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AN ORGANIZATIONAL STUDY ONKERALA MINERALS AND METALS

LIMITED, CHAVARA

Submitted in partial fulfillment of the requirement for the award

of the Degree of

Master of Business Administrationof Mahatma Gandhi University, Kottayam, Kerala

Submitted byJIJO THOMAS

ENTROLLMENT NO : COURSE CODE : CC21

Under the guidance of

Mr.Jayan

BSS INFORMATION TECHNOLOGY MISSION THYCAUD

MG UNIVERSITY OFF CAMPUS ACADEMIC CENTRE

ACKNOWLEDGEMENT

First of all I thank Almighty God who has been with me throughout

this endeavour and helped me in completing this project successfully.

I have great pleasure in expressing my sincere and grateful thanks to

my internal guide Mr. John for continuous guidance throughout this project.

I owe my sincere and grateful thanks to the external guide of KMML,

Chavara, Mr. Kochoommen (Asst. Personal Officer) for guiding me to this

project work.

Last but not the least I thank all my faculty members, all employees

and managers of KMML, my parents and my friends who have been a source

of inspiration and also helped me throughout this project.

Jijo Thomas

DECLARATION

I, Jijo Thomas hereby declare that the project work entitled An

Organisation Study at Kerala Minerals and Metals Ltd. is a record of

original work done by me under the guidance of Internal Guide, Mr.

Sasikumar. I also confirm that this project study has not been submitted

before.

CERTIFICATION

This is to certify that Mr. Jijo Thomas, Register No………….….. has

undertaken an organizational study on Kerala Minerals and Metals Limited,

Chavara and this report is the result of original work done by the candidate.

This project report is partial fulfilment of the requirements for the

award of the Degree of Master of Business Administration (M.B.A.) from the

Mahatma Gandhi University, Kottayam.

Signed by Counter Signed by

Project Guide Counter Coordinator

LIST OF CONTENTS

Sl.No. Title Page No. 1. Introduction to the study2. Aim, Objective of the Study3. Methodology4. Scope of the Study5. Limitations of the Study6. Industry Profile7. Certifications8. KMML Layout9. Company Profile10. Product Profile11. Vision, Mission, Objectives12. Organization Structure13. Functional Departments

Personnel and Administration DepartmentMarketing Department

Finance DepartmentProduction DepartmentMaintenance DepartmentMaterials DepartmentData Processing DepartmentFire and Safety DepartmentTechnical DepartmentResearch and Development DepartmentProject

14. SWOT Analysis15. Findings16. Conclusion17. Bibliography18. Appendix

LIST OF CHARTS AND FIGURES

Sl.No. Title Page No. 1. Organisation Structure of KMML

2. Organization Chart of Personnel Department

3. Organization Chart of Marketing Department

4. Organization Chart of Finance Department

5. Profit & Loss Account

6. Balance Sheet

7. Organization chart of production Department

8. Basic Processing Steps

9. Organization Chart of Maintenance Department

10. Organization Chart of materials Department

11. Organization Chart of data processing department

12. Organization Chart of fire and safety Department

13. Organization Chart of technical Department

14. Organization Chart of Research & Development

15. Organization Chart of project Department

CHAPTER – 1

INTRODUCTION

AN INTRODUCTION TO THE STUDY

Organizations play major role all over the world different organization

meet people needs and provides them with product, service, or both. Due to

globalization, the world has become a global village. This has very much helped

people to get their needs. Different firm play different role and has its own

importance. For my study, I have chosen Kerala Minerals And Metals Limited. It

is a well-reputed company fully owned by the State Government of Kerala.

The Company has indulged in the manufacturing of world class Titanium

Dioxide. It has been ranked among the top ten competitions in the world

producing its own product. In this study, I will be covering the organization as a

whole briefly. Hope I succeed and fulfill the study that I began with.

KMML is a world class producer of mineral sand based value added

products. In India, KMML is the only producer and distributor of rutile grade

Ti02. The company enjoys monopoly and faces no competition in India. But in

foreign markets, the company faces competition from a number of companies.

AIM OF THE STUDY

Our 30 days organization study is aimed to get an industrial exposure and to

understand the functioning of the organization in real life. It is intended to help

students to link the corporate management practices in an organization with the

theory

OBJECTIVES OF THE STUDY

1) To acquire knowledge about the company has learnt.

2) To get the knowledge about the functional and managerial aspects of

KMML.

3) To brief study of KMML.

4) To get the practical knowledge of KMML.

5) To analyze the functional position of KMML.

METHODOLOGY

There are 3 steps involved in an organization study. It can be described as

follows

1) The first step is the collection of all available information from various

primary and secondary data sources. Collecting information from

manuals, reports, articles etc, which were provided by KMML

regarding the origin, facilities available in the company and a brief on

its activities and functions.

2) Interviewing departmental heads and other staff for understanding the

activities of each department, structure and the roles played by each of

them.

3) Visiting the operational sites of various departments. The main aim is

to obtain a physical feel of the departments and observe the activities

performed by it, and it's important to the whole organization.

That is the study has been conducted using primary and secondary data.

The data were collected with the help of questionnaire; interview and observation.

Two sources are used for collection of data. Two sources of data are

1) Primary sources of data collection

1) Secondary sources of data collection

Primary data collections are

Observation

Personal interview

Secondary data are collected from

Company brochure

Company’s website

Business Magazines

SCOPE OF THE STUDY

For the organizational study I have chosen Kerala Minerals and Metals

Limited, It is a well-reputed public sector undertaking in Kerala State. In this

study, I will be covering the organization as whole briefly. From the

organizational study it has provided the first hand knowledge regarding the

functioning of KMML and gets more knowledge about its Marketing, Financing

and all over the functional areas of the organization. The organizational study

program has been highly beneficial to me. Through this study"

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

and functioning of an organization.

2) The student shall encounter practical situations which require immediate

solutions by relating numerous theories and concepts into practice.

3) Students can come with unbiased and impartial suggestions and

recommendations.

LIMITATIONS OF THE STUDY

1) The study was conducted within a period of stipulated time.

2) The workers were busy with their work and had little time available for an

interview or conversation.

3) The manager's time availability for discussion were limited and frequently

interrupted due to official commitments.

CHAPTER - 2

INDUSTRY PROFILE

INDUSTRY PROFILE

The world is rapidly shrinking with the advent of communication,

transportation and financial flows product development in one Industry are

finding enthusiastic acceptance in other industry. As the Industry, which is

manufacturing Industry, product definitely depends on the end user Industries.

Industry plays a significant sole in every firm. Industrial development has

been given on greater importance in Indian planning on account of Industrial

development. Industry is necessary in productivity, employment, national Income

and rate of capital formation in India witnessed large scale diversification India.

Now India occupies tenth place among the industrially developed countries

in the world.

TITANIUM DIOXIDE INDUSTRY IN INDIA

The Indian reserves of illmenite and rutile is expected to the around 60

million tones. The most important sources of illmenite in India are beach sands of

south. Maharashtra, Orissa, Tamilnadu and in Kerala is around 45 million tones.

There are about 20 million tones reserves in Orissa.

This information threw light in to the possibilities of new manufactures and

competitions in Titanium Dioxide pigment Industry in the Indian Market with the

increasing demand for the paints, rubber, plastic and printing inks etc. The arrival

of new manufactures will be more in the near future. This will ultimately results in

tight competition.

CERTIFICATIONS OF KMML

1) ISO 9001:2000

Certificate from Bureau Veritas Quality International (BVQI)

and holes certification of United Kingdom Accreditations Service (UKAS). The

United Kingdom Accreditation Service is the sole national accreditation body

recognized by government to assess, against internationally agreed standards of an

organizations that provide certification for testing, inspection and calibration

services.

and accredits certification from ANSI-ASQ National Accreditation Board

(ANAB) is the U.S. accreditation body for management systems, ANAB is a

member of the International Accreditation Forum and a signatory of the IAF

Multilateral Cooperative Arrangements (MCA) , ANAB ensuring accredited

certificates which are recognized nationally and internationally for good quality

management system.

2) ISO 14001:2004

Certificate from Bureau Veritas Quality International (BVQI)

and accredits certification of National Accreditation Board for Certification

Bodies (NABCB). NABCB is a member of International Accreditation Forum

(IAF) having Multilateral Recognition Arrangement (MLA) to certify ISO 14001

- Environmental Management System.

and holes certification of United Kingdom Accreditations Service (UKAS). The

United Kingdom Accreditation Service is the sole national accreditation body

recognized by government to assess, against internationally agreed standards of an

organizations that provide certification for testing, inspection and calibration

services.

3) OHSAS 18001:1999

Certificate from Bureau Veritas Quality International (BVQI)

The Occupational Health and Safety Assessment Series (OHSAS) specification

gives requirements for an occupational health and safety (OH&S) management

system, to enable an organization to control its OH&S risks and improve its

performance.

