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March 23, 2018 | Author: chintuin_75747494 | Category: Fertilizer, Banks, Agriculture, Fertiliser, Chemicals


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CERTIFICATEThis is to certify that this REPORT ON ORGAINSATIONAL STUDY AT FERTILISERS AND CHEMICALS TRAVANCORE LTD. is a bonafide study of Chintu Francis of the third Semester MBA student of St. Teresa’s School of Management Studies at the Mahatma Gandhi University Place: Ernakulam Date: Mrs. DEEPA VENKAT Faculty DECLARATION This is to declare that the Organization Study Report on Fertilizers And Chemicals Travancore Limited, Udyogamandal is a bonafide record of the work done by me under the guidance of Mrs. DEEPA VENKAT in partial fulfillment of the requirements for the award of the Degree of Master of Business Administration of Mahatma Gandhi University, Kottayam, Kerala and that no part of this report was submitted earlier for the award of Degree, Diploma or Title. Place: ERNAKULAM Date: 27/08/2012 CHINTU FRANCIS ACKNOWLEDGEMENT I would like to acknowledge my profound sense of gratitude to the Almighty for giving me strength and ability to successfully complete the study and make this report on time. I would like to express my heartfelt gratitude to Rev. Sister AVITA Director, School of Management and Business Studies, for permitting me to undergo this program. I also extend my sincere gratitude to Mrs. DEEPA VENKAT, faculty,of School of Management and Business Studies my guide of this study, who guided me with his valuable suggestions. He was a source of inspiration for me to complete the study and make this report on time and was instrumental in shaping this report. I wish to express our gratitude to Mr. Joy Ukkan, Training Manager, FACT, for granting us the permission to do our organization study in the company. I also express my thanks to Mr.Anilkumar Raghavan AO (Doc), managers, staffs & employees who cooperated with me to complete our organization study successfully. I extend my token of love to all my friends for their support and encouragement for the successful completion of this project. CHINTU FRANCI CHAPTER 1 – INTRODUCTION . The structure is very important for its proper functioning and growth. give suggestions to sort these issues that would help the future managers to face the challenges ahead. Organization as a structure refers to the network of relationships among individuals and position in an organization. It provides the students the opportunity to know. In the modern world of tough competition and rivalry among the companies it has become necessary that one should be able to understand each and every aspect of the functioning of the organization than only concentrating on his work alone. INTRODUCTION Organization Study is the systematic study and careful application of knowledge about how people as individuals and as groups-act within Organization. An Organizational Study encompasses the study of organizations from multiple viewpoints method. The rapid changes in the fields of science and technology have brought many changes in the organizational system. and level of analysis. vision & mission. An organizational study includes the structure and functioning of every organization. It is a blue print of how management will take the various activities and function to be performed. communication pattern etc. its organization structure. collect and analyze the nature and mission.1. Organization structure is the structured frame work within which the efforts of different people are coordinated related to each other. learn. . It also enables us to explore issues and problems in an organization. The chief objective of the study is to understand the working of various department functions during a particular period and the concept of organization. observe. Such changes become inevitable to achieve the basic objective of the firm. Through the study we will get awareness about the functioning of the organization. SCOPE OF THE STUDY Study covers overall functioning of FACT. To understand in detail about the overall working of the organization 2. REASON FOR SELECTING THE COMPANY FACT is not merely one of the biggest fertilizers and chemical companies in India. . As a result it is a perfect place to study the various functions and responsibilities of an organization. Study is mainly based upon the nature of work carried out by each department.1. More over it is a central Government organization which helped us to observe how government is managing the company. There is much scope in FACT for organization study because they have more than 15 major and minor departments. To study the organizational structure of the company 4.3. Udyogamandal to achieve the following objectives 1. Entire operation of the organization is analysed with the data available. but it is the triumph of public sector companies and has established itself as a great enterprise. To understand the manufacturing process of the company 1. OBJECTIVES OF THE STUDY The organizational study was done at FACT. To study about different departments & it’s functioning 3. 1.1. It is a giant reputed multidivisional or multifunction organisation employing around 3139 employees. The organization structure and working conditions in FACT definitely helped us to understand how a big organization is functioning.2. Plant visit (b) SECONDARY DATA COLLECTION 1.4. . Annual report 5. Interaction with different managers. Almost all the plants in Udyogamandal division and Petrochemical division were under maintenance and tight security hence detailed study regarding the plants cannot be made. departmental heads etc 2. METHODOLOGY OF THE STUDY (a) PRIMARY DATA COLLECTION 1. Past records from library 4.1. FACT diary 1. Website of FACT 3. Company manuals 2. Direct observation 3. Time constraints is a major limiting factor 2.5. LIMITATIONS OF THE STUDY 1. CHAPTER 2 – INDUSTRY PROFILE . Fertilizer is generally defined as “any material. Chemical fertilizers are divided into three groups of Nutrient elements. oxygen and hydrogen are supplies by air and water and are.1. organic or inorganic. . The main aim of the industry is to provide the primary and secondary nutrients which are required in macro quantities. carbon. highly developed manufacturing technologies are employed in the production of fertilizers. Sixteen elements are identified as essential elements for the plant growth. Of the 16 elements. The significant challenge being faced by the Indian fertilizer industry is the volatility of the prices of feed stock and raw materials and limited availability in international market. not treated as nutrients by the fertilizer industry. on physical properties. The cost of feed stock and raw material constitute a large part of the total cost of production of fertilizers. Phosphorous and Potassium. which supplies one or more of the chemicals required for the plant growth”. Growth and development of fertilizer industry is playing an important role in the growth of the economy as a whole.2. PROFILE OF FERTILIZER INDUSTRY India is the third largest manufacturer of nitrogenous and phosphatic fertilizers in the world. They are Nitrogen. therefore. Quality control during production focuses on the declared nutrient content of the products and. in case of solid fertilizers. and the production plants are capital intensive. The Government has played and continued to play an important role in ensuring the availability of feed stock and raw materials at a reasonable price. of which nine are required in macro quantities and seven in micro quantities. natural or synthetic. Although the components of finished fertilizer products are relatively simple chemicals. The Indian fertilizer industry provides a vital input for agriculture ensuring self reliance in food grain production and food security of the nation. The production process varies in accordance with the nutrients produced. Dried blood and fish were employed long before the chemistry of soil and crops was understood. Other leading producers include China. Industry in the European Union is governed by a wide number of manufacturing regulations. conditions for the safe storage and transportation of manufactured fertilizer material and intermediates. Regulations pertaining to the fertilizer industry cover the health and safety of employees and general public. and the treatment and disposal of waste products resulting from the production of fertilizer or fertilizer intermediates.2. The disappearance of frontiers combined with improvements in the technology of fertilizer manufacture and more effective transportation led to a growing role of fertilizers for producing the needed food and fibre. Canada. limits on noise levels. both by improving the efficiency of those processes and by abating emissions. . Phosphate or Potash intermediates and products. wood ash from burning the fallen trees. France and India. INTERNATIONAL SCENARIO The use of manure and compost is probably as agriculture itself and many other materials such as ground bones. limits on emissions to the atmosphere and water [fresh and marine]. All fertilizer manufactures in the European Union strive to minimize the environmental impact of their manufacturing processes. World's leading fertilizer producers are Russia and United states.2. The fertilizer industry in United States is organized into separate segments for producing and marketing Nitrogen. Adoption of new and improved technology and development and utilization of alternate and cheaper . Co-operative Societies like IFFCO. The fertilizer sector by enhancing the agricultural productivity has in turn resulted in providing major support to the farmers who are primarily dependent on agriculture. KRIBHCO and units from Private sector. Fertilizer has also played a pivotal role in Indian’s food security.5% in recent years.