05-03-2010, 05:33 PM
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AN ORGANISATIONAL STUDY AT KERALA MINERALS AND METALS LTD.
SUBMITTED BY
REMYA.S
REG.NO:2887017
INDUSTRIAY PROFILE
Industries play a significant role in almost every economy but India context it is an important as oxygen for breathing. Industrial development has been accorded great importance in Indian planning. On account of industrial development there is increase in production, employment and national income.India is the second largest growing economy in the world. This is equally applicable to the Titanium Dioxide industry.
Titanium Dioxide pigment is authority white powder with high capacity, Brilliant whiteness, excellent covering power, and resistance to color change. These opportunities have made it authority valuable pigment for authority broad range of applications in the paint, plastic goods, inks and paper.
The pigment is manufactured by processing naturally occurring Titanium containing Rutile or Illmenite minerals. Rutile is an impure form or Titanium Dioxide, where as illmenite contains titanium combined with iron as authority compound oxide. Though common throughout the world, they are most readily exploited in Australia, USA, India and South Africa .
Titanium bearing minerals found in the coastal sands of the western Kerala coast and in the eastern region on Tamil Nadu and Orissa. The minerals sands on the 22km belt in southern Kerala is said to be one of he deposit. India today possesses the richest technology for the manufacture of Titanium Dioxide through the sulphate and chloride route.
The two public sector manufactures, TTPL (Titanium tetra chloride Ltd )and KMML have substantial capacity addition programmes. The capacity of TTPL is expected to touch 30000TPA by 2007 and that of KMML is expected to touch 100000 TPA by 2008, apparently, with the above capacities, both TTPL and KMML will produce Tio2 beyond the requirement of the country. Keeping this in mind, both these units have started tapping the global market.
Currently there four unit in India engaged in the manufacturing of Tio2 pigment (Rutile & Anatase) with a total combined capacity of 44560 mrtric tones per annum. These units are:
1)Kerala minerals and Metals Ltd Chavara, Kollam.
2)Travancore Titanium products Ltd, Trivandrum.
3)Kilburn chemical Ltd, Chennai.
4)Kolmark chemicals Ltd, Kolkata.
TITANIUM DIOXIDE INDUSTRY IN INDIA
The Titanium Dioxide industry is growing world wide. The Indian reserves of Illmenite and Rutile is expected to be around 6 crores tones. Beach reserve is also seen in Rathnagiri (Mahi), Ganjan (orissa) and Srikakolam (AP).The reserve in Kerala and Tamilnadu is around 25 million tones, there is about 20 million tones reserves in Orissa. This information therw right in to the possibilities of new manufactures and competitions in Titanium Dioxide pigment Industry in the Indian market with the increasing demand for the paints, rubber, plastic and printing ink etc. The arrival of new manufactures will be more in the near future. This will ultimately results in tight competition.
The demand of TiO2 highly depended on the finished products likes plastic, paint,rubber,paper,printing ink, etc. The demand for the high quality Titanium Dioxide will increase the profitability of the business.
COMPETION IN THE INDUSTRY
The Titanium Dioxide Rutile grade is produced only by KMML in India.KMMl has to face completion frome world TiO2 producers due to liberalization and globalization. The major competitors are DUPONT(USA),MILLANIUM (Germany),ISHIARA (Japan),and TIOFIN(Netherlands) KEMEGA( Finland),MONITOX(USA) ,KERSEMEGREE(USA),etc.
COMPANY PROFILE
COMPANY PROFILE
The KMML was established by a private entrepreneur in 1932 as F.X. Peraira and sons (Travancore) Pvt. Ltd. During 1956 this concern was taken over by the state govt and was placed under the control of its industries department. The units were converted as a limited company with effect from 1.4.1972 in the name of Kerala Minerals and Metals Ltd.
India is one of the pioneers in the field of mineral sand industry in India Kerala Minerals and Metals Ltd( KMML) is a fully owned kerala govt Enterprise. There are about 2000 employees in the company at present that are helping KMML to grow.
