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INTRODUCTION

Organizations play major role for the overall development of the country. Different organizations meet the demands of the people by providing them with product and services. Due to globalization the world has become a global village. This has very much helped people to get their needs. Kerala is a land enriched with heavy minerals deposits. the western side of Kerala has been in the healing touch of Arabian sea and the southern part of seashore has the rare and rich deposits of minerals, stretch along with seacoast beaten tidal channels that are between Kayamkulam and Neendakara, at tract generally known as Chavara coast is situated. The main content of these sands in these areas are Ilmenite, Rutile, Leucoxene, Silimanite, Zircon and Monazite. Out of these the first three are Titanium bearing minerals. To make use of these materials, The Kerala Minerals and Metals Limited (KMML) has been setup. KMML, a leading profit earning enterprise under the government of Kerala, is a World first fully integrated Ti02 pigment plant.Eco-friendly & socially committed, KMML is the only integrated Titanium Dioxide facility having mining, mineral separation, synthetic Rutile and pigment-production plants. It Is India's only producer of Rutile grade Titanium dioxide pigment, the factory is located at Sankaramangalam, and have access to one of the world's richest beach. They mine out minerals from the beach and transform it into 'white magic' (Ti02 pigment) which adds gloss to paper, paint, printing Ink etc. At present KMML produces seven different grades of Titanium dioxide pigment to meet the specific needs of the user industries like paint, printing Ink. Plastics, textiles, ceramic, paper industry, and pharmaceutical etc. Their factories are branched under the name 'KEMOX'. Now a day KMML exports its product to more 53 countries. The KMML is one of the three factories in the state which uses these minerals as raw materials. The other two factories are-Travancore Titanium Products Limited and The Indian Rare Earth Limited. The KMML is located on the side of NH-47 very near to sea at Shankaramangalam near Chavara. Now KMML is engaged mining and separating the mineral sands into various constituents Illmenite, Rutile,Leucoxene,Silimanite, Zircon and Monazite. The first three minerals are used for the manufacturing Titanium dioxide and Titanium sponge metal. Zircon is used for making Zirconium oxide, Zirconium hydroxide and

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Zirconiumoxychloride. Zirconium metal has important application in nuclear technology. Silimanite is used for making silicon. Aluminium alloy and monazite is the new material for the rare earth Industry. With continued growth and demand in the economy and industry, the products of KMML are being lapped up by the eager market. This has in turn set the wheels turning for KMMLs expansion. KMML has always been responsive to social and environmental causes. Some of the initiatives taken by KMML have made a significant change to the area and its people.

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INDUSTRY PROFILE
Industries play a significant role in almost every economy but India context it is an important as oxygen for breathing. Industrial development has been accorded great importance in Indian planning. On account of industrial development there is increase in production, employment and national income. In is the second largest growing economy in the world. This is equally applicable to the Titanium Dioxide industry. Titanium Dioxide pigment is authority white powder with high capacity, Brilliant whiteness, excellent covering power, and resistance to colour change. These opportunities have made it authority valuable pigment for authority broad range of applications in the paint, plastic goods, inks and paper. The pigment is manufactured by processing naturally occurring Titanium containing Rutile or Illuminate minerals. Rutile is an impure form or Titanium Dioxide, where as illuminate contains titanium combined with iron as authority compound oxide. Though common throughout the world, they are most readily exploited in Australia, USA, India and South Africa. Titanium bearing minerals found in the coastal sands of the western Kerala coast and in the eastern region on Tamil Nadu and Orissa. The minerals sands on the 22km belt in southern Kerala is said to be one of the deposit. India today possesses the richest technology for the manufacture of Titanium Dioxide through the sulphate and chloride route.

The two public sector manufactures, TTPL (Titanium tetra chloride Ltd) and KMML have substantial capacity addition programs. The capacity of TTPL is expected to touch 30000TPA by 2007 and that of KMML is expected to touch 100000 TPA by 2008, apparently, with the above capacities, both TTPL and KMML will produce Tio2 beyond the requirement of the country. Keeping this in mind, both these units have started tapping the global market. Currently there four unit in India engaged in the manufacturing of Tio2 pigment (Rutile &Anatase) with a total combined capacity of 44560 metric tons per annum. These units are: 1)Kerala minerals and Metals Ltd Chavara, Kollam. 2) Travancore Titanium products Ltd, Trivandrum. 3) Kilburn chemical Ltd, Chennai. 4) Kolmark chemicals Ltd, Kolkata.

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The Titanium Dioxide industry is growing worldwide. The Indian reserves of Illuminate and Rutile is expected to be around 6 corers tones. Beach reserve is also seen in Rathnagiri (Mahi), Gunjan (Orissa) and Srikakolam (AP).The reserve in Kerala and Tamilnadu is around 25 million tones, there are about 20 million tones reserves in Orissa. This information through right 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 ink etc. The arrival of ne we manufactures will be more in the near future. This will ultimately results in tight competition. The demand of TiO2 highly depended on the finished products likes plastic,paint,rubber,paper,printing ink, etc. The demand for the high quality Titanium Dioxide will increase the profitability of the business. KMML enjoys the monopolist position in the titanium dioxide pigment manufacturer in India. The Titanium Dioxide Rutile grade is produced only by KMML in India. KMML has to face completion from world TiO2 producers due to liberalization and globalization. It faces stiff competition with foreign companies like: DUPONT(USA), MILLANIUM(Germany), ISHIARA(Japan), TIOFIN(Netherland), KEMEGA(Finland), MONITOX(USA), KERSEMEGREE(USA). A Global increase in mining capacity is currently underway the numerous new projects around the world. These will be replacing in part dividing reserve from existing producers. Current demand is increasing but may not be sufficient to support the projected product from all the new projects. The major mineral sand deposit has intensified since the mid 1980s due to increasing use and demand for heavy minerals. The major countries where the deposits are Australia, Canada, India ,Kenya, Mozambique, and South Africa. India has over 7000 km coastal line and has huge reserve of minerals in the beach sand. India has large reserve beach and heavy minerals in the coastal stretches around the country specifically in South West Coast of Kerala and Maharashtra. Beach sand contains the important heavy minerals such as Ilmenite, Rutile, Leucoxene, Zircon, Monazite and Sillimanite. India has wealth of titanium minerals with very low ratio resource to utilization. A titanium dioxide industry is essential to ensure optimum utilization of these resources as well as

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to develop a vibrant industry in the field of this strategic mineral. Although some technology base is available in the country for both sulphate and chloride process of titanium dioxide pigment manufacture additional imports know how and technology are considered essential to update the existing sulphate and chloride technologies in the country . The Indian raw materials may be upgraded to synthetic, rutile or titanium slag before exported to fetch better returns. Presently synthetic rutile is being manufactured in the country by Indian Rare Earth Ltd, KMML and three other private companies. However there is no project to manufacture Titanium slag which can be used for sulphate process, chloride process and also for manufacture for Titanium sponge. This gap needs to be bridged at the earliest. The advantages under the environment are the ready availability of good quality, feed stock, low labour cost and stringent pollution laws. The disadvantages are lack of technology, high power cost and uncertain power availability. The most important reserves are seen along the coast of Tamilnadu beach. Reserves are also in Ratangiri (Maharashtra), Gunjan (Orissa), and Sreekakulam (Andhrapradesh). The reserve in Kerala and Tamilnadu is about 20 million tones. Currently there are four units in India engaged in the manufacturing of the Titanium dioxide pigment with a combined capacity of 44,560 metric tons annum. At present in Kerala Travancore Titanium products and KMML are the only two manufactures of who produce Titanium dioxide pigment. Indian Rare Earth Ltd (IRE) a government of Indian undertaking has mineral separation units in chavara which separates minerals from beach sands. IRE also operates two mineral separation units which are located in Manavalakurichi in Tamilnadu and Challarpue in Orissa. The Travancore, Titanium products were started by his highness ChithiraTribunal in 1946 and Titanium dioxide and using the sulphate process technology later the KMML, which was situated in Chavara existence and started producing Titanium dioxide with the help oh HCL process technology (Chloride technology). 2.6 MARKET SHARE In world market, USA has been in the vanguard of development of titanium dioxide industry. In India, KMML enjoys monopoly in the production of Rutile grade TiO2 pigment. In world, KMML enjoys 40% market share.

