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(formerly Hindustan Insecticides Limited)


Submitted to Mahatma Gandhi University in partial fulfilment of the requirements for the
award of the degree of


Submitted By
Reg. No. 100837
Under the guidance of


(Faculty guide)

Accredited by NAAC with ‘A’ Grade





This is to certify that the project report entitled “AN ORGANISATIONAL STUDY AT
HIL (INDIA) LIMITED, UDYOGAMANDAL, KERALA “is a bonafide report of the
project work undertaken by ASWANI S KUMAR, second semester MBA student Of our
college during a period of 4 weeks commencing from 1st August to 28th August, 2018 at


Faculty Guide Head of Dept. of Management Studies

Fr.Dr. CHERIAN J KOTTAYIL Signature of University Examiner


I hereby declare that this project report entitled “AN

UDYOGAMANDAL” has been prepared by me during the year 2018, under
the guidance of Mrs. JERLY AKKU CHERIAN, Department of
Management Studies, MACFAST, Tiruvalla.

I also declare that this project report has not been submitted to any other
University or Institute for the award of any degree or diploma.



As a management student the organizational study carried out with HIL (INDIA) LIMITED
was a great experience to me. The project give me a golden opportunity to understand the
various departments and also about their functions and operations.

I take this opportunity to express my sincere thanks and gratefulness to all who directed me
throughout the materialization of report work at the full stretch.

First I thank lord, for his blessings in bringing out my study report.

I feel great pleasure to thank our Head of the department Dr. SUDEEP B
CHERIAN (faculty guide) for the encouragement rendered me in doing the study.

I am indebted to many who helped me to complete this project. I express my sincere gratitude
VIJAYALEKSHMI (TRAINER) who gave her valuable support and guidance throughout the
project. I also take this opportunity to express my thanks to all the staffs of the organization
that had spend their valuable time with me.

I also thank the entire faculty of MACFAST College, Thiruvalla for giving me various
advices at all level necessary times.

Last but not least, I express my heartfelt thanks to all my friends and well wishers for all the
moral support that they given to me.

This is meant to understand the functioning of an organization as a whole. The term

organization has been defined by many experts of management in different ways, and a while
defining the term theory has put emphasis on its different aspects. This has created a lot of
confusion. Generally, organization refers to a group or an association or an institution of
individuals work together to achieve a common objective. It may be defined as a planned unit
formed by individuals for pursuing specific goals.

In a different way, Louis A Allen (1958) has defined an organization as a mechanism or

structure that enables living thing to work effectively together. This definition clearly
indicates that an organization has its origin in human civilization and has great relevance for
society as a whole.

As a production unit of insecticides, pesticides and acaroid, Hindustan Insecticides Ltd has
great significance in Indian economy. Ours is an agrarian economy, and pest control is an
essential, inevitable activity which has significant role in agriculture.

It is really beneficial to conduct organizational study in such an organization. Details about

the industry, products and various departments with SWOT analysis is incorporated in this


The scope of the study aimed to gain direct experience of the overall functioning of the
organization and an opportunity to interact with the authorities in the organization and the
study intended to get industrial experience.

The study provides a chance to see the practical constraints faced by the managers while
putting theory into practice and helped to know about real life situations faced by the
supervision in each stage of the work and helped to know about the day by day functioning of
the departments, internal relationships in achieving excellence.
The study is helpful to asses the quality and performance of the company. It will help to
conduct a detail study on the structure of the functional areas of the organization. It also helps
to identify the strength and weakness of the organization should improve. The study is about
organizational performance, i.e. this study will give a clear picture about the organization.


The study is conducted for determining the following importance:

 To develop the practical knowledge about the working of an organization.

 To know the current office structure.

 To understand the functions of various departments.


Primary objective;

To study the overall functions of the company and to understand the duties and
responsibilities performed by employee at different levels in the organization.

Secondary objective;

 To gain and acquire knowledge about the origin and the history of the organization.

 To get an in depth view of the various management functions of the different

 To learn about the practical aspects of these managerial functions in the department.

 To interact with the manager at different levels and to know their responsibilities and
routine activities.

 To observe the workplace and to interact with them.

 To conduct a SWOT analysis.



A researcher can collect his required information from the two sources namely

primary and secondary. Data collection is an integral part of a research design. It is

the basic factor which give information about the problem or subject understudy,

it is a term used to describe a process of preparing and collecting data


The researcher himself collects primary data for the first time and thus they are

original in nature

 Direct observation of various activities and functions

 Interviewing the department heads, employees and workers

 Questionnaire distribution to employees


Secondary data are those collected by some other person for his purpose and

published and are available for the present study.


