AN ORGANIZATIONAL STUDY ON

ENGLISH INDIAN CLAY LIMITED,

TRIVANDRUM KERALA

By

Mr. BHARATH R.
Reg. No. 101480

Submitted to the

MAHATMA GANDHI UNIVERSITY

In partial fulfillment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Under the guidance of

Mr. VIGNESH KARTHIK S.A.

ASSISTANT PROFESSOR

SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT

ALUVA, COCHIN, KERALA – 683106
 SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
ALUVA, COCHIN, KERALA – 683106

CERTIFICATE

This is to certify that the report entitled, An Organizational study on

English Indian Clay Limited, Thonnakkal, Trivandrum is a bonafide

record submitted by Mr. Bharath R, Reg. No: 101480 in partial

fulfillment of the requirements for the award of the Degree of Master of

Business Administration during the academic years 2017-2019.

Date: Dr .G. SASHIKUMAR

PRINCIPAL
 SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
ALUVA, COCHIN, KERALA – 683106

CERTIFICATE

This is to certify that the report entitled An Organizational study on,

English Indian Clay Limited, Trivandrum has been successfully

completed by Mr. Bharath R, Reg. No:101480, in partial fulfillment of

the requirements for the award of degree of Master of Business

Administration, under my guidance during the academic years 2017-

2019.

Date: Mr. VIGNESH KARTHIK .S.A.

INTERNAL FACULTY GUIDE
Company Certificate

IV
 DECLARATION

I, Bharath R. hereby declare that the report entitled, An Organizational

study on English Indian Clay Limited, Thonnakkal, Trivandrum is my

original work.

I further declare that this report is based on the information collected by

me and has not previously been submitted to any other University or

Academic body.

Date: Bharath R.
Reg.No:101480

V
 ACKNOWLEDGEMENT

I would like to keep always in mind the benedictions of the almighty GOD for being
my constant guide and support throughout.

I express my sincere gratitude to my college, SCMS School of Technology And

Management (SSTM) for giving me such a fantastic exposure of the real corporate
scenario. I am greatly indebted to Dr. Radha P. Thevannoor, Director, SSTM, for
providing me an opportunity to do an organizational study in the company, as part of
the curriculum.

I am deeply grateful to my faculty in charge and guide Ms Rupa, who was always a
source of inspiration and helped me in the fulfillment of this project.

I also express my sincere gratitude to the Human Resource Manager, Mr.Shayam

Sand all the other staffs in English Indian Clay Ltd, for their support, valuable
suggestions and encouragement extended to me for the successful completion of this
organization study.

I express my profound gratitude to the management for having kindly permitted me to

undertake an organization study in their esteemed organization English Indian Clay
limited, Thonnakkal, Trivandrum.

Last but not least, I thank my parents, all faculty members and friends who have
helped me to carry out this work.

BHARATH R.

VI
 EXECUTIVE SUMMARY
The organization study was done at English Indian Clay Ltd, Thonnakkal,
Trivandrum. The Company was incorporated in 1963 in technical & financial
collaboration with English China Clay Ltd., U.K, the pioneer and the then world
leader in Kaolin processing. So, a company with such a great history and so much
years of experience in production field would be suitable for organization study. The
company has 2 key divisions, clay and starch. Among these two, clay is
manufactured and processed in EICL Thonnakkal plant where the study has been
done. The other division starch is manufactured in Yamuna Nagar, Haryana. The
company’s clay mining and refining operations center on Trivandrum where the
processing plant produces several grades of refined Kaolin, Meta kaolin and
Calcined Kaolin (clay) to cater to the Paper, Paint, Rubber, Plastic, Fiber glass,
Cement etc. EICL was selected for study because they are the leading manufactures
in the clay production field across India. The Study was done from April 2, 2018 to
May 4, 2018. The objective of the study conducted at English Indian Clay Ltd is to
gain organizational familiarizations and an in-depth knowledge of the functioning of
the various departments, history, organization structure, financial performance. Also
it helped get an idea about how the theory learned ideas are practically applied in an
organization. There are mainly 7 departments including Personnel and
Administrative department, Commercial department, Production department,
Marketing and Sales department, Finance department, Research and Development
department, Quality control department. The key features of the company that has
helped it reach in such a good position in the market are mainly their ethically
conducting business affairs, no compromise in production quality and effective use
of R&D. Also the nearby railway and shipping ports are major positives of the
company when the material transportation is considered. EICL is highly profitable
and has a high reputation in the industry. Here two or more departments are held by a
single head. Long term negotiations are maintained between management and trade
unions. The plant is running at full capacity which leads to high wear and tear and
maintenance costs, so company should take better alternative strategies. Company
should emphasize on strategic marketing. This study gives detailed overview of the
company and would be useful to researchers, students pursuing business
administration courses. The study was successfully completed.

VII
 TABLE OF CONTENTS
Chapter Title Page No:
No:
Acknowledgement vi

Executive Summary vii

List of Tables and Figures ix

1 Introduction

1.1 Introduction to the study 2

1.2 Scope of the study 2

1.3 Objectives of the study 3

1.4 Methodology 3

1.5 Limitations of the study 3

2 Analysis Of Business Environment

2.1 Analysis of remote external environment 5

2.2 Industry Profile 6

2.3 Industry Analysis 10

2.4 Competitor Analysis 11

3 Organizational Analysis

3.1 Overview of the Organization 13

3.2 Organization Structure 27

3.3 Functional Analysis 29

3.4 Financial Analysis 46

4 Observation And Conclusion

4.1 Observations & Suggestion 56

4.2 Conclusions 58

BIBLIOGRAPHY 59
 LIST OF TABLES AND FIGURES

Tables Page No

Table 1 Hydrous Clays – Paper & Boards 18

Table 2 Calcined Clays – Paper & Boards 19

Table 3 Hydrous Clays – Paint 20

Table 4 Calcined Clays – Paint 21

Table 5 Hydrous Clays – Printing Ink 22

Table 6 Hydrous Clays – Rubber 22

Table 7 Cable Insulation 23

Table 8 Fully Calcined Clays for Rubber Cable 23

Insulations

Table 9 Plastics 24

Table 10 Cement Concrete 25

Table 11 Ratio Analysis 47

Table 12 Workings 48

Figures Page No

Figure 1 Performance of the company 25

Figure 2 Organization structure 28

Figure 3 Personnel & administrative department structure 32

Figure 4 Commercial department structure 34

Figure 5 Production Department Structure 39

Figures Page No:

Figure 6 Marketing Department Structure 41

Figure 7 Finance department Structure 45

Figure 8 Ratio Analysis 49

Figure 9 Research & Development department Structure 51

Figure 10 Quality control department Structure 53

 CHAPTER- 1
INTRODUCTION
 1 INTRODUCTION
1.1 Introduction to the Study
Organization study helps a management student to acquire knowledge and skills
require making a major contribution to the challenges of industrial and commercial
management. The main purpose behind the study is to understand the overall
performance of the organization, which includes its function and processes of various
departments and their inter-dependence and other activities. The main aim of
organization study is to study the various departments of the organization and
understand their basic functions, their purpose, achievements, competitors and the
mission and vision of the company and their progress towards that. It helps to develop
students with knowledge of business managements who will be able to handle
successfully the complexity and uncertainty of the contemporary business
environment.
The organization study was done at English Indian Clays Ltd, Thonnakkal,
Trivandrum. The Study was done from April 2, 2018 to May 4, 2018. The objective
of the study conducted at English Indian Clays Ltd is to gain organizational
familiarizations and an in-depth knowledge of the functioning of the various
departments, history, organization structure, financial performance. Also it helped get
an idea about how the theory learned ideas are practically applied in an organization.
English Indian Clays Ltd, established in 1966, operates China Clay mines in the
southern most of India, in lush green Kerala. The company’s clay mining and refining
operations center at Trivandrum where the processing plant produces several grades
of refined Kaolin (China Clay - both Spray Dried and Rotary Dried), Meta kaolin and
Calcined Kaolin (clays) to cater to the Paper, Paint, Rubber, Plastic, Fiber glass,
Cement and Ultra marine industries. The plant capacity is 190,000 metric tons per
annum and is the biggest in South East Asia. EICL has been successful in maintaining
strict quality control and consistent conformity to international standards. The
company has been certified to ISO 9002:1994 since 1996 and has now been upgraded
to ISO 9001:2000. EICL has a well - equipped R & D Center, which is recognized by
the Department of Science and Technology, Government of India.
1.2 Scope of the Study
The study pays more attention on the process that takes place in various departments
of EICL, Organization structure and operations management of various departments

2
of EICL. The study is intended to attain a firsthand experience of the overall running
of an organization. A detailed analysis of each of the activities performed by the
department is included in the study. It also provides a chance to see the practical
constraints faced by the managers while putting theory in to practice. The duration of
the study was one month.
1.3 Objectives of the Study
The objective of the study conducted at English Indian Clays Ltd is to gain
organizational familiarizations and an in-depth knowledge of the functioning of the
various departments and other objectives are:
 To study about the organization and its functioning.
 To understand the organization structure.
 To familiarize with different departments and responsibilities of various
departments and department heads respectively.
 To understand how the theoretical aspects are put in practice in the organization.
 To analyze the strength, weakness, opportunities and threats of the organization.
1.4 Methodology of the Study
The analysis of the study was done by using the primary and secondary data
collected during the study period.
1.4.1 Primary data. Primary data was collected through personal interview
with executives of the firm and discussion with the managerial head of the various
departments. Observations was systematically planned and recorded.
1.4.2 Secondary data. The company details and data have been personally
gathered from company profile, annual report documents and other published
booklets and websites.
1.5 Limitations of the Study
The Study is conducted in a limited period of time. Certain areas are restricted, so
detailed study is not possible. Some personal bias may have affected the primary data
collection. Some company documents are confidential in nature. Such data are not
disclosed. Busy schedule of the officers and employees prevented lengthy discussions.

