ORGANIZATION STRUCTURE TRAINING

AT
GOCL CORPORATION LIMITED

A Report submitted in partial fulfilment of the requirements for the degree of

Master of Business Administration

By

KRISHNA SANKAR.B
1727919

Under the Guidance of

PROF. APARNA PURANIK

Institute of Management
Christ University, Bangalore

JUNE 2017

1
 ORGANIZATION STRUCTURE TRAINING
AT
GOCL CORPORATION LIMITED

A Report submitted in partial fulfilment of the requirements for the degree of

Master of Business Administration

By

KRISHNA SANKAR.B
1727919

Under the Guidance of

PROF. APARNA PURANIK

Institute of Management
Christ University, Bangalore
JUNE 2017

2
 Declaration

I hereby declare that the Organization Structure Training report on GOCL Ltd., has been undertaken
by me for the award of Master of Business Administration degree. I have completed this study under
the guidance of Prof.Aparna Puranik

I also declare that this Organization Structure Training report has not been submitted for the award of
any Degree, Diploma, Associate ship, Fellowship or any other title, in Christ University or in any
other university.

Place: Bengaluru ______Signature_____________

Date: 1/07/2017 Krishna Sankar.B
(1727919)

3
 Certificate

This is to certify that the Organization Structure Training report submitted by Krishna Sankar.B
is a record of work done by him during the academic year 2017-18 under my guidance and
supervision in partial fulfillment of the requirements of Master of Business Administration degree.

Place: Bengaluru ______Signature______________

Date: Prof. Aparna Puranik
Institute of Management
Christ University
Bengaluru

4
5
6
 Acknowledgement

I am indebted to all the people who helped me accomplish this Organisation Structure
Training successfully.

First, I thank the Vice Chancellor Dr Fr Thomas C Mathew, Christ University for giving me
the opportunity to do my project.

I thank Dr.Suniti Phadke, Dean Prof. Sudhindra S, Associate Dean, Prof. Shrikanth Rao,
Head of the Department, Institute of Management, Christ University for their kind support.

I thank Prof. Aparnik Puranik and Prof. Aarti arun kumar for their support and guidance
during my training. I remember him with much gratitude for his patience and motivation, but for
which I could not have submitted this work.

I wish to express my sincere thanks to my corporate mentor, Mr Manoj kumar Sharma, HR

Manager, GOCL Ltd., for giving me an opportunity to work under his guidance and successfully
complete my training.

I thank my parents for their blessings and constant support, without which this training would
not have seen the light of day.

Krishna Sankar.B
(1727919)

7
 TABLE OF CONTENTS

CHAPTER DESCRIPTION

1 INTRODUCTION 9

2 INDUSTRY PROFILE 10

3 COMPANY PROFILE 15

4 PRODUCT PROFILE 21

5 ORGANISATION 25
STRUCTURE

6 SWOT ANALYSIS 39

7 FINDINGS AND 40
RECOMMENDATIONS

8
 Introduction

Organisation is defined as the “Association of various departments in the firm in which all work
collectively in attaining the goals & objectives of the company by rendering the valuable services
towards it by both employers and management”.

OBJECTIVES OF ORGANIZATION STUDY:

 To know about history, company profile, product profile.
 To know Vision, Mission, Objectives and Strategies of the company.
 To identify safety, security and welfare measures of company regarding their workers.
 To know Key result area of the Company and success factors.
 To know the Corporate Social Responsibility of the company.
 To know company corporate structure and hierarchy of individual departments.
 To know organizational activities in all functional areas.
 To know the strength, weakness, opportunities and threads (SWOT Analysis) of company.

SCOPE OF STUDY:
This report mainly focuses on company’s profile and different departments such as
Marketing, Finance, Human Resources department, Production department and Materials
Department. The project study is to conduct detailed study on different departments, their
working and finding problems and shortcomings.

LIMITATION:

 The outcome of the study is highly dependent on the perception, attitude and understanding
of the observer.

9
  Sometimes the management is not interested to disclose their documents to the observer.

 The report may be wrong if the data collected during the study is not accurate.

 Organization study needs more time as its purpose is to study the overall structure and
operation of a business unit.

 The attitude, co-operation and transparency of the management also affects the outcome of
the organization Structure Training.

Overview of Industrial Explosive Industry in India

The growth of our “Industrial Explosives Division” and “Mining and Infrastructure Division” is
directly related to the spending and growth in the mining and infrastructure sector in India. Majority
of the consumption of the industrial explosives is by the mining sector and particularly the coal
segment.
Besides mining, demand for explosives is also driven by infrastructure spending.
Industrial explosives are a vital part of construction projects, and indispensable for mining activities
whether it is coal, limestone, iron ore, copper, bauxite, or any other mineral. Prior to 1958, the entire
requirement of explosives in India was met with explosives imported from United Kingdom (U.K.),
Sweden and the United States (US). The first plant for manufacture of the explosives in India was set
up in 1958 by ICI India Limited (a fully owned subsidiary of ICI of UK) at Gomia in Bihar. Later
on,Indian Detonators Limited (Hyderabad), IBP Company Limited (Korba), Maharashtra Explosives
Limited (Nagpur), Noble Explochem Limited (Nagpur), Tamil Nadu Industrial Explosives Limited
(Vellore), Bharat Explosives Limited (Lalitpur), Premier Explosives Limited (Hyderabad) etc., also
started manufacturing different kinds of explosives

Demand for Industrial Explosives

The growth of the industrial explosives industry mainly depends on the following sectors:
• Mining
o Coal
o Other minerals
• Infrastructure and construction
The total demand in the explosives industry is mainly derived from the mining sector & the

10
construction sector which includes hydro-electric, roads, irrigation, well sinking and minor irrigation
projects. The mining sector is dominated by coal mining and constitutes a major portion of the total
mining demand for explosives.

Overview of Mining Industry

India is endowed with significant mineral resources. Presently about 90 minerals are produced in the
country, which include 4 fuel minerals, 10 metallic minerals, 50 non-metallic minerals, 3 atomic
minerals, and 23 minor minerals.
Although India has a huge deposit of reserves, low spending on the exploration activities has resulted
in non- realization of the mineral potential in the country. Reserve-to-resource ratio is lower in the
case of India as compared with global reserve-to-resources ratio except for lead and zinc. A low
reserve to resource ratio even though highlights the low spending on exploration and mining activity
but nevertheless demonstrates the huge potential for mining in India.