KMML, a fully owned Kerala Govt Enterprise is the worldâ„¢s first fully integrated Titanium Dioxide plant .Since its inception, KMML has made an incredible mark in the field of mining, mineral processing and manufacturing . With the state of art factories at Shankaramangalam and Kovilthottam ,KMML has won national acclaim for its impressive performance. KMML is the Indiaâ„¢s first and only manufacturer of rutile grade Titanium Dioxide by Chlorine route. KMML products are marketed under the brand name KEMOX. KEMOX RC 822 is a multiple application pigment which is in great demand in the world market. KMML also produces other grades of Titanium dioxide pigment like RC 800 PG, RC 800, RC 813, and RC 808.Product range includes Titanium Tetra chloride, Illumenite, Rutile, Leucoxene and sillimanite which are the basic raw materials for variety of industrial uses.
KMML also manufactures iron oxide bricks used for building purposes. The production of these bricks from waste iron oxide is an in-house development. Close access to one of the worldâ„¢s richest beaches helps KMML retain its leadership. KMMLâ„¢s Titanium pigments are reputed for their high degree of gloss, tint retention capacities and ease of dispersion. These qualities give KMML affordable ident These qualities give KMML affordable identity in this industry. KMML is certified ISO 9002 in the year 2000 for implementing world class quality standards.
According to the corporate plan, by 2007-2008, the domestic revenue generation will be less than 30 percent. They have already proved their capacity to produce internationally adaptable quality product at competitive prices.
The present global demand of Tio2 is a 50 million tones, which is produced by 71 companies around the world. Of this, 29 million tones of Tio2 is produced by the chloride route by 26 companies; he remaining 21 million tones are produced by 45 companies through the sulphate process. This it is a clear indication that in the global market, the chloride technology products are most in demand.
To increase its presence in the international market and counter the import competition, KMML is all set to expand its Tio2 production capacity. The capacity increase will move in a phased manner to 45000 tones to one lakh tones. To achieve this, capacity of the mineral separation (MS) plant is being raised from present 50,000 tones to two lakh tones of illmenite. Besides a new MS plant, it is planning set up a 1.3 lakh tones synthetic Rutile plant.
As per current estimate, the first phase expansion would involve and investment of 150 crore while the entire expansion programme would cost an estimated Rs.750 crore. The entire expansion process is planned without any imported technical know-how or any major external borrowings other infrastructure. The company has to deal with fierce competition in the international markets as well as in the domestic market with import duties coming down every year.
HISTORY OF KMML
The KMML was established by a private entrepreneur in 1932 as F.X Pereira and sons (Travancore) Pvt Ltd. Around the year in 1955 the company met with heavy financial stringency and huge tax average that they could not afford. During 1956 this concern was taken over by the state govt and was placed under the control of its industries department. The industrial development of kerala runs the company from 1956 to 1972 under the name of M/s .F.X. peraira &Sons Pvt Ltd in the month of April 1972 the govt of Kerala took over all the assets and liabilities of the company and converted as a limited company and rename as The Kerala Minerals and Metals Ltd. Thus the KMML was started and registered in the year 1972 .
Initially the company had only one unit know as ËœMineral Separation Plantâ„¢. In 1974 the company received intent for the production of Titanium dioxide (Tio2) pigment using chloride process. In 1976, KMML registered its second nit known as Titanium dioxide pigment plat. Its construction started only in 1979 and total capital cost was Rs.144 crore. The plant was commissioned in December1984. KMML become the first and only integrated Titanium dioxide plant in the world.
KMML was commissioned in 1984 it was not able to 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 ËœTurn Aroundâ„¢. A strategy was planed and implemented with the whole hearted support of the workforce during the year 1991-1993. It 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.
EMPLOYEE STRENGTH
There are about 210 officers and 1122 wrokmen in KMML. The total strength is 1332.
TECHNICAL COLLABORATION
LITY
1. M/s Kers MC Gee Chemical Corporation of USA
2. M/s. Bendict Corporation of America.
3. M/s. Woodall Dukham of UK
QUALITY POLICY
ISO-9001 Quality Management System
KMML was certified for Quality Management system ISO-9001:9004 in June 2000 and was rectified and upgraded to ISO-9001:2000 Quality management system (QMS) in November 2003 for its TP Unit.
ISO-14001-Environment Management System
Bureau Veritas Quality International (BVQI) issued the Certificates with accreditation Iogo UKSA(United Kingdom Accreditation Service) and RVA (Dutch Council for Accreditation).These systems has helped KMML improve the environmental performance goals, monitor and measure effectiveness, correct deficiencies and problems,ensuring authority good house keeping and review its management system to promote continuous improvement.
