Sud-Chemie India Pvt.ltd OS Report

AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD.

CHAPTER –I

INTRODUCTION

Page |1ILAHIA SCHOOL OF MANAGEMENT STUDIES


1. INTRODUCTION

The planned coordination of people and their joint efforts for the achievement of the

specific goals is known as an organization. The organization study involves the study and

structure of its various departments. The structure of an organization is very important and it

is interesting to have a study up on Süd-Chemie India Pvt. Ltd which has very large and stable

structure and also it is a profit attaining organization which has a highly successful growth.

Süd-Chemie India is engaged in the manufacturing of catalysts for various

applications, having two manufacturing facilities. One in Cochin (Kerala) and the other in

Baroda (Gujarat). Manufacturing operation was started in 1970. Both the units and the R&D

division are ISO 9001:2000 and ISO 14001 certified. The company was registered in 1969 as

Catalysts and Chemicals India (West Asia) Pvt. Ltd. The name was first changed to United

Catalysts India Ltd. and then to Süd-Chemie India Ltd., consequent to change in name of the

parent company. Manufacturing operations at Cochin unit has started in 1970. Baroda unit

was started in 1978. The Company has got marketing offices at Delhi and Bombay.

The company has been catering to the Syngas catalyst requirements of almost all the

fertiliser manufacturing companies in India. They are market leaders for Syngas catalysts in

India. Refineries and Petrochemical industries are also using their catalysts. With the

introduction of MIDREX catalysts they started meeting the requirements of Sponge Iron

Plants also. Now Süd-Chemie India has started feeding to the highly competitive automobile

sector also with our Catalytic Converters for two and three wheelers as OEM suppliers.



1.2 SCOPE OF STUDY

The organization study encompasses the entire functioning of the organization which

includes the nature of the business it is involved. About the company’s current scenario, the

departmental segregation created for the implementation of plans and procedures, the current

branches that it controls and the future expansion plans which includes both the national and

international markets. Moreover the needs to conduct an organizational study lies in the fact

that they provide an in depth understanding of what a company is all about and the

understanding factor of its existence.

The day to day activities of the organization

Departmental functions

The organizational and departmental structures

An understanding about services provided by organization

The company and its incorporation

1.3 OBJECTIVE OF THE STUDY

To familiarize with the functioning Süd-

Chemie India Pvt. Ltd.

To familiarize with the different departments

in the organization and their functions

To understand how key functions are

performed in the organization

To understand how information is used in

the organization for decision making at various levels.

To familiarize with the process of

recruitment and selection of manpower

To know about the financial position of the

organization

To know about its future ventures



To relate theory with practice.

1.4 LIMITATIONS OF THE STUDY

1. Organization was reluctant to disclose matters related to the internal affairs of the

company.

2. The study was conducted mainly through interviews & interactions, and chances of

bias may exist.

3. Non-availability of data within the limited time

4. Inconvenience of employees

5. Study was based on personal limitations.



CHAPTER -II

INDUSTRY PROFILE

COMPANY PROFILE

PRODUCT PROFILE



2. INDUSTRY PROFILE

The global chemical industry forms the fabric of the modern world. It converts basic

raw materials into more than 70,000 different products, not only for industry, but also for all

the consumer goods that people rely on in their daily life. The modern chemical industry is

divided into four broad categories, comprising basic chemicals, life sciences, specialty

chemicals and consumer products. Its outstanding success is largely due to unceasing

scientific and technological breakthroughs and advances, which have led to the development

of new products and processes.

In the chemical industry and the industrial research, catalysis plays an important role.

The different catalysts are in constant development to fulfill economic, political and

environmental demands. When using a catalyst it is possible to replace a polluting chemical

reaction with a more environmental friendly alternative. Today, and in the future this can be

vital for the chemical industry. In addition it’s important for a company/researcher to pay

attention to the market development. If not a company’s catalyst is continually improved,

another company can make progress in research on that particular catalyst and gain market

share. For a company, a new and improved catalyst can be a huge advantage for a

competitive manufacturing cost. It’s extremely expensive for a company to shut down the

plant because of an error in the catalyst, so the correct selection of a catalyst or a new

improvement can be the key to industrial success.

To achieve the best understanding and development of a catalyst it is important that

different special fields work together. These fields can be: organic chemistry, analytic

chemistry, inorganic chemistry, chemical engineers and surface chemistry. The economics

must also be taken into account. One of the issues that must be consider is if the company

should use money on doing the catalyst- research themselves or buy the technology from

someone else. As the analytical tools are becoming more advanced, the catalysts used in the

industry are improving. S

Some of the large chemical processes that use catalysis today are the production of

methanol and ammonia. Both methanol and ammonia synthesis take advantage of the water-

gas shift reaction and heterogeneous catalysis, while other chemical industries

use homogenous catalysis. If the catalyst exists in the same phase as the reactants it is said to

be homogenous; otherwise it is heterogeneous.


http://en.wikipedia.org/wiki/Homogeneous_catalysis

http://en.wikipedia.org/wiki/Heterogeneous_catalysis


2.1 HISTORY

Humans have known about catalysis for many centuries, even though they knew

nothing about the chemical process that was involved. The making of soap, the fermentation

of wine to vinegar, and the leavening of bread are all processes involving catalysis. One of

the first formal experiments on catalysis occurred in 1812. Russian chemist Gottlieb

Sigismund Constantin Kirchhof (1764–1833) studied the behaviour of starch in boiling water.

Under most circumstances, Kirchhof found, no change occurred when starch was simply

boiled in water. But adding just a few drops of concentrated sulphuric acid to the boiling

water had a profound effect on the starch. In very little time, the starch broke down to form

the simple sugar known as glucose. When Kirchhof found that the sulphuric acid remained

unchanged at the completion of the experiment, he concluded that it had simply played a

helping role in the conversion of starch to sugar.

The name catalysis was actually proposed in 1835 by Swedish chemist Jöns Jakob

Berzelius (1779–1848). The word comes from two Greek terms, kata (for "down")

and lyein (for "loosen"). Berzelius used the term to emphasize that the process loosens the

bonds by which chemical compounds are held together.

The first time a catalyst was used in the industry was in 1746 by J. Roebuck in the

manufacture of lead chamber sulfuric acid. Since then catalysts have been in used in a large

portion of the chemical industry. In the start only pure components were used as catalysts, but

after the year 1900 multi-component catalysts were studied and are now commonly used

catalysts in the industry today.


http://en.wikipedia.org/wiki/Catalysis


2.2 CATALYSIS

Catalysis is the change in rate of a chemical reaction due to the participation of a

substance called a catalyst. Unlike other reagents that participate in the chemical reaction, a

catalyst is not consumed by the reaction itself. A catalyst may participate in multiple

chemical transformations. Catalysts that speed the reaction are called positive catalysts.

Substances that slow a catalyst's effect in a chemical reaction are called inhibitors.

Substances that increase the activity of catalysts are called promoters, and substances that

deactivate catalysts are called catalytic poisons.

Catalytic reactions have a lower rate-limiting free energy of activation than the

corresponding uncatalyzed reaction, resulting in higher reaction rate at the same temperature.

However, the mechanistic explanation of catalysis is complex. Catalysts may affect the

reaction environment favorably, or bind to the reagents to polarize bonds, e.g. acid

catalysts for reactions of carbonyl compounds, or form specific intermediates that are not

produced naturally, such as osmate esters in osmium tetroxide-

catalyzed dihydroxylation of alkenes, or causelysis of reagents to reactive forms, such

as atomic hydrogen in catalytic hydrogenation.

Kinetically, catalytic reactions are typical chemical reactions; i.e. the reaction rate

depends on the frequency of contact of the reactants in the rate-determining step. Usually, the

catalyst participates in this slowest step, and rates are limited by amount of catalyst and its

"activity". In heterogeneous catalysis, the diffusion of reagents to the surface and diffusion of

products from the surface can be rate determining. Although catalysts are not consumed by

the reaction itself, they may be inhibited, deactivated, or destroyed by secondary processes.

In heterogeneous catalysis, typical secondary processes include coking where the catalyst

becomes covered by polymeric side products. Additionally, heterogeneous catalysts can

dissolve into the solution in a solid–liquid system or evaporate in a solid–gas system.

Catalysis is the single most important interdisciplinary technology in the chemical

industry. More than 85 % of all today’s chemical products are produced using catalytic

processes. However, the importance of catalytic processes is not limited to the chemical

industry. They also play a central role during the processing of raw materials in refineries,

during the production of energy e.g. in fuel cells and batteries, as well as in terms of climate

and environmental protection.


http://en.wikipedia.org/wiki/Polymer

http://en.wikipedia.org/wiki/Coking

http://en.wikipedia.org/wiki/Heterogeneous_catalysis

http://en.wikipedia.org/wiki/Chemical_reactions

http://en.wikipedia.org/wiki/Chemical_kinetics

http://en.wikipedia.org/wiki/Catalytic_hydrogenation

http://en.wikipedia.org/wiki/Atomic_hydrogen

http://en.wikipedia.org/wiki/Lysis

http://en.wikipedia.org/wiki/Alkene

http://en.wikipedia.org/wiki/Dihydroxylation

http://en.wikipedia.org/wiki/Osmium_tetroxide

http://en.wikipedia.org/wiki/Ester

http://en.wikipedia.org/wiki/Carbonyl

http://en.wikipedia.org/wiki/Acid_catalyst

http://en.wikipedia.org/wiki/Acid_catalyst

http://en.wikipedia.org/wiki/Free_energy_(thermodynamics)

http://en.wikipedia.org/wiki/Reagent

http://en.wikipedia.org/wiki/Chemical_reaction

http://en.wikipedia.org/wiki/Reaction_rate


2.3 INDUSTRIAL APPLICATIONS

Today catalysts are used in untold numbers of industrial processes. For example, the

commercially important gas ammonia is produced by combining nitrogen gas and hydrogen

gas at a high temperature and pressure in the presence of a catalyst such as powdered iron. In

the absence of the catalyst, the reaction between nitrogen and hydrogen would, for all

practical purposes, not occur. In its presence, the reaction occurs quickly enough to produce

ammonia gas in large quantities.

Catalysts are the workhorses of chemical transformations in the industry.

Approximately 85–90 % of the products of chemical industry are made in catalytic processes.

