199865494 organisation-study

Get Homework/Assignment Done Homeworkping.comHomework Help https://www.homeworkping.com/

Research Paper helphttps://www.homeworkping.com/

Online Tutoringhttps://www.homeworkping.com/

click here for freelancing tutoring sitesA n O r g a n i s a t i on S t u d y

atIndianRareEarthsLimited,Chavara,Kollam

S u bmi t t ed i n p a r ti alf ul f i llm e n tfor th ere q u i re m entfor t h ea w a r dof t h e d e gree o f

MASTEROFBUSINESSADMINISTRATION

M

GUNIVERSIT

YKOTTAYAM

Submittedby

A

mpadySRegisterNo

:10111

Undertheguidanceof

Mr.:MathewKurianFac

https://www.homeworkping.com/


http://www.homeworkping.com/






ultyMemberM

BADepartment,CaarmelengineeringCollege,Pathanamthitta

C

aarmelEngineeringCollegePe

runad,PathanamthittaMay20

10

D E CLARA T I O N

I

declarethattheprojectreportentitled“AnorganisationstudyonIndianRareEarthsLimited”Sub

mittedbymefortheawardofMasterofBusinessAdministrationofM.GUniversityismyownwor

k.Thereporthasnotbeensubmittedfortheawardofanyotherdegreeofthisuniversityoranyuniver

sity.

Place:Kollam AmpadyS

Date:

AC K N O W LE D G E M E N T

Fi

rstofallIwishtoexpressmydeepgratitudeandthankstoGodwhohelpedusincompletingtheorganisationstud

ysuccessfully.

I

shallremaingratefultoMr.:MathewKurian,Faculty,MBADepartment,CaarmelEngineeringColle

geforhisambleguidanceandencouragementforcompletingtheorganisationstudy.Iamalsoextremelygrat

efultofacultymemberfortheirvaluablesuggestionsandadviceregardingthiswork.

Ialsoexpressmy profoundgratitude to project guide Mr:

A

.Jayapalan,Sr.Manager,HRMforhisvaluableguidanceandtimelyadviceandwellwishersforencourag

ementgiventousduringthecourseoftheproject.

ItismypleasuretoexpressadeepsenseofgratefultoMr:Chandrasekhar,Sr.

Manager,Safety &EnvironmentDepartment&MISwithout hisuntiringefforts

a

ndtremendousbackgroundinformationthisworkwouldnothavematerialized.Iexpressmysincerethankst

oallthestaffofIREL,Chavarafortheirco-operationduringmystudyinthecompany.

Lastbutnotleastwethankmyparentsandforalltheirmoralsupportandhelp,theyhadgiventome.

C O N T EN T S

• Introduction

• IndustryProfile

• CompanyProfile

• ProductProfile

• CustomerProfile

• Departmentalisation

Y HRMDepartment

Y MiningDepartment

Y ProductionDepartment

Y QualityControlDepartment

Y Stores&DespatchDepartment

Y InternalAuditDepartment

Y Research&DevelopmentDepartmentY

Project&MaintananceDepartmentY

Marketing&SalesDepartment

Y

FinanceDepartmentY

MedicalDepartmentY

SecurityDepartment

Y Safety&EnvironmentalDepartment

Y PurchaseDepartment

Y CivilDepartment

• SWOTAnalysis

• Findings

• Suggestions&Recommendations

• Conclusion

• Bibliography

Ta bl eofCo nt e nt s

Subject PageNumber

Chapter1

Introduction 7

Objective&Scopeofstudy 9

Methodology&Limitationsofthestudy 10

Chapter2

IndustryProfile 11

CompanyProfile 14

Historyoftheorganization 15

Vision&MissionofIREL 16

Awards&Achievements 17

ProductProfile 20

CustomerProfile 22

Chapter3

HumanResourceDepartment 24

MiningDepartment 37

ProductionDepartment 39

QualityControlDepartment 44

Stores&DespatchDepartment 46

InternalAuditDepartment 49

Research&DevelopmentDepartment 51

Project&DevelopmentDepartment 52

Marketing&SalesDepartment 54

FinanceDepartment 58

MedicalDepartment 62

SecurityDepartment 65

Safety&EnvironmentDepartment 66

PurchaseDepartment 71

CivilDepartment 72

Chapter4 SWOTAnalysis 73

Chapter5Findings 77

Suggestions&Recommendations 78

Conclusion 79

Appendices 80

L I S T O FTABLES& C H A R TS

NameoftheTable/Chart Fig.No PageNo

CorporateStructure 1 8

Mineralavailability&Contribution 2 12

MineralDetails 3 13

ProductProfile 4 19

Product&Uses 5 20

DepartmentStructure–HRM 6 24

ManpowerStrengthofthecompany 7 26

Payscale–workmen 8 29

PayScale–Officers 9 30

Departmentstructure–TimeOffice 10 35

Departmentstructure–Mining 11 38

Departmentstructure–Production 12 39

ProductionCapacity 13 41

ProductionProcess 14 43

Departmentstructure–QualityControl 15 44

Departmentstructure–Stores&Despatch 16 46

Departmentstructure–InternalAudit 17 49

Departmentstructure–Research&Development 18 51

Departmentstructure–Project&Maintanance 19 53

Departmentstructure–Finance 20 58

Departmentstructure–Medical 21 62

Departmentstructure–Security 22 65

Departmentstructure–Safety&Environment 23 66

Departmentstructure–Civil 24 72

OrganisationStructure 25

I N TR O DUC T I O N

E

achandeveryorganisationhasitsownimportanceintheeconomicwealthofthenation.Differentorganisatio

nmeetsdifferentneedsofpeoplebyofferingdifferentproductsandservices.Duetoglobalisationtheworldh

aschangedintoaglobalvillage.Inthisfastandchangingbusinessscenario,itisimperativeforeveryentrepre

neurtohaveavividunderstandingofthefunctionalapplicationofthenewagebusiness.Asapartoftheacadem

iccurriculumeachstudenthastoundertakeanorganisationalstudytogetpracticalexposure.Thisstudyiscon

ductedatIndianRareEarthsLimited,Chavara.

I

RELChavaraislocated10kmnorthofKeralaand85kmfromTrivandrum,capitalofKeralaand135byroa

dfromKochinisperhapsblessedwiththebestmineralsanddepositofthecountry.Theplantoperatesonamini

ngareacontainingashighas40%heavymineralsandextendingoveralengthof22kmsinthebeltofNeendaka

raandKayamkulam.

Thedepositisquiterich

w

ithrespecttoIlmenite,RutileandZirconandthemineralIlmenitehappenstobeofweatheredvarietyanalysin

g60%TitaniumDioxide(TiO2).ThepresentannualproductioncapacityofChavaraunitengagedindryaswe

llaswet(dredging/

U

pgradation)miningandmineralseparationstandsat2,00,000tonesofIlmenite,1,14,500tonesofRutile,11,

750tonesofZirconsand10,000tonesofSillimanite.Inadditiontothat,theplanthasfacilitiesforannualprodu

ctionofgroundZirconcalledZirflourandMicroziroftheorderof6,000tonesand300tonesrespectively.

IRELChavaraisoneoftheoldest

an

dleadingpublicsectorundertakingundertheDepartmentofAtomicEnergy(DAE).ItisanISO14001:2000;

OHSAS18000certifiedcompanysuppliesbeachsandmineralstotheforeignanddomesticmarket.Itcaterst

herequirementsofdevelopedcountrieslikeU.S.A,U.K,Germany,Australia,Japanetc.Themajormineralp

roductsofIRELareIlmenite,Rutile,SillimaniteandZirflour.

C O RP O RATE S TRU C T U RE

OSCOMPlantOri

ssa

MineralDivisionChavara

Corporate&Registered officeatMumbai

MineralDivisionManavalakurichi

RareEarthsDivisionUdyogama

ndal

FigNo.1

Chapter1

RE S EARC H D E S I G N

A

researchdesignisaplanoftheproposedresearchwork.Theresearchdesignsimplyaspecificpresentationoft

hevariousstepsintheprocessofresearch.Designmeansadoptingthattypeortechniquewhichismostsuitedf

ortheresearchandstudyoftheproblem.Itisaplan,structureandstrategyofinvestigationconceivedsoastoob

tainanswerstoresearchquestionsandtocontrolvariance.

1.1 OB J E C T I V E O F T H E S T UD Y

Themainobjectiveofthestudyis

t

ofamiliarisewiththeorganisationalfunctionsintheorganisation,therearemanyotherminorobjectivesalso

.Theyarethefollowing:-

• Tounderstandabouthowanorganisation’ssystemisperforming.

• Toknowaboutvariousdepartmentsandtheirfunctionsinanorganisation.

• Tostudythemanagerialactivitiesperformedinanorganisation.

• Toknowhowanorganisationcoordinatesitsactivities.

• Togetapracticalexposureasthefuturemanager.

1.2 SC O P E O F T H E STUD Y

T

hescopeofthestudyistoknowabouttheorganisation,itsstructure,thefunctionsperformedbyvariousde

partmentsandtoknowtheoverallperformanceoftheorganisation.Thestudywillhelpthemanagements

tudentstogetapracticalexposure.

CaarmelEngineeringCollege,Pathanamthitta 10

1.3 M ET H O D O L O G Y

study.

Bothprimaryandsecondarydatawereusedforthis

1. PrimaryData:-

Theprimary datacanbeobtainedeither

t

hroughobservationorthroughdirectcommunicationwithrespondentsinoneformoranotherorthroughpers

onalinterviews.Thereareseveralmethodsforcollectingprimarydata.Theyareobservationmethod,intervi

ewmethod,throughquestionnaire,throughscheduleetc.Hereprimarydatawereobtainedfromdirectinterv

iewsmadeonwithmanagers,officersandworkersofthefirm.

2. SecondaryData:-

Secondarydatameansdatathatarealreadyavailableie:-

theyrefertothedatawhichhavealreadybeencollectedbysomeoneelse.Heresecondarydata

werecollectedfromcompanybrouchers,manualsandotherrecords.

1.4 L IMI TAT I O N S O F TH E STUD Y

• Thestudyislimitedtomyexperienceandknowledge.

• Lackofavailabilityofsecondarydatafrompublishedjournalsandreports.

• S

ecrecyoftheorganisationpreventsthemfromgivingsomeofthedetailsregarding

thefirm.

• E

mployeeswerebusyintheirworksotheycouldnotgivemoreinformati

on.

• Theirmaybeerrorsduetothebiasoftherespondents.

• Timeisamajorlimitationinthecourseofstudy.


Chapter2

I NDU S TR Y PR O F I L E

R

areearthselementsseriesofchemicalelementsoftheperiodictable.Therareelementswithatomicnumbers

57through71.Intheearlyyearstheseelementswereconsideredasrareelementsandsotheyarecalledasraree

arthmetals.Latermanyelementsinthisgroupwerefoundsplendidbuttheirnameremained unchanged.

Theprimarysourceofrareearthelementsisgreenishyellowcolouredmineralsand,whichisMonazite.Its

availability innatureisconfined

t

ocertainbeachesandrockfoundincertaincountries.ThebeachescontainingtheMonazitearefoundmixedw

ithothermineralstoo.Mostofthese areores

fo

rvaluablemetals.Anoreisamineralformwhichmetalcanbeseparatedeconomically.TheseoresareIlmenit

e,RutileandZircon.IlmeniteandRutileformstheoreforTitanium,ZirconforZirconium.EventhoughAlum

inumbearingmetalGarnetandSillimanitearealsofoundalongwiththesebeachsandminerals.Buttheyaren

otcommerciallyexploitedforAluminumproductionduetoeconomicreasons.HoweverGarnetandSillima

niteintheirnaturalformarecommerciallysignificant.Ilmenitewhichisblackincolourconstitutesamajorch

uckoftheseminerals(60%)presenceofthesemineralsmakesthebeachesappearblack.Thesemineralsarec

ommerciallyknownasbeachsandmineralsorheavyminerals.

T

heoriginofbeachsandisfromrocks,whicharerichwithheavyminerals.Thissandparticlereachesseathroug

hrivers.Thesealevelisnotremainingconstant.Itisregardedthatthesealevel.Itisnowreally100metersabov

ewhatwehadseen20,000yearsago.ThiswhitesandseenatthebeachareacontainsthemainconstituteasQua

rtz.Thisislighterthanblacksand.Asaresultofmovementoftheseathissandwillerodeawayandblacksandge

tdeposited.Theblacksandthusdeposited100yearsagoisminedandprocessed.