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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 illuminate Rutile Zircon etc. Kerala minerals and metals Ltd is a pioneer industry in the titanium dioxide pigment in India. Its product has worldwide recognition and it is one of the leading revenue earning public sector enterprise under government of Kerala .It has nearly 2000 workers. It is the first state level public sector enterprise in India to achieve Export House Status from J.D.J of foreign trade in the year 2003. It is India's first and only manufacturer of Rutile grade Titanium Dioxide Pigments by Chloride route. The KMML products are marketed under the brand name 'KEMOX'. KEMOX RC 822 is a pigment grade from KMML Is a multiple application pigment, which has great demand in the world market. KMML also produce six more grades at Titanium Dioxide Pigments namely RC 800, RC 800 PG, RC 802, RC 804, RC 808 and RC 813. Their product range also includes Illuminate, TiCI4, Rutile, Leucoxene, and Silimanite,Monazites, zircon and Iron oxide bricks. KMML enjoys the monopolist position in the titanium dioxide pigment manufacturer in India. Though it controls half the Indian Ti02 pigment market. Kerala minerals and metals Ltd is a pioneer industry in the titanium dioxide pigment in India. Its product has worldwide recognition and it is one of the leading revenue earning public sector enterprise under government of Kerala. It is the first state level public sector enterprise in India to achieve Export House Status from J.D.J of foreign trade in the year 2003. KMML, a fully owned Kerala Govt. Enterprise is the worlds first fully integrated Titanium Dioxide plant. It is India's first and only manufacturer of Rutile grade Titanium Dioxide Pigments by Chloride route. The KMML products are marketed under the brand name 'KEMOX'. KEMOX RC 822, a pigment grade from KMML is a multiple application pigment, which has great demand in the world market. KMML also produce six more grades at Titanium Dioxide Pigments namely RC 800, RC 800 PG, RC 802, RC 804, RC 808 and RC 813. Their product range also includes ilmenite.TiCI4, Rutile, Leucoxene, Silliminite, Monazite,zircon.KMMLs Titanium pigments are reputed for their high degree of gloss, tint
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retention capacities and ease of dispersion. These qualities give KMML affordable identity in this industry. They have already proved their capacity to produce internationally adaptable quality product at competitive prices. Industries play a significant role in almost every economy but India context it is an important as oxygen for breathing. Industrial development has been accorded great importance in Indian planning. On account of industrial development there is increase in production, employment and national income. In is the second largest growing economy in the world. This is equally applicable to the Titanium Dioxide industry. Titanium Dioxide pigment is authority white powder with high capacity, Brilliant whiteness, excellent covering power, and resistance to colour change. These opportunities have made it authority valuable pigment for authority broad range of applications in the paint, plastic goods, inks and paper. The pigment is manufactured by processing naturally occurring Titanium containing Rutile or Illuminate minerals. Rutile is an impure form or Titanium Dioxide, where as illuminate contains titanium combined with iron as authority compound oxide. Though common throughout the world, they are most readily exploited in Australia, USA, India and South Africa. Titanium bearing minerals found in the coastal sands of the western Kerala coast and in the eastern region on Tamil Nadu and Orissa. The minerals sands on the 22km belt in southern Kerala is said to be one of the deposit. India today possesses the richest technology for the manufacture of Titanium Dioxide through the sulphate and chloride route.

The two public sector manufactures, TTPL (Titanium tetra chloride Ltd) and KMML have substantial capacity addition programs. The capacity of TTPL is expected to touch 30000TPA by 2007 and that of KMML is expected to touch 100000 TPA by 2008, apparently, with the above capacities, both TTPL and KMML will produce Tio2 beyond the requirement of the country. Keeping this in mind, both these units have started tapping the global market. The Titanium Dioxide industry is growing worldwide. The Indian reserves of Illuminate and Rutile is expected to be around 6 corers tones. Beach reserve is also seen in Rathnagiri (Mahi), Gunjan (Orissa) and Srikakolam (AP).The reserve in Kerala and Tamilnadu is around 25 million tones, there are about 20 million tones reserves in Orissa. This information through right 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 ink etc. The arrival of ne we manufactures will be more in the near future. This will ultimately results in tight competition. The demand of TiO2 highly depended on the finished products likes plastic,paint
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,rubber, paper, printing ink, etc. The demand for the high quality Titanium Dioxide will increase the profitability of the business. At present in Kerala Travancore Titanium products and KMML are the only two manufactures of who produce Titanium dioxide pigment. Indian Rare Earth Ltd (IRE) a government of Indian undertaking has mineral separation units in chavara which separates minerals from beach sands. IRE also operates two mineral separation units which are located in Manavalakurichi in Tamilnadu and Challarpue in Orissa. The Travancore, Titanium products were started by his highness ChithiraTribunal in 1946 and Titanium dioxide and using the sulphate process technology later the KMML.The company is located at Sankaramaangalam near Chavara, Kollam a coastal town 85km North of Thiruvananthapuram. KMML is situated on the side of NH-47 to about 285 acres in area.

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PRODUCT PROFILE
The present chapter is an attempt to familiarise with the products of KMML.KMML offers Rutile grade Ti02 as the main product also offers Zircon, Leucoxene, titanium tetra chloride as the secondary products. Titanium Tetra Chloride is extensively used in tmanufacture of Titanium dioxide pigment, Titanium sponge or metal. The product profile of the KMML and their applications are shown in the Table below: Table: 4. 1 Particulars of products of KMML

At present KMML produces six grades of titanium dioxide pigment under the brand name of KEMOX. The different grades of Ti02 pigments and their properties and uses are given in:

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Table: 4.2Particulars of products, properties and uses of KMML GRADE MAIN PROPERTIES USES

KEMOX RC Excellent tinting strength good Interior glass and semi-gloss paints. 800 gloss. good dispensability, high Interior decorative and industrials brightness paints, wood finishes, can coating, and most printing Ink applications KEMOX RC802 Excellent balance of optical" High properties and durability. performance General multipurpose architectural

products.

interior and exterior finishes, exterior industrial finishes, marine, coil, and power coatings, all classes of water borne and solvent based coatings. KEMOX RC808 Good dispersibility. excellent Used for coating with glass to which dispersibility prevents the spreading of water. This helps the automobile industry to design the vehicle without using any wipers. KEMOX RC813 Excellent haze free gloss and Matt decorative and emulsion paints, gloss retention, high tinting matt printing inks strength, high dispersibility KEMOX RC822 High hiding power in high PVC Exterior applications and powder formulations, good coatings, water and solvent based decorative and industrial

dispersibility, good durability paints and high brightness. KEMOX RC800 PG

coatings.

