Kmml project 2

AN ORGANIZATIONAL STUDY ON
KERALA MINERALS AND METALS
LIMITED, CHAVARA

Submitted in partial fulfillment
of the requirement for the award
of the Degree of

Master of Business Administration
of Mahatma Gandhi University, Kottayam, Kerala

Submitted by
JIJO THOMAS
ENTROLLMENT NO :
COURSE CODE : CC21

Under the guidance of
Mr.Jayan

BSS INFORMATION TECHNOLOGY MISSION
THYCAUD
MG UNIVERSITY OFF CAMPUS ACADEMIC CENTRE

ACKNOWLEDGEMENT

First of all I thank Almighty God who has been with me throughout
this endeavour and helped me in completing this project successfully.

I have great pleasure in expressing my sincere and grateful thanks to
my internal guide Mr. John for continuous guidance throughout this project.

I owe my sincere and grateful thanks to the external guide of KMML,
Chavara, Mr. Kochoommen (Asst. Personal Officer) for guiding me to this
project work.

Last but not the least I thank all my faculty members, all employees
and managers of KMML, my parents and my friends who have been a source
of inspiration and also helped me throughout this project.

Jijo Thomas

DECLARATION

I, Jijo Thomas hereby declare that the project work entitled An
Organisation Study at Kerala Minerals and Metals Ltd. is a record of
original work done by me under the guidance of Internal Guide, Mr.
Sasikumar. I also confirm that this project study has not been submitted
before.

CERTIFICATION

This is to certify that Mr. Jijo Thomas, Register No………….….. has
undertaken an organizational study on Kerala Minerals and Metals Limited,
Chavara and this report is the result of original work done by the candidate.

This project report is partial fulfilment of the requirements for the
award of the Degree of Master of Business Administration (M.B.A.) from the
Mahatma Gandhi University, Kottayam.

Signed by Counter Signed by

Project Guide Counter Coordinator

LIST OF CONTENTS

Sl.No. Title Page No.
1. Introduction to the study
2. Aim, Objective of the Study
3. Methodology
4. Scope of the Study
5. Limitations of the Study
6. Industry Profile
7. Certifications
8. KMML Layout
9. Company Profile
10. Product Profile
11. Vision, Mission, Objectives
12. Organization Structure
13. Functional Departments

Personnel and Administration Department
Marketing Department
Finance Department
Production Department
Maintenance Department
Materials Department
Data Processing Department
Fire and Safety Department
Technical Department
Research and Development Department
Project

14. SWOT Analysis
15. Findings
16. Conclusion
17. Bibliography
18. Appendix

LIST OF CHARTS AND FIGURES

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

2. Organization Chart of Personnel Department

3. Organization Chart of Marketing Department

4. Organization Chart of Finance Department

5. Profit & Loss Account

6. Balance Sheet

7. Organization chart of production Department

8. Basic Processing Steps

9. Organization Chart of Maintenance Department

10. Organization Chart of materials Department

11. Organization Chart of data processing department

12. Organization Chart of fire and safety Department

13. Organization Chart of technical Department

14. Organization Chart of Research & Development

15. Organization Chart of project Department

AN INTRODUCTION TO THE STUDY

Organizations play major role all over the world different organization
meet people needs and provides them with product, service, or both. Due to
globalization, the world has become a global village. This has very much helped
people to get their needs. Different firm play different role and has its own
importance. For my study, I have chosen Kerala Minerals And Metals Limited. It
is a well-reputed company fully owned by the State Government of Kerala.

The Company has indulged in the manufacturing of world class Titanium
Dioxide. It has been ranked among the top ten competitions in the world
producing its own product. In this study, I will be covering the organization as a
whole briefly. Hope I succeed and fulfill the study that I began with.

KMML is a world class producer of mineral sand based value added
products. In India, KMML is the only producer and distributor of rutile grade
Ti02. The company enjoys monopoly and faces no competition in India. But in
foreign markets, the company faces competition from a number of companies.

AIM OF THE STUDY

Our 30 days organization study is aimed to get an industrial exposure and to
understand the functioning of the organization in real life. It is intended to help
students to link the corporate management practices in an organization with the
theory

OBJECTIVES OF THE STUDY

1) To acquire knowledge about the company has learnt.

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

3) To brief study of KMML.

4) To get the practical knowledge of KMML.

5) To analyze the functional position of KMML.

METHODOLOGY

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

1) The first step is the collection of all available information from various
primary and secondary data sources. Collecting information from
manuals, reports, articles etc, which were provided by KMML
regarding the origin, facilities available in the company and a brief on
its activities and functions.

2) Interviewing departmental heads and other staff for understanding the
activities of each department, structure and the roles played by each of
them.

3) Visiting the operational sites of various departments. The main aim is
to obtain a physical feel of the departments and observe the activities
performed by it, and it's important to the whole organization.

That is the study has been conducted using primary and secondary data.
The data were collected with the help of questionnaire; interview and observation.

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

1) Primary sources of data collection

1) Secondary sources of data collection

Primary data collections are

• Observation

• Personal interview

Secondary data are collected from

• Company brochure

• Company’s website

• Business Magazines

SCOPE OF THE STUDY

For the organizational study I have chosen Kerala Minerals and Metals
Limited, It is a well-reputed public sector undertaking in Kerala State. In this
study, I will be covering the organization as whole briefly. From the
organizational study it has provided the first hand knowledge regarding the
functioning of KMML and gets more knowledge about its Marketing, Financing
and all over the functional areas of the organization. The organizational study
program has been highly beneficial to me. Through this study
"

1) The student shall get familiarized with the structure, systems, procedure
and functioning of an organization.

2) The student shall encounter practical situations which require immediate
solutions by relating numerous theories and concepts into practice.

3) Students can come with unbiased and impartial suggestions and
recommendations.

LIMITATIONS OF THE STUDY

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

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

3) The manager's time availability for discussion were limited and frequently
interrupted due to official commitments.

INDUSTRY PROFILE

The world is rapidly shrinking with the advent of communication,
transportation and financial flows product development in one Industry are
finding enthusiastic acceptance in other industry. As the Industry, which is
manufacturing Industry, product definitely depends on the end user Industries.

Industry plays a significant sole in every firm. Industrial development has
been given on greater importance in Indian planning on account of Industrial
development. Industry is necessary in productivity, employment, national Income
and rate of capital formation in India witnessed large scale diversification India.

Now India occupies tenth place among the industrially developed countries
in the world.

TITANIUM DIOXIDE INDUSTRY IN INDIA

The Indian reserves of illmenite and rutile is expected to the around 60
million tones. The most important sources of illmenite in India are beach sands of
south. Maharashtra, Orissa, Tamilnadu and in Kerala is around 45 million tones.
There are about 20 million tones reserves in Orissa.

This information threw light in to the possibilities of new manufactures and
competitions in Titanium Dioxide pigment Industry in the Indian Market with the
increasing demand for the paints, rubber, plastic and printing inks etc. The arrival
of new manufactures will be more in the near future. This will ultimately results in
tight competition.

CERTIFICATIONS OF KMML
1) ISO 9001:2000

Certificate from Bureau Veritas Quality International (BVQI)

and holes certification of United Kingdom Accreditations Service (UKAS). The
United Kingdom Accreditation Service is the sole national accreditation body
recognized by government to assess, against internationally agreed standards of an
organizations that provide certification for testing, inspection and calibration
services.

and accredits certification from ANSI-ASQ National Accreditation Board
(ANAB) is the U.S. accreditation body for management systems, ANAB is a
member of the International Accreditation Forum and a signatory of the IAF
Multilateral Cooperative Arrangements (MCA) , ANAB ensuring accredited
certificates which are recognized nationally and internationally for good quality
management system.

2) ISO 14001:2004


and accredits certification of National Accreditation Board for Certification
Bodies (NABCB). NABCB is a member of International Accreditation Forum
(IAF) having Multilateral Recognition Arrangement (MLA) to certify ISO 14001
- Environmental Management System.

and holes certification of United Kingdom Accreditations Service (UKAS). The
United Kingdom Accreditation Service is the sole national accreditation body
recognized by government to assess, against internationally agreed standards of an
organizations that provide certification for testing, inspection and calibration
services.

3) OHSAS 18001:1999


The Occupational Health and Safety Assessment Series (OHSAS) specification
gives requirements for an occupational health and safety (OH&S) management
system, to enable an organization to control its OH&S risks and improve its
performance.

