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ORGANISATION STUDY AT FACT – RCF BUILDING PRODUCTS LIMITED
1.1 INTRODUCTION
Organizational Study is the systematic study and careful application of knowledge about how
people as individuals and as groups act within organization. An organizational study encompasses
the study of organizations from multiple viewpoints methods, and levels of analysis. Whenever
people interact in organization many factors come in to play. Modern organizational studies attempt
to understand and model these factors. Like all modernist social sciences organizational studies seek
to control predict and explain.
The organizational study was done as partial fulfillment of the requirement for the award of
Master of Business Administration (MBA). The chief objective of this study is to understand the
working of various department functions during a particular period and the concept of organization.
It also enables students to explore issues and problems in an organizational setting given suggestion
to sort at these issues that would help the future managers to face the challenges ahead. It provides
students the opportunity to know observe, learn, collect and analyze the nature and vision.
The threat of climate change caused by the increasing concentration of greenhouse gases in
the atmosphere is pushing the whole world into a catastrophic crisis situation with universal concern.
The need of the 21st century is for energy efficient and eco-friendly products. The building industry
accounts for 40% of CO2 emissions. Building construction causes CO2 emissions as a result of
embodied energy consumed in the production of energy intensive building materials and also the
recurring energy consumption for cooling and heating of indoor environment. Rapid wall, also called
gypcrete panel is an energy efficient green building material with huge potential for use as load
bearing and non-load bearing wall panels. Rapid wall is a large load bearing panel with modular
cavities suitable for both external and internal walls. It can also be used as intermediary floor
slab/roof slab in combination with RCC as a composite material. Since the advent of innovative
Rapid wall panel in 1990 in Australia, it has been used for buildings ranging from single story to
medium - high rise buildings. Light weighted Rapid wall has high compressive strength, shearing
strength, flexural strength and ductility. It has very high level of resistance to fire, heat, water,
termites, rot and corrosion. Concrete infill with vertical reinforcement rods enhances its vertical and
lateral load capabilities. Rapid wall buildings are resistant to earthquakes, cyclones and fire.
SANTHIGIRI INSTITUTE OF MANAGEMENT

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FACT-RCF Building Products Limited (FRBL) is a joined venture of M/s Fertilizers and
Chemical Travancore Limited, Kochi (FACT) and M/s Rashtriya Chemicals and Fertilizers Limited,
Mumbai (RCF) (Both public sector undertakings under the department of fertilizers, Government of
India) producing load bearing panels made of gypsum, reinforced with glass fiber. Gypsum is a
byproduct of fertilizer manufacturing. FRBL Prefab GYPWALL is a single panel walling system
developed with the technical knowhow from Rapid Building Systems (RBS), Australia, who is the
world leader in making large size load bearing building panels from gypsum. Readymade smooth
finishing load bearing wall panels are made out of Gypsum and High Strength Glass Fiber.
GYPWALL panels are strong as well as light and can be used as wall or roof panels as required. The
technology has worldwide acceptance and has been approved by Building Material Technology
Promotion Council (BMTPC) India. SHINE Wall putty and SILKY Wall Plaster produced by FRBL
through a unique process from Gypsum are characterized by their extra smooth finish and ease of
application.
FACT has about 7 million tons of industrial by-product gypsum. By setting up Rapid wall
and Plaster products plants, they intend to produce 1.4 million sq. m or 15 million sq. ft. panel per
year and about 50000 tons of superior quality wall plaster and wall putty. RCF has already setup a
same capacity plant in their Chembur plant to meet the huge demand of Mumbai market.
IIT Madras has come out with a design manual for GFRG panels published by BMTPC. IIT
Madras has been testing and conducting various studies on GFRG wall panels for the past 10 years.
IIT Madras has constructed a 2 storied 4 apartment building at their campus using GFRG Panels for
the entire construction including slab. The Structural Engineering Research Centre (CSIR-SERC)
has tested GFRG panels in the construction in earthquake prone areas FRBL has set up a 150 Crore
state of art plant at Kochi for manufacturing and sales of Gypsum based building products like load
bearing walls and wall plaster.
FRBL PREFAB GYPWALL is a revolutionary low cost load bearing, prefabricated, walling system
with broad construction application for individual domestic houses to multi-storied residential
buildings. GFRG wall panels has one of the lower levels of embodied energy of all manufactured
walling products. FRBL wall plaster is considered as an advanced substitute to the conventional
sand and cementing plastering. FRBL utilizes the experiences and expertise of FACT &RCF for the
manufacturing of gypsum based building products with the technical support of Australian
technology. FRBL Kochi unit spread over an area of 10 acres and has about 100 employees. The

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departments include administrative department and maintenance department with purchase, finance
and R&D department in administrative and engineering section, Process section and Plant service
in maintenance. It is assumed 4000 panels per year production and uses water repellent additives
from Elkay Chemicals. Single Panel costs ₹1000 per sq. m.
OBJECTIVE OF THE STUDY

The organizational study was carried out at FACT-RCF Building Products Limited (FRBL) to
achieve the following specific objectives: -
1. To understand the organizational framework & it’s functioning.

2. To gain knowledge about different departments of the organization and the functions.
3. To study the interdependence of different departments.
4. To make a SWOT analysis of the organization
Scope of the study

The study is being conducted for FACT-RCF Building Products Limited (FRBL). And this
study tells as an overall view of organization and function carried out by different departments like
manufacturing, maintenance, marketing, human resource, sales, and finance etc.
METHODOLOGY OF THE STUDY
Data required for the study is obtained through primary and secondary sources.
Period of the study
The study was held from 02/05/2018 to 31/05/2018.
SOURCES OF DATA:
Primary data:
Primary data have been collected through observing the general surrounding, the functional
process, interactions of employees, discussion with managers etc. Work site and plants were visited
were the actual process of production and activities of various department were seen and understood.
Secondary data:
Indirect method Literature Review Company’s internal records, Publication, Annual report, Journal,
statutory report, website (official site & others). The data collected company’s departmental manual
added key information to this report and help us to understand the process carried by each department
in detail. Annual reports are used as statistics to reveal the present scenario of the organization.

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1.1 INDUSTRIAL PROFILE
Indian economy has been on a high growth path through the 1990s. The main propellant for
this growth has been the software and services sector in India. However, after the initial surge, the
growth has tapered off in recent years. This is due to the Indian manufacturing sector - a key
component of the overall economy - after having been a major driver of higher economic growth in
the mid - 1990s, is now showing a sharp decline in performance. India's industrial policy framework
began to be liberalized from the late 1970s, and this process accelerated with the major economic
reforms initiated in the year 1991. Industrial deregulation and liberalization have opened up
opportunities for growth, but at the same time have raised many apprehensions. How has Indian
manufacturing performed during this period of policy changes? What are some of the key features of
its development? A major part of this chapter is based on an analysis of data fi-om Annual Survey of
Industries (ASI) for the period from 1979- 80 to 1997-98. The period under study- the period from
the late 1970s or early 1980s - was one of a revival of growth of Indian manufacturing according to
several earlier studies. The slow growth of Indian industry during the earlier period, particularly
between the mid-1960s and late 1970s, was the focus of a serious academic debate. According to one
view, India's industrial 83 progress was hindered due to the slow expansion of domestic demand - a
consequence of the unequal income distribution and slow growth of agricultural income in the
country. However, another argument was that the over dependence on domestic markets for industrial
expansion was due to the "export pessimistic" industrial policies followed. There were several
criticisms on the country's industrial policy framework, particularly on the regime of licensing, which
imposed a number of controls on industrial expansion. The controls led to economic inefficiency and
resource misallocation.
The manufacturing industry in India has gone through various phases of development over
time. Since independence, the Indian manufacturing sector has travelled from the initial phase of
building the foundation in 1950’- early 1960’s, to the license–permit Raj in the period of 1965–1980,
to a phase of liberalization of 1990’s. India’s growth in the manufacturing sector over the last decade
has been good. In 2013, it was ranked the 4th most competitive manufacturing nation in Deloitte’s
global index for 38 nations. The economy experienced significant expansion during the period 2006
-2011, achieving a 5 year CAGR of 7.8%. * Manufacturing sector contributes about 15% of India’s
GDP and 50% to the country’s exports. The Manufacturing sector employed 58 million people (about
12% of the workforce) in 2008. By 2012, it was estimated that this sector will employ a further 12–

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13 million out of nearly 89 million additional people who will enter the workforce. Every job created
in manufacturing has a multiplier effect, creating 2–3 jobs in the services sector. In a country like
India, where employment generation is one of the key policy issues, this may make this sector a
critical sector to achieve inclusiveness in growth.
FACT marketing network is spread over the states of Kerala, Tamilnadu, Pondicherry,
Karnataka, Andhra Pradesh and Telangana and has around 100 field storage points and 7000 retail
selling points in these states. FACT fertilizers are also available through the retail network of the co-
operative marketing federations of the southern states. The total sales of fertilizers during 2014-2015
was 7.77 lack mts. FACT also operates 5 NOK mixture production center in Kerala for the supply of
tailor made NPK combinations to suit particular soil and crop needs apart from its otherwise wide
range of production line including bio fertilizers manufactured by FACT.
In the particular socio economic context in which FACT become the first large scale producer
of chemical fertilizers in India the full responsibility for selling fertilizer concept to the tradition
bound farmers also rested on the company. The farmers, by the larger, were reluctant to try out such
a new product total unfamiliar to them. It became clear FACT that their role did not end with
producing and selling fertilizers, the farmers had to be not only persuaded to accept fertilizers as a
necessary input for better production but also to be instructed on the correct method of applying
fertilizers, at the right time and in the right measure. This involved an elaborate and well planned
fertilizers promotion programmer and a well tutored dealer network. FACT under-took these
responsibilities with a missionary zeal and enlarged its promotional objective from marketing of
fertilizers to scientific farming.
2.1.1 WORLD SCENARIO
Although use of gypsum wallboard increased worldwide, only industrialized nations, such as
the United States, used gypsum primarily for wallboard products. In developing countries especially
in the Middle East and Asia, most gypsum was used in the production of cement or as a plaster
product. Estimated world production capacity for gypsum wallboard in 2001 exceeded 60 billion
square feet or about 5.6 billion square meters at more than 250 plants worldwide. Almost one-half of
this capacity was in the United States. Asia mainly China and Western Europe each accounted for
about one-fifth. Construction or expansion of dozens of wallboard plants is underway in many

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countries throughout the world. The use of synthetic gypsum by United States and other
industrialized nations has increased.
The Global Glass Fiber Reinforced Gypsum Market is expected to reach USD 3.58 billion by
2025, from USD 2.30 billion in 2017 growing at a CAGR of 5.5% during the forecast period of 2018
to 2025. The upcoming market report contains data for historic years 2015 & 2016, the base year of
calculation is 2017 and the forecast period is 2018 to 2025.
Glass fiber reinforced gypsum (GFRG) Panel is majorly branded as rapid wall, it is a building
panel product that is made of calcined gypsum, plaster which is then reinforced with glass fibers, for
Mass-scale building construction. GFRG is generally used for rapid techniques for timely delivery
of construction projects by adopting fast methodologies and alternate building materials that are
necessary in various regions around the globe, to make the construction affordable and also
sustainable. The construction technique done, by making use of glass fiber reinforced gypsum
(GFRG) panels (with reinforced concrete infilled cavities) to build homes promises a altered solution
for quick and affordable mass housing in different regions. GFRG building system is a rapid building
technology that is composed of prefabricated wall panel load bearing system. GFRG is also an eco-
friendly building material and it is manufactured from either natural or industrial gypsum. According
to an article published by International Journal of Advances in Mechanical and Civil Engineering, In
India, the GFRG panels have been manufactured from the fertilizer by-product waste. These has been
done as an outcome of the research done at IIT Madras on the feasibility of using these panels for
affordable mass housing in India, a two-storeyed GFRG building of 184 square meter area was built
at IIT Madras campus, as a demonstration of the suitability of this technology.
2.1.2 INDIAN SCENARIO
The world market for gypsum boards is estimated to be around six billion sq meters. As
compared to this, the Indian market is very small at present and is estimated to be around 25 million
sq meters of gypsum board. Market trends have however revealed that the Indian market for gypsum
board is registering a growth of around 15 percent per annum and as such, India is one of the fastest
growing markets in the world. The growth in gypsum board market is much faster than the growth
rate of cement, which is growing at only about 10 per cent per annum. An important reason for the

