Vice President, Manager safety , three members
representing the three recognized unions, senior engineers (environment) and the chief
Managerial Officer. The committee carries out regular inspections and make necessary
recommendations.
In order to promote safety house keeping the Japanese 5S concept is practiced in all
departments at BZ
1. Seiri - Segregation, Sorting

2. Seiton - Arrangement
3. Seiro - Cleaning
4. Seiketsu - Standardization, maintenance, control
5. Shitruke - Training, Discipline
There is a safety management system to ensure safety and healthy environment.

Periodical Monitoring of dust, noise, illumination, etc is carried out. There is a safety
suggestion scheme in which employees can make suggestion and the best suggestion is
given award. There is a safety and house keeping notice board to display notices and
messages regarding it.
There is a safety mock drills carried out twice a year. Competition are held as a part of
Safety Day Celebrations(March 4th) , Fire Safety audit and electrical safety. Audit are
47

conducted by external agencies and their decisions are implemented. The company is
giving safety training on a regular basis and it has an Onside Emergency Plan detailing
the responsibilities of various functionaries in case of an accident.
4.1.2 SECURITY
The security function is concerned with the security of personnel as well as property. The
security looks into the arrivals and departure of employees, their punchings , control of
shift buses , allotment of out pass, visitors pass, etc. Punching is permitted within 30
minutes, permission is to be sought from the concerned department. If the punching
system fails the security personnel note the timing and hand it over to the time office.
The siren system is also included in security function. Normally sirens are given at the
beginning and end of the shift hours. During emergency wailing alarm is given. Other
security functions include checking of workmen of departure, attending incoming calls
and transferring them.
At most care is taken during transport of product and each vehicle for transport of Zinc,
Cadmium and H2SO4 is thoroughly checked for damage and leakage. The license of
driver, documents of the vehicle and the load carried is checked. The vehicle essentially
must contain a first aid box. The security office maintains files, registers and documents
carrying information about personnel, about material, pass challans, monthly report about
fire fighting equipments, interdepartmental sports and games etc. The security also
collects information in the area of industrial relation, employee welfare, etc that may
assist the management in taking decision.
48

4.1.3 OCCUPATIONAL HEALTH CENTER
Clean environment, safety practices and good health are the major ingredients of Binani
Zinc vision. To achieve good health of all its employees the company has set up an
occupational health center in the name of Ganashyam’s ‘BINANI HEALTH CENTER’ .
The Centre emphasizes on the preventive aspects and its main objective are protecting
workers, health, promoting physical, mental and social well being of workers and
minimizing the consequences of occupational hazards, accidents and diseases. The centre
has the most sophisticated instruments with facility for audio testing, vision testing, ESU,
checking of lungs and also a biochemistry and haematology lab. A doctor is available
from 8:30 am to 5:00 pm. The first aid units functions for 24 hours and for all 7 days in a
week. There is one ambulance to evacuate people in case of serious injuries.
The primary function of the center is providing total health cure to all its employees from
the time of recruitment. Each employees has to undergo thorough medical check up right
at the time of recruitments and from then he has to undergo annual medical clean up
every year. The center maintains a personal file for each employees free of cost. All the
facilities and services of the center are accessible to their families for a normal fees. The
community people can make use of center on Tuesdays and Wednesdays.
The center also organized health checkups, diabetics detection camp, eye camps, etc.
Training programs on first aid is given regularly to employees. The center also focuses on
health counseling, use of personal protective equipments, occupational hygiene, etc.
49

4.2 COMMERCIAL DEPARTMENT
VICE PRESIDENT (COMMERCIAL)
GENERAL MANAGER ASST.GENERAL MANAGER
(MARKETING) (MATERIALS)
DEPUTY MANAGER Sr. MANAGER Sr. MANAGER
(MARKETING) (MARKETING) (MATERIALS)
OFFICER PURCHASE STORES

(MARKETING)
Sr.OFFICER Sr.OFFICER
(PURCHASE) (STORES)
PURCHASE STAFF STORES STAFF
50

COMMERCIAL DEPARTMENT
MARKETING PURCHASE STORES
4.2.1 MARKETING DEPARTMENT
GENERAL MANAGER
(MARKETING)
DEPUTY MANAGER Sr. MANAGER
(MARKETING) (MARKETING)
OFFICER
(MARKETING)
51