3
 CHAPTER-2
ANALYSIS OF BUSINESS
ENVIRONMENT
 2. ANALYSIS OF BUSINESS ENVIRONMENT
2.1 Analysis of the Remote External Environment
The external factors like government regulations, environment, technology, economy
etc. have huge influence on the performance of the company. Slight variations in
these might have huge difference in other areas of the company which can be in a
positive or negative way depending on the factor.
These factors together are analyzed and this analysis is known as PESTEL analysis.
Political, economical, environmental, technological, social and legal factors are
considered in this analysis.
2.1.1 PESTEL analysis of EICL. Political factors are basically to what
degree the government intervenes in the economy. Government’s tax policy, labor
law, environmental law, tariffs and political stability are the main points that are
needed to be considered in political factors. Politics in Kerala are dominated by two
political fronts: the Communist party-led Left Democratic Front (LDF) and the Indian
National Congress-led United Democratic Front (UDF) since late 1970s.These two
parties have alternated in power since 1982. The instability of the government has
affected the development of EICL slightly. The terms and conditions approved by one
party may not be easily approved by the other party. This retards the long term
development plans.
Another major influencing factor that is to be considered in the PESTEL analysis of
EICL is technology. Technological factors include technological aspects such as R&D
activity, automation, technology incentives and the rate of technological change. They
can determine barriers to entry, minimum efficient production level and
influence outsourcing decisions. Since EICL has a well-equipped R&D center that is
approved by the department of science and technology, technological growth was
always there. The company has regular samples of various minerals taken at various
stages and tested regularly and accurately. This helps them analyze the composition of
the product which helps them to recommend the right product for their customers and
also develop customized minerals if required.
Environmental factors include ecological and environmental aspects such as weather,
climate, and climate change. As EICL is located near the coastal region of south
Kerala, weather and climatic conditions are always supporting. Usually Kerala has a
moderate weather even if it is monsoon or summer. So they won’t affect the

5
production process at all. But still during the monsoon season, the clays stored outside
without much protection are needed to be taken care.
These three are the major influencing parts in PESTEL analysis. Legal, social and
economic factors also have a part to play but their effect is small when compared with
the above factors.
2.2 Industry Profile
China clay or Kaolin is a clay mineral with the chemical composition
A12SiO5(OH)4.Rocks that are rich in kaolin are known as China clay. Kaolin has a
low shrink-well capacity and a low caution exchange capacity (l-15 meg/100g). It is a
soft, earthy usually white mineral (Dioctahedral phyllosilicate clay), produced by the
chemical weathering of aluminium silicate minerals. It is one of the most abundantly
available clay in the crust. A large variety of china clay is mined all over India. Super
fine white china clay mined in the Chaibasia, Bihar. It is formed when granite is
changed by hydrothermal metamorphism. China clay occurs in the deposits in the
form of china clay rock, a mixture of up to 15 percent china clay and up to 10 percent
mica, and the remainder being quartz. In its dry state china clay consists of a fine
white powder. In a damp state, and when well kneaded, it forms a firm, sticky paste.
In its natural state, subject to the continual absorption of water through climatic
changes, the clay is normally of a soft consistency. China clays have long been used
in the ceramic industry, especially in fine porcelains, because they can be easily
molded, have a fine texture, and are white when fired.
Farther west in Cornwall is the great clay-bearing area known as the Hens-barrow
district, lying to the north west of St. Austell and Par. Great quantities of the clay
from this part are shipped from the neighboring part of Fowey to all parts of the
world. Hens barrow is the greatest of the English china clay districts. South of the
mining town of Redruth lies another district, and in the “toe” of Cornwall there is a
further china clay area. France’s clays are made in to the famous Sevres and Limoges
potteries. These clays are also used as a filter in making paper. In the United States,
deposits are found primarily in Georgia, North Carolina, and Pennsylvania.
2.2.1 Clay formation. China clay, or Kaolin, is believed to have been formed
through two processes:

Hydrothermal activity (hot gases combined with high pressures) caused the
granite(feldspars) to decompose.

6
Surface precipitation combined with humic acids from the bogs that were present, or
by deep tropical weathering.
Kaolin or china clay is formed from the decomposition of minerals in granite. Granite
is one of the commonest igneous but varies considerably in its composition from
place to place. While the quartz is never anything, but quartz, the Feldspar can be a
silicate of alumina with Potash, soda or lime and the mica the potash-rich muscovite
or the iron rich biotite.
2.2.2 Global scenario. The early history of the industry is, as would be expected,
very much concerned with the discovery and production of china clays for use in
ceramics. The story starts thousands of years ago and thousands of miles away.China,
the pure white porcelain used by the Chinese, was discovered thousands of years ago
and has always been a much priced material. Despite many attempts to find sources
elsewhere, it remind elusive until a few deposits were found in some parts of Europe
and America early in the eighteenth century. The search to find deposits in England
was increased.When china clay or kaolin was discovered in England, it was realized
that it was of much fines quality than found elsewhere in Europe. Aquaker
apothecary-cum-potter, William Cook Worthy made the discovery in Cornwall
1746.He experimented with various samples and in 1768 he took out the patent to use
the material, soon producing items at his Plymouth porcelain factory. Until that time
English pottery has consisted of coarse earthenware and had suffered considerable
completion from elsewhere.As more potteries made use of proclaim so the demand
grew and by the early nineteenth century the kaolin industry had become highly
successful with many of the potters owning rights to mine the material of them. In
addition by the middle of the nineteenth century, china clay was increasingly being
used as a raw material by the developing paper industry.Early in the twentieth century
the industry was made up of some seventy or so individual procedures, each
competing with little regard for marketing or standards. There was almost no capital
investment or product development and over production was great, wages were low
and working conditions were poor.Deposit this by 1910, production was approaching
a million tons a year and paper had completely overtaken ceramics as the prime user
of China clay. Over 75 percentage of output was exported, with North America and
Europe being major markets. The China clay industry in Cornwall and Devon held a
virtual monopoly on the supply of that mineral to the world market. Just after the First

7
World War, the three leading procedures joined forces-forming English Indian Clays
Limited in 1919, placing almost 50 percent the industry’s capacity under one banner.
2.2.3 National scenario. The ceramics industry in India came into existence about a
century ago and has matured overtime to form an industrial bare-from traditional
pottery making, the industry has evolved to find its place in the market for
sophisticated insulators, electronic and electrical items. Over the years the industry
has been modernizing through new innovations in product profile, quality and design
to emerge as a modern, world class industry ready to take on global competition. The
Indian Ceramic industry ranks at 8th position in the world and products around 2.5
percent of global output. The industry provides employment to 550,000 people of
whom 50,000 are directly employed. Gujarat accounts for around 70 percent of total
ceramic production. The ceramic products are 60th in organized as well as
unorganized sector. The share of organized sector in total production is around 55
percent. The organized sector is characterized by the existence of a few large players.
Small and medium enterprises(SMEs) accounts for more than 50 percent of the total
market in India, offering a wide range of articles including crockery, art ware, sanitary
ware, ceramic tiles and refractory and stone ware pipes among others. Most of the
players are grouped together in clusters. Over the last two decades, the technical
ceramics segment has recorded an impressive growth propelled by the demand for
high alumina ceramics, cutting tools and structural ceramic industry has emerged as a
major manufacture’s and supplier in the global market.
2.2.4 State scenario. The state is plenteous in China clay kaolin which forms an
important raw material in the production of porcelain items such as crockery and
glazed tiles. It is the finest variety of the kaolin found in the entire country and is
fundamental in the high tension insulators and sanitary ware producing units. About
80 million tons of such fine china clay are to be found in the state. Another variety of
clay is found in Kerala and is useful albeit of an inferior raw material in the
production of tiles and bricks. Graphite, an allotrope of carbon which is used as the
manufacture of the lead used in pencils also occurs freely in the state. The silica and
quartz deposits in the state are estimated to be 75 million tons. The remaining
minerals deposits wealth of the state is a composition of 79 million tons of lime stone,
11 million tons of bauxite, 35 million tons of illuminate, 3 million tons of retiles, 1
million tons of monazite and 0.7 million tons of borophite.The bounties of the state

8
mineral wealth need to be exploited and put to proper use. The industrial potential of
this mineral treasure has not been reined in yet.
2.2.5 Uses of china clay. The first use to which china clay was applied in the West of
English was, as already stated, the manufacture of porcelain and this is still popularly
believed to be its sole use. Large quantities are used for “bleaching”, i.e. filling for the
spaces between the threads of calicoes and other cotton goods and also as a material
for giving weight to cotton yam; and still larger quantities are used by papermakers to
give “body” to their papers, especially to printing papers.
The current application for china clay are as follows.
Paint application.China clay improves the optical, mechanical, rheological
properties of paint. Calcined clay is widely used in stain and matt pain where they can
deliver increased capacity, whiteness and scrub resistance. It is also useful as partial
scrub for the expensive TiO2 pigment.
Rubber application .China clay adds strength, abrasion, resistance and rigidity to
rubber. Calcined clay finds extensive use in high value thermoplastic elastomers for a
variety of applications and in rubber insulation on high voltage power lines.
Plastic applications. Clay is used in plastics to provide smooth surfaces,
dimensional stability and resistance to chemical attack, to conceal fiber reinforcement
patterns to reduce shrinkage and cracking during polymer compounding and shape
forming. It is also used to improve mechanical, electrical and term at properties of
PVC cables. It is used in special films where it impacts anti-blocking or infrared
absorption characteristics. Calcined clay is one of the major additives used in
manufacture of automotive parts based on engineering thermoplastics.
Fiberglass.China clay is used for fiberglass manufacturing. It allows the
strengthening of fibers integrated in to the material. It improves the integrations of
fibers in products requiring strengthened plastic car boats, marine products, aviation
and aerospace products, circuits board manufacturing fiber glass products, fiber glass
building and construction products etc.
Ceramics.China clay converts to mullite glass when fired to temperature
exceeding 1000 c. It is used in formulation described as white ware which consists of
tableware, sanitary ware and wall and floor tiles. It provides strength and plasticity in
shaping of these products and reduces the amount of pyroplastic deformation in
process of firing.

