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I hereby declare that the project report entitled “ A STUDY IN ORGANISATION WITH
SPECIAL REFERENCE TO INDIAN RARE EARTH LIMITED MANAVALAKURICHI “
written and submitted by me under the guidance of Mr. --------------------------------,senior lecturer
in management studies is my orginal work the empirical findings in the report are based on the
data collected me and I have not copied from any other report submitted to the university
I.J. Vineath
I also thank all the employees in the INDIAN RARE EARTH LIMITED
MANACVALAKURICHI for supporting me in completing the project report
CONTENTS
I INTRODUCTION
1.1
1.2
II PROFILE
1.1 Industrial Profile
1.2 Company Profile
III DEPARTMENTS
1.1 Human Resource
1.2 Marketing
1.3 Finance
LIST OF TABLES
LIST OF TABLES
4.1 Distribution of table showing experience of employees
4.6 Distribution of table showing the opinion whether the job lower the social prestige
4.7 Distribution of table showing that the income satisfying the needs
4.13 Distribution of table showing provided good welfare facilities & employees
4.15 Distribution of table showing energy and time spend on job affect life adversely
4.16 Distribution of table showing the present job regardless of pay received
4.18 Distribution of table showing the workers involved the trade union
CHAPTER I
INTRODUCTION
SYNOPSIS
LIFE IN ORGANISATION
Each and every organization has its own importance in the economic wealth of the nation. Different
organization meets different needs of people by offering different products and services. Due to globalization,
the world has changed into a global village. In this fast changing business scenario, it is imperative for every
entrepreneur to have a vivid understanding of the functional application of the new age business. As a part of
the academic curriculum each student has to undertake an organizational study to get a practical exposure.
This study is conducted at INDIAN RARE EARTHS LIMITED MANAVALAKURICHI
An organization can be described as a open system that has transactions with its
environment in order to survive and prosper an organization must be obtained a favourable ratio of
inputs and outputs
LOCATION
The deposit is quite rich with respect to Ilmenite, Rutile and Zircon. And the mineral Ilmenite
happens to be of weathered variety analyzing 60% Titanium Dioxide (TiO2). The present annual
production capacity of Chavara unit engaged in dry as well as wet (dredging/ up gradation)
mining and mineral separation stands at 2,00,000 tone of Ilmenite, 1,14,500 tones of Rutile,
11,750 tones of Zircon and 10,000 tones of Sillimanite. In addition to that, the plant has facilities
for annual production of ground Zircon called Zirflour and Micozir of the order of 6000 tones and
300 tones respectively.
IREL manavalakurichi is one of the oldest and leading public sector undertakings under the
Department of Atomic Energy (DAE). It is an ISO 9001:2000, ISO 14001:2000; OHSAS 18000
certified company supplies beach sand minerals to the foreign and domestic market. It caters the
requirements of developed countries like U.S.A, U.K, Germany, Australia, Japan etc. The major
mineral products of IREL are Ilmenite, Rutile, Sillimanite, Zircon and Zirflour
IRE in manavalakurichi is known for supplying of Ilmenite (TiO2 bearing mineral) to the TiO2
industry. IREL Chavara is located 10 km north of Kollam, 85 km from Thiruvananthapuram and 135
km by road Kochi is perhaps blessed with the mineral sand deposit of the country. The plant operates
on a mining area containing as high as 40% heavy minerals and extending over a length of 22km in
the belt of Neendakara and Kayamkulam. The deposit is quite rich with Ilmenite, Rutile and Zircon
and mineral Ilmenite happens to be of weathered variety analyzing 60% TiO2. The present annual
production capacity of Chavara unit engaged in dry as well as wet (dredging/up gradation) mining
and mineral separation stands at 200000t of Ilmenite, 114500t of Rutile,1175t of Zircon, and 10000t
of Sillimanite. In addition the plant has facilities for annual production of ground Zircon called
Zirflour (-45 micron) and Microzir (1-3micron) of the order of 6000t and 500t respectively.
IREL Chavara is one of the oldest and leading public sector undertakings under the control of
Department of Atomic Energy. It is an ISO 9001:2000, ISO14001:2004, and OHSAS18001:1999
certified company supplies beach sand minerals to the foreign and domestic customers. The major
minerals products of IREL are Ilmenite, Rutile, Sillimanite, Zircon and Zirflour.
IREL is one of the major mineral producing public sector companies of its kind in India
In this study I will be covering organization as a whole briefly. An environment can be described as
an open system that has transactions with its environment. In order to survive and prosper , an
organisation must be obtained a favourable ratio of inputs to outputs. Necessary resource inputs must
be found for the organisation’s products or services. If a stable input-transformation-output cycle can
be maintained, then more efficient transformations procedure can be maintained. Thus an
organisation attempts to control over undependable source of supply and to insulate the core
transformation processes from any uncontrollable variations in input supplies or output demand.
Each organisation usually has one or more formal and explicit goals. One central goal of nearly all
organisations, whether explicit or implicit, is survival. Economic, political, cultural and scientific
developments in the external environment can appear as an organisation’s goal and have a bearing
on the life of people in that organisation. Major environmental elements affecting a business
organisation include customers, competitors, government agencies, consumer groups, labour unions,
owners or stock holders, the cultural milieu, suppliers of material and energy and socioeconomic
stability. It is essential to develop an adaptation to environmental changes because an organisation is
dependent on the environment in so many ways. Thus, it is important to monitor outside events and
develop plans to cope with relevant changes. Managing changes has become a priority area for
organisational behaviourists.
Mullins observes: “One particular aspects of the relationship between the individual and the
organisation is the concept of the psychological contract. It involves a process of giving and
receiving by the individuals and by the organisation. The psychological contract covers arrange of
expectations of rights and privileges and obligations which do not form a part of formal agreement
but still have an important influence on people’s behaviour”.
