Professional Documents
Culture Documents
Kerala Minerals and Metals Limited
Kerala Minerals and Metals Limited
Organization is a social group which contributes tasks for a collective goal. It is the
integration of various departments and its functions. For the success of an enterprise it is
important that there must be a well established organizational structure and proper levels of
administration. So as much as a future manager is concerned, it is essential to carry out a
study about various aspects of an organization and to be familiar with the different
organizational functions.
An organization study forms an important part of the curriculum of our MBA program
which is conducted in our 3rd semester. The main purpose of the study is to provide an
opportunity to the students to learn, observe, assimilate and analyze the various objectives,
vision and functioning of various departments within an organization. It may also be helpful
for the students to gather a practical knowledge within an organization and correlate it with
the concepts and theories which have been studied so far in class room.
1
Objectives of the Study
To acquire knowledge about the functional as well as the
managerial aspects.
To understand the organizational profile, the structure of
authority and different levels of management.
To compare theoretical knowledge with actual practices.
To understand the organization structure and the
working of various departments.
To know the quality standards.
2
Industry Profile
Titanium metal (Ti) is the ninth most abundant element found in the earth‟s crust.
Aerospace, sport and medicine are some of the common areas were the metal has
applications mainly due to its high resistance to corrosion. The credit of recognizing the
existence of titanium goes to Rev.William Gregor, who found traces of black magnetic at
Manaccan Parish (UK) in 1790 and he named it menaccanite. But it was in 1795, M.Klaporth
who discovered „Titanium‟. He examined rutile and identified it as an oxide of a metal and
named it as Titanium‟ after Titan of Greek mythology.
It was named titan because according to Greek mythology Titan is a God who is very
hard to be pleased and since the reactivity of the pigment was feeble with almost anything.
The first commercial product of titanium was an alloy additive to steel, where few alloys
were developed in commercial scale. The use of titanium minerals in welding electrode
coating gained acceptance in the mid thirties while titanium metal has been of commercial
importance since 1948. The various titanium minerals include Rutile, Anatas, Ilmenite and
Leucoxene etc.
Mining of Ilmenite is carried out in several countries like Australia, Norway, Srilanka,
Malaysia, South Africa and India. The total reserved of world Ilmenite is estimated to be
approximately 1722 million tonnes range of heavy minerals in places deposits varies from
twenty to eighty percentages. Titanium dioxide is far more stable than any other pigment.
The light scattering property of finely divided titanium dioxide is unmatched by any other
non material. The chemical is available in two crystalline forms, viz. Anatase and Rutile,
which are of much commercial significance. This is because of the unique combination of
its superior properties of high refractive index, low specific gravity, high hiding power and
non toxicity. It also has high tinting strength and dispersion properties as well as chemical
stability. The titanium dioxide market is unique in that while it is a product approaching 100
years old, there are still no functional alternatives that provide the same value for the use of
customers. The industry has gone through a metamorphosis in the past decade.
3
Looking over the next 20 years, at least some new Titanium dioxide pigment will be
made, though most of industries additional capacity will come from expansion pigment
consumption rose sharply in Western Europe and Asia/Pacific (excluding Japan) during the
year 2000. East Asia is presently the most attractive region in the world for Titanium
dioxide.
• Hoitex, USA
• Millennium, Germany
• Totins, Netherlands
60 57
50
40
30
20
20 13
10
10
Presently there are four units in India engaged in the manufacturing of the Titanium
Dioxide Pigment with a combined capacity of 44,560 metric tons per annum.
These units are:-
• KMML, Chavara
• Travancore Titanium Product Ltd (TTP), Trivandrum
• Kilburn Chemical Ltd, Chennai
• Kolmark Chemical Ltd,
5
Kolkata State Scenario
(KERALA):
God‟s Own Country is best owned with a long coastal belt. At present in Kerala,
TTP and KMML are the only two manufacturers who produce titanium dioxide pigment.