FUNCTIONS OF MARKETING SECTION
 Finalization of Sales policy formulation

 Finalization of new/continuation of current selling agency agreements for zinc and
cadmium.
 Dispatch of zinc and cadmium.
 Dispatch of sulphuric acid.
 Interaction of customers.
 Transportation contract
SALES PROMOTION:
Promotion of the products does not take place through media or any other way.
Customers of the firm are huge companies. These prospective customers act as the sale
promoters of the company. These companies share their experience of using the products
of Binani zinc with other companies. There is only one competitor for the company .due
to these reasons no additional cost for sales promotion is to be incurred by the company.
SALES:
Sale of cadmium, zinc and sulphuric acid is done directly by the company. The sale is
done directly from the plant and also from the various depots situated in Mumbai,
Chennai etc. Sale of zinc and cadmium is determined directly on the basis of level of
production. Sale of sulphuric acid is fixed in advance and only a specific number of
customers can be supplied. Sale is also carried out through sales agents.
52

MARKETING PLAN
It is taken care of during the formulation of sales policy and long term contract booking
for whole financial year. Marketing budget forms the major financial resource planning
for each year, which is carried out at the beginning of the each financial year.
PRICING OF BINANI ZINC PRODUCTS
ZINC AND CADMIUM
 Price is based on import/local prices

 Fluctuations in the import prices.
 Prizes are set in line with HZL prices.
 Price of zinc concentrate.
SULPHURIC ACID
 Acid supply and demand

 Pricing depends on sterlite/sulphur prices
MARKET INFLUENCING FACTORS
 Level of stocks with London Metal exchange.

 Fluctuation in worldwide demand of zinc.
 Growth rate of zinc producing countries.
 Funds in zinc sector
53

4.2.2 PURCHASE DEPARTMENT
GENERAL MANAGER
(MATERIALS)
Sr. MANAGER
(MATERIALS)
Sr.OFFICER
(PURCHASE)
PURCHASE STAFF
WORKMEN
54

FUNCTIONS OF PURCHASE SECTION
 Procurement against purchase order

 Emergency collections
 Bills settlement
 Vendor development
 Vendor rating
 Contracts
PURCHASE PROCEDURE
i. PURCHASE REQUISITION
Procurement shall be effected against authorized /approved purchase order

through online integrated sysem. The PR is processed online .The PR initial entry is made
by the intending department through the system. The entered PR is to under go 1 st level
authorization by concerned manager and 2nd level authorization by concerned DGM and a
3rd level authorization by the concerned MC committee member. The PR are then
converted to intents in the stores and processed through the system by purchase
department.
ii. ENQUIRY
After the PR is converted to intents at stores, enquiry processed online in the

prescribed format, is issued to active vendors by purchase department. Where such lists
55

are not available in the vendor master, enquries are sent to vendors recommended by the
user department or newly developed vendors.
Enquiry form contains following information
 Material description
 Quantity
 General terms and conditions
 Statement on QMS/OHSAS/SA compliance of the vendor.
iii. COMPARATIVE STATEMENT/PROPOSAL
On receipt of quotation, comparative statement shall be prepared and sent to user

departments. Comparative statement is prepared through the system and normally
contains the following information
 Indent no. And date

 Enquiry no. And date
 Vendors name
 Materials description
 Price basis
 Delivery schedule
 Payment terms
 Total value for approval
iv. PURCHASE ORDER
56

 Purchase order shall be issued on evaluation of comparative statement and approval

of purchase by concerned personnel
 P.O shall be issued only after getting appropriate approvals and will be signed by the
DGM (materials).
 Average internal lead-time shall be 15 days for routine items.
 External lead time shall comprise of transit time and delivery lead time of the vendor
VENDOR EVALUATION
The following are considered in evaluating a vendor
 VRC
 Product catalogue /specification
 Technical suitability of the product
 Credentials of the vendor
 Capacity, turn over, previous orders executed
 Third party report
 General financial and performance evaluation.
VENDOR RATING
In Binani zinc vendor rating is applicable only for purchase budget items with a yearly
purchase value above 4 lakhs. And rating is done on a yearly basis.
Vendor rating is done for the following
 Checking consistency of the vendor

 Comparison of vendors
57

 Selection of appropriate vendors

 Good relationship with the vendor
VENDOR RATING PARAMETERS
 RIGHT TIME DELIVERY

 CONFORMANCE OF PRODUCT SPECIFICATION
 QUANTITY
 QUALITY MANGEMENT SYSTEM
58

4.2.3 STORES DEPARTMENT
VICE PRESIDENT
(COMMERCIAL)
GENERAL MANAGER
(MATERIALS)
Sr. MANAGER
(MATERIALS)
Sr.OFFICER
(STORES)
STORES STAFF
WORKMEN
59

