binani zinc ( ost )

Binani Zinc Ltd, Edayar

CHAPTER1: INDUSTRY PROFILE

1.1) ZINC

Zinc is essential for life. All living organisms need zinc as an important micro nutrient.

Zinc also imparts life-enhancing properties to other materials like steel. Thus modern

civilization needs zinc in a broad range of applications in construction, health, transport,

infrastructure, pharma etc. Zinc is also expected to play a vital role for a sustainable

future.

1.2) OVERVIEW

Zinc is considered to be the fourth most important metal used in the world following

steel, aluminium and copper. This metal is primarily used in the steel industry for

galvanizing process. The other uses include used in making coins and pennies, used in

die-casting in automobile industry, making battery container parts, used as a substitute to

tin and lead pipes, ingredient in water colors and paints, activator in rubber industry etc.

Also because of the fact that zinc does not corrode due to the non-acidic atmospheric

corrosion, it makes the metal worth to use in for extending the life of building structures

and modes of transport. The metal also comes in good use as a fungicide, herbicide and

rodenticide.

Zinc is extracted from zinc ores mostly sphalerite, zincite and smithsonite and the world

mine production of zinc concentrate sums up to around 10008000 tons annually. The zinc

concentrates are then used to produce the zinc metal and around 10319000 metric tons of

metal is produced per year. China is the largest producer country of zinc in the world in

context of both metal and concentrate production.

1.3) USAGE

One metal that is showing a definite potential for a long lasting strong market is zinc. It is

a rapidly growing area and it should be watched in the immediate future as production is

expected to greatly be increased on account of demand. The need for zinc today is ever

increasing as nations around the globe become more developed. It is used in many


industries and ways to extract it are constantly being enhanced. Its main use, about 50%,

is in the automotive industry where it provides anti-corrosion properties to keep cars from

rusting. It is also used in the construction industry (about 20%) for the same purpose.

Other industries that use this element in abundance is the steel industry, where it enables

iron to become stainless steel, die-casting accounts for another 15%, and other fields

include rubber, cosmetics, art, batteries, and pharmaceuticals. Putting it all together - it

means that the demand for zinc is high and it will continue to be. New contracts have

been made, amounting to millions of dollars, just for zinc in the production of new

batteries for military use.

Zinc mining is at an all time high and plans are being made in India, Africa, Australia, the

United States and other places to greatly increase production - they can't get enough to

keep up with the demand. New mining methods are being experimented with in Africa to

be able to obtain it even faster.

1.4) CONSUMPTION OF ZINC

The world consumption of zinc annually totals up to around 10774000 tons. The three

major nations arising the highest demand for zinc are

China

USA

Japan

1.5) MAJOR PLAYERS

The major zinc players in the world market are Canada and China. Though china was a

net exporter of the metal as it is the maximum zinc producer but its domestic

consumption demand doesn’t allow the country to take a lead in the world exports. The

major exporter countries of zinc metal along with their export figures are

Canada (712000 metric tons)

China (472000 metric tons)

Australia (443000 metric tons)


Korea (243000 metric tons)

Netherlands (210000 metric tons)

Finland (208000 metric tons)

Mexico (166000 metric tons)

France (143000 metric tons)

Norway (133000 metric tons)

Japan (95000 metric tons)

Spain (79000 metric tons)

The world exports of the zinc metal have been constantly decreasing and as there is a

deficit in the world market now, the imports of the metal have become more than the

exports done in the world. The major countries that import zinc with their import figures

are:

United States of America (878000 metric tons)

China and Taiwan (304000 metric tons)

Germany (231000 metric tons)

Belgium (215000 metric tons)

Italy (205000 metric tons)

Netherlands (199000 metric tons)

Singapore (148000 metric tons)

France (127000 metric tons)

Korea (110000 metric tons)

United Kingdom (105000 metric tons)

China (69000 metric tons)

The prognosticators are expecting a solid market for investments for many years down

the road. China and other Asian countries are working hard to increase their supplies of

zinc for their growing needs. Various funds are even getting into the hot zinc market.

This definitely looks like a growing strong market for you to invest in - while there is still

much growth soon to come.


1.6) ZINC PRODUCING COUNTRIES

As mentioned above zinc has been produced in the world for quite a along time and today

also the zinc ores are being mined in more than 50 countries of the world. The pattern of

zinc mine production in the world is not a concentrated pattern as there are over 266

mines indulging in the extraction of zinc but only around 19 mines are able to stretch

their production over 100000 tons per annum. 80% of the zinc mines fall under the

category of underground mines, 8% relate to the category of open mines and the

remaining are a combination of both open and close mines. The total mine production of

zinc ore in the world accounts up to around 10008000 metric tons with 64% share held by

the underground mines. The major countries engaged in the zinc mine production are

China

Australia

Canada

Peru

United States of America

Namibia

Ireland

Sweden

1.7) PRODUCTION OF ZINC IN INDIA

India was one the first countries that started the process of extracting and smelting zinc.