Intheyear1789Fr.WilliamGeorge(1761-

1817)

discoveredIlmeniteatknowerinEnglandandstatedthatthisblacksandcontainssomeimportantmetal.Buth

efailedtodiscoverwhichmetalitwas.Afterseveraltime,intheyear1875theHungarianscientistMartinHee

nWitchKlapporthfoundthesamemetalcontainsintheRutilemineralsaboutwhichFr.WilliamGeorgemen

tioned.AfteraseriesofinvestigationsarefoundthosemetalscontentasTitaniumafter“Titan”ofGreekmyth


ology.


T

echnologydevelopedovertheyearhasmadethebeachsandmineralstobeutilisedinavarietyof“industrialan

ddomestic”applications.Monazitewasmainlyusedinthegasmantleindustry.Aftertheadventofelectricity

itsdemanddecreasedinthegasmantleindustry.IlmeniteandRutileareusedinhightemperaturerefactoryin

dustry,ceramicsindustryetc.Zirconisusedinfoundries,ceramics,refectoriesandinthemanufacturingofZi

rconiumchemicals,metalsandalloys.Zirflourisusedinfoundriesforhightemperaturecastings.Garnetisus

edinthemanufacturingofabrassivepolishingglass,TVtubes,forsandblastingandforwaterfiltration.Theb

eachsandminingandprocessingindustryhasvastfuturebecauseoftheirdemandinnuclearindustrytoo.Inth

epresentscenarioofboomingeconomicslikeIndiaandchinathereisahugedemandforthebeachsandminera

ls,Ilmeniteinparticular.

T

hecurrentworldproductioncapacityofIlmeniteandotherTitaniumfeedstocksforproductionofTitaniumD

ioxidePigment,Titaniummetal,Weldingelectrodesetcisusedaround70lakhsmilliontonesperannum(tpa

).ApproximatelyhalfofthisfrombeachsandsandthebalancefromIlmeniterocksmostlyfoundinCanadaan

dNorway.InviewofthelimitedsupplyofnaturalRutileitsshareofconsumptioninpigmentproductionisrath

ersmalland55%ofitstotalavailabilityofabout5lakhstpaisusedinthenon-

p

igmentapplicationspredominantlyintheproductionofweldingrodsandTitaniummetal.Thepresentprodu

ction

c

apacityofpigmentintheworldisjustabove4lakhstpa.NorthAmericaisthelargestproducerwith37%oftheg

lobalcapacity.Europewith32%capacityisthesecondlargestproducerandAsia-

Pacificregionwith21%capacityisthethird.Thebalance10%distributedamongtherestoftheworld.

I

ndiahasthelargestresourcesbaseof278milliontonesforIlmenite.ThisisthesinglelargestandIlmeniteandl

eastexploitedmineraldepositintheworld.However10%ofthisisonlyminerableresourcesbaseinIndiaforo

thermineralsare:-

Minerals InMillionTones Contributiontotheworld

Rutile 18 10%

Zircon 21 14%

Monazite 8 7%

Sillimanite 130 25%


Ilmenite 107 35%

FigNo.2


InIndiatheinstalledproductioncapacityforIlmeniteisaround5-2lakhtpa(5-

6%ofglobalIlmeniteproduction)andtheproductionofIlmeniteandRutileduring2004-05wasover3-

5lakhtonesand1300tonesrespectively.

P

resentlytherearefewprivateorganisationsengagedintheminingandmineralseparationofbeachsandmin

erals.TheIndianplayersatpresentareTransworldGarnetPrivateLimited,VVminerals,EarthMineralsPri

vateLimited,TuticornTitaniumResourcesandvalueaddition.

TiMineral TiO2 USD/Tones

Mineralfeedstock

>Ilmenite50-60 200-250

Manufacturingfeedstock

>Stag

>SynRutile

87

93

575

878

TiO2 Pigment

>RutileGR

>AntaseGR

99.8

99.8

3666

3333

TiSponge 99%Ti 11111

TiMillProductions 99%Ti 22222

FigNo.3

Itcanbeseenthatvaluewillbeincreasedabout100timethroughvalueadditionnaturalIlmenite.

Keysuccessforthebeachsandmineralindustryare:-

• IncreasetheIlmenitecapacitytoreacheconomicscaleofproduction.

• Valueadditionprojectinmineralsandrareearthscompound.

• Initiateactiontodevelopnewminingareas.

• F

orwardintegratethroughstakeinworldleaderinpigmentIndustrylikeTinfoss,

DuPontorsellingupapigmentsplant.

• Exploreotherminingoptionsinneighboringcountries.


C O M PAN Y PR O F I L E

OnAugust18,1950IndianRare EarthsLimited

(

IREL)wasincorporatedasaprivatelimitedcompanyjointlyownedbythegovt.ofIndiaandGovt.ofTravanc

ore,Cochinwiththeprimaryintentionoftakingupcommercialscaleprocessingofmonazitesandatitsfirstun

itnamelyRareEarthsDivision(RED)AluvaandKeralafortherecoveryofthorium.

A

fterbecomingafullfledgedcentralgovt.undertakingin1963undertheadministrativecontrolofDepartment

ofAtomicEnergy(DAE),IRELtookoveranumberofprivatecompaniesengagedinminingandseparationo

fbeachsandmineralsinsouthernpartofthecountryandestablishedtwomoredivisionsoneatChavara,Keral

aandotheratManavalakurichi(MK), Tamilnadu.

After agapof20yearsIRELcommissioned itslargestdivision

c

alledOrissaSandComplex(OSCOM)atChatrapur,Orissa.TodayIRELoperatesthesefourunitswithcorpo

rateofficeinMumbai andproduces/sellssixheavymineralsnamely Ilmenite,

Rutile,Zircon,Monazite,SillimaniteandGarnetaswellasvariousvalueadded products IREL

ismakingprofitforthelast6yearswithitssalesturnoverreachingapeakexceedingRs:2600millionsin2000-

01,withexportcomponentofaboveRs:1000millions.

Ch

avaraplantisengagedintheprocessingofbeachdepositsavailableonthecoastalbeltofNeendakara-

Kayamkulam.


H I S TO R Y O F T H E O R G AN I SAT I O N

I

REL’shistoryshouldnotbenarratedwithoutmentioningthe

n

ameoftheGermenchemistMr.HerrSchombergwhohasrealisedthattheshiningyellowishbrownparticless

tickingtocoir,acoconutfibershippedfromIndia(1909)containedMonazite.

T

hissparkledthediscoveryofvastdepositofmonazitearichsourceofrareearthsagroupofelementswithawid

evarietyofusesinindustryandscience.AfewplantswereoperatingatChavaraandManavalakurichiforthes

eparationofmonazite.

1948:-

The

govt.ofIndiasetupatomicenergycommissionunderthechairmanshipofDr:HomiBhabha.TheexportofM

onazitewasstoppedandthepossibilityofsettingupafacilitytoprocessthebeachsandmineralfortheproducti

onofRareEarthswasexamined.

1950:-IRELwasincorporatedatBombay

1951:-IRELbecomethefull-

f

ledgedgovt.undertakingundertheDepartmentofAtomicEnergyandcommissionedconstructionofitsrare

earthsplantsatUdyogamandalinKerala.

1952:-RareearthplantwasdedicatedtothenationonDec24bytheJawaharlalNehru.1955:-

OpeningThoriumfactoryofBombay.

1965:-

O

peningmineraldivisionatKollaminKeralastatewithmanufacturingfacilitiesatChavarainKeralaandMan

avalakurichiinTamilnaduandagiantmineralsandseparationandsyntheticRutileplantatChatrapurinOriss

a.


V I S I O N O FI R E L

1. T

obealeadingsupplierofbeachsandmineralsfromAsiabysupplying10%oftheworlddemandforbeachsand

mineralsoverthenext7-

1

0years.Itwouldbeachievingbymaximumutilisationofexistingcapacities,newcapacityaddition,capturin

gmajorportionoftheincrementalgrowthintheglobalTiO2feedstockdemandandbydevelopingcompetitiv

evalueaddedRutile,Zircon,SillimaniteandGarnetproductsthatmakehandsomecontributiontorevenuean

dprofits.

2. Tobecomethepreferredrareearthsproductssupplier(Producerand/

orM

arketer)fordomesticcustomerstoensurelongtermsentencesandprofitabilityofrareearthsbusinessandtoa

chieveadequateefficiencyinmonaziteprocessingaslongasitisnecessary/worthwhile.

M I S S I O N O FI R E L

1. T

oharnessbeachsandsinanenvironmentallyandsociallyresponsiblemannerforefficientlyproducingminer

alsandtheirtraditionalandinnovativevalueaddedproductsofworldclassqualitythatareusedtomakeincrea

singlysuperior/novelproductsrequiredbycustomers.

2. Toplayadominantroleindevelopingdomesticrareearthsmarketbyproducingand/

o

rmarketingthequalityvalueaddedproductstorealisemaximumpotentialorrareearthsinarangeofapplicati

ons.

3. T

obuildaprofessional,creativeandcommittedworkforceandnurtureanenvironmentthatfosterslearning,sh

aringanddevelopment.


Q UAL I T Y P O L I C Y

I

RELiscommittedtoprovideproductsofconsistantqualitytotheirsatisfactionofthecustomersthroughQual

ityManagementSystems(QMS)implementation.

T E C H N I CA L EXCEL L EN C E

I

RELusesstateofarttechnologyinminingandmineralprocessing.Therichexperienceandprofessionalexpe

rtiseofpeoplewhoareoneamongthebestintheindustryandstrictcompliancestoqualitystandardshasenabl

edIRELtoremainastheleadingsupplierofheavymineralstothenationandabroad.IRELisalwaysbeendriv

enyinnovationandsoundmanufacturingpractices,beitinproduct,technologyorprocess.

A W A RD S AN D AC H I EV E M E NT S

I

RELhasfairlygoodrecordinitsperformanceduringthepastdecade.From1997-

98

onwardsalloutteameffortswastakenuptoachievenameplatecapacityfortheminingandmineralseparation

plantsinallthethreelocations,totalsalesturnover,shareofexport and

profitaftertaxstartedimprovedbyleapsandboundsandthecompanyrecordedincreasing

p

rofitsincethen.Inadditiontoproductionandfinancialperformance,IRELhasexcelledintheareasofmarketi

ng,safetyandhumanresourcesmanagement.Inrecognitionofthecompany’sefforts,scopeawardedprestig

ioussilverTrophyof‘SCOPE’awardforexcellenceandoutstandingcontributiontothePublicSectorMana

gement-Specialturnaroundcategoryfortheyear1999-2000.Duringtheyear2006-

0

7IRELpostedalltimehighsalesturnoverexceeding3600millionswithexportcomponentoverRs:1000mill

ions

&alltimehighprofitbeforetaxofRs:1000millions.


Followingarethelistofawards&recognitionwonbyIRELduringthelasttenyears.

E XP O R T A W AR D S

1. Ch

emicalandAlliedProductsExportPromotionCouncil(CAPEXIL)specialExportawardfromp

rocessedMineralgroupfortheyear1996-97,98,99,2000,01,02,03,04,05,06.

2. IndianChemical ManufacturesAssociationCertificate of

MeritforISO9000certificationfor1997,ISO9002certificationfor1998.

3. CertificateofmeritfromCHEMEXCILunderthe categoryofbasicinorganic andorganic

chemicalsforoutstandingperformancefortheyear2000-2001 includingAgrochemicalPanel.

S AFET Y A W ARD S

1. AERBsafetyawardswonbyChavaraUnit(Winner)fortheyear2003.

2. GreentechawardswonbyChavaraUnit(Winner)fortheyear2003.

3. Safety award from National Safety Council, Kerala chapter won b

ChavaraUnit(Runner)fortheyear2003.

4. N

ationalSafetyAward(Mines)forlowestInjuryFrequencyRatewonbyChavaraUnit(Winner)f

irtheyear2003.

5. Ap

artfromabovenationallevelsafetyAwardscompany’sMineralSeparationplantsnamelyChav

arahaswonmanystatelevelawards.

O T HE R A W ARD S

1. Si

lverTrophyof‘SCOPE’awardforexcellenceandoutstandingcontributiontothePublicSector

Management_SpecialTurnaroundcategoryfortheyear1999-2000.(SCOPE-

StandingconferenceofPublicEnterprises)

2. Enterprise ExcellenceAward 1999-2000, 2000-2001 from Indian Institute

ofIndustrialEngineering.

3. HindiRajbhasaShield fortheyear2000-

2001forthebestamongstPSU’sunderDepartmentofAtomicEnergy.