Infrastructure and Construction

The second most important segment for the industrial explosives market is infrastructure and
construction. India offers one of the biggest infrastructure opportunities in the world with ambitious
plans for expansion and modernization. India’s Gross Domestic Product (GDP) has grown from USD
400bn a decade ago to nearly USD 1tn currently. Corresponding increases in manufacturing,
disposable incomes and personal consumption have put tremendous strain on the country’s already
inadequate infrastructure. Demand for power, transport and urban infrastructure facilities have
increased substantially without much increase in supply.

Realizing the need to build an adequate infrastructure, Government of India has envisaged a spend of
USD 494.4 billion in the Eleventh fiveyear plan (2007-12) and is targeting to increase infrastructure
spend as percentage of GDP from 5% in FY07 to 9% of GDP by 2012. Annual spend on
infrastructure is envisaged to grow from around USD 40 bn in FY07 to USD 143 bn by FY12.
Infrastructure spend of USD 494.4 bn in the Eleventh Five Year Plan of Government of India implies
a growth of 130.2% over the Tenth Five Year Plan of Government of India.

Lubricants Industry
The growth of our “Lubricant Division” is primarily related to the growth of the automobile industry.
A major part of the consumption of Lubricants is by the automobile sector which includes heavy

11
commercial vehicles (trucks, buses, and tractors), passenger vehicles and motorcycles. Besides the
demand for lubricants is also derived from the industrial sector including construction and mining.

Automobile Sector Is The Key Demand Driver For Lubricants

The demand for lubricants is primarily dependent on the automotive industry and its growth. Given
the positive growth scenario of the Indian automotive industry, the demand for automotive lubricants
in India is expected to grow at a healthy rate in the next few years. The market for lubricants in fact
can be sub-divided into 2 major segments - Automotive and Industrial.

BUSINESS OVERVIEW
Our Company is engaged in the manufacture of lubricants and chemical products (“Lubricants
Division”), industrial explosives, detonators (“Industrial Explosives Division”) and providing
services to the mining and infrastructure sectors (“Mining & Infrastructure Division”). We have nine
manufacturing facilities at Silvasa (Maharashtra), Hyderabad (Andhra Pradesh), Rourkela (Orissa),
Singrouli (Madhya Pradesh), Udaipur (Rajasthan), Rajarappa (Jharkhand), Dhanbad, (Bihar),
Korba(Chattisgarh) and Godavarikani (Andhra Pradesh). Besides these manufacturing locations we
have seven support bulk units located at Talcher, Barbil, Navamundi (all at Orissa), Rajmahal
(Bihar), Bishrampur (Madhya Pradesh), Chandrapur (Maharashtra) and Manuguru (Andhra Pradesh).
These support bulk units are storage facilities situated near the mines where bulk explosives are
stored.
The business of our company is organized under 3 (three) operating divisions
• The Lubricants Division which manufactures and markets lubricants, greases and automotive
accessories
• The Industrial Explosives Division which manufactures various types of industrial explosives,
detonators, boosters and detonating fuse which are used for carrying out blasting in mining and
civil infrastructure activities
• The Mining and Infrastructure Division which provides large scale mining services in coal and iron
ore mines as well as services to the infrastructure sector .The lubricants segment is the largest in
terms of its contribution to the total business of the company for the year March 31, 2009 with a
share of 48.83% to the consolidated revenues.
For the year ended March 31, 2009, our Company’s total consolidated revenue was Rs.102693.41
lakhs and our Company’s consolidated profit after tax before minority interest & share in associate
was Rs.1162.01 lakhs

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Key elements of strategy
1. Strengthening the Product Portfolio
It is our Company’s endeavor to constantly develop new products to cater to our customers
requirements both within its traditional product framework as well as for new specialty and value-
added products.
Our marketing team provides regular inputs to the R&D team regarding customer requirements in
order to introduce new products to meet customer needs. Currently we intend to increase our
presence in the passenger car – petrol, diesel (new generation) segments with newer products and
also new products for the construction equipments with the introduction of a more comprehensive
product portfolio. Our Company also intends to expand its auto accessories product line. New
products such as long life filters are under evaluation.
In our Industrial Explosives Division, we continuously interact with our customers and being
involved in their applications make us understand opportunities for improvement in our products
such as detonators, detonating cords, boosters etc.
2. Entering into new tie ups and relationships
We have entered into an agreement with Mangalore Refineries Petro Chemicals Limited (MRPL) for
marketing Gulf brand lubricants through their fuel stations. Another important strategy is tie ups with
Original Equipment Manufacturers (“OEM”). One of the key drivers of the global lubricant business
is entering into alliances with OEM’s. Increasingly OEM’s are getting into partnerships with oil
companies for developing, manufacturing and marketing “Co-branded Oils”, which apart from
ensuring appropriate quality and performance at the final customer interface, also provides an
auxiliary revenue stream for the OEM’s by way of royalties paid by the oil companies.
We maintain strong relationships with our existing customers in the industrial explosives business as
well as mining and infrastructure business. Strong relationship with existing customers by
continuously delivering superior products and services and matching their quality standards helps us
get repeat orders. Moreover, our customers are looking for partners who would give them a total
solution in the form of service packages
.

3. Optimal mix of revenues

As mentioned earlier, our Company has three major business areas – Lubricants Division, Industrial
Explosives Division, and Mining & Infrastructure Division. Of this Lubricant currently contributes

13
the largest share of business with a share of 48.83% to the consolidated revenues as for FY ending
March 31, 2009. We have also diversified into mining and infrastructure services which contribute
20.56% of the total consolidated revenues of the company for FY ended March 2009.We intend to
focus for higher growth in our Mining and Infrastructure business given the opportunities in the
segment. We also recently forayed into realty development and would look for higher contribution of
revenues from the segment. Our Company has already received the approvals for setting up an
IT/ITES SEZ on 30 acres, to be developed at Yelahanka, Bangalore and also approval for a
Knowledge Park on 100 acres at Kukatpally, Hyderabad. Our Company has entered into an option
agreement to develop these properties with Hinduja Realty Ventures Limited (HRVL) wherein,
HRVL has the right to decide whether or not to exercise the option for development rights in respect
of these properties.
Hence, as part of its growth strategy, our Company is making conscious efforts to diversify its
revenue streams and reach an optimal mix of revenues to achieve higher growth.