Since that time, the country is producing this metal and is one of the oldest countries to

do that. Though, India is not a leading player in the production zinc but it is moving in

the direction to get self reliant in this context. India has approximately 4.3% share in the

total zinc smelter capacity in the Asia pacific region. The largest company, which was

indulged in the production of zinc, is a public sector company named Hindustan Zinc

Limited. But now, ever since the company got privatized, the Indian industry is

completely in the hands of the private sector. It can be said that the zinc industry in India,


after privatization, is heading towards a major expansion programme. The major zinc

mines in India which were under the control of the company are

Rampura Agucha mine

Rajpura Dariba mine

Zawar mine

The smelting plants in India engaged in the production of zinc metal are

Chanderia Lead Zinc Smelter (CLZS) – Rajasthan

Debari Zinc Smelter (DZS) – Rajasthan

Vizag Zinc Smelter (VZS) – Andhra Pradesh

Binani Zinc Smelter – Kerala

As India was one of the first countries to gain the knowledge of extracting zinc from zinc

ores and start the production of zinc metal, it should have been an important player in the

world zinc market but this is not the current situation. India’s reputation regarding zinc is

not significant as it just produces a small share of the metal in the world’s production and

is not able to satisfy its domestic consumption demand making it a net importer of zinc.

Zinc production in India was in the hands of the government initially as all the operations

in India relating to the metal were in the hands of a public sector company – Hindustan

Zinc Limited. It was the biggest company in India, which took care of zinc extraction and

its smelting process. But in April 2002, this company was privatized in favor Sterlite

group and after that the Indian industry is in the hands of private sector completely. The

current Indian demand for zinc stands at around 3.5 lakh tons that is fulfilled with the

help of domestic production and imports too. About 70% of the Indian demand comes

from the galvanizing sector. After privatizing the zinc sector it is expected that by 2010

the country would become self-reliant to satisfy the domestic demand. After that, India

may transform into a net exporter of the metal.


1.8) MARKET INFLUENCING FACTORS

Level of stocks with London Metal Exchange

Fluctuation in the world demand for zinc

Growth rate of the zinc producing countries

Changes in the prices of the other substitute metals

Funds in the zinc sector.

1.9) MAJOR TRADING CENTRES OF ZINC

The largest zinc market in the world is the London Metal Exchange that affects the world

demand and supply for zinc significantly.Zinc is also traded in the Indian commodity

exchanges like Multi Commodity Exchange of India, National Commodity and

Derivatives Exchange of India and National Multi Commodity Exchange of India.


CHAPTER 2: COMPANY PROFILE

Binani Zinc is the pioneer in the manufacture of high grade electrolytic zinc in India

since 1967. The project initially commenced as Cominco Binani Zinc, on 2nd August

1962, the technical and financial collaborative arrangement was with Cominco Limited a

Canada based world leader in non-ferrous metallurgical field. After the withdrawal of

Cominco Limited as the financial collaborators in 1991, in alignment with their

worldwide policy, the company was rechristened as Binani Zinc Limited. Binani Zinc

was destined to carve its niche in the domestic private sector, a turning point in Indian

Industry in saving considerable foreign exchange on the import of this vital white metal.

Binani Zinc Limited got into collaboration with M/s.UM Engineering of Belgium for a

modernisation & expansion programme. The ultra-modern zinc production plant with a

capacity of 30 kty is located across 110 acres of land in lush green, verdant Edayar

village, Ernakulam District, Kerala on the banks of serene river Periyar, 20 km upstream

from the Cochin port.

This strategic location, named as Binanipuram, has proven ideal as it facilitates the

loading and off-loading of zinc concentrate, provides cost efficient power supply, ease in

transportation, abundant water and easily available resources, inclusive of a literate

workforce. The raw material viz. Zinc concentrate is imported and carried to Cochin Port

and unloaded at the fully integrated plant site to go through a fourfold techno savvy

refining process, with state of the art methodologies.

The company has an annual turnover of Rs. 266 crores. There are 96 management staff

and 240 non-management staff making it a total of 336 employees. The capacity of the

plant initially was 14000 Tonnes per annum. Over a period of time the capacity has been

increased to 20000 Tonnes in 1992 and 38000 MT in 2005. The total consumption in

India 425000 MT Per Annum. But the supply of zinc in India only amounts to 3,

58,000/annum, a major portion of which is supplied by Hindusthan Zinc (3,


20,000/annum) and a small percent by Binani Zinc (38,000/annum). So the country has to

import zinc from different places.

2.1) HIGHLIGHTS

The company has many firsts to its credit

It is the first Indian company to operate a customized zinc smelter designed for

100% imported zinc concentrate.

The first Indian company to produce special high grade quality of zinc with

99.995% purity.