Indian Rare Earth Ltd (IRE), a Government of India undertaking has a mineral separation
unit in Chavara which separates minerals from the beach sands. IRE also operates two
mineral separation units, which are located in Manavalakurichi in Tamil Nadu and
Challarpur in Orissa. Firstly Travancore products were started by His Highness Chitira
Thirunal in 1946 and titanium dioxide using the sulphate process technology. Later the
KMML which was situated in Chavara came into existence and started producing Titanium
Dioxide with the help of HCL acid process technology (chloride technology).
Present Status:
Challenges:
6
COMPANY PROFILE
The Kerala Minerals and Metals Ltd, KMML is the largest manufacturing unit among
the state level public sector enterprises while establishing this industry;
Initially the company had only one unit know as Mineral Separation Plant. In 1974
the company received intent for the production of Titanium dioxide (Tio2) pigment using
chloride process. In 1976, KMML registered its second unit known as Titanium dioxide
pigment plant. Its construction started only in 1979 and total capital cost was Rs.144 crore.
The plant was commissioned in December1984. KMML become the first and only
integrated Titanium dioxide plant in the world. KMML was commissioned in 1984 it was
not able to operate efficiently due to technical problems. Due to these problems the company
has to suffer an accumulated loss of more than the capital investment over a period of 8
years.
In the above circumstances, it was in 1991 that the entire personnel of KMML from
top management to down to the lowest workers started to think individually and collectively
about the requirement of a “Turn Around”. A strategy was planned and implemented with
the whole hearted support of the workforce during the year 1991-1993.
7
It started to yield results and the company attained the breakeven level by 1993. From
1993-1994 onwards, the company started to make profits and wiped out the entire
accumulated loss within a few years and repaid the long term loans. Thereafter, it is the story
of success and growth.
Today, with over 2000 employees and a range of products, KMML has become part
and parcel of local and international life. The construction of titanium dioxide pigment using
chloride technology began in 1979, and was commissioned in 1984 as the first and only
integrated titanium dioxide plant in the world.
• Vision of KMML
• Mission of KMML
8
Objectives of KMML
Ownership Pattern:
KMML is an integrated titanium dioxide manufacturing public sector undertaking in
Kerala, India. Its operations comprise mining, mineral separation, synthetic rutile and
pigment-production plants. By 1932, a private entrepreneur established the F. X. Perira and
Sons (Travancore) Pvt. Ltd, the forerunner to KMML. Ownership of the company
subsequently changed hands three times, after which in 1956 it was taken over by the state
government and placed under the control of the industries department. The unit was
subsequently converted as a limited company in 1972 by the name of „The Kerala Minerals
and Metals Ltd.‟ with the objectives of better utilisation of mineral wealth found along the
sea coast of Kollam and Alappuzha and also generation of growth and employment in the
state in general and the local area in particular.
Certification:
9
Pollution Control by KMML:
KMML has elaborate pollution control system with respect to both water and air
pollution. The waste (acidic) from Ilmenite Beneficiation Plant is sent to Effluent
Neutralization Plant (ENP). ENP consist of a Primary Neutralization Tank (PNT) and
Secondary Neutralization Tank (SNT) where it is treated with caustic soda solution. The
totally neutralized slurry from the SNT is pumped to 50000m3 capacity setting pond provided
with impervious clay, polythene lining at bottom side where the solids are settled. The day
solution from setting pond of 25000m3 capacity where the balance solids are allowed to settle
the clean water from the polishing pond meeting all specification stipulated by Pollution
Control Board authorities is pumped in Arabian Sea.
All gases from Chlorination, Oxidation, Ilmenite Beneficiation Plant and Acid
Regeneration Plant are scrubbed water or line or caustic solution to absorb the toxic gases
diluted with enough fresh air and only let out to the atmosphere through tall slacks.
Major Consumers:
Paint industry contributes a large number of consumers of Tio2. Other largest
customers include such industries as paper, plastic, polyester etc. The bulk of the products in
KMML are consumed by the industries namely:-
• Asian Paints
• Berger Paints
• Shalimar paints
• Nerolac Paints
• Sanderson Chemicals
• Mega Meditex
• Plastics chemists industries
• Rajdoot paints
• Bombay Paints
10
Product Profile:
KMML always maintain high standards of perfection, achieving technical excellences
in every phase of production. Catering to strict guidelines, KMML offers a wide range of
products for quality conscious customers. Products go into the manufacture of a variety of
products used in everyday life. Dress materials, facial creams, tablets, newsprints, wood
paints, emulsions, enamels, plastics, tooth paste, rubber products, cosmetics and printing ink
all contain titanium dioxide.
