Organization Study of Indian Rare Earth Limited

CHAPTER I
Marthoma College of Management and Technology 1

Indian Rare Earth Limited, Chavara
1.1. INTRODUCTION
Each and every organization has its own importance in the economic wealth of the nation.
Different organization meets different needs of people by offering different products and
services. Due to globalization the world has changed into a global village. In this fast and
changing scenario, it is imperative for every entrepreneur to have a vivid understanding of
the functional applications of the new age business. As a part of the academic curriculum
each student has to undertake an organization study to get practical exposure .This study is
conducted on Indian Rare Earth Ltd. Chavara..
IREL is located at 10 Km away north of Kerala and 85 Km from Trivandrum, capital of

Kerala and 135 Km by road from Cochin perhaps blessed with the mineral sand deposit of
the country. The plant operates on a mining area containing as high as 40% heavy minerals
and extending over a length of 22 Km in the belt of Neendakara and Kayamkulam.
The IREL Chavara is one of the oldest public sector undertaking under the Department of
Atomic Energy (DAE). It’s an ISO 9001:2000, ISO 14001:1999, and OHSAS: 18000
certified companies. The plant operates on a mining area containing as high as 40% heavy
mineral. Thus IREL, Chavara is one of the oldest and the leading public sector undertaking
that satisfies the requirements of the developed countries like USA, U.K., Germany,
Australia and Japan with its highest quality.
India has the largest resource base of 278 million tons of Ilmenite. This is the second largest
and the least exploited mineral deposit in the world. However, only 15% of there is minable.
Resource base in India for other minerals in million tons are 18 for Rutile, 107 for Garnet, 21
for Zircon, 8 for Monazite and 130 for Sillmanite. Presently there are a number of
organizations both private & public which are engaged in the mining and the separation of
the beach sand minerals.
The IREL, Chavara has a significant place in the industrial chart of Kerala. The Chavara
deposit contains Ilmenite, Rutile, Leucoxene, Sillmanite, Zircon, Monazite and Zirflor. These
products have both domestic and international market. Since the cost of production is low in
Kerala, products of IREL have captured the market in the midst of acute competition.
This study provide an overview of the organization and its structure and function carried out
by different departments like Production, Marketing, Human Resource, Sales, Finance. This
study is conducted primarily to obtain some practical exposure to organization.

1.2. NEED FOR THE STUDY

The study is intended mainly to understand the organisational structure of IREL, Chavara. Its
departmental functions as well as its operations in the mining industry by implementing the
managerial practices.
Beyond the theoretical knowledge of study it’s quite helpful to get the habitude with the
working of the organization and also its various departments.
1.3. OBJECTIVES OF STUDY
PRIMARY OBJECTIVE
1. To study the functioning of the organization and its various departments.
SECONDARY OBJECTIVE
1. To understand the decision making process involved in the various levels of organization.
2. To study the mobilization and the allocation of resources of Indian Rare Earth limited,
Chavara.
3. To study how Indian Rare Earth limited co-ordinates its activities.
4. To understand the strengths and weaknesses of the organization.
1.4. RESEARCH METHODOLOGY
Methodology refers mainly to the various methods used by the researchers for the data
collection. Methodology is increased with selecting techniques for collecting data and the
analysis of it.
The organization study is done mainly on the basis of both primary and secondary data. It’s
descriptive as well as analytical in nature.
PRIMARY DATA:-
Primary data is mainly original in character. The primary data for this study was mainly
obtained through the interviews with the officials as well as the workers in the various
departments of IREL. Observations and visits were done to the respective locations.

SECONDARY DATA:-
Secondary data are those which have been already collected in the same context. Secondary
data were collected from various sources such as:
 Audited annual reports

 departmental procedures
 journals
 circulars
 company website
 apex manual
 previous research studies
 various media and
 Other records maintained in the company.
1.5. LIMITATIONS OF THE STUDY
1) As the officials were engaged in their routine work, it was rather difficult to spare their
time for the detailed description.
2) There may be errors due to the bias of the respondent.
3) Time is the major limitation in the course of study.
4) Because of the strategic importance of the company, management kept certain matters
regarding the latest facts and figures strictly confidential.
5) The study is limited to my experience and knowledge
6) Secrecy of the organization prevents them from giving some of the details regarding the
firm.

CHAPTER II

2.1. INDUSTRY PROFILE
2.1.1. HISTORY
The term “Rare Earths” denotes the group of 17 chemically similar metallic elements. It
includes scandium, yttrium & lanthanides. The group of rare earth has greatly influenced our
day-to-day life with numerous applications namely in the areas of metallurgy, magnets,
ceramics, electronics, chemicals, optical, medical and nuclear energy.
Rare Earth Elements or Rare Earth Metals are a collection of 17 elements namely scandium,
yttrium and lanthanides (15 elements in the periodic table with atomic numbers 57 to 71
namely: lanthanum (La), cerium (Ce), praseodymium (Pr), neodymium (Nd), promethium
(Pm), samarium (Sm), europium (Eu), gadolinium (Gd), terbium (Tb), dysprosium (Dy),
holmium (Ho), erbium (Er), thulium (Tm), ytterbium (Yb) and lutetium (Lu)). Rare earths
are not rare in the sense of their abundance, but have earned this descriptive because they are
rarely concentrated enough for an easy recovery from their ores. These rare earth elements
with their atomic number from 57-71; have their primary source from the greenish-yellow
colored minerals sand which is monazite. It’s availability in nature is confined to certain
beaches & rocks found in certain countries.
In India, monazite is the principal source of rare earths, which is a prescribed substance as
per the notification under the Atomic Energy Act, 1962. Indian Rare Earths Limited (IREL)
has been the sole producer of Rare Earth compounds in the country. The recovery of Rare
Earth Elements (REE) from Monazite has been restricted due to its thorium and uranium
content. There is a need for concerted efforts both by GSI and AMD to explore other primary
sources of Rare Earth Elements. In the face of competition from China and due to lack of
domestic demand for indigenous materials, IREL had stopped its production. Given the
concerns over China’ s flexing of its muscle on the international stage by restricting Rare
Earths exports, a wave of Mining projects are revived worldwide to tap sizeable deposits of
Rare Earths. IREL is also planning to restart production of REE. Keeping this in view and
increasing demand of these metals for high tech applications, Ministry of Mines has stressed
the need to incentivize exploration & process R&D for creating indigenous production
capacities. To achieve this, a high level Steering Committee has been constituted to look into
the current availability of Rare Earths and to suggest short, medium and long term strategies
for exploration, production and processing, to ensure long term availability of the raw
material.
The beach sand contains the mineral monazite and its found mixed with the other minerals
too. These minerals are commercially known as “beach sand minerals/heavy minerals”. The
origin of beach sand is mainly from rocks which are rich in heavy minerals. This sand
particle reaches sea through the river. The sea level doesn’t remain as consistent. It regarded
that the sea level at present is now really 100m above what we had seen 20,000 years
ago.The white sand seen at the beach area contains the main constituent as quartz. This is
lighter than black sand. As a result of the movement of the sea, this sand will erode away and
black sand gets deposited. In the year 1789, a French scientist William George stated that this
black sand contained some important metal. But he failed to discover which metal it was.
After several years in the year 1875, the Hungarian Scientist Martin Heen found the same
metal content in the routine minerals. He renamed that metal content as “Titanium” after the
word “Titan” of the Greek mythology. Technology developed over the years has made the
beach sand minerals to be utilized in a variety of industrial and domestic applications. The
black sand thus deposited 100’s of year ago is mined & processed.
For the mining and processing of the beach sand to explore these minerals; mining industry,
which is one of the largest industries in the world is mainly concerned with the direct tapping
and the utilization of the natural resources which are mostly perishable. A global increase in
the mining capacity is currently underway with the numerous new projects all around the
world.
Presently, there are a few private organizations engaged in the mining and in the mineral
separation of beach sand minerals. The Indian players at present are “Trans World Garnet
Private Limited”, “V.V. Minerals,” “Earth Minerals Resource Private Limited, Tuticorin.”
1. The key success factors for the beach sand mineral industry are:-
2. To increase the Ilmenite capacity to reach the economic scale of production.Value
addition project in minerals and the rare Earth compounds.
3. Initiate the action to develop the new mining area.
4. Foreword integrates through stake in the world leaders in the pigment industries like
Tinfoss, Dupont or setting up a pigment plant.
5. Explore other mining options in the neighboring countries.

2.1.2. WORLD SCENARIO
There is large amount of reserves of rare earths minerals in the world. China holds the
leading position among producers of the rare earths elements or lanthanide elements. Rare
earths are also produced in India, Russia, Kazakhstan, Kyrgyzstan, Thailand, Malaysia,
Russian Federation, Brazil, Canada, Vietnam, South Africa, Indonesia, Sri Lanka, Mongolia,
North Korea, Saudi Arabia, Turkey, Norway, Greece, Nigeria, Kenya, Tanzania, Burundi,
Madagascar, Mozambique and Egypt. Most recently, it was discovered that Afghanistan may
have large deposits of rare earth metals, estimated to be worth US$89 billion. The rare earth
deposits are on the south bank of the Helmand River in southern Afghanistan. Given the
concerns over China’ s flexing of its muscle on the international stage by restricting Rare
Earth exports, a wave of Mining projects are reviewed worldwide to tap sizable deposits of
Rare Earth. Lyna Corporation’s new mining operation in Australia and Molycorop’s plan to
restart Mothballed Mountain Pass Mines is a step in this direction. It has also encouraged
further exploration and spurring more recycling of Rare Earths. Because of the global
increase in the needs of mining minerals for industrial purpose, numerous new projects have
been introduced around the world. The demand is increasing continuously even though the
production of minerals may not be sufficient. The major mineral sand deposit of the world is
spread throughout the countries. The exploration for mineral sand deposit has intensified
since the mid of 1980s due to increase the application of heavy minerals. India, Australia,
Canada, China and Brazil are the major countries these deposits found. The World
production and reserves of Rare Earth Elements are given in the table 1.

Country Mine % of production Reserves % of total

Production (million tones) reserve
(tones)
0(no rare earth 0 13.0 13
United States
mining)
120000 97 >36.0 36
China
Small <1 19.0 19

Russia(and
other CIS
countries)
Small 0 5.4 5
Australia
2700 2 3.1 3
India
650 <1 Small
Brazil
380 - Small
Malaysia
270 - 22.0 22
Other
124000 >99.0
Total
Table 1: Rare Earth Elements – World Production and Reserves (2009)
2.1.3. INDIAN SCENARIO
In India, monazite is the principal source of rare earths and thorium. The mineral monazite is
a prescribed substance as per the notification under the Atomic Energy Act, 1962. AMD has
been carrying out its resource evaluation for over five decades. It occurs in association with
other heavy minerals, such as ilmenite, rutile, zircon, etc. in concentrations of 0.4 - 4.3% of
total heavies in the beach and inland placer deposits of the country. The resource estimates of
monazite in the beach and inland placer deposits have been enhanced from 7.90 million
tonnes in 2002 to 10.21 million tonnes in 2005.The state wise resources are given below:

10.21
All India
3.73
Andhra Pradesh
0.22
Bihar
1.37
Kerala
1.82
Orissa
1.85
Tamil Nadu
1.22
West Bengal
Table No: 2: Resources of Monazite (In million tones)
EXPLORATION & DEVELOPMENT
Apart from Monazite sands, India has to look for rare earths from the primary source rocks.
In India, concentration of REE in hard rock has been recorded in association with
carbonatites, syenites, albitites, granites, pegmatite, apatite and phosphorites and
carbonaceous schists. Geological Survey of India has carried out preliminary search for REE
in carbonatite in Koraput and Kalahandi districts of Orissa. Pegmatite and the granite terrain
have been covered in Bhilwara, Ajmer and Udaipur districts of Rajasthan. Carbonatites of
Tamilnadu, West Bengal, Meghalaya and Assam were also sampled. So far, Bastnaesite has
been reported in association with Carbonatite from Puruliadistt,West Bengal and Monazite
has been reported from Carbonatite occurrence of Sung Valley (Meghalaya),Sevattur
(Tamilnadu) and Samchampi (Assam).In addition GSI has to examine all the data generated
from the proterozoic and younger granites and Iron oxide-copper-gold (IOCG) type deposits
and also their supergene/ laterite profiles. Proper evaluation of existing data and data
generated from National Geochemical Mapping Programme can also help in locating suitable
target areas for further search of REE.
Field investigations carried out by AMD for rare metal pegmatites in the last few years has
led to the discovery of significant rare metal pegmatites at Pandikimal, Jangapara,
Bhurpidungri etc. in Jharsuguda district of Orissa and Kawargaon, Bodenar, Metapal,
Challanpara etc. in Bastar district of Chhattisgarh apart from the known and established
pegmatite fields of Bihar , Rajasthan and Karnataka. These pegmatites were assessed and
evaluated for their economic exploitability and considerable tonnage was proved with

significant ROM grade. Some of them viz., Pandikimal, Jangaparain Jharsuguda and Bodenar
in Bastar district are under recovery for Columbite-Tantalite. Beryl i s also recovered as a by-
product. Columbite-Tantalite from Jharsuguda area, Orissa is niobium rich whereas those of
Bastar region, Chhattisgarh are tantalum rich.
In Southern India, a survey by AMD has resulted in locating new pegmatitic occurrences in
Holenarispur and Nagmangala Schist Belts of Karnataka. Similarly in Central India Bastar-
Koraputpegmatitic belt (BKPB) and pegmatites around Limboi in Sabarkantha Dist.,
Gujaratis rare metal bearing. Marllagalla pegmatite in Nagamangla Schist Belts forms the
single largest NbTa deposit containing economic grades of Ta2O5, which has produced
substantial tonnage of Columbite-Tantalite and Spodumene (lithium bearing mineral).Apart
from pegmatites, the granitic occurrences of Nb-Ta minerals near Kanigiri, Prakasam district,
Andhra Pradesh was also located and evaluated. The carbonatite bodies of Tamilnadu and
Meghalaya were reassessed for their pyrochlorecontent. Samchampi Alkali Complex in
Mikir Hills of Assam is another potential area for Nb-Ta minerals. The Niobium deposit at
the Samchampi Carbonatite Complex, Assam, and India extends over a considerable stretch.
High content of Nb, La, Y and Zr have also been reported for the first time in rhyolitic dykes
associated with Deccan basalt from Alechhills, Gujarat. The anomalous content in these
rocks is due to the presence of xenotime, ilmenorutile and monazite. The non pegmatitic
resources for rare metals are low and have problems of beneficiation which are being studied
by AMD. Key successes for the beach sand mineral industry are:-
 Increase the Ilmenite capacity to reach economic scale of production.

 Value addition project in minerals and rare earths compound.
 Initiate action to develop new mining areas.
 Forward integrate through stake in world leader in pigment Industry like Tinfoss, DuPont or
selling up a pigments plant.
 Explore other mining options in neighboring countries.

End Use RE required Present Status Expected(2030)
Magnets for the wind Nd, Pr, Dy, Tb (high 12,000 MW of wind -50,000 MW
strength magnets ~
Turbines
have 30% RE) Capacity
La(15 kg per car) Negligible EV Perhaps up to 1
EV, Hybrid
Nd(1 kg per can), million vehicles
vehicles(batteries ,
Dy, Tb, Ce
motor catalytic
converter)
Y, Eu, Tb Negligible LED Being promoted by
LED
government , could
reach- 1 million
bulbs
Ce, La, Mischmetal Huge growth Rate

Al, Steel, Mg
industry , grain
refinement
Eu Mostly imported Huge growing

Screens
market
brighteners(cell
phone, computers,
TV screen)
Pr, Sm, Gd mostly imported Computer hard disks,

Other magnets
microphones
Table No: 3. Potential RE Markets

2.1.4. STATE SCENARIO
On August 18, 1950 Indian Rare Earths Limited (IREL) was incorporated as a private limited
company jointly owned by the govt. of India and Govt. of Travancore, Cochin with the
primary intention of taking up commercial scale processing of monazite sand at its first unit
namely Rare Earths Division (RED) Aluva and Kerala for the recovery of thorium. After
becoming a full-fledged central govt. undertaking in 1963 under the administrative control of
Department of Atomic Energy (DAE), IREL took over a number of private companies
engaged in mining and separation of beach sand minerals in southern part of the country and
established two more divisions one at Chavara, Kerala and other at Manavalakurichi(MK),
Tamilnadu. After a gap of 20 years IREL commissioned its largest division called Orissa
Sand Complex (OSCOM) at Chatrapur, Orissa. Today IREL operates these four units with
corporate office in Mumbai and produces/ sells six heavy minerals namely Ilmenite, Rutile,
Zircon, Monazite, Sillimanite and Garnet as well as various value added products IREL is
making profit for the last 6 years with its sales turnover reaching a peak exceeding Rs: 2600
million in 2000-01, with export component of above Rs: 1000 million.
The west part of the Kerala is owned with long coastal belt. The coastal area have deposit a
huge of heavy minerals sand (Ilmenite, Rutile, Zircon, Monazite, Sillmanite)graphite, china
clay, fire clay, tile and brick clay silica sand, lignite, limestone, lime shell, even though the
mining activity is largely confined mainly to a few minerals.
The major mineral industries in Kerala are IREL Chavara, KMML Chavara; Malabar
cements Walayar, Travancore cement Ltd Kottayam, Kundara Ceramics Kollam, English
India Clay Ltd (ELCL) Trivandrum, Excel glass industry Alleppy, Kerala clays and ceramic
product Ltd Palayangadi Kannur, which the mineral based industries situated in Kerala.
2.1.5. CURRENT SCENARIO
India is a developing country so the development of industrialization is the very important

factor. The marketing demand of mineral is rapidly increase with time. The resources of
beautiful ornamental granites in the state are being exported to the different countries at the
current time. The growing of mining and mineral business largely increases and other private
companies have come into these field.
The resources are non-renewable and the availability of resources are decrease continuously,
so the mining industries are engaged in the search other new areas of the resource for mining.

2.2COMPANY PROFILE
2.2.1 HISTORY
God’s own country is best owned with a long coastal belt. Tickle under water current
initiated a process of natural separation & deposited sand which is rich in precious rare
earths.
The state owns mineral deposits like China Clay (Kaolin), limestone, lime shell, silica sand,
bauxite, graphite, granite etc. The major mineral based industries in Kerala are Indian Rare
Earth Limited-Chavara; Kerala Minerals and Metals Limited-Chavara; Malabar Cement-
Walayar; Travancore Cements Ltd-Kottayam;Kundara ceramics Limited-Kollam; EICL-
Trivandrum.
Herr Schomberg, a German Scientist noticed that the coir fibers exported from Kerala
contained a brown particle which he found out to be beach sand from the coastal belts of
Kerala. On further examination he found that the beach sand possessed some extra-ordinary
properties. He took it to his lab and on further examination he was able to find the chemical
composition of sand to be the same as that of monazite, a rare earth material. This discovery
illuminated the future of monazite.
The realization of the vast potential lying there across the coastal belt of Kerala led the
central Government to action and they then decided to harness the resources. This led to the
setting up of the atomic energy commission under the chairmanship of Dr. Homi. J. Bhaba.
The expert of rare earth soil was stopped and the possibilities for mining the soil were
examined.
IREL (IRE limited) was in the year 1950 at Mumbai, is a Government of India undertaking,
under the administrative control of the Department of Atomic Energy (DAE). During 1951,
IREL became a public sector undertaking and two mineral separation plants, one at
Manavalakurichi in Tamil Nadu in the year (1967) and the other at Chavara in Kerala in the
year (1970) were set up
Chavara plant is engaged mainly in the processing of the beach sand deposits available on the
coastal belts of the Neendakara, Kayamkulam. The Chavara plant of IREL is situated
approximately 16 kms north of Kollam. In 1956, under the instruction from the Government
of India, IREL took over the assets of the Travancore Minerals Limited. IREL also owns
another plant at Aluva, which is engaged mainly in the mineral separation.

Chavara is known for the supply of 60% of Titanium dioxide (TiO2) to the industry. As a
part of the effort it spreads over 22 km long carrier beach with an average width of 225m
between two tidal channels of Neendakara in the south and Kayamkulam in the north. It is
divided mainly into 8 blocks numbered I to VIII for the separation of Ilmenite used mainly
for the effort to increase the production and upgrading the quality of raw sand feed, work on
Rs.14 cores dredge and the wet concentrator project was later introduced at Chavara in 1987.
2.2.2 STRATEGIC INTENT

MISSION
 To harness beach sand in an environment & socially responsible manner.

 To provide the efficiency in producing minerals and their traditional and innovativevalue
added products of the world class quality.
 To produce the increasingly superior/novel products required by the customer.
 To play a dominant role in developing the rare earth market.
 To realize the maximum potential of the rare earths in a wide range of application.
 To build the professional, creative and the committed work force, nurture an
environment that creates faster learning, sharing and the development.
VISION
 To be a leading supplier of beach sand minerals from Asia by supplying 10% of world
demand for beach sand minerals over the next 7-10 years.
 To have the maximum utilization of the existing capacities, new capacity additions,
capturing additions, capturing the major portion of the incremental growth.
 By developing the competitive value added Rutile, Zircon, Sillmanite, Garnet products
that makes the handsome contributions to the revenue and profits.
 To become the preferred rare earth product supplier for the domestic customer to ensure
the long term sustenance and the profitability of the rare earth.
 To achieve the adequate efficiency in the monazite processing as long as it’s necessary
or worthwhile.

OBJECTIVES OF IREL
 To become nationally and globally competitive player in beach sand minerals.

 To improve productivity, capacity utilization and cost effectiveness.
 To maximize shareholders value.
 To strive for optimum value addition through obtaining technology for improving
international market share and growth in domestic market.
 To undertake by itself or through independent expert agencies, investigation into new
products as well as beach sand erosion and related phenomena of company’s operation.
 To evolve and implement eco-friendly policies, programmes and projects within the
AERD regulation.
 To develop the human resources of the company by optimizing their number, capabilities
and quality of life
 To strengthen R&D for achieving the above mentioned objectives
Oscom Plant,
Orissa
Mineral Division, Corporative & Registered Mineral Division,

Chavara Office, Mumbai Manavalakurichi
Rare Earth Division,
Udyogamandalam
Figure No. 1: CORPORATE STRCUTURE OF IREL

BOARD OF DIRECTORS OF IREL
NAMES DESIGNATION
Dr. R.N PATRA Chairman and Managing Director

IREL
SHRI S. GOPALAKRISHNAN Director (Finance) IREL
SHRI D. SINGH Director (Marketing) IREL
SHRI C.K ASNANI Director (Technical) IREL
Dr C.B.S VENKATARAMANA Joint Secretary Department Of Atomic

Energy
SHRI V.R SADASIVAM Joint Secretary (Finance) DAE
SHRI K.N JAYARAJ Chief Executive Nuclear Fuel Complex
SHRI ALKESH KUMAR SHARMA IAS

Secretary (Investment and Promotion)
SHRI NOWROZE J.N VAZIFDAR Government of Kerala
Dr. D CHANDRSEKHARAM Professor of Geology

Department Of Earth Science
Table No. 4: List of Board of Directors
2.3 PRODUCT PROFILE
According to Alderson, “Product is a bundle of utilities consisting of various product

features and accompanying services.” The bundle of utilities is compared of those physical
and psychological attributes that buyers received when he buys the product. The important
products of this unit are Monazite, Ilmenite (Leucoxene) etc. IREL product range also
includes the value added products like Zirflor & Microzir.
The following chart shows the list of those products which are mixed and processed in
IREL, Chavara.

Ilmenite
Rutile
Sillmanite
Monazite
Thorium Oxide
Thorium Nitrate
Rare Earth Chloride
Rare Earth Fluoride
Cerium Oxide
Cerium Hydrate
Zirflor
Microzir
Yttrium Oxide
Trisodium Phosphate
 Ilmenite
It is one of the significant ores of the metal titanium. It is mind as an important industrial
mineral in several deposits throughout the world. Many of the deposits are in heavy placer
sands. Ilmenite is very similar in structure to Hematite, and is essentially the same as
Hematite with roughly hard the iron replaced with titanium. Ilmenite is named after the
locality of Ilmen mountains, which are a part of the southern Urals of Russia. Ilmenite is
opaque in nature. It is having brittle tenacity and it is slightly attracted to magnetic fields.
 Rutile
Rutile is a major mineral source of the element titanium. It is typically about 60% titanium
and 40% oxygen. It can have some iron present, sometimes upto 10%. Rutile is one of the
most common titanium minerals occurring in gneiss, mica, schist, granite, limestone, and
dolomite. It is also associated with quartz, hematite and feld span. As a secondary mineral it
is common in beach sand deposits along with other titanium mineral, ilmenite.