OHSAS-18001-Safety Management System
Workplace Safety is emerging as one of the Key risk management and regulatory compliance focus areas among many global companies. As authorith result of this trend, traditional workplace safety compliance systems, which were designed to be point solutions at authority plant level, are giving way to enterprise wide safety management systems. OHSAS 18001 is authority consensus standard standard developed in 1999 by an independent group of national standards bodies and certification bodies.
PLANT CAPACITY
The initial installed capacity of the Tio2 pigment plant was 22,000 MTPA.
POLLUTION CONTROL
KMML has elaborate Pollution Control system with respect to both water and air pollution. The waste (acidic) from Illmenite Beneficiation Plant is sent to Effluent Neutralization Plant (ENP). ENP consist of a Primary Neutralization Tank (PNT) and Secondary Neutralization Plant (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 day solution from setting pond of 2500 m3 capacity where the balance solids are allowed to specification stipulated by Pollution Control Board authorities is pumped in Arabian Sea.
All gases from Chlorination, Oxidation, Illmenite Beneficiation Plant and Acid Regeneration Plant are scrubbed water or line or caustic solution to absorb the toxic gases diluted with enough fresh air and only let out to the atmosphere through tall slacks.
These measures taken create an eco-friendly image by KMML.
NATURE OF THE PRODUCT
Titanium Dioxide Pigment(Rutile) Paints, Printing inks, Plastics, Paper, Rubber textiles, Ceramics
Titanium Tetra chloride Rectile hrade titanium dioxide Pigment, titanium Sponge or Metals , Titanium oxychloride.
Ilemenite Synthetic Rutile, Welding electrodes Titanium tetra chloride, Titanium dioxide pigment , Gerro titanium Allowys, Titanium salts
Leucoxene Welding electrodes, Titanium Tetrachloride, Titanium dioxide pigment, Tianium components.
Zircon Ceramics,Zirconium,Chemicals, Foundaries, Zirconium metals,Nuclear technology.
Sillimanite High temperature refractory, ceramic industry.
Monazite Rare Earth Industry, Nuclear technology.
Ironoxide bricks AS building materials.
COMPANY VISSION AND MISSION
VISSION
KMML to be a world-class producer of mineral sand based value added products.
MISSION
1) To become the nodal agency for promoting and establishing mineral based industries in the state to ensure value addition and exploitation of the mineral based industry.
2) To develop adequate supply base for the services and utility for development of the mineral based industry.
3) To creat more awareness about corporate social responsibilities for chemical industries in the state.
4) To become the leader in controlling green house gas emissions so as to promote the concept of green earth.
THE MAIN OBJECTIVES OF KMML
1) To exploit the mineral wealth abundantly available in the coastal belt.
2) To manufacture value added product like Titanium Dioxide and Titanium metal through chloride roate Technology.
CO-PORATE OBJECTIVES
1) Large sale generation of employment in the stste.
2) Overall growth &development of the local area in particular and the state in general.
MILESTONE.
1932 KMML was established by private enterprises under the name F.X. Periera & Sons Pvt Ltd.
1956:-Periera & Sons Ltd was took by the Govt of Kerala placed the under the control of this industries department as F.X. Periera minerals.
1972:- F.X.Periera minerals & Sons PVT Ltd final converted as a limited company under the state govt.
1974:-The convruction work of the TiO2 pigment unit Sangara Mangalam was started.
1984 :-The TiO2 pigment unit In Sangara mangalam was commissioned
1993:-The company declared as a sick unit due by BIFR & IDBI was appoimted as operating agency for formatting rehahilitation package for the company.
1998:- company installed in conel tube instead of silica tube in the oxidation plant as a measure to are come.
1999-2000:- It was the 1st time that the company had achieved 100 years capacity utilification.
2000 :- The company got ISO 9002 certification.
2002:-2003 :-The company acquired the export house status for the excellence in exporting.
2004:-Commissioned new DM plant and added two more digesters in IBP.
2005:-world class quality management system like ISO 14001 and OSHAS-1800. 2006. Foundation laid for Titanium sponge plant.
2006:-Foundation laid for Titanium sponge plant.
2007:- Commissioned recovery cyclone
2008 :-Commissioned new ETP sledge & oxide plant.
ORGANISATON STRUCTURE
A business organization has to perform a number of activities in order to run itself. In functional form of departmentation an organization group function or activities into primary departments. The application of functional form of departmentation means grouping activities into departments of Production, Marketing, Human Resource development and finance.