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fast growth of gypsum board market in India is the boom in the construction sector. Besides, gypsum
board is substituting traditional solutions such as brick and mortar, and plywood. Gypsum board is a
mix of gypsum and paperboard. These boards come in the form of 4 ft x 6 ft sheets. One can use
them to create internal walls. These boards offer the advantages of very good sound, water, thermal
and fire insulation. Plywood, the other product that is commonly used in interiors, does not offer very
good protection against fire.
Traditionally, the gypsum panels have been used in Indian buildings for false ceiling. Since,
many years, these panels are POP caste sheets and these are manufactured by manual or semi-
automatic process. A number of small and medium units have been manufacturing gypsum panels
with different designs and textures. As regards, the gypsum board, Gypsum India happens to be the
market leader controlling major share of the gypsum board market in India. Recently, in 2007-08,
M/s Lafarge, France in collaboration with Boral of Australia have setup gypsum board manufacturing
unit Lafarge Boral Gypsum India Pvt. Ltd. in India at Alwar, Rajasthan. The investment in the plant
is around Rs. 100 crores.
Lafarge Boral plant is claimed to be a Greenfield plant for manufacturing plasterboards. The
plant will have a capacity of 10 million sq meter of different type of gypsum boards. This plant will
be located in Alwar district of Rajasthan. So it will be ideally situated to cater to the north Indian and
the NCR market, which are among the fastest growing markets in this country. Rajasthan has also
been chosen because large gypsum deposits are available in that state.
Gypsum boards are hundred per-cent green products and the entire manufacturing process
itself is environmental friendly. Lafarge Boral Gypsum India (LBGI) is an accredited member of the
Indian Green Building Council (IGBC). The Leadership in Energy and Environmental Design
(LEED-INDIA) Green Building Rating System is a nationally and internationally accepted
benchmark for the design, construction and operation of high performance green buildings and
gypsum board systems can contribute up to 14 points to green buildings under the LEED rating
system. The rank of ‘Green Credits’ is given to the buildings, based on its environmental footprint
during construction and normal occupation.
With a large number of real estate development projects coming up in India, boom in the
construction of multiplexes, shopping complexes, hotels, airports, educational institutions, hospitals
and other construction projects, the demand for gypsum board is likely to grow at a very fast pace in

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Indian market. Further, with the growing emphasis on environmental protection, sustainable
development emphasis on construction of green buildings of international standards, gypsum board
and gypsum panel would find more and more application in the construction industry in India. The
extensive use of gypsum board in the construction of new terminal at India Gandhi International (IGI)
Airport is an indicator about the future trend in the application of gypsum board in India.
2.1.3 Marketing network in India
There exists a strong and well established network for marketing of Gypsum board and panels
in India. Normally the dealers/traders engaged in the business of constructions materials mainly for
interiors of the building also deal in the gypsum board and gypsum panels. These dealers/traders
primarily supply Gypsum board/panels for false ceiling and partitions, aluminum sections, plywood,
vinyl flooring, flush doors, laminates etc. An illustrative list of dealers in the field of gypsum board
and panels is given in Annexure- I .
2.1.4 Major Market Competitors/Players: Global Glass Fiber Reinforced

Gypsum Market
Some of the major players operating in the market are Continental, Georgia-Pacific, National
Gypsum, Formglas Products Ltd, CERTAINTEED, FRBL, Knauf Danoline A/S, USG Corporation,
ingchuang Building Technique（Shanghai）Co.Ltd., Horizons Industrial Development Co. L.L.C,
CHIYODA UTE CO.,LTD, Saint – Gobain Gyproc India Ltd, Rapidwall, Stromberg Architectural,
Metro-Goldwyn-Mayer Studios Inc, IntexForms, Inc among others

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2.1.5 MANUFACTURING DIVISIONS
2.1.5.1 UDYOGAMANDAL COMPLEX
FACT udayogamandal plant, the oldest of FACT, which started production of ammonium
sulphate in 1947 using the firewood gasification process, has during the last few decades undergone
several stages of expansion and diversification, giving up old and obsolete technology and installing
new and sophisticated plants making use of LNG or naphtha as raw material. Today, the
Udyogamandal plants has an installed capacity of 76050 tonnes of N and 29700 tonnes of P205.
2.1.5.2 COCHIN DIVISION
FACT cochin division was set up in the 1970s at Ambalamedu 30 km from Udyogamandal
and adjacent to the BPCL-Kochi refineries. The factory site is well connected by rail, road and
waterways which facilitate easy movement of raw materials and products.
2.1.5.3 PETROCHEMICAL PLANTS
This division of FACT manufactures caprolactam, the raw material for nylon-6 which is
extensively used for the production of tyre-cord, textile filment yarn and engineering plastics.
2.1.5.4 FACT ENGINEERING AND DESIGN ORGANISTION (FEDO)
Established in the year 1965, FACT engineering and design organization has evolved into an
engineering power house with capacity that encompasses every facet of project engineering and
management. Maintaining international standards in designing practices, safety and environmental
protection, FEDO’s expertise ranges from pre-project surveys, project implementation leading to
project commissioning and plant operation in diversified field of operation. In June 1995 FEDO
became the first engineering consultancy organization in India to be awarded ISO 9001: 1994
certification which was later upgraded to ISO 9001:2008, by M/s Det Norske veritas quality
assurance Ltd., UK.
2.1.5.5 FACT ENGINEERING WORKS(FEW)
FACT engineering works(FEW), the fabrication and engineering division of FACT was
established in 1966. As a part of its expansion plans, FEW acquired the shop and assets of M/s.
Giovanola Binny at Palluruthy, Kochi in 1989 and has been operating from there since then. FEW is
one of the leading engineering and contracting firms in Kerala and is engaged in the design and

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manufacturing of a wide range of products such as class1 pressure vessels, heat exchanger, waste
heat boilers, storage tanks, penstock pipes, columns, towers etc...
2.1.5.6 FACT RCF BUILDING PRODUCTS LIMITED (FRBL)
FRBL is a joint venture of the fertilizers and chemicals Travancore limited Kerala and
Rashtriya chemicals and fertilizers, Mumbai, producing load bearing panels made of gypsum,
reinforced with glass fiber. Gypsum is by-product of fertilizers manufacturing bearing building
panels from gypsum. Readymade smooth finished load bearing wall panels are made out of gypsum
and high strength glass fiber GYPWALL panels are strong as well as light and can be used as wall
or roof panels as required. The technology has world-wide acceptance and has been approved by
building material technology promotion council(BMTPC) India. Shine wall putty and silky wall
plaster produced by FRBL through a unique process from gypsum are characterized by their extra
smooth finish and ease of application.

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3.1 ORGANISATIONAL PROFILE
3.1.1 History
M/s FACT started at Udyogamandal, on bank of river Periyar in 1944 to produce chemical
fertilizers for increasing the agricultural production.
FACT has since then grown, expanded and branched out in a fantastic manner so that today it is
one of the biggest fertilizer enterprises in the country. It has seven sub units as follows;
1. Udyogamandal Complex
2. Cochin Division - both these are fertilizer production units
3. Petrochemical unit - here the production is Caprolactam
4. FACT Engineering & Design Organization (FEDO)
5. FACT Engineering Works (FEW)
6. FACT Marketing Division
7. FACT RCF Building Products Limited (FRBL)
M/s FRBL is a 50:50 joint venture of M/s Fertilizers and Chemicals of Travancore Limited
(FACT), Kochi & Rashtriya Chemicals & Fertilizers Limited (RCF) Mumbai. It is situated in FACT
Kochi Division, Ambalamed, Kochi. It is manufacturing Glass Fiber Reinforced Gypsum (GFRG)
load bearing wall panels and gypsum plaster for building construction. The technology is supplied
by Rapid Building System (RBS), Australia.
These panels are reported to have the following advantages over the conventional walls:
• Light weight
• High compressive strength
• Large panels up to 12 m long, 3 m height, 125 mm thickness
• Highly thermal efficient
• Fire resistant with 4 hrs. rating
• Water resistant
• Ensure best thermal comforts
• Cooler interior in summer and warmer in winter
• Resistant to earthquakes cyclone
• Superior quality product at competitive cost
• Enable rapid construction - save time and cost

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• Superior finished houses and building

• No need to plaster walls & ceiling
• Maintenance free due to non-corrosion and free from termite, fungus and rot.
Rapid wall Panels are approved by Building Material Technology Promotion Council
(BMPTC) under Urban Development Ministry, Government of India, for construction up to ten
storied buildings in India, based on the studies conducted by Structural Engineering Research Centre,
CSIR and IIT, Chennai. The plant is located in FACT Cochin Division campus, Ambalamedu,
Kochi, Kerala.
3.1.2 MISSION, OBJECTIVE AND STRATEGIES
3.1.2.1 Mission
To provide affordable mass housing for the society.
3.1.2.2 Objective
To foster a culture of caring, trust and continuous learning while meeting the expectations of the
society.
3.1.2.3 Strategies
• FRBL deals with advanced technology and building practices that only cost a fraction of
traditional methods.
• The use of GFRG panels reduces construction time and conserves resources.
• It is a green product, using only half the energy and minimizing carbon dioxide emissions.
• FRBL utilizes gypsum which is a waste product, thereby reducing waste and pollution.
3.1.3 SIGNIFICANT FACTORS FOR SUCCESS

• Conventional building materials like reinforcement steel has seen a large increase in cost over
the last few years while raw materials like sand have become scarce. This has led to an
increased interest in newer, non-conventional methods for construction and FRBL has been
able to capitalize on this.
• GFRG panels are a rather recent innovation that hasn’t yet been used to its full potential.
FRBL made the right decision at the right time to get the technological know-how for a
promising upcoming product. Today they are the producers of the largest GFRG panels in the
world.

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• The main product of FRBL, the GFRG panels, produced in Kerala have properties that make
it suitable for the local climate, being able to prevent water leakage during the monsoon and
keeping interiors cool in the extreme heat of the summer. Therefore, the local demand itself
has been a key factor for the company’s growth.
• FACT, the parent company of FRBL has had a long and celebrated history in Kerala. Many
years of FACT’s success and goodwill has contributed to high consumer confidence in FRBL
in the region.
3.1.4 FUTURE PLANS FOR GROWTH

Over the last few years, FRBL has struggled to operate at maximum efficiency due to a non-
availability of adequate machine equipment. The GFRG panel production plant in FRBL currently
achieves only a fraction of its maximum production capacity. While the company has invested
heavily for procuring six panel casting tables, it doesn’t possess machinery for other operations, like
cutting or drying, in the same proportion. This has significantly constrained production.
FRBL has requested the Central government for funds to the tune of ₹75 crores and is
currently awaiting approval for the same. A significant part of the funds will be used for the
repayment and closure of bank loans that were taken for setting up the factory.
The company plans to utilize the rest for procuring new equipment and machinery, like a second silo,
dryer, drying rack, bulldozer, Acroba forklift, etc., to increase production capabilities. This will
enable a twofold rise in the number of GFRG panels produced a day.
3.1.5 ORGANIZATION CHART – DESIGN AND STRUCTURE

The Organization is headed by a Board of Directors comprising of members from FACT and RCF.
The Board of Directors is headed by the chairman. There are six members on the board, excluding
the chairman, three each from FACT and RCF. The Chairmen of FACT and RCF alternately assume
the role of Chairman of FRBL every two years.
Under the Chairman, the MD is the highest officer who deals with the internal workings of the
organization. The role of the MD is not just strictly within the organization. He is also responsible
for pushing the brand and increasing awareness of the products to other departments in the
government.

