Christy James OS Report

AN ORGANIZATION STUDY ON
THE TRAVANCORE CEMENTS LTD.
NATTAKOM, KOTTAYAM
By
Mr. CHRISTY JAMES

REGN.NO.101484
Submitted to the
MAHATMA GANDHI UNIVERSITY
In partial fulfilment of the requirements for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
Under the guidance of
Dr. GEORGE K. MATHEW

ASSOCIATE PROFESSOR
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT

ALUVA, COCHIN, KERALA-683106
CERTIFICATE
This is to certify that the report entitled “An Organization Study on,
The Travancore Cements Ltd. Nattakom, Kottayam” is a bonafide record
submitted by Mr. Christy James, Reg. No. 101484, in partial fulfilment of
the requirements for the award of the degree of master of Business
Administration during the academic years 2017-2018.
Date: Dr. G. SASHI KUMAR

PRINCIPAL
CERTIFICATE
This is to certify that the report entitled “An Organization Study on,
The Travancore Cements Ltd. Nattakom, Kottayam” has been
successfully completed by Mr. Christy James, Reg. No. 101484, in partial
fulfilment of the requirements for the award of the degree of Master of
Business Administration during the academic years 2017-2018.
Date: Dr. GEORGE K. MATHEW

INTERNAL FACULTY GUIDE
DECLARATION
I, Mr. Christy James, hereby declare that the report entitled “An
Organizational Study on The Travancore Cements Ltd. Nattakom,
Kottayam” is my original work. I further declare that this report on the
study is based on the information collected by me and has not previously
been submitted to any other university or academic body.
Date: Christy James

Reg. No. 101484
ACKNOWLEDGEMENT
First of all I wish to express my deep gratitude and thanks to God who helped me in
completing the organization study successfully.
I shall remain grateful to. Mr.V.B Ramachandran Nair, Managing Director of

Travancore Cements Limited Ltd, who granted me the permission to do my
organization study.
I also express my profound gratitude to project guide Mr. Saji A. J. (Company

Secretary) for his valuable guidance, timely advice and encouragement given during
the course of the study.
I wish to express my profound gratitude to our Principal, Dr. G. Sashi Kumar for his
overwhelming support in my study.
I express my sincere thanks to my guide and supervising faculty Dr. George K.

Mathew for his constant guidance and support for the successful completion of the
organization study.
I also thank my beloved family members who encouraged me at every stage of my

work. Finally, yet importantly, I would thank all my friends who helped me in various
ways during the study.
CHRISTY JAMES
vi
EXCECUTIVE SUMMARY
The Organisation Study entitled “An Organizational study on The

Travancore Cements Ltd. Nattakom, Kottayam” was chosen for its unique
existence and performance as a Public Sector Undertaking of Kerala State. The study was
conducted during the period of one month from 03-04-2018 to 02-05-2018.
The main objective of the study was to understand the actual functioning of the
organisation and there by strengthen the knowledge about the view of a business firm.
The company has got good goodwill and has 17 departments, which produce quality
white cement.
The main objectives of the study was to observe and understand the actual functioning
and management of the organization, to study its mission, vision and corporate objectives,
and to understand the organizational structure as well as the practical aspects of the
management. This study also helped to understand the functioning of each and every
department as well as the employee-employer relationship. A SWOT analysis of the
organization was carried out and to suggest some means of improving the performance of
various departments of the organization has been suggested.
The company has got the ability to sustain even at loss through the Government
support and it has got competitive advantage over any domestic players in this area with
the brand name ‘Vembanad’. The company holds the wet process technology in
producing white cement. The dedicated company management never loses their hope for
bringing up the company into profit.
The study dealt with organizational analysis of the company. SWOT analysis was
conducted to find out the key strengths of the company. From this analysis human
resource was found to be the major strength of the company. And the study conclude
with suggestions which the management can consider to improve their strategies.
vii
TABLE OF CONTENTS
Chapter No Title Page no.
Acknowledgement vi
Executive Summary vii
List of Tables and Figures ix
1 Introduction 1
1.1 An Introduction to the Study 1
1.2 Scope of the study 1
1.3 Objectives of the study 2
1.4 Methodology 2
1.5 Limitations of the Study 2
2 Analysis of Business Environment 3
2.1 Analysis of remote external environment 4
2.2 Industry Profile 6
2.3 Industry Analysis 12
3 Organizational Analysis 16
3.1 Overview of the organization 17
3.2 Organizational structure and functional
Analysis 25
4 Observations and Conclusion 66
BIBLIOGRAPHY 68
viii
LIST OF TABLES AND FIGURES
Page
Tables Titles
No.
Table 1 Origin of Cement Industry 6
Table 2 Components of Cement 7
Table 3 Current market scenario of Ultratech Cement 12
Table 4 Current market scenario of Shree Cement 12
Table 5 Current market scenario of Ambuja Cement 13
Table 6 Current market scenario of ACC Cement 13
Table 7 Milestones of Travancore Cements limited 18
Table 8 Board of Directors 18
Table 9 Technical specification of white cement 22
Table 10 Quantity specification of white cement 24
Table 11 Welfare facilities provided by the company 33
Table 12 Leave Pattern 35
Table 13 List of apprentices 36
Table 14 Allowances to employees 37
Table 15 Employee strength of TCL 38
Table 16 Current Ratio 44
Table 17 Quick Ratio or Acid Test Ratio 45
Table 18 Absolute Liquid Ratio 46
ix
T Tables Title Page No.
a
Table 19 Working Capital Turnover Ratio 46
Table 20 Net Profit Ratio 47
Table 21 P&L Comparison Chart for the year 2012-2016 48
Table 22 Comparison of sales for the year 2012-2016 48
Table 23 Number of dealers and stockists in Kerala 49
Table 24 Number of dealers and Stockists in Tamilnadu 49
Table 25 Pricing of the products 51
Figures Title Page

No.
Figure 1 Vembanad white cement 21
Figure 2 Vembanad wall Putty 22
Figure 3 Super Shelcem cement paint 24
Figure 4 Business and Departmental Structure 25
Figure 5 Structure of Production Department 27
Figure 6 Production process of Cement 31
Figure 7 Structure of Personnel Department 33
Figure 8 Structure of Finance Department 40
Figure 9 Quick Ratios 45
Figure 10 Absolute Liquid Ratios 46
x
Figures Title Page No.
Figure 11 Working Capital Tuurnover Ratios 47
Figure 12 Net Profit Ratios 48
Figure 13 Structure of Marketing department 50
Figure 14 Structure of Dredging department 53
Figure 15 Structure of Transportation department 54
Figure 16 Structure of Laboratory department 55
Figure 17 Structure of Medical department 55
Figure 18 Structure of General Stores department 56
Figure 19 Structure of Electrical department 57
Figure 20 Structure of Time office department 60
Figure 21 Structure of material handling department 61
Figure 22 Structure of workshop department 63
xi
CHAPTER ONE
INTRODUCTION
Chapter 1: INTRODUCTION
1.1 Introduction to the Study
An organisation is a planned coordination of a number of people and their activities

for the achievement of some specific goals through diversion of labour, and hierarchy
of authority. An organisation study also involves the study of the structure and
functioning of its departments. Organising or Organization is one of the important
functions of management. Almost all the organisations are different but they have
certain common features. All are collection of people, linked together by formal and
informal relationships, they have hierarchical orders that are engaged in co-operative
activities and they all have identical boundaries.
The study of the people in organization is important for future managers. Structure of
an organisation is very important for its functioning and growth. It provides the basic
framework for its progress and expansion for future managers it is important to study
the organisational structure and functioning of successful organisations so that they as
future managers may guide organisations towards success and profitable functioning.
The organisation selected for the study was “The Travancore Cements Limited”
(TCL), Nattakom at Kottayam district. The company was started in 1946 which gives
it a body of knowledge and experience.
This report consists of a detailed study of the history of the industry, company,
product profile, organisational hierarchy, various departments and their functioning
etc. This study helps to familiarize the organisation, current scenario of Cement
industry both in country and state wise.
1.2 Scope of the Study

The study was intended to acquire the experience of overall functioning of the
organization. It provided an opportunity to see the practical constraints faced by the
managers while putting theory into practice. It also helped to understand the functioning
of various departments such as finance, marketing, operations etc. and how each
department is linked for the total functioning of the organisation.
2
1.3 Objectives of the Study
1. To understand the actual functioning and management of the organization, its
various departments and also about the employer-employee relationship.
2. To study the mission, vision and corporate objectives.
3. To understand the organizational structure and the practical aspects of the
management.
4. To study the strengths, weaknesses, opportunities and threats of the organization
and to suggest some measures for improving the performance of the organization.
1.4 Method of Study

The method used to conduct the organizational study is the qualitative form of
analysis. Qualitative methods of study helps to generate unique insights of the study.
The study covered topics like company profile, product profile, functioning of various
departments etc. But enough attention was given for careful and complete observation
of the organization and its function. The study involved collection of both primary
data and secondary data.
Data observed or collected directly from first-hand experience is called primary data.
Published data and the data collected in the past or other parties is called secondary
data. The primary data were collected by direct interviews with Departmental heads,
Managerial staffs & Workers. The data was collected also through direct observation.
The secondary data were collected mainly from Company supplements, Annual
reports, Web information & Departments guidelines. The attempt to collect accurate
data has been emphasised throughout the study.
1.5 Limitations of the Study

The time allocated for the study was inadequate for a detailed analysis of the
management and functioning of the organization. The method used for data collection
mainly provides qualitative data, and therefore may lack precision. As the
organization under study is a government firm, some data and documents were
considered confidential and hence not available. The annual report of the company is
available only up to the year 2011-2014 for the study.
3
CHAPTER TWO
ANALYSIS OF BUSINESS
ENVIRONMENT
Chapter 2: ANALYSIS OF BUSINESS ENVIRONMENT
2.1 Analysis of the Remote External Environment.

