ORGANIZATIONAL STUDY REPORT

AT

TRAVANCORE CEMENT LIMITED

Submitted By

SHINU JOSEPH

S3 MBA

LOURDES MATHA COLLEGE OF SCIENCE AND TECHNOLOGY

TRIVANDRUM

ACKNOWLEDGEMENT

I thank Almighty for giving me courage, enthusiasm and perseverance to handle the project work.

I acknowledge with gratitude Mr……………………………………………………………………..,Asst professor, MBA department for all the guidance and help rendered for the successful completion of this project work.

I also make use of this opportunity to thank Mr. Joseph Dost, Manager Personal and Administration department, right from the initial stage of the conceptualization and the completion of my Organizational Study

Finally I am grateful to each one who has assisted to help me directly and indirectly for the completion of this work.

SHINU

ABSTACT

The organization selected for the purpose of the study was Travancore Cement Ltd. It is a Kerala

Government undertaking company. The study is mainly based on details collected from each department.

Each and every activities of the company is studied carefully with the data available. The data is available

from various sources like past records of the organization, direct interaction with concerned person or by

personally visiting each department. The study helps in obtaining practical experience of the operations in

an organization.

CONTENTS

CHAPTER-1INTRODUCTION

INTRODUCTION

The Travancore Cement Ltd. Was incorporated in the year 1946. The master mind behind the

setting up of the factory was late Sri.C.P. Ramaswamy Iyer Diwan of Travancore. He realized the vital

role of cement in industrial development of Kerala. The company was promoted by state of material other

than conventional lime stone. The main raw material is lime shell, which is dredged out of Vembanad

Lake. The company was promoted by the state of Travancore in association with Tamilnadu. Later the

Govt. of Kerala acquired the company with a share of 91% and the rest by the public. The share of the

company have been listed in Stock Exchange of Cochin and Chennai.

The company was promoted by M/S Essel Ltd Mumbai and technology tie up was made with

M/S F.L.Smidth & Co.Denmark. The company is premier project making company in Kerala. It is the

only public sector which manufacturing and markets White Cement and Cement Paints.

Till 1974 the company was manufacturing both white and grey cements in the same plant. The

company switched over to the exclusive manufacturing of white cement as the demand for the white

cement went up and the Govt. of Kerala took over the management of the company. The installed

capacity for the production of white cement is 30,000 tonnes per annum.

For the last 64 years of its inspection, it has diversified its activities to related areas. Besides Super

Shelcem Cement Paint, the company has added to its product range, Sheltex Acrylic Emulsion Paint for

interior and exteriors and Shelprime Cement Primer. Sheltex Acrylic Emulsion Paint and Shelprime

Cement Primer were later withdrawn.

The Travancore Cement Ltd is the only manufacturer, perhaps in the whole world, producing white

cement from the raw material other than conventional lime stone. The main raw material is lime shell,

which is dredged out of Vembanad Lake, one of the most important backwaters of Kerala.

SCOPE OF THE STUDY

The study is about the major functioning of Travancore Cements Ltd. Nattakom, The

study is mainly based on the details collected from each department. Each and every

activities of the company is studied very carefully with the data available. This study is very

beneficial to the future managers as they are put into the real life situations. A study on all the

departments can help to improve the process and there by an over all improvements in the

company’s performance can be made.

OBJECTIVE OF STUDYThe objectives of the study are:

To get familiar with the organization.

Getting practical experience regarding the organisational function.

To learn about the policies and functions of the organisation

To understand the culture in the organisation and its effect on employees.

To get industrial exposure and experience.

To understand the marketing and production methods To acquire knowledge about the managerial aspect of the firm.

REASON FOR SELECTING THE COMPANY

The following are the main reasons why I selected TCL for my organizational study:

TCL is one of the oldest manufacturing industries in Kerala.

TCL have sufficient number of departments and also the one that is engaged in active performance in the industry.

TCL is an organization working with a big work force.

TCL is one of the famous organization in Kerala involved in the manufacturing activities.

DATA PROCESS

METHODOLOGY OF THE STUDY

Research methodology is a way to scientific and systematic research for pertinent information on a specific topic and solves the research problem.

