Arjun Internship Report

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A Study on Project Management at Hindustan

Insecticides Limited, Cochin
Technical Report · June 2015

DOI: 10.13140/RG.2.1.4326.0561
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Bangalore
Project Management
Study on
Retrofitting of Endosulfan plant for the manufacturing of Glyphosate

&
Mancozeb plant Capacity Expansion.
At
Hindustan Insecticides Limited, Cochin
Submitted by
Arjun Ajit
Registration No:
14010121010
Under the Guidance of

Mr. Ganapathyraman .K
Dy. Manager (Projects), Hindustan Insecticides Limited
&
Prof. Ellur Anand
Asst. Professor, Alliance University
In partial fulfilment of the Course- Industry Internship Programme-IIP

in Semester II of the Master of Business Administration (Batch of 2014-2016)
Master of Business Administration
Industry Internship Programme (IIP)
Declaration
This is to declare that the Report titled “Project Management Study on Retrofitting of
Endosulfan plant for the manufacturing of Glyphosate & Mancozeb plant Capacity
Expansion.” has been made for the partial fulfilment of the Course: Industry Internship
Programme (IIP) in Semester II by me at Hindustan Insecticides Limited, Udyogamandal
under the guidance of Mr. Ganapathyraman K & Prof. Ellur Anand
I confirm that this Report truly represents my work undertaken as a part of my Industry
Internship Programme (IIP). This work is not a replication of work done previously by any
other person. I also confirm that the contents of the report and the views contained therein
have been discussed and deliberated with the faculty guide.
Signature of the Student :
Name of the Student : ARJUN AJIT
Registration No : 14010121010
Master of Business Administration
Certificate
This is to certify that Mr. ARJUN AJIT, Registration No. 14010121010 has completed the
report titled “Project Management Study on Retrofitting of Endosulfan plant for the
manufacturing of Glyphosate & Mancozeb plant Capacity Expansion.” Under my
guidance for the partial fulfilment of the Course: Industry Internship Programme (IIP) in
Semester II of the Master of Business Administration.
Signature of Faculty Guide:
Name of the Faculty Guide: Prof. Ellur Anand

Acknowledgment
The internship opportunity I had with Hindustan Insecticides Limited was a great chance for
learning. Therefore, I consider myself as a very lucky individual as I was provided with an
opportunity to be a part of it. I am also grateful for having a chance to meet so many
wonderful people and professionals who led me though this internship period.
I am using this opportunity to express my deepest gratitude and special thanks to

Mr. K. Ganapathyraman, Dy. Manager(Projects), Hindustan Insecticides Limited, who in
spite of being extraordinarily busy with his duties, took time out to hear, guide and keep me
on the correct path and allowing me to carry out my Internship project at their esteemed
organization.
I express my deepest thanks to Prof. Ellur Anand, Asst. Professor, Alliance University for
taking part in useful decision & giving necessary advices and guidance. I choose this moment
to acknowledge his contribution gratefully.
It is my radiant sentiment to place on record my deepest sense of gratitude to Mr. Sebastine

Mathew ( Engineering Manager), Ms. S Vijayalakshimi (Training and Development In-
charge) Mr. Vijayan G (Dy.Chemical Engineer), Mr. M.C Salikunju (Dy. Engineering
Manager), Mr. Shivasankaradu (Asst. Plant Manager), Paul Thachil (Commercial
Manager), Praveen P (Assistant Engineer (Chemical)), Dr. V. Babu (Development Chemist
(R&D)) from Hindustan Insecticides Limited, Udyogamandal for their careful and
precious guidance which were extremely valuable for my study both theoretically and
practically.
Lastly, I thank almighty and my parents, for their constant encouragement without which this
report would not be possible.
I perceive this opportunity as a big milestone in my career development.

Hope to continue cooperation with all of you in the future.
Arjun Ajit
TABLE OF CONTENTS
Index Content Page

Number
Executive Summary 1
1 INTRODUCTION & INDUSTRY OVERVIEW 2

1.1 Introduction 3
1.2 Industry Overview 4
1.3 Structure of Agro-chemical Industry 5
1.4 Global scenario 6
1.5 Indian Scenario 8
1.6 Market Share of Companies in Indian Agro-Chemical Industry 13
2 COMPANY OVERVIEW 14
2.1 Hindustan Insecticides Limited (H.I.L) 15

2.2 Vision 17
2.3 Products offered by Hindustan Insecticides Limited (H.I.L) 18
2.4 Organisation Structure of Hindustan Insecticides Limited 19
2.5 SWOT Analysis on Hindustan Insecticides Limited 20
2.6 Porters Five Force Analysis on Hindustan Insecticides Limited 21
3 PROJECT PROFILE 23
3.1 Objective 24
3.2 Methodology 24
3.3.1 Project 1: Retrofitting of Endosulphan Plant for the manufacturing of 25
Glyphosate.
3.3.2 Project 2: Mancozeb Plant capacity expansion 26
4 OBSERVATIONS AND ANALYSIS 27
4.1.1 Observations on Project 1: 28

4.1.2 Profitability Calculation of Glyphosate Tech. per MT 30
4.1.3 Detailed breakup cost for Project 1 31
4.1.4 Project Initiation. 32
4.1.5 Gantt Chart Diagram for Project 1 34
4.1.6 Network Diagram for Project 1 35
4.2.1 Observations on Project 2: 36

Mancozeb Plant Capacity Expansion
4.2.2 Cycle Time comparison 38
4.2.3 Detailed breakup cost for Project 2 39
4.2.4 Cost of production for 1 MT of Mancozeb 40
4.2.5 Project Initiation. 41
4.2.6 Gantt Chart Diagram for Project 2 43
4.2.7 Network Diagram for Project 2 44
Index Content Page
Number
5 FINDINGS 45
5.1. Findings for Project 1: 46

5.1.1 Finding Profitability or Viability of Project 1 46
5.1.2 Finding from Gantt Chart for Project 1 47
5.2 Findings for Project 2: 48

Mancozeb Plant Capacity expansion
5.2.1 Finding Profitability or Viability of Project 2 48
5.2.2 Breakeven Analysis for Capacity Expansion Project 49
5.2.3 Takt Time Analysis 50
5.2.4 Findings from Gantt Chart for Project 2 52
6 RECOMMENDATIONS 53
6.1 Recommendations 54
7 CONCLUSION 55
7.1 Conclusion 56
7.2 Learning Outcomes 57
7.3 References 58
FIGURE INDEX
Sl No. Fig. No. Figure Name Page

No.
1 1.4.1 Leading Trading countries in Agro Chemical Industry, FY 2012 7
2 1.5.1 Comparison on countries for Consumption of Crop protection 8
product
3 1.5.1 Distribution of domestic crop protection market - Product 9
category
4 2.1 Phases of India during Malaria eradication Program 16
5 2.4 Organisation Structure of Hindustan Insecticides Limited 19
6 4.1.1 Glyphosate Manufacturing Process Flow Diagram 28
7 4.1.5 Gantt Chart for Project: Retrofitting of Endosulfan plant for the 34
manufacturing of Glyphosate
8 4.1.6 Network Diagram for Project: Retrofitting of Endosulfan plant 35
for the manufacturing of Glyphosate
9 4.2.1 Flow diagram of Mancozeb manufacturing Plant 37
10 4.2.2 Cycle Time comparison of process on Existing Plant and 38
Upgraded Mancozeb plant.
11 4.2.6 Gantt Chart Diagram for Project: Mancozeb Plant Capacity 43
Expansion
12 4.2.7 Network Diagram for Project : Mancozeb Plant Capacity 44
Expansion
13 5.2.2 Breakeven Analysis for Capacity Expansion Project 49

14 5.2.3.a Takt Time Analysis for Existing Mancozeb Plant 50
15 5.2.3.b Takt Time Analysis for Upgraded Mancozeb Plant 51
TABLE INDEX
Sl No. Table Table Name Page No.