The nature and extent of individual expectations vary widely. It is difficult to list the range of
implicit individual expectation. And these change overtime, but these may include that the
organisation. These expectations are not bolstered by a statutory requirement placed upon the
organisation. Instead, they relate more to the idea of the social responsibility of management. The
organisation also has implicit expectations of its members: accept the ideology of the organisation,
to work diligently in pursuit of organisational objectives, not abuse goodwill shown by management,
uphold the image of organisation, show loyalty and not betray the position of trust.
a) Achieving organisational goals that are different from individual member’s personal goals.
b) Having sufficient involvement, commitment and initiative from organisational members.
It is unlikely that all expectations will be fully meet. There is a continuous process of
balancing and explicit and implicit bargaining. The nature of this expectation is not formally defined
and although the individual member and the organisation may not be consciously aware of them,
they still affect their relationships and influence behaviour.
The psychological contract is a useful concept of examining the socialization of new staff
members to the organisation. According to Kottar, for example, early experience has a major effect
on the individual’s career in an organisation and level of productivity. The extent of match between
individual and organisational expectations also influences employee willingness and the organisation
continuing to employ them.
Organisation is a principle of life without control over vital functions, co-ordinations between
organisation and regeneration of dead tissue, a living body soon turns into a corpse. Many valuable
species survive because of social organisation. These ants building their colonies antelopes move in
hard and monkeys have their troops. In this rudimentary specialisation of function, division of labour
and control and co-ordination through social co-operation increase the chances of survival of the
members.
Modern life is inconceivable without the invention of formal organisation. Without the rich
network of varied formal organisation in a developed society, their material prosperity would
quickly vanished social economic development implies as a necessary condition, the setting up and
effective functioning of a immense variety and number of formal organisation. Not just business
enterprises but every other form of organisation must thrive if socioeconomic development is to take
place. This is because of high degree of inter dependence of various organisational forms.
Life in formal organisation is rather different from life in social institutions like the family or the
community. It is far more disciplined, structured and impersonal and difficult to adjust for people
socialised into informality, expectations of warm interpersonal relationship, highly flexible time
schedules and much freedom of movement. But for socio economic development take place these
organisations must work effectively.
Formal organisation may be defined as collectives that are created by human for pursue specific
purposes with the help of formal structure and to provide goods and services to society that
otherwise either cannot be produced or produced at a very high cost, in which decision are taken
mainly on the basis of formally allocated authority to make decisions.
The formal organisation may not be able to satisfactorily provide the more sublime things of life
like love, peace and bliss. And it often does sell to society some damaging goods and services. The
organisation can frustrate the people who work in it through its rules and regulations. But it can be
designed to provide enormously varied range of goods and services for meeting human needs. It is
also enormously productive. It can provide millions of tonnes of steel, millions of car, banking
services for millions of customers and financial security for hundreds of millions of citizens without
these amazing tool civilizations is impossible.
Organisational climate is very important concept to be considered in studying and climate is very
important concept to be considered in studying and analysing management of organisations because
it has a profound influence on the outlook, wellbeing and attitudes of organisational members and on
their total performance.
Organisational climate is the manifestation of the attitudes of organisation members towards the
organisation itself. An organisation tends to attracted and keep people who fit climates so that its
patterns are perpetuated atleast to some extend.
INDUSTRY PROFILE
Introduction:
Organisation in the process of combining work, which individuals and groups have to perform
with the faculties necessary for its execution. So that they provide the boot channels for the efficient
systematic positive and co-ordinated application of the available effort.
I.R.E being an organisation, having the goal of earning profit for which people work in a
system with work relations and climate.
I.R.E is a large unit employing 803 persons in Manavalakurichi in Kanyakumari Dist in Tamil
Nadu state. The organisation started functioning on 24th April 1964 when it was taken by the present
management from the erstwhile private employer “Hopkin and William” and “Travancore Minerals
Company”. The one of which was started in the year
Rutile 18 10%
Zircon 21 14%
Monazite 8 7%
In India the installed production capacity for Ilmenite is around 5-2 lakh tpa (5-6% of global
Ilmenite production) and the production of Ilmenite and Rutile during 2004-2005 was over 3-5 lakh
tonnes and 1300 tonnes respectively.
Stag 87 575
Syn-Rutile
93 878
TiO2 Pigment
It can be seen that value will be increased about 100 time through value addition natural Ilmenite
Key success factor for the beach sand mineral industry are:
On August 18, 1950, Indian Rare Earths Limited (IREL) was incorporated as a private limited
company -jointly owned by the Government of India and Government of Travancore, Cochin with
the primary intention of taking up commercial scale processing of monazite sand at its first unit
namely Rare Earths Division (RED), Aluva, and Kerala for the recovery of thorium.
After becoming a full fledged Central Government Undertaking in 1963 under the
administrative control of Department of Atomic Energy (DAE), IREL took over a number of private
companies engaged in mining and separation of beach sand minerals in southern part of the country
and established two more Divisions one at Chavara, Kerala and the other at Manavalakurichi(MK),
Tamil Nadu.
After a gap of about 20 years, IREL commissioned its largest Division called Orissa Sand
Complex (OSCOM) at Chatrapur, Orissa. Today IREL operates these four units with Corporate
Office in Mumbai and produces/sells six heavy minerals namely Ilmenite, Rutile, zircon, monazite,
Sillimanite and garnet as well as various value added products. IREL is making profit for the last 6
years with its sales turnover reaching a peak exceeding Rs. 2600 million in 2000-01, with export
component of above Rs. 1000 million.
Chavara plant is engaged in the processing of beach sand deposits available on the coastal belt of
Neendakara- Kayamkulam.