Finer particle size, blue under Plastic, rubber and floor tiles stone and good dispersibility

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ORGANISATION STRUCTURE

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DEPARTMENTAL PROFILE
Kerala Minerals And Metal Ltd, having a number of functional departments which are functioning as an integrated unit for achieving the overall organizational objectives.KMML has two units via, TiO2 pigment unit and Minerals Separation Unit. The organisation structure consists of a Managing Director, assisted by two General Managers. There are Joint General Managers, Deputy GMs, Asst.GMs and managers in various departments in the company The plant functions round the clock and the production process is arranged in four shifts, A, B and C and General shift, each with 8 hours duration. The administration wing functions in general shift from 9 am to 5 pm. The company has also provided a subsidized canteen in the premises as per the Factories Act. The other activities of the plant like the catalytic process to the production process are also divided into many departments. 5.1FUNCTIONAL DEPARTMENTS IN KMML ARE: Production Department Marketing Department Finance Department Materials Department Personnel And Administration Department Research & development department Fire And Safety Department Data processing department Technical department Project department Maintenance department

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5.1.1 PRODUCTION DEPARTMENT


The production department plays an important role in KMML. It is equipped with latest state of art technologies. It strives to achieve a high standard by achieving technical excellence in every phase of production. The plant works 24 hrs a day with three shifts. Occasionally the plant is closed for maintenance work. The production department comprises of two divisions, namely Production planning division and production division. 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 contains 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. 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 used in everyday life. Paint material, facial creams, tablets, newsprint, rubber products, cosmetics and printing inks all contain Tio2

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The Structure of production department:

DGM(HOD) (General shift)

AGM(Utilities) (General shift)

AGM(IBP/ARP) (General shift)

AGM(Pigment Production Plant) (General shift)

Plant Manager(General shift)

Plant Manager (General Shift)

Plant Manager(General shift)

Dy. Plant Manager(General shift)

Dy. Plant Manager(General shift)

Dy. Plant Manager(General Shift)

Process Engineer(General shift)

Process Engineer(General shift)

Process Engineer(General shift)

Process Engineer(Shift)

Process Engineer(Shift)

Process Engineer(shift)

Asst. Process Engineer(Shift)

Asst. Process Engineer(shift)

Asst. Process Engineer(Shift)

Operators (in each shift) A Grade - 1No., B Grade - 3Nos, C Grade - Nil, Jr. Operators - 2Nos Workers( in each shift) Total-6 (Filter-1, Larox Filter-1, Bagging- 2, Microniser-1, Sample-1

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5.1.2

PRODUCTION PLANNING DIVISION AGM planning is the head of this division. He along with his team performs the

following activities:Planning, Implementing, Monitoring, Giving feedback. Planning Based on the targets set by the BOD's the planning division fixes each day's production target. The fixing of per day production target is based on the past experience together with capacity Improvements and the workers performance standards. In this plan sufficient time is allotted for carrying out maintenance work. Implementation Once the planning work is over, the planning division hand over the per day target plan to the production division for its implementation. Sufficient explanations regarding the plant will be also provided along with the plant. Even after this if the production division has any objection with regards to the plans; they will convey a meeting with top officials from the production department. In that meeting they try to sort out the objections raided by the concerned persons. Monitoring Once the plan is implemented the planning division keeps a close watch on whether the production rate is inline with the target rate. This is done by collecting data on each day production rate and then it is compared with the target rate. Feedback Once the comparison is made a feedback is given to the Bedsas well as to the production department. More over if there is a sudden break down of the plant, which leads to several days or if the production rate is not in line with the target rate for several days the planning division makes a quick assessment of the situation and if necessary the targets are revised. The matter will be immediately disclosed to the Beds.

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5.1.3 PRODUCTION DIVISION All the activities concerning the production department are under the control of the Deputy General Manager (Production). Under him there are two AGMs, who are In-charge of IBP, ARP and Units 200,300.400 respectively. Below there is a manager. Deputy Manager, plant Engineers, Technicians workers, and Peons. KMML has two units for producing TiO2 pigment they are: 1. Mineral Separation Unit (MSU) 2. Ti02 Pigment Unit Mineral Separation Unit (MSU): The black sand collected from beach (ranging from Chavara to Kayamkulam) contains about 5060% of illmenite, 35% sand (silica), and the remaining 5%will constitute of monazite, leucoxene, rutile etc. The mineral separation plant of KMML was originally established in the year 1932 and several machines were added in the due course of time. This plant is situated by the side of their open mines does the separation of minerals from beach sands. The raw sand is first concentrated in spiral separators to enrich the heavy mineral content. The wet concentrate is then dried in fluidized bed dyer and then feed to the dry separation plant. Magnetic separators and HT separators separate different minerals. These minerals are separated from the sand collected by dry separation process in the mineral separation unit. From the raw Ilmenite Is transferred to KMML pigment unit. Leucoxene, Zircon, Monazite. Rutiles are sold out, and the remaining I.e. raw sand is dumped into the place from where the black sands are extracted. Mineral Separation Plant (MSunit) and Tio2 pigment plant (TP unit) is two independent production units in KMML. The TP unit is divided in to three plants:Ilmenite Beneficiation Plant, Acid Regeneration Plant, and Pigment Production Plant.

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Tio2 pigment unit: This plant produce Ti02 pigment as the main product and also produce TiCI4 and synthetic rutile, as the intermediate product. The raw Ilmenite separated from the black sand will contain 60% of Ti02 content. But this plant will works with only rutile route. This conversion of raw Ilmenite to rutile route and making it into Ti02 pigment is the work carried over in this department. 5.1.4 PRODUCTION PROCESS The production process of titanium dioxide In KMML is as follows: 1. Ilmenite Beneficiation Plant: The raw Ilmenite contains about 60% TI02 and 40% ferric oxide, which is an impurity .For pigment production this impurity has to be removed. But ferric oxide as such does not dissolve in acids .So the raw Ilmenite along with Petroleum coke is heated at a temperature of 8500 c for about 3hours. This will reduce ferric oxide to ferrous oxide .Now the reduced Ilmenite is cooled and it Is sent to the digester where it is leached with dilute HCL which convert ferric oxide to ferrous chloride .The spent liquor which is ferrous chloride is sent to storage tanks .The leached Ilmenite Is washed and filtered and then calcimined to get beneficiated Ilmenite .The beneficiated Ilmenite now contains about 90 to 92% 1102 content. 2. Acid Regeneration Plan: The Spent leach liquor is transferred to the Acid Regeneration Plant where it Is heated with burning oil in a furnace .The spent liquor decomposes to form the metallic oxide and iron oxide and vapors of HCI acid .The HCL acid vapor is then cooled and added little concentrated HCL acid for getting dilute HCL add with concentration of about 18-20%. Now this acid perfectly suit the requirements In the IB Plant and it recycled back to IB Plant .The remaining effluent I.e. the Iron oxide is then converted Into bricks which Is used as building materials. 3. Chlorination Unit (200): Beneficiated Ilmenite from 18 plants is chlorinated to produce Titanium tetra chloride (TiCM). Chlorine reads Ti02 and other metallic oxide Impurities In the beneficiated Ilmenite the presence of Petroleum coke at a temperature of 1000c In a fluidized bed chlorinator to produce chlorides of Ti02 end other Impurity metals. The chlorides of Impurity metals are removed from

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TICM by direct cooling with TICM and cyclonic separation of sold impurities .The TiCl4 liquid Is then stored .It is subjected to distillation process for further purification so as to obtain pure TiCl. In the liquid fromwhich is stored in the storage vessel. 4. Oxidation Plant (300): Now the liquid TiCl is preheated in tickle preheated where it is vaporized and oxidized with the atmospheric oxygen to produce TiO2 at a temperature of about?00c. Then the TiO2 is formed into slurry with water and is stored in the storage tanks for surface treatment in the finishing plant The chlorine liberated due to this is recycled back to the chlorination plant. But the problem in this unit that, both the chlorination plant and oxidation plant has to work simultaneously. This is because they don't have facility to store the chlorine liberated in the oxidation plant. 5. Surface Treatment and Pigment Finishing Plant (400/500): The TiO2 slurry stored in the tanks are passed to treatment and finishing plant where it is subjected to sand milling, followed by classification and surface treatment .In the treatment section TiO2 pigment is surface treated with various chemicals like Sodium Aluminates and sodium silicate .The slurry is then filtered and washed to remove salts. The Ti02 left after will be in the shape of a cake and is feed back to the dryer, and then feeded to the pigment agglomerated to achieve the optimum particle size of 0.02mlcrons .Now is ready for sale and is packed in paper bags of 25kg capacity. There exist two more units, which are designed for supporting the production process and also a brick unit for producing Iron oxide bricks. The three units are as follows: 6. Air Separation Unit: A company named M/sLair Linds; France designed the equipment needed for this unit and supplied M/s BHPY Ltd Vishakapattanam. This unit produces Oxygen gas. Which are needed for the company, are provided from this unit.