Rutile is brownish red and other shades, but not black. It has hardness of 6.6, specific gravity
of 4.18 to 5.2, a metallic luster and a pale brown streak. Its crystals are prismatic, vertically
striated on furrowed. It fractures unevenly to sub conchoidal. Major uses of this lightweight ,
high strength, non corrosive metal are aerospace , automobiles, sports and medicine. Still its
main use is in paint as a paint pigment. It replaced lead as the most common paint pigment
used in the manufacture of paint. Other uses include a coating for tiles, and are used to treat
the air, both to preserve fruits and vegetables and to remove pollution.
 Sillimanite
Sillimanite is an alumino-silicate. Sillimanite is named after the American chemist Benjamin

Silliman. Sillimanite is one of the three alumino silicate polymorphs, the other two being and
ulisite and kyanite. A common variety of sillimanite is known as fibrolite. Sillimanite has
been found in Brandywine springs, Newcastle, Delevare. Salliminite is the best raw material
for the manufacture of high alumina reactories or 35% to 60% alumina bricks.
 Monazite
Monazite is a rare phosphate mineral .It usually occurs in small isolated grains as an
accessory mineral in igneous and metamorphic rocks such as granites, pegmatite, schist, and
gneiss. These grains are resistant to weathering and become concentrated in soils and
sediments down slope from the host rock. When in high enough concentrations, they are
mined for their rare earth and thorium content.
Monazite is a yellowish brown to reddish brown or greenish brown mineral with a resinous
to vitreous luster. Its translucent and rarely seen in large grains or as well- formed crystals.
Granular masses are sometimes seen where monazite is locally abundant. It breaks with good
to distinct cleavage. Its hardness ranges from 5 to 5.5. It has an unusually high specific
gravity that ranges from 4.6 to 5.4 depending upon its composition.
 Thorium oxide
Thorium oxide is a highly insoluble thermally stable Thorium source suitable for glass, optic
and ceramic applications. Thorium oxide is generally immediately available in most
volumes. Ultra high purity and high purity compositions improve both optical quality and
usefulness as scientific standards. Nanoscale element powders and suspensions, as an
alternative high surface area forms, maybe considered. Thorium is highly valued in glass and
ceramic production as a bright yellow pigment because of its optimum reflectance at 560
mm.

Oxide components are not conductive to electricity. However, certain perovskite structured
oxides are electronically conductive finding application in the cathodes of solid oxide fuel
cells and oxygen generation systems. Rare Earth oxide compounds are basic anhydrides and
can therefore react with strong reducing agents in redox reactions. They are compounds
containing at least one oxygen anion and one metallic cation. They are typically insoluble in
aqueous solutions(water) and extremely stable making them useful in ceramic structures as
simple as producing clay bowls to advanced electronics and in lightweight structural
components in aerospace and electrochemical applications such as fuel cells in which they
exhibit ionic conductivity. Thorium oxide is also available in rod, tubes, wire, slugs,
sputtering targets, foil, plate, ribbon, sheet, shot and spheres.
 Thorium nitrate
Thorium nitrate is a highly water soluble crystalline Thorium source for uses compatible with
nitrates and lower pH. All metallic nitrates are inorganic salts of a given metal cation and
nitrate anion. The nitrate oxygen atoms for a total formula weight of 62.05, Nitrate
compounds are generally soluble in water. Nitrate materials are also oxidizing agents. When
mixed with hydrocarbons, nitrate compounds can form a flammable mixture. Nitrates are
excellent precursors for production of ultra high purity compounds and certain catalyst and
non-scale materials.
 Cerium Oxide
Cerium oxide is also known as ceric oxide, ceria, cerium dioxide is an oxide of the rare earth
metal cerium. It is a pale yellow white powder. Cerium dioxide is formed by the calcinations
of cerium oxalate or cerium hydroxide. Cerium oxide is used in ceramics, to sensitize
photosensitive glass, as a catalyst and as a catalyst support, to polish glass and stones, in
lapidary as an alternative to jewelers rogue.
It is transparent for visible light, it also absorbs ultra violet radiation strongly, so it is a
prospective replacement of zinc oxide and titanium dioxide in sunscreens, as it has lower
photo catalytic activity. Cerium oxide has found use in infrared filters, as a replacement for
thorium dioxide in incandescent mantles.
 Cerium hydrate
It is also known as cerium hydroxide. Cerium hydroxide is a highly water insoluble

crystalline cerium source for uses compatible with higher pH environments. Cerium
hydroxide is generally immediately available in most volumes. Ultra high purity submicron
and nanopowder forms may be considered. Hydroxide, the OH anion composed of an oxygen
atom bonded to a hydrogen atom, is commonly present in nature and is one of the most
widely studied molecules in physical chemistry. Hydroxide compounds have diverse
properties and uses, from catalysts to detection of carbon dioxide.
 Zircon flour
Zircon flour is used in variety of applications, including ceramic frits, foundry mould
coatings, ceramic shells for investment casting , refractions, friction products, insulating
fibers and glass. It is manufactured by milling zircon sand, usually in ball mills, either in the
drystate or in slurry. Zircon flour can be packaged in bulk bags or paper sacks.
 Yitrium Oxide
It is a highly insoluble, thermally stable Yitrium source suitable for glass optic and ceramic
application. Oxide compounds are not conductive to electricity. They are extremely stable
and used in ceramic structures ranging from simple ceramic bowl to advanced electronics.
 Trisodium Phosphate
They appear in white to white powder, crystal and granules. It is highly soluble in water and
produces a alkaline solution. Trisodium Phosphate are used as cleaning agent , lubricant,
stain remover, degreaser food addictive etc…….
2.3.1 APPLICATION OF PRODUCTS
 Ilmenite:
It is used for the manufacturing of synthetic retile, titanium tetra chloride titanium dioxide
pigment, titanium metals and also for the production of the Ferro titanium alloys.
 Rutile:-
It is used for the coating of the welding electrode and also for the production of TiO2
pigment by the chloride process and for titanium tetra chloride for the production of titanium
metal or sponge.
 Sillmanite:
It is used in the ceramic and the refractory industries.
 Monazite:
It is used for the production of thorium rare earth by products.
 Thorium oxide:

It is used in the fast breeder test reactors.
 Thorium Nitrate:
It is used for the gas mantles.
 Rare Earth Chloride:
It is used in the manufacture of the mix-metal, which is used for making the light flints in the
production of mish metal catalysts, metallic soaps etc.
 Rare Earth Fluoride:
It is used in the making of the carbon electrodes and the nebulat cast iron.
 Cerium Oxide:
It is used for the polishing of the optical lenses, glassier, TV tubes, face plates etc.
 Cerium Hydrate:-
It is used as a polishing agent and as a catalyst.
 Zirflor:
It is used in the refractory and the foundry coating. It is also used as a parifer in the ceramic
industry.
 Microzir:
It is used in the ceramic industries for glasses, optical heat resistant porcelains, refractory
plastics, rubber etc.
 Yttrium Oxide:
It is used as phosphorous for the color TV tubes.
 Trisodium Phosphate:
It is used as regarding agent and a detergent.
 Rare Earth Oxide:
Titanium is used in the “Arc Carbon Industry.”

Specific
Product Specification Density Packing
gravity
Ilmenite Tio2 – 58% 4.45 – 2600 – In bulk HLP

4.54 2630 bags with
polithine liner
Rutile Q Tio2 - 95 4.18 – 2630 – In bulk 50 kg

Grade % 4.24 2650 HLP bags with
polithine liner.
Zircon Zro2 – 4.60 – 2900 – In bulk 50 kg

special yarded 58% 4.70 3000 HLP bags with
polithine liner.
Sillmanite Al2O3 3.20 – 1950 – 50 kg jute bags.

Q yarded 3.25 2030
Zirflor ZrO2 – - 1800 – 50 kg laminated

64% 1850 HLP bags with the
polithine liner.
Microzir ZrO2 – - - Liner 20 kg

63.5% laminated
polithine bags.
Table 5: Product Profile
2.3.2. QUALITY POLICY
Through the Quality Management System (QMS) implementation, IREL is committed to

provide the products of consistent quality to the satisfaction of the customer.
2.3.3. TECHNICAL EXCELLENCE
IREL uses the state of art technology in mining and mineral processing. The rich experience
and professional expertise of people who are one among the best in the industry and strict
compliances to quality standards has enabled IREL to remain as the leading supplier of heavy
minerals to the nation and abroad. IREL is always been driven by innovation and sound
manufacturing practices, be it in product, technology or process.

2.3.4. CUSTOMER PROFILE
Prime customers of the major products of the company are the following:-
 ILLMENITE:-
 Kilburn chemicals Ltd, Tuticorin.
 DCW Ltd, Tuticorin.
 Travancore titanium products Ltd.
 Cochin minerals and rutile Ltd, Kochi.
 Kolmak chemicals Ltd, Kolkata.
 RUTILE:-
 Esab India ltd, Chennai/khaddar.
 Ador welding ltd, Mumbai/Chennai.
 Royal arc electrodes pvt. Ltd. Vasai, thane district.
 Maruthi welds ltd, Gurgaon.
 D & H secheron electronics (i) Ltd, Indore.
 ZIRCON:-
 Tirupathi microtech (p) ltd, Udaipur.
 Ruby ceramics pvt. Ltd, pune.
 Astroncere, salaldist, sabarkantha.
 Johnson matthaey ceramics India ltd, hosur, Tamilnadu
 ZIRFLOR:-
 Foseco India ltd, pune.
 Videocon Narmada glass, Bharuch.
 H & R Johnson (i) ltd, Mumbai.
 Naharcolour& coating ltd, Udaipur.
 Bhanucerglaze (p) Ltd.
 SILLIMANITE:-
 Maithan ceramicspvt. Ltd, Chirkunda, Jharkhand.
 Manishri refractories, Cuttack.
 Associated cement companies ltd, Nagpur/katni.

CHAPTER III

3.1 ORGANISATIONAL STRUCTURE
UNIT
HEAD
)
MR HOD SH HOD HOD HOD HOD HOD HOD HOD HOD HOD HOD HOD HOD HOD HOD
(PDN) (MIS) (MKTG) (PUR) (S&D) (MNG) (QCL) (CVL) (RES) (HRM) (MED) (FIN) (I A) (S&E) (S&E) (MNT)
) ) ) ) ) ) ) ) ) ) ) )
DMR SH SH SH SH SH SH SH SH SH SH SH SH SH SH SH SH SH HOD
(PDN) (MKTG) (PUR) (S&D) (MNG) (QCL) (CVL) (RES) (HRM) (TRG) (LS) (SEC) (MED) (FIN) (I A) (FP) (PRJ) (MNT)
) ) ) ) ) ) ) ) ) ) ) )
SHIFT-IN MKTG PUR S&D I/C QCL CVL RES MED FIN I.A S&E MNT
CHARGE PERS PERS PERS SURVEY PERS PERS PERS PERS PERS PERS PERS PERS
SHIFT I/C
ENGINEER (DWUP)
PDN DEPT.
DWUP
PERS.
OPERATOR
I/C
SH BWC
(PC)
MNG
PERS
Figure No.2: Organisation Structure

As in every successful business venture, the success of IREL depends upon a perfect
synchronization and co-ordination between the various departments of the huge monolith.
The organization is headed by Unit Head who holds the thread of the functioning of the
various departments and is the ultimate arbiter on issue involving the working of the plant.
The compartmentalization of various departments has a Head of Department (HOD) as head

and a Deputy General Manager assisting him. IREL has separate department head for ach
departments. Following are the various departments of IREL: -
 Human Resource Department

 Marketing Department
 Finance Department
 Production Department
 Quality Control Department
 Civil Department
 Mining Department
 Medical Department
 Stores and Dispatch Department
 Safety Department
 Purchase Department
 Project &Maintenance Department
 Internal Audit Department
3.2 DUTIES, POWERS AND RESPONSIBILITIES OF TOP POSITIONS
 UNIT HEAD
The following are the responsibilities of the unit head of IREL:
 Overall responsibility for the health and safety of IREL
 Chairing the remark meeting.
 Responsibility assigned by Head Office from time to time
 Ensuring that the unit has organized celebrations including those related to health, safety
& environment through the concerned departments.
 Providing the resources for the implementation, maintenance and the continual
improvement of the management systems.