The external environment of an organization comprises of all the entities that exist
outside its boundary, but have significant influence on its growth and survival. An
organization has little or no control over the environment but needs to constantly
monitor and adapt to these external changes, a preventive or reactive response leads to
significantly different outcome. The external environment provides the paradigm, the
impetus and the most essential factor that shapes an organization. Any organization
that easily adapts to the environment essentially survives and the one that do not are
the ones that are eliminated in the competition. The informational resources on
external environmental forces are critical in an organization’s stability and
survivability.
2.1.1 PESTEL Analysis. The external environmental factors that affect the
company’s business could be analysed using PESTEL analysis. This analysis is one
important tool that executives can rely to organize factors within the general
environment and to identify how these factors influence these organization. PESTEL
is an anagram, which means it is a word that is created by using parts of other words.
Political environment. While looking at the political environment of the company,

there is no political disturbance. From day one of the company there is no strikes or
lock outs from the part of any political parties. The labour unions very much co-
operate with the management for its smooth running.
Economic environment. The company raises its fund through government deposits.
The salaries and other benefits are paid by the government. The company issue tender
notices for meeting its various infrastructure facilities. Thus the company has a strong
backup from the part of the government.
5
Social environment. The company possess a good reputation from the public. The
company has a greater scope for giving employment opportunities to the public. Thus
the public supports the company. Besides workers the company also invites trainees
to work with pay for a particular period.
Technological environment. From mining to production the entire process depends

on technology. The Government of Kerala plans to study and possibly acquire new
technologies from the cement Industry of Japan. The government is discussing
technology transfer in the field of energy conservation and environment protection to
help improve efficiency of the Indian cement industry. Cement industry has made
tremendous strides in technological up-gradation and assimilation of latest
technology.
Economic Environment. The company does not pollute the environment because the
manufacturing technology involves the wet process.
Legal environment. Legal system for business in India is very flexible. The legal
segment centres on how the courts influence business activity. Examples of important
legal factors include employment laws, health and safety regulations, discrimination
laws and labour law. The company has got its own unique technique in manufacturing
products. Thus in order to protect these rights the company can go for patent rights
and intellectual property rights.
6
2.2 Industry Profile
In the most general sense of the world, cement is a bonder, a substance that sets and
hardens independently, and can bind other materials together. The word ‘‘cement’’
traces to the Romans, who used the term ‘opus caementicium’ to describe masonry
resembling modern concrete that was made from crushed rock with burnt lime as
binder. The volcanic ash and pulverized brick additives that were added to the burnt
lime to obtain a hydraulic binder were later referred to as ‘cementum’, ‘cimentum,
‘cament’, and ‘cement’.
2.2.1 Origin of cement industry
Table 1:
Origin of Cement Industry
Years Happenings
16 Century Roman’s was the first to use pozzolan

cement in the making of Pantho
1760 John Smeaton was first to develop best
composition of hydraulic cement
1824 Joseph Aspdin was granted a patent for
“Portland cement”
Cement industry in the 20th century. Calcium aluminate cements were patented in
1908 in France by Jules Bied for better resistance to sulphates. In the US, the long
curing time of at least a month for Rosendale cement made it unpopular. In the early
1930s it was discovered that, while Portland cement had a faster setting time it was
not as durable, especially for highways, to the point that some states stopped building
highways and roads with cement. Bertrain H. Wait, an engineer whose company had
worked on the construction of the New York City's Catskill Aqueduct, was impressed
with the durability of Rosendale cement, and came up with a blend of both Rosendale
and synthetic cements which had the good attributes of both: it was highly durable
and had a much faster setting time
7
Modern cements. Modern hydraulic cements began to be developed from the start of
the Industrial Revolution (around 1800), driven by three main needs:
1. Hydraulic cement render (stucco) for finishing brick buildings in wet climates.
2. Hydraulic mortars for masonry construction of harbour works, etc., in contact with
sea water.
3. Development of strong concretes.
Modern cements are often Portland cement or Portland cement blends, but other
cements are used in industry.
Table 2:
Components of Cement
Siliceous Calcareous
Portlan
(ASTM C618 (ASTM C618 Slag Silica
Property d
Class F) Class C) Cement Fume
Cement
Fly Ash Fly Ash
SiO2 content (%) 21.9 52 35 35 85–97
Al2O3 content (%) 6.9 23 18 12 —
Fe2O3 content (%) 3 11 6 1 —
CaO content (%) 63 5 21 40 <1
MgO content (%) 2.5 — — — —
SO3 content (%) 1.7 — — — —
Specific surface 15,000–

370 420 420 400
(m2/kg) 30,000
Specific gravity 3.15 2.38 2.65 2.94 2.22
General use Primary Cement Cement Cement Property

in concrete binder replacement replacement replacement enhancer
8
2.2.2 Global scenario. In 2010, the world production of hydraulic cement was 3,300
million tonnes. It is the Chinese cement industry which has shown a rapid growth
over the last five decades. The production of cement in the country was less than 3
million tonnes in 1952, but in 1999 the total production of cements reached 573
Million tonnes. Thus China, accounting for about one third of the global cement
production ranks first in the world today in terms of cement output.
The total installed capacity of the Chinese cement industry is estimated at 700 million
tonnes from over 7000 cement plants, which means that the average capacity of each
plant is about 1,00,000 tonnes per annum. In China, the cement industry has a
multiple ownership structure and a major part of the industry belongs to the Ministry
of Agriculture under its Administration of Town and Village Industrial Enterprises
(TVIE), the cement plants belongings to this sector are small and based on Vertical
Shaft Kilns (VSK), which traditionally have consumed high levels of raw materials,
fuel and power and therefore causes serious environmental pollution.
During the last five years there have been planned efforts to look at the energy and
environmental issues of these plants with the help of international organisations.
China holds the major share in the cement industry. The Chinese cement industry has
seen a rapid growth over the last five decades. The production of cements was less
than 3 million tonnes in 1952, but in 1999 the total production of cement reached 573
million tonnes. Thus china, accounting for about one third of the global cement
production rank first in the world today in terms of cement output.
The total installed capacity of the Chinese cement industry is estimated at 700 million
tonnes from over 7000 cement plants, which means that the average capacity of each
cement plant is about 1,00,000 tonnes per annum. In China the cement industry has a
multiple ownership structure and a major part of the industry belongs to the Ministry
of Agriculture under its Administration of town and village Industrial Enterprises
(TIVE). The cement plants belonging to this sector are small and based on vertical
Shaft Kilns (VSK), which traditionally have consumed high levels of raw materials,
fuel and power and therefore cause serious environmental pollution.
9
During the last five years, there have been planned efforts to look at the energy and
environmental issues of these plants with the help of international organisation like
UNIDO, IVAM Environmental Research and University of Amsterdam. These
international bodies have undertaken the study for cleaner production technology and
energy conversation measures in these cement plants.
As previously mentioned, the Chinese cement industry still uses the VSK process as
its principal technology. However in the last two decades, there has been the
introduction of modern pre-heater and pro-claimer kiln systems at medium and large
sized plants. The sum total effect has been the existence of a mix of technologies and
there are now over 13,000 VSK plants in China. Currently the modern large cement
plants with pro-claimer technology cover less than 10% of the total cement output of
the country. About 12% of the outputs comes from a plethora of small and medium
size rotary kiln plants. The total output from the VSK plants constitutes about 78%.
According to a regulation issued in 1997, the VSKs with capacity 44,000 tonnes per
annum or less were to be discontinued by the end of 2000, barring only few regions
where the deadline is 2005. By the end of 1999, it had been officially reported that the
VSK plants with an aggregate production capacity of about 20 million tonnes per
annum had been closed down.
In 2011 the world production of hydraulic cements was 3,300 million tonnes. The top
three producers were China with 1800, India with 220 and USA with 63.5 million
tonnes for a combined total of over half the world total by the world’s three most
populated states. For the world capacity to produce cement in 2012 the situation was
similar with the top three states (China, India & USA) accounting for just under half
the world.
2.2.4 Indian scenario. Manufacture of cement was first started in Madras in 1904.In
the year 1951, there were 21 factories with an annual production capacity of 3.28
million tonnes. India is the second largest producer of cement in the world. Since
1956, the production, distribution and price of cement were regulated. The process
was maintained uniformly all over the country through a freight equalization formula.
In the earlier year the growth was rather slow mainly decontrolled in 1982 and fully
10
1989 at the time of partial decontrol, the industry had an aggregate capacity of 30
million tonnes annually
India, being the second largest cement producer in the world after China with a total
capacity of 151.2 Million Tonnes (MT) has got a huge cement industry. With the
Government of India giving boosts to various infrastructure projects, housing
facilities and road networks, the cement industry in India is growing at an inevitable
pare. The cement industry in India is dominated by around 20 companies, which
account for almost 70% of the total cement production in India.
A scenario analysis concludes the report in highlighting the energy efficiency and
productivity improvements that could be achieved by employing more efficient
technologies. The origin of Indian cement industry can be traced back to 1914 when
the first unit was setup at Porbandar with a 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 financial performance of the cement industry has also recorded impressive
growth. The growth of the Indian cement companies has also attracted global
companies. Top global companies such as Lafarge of France, Holcim of Switzerland,
Italy cement of Italy and Heidelberg cements of Germany have entered in cement
production in India. Their investment in the Indian cement sector is also giving a
boost to the Indian economy. There are about 11 types of cement produced in India.
They are Clinker Cement, Ordinary Portland Cement, Rapid Hardening Portland
Cement, Oil Wet Cement, White Cement, Sulphate Resisting Portland Cement etc.
Cement is a key infrastructure industry. The performance of the industry and prices of
cement are monitored regularly. The constraints faced by the industry are reviewed in
the Infrastructure Coordination Committee meetings held in the Cabinet Secretariat
under the chairmanship of Secretary (Coordination). Its performance is also reviewed
by the cabinet committee in Infrastructure.
Size of the industry. The global cement industry is worth about 180 billion dollars. Its
total production is about 2783 million tonnes.
11
Structure. Two different markets are there for cement globally. It includes bulk sale
for large infrastructure projects to the government and companies and bagged
products sold to individuals for personal use in home for local structures. Bagged
cement accounts for about 65% of the world’s production. Word wide market has
grown an average 44% per year for the last 70 years. In China and Latin America, the
growth rate is about 5-15% year. But in US and Europe market growth is zero.
India is the second largest producer of cement in the world.
Regional scenario. The major cement manufacturers in Kerala are Neptune Ready
Mix concrete and Travancore Cements Limited. Neptune Ready Mix has a production
capacity of Travancore cements ltd is 50,800 tonnes per annum. The cement industry
presents one of the most energy- intensive sector within the Indian economy and is
therefore of particular interest in the context of both local and global environmental
discussions. Increases in productivity through the adoption of more efficient and
cleaner technologies in the manufacturing sector will be effective in merging
economic, environmental and social development objectives. A historical examination
of productivity growth in India’s industries embedded into a broader analysis of
structural composition and policy changes will help identify potential future
development strategies that lead towards a more sustainable development path. Issues
of productivity growth and patterns of substitution in the cement sector as well assign
other energy- intensive industries in India have been discussed from various
perspectives. Historical estimates vary from indicating an improvement to a decline in
the sector’s productivity. The variation depends mainly on the time period considered,
the source of data, the type of indices and econometric specifications used for
reporting productivity growth. Regarding patterns of substitution most analyses focus
on inter fuel substitution possibilities in the context of rising energy demand. Not
much research has been conducted on pattern of substitution among the primary and
secondary input factors: capital, labour, energy and materials. However, analysing the
use and substitution possibilities of these factors as well as identifying the main
drivers of productivity growth among these and other factors is of special importance
for understanding technological and overall development of an industry. A scenario
12
analysis concludes the report in highlighting the energy efficiency and productivity
improvements that could be achieved by employing more efficient technologies. The
origin of Indian cement industry can be tracked back to 1914 when the first unit was
setup at Porbandar with a capacity of 1000 tonnes. Today 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.
2.3 Industry Analysis
Industry analysis is a technique designed to provide a business with an idea of the