[FACT] at Cochin in Kerala and the Fertilizer Corporation of India [FCI] in Sindri in Bihar [now Jharkhand]were the first large sized – fertilizer plants set up in forties and fifties with a view to establish an industrial base to achieve self-sufficiency in food grains. large working capital requirements. long credit period enjoyed by the buyer and the constant clamor of environmentalist lobby for slashing the use of chemical pesticides and fertilizers. Indian agriculture has witnessed a low rate of growth of around 1. The fertilizer industry of India had made constructive use of the fertilizer subsidy provided by the government of India to ensure that the country achieved reasonable self.2.the Government owned Public undertakings. green revolution in late sixties gave an impetus to the growth of Fertilizer industry in India. Subsequently. The fertilizer industry in India consists of three major players.sufficiency in food grain production. when the first manufacturing unit of Single Super phosphate [SSP] was set up in Ranipet near Chennai with an annual capacity of 6000 MT.3 NATIONAL SCENARIO The Indian fertilizer industry has helped in the growth of the Indian economy. The Fertilizers and Chemicals Travancore of India Ltd. The seventies and eighties then witnessed significant additions to the fertilizer production capacity. Low and unbalanced use of fertilizer could be the major cause for this. The Industry had a very humble beginning in 1906.economic objectives related to agricultural sector and to provide other services. The fertilizer industry has organized itself through Fertilizer Association of India [FAI] to coordinate with the Government of India to achieve the macro. There are about 33 major producers producing N and NP/NPK fertilizers in the country at present. The problem of Industry are the seasonal demand for its product. The production and cultivation of rice is decreasing and the farmers are attached to commercial crops like rubber and coconut.4.sources of feedstock coupled with education and awareness creation among farmers on balanced use of fertilizers are essential to correct the situation. The state’s agricultural productivity is decreasing year by year. 2. STATE SCENARIO Kerala has high degree of land use. In the per hectare consumption of fertilizers among different states in India. the position of Kerala is one of the low ranking states . Due to decrease in the cultivation of rice. This overdependence and high volatility of prices of feed stock are major issues confronting the industry. Fertilizer Industry in India is almost solely dependent on imported raw materials like Rock Phosphate and Sulphur and intermediate products like Phosphate and complex fertilizers. the consumption of nitrate and potash has come down. CHAPTER 3 – COMPANY PROFILE . The 1940s were a time of critical food storage in our country. The traditional approach to cultivation was not of much help in finding a solution to this problem. Since then it has plated a major role in creating fertilizer consciousness among our farmers. the Divan of Travancore. innovation and adventure. one of the most popular industrialists at that time for making a fertilizers company.P. the plant at Udyogamandal went into commercial production in 1947. And that. The new venture of course had to go through many teething troubles. And India’s first large scale fertilizer plant was set up in 1944 at Udyogamandal on the banks of the river Periyar in Eloor panchayath in the Kerala state. Shri N. But this deficiency was overcome by adopting a revolutionary method known as the FIREWOOD GASIFICATION PROCESS. the raw material necessary for the production of ammonium salts were not available in the state. there was an acute storage in the supply of food all over the world. Sir C.1. Gopalaswami was appointed as the first chairman of FACT. who mooted e idea of increasing food production by the application of fertilizer as a long term solution to food problem. Ramaswamy Aiyer. the search for a long term solution led to the introduction of fertilizer in our agricultural scenario. Ramaswamy Iyer. was indeed a revolution when it was established as the first large scale fertilizer factory in the country. It was conceived by the foresighted statesman and administrated. Hence. of course is an interesting story-a story of never ending challenges and constructive response. THE FERTILIZERS AND CHEMICAL TRAVANCORE LIMITED popularly known as FACT. It is a tale of initiative. and giving a positive direction to the modernization of agriculture in India.000 tonnes of N). During the 2nd World War.3. with the slated capacity to manufacture 50. unheard in the annuals of industrial developments in India. This was followed by the production of SUPERPHOSPHATE in a new plant with a . C.000 tonnes of Ammonium Sulphate (10.P. enterprise. he sought the help of Seshayee Brothers. And when it came. For instance. To give concrete shape to his idea. it did through the vision of Dr. HISTORY OF FACT The birth of FACT emerged out of a crisis situation that guided the enlightened perception of a far-sighted visionary. initial difficulties notwithstanding. However. . . The 2nd stage of expansion of FACT was completed in 1962. In 1979 production of NPK was commercialized. Highlights of the period were the installation of two plants to produced Phosphoric Acid & Ammonium Phosphate. A sulphuric acid plant of 75 tonnes per day also installed which was considered large going standard at that time.000 plants. the Udyogamandal Division launched its first expansion with an outlay of Rs. FACT became a Kerala State Public Sector Enterprise on 15th August 1960. . These by-products produced by FACT paved the way for setting up of other industrial units around the FACT complex viz. Indian Rare Earth Ltd.. saving a considerable amount of foreign exchange. With the licensing of Cochin Division in 1966 FACT further expanded and by 1976 the production of sulphuric acid.3 crores. The second stage of expansion involving Rs. etc. FACT has a well organised marketing network. The third stage of expansion of FACT was completed in 1965 with setting upon a new Ammonium Sulphate Plant. capable of distribution over a million tonnes of fertilizers. On 21st November 1962. Hindustan Insecticide Ltd. In the late 50s. a Kerala Government undertaking. FACT was the first to use it by-product. chlorine. FACT was the first fertilizer manufacturer in India to introduce the village adoption concepts since 1968 to improve agricultural productivity and enhance the overall socio-economic status of farmers.2 crores saw the replacement of the Firewood Gasification Process and the Electrolytic Process by the Texaco Oil Gasification Process for which a new plant was set up. In fact. phosphoric acid and Urea was started. the Government of India became the major shareholder. Meanwhile the inner dynamics of FACT was finding another expression in the formation of new unit with the help of the state Government and Methur Chemical & Industrial Corporation Ltd. FACT has been a pace-setter in marketing evolving a continuous and comprehensive package of effective communication with farmers and promotional programmes to increase the fertilizer consciousness among our farmers. This indeed was a big leap forward as it replaced all the imports of that product. for the production of caustic soda which later become today’s Travancore-Cochin Chemical Ltd. as hydrochloric acid to produce Ammonium Chloride..capacity of 44. OBJECTIVES OF THE COMPANY • • • • • • To produce and market fertilizers and Caprolactum and other products efficiently and economically. besides achieving reasonable and consistent growth. . petrochemical and a significant player in all other business including engineering /technical service providing maximum customer satisfaction. To constantly innovate and develop new products and services to satisfy customer requirements. where profit can be made on a sustainable basis over the long term. To focus on cost reduction and technology up gradation in order to become competitive in its line of business. and reasonable return to shareholders adhering to business ethics and professionalism and adequate concern for community and environment Mission of Fact To function as a dependable and globally competitive producer of fertilizer and other allied products and to develop self reliance in the field of engineering and technology. To effectively manage the resources and assets of the company to ensure a reasonable return on investment. To provide services to the farming community by organizing technical training.3. soil testing and other productivity improvement services in agriculture. oil and gas industries 3.2. VISION AND MISSION OF THE COMPANY Vision of Fact To be a market leader in fertilizer. chemicals. To invest in new business lines. petrochemical.3. especially in the field of fertilizers. Phase-I of the division saw the setting up of an integrated Ammonia urea complex utilizing Indian Engineering skills. .000 tonnes per annum Ammonium Sulphate Plant in 1947. Sulphuric acid and Phosphoric acid plant of economy scale were also set up. Co-product Ammonium Sulphate is transferred to the fertilizer plant of Udyogamandal division for processing. 