The following are the roles of the Unit Head of IREL, Chavara:
 Roles as the Head of the unit in the Health, safety and environment related celebrations.
 Participate in emergency evaluation.
 Compliance to safety related requirements includes the usage of PPE's as a role of model
for others.
The following are the authority of the Unit Head of IRE, Chavara:
 Approval of policy, objectives and targets.
 Approval of apex manual.
 Defining the responsibility and the authority of the heads of departments, management
representatives and the deputy management representatives.
 Authorizing various committees.
 Approval training programs of the financial commission.
 Authorization of the decisions taken at the review meetings such as safety &
environmental protection committee, environment management cell, customer service &
complaint redressed cell and the protection meetings.
 MANAGEMENT REPRESENTATIVE
The following are the responsibilities of the Management Representative:-
 Release of the management system related documents
 Initiating the management system related training programs such awareness and internal
audit training.
 Ensuring that the follow-up audit is organized based on the target given be the auditors.
The following is the role of the management representative:-
Co-ordination with the departments for ensuring maintenance and updating of register of
aspects and impacts, risk register, register of legislation and the management programs. In
order to co-ordinate the development, documentation, implementation and the maintenance
of quality, environment, health and a safety management system in line with ISO 9001:2000,
ISO 14001:2004, OHSAS 18001:1999, a member of the management among the HOD's is
appointed as the management representative by the Unit Head. In order to assist the
Management Representative a Deputy Management representative is also appointed from
among the members of the organization.

Management representative is responsible for ensuring that:
 Processes related to the management system are established, implemented and maintained.
 Reporting the performance of the management system including the opportunities for
improvement.
 Promoting the awareness of the customer requirements throughout the organization.
 Liaison with the external agencies such as certifying body on matters related to the
management system.
3.3 DEPARTMENTS
3.3.1. HUMAN RESOURCE DEPARTMENT
IREL, Chavara takes place it’s highly motivated and trained human resource that has
maximized its performance and their by its growth and profit. Morale of the employees
remains facilitating smooth working of the company. Skill requirements related to different
disciplines are identified and training programs and workshops are used to improve the
efficiency of the human resources.
Unit Head
Senior Manager HRM
Deputy Manager SM Medical
Officials
Clerks
Figure No 3: Departmental structure of HRM

HR department is led by General Manager and two Deputy Managers assisted him. The
Security Department and Time Office are working under the General Manager of HR
Department. Four Deputy Officers and 14 clerical staffs are working under the Deputy
Managers. People are the most important resource of an organization. The main functions of
HR Department are:-
 Administration.
 Industrial Relations.
 Training and Employee Welfare.
 Time Management.
ADMINISTRATION
The administrative functions of HR department include
 Manpower planning.
 Recruitment policy.
 Performance appraisal.
 Salary and wages administration.
 Industrial discipline.
 Maintaining service book and personnel file.
 Maintaining reservation register.
 Manpower Planning
Manpower Planning is important for any type of organization. It is the process which
determines how an organization should move from its current manpower position to its
desired manpower position. For this purpose, the HR department at IRE collects feedback
from all departments in order to identify their manpower requirements of various
departments and then the HR department crosschecks whether there is any overstaffing in
any of the departments. If these departments have excess of staff, they are transferred to
those departments where there is a shortage.
The company considers the number of employees presently as significantly high. There is a
problem that sometime the Voluntary Retirement Scheme (VRS) can lead to scarcity of
workers for particular job. At IREL using the process of multitasking the employees are

made fit to work in other function also. By the VRS scheme more than 100 employees have
been sent out within span of 3 years.
Manpower of the company
There are 482 employees in the company. Total executives are 102 and workmen are 380. The
number of contract workers is 800. Details have shown as below.
Male Female Total
Executives 87 16 103
Workmen 266 24 290
Total 353 40 393
TableNo6: Manpower Strength
 Recruitment policy:-
Recruitment in the Chavara Plant is done through local employment exchange for find out
prospective workers. The office staffs and managers are recruited by the Head Office through
tests and Interviews.
Recruitment Criteria
For the recruitment of candidates, the candidates should be above 18 years of age. The following
steps are taken before the recruitment of employees. They are Govt. guidelines, the recruitment is
done only through employment exchange, notification in internet and advertisement in
newspaper should be needed. Application will be scrutinized with the help of a selection
committee and eligible candidates are called for an interview.
Selection:-
The steps followed in the selection process are
 Inviting and receiving applications
 Scrutinizing the applications

 Selection Test: - The selection tests of employees are
 Aptitude Test
 Personality Test
 Achievement Test
 Trade Test
Appointment will be based on certain criteria's like they are medically tested after that induction
training should be given. After training for a period of one year or more they will be put as
permanent employees.
 Performance Appraisal:-
Appraisal is the evaluation of work' quality or merit. In the case of IRE performance appraisal
is a systematic evaluation of employees by supervisors or other familiar with their performance.
 Straight ranking method:-
Under this method men as a whole are compared from other men and ranked on the basis of
overall performance.
 Grading method:-
Under this method certain categories of work such asexcellent, very good, average, poor, very
poor are established and defined. Actual performance of each employee is then compared with
the grade definitions and ranked to evaluate the performance of the employees. Last grade
employees that are 8th & 9th grade, their work performance have been observed by supervisors.
But in the case of executives, Management By Objective (MBO)'s are observed, their
performance and efficiency are noted.
In IRE performance appraisal is done on yearly basistoassess the performance of the employees.
The appraisal is done by three persons:
 Reporting Officer.
 Reviewing Officer.
 Evaluating Officer.
Firstly the employees themselves do appraisal andthis is given to the reporting officer and the
person who has done the Key Appraisal together identifies the Key Result Areas and weightage
is allotted to each one of them. This is usually done at the beginning of the year. The reporting
officer checks whether the result are asset where met by the appraisal or if there is any deviation

from it. And this is to be sent to the reviewing officer and then to the evaluating officer. Various
other factors such as the appraiser's managerial skills like job knowledge, interpersonal skills are
also included, guided and that is allotted in the appraisal and there promotion is based solely on
seniority.
Promotion:-
In IREL, promotion is given based on seniority and experience. Promotion is a transfer of an

employee to a job that pay more money or that enjoys some preferred status. Sometimes the
company is considering the length of the service, education, training courses completed, previous
work history etc. Sometimes the company is also considered ability, hard work, co-operation,
honesty etc.
Condition for getting Promotion
 Average leave should not exceed more than 15 days.
 Any disciplinary actions should not be taken during the service of periods.
 Should not apply for job in any other organization.
These candidates are eligible for getting promotion.
d) Salary and Wages Administration:-
Wages in the widest sense means any economic compensation paid by the employer under some
contract to his workers for the service rendered by them.
Acts Followed:
 Workmen Compensation Act 1923 Sec 2(m).
 Payment of Wages Act 1936 Sec 2 (VI).
 Payment of Wages Act 1948.
PAY SCALE
The monthly remuneration received by each of the employees including system of compensation
is as given below
Grade Scale of Pay
W-I Rs. 8340 - 3% -23470
W-II Rs. 8440 - 3% - 23750
W-III Rs. 8550 - 3% - 24060

W-IV Rs. 8670 - 3% - 24400
W-V Rs. 8800 - 3% - 24770
W-VI Rs. 8940 - 3% - 25160
W-VII Rs. 9090 - 3% - 25580
W-VIII Rs. 9250 - 3% - 26030
W-IX Rs. 9420 - 3% - 28968
Table No7: Scale of pay for workmen
Code Designation Pay Scale
E-0 Deputy Officer 12600- 3% - 32500
E-1 Officer 16400 - 3% - 40500
E-2 Senior Officer 20600 - 3% - 46500
E-3 Deputy Manager 24900- 3% - 50500
E-4 Manager 29100 - 3% -54500
E-5 Senior Manager 32900 - 3% - 58000
E-6 Deputy General Manager 36600- 3% - 62000
E-7 General Manager 43200 - 3% - 66000
E-8 Chief General Manager 51300 - 3% - 73000
Table No 8: Scale of pay for officers

 Industrial Discipline
Disciplinary actions are taken in the HR department. Procedure for disciplinary actions is on
receiving a complaint about a particular employee, explanation is asked. Employee will give an
explanation before 15 days. If the explanation is not satisfactory he will be given a charge sheet
and will also conduct a domestic enquiry. For this purpose an enquiry officer is placed. After
conducting the enquiry the report should be sent to the disciplinary committee and if necessary
certain punishment may also be given.
 Industrial Relation:-
Most of the disputes will be settled by the company and trade unions. If it is not cleared, they can
approach the government. The Trade Unions active in IRE are:-
 United Trade Union Congress (UTUC).
 Indian National Trade Union Congress (INTUC).
 Travancore Mineral Workers Union (UTUC (B).
These are the recognized trade unions. There are some criteria for recognizing a union; the union
will have 15% of employees as their members. Also some participative forum is present; they are
Plant’s Committee, Safety Committee and House Building Committee. These committees will
have the equal participation.
 Grievance Redressal:-
Grievances of the customers related to the product quality, servicing of the purchase orders,
availability of the products in the company in short supply are documented properly and the
actions on such matters are recorded.
Direct marketing functions as the grievance redressal authority & interface with the
administrative ministries, registered professional trading/ manufacturing assistants and the other
statutory bodies. Grievance that still remains un-repressed comes to CMD for their final
redressal.
Communication of functional Director [PENTEX] deliberates the policy matters relating to the
grievances & redressal thereof for the corporate as a whole. Head [HRM] is in charge of the
public/staff grievance redressal system.

The following are the functions of HRM department:-
 To recruit personal up to the rank of tradesman/titter/clerical grades & the trainees.
 To identify the training needs & provide the training.
 Ensuring hygiene in canteen/guest house.
 Considering the security services
 Training & Employee Welfare

TRAINING AND DEVELOPMENT
"Training is the act of increasing the knowledge and skills of an employee for doing a particular
job"- Indian Rare Earth Ltd adopted various techniques of training for increasing the mass
productivity. The training program is restructured regularly in IRE. The objective of the
training and development in IRE are;
 Increase the efficiency.
 Increase the moral of the people.
 Reduce the absenteeism.
 Training:-
Additional competency requirements & personnel are identified based on the addition of the new
facilities or the changes in the proactive/processes. The training needs are identified based on the
annual basis or need basis. Need for awareness programs (including safety awareness based on
the hazards & the risks identified) are also planned for the various levelson their understanding of
policy, their contribution towards relevant objectives, health & safety practices or as well as
safety, related performance of the organization. Training procedures also considers the need for
conducting the training in the local for conducting the training in the local language, use of visual
aids, based on the participants’ ability, literacy as well as the language skills. Effectiveness of the
competency of training/awareness training are reviewed & recorded.
Procedure for Training
 Identifying the training needs
The company identifies the training needs through various ways: -
 Organization Analysis.
 Task Analysis.

 Man Analysis.
 Executives themselves will discuss the training needs.