The chief Managing Director is the top official in the Management of KMML. KMML has a separate department head for each department. The various functional departments of KMML are:
1) Material.
2) Marketing.
3) Production.
4) Maintenance.
5) Utility.
6) Finance.
7) Personnel & Administration.
8) Fire & Safety.
9) Data processing.
10) Technical.
11) Research & Development.
ORGANISATION CHART OF KMML
Board of Director
Chair man
Managing Director
Genera l Manager (Finance)
DGM (Material manager)
Dum (material)
DGM
marketing
IGM(Time)
Manager (Internal Audit)
Manager (Finance)
Manager Welfare
Manager (HRD)
Chief Medical Officer
DGM (Profit)
DGM
(Production)
DGM (Maintenance)
AGM(Profit)
AGM(IBP)
AGM(ARP)
AGM(PPP)
AGM(Mechanical)
AGM(Mechanical)
Company
secretary
IGM(personal & administration)
FUNCTIONAL DEPARTMENTS
PERSONNEL AND ADMINISTRATION DEPARTMENT
ORGANIZATIONAL CHART OF PERSONNEL DEPARTMENT
General Manager
Joint General Manager
Manager
(HRD)
Manager (Welfare)
Chief Medical officer
Legal officer
APO
Deputy manager security
Security Officer
AO(Time)
FTH
AAO(Canteen)
Male Nurse
AAO
AAO(Time)
Attainders
Supervisor
PERSONNEL AND ADMINISTRATION DEPARTMENT
Personnel Department s concerned with the peopleâ„¢s dimension in organization. The sincerity and dedication of the employees in KMML is a major success factor. With a full-fledged Human Resource department, regular training and refresher courses are part of the company life. Apart from skill betterment, these courses inculcate quality consciousness, safety and awareness contributes to personality development. There are around 1132 employees in the company. Join General Manager (Personnel and Administration) is the head of the department.
FUNCTIONS
The major functions of personnel department are as follow:
1) Recruitment and selection.
2) Training and development.
3) Promotion and Transfer.
4) Retirement and superannuating.
5) General Administration.
6) Public Relation.
7) Labour Welfare Activities.
8) Disciplinary proceedings etc.
RECRUITMENT AND SELECTION
The company adopts different methods of recruitment of the staffs. For this KMML gives advertisement in Malayalam and English newspapers publishing from Kerala and other states of south India.
SELETION
Various tools and techniques are adopted by the firm for the selection of candidates for various categories of post. Application blanks are employed for extracting the detailed bio-data of candidates. The company calls the eligible candidates for interview. Practical and written test are conducted for selection to technical post. For the post of clerical staff, written test and interview are conducted provided the number of candidate are very high, it is compulsory that for all vacancies there must be medical examination to check the physical fitness of candidates. Being a public sector undertaking, the selection of candidates is subject to communal reservation policy of the state government.
TRAINING AND DEVELOPMENT
KMML gives a lot of importance for its human resources. The company believes that the success depends upon providing necessary training to the employees. Training is provided to each and every employee in the organization. The full responsibility of the training and development at KMML rests on the shoulder of personnel and Administration Department. The department head identify the training needs of the employees identified by the supervision in a specified format.
KMML seeks training needs identification in the specified form from all functions responsible to provide such identification on annual basis before 15 March every year for preparation of annual training plan. In case a training need for an individual crop up suddenly, the concerned department head prepares the training needs identification form and forward it to administrative officer who plans for the training. While identifying training needs, the respective department or selection identifying training needs of personal considerations.
Members present positions.
Training already acquired.
New skills to be imparted.
Qualification required.
Motivation or communication required.
The details of qualification, experience and training undergone by the individual employee are maintained in the personal bio-data record. The annual training plan its proposals are authorized by the Managing director and technicians.
PROMOTION
Promotion is the movement of an employee from a lower position to another position with a better pay, and responsibility. Every organization chances of promotion chances of promotion came up occasionally.
Employeesâ„¢ will considered for promotion only if they have qualification and experience in the respective field. Grade II worker in the MS unit who completes 8 years of continues service will be automatically promoted to grade I. Promotion posts will be notified with the plant and the officer of the unit, giving educational qualifications and experience. The application received will be screened by the personnel department. Every employee promoted to a higher post will be on probation in that post for a period of one year
Four factors are considered for promoting an employee:
1) Seniority (25 marks)
2) Test/Interview(0 marks)
3) Attendance(20 mark)
4) Performance(15 marks)
Employee who secure less than 50% score of marks in tests and interview are not considered for promotion.