complexity of a particular industry. Industry analysis involves reviewing the
economic, political and market factors that influence the way industry develops.
Major facrors can include the power wielded by suppliers and buyers, the condition of
competitors,a and the likelihood of of new market entrants.
2.4.1 Industry key players. There are many key palyers in the cement industry in
India they are.
UltraTech Cement. The biggest player in the Indian cement industry is UltraTech
Cement, a product of the Indian multinational conglomerate – the Aditya Birla Group
that was founded in 1857. The group started its cement business in 1983 and named
the brand UltraTech Cement. This company is based in India's financial capital
Mumbai. As much as 6.4 crore tonnes of grey cement is churned out by UltraTech
Cement every year.
Table 3
Current market scenario of Ultratech Cement
Current market scenario of Ultratech Cement

Market Capitalisation. Rs. 85,363.84 Cr
Net Sales Rs. 20,279.80 Cr
Net Profit Rs. 2,144.47 Cr.
Total Assets Rs. 21,955.03 Cr.
13
Shree cement. Shree Cement is one of India's leading cement manufacturing
companies. It was established in 1979 in Beawar town of the Ajmer district of the
state of Rajasthan. The founder member of Shree Cement, Benu Gopal Bangur is the
executive chairman of the company. The annual amount of cement produced by Shree
cement weighs up to 1.75 crore tonnes. Shree Cement's market capitalisation
amounted to Rs. 38,460.30 crore on 10 July 2016.
Table 4
Current market scenario of Shree Cement
Current market scenario of Shree Cement

Net Profit Rs. 787.4 Cr.
Ambuja cements. Ambuja Cements Limited (formerly Gujarat Ambuja Cement

Limited) is an Indian cement manufacturing giant operating in the Indian cement
industry for over 30 years now. Founded in 1983, Ambuja cement is headquartered in
Mumbai, Maharashtra. In 2006, the management controls of the Ambuja Cements
were bought by Global cement conglomerate Holcim from Switzerland. The annual
manufacturing capacity of Ambuja Cements is around 2.87 crore tonnes. Ambuja
Cements’ market capitalisation amounted to Rs. 37,105.87 on 10 July 2016.
Table 5
Current market scenario of Ambuja Cement
Current market scenario of Ambuja Cement

14
ACC cements. (Associate Cement Companies Limited) is one of the top cement
manufacturers of India. It was founded in 1936 and is headquartered in Mumbai. The
Associate Cement Companies Limited is a group of companies like FE Dinshaw,
Killick Nixon, Khataus and Tata. There are 17 modern cement manufacturing
facilities across the country that belong to ACC. The company employs over 9,000
people and has many dealers for the distribution of its product. ACC's market
capitalisation was Rs. 27,639.93 crore on 10 July 2016.
Table 6
Current market scenario of ACC Cement
Current market scenario of ACC Cement

2.3.2 Competitor’s analysis. Cement industry is a highly competitive field since

cement products have manifold uses. The company is facing tough competition from
domestic and international manufactures.
The major Competitors are J.K White Cement, Birla White Cement, Super Snowcem,
and ACC White Cement
JK white cement. JK Cement (India) is the world's third-largest producer of white

cement in 2016 with two white cement plants. Its Gotan plant in Rajasthan State,
India has 400,000t/yr. of white cement production capacity. JK Cement also operates
a newly-commissioned dual-stream 600,000t/yr. white cement capacity plant in the
UAE (see below). It exported white cement to 24 countries in 2013, including
Australia, New Zealand, Angola and Qatar.
Birla white cement. UltraTech is India's largest white cement manufacturer.

UltraTech manufactures white cement under the brand name — Birla White.
15
Birla White is a critical component in wall finishes such as Grit Wash, Stonecrete and
Tyrolean. It is also the main ingredient in the application of mosaic tiles and terrazzo
floorings. The range of unique stand-alone products that Birla White has introduced
includes Wall care putty, Levelplast, Textura, GRC.
Super snowcem. Snowcem began manufacturing exterior paints and coatings for the
Indian market in 1959, having been established in Mumbai in that year by George
Lillington. Snowcem launched the Sandtex brand in 1970, which had strong sales in
the European market. In 2002–3 the company was the largest manufacturer of cement
paint in India, enjoying between 25–30 per cent of the national market share in this
type of powder paint to which water is added, and had attracted the acquisitive
attentions of Asian Paints and Berger Paints India. By 2008, however, the company
had retained its independence and launched new products to augment its traditional
reliance upon cement paint, including external acrylic emulsions and other liquid
paints.
ACC white cement. ACC Limited (Formerly the Associated Cement Companies
Limited) one of the largest producers of cement in India. Its registered office is called
Cement House. It is located on Maharishi Karve Road, Mumbai. The stock price of
company contributes in calculating BSE Sensex.
The management control of company was taken over by Swiss cement major Holcim
in 2004. On 1st September 2006 the name of The Associated Cement Companies
Limited was changed to ACC Limited. The company is only Cement Company to get
Super brand status in India. It has a market share of 20 percent.
2.3.3 Products. In 1999 three new products introduced: Uni-gloss, a multi-surface

paint system, Trump, a smooth exterior emulsion paint and Snowplast, an acrylic
finishing plaster for interiors. In 2008, having avoided acquisition earlier in the
decade, Snowcem launched SnowDecor, a range of texture finish products, as well as
the acrylic emulsions Snowcryl and allrounder.
16
CHAPTER THREE
ORGANIZATIONAL
ANALYSIS
Chapter 3: ORGANIZATIONAL ANALYSIS
3.1 Overview of the Organization

3.1.1 Background and history. The Travancore cement was the first cement factory
in Kerala incorporated in 1946 under the company act. The mastermind behind setting
up of the factory was late Sri. C.P. Ramaswamy Iyer, Divan of Travancore. He
realized the vital role of cement in industrial development of Kerala. 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 91.02% and about 8.98% share
is with the public.
The Company was promoted by M/s Essel Ltd. Mumbai and technology tie up was
made with M/s FL Smith & Co. Denmark. The company is the premier project
making company in Kerala. It is the only public sector which manufactures and
market while cement based on lime shell should was the first of this kind in India and
third position in the world, the other two being in the United States of America.
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 white cement went up and the Govt. of Kerala took over the
management of the company. The installed capacity for production of white cement is
30000 tonnes per annum.
For the last 72 years of its inception, it has diversified its activities to related areas.
Besides Super shelcom cement paint, the company has added to its product range,
shelter, Acrylic Emulsion parent for interior and exteriors and shelprime cement
primer. Sheltex Acrylic Emulsion paint and shelprime cement primer where later
withdrawn
The Travancore cements Ltd. is the only manufacturer, perhaps in the whole world,
producing white cement from raw materials other than conventional lime stone. The
main raw material is lime shell, which is dredged out of Vembanad Lake, one of the
most important back water of Kerala.
18
Table 7:
Milestones of Travancore Cements limited
Years Milestones
1949 Started production of Vembanad Grey cement from Lime

shell
1959 Started production of Vembanad white cement from Lime
shell
1977 Diversified into cement paint super shelcom production
1982 Celebrated silver jubilee
1997 Celebrated Golden jubilee
2000 Launched shelprime Dry Cement primer
2001 Conferred ISO 9001
2002 Company started HRD centre
2008 TCL started the production of Vembanad Wall putty
Branches and offices. The company has its registered office and factory at Nattakom,
Kottayam, Kerala. It has a depot at Coimbatore and also appointed C&F Agents for
different areas
Table 8:
Board of Directors
Board of Directors Names
Chairman & Managing Director Mr. VB Ramachandran Nair