National and International awards conferred on KMML

 National award for R & D efforts industry for the best research and
development efforts by department of Science and Technology(1992)

 FACT MKK NAIR Memorial productivity Award 1993-94,94-95 for the
best productivity performance by Kerala State Productivity Council

 Energy Conservation Award 1999in appreciation for outstanding
achievements towards energy conservation and management in the
category of large scale industries

 FACT MKK NAIR Memorial productivity Award 2001-02 for second in
productivity performance by Kerala State Productivity Council 2001

 FACT MKK NAIR memorial productivity Award 1999-2000,2000-01 for
first in productivity performance(Large Organization) by Kerala State
Productivity Council

 Energy Conservation Award 2001 for conservation and management in the
category of large scale industries by Energy management centre Kerala
2001

 Award for Revenue performance 2003 for the best performance by central
excise, customs Kollam Division 2003

 Marketing campaign Award 2003 for best marketing campaign by Asia
pacific coating 2003

 International gold medal for the Quality of the product and efficiency of
the company by Forum Kerala Lumpur Global Rating UK 2003

 Special Export Award for export performance by chemicals and Allied
Export Promotion Council (CAPEXIL) sponsored by ministry of
Commerce Government of India 2002-03

EMPLOYEE STRENGTH

There are about 210 officers and 1122 workmen in KMML. The total
strength is 1332.

FUTURE PLAN

The company is studying the possibility of the productivity of more
economic titanium metal sheets. Recently, researchers established that the
Aeronautic Industry could use Titanium metal instead of Aluminium alloy or
Duraluminium coverings. The company is in the process of expansion and the
target expected is approximately as shown be1ow:

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

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

3. A new 100 tones per day Oxygen Plant

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

POLLUTION CONTROL

KMML has elaborate Pollution Control system with respect to both water and
air pollution. The waste (acid) from illmenite Beneficiation Plant are sent to
Effluent Neutralization Plant (ENP). ENP consist of a Primary Neutralization
Tank (PNT) and Secondary Neutralization Tank (SNT) where it is treated with
caustic soda solution. The totally neutralized slurry from the SNT is pumped to

50000m3 capacity setting pond provided with impervious clay, polythene lining at
bottom side where the solids are settled. The dye solution from setting pond of
25000m3 capacity where the balance solids are allowed to settle. Then clean
water from the polishing pond meeting all specification stipulated by Pollution
Control Board authorities is pumped in to the Arabian Sea.

All gases from Chlorination, Oxidation, Illmenite Beneficiation Plant and
Acid Regeneration Plant are passed through scrubbed water or caustic solution to
absorb the toxic gases diluted with enough fresh air and only let out to the
atmosphere through tall slacks.

KMML
Plant Lay Out

NH. 47

Administrative Block Plants

FINANCE DEPARTMENT SUBSTATION CANTEEN

MARKETING DEPARTMENT
OXYGEN PLANT

PERSONAL DEPARTMENT
PPP UNIT PPP UNIT

100/200 400/500
MATERIAL DEPARTMENT

PPP UNIT PPP UNIT

ARP IBP 300 400/500

EMERGENCY BLOCK
MAINTENANCE SHOP

ERS IRS
RAW ILLMENITE GODOWN

CENTRAL MECHANICAL
REPAIR BLOCK
STORE

AIR
COMPRESSING
LAB BLOCK

COAL BOILER
YARD PLANT

COMPANY PROFILE

Kerala is blessed with rich and extensive mineral deposits. This deposits
stretch along the sea cost between Neendakara and Kayamkulam, a track
generally known as Chavara coast. This deposits stretch up to a distance of 18 Km
along the coastal strip and having a depth of 8m. The dark sands of Travancore
coast are rich in mineral deposits as Monazite, I1lmenite, Rutile, Zircon etc.

The company is located at Sankaramangalam near Chavara, Kollam a
coastal town 85 km north of Thiruvananthapuram. KMML is situated on the side
of NH-47 to about 285 acres in area. KMML has a worldwide reputation, a
socially responsible company with an eco-friendly image. The company derived
strength from its dedicated manpower and customer organization. KMML is fully
owned Kerala Government Enterprise. There are about 2000 employees in the
company at present that helps KMML to grow.

History of KMML

In the earliest periods of 19th century, precisely in 1909 a German
scientist named Mr. Schaumberg happened to discover traces of I1lmanite and
monazite in the black beach sands of Chavara coast in the Kerala state of India.
Schaumberg who was then working for an English firm got the sand exported to
England. At that time there was great demand for monazite because of its wide
application in the mantle making of gas lights. Continued efforts of German led to
the discovery of other minerals such as Rutile, Zircon, Silmanite etc in large
volume in the sand of Chavara coast between Neendakara and Kayamkulam.. The
discovery of monazite was quite accidental. Eventhough the German laid
foundation for a mineral separation plant at Chavara its activities were curtained

by World War 2.

The first full fledged mineral separation plant in Chavara was established
by a private entrepreneur in 1932 as F. X. Pereira and Sons (Travancore) Pvt.
Ltd. They were involved in mining and separating mineral sands into various
constituents like Illmanite, Monazite, Rutile, Zircon, Leucoxene etc. During 1956
this concern was taken over by the state government and was placed under the
control of its industries department. The unit was converted as a limited company
with effect from 1.4.1972 in the name of "The Kerala Minerals and Metals Ltd".

Initially the company had only one unit known as 'Mineral Separation
Plant'. In 1974 the company received intent for the production of Titanium
dioxide (Ti02) pigment using Chloride process. In 1976 KMML registered its 2nd
unit known as Titanium dioxide Pigment Plant. Its construction started only in
1979 and total capital cost was Rs.144 Crores. The plant was commissioned in
December 1984. KMML became the first and only Integrated Titanium dioxide
plant in the world.

Even though KMML was commissioned in 1984 it was not able to operate
efficiently due to technical problems. Due to these problems the company has to
suffer an accumulated loss of more than the capital investment over a period of 8
years.

In the above circumstances it was in 1991 that the entire personnel of
KMML from top management to down to the lowest workers started to think
individually and collectively about the requirement of a 'Turn Around'. A strategy
was planed and implemented with the wholehearted support of the workforce
during the period 1991-1993.1t started to yield results and the Company attained
the break even level by 1993.From 1993-1994 onwards, the company started to
make profits and wiped out the entire accumulated loss within a few years and
repaid the long term loans. Thereafter, it is the story of success and growth.

INCORPORATION OF KERALA MINERALS AND METALS LIMITED

Kerala is a land enriched with heavy mineral deposit. This richness evolved
the formation of the company Kerala Minerals and Metals Limited (KMML).

It was all way back in 1909, when a German Chemist namely
Dr. Schaumberg noticed some brown sand particles sticking with coir exported
from India. He realized that the particles present were Monazite leading to the
discovery of vast deposits of Monazite in the black beach sands of
Manavalakuriclll in the east Travancore state. Late the Geological Survey of India
established the occurrence of Monazite and other earth minerals like limonite,
Rutile, Leucoxene, Sillimanite and Zircon.

Miss. F X Pereira & Sons (Travancore) Private Limited were the pioneers
who established the first full fledged Mineral Separation industry in Chavara area
way back in 1932 using the dry separation process. Gradually the company found
itself in financial crisis and in January 1956, the Kerala State Government took
over the company and continued under name F .X.P Minerals in 1972 the
Government renamed the name of the company as. The Kerala Minerals and
Metals Limited (KMML). At present KMML consists of two units, the Mineral
Separation Plant and the Titanium Dioxide Pigment Plant.

TECHNICAL COLLABORATION

The KMML entered in to technical collaboration with three
multinational corporations M/s. Kers MC Gee Chemical Corporation of USA.
M/s. Benedict Corporation of America. M/s. Woodall Dukham of UK respectively
for the above. The Metallurgical of Engineering Consultants India Limited
(MECON) a Government of India Undertaking did the detailed engineering

ORGANIZATION STRUCTURE

MANAGING
DIRECTOR

GM PRODUCTION DGM P&A GM GM FINANCE
MARKETING

MAINTENANCE MANAGER AGM AGM
MANAGER
MANAGER
WELFARE
DEPUTY DEPUTY
MANAGER ASST MANAGER MANAGER
PERSONNEL
OFFICER

PROCESS SENIOR
EMPLOYEES
ACCOUNTANT

EMPLOYEES EMPLOYEES
ASST TO SENIOR
ACCOUNTANT

MARKETING PURCHASIN
EMPLOYEES
OF FIRM G OF FIRM ACCOUNTANT
(DOMESTIC)
GRADE 1

ASST TYPIST PEON
GRADE ACCOUNTANT
GRADE 2

EMPLOYEES EMPLOYEES

DEPARTMENTAL STUDY

Like any other public sector undertaking KMML has separate departments
and separate executive heads for each department Departments are based on the
functional basis. Each department specializes in its own area of operation. The
various departments in the KMML are:-

1) Personnel & Administration

2) Marketing

3) Finance

4) Production

5) Maintenance

6) Materials

7) Data processing

8) Fire & Safety

9) Technical

10)Research and development Department

11)Project

1) PERSONAL AND ADMINISTRATIVE DEPARTMENT

Of all the factors of productions, man is by for the most important. It is a matter
of common knowledge that every business organization depends for its effective
functioning not so much on its material or financial Resources as on its pool of able and
willing Human Resources.