No.
1 1.5.2 2013- Indian Herbicides Market Estimate 10
2 1.5.2 2013 - Indian Fungicides Market Estimate 11
3 1.5.3 2013- Indian Insecticides Market Estimate 12
4 1.6 Market Share of Companies in Indian Agro-Chemical 13
Industry
5 2.3 Products offered by Hindustan Insecticides Limited (H.I.L) 18
6 4.1.2 Cost for Producing 1 MT of Glyphosate 30
7 4.1.3 Detailed breakup cost including all the required Equipments 31
for Project : Retrofitting of Endosulfan plant for the
8 4.2.3 Detailed breakup cost including all the required equipments 39
for Project:
9 4.2.4 Cost of production for 1 MT of Mancozeb 40
10 5.1.2 Finding from Gantt Chart: Project 1: Retrofitting of 47
Endosulfan plant for the manufacturing of Glyphosate
11 5.2.4 Findings from Gantt Chart :Project 2: Mancozeb Plant 52
Capacity Expansion
Industry Internship Program Report, M.B.A 2014 - 2016 -1-
Executive Summary
This report is a study on two Projects progressing inside Hindustan Insecticides Limited (H.I.L).
Projects are Analysed using Project Management techniques.
A detailed picture about the projects is presented in this report.
The First chapter of this report is an introduction about the industry followed by
Industry Overview on Agro Chemical Industry. This chapter include, Global and Indian scenario,
Structure of industry, Players in the industry and their Market shares.
Second Chapter is about the company, Hindustan Insecticides Limited, here a detailed description
about the company and their Vision, Mission, Various Products they produce, Organization
Structure, SWOT Analysis, Porters 5 Force Analysis and Market share of company are presented.
Third chapter. Project Profile, presents the need and benefit of the project for the company,
Hindustan Insecticides Limited.
Project 1: Retrofitting of Endosulfan plant for the manufacturing of Glyphosate
Project 2: Mancozeb plant capacity expansion, are presented
In the Fourth Chapter, Observation & Analysis, a detailed description and Analysis about the
Projects progressing inside the company is presented.
Findings and results of Analysis on the projects are presented in Chapter Five - Findings.
Finally Conclusion, Recommendations and Learning Outcomes are presented.
References for making the report are presented at the end of report.
Alliance School Of Business, Alliance University, Bangalore

Chapter 1
INTRODUCTION
&
INDUSTRY OVERVIEW

1.1 Introduction
World population is expected to increase by 250,000 every day and reach 9 billion by 2050,
according to the United Nations. That means there are 9 billion stomachs to feed. Survival of
mankind depends on Food or say agriculture. Agrochemicals protect crops against diseases, pests and
weeds, thus ensuring a good harvest and plenty of food. Consumers expect the food they buy to be
fresh, of high quality and free from disease, moulds and insect damage.
Even when using crop protection products, an average of 20 to 40% of the harvest is lost due to
diseases and pests. This creates uncertainty and tensions for the farmers. Agrochemical while usage
must be safe to humans and domestic animals. There should be no danger to spray workers,
inhabitants or animals accidentally contaminated with the insecticide during or after spraying. But the
sad truth is, the end user (farmers/ large scale agricultural producers) often neglects it.
Also with due course of time, target insects develop resistance to the pesticides and thus
agrochemical may lose their effectiveness. If resistance is observed, another insecticide without
cross-resistance has to be used. Agrochemical manufacturing companies therefore needs to invest for
R&D and build new products. Hindustan Insecticides Limited, A government of India Enterprise has
initiated with projects for Manufacture of Glyphosate (Weedicide) and Expanding the capacity of
existing Mancozeb (Fungicide) manufacturing plant at their Udyogamandal, Unit.
Project Management is an inevitable part for existence of any Organization. Proper Planning,
Budgeting, Scheduling, Resource allocation, Team management, Issue management skills are
required for managing a project successfully. This report contains a Project management study and
analysis on Projects: “Retrofitting of Endosulfan plant for the manufacturing of Glyphosate” and
“Mancozeb plant capacity expansion” at Hindustan Insecticides Limited, Udyogamandal Unit.

1.2 Industry Overview
Pesticides, also referred to as Agro–chemicals, are chemical compounds used for increasing
agricultural production by protecting crops from insects, pests, plant diseases and weeds.
Agrochemicals are substances manufactured through chemical or biochemical processes containing
the active ingredient in a definite concentration along with other materials which improve its
performance
and increase safety. For application, these are diluted with water in recommended doses and
applied on seeds, soil, irrigation water and crops to prevent the damages from pests.
There are broadly 5 categories of crop protection products:
Insecticides: Insecticides protect crops by killing insects or preventing their attack.

Insecticides may attack a particular type of insect or could be broad spectrum insecticides.
Insecticides are used to manage the pest population below the economic threshold
level.E.g.Chlorpyrifos is used to control insect pests in crops such as cotton, corn almonds,
etc.
Fungicides: They are used to prevent the deterioration of crops due to fungi infestation.
Fungicides are classified as protectants or eradicants. Protectant fungicides prevent or
inhibit fungal growth and may have to be applied at regular intervals. Eradicant fungicides
kill the pests on application. E.g.Anilazine is used to control fungal attack on lawns and
turfs, cereals, coffee and various vegetables and other crops.
Herbicides: Herbicides or weedicides are used to prevent the growth of unwanted plants in
a crop field. Herbicides could be selective, which kill the unwanted plants without any harm
to the crop, or non-selective which kill all the plants. E.g. Glufosinate ammonium, a broadspectrum
contact herbicide, is used to control weeds after the crop emerges or for total
vegetation control on land not used for cultivation.
Bio-pesticides: These are derived from natural substances like plants, animals, bacteria
and certain minerals and control pests by nontoxic mechanisms. Bio-pesticides are
considered eco-friendly and easy to use. They could be classified as microbial pesticides,
plant incorporated protectants and biological pesticides. They are of low volume and high
effect formulations and require lesser dosages as compared to chemical pesticides. A
growth area for bio-pesticides is in the area of seed treatment and soil amendments.
Example of bio-pesticides includes Bacillus subtilis which is used as soil inoculant in
horticulture and agriculture.
Others (Nematocides, Rodenticides etc.): Fumigants and rodenticides are used to prevent
the attack of pests during storage of crops. Plant growth regulators control or modify the
plant growth process and are most commonly used in cotton, rice and fruits.

1.3 Structure of Agro-chemical Industry
Multinational companies, Large Indian companies in the public and private sector
and the Small sector units comprise the industry. There are around ten Multi–
national companies, 57 medium and large companies and over 400 small units
engaged in the manufacturing of pesticide formulations. The central public sector unit
producing pesticides is Hindustan Insecticides Limited.
These crop protection chemicals are manufactured as technical grades and converted into
formulations for Agricultural use.
The Agrochemical industry consists of Raw material supplier, Technical grade manufacturers,
Formulators producing the end products, Distributors, Retailers and End user customers.
In India, there are about 125 technical grade manufacturers (10 multinationals), 800 formulators, over
1,45,000 distributors. 60 technical grade pesticides are being manufactured indigenously.
India ranks fourth position as a supplier of agrochemicals in the global market, after USA, Japan and
China thereby indicates the significance of agrochemical industries in India. From a modest
beginning in 1947, when DDT production started, was first used for malaria control in India, and now
Indian agrochemical industry consumption in India has grown to a total market size of over $ 4.25
billion in FY14 of which 50 per cent are exports.
The consumption of agrochemicals in India is surprisingly low (0.58 kg/hectare) as compared to USA
where the consumption of agrochemicals is as high as 4.5 kg/hectare and Japan with an even higher
consumption of 11 kg/hectare.

1.4 Global scenario
The global crop protection market is fairly consolidated with top nine companies accounting for over
80% of the market. Syngenta, Bayer and BASF are the market leaders in the global crop protection
market.
Global crop protection market is characterized by large number of mergers and acquisitions in the
recent years. Several large companies have consolidated their presence in the existing
geographies or ventured into newerareas through acquisitions of local companies. Some of the recent
acquisitions in 2013 include acquisition of ISEM's fungicide technologies valifenalate by Belchim
Crop Protection, acquisition of Alpha Pesticides (Britain) by De Sangosse Group's and acquisition of
Plant Syence by Verdesian Life Sciences. Another major acquisition happened in 2011 when United
Phosphorus Limited acquired 51% stake in Brazil based DVA Agro Do BrasilfromIsagro (Italy) to
consolidate its presence in distinguished Brazilian Market Distribution of global crop protection
market – Product Category
Herbicides are the most widely used agrochemical products globally, followed by insecticides
and fungicides.
Fungicides is the highest growing segments as it helps increasing yield,
improving quality and in seed treatment. Individual sales of various categories however depend on
climatic conditions and crop variance.
Herbicides are used in most of the regions of the world. However, major markets for herbicides are
North America and Europe due to the favourable climatic conditions in these regions.
Insecticides are more prevalent in Asian countries. This is due to higher growth of cotton, cereal,
fruits and vegetables in these regions which have higher incidence of insect attacks.
Fungicides are used in almost all agriculture markets of the world due to favourable climatic
conditions for the fungal growth.

1.4.1 Global Trade of crop protection products
Germany, France, US, China and Belgium are the largest exporters of crop protection products
while Brazil, Canada, United Kingdom, Italy and Spain are the major importers.
Leading Trading countries in Agro Chemical Industry, FY 2012

Fig: 1.4.1
Source: TATA Strategic Report on Indian Agrochemicals Industry
1.4.2 Global Industry Challenges
Evolution of biotechnology:
Development of genetically modified crops in recent years, especially for pest resistance would result
in relatively lesser need for traditional crop protection chemicals. However, this could lead to newer
strains or pests driving need for other agrochemicals. E.g. new sucking pests have emerged causing
significant harm to the BT cotton.
Stringent regulations
Stringent environmental regulations across all countries increase the cost of developing new
products. These regulations are primarily affecting the older products while at the same time resulting
in delay in introduction of new products.
Mergers and Acquisitions affecting SMEs:

Larger companies are acquiring/ entering into strategic alliances with smaller companies to increase
their market reach. This poses a threat to local companies who are forced to reduce prices in order to
compete, thereby leading to lower margins.