4. Focus on branding and visibility

Our Company recognizes the importance of branding, particularly in the lubricants business. We
intend to enhance the positioning of the Gulf brand and its visibility through multi-media
advertisements, new Customer Relationship Management (CRM) initiatives, and promotional
activities including motor sports. Our company has entered into sponsorship agreement with one of
the franchisee teams of Indian Premier League, Kings XI Punjab in order to increase brand
awareness. Expanding the existing distribution channels and prospecting for alternative channels
such as the emerging large malls and supermarkets is another strategic priority for increasing the
brand value.
In the Industrial Explosives Division and Infrastructure and Mining Division, even though a large
portion of work comes from PSU’s who focus more on pricing, we continuously strive to focus on
quality parameters and continue to make conscious effort to satisfy our customers. This strategy of
continuously focusing on quality not only helps to create a branding in front of PSU’s but also gives
us a positioning for the private clients where the focus is more on quality. Moreover, PSU’s have
also started to evaluate on quality parameters which provides us with a competitive edge

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 Company Profile

IDL Industries Limited was incorporated on April 20, 1961, under the name of “Indian Detonators
Limited”, (hereinafter referred to as “IDL”) to carry on the business of manufacturing detonators and
other explosive intermediaries in Hyderabad. We received Certificate of Commencement of
Business on July 6, 1961.IDL in the year 1963 came out with an Initial Public Offering of 15,000
Equity Shares of Rs.100 each.
In the year 1966–67, IDL allotted 45,000 equity shares, of face value Rs.100 to Atlas Chemical
Industries Inc. Pursuant to the Scheme of Arrangement in the year 1968 between Sapeic India
Limited and IDL, Atlas Chemical Industries Inc. was allotted another 5,000 equity shares which
increased its shareholding to 50% in IDL. In the year 1971 consequent upon the acquisition of Atlas
Chemical Industries Inc. by Imperial Chemical Industries Limited, the equity stake of 50% was
acquired by Dow Chemical Company to the extent of 40% and Unit Trust of India to the extent of
10%. IDL made its foray into the pharmaceutical sector pursuant to the Scheme of Amalgamation of
MIT Laboratories Limited (“MITL”) with IDL in the year 1974. On May 14, 1974, the name of our
Company was changed from IDL to IDL Chemicals Limited (“IDLCL”).
In the year 1975, Dow Chemical Company divested its stake to Nitro Nobel AB, Sweden. The
shareholding in IDLCL was held by the investment arm of Nitro Nobel AB, Sweden i.e. Nitro Noble
Investment BV, hereinafter referred to as “NN Investments BV” (“NNIBV”).
In 1978, IDLCL established a new company under the name of Astra-IDL Limited as a joint venture
with Astra Pharmaceuticals AB (“Astra AB”) of Sweden, for manufacturing bulk drugs and
formulations. IDLCL held 25.75% of the share capital of Astra-IDL Limited.
From 1981, IDLCL provided the infrastructure for two international level research organizations at
its Bangalore campus, Astra International Research Centre and IDL Nitro Nobel Basic Research
Institute (“INBRI”), for research in molecules and products for explosives, detonics, tribology and
organic chemical synthesis. Diverse industries, ranging from explosives to petroleum additives,
complex perfumery molecules and drug molecules benefited from the activities at INBRI.
In 1993, the entire shareholding of NNIBV was acquired by the Hinduja Group.
IDLCL emerged as a multi – sector conglomerate and its name was changed from “IDL Chemicals
Limited” to “IDL Industries Limited” (“IDLIL”) in the year 1995.
When the Government opened up the mining and infrastructure sectors to private participation in
1999, IDLIL identified new opportunities in these two areas based on its experience as a supplier of
explosives to projects. As a consequence, it diversified into the contracts business with organizations

15
engaged in engineering, iron and steel, coal, metals and minerals industry which required mining
consultancy and services.
In 2000, Astra AB and IDLIL mutually agreed to end their joint venture so that Astra-IDL Limited
could develop with direct techn0ological assistance from Astra AB, Sweden in line with the Astra
AB’s global strategies. Accordingly, in February 2001, IDLIL divested its entire shareholding in
Astra-IDL Limited. IDLIL continued the research and development activities in the Active
Pharmaceutical Ingredients (“API”) area at its R & D Centre at Hyderabad.
In the year 2002, Gulf Oil India Limited (erstwhile) merged with IDL Industries Limited, subsequent
to which IDL Industries Limited was renamed as Gulf Oil Corporation Limited. The merger took
effect on January 01, 2002 pursuant to an order of the High Court of Mumbai and High Court of
Andhra Pradesh. The name of IDLIL changed to “Gulf Oil Corporation Limited” pursuant to the
fresh certificate of incorporation dated August 22, 2002.
In 2004, our Company acquired the assets of an API manufacturing unit located on the outskirts of
Hyderabad, for manufacturing Penicillin and Cephalosporin antibiotics. The Company then upgraded
this facility to Current Good Manufacturing Practice standard as necessitated by requirements of the
regulated drug markets. The unit started full scale commercial operations in June 2006 after
obtaining environmental approvals.
In FY 2008, our Company decided to focus on its core business of explosives, mining and
infrastructure, lubricants and property development. Our Company divested its API manufacturing
facility which was operating as the Specialty Chemicals Division of the Company to IDL Specialty
Chemicals Limited (formerly known as IDL Agro Chemicals Limited) through a Scheme of
Arrangement before the High Court of Andhra Pradesh at Hyderabad. Simultaneously through this
Scheme of Arrangement the Agro Division of IDL Specialty Chemicals (formerly known as IDL
Agro Chemicals Limited) was demerged and merged with our Company with effect from April 01,
2008.
Information about erstwhile Gulf Oil India Limited
Gulf Oil India Limited was incorporated in the year 1993 and was jointly promoted by Ashok
Leyland Limited and Hinduja Consultancy Limited together with Gulf Oil International (Mauritius)
Inc(“GOIMI”). Gulf Oil India Limited was engaged in the business of marketing and manufacturing
of lubricants.
Through an agreement with Gulf Oil International (Mauritius) Inc. for the use of its trademarks
license and technical know how, Gulf Oil India Limited introduced a wide range of Gulf Oil
International Limited’s products into India. The same was achieved through toll-blending