Catalysts are indispensable in

Production of transportation fuels in one of the approximately 440 oil refineries all

over the world.

Production of bulk and fine chemicals in all branches of chemical industry.

Prevention of pollution by avoiding formation of waste (unwanted byproducts).

Abatement of pollution in end-of-pipe solutions (automotive and industrial exhaust).

A catalyst offers an alternative, energetically favourable mechanism to the non

catalytic reaction, thus enabling processes to be carried out under industrially feasible

conditions of pressure and temperature. A catalyst accelerates a chemical reaction. It does so

by forming bonds with the reacting molecules, and by allowing these to react to a product,

which detaches from the catalyst, and leaves it unaltered such that it is available for the next

reaction. In fact, we can describe the catalytic reaction as a cyclic event in which the catalyst

participates and is recovered in its original form at the end of the cycle.

1. AMMONIA PRODUCTION

Ammonia is used mostly to produce fertilizer. It is also used as refrigerant in large-

scale refrigeration equipment and in the production of detergents. Ammonia is produced in a

process known as the Haber process, in which nitrogen and hydrogen react in the presence of

an iron catalyst to form ammonia. The hydrogen is formed by reacting natural gas and steam

at high temperatures and the nitrogen is supplied from the air. Other gases (such as water and

carbon dioxide) are removed from the gas stream and the nitrogen and hydrogen passed over

an iron catalyst at high temperature and pressure to form the ammonia



2. AUTOMOTIVE

The catalysts (Catalytic Converter) remove harmful nitrous gases and carbon particles

from the engines exhaust gas, greatly reducing pollution, and allowing them to meet the high

environmental standards of the future.

Automobile catalyst is divided into Three Way Catalyst(TWC) for gasoline fuelled

cars and oxidation catalyst for diesel cars. TWC is named from the meaning of ‘simultaneous

reaction with 3 harmful elements’, and the three harmful substances are CO, HC and NOx.

These three substances have their unique harmful characteristics; CO phagocytises

haemoglobin carrying oxygen in blood, HC causes hallucination similar to bond, and NOx

causes dyspnoea by stimulating the mucous membrane of the respiratory system. Therefore

TWC is necessary for automobiles not to discharge harmful exhaust.

3. INDUSTRIAL PRODUCTION OF HYDROGEN

In oil refineries, large amounts of hydrogen are used in the conversion of crude oil

into end products such as gasoline, jet fuel, and diesel. This is why oil refineries often have a

separate hydrogen plant. Catalysts help to make hydrogen from natural gas and oil.

In refineries across the world, "on-purpose" hydrogen capacity is increasing as site hydrogen

demand reaches limits, due to tighter fuel specifications, the processing of heavier and sourer

crudes, increasing need for lighter crude oil products and strong demand for chemical intermediates.

Catalysts are used for hydrogen production via steam reforming, and are used for

hydrogen production using a range of feedstock’s, from natural gas and refinery off-gas to

LPG and naphtha’s.

Hydrogen is mainly used for the conversion of heavy petroleum fractions into lighter

ones via the process of hydro-cracking and other petroleum fractions (dehydrocyclization and

the aromatization process). It is also required for cleaning fossil fuels

via hydrodesulphurization.

Hydrogen is mainly used for the production of ammonia via Haber process. In this

case, the hydrogen is produced in situ. Ammonia is the major component of most fertilizers.


http://en.wikipedia.org/wiki/Fertilizer

http://en.wikipedia.org/wiki/Haber_process

http://en.wikipedia.org/wiki/Ammonia

http://en.wikipedia.org/wiki/Hydrogen

http://en.wikipedia.org/wiki/Hydrodesulfurization

http://en.wikipedia.org/w/index.php?title=Aromatization_process&action=edit&redlink=1

http://en.wikipedia.org/w/index.php?title=Dehydrocyclization&action=edit&redlink=1

http://en.wikipedia.org/wiki/Hydrocracking


4. OIL REFINERIES

When a refinery treats oil in the production of transportation fuels, numerous toxic

and environmentally damaging impurities are removed. Catalysts are used for the production

of diesel with ultra-low sulphur content. They are also used to make biofuels, for instance, by

converting biomass such as woodchips and household waste into diesel.

The oil we used to make “Petrol” (gasoline, or motor spirit) and other products, start

out as raw black petroleum. It cannot be used as it is, straight from underground. It must be

changed into the specific chemicals that people use. This process of changing petroleum into

useful products is called refining. The modern oil refinery is a large and complicated factory.

Automatic control of the various stages is efficient and safe. Teams of workers are needed to

keep the refinery machinery “running” smoothly.

5. SULPHURIC ACID

Catalyst are used to produce sulphuric acid. Sulphuric acid is the chemical product

most widely produced and sold in the world. Most of it is used in the manufacture of

fertiliser. Sulphur is present as an impurity in many raw materials. When producing oil, steel,

and other metals, this sulphur is released as sulphur dioxide in various exhaust gases, this

sulphur dioxide is converted into sulphuric acid, which transforms it into a saleable product.

2.4 COMPETITORS

GLOBAL SCENARIO

BASF(CHEMICAL COMPANY)

BASF SE is the largest diversified chemical company in the world and is headquartered

in Ludwigshafen, Germany. The BASF Group comprises subsidiaries and joint ventures in

more than 80 countries and operates six integrated production sites in Europe, Asia,

Australia, America and Africa.



JOHNSON MATTHEY

Johnson Matthey is a British multinational chemicals and precious metals company

headquartered in London, United Kingdom. founded almost 200 years ago Technology

leadership forms the basis of our strategy to deliver superior long term growth

HALDOR TOPSOE

(We are known for our commitment to catalysis – a commitment we share with our clients.)

Founded in 1940 on the brink of the Second World War, Dr. Haldor Topsoe started the

company

based on a commitment to heterogeneous catalysis.

The company is governed by the notion that only through fundamental science can we

continue to offer our clients the best, and the past 60 years offer an on-going tale of

improving catalysis.

2.5 INDIAN SCENARIO

PROJECTS & DEVELOPMENT INDIA LIMITED (PDIL)

PROJECTS & DEVELOPMENT INDIA LIMITED (PDIL), a Government of India

Undertaking having ISO 9001:2008 Certification, is a Pioneer Consultancy and Engineering

Organization in India with experience of over 40 years in Planning, Design, Engineering,

Procurement, Project Management, Construction & Commissioning of Fertilizer Project and

Allied Chemical Plants in India and abroad.

PDIL manufactures and supplies a wide range of proven catalysts developed entirely

on its own technical know-how. These catalysts are performing excellently in almost all

fertilizer plants in India. PDIL catalysts have also been exported to European and Middle

Eastern Countries.

PDIL came into existence in 1950s and most of the fertilizer plants in India have

utilized the expertise and experience of PDIL. PDIL not only engineers the plant for its

clients but also execute projects to revamp, modernize and enhance capacities of these plants

from time to time, besides advising on operational and technical difficulties faced by them.


http://www.google.co.in/url?sa=t&rct=j&q=TOPSOE&source=web&cd=1&ved=0CGMQFjAA&url=http%3A%2F%2Fwww.topsoe.com%2F&ei=nbrFT7WTJcLorAeIupjbBQ&usg=AFQjCNHgWMQOIdl5JZ8iRQjUpCHJhjHIew

http://en.wikipedia.org/wiki/United_Kingdom

http://en.wikipedia.org/wiki/London

http://en.wikipedia.org/wiki/Precious_metal

http://en.wikipedia.org/wiki/Multinational_corporation


Over the last six decades, PDIL has rendered the entire gamut of engineering, project

management, construction and commissioning supervision of Greenfield and expansion of 25

ammonia and 38 urea fertilizer plants.

PDIL has conducted feasibility studies, demand assessment studies, environmental

impact assessment studies, etc for various clients. PDIL is also an approved third party

inspection agency for Indian Oil Corporation, Hindustan Petroleum Corporation Limited,

Bharat Petroleum Corporation Limited and BHEL among others.

2.6 COMPANY PROFILE

INTRODUCTION

SUD-CHEMIE INDIA PVT. LTD. is engaged in the manufacture of catalysts for

various applications. Catalyst is a chemical substance used for increasing or decreasing the

rate of chemical reaction and this process is known as Catalysis. The catalyst may participate

in multiple chemical transformations. Catalysts that speed the reaction are called positive

catalysts. Catalysts that slow down the reaction are called negative catalysts or inhibitors.

The main activities of Sud-Chemie India P. Ltd. are manufacturing, sales and

technical services related to catalysts for various applications in fertilizers, petroleum and

petrochemical industries. The company has two manufacturing units in India, one in Cochin

and the other in Baroda (Gujarat). The Cochin plant is situated on the banks of river Periyar,

opposite to FACT, Udyogmandal Division and the locality is known as Binanipuram which is

part of Edayar Industrial Development Area. The main products are C12 series of high

temperature shift catalysts, C18 series of low temperature shift catalysts, C7 series of sulphur

absorbents and Vanadium Pent Oxide catalyst for Sulphuric acid manufacture.

ORIGIN

The company was founded by Sri Fazal Lalljee and Sri Altaf Lalljee and was

registered in 1969 as Catalysts and Chemicals India (West Asia) Pvt. Ltd. The name was first

changed to United Catalysts India Ltd. and then to Sud-Chemie India Ltd., consequent to



change in name of the parent company. Manufacturing operations at Cochin unit has started

in 1970. Baroda unit was started in 1978. The company has been catering to the Syngas

catalyst requirements of almost all the fertiliser manufacturing companies in India and is

market leaders for Syngas catalysts in India. Refineries and Petrochemical industries are also

using our catalysts. With the introduction of MIDREX catalysts they started meeting the

requirements of Sponge Iron Plants also. Now they have started feeding to the highly

competitive automobile sector also with our Catalytic Converters for two and three wheelers

as OEM suppliers.

GUIDED BY THE GROUP VISION

Sud-Chemie India is guided by the vision and mission of Sud-Chemic AG, Germanie

the parent company. Sud-Chemie is a highly-innovative, listed, specialty Chemicals

Company head quartered in Munich. With its two division of Adsorbents and catalysts, the

Sud-Chemie Group, which has around 4,800 employees, generates total sales of approx. 1

billion Euros. Sud-Chemie holds an extremely strong position on global markets, almost 80

percent of group sales being realized with customers outside Germany. It systematically

exploits the potential offered by fast-growing regions, notably in Southeast Asia and the

Middle East.