FUTUR E PLA N

I

nthelightofnewchangingeconomicscenarioIRELispoisedtoadoptatwoprongedstrategynamelyconso

lidationandexpansionoftheoperationsandjointventureforvalueadditionandnew productionfacilities.

Company

i

spoisedtoreachgreaterheightsintheyearstocome.ThephaseIexpansionatChavaraisnearingcompletion

andtheexpansionatMKisexpectedtotakeoffsoon. Expansion

ofcap

acityatOSCOMisalsoprogressing.Iadditiontoexpansionofmineralseparationplants,thecompanyispla

nningtorestartthemanufacturetherareearthsproductsinbigwaywithimplementationofMonaziteProce

ssingPlant(MoPP)atOSCOMwhichislikelytocommencecommercialoperationby2009.Thesuccessfu

lcompletionofexpansionactivitieswillbringforthaneweraofhighercapacityandprofitsandthecompany

itishopedwillattainthepinnacleofglory.Thecompanywillcontinuetobeoneamongstthemostsuccessful

PSU’s.


PR O D UC T PR O F I L E

Product means to the goods and

servicescombinationthecompanyofferstothetargetmarket.

Product Specification SpecificGravity Density Packaging

Ilmenite TiO2-58% 4.45-4.54 2600-2630InbulkHLPbagswith

Polithineliner

R

utileQG

rade

TiO2-95% 4.18-4.24 2630-2650

Inbulk50kgHLP

bagswithPolithineliner

Zircon

S

pecial

Grade

ZrO2-58% 4.60-4.70 2900-3000

Inbulk50kgHLP

bagswithPolithineliner

SillimaniteQ

GradeAl2O3 3.20-3.25 1950-2050 50kgjutebags

Zirflour ZrO2-64% - 1800-1850

5

0kglaminatedHLPbag

swithPolithineliner

Microzir ZrO2-63.5% - -Liner20kglaminated

Polithinebags

FigNo.4


Products Uses

IlmeniteManufacturingofTiO2pigmentsyntheticRutileandTitaniumslag

Rutile Fluxesforweldingelectrodes

Zirconsand Ceramics,Refractoriesandfoundries.

ZirconFlour Ceramicsandfoundries.

Microzir PacifierinCeramics

Sillimanite Refractories

Garnet Abrasiveforsandblasting,waterjetcuttingandglasspolishing.

Monazite RawmaterialforproductionofRareearthComponent

CompositeREChlorideCatalyst,Paintdriers,basicrawmaterialforMisc.metalwhich

usedaslighterfrint&mantles.

ThoriumNitrate GasMantles

FigNo.5


CUST O M E R P R O F I L E

companyarethefollowing:-

A. ILLMENITE:-

Primecustomersofthemajorproductsofthe

1. KOCHINMINERALSANDRUTILELTD.KOCHI.

2. DCWLTD.TUTICORN.

3. TRAVANCORETITANIUMPRODUCTSLTD.

4. KILBURNCHEMICALSLTD.TUTICORN.

5. KOLMAKCHEMICALSLTD.KOLKOTA.

B. RUTILE:-

1. ESABINDIALTD,CHENNAI/KHARDAH.

2. ADORWELDINGLTD.,MUMBAI/CHENNAI.

3. D&HSECHERONELECTRONICS(I)LTD.,INDORE

4. MARUTHIWELDLTD.,GURGAON.

5. ROYALARCELECTRODESPVT.LTD.VASAI,THANNEDIST.

C. ZIRCON:-

1. THIRUPATHIMICROTECH(P)LTD.,UDAIPUR.

2. RUBYCERAMICSPVTLTD.,PUNE.

3. ASTRONCERA,SALALDIST,SABARKANTHA.

4. JOHNSONMATTHAEYCERAMICSINDIALTD,HOSUR,TN

5. FOURFIELD,PUNE.

D. ZIRFLOUR:-

1. FOSECOINDIALTD.,PUNE.

2. VIDEOCONNARMADAGLASS,BHARUCH.

3. H&RJOHNSON(I)LTD.,MUMBAI.

4. NAHARCOLOUR&COATINGLTD.,UDAIPUR

5. BHANUCERGLAZEP.LTD.


E. SILLIMANITE:-

1. MAITHANCERAMICSPVT.LTD.,CHIRKUNDA,JHARKHAND

2. MANISHRIREFRACTORIES,CUTTACK.

3. ASSOCIATEDCERAMICS,CHIRKUNDA,JHARKHAND.

4. TATAREFRACTORIES,BELPAHAR,ORISSA.

5. ASSOCIATEDCEMENTCOMPANIESLTD.,NAGPUR/KATNI.

F. RAREEARTHSCHLORIDE:-

1. CIBASPECIALITYCHEMICALS,UDYOGNAGAR,GUJRAT.

2. DHIRAJINTERMEDIARIESPLTD.,VAPI,GUJRAT.

3. RAVESHIAPIGMENTSLTD.,VAPI,GUJRAT.

4. ANUPAMCOLOURS,VAPI,GUJRAT.

5. BERGERPAINTSINDIALTD.,VAPI,GUJRAT.

G. THORIUMNITATE:-

1. FARGOMANTLEPRODUCTSLTD.,MUMBAI.

2. MAKANIPRODUCTSLTD.,MUMBAI.

3. B.KSHAWINDUSTRIES(P)LTD.,KOLKATA.

4. A.D.CMANTLEMANUFACTURINGCO.,MUMBAI.

5. ELITEINDUSTRIES,MUMBAI.


D E P ART M E N T S

1. H U M A N R E S O URC E DEPAR T M E NT :-

I

RELChavaratakesplaceit’shighlymotivatedandtrainedhumanresourcethathasmaximiseditsperforman

ceandtheirbyitsgrowthandprofit.Moraleoftheemployeesremainsfacilitatingsmoothworkingofthecom

pany.Skillrequirementrelatedtodifferentdisciplinesareidentifiedandtrainingprogramsandworkshopsar

eefficiencyofthehumanresource.

DE P ART M E N T S TRU C TURE

UnitHead

GeneralManagerH

RM

Dpty.ManagerSectionHead

SeniorManager(HOD)Medical

Dpty.AdminOfficerTime Officer

ManagerSecurity

MedicalPersonnel

SeniorAsst.TimeOfficer

SecurityGuards

Sec. HeadTraining

Sec. HeadLegal

InchargeWelfare

SubordinateStaff/ClericalStaff


FigNo.6


HRdepartmentleadbyGeneralManagerand

t

woDeputyManagersassistedhim.TheSecurityDepartmentandTimeOfficeareworkingundertheGeneral

ManagerofHRDepartment.FourDeputyOfficersand14clericalstaffsareworkingundertheDeputyMana

gers.

P

eoplearethemostimportantresourcesofanorganisationThemainfu

nctionsofHRDepartmentare:-

1. Administration

2. IndustrialRelations

3. TrainingandEmployeeWelfare

4. TimeManagement

1. ADMINI S TRATI O N

include

a. Manpowerplanning

b. Recruitmentpolicy

c. Performanceappraisal

TheadministrativefunctionsofHRdepartment

d. Salaryandwagesadministration

e. Industrialdiscipline

f. Maintainingservicebookandpersonnelfile

g. Maintainingreservationregister

a) M a n p o w e rP l a nnin g :-

Manpower Planning is important for any type of

o

rganisation.Itistheprocesswhichdetermineshowanorganisationshouldmovefromitscurrentman

powerpositiontoitsdesiredmanpowerposition.Forthispurpose,theHRdepartmentatIREcollects

feedbackfromalldepartmentinordertoidentifytheirmanpowerrequirementsofvariousdepartme

ntsandthentheHRdepartmentcrosscheckwhetherthereisanyoverstaffinginanyofthedepartment

s.Ifthesedepartmentshaveexcessofstaff,theyaretransferredtothosedepartmentswherethereisas

hortage.


T

hecompanyconsidersthenumberofemployeespresentlyassignificantlyhigh.Thereisaproblemth

atsometimetheVRScanleadtoscarcitytoworkersforparticularjob.AtIRELusingtheprocessofmu

ltitaskingtheemployeesare

OrganisationStudyonIRELChavara


m

adefittoworkinotherfunctionalso.BytheVRSschememorethan100employeeshavebeensentout

withinspanof3years.

M a n p o w er o f th eco m pa n y

T

hereare491employeesinthecompany.Totalexecutivesare105andworkmenare380.Thenumberofcontra

ctworkersare632.

Detailsshowedasbelow.

MANPOWERSTRENGTH

Male Female Total

Executives 83 22 105

Workmen 355 31 386

Total 438 53 491

CONTRACTWORKERS

Loading 65

Civil 85

Mining 235

Bagging 218

Canteen 29

Total 632

b) Re c r uit m e n t p o l i cy :-FigNo.7

R

ecruitmentinChavaraPlantisdonethroughlocalemploymentexchangeforfindoutprospectiveworkers.Th

eofficestaffsandmanagersarerecruitedbytheHeadOfficethroughtestsandInterviews.

Recr uit m e ntCr i t e r i a

F

ortherecruitmentofcandidates,thecandidatesshouldbeabove18yearsofage.Thefollowingstepsaretaken

beforetherecruitmentofemployees.Theyaregovt.guidelines, the recruitment only through



employment exchange, notification in internet and



adv

ertisementinnewspapershouldbeneeded.Applicationwillbescrutinisedwiththehelpofaselectioncommit

teeandeligiblecandidatesarecalledforaninterview.

S e l ec t i o n :-

Thestepsfollowedintheselectionprocessare

1. Invitingandreceivingapplications

2. Scrutinisingtheapplications

3. SelectionTest:-Theselectiontestsofemployeesare

a. AptitudeTest

b. PersonalityTest

c. AchievementTest

d. TradeTest

Appointmentwill bebasedon

c

ertaincriteria’sliketheyaremedicallytestedafterthatinductiontrainingshouldbegiven.Aftertrainingfora

periodofoneyearormoretheywillbeputaspermanentemployees.

c)P erf o r m a n c e A pp r ai sa l :-

A

ppraisalistheevaluationofworkqualityormerit.InthecaseofIREperformanceappraisalisasystematiceval

uationofemployeesbysupervisorsorotherfamiliarwiththeirperformance.

1. Straightrankingmethod:-

Unde

rthismethodmenasawholearecomparesfromothermenandrankedonthebasisofoverallperformance.

2. Gradingmethod:-

Underthismethodcertain categoriesofwork

suchasexcellent,verygood,average,poor,very

p

oorareestablishedanddefinedactualperformanceofeachemployeethencomparedwiththegradedefinitio

nsandrankedtoevaluatetheperformanceof

theemployees.Lastgradeemployeesthatare8th&9thgrade,theirworkperformancehavebeen

observedbysupervisors.ButinthecaseofexecutivesMBO’sareobservedtheirperformanceandefficiency.

I

nIREperformanceappraisalisdoneonayearlybasistoassestheperformanceoftheemployees.Theappraisa



lisdonebythreepersons.



1. ReportingOfficer.

2. ReviewingOfficer.

3. EvaluatingOfficer.

Fi

rstlytheemployeesthemselvesdoanappraisalandthisisgiventothereportingofficerandthepersonwhohas

donetheKeyAppraisaltogetheridentifiestheKeyResultAreasandweightageisallottedtoeachoneofthem.

Thisisusuallydoneatthebeginningoftheyear.Thereportingofficercheckswhethertheresultareassetwher

emetbytheappraisaloriftheiranydeviationfromit.Andthisistobesenttoreviewingofficerandthenevaluati

ngofficer.Variousotherfactorssuchastheappraiser’smanagerialskillslikejobknowledge,interpersonals

killsarealsoincludedandguidedandthatisallottedintheappraisalandtherepromotionisbasedsolelyseniori

ty.

P r o m o t io n :-

I

nIRELpromotionisgivensenioritybasedorbasedonexperience.Promotionisatransferofanemployee toa

jobthatpaymoremoneyor that enjoyssomepreferredstatus.Sometimesthecompanyis

c

onsideringthelengthoftheservice,education,trainingcoursescompleted,previousworkhistoryetc.Somet

imesthecompanyisalsoconsideredability,hardwork,co-operation,honestyetc.

C o nd i t i onforg e ttin g P ro m o ti on :-

1. Averageleaveshouldnotexistmorethan15days.

2. Anydisciplinaryactionsshouldnotbetakenduringtheserviceofperiods.

3. Shouldnotapplyforjobinanyotherorganisation.

Thesecandidatesareeligibleforgettingpromotion.

d)S a l a r ya n d W ages A d m in i s t r a ti on :-

Wage

sinthewidestsensemeansanyeconomiccompensationpaidbytheemployerundersomecontracttohiswork

ersfortheservicerenderedbythem.



