full report os about hindustan insecticides ltd

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This is an organisational study about HIL covering their various departments, their functions and operations.

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Page 1: Full Report OS about Hindustan Insecticides Ltd

DC School of Management and Technology Page | 1

CHAPTER – 1

INTRODUCTION

Page 2: Full Report OS about Hindustan Insecticides Ltd

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1.1 OBJECTIVES

To analyze the industry and company profile with an overview of the strengths,

weaknesses, opportunities and threats of the company.

To examine the organizational structure of the company and its departments

To understand the process involved in the organization

To identify internal and external factors that affect strength, weaknesses,

opportunities and threats.

To understand how information is used at various levels of the organization for

decision making.

1.2 METHODOLOGY ADOPTED

Primary sources of information are observation and semi structured interviews

conducted with personnel at various levels of the organization.

Secondary sources of data are manuals provided by the organization, text books and

the world wide web

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1.3 EXECUTIVE SUMMARY

This organizational study has been conducted with the intention of understanding the

structure of the organization and the functions carried out by its departments to get a holistic

view, at the Hindustan Insecticides Limited, Udyogamandal, Eloor, a chemical

manufacturing company.

With growing world population, there is an increasing need for larger rate of

production of food-grain, and hence a need for quality pest control measures as well. Thus,

the industry promises bright prospects in markets world-wide.

HIL, a public sector enterprise, was incorporated in March 1954 under the first five year

plan, for the National Malaria Eradication Programme. Udyogamandal unit was established

in 1958, and over the years, the company has grown to produce a large variety of quality

pesticides, insecticides and Weedecides for farmers world-wide.

The Udyogamandal unit is headed by a General Manager, under whom the departments of

Personnel and Administration, Finance, Research and Development, Production,

Engineering, Commercial, Quality Control and Safety functions in a well structured manner.

The functioning of the departments, as facilitated by the employees is owed to the standing

orders adopted by the company. An analysis of the strengths, weaknesses, opportunities and

threats faced by the company is done. Being a public sector enterprise, the company is well

backed by the government of India. This promises the company to develop. Potential markets

across the world are being tapped. With sustained government policies, the company has

bright prospects.

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CHAPTER – 2

INDUSTRY PROFILE

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2.1 PESTICIDE INDUSTRY: GLOBAL SCENARIO

The world pesticide industry is dominated by nine multinational basic producers from the

United States and Western Europe; they account for nearly one half of the total output.

Monsanto, Bayer, DuPont, Dow agro science, BASF, in the top ten is Agrevo, a joint venture

of Hoechst and Schering. Producers in the second tier (annual sales below $1 billion) include

sumitomo, Sandoz, FMC and Rohm and Haas. Expenditures on herbicides accounted for the

largest portion of total expenditures – more than 40%, followed by expenditures on

insecticides, fungicides and other pesticides respectively.

Types of pesticides World market (in million

dollars)

World market (in %)

Herbicides 14,118 44

Insecticides 8,763 28

Fungicides 6.027 19

Other 2,848 9

Total 31,756 100

2.2 INDIAN PESTICIDE INDUSTRY

Agriculture is the keystone of the Indian economy. Ensuring food security for more than1

billion Indian populations with diminishing cultivable land resource is a herculean task. This

necessitates use of high yielding variety of seeds, balanced use of fertilizers, judicious use of

quality pesticides along with education to farmers and the use of modern farming techniques.

It is estimated that India approximately loses 18 percent of the crop yield valued at Rs.900

billion due to pest attack each year. The use of pesticides helps to reduce the crop losses,

provide economic benefits to farmers, reduce soil erosion and helped in ensuring food safety

& security for the nation.

India is the largest manufacturer of pesticides among the south Asian and south

African countries. Chemical pesticide industry in India at present comprises of large

domestic players, large multi nationals and the small scale sector.

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India‟s population at present is over a billion and it is expected to rise to 1.5 billion by year

2040.Presently, the annual food grain production is on an average of 210 million tons, but the

requirement will be 300 to 350 million tons by year 2040. Hence, food grain production

needs to increase to around 1.5% per annum.

India produces 16% of the world‟s food grain but uses less than 2% pesticides used

worldwide. Hence the industry still has a good potential of growth. In India, higher rates of

food grain production can be achieved by enhanced and proper use of irrigation, high

yielding seeds, balanced use of fertilizers, high quality plant protection, education to farmers

etc.

The Indian companies have developed process technologies for more than 30 pesticides, and

pesticides exports from India are steadily on rise. India exports pesticides for approximately

Rs.2000 crores every year. This has increased by 15% in the last three years and the Indian

pesticide industry has built good reputation as a reliable supplier.

Insecticides always dominated the Indian market as well. However, in the past few years the

share of herbicides and fungicides is steadily increasing, and the overall consumption of

chemical pesticide is declining.

Still, according to the report of standing committee of petroleum & chemicals, the losses

from pests, insects and diseases amounted to approximately 90,000 crores per annum. This

situation calls for taking enhanced and effective steps for use of pesticides to save crop losses

and increase food grain production. Industry and government should take special initiatives

to popularize the use of insecticides, herbicides and fungicides to minimize the crop loss.

The goal of sustainable agriculture is to maintain production at levels necessary to meet the

increasing aspirations of an expanding world population without degrading the environment.

Over the next two decades or so pest control practices are believed to be affected globally as:

Primary reliance will remain on bio-based application of chemicals

More selective less persistent insecticides will be available, and they will be applied

by skilled applicators.

Disease and insect resistant varieties and biological pest suppression will emerge as

major component of the pest control activity.

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Major players of Indian Pesticides industry

Indian Players

1) Tata Rallis India Ltd.

2) United Phosphorous Ltd.

3) Excel Industries Ltd.

4) P.I. Industries Ltd.

5) Gharda Chemicals Ltd.

Small Scale Firms

1) Dhanuka Pesticides

2) Bharat Insecticides

3) Hindustan Insecticides Ltd

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CHAPTER – 3

COMPANY PROFILE

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3.1 INTRODUCTION

Hindustan insecticides limited was incorporated in march 1954 to operate a DDT plant gifted

to government of India by the UNICEF to help to eradicate malaria in the country.HIL is a

fully government of India owned company. The company affairs are taken care of by the

board of directors. The strategic decisions are taken by the chairman and managing director

who is at the helm of affairs, is also assisted by the general manager.HIL is a foreign

exchange earner to the nation who exports pesticides to European countries and Latin

American countries.

The Udyogamandal unit of Hindustan Insecticides Limited was the first among the

central public sector undertakings set up in Kerala during the second five-year plan in 1958.It

is situated in Eloor panchayath spreading over an area of about 34 acres.

Availability of natural resources especially water, access to road, rail,

air and seaport, non-populous area and easy access to hospitals, fire stations and police

stations to meet emergencies are the main reason for the company for setting up its major

manufacturing unit in Udyogamandal.

The place is an industrial area which teams with industries like FACT, TCC, IRE,

MERCHAM and BSES. HIL is surrounded by Southern Gas Limited, FACT Udyogamandal

division Indian Rare Earths. These companies provide employment opportunities to the

public and helps to solve the unemployment problem prevailing in the state to an extent.

Even though Udyogamandal division of HIL is governed by the Delhi office, they are

allowed to make certain decisions regarding purchase, production and distribution depending

upon demand.