National and International awards conferred on KMML

National award for R & D efforts industry for the best research and

development efforts by department of Science and Technology(1992)

FACT MKK NAIR Memorial productivity Award 1993-94,94-95 for the

best productivity performance by Kerala State Productivity Council

Energy Conservation Award 1999in appreciation for outstanding

achievements towards energy conservation and management in the

category of large scale industries

FACT MKK NAIR Memorial productivity Award 2001-02 for second in

productivity performance by Kerala State Productivity Council 2001

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

first in productivity performance(Large Organization) by Kerala State

Productivity Council

Energy Conservation Award 2001 for conservation and management in the

category of large scale industries by Energy management centre Kerala

2001

Award for Revenue performance 2003 for the best performance by central

excise, customs Kollam Division 2003

Marketing campaign Award 2003 for best marketing campaign by Asia

pacific coating 2003

International gold medal for the Quality of the product and efficiency of

the company by Forum Kerala Lumpur Global Rating UK 2003

Special Export Award for export performance by chemicals and Allied

Export Promotion Council (CAPEXIL) sponsored by ministry of

Commerce Government of India 2002-03

EMPLOYEE STRENGTH

There are about 210 officers and 1122 workmen in KMML. The total

strength is 1332.

FUTURE PLAN

The company is studying the possibility of the productivity of more

economic titanium metal sheets. Recently, researchers established that the

Aeronautic Industry could use Titanium metal instead of Aluminium alloy or

Duraluminium coverings. The company is in the process of expansion and the

target expected is approximately as shown be1ow:

1. A new Mineral Separation Plant of capacity 2 lakhs tones per year

illmenite

2. A new Synthetic Rutile Plant of capacity 1.3 lakhs tones per year

3. A new 100 tones per day Oxygen Plant

4. Capacity enhancement of TiO2 pigment plant 1 lakh tones per year

POLLUTION CONTROL

KMML has elaborate Pollution Control system with respect to both water and

air pollution. The waste (acid) from illmenite Beneficiation Plant are sent to

Effluent Neutralization Plant (ENP). ENP consist of a Primary Neutralization

Tank (PNT) and Secondary Neutralization Tank (SNT) where it is treated with

caustic soda solution. The totally neutralized slurry from the SNT is pumped to

50000m3 capacity setting pond provided with impervious clay, polythene lining at

bottom side where the solids are settled. The dye solution from setting pond of

25000m3 capacity where the balance solids are allowed to settle. Then clean

water from the polishing pond meeting all specification stipulated by Pollution

Control Board authorities is pumped in to the Arabian Sea.

All gases from Chlorination, Oxidation, Illmenite Beneficiation Plant and

Acid Regeneration Plant are passed through scrubbed water or caustic solution to

absorb the toxic gases diluted with enough fresh air and only let out to the

atmosphere through tall slacks.

KMMLPlant Lay Out

NH. 47

Administrative Block Plants

FINANCE DEPARTMENT

MARKETING DEPARTMENT

PERSONAL DEPARTMENT

MATERIAL DEPARTMENT

ARP IBP

MAINTENANCE SHOP

RAW ILLMENITE GODOWN

STORE

SUBSTATION CANTEEN

OXYGEN PLANT

PPP UNIT

100/200

PPP UNIT

400/500

PPP UNIT

300

PPP UNIT

400/500

EMERGENCY BLOCK

ERS IRS

CENTRAL MECHANICAL REPAIR BLOCK

LAB

AIR COMPRESSING

BLOCK

COAL YARD

BOILER PLANT

CHAPTER 3

COMPANY PROFILE

COMPANY PROFILE

Kerala is blessed with rich and extensive mineral deposits. This deposits

stretch along the sea cost between Neendakara and Kayamkulam, a track

generally known as Chavara coast. This deposits stretch up to a distance of 18 Km

along the coastal strip and having a depth of 8m. The dark sands of Travancore

coast are rich in mineral deposits as Monazite, I1lmenite, Rutile, Zircon etc.

The company is located at Sankaramangalam near Chavara, Kollam a

coastal town 85 km north of Thiruvananthapuram. KMML is situated on the side

of NH-47 to about 285 acres in area. KMML has a worldwide reputation, a

socially responsible company with an eco-friendly image. The company derived

strength from its dedicated manpower and customer organization. KMML is fully

owned Kerala Government Enterprise. There are about 2000 employees in the

company at present that helps KMML to grow.

History of KMML

In the earliest periods of 19th century, precisely in 1909 a German scientist

named Mr. Schaumberg happened to discover traces of I1lmanite and monazite in

the black beach sands of Chavara coast in the Kerala state of India. Schaumberg

who was then working for an English firm got the sand exported to England. At

that time there was great demand for monazite because of its wide application in

the mantle making of gas lights. Continued efforts of German led to the discovery

of other minerals such as Rutile, Zircon, Silmanite etc in large volume in the sand

of Chavara coast between Neendakara and Kayamkulam.. The discovery of

monazite was quite accidental. Eventhough the German laid foundation for a

mineral separation plant at Chavara its activities were curtained by World War 2.

The first full fledged mineral separation plant in Chavara was established

by a private entrepreneur in 1932 as F. X. Pereira and Sons (Travancore) Pvt. Ltd.

They were involved in mining and separating mineral sands into various

constituents like Illmanite, Monazite, Rutile, Zircon, Leucoxene etc. During 1956

this concern was taken over by the state government and was placed under the

control of its industries department. The unit was converted as a limited company

with effect from 1.4.1972 in the name of "The Kerala Minerals and Metals Ltd".

Initially the company had only one unit known as 'Mineral Separation

Plant'. In 1974 the company received intent for the production of Titanium

dioxide (Ti02) pigment using Chloride process. In 1976 KMML registered its 2nd

unit known as Titanium dioxide Pigment Plant. Its construction started only in

1979 and total capital cost was Rs.144 Crores. The plant was commissioned in

December 1984. KMML became the first and only Integrated Titanium dioxide

plant in the world.

Even though KMML was commissioned in 1984 it was not able to operate

efficiently due to technical problems. Due to these problems the company has to

suffer an accumulated loss of more than the capital investment over a period of 8

years.

In the above circumstances it was in 1991 that the entire personnel of

KMML from top management to down to the lowest workers started to think

individually and collectively about the requirement of a 'Turn Around'. A strategy

was planed and implemented with the wholehearted support of the workforce

during the period 1991-1993.1t started to yield results and the Company attained

the break even level by 1993.From 1993-1994 onwards, the company started to

make profits and wiped out the entire accumulated loss within a few years and

repaid the long term loans. Thereafter, it is the story of success and growth.

INCORPORATION OF KERALA MINERALS AND METALS LIMITED

Kerala is a land enriched with heavy mineral deposit. This richness evolved

the formation of the company Kerala Minerals and Metals Limited (KMML).

It was all way back in 1909, when a German Chemist namely

Dr. Schaumberg noticed some brown sand particles sticking with coir exported

from India. He realized that the particles present were Monazite leading to the

discovery of vast deposits of Monazite in the black beach sands of

Manavalakuriclll in the east Travancore state. Late the Geological Survey of India

established the occurrence of Monazite and other earth minerals like limonite,

Rutile, Leucoxene, Sillimanite and Zircon.

Miss. F X Pereira & Sons (Travancore) Private Limited were the pioneers

who established the first full fledged Mineral Separation industry in Chavara area

way back in 1932 using the dry separation process. Gradually the company found

itself in financial crisis and in January 1956, the Kerala State Government took

over the company and continued under name F .X.P Minerals in 1972 the

Government renamed the name of the company as. The Kerala Minerals and

Metals Limited (KMML). At present KMML consists of two units, the Mineral

Separation Plant and the Titanium Dioxide Pigment Plant.

TECHNICAL COLLABORATION

The KMML entered in to technical collaboration with three

multinational corporations M/s. Kers MC Gee Chemical Corporation of USA.

M/s. Benedict Corporation of America. M/s. Woodall Dukham of UK respectively

for the above. The Metallurgical of Engineering Consultants India Limited

(MECON) a Government of India Undertaking did the detailed engineering

FUNCTIONAL DEPARTMENTS

ORGANIZATION STRUCTUREMANAGING DIRECTOR

GM PRODUCTION DGM P&A GM MARKETING

GM FINANCE

MAINTENANCE MANAGER

MANAGER

PROCESS

EMPLOYEES

EMPLOYEES

AGM

SENIOR ACCOUNTANT

ASST TO SENIOR ACCOUNTANT

ACCOUNTANT GRADE 1

ACCOUNTANT GRADE 2

DEPUTY MANAGER

EMPLOYEES

AGM

DEPUTY MANAGER

MANAGER

MANAGER WELFARE

ASST PERSONNEL

OFFICER

EMPLOYEES

EMPLOYEES

MARKETING OF FIRM

(DOMESTIC)

PURCHASING OF FIRM

ASST GRADE

TYPIST PEON

EMPLOYEES

DEPARTMENTAL STUDY

Like any other public sector undertaking KMML has separate departments

and separate executive heads for each department Departments are based on the

functional basis. Each department specializes in its own area of operation. The

various departments in the KMML are:-

1) Personnel & Administration

2) Marketing

3) Finance

4) Production

5) Maintenance

6) Materials

7) Data processing

8) Fire & Safety

9) Technical

10)Research and development Department

11) Project

1) PERSONAL AND ADMINISTRATIVE DEPARTMENT

Of all the factors of productions, man is by for the most important. It is a matter

of common knowledge that every business organization depends for its effective

functioning not so much on its material or financial Resources as on its pool of able and

willing Human Resources.