STRATEGY

Sud-Chemie continuously pursues its goal of sustained organic growth coupled with a

significant improvement in profitability. Based on organic growth alone, the Group is aiming

to reach sales of over 1.2 billion euros and above average increasing EBITDA and EBIT

margins. Sud-Chemie’s strategy for realizing these financial targets resets on the four pillars

of technology and innovation, customer loyalty and orientation, process optimization and also

portfolio and investment management.

BOARD OF DIRECTORS: SUD-CHEMIE INDIA

DR. HANS JURGEN WERNICKE – CHAIRMAN



DR. HANS JOACHIM MULLER – DIRECTOR

MR. VIKTOR BERNHARDT – DIRECTOR

LALLJEE – MANAGING DIRECTOR

MR. ISKANDER A. LALLJEE – JT. MANAGING DIRECTOR

MRS. HAMIDA A. LALLIJEE – WHOLE TIME DIRECTOR

CULTURE AND VALUES

To conduct the business with integrity

To act with honesty and trust towards business partners, employee and community; to

treat everyone with dignity, respect and fairness.

To respect the laws of the country and observe them in letter and spirit; to take pride

in paying taxes.

To satisfy customers requirements by providing them good quality products and

services.

To work with suppliers towards improvement of their products.

To respect nature and adopt least polluting processes and practices; to use minimum

resources.

To recognize that every employee has talent and potential; to provide opportunity for

every individual to develop

To implement safe work practices; to avoid causing harm to the community.

MISSION

“The Sud-Chemie group constantly endeavors to achieve customer satisfaction by

supplying quality products and services. It has been in this field for almost four decades.

Most of the customers have been with this organization all these years. The company is

proud that it could cater to its customers varied requirements arising from time to time”.

Sud-Chemie’s products ensure sparing use of energy and water as natural resources,

enhancing the quality of life for both humans and the environment. Adsorbents guarantee



customized products with optimal properties in the sectors of beverages, consumer goods,

packaging and foundries. Sud-Chemie’s catalysts are essential for efficient chemical and

petrochemical processes and offer optimal solutions in the areas of hydrogen production and

emission control.

SPAN OF CONTROL

Sud-Chemie India has got two marketing offices located at Delhi and Mumbai.

Exports are mainly handled through Mumbai & Cochin. Imports for Cochin units are directly

managed and requirement of Baroda unit is managed through Mumbai Office. Purchases are

handled at Cochin, Mumbai and Baroda Offices. Accounting is done at all offices and

Corporate Finance and Corporate HRD matters are handled at Cochin. Corporate Secretarial

matters are also handled from Cochin. R & D works are mainly concentrated at Cochin;

however certain works are undependably handled at Baroda also. Managing Director and

Joint Managing Director are stationed at corporate office at Delhi. Factory related matters

are handled at Cochin and Baroda for the respective manufacturing units.

COCHIN UNIT:

This unit was started in 1970. Almost 25-30% of entire production of Sud-Chemied

India is carried out through Cochin unit. This unit is equipped with sophisticated machineries

and a well setup quality assurance laboratory. Cochin unit of Sud-Chemie has a total number

of 153 employees. Production process is continuous throughout the year. Supervisors and

unskilled labours works in three shifts, 8 am to 4 pm, 4 pm to 12 am and 12 am to 8 am. For

the managers and executives the office time is between 9 am to 5.45 pm.

GROWTH PATH

The organization was started in 1969 with one catalyst, i.e. High temperature shift

catalyst for ammonia industry and now, supplying more than 76 products, covering complete

chemicals, refinery, petrochemicals and automotive industries. Introduction of these new

innovative products, not only increased the sales turnover of the company, but also saved

huge foreign exchange to the country. Now all these products are very well accepted not

only in India, but also all over the world.



The growth can be felt while looking at the phenomenal growth in of sales turn over

during the last ten years. During 1995-96 the turnover was 18.2 croes and 2005-06 it is

Rs.132 crores which is 600% growth in the last ten years. It is many folds higher than the

average industry growth. Last years turnover was about 330 Crores.

AWARDS

Sud-Chemie India has received a number of awards and recognition’s for its

manufacturing capabilities and export performance.

Received ICMA Award in 1989 for outstanding role in developing

Encilite-2 a high tech catalyst along with NCL and playing crucial role in the

development of Albene technology successfully commercialized by Hindustan

Polymers.

Received ICMA Award in 1990 for exporting Knowledge based high

tech products in competition with world’s renowned companies.

Received from CHEMEXCIL certificate of Merit for outstanding

export performance during 1992-93

QUALITY CERTIFICATIONS

R&D division of the company was certified ISO 9001 on 27.07.1999.

Cochin unit got its ISO 9002 certification on 18.06.1996.

Baroda unit got its ISO 9002 certification on 04.04.1997.

Cochin unit and R&D division has been certified ISO 14001 on 08.08.2000.

Now all have been certified ISO 9001:2000 and ISO 14001 standard.



BUSINESS PERFORMANCES

The organization was started in 1969 with one catalyst, i.e. High temperature shift catalyst for

ammonia industry and now, supplying more than 76 products, covering complete chemicals,

refinery, petrochemicals and automotive industries. Introduction of these new innovative

products, not only increased the sales turnover of the company, but also saved huge foreign

exchange to the country. Now all these products are very well accepted not only in India, but

also all over the world.

The growth can be felt while looking at the phenomenal growth of sales turn over during the

last ten years. During 1995-96 the turnover was 18.2 crores and 2005-06 it is Rs.132 crores

which is 600% growth in the last ten years. It is many folds higher than the average industry

growth.

The following table shows the sales turnover of the company for the past 3 years:

Table 3.2 Table showing sales turnover of Sud-Chemie for the past 3 years

Year Sales turnover

2009-2010 360 crores

2010-2011 305 crores

2011-2012 470 crores



2.7 PRODUCT PROFILE

Süd-Chemie India manufactures a wide range of catalysts for varied applications in

Fertilizer Industries, Refineries, Petrochemical Industries, Sponge Iron Industries and now for

emission control in automobiles and stationary engines. Our products are the result of many

years research and development work. The company continuously keeps on working for

improving the quality of our products. As a result the activity levels, efficiency and life of the

products have improved considerably over the years.

Qualities of the products are continuously evaluated at the high tech laboratories of

Süd-Chemie group so as to ensure that their products are of international standards.

They sell their products in the domestic market as well as export to various countries

including Europe, America, Iran, Libya, Japan and Indonesia. In fact, almost 50% of

our turnover is from export.Our entry into the highly competitive automobile catalytic

converter market and capturing of a sizeable share in the two wheeler catcon market in

a very short span of three years is indicative of our high calibre and capability. And

during this period itself we could make an entry into the European catalytic converter

market (for cars).

MAIN PRODUCTS

SL No

Real Name of Catalyst

Brand Name Type Application/Process Shape

1High Temperature

shift ContrastSHIFTMAX

120C12

Carbon monoxide conversion

TABLET

2Low Temperature

Shift ContrastSHIFTMAX

210C18

Low Temperature Shift Carbon dioxide

conversionTABLET

3Sulphuric Acid

Catalysts

SULPHUR MAX C116

For the manufacture of Sulphuric Acid by

Contact process

Ribbed ring

extrudate

Table 2.1 showing the Main Products



CHAPTER -III

ORGANIZATIONAL CHART

ORGANIZATIONAL STRUCTURE

DEPARTMENTS OF THE ORGANIZATION



3. ORGANIZATIONAL CHART

Fig. 3.1 Organisational Chart


Board of Directors

CEO

OPERATIONS

CORPORATE

FINANCE

CORPORATE

HR

QUALITY

ASSURANCE R & D

MAINTENANCE

DEPARTMENT

PRODUCTION DEPARTMENT

ACCOUNTS

DEPARTMENT

SALES AND

DISPATCH

PURCHASE

DEPARTMENT

HR

DEPARTMENT

STORES

DEPARTMENT

IT DEPARTMENT

ENVIRONMENT

AL POLICY

MANAGEMENT SYSTEM STANDARDS

NEW PRODUCT

DEVELOPMENT


3.1 ORGANIZATION STRUCTURE

The basic structure of Sud-Chemie India Pvt. Ltd involves issues such as how the

work of the organization should be assigned among various positions, departments etc and

also to accomplished the total organization objectives.

Authority arises because of official positions of a person, his personal competence

etc. it is the relationship between two individuals ie, superior and subordinate. The flow of

this authority is known as top bottom authority. The real authority vests at the top level in the

authority. The four basic structure forms are the functional structure, divisional structure,

matrix structure and network structure.

FUNCTIONAL STRUCTURE

Functional structure is the structure that groups people on the basis of their common

experience and expertise or because they use the same resources.

DIVISIONAL STRUCTURE

Divisional structure is that structure in which functions are grouped according the

specific demands of products, markets or customers.

MATRIX STRUCTURE

Matrix structure is that structure that creates dual lines of authority and combines

functional and product departments.

NETWORK STRUCTURE

It is the structure which is the cluster of different organizations whose activities are

coordinated by contracts and agreements rather than formal hierarchy of authority. Sud-

Chemie India Pvt. Ltd has a functional structure. It is highly characterized by routine

operating tasks, much formalized rules and regulations, tasks that are grouped into functional

departments, centralized authority and narrow span of control of decision making that follows

the chain of command. Then top level managers make all decisions and the lower level

managers execute those decisions. Since everything is standardized and formalizes there is no



much scope for flexibility. But at the same time creativity and innovations of employees are

always welcomed.

3. 2 DEPARTMENTS OF THE ORGANISATION

Organization structure is a pattern of relationship among various components or parts

of the organization. The basic structure involves such issues as how the work of the

organization will be divided and assigned among various positions, groups, departments etc.

and also to accomplish the total organization objectives which will be achieved. The various

departments in Sud-Chemie India Pvt. Ltd are as follows:

OPERATIONS

Production Department.