The first to install high productivity, energy saving super jumbo cell technology.

The first in the private sector and one of the two primary manufacturers of zinc in

India.

The only company to install a converter heat exchanger system in the acid plant,

designed by M/s. Lurgi, Germany for energy conservation.

Among the first to be recognized by the Department of Science and Technology,

Government of India for its R&D facility and laboratories.

The first to be recognized by the Bureau of Industrial Costs and Prices as the Best

Zinc Plant in the country for the steps taken for energy conservation.

First in India and, in Asia, to be certified by BVQI for the four international

accreditations viz., ISO 14001:1996, SA 8000:1997 as well as OHSAS

18001:1999 for installation and maintenance of Environmental Management

System, Social Accountability Management System, Occupational Health and

Safety Assessment Series respectively.

The only Indian company having solid waste( jarosite) disposal facility,

confirming to EPA ( USA) standards.

Binani Zinc will also pioneer corporate sustainability reporting ( C.S.R ) on the

lines of the global reporting initiative (GRI )

The company’s production has reached 38,000MTPA


The company has access to the cheapest power sources, which will enable it to

become a low cost producer in spite of small capacity.

The company has initiated global sourcing of raw material feed to ensure

diversified resources.

Long term tie-ups with major suppliers of Zinc concentrate for assured supply.

Binani zinc also has the capacity to treat concentrates of varying compositions,

giving it an unassailable edge over integrated producers.

2.2) BVQI CERTIFICATIONS

As mentioned earlier Binani Zinc Ltd is the first company in India and, in Asia, to be

certified by BVQI for the four international accreditations viz., ISO 14001:1996, SA

8000:1997 as well as OHSAS 18001:1999 for installation and maintenance of

Environmental Management.

2.2.1) ISO 9000: 2000 QUALITY MANAGEMENT SYSTEM

It is intended to demonstrate its ability to provide consistently a product that meet

customer and applicable regulatory requirements. It also addresses customer satisfaction

through the effective application of the system, including process for continual

improvement and the prevention of non conformity. The system is audited once in six

months.

2.2.2) ISO 14001: 2004 ENVIRONMENTAL MANAGEMENT SYSTEM

All activities and their environmental aspects and impacts are assessed and procedures

are laid down to prevent pollution. The system is audited in every six months by internal

and external auditors. Environmental objectives and environmental management

programs are set for officers at various levels to ensure continual improvement in

environmental performance.

2.2.3) SA 8000:2000 SOCIAL ACCOUNTABILITY MANAGEMENT SYSTEM


To achieve global standards the company has established SAMS that is in conformity

with the requirements of social accountability standards. The social accountability

management system addresses the following:

Forced labour, Child labour, Health and Safety, Freedom of association, Right to

collective bargaining, Discrimination and Management systems.

2.2.4) OSHAS 18001:1999 OCCUPATIONAL HEALTH AND SAFETY

ASSESSMENT SERIES

It is a set of plans actions and procedures to systematically manage health and safety in

work place


CHAPTER 3: PRODUCT PROFILE

The main product of Binani Zinc Ltd Edayar is Zinc. It comes in two varieties Super

High Grade Zinc (SHG) that is of 99.99% purity level and High Grade(HG) of 99.95%

purity level. The main product zinc is obtained after a series of chemical process. The by

products of these process are cadmium and sulphuric acid.

3.1) MAIN PRODUCT

Zinc- high grade (99.95%)

Zinc-super special grade(99.99%)

3.2) BY PRODUCTS

Cadmium

Sulphuric acid

3.3) MARKETS

The company is having 11 depots. They are at Mumbai, Calcutta, Damon , Banglore,

Silvasar, Chennai, Pondicherry, Baroda, Raipur and Tada. The company is exporting its

products to Turkey, Italy, UK, Korea. They have no credit sales.

3.4) THE MAJOR USES OF ZINC ARE :

Anti-corossion coating on steel( galvanizing).

Precision components.

Construction material.

Brass.

Pharmaceuticals and cosmetics.

Micronutrient for humans, animals and plants.


3.5) MAJOR CUSTOMERS OF BINANI ZINC LIMITED

3.5.1) ZINC

Eveready industries Ltd.

Phonex industries Ltd.

METADUST

Ganga Jamuna Ltd.

Southern metals and alloys Ltd.

Jeep.

Demorna chemicals Ltd.

Sargam Metals Ltd.

3.5.2) SULPHURIC ACID

Vyshak chemicals Ltd.

Narmada chemicals Ltd.

Hindusthan news print Ltd.

Sud Chemicals Ltd.

Reliance dye chemicals Ltd.

Trishul chemicals Ltd.

Coods agroLtd.

3.5.3) CADMIUM

Anil metals company.

Southern metals market

S.K chemicals Ltd.

3.5.4) RAW MATERIALS


The raw material used for producing Zinc is Zinc Concentrate (called calcine) which is

imported at the rate of 66000 MT/YR and the fuel 5.1 KL/day.