M J Jueius defines “personnel management as the field of management which
has to do with planning, organizing, controlling various operative activities of procuring,
developing, maintaining and utilizing a labour force in order that the objectives and
interest for which the company is established are attained as effectively and
economically as possible and the objectives and interest of all levels of personnel and
community are served to the highest degree”.

Workman Classification

Permanent employees

There are about 215 officers and 960 non technical staffs in the TiO2
pigment plant as permanent employees.

Employees engaged on contract basis

The employees worked on contract for a limited period of time on terms
and conditions fixed by the company. They are mainly engaged through
employment exchange.

Temporary or seasonal Worker

These workers are employed when the workload is more and seasonal
demand is high. They are dispersed when the work is over.

Casual Labour

They are employed from people who lost their land due to acquisition by
KMML. They are engaged first as casual workers and then absorbed as permanent
employees when vacancy arises.

Apprentice

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

Certain Recruitment Sources

o Internal Search

o Advertisement

o Employees Recommendations

o Employment Agencies

o Temporary Help Service

o Schools, College and Universities

o Professional Organizations

o Casual or unsolicited Applicants

o Other Sources

Recruitment procedure in KMML

1. The employment exchange compulsory notification of vacancies
Act.1959 stipulates that every establishment in public sector shall
before filling vacancy in any employment in the establishment in
public sector should notify the vacancies to the concerned
employment exchanges any failure to notify such vacancy is an
offence punishable under that Act. Therefore the chief executive of
public establishments shall notify vacancies to comply with the Act.

2. Recruitment to managerial and professional posts carrying a starting
basic salary excluding DA and other allowances of Rs 15000 / per
month and above shall be made by selection from the applications
received through sufficient advertisement in newspapers. The
candidate sponsored by the employment exchange shall be selected
from the applications received through sufficient advertisement in
newspapers. The candidate sponsored by the employment exchange
shall also be considered for selection .If the details are furnished by
the employment exchange, call letters are issued to the short listed
candidates for the interview or test.

3. Selection to all other post outside the preview of public service
commission shall be made from among the candidate sponsored by
employment exchange. In this case filling up of vacancies by
generating applications through advertisements in newspapers should
be attempted only after obtaining non availability certificates from
employment exchange.

4. Recruitment to vacancies should be made by committees set up by
board of directors with not less than 3 members and atleast 1 of them
being government representative.

5. In respect of direct recruitment the principles of reservations as
applicable to government appointments should be adhered to the
principles of communal rotations and laid down in Rule 15 to 17 of
the Kerala subordinate service Rules part II shall be followed.

6. No preferences shall be given to the apprentice of the undertaking
while making recruitment against permanent vacancies.

7. The practice of hiring persons on daily wages to man posts, which
can be called through employment exchange, shall be discontinued.
All existing vacancies should be anticipated and actions should be
taken to fill them. All amounts spent on hiring daily wage employee
shall be treated as irregular expenditure, which could be recovered
from the appointing authorities.

8. The instructions already issued by the government to these extend
they are contrary to the foregoing procedure will be cancelled from the
date of issue of the circulars.

Working Hours

The company works on shift bases. There are 3 shifts for plant and general
shift for Administration. The timing is as follows:

 A shift

6 am to 2 pm

 B shift

2pm to 10 pm

 C shift

10 pm to 6 am

 General

9 am to 5 pm

Stipulations

An employee has to report for duty at 9 am except the employee worked in
shifting times. He may enter the company after one hour and will not be allowed
to enter after his grace time. An employee entering after the grace time may losses
15 minutes salary / wage for the first 15 minutes and between 16 to 30 minutes
late he losses 30 minutes salary and between 31 min to 60 min late he losses one
hour salary or wage. This is closely watched by the time officer.

Welfare Activities

The provision regarding the Factories Act 1948 require the appointment of
a Fulltime Labour Welfare officer in every concern which employs 500 or more
employees. In KMML personnel and Administration department is entrusted
which covers the intellectual, physical, more and economic betterment of workers.

Aims of Labour Welfare Functions in KMML

Labour welfare facilities have the following aims:-

 To overcome the monetary frustrations of the employees

 To provide opportunities for development of individual talents

 To provide assistance in solving personal and family problems of
employees

 To offer facilities for the improvement of health of employees

 Create conditions where employees are able to develop a broader vision of
life matters.

 Bonus

Employees who get more than Rs.4500 per month are eligible for bonus.
Almost all employees of KMML get it.

 Provident Fund

PF was first introduced 1956 and administered by the trust. Here both the
employer and employee have to contribute 12 percent each of the basic pay,
where 8.1 / 3% is transferred to pension fund.

 Gratuity

Minimum amount payable as gratuity is Rs. 4500. Employees having
continuous service of 5 years are eligible for gratuity calculated as follows

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

 ESI

All the employees working here including casual and contract whose salary
does not exceed Rs 4500 per month are covered under this Act. As and when
employees are registered with ESI, they are entitled to get following benefits from
ESI

Sickness benefit

Disable benefit

Dependent benefit

Maternity

Funeral benefit

Rehabilitation

ALLOWANCES

The allowances provided by me company for its employees as followers

House rent allowance (HRA)

Workmen of me company shall be titled to HRA a 10 of me the basic
pay effective from 11-1-1997.

Conveyance Allowance (CA)

Upto Rs 100 given as Conveyance Allowance as per the
memorandum of agreement.

- Shift allowance

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

- Washing allowance

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

- Cash tending allowance

Rs 150- 180 pm is paid as cash handling allowance to employees
who look after the duties of the cashier

- Milk allowance

Workers haling 15 days of attendance are eligible for milk
allowance amounting up to Rs 90 pm

- Stitching allowance

Employees are given stitching allowance as follows uniform for
gents Rs 180. Over coast Rs 85

For bounce of upon Rs 40

- Chlorine tanker duty allowance

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

- Acting allowance

All workmen in titanium dioxide pigment ………..of the company
work in the ‘c’ shift will get night shift allowance of Rs 20/-.

- Education Allowances

Education allowance are granted to 2 children

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

S.S.L.C = Rs 90 pm

Plus two = Rs 100 pm

Degree = Rs 120 pm

Professional course = Rs 140 pm

- Attendance Allowance

Employees for offering in attendance of 80-90% are given a bounce of Rs
100 greater than 90 are given a bounce of Rs 110 .100 % attendance are given 1
day wage and DA (Rs 200)

Employee PF and pension scheme

In KMML the employee in T 102 pigment unit are covered by the
employee pf miscellaneous provision act 1992. But the employees in the MSU are
not covered by this Act.12% of basic part and DA will be recovered from the
salary an equal amount is contributed by the company in their account 8.33 % of

the scheme is permitted to pension scheme and remaining 3.6% is permitted to
employee’s provident fund.

Housing loans

In KMML employees will get housing loan up to an amount of Rs
4,00,000 for construction of a new house and for extension of existion of existing
house Rs 2,00,000

Vehicle loan

The maximum amount by loan admissible for purchase of scooter motor
cycle to workmen in KMML will be Rs 50000.intrest will be changed of the
existing rate.

Non-financial incentives in KMML

Financial incentives are used to motivate employee for higher works
.however individuals have various needs, which they want to satisfy while
working in the organization .people at comparatively higher level of managerial
hierarchy attach more important to socio-psychological needs, which cannot be
satisfied by money alone. The following are me important non-financial infective
in KMML

LEAVE

Annual leave: -

In KMML employers are allowed 26 days by annual leave for every
completed calendar year by service,

Sick leave

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

Casual leave

Casual leave of 14days for a calendar year will be allowed to all
employers, speed leave with wages, as presently given to heart patients are extent
ended to these workers shuffling from cancer, those undergoing kidney
transplantation and brain disease .those workers who undergoes sterilization
operation will eligible for all benefits available to the safe government employers
doing sterilization operation.