M J Jueius defines “personnel management as the field of management which

has to do with planning, organizing, controlling various operative activities of procuring,

developing, maintaining and utilizing a labour force in order that the objectives and

interest for which the company is established are attained as effectively and

economically as possible and the objectives and interest of all levels of personnel and

community are served to the highest degree”.

Workman Classification

Permanent employees

There are about 215 officers and 960 non technical staffs in the TiO2

pigment plant as permanent employees.

Employees engaged on contract basis

The employees worked on contract for a limited period of time on terms

and conditions fixed by the company. They are mainly engaged through

employment exchange.

Temporary or seasonal Worker

These workers are employed when the workload is more and seasonal

demand is high. They are dispersed when the work is over.

Casual Labour

They are employed from people who lost their land due to acquisition by

KMML. They are engaged first as casual workers and then absorbed as permanent

employees when vacancy arises.

Apprentice

Apprentice work for a period of 1 year as a part of training program as per

Apprentice Act.

Certain Recruitment Sources

o Internal Search

o Advertisement

o Employees Recommendations

o Employment Agencies

o Temporary Help Service

o Schools, College and Universities

o Professional Organizations

o Casual or unsolicited Applicants

o Other Sources

Recruitment procedure in KMML

1. The employment exchange compulsory notification of vacancies

Act.1959 stipulates that every establishment in public sector shall

before filling vacancy in any employment in the establishment in

public sector should notify the vacancies to the concerned employment

exchanges any failure to notify such vacancy is an offence punishable

under that Act. Therefore the chief executive of public establishments

shall notify vacancies to comply with the Act.

2. Recruitment to managerial and professional posts carrying a starting

basic salary excluding DA and other allowances of Rs 15000 / per

month and above shall be made by selection from the applications

received through sufficient advertisement in newspapers. The

candidate sponsored by the employment exchange shall be selected

from the applications received through sufficient advertisement in

newspapers. The candidate sponsored by the employment exchange

shall also be considered for selection .If the details are furnished by

the employment exchange, call letters are issued to the short listed

candidates for the interview or test.

3. Selection to all other post outside the preview of public service

commission shall be made from among the candidate sponsored by

employment exchange. In this case filling up of vacancies by

generating applications through advertisements in newspapers should

be attempted only after obtaining non availability certificates from

employment exchange.

4. Recruitment to vacancies should be made by committees set up by

board of directors with not less than 3 members and atleast 1 of them

being government representative.

5. In respect of direct recruitment the principles of reservations as

applicable to government appointments should be adhered to the

principles of communal rotations and laid down in Rule 15 to 17 of

the Kerala subordinate service Rules part II shall be followed.

6. No preferences shall be given to the apprentice of the undertaking

while making recruitment against permanent vacancies.

7. The practice of hiring persons on daily wages to man posts, which

can be called through employment exchange, shall be discontinued.

All existing vacancies should be anticipated and actions should be

taken to fill them. All amounts spent on hiring daily wage employee

shall be treated as irregular expenditure, which could be recovered

from the appointing authorities.

8. The instructions already issued by the government to these extend

they are contrary to the foregoing procedure will be cancelled from the

date of issue of the circulars.

Working Hours

The company works on shift bases. There are 3 shifts for plant and general

shift for Administration. The timing is as follows:

A shift

6 am to 2 pm

B shift

2pm to 10 pm

C shift

10 pm to 6 am

General

9 am to 5 pm

Stipulations

An employee has to report for duty at 9 am except the employee worked in

shifting times. He may enter the company after one hour and will not be allowed

to enter after his grace time. An employee entering after the grace time may losses

15 minutes salary / wage for the first 15 minutes and between 16 to 30 minutes

late he losses 30 minutes salary and between 31 min to 60 min late he losses one

hour salary or wage. This is closely watched by the time officer.

Welfare Activities

The provision regarding the Factories Act 1948 require the appointment of

a Fulltime Labour Welfare officer in every concern which employs 500 or more

employees. In KMML personnel and Administration department is entrusted

which covers the intellectual, physical, more and economic betterment of workers.

Aims of Labour Welfare Functions in KMML

Labour welfare facilities have the following aims:-

To overcome the monetary frustrations of the employees

To provide opportunities for development of individual talents

To provide assistance in solving personal and family problems of

employees

To offer facilities for the improvement of health of employees

Create conditions where employees are able to develop a broader vision of

life matters.

Bonus

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

Almost all employees of KMML get it.

Provident Fund

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

employer and employee have to contribute 12 percent each of the basic pay,

where 8.1 / 3% is transferred to pension fund.

Gratuity

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

continuous service of 5 years are eligible for gratuity calculated as follows

Gratuity = Basic Pay + Dearness Allowance * 15 * Number of years / 26

ESI

All the employees working here including casual and contract whose salary

does not exceed Rs 4500 per month are covered under this Act. As and when

employees are registered with ESI, they are entitled to get following benefits from

ESI

Sickness benefit

Disable benefit

Dependent benefit

Maternity

Funeral benefit

Rehabilitation

ALLOWANCES

The allowances provided by me company for its employees as followers

House rent allowance (HRA)

Workmen of me company shall be titled to HRA a 10 of me the basic

pay effective from 11-1-1997.

Conveyance Allowance (CA)

Upto Rs 100 given as Conveyance Allowance as per the

memorandum of agreement.

- Shift allowance

Employers wording in A, B, C shift are paid Rs 300 pm as shift

allowance

- Washing allowance

Washing allowance is Rs 60 pm. A least 5 days attendance is

necessary for this.

- Cash tending allowance

Rs 150- 180 pm is paid as cash handling allowance to employees

who look after the duties of the cashier

- Milk allowance

Workers haling 15 days of attendance are eligible for milk

allowance amounting up to Rs 90 pm

- Stitching allowance

Employees are given stitching allowance as follows uniform for

gents Rs 180. Over coast Rs 85

For bounce of upon Rs 40

- Chlorine tanker duty allowance

Rs 120-160 Rs paid as his allowance as this allowance

- Acting allowance

All workmen in titanium dioxide pigment ………..of the company

work in the ‘c’ shift will get night shift allowance of Rs 20/-.

- Education Allowances

Education allowance are granted to 2 children

Up to S.S.L.C = Rs 80pm

S.S.L.C = Rs 90 pm

Plus two = Rs 100 pm

Degree = Rs 120 pm

Professional course = Rs 140 pm

- Attendance Allowance

Employees for offering in attendance of 80-90% are given a bounce of Rs

100 greater than 90 are given a bounce of Rs 110 .100 % attendance are given 1

day wage and DA (Rs 200)

Employee PF and pension scheme

In KMML the employee in T 102 pigment unit are covered by the

employee pf miscellaneous provision act 1992. But the employees in the MSU are

not covered by this Act.12% of basic part and DA will be recovered from the

salary an equal amount is contributed by the company in their account 8.33 % of

the scheme is permitted to pension scheme and remaining 3.6% is permitted to

employee’s provident fund.

Housing loans

In KMML employees will get housing loan up to an amount of Rs

4,00,000 for construction of a new house and for extension of existion of existing

house Rs 2,00,000

Vehicle loan

The maximum amount by loan admissible for purchase of scooter motor

cycle to workmen in KMML will be Rs 50000.intrest will be changed of the

existing rate.

Non-financial incentives in KMML

Financial incentives are used to motivate employee for higher

works .however individuals have various needs, which they want to satisfy while

working in the organization .people at comparatively higher level of managerial

hierarchy attach more important to socio-psychological needs, which cannot be

satisfied by money alone. The following are me important non-financial infective

in KMML

LEAVE

Annual leave: -

In KMML employers are allowed 26 days by annual leave for every

completed calendar year by service,

Sick leave

Employers of KMML are eligible for 14 days sick leave every year and

half pay sick leave.

Casual leave

Casual leave of 14days for a calendar year will be allowed to all

employers, speed leave with wages, as presently given to heart patients are extent

ended to these workers shuffling from cancer, those undergoing kidney

transplantation and brain disease .those workers who undergoes sterilization

operation will eligible for all benefits available to the safe government employers

doing sterilization operation.

