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HINDUSTAN INSECTICIDES LIMITED

MANGALAM COLLEGE OF ENGINEERING Page1

CHAPTER 1

INTRODUCTION


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1.1 INTRODUCTION TO THE STUDY

An organization is an entity such as institution or an association that has collective goal &linked to external environment. Organizational studies encompass the systematic study &

care full application of knowledge about how people act within an organization.

Organizational study refers the study of organization as a whole & getting adequate

knowledge with various departments in the organization

This organizational study has been conducted with the intention of understanding the

structure of the organization and the functions carried out by its departments to get a

holistic view, at the Hindustan Insecticides Limited, Udyogamandal, Eloor, a chemical

manufacturing company.

With growing world population, there is an increasing need for larger rate of production

of food-grain, and hence a need for quality pest control measures as well. Thus, the

industry promises bright prospects in markets world-wide.

HIL, a public sector enterprise, was incorporated in March 1954 under the first five

year plan, for the National Malaria Eradication Programme. Udyogamandal unit was

established in 1958, and over the years, the company has grown to produce a large

variety of quality pesticides, insecticides and Weedecides for farmers world-wide.

The Udyogamandal unit is headed by a General Manager, under whom the departmentsof Personnel and Administration, Finance, Research and Development, Production,

Engineering, Commercial, Quality Control and Safety functions in a well structured

manner.


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The functioning of the departments, as facilitated by the employees is owed to the

standing orders adopted by the company. An analysis of the strengths, weaknesses,

opportunities and threats faced by the company is done. Being a public sector enterprise,

the company is well backed by the government of India. This promises the company to

develop. Potential markets across the world are being tapped. With sustained government

policies, the company has bright prospects.

The organization study was done as a partial fulfillment of the requirement of the award of

Master of Business Administration. The main objective of study is to understand the

working of various departments &their functions.

It also enables to explore issues & problems in an organizational settings & giving

suggestions to these issues that would help the future managers to face the challenges ahead

1.2 OBJECTIVES

1. To analyze the industry and company profile with an overview of the strengths,

weaknesses, opportunities and threats of the company.

2. To examine the organizational structure of the company and its departments

3. To understand the process involved in the organization

4. To identify internal and external factors that affect strength, weaknesses,

opportunities and threats.

5. To understand how information is used at various levels of the organization for

decision making.


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1.3 SCOPE OF THE STUDY

This study was conducted for a period of one month (may2014).This organizational study

comprises the entire functioning of the organization which includes the structure, function

and process of various departments and their interdependence

1.4 METHODOLOGYHOW THE DATA WAS COLLECTED

Primary sources

Primary sources of information are observation and semi structured interviews conducted with

personnel at various levels of the organization

Secondary sources

secondary source of information are collected from internal projects annual reports

administrative report and web site

.

PERIOD OF STUDY

Period of the study is from 2nd may 2015 to 30th may 2015

1.5 LIMITATIONS OF THE STUDY

There were difficulties in obtaining data from executives and managers

due to their busy work schedule.

1. An in-depth study of the company could not be carried out due to

Shortage of time.

2. The reliability of data used for study is largely depends upon the

Companies reports and the information given by the executives.


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1.6 CHAPTER SCHEME

1. CHAPTER 1: INTRODUCTION

2. CHAPTER 2: REVIEW OF RELATED LITERATURE

3. CHAPTER 3: DESIGN OF STUDY

4. CHAPTER 4: INDUSTRY PROFILE

5. CHAPTER 5: COMPANY PROFIL

6. CHAPTER 6: ORGANISATIONAL STRUCTURE

7. CHAPTER 7: DEPARTMENTAL PROFILE

8. CHAPTER 8: SWOT ANALYSIS

9. CHAPTER 9: FINDINGS, SUGGESTIONS AND CONCLUSION


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CHAPTER 2

REVIEW OF RELATED LITERATURE


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2.1Organization

Organization is a systematic arrangement of people to accomplish some specific purpose.

Every organization is composed of three elements i.e. people, goals and system. Each

organization has a distinct purpose. This purpose is expressed as goals generally. Each

organization is composed of people. Every organization has a systematic structure that

defines the limit of each member. Some members are managers and some are operatives.

A social unit of people that is structured & managed to meet a need or pursue collectivegoals. All organizations have a management structure that

determinesrelationshipsbetween the differentactivities and themembers, and subdivides

andassignsroles,responsibilities, andauthority to carry out differenttasks. Organizations

areopen systems--they affect and are affected by theirenvironment.

Basically, nature of organization can be viewed in two ways:

Organization as a process

Organization as a structure or framework of relationship

Organization as a Process

As a process, organization is an executive function. It is the process of determining,

arranging, grouping &assigning the activities to be performed for the attainment of

objectives. It becomes a managerial function involving. The following objectives:

I. Determining activities the necessary for the accomplishment of the

business objectives.

II. Division of work.

III. Grouping of inter-related activities.

IV. Assigning duties to persons with requisite competence.

V. Delegating authority

VI.

Coordinating the efforts of different persons & groups.
http://www.businessdictionary.com/definition/relationship.htmlhttp://www.businessdictionary.com/definition/activity.htmlhttp://www.businessdictionary.com/definition/member.htmlhttp://www.businessdictionary.com/definition/assign.htmlhttp://www.businessdictionary.com/definition/roles.htmlhttp://www.businessdictionary.com/definition/responsibility.htmlhttp://www.businessdictionary.com/definition/authority.htmlhttp://www.businessdictionary.com/definition/task.htmlhttp://www.businessdictionary.com/definition/open.htmlhttp://www.businessdictionary.com/definition/environment.htmlhttp://www.businessdictionary.com/definition/environment.htmlhttp://www.businessdictionary.com/definition/open.htmlhttp://www.businessdictionary.com/definition/task.htmlhttp://www.businessdictionary.com/definition/authority.htmlhttp://www.businessdictionary.com/definition/responsibility.htmlhttp://www.businessdictionary.com/definition/roles.htmlhttp://www.businessdictionary.com/definition/assign.htmlhttp://www.businessdictionary.com/definition/member.htmlhttp://www.businessdictionary.com/definition/activity.htmlhttp://www.businessdictionary.com/definition/relationship.html


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When we consider organization as a process, it becomes the function of every

manager. Organizing is a continuous process & goes on throughout the life-time of an

enterprise. Whenever there is a change in the circumstances or material change in

situation, new type of activities spring up.

The process of organization thus, involves dividing the work in a rational way and

integrating the activities with work situations &personnel. It also represents humanistic

view of the enterprise since it is the people who are uppermost in the process of

integration of activities. Continuous review adjustment makes it dynamics as a well.

Organization as a Structure

The term organization structure refers a machine of management, in its achievement

of the ends, determined by its administration. In a short organization structure refers a well-

defined system which people require for the execution of their work responsibilities. It

helps then to relate to each other, coordinate their activities and achieve organizational goal

or targets. It minimizes confusion, suitable work behavior& maximizes effectiveness.

Organizing is treated as one of the important function in process.

2.2 TYPES OF ORGANIZATIONS

Organization structure varies from industry to industry. According to the nature of

business the structure may form in the following ways.

a) Line Organization

It is the military type organization, where each department is generally a complete

self-sustaining unit; each department is under the control of department head who is

completely responsible for organization the department. All department heads are

responsible to the general manager; he is responsible to the managing director.