METHODS OF DATA COLLECTION

The data collected constitutes both primary and secondary data.

PRIMARY DATA

Primary data are those which are a fresh and for the first time and thus happen to be original in character. Primary data were collected by direct interview with the authorities and staffs and by observation and participation.

SECONDARY DATASecondary data are those which have already been collected by someone else and which have been passed through the statistical process. Secondary data were collected from various records kept in departments, company profiles, magazines and websites.

LIMITATIONThe following are the limitations which I found during my organization study:

Some of the data were treated confidential and hence it was difficult to get the same.

Most of the datas’were collected through interviews and so the information is subjected to be biased.

A detailed interview schedule couldn’t be administered to get primary data.

CHAPTER 2INDUSTRY PROFILE

CEMENT INDUSTRIES IN INDIA

The cement industry comprises of 125 large cement plants with an installed capacity of 148.28

million tonnes and more than 300 mini cement plants with an estimated capacity of 11.10 million

tonnes per annum.

The Cement Corporation of India, which is a Central Public Sector Undertaking, has

10 units. There are 10 large cement plants owned by various State Governments. The total

installed capacity in the country as a whole is 159.38 million tonnes. Actual cement

production in 2002-03 was 116.35 million tonnes as against a production of 106.90

million tonnes in 2001-02, registering a growth rate of 8.84%. Major players in cement

production are Ambuja cement, Aditya Cement, J K Cement and L & T cement.

Apart from meeting the entire domestic demand, the industry is also exporting

cement and clinker. The export of cement during 2001-02 and 2003-04 was 5.14 million

tonnes and 6.92 million tonnes respectively. Export during April-May, 2003 was 1.35

million tonnes. Major exporters were Gujarat Ambuja Cements Ltd. and L&T Ltd.

The Planning Commission for the formulation of X Five Year Plan constituted a 'Working Group on Cement Industry' for the development of cement industry. The Working Group has identified following thrust areas for improving demand for cement;

i. Further push to housing development programmes;

ii. Promotion of concrete Highways and roads; and

iii. Use of ready-mix concrete in large infrastructure projects.

Further, in order to improve global competitiveness of the Indian Cement

Industry, the Department of Industrial Policy & Promotion commissioned a study on the

global competitiveness of the Indian Industry through an organization of international

repute, viz.

For India, the world's second largest producer of cement, the recent boom in

infrastructure and the housing market has only boosted its cement industry. Add to that an

increasing global demand and a flurry of activity in infrastructure projects – highways

roads, bridges, ports and houses – has sparked off a spate of mergers and acquisitions in

the sector. Furthermore, the country’s finance minister, P. Chidambaram, has stated that India

would double spending on infrastructure over the next five years to sustain its record

economic growth and modernize its infrastructure.

Cement companies are fast developing plants to provide for a rapidly expanding economy.

The cement industry is therefore poised to add 111 million tonne (mt) of annual capacity

by the end of 2009-10 (FY10), riding on the back of approximately 141 outstanding

cement projects. According to a report by the ICRA Industry Monitor, the installed

capacity is expected to increase to 186 mt per annum (mtpa) by FY08-end, and 219 mtpa

by end of FY09, and further up to 241 mtpa by FY10-end. As a result, India’s cement

industry will record an annual growth at 10 per cent in the coming years with higher

domestic demand resulting in increased capacity utilisation.

DOMESTIC PLAYERS

While the Cement Corporation of India, a Central public sector

undertaking, comprises 10 units; the various State governments own 10 large cement

plants. Among the leading domestic players in terms of cement manufacturing are:

Ambuja Cement, Aditya Birla Group (which owns UltraTech Cement), ACC Ltd.,

Binani Cement, India Cements and J K Cement. They are not only the foremost

producers of cement but also enjoy a high level of equity in the market.

GLOBAL PLAYERS

Rapid urbanisation and the booming infrastructure have lead to an increase in construction

and development across India, attracting even the global players. The recent years have

witnessed a surge of foreign direct investment in the cement sector. International players

like France's Lafarge, Holcim from Switzerland, Italy's Italcementi and Germany's

Heidelberg Cements hold more than a quarter pie of the total capacity.