The unit is headed by the General Manager and he is subordinated by various department

heads, officers and superintendents. The company meetings are programmed by Personnel

Department. The General Manager conducts daily meetings with department heads and the

day to day operations are managed on the basis of the decision taken in these meetings

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MANUFACTURING UNITS

With the growing demand of public health programme the production capacity of the

company was increased subsequently. The company has at present two manufacturing units

one at Udyogamandal in Kerala state (1958) and another at Rasayani Maharashtra state

(1977).

The company had one manufacturing unit at Delhi which was closed on December 1st 1966

along with 167 other industries for environmental reasons as per the order of the honorable

Supreme Court. HIL has started its pesticides formulations planned at Bathinda on 5th

April

2003 to cater to the increasing requirements of India‟s agriculturally most important state,

Punjab.

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History:

HIL, a Govt. of India Enterprise, under the Dept. of Chemicals & Petrochemicals,

Ministry of Chemicals & Fertilizers, Govt. of India, was incorporated in March, 1954 for

supplying DDT for National Malaria Eradication Programme launched by the Govt. of

India. Subsequently, the company diversified into agro pesticides to meet the

requirements of agriculture sector and has grown manifold with a turnover of Rs. 2006.00

million rupees in 2009-10. Company has also entered into the field of safe and eco-

friendly botanical and bio-pesticides for public health and plant protection. It has also

started marketing of seeds in the northern, central and western parts of the country. The

product range includes Insecticides, Herbicides, Weedecides, and Fungicides etc. It has a

pest control division catering to industry houses and offices.

With the renewed focus on DDT, as a cost effective and efficient tool to fight Malaria,

the company has ventured into export of DDT 75% WDP mainly to African countries.

With US re-starting aid for procurement of DDT and WHO strongly endorsing usage of

DDT for indoor spraying, the company sees a great scope in emerging as the main DDT

supplier to the world as HIL is the world's largest DDT producer. Moreover, the company

has more than 50 years of experience and expertise in the manufacture of DDT.

The company has been exporting its agro products to a number of countries such as

Netherland, UK, Jamaica, UAE, Manila, S.Korea, Belgium, Guatemala, France,

Germany, Argentina, Ethiopia, Egypt, Spain, etc. for the last more than a decade and its

products are well-accepted in the world market. Company has a wide network of

marketing throughout the country through its six Regional Sales Offices and good

number of dealers.

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The company has three manufacturing units located at Udyogamandal, near Kochi

(Southern India), Rasayani near Mumbai (Western India) and Bathinda in Punjab

(Northern India). The company also has a Research & Development complex including

an experimental farm at Gurgaon in Haryana.

Vision:

To be a global player in the field of crop protection and public health.

Mission:

To provide quality products through clean and safe technology which would enhance

agricultural productivity and promote Public Health along with increasing product range,

exports, efficiency and productivity of the Company.

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PRODUCTS

DDT

HILBAN

HILCOPPER

DICOFOL

HILFOS

HILTHANE M-45

HILTAKLOR

HILZIM 50 WP

MALATHION

HILCRON

HILBLAST

DDVP

HILMALA

HILMIDA

BUTACHLOR

HILVOS

HILPRID

MONOCROTOPHOS

HILAZOFOS

HILPROTURON

HILMITE

HILDIT

HILLAMBDA

HILDAN

HILCARTAP

HILZOLE

DDT 75WP

HILQUIN

TRINNASHI

HILFOL

HILNATE

HILPRETI

MANCOZEB

HILPHATE

SODIUM SULPHIDE

HILFUR0N

HILGROW

HILPUNCH

HILHUNTER

HILTHION

HILMIL

HILPIK

HILFORATE

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CHAPTER - 4

ORGANISATIONAL STRUCTURE

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4.1 ORGANISATIONAL STRUCTURE

HIL has one of the oldest types of organizational structure. Its structure is of line or military

type. This type of organization is also known as scalar organization. In line organization,

each department is generally a complete self sustaining unit. Each department is under the

control of the department head, who is completely responsible for organizing the department.

Above all the department heads, there is a General Manager to whom all the department

heads are responsible. The General Manager in turn is responsible to the board of directors.

HIL is an organization with a narrow span. The members or subordinates are

usually 4-8 at the upper level of the organization and 8-15 or more at the lower levels. The

advantage of narrow span of control is close supervision, close control and fast

communication between subordinates and superiors.

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4.2 DEPARTMENTS

The Udyogamandal unit is divided into 7 departments. Each department is headed by a

department head and an office/ superintendent directs and co-ordinates the activities done by

his subordinate and implement the decisions taken by all his deputies in respective meetings.

The officer reports directly to the General Manager.

The list of various departments in HIL is as follows:

Finance department

Production department

Commercial department

Personnel department

Research and development department

Quality control department

Engineering department

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4.3 FINANCE DEPARTMENT

The Finance Department is headed by the Finance Manager. He is assisted by the Assistant

Finance Manager, followed by the accounting officer. The accounts officer is again followed

by the assistant accounts officers, accountants and their assistants.

The finance department is divided into 2 sections, namely:

Finance

Costing

Costing section looks after costing records and prepares a cost sheet for each of the

enquiry and order. It also prepares MIS report and budgeting.

The finance section is again divided into 3 sub sections. They are:

Finance and cash

Bills and accounts

Payroll

All sub sections are under the supervision of separate supervisors who are assisted by their

clerks (assistants).

The functions of each sub section of finance section are:

Finance and cash fund management

Cash accounting related to sundry debtors

Sales tax matters

Bills and accounts maintenance

Receipt and payment of bills

Assessing the cost of repairs to plant and machinery ensure all the assets of the company are

insured. Insured assets include stock, plant and materials in transit.

All the employees of the company except apprentices are insured through group personnel

accident insurance scheme.

The function of the payroll section is to deal with

the payment of employees and

punching data

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The payroll system tracks the attendance of each employee, calculates the pay of the

employee as per the attendance, and makes deductions like PF, loans, insurance, leave

balance tracking, bonus and other calculations. It also generates statutory reports like PF

statements. The system tracks shift arrangements of employees. Pay is calculated based on

the attendance of the employee. System deducts all deductions from the total earnings. A pay

slip is printed automatically.

The company classifies employees into 3 different categories:

Permanent

Casual

Apprentices

Permanent employee means an employee confirmed by the management as permanent and

his name is registered in the role of permanent employees. Casual employee means an

employee who is employed for work which is essentially of an occasional nature. Apprentice

means a person whose purpose in joining the service of undertaking is to lean a trade who is

paid during his period of training.

Employees are also classified into six pay grade scales such as W1, W2, W3, W4, W5 and

W6. Managerial cadre comes under grade 6. The lower grade is grade 1.The employees enjoy

monetary benefit as well as non monetary benefits such as

Canteen

Provision for milk

Uniform

Compliments on factory day coasting not more than Rs 1000.

Umbrella per year

Shoes

Internal audit

Internal audit is done at regular intervals, i.e quarterly by the internal auditor appointed

locally by the Board Of Directors of the company.

Finance Department of the company does the following activities and functions:

1) Consolidating each department budgets and getting the approval of chairman.

2) Preparing the profit and loss account and balance sheet to know the financial

performance of the company.