16
arrangements with two manufacturing facilities in Navi Mumbai. In 1995, the Company set up its
first manufacturing plant in Silvassa.
On August 31, 1996, Gulf Oil India Limited merged with Pita Ashish Oils & Lubricants Limited, a
listed company. Subsequently, the name of the merged entity was changed from “Pita Ashish Oils &
Lubricants Limited” to “Gulf Oil India Limited” and the equity shares of Gulf Oil India Limited
were listed for trading on the BSE and NSE.
In the year 2002, Gulf Oil India Limited merged with IDL Industries Limited subsequent to which
IDL Industries Limited was renamed as Gulf Oil Corporation Limited.
VISION
To continuously improve the Human Capital for efficiency, sustainable and business leadership by
learning & development, engagement and value addition.
MISSION
• To align/Upgrade the HR Policies, Process & Systems.
• To attract, nurture, engage & retain best talent for sustainable business growth.
• To be a performance based organisation and focus on growth, profitability and
sustainability.
• To enhance employees competencies continuously by adopting best talent
management practices.
• To maintain work life balance culture.
• To establish & maintain a sustainable succession planning program.
• To establish a platform to share opinions, Ideas and concerns.
• To innovative employee engagement practices.
• To involvement of employees in CSR & EOHS Initiatives.

Details of Schemes of Amalgamation and Restructuring

1. Scheme of Amalgamation (“Scheme”) sanctioned by High Court of Andhra Pradesh at
Hyderabad on the 25th August, 1967, in the matter of Sapeic India Limited, Hyderabad
(“Transferor”) and Indian Detonators Limited, Hyderabad (now the Issuer) (“our
Company”).
Pursuant to the Scheme, all the liabilities and duties, pending proceedings and all the property,
rights and powers whatsoever of the Transferor company without any further act or deed were
transferred and vested into our Company from the closure of the business of the Transferor
company (i.e. June 30, 1966).

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As the consideration for the said transfer every member of the Transferor company, in respect
of every 20 shares of the Transferor company of Rs.10 each, Rs.5 paid, or 10 shares of the
Transferor company fully paid held by them be entitled as of right to claim an allotment to
themselves of one share in our Company of Rs.100 each credited as fully paid and our
Company were to without further application allot to such member of the Transferor company
the shares to which they would be entitled under this scheme. In the event of an odd number
of shares of Transferor company being held by any member thereof, fractional certificates
each representing 1/20th of a fully paid equity shares of our Company were to be issued to
them in respect of each such odd shares held by them.

2. Scheme of Amalgamations (“Schemes”) sanctioned by High Court of Mysore at Bangalore

on the September 7, 1973 and September 21, 1973 in the matter of Mysore Testing
Industries Laboratories Limited (“Transferor”) and Indian Detonators Limited, Hyderabad
(now the Issuer) (“our Company”).
Pursuant to the Scheme the undertaking, all the debts, liabilities and duties, pending
proceedings and all the property, rights and powers whatsoever of the Transferor company
without any further act or deed was transferred and vested into our Company with effect from
July 01, 1972.
In consideration of the transfer every member of the Transferor company, excluding our
Company (being the parent company of the Transferor company), from the effective dated
were allotted:
a) 3 equity shares of Rs.10/- each in our Company credited as fully paid in respect of every
11 equity shares of Rs.5/- each fully paid up in our Company, and
b) 3 equity shares of Rs.10/- each in our Company credited as fully paid in respect of every
22 equity shares of Rs.5/- each, on which Rs.2.50 were paid in the Transferor company.
Vide order dated September 07, 1973 the Court of Mysore held that, such of the shareholders
of the Transferee company that are not willing for shares being allotted to them in our
Company, shall be entitled to receive within three months from the date of the order, cash
value of their shared in the Transferee company whose market value is fixed at Rs.5.65 in the
case of fully paid up shares of Rs.5/- each and at Rs.2.36 in respect of the shares on which
only Rs.2.50 has been paid which is the latest quotation available from Bangalore Stock
Exchange.
3. Rehabilitation Scheme (“Scheme”) sanctioned by Board for Industries and Financial

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Reconstruction in the case no. 191/97 Re.: IDL Salzbau (India) Limited (“ISIL”) on
6ovember 09, 1999.
As per the merger scheme the entire undertaking and business of ISIL was transferred to IDL
Industries Limited (our Company) with effect from March 31, 1999. Our Company was to
issue and allot to the shareholders of ISIL, shares in our Company based on exchange ratio to
be worked out by independent Chartered Accountants. The ratio determined was 1 share of
our Company for every 25 shares of ISIL based on the report on valuation for merger. All the
employees of ISIL became the employees of our Company from the March 31, 1999 without
interrupting the services of the employees in any manner and terms and conditions of services
applicable to such employees as on March 31, 1999 that not in any way are less favorable to
them than those applicable immediately before the transfer date.
4. Scheme of Amalgamation (“Scheme”) sanctioned by High Court of Andhra Pradesh at
Hyderabad on the July 27, 2002 and High Court of Bombay on August 25, 2002, in the
matter of Gulf Oil India Limited (erstwhile) (“Transferor”) and IDL Industries Limited.
Pursuant to the above Scheme, Transferor merged with IDL Industries Limited (our
Company), subsequent to which our Company was renamed as Gulf Oil Corporation Limited.
The merger took effect on January 01, 2002 pursuant to an order of the High Court of Mumbai
and High Court of Andhra Pradesh. The name of IDLIL changed to “Gulf Oil Corporation
Limited” pursuant to the fresh certificate of incorporation dated August 22, 2002. Further the
shareholders of the Transferor company were allotted one equity share of Rs.10 each credited
as fully paid up in the capital of our Company for every two fully paid up equity shares of Rs.10
each held by them in the Transferor company.
Major Events
1961 Incorporation of Indian Detonators Limited
1963 Initial Public Offering of 15,000 equity shares with face value of Rs.100/- each at par
aggregating to Rs.15,00,000
1967 Inauguration of Safety Fuse Plant by Dr. Moraji Desai, the then Prime Minister of India
1968 Setting up of manufacturing plant in Hyderabad for the manufacture of PETN, an explosive
raw material
1970 Inauguration of the high explosives plant at Rourkela
1987 First site mixed Bulk Explosives unit with a capacity of 4500 tons in Singrauli, MadhyaPradesh
1988 Company proposed to diversify into building construction industry through an investment in
the equity shares of Coromandel Gypsum Private Limited