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7. Utilities Unit: This unit consists steam compressed air and water .The steam supplied by two boiler of capacity 331onnes /hr each .The compressed air for the plant are supplied from here at pressure of 5k/hr. This unit is charge of four tube wells and it Is their responsibility to supply water for the plant. 8. Brick Unit: This unit Is designed to solve the waste disposal of iron oxide slurry which comes out from the Acid Regeneration unit .Her the harmful effluent Iron oxide Is converted into as user friendly Iron oxide bricks A\ present the company is using this product for its domestic purpose as construction of walls, floors etc

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5.2 MARKETING DEPARTMENT


5.2.1 FUNCTIONS OF MARKETING DEPARTMENT The marketing functions undertaking by the marketing department of the KMML can be broadly classified into three, ViaFunctions of exchanging,Functions of physical

supply,marketing facilitating function. 1. Function of Exchange: The functions of exchange carried out by the marketing department are

subdivided into three Via,Buying and Assembling, Packaging,Selling. Buying and Assembling: The raw Ilmenite necessary for production are either collected from minerals separation plant, or brought from MSU. The raw material like chemicals petroleum coke, burning oil etc are brought either from the venders the list or selected Venders. The marketing department carries out the selection of buyer and making arrangement tor procuring the items. The marketing department also arranges the machines required in the plants. Packaging: The marketing department gives special instructions regarding the packing of theTi02 pigments. They receive instructions from the customers and then this is passed on to the packing section. Today all pigment grades except RC813 is packed in 25kgs net weight air laminated multi paper bags. Selling: It is one of the important functions carried out by this department .They provide facilities for the customer to make direct purchase from the company. More they appoints stockiest for distributing the pigments to the small customers. At present they have appointed 28 stockiest all over India.

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2. Functions of Physical Supply: The marketing department's functions related to the t of physical supply can be explained as follows: Dispatching:

Once the order from the consumers as well as from the stockiest were the marketing department arranges the execution of orders by way of preparing dispatch. The mode of payment for purchase made by the consumer has to be advance payments In the form of demand drafts or telegraphic transfers which are payable at any schedule banks in Kollam. 3. Marketing Facilitating Function: The marketing department also performs the facilitating functions like Financing: For helping the company to maintain a proper working capital management, the marketing department Insists on advance payment from the customer. This help the company to reduce the debt collection purled of the considerably. Risk bearing:

It takes all top possible to avoid the chance of good, being returned by the, customer and also take special care for protecting the goods from being damage on storing in the go down

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5.2.2 STRUCTURE OF MARKETING DEPARTMENT

GM(Marketi ng)
DGM

MANAGER

DEPUTY MANAGER

MARKETING OFFICER

STAFF

Deputy General Manager (Commercial) is the supreme authority as far as marketing department is concerned .The Marketing Manager is responsible for the entire activities and decision making. He along with his team strives to achieve a commendable position in the TiO2 pigment industry in the domestic market as well as in the international market. Today KMML has a monopolistic position In the Ti02 pigment industry in India. Because this reason, it is one of the leading profit earning public sector enterprise under Government of Kerala. In KMML there is no sale department and there fore the marketing department also carries out this function. Any product movement in the market will depends upon the marketing efforts undertaken by the company .It is said that a good marketer can even sell the worst product available in the market, where as a bad marketer can make a good product not move in the market .So keeping this fact in the minds. KMML incorporated a good marketing department, with highly talented professional running it.

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5.2.3 MARKETING MIX OF THE KMML The Marketing Mix adopted in the KMML is as follows: PRODUCT: KMML offers Rutile grade TI02 as the main product also offers Zircon, Leucoxene, titanium tetra chloride as the secondary products.The product profile of the KMML and their applications are shown in chapter v. PRICE:

In India; KMML enjoys the position of price leader status. Since, the excise duty on imported item Ti02 pigment is 20%. KMML earns sufficient gains than foreign competitors. More over in foreign markets it tries to follow competitive pricing strategies to counter the competition. The present price structure of Ti02 pigment by KMML in domestic market are: Table 5.2 Price structure of different grades of TiO2 pigment PARTICULARS RC800 Basic Price 1,00,000 16,000 RC800 PG 1,00,000 16,000 400 116,400 1,1641 RC802 1,00,000 16,000 400 116,400 1,1641 RC804 1,00,000 16,000 400 116,400 1,1641 RC808 1,00,000 16,000 400 116,400 1,1641 RC813 1,00,000 16,000 400 116,400 1,1641 RC822 1,00,000 16,000 400 116,400 1,1641

ADD: Duty 400 16%Cess 2.5% 116,400 Less: Trade 1,1641 discount 1% 115,236 ADD CST ADD 20% CST 4,609 922 120,767 Source: Annual Reports of KMML

115,236 4,609 922 120,767

115,236 4,609 922 120,767

115,236 4,609 922 120,767

115,236 4,609 922 120,767

115,236 4,609 922 120,767

115,236 4,609 922 120,767

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Note: Selling price of the grade = (Basic Price) + Basic price x 16% Excise Duty + 2-5%cess -1% trade discount + 4% central sales tax + (20% of CST amount). PROMOTION: Since KMML Is the sole producer of rutile grade Titanium dioxide In India, there Is no need for them for large promotional activities. Its brand KEMOX has a wide acceptance and they keenly focus on retaining their customers by satisfying their needs through product Innovation and belter service. More over they annually conduct stockiest meet for maintaining good relation with them and also the company take this opportunities for introducing new grades of Titanium pigment 1% trade discounts are given for attracting the new customers. KMML make advertisements in trade journals, and industrial new magazines published by thePaint Manufactures association and ink producers association etc. Advertisements give by the stockiest about its brands KEMOX, is also a promotion activities for them. KMML is also associated with 'Paint India ' the leading publication of the paint industry and Mineral Market Report which provides valuable information of Ti02 at national and international level. The marketing set a target of achieving a record 50% - - of exports of their total production .So in order to boost the foreign trade the marketing department has recently under taken the following activities: Web site redesign releasing the publicity materials like brochure, interactive CD etc, for having an effective customer interface. Releasing advertisements through international Journals and publications. participating in oversees exhibition / production shows. ADVERTISEMENT: Advertisements are given in trade journals industrial news, magazines etc. advertisements are also given in news papers while appointing stockiest. KMML has its own website www.kmml.com which is another important medium of advertisement. KMML subscribes paint India, the leading publication of paint industry and also mineral market reporters. Which

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provide valuable information about Tio2 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 that management phases. A companys channel decision directly effects every other marketing decision. The firms sales force and advertising decision depends on how much persuasion, training and motivation the dealer need. DISTRIBUTION SYSTEM: In KMML distribution is divided in to 2 major categories:1. 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 price. All the grades of Tio2 pigments would produce in KMML come under the category of industrial goods. Tio2 is mainly used in paint industry, textile industry, printing ink industry etc.The total customers customers can be divided in to 3 types;-Major customers, Stockiest, Other customers. 5.2.4 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 invoices to financial department.

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5.2.5 EXPORT MARKET IN KMML Even though KMML faces stiff competition from multinational giants, KMML receives a number of export order through email, 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, Srilanka, Turkey, Dubai, China, UK and Philippine. 5.2.6 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 provide valuable information about Tio2 at national and international level. KMML uses the services reduced 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. 5.2.7 HANDLING CUSTOMER COMPLIANTS These complaints received from the customers are registered by KMML and acknowledgement sends to customers. The details of the complaints are entered in the customer compliant register. 5.2.8 MARKET RESEARCH FUNCTIONS OF KMML Main objectives are given below: 1. To find out the general impression of KMML products in the Titanium Dioxide marketing of India. 2. To ascertain whether demand exists in the Indian market.

