INDUSTRIAL STUDY ON DARANGADARA CHEMICAL

WORKS

INDUSTRY BACKGROUND

The chemical industry in one of the oldest domestic industries in India, contributing significantly

to both the industrial and economic growth of the country since it achieved independent in 1947.

The chemical industry comprises the companies that produce industrial chemicals. It is central to

modern world economy, converting raw materials into more than 70,000 different products.

Chemical industries in India are worth US$ 28 billion and these industries are responsible for

12.5% of the country's industrial production. Chemical industries are referred as keystone

industries because of the way the rest of the manufacturing sectors relay only chemicals. The

largest corporate producers worldwide, with plants in numerous countries, are BASF, Dow,

Degussa, Eastman Chemical Company, Shell, Bayer, INEOS, ExxonMobil, DuPont, SABIC and

Mitsubishi, along with thousands of smaller firms.

History of chemical industry

Since the Industrial Revolution, we have had many examples of how new discoveries have

translated into greater economic growth for the world. Before that era, there was no real concept

of growth, except by conquest, plunder, or exploration. Most people understood that they were

born with a particular status in life. It is no coincidence that Adam Smith's The Wealth of

Nations appeared in 1776, at the beginning of the modern era, and we are still indebted to him

for his insight into an economic system that could accommodate and build on this revolution. We

must not lose sight of the miracle that growth rates since then have raised remarkably, even

though the world's population was growing rapidly. Increasingly, jobs have been found for this

growing population at an amazing rate, albeit unevenly in different countries.

Although the early inventions of the Industrial Revolution were not scientific but largely

empirical technology, later on, and especially in the twentieth century, science has been essential

to modern technologically based industry, and thus crucial to the great economic growth

described earlier. The science of chemistry originated in the eighteenth century. The first truly

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scientific chemist was Antoine Lavoisier, who systematically measured and studied chemical

reactions. Unfortunately, he was guillotined by that other Revolution in 1794, not because of his

chemical knowledge, but because he was a tax collector for the Ancien Regime in order to earn a

living. It was not the only time politics and science have collided-think of Galileo and the

Inquisition, and Lysenko in the Soviet Union. In fact, history records that Robespierre and Hitler,

at different times and in different circumstances, both said in effect that their revolution had no

need of scientists!

In the 1830s and 1840s, the British had the world's dominant chemical industry, which was

focused on production of inorganic chemicals. Inorganic compounds are those taken from the

earth, such as salt and minerals, and processed into useful products employed directly or used in

further processing. One leading set of products is the alkalis, such as lime, soda ash, and caustic

soda, used extensively in textiles, glass making, fertilizers, etc.; another includes acids such as

sulfuric and nitric, which are often used in tanning, textiles, dyeing, and a myriad other

applications. Alkalis and sulfuric acid produced in large quantities are commonly referred to as

heavy chemicals. Currently, organic chemicals such as ethylene, benzene, and propylene, which

are produced in large quantities, are more typical examples of heavy chemicals.

The development during the 1940s and 1950s of a group of independent developers and sellers

of process technology, known as specialized engineering firms (SEFs), accelerated the

international transfer of technologies and planted the seeds of the competitive challenges faced

by the U.S. and European firms in the 1960s and 1970s, especially by oil firms. But the

technological response of these firms, especially that of U.S. firms in the 1980s and 1990s, to

these competitive challenges has involved the development of new variants of existing products,

customized to the needs of specific users, and greater integration between products and process

innovation. These steps have not only eroded the markets for the services and technologies of

SEFs but also reduced investment in basic research.

Overall, however, the relative positions of the major industrial producers have not changed much

in the past twenty-five years. Indeed, the major change has been the increase in chemical

production outside the leading industrial countries. In 1959 the United States, Japan, and

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Western Europe accounted for virtually all chemical exports. By the 1990s their combined share

had fallen to two-thirds, with the rest coming from Asia, particularly South Korea and Taiwan,

Eastern Europe, and the Middle East. Much of the capacity addition took place during the 1970s

and especially the 1980s.

Evolution of chemical industry

The evolution of the chemical industry has been driven by advances in technology and by the

institutions that have facilitated the growth of new markets. In addition to the conventional

market growth in the form of demand from developing countries, the evolution of the chemical

industry also has been profoundly affected by the growth of a market for technology and a

market for capital. When technology becomes widely available, albeit at a price, it can cease to

be a decisive source of competitive advantage, be it for firms or for countries. Instead,

competitive advantage must be sought elsewhere, in cheaper inputs or in closeness to markets.

Similarly, a global market for capital gives shareholders the opportunity to look for the best

returns, putting managements under pressure to cut costs and improve shareholder value. In the

chemical industry, technological superiority was often a key component of competitive

advantage, and the clear relationship between advances in chemistry and chemical engineering

had led the market leaders to fund a substantial amount of basic research. Developments in the

industry in recent years have weakened this incentive. These developments have tended to raise

the payoff to applied, business-driven research relative to more basic and fundamental research.

The industry has responded by forming industry-wide research initiatives in specific areas and by

interfere joint ventures.

Following the big technology push in the industry during the 1950s and 1960s, technology

diffused more widely than it ever had before. In addition to the efforts of SEFs, increased

competition and slower demand growth lowered the payoffs to traditional types of innovations.

Commercialization became more expensive and required ever more sophisticated knowledge of

customers and the market. Faced with overcapacity, the industry, restructured. The drive to

reduce cost dominated the initial restructuring phase, driven in part by the relentless pressure

from shareholders and their representatives. Major realignments of the product portfolios of

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many firms followed, with many mergers, divestitures, and acquisitions and the rise of entirely

new firms in the industry.

During this phase, many firms cut down on R&D and refocused R&D expenditures on shorter-

term projects and away from more fundamental research. In the past couple of years, there are

some indications that the industry may be entering a new phase of technological change, and

R&D spending appears to be picking up also, as well as increased activity in transborder

acquisitions in addition to domestic ones.