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b) Line & staff Organization

Here the work is dividing to two broad divisions viz, the staff that is responsible for

planning &the line for the actual execution of the work. Here the staff personnel give only

advice to the line officials. But do not enforce it, i.e., staff member are thinkers & the line

members are doers.

c) Functional Organization

Here employees are grouped together on the basis of the primary skill need to do

their job. Those structures offer the organization two way advantages.

Encourage technical expertise.

Reduce duplication of activities.

The main elements that determine to make on organization are people, tasks, structure &

technology where in the organization takes in some of there as inputs to derive the desired

outputs. While doing so, the following management process work independently to run a

successful organization i.e.

Planning

Organizing

Staffing

Directing

Controlling


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Also the management though out have changed &evolved from the pre-scientific

management period to early management approach &to modern management. There are six

elements those managers to address when they design their organization structure.

Work Specialization

Departmentalization

Chain of command

Centralization

Formalization &Decentralization

2.3 ORGANIZATIONAL DEVELOPMENT

Organizational development is a collection of planned change, interventions built on

humanistic democratic values seeks to improve organizational effectiveness & well-being.


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CHAPTER 3

DESIGN OF THE STUDY


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DESIGN OF THE STUDY

3.1 Area of the study

The area is selected within Hindustan insecticides limited udyogamandal

3.2 POPULATION

The population or universe is the specific group of people. For study

population is taken as the employees in the Hindustan insecticides limited

udyogamandal

3.3 TOOLS OF STUDY

A sampling is group of respondents selected from the whole universe of

study is indefinite or it is neither impractical nor feasible to conduct a

census study covering each and every element in the population, we adopt a

sample survey.A sample study can reveal optimum result regarding a homogeneous

population. A sample study can give a correct idea of the characteristics of

the population under consideration. Sample design is the frame work

defining the method and nature of sample to the adopted for the study.

3.4 Sampling design

Sampling design is an integral part of the data collection process as it is not

feasible to secure data from each and every unit of the entire population. Simple

random sampling itsused to conduct the study.


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Simple random sample is a subset of individuals (a sample) chosen from a

larger set (a population).Each individual is chosen randomly and entirely by chance

,such that each individual has the same probability of being chosen at any stage

during the sampling process.

3.5 Sampling method

Convenience sampling method is used in this organizational study it refers to

that fraction of population being interviewed which is selected by convenience.

3.6 Sampling unit

Sampling unit specifies the unit that is taken for the sample .A sampling unit

constitutes those elements that are considered available for selection in some stage of

the sampling process.

3.7 TYPES OF STUDY

1. PRIMARY DATA

Informations were collected by conducting personal interviews and

discussions with officials, employees of the company and also by direct observation.

2. SECONDARY DATA

The secondary data can be collected through financial records, brochures,

company records etc.

Secondary data are collected from:

Annual reports

Company documents

Company websites


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Sources of secondary Data

1.

WebsitesThese websites are used for collecting data

2.

www.hil.gov.in

3.

www.Chemicals.com

4.

www.researchandmarket.com

5. www.chemfabalkalis.com

2. Annual Report

The different years of annual reports of Hindustan insecticides limited

provides more information.

3.8TERTIARY DATA

Tertiary sources are an interpretation of a secondary source. It is generally

represented by index, bibliographies, dictionaries, encyclopaedias, handbooks,

directories &internet search engines.
http://www.hil.gov.in/http://www.chemicals.com/http://www.researchandmarket.com/http://www.chemfabalkalis.com/http://www.chemfabalkalis.com/http://www.researchandmarket.com/http://www.chemicals.com/http://www.hil.gov.in/


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CHAPTER 4

INDUSTRIAL PROFILE


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4.1 INDIAN CHEMICAL INDUSTRY

HISTORY

The Indian chemical industry is one of the oldest domestic industries in India,

Contributing significantly to both industrial and economic growth of country since it

achieved

Independence in 1947.the chemical industry currently produces nearly 70000

commercial products ranging from cosmetics and toiletries, to plastics and pesticides.

The wide and diverse spectrum of Product can be broken down into a number of

categories, including inorganic and organic chemicals, drugs and pharmaceuticals, dyes

and pigments, fine and specialty chemicals ,Pesticides and Agrochemicals, and

fertilizers

With a special focus on modernization, the Indian government takes an active role in

Promoting and advancing the domestic chemical industry. The Department of

chemicals And petrochemicals,which has been part of ministry of chemicals and

fertilizers since 1991,Is responsible for policy, planning, development and regulation of

industry. A number of Government owned and private sector companies produce an

array of dual-use chemicals that are potential chemical weapons precursors and

intermediates. Whereas in the private sector, numerous organizations,

Including the Indian Chemical Manufacturers Association, the Chemicals and

Petrochemicals Manufacturers Association and the Pesticides Manufactures and

Formulators Association of India. All work to promote the growth of the industry and

the export of Indian chemicals


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4.2 .PESTICIDE INDUSTRY: GLOBAL SCENARIO

The world pesticide industry is dominated by nine multinational basic producersfrom the United States and Western Europe; they account for nearly one half of the

total output. Monsanto, Bayer, DuPont, Dow agro science, BASF, in the top ten is

Agrevo, a joint venture of Hoechst and Schering. Producers in the second tier

(annual sales below $1 billion) include sumitomo, Sandoz, FMC and Rohm and

Haas. Expenditures on herbicides accounted for the largest portion of total

expendituresmore than 40%, followed by expenditures on insecticides, fungicides

and other pesticides respectively.

table 4.1

Types of pesticides World market (in

million dollars)

World market (in %)

Herbicides 14118 44%

Insecticides 8,763 28%

Fungicides 6027 19%

other 2848 9%

Total 31756 100%


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4.3.INDIAN PESTICIDE INDUSTRY

Agriculture is the keystone of the Indian economy. Ensuring food security for more

than1 billion Indian populations with diminishing cultivable land resource is a

herculean task. This necessitates use of high yielding variety of seeds, balanced use of

fertilizers, judicious use of quality pesticides along with education to farmers and the

use of modern farming techniques. It is estimated that India approximately loses 18

percent of the crop yield valued at Rs.900 billion due to pest attack each year. The use

of pesticides helps to reduce the crop losses, provide economic benefits to farmers

reduce soil erosion and helped in ensuring food safety & security for the nation.

India is the largest manufacturer of pesticides among the south Asian and South

African

Countries. Chemical pesticide industry in India at present comprises of large domestic

players, large multi nationals and the small scale sector.

Indiaspopulation at present is over a billion and it is expected to rise to 1.5 billion by

year 2040.Presently, the annual food grain production is on an average of 210 million

tons, but the requirement will be 300 to 350 million tons by year 2040. Hence, food

grain production needs to increase to around 1.5% per annum.

India produces 16% of the worlds food grain but uses less than 2% pesticides used

worldwide. Hence the industry still has a good potential of growth. In India, higher

rates of food grain production can be achieved by enhanced and proper use of

irrigation, high yielding seeds, balanced use of fertilizers, high quality plant protection,

education to farmers etc.


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The Indian companies have developed process technologies for more than 30

pesticides, and pesticides exports from India are steadily on rise. India exports

pesticides for approximately Rs.2000 cores every year. This has increased by 15% in

the last three years and the Indian pesticide industry has built good reputation as a

reliable supplier.

Insecticides always dominated the Indian market as well. However, in the past few

years the share of herbicides and fungicides is steadily increasing, and the overall

consumption of chemical pesticide is declining.