BRIEF HISTORY
IREL’s history should not be narrated without mentioning the name of German Chemist Mr. Her
Schomberg who has realized that the shining yellowish- brown sand particles sticking to coir, a
coconut fiber shipped from India (1909), contained Monazite.
1948 The Government of India set up the Atomic Energy Commission under the Chairman ship of
Dr. Homi Bhabha. The export of Monazite was stopped and the possibility of setting up a facility to
process the beach sand mineral for the production of Rare Earths was examined.
1951 IREL became a full fledged Central Government undertaking under Department of Atomic
Energy and commenced construction of its Rare Earths plant at Udyogamandl in Kerala.
1952 Rare Earth was dedicated to the nation on December 24, by the late Prime Minister, Pandit
Jawaharlal Nehru.
1965 Opening of Minerals Division at Quilon in Kerala State with manufacturing facilities at
Chavara in Kerala and at Manavalakurichi at Tamil Nadu and a giant mineral sand separation and
synthetic Rutile plant at Chatrapur in Orissa (1986) OSCOM
CHAVARA PLANT
ALUVA
NEW DELHI
BANGLORE
MUMBAI
Products
IREL Chavara plant produces the major heavy beach sand minerals like Rutile, Zircon, Sillimanite,
and Ilmenite. The product range includes value added products like Zirflor and Microzir.
Ilmenite 200000t
Rutile 1145000t
Zircon 1175t
Sillmanite 10000t
Zirflour 6000t
Microzir 500t
ILMENITE
It is mainly used for the manufacture of titanium –di-oxide(white pigment) which is inturn used
in paints ,paper, rubber, textiles etc....
RUTILE
It is mainly used for coating of welding electrodes and also for the production of
Titanium di oxide and Titanium tera chloride used for production of metal /sponge
Rutile, when present in large enough quantities in beach sands, forms an important constituent
of heavy mineral sands ore deposits. Miners extract and separate the valuable minerals (typically
rutile, zircon, and ilmenite). The main uses for rutile are the manufacture of refractory ceramic, as
a pigment, and for the production of titanium metal.
Finely powdered rutile is a brilliant white pigment and is used in paints, plastics, paper, foods, and
other applications that call for a bright white color. Titanium dioxide pigment is the single greatest
use of titanium worldwide. Nanoscale particles of rutile are transparent to visible light but are highly
effective in the absorption of ultraviolet radiation. The UV absorption of nano-sized rutile particles
is blue-shifted compared to bulk rutile, so that higher energy UV light is absorbed by the nanoparticles. Hence,
they are used in sunscreens to protect against UV induced skin damage.
Small rutile needles present in gems are responsible for an optical phenomenon known as asterism.
Asterated gems are known as "star" gems. Starsapphires, star rubies, and other "star" gems are
highly sought after and often more valuable than their normal equivalents.
The titanium dioxide pigment is extracted directly from rutile, which contains 92 – 96 % TiO2. This is done
by calcining a mixture of rutile, coke and chlorine to form gaseous titanium tetrachloride (TiCl4).
The titanium tetrachloride is then condensed to a liquid and the impurities separated as solids. It is then
reheated to a gas and mixed with hot oxygen to form very fine crystalline rutile (raw white pigment).
Improved electric welding rods are produced by the use of coatings containing rutile. This is due to
the fact that it stabilises the electronic arc and reduces the viscosity of the slag formed during
welding.
Rutile, when present in large enough quantities in beach sands, forms an important constituent
of heavy mineral sands ore deposits. Miners extract and separate the valuable minerals typically
rutile, zircon, andilmenite. The main uses for rutile are the manufacture of refractory ceramic, as
a pigment, and for the production of titanium metal.
Finely powdered rutile is a brilliant white pigment and is used in paints, plastics, paper, foods,
and other applications that call for a bright white color. Titanium dioxide pigment is the single
greatest use of titanium worldwide. Nanoscale particles of rutile are transparent to visible light but
are highly effective in the absorption of ultraviolet radiation.
Small rutile needles present in gems are responsible for an optical phenomenon known
as asterism. Asterated gems are known as "star" gems. Star sapphires, star rubies, and other "star"
gems are highly sought after and often more valuable than their normal equivalents.
It is used for foundries , ceramics and refactries ,used as the raw materials for the
manufacture of zirconium oxide ,
Its compounds matal & alloys of zirconium which find applications in many chemical
electronic and neculer industries
Zirconium has no known biological role. Zirconium forms both inorganic and organometallic
compounds such as zirconium dioxide and zirconocene dichloride, respectively. There are five
naturally occurring isotopes, three of which are stable. Short-term exposure to zirconium powder
causes minor irritation, and inhalation of zirconium compounds can cause skin and lung granulomas.
Applications of zirconium
Ninety percent of all zirconium produced is used in nuclear reactors (in the form of zircaloys)
because of its low neutron-capture cross-section and resistance to corrosion.[5][6] Zirconium alloys are
used in space vehicle parts for their resistance to heat, an important quality given the extreme heat
associated with atmospheric reentry.[9] Zirconium is also a component in some abrasives, such as
grinding wheels and sandpaper.[10] Zirconium is used in weapons such as the BLU-97/B Combined
Effects Bomb for incendiary effect.
High temperature parts such as combustors, blades and vanes in modern jet engines and stationary
gas turbines are to an ever increasing extent being protected by thin ceramic layers which reduce the
metal temperatures below and keep them from undergoing (too) extensive deformation which could
possibly result in early failure. They are absolutely necessary for the most modern gas turbines
which are driven to ever higher firing temperatures to produce more electricity at less CO2. These
ceramic layers are usually composed by a mixture of zirconium and yttrium oxide.[1
- zircaloy 2 (alloy with some Sn, Cr, Fe, O): nuclear fuel rods
- zircaloy 4: calandria
* to made pumps, pipes and valves for special processes in chemical industry
* getter,
* flash bulbs filaments
MONAZITE
Extraction of thorium nitrate and rare earth compounds used in various chemical and
electronic industries
high density monazite minerals will concentrate in alluvial sands when released by the weathering
of pegmatites. These so-called placer deposits are often beach or fossil beach sands and contain other
heavy minerals of commercial interest such as zircon and ilmenite. Monazite can be isolated as a
nearly pure concentrate by the use of gravity, magnetic and electrostatic separation.