The stores department in the Binani zinc is guided by the principle “Must have optimum
inventory of what we need”. This means that the company should have sufficient
inventory to meet the needs whenever it arises. The stores department mainly deals with
consumables and spares. The raw materials and finished goods are dealt with separately
at the production department. The raw materials are imported and minimum stock is
maintained. And in case of finished gods one day’s production is kept as the stock.
INVENTORY MANAGEMENT SYSTEM
To eliminate rare and non-moving items binani zinc has adopted a systematic approach
for managing their inventory.
STAGE I
Stage I deals with the classification of inventory their categorization, policy making for
each category etc. the following are steps involved.
 Identify appropriate parameters for classification like SDE, XYZ, Insurance

spares, general purpose spares etc
 Develop decision rules for each category
 Meaningful analysis to check whether company is holding what it need
 Disposal of obsolete and surplus items
STAGE II
The second stage deals with the creation of central information pool for managing
inventory. The steps involved are:
60

 Data acquisition to create central information pool can easily be done in a

networked environment
 Dynamic cataloguing ensures traceability of all design or specification charges.
STAGE III
This stage depicts the parties for replacement of inventory, their purchase etc.
 Policy for initial provisioning .

 Regulation of future purchases.
 Emergency purchase to be avoided totally.
FUNCTIONS OF STORES SECTION
1. RECEIPT AND INSPECTION OF ITEMS

The goods are received at the main gate .the security staff at the main gate physically
verify the quantity by comparing it with P.O. after receiving the goods and after verifying
the quantity and quality of material an inspection document is prepared at the stores and
sent to concerned user department. The user department conducts inspection and results
will be passed on to stores. This information will be incorporated in final document
namely G.R generated at the stores. GR is sent to the purchase department for payment.
2. STORAGE AND PRESERVATION

Materials are mainly stored in racks and bins. Each rack is coded in order to identify the
items. For instance the equipment required by the roaster plant are kept in one rack and
rack is named R. items are stored in each shelf of that rack. Each shelf is numbered as
61

1,2,3 etc, the storekeeper identifies items by the rack symbol. Items of common use are
kept together. Chemicals are stored in separate room which requires particular range of
temperature. Instruments are kept in separate dust proof room.
3. ISSUE OF MATERIALS
After the introduction of ERP system at Binani recording and documentation of materials
are done online. Once the user department recognizes the need for materials it places an
authorized requisition online. The storekeeper identifies the material at store after
comparing the material code in the system with that in the rack. The material is issued to
the user department and necessary updations will automatically dones by the system.
FIFO method is followed in the issue of materials.
4. STOCK TAKING
Binani zinc follows an up to date stock taking system. stock taking will starts at 3:00 pm
every day. The staff in the stores department verifies the stock and reports it to the officer
in charge. In case the quantity of stock in stock does not tally with that in the records,
causes for the same will be found out and necessary steps for rectification will be taken
after reporting to the higher authorities.
62

4.3 RESEARCH AND DEVELOPMENT DEPARTMENT
Sr. VICE PRESIDENT
(Operation and R&D)
SENIOR MANAGER ADVISOR
MANAGER
OFFICER OFFICER ENGINEERS
R&D ENVIRONMENT R&D
All major research is done at the R&D. when concentrate reaches the company R&D
department takes samples and check the content of zinc in raw materials. R&D
department has all the mini type of automatic advanced machinery. They do the process
initially and identify the purity of the zinc.
R&D has three sections. They are:
63

 Development section
 Assay section
 Environmental section
DEVELOPMENT SECTION
The activities of the development section are as follows:
 Zinc concentrate evaluation.

 Voltage measurement and anode correction in cell house.
 Acid to concentrate measurement.
 Taking up of process/product development studies.
 Preparation of control charts for critical operating parameters and analytical values.
ASSAY SECTION
The activities of the assay section are as follows:
 Bulk chemical sampling and analysis.

 Analysis of samples at different stages of process.
 Analysis of products namely zinc ingots, cadmium, sulphuric acid.
 Analysis of samples for recovery calculation and extraction efficiency calculation.
 Preparation and issue of various reagents required by control laboratories in plants .
64

ENVIRONMENTAL SECTION
The activities of the environmental section are:
 Monitoring of effluents emissions.

 Sending statutory reports.
 Monitoring of hazardous waste quantity, storage and disposal.
 Monitoring of various activities in the plant for the control of pollution.
 Maintenance and improvement of environmental management system.
Benefits of R&D department
 Treatment of zinc bearing secondary materials had improved capacity utilization.