ActsFollowed:

1. WorkmenCompensationAct1923Sec2(m).

2. PaymentofWagesAct1936Sec2(VI)

3. PaymentofWagesAct1948

P AY S C A L E

T

hemonthlyremunerationreceivedbyeachoftheemployeesincludingsystemofcompensation.

ScaleofPay:-

F O R W O R K MEN

Grade ScaleofPay

W-I Rs:4085-70-6885

W-II Rs:4110-80-7310

W-III Rs:4120-90-7720

W-VI Rs:4160-100-8160

W-V Rs:4185-110-8585

W-VI Rs:4270-120-9070

W-VII Rs:4325-135-9725

W-VIII Rs:4420-155-9845

W-XI Rs:4465-180-9865

W-X Rs:5750-190-10500*

FigNo.8*-OnlyinRED,Aluva



ScaleofPay:-

F O R O F F I C E R S

Code Designation PayScale

E-0 DeputyOfficer 6550-200-11350

E-1 Officer 8600-250-14600

E-2 SeniorOfficer 10750-300-16750

E-3 DeputyManager 13000-350-18250

E-4 Manager 14500-350-18700

E-5 SeniorManager 16000-400-20800

E-6 DeputyGeneralManager 17500-400-22300

E-7 GeneralManager 18500-450-23900

E-8 ChiefGeneralManager 20500-500-26500

E-8(a) ExecutiveGeneralManager 21500-550-27000

Directors 22500-600-27300

ChiefManagingDirector 25750-650-30950

FigNo.9



e) I ndu s t r i alD i sc i plin e :-

Disciplinary

a

ctionsaretakenintheHRdepartment.Procedurefordisciplinaryactionsisonreceivingacomplaintaboutap

articularemployee,explanationisasked.Employeewillgiveanexplanationbefore15days.Iftheexplanatio

nisnotsatisfactoryhewillbegivenachargesheetandwillalsoconductadomesticenquiry.Forthispurposean

enquiryofficerisplaced.Afterconductingtheenquirythereportshouldbesenttothedisciplinarycommittee

andifnecessarycertainpunishmentmayalsogiven.

2.IND U S TRIALRE L ATI O N

Mosto

fthedisputeswillbesettledbythecompanyandtradeunions.Ifitisnotcleared,theycanapproachtothegovern

ment.TheTradeUnionsactiveinIREare:-

1. UnitedTradeUnionCongress(UTUC)

2. IndianNationalTradeUnionCongress(INTUC)

3. AllIndiaTradeUnionCongress(AITUC)

4. TravancoreMineralWorkersUnion(UTUC(B))

5. IndianEmployeesRareEarthFederation(CITU)

6. IndianRareEarthMazdoor(BMS)

T

hesearetherecognisedunions.Therearesomecriteriaforrecognizingaunion;theunionwillhave15%ofem

ployeesastheirmembers.Alsosomeparticipativeforumispresent;theyareplantscommittee, safety

committeeandHousebuildingcommittee.Thesecommitteeswillhavetheequalparticipation.

3.TRA I NING&E M P L O YEE W EL F ARE

Tra in i n ga n dDev e l op m e n t :-

“

Trainingistheactofincreasingtheknowledgeandskillsofanemployeeforduringaparticularjob”.IndianRa

reEarthLtdadoptedvarioustechniquesoftrainingforincreasing themassproductivity.Thetraining

programisrestructured regularlyinIRE.TheobjectiveoftraininganddevelopmentinIRE



1. Increasetheefficiency

2. Increasethemoralofthepeople

3. Reducetheabsenteeism

P roce du ref o r T r a inin g

1. Identifyingthetrainingneeds

Thecompanyidentifiesthetrainingneedsthrough3ways:-

a. OrganisationAnalysis

b. TaskAnalysis

c. ManAnalysis

2. Executivesthemselveswilldiscussthetrainingneeds

3. Chartingoutthetrainingplanforaperiod

4. Basedonfeedbackindividualtrainingisgiven

Tra in i n gM e th o d s

IREhasmainlyfourtypesoftrainingmethods.

1. In-houseTraining

2. ExternalTraining

3. Vocationalraining

4. FirstAidTraining

personnelintheorganisation.

Thetrainingmethodcanbegroupedonthebasisoflevelof

1. I n - houseT r a i n i n g :-Otherwiseknownasonthejobtraining.

Inthismethodexpertfromoutsidecometotheorganisationandgivetraining.

2. Ex t e r nal T r a i n i n g :-Alsoknownasoffjobtrainingisgivenoutsidethe

organisation.

everyyear.

3. Vo c a t i on a l T r a i n i n g :-Atleast20%oftheemployeesshouldbetrained

4. Fir st A i dT r a i n i n g :-30peopleinonebatchandgivethemtraining.



E mpl oye e sWe l f a re :-

Twotypesofemployee’swelfarearepresentinIREL.Theyare

1. Statutorywelfareand

2. NonStatutoryWelfare

G

ratuity,ProvidentFund,Pension,Canteen,MedicalAllowanceareincludedinthestatutorywelfare.Festiva

lAllowance,LTC,Recreation,TourFacilitiesareincludedinthenon statutory

welfare.AlsotheIRELgivesomekindofallowances.Theyare

Shi ft A l l o w a n ce

For employeesworking in shifts expect general shifts will get an

allowanceasfollows

1stShift(8amto4pm) -

Rs:10/day2ndShift(4pmto12pm) - Rs:15/day

3rdShift(12pmto8am) - Rs:25/day

H a rd Shi ftA ll o w a n ce

Sincetheplanthandlessandforitsproduction,itcreatesa

dustintheatmosphere.ConsideringthishardshipinworkeveryemployeesofChavaraplantgetsRs:135/-

monthashardshipallowance.

U ni formA l l o w a n c e

E

veryemployeeisprovidedwithtwopairsofuniformineveryyear.Rs:100/

monthaswashingallowancesisgrantedforallemployees.

Tr a n s p or t a ti onA l l o w a n ce

Everyemployee(exceptofficers)getsRs:700/-

p

ermonthasconveyanceallowance.Officerswillget10%oftheirbasicpayastheirTransportationAllowance

.

Ca nt e e n



A

roundtheclockcanteenisprovidedfortheemployees.CompanywillchargeRs:6/

dayfromeachemployee.Thecanteenisunderthecontrolofcompany.



A tt e nd a n ceBo nu s

To increase attendance in the companygives annual bonus of 12

dayswagesforeveryemployeewhohaveminimum268dayspresence.

P r o du c ti on I n c e nti v e s

EveryemployeegetsanamountofRs:525/yearasProductionIncentive

fromtheprofit.

Le a v ef a c i liti esa v a il a bl e i nIRE

CasualLeave - 15days/year

SickLeave - 10/year(workers)

10full/20half(Officers)

EarnedLeave - 33days(Itcanbemaximumof300days)

SurrenderLeave - Each employee can surrender maximum 90

days/yearor75%ofearnedleave.

O t h e rBe n e f i t s

• 750mlmilk/day

• 4pearssoap/month

• OneTurkeyorTowel/year

• Shoes(1pair)/year

• OneUmbrella/year

• Houseloanupto4.5Lakhs

• MedicalFacilities

• EducationalAllowancestoworkerschildren

• FestivalAllowance

• GroupInsuranceScheme

• HolidayFacility

• LeaveTravelConcession(LTC)



4.TIME O FF ICE

T

hereisafullfledgedofficeheadedbyDeputyadministrativeofficer.Itfollowsapunchcardsystem.Different

allowancesofemployeesaregivenanditismainlydependonattendance.Itisprovidingaccordingtotherepor

tfromthetimeoffice.ThetimeofficeisworkingundertheHRMdepartment.Themainfunctionofthisdepart

mentistomaintainattendancerecords,leaveandservicerecordsetc.Thevariousallowances,attendancebo

nusalltheserecordsaremaintainedbythetimeofficedepartment.Alsoyearlyattendancebonusisgiventothe

employees.

Attendanceof265days/year -

12dayssalaryAttendanceof262days/year -

10dayssalaryAttendanceof243days/year -

07dayssalary

Structureofthetimeofficeasfollows

GeneralManagerHRM

DptyAdminOfficer

SeniorAssistant

AssistantClerk

Attender

FigNo.10



F

orrecordingattendancepunchingsystemfollowedhere.Theattendanceregisterusuallykeepintimeoffice.

Thetimeofficecollectsattendancefromconcernedauthorityalsoandmatchwiththepunchingsystem

andavoidingswapping.

T

imeofficehasthreecentersforpunchinginconvenienceofemployees.Inminingarea,indredgingplantalsok

eepmechanicalpunchingmachine.Forthepurposeofsalaries thetime

o

fficeissendingtherecordstothefinancedepartment.Ifthefinancedepartmentasksforanyclarificationthey

willdoit.

T R A N S FE R P O L I C I E S O F I R E L, C H AV A R A

T

ransferisthemovementofanemployeefromonejobtoanotherwithoutinvolvinganysubstantialchangeinhi

sduties,responsibilities.Thecompanyisfollowing4methods.

1. Pr odu c ti on T r a ns f e r :-

Whenap

articulardepartmentorjobisfacedwiththepressureofworks,itsstrengthmaysupplementthroughfromothe

rdepartments.Suchtransfer’saregenerallymadewhereanydepartmentisoverstaffedandotherisshortofma

npower.

2. Re p l ace m entT r an s f e r :-

Are

placementtransferisthetransferofasenioremployeetoreplacewithajunioremployeeornewone.

3. S h i ftT r ans f e r :-

Whenunitsinshifts,employeesaretransferredfromone

shifttoanotheronsimilarjob.

4. Dep a rtm ent T r a n s f e r :-

Transferfromonedepartmenttoanotherwithintheplantor

withintheorganisation.



2. M I N I N G D E P A R T M EN T :-

I

nIREtherawmaterialsforproductionprocessarecollectedthroughminingprocess.Theproductionprocess

startswiththecollectionofbeachsandfromvariousplaces.ForcollectingthisbeachsandIREusesthefollowi

ngtwomethods:SeaWashingandDredging.

S EAWA SH I N G

Ra

wsandiscollectedfromsiteswheredepositsareoccurredduetonaturalbeachwashing.PresentlyIREownst

wositesoneatVellanathuruthu/

P

onmanaandoneat132miningarea.Thereisaheavymineraldepositoveralengthof22.5Km.Theyarefoundo

verorcoastalbelthavinganaveragewidthof800meters.Theseawavesdepositsthemineralssandonthebeac

hlineanditiscollected.Thenitissendtothemineralseparationplant.

D RED G ING

P

resentlyIRE,Chavarahavetwofloatingdredges(MaterialRecoveryPlant(MRP))atKarithuraandPuthent

hura.TheseplantsareconstructedwiththehelpofNeumannEquipmentsPrivateLimitedAustralia.Eachpla

ntwascostaboutRs:10Croreasestablishmentcost.

T

heplantDWUPusedforthemechanisedrecoveryofmineralsfromthebeachsand.TheDWUPconsistofaflo

atingdredgingplantoperatinghydraulicallyandelectricallywhichcouldbemovedfromoneplacetoanother

basedontherequirement.Theplantisfloatinginanareahavingawaterdepthof6meters.Thesandalongwith

waterintheformofslurry(amixtureofsandandwater)ispumpedtotheheavyUpgradationequipments.Thee

quipmentconsistofaseriesoftransferbinrotatingscreenscalledTrommer,SpiralSeparators,Hydrocyclon

es,pumpsetcallbeingelectricallyoperated.TheDWUPcandredgeabout40to60tonesperhour.Therawsan

dhavinganaverageat40%heavymineralsisfedtothefloatingplantandupdatesitto85to90%mineralconten

t.Thewastesand(Quarts)fromDWUPisusedforbackfillthedredgedarea.



DE P ARTMENT S TR U CTURE– M I NING

HOD

SectionHeadMini

ng

In-chargeSurvey In-chargeDWUP In-chargeDWC

DWUP Operators MiningPersonnel

FigNo.11



3. P R O DUC T I O N D E PART M EN T :-

T

heactofmakinggoodsandservicesiscalledproduction.Ineverydayspeech‘Production’referstotheactofcr

eating somethingproductioninvolvesthephysicalconversionofrawmaterialsintotangiblegoods.