Still, according to the report of standing committee of petroleum & chemicals, the

losses from pests, insects and diseases amounted to approximately 90,000 crores per

annum. This situation calls for taking enhanced and effective steps for use of

pesticides to save crop losses and increase food grain production. Industry and

government should take special initiatives to popularize the use of insecticides,

herbicides and fungicides to minimize the crop loss.

The goal of sustainable agriculture is to maintain production at levels necessary to

meet the increasing aspirations of an expanding world population without degrading

the environment. Over the next two decades or so pest control practices are believed

to be affected globally as:

Primary reliance will remain on bio-based application of chemicals

More selective less persistent insecticides will be available, and they will be

applied by skilled applicators.

Disease and insect resistant varieties and biological pest suppression will

emerge as major component of the pest control activity.


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4.4 Current status of chemical industry in India

The Indian pesticide industry has advanced significantly in recent years, producing

more than 1000 tons of pesticides annually. India is the 13 th largest exporter of

pesticides and disinfectants In the world and the terms of volume is the 12 th largest

producer of chemicals. The Indian agrochemical, petrochemical are some of the

largest growing sector in the economy. With an estimate worth of $28 billon,it

accounts for 12.5 percent of he countrys totalIndustrial production and 16.2 percent

of the total export from Indian manufacturing sector

4.5 Future predictions of chemical industry in India

However the recent studies shows that the chemical industry in India has the potential to

grow to us$100billion by 2017, averaging an annual growth rate of 15%.


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CHAPTER 5

COMPANY PROFILE


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UDYOGAMANDAL

Hindustan insecticides limited was incorporated in march 1954 to operate a DDT

plant gifted to government of India by the UNICEF to help to eradicate malaria in the

country.HIL is a fully government of India owned company. The company affairs are

taken care of by the board of directors. The strategic decisions are taken by the

chairman and managing director who is at the helm of affairs, is also assisted by the

general manager.HIL is a foreign exchange earner to the nation who exportspesticides to European countries and Latin American countries.

The Udyogamandal unit of Hindustan Insecticides Limited was the first among the

central public sector undertakings set up in Kerala during the second five-year plan in

1958.It is situated in Eloor panchayath spreading over an area of about 34 acres.

Availability of natural resources especially water, access to road, rail, air and seaport,

non-populous area and easy access to hospitals, fire stations and police stations to

meet emergencies are the main reason for the company for setting up its major

manufacturing unit in Udyogamandal. The place is an industrial area which teams

with industries like FACT, TCC, IRE, MERCHAM and BSES. HIL is surrounded by

Southern Gas Limited, FACT Udyogamandal division Indian Rare Earths. These

companies provide employment opportunities to the public and helps to solve the

unemployment problem prevailing in the state to an extent. Even though

Udyogamandal division of HIL is governed by the Delhi office, they are allowed to

make certain decisions regarding purchase, production and distribution depending

upon demand.


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The unit is headed by the General Manager and he is subordinated by various

department heads, officers and superintendents. The company meetings are

programmed by Personnel Department. The General Manager conducts daily meetings

with department heads and the day to day operations are managed on the basis of the

decision taken in these meetings

5.2 MANUFACTURING UNITS

With the growing demand of public health programme the production capacity of the

company was increased subsequently. The company has at presented three

manufacturing units one at Udyogamandal in Kerala state (1958) and another at

Rasayani Maharashtra state (1977).

The company had one manufacturing unit at Delhi which was closed on December 1st

1966 along with 167 other industries for environmental reasons as per the order of the

honorable Supreme Court. HIL has started its pesticides formulations planned atBathinda on 5th April 2003


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5.3 History:

HIL, a Govt. of India Enterprise, under the Dept. of Chemicals & Petrochemicals,

Ministry of Chemicals & Fertilizers, Govt. of India, was incorporated in March,

1954 for supplying DDT for National Malaria Eradication Programme launched by

the Govt. of India. Subsequently, the company diversified into agro pesticides to

meet the requirements of agriculture sector and has grown manifold with a turnover

of Rs. 2006.00 million rupees in 2009-10. Company has also entered into the field

of safe and ecofriendly botanical and bio-pesticides for public health and plantprotection. It has also started marketing of seeds in the northern, central and

western parts of the country. The product range includes Insecticides, Herbicides,

Weedecides, and Fungicides etc. It has a pest control division catering to industry

houses and offices.

With the renewed focus on DDT, as a cost effective and efficient tool to fight

Malaria, the company has ventured into export of DDT 75% WDP mainly to

African countries. With US re-starting aid for procurement of DDT and WHO

strongly endorsing usage of DDT for indoor spraying, the company sees a great

scope in emerging as the main DDT supplier to the world as HIL is the world's

largest DDT producer. Moreover, the company has more than 50 years of

experience and expertise in the manufacture of DDT.

The company has been exporting its agro products to a number of countries such

as Netherland, UK, Jamaica, UAE, Manila, S.Korea, Belgium, Guatemala, France,

Germany, Argentina, Ethiopia, Egypt, Spain, etc. for the last more than a decade

and its products are well-accepted in the world market. Company has a wide

network of marketing throughout the country through its six Regional Sales Offices

and good number of dealers.


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The company has three manufacturing units located at Udyogamandal, near Kochi

(Southern India), Rasayani near Mumbai (Western India) and Bathinda in Punjab

(Northern India). The company also has a Research & Development complex including

an experimental farm at Gurgaon in Haryana.

5.4 Vision:

To be a global player in the field of crop protection and public health.

Mission:

To provide quality products through clean and safe technology which would enhance

agricultural productivity and promote Public Health along with increasing product

range, exports, efficiency and productivity of the Company.

RESEARCH AND DEVELOPMENT

Our Research and Development centre is located in Sector 20 of Gurgaon District in

Haryana just at

Delhi-Haryana border besides national highway. R&D is fully equipped , has trained

and experienced man power with sufficient farm area for conducting trials for

product performance .R&D Is undertaking following activities

Development of technology for generic pesticides and their intermediaries

Replacing wet analysis by instrumentation method for analytical estimation of

pesticides and their formulations.

Development of better recipes for existing pesticides formulations, to improve

cost efficiency by using locally available indigenous row-material and inerts

For improvement in existing processes, to enhance efficiency use of less toxic

and eco friendly materials and minimize population


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Development of recipes for eco friendly bio-pesticides formulations to replace

the existing toxic chemical pesticides formulations

Development of monitoring methods by instrumentation for different

pesticides and their intermediates for better process control

AWARDS AND ACCREDITATIONS

Accredited with ISO 9001-2000 certification for all the manufacturing units

Accredited with ISO 14001-2004 for Rasayani unit. OHSAS-181001certificate for Rasayani unit

Amity corporate excellence award for being one of the best and most

admired business organization with their unparalleled program ,, by the amity

international business school, Amity university .

Amity HR excellence Award for being one of the best and most admired

business organizations of the world due to their innovative strategies for

human resource management and development by amity international

business school, Amity university


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5.5 PRODUCT PROFILE

DICOFOL

Common name : Dicofol

Empirical formula : C14H9C15O

Form : Brown viscous oily material

Users : its formulations are recommended to control

Phytophagous mites of wide range of field crops

Production capacity : 200 kg MS Drum

Dicofol is produced by the chlorination of DDT followed by hydrolysis of the chloro

product. The technical product is formulated as 18.5% EC for use in agriculture. Dicofol is

also active in the protection of many fruits and vegetables from all types of mites species.

The plant has a capacity of 150 TPA for Dicofol (technical) and 600 KL per annum for EC

formulations. Both the technical and formulation plants are based on the technology

developed, scaled up and optimized by the companys in house Research and development.