Maintenance Department

CORPORATE FINANCE

Sales and Dispatch

Accounts Department

CORPORATE HR

HR Department

Purchase Department

EDP Department

Stores Department

QUALITY ASSURANCE

Management System standards

Environmental Policy

RESEARCH & DEVELOPMENT

New Product Development



3.2.1 PRODUCTION DEPARTMENT

The production department controls all the production activities of the company. The

manufacturing activities of the company are continued round the clock in the year. This

department maintains close contact with all departments. Immediately on getting a new order

the same is reviewed by CEO and manager production and based on that production is

scheduled to meet the delivery requirements. The production manager is responsible for

smooth functioning of the production department and he reviews the actual and planned

production on a daily basis. If any deviations are noticed appropriate corrective actions are

taken.

Structure of Production department

Fig. 3.2 Structure of Production Department


CEO

Production Manager

Shift Incharge-1 Shift Incharge-2 Shift Incharge-3

Workmen Workmen Workmen


The Cochin manufacturing unit of Sud-Chemie India Pvt. Ltd. manufactures 3 catalysts:

i. C-12 (Iron oxide catalyst)

ii. C-18 (Copper zinc catalyst)

iii. C-116 (Vanadium pent oxide)

Applications

The catalysts C-12 and C-18 are used in various stages of Ammonia production. C-116 is

used in Sulphuric Acid production.

These 3 catalysts are those which are in continuous production in the factory. Apart from

these, 36 other catalysts are also produced here. Theses have various applications like

catalysts which reduce CFC content in air conditioners, catalysts for hydrogen powered

vehicles, etc.

C-12 Production Process

The basic ingredient for the production of the catalyst C-12 is Ferrous Sulphate (Fe2SO4). It is

greenish in colour.

Copperas tank preparation

The Fe2SO4 is diluted with water and made into a solution. This solution contains impurities

which are made to segregate in a Filter Press.

Sulphur washing

The clear solution obtained from the Filter Press is precipitated. This contains a large amount

of Sulphur content, which is reduced to a level of less than 150 ppm in a Membrane Press.

This is called Sulphur washing and it involves filtration, centre washing, corner washing and

squeezing. After squeezing, the moisture content of the output is reduced to 50%, and is

obtained in the form of cakes.



Calcination

The cakes are then dried and made into lumps through the process of calcination. This is done

in a Rotary Calciner, where hot air of up to 4300C is blown over the cakes. Now the moisture

content in the lumps is less than 5%.

Feed preparation

The lumps are stocked in a container called Lump container where they undergo ‘24 hours

ageing’. After this they are powdered into the required size. Then water addition is done

thereby increasing the moisture content from 5% to 12%, using Water sprayers. The resulting

output is called Feed.

Tableting (Calcinations)

The next step is tableting where the feed undergoes calcination in a Band Dryer. This forms a

part of the Tableting/Forming machine. Here moisture is reduced to up to 3% and tablets are

formed.

Screening process

In the Screening machine, the output undergoes screening where any broken tablets/powder

is segregated.

Thus C-12 tablets are prepared. It takes a period of 4-5 days for the raw material to be

transferred into finished product.

The manufactured C-12 tablets are now sent to the QA (Quality Assurance) department

where they are physically and chemically tested. Once the QA approval has been obtained,

they are ready for despatch, depending on the customer order.



Fig. 3.3 Production process of catalyst C-12

3.2.2 MAINTENANCE DEPARTMENT

The maintenance department of Sud-Chemie is responsible for:

Preventive maintenance

Handling breakdown issues

Ensure smooth production

Ensure availability of spares

Safety precautions

Statutory and legal requirements

Preventive Maintenance: Preventive maintenance schedule for the entire 52 weeks

throughout the year is planned ahead and carried out. Schedules are prepared on the basis of

criticality and nature of each equipment i.e. if an equipment is much important in the process

of production, then it will be given more importance also the frequency of preventive


Copperas tank preparation (Fe2SO4 solution)

Sulphur washing (membrane Press)

Calcination-4300C

(Rotary Calciner)

Tableting- Calcination (Band Dryer)

Feed Preparation

Screening machine Processed C-12 tablets


maintenance will be high for that machine. For example the tabulating machine and the

forklifts are checked every day for its healthiness since these two are vital to carry out the

operations. As stated earlier the frequency of preventive maintenance depends on the

criticality and nature, also the frequency is revised if required. For example if one machine

undergoes more breakdowns than expected then its maintenance frequency will be revised to

a higher level, if it was once every two week it may be revised to once in every week. Also if

one machine shows less frequency in breakdowns then its frequency of maintenance will be

lowered. In short according to the performance of the machine the preventive maintenance

schedule will be prepared.

Break down issues: First priority is always given to production. Whenever any breakdown

occurs then it will be handled first rather than the scheduled maintenance. Every day a plant

meeting is arranged with the personnel from production department. In that meeting the root

cause analysis will be done for every breakdown issues and necessary precautions will be

taken to avoid the repetition of break downs.

Availability of Spares: It is vital to ensure the availability of spares for any kind of

maintenance activities. Maintenance department keeps a close contact with the purchase

department and stores for ensuring the availability of spares.

Safety Precautions: For carrying out a maintenance work safety precautions must be taken

to avoid unnecessary accidents. For each work permits are requested to production

department. It is their duty to isolate the area and issue work permit. All electrical and

mechanical connections are isolated from the area under work. After the completion of work

completion report will be issued to production department describing the works done,

manpower and spares used.

Statutory and legal requirements: There are several legal requirements to be fulfilled in

order to continue using certain equipments. Like in the case of boiler annual maintenance

and testing are compulsory as stated by the Govt. (factories and boilers act). Every two



years, the ammonia tank should be test for hydroxyl. All the weighing machines are to be

tested for every year by the legal metrology department for accuracy.

The two executives will be carrying out the respective maintenance of equipments and

building. They maintain a log book which records all the works done by the department.

Also fire extinguishers are placed at respective areas. Normally the supervisors in this

department function in the general shift. Also all the workers except one will also work in

the general shift. The excluded worker will have to take the night shift and this rotate among

workers.

Structure of Maintenance department

Fig. 3.4 Structure of Maintenance Department


Unit head, SCIL, EU

Senior manager

Deputy manager

Executive

Electrical

Executive

Electrical

Executive

Mechanical


3.2.3 SALES AND DESPATCH

Main activities of this department are to collect sales order from sales offices situated at

Mumbai and Delhi. 80% of the total turnover of Sud -Chemie is through export sales and we

can say that Sud-Chemie is one of the major contributors among those who bring foreign

currency into our nation. The dispatch officer verifies the purchase order, its terms and

conditions of payment, delivery etc. and prepares a summary report on the quantities ordered.

This summary report is forwarded to the production department through the head of the

department to make available the product right at the time of delivery schedule.

Every day a contract meeting is convened with the production department and discusses the

scheduled dispatches and also discuss the possibility of delay, if any, expected due to any

technical reasons. He fixes the transporter and prepare the documents to be accompanies

with the invoices.

He will be having a thorough knowledge and all the documents to be supported for a

dispatch. He makes follow up with the customer for the timely payment of the invoice.

In the case of a purchase order received from a customer is supported by letter of Credit

opened by them, special care is taken to ensure that all the formalities and requirements of the

L.C. are met with before and after dispatch of the consignment. Usually sales invoices based

on L.C. are discounted with their banker immediately after dispatch.

He is also in charge of the ware house functions and proper up-keep of products stored in the

ware house. Proper verification of stocks in ware house is one of the important activities

performed by him.

Structure of Dispatch department



Fig. 3.5 Structure of Dispatch Department

Functions of Dispatch Department (Dispatch procedures)

As soon as order is received, a contract review summary sheet is prepared.

Discrepancies in the order, if any will be communicate to M&TS.

Activities 1 & 2 above are normally completed on the day the order is received at EU.

In the case of L/C based orders, as soon as the L/C is received, it will be verified and

discrepancies if any are identified by Shipping Executive. He will sign it and forwarded

the same along with a copy of order and contract review summary sheet to HOD Shipping

who also will verify it thoroughly and sign it.

All discrepancies will be taken up with the agent or the customer after checking up with

M&TS.

Once the order is received dispatch schedule will be finalized in consultation with

production. The date by which the product is to be ready, and other crucial dates and

other requirements will be shown in the schedule.

Inspection, wherever required is planned and arranged in consultation with

production/QA.

The dispatch schedule will be updated as and when changes are required. Sample

attached.


Materials Manager

Assistant Manager, Dispatch Dept.

Support Staff Support Staff


Material will leave the factory only if all the documents are correct and completed as per

the terms of the order (and L/C).

In case of discrepancy/deviation from the terms, material should move only with the

permission of materials manager. A copy of the contract review summary showing the

discrepancies/deviations from the terms of the order should got signed by the materials

manager.

Invoice and other documents are prepared on the date the cargo moves out of the factory.

These documents are sent to the customer as per terms given in the PO or as per direction

received from M&TS, normally within two days of dispatch.

For export shipment it will take about 5 days for sending the documents to customer.

For Iranian orders, where legalization of documents is required, it takes about 15 days for

the documents to be submitted to the bank.

Dispatch details faxed to the customer on the same day of dispatch,

The following communication will take place before and after shipment.

a. Before dispatch – dispatch plan intimation to customer

b. After dispatch – confirmation of dispatch

c. Shipping details in case of export

d. Documents to customer and all others concerned.

Purchase Order Execution

a) Prepare contract review

b) To inform the customer for availability of the material, requirement of trucks and freight

rate

c) Select the drums for dispatch and prepare packing list

d) Select the transporter and inform the schedule.

e) Prepare shipping marks and required number of labels.

f) Prepare invoice and all other documents as per purchase order terms.

g) To send dispatch intimation with scanned copies of documents to customers and M&TS.

h) After completion of a dispatch prepare all original documents and send to customer.

i) To follow up safe delivery of the material.

j) To inform number of drums and pallet requirement to palletizing contractor(if export)



k) To send invoice and information bill details and other required documents as per PO to

CHA for arranging export.

l) Inspecting the container stuffing

m) Information given to central excise dept. for arranging inspection.

n) Prepare ARE-1 and conduct Central excise inspection.

o) Prepare and fix hazardous labels in 5 sides of the container if the material is hazardous.

3.2.4 ACCOUNTS & FINANCE DEPARTMENT

Chief designation is the Head of the department; he is responsible for arrangement of funds,

proper utilization of it, fixation of credit limit to customers, fixation of credit limit from

suppliers. He is the chief official in reporting all the major finance related activities to the

managing director. The following are the sub departments which are directly controlled by

him.