TRADE UNION

There are 4 trade union in KMML

1. Titanium complex employee unions (UTUC RSP CB)

2. Titanium complex employee congress (INTUC)

3. KMM titanium complex employee union (CITU)

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

WAGE STRUCTURE

Existing scale of Revised scale
Sl no Category of employee
pay (Rs)

1 Workers grade 3800-80-4040-85- 4380-85-465-110-
employees, sweeper, 4465-110-5015- 5015-135-5825-
scavengers 135-5825 150-6725

2 Security guards and 4380-85-465-110- 4795-110-5015-
peons 5015-135-5825- 135-5825-150-
150-6725 7325-170-9025
3 Bluer pink operator 4795-110-5015- 5150-135-5825-
record keeper and store 135-5825-150- 150-7325-170-
attitude 7325-170-9025 9025-200-9223

4 Fireman drivers 5150-135-5825- 5420-135-5825-
150-7325-170- 150-7325-170-
9025-200-9223 9025-200-9625

5 Operation grade C with 5420-135-5825- 5690-135-5825-
typist, steno, 150-7325-170- 150-7325-170-
accountant, assistant 9025-200-9625 9025-200-10025
canteen super wiser
6 Operators grade B 5690-135-5825- 6275-150-7325-
receptionist, male, 150-7325-170- 170-9025-200-
nurse, etc 9025-200-10025 10825-215-11470

7 Senior grade assistant 6275-150-7325- 7375-200-9025-
operation grade A 170-9025-200- 200-10350-250-
canteen supervisors, 10825-215-11470
operational technical 11135-250-11995

2) MARKETING DEPARTMENT

"Marketing is a social and managerial process by which individuals and
groups obtain what they need and want through creating and exchanging products

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

ABOUT KMML MARKETING

KMML have monopolistic in Titanium Dioxide (TiO2) pigment industry.
KMML is a public limited company that stands as a leader in production of TiO2.
The company has a large number of customers from all over the world and out
side.

The marketing department is engaged in selling of the company's product.
There is no separate department for sales and marketing management also
perform these functions. The marketing section keeps detailed report about
customers' product, product group control, dispatch and payment.

Products of KMML always maintain very high standard perfection,
achieving technical excellence in every phase of production to offer a wide range
of products for quality conscious customers.

At KMML, one factor comes before everything else is customers and
KMML go out of their way to ensure customers satisfaction. A team of motivated
marketing experts, who make it their business to find out the firm's views,
highlights customer's consciousness. Maintaining close contacts, they are
perfectly aware of customer's needs and are instrumental in development of new
products at price and offering.

MARKETING MIX

PRODUCT

The major products of KMML is Titanium Dioxide Ti02 (Rutile) pigment,
which is extensively, used as the main raw material by several industries such as
paint, plastic, rubber, printing, inks etc.

PRODUCT PROFILE

Titanium Tetra Chloride (synonym-Tickle) is produced as an intermediary
product in the production of rutile grade titanium dioxide pigment. Titanium Tetra
Chloride is extensively -used in the manufacture of Titanium dioxide pigment,
Titanium sponge or metal.

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

I) Kemox RC 800:- It is recommended for printing inks, high gloss coating,
industrial coating, low abrasivity pigment for letterpress gravure polyamides
and exterior application where maximum chalk resistance is not required.

2) Kemox RC-800 PG:- It finds application in plastic requiring a blue white high
dispersion Ti02. Other areas of application are powder coating, polyethylene
films and vinyl sheet goods. It is used in most other common plastic or rubber
floor like applications.

3) Kemox Rc-822:- It is recommended for interior and exterior enamels and
lacquers for industrial and architectural purpose.

4) Kemox RC - 813:- It can be used in both interior and exterior low gloss and
flat paints and coating- both solvent and water based. It finds application in
interior flat wall paints, exterior low gloss or flat house paints, low gloss
maintenance pints, low gloss or flat chemical coating etc. Kemox RC-813 can
be described as a universal pigment for all coatings formulated at higher
percentage pigment volume concentrations.

5) Kemox RC-802: It is recommended for both interior and exterior applications.
This is also recommended for architectural and industrial paints-both solvent
and water based.

6) Kemox RC-808: It is recommended for automotive, industrial and architectural
finishes. It is also recommended for coil coating, radiation cured finishes;
emulsion paint systems powder coating, water borne coating and printing inks.
It can also be used for letterpress gravure, polyamides and other inks where
low abrasive pigments are required.

PRICE

Based on the variation in the market, the price of Ti02 is fixed by KMML.
The price is fixed by Chairman and Finance Secretary of the Government of
Kerala. The price is periodically revised due to market fluctuation.

Selling price of all grades ofTiO2 (Rutile Grade Pigment)

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

PROMOTION

KMML is a sole manufacture of rutile grade titanium in India. Hence there
is no much competition in the world market. Advertisement promotes the
company product.

ADVERTISEMENT

Advertisement are given in trade journals, industrial news, magazine used
by paying manufactures association, ink producer association etc. Advertisements
are also given in newspapers while appointing stockiest.

KMML subscribes "Paint India" the leading publication of the paint
industry and also "Mineral Market Reporter" which provides valuable information
about Ti02 at national and international level. The company also provides
discount scheme for its customers.

PLACE OF DISTRIBUTION

Marketing channel decisions are among the most important decision that
management faces. A company's channel decision directly effects every other
marketing decision. The firm's sales force and advertising decision depends on
how much persuasion, training and motivation the dealer need.

DISTRIBUTION SYSTEM

In KMML distribution is divided into two major categories:

I) Direct Supply:- Direct Supply to the actual customers who require seven
metric tones or more at a time. By this policy KMML, have estimated the
middlemen and it is easily adapted to any circumstances.

2) Supply through Stockiest:- Supplies to small sectors are done through
stockiest appointed by the company in all major cities. Company fixes prices for
its products and the stockiest are responsible to see the pelts at fixed once. All the
grades of Ti02 pigment produced in KMML come under the category of industrial
goods; Ti02 is mainly used in paint industry, textile industry, printing ink industry
etc. The total customers can be divided in to three types:

 Major Customers

 Stockiest

 Other Customers

CUSTOMERS

Paint industry contribute large customers of Ti02-, other largest customers
include such industrial as paper, plastic, polyester. The bulk of the products in
KMML are consumed by industrial namely:

 Asian Paints

 Hindustan Latex and Revin

 Shalimar Paint

 Corlass Nerolac

 Jenson and Nicholson

 Sanderson Chemicals

 Mega Meditex

 Camlin

 Plastic Chemix Industries

 Berger Paints

 Rajdoot Paints

SALES PROCEDURE

The sales section obtains the order from the customer; receives the pigment
in the form of cheque or DD, dispatches the quantity and send invoice to Financial
Department.

MAJOR COMPETITORS

The company has a monopolistic nature in TiO2 pigment industry in India.
The company has some competitors in the world market.

The main competitors in the world market are:

 Dupont (USA)

 Ishihara (Japan)

 Hoitex (USA)

 Millennium (Germany)

 Henduk (Seoul, Korea)

 Flectha Titanium Products (New Zealand)

 Tofins (Netherlands)

EXPORT MARKET IN KMML

Even through KMML faces stiff competitors from multinational giants,
KMML receives a number of export orders through e-mail, fax and through
correspondence from customers abroad. KMML enjoys good reputation for
quality pigment in the international market. The company is exporting its products
in Korea, South Africa, Sri Lanka, Turkey, Dubai, China, Mauritius, UK and
Philippine. The company is now exporting 30% of their production. It has plans to

raise this to 50% by 2013.

MARKETING INFORMATION SYSTEM

KMML is a member of chemical and allied products export council.
Bulletins of chemical are regularly received by KMML and used to obtain the
latest trend of Titanium Dioxide demand for various customers both indigenous
foreign.

KMML subscribes "Paint India" the leading publication of paint industry
and also "Mineral Marketing Reporter" which provides valuable information
about Ti02 at national and international level.

KMML uses the services rendered by "India Marketing Bureau" which is a
marketing research as advised by KMML. For this KMML has to pay fees
annually for their research studies.

HANDLING CUSTOMER COMPLAINTS

The complaints received from the customers are registered by KMML, and
acknowledgment sent to customers. The details of the complaints are entered in
the customer complaints register. The particular about the progress of

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

MARKETING FUNCTIONS OF KMML

FUNCTIONS OF EXCHANGE

I) Buying and Assembling:- The extraction of raw materials of producing finished
titanium dioxide is done at Chavara where the factory is situated. Only certain
quantities of chemical and other raw materials is purchased from other units for
the production of titanium dioxide. Assembling of titanium dioxide is done at the
factory godown.