 Value addition and waste minimization.
 Improvement in anode life.
 Improvement in process efficiency.
 Over all extraction of zinc has been considerably improved and purity of zinc ingots
is considerably maintained.
65

4.4 INFORMATION AND MANAGEMENT SYSTEMS DEPARTMENT
GENERAL MANAGER
(MANAGEMENT SYSTEMS)
SENIOR MANAGER
(INFORMATION AND SYSTEMS)
DEPUTY MANAGER DEPUTY MANAGER DEPUTY MANAGER
(INFORMATION (INFORMATION (INFORMATION
SYSTEMS) SYSTEMS) SYSTEMS)
This is a service department in the company. It works on the oracle platform-ORACLE

2000. Binani zinc has a ERP SYSTEM with 135 PCs are connected to main server-IBM.
The operating system used in the server is WINDOWS NT, the other systems are
working WINDOWS VISTA, XP & ME. The department was formed in 1982 with a 5
PC's and the E R P System was established in the year 2001 and the system is upgraded
every 5 years.
66

The ERP system operates at Binani Zinc Limited does not use all the features of standard
ERP systems. The company uses an integrated online system called CKN, all the
functions and internal communications in the company are carried through this system.
The company is following a punch card system and employees have to punch their cards
while entering into the company and going out of the company. Managerial staff has to
mark their attendance by login into the system. The leave application is also processed
through online system. Various operations of the stores department like preparing
purchase requisition, purchase order, inspection note etc are done with the ERP system
FUNCTIONS OF SYSTEMS DEPARTMENT
SENIOR MANAGER
 Planning
 Budget preparation
 Procurement of hardware and software whenever necessary
 Interaction with vendors
 License administration
 Maintenance of data base security
 Server room safety and security
 Study and analysis of latest development in IT and other related fields
 Ensure timely completion of routine jobs
DEPUTY MANAGER 1
 Maintenance of internet server and back up

 Information support for purchase stores and marketing
 Providing assistance in their day to day work
67

 Preparing MIS reports

 Development and modification of software
 Imparting training on Lotus notes, email and internet to users
 Hardware maintenance and support including network, antivirus, etc
 Network management and trouble shooting
DEPUTY MANAGER 2
 Information support for HRD, OHC,Production, Engineering, etc

 Back up of oracle data base
 Providing assistance in their day to day work
 Maintenance of asset register of computers and other accessories
 ISO documentation and manage leave authorisation application
 Development of new requirements for production and engineering
 Imparting training on Basic Computers/ Windows/Office/IOS to users.
68

4.5 FINANCE DEPARTMENT
VICE PRESIDENT ( FINANCE)
Sr. MANAGER (FINANCE)
DEPUTY MANGER DEPUTY MANGER
OFFICER OFFICER
NON-SUPERVISORY OFFICER
CASHIER
Finance Department covers all the financial functions of the company. The purchase of
raw materials and its valuation, preparing bills for each purchase, bill preparation of all
the sales, statutory and internal auditing, etc is done by finance department. The crew of
this department is 9.
69

The company is registered in two sites. If any changes occur in finance and bills
preparation according to government rules, then they will mail it to the finance
department and to the company. Each department has to prepare budget separately and
send it to the Board of Directors and the department can perform only those things which
area approved by them. The company has an interlinked system. So each department is
connected and therefore the verification of bills and stores are very easy. Finally, the
main important duty of finance department is to prepare balance sheet and other financial
statements or the company.
FUNCTIONS
 Purchase bill accounting: All the payments related to purchase are dealt here. It
makes use of computerized cheque leafs issued from the bank to make payments
to the suppliers, agents etc.
 Sales accounting: Agents accounts related to stationary, printing, transportation
etc are maintained here.
 Stores accounting: It deals with the reception, issue and storage of materials.
 Raw material accounting: The raw material imported from various places comes
by ship to the port. The material is unloaded using barges to a space that is rented
by the company for temporary storage of the material. The charges for the whole
activity include the cost of the material which is based on LME price, despatch
money, customs duty, handling charges at the dock plus the rent to the port.
 HRD Package: The main purpose is to take care of the salary payment to the
employees. It makes use of a payroll package in association with the HRD.
 Corporate office setup: It takes care of the cash and bank operations and the
statutory remittances like the sales tax, income tax, ESI, PF etc.
70

 Auditing: Auditing includes Annual Financial audit, Income Tax audit, Cost
audit, Sales Tax audit. Each serves different purposes. It is done from
professionals outside the company but monitored by the finance department.
Internal audit is done on contract basis. Finance department helps them in giving
the necessary information and data.
 Budgeting: Budget allocation starts with the marketing department. The
marketing department estimates the sales for a particular year. Based on that the
budgets of the other departments are allocated as of how much raw material is to
be purchased, how much should be spent on maintenance research etc. About
60% of the total cost is allotted to raw material, 20% to electricity and 20% to
labour and administration.
71