TRADE UNION

There are 4 trade union in KMML

1. Titanium complex employee unions (UTUC RSP CB)

2. Titanium complex employee congress (INTUC)

3. KMM titanium complex employee union (CITU)

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

WAGE STRUCTURE

Sl no Category of employee Existing scale of pay

Revised scale (Rs)

1 Workers grade employees, sweeper,

scavengers

3800-80-4040-85-4465-110-5015-

135-5825

4380-85-465-110-5015-135-5825-

150-6725

2 Security guards and peons

4380-85-465-110-5015-135-5825-

150-6725

4795-110-5015-135-5825-150-7325-170-9025

3 Bluer pink operator record keeper and store

attitude

4795-110-5015-135-5825-150-7325-170-9025

5150-135-5825-150-7325-170-9025-200-9223

4 Fireman drivers 5150-135-5825-150-7325-170-9025-200-9223

5420-135-5825-150-7325-170-9025-200-9625

5 Operation grade C with typist, steno,

accountant, assistant canteen super wiser

5420-135-5825-150-7325-170-9025-200-9625

5690-135-5825-150-7325-170-

9025-200-10025

6 Operators grade B receptionist, male,

nurse, etc

5690-135-5825-150-7325-170-

9025-200-10025

6275-150-7325-170-9025-200-

10825-215-11470

7 Senior grade assistant operation grade A

canteen supervisors, operational technical

6275-150-7325-170-9025-200-

10825-215-11470

7375-200-9025-

200-10350-250-

11135-250-11995

2) MARKETING DEPARTMENT

"Marketing is a social and managerial process by which individuals and

groups obtain what they need and want through creating and exchanging products

and value with others"---------Philip Kotler.

ABOUT KMML MARKETING

KMML have monopolistic in Titanium Dioxide (TiO2) pigment industry.

KMML is a public limited company that stands as a leader in production of TiO2.

The company has a large number of customers from all over the world and out

side.

The marketing department is engaged in selling of the company's product.

There is no separate department for sales and marketing management also

perform these functions. The marketing section keeps detailed report about

customers' product, product group control, dispatch and payment.

Products of KMML always maintain very high standard perfection,

achieving technical excellence in every phase of production to offer a wide range

of products for quality conscious customers.

At KMML, one factor comes before everything else is customers and

KMML go out of their way to ensure customers satisfaction. A team of motivated

marketing experts, who make it their business to find out the firm's views,

highlights customer's consciousness. Maintaining close contacts, they are

perfectly aware of customer's needs and are instrumental in development of new

products at price and offering.

MARKETING MIX

PRODUCT

The major products of KMML is Titanium Dioxide Ti02 (Rutile) pigment,

which is extensively, used as the main raw material by several industries such as

paint, plastic, rubber, printing, inks etc.

PRODUCT PROFILE

Titanium Tetra Chloride (synonym-Tickle) is produced as an intermediary

product in the production of rutile grade titanium dioxide pigment. Titanium Tetra

Chloride is extensively -used in the manufacture of Titanium dioxide pigment,

Titanium sponge or metal.

At present KMML produce six grades of Titanium Dioxide and they are:

I) Kemox RC 800:- It is recommended for printing inks, high gloss coating,

industrial coating, low abrasivity pigment for letterpress gravure polyamides

and exterior application where maximum chalk resistance is not required.

2) Kemox RC-800 PG:- It finds application in plastic requiring a blue white high

dispersion Ti02. Other areas of application are powder coating, polyethylene

films and vinyl sheet goods. It is used in most other common plastic or rubber

floor like applications.

3) Kemox Rc-822:- It is recommended for interior and exterior enamels and

lacquers for industrial and architectural purpose.

4) Kemox RC - 813:- It can be used in both interior and exterior low gloss and

flat paints and coating- both solvent and water based. It finds application in

interior flat wall paints, exterior low gloss or flat house paints, low gloss

maintenance pints, low gloss or flat chemical coating etc. Kemox RC-813 can

be described as a universal pigment for all coatings formulated at higher

percentage pigment volume concentrations.

5) Kemox RC-802: It is recommended for both interior and exterior applications.

This is also recommended for architectural and industrial paints-both solvent

and water based.

6) Kemox RC-808: It is recommended for automotive, industrial and architectural

finishes. It is also recommended for coil coating, radiation cured finishes;

emulsion paint systems powder coating, water borne coating and printing inks.

It can also be used for letterpress gravure, polyamides and other inks where

low abrasive pigments are required.

PRICE

Based on the variation in the market, the price of Ti02 is fixed by KMML.

The price is fixed by Chairman and Finance Secretary of the Government of

Kerala. The price is periodically revised due to market fluctuation.

Selling price of all grades ofTiO2 (Rutile Grade Pigment)

= Rs. 194000 + 16% Excise duty + 4 % CST

PROMOTION

KMML is a sole manufacture of rutile grade titanium in India. Hence there

is no much competition in the world market. Advertisement promotes the

company product.

ADVERTISEMENT

Advertisement are given in trade journals, industrial news, magazine used

by paying manufactures association, ink producer association etc. Advertisements

are also given in newspapers while appointing stockiest.

KMML subscribes "Paint India" the leading publication of the paint

industry and also "Mineral Market Reporter" which provides valuable information

about Ti02 at national and international level. The company also provides

discount scheme for its customers.

PLACE OF DISTRIBUTION

Marketing channel decisions are among the most important decision that

management faces. A company's channel decision directly effects every other

marketing decision. The firm's sales force and advertising decision depends on

how much persuasion, training and motivation the dealer need.

DISTRIBUTION SYSTEM

In KMML distribution is divided into two major categories:

I) Direct Supply:- Direct Supply to the actual customers who require seven

metric tones or more at a time. By this policy KMML, have estimated the

middlemen and it is easily adapted to any circumstances.

2) Supply through Stockiest:- Supplies to small sectors are done through

stockiest appointed by the company in all major cities. Company fixes prices for

its products and the stockiest are responsible to see the pelts at fixed once. All the

grades of Ti02 pigment produced in KMML come under the category of industrial

goods; Ti02 is mainly used in paint industry, textile industry, printing ink industry

etc. The total customers can be divided in to three types:

Major Customers

Stockiest

Other Customers

CUSTOMERS

Paint industry contribute large customers of Ti02-, other largest customers

include such industrial as paper, plastic, polyester. The bulk of the products in

KMML are consumed by industrial namely:

Asian Paints

Hindustan Latex and Revin

Shalimar Paint

Corlass Nerolac

Jenson and Nicholson

Sanderson Chemicals

Mega Meditex

Camlin

Plastic Chemix Industries

Berger Paints

Rajdoot Paints

SALES PROCEDURE

The sales section obtains the order from the customer; receives the pigment

in the form of cheque or DD, dispatches the quantity and send invoice to Financial

Department.

MAJOR COMPETITORS

The company has a monopolistic nature in TiO2 pigment industry in India.

The company has some competitors in the world market.

The main competitors in the world market are:

Dupont (USA)

Ishihara (Japan)

Hoitex (USA)

Millennium (Germany)

Henduk (Seoul, Korea)

Flectha Titanium Products (New Zealand)

Tofins (Netherlands)

EXPORT MARKET IN KMML

Even through KMML faces stiff competitors from multinational giants,

KMML receives a number of export orders through e-mail, fax and through

correspondence from customers abroad. KMML enjoys good reputation for

quality pigment in the international market. The company is exporting its products

in Korea, South Africa, Sri Lanka, Turkey, Dubai, China, Mauritius, UK and

Philippine. The company is now exporting 30% of their production. It has plans to

raise this to 50% by 2013.

MARKETING INFORMATION SYSTEM

KMML is a member of chemical and allied products export council.

Bulletins of chemical are regularly received by KMML and used to obtain the

latest trend of Titanium Dioxide demand for various customers both indigenous

foreign.

KMML subscribes "Paint India" the leading publication of paint industry

and also "Mineral Marketing Reporter" which provides valuable information

about Ti02 at national and international level.

KMML uses the services rendered by "India Marketing Bureau" which is a

marketing research as advised by KMML. For this KMML has to pay fees

annually for their research studies.

HANDLING CUSTOMER COMPLAINTS

The complaints received from the customers are registered by KMML, and

acknowledgment sent to customers. The details of the complaints are entered in

the customer complaints register. The particular about the progress of

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

MARKETING FUNCTIONS OF KMML

FUNCTIONS OF EXCHANGE

I) Buying and Assembling:- The extraction of raw materials of producing finished

titanium dioxide is done at Chavara where the factory is situated. Only certain

quantities of chemical and other raw materials is purchased from other units for

the production of titanium dioxide. Assembling of titanium dioxide is done at the

factory godown.

2) Packing:- Titanium dioxide is packed in 25Kg net weight in laminated multi

wall paper bags. After the chemical process is over, the materials is micronized,

the pigment is collected in bagging. The material is taken to a conveyor, here two

peoples are engaged in bagging and four are in stocking. It is then taken and

stored in pigment godown. 50 bags are packed in one pallet weighting 1.25mt.

3) Selling:- KMML sells titanium dioxide directly to its consumers and its

stockiest in bulk. The stockiest are appointed by fulfilling certain rules and

regulation of the company.