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5.3 FINANCE DEPARTMENT


Finance is the lifeblood of any organization. It deals with both the acquisition of as well as allocation of funds. Hence finance department assumes a great role in this organization. A finance department in an organization is responsible for maintaining fair and just accounting, working capital management, long term funding decision making, costing etc. The Structure in their Finance Department is given in Fig 5.3 The Structure of Finance Department

Managing Director

General Manager (Finance)

Manager (Internal Audit)

Deputy Manager

Internal Audit Assistant

Account Officer Cash

Account Officer Salary

Account Officer Tax

Account Officer Budget

Account Officer Direct Bills

Account Officer & Other Bills & Sales Tax

Assistant

Assistant

Assistant

Assistant

Assistant

Assistant

Accountant

Accountant

Accountant

Accountant

Accountant

Accountant

Fig: 5.3

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5.3.1.THE MAIN FUNCTIONS OF THE FINANCE DEPARTMENT IN KMML ARE:-

To maintain clear and perfect accounting system . Preparation of Profit & Loss accounts, Balance statement, cash flowstatement, fund flow statement etc. Working Capital Management. Carrying activities pertaining to the long term and short-term requirement like closing

purchase, maintaining the accounts of the contractors, Income tax deductions, salary and disbursement etc. Dealing with the financial institutions with matters regarding to salary disbursement, credit arrangements, collecting payments from the customers etc. The Finance Department Consists Of Two Sections, via An Internal Auditing Section (or carrying out auditing functions internally and also for maintaining internal audited records. An Account Section for Preparing P&L Accounts, Balance Sheet etc.

5.3.2 CAPITAL SRUCTURE KMML has an authorized capital of 3500 lakhs. The issued, subscribed and paid up capital comes to 3093.27 lakhs. Equity is of value rs 100 each. Today KMML is a Zero debt company making profit continuously. Dividends Issued The Directors considered the payment of dividend to the Govt being the sole shareholders. The BOD has recommended for declaring of 10% on the paid up capital of the company.

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The Accounting Policy Adopted By the Finance Department in KMML 1. Convention Method: The financial statement are prepared under the historical cost convention method in accordance with the applicable accounting statement that are relevant to the rates and methods prescribed in schedule 14 of the Companies Act 1956. 2. Fixed Asset: Fixed assets are at the cost of acquisition and additional if any, less accumulated depression, is provided at rates and methods prescribed in the schedule 15 of the Companies Act of 1956. The straight method is used for the calculating the deprecation of plant & machinery and written down value method is for calculating the deprecation of other assets of the company. 3. Excise Duty: Excise duty on goods manufactured is accounted for as when goods are manufactured and accordingly provisions are made in respect of duty on goods manufactured but dispatch note is not included in the valuation of stocks. Accounts are maintained in accrual basis except in the following, which are accounted on cash basis. Interest on income tax Dividend from shares

4. Terminal Benefits: In KMML the provision for gratuity and leave are made on the basis of actual valuation. 5. Inventory Valuation: Finished goods are valued at cost or net realization value hichever is less cost. For this purpose is arrived at on the basis of FIFO method in Titanium Pigment Units, where minerals separation units, cost of minerals is arrived by LIFO method. Stock of raw materials, chemicals, fuel stores and spares are valued at Weighted Cost Method.

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THE FUNCTIONS CARRIED OUT BY THE 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, Balance Sheet, and Profit & Loss Account etc are also the activities of Finance 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 import and exports are also the functions of the Financial Department. The functions are:1. Recording and analyzing of purchase: The accounts section first analyzes accounts related to purchases made by the purchase department. They check whether the Invoices prepared by the purchase department are In line with the stated norms of the company .If they have any doubt about it. Then It is send back to the purchase department for further reference .If it is accepted by them then accounting entries are in the books of accounts of the company. Normally accounting entries are made on a daily basis. 2. Salary section and pay division: The finance department is entrusted to do following activities: Preparation and disbursement of salary to all workers. Maintaining a Salary Register for noting down the changes in the salary. Keeping a separate account for deduction made in salary such as P. Insurance premium advances Income tax etc. Making arrangements for salary payment. Providing ATM facilities to the employees who required it.

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3. Sales and revenue: The finance department is entitled to calculate and make arrangements for paying sales tax and excise duty to the respective state or central government. Present corporate tax is about 35% of the net profit and it Is paid on quarterly basis. They make provisions for the quarterly basis tax by allocating the required funds when where It Is needed. 4. Cash and bank transaction: The finance department has to keep a record of following: Day to day cash transactions. Receive and make payments for sales and purchase.

They are allowed to make payments through cash If the purchasing amount Is less or equal to Rs20, 000/- and for those payments which are above Rs20. 000)- are made through DD (demand draft) or TT (Telegraphic Transfer). Major Banks of the company are ICICI , SBI, SBT, Standard Chartered Bank, Central Bank Of India. 5. Costing: The finance department is entrusted to prepare the cost sheets. Based on the cost sheets, they calculate the cost of producing one tone of Titanium dioxide pigment. 6. Auditing: Auditors are appointed by the government for a period of one year. For maintaining true and fair accounts, finance department does internal auditing

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5.4 PERSONNEL AND ADMIN1STRATIVE DEPARTMENT


Human Resource is the one of most valuable resource as for as a company isconcerned. An organization is a human grouping in which work is done for the accomplishment of some specific goals or mission. The management of man is very important and challenging Job, because it is not of managing men but of administering a social system. The proper utilization of this resource will indicate whether a company is successful or not. But managing this resource is complex one especially in a state like Kerala whore unionism is strongly imparted m the minds of the workers. But the story of the KMML lays in the personnel and administrative departments ability to property the human resources. This department plays a prominent role in the day-today affairs of the Company. The Structure in their Personnel and Administrative Department is given in Figure: 5.4 The Structure of Personnel and Administrative Department

MD

ED

JGM(P&A)

HOD-DGM(P&A)

M(P&A)

DM(P&A)

DM(LEGAL )

PO

SO

AO(CANTE EN)

Medical Superinte ndent

M(welfare )

APO

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5.4.1. THE FUNCTIONS OF P&A DEPARTMENT Man power planning Recruitment and selection Grievance Handling Procedure Workmen Category Labour Welfare Activity Industrial Relationship Disciplinary Proceedings

MAN POWER PLANNING: It is one of the important activities carried by the PSA department. Poor manpower planning can result in poor performance. The primary objective is to ensure the availability of the required skill and avoid/ minimize redundancies. To achieve this objective, the management forecast man power needs for the Job requirement and explores various sources of manpower supply. Earlier the man requirement planning In KMML was established based on the work carried out by the Engineering Consultancy (India) Ltd. The company has now decided to preview manpower requirements and entrusted Kerala State Productivity Council to undertake the work-study and job evaluation so as to enable the company to arrive the required manpower In future. In absence of a MPP, company may end up with shortage of manpower. In case if there Is an urgent need for employees to meet the target. They make special arrange in advance with the help of this planning. RECRUITMENT AND SELECTION: For recruitment KMML adopts different methods. KMML gives advertisements through Malayalam and English newspaper published in Kerala and other states of south India. INDUCTION: The recruitment will be done by the P & A department as per delegation of power issued by the company from time to time.

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MODE OF RECRUITMENT Recruitment is done By PSC and Direct Recruitment, Or Posts within the purview of the KPSC Recruitment Procedure:

The employment exchange compulsory notification 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 exchange. Any failure to notify such vacancy is an offence punishable under this Act. There for the chief executives of public establishments shall notify vacancies to comply with Act.

Selection to all other posts outside the purview of public service commission shall be made from among candidates sponsored by employment exchange. In these cases , filling up of vacancies by generating applications through advertisement in news paper should be attempted only after obtaining non availability certificates fro employment exchange

Recruitment to vacancies should be made committees set up by Board of Directors with not less than three members and at least one of these being government representative.

In respect of direct recruitment the principles of reservation are applicable to government appointments should be adhered to the principles of communal rotation as laid down 15 to 17 of Kerala subordinate service Rules part 2 shall be followed

The practices of hiring persons on daily wages to man posts, which can be called through employment exchange, shall be discounted. All existing vacancies should be taken to fill them. All amounts spend on hiring daily wage employees shall be treated as irregular expenditure which could be reserved from the appointing authorities.