Director Mr. C J Joseph
Director Mr. K Radhakrishnan
Director Mr. S. Anil Kumar
Director Mr. G Unnikrishnan
19
Vision. “To be a leader in the Indian Cement industry and providing customer delight
and enhancing shareholders value”
Mission. “Having a unique role in the heavy industry sector of the country, TCL is
committed for catering the society towards the specific need expected by producing
quality product at a customer friendly price while keeping sustained growth of the
organization and total growth of the society”.
Quality policy. The Travancore Cements Ltd. are committed to continual

improvement of the system, enhancing customer satisfaction, by providing consistent
quality products through the implementation of Quality Management System at all
levels in the organization.
Quality standards. The responsibility to ensure proper functioning and maintaining of

the Quality Standards under the Quality Management System rests with the
Management Representative appointed for this purpose. The authorities and
responsibilities of the personnel who are coming under the system in various level,
designations and the duties they are expected to perform are clearly defined as per the
ISO Quality Manual & Procedure Manual. The departments brought under the
purview of Procedure Manual are production of White Cement, Cement Paint & Wall
Putty, Mechanical & Electrical Maintenance, Materials Management, Quality
Control, House Keeping, Training wing of Personnel Section, Marketing, Sales
Section, out sourced production of Cement Paint & Wall Putty. The Internal Audit
wing constituted under this Quality Management System with Certified Internal
Auditors within the organization is entrusted with the task of auditing continuously as
scheduled and they conduct periodical audit of the system to maintain the system
without non-conformities. This ensures to keep the system scrupulously before the
External Audit conducted by the ISO periodically. The Company’s decision to
implement ISO Quality Management System has helped to streamline all the
procedures very systematically. TCl’s non-compromise in quality re-assurers the
credibility of its products in the market amidst stiff competition from other market
giants.
20
Objectives. The main objective of the company is to engage in the production of
Vembanad White Portland Cement. It is the first and forecast product of the company
which is best in quality. Now the company is also engaged in the production of
cement paint known as Super Shelcem which is available in wide range of 40 shades.
ISO certification. The company has been granted ISO 9001 certification on 8th
February 2001, by the Bureau of Indian Standards (BIS). On behalf of the company,
the certificate was received from the Director of BIS by the late Minister for
Industries and social Welfare Smt. Suseela Gopalan in the presence of Sri. K.M.
Abraham, Chairman Sri. George Sebastian. M.P., Staff and Trade Union
representatives of the company.
Future expansion. The company plan some diversification schemes which will be
implemented in the near future, which includes the proposal to assist setting up of
Enamel paint unit and textured coating under co-operative societies. There are
proposals to start a packing unit, the venturing of a project for the manufacture of
calcium nitrate and di calcium phosphate, shifting of the present technology to dry
process technology, reinitialize the production of grey cement. Other proposals
include export of White Portland cement to Srilanka, Gulf countries, South Africa and
Mauritius.
Products and markets. Product is anything that can be offered to a market that might
satisfy a want or need whereas a market is defined as the sum total of all the buyers
and sellers in the area or region under consideration. The area may be the earth, or
countries, regions, states, or cities. The different products of The Travancore Cements
Ltd. are in the table below:
21
3.1.2 Vembanad white cement
VV
Figure 1:
Vembanad white cement
Vembanad white portland cement. Vembanad White Cement is manufactured from

the nature's gift of rare raw materials which are unique in quality and consistent in
purity. Lime shell the purest form of Calcium Carbonate in nature, White clay, White
Silica sand and Crystal Gypsum are the raw materials. Technology used F. L. Smidth
& Company, Denmark, conforms IS 8042 E 1976 specification.
Outstanding qualities of Vembanad brand white cement.
1. Lowest magnesia content and hence Vembanad is the most durable White Cement.
2. Brilliant whiteness.
High strength: At the end of the first day, the strength exceeds what is specified to
acquire at the end of the third day as per BIS specifications. They are of super
soundness. It has super fineness. It has excellent properties. It is ideal for manufacture
of Cement Paints, Mosaic tile. Cement Primer, Cement based putty.
22
3.1.3 Vembanad wall putty
Area of Application
1. All type of plasters and concrete wall

2.Ceilings
3. Aerated light- weight blocks
Figure 2:
Vembanad wall Putty
Benefits
1. Ready -to-use
2. Easy applicability & self-curing
3. Excellent efflorescence resistance.
4. Smoothen the wall with excellent finish.
5. Decrease paint consumption.
6. Enhance bindings of the paint with the wall.
7. Excellent resistance to water.
8. Good adhesion and tensile strength.
Table 9:
Technical Specification of white cement
Appearance White Powder
Compressive Strength @ 28 Days 38 Kg/sq.cm
Setting Time (minutes)
Initial 310
Final 405
pot life of thinned material 2 to 3 hrs. (Temp. 30 c, h 65 %)
23
Appearance White Powder
Dry for Recoat 6 to 8 hrs (temp. 30 c, h 65 %)
Shelf life 1 year
Tensile Adhesion test- 28 days 3.73 Kg/cm2
Water retentivity test (%) 98.94%
Surface preparation. Remove all loosely adhering material from the wall surface
with the help of emery stone, putty blade or wire brush and clean water. The substrate
should be clean, free from dust, grease and loose materials. Dry and absorbent
surfaces should be moistened with sufficient quantity of clean water. After plastering
allow to dry the surface at least 8-12 weeks for new walls.
Mixing of wall putty. Mix VEMBANAD wall putty with 30-35 % clean water slowly
to make a paste. Continue the mixing for 10-15 minutes till a uniform paste is formed.
It should be used within 2 to 3 hours of preparation. Mixing may be done manually or
by using a suitable electric mixer.
Application. Ensure that surface is totally clean. The surface should be moderately
rough and in just wet condition. Apply first coat of VEMBANAD wall putty using a
blade on the wall with a bottom to up configuration. Apply 2nd coat of VEMBANAD
wall putty preferably after 10 hours in summers and 12 hrs in winters. Make sure that
the wall is perfectly dried before applying second coat. Second coat shall be applied
horizontally to even out application marks of 1st coat, if any. The total thickness of
the coats should be limited to maximum 1.5 mm. Always prepare a required quantity
of putty and use it within 2-3 hrs of mixing with water. Allow complete drying for 3
days and then use a fine emery paper (not less than 500 numbers) to remove
application marks, if any.
Precautions. Use the thinned mixture within 3 hrs. The total thickness of the 2 coats
should be limited to maximum 1.5 mm. Wall putty should be done over fully cured
surface. Avoid inhalation during mixing and handling.
Coverage. 12-18 sq. (This varies as per porosity and texture of the surface.)
Packing. 40 Kg, 20 Kg, 5 Kg & 1 Kg
Shelf life and storage. Shelf life is one year from the date of manufacturing. The
material should be stored between 5° C to 40° C and avoid exposure to sunlight.
24
Health & safety. Vembanad Wall putty is not hazardous. It should not be swallowed
or allowed to come into contact with the skin and eyes. Protective gloves, Nose mask
and goggles should be worn. Contact with skin for long tenure should be avoided. In
case of contact with the eyes, it should be rinsed immediately with plenty of water
and medical advice sought immediately.
Fire: Vembanad Wall putty is non-flammable.
3.1.4 Super shelcem cement paint. Super Shelcem is a technologically unique

formulation with the most durable "Vembanad" White Cement. It contains a high
percentage of light fast pigments which help colour retention.Is unaffected by normal
climatic conditions and protects the wall against fungi growth. Ideal for coating on
concrete, asbestos, cement sheets, fibre boards or any Cement surface. Depending on
the surface a coverage of 7 to 10 Sq. /kg for two coats is achievable.
Figure 3:
Super Shelcem cement paint
Table 10
Quantity Specification of white cement
Brand Name Super Shelcem
No. of shades 40
Packing 25Kg Paper Bags
5 Kg Paper bags
3 Kg LDPE bags
1 Kg LDPE bags
25
3.2 Organization Structure and Functional Analysis
According to Sheldon Organization is the process of combining the work which
individuals and groups have to perform with the facilities necessary for its execution.
Koontz and Donnel explained Organization Structure as “The establishment of
authority relationships with provision for coordination between them, both vertically
and horizontally in the enterprise structure”
Figure 4:
Corporate Structure
P&A: Promotion and Advertising

P&O: Personal and Organisational
MM: Materials Management
M&P: Manufacturing and Production
QC: Quality Control
R&D: Research and Development
COM: Commerce
26
3.2.1 Functional departments of TCL.
In TCL the work activities that are similar and logically connected are grouped to
form departments. At present there are 18 departments in the organisation. They are
as follows.
 Production department
 Personnel department
 Finance department
 Marketing department
 Dredging department
 Transportation department
 Laboratory department
 Medical department
 General stores department
 Electrical department
 Purchase department
 Packing House
 Time office
 Material Handling department
 Workshop department
 Civil Engineering department
 Security department
 Sanitation department
27
3.2.2 Production Department
Figure 5:
Structure of Production Department
Raw materials.
Lime shell. Vembanad White Portland cement has the distinction of being the only
cement in the whole world produced from lime shell, an underwater deposit. Lime
shell is the purest source of calcium carbonate and best suited for white cement
manufacture. Moreover the wet process, though expensive is retained to ensure
perfect quality. Lime shell is obtained from TV Puram area (near vaikom).
White sand. The white sand is obtained from Coastal areas of Cherthala in Kerala
which accounts for purity up to 95%.
White clay. White clay or crude china is obtained from Southern parts of Kerala,
particularly from Trivandrum District. These white clay deposits are known for their
purity and high ceramic.
28
Gypsum. Helps to restore the setting action of cement and enhances the initial setting
time of cement.
Machinery & equipment

1. Dredger
2. Diluting pump
3. Gravel pump
4. Receiving tank
5. Rotary filter
6. Conveyors
7. Storage tanks
Processing of lime shell & clay

1. Water pump
2. Wash mill
3. Clay pump
4. Ball mill
5. Elevators
6. Lifting device
7. Slurry pump
8. Slurry silos
Processing of OD clinker
1. Rotary kiln
2. High pressure screw pump
3. Hammer crusher
4. Shaking and bucket elevators
5. Clinker silos
Processing of cements
1. Cement mills
2. Belt and screw conveyors
29
3. Cyclone Separators
4. Dust collectors
5. Air compressors
6. Cement silos, Packing Machines
Production stages. There are nine different processes