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Fig No: 3.1.5

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3.1.5.1 ADVANTAGES AND DISADVANTAGES OF ORGANIZATIONAL SRUCTURE
FRBL follows a ‘Departmental Line Organization’ structure. In a line organization model,

authority flows from the top to the bottom while accountability travels from the bottom to the top
along the chain of command of the organizational hierarchy. It is considered the simplest method of
administrative organization. In line organizations, the control of each division is vested with the head
of that particular division. The diagram below illustrates a line organization structure:
Fig No: 3.1.5.1 A
Line organizations can be of two types:

1. Simple Line Organization
2. Departmental Line Organization
A ‘Simple Line Organization’ is one in which operations performed at any level of management is
the same. Every division in this organization type performs the same function. The divisions are
created only to ensure better control. An example of the simple line organization structure has been
illustrated below:

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Fig No: 3.1.5.1 B
The ‘Departmental Line Organization’ structure like the one followed at FRBL is one where
the entire organization is divided into different departments, each performing a unique function. The
control of each department lies with the head of that department, and the head of each department
reports to a common senior officer. The departmental line organization is shown in the illustration
below:
Fig No: 3.1.5.1 C

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3.1.5.1.1 ADVANTAGES
• This is the simplest model of organization structure to understand and execute.

• Control is unified and decisions are made by a single individual. This enables fast decision
making.
• There is good clarity about the responsibilities and authority of each level in the organization.
• There is flexibility in the decision making process for line officials as the relationships of
authority are clear.
• Communication takes place directly from superiors to their subordinates.
3.1.5.1.2 DISADVANTAGES
• Since the decisions are to be implemented to the bottom of the line there tends to be a heavy
reliance on the line officials.
• There is a problem of lack of managerial specialization in this system A line organization
flows in a scalar chain from top to bottom and there is no scope for specialized functions.
• The communication between the higher and lower authorities is rather one sided, with
suggestions from the bottom not reaching the top.
• Lack of Co-ordination- Whatever decisions are taken by the line officials, in certain situations
wrong decisions, are carried down and implemented in the same way. Therefore, the degree
of effective co-ordination is less.
• This system has the potential to give rise to an autocratic authority if line officials misuse
their power.

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3.1.6 INDIVIDUAL DEPARTMENT AND ITS STRUCTURES, FUNCTIONS
3.1.6.1 FINANCE DEPARTMENT

The Finance department is involved in all money matters of the organization. It is responsible
for the procurement of funds, allocation of funds, cutting costs and balancing financial goals among
other things. Payroll is another important function which includes making sure that employees
receive their salaries on time.
1.1.6.1.1 OBJECTIVES
1. To Manage & account for the financial resource of the Organization, to forecast its
requirement in the future and plan accordingly and to check for deviation.
2. Report the financial performance of the company to Management, stakeholders& and to
comply with the Govt. rules and regulations
The main functions executed by the Finance department are as follows:

Accounts payable and accounts receivable
• Bookkeeping, which means every transaction, be they purchases or sales, made by the
organization is tracked and recorded.
• Complying with tax laws and finding ways to minimize tax payable.
• To evaluate projects and estimate the benefits.
• Financial reporting and control
• Procuring funds in the form of bank loans or investments
• Reviewing sealed offers from vendors
• Generating invoices against orders
• Approval of payments against orders on confirmation of delivery
• Allocation of funds for raw materials, salary, maintenance, transportation, legal expenses and
other miscellaneous expenses.

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1.1.6.1.2 PROCESS OF FINANCE DEPARTMENT

Finance department in FRBL is divided into five sections for carrying out its process. They are:
1. Bills & Materials
2. Sales
3. Costing, MIS, Budget
4. Cash, bank & Payroll
5. Tax & duties
1.1.6.1.2.1 Bills & Materials
The main functions are Stores accounting and Receiving, Dispatch and holding of bills
Bills section
Bills section deals with the contract account for execution of civil works and other
construction/erection, maintenance and services.
It includes:
1. Sale of tender form
2. Remittance of EMD
3. Remittance of security deposit
4. Issue of materials to the extractors
5. Receipts to certified bill in the specified format
6. Security on running account bills and final bill
7. Statutory procedures and formalities in works contract
Stores accounting
Main functions of stores accounting are:
1. Receipts of stores
2. Issue of stores
3. Returns of stores
4. Value adjustments
5. Reconciliation with control accounts
6. Unconsumed materials lying at site at the close of financial year
1.1.6.1.2.2 Sales Accounting

Some of the functions are
1. Accountability for selling and distribution of products & byproducts

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2. Recording the transaction

3. Transfer of information from depots to HO
4. Compilation of reports
1.1.6.1.2.3 The Costing, MIS And Budget Section
Is concerned with as certaining the cost of production, providing information, helping
toprepare a budget, forecasting the performance and finally making a plan.
Cost accounting
Identification of the cost centre - Direct expenses is recorded to the respective cost centre.
Indirect expenses are separately booked and allocated at the end of the year. Cost sheet is prepared
in two ways. The item in the cost sheet is compiled on the basis of process of the products or on the
basis of elements of the product.
Classification of cost
Variable cost - Raw Materials, Intermediate products, Consumable, Products, Utilities,
Packing materials, Pollution control expenses.
Fixed cost -Fixed cost of a product mainly consists of conversion cost of the product of
Salaries and wages (Direct, Indirect, Administration &Maintenance), Staff welfare expenses,
Insurance, Plant maintenance, Depreciation, Factory overheads, Administrative overheads, Head
office overheads, Gratuity and bonus, Interest on term loans and working capital.
MIS (Management information system)
To provide the management with vital facts which affects the efficient running of the business
for decision making on planning, organizing and controlling the major activities of the organization
and initiating suitable action.
MIS Briefly consists of:
Divisional Reports- Two monthly reports for each division - one for thefinance department
and another for the GM’s office
1. P & L Account-Statement and its analysis
2. Production performance of the division
3. Inventory position
4. Cost of production - Actual and budget for the month
5. Specific information important for the Management-Major projects, man-hour
utilization etc.

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Budgeting
Two types of budget - Revenue and Capital budget Two types of estimates- Budget estimate
and revised estimate.
Revenue Budget
Every year early in August detailed production targets and norms for consumption of
materials for remaining portion of the current year and also for the next financial year are prepared
by the head of Divisions.
Capital Expenditure
Shows all items of capital expenditure to be undertaken during the budget period like
expenditure on acquisition of new assets like machinery, furniture and office equipments which have
reasonable life; expansion of existing facilities and modification and improvements to plant and
machinery resulting in
i) increase in capacity
ii) Increase in useful life
iii) Improvement in quality of output
iv) reduction in cost of output is treated as capital expenditure
3.1.6.2 PURCHASE DEPARTMENT

Every manufacturing company requires raw materials to be used for production. The Purchase
department is responsible for the procurement of the required materials. The organization frequently
requires raw materials such as glass fibers, chemical retardants, palm oil, white cement and also other
items like equipment, spares of machine elements, LPG, bulbs, motors, etc. The Purchase department
procures these items and does so in an economical manner while assuring that there will be no delay
in production.
It is headed by the Assistant Manager of Materials. After purchase, the items and materials are
kept in the storeroom. As and when required by the respective departments, materials are supplied
from the store and the storekeeper updates the inventory. The functions of this department are as
follows:
• Procurement of items needed for production based on necessity.
• Securing quotations from various dealers and the same product.
• Lowering expenditure by comparing offers from dealers.
• Placing orders considering cost, delivery time and convenience.

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• Conduct a follow up with the vendor before end of delivery time.

• Issuing Goods Received Note on successful delivery.
• Keep the storeroom inventory updated
3.1.6.2.1 SYSTEM FOLLOWED FOR PURCHASE OF MATERIALS
• Materials required by the different departments of the company are procured by the Purchase
department.
• Each department makes a formal request for a required material which includes the
description of the item, the required amount and its value.
• Following an approval from the Managing Director, the Purchase department refers the
vendor list and an enquiry is sent to various suppliers.
• The department receives sealed offers from suppliers which are then opened by a financial
representative.
• The specifications of the item are checked by the respective departments to make sure that
they are technically suitable.
• Usually L1 is accepted, which is the lowest offer. If the offer however, is unsuitable due to
reasons like excessive delivery time, the next lowest offer is accepted.
• Once an offer is accepted, a proposal is made with a mention of the maximum allowable time
period. A penalty clause in included in case of late delivery.
• This is approved by the MD and the purchase order is issued along with shipping instructions.
• Before the end of the delivery time, the Purchase department will conduct a follow up with
the vendor.
• On delivery, the materials along with the warranty certificate, Delivery Order and packing
list are inspected. On completing the inspection, the purchase department issues a Goods
Received Note (GRN).
• The GRN is sent to the Finance department with along with the invoice and purchase copy.
• The payment is released by the Finance department within 30 days from the date of delivery.

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3.1.6.2.2 EQUIPMENT & SPARES SECTION
Objectives
1. Purchase of Equipment & spares from India or abroad
2. Make available spares at the right time
3. Follow a fair & transparent procedure in the above activities
Equipment & Spares Include
1. Capital items like heavy machinery or plant (For project and other purposes)
2. Equipment and spares
3. Package items involving design, supply, erection and commissioning
Functions
1. Importing materials under the approval of safe purchase committee constituted by the
Board of Directors
2. Determination of actual requirement by checking with stores, technical department,

management and giving specifications
3. Vendor Development
4. Bid evaluation & financial Concurrences
5. Entering into Contracts
6. Issue of Purchase order for equipment & spares
7. Inspections of materials and stores
8. Insurance
9. Payment

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3.1.6.2.3 EQUIPMENT & SPARES PROCUREMENT PROCESS
The User departments give their requirement which is validated by the Technical department
and is finally approved by the management for issue of purchase requisition. The purchase requisition
is checked with the stores stock. If the store already has the item, then it is supplied to the concerned
department; otherwise items are procured with the help of vendor. In case of specific goods such as
tube light, bulb and fan vendor are already specified by the technical department and approved by
the management. Whenever the user department needs them the store department moves forward to
procure them.
Purchase order
A purchase order (PO) is a commercial document and first official offer issued by a buyer to
a seller, indicating types, quantities, and agreed prices for products or services. It is used to control
the purchasing of products and services from external suppliers. Purchase orders can be an essential
part of enterprise resource planning system orders.
The issue of a purchase order does not itself form a contract. If no prior contract exists, then it is the
acceptance of the order by the seller that forms a contract between the buyer and seller.
Detailed purchase order is issued soon after the letter of intent and normally within 30 days of issue
of letter of intent.
Inspection & Monitoring
The materials department performs expediting of orders. In certain cases, other agencies
appointed for the purpose. Materials department continuously monitors vendor's performance to
ensure timely delivery and periodic status reports is made available to all concerned departments.
Inspection may be carried out by FRBL or by third party inspection agencies, depending on the nature
of items and facilities available. Department authorized for the inspection, receives the dispatch
document. The department responsible for the clearance maintains a register for dispatch documents
and updates entries on a day-to-day basis.
Payment of freight/certification of freight bills
Freight transport is the physical process of transporting commodities and merchandise goods
and cargo. The term shipping originally referred to transport by sea, but in American English, it has