Agriculture is the backbone of Indian economy. Ensuring food security for more than 1
billion Indian population with diminishing cultivable land resources is a herculean task, this
necessitates use of high yielding variety of seeds, balance of fertilizers, judicious use of
quality pesticides along with educating farmers about the sues of modern farming techniques.
It is estimated that India approximately loses 18%of the crop yield valued at rs. 900 billion
due to pest attack each year. The use of pesticides help to reduce the crop losses, provide
economic benefits to farmers, reduce soil erosion and help in ensuring food safety and
security for the nation.

The Indian pesticide industry with 85,000 MT of production during Financial Year 2007 is
ranked second in Asia (behind china) and twelfth globally. In value terms, the size of the
Indian pesticide industry was estimated at rs. 74 billion for 2007, including exports of rs. 29
billion. Globally due to consolidation in the MNCs control almost 78% of the market. In
India, the industry is very fragmented with about 30-40 large manufacturers and above 400

The per hectare consumption of pesticide is low in India at 381 grams when compared to the
world average of 500 grams. Low consumption can be attributes to fragmented land holdings,
low farmers about the benefits of usages of pesticides etc. India, being a tropical country, the
consumption pattern is also more skewed towards insecticides which accounted for 64% of
the total pesticides consumption in FY07. India due to its inherent strength of low cost
manufacturing ad qualified low cost manpower is ante exporter of pesticides to countries
such as USA and European and African countries, exports formed 39% of total industry
turnover in FY 07 and have grown at a compounded annual growth rate (CAGR) of 18%
from FY03 to FY07.

Prior to 2005, i.e, in the prices patent regime, Indian companies focused on applied research
and concentrated on marketing generic and off patented products. Due to this, the R&D
expense by Indian companies focused on high end speciality products and dominated the
market for patented new molecules. However, with the onset of the product patent regime I
India since 2005, the Indian companies will need to increase R&D expense to meet
competition from MNCs. Alternatively Indian companies can be competitive in the area of
Contract Research and Manufacturing Services (CRAMS)

With the advent of the Integrated Pest Management ( IPM) techniques, the use of bio
pesticides and genetically modified seeds has increased. Globally, GM seeds are used mainly
for commercial crops like cotton, maize, soya bean and canola. In India, cotton is widely used
and the acreage stood at 6.20mn ha for 2007, a growth of 63% previous year. Use of GM
seeds may diminish the use of insecticides but the sue of herbicides may improve.

CARE Research feels that the demand for pesticides can be augmented only through
sustainable growth in agriculture . with the government‟s focus on development of the
agriculture sector, the industry may see a better future.

India is the sixth largest producer of chemicals in the world by output. In 2014, production
totalled 19.3 million tons. The industry is valued at $144 billion and is projected to increase
to $350 billion by 2021. The country exports about half of its chemical products to major
foreign markets such as the U.S., Canada, Western Europe, Japan, and China.
The industry covers over 70,000 commercial products in the following categories:
 Inorganic and organic chemicals
 Drugs and pharmaceuticals
 Plastics and petrochemicals
 Dyes and pigments
 Fine and specialty chemicals
 Pesticides, agrochemicals, and fertilizers
Selected major foreign investors and their chemicals products in India include:
 Dow Chemicals (Michigan) – products and solutions for agriculture, construction,
electronic materials, and infrastructure industries
 DuPont (Delaware) – solutions for food and energy sustainability, serves industries
including automotive, health care, and mining
 Croda International (U.K.) – specialty chemicals for textiles, polymers, agrochemicals,
and personal, health, and home care
 Henkel (Germany) – laundry/home care, beauty care, and adhesive technologies
 Mitsubishi Chemical Holdings Corporation (Japan) – Purified Terephthalic Acid, sold
in India for the past 20 years
Some Indian chemicals manufacturers are:
 Excel Crop Care – agrochemical manufacturer, based in Mumbai
 Bharat Group – agrochemical manufacturer comprised of smaller companies Bharat
Rasayan, Insecticides, and Agro tech
 Supreme Industries – India‟s leading plastic processor, based in Mumbai
 Haldia Petrochemicals – one of the largest petrochemical companies in India
 Dr. Reddy’s Laboratories – pharmaceutical company headquartered in Hyderabad
India‟s chemicals industry is growing because of the country‟s growth in agriculture,
construction, clothing, and automotive sectors and the strong demand for exports.
Government policies such as allowance of 100% foreign direct investment and support for
research and development also contribute to the sector.
The Indian chemical industry is among the established traditional sectors of the country that
play an integral role in the country‟s economic development. This sector forms a part of the
basic goods industry and is a critical input for industrial and agricultural development.