2) Packing:- Titanium dioxide is packed in 25Kg net weight in laminated multi
wall paper bags. After the chemical process is over, the materials is micronized,
the pigment is collected in bagging. The material is taken to a conveyor, here two
peoples are engaged in bagging and four are in stocking. It is then taken and
stored in pigment godown. 50 bags are packed in one pallet weighting 1.25mt.

3) Selling:- KMML sells titanium dioxide directly to its consumers and its
stockiest in bulk. The stockiest are appointed by fulfilling certain rules and
regulation of the company.

Functions of physical supply

 Despatching: - After the order from stockiest and consumers, have been
received, the marketing department arranges the execution of orders by
way of dispatch. The mode of payment must be in the form of Demand
Draft payable at any scheduled bank at Kollam.

DOCUMENTS AND REGISTERS TO BE PREPARED FOR

DESPATCHING GOODS

a) Order Register:- Particulars of order received is entered in a registered called
order register. It shows the date, name of the party, grading of the products,
payment of cash and transport mode.

b) Delivery note:- This note is prepared before the goods are dispatched. It has
the KGST Rules 1963.

c) Delivery Chellan:- It is another important document which is prepared by the
dispatch section. It contains the details of goods, which are dispatched, name
of carrier, L.R.No, excise, gate pass note and date of dispatch.

d) Invoice:- Invoice is prepared at finance department and submitted to the
marketing department. It shows the name of the customer; date, grades of
goods, quantity purchase, price, destination, truck no etc.

e) Gate Pass:- It is prepared by the dispatch section. The company gate pass is
submitted before the security officer to take goods out of the factory premises.

f) Transportation and Insurance: Transportation and insurance are to be arranged
by the customer. The customer shall nominate their approved transporter.

DECLARATION UNDER KGST RULES 1963 FORM 27B

This is another document, which has to be filed up and made ready before
dispatching the goods. The form is addressed to the officer in charge of check post
and it must be signed.

MARKETING FACILITATING FUNCTION

1) Financing:- For carrying out marketing functions, KMML does not require
financial assistance in form at loans. The customers will have to make payment
in advance.

2) Risk Bearing:- Marketing of titanium dioxide pigment involves a number of
risks. Returning the goods by customer or damages at the time at storing in the
factory go down covers the risk factor. All the above risks are reduced to a
great extend with the help of insurance.

PRODUCTION AND SALES

The commercial production started in 1985. Following chart will show the
production and sales of titanium dioxide in past years.

Year Production in m/ton Sales in m/ton

2004-05 18042.000 16150.475

2005-06 15377.775 18011.500

2006-07 10115.650 6050.450

2007-08 14486.550 14707.550

2008-09 19317.000 21526.850

2009-10 21816.000 23501.000

2010-11 23521.01 25230.000

2011-12 24251.610 25851.000

MARKET RESEARCH ACTIVITIES OF KMML

MAIN OBJECTIVES

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

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

proposed expansion of 6000 million tonnes.

3) Equivalent grade needed in market.

New product development

A new hydrophobic plastic grade pigment RC804 was developed by the
effort of inhouse R and D of our company. The trial production of the same,
approximately 100 times was taken successfully. The sample has been tested at
CIPET Hyderabad and found to be comparable to competitive international grade
pigment. Free samples were given to customers for their evaluation after which
bulk orders were received and the entire material could be sold out.

ORGANIZATION CHART OF
FINANCE DEPARTMENT

GENERAL MANAGER
(FINANCE)

MANAGER (FINANCE) MANAGER
(INTERNAL AUDIT)

DEPUTY MANAGER INTERNAL AUDIT
(FINANCE) ASSISTANT

A/C A/C A/C A/C A/C A/C
OFFICE OFFICE OFFICE OFFICE OFFICER OFFICER
R CASH R R TAX R BILLS SALES
SALARY BUDGET TAX

ASST ASST ASST ASST ASST ASST
A/C A/C A/C A/C A/C A/C
OFFICE OFFICE OFFICE OFFICE OFFICE OFFICE
R R R R R R

ACCOUNTA ACCOUNTA ACCOUNTA ACCOUNTA ACCOUNTA ACCOUNTA
NT NT NT NT NT NTNT

3) FINANCE DEPARTMENT

Finance is the lifeblood of every business. This is one of the most
important departments. In KMML a well organized finance department is
functioning. The finance position of the company can be understood by Balance
Sheet and Profit and Loss Account, prepared budget report according to the
company's goal is also an important function of the finance department.

Accounting Policy of KMML

1) Convention

The final statements are prepared under the historical cost convention in
accordance with applicable accounting standard that was relevant to
presentational requirement of the Companies Act 1956.

2) Fixed Assets

Fixed assets are stated at cost of acquisition and additional if any, less
accumulated depreciation, is provided at rates and methods prescribed in the
schedule XIV of the Companies Act on straight line method in respect of plant
and machinery and railway sliding belonging to TiO2 pigment unit. And written
down value method in respect of all the asset of the company. The depreciation is
calculated on the basis of Companies Act and for income tax audit it is added to
the profit and recalculated as per the audit rules.

3) Excise duty

Excise duty on manufactured is accounted for as and when goods. Are
dispatched is accordingly no provisions is made in respect of duty due on goods
manufactured, but not dispatched nor included in valuation of stock.

4) Gratuity

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

5) Inventory System

Work-in-progress is valued at the cost and stock of raw materials,
chemicals, fuel and stores are valued at weighted average cost on monthly basis.

ADJUSTMENT PER TRAINING TO EARLY YEARS

Adjustment arising out of errors or omission in the financial statement of
earlier years are prior period item, if the amount involves is Rs. 1,00,000/- or
more in each case.

FUNCTIONS OF ACCOUNTING SECTION OR FINANCE DEPARTMENT

The company maintains a clear and perfect accounting system. The main
activity of the Finance Department is Working Capital Management. Preparation
of Fund statement, cash Flow Statement, Balance Sheet. Profit and Loss Account
etc are also the activities of Financial Department. Secretarial work relating to
Board comes under the review of the Finance Department. Most of the activities
carried out by the Finance Department are pertaining to long term and ,short term
requirements of the operation, closing purchase bill, maintaining the account of
contractors, subcontractors, income tax deduction, salary discrepancy, dealing
with the financial institutions with imports and exports are also the functions of
the Financial Department. The Functions are:

1) Purchase are Recorded and Analyzed

The Finance Department of the company keeps the accounts of purchase of
spare parts, chemicals etc and accounting entries are made in the books of
accounts of the company on day to day basis, on the basis of bills and supporting
vouchers of each item. Each voucher is essentially numbered to avoid
discrepancy.

The company makes only miscellaneous purchase, as the main raw
material is mineral sand. The department analyses the details of purchases
afterwards.

2) Salary Section and Pay Division

The main function of the department is preparation and disbursement of
salary of officers, members of office staff and workers. The department keeps
salary register pertaining to each of the above sections, which facilitates charges
in salary due to granting of annual increments and deduction due from the salary.
The disbursing of salary is crediting the amount to the respective bank account of
the employee. The department is sending a detailed list of salaries; they have
arranged an A TM counter of ICICI Bank in the company compound. Certain
employees are paid by cheque. The department is maintaining sub ledgers for
deductions made in the salary such as PF, Insurance Premium Advance, Income
Tax etc. Another important function is computation of income Tax. Its deductions
and prompt remittance to IT Department.

3) Sales and Revenue Accountine:

The department is calculating and paying sales tax and central excise duty
to the concerned Government every year. The Government is earning a total
income of Rs.44 crores and Rs.14 crores by way of excise duty and sales tax duty
from the company.

4) Cash and Bank Transactions

The department does all the matters relating to the day-to-day cash
transactions. They receive and make payment for purchase and sales. The
company is allowed to collect cash up to the limit of Rs.20000/- is carried out by
cheque or DD as per direction of the Tax Authority.

5) Major Banks of the Company

ICICI, SBI, SBT, Standard Chartered Bank, Canara Bank, Central Bank
of India.

6) Costing

Annual budget and cost sheet is prepared at the outset of every year and on
the basis of the department fixes the floor price of each product of the company.

7) Calculation of Depreciation

The department calculates the depreciation. Depreciation is provided on
straight-line method in the case of plant and machinery of Titanium Pigment Unit
and written down value method in case of other assets of the company.

AUDITING

Auditors are appointed by the Government for a period of one Year. There
exist an external audit and internal audit.

Internal Audit:- These are part of the organization. There is an internal auditing
sector. They are in the charge of periodical audit.