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been extended to refer to transport by land or air as well. "Logistics", a term borrowed from the
military environment, is also fashionably used in the same sense.
It is the responsibility of the department head entrusted with clearance of goods. All goods
cleared from the carrier are forwarded to the receiving section of the stores department or department
authorized for this purpose. In case of bulk materials like stationeries, the consuming department
directly receives raw materials/intermediates the goods. Materials received against turnkey jobs
awarded to agencies responsible for supply, transport, storage and erection are not taken into stock
by stores department.
Rejection/Damage of Materials
Rejected consignment is kept separate and the stores/receiving department send a first
information report to the supplier with the copy to finance and purchase department. In all cases of
rejection / shortage/damage other than for reasons attributable to supplier, the stores department takes
up the matter with the insurers under advice to finance department. Follow up of the claims and
settlement with insurer is done by finance department.
3.1.6.2.4 VENDOR DEVELOPMENT
Vendor Pre-qualification
Pre-qualified vendor list shall be maintained by materials department. The vendor list
comprises of all pre-qualified vendors under each category stating clearly the respective capability
in terms of volume of work, specification, level of technology, etc with rating of the vendors.
Addition/deletion to vendor's lists is made on a continuous basis on the above criteria.
Inviting Bid
A bid is an offer made by an investor, trader or dealer to buy a security, commodity or

currency. It stipulates both the price the potential buyer is willing to pay and the quantity he or she
will purchase at that price. A bid also refers to the price at which a market maker is willing to buy;
unlike a retail buyer, a market maker also displays an ask price.
Bids are invited by giving Advertisements in newspaper, magazines, media, website etc. The
Purchase Manager invites the bid. Normally, 30days from the date of enquiry is given for submission
of bids in limited tenders. For open tenders, 30 days from the date of appearance of advertisement is
prescribed.

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Receipt and opening of bids
Bids are opened by officers from finance, administration and purchase Department. Bidders
representatives read the Bid which consists of Prices, taxes and duties, payment terms, delivery
period, performance guarantee and brief description whichever is relevant.
Bid evaluation and financial concurrence
The technical part is forwarded to the indenting department by the purchase department as soon as
the bid opening formalities have been completed. The steps involved in bid evaluation are:
1. Technical evaluation by indenter in consultation with other technical experts, where

necessary
2. Commercial evaluation by the purchase department in consultation with other concerned

departments
3. Review and approval of technical and commercial evaluation by the competent authority to
determine the bids, which are technically and commercially suitable
Comparison of prices and financial evaluation by purchase department in consultation with other
concerned departments
Financial Concurrence
For purchases above Rs. 25000, the purchase recommendation is forwarded to finance department.
Sanctioning authority is formed as per the delegation of powers. After financial concurrence, the
proposal is forwarded to the sanctioning authority through purchase order.
Challenges of Equipment & Spare Section
1. Approval of Bids on the basis of lowest quotation where sometimes quality is compromised
2. Low working capital to maintain sufficient stock of goods

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3.1.6.3 HUMAN RESOURCES DEPARTMENT

Human resources are the people who make up the workforce of an organization, business
sector, or economy. "Human capital" is sometimes used synonymously with "human resources",
although human capital typically refers to a narrow effect (i.e., the knowledge the individuals embody
and economic growth). Likewise, other terms sometimes used include manpower, talent, labour,
personnel, or simply people.
A human-resources department (HR department) of an organization performs human resource
management, overseeing various aspects of employment, such as compliance with labour law and
employment standards, administration of employee benefits, and some aspects of recruitment
Human resources is an integral part of any organization with more than just a handful of
employees. The HR department is responsible for making sure that the workforce is efficient by
hiring qualified manpower and executing actions to furlough non-essential employees on the advice
of their respective departments. They are responsible for the overall welfare of employees in the
workplace and ensures that they get the facilities and benefits they are entitled to.
Beyond their responsibility towards the employees in the organization, the HR department also
functions as public information officers, executes certain administrative functions and works to
maintain good public relations. Below are the main functions of the HR department:
• Recruitment of qualified manpower

• Induction and training of employees
• Organizing and assisting in performance appraisals
• Implementing government policies and ensuring compliance with labor laws
• Initiates inquiries if a department reports misbehavior by an employee
• Maintains relations with trade unions
• Acts as a mediator to resolve conflicts within the organization
• Approves increments for employees
• Approves promotions
• Ensures welfare benefits to employees
• Looks after Provident Fund (PF), Employee State Insurance (ESI) and salary every month

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3.1.6.3.1 HRD MEASURES

The human resources department is responsible for looking after the overall welfare of all
employees working in an organization. Employee welfare goes well beyond just taking care of the
employee’s pay. It means to ensure that the employee feels comfortable and satisfied during his
tenure at the company. This is crucial in any organization as it helps improve morale and this directly
correlates to improved performance.
Welfare measures can be statutory or non-statutory. The former are the welfare measures that
every organization is mandatorily required to implement out of consideration for the health, safety
and wellbeing of the employee. Many of the provisions have been adopted from the following acts:
• The Factories Act, 1948

• The Mines Act, 1952
• The Motor Transport Workers Act, 1961
• The Contract Labor (Regulation & Abolishment) Act, 1970
• The Sexual Harassment of Women at Workplace Act, 2013
These welfare measures include providing safe drinking water at designated places in the
organization, making suitable seating arrangements and seating areas, ensuring well stocked first aid
kits are available and readily accessible, making sure rest rooms are adequate in number and kept
hygienic, ensuring that the canteens provide good and hygienic food for employees, etc.
3.1.6.3.2 Insurance benefits

Insurance schemes are offered to provide assistance to employees in meeting expenses due to
a disease, illness or injury. The Employees’ State Insurance (ESI) scheme is implemented in
organizations with more than ten workers for employees who earn a salary of under ₹21,000 a month.
The employee pays 1.75% of his monthly salary as premium, while the employer contributes another
4.75%. The insurance benefits can be claimed when the employee is sick or hospitalized.
Similarly, the Employee Deposit Link Insurance (EDLI) scheme provides financial assistance
to employees or his/her nominee in the event of handicap or death of the employee. It can be availed
only once by an employee.

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3.1.6.3.3 Retirement benefits

Employee Provident Fund – The EPF scheme is offered to employees with a maximum salary
of ₹10,000 a month. The employee can pay 12% of his monthly salary for the PF and the employer
contributes another 3.67% to collect a lump sum at the end of his tenure. The PF can be withdrawn
by the employee at the age of 58, or postponed till he turns 62 for a slightly higher rate of interest.
Employee Pension – Every month, the employer puts in 8.33% of the employee’s salary to
his employee pension account. Following retirement, the employee receives a monthly pension till
his death.
3.1.6.3.4 Number of Employees at various level.
# Level No. of employees
1 Managerial Level 15
2 Supervisory Level 30
3 Workers level 60 **
4 Regular contractor’s employees 6 **
TOTAL 121
Table no: 3.1.6.3.4
** This includes 2 lady employees each.

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3.1.6.3.5 POLICIES AND PROCEDURES FOLLOWED
3.1.6.3.5.1 Leave Policy

• Privilege Leave –All employees in the organization are entitled to 15 days of privilege
leave(PL) in a year. If an employee does not avail all his/her privilege leaves within a year,
the remainder of the days of leave will be carried over and added to the next year.
• Maternity Leave – All female employees in the organization with less than two surviving
children are entitled to six months of fully paid maternity leave when having a child.
Expecting mothers can avail this leave during the final months of pregnancy and for the first
few months after bearing the child.
• Leave without pay – If an employee does not have any more days he/she can take off from
work, he can still apply for a leave without pay. In such a case, the employee will not be paid
for the entire duration of his/her absence from the company.
3.1.6.3.5.2 Working Hours

At least a certain number of employees are present at the company throughout the entire day.
There are three different 8-hour work shifts for employees at FRBL:
Morning shift: 8 AM – 4 PM
Evening shift: 4 PM – 12 AM
Night shift: 12 AM – 8AM
The morning shift is between 8 AM and 4 PM. The administrative staff is present in the office
only during this shift. Most of the production work takes place during this time as well.
In the evening shift, only the mill workers will be present at the factory. They usually continue the
production process till late night.
No production work takes place in the night shift. Only a very few number of employees
remain at the factory, mostly for security reasons.
3.1.6.3.5.3 Visitor Policy

Visitors must clear a two stage security check, the first being at the FACT compound main
entrance and produce a letter as proof of appointment. If a visitor comes without an appointment, the
security will check with the concerned person at the company. If the concerned person declines to

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receive the visitor, they would be sent back. If the visitor is accepted, he will be allowed into the
compound.
The second security clearance is required at the main entrance of the FRBL plant. Visitors
are expected to fill in their names, phone number, time of arrival, purpose of visit and whom they
came to visit in the visitor log book before they can enter the premises of the company. They will
then be directed to the office of the party they intend to meet.
3.1.6.3.5.4 Health, Safety and Environment Policy

• The company will comply with all statutory requirements with respect to Safety, Health and
Environment.
• Every employee of the company, regardless of his level of functioning shall practice safety
and strive to maintain good health and clean working environment
• Safety performance and attitude shall be considered essential job performance criteria
• Accident prevention is the direct responsibility of line management and is an important
measure of managerial performance. Line management will ensure that all safety measures
are incorporated in the operating and maintenance procedures as well as in any process
technology changes in the plant/infrastructure.
• All contract jobs will be carried out only through the laid down procedures with appropriate
supervision
• The company will prefer on quality in the purchase of equipment, machinery and materials
and competent persons will be employed to handle the manufacturing activities.
• The company will ensure recycle of resources to the maximum extent
• The company will maintain good standards of housekeeping
• The company will provide a resume of health and safety performance of the factory in its
annual report
• The company will in particular carry out safety audits, risk assessment study, mock drills,
periodic assessment of health employees, environment study and will carry out remedial
measures.
• The company will continue to provide all facilities for educating, training and retraining its
employees and the public, whenever required.