Monazite sand deposits are inevitably of the monazite-(Ce) composition. Typically the lanthanides
in such monazites contain about 45 - 48 % cerium, about 24% lanthanum, about 17% neodymium,
about 5% praseodymium, and minor quantities of samarium, gadolinium, and yttrium.
Uses of monazite
While the main products of mineral sands mining are titanium oxide and zircon, monazite is
also a significant component. In some deposits xenotime also occurs. In the past these were
often returned with the tailings, but today they are often processed to rare earth oxides
containing thorium which are used in:
Chemistry – catalysts
Ceramics - pigment.
Products from monazite are also used in metallurgy, flints, ferro-alloys, glass polishing,
jewellery, fuel cells, refractories, lamp mantles (thorium) and welding electrodes.
Yttrium from xenotime has been used in the most effective superconductors.
GARNET
It is used in the manufacture of abrasives ,grainding wheels , for polishing glass, T.V
tubes, water filtration, etc…
Red garnets were the most commonly used gemstones in the Late Antique Roman world, and
the Migration Period art of the "barbarian" peoples who took over the territory of the Western
Empire. They were especially used inlaid in gold cells in the cloisonné technique, a style often just
called garnet cloisonné, found from Anglo-Saxon England, as at Sutton Hoo, to the Black Sea.
Pure crystals of garnet are still used as gemstones. The gemstone varieties occur in shades of
green, red, yellow and orange. In the USA it is known as thebirthstone for January. It is the state
mineral of Connecticut, NewYork's gemstone, and star garnet (garnet with rutile asterisms) is the
state gemstone of Idaho
Industrial uses
Garnet sand is a good abrasive, and a common replacement for silica sand in sand blasting.
Alluvial garnet grains which are rounder are more suitable for such blasting treatments. Mixed with
very high pressure water, garnet is used to cut steel and other materials in water jets. For water jet
cutting, garnet extracted from hard rock is suitable since it is more angular in form, therefore more
efficient in cutting.
There are different kinds of abrasive garnets which can be divided based on their origin. The largest
source of abrasive garnet today is garnet rich beach sand which is quite abundant on Indian and
Australian coasts and the main producers today are seen to be Australia and India.
This material is particularly popular due to its consistent supplies, huge quantities and clean
material. The common problems with this material are the presence of ilmenite and chloride
compounds. Since the material is being naturally crushed and ground on the beaches for past
centuries, the material is normally available in fine sizes only. Most of the garnet at the Tuticorin
beach is 80 mesh, and ranges from 56 mesh to 100 mesh size.
River garnet is particularly abundant in Australia. The river sand garnet occurs as a placer deposit.
Rock garnet is perhaps the garnet type used for the longest period of time. This type of garnet is
produced in America, China and western India. These crystals are crushed in mills and then purified
by wind blowing, magnetic separation, sieving and, if required, washing. Being freshly crushed, this
garnet has the sharpest edges and therefore performs far better than other kinds of garnet. Both the
river and the beach garnet suffer from the tumbling effect of hundreds of thousands of years which
rounds off the edges.
Garnet has been mined in western Rajasthan for the past 200 years, but mainly for the gemstone
grade stones. Abrasive garnet was mainly mined as a secondary product while mining for gem
garnets and was used as lapping and polishing media for the glass industries. The host rock of the
garnet here is garnetiferous mica schist and the total percentage of garnet is not more than 7% to
10%,which makes the material extremely costly and non economical to extract for non-gemstone
applications.
SILLIMANITE
It is mainly used for the manufacture of high temperature referactories insulators and
ceramic industry
Uses of Sillimanite:
• Brazil
• India
• Myanmar
• New England
• North Carolina
• Connecticut
• France
Board of management
IREL shares are wholly owned by Govt; of India. The board of management consists of
seven directors under the chairman ship of Mr. Siva Subramanian appointed by Govt; of India.
There are three fulltime directors and four part time directors who are nominated by DAE and state
Governments in addition, nominee from the president of India also participate in Board meetings.
Approximately 2750 people are employed by IREL in all units and they constitute one of its greatest
resource.
VISION
o To be a leading supplier of beach sand minerals from Asia by supplying 10% of the
world demand for beach sand minerals over the next 7-10 years. It would be achieved by
maximum utilization of existing capacities, new capacity addition, and capturing major
portion of the incremental growth in the global TiO2 feedstock demand and by developing
competitive value added Rutile, zircon, Sillimanite and garnet products that make handsome
contribution to revenue and profits.
o To become the preferred rare earths products supplier (producer and / or marketer) for
domestic customers to ensure long-term sustenance and profitability of rare earths business
and to achieve adequate efficiency in monazite processing as long as it is necessary /
worthwhile.
MISSION
IREL has fairly good record in its performance during the past decade. From 1997-1998 onwards
all out team effort was taken to achieve name plate capacity for the mining and mineral separation
plants in all the three locations, Total sales turnover, share of export and profit after tax started
improved by leaps and bounds and the company recorded increasing profit since then. In addition to
production and financial performance, IREL has excelled in the areas of marketing, safety and
human resource management. In recognition of the company’s efforts, SCOPE awarded prestigious
Silver Trophy of ‘SCOPE’ award for excellence and outstanding contribution to the Public Sector
Management – Special turnaround Category for the year 1999-2000. During the year 2006-07, IREL
posted all time high sales turn over exceeding 3600 million with export component over Rs. 1000
million & all time high Profit Before tax of Rs. 1000 million.