KMML offers Rutile grade Tio2 as the main product and also offers zircon, leucoxene,
titanium tetra chloride as the secondary products. Titanium tetra chloride is extensively used
in manufacture of titanium dioxide pigment, titanium sponge or metal.
11
Quality Management System
KMML achieved ISO 9002 certificate by M/S Bureau Virtues Quality
Management (BVQM), Holes certification of United Kingdom Accreditations Service, Dutch
Council for certification (Holland) and Register Accreditations Board (USA). KMML has
won the 1997 National Award for in-house research and development effort in industry for
technology absorption under the TAAS programme. The Kerala Productivity Council award
for high productivity standard has also been won by KMML.
Objectives
• Continual improvement in the areas of delivery.
• Encouraging innovation and technology updating.
• Training and empowering the work force.
• Better communication, cost reduction
• Safe and clear space.
• Caring for requirement of the society.
• Compliance with documented quality system.
Objectives
12
OHSAS 18001:1999 (Occupational health and safety)
According to KMML “Wherever there is human touch we will protect it”. KMML
not only protects and safeguards the human resource in the organization but also care for the
person who lives near to the organization.
Pollution Control
KMML has elaborate Pollution Control system with respect to both water and air
pollution. The waste (acidic) from Ilmenite Beneficiation Plant is sent to Effluent
Neutralization Plant (ENP). ENP consist of a Primary Neutralization Tank (PNT) and
Secondary Neutralized Tank (SNT) where it is treated with caustic soda solution. The totally
neutralization slurry from the SNT is pumped to 50000m3 capacity setting pond provided
with impervious clay, polythene lining at bottom side where the solids are settled. The day
solution from setting pond of 25000m3 capacity where the balance solids are allowed to settle
the clean water from the polishing pond meeting all specification stipulated by Pollution
Control board authorities is pumped in Arabian sea.
Corporate Social Responsibility (CSR)
According to KMML “The world that we share is given to us in trust. Every choice
we make regarding the earth, air and water around us should be made with the objective
of preserving it for all the generations to come.”
13
Some CSR activities of KMML includes:
• A destination plant ensures that ground water levels are maintained at safe levels
and the ecological balance is not affective due to the water requirement of the
company.
• Provision of drinking water for surroundings villages has been provided through
52km of pipeline.
• Regulation medical camps and other programmes for the health maintenance.
• Financial assistance for schools, clubs and other non charitable bodies for
purchasing books, furniture etc.
Infrastructural Facilities:
Following are the infrastructural facilities provided by KMML:
• Hospital facility with one male and one female qualified doctors and pharmacy
is also available in all three shifts.
• Canteen facility with good vegetarian food is provided for all employees.
Company will charge rupees 6 per day for three times food from every
employees. Canteen is under the control of the company.
• Purified cool drinking water facility is provided inside the plant. ATM facility
of ICICI bank is also provided inside the bank.
• Adequate toilet facility is also provided.
Future Growth And Prospects of KMML
KMML is studying the possibility of the productivity of more economic
Titanium metal sheets. Recently researchers at R&D department established that Aeronautic
industry could use Titanium metal of aluminium alloy coverings. The company is in the
process of expansion and the target expected is approximately shown below:-
• A new mineral separation plant of two lakh tones per year Ilmenite.
• A new synthetic Rutile plant of capacity 1.3 lakh tones per year.
• A new 100 tons per day oxygen plant.
• Capacity enhancement of Tio2 pigment plant of 1 lakh tones per year.
• Raising production to 60,000 tones.
• Titanium sponge plant.