Dredger Operation. The dredger is placed anywhere in the Lake using a spud which is
then at lowered position while the other spud is at the raised position. The cutter is
about 10 am is length. It can cut the shell to a maximum of 40 ft. from the water level.
For the purpose of cutting, the cutter is placed downwards by using a winch when
spud 1 is centred which is loosened and the cutter moves in clockwise direction.
Similarly when the spud 2 is centred, the cutter moves in anticlockwise direction and
cut the shell. After primary washing, the shell transferred to the barge.
Unloading. The shell dredged is brought to the plant in barge through lake. Shell in
barge is diluted with about 60% of water by means of a diluting pump. A sucking
pump draws water along with the shell to the receiving tank near the rotary grill of the
screening plant. The shell is then passed through the rotary grill and waste materials
are washed out during its rotation. Cleaned shell is either passed to the belt conveyors
through hoppers or stored outside depending on the requirement of raw materials for
the process. There are two rubber conveyors (Conveyor: Short, Straight, Conveyor or
2 long cashed for conveying shell to the ball mill hopper)
Wash mill. Before actually used for process, clay is mixed with water. This work is
done in a wash mill. Clay is put into the mill and about 65% of water is added during
grinding. During the work in the wash mill, clay is made to slurry and is pumped to
storage tank known as silo. From silo it is taken when the process is required.
Shell sand grinding mill. Slurry is a mixture of shell, sand and clay with 40% of
water. For the preparation of slurry, three grinding mills are used.
1. Roughing mill known as ball mill
2. Finishing mill known as raw mill
30
3. Ball mill - cylindrical shell of welded metal plates
The shell along with the required amount of white sand and water is fed to the ball
mill by a rotating feed table. When the mill rotates the materials are crushed down to
small particles while it passes through the ball. The materials coming out of ball mill
is diverted to a hammer. Screen by means of a slurry elevator. Fine material coming
out of the hammer screen is fed to the raw mill. The coarse material is returned
material to the ball mill for further grinding.
Slurry making (raw mill). The raw mill is rotated by a motor at a constant speed while
passing through the mill, the fine materials discharged from ball mill and clay
pumped from clay silo are finally ground and comes out as a pasty material known as
slurry which then flows to the slurry pit.
Slurry section. Slurry discharged from the raw mill is stored in silos by means of
pumps. The chemical composition of slurry will be adjusted at this stage. There are 3
silos for staring the slurry. From these silos, slurry is pumped to the slurry basin. In
the basin slurry is constantly agitated with compressed air stirring mechanism. From
this basin, slurry is taken for burning in the Kiln.
Clinker making (rotary kiln). Kiln is a cylindrical steel shell lined with refractory
bricks mounted to base on roller supports so that it can be rotated. The Kiln is having
a length of 285 ft. with diameter of about 9 ft.
During the burning process, slurry passes through three stages.
Drying Zone
Calcinations Zone
Burning Zone
Clinker grinding. There are three cement mills A, B & C with clinker grinding
capacity of 60 tonnes for A. 50 tones for B & C. The B & C mills are identical.
During grinding, small quantity about 3-4% gypsum is added. Gypsum controls initial
setting time of cement.
31
Packing & despatching. The white cement stored in the silos is packed in bags in the
packing hour. For the free flow of cement from silo & hopper, compressed air is used.
When the bag is filled with 50 Kg, material discharged from the spout is
automatically transferred to the truck through a fixed point belt conveyor and a
movable belt conveyor. The filled bags fall down from the spout to the wire net
conveyor, will be transferred to a truck through a fixed point belt conveyor and a
movable belt conveyor.
Figure 6:
Production process of Cement
3.2.3 Personnel Department. The term personnel department refers to the function
of the organisation that is responsible for the management and motivation of people in
the workplace. Increasingly today the term Human Resource Management has come
to replace personnel - because personnel management is seen as an old fashioned way
of managing people, giving priority to organisational.
Employee potential. In Travancore cements ltd there are totally 480 employees. The
employees of the company are classified into three categories.
1. Officers
2. Staff
3. Workers
32
Officers. The officers are further classified into five
1. General Manager grade
2. Manager grade
3. Special grade
4. Class one grade
5. Class two grade
The classification is made according to the decision of the management. The different
grades are fixed on the basis of the experiences and merit of the employees.
Staff. People working in the office, security and senior employee in the plant comes
under the staff category. The grade of staff varies from 1 to 7. ‘1’ being the lowest
grade and ‘7’ being the highest grade.
Workers: The workers in the company are classified into A-E. The highest grade is A
& E the lowest level grade.
Timing: The office time of the company is from 9.00 Am to 5.00 Pm on all working
days from Monday to Friday. On Saturdays office time is till 1.00 Pm and the factory
is working on shift basis.
Recruitment and selection: Recruitment is done through direct and through

employment exchange. Selection is mainly based on written test and interview.
Selected person will have to undergo a period of training. The training period is
usually six months and for higher post it may extended to one year or more. Every
worker is liable to be transferred from one department to another department to
another and one job to another according to experience of work in the factory.
Trade unions. The recognised trade unions in the company are

1. The Kottayam Cement Employees Union – INTUC
2. The Travancore cements workers Union - INTUC
3. The Kerala Cement Labour Union - CITU
4. The Travancore Cement workers Union - AITUC
33
Figure 7:
Structure of Personnel Department
Table 11:
Welfare facilities provided by the company
Uniform 3 pairs once in a year
footwear Allowance Every Year
Umbrella Once in 2 years
Toilet Soap 2 Half bars in a month
Washing Soap 2 Half bars in a month
Transportation Every day
The benefits provided to the employees even the company is facing loss are:
Canteen. A fair price canteen is operating at the premises. The employees are given
Rs.25 per day of attendance as canteen allowance. Rs.750 is the maximum allowance
given per month.
Death benefit. Rs.5000 will be given to the dependent of the deceased employee to
meet the expenses in connection with funeral.
Transportation. Free transportation facility is provided to employees for coming and

returning after duty and for their children and for attending education institutions in
and around Kottayam.
Company’s product at concessional rate.
Super Shelcem paint are sold to employees at factory gate price.
34
Quarter’s facility. A limited number of employees are provided with quarter’s facility
with free electricity and water. Very nominal rents are charged.
Recreation facility. Recreation facility for indoor games like shuttle, badminton,
caroms etc. are provided. Reading room facility is also provided with newspaper and
periodicals; television is also provided with cable facility.
Training and development. There are both internal and external training for workers
and employees and it is conducted by the HRD centre under the Supervision of the
personal department. Job rotation is allowed only for officers.
Provisions regarding health of employees. Cleanliness is maintained in the

organization. Wastes and effluents are disposed properly. Proper ventilation and
temperature is maintained in the factory. Masks are provided for protection against
dust when they are working in the factory. Cold water facilities are provided. Proper
lighting is maintained
Welfare fund subscription. The company has a welfare fund scheme under which an
employee has to contribute Rs.20 and the company contributes at the rate of Rs. 10
for each member per month.
Training facilities for employee’s children. Employees’ children with ITI / diploma /
professional degree, are given training facility at free of cost. (as unpaid apprentice)
35
Salary & wages. Salary and wages, paid to the employees are determined on the basis
of an agreement between CMI and Trade Union. In TCL, pay revision is done in
every 4years. The salary is fixed for officers & staff according to KSR rules. And the
provision of Cement Manufacturers Association (CMA) determine workers’ wages.
Scale of pay. The Cement Manufacturers Association (CMA) determines the wages
and salaries of all cement factories in India. Since there is fixed pay structure for
every grade of employees, management can develop a coordinated pay system
without having to determine a separate pay rate for each job in the organisation. All
the jobs within a grade have the same range of pay regardless of points.
House rent allowance. The employees who are not provided with quarters are given
allowances at10% of their basic pay.
Employee provident fund. The company deducts 12 % of basic pay and dearness
allowance of the employees as monthly contribution. The company also contributes
an equal amount.
Family pension scheme. A portion of the provident fund is reserved for the family
pension scheme. This is kept for giving to the employees after their retirement on
monthly basis.
ESI. The employees having basic pay below Rs. 7500 are able to get the benefit of
ESI.
Gratuity. Gratuity is also given to the employees. And it is calculated as:

Gratuity = (BP + DA) * 15/26 * total years of service
36
Table 12:
Leave Pattern
CATEGORY CASUAL LEAVE SICK LEAVE PRIVILEGE
LEAVE
STAFF 14 12 30
WORKER 8 12 18
Note: Adapted from the employee register of the company
Provisions regarding the heath of the employees

1. Cleanliness is maintained.
2. Wastes and effluents are disposed properly
3. Proper ventilation and temperature is maintained
4. Masks are provided for protection against dust.
5. Cold water facilities are provided.
Personnel records. TCL keeps records about each and every employee, from the date
of joining till his separation from the company. It also includes details of salaries or
wages, transfers and other details related to the job.
List of apprentices.
Table 13:
List of apprentices
Types of apprenticeship
Graduate Apprentice (Engineering degree)
1.Electrical Engineering
I. 2. Mechanical Engineering
3. Chemical Engineering
Technical Apprentice
(EngineeringDiploma)
1.Automobile
2.Mechanical
II. 3.Chemical
4.Civil
5.Electrical
6.Commercial Practice
37
Trade Apprentice
1. Electrician
2. Fitter
3.Welder
III. 4. Turner
5. Mechanic Motor Vehicle
6. Carpenter
7. Forger & Head treater
8. Plumber
9. Mechanic Diesel
Table 14:
Allowances to employees
E D C B A I. II. III. IV. V. VI. VII.
BA 3060 3073 3099 3130 3170 3100 3120 3140 3165 3190 3215 3240
DA NIL 2.50 5 5 5 5 5 5 5 5 5 5
TA 90 90 93 93 96 90 93 93 96 96 98 98
HRA 125 125 125 135 135 125 125 135 135 145 145 150
BA- Benefits allowable
DA—Dearness Allowance
TA—Traveling Allowance
HRA—House rent Allowance
EA—Education Allowance (110 + 190 = 300/month)
CA—Conveyance Allowance (450 + 100 + 125 = 575/ month)
LTA—Leave Travel Allowance (205 + 135 = 400/ month)
PA—Periodical Allowance
38
Table 15:
Employee strength of TCL
Sl.no dept. Non-Managerial Managerial
Sanctioned Existing Total Total Total
staff workers (A) Existing Total (B)
1 Dredger 73 4 40 44 0 0 44
2 Water 24 3 13 16 0 0 16
Transport
3 Running 71 13 25 38 1 1 39
plant
4 Packing 47 0 11 11 0 0 11
House
5 Workshop 107 12 37 49 1 1 50
6 Office 54 35 1 36 3 3 39
7 Laboratory 17 5 8 13 2 2 15
8 General 7 2 2 4 1 0 4
stores
9 Time 7 4 0 4 0 0 4
Office
10 Electrical 27 5 15 20 2 2 22
11 Civil 0 0 0
12 General 19 3 0 3 0 0 3
Transport
13 Security 30 2 7 9 0 0 9
14 Camp & 16 3 5 8 0 0 8
Sanitary
15 Medical 2 1 0 1 0 0 1
Aid
16 Cement 47 2 1 3 0 0 3
Paint
17 Material 35 2 38 40 0 0 40
Handling
39
18 Marketing 15 11 0 11 0 1 12
19 Sales office 0 0 2 2 0 0 2
Kakkanad
Total 602 107 205 312 10 10 322
3.2.3 Finance Department. The finance department in an organization oversees

financial planning and management activities, including budgeting and forecasting,
reporting and compliance, and creation of value. Some of these responsibilities help
the organization meet compliance obligations. Others contribute to profit-building for
the company.
Duties of finance department. Duties of finance department are, Overall finance
control, Monetary decision making in consultation with the Managing Director,
Finalization of accounts, Budget preparation and Control over all matters relating to
finance in the organisation
The account finance departments ensure that the salaries to the employees are paid in
time. The department is also concerned with the preparation of budgetary control of
the concern. The departments ensure that all the entries are properly posted in the
books of accounts.
Sections
There are mainly three sections in the finance department of the company
Accounts section, Finance section and Cash section
Accounts section. The most important function in accounts section is the recording of
day to day accounts. Routine accounting functions like sales tax payment, receipts
and payments of cash, cheques etc. come under the preview of the account section.
The employee Payroll function is also undertaken by the accounts section.
40
Figure 8:
Structure of Finance Department
Finance section. Finance section is mainly concerned with the maintenance of

accounts. The various financial statements are recorded in the computer as well as in
the manual form
Cash section. The cash section is concerned with the disbursement of cash. There are
thirteen employees working in the finance department.
The accounts of the company are prepared in accordance with the accounting policies
generally accepted in India and in line with the relevant laws as well as the guidelines
prescribed by the department of company affairs and the Institute Of Chartered
Accountants Of India and in accordance with section 211(3c) of the companies Act
1956.
Scope of financial management