Future Outlook
Company is implementing expansion of all the three Mineral Separation Plants. With the
expansion activities in progress, the Company is poised to reach greater heights in the years to come.
The phase-I expansion at Chavara is nearing completion (in full) and the expansion at MK is
expected to take off soon. Expansion of capacity at OSCOM is also progressing.
In addition to expansion of Mineral Separation Plants, the Company is planning to restart the
manufacture of Rare Earths products in big way with implementation of Monazite Processing Plant
(MOPP) at OSCOM which is likely to commence commercial operation by July, 2009.
The successful completion of expansion activities will bring forth a new era of higher capacity
and profits and the Company, it is hoped, will attain the pinnacle of glory. The Company will
continue to be one among the most successful
DEPARTMENTS IN IRE
Marketing occupies an important position in the organization of any business unit. Marketing
function necessary to satisfy the customer such as financing, storage risk bearing and after sales
services etc. Marketing is a vital connecting link between the producer and the customer.
The organization enjoyed monopoly till 1998, only public sectors are present in the market.
After that private sectors are come to the market. But in Kerala they enjoy monopoly. Direct selling
is the main system of the organization. The customers primarily pay the full amount as DD in
advance and then the company gives the product.
Customer visit
Every quarter five customer are selected for a visit to know the prevailing market condition
Customer feedback
Every year customer questionnaires are circulated to the customers and circulated to the
customers and suitable strategy for future marketing. Competitors Even though the company enjoys
a near monopoly till recently. But now it has some competitors in Domestic and foreign markets.
Companies like Vaizag (A.P), VV Minerals, Tutucorin (T.N) in the domestic market and like RGC
Ltd, Western sands(both in Australia) Titania and Tinfos (Norway), Richard’s Bay Minerals Ltd
(South Africa)
Major customers
KMML
CMRL
Steel companies
Ceramic companies
Reoinda
Kerr-McGee Corporation
Dugon
The last three companies are regular customers who producing titanium di oxide (TiO2).
Market segmentation
The company finds its major market in foreign countries. The IREL exports mineral like Ilmenite,
Zircon &Sillimanite to many countries mainly U.S.A, Canada, UK, France, West Germany, Japan
etc. The head office in Mumbai makes the export contract . Exporting is done through shipment. The
company makes shipping bills and packs the items in cargo for distribution products in the domestic
market. The company uses road transportation system.
Market share
The company has 90% market share in domestic market and 2% in foreign market. Till 1998, the
company enjoyed monopoly in rare earth products. But now some competitors are present in other
states. In Kerala still the company enjoys monopoly.
Fig 3:1: chart showing the hierarchy structure of marketing and sales `
department
`
2.MINING DEPARTMENT
In IRE the raw material for production process are collected through mining process. The production
process starts with the collection of beach sand from various places. For collecting this beach sand
IRE uses the following two Methods: Sea Washing and dredging.
Sea washing
Raw sand is collected from sites where deposits are occurred due to natural beach washing
.Presently IRE owns two sites one at Vellanathuruthu / Ponmana and one at 132 mining area. There
is a heavy mineral deposit over a length of 22.5 km. They are found over or coastal belt having an
average width of 800 meters. The sea waves deposits the mineral sand on the beach sand on the
beach line and it is collected. Then it is send to the mineral separation plant
Dredging
Presently IRE, Chavara have two floating dredges (material recovery plant MRP) at Karithura and
Puthenthura. These plants are constructed with the help of Neumann Equipments private limited
Australia. Each plant was cost about Rs 10 crore as establishment cost.
The plant DWUP used for the mechanized recovery of minerals from the beach sand. The DWUP
consists of a floating dredging plant operated hydraulically and electrically which could be moved
from one place to another based on the requirement. The plant is floating in an area having a water
depth of 6 meters. The sand along with water in the form of slurry (a mixture of sand and water) is
pumped to the heavy up gradation equipments. The equipments consist of a series of transfer bin
rotating screens called trommel, spirals separators, hydrocyclones, pumps etc all being electrically
operated. The DWUP can dredge about 40 to 60 tones per hour. The raw sand having an average at
40% heavy minerals is fed to the floating plant and updates it to 85 to 90% mineral content. The
waste sand (quartz) from DWUP is used for backfill the dredged area.
Department structure as follows
The main function of this department is to separate the minerals from raw sand using the physical
resources so as to provide desired utility to customer while meeting other organizations objectives,
efficiency and adaptability. IRE takes the nature boundary in the form of beach sand and separates it
to extract rare earths and minerals. These materials go for a wide variety of products like ceramics
paints, flints of lighters, detergent etc. IRE produces the major beach sand heavy minerals like
Ilmenite, Rutile, Zircon, Sillimanite, brown Ilmenite and value added products like Zirflor and
Microzir.
Prepare detailed raw material plans and ensure the incoming Quality standard and their usage
Constantly evaluate alternative sources for raw materials, direct trial of the same and help
management to firm up such source
Prepare detailed production plan in consistent with Company’s production objectives; direct
and control the implementation of the same
Carry out investigation and guide management on long term measure towards achievement
of goals of expansion in the area of production and quality
Evolve standard operating procedures for different process and equipment document standard
operating data and periodical update the same
Department structure as follows
1. Prepare detailed production plans consistent with company’s production objectives and direct
control the same.
2. Constantly evaluate alternate source of raw materials, direct trials of the same and help
management to firm up such sources.
3. Carryout investigation and guide management on long term measures towards achievements
of the goals of expansion in the across of production and quality
4. co-ordinate with customer service department and initiate actions in different departments to
take corrective actions from the points of the quality assurance to customers
5. Ensure implementation of safety measures in the operations, equipments and process to avoid
dangers to the structures and man and equipment.