9
 Agricultural industries. The caking or setting of granular fertilizers (prills) is a
serious problem since the caked mass must be broken down in to its individual
practices before it can once again become a free- flowing product. Kaolin, some of
which is amine-coated, acts a non- stick coating to the fertilizer prill. As color is of no
significance, cheaper grades can be used.
Some of the uses listed below are already common place while others are innovative
and in the development stage.
Plastic film, video and audio tapes, where clays are used as anti-blocking agents.
Laundry products, washing powders and detergents.
Decorative concrete mortars and renders.
Mark-resistant polypropylene for automotive use thermo set moldings for baths,
shower trays.
Light weight concrete water treatment systems.
Biotechnology: - Ability of lightweight high-strength ceramic materials to support
microorganism.
2.3 Industry Analysis
2.3.1 Porters five force analysis. Porters five forces analysis is a framework
for industry analysis and business strategy development. It draws upon industrial to
derive five forces that determine the competitive intensity and therefore attractiveness
of a market. The five forces are-
Threat of new entrants
Threat of substitute products or services
Bargaining power of customers (buyers)
Bargaining power of suppliers
Intensity of competitive rivalry
As the company leads the market with a market share of 80% and tops first position,
they don’t have a healthy competitor, thus there is no real threat for the company. So,
the intensity of competitive rivalry is very low. Therefore, both customers and
suppliers doesn’t have much bargaining power as EICL is the only company that can
provide such large quantity of products.
Also it is difficult for a new company to grow as big as EICL as it needs years of
experience in this field. A substitute for clay is not an available option in industries
like paint and cement. So a new substitute product replacing EICL product is
impossible.
10
2.4 Competitor Analysis
EICL, being the largest producer of china clays in India, has a very few competitors.
The monthly production of EICL (12000 tons) is higher than the annual production of
the companies in the same sector. EICL exports cover around 12-14 countries with
80% of its exports to U.A.E. Therefore in the international level market, there is
competition from markets such as U.S.A, Brazil, U.K, and china. But here
competitors are not a threat to EICL as all other companies are far behind them. Some
of its competitors are:
 Kerala Ceramics, Quilon
 20 Microns.
2.4.1 Microns. Among these 20 microns can be considered as the only company with
a mentionable turnover. 20 Microns was founded in 1987 in the bustling industrial
city of Vadodara to manufacture White Minerals of supreme quality. Ever since then,
20 Microns sustained efforts towards excellence and innovation has made it a
prominent name in the industrial arena.20 Microns is India’s largest producer of white
minerals offering innovative products in the field of Functional fillers, Extenders and
Specialty chemicals.
The working of the Company during the year 2012-13 has been impacted due to
adverse effect on the operations of the Bhuj Plant because of the shift of fuel source
from imported coal base producer gas to Furnace oil. This was done to comply with
the requirement of pollution control laws. The functioning has now been stabilized
and it is expected that the loss of turnover would be regained in the Financial Year
2013-14.
During the year under report, your Company has achieved a Gross Turnover of
28516.81 Lacs (Up by 6.5% from 26768.68 Lacs of the previous year). The
operations have resulted in a Net Profit before Depreciation, Interest and Tax
(PBDITA) of 3,720.38 lacs as compared to 3,525.90 Lacs of the previous year.
When compared with EICL’s gross turn over, this comes nowhere near to it. Also the
industrial growth and market share of 20 microns is also low. Thus we can say that
EICL doesn’t have a healthy competitor.

11
 CHAPTER-3
ORGANIZATIONAL ANALYSIS
 3.ORGANIZATIONAL ANALYSIS
3.1 Overview of the Organization
EICL Limited, a Company incorporated in India, was part of the erstwhile Thapar
Group. The Company was incorporated in 1963 in technical & financial
collaboration with English China Clays Ltd., U.K, the pioneer and the then world
leader in Kaolin processing. This collaboration with ECC ceased in the year 1992.
EICL has two key Divisions, viz., Clay & Starch Divisions. The Clay Division,
having three manufacturing locations in Kerala, specializes in mining and processing
of high end kaolins. The Starch Division has two manufacturing units, one located at
Yamuna Nagar, Haryana, manufacturing Starch and its derivatives, and the other
located at Shimoga exclusively specializing in the manufacture of value added
Modified Starches for various Industrial applications. The Starch Division was
started under the name of Bharat Starch Industries in the year 1937. It was
subsequently taken over by EICL Limited in the year 2002. Both the Divisions of
EICL have grown to be market leaders in their respective fields. This growth has
been chiefly driven by prudent investment in world class R&D facilities for research
in Kaolins and Starches, enabling these Businesses to be specialized solution
providers for various applications spanning diverse Industries.
3.1.1Vision. The vision of English Indian Clays is:
“To be a leader in processed china clay market in Asia and to be an employer of
choice, fostering a culture that values dedication, respect and continuous
improvement.”
3.1.2 Mission. The mission of English Indian Clays is:
“To provide consistently high quality products and materials to our customers in a
safe, timely, and efficient manner, at lowest possible cost and grow with them and
ensure the growth and development of employees of the company in order to achieve
the objectives of the organization and the career goals of the employees.”
3.1.3 Quality policy of EICL. EICL is committed to processing and supply of value
added hydrous and Calcined clay, meeting customer requirements of quality, delivery
and application support through continual improvement of the effectiveness of its
quality management system.
3.1.4 Corporate objectives. The corporate objectives of English Indian Clays are:
1.To adopt transparency and responsibilities in its operation and enhancement of
overall long term values of its shareholders, customers, lenders and employees.
13
2.To ensure maximum utilization of available human resources.
3.To procure material of required quality or quantity at most competitive process for
uninterrupted production and maintenance of plant with least tie ups in inventories.
4.To develop services and retain customers for the range of products manufactured by
the company and to meet customer needs in terms of new products or services.
3.1.5 History. English Indian Clays Limited was established by Maharaja of
Travancore along with Mr. M.N. Ramakrishna Iyer in 1966, in collaboration with
English China Clay (ECC), UK who provided the machinery and expertise. The first
plant commissioned was the Rotary Drier plant with a capacity of 15000 TPA. Thapar
group took over the company in the year 1970. The company went in for automation
during the second half of 1980’s to improve productivity and the company registered
significant growth and by the end of 1985, it began to achieve to steady profit. By
1990 a second plant was commissioned, a spray drier plant with a capacity of about
20000 TPA. In 1994, EICL was awarded ISO 9002 certification for quality assurance
in production. In 1995, third plant, the calciner plant was commissioned by EICL with
a capacity of 2000 TPA. It produces Calcined clay which is another variety of china
clay. In 2003, the company commissioned a 20000 TPA Calciner plant at Thonnakkal
as a part of its continuous expansion.
This collaboration with ECC ceased in the year 1992. In 1993 the company
commissioned the Pondicherry project and commenced leasing activities. In 1994,
EICL was awarded ISO 9002 certification for quality assurance in production. In
1995 English Indian Clays Limited is one of the leading manufacturers of processed
china clay in our country. The company was established in 1966. It is a limited
company incorporated under provision of the Indian Companies Act, 1956 and is
owned by the Thapar group, one of the industrial giants in the country.
The Thapar group in a span of less than eight decades has grown to be among the
largest and most diverse industrial groups in India from a modest beginning in local
mining the group has expanded in to a wide spectrum of activities representing major
industries. The company’s clay mining and refining operations centre around
Trivandrum where the processing plant produces several grades of refined
kaolin(china clay both spray dried and rotary dried), meta kaolin and Calcined
kaolin(clays) to cater to paper, paint, rubber, plastic, fiberglass, cement and
ultramarine.

14
EICL has since been actively engaged in the manufacture and processing of china
clay of different grades for use as a coating agent and filling agent. The company has
its clay manufacturing units at Veli, Thonnakkal and Kollam located in
Thiruvananthapuram, Kerala. The installed capacity of the plants was 36,000 MT per
annum initially and it has since been increased to 2, 13,600 MT per annum as of date.
The starch business has two manufacturing divisions at Yamunanagar in Haryana and
Puducherry. The starch division at Yamunanagar can trace its origins back to 1937
when Late LalaKaram Chand Thapar promoted a company by the name of Indian
Starch & Chemicals Limited. The name of this company was later changed to Bharat
Starch Industries limited. The starch division at Puducherry was set up in 1994-95 to
manufacture modified starches for industrial uses. The divisions have the distinction
of being the only starch company in India to have acquired ISO-9002 certification and
DSIR recognized R & D centre. Current starch producing capacity of the company is
1, 01,040 MT per annum. The company acquired the starch business of erstwhile
Bharat Starch Industries Limited (BSIL) with effect from April 1, 2001.
As a pigment and extender, china clay it is used extensively in the paper and paints
industry. As filler, it is used in the manufacture of plastics, detergents, rubber goods
and paper; as raw material, it is used by glass and ceramic industries for making
fiberglass and porcelain respectively. As additive, it is used by the soap industry and it
is also used by the paper industry for specialty coating purposes as well in order to
impart strength and shine and water repellent characteristics to the paper.
Starch is used in the paper industry to increase the strength of paper-sheet & to
improve the drainage, make paper less porous, for giving gloss, whiteness &
smoothness to the paper. It is used to provide brightness & sharpness to the print and
it is used as a bonding agent. In the textile industry, it is used to impart an abrasion
resistance capacity to yarn and yarn to loom. It is an excellent fibre binder, both for
natural and for synthetic fiber, gives high colour yield with sharp and bright prints,
imparts weights to the fabrics, compatible to thermoses resins and acts as a good
finishing agent for cotton and blended yarns. In food industry it acts as thickener or
body developer, improves the texture of the food products. Corn syrup and allied
products are used in production of hard-boiled candies, soft candies, chewing gums,
bubble-gums, toffees, lozenges, and in breweries as a good fermentation medium and
flavour and texture provider. In pharmaceutical industry it acts as a carrier of the