1. Sales and dispatch

2. Accounts

Functions of all these departments are carried out by the Assistant finance Manager (AFM)

who will be directly reporting to the head of the department. AFM will be responsible for the

various functions that are performed by the sub departments.



Structure of Finance Department

Fig. 3.6 Structure of Finance Department

Functions of Accounts and Finance Department

The functions of the Accounts & Finance department relate to the following:

Export and import

Domestic production and sales

Fund management

Investments

Statutory departments liaising (with sales tax authorities, central excise, RBI,

etc.)

Group reporting (monthly & yearly)

Audit function (Internal audit, tax audit, department audit, group audit)


DEPUTY GENERAL MANAGER FINANCE

ASST. MANAGER FINANCE

SENIOR EXECUTIVE (Sales /

Despatch)

SENIOR EXECUTIVE

EXECUTIVES

GENERAL MANAGER FINANCE

EXECUTIVES


3.2.5 HUMAN RESOURCE DEPARTMENT

Structure of HR Department

Fig. 3.7 Structure of HR Department

Functions of HR department

1. Recruitment

It is the process of searching for prospective employees and stimulating them to apply for

jobs in the organization.

Recruitment planning at Sud-Chemie is initiated either by future development plans or by any

business improvement plans (volume of business). Manpower separation and resignation of

employees are also stimulating factors for recruitment. Internally, recruitment is carried out

through promotions and transfers. Vacancies mostly are filled by the leaving worker’s family

itself. Other external sources used are advertisement in newspapers, employee reference, and

advertising in company website.


Chief Manager HR

Senior Executive

Executive

Receptionist


2. Selection

It is the process of picking individuals who have relevant qualifications to fill jobs in an

organization. Another definition says that selection means “trying to fit an applicant to a

particular job”, i.e., matching the job and the applicants.

At Sud-Chemie, post screening of applications, the candidates are to undergo the personal

interview. For the selection of worker level employees, the HR and technical managers will

be conducting the interview. For the senior level, the vice president also joins the interview

panel, and for selection at managerial level, the MD accompanies the panel as well.

Unlike in most large organizations, at Sud-Chemie, the selection process does not incorporate

written tests or group discussions since the requirement usually is less in number. Mass

recruitment is not ordinarily necessary. Besides, most of the vacancies are filled by employee

referrals.

3. Induction and Orientation

Induction is designed to provide a new employee with the information required to function

comfortably and effectively in the organization. Orientation generally conveys general

information about the daily organizational routine, a review of the organization’s history and

a detailed presentation of the organizational policies and work rules.

At Sud-Chemie, a new employee is provided with an Induction manual to familiarize

himself/herself with the company and he/she is given an induction schedule of 15 days.

During this period, the employee will be introduced to the various departments and their

functions. More attention will be given to the functions of the particular department he/she

was chosen for. After 15 days of induction and orientation the new employee will have to

prepare a report and submit it.



5. Performance Appraisal

Performance appraisal is the process of evaluating the performance and qualifications of

employees in terms of the requirements of the job for which they are employed. Commonly

performance appraisal is described as behavioral assessment, employee assessment, personal

review, progress report, staff assessment, service rating and fitness report.

At Sud-Chemie the performance audit is done once in a year. Marks are allotted to each

employee out of 100, based on the following criteria.

Attitude towards work

Behavior in the organization

Technical knowledge

Safety knowledge

Seniority (only in case of workers)

For the appraisal, performance evaluation forms are used which incorporate all the criteria

given above. The forms are forwarded to all department heads so that they can fill up the

forms corresponding to each employee in their department. It is their responsibility to fill up

the evaluation form and return them to the HR department. For each employee, the

immediate supervisor or the HOD will be assessing the performance.

The HR department will process the information in the filled forms and assign marks for each

employee out of 100. Those who get a score below 35 will be notified about their poor

performance and cautioned. Training programs will be arranged for them to improve their

performance. Based on their scores, employees are categorized into poor, average, good,

outstanding etc. Those who scored above 85 are eligible for promotions. Promotions are

granted to them according to the availability of vacancies.

6. Industrial Relations



The field of industrial relations looks at the relationship between management

and workers, particularly groups of workers represented by a union. Labor relations can take

place on many levels, such as the “shop-floor”, the regional level, and the national level. The

distribution of power amongst these levels can greatly shape the way an economy functions.

In Sud-Chemie the industrial relations scenario includes regular meetings

like weekly shop floor meeting, monthly plant meeting, meeting on special issues, long terms

settlement etc. In the weekly shop floor meeting the participants will normally be the

production manager and the representatives of the trade union. Normally work related

problems will be discussed in this meeting. The monthly plant meeting will be participated

by all the department heads and union leaders. For specific issues separate meetings will be

entertained. Long term settlements in the case of salary restructuring and related matter are

done once in three or four years.

I. Monthly plant meeting including all the department

II. Weekly shop floor meeting (only production manager and employee union)

III. Separate meeting for specific issues

IV. Long term settlement for salary restructure and all (once in 3 years)

7. Grievance

If employees have any problem normally they will talk about the same in the shop floor

meeting or plant meeting in which necessary actions and negotiations are taken. For big

issues management committee will be formed including all the departmental Heads.

8. Separation

The first function of the personnel manager is to secure an employee from the society and the

last function is separating the employee from the company and to return him to the society.

Separation occurs due to:

Retirement

Discharge

Quitting

Lay-off



For ensuring the welfare of the retire employees the company arranges some benefits like PF,

gratuity, superannuation grants etc.

Provident Fund

P.F. accumulation of employees of Sud-Chemie kept in an exempted fund which is

maintained by Sud-Chemie India Employees Provident Fund Trust. Trust includes

representatives of employees and management in which chief controller corporate finance

acts in the capacity of Management Trustee. Representatives from the employees are

selected through an election. Since the P.F. accumulations are kept in trust, it becomes easy

to settle the claims of retired / resigned employees without any delay, Periodical meetings are

arranged so that decisions are taken on the loan application from the employees.

Gratuity

Gratuity of Sud-Chemie is maintained with LIC in the form of Gratuity Fund. When an

employee is retired or resigned after 5 years of continuous service, gratuity amount payable

to him is worked based on the last drawn salary and number of service years. Based on this,

the retired/resigned employee gives a form “I” showing his consent to the amount. After this

a claim is forwarded to LIC for settlement. LIC settles this claim by issue of cheque in the

name of “Sud-Chemie India Pvt. Ltd. – Gratuity Fund Account”. On receipt of this cheque

from LIC, counter cheque is issued to employee and receipt of the same is obtained for future

record.

Superannuation

In order to provide better retired life to supervisory staffs, company is having a “senior staff

superannuation scheme”. This scheme is maintained with LIC and every year company

deposits a sum equal to certain percentage of total salary of supervisory staffs to this scheme.

Every year LIC issues a statement showing the amount accumulated against each employee.

On retirement of an employee who is member of this scheme, company forwards a GSCA

form to LIC asking for the various benefits that are offered. On receipt of this offer,

employee chooses any one of the same and the claim based on his selection is forwarded to

LIC which gets settled normally within a month.



But in the case of resignation of any employee holding a supervisory position or

above it won’t be possible to execute the recruitment process immediately. So the company

always demands two month prior notification of resignation from the employees.

9. Work Load Assessment

Due to the business improvements, work load of the employees also increases. When this

happens employees will inform the matter to the HR department through the HOD or

personally. When an issue like this arrives at HR department, the evaluation or verification is

done by referring the work study conducted by National Productivity Council and the

suggestions or standards put forwarded by them for each process. National Productivity

Council will do the work study in each organization covering all the process and suggest the

minimum required labor for each work process. So the company can evaluate the proposal

for manpower recruitment due to the work load increase at a future time. So by referring the

suggestions put forwarded by the national productivity council the HR personnel can easily

find the necessity of the recruitment.

10. Government Relations

Normally a manufacturing organization maintains relationship with several Govt.

departments. Some of them are:

Labor Department

Pollution Control

Factories Department

ESI

Provident Fund

These departments have direct or indirect control over the functioning of the organization.

FUNCTIONS OF CHIEF MANAGER, HR

1. RECRUITMENT: One of the important functions of HR manager is the recruitment,

the company’s sales is growing at a percentage of 25%, due to this business improvement,



work load also increase when it happens employees will directly inform the manager about

this so that the manager can take necessary actions. Also when the company management

decides on any future expansion plans then these plans will be communicated to the head of

the departments.

2. GENERAL OFFICE ADMINISTRATION: General Office administration includes all

the necessary actions needed for the smooth functioning of an office

3. ATTENDANCE ASSESSMENT : HR manager assess the attendance status of all

employees. For this the executives will assist him.

4. LEAVE APPLICATIONS : Regarding leave applications the primary aim of the

manager is to ensure adequate manpower for every day so that the firm will function

smoothly. Avoid manpower shortage due to cumulative leave application for same period.

5.GOVERNMENT RELATIONS: HR Manager act as the communicator for the

organization to the Government.

6. UNION RELATIONS: Trade unions are common in industrial organizations. HR

manager is responsible for maintaining the relationship with the trade unions.

7. HANDLING EMPLOYEE RELATED PROBLEMS : If the employees have any

problem (in workplace) they will report to HR manager. It is the responsibility of the HR

manager to listen to their complaints and take necessary actions.

8. ENSURING ADEQUATE FACILITIES: Like canteen, office, Furniture etc.

9. MAINTAINING THE PAPERS: Papers regarding land, vehicles etc. which are owned

by the company. He has to ensure the payment of tax, insurance etc. pertaining to those

assets.

FUNCTIONS OF SENIOR EXECUTIVES

Books the ticket for travelling

Maintains the records of workers

Handles the HR related matters



He reports to the Chief Manager, HR

FUNCTIONS OF EXECUTIVES

Time office function

Maintains the leave records

Records absenteeism of employees

Monitor ESI formalities

Handle the contract workers’ attendance

He reports to Senior Executive

FUNCTIONS OF RECEPTIONIST

Attends the phone calls

Check the mails & reply to the mails of the organization

HR POLICY

Selection is based on the merit

Promotions are based on the performance of the employees

TRAINING AND DEVELOPMENT PROGRAMMES

Like any other organization SCIL also have concern on their employees performance.