6. Evolve standard operating for different process and equipments, documents, standard
operating data and periodically update the same
PRINCIPLES OF SEPARATION
7. Conductivity separation:
The heavies from HUP plant is dried using fluidized Bed Dries (FBD). The dried mineral
concentrate is subjected to electrostatic separation using high tension electrostatic separation
and two fraction namely conductivity and non conductivity minerals are separated out.
8. Magnetic separation:
There are two types of magnetic separators are used. They are induced roll magnetic
separation and exolons.
Ilmenite being highly magnetic and is subjected to low intensity magnetic separator
It is mainly used to separate out heavy and light fraction of minerals. There are three types of
gravity separation
In this light fractions are thrown out aside and the heavies with high density are collected
down
It is a moving table of water that separators out the light and heavy fractions.
This is a column type of gravity separator. The input is fed from the top and water with high
pressure and force is pumped from the other end thus the low density fractions are separated
aside and the heavier are collected down.
This uses some chemicals for this purpose such as sodium silicate and oleic acid, which is
used for the separation of Sillimanite.
Flow diagram of the process of separation of sillimanite
P
HU
FBD
Rotary dryer
HIRMS
IRMS
Non Mag
Mag
Mag Non Mag
Gravity
Monazite separation
Ilmenite HIRMS
concentrate Tails
Mag
Non Mag Zircon
Flotation
Leucoxene Rutile
Float
Sillimanite Tails
4. FINANCE DEPARTMENT
Senior
Manager
⌡↓↓↓||
Senior
Manager
5.HUMAN RESOURCE DEPARTEMENT
IREL Chavara takes place its highly motivated and trained human resource that has maximized its
performance and there by its highest business growth and profit. Morale of employees remains
facilitating smooth working of the company. Skill requirement related to different disciplines are
identified and training programs and workshops are conducted to improve overall efficiency of the
human resource.
1. Administration
2. Industrial relation
3. Training and employees welfare
4. Time management
Manpower planning
Recruitment policy
Performance appraisal
Salary and wage administration
Industrial discipline
Maintaining service book and personal files
Maintaining reservation register.
Manpower planning
Man power planning is important for any type of organization. It is the process which
determines how an organization should move from its current man power position to its desired
manpower position. For this purpose, the HR department at IRE collect feed back from all
department in order to identify their manpower requirements of various department And then the
HR department crosscheck whether there is any overstaffing in any of the departments If these
department have excess of staff, they are transferred to those departments where there is a
shortage.
The company considers the number of employee presently working as significantly high.
There is a problem that sometime the VRS can lead to scarcity to workers for particular job. At
IREL using the process of multitasking the employees are made fit to work in other function
also. By the VRS scheme more than 100 employees have been sent out with in span of three year
Man power of the company: There are 569 employs in the company. Total officers are 92 and
clerical staff 477. The numbers of contract worker are 1240.
Recruitment policy:
Recruitment in Chavara plant is done through local employment exchange for find out
prospective workers. The office staffs and managers are recruited by the head office through
tests and interviews.
Recruitment criteria:
For the recruitment of candidates, the candidates should be above18 years of age. The
following steps are taken before the recruitment of employees. They are Govt. guide line, the
recruitment only through employment exchange, notification in internet, and advertisement in
newspaper should be needed. Application will be scrutinized with the help of a selection
committee and eligible candidates are called for an interview.
After training for a period of one year or more they will be put as permanent employees.
Performance appraisal:
Appraisal is the evaluation of work quality or merit. In the case of IRE performance appraisal is
a systematic evaluation of employees by superiors or others familiar with their performance.
2. Grading method
Under this method certain categories of work such as excellent, very good, average, poor,
very poor are established and defined actual performance of each employee then compared with
the grade definitions and ranked.
To evaluating the performance of workers are present. Last grade employees that are 8th& 9th
grade, their work performance have been observed by supervisors. But in the case of executives
MBO’s are observed their performance and efficiency.
In IRE performance appraisal is done on a yearly basis to assess the performance of the
employees. The appraisal is done by three persons.
1. Reporting officer
2. Reviewing officer
3. Evaluating officer
Firstly, the employees themselves do a self appraisal and this is given to the reporting officer and the
person who has done self appraisal together identifies the key result areas and weight age is allotted
to each one of them. This is usually done at the beginning of the year.
The reporting officer checks whether the key result areas set where met by the appraisal or if there
any deviation from it. And this is to be sent to reviewing officer and then evaluating officer. Various
other factors such as the appraisal’s managerial skills like job knowledge, interpersonal skills are
also included and guided, and that is allotted in the appraisal and there promotion is based solely
seniority.
Promotion
Industrial discipline:
Disciplinary actions are taken in the HR department. Procedure for disciplinary actions is on
receiving a complaint about a particular employee, explanation is asked. Employee will give an
explanation before 15 days. If the explanation is not satisfied he will be given a charge sheet and will
also conduct a domestic enquiry. For this purpose an enquiry officer is placed. After conducting the
enquiry the report should be sent to the disciplinary committee, and if necessary, certain punishment
may also give.
Grievances handling
There is a grievance cell in this company. Any employee can bring their grievance and complaints
here. These grievances are discussed with top authorities and effective measures are taken.
Transfer policies
Transfer is the movement of an employee from one job to another without involving any substantial
change in his duties, responsibilities. The company is following 4 methods
a) Production transfer:
When a particular department or job is faced with the pressure of work, its strength may supplement
through from other departments. Such transfers are generally made where are department is overstaff
and other is short of manpower.
b) Replacement transfer:
A replacement transfer is the transfer of a senior employee to replace with a junior employee or new
one
c) Shift transfer:
When units in shifts, employees are transferred from one shift t o another on similar job.
d) Department transfer:
Transfer from one department to another department with in the plant or with in the organization.