15
medicines. In tablets it is the main filler and acts as a Tablet disintegrate. The main
use of the byproducts is as cattle feed.
Strong R&D with well equipped application laboratories are there at all the three
manufacturing locations i.e. Thiruvananthapuram, Yamunanagar and Puducherry. The
lab has Paper, Paint, Rubber, Cement and Ceramic industry specialists, supported by
the most modern equipments, who constantly thrive for offering proactive solutions to
the respective industries.
EICL products offer distinct techno-commercial advantage in Africa, South East Asia,
Far East and Middle-East markets due to its geographical location.The company has
been certified to ISO 9002:1994 Since 1996 and has now been upgraded to ISO
9001;2000. EICL has a well equipped R&D Centre, which is recognized by the
department of science and technology, Government of India.
EICL has been successful in maintaining strict quality control and consistent
conformity to international standard.
3.1.6 Product profile. EICL’s Clay business is the largest integrated clay facility in
Asia, mining and refining high end Calcined and Hydrous Clays.
EICL operations are multi location with an installed capacity of 240,000 tons per
annum. With the commissioning of its new calciner in 2009, EICL has increased the
Calcined Clay capacity to 60,000 tones.
EICL products touch and enrich everyday life of people through wide range of
applications spanning diverse segments including paint, paper, inks, plastics,
fiberglass and catalysts, etc.
The corner stone of EICL philosophy is to be a solution provider to customers through
value enhancing products and services. Application needs of user industries are
incorporated at incubation stage itself through extensive interaction with customers
and our application specialists work closely with customers at shop floor integrating
its use.
EICL believes in building partnerships that are long lasting. EICL’s performance
enhancing pigments are classified into No. 1 fine grades and regular grades. The fine
grades of Calcined Clays are used as partial substitute for TiO2.
The fine Hydrous Clays are used for premium paper coating application, delivering
excellent print characteristics and rheology. The regular grades are used as extender
pigments and precoats enhancing opacity and whiteness providing the right base to
build on.
16
The premium grades are also used by the Cable and Plastic Industries taking care of
specific application requirements of volume resistivity and ease of extrusion.
Applications of user industries are as follows.
Paper & Board
Paint
Printing Inks
Rubber
Cable
Plastic
Glass Fiber
Ultramarine
concrete
EICL products touch and enrich everyday life of people through wide range of
applications spanning diverse segments including paper and board, paint, paper,
printing inks, plastics, fiberglass, cable insulation and cement concrete.
Paper and Boards-Hydrous clays. EICL has normal, fine and ultrafine grade
hydrous clays for use in wet end, pre-coat and top coat formulations of Paper and
Paper Boards. EICL Grades are among the best in the world in terms of Brightness,
rheology and fineness. These grades are designed to give excellent coated surface
properties like gloss, shade and smoothness.
Specialty grades like Delaminated Clays give excellent results in terms of opacity and
gloss. For the detailed product specification of hydrous clays refer table 1.
Paper and Boards-Calcined Clays. EICL has normal, fine and ultra-fine grade
Calcined clays for use in Wet end, pre-coat and top coat formulations of Paper and
Boards. Normal Calcined clay is used for paper filling application, fine grade used for
pre coat and ultra-fine grade finds application in topcoat. The high brightness, Micro
porous structure with controlled particle size makes normal Calcined clay suitable for
wet end application for enhancing opacity and brightness of paper/ Board.
The ultra-fine grade Calcined clay with narrow particle size distribution, close to that
of Titanium dioxide, favors partial replacement in pre-coat and topcoat formulations.
For the detailed product specification of calcined clays refer table 2

17
Table 1
Technical specification and application of Hydrous clays-Paper and Boards

Median
Oil
Product Form Brightness Particle Application
Absorption
size
Wet end as
KCG Lump 84.0 0.6 35 opacifying
filler
Pre coat in
BCK Lump 85.0 0.5 38
Boards, Paper
Spray Pre coat in
BCK 85.0 0.5 38
Dried Boards, Paper
Light weight
DLC 80 Spay Dried 85.0 0.4 42
coating
Light weight
DLC 90 85.0 0.35 42
Lump coating

Top coat in
86.5 0.35 45
High Boards, Paper
Lump
gloss
Top coat in
87.0 0.30 45
Spray Boards, Paper
Supercoat
Dried
Top coat in
87.0 0.30 45
Spray Boards, Paper
SG 90
Dried
Top coat in
87.5 0.28 45
Super Spray Boards, Paper
gloss Dried

18
Table 2
Technical specification and application of Calcined Clays-Paper and Board

Median
Oil
Product Form Brightness Particle Application
Absorption
size

Himafil Powder 90.0 1.7 55 Paper filling

Himacot Powder 92 1.3 65 Pre coat in boards

Himafine Powder 93.5 0.8 75 Top coat in

boards

Paint-Hydrous clays. EICL has normal, fine and ultrafine grade Hydrous Clays
for use in paint, where the main application is in architectural water based paint.
Regular grade hydrous clay are used in as functional filler in High PVC water base
paint. The Fine Particle size distribution, surface charge and the platy structure of
Hydrous Clay enhances the functional property of paint film like gloss and opacity. It
also improves the anti-settling and rheological properties of paint.
The Ultrafine grade Hydrous clay with narrow Particle size distribution, close to that
of Titanium dioxide, enhances the effective spacing of Titanium dioxide particles and
helps partial replacement in High sheen water based paints and solvent base glossy
enamel paints. For the detailed product specification of hydrous clays refer table 3.
Paint-Calcined Clays. EICL has normal, fine and ultra fine grade Calcined Clays
for use as opacifying extender in water based paints. The high brightness, Micro
porous structure with controlled particle size distribution of Calcined clay enhances
the light scattering property which imparts higher opacity and brightness of paint film.
This improved opacifying property of Calcined Clay enables partial replacement of
Titanium dioxide in paint formulation. The normal and fine grade Calcined Clay are
used in High PVC water based paints and ultra fine grades are used in medium PVC
water based emulsion paints. For the detailed product specification of calcined clays
refer table 4.
19
Table 3
Technical specification and application of Hydrous Clays-Paint

Median
Oil
Product Form Brightness Particle Application
size Absorption

Functional filler in
Centrex 60 Powder 83.0 0.9 32 High PVC paint

Functional filler for

KCG Powder 84.0 0.6 35 High PVC waterbase
Distemper

Functional filler for

BCK Powder 85.0 0.5 38 High and Medium PVC
White and Light colour
water base Emulsion

Opacifying filler for

Medium PVC water
DLC 90 Powder 85.0 0.35 42 base paint

Functional filler for

Medium PVC water
Hibrite Powder 86.5 0.35 45 base paint

Opacifying Filler for

Supershine Powder 87.0 0.30 45 partial replacement of
Titanium dioxide in
Low PVC High sheen
water base paints
Opacifying Filler for
partial replacement of
Superlustre Powder 87.5 0.25 45 Titanium dioxide in
Low PVC High sheen
water base paints and
Solvent base glossy
enamel

20
Table 4
Technical specification and application of Calcined Clays-Paint

Median Oil
Product Form Brightness Particle Application
Absorption
size

Himafil Water based High

Powder 90.0 1.7 55 PVC Emulsion
Paint

Water Based
Himatex Powder 92 1.3 65 High PVC
Emulsion paint

Water based
Himafine Powder 93.5 0.8 75 Medium PVC
Emulsion Paint

Printing Ink-Hydrous Clays. EICL has normal, Fine and Ultra fine grade hydrous
clay for printing ink application. The platy structure, fine particle size distribution and
medium oil absorption property of Hydrous Clay provide thixotrophy and improve the
print texture, ink holdout and print gloss. EICL Hydrous Clays are normally used as a
functional filler in News print paste ink formulation, Gravure publication, packing ink
(rotogravure) and flexographic inks. For the detailed product specification of hydrous
clays refer table 5.
Rubber-Hydrous Clays. EICL has normal grade hydrous clay for rubber
application. Hydrous Clay is used as reinforcing filler in Rubber formulation, which
improves resistance to abrasion, tear and tensile strength. For the detailed product
specification of hydrous clays refer table 6.

21
Table 5
Technical specification and application of Printing Ink-Hydrous Clays

Product Form Brightness Median Oil Application

Particle Absorption
size
Functional filler
New print Paste ink
BCK Powder 85.0 0.5 38

Opacifying filler
New print Paste
DLC 90 Powder 85.0 0.35 42 and Liquid ink

Functional filler for

Liquid ink
Hibrite Powder 86.5 0.35 45

Opacifying Filler
Superlustre Powder 87.5 0.25 45 for partial
replacement of
Titanium dioxide
in liquid ink

Table 6
Technical specification and application of Rubber-Hydrous Clays

Product Form Brightness Median Oil Application

Particle Absorption
size

KCG SD Spray 84.0 0.7 35 Reinforcing filler in

Dried rubber products

22
 Cable Insulation-Metakaolin for PVC Insulations. EICL has metakaolin grade
for use in PVC cable insulations to improve the volume resistance in medium and
high voltage cables.Himapol and Himacab grades are recommended for use in
insulating compounds to attain Volume resistivity of the order of 1014 ohms or above
For the detailed product specification refer table 7.
Fully Calcined Clays for Rubber Cable Insulations. EICL has Fully Calcined Clay
grade - Himafil, which is recommended for use in Rubber cable insulations to
improve the volume resistance in high voltage cable insulations. For the detailed
product specification of hydrous clays refer table 8.

Table 7
Technical specification and application of Cable insulation

Product Form Brightness Median Oil Application

Particle Absorption
size
Himapol Powder 83.0 1.2 60 PVC high voltage
cable

Table 8
Technical specification and application of Fully calcined clay for rubber
cable insulations

Product Form Brightness Median Oil Application

Particle Absorption
size
Himafil Powder 90.0 1.4 60 5 Rubber Cable

Plastics. EICL has normal and ultra-fine grade Calcined Clay for Plastic application.
Calcined Clays are used in plastic for imparting specific functional properties like
Anti blocking
IR Blocking
The controlled particle size distribution and irregular shape of Calcined Clay impart
anti blocking property in plastics.
Table 9

23
Technical specification and application of Plastics

Product Form Brightness Median Oil Application

Particle Absorption
size

Himafil Powder 90.0 1.4 60 As an anti blocking agent

in Polyethylene Film.

Himafil Powder 90.0 1.4 60 As an IR blocking agent

in Polyester film.