30 km from Udyogamandal and adjacent to the Cochin Refineries. The latest addition to this unit was a 900 tonnes per day Ammonia Complex set up with an investment of RS 618 crores. DIVISIONS OF F. which finds extensive application in textiles.C. In the decades that followed multi stage expansion programs were undertaken bringing in the latest technologies of the day which were quickly mastered and successfully implemented. FACT Udyogamandal division is certified to ISO 14001.4.A. the product has been acknowledged as among the best in the world. Thanks to its high quality. A large scale complex fertilizer plant of 485. tyre cord and engineering products. UDYOGAMANDAL DIVISION FACT commenced operation at Udyogamandal with the commissioning of a 50.3. COCHIN DIVISION FACT Cochin Division was set up in the 1970's at Ambalamedu. the environmental system standards. III. This versatile petrochemical product is the raw material for the manufacture of nylone-6. II. PETROCHEMICAL DIVISION FACT diversified into petrochemicals in 1990 with the production of Caprolactum. Today the division is 40 year old small capacity plants and 10 year old state of the art technology plants.T I. The division is located adjacent to the Udyogamandal division.000 TPA was set up as phase-II. the Fabrication and Engineering Division of FACT was established in the year 1966. MARKETING DIVISION FACT has been a pacesetter in fertilizer marketing. Pondicherry. FACT ENGINEERING WORKS FEW. design and engineering. hydrometallurgy etc as well as petroleum storage. Tamil Nadu.IV. V. refining. 50 field storage points and over 7900 retail selling points in these states. FEDO is ISO 9001 certified. offsite facilities etc. required for the fertilizer. Karnataka and Andhra Pradesh. handling the intricacies of the technology sourcing. it developed capabilities in the manufacture of Class I Pressure Vessels. catering to a wide spectrum of industries like petrochemicals. and serves the farmers by supply of fertilizers and agronomy advice. petrochemical and petroleum industries. The division undertakes project execution on consultancy and turnkey basis. Heat Exchangers. FACT ENGINEERING & DESIGN ORGANISATION FACT Engineering & Design Organization (FEDO) was established in 1965 for utilizing the considerable indigenous plant building expertise accumulated by FACT in its process of nurturing the nascent chemical fertilizer industry. Columns. FEDO is today one of India's premier project engineering organization. FACT has created awareness about scientific cultivation and fertilizer use. The distribution network consists of 100 Agro Service Centers. Towers etc. VI. environmental engineering. hardware procurement and construction with practiced ease. Over the years. Through innovative farmer education and fertilizer promotion programs. FEW received ISO 9002 Certification in 1998. pharmaceuticals. The marketing network of FACT is spread over the southern states of Kerala. . Drinking Water supply to residents of Eloor Municipality FACT is supplying drinking water for more than 3000 households of Eloor Municipality . soil and crop specific nutrients as per the respective State Agricultural University recommendations in the form of a proprietary fertilizer mixture developed by FACT are given to the farmers. Agricultural University recommended FACTMIX is given based on soil test results. secondary and micro nutrients.3. FACT has conducted 7 such Village Adoption Programmes in Kerala. In treated plot. Tamil Nadu. micronutrients specified by the University were supplied free of cost. 10 progressive farmers having at least one acre of land. FACT has conducted 13 two day Farmer Training Programmes in all the four southern States. Field Demonstration The Field Demonstration Programme aims to demonstrate the effectiveness of correct fertilizer application at farmer level. Farmer Training Programme The farmer training programme is intended to impart training to impart training to limited group of 20-25 farmers on balanced use of fertilizers based on soil test results. The yield difference between treated plot and control plot are compared. CORPORATE RESPONSIBILITY Village Adoption Programme Under the village adoption Programme. In addition. For this one acre of plot of the farmer is divided into 2 equal cents plots-control plot and treatment plot. in a village is identified. a farmer’s application was explained to the farmers. Andhra Pradesh and Karnataka. In control plot. FACT has conducted 9 Field demonstrations during the year 2010-11. The soils of the plots are analyzed for major. During the year. Based on the soil test results.5. farmer’s practice is followed. The objectives of this programme are to create awareness on soil sampling methodology and use of balanced fertilizer based on soil test results. In addition to this. the company has conducted various competitions for spouse and children of FACT employees. Part of the treated effluent generated is used for dilution purpose in the Effluent Treatment Plant and for irrigation in Plant area. . Parliamentary Committee on Official Language has visited FACT Head Office in June 2010 and at Madurai Regional Office in January 2011. Rajabhasha Orientation Programme and Rajabhasha seminar. Pollution Control Activities Production units of FACT are certified for ISO 14001. Udyogamandal Division secured Third Place among large scale industries in making substantial and sustained effort in Pollution Control. The company is maintaining all effluent parameters within the limits as specified by the Statutory Authorities. During the year 2010-2011. During the year 2010-11. from Kerala State Pollution Control Board. Official Language Implementation Committee meetings are held regularly underthe Chairmanship of Chairman and Managing Director and the progress is reviewed in the use of Rajabhasha. which always give top most priority to ensure clean air and better living environment to the inhabitants around the factory. students of neighbouring schools. The treatment plants and emission control facilities are kept in operation along the with the parent plants throughout the year and treated liquid effluents and gases emissions discharged from plants confirmed to the standards prescribed by the Kerala State Pollution Control Board. FACT has three computerised ambient air quality monitoring stations to monitor the quality monitoring stations to monitor the quality of the air around the factory and to ensure clean environment in the locality. spoken Hindi classes.Official Language FACT continued to give top priority for the implementation of the provisions of the Official Language act and Rules and the related instructions given by Government of India. FACT has conducted Hindi workshops. students of the schools in Ernakulum Revenue District and for the employees of other Public Sector Undertakings. Company is providing incentives for encouraging employees who are doing excellent work in Hindi. During the year saplings were planted at company premises as a measure of Green-belt development. a. The payback period of this project on account of energy savings alone is just six months. The benefits of this project are the availability of Bulk quantities of Sulphuric Acid which will facilitate increasing captive production of phosphoric acid. The total cost of the revenue is expected to Rs. Sulphuric acid Storage Facility at Willington Island The company has decided to set up its own Sulphuric acid storage facility at Willington Island to enable receipt of Bulk Acid shipments of above 5000MT. The total cost of this project is Rs 12 Crore. Automation of Bagging & Wagon Loading System at Cochin Division The product handling and despatch facilities at Cochin division-NP plant is manual. d. The following are the main Short-term Projects being implemented by FACT to improve the operational efficiency and profitability. c.6 SHORT TERM STRATEGIES/PROJECTS In order to improve the efficiency of operation and profitability. It is proposed to carry out modifications in the Ammonia Plant for using cheaper LNG as feed stock and fuel for Ammonia manufacture as soon as it is available. .3. It is proposed to set up 2 storages of 8200 MT each. FACT has undertaken certain short term projects. The scheme includes automation of bagging and loading operations with high capacity automated bagging machines and wagon and truck loading machines. Feed Stock conversion of Ammonia Plant to LNG LNG is expected to be available at Kochi by end of 2012.57 Crore. at an estimated total cost of Rs 24 Crore. 