Functions of physical supply

Despatching: - After the order from stockiest and consumers, have been

received, the marketing department arranges the execution of orders by

way of dispatch. The mode of payment must be in the form of Demand

Draft payable at any scheduled bank at Kollam.

DOCUMENTS AND REGISTERS TO BE PREPARED FOR

DESPATCHING GOODS

a) Order Register:- Particulars of order received is entered in a registered called

order register. It shows the date, name of the party, grading of the products,

payment of cash and transport mode.

b) Delivery note:- This note is prepared before the goods are dispatched. It has

the KGST Rules 1963.

c) Delivery Chellan:- It is another important document which is prepared by the

dispatch section. It contains the details of goods, which are dispatched, name

of carrier, L.R.No, excise, gate pass note and date of dispatch.

d) Invoice:- Invoice is prepared at finance department and submitted to the

marketing department. It shows the name of the customer; date, grades of

goods, quantity purchase, price, destination, truck no etc.

e) Gate Pass:- It is prepared by the dispatch section. The company gate pass is

submitted before the security officer to take goods out of the factory premises.

f) Transportation and Insurance: Transportation and insurance are to be arranged

by the customer. The customer shall nominate their approved transporter.

DECLARATION UNDER KGST RULES 1963 FORM 27B

This is another document, which has to be filed up and made ready before

dispatching the goods. The form is addressed to the officer in charge of check post

and it must be signed.

MARKETING FACILITATING FUNCTION

1) Financing:- For carrying out marketing functions, KMML does not require

financial assistance in form at loans. The customers will have to make payment

in advance.

2) Risk Bearing:- Marketing of titanium dioxide pigment involves a number of

risks. Returning the goods by customer or damages at the time at storing in the

factory go down covers the risk factor. All the above risks are reduced to a

great extend with the help of insurance.

PRODUCTION AND SALES

The commercial production started in 1985. Following chart will show the

production and sales of titanium dioxide in past years.

Year Production in m/ton Sales in m/ton

2004-05 18042.000 16150.475

2005-06 15377.775 18011.500

2006-07 10115.650 6050.450

2007-08 14486.550 14707.550

2008-09 19317.000 21526.850

2009-10 21816.000 23501.000

2010-11 23521.01 25230.000

2011-12 24251.610 25851.000

MARKET RESEARCH ACTIVITIES OF KMML

MAIN OBJECTIVES

1) To find out the general impression of KMML products in the tit dioxide

marketing of India.

2) To ascertain whether demand exists in the Indian market. If we under the

proposed expansion of 6000 million tonnes.

3) Equivalent grade needed in market.

New product development

A new hydrophobic plastic grade pigment RC804 was developed by the

effort of inhouse R and D of our company. The trial production of the same,

approximately 100 times was taken successfully. The sample has been tested at

CIPET Hyderabad and found to be comparable to competitive international grade

pigment. Free samples were given to customers for their evaluation after which

bulk orders were received and the entire material could be sold out.

ORGANIZATION CHART OF

FINANCE DEPARTMENT

GENERAL MANAGER (FINANCE)

MANAGER (FINANCE) MANAGER (INTERNAL AUDIT)

DEPUTY MANAGER (FINANCE)

INTERNAL AUDIT ASSISTANT

A/C OFFICER CASH

A/C OFFICE

R SALARY

A/C OFFICER TAX

A/C OFFICE

R BUDGET

A/C OFFICER

BILLS

A/C OFFICER

SALES TAX

ASST A/C

OFFICER

ACCOUNTANT

ASST A/C

OFFICER

ACCOUNTANT

ASST A/C

OFFICER

ACCOUNTANT

ASST A/C

OFFICER

ACCOUNTANT

ASST A/C

OFFICER

ACCOUNTANT

ASST A/C

OFFICER

ACCOUNTANTNT

3) FINANCE DEPARTMENT

Finance is the lifeblood of every business. This is one of the most

important departments. In KMML a well organized finance department is

functioning. The finance position of the company can be understood by Balance

Sheet and Profit and Loss Account, prepared budget report according to the

company's goal is also an important function of the finance department.

Accounting Policy of KMML

1) Convention

The final statements are prepared under the historical cost convention in

accordance with applicable accounting standard that was relevant to

presentational requirement of the Companies Act 1956.

2) Fixed Assets

Fixed assets are stated at cost of acquisition and additional if any, less

accumulated depreciation, is provided at rates and methods prescribed in the

schedule XIV of the Companies Act on straight line method in respect of plant

and machinery and railway sliding belonging to TiO2 pigment unit. And written

down value method in respect of all the asset of the company. The depreciation is

calculated on the basis of Companies Act and for income tax audit it is added to

the profit and recalculated as per the audit rules.

3) Excise duty

Excise duty on manufactured is accounted for as and when goods. Are

dispatched is accordingly no provisions is made in respect of duty due on goods

manufactured, but not dispatched nor included in valuation of stock.

4) Gratuity

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

5) Inventory System

Work-in-progress is valued at the cost and stock of raw materials,

chemicals, fuel and stores are valued at weighted average cost on monthly basis.

ADJUSTMENT PER TRAINING TO EARLY YEARS

Adjustment arising out of errors or omission in the financial statement of

earlier years are prior period item, if the amount involves is Rs. 1,00,000/- or

more in each case.

FUNCTIONS OF ACCOUNTING SECTION OR FINANCE DEPARTMENT

The company maintains a clear and perfect accounting system. The main

activity of the Finance Department is Working Capital Management. Preparation

of Fund statement, cash Flow Statement, Balance Sheet. Profit and Loss Account

etc are also the activities of Financial Department. Secretarial work relating to

Board comes under the review of the Finance Department. Most of the activities

carried out by the Finance Department are pertaining to long term and ,short term

requirements of the operation, closing purchase bill, maintaining the account of

contractors, subcontractors, income tax deduction, salary discrepancy, dealing

with the financial institutions with imports and exports are also the functions of

the Financial Department. The Functions are:

1) Purchase are Recorded and Analyzed

The Finance Department of the company keeps the accounts of purchase of

spare parts, chemicals etc and accounting entries are made in the books of

accounts of the company on day to day basis, on the basis of bills and supporting

vouchers of each item. Each voucher is essentially numbered to avoid

discrepancy.

The company makes only miscellaneous purchase, as the main raw

material is mineral sand. The department analyses the details of purchases

afterwards.

2) Salary Section and Pay Division

The main function of the department is preparation and disbursement of

salary of officers, members of office staff and workers. The department keeps

salary register pertaining to each of the above sections, which facilitates charges

in salary due to granting of annual increments and deduction due from the salary.

The disbursing of salary is crediting the amount to the respective bank account of

the employee. The department is sending a detailed list of salaries; they have

arranged an A TM counter of ICICI Bank in the company compound. Certain

employees are paid by cheque. The department is maintaining sub ledgers for

deductions made in the salary such as PF, Insurance Premium Advance, Income

Tax etc. Another important function is computation of income Tax. Its deductions

and prompt remittance to IT Department.

3) Sales and Revenue Accountine :

The department is calculating and paying sales tax and central excise duty

to the concerned Government every year. The Government is earning a total

income of Rs.44 crores and Rs.14 crores by way of excise duty and sales tax duty

from the company.

4) Cash and Bank Transactions

The department does all the matters relating to the day-to-day cash

transactions. They receive and make payment for purchase and sales. The

company is allowed to collect cash up to the limit of Rs.20000/- is carried out by

cheque or DD as per direction of the Tax Authority.

5) Major Banks of the Company

ICICI, SBI, SBT, Standard Chartered Bank, Canara Bank, Central Bank

of India.

6) Costing

Annual budget and cost sheet is prepared at the outset of every year and on

the basis of the department fixes the floor price of each product of the company.

7) Calculation of Depreciation

The department calculates the depreciation. Depreciation is provided on

straight-line method in the case of plant and machinery of Titanium Pigment Unit

and written down value method in case of other assets of the company.

AUDITING

Auditors are appointed by the Government for a period of one Year. There

exist an external audit and internal audit.

Internal Audit :- These are part of the organization. There is an internal auditing

sector. They are in the charge of periodical audit.

External Audit :

They are as follows:

Statutory Audit

Account General's Audit Inspection Audit

Sales Tax Audit Income Tax Audit

Cost Audit

The company has registered yet another excellent result during the year

ending 31 March 2003. Production of the company for the year 2000-2005 is

given below.

Production Year Ti02 Pigment Minerals (Ilmenite)

2007-08 22815 10823

2008-09 25426 11647

2009-10 25612 17945

2010-11 25921 19138

2011-12 26859 21555

During the year 2011-2012 Company has achieved a record production of

25612 MT as against 25426 achieved during the previous year. Similarly, the

production in the MS unit has also increased from 10823 MT to 17945 MT. This

is mainly because of adding two more magnetic separators in the old plant.

Modernization of MS plant o\is nearing completion and when the same is

completed anticipated production would be 45000 to 50000 MT per annum.

FINANCIAL RESULTS

Financial results of your company for the year under review and previous year are given

below.