U.S. chemical industry began to experience its competitive "crisis" in the late 1960s, well before

most other U.S. industries encountered growing competitive pressure from foreign sources and

well before the onset of the "oil shocks" of the 1970s that affected prices for the industry's key

raw material. Slower growth for its dominant products, including polymers, along with the

growth of production capacity offshore, led many leading U.S. chemical firms to pursue

diversification programs during the 1970s, with mixed results. In the 1980s, a far-reaching

restructuring in the industry focused firms on a narrower line of products and processes, which

contributed to improved results in many U.S. chemical firms. This restructuring process began

earlier and has proceeded further in the U.S. chemical industry than in those of continental

Europe and Japan.

In the U.S. there are 170 major chemical companies. They operate internationally with more than

2,800 facilities outside the U.S. and 1,700 foreign subsidiaries or affiliates operating. The U.S.

chemical output is $400 billion a year. The U.S. industry records large trade surpluses and

employs more than a million people in the United States alone. The chemical industry is also the

second largest consumer of energy in manufacturing and spends over $5 billion annually on

pollution abatement. In Europe, especially Germany, the chemical, plastics and rubber sectors

are among the largest industrial sectors. Together they generate about 3.2 million jobs in more

than 60,000 companies. Since 2000 the chemical sector alone has represented 2/3 of the entire

manufacturing trade surplus of the EU. The chemical sector accounts for 12% of the EU

manufacturing industry's added value.

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The chemical industry has shown rapid growth for more than fifty years. The fastest growing

areas have been in the manufacture of synthetic organic polymers used as plastics, fibers.

Historically and presently the chemical industry has been concentrated in three areas of the

world, Western Europe, North America and Japan (the Triad). The European Community

remains the largest producer area followed by the USA and Japan.

The traditional dominance of chemical production by the Triad countries is being challenged by

changes in feedstock availability and price, labor cost, energy cost, differential rates of economic

growth and environmental pressures. Instrumental in the changing structure of the global

chemical industry has been the growth in China, India, Korea, the Middle East, South East Asia,

Nigeria, and Brazil.

Chemical industry in India

India was a net importer of chemicals in early 1990s, but has now become a net exporter due to

reduction in Imports because of implementation of many large scale petrochemical plants like

Reliance etc. and also because of tremendous growth of exports in sectors like bulk drugs and

pharmacy, pesticides, dyes and intermediates. The wide and diverse spectrum of products can be

broken down into a number of categories, including inorganic and organic chemicals, drugs and

pharmaceutical, plastics and petrochemicals, dyes and pigments, fine and specially chemicals

pesticides and agro-chemical, and fertilizers.

The Indian pesticide industry had advanced significantly in recent years, producing more than

1000 tones of pesticides annually. India is the 13th largest exporter of pesticides and

disinfectants in the worlds and in terms of volume is the 12th largest producer of chemicals.

Some of the chemical companies in India are :-

Amichem Corporation

Arichem group

Associated Agencies

Bharat Petroleum

CAE Business Systems

Chemical and Alkali Merchants' Association (CAMA)

Chemo India

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Colour- Chem. Limited.

D.K.Pharma Chem. Pvt Ltd

Finornic Chemicals

Galaxy Surfactants

Ganesh Trading

GMM Pfaudler Ltd

Gujarat Alkalies & Chemicals

Gujarat Chemicals

Heranba Industries Ltd

Indian Petrochemicals Corporation Limited (IPCL)

Karnavati Chemicals

Kopran Pharmaceutical Ltd

Kumar Industries

La NOVA Chem

Loba Chemicals

Mahalaxmi industries

Mahavir Expochem Limited

MegaVisa

Morepen Laboratories

National Organic Chemical Industries Ltd

Prima chemicals

Ram Nath & Co

Reliance Industries Limited (RIL)

Rishabh Colours Pvt. Ltd

S.A.Chemicals

Salvi Chemicals

Saraf Chemical Industries

Satya Cashew Chemicals

Sears Phytochem

Sood Group Of Companies

Sresan Pharmaceuticals

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Strides Arcolabs

Sunlite Lumiglo products Co

Surya Pharmaceuticals

Techno Drugs

Unitop Chemicals Pvt Ltd

Varuni Chemicals

Va-Sudha Chemicals Pvt. Ltd.

The chemical industry in India is poised for explosive growth in the coming years. India’s

population has grown nearly as large as that ofChina , with its consuming middle class

accounting for about a third of its population. Disposable income inIndia is rising, potentially

driving growth of chemicals consumption at exponential rates.India’s GDP growth exceeded 9%

for the last fiscal year, fueling double-digit growth of its chemicals industry.

India’s government has set in place policies and special economic zones to promote investment

in its petrochemical sector, and several key domestic companies have unveiled ambitious

expansion plans for the next few years.

The Indian Chemical Industry Outlook is the only chemical conference inIndia organized

specifically to address a broad range of issues impacting the industry. The conference will take a

look at different segments of the Indian chemical industry, and explore the growth opportunities

and challenges in each segment.

Chemical industry’s 2010 outlook

Chemical producers have had a wild ride in 2009. The year started off with companies facing

abysmal demand and sorry prospects for profitability. However, meaningful cost-cutting,

inexpensive North American natural gas, and relatively strong demand in emerging markets--

particularly in Asia--have improved the picture during the course of the year. Going forward,

improved cost structures should help to improve profitability, but companies will still need to

deal with relatively weak near-term demand in developed countries and a wave of new supply

coming on line in the Eastern Hemisphere. Chemicals players will likely continue to right size

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commodity chemical assets in mature markets, seek access to low-cost feedstock in areas such as

the Middle East, and look for exposure to above-average demand growth in Asia. In response to

the wave of new capacity coming on line, we expect chemical firms to continue restructuring

assets in North America and Europe. Meanwhile, firms will look to partner with resource-holders

in the Middle East to gain access to low-cost feedstock. Finally, exposure to more rapidly

growing markets--particularly in Asia--remains an important aspect of producers' near- and long-

term growth prospects, especially in light of a demand picture that is still relatively weak within

developed markets.

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ORIGIN AND PROFILE OF THE COMPANY

The DCW Limited is an India-based company. The Company operates as an integrated chemical

manufacturing company. The Company has three business segments: polyvinyl chloride (PVC),

chloro alkali and soda ash. Its products include poly vinyl chloride by suspension, caustic soda

and soda ash. The Company's subsidiary is, DCW Pigments Ltd. Its other subsidiaries include

Double Dot Finance Ltd., Sahu Brothers Pvt. Ltd., Kishco Ltd and Crescent Holdings Pvt. Ltd.