The instructions already issued by the Government to these extent, they are contrary to the forgoing procedures will be cancelled from the date of issue of the circular.

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SOURCES OF RECRUITMENT Direct Recruitment Kerala public service commission Technical Employment Exchange Through Advertisement In Newspapers Notification In The Company Notice Board District Employment Exchange Related Instruction Centres Companys Paid Apprentices Land Acquired People And Evictees Internal Recruitment

SELECTION The screened candidates will be considered for selection. Selection will be done by the Committee constituted by the Board of directors.

Selection through tests/ interview Candidates recommended by screening committee only will be called for test and interview.

KMML adopted various tools and techniques for the recruitment of new workers .One tool is by employing application form to the applicants for getting their detail information. And then calls the eligible candidates among them for interview .For technical post, KMML conducts Practical and written exams is a common pattern followed. For the post of clerks (staff) category the KMML first conducts written exams and based on the performance of the tests, the eligible candidates are selected for the Interview .The final selection will be made based on the performance in the written exam and the Interview .For getting selection the employees has to pass the medical exam. More over the selection are subjected to communal reservation policy of the Government.

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TRAINING AND DEVELOPMENT The training and development activities are taken by personnel department for making their employees at par with the new technology and to increase their productivity I order to mould the employees the P&A department is entrusted to carry out the designing and implementation of training programs .The traing requirements of the employees are designed under the guidelines of the ISO .As per the ISO norms the annual training schedule Is prepared on the basis of the individual training needs identified by the Head of the departments in specific formats collected from all departmental heads on or before march 15 every year, if any departmental head feels that there is an urgent need for training, the matter is forwarded to the administrative officer who makes arrangements for training program. He accepts the training proposal by taking into account of the factors such as:Workers current position, Training they have under gone,New skill that have to be imparted,Qualifications required etc. Types of training given to the employee by P & A are: 1. Internal training: This is given exclusively for the regular employees. This training is designed, developed and conducted with in the company. It is conducted with the assistants of Internal faculty or eternal resource personal. 2. External training: It is designed, developed and conducted outside the company by agents and one or more regular employees are permitted to attend the training with the approval from the MD of the company. Also such training programs are arranged when machine or a new technology is brought from abroad. 3. Apprentice ship training: As per the Provision Of Apprentice Act of 1961 and apprentice Amendment Act of 1973 the company gives training to the graduate, diploma holders and post graduate holders as apprentice, trade apprentice, and vocational apprentice

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PROMOTIONS AND TRANSFER Promotion means movement from, low position to higher position with a better payscale, status and responsibility. Eligibility for promotion requires work excellence experiences and required qualifications. Promotions post in KMML are notified by giving the required educational qualifications and experience for qualifying the promotional post and applications are invited. The concerned authority in the personnel department screens the applications received from the employees. Factors considered for promoting the employees are: Seniority (26 mark),Test or interview (40 marks), Attendance (20 mark),Performance (15 mark). Those employees who secured less than 50% marks in test and Interview are not eligible for promotion. All vacancies In the post, equivalent and below the level of staff in charge in the pigment plant are filled up by promotion subject to the availability of suitable workmen. The workmen are eligible tor promotion on completion of four years of minimum service In a particular grade or post. 50 % of the vacancies in the post of assistant engineer, are filled based on guideline and subjected to the availability of suitable employees. Transfer may give for either motivating or punishing the employees. WAGES AND SALARY FIXATION The personnel and administrative department fixes wages and salary by negotiating with the approved trade union representative. The govt of Kerala pays the wages. The wage rates are revised in every four years. Salaries are given on an hourly, daily, and monthly basis. For those employees who have completed 8 years of service are eligible for salary increments.

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TRADE UNION Thereare two recognized Trade Unions in KMML are; INTUC ( Titanium Complain Employee Congress) CITU ( KMML Titanium Employee Union) Other Trade Unions in KMML are: RETIREMENT The retirement age of an employee in KMML is fixed at 58 years. On retirement date the personnel department is charge of clearing the papers such as gratuity allowance, D.A, etc GRIEVANCE HANDLING PROCEDURE IN KMML A worker who has a grievance shall present it in writing in the permitted from in duplicated to his sectional heads. He should give a personnel hearing to the concerned worker and give his decision in writing with in the 7 days after the receipt of grievance letter, falling to dos so he may present it to department heads in duplicate through section head that have given a decision. If he also fails to resolve the problem of the employee the employee may sent a representation to the grievance committee regarding the redressal of workmen and shall implement with the sign of MD WORKMEN CLASSIFICATION Presently there are around 2000 employees in KMML, the workers in KMML are classified as: Permanent workers, Employees engaged on contract bus, Casual labour, Temporary or seasonal workers,Apprentice. WORKING HOURS Daily working of the company is on shift basis. There are three shifts for plant and general shift for administration. The timing is as follow:A Shift-6 am to 2 pm,B Shift-2 Pm to 10 pm, C Shift-10 Pm to 6 pm, General-9 am to 5 pm. UTUC RSP(B) ( Titanium Complex Employees Union ) STU Muslim League ( KMM Employee Union )

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The employees assigned for shift shall rotate in the 3 shifts on the basis of 2 day shift systemie, 2 A shifts, 2 B shifts and 2 C shifts and thereafter one day weekly off. LABOUR WELFARE ACTIVITIES KMML gives top priority (or the welfare aspects of the employees. Manager welfare in the personal department looks after the welfare affairs of the employees. Some of the welfare measures undertaken by the welfare section as follows: Providing canteen facilities to all employees at cheaper price Subsidized transportation facilities to all employees Recreational facilities like drama club sports club, gymnasium, etc are provided for the mental as well as for the emotional growth of the employees Providing house loans faculties with subsidized interest rate House rent allowance of 10% of the monthly house rent is paid by the company Conveyance allowance will be revised from Rs.250/- to Rs.350/- per month. Death relief funds are given to the concerned family members. Educational allowance for the employees' children Vehicle loan up to Rs 2.5 lakhs for motor car and Rs.45,000 for motor cycle. Milk allowance of Rs.275 per month. Shift allowance per shift for A & B shift will be revised from Rs.20/- to Rs.30/- and for C it will be revised from Rs.40/- to Rs.55/ Washing allowance is revised from Rs.110/- to Rs.150/Educational allowance allowed to two children of employees will be revised as below:

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Table 5.4 Existing rate a. Up to SSLC b. Course for which minimum Qualification is Plus Two c. Course for which minimum Qualification is Degree d. Professional courses 280/500/240/375/140/190/Revised rate 250/325/-

Employees shall be paid a housing loan subsidy to the tune of 50% of the interest payable by them for Housing loan up to Rs.5,00,000 by limiting the eligible interest rate to the minimum rate charged by approved agency.

Attendance bonus Allowance Below 80% 80% to 90% Above 90% Full attendance Nil Rs.300/- per month Rs.500/- per month Two days wages is paid additional

UP GRADATION Under up gradation an employee is assigned in the same destination with an incremental salary pay scale. This is usually given to employees when there is no vacancy for the post to be promoted. The second grade up gradation will be given after the employees are work for 8 years 5.4.2. INDUSTRIAL RELATIONSHIP Almost all the industry one can experience the existence of some effective trade unions which are formed to the purpose of maintaining good relationship between the workers and employer or between workers and workers. 5.4.3 DISCIPLINARY ACTION The personnel department under takes disciplinary actions against those employees who are continuously absent for more than 52 days in a calendar year.