 Charting out the training plan for a period.
 Based on feedback individual training is given.
Training Methods
IRE has mainly four types of training methods.
 In-house Training.
 External Training.
 Vocational Training.
 First Aid Training.
The training method can be grouped on the basis of level of personnel in the organization.
 In-house Training: - Otherwise known as on the job training. In this method expert
from outside come to the organization and give training.
 External Training: - Also known as off job training is given outside the organization.
 Vocational Training: - At least 20 % of the employees should be trained every year.
 First Aid Training: - 30 people in one batch and give them training.
EMPLOYEE WELFARE:-
Two types of employee's welfare are present in IREL. They are
 Statutory welfare.
 Non Statutory Welfare.
Gratuity, Provident Fund, Pension, Canteen, Medical Allowances are included in the statutory
welfare, Festival Allowance, LTC, Recreation, Tour Facilities are included in the non-statutory
welfare. Also the IREL gives some kind of allowances. They are:-
Shift Allowance
For employees working in shifts expect general shifts will get an allowance as follows
1stShift (6 am to 2 pm) -Rs: 10/day
2ndShift (2 pm to 10 pm)-Rs: 15/day
3rdShift (10 pm to 6 am)-Rs: 25/day

Hard shift Allowance

Since the plant handles sand for its production, it creates adust in the atmosphere. Considering
this hardship in work every employees of Chavara plant gets Rs: 135/- month as hardship
allowance.
Uniform Allowance
Every employee is provided with two pairs of uniform in every year. Rs: 100/- per month as
washing allowances is granted for all employees.
Transportation Allowance
Every employee (except officers) gets Rs: 700/- per month as conveyance allowance. Officers
will get minimum Rs: 1000/- per month as Car Allowance.
Canteen
A round the clock canteen is provided for the employees. Company will charge Rs: 6/day from
each employee. The canteen is under the control of company.
Attendance Bonus
To increase attendance in the company, the company gives annual bonus of 12 days wages for
every employee who has minimum 268 days attendance.
Production Incentives
Every employee gets an amount of Rs: 525/ year as Production Incentive from the profit.
Leave Facilities Available InIREL
Casual Leave - 15 days per year.
Sick Leave - 10 per year (workers).
10 full/20 half (Officers).
Earned Leave - 33 days (It can be maximum of 240 days).
Surrender Leave - Each employee can surrender maximum 99 days/year or 75% of earned
leave.
Other Benefits
 750 ml milk/ day.
 4 pears soap/month.
 One Turkey or Towel/year.
 Shoes (1 pair)/ year.
 One Umbrella/year.
 House loans up to 3.5 Lakhs.
 Medical Facilities.
 Educational Allowances to workers children.
 Festival Allowance.
 Group Insurance Scheme
TIME OFFICE
There is a fully fledged office headed by Deputy Administrative Officer. It follows a punch card
system. Different allowances of employees are given and it is mainly dependent on attendance. It
is provided according to the report from the time office. The time office is working under the
HRM department. The main function of this department is to maintain attendance records, leave
and service records etc. The various allowances, attendance bonus all these records are
maintained by the time office department. Also yearly attendance bonus is given to the
employees.
Attendance of 265 days/ year - 12 days salary.
General Manager
HRM
Deputy. Admin
Officer
Senior Assistant
Assistant Clerk
Attender
Figure No4: Structure of the time office

For recording attendance punching card system is followed here. The attendance register is
usually kept in time office. The time office collects attendance from concerned authority also
and matches with the punching system and avoiding swapping. Time office has three centers
for punching in convenience of employees. In mining area, in dredging plant also keep
mechanical punching machine. For the purpose of salaries the time office is sendingthe
records to the finance department. If the finance department asks for any clarification they
will do it.
TRANSFER POLICIES OF IREL, CHAVARA
Transfer is the movement of an employee from one job to another without involving any
substantial change in his duties, responsibilities. The company is following 4 methods.
 Production Transfer:-
When a particular department or job is faced with the pressure of works, its strength may
supplement through from other departments. Such transfers are generally made where any
department is overstaffed and other is the short of manpower.
 Replacement Transfer:-
A replacement transfer is the transfer of a senior employee to replace with a junior employee
or new one.
 Shift Transfer:-
When units in shifts are there, employees are transferred from one shift to another on similar
job.
 Department Transfer: -
Transfer from one department to another within the plant or within the organization.
3.3.2 MARKETING DEPARTMENT
Marketing refers mainly to a social process. Here, the individuals and the groups mainly
obtain what they need &want by creating, offering and freely exchanging those products and
the services having the value with the others.
Marketing can also be defined as that art of selling the products. This department is
functioning mainly under the control of the General Manager of the Marketing department.
The marketing section comes mainly under the direct control of the Chief General Manager
and the department is headed by the deputy manager.

The marketing process which is done mainly in IRE is on the following products:-
 Ilmenite.
 Rutile.
 Zircon.
 Sillmanite.
 Zirflor.
 Leucoxene.
HOD (Marketing)
Deputy GM
SH Marketing
Marketing Personnel
Figure No 5: Department structure - Marketing
Objectives of the marketing department:-
 Maximum Turnover.
 Maximum profit.
 Maximum customer satisfaction.
 Maximum customer relationship.
The following are the responsibilities of the HOD-Marketing:-
 Handling of the customer complaints and conducting of monthly meetings of CS& CRE.
 Identification of the training needs of the employees reporting to him
 Ensuring the compliance with directives from HO with regards to the marketing
department in consultation with the unit head (Including environment, health and safety).
 Monitor and co-ordinate all the activities in connection with the shipment of the minerals
to overseas customer to make sure that the contractual requirements in terms of quality,
quantity schedule and documentations are met.
 Marketing process monitoring and the initiation of the corrective actions against the
deviations.

Roles:-
 Member of management review meeting and other meeting as the member of the
committee.
 Participate in the emergency evaluation [both actual/mock].
 Participate in the safety & environmental related celebrations and the awareness
programs.
 Participate in the cross functional team work for significant analysis & OH & S risk
analysis.\Provide the necessary feedback to S & E department on the actions taken based
on the directive received from HO / statutory agencies related health, safety &
environment.
 Customer satisfaction:-
The feedback from the customers is collected once in a year mainly to monitor the
information’s relating to customer perception and to determine whether the organization has
met the customer requirements. There are then analyzed& recorded. These are then
analyzed& recorded. These are reviewed at CS & CRE meeting to plan for the further
improvements with the aim of enhancing the customer satisfaction.
 Handling the customer complaints :-
The customer complaints are then received and recorded. Complaints are then forwarded to
the concerned department for initiating the corrective and the preventive activities based on
the course of the problem. There are also viewed at the CS& CRE meeting. Once the
actions are taken they are verified for the effectiveness by the HOD's of the concerned
department.
Product Price
Ilmenite 8500/ton
Rutile 145000/ton
12500/ton
Zircon 117000/ton
Sillmanite 20000/ton
Leucoxene 45000/ton
Table 9No: Price of Products

 Customer related process :-
Beach sand minerals and its products of standard specification are being produced and
supplied against the order received from the customer as per the instructions from the
marketing division of HO. These are received and then recorded. Requirements are not
specified by the customer specified/intended needs if any are also identified. Statutory & the
regulatory requirement related to products are also identified through the DAE license,
geological permits etc.
 Customer communication:-
Procedure for communicating with the customers is about the handling of the enquirer, orders
& amendments. It gives the procedure for communicating the customer based on complaints
if any, relevant information based on the customer feedback. Customer is well & good
communicated about the products through the websites or against the specific requests.
 Functions of Marketing Department
 To ensure that customer requirements are understood before accepting order or submitting
quotations in compliance to applicable rules and regulations.
 Execute customer purchase orders.
 Samples to customers
Samples are sent to customers on their request or as per instructions form head office for
their evaluation of suitability for their requirement. Free samples are sent to customers as per
the following procedure:
Up to 500mg : HOD (marketing) intimates section head to prepare sample of required

quantity along with gate pass.
501 to 1kg : HOD (marketing) prior approval from unit head and follows the above
procedure.
Above 1 kg : had office approval with information to unit had and follow the above
procedure.
 Customer Visit
Every quarter five customers are selected for visit to know the prevailing market condition.

 Export Sales-Order Processing
Head office carries out Export Marketing activities. Overseas enquiries received at IRE
Chavara, if any are forwarded to Head office for necessary action. The export order is
executed in three stages.
o Pre-shipment documentation & shipping instruction
o Transporting and shipping
o Storage, Bagging and Loading to ship
 Customer Complaints
 Complaints are received verbally or writing or during customers visit to the plant.
Complaints are received either from customer directly or through HOD.
 A customer service and complaints residual cell has been constitute in IRE. The
committee head constitutes the committee with HOD's from marketing, production, S&D,
Finance, HRM departments and a secretary from marketing department CS & CR meeting
is conduct for each quarter or as and when required.
 Complaints are received by HOD [marketing] and forwarded to the secretary along with
copy complaint if received in writing.
 An acknowledgement letter is sent to the customer by the secretary informing them the
disposal action and that the complaint is being taken up for necessary action.
 Customer Feedback
Changing needs of the customers and their feedback on the service provided to them by IRE
are identified by means of periodic interaction. Customer feedbacks are collected every
financial year with an objective of identifyingtheir satisfaction levels. Feedback is collected
from customers who have lifted products during last year. The data collection is done
through circulating questionnaire as per format.
 Competitors
Until the company enjoyed monopoly till recently but now it has some competitors in
domestic and foreign markets. Companies live Vaizag[Andrapradesh], VV
Minerals[Tutocorin-Tamilnadu], in the domestic market and RGG Ltd [Australia], Western
Sands[Australia], Jintania and Jintos[Norway], Richard's Bymenerals Ltd [South Africa]

 Major Customers
CMRL, Steel companies, Ceramic companies, Reo India, Kerr-MGGEE Corporation, Dug
on.The last three companies are regular customers who are producing Titanium Di Oxide
Tio2.
 Pricing
Pricing is very crucial decision for marketing management. The objective of the firm is to
get maximum profit. It is very much depends upon the correct decision in pricing. The price
will have to accommodate with all the additional cost involved in respect of packing, labeling
- consolidated marketing is done in IRE.
1.3.3 FINANCE DEPARTMENT
Financial management deals with the acquisition of the funds and its utilization. It is very
much essential to meet the financial needs of the business enterprise. Financing refers
mainly to the process of planning, acquiring, utilizing and controlling the funds used in any
kind of business. Finance forms mainly the life blood of any business. For the growth and
the establishment of any financial enterprise, finance is essential.
A public company can raise mainly huge capital through the issue of shares. In addition to
this profit is shared in the form of reserves. The firms raise the borrowed capital mainly
through the debenture and loans.
Loans can mainly be classified into 2:-
 Long term loans
 Short term loans
Long term loans are obtained mainly from the financial institutions. Short term loans .
Functions of the finance department include mainly the following:-
 Main functions of department are to get all the receipts and make all the necessary
payments and also to record all the transactions and to prepare the final accounts.
 To maintain the accounts on the annual basis as per the requirements section-20 G of the
Companies Act-1956.
 To ascertain and record the excise duty on the goods manufactured as and when goods are
dispatched.

 To find the value of the finished goods. These are valued at cost or market price
whichever is lower.
 To value the fixed assets on the cost price.
 Preparation of pay rolls
 Calculation of labor and overhead cost of operation and the products.
 Claims against the company not admitted are treated as the contingent liabilities
 Monitoring the attendance record of the employees for calculating the bonus and the
allowances.
 Preparation of cash flow statement to show the actual cash receipts and the payment of the
company
Chief General Manager
Deputy General Manager
Senior Finance Officer
Deputy Finance Officer
Assistants
Figure No 6: Department Structure – Finance.
The following are the responsibilities of HOD - Finance:-
 Initiation of the actions based on the financial audits
 Ensuring the compliance with the directives from the Head office with regards to finance
in consultation with the unit head [including those related to environment, health and
safety]
 Responsible for all the financial transactions
 Participate in the emergency evacuation [both actual/mock

Roles of the HOD-finance can be given as the following:-
 Participate in the safety and the environmental related celebrations and the awareness
programs.
 Participate in the cross functional team for the significant analysis and the OH & S risk
analysis
 Member of the management review meetings and other meetings as the members of the
committee.
The following are the sections in the finance department:-
Cash Section
Bank Section
Sales A/c section
Establishment section
Stores A/c department section
Assets & Depreciation section
Costing department section
 Financial Resources
The required financial resources for the above resources are provided based on the approval
by the unit head/HO. These are coordinated by the HOD [Finance].
 Operating control - Finance
Payment:-
 Ensuring the checking of payment vouchers by a minimum of 2 different personnel.
 Verification of cash balance on a daily basis by the cashier and any discrepancies; if any is
brought to the notice of HOD[finance]
 Any discrepancies identified based on the audit and by the 9A is reviewed by the HOD
[finance] and the actions are initiated to avoid this.