Particulars2011-12

(Rs. In lakhs)

2010-11

(Rs. In lakhs)

Total grossturn over 32854.54 32304.14

Gross profit before interest and depreciation 3079.60 2594.06

Profit before tax 2243.24 1782.05

Profit after tax and prior period adjustment 1121.07 1115.27

Transfer to general reserve 92.79 0.00

Capital employed 43851.73 43075.03

Internal generation 1885.43 1601.24

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31sT MARCH 2012

ParticularAs per 2011-2012 2010-011

Schedule (Rs. In lakhs) (Rs in Lakh)IncomeGross sales 32854.54 32304.14Less:Excise Duty 3280.05 3337.07Net Sales 29574.49 28967.07Other Income 0 1776.80 1483.14Stock Differential P 2959.55 1008.46Total 34311.02 31458.67EXPENDITUREManufacturing Expenses K 23859.88 22085.60

Payments and Benefits ofEmployees L 6783.54 6165.78

Administrative selling and M 583.00 613.23Other Expenses N 72.00 73.38Interest and Finance Charges R 764.36 738.63Depreciation 2243.24 1782.05Profit Before Tax Q 7.67 8.78Less: Prior Period items 158.50 0.00Doubtful advances 1773.27Profit after Prior Period 2077.07AdjustmentLess: Provision for Current 900.00 625.00Taxation

Less: Provision for 116.08 0.18Deferred Tax 56.00 33.00Less: Provision for FBTLess: Prior year adjustments S 0.00 25.48relating to Income tax 1237.15 862.61Profit for the yearProfit & Loss account Balance 23662.66 22800.05Brought Forward 24899.81 23662.66Amount available for 309.33 0.00appropriations 52.57 0.00Proposed Dividend 92.79 0.00Tax on DividendTransfer to Reserves 24445.12 23662.66

Surplus Transferred to BalanceSheet 39.99 27.89

Earnings Per Share(Basic and Diluted)Refer Note 27 Of Schedule T

Significant Accounting Policy U

Notes forming Part of Accounts T

BALANCE SHEET AS AT 31ST MARCH 2012

Particulars As perSchedule 2006-2007 (Rs. In lakhs) 2005-2006 (Rs. In

lakhs)

SOURCES OF FUNDS

Share holders funds A 3093.27

Share Capital B 40575.71 3093.27

Reserves & Surplus C 182.75

Deferred Tax Liability 39700.46

298.83

Total 43851.73 43092.56

Application of Funds

Fixed assets R 11746.84 10157.90

Capital work in progress F 9037.29

Investments G 17.60

Current assets H 22531.31 27130.94 5163.18

Loans and Advances I 18968.74 18975.96

41500.05 46106.90

Less: Current Liabilities D 5895.47 6577 .63 0.10

Less: Provisions E 12554.58 11775.42

18450.05 18353.05

Net Current Assets 23050 27753.85

Miscellaneous expenditure(To the extent not written offor adjusted)

J 0.00

Significant Accounting Policy U

Notes forming Part of T

Accounts 17.53

TOTAL 43851.73 43092.56

WORKING CAPITAL

Working capital refers to that part of the firm's capital which is

required for financing short teem or current asset such as cash, marketable

securities, debtors and inventories. It is a measure of both a company's efficiency

and its short term financial health. If the working capital is positive it means the

company is able to payoff its short term liabilities. If it is negative company is

unable to meet its short term liabilities with its current assets. If a company's

current assets do not exceed its liabilities then it may run into trouble paying back

creditors in the short term. So if a company working in the most efficient manner

(slow collection) it will show up as an increase in the working capital.

Year CurrentYear

Loans andadvance

Currentliability Provision Working

capital

2009-10 29187.84 23718.91 4183.87 16521.69 32201.19

2010-11 127130.94 118975.96 16577.63. 111775.42 27753.85

2011-12 122531.31 12004-05 129187.84 112554.58 123050.00

ORGANIZATION CHART OF

PRODUCTION DEPARTMENT

DGM PRODUCTION

AGM

PLANT MANAGER

DEPUTY PLANT MANAGER

PROCESS ENGINEERS

ASST PROCESS ENGINEERS

ASST PROCESS ENGINEERS

OPERATORS

WORKERS

OPERATORS

WORKERS

4) PRODUCTION DEPARTMENT

KMML always maintain high standard of perfection by achieving technical

excellence in every phase of production. Catering to strict guideline, KMML

offers a wide range of products for quality conscious customers. Their products go

in to the manufacture of variety of products used in every day life. Paint material,

facial creams, tablets, newsprint, rubber products, cosmetics and printing inks all

contain TiO2.

This department undertakes activities and decision regarding the

production work. Deputy General Manager (production and maintenance) controls

the activities of the department. Production of TiO2 is carried out in lot wise with

specific lot number. Each lot contain 15 MT of TiO2 samples are collected from

production at specific intervals and examined thoroughly in the laboratory or the

company. If any defect is identified, then the lot is considered as inferior quality. .

Mineral separation plant (MS unit) and TiO2 pigment plant (TP unit) is

two independent production units in KMML. The TP unit is divided in to three

plants.

Illmenite Beneficiation Plant

Acid Regeneration Plant

Pigment

MINERAL SEPERATION PLANT

The MS plant was originally established in 1932 in the private sector.

Several machineries were added in the course of time. This plant situated by the

side of the open mines, does the separation of the minerals from the beach sand.

The raw sand is first concentrated in spiral separation to enrich the heavy mineral

content. The wet concentrate is then dried in fluidized bed drier and then fed to

the dry separation plant. Magnetic separation and HT separation separate different

minerals. The plant also separates Rutile and Zircon from the sand.

TITANIUM DIOXIDE PIGMENT PLANT

TiO2 Pigment manufacturing process of KMML based on chloride route, the

process consist of following steps.

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

Beneficiation)

Regeneration of spent Hydrochloride acid for minimum pollution.

Conversion of beneficiated illmenite to TiO2 pigment

ILLMENITE BENEFICIATION PLANT

Here the raw illmenite containing 58-60% TiO2 is beneficiated to 90%

TiO2 content. The beneficiated illmenite is the raw material for the pigment

production plant. The ferric oxide in the raw illmenite is subjected to high

temperate of 8500c. The reduced illmenite then cooked and sent to digesters

where it is leached with 1820% HydrocWoric acid. The spent leach liquor is sent

to storage tanks. The leached illmenite after washing and filtering is calcined to

get beneficiated illmenite.

ACID REGENERATION PLANT

The spend leach liquor from the pre concentrator is processed in to the

spray roaster in which the liquid spray entering the furnace is heated by the

burning oil. The spend liquor then decomposes to metallic oxides and

hydrochloric acid. The hydrochloric acid vapour is first cooled in pre concentrator

and then absorbed in the wash liquor generated in the IBP to get 18% HCI which

is recycled back to IBP. The unobservable gases are scribbled with water before

venting to the atmosphere. The metal oxide consisting of mainly iron oxide are

slurred with water and routed to the slurry panel.

PIGMENT PRODUCTION PLANT

The pigment production plant has three units:

1. Chlorination plant

2. Oxidation plant

3. Surface Treatment and Pigment Finishing Plant

CHLORINATION PLANT

This unit beneficiated illmenite from chlorinated as reducing atmosphere

to produce Titanium Tetra Chloride (TiCI4). Chloride reacts with Titanium

Chloride and other metallic oxides. Beneficiated in the illmenite in the pressure

petroleum coke at a temperature of 800-900c in fluidized bed chlorination to

produce chlorides are condensed and purified to obtain pure TiCl4liquid, which 4s

stored in the storage vessel.

OXIDATION UNIT

In this unit raw pigment grade TiO2 is produced by reacting pure TiCl4

and oxygen with at a temperature of about 1000c in a reactor after preheating the

TiCl4 in a pure heater having suspended in code tubes to carry the Titanium

Chloride vapour. TiO2 raw pigment obtained for this unit is scurried with water

pumped storage tanks for further processing in the pigment-finishing unit, the

chlorine is liberated back to the chlorination unit.

Oxygen and chlorine are required for oxidation and chlorination.

PIGMENT FINISHING UNIT

The unit-dispersed slurry from oxidation unit is passed through the

different subsections of the unit via, sound milling and classification treatment

filtration, drying, micronisation, scrubbing, cooling and bagging. In the treatment

section chemicals are added. Give a coating to the pigment is reduced to two

microns to be micronisation treatment. The hot micronised pigment is cooled and

pneumatically conveyed to the final storage bin, this product is then bagged in

paper bags of 25 kg each stacked on woolen pallets (40 bags/pallets) and

dispatched.

AIR SEPERATION PLANT

This unit has been designated by Mis Lair Linde, France and supplied

through M/s BHPV Ltd Visakapattanam. The Oxygen and Nitrogen are required

for the process in the Oxidation and chlorination unit. This plant has a capacity to

produce the following.