3.5.5) WASTE

3.5.5.1) LIQUID

The liquid effluent of 550 m3/day generated from process plant utility services,

DM plant and Supernatant solution from Jarosite pond is discharged into Periyar

River after treatment.

For treating the effluent an effluent treatment plant consisting of equalization

tanks, neutralization tank, Clariflocculator and collection tank are provided.

3.5.5.2) SOLID

Dry Jarosite from leaching and purification plant containing iron, Zinc, Lead,

Cadmium, Copper, Nickel pumped to Jarosite pond.

ETP sludge for disposal in Jarosite pond.

Gypsum and anode used from cell house – Jarosite pond.

Primary and secondary cake leach residue.

Zinc ash from zinc melting furnace.

Nickel cake from leaching and purification plant.

Thallium cake from leaching and purification plant.

Spent V2O5 catalyst from roaster and acid plant.

Lead dross from cell house.

Spent oil from captive power plant.

CHAPTER 4: MISSION, OBJECTIVES AND STRATEGIES


4.1) MISSION

To forge ahead as a world class organization in the core sector industry in India

and abroad.

To explore all opportunities and enhance its stake holders value through ethical

practices.

To relentlessly pursue in the new global movement for a “ customer driven,

quality oriented, socially conscious,” industrial co-operation

To adopt, adapt, assimilate and integrate the technologies from global giants,

thereby leveraging value addition through deployment of technology into

products and services.

To adhere to the highest standards in manufacturing, beyond the stringent

parameters of environmental stipulations.

To pursue research and development activities diligently, consolidating on its

track record of innovations and breakthroughs in manufacturing practices on state

of art technology platform.

To promote human values at the forefront and nurture its people with a deep

rooted sense of employee care, concern and deep rooted commitment to people;

people being considered as assets of high intrinsic value.

4.2) POLICY ON QUALITY ENVIRONMENT SAFETY HEALTH AND SOCIAL

ACCOUNTABILITY

Binani Zinc Ltd. , Binanipuram is engaged in the manufacture and sale of zinc

metal and its by-products sulphuric acid and cadmium metal.

The company considers quality of its products and services, environmental

control, safety and health of all its employees and social accountability as the

prime management responsibility and strives for continual improvements.

The company is committed to comply with social accountability standards, all

existing national and local applicable legislations including all legal and other

requirements pertaining to environment, occupational health and safety.


The company will encourage waste minimization and re-utilization as well as

recovery of valuables from waste stream.

The company will continuously strive for energy conservation in all its

operations and processes.

The company will endeavor to ensure that the people and the environment are

not put to unacceptable risks by adopting world class environment friendly

operations and processes by ensuring the use of relevant personal protective

equipment.

The company will interact with its customers to continuously asses their needs

and expectations and ensure total customer satisfaction by maintaining

consistent quality of its products and services with the involvement of its

employees.

The company will promote transparency and openness in its relationship with

its employees and the community and treat them in a fair and respectful

manner.

The company will display its policy in its premises and also in brochures

published for the benefit of its customers, suppliers, employees and other

interested parties.

4.3) STRATEGY

The core strategy is based on consolidation and sustainable growth. The

investment strategy of the company aims at becoming a low cost producer in all


its business and in upgrading technology to meet stringent product quality

requirements. Quality is the manthra of the organization.

Ever since its inception it has been in the forefront of providing quality products

and services to its customers with equal emphasis on environmental pollution

control and energy conservation. It maintains commendable grade of quality in all

levels of its operation and high level of its productivity by adaptation of state of

art technology. The customer centric manufacturing and satisfaction are the main

forte of the quality management satisfaction.

The approach is customer centric and the production of 30000mt of zinc/ annum.

But the scarcity of raw material is the main problem faced since raw materials are

basically imported. The implementation of management like ISO 9000, ISO

14000, ISO 18000, SA 8000 provide the company with a string orientation

towards an unmatched paradigm for world class manufacturing.

Modernization and up gradation program was undertaken over a period of ten

years from 1985-1995 in collaboration with various leaders in non ferrous metal

industries like Lurgi ( Germany), Mechim ( Belgium). The state of art technology

and automated plant and equipment were installed. Earlier the company entered

into a technical and financial collaboration with a Canada based Cominco Ltd.

World leaders in the field of non ferrous metals to form Cominco Binani zinc Ltd.

The company has entered into collaboration with Um engineering Belgium for

modernization and expansion of its leaching purification plant. The technology

for roasting and electrolytic plant of the zinc smelters is provided by Lurgi,

Germany. The technology for the tank house envisaged for the brown field

expansion at the company will be provided by Um engineering Belgium.

Technology and operational back up collaboration has been tied up with Korea

Zinc Corporation and Korea Zinc Company limited for all areas of zinc plant

except tank house for the brown field expansion.