3) Preparation of plan wise budget

4) Co-ordination with personnel department in functions like disbursement of salary

advance and allowance

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5) The other activities of the finance department include preparation of accounts and

making suppliers payments. Company is using its own developed accounting

software based on FoxPro and visual basics.

DUTIES AND RESPONSIBILITIES OF FINANCE DEPARTMENT

1) FINANCE MANAGER

The finance manager handles the maintenance of cost records, fixed assets, registers,

production records and cost audit.

2) ASSISTANT FINANCE MANAGER

The responsibilities of the assistant manager are as follows:

a) Administration of bills section

b) Accounting of suppliers, contractors miscellaneous bills and accounting thereof.

c) Laisoning with statutory auditors

d) Completion of accounts

e) Reconciliation of inter unit accounts

f) Maintenance of records connected with books of accounts such as journals, purchase

journals, cash vouchers, bank vouchers etc.

g) Handling Works connected with insurance

h) Issue of „c‟ forms and „H‟ forms and dispatch of all cheques and overdrafts.

i) Payment and maintenance of records connected with work contracts taxes and income

tax in respect of contractors.

j) Tax audit, return in respect of hypothecation to be submitted to head office.

k) Obtaining confirmation of balances from sundry creditors, sundry debtors and

security deposit.

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3) SUPERINTENDENT OF PAYROLL SECTION

a) Administration of payroll section

b) Handling works connected with preparation of monthly bill.

4) ACCOUNTS OFFICER

a) Administration of finance section

b) Issue of cheques and accounting thereof and bank reconciliation

c) Passing of medical bills

d) Maintenance of cash books, cash records, disbursement of all types of cash payments

and accounting thereof

e) Maintenance of records connected with sales and accounting

f) Laisoning with government auditors

g) Laisoning with all departments in connection with government audit report

h) Persuading of government audit replies

i) Maintenance of records and payments in respect of TA/leave travel expenses.

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4.4 PRODUCTION DEPARTMENT

This department is headed by General Manager under him comes the Production Manager.

There are 3 deputy production managers. All the functions are related to the production plan

of the company. The production plans for each product is different.

The production is concerned with creation of a product or service required to satisfy

customer needs and wants. In any business that supplies a product or service, it‟s quite

obvious that the activities of production system must be closely related to the customers

demand as reflected in the continuous flow orders.

The main function of Production Department is to produce the finished products to meet the

sales orders. The department also takes care to provide training to operators. It is also

conscious of pollution control and environment protection. A centralized effluent treatment

plant in which the entire quantities of liquid effluent generated from all plants are treated and

discharged as per standards.

Effluent treatment system was put up based on the process designed by National

Environment Engineering Research Institute (NEERI). The equipment design engineering

and erection was done by M/s Richardson and Cruddas (1972)Ltd., a Government of India

enterprise. HIL has periodically incorporated several additions and modifications to the

system. Constant vigil is exercised in ensuring the quality of the treated effluents discharged

by analyzing the samples. HIL has its own quality control laboratory which is approved by

the state pollution control board. A portion of the treated water is reused and balance quantity

only is discharged.

The plant in charge supervises the plant entrusted to him and reports to the deputy production

manager of the plant who in turn reports to the Production Manager. So far no plant operates

at its full capacity. Production is done only to meet the sales orders.

Production is effective when it operates primarily to satisfy customer demand particularly

relating to quality, quantity, price and above all timing of delivery as scheduled in orders. It

must permit production activities to operate in economical and efficient manner because cost

of production is a vital factor in having the market competition. HIL insecticides are effective

in keeping up their unique position in market because of its style of production.

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The main products of the company are as follows:

A) D.D.T (Dichloro Diphenyl trichloroethane)

The raw materials used for its production are benzene, chlorine, specially denatured

ethyl alcohol and sodium hydroxide.

The steps involved in the manufacturing process of DDT are:

a) Preparation of mancozeb

b) Preparation of chloral alcoholate

c) Preparation of chloral from chloral alcoholate

d) Condensation of mancozeb and chloral

e) Washing, distillation of mancozeb and casting DDT.

DDT is produced by the condensation of monochloro benzene (obtained from chlorine and

benzene) with chloral (obtained from chlorine and alcohol) in the presence of oleum.

The reactions are complex and the chemical used are most corrosive ones. Therefore the

manufacturing processes are highly sophisticated and equipments used are most modern and

are of special material construction.

Technical DDT is further processed into water dispersible powder (WP) by particle size

reduction after mixing with inert like china clay and wetting and dispersing agents. It is this

formulation that is used in the malaria eradication programme of NMEP.

The technical plant in Udyogamandal unit has a capacity of 1344 TPA of DDT (technical)

and 2688 TPA for DDT WDT. DDT is not used in agriculture and is used extensively for the

control of malaria and kala azar diseases. DDT is marketed in the brand name HILDIT. DDT

is now only sold for controlling vector born diseases.

B) DICOFOL

Manufacturing process:

Dicofol is produced by the chlorination of DDE followed by hydrolysis of the chloro

product. The technical product is formulated as 18.5% EC for use in agriculture. Dicofol is

also active in the protection of many fruits and vegetables from all types of mites‟ species.

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The plant has a capacity of 150 TPA for Dicofol (technical) and 600 KL per annum for EC

formulations. Both the technical and formulation plants are based on the technology

developed, scaled up and optimized by the company‟s in house Research and development.

C) MANCOZEB

Mancozeb is a coordination complex of manganese ethuylenebis dithiocarbonate. It is a

protective leaf fungicide used for the control of a broad range of plant diseases and also for

seed treatment. Being an environment friendly fungicide, it is effective against almost all

types of fungi. Mancozeb is expected to have excellent market potential in both domestic and

international circuits.

Manufacturing process:

Mancozeb is manufactured from carbon disulfide, ethylene diamine, manganese and

zinc salts. Initially the plant capacity is 1000 TPA for Mancozeb (technical) and 1800 TPA

for formulation with provision for expansion at a later stage. The plant is based on the in

house technology of HIL by the Research and Development division.

WATER TREATMENT PLANT

The company has a water treatment plant 4 kms away from the company. Water is taken

from the river Periyar and is processed and used for the production process. Water treatment

plant has 20 staffs directly recruited by the company.

TREATMENT PROCESS:

Water from the river is pumped to the settlings tank and the clarifier settling process is done.

Certain chemicals like alum, lime and chlorine is added and the water is used. Settled water

is pumped to another tank and is used to prepare steam in boilers and is again pumped to the

company through underground pipes warehouses.

The company has 3 warehouses. DDT and Dicofol is stored in a single warehouse,

Mancozeb is stored in a separate warehouse. DDT and Mancozeb is stored in bags while

Dicofol is stored in drums.

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BOILER HOUSE

The pumped water from the water treatment plant is stored in a tank and then into a

boiler and is turned into steam in the boiler house. For each production process different

pressure is needed, so the pressure needs to be adjusted. Steam produced in the boiler house

is used for every heating process in the production of various products.

DUTIES & RESPONSIBILITIES OF PRODUCTION DEPARTMENT:

A) DEPUTY PRODUCTION MANAGER

a) Deputy production manager handles duty in the general shift.

b) As plant manager for specific plants such as DDT and DICOFOL plants, Mancozeb.