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3.1.6.3.5.5 Insurance Policy

• Employees’ State Insurance – The ESI scheme is mandatorily implemented in organizations
with a worker strength greater than ten. Only employees who earn a salary of not more than
₹21,000 a month are eligible for this scheme.
Every month, the employee pays 1.75% of his salary as premium, while the employer
contributes another 4.75%, for a total of 6.5%. Under this scheme, employees are entitled to
free medical treatment for themselves and their immediate family members.
• Employee Deposit Link Insurance – The insurance benefits of the EDLI scheme are made
available to an employee or his/her nominee only in the event of handicap or death of the
employee. These benefits can only be availed once by any employee during his tenure.
3.1.6.3.5.6 Company Secretary

The company secretary is a crucial part of any large organization. It is a mandatory role in any
organization with an annual turnover above ₹5 crores. The company secretary has a set of functions
as mentioned below. He may be bestowed upon with further duties in finance, HR, administration or
legal if required by the board of directors. His key functions include:
• To guide the directors of the company as may be required with regards to duties,
responsibilities and powers
• Assisting the board in conducting the affairs of the company
• To facilitate the convening of meetings
• Attend board, committee and general meetings and ensure time limit is maintained
• Assist and advice the board in ensuring good corporate governance and in complying with
corporate governance requirements and practices.
• Obtain approval from the board, the government and other such authorities as required.
• To represent before various regulators, other

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3.1.6.3.6 MANPOWER PLANNING AND RECRUITMENT PROCESS

The Managing director holds the authority to sanction an increase in manpower. A work and
motion study is conducted to accurately determine the number of workers required to carry out each
function and thereby increase efficiency. If a shortage in manpower is reported in any sector, the HR
department requests the MD to approve the recruitment of more qualified manpower.
On receiving the approval from the MD, the HR department puts out advertisements listing
the vacancies and invites applications from candidates qualifying the criteria. The applications are
reviewed and the candidates are notified on the time and venue of their test or interview. Details of
the post applied for, like CTC and type of appointment, are also declared to the candidates
beforehand.
Based on the performance on the interviews, a rank list is prepared. Following approval, the
rank list is published and the posting is done accordingly. Once the original documents are verified,
the selected candidates are appointed to their respective departments.
3.1.6.3.7 PERFORMANCE APPRAISAL

A performance appraisal, also referred to as a performance review, performance
evaluation, (career) development discussion, or employee appraisal is a method by which the job
performance of an employee is documented and evaluated. Performance appraisals are a part
of career development and consist of regular reviews of employee performance within organizations.
A performance appraisal is a systematic, general and periodic process that assesses an

individual employee's job performance and productivity in relation to certain pre-established criteria
and organizational objectives. Other aspects of individual employees are considered as well, such
as organizational citizenship behavior, accomplishments, potential for future improvement, strengths
and weaknesses, etc.
Performance review plays an important role in maintaining efficiency in the company as it
helps in making decisions regarding employment actions and also reduces complacency in
employees. Furthermore, the performance review of an employee is a key factor considered for
promotion and pay raises. This encourages better performance from employees.
Performance appraisal is conducted once a year for all employees at FRBL. The employees
are assessed on up to 12 different parameters, each having a maximum score of 10. This includes

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parameters to assess the general behavior and efficiency of the employee in the workplace, which are
common to all roles. Other parameters considered are more specific to the role of the employee.
Some of the parameters considered during the PA are:
• Behavior towards superiors

• Communication with subordinates
• Knowledge of safety in carrying out job
• Knowledge of equipment specifications
• Ability to read diagrams
• Theoretical knowledge of work
• Practical approach towards work
• Knowledge of working of equipment
• Knowledge of equipment upkeep
On a maximum total of 120, a final score above 80 is marked “good”, while a score between 40
and 80 is marked “satisfactory”. Employees are awarded a 3% increment in their pay only if their
performance is marked at least “good”. If an employee scores as low as 30, he/she will serve a notice
period of one month during his performance will be assessed. If the employee fails to show an
improvement in performance, he/she will face retrenchment.
The performance review of any employee is done by his/her immediate superior. This review
must then be approved by the superior of the reviewer. This ensures that the review will be fair and
unbiased.

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3.1.6.3.8 TRAINING MEASURES
3.1.6.3.8.1 Safety Training
Periodical training exercises are held to educate employees on safety in different areas. This includes
classes on Plant, Fire and Electrical safety, as well as first aid training.
3.1.6.3.8.2 Plant Operation Training
When a new batch of workers is hired, the company holds special training sessions in which workers
are familiarized with the tools, equipment and operations of the plant.
3.1.6.3.8.3 PPE Training
A Personal Protection Equipment (PPE) Training program is conducted once in 6 months for the
factory workers in the company. The program deals with educating workers on the proper usage of
the PPE provided to them, as well as the importance of using it during work hours.
3.1.6.3.8.4 Training for builders
FRBL in association with IIT Madras holds an annual training session for customers and builders.
The purpose of this training is to properly educate potential customers on the benefits and qualities
of the product and educate builders on the building practices followed during construction.
3.1.6.3.8.5 External Classes

Some training programmers are organized by bodies such as the Board of Factories and Boilers and
the Pollution Control Board for workers of different industries. These classes are held to educate
workers on topics like Employee State Insurance and Provident Fund. FRBL frequently nominates
members from the company to hold these classes on behalf of the aforementioned bodies.
3.1.6.3.9 TRADE UNION PRESENCE
Indian Trade Union Act 1926 defined trade union as “Any combination whether temporary
or permanent formed primarily for the purpose of regulating the relation between workmen and
employer or between workmen and workmen, between employer and employer for imposing
restrictive conditions in the conduct of any trade or business and creating any federation of two or
more trade unions”.

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Importance of the Trade Union
1. To attain economic securities. In other words, securing permanent employment with higher
salary and benefit.
2. To improve their beginning power and balances it with that of management.
3. To improve their worker’s views, aims, ideas and dissatisfaction or frustrations to the
management.
4. To ventilate the worker’s grievances to the management.
5. To secure protection from unexpected economic needs like illness, accidents, injury etc.
6. To satisfy their social needs.
3.1.6.4 MARKETING DEPARTMENT
At the present rate of production, FRBL is comfortably able to find enough demand to meet their
supply. They can find customers for all their stock fairly easily without the need for investing in
advertisements on television or print media.
Marketing of these products is done in a very economical manner, mainly by organizing programs
that aim to educate parties related to the field of construction (like builders, contractors, civil
engineers, etc.) as well as the general public, who may be potential customers. This is done in the
following ways:
• Setting up stalls in colleges during exhibitions which helps to put out information regarding
the products in an environment where parties related to construction (like students of civil
engineering, builders, etc.) are expected to be present in order to increase awareness of the
products.
• Periodical training sessions held by the company, where builders and prospective customers
receive more insight into the benefits and applications of the product. This reduces uncertainty
about the technology.
• FRBL also encourages and promotes projects and internships by students at the company to
increase their product awareness and reach.

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3.1.6.5 SAFETY DEPARTMENT

Being a manufacturing organization, workers are always operating heavy machinery or
working in hazardous environments. Though trained to perform their duties safely using proper
equipment, it is frequently observed that workers tend to grow bolder and take unnecessary risks as
their experience increases. This progressive decline in vigilance is the key reason for industrial
accidents which could have been avoided.
The safety of workers in the industry is of paramount importance and is ensured by the safety
department. Not only does this department educate workers on the need for safety procedures, it
ensures that they are being implemented in the factory.
The following are the functions of the safety department:

• Educating workers on safety rules in the workplace
• Training workers to make proper use of personal protection equipment (PPE)
• Ensuring that workers wear the PPE in the factory
• To identify safety risks and hazards in the factory
• To ensure that the safety policies in the factory are implemented
3.1.6.6 PRODUCTION DEPARTMENT

The production department is concerned with the conversion of raw materials into finished
products. The manufacturing process is divided among 9 areas, each one performing a unique
function:
Area 100 – Feed storage and handling

Phosphogypsum produced at the FACT fertilizer plant with free moisture content typically of 10% -
20% is transported to the FRBL plant and stored here. It is then delivered to a dump hopper using
bulldozers. The dump hopper delivers feed materials to a belt conveyor system that feeds the main
feed bin located near the Calciner.
Area 200 – Calcining

The wet feed is sent to the calciner where it is subjected to a temperature of 150°C for 40-60 minutes.
This converts the di-hydrates to hemi-hydrates and makes it suitable for panel production.

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Area 300 – Product storage

From the calciner, plaster product is delivered to a product storage silo using a bucket elevator and
screw conveyor. This is stored here till it is required for production. The product storage silo has a
maximum capacity of 250 tones.
Area 400 – Plaster and putty production

The calcined phosphogypsum stored in the silo is transferred to this area for making plaster and putty.
Bags are automatically filled with 25kgs of plaster and putty and stacked using a robotic arm.
Area 500 – Panel production

The panel is made on a casting table with dimensions of 12x3 metres and to a thickness of 124 mm.
There are a total of 6 such casting tables placed along two rows. Each row houses a mixer and glass
roving delivery system for delivering slurry and glass roving for 3 tables. A calculated amount of
chemicals is mixed in water, then with plaster, to form slurry. The slurry is poured on the table and
reinforced with glass fibres. The panel sets in 45 minutes and is lifted from the casting table to
ACROBA frame and shifted to drier.
Area 600 – Dryer

The freshly set wall panels are sent to be dried using the dryer. It contains two drying chambers,
which can hold three GFRG panels each. An operator starts the drying cycle after loading the
chambers. This takes an hour. The dried wall panels are then ready for cutting and dispatch.
Area 700 – Panel cutting area

All the prefabricated walls have initial dimensions of 12x3 meters. According to the requirements of
each specific project, these wall panels must be cut into the final required dimensions. This cannot
be done with traditional cutting tools and must be done in the CNC panel cutting machine itself for
accuracy. Windows & Doors are also cut out during this process.
Area 800 – Panel storage area

Wall panels are moved from the dryer to the storage area. As per requirement, the panels are sent to
the cutting area from here. If the panels are not immediately dispatched after cutting, they are again
stored in this area.

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Area 900 – LPG storage

The LPG Storage Area consists of two 50 m³ LPG storage tanks and afire water tank having a capacity
of 200 mᵌ of water located near the LPG tanks. LPG is the fuel used for the manufacturing processes
like drying and panel cutting.
Fig no: 3.1.6.6

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3.1.6.7 TESTING DEPARTMENT

The building products manufactured at FRBL are used for constructing buildings that are several
storeys tall. For this reason, it is imperative that they must adhere to strict quality and safety standards.
The testing department ensures that the products meet these standards. Testing is conducted during
various stages of production. The following tests are conducted by the testing department:
• Moisture content test of gypsum during calcination

• Gillmore test to check setting time of gypsum during panel production
• Density test of gypsum plaster
• Axial compression test of GFRG panel block to find load bearing capacity
• Water absorption test of GFRG panel block
• Flexure test of GFRG panel
3.1.6.8 MAINTENANCE DEPARTMENT

The maintenance department is concerned with the upkeep of all equipment used by the
organization. Maintenance is of two types: 1. Preventative maintenance, which aims to prevent or
avoid failure of equipment and machine elements and 2. Breakdown maintenance which deals with
the removal and replacement of materials after failure.
The function of this department is split between three divisions: Mechanical, Electrical and
Instrumentation. Identifying risks, preventing failure and conducting periodical tests are functions
which are common to all three divisions. Other functions are more specific.
3.1.6.8.1 Mechanical maintenance

The maintenance of all machinery and machine equipment is the responsibility of the mechanical
maintenance department. This department is concerned with keeping the machines in proper working
condition to be utilized for production. The duties of this department include:
• To predict and prevent failure of machine elements

• Assessing health and lifespan of machine elements
• Removal and replacement of damaged parts in a machine
• Timely lubrication of moving parts
• Changing or cleaning filters when necessary

40
3.1.6.8.2 Electrical maintenance

Every electrical system or device is susceptible to malfunction if not monitored and well
maintained. It is the function of the electrical maintenance department to ensure that all electrical
systems used in the company are well functioning. The duties of this department are as follows:
• To ensure proper working of electrical systems in the factory and office

• To replace electrical components that are faulty
• To ensure that connections are tight and prevent short circuiting
3.1.6.8.3 Instrumentation Maintenance

There are several instruments being used in the factory, from the large weigh bridge near the gate
which weighs the truck transporting materials before and after unloading to determine the weight of
the material transferred in tones, to weighing scales used during testing to measure the weight of
certain chemicals down to a few grams. The maintenance of every such device used to measure a
quantity falls under instrumentation maintenance. The main function here is:
• To ensure that the instruments are in proper working condition

• Ensure proper usage in a manner that doesn’t damage the instrument
• Calibration of instruments to increase accuracy and avoid errors