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5.1) COMPANY HIERARCHY

Management Committee members(Works Manager, VP- R & D,)

Assistant VP/GM/ Dy GM

Senior Manager/ Manager/ Deputy Manager

Senior Engg/ Engg, Senior Officer/Officer

Work Men –Grade 1, 2. 3. 4


CHAPTER 6: DEPARTMENTS AND FUNCTIONS

6.1) HUMAN RESOURCE AND OCCUPATIONAL HEALTH SERVICE

6.1.1) STRUCTURE

6.1.2) FUNCTIONS

The HR &OHS Department of Binani Zinc has two main functions- Human Relation

Management and Occupational Health Service.

The major functions of the HR department in Binani Zinc are divided into:

Industrial Ralation

Recruitment, Training, Appraisal.

Personal Management

Welfare Management

Management Service

VP (HR & OHS)

GM (Administration) GM (HRD) CMO

Manager (Safety) Security Officer Manager (IR)

Dy. Manager(HRD)

Management ServiceWelfare OfficerPersonal Officer

Workmen Category


Security

Industrial Relations: Industrial Relation deals with trade union management,

contract labour management, compliance with statutory requirements etc. There are three

recognized trade unions have been registered with Binani Zinc. To be a registered trade

union in the company, the union should secure 20% vote of the total employee strength.

There are weekly meetings with the trade union members. Only the members of the trade

unions participate in the meeting. There is no grievance handling cell in the company. If a

worker has a problem, he has to first give a complaint to the trade union leader. If the

problem is not settled there, he can move to the next level i.e. concerned department head

and then to the HR Manager, Labour Court and finally the Supreme Court of India. The

system is designed according to the Factory Act of India. The statutory requirements like

PF, apprentice ship etc are also a part of IR.

Recruitment: For a new vacancy in the company the first preference goes to the

company employees. Through internal notification the eligible employees are given a

chance for writing the promotion test, or internal transfer. Promotion of internal staff will

be based on performance. If there are no eligible candidates inside, then the company

goes for recruitment from outside. External notification is given in leading English and

Malayalam dailies. In external recruitment as well, the first preference goes to the

children of the employees. The next preference is for the local people (people living close

to the company). For the past three years, there has been no new recruitment.

Induction: Each new employee is kept under probation for six months which includes a

one month induction program. Technical staff is inducted into the R&D department.

After the one month induction program they are moved into the respective departments.

Training and development : The Company follows different training schemes for

different category of employees.

Management Training Programs: Management staffs are given one year

training after which they enter probation for the next six months. During the training


program, they are given a stipend of Rs.7000 per month. After the probation they are

absorbed into the respective department.

Workman Training: The workmen are given a training for 2 years in which they

are given a stipend of Rs.2000 per month the first year and Rs.3000 the second year.

After the probation, are absorbed into the respective departments.

Apprenticeship training: The Company facilitates apprenticeship training for one year as

per the Apprenticeship Act. It is categorized into three different types- Graduates,

Technicians and trade Apprentice. Graduates get a stipend of Rs.1930, Technicians who

are Diploma holders get a stipend of Rs.1400 and Trade apprentice (ITI holders) get a

stipend of Rs.800.

Paid Trainees: As a welfare function, children of employees holding professional

degree are given training in the company with a stipend of Rs.1500. But it is not

necessary to absorb these candidates into the company.

Unpaid Trainees: Diploma holders are given training, but they are not paid any stipend.

At the end of the training program a company certificate is issued.

Cross Functional Exchange Program: This facility is also for the

management staff to get familiarize with the departments apart from the department in

which he works. It is a 4 month training program. It is intended to enhance multiple

working skills in a person.

Knowledge and Skill Up gradation Program: This is a program in which high grade

employees belonging to the non-management staff are trained and promoted to lower

level management staff.

Performance Appraisal: The main objective of the appraisal is to identify if

employees need any further training, identify the eligible people for promotions and

salary increment. In case of trainees under probation, monthly assessment is done where

the quality and quantity of work, attendance, relationship with the other employees etc

are assessed. In case of permanent employees a closed appraisal system is adopted where

only the respective department head and the HR department is present.


Welfare: All statutory functions according to the Factory Act like canteen, rest rooms,

drinking water, health centre etc are provided. Apart from these employees are provided

with uniform, footwear, umbrella, soap, towel, shoes, transportation etc are provided by

the company. Recreation room is equipped with various indoor games like table tennis,

chess etc. Various cultural events are held. Festivals like Diwali are celebrated where

various competitions for the staff and children are held.

Employee Motivation: To motivate the employees Best Performance Award is

given to the best employee.

Health Center: Specialist Medical Camp is held every month where free consultation is

provided for the employees, their family and local residents. A compulsory medical

checkup for all the employees is held annually.