Himafine Powder 93.5 0.8 75 Partial replacement of

Titanium dioxide in
master batch

Cement Concrete-Hydrous Clays. EICL has the High Reactive Metakaolin grade,
Himacem, which is an efficient pozzolan in Cement Concrete.
Himacem is added to concrete to improve the compressive strength and increases
durability of concrete by lime fixation and arresting of deterioration of concrete by
weathering. Himacem has high chemical resistance which makes the product suitable
for construction of high span bridges, under water structures and chemical plants.
The major application of pozzolans is in High Performance Concrete - i.e. concrete
designed for giving compressive strengths more than 45 N/sq.mm.
Traditionally, Silica Fume (Micro Silica) has been the most widely used pozzolan by
concrete industry. However, in the last 2 decades, Metakaolin has emerged as the
preferred pozzolan.
Metakaolin has advantage over Silica Fume in that it is factory produced for the
concrete industry whereas SF is a byproduct. Silica fumes are very fine in nature and
are black in colour. Metakaolin exhibits better workability and is light in colour.
EICL has been producing Metakaolin for the concrete industry for over a decade now
and we have been exporting regularly to UAE, Kuwait and Germany for the last many
years.

24
Table 10
Technical specification and application of Cement Concrete

Product Form Lime Grit D 50 Application

Reactivity (+300#)

Himacem Powder 1050 mg <1% 1.5~2 Ad mixture in Concrete.

Ca(OH)2 /g

3.4 Business performance. The financial performance of the company for

the last 5 years is given in the graph below.

Figure 1
Performance of the company

25
Note: The graph has been made from the data obtained from finance
department.
During the year 2009-2010 the company witnessed sustained recovery from the global
economic recession and the overall performance of the company was impacted
positively. The Company registered a sales growth of 18% with a turnover of Rs.343
Crores as against Rs.290 Crores in the previous year. The value of exports of the
company has increased from Rs.31 Crores to Rs.36 Crores, an increase of 16% over
the previous year, in line with the global recovery from recession. In terms of volume,
exports increased to 17634 MT from 16555 MT, registering an increase of about 6%.
The Clay Business of the Company recovered fully from the economic slowdown of
the Indian economy in the first half. The growth momentum is expected to sustain
during 2010-11. Due to the strong recovery of the paint industry during the financial
year under review, and the general pickup in all user industry segments other than
fiberglass, the sales of the clay business registered significant growth.
During the year 2010-2011, the Company registered a nominal growth of 6% in its net
sales turnover from 343 Crores in the previous year to 355 Crores in the current year.
The net sales from clay business increased from 178.45 Crores to 189.43 Crores (an
increase of about 6% over the previous year). During the year 2011-2012, the
operations of your company were adversely impacted due to slow down in the
manufacturing sector. The Company registered a marginal sales growth of 6% with a
turnover of 378 Crores as against 356 Crores in the previous year. However, higher
cost of raw material particularly maize, and increased cost of fuel and chemicals in
both business segments, impacted the overall profits of the Company as the increased
cost of inputs and raw material could not be passed on fully to the customers. The
Company registered an overall growth of about 11% in its net sales turnover from `
378 Crores in the previous year to 421 Crores in the current year. During the year
2013-2014, the Company has registered a marginal growth of 9%, with a net turnover
of 462 Crores as against 421 Crores in the previous year.
3.2 Organization Structure
Organization structure is the systematic arrangement of the people working for the
organization to achieve predefined goals.It refers to the formal system of task and
reporting relationships that controls, co-ordinates and motivates employees so that
they work together to achieve organisational goals. It is more than boxes on a chart; it
is a pattern of interactions and co-ordination that links the technology, tasks and

26
human components of the organisation to ensure that the organisation accomplishes
its purpose.
The structure has two dimensions, horizontal and vertical. The horizontal dimension
indicates the departments and vertical dimension indicates hierarchy. On the basis of
functions, products, process, territory, grouping of activities into departments or
divisions can be done and these groups are combined in to identifiable segments.
Grouping of activities is an essential step in every organization and it helps to design
an organization structure.
Board of management elected by members of the federation is headed by a chairman.
From those members an executive committee and a chairman are elected. The
federation has to get the approval from the board before implementing major decision.
The type of structure EICL follows is line organization structure where the authority
and responsibility flow in a downward trend from top to bottom. The advantage of
line organization is that prompt and effective decisions can be taken. This is a very
simple structure and orderly communication is possible. This structure is suitable
where the work is routine.
The organization structure of English Indian Clay Limited is as follows:
Level 1- Chairman. Chairman controls the overall activity of the organization.
He is the reporting officer of the level 2 managers. He is responsible for solving issues
at his level in the most of the situations.

Level 2- Managing Director. Managing director is responsible for solving

issues at this level in most of the situations. The Managing director is the Chief
executive of the corporation. He is assisted in the registered office by the heads of
various divisions.

Level3- Low level Management. Every departmental manager is subordinated

by one or more middle level managers. Each of these managers will have a deep
technical knowledge about the functions of that department.

27
Figure 2
Organization structure
Note: CFO: Chief Financial Officer, CS: Company Secretary, AGM: Assistant
General Manager, PPC: Production Planning and Control, IT: Information
Technology, F&A: Finance and Accounting, P&O: Production and Operations

28
3.3 Functional Analysis
The English Indian Clays Limited has certain functional departments. A detailed
analysis will provide an overview of how the organization functions and facilitates to
know the impact of efficiency of each department to achieving the overall objective of
the organization. At English Indian Clays Limited, the departments are classified
according to their functions i.e. functional departmentation, which follows the
principles of grouping activities in accordance with the functions. The functional area
consists of 7 departments, each headed by senior managers or Deputy General
Manager. They include the following:
1. Personnel and Administrative Department
2. Commercial Department
3. Production(operation) Department
4. Marketing and Sales Department
5. Finance Department
6. Research & Development Department
7. Quality Control Department
3.3.1Personnel and administration department.ThePersonnel and
Administration department acts as a link between the employees and the top
management. It works in close contact with all other departments and also coordinates
various activities within the organization. The Kochuveli EICL plant has 278
permanent workers and 200 contract workers. Out of 278 permanent workers there are
72 officers, 36 staffs and 170 workers.
Recruitment and selection. The recruitment and selection is the first activity of
the HR function. The aim is to select and recruit appropriate candidate capable to
contribute to the growth of the organization. The job specification for manpower
requirement along with approval of Vice President! Executive Director to HR
department showing detailed educational qualifications and experience. The HR head
has to discuss with the indenter to access the nature of requirement like casual,
trainee, temporary, permanent etc and also the sanctioned manpower for the
department. If the requirement is beyond the sanctioned strength indenter has to give a
detailed justification note to HR head with the approval of the appropriate authorities.
To verify the availability of suitable candidate in the company, so that the post can be
filled through transfer and if the available actions to be taken with the consent of Vice
President Executive Director. If the internal candidates are not available, get

29
application form from suitable candidate through reference, advertisement, and local
media or through manpower consultants.All application received to be screened
against qualification, experience etc by the head of the department HR. Screened
candidates to be called for test and interview, selected to be offered appointment in
the specified format in duplicate. Candidates who report for joining duty to be
subjected to medical examination by the company medical officer and medical
examination fitness certificate to be issued. Documents are to be collected at the time
of joining.
Training and development. Training plan will be finalized before 31st of every
year and an estimate amount will be included in the annual budget earmark for HR
department. Training programs are to be organized at three stages for employees.
 Induction training
 General training
 Functional training
Induction training is to be organized for newly joined employees. Functional and
general training are being organized externally for officers and staff on the basis of
annual appraisal and assessment. The HOD’s of each department should assess the
need of the training, service of internal trainer are to be utilized whenever in house
training program which require their specialization and experience are being held.
Performance appraisal. All the HOD’s are responsible for rating the
performance of the officers, for trainee, probationers and permanent staff are on
annual basis. Where ever performance is not up to the required level, the concerned
employee to be informed! Warned in writing. On completion of training period the
trainee to be appraised by the concerned HOD and to be reviewed by VP for placing
him in the probation period. The performance do not improve on the basis of
continuous reviews, the concerned employee to be charged and appropriate decision
regarding the extension of training period further should be taken and if the
management deems the service of employee is to be enquired and other formalities
should be taken as per provision of certified standing orders of company. If the
performance is good, orders are to be issued by HR department placing the employee
in probation period.
Welfare activities.The objective is for organizing employee welfare activities
like redressal of employee grievances, canteen, recreation club, welfare fund,

30
cooperative society, issues of soaps and towels to workers, medical assistance and
sanitation facilities.
Wage and salary administration. The objective of wage and salary
administration is for preparation, verification and disbursement of wages and salaries
for workers, casuals, contract workers, trainees, staff and officers.
Pf administration. The objective is for administration of PF of employees of
EICL as per Provident Fund Act and rules.
Trade unionism. The major trade unions which are organized by the
management are INTUC, CITU, BMS.CITU is the major trade union which has the
maximum membership.
Activities of personnel and administration department are
HRD Functions
Administrative Functions

HRD Functions covers following activities

Selection and Placement of employees

Performance appraisal of trainees/probationers &permanent employees
Induction training
Training needs, assessments and development programmes
Manpower planning
Welfare activities

Administrative Functions covers the following activities

Attendance management
Wage and salary administration
PF administration
ESI scheme administration
Office administration
Security administration
Safety administration