4.6 PROJECTS AND TECHNICAL SERVICES DEPARTMENT
VICE PRESIDENT(ENGINEERING & PROJECTS)
Dy. GENERAL MANAGER( PROJECTS)
Sr. MANAGER/MANAGER/Dy. MANAGER
SENIOR ENGINEER/ENGINEERS
ASSISTANTS
Projects and technical Services Department is the department which leads to the
technical development of the company. Introduction and execution of long term projects
come under this department. Major repairs of the plants and other departments, green
field project and expansion of the company are dealt by this department. The new project
of the BZL is Waelz Plant, which will produce zinc from zinc concentrate by
vapourising.
72

FUTURE PROJECTS
 Sewage Treatment Plant

 ETP underflow filteration systems
 Heat exchangers for acid wash section
 New technology to produce zinc dust of superior quality
 Modification in the neutral leach stream line
4.7 PRODUCTION DEPARTMENT
There are 4 mangers in the production department. Zinc is produced by hydro

metallurgical route, which includes the following plants.
 Roaster and acid plant

 Leaching and purification
 Electrolytic plant
 Melting plant
73

PROCESS BLOCK DIAGRAM
74

4.7.1 ROASTER PLANT
MANAGER
SHIFT IN CHARGE
CHIEF OPERATOR
OPERATOR
BOILER OPERATOR
WORKMEN
Zinc is present as zinc sulphate in zinc concentrate. Zinc concentrate is roasted in a Lurgi
fluidized bed roaster in the presence of air .In roaster zinc sulphide is converted to calcine
and sulphur di-oxide. The roasting process is exothermic. The roaster reaction takes place
at 900-950 degree.
75

Calcine and hot laden gases are the roaster products. Calcine comes out as furnace
overflow and it is cooled in a roto cooler, powdered in a ball mill ball mill and
pneumatically conveyed to storage silos. The hot dust laden gas passes through a series of
equipments for gas cleaning. The gas cleaning equipments are:
 Waste heat boiler

 Cyclone
 Hot gas precipitator
 Star cooler
 Wet gas precipitator
The coal, cleaned gas goes to acid plant where sulphur di-oxide is converted to sulpur tri-
oxide. And it is absorbed in absorbing acid to produce sulphuric acid.
76

4.7.2 LEACHING PLANT
MANAGER
SHIFT IN CHARGE
CHIEF OPERATOR
SENIOR OPERATOR
JUNIOR OPERATORS
WORKMEN
The aim of leaching is to dissolve maximum zinc and valuable elements such as cadmium
from calcine obtained from roaster. The zinc in calcine is under easily soluble oxide
form. Leaching is carried at neutral condition ie return sulphuic acid coming from
ceellhouse and calcine are mixed in such a way that system never goes to acidic
condition. During this process of neutral leaching hydrolysable impurities get hydrolyzed
and removed. Iron present as ferrous gets oxidized with air. After leaching, the slurry
77

goes to a thickener where sulphuric acid solution is separated from the residue. Impurities
like insoluble sulphates and hydrolyzed impurities are removed through under flow of
thickener and over flow is sulphuric acid solution with soluble impurities. The impure
sulphuric acid solution goes to purification section.
PURIFICATION
In purification elements like copper, cadmium, cobalt, nickel etc, which are more electro
positive than zinc, are displaced from the solution by the addition of zinc dust. There are
two stages of purification.
Cold purification: This is carried at 55-60 degree by using zinc dust by a process called
cold purification cake leach. Cadmium is replaced at this stage.
Hot purification: Filtrate after cold purification pass through a heat exchanger to heat up
to 75 degree in hot purification. Fine zinc dust is added to sponge out nickel and cobalt.
Hot purification cake is leached at controlled activity to recover excess zinc dust present
and it is filtered. The over flow of clarifier, pure sulphuric acid solution is sent to cell
house for electrolysis.
78

4.7.3 ELECTROLYTIC PLANT
Dy. GENERAL
MANAGER
CHIEF OPERATOR
OPERATOR
GENERAL WORKMEN
WORKMEN(TRAINEES)
The electrolytic plant involves the cell house. Here the purified zinc is separated as sheets
by the electrolysis process. The faraday’s Laws of electrolysis is being followed in this
plant. The main process of electrolysis is to produce special high grade zinc from the zinc
sulphate solution received from the purification section.
79