Dicofol is the effective insecticide especially for controlling mites and lice and is widely

used as an acaroids in tea plantation and vegetable gardens.


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MANCOZEB

Fungicide

Commo Name : Mancozeb

Empirical formula : (C4H6MnN2S4 )Zny

From : Grayish yellow free following powder

Uses : its formulations are recommended to control

: fungal diseases in a wide rage of file crops

production capacity : 1000MT/ Annum

Mancozeb is a coordination complex of manganese ethuylenebis dithiocarbonate. It is

a protective leaf fungicide used for the control of a broad range of plant diseases and also

for seed treatment. Being an environment friendly fungicide, it is effective against almost

all types of fungi. Mancozeb is expected to have excellent market potential in both

domestic and international circuits.

Manufacturing process: Mancozeb is manufactured from carbon disulfide, ethylene

diamine, manganese and zinc salts. Initially the plant capacity is 1000 TPA for Mancozeb

(technical) and 1800 TPA for formulation with provision for expansion at a later stage.

The plant is based on the in house technology of HIL by the Research and Development

division.


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DDT 75 WP

Public health insecticide

Common Name :DDT(Dichloro Diphenyl Trichlororthane)

Empirical formula :C14H9C15

Form :waxy solid

Uses :its formulations are recommended to control

Mosquito vector and anrthroped disease

vector

In public helth

Production capacity :6344MT/Annum

The raw materials used for its production are benzene, chlorine, specially denatured ethyl

alcohol and sodium hydroxide.

The steps involved in the manufacturing process of DDT are:

a) Preparation of mancozeb

b) Preparation of chloral alcoholate

c) Preparation of chloral from chloral alcoholate

d) Condensation of mancozeb and chloral

e) Washing, distillation of mancozeb and casting DDT.


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DDT is produced by the condensation of monochloro benzene (obtained from chlorine and

benzene) with chloral (obtained from chlorine and alcohol) in the presence of oleum.

The reactions are complex and the chemical used are most corrosive ones. Therefore the

manufacturing processes are highly sophisticated and equipments used are most modern

and are of special material construction.

Technical DDT is further processed into water dispersible powder (WP) by particle size

reduction after mixing with inert like china clay and wetting and dispersing agents. It is this

formulation that is used in the malaria eradication programme of NMEP.

The technical plant in Udyogamandal unit has a capacity of 1344 TPA of DDT (technical)

and 2688 TPA for DDT WDT. DDT is not used in agriculture and is used extensively for

the control of malaria and kala azar diseases. DDT is marketed in the brand name HILDIT.

DDT is now only sold for controlling vector born diseases.


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CHAPTER 6

ORGANISATIONAL STRUCTURE


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ORGANISATIONAL STRUCTURE

Organizational structure is a system used to define a hierarchy within anorganization. It identifies each jobs, its function and where it reports to within the

organization. This structure is developed to establish how an organization operates and an

organization in obtaining its goals to allow for future growth.

Explicit and implicit institutional rules and policies designed to provide a structure

where various work roles and coordinated. Organizational structure also determines how

information flows from level to level within the company. In a centralized structure,

decision flow from top down. In a decentralized structure, the decision are made at various

different level.

The organization chart is a diagram showing graphically the relation of one official

to another, or others, of a company. It is also used to show the relation of one department to

another, or others, or of one function of an organization to another, or others. This chart is

valuable in that it enables one to visualize a complete organization, by means of the picture

it presents. A company's organizational chart typically illustrates relations between people

within an organization. Such relations might include managers to sub-workers, directors to

managing directors, chief executive officer to various departments, and so forth. When an

organization chart grows too large it can be split into smaller charts for separate

departments within the organization. An organizational structure is the way that a business

is set up to provide a hierarchy and a specified line of reporting. The type of structure that

is used varies from one company to another, but its main purpose is internal organization.The goal is to increase the communication and delegate authority on a level that is suitable

for the size and needs of the company.


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HIL being a government company has a well organized management structure. The top

level managerial personnel are well qualified for the effective management of the day to

day activities that taken place in this large organization. The administrative level of the

company is made clear in the organization chart.

The top most authority is vested in the chairman who is also managing director of the

company. under him there are three directors and chief general manager, the chief general

manager is in charge of the entire attires of the organization.

HIL has one of the oldest types of organizational structure. Its structure is of line ormilitary type. This type of organization is also known as scalar organization. In line

organization, each department is generally a complete self-sustaining unit. Each

department is under the control of the department head, who is completely responsible for

organizing the department. Above all the department heads, there is a Unit Head to whom

all the department heads are responsible. The in turn Unit Head is responsible to the board

of directors.

HIL is an organization with a narrow span. The members or subordinates are usually 4-8 at

the upper level of the organization and 8-15 or more at the lower levels. The advantage of

narrow span of control is close supervision, close control and fast communication between

subordinates and superiors.


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CHAPTER 7

DEPARTMENTAL PROFILE


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A specialized functional area within an organization such as accounting, marketing,

planning. Generally every department has its own manager and chain of command. Every

organisation is made up of different department. Each department contributes to the

running of the business. The most common departments are:

Production

Marketing & Sales

Finance

Human resource

Information Technology departments

The Udyogamandal unit is divided into 8 departments. Each department is headed by a

department head and an office/ superintendent directs and co-ordinates the activities done

by his subordinate and implement the decisions taken by all his deputies in respective

meetings. The officer reports directly to the General Manager.

The list of various departments in HIL is as follows:

1.

Personal and administration department

2.

Finance and Accounting department

3.

Commercial Department

4.

Production Department

5.

Engineering Department

6.

Fire and safety Department

7.

Quality control Department

8. Research and Development Department


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PERSONNEL AND ADMINISTRATION

DEPARTMENT


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PERSONNEL AND ADMINISTRATION DEPARTMENT

Personal and administration department is mainly concerned with the wholedevelopment of

work force. For any organization employees are hidden assets.Without these employees no

company can work effective. HR department is considered as an indispensable part of

every organization. The personnel andadministration department comes under this

department.

STRUCTURE OF PERSONNEL AND ADMINISTRATION DEPARTMENT IN

HIL

DMP

PEM

WO

ADO AHOAPO

AO(W)


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The Personnel Department is headed the Personnel Manager. HIL draws its strength from

its human resources, and hence the company gives utmost priority for the development

and upgrading of its skilled manpower. It has made numerous efforts and thrust towards

optimum utilization of manpower to built up a healthy work culture and to achieve higher

goals of productivity as well to meet the challenges of the future. The Udyogamandal unit

has a strength of 423 employees out of which 73 employees come under the supervisory/

managerial cadre and 350 under the workmen category under the Industrial Disputes Act,

1947.

The Personnel Department of HIL deals with the manpower requirements of various

departments. All the activities like recruitment, training and development programmes,

performance evaluation, salary fixation, transfer and promotion, welfare activities and

industrial relations are done by the personnel department. They conduct induction

program for the new entrants. The department also plans the various in house training

programs for the laborers. They also deal with the planning of various incentives programs

to be given to the workers. The department deals with issues regarding separation of work

force from the firm.

Some of the other programs done by this department are compensation program,

placements, performance appraisal and record keeping. HIL draws its strength from its

personnel department. Hence the company gives utmost priority to the development and

updating of its skilled manpower. The company regularly conducts training programs for

the workers as well as the officers.

The personnel department also has a welfare officer who is responsible for meeting the

employees social benefits and the general administration department meets requirements

of office staff, stationeries and other necessities. The time officer maintains the

employees attendance and leave details.