41
3.1.7 PLANT DETAILS AND PROCESS DESCRIPTION
3.1.7.1 Plant Area 100 – Feed Storage and Handling:
Phosphogypsum with free moisture content typically of 10% - 20% is delivered to a dump
hopper via the client’s front-end loader or other suitable means of material handling. The dump
hopper has the capacity of 20 tonnes and has a belt feeder at its discharge delivering feed materials
to a belt conveyor system that feeds the main feed bin located near the Calciner. The feed bin has a
nominal capacity of 30 tonnes and has a BIN EX feeder at its discharge. It is specially designed to
provide accurate and consistent control over the feed material rate to the calciner. Immediately
downstream of the Centrex feeder is the lump breaker installed at the Calciner feed chute. It ensures
that no lumpy materials enter to the calciner. Area 100 also incorporates equipment to allow the
recycling of waste materials from the Rapid Wall Plant.
3.1.7.2 Plant Area 200 – Rapid flow Calciner:
Wet feed is delivered via Plant Area 100 feed storage and handling system to the feed chute
on the Calciner expansion chamber. The free moisture of the material is quickly driven off by raising
the temperature of the solids to nominal bed temperature of 150 °C. The feed material is converted
from its di-hydrates form to an essentially hemi-hydrate form over the 40 to 60minute period it
remains in the Calciner.
The calcined product is discharged from the Calciner by the Product Discharge Screw and is
then transferred via materials handling equipment to Plant Area 300 for storage. The exhaust gas,
after leaving the fluidized bed of material in the calciner passes to the Bag house dust collector. When
operating with the Phosphogypsum as the feed material the fines collected by the bag house can be
recycled back to the calciner and the exhaust gas is cleaned to less than 30 mg/dry Nmᵌ, is exhausted
to the atmosphere via an Exhaust Fan and Exhaust Stack.
3.1.7.3 Plant Area 300 – Product Storage and Handling:
From the calciner plaster product is delivered to a product storage silo via a fully enclosed
bucket elevator and screw conveyor. The product storage silo has a capacity of 250 tones and is
designed so that plaster may be continuously recycled through the silo to improve the characteristics.
This is achieved by having a discharge rotary valve and screw conveyor to deliver plaster back to the
feed chute of the bucket elevator. This system allows fresh plaster from the Calciner to be mixed with
the recycled plaster from the silo on a continuous basis thus ensuring the homogeneity of the plaster

42
together with the full development of its setting properties. The silo discharges to an entoleter mill
and then to the Rapid Wall Plant with an alternative discharge to the Mixing Plant. The silo is fitted
with a bin vent to ensure that particulates emissions are restricted to within the required limits.
3.1.7.4 Plant Area 400 – Mixing and Bagging Plant:
The mixing plant is designed to mix, blend and bag off the various building products required
by the Building industry. The mixing process is a match process with a 3 minutes’ cycle time. A
measured quantity of re-circulated plaster product is fed from the bucket elevator into the hopper
(400BN-010). Measured quantities of chemical additives are automatically dosed into the weighing
hopper. Once all the products are loaded in the hoppers, all materials are dumped in to the batch
mixer (400-Mx-060). Product is mixed for approximately 2-3 minutes. Once the
mixing is finished, the finished product is packed into 25Kg bags using a semi-automatic bagging
machine, which fills the product into 25/kg bags. The bags are stitched and robotic palletized and
moved to the dispatch warehouse.
3.1.7.5 AREA 500 – Panel Making.
The panel production plant has 3 main components
1. The casting tables upon which panel is cast – in FRBL 6 Nos. A 1 to A3, B1 to B3.
2. The core puller, which inserts and pulls out the expandable plugs used to form cells or cavities
inside the panels – in FRBL 6 Nos. A 1 to A3, B1 to B3.
3. The crab which lays the plaster and glass fibre on to the casting table. in FRBL 2 Nos. A &
B.
3.1.7.5.1 Casting Table
The table 12 m x 3 m at a height of 1 m from ground is in horizontal position during the

casting process. When the panel has set, the table can be tilted to 90 deg using hydraulic cylinder and
the panel can be shifted to ACROBA forklift. The table surface is coated with an epoxy resin to
provide a smooth flat finish to the cast side of the panel. The casting table consists of:
• 3 rules which open & close pneumatically
• 2 pneumatically operated panel supports for preventing the panel from sliding off the table
when tilted to vertical position

43
• Wash bin to wash the roller & screed bar
• Screed bars for first & second screening
• Tamper bar for positioning the fibre glass in the rib of the panel
• Roller for rolling glass fibre into the plaster
• Side skirts to prevent plaster spillage through the rule apertures during the first pour.
3.1.7.5.2 Core Puller
The core puller carries the expandable plugs when they are not inserted in the casting table.
The core puller moves the plugs forwards & backwards on the rollers. The core puller can tilt the
plugs for easy greasing of the underside of the plugs.
3.1.7.5.3 Crab
The crab moves on rails over the length of the plant. Its home position is its loading / washing
position. The crab consists of:
• Plaster mixing bin with load cells to measure the weight

• Glass cutters
• On board air & water storage
• Laser distancing sensor for positioning of the crab
• Motor control centre of crab.
3.1.7.5.4 Panel Making Process
All the operations are done from a local control station having a Human Machine Interface (HMI)
and 4 local control stations are there 2 for each stream.
• Grease at all the tilting & moving points of crab & core puller.
• Clean the table well and apply grease or palm oil on the table surface.
• Check all the parameters are in the limit and ingredients are of full.
• Lock the crab to the bin mouth of batch hopper
• Open the slide gate and pour calcined gypsum to the mixing bin

44
• Pour all required chemicals manually to the bin
• Pour required water to the bin
• Start the mixing motor for mixing all of the chemicals for four minutes.
• Meanwhile fix the skirt in the table
• Move the crab to the table and pour the first lot mixture
• Immediately screed it with the first screed bar
• Spread the first layer of glass fibre over the screed plaster
• Roll it for two three times for insertion of the fibre inside the plaster
• Remove the skirt and immediately wash it.
• Start the insertion of core puller plugs
• After fully insertion, level the plug, expand it & down it.
• Down the core puller lock and retract it, so that all plugs will be detached
• Start Mixer for 2 minutes
• Pour the second layer of plaster
• Immediately screed it with the second screed bar
• Spread the second layer of glass fibre over the screed plaster
• Tamper it with tampering bar for insertion of fibre to the ribs
• Spread the third layer of glass fibre
• Roll it for two three times for insertion of the fibre inside the plaster
• Final finishing is to be done by the final screed bar
(All the above process will be completed within 20 minutes)
• The crab should be brought back to home position and thoroughly washed the mixer
• Plaster samples should be taken at the first & second pour for the initial & final Gilmore

45
• After the initial Gilmore (IG) time (about 20 minutes) forward the core puller and lock with
the plugs
• Withdraw the plugs back safely
• After the final Gilmore (FG) time (further 20 minutes) open all the side rules and remove all
waste materials
• Tilt the table to 90 deg.
• Shift the panel to the frame fixed on the acroba forklift
• Tilt down the panel and again clean it
• The panel should be taken to the drier
3.1.7.5.5 Process flowchart for gypsum panel:
Fig no: 3.1.7.5.5

46
3.1.7.6 Plant Area 600 – Drying Unit:
Finished Rapid wall panels are transported from Rapid wall plant to the frying room area.
The drying room consist of 2 drying chambers which hold 3 Rapid wall panels each. Once 3 panels
are loaded, the panels are pushed into drying chamber and the door is closed. The operator starts the
automatic drying cycle. The panels will be dry in approximate 1 hr. Panels are then transported to the
Rapid wall saw for cutting and dispatch.
3.1.7.7 Area 700 – Rapid Wall Cutting:
The Rapid wall panels will be transported direct from the drying room or from the storage
area into the tilt table of the saw. The saw consists of 12 cutting blades which are all computer
controlled. The panel size is entered into the PLC on a touch screen, including the window and door
openings. The cutting saw is fully enclosed and equipped with a dust extraction system, which
ensures a dust free operation. The cut panels are automatically transported onto two tilt tables.
3.1.7.8 Area 900 – LPG Storage and Fire Water Tank:
The LPG Storage Area consists of two 50 m³ LPG Storage tanks. Fire Water tank having a
capacity of 200 mᵌ of water is located near the LPG tanks. The water tank is designed as per explosive
inspectors as the company is using LPG fuel for calciner and drying of panels.
3.1.7.9 RAW MATERIALS
Plaster of
Gypsum putty Gypsum Gypsum panel
Sl. No Content Paris
( in kg ) Plaster (in kg) (in kg)
(POP) (in kg)
Calcined
1. 833 956 999 1600
plaster
2. Retardant 1 1 1
Calcium
3. 100 *
Carbonate
4. Mica 38

47
Polyvinyl
5. Alchahole 8 6
(PVA)
Cellulose
6. 5
(bermocil)
Wacker
7. 4
(Vinnapas)
8. Melment 5
9. Foam Maptor 2
10. Lime 4
11. White cement 3 2
12. Vermiculate 30
Methocell
13. 4
(Borocoll)
Retardant
14. (Dissolvine D- 50
50)
Grease (palm
15. 5
oil)
16. Glass roving 26
17. Water 1000
18. BS-94 4
*Calcium Carbonate 3.0 to 8.0 kg depending upon knife set, initial Gilmore and final Gilmore
obtained while formulations.
Table no: 3.1.7.9

48
3.1.7.10 ENVIRONMENTAL IMPACT
Environmental aspect of manufacturing process
Manufacture of gypsum panels and gypsum board basically involves three stage production
process, the first being calcination of gypsum, the second being casting of panel / board and the last
stage being drying of gypsum board or gypsum panels. In all the three stages of the production
process, there is no environmental pollution. During calcination stage, the calciner is heated by
burning the fuel oil and there may be little pollution angle. However, the recommended project is
based on calcined gypsum / hemihydrate gypsum normally known by the trade name of POP and the
process of manufacturing gypsum panel would be totally environment friendly. The drier unit for
drying of gypsum panels is based on hot air drying and there would be no pollution. The waste during
the production of gypsum panels would be very small in quantity however, this could be recycled.
Waste generated and mitigation measures
In the manufacturing process of gypsum panels, no solid, liquid or gaseous wastes are
generated. However, during casting of gypsum panels, there may be some waste in the form of
broken or defective panels. The material being gypsum, it could be easily recycled and as such the
project would be totally environment friendly.