14
Government of Kerala has cleared KMML‟s proposal for the process of Titanium Tetra
Chloride project named „Titanium Sponge Unit‟. The sponge thus produced will later on
converted to Titanium INGOT (metallic forum). The strategic metal is now widely used in
chemical industries, laptop computers, mobile phones and sports goods only a few countries
such as Japan, Russia, USA, UK, China and Germany have the technology available with
scientific industries for the process of Titanium sponge for its commercial value.
Organization Structure
An organizational chart often called organization structure is a diagram that shows the
structure of an organization and the relationships and relative ranks of its parts and
positions/jobs. An organizational chart of a company usually shows the managers and sub-
workers who make up an organization. It also shows the relationships between directors:
managing director, chief executive officer of various departments. In many large companies
the organization chart can be large and incredibly complicated and is therefore sometimes
dissected into smaller charts for each individual department within the organization.
KMML believes that a plan without a strategy is like a dream unfulfilled. So they invest
some time in studying and creating a business organization structure that will best serve your
company. Similarly the organization chart of KMML clearly shows the relationship between
the Managing Director, other directors and employees of the organization. Managing Director
has the power and authority o control all the activities in the organization. Executive Directors
of TP and TSP comes under the MD. Under ED the Joint General Manager of P&A will come.
Then DGM is under the JGM and then all the Asst. General Managers and under this the
managers of maintenance, electronic and technical are appointed. In ED of TSP also the AGM
under DGM and below the managers will be appointed.
DGM of Production, Marketing, Fire and Safety and the other departments and also GM
of Finance is having equal power. Below the DGM of each department the assistants are
appointed. A co-secretary is also appointed under the Head of finance department. Under all
the AGM the Plant Managers are appointed in order to carry out the work. And under each
Plant Managers the Deputy Plant Managers is there to give support to them. Under the DGM
of Fire and Safety Department the Managers, Safety Officer and also a Fireman will come.
The Safety Officer has the obligation to give training to all the employees regarding the various
safety measures. Below this the peons and workers will come.
15
16
DEPARTMENT ANALYSIS:
As in every public sector KMML also has number of separate departments and their
respective executive heads. The functional department of an organization function or
activities are categorized into different groups. The application of functional form of
department means grouping activities into departments of production, marketing, human
resource development and finance. Each department specializes in its own area of production.
Production department
Marketing department
Finance department
Material department
Personnel and Administration department
Fire and Safety department
Data processing department
Technical department
Project department
Maintenance department
Research and Development department
17
1. Production Department
The production department plays a vital role in KMML. It is equipped with latest state
of art technologies. It strives to accomplish a high standard by achieving technical excellence
in every phase of production. The plant works 24hrs a day with three shifts. Occasionally the
plant is closed for maintenance work. The production department comprises of two divisions,
namely Production Planning division and Production division.
In KMML production is the functional area responsible for turning inputs into
finished outputs through a series production process. The main functions of production
department are:
18
2. Marketing Department
“Marketing is a social and managerial process by which individuals and groups obtain
what they need and want through creating and exchanging products and value with others”
-Philip Kotler
KMML is the world‟s first fully integrated Titanium Dioxide plant. The company has
indulged in the manufacturing of world class Titanium Dioxide. It has been ranked among
the top ten companies in the world for producing its own product which consist of mining,
mineral processing and manufacturing. KMML is a public limited company that stands as a
leader in production of TiO2. KMML has a large number of customers all over India and
outside. The marketing department is engaged in selling of the company‟s product. The
marketing section keeps detailed report about customers‟ product, product group control,
dispatch and payment.
Manager (Marketing)
Officer (Marketing)
Steno cum Typist
19
Objectives
One of the objectives of KMML is providing satisfaction to the customers. So they
are concentrating to produce quality product. Every year they set a target growth rate for
achieving this target they give prime importance to the quality rather than profit.
Functions
The main functions of the marketing department can be classified into
20
3. Finance Department
Finance department is the core part of any organization. It deals with both the
acquisition as well as allocation of funds. The finance department in an organization is
responsible for maintaining fair and just accounting, working capital management, long term
funding decision making, costing etc.