1.5 Indian Scenario
India due to its inherent strength of low-cost manufacturing and qualified low-cost manpower is a net
exporter of pesticides to countries such as USA and some European and African countries.
Exports formed ~50% of total industry turnover in FY12. The industry suffers from high inventory
(owing to seasonal and irregular demand on account of monsoons) and long credit periods to farmers,
thus making operations 'working capital intensive.
Domestic consumption
Consumption of crop protection products in India is among the lowest in the world. Per capita
consumption of crop protection products in India is 0.6 kg/ha compared to 13 kg/ha in China and 7
kg/ha in USA. Some of the reasons for low consumption in India are low purchasing power of
farmers, lack of awareness among farmers, limited reach and lower accessibility of products. This
presents an immense opportunity for the crop protection industry to grow in India.
Comparison on countries for Consumption of Crop protection product

Fig: 1.5.1

1.5.1 Distribution of domestic crop protection market - Product category
Insecticides form the largest segment of the domestic crop protection chemicals market
accounting for 65% of the total market. It is mostly dependent on rice and cotton crops.
Herbicides are the largest growing segment and currently account for 16% of the total crop
protection chemicals market. Sales are seasonal, owing to the fact that weeds flourish in damp, warm
weather and die in cold spells. Rice and wheat crops consume the major share of
Herbicides. Increasing cost of farm labour will drive sales of herbicides going forward. Fungicides,
accounting for 15% of the total crop protection market, are used for fruits and vegetables and rice
Farmers moving from cash crops to fruits and vegetables and government support for exports are
increasing the fungicides usage. Bio-pesticides include all biological materials organisms, which can
be used to control pests. Currently a small segment, bio -pesticides market is expected to grow in the
future owing to government support and increasing awareness about use of non-toxic, environment
friendly pesticides.
Distribution of domestic crop protection market - Product category

Fig: 1.5.1

Industry Internship Program Report, M.B.A 2014 - 2016 - 10 -
1.5.2 2013- Indian Herbicides Market Estimate
Value (Rs.
Sl. Volume Mio) at % Share of the
No Top 15 Herbicides (Kl/MT) NRV Molecule
1 Imazethapyr 10 SL 2200 3190 12
2 Clodinofop 15 WP 10000 2900 11
3 Glyphosate 42 SL 8000 2240 8
4 Pretilachlor 50 EC 5000 1875 7
5 Bispyribac Sodium 10 SC 300 1680 6
6 Pendimethalin 30 EC 4000 1240 5
7 Metribuzin 70 WP 1000 1100 4
8 Glyphosate 71% WDG 2000 1000 4
9 Paraquat 24 SL 4000 900 3
10 Quaizalofop ehtyle 5 EC 800 800 3
11 Oxyflurfen 235 EC 500 600 2
Imazethapyr 35 + Imazamox 35
12 WG 40 500 2
13 Sulfosulfuron 75%WDG 2000 500 2
14 Fenoxaprop p-ethyl 9.3 % EC 500 495 2
15 Chlorimuron ethyl 5% WP 3000 450 2
2013- Indian Herbicides Market Estimate

Table: 1.5.2
Source: KAGASHIN Group report on Indian Agrochemical Industry

1.5.3 2013 - Indian Fungicides Market Estimate
Volume Value (Rs. % Share of

Sl. No Top 15 Fungicides (Kl/ MT) Mio) at NRV the Molecule
1 Tricyclazole 75 WP 2000 2100 8
2 Propiconazole 25% EC 2500 1875 8
3 Mancozeb 75 WP 6000 1560 6
4 Copper Oxychloride 50 WP 4000 1520 6
Carbendazim12% + Mancozeb 3%
5 WP 3500 1295 5
6 Hexaconazole 5 SC 4000 1240 5
7 Carbendaziim 50 WP 3000 1050 4
8 Azoxystrobin 23 SC 200 1000 4
9 Hexaconazole 5 EC 3500 875 4
10 Copper Hydroxide 50 WP (77% WP) 1000 700 3
11 Fenamidone 10 + Mancozeb 60 WG) 500 700 3
12 Chlorothalonil 75 WP 750 563 2
13 Dimethormorph 50% WP 150 435 2
14 Propine 70 WP 800 328 1
15 Kresoxim-Methyle 44.3% SC 300 100 1
2013- Indian Fungicides Market Estimate
Table: 1.5.3

1.5.4 2013- Indian Insecticides Market Estimate
Sl. Volume Value (Rs.Mio) at % Share of

No Top 15 Insecticides (Kl/MT) NRV the Molecule
1 Acephate 75 SP 20000 7800 13
2 Imidacloprid 17.8 SL 4000 4800 8
Chlorantraniliprole 18.5%
3 Coragen-20 S) 350 3850 6
4 Buprofezin 25 SC 4000 3000 5
Flubendiamide 39.35
5 SC(Fame 48 SC) 200 2720 5
6 Cartap 4 G 50000 2500 4
7 Monocrotophos 36 SC 7500 2438 4
8 Emamectin Benzoate 5% SG 500 2150 4
9 Acetamiprid 20 SP 2000 2100 4
10 Chlorpyriphos 20 EC 10000 2000 3
11 Thiamethoxam 25 WG 1500 1875 3
12 Diafenthiuron 50 WP 700 1540 3
13 Triazophos 40 EC 4000 1360 2
14 profenophos 50 EC 3000 1290 2
15 Imidacloprid 70% WG 250 1050 2
2013- Indian Insecticides Market Estimate

Table: 1.5.4

1.6 Market Share of Companies in Indian Agro-Chemical Industry
Company Name Net Sales in Rs. Market Share in

Cr. Percentage
Bayer CropScien 3,245.20 11.93
PI Industries 1,594.92 5.86
Rallis India 1,518.47 5.58
Excel Crop Care 965.6 3.55
Meghmani Organi 893.28 3.28
Insecticides 864.08 3.18
Dhanuka Agritec 738.41 2.71
Nagarjuna Agric 635.84 2.34
Monsanto India 581.84 2.14
Sharda Crop 532.13 1.96
Excel 416.92 1.53
Hindustan Insecticides Limited 330.35 1.21
Bhagiradh Chem 173.01 0.64
Camson Bio Tech 145.63 0.54
Aimco Pesticide 140.5 0.52
Paushak Ltd 56.33 0.21
ASIS Logistics 37.24 0.14
Phyto Chem 30.94 0.11
R J Bio-Tech 28.68 0.11
Kilpest (I) 20.99 0.08
Syschem India 18.41 0.07
Other Small and Medium Scale 14,231.23 52.32
Companies
Total 27,200.00 100.00%

Market Share of Companies in Indian Agro-Chemical Industry
Table: 1.6
Source: Economic times news report, Moneycontrol.com & H.I.L Annual Report 2014

Chapter 2
COMPANY OVERVIEW

2.1 Hindustan Insecticides Limited (H.I.L)
Hindustan Insecticides Limited was incorporated in 1954 for manufacture of DDT for the control of
malaria and has played a pivotal role in improving the rural health of India. “Malaria is a disease
that has afflicted humans for more than 10,000 years” (Frederick L. Dunn 2003), “today infects some
300 million people and kills 1 million each year” (Jeffrey D. Sachs 2001). Many argue that
improving health, while important in itself, can also lead to higher economic growth and
development. John Luke Gallup and Sachs (2001) show that falciparum malaria endemicity is
negatively correlated with economic growth for a country
DDT was first used in India by the military in 1944 and became available for civilian anti-malaria
operations in 1945. India had to import DDT from foreign countries at that time. Successful pilot
programs in the late 1940s led the National Planning Commission to endorse the development of a
comprehensive, nationwide program, and the National Malaria Control Program (NMCP) was
launched in April of 1953. The timing of the program is plausibly exogenous, since it was driven by
the advent of DDT. Prior to the eradication program, malaria was considered the greatest health
problem facing India. Survey evidence estimates that immediately after partition in 1947, India
suffered from 75 million cases of malaria per year (double during epidemic years), and 800,000
deaths were directly attributable to malaria annually.
After since Hindustan Insecticides Limited started production of DDT, the 75 million reported cases
of malaria per year, have come down to 2 million annually in 2001, thereby saving not only the
precious lives and huge spend on the health budget, but also improving the financial health of the
rural poor as malaria also results in loss of wages due to absence of work, reduced productivity.
Figure 1 illustrates the rapid geographic expansion of coverage as districts were phased into the
program. Once a district was incorporated into the program, it remained in the program in all
subsequent years.