He is responsible for effective and efficient operation of these plants.

c) He is responsible for effective and efficient operation of liquid filling plant and water

treatment plant.

d) He has to give the list of required raw materials so as to ensure uninterrupted

production of concerned plants.

e) He has to ensure the quality of finished products.

f) He has to monitor the raw materials, stocks and finished products stocks on daily

basis

g) He is responsible for the unit operation and unit process of concerned plants

h) Responsible for safe operation of plants.

i) Achieving prescribed efficiencies and attaining target of production under his

sections.

j) Discipline and attendance of employees under his charge

k) For all other duties that may be assigned to him from time to time by any of his

superior officers

l) Arranging contract works required for concerned plants

m) Other miscellaneous jobs assigned from time to time.

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B) PLANT IN CHARGE, PLANT SUPERINTENDENT, CHEMICAL

ENGINEERS AND DEPUTY CHEMICAL ENGINEERS

a) Responsible for shift duty and activities of all plants in shift

b) Shift duty coordinating with other departments

c) Planning and controlling the overall activities of all plants in shifts and reporting it to

the production manager

d) General administration in shift of all the plants including occupational health centre,

water treatment plant, boiler, house and workshop

e) Emergency coordinator after office hours, responsible for the performance and

efficiency of the employees under his charge

f) Obtaining targets of works laid down for his section

g) Achieving prescribed efficiencies in his section

h) Discipline and attendance of employees under his charge

i) Other miscellaneous jobs if any

C) ASSISTANT ENGINEER(CHEMICAL) OR SHIFT PRODUCTION

SUPERVISOR

a) Responsible for floor supervision of a specific plant in shift

b) Manpower allocation for unit operations and unit process of their concerned plants

c) Trouble shooting of various operations and their verification

d) Individual attention of plant and machinery

e) Supervision of unit operation and unit processes

f) Responsible for the performance and efficiency of employees under his charge

g) Obtaining targets of works laid down for his section

h) Achieving prescribed efficiencies in his section

i) Discipline and attendance of employees under his charge

j) Other miscellaneous jobs assigned from time to time if any

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D) SENIOR TECHNICAL ASSISTANT

a) Preparation of daily production and stock statement of all the raw materials, packing

materials and finished products

b) Preparation of monthly production reports and monthly stock statement and all the

raw materials, packing materials, work in progress, intermediate products, by

products and finished goods

c) Calculation of raw materials efficiency and raw materials requirements for each

products, month wise and annually

d) Collection of completed long sheets from each unit of various plants

e) Budget estimate preparation and revised estimate preparation of physical stock,

verification of raw materials, finished goods, work in progress etc

f) Preparation of details for monthly report part A and part B

g) Other miscellaneous jobs if any

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4.5 COMMERCIAL DEPARTMENT

A Deputy General Manager (DGM) heads this department. This department is divided into 3

sections namely:

a) Purchase

b) Sales

c) General stores.

The manager is the coordinator of the Production and Commercial department. Under him

there is one Commercial Manager. He is the chief of the Commercial Department. Under the

Commercial Manager comes the Deputy Commercial Manager who looks after mainly

offices of purchase section. Under him there are 2 officers, sales officer and material officer.

4.5.1 PURCHASE DEPARTMENT

Deputy Commercial Manager is the head of this section. Under him, there are 2

superintendents who supervise the activities done by the clerical staff.

Purchase orders are classified into 2. They are:

a) Order below Rs 2 lakhs and

b) Order of and above Rs 2 lakhs

For the purpose of order below 2 lakhs they keep a list of suppliers called vendors list. From

vendors list they choose the appropriate supplier and sends enquiry notes to them. If they

reply positively, i.e. if they have stock of materials which the company intends to purchase,

then the company can send a purchase request to them.

For order of and above Rs 2 lakhs, the company will put tender in newspaper. Filled up

tender forms and earnest money will be received up to a specific date. The tender will be

opened at a particular date and the supplier who is willing to give the material at the lowest

cost will get the purchase request. A separate file is kept against each purchase request.

The supplier who is willing to supply the materials at the lowest cost will get the purchase

order. This is the second step in a purchase deal. Payment is done in any one of the following

3 ways:

a) At thirty days credit

b) Documents through bank

c) Advance against delivery

After the materials are delivered to the stores by the supplier, the store issues a material

receiving note and passes it to the purchase section. After receiving the MR note, file related

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to that order will be closed. After the delivery the stores will inspect the material and in case

of any damages it takes necessary steps to get back the money.

The major items purchased by the company are:

Alcohol, buten dio, chloral, caustic soda lye, calcium tetra chloride, china clay, carbon terla

chloride, castic soda sulphide, carbon di sulphide, chlor pyieopostech, calcium lingo,

suphonate, eplichlora hydrine, diamine, expioxidisded, soyoben oil, hexa chlora, cyclo

pentad lime,hydrated calcium sala cate, hexamine, manganese sulphate, mono chloro

benzene, oleum soda ash, sodium lingo sulphonate, thionye chloride, zinc chloride, zinc

sulphate.

4.5.2 SALES AND MARKETING DEPARTMENT

Sales and Marketing Department is another section of the commercial department. This

department functions as per the instructions from the head office. The sales officer heads the

section and the superintendent of sales section, clerks and apprentices assist them in

rendering their duties.

The marketing of the finished products is planned and coordinated by the corporate office at

Delhi. After canvassing the order, the largest order is finalized for each year. The corporate

sales office headed by director (marketing) issues dispatch instructions to the manufacturing

units. On that basis each manufacturing unit schedules its production plan. All the activities

relating to marketing of the product like getting export orders and sales promotion is done by

the head office at New Delhi. Since the use of DDT for agricultural purpose is banned, now

only the orders from the director of health service for malaria eradication programme is met

(NMEP).

Next action is taken by the purchase section based on the PR forwarded to the purchase order

to selected suppliers who supply the material. The marketing division of the company is

promoting the products of International Panacea Ltd, New Delhi.

The company added several innovative, imported and locally manufactured pesticides to its

portfolio. Now the company provides a complete range of products to the farmers.

The company has a central marketing set up controlled and coordinated by the head office

with regional sales office at Delhi, Hyderabad, Kolkata, Nagpur, Ahmadabad, Coimbatore

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and Cochin. For Kerala region the branch office is at Cochin. Also the company has

appointed nearly 50 dealers in Kerala state.

The Udyogamandal sales section mainly does the dispatch service. The procedure is as

follows:

As per the dispatch advice, sales section plans “schedule dispatch” of finished products and

miscellaneous items. Disposal of by products, miscellaneous and scrap items also is a

function assigned to the sales section. For this purpose the section has to contact different

manufacturing agencies, traders and dealers. The by products are a) waste recovered

sulphuric acid from DDT plant. Miscellaneous items include scrap, damaged cartons, waste

paper etc.

On the basis of availability of stock of finished products ready for dispatch, sales section

instructs empanelled transport to place truck for loading of the material to each destination

for the entry of the truck inside the premises of the factory. Entry permission is issued by the

security at the main gate. The security officer, after checking the trucks and receiving the tool

list permits the trucks inside. Thereafter the truck is weighed and the type weight is recorded.

The truck is then accompanied by a security and parked at the concerned ramp.