Darangadara Chemical Works story goes back to 1925 when the foundation stone of India's first

Soda Ash factory at Dharangadhra -- a small principality in Gujarat in West India -- was laid.

The plant was taken over in 1939 and run under the name Dhrangadhra Chemical Works. To

wish the venture luck, the company adopted the horse shoe as their corporate logo, which stands

till today, and is widely recognised as a symbol of excellence. It is said that every oak begins as

an acorn. The process of growth received a major impetus in 1959 with the commissioning of the

chlor-alkali plant at Sahupuram in the southern state of Tamilnadu. At that time, the area was

completely barren. Today this complex has made its mark on the chemical map of India as well

as the world.

DCW has certainly come a long way since its small beginnings and is one of India's soundest and

most respected chemical companies.

"Salt is the essence of life. It is the starting material of DCW's basic products."

Headquarters - Mumbai Area, India

Industry - Chemicals

Type - Public Company

Status - Operating

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Company Size - 2,300 employees

2009 Revenue - $244,040,000

Founded - 1939

Website - http://www.dcwltd.com

Mission

"It is our endeavor to Manufacture and Supply quality products and develop co-operation and

understanding through Trade and Commerce."

Business profile

Incorporated in 1939, DCW was taken over by the present promoters led by the late Sahu

Shriyans Prasad Jain. The company manufactures soda ash, caustic soda, PVC resins, soda

bicarbonates, trichloroethylene, synthetic rutile, titox, utox, bromine, bromide and a few other

chemicals. The company had also introduced a range of home products like packaged spices,

flour and iodised salt. However, later, it sold its Captain Cook brand of home products to

International Bestfoods. The soda ash plant is at Dhrangadhra, whereas the chlor-alkali and PVC

plants are located at Tuticorin in Tamil Nadu. The company was incorporated in 1939 as

Dhrangadhra Chemical Works Ltd. In 1987, the name was changed to the present one. The

company`s entire shareholding in DCW Home Products Ltd has been transferred to Crescent

Finstock Pvt Ltd following a Gujarat High Court approval. After this, DCW Home Products`

best-selling Captain Cook brand has been sold to Corn Products Company, a 74% subsidiary of

the US-based Bestfoods Inc.

DCW IS A DIVERSIFIED manufacturer of basic chemicals, such as:

Caustic Soda

Liquid Chlorine and Chlorine based products such as Trichloroethylene and HCL

Upgraded Ilmenite or Synthetic Rutile

Yellow Iron Oxide

PVC Resin

Soda Ash

Ammonium bi-carbonate

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DCW is an industry pioneer with a long track record in its markets and has a successful record in

developing downstream and related products. Its competitive position is enhanced by the

diversity of its products. DCW has always focused on cost control and developed value-added

products from waste generated from its production process and export-oriented products like

Upgraded Ilmenite and Pigment grade Yellow Iron Oxide.

DCW operates in three major business segments i.e. Soda Ash, Caustic Soda and PVC. While

manufacturing Caustic Soda we get Chlorine as a byproduct. Hence any caustic soda

manufacturer has to make arrangements for chlorine utilization either by way of selling to other

users or should have in-house utilization of chlorine to operate the caustic plant to its capacity.

Also, as chlorine cannot be transported over long distances due to its hazardous nature one either

needs to establish the Caustic Soda Plant near its user base or should have in-house utilization of

chlorine.

DCW has always believed in manufacturing value-added products from the byproducts

generated from its process. In line with this philosophy, we manufacture value added products

like Synthetic Rutile and Tri-chloro ethylene from the chlorine generated from our caustic soda

plant.

DCW uses 60-70% of chlorine in-house. At present, available chlorine is sold in the open

market. However, we are planning to increase in-house consumption of chlorine to almost 90%+,

by manufacturing value-added products.

Any waste generated in a chemical manufacturing process contains some valuable product.

Hence, the bottomline of any chemical manufacturer depends on how best they are able to

generate commercially viable products from the waste. DCW has a very strong R&D team which

works towards producing commercially viable products out of waste. For example, our R&D

team has successfully developed a product called Iron Oxide Pigment from the waste.

DCW imports VCM on annual contract basis from Mitsui & Co., who has been our suppliers for

the last 25 years. The raw materials for Soda Ash are salt and limestone. Part of the company’s

salt and limestone requirements are met from the company’s own salt fields and captive

limestone mines and balance is procured from outside sources available in local markets.

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For Caustic Soda, the main raw materials are Salt and Power. The company has its own captive

salt fields which meet about 60-70% of salt requirements while the balance salt is purchased

from the open market. We are working on increasing our salt production capacity.

The price of VCM is highly fluctuating. However, prices of finished product PVC also moves in

tandem and hence there is always a delta between the price of raw materials and finished goods.

For other raw materials like salt and limestone, the prices are more or less stable. DCW meets its

power requirements from its in-house captive power plants in all its divisions, which helps the

company generate quality power and at a viable cost.

DCW is an industry pioneer with a long track record in its markets and has a successful record in

developing downstream and related products.

Its competitive position is enhanced by the diversity of its products.

DCW has focused on development of value-added and export-oriented products like Upgraded

Ilmenite and Pigment grade Yellow Iron Oxide.

DCW has embarked on an ambitious project for the manufacture of Ferrite Grade Iron Oxide

with a capital expenditure of around Rs. 1 billion.

DCW Limited., is an industry pioneer with a strong presence in the Chlor Alkali chemicals,

Synthetic Rutile and Poly Vinyl Chloride business segments. Dharangadhra chemical Works was

incorporated in the year 1939 to take over India's first Soda Ash factory at

Dharangadhara in Gujarat its ownership was acquired by Padmabhushan late Shir Sahu Shiryans

Prasad Jain in 1949. Due to its diversified and modernized operations the company Public

Limited Company manufacturing a wide range of chemical products. In 1987, in view of its

more diverse operation, the name of the company was changed to DCW Limited. The company

has two manufacturing units one at Dharangadhra Gujarat state and another one at Sahupuram in

the state of Tamilnadu. DCW has a successful record of developing downstream and related

products.

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Quality, health, safety and environmental policy (QHSE)

At DCW, Quality, Health & Safety and Environmental concerns are integral to its business of

manufacturing Chlor Alkali Chemicals, Synthetic Rutile, PVC Resin and derived value added

products supported by utilities including Captive Power Generation.