So they always give attention to provide training programmes to the employees whenever

possible. Various training and development programmes provided by the SCIL are:

In house training

Softskill training

Conferences

Seminars

APPRAISAL MECHANISM



The main appraisal mechanism adopted by SCIL is Rating Scale Mechanism. A

performance audit is too done once in a year in the organization. Marks are allotted to each

employee out of 100, based on the following criteria.

Attitude towards work

Behavior in the organization

Technical knowledge

Safety knowledge

Seniority (only n case of workers)

In Sud-Chemie, performance evaluation forms are used which incorporate all the

criteria given above. These forms are forwarded to the entire department heads so that they

can fill up the forms corresponding to each employee in their department, it is their

responsibility to fill up the evaluation form and return to the HR department. For each

employee, immediate supervisor or the HOD will be accessing the performance. After filling

the form HOD will return it to the HR department. HR people will process the information in

the filled forms and assign mark for each employee out of 100. Those who get a score below

35 will be warned for poor performance. Training programs will be arranged for them to

improve their performance. Based on the score employees are categorized to poor, average,

good, outstanding etc. Those who scored above 85 are eligible for promotions. Promotions

are granted to them according to the availability of vacancies

DISCIPLINARY PROCEDURES

SCIL is very strict in discipline. Any misconduct of employees is identified and

appropriate punishments are given to them. Various punishments followed by the

organization are:

Warning

Suspension

Increment barring

Promotion barring

Dismissal

When misconduct occurs from any worker the concern supervisor will report to HOD of the

respective department. The HOD then will report to the HR department. The HR manager

will take the necessary action against it by giving suitable punishments for the misconduct



WAGES AND SALARY ADMINISTRATION

The wage and salary of the employees are administered by the HR department with

the help of Finance department. The HR manager decides the wages and salaries of each

employees of the company after a discussion with the Vice President, Edayar. The Finance

department maintains the records of salaries and wages of each employee.

The salaries are paid to the office staff of the organization based on their attendance.

Their salary is paid through the bank. SCIL have a multiple banking arrangement for salary

payment. Salary cutoffs on the basis of attendance of the employees are there in SCIL. An

attendance bonus is provided on the other hand i.e. 12 days extra salary. The various banks

associated with the SCIL are:

Federal Bank

SBI

SBT

HDFC

The wages are paid to both the lower level employees (monthly) and the contract

workers on a daily basis through in the form of cheque. The HR manager is accountable for

the salary and wage administration in SCIL, Edayar.

WORKING TIME AND SHIFTS

The normal work timing of SCIL, EU is 8AM to 4PM. There are 3 shifts in SCIL:

1st shift - 8AM to 4PM

2nd shift - 4PM to 00Hr

3rd shift – 00Hr to 8AM

MANAGEMENT OF TRADE UNIONS

Trade unions are common in all industrial organizations. There are two trade unions

in the SCIL. It commenced in the year 1980. All the employees of the organization are trade

union members. It is formed for the welfare of the employees. It sees into the complaints of



the employees. The head of the trade union bring these complaints into the notice of the HR

manager. The HR manager is responsible for managing the trade unions. HR manager

handles all the disputes of the trade unions through meetings & discussions with the trade

union members.

In the year 2005, a pretty fierce dispute occurred between the trade union and

management regarding the salary increment. It leads to 3 months lock out. Later the issue was

settled by the management by agreeing the demands of trade unions.

3.2.6 PURCHASE DEPARTMENT

Purchase department personnel are responsible for the purchase of raw material, office

stationeries, spares for office and machineries etc. Purchase department is linked with all the

other departments. Whenever they require any commodity, they will inform the purchase

department and request them to take necessary actions. Purchase department is responsible

for the selection of vendors, inviting quotations, tenders etc.

Normally the items which have to be purchased are:

Raw material

Spares

Fuels

Office Stationery

Lab Equipment

Machinery

Gift and special items (as per the request of HR Dept)

Out of these the most important one is the raw material. Raw materials are

essential for continuing the production. Normally the marketing department will be

forecasting the future sales based on the previous year sales. From this forecast it is

possible to find out the yearly and monthly production requirement. According to this

requirement production department will be scheduling the production and required raw



material estimate will be given to the purchase department. Raw material procurement

has a very important impact in the profitability of the firm, since it has a significant

share in total cost also optimum level of raw material should be maintained to avoid the

problem of over stocking and under stocking. Over stocking of raw material will result

idle investment of money (dead money) which is not appreciated.

Structure of purchase department

Fig. 3.8 Structure of the Purchase Department

For all the purchases other than the regular raw material purchase (derived from the

sales forecast) a committee called purchase committee is formed, which includes the

delegates from the purchase department and from other department for whom the commodity


Functional Administration

Purchase Manager (Materials Manager)

VP, Edayar unitDelhi Unit

Sr. Executive Purchase

Associate Executive


is purchased. In the committee meeting decision regarding vendor selection, brand etc. are

taken. But for normal production raw material supply is handled without discussing it in the

committee since, it is vital for the scheduled production.

Normal production raw materials are purchased on regular basis. The special

items and urgent requirements are discussed in the committee meeting. If the requirement is

very urgent and there is no adequate time to call for a meeting then the purchase manager

takes the necessary decision with the permission from higher authorities.

For production each month’s raw material requirement will be estimated by the

production department. This one month material requirement categorized to weekly

requirement along with the upcoming two months material requirement budget is passed over

to the purchase department ie, on the last week of every month purchase department will get

the material requirement estimate for the upcoming three months. This three months

requirement is given so that the purchase department will get enough time to plan the

requirement process. While giving the requirement material already in stock is also

mentioned with that so that adequate calculations can be done to find out the actual

requirement for purchase. Computerized ERP system implemented in Sud-Chemie will

automatically do the necessary calculations and communication.

The company will be already made some contracts with the selected vendors for raw

materials. According to the requirement and stock available stated in the document, the

purchase manager takes the necessary actions and contact the vendor for supply of raw

materials. The order is placed according to the requirement while considering the

transportation cost, overstock and under stock problems etc. ie., at an optimum time the order

is placed so that it will not cause any overstock or under stock problems. Ordering time is

found out while considering all the contingencies or delays. Like delays in check posts for

clearance, vehicle constraints or problems etc. so that the raw material will arrive at the

required time even some contingencies happens.

Even the raw material purchase is a standardized one in Sud Chemie and up to some

extend flexibility is incorporated due to the varied requirements of the customers. Some

customers may require highly reliable and high quality product without any cost constraints,

some may order for low quality one. It is because of the importance or accuracy requirement

of the process they are handling. For the above stated products this will be included in the

committee and if it is spares then maintenance department personnel will be included. The

main aspects discussed in the committee are:



Base price

Tax structure

Transportation

Quality etc.

The primary aim is to reduce the overall cost rather than reducing unit price. For

example a distant vendor will be neglected even though he offers a low price per unit of the

commodity, because of the large transportation cost and delay. So an optimum choice is

made among vendors. After fixing the vendor the order is placed. In some case follow up

also made for ensuring timely arrival of the product.

When the material arrives at the factory premise, it will be directed towards the store.

Normally vendors will be sending the delivery note and invoice with each batch. Store

executive is responsible for the initial verification of the material arrived. He checks whether

the quantity specified in the invoice and actual quantity in the arrived batch is matching or

not. Immediately after the preliminary check store executive will be preparing the MIB

(material inward booking). After this the store executive will inform the concerned

department for inspection. Chemicals will be inspected by the QA department, machineries

and equipments will be inspected by the maintenance department while other items including

some general raw materials in standardized form will be inspected by the store executive

himself.

After the inspection store executive will be preparing the material receive note, on

reception of this accounts department will make the payment. This material receive note is

forwarded to accounts after passing through the purchase department, so that they can verify

the

terms and price etc. Also purchase department handles the negotiation with the

contractors for specific works, like boiler maintenance, painting etc.

Functions of purchase department

Purchases raw materials as on the behalf of production department

Keeps minimum re-order level

Daily monitoring of raw materials

Fix re-order level



Arrangement of raw materials, spare parts, consumables, outsourcing services as per the

requirement of organization.

Enquire about materials

Receiving the codes and its comparison

Issue of order

Delivery of materials

Custom clearance on imported raw materials

Arrangement of transportation

Handling of issues related to quality problems, check post issues etc.

3.2.7 IT DEPARTMENT

SCIL Network (WAN)

Sud-Chemie India Ltd. has its offices in Delhi, Mumbai, Cochin, Baroda and these are

connected using VPN (Virtual Private Network). Sud-Chemie uses the networking services of

2 companies, Tata and Reliance. There are about 210 systems supported by the network

including desktops and laptops. There are 10 servers.

At its Cochin unit, the Admin Block, R&D and QA departments are Wi-Fi enabled.

SCIL Network Security

There are both wired and wireless networks at SCIL, wired for daily use and wireless for

portable use. The network is MAC filter and password protected. The Guest Network is a

highly secured wireless network and is password protected.

There are 3 levels of security-at the user level (password security), system level(Symantec

security) and Network level(firewall security).

The company provides secure limited access to the internet.

Data Storage and Backup



At Sud-Chemie, data is stored in centralized locations. Each user has 2 locations for storing

data in the server. Storage quota is allocated for each user. There are also common folders for

sharing data between users.

Structure of IT Department

Fig. 3.9 Structure of IT Department

3.2.8 STORES DEPARTMENT

Activities of this department are controlled by stores in charge and he will be reporting to the

Materials Manager of Purchase Department. He is responsible for the safe keeping of the

materials and issuing the same when a demand note received from an authenticated official.

He maintains a close contact with the purchase department and informs about the material, if


Corporate IT Structure

IT Network and Security Management

VP- Corporate IT

IT Infrastructure Management

Executive IT

Software & Licensing Management

Executive ITExecutive IT


any, on receiving the same. He is responsible to inform the purchase officer regarding those

materials which are reaching re-order level.

Structure of Stores Department

Fig. 3.10 Structure of Stores Department

A stock ledger is maintained in the department which keeps record of each item and

its current stock. For each item specific code numbers are assigned so that it is easy to keep

record of the stock of each item. The stock ledger is updated after each issue or intake.