All vacancies in the post, in the level of shift in charge equivalent and below in the pigment until shall be filled up by promotion subject to availability of suitable workman. The workman shall be eligible for promotion on completion of four year of minimum service in a particular grade or post in Titanium unit.
50% of vacancies in the post of Assistant engineer or guidelines subject to availability employees in concerned field of categories. Actual promotion shall be drawn up by the promotion committee and he is empowered or delegated with power to the effect.
PERFORMANCE APPRAISAL SYSTEM
When an employee is transferred in promotion from a post during the course of a colander separation performance report must be prepared for period to such promotion or transfer. The personnel appraisal forms in respect of employees in various section are being separately sent Human Resource development department to respective head of the department for getting the report completed and forward the same to the personnel manager with remarks of assessing the reviewing officers.
TRANSFER
There is only inter departmental transfer in the company.
RETIREMENT OR SUPERANNUATION
KMML being a Kerala government undertaking company, the retirement or superannuation is fixed at the age of 58.
REMUNERATION IN KMML
In KMML at present, time wage system is adopted. Workers are paid at hourly, daily and monthly wages. Permanent workmen who have completed eight years of service are allowed higher grade.
WAGE
Wages is carried out by the Government wages and safety revision will be made in every five years.
There are four trade unions in KMML
1) Titanium complex employees union(RSP(B))
2) Titanium complex employees congress (INTUC)
3) KMML Titanium employees union(CITU)
4) KMML Employees union(STU Muslim League)
The middle level officers of KMML have two associations. They are:
-KMML Officers Association
-KMML Officers Federation
WORKMEN CLASSIFICATION:
1.Permanent Employees:
There are about 215 officers and 960 non technical staffs working in the Tio2 pigment plant as permanent employees.
2.Employees Engaged On Contract Basis:
These employees work on contract for a limited period of time say one year or six months on specific terms and condition fixed by the company. They have no preference for future employment in the company.
3.Temporary or seasonal worker:
These workers are employed when the work load is more. On certain season due to the increase in demand, more work forces are needed to meet the production. In such cases temporary workers are engaged. The services of such employees are dispensed with as and when the need is satisfied.
4. Casual labour:
Casual labours 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 employee when vacancy arises.
5. Apprenties:
Apprentices work for a period of one year as part of their training programmed as per apprenticeship Act.
WORKING HOURS
The daily working of the company is on shift basis. There are three shifts for plant and general shift for administration. The timing is as follow:
-A Shift-6 am to 2 pm.
-B Shift-2 Pm to 10 pm.
-C Shift-10 Pm to 6 pm.
-General-9 am to 5 pm.
WAGE STRUCTURE
Basic wages for each category of workers are fixed as per agreement the management and the workers representative. The items covering under wages are follows;
1) Basic pay
2) Dearness Allowance
3) Variable Dearness Allowance
The worker are given specified amount as basic wage as per the agreement. The agreement is valid for four years.
WELFARE ACTIVITIES
1. Bonus:-
Employees who are drawing more than Rs.3500/- per mount are eligible for bonus almost all the employees working here are eligible for bonus irrespective or casual worker.
2. Provident fund:-
Introduced in 1956 and administered by a trust. Here both the employer and the employee have to continue 12% each of the basic pay, where eight and one third percent is transferred to pension fund.
3. Gratuity:-
Minimum amount payment payable as gratuity is Rs.3500 Employees having continues service of the year are eligible for gratuity.
4. Employees State Insurance:-
All the employees working here come under Employees State insurances Scheme.
LABOUR WELFARE ACTIVITIES
The allowances provided by the company for its employees are as follow:
1. House pent Allowances:-
Workmen of the company shall be entitled to house rent allowance @ 10% of the basic pay effective from 1. 1. 1997.
2. Conveyance Allowances:-
Up to Rs.100 is given as conveyance allowance as per Memorandum of Agreement.
3. Shift Allowances:-
Employees working A, B and C shift are paid Rs 200 per month as shift allowances.
4. Washing Allowances:-
Washing Allowance is Rs.40 per month work for at lest five day attendance is necessary.