It can be summarised as follows:
Estimating financial requirements. The first task of a Finance Manager is to estimate
short term and long term financial requirements of his business. For this purpose, he
will prepare a financial plan for the present as well as for the future. The amount
required for purchasing fixed assets as well as needs of funds for working capital have
41
to be ascertained. The estimations should be based on sound financial principles so
that neither there are inadequate nor excess funds with the concern. The inadequacy
of funds will adversely affect the day to day working of the concern whereas excess
funds may tempt the management to indulge in extravagant spending for speculative
activities.
Deciding capital structure. Capital Structure refers to the kind and proportion of
different securities for raising of funds. After deciding about the quantum of funds
required, it should be decided which type of securities should be raised. It may be to
arise finance through long term debts Even here if gestation period is longer, the share
capital may be most suitable. Long term funds should be employed to finance
working capital. Entirely depending upon over drafts and cash credits for meeting
working capital needs may not be suitable. A decision about various sources of fund
should be linked to the cost of raising funds. If cost of raising funds is very high, then
such sources may not be useful for long. A decision about the kind of securities to be
employed and then proportion in which these should be used is an important decision
which influence the short term and long term financial planning of the enterprise.
Selecting source of finance. After preparing a capital structure, an appropriate source

of finance is selected. Various sources from which finance may be raised include
share capital, debentures, financial institutions, commercial banks, public deposits etc.
If finances are needed for shorter period, then banks, public deposits and financial
institutions may be appropriate, on the other hand, if long term finances are required,
then share capital and debentures may be useful. If the concern doesn’t want to tie
down assets as securities, then public deposits may be the suitable source.
Travancore Cements Ltd. debentures should be issued in preference to shares. The
need, purpose, object and cost involved, may be the factors influencing the selection
of a suitable source of financing.
Selecting a pattern of investment. When funds have been purchased, then decision
about investment pattern is to be taken. The selection of an investment pattern is
42
related to use of funds. The funds with have to be spent first on fixed assets and then
an appropriate portion will be retained for working capital. While selecting a plant &
machinery, even different categories of them may be available. The decision making
techniques such as capital budgeting, opportunity cost analysis etc. may be applied in
making decision about capital expenditures.Whilespending on various assets, the
principles of safety, profitability and liquidity should not be ignored. A balance
should be struck even in these principles. One may not like to invest on a project,
which may be risky, even though there may be more profits.
Proper cash management. Cash management is an important task of finance

manager. He has to assess various needs of the company at different times. He has to
make arrangements for cash. Cash may be required a) to purchase raw material b) to
make payment to creditors c) to meet wage bills d) to meet day to day expenses. The
usual source of cash may be a) cash sales b) collection of debts c) short term
arrangement with banks etc. The cash management should be such that neither there
is a shortage of it nor it is idle. Any shortage of cash will damage the creditworthiness
of the enterprise. The idle cash with the business will mean that it is not properly
used. Cash flow statement is regularly prepared so that one is able to find out various
sources and applications. All these information will help in efficient management of
cash.
Accounting policies. The accounts of TCL are prepared in accordance with the
accounting policies accepted in India and in line with the relevant laws as well as the
guidelines prescribed by the Department of Company Affairs and The Institute of
Chartered Accountants of India and in accordance with section 211 (3c) of the
Companies Act 1956.
System of accounting. The company adopts the accrual basis in the preparation of
accounts.
43
Fixed Asset. Fixed assets are capitalized at cost inclusive of expenses. Depreciation is
provided on all fixed assets except machinery for erection and free hold land, on
reducing balance method (written down value) in terms of sec. 350 of Companies Act,
1956 at the rates prescribed under schedule XIV of the said Act.
Inventories. Raw materials, stores and spares and work in progress are valued at cost.
Finished goods have been valued at cost or market price whichever is less and doesn’t
include excise duty, except in case of stock at depots.
Sales. Sales are inclusive of excise duty and sales tax. Sales include the value of white
cement transferred for the manufacturing of cement paint.
Retirement benefits. Gratuity, leave encashment, provident fund are the benefits
provided in the company.
Capital Structure. No long term loan was availed by the company and hence the debt
equity ratio is nil.
Reserves and surplus. The company is operating on the previous years’ surplus
amount.
Business performance. Business Performance of Travancore Cements Ltd is analysed

on the basis of the following ways. They are ratio analysis, Comparison of Profit &
Loss for the year 2011-2016, Comparison of Sales for the year 2011-2016 and
Graphical representations.
Ratio analysis. Accounting ratios are an important tool of financial statements

analysis. A ratio is a mathematical number calculated as a reference to relationship of
two or more numbers and can be expressed as a fraction, proportion, percentage and a
number of times. When the number is calculated by referring to two accounting
numbers derived from the financial statement, it is termed as accounting ratio. The
44
objectives of Ratio Analysis are to know the areas of the business which need more
attention, and the potential areas which can be improved with the effort in the desired
direction. To provide a deeper analysis of the profitability, liquidity, solvency and
efficiency levels in the business and also to provide information for making cross-
sectional analysis by comparing the performance with the best industry standards It
also aims at providing information derived from financial statements useful for
making projections and estimates for the future.
Current ratio analysis. Current ratio expresses the relation between current assets and
current liabilities. The working capital gives the current money flow in the business.
The current ratio is a liquidity and efficiency ratio that measures a firm's ability to pay
off its short-term liabilities with its current assets. The current ratio is an important
measure of liquidity because short-term liabilities are due within the next year
Current ratio= Current Assets/Current Liabilities
Ideal Ratio = 2: 1
Current assets are balance sheet accounts that represent the value of all assets that can
reasonably expect to be converted into cash within one year. Current assets include
cash and cash equivalents, accounts receivable, inventory, marketable securities,
prepaid expenses and other liquid assets that can be readily converted to cash. Current
liabilities are a company's debts or obligations that are due within one year, appearing
on the company's balance sheet and include short term debt, accounts payable,
accrued liabilities and other debts. Essentially, these are bills that are due to
creditors and suppliers within a short period of time.
Table 16
Current Ratio
Year Current Assets Current Liabilities Current Ratio

2012 903.5 1055.77 0.85
2013 2505.58 2404.99 1.04
2014 2940.76 3652.59 0.8
2015 2797.97 3147.7 0.88
2016 2256.47 2581.62 0.87
Note: Adapted from Balance Sheet of the year 2012-2016
45
Quick ratio or acid test ratio. The acid test ratio is a stringent and meticulous test of a
firm's ability to pay its short-term obligations 'as and when they are due. Quick assets
and current liabilities can be associated with the help of Quick Ratio.
The ideal Quick Ratio is 1: 1 and is considered to be appropriate. High Acid Test
Ratio is an accurate indication that the firm has relatively better financial position and
adequacy to meet its current obligation in time.
Quick Ratio = Liquid Asset (Current Assets – Stock & Prepaid Expenses) /
Current Liabilities
Table 17
Quick Ratio or Acid Test Ratio
Year Quick Assets Current Liabilities Quick Ratio
2012 453.34 1055.77 0.42
2013 1482.58 2404.99 0.61
2014 2434.09 3652.59 0.66
2015 1801.64 3147.7 0.57
2016 1288.11 2581.62 0.49
Fig 9:
Quick Ratios
Absolute liquid ratio. The relationship between the absolute liquid assets and current
liabilities is established by this ratio. Absolute Liquid Assets take into account cash in
hand, cash at bank, and marketable securities or temporary investments. The most
favourable and optimum value for this ratio should be 1: 2. It indicates the adequacy
of the 50% worth absolute liquid assets to pay the 100% worth current liabilities in
time. If the ratio is relatively lower than one, it represents the company's day-to-day
cash management in a poor light. If the ratio is considerably more than one enough
funds in the form of cash in order to meet its short-term obligations in time.
46
Absolute Liquid Ratio = Absolute Liquid Ratio / Current Liabilities
Table 18
Absolute Liquid Ratio
Year A.L Assets Current Liabilities A.L Ratio
2012 436.82 1055.77 0.41
2013 1451.85 2404.99 0.6
2014 2418.92 3652.59 0.66
2015 1785.18 3147.7 0.56
2016 1277.2 2581.62 0.49
Fig 10:
Absolute liquid Ratios
Table 19:
Working Capital Turnover Ratio
Working
Capital
Year Net Sales Working Capital Turnover Ratio
2012 2596.78 -152.27 -17.05
2013 1904.16 100.59 18.92
2014 2391.14 -711.83 -3.35
2015 2313.82 -349.73 -6.61
2016 2798.18 -325.15 -8.6
47
Fig 11:
Working Capital Turnover Ratios
Net profit ratio. Net profit ratio refers to the relation between net profit / loss during
the financial year. If the net profit ratio is high, it indicates the operational strength of
the organization. Net profit/loss is calculated by dividing net profit or loss of the
current year with its sales.
Table 20:
Net Profit Ratio
Net profit after
Year tax Net sales*100 Net Profit Ratio
2012 -197.85 2596.78 -7.61
2013 -51.02 1904.16 -2.67
2014 -871.58 2391.14 -36.45
2015 -342.91 2313.82 -14.82
2016 -618.46 2798.18 -22.1
Fig 12:
Net Profit Ratios
48
Table 21
P&L Comparison Chart for the year 2012-2016
Year Profit & Loss Change

2012 106449477
2013 (-)46893127 Decrease
2014 (-)52223609 Increase
2015 (-)91130115 Increase
2016 (-)11220223 Decrease
Note: Adapted from Profit & Loss Account of the year 2012-2016.
Table 22:
Comparison of sales for the year 2012-2016.
Year Sales Change

2596.78
2012
1904.16 Decrease
2013 692.62
2391.14 Increase
2014 -486.98
2313.82 Decrease
2015 77.82
2798.18 Increase
2016 -484.36
Note: Adapted from Balance Sheet of the year 2011-2016.
49
3.2.4 Marketing Department. Marketing is the communication between a company
and the consumer audience that aims to increase the value of the company or its
merchandise, or to raise the profile of the company and its products in the public
mind. The purpose of marketing is to induce behavioural change in the receptive
audience. The American Marketing Association has defined marketing as "the
activity, set of institutions, and processes for creating, communicating, delivering, and
exchanging offerings that have value for customers, clients, partners, and society at
large.
Marketing activities. The company has a well-established marketing department.