The major functions of store department are:

Receiving and safe keeping of materials

Issue of materials on request

Keeping track of current stock, inform the purchase officer regarding those materials

which are reaching re-order level.

When the material ordered by the purchase department, arrives at the factory premise, it will

be directed towards the store. Normally vendors will be sending the delivery note and

invoice with each batch. Store executive is responsible for the initial verification of the

material arrived. He checks whether the quantity specified in the invoice and actual quantity

in the arrived batch is matching or not. Immediately after the preliminary check store


Materials Manager

STORE

EXECUTIVE


executive will be preparing the MIB (material inward booking). After this the store executive

will inform the concerned department for inspection. Chemicals will be inspected by the QA

department, machineries and equipments will be inspected by the maintenance department

while other items including some general raw materials in standardized form will be

inspected by the store executive himself.

Items in stock are issued on arrival of demand note from other departments. This demand

note will include the item number, quantity, date etc. materials will be issued only when the

demand notes are approved by the concerned HOD i.e. , if the QA department needs any

chemical then they will prepare the demand note, approve it by the HOD QA and forward it

to the store. If the demand note seems to be valid, the store executive will issue the requested

item and update the stock ledger. If any item issued to one department, kept idle or it is not

been used then it can be returned to the store. In that case a return note is prepared by the

concerned department and forward to the store along with the item. Store executive will

include that in the stock ledger after verifying the quantity.

So in general documents handled by the store executive are:

Material inward booking (MIB)

Material receive note (MRN)

Demand note

Return note

Store executives will function in the general shift ie, 8 am to 4 pm. Specific time slots are

allotted for material issues. Since the production is continued throughout 24 hours a day,

they will demand the required raw materials for overnight production in the day shift itself.

If any contingency occurs or any urgent maintenance requires in the off time, then the shift in

charge

can take the items in the presence of security personnel after asking permission from the store

executive over phone.

Functions of Store executive



Request for materials

Receipt of materials

Counting materials

Check the quantity and quality of materials

Enter the details about the materials received in the MRN

3.2.9 QUALITY ASSURANCE DEPARTMENT

This department plays an imperative role in the organization as it ensures the quality of the

products manufactured by the production department. The term Quality Assurance is

different from that of the term quality control. In fact Quality Assurance is the broader

activity which involves quality control within it. It is said so because Quality Assurance is

done right from the procurement of the raw materials and at each stages of production. This is

done in order to detect the problems if any occurred at any stages of production and to take

immediate action against it so as to produce the required product with the specifications by

making necessary adjustments in the production process. The Quality control is done at each

stages of production to ensure whether the products are up to the standard norms set by the

ISO. This will help the organization to enhance the product and thereby achieves customer

satisfaction.

Quality policy

Sud-Chemie EU is committed to enhance customer satisfaction by managing

processes, products and activities in a manner so as to achieve continual improvement of the

system. To achieve this:

1. Maintain quality system in accordance with ISO:9001:2000 standards

2. Understanding the needs and expectations of the customer and incorporating

these into the quality plan

3. Analyze customer satisfaction based on the feedback of the customer

4. Establish and review quality objectives

5. Involvement of all concerned for continuous improvement

6. Training and retraining of personnel

7. Spreading customer requirement throughout the organization



Structure of QA department

Fig. 3.11 Structure of QA Department

MANAGEMENT SYSTEM STANDARDS

There are several management system standards pertaining to various aspects of

management. Some of the system standards that are of concern to the stake holders are: ISO

standard pertaining to quality management system and environmental management system,

brought out by the International Organization for Standardization (ISO), which is the world’s

largest developer of standards. ISO is a network of national standards institutes of 156

countries, of the basis of one member per country, with a central secretariat in Geneva,

Switzerland, that coordinates the system.

ISO 9000


Chief Manager, HOD-QA

Executive Executive ExecutiveExecutive Executive

Cleaner Technician


This is the general term used for the ISO 9000 series of standards applicable to the quality

management system. An organization’s quality management system can be certified to ISO

9001:2000 standard provided it meets the requirements prescribed therein.

ISO 14000

Similarly ISO 14000 is the general term used for the ISO 14000 family of standards.

ISO 14001 contains a set of requirements to define the operation of the environmental

management system. An organizations management system can be certified to ISO

14001:2004 standard provided the organization meets the requirements of this standard.

Since the requirements are prescribed in general form; both these standards have the

flexibility to be applied to any organization.

OHSAS 18001

This Occupational Health and Safety Assessment Series (OHSAS) specification and

the accompanying OHSAS 18002, guidelines for implementation of OHSAS 18001, have

been developed in response to urgent customer demand for a recognizable occupational

health and safety management system standard against which management systems can be

assessed and certified. OHSAS 18001 has been developed to be compatible with ISO 9001

and ISO 14001 management system standards. OHSAS 18001 defines OH & S – MS as part

of the overall management system, which facilitates the management of OH & S risks,

associated with the business of the organization.

OHSAS 18001 is neither an ISO standard nor a national standard. However, it has

been used as the basis for several national standards. This standard has been developed as

joint effort by BSI, National Standards Authority of Ireland, South African Bureau of

Standards, standards and Industry Research Institute of Malaysia and several other

certification agencies including BVQI.

The Edayar unit of Sud-Chemie is currently certified to ISO 9001:2000, ISO

14001:2004 and OHSAS 18001 standards. But the management recognizes that no

certification is of any relevance unless customer satisfaction is ensured. It is a fact that the

consequences of the failure of a catalyst while in use may cause the customer to suffer huge

losses. In order to avoid such circumstances the company has been taking extreme care at

each stage of the manufacturing operations. No stage is passed out unless our stringent



quality assurance norms are satisfied. The customers will vouch for the end result. Always

maintaining excellent quality reflected in initial activity and sustainability of activity. And

improved performance and life, charge after charge. No wonder almost all major customers

are married to them for ages for their catalyst requirements.

R & D division of the company was certified ISO 9001 on 27.07.1999

Cochin Unit got its ISO 9002 certification on 18.6.1996

Baroda unit got its ISO 9002 certification on 4.4.1997

Cochin unit and R & D division has been certified ISO 14001 on 8.8.2000

Environmental Policy of Sud-Chemie India Ltd:

Sub Chemie India Pvt. Ltd., Edayar unit is committed to minimize environmental degradation

by managing process, products and services in an environmentally responsible and lawful

manner so as to achieve continual improvement in environmental performance.

For this the following is given due importance:

1. Comply with applicable statutory, regulatory and other requirement.

2. Minimize adverse environmental impact by upgrading production facilities and process

whenever required

3. Optimize resource utilization especially raw material, energy, oil and water

4. Impart appropriate training for to the employees

5. Implement and maintain EMS to 14001:1996 standards.

6. Develop green belt around the factory and recycle treated effluent for irrigation

7. Recover/recycle wastes or find alternative uses

8. Prevent pollution

9. Make the policy available to interested parties.

3.2.10 RESEARCH AND DEVELOPMENT DEPARTMENT



“Süd-Chemie´s Strategic Research and Development revolves entirely around industrial

biotechnology. Focus is on progress and innovation based on the sustainable use of renewable

resources.

Süd-Chemie´s Strategic Research and Development has set itself this goal – efficient and

sparing use of natural resources in order to create more quality of life for humans and the

environment. We see sustainability as all-embracing – ecological, economical and social.

Our scientists make use of both their biotechnological expertise and the many years of

experience gained in the course of our classic catalyst and absorbent activities. Based on this

extensive technology portfolio, we can offer our customers one-stop system solutions for

sustainable resources.”

Functions of Research and Development Department

Improvement of existing catalysts

Development of new catalysts

Technology Absorption (communicating with national as well as foreign research

institutes, adopting new technology and rendering them into commercial practices.)

Investigation and Review of catalyst performances and failures.

STAGES OF NEW PRODUCT DEVELOPMENT

1. Idea generation (brain storming)

2. Literature survey

3. Review of the literature

4. Review of available resources

5. Preparation of product

6. Application & validation of product



7. Scale up

8. Commercialization of product



Structure of R&D

Fig. 3.12 Structure of R&D Department


Secretary Deputy ManagerDeputy Manager

Cleaner CleanerLAB Pilot Plant

ExecutiveExecutiveExecutive Executive Executive Executive

Tech-nician

Tech-nician

Tech-nician

Tech-nician

Tech-nician

Tech-nician

Tech-nician

Tech-nician

Tech-nician

Functional Administration

HOD- VP, R&D

CEO, Edayar unitM&TS


CHAPTER – IV

SWOT ANALYSIS



4. SWOT ANALYSIS

SWOT analysis is conducted in order to find out the Strengths, weakness, opportunity and threat of the organization.

The SWOT analysis of SUD CHEMIE India Pvt. Ltd. is as follows:

4.1 STRENGTHS

4.1.1 ESTABLISHED AROUND THE WORLD

Sud-Chemie is a highly innovative, listed specialty chemicals enterprise

headquartered in Munich, Germany. Operating on a world wide scale, its core competency

focuses on now-how in the sector of chemistry and physics for surfaces comprising finest-

grained inorganic matter. With more than seventy sales and production companies

worldwide, Sud-Chemie seeks to expand the leading positions held in many markets. For

many years, more than 75% of Group sales have been realized with customers outside

Germany. It systematically exploits the potential offered by fast growing regions, notably in

Southeast Asia and the Middle East. Since Sud-Chemie India is a part of this massive

worldwide setup, it enjoys the benefits from it.

4.1.2 IMPROVED INNOVATIVE ABILITY

The most important lever for Sud-Chemie’s internal growth and profitability is a high level of

innovative ability. The growth targets cannot be realized unless succeed in translating

technological leadership into new, superior and above all, marketable solutions for the

customers. To ensure that in its own specific areas of activity Sud-Chemie remains on the

leading edge of technological progress in the long term and is able to expand its technology

platform, internal research and development processes were optimized from time to time.

Outstanding researches with adequate scope for creativity are the basic requirement for

innovative solutions. Efforts are therefore being intensified to bind researchers to the group

on a lasting basis and enlist top international experts. The complexity of advanced



technology, as applied in specialty chemistry, calls for multidisciplinary co-operation within

the company itself, but also beyond corporate boundaries. For this reason, Sud-Chemie

cultivates a global knowledge network with well-known research institutes and universities.