31
 Senior Manager
Personnel

Assistant Junior Security in Senior

Manager Executives charge Supervisor

In- charge
Figure 3
Personnel and administration structure

3.3.2 Commercial department. The commercial department in English

Indian Clay Limited is responsible for the procurement of raw materials, chemicals,
spares and packaging materials, vendor development and procurement of imported
materials. The department consists of purchase and stores sections.
The main function of this department is to procure material of required quantity and
quality at most competitive prices for uninterrupted production and maintenance of
the plant with least possible tie up in inventories and with consistent endeavor to
make it economical. The company aims at achieving customer requirement in quality,
delivery, services, and operating systems, where in each employees is well versed
with the job that he is doing with respect to the quality and services.
Senior Manager Commercial is responsible for giving the approval for
purchase of materials, assessing, rating and finalization of vendor, settling disputes
pertaining to terms of contract and purchase order. Any indents regarding project
purchase are taken care of by the Assistant Manager Purchase. Vendor Development
vests with him. Assistant Manager (store) control the functions performed in the
32
stores section. He is responsible for supplying materials to the user department,
preparation of gate pass for items bought inside or taken out of the company. The
Executive(commercial) is responsible for verification of indents, sending inquires,
obtaining quotations, preparation of comparative statements, renewal of licenses,
clearing the materials, preparation of transport documents and follow up with the
vendor. The executive (stores) responsible for receipt of materials, handling non
conforming items, carry out the work for incoming materials, systematic inspection
and storage of materials, periodical stock verification of stores materials, preparation
of records for sending out and receipt of outward materials, and lay down procedures
for calibration of balance used for measurement related to store activities.
The supervisor in purchase section is responsible for verification of indents, sending,
inquires, obtaining quotations, preparation of comparative statements and obtaining
approval of purchase from Senior Manager Commercial. The Assistant prepares the
purchase orders. Senior Assistant (stores) assists the Executive (stores) in his job and
store at tender’s issue the stored items to the user department as advised to them.
Purchase section. The purchase section has the responsibility of producing
material from suitable vendor. and provides quality goods that will maintain the
quality standards of EICL. The quality purchase depends upon the requirements and
needs of other departments. Purchase section comes into scene when it receives from
stores and other departments for variable items. The industry is then scrutinized to
check whether the specifications are correct. Then their details are entered into the
register. If the items under the rile contrast then the orders are placed with the
respective vendor. If the sourcing takes place within six months of the previous
purchase, repeat orders are placed on the same terms. In all the other case enquires
will be sent to various identified parties. Non-conforming quotations are rejected and
new quotations are invited. In case of emergencies orders are placed without calling
for quotations. Single quotations are accepted in case of original is accepted in case of
original equipment manufacturers or monopoly sources.
Store section. The store section is responsible for storing the materials
properly and issuing them at the correct time when the material is required. It raises
indents when the materials reach re ordering level and need replenishment. The stores
section keeps records such as receipts, registers, indent book, store issue clip etc in the
item are classified into six different groups.

33
Authorized officials of each user departments carry out the inspection of materials
specification and quality. Two staff materials by the stores under the execution
physically from time to time. In the stores materials are kept in separate shelves or
bins. Each bin provides details such as date of manufacture. Expiry date etc written in
tags or stickers attached to the materials. A nine digit code is used to identify the
materials.

SENIOR MANAGER (COMMERCIAL)

PURCHASE STORES

EXECUTIVE (STORE)
JUNIOR EXECUTIVE

SENIOR ASSISTANT

SUPERVISOR

JUNIOR ASSISTANT

JUNIOR ASSISTANT

STORE ATTENDERS

Figure 4
Commercial department structure

34
 Functions. The functions of commercial department are as follows.
Review of stock material indents.
Selection of materials source, obtaining offers, evaluation of offers, negotiation, terms
of purchase, ordering, follow up, receipt, payment, vendor rating and evaluation,
approved suppliers list and new source development.
Market intelligence- continuous interaction with market and collecting data on costs,
demand and product substitution.
Receipt of goods, inspection and their approval.
Proper storage and materials accounting and reconciliation, safety and security, easy
accessibility and identification of the location.
Systematic storage of scrap and periodical disposal.
Physical stock verification and identification of surplus! obsolete item, its disposal
and perpetual inventory system.
Transportation of materials- fixing transporters for transportation of all materials, rate
contract for bulk materials and insurance claim for shortage, damage losses.
Issue of materials to user departments.
Clearance of incoming materials obtaining and renewal of licenses.
Divisions will all departments, effective and timely communication with all
concerned.
Compliance with statutory and audit formalities.
3.3.3 Production department. The production department of English Indian clays
limited is mainly concerned with the mining and processing of china clay. EICL
produces about 1,50,000 tons of china clay and Calcined clays per year which cater to
the needs of paper, paint, fiber, glass, rubber, cable, soaps and detergents and plastic
industries in the country. The plant capacity is 1, 90,000 metric tons per annum and is
the biggest in South East Asia. The mining activity is performed by experts who
ensure that the art equipment grinds the ores to the particles, with high powered
machineries ensuring a product that meets highest quality standards conforming to
international class.
Production planning. The main activity of production planning is to prepare
the production plan. The production planning is based on following factors:

Marketing requirements

35
 Production capacity
 Stock of finished product availability
 Raw material availability
 Finished production shell fire
Plants. Plants refer to the buildings used in connection with the
manufacturing, processing, packaging, labeling and storage of calcined and hydrous
clays. EICL has 4 plants. First 3 plants are at Veli unit fourth plant at Thonakkal. The
entire production process takes place in these plants.
In Plant 1 the product is dried using a rotary drier, which operates at high temperature.
Plant 2 is a spray drier plant which does direct drying. In Plant 2, a spray drier called
Atomizer is used for obtaining products in the granular form. Both the plant is used
for producing hydrous clay. Plant 3 has been shutdown and the plant 4 at Thonakkal is
used for the production of calcined clay.
Production process. The various processes involved in the production of
hydrous and calcined clays at EICL are:
Mining. The raw material is extracted from the bottom portion of the earth using
excavators.
Matrix analysis. It mainly deals with analyzing and grading the clay matrix based on
color. Generally the matrix is found in 3 colors - white, grey and pink. White clay
indicates clay in pure form, grey clay indicated the presence of graphite and pink
color indicates the presence of iron (Ferric) content. This is done with the help of
process control lab which decides the blend of grades that go into the production
process according to customer requirements.
Matrix blending. The different grades of clay matrix are appropriate proportions as
per process control lab to obtain raw materials of desired characteristics according to
customer requirements.
Blunger requirements. Here water is added with the raw material (clay matrix) to form
the slurry. The clay matrix in bulk form is fed to the machine called Blunger with
addition of water to form the required amount of slurry.

Classification.It is the process of separating the higher grid particles from the slurry.
Through this process 25 to 39% of and gets removed.

Hydro cyclone Process. This is a two stage process. In the first stage the slurry after
classification is passed to “14” hydro cyclone where there is primary vortex formation

36
by which the residue moves downward to the nozzle and the secondary vortex moves
the product upwards and the second stage it is passed to “3” hydro cyclone where the
remaining sands gets removed. The first stage removes the heavier sand particles, and
the second stage removes smaller grid particles.

Bleaching.Bleaching agent used is Hydrosuiphate bleaching of clay removes iron

impurities and allows clay to be bleached to perfect whiteness. Sodium hydrosulphate
transforms trivalent iron to bivalent which, on subsequent acid treatment (by adding
sulphuric acid which reduces the pH value to 2.5), dissolves and removes iron from
the clay. To neutralize the acidic content of the slurry and to prevent from revamping,
carbonate and soda ash is added to the slurry and the bleached slurry is then collected
in a holding tank. Having refined the clay, it is moved on to the final process i.e.
drying.

Drying.Drying refers to converting the slurry which contains 65% water into final
products in the form of solid (Lumps and powder) through the following operations.

Screening.The bleached slurry (containing 12% salts) is subject to screening through

which graphite and other foreign materials are screened off ant the pumped and
passed through a filter cloth.

Filter Pressing.Here, a hydraulic filter press is used to drain off the excess water. On
passing through the cloth, the slurry gets converted to cake form with 65% salts and
35% water. The cake is collected and it is sliced using a cutter.
Here on, the drying process varies depending on the plant in which it is carried out.
Plant 1 make use of indirect drying through a rotary drier and plant 2 does direct
drying by means of a spray drier.

The different operations at plant 1 are mentioned below:

Paddle mixing operation. The sliced clay are mixed with 12% dry powder in
paddle mixer which converts the moisture content to 22% and put in the rotary
drier.
Rotary Drying operation. The drier runs on fuel, hot air is passed through it and to
this 12% dry powder is added. It turns to lump form containing around 12%
moisture. The lumped product is sent to the lump silo from where it is either sent
to packaging section or it is send to attritor mill where the lumps are milled to
powder form with 2% moisture and then sent to silos for packaging.

37
The different operation at plant 2 is mentioned below:
Kneading Operation. At Plant 2, the sliced clay cakes (containing 65% salts) are
mixed with chemicals (dispersal agent) like accumer or calgon to convert it to
slurry form. This process is known as kneading.
Atomization. The slurry is then stored in storage viscosity tank. It is then passed
to the spray drier called atomizer with the help of a feed pump where hot air is
passed through the slurry which is kept in a closed chamber.
The product obtained in powder form contains only about 2% moisture,
which is then send to silos for packing.
Packaging. The product stored in silos is send to either jumbo (1 ton bag)
bagging or 50kg bagging machine and dispatched.

The operations at plant 4 are mentioned below:

At plant 4, which is a calciner plant where the moisture content from clay is
removed by adding chemicals to get calcined clay. The powdered product from the
attrition in the first plant or spray dried powder in the second plant is sent to the
calciner where the moisture is removed and thensent to silos for packing. The calcite
produced is of high value.

Logistics. The major Indian Arabian Sea port of Cochin is only 220 kms from our
works. Regular connections to all the major ports in the world are available from
Cochin. A new Port at Tuticorin, managed by Singapore Port Authority has come up
in a major way to the East in Bay of Bengal. This Port is 200 kms from their works
and major shipping lines have started calling here. These two Ports together ensure
minimum lead time for their cargo to be shipped out of India to destinations all over
the world. For domestic cargo, EICL offers movement of material by coastal route as
well as CONCOR rail in addition to the direct truck option.
Type of layout. A layout essentially refers to the arranging and grouping of machines
which are meant to produce goods. The type of layout followed in EICL is process
layout. It involves grouping together of like machines in one department. The process
arrangement is signified by the grouping together of like machines based upon their
operational characteristics.
Advantages of process layout are
 Reduced investment on machines as they are general purpose machines
 Greater flexibility in production.