The finance department is headed by Deputy General Manager (finance) who is
assisted by a Manager, Deputy Manager, accounts officer and other officers KMML has two
independent production units & for each unit the company is maintaining separate books of
accounts. The units are called as Titanium pigment (TPU) and Mineral Separation unit
(MSU). Titanium Pigment Unit is a chemical factory, under the Factories Act 1948, whereas
Mineral Separation Plant is a mining unit under the Mining Act.
21
4. Material Department
All functions relating to purchase and storage of material for the company is carried
out by this department. This department is headed by the Deputy General Manager (material)
and he is assisted by manager (purchase & stores), purchase officers, sales officers and other
staffs. Purchase is one such department, if functioning properly can bring about profit to the
organization by carefully monitoring its purchase activity, i.e. maintenance of well developed
vendor list and through inventory control. There is around 27000 items of raw materials in
KMML. The functions of material department can be grouped into three:-
• Purchase
• Stores
• Inventory control
22
5. Personnel and Administration Department
Human resource is one of the most valuable resources as far as a company is concerned.
The management of man is very important and challenging job. The proper utilization of this
resource will indicate whether a company is successful or not. The story of KMML lies in the
personnel and administrative department‟s ability to handle the human resource.
Personnel Department is concerned with the people‟s dimension in organization. The
sincerity and dedication of the employees in KMML is a major success factor. With a full-
fledged Human Resource department, regular training and refresher courses are part of the
company life. Apart from skill betterment, this course inculcates quality consciousness, safety
awareness and contributes to personality development. There are around 1121 employees in
the company. Join General Manager (Personnel and Administration) is the head of the
department.
Functions
The major functions of personnel department are as follows:
23
6. Fire and Safety Department
KMML has an effective safety department, which manage the process of giving security
to employees by providing training & giving license to employee and mechanist. The
department is headed by the Assistant General Manager (FRS). The safety department is
supported by one safety officer, one safety inspector and three technical officers where as the
fire department is assisted by a fire officer, leading fireman, fireman and the fire tender drivers.
The safety department is given the authority to step any work in case safety particles are not
followed during the execution of the job. The safety department carries out the following
activities:
• Mock drill
• Statutory approvals/ license/ records
• Plant inspection
• Accident reporting and investigation
• Safety promotion activities
• Safety committee
• Explosive and petroleum license
• Job safety analysis
• Investigation of occupational diseases
• Health and hygiene
24
7. Maintenance Department
• Civil.
• Mechanical.
• Electrical.
• Instrumentation.
25
8. Research and Development Department
KMML maintains a fully equipped R&D facility in the area of pigment and paint
technology with a view to establish world class products and competitiveness. The excellent
facility undertakes Research, Development and Product Improvement. Scientists and
engineers continuously pursue innovative technologies I the area of TiO2 pigment, quality
improvement and other allied products.
KMML‟s Research and Development has achieved following tasks in recent times:
• Developed new grade RC-802 will excellent balancing properties of glass and
weather ability.
26
9. Project Department
Project department is engaged in the expansion programs of the company. They are
engaged in the building up of new projects and also decide upon the future plans of the
company.
27
CONCLUSION
Kerala Minerals and Metals Limited (KMML) under the Government of Kerala is the
India‟s first and only manufacture of Rutile grade Titanium dioxide pigment using Chlorides
route. It has won National Acclaim for its impression performance. It produces about seven
grades of titanium dioxide pigment and its products range includes Titanium Tetra Chloride,
Ilmenite and Rutile etc. KMML has monopolistic position in the Rutile Titanium Dioxide
pigment industry in India. But the firm‟s position will be severely hit by zero percentage cut
in import duties of TiO2 pigment by 2006. Moreover its existence will be severely affected
by the chances of issuing closing orders by the Pollution Control Board of India. Like the
other organization. It also tries very hard to sort out its weakness and designs new strategies
for converting the organization into an ever-flourishing organization.
Success of a company depends on the strategic management of all the available
resources. External and internal environment decide the growth of the company. Strategic
management is concerned with controlling and managing of this environment. It has to go
forward with its great vision and mission.
28
BIBLIOGRAPHY
Books:
Website:
29