Electrolyte : Pure Zinc Sulphate
Anode : Lead
Cathode : Aluminium
There are 32 cells in cell house. Each cell contains 84 cathodes and 85 anodes. Cell feed
is cooled in a cooling tower and sent to cells where DC current is applied from a pair of
silicon rectifiers. Individual cell voltage is about 3.3V and current density is 450 A/m2.
Zinc deposited cathodes are transported to shipping machine using cell crane. Deposits
on each side of the cathode are stripped of using automatic stripping machine. The
deposition time of the zinc is about 40 hours.
At the end the zinc will be deposited at the cathode and the manganese dioxide will be
deposited at the anode. The cell house consumes about 4 lakh units of electricity per day.
This amount constitutes of about three fourth of total power consumption of the
company. Also certain reagents are added into the electrolyte in order to arrest the acid
fumes formed out of the reaction
80

4.7.4 MELTING PLANT
MANAGER
SHIFT IN CHARGE
CHIEF OPERATOR
OPERATOR
FORK LIFT OPERATOR
GENERAL WORKMEN
GENERAL WORKMEN(TRAINEES)
Melting Plant is the final step in the extraction process. And the final product is divided
into 99.99% high grade zinc and 99.995% special high grade zinc ingots are obtained.
Cathode zinc is melted in an induction furnace of 30 MT holding capacity and 8 MT/Hr
melting capacity. Molten zinc is pumped from furnace to cast moulds where
approximately 25Kg zinc slabs are casted and stacked with the help of stacking machine.
81

4.8 ENGINEERING DEPARTMENT
The engineering department consists of three departments
4.8.1 ELECTRICAL DEPARTMENT
ADVISOR
SENIOR MANAGER
DEPUTY MANAGER
ENGINEERS/OFFICERS
CHARGEMEN
ELECTRICIAN
GENERAL WORKMEN/TRAINEES
82

The main function of electrical department is the overall controlling and maintenance of
the electrical problem of the company. Their main objective is to manage electricity
energy effectively by creating energy forecasts, evaluating it with the present resources
capabilities and formulating strategies, safeguard the investment and also keeping
productive assets in working condition for effective utilization. As the company is very
crucial to have continuous flow of current, there are three sources of electrical energy:
 KSEB Edayar: There is a 110 KV substation at Edayar. There are 2 feeders there.
The 110 KV current received at the company is step down to different voltages as
per requirement.
 Captive Power Plant: There are two diesel generators available each producing
5MW and 5.3MW respectively. This plant uses furnace oil for its functioning.
 Turbo generator: The turbo generator available in the company produces .5MW of
electricity. The turbo generator uses the steam produced at various stages during
the processes.
Objectives
 To manage electrical energy effectively by creating energy forecasts.

 To maximize the utilization of assets.
 To maintain the safety devices for protecting men and material.
 To analyze costs, performance and technical factors.
83

Factors Affecting Decisions :
 Imposed power cuts by KSEB

 Government and Board orders
 Electricity tariffs and concessions
Maintenance functions carried out:
 Running maintenance
 Annual maintenance
 Breakdown maintenance
84

4.8.2 INSTRUMENTATION DEPARTMENT
GENERAL MANAGER
DEPUTY GENERAL MANAGER
MANAGERS
DEPUTY MANAGER
OFFICER
INSTRUMENT MECHANIC
GENERAL WORKMEN
PROBATIONARY INSTRUMENT MECHANIC
GENERAL WORKMEN/TRAINEES
85

Instrumentation department are concerned with the repairs and maintenance of all
instruments and accessories in the company. Their main objective includes keeping the
productive asset in working condition for effective utilization of assets and maintain
safety devices and also analyze cost, performance and technical factors. Any false
information in these items will cause high expenditure. So the workers must be careful.
The crew of this department is 14.
4.8.3 MECHANICAL/MAINTENANCE DEPARTMENT
GENERAL MANAGER
SENIOR MANAGERS
MANAGERS
Dy. MANAGERS
MECHANICS (GRADE 1, 2, 3)
86

PROBATIONARY MECHANICS
GENERAL WORKMEN
GENERAL WORKMEN TRAINESS
The total crew of this department is 39. The maintenance department is highly critical
in ensuring the smooth and continuous operations of the production process. It plays
a supportive role to the production department and in turn is supported by the
purchase and stores department.
87

CHAPTER 5
88

5.1 FINANCIAL PERFORMANCE OF THE COMPANY
From the above figures it is clear that the company profit has come down considerably in
the financial year 2008-2009. This is owing to the global economic recession and the fall
in price of the commodity(zinc) worldwide. The company is working out effective
methods to reduce the cost of production and breeze through this hard hit period. The
company starts to make profit again from last financial year 2009-2010, through
increased sales.
89