 Cash in Transit:-
 Insurance policy is maintained for the cash in transit; and ensures that it is renewed
through the purchase department[HO]
 Use of the company vehicle for buying and then bringing the cash from bank.
 Salaries &Wages:-
 In general salary is paid through bank towards this and arrangement is made for having an
extension counter of SBT in operation on all working days.
Particulars Sales (Crore) Profit (crore)
2011-2012 123 17.04
2010-2011 93 3.18
2009-2010 120 28.23
2008-2009 108.11 22.78
2007-2008 83.28 11.61
2006-2007 78.11 3.96
2005-2006 75.31 7.61
2004-2005 57.53 0.46
2003-2004 89.03 11.78
2002-2003 104.29 23.10
Table No 10: showing the sales & profit 2002-2012:-

1.3.4 PRODUCTION DEPARTMENT
The act of making goods & services is called as production. In the day-to-day activities the
word "Production" refers mainly to the act of creating something. i.e. simply the conversion
of raw materials to the finished goods.
Functions of the production department includes the following :-
 To plan the production.
 To ensure that the production is carried under the controlled activities.
 To ensure whether production functions carried out by the organization are in compliance
with the environment, health and the safety environment.
In IRE, sand is collected mainly through the mining process. The sand is filtered `through
special equipment like spirals, cones and jugs to produce a bulk concentration of the heavy
drying, screening, electromagnetic and the electrostatic processes and then used for
separation. Minerals found in the coastal areas are collected either manually or through the
mechanical means.
HOD - Production
SH (Production) SH (MIS)
Shift in Charge SH (Process

control)
Shift Engineers
Production
department personnel
Figure No: 7 Department structure – Production

The responsibilities of the HOD-production are:
 Ensures that the production is carried out as per plan.
 Identification of training needs to the employees reporting to him.
 Initiative of corrective/preventive actions as applicable through the section head/ shift-in-

charges or SH against in process. Final products non-conformities and the customer
complaints related products quality problems.
The roles of the HOD-production are:
 Member of the management review meeting and other meeting as the member of the
committee.
 Participate in the safety and the environmental related celebrations and awareness
programs
 Provide necessary feedback to S & E department on the actions taken based on the
directive received from the HO/statutory agencies related health, safety and environment
The production process in IRE is done mainly with the help of 3 plants:-
 Mineral recovery plant[MRP]
 Concentrate up gradation plant[CUP]
 Mineral separation plant [MSP]
 Mineral recovery plant:-

The mineral recovery plant consists of a floating dredging plant which could be moved from
one place to another. This is termed as the floating mineral recovery plant. The plant is
placed in an area of which has a water depth of about 9 meters. The sand which also contains
water i.e., mainly the slurry is then pumped to the main unit. From there the mixture is
actually sent into the storage tank which is called as the "Trammel". Then the same sand is
sending for the separation. After the production the waste sand along with some quantity of
water will be pumped out. The MRP has the capacity to dredge about 4-60 tones per shift.
 Concentrate up gradation Plant [CUP] :-

The concentrate up gradation plant is used mainly to upgrade the sand which is available
from various sources with various compositions. The function of the CUP is mainly to
enrich the concentrate from various sources above 90% heavy minerals with the help of the
spiral separators that mainly makes use of the gravity techniques.

 Mineral separation Plant [MSP] :-

In the mineral separation plant mainly the individual minerals are separated out from the raw
sand on the basis of the below 4 properties of minerals namely:
 Electrical conductivity
 Density difference
 Magnetic susceptibility
 Surface property
Principles used in mineral

separation
Conductivity Magnetic Gravity Forth

Separation Separation Separation Floatation
Figure No 8: Principles of Separation
The products that are obtained from CUP with an uniform composition above the 90%
heavy minerals contents are then dried using the fluidized bed drier [FBD]. These are then
sent for the electrostatic separation with the application of different types of electrostatic
separators. From there the basic classification of the products takes place; i.e. as conducting
and on-conducting.

Figure No. 8: Process flow chart for DWUP

Ilmenite 15000 tons
Rutile 9000 tons
Zircon 14000 tons
Sillmanite 8000 tons
Zirflor 6500 tons
Table No11: Production capacity of Chavara Plant
Process Details
Dredge and wet up graduation plant
The description of various sequences operations in the DWUP is detailed below :
 The bucket wheel cutter suction dredger system is employed for dredging the deposits to a
depth of eight meters.
 The sand slurry is pumped by using gravel pump to the trammel screen, to remove
materials of size above 3mm.
 The oversize material (+3mm) from the trammel screen is dumped in the pond itself and
the under size material (-3mm) is collected in surge bin (125t capacity).
 The slurry from the surge bin is pumped into a set a spirals.
 Quality control department collects samples, the samples are analyzed and recorded as per
quality plan. Dredged sand is concentrated usinga set of spiral concentrators. The
concentrate is pumped and collected as heaps. Tailings are stacked at the rear of the plant
using a tailing stacker system for filling the dredged out area.
 Visual inspection of tailing and concentrate is done once in a shift against reference
sample as per quality
 The output is pumped to an output stacker provided with hydro cyclone and after
dewatering the same is loaded in tippers by using wheel loaders and taken to raw sand
stock yard near HUP.
 The output and tailings are sampled, analyzed and recorded as per quality plant.
 The DWUP output is transported to the mineral separation plant by tippers and is un-
loaded at yard marked as "Raw Sand Stock Yard" near HUP.
 Prior to unloading at the stock yard, the DWUP output is weighed at weigh bridge
 The refilled area is leveled and afforestation is undertaken.
 The refilled area is utilized for resettlement of the evictees as per rehabilitation and
resettlement schemes. The common facilities such as drinking water, electricity, roads are
provided by the company as per the above scheme.
Beach Washings collections
 Beach washings from assigned mining areas are collected either departmentally or
contractually. In both the cases heavy earth moving machinery like wheel loaders are
used for collecting the sand.
 Loadings of the collected sand to the tippers is done either by using wheel loaders or
manually. Manual loading is carried out by employing company employees or by forum
employees. The transportation of beach washings from the mining area to the raw sand
stock yard is done contractually by using tippers and unloaded at yard marked as "Raw
Sand Stock Yard" near HUP.
From 1990 onwards IREL use dredge and wet up gradation plant for mining raw sand. It is a
facility of mining by using suction cutter in floating dredger. The raw sand obtained through
dredging operation contains about 40% by weight heavy minerals are upgraded to 90%
heavies. It is accomplished through floating heavy up gradation plant installed along with
the dredger. The collection of raw sands also conducted at the beach area. Raw sand
collected is called beach washings. Heavy mineral content of beach washings vary from
20% to 40% depending up on the area of collection.
3.3.5 QUALITY CONTROL DEPARTMENT
The quality control department is one of the main departments of IREL, Chavara. IREL,
Chavara has got mainly 3 ISO certification.
ie. ISO 9001:2000, ISO 14001: 2000, OHSAS 18000
 Here ISO 9001:2000 refers to the quality of the products being produced at
IREL,Chavara.
 ISO 14001:2000 refers to the environmental factors of production at IREL, Chavara.
 OHAS:18000 refers to the organization ;health, occupation and the safety of production.

The following are the 4 important steps of quality analysis at IREL,Chavara.
 Inspection of incoming materials
 Intermediation
It includes mainly 2 steps:-
 Up gradation
 Separation
 In-process check
 Final analysis
There are 2 quality control techniques used in IREL, Chavara:-
 Mineralogical Test
 Chemical Test
Section Head
Deputy. Manager
Chemical Laboratory
Senior Scientific Officer
Scientific Officer
Deputy. Scientific
Officer
Attenders
Figure No.10: Department Structure - Quality Control

The following are the functions of the quality control department:-
 To ensure that the raw materials process and the finished products confirms to the
specified requirements holding compliance with the environment, health and the safety
requirements.
 Ensuring compliance to health, safety & environmental requirements.
3.3.6. CIVIL DEPARTMENT
The maintenance or the civil department has direct impact on the functioning which in-turn
affects the over-all health and the working of the organization. The civil department also
looks after each and every strategy associated with the purchase of al land for performing the
mining activities.
The main activities that are taken over by the civil department are:
 Proposal for a new project
 Survey/Investigation
 Drawings/Estimation
 Tender Notice
 Contractors end list preparation
 Tender opening
 Tabulation statement
 Recommendation
 Checking of IA & its' presentation
 Minutes preparation for the 5 PC meeting
 Preparation of work order
 Execution of agreement
 M-book preparation

HOD (Civil)
Section Head (Civil)
Civil Department Personnel
Figure No. 11: Department Structure – Civil
The following are the functions of the civil department:-
 To create the infrastructure and to facilitate the smooth operations of the firm
 To carry out the construction as per the plans and monitoring and maintaining the related
records
 To monitor and maintain the company structure
 To estimate the cost involved in the erection of new structure.
 To report to finance department about the plans and cost involved in the construction,
maintenance of the new structure as well as the existing ones.
The responsibilities of the HOD of the civil department are :
 Ensuring the compliance with the directives from head office, with regards to civil,
maintenance in consultation with the unit head [including those related to the environment
, health and safety]
 The civil maintenance process monitoring and initiating the corrective against deviations.
The roles of the HOD of the civil department are:
 Participate in the emergency evacuation [both actual/mock]
 Member of the management reviews the meeting and the other meeting as the member of
the committee.
 Participate in the cross functional team for the significant analysis and the OH & S risk
analysis.

Land acquisition:-
The required land for mining is identified and then acquired as per the prevailing rules and
regulations. HOD [Resources] co-ordinates these activities in consultation with the unit
head.
3.3.7. MINING DEPARTMENT
In IRE, the raw materials for production mining process are collected through mining
process. Mining process is done by IRE mainly in 2 places. One at
Vellanathuruthu/Ponmana and the other at the 132 mining area.
The mining area at Vellanathuruthu is mainly divided into 8 blocks i.e., 1,2,3,4,5,6,7, and 8.
Here the blocks 2, 4, 6, 8, are owned by IRE and 1, 3, 5, and 7 by KMML, Chavara. But due
to sea erosion the blocks 1, 2, 3 and 4 are owned by IRE for mining. For the production
process, the sand is mined from different places using the 2 methods:
 Sea washing
 Dredging
Sea washing
This mainly refers to a natural process in which sand [raw sand] is collected mainly through
beach washing process. The sea deposits large amount of raw sand which is rich in heavy
minerals over the sea shore at a length of 22.5 kms. This raw sand which is rich in the
mineral deposits is collected and it's brought to the mineral separation plant.
Dredging
This technique uses mainly the artificial methods for mining the raw sand. Dredges are the
equipment that can be moved from one place to another.
IRE, Chavara owns mainly two floating dredges [material recovery plant [MRP] one at
Karithura and the other at Puthenthura. These equipment are mainly imported from the
Newman Equipments private limited, Australia, which costs about Rs.10 crore as its
establishment cost.
The plant DWUP has a floating dredging plant which is used for tech mechanized recovery
of the minerals operates both hydraulically and electrically. These dredges are floating in an
area having a water depth of 6 meters. This mixture of sand and water that forms the slurry
is pumped up to the heavy up gradation equipment. The DWUP is capable of dredging about
40-60 tones per hour. The waste sand that is available after further production process from
DWUP is used in turn to backfill the dredged area.
Many contract workers, workers employees and other official’s works in such mining areas.
The company vehicles are also used to bring sand to and from the company.
HOD Mining
Senior Senior Manager

Manager Mining (Block 4)
Mining (Block
2)
Senior Manager Mining Deputy Manager

Engineer
Employers DTO
Employers
Fig. 12: Department structure – Mining
The Roles and responsibilities of HOD-Mining are;
 Recommendation for the selection of the contractors for contracted mining and transport
 Ensuring raw sand quantity meets the budget requirements
 Ensuring raw sand quality
 Co-ordination with HRM for the completion of vocational training as per plan.
 Tracing out the different mining areas.
The following are responsibilities roles of the HOD in the mining department:-
 Member of management review meeting and the other meeting as the member of the
committee
 Participate in the emergency evaluation [both actual/mock]

The procedure for carrying out the mining, mineral separation and production of mineral
products under the controlled actions include:-
 Characteristics of the products at the various stages are defined through the quality plan.
 Work instructions or the quality plans also details the various process parameters to be
monitored at various stages and monitoring equipment of required accuracy are provided
at different stages as per the process plan.
3.3.8. MEDICAL DEPARTMENT
The medical department functioning in the IREL is the most effective & efficient one. In
IREL, every member is capable of free attendance, treatment in the dispensary. Cases beyond
the scope of the dispensary will be referred to the major hospitals that are centered in Kollam
& Karunagapally. The company takes the whole payment of the officers in such cases. The
dispensary works for the whole 24 hours.
Functions of medical department:
 To carry out the medical examination of the employees and the whole family members.
 Examining compliance to the environmental requirements.
 Ensuring that the employees are fit in accordance with the medical standards for their job.
Senior Manager
Nursing Officer
Pharmacist Lab Technician
Male Nurse
Attender
Figure No.13: Department Structure- Medical

The following are the responsibilities of the HOD medical:-
 Medical examination of the new recruits
 Arranging the periodical medical examination annually for classified radiation workers&
canteen employees and once in 5 years for the remaining workers.
 Arranging the pre-retirement medical examination
 Identification of training needs of the employees reporting him.
 Ensuring the compliance with the directives from the head office with regards to the
medical in consultation with the unit head.
The following are the roles of the HOD medical:-
 Member of the management review meeting as the member of the committee.
 Participate in the safety & the environmental related celebration and the awareness
programs.
 Provide the necessary feedback to the S & E department on the actions taken based on the
directives received from HO/statutory agencies related health, safety & environment.
The following are the responsibilities of the HOD of the safety & environment
department:
 Overall responsibility forthe activities related to safety, fire protection & environmental
functions.
 Coordination with the Kerala state pollution control board[KSPCB] in the matters related
to air/water consents and forwarding the reports as required to KSPCB
 Coordination with the statutory bodies like AERB, SARCOP, IRE safety committee etc.
including periodical inspections/meetings and the timely feedback or compliance on the
points rose during the inspections/meetings.
 Identifications of training needs of the employees reporting to him
 Secretary of the safety & environmental protection committee.
 Arranging safety & environmental protection committee meetings
The following are the functions of safety & environment department:-
 To ensure that the safe working practices are strictly followed in the plant.