Recruitment and promotion

Recruitment of potential employees and promotion of existing ones is done according to

the industrial employment act, 1946.


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Induction

Upon selection, each employee is made to visit every functional department of the unit and

gets acquainted with the kind of work and people, for 3 to 7 days. The employee then

submits a report as to what he learnt to the personnel department. He is then placed in the

relevant department.

Performance appraisal

Every employee is selected on probationary basis for 6 months. On the satisfactory end of

six months he is made permanent. Continuous performance appraisal of employee is done

each six months, quarterly and annually by the head of the department. The criteria forappraisal of workers are:

a) Knowledge of work

b) Job performance and application

c) Attendance and punctuality

d) Behavior and attitude towards colleagues and supervisors

e) Dependability and integrity etc

Employees with unsatisfactory appraisals are sent intimation for relevant training

programme, explaining the scope for improvement.

Training and development

Workers are given semi statutory training according to schedules. In terms of fire, safety

and hazardous waste management, in house training session with external faculties are

conducted which are followed by appraisals from the training officer as well as from the

management.Development programs for officers are conducted during which they are given training

and classes on supervision, managerial procedures, attitudinal changes, getting along with

employees etc.


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relations

The company maintains healthy and harmonious relations industrial relations. Industrial

relations refer to the relationship between employees and employers in the workplace,

usually concerning matters of work, rights and responsibilities of either side.

HIL has 3 trade unions:

a) HILEU (CITU)

b) HILWU (INTUC)

c) HILEO (BMS)

Grievance handling

HIL has an internal grievance redress machinery to handle employees grievances

regarding:

Wages and payments, overtime, leave, transfer, promotion, seniority, work assignment,

working condition and interpretation of service conditions. Disputes of general

applicability or those of considerable magnitude are outside its scope. The internalgrievance machinery meets once in every fortnight. It has committees at two levels

a) Lower level committee

The permanent members are Deputy Personnel Manager who acts as the convener and

deputy finance manager. Rotating officer is the Deputy Manager/ officer of the concerned

department or section.

b) Upper level committeeIt is chaired by the general manager. The permanent members are:

General Manager, Deputy General Manager, Deputy General Manager (P & A) who acts as

the convener. The rotating member is the HOD of the concerned department.

The employee can present his grievance verbally to the HOD. If the employee finds no

solution, or that the decision made is unsatisfactory, he can present a written grievance to

the Deputy General Manager (P & A) through the HOD, which is forwarded to the lower

level committee. Decision by the lower level committee is communicated to the employee


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through deputy personnel manager and a copy is forwarded to the convener of the upper

level committee.

In case the employee finds the decision made by the lower level committee to be

unsatisfactory, he can present his grievance along with the decision made by the lower

level committee to the upper level committee through the Deputy General Manager (P &

M). The decision made is communicated by issuing orders.

The employee can also approach the MD to through proper channels to present the

grievances. HIL, Udyogamandal unit also has a practice of employees venting off their

feelings before the GM every Friday.

WELFARE MEASURES FOR EMPLOYEES:

Medical

Company allows medical reimbursements to the employees and their dependents for

treatment in approved hospitals in Cochin including allopathic, ayurvedic and homeopathic

medical institutions. After verifying the emergency, medical bills from unapproved

hospitals are also considered for reimbursement, though with a certain percentage of

deduction from the bill amount.

HIL maintains a dispensary with a registered medical practitioner and full time nursing

staff with all first aid facilities. First aid boxes are installed at various points within the

plant.

Ambulance and ambulance room

In cases of emergency an ambulance service is also provided by the company.

Health benefits

Annual medical checkup including blood test, ECG etc are conducted for the workers as

well as for the managerial and supervisory staff with the help of an approved medical

institution.


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Group accident insurance

All employees are covered under the group personal accident insurance scheme of the

company, according to their eligibility.

Family welfare benefit

Employees undergoing vasectomy/ tubectomy shall be entitled to one increment plus

special leave for 15 days to ladies and 9 days to gents.

Maternity benefit

90 days maternity leave is permissible for eligible female employees.

Milk supply

All the employees are supplied with litres of milk every day.

All categories of employees are issued uniforms, safety shoes and umbrella

every year.

Certain workmen are issued with mull cloth, washing soap and oil every month

The employees are eligible for bus subsidy of actual bus fare to the nearest bus

stop subject to a maximum of 30 kms.

Conveyance and allowance

Allowances are given to employees using their own conveyance for official purposes and

are as follows:

Cost of 15 litres petrol to employees under industrial disputes act and cost of 37 litres

petrol to managerial and supervisory staff.

Service award

Employees under ID act who have completed 18 years service are awarded an HMT watch

costing not more than Rs 650 with 50% increment.


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Educational benefits

Children educational allowance of Rs.600 per child (maximum 2 children) is allowed to

employees every year.

Employees who are attaining higher qualifications in their line of promotion are eligible for

reimbursement of examination fee and special leave for actual days of examination.

Unit level classes as part of workers education scheme are conducted periodically

under worker teachers with facility of 10 days study tour to other institutions.

HIL township

Company maintains a well structured township with 81 quarters for employees of various

categories

Recreation

HIL club provides entertainment facilities to our employees and their family members. A

volleyball court and a childrens park are also maintained by the HIL club.

Employment on compassionate grounds

In the event of death of an employee while in service, one of his dependent (wife or son/

daughter aged above 18 years) is employed in service.

Special leave and travel allowance

Special leave and TA are allowed to employees who attain competitive success in sports

and games in state/ national levels.

Leave travel concession

Employees are allowed leave travel concession to anywhere in India once in 4 years and

home tour once in 2 years as per rules. Flexibility to encash the leave travel concession

instead is also allowed.

Canteen

Company maintains a canteen with arrangement of meals, tea and snacks to about 550

employees per day including contract employees. The canteen management committee

includes six persons, including three representatives from workers and 3 from managerial

and supervisory staff for controlling the canteen functions.


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Advances

Employees are eligible for getting the following advances according to their seniority and

eligibility.

- House building advance: up to 40 lakhs

- Vehicle advance to M&S staff up to Rs.80000.

- Loan for TV/fridge/scooter ( to employees under ID act) Rs 35000 each to 20 employees

Cycle advance Rs 1000 each to 100 employees

- School advance: Rs 1500 per year to employees who have school going children

General administration

This section takes care of purchases of office stationary, computers and peripherals and

vehicles for the company. It also maintains inward and dispatch of letters and couriers,

telephone network within the company and outwards and administration of companys

guest house

To make the necessary purchases, the intended section submits its requirements

specifications to the general administration section. the section averages the requirements

of every section, invites competitive quotations from vendors. The one with the lowest

quote is selected, and items are brought from them.

Time office

The time office maintains the attendance and leave details of the employees. Salary of each

employee is decided by the payroll section based on the information obtained from time

office.

Every employee has a permanent badge number, which is the basis of the punching system

maintained in the company. HIL has a computerized punching system since 1990, which

records the badge number of the employee and time of his entry/ exits accurately using the

electronic identity card issued to each employee.


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The work shifts of the unit are as follows:

1st shift 12 midnight to 8am

2nd shift 8am to 4 pm

3rd shift 4pm to 12 midnight

Thus, the unit maintains twenty four working hours all week. Administrative section has a

general shift from 9:00 AM to 4:30 PM, with Sundays as holidays. Heads of every

department are non punching staff, as they are liable to be present on duty 24 hours a day.