5.2ANNUAL REPORTS
90

91

5.3 FUTURE PLANS
1. The company intends to acquire mines hence reducing the cost of the raw material.
The company now depends totally on imported zinc concentrate. The Company is going
forward with its plans with regard to off-take agreements and financial participation in
mines located in Australia.
2. Electricity can be considered as one of the raw materials for the company. The
company is the highest bill payer to the Kerala State Electricity Boeard ( a whooping 4.5
Crore Rupees per month). The company hence intends to build a power plant to meet its
needs and reduce the production cost.
3. The company intends to explore further into the domestic market by increasing the
production. For this plant capacity needs to be increased. (At present the plant capacity is
38000 MT per annum ).
4. The Company hopes to increase its presence in the die-casting alloy segment and plans
to bring other value added products into the market.
92

5.4 PORTERS FIVE FORCE ANALYSIS
From the analysis when can deduce:
1. The threat of new entry is very low

2. Competitive rivalry is high; if imports go up considerably , it may also
be a tough competitor
3. Buyer power is neutral
4. There is no major threat of substitution
5. Supplier Power is very low ; as there are a number of vendors
93

5.5 SWOT ANALYSIS
The SWOT analysis is a management tool which gives us an idea about the strength,
weakness, threat and oppurtunities of a company.
STRENGTHS
As BZL is the only one Zinc producing company in kerala. Its position is so high in the
business history of Kerala.
 It is the first Indian company having four international certifications i.e;

ISO 9000
ISO 14001
SA 8000
OHSAS 18000 and follows 5S housekeeping practice.
 The company is committed to environment protection and the Pollution control

board has rewarded its pollution control efforts. It got excellence award for its
pollution control efforts in 2009 from state pollution control board, among the
large scale industries.
 It is the first Indian company to produce special high grade Zinc. BZL has proved
its efficiency in its productivity by acquiring 38000MT zinc per annum during the
year only with 355 employees. The company is blessed by hard working and
efficient employees. Here the labour turnover is very low.
94

 The company has a very cordial relationship with the employees union and there
was no strike after 1996.
WEAKNESS
 The main weakness of BZL is the absence of mines.
 Another weakness of BZL is that its maximum production capacity is only

38000MT. It is nothing when compared to its competitor HZL
 High dependence on imported zinc concentrate. Due to unavailability of zinc

concentrate company was forced to close down for 131 days in 2006.
 Under utilization of capacity. Only 59 % and 88 % of total capacity was utilized

the past years.
OPPURTUNITIES
 The demand projections for the coming years indicate a higher potential growth
pattern for zinc consumption. Demand for zinc in India is expected to grow at 10-
12% in the coming years.
 The demand for recycled zinc is increasing and the company can explore the
secondary zinc market.
 Company is going for vertical integration. The company is planning to set up

three captive mines project. They are Basantgarh mines in Rajasthan, RBG
Minerals Industries Limited, Ambaji mines.
95

THREATS
The main threats or risks of BZL occurs from the external factors. The major external
factor that can have a significance bearing on the company’s performance are
 Fluctuation in zinc prices at London Market Exchange(LME)

 Enhanced metal supply in market
 Low treatment charges
 Competition from secondary zinc manufactures
 Import duty reduction of zinc metal.
 Shortage in the availability of raw material especially zinc concentrate
96

5.6 PROBLEMS FACED BY THE COMPANY
 Reduction in Import Duty -The future expansion plans of Binani Zinc, is likely to be
affected by the reduction in import duty on non-ferrous metals such as zinc in the recent
Union Budget. The import duty had been brought down from 35 per cent to 25 per cent,
and at the same time, no relief had been given on the import duties for the basic raw
material such as zinc concentrate.
 Power Tarrif Hikes - The steep electricity tariff revision by the Kerala Government is
making the operations of Binani Zinc increasing unviable.
 Shortage of Raw Material: The shortage of raw material is a major problem faced by
the company. The company had to be shut down for more than hundred days because of
this problem and it resulted in poor performance of the company.
5.7 SUGGESTIONS
The following are the suggestions to make the Binani Zinc Ltd perform in better ways:
1) As the BZL has only one competitor in India, it has to take certain steps which will
help to catch maximum market share.
2) The BZL has to draw a comprehensive plan to investigate the perceived threats.
3) As the prices are expected to remain volatile, the BZL must be more conscious in
undertaking hedging activities as a protection against wide fluctuation in zinc prices.
4)Always make sure that the required concentrate is available .Also there should not be
any wastage of money due to non-productive inventory.
97

CONCLUSION
Binani Zinc Limited is a company which considers quality of its products and services,
environmental control, safety and health of all its employees and social accountability as
the prime management responsibility and strive for continual improvement. Although
they have a formal organization hierarchy, the reporting structure followed is that of a
very informal (which shows traits of matrix organization) type. At present the
competition in the market is low, but the company should adhere to the plans to expand
its reach in the market.
98