I

nIRErawsandiscollectedthroughminingprocess.Thesandisfilteredthroughspirals,conesandjigstoprodu

ceabulkconcentrationofheavydrying,screening,electromagneticandelectrostaticprocessesandusedfors

eparation.Mineralsfoundincoastalareasarecollectedeither manuallyor

mechanicalmeans,productions starts fromtheminingprocess.

DEP A RT M ENT S TRUCT U RE–PR O DUCT I O N

HODPRODUCTION

SH(Production) SH(MIS)

ShiftIn-Charge SH(ProcessControl)

ShiftEngineers

ProductionDeptPersonnel

FigNo.12



MINING P R O CE S S

T

heminingandprocessingofbeachsandareachievedwithagoodmixtureofmodernmechanicaldevicesand

manuallabour.Beachsandiscollectedfromthesurfaceofadepthofameterwiththehelpofdredgers.Forapro

cessingofbeachsands,thedifferenceinelectricconductivity,magneticsusceptibilityandspecificgravityof

theirconstituentsaretakenintoconsideration.Thebeachsandistreatedbywellgravitymethodsusingspiral,

conesandjigstoproduceminerals.

IREcollectsrawsandintwodifferentways:

1. Seawashingorbeachwashing

2. Mechanicaldredging

MINERALREC O VE R Y P LANT

T

hemineralrecoveryplantconsistsofafloatingdredgingplantwhichcouldbemovedfromoneareatoanother.

Thisiscalledfloatingmineralrecoveryplant.Theplantisplacedinanareawhichhasawaterdepthof9meters.

Thesandalongwithwaterissuckedintothemainunit.FirstthemixtureissendtoastoragetankcalledTramme

l.Thenitissendingforseparation.Thewastesandandsomequantityofwaterispumpedout.Themineralcont

entispumpedfromtheMRPtoconcentrateUpgradationplant.TheMRPdredgesabout40-60tonespershift.

C O NCENTR A T EU P G RA D ING P LANT ( C U P)

T

herawsandcollectedfromdifferentsourceshaddifferentcomposition.TheyarefurtherupgradedusingtheC

UP.IntheConcentrateUpgradingPlantenrichestheconcentratefromvarioussourcestoabove90%heavym

ineralsusingspiralseparatorsmakinguseofgravitytechniques.

MINERAL S EP A RATI O N P LANT(M S P )

I

nthemineralseparationplantindividualmineralsareseparatedmakinguseofthefollowingfourpropertieso

fthemineralsnamely

1. Electricalconductivity

Electrostaticseparationisusedinelectricalconductivity.



2. MagneticSusceptibility

Highandlowintensitymagneticseparatorsused.

3. DensityDifference

Floaterseparation.

4. SurfaceProperty

Frothfloatation.

T

heconcentratefromconcentrateupgradingplant(CUP)havinguniformcompositionwithabove90%

heavymineralscontentisdriedusingFluidisedBedDrier(FBD).Thisisthensubjectedtoelectrostatic

separationusingdifferenttypeofelectrostaticseparators.Therebyitisseparatedintotwofractionsna

melyconductingandnon-conductingfractions.

PR O DUCT I O N CAPAC I T Y O F C H A V AR A P L AN T

Ilmenite 15000tones

Rutile 9000tones

Zircon 14000tones

Leucoxene 600tones

Monazite 600tones

Sillimanite 8000tones

Zirconflour 6500tones

FigNo.13

ILMENI T E

MainlyusedinthemanufactureofTitaniumdioxide,awhitepigmentbysulphate

processalsousedintheproductionofsyntheticRutileandfortheproductionofFerroTitaniumproducts.

RUT I L E

R

utileusedforcoatingofweldingelectrodesandalsofortheproductionofTitaniumdioxidepigmentbythechl

orideprocessandfor theproductionofTitanium

TetraChloridefortheproductionofTitaniummetalandsponge.



S ILL I M AN I TE

S

illimanitemainlyusedinthemanufactureofhightemperaturerefractory.Itisalsousedinceramicindustry.

Z IRC O N

Zircon isused in foundries, ceramics and refractory. It isalso used in

themanufactureofzirconiumchemicals,metals,alloysetc.

Z IRC O NFL O UR

Zirconflourisusedinfoundriesforhightemperaturecastings.

M O NA ZI TE

MonaziteisusedfortheproductionofThoriumandrareearth’sbaseproducts.



PR O D UCT I O N P R O C E S S

Beachwastes Conveyors Screens 30TBin

Middling PrimaryAspirals

CupSpirals

SeavengerSpirals

Waste Middlings Tail

PlantQIL Conducting

IRMS

ILMENITE CBMS IRMS

IRMS

HTS

ToNCCircuit

Rutile IRMS Floatex

Spirals

FigNo.14



4. QU A L I T Y C O N T RO L D EPA R T M E N T :-

I

RELChavarahasgotISO9001:2000QualitySystemsestablishedformining,manufacturingandmineralpr

oducts.

O

neoftheprimaryfunctionsofthequalitycontroldepartmentistoensurequalityproductsaccordingtocustom

errequirements.Theyharnessbeachsandinenvironmentallyresponsiblemannertoproducemineralsandin

novativevalueaddedproducts,whichareusedtomakenovelproductsrequiredbycustomers.

S

econdly,theyareresponsibleformaintainingconsistantqualityofproductstothesatisfactionofthe

customers through quality management

systemimplementation.Theyalsoaimatfurtherimprovementofproduct,technologyorprocess.

T

hequalitycontroldepartmentisalsoresponsibleformaintainingconsistencyinqualityofrawmaterialsduri

ngtheprocessing,intermediateandfinishedproductstages.Theymakeuseofchemicalandmineralogicalte

stingmethodsineachstage.

I

nadditiontothesefunctionsthisdepartmentalsoconductsresearchanddevelopmentactivitiestosupportflo

wsheddevelopmentworkandforsolutiontoprocessrelatedproblems.

DEPA R T M ENT S TRUCTU R E– Q UALITYC O NTR O L

SectionHeadQ.C

DeputyManagerChemical

Laboratory

SeniorScientificOfficer

ScientificOfficer

DeputyScientificOfficer



Attenders

FigNo.15



F UNCTI O NS

• T

oensurethatrawmaterials,inprocessandfinishedproductsconfirmstospecified

requirementsholdingcompliancewithenvironment,healthandsafetyrequirem

ents.

• Ensuringcompliancetohealth,safetyandenvironmentalrequirements

IN S PECT I O NANDTE S TING P R O C ESSDETAILS

RawSand:-

1. T

heDWUPandHUPoutputandtailingaretestedfortotalheavymineralcontentasd

etailedinqualityplan.

2. T

herawsandfeedtotheQILplantiethedriedHUPoutputisanalysedasperqualitypl

an.

3. The rawsand being naturally occurring, the specifications are

o

nlydesirablevalues.Thevariationsinqualityofrawsanddonotaffectthequalityoff

inalproducts.Sonoreductionofrawsandisresortedto,eveniftheanalysisresultsare

notasforthequalityplan.

4. T

hesetestsarecarriedoutonlytomakeproperadjustmentsoftheprocessparameterst

osetthefinalproductofspecifiedquality.

I n - P r ocess I n s pec t i on :-

In-

p

rocessinspectionofcertainintermediatefractionasdetailedinthequalityplanarecarriedoutasperq

ualityplan.Theseprocessfractionsarenotrejectedeveniftheanalysisresultsdonotconfirmthedesir

eablespecifications.Theinspectionisonlyforsubsequentadjustmentsintheprocessparameters.

F i n i shed Pr oduc t s :-

1. T



heproductsundertestsareidentifiedbyayellowboardindicatingthedate,shiftandnumberofbags.Thosepro

ductspassedthetestsareidentifiedbyagreenboardindicatingdate,shiftandnumberofbagsandrejectedarei

dentifiedasredboardindicating“FORREWORK”.



2. I

nspectionandtestingoffinishedproductsarecarriedoutandrecordsintherespectiverecordasperqualitypla

n.Onlyproductsconfirmingtothequalityasdetailedintherespectivequalityplanaretakenintostock.Reject

edproductsaremaintainedwithauthorisationofHOD(Q.C).Inspectionandtestrecordclearlyindicatewhet

hertheproductisacceptedorrejected.

5. S T O R E S A N D D E S P A T C H DEPAR T M E N T :-

T

hestoresactasastoreandsupplychain,keepinginventoryoftheproductproducedonthehandandsupplyingr

equisiterawmaterialstothemanifolddepartmentontheotherhand.

A

lltheitemsin6theIREproperlystoredbythisfunctionarea,includingfinishedproductinventory.Itstoresfur

naceoil,machineparts,officeequipmentsandstationaryetc.

D EPARTMENT S TRUCTURE– S TR O ES&DE S P ATCH

DeputyGM

ManagerStores

StoresOfficer StoresOfficer

ClericalStaff ClericalStaff

Worker Worker

FigNo.16



Storesfallundertwocategories

1. CapitalItems

2. ConsumableItems

Capital items, which give return for long term

revenueitemsoraconsumableitemmeansthatwhichareconsumableonlyforashortperiod.

P

rocurementofitemsofcapitalnatureistobemadeonlyaftertheapprovalbythecompetentauthoritydulyveri

fiedbyinternalauditorswithpriorconclusioninthecapitalbudget.

S

toresactionisresponsibleforarrangingprocurementofallitemsorpurchaserequisitionsshallfromthebasis

forarrangingprocurementorotherdepartments,completeinallrespectsanddulyapprovedbythecontrolled

authority.Storesarepurchasedindigenouslyandfromforeignsuppliersthroughtheadoptionitsecurethem

ostcompetitivetenderingsystemisadoptedtosecurethemostcompetitivetendering,themostcompetitive

ratesand eliminatechanceoffavour.

Theworthofproductionintheplantiscurrentlybetween6-

7

Crores.Onceinevery3monthsinventorystatisticsispreparedandsendtotheheadofficeinMumbai.Storesf

ollowBincardandCardexSystem.Thisdepartmenthasthreemajorfunctionsasfollows

RECEI P T :-

T

heconsignmentitemsareproperlyverifiedwiththereceiptsandrequestedtheparticulardepartmenttomadei

nspectiononeachitems.

S T O RA G E :-

T

hereceiveditemsarestoredinproperlocationsandpreservethemuntiltheissue.EachitemhasitsownBincar

d.Thequantityreceived,materialissued,totalremainingarenotedintheBincards.

I S S UE :-

T

heissuemadeinfirstinfirstoutmethod.Afterthereceiptofthematerialinternalnotefromthedepartment,thei

ssuesaremadeandsameisrecordedintheBincard.

I NVENT O RY C O N T R O LE

Underthestoresdepartmenttheinventorycontrolfunctionisdone.

I



fexcessstockisobtained,itisproperlyinformedtothemarketingdepartmenttopromotesalesandifanyshort

ageobtaineditisproperlyinformedtoproductiondepartmenttoincreasetheproduction.UsuallyABCinven

torycontrolmethodsisadoptedinIREChavaraforcontrolofinventories.Theprincipletypesofinventoriesa

re:-



Y RawMaterial&Supply

Y GoodsinProgressthatisworkinprogress

Y FinishedGoods

F

orreductionofinventoriesfourstepsaretakenintheStoresandDespatchDepartment.Theyaredoingcompu

terization,codification,standardizationandvalueaddition.Alltheprocessinstoresdepartmentsarecomput

erisedandinventorymanagementsoftwareisusedforthispurpose.Codingisgiventoallinventories.Forthis

,alphanumericalcodeisused.Materialcodingishelptorealisewhatkindofinventoriesarestored.Andlocati

oncodinghelpstofindoutwhereitisstored.Bytheuseofstandardisation,physicalverificationofinventories

aretobedoneandtobecheckwhethertheinvoicenumberandpurchaseorderareequal.

D E S P A T C H S ECTI O N

D

espatchSectioncontrolsthetransportationofthefinishedproductsotheoutsidecompany.Whenacustomer

madeacompletesettlementofmoneyforpurchasingofaparticularproductfromthecompanythemarketing

departmentplacedadeliveryordertothedespatchdepartment.Thedespatchdepartmentthenpreparesaninv

oiceandgaveacopytothecustomer.Thisdepartmentalsopreparesgatepassandstategovernmentdeclaratio

nsheet.



6. I NTERNA L AUD IT DEPAR T M E NT :-

C

hiefGeneralManagerisdirectlylookingafterthefunctioningofInternalAuditDepartment.Manager(Inter

nalAudit)istheheadofthedepartment.Thereareinternalauditofficersandadministrativeofficersotherthan

accountantsandclerksworkinginthisdepartment.