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1992 The name was changed to “IDL – Salzbau Limited” from “Coromandel Gypsum Limited” and
the same raised capital through initial public offering
1995 Incorporation of “IDL Finance Limited” a subsidiary company in which the Company had 51%
of shareholding
1999 IDL – Salbazu (India) Limited was merged with the Company as per the order of the Board for
Industrial and Financial Reconstruction
2000 The Company started its Contract Division
2002 IDL Finance Limited changed its nature of operation as per the directions of the RBI from a
non – banking finance company to other businesses as the company does not fulfill the requirements
as laid down in the guidelines for grant of approval by the RBI
2002 Gulf Oil India Limited merged with IDL Industries Limited with effect from January 01, 2002
pursuant to which IDL Industries Limited was renamed as Gulf Oil Corporation Limited.
2003 Voluntary delisting from the Bangalore Stock Exchange
2003 Joint Venture Agreement in Bangladesh with Oil Bangladesh Limited
2003 Sale cum development agreement with M/s. Abhishek Developers, Bangalore for its property at
Malleswaram
2004 IDL Division launched a special electronic detonator under the brand
name as “e-Det”
2005 Demerger of Building Products Division
2005 PT Gulf Oil Lubricants Indonesia became the subsidiary of the Company
2006 Lubricants division in association with Ashok Leyland launched a long drain engine oil with a
drain period of 36,000 kms.
2006 Lubricants division entered into an agreement with Indian Oil Corporation Limited for
marketing the “Gulf Car Care Product” line through their retail outlets
2007 The shares of the Company got listed on the NSE
2008 Scheme of Arrangement whereby specialty chemicals division of the Company was demerged
and merged with IDL Specialty Chemicals
Limited and the agro division of the IDL Specialty Chemicals (formerly known as IDL Agro
Chemicals Limited) was demerged and merged with the Company
The total number of members of our Company as on September 25, 2009 was 60,680.
Awards, Achievements and Certifications
 2001 “FAPCCI Award” for the best environment effort by industries located in the state

20
  2001 “Best Management Award” by the Department of Labor, Government of Andhra
Pradesh
 From 2000 – 2001 till 2002 – 2003 “Outstanding Export Performance Award” from
“Chemicals & Allied Products” Export Promotion Council, Ministry of Commerce,
Government of India 2005 Lubricant Division of the Company secured 28th rank in the
Hewitt Best Employer Survey
 2006 – 2007 Explosives division received “Best Safety Conscious Workman” award from the
Factories Department, Government of Andhra Pradesh
 2006 – 2007 “Certificate of Merit” from “Chemicals & Allied Products” by the Export
Promotion Council, Ministry of Commerce, Government of India
 2007 “Best Management Award” by the Department of Labor, Government of
Andhra Pradesh
 2007 – 2008 “Special Export Award” from CAPEXIL
 2008 “SAP – ACE Award” for the best oil and gas sector implementation –
large enterprises

PRODUCT PROFILE
Industrial Explosives Division
Industrial Explosives Division manufactures industrial explosives, detonators, explosive-bonded
metal clads and special devices used for mining, infrastructure, oil prospecting, defense and space
applications. Industrial explosives are used for several purposes like recovering coal from coal
seams, minerals from rocks, oil prospecting, tunnel making, well sinking, and metal cladding.
Explosives when subjected to a stimulus of energy undergo chemical reaction and produce high
temperatures and copious amount of gases which when properly confined in boreholes drilled into
rock, can create enough energy to create fissures in the rock into which the gases expand and shatter
the rock. These have to be properly designed for different uses.
The operations of industrial explosives, blasting accessories and metal cladding are covered under
ISO 9001-2000 quality systems. Blasting accessories have been accredited with “CE Certification
Marking”required by many countries in South East Asia and Middle East.

Products

21
The Industrial Explosives Division manufactures, industrial explosives (including cartridged and
bulk explosives), detonators, detonating fuses and boosters. Besides producing the various types of
products as mentioned, our Company also provides metal cladding services through which
explosively bonded metal composites used in chemical space, nuclear and hydrocarbon industries are
produced.

Two types of industrial explosives are manufactured by our Company –

(i) Bulk explosives
(ii) Cartridged explosives;

(i) Bulk explosives are produced at the mines in which blasting is to be undertaken. Our Company
prepares the necessary intermediates in its factories and the intermediates are sent to the blast site in
special trucks, where they are mixed together. The principal use of these products is in the open cast
mining sector.
(ii) Cartridged explosives are pre-packaged explosives which come packed in a plastic casing.
Cartridged explosives are used principally in the underground mining sector or for secondary
blasting.
Detonators
Detonators are devices such as a fuse or percussion cap which are used to trigger explosives.
Detonators are often attached to a timer to ensure that the explosion takes place at the desired time,
or when the person laying the explosives has reached a safe distance from the blast. Our Company
manufactures 4 types of detonators: (i) plain detonators, (ii) electric detonators, (iii) non-electric
detonators and (iv)electronic detonators.
(i) Plain detonators also known as ordinary detonators are the simplest among detonators. These
detonators when used in conjunction with safety fuses are safe and effective for use in work sites
where there are potential static hazards such as work sites near high power transmission lines and for
well sinking. It is also suitable for the blasting works in coal mines where there are no damps or coal
dust, or in an open pit.
(ii) Electric detonators, as the name suggests, are fired using electric energy supplied to the detonator
through battery, AC Mains or an Exploder (Blasting Machine) which generates DC energy. These
detonators offer a reliable means of controlled, simultaneous initiation of an explosive charge.
(iii) “Non-electric detonator" means a detonator that does not require the use of electric energy to
function. They are initiated by crimping a fuse into their open top. When the fuse burns down to the

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layer of first-fire compound in the detonator, this layer deflagrates and sets off the primary explosive.
They are most commonly initiated using safety fuse, and used in non time-critical detonations.
(iv) Electronic detonators are accurate and simple to use detonators,
with programmed delay intervals. In case of electronic detonators the conventional delay
element is replaced by a digital circuit which imparts very accurate delay to firing time of
detonators. The circuit can be ‘programmed’ to fire at the desired time interval,
commensurate to blasting requirements at site. Electronic detonators are ideal for all
surface and below ground blasting applications.