In pursuit of the above, Sahupuram Works is committed to:

Comply with all applicable legal and other requirements connected with Quality,

Occupational Health & Safety and Environmental matters;

Conserve and optimally use natural and other resources by adopting relevant technology

and operational practices; implement measures to maintain safe working and

occupational health standards; and provide products & services leading to customer

satisfaction;

Create awareness on Quality, Occupational Health & Safety and Environment by

teamwork, training and meaningful communication of the QHSE Policy to employees,

persons working on behalf of the organization and relevant interested parties;

Continual improvement in Quality, Occupational Health & Safety and Environmental

performance including prevention off pollution, through planned Objectives & Targets.

Continuous prevention of pollution, injury & ill health through planned Objectives &

Targets.

Social Conscience

DCW BELIEVES THAT it has obligations not only to itself and its shareholders, but to the

citizens of India at large. Towards fulfilling these obligations, DCW has undertaken a

considerable amount of social work at both Dhrangadhra and Sahupuram in the area of education

and social up liftmen.

At Dhrangadhra, DCW contributes substantially to the S.P. Jain Arts and Commerce College,

and the Panjarapole Trust which maintains old cattle. In addition, DCW maintains a club for the

welfare of its employees and runs a primary school at the labor colony. The company also makes

contributions to the Kidney Disease Research Centre for hospital patients and to the Tiffin Seva

Mandal for feeding the poor.

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At Sahupuram, DCW runs an English medium school (right), maintains a full fledged hospital

facility, runs a recreation club and has a unique scheme called "Own your own housing" - by

extending loans to employees for construction of their own houses. The company also subsidizes

a co – operation run canteen for all workers. Various social welfare activities are undertaken

from time to time in the area. DCW, Sahupuram, has the distinction of having a charter of the

Indian Society for Training and Development to impart regular training programmes and

arranging guest lecture

DCW has also promoted the S.P. Jain Institute of Management and Research, a leading

management institute in Bombay, offering post-graduate degrees in management. The institute is

recognised as one of the best in India. DCW has also contributed towards the S.P.Jain Sadhana

School for the mentally handicapped in Bombay. Both institutions have been named after the late

founder - Chairman of the company, Mr. Shriyans Prasad Jain.

DCW firmly believes that the business of business is not only business, and hence it contributes

towards improving the quality of life of its people by active participation in social welfare

activities.

Research and development

STAYING AHEAD IMPLIES being constantly on the move, keeping track of technology and

market needs. Something that DCW lays a great deal of emphasis on, with a fully fledged

Research and Development Centre at Sahupuram. This R&D Centre is recognized by the

Department of Scientific and Industrial Research of the Government of India.

Some of the significant efforts undertaken by our people:

1. The bench scale process developed by Wah Chang for beneficiation of ilmenite ore was

scaled up and engineered entirely by DCW in the first plant of its kind in Asia. (1970)

2. Development of a product called "Utox" from waste liquor of digesters in the ilmenite

plant and used as a partial replacement to Titanium Dioxide. (1978)

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3. Replacement of graphite anodes with metal anodes in the Caustic Soda cells for the first

time in India - resulting in substantial energy savings. (1979-82)

4. Covering for the first time, 205 acres of sandy waste land with polyethylene to avoid

seepage of concentrated brine, increasing salt production by 60%. (1979-83)

5. Improvisation of recipes, entirely in - house, resulting in a capacity utilization of 180 %

in the PVC plant. (1984 - 86)

6. Process of de-mercerization of mercury - bearing water effluent developed for the first

time by DCW. (1985)

7. Development of a new product called "Weldgrade beneficiated ilmenite" developed by

DCW for the welding rods industry. (1985)

8. In collaboration with CSIO, Chandigarh, a process for current monitoring based on

microprocessors was developed in the Caustic Soda Cells to result in energy saving of

125 KWH per ton of Caustic Soda. (1986)

Apart from these, in 1992-93, DCW also perfected the production of high purity synthetic retile

wherein the purity of TiO2 is over 95%. The product has low silica and alumina content and

radioactive matter that is much below the normal levels. The R&D section at DCW has also

developed Synthetic Iron Oxide pigment using leach liquor - a waste from the limonite plant.

The developmental work commenced in 1992 and the pilot plant was commissioned in 1993.

This is a prime example of DCW being a forerunner in converting waste into wealth and in its

contribution towards pollution control.

Certifications

The ISO-9000 is the hallmark of a good quality - oriented system for suppliers and manufactures.

It identifies the basic principles underlying quality and specifies the procedures and criteria to be

followed to ensure that what leaves the manufacturer / suppliers' premise fully meets the

customer's requirements. The ISO- 9000 series of standards are basically quality assurance

standards and not product standards. ISO-9000 spells out how a company can establish,

document and maintain an effective and economic quality control system which will demonstrate

to the customer that the company is committed to quality.

DCW Ltd., is certified with:

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ISO 9001 for Certificate of Quality Management System

ISO 14001 for Certificate of Environment of Management System

OHSAS 18001 for Occupational Health and Safety Management System

The different types of plant and machinery along with the products manufactured are -:

Plant/Facility Installed Capacity Input Output

Salt Pans 1,40,000 tpa Sea Water Industrial Grad Salt for capative consumption

Caustic Soda Caustic soda – 60,000 tpa HCL Acid–

90,000 tpa

Sodium Chloride (Salt)

Caustic Soda Lye, Caustic Soda Flakes,

HCl Acid

Liquid Chlorine 30,000 tpa Gaseous Chlorine from Cell House

Chlorine

Trichloro ethylene 5,400 tpa Calcium carbide and Chlorine from LCP

Trichloro ethylene

Llmenite 25,000 tpa Llmenite, Ore Cokefines and HCl from Caustic Soda

plant

Beneficiated IImentite

Ultox 1,200 tpa Titanium di oxide fines

Utox pigments

Iron Oxide 450 tpa Waste Leach Liquor from llmenite plant

Aqueous Ferric Chloride

Paint 300 ltrs per shift Utox Colored pigments and other solvent additives

Enamel paints

Vinyl Chloride Monomer storage

installation

5,600 Mt Imported material

Poly vinyl Chloride 80,000 tpa VCM PVC Resin

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Resin

Power Plant Coal based 45 MW Oil based 36 (6*6)

MW

Low Sulphur Heavy Stock Oil

Electricity & Steam for captive

consumption

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ORGANIZATION STRUCTURE

Organization

An organization is a social arrangement which pursues collective goals, which controls its own

performance and which has a boundary separating it from its environment. It is wide area where

a humpty number of people work for a common goal. It consists of various departments and

activities. It is not a single person who runs the organization. It is a place where people share

their views, launch new products, work on new projects etc. It can be either products or services.