External Audit:

They are as follows:

 Statutory Audit

 Account General's Audit Inspection Audit

 Sales Tax Audit Income Tax Audit

 Cost Audit

The company has registered yet another excellent result during the year
ending 31 March 2003. Production of the company for the year 2000-2005 is
given below.

Production Year Ti02 Pigment Minerals (Ilmenite)
2007-08 22815 10823
2008-09 25426 11647
2009-10 25612 17945
2010-11 25921 19138

2011-12 26859 21555

During the year 2011-2012 Company has achieved a record production of
25612 MT as against 25426 achieved during the previous year. Similarly, the
production in the MS unit has also increased from 10823 MT to 17945 MT. This
is mainly because of adding two more magnetic separators in the old plant.
Modernization of MS plant ois nearing completion and when the same is
completed anticipated production would be 45000 to 50000 MT per annum.

FINANCIAL RESULTS

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

2011-12 2010-11
Particulars
(Rs. In lakhs) (Rs. In lakhs)

Total grossturn over 32854.54 32304.14

Gross profit before interest and
3079.60 2594.06
depreciation

Profit before tax 2243.24 1782.05

Profit after tax and prior period
1121.07 1115.27
adjustment

Transfer to general reserve 92.79 0.00

Capital employed 43851.73 43075.03

Internal generation 1885.43 1601.24

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

As per 2011-2012 2010-011
Particular
Schedule (Rs. In lakhs) (Rs in Lakh)
Income
Gross sales 32854.54 32304.14
Less:Excise Duty 3280.05 3337.07
Net Sales 29574.49 28967.07
Other Income 0 1776.80 1483.14
Stock Differential P 2959.55 1008.46
Total 34311.02 31458.67
EXPENDITURE
Manufacturing Expenses K 23859.88 22085.60
Payments and Benefits of
L 6783.54 6165.78
Employees
Administrative selling and M 583.00 613.23
Other Expenses N 72.00 73.38
Interest and Finance Charges R 764.36 738.63
Depreciation 2243.24 1782.05
Profit Before Tax Q 7.67 8.78
Less: Prior Period items 158.50 0.00
Doubtful advances 1773.27
Profit after Prior Period 2077.07
Adjustment
Less: Provision for Current 900.00 625.00
Taxation
Less: Provision for 116.08 0.18
Deferred Tax 56.00 33.00
Less: Provision for FBT
Less: Prior year adjustments S 0.00 25.48
relating to Income tax 1237.15 862.61
Profit for the year
Profit & Loss account Balance 23662.66 22800.05
Brought Forward 24899.81 23662.66
Amount available for 309.33 0.00
appropriations 52.57 0.00
Proposed Dividend 92.79 0.00
Tax on Dividend
Transfer to Reserves 24445.12 23662.66
Surplus Transferred to Balance
39.99 27.89
Sheet

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

Significant Accounting Policy U
Notes forming Part of Accounts T

BALANCE SHEET AS AT 31ST MARCH 2012

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

SOURCES OF FUNDS
Share holders funds A 3093.27

Share Capital B 40575.71 3093.27

Reserves & Surplus C 182.75

Deferred Tax Liability 39700.46

298.83

Total 43851.73 43092.56
Application of Funds
Fixed assets R 11746.84 10157.90

Capital work in progress F 9037.29
Investments G 17.60

Current assets H 22531.31 27130.94 5163.18
Loans and Advances I 18968.74 18975.96

41500.05 46106.90

Less: Current Liabilities D 5895.47 6577 .63 0.10
Less: Provisions E 12554.58 11775.42
18450.05 18353.05
Net Current Assets 23050 27753.85

Miscellaneous expenditure
(To the extent not written off J 0.00
or adjusted)

Significant Accounting Policy U

Notes forming Part of T

Accounts 17.53

TOTAL 43851.73 43092.56

WORKING CAPITAL

Working capital refers to that part of the firm's capital which is
required for financing short teem or current asset such as cash, marketable
securities, debtors and inventories. It is a measure of both a company's efficiency
and its short term financial health. If the working capital is positive it means the
company is able to payoff its short term liabilities. If it is negative company is
unable to meet its short term liabilities with its current assets. If a company's
current assets do not exceed its liabilities then it may run into trouble paying back
creditors in the short term. So if a company working in the most efficient manner
(slow collection) it will show up as an increase in the working capital.

Current Loans and Current Working
Year Provision
Year advance liability capital

2009-
29187.84 23718.91 4183.87 16521.69 32201.19
10

2010-
127130.94 118975.96 16577.63. 111775.42 27753.85
11

2011-
122531.31 12004-05 129187.84 112554.58 123050.00
12

PRODUCTION DEPARTMENT

DGM PRODUCTION

AGM

PLANT MANAGER

DEPUTY PLANT
MANAGER

PROCESS ENGINEERS

ASST PROCESS ASST PROCESS
ENGINEERS ENGINEERS

OPERATORS OPERATORS

WORKERS WORKERS

4) PRODUCTION DEPARTMENT

KMML always maintain high standard of perfection by achieving technical
excellence in every phase of production. Catering to strict guideline, KMML
offers a wide range of products for quality conscious customers. Their products go
in to the manufacture of variety of products used in every day life. Paint material,
facial creams, tablets, newsprint, rubber products, cosmetics and printing inks all
contain TiO2.

This department undertakes activities and decision regarding the
production work. Deputy General Manager (production and maintenance) controls
the activities of the department. Production of TiO2 is carried out in lot wise with
specific lot number. Each lot contain 15 MT of TiO2 samples are collected from
production at specific intervals and examined thoroughly in the laboratory or the
company. If any defect is identified, then the lot is considered as inferior quality. .

Mineral separation plant (MS unit) and TiO2 pigment plant (TP unit) is
two independent production units in KMML. The TP unit is divided in to three
plants.

 Illmenite Beneficiation Plant

 Acid Regeneration Plant

 Pigment

MINERAL SEPERATION PLANT

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

Several machineries were added in the course of time. This plant situated by the
side of the open mines, does the separation of the minerals from the beach sand.
The raw sand is first concentrated in spiral separation to enrich the heavy mineral
content. The wet concentrate is then dried in fluidized bed drier and then fed to
the dry separation plant. Magnetic separation and HT separation separate different
minerals. The plant also separates Rutile and Zircon from the sand.

TITANIUM DIOXIDE PIGMENT PLANT

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

process consist of following steps.

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

 Regeneration of spent Hydrochloride acid for minimum pollution.

 Conversion of beneficiated illmenite to TiO2 pigment

ILLMENITE BENEFICIATION PLANT

Here the raw illmenite containing 58-60% TiO2 is beneficiated to 90%
TiO2 content. The beneficiated illmenite is the raw material for the pigment
production plant. The ferric oxide in the raw illmenite is subjected to high
temperate of 8500c. The reduced illmenite then cooked and sent to digesters
where it is leached with 1820% HydrocWoric acid. The spent leach liquor is sent
to storage tanks. The leached illmenite after washing and filtering is calcined to
get beneficiated illmenite.

ACID REGENERATION PLANT

The spend leach liquor from the pre concentrator is processed in to the
spray roaster in which the liquid spray entering the furnace is heated by the

burning oil. The spend liquor then decomposes to metallic oxides and
hydrochloric acid. The hydrochloric acid vapour is first cooled in pre concentrator
and then absorbed in the wash liquor generated in the IBP to get 18% HCI which
is recycled back to IBP. The unobservable gases are scribbled with water before
venting to the atmosphere. The metal oxide consisting of mainly iron oxide are
slurred with water and routed to the slurry panel.

PIGMENT PRODUCTION PLANT

The pigment production plant has three units:

1. Chlorination plant

2. Oxidation plant

3. Surface Treatment and Pigment Finishing Plant

CHLORINATION PLANT

This unit beneficiated illmenite from chlorinated as reducing atmosphere
to produce Titanium Tetra Chloride (TiCI4). Chloride reacts with Titanium
Chloride and other metallic oxides. Beneficiated in the illmenite in the pressure
petroleum coke at a temperature of 800-900c in fluidized bed chlorination to
produce chlorides are condensed and purified to obtain pure TiCl4liquid, which 4s
stored in the storage vessel.

OXIDATION UNIT

In this unit raw pigment grade TiO2 is produced by reacting pure TiCl4
and oxygen with at a temperature of about 1000c in a reactor after preheating the
TiCl4 in a pure heater having suspended in code tubes to carry the Titanium
Chloride vapour. TiO2 raw pigment obtained for this unit is scurried with water
pumped storage tanks for further processing in the pigment-finishing unit, the
chlorine is liberated back to the chlorination unit.