Employees are entitled to the following kinds of leave:

For every 30 days work, the employee can have two and a half day earned leave. For every

absence in work, the employee loses a fraction of his earned leave.

- Employees can have 10 days full day sick leaves per year

- Employees can have 15 casual leaves per year

- Employees can have extraordinary/ medical leaves, which do not affect his salary.

- Employees can take short leave (2 hours per day), in case of being late for work or for

emergencies.

- Company has 13 days as national holidays

- First and the third Saturdays are holidays for the administrative section

- For overtime credited, the employee can have compensatory leave. Earned leave can be

credited up to 300 days, and can be encashed every 15 days. Similarly, 90 full sick leave

days can be encashed at the time of retirement.

Personnel and time office management system

The personnel and time office management system implemented in the P&A department is

an organized combination of people, hardware, software, communication network and data

resources which collects, transforms and distributes information in the administrative

department. It is a latest add on to the company which effectively collects, maintains,

analyze and report on people and jobs. The system is gradually replacing the traditional

manual work, which is cumbersome and time consuming. |


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Duties and responsibilities

A) Deputy general manager (P & A)

1) Overall in charge of personnel and primary administrative function, supervision and

coordination of activities of personnel welfare including general administration.

2) Manpower planning, recruitment, selection, induction training matters relating to

promotion, grant of annual increment and other matters related to general administration.

3) Responsible for career planning and training of employees

4) Interaction with trade unions

5) Liaison work labor authority and government official or other concerned officer

6) Looking after all legal matters

7) Arranging or updating of statutory license

8) Superintendent providing medical facilities to employees as per status or agreement with

the union.

9) Maintains up keeping of transport vehicles or facilities required for the company

10) Superintendents of welfare activities as per relevant statutes

11) Administration and control of attendance or leave of all employees

B) Deputy manager (personnel)

1) General administration of general service, welfare section, time office, dispensary,

security.

2) Supervising the function of personal department supervising work statutory obligation of

arranging, renewing license etc.

3) Oversee and monitor works connected with renewing arranging license etc.

4) Superintending the running of canteen and welfare of employees

C) Section medical officer

1) Duties provided in the factories act and other relevant statutes.


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D) Personnel officer

1) General administration and coordination of personnel section on the advice of deputy

general manager( P&A)

2) Supervision of fixation of wages, annual increment, stagnation of employee

3) Superintending the activities of general service section.

E) Superintendent (welfare)

1) General superintendence of welfare activities of employees including contract workers

2) Providing returns to statutory bodies about all employees

3) Immediate controller of canteen

F) Superintendent (general service)

1) general superintendence of taking and updating of licenses/ remitting taxes and other

statutory payments as required by law

2) immediate controller of company


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FINANCE DEPARTMENT


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7.2 FINANCE DEPARTMENT

Finance is the study of how investors allocate their assets over time under conditions of

certainty & uncertainty. A key point in finance which affects decisions is the time value of

money which states that a unit of currency today is worth more than a unit of currency

tomorrow. Finance measures the risk us profits and gives an induction of whether the

invest is good or not. Finance can be broken in to three different sub categories. Public

finance corporate finance and personal finance.

Finance is the life blood of every organization. For the smooth running of an organization,

finance is needed. Finance refers to the application of skills and care in the use of money.

Within the present basis of society it is impossible to escape from finance in one form or

another. The company appoint internal audit for inspecting and checking of books of

accounts for reliability and accuracy.

Finance function includes the following:

Long-term asset-mix or investment decision

Capital-mix or financing decision

Profit allocation or dividend decision

Short-term asset-mix or liquidity decision


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Department structure(finance) IN HIL

FINANCE MANAGER

ASSISTANT FINANCE MANAGER

ACCOUT

OFFICER COST

ACCOUT OFFICER

FINANCE

ASSISTANT AO ASSISTANT AO

ACCOUNTANT ACCOUNTANT

ASSISTANT AO

ACCOUNTANT


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The Finance Department is headed by the Finance Manager. He is assisted by the Assistant

Finance Manager, followed by the accounting officer. The accounts officer is again

followed by the assistant accounts officers, accountants and their assistants.

The finance department is divided into 2 sections, namely:

Finance

Costing

Costing section looks after costing records and prepares a cost sheet for each of the enquiry

and order. It also prepares MIS report and budgeting.

The finance section is again divided into 3 sub sections. They are:

Finance and cash

Bills and accounts

Payroll

All sub sections are under the supervision of separate supervisors who are assisted by their

clerks (assistants).

The functions of each sub section of finance section are:

Finance and cash fund management

Cash accounting related to sundry debtors

Sales tax matters

Bills and accounts maintenance

Receipt and payment of bills

Assessing the cost of repairs to plant and machinery ensure all the assets of the company

are insured. Insured assets include stock, plant and materials in transit.

All the employees of the company except apprentices are insured through group personnel

accident insurance scheme.

The function of the payroll section is to deal with

the payment of employees and

punching data


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The payroll system tracks the attendance of each employee, calculates the pay of the

employee as per the attendance, and makes deductions like PF, loans, insurance, leave

balance tracking, bonus and other calculations. It also generates statutory reports like PF

statements. The system tracks shift arrangements of employees. Pay is calculated based on

the attendance of the employee. System deducts all deductions from the total earnings. A

pay slip is printed automatically.

The company classifies employees into 3 different categories:

Permanent

Casual

Apprentices

Permanent employee means an employee confirmed by the management as permanent and

his name is registered in the role of permanent employees. Casual employee means an

employee who is employed for work which is essentially of an occasional nature.

Apprentice means a person whose purpose in joining the service of undertaking is to lean a

trade who is paid during his period of training.

Employees are also classified into six pay grade scales such as W1, W2, W3, W4, W5 and

W6. Managerial cadre comes under grade 6. The lower grade is grade 1.The employees

enjoy monetary benefit as well as non monetary benefits such as

Canteen

Provision for milk

Uniform

Compliments on factory day coasting not more than Rs 1000.

Umbrella per year

Shoes


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Internal audit

Internal audit is done at regular intervals, i.e quarterly by the internal auditor appointed

locally by the Board Of Directors of the company.

Finance Department of the company does the following activities and functions:

1) Consolidating each department budgets and getting the approval of chairman.

2) Preparing the profit and loss account and balance sheet to know the financial

performance of the company.

3) Preparation of plan wise budget

4) Co-ordination with personnel department in functions like disbursement of salary

advance and allowance

5) The other activities of the finance department include preparation of accounts and

making suppliers payments. Company is using its own developed accounting software

based on FoxPro and visual basics.

DUTIES AND RESPONSIBILITIES OF FINANCE DEPARTMENT

1) FINANCE MANAGERThe finance manager handles the maintenance of cost records, fixed assets, registers,

production records and cost audit.

2) ASSISTANT FINANCE MANAGER

The responsibilities of the assistant manager are as follows:

a) Administration of bills section

b) Accounting of suppliers, contractors miscellaneous bills and accounting thereof.

c) Laisoning with statutory auditors

d) Completion of accounts

e) Reconciliation of inter unit accounts

f) Maintenance of records connected with books of accounts such as journals, purchase

journals, cash vouchers, bank vouchers etc.

g) Handling Works connected with insurance

h) Issue of c forms and H forms and dispatch of all cheques and overdrafts.


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i) Payment and maintenance of records connected with work contracts taxes and income

tax in respect of contractors.

j) Tax audit, return in respect of hypothecation to be submitted to head office.

k) Obtaining confirmation of balances from sundry creditors, sundry debtors and security

deposit

3) SUPERINTENDENT OF PAYROLL SECTION

a) Administration of payroll section

b) Handling works connected with preparation of monthly bill.