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5.5 RESEARCH AND DEVELOPMENT DEPARTMENT


KMML maintains a fully equipped R&D 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.KMMLs Research and development has achieved following tasks in recent times: 1. Developed new grade RC-802 will excellent balancing properties of glass and weather ability 2. Successfully developed an improved process of oxidation plant 3. Developed know how to convert iron oxide process of oxidation plant 4. Developed grade RC-808 special grade for automotive coating The following works are on progress: 1. Development of Titanium Ox chloride in pilot scale. 2. Pilot scale Development of Nano Titanium Dioxide particles. 3. Recovery of Beneficiated Ilmenite and Calcined Petroleum Coke (CPC) from the cyclone discharge of chlorination plant. 4. Development of TiO2 grade for decorative paper Ilmenite applications in lab scale. 5. Monitoring the quality of water to check the feasibility of outsourcing water from Chambakadavu River. 6. Development of alternative raw material/supplier purification of crude Titanium Tetrachloride using treating oil supplied by HPC instead of IOC.

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5.5.1 AWARDS ACHIEVED BY R&D In 1992 National Award for in-house R&D efforts in Industry for technology absorption under the TASS task program. The Kerala Productivity Council Awards for productivity standards. The development of science and Industrial Research has conferred on KMML the best R&D lab award. 5.5.2 R&D MILE STONES Development of four new grades of Titanium Dioxide pigments The supported compulsion process in the oxidation plant. Develop the technical knowhow to convert Iron oxide effluents to Iron oxide bricks.

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5.6 MATERIALS DEPARTMENT


The Functions Of Material Department Can Be Grouped Into Three: 1. Purchase 2. Storage 3. Inventory control

DEPARTMENT CHART

DGM (Materials)

Manager

Purchase

Stores

Purchase Officer (Import)

Purchase Officer (Indigenous)

Stores Officer

Stores Officer (Inventory Control)

Assistant Purchase Officer

Assistant Purchase Officer

Assistant Purchase Officer

Assistant Purchase Officer

Staff

Staff

Staff

Staff

Fig: 5.6

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5.6.1 PURCHASE DEPARTMENT


The purchase department and store department placed under the name MATERIALS in KMML. Assistant General Manager Materials is the departmental head of these two departments. Under him there is a Deputy General Manager and below him Manager (Materials). The broad classification of the purchase functions: 1. Purchases made in India: Items brought from Indian market 2. Purchase made in foreign countries: Items that are brought from foreign market 3. Cash purchase: Payment of purchase in cash. If purchase order costs less than Rs.20.000, the mode of payment will be made through cash 4. Local Purchase: If the materials required are of emergency type, the concerned department representative along with Assistant purchase officer buys them from the near market. Then formalities for approved of purchases done after purchase. PURCHASE PROCEDURE Procedures for purchase by the purchase department are:Request for Purchase, Selection of supplier, Purchase approval,and Purchase order. 1. Request for Purchase: The departmental officer in need of goods places orders in the purchase requisition form. In the case of stores, the Inventory control section places the order. Purchase department accepts this purchase requisition form only if the concerned departmental head approves it. The Indenter has to specify the following: Item code: Each material item it given specific 9-dlglt code in KMML. So while placing the orders, the indenter has to mention its respective code. Description of stock verification: It has to be taken from the store department. It should have items like present stock level, Quantity required, Inventory control level-minimum, maximum & reorder level etc.

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Number of items required & its estimated cost. Signature from head of the department. 2. Selection of suppliers: For this, tenders are placed through public tender notice with the approval from TO. The suppliers are asked to quote to their technical & commercial bid with in specified date mentioned in the notice. This procedure is for selecting new supplier. Normally the company keeps a vendor list. The purchase department makes an enquiry to the order list and they are asked to quote technical as well as commercial bid within 15 days. Once date of receiving the quotation is over, on the very next day the bid will be opened and they make a comparative statement and send to the concerned department for getting the technical recommendation. When the indenting department approves technical bid, the suppliers are selected either on the basis of lowest quoted price or the next lowest price. 3. Purchase approval: When the technical bid quoted by the supplier, matches with the department's technical standards, then purchase approvals are made. The following officers make the approvals: DM of the concerned department approves the quotation if quotation amount is up to 5

lakhs Head of the indenting department approves the quotation if the quotation amount is between 5 lakhs and 10 lakhs. MD approves the quotation if the quotation amount is between 10 lakhs and 50 lakhs. Board of Directors approves the quotation if the quotation amount is above 50 lakhs.

If the quotation order is 3 lakhs and above, it has to be first pre-audited and then only issued.

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The Structure in theirPurchase Department is given in Figure: 5.6.1

Fig:5.6.1

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STORES DEPARTMENT
Store Department plays a prominent role in a company. Many a time improper store activities lead to huge losses. The store department of the KMML is one which runs efficiently and effectively. It incorporates many management techniques like inventory control system, ABC classification of items, store reviewing based on moving &non moving items and store location design. The activities carried out by a typical store department are as follows: Receiving materials, Inspection of material, Proper classification & codification of the Material handling. The Structure ofStores Department

5.6.2

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The store department is placed under the material department. The Deputy General Manager (commercial) is the head of this department. The stores officer looks after all the activities related to this department. Under him there are three assistant stores officers- one for receiving material and issuing material, one for classifying and arranging store items (store keeping) and one for inventory control material. Inspection of goods: The store department makes a visual inspection after receiving the goods and preparing store inward book. Then inspection request is sent to concerned department along with other copies attached to it. These copies are for the inspecting representatives for preparing inspection report. Stores received Note: After the inspectors accept the items received, the next procedure is to prepare stores received note. It is a document showing that materials received have been accepted. Bin Card preparation: After the SRN list is made, the next step is Bin card preparation. A Bin card is a document that contains the details of the material received; item code is attached to the material received, item location number, and information regarding the stock level. Material issue note (MIN): The storekeeper issues material only after receiving the MIN. It contains the following details are:Item code, shelf number, Number of item to be issued, to whom it has to be issued etc. Material return note: If the department wants to return the material to store, it is done by issuing material return note. This contains such as the name of the Department from which the material has been returned, value of the item, code number and reasons for the return.

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5.7 ELECTRONIC DATA PROCESSING DEPARTMENT


Data Processing Department mainly deals with processing of information to be used by the employees of KMML. Thus, it mainly involves 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 around 200 personnel computers in the company and all the computers are in local area network. The company is having a 10 megabytes PC backbone copper cabling. It has 4 signals, they are: Stores,Ilmenite beneficiation plant/ Acid regeneration plant, Pigment processing unit / Laboratory. The Structure in theirElectronic Data Processing Department is given in Figure: 5.7

JGM (data processing)

Manager (data processing)

DB Administrator

Assistants

Trainees

Fig: 5.7

The MIS used in KMML is an in house developed software. It started functioning from 1999 December. There is a direct connection from IBM service to purchase, finance, marketing & personnel department. The entire information technology activities are monitored by EDP section. KMML is using Oracle related Database Management System at backend and power builder is used among the finance, purchase, stores, marketing, personnel & production department. The database is fed into the system by each department, which is required to

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generate various managements. A strict security control is incorporated in the operations of various modules. This department is in charge of developing and maintaining the software necessary for each department in the company and also the maintenance of the 200 computers throughout the organization. The server used is a main database server which uses Oracle 8. The front end used is the software called Power Builder. All the 200 computers used in the company are networked. This department has developed software for the HR department which aids them in such areas as attendance management, human resource management, maintaining payroll etc.Recently; they have also developed software called Daily Costing which enables the authorities to know the total and unit prices of raw materials used in each plant every day. There are only three permanent employees in this department now, apart from a few trainees. Efforts are being made to update the front end to browser based technology.

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5.8 FIRE AND SAFETY DEPARTMENT


Fire and safety department, manages the process of giving security to employees by providing training & giving license to employee & mechanist.The Structure in theirFire and Safety Department is given in Figure: 5.8

JGM (TS)

DGM (FIRE & SAFETY)

AGM (FIRE &SAFETY)

FIRE OFFICER

SAFETY OFFICER

FIRE FIGHTER

SAFETY INSPECTORS

Fig : 5.8

The safety department carries out the following activities: 1. Routine plant inspection 2. Plant safety inspection 3. Issue of safety work permits 4. Coordinates & organizing safety committee meetings 5. Giving safety education and training 6. Organizing safety promotional activities.