38
 Better utilization of men and material
 Greater scope of expansion as the capacity of different lines can be easily increase

Figure 5
Production Department structure

3.3.4 Marketing department. Marketing is performance of business activities that

direct the flow of goods and services from the producer to the customer. It is a system
of interacting business activities designed to plan, promote and service to existing and
potential customers. The main function of marketing is to view the customer as the
very purpose of the business. It emphasizes on identification of a market opportunity
and fulfilling the needs of the customers. Without marketing there is no consumer and
without the customer there is no use for the product or service the company is
producingThe company’s other departments in developing, producing, fulfilling, and

39
servicing products the marketing department at English Indian Clay Limited acts as a
guide and lead the and services for their customers. Communication is vital and the
marketing department typically has a better understanding of the market and customer
needs. The goals and guidelines set by the marketing department are in line with the
vision and the mission of the company. The upper management is also involved in
and endorses cooperation by all departments in following and implementing the plan
and integrating a consistent message into all communication channels.
Over the last 10 years, EICL products have established themselves in the international
market. With Hydrous and Calcined clays of quality comparable with the best grades
available in the world, EICL products offer distinct techno-commercial advantage
in Africa, South East Asia, and Far East and Middle-East markets due to its
geographical location. The location is selected based on auction freight advantage
countries. They will have agents and they will do the marketing part. These agents
will have regular touch with the customers asking them about the quality of the
product. The main products in international marketing are paint, rubber, insulators,
ready mix concrete, rubber etc.
EICL goes n for Industrial marketing, as its product (kaolin) is used as raw material
by other industries such as paint, paper, rubber and ceramics.
The company also has its own export division in the marketing department. It exports
products about 18 countries some of which include UAE, Philippines, Mauritius,
Oman, Yemen and South Africa with hydrous and calcined clay of quality
comparable with the best grades available in the world.
The functions of marketing department are as follows:
 Identify prospective customers.
 Conduct market survey and market research
 Source orders and execute them as per delivery schedules agreed upon.
 Service the existing customer servicing involves:
o Meeting customers schedules on time.
o Keeping track of customers stores and purchase department
 Provide application support to customers in coordination with English Indian
Clay Limited Research and Development center and Quality Control
department.

40
  Attend customer complaints and take preventive action against recurrence of
similar complaints.
 Motto of the department is to provide products of right quality and quantity at the
right time and at right place.

MARKETING MANAGER

ASSISTANT MANAGER ASSISTANT MANAGER

INDUSTRIAL RELATIONS SALES

OFFICER LOGISTICS

EXECUTIVES EXECUTIVES

Figure 6
Marketing Department

41
New product development. EICL develop new products based on the customer’s
requirement and their expected quality. For this there will be constant interaction with
the customers, commercial and technical department. Research and development
department is responsible for making new product and grades to the market. Now
EICL has a focus on import substitution, the customers can import some other
products which EICL is not producing from some other place. They can collect the
samples of that product and replicate the product, so that the customers can buy it if
meet their specifications.

Marketing mix of EICL is as follows.

 Product.Marketing department ensures that the product is one of the same graded
as specified by the customers and meets the quality standards. Currently 35
grades of clay are available, each with 2 main specifications- brightness and
fineness. The right quality clay should contain 78- 88% brightness and fineness
content from 60-100%.
 Price.The prices are based on pricing policies taken by the company, based on the
market conditions. The pricing decisions are taken by the marketing department
after studying the market conditions and also comparing the competitor’s price.
 Promotion.It deals with advertising and sales promotion for the product. Since the
company goes for industrial marketing department, concentrates on direct
marketing as a means of promotion which enjoys the advantage of two way
communication. EICL has marketing offices in Mumbai and Delhi and has
marketing agents in Mauritius, South Africa. Yemen, Sri Lanka, Philippines,
Jordan and New Zealand.
 Packaging.Packaging is done in laminated High Density Poly Ethylene (HDPE)
bags. EICL products are generally packed in 50 kg, or 1000 kg (Jumbo bags),
they are also packed in 25 kg bags 1as per the requirements of the customers. The
75 kg bags are used to pack the product in the form of lumps.
 Place.In this clay industry the place is not that much important. The production
plant is set up in Trivandrum and Thonakkal.

Sales force management.The sales force management will meet the customer’s
requirements on time and good customer relations are being maintained. They will
also provide the customer with right information in right time.

42
 Marketing research. Marketing research is the systematic design, collection,
analysis and reporting of data and findings relevant to a specific marketing situation
facing the company. At EICL, the HOD of marketing department also maintains a
good marketing information system. It uses internet for collecting information,
interacting with customers etc. The department goes in for product analysis and
competition analysis, product analysis is required to find out customer’s preferences
for the product. Competition analysis is done to study the recent or proposed
production, sales and pricing policies of the competitors.
Competitors. EICL, being the largest producer of china clays in India, has a
very few competitors. The monthly production of EICL (16000 tons) is higher than
the annual production of the companies in the same sector. Hence competitors are not
a threat to EICL. Some of its competitors are :
 Kerala Ceramics, Quilon
 2o Microns
3.3.5 Finance department. The finance and accounts department is
responsible for the financial functions and activities of the company and for the
administration of the company’s fiscal policy. The main activities includes
preparation, monitoring the income and expenditure, MIS reporting, audit, tax
administration, updating the shareholders on the financial health of the company,
maintaining accounting records, preparation of financial statements, ledger
administration etc.
In English Indian Clay Limited Senior manager is the head of the department and
authorized signatory of the unit. He is responsible for the consolidation functions and
the executives (Accounts) and senior manager are responsible for balance sheet
preparation. The executive (Accounts) also participates in audits, prepares statements
related to MIS reporting, and handles taxation matters and accounting. Senior
supervisor and Junior supervisor are responsible for accounting and returns
preparation. The cashier receives and disburses funds, records monetary transaction
issue of receipts, balance records, transfer funds and prepares cash receipts.
Costing Practices.There will be a bill of materials (BOM) in which the
materials required for the production and there amount will be there. By calculating
the amount of those raw materials we can find the price of finished goods. The

43
moving average price will be entered in the system automatically. The price will also
include the routing charge. i.e. via which all machines the product has passed.
Functions of the finance department are as follows.
 Budget preparation and Administration
 Accounting
 Audit
 MIS Reporting
 Administration of taxes
 Financial concurrence and advice
 Compilation of Codes, Rules and procedures concerning financial transactions and
having bearing on their implementation
 General accounting records
 Cash flows
 Investments
 Cost allocation
 Internal and External financial reports
 Control of expenditure
 Statutory reports and tax reports
Budgeting. Individual budgets are prepared by concerned departments and
master budget is prepared by finance department. Budget is normally prepared 3
months in advance and has to be approved by the chairman.
Auditing. Both internal audit and statutory audit is conducted, internal audit is
done once in 6 months by M/s Walker, Chandiok& Co., Chartered Accountants.
MIS (Management Information System). EICL has installed MIS for better operation.
It is maintained by the finance department, it is prepared on the second of every
month. This includes various financial statements like profitability statements, cost
sheets, profitability statements like power trend, debtor’s age wise analysis, cash flow
and fund flow statements and ratio analysis.
Accounting. EICL has in-house accounting software and has standardized on
clipper as their developments platform. The database used is FoxPro.
Financial department maintains separate ledgers for the plants in EICL. The ledger for
first plant is known as manufacturing ledger, this includes office expense and normal
administrative expenses. Ledger for the second plant is known as spray drier ledger,

44
ledger for the third plant is known as calciner ledger. A separate ledger is maintained
for R&D department, the total control of all these rests in the general ledger.

Figure 7
Finance Department

45
 3.3.6 Financial Analysis
Ratio analysis is one of the most used techniques of financial analysis. Financial ratios
help to find out a firm’s performance and financial situation. Most ratios can be
calculated from information provided by the financial statements. Financial ratios can
be used to analyze trends and to compare the firm’s financials to those of other firms.
For the financial analysis of EICL, data from the following financial statements of the
company has been utilized :
 Balance sheet
 Profit and loss account
 Cash flow statement
Ratio analysis is used as a tool for analyzing and interpreting the financial statement
of EICL. Its financial performance is studied through the calculation of different
financial ratios such as liquidity, profitability and solvency ratios. Financial ratios can
be classified according to the information they provide, the following types of ratios
are frequently used:
 Liquidity ratio
 Leverage ratio
 Activity ratio
 Profitability ratio
Comparitive ratio analysis helps to determine a company’s strength and weakness,
evaluate its financial position and understand the risks.

46
Table 11
Ratio Analysis

2009- 2010- 2011- 2012- 2013-

Particulars 10 11 12 13 14

Earnings per share(Basic)=(A)/(B) 58.63 5.28 2.19 1.60 2.43

Net profit ratio=( C )/(D) 0.09 0.09 0.04 0.03 0.03

Fixed assets turnover ratio=(D)/( E ) 1.59 1.50 1.50 1.67 1.87

Current ratio=(F)/(G) 2.49 2.73 0.87 0.87 0.91

Interest coverage ratio=(H)/(I) 4.27 4.50 2.31 2.10 2.43

Earnings per share(Diluted) 43.11 5.23 2.19 1.60 2.43

Note: The data is as furnished by the finance department officials during the
study.

47
 Table 12
Workings

Particulars 2009-10 2010-11 2011-12 2012-13 2013-14

Profit for the
year(A)
261,998,652 265,488,092 110,014,279 80,195,424 122,383,166
No: of shares
outstanding(B)
4,468,979 50,276,013 50,276,013 50,276,013 50,276,013
Net profit after
tax
(C)
294,101,567 303,905,248 148,367,704 118,676,312 160,991,516
Net revenue
from
operations
(D)
3,364,611,444 3,552,381,101 3,780,852,048 4,215,129,055 4,627,970,785

Fixed assets
(E) 2,113,285,199 2,360,840,282 2,521,242,076 2,517,139,009 2,481,106,614

Current
assets(F) 884,861,855 1,067,805,335 1,128,575,202 1,114,879,101 1,206,765,338

Current
liabilities(G) 354,871,681 391,419,375 1,290,739,682 1,276,279,859 1,330,354,773

Earnings
before interest
and tax(H) 580,949,134 583,582,656 432,644,980 404,470,317 419,449,525

Finance
costs(I) 135,924,744 129,778,256 187,342,948 192,981,259 172,894,354

Note: The data is as furnished by the finance department officials during the
study.