BI BLIOGRAPHY
1. Annual report of Binani Zinc Limited for the year ending 31 st march 2010
2. Company personnel manual
3. http://binaniindustries.com/
4. http://www.crnindia.com/commodity/zinc.html
99

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REPORT ON ORGANIZATIONAL STUDY

I, Abeymon Francis, Student of Berchmans Institute of Management Studies,

Place: Changanassery Abeymon Francis

Berchmans Institute of Management Studies MBA

I am greatly thankful to Rev. Fr. Tomy Padinjareveettil, Director Berchmans Institute

I express my sincere gratitude to Dr. Mathew Joseph, Head of the department of

Berchmans Institute of Management Studies MBA

1.1 INTRODUCTION .................................................................................................................................................7

1.2 OBJECTIVES OF STUDY................................................................................................................................8

1.3 REASONS FOR SELECTING BINANI ZINC LIMITED FOR ORGANIZATION

1.4 SCOPE OF THE STUDY................................................................................................................................10

2.1 INDUSTRY PROFILE .....................................................................................................................................12

2.2 ZINC INDUSTRY IN INDIA........................................................................................................................16

2.3 INTERNATIONAL SCENARIO .................................................................................................................17

3.1 COMPANY PROFILE .....................................................................................................................................20

3.2 PRODUCT PROFILE .......................................................................................................................................27

3.3 MAJOR CUSTOMERS OF BINANI ZINC LIMITED ...............................................................................31

3.4 RAW MATERIALS & WASTES .....................................................................................................................32

3.5 MISSION ................................................................................................................................................................33

3.6 COMPANY POLICY & PROCEDURES ................................................................................................34

3.7 COMPANY STRATEGY .....................................................................................................................................35

3.8 ORGANISATIONAL STRUCTURE.........................................................................................................37

4.0 VARIOUS DEPARTMENTS & THEIR FUNCTIONS .............................................................................39

Berchmans Institute of Management Studies MBA

4.1 HUMAN RESOURCE DEVELOPMENT & OCCUPATIONAL HEALTH SAFETY

4.1.1 SAFETY ..........................................................................................................................................................47

4.1.2 SECURITY .....................................................................................................................................................48

4.1.3 OCCUPATIONAL HEALTH CENTER ................................................................................................49

4.2 COMMERCIAL DEPARTMENT ...............................................................................................................50

4.2.1 MARKETING DEPARTMENT ..........................................................................................................51

4.2.2 PURCHASE DEPARTMENT ..............................................................................................................54

4.2.3 STORES DEPARTMENT .....................................................................................................................59

4.3 RESEARCH AND DEVELOPMENT DEPARTMENT....................................................................63

4.4 INFORMATION AND MANAGEMENT SYSTEMS DEPARTMENT ...................................66

4.5 FINANCE DEPARTMENT ...........................................................................................................................69

4.6 PROJECTS AND TECHNICAL SERVICES DEPARTMENT .....................................................72

4.7 PRODUCTION DEPARTMENT ................................................................................................................73

PROCESS BLOCK DIAGRAM ............................................................................................................................74

4.7.1 ROASTER PLANT ...................................................................................................................................75

4.7.2 LEACHING PLANT ................................................................................................................................77

4.7.3 ELECTROLYTIC PLANT ....................................................................................................................79

4.7.4 MELTING PLANT ...................................................................................................................................81

4.8 ENGINEERING DEPARTMENT ...............................................................................................................82

4.8.1 ELECTRICAL DEPARTMENT .........................................................................................................82

4.8.2 INSTRUMENTATION DEPARTMENT ........................................................................................85

4.8.3 MECHANICAL/MAINTENANCE DEPARTMENT................................................................86

Berchmans Institute of Management Studies MBA

5.1 FINANCIAL PERFORMANCE OF THE COMPANY .....................................................................89

5.2ANNUAL REPORTS .........................................................................................................................................90

5.3 FUTURE PLANS................................................................................................................................................92

5.4 PORTERS FIVE FORCE ANALYSIS.............................................................................................................93

5.5 SWOT ANALYSIS ............................................................................................................................................94

5.6 PROBLEMS FACED BY THE COMPANY ..................................................................................................97

5.7 SUGGESTIONS ..................................................................................................................................................97

Berchmans Institute of Management Studies MBA

Berchmans Institute of Management Studies MBA

Berchmans Institute of Management Studies MBA

Zinc - 38,000 MTPA

Sulphuric Acid - 51,000 MTPA

1.2 OBJECT IVES OF STUDY

Berchmans Institute of Management Studies MBA

1.3 REASONS FOR SELECTING BINANI ZINC L IMITED FOR

Berchmans Institute of Management Studies MBA