Phases of India during Malaria Eradication Program

Fig: 2.1
Source: Malaria Eradication in India| American Economic Journal
The success India could achieve in control of malaria due to effective use of DDT had been well
appreciated in the public health circles globally.
Hindustan Insecticides Limited continues to be the sole supplier of DDT for the National Vector
Borne Disease Control Programme of Ministry of Health, Govt. of India and has earned a name as a
dependable quality supplier.
Expanding the social commitment perspective beyond the national boundaries, HIL decided to focus
in Africa where every second a child dies due to malaria. With a renewed focus on DDT as the most

effective tool in the fight against malaria, which is endorsed by WHO, with more and more countries
in Africa choosing to switch back to DDT, HIL finds a great potential and has positioned itself as a
global DDT supplier. In the year 2007-08, Hindustan Insecticides Limited started exporting DDT to
countries like Mozambique, Gambia, etc.
HIL has been exporting its agro products to a number of countries such as Netherland, UK, Jamaica,
UAE, Manila, S.Korea, Belgium, Guatemala, France, Germany, Argentina, Ethiopia, Egypt, Spain,
etc. for the last more than a decade and its products are well-accepted in the world market. Company
has a wide network of marketing throughout the country through its six Regional Sales Offices and
good number of dealers. The company has three manufacturing units located at Udyogamandal, near
Kochi (Southern India), Rasayani near Mumbai(Western India) and Bathinda in Punjab (Northern
India). The company also has a Research & Development complex including an experimental farm at
Gurgaon in Haryana.
Currently in FY2014-2015, HIL hold 1.2 % market share in Indian Agro Chemical Industry.
HIL has 100% global market share in Manufacturing DDT and Dicofol.
HIL has also played an important role in improving the agricultural productivity of India. In spite of
difficulties and challenges like fragmented land holdings (86% of farms less than an acre), limited
access to credit, extension, infrastructure and markets, India has become the second largest food
producer in the world. India is also the second largest producer for many principal food crops like
rice, wheat, etc. but suffers a crop loss of about Rs. 1,40,000 crores/year and judicious use of
pesticides can control this to a very great extent. China whose population size is comparable to India
produces 500 million tonnes of food grains though they have lesser agricultural land than India.
2.2 Vision
The vision of the company is to become a leading player in the field of public health and crop care.
Though, HIL was incorporated for manufacturing of DDT for control of Malaria and has contributed
perhaps more than any other Public Sector Undertaking to improve the rural health, company is also
looking at development of alternatives to DDT and has tied up with a leading Institution of the
country, and the progress of their work is regularly being monitored by the Company board of
directors.

2.3 Products offered by Hindustan Insecticides Limited (H.I.L)
TECHNICAL NAME TRADE NAME

Acephate 75 SP HILPHATE 75 SP
Alephacypermethrin 10 EC HILALPHA 10EC
Bacillus Thuringiencis Var. israelensis HIL BTI
Bacillus Thuringiencis Var. kurstaki HILBTK
Buprofezin 25 SC HILBLAZE 25SC
Cartap Hydrochloride 50 SP HILCARTAP 50 SP
Chlorpyrifos 2% RTU Chlorpyrifos 2% RTU
Chlorpyrifos 20 EC HILBAN 20 EC
Copper Oxychloride - Technical Copper Oxychloride - Technical
Copper Oxychloride – 56 DP Copper Oxychloride – 56 DP
Copper Oxychloride 50 WP HILCOPPER 50 WP
Cypermethrin 25 EC HILCYPERIN 25 EC
Cypermethrin 25 EC HILCYPERIN 25 EC
DDT 50 WP HILDIT 50 WP
DDT 75 WP DDT 75 WP
DDT Technical DDT Technical
Deltamethrin 2.8 EC Deltamethrin 2.8 EC
Dicofol 18.5 EC HILFOL 18.5 EC
Dicofol Technical Dicofol Technical
Diflubenziron 25 WP HILMIIN 25 WP
Etheephon 39 SL Etheephon 39 SL
Ethion 50 EC HILMITE 50 EC
Fenvalerate 20 EC HILFEN 20 EC
Glyphosate 41 SL TRINNASHSHI 41 SL
Hexaconazole 5 EC HILZOLE 5 EC
Imidachloprid 70 WS HILMIDA 70 WS
Malathion 50 EC HILMALA 50 EC
Mancozeb 63% Carbendazim 12% WP HILPUNCH
Mancozeb 64% + Maetalaxyl 8 % WP HILMIL
Mancozeb 75 WP HILTHANE M-45
Mancozeb 80 WP Mancozeb 80 WP
Mancozeb Technical Mancozeb Technical
Monocrotofos 36 SL HILCRON 36 SL
Oxycarboxin 20 EC Oxycarboxin 20 EC
Phorate 10 CG HILPHORATE 10 CG
Phosphamidon 85 SL HAWK 85 SL
Phosphamidon 40 SL Phosphamidon 40 SL
Profenofos 50 EC HILFOS 50 EC
Quinalphos 25 EC HILQUIN 25 EC
Sulphuur 80 WDG HILSULF 80 WDG
Thiophanate- Methyke 70 WP HILNATE 70 WP
Certified Seed (Under H.I.L brand name)

Products offered by Hindustan Insecticides Limited (H.I.L)
Table: 2.3
Source: H.I.L, R&D Department

2.4 Organisation Structure of Hindustan Insecticides Limited
Organisation Structure of Hindustan Insecticides Limited

Fig: 2.4
Source: H.I.L, Personnel Department
CMD – Chairman and Managing Director

DM – Director (Marketing)
D(F)- Director Finance
GM- General Manager
DGM- Dy. General Manger
MTS- Manager Technical Service
Sr. MO- Sr. Medical Officer
DEM- Dy. Engineering Manager
DEM(S) Dy. Engineering Manager (Safety)
Production Commercial Personal & Administrative

AM(I)- Asst. Manger(Inst.) CM-Commercial Manager PEM- Personal Manger
EE- Electrical Engineer DMP- Dy. Personal Manager
ME- Mechanical Engineer PO- Personal Officer
AE(E)- Asst. Engineer(Elect) WO-Welfare Officer
AE(I)- Asst. Engineer(Inst.) APO- Asst. Personal Officer
AE(C)-Asst. Engineer(Civil) A.Ad.O- Asst. Administrative
Officer
MS-Maintenance Supervisor AO(W)- Asst. Officer(Welfare)
AHO-Asst. Hindi Officer

2.5 SWOT Analysis on Hindustan Insecticides Limited
Strength:
 Goodwill for providing quality products
 Consideration from the government because of being Public sector undertaking firm.
 Availability of very large number of distributors, as close to 1 Lakh distributors in the
country, even at various Taluk levels.
An average company in the industry would have only 40-50 thousand distributors available.
Weakness
 Less capital investments for R&D
 Not cost effective manufacturing when compared to competitors
 Less number of Human resources.
Opportunity
 The herbicide and fungicide Products Company is manufacturing are of high demand in
Global and Indian market. Therefore increase the capacity of plant and plan for more export.
 Genetically Modified (GM) seeds production or marketing of quality seeds tends to have a
good scope. And also can widen company‟s product portfolio.
Threats
 Threat from Genetically Modified (GM) seeds as they have immunity towards pesticides.
 Competitors trying to penetrate into the market

2.6 Porters Five Force Analysis on Hindustan Insecticides Limited
1. Degree of Rivalry
HIL, as it is owned by the central government of India, they sell their product in a standard low price,
and thereby they seal the price of that specific product in the whole market so that other players
wouldn‟t increase the price of it beyond HIL‟s price.
Customer base often gets lured by the dealer technique of „push sales‟, therefore the margins of
generics are shrinking for quality producers like HIL.
2 . Bargaining power of Suppliers
Suppliers at HIL Bargaining power
1. Specialized equipment High
2. Labour and Construction contractors Low
3. Electrical suppliers Low
4. Spare parts Medium
5. Chemical raw materials- Medium
6. Civil Consultants- Medium
7. ERP High

3. Bargaining power of customers
Customers usually don‟t have much bargaining power. But there are many players in Agro-Chemical
industry. Hence customer can switch the product brand any time.
4. Threat of Substitutes
Threat from Genetically Modified Seeds.
5. Threat of New entrant

There are Low entry barriers to enter in Agro-Chemical industry as there are around ten multi–
national companies, 57 medium and large companies and over 400 small units
engaged in the manufacturing of pesticide formulations.

Chapter 3
PROJECT PROFILE
 Project 1: Retrofitting of Endosulfan Plant for the Manufacturing of
Glyphosate
 Project 2: Mancozeb Plant Capacity Expansion

3.1 Objective
 The objective of this Report is to study on Project management techniques adopted by the
company officials at Hindustan Insecticides Limited, Udyogamandal unit on their projects.

Project 2: Mancozeb plant capacity expansion
 To Study the practical nature of project.

 To study the need for Project in the Organization
 To study the Feasibility and Profitability of the project
 To find the payback period on capital invested for Project
 To Track the project flow and project status
 To Analyse the Takt time for Upgraded and Existing Mancozeb plant
3.2 Methodology
All data collected for this report are used for quantitative analysis. Project Management and
Operations Management techniques have been used with these data for conducting analysis.
Network diagram in this report is created using Microsoft Project 2010.

All data for CPM analysis are secondary data and were collected directly form Project Manager and
Project status records.
Gantt chart is prepared using MS Project 2010 for showing the project status and duration. To
prepare Gantt chart, both primary and secondary data are used, and was obtained from project sites
and project status file from company.
Feasibility of the project is analysed by Profitability calculation and Break even analysis. Data for
analysis is taken from the company project record and Finance department of H.I.L.
Data for analysing Takt time of Mancozeb production are secondary data obtained from Log book of
the Mancozeb production plant.
Customer demand and market share information was obtained from the marketing department of the
company.

Abstract
In concern with growing demand on Agrochemical products and for eliminating the idle capacity in
company‟s manufacturing plants, Hindustan Insecticides Limited has initiated with two live projects
in their Udyogamandal unit.