Industrial Relation
Most of the disputes will be settled by the company and unions. If it is not cleared, they can
approach to the government.
“Training is the act of increasing the knowledge and skill of an employee for during a particular
job”. IRE adopted various techniques of training for increasing the mass productivity. The training
program is restructured regularly in IRE. The objective of training and development in IRE
1. Identify the training needs. The company identifies the training needs through 3 ways
a. Organization analysis
b. Task analysis
c. Man analysis
2. Executives themselves will discuss the training needs.
3. Charting out the training plan for a period
4. Based on feed back individual training is given.
Training methods
IRE has mainly four types of training methods. In house training, External training, Vocational
training and First aid training. The training method can be grouped on the basis of level of personnel
in the organization.
In house training: Other wise known as on the job training. In this method expert from outside,
come to the organization and give training.
External training: Also known as off the job training. The training is given out side of the
organization.
Vocational training; At least 0% of the employees should be trained every year.
Employees’ welfare:
Two types of employees’ welfare are present in IREL. They are statutory welfare and non statutory
welfare. Grativity, P.F, Pension, canteen, medical allowances are including in the statutory welfare.
Festival allowance, LTC, Recreation, Tour facilities are includes in the non statutory welfare. Also
the IREL gives some kind of allowances. They are
Shift allowance: for employees working in shifts expect general shifts will get an allowance as
follows
Since the plant handles sand for its production, it creates a dust in the atmosphere considering this
hard ship in work every employee of Chavara plant gets 135/- per month as hard ship allowance
Uniform allowance
Every employee is provided with two pairs of uniform in every year. Rs100/-per month as washing
allowance is granted for all employees.
Transportation allowance
Every Employees (except officers) get Rs.700/- per month as conveyance allowance. Officers will
get minimum Rs.1000/- per month as car allowances
Canteen
A round the clock canteen is provided for the employees. Company will charge Rs. 4/ per day from
each employee. The canteen is under the control of the company.
Attendance bonus
To increase attendance in the company gives annual bonus of 12 days wages for every employee
who have minimum 268 day presence
Production incentives
Every employee gets an amount of Rs. 525/-per year as production incentives from the profit.
Surrender leave-Each employee can surrender max 90 days/year or 75% of earned leave.
Other benefits
750ml milk/day
4 pears soap/month
One turkey or towel/year
Shoes (1pair)/year
One umbrella/ year
One raincoat/2 year
House loans up to 3.5 lakhs
Medical facilities etc
Educational allowance to workers children
Festival allowance.
6.Time office
There is a full fledged time office headed by Dy. administrative officer. It follows a punch card
system. Different allowances for employees are given and it is mainly depend on attendance. It is
providing according to the report from the time office. The Time office is working under the HRM
department. The main function of this department is to maintain attendance records, leave and
service records etc. There is an e-form called Muster which relates with the attendance. The various
allowances to the employees like shift allowance, overtime allowance, attendance bonus all these
records are maintained by the time office department. Also yearly attendance bonus is given to the
employees.
The main function of department is procurement of materials at competitive price. All items
including real materials other than raw sand are purchased by this department. Inn IRE purchase
department has a prime importance
‘
Formalities for placing an order
1. Organization of an indent
2. Tender enquiry
3. Opening the tender at the due date
4. make comparative statement
5. send it for technical evaluation
6. selection of the best one
7. if an negotiation needed it is done with party
8. Obtaining approval
9. place the order
10.Followup
Formalities of purchase
The stores department act as a store and supply chain, keeping inventory of the product produced on
one hand and supplying requisite raw materials to the manifold department on the other hand.
All the items in IRE are properly stored by this function area, including finished product inventory.
It stores furnace oil, machine parts, office equipments and stationary etc.
Capital items
Consumable items
Capital items,
which give return for long term. Revenue items or a consumable item means that which are
consumable only for a short period.
Procurement of items of capital nature is to be made only after the approval by the competent
authority duly verified by internal auditors with prior conclusion in the capital budget
Stores action is responsible for arranging procurement of all items or purchase requisitions
shall from the basis for arranging procurement or other departments, complete in all respects and
duly approved by the controlling authority. Stores are purchased indigenously and from foreign
suppliers through the adoption of competitive tendering. Tendering system is adopted it secure the
most competitive tendering the most competitive rates and eliminate chance of favour.
The worth of production in the plant is currently between 6-7 crores. Once in every three
months inventory statistics is prepared and send to the head office in Mumbai. Stores follow Bin
card and Cardex system. This department has three major functions as follows
Receipt: The consignment items are properly verified with the receipts and requested the particular
departments to made inspection on each items
Storage: The received items are stored in proper locations and preserve them until the issue. Each
item has its own Bin card .The quantity received, material issued, total remaining are noted in the
Bin cards.
Issue: The issue made in first in first out method. After the receipt of the material internal note from
the department, the issues are made and same is recorded in the bin card
Inventory Control
Under the stores department the inventory control function is done. If excess stock is obtained, it is
properly informed to the marketing department to promote sales and if any shortage obtained it is
properly informed to production department to increase the production. Usually ABC inventory
control method is adopted in IRE Chavara for control of inventories. The principal types of
inventories are
Despatch section
Despatch section controls the transportation of the finished products to the out side of the company.
When a customer made a complete settlement of money for the purchasing of a particular product
from the company the marketing department placed a delivery order to the despatch department. The
despatch department then prepares an invoice and t gave a copy to the customer. This d4eepartment
also prepares gate pass and state Govt; declaration sheet.