Simultaneously, instructions are given to the production department and security showing the

packaging details and the products. The loading crews are also given instruction. After

loading, the production supervisor issues detailed list of products loaded. Then the truck is

again weighed. On the basis of weigh bridge report signed by security, documents are

prepared.

Firstly, material gate pass is prepared. If the transaction is interstate, form 26 (central sales

tax delivery note) is sent along with the consignment. If the material is excisable, invoice

cum excise gate pass is also raised. A copy for transporter and an extra copy is also sent

along with the consignment. As per the customs and central excise rule, excisable materials

should not be cleared without debiting central excise duty. Central excise invoice shows the

basic price of material, total cost of consignment and sales tax. The document is a proof for

the debit of central excise duty to excise department.

If the transaction is inter unit transfer (stock transfer), then after preparing the above

mentioned documents, debit note is raised and sent to the concerned regional office. If it is a

sales consignment, “commercial invoice” is raised and sent to the concerned parties.

Immediately after the consignment, the details of dispatch are communicated to the third

party. Information is also sent to the corporate office. Every transaction is recorded on daily,

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monthly and yearly basis and these reports are submitted to the general manager

every day and then communicated to the head office.

4.5.3 GENERAL STORES

The General Stores are managed by the material officer, senior store keeper, junior assistant

and helpers assist him in rendering his duties. The main functions of the general stores are:

a) Receipt and issue of material

b) Inventory control

In receipt of material, first purchase request is raised. This may be done in 2 days.

1) Upon the request of the user, stores raise PR. This is because the user can only access

the requirement of some average moving material used by them. But the PR will be

located through stores only.

2) Stores raise PR for maximum moving item. In the case of such items, the annual

requirements per year is forecasted based on production forecast and communicated

to the stores at the beginning of the year.

But both the PR will be routed through stores only.

Next action is taken by the purchase section based on the PR forwarded to purchase section.

They place purchase order to selected suppliers who supply materials within due date. After

the material is supplied to the store by the supplier, store issues material receiving notes to

the purchase section. The stores also inspects materials arrived for any damages or shortage

of materials. In such case the store initiates procedure to get the money back. This may be

done either from the carrier in which the materials have arrived or the supplier or the

insurance company. A copy of inspection report and material receiving note are also sent to

the bill section in accounts department.

Inventory control means controlling the stock of materials so as to avoid unnecessary

stoppage of production at minimum cost. Non moving items are removed at the earliest

opportunity. If the materials needed by the plants are out of stock, the production at the plant

will be stopped. The duty of the stores is to keep the materials at the right place. Materials are

purchased based on production schedules. Otherwise the quality assessment of materials

purchased will be difficult. Maintenance materials will also be available at the store at

anytime.

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DUTIES AND RESPONSIBILITIES OF:

A) COMMERCIAL MANAGER AND SUBORDINATE OFFICERS IN

COMMERCIAL DEPARTMENT

1) Commercial manager is the head of the department. He is assisted by the deputy

commercial manager and other subordinate officers. As per the present set up sales

section and general store are only under his control.

2) Sales officer is the immediate supervisor of the sales section. He is responsible for the

activity in sales section. He coordinates the activities in sales section. Central excise

and customs related to sale of unit products, transfer of stock of products, export if

any of the products,

works connected with dispatch of material and other related work regarding sales of

waste materials etc.

3) Material officer is the immediate supervisor of the general stores. He reports to the

commercial manager. Material officer is the custodian of material received in the

company for various purposes, its inspection either by himself or by concerned

officers of the user section, up keeping of materials collection of material from

transporting agencies as per LR/RR as per purchase order, issue of materials on

requisition raised by concerned departments. Replenish materials as required by

norms fixed by the company.

B) PURCHASE SUPERINTENDENT

1) The Purchase superintendent is in charge of the section and he is assisted by different

assistants.

2) He is to allocate work to his assistants

3) He has to prepare the tender document for different purchase incorporating the

technical requirements finalized by the user department.

4) Scrutinizing the tender prepared by the assistants, approving and forwarding to

deputy commercial manager for final approval

5) Checks each and every file forwarded to the deputy commercial manager so that

proposals are in line with the laid down conditions of purchase by the company and

also to ascertain that the proposals are in line with the CVC guidelines

6) Follows up with the assistants for speedy implementation of different activities

7) He is the custodian of the registers and records maintained in the purchase section for

different activities

8) Follows up with different suppliers so that the ordered materials are supplied in time

specified in relevant orders

9) He is to ascertain the commercial condition laid down for different purchases and

contracts in the section

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He is directly in charge of storing materials in the bonded ware house, bonding and

clearing the material, follows up with customers central excise departments and other

engines connected with the purchase.

He is the head of the section and is responsible for the effective functioning of

different categories of assistants working under him and is authorized to sanction the

casual leave of the subordinate assistants.

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4.6 PERSONNEL DEPARTMENT

The Personnel Department is headed the Personnel Manager. HIL draws its strength from its

human resources, and hence the company gives utmost priority for the development and

upgrading of its skilled manpower. It has made numerous efforts and thrust towards optimum

utilization of manpower to built up a healthy work culture and to achieve higher goals of

productivity as well to meet the challenges of the future. The Udyogamandal unit has a

strength of 423 employees out of which 73 employees come under the supervisory/

managerial cadre and 350 under the workmen category under the Industrial Disputes Act,

1947.

The Personnel Department of HIL deals with the manpower requirements of various

departments. All the activities like recruitment, training and development programmes,

performance evaluation, salary fixation, transfer and promotion, welfare activities and

industrial relations are done by the personnel department. They conduct induction program

for the new entrants. The department also plans the various in house training programs for

the laborers. They also deal with the planning of various incentives programs to be given to

the workers. The department deals with issues regarding separation of work force from the

firm.

Some of the other programs done by this department are compensation program,

placements, performance appraisal and record keeping. HIL draws its strength from its

personnel department. Hence the company gives utmost priority to the development and

updating of its skilled manpower. The company regularly conducts training programs for the

workers as well as the officers.

The personnel department also has a welfare officer who is responsible for meeting the

employees‟ social benefits and the general administration department meets requirements of

office staff, stationeries and other necessities. The time officer maintains the employees‟

attendance and leave details.

Recruitment and promotion

Recruitment of potential employees and promotion of existing ones is done according to the

industrial employment act, 1946.

Induction

Upon selection, each employee is made to visit every functional department of the unit and

gets acquainted with the kind of work and people, for 3 to 7 days. The employee then

submits a report as to what he learnt to the personnel department. He is then placed in the

relevant department.

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Performance appraisal

Every employee is selected on probationary basis for 6 months. On the satisfactory end of six

months he is made permanent. Continuous performance appraisal of employee is done each

six months, quarterly and annually by the head of the department. The criteria for appraisal

of workers are:

a) Knowledge of work

b) Job performance and application

c) Attendance and punctuality

d) Behavior and attitude towards colleagues and supervisors

e) Dependability and integrity etc

Employees with unsatisfactory appraisals are sent intimation for relevant training

programme, explaining the scope for improvement.

Training and development

Workers are given semi statutory training according to schedules. In terms of fire, safety and

hazardous waste management, in house training session with external faculties are conducted

which are followed by appraisals from the training officer as well as from the management.

Development programs for officers are conducted during which they are given training and

classes on supervision, managerial procedures, attitudinal changes, getting along with

employees etc.