Project 2 : Mancozeb plant capacity expansion.
Projects at H.I.L are not outsourced to third party consultants hence are not a Turn Key project.
The Projects are Managed by Dy. Manager (Projects) and Engineering Manager of Hindustan
Insecticides Limited, Udyogamanal Unit.
3.3.1 Project 1: Retrofitting of Endosulphan Plant for the manufacturing of

Glyphosate.
Proposal: Production of Glyphosate Technical at Hindustan Insecticides Limited, Udyogamandal
Unit.
Glyphosate (N-(phosphonomethyl)glycine) is a broad-spectrum systemic herbicide used to kill
weeds, especially annual broadleaf weeds and grasses known to compete with commercial crops
grown around the globe. Glyphosate is the single largest pesticide molecule manufactured and sold in
the world, which find application in field crop, as well as horticu lture. Glyphosate is effective in
killing a wide variety of plants, including grasses and broadleaf and woody plants. It has a relatively
small effect on some clover species. By volume, it is one of the most widely used herbicides. It is
commonly used for agriculture, horticulture, viticulture, and silviculture purposes, as well as garden
maintenance (including home use). Glyphosate is also used to clear railroad tracks and get rid of
unwanted aquatic vegetation
India is also witnessing a shift towards increasing weedicides consumption due to increasing labour
cost, and Hindustan Insecticides Limited would have a strong technical in its product portfolio, If
they take up manufacturing of this product.
Consequent to the temporary ban on Endosulfan by Hon. Supreme Court, the Endosulfan plant at
Udyogamandal unit was lying idle. Only a small part of the plant was being used for the production
of para-para DDT for the purpose of Dicofol manufacture. Currently H.I.L is formulating Glyphosate
into Soluble Liquid by outsourcing the Glyphosate (Tech).
H.I.L, Udyogamandal proposed to put up the facility for the manufacturing the Glyphosate(technical)
by retrofitting Endosulfan plant by using the existing reactor and vessels and adding certain other
equipments, They can manufacture 2.25 MT of Glyphosate without incurring any major capital
expenditure.

Initially the company was planning to put Chlorpyriphos in Endosulfan plant because of almost
similar route of synthesis. But, considering the market viability of Glyphosate and also the fact that
they shall be manufacturing Chlorphyriphos at their Rasayani unit, it was decided to put up the
facility for Glyphosate Technical.
Benefits for H.I.L

The company can utilize the idle capacity of Endosulfan plant which is closed due to existing ban on
Endosulfan by Hon. Supreme Court. Moreover, it will widen the company‟s product profile.
3.3.2 Project 2: Mancozeb Plant capacity expansion
Hindustan insecticides Limited started producing Mancozeb at their Udyogamandal Unit in the year
2001. Mancozeb is a dithiocarbamate non-systemic agricultural fungicide with multi-site, protective
action on contact. It is a combination of two other dithiocarbamates: maneb and nabam. The mixture
controls many fungal diseases in a wide range of field crops, fruits, nuts, vegetables, and
ornamentals. H.I.L markets Mancozeb in the trade names, HILPUNCH, HILMIL, HIL THANE-45
and MANCOZEB 80WP.
The Existing plant at Udyogamandal unit has a capacity to produce 1.8 ton of mancozeb in one batch
cycle. The cycle time is determined to be 14-15 hours, and every alternate days, 2 and 1 batches of
Mancozeb is produced at Udyogamandal unit.
With growing demand for mancozeb in Indian and global market, HIL has initiated with a project in
Udyogamandal Unit for Expanding their capacity for Mancozeb production plant. The Upgraded
plant will have double the output ie. (1.8 x 2) MT = 3.6 MT in one batch cycle.
Cycle time is not expected to increase more than an hour while comparing the upgraded plant with
existing plant.
Benefits for HIL

With insignificant increase in fixed cost on production for Mancozeb, HIL will be capable for
producing double quantity output in their Mancozeb manufacturing plant. Breakeven for the project
will be achieved in 12 months and invested amount will be recovered.

Chapter 4
OBSERVATIONS AND ANALYSIS
Glyphosate

4.1.1 Observations on Project 1:
Glyphosate Manufacturing Process

Glyphosate (Technical) is synthesised from the intermediate Phosphine methyl amino di acetic acid
(PMIDA).In the first step reaction, oxidation of PMIDA with hydrogen peroxide in presence of a
catalyst sodium tungstate. The reaction is carried out in a Glass lined/SS reactor at a temperature of
60° C – 65° C and atmospheric pressure. The product formed PMIDA oxide is then treated with
sodium Metabisulphate to remove the excess of hydrogen peroxide present. The PMIDA oxide thus
obtained is reacted with Vanadium Sulphate/ ferrous at about 40° C to 60° C (Reduction stage). The
Glyphosate thus formed is cooled to 20° C and separated by centrifuging and the finished product is
dried and bagged. The ML obtained after the recovery of Glyphosate is concentrated to 50% and is
again cooled to 20° C and centrifuge the product. The water recovered is again recycled in this
process. The ML after the recovery of Glyphosate is neutralized to remove the inorganic salts present
in it and the effluent water this generated is sent to the common effluent system for treatment. The
races of Glyphosate present in the Effluent water is oxidised with hydrogen peroxide/ozone/aeration
for the removal of Glyphosate
Glyphosate Manufacturing Process Flow Diagram

Fig: 4.1.1
Source: H.I.L, R&D department

For Glyphosate manufacturing the following Raw materials are required

Raw Materials Quantity (Kg)
PMIDA (98%) 1600
DM Water 2000 +Washing
H2 O2 (50%) 570
Catalyst(Sodium tungstate) 10.7
Vanadium sulphate .86
Sodium metabisulphate 10.00
Operations
1. Charge water and stir
2. Charge PMIDA
3. Charge Catalyst
4. Heat to 58-69°C
5. Charge Hydrogen peroxide for 4-6 hours under cooling. Rate of addition should be uniform.
6. Cool to 30° C
7. Charge 20% solution of Sodium Metabisulphate and destroy the excess of hydrogen peroxide
8. Test the completion of reduction by iodine test
9. Charge vanadium sulphate by iodine test
a) 16.5 g (1.65L 1% solution) for 3 hours stirring at 30°C
b) When the temperature reached 40°C, start chilled water cooling jerks and achieve
temperature below 60°C
c) Charge 27.5 g (2.75 L 1% solution) under full chilling.
d) Charge balance quantity 956 g (95.6 L) for 1-2 hours.
e) Start cooling to 45°C and maintain until PMIDA is less than 1.0%
10. Cool to 20°C and start filtration as possible.

4.1.2 Profitability Calculation of Glyphosate Tech. per MT
Cost for Producing 1 MT of Glyphosate
Current Consumption per

Particulars Unit Rate(Rs.) MT Amount(Rs.)
Raw material:
N-
phosphonomethyliminodiacetic
acid (PMIDA) MT 195000 1.7 331500
Liquid Ammonia MT 14000 0.26 3640
Hydrogen Peroxide(H2 O2) MT 35000 0.66 23100
Sulphuric Acid MT 7000 0.5 3500
Ferric Sulphate MT 8000 0.047 376
Catalyst (Na-Tungstate) MT 700000 0.012 8260
Total Raw-material Cost 370376
Utilities:
Power
Water
Steam
HSD/ Furnace Oil
Total Utilities cost 24770
Variable Cost : 395146
Fixed Overheads 23690.4

Packing & Forwarding 10000
Total Cost 428836.4
Selling Price 440000
11163.6
Margin per MT
Cost for Producing 1 MT of Glyphosate

Table: 4.1.2
Source: H.I.L, Project File

4.1.3 Detailed breakup cost including all the required Equipments for Project :
Estimated
Sl. No Description of Works Cost in Rs.
1 Guniting 15,00,000
2 Equipment cost
SS Rector 42,00,000
DM water plant 3,53,000
Cooling Tower 5,00,000
Chilling Unit 18,00,000
Spin Flash Drier(SFD) 28,25,000
3 Equipment Erection
SS Reactor 1,00,000
DM water plant 50,000
Spin Flash Drier(SFD) 1,00,000
4 Centrifuge front door overhauling 3,00,000

5 Pipe and Pipe fitting procurement 5,00,000
6 Laying of pipe and pipe fittings 3,00,000
7 Civil Work
Structural roofing for DM water plant 1,00,000
Structural roofing for Spin Flash Drier 1,50,000
Miscellaneous civil work including painting 6,00,000
8 Electrical and Instrumentation including statutory approval 1,50,000

Obtaining initial permit and stability certificate from factories
9 inspectorate 1,50,000
Total 1,36,78,000
Detailed breakup cost including all the required Equipments for Project
Table: 4.1.3

4.1.4 Project Initiation.
Note: Activities listed below are already completed or in progress or yet to be completed activities.
1. Project, Retrofitting of Endosulfan plant for the manufacturing of Glyphosate, commenced on

10th of March 2014. Approval from statutory authority is required to start the project hence
an application for EIA study and consent to establish the project was applied to Kerala State
Pollution Control Board. Consent for the project from statutory authority was received on
25th of September 2014.
2. Parallel to the above activity Project site appraisal and Tenders for procuring Spin Flash
dryer, DM Water plant and SS reactor was carried out. Company is bound to follow the
Purchase procedure/policy to make any procurement.
3. Tender was opened and revised price bid was issued to technically suitable supplier for Spin
Flash dryer, DM Water plant and SS reactor.
4. Purchase order was issued and advance amount was paid against bank guarantee from
supplier.
5. Equipment erecting work started on 1st March 2015, it includes cleaning the vessels in the
plant, reposition of existing vessels, fixing the vessels etc.
6. Pipe Erecting work started on 1st of April 2015. Work includes pipe fabrication, setting pipe
connections to vessels according to manufacturing process layout etc.
7. Between 2nd of April 2015 and July 5th 2015, Delivery of DM water plant, Spin Flash Dryer,
SS Reactor and their installation on Plant were progressing.
8. The building had to be reinforced, therefore Guniting process on the building from 6th May
2015 till 20th June 2015
9. Painting work started on 20th of May 2015 and was over by July 5th 2015
10. The project will be completed on the July 15th 2015; The Plant will be handed over to the
production department. Production department under the supervision of R&D department will
be testing the plant by running trail batch of production for manufacturing Glyphosate.