Detonating Fuse
Detonating fuse also known as detonating cord is a thin flexible tube with an explosive core. They
are used for setting off explosive charges and are formed as lengths of packed explosive powder or
crystals surrounded by a sheath or covering, such as nylon or rubber that contains the explosive
powder. It is a high-speed fuse which explodes, rather than burns, and is suitable for detonating high
explosives usually Pentaerythritol Tetranitrate (PETN). It is used to reliably and inexpensively chain
together multiple explosive charges. The detonating cord is supplied on a reel and cut to usable
lengths.
Boosters
Boosters manufactured by our Company are high detonation pressure explosives and are sensitive to
initiation by caps and detonating cords. Pentolite boosters have the advantage of being less sensitive
toshock and friction than dynamite boosters.

EMULSION BOOST SET SUPERDYNE CHUB SET SUPERDYNE PAPER TUBE SET SUPERDYNE 25MM
BMT

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SUPERDYNE 25MM PAPER TUBE SUPERDYNE 32Mm Tube

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 ORGANISATION STRUCTURE
BASIS OF DEPARTMENTATION

GOCL is a manufacturing concern of moderately large size. We can see here functions wise
departmentation. It facilitates effective utilization of manpower and resources and it is a simple,
economical and reasonable organization pattern.

LEVELS OF ORGANISATION

The organization of GOCL consists of 4 levels, they are

 TOP LEVEL consisting of and M.D

 SECOND LEVEL consisting of Directors of Finance and Special officers
 THIRD LEVEL consisting of senior managers, deputy managers and officers.
 FOURTH LEVEL consisting of clerks, Assistants and Attendees.

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FUNCTIONAL DEPARTMENTS

• Marketing

• Accounting

• Materials Departments

• Research and development

• Exports

• Legal department

• Secretarial Department

• Project Engineering Department

• Financing

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 • Transport department

• Human Resouce Department

• Agro & Building Products Division

• Production Department

• Chemical Filling Unit

• Medical Facility

• Metal Cladding

• Safety Department

• Quality Control Department

HUMAN RESOURCE DEPARTMENT:

Luther Gulick highlighted “POSDCORB” which stands for planning organizing, staffing, Directing,
Coordinating, Reporting & Budgeting is the part of personnel management. Personnel
management performs lot of function in GOCL

1. Recruitment

2. Implementing.

3. Training

4. Cordial relationship of Industry

5. Disciplinary matters

6. Performance appraisal

HRM Policy & Man Power Planning:

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HRM policy firmly believes in induction, orientation, training and performance appraisal, PPRD,
individual rating, up-gradation of knowledge and skills for achieving technological change, cost
reduction, targeted reduction with reciprocate profit motive and shared challenging aims of the
organization.

The policy believes in give and take reciprocation, punishment and reward promotion for long
service, education and skills and for timely action with integrity and dignity of human value.

Manpower planning:

This includes forecasting, planning, inventorying man power resources depending upon the
technology adopted, capacity of the production unit, layout of the plant, building and machinery,
time and motion studies, skill of the workman, job responsibility, role analysis and work load, raw
material supply, marketing and turnover.

KEY FUNCTIONS OF THE HRD:

1) Recruitment and Selection

2) Training and Development
3) Promotion and Transfer
4) Wages and salary administration
5) Performance Appraisal
6) Industrial Relations
7) Disciplinary Action and
8) Welfare Measures
Cordial relation with Trade unions:

GOCL is trying its level best to ensure healthy & cordial relation with trade unions in all matters
regarding industrial disputes & employee satisfaction.Personnel management is act as a mother as it
ensures people are treated perfectly well & widening the scope of the employees.

FRINGE BENEFITS PAYABLE TO THE UNIONIZED CADRES

EMPLOYEES:

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Shift Allowance: There are three shifts and one general shift. The office hour is from 9.30am –
5.30pm. The shift timings are as follows:

First Shift 5.30am to 2.30pm

Second Shift 2.30pm to 10.00pm

Third Shift 8.30pm to 5.30am

The lunch time is from 12.00pm to 12.30pm. Every Sunday is rest day for the employees. To act as
catalyst for GOCL LTD employee’s commitment and achievement through our core values.

• 1-C-Customer Focus: Respect the expectation of customers to maintain a healthy

Satisfaction.
• 2-C-Commitment: High Passion, Dedication, Sincerity & Result Orientation.
• 3-C-Creativity: Facilitate ideation & self-drive for innovation among employees.
• 4-C-Collaboration: Inter Department alignment, foster team work and tolerance for Critique.
• 5-C-Competency: Learn, Unlearn & Re-Learn, growth of self & Others.
• 6-C-Community: Contribute to the society & environment for better tomorrow by CSR &
EOHS Initiatives.
PRODUCTION DEPARTMENT

In IDL production department is headed by Mr.Subroy, who looks after all the stages

of production. this department is divided into Shell manufacturing unit, Fuse manufacturing unit,
Chemical filling unit ,Crimping unit

Stages in shell manufacturing unit

1. Cupping
2. Washing
3. Annealing
4. Cleaning
5. Zinc plating
6. Drawing
7. First Precleaning

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 8. Second precleaning
9. Pacification

Operation Process of Electric Detonator

FINANCE DEPARTMENT

It is the life blood of every organization. It is concerned with managerial decision making. This
department is concerned with proper utilization of cash. It identifies the source of finance where to
borrow

It has abundant of function which can be enumerated as follows:

 Effective funds management which is inverted in beneficial projects.

 Decision making regarding fixing of cash account.
 Obtaining trade credit.
 Profit Maximization.
 Wealth Maximization.
 Preparation of cash budgets.

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  Systematic approach to working capital management.
 Pricing of raw materials & valuation of stores.
 To protect financial interest of the company.

MAINTENANCE DEPARTMENT:

Effective maintenance is the goal of the company. The areas of maintenance are:

 Mechanical Maintenance
 Electrical Maintenance
 Civil Maintenance

Proper maintenance results to:

 Reduction of overload
 Cost Reduction
 Greater Safety of equipment & workers
 Delivery schedule is maintained.
 This department contributes also working progress of the company.

MATERIALS DEPARTMENT:

Materials are obtained at right time, right quality at right place from right source &at right cost
which leads smooth flow of production.