Industrial relations

The company maintains healthy and harmonious relations industrial relations. Industrial

relations refer to the relationship between employees and employers in the workplace,

usually concerning matters of work, rights and responsibilities of either side.

HIL has 3 trade unions:

a) HILEU (CITU)

b) HILWU (INTUC)

c) HILEO (BMS)

Grievance handling

HIL has an internal grievance redress machinery to handle employee‟s grievances regarding:

Wages and payments, overtime, leave, transfer, promotion, seniority, work assignment,

working condition and interpretation of service conditions. Disputes of general applicability

or those of considerable magnitude are outside its scope. The internal grievance machinery

meets once in every fortnight. It has committees at two levels.

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a) Lower level committee

The permanent members are Deputy Personnel Manager who acts as the convener and

deputy finance manager. Rotating officer is the Deputy Manager/ officer of the concerned

department or section.

b) Upper level committee

It is chaired by the general manager. The permanent members are:

General Manager, Deputy General Manager, Deputy General Manager (P & A) who acts as

the convener. The rotating member is the HOD of the concerned department.

The employee can present his grievance verbally to the HOD. If the employee finds no

solution, or that the decision made is unsatisfactory, he can present a written grievance to the

Deputy General Manager (P & A) through the HOD, which is forwarded to the lower level

committee. Decision by the lower level committee is communicated to the employee through

deputy personnel manager and a copy is forwarded to the convener of the upper level

committee.

In case the employee finds the decision made by the lower level committee to be

unsatisfactory, he can present his grievance along with the decision made by the lower level

committee to the upper level committee through the Deputy General Manager (P & M). The

decision made is communicated by issuing orders.

The employee can also approach the MD to through proper channels to present the

grievances. HIL, Udyogamandal unit also has a practice of employees venting off their

feelings before the GM every Friday.

Welfare measures for employees:

Medical

Company allows medical reimbursements to the employees and their dependents for

treatment in approved hospitals in Cochin including allopathic, ayurvedic and homeopathic

medical institutions. After verifying the emergency, medical bills from unapproved hospitals

are also considered for reimbursement, though with a certain percentage of deduction from

the bill amount.

HIL maintains a dispensary with a registered medical practitioner and full time nursing staff

with all first aid facilities. First aid boxes are installed at various points within the plant.

Ambulance and ambulance room

In cases of emergency an ambulance service is also provided by the company.

Health benefits

Annual medical checkup including blood test, ECG etc are conducted for the workers as well

as for the managerial and supervisory staff with the help of an approved medical institution.

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Group accident insurance

All employees are covered under the group personal accident insurance scheme of the

company, according to their eligibility.

Family welfare benefit

Employees undergoing vasectomy/ tubectomy shall be entitled to one increment plus special

leave for 15 days to ladies and 9 days to gents.

Maternity benefit

90 days maternity leave is permissible for eligible female employees.

Milk supply

All the employees are supplied with ¼ litres of milk every day.

All categories of employees are issued uniforms, safety shoes and umbrella every

year.

Certain workmen are issued with mull cloth, washing soap and oil every month

The employees are eligible for bus subsidy of actual bus fare to the nearest bus stop

subject to a maximum of 30 kms.

Conveyance and allowance

Allowances are given to employees using their own conveyance for official purposes and are

as follows:

Cost of 15 litres petrol to employees under industrial disputes act and cost of 37 litres petrol

to managerial and supervisory staff.

Service award

Employees under ID act who have completed 18 years service are awarded an HMT watch

costing not more than Rs 650 with 50% increment.

Educational benefits

Children educational allowance of Rs.600 per child (maximum 2 children) is allowed to

employees every year.

Employees who are attaining higher qualifications in their line of promotion are

eligible for reimbursement of examination fee and special leave for actual days of

examination.

Unit level classes as part of workers education scheme are conducted periodically

under worker teachers with facility of 10 days study tour to other institutions.

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HIL township

Company maintains a well structured township with 81 quarters for employees of various

categories

Recreation

HIL club provides entertainment facilities to our employees and their family members. A

volleyball court and a children‟s park are also maintained by the HIL club.

Employment on compassionate grounds

In the event of death of an employee while in service, one of his dependent (wife or son/

daughter aged above 18 years) is employed in service.

Special leave and travel allowance

Special leave and TA are allowed to employees who attain competitive success in sports and

games in state/ national levels.

Leave travel concession

Employees are allowed leave travel concession to anywhere in India once in 4 years and

home tour once in 2 years as per rules. Flexibility to encash the leave travel concession

instead is also allowed.

Canteen

Company maintains a canteen with arrangement of meals, tea and snacks to about 550

employees per day including contract employees. The canteen management committee

includes six persons, including three representatives from workers and 3 from managerial

and supervisory staff for controlling the canteen functions.

Advances

Employees are eligible for getting the following advances according to their seniority and

eligibility.

- House building advance: up to 40 lakhs

- Vehicle advance to M&S staff up to Rs.80000.

- Loan for TV/fridge/scooter ( to employees under ID act) Rs 35000 each to 20

employees

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- Cycle advance Rs 1000 each to 100 employees

- School advance: Rs 1500 per year to employees who have school going children

- Onam advance: Rs 3000 per year

- Festival advance: Rs 1000 per year

General administration

This section takes care of purchases of office stationary, computers and peripherals and

vehicles for the company. It also maintains inward and dispatch of letters and couriers,

telephone network within the company and outwards and administration of company‟s guest

house

To make the necessary purchases, the intended section submits its requirements

specifications to the general administration section. the section averages the requirements of

every section, invites competitive quotations from vendors. The one with the lowest quote is

selected, and items are brought from them.

Time office

The time office maintains the attendance and leave details of the employees. Salary of each

employee is decided by the payroll section based on the information obtained from time

office.

Every employee has a permanent badge number, which is the basis of the punching system

maintained in the company. HIL has a computerized punching system since 1990, which

records the badge number of the employee and time of his entry/ exits accurately using the

electronic identity card issued to each employee.

The work shifts of the unit are as follows:

1st shift 12 midnight to 8am

2nd

shift 8am to 4 pm

3rd

shift 4pm to 12 midnight

Thus, the unit maintains twenty four working hours all week. Administrative section has a

general shift from 9:00 AM to 4:30 PM, with Sundays as holidays. Heads of every

department are non punching staff, as they are liable to be present on duty 24 hours a day.

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Employees are entitled to the following kinds of leave:

- For every 30 days work, the employee can have two and a half day earned leave. For

every absence in work, the employee loses a fraction of his earned leave.

- Employees can have 10 days full day sick leaves per year

- Employees can have 15 casual leaves per year

- Employees can have extraordinary/ medical leaves, which do not affect his salary.

- Employees can take short leave (2 hours per day), in case of being late for work or for

emergencies.

- Company has 13 days as national holidays

- First and the third Saturdays are holidays for the administrative section

- For overtime credited, the employee can have compensatory leave. Earned leave can

be credited up to 300 days, and can be encashed every 15 days. Similarly, 90 full sick

leave days can be encashed at the time of retirement.

Personnel and time office management system

The personnel and time office management system implemented in the P&A department is

an organized combination of people, hardware, software, communication network and data

resources which collects, transforms and distributes information in the administrative

department. It is a latest add on to the company which effectively collects, maintains, analyze

and report on people and jobs. The system is gradually replacing the traditional manual work,

which is cumbersome and time consuming.