Project Analysis
The Project: “Retrofitting of Endosulfan plant for the manufacturing of Glyphosate” have been
analysed using Critical Path Method and Gantt Chart.
Gantt chart
A Gantt chart is a horizontal bar chart developed as a production control tool. Frequently Gantt
charts are used in project management, a Gantt chart provides a graphical illustration of a schedule
that helps to plan, coordinate, and track specific tasks in a project.
CPM Diagram
The critical path method (CPM) is an algorithm for scheduling a set of project activities.
The essential technique for using CPM is to construct a model of the project that includes the
following:
A list of all activities required to complete the project (typically categorized within a work
breakdown structure),
 The time (duration) that each activity will take to complete,
 The dependencies between the activities and,
 Logical end points such as milestones or deliverable items.
Fig: 4.1.5 depicts the Gantt chart and figure Fig: 4.1.6 depicts Gantt chart of the project respectively.

4.1.5 Gantt Chart Diagram for Project:

Gantt Chart and Network diagram are created using MS Project 2010. The activities and its duration
mentioned in the diagram are obtained from the company‟s Project files and from direct inputs by the
Project Managers and Engineers at Hindustan Insecticides Limited and from Project sites.
Gantt Chart for Project: Retrofitting of Endosulfan plant for the manufacturing of Glyphosate
Fig: 4.1.5

Fig: 4.1.6
Source:
Project 1: Retrofitting of Endosulfan plant for the manufacturing of
Network Diagram
Glyphosate

4.2.1 Observations on Project 2:

The manufacturing process of Mancozeb consist of seven stages
1. Nabam reaction
The reaction in this stage are carbon disulphaphide, ethylenediamine(EDA) and caustic soda
Iye. Carbon disulphide and water is taken in the reactor and agitate the water CS2 mixture to
form an emulsion. Dilute EDA and caustic soda Iye are added at controlled rates to the reactor
to form Nabam. The reaction temperature is 40-43 C and the final PH of Nabam should be
between 8.5 and 9.5
2. Maneb reaction
The Nabam formed in the 1st stage is reacted with 27% solution of Manganese sulphate
solution to form Maneb. The reaction is carried out at a temperature of 50-55° C
3. Mancozeb reaction
The Maneb formed in the second stage is filtered to remove the by-product Sodium sulphate
and washed in a Nutsche filter. The washed Maneb is reslurried with fresh water and
transferred to Mancozeb reactor. Here we add Zinc sulphate solution solution to form
Mancozeb. Mancozeb is formed as slurry in water. The reaction is carried out at room
temperature.
4. Spray drying
The water contained in the slurry is removed in the spray drier operated at an inlet
temperature of 240 °C and out let temperature of 100°C. The powder is collected in a storage
Bin.
5. Rotary Vacuum Drier(RVD)

The final traces of moister from the spray-dried powder are removed in the RVD where the
moister content of the powder is brought down to less than 1.0%. the operating temperature is
80°C. The jacket temperature of RVD is maintained below 120°C.
6. Blending
The powder after the RVD operation is dropped to a Blender where they add some
additives(surfactants and stabilizers) for achieving the prescribed qualities of the product.
7. Bagging
The blended powder is then bagged in Paper bags/HDPE bags and shifted to ware house for
sales.

The Flow diagram of Mancozeb manufacturing Plant
Flow diagram of Mancozeb manufacturing Plant

Fig: 4.2.1
Source: H.I.L, R&D Department

4.2.2 Cycle Time comparison of process in Existing Mancozeb Plant and

Upgraded Mancozeb plant.
Existing Plant
Reaction Process Cycle Time in Hours

Nabam Reaction 2
Maneb Reaction 3
Neutsche Filter 5
Mancozeb Reactor 2
Spray Drier 3
Rotary Vacuum Drier 14
Blender 2
Upgraded Plant
Reaction Process Cycle Time in Hours

Nabam Reaction 2
Maneb Reaction 3
Neutsche Filter 8
Mancozeb Reactor 2
Spray Drier 3
Rotary Vacuum Drier 15
Blender 3
Cycle Time comparison of process in Existing Plant and Upgraded Mancozeb plant.
Fig: 4.2.2
Source: H.I.L, Mancozeb Production Plant Log Book

4.2.3 Detailed breakup cost including all the required equipments for Project:
Value in
Sl. No Particulars Rs. Lakhs
1. Building (24m X 8m X 16m) (h x w x l) 75
2. RVD and Accessories 85
3. Ribbon Blender 30
4. Manganese Sulphate Batch vessel 10
5. Vacuum Pump 30
6. Load Cell, Valves, Duct etc. 10
7. Nitrogen Generator 14
8. Electrical Instrumentation 10
9. Equipment Erection 20
10. Bagging Machine 10
11. Powder Bin 4.0 MT cap 15
12. Nitrogen Receiver 6
13. Slurry Tank with Agitator 25
14. Pipes and Fittings 10
15. Preparation of Drawings 3
16. Electrics (motor, cables, MCC, Panel board etc.) 20
17. Miscellaneous Items 37
Total Cost 410
Detailed breakup cost including all the required equipments for Project: Mancozeb Plant
Capacity Expansion
Table: 4.2.3
Total Cost for Project = Rs. 4.1 Crores

4.2.4 Cost of production for 1 MT of Mancozeb
Particulars Amount(Rs.)
Raw material:
Carbon Di Sulphide 36812

Ethylene diamine 41885
Zinc Sulphate 2799
Manganese Sulphate 24642
Calcium Lingo Sulphonate 1653
Hexamine 1689
Jeemol 2569
Caustic Soda Lye 8790
CC Tech 268
Total Raw Material Cost 121107
Utilities:
Power 8380
Water 2495
Furnace Oil 4123
Fuel Oil 8407
Total Utilities cost 23405
Total Variable Cost 144512

Conversion Cost:
Employee 26117
Repairs 4129
Factory Overheads 2672
Admin Overheads 1666
H.O Expenses 1899
Pollution Control 54
Depreciation 1885
Interest 12004
Total Conversion Cost 50426
Total cost per MT 194938
Cost of production for 1 MT of Mancozeb

Table: 4.2.4
Source: H.I.L, Finance Department
Total Cost of production for 1 MT of Mancozeb at Hindustan

Insecticides Limited = Rs. 194938

4.2.5 Project Initiation.
Note: Activities listed below are already completed or in progress or yet to be completed
activities.
1. Project, Mancozeb plant capacity expansion, commenced on 12th of July 2012. Approval
from statutory authority is required to start the project hence an application for EIA study and
consent to establish the project was applied to Kerala State Pollution Control Board. Consent
for the project from statutory authority was received on 7th of December 2012.
2. After receiving the approval from KSEB, Tenders are floated for procuring RVD , Ribbon
Blender, Bagging Machine, Pilling for super Structure, Construction of Building were carried
out. Company is bound to follow the Purchase procedure/policy to make any procurement.
Enquiry for procuring vessel, powder bin, Cyclone, rotary valves
3. Tenders were opened and revised price bid was issued to technically suitable supplier for
RVD, Ribbon Blender, Bagging Machine, Pilling for super Structure, Construction of
Building
4. Several Meeting are arranged with the suppliers and Project Engineers for correction of
equipment design drawing and deciding the specifications.
5. Purchase order was issued to supplier and advance amount was paid against bank guarantee
from the supplier.
6. Equipment erecting work started on 2nd of March 2013.
7. Pilling Work started on 14th May 2014 and Building super structure works commenced on
9th September 2014.
8. Between 12th of December 2013 and 16th of June 2015, Delivery of Ribbon blender, Bagging
Machine, electrical Motors, Panel Boards, Cables, Light Fittings, Cable racks, Cooling racks
and their installation on Plant were progressing.
9. Delivery of Rotary Vacuum Drier( RVD) by the supplier to the project site prolonged the
whole project. Supplier took 394 days to deliver the equipment from the date company
handed over the equipment drawing.
10. The project is expected to be completed on 5th of August 2015; The Plant will be handed over
to the production department. Production engineers would start the commission of Plant.