Objectives:

 Maintaining continuity of flow of materials

 Effective control of inventories

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  Coordination
 Growth of the organization
 Maintaining ethical organization
Raw Materials
 The principal raw material for industrial explosives is ammonium nitrate, constituting
major portion of the total raw material costs related to the division. The division
sources ammonium nitrate from a
 number of domestic and international suppliers. Besides ammonium nitrate other
major raw materials used by the division are diesel oil, furnace oil, sodium nitrate,
aluminum strips, brass strips, antimony tri sulphide, lead chromate, nitric acid and
acetone. Most of these raw materials are available indigenously.
Utilities
 Electricity and water are the two major utility used by our facilities. Electricity is
sourced from various State Electricity Boards and our Company also has back up
arrangements for electricity through gensets in case of load shedding or power failure.
We also have four wind mills with a total capacity of 1 MW. The electricity produced
by these wind mills is meant for captive consumption at our Hyderabad plant. We have
signed a wind power wheeling agreement with Andhra Pradesh State
 Electricity Board for use of grid transmission lines to transmit electricity. Besides,
water is procured from our borewell.

MANAGEMENT INFORMATION SYSTEM DEPARTMENT

Systems department in IDL is divided into

1. CORPORTE SYSTEMS DIVISION.

2. UNIT SYSTEMS DIVISION.

Total 5 software Systems in GOCL

1. DMS –Data management systems

2. FMS-Factory management systems

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 3. ACS-Acconts Control System
4. HR –PAY –Human resource Package
5. Shares Accounting Systems

INVENTORY CONTROL SYSTEM:

STORES DEPARTMENT:

GOCL has well- managed stores department for each of the three divisions viz, soaps, detergent &
fatty acid division in the factory, there are separate miscellaneous stores department for raw material,
finished goods and tools.

Objectives

 Assuring the availability of raw material at right quantity.

 Maintenance of economical and uninterrupted flow of production activities and finally to
ensure minimum blockage.
 Achieving maximum efficiency in production and sales with least investment in inventory.

Other departments were Metal cladding Department ,Production , engineering

Department

Metal Cladding

Metal cladding is a process where two metals are metallurgical welded together by harnessing the
energy released by explosives to form composite clad plates, harden metals, compact powders, etc.
The process is very versatile as most of the common metals can be clad. The resulting plates are used
for fabrication of process equipment such as pressure vessels and heat exchangers.
Clients
PSU’s are our main customers, for our industrial explosives division. However, the division also
works in the non-coal sector, including the metals mining, limestone, civil, infrastructure and defense
sectors.

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Apart from the domestic market, our Company exports its products to other countries in South East
Asia and Middle East. The table below outlines the export performance of the division;
Total sales 25102.67 18932.42 14868.70
Export Realization 4040 2672 1625
Share of total sales 16.09% 14.10% 12.37%

Facilities
Our Company’s principal facilities include eight manufacturing plants across locations at Hyderabad
(Andhra Pradesh), Rourkela (Orissa), Singrouli (Madhya Pradesh), Udaipur (Rajasthan), Rajarappa
(Jharkhand), Dhanbad, (Bihar), Korba (Chattisgarh) and Godavarikani (Andhra Pradesh). Besides
these eight manufacturing locations we have seven support bulk units are located at Talcher (Orissa),
Barbil (Orissa), Navamundi (Orissa), Rajmahal (Bihar),Bishrampur (Madhya Pradesh), Chandrapur
(Maharashtra) and Manuguru (Andhra Pradesh). These support bulk units are basically storage
facilities situated near the mines where bulk explosives manufactured in various locations as
mentioned above are transported & stored and supplied to mine locations of the client as per their
order.

Sales and Marketing

Domestic sales are conducted through a sales network with regional sales offices in Kolkata,
Asansol, Dhanbad, Ranchi, Singrauli, Rourkela, Udaipur, Nagpur, Bilaspur, Chandigarh,
Ramagundam and Pune. Our Company has also established marketing and service outlets at 23
strategic locations to cater to its clients in the coal, non-coal and construction sectors with 37
marketing and service personnel located at these outlets to meet the needs of clients with regard to
products and services. The sales organization is structured along a Region – Industry matrix. The
nature of the product requires a constant interface of service and support with the public sector
customers who account for major part of the domestic business.
At the corporate headquarters in Hyderabad, the application services department provides support to
the field marketing and service personnel by providing its expertise. The expertise of scientists from
our Company’s Research and Development facility is also available to our Company’s platinum
clients wherever needed.
Basically, the sales and distribution is affected through four channels:
(i) For Packaged Explosives and Accessories: Institutional business

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a. Direct selling through tenders / rate contracts and delivery through hired explosive vans either ex-
factory or from owned, hired, leased magazines, (licensed godowns) located across the country
b. Through consignment agents and their infrastructure of magazines and explosive vans
(ii) For Packaged Explosives and accessories: $on Institutional Business - This is handled through
carefully selected dealers located across the country. They purchase outright from our Company
and re-sell through their network of sub-dealers and also user license holders.
(iii) Bulk Explosives- This is affected directly through Bulk plants located close to customer/ user
areas. It is like carrying the factory to the customer instead of the product from factory to
customer. The explosives are delivered through Bulk Mining & Delivery (BMD) vehicles.
(iv) Export- This effected mainly through distributor / agency network for different major regions
such as South East Asia, Middle East, Europe and Africa. Deliveries are mainly through sea
route since airfreight is not allowed under Indian law. All exports through sea route are through
Mumbai port. Small quantities are exported through land route to Nepal, Bhutan, Bangladesh etc.
Competition
The industrial explosives industry in India is characterized by intense competition and low entry
barriers both in terms of capital and technology. There are currently few large players and many
other smaller players in India, who produce in small quantities.
A liberal licensing policy and low barriers to entry, both in terms of technology and capital, has led
to the growth in the number of suppliers. Many of the small suppliers are able to supply in small
quantities without investment in research and development or extensive infrastructure, and, with a
significantly lower cost base, are able to achieve profitability at much lower sales levels than those
required by the company and its larger competitors.
Manufacturing Process
Our Company manufactures four broad categories of products – i) Explosives ii) Detonators iii)
Detonating Fuse and iv) Boosters. Manufacturing processes of these products is outlined below;
(i) Explosives
The basic process of manufacturing explosives comprises mixing the oxidizer (comprising of
ammonium nitrate/sodium nitrate/calcium nitrate and water) and fuel (diesel/furnace oil/waxes /
sorbitan monooleate) in a turbine mixer to form a coarse emulsion and then refining the same by
pumping through a manifold of static mixers to obtain the desired viscosity.
Once the coarse emulsion is ready and refined, depending on whether it has to be in bulk form or
cartridge form further process is carried out. In case of bulk the emulsion matrix is transported in
tankers to sites where no manufacturing facility exists or pumped directly into the bulk delivery

35
system. The bulk delivery system is provided with bins to hold emulsion matrix, sensitizing
solution and in some cases, a bin for ammonium nitrate prills. As the matrix is pumped through a
hose down the borehole, it is sensitized to reduce the density to the desired levels and is then ready
to be blasted. In case of cartridge explosives oxidizer and fuel are mixed with ribbon blenders
along with sensitizers and then casing them.