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5.9 MAINTENANCE DEPARTMENT


The Maintenance department of KMML comprises with the various functioning and the development of the machineries and equipments and is grouped into Electrical, Mechanical and Instrumentation section. The Joint General Manager of maintenance is the top authority of the Maintenance Department. The Main Objectives of the Maintenance Department Are As Follows: To carry out the maintenance work in the plant. To carry out preventive measures to avoid break down of machines.

The Structure in theirMaintenance Department is given in Figure: 5.9

DGM(M) MECHANICAL (AGM-M) PPP-M IBP-M CMRS ELECTRICAL AGM(E) M(E) CIVIL AGM(C) M(C)

INSTRUMENTATIO N AGM(I)

M(I)

DM(E)

DM

DM

DM

DM

PE

PE

PE

PE

PE(IBP)

PE(ARP)

PE(WTP/ BOILER)

APE TECHNICIA N/WORKER S

APE TECHNICIA N/WORKE RS

APE TECHNICIA N/ WORKERS

APE TECHNICIA N/ WORKERS

APE(M)

TECHNICIAN /WORKERS

Fig:5.9

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1. Electrical section: It is controlled by the AGM (electrical).The main function of this department is to ensure flow of electricity throughout the company. 2. Mechanical section: The AGM (mechanical) is the head of this section. The main function is to ensure easy working of machine. The company is doing periodical shutdown to carryout necessary maintenance and servicing of the plant. 3. Instrumentation: The AGM (instrumentation) is the head. This section inspects safetyness of valves, mechanics ets and the working of instruments. A statutory body occasionally visits the company to check the safety of the plant. 4. Civil: This section undertakes the functions relating to implanting new machinery etc.The Manager (civil) is the head of this section.

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5.10 TECHNICAL DEPARTMENT


Technical department acts as third agency to the production and maintenance department. The technical wing takes charge R&D, QualityControl, laboratory and technical services. KMML maintain a fully equipped R&D facility in the area of pigment and plant 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 titanium dioxide pigment, quality improvement and other allied products. The technical and sales service wing extends all helps to customer in the field of application and users. The Structure of Technical Department

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HOD

AGM(TS)

Quality Control

Plant Technical Service

R&D

Manager

Manager

Scientific Officer

Deputy Manager

Deputy Manager

Asst. officer

Scientific officer

Engineer

Anayst

Asst. Scientific Officer

Technician

Analyst

Fig: 5.10

5.11PROJECT DEPARTMENT
Project department is engaged in the expansion programs of the company. They are engaged in the building up of new projects and also decide upon the future plans of the company. Some major projects on which they are currently engaged are: 1. Project for separation of Minerals at an estimate cost of Rs. 21 crores. 2. Capacity augmentation of Synthetic Rutile plant at an estimate cost of Rs.32 crores. The chart showing organization structure in theirProject Department is given in Figure: 5.11 The Structure of Project Department
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EXECUTIVE DIRECTOR

AGM(F)

AGM(Technical)

Manager

Manager

Deputy Manager

Deputy Manager

Officers

Officers

Asst. Officer

Asst. Officer

Staff

Staff

Fig: 5

SWOT ANALYSIS
Identification of the threats and opportunities in the environment and strength and weakness of the firm is the cornerstone of business policy formulation; it is the factors that determine the course of action to ensure the survival or growth of firm. The environment might present opportunities but a company might not have the the strength to exploit all opportunities. Similarly sometimes a firm will not have the strength to meet the environment threats STRENGTHS 1. The availability of cheap and best quality raw material : The major source of raw material is black sand. It is available in Chavara beach, and also the mineral sand consisting of Ilmenite, Rutile, Zircon, and Silminate. 2. High technical oriented :

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All the activities of the organisation are computerized and internet facilities are provided in all the segments of the organisation. Modern machineries and equipment are implemented to conduct the manufacturing process. 3. Eco-friendly and socially committed : The product manufactures in the organisation is highly socio-oriented, in the sense that the quality of the product will be transparency and accountability are specifically noted. 4. The cordial relationship between the management and employees : Here the relationship between the management and the employees is very intensive. It means that the emotions and feelings of the employees are sympathetically considered by the management. The policy of strategic management is followed in the organization. 5. Financial stability with retained earning for meeting future expensive project: The extension programs of the organisation will be conducted through retained earnings. This will be implemented by the full corporation of the employees and management.

6. Good R $ D Department : The R $ D programs of the organisation are admirable. A new venture for manufacturing sponge is underway. 7. Strong Brand Image: The product Titanium dioxide is highly branded in the world market. 8. Price leadership : The price of the product will be fixed by the management itself. 9. Monopoly nature of business : The Titanium product is manufactured in the public sector and hence the organisation holds monopoly in this field. WEAKNESS
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1. Over Employment : The numbers of workers are in excess than what is required. Unnecessary apprentices, temporary employees and casual workers are employed in the organisation. 2. Trade union dominated firm : The unnecessary interference of trade union is a drawback in the organisation. It is detrimental to the smooth working of the organisation. 3. Delay in decision-making : A complex organisation structure causes delay in decision-making. 4. Under utilization of resources : All the resources of the organisation are not used due to mismanagement, which results in wastage. 5. Policy of the Government : The fluctuating governmental policy adversely affects the prosperity of the organisation.

6. Lack of motivation : The company is reluctant to make the employees emotionally involved in their works. OPPORTUNITIES 1. Worldwide deposit of Ilmenite is depleting day by day due to over exploitation, where as in India, only 10% of the total Ilmenite deposit is utilized. 2. Steady growth is user past few years. This implies that there will be steady growth in the consumption of Titanium dioxide pigment in future. THREATS 1. Many types of equipment in the pigment plant are about 20 years old. The chances of breakdowns in future are very high.

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2. Inherent disadvantage of state level public sector organisations in operating in global markets. 3. Since Titanium dioxide pigment is included in the Open General License (OGI) , the import duty on OGL items is reduced to 0% by the end of 2006.this will ultimately help the foreign competitors to market their products at cheaper rate. 4. The cost of production will be higher due to price for raw materials like petroleum coke, burning oil; LPG will grow higher in future.Allowing private parties to mine minerals on a large scale may be possible in future. This will results in overexploitation of natural resources and also have foreign competitors to set up their plants in India.

CONCLUSION Kerala Minerals and Metals Limited (KMML) under the Government of Kerala is the India's first and only manufacturer of Rutile grade Titanium Dioxide pigment using Chloride route. It has won National Acclaim for its impressive performance. It produces about seven grades of Titanium Dioxide pigments and its products range includes Titanium Tetra Chloride, Ilmenite and Rutile etc. KMML has monopolistic position in the Rutile Titanium Dioxide pigment industry in India. Like the other organizations, it also tries very hard to sort out its weakness and designs new strategies for converting the organizations in to an ever-flourishing organization. Regular training and refresher courses arranged by personnel department are part of companys life and apart from skill betterment; they give more important to safety awareness. In KMML, the customers are considered as the king. The marketing experts analyses the
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customers view, maintains close contacts with the customers and play an important role in providing world class services and close attention to customers requirements. In KMML the security procedures are very tight and no consideration is given to those who violate the rules and regulations. The layout of the plant is also very good as in a manner that can meet the requirements very easily. 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 tons to 50000 tonnes and it is planning for its future. The company has a good liquidity position. As their punch line Spreading Splendour indicates, the company is in pursuit of delivering value added products to their customers. The company is redefining their process and shaping their strategy with professional insights.

BIBLIOGRAPHY
BOOKS: Kothari C.R, Research Methodology Methods and Techniques ,New Delhi: New Age International Publishers, 2008. Chhabra T.N, Human Resource Management Concept and issues NewDelhi: DhanpantRai& Co (P) Ltd., 2008. Kotler Philip, Marketing Management- A South Asian Perspective, New Delhi: Pearson Education, 2007.

WEBSITES:

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www.kmml.com www.thehindubusinessline.com www.thehindu.com

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