Oxygen and chlorine are required for oxidation and chlorination.

PIGMENT FINISHING UNIT
The unit-dispersed slurry from oxidation unit is passed through the
different subsections of the unit via, sound milling and classification treatment
filtration, drying, micronisation, scrubbing, cooling and bagging. In the treatment
section chemicals are added. Give a coating to the pigment is reduced to two
microns to be micronisation treatment. The hot micronised pigment is cooled and
pneumatically conveyed to the final storage bin, this product is then bagged in
paper bags of 25 kg each stacked on woolen pallets (40 bags/pallets) and
dispatched.

AIR SEPERATION PLANT

This unit has been designated by Mis Lair Linde, France and supplied
through M/s BHPV Ltd Visakapattanam. The Oxygen and Nitrogen are required
for the process in the Oxidation and chlorination unit. This plant has a capacity to
produce the following.

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

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

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

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

IRON OXIDE BRICKS PLANT

An iron oxide brick is a building material produced KMML. The materials
used for the production of iron oxide bricks are:

1. Iron oxide

2. Lime

3. Cement

4. Riversand

5. Sodium silicate

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

problem is mainly connected with the disposal of iron oxide slurry, which has
been coming outside from acid regeneration unit as a waste. In order to dispose
the iron oxide powder the company started to produce the iron oxide bricks in the
plant. At present the company is using this product for its domestic purpose such
as constructing compound wall, floor etc.

5) MAINTENANCE DEPARTMENT
The maintenance department of KMML can be grouped in to Electrical,
Mechanical and Instrumentation section. The Joint General Manager
(maintenance) is the top authority.

1. Electrical section:

This department is under the control of assistant general manager
(Electrical). It is the function of the department to ensure the flow of electricity
through out the company.

2. Mechanical section:

This department is under the control of assistant general manager
(Mechanical). Function of the department is to ensure the easy working of
machines. The company is doing periodical shutdown. to carryout necessary
maintenance and servicing of the plant.

3. Instrumentation:

Assistant General Manager (Instrumentation) is the apex authority of this
section. The section inspects safety ness of valves, mechanics etc. and working of
instruments. A statutory body occasionally visits the company to check the safety
of the plant.

4. Civil:

Manager (civil) controls the activities of this section. They undertake the
functions relating to implanting new machinery etc.

MATERIAL DEPARTMENT

DEPUTY GENERAL
MANAGER
MATERIAL

MANAGER
MATERIAL

PURCHASE STORE

PURCHASE PURCHASE STORE STORE
OFFICER OFFICER OFFICER OFFICER
(INVENTORY
(IMPORT) (INDIGENO CONTROL)
US))

ASST ASST ASST STORE ASST STORE
PURCHASE PURCHASE OFFICER OFFICER
(INVENTORY
OFFICER OFFICER CONTROL)

STAFF STAFF CHARGE
STAFF STAFF
MAN

STAFF

6) MATERIALS DEPARTMENT

All functions relating to purchase and storage of materials for the company
is carried out by this department. This department is headed by the Deputy
General Manager (materials). There is around 27000 items of raw materials in
KMML. The functions of material department can be grouped in to three:

 Purchase

 Storage

 Inventory control

PURCHASE SECTION

Purchase can be broadly classified as

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

 Purchase made from foreign countries

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

 Local purchase. i.e., up to Rs25000/-this arises in the case of emergencies
and purchase can be made from approved.

TERMS OF PAYMENT

1. Direct payment

2. Through bank

3. Advanced payment

4. Letter of credit

PURCHASE FUNCTIONS

Purchase of materials is an important function of an industry. The
procedure of purchase is as follows:

1. Purchase request: - The department or officer in need of material has to place
his request in a purchase requisition form. In case of raw materials, it is done by
the inventory control section. The purchase requisition is prepared in triplicate.
The original copy of it is kept by storekeeper and the other is send to the
authorized executive. The purchase request must be approved by the concerned
department head.

2. Stock verification: -On received the purchase request the storekeeper checks
whether the materials required is available through the store. If the materials are
out of stock, the storekeepers inform the purchase section through and indent
form.

3. Selection of suppliers: - The next function is to select the supplier to whom the
order is to be sent. The company places a public tender notice for the procurement
of raw materials. On the basis of the notice the vendor submit the tenders. Tenders
have two parts:

Technical bid and commercial bid:

The tender committee opens the tender and verifies the technical bid
and if they are satisfied with the technical bid i.e., with the quality of materials,
they opens the commercial bid, the tender committee then prepares a comparative
statement and accept the lowest price quoted Quotation. Usually, a contract for
one year is made for the supply of raw materials. To avoid risk of the irregularities
of the supply, the company appoints more than one vendor. In case .of spare parts

the enquiry is send to the vendor for, the vendors list of company and the apt
vendor is selected on the basis of tenders. The vendor list contains the name .and
address of vendors and with specific items.

4.Purchase order: - after deciding the supplier, the purchase officer of KMML
has to place a purchase order. The purchase order is written authorization to the
supplier to supply the particular materials. The materials are to be supplied
according to the terms and conditions of the purchase order. In KMML five copies
of purchase order is prepared.

 The original is send to the supplier.

 Second copy is send to the material receiving section

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

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

 The last copy is kept in the department itself.

5. Inspection of 200ds and quotation reception: - On receiving the materials
from the vendor, a visual inspection is conducted. If there is any discrepancy
between the party advice copy and received copy, a discrepancy is prepared and if

there is any damage, a damage report is prepared.

Items below Rs 500/- call for single quotation. Items above Rs 500/- and
below Rs 50000/- are call for minimum three quotations from important
manufactures, dealers and stockiest. Items above Rs50000/- call open tenders.

STORE SECTION

Store section deals with:

 Receiving the materials

 Inspection of materials

 Storage and presentation

 Proper classification and codification of materials ~ Materials handling

 Issue and dispatch

 Stock records

 Store accounting

 Stock taking

STORAGE FUNCTIONS

Various documents are prepared by the store section for the proper
functioning of the department. The documents maintained are as follows:

1. Stores inwards book: - On receiving any materials to the store, it is entered
in a document called stores inward book (SIB)

2. Inspection of 2oods: - On receiving any materials and preparation of SIB
inspection request is send to the concerned technical office for technical
evaluation and reports are prepared on this basis.

3 Store received note: - After the preparation of SIB and inspection of goods
or materials, Stores Received Note (SRN) is prepared. This is the document
showing that the, materials received is accepted and payment can be made for it.
The SRN is sent to the Finance -department for payment. Four copies of SRN are
maintained in KMML. Usually the company gets a credit facility for 45 days.

4. Materials issue note: - Any material is issued from the store only after
receiving a material requisition or Material Issue Note (MIN). MIN contains all
the details regarding the material as well as the indenter.

5. Stock transfer note: - For transfer of materials between store or section or
contractors, for transfer of materials between store and section prepared, it

contains details such as material code, cost center, material description, unit and
quality. It should be mentioned that from which section and to which section is
the transfer taking place.

6. Material return note: - Some times materials issued from the stores may
be returned. In that case Material Return Nate (MRN) is prepared. It contains
details such as the name of department from which the material is returned, value,
quality, code, unit, present balance and reason for return.

BIN CARD

BINCARD is a document attached to bin and it contains the quantities
details of the materials received, issued and closing balance. In addition to this, it
indicates information regarding different stock levels like minimum level,
maximum level, recorder level etc coded number and name of materials.

INVENTORY CONTROL SECTION

Proper inventory management is necessary to provide and maintain good
customer service. It enables smooth flow of goods through the production process.
It is important as it provides protection against the Uncertainties of demand and
supply and also performing the various production operations economically and
independently.

Materials purchased for month is analyzed and an issue price is fixed for
the month. The company follows weighted average method.

DATA PROCESSING DEPARTMENT

DGM (DATA PROCESSING)

AGM (DATA PROCESSING)

MANAGER (DATA PROCESSING)

SOFTWARE ENGINEERS

ASSISTANTS

7) MANAGEMENT INFORMATION SYSTEM

Management Information System (MIS) is under the supervision of the
data processing department. Assistant General Manager (EDP) is the top authority
of the department. There are 70 personal computers in the company. 53 personal
computers in the company are in local area network. Company is having 10 Mega
Bytes personal computers back borne copper cabling. It has four signals:

1. Stores

2. Plant technical service

3. Illmenite Beneficiation plant! Acid regeneration plant

4. Pigment processing unit/laboratory

There is a direct connection from IBM server to Purchase, Finance,
Marketing and Personnel department. The entire Information Technology
activities are monitored by Electronic Data Processing (EDP) section. KMML is
using Oracle Related Database management system at backend and Power Builder
as front-end. An integrated online application module developed in power builder
is being used among finance, purchase, stores, marketing, personnel and
production departments. The database is fed to the system by each department,
which is required to generate various Management Information Systems to the
management. A strict security control is incorporated in the operations of various
modules.