There is an efficient sales force under the Marketing Manager. The whole system
comes under the General Manager TCL has got 14 sales representative throughout
Kerala.
Marketing distribution channel
Company Depots Stockiest
Dealers Customers
Table 23
Number of Dealers and stockiest in Kerala
WHITE CEMENT
STOCKIEST 25
DEALERS 2500
Table 24
Number of Dealers and Stockiest in Tamilnadu
WHITE CEMENT
STOCKIEST 6
DEALERS 100
50
Figure 13:
Structure of Marketing Department
Sales promotion. Other promotional activities include conducting dealers meetings

once in 2 years. In addition to these the company offers various incentive schemes for
its dealers according to their sales performance. Due to very low advertisement
budget the company does not engage in any large scale advertisement activities.
Products. The company is producing four products. Two products were launched in
the year 2000 and has got good marketing share.
51
1. Vembanad White Cement
2. Super Shelcem Cement Paint
3. Vembanad wall putty
The first two products are established and they have good demand in the market.
Vembanad White Cement has 40% market share and Super Shelcem Cement Paint
has30% market share in Kerala market. Vembanad White Cement has also market in
Tamil Nadu. Sales representatives go around the state for collecting the order other
than the networks. TCL supply its products to various government agencies like
PWD, FACT, public sector companies etc. at special rates.
Table 25:
Pricing of the products
Item Qty(kg) Price
VembanadWhite 50 866.75
Cement(Kerala)
VembanadWhite 50 797.00
Cement(Outside Kerala)
VembanadWhite Cement 5 118.50
VembanadWhite Cement 1 24.10
Super Shelcem Cement 1 34.40
Paint
Paint
Paint
Paint
Vembanad Wall Putty 5 180
Vembanad Wall Putty 20 619
52
Reason for high price. The production process of the company is very old, known as
wet process. It is very expensive. This is the only company which uses the old wet
process. The other companies use dry process which is comparatively less expensive
and hence their price is low. Nut in the case of TCL products the raw materials
particularly lime shell and white clay is scare. So price of these products are very
high.
Marketing channels & practices. The company has got six sales representatives
throughout Kerala. White cement is produced only in Kottayam. It is having sales
offices and warehouse at Bangalore, Coimbatore, Kolkata and Delhi. Transportation
is conducted by trucks and railway wagons to distant places. The Regional office is at
Trivandrum.
Market share. Today out of the total production of white cement in India, the market
share of Vembanad white cement is 20 %.
Procedure for marketing and distribution: The company has been carrying out
production oriented strategy because of the monopoly of the Vembanad brand. With
the entry of competitors a marketing oriented strategy is formulated. The company
depends on distributors in various regions. The payment is to be made in advance by
demand draft in the case of white cement and by cheque in the case of cement paint.
The company offers commission in the form of trade discount to their stockiest.
Discount allowed by TCL: The company gives trade discount of 10% and cash
discount of 4% for purchase of 250 kg and above. The company allows 3% discount
on freight allowances and 3% on special discount. In every 3 months the company
gives 1% quantity discount for 200 kg. 2%discount for 50kg. They also give an
annual discount of 3%.
53
3.2.5 Dredging Department. The main raw material for the production of Vembanad
white cement is lime shell, an underwater deposit in the Vembanad Lake. It is
dredged and brought to the company by means of power barges. The company has
two dredgers, one hydraulic dredger named ‘LOKNATHAN’ of 5000 gallons
capacity and one mechanical dredger of 2000 gallons capacity. The dredger can cut
the lime shell around 40ft maximum depth. The dredger works on two powerful
engines, a dredger pamper engine and an auxiliary engine.
Dredging Department
Figure 14:
Structure of Dredging Department
3.2.6 Transportation Department. Mainly water transportation facilities are used to

bring lime shell from the Vembanad Lake. The company has two dredgers of which
one is hydraulic and other is mechanical. Dredger is used for cutting and sucking lime
shell from the river bed. These are 6 Barges and the capacity of each Barge is 70 tons
54
approximately. The Barges are used for transporting lime shell from the Vembanad
Lake to the unloading station.
The capacity of 2 dredgers is 30 tons per hour, the cutter of dredger is about 10m in
length, and the capacity of a wooden barge is 70 tonnes.
Figure 15:
Structure of Transportation Department
3.2.7 Laboratory Department. There are three levels of testing conducted in the
laboratory are follows.
Raw material testing. Raw materials are tested to ensure the quality of final products.
Intermediate testing. In this testing slurry is tested for finding out whether it contains
right proportion of lime shell, sand, clay and water.
Final product testing. Final product testing is done before the grinding of lime shell,
sand and clay.
55
Figure 16:
Structure of Laboratory Department
3.2.8 Medical Department. This department provides medical aid to both permanent
and temporary employees. The medical leave of the employees is recorded and
sanctioned by this department.
Figure 17:
Structure of Medical Department
56
3.2.9 General Stores Department
Location & layout. The location of stores department should be carefully planned out
and it should be housed in a position which is very near to the receiving department,
so that transportation charges are at a minimum. In TCL stores department is near to
the consumable department. The layout of the stores department needs careful
consideration. The centralized store is divided into racks, which is further divided into
small spaces. All these spaces are known as bins.
Bin card. A bin card makes a record of the receipt and issues of materials and is kept
for each item of stores it carries. Quantity of stock received and issued is recorded in
the respective columns of the bin card and the balance is readily available. A bin card
is usually hung up or placed in a shelf, rack or bin where the materials are kept.
KARDE- X card. This card is used by store keeper in addition to the bin cards for
storing list of stock of items. The company does not maintain a stores ledger, instead
of this all the details are stored using software in the computer. The existing system is
fox pro based system to stores record.
Figure 18:
Structure of General Stores Department
57
3.2.10 Electrical Department. The total number of employees working in the
electrical maintenance section is 24, out of which 12 employees are concerned with
the electrical maintenance of the plant and other 12 undertake the maintenance work
of the power plant. The company has its own substation for power supply. In order to
ensure the safe and smooth operation of electrical machinery and equipment’s, a five
tier system of electrical maintenance is practiced here.
Daily inspection and checking. Heavy electrical machineries like transformers, mill
motors, compressor motors etc. are checked by Chief Electrician, on a daily basis
before it starts functioning. If any minor fault will find out, it may be attended by
himself. Otherwise it would be informed to the electrical department.
Periodical inspection and checking: .All the electrical equipment’s and machineries
are periodically checked by Electrical section in order to ensure the safety of workers
and also for the smooth functioning of the department.
Breakdown maintenance: In case of any breakdown of the machineries in the

production department, information regarding the breakdown is given to the
maintenance department, and subsequently maintenance workers are sent to
production department to solve the machine failure.
Preventive maintenance: Under this activity, a team of maintenance workers is sent

directly to the production plant to find out whether there is any failure in the
machinery or not.
Shutdown maintenance: When the plant is shut down due to the failure, the
employees in the production department sent a letter to the maintenance department to
solve the problem
58
Figure 19:
Structure of Electrical Department
3.2.11 Purchase Department