These research partnerships allow the company’s own resources to be more selectively

employed and development times shortened.

In addition to dynamic innovation, the Group’s ability to react quickly and flexibly to specific

customer needs serves to guarantee success. Sud-Chemie sees itself as a partner for its

customers, not only during the marketing process, but also at the development stage.

4.1.3 CONSISTENT CUSTOMER ORIENTATION

It is the customer who ultimately decides on a company’s growth and its success. The aim is

to bind customers in the long term based on outstanding performance. Enhanced key account

management activities have expanded the scope of co-operation with major customers. As a

result of the trend towards global concentration, an increasingly large proportion of sales

accrue from globally-active enterprises holding strong market positions. Marketing activities

have therefore been geared more intensively towards these key customers.

4.1.4 RESEARCH AND DEVELOPMENT

Sud-Chemie India started its R & D activities along with the commencement of

manufacturing operations in 1970. Because catalyst technology is highly research oriented

and have to keep pace with the developments worldwide. During these years Sud-Chemie

were not confined to improvements in conventional catalysts as well. Today Sud-Chemie has

to its credit, the honor of developing more than 20 catalysts, all of which are performing

successfully in India and abroad. The latest from Sud-Chemie is Ultra Deep Hydro

Desulphurization Catalysts for treating Diesel which can reduce Sulphur to less than 50 ppm

from 2500 ppm. A number of catalysts developed are import substitution ones. R & D

Division is supported by a well-equipped Pilot Plant. From lab scale to Commercial Scale is

achieved here. After perfecting technology for commercial production it is passed on to the

manufacturing units. This unit got DSIR recognition 1974.



Sud-Chemie India’s R & D division and the manufacturing units work hand in hand with

various National Laboratories and Universities. They have successfully commercialized

certain products developed by National Chemical Laboratories (NCL). R & D work in close

association with Indian Institute of Chemical Technologies (IICT). Sud-Chemie have

entered into a memorandum of understanding with Indian Institute of Petroleum (IIP) for

development of certain new and import substitution catalysts. Also working jointly with

CSIR laboratory, NCL, IICT and IIP for the development of some catalysts for refining and

petrochemical applications. Sud Chemie’s R & D work in association with Cochin

University of Science & Technology on Catalyst Research.

4.1.5 CERTIFIED COMPANY

All international certifications obtained by the company are solid proof for the commitment

to quality. They work with properly laid out systems and procedures. There are well laid out

procedures and work instructions so that nothing is left to chance.

R & D division of the company was certified ISO 9001 on 27/07/1999

Cochin unit got its ISO 9002 certification on 18/06/1996

Baroda Unit got its ISO 9002 certification on 04/04/1997.

Cochin unit and R & D division has been certified ISO 14001 on 08/08/2000

Now all have been certified ISO 9001:2000 and ISO 14001 standard.

4.2 WEAKNESSES

4.2.1 LABOR ISSUES

The world has changed but Kerala has not, as far as the industrial relations scenario in the

state is concerned. Sweeping changes have taken place in the world and the rest of the

country, but we try to revisit our old values, beliefs and practices and attempt to re-examine

and possibility reposition ourselves in the world. A detailed study conducted in the state

reveals that the total number of man days lost on account of strikes in Kerala shot up from

539,138 in 1997 to around 3.25 million in 2005. Likewise, the man days lost on account of

lockouts also went up from 418,035 to 1.85 million and man days lost due to layoffs also



drastically went up from 1.38 million to 5.68 million. In line with this trend Edayar Unit had

its share of strikes/lock out in 1973 (14 days), 1975 (45 days), 1989 (40 days), 1998 (105

days), 2003 (210 days) and 2004 (7 days). The need of the hour is for all stakeholders – the

government, managements, trade unions and the labor department to jointly plan and execute

certain identification common points of interest and concern.

4.3 OPPORTUNITIES

4.3.1 BETTER USE OF NATURAL RESOURCES

Mankind is currently facing great challenges. We are consuming raw materials at an

increasing rate. Now arise the questions- How can natural resources be utilized more

effectively? How can we secure our energy in fuel needs, as oil become more and more

scare? What can we do to compact global warming? The answers to these questions can only

be found with the help of innovative solutions provided by the chemical industry.

4.3.2 NEW MARKETS

A good source of renewable transportation fuels and lubricants is non-edible and used

vegetable oils. Though vegetable oils can be directly used in diesel engines, their high

viscosity (often> times that of diesel) and low pour points prevent their direct use. They can,

however, be Trans – esterified with lower alcohols, typically methanol, into the fatty acid

esters (FAME, fatty acid methyl ester) and used as diesel substitutes. Already, more than 6

Million tpa of biodiesel is produced globally today, much of it in Europe, principally

Germany. The major source of bio – diesel is Rapeseed oil in Europe, while it is Soya bean

oil in U.S.A. the Trans esterification reaction is catalyzed both by bases and acids. Catalyst

industry has a future market in the case of vegetable oils refining.

4.3.3 GTL TECHNOLOGY

Worldwide demand for clean, reliable and affordable energy has never been greater. New

technologies are needed to produce more oil and natural gas from remote or “stranded”

locations. Gas to Liquids (GTL) conversion is an umbrella term for a group of technologies



that can create liquid hydrocarbon fuels from a variety of feedstocks. The conversion of

natural gas into liquid fuels is an attractive option to commercialize abundant gas reserves.

GTL, with virtually unlimited markets, offers a new way to unlock large gas reserves,

complementary to other traditional technologies such as Liquefied Natural Gas (LNG) and

pipelines. GTL has the potential to convert a significant percentage of the world’s estimated

proved and potential gas reserves which today holds little or no economic value. In essence,

GTL uses catalytic reactions to synthesize complex hydrocarbons from carbon monoxide and

hydrogen. So in short the GTL is an area where catalyst producers can look ahead.

4.3.2 ENVIRONMENTAL REGULATIONS

In the future, however, as environmental regulations abound and refining processes become

more sophisticated, there is room for new generations of catalysts that may make the business

more attractive for its participants.

In fact, environmental legislation mandating lower sulfur levels is a strong driver for catalyst

demand and development. That’s really the story going forward from 2000 and 2001.

“Environmental regulation is key, worldwide. We have to get cleaner fuels, “says First M.

Dautzenberg, vice president of technology development for ABB Lummus in Bloomfield,

N.J. In order to increase production of cleaner transportation fuels, “we will need

considerably more catalyst than we are using at this moment,” he continues. The diesel

specification for sulfur used to be 300 ppm; now it is about 50 ppm, “Dautzenberg adds.

Whether refiners install more catalyst or use the same system while regenerating more

frequently, he emphasizes, “It all leads to more catalyst per ton of product.”

4.4 THREATS

The total sales of catalyst for oil refining industry come close to total catalyst usage because

very few oil companies make their own catalysts. The growth rate in oil refining catalysts

tends to track economic activity, so it is low; 1 or 2% at best. “The business is growing at the

rate of energy usage or slightly above because of the need for more sophisticated processing,”

says Rick Penning, assistant to the senior vice president at catalyst technology supplier UOP

and head of its catalysts business task force.



Because the emphasis for refineries continues to be on cost reduction, there is tremendous

pressure to lower catalyst costs, to the detriment of catalyst makers. Even though oil prices

have corrected themselves in the past year, leading to oil industry announcements of record

profits, cost pressure remains. Therefore, catalyst suppliers “have to always deliver better

performance but at the same or a very competitive cost”. However, if oil companies can

extract value in the performance of advanced catalysts, they are willing to pay a premium. A

sophisticated new catalyst that improves crude oil conversion just 1% will generate millions

of dollars of additional revenue that will justify its cost.

A negative market driver for refining catalysts has been consolidation within the oil industry

over the past 10 years. As companies merge, the oil industry is dominated by fewer, larger

companies that can exert greater pricing pressure on catalyst manufactures.



CHAPTER-V

FINDINGS AND SUGGESTIONS

CONCLUTION

5. FINDINGS AND SUGGESTIONS



FINDINGS

No strikes have been reported for the last 10 years and it shows the relationship of

workers and management as a good one.

SCIL have a flexible credit policy. They give credit facility up to 30-45 days and they

are getting a credit of 60 days from suppliers

No major environmental pollution has been reported for the past 50 years of operation

The customers have no rejection for SCIL products, which shows the product

satisfaction

New technology of membrane cell has the advantage of pollution free environment

Insufficient first aid facility.

SUGGESTIONS

The company must activate the research and development cell in order to have new

inventions in this field

In order to increase the production, the company must introduce some motivation

schemes for the employees

For the smooth functioning, they must invest a reasonable amount of working capital

Improve the first aid facilities by providing free medicines and treatments

The company should conduct market research to find out the movement of the

products and to identify potential customers

5.1 CONCLUSION



My study at Sud-Chemie India Pvt. Ltd. was quite an enriching experience for me. It

gave me quality exposure and helped create a first-hand impression of an actual

organizational environment. It was possible for me to relate the subjects learned at the

academic sessions in my MBA program to the functioning at the business concern.

The study not only exposed me to the organizational atmosphere but also gave me a

look into the chemical/catalyst industry. Certain organizational characteristics like the flow of

information, corporate decision-making process by various echelons of the functionaries in

the organization could be visible from a closer view.

For the success of an organization, it is important that there should be strong and

harmonious relationships between groups and teams in the organization and there should be

an underlying spirit for the fulfillment of the organizational goals. The need for cohesiveness

and collective participation by members in the organization should be prevailing for any

entity to survive ad sustain. To maintain such a healthy and conducive environment at all

levels is a challenging task for the management.

This study was done with the prime motive of analyzing and understanding the

overall functions of an organization and its various departments, reporting and control

procedures and the ways in which each department of an organization is interdependent in

smooth functioning of an organization as a system. In spite of the existence of a few

limitation factors, whole hearted effort has been taken to make this project an achievement.



5.2 BIBLIOGRAPHY

i. SCIL.”Sud-Cemie India Creating Performance Technology”

ii. Govt. of India Publication, “Constitution of India”

iii. www.Businessline.in

iv. www.sud-chemie-india.com. Munich: SCIL, 2012, Web.

v. F.A cheru Nilam,” International Business”, Himalaya

Publication

vi. Academy of Business Studies, “ The WTO”


http://www.Businessline.in/