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Duties and responsibilities

A) Deputy general manager (P & A)

1) Overall in charge of personnel and primary administrative function, supervision and

coordination of activities of personnel welfare including general administration.

2) Manpower planning, recruitment, selection, induction training matters relating to

promotion, grant of annual increment and other matters related to general

administration.

3) Responsible for career planning and training of employees

4) Interaction with trade unions

5) Liaison work labor authority and government official or other concerned officer

6) Looking after all legal matters

7) Arranging or updating of statutory license

8) Superintendent providing medical facilities to employees as per status or agreement

with the union.

9) Maintains up keeping of transport vehicles or facilities required for the company

10) Superintendents of welfare activities as per relevant statutes

11) Administration and control of attendance or leave of all employees

B) Deputy manager (personnel)

1) General administration of general service, welfare section, time office, dispensary,

security.

2) Supervising the function of personal department supervising work statutory

obligation of arranging, renewing license etc.

3) Oversee and monitor works connected with renewing arranging license etc.

4) Superintending the running of canteen and welfare of employees

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C) Section medical officer

1) Duties provided in the factories act and other relevant statutes.

D) Personnel officer

1) General administration and coordination of personnel section on the advice of deputy

general manager( P&A)

2) Supervision of fixation of wages, annual increment, stagnation of employee

3) Superintending the activities of general service section.

E) Superintendent (welfare)

1) General superintendence of welfare activities of employees including contract

workers

2) Providing returns to statutory bodies about all employees

3) Immediate controller of canteen

F) Superintendent (general service)

1) general superintendence of taking and updating of licenses/ remitting taxes and other

statutory payments as required by law

2) immediate controller of company

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4.7 RESEARCH AND DEVELOPMENT DEPARTMENT

HIL has a fully fledged Research and Development centre in Gurgaon, Haryana as well as at

the Udyogamandal unit, recognized by the Government of India. It is affiliated to the

Ministry of Science and Technology. Funds are allocated for research activities in the annual

budget of the organization. The department of R & D is fully equipped. It has trained and

experienced manpower with sufficient farm area for conducting trials for product

performance.

The department is headed by Research and Development Manager (RDM) who reports to the

GM. The RDM is assisted by the development chemist, Q.C.O, a junior assistant, an analyst

and a helper. The R&D department of the company is fully equipped with the latest

technologies, trained and experienced manpower. The R&D department at Udyogamandal is

concentrating on the development of formulation technology and troubleshooting operations

in the production plants while the Gurgaon centre is engaged in developing technology for

technical pesticides apart from filed evaluation of toxicity studies and development or

effluent treatment and pollution control techniques etc.

Almost all the new formulations marketed by the company are based on the process know

how developed by HIL itself. The R&D centre developed indigenous technology for three

chemical pesticides i.e. Mancozeb, Carboxin and Dicofol. The new technology developed

indigenously reduces the carbon tetra chloride formation which is an ozone depleting

substance. Every industry must strive to reduce its energy consumption by efficient

manufacturing and by adopting new technologies.

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DUTIES AND RESPONSIBILITIES:

1) Development of technology for generic pesticides and their intermediates

2) replacing wet analysis by instrumentation method for analytical estimation of

pesticides and their formulations

3) Development of better recipes for the existing pesticides formulations, to improve

cost efficiency by use of locally available indigenous raw materials.

4) Improvement in the existing processes to enhance efficiency. Use of less toxic and

eco friendly materials and to minimize pollution

5) Development of recipes for eco friendly bio pesticides formulations to replace the

existing toxic chemical pesticides formulations

6) Development of monitoring methods by instrumentation for different pesticides and

their intermediaries for better process control.

Facilities in the department includes laboratories for pesticides and residual analysis for

pesticide, quality control laboratory which checks the quality of raw materials, intermediates

and final products and a library stocked extensively with books from all over the world

covering all aspects of the industry.

The R&D unit in Udyogamandal concentrates on development of formulation technologies.

Formulations developed in the laboratories undergo a pilot test, positive outcome of which

leads to more extensive testing. Formulations testing positive are approved for production.

The department also undertakes troubleshooting operations in the production plants and

monitoring the soil, air and water of surrounding areas continuously.

Almost all the new formulations marketed by the company are based on the process know

how developed by HIL itself. The R&D department had developed indigenous technology

for the Pesticides, Carboxin, Mancozeb and Dicofol which replaces carbon tetrachloride, an

ozone depleting substance with ethylene dichloride which is accepted by the UN.

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4.8 QUALITY CONTROL DEPARTMENT

This department is headed by the Quality Control Officer under him there is a quality control

supervisor assisted by 2 analysts, a lab assistant and a helper.

The duty of this department is to ensure quality of products at every level of the

process according to the standard norms. Samples of raw materials are tested before using

them in plants. Samples of process in progress products are taken after each process is tested.

The process samples should keep the exact process and are tested for quality. If any process

samples are not up to quality it will be corrected in the next stage of process. If all the

process samples keep the exact quality then the final products will also be of exact quality.

The final products are also checked for quality. Then only they will be ready for packing.

Some of the quality control policies adopted by HIL are as follows:

The main aim of the quality control department is to ensure the quality of the products at

every level of process according to the standard norms. The samples of raw materials are

tested before being used in plants. Samples are taken at each stage of production and are

tested to ensure quality. The final products are also checked for quality before the packing is

done.

The quality policies of HIL are as follows:

1) HIL Udyogamandal is committed to provide quality pesticides that ensures total

customer satisfaction

2) To meet its commitment, they adhere to the quality standards at all stages of

operation

3) They continually improves the systems and processes

4) They deliver products on time

5) Ensures productivity, safety and environmental performance.

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DUTIES AND RESPONSIBILITIES:

A) Quality Control Officer and Subordinate Officer

1) Quality Control Officer is reporting directly o the assistant manager in charge of the

quality control department who is responsible for providing technical guidance,

coordination etc.

2) Maintains and upkeeps the quality and control regarding products

3) Removal of licenses and other related works regarding quality and maintains issue of

quality certificates to other products

4) The inspection of materials (chemicals) used for production purposes

Quality control supervisor assists the quality control department head in the above

works coordinating the quality analysis of products by analysis.

The quality control department has a health and safety policy that is followed in HIL:

1) Protect employees by imparting timing and providing personal protective equipment

wherever necessary.

2) Protection equipments to be made available by incorporating built in safety system

using modern engineering technology

3) Protect environment by imparting training, monitoring and controlling the effluent

discharge as per the stipulation laid by Kerala state pollution control board

4) Maintaining good and safe working environment

5) Monitoring health conditions of employee periodically

6) Aim for zero accident by an investigator analyzing accidents and implementing

recommendations suggested to prevent recurrence.

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4.9 ENGINEERING DEPARTMENT

The Engineering Department of HIL is headed by the Engineering Manager who is assisted

by Deputy Engineering Managers. The Deputy Engineering Managers consist of the

Mechanical Deputy Engineering Manager, Electrical

Instrumental Deputy Engineering Manager and the Civil Engineering Deputy Manager. Each

deputy managers are assisted by almost 15-20 workers which include the blacksmith, boiler,

welder, fitter, assistants, electrical suppliers, masons, draftsman and helpers.