I

nternalauditdepartmentisnotregulardepartmentinmanyofthecompanies.ButinIRELthisdepartmentish

oldingspecialprivilegeofauditinginto

e

veryaccountingmattersofIREL.Itisfunctioninginaccordancewithfinancedepartment.Itisnecessarytoge

tauditapprovedfrominternalauditdepartmentforthefinalisationofanythingconcernedtoaccounts.Theco

mpanymanagementisapprovingallotheraccountsintherecommendationofthisdepartment.

DE P ARTMENT S TR U CTURE–INTER N ALA U DIT

Manager

InternalAuditOfficer

Clerks Accountants

FigNo.17



F UN C TI O N S

1. Auditingallthefinancialtransactionsofthecompany.

2. Takingcorrectivemeasurestorectifyauditobjections.

3. MakingreporttoChiefGeneralManagerandBoardofDirectors.

4. M

akesurethateverydeedsoffinancedepartmentisinaccordancewiththeaccounting

policiesofthecompanies.

5. Toparticipateinthefunctioningofstorepurchasecommittee.

6. TocheckthelegalvalidityofthefinancialmattersofprojectscommittedbyIRELtd.

A

lltherelevantpoliciesofthecompanyareasthebasicpoliciesofthisdepartment.InternalAuditDepartmentis

auditingtheaccountsquarterlyandsendingreporttoChiefGeneralManagerregularly.



7. RE SEA R C H& D E V E L O P M E N T D EP A RT M E N T :-

ThecompanyhasawellequippedResearch

a

ndDevelopmentfacilitiestosupportflowsheetdevelopmentworksandforsolutionstoprocessrelatedprobl

ems.ThelaboratoryisequippedwithlabmodelsofMagneticSeparator,

HighTensionSeparators,WetShakingTablesandFrothFloatationEquipmentetc.

DEP A RT M ENT S TRUCT U RE– R E S EARCH&DEVEL O P M E N T

HODR&D

SectionHead

R&DDeptPersonnel

FigNo.18

F UN C TI O N S

1. Newproductdevelopment.

2. Newcompounddevelopment.

3. Selection&Evaluationofalternativemethod.

4. Testingofnewproducts.

5. Toanalysisandassistplantsinproblemsolving.

6. Ensurequalityofrawmaterialsandfinishedproducts.

7. MaintainQuality.

8. Research&Developmentattempts.



T

hedepartmenthaswellmentionedqualityobjectivesandwellpracticedqualityassurance,qualityimprove

mentprogram.Thedepartmentusesmineralogicaltestingmethodsformaintainingconsistencyinqualityof

rawmaterials,finishedproductsandworkinprogress.Thecheckingofmineralsqualityisdoneonabatchbasi

s.

8. P R O J EC T& M A I NTAN A NC E D EP A RT M E N T :-

T

hissectionislookingaftertheprojectsandmaintenanceoftechnologicalaspectsofaffairsofthecompany.Th

isisasectioninwhichmechanicalexpertsareworkingondifferentprojects.Thissectiontakesovertherespon

sibilityofvariousprojectstakenupbyIRELtdmanagement.Theyaremakingeffortstoexpandtheareaofper

formanceofthecompany.

F UN C TI O N S

1. T

ocarryoutpreventiveMaintenancetoensurecontinuouscapabilityandtoatt

endbreakdownmaintenanceifany.

2. ProjectsonminingareaofIREL.

3. Projectsontechnologicaldevelopment.

4. Projectonqualityassurance.



DE P ART M E N T S TRU C TURE–PR O JECT& M A I NTANA N CE D E P ARTMENT

UnitHead

HODMaintanance

SHHUP

SHElecMSP

SHAuto

SHElecHUP

SHMech

SHElec.

SHDWUPI

SHMSPII

SHDWUPII

SHMSPI

SHDWUPIII

MaintanancePersonnel

FigNo.19



9. M ARKE T I N G& S A LE S DE P ART M E N T :-

M

arketingisasocialprocessbywhichindividualsandgroupsobtainwhattheyneedandwantsthroughcreating

,offeringandfreelyexchangingproductsandservicesofvaluewithothers.Itistheartofsellingproducts.Mar

ketingdepartmentisfunctioningunderthecontrolofGeneralManagerofmarketingdepartment.

M

arketingoccupiesanimportantpositionintheorganisationofanybusinessunit.Marketingfunctionsarenotl

imitedtothefunctionofbuyingandsellingbutstorage,riskbearingandaftersalesservicesetc.marketingisav

italconnectionlinkbetweentheproducerandcustomer.

The marketingsectioninthe IREis underthe

d

irectcontrolofchiefGeneralManagerandthissectionisheadedbythedeputyGeneralManagerinhisjob.The

marketingactivitiesinthecompanyareindirectlylinkedwiththesalessection.

I

REhasthemonopolyinthefieldofrareearthproducts.IRELtd,Chavaraisengagedintheproductionofminer

alssuchasIlluminate,Rutile,Zircon,Sillimanite,andBrownIlluminatefromnaturallyavailablebeachsand

products.ItalsoproducesvalueaddedproductslikeZirflour,Microzir.Onspecificrequirementsofcustome

rsthecompanyalsosuppliesSillimanitepowderbysubcontracting.AmongtheseIlluminate,Rutile,Zircon,

BrownIlluminatearecategorizedas“ScheduledMinerals”forwhichthecustomerisrequiredtoobtainlicen

sefromtheDepartmentofAtomicEnergy(DAE)Mumbaifortheirpurchase.

Of

flate,morestresswasgivenasthemarketingactivitiesofIRE,bythecompany,becauseofcompetition,which

isgrowingintheinternationalmarketandalsoinIndianmarket.Anewerahasbeenputupinthecompanyforth

ispurpose.

T

hebyeproductsofIREareZirflourandMonazite.TheyaremainlypurchasebytheKundaraceramicsforthem

anufacturingofceramics.ThemaincustomersofIREaretheGovernmentofIndiaandotherprivatecompany

.ThemainforeigncustomersareUSA,Canada,UK,France,WestGermany,Japanetc.

O B JECT I VES O FM A R K ET I NGDEP A RTMENT

YMaximumturnover

YMaximumprofit

Y Maximumcustomersatisfaction



YMaximumcustomerrelationship



T

hechiefGeneralManagerofIREishavingthecontroloftopmostlevelinmarketingdepartmentofthisunit.Th

erearefoursuperintendentsandaclerkengagedinthesalesdepartment.IRELtdisworkingundertheadminis

trativecontrolofDepartmentof

A

tomicEnergy.Theheadofficedoesthepricingofproducts.ThecustomersofIRELtdaremainlyheavyindust

rieslikeplant,glass,refineries,ceramicsetcforbulkpurchasescustomerandprovideddiscount.

S A LES AN D D I S T R I B U T I O N S Y S T E M

H

eretheorganisationhasbeenenjoyingmonopoly.That’sthereasonwhytheydon’twanttomakeadistributio

nnetwork.Directsellingisthemainsystemoforganisation.Thecustomerprimarilypaysthefullamountasde

manddraft(DD)inadvanceandthenthecompanygivestheproducts.

Fordomesticsales,orderarereceivedas

1. Throughheadoffice

2. Directlyfromthecustomers

3. TransferredfromtheunitsofIRE

A

ll(exceptZirflour,MicrozirandSillimanitepowder)aredispatchedagainstpermitsobtainedafterpayment

ofprescribedroyaltybyIREinadvancetothedepartmentifminingandgeology,governmentofKerala.

S

tartingwithgeneralconditionforsales,majorityofthecustomersplaceordersdirectlywithChavara.Someti

mesheadofficealsofixesquotacustomerswiseifnecessary,forthesupplyofmineralsandintimatestimetoti

me.Ifalltheformalitiesarecompleteddeliveryinstructionsaregivenbythesalesdepartmenttostoresfordeli

veryofthematerialstothecustomers.

Ex p o r tin g

E

xportingcontractbetweentheseller(IRE)andthebuyer(customer)isfinalizedattheheadofficeandintimate

sChavararegardingtheexportcontractalongwiththecopiesofagreement,purchaseorder,proposedloadin

gscheduleandmanyotherspecificinstructionsfortheexecutionoftheorder.Chavarasendssamplesandpro

ductspecificationtothecustomerifrequiredbyheadoffice/buyer.

E

xportingcarriedoutthroughNeendakarabutnowitsthroughCochinport(BaggedCargoonly)shipmentthro

ughCochinportisdonebyC&Sagentsappointedbyseller.



P r i c i n g

Pr

icingisaverycrucialdecisioninmarketingmanagement.Theobjectiveofthefirmistogetmaximumprofit.T

hisdependsuponthecorrectdecisioninpricing.Pricingreferstotheprocessoffixingtheprice(moneyvalue)

ofaproductorservice;pricingisanimportantfunctioninmarketingbecauseitdeterminesthesalesvolumean

dtheamountofprofit.Aproductisacceptabletothecustomerwhenitisreasonablepriced.Asoundpricingpol

icyhelpstosatisfycustomersandtoyieldprofit.Determinationofpriceisinfluencedbylargenumberoffacto

rssuchascostofproduction,degreeofcompetition,natureoftheproduct,pricingobjectivesandpoliciesofth

efirmetc.

S a mpl e s t o t h e c u s t o m e rs

S

amplesaresendingtothecustomersontheirrequestoraspertheinstructionsfromtheheadofficefortheireval

uationofsustainabilityfortheirrequirements.Freesamplesaresendtothecustomersasperthefollowingpro

cedures.

U

pto500Gms:headofthedepartment(marketing)intimatessectionhead(QC)topreparesamplesofrequiredqua

ntityalongwiththegatepass.

50

1Gmsto1kg:headofthedepartment(marketing)priorapprovalfromtheunitheadandfollowstheabovepro

cedures.

Above1kg:headofficeapprovalwithinformationtounitheadandfollowstheaboveprocedure.

C u s t o m e r v i s i t

conditions.

Every quarter, 5 customers are selected for a visit to know prevailing market

C u s t o m e rfee db ack

E

veryyearcustomerfeedbackquestionnairesarecirculatedtothecustomersandfeedbackiscompiledforchalkin

gandoutsuitablestrategyforthefuturemarketing.



T h esa l es d e p ar t m e n t m a i n ta in s th efo l l ow i n g r e c o r d s

YContractreviewchecklistfordomesticsale.

Y G

overnmentofKeraladepartmentofminingandgeologyandadvanceremittanceandcorresponding

permitregister.

YQuotations

YPerformainvoice

YPaymentregisters

YDAElicenseregister

YPriorityregistersYD

eliveryregistersYSal

es register

YShippingregister

Y Dailystatementofproduction,salesanddispatch

YQuarterlystatementregardingexport

YMonthlyreporttocabinet

Y Production,saleandstockofminerals(monthly)

Y Performa for submitting quarterly export performance to federation of Indian

exportorganisation

YCOB license

YGeologypermitregister

YC-form,D-form,form18register

YPricelistofminerals

YStatementshowingproduction,salesandvalue(Quarterly)

YContractreviewchecklistforexports

YCashreceipts

YBankreceiptvoucher

Y Dailyinformationtosales26,pendingordersofminerals(daily)

YDDregister

YGatepass

YEnquiry/order/amendmentfromparties



YCustomerfeedbackquestionnaires

YCustomerfile



10. F I N AN C E D E P A R T M E N T :-B

usinessfinanceisconcernedwiththeacquisitionandutilizationoffundsrequiredtomeetthefinancialneeds

ofabusinessenterprise.Financingistheprocessofplanning,acquiring,utilizingandcontrollingthefundsus

edinanykindofbusiness.Financeisthelifebloodofbusiness.Everyenterpriseorcompanyrequiresfinancet

ostarttheworkandgrow.

Acompanygenerallyrequires largeamount

o

fcapital.Apubliccompanycanraisehugecapitalthroughissueofshares.Inadditiontosharecapitalitcanutili

zeretainedprofitintheformofreserves.Itcanraiseborrowedcapitalthroughdentureandloans.Longtermloa

nscanbeobtainedfromfinancialinstitutions.Shorttermloans areavailable from commercialbanks.