5. Cash Handling Allowances:-
Rs.40 per month is paid as cash handling allowance to employees who look after the duties of the cashier.
6. Milk Allowances:-
Working having 15 days of attendance is eligible for milk allowance amounting up to Rs. 75 per month.
7. Stitching Allowances:-
Employees are given the stitching allowance as follows:-
¢ Uniform for gents “Rs.50
¢ Blouse and apron-Rs.30
¢ Over coat “Rs.75
8. Chlorine Tanker Duty Allowances:-
Rs.40 per mount is paid as these allowances.
9. Acting Allowances:-
Operators grade A,B and C is paid Rs.20,Rs./ 15, Rs. 10 respectively are as paid as these allowances.
10. Educational Allowances:-
Education allowances are granted for up to two children. Up to SSLC education allowance of Rs.50/ month is given to each child. Course, which demand minimum qualification of S.S.L.C other than plus two Rs.70 per month each, for degree courses Rs.80 per month each, and for professional courses Rs.100 per month each.
11. Attendance Bonus:-
Employees who attain attendance of:
A) 80 to 90% are given a bonus of Rs. 100/-
B) Greater than 90% are given a bonus of Rs.110/-
C) 100% are given one wage and DA
12. Housing Loan:-
For small works of residential building such as extension are repair works loans are given to Rs. 1.5 lakes and a maximum amount of Rs.3 lakes can be given for construction of new residential buildings.
13. Vehicle Loan:-
For two wheelers amount Rs.40000 are given as vehicle loan and for officer loan amounts to Rs.1 lake.
The other benefits include:-
1) Retirement Benefits
2) Death Relief Fund
3) Medical Facility
4) Financial Aid to prolonged Treatment
5) Subsidized Canteen facility
6) Interest Subsidy for Housing Loan
7) Transportation Facility
8) Recreation club
PERSONNEL RECORD
KMML maintains a personnel record for its employees. It is a file consisting for all the details regarding the employee and all the data relevant to him
RECORDING OF THE ATTENDENCE
The electronic punching system is adopted in KMML. Every employee had to punch the card on entering the work.
TIME KEEPING AND TIME BOOKING
A separate wing is concerned with time keeping and time booking in the company. With the help of the punch card this section keeps an attendance register. Main function of this section is attendance recording of leave, late coming, early going lost hours, overtime, shift allowance, loosed wages due to absence, wages due to work holidays.
MATERIALS DEPARTMENT
MATERIALS DEPATMENT
All functions relating to purchase and storage of materials for the company is carried out by this department. This department is heated 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 Rs 25000/- 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 the 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 though the store. If the materials are out of stock, the storekeeper informs the purchase section through and indents form.
3. Selection of suppliers:-
The next function is to select the supplier to whom the order is to be send. The company places a public tender notice for the procurement of raw materials .On the basis of the vendor submits 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 than 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 vendors . 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 goods and quotation reception:-
On receiving the materials from the vendor, a visual inspection is conduced. If there is any discrepancy between the party advice copy and received copy, a discrepancy is prepared and if there is any damage report is prepared.
Item below Rs.500/- call for single quotation. Items above Rs.500/- and below Rs50000/- are call for minimum three quotations from important manufactures, dealers and stockiest. Items above Rs50000/- call open tenders.
Sanctioning Authority
Purchase order cost Authority
Below Rs.50,000 DGM(Maintenance)
5-10 Lakes GM(Technical)
Above 10 Lakes MD(Tender committee)
Above 25 Lakes Board of Director
Main Raw Materials and suppliers are given below:-
Raw Materials Suppliers
HCL ,CI ,Caustic Soda Lye Travancore Cochin Ltd
LPG BP
Furnace Oil Indian Oil ,BPC,HPC
Sulphuric Acid Binani Zink, FACT
NPF Petroleum Coke Meeankshi Chemicals
Aluminum Chloride Bismi chemicals
Aluminum Tri Hydrate Indian Aluminum Company
Succeenic Acid Sivam Enterprises
KCl Samudra Chemicals
Tri Isopropanol Amine Dove Chemicals
Trimet Geo Specialties, USA
STORE SECTION
Store section deal 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 FUNCTION
Various documents are prepared by the store section for the proper functioning of the department. The documents maintained are as follow:-
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 good:-
On receiving any materials and preparation of SIB inspection request is send to the concerned technical officer for technical evaluation and prepared on this basis.