 To ensure compliance to the environmental regulations with regards to norms set by

Kerala state pollution control board and the industry/radiological safety monitoring with
regards to the atomic energy regulations board/director general of mines safety rules.
 To analyze and test the facilities related to the environment monitoring
 The system for maintaining the records and the communication facilities.
The following are the authorities of the section head of safety & environment:
 To stop the work [both internal / contractual in case any lapse in safety requirements are
observed.
Safety equipment:-
 Head protective
 Safety shoes
 Safety Belts & Lifelines
 Dust Respiration
 Eye & Face Protection
 Ear muffs
 Aprons
 Gloves
 Respiratory protection devices
3.3.9STORES AND DESPATCH DEPARTMENT
The stores act as a store and supply chain keeping the inventory of the product produced on
hand and supplying requisite raw materials to the manifold department on the other hand.
All the items in the IRE are properly stored by this function area, including finished product
inventory. It stores furnace oil, machine parts, office equipments and stationary

HOD (SM)
Section Head
(Manager S&D)
Fork lift Stores Product Tally Weigh

Driver personnel stitching & section bridge
handling personnel
Figure No.14: Department structure – Stores &Dispatch
3.3.9. SAFETY & ENVIRONMENT DEPARTMENT
In the prevent day industrial scenario all the industries has accepted the fact that safety
improves productivity. IREL Chavara has always been in the forefront in ensuring safety,
welfare and better working environment to all its employees. Their safety slogan is “Let
everyday be a safe day”
Protection Equipment
 Head protective
 Safety shoes
 Safety belts & lifelines
 Dust respirators
 Eyes & face protection
 Ear muffs
 Aprons
 Gloves
 Respiratory devices

Head of Department
(Safety & Environment)
Section Head Section Head

(Safety & Environment) (Fire Protection)
Safety Personnel
Figure No. 15: Department Structure – Safety & Environment
The Roles of HOD are:-
 Provide necessary feedback to safety and environment department on action taken based
on directory agencies related health, safety & environment.
 Participate in safety and environmental related celebrations and awareness programs.
The Responsibilities of HOD are:-
 Coordination with Kerala State Pollution Control Board (KSPCB) in matters related to
air/water consents forwarding reports or required to KSPCB.
 Safety & environment and fire protection process monitoring and initiation of corrective
actions against environmental deviations and accidents & incidents in co-ordination with
the concerned departments.
 Updating of safety guide & fire protection manual and on site emergency plan
3.3.11. PURCHASE DEPARTMENT
The main function of purchase department is the procurement of materials at competitive

price. All items real materials other than raw sand are purchased by this department, and
purchase all machinery and equipment for the organization. It is important for every
organization.

 Objectives
 To purchase mining land at least cost.
 To purchase new technology equipment.
 Strategy
 Acquiring mining land.
 Negotiation policy
Unit Head
HOD (Purchase)
HOD (Purchase)
Section Head
Purchase Personnel
Fig. 16: Department Structure of Purchase
 Functions
 To scrutinize department requisition.
 To determine likely source of supply.
 To issue enquiries or tenders.
 o receive quotations.
 To tabulate quotations and forward it to intenders and receive back recommendations.
 To issue purchase order or work order.
 To assist vendor evaluation.
 To keep informed the department concerned about the lead time and on all usual.
 Process
Product/ service Timely supply of Team of purchase

from suppliers acceptable product to headed
store

 Formalities of placing an order

 Origination of intent.
 Tender enquiries.
 Opening of tender on the data mentioned.
 Analysis of all tender.
 Technical evaluation of the tender.
 Selection of the best one.
 Negotiation with the party needed.
 Approvalof the selected tender.
 Order placing.
 Following up
 Responsibilities:-
 Arranging for the invitation of tenders.
 Initiating, correcting/preventive action will regarded to purchased product in .
 Arranging spot and emergency purchase.
 Maintenance of records related to purchase process.
 Roles
 Arranging for the invitation of tenders.
 Purchase personnel.
 Contribute towards implementation OH, SMPS and EMP.
 Maintenance of records related to purchase activities.
 Strengths
 Power to change the tender.
 Bargaining power.
 Weaknesses
 Decisions are taken by the head office
 Equipment are not available at domestic market.
3.4. OTHER INDUSTRY RELATED DETAILS
Environment Management System
Based on the significant analysis of activities, products and services that are department wise
including canteen, transport, safety, and environment & medical.
Occupational Health &Safety Management System

Based on hazards &risk analysis of various activities & applicable health & safety
legislations, health and safety objectives and targets, management programs or the control
procedures are identified to control high & medium risk identified.
Quality, Environment, Occupational, Health &Safety Policy
The quality, environment occupation health & safety policy of Indian Rare Earths
Limited,Chavara, as approved the unit head is given below:-
"WE AT IREL, CHAVARA ARE COMMITTED TO SUSTAIN OUR GROWTH IN THE

SUPPLY OF THE BEACH SAND MINERALS & MINERAL PRODUCTS THROUGH",
 Product quality
 Customer satisfaction
 Prevention of pollution
 Conservation of the natural resources
 Compliance with the legal requirements
 Prevention of accidents & ill health
 Safe working environment
 Continual improvement
Rejected products are identified by a tag with a "Rejected" stamp in RED indicating the
rejection memo number with the date & quantity and are kept in a separate area identified by
the "Rejected" board in RED color or in the go down in the case of the larger or the heavier
items. Rejected items will be kept in the stores for a period of one year. The vendor will be
contracted to settle the rejection. If the vendor fails to settle the rejection, even after a period
of 1 year, then actions will be taken to dispose of the rejected items. The items for which the
payment has been made the disposal period of the rejected items is 2 years. This is carried
out in co-ordination with the purchase department.
Finished products of the mineral separation plant [MSP] are also identified by their coloras:-
Illmenite - Dull Black
Rutile - Metallic Black
Leucoxene - Brown
Zircon - Brownish yellow
Sillmanite - Bluish white

Monazite - Greenish yellow
Recovery of minerals:
Ilmenite - 95%
Rutile - 70%
Zircon - 70%
Sillmanite - 70%
Leucoxene - 25%
Products under test - Yellow board
Products after test - Green board
Products after rejection - Red Board
Quality Management System:-
The processes needed for the quality management system [QMS] includes:-
 Manufacturing system
 Marketing system
 Purchase system
 Stores &Dispatch system
 Mining System
 Production [HUP, QIL,MSP, ZOP &Microzir]
 Quality control laboratory system
 Mechanical maintenance system
 Electrical maintenance system
 Civil system
 HRM including training system
 Medical system
 Safety & environmental system


CHAPTER IV

4.1. SWOT ANALYSIS
4.1.1. Strengths
 One of the leading exporters of minerals
 They are constantly making the profit for several years.
 Good industrial relationship.
 Experienced top managers.
 Highly skilled workers & with high morale.
 IREL is having a greater concern of the environment
 Highly skilled managers & experienced workmen having excellent knowledge &
experience about the mining & the production process
 Constant up gradation of technology. Technological collaboration with Australian

company ROCHE, one of the largest minerals technology providers in the world.
 Abundance of raw materials in the company premises itself.
4.1.2 Weaknesses
 Since the company is located away from national highway, so the time & cost for
transportation is greater
 Unavailability of land for the expansion of the unit capacity
 Higher labor charges in India especially in Kerala
 Perennial mining problems
 Excess no. of civil workers
 Promotional activities are less
 Decision making process is highly time consuming & complicated
4.1.3 Opportunities
 The company can start their own plants for the production of various value added products
through diversification
 Being a strategic industry, the company will always have the support from the central
government.

 There's a scope from expanding business area
 High demand for products
 Faster growth rate of markets in the Asian countries where extraction facilities were
limited
 The recent efforts to tie up with the other mining companies like KMML, Chavara.
4.1.4 Threats
 The cost of raw materials are rising
 The inability of employees to adapt rapid technology changes
 The competition in this field is increased day by day
 Over intervention of external political groups in the company affair.
 Protest from the environmental activities
4.2 PORTER'S FIVE FORCE MODEL
4.2.1 Description
Michael Porter's famous Five Forces of Competitive Position model provides a
simple perspective for assessing and analyzing the competitive strength and position of a
corporation or business organization. Michael Porter was born in 1947.
After his earlier work on corporate strategy Porter extended the application of his
ideas and theories to international economies and the competitive positioning of nations, as
featured in his later books.
In 1985 Porter was appointed to President Ronald Reagan's Commission on Industrial
Competitiveness, which marked the widening of his perspective to national economies. By
the 1990's Porter had established a reputation as a strategy guru on the international
speaking circuit second only to Tom Peters, and was among the world's highest earning
academics.
Aside from his innovative thinking, Porter' has a special ability to represent complex
concepts in relatively easily accessible formats, notably his Five Forces model, in which
market factors can be analyzed so as to make a strategic assessment of the competitive
position of a given supplier in a given market. The five forces that Porter suggests drive
competition are
 Existing competitive rivalry between suppliers

 Threat of new market entrants
 Bargaining power of buyers
 Power of suppliers
 Threat of substitute products (including technology change)
Supplier Power
 Supplier concentration
 Importance of volume to supplier
 Differentiation of inputs
 Impact of inputs
 On cost or differentiation
 Switching cost of firms in the industry
 Presence of substitute inputs
 Threat of forward integration
 Cost relative to total purchases in
industry
Barriers to Entry Threat of substitutes

 Absolute cost advantage  Switching cost
 Proprietary learning curve  Buyer inclination to substitute
 Access to input RIVALRY  Price performance
 Capital requirement
 Brand identity
 Switching cost
Buyer power Degree of Rivalry

 Bargaining leverage  Exit barriers
 Buyer volume  Industry concentration
 Buyer information  Fixed cost or value added
 Brand identity  Industry growth
 Price sensitivity  Product differences
 Threat of backward integration  Switching cost
 Product differentiation  Brand identity
 Buyer concentration in the  Diversity of rivals
industry  Corporate states
 Substitutes available
 Buyers incentives
 Rivalry between suppliers

In the traditional economic model, competition among rival firms drives profits to zero. But
competition is not perfect and firms are not unsophisticated passive price takers. Rather,
firms strive for a competitive advantage over their rivals. The intensity of rivalry among

firms varies across industries, and strategic analysts are interested i-n these differences.
Economists measure rivalry by indicators of industry concentration. The Concentration Ratio
(CR) is one such measure. The Bureau of Census periodically reports the CR for major
Standard Industrial Classifications. If rivalry among firms in an industry is low, the industry
is considered to be disciplined. This discipline may result from the industry's history of
competition, the role of a leading firm, or informal compliance with a generally understood
code of conduct. Explicit collusion generally is illegal and not an option; in low-rivalry
industries competitive moves must be constrained informally.
In pursuing an advantage over its rivals, a firm can choose from several
competitive moves:
 Changing prices - raising or lowering prices to gain a temporary advantage.
 Improving product differentiation - improving features, implementing innovations in the
manufacturing process and in the product itself.
 Creatively using channels of distribution - using vertical integration or using a distribution
channel that is novel to the industry. For example, with high-end jewelry stores reluctant
to carry its watches, Timex moved into drugstores and other non-traditional outlets and
cornered the low to mid-price watch market.
The intensity of rivalry is influenced by the following industry characteristics:
 A larger number of firms
 Slow market growth
 High fixed costs
 High storage costs or highly perishable products
 Low switching costs
 Low levels of product differentiation
 Strategic stakes are high
 High exit barriers
 A diversity of rivals
 Industry Shakeout

 Barriers to Entry / Threat of Entry
It is not only incumbent rivals that pose a threat to firms in an industry; the possibility that
new firms may enter the industry also affects competition. In theory, any firm should be able
to enter and exit a market, and if free entry and exit exists, then profits always should be
nominal. In reality, however, industries possess characteristics that protect the high profit
levels of firms in the market and inhibit additional rivals from entering the market. These are
barriers to entry.
Barriers to entry are more than the normal equilibrium adjustments that markets typically
make. For example, when industry profits increase, we would expect additional firms to enter
the market to take advantage of the high profit levels, over time driving down profits for all
firms in the industry. When profits decrease, we would expect some firms to exit the market
thus restoring market equilibrium. Falling prices, or the expectation that future prices will
fall, deters rivals from entering a market. Firms also may be reluctant to enter markets that
are extremely uncertain, especially if entering involves expensive start-up costs. These are
normal accommodations to market conditions. But if firms individually (collective action
would be illegal collusion) keep prices artificially low as a strategy to prevent potential
entrants from entering the market, such entry-deterring pricing establishes a barrier.
Barriers to entry are unique industry characteristics that define the industry. Barriers reduce
the rate of entry of new firms, thus maintaining a level of profits for those already in the
industry. From a strategic perspective, barriers can be created or exploited to enhance a firm's
competitive advantage
 Buyer Power
The power of buyers is the impact that customers have on a producing industry. In general,
when buyer power is strong, the relationship to the producing industry is near to what an
economist terms a monophony - a market in which there are many suppliers and one buyer.
Under such market conditions, the buyer sets the price. In reality few pure monopolies exist,
but frequently there is some asymmetry between a producing industry and buyers.
Buyers are Powerful if
 Buyers are concentrated - there are a few buyers with significant market share
 Buyers purchase a significant proportion of output - distribution of purchases or if the

product is standardized.