45 Crore to be implemented in 2 phases. The total cost of the project is estimated as Rs 31. The project will bring an energy saving in the Ammonia. Conversion of fuel for the boilers to LNG It is also proposed to carry out modification in the 5 boilers at Udyogamandal Complex to use LNG. b. FACT has also plans to enter into the area of SSP marketing from existing SSP plants in the southern region through a tie-up with the owner of the existing plants. The DPR is being prepared by FEDO and the funding avenues including JV participation are being examined. It is proposed to prepare a DPR based data collected from the Bids received.7 LONG TERM STRATEGIES/PROJECTS a. The estimated cost of this venture is approximately Rs 66 crore. FACT intends to set up a 500 Tonnes per day SSP plant. FACT has also plans to enter into the area of SSP marketing from existing SSP plants in the southern region through a tie-up with the owner of the existing plants. A pre Feasibility report has been prepared by FACT Engineering And Design Organisation (FEDO). the Government of India has been promoting the production and marketing of SSP in the country. . b. The estimated project cost is Rs 283 Crore (including Port improvement schemes) distributed over 3 years.g. Production Marketing of SSP Taking cue from the increasing prices of DAP. 3. A New 1000TPD NP Plant FACT is considering to set up an additional NP plant of 1000 TPD capacity at Cochin Division along with the revamp of Willington Island Facilities for handling increased volumes of Raw-materials utilizing modern equipments to increase the discharge rates from shipments. New Urea Plant Udyogamandal FACT has a proposal for setting up a new Urea Plant of capacity 1500 MT per day at Udyogamandal utilising the CO2 being vented from the Ammonia Plant at a project cost of Rs 940 Crore. Bio-fertilizers.Urea.C. Ammonium Phosphate and Complex Fertilizers • • Chambal Fertilizers and Chemicals-Urea KRIBCO 4 Produces urea only. Di ammonium phosphate and intermediaries. 3. . • • • • NFL Nagarjuna Fertilizer LTD (product-urea) MFL Mangalore Fertilizer LTD. Urea. FACT is expected to sustain profitability in the coming years.8 OUTLOOK FOR THE FUTURE FACT has submitted a Financial Restructuring proposal to the Government of India. MOP. (Products –urea. JV’S for urea and phosphoric acid abroad.3. • MFL Madras fertilizer LTD (products –NPK 17:17:17 and variants Vijay Urea. complex fertilizers) RCF Rastria Chemicals Fertilizers LTD.T are the following: • SPIC Short for Southern Petrol Industrial Chemicals.9 COMPETITORS OF FACT The major competitors of F. participating in Indo Oman and Indo Iran projects for cheaper gas.A. The profitability will further improve once FACT is able to switch over from Naphtha to LNG /NG as feed stock which is expected by 2012-13. requesting assistance to tide over the interest burden and for sustainable growth of the company in the long run. (products –urea. On implementation of the financial restructuring package and new projects for expansion and. Complex Fertilizer) IFFCO Indian Farmers Fertilizers Co-operative (Product. DAP. Aim to be globally competitive and JV for hybrid seeds. modernization. Agrochemicals) Plans to switch over to LNG from naphtha and import ammonia. regulations and other requirements applicable III. Reduction of air pollution from ammonium phosphate plant II.10 ENVIRONMENTAL OBJECTIVES (EMS of FACT) I.11 ENVIRONMENTAL POLICY I. Zero effluent discharge from Sulphuric acid plant VI. Training for improved environmental management . Reduce treated effluent to river 3. Improving quality of effluents on a continuous basis III. Compliance with environmental rules. Minimize dust pollution in Sulphur handling and prevention of its spillage to river IV.3. Continual improvement in its environmental performance and prevention in pollution II. Minimize and recycle effluents from phosphate plant V. Conservation of resources and waste minimization IV. Finished products Ammonium Sulphate . PRODUCTS 4.Udyogamandal Division & Cochin Division Caprolactum .Petrochemical Division Biofertilizers .Research & Development Division .1. PRODUCT PROFILE 4.Udyogamandal Division Ammonium Phosphate / Complex fertilizers / Factamfos .1.1.4. NPK complex fertilizer .3.4. This high analysis fertilizer is found suitable for application especially in Coconut/ Rubber/ Oil Plam/ Tea Plantation.1.Udyogamandal 4.FACT markets imported Rock Phosphate containing 32% P2O5 under the brand name "Ultraphos". 20% P in water soluble form and 15% sulphur.Udyogamandal Division SO2 Gas .2. Byproducts Nitric Acid & Soda Ash . Ultraphos . a .6% N in Ammonical form and 24% sulphur.1. Intermediary Products Ammonia .Udyogamandal & Cochin Division Oleum .Udyogamandal & Cochin Division Synthesis Gas . PRODUCT MIX 4.2.Udyogamandal Division Sulphuric Acid .4.1.Udyogamandal Division & Cochin Division Carbon Dioxide Gas . 4.Udyogamandal Division 4.Petrochemical Division Ammonium Sulphate .1. Exported Products Caprolactum . Straight Fertilizers Ammonium Sulphate .Udyogamandal Division Phosphoric Acid .2.2.Petrochemical Division Gypsum .Udyogamandal & Cochin Division 4.Factamfos or Ammonium Phosphate contains 20% N in ammonical form. Complex Fertilizers Factamfos 20:20:0:15 .2. an important secondary nutrient.Containing 20. A fertilizer tonic for Roses.4.A special nutrient combination for both flowering and foliage ornamental plants.FACT has one of the largest plants in Asia and it manufactures Sulphuric acid of 98% purity. Rubber etc.96% purity. The product quality of FACT Caprolactum is among the best available in the world.2.Small qualities of these are obtained from Caprolactum plant as byproduct . Nitric Acid and Soda Ash .FACT has entered into direct import of MOP and also trading of Imported Urea.3.3. Bio fertilizer . Vegetable Mixture . Imported/ Traded products .A special blend exclusively prepared for vegetable. NPK Mixtures NPK Mixtures .FACT prepares crop specific standard mixtures for all crops in Kerala and also special NPK mixtures for plantation crops like Tea. Cardamom.secondary plant nutrient.2. Sulphuric Acid . Garden Mixture . 4. which is now attaining great importance in agriculture.FACT produces and markets 'N' fixing Bio fertilizers . Factamfos also can be used for foliar spraying.It is the raw material for Nylon-6. Azospirillium and 'P' solubilising bio fertilizer . CHEMICALS Anhydrous Ammonia .Rhizobium. 4.Phosphobactor. Rose Mixture . 4.FACT produces Ammonia of over 99. Coffee. Caprolactum . CHAPTER 5-DEPARTMENTS . This is the very department which is responsible to a great extent for the growth of the organization. Banking. billing. depends largely on its finance department. Some of the main functions of the financial departments are Payroll.1 FINANCE DEPARTMENT Director (Finance) DGM (IA) DGM (Finance) Mgr (IA) CM (Sales) CM (Costing. Cost accounting. 5. Budget) CM (Bills & Mat) CM (Gen A/C) Mgr (cash. Auditing. Budget Cash. MIS.1: Structure of Finance Department Any organization whether big or bad. Corporate Planning. Bank & Payroll) Mgr (Tax & Duties) Fig. Finance department is divided into five sections for carrying out its process. ledger and trial balance. Budget preparation. Preparation of journal.5. Preparation of financial statements & reports. bank & Payroll and Tax & duties . Financial resources & materials accounting. They are: • • • • • Bills & Materials Sales Costing. MIS. Accountability for selling and distribution of products & byproducts 2. maintenance and services. forecasting the performance and finally making a plan. providing information. Sale of tender form 2. Issue of materials to the extractors 5. 3 Bills section Bills section deals with the contract account for execution of civil works and other construction/erection. Recording the transaction 3.1. It includes: 1. Compilation of reports 5.2 SALES ACCOUNTING Some of the functions are 1.1.1 BILLS & MATERIALS The main functions are Stores accounting and Receiving. Receipts to certified bill in the specified format 6. Receipts of stores 2. Reconciliation with control accounts 6. Value adjustments 5.5.1. MIS AND BUDGET SECTION This section is concerned with ascertaining the cost of production. Dispatch and holding of bills. Returns of stores 5. Issue of stores 3. Transfer of information from depots to HO 5.3 COSTING. helping to prepare a budget. Unconsumed materials lying at site at the close of financial year 5. Security on running account bills and final bill 7. Remittance of EMD 3. Statutory procedures and formalities in works contract 2 Stores accounting Main functions of stores accounting are: 1. . Remittance of security deposit 5. Cost sheet is prepared in two ways. Products. Utilities. 6. The item in the cost sheet is compiled on the basis of process of the products or on the basis of elements of the product. organizing and controlling the major activities of the organization and initiating suitable action. Head office overheads. DM water. Consumable. Insurance. MIS Briefly consists of: 1. Administrative overheads. 2 MIS (Management Information System) To provide the management with vital facts which affects the efficient running of the business for decision making on planning. Factory overheads. One for the finance department and another for the GM’s office 2. Ammonium Sulphate.Fixed cost of a product mainly consists of conversion cost of the product of Salaries and wages (Direct.Actual and budget for the month. Intermediate products. Divisional Reports . Fixed cost . Pollution control expenses. Packing materials. 