Safety: The main objective of the department is to ensure safety activities and ensuring

statutory compliance, development of safety systems and implementation, taking care of

the housekeeping activities, ensuring conformance to safety regulations, accident

Investigation Analysis and remedial measures etc.


COMMERCIAL DEPARTMENT

STRUCTURE OF COMMERCIAL DEPARTMENT

MAJOR FUNCTIONS

VP (Commercial)

GM (Marketing)

Sr. Manager (Marketing)

Deputy Manager (Marketing)

Officer (Marketing)

AGM (Materials)

Sr. Mgr (Materials)

StoresPurchase

Sr. Officer Purchase

Sr. Officer Stores

Sr. Officer

StoreStaff

Sr. Officer

Purchase Staff

Sr. Officer

Sr. Officer

Sr. Officer

Marketing Purchase Stores

COMMERCIAL DEPARTMENT


MARKETING

STRUCTURE

FUNCTIONS

PROMOTION

Promotion of the product does not take place through media or by any other means.

Promotion of products in Binani Zinc takes place verbally through customers. A potential

customer can tell his friends and acquaintance about the quality product that they get

from Binani Zinc. So no addition charges are incurred an advertisement and

campaigning.

SALES

Sale of Zinc, Cadmium and H2SO4 are done directly from the Binanipuram office and

the depots in various places in India. Sale of Zinc and Cadmium is determined daily on

the basis of level of production. Sale of H2SO4 is fixed in advance and only a specific

number of customers can be supplied. Sales is also carried out through sales agents. Both

the company and the agents keep in constant touch with the customers. Customer

VP Commercial

GM (Marketing)

Sr. Manager(Marketing)

Officer (Marketing)

Dy manager(Marketing)


feedback is collected every year towards the end of March and it is processed by June.

The purpose of this is to mprove the quality of customer service by 2% and to reduce the

complaints by 5% annually. The company has been successful in achieving its objectives

and the customers are happy with the quality of products , services and handling of

customer complaints.

PURCHASE

All the purchases in the company has to move through the purchase department be it raw

materials or spare parts. A purchase requisition form is generated for each purchase.In

case the amount and cost associated with the material is large, the purchase department

invites quotation from the suppliers by publishing the requirement in the newspaper.

After negotiations, the supplier who agrees to provide the material at minimum cost is

given the contract. Most of the materials are insured through the New India Assuarance

Company.


STORES

STRUCTURE

VP Commercial

Dy. GM (Materials)

Sr. Manager (Materials)

Purchase Stores

Sr. Officer (Stores)

Sr. Officer (Purchase)

Sr. Officer

Sr.Officer

Purchase Staff

Sr. Officer Stores Staff

Stores Staff

Stores Staff


Stores department makes use of an Oracle Based System to carry out its activities called

an Item Master. Item Master gives details about the items stored in the store like name,

code; stock in hand, stock in indent etc. The Purchase Requisition (PR) Module can be

made use to make the Purchase Request. PR is checked by the purchase department and it

deals with the rest of the formalities like raising enquiries, contacting the vendors and

finally preparing the purchase order.

Delivery Chelan (DC) is the most important document of stores department, which gives

the details like the name of the item, its make, quantity etc and no rates will be available

in this Chelan. The Invoice shows the total amount.

Once the goods are received at the stores department, the users are intimidated and they

can have an inspection of the item. Generally Inspection is done by the person who gives

the indent or by the users. Initially the items received at the stores is kept in a temporary

location and the inspection is done in the temporary location itself and once inspection is

over and the user or inspector gives ok , the GR is generated and Item Master is updated.

The user can take the items to the respective department where it is required or retained

in the stores department. Each item kept in the stores are given a specific location based

on the category each item falls in to. To move items from store house for different uses a

Warehouse Request (WR) is Issued and the database is automatically updated.


STORES PROCEDURE

Receipt of Materials

Automatic Indent for items that reach the reorder level

Verification of the stores

Generation of SIR

Issue of material on production of MR

Inspection of items Accepted quality Identified by tags Stored in respective

location Costing of SIR


OPERATIONS DEPARTMENT

STRUCTURE

Maintenance and Utility

Instrumentation Maintenance

Electrical Maintenance

Mechanical Maintenance

Operations Dept

Production

AVP(Electrical & Instrumentation)

Electrical Instrumentation DGM

Dy. Manager Dy. Manager Dy. Manager Dy. Manager

6 Technicians

4 mechanics


MAINTAINANCE DEPARTMENT

STRUCTURE

FUNCTIONS

Maintenance and utility department deal with the maintenance of the various plants,

checking the working condition of each plant, checking the working condition of its

equipments, preparing budget, testing and inspection and preventing accidents,

providing monetary help to employees if they are injured doing working hours,

providing medical help etc. There are around 27 workers in this department.