FIRE AND SAFETY DEPARTMENT

DEPUTY GENERAL
MANAGER
FIRE AND SAFETY

ASST GENERAL
MANAGER

FIRE OFFICER SAFETY OFFICER

LEADING FIREMAN PLANT ENGINEER

FIREMAN SAFETY INSPECTOR

8) FIRE AND SAFETY DEPARTMENT

Fire and safety is a main department of KMML. It manages the process of
giving security to the employees by giving successful training and giving license
to employees and machines. The sections under fire and safety are:

1. Employee details managing: - In this section the details of the employees
are identified by separate employee codes. Here in employee code, employee
name, designation, date of birth, date of joining and qualifications are recorded.
These section supplies the details of employee to another section.

2. Employee training: - All the employees are trained for the successful
running up of KMML. The details of training is recorded when they gives each
training. Employee code, serial number, date of training, course and remark are
recorded. When an accident occurs the details of the training given to the
employee is produced.

3. Employee accident: - This section handles the details of accident occurs to
the employee. Employee code, serial number, accident data, description of
accident, the body part which was injured, unsafe condition or unsafe act, whether
lost time accident or not lost time accident, the days lost are recorded.

4. Expo- Petr o-License: - This section stores the details of the license
provided to each machines. A different agency provides this license. It must have

to be renewed after the validity is lost. This section stores the serial number, item
name, license number, tag number, last test, test type etc.

5. Lifting machines and tackles: - There are different lifting machines in
different location. These machines have to be tested and if any defect it is stored.
The machines are given a hoist no., location, last test, tested by, defect, next test
and remarks are stored.

6. Pressure vessel: - This section handles different machines, which handle
the substance of high pressure such as LPG, CHLORINE etc. It is very difficult to
handle these types of machines. It needs high security and to confirm whether the
equipment is running smoothly. It contains serial no., section, pressure vessel, last
test etc.

7. Mock-drill: - It is a section contains trained person to maintain the
security. If any accident occurs, the help of this person is supplied and reduces the
complexity of accident. An accident controller is the head of this section.

JOINT GENERAL MANAGER
(TECHNICAL)

TECNICAL DEPARTMENT

ASST GENERAL MANAGER
(TECHNICAL)

MANAGER (LAB) MANAGER R&D

DEPUTY MANAGER DEPUTY MANAGER
(LAB) (TECNICAL)

SENIOR SCIENTIFIC DATA COLLECTOR
OFFICER

SCIENTIFIC OFFICER STATISTICIAN

ASST SCIENTIFIC
OFFICER

LAB TECHNICIAN

9) TECHNICAL DEPARTMENT

Assistant General Manager (technical) is the head of this wing. This wing
functions as a third agency to the production and maintenance department. The
technical wing takes charge to research and development, Quality control,
Laboratory and technical services.

10) RESEARCH AND DEVELOPMENT

KMML maintain a fully equipped research and Development facility in the
area of Pigment and paint technology with a view to establish world- class
products and competitiveness. This excellent facility undertakes research,
development and product improvement. Scientists and Engineers continuously
pursue innovative technologies in the area of TiO2 pigment, quality improvement
and other allied products. The technical and sales service wing extends all helps to
customer in the field of applications and users.

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

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

2. Successfully developed an improved process of oxidation plant.

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

construction.

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

The following works are on progress:

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

2. Management of solid effluent

PROJECT DEPARTMENT

DGM PROJECT

MANAGER PROJECT

DY MANAGER PROJECT

PROJECT ENGINEERS

ASST ENGINEERS

DRAWING OFFICERS

11) PROJECT DEPARTMENT

Joint General Manager (Project) is the head of the wing. This wing is
engaged in the expansion program of the company. They are engaged in the
building up of new products etc. they also decide up on the future plans of the
company.

Some major projects on which they are working upon include:

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

2. A new synthetic rutile plant of capacity 1.3 lacks

3. A new 100 tone per day Oxygen plant

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

UTILITIES

Assistant General Manager (utility) is the head of this department. The
utilities consist of steam, compressed air and water. Two boilers having a capacity

of 33 tonnes/hr each and one package boiler of capacity 8 tones/hr supply the
steam. The compressed air for plant and instrument used is supplied at a pressure
of 8 kg/cm2. There are four tube well pumps supplying water treatment plant.

SWOT ANALYSIS
S-STRENGTH

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

2. Constant up gradation of technology.

3. Raw materials are found in. nearby areas

4. Availability of cheap and best quality raw materials. i.e. Mineral sand
consisting of illmenite, Rutile, Zircon etc.

5. The only integrated plant in the world having mineral separation plant,
synthetic rutile plant, Titanium dioxide plant and all are closely located in
one complex.

6. Profit making public sector undertaking with a total capital investment by
the government of Kerala.

7. The company has achieved a break through in the export market. During
the financial year 2011-2012 the company has earned the maximum
foreign currency among the chemical factories of public sector
undertaking in the state.

8. Technology perfected by internal research and development efforts.

9. Technological collaborations with the Russian Mining Company
ROSSBORN for the production of Titanium Sponge.

10.The proximity of infrastructure facilities such as seaport, Railway station
and International Airport is one of the greatest strengths of the company

W - WEAKNESSES

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

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

3. The internal control procedure relating to stores, raw materials including
components, plant and machinery, equipment and other assets and for the
sale of goods are not commensurate to the size of the company.

4. External/political/Governmental interference on company's day to day
affairs impairing corporate governance and professional management.

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

O - OPPORTUNITIES

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

2. Provision should be made for determination of unserviceable and damaged
stores, raw materials and productivity

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

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

5. Unexplored value addition sector like Titanium metal, Zirconium

compound

6. Kerala state being made better known to the outside world with the
expansion of tourism and infrastructure technical sectors.

7. Technical collaboration with ISRO in Titanium Metal production.

T - THREATS

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

2. Duplication chances by stockiest.

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

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

5. Mining policy of central and state government can allow small time
entrants to the sector.

FINDINGS
 As the global price for the product to coming down gross profit are
decreasing and net profit through out the study.

 The long term solvency position of the company is satisfactory.

 The upcoming of new mining companies of Titanium product will make
stiff competition on KMML.

 The inability of the management to control effectively the resistance raised
by the local people in some radical issues.

CONCLUSION
In the previous chapters, the business activities of KMML studies
comprehensively. The origin of the company and its undertakings is found out. It
has been found out that the Government is playing major role for prospering the
company. Manpower activities, welfare schemes provided to its employees and its
great play in giving various training programmes have been positively revealed.
The company is aiming at providing quality grades of TiO2 to its various
customers according to their wants.

The company is successful in increasing its production capacity from 22000
tones to 50000 tones and it is planning for its future. Dupont, USA is the

company's stiff competitor and company's marketing section keep tracks of its
products and demand and supply. The company has a good liquidity position. The
company is performing better in the recent years. The cordial and cooperate
relationship between the management and the employees is the secret behind the
success of this public sector company. All the departments in this organization are
working hand to hand thus bringing out the best results.

It may be included that the study has been done successfully keeping
the objective in mind. I was very much benefited by this training at KMML It may
be included that the study has been done successfully keeping the objective in
mind.

BIBILIOGRAPHY

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

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

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

 C.R.Kothari, "Research Methodology methods and Techniques",
Wishwa Prakashan, New Delhi

 Philip Kotler and Kevin Keller "Marketing Management

www.kmml.com

www.export-japan.com.inc

 Department Manuals

 Spreading Splendour (Monthly Newsletter from KMML)

 Company Brochures

 The KMML Standing Orders

 Annual Report 2009-2010



APPENDIX
ABBREVATIONS

KMML : Kerala Minerals and metals Ltd

Ti02 : Titanium Dioxide

ICICI : Industrial Credit and Investment Corporation of India

SBI : State Bank of India

SBT : State bank of Travancore

PF : Provident Fund

DGM : Deputy General Manager

CITU : Centre of Indian Trade union

INTUC : Indian National Trade Union Congress

RSP : Revolutionary Socialist Party

AGM : Assistant General Manager

AAO : Assistant Administrative Officer

APO : Assistant Plant Officer

AO : Administrative Officer

HRD : Human Resource Development

JGM : Joint General Manager

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