5.Two monthly reports for each division. Pollution Control. Indirect expenses are separately booked and allocated at the end of the year.Raw Materials. Plant maintenance. Gratuity and bonus. 4. Production performance of the division. P & L Account-Statement and its analysis. Steam.Direct expenses is recorded to the respective cost centre. Sulphuric Acid.Staff welfare expenses. Phosphoric acid. Depreciation. . Indirect.Major projects. Ammonium Phosphate Classification of cost • • Variable cost .1 Cost accounting Identification of the cost centre . Administration & Maintenance). 3. man hour utilization etc. CPP. Inventory position. Interest on term loans and working capital. So2/ Oleum. Specific information important for the management . Cost of production . Cost centre in Udyogamandal Division: Process water. Ammonia. the revenue budget for the current year is revised. ● Monthly report On closing of the accounts of the months a monthly P & L account is prepared for each Division and the same is send it to the Division Head. expansion of existing facilities and modification and improvements to plant and machinery resulting in i) ii) iii) iv) Increase in capacity. based on the actual from April to September and the anticipated trend for the remaining period. Reduction in cost of output is treated as capital expenditure. FD and CMD. furniture and office equipments which have reasonable life. This report would give a comparison of the actual for every month against budgeted performance.3 Budgeting Two types of budget: Revenue and Capital budget. 5. Improvement in quality of output.1.5 CASH. Two types of estimates-: Budget and revised estimate ● Revenue Budget Every year early in August detailed production targets and norms for consumption of materials for remaining portion of the current year and also for the next financial year are prepared by the head of Divisions. BANK AND PAYROLL SECTION This section is concerned more with the day to day activities and less of future forecasting & planning. Increase in useful life. . ● Budget revision While preparing the next year’s revenue budget. ● Capital Expenditure Shows all items of capital expenditure to be undertaken during the budget period like expenditure on acquisition of new assets like machinery. Receipt of cash. Preparation and disbursement of salaries and wages to managerial and nonmanagerial employees. Some of the main functions of Internal Audit Section are. 1. Income tax audit. Operational/ systems/ management audit 2. custody of cash and inter unit transfer of funds 3. 3. Cash and Bank Accounts Section The various functions include: 1. bank drafts. Cost audit. 4. Surprise verification of physical stocks .7 AUDITING Various types of audits in FACT are: Statutory audit. Payroll Section Functions of the section are: 1. 5. 5. State Bank of India.1.1. & Dena Bank. State Bank of Hyderabad. Government audit. Routine audit 5.5 TAX & DUTIES SECTION This section is concerned with calculation & payment of various taxes and duties to the Government. Maintenance of petty cash books and cash books Reconciliation of bank accounts Any other duties assigned by authorized officer 2. 4. 2. 5. and postal money orders Handling of bank deposits/withdrawals. 2. Keeps books of account for the above transaction. Proprietary audit and audit of sanctions 3. cheques. 5. Processing of various personal payments advances. Canara Bank. Bank of Baroda. Affect various recoveries through payroll and remit the same to concerned agencies. Bank of India.1. Sales tax audit and Internal audit.6 BANKERS SUPPORTING FACT: State Bank of Travancore.1. Products and Byproducts.T. Accountability for materials.S Mgr E. Procurement of Machineries. Inspection of Materials. equipment & spares. Vendor Development. They are: • • • Purchase Department Stores Department Traffic (Logistics) Department . Transportation of Raw materials. Intermediaries.2: Structure of Materials Department The functions of materials departments are. Purchase of stationary and other Equipment needed by individual department.2 MATERIALS DEPARTMENT GM Material CM Purchase RM Dy.S Fig. CM Raw Materials Mgr Stores Mgr Traffic Mgr F. • • • • • • • • Importing raw materials under the approval of safe purchase committee constituted by the Board of Directors. This materials department is divided into 3 Sub Departments. 5.S.5. Maintaining adequate raw materials needed for production.F. Schedules are formed and product is dispatched. Package items involving design.1 Purchase department The purchase procedure covers the following areas of procurement of goods and services for the company. Equipment and spares. Capital items (For project and other purposes). Contracts and Stores 5.2.2. erection and commissioning.5.2 Stores department The functions of stores department are. They maintain contacts with market department and production departments. Purchase Department is again divided into 3 sections.3 Traffic (logistics) department Traffic department is responsible for the dispatch of products to various markets. Raw material & Intermediary materials 5. 3. The dispatch section of marketing division gives the demand of various depots in each state to the traffic department. 1. supply. • • • • • Receiving Holding Inventory Control Issuing Disposal 5. They are: • • • Raw materials Equipment spares and supplies FEDO & FEW Transport. . 2. Based on this.2. In the event of any change in the raw material. The production and consumption ratios for the previous years are duly considered.5. Production planning department receives data from all the plant and other interfacing departments and compiles them. The production targets thus fixed are presented to the corporate office for review and approval by CMD. the plant managers are informed the same.3 PRODUCTION DEPARTMENT JGM (UD) CM (Production) MAINTENANCE PRODUCTION C.3: Structure of Production Department Annual production target for the next year are prepared based on installed production capacity of the plant and production data for the previous year. Necessary feedback is also taken from marketing while fixing the production targets. 5. Based on the production plan.S.P Ammonia Ammonium Sulphate Caprolactum Phosphoric Acid Ammonium Phosphate Sulphuric Acid Fig.are sent to the management . purchase department initiates action for procuring raw materials. All the data’s are complied to form the production budget. monthly reports and yearly reports. requirements are intimated to the purchase department. This production budget then acts as the basis for further performance monitoring. Various MIS reportsdaily production reports.E C.M. 5. The investment for the plant was about Rs. Phosphoric acid plant 4. Maintenance of plants. The plant is based on the double conversion.Hydrogen is obtained from Naptha (which is acquired through pipe line from BPCL). Ammonia plant 2. 5. Various sections in production planning are. It supplies sulphuric acid to the petrochemical division for the production of sulphur dioxide. Complex fertilizer plant 5. Monitoring actual production & checking any deviation.There is also a captive plant which enables continuous power supply. This produces 200 tonnes of oleum and 500 tonnes of sulphuric acid. Sulphuric acid plant 3. Petrochemical division 5.1 Ammonia plant The capacity of the Ammonia plant is 900 TPD.3. Submitting Plan to govt. The plant designed by FEDO in collaboration with Messer society de prayon of Belgium employs the prayon convertible process to give a product having .3. and getting approval. double absorption process and was designed by FEDO in collaboration with Davy power gas Plant.3. 1. planning daily production according to annual target.3 Phosphoric acid plant The Phosphoric acid plant is designed to produce 360 TPD of P205 through the dehydrate route.The functions of production department are.618 Crores. making revision plans according to actual production.2 Sulphuric acid plant The Sulphuric acid plant is designed to produce 1000 TPD of monohydrate. The main raw materials required are hydrogen and nitrogen . The plant has economy scale size and employs state of Art technology for the process engineering and control systems. high flexibility.25000 TPA of ammonium sulphate as co-product. 5.3. 5. 28:28:0. Caprolactam is a popular monomer of the versatile Nylon-6 polyamide. But due to the scarcity of raw material rock phosphate. biological and chemical stability. inc. Davy designed the plant power gas. FACT Caprolactam is available in 25 kg packed in multilayer bag.3. FACT PD was certified to ISO 9002 (1995) and ISO 15001(1996). Products from these plants are used for the production of Caprolactam and Ammonium sulphate .11:12:22 and 0:56:0 in two trains each having a capacity of 50 to 56 TPH depending on the grade produced. They have strictly adhered to documented quality system. There is also an in house phosphoric acid plant of 100 TPD. FACT Caprolactam plant was built with license and know-how from the world leaders in Caprolactam technology. its not being functional anymore. In Feb 1996. 18:36:0. Nylon-6 is widely used in the manufacturing of fish nets. and Captive power plant and Replacement Ammonia plant. FACTOMFOS is the premium product of FACT. USA and employs the well known TVA granulation process. 