4) ACCOUNTS OFFICER

a) Administration of finance section

b) Issue of cheques and accounting thereof and bank reconciliation

c) Passing of medical bills

d) Maintenance of cash books, cash records, disbursement of all types of cash payments

and accounting thereof

e) Maintenance of records connected with sales and accounting

f) Laisoning with government auditors

g) Laisoning with all departments in connection with government audit report

h) Persuading of government audit replies

i) Maintenance of records and payments in respect of TA/leave travel expenses.


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COMMERCIAL DEPARTMENT


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7.3 COMMERCIAL DEPARTMENT

DGM

DCM/DCM

SR.ST

NO

AO(P)

Assistant SR.asst

Assit

(s)

AO(sto

re

Store

keeper

helper

SO

ASO

Sr.assit


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COMMERCIAL DEPARTMENT

A Deputy General Manager (DGM) heads this department. This department is divided into

3 sections namely:

a) Purchase

b) Sales

c) General stores.

The manager is the coordinator of the Production and Commercial department. Under him

there is one Commercial Manager. He is the chief of the Commercial Department. Under

the Commercial Manager comes the Deputy Commercial Manager who looks after mainly

offices of purchase section. Under him there are 2 officers, sales officer and material

officer.

PURCHASE DEPARTMENT

Deputy Commercial Manager is the head of this section. Under him, there are 2

superintendents who supervise the activities done by the clerical staff.

Purchase orders are classified into 2. They are:

a) Order below Rs 2 lakhs and

b) Order of and above Rs 2 lakhs

For the purpose of order below 2 lakhs they keep a list of suppliers called vendors list.

From vendors list they choose the appropriate supplier and sends enquiry notes to them. If

they reply positively, i.e. if they have stock of materials which the company intends to

purchase, then the company can send a purchase request to them.

For order of and above Rs 2 lakhs, the company will put tender in newspaper. Filled up

tender forms and earnest money will be received up to a specific date. The tender will be

opened at a particular date and the supplier who is willing to give the material at the lowest

cost will get the purchase request. A separate file is kept against each purchase request.

The supplier who is willing to supply the materials at the lowest cost will get the purchase

order.


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This is the second step in a purchase deal. Payment is done in any one of the following 3

ways:

a) At thirty days credit

b) Documents through bank

c) Advance against delivery

After the materials are delivered to the stores by the supplier, the store issues a material

receiving note and passes it to the purchase section. After receiving the MR note, file

relatedto that order will be closed. After the delivery the stores will inspect the material

and in case of any damages it takes necessary steps to get back the money.

The major items purchased by the company are:

Alcohol, buten dio, chloral, caustic soda lye, calcium tetra chloride, china clay, carbon terla

chloride, castic soda sulphide, carbon di sulphide, chlor pyieopostech, calcium lingo,

suphonate, eplichlora hydrine, diamine, expioxidisded, soyoben oil, hexa chlora, cyclo

pentad lime,hydrated calcium sala cate, hexamine, manganese sulphate, mono chloro

benzene, oleum soda ash, sodium lingo sulphonate, thionye chloride, zinc chloride, zinc

sulphate.SALES AND MARKETING DEPARTMENT

Sales and Marketing Department is another section of the commercial department. This

department functions as per the instructions from the head office. The sales officer heads

the section and the superintendent of sales section, clerks and apprentices assist them in

rendering their duties.

The marketing of the finished products is planned and coordinated by the corporate office

at Delhi. After canvassing the order, the largest order is finalized for each year. The

corporate sales office headed by director (marketing) issues dispatch instructions to the

manufacturing units. On that basis each manufacturing unit schedules its production plan.

All the activities relating to marketing of the product like getting export orders and sales

promotion is done by the head office at New Delhi. Since the use of DDT for agricultural

purpose is banned, now only the orders from the director of health service for malaria

eradication programme is met (NMEP).


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Next action is taken by the purchase section based on the PR forwarded to the purchase

order to selected suppliers who supply the material. The marketing division of the company

is promoting the products of International Panacea Ltd, New Delhi.

The company added several innovative, imported and locally manufactured pesticides to its

portfolio. Now the company provides a complete range of products to the farmers.

The company has a central marketing set up controlled and coordinated by the head office

with regional sales office at Delhi, Hyderabad, Kolkata, Nagpur, Ahmadabad, Coimbatore

and Cochin. For Kerala region the branch office is at Cochin. Also the company has

appointed nearly 50 dealers in Kerala state.

The Udyogamandal sales section mainly does the dispatch service. The procedure is as

follows:

As per the dispatch advice, sales section plans schedule dispatch of finished products and

miscellaneous items. Disposal of by products, miscellaneous and scrap items also is a

function assigned to the sales section. For this purpose the section has to contact different

manufacturing agencies, traders and dealers. The by products are a) waste recovered

sulphuric acid from DDT plant. Miscellaneous items include scrap, damaged cartons, waste

paper etc.

On the basis of availability of stock of finished products ready for dispatch, sales section

instructs empanelled transport to place truck for loading of the material to each destination

for the entry of the truck inside the premises of the factory. Entry permission is issued by

the security at the main gate. The security officer, after checking the trucks and receiving

the tool list permits the trucks inside. Thereafter the truck is weighed and the type weight is

recorded. The truck is then accompanied by a security and parked at the concerned ramp.

Simultaneously, instructions are given to the production department and security showing

the packaging details and the products. The loading crews are also given instruction. After

loading, the production supervisor issues detailed list of products loaded. Then the truck is

again weighed. On the basis of weigh bridge report signed by security, documents are

prepared.


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Firstly, material gate pass is prepared. If the transaction is interstate, form 26 (central sales

tax delivery note) is sent along with the consignment. If the material is excisable, invoice

cum excise gate pass is also raised. A copy for transporter and an extra copy is also sent

along with the consignment. As per the customs and central excise rule, excisable materials

should not be cleared without debiting central excise duty. Central excise invoice shows the

basic price of material, total cost of consignment and sales tax. The document is a proof for

the debit of central excise duty to excise department.

If the transaction is inter unit transfer (stock transfer), then after preparing the above

mentioned documents, debit note is raised and sent to the concerned regional office. If it is

a sales consignment, commercial invoice is raised and sent to the concerned parties.

Immediately after the consignment, the details of dispatch are communicated to the third

party. Information is also sent to the corporate office. Every transaction is recorded on

daily,

monthly and yearly basis and these reports are submitted to the general manager every day

and then communicated to the head office.

GENERAL STORES

The General Stores are managed by the material officer, senior store keeper, junior

assistant and helpers assist him in rendering his duties. The main functions of the general

stores are:

a) Receipt and issue of material

b) Inventory control

In receipt of material, first purchase request is raised. This may be done in 2 days.

1) Upon the request of the user, stores raise PR. This is because the user can only access

the requirement of some average moving material used by them. But the PR will be located

through stores only.

2) Stores raise PR for maximum moving item. In the case of such items, the annual

requirements per year is forecasted based on production forecast and communicated to the

stores at the beginning of the year.


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But both the PR will be routed through stores only.

Next action is taken by the purchase section based on the PR forwarded to purchase

section. They place purchase order to selected suppliers who supply materials within due

date. After the material is supplied to the store by the supplier, store issues material

receiving notes to the purchase section. The stores also inspects materials arrived for any

damages or shortage of materials. In such case the store initiates procedure to get the

money back. This may be done either from the carrier in which the materials have arrived

or the supplier or the insurance company. A copy of inspection report and material

receiving note are also sent to the bill section in accounts department.