D E P ARTMENT S T R UCTURE– F INA N CE

ChiefGeneralManagerFina

nce

DptyGeneralManagerFin

ance

SeniorFinanceOfficer

DptyFinanceOfficer

Assistants

FigNo.20



SO URCES O FAC O M P ANY

1. Onthebasisoftime.

2. Onthebasisofpurposeoruse.

3. Onthebasisofsourceoffinance.

4. Onthebasisofrisk.

F

inancereferstomoney,cashorhandavailablefortheoperationofbusiness.Financemaydodefinedasthereq

uirementoffundswanted.Itisthelifebloodofbusinessactivity.Thebusinesspulsateswithlifeonlythroughfi

nance.Financereferstomoney,cashorhandavailablefortheoperationofbusiness.Financialmanagement

willincludeplanning,organising,directingandcontrolling.

Themainfunctionsofthisdepartmentare:-

1. Tocollectallthereceiptsandmakeallthepayments.

2. Torecordallthetransactionsandpreparethefinalaccounts.

3. Maintaintheaccountsaspertheprovisionsofthesection20(g)oftheCompaniesAct1956.

4. Providedepreciationattherateprescribedinschedule14oftheCompaniesAct1956,ona

straightlinemethod.

5. Toaccountexcisedutyongoodsmanufacturedwhenitisdispatched.

6. Toascertaintheaccruedgratuityliabilityofthecompanyonthedateofbalancesheet.

7. To value finished goods at cost or market price whichever is lower, stock of

rawmaterials,sparesandchemicalsarevaluedatweightedaveragemethod.

8. Treattheclaimsagainstthecompanywhicharenotadmittedascontingentliability.



C H I E F G E N E RALMANA G E R

Thefinancedepartmentisheadedbythe ChiefGeneral

M

anager(Finance).ADeputyGeneralManager(Finance)istheretoassisttheChiefGeneralManagerintheop

erationsofthedepartment.Inadditiontothemthedepartmentconsistsof3seniorfinanceofficers,8deputyof

ficersandattenders.

A U THO RI T Y , R E S P O N S I B I L I T I ES A N D R OLE S :-

AUTHORITY

Y Approvalofpolicy,objectiveandtargets.

Y Approvalofapexmanual.

Y Defining responsibilitiesand authority of head of departments,

managementrepresentatives.

Y Authorizingvariouscommittees

YApprovaltrainingprogramsoffinancialcommitment.

Y

Authorizationofdecisiontakenatreviewmeetingsuchassafetyandenvironmentalprotecti

oncommittee,environmentmanagementcustomerserviceandcomplaintredeemedandpr

otectionmeetings.

RESPONSIBILITIES

Y OverallresponsibilityforhealthandsafetyofIRE,Chavaraunit.

Y Claimingthereviewmeetings.

Y Responsibilityoftheheadofficefromtimetotime.

Y Ensuring that unit has organized celebration including those related to

health,safetyandenvironmentthroughconcerneddepartment.

YProviding resources for the implementation main tenanceand


OrganisationStudyonIRELChavaracontinuedimprovementofmanagementsystems(inconsultationwithHOrequired).



Y ImplementationofdirectivesreceivedfromHO/statutoryagencies.

Y Ensuringsmoothprogressofproject(includingfeedbackofHOontheprogram).

ROLES

Y EnsuringsmoothdaytodayfunctioningorganisationthroughconcernedHOD/sectionhead.

Y Roleasheadoftheunitinthehealth,safetyandenvironmentrelatedcelebration.

Y Participationinemergencyevaluation(Bothmock/actual)

Y Compliance tosafetyrelated requirements includinguse of personal

protectionequipmentsasarolemodelforothers.



11. M ED I C A L DEPAR T M E N T :-

Aneffectiveandefficientmedicaldepartmentisfunctioning

i

nIRELChavara.Everyfamilymemberoftheemployeeiseligibleforfreeattendanceandtreatmentinthedisp

ensary.CasesbeyondthescopeofthedispensarywillbereferredtomajorhospitalswhicharecenteredinKoll

amandKarunagappally.Thewholepaymentissuchcasesaredonebythecompanyitself.Thedispensaryisw

orkingaroundtheclock.

F UN C TI O N S

1. Tocarryoutmedicalexaminationofemployeesandtheirfamilymembers.

2. Examiningcompliancetoenvironmentalrequirements.

S

eniorManager(Medical)isthetopmostauthorityoftheMedicaldepartment.SeniorManagerisfollowedby

aSectionHead/LadyDoctor.ThedepartmentcomprisesoftwoDoctors,threePharmacists,threeNurses/

Compounders,LaboratoryTechnicianandanAmbulanceDriver.

DE P ART M E N T S TRU C TURE- M ED I CAL

HODHRM

HODMEDICAL

SHMEDICALLadyDoctor

Nurses/Compounder

PharmacistL

aboratoryTechnician

AmbulanceDriver

FigNo.21



P R O CE S S I N V O L V EDINMEDICALDE P ART M ENT

A. OutPatientService:

a) Employeesandtheirdepartmentsareprovided

f

reemedicalservices.Forthiseachemployeehasbeenallottedapersonaldispensaryfileinwhichnameofthed

ependantsareincludedasperthefamilycardissuedbythewelfaredepartment.Properrecordingoftheailmen

t,investigationandtreatmentoftheemployeesandthedependantsareenteredinthepersonaldispensaryfile.

Unfitandfitcertificateareissuedbythemedicalofficersintheprescribedformforavailingsickleaveandforr

ejoiningthedutyaftersickleave.

b) P

atientswhorequirespecialist’sopinion/

d

etailedinvestigationaresenttorecognisedhospitals/

g

ovt.hospitals/

a

pprovedlaboratorieswithareferenceletter.Listofapprovedhospitals/

l

aboratoriesasapprovedbyHOismaintainedbyHOD(Medical).Patientsaretakentorecognisedhospitalonl

ywiththereferenceformissuedbymedicalofficer.Intheabsenceofcompanymedicalofficer,patientsareiss

uedatemporaryreferencecardvalidforonedaybythedutyPharmacist/

N

urseforimmediateadmissionincaseofemergencyandwithin24Hrsthereferencecardissuedbythemedical

officeristobecollectedbytheemployee.

B. O c c u p a t i o n al H e a lt h S e rv i ce (O H S ) : -

Pre-employmentMedicalExamination:-

N

ormallyrecruitedemployeesbeforejoiningaredirectedtoundergoamedicalexaminationbythemedicaloff

icer.Medicalexaminationiscarriedoutasperthepre-employmentmedicalexaminationreport.Thepre-

e

mploymentmedicalexaminationreportissendtotheHOD(HRM)forimplementingtherecommendationo

ftheHOD(Medical).



C. P e r i o d i c al M e d i calExa m i n a ti on : -

I

naccordancewithAtomicEnergyRegulatoryBoard(AERB)periodicalmedicalexaminationforallcantee

nworkersandclarifiedradiationworkersiscarriedoutonceinayearandforotherradiationworkersandother

generalworkers,itiscarriedoutonceinfiveyears.EmployeesaredirectedtoHOD(Medical)asperthelistnot

ifiedbytheAdministrativesection.Thesewhoareexposedtohighnoise,lossofhearingbentarealsoconduct

edandfeedbackisgiventotheconcerneddepartment.



D. P r e - r e t i r e m e n tM e di calEx a m in a ti o n :-

Concernedemployeeisgivenintimation

fromadministrationsectionatleasttwomonthsbeforethedateofretirementtocarryout pre-

r

etirementmedicalexaminationwithacopytoHOD(Medical).Basedonthis,medicalexaminationiscarried

outonemonthbeforetheretirementofeveryemployeeandnecessaryadviceisgiventotheemployeeforhisfu

turehealthmaintenance.



12. S E CU R I T Y D E P A R T M EN T :-

S

ecurityofthecompanyassetsandpremisesisvestedinthehandsofthestaffsofsecuritydepartment.Thedepa

rtmentisleadby Security Managerand he isassistedby6HeadSecurityOfficersand26SecurityGuards.

DEPA R T M ENT S TRUCTU R E– S E C URITY

GeneralManagerHR

M

ManagerSecurity

HeadSecurityOfficers

SecurityGuards

FigNo.22

F UN C TI O N S

1. Togivesecuritytothecompanyanditsassets.

2. Tomonitortheentryofemployeesandvisitors.

3. According to ISO procedures they maintain the discipline of

theemployees,theiruniformetc.

T

hereare32securitypersonnelintotal.Thesecuritydepartmentalsogivesprotectiontocompanyequipments

inminingarea.7personsaredeployedatPuthenthura,7atVellanathuruthuand16attheplantitself.

T

womajorthreatspresentsinIRELaresabotageandtheft.Topreventsabotagethereisacontrolroomanditacc

essibleateverytime.Incaseofemergencythesystemswillautomaticallyshutdownandemergencyalarmwi

llblow.Atthattimealltheemployeesarerequiredtoassembleintheassemblypoints.Anothersecurityproble

mfacedbyIREListheft.Thereisnoclearboundarywallforthecompany.Thismayencouragepersonstotake

awaycompanyassetswithoutpermission.



13. S AFE T Y A N D E N V I R O N M E N T D EP A RT M E N T :-

I

nthepresentdayindustrialscenarioalltheindustrieshadacceptedthefactthatsafelyimprovesproductivity.

I

RELChavarahasalwaysbeenintheforefrontinensuringsafety,welfareandbetterworkingenvironmenttoallits

employees.Theirsafetysloganis

“Letevery d ay b eas a fe d ay”

DEP A RT M ENT S TRUCT U RE– S AFETY&EN V IR O N M E N T

HODS&E

SHSafety&Environment

SHFireProtection

S&EdeptPersonnel

FigNo.23



M I SS I O N A N D P O L I C Y O F T H E DE P AR T M E N T

MI SS I O N

T

hemissionofIREListobeamajorsupplierofbeachsandmineralsandrareearthcompoundsinthedomestica

ndinternationalmarket,developandproducechemicalsofstrategicimportance,valueadditionwithduereg

ardtoresourcesutilizationandsafetyprotection.

Con

sistentwiththismission,IRELenvisagesasafetyandenvironmentprotectionpolicythatprovidesasafetyw

orkingenvironmenttopreventinjuryandillhealthtoitsemployees.Italsoensuresenvironmentalprotection

byminimizingenvironmentalinputthatmayarisefromitsoperationsandprovideappropriateenvironment

alplanstomaintainecologicalbalanceandabove

allrecognizestheuseforsafetyculturemanorganisationto enhance

theawarenessandcommitmentofallemployeestosafety.

P O LICY

IREL purpose to update and review the safety policy periodically taking

intoconsiderationitsindustrialexperiencesadvancesinthetechnologyandregulatoryrequirements.

E N V I R O N M E NT A L P O L I C Y

I

RELChavaraiscommittedtoprotect,conserveandimprovetheenvironmentinwhichitoperatesforthecontinu

edexistenceinthebusinessthroughout

Y Conservationofnaturalresources

YMinimisingpollution

Y

Compliancetoapplicableenvironmentalrulesandcorporateguidelines,periodica

lhealthmonitoringofemployeesandcreationofenvironmentalawarenessamonge

mployees,customersandsuppliers.



SAF E T Y G U I D E

I

RELChavarafollowsstrictsafetyguidelines,whicharegiveninthecompany’ssafetyguide.Safetyteamwil

lupdatethesafetyguideaspertherequirementtothrowmoreclearlightontheprocessesaswellasequipments

engagedintheplant,includingprocedurestoensurethesafetyofbothmenandmachinery

T

hereareDo’sandDon’tsenlistedinthisguideandthiswillbequitehelpfulinavertingtheslightestpossibilityo

faccidents.

SAF E T Y G U I DEL I N E S

areasfollows.

Inordertoachievethepolicyobjectivecertainguidelinesareusedsomeofthem

C O RP O R AT E L E VE L SAF E T Y

Y AnofficeroftherankGeneralManagertoco-

ordinateatthecorporateofficeallsafetyenvironmentandtrainingactivitiesofvariousunits

andtakes necessarystepsforeffectiveimplementationofthispolicy.

Y

G

M(S&E)assistedbythreeseniorofficersattheheadquartersoneachofthesafety,environm

entandtraining.

Y

T

hecorporatesafetysetuphasbeenprovidedwithadequateadministration/financialsupport

forcoordinatingsafetypolicy.

Y

H

eliaisonswithvariousoutsideagencieslikeAtomicEnergyregulatoryboardSARCOPheal

th,physicsdivisionofBARC,DGMofminessafety,ministryofenvironmentandforestetcf



orfulfillingthestatutoryrequirements.

Y

Hea

ssessesthetrainingneedsforvariousareasandgrangesfordifferentcategoriesofemployee

s.

Y

H

einteractswithsafetyteams/expertsforcarryingoutsafetyaudit/environmentauditsandas

sessmentofsafetyperformanceforawardofshieldetc.