25:12:12:.5 Petrochemical division FACT PD is one of the two manufacturers of Caprolactum in India. Textile yarn manufactured from Nylon-6 exhibits fine drape.5Complex fertilizer plant The complex fertilizer plant as designed was to produce quantities of N P K fertilizers of various grades such as 17:17:17. The other plants in PD are Anone plant.strength of 30% P205. Hyam plant. The plant can produce 50000 TPA of Caprolactam and 2. Cyclohexane plant. A separate concentration section is provided to concentrate this weak acid to strong acid having strength of 55% P205. Sales Department 2. This key element is referred to as marketing. Agronomy Department . Marketing here also consists of promotion. Ag -CHIEF AGRONOMIST. Distribution Department 3. The functions of marketing department are. AM . • • Processing and sending replies to audit queries at the divisional level Sales force motivation through internal and external training programs The marketing department consists of various sub departments organized on the basis of their function. They are: 1. This implies that marketing plays a very significant role in the success of any business enterprise. 5. but the marketing manager and the staff. usually it is said that the marketing and advertising costs of the business could reach upto 80 percentage of the total production costs.5: Structure of Marketing Department The key success of any business is definitely the quality of the product but somehow. Thus the life of the company does not depend on the director.5. Agronomy AM (KL) AM (TN) AM (KAR) AM (AP) C. there is something that has more important role as the key to the success of the business.5 MARKETING DEPARTMENT DIR (Marketing) GM (Marketing) CM Sales CM Distribution C.Ag. advertising etc.AREA MANAGER Fig. Hoardings. FACT has converted its major selling points into Agro service centers rendering service to farmers. These techniques are mainly grouped into two: i) Mass Communication Techniques This method involves catering to number of people in the shortest time possible. etc within an ideal blend of information and entertainment to drive home the message of balanced fertilizer use for increasing crop production.5. soil testing. ii) Personal Contact Method As the name implies. Posters . Chief Distribution Manager is entrusted with planning. The methods adopted through FACT are through demonstrations. FACT today holds major market share in Kerala. Farmers awareness programmes in AIR . marketing prospects etc. These consists of fertilizer festivals. Marketing operations of FACT in respect of fertilizers follow a completely centralized . credit availability. FACT is the pioneer in fertilizer education and sales promotion programmes.2 Distribution Department Physical distribution of products is a major function of the marketing division. Radio jingles. Advertisement is done through Films . monitoring and implementing of product distribution and co-coordinating the movement from production units and ports. seminars . more personal and closer contact with farmers are developed through promotional methods. seminars . These centers advice the farmers on modern farm management techniques.5. FACT over the years have innovated various techniques of promotion.1 Sales Department The sales department is headed by a Chief Manager who is responsible for sales coordination of function across various depots. Wall Painting etc. 5. It also prepares detailed farm plan for each farmer according to his agriculture pattern. in this method. study classes . study classes . conduct an effective market research for analyzing market and calculating the demand and finally promote the sales of FACT products. 11% in Karnataka and 6% in other states. Many of them are recognized as effective tools of promotion by national and international agencies.5.Exhibition. dealer training etc. 3 Agronomy Department Fertilizer sales are highly dependent on farmer’s awareness on modern techniques of farming by using fertilizer for high productivity. 5. The distribution network consists of 100 Agro Service Centers. Pondicherry.pattern.5. and serves the farmers by the supply of fertilizers and agronomy advice. 50 field storage points and over 7900 retail selling points in these states. The states offices are called area and their subdivisions are called regions. FACT has created awareness about scientific cultivation and fertilizer use. . The marketing network of FACT is spread over the southern states of Kerala. Chief Agronomist has overall charge of the agronomy department. which in turn calls for a multiplicity of activities. and supervision of all agronomy services. Awareness creation involves an elaborate and well-planned farmer education and fertilizer promotion program. In each state there are 5 area office and 16 regional offices. Tamil Nadu. Through innovative farmer education and fertilizer promotion programs. which renders technical guidance. Karnataka and Andhra Pradesh. Any novel idea or concept introduced by the companies in the market is part of public relations. Press release. . Whenever there is competition there should be a role of Public Relations. as the person in the department maintains close relationship with the public and media to carry out all related functions. handouts are the main tools for external PUBLIC RELATIONS. Public Relations become saturated when the conventional methods are saturated and the company should move one step ahead in the competition. Public Relation Department’s role is proportional rate with competition. Internal Public Relations 2. Public Relation is the latest entry to the management discipline when the company starts expanding and becomes relevant when the market competition increases. External Public Relations 1. No Competition-No need of Public Relations Two aspects of PUBLIC RELATIONS 1.5. PUBLIC RELATIONS DEPARTMENT The image builder of the organization is Public Relations Department. It is to bind the employees together to make them a part of FACT family. 2. The backbone of the brand building process is public relation officer. External Public Relations Press meetings are conducted twice in a year.5. Internal Public Relations The best tool for internal PUBLIC RELATIONS is FACT News (House magazine) and is circulated to all employees on a monthly basis. Public Relations Department is under the control of Public Relation Officer. 6: Structure of Quality Control Department The functions of quality control department are. Product Quality checks: Byproduct Quality check-only in case of byproducts sold. There is one Main Lab for UD division and Sub Labs for each plant.C) Shift-In Charge Chemist Lab Assistant Fig. 5. 5. • • • Quality checking Process control assurance Pollution control 5. .3 Pollution control It is done by taking air and water samples. 5.5.1 Quality checking Raw material-Pre and post dispatch check: It is usually done by FACT Quality control cell or external agency if expertise is required.2 Process control assurance The samples are tested in the Lab. then the matter is reported to the plant manager.5.6 QUALITY CONTROL DEPARTMENT Mgr (Q. Quality department and GM (UC).5.5. If samples contain more than required level of effluent. R&D plays a vital role in giving the company and its products the cutting edge in a competitive environment. FACT R&D division has got modern and sophisticated laboratory and the facilities are continuously expanded and updated. Govt. Various processes have been developed and patented by FACT R&D division of which several have been commercialized successfully.7 RESEARCH & DEVELOPMENT DEPARTMENT Mgr (R & D) Asst Mgr Officer Staffs Fig: 5.7 Structure of Research & Development Department FACT began research in a modest scale in 1962 with just four scientists. Field trials on slow release fertilizers developed by the division have been successful. Fact’s well-equipped R&D section has advanced facilities equipped with pilot plants. . Over the years this nucleus has grown in to a full-fledged but compact integrated division with a team of about 12 personnel. modern equipment and accessories.5. It is backed by a team of highly motivated research scientists. The division is recognized by the ministry of science and technology for in house research and by the ministry of environment and forests. A wide variety of tests conforming to Indian and international standards are carried out. of India. Production of biofertilizers has commenced with an installed capacity of 150tonnes per annum. FACT has well established safety departments to look after the needs of respective divisions.8 FIRE &SAFETY DEPARTMENT JGM (UD) Mgr (Fire) Mgr (Safety) Inspectors Assistants Fireman Inspectors Fig. of India. any organization with more than 1000 employees or for Industries classified as Major hazardous unit (MHU) by the Govt. it aims to see that an employee remain as healthy as he entered the plant.5. requires a safety department. by providing safe environment and safe working conditions. .5. safe tools and procedures to carry out all operations.8 Structure of Fire & Safety Department As per the factory’s ACT 1958. It is the firm policy of the company that no operation is so important and no job is so urgent that one cannot find time to perform it safely. Further. it also involves making a detailed investigation regarding the cause of the accident. 