Secondly they are responsible for maintaining consistent quality of products to the satisfaction of the
customers through quality management system implementation. They also aim at further
improvement of product, technology or process. The quality control department is also responsible
for maintaining consistency in quality of raw material during the processing, intermediate, and final
product stages. They al make use of chemical and mineralogical testing methods in each stage.
In addition to these functions this department also conducts research and development activities to
support flow sheet development works and for solutions to process related problems.
IREL Chavara got ISO 9001:2000 certifications for quality management system established for
mining, manufacturing and marketing of mineral products for the certification body of TUV
management service: Munich
10.SAFETY AND ENVIRONMENT DEPARTMENT
This department looks after the safety issues of the manpower. This team is lead by Manager (safety
and environment). He is assisted by Dy. Manager (Safety and environment) .There are staff to assist
these officers
This department provides personnel protecting equipments like safety shoes, gun boots, helmet,
goggles, mask, air muffs etc to workers from time to time. This department conducts mines safety
week during August- September month in every year. There will be competition in safety slogan,
safety song, safety speech etc. At induction level every employee gets an intense training in safety
issues. Under safety department there is a committee “accident inspection committee”, to face
unexpected accidents IRE has a safety and environmental protection committee consists of unit head
as chairman and all department /section heads as members, employees union are also participating in
the committee. This committee is meeting in every month to evaluate safety measures and forms
new policies if necessary.
Indian Rare Earth Limited, Chavara employs a state of art safety program to prevent accidents in the
plant. The safety programs are responsible for
1) Displaying safety advertisement boards which help to create safety awareness among the workers
2) The safety committee is responsible for safety. An inspection conducted on a regular basis say
daily, weekly and monthly. In addition to this a yearly inspection is conducted by internal and
external experts.
3) This department is responsible for providing safety training and retraining to regular employees.
They also provide instruction training for fresher and external expert training to all engineers
4) Safety committee also conducts monthly performance appraisal programs of their activities.
5) This department also has a special wing for accident investigation and reporting and accident
prevention program
11. MAINTENANCE AND PROJECT DEPARTMENT
MAINTENANCE DEPARTMENT
This department stands for the maintenance of machineries in plants. This department is
taking place daily inspection of the equipments; thereby they are able to understand the efficiency of
the machine by looking into the performance of the machines. Sometimes the maintenance will go
for 7days to 15 days.
TYPES OF MAINTENANCE:-
The maintenance department gives different types of maintenance to the machineries like;
1) Electrical maintenance.
2) Mechanical maintenance.
3) Machine maintenance.
4) Preventive maintenance.
5) Break down maintenance.
6) Routine maintenance.
7) Block maintenance.
12.SECURITY DEPARTMENT
Security of company assets and premises laid on the staff of security department It is lead by
security manager and he is assisted by 6 head security officers and 26 security guard
The security department gives security of company and also maintains the entry of employees and
visitors. According to ISO procedure they maintain the discipline of employees like uniform visitors
pass etc
Major threats
1) Sabotage
2) Theft .
Sabotage
If sabotage happens there will be a control room and it accessible at every time. In case of
emergency the system will automatically shut down and emergency alarm is there. And all the
employees are required to assemble in assembly points.
Theft
The boundary walls of the company were not clear. And also the neighboring people are jobless
people because they have a tendency to theft.
Department structure as follows
There are 32 securities in total. The security department gives security in mining area also.7
securities are in Puthenthura, 7 securities in Vellanathuruthu and 16 in plants.
13.MEDICAL DEPARTMENT
IREL has a full fledged dispensary in the company. It comprises of two doctors, three pharmacist
and three nurses. Structure of the department as follows
Every family member of the employee is eligible for free attendance and treatment in the dispensary.
Cases beyond the scope the dispensary will refer to major hospitals in kollam and karunagapally
(referred hospitals). The whole payment is such cases are done by the company itself. Dispensary is
working around the clock.
14.CIVIL DEPARTMENT
Civil department consists of Dy. Manager (civil), two Dy. Officer and the work force. They
frequently monitor company structures and maintain them properly. In case of new projects, the
basic infrastructure has to be erected by this department.
Supervisors
FINDINGS AND ANALYSIS
SWOT ANALYSIS
Strength
Weakness
1. Situated in Kerala where labour charges are high and also political influence are regarding
labour issues.
2. Only a small part of total plant capacity is utilized
3. Due to monopoly of market sales promotional activities are very less
4. Poor distribution system
5. Company is a central government undertaking and as a result all major and minor decisions
have to be taken undergoing a lot of formalities and take more time.
Threats
IREL is one among well performing companies in Manavalakurichi engaged in the process
of processing rare earths products available among the coastal belts. IRE is reaching new boundaries
with its performance. IRE was incorporated on 18th August 1950 as a Pvt. ltd company under the
Indian company’s act of 1913 jointly owned by the govt: of India and the govt: of Travancore
Cochin. In 1951, IREL became a public sector undertaking and two mineral separation plants, one at
Manavalakurichi in Tamil Nadu (1967) and the other at Chavara in Kerala state (1970) were set up.
BOOKS
• IRE Brochure.
• Departmental procedure manual (DPM) of IREL.
• IRE Annual report.
• U.S. GEOLOGICAL SURVEY MINERALS YEARBOOK—2001
• Kothari C. R. Research Methodology Methods and Techniques 2ND Edition New Age
International Publishers 2008
• Chhabra T. N Human Resource Management – Concept and issues Fifth edition Dhanpant
Rai & Co(P) Ltd. 2008
• Kotler Philip Marketing Management- A South Asian Perspective 12th Edition Pearson
Education 2007
• Chase B Richard, Aquilano J Nicholas, Jacobs Robert F, Agarwal K Nithin Operation
Management For Competitive Advantage 11th Edition The McGraw- Hill Publishing
Company Ltd. 2006
WEBSITES
• www.irel.gov.in
• www.wikipedia.org