Project Analysis
The Project: “Mancozeb Plant Capacity Expansion” have been analysed using Critical Path Method
and Gantt Chart.
Gantt chart
A Gantt chart is a horizontal bar chart developed as a production control tool. Frequently Gantt
charts are used in project management, a Gantt chart provides a graphical illustration of a schedule
that helps to plan, coordinate, and track specific tasks in a project.
CPM Diagram
The critical path method (CPM) is an algorithm for scheduling a set of project activities.
The essential technique for using CPM is to construct a model of the project that includes the
following:
A list of all activities required to complete the project (typically categorized within a work
breakdown structure),
 The time (duration) that each activity will take to complete,
 The dependencies between the activities and,
 Logical end points such as milestones or deliverable items.
Figure 4.2.6 depicts the Gantt chart and figure 4.2.7 depicts Network Diagram of the project
respectively.

4.2.6 Gantt Chart Diagram for Project: Mancozeb Plant Capacity Expansion
Gantt Chart and Network diagram are created using MS Project 2010. The activities and its duration
mentioned in the diagram are obtained from the company‟s Project files and from direct inputs by the
Project Managers and Engineers at Hindustan Insecticides Limited.
Gantt Chart Diagram for Project: Mancozeb Plant Capacity Expansion

Fig: 4.2.6

Fig: 4.2.7
Project 2 : Mancozeb Plant Capacity Expansion
Network Diagram

Chapter 5
FINDINGS
Glyphosate

5.1 Findings for Project 1: Retrofitting of Endosulfan plant for themanufacturing

of Glyphosate
Cost of Project
For the production of 2.25 MT per day of Glyphosate Technical, all major manufacturing equipment
required for the process are already available in existing Endosulfan plant. The total expenditure
estimated is Rs.1,36,78,000. (Refer Fig 4.1.3, Page 31)
5.1.1 Finding Profitability or Viability of Project
Per day, Plant has capacity to produce 2.25 MT of Glyphosate

The profitability analysis shows margin of Rs. 11163.60 per MT of Glyphosate. (Refer Fig 4.1.2,
Page 30)
Total margin per day = 11163.60 X 2.25= Rs. 25118.1
Pay Back Period = 1,36,78,000 / 25118.1 = 545 days
Pay Back Period work out to be around 545 days or say 18 months
The profitability has been calculated considering the current Selling Price of Glyphosate to be Rs.
440/- per Kg.

5.1.2 Finding from Gantt Chart

Project: Retrofitting of Endosulfan plant for the manufacturing of Glyphosate
Table: 5.1.2 contains all the Tasks and their Duration for completion, obtained from the Gantt chart.
(Refer 4.1.5, Page 34)
Tasks Duration in days

 Application for consent to Establish from 144
KSPCB
 Site appraisal 74
 Tender floated for procuring spin flash 16

dryer, DM plant, SS reactor
 Technical bid opened and technical 23
suitability evaluation for spin flash dryer
 Technical bid opened and Technical 26
suitability evaluation for SS reactor
 Revised price bid opened for spin flash 7
drier.
 Revised price bid for DM Plant. 10
 Revised priced bid opened for SS Reactor. 10
 Raising PO and delivery period of 130
equipment erection.
 Equipment Erection 41
 Piping Erection. 42
 DM Water Plant delivery on Site and 27

installation
 Guniting 34
 SS reactor delivery on site and installation 19
 Spin Flash drier delivery on site and 19

installation
 Commissioning of plant 26
 Formulation for Glyphosate 27
Finding from Gantt Chart: Project: Retrofitting of Endosulfan plant for the
Table: 5.1.2
Total days for Project completion, if the succeeding Tasks were starting only after the completion of
Preceding Tasks = 674 days.
Actual duration for the Project Completion = 524 days.
The Gantt chart diagram Refer (4.1.5, Page 34) shows many Tasks in Project progressed
simultaneously thereby shortened the duration for project completion.

5.2 Findings for Project 2: Mancozeb Plant Capacity expansion
Cost of Project
For enhancing the capacity of Mancozeb production, all manufacturing equipments in Nabam
reaction, Maneb reaction, Mancozeb reaction are already equipped with capacity to double the
production output, except for Rotary Vacuum Drier and Blending Process.
Total expenditure for Capacity expansion project is estimated to be Rs. 4.1 Crores (Refer Fig 4.2.3,
Page 39)
5.2.1 Finding Profitability or Viability of Project

Per batch output in Capacity expanded Plant will produce 3.6 MT of Mancozeb and every alternate
days 1 and 2 batches of Mancozeb will be produced.
Considering the work breakdown and Planned down time, the company will at least produce 70 MT
of Mancozeb every month in the existing plant. And the Upgraded plant will produce 140 MT of
Mancozeb every month.
Company will cross their breakeven making a profit margin of 4.27 Crores over initial project
investment of Rs. 4.1 Crores within 12 months.
Breakeven Analysis have been worked out using MS excel. (Refer Fig 5.2.2, Page 49)

5.2.2 Breakeven Analysis using MS Excel for Capacity Expansion Project
No of units Cost of Market Profit

Produced after Production Selling price (in Rs.)
doubling (in Rs.) (in Rs.)
capacity
(Unit in MT)
1 194938 170000 -24938
2x1 339450 340000 550

2x2 628474 680000 51526
2x3 917498 1020000 102502
2x4 1206522 1360000 153478
2x5 1495546 1700000 204454
2x6 1784570 2040000 255430
2x7 2073594 2380000 306406
2x8 2362618 2720000 357382
2x9 2651642 3060000 408358
2 x 10 2940666 3400000 459334
2 x 11 3229690 3740000 510310
2 x 12 3518714 4080000 561286
2 x 13 3807738 4420000 612262
2 x 14 4096762 4760000 663238
2 x 15 4385786 5100000 714214
2 x 16 4674810 5440000 765190
2 x 17 4963834 5780000 816166
2 x 18 5252858 6120000 867142
2 x 45 13056506 15300000 2243494

2 x 70 20282106 23800000 3517894 1 Month
2 x 840 242830586 285600000 42769414 12th Months
Breakeven Analysis for Capacity Expansion Project
Fig: 5.2.2
Finding
Company while selling only 1 MT of Mancozeb, needs to pay contribution of Rs. 24938 , as the Cost
of Production for 1 MT of Mancozeb is Rs. 1,94,938 and Market selling Price is only Rs.1,70,000
per MT.
But by the sale of more than 2 MT of Mancozeb, company will cross their breakeven point in
manufacturing and starts making profit margin (Refer Fig: 5.2.2, Page 49 and Fig: 4.2.4, Page 40)
From the analysis, in the 12th month the company will make profit margin of Rs. 4,27,69,414.
Therefore Payback period is calculated to be 12 Months.

5.2.3 Takt Time Analysis
Takt time is an expression of Company‟s customer demand normalized and levelled over the time
company choose to produce.
Takt time = Net available time / Customer Demand
Here Takt time is calculated considering, Existing Mancozeb plant produces average of 2.7 MT of
Mancozeb per day and Capacity expanded plant will produce average of 5.4 MT of Mancozeb per
day.
Existing Plant
Takt time = 8.51 Hours for producing 1 MT of Mancozeb
Takt Time Analysis for Existing Plant

Fig: 5.2.3.a

Capacity Expanded Plant
Takt Time = 4.25 Hours for producing 1 MT of Mancozeb
Takt Time Analysis for Upgraded Plant

Fig: 5.2.3.b
Finding
After Capacity expansion project, Takt Time has reduced from 8.51 hours to 4.25 hrs.
Or say, in the Upgraded plant, to produce 1 MT of Mancozeb will take only 4.25 hrs.

5.2.4 Findings from Gantt Chart
Project: Mancozeb Plant Capacity Expansion
Table 5.2.4 contain all the Tasks and their Duration for completion, obtained from the Gantt chart.
(Refer 4.2.6, Page 43)
Tasks in the Project Duration in Days

 Application for consent to establish 111
from KSPCB
 Site Appraisal 3
 Tender floated for procuring RVD, 302
Ribbon Blender, Bagging Machine,
Pilling for super Structure, Construction
of Building
 Technical bid opened and technical 413
suitability evaluation for: Pilling and
construction of super structure of
building, RVD, Ribbon blender, Bagging
Machine
 Technical suitability given for Pilling & 407
Construction, RVD, Ribbon Blender,
Bagging Machine
 Enquiry floated for vessel, powder bin, 14
Cyclone, rotary valves
 Delivery of Ribbon blender, Bagging 394
Machine, electrical Motors, Pannel
Boards, Cables, Light Fittings, Cable
racks, Cooling racks
 Erection of equipments, piping and 622
electrical
 Pilling Work 82
 Building super structure works 245
 Delivery of RVD, erecting and 394
Commissioning of Pant
Findings from Gantt chart: Project 2: Mancozeb Plant Capacity Expansion
Table: 5.2.4
Total days for Project completion, if the succeeding Tasks were started only after the completion of
Preceding Tasks = 2987 days or 8 Years, 2 months.
The Gantt chart diagram (Refer 4.2.6, Page 43 ) shows many Tasks in Project progressed
simultaneously thereby shortened the duration for project completion.
Actual duration for the Project Completion = 1126 days or 3 years, 1 month.