Dy GM (Maintenance)

Sr. Manager (Roaster, Acid, WS & General admin)

Manager (Cell House, Melting)

Sr. Manager (Leaching, Purification, Annual Contracts, Colony Repair)

Dy. GM (Utility)

Dy. Manager (Mechanical)

Dy. Manager (Operations)

Sr. Engineer Sr. Engineer Sr. Engineer

Sr. Engineer


PRODUCTION DEPARTMENT

The production of Zinc takes place in four stages carried out in four different plants . The

four stages are:

Roasting: The concentrate, Zinc Sulphide, is roasted in a fluidized bed roaster and

converted to calcine (Zinc Oxide). Sulphuric Acid is produced as a by-product.

Leaching: The calcine is leached with spent electrolyte to get Zinc Sulphate solution and

subjected to two stages of purification; using state of the art purification technology

licensed from UM Engineering, Belgium. The process ensures removal of all traces of

impurities and pure Zinc Sulphate electrolyte is produced. Cadmium metal is recovered

as a by-product from the purification residue.

Electrolysis: The purified Zinc Sulphate Solution is electrolysed in a modern automated

Jumbo Cell House. The zinc thus produced is deposited on aluminium cathodes, which

are stripped in a cycle of 48 hours.

Melting: The stripped cathode zinc sheets are melted in an induction furnace and cast

into saleable ingots.


INSTRUMENTATION DEPARTMENT

FUNCTIONS

Instrumentation maintenance of the plant

o Preventive Maintenance

o Reactive Maintenance

Modification/Improvement aspects (Minor)

(Major improvements/modifications done by Maintenance Dept)

Indigenization of imported instruments –

Finding substitutes by developing similar models

Reduction in cost factor,

PH sampling system was developed according to company requirements (Tailor

made)

General Administration

Automation (Part of maintenance)

Budget Preparation (for management systems)

Log Report (Log report, done manually on a daily basis)


ELECTRICAL DEPARTMENT

FUNCTIONS

The main functions of the department are to serve the electrical requirements of the

company, the four plants, the different departments etc. it also has additional functions of

running maintenance, preventive maintenance, annual budgets.

STRUCTURE

AVP

Manager Sr. Engineer Officer (Electrical)

Non Managerial Staff


INFORMATION SYSTEMS DEPARTMENT

This is a service Department of the Company. It works on Oracle platform – oracle

developer 2000. Has a Mini ERP – Partially developed according to company

requirements . The company has 85 PCs connected to main server- 1 BM . Operaing

system for the server is Windows 2000, and for the other systems Windows XP, 98,

2000 etc . Separate ERP pack for each departments is maintained. The Department

wasformed in 1982 with a single PC and data entry machine . The ERP model was

established in the year 2001upgradation happens every 5 yrs .ERP was made by an

outside company in Kadavantra . There is AMC for all systems

STRUCTURE

VP

General Manager

Sr. Manager

Deputy ManagerDeputy Manager

Trouble Shooting


FUNCTIONS

Maintaining Data

Retrieval and storage

Access permissions restricted

Installs programs in various departments

Timely up-gradation to meet increasing requirements

SONIC wall- Security online

MacAfee-auto update against virus

Different slots for net surfing

NEW INTRODUCTION IN THE COMPANY

NAS: Network Attached Storage

Automatic back up system

One Terabyte capacity

Done manually, needs huge investment for automation


RESEACH AND DEVELOPMENT

The R&D wing at Binani Zinc, Binanipuram, has been recognised by the Department of

Science and Technology, Government of India. The efforts of the operationally proficient

and qualified R&D team are noteworthy for spawning in-house development process, like

treating the leached residues for recovery of metallics, separation of gypsum from the

electrolyte, effluent treatment, changeover from batch process to continuous leaching and

purification methods and a changeover in the method of purification. All these efforts has

saved substantial costs.

STRUCTURE

VP(R & D& Operations)

Sr.Manager (R&D)

Manager

Sr. Engineer Sr. Officer Officer

Sr. Chemist Lab AttendantsChemist


FUNCTIONS

Research & Development has three sections

1. Development Section: This sections deals with projects for process modifications and

improvements and trouble shooting. There is no fundamental research going on in this

department. Only research related to process improvement are carried out here. Another

major function is the evaluation of raw materials, and its inspection for suitability in

process.

2. Assay Section(Quality Control Section) : This section deals with the analysis of raw

materials, finished products etc. Analysis has two main objectives-commercial payment

and analysis for process.

3. Environmental Section: This section deals with the environmental aspects like getting

approval from the pollution control board, inspections, analysis, monitoring and reporting

to pollution control board.


FINANCE DEPARTMENT

STRUCTURE

FUNCTIONS

The company’s finance department was computerized in 1983. The major functions of

the department are:

1. Purchase bill accounting: All the payments related to purchase are dealt here. It

makes use of computerized cheque leafs issued from the bank to make payments to the

suppliers, agents etc.

2. Sales accounting: Agents accounts related to stationary, printing, transportation etc

are maintained here.