1 Gaseous N2 -1500 Nm/hr (50 MTD) 99.8% purity

2 Gaseous N2 -1800 Nm/hr (50 MTD) 99.5% purity

3 Liquid O2 - 37.5Nm/hr (2.5 MTD) 99.5% purity

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

IRON OXIDE BRICKS PLANT

An iron oxide brick is a building material produced KMML. The materials

used for the production of iron oxide bricks are:

1. Iron oxide

2. Lime

3. Cement

4. Riversand

5. Sodium silicate

The company has been facing a problem in the waste disposal areas. This

problem is mainly connected with the disposal of iron oxide slurry, which has

been coming outside from acid regeneration unit as a waste. In order to dispose

the iron oxide powder the company started to produce the iron oxide bricks in the

plant. At present the company is using this product for its domestic purpose such

as constructing compound wall, floor etc.

5) MAINTENANCE DEPARTMENT

The maintenance department of KMML can be grouped in to Electrical,

Mechanical and Instrumentation section. The Joint General Manager

(maintenance) is the top authority.

1. Electrical section:

This department is under the control of assistant general manager

(Electrical). It is the function of the department to ensure the flow of electricity

through out the company.

2. Mechanical section:

This department is under the control of assistant general manager

(Mechanical). Function of the department is to ensure the easy working of

machines. The company is doing periodical shutdown. to carryout necessary

maintenance and servicing of the plant.

3. Instrumentation:

Assistant General Manager (Instrumentation) is the apex authority of this

section. The section inspects safety ness of valves, mechanics etc. and working of

instruments. A statutory body occasionally visits the company to check the safety

of the plant.

4. Civil:

Manager (civil) controls the activities of this section. They undertake the

functions relating to implanting new machinery etc.

ORGANIZATION CHART OF

MATERIAL DEPARTMENT

DEPUTY GENERAL MANAGER MATERIAL

MANAGER MATERIAL

PURCHASE STORE

PURCHASE OFFICER

(INDIGENOUS))

PURCHASE OFFICER (IMPORT)

ASST PURCHASE OFFICER

STAFF

ASST PURCHASE OFFICER

STAFF

STORE OFFICER

STORE OFFICER

(INVENTORY CONTROL)

ASST STORE OFFICER

ASST STORE OFFICER

(INVENTORY CONTROL)

STAFF STAFF CHARGE MAN

STAFF

STAFF

6) MATERIALS DEPARTMENT

All functions relating to purchase and storage of materials for the company

is carried out by this department. This department is headed by the Deputy

General Manager (materials). There is around 27000 items of raw materials in

KMML. The functions of material department can be grouped in to three:

Purchase

Storage

Inventory control

PURCHASE SECTION

Purchase can be broadly classified as

Purchase made in India, i.e., indigenous purchase

Purchase made from foreign countries

Cash purchase i.e., up to Rs2000/-with the permission of unit head

Local purchase. i.e., up to Rs25000/-this arises in the case of emergencies

and purchase can be made from approved.

TERMS OF PAYMENT

1. Direct payment

2. Through bank

3. Advanced payment

4. Letter of credit

PURCHASE FUNCTIONS

Purchase of materials is an important function of an industry. The

procedure of purchase is as follows:

1. Purchase request: - The department or officer in need of material has to place

his request in a purchase requisition form. In case of raw materials, it is done by

the inventory control section. The purchase requisition is prepared in triplicate.

The original copy of it is kept by storekeeper and the other is send to the

authorized executive. The purchase request must be approved by the concerned

department head.

2. Stock verification: -On received the purchase request the storekeeper checks

whether the materials required is available through the store. If the materials are

out of stock, the storekeepers inform the purchase section through and indent

form.

3. Selection of suppliers: - The next function is to select the supplier to whom the

order is to be sent. The company places a public tender notice for the procurement

of raw materials. On the basis of the notice the vendor submit the tenders. Tenders

have two parts:

Technical bid and commercial bid:

The tender committee opens the tender and verifies the technical bid

and if they are satisfied with the technical bid i.e., with the quality of materials,

they opens the commercial bid, the tender committee then prepares a comparative

statement and accept the lowest price quoted Quotation. Usually, a contract for

one year is made for the supply of raw materials. To avoid risk of the irregularities

of the supply, the company appoints more than one vendor. In case .of spare parts

the enquiry is send to the vendor for, the vendors list of company and the apt

vendor is selected on the basis of tenders. The vendor list contains the name .and

address of vendors and with specific items.

4.Purchase order: - after deciding the supplier, the purchase officer of KMML

has to place a purchase order. The purchase order is written authorization to the

supplier to supply the particular materials. The materials are to be supplied

according to the terms and conditions of the purchase order. In KMML five copies

of purchase order is prepared.

The original is send to the supplier.

Second copy is send to the material receiving section

The third copy is send to the person who has placed the purchase

requisition

The fourth copy is send to the Finance department for future reference for

payment.

The last copy is kept in the department itself.

5. Inspection of 200ds and quotation reception: - On receiving the materials

from the vendor, a visual inspection is conducted. If there is any discrepancy

between the party advice copy and received copy, a discrepancy is prepared and if

there is any damage, a damage report is prepared.

Items below Rs 500/- call for single quotation. Items above Rs 500/- and

below Rs 50000/- are call for minimum three quotations from important

manufactures, dealers and stockiest. Items above Rs50000/- call open tenders.

STORE SECTION

Store section deals with:

Receiving the materials

Inspection of materials

Storage and presentation

Proper classification and codification of materials ~ Materials handling

Issue and dispatch

Stock records

Store accounting

Stock taking

STORAGE FUNCTIONS

Various documents are prepared by the store section for the proper

functioning of the department. The documents maintained are as follows:

1. Stores inwards book: - On receiving any materials to the store, it is entered

in a document called stores inward book (SIB)

2. Inspection of 2oods: - On receiving any materials and preparation of SIB

inspection request is send to the concerned technical office for technical

evaluation and reports are prepared on this basis.

3 Store received note: - After the preparation of SIB and inspection of goods

or materials, Stores Received Note (SRN) is prepared. This is the document

showing that the, materials received is accepted and payment can be made for it.

The SRN is sent to the Finance -department for payment. Four copies of SRN are

maintained in KMML. Usually the company gets a credit facility for 45 days.

4. Materials issue note: - Any material is issued from the store only after

receiving a material requisition or Material Issue Note (MIN). MIN contains all

the details regarding the material as well as the indenter.

5. Stock transfer note: - For transfer of materials between store or section or

contractors, for transfer of materials between store and section prepared, it

contains details such as material code, cost center, material description, unit and

quality. It should be mentioned that from which section and to which section is

the transfer taking place.

6. Material return note: - Some times materials issued from the stores may

be returned. In that case Material Return Nate (MRN) is prepared. It contains

details such as the name of department from which the material is returned, value,

quality, code, unit, present balance and reason for return.

BIN CARD

BINCARD is a document attached to bin and it contains the quantities

details of the materials received, issued and closing balance. In addition to this, it

indicates information regarding different stock levels like minimum level,

maximum level, recorder level etc coded number and name of materials.

INVENTORY CONTROL SECTION

Proper inventory management is necessary to provide and maintain good

customer service. It enables smooth flow of goods through the production process.

It is important as it provides protection against the Uncertainties of demand and

supply and also performing the various production operations economically and

independently.

Materials purchased for month is analyzed and an issue price is fixed for

the month. The company follows weighted average method.

ORGANIZATION CHART OF

DATA PROCESSING DEPARTMENT

DGM (DATA PROCESSING)

AGM (DATA PROCESSING)

MANAGER (DATA PROCESSING)

SOFTWARE ENGINEERS

ASSISTANTS

7) MANAGEMENT INFORMATION SYSTEM

Management Information System (MIS) is under the supervision of the

data processing department. Assistant General Manager (EDP) is the top authority

of the department. There are 70 personal computers in the company. 53 personal

computers in the company are in local area network. Company is having 10 Mega

Bytes personal computers back borne copper cabling. It has four signals:

1. Stores

2. Plant technical service

3. Illmenite Beneficiation plant! Acid regeneration plant

4. Pigment processing unit/laboratory

There is a direct connection from IBM server to Purchase, Finance,

Marketing and Personnel department. The entire Information Technology

activities are monitored by Electronic Data Processing (EDP) section. KMML is

using Oracle Related Database management system at backend and Power Builder

as front-end. An integrated online application module developed in power builder

is being used among finance, purchase, stores, marketing, personnel and

production departments. The database is fed to the system by each department,

which is required to generate various Management Information Systems to the

management. A strict security control is incorporated in the operations of various

modules.

ORGANIZATION CHART OF

FIRE AND SAFETY DEPARTMENT

DEPUTY GENERAL MANAGER

FIRE AND SAFETY

ASST GENERAL MANAGER

FIRE OFFICER SAFETY OFFICER

LEADING FIREMAN

FIREMAN

PLANT ENGINEER

SAFETY INSPECTOR

8) FIRE AND SAFETY DEPARTMENT

Fire and safety is a main department of KMML. It manages the process of

giving security to the employees by giving successful training and giving license

to employees and machines. The sections under fire and safety are:

1. Employee details managing : - In this section the details of the employees

are identified by separate employee codes. Here in employee code, employee

name, designation, date of birth, date of joining and qualifications are recorded.