49
3.1.8 TESTS AND MANUFACTURING PROCESS OF GFRG PANELS
The following are the tests conducted on GFRG panels and blocks as per the scope of
investigation after and at various stages of manufacture of panels: -
I. BEFORE MANUFACTURING
A. Test done on gypsum plaster:
i) Optimum moisture content Test
ii) Density
iii) Cube Test (Compression)
iv) Water absorption
II. DURING CONSTRUCTION
A. Test done on setting panel:
i) Initial Gillmore Test
ii) Final Gillmore Test
III. AFTER CONSTRUCTION
A. Test done on GFRG block:
i) Axial Compression Test
ii) Water Absorption Test
iii) Density Test
B. Test done on GFRG Panel:
i) Flexural Test

50
3.1.9 MANUFACTURING PROCESS OF GFRG PANELS
• Phosphogypsum which is a by-product of Phosphoric acid plant is calcined in calciner at 140-

1500°C at the rate of 15MT/Hr. of calcined plaster. This calcined plaster is stored in product
silo of having capacity of 250 MT.
• The plaster is then transferred to batch hopper by screw conveyors and through Entoleter in
wall panel manufacturing area.
• This area consists of 6 casting tables having dimensions of 3m x 12m, one crab having mixer
and glass roving delivery system is for delivering slurry and glass roving for three tables. The
chemicals are added in water and mixed and then plaster is added and mixed to form slurry.
• One layer of slurry is laid on table by the crab followed by a layer of glass roving. This glass
roving is embedded into the slurry with the help of screen roller.
• Another layer of slurry is poured followed by a layer of glass roving. This layer is pushed
inside the ribs with the help of tamping rod. Finally, a layer of glass roving is laid for the top
face of the wall panel.
• After getting final Gilmore wall panel is lifted from the casting table to ACROBA frame and
shifted to dryer for drying. The wall panel is dried at a temperature of 275°C for 60 minutes.
• After drying, the wall panel is either shifted to the storage area or on the cutting table. The
wall panel is cut as per the dimensions supplied by the customer and the cut pieces are
transferred to the stillage which are specially made for transporting wall panels.
• The liquid effluent generated during manufacturing process is recycled back in the system for
manufacturing of new wall panels.
• The solid waste which is generated while manufacturing wall panels is recycled back to the
calciner after crushing and separating plaster and glass roving in recycled plants.
• The above system is a batch process. Six wall panels can be manufactured in eight hour shift
per table. Similarity, 36 wall panels can be manufactured in eight hour shift with 6 tables.

51
Fig no: 3.1.9

52
3.1.10 ADVANTAGES & DISADVANTAGES OF GFRG PANELS
3.1.10.1 Advantages:
• A revolutionary low cost load bearing pre-fabricated walling system with broad construction
applications from individual domestic cottages to multistoried residential building. Products
from industrial gypsum plaster. Rapid wall has 1-hour fire rating when unfilled or a 4-hour
fire rating when filled with concrete.
• Rapid wall panels are 12m length, 3m height, 124mm thick and cellular in construction and
are manufactured in a molding process using glass fiber reinforced, water resistant gypsum
plaster.
• Also used as floor slab, in combination with RCC as a composite material.
• No need of cement plastering enabling considerable construction time saving.
• The formed cells can be used to accommodate building services such a plumbing and
electrical conduits and can be filled with insulation for increased thermal performance or
concrete for increased structural capacity.
• Rapid wall construction is resistant to almost all the potential damages caused by fire,
cyclone, hurricane, and earthquake; it is also rot, termite and sound resistant and is 100%
recyclable.
• Because of its low energy and environment credential rapid wall is particularly suitable in
areas where traditional building materials that have high energy usage, high carbon emissions
or cause degradation to the environment are no longer sustainable.
• Minimizes the use of cement, steel, brick and river sand which are the major sources of
greenhouse gases.
• For low rise buildings, a substantial energy saving of approximately 66% can be made
compared to RCC building.
• Rapid wall is quicker and easier to erect, projects are finished faster, freeing up investment
and development fund.
• The inside area and volume of room will be more as the thickness of the rapid wall is less
than conventional building.

53
3.1.10.2 Other advantages:
• Rapid wall panel provides a new method of building construction in fast track, full utilizing
the benefit of prefabricated, light weight large panels with modular cavities and time tested,
conventional cast in-situ constructional use of concrete and steel reinforcement.
• By this process, man power, cost and time of construction is reduced. The use of scarce
natural resources like river sand, sand, water and agricultural land is significantly reduced.
Rapid wall panels have reduced embodied energy and require less energy for thermo-
regulation of interiors. Rapid wall buildings thereby reduce burdening of the environment and
help to reduce global warming.
• Rapid wall also protects the lives and properties of people as these buildings will be resistant
to natural disasters like earthquakes, cyclone, fire etc. this will also contribute to achieve the
goal of much needed social inclusive development due to its various benefits and advantages
with affordability for low income segments also.
• Fast delivery of mass dwelling/ housing is very critical for reducing huge urban housing
shortage in India.
• In case of unfilled panels, the cavities in the panel give the cooling effect inside the room
which in turn reduces the energy consumption.
• The wall chasing for laying conduits for plumbing and electrical wiring can be avoided as the
pipes can be laid through the cavities. So the labor can be saved these works.
• The quantity of water used is less when it comes to curing and plastering purpose.
3.1.10.3 Disadvantages:
• Not be used for with circular or higher curvature.

• Clear span shall be limited to 5m for residential buildings, for nonresidential buildings, the
span shall be limited to as specified in Design manual.
• Conventional cement mortar does not get proper bond with GFRG panels.
• Transportation of panels to the work site is a bit costly.
• Crane service should be made available for the construction.
• The panels cannot be reused.

54
3.1.11 SALIENT FEATURES OF GFRG PANELS
• Fire proof:
Rapid wall has an outstanding fire-resistant properties making it an ideal building
material for the use in dwellings in fire prone areas as well as in apartment construction where
fire rated partly walls are required. Rapid wall is rated at one, two and four hours respectively
when empty, insulated and concrete filled.
• Earthquake resistant:
When used as load bearing shear walls Rapid wall exhibits superior ductile qualities
that make it safer and effectively stronger than un-reinforced masonry. Its mechanical
properties make rapid wall a superior earthquake resistant structural walling product for both
vertical and lateral loads.
• Water and rot resistant:

In an unsealed and uncoated state and after full immersion in water for 24 hours the
moisture uptake of rapid walls less than 5%(by weight) rapid wall is approved for use in wet
areas requiring only the application of the normal mandatory wet area membrane.
• Termite resistant:
Rapid wall panels are made of gypsum plaster and fiber glass. They are immune to
attack from vermin and termites. Rapid wall construction is devoid of any timber products
eliminating any risk of termite infestation for which there are no safe prevention methods.
• Good sound attenuation:

Whether insulated or concrete filled rapid wall has excellent sound attenuation
characteristics. Rapid wall can be used as structural party walls providing the basis of an
effective 55 STC sound barrier when lined with plasterboard on resilient mounts. A rating of
RW 55 can be achieved using plaster board lining on isolated studs on one side of the load
bearing rapid wall.

55
• Cyclone resistant:
Rapid wall, when concrete or sand filled is resistant to penetration by flying
objects so common in cyclones. Additionally, a simple tie-down system passing
through the rapid wall cells and into the foundation secures the roof against severe
uplift forces experienced in cyclones.
• Space savings:
At only 124mm wide, when compared to brick-veneer construction, Rapid wall
provides up to 10% more usable internal floor space of a building of comparable external
dimension.

56
3.1.12 COMPARISON BETWEEN CONVENTIONAL &
GYPSUM WALL BUILDING CONSTRUCTION
Gypsum wall Conventional

Materials used Savings in %
Building Building
1. Cement 15 tons 32.55 tons 50.6
2. Steel 1.80 tons 2.7779 tons 35.2
3. River sand 20 mᵌ 83.37 mᵌ 76
4. Granite metal 36 mᵌ 52.45 mᵌ 27.55
5. Bricks - 57200 -
6. Gypsum wall 500 sq. m - -
7. Water 50,000 liters 2,00,000 liters 75
143 sq. m (1539 154.45 sq. m

8. Built area 8
sq. ft.) (1662 sq. ft.)
9. Labor 389 man days 1200 man days 67.59
10. Construction time 22 days 120 days 82
11. Total weight 170 tons 490 tons 65
₹16.93 lakhs ₹19.94 lakhs

12. Construction cost (₹1100/sq. (₹1200/sq. 15
ft.) ft.)
13. Embodied energy 82921 kWh 215400 kWh 61.5
Table no: 3.1.12

57
4.1 FINANCIAL ANALYSIS
4.1.1 Turnover of the company for the previous four years.
# Financial Year Turnover Rs. In Crs.
1 2016-2017 21.01
2 2015-2016 20.03
3 2014-2015 4.26
4 2013-2014 1.03
Table no: 4.1.1

58
4.1.2 Financial performance of FRBL
year Turnover PBDIT interest depreciation PBT PAT

from
operations
2012-13 0.80 -2.93 8.39 4.85 -16.17 -16.17
2013-14 2.01 -2.48 9.36 5.68 -17.51 -17.51
2014-15 4.52 -2.27 9.27 10.40 -21.94 -21.94
2015-16 20.06 -1.66 8.83 10.21 -20.71 -20.71
2016-17 21.04 -1.85 16.99 10.27 -29.12 -29.12
Table no: 4.1.2
4.1.2 FINANCIAL PERFORMANCE OF FRBL

Turnover from operations PBDIT interest depreciation PBT PAT
20.06 21.04
16.99
8.39 9.36 9.2710.4 10.21

8.83
10.27
4.85 5.68 4.52

2.01
0.8
2012-13 2013-14 2014-15 2015-16 2016-17

-2.48 -2.27 -1.66 -1.85
-2.93
-16.17
-16.17 -17.51 -17.51
-20.71
-20.71
-21.94 -21.94
-29.12
-29.12
Fig no: 4.1.2

59
4.1.3 Operational and financial performance of FRBL since commissioning
Production details
Financial year SQM of panels Wall plaster Wall putty
produced production (in tons) production (in tons)
2012-13 7920 5.37 nil

2013-14 14922 40.450 2.325
2014-15 41076 66.80 Nil
2015-16 54972 61.33 Nil
2016-17 70956 55.75 Nil
2017-18 77976 21.12 Nil
Table no: 4.1.3
4.1.3 Operational and financial performance of FRBL since commissioning
SQM of panels produced Wall plaster production (in tonnes ) Wall putty production (in tonnes )
90000
0
80000
21.12
0
70000 55.75
60000 0
61.33
50000
0
40000 66.8
77976
70956
30000
54972
20000 41076
2.325
40.45
10000 0
5.37 14922
7920
0
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18
Fig no: 4.1.3

60
4.1.4 Wall panel and plaster sale details
Financial year Quantity of wall Quantity of wall Quantity of wall

panel(SQM) plaster(MT) putty(MT)
2012-13 7674.12 4.35 Nil
2013-14 12579.09 27.30 2.05
2014-15 24583.59 66.65 Nil
2015-16 57098.00 59.85 Nil
2016-17 65642.13 40.85 Nil
2017-18 71064.00 18.70 nil
(provisional)
Table no: 4.1.4
Wall panel and plaster sale details

80000
71064
70000 65642.13
60000 57098
50000
40000
30000
24583.59
20000
12579.09
10000 7674.12
4.35 0 27.3 66.65 0 59.85 0 40.85 0 18.7 0

2.05
0
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18
(provisional)
Quality of wall panel(SQM) Quality of wall plaster(MT) Quality of wall putty(MT)
Fig no : 4.1.4

61
5.1 TECHNOLOGY ADOPTION IN FRBL

The computer department with the introduction of first generation computers in finance to
meet the growing need for the speedy data processing. This multi system computer department is
constantly updating its hardware and software. Each department are interlinked with various
departments.
5.1.1 Technological Advancement
To manage solicitations of composts in the nation by indigenous creation, flexibility in game

plan sketching out and performing of excrement meanders is to an awesome degree fundamental. It
requires a solid innovative piece in coordinating, progress of process know how, point by point
building and capacity in meander association and execution of activities. The happening to I.T has
provoked stage that every affiliation, regardless of whether it is immense or little, government or
private has during the time started using IT in some shape or the other in their ordinary tasks. The
imagined by I.T in the manure division don't require any introduction. Only to give a few cases
workplaces where I.T is accepting a key part are H.R.D, Productions, Marketing, and Financials et
cetera.
• I.T Based System towards Increasing Efficiency in Management