The Indian chemical industry is one of the oldest industries in India and has made immense
contribution to the industrial and agricultural development of India. It encompasses both
large and small-scale units. The fiscal incentives granted to the small-scale units in the mid-
1980s provided the thrust to the growth of MSMEs in the sector. The chemical industry
serves the needs of sectors such as textiles, leather, plastics, paper, printing inks and food
stuffs, among others.

The chemical industry is among the most diversified industrial sectors and includes basic
chemicals and its products, petrochemicals, fertilisers, paints, gases, pharmaceuticals, dyes,
etc. The sector covers over 70,000 commercial products, and provides the feedstock to many
downstream industries such as finished drugs, dyestuffs, paper, synthetic rubber, plastics,
polyester, paints, pesticides, fertilisers product innovation, brand building and environmental
friendliness. Besides, customer focus is gaining significance in the industry.

High potential for growth in chemical industry

The industry comprises both small-scale and large units (including MNCs) and produces
thousands of products and by-products ranging from plastics and petrochemicals to cosmetics
and toiletries. The industry consumes a significant share (around one-third) of its own
production. The industry has a 14% weightage in the overall Index of Industrial Production
(IIP) which gives an indication of its importance in the country‟s industrial growth. A robust
chemical industry ushers in many economic and strategic benefits for the nation. Indian
Chemical industry to touch USD 190 billion by end of 2016.

The Indian chemical sector accounts for 13-14% of total exports and 8-9% of total imports of
India. In terms of volume of production, it is the twelfth-largest in the world and the third-
largest in Asia. Currently, the per capita consumption of products of the Indian chemical
industry is one-tenth of the world average, which reflects the huge potential for further
growth. The Indian advantage lies in the manufacturing of basic chemicals that are also
known as commodity chemicals that account for about 57% of the total domestic chemical

Industry structure

The chemical industry can be broadly classified into two segments – organic and inorganic
chemicals. Organic chemicals cover over half of all known chemical compounds, and include
petrochemicals, drugs, cosmetics, agrochemicals, etc. Inorganic chemicals comprise alkalis,
dyes and dyestuffs.

Based on a more functional classification, chemicals can be divided into basic, specialty and
fine chemicals.

Alkali chemicals form the highest chunk in the total chemical production in India. During
FY10, alkali chemicals production (till February 2009) was 5.5 MMT and accounted for
around 71% of the total chemical production. The dyestuff sector is one of the important
segments of the Indian chemical industry and has forward and backward linkages with a
variety of sectors such as textiles, leather, paper, plastics, printing inks and foodstuffs. The
textile industry accounts for 70% of the consumption of dyestuffs.

Trend in production of the chemical industry

In the Indian chemical industry, alkali chemicals enjoy the highest contribution in the total
production. Since FY02-FY09, the representation of alkali chemicals in the total production
has been around 70%, followed by organic chemicals at around 20%. The share of dyes and
dyestuffs and pesticides, on the other hand, remain extremely low; however, the production
of dyes and dyestuffs has been increasing steadily since FY04 due to its growing significance
in sectors such as textiles, leather, plastics and foodstuffs. Nonetheless, the growth in
production of organic chemicals has been extremely sluggish. During FY03-FY09, the
production of inorganic chemicals rose steadily as compared with the steady production
growth of alkali and organic chemicals, therefore this segment grew at comparatively
healthier CAGR than the industry as a whole.

 In the case of alkali chemicals, soda ash has been enjoying the highest share in total
production since FY03. However, from FY08, the production of caustic coda has
been surpassing soda ash; the contribution of caustic soda increased to 38% in
FY09 from 29% in FY04.
 In the organic chemicals segment, the share of carbon black has been over 70% of
the total production since FY04 whereas in the inorganic chemicals segment, out of
the 19 products, methanol, acetic acid and acetaldehyde constitute over 50% of the
total production.

Imports dominate international trade of the Indian chemical industry

Imports of chemicals dominate the total trade of major chemicals; in fact, imports have been
representing around 68% of the total international trade volume since FY03. During FY08,
the chemical industry exported around 3.4 MMT of major chemicals while it imported 7.4
MMT of the same. The top importing and exporting destinations are China and Saudi Arabia,
and China and Africa, respectively. Due to the attractive incentives available to chemical
producers in China, their products are comparatively cheaper in the global markets, and give
a tough competition to Indian chemical players. During FY03-FY08, organic chemicals had a
dominating