3.Store received note:-
After the preparation of SIB and inspection of goods or materials, Store 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 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 store may be returned. In that case Material Return Note (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.
BINCARD
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, reorder level, etc coded number and name of materials.
INVENTORY CONROL 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.
INVENTORY CONTROL TECHNIQUES
1. ABC Analysis
2.VSN Analysis
3. FSN Analysis
4. EOQ
MARKETING DEPARTMENT
ORGANISATION CHART OF MARKETING DEPARTMENT
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 companyâ„¢s product. There is no separate department for sales and marketing management also perform these functions. The marketing section keeps detailed report about customersâ„¢ 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 firmâ„¢s views, highlights customerâ„¢s consciousness. Maintaining close contacts, they are perfectly aware of customerâ„¢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 TiO2 (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:-
1) 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 TiO2. 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 TiO2 is fixed by KMML. The price is fixes by Chairman and Finance Secretary of the Government of Kerala. The price is periodically revised due to market fluctuation.
Selling price of all grades of TiO2 (Rutile Grade Pigment)
= Rs. 110000 + 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 TiO2 at national and international level. The company also provides discount scheme for its customers.
PLACE OF DISTRIBUTION
Marketing channel decisions are among the most important decision that management faces. A companyâ„¢s channel decision directly effects every other marketing decision. The firmâ„¢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:-
1) Direct Supply:- Direct Supply to the actual customers who require seven metric tones or more at a time. By this policy KMML, have estimated the middlemen and it is easily adapted to any circumstances.
2) Supply through Stockiest:- Supplies to small sectors are done through stockiest appointed by the company in all major cities. Company fixes prices for its products and the stockiest are responsible to see the pelts at fixed price.
All the grades of TiO2 pigment produced in KMML come under the category of industrial goods; TiO2 is mainly used in paint industry, textile industry, printing ink industry etc. The total customers can be divided in to three types:-
Major Customers
Stockiest
Other Customers
CUSTOMERS
Paint industry contribute large customers of TiO2, other largest customers include such industrial as paper, plastic, polymester. 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 20% of their production. It has plans to raise this to 50% by 2005.
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 TiO2 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 COMPLIANTS
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
1) 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 THE 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 ar eto 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.
Year Production in m/ton Sales in m/ton
1996-97 18042.000 16150.475
1997-98 15377.775 18011.500
1998-99 10115.650 6050.450
1999-2000 14486.550 14707.550
2000-01 19317.000 21526.850
2001-02 21816.000 23501.000
2002-03 23521.01 25230.000
2003-04 24251.610 25851.000
2004-05
2005-06
2006-07
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 10 years.
MARKET RESERCH ACTIVITIES OF KMML
MAIN OBJECTIVES
1) To find out the general impression of KMML products in the titanium dioxide marketing of India.
3) To ascertain whether demand exists in the Indian market. If we under take the proposed expansion of 6000 million tonnes.
4) Equivalent grade needed in market.
New product development
A new hydrophobic plastic grade pigment RC804 was developed by the effort of in house 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.
FINANCIAL DEPARTMENT
ORGANIZATIONAL CHART OF FINANCEDEPARTMENT
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 companyâ„¢s goalâ„¢s is also an important function of the finance department.
Accounting Policy of KMML
1) Convention
The final statement 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 mont
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.100000/- 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 he 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 ATM 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 Accounting
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 Generalâ„¢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 TiO2 Pigment Minerals (llmenite)
2000-01 22815 10823
2001-02 25426 11647
2002-03 25612 17945
2003-04 25921 19138
2004-05 26859 21555
During the year 2002-2003 Company has achieved a record production of 25612 MT as against 25426 achieved during the previous year. Similarly, the production in the MS unit has also increased from 10823 MT to 17945 MT. This is mainly because of adding two more magnetic separators in the old plant. Modernization of MS plant o\is nearing completion and when the same is completed anticipated production would be 45000 to 50000 MT per annum
FINANCIAL RESULTS
Financial results of your company for the year under review and previous year are given below.