• Online Production Monitoring System
• Online Distribution and Movement Information System
• Online Concession Scheme Monitoring System
• Manure Subsidy Payment Information System
• Application for Monitoring Energy Consumption Norms
• Manure Equated Freight Fixation Information System
• Electronic Import Management System
• Electronic Handling and Payments System for Imports
• Compost Project Monitoring System
• Data and Communication Technology (ICT) Infrastructure
• Site/Web Applications Hosting

62
• the Computer based systems has been delivered and completed for examination and
installment of proper marketing.
The five imperative online structures in task are
• Distribution and Movement Information System
• Production Monitoring System
• Concession Scheme Monitoring System
• Import Management System
• System for Import gypsum
• Handling and Payments System for GFRG panel.
5.1.2 OBJECTIVES OF TECHNOLOGY ADOPTION
1. To keep the management abreast of the fast paced technological changes in the field of
information technology and recommending timely enhancements of the IT resources in the
enterprise.
2. To project FRBL into the promising area of e-commerce as soon as the technology is adopted
in a big way in the Indian business sector.
Factors influencing the choice of technology
There are two distinct products viz gypsum panel products and gypsum board requiring
different technological inputs investment pattern and different marketing strategies. A number of
factors need to be taken into considerations while deciding the choice of favour of a process
technology. These factors mainly include
• Factors inputs
• Adaptability of technology
• Market findings viz. size of market, estimates about acceptability of the product and
recurrence of repeat demand
• Purchasing power of consumers and prevailing price spectrum
• Future projections of market demand

63
• Projections about the potential for exports

• Availability of skilled manpower and support facilities
• Availability of infrastructure and transport facilities
• Environmental considerations
5.1.3 FUNCTIONS OF COMPUTER DEPARTMENT
1. Planning and procurement of computer systems in all divisions

2. Software development and system support to all divisions
3. User training on computer awareness and applications
4. Process data and prepare relevant information for various levels of management for
appropriate and speedy decision making
5. Prompt and efficient services for meeting information requirements of the employer,
payment of wages and settlement of claims
6. Access control of data between and within department

64
6.1 SWOT ANALYSIS
SWOT analysis (or SWOT matrix) is a strategic planning technique used to help a person or
organization identify strengths, weaknesses, opportunities, and threats related
to business competition or project planning. It is intended to specify the objectives of the business
venture or project and identify the internal and external factors that are favorable and unfavorable to
achieving those objectives. Users of a SWOT analysis often ask and answer questions to generate
meaningful information for each category to make the tool useful and identify their competitive
advantage. SWOT has been described as the tried-and-true tool of strategic analysis.
Strengths and weakness are frequently internally-related, while opportunities and threats commonly
focus on the external environment. The name is an acronym for the four parameters the technique
examines:
• Strengths: characteristics of the business or project that give it an advantage over others.
• Weaknesses: characteristics of the business that place the business or project at a disadvantage
relative to others.
• Opportunities: elements in the environment that the business or project could exploit to its
advantage.
• Threats: elements in the environment that could cause trouble for the business or project.
6.1.1 STRENGTH
1. High capacity utilization.
2. Well-qualified and technically skilled manpower
3. No competitors
4. Unique natural resources
5. High capacity utilization.
6. High quality products.
7. Well-qualified and technically skilled manpower

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6.1.2 weakness
1. Need of heavy equipment’s
2. Low cost conception’
3. Labour problems
4. Changes in government policies
5. Lack of product line diversification
6. Lack of working capital resources
6.1.3 OPPORTUNITIES
1. real-estate opportunity
2. Opportunities for product diversification
3. Very large asset base
4. Less expensive alternative sources of energy and other inputs
5. Acquiring technology to utilize other available resources
6. Expanding production capacity to drive benefits of scale
6.1.4 THREATS
1. Unfavorable policy of the Government
2. Lack of product differentiation

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7.1 FINDINGS
1. All operations are done with the help of FACT and Rashtriya Chemicals and fertilizers
limited Mumbai.
2. Marketing activities are not carried out properly.
3. More than half of the employees in the company had an experience between 5- 10 years.
4. Among the employees most of them had educational qualification of degree.
5. Everyone had a mixed opinion on tools and resources.
6. Majority of the population agreed that they’re very much satisfied with their pay levels.
7. About the half of the population agreed to the fact that they had a very satisfied working
conditions.
8. Almost half of the population are satisfied with the ongoing training for their better
performance in the organization.
9. Almost 50% of population agreed that the performance feedback helped them to increase
their performance.
10. More than half of the employees are very much satisfied with their periodical increase in
salary and allowances.

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8.1 SUGGESTIONS
FURTHER RECOMMENDATIONS TO THE COMPANY
8.1.1 Increased attention to marketing

FRBL has introduced to the region technology that is fairly new and unfamiliar. The uncertainty
about GFRG panels is bound to discourage prospective customers in the general public from opting
for FRBL’s flagship product. Also, the major benefits of GFRG panels, as well as the very existence
of the product itself remains unknown to many people not associated with the field of construction.
I feel that by concentrating on marketing and investing in advertising, the company can effectively
communicate with their customers about the advantages of its products, increase product awareness
and significantly increase demand for their products.
8.1.2 Broader leave policy

Presently employees at the company are only allowed a maximum of 15 privilege leaves in a year. I
think the company can update their leave policy and allow room to include more paid leaves for
employees such as sick leaves in the case of an illness and bereavement leaves to mourn the loss of
a loved one. This will also improve employee morale.
8.1.3 Investing in equipment for optimal production

The company owns six GFRG panel casting tables which, according to an estimate from Rapid
Building Systems, can theoretically be used to produce as many as 144 panels in a day. However, the
actual number is nowhere close to this estimate because of the under-utilization of the casting tables.
While a greater number of panels can be produced, the company currently does not own enough
equipment to process them. Investing in the required machinery and equipment for processing
operations will undoubtedly help the company realize its production potential.
8.1.4 Targets and incentives to workers

Workers perform with greater efficiency when they expected to achieve a target. Greater productivity
can be achieved if the workers are set a minimum daily target in the number of panels they must
produce. Workers can be further motivated by being provided incentives for every extra panel they
make. This will encourage workers to spend their time in the company more fruitfully.

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9.1 LEARNING EXPERIENCE
Organization study conducted on FACT – RCF BUILDING PRODUCTS LIMITED gave

me insight on the actual working conditions and various situations in an organization. The
organization study made me to understand the practical working conditions in the organization and
helped me to understand the theories studied more clearly.
The interrelation of various factors that affect the organizational effectiveness are understood. Like
the effect of efficient payroll management and working conditions on the motivation of employees.
The employees have a secure feeling in the organization which motivates them and give them a self-
esteem to work in the company. Almost all the employees feel recognized in the organization.
The organization study gave me a new learning experience and helped me to understand the various
authority responsibility relations in the organization. The reporting patterns in the organization are
strictly maintained in FRBL.
Overall this organization study was a very effective learning experience for me. Organization study
conducted on FACT – RCF BUILDING PRODUCTS LIMITED gave me insight on the actual
working conditions and various situations in an organization.

69
10.1 COUNCLUSION
From the study findings and based on the objectives of the study, it can be concluded
that opportunity for advancement, appreciation for work done, salary promotion and other factor
were the main source of motivation for them. This is due to the service having greater percentage of
well-educated young and energetic people in the service with less people nearing the retiring age who
seek ways to improve their lot. On employee’s satisfaction it can also be concluded that as much as
opportunity for advancement, appreciation for work done, promotion and good relation with peers
etc... leads to their satisfaction. The kind of salary they receive, relation with their supervisor and
working condition, and others are major dissatisfaction. Again it can be concluded that, performance
determinates such one’s qualification, experience, working environment compensation packages, job
security among other combine with favorable motivational factor have effects on performance and
vice versa. Therefore, there is relationship between motivation and performance, and motivation does
have effect on employee performance.
A Better Cash Management will helpful in increasing the liquidity position and
solvency position of the company. From the analysis made in this study we can conclude that Cash
collections of the company should be closely monitored with the aim of accelerating cash inflows to
speed up the collecting of accounts receivables and Cash disbursements should be also closely
monitored with the aim of negotiating a reduction in cash outflows so as to reduce payments.
Operating Activities should be carefully planned with the aim of earning maximum operating cash
inflow.

70
REFERENCE
❖ Test reports by IIT Madras

❖ Construction manual of FRBL
Guide company:
Mr. M. K. Radhakrishnan Nair.
(General Manager)
BOOKS
JOHN STOREY: HUMAN RESOURCE MANAGEMENT
EDWIN B FLIPPO: PERSONAL MANAGEMENT
PHILIP KOTLER: MARKETING MANAGEMENT
WEBSITE
❖ http://www.frbl.co.in

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ORGANISATION STUDY AT FACT – RCF BUILDING PRODUCTS LIMITED

SANTHIGIRI INSTITUTE OF MANAGEMENT

SANTHIGIRI INSTITUTE OF MANAGEMENT

OBJECTIVE OF THE STUDY

1. To understand the organizational framework & it’s functioning.

Scope of the study

SANTHIGIRI INSTITUTE OF MANAGEMENT

1.1 INDUSTRIAL PROFILE

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2.1.1 WORLD SCENARIO

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2.1.2 INDIAN SCENARIO

SANTHIGIRI INSTITUTE OF MANAGEMENT

SANTHIGIRI INSTITUTE OF MANAGEMENT

2.1.3 Marketing network in India

2.1.4 Major Market Competitors/Players: Global Glass Fiber Reinforced

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2.1.5 MANUFACTURING DIVISIONS

2.1.5.1 UDYOGAMANDAL COMPLEX

2.1.5.2 COCHIN DIVISION

2.1.5.3 PETROCHEMICAL PLANTS

2.1.5.4 FACT ENGINEERING AND DESIGN ORGANISTION (FEDO)

2.1.5.5 FACT ENGINEERING WORKS(FEW)

SANTHIGIRI INSTITUTE OF MANAGEMENT

2.1.5.6 FACT RCF BUILDING PRODUCTS LIMITED (FRBL)

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3.1 ORGANISATIONAL PROFILE

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• Superior finished houses and building

3.1.2 MISSION, OBJECTIVE AND STRATEGIES

3.1.3 SIGNIFICANT FACTORS FOR SUCCESS

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3.1.4 FUTURE PLANS FOR GROWTH

3.1.5 ORGANIZATION CHART – DESIGN AND STRUCTURE

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Fig No: 3.1.5

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3.1.5.1 ADVANTAGES AND DISADVANTAGES OF ORGANIZATIONAL SRUCTURE

FRBL follows a ‘Departmental Line Organization’ structure. In a line organization model,

Fig No: 3.1.5.1 A

Line organizations can be of two types:

SANTHIGIRI INSTITUTE OF MANAGEMENT

Fig No: 3.1.5.1 B

Fig No: 3.1.5.1 C

SANTHIGIRI INSTITUTE OF MANAGEMENT

• This is the simplest model of organization structure to understand and execute.

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3.1.6 INDIVIDUAL DEPARTMENT AND ITS STRUCTURES, FUNCTIONS

3.1.6.1 FINANCE DEPARTMENT

The main functions executed by the Finance department are as follows:

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1.1.6.1.2 PROCESS OF FINANCE DEPARTMENT

1.1.6.1.2.2 Sales Accounting

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2. Recording the transaction

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3.1.6.2 PURCHASE DEPARTMENT

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• Conduct a follow up with the vendor before end of delivery time.

3.1.6.2.1 SYSTEM FOLLOWED FOR PURCHASE OF MATERIALS

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3.1.6.2.2 EQUIPMENT & SPARES SECTION

1. Purchase of Equipment & spares from India or abroad