UN I T L EVE L S A F E T Y S E TU P

Y Theheadofeachunitwillbeexecutivedirector/chief/GM.

Y Hewillbeex-

o

fficechairmanoftheplantlevelsafetyandenvironmentprotectioncommitteewhichwillre

viewthemonthlysafetystatusoftheplant.

Y He will implement all the applicable statutory provisions of safety

andenvironmentalcontrolintheunit.

Y

He

willnominateseniorlevelofficerassafetyandenvironmentalcontrolofficerwhowilllooka

fterthesafetyandenvironmentalcontrolaspectsoftheunit.

Y He will ensure that operating procedures are followed strictly and

technicalspecificationsarenotviolated.

SAF E T Y A N D E N V I R O N M E NT A L P R O T E CT I O N C O M MI T TE E

Y

T

hetermofmembersofthecommitteewillbetwoyearsandthecommitteememberswillbem

eetingonceinamonth.

Y

T

hecommitteewillorganizesafetyday/environmentalday/firedayandminessafetyweekan

nuallyandholdcompetitionamongtheemployees

relatingtosafetyandenvironmentduringthecelebrations.

Y



T

hecommitteewilldiscussthemeasuresagainsttheunsafeconditionsandpracticesinthemin

e/plantaspointedoutinthereportofworkmen’sinspectors.

Y

T

hecommitteewillconsidersafetyandhealthmeasurestobetakenbeforecommencementof

operationsofanynewelectrical/mechanicalequipmentproposes.

Y SummaryofminutesofthemeetingwillbesenttotheGM(S&E)regulatory.



S T AND I N G O RDE R F O R W O R K M E N C O NC E RN I N G S A F E T Y

I

RELstandingordersforworkmenalsoenvisagesthesafetyoftheorganisationandrelevantclauses.

P E R S O N AL P R O TECT I VEE Q UI P MENTS

Itisdividedintotwocategories

Y

P

ersonalprotectiveequipmentforthevariouspartsofthebodyi.e.head,eye,ears,face,hand,a

rms.

Y

Res

piratoryprotectiveequipmentrequiredwhenworkersexposedtoatmosphericcontaminan

tslikedust,fuel,gasesandchemicalsletoffintheairinthedangerousconcentration.

P R O TECTI O NE Q U IP MENTS U S ED A RE:

Y Headprotective

Y Safetyshoes

Y Safetybeltsandlifelines

Y Dustrespirators

Y Eyesandfaceprotection

Y Earmuffs

Y Aprons

Y Gloves

Y Respiratoryprotectiondevices



14. PU RC H AS E DE P ART M E N T :-

T

hemainfunctionofpurchasedepartmentisprocurementofmaterialsatcompetitiveprice.Allitemsincludin

grealmaterialsotherthanrawsandarepurchasedbythisdepartment.InIRELtdthepurchasedepartmenthad

primeimportance.

F or m a l i t i e sof p u r c h ase

1. Floatenquirytotherightsource

2. Scrutinizequotation

3. Obtainingapprovalofthefinancedepartment

4. Releaseanorder

5. Followupreceiptatthestore

6. Assistancetogivepaymentintime

F or m a l i t i e sof p l ac i n g a n o r d e r

1. Originationofintent

2. Tenderenquires

3. Openingoftenderonthedatamentioned

4. Analysisofalltender

5. Technicalevaluationofthetender

6. Selectionofthebestone

7. Negotiation withthepartyneeded

8. Approvaloftheselectedtender

9. Orderplacing

10. Followup



15. C I V IL D E P A RT M E N T :-

M

aintenancehasadirectimpactoneverythingthataffectstheoverallhealthandwelfareoftheorganisation.As

oundmaintenancestrategyshouldthereforebeconsideredavaluabletoolusedtoassessequipmentcapabilit

yandthecontinuousimprovementeffortsofassetperformance.

C

ivildepartmentconsistofdeputymanager(civil),twodeputyofficersandtheworkforce.Theyfrequentlymo

nitorcompanystructuresandmaintainthemproperly.Incaseofnewprojects,thebaseinfrastructurehastobe

erectedbythisdepartment.

D E P ARTMENT S T R UCTURE–C I VIL

HOD(Civil)

SectionHead(Civil

)

CivilDeptPe

rsonnel

FigNo.24



S W O T A n a l y s is

S T REN G T H S

Y

H

ighlyskilledmanagersandexperiencedworkmenhavingexcellentknowledgeandexperienc

eaboutminingandproductionprocess.

Y ConstantUpgradationoftechnology.

Y

A

strongandsymbioticrelationshipbetweenthetoplevelmanagementandthelowerlevelemplo

yees.

Y Technological collaborationwith the Australiancompany, ROCHE, one of

thelargestmineraltechnologyprovidersintheworld.

Y Abundanceofrawmaterialsinthecompanypremisesitself.

Y SupportfromgovernmentofIndiaandthedepartmentofatomicenergy.

Y Highconcerntowardstheemployeesandenvironment.



W E A K N ES S

YMiningproblem.

Y Diminishingsupplyofrawsand.

Y

T

heinabilityofthemanagementtocontroleffectively,theresistanceraisedbythelocalpe

opleinformcrises.

Y Excessnumberofcivilworkers.

YHighlabourcharges.

Y Duetomonopolypromotionalactivitiesareless.

Y Decisionmakingprocessishighlytimeconsumingandcomplicated.

Y Shortageofpowersupply.



O P P O R T UN I T I E S

Y Highdemandforproducts.

Y GrowingdemandforTitanium,Zircon,Thorium,Rutile,Ilmeniteininternationalmarket.

Y FastergrowthrateofmarketsinAsiancountrieswhereextractionfacilitiesarelimited.

Y Therecenteffortstotie-upwithotherminingcompanieslikeKMML,Chavara.

Y The favorable state government policies like prohibiting the entry of

privatecompaniesintotheminingsector.

Y As a strategicallyimportant company it is always backed by the centralgovernment.



T H R E AT S

Y EntryofprivateplayerssuchasTATAgroupintotheareaofblacksandmining.

Y Overinterventionofexternalpoliticalgroupsincompanyaffairs.

YFluctuatinginthevalueofcurrencywhichadverselyaffectstheexportincome.

Y Increasingtransportationcost.

Y Protectformenvironmentactivists.

YRapidtechnologicalchangesinproductionprocess.

Y Changesingovernmentpolicies.



F I ND I N G S

Y Theemployeesweresatisfiedwiththewelfarepolicieswhichareinpracticeandthescaleofpayatpresent.

Y Majorityof the workmen were wellexperienced and possess greatamount of

knowledgeparticularlyrelatingtotheminingandproductionprocess.

Y Themanagerswereoverloadedwithworkbuttheyperformwellabovetheexpectations.

Y Theinterventionbytheexternalpoliticalpartiescontinuestobeadisturbanceinformulatinglabourpolicies.

Y Thecompanyhasastrongcommitmenttowardsthesociety.



SU GG ES T I O N S A N D RE C O M M E NDA T I O N S

YIRELshouldtakeadvantageofthegrowingdemandforheavymineralsbyincreasingtheproduction.

YThemanagementshouldsustainthefaithofthelocalpeoplebyconstantlycommunicatingand

e

xplainingthecompany’spoliciestothem.Thetrustofthelocalpeoplecanbeensuredandsustainedb

yconstant interactionandcommunication

w

iththem.Thecompanycanachievethembyundertakingmoresociallyresponsibleactivities.Thism

aybeintheformofmedicalfacilitiesrunningschools,assistanceatthetimeofseaerosionandtrawlin

gban.Theycanalsoprovidewaterandelectricitysupplytothelocalpeople.

YThecompanyshouldtrytominimizetheexternalinterventionsof variouspoliticalparties.

Y Thecompanymusttakefulluseofthefavorablegovernmentpoliciesatpresent.



C O NCL U S I O N

I

RELisoneamongwellperformingcompaniesinKerala,engagedintheprocessofprocessingrareearthprod

uctsavailableamongthecoastalbelts.IREisreachingnewboundarieswithitsperformance.IREwasincorp

oratedon18thaugust1950asaprivatelimitedcompanyundertheIndiancompany’sactof1913jointlybytheg

overnmentofIndiaandthegovernmentofTravancoreCochin.In1951,IRELbecameapublicsectorunderta

kingandtwo

m

ineralseparationplants,oneatManavalakurichiinTamilnadu(1967)andtheotheratChavarainKeralastate

(1970)weresetup.

T

heorganisationstudyatIREltdwasanunforgettableexperience.Theorganizationalatmosphereprevailing

atIREisnotthatofapublicsectorunit.Theconcernfortheenvironmentandsocialresponsibilityareworthstu

dying.Thestudyhelpedinhaving

a

practicalexposuretorealpracticeinorganisation.Thestudyprovidesinsightintothefunctioningandcoordi

nationofdepartmentsinaneffectiveorganization.


Appendices OrganisationStudyonIRELChavara

BALAN C E S H EET A S A T31.03.2009

31.03.2009(InCrores)

31.03.2008(InCrores)

I. SourcesofFunds

1. ShareholdersFund

a. Capital

b. Reserve&Surplus

2. Loanfunds

S

ecuredLoanUnse

curedLoans

II. ApplicationofFunds

1. FixedAssets

a. Grossblock

b. LessDepreciation

c. Netblock

d. Capitalworksinprogress

e. Assetspendingdisposal

2. Investments

3. DeferredTaxAssets(Net)

4. C

urrentAssets,loans&AdvancesC

urrentAssets

I

nventoriesSundry

Debtors

Cash

&BankBalanceOtherc

8636.50

38,629.23

-

3,320.42

50,586.15

8636.50

34,973.31

9.31

4,427.23

48,046.35

43,062.7843,955.80

24,495.93 22,801.74

19,459.87 20,261.04

709.82 672.21

0.49 15.74

20,169.58 20,948.91

1.42 1258.51

1603.98 523.34

6020.81 5500.08

833.48 2641.61

27281.30 23381.71

1485.22 600.66

7577.76 7103.19

43,198.57 39,227.25



LessCurrentLiabilities&Provisions

a. CurrentLiabilities

b. Provisions

NetCurrentAssets

5.MiscellaneousExpenditure

5631.43

8908.35

6134.58

7893.95

14,539.78 14,028.53

28,658.74

152.38

25,198.72

116.79

Total 50,586.15 48046.35


PR O F I TANDL OS SA / CF O RT H EYEAR E N DED31 . 0 3 . 2009


31.03.2009 31.03.2008I. INCOME

GrossSale

Less:Exciseduty

Compensationforprocessing

Th

oriumIncrease/

DecreaseinStockOtherIncome

II. EXPENDITURE

M

aterialsConsumedEmployeesRe

muneration

andB

enefitsManufacturingand

other

B

enefitsInterest

Depreciation

Capitalexpenditurenot-

representedbythecompany-

Writtenoff.

III.P

rofitbeforeextraordinaryitemsprio

rperiodadjustmentsandtaxation.

E

xtraordinaryitemsaspriorperiodadj

ustments

33,669.82

13.83

29,625.02

27.77

33,655.99 29,597.25

1,443.84 1,918.25

50.46 778.74

3,873.74 2,662.29

3,790.89 3,045.24

14,864.69 11,449.21

9,850.06 10,009.49

233.36 219.29

1,973.30 2,164.10

- 12.40

30,712.30 26,899.73

8,311.73 8,056.80

(23.68) 14,818.98

8,288.05 22,875.78

2,611.25 7,318.29



ProfitafterTax

Balancebroughtforward

I

V.ProfitavailableforappropriationApp r o

p ri a t i on :-

P

roposedDividendT

axonDividend

TransfertoGeneralReserve

BalanceCarriedtoBalancesheet

5,676.80

33,263.05

38,939.85

1,727.30

293.55

1,000.00

35,919.00

15,557.49

21,226.41

36,783.90

1,727.30

293.55

1,500.00

33,263.05

38,939.85 36,783.90



B I B L I O G RAPH Y

1. C.R.Kothari–ResearchMethodologymethodsandTechniques.

2. PrasadL.M–Principalsandpracticeofmanagement.

3. KottlerPhilip–MarketingManagement.

4. Rejimon.P.M–Indianrareearthisgoingtoexpand.

5. Rejimon.P.M–50CroresrupeesexpansionprograminIRE.

6. IRELBroucher–ApexmanualanddepartmentalproceduresofIREL.

7. http://www.indianrareearths.com

8. http://www.irel.gov.in

9. AnnualReportsandJournals