It depends on the nature of the company’s business.

ORGANIZATION STRUCTURE

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President

Vice –President (s)

G.M G.M G.M G.M G.M G.M G.M

D.G.M

G.M G.M D.G.M

D.G.M

D.G.M

D.G.M

Manager Manager Manager Manager Manager Manager Manager

The company has the following departments with a wide number of functions

Production department

Financial department

Human resource department

Marketing department

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PRODUCTION DEPARTMENT

Introduction

The Product Profile of DCW includes the production of a wide range of chemical products. At

Dharangadhara, it produces:

1) Soda

2) Ammonium Bicarbonate

3) Liquid Bromine

4) Bromide

At Sahupuram branch, it produces following chemical products:

Caustic soda

Liquid Chlorine

Trichloro ethylene

Hydrochloric acid

Synthetic Retile

Yellow iron oxide

Ferric chloride

Enamel paint

PVC Resin

PRODUCTS AND INDUSTRIAL USAGE

S.No PRODUCT INDUSTRIAL USAGE

1 Common Salt (Nacl) Caustic Soda and Soda Ash industries manufacturing

chlorine, Hydrochloric acid and other Sodium

Compounds.

2 Caustic Soda (NaOH) Aluminum, Rayon, Paper, Soap, Vanaspathi,

Petroleum products, Dyes and Textiles.

3 Liquid Chlorine (Cl2) Manufacturers of Trichloro ethylene, Petrochloro

ethylene, Refrigeration, Pesticide, Paper and pulp.

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4 Hydrochloric Acid (HCL) Chemicals, Acid pickling, Metal cleaning, Refrigent,

Fumigant.

5 Trichloroethylene (C2HCl3) Metal degreasing, Dry cleaning, Refrigent, Fumigant.

6 Sodium Hypochlorite Bleaching purpose.

7 Upgraded Beneficiated

IImenite (synthetic Rutile)

Pigments, Welding electrodes, Paints, Titanium

sponge.

8 Utox & yellow Iron Oxide Paint Industries.

9 Ferric Chloride Effuent water sewage, Textile, Etching and

Chlorinating.

10 Poly Vinyl Chloride Resin Pipe industry, Automobile & Sanitary fittings, Wires

and Cables, Bottles, Containers, Transparent Films

and Flexible hoses.

Production SWOT analysis

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S - STRENGTH

The production is very high compared to the previous years.

A new product is introduced in each five years gap.

The production level is increased day-by-day.

They give the contracts to produce the products.

All the products are exported.

The increased production of products has the warehouse facility to store them.

Seawater is the major raw material, which is very nearest to the firm, because it is

situated near the seashore.

If no products are exported, at that time the production level is not stopped, production is

maintained the same level of growth.

Other manufacturing companies need these chemical products so the production

is not stopped.

DCW also generates electricity for its own purpose.

It operates a 50 MW Coal based captive co- generation power plant at Sahupuram in

Tamil Nadu, India.

In addition to meet its own requirement the company also planning to sell surplus

electricity generated.

W – WEAKNESS

1. High level of production or non-stop production of chemical products will make the

environment polluted much.

2. Major damage is to Ozone layer.

3. Many health disorders are affected not only to the employees but also to the surrounding

inhabitants, animals' birds and plants.

4. Absenteeism is a problem which creates cost and productivity problem, puts an unfair

burden on the majority of employees who show up for work, ultimately hinder customer

satisfaction, and drains the country's economy.

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5. Excessive absenteeism involves a considerable lose to the enterprise because work

scheduled are upset and delayed and management has to give overtime wages to meet the

delivery dates.

6. The rates of overtime wages are double than the normal rates of wages.

7. Any type of accidents occurs in the factory while in production.

8. Lack of supervision while production.

O - OPPORTUNITY

1. Government provides loan facility to the company towards increase in production

growth.

2. Government provides Tax exemption on exporting goods.

3. Company products are reduced their Tax rate.

4. IDBI (Industrial Development Bank of India) provide the loans for company production

development.

5. Raw material like seawater is a great opportunity to the company as it gets from the

nature.

6. Excessive of energy creation is sold to the Government.

7. Lots of contract work is given to others, which make less expensive.

8. Warehousing facilities are available.

T - THREAT

1. If competitors company try to attract the experienced employee of the other company.

2. Natural calamities cannot be avoided.

3. Must have an eagle eye on the market and the competitors.

4. Other competitors using new and advance technology in making products, this may

create fear in marking.

5. While exporting the products to abroad any natural catamites occurs in

transportation will make major loss.

6. Removal of subsidy affects profitability and viability of many industries.

7. Banks and insurance sector came under competitive environment and were forced to

operate possibly, at balance with the private sector.

23

FINANCIAL DEPARTMENT

Introduction

Financial analysis is a powerful tool to ascertain in strength and weakness in the operation and

financial position of an enterprise. The analysis of financial statement

is useful to:

Management

Investors

Creditors

Bankers

Financial Institutions

The financial statement is an organized collection of data according to logical and consistent

accounting procedures. Its purpose is convey and understanding of same financial aspects of

business firm. It may show position at a movement of time as in either case of the balance sheet

or may reveal a serious of activities over a given period of time as in the case of an income

statement.

Thus the financial statement is generally refers to the basic statement.

The income statement.

The balance sheet.

The statement of retained earnings.

The statement of change in financial position in addition to the above two statement.

Functions

The primary functions of the Finance Department are:

Prepare and administer the City's Annual Budget for the City Manager;

Provide financial advice to the City Manager and City Council;

Maintain a general accounting system;

Collect all taxes and revenues of the City;

Invest cash reserves;

Prepare financial reports;

Administer the payroll, and

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Procure equipment and supplies and control inventories of the City.