(ii) Detonators
The initial step in manufacturing detonators involves getting the aluminum shells ready. These
aluminum shells are either outsourced from outside or prepared in house with aluminum strip or rod
by extrusion process. Once the aluminum shells are ready these are filled with PETN and ASA. The
filled shells are then taken to crimping plant where the soldered wire with fuse head is crimped by
placing inside the shell and checked for continuity of circuit on line before being packed in required
numbers in paper packets which are packed into boxes and dispatched to the storage magazines.
(iii) Detonating Fuse
For manufacturing Detonating Fuse, dry PETN is allowed to flow through a funnel into an
encapsulating unit around a center-yarn surrounded by polyester. This tube is then passed through
several dyes where it gets wrapped with polypropylene yarns in clock wise and anti-clockwise
directions. This semi fuse is then water proofed by PVC coating by extruding through a dye and
after inspection on a giant wheel subjected to crushing (to improve explosive properties) and then
packed onto wooden reels which are then packed in reels.
(iv) Boosters
Boosters are made by first melting Trinitro Toluene (TNT) and PETN in a pot and then pouring
the molten mix into plastic sleeves of different capacities viz, 100gm/250 gm/400 gm. These are
then allowed to cool and then packed into cases and dispatched to the magazines.

Research & Development

The Industrial Explosives Division has a well-equipped and well-staffed Research & Development
(R&D) facility in our headquarter at Kukatpally, Hyderabad to conduct research in explosives,
explosives initiation devices and blasting techniques. Modern technology is also used to cope with
facilities like explosive bunkers, electron microscopes and Nuclear Magnetic Resonance (NMR)
Spectroscopy. The R&D group is staffed by scientists and other qualified personnel researching on
rock breakage phenomena and explosives.

36
In-house research at the R&D facility has succeeded in developing new products to meet customer
demands and in obtaining a large number of explosives related patents. The R&D facility has also
been able to commercialize several products for defence and space applications, explosive clad metal
plates for chemical industries and ship building and electronically programmable detonators used for
precision blasting in mines.
The R & D centre at Kukatpally, Hyderabad is engaged in development of special purpose industrial
explosives, precision initiation devices for industrial use, and use in the defence, space and
infrastructure sectors, and research in intermediates. The Hyderabad R&D centre has developed low
weight emulsion boosters, new underground coal mining explosives and special explosives required
food oil exploration. Newly developed electronic detonators were approved by the Director General
of Mines Safety after controlled field trials.
Mining and Infrastructure Division
In order to leverage our expertise in the Industrial Explosives Division and given government’s huge
thrust on increasing coal production to meet the demands for additional power generation we have
diversified into providing mining and infrastructure services. The Mining and Infrastructure Division
is into providing mining services in both coal and non-coal sectors. Our Company undertakes mining
work related to removal of overburden in the coal mines as well as providing civil construction
services for development of infrastructure related to coal mines such as roads, buildings etc. We also
undertake work in metal mining where we are involved in extraction of ores such as iron ore,
manganese, limestone and bauxite. Besides mining services, we have also diversified into providing
civil construction services for the infrastructure in areas such as tunneling, roads and buildings.
Services
The services provided by our Mining and Infrastructure Division could be categorized into three
broad headings (i) mining services in the coal sector (ii) mining services to non-coal sector mainly in
the metals (iii) civil construction services in the infrastructure sector

Clients
PSU’s are our major customer in the coal segment of our business. In the non- coal segment, our
customers include both state owned companies as well as private companies having metal mines.

Competition
We face competition from various domestic entities in the mining and construction, as most of the
contracts awarded by the central and state Government and/or its undertakings, are awarded on a

37
competitive bidding basis. While service quality, technological capacity and performance, health and
safety records and personnel, as well as reputation and experience, are important considerations in
client decisions, price is a major factor in most tender awards. Our ability to bid for and win
contracts for excavation and raising of minerals and services for infrastructure projects is dependent
on our ability to demonstrate experience in executing large projects and strong engineering
capabilities in executing technically complex projects

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 SWOT ANALYSIS

STRENGTHS
• Domestic markets
• Experienced business units
• Skilled workforce
• Barriers of market entry

WEAKNESS
• High investments in research and development
• Future profitability

OPPORTUNITIES
• Growing demand
• Growth rates and profitability
• Global markets
• Growing economy

THREATS
• Growing competition and lower profitability
• Government regulations
• Geographical location

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 FINDINGS, RECOMMENDATIONS & CONCLUSION

FINDINGS:

 The company is under utilizing its capacity.

 Its production is based on old technology, which leads to more wastes in the production
process.
 Cleanliness in canteen.
 Safety measures in the organisation need more attention.
 Lockers must be provided to workers

CONCLUSION:

The study indicate that the positive aspect is that the company insist on good labour relation and
works for good harmony within the organisation. More than earning profit the company concentrates
on many other aspects that it needs to survive the competition in the market. Employee motivation is
most required in the organisation Many employees require motivation to achieve productivity.
Company provides its employees with social and cultural programs that are very much needed for
the employees.

The company has an effective human resource department where in the employees are given good
remuneration, incentives and extensive care is taken by providing facilities such as canteen, medical
facilities, and extracurricular activities.

The organization has excellent communication system as the organization’s short term and long-term
goals are communicated to the employees on regular basis.

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 BIBLIOGRAPHY

SOURCES :-

GOCL – Company Brochure ;

Annual reports GOCL;

Marketing Management , Philip Kotler;

Human Resource Management ,Ashwatappa .

WEB SITES:

www.IDLindustries ltd.com;

www.gocl.com;

www.wikipedia.com.

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