Inventory control means controlling the stock of materials so as to avoid unnecessary

stoppage of production at minimum cost. Non moving items are removed at the earliest

opportunity. If the materials needed by the plants are out of stock, the production at the

plant will be stopped. The duty of the stores is to keep the materials at the right place.

Materials are purchased based on production schedules. Otherwise the quality assessment

of materials purchased will be difficult. Maintenance materials will also be available at the

store at anytime

DUTIES AND RESPONSIBILITIES OF:

A) COMMERCIAL MANAGER AND SUBORDINATE OFFICERS IN

COMMERCIAL DEPARTMENT1) Commercial manager is the head of the department. He is assisted by the deputy

commercial manager and other subordinate officers. As per the present set up sales section

and general store are only under his control.

2) Sales officer is the immediate supervisor of the sales section. He is responsible for the

activity in sales section. He coordinates the activities in sales section. Central excise and

customs related to sale of unit products, transfer of stock of products, export if any of the

products,

works connected with dispatch of material and other related work regarding sales of waste

materials etc.


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3) Material officer is the immediate supervisor of the general stores. He reports to the

commercial manager. Material officer is the custodian of material received in the company

for various purposes, its inspection either by himself or by concerned officers of the user

section, up keeping of materials collection of material from transporting agencies as per

LR/RR as per purchase order, issue of materials on requisition raised by concerned

departments. Replenish materials as required by norms fixed by the company.

B) PURCHASE SUPERINTENDENT

1) The Purchase superintendent is in charge of the section and he is assisted by different

assistants.

2) He is to allocate work to his assistants

3) He has to prepare the tender document for different purchase incorporating the technical

requirements finalized by the user department.

4) Scrutinizing the tender prepared by the assistants, approving and forwarding to deputycommercial manager for final approval

5) Checks each and every file forwarded to the deputy commercial manager so that

proposals are in line with the laid down conditions of purchase by the company and also to

ascertain that the proposals are in line with the CVC guidelines

6) Follows up with the assistants for speedy implementation of different activities

7) He is the custodian of the registers and records maintained in the purchase section for

different activities

8) Follows up with different suppliers so that the ordered materials are supplied in time

specified in relevant orders

9) He is to ascertain the commercial condition laid down for different purchases and

contracts in the section


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PRODUCTION DEPARTMENT


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7.4 PRODUCTION DEPARTMENT

Department structure (production)

General manager

Production manager

Dy . General manager

Dy.prdctn

mnger

Dy.prdctn

mnger

Dy.prdctn

Mgr

Dy.prdctn

mgr

Dy.Te

ch.

Plant in

charge

Plant in

chargePlant in

charge

Plant in

charge

Shift

production

supervisor

Shift

production

supervisor

Shift

production

supervisor

Shift

production

supervisor

Operators& helpers Operators& helpersOperators& helpersOperators& helpers


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PRODUCTION DEPARTMENT

This department is headed by General Manager under him comes the Production Manager.There are 3 deputy production managers. All the functions are related to the production

plan of the company. The production plans for each product is different.

The production is concerned with creation of a product or service required to satisfy

customer needs and wants. In any business that supplies a product or service, its quite

obvious that the activities of production system must be closely related to the customers

demand as reflected in the continuous flow orders.

The main function of Production Department is to produce the finished products to meet

the sales orders. The department also takes care to provide training to operators. It is also

conscious of pollution control and environment protection. A centralized effluent

treatment plant in which the entire quantities of liquid effluent generated from all plants

are treated and discharged as per standards.

Effluent treatment system was put up based on the process designed by NationalEnvironment Engineering Research Institute (NEERI). The equipment design engineering

and erection was done by M/s Richardson and Cruddas (1972)Ltd., a Government of India

enterprise. HIL has periodically incorporated several additions and modifications to the

system. Constant vigil is exercised in ensuring the quality of the treated effluents

discharged by analyzing the samples. HIL has its own quality control laboratory which is

approved by the state pollution control board. A portion of the treated water is reused and

balance quantity only is discharged.

The plant in charge supervises the plant entrusted to him and reports to the deputy

production manager of the plant who in turn reports to the Production Manager. So far no

plant operates at its full capacity. Production is done only to meet the sales orders.


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Production is effective when it operates primarily to satisfy customer demand particularly

relating to quality, quantity, price and above all timing of delivery as scheduled in orders. It

must permit production activities to operate in economical and efficient manner because

cost of production is a vital factor in having the market competition. HIL insecticides are

effective in keeping up their unique position in market because of its style of production.

The main products of the company are as follows:

A) D.D.T (Dichloro Diphenyl trichloroethane)

The raw materials used for its production are benzene, chlorine, specially denatured ethyl

alcohol and sodium hydroxide.

The steps involved in the manufacturing process of DDT are:

a) Preparation of mancozeb

b) Preparation of chloral alcoholate

c) Preparation of chloral from chloral alcoholated) Condensation of mancozeb and chloral

e) Washing, distillation of mancozeb and casting DDT.

DDT is produced by the condensation of monochloro benzene (obtained from chlorine and

benzene) with chloral (obtained from chlorine and alcohol) in the presence of oleum.

The reactions are complex and the chemical used are most corrosive ones. Therefore the

manufacturing processes are highly sophisticated and equipments used are most modern

and are of special material construction.

Technical DDT is further processed into water dispersible powder (WP) by particle size

reduction after mixing with inert like china clay and wetting and dispersing agents. It is

this formulation that is used in the malaria eradication programme of NMEP.

The technical plant in Udyogamandal unit has a capacity of 1344 TPA of DDT (technical)

and 2688 TPA for DDT WDT. DDT is not used in agriculture and is used extensively for


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the control of malaria and kala azar diseases. DDT is marketed in the brand name HILDIT.

DDT is now only sold for controlling vector born diseases.

B) DICOFOL

Manufacturing process:

Dicofol is produced by the chlorination of DDE followed by hydrolysis of the chloro

product. The technical product is formulated as 18.5% EC for use in agriculture. Dicofol

is also active in the protection of many fruits and vegetables from all types of mites

species. The plant has a capacity of 150 TPA for Dicofol (technical) and 600 KL per

annum for EC formulations. Both the technical and formulation plants are based on the

technology developed, scaled up and optimized by the companys in house Research and

development.

C) MANCOZEB

Mancozeb is a coordination complex of manganese ethuylenebis dithiocarbonate. It is a

protective leaf fungicide used for the control of a broad range of plant diseases and also

for seed treatment. Being an environment friendly fungicide, it is effective against almost

all types of fungi. Mancozeb is expected to have excellent market potential in both

domestic and international circuits.

Manufacturing process:

Mancozeb is manufactured from carbon disulfide, ethylene diamine, manganese and zinc

salts. Initially the plant capacity is 1000 TPA for Mancozeb (technical) and 1800 TPA for

formulation with provision for expansion at a later stage. The plant is based on the in

house technology of HIL by the Research and Development division.

WATER TREATMENT PLANT

The company has a water treatment plant 4 kms away from the company. Water is taken

from the river Periyar and is processed and used for the production process. Water

treatment plant has 20 staffs directly recruited by the company.


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TREATMENT PROCESS:

Water from the river is pumped to the settlings tank and the clarifier settling process is

done. Certain chemicals like alum, lime and chlorine is added and the water is used.

Settled water is pumped to another tank and is used to prepare steam in boilers and is