Analyzing the financial performance of the DCW Ltd.

Analyzing the financial position of the company through ratio analysis

Determination of periodic changes in the financial performance o the company and to

prepare comparative statements.

Studying the liquidity, profitability, solvencies and turnover of the company.

Studying about the operational efficiency of the firm.

Process of identifying of financial strength of a firm from the available accounting data

financial statement.

The analysis is done by properly establishing the relationship between the items of

balance sheet and profit and loss account.

The first cost of the analyst to determine the information in way to significant

relationship.

The final step is interpretation of drawing of inference and conclusion

Financial SWOT

S – STRENGTH

1. The company has built up strong, stable management cable of riding through the vices

studies.

2. DCW is an industry pioneer with a long track recorded in its markets and DCW is a

diversified manufacturer of basic chemicals.

3. DCW has focused on development of value added and exports oriented products like

upgraded limonite and pigment grade yellow iron oxide.

4. DCW has go aboard on an ambitious project for the manufacture of ferrite grate iron

oxide with a capital expenditure of around Rs. 1 Billion.

5. Production and sales both are standardized for the whole year, so no loss is occurred.

6. DCW lays great deal of importance on with a full fledge research and development

Centre at Shupuram, which is recognized by the department of scientific and industrial

research of the government of India.

7. Proper allocation is done for each department and division.

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8. Every year financial status is increased.

9. High level of exporting of products increases the funds for the company.

10. Most of the products are given under contract, so funds are saved or minimized.

W-WEAKNESS

1. Due to Absenteeism more expenses are done on wages and overtime payment, which is

paid in double.

2. Machines must be maintained properly; otherwise again a huge amount of investment

must be done on fixed assets.

3. If there is lack of supply, then there will be decrease in profit.

4. Due to chemicals products production, there will be high-level maintenance expenses

must be needed.

5. Medical care expenses must be done for employees.

6. Huge amount of investment is done for industry wastage and sewage, if this isnot done

then it will create many dangerous situations.

7. If new technology machines are introduced in the company, then the company must bare

the training expenses.

8. Any sudden risk expenses will decrease the net profitability ratio.

O - OPPORTUNITY

1. Many Government policies are introduced.

2. Taxation relief is given in some Circumstances by the government.

3. Foreign orders are many, so products are exported in huge quantity.

4. IDBI (Industrial Development Bank of India) supports the financial position of the

company.

5. Fewer expenses are made on raw materials.

6. The government introduces many new schemes.

7. Injured or death or damages can be Insured. Many Insurance policies are available and

can be claimed

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T - THREATS

1. Company's secrets financial matters must not be leaked out.

2. Government increases the Taxation rates on sale of products.

3. Foreign orders are reduced, and then exporting will be minimized.

4. Fall in price on finished goods will make income less.

5. Some of the raw materials rates are increased.

6. Sudden failure of machinery will take to huge investment.

7. If competitors reduce their product rate in the market, then it will affect the company in

selling their goods.

8. Tender quotations must keep secretly, it must not be let out to other competitors.

9. Scientific research must be kept secretly so that no one can take copyright

10. More debtors and creditors make the company in critical position.

11. If the competitors introduce new technology machines then the company must also invest

their machines.

12. Shortage in raw materials will lead to production delay or reduced.

13. Lockouts or Strike periods will affect the company.

14. If new rules and regulations are introduced by the Government.

15. If Government increases the Taxation rates on exporting of goods to foreign.

27

General Manager (HR)

Deputy Manager Deputy General ManagerHR

Medical Officer

Officer (Personnel)Officer

Personnel Male nurse

Administration Assistant

HUMAN RESOURCES DEPARTMENT

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Functions

Recruitment and placement of human assets in various positions.

Personal establishment work and Personal records maintenance.

Administering employee welfare programs

Organizing employee related functions.

Formulating and monitoring employee motivation schemes.

Payroll processing.

Time office administration.

Matters concerned with organization chart, placements, career growth, and job rotation.

Quarter's allotment in Sahupuram Complex.

Training of personal.

Managing Industrial Relations.

Compensation related issues.

Monitoring discipline and assisting line management on disciplinary matters.

Dealing with employee counseling and grievances.

Manpower has been classified as follows:

1st Roll comprising of staff employees in grades Ml to B - Vice President to DY.

Manager levels. They in non-union category.

2nd Roll comprising of staff employees in grades C to E - Sr. Engineer / Sr.

Officer to Asst. Engineer / Jr. Officer levels. They are in non-union category.

3rd Roll comprising of staff employees in posts of Drivers, Cleaner-Cum-Drivers, Head

Guards, Security Guards and Office Attenders. They come under bargain able category.

4th Roll comprising of workmen in grades I to VII. They are union category.

The total manpower in Sahupuram consists of all the above categories plus Engineer

trainees, Trainee Supervisor / Chemist, Diploma Trainees, Badlis and short term

apprentices

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Joining formalities

On your first day,

The employee will have to report at the personal department.

Submit your offer of appointment, letter from your previous employer, qualifications

certificate, experience certificate and other testimonials as required.

Meet our Medical officer at the Works Hospital regarding your medical fitness.

Fill up certain formats like PF, Gratuity nominations etc.,

Induction

The personal department will prepare your Induction program. The Induction will cover all

departments of the organization. A copy of your induction schedule will be sent to all the

department heads in advance in order make the induction program smooth and give adequate

time for them to prepare themselves for your visit. On completion of your induction program

personal department will put you through to your department head that will decide on your

assignments. During the induction you will also meet VP (works) and VP (Mfg.). Your Induction

will conclude will conclude with a wrap up session with GM (HR) s.

Identity card

You will be provided with a photo identity card by time office. You are expected to wear you

identity card or produce it on demand by security. L loss of identity card should be reported to

Security/ Time office immediately. Replacement of identity card will be done on payment of

charge fixed for the purpose.

Attendance

You are required to register your attendance everyday through electronic punch card attendance

system. Your punch card will be issued by time office to be used by you to punch "IN" at the

commencement of your shift and punch "OUT" at the end of your shift. Clocks are installed in

the Time Office located at the factory gate and also at the administrative building. Those work

locations ate in the plants would punch at the time office while those located in administrative

office will punch in the clock installed in the complex. Needless to state that you are expected to

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be punctual in attendance barring ate unforeseen eventualities. In case of loss or damage to your

punch card, the matter would need to be reported to Time Office immediately. Replacement of

lost card will do by Time Office on payment of charge fixed for this purpose.