- Holcim, one of the world's leading suppliers of cement, has 24 plants in the

country and enjoys a market share of about 23-25 per cent. It will further invest about

US$ 2.49 billion in the next five years to set up plants and raise capacity by 25 mt in

the country. Holcim has a global sale worth about US$ 20 billion, where India

contributes US$ 2–2.5 billion.

- Italcementi Group, the fifth largest producer of cement in the world acquired full

stake in the K.K. Birla promoted Zuari Industries' cement, to strengthen its

presence in India lining up US$ 300 million investment to increase the capacity of

Zuari Industries from 1.7 mtpa to about 6-7 mtpa. Moreover, it plans to invest US$

174 million over the next two years in various greenfield and acquisition projects.

- The French cement major, Lafarge, acquired the cement plants of Raymond and

Tisco with an installed capacity of 6 mtpa. It plans to double its capacity to 12 mt over

the next five years by adopting the greenfield expansion route.

-Heidelberg Cement has entered into an equal joint-venture agreement with S P

Lohia Group controlled Indo-Rama Cement. It aims at a 50 per cent controlling stake

in Indo-Rama's grinding plant of 0.75 mtpa at Raigad in Maharashtra. Heidelberg

is also taking over Mysore Cement of S K Birla group at a consideration of

US$ 93 million.

CHAPTER 3

COMPANY PROFILE

COMPANY PROFILE

The Travancore Cements Ltd is the only manufacture in the world producing white

cement from natural lime shells. The company was incorporated in 9th October 1946. The

master brain behind the establishment of the plant was that of late Sir.C.P Ramaswamy

Iyer, the then dewan of Travancore,who had realized the vital role of cement in the

industrial development of Kerala. The company was promoted by M/s Essel Limited,

Bombay and the Technology tie up was made with M/s F.L.Smidth & Co., Denmark.

The Travancore Cements Ltd is the only manufacturer, perhaps in the whole

World, producing white cement from a raw material other than conventional lime stone. The

raw material for cement is lime shell, which is dredged out from Vembanad Lake; one of

the back waters of Kerala. Lime shell is one of the purest sources of calcium carbonate

available for the cement manufacturer. As it contains magnesium oxide in traces only the

white cement out of lime shell is highly durable and superior in quality, quick setting and

stronger than white cement made from limestone.

In 1988 the company has set up its cement plant at Kakkanadu, near Cochin with

an installed capacity of 120 tones per annum on a single shift. As the production was far

below figure due to insufficient raw material supply, the plant was forced to close

down. The employees of this plant were absorbed by the parent company itself.

LOCATIONTravancore cements Ltd is situated on the banks of Kodoor River and on the side

of state highway M.C Road 4km away from the Kottayam town in kerala, the southern

most state in India. The location of the plant is in such a way that is accessible by both land

and water. The beautiful locality in which the company is situated extends over an area of

60 acres. The location facilitates the need of transportation of raw material and finished

goods.

PROMOTERS

The company was originally started under private management of M/s Essel Pvt. Ltd.

In 1975 government of Kerala took over the management of the company. The director of

the managing agency of the company at the time of its commencement was Mr. T.S.

Narayanaswamy. The factory was installed under the supervision of Mr. S. Rudlinger.

Now the government of Kerala is holding 51.33% of the equity share capital. The pyramid

group of the company is holding another 25% of the shares and the remaining shares are

held by General Public.

B R A N C H E S A N D O F F I C E S

The company has its registered office and factory at Nattakam, Kottayam, and

Kerala. It has a regional office at Trivandrum apart from this it also has depots at

Bangalore, Coimbatore and Vijay Wada.

PRODUCTS

The products produced in TCL are:

White cement

Super Shelcem ( Cement Paint )

Wall Putty

WHITE CEMENT

Vembanad White Portland cement is manufactured from the nature’s gift of rare raw

materials which are Crystal Gypsum are the raw materials. Technology used F.L. Smith &

Company, Denmark, conforms I S 8042 E 1976 specification.