These section supplies the details of employee to another section.

2. Employee training: - All the employees are trained for the successful

running up of KMML. The details of training is recorded when they gives each

training. Employee code, serial number, date of training, course and remark are

recorded. When an accident occurs the details of the training given to the

employee is produced.

3. Employee accident: - This section handles the details of accident occurs to

the employee. Employee code, serial number, accident data, description of

accident, the body part which was injured, unsafe condition or unsafe act, whether

lost time accident or not lost time accident, the days lost are recorded.

4. Expo- Petr o-License: - This section stores the details of the license

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

to be renewed after the validity is lost. This section stores the serial number, item

name, license number, tag number, last test, test type etc.

5. Lifting machines and tackles: - There are different lifting machines in

different location. These machines have to be tested and if any defect it is stored.

The machines are given a hoist no., location, last test, tested by, defect, next test

and remarks are stored.

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

the substance of high pressure such as LPG, CHLORINE etc. It is very difficult to

handle these types of machines. It needs high security and to confirm whether the

equipment is running smoothly. It contains serial no., section, pressure vessel, last

test etc.

7. Mock-drill: - It is a section contains trained person to maintain the

security. If any accident occurs, the help of this person is supplied and reduces the

complexity of accident. An accident controller is the head of this section.

ORGANIZATION CHART OF

TECNICAL DEPARTMENT

JOINT GENERAL MANAGER (TECHNICAL)

ASST GENERAL MANAGER (TECHNICAL)

MANAGER (LAB)

DEPUTY MANAGER (LAB)

SENIOR SCIENTIFIC OFFICER

MANAGER R&D

DEPUTY MANAGER (TECNICAL)

SCIENTIFIC OFFICER

ASST SCIENTIFIC OFFICER

LAB TECHNICIAN

DATA COLLECTOR

STATISTICIAN

9) TECHNICAL DEPARTMENT

Assistant General Manager (technical) is the head of this wing. This wing

functions as a third agency to the production and maintenance department. The

technical wing takes charge to research and development, Quality control,

Laboratory and technical services.

10) RESEARCH AND DEVELOPMENT

KMML maintain a fully equipped research and Development facility in the

area of Pigment and paint technology with a view to establish world- class

products and competitiveness. This excellent facility undertakes research,

development and product improvement. Scientists and Engineers continuously

pursue innovative technologies in the area of TiO2 pigment, quality improvement

and other allied products. The technical and sales service wing extends all helps to

customer in the field of applications and users.

KMML's Research and development has achieved following tasks in recent

times:

1. Developed new grade RC-802 with excellent balancing properties of glass

DGM PROJECT

MANAGER PROJECT

DY MANAGER PROJECT

PROJECT ENGINEERS

ASST ENGINEERS

DRAWING OFFICERS

and weather ability.

2. Successfully developed an improved process of oxidation plant.

3. Developed know how to convert iron oxide waste to bricks used for

construction.

4. Developed grade RC- 808, special grade for automotive coating.

The following works are on progress:

1. Developing a grade suited for thin film plastic application.

2. Management of solid effluent

ORGANIZATION CHART OF

PROJECT DEPARTMENT

11) PROJECT DEPARTMENT

Joint General Manager (Project) is the head of the wing. This wing is

engaged in the expansion program of the company. They are engaged in the

building up of new products etc. they also decide up on the future plans of the

company.

Some major projects on which they are working upon include:

1. A new MS plant of 2 lacks tones illmenite capacity per year

2. A new synthetic rutile plant of capacity 1.3 lacks

3. A new 100 tone per day Oxygen plant

4. Capacity enhancement of Ti02 plant in to one lacks tones per year.

UTILITIES

Assistant General Manager (utility) is the head of this department. The

utilities consist of steam, compressed air and water. Two boilers having a capacity

of 33 tonnes/hr each and one package boiler of capacity 8 tones/hr supply the

steam. The compressed air for plant and instrument used is supplied at a pressure

of 8 kg/cm2. There are four tube well pumps supplying water treatment plant.

SWOT ANALYSIS

S-STRENGTH

1. KMML is the only company in India producing Rutile grade Titanium

Dioxide.

2. Constant up gradation of technology.

3. Raw materials are found in. nearby areas

4. Availability of cheap and best quality raw materials. i.e. Mineral sand

consisting of illmenite, Rutile, Zircon etc.

5. The only integrated plant in the world having mineral separation plant,

synthetic rutile plant, Titanium dioxide plant and all are closely located in

one complex.

6. Profit making public sector undertaking with a total capital investment by

the government of Kerala.

7. The company has achieved a break through in the export market. During

the financial year 2011-2012 the company has earned the maximum

foreign currency among the chemical factories of public sector

undertaking in the state.

8. Technology perfected by internal research and development efforts.

9. Technological collaborations with the Russian Mining Company

ROSSBORN for the production of Titanium Sponge.

10.The proximity of infrastructure facilities such as seaport, Railway station

and International Airport is one of the greatest strengths of the company

W - WEAKNESSES

1. Lack of sufficient land for expansion projects and storing or disposal of

hazardous waste.

2. Poor quality power and lack of captive power generation facility.

3. The internal control procedure relating to stores, raw materials including

components, plant and machinery, equipment and other assets and for the

sale of goods are not commensurate to the size of the company.

4. External/political/Governmental interference on company's day to day

affairs impairing corporate governance and professional management.

5. Weight variation due to atmosphere effect of the package product.

O - OPPORTUNITIES

1. More sales realization in domestic as well as foreign market.

2. Provision should be made for determination of unserviceable and damaged

stores, raw materials and productivity

3. Steady growth of user industries like paints, plastics, cosmetics and ink.

4. Faster growth rate of market in Asian countries where manufacturing

facilities are limited.

5. Unexplored value addition sector like Titanium metal, Zirconium

compound

6. Kerala state being made better known to the outside world with the

expansion of tourism and infrastructure technical sectors.

7. Technical collaboration with ISRO in Titanium Metal production.

T - THREATS

1. Lower sales realization giants like Dupont, Kers -Mc Gee, Ishihara, and

Crystal etc.

2. Duplication chances by stockiest.

3. Existing infra structure is very old and is need to be replaced.

4. Policy change of the state and central govt. regarding sand mining may

affect the production.

5. Mining policy of central and state government can allow small time

entrants to the sector.

FINDINGS

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

decreasing and net profit through out the study.

The long term solvency position of the company is satisfactory.

The upcoming of new mining companies of Titanium product will make

stiff competition on KMML.

The inability of the management to control effectively the resistance raised

by the local people in some radical issues.

CONCLUSION

In the previous chapters, the business activities of KMML studies

comprehensively. The origin of the company and its undertakings is found out. It

has been found out that the Government is playing major role for prospering the

company. Manpower activities, welfare schemes provided to its employees and its

great play in giving various training programmes have been positively revealed.

The company is aiming at providing quality grades of TiO2 to its various

customers according to their wants.

The company is successful in increasing its production capacity from 22000

tones to 50000 tones and it is planning for its future. Dupont, USA is the

company's stiff competitor and company's marketing section keep tracks of its

products and demand and supply. The company has a good liquidity position. The

company is performing better in the recent years. The cordial and cooperate

relationship between the management and the employees is the secret behind the

success of this public sector company. All the departments in this organization are

working hand to hand thus bringing out the best results.

It may be included that the study has been done successfully keeping

the objective in mind. I was very much benefited by this training at KMML It may

be included that the study has been done successfully keeping the objective in

mind.

BIBILIOGRAPHY

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

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

Delhi

Stanton William. "Fundamentals of Marketing", Mc Graw Hill

C.R.Kothari, "Research Methodology methods and Techniques",

Wishwa Prakashan, New Delhi

Philip Kotler and Kevin Keller "Marketing Management

www.kmml.com

www.export-japan.com.inc

Department Manuals

Spreading Splendour (Monthly Newsletter from KMML)

Company Brochures

The KMML Standing Orders

Annual Report 2009-2010

Annual Report 2010-2011

Annual Report 2011-2012

APPENDIX

ABBREVATIONS

KMML : Kerala Minerals and metals Ltd

Ti02 : Titanium Dioxide

ICICI : Industrial Credit and Investment Corporation of India

SBI : State Bank of India

SBT : State bank of Travancore

PF : Provident Fund

DGM : Deputy General Manager

CITU : Centre of Indian Trade union

INTUC : Indian National Trade Union Congress

RSP : Revolutionary Socialist Party

AGM : Assistant General Manager

AAO : Assistant Administrative Officer

APO : Assistant Plant Officer

AO : Administrative Officer

HRD : Human Resource Development

JGM : Joint General Manager

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