Mechanical Engineering section looks into the problems related to the working of machines

and instruments. Mechanical engineering works in the company from different plants and is

done in the mechanical maintenance system.

Electrical Engineering Department looks after all the electrical and instrumentation works of

the company. Civil Engineering section works out the infrastructure and maintenance of

construction of plants and other buildings in the company. Each plant has a workshop for the

engineering works guided by a senior engineer.

DUTIES AND RESPONSIBILITIES

The engineering department functions under the engineering manager as H.O.D. There are

four levels of subordinate officers functioning under him.

They are as follows:

Deputy Engineering Manager

Senior Engineer

Engineer

Assistant Engineer

Supervisor

Deputy Engineering Manager

1) Responsible for all works of plants and machinery in his scope

2) Total administration of the section of the engineering department

3) Inspection of materials and spares received at stores

4) Preparation of estimate and awarding works

5) Liaison work with statutory authorities maintaining records and history

6) Reporting consumption of power and fuel

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Senior Engineer

1) Responsible for all works plant in his scope

2) Performance testing of machinery and equipments

3) Supervision of contract work

4) Arrangement of spares and materials

Engineer

1) Responsible for all works in his scope

2) Performance testing of equipments

3) Procurement of spares and materials

4) Supervision of contract works

Assistant Engineer

1) Assisting his immediate supervisor for all works

2) Continuous inspection and giving guidance to workmen

3) Making arrangements to get spares, materials from stores

4) Trial taking to pay inspection of machinery instrument at site

Supervisor

1) Responsible for all work entrusted to him

2) Continuous supervision of workmen and proper guidance

3) Assisting the superior

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CHAPTER - 5

SWOT ANALYSIS

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5.1 STRENGTHS

One of the largest producers of quality insecticides in India

Has a monopoly market for DDT in India.

Advantage of being backed by the govt. of India, in terms of funds and operations.

Highly experienced workforce.

Well structured departments and procedures.

Easy availability of raw materials.

Work force of HIL Udyogamandal is very highly experienced and possesses technical

knowhow of doing things. Most of the employees are from nearby places. HIL has an

enviable track record of producing the required amount of DDT for the insecticide

eradication program which was put forward by the government also because of the peculiar

nature of products like DDT, its production by private parties is banned by the government.

The easy availability of raw materials from nearby factories like TCC, FACT etc. reduces the

transportation cost.

5.2 WEAKNESS

Absence of computerization

Lack of automation

Slower assimilation of technological advancements compared to private competitors.

Slower rate of fresh recruitments.

No fresh recruitments after the retirement of current, aged employees causes a decline

in workforce.

Being a public sector firm, this unit has got various limitations. Because of the peculiar

nature of the products produced by the firm, there is no marketing department. The sales are

done through the various regional sales offices according to the instructions from the head

office. None of the products of the company are automated beyond an extent. The various

departments of HIL are not computerized which in turn reduces efficiency.

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5.3 OPPORTUNITIES

Growing necessity and demand for quality pesticides.

Untapped potential markets in foreign countries.

Introduction of customized products.

Diversification in other areas like bio technology

Better implementation of information system can be used to meet the growing

demand of the market.

Company can give more concentration in areas of eco friendly products.

The opportunities in front of HIL are many. The pest born diseases are still very much

prevalent in many parts of and Africa. Products can be exported to all these foreign markets

if the government can give more funding to the company. The opportunity for HIL can also

be explored by thinking about product diversification.

5.4 THREATS

Entry of multinational companies.

The company has to strictly follow the standards prescribed by the statutory

governmental agencies like national pollution control board and Kerala State

Pollution Control Board.

Changing governmental policies regarding production and usage of pesticides.

Recent ban on endosulfan and its concerned issues.

Although the company is protected from government regulations, it is going through a lot of

protests due to the adverse impact created by its products. Various international societies

pointed HIL as the main culprit for the environmental degradation that has happened in this

vicinity. Endosulfan, which was one of the main products of the company is a highly toxic

substance to living creatures and has left an adverse impact on the people and the

surroundings nearby. It has the ability to remain in the environment without degradation for a

long period of time. Moreover, the waste management of the company is not much effective.

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CHAPTER – 6

FINDINGS, SUGGESTIONS

AND CONCLUSION

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6.1 FINDINGS

1) HIL has a monopoly in the DDT market

2) The company has government support

3) Has 50 years of experience and maintains a strong brand value

4) Company‟s products are of excellent quality, hence they have access to foreign

markets

5) All the departments in HIL are well structured

6) Government is giving more thrust to the agricultural sector, hence the future looks

good for the company

7) HIL has a lot of qualified, experienced and honest staff.

8) In HIL, shift method is implemented. This ensures higher productivity as work is

carried on for 24 hours

9) Payments to employees are made without fail which helps in maintaining industrial

peace and increases the efficiency of people at work

6.2 SUGGESTIONS

1) The company should diversify its operations in to other related areas

HIL has an experience of over 50 years in the chemical industry field. With ample support

from the government, HIL should think about shifting its operations to other related products

(eco-friendly) which has no harmful effects on the environment.

2) Increase investment in human resources

As the company was started way back in the 1950s, a lot of workers have retired and a lot are

nearing retirement. So the company must think about investing in their human resources and

hence recruit new employees to the firm

3) More efforts should be made to get big international orders

The company should be more active so as to get international orders for their products and

thus explore foreign markets. International sales can increase profits.

4) Increase investments in research and development so as to produce eco friendly

products

The company‟s reputation has been seriously affected with the recent endosulfan ban and

issues relating to it. HIL should think about producing products that are more eco friendly so

that they can earn peoples support and faith and also help to create a pollution free

environment

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5) Make people more aware about the benefits

HIL being a public sector company gives lot of benefits for all its employees. Hence, the

employees of HIL should be made aware of such benefits they can avail while working in

HIL.

6) HIL should think about computerization

In this era of industrialization HIL should think about computerizing. Computerizing will

ensure easy and smooth flow of work with less number of laborers. It will also ensure a

reduction in cost

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6.3 CONCLUSION

Hindustan Insecticide Limited is one of the leading pesticide manufacturing companies in

India and is of national importance. Highly competent research and development department

in the company and use of latest and innovative technologies has enabled it to become a

leader in the industry. Entrance of multinational companies has not affected the company‟s

leadership in the market share. At the same time HIL is adamant about fulfilling its social

responsibilities as well. The atmosphere maintained at the work place is highly satisfying for

the employees.

However, being a public sector enterprise, survival has become

difficult in the face of privatization. Continuous effort of the management and support of

government bodies is essential to improve the standards of the company.

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CHAPTER - 7

BIBLIOGRAPHY

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The information required for the completion of this project was collected from the

following sources:

1) http://www.hil.gov.in/(S(iprppxi1nt0rlq45wgoi1145))/udyogmandal.html accessed

on 12th

june,2012.

2) www.scribd.com accessed on 12th

June, 2012.

3) Articles and books provided by HIL like complete technology book on pesticides,

insecticides, fungicides. Author: H.Panda, database of top pesticides, insecticides and

fungicide industries in India. author: NPCS Board of consultants and Directors

4) Information collected during personal interactions with employees of HIL.

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