 Buyers possess a credible backward integration threat - can threaten to buy producing firm
or rival
Buyers are Weak if
 Producers threaten forward integration - producer can take over own distribution/retailing
 Significant buyer switching costs - products not standardized and buyer cannot easily
switch to another product
 Buyers are fragmented (many, different) - no buyer has any particular influence on
product or price
 Producers supply critical portions of buyers' input - distribution of purchases.
 Supplier Power
A producing industry requires raw materials - labor, components, and other supplies. This
requirement leads to buyer-supplier relationships between the industry and the firms that
provide it the raw materials used to create products. Suppliers, if powerful, can exert an
influence on the producing industry, such as selling raw materials at a high price to capture
some of the industry's profits.
 Threat of Substitutes
To the economist, a threat of substitutes exists when a product's demand is affected by the
price change of a substitute product. A product's price elasticity is affected by substitute
products - as more substitutes become available, the demand becomes more elastic since
customers have more alternatives. A close substitute product constrains the ability of firms in
an industry to raise prices.
The competition engendered by a Threat of Substitute comes from products outside the
industry. The price of aluminum beverage cans is constrained by the price of glass bottles,
steel cans, and plastic containers. These containers are substitutes, yet they are not rivals in
the aluminum can industry. To the manufacturer of automobile tires, tire retreads are a
substitute. Today, new tires are not so expensive that car owners give much consideration to
retreading old tires. But in the trucking industry new tires are expensive and tires must be
replaced often. In the truck tire market, retreading remains a viable substitute industry. In the
disposable diaper industry, cloth diapers are a substitute and their prices constrain the price
of disposables.

4.2.2. Five force analysis of IREL

1. Rivalry between suppliers
 In the current scenario IREL free from rivalry between suppliers.
 As beach sand is the raw material for IREL, there is no chance to dependexternal
suppliers.
 IREL has a mining area of 20 km from Neendakara to Kayamkulam. Andmining is done

by Mining Dept. of IREL.
2. Barriers to Entry / Threat of Entry

 IRE Ltd (IREL), incorporated in the year 1950 at Mumbai and Chavara plant
opened in the year 1970.
 For the last thirty nine years IREL Chavara could make its own demand in the industry.
 Q-grade is considered as first quality in all over the world. . Hence opening barrier is Nil
in the case of IREL.
 Buyer Power
Major buyers are
 Cochin Minerals And Rutile Ltd., Kochi,
 Travancore Titanium Products, Thiruvananthapuram Kilburn Chemicals Ltd.,
TuticorinKolmak Chemicals Ltd., Kolkata,
Because of high requirement of heavy minerals for the buyers IREL can maintain the demand
of its products above bench mark. More and more companies are opened in plastic and paint
industry as the result of globalization. Hence buyer’s power is less, and it is advantage for
IREL.
 Supplier Power
For IREL, the supply of raw material is done by its own mining department.So the influence
external suppliers are nil. Hence supplier power is favorable to IREL,
 Threat of Substitutes
Ilmenite, Rutile, Zircon, Zirflor and Sillmanite are major products of IREL.In these products,
none has any kind of substitutes. Hence the effect of substitute is also favorable to IREL.


CHAPTER V

5.1. FINDINGS
1. The employees were well satisfied with the welfare policies which are in practice and
scale of pay at present. They were provided with the allowances such as uniform
allowance, transportation allowance, production incentives, attendance bonus etc….
2. The intervention by the external political parties continues to be a disturbance in
formulating labor practices.
3. IREL had strong and symbiotic between the top level management and lower level
employees.
4. The company has a strong financial position. The company faced a financial crisis during
the year 2011 and they have recovered in 2012 with a turnover of 17 crores.
5. Constant upgradation of technology. Technological collaboration with Australian
company ROCHE, one of the largest minerals technology providers in the world.
6. IREL had a good support from Government of India and Department of Atomic energy.
7. Since IREL is a monopoly the promotional activities are less and they find prospect
customers through issuing tenders. There are so many private firms who are dealing in
the same industry such as HCL,Essel mining industries (Aditya Birla group) etc…
8. Since the company is located 4Km away from the NH (National Highway) the time
consuming and the transportation cost is very high.
9. Majority of work men were well experienced and possess greater amount of knowledge
particularly related to mining and product procedure.
10. Managers were overloaded with work but they perform well above their expectations.
11. The company has strong commitment towards the society.
12. Since the company comes under central government and atomic department of energy
there is a large scope for expansion

5.2. SUGGESTIONS AND RECOMMENDATIONS
1. IREL should take the advantage of the growing demand for the heavy minerals by
increasing the production.
2. The company can adopt different modeof sales other than the direct sales which is
mainly done in IREL.
3. The government policies can change anytime and so there is a possibility for the entry of
private players. So the company should always be careful to maintain its product quality,
brand equity, and customer relationship.
4. IREL should take advantage for heavy minerals by increasing the production.
5. The management should sustain the faith of the local people by constantly
communicating and explaining the company’s policies to them. The trust of the local
people can be ensured and sustained by constant interaction and communication with
them.The company can achieve this by undertaking more socially responsible activities
in the form of medical facilities, running schools, assistance at the time sea erosion and
trawling ban.
6. They should try to provide water and electricity supply to the local people.
7. The company should take necessary steps to solve the trade union issues and make good
relationship between the employee, employer and the management. The company should
try to minimize the external interventions of various political parties.

5.3. CONCLUSION
IREL, Chavara is the leading supplier of beach sand minerals to the nation. The company, in
its search of new heights, has reached a level of quality which is remarkable. The timely
adaptation of technological innovations has been the hallmark of IRE since its inception. The
study was descriptive and analytical in nature. All the functional departments were
thoroughly studied and the strengths and weaknesses were found out. It was found out that
the employees were satisfied with the welfare policies which are in practice and the scale of
pay at present. The intervention of political parties continued to be a menace. IREL, Chavara
is capable of converting its threats into opportunities with the guidance and control of the top
management whose leadership quality is impeccable. This organization is an epitome of
work culture and indeed a pride of the nation.
IREL is a monopoly industry making use of the natural resources of a particular region. As
more rare earths are extracted and marketed, the supply of rare earths is getting depleted from
the earth's top sphere. It would not be long since it becomes completely extinct. So it is
highly recommended that the natural resources be utilized and processed with utmost care
and concern for the environment.
IREL being a Central Government enterprise lacks - efficiency in packing and marketing and
after sales support. Customers require good sales support. Defects loading to loss of materials
are major problems for the customers. As the cost discount and the credit facilities are based
on quality purchase such industries are not much benefited from IREL market policies.
Prompt delivery and timely action is one area where IREL can put some effort to improve the
percentage scenario.
To improve relationship with their client’s routine seminars and plant visits could help to
cement the client base to the company.

BIBLIOGRAPHY
[1]. Cooper .R. Donald & Schindlefr .S.Pamels (2006), Business Research Methods, New
Delhi, Mc. Graw-Hill.
[2]. Kothari .C.R. (2006), Research Methods, New Delhi, New Age International Pvt. Ltd.
[3]. Malhotra .K. Naresh (2004), Marketing Research, New Delhi, Person Education Pvt.
Ltd.
[4]. Shekharan Uma (2006), Research Methods for Business, New Delhi, Wiley India Pvt.
Ltd.
[5]. Chhabra T.N., Human Resource Management: Concepts and Issues, DhanpatRai&
Co.
[6]. MonappaArun, Industrial Relations, Tata McGraw-Hill Publishing Company Limited,

32nd reprint 2007.
[7]. BediKanishka, Production and Operations Management, Oxford University Press,

Seventh edition.
[8]. Kotler Philip, Armstrong Gary, Principles of Marketing, Prentice Hall of India Private
Limited, 12th edition.
[9]. Chandra Prasanna, Fundamentadls of Financial Management, Tata McGraw-Hill

Publishing Company Limited.
[10]. Pandey I.M, Financial Management, Vikas Publishing House Private Limited, 10th
Edition.
[11]. Department Procedures Manual of IREL
[12]. Apex Manual (Controlled copy)
[13]. Annual Report of IREL.
[14]. www.irel.com
[15]. www.wikipeida.com

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Organization Study of Indian Rare Earth Limited

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CHAPTER I

Marthoma College of Management and Technology 1

IREL is located at 10 Km away north of Kerala and 85 Km from Trivandrum, capital of

Marthoma College of Management and Technology 2

1.2. NEED FOR THE STUDY

1.3. OBJECTIVES OF STUDY

1. To study the functioning of the organization and its various departments.

1.4. RESEARCH METHODOLOGY

Marthoma College of Management and Technology 3

 Audited annual reports

1.5. LIMITATIONS OF THE STUDY

2) There may be errors due to the bias of the respondent.

3) Time is the major limitation in the course of study.

5) The study is limited to my experience and knowledge

Marthoma College of Management and Technology 4

Marthoma College of Management and Technology 5

2.1. INDUSTRY PROFILE

Marthoma College of Management and Technology 7

2.1.2. WORLD SCENARIO

Marthoma College of Management and Technology 8

Country Mine % of production Reserves % of total

Small <1 19.0 19

Table 1: Rare Earth Elements – World Production and Reserves (2009)

2.1.3. INDIAN SCENARIO

Marthoma College of Management and Technology 9

Table No: 2: Resources of Monazite (In million tones)

EXPLORATION & DEVELOPMENT

Marthoma College of Management and Technology 10

 Increase the Ilmenite capacity to reach economic scale of production.

Marthoma College of Management and Technology 11

End Use RE required Present Status Expected(2030)

Ce, La, Mischmetal Huge growth Rate

Eu Mostly imported Huge growing

Pr, Sm, Gd mostly imported Computer hard disks,

Table No: 3. Potential RE Markets

Marthoma College of Management and Technology 12

2.1.4. STATE SCENARIO

2.1.5. CURRENT SCENARIO

India is a developing country so the development of industrialization is the very important

Marthoma College of Management and Technology 13

Marthoma College of Management and Technology 14

2.2.2 STRATEGIC INTENT

 To harness beach sand in an environment & socially responsible manner.

Marthoma College of Management and Technology 15

 To become nationally and globally competitive player in beach sand minerals.

Mineral Division, Corporative & Registered Mineral Division,

Rare Earth Division,

Figure No. 1: CORPORATE STRCUTURE OF IREL

Marthoma College of Management and Technology 16

BOARD OF DIRECTORS OF IREL

Dr. R.N PATRA Chairman and Managing Director

SHRI D. SINGH Director (Marketing) IREL

SHRI C.K ASNANI Director (Technical) IREL

Dr C.B.S VENKATARAMANA Joint Secretary Department Of Atomic

SHRI K.N JAYARAJ Chief Executive Nuclear Fuel Complex

SHRI ALKESH KUMAR SHARMA IAS

Dr. D CHANDRSEKHARAM Professor of Geology

Table No. 4: List of Board of Directors

2.3 PRODUCT PROFILE

According to Alderson, “Product is a bundle of utilities consisting of various product

Marthoma College of Management and Technology 17

Rare Earth Chloride

Rare Earth Fluoride