6. 5. Measurement with sensors 3. Housekeeping inspection committee is set up to inspect the whole factory area at least thrice in a year and decides inter-departmental housekeeping awards. Prevention at source by correction of unsafe acts. ensuring material quality etc. safety committee is set up to promote active participation at all levels. 2. communicates suggestion to the concerned authority and takes necessary steps to improve the condition and to avoid further occurrence of similar accidents. Checking complaints with safe guards a. Taking safety measures b. Functions of safety department is not limited to reporting accidents and arranging compensation. Departmental inspection b. A safety manual highlighting safety practices/instructions has been prepared and distributed among employees as guidelines. Emergency action 2. Acting in case of emergency .1 PROCESSES IN FIRE &SAFETY DEPARTMENT 1. Bringing up all levels of working to a correct safety attitude through training and interaction. Training a. unsafe situations or both.FUNCTIONS 1. By sticking the factory to the Factories Act and regulation and laid down safety procedures.8. Good preventive maintenance programme. In addition to the safety department. 3. 5. 5. Safety committee meets once in two months. 7. training and development. This includes recruitment. As the part of cost reduction measures from 1998 onwards FACT reduces its employee’s strength. but it is now reduced to approximately 3139 employees by successful implementation of Voluntary Retirement . motivating the employees. selection. grievance handling etc. It’s considered to be the most expensive and important resource of every organization. HR department deals with the basic personnel and general administrative functions of the company. In FACT the scope of Human resource department is very vast.9.9 organizational chart of HR Department Human resources are a term use to describe the individuals who comprise the work force of an organization. FACT had more than 9000 employees earlier. The basic HR functions include all the basic HR function that is ought to be performed by them. performance appraisal. HUMAN RESOURCE DEPARTMENT CMD DIRECTOR (TECHNICAL) GM (HR) CM (EST) CM (IR) CM (T&D) CM (IE) MANAGER (WELFARE) MANAGER (LEGAL) MANAGER (PR) Fig 5. induction. Human Resource management is one of the most complex and challenging fields of endeavour.5. 5.1 OBJECTIVES OF HR DEPARTMENT 1. create. To provide attractive incentives.Scheme (VRS). Employment exchange as per provisions of employment exchange act 2. The following are the sources of recruitment 1. ESTABLISHMENT FUNCTONS • Recruitment and Selection The recruitment policy is done as per prescribed recruitment specification with proper authority appointment by board of directors. encourage value system and create environment of trust and mutuality of interest. 5. Continues evaluation of performance of employees and appropriate suggestion . rewards and other benefits to ensure retention of competent employees 5.9. the HR department of FACT is there to do all things which are necessary for the betterment of employees and for the growth of the organization. To maintain the optimum manpower required to sustain the growth of the organization. Maintain high morale. Casual labours who were initially taken from employment exchange 5. To provide. 2. 3.2 FUNCTIONS OF HR DEPARTMENT A. potential. To manage and train the Human Resource to ensure their personal and organizational development. • Performance Appraisal Performance appraisal in FACT started in 1962. utilize.assessment at training needs and performance 32tilizatio. Employees on deputation from government 3. From selection to recruitment.9. Apprentices who completed training in FACT. 5. and motivate employees to accomplish organizational goals.in 1985 the systems was further revised to include assessment . 5. Transfer from public sector undertakings. With this arrangement the Management Development Centre (MDC). the training centre of Cochin division. The concerned officer will bring the grievance orally to the next immediate superior officer. work place. 2. Udyogamandal division and the petro-chemical division have been combined into one department called “FACT Training Centre”. Rating is given according to some scales like job knowledge. For managerial employees. There is different mechanism for managerial and non managerial employees 1. transfer. According to the procedure the trade union will present the grievances. complaints against colleagues etc. unions and department where the solution would be given. self appraisal system is adopted. Normally all grievances arise out of decision taken at the division level shall be processed within the time. Handling of non managerial grievances The major issues are relating to wage payment. . At first stage the employee in person will take up his grievance with foreman or assistant manager. Centralization was effected with a view to utilizing all resources productively and to identify training needs of employees based on a uniform approach and imparting required training. • Redressal of Employee’s Grievances FACT has a systematic mechanism to handle the grievances. he can request to forward the grievance to the grievance committee consisting of representative of management.at correct time will help to improve their performance. Handling of managerial grievances The issues that lead to grievances in this level relate to work. Training The training and development activities of the company have been started from April 2005. either he in person or accompanied by his department will present his grievance to the head of department for solution. If the issue is not resolved at this stage. quality of work. If it is also not satisfactory to the employee. The answer will be given within 58 hours. 3. promotion etc. If it is not satisfactory to the employee. officer submits a written petition to CMD. B. Industrial Relation Function Industrial relation operates only within the organization .the inter-organizational relation is handled by the corporate cadre.60-70% of management time is lost in resolving IR issues. Employees have to follow the standing orders approved by Labour Department of Government of Kerala. Standing order is a book containing DO’S & DONT’S. Whenever there is a violation of these rules or misconduct by employees there is procedure for punishment including principle of natural justice. Employees will be given a chance to explain the reason for such violation. In organizations there will be tendency to employees to join in trade unions for protecting their own rights and help the management to run the organization in a good manner. In various divisions of FACT there are total of ten recognized trade unions functioning UDYOGMANDAL DIVISION 1. FACT employees association 2. FACT workers union 3. FACT employer’s congress (INTUC) 5. FACT employee’s organization PETROCHEMICAL DIVISION 1. FACT employee’s association 2. FACT workers organization COCHIN DIVISION 1. FACT employees union 2. FACT employees association 3. FACT workers congress FEDO 1. FEDO employees association 2. FEDO employee’s congress C. Welfare Functions a. Statutory schemes 1. Employees State Insurance (ESI) 2. Provident Fund and Miscellaneous Provision Act 1952-exempted scheme in FACT 3. Payment of Gratuity Act 1972 5. Kerala Labor Welfare Fund Board Rules, 1975 5. Industrial Employment (standing orders) Act, 1956 6. Factories Act 1958covers (health, safety, welfare) b. Nonstatutory schemes 1. Family relief fund 2. Superannuation benefit fund 3. Family pension scheme of the company 5. Retirement benefit fund 5. Employees Welfare Fund 6. Uniform 7. Children’s education allowance 8. Medical allowance 9. Leave and holidays c. Incentive schemes 1. Incentives for employees 2. Incentives to promote Hindi 3. FACT Merit Award 5. FACT Service Award 5. Incentives to promote sports and players. d. Voluntary schemes 1. Contributory Health Scheme 2. Sports and Recreation 3. FACT employee’s consumer co-operative society 5. FACT employees Housing co-operative society 5. School facilities 6. Company accommodation (quarters facility) D. Industrial Engineering The main objective of this section is to make effective 36tilization of the manpower resources and restructuring it for the benefit of the organization. Main functions are 1. Manpower planning that compose of manpower audit and forecast future requirements 2. Custodian of manpower inventory 3. Work study a. Removing system bottlenecks b. Production incentive etc 5. Maintenance scheduling 5. Work environment study 6. Employee problem analysis Working Time The working time of administration section and workers are different. The administration section works from 8AM to 5PM. The workers work on shift basis. There are 3 shifts 1.8AM-5PM 2.5PM-12PM 3.12PM-8AM 10. welding technology and Process plant operation are being organized. Meeting the obligation of apprentice Act 1961/1973 3.1 FUNCTIONS 1. inplant training and project work to students 5. These courses are planned to be offered in association with Governmental agencies and statutory bodies. TRAINING DEPARTMENT CM (Training) MGR (Training) OFFICER (Training) INSTRUCTORS STAFF’S Fig: 5.10. Facilitating post qualification training. The aim is to convert the training centre into a “Skill Development Academy “with a view to provide facilities for skill development and making educated youth employable.Traiing centre of FACT has started job oriented courses in Fire & Safety Engineering.10 Organization Structure of Training Department The training and development activities of the company have been centralized with effect from April 2005.5. New courses in Heavy equipment operation and maintenance. . Training officers and workers of the company as a whole in identified areas 2. 