3. Stores accounting: It deals with the reception, issue and storage of materials.

AVP(Finance)

GM

Manager Manager Manager

Non Managerial Staff

Dy. ManagerDy. Manager

Officer


4. Raw material accounting: The raw material imported from various places comes by

ship to the port. The material is unloaded using barges to a space that is rented by the

company for temporary storage of the material. The charges for the whole activity

include the cost of the material which is based on LME price, despatch money, customs

duty, handling chares at the dock plus the rent to the port.

5. HRD Package: The main purpose is to take care of the salary payment to the

employees. It makes use of a payroll package in association with the HRD.

6. Corporate office setup: It takes care of the cash and bank operations and the statutory

remittances like the sales tax, income tax, ESI, PF etc.

7. Auditing: Auditing includes Annual Financial audit, Income Tax audit, Cost audit,

Sales Tax audit. Each serves different purposes. It is done from professionals outside the

company but monitored by the finance department. Internal audit is done on contract

basis. Finance department helps them in giving the necessary information and data.

8. Budgeting: Budget allocation starts with the marketing department. The marketing

department estimates the sales for a particular year. Based on that the budgets of the other

departments are allocated as of how much raw material is to be purchased, how much

should be spent on maintenance research etc. About 60% of the total cost is allotted to

raw material, 20% to electricity and 20% to labour and administer


CHAPTER -7 SWOT ANALYSIS

Identification of the threats and opportunities in the environment and the strengths and

weakness of the firm are the factors which determine the course of action to ensure

growth of the firm.

STRENGTHS

1. Binani Zinc has always been in the forefront of the technical up gradation to

match the industry standards and has emerged as the NO.1 in terms of customer

delight with unwavering commitments and focus on quality.

2. Dedicated and recognized in-house R&D cell has provided necessary technical

support right from the basic engineering to the quest for operational excellence.

3. The competent managerial staff and workers in the company help in the smooth

functioning of the company.

4. Pioneers in manufacture of electrolytic zinc in India.

5. First Indian company to produce SHG Zinc.

6. First to install high productivity energy saving jumbo cell house technology.

WEAKNESS

1. Small unit compared to world standards

2. The production process is totally dependent on the concentrate. The scarcity or

non availability of the material might halt the plant work.

3. The company does not have mines of their own to extract zinc ore hence it has to

depend solely on imports from abroad.

OPPORTUNITIES

1. Strong customer base and brand image in market.

2. The company has diversified into cement manufacturing in north India and a

glass factory in Goa as independent groups. Hence there is much scope for

product diversification .


THREATS

1. Competition from Hindustan Zinc Ltd.

2. Imports from Nepal.

3. Increased output from Hindustan Zinc Ltd has put tremendous pressure on prices

of sulphuric acid.

4. Cadmium prices on the downtrend compared to last years.

5. Fluctuations in LME.

6. Proposed steep hike in power tarrif in state.

7. Non Availability of concentrate.

8. Reduction in import duty.


PROBLEMS FACED BY THE COMPANY

1) Reduction in Import Duty -The future expansion plans of Binani Zinc, is likely to be

affected by the reduction in import duty on non-ferrous metals such as zinc in the recent

Union Budget. The import duty had been brought down from 35 per cent to 25 per cent,

and at the same time, no relief had been given on the import duties for the basic raw

material such as zinc concentrate.

2) Power Tarrif Hikes - The steep electricity tariff revision by the Kerala Government is

making the operations of Binani Zinc increasing unviable

3) Shortage of Raw Material: The shortage of raw material is a major problem faced by

the company. The company had to be shutdown for more than hundred days because of

this problem and it resulted in poor performance of the company


FUTURE PLANS

The company is proceeding with the setting up of 2 Hydel power plants, with an

installed capacity of 10MW, for which necessary approvals have been given by

the State Government.

In view of the adverse market for coal and consequent impact on cost of

generation, the company has deferred plan for setting up a thermal power plant.

The company is also carrying out a series of debottlenecking exercises to

maximize capacity utilization.


CONCLUSION

Demand for Zinc metal in India has been steadily increasing at well over 7-8% CAGR in

the last 5 years. The growth pattern is expected to shift higher trajectory of 10-12% n the

coming years. The company has a low attrition rate which is a positive sign of employee

satisfaction. Computerisation of the departments make the functioning of the company

more efficient and faster. The company also faces many problems like reduction in

import duty, hike in power tarrif, insufficient supply of raw material etc. The VAT

scheme will help speed up the process of unified tax regime in respect of sales tax. But th

company is expected to increase its productivity and operational efficiency with the

commissioning of the belt filter in the plant. So even though there are serious problems

due to the government policies, the overall performance of the company is good and t

will continue to do better.


BIBLIOGRAPHY

WEBSITES

1. www.binaniindustries.com

binani zinc ( ost )

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