Chapter 6
RECOMMENDATIONS

6.1 Recommendations
1. It could be suggested that instead of strictly adhering to the purchase procedure/policy of

company, the Projects could be exempted from it. Project managers must have the privilege to
choose the Suppliers for the projects as they know the right supplier for their project, Also an
anti-corruption wing could be appointed to make sure the company officers make their
decision only for the best interest of organization.
This would ensure that suppliers would not delay the delivery of equipments or compromise
on the work quality as they need to build the trust factor before the company so that company
would enlist them as a trusted supplier and provide them with more orders in future.
2. Incentivizing the supplier would motivate them to deliver the Equipments on or before
delivery date. This could ensure that the Project would not go into halt due late delivery of
equipments or materials by the supplier.
3. Projects are initiated as they are of high importance for the existence of the organization
therefore must be allotted with sufficient resources including Human Resource and Capital
Resource.
4. As the company is wide spread across acres in area. The project engineers to walk out from
their office room to the project sites to and fro consume their time and energy. I suggest that
a Special permission needs to be granted for Project Engineers to use vehicle (two-wheeler)
for their movement within the company for the project purpose only could be allowed. This
would ensure the project engineers can be at their project sites at all working times.
5. It is remarkable that over the last many decades Hindustan Insecticides Limited,
Udyogamandal Unit consecutively gets appreciation letter from Kerala State Pollution
Control Board for “Substantial Improvement in Pollution Control Activities”. The company
could be brought up to the 1st position for receiving this award in the coming up years, by
better management on disposal of the chemical wastes and more capital investment into
Effluent Treatment Plant. As the ancient Indian proverb says “We do not inherit the Earth
from our Ancestors, we borrow it from our Children.”

Chapter 7
CONCLUSION

7.1 CONCLUSION
This report has discussed about the project management on “Retrofitting of Endosulfan plant for the
manufacturing of Glyphosate” and “Mancozeb plant capacity expansion” at Hindustan Insecticides
Limited, Udyogamandal.
Projects are crucial for the existence any company therefore they need to be well managed and
executed.
Increase in population and to feed the billons of masses eventually accounts to the huge demand for
agrochemical products in Indian and global markets. It is known that, even after the usage of crop
protection products, an average of 30 to 40% of the harvest is lost due to diseases and pests.
Currently around ten Multi–national companies, 57 medium and large companies and over 400 small
units are engaged in the manufacturing of pesticide formulations. And the central public sector unit
producing pesticides is Hindustan Insecticides Limited.
Invention of Genetically Modified seeds has been the Phase changer for the industry. In 2014 the
largest review yet concluded that GM crop‟s effects on farming were positive. The meta-analysis
considered all published English-language examinations of the agronomic and economic impacts
between 1995 and March 2014. The study found that herbicide-tolerant crops have lower production
costs, while for insect-resistant crops the reduced pesticide use was offset by higher seed prices,
leaving overall production costs about the same.
This results into Agrochemical chemical companies tending to diversify their business into GM seeds
business.
GM seeds to reach every consumers or farmers over the world would take several years. Until then
Agrochemical products are needed for the agriculture production.
Man needs food for survival, Agriculture has to sustain for sustaining mankind.

7.2 Learning Outcomes
 Being a student with under graduation in Information technology and work experience in the
same, the 2 months Internship period at Hindustan Insecticides Limited gave me a wonderful
Exposure to Manufacturing sector. It was my first-hand experience into a production
company.
 Had the opportunity to visit every production plants in the company. Learned the operations
of every plant. Also had the opportunity to reach each and every department in the company.
 Being a student who wishes to build career in Project Management profile. It was a golden
opportunity for me to be at the project sites and discusses about the projects with Managers
and staffs.
I was able to learn the real nature of projects when it goes live. I witnessed many constraints
happen during the project at the project site.
A calm mind and broad picture making skills are essential for becoming a great Project
Manager. Also good Technical knowledge is required.
 The Organization study I made on Hindustan Insecticides Limited, gave me an insight and
knowledge into how a manufacturing organization s would be running.
 Experience sharing from the Managers and the workers was indeed a good learning.

7.3 References
David Cutler, Winnie Fung, Michael Kremer, Monica Singhal, and Tom Vogl (April 2010) Early-
life Malaria Exposure and Adult Outcomes: Evidence from Malaria Eradication in India American
Economic Journal
Retrieved from Harvard website:
http://hks.harvard.edu/fs/msingha/malaria_apr2010.pdf
Agrochemical Industry In India (October 6th 2015) Agrochemical Industry In India 2012-13: An
Overview |
Retrieved from The maps of India website:
http://www.mapsofindia.com/myindia/government/agrochemicalindustryinindiaanoverview
Indian Agrochemical Industry -Imperatives of Growth (July 2013) Knowledge and Strategy paper
rd
released at 3 National Agrochemical Conclave, Retrieved from Tata Strategic Management
report
Indian agrochemical industry to reach $7.5 billion by FY19: Report (Aug 25th 2014) Indian
Retrieved from Economic times website:
http://articles.economictimes.indiatimes.com/20140825/news/53205057_1_cropprotectionindustryagr
ochemicals2014report
Indian Agriculture a Snapshot (May 2014) Released by –Kagashin Global Network Pvt Ltd
Top Pesticides Agro Chemicals Companies in India (June 2015) Top Pesticides Agro Chemicals
Stocks in India by Net Sales
Retrieved from Moneycontrol website:
http://www.moneycontrol.com/stocks/marketinfo/netsales/bse/pesticidesagrochemicals.html
Tim Gutowski Brian Bowers (Year: 2004) ,Machining Operations Cycle Time Module 8.2, Lean/Six
Sigma Systems.
Retrieved from MIT Open courseware website:
http://ocw.mit.edu/courses/engineering-systems-division/esd-60-lean-six-sigma-processes-summer-
2004/lecture-notes/8_2maching_optime.pdf
E-Tenders, Hindustan Insecticides Limited (June 2015) Retrieved from H.I.L website:
http://www.hil.gov.in/(S(bdpialunmxmuf545bldqik55))/Tender.aspx
Annual Reports, Hindustan Insecticides Limited (June 2015) Retrieved from website:
http://www.hil.gov.in
Caroline Smith (Year :2004) Critical Path Analysis and PERT Charts- Planning and Scheduling
More Complex Projects Retrieved from Mindtool website:
http://www.mindtools.com/critpath.html
Douglas West, John Ford, Essam Ibrahim (2009), Porter Generic Competitive strategies, Strategic
Marketing Creating Competitive Advantage, Oxford University press.

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Technical Report · June 2015

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Retrofitting of Endosulfan plant for the manufacturing of Glyphosate

Under the Guidance of

In partial fulfilment of the Course- Industry Internship Programme-IIP

Industry Internship Programme (IIP)

Signature of the Student :

Name of the Student : ARJUN AJIT

Signature of Faculty Guide:

Name of the Faculty Guide: Prof. Ellur Anand

I am using this opportunity to express my deepest gratitude and special thanks to

It is my radiant sentiment to place on record my deepest sense of gratitude to Mr. Sebastine

I perceive this opportunity as a big milestone in my career development.

Index Content Page

1 INTRODUCTION & INDUSTRY OVERVIEW 2

2.1 Hindustan Insecticides Limited (H.I.L) 15

4 OBSERVATIONS AND ANALYSIS 27

4.1.1 Observations on Project 1: 28

4.2.1 Observations on Project 2: 36

5.1. Findings for Project 1: 46

5.2 Findings for Project 2: 48

Sl No. Fig. No. Figure Name Page

13 5.2.2 Breakeven Analysis for Capacity Expansion Project 49

Sl No. Table Table Name Page No.

Finally Conclusion, Recommendations and Learning Outcomes are presented.

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Alliance School Of Business, Alliance University, Bangalore

Alliance School Of Business, Alliance University, Bangalore

1.2 Industry Overview

There are broadly 5 categories of crop protection products:

Insecticides: Insecticides protect crops by killing insects or preventing their attack.

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1.3 Structure of Agro-chemical Industry

Alliance School Of Business, Alliance University, Bangalore

1.4 Global scenario

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1.4.1 Global Trade of crop protection products

Leading Trading countries in Agro Chemical Industry, FY 2012

1.4.2 Global Industry Challenges

Mergers and Acquisitions affecting SMEs:

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1.5 Indian Scenario

Comparison on countries for Consumption of Crop protection product

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1.5.1 Distribution of domestic crop protection market - Product category

Distribution of domestic crop protection market - Product category

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1.5.2 2013- Indian Herbicides Market Estimate

2013- Indian Herbicides Market Estimate

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1.5.3 2013 - Indian Fungicides Market Estimate

Volume Value (Rs. % Share of

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1.5.4 2013- Indian Insecticides Market Estimate

Sl. Volume Value (Rs.Mio) at % Share of

2013- Indian Insecticides Market Estimate

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1.6 Market Share of Companies in Indian Agro-Chemical Industry

Company Name Net Sales in Rs. Market Share in

Total 27,200.00 100.00%

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Alliance School Of Business, Alliance University, Bangalore