48
Figure 8
Ratio analysis
Note: The graph has been made from the data obtained from finance
department.

During the year 2009-2010 the company witnessed sustained recovery from the global
economic recession and the overall performance of the company was impacted
positively. The Company registered a sales growth of 18% with a turnover of Rs.343
Crores as against Rs.290 Crores in the previous year.
Sources of funds. The sources of funds for EICL are :
 Paid-up capital

49
 Share capital
 Reserves and Surplus
 Secured loan
 Un-secured loan
3.3.6 Research and Development department. English Indian Clay Limited has a
well equipped Research and Development center that is approved by the department
of Science and technology. It was started in 1992 with a view to provide technical
advice to the customers and to offer technical assistance including testing services to
other departments of EICL. Its in-house research and development unit is known for
stringent quality control and developing suitable products as per the customer’s
requirement.
The company has a regular samples of various minerals taken at various stages of the
production process to analyze complete mineralogical and chemical composition by
their competent team of R&D experts, enabling them to not only recommending right
products to the customers but also to develop customized minerals if required.
The department has close relations with the national laboratories and the research
wings of major customers. Hence it is able to draw upon the expertise of these
esteemed organizations bringing out innovative products and finding new applications
for the existing products. The R&D department also equipped a library which has a
collection of books, journals, magazines, records and other literary documents
pertaining to the industry and standard test procedures to increase the efficiency of the
company.
Functions of the finance department are
 Provide technical support to improve the quality of specialty hydrous clays for the
paint industry.
 Provide technical assistance for identifying and providing suitable blend of raw
matrix.
 Introduced a cheaper process chemical to reduce the production cost.
Application support. EICL has well equipped application laboratory in
Trivandrum. This laboratory is under the control of R&D department. The different
kinds are labs available with R&D are paper, rubber, cement and ceramics labs, it is
used to meet the changing requirements. The lab has paint, rubber, cement and

50
ceramic industry specialists, supported by most modern equipments, who constantly
thrive for offering proactive solutions to the respective industries.

GENERAL

EXECUTIVES

STAFFS

STENO

Figure 9
Research and Development Department structure
The areas in which R&D carried out are:
 Studies in pulverization.
 Establish grain size parameters for calcined clay products.
 Physical- chemical characterization and evaluation of trade deposits in new areas.
 Surface modification of Calcined clay products.
 Developing clay as an ingredient of adhesive and inks.
 Decoding the code name of clay products so as to study the structure of Calcined
clay and then develop it.
3.3.7 Quality Control department. Quality Control refers to those activities which
ensure that the manufacturing process produces quality perfect products. It is
responsible for ensuring the quality of products as per the specified standards and the
resulting product will perform is intended function. English Indian Clay Limited
being an ISO certified company, its quality standard has to be maintained. The
Quality control department tries to improve the quality of the product according to the
specifications given by the customer. The Quality control department takes samples
from the plants every hour to check the following properties:
 Quality
 Density

51
 Grit
 Ph
 Moisture
 Viscosity etc
Quality policy.EICL is committed to processing and supply of value added
Hydrous and Calcined clay; meeting customer requirements of quality, delivery and
application support through continual improvement of the effectiveness of its quality
management system. Some of the important operations performed by quality control
department in EICL are:
 Magnetic Separation: It is the process of separating impurities (iron particles)
from the product.
 Paint Matching: It is used to check the brightness of the product as per the
customer specifications.
 The Quality control department in EICL assures quality of its products till it
reaches the hands of the customer. This adds to the company’s reputation and
goodwill.
The major functions of Quality control department are :
 Raw material testing-checks the standard and quality of raw materials (clay) from
mines and on its delivery.
 Process testing- assures proper processes in the production of raw materials.
 Intermediate testing- hourly testing to ensure the quality of the product at each
stage.
 Product testing- checks the quality of the finished produced also great care is
taken to maintain quality during packing and dispatching. Quality of finished
product is measures by taking 50g as sample from every 20 bags.
Social responsibility. The company spends around 30 lakhs for their social
activities annually. EICL provides water supply for local people surrounding the
company area. About 800 taps were provided and the project cost was around 20
lakhs. The rainwater harvesting scheme is working efficiently and the water stored in
the reservoir is shared with surrounding villages. The company conducts medical
camps for the villages around various mines and factories. The company sponsors
education for 50 students and also several activities are done for women
empowerment too.

52
 GENERAL MANAGER

MANAGER QUALITY CONTROL

EXECUTIVES

STAFF

Figure 10
Quality Control department

Pollution control measures. A full-fledged environment management cell is

setup to for regular monitoring and operation of the Effluent Treatment Plant, regular
monitoring of air pollution control equipments, proper disposal of solid waste
generated, maintenance of green belt and rain water harvesting system. Roof top rain
water harvesting system will be implemented to harvest rain water. The Water will
be filtered and collected in raw water storage tank. The water will be subsequently
used in the process.
Safety measures. The personal protection equipments provided to the
workers are helmet, gum boots, ear plug, mask, goggles, safety belt and gloves. Safety
requirements include things like working smoke alarms in each unit and throughout
common areas, door frames with approved hardware, properly pressurized fire
extinguishers, working fire hydrants and sprinkler systems and working emergency
and exit lighting systems.
Recreation. The company conducts several programs for recreation and
improving workers formal and informal relationships. Canteens and reading rooms
are provided inside the company. There are 3 clubs, for employers, officers and for
the staffs. Tours are conducted once in every year for each clubs. Also family get-

53
together functions are arranged for all 3 clubs together and it is called family day. On
such occasions, sports and games are conducted and cash award of 1000 Rs is
provided for employer’s children for their Excellency in studies.
Swot analysis. The overall evaluation of the company, strengths, weakness,
opportunities and threat is called SWOT analysis. It is a structured planning method
used to evaluate the strengths, weaknesses, opportunities, and threats involved in
a project or in a business venture. A SWOT analysis can be carried out for a product,
place, industry or person. It involves specifying the objective of the business venture
or project and identifying the internal and external factors that are favorable and
unfavorable to achieve that objective. Strength is what an organization can do.
Weakness is what an organization cannot do. Opportunities are the potential
favorable conditions for an organization. Threats are the potential unfavorable
conditions in the organization.

Strength. EICL is a company which is having an experienced and long term

serviced management and employees. It has a stable and concrete fund flow. There
are well qualified and technically skilled manpower. The reputation of the company is
very high. EICL manufactures products that are of Superior quality. EICL is well
equipped with Research and Development facilities centre recognized by the
department of Science and Technology, Government of India. The company owns
clay- bearing land near Thiruvananthapuram taking care of the company for the next
25 years. It manufactures varieties of superior grade China Clay for diversified
applications. It has a built a market leadership position.

Weakness. The company is running at full capacity and company doesn’t follow a
proper replacement policy for its machinery. The presence of trade unions in the
company is very strong. Vehicles for transportation are on contract basis. Company
website has little information regarding the various functional areas and departments.
Susceptible political events. It Depend on non-renewable resources

Opportunity .Clay industry is one of the fastest growing industries in the world with
new products which offers new opportunities and new markets. Rich source of clay is
available. There is adequate support from government of Kerala and from other
agencies. Competitors are very few. They Build loyalty by identifying regular
54
shoppers and offer benefits to them. Attract the customers by providing R & D
support and new product development. Having gained a foothold in the international
market, EICL products offer techno commercial advantage due to its geographical
location. They can concentrate on global markets. Export potential of the company is
high and can raise market share by technological innovations. So there will be rising
of new firms in paint, paper and rubber industry Diversification can be made in the
chemical industry.
Threats. The main threats are the changes in the value of rupees and other currency
changes, Rise of fuel price, a delay in supply of critical equipment’s required for the
project may delay the implementation of the project, the presence of a tourist village
in close proximity to the company may raise environmental concerns, There will be a
Possibility of encroachment by railway authorities The .Emergence of new companies
may lead to competition in the long run. Another threat is the Seasonal threats in
mining process

55
 CHAPTER-4
OBSERVATIONS AND CONCLUSION
 4 OBSERVATIONS AND CONCLUSIONS
4.1 Observation
EICL is public limited company. The company is the leading producers in their
respective field and doesn’t even have a healthy competitor. The company has a
market share of 80% which is very high. The competitive advantages of this company
are its quality of clay available and large volume of production. Their biggest and
regular customer is Asian paints. They usually buy 6000 tons of clay from EICL. No
other company in India can provide such a large quantity. This makes their top
position in the market more secure and strong.
There are several key resources responsible for the success of EICL. Good
management team is the first thing that comes to mind among them. A management
team lead by Mr. D Kohli during 1991-2010 had huge impact on the company’s
growth which his being continued even after his retirement. This shows the capability
and experience of the work force available at EICL. EICL also has a well developed
R&D setup which is another key feature. Also the location makes it easier for them to
transport products and raw materials to any part of the world since the 2 main ports,
Tuticorin and Cochin ports are just 200km away from them.
4.1.2 Suggestions
New area in the application of china clay can be found out.A proper inventory
management techniques should be evolved.Company websites has very little
information about the various functional area and departments.Company should keep
a check on the number of trade unions on a long run.The company should give due
care to environmental issues.

4.2 Conclusion
The’ study has covered “The English Indian Clays Ltd”, (EICL) Thiruvananthapuram
functions, its organization structure, and the various departments of EICL,
manufacturing of china clay, its marketing activities and quality control techniques
adopted promotional aspects and other related management activities. EICL gives
maximum benefits to the ceramic, glass and paper manufactures and at the same time
provides high quality value added products to the customers. EICL is committed to
setting high quality standards and maintaining them. The clay industries are very
important in providing needed employment in many areas with its rich reserves, high

56
technology, vast experience of its motivated employees and deep commitment to
quality. EICL is all set to take a place of pride in the twenty first century as the
preferred source for the best companies in the business.

56
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English Indian Clays, (1963).Annual Reports, India. Retrieved from

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Ramaswamy V. S, R Namakumari.(2009).Marketing Management, 4th Edition. New

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Securities and Exchange Board of India, (1992) EICL Draft, India. Retrieved from

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BSE Investors’ Protection Fund, (1990).company background, Mumbai. Retrieved

from http://www.bseindia.com

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