Functions of purchase department. Main functions of purchase department are
placing order, inviting quotations and correspondence
To perform the function effectively, the purchase department is guided by the
following procedure.
Purchase requisitions. The purchase officers does not initiate any action for
purchasing of materials on his own accord. With the help of purchase requisition, the
purchase officer comes to know the types of materials needed by the organisation. A
purchase requisition is a form used as a formal request for the purchasing department
to purchase materials.
Exploring the sources of supply and selecting the supplier. The source of supply of
materials is to be selected after the receipt of purchase requisition. The process of
59
choosing the supplier is not hard task. The store keeper generally mentions the name
of current suppliers, their price quotations and the purchase department also has a
series of good suppliers. Choosing the right supplier from the suppliers list involves a
process of comparison of statement of purchases. It is prepared by the purchase
department.
Purchasing order. After choosing the supplier, the purchase department prepares the
order for the supply. The order is a written authorization to the supplier to supply the
particular materials. It is the documentary evidence between the buyer and the
supplier having the terms and conditions of the purchasing order.
Receiving and inspecting materials. In large concerns a separate receipt & inspection
department independent of stocking location should be setup to receive and inspect
the materials. But in small concerns, the work is done by the store keeper. In TCL the
stores department effects the general purchase. When goods are received in stores the
consuming department is informed and its personnel inspect the quality, quantity etc.
Vendor rating. A vendor is rated according to his monopoly in the market, brand
equity of the products, his established dealings with other reputed organisations.
There is a vendor evaluation committee for the vendors. The committee consists of
officers from concerning finance and material departments. The vendors rated below
50% are removed from the lists. Vendors rated between 50% & 75% are advised to
improve their quality.
Conditions regarding receipt of goods. If the suppliers are within Kerala, goods are
to be received within 15 days of sending/ inviting quotations for outside suppliers of
Kerala it is 20 to 30 days.The company follows an authorized purchasing system. The
purchase units are as follows:
• Below Rs.25, 000 purchases are authorized to store manager and sanctioned by chief
manager.
• From Rs 25,000 to Rs 1, 00,000, chief manager should sanction.
60
• From Rs 1, 00,000 to Rs 10, 00,000 should be signed and approved by the managing
director.
• Above Rs. 10, 00,000 should be approved by the Board of Director.
3.2.12 Packing House. Here cement is drawn from storage spoils and packed in the
paper bags by automatic machines and dispatched. Packing house is situated just
opposite to the plant. There is a conveyor belt connected from the plant for the
smooth transfer of cements from the plant to the silo. One silo is there in the packing
house for storing the cements from the plant. From silo bucket elevators are there for
making the cements storing into the warehouse or in bag. A small conveyor belt is
there in the packing house for loading the cement packets into the truck. The main
function of packing house is loading and unloading of cements into trucks with
minimum time and without any destruction of packets. In addition to that, sales
interaction, how many vehicles loaded, and dispatching etc. are dealt in this
department. The packing house is dealing with 50 kg automatic packing. The packing
house is providing a paper bag for packing purpose.
3.2.13 Time Office. The main function of the time office is the Attendance Data
Management of all employees. In the time office, there is a Chief Time Keeper and 5
time keepers are under him. The employees of the Travancore Cements Ltd provided
with a Time Rating Card. They have to punch-in their cards while entering the
organisation and punch-out the card before leaving the company. Officers and staffs
having the card.
Figure 20:
Structure of Time office Department
61
3.2.14 Material Handling Department. The material handling department is mainly
dealing with loading and unloading of raw materials. There are 36 workers working
under the material handling department. The helpers in this department are diverted to
work in the mill section of the plant. This department is located near cement plant.
The main functions of the material handling department are the unloading of raw
materials from the truck and handling of machineries used in the cement plant
department. There are so many earth moving equipment are under this department. In
some emergency situations the helpers of this department is diverted to do duties of
production departments like mill house dust cleaner.
Figure 21:
Structure of Material Handling Department
3.2.15 Civil Engineering Department. This department is mainly concerned with the
civil engineering works, manufacturing and controls of various machines etc. There
are 4 employees working in this department.
62
3.2.16 Security Department. Security department is concerned with the security and
control of the company. There are 24 people working on shift basis.
3.2.17 Sanitation Department. This department is concerned with the cleanliness of

the company. It also undertakes proper maintenance of premises of the company.
3.2.18 Workshop Department. The main function of workshop department is

maintenance. All maintenance of transport, material and plant is under this
department. The main section of this department are mechanics section, filters
section, blacksmith section, runner and machine operators section, welders section
khalasi (person used at time of accidents) section, cockers and carpenters section and
automobile section
Total number of workers in mechanical section is 75 out of which are 4 are charge
hands assisted by a foreman and an attender. The rest include the officers and other
skilled workers.
63
Figure 22:
Structure of Workshop Department
64
3.2.19 Organisational Analysis
SWOT Analysis. It is a tool that identifies the strengths, weaknesses, opportunities
and threats of an organisation. Specifically, SWOT is a basic, straight forward model
that assesses what an organisation can and cannot do as well as its potential
opportunities and threats.
Strength
1. Travancore cements ltd is the only IMFL manufacturer in the Central
Travancore.
2. As T.C.L is a government owned firm, it enjoys all privilege granted by the
government.
3. The standard quality of their products is their great strength.
4. Trade unions are vital part of any organisation. T.C.L experience good co-
operation from the various trade unions present there.
5. Good organisational climate also adds to the strength of T.C.L.
6. Efficient quality control systems also add to its strength.
7. Employees are maintaining good relation with each other.
8. Maximum utilization of resources.
Weakness
1. Excess manpower is the major weakness of the firm. The company at present
has more employees than required. Wastage of money through the payment of
salary and other things to this excess supply of manpower.
2. Lack of modern technology is another weakness of the firm. They are still
using the outdated machinery and technology. The technology now followed
by them is 24 years old.
3. Unnecessary influence on the part of government and the political parties.
4. Higher cost of the products compared to the competitors product.
5. There is no proper mechanism to handle the grievances of the customers.
6. Absence of computerization is also another weakness of the company.
7. Unnecessary formalities cause a delay in business decisions.
8. Lack of raw materials cause a disruption in the production process.
65
Opportunity
1. The budget amount should be used wisely so as to get maximum visibility for
the product.
2. Company introduces promotional programmes.
3. The company should opt for psychographic segmentation of the market.
Where more stress should be given for the quality and fitness of the product.
4. It should expand the distribution network to that place where the product is
less available.
5. It should switch on to newer technologies in order reduce its cost.
Threats
1. Scarcity of raw materials is the major threat faced by the company.
2. Outdated techniques are still followed.
3. Good replacement facility of other brands.
4. Hike in price of raw materials.
5. Time to change in government policies.
6. Increase in the labour cost is one of the important threats to the company.
7. The customer’s requirements are changing day by day. It is another threat to
the company.
66
CHAPTER FOUR
OBSERVATIONS AND
CONCLUSIONS
Chapter 4. OBSERVATIONS AND CONCLUSIONS
4.1 Observations. TCL is the only one firm producing white cement using lime shell.
The new workers are provided with less training. There is no planning and control of
the inventory. The company is providing good working conditions. The process of
control and monitoring is not sufficient. Company is facing more threats from
competitors. Outdated techniques are still followed in the organization. A proper
information system is absent in the organisation. Customer services are very poor in
the organisation.
4.2 Conclusion. TCL Kottayam is in the White cement industry. It is an ISO 9002
certified company which was certified by Bureau of Indian Standards. This shows
company’s consciousness towards high quality production. This study provided useful
insights into the company and its functioning. The company had done a great task in
the provision of cement products to cater the needs of construction industry in a big
way. The Vembanad cement is the forerunner among other cements. The vision of the
founders and the commitment of the workers led the TCL ahead. One should be proud
to have Kerala in the industrial map on India. The true that TCL is strangled with tight
competition. But it can surely overcome through innovative strategies by making TCL
product available everywhere. The bright prospects of TCL lies in the implementation
of new technology, improving marketing strategy, optimum utilization of employee
potential and welfare of employees TCL which can go miles ahead with appropriate
backing up by the government. It is an enterprise that used to earn huge profits and
can still regain its prestige and market share in future.
4.3 Suggestions. The company should obtain financial assistance from the
government because of the loss and financial problems. The company should upgrade
its finance department with accounting software still they are using outdated soft
wares for accounting activities. A customer cell is needed for customer support and
complaint handling complaints should be rectified in the shortest possible time. Give
more importance in inventory management and make proper supply chain
management system. Training must be given to the employees in order to improve
their performance.
68
BIBLIOGRAPHY
Travancore Cements Limited (2015).Travancore Cements Limited Annual

Report.Kottayam.Retrieved from www.travancorecementslimited.com
on 29th April 2018.
Balkin B. David, Cardy L. Robert, Gomez-Mejia R. Luis. (2005). Managing
Human Resources, 4th Ed. New Delhi: Prentice-Hall of India Pvt Ltd.
David A Decenzo, Stephen P Robbins. Fundamentals of Human Resource
Management, 8th Ed. New Delhi:John Wiley & Sons Ltd.
Harold koontz, Heinsz Weihrich.(2008). Essentials of Management, 7th Ed.
New Delhi:Tata McGraw- Hill publishing company Ltd.
IBEF. (2018).Growth of Cement Industry in India. New Delhi.Retrieved from

https://www.ibef.org on 29th April2018.
Kondalkar V. G. (2007). Organisational Behaviour, 4th Ed.New

Delhi:New Age International (P) Ltd.
Kotler Philip. (1996). Marketing Management- Analysis, planning,
Implementation, and control, 8th Ed.New Delhi: Prentice-Hall of India
Pvt Ltd.
69

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AN ORGANIZATION STUDY ON

THE TRAVANCORE CEMENTS LTD.

Mr. CHRISTY JAMES

MAHATMA GANDHI UNIVERSITY

In partial fulfilment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Under the guidance of

Dr. GEORGE K. MATHEW

SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT

The Travancore Cements Ltd. Nattakom, Kottayam” is a bonafide record

submitted by Mr. Christy James, Reg. No. 101484, in partial fulfilment of

the requirements for the award of the degree of master of Business

Administration during the academic years 2017-2018.

Date: Dr. G. SASHI KUMAR

The Travancore Cements Ltd. Nattakom, Kottayam” has been

successfully completed by Mr. Christy James, Reg. No. 101484, in partial

fulfilment of the requirements for the award of the degree of Master of

Business Administration during the academic years 2017-2018.

Date: Dr. GEORGE K. MATHEW

Organizational Study on The Travancore Cements Ltd. Nattakom,

Kottayam” is my original work. I further declare that this report on the

study is based on the information collected by me and has not previously

been submitted to any other university or academic body.

Date: Christy James

I shall remain grateful to. Mr.V.B Ramachandran Nair, Managing Director of

I also express my profound gratitude to project guide Mr. Saji A. J. (Company

I express my sincere thanks to my guide and supervising faculty Dr. George K.

I also thank my beloved family members who encouraged me at every stage of my

The Organisation Study entitled “An Organizational study on The

Chapter No Title Page no.

Executive Summary vii

List of Tables and Figures ix

1.1 An Introduction to the Study 1

1.2 Scope of the study 1

1.3 Objectives of the study 2

1.5 Limitations of the Study 2

2 Analysis of Business Environment 3

2.1 Analysis of remote external environment 4

2.2 Industry Profile 6

2.3 Industry Analysis 12

3.1 Overview of the organization 17

3.2 Organizational structure and functional

4 Observations and Conclusion 66

Table 2 Components of Cement 7

Table 3 Current market scenario of Ultratech Cement 12

Table 4 Current market scenario of Shree Cement 12

Table 5 Current market scenario of Ambuja Cement 13

Table 6 Current market scenario of ACC Cement 13

Table 7 Milestones of Travancore Cements limited 18

Table 8 Board of Directors 18

Table 9 Technical specification of white cement 22

Table 10 Quantity specification of white cement 24

Table 11 Welfare facilities provided by the company 33

Table 12 Leave Pattern 35

Table 13 List of apprentices 36

Table 14 Allowances to employees 37

Table 15 Employee strength of TCL 38