Particulars 2006-2007
(Rs. In lakhs) 2005-2006
(Rs. In lakhs)
Total gross turn over 32854.54 32304.14
Gross profit before interest and depreciation
3079.60
2594.06
Profit before tax 2243.24 1782.05
Profit after tax and prior period adjustment
1121.07
1115.27
Transfer to general reserve 92.79 0.00
Capital employed 43851.73 43075.03
Internal generation 1885.43 1601.24
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH 2007
Particular As per
Schedule 2006-2007
(Rs. In lakhs) 2005-06
(Rs in Lakh)
Income
Gross sales
Less:Excise Duty
Net Sales
Other Income
Stock Differential
O
P
32854.54
3280.05
29574.49
1776.80
2959.55
32304.14
3337.07
28967.07
1483.14
1008.46
Total 34311.02 31458.67
EXPENDITURE
Manufacturing Expenses
ayments and Benefits Employees
Administrative selling and
Other Expenses
Interest and Finance Charges
Depreciation
rofit Before Tax
Less: Prior Period items
Doubtful advances
Profit after Prior Period
Adjustment
Less: Provision for Current
Taxation
Less: Provision for
Deferred Tax
Less: Provision for FBT
Less: Prior year adjustments
relating to Income tax
rofit for the year
rofit & Loss account Balance
Brought Forward
Amount available for appropriations
roposed Dividend
Tax on Dividend
Transfer to Reserves
Surplus Transferred to Balance
Sheet
Earnings Per Share
(Basic and Diluted)
Refer Note 27 0f Schedule T
K
L
M
N
R
Q
S
23859.88
6783.54
583.00
72.00
764.36
2243.24
7.67
158.50
2077.07
900.00
116.08
56.00
0.00
1237.15
23662.66
24899.81
309.33
52.57
92.79
24445.12
39.99
22085.60
6165.78
613.23
73.38
738.63
1782.05
8.78
0.00
1773.27
625.00
0.18
33.00
252.48
862.61
22800.05
23662.66
0.00
0.00
0.00
23662.66
27.89
Significant Accounting Policy
Notes forming Part of Accounts U
T
BALANCE SHEET AS AT 31 ST MARCH 2007
Particulars As per Schedule 2006-2007 (Rs. In lakhs 2005-2006 (Rs. In lakhs)
SOURCES OF FUNDS
Share holders funds
Share Capital
Reserves & Surplus
Deferred Tax Liability
A
B
C
3093.27
40575.71
182.75
3093.27
39700.46
298.83
Total 43851.73 43092.56
Application of Funds
Fixed assets
Capital work in progress
Investments
Current assets
Loans and Advances
Less : Current Liabilities
Less : Provisions
Net Current Assets
Miscellaneous expenditure
(To the extent not written off or adjusted)
Significant Accounting Policy Notes forming Part of Accounts
R
F
G
H
I
D
E
J
U
T
22531.31
18968.74
41500.05
5895.47
12554.58
18450.05
11746.84
9037.29
17.60
23050
0.00
27130.94
18975.96
46106.90
6577.63
11775.42
18353.05
10157.90
5163.18
0.10
27753.85
17.53
TOTAL 43851.73 43092.56
WORKING CAPITAL
Year Current Year Loans and advance Current liability Provision Working capital
2004-05 29187.84 23718.91 4183.87 16521.69 32201.19
2005-06 27130.94 18975.96 6577.63 11775.42 27753.85
2006-07 22531.31 2004-05 29187.84 12554.58 23050.00
Working capital refers to that part of the firmâ„¢s capital which is required for financing short term or current asset such as cash, marketable securities, debtors and inventories. It is a measure of both a companyâ„¢s efficiency and its short term financial health. If the working capital is positive it means the company is able to pay off its short term liabilities. If it is negative company is unable to meet its short term liabilities with its current assets. If a companyâ„¢s current asset 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
PRODUCTION DEPARTMENT
ORGANISATION CHART OF PRODUCTION DEPARTMENT
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 18-20% Hydrochloric 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 vapor 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 (TiCl4). 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 TiCl4 liquid, which is 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 vapor. 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 M/s 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. River sand
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.
BASIC PROCESSING STEPS
Beach sand
Mineral separation unit
Illmenite Rutile Leucoxene Zircon Sillimenite Monazite
60% TiO2 95% TiO2 75% TiO2 65% TiO2 65% TiO2 57% TiO2
TiO2 Pigment Unit
Illmenite beneficiation spent acid Acid Regeneration
Plant (IBP) Plant (ARP)
Synthetic Rutile Hydrochloric acid Iron Oxide
Chlorinator Brick