5. Facility for employees to attend external training programmes. Safety.5. Electrical. general topics related to HRD. Energy Conservation etc. Improper feedback 2. d. Skill Development Programs FACT Training Centre is conducting a one-year full time diploma course in Fire & Safety Engineering. Instrumentation Maintenance & Welding. It also conducts Certification course in Heavy Equipment Operation. b. Civil Unit Operations. Environment.10.10. Improper selection of employees from the various departments. Academic programs Technical & Non-Technical it includes In Plant Training/Project work for Engineering/Professional students. 3. The training centre includes Programs on Refresher training in various branches of knowledge like Mechanical. Apprenticeship Training FACT Training Centre is an approved Centre for Apprenticeship under Board of Apprenticeship Training/Regional Directorate of Apprenticeship Training Chennai.2 CHALLENGES TO TRAINING 1.3 Training programs a. Instrumentation. 5. ISO standards. Employee Developments Programs FACT Training Centre conducts training programs for Supervisory/Managerial and NonManagerial Employees of FACT and other companies/organizations in Kerala. Health. . c. Limited time available due to the pressure of production tar. 5.11 COMPUTER SERVICE DEPARTMENT CHIEF MANAGER CHIEF MANAGER CHIEF MANAGER CHIEF MANAGER CHIEF MANAGER Fig 5.1 OBJECTIVES • • To keep the management abreast of the fast paced technological changes in the field of information technology and recommending timely enhancements of the IT resources in the enterprise. payment of wages and settlement of claims . This multi system computer department is constantly updating its hardware and software.11.11 organization structure of computer department The computer department of fact was launched in the year 1965. They started online computing in1986.The centre is equipped with servers in all its divisions connected by FACT NET.5. To project FACT into the promising area of e-commerce as soon as the technology is adopted in a big way in the Indian business sector. 5. FUNCTIONS OF COMPUTER DEPARTMENT • • • • • • Planning and procurement of computer systems in all divisions Software development and system support to all divisions User training on computer awareness and applications Maintenance of FACTNET connecting all divisions Process data and prepare relevant information for various levels of management for appropriate and speedy decision making Prompt and efficient services for meeting information requirements of the employer.11.2. with the introduction of first generation computers in finance to meet the growing need for the speedy data processing. A complete implementation and interlinking of various departments were completed in 2004. 5. . Vigilance Officers are deputed from time to time to speak on vigilance matters during the service training programmes of the company to sensitize the employees and the public about evil of corruption.12 VIGILANCE DEPARTMENT CVO (FACT) Chief Manager DY Chief Manager Inspector Fig.O). Anonymous complaints are not taken. The stress is on transparency and accountability in the working of the company. Vigilance is an integral part of the management function.12: Structure of Vigilance Department Vigilance Department of FACT is headed by a Chief Vigilance Officer (C.5. who possesses the status rank and perquisites of a Functional Director.V. It has adopted preventive vigilance as the main theme. SWOT ANALYSIS .CHAPTER 6. 1. High capacity utilization of available space through residential areas. FEDO has worked in association with many international process licensors. and ISO audits and so on. High quality products. has acquired the capacity of customizing and designing projects to the requirements of the customers. Good support with farmers/end segment 6. . installation. ammonium sulphate. FACTAMFOS is a premium product in complex fertilizers containing sulphur 4. FEDO has own process know-how for hydrogen. nondestructive testing energy audits. 3. Strong dealer network in south India 10. Being a Government firm they get all necessary funds from the Government of India. One of the two producers of Caprolactum in India with world-class quality 7. FEDO is an approved centre of surveyors and audit for portliness. 13. Sustained operating parameters of the plant at good level and productivity of plant at good level 5. perhaps one among the best in Indian fertilizer segment 11. DAP and complex fertilizers 12. sulphuric acid. ISO certification to most of the divisions 9.6. STRENGTHS 1. 2. shopping facilities etc. Good engineering and consultancy design. banks. Well qualified and technically skilled manpower 6. 2. 2.3. 3. No serious attempt at career planning and succession.2.4. Lack of product line diversification 4. Operational efficiency and high capacity utilisation of plants. Procedures followed are cumbersome and often led to delay in decision making. Scope for expansion and diversification. 6. Lack of working capital resources 5. Volatility in the prices of raw materials and feed stock like Naphtha. etc. 6. WEAKNESS 1. Unwillingness of employee to make important decision. Several unskilled jobs which could be sub contracted are undertaken by permanent employees at high cost. Strong marketing network in southern India. THREATS 1. 3. Doesn’t have a significant market reach outside South India. . 3. Fluctuations in prices of Caprolactam. 4. furnace oil. 6.6. 2. OPPORTUNITIES 1. Non availability of sufficient quantity of phosphoric acid and other inputs. 6. Utilization of land for generating additional revenue. CHAPTER 7FINDINGS AND SUGGESTIONS . SUGGESTIONS • • • • • • • Improving the efficiency and productivity of existing plants. drinking water. organic fertilizers. The authority and responsibility is clearly defined in FACT Strict rules and procedures are followed by FACT for issuing quotations FACT produces high quality products and accepted by world at large. bio fertilizers. Enter into the joint ventures with global company’s inorder to compete globally.1. 7. Good canteen. Fact’s product has already captured South Indian market but there is a need to expand operations to North India.7. FACT conducts training programmes for the employees for the purpose of increasing the efficiency. trading of fertilizers. land and human resources for growth and diversification. . Effective and productive use of all other assets of the company such as gypsum.2. Growth and diversification in core sector (fertilizers and petrochemicals) Re organizing marketing network with special focus to new products. medical clinic facility available to employees It gives more importance to the employee’s safety measures. FINDINGS • • • • • • • The core areas of FACT are the production and marketing of fertilizers and petro chemicals. Young and talented innovative workers should be given opportunities as there is lack of fresh and young blood in the organisation. CHAPTER 8 .CONCLUSION . The study about the Organization FACT was done to understand the various departments. the functional aspects and other areas regarding the functioning and governance.8. It has been a great experience for us to do the organization study in a reputed organization like FACT as we understood the importance of FACT for the farmers and also for the Indian economy. Even though our study was limited to Udyogamandal Complex we got opportunities to visit Cochin Division and Willington Island . adheres to values and malpractices are not encouraged. we have been able to achieve the same and familiarize ourselves with the functioning and working of an organization. FACT is transparent in all its activities. is a Multiproduct. .1 CONCLUSION The Fertilizers and Chemicals Travancore Limited (FACT).We were also provided an opportunity to do clerical work in the payroll section of Udyogamandal Division. incorporated in the year 1943 at Udyogamandal. Currently FACT is running at 23 crore profit. Multi-Divisional Company focused in the manufacture and marketing of Fertilizers. Chemicals and Caprolactam. This study has improved my confidence by its successful completion to undertake such studies in the future. During the course of the Organization Study. CHAPTER 9 -BIBLIOGRAPHY . 1973. The Minerva Associates Calcutta. FACT department manuals 4. Kotler Philip. Marketing Management. FACT news 5. FACT diary 3. FACT 67th Annual Report (2010-2011) 2. www.fact.M. Kevin Lane Keller.co.in . “Organizational Structures and Job Attitudes”. D. 7. Abraham Koshy and Mithileshwar Jha (2009). BIBLIOGRAPHY 1.1. Pestonjee.9. Delhi: Pearson 6.
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