Work rules

If you are a staff employee, your service in the company would be governed by the provisions of

General Service Rules read along with your offer of appointment. Service conditions of

Workmen are governed by the certified Standing orders. Details in this regard can be had from

personnel department.

Salary payment

If you are a staff employee will receive your salary for the month on the third or fourth working

day of each subsequent month. The net pay would be deposited in your bank account either in

the bank operating in the Sahupuram Complex or one of the neighborhood banks and intimate

your account number to the payroll. You will also receive a pay slip every month detailing your

gross pay, deductions effected and net pay. For workmen, the wages for the month is paid on the

seventh working day of each month. Pay roll section will clarify your doubts on your pay,

allowances and deductions.

Leave

All employees are entitled to ten days casual leave in a year. Unveiled casual Leave will

automatically lapse at the end of the year. Other leave entitlements like, privilege/earned

leave, sick leave will depend upon whether you are in the staff of workman category. You

can ascertain your leave entitlement from personnel department on your first day. Leave

records are maintained by time office.

Barring unforeseen eventualities, you are expected to obtain prior permission of your superior

staff for availing leave and get the leave sanctioned in advance in the 3 prescribed leave

application formats. Always remember to leave your contact telephone and address with your

department head so that you are contactable should the need arise. You need to not that leave

would be sanctioned subject to exigencies and keeping the interest of the plant in mind.

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Holidays

You are entitled to nine holidays consisting of six common holidays and three sectional holidays

every year. Personnel department every year notifies the lists of 7 holidays. The three sectional

holidays are related to religious affiliation. For example if you are a Hindu you are entitled to

avail the three sectional holidays declared for Hindu religious festivals. However, due to

exigencies and requirements you may have to attend duty on these days for which you will be

compensated as per rules.

Benefits

As a member of the DCW work team you are eligible for certain service benefits, to foster good

health, trust and mutuality of interest. Some of these are, of course, statutory in nature. Some

benefits are extended only to staff while some are common to all employees. An illustrative list

of benefits is given below:

1. Provident Fund - the company is an exempted establishment and PF is administered by a

Trust set up by the company.

2. Service Gratuity.

3. Death Relief Fund.

4. Group Superannuating Scheme for senior level staff.

5. Insert - free pay advance.

6. Medical Reimbursement

7. Leave encashment

8. Festival Advance

9. Vehicle / Furniture / Fridge loan for 1st roll staff.

Growth

Performance, commitment and loyalty are the benchmarks for your growth and progression in

the organization. You will also be given a hike in your salary by way of annual increment / pay

increase. The company allows you to upgrade your knowledge by pursuing relevant professional

courses while in service and recognizes your successful efforts in this regard.

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Work hours and shifts

The Sahupuram unit Works in three shifts. In addition there are two general shifts.

SHIFT WORKING HOURS

"A" Shift Lunch 6.00 AM - 2.00 PM 12.00 Noon-12.30PM

"B" Shift Break 2.00 PM-10.00 PM 6.00 PM-6.30 PM

"C" Shift 10.00 PM-6.00 PM

"D" Shift Lunch 7.30 AM - 4.30 PM 12.00 Noon-1.00 PM

General Shift Monday – Friday Saturday Lunch 9.15 AM-5.15 PM 9.15AM-1.15PM 1.00 PM-1.30 PM

Employee welfare measures

Work dress

All workmen and certain categories of staff like drivers, attendees etc are provided with work

dress and shoes / footwear which they are required to wear while on duty. However, even those

employees not provided these facilities are expected to wear proper dress and shoes while at

work in the interest of their safety.

Medical center

A six bedded Works Hospital with emergency room other essential facilities has been set up

within the complex. A qualified doctor is in charge. The hospital function round the clock with

other Para -medics to provide medi-care to works injury cases and medical consultation for the

residents of Sahupuram Township. The Centre also organizes statutory medical examination for

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workmen. As you have seen, there are a host of departments carrying out functions they are

responsible for resulting in the proper conduct of the business of the enterprise. Each one is a

supplier or customer to another. Irrespective of the department you are placed in, you must know

who your customers and suppliers are. Your role as a supplier would be to deliver outputs that

meet and exceed your customer's expectation every time. Likewise, your role as a customer

would be to specify to and obtain from your requirements and expectations.

Canteen

Employees at work are provided wholesome food in the canteen, which is operated by

employees co-operative and subsidized by the company. The canteen also provides tea / coffee

service at work spots in all shifts.

Transport service

The company operates a daily pick up and drops service for staff employees residing in

Sahupuram, Authoor, Arumuganeri up to New Colony and not availing conveyance

reimbursement benefit. The service is operated in all the shifts. Those availing conveyance

reimbursement are also permitted to use this service on nominal payment. For the benefit of Staff

personnel and their families the company also operates a daily transport service in the evenings

in the Sahupuram - New Colony - Authoor - New colony - Sahupuram Route. Special trips to

Thoothukudi and Trichendur are arranged exclusively for residents of Sahupuram and their

family to facilitate purchase.

Sports and recreation

The Company organizes every year pleasure trips to Courtallam for employees and their

families. The Sports Council constituted by the company plans and organizes various sports and

games not only to nature talents but also to foster competitive spirit amongst employees.

Winners in various in - house sports and games conducted by the Council are recognized on

the Founder's Day Celebrations held every year in March/April. The council also ensures

company participation in interdistrict and important tournaments. A film Committee

periodically organizes screening of current feature films in nearby theaters exclusively for staff

employees and their families.

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Townships

The company has set up a small township at Sahupuram for staff employees at the level of

engineers and above. 102 quarters in five types have been constructed and allotted to eligible

staff personnel depending upon of nature of work / department need.

The township has facilities for recreation in the form of auditorium, in house cable -television,

play grounds and park. The Mangala Vinayagar Swamy Temple in the colony is an integral part

of the lives of the residents of Sahupuram Township. In order to provide lodging / Boarding

facilities to important visitors and outstation company officials, the company has set up a Staff

Stay House in the township.

The guest house has 10 rooms including VIP rooms, all air-conditioned and functionally a

furnished, a well laid out dining hall which serves vegetarian cuisine and a lounge. It has also

facility for open air get together. The township also has the works hospital. Round the clock

security service is provided in the township. A post office and bank is also available in the

township. For workmen the company has constructed a residential colony at Sernthamangalam,

about 10kms from Sahupuram. The colony also has a Vinayagar Temple.

School

A CBSE - affiliated high school named Kamalavati Higher Secondary School has been set up by

the company to provide quality education to children of employees and those residing in the

neighborhood. The school is equipped with playground, computer center, laboratory, and library

and open-air stage.

35

Human resource SWOT

S - STRENGTH

1. Each and every year productivity level is increased so the employees' resources are also

increased.

2. Better analysis leading to more effective decision-making.

3. Many career planning and counseling at all levels.

4. Improved quality of reports kept for different persons and different departments

5. Better ability to respond to environmental changes.

6. Supply data and returns to Government and to the pubic

7. Responsible for the protection of Company's movable immovable properties in the

factory, townships and salt area

8. Also equipped to tackle fire incidents

9. All the facilities available inside the campus for the employees to work in a better

surroundings.

W-WEAKNESS

1. Less communication in between the groups and individuals.

2. Can be expensive in terms of money and manpower requirements.

3. Continuous absences will make much burden of work on others.

4. If training program is not conducted for a period to new employees it creates difficult

positions.

5. Good medical care is not provided to employees while in-need.

6. Remuneration is not given in time.

7. If any refreshment program are not given to employees.

O – OPPORTUNITY

1. New recruitment is done for new employees.

2. Welfare facilities are available.

3. Cultural programs are conducted yearly once for the refreshment of the employees

4. Incentives are given to motivate the employees.

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5. Research persons are available in DCW, which is a very big opportunity to the company.

6. Regular gathering of staff personnel are organized to provide them platform for

interacting and presenting suggestions towards Cost Improvement, which gives put into

practice with successful results.

7. Enough opportunities to participate in continuous improvement programs and exhibit the

innovative and creative abilities

T - THREAT

1. Leakage of the company secrets to competitors

2. Sudden resignation of any well working employee

3. Well-qualified employees moving to other competitors for more earnings

4. Competitors giving more opportunity to the employees, so that they are attracted and join

them

5. Employees' skills are not praised or not paid incentives may quit the company and join

the competitor and tell the companies in and outs, which may create a major loss for the

company.

6. If employees benefits are not given to them

37

General Manager

Deputy Manager Deputy General Manager

Officer (Personnel)

Administration Assistant

Officer

MARKETING DEPARTMENT

38

Functions

1. The chief functions of sales management are:

2. Recruiting and employing salesmen and fixing their compensation and respective

territories.

3. Training the salesmen in knowledge of the goods and in methods of selling them.

4. Supervising and directing the sales activities of the men out in the field, sending them

letters and providing helpful information.

5. Preparing and furnishing equipment for salesmen in the way of samples, sample cases,

price lists, kits, portfolios, or whatever else may be necessary, depending on the nature of

the business and the product or service sold.

6. Supervising and checking the expense accounts, route lists, detailed reports and daily

letters of the salesmen.

7. Determining sales quotas, providing bonuses and prizes, conducting sales contests and

special sales campaigns.

8. Preparing, or directing the preparation of, sales manuals, or salesmen's handbooks,

giving detailed information about the company, the products, and the sales principles and

methods involved in selling.

9. Cooperating with the advertising department by helping the salesmen utilize and sell the

company's advertising and aiding them to assist customers to make use of advertising

helps, and by obtaining reports from the field concerning the reaction to the company's

advertising and that of competitors.

Direct domestic customer

1. These are the Direct Domestic Customers of DCW Ltd.,

2. Industrial Associates, Mumbai.

3. Biocon Limited, Bangalore.

4. BHEL, Bangalore.

5. Hindustan Aeronautic Limited.

6. MICO Bosch, Bangalore.

7. Agsar Paints

39

Overseas customer

1. These are the Overseas Customers of the DCW Ltd.,:

2. Marubeni Corporation.

3. Ishihara Techno.

4. Mitsui & Co.

5. Capricorn Chemicals

6. Dollar Corporation

7. Dupont

Marketing SWOT

S - STRENGTH

1. Accessibility to customers at all times.

2. Number one company in producing chemical products.

3. Promptness and responsiveness to customer needs.

4. Demand for the products in the market, which increase in supply.

5. Prices are normal compared to their competitors.

6. Having knowledgeable people interact with the customers.

7. Hold current users by encouraging repeat purchasing.

8. Following up properly and doing it right so that promises are kept.

9. Better warehousing for the finished goods.

W-WEAKNESS

1. Delay in goods supply to the customer.

2. Damages of goods send will create bad impression on the company.

3. If heavy expenses are not made on marketing.

4. Promises made by the company must be satisfied.

5. No customer service centre is provided.

6. Cannot compensate for a poorly trained and ineffective sales force.

O – OPPURTUNITY

40

1. The new Economic Policies of the Government of India in general.

2. Good quality products of DCW are produced, makes many customers to buy the products

from them.

3. Encouragement to Foreign Direct Investment (FDI), which is an opportunity to DCW.

4. Brand name makes many customers not only in home country but also abroad.

5. New technology is used to produce the products, which brings out good quality goods.

6. Liberalization of Industrial licensing.

7. Neutralize competitive advertising and sales promotions.

8. They do direct marketing, which is a major opportunity.

9. Maintain price leadership or price similarity with competitors.

T – THREAT

1. Must have an eagle eye on the market and the competitors.

2. Other competitors using new and advance technology in making products, this may

create fear in marketing.

3. While exporting the products to abroad any natural calamites occurs in transportation will

make major loss.

4. Removal of subsidy affects profitability and viability of many industries.

5. Banks and insurance sector came under competitive environment and were forced to

operate possibly, at balance with the private sector.

6. Entry of Multi-National Companies (MNCs) into the Indian market on a large scale

increases the competition for products and services.

7. Big players start buying smaller players through joining and achievement.

OBSERVATION

41

The internship was very helpful in gaining knowledge in a wide area of the organization.

It has widened more on the functioning of the company

The surrounding of the organization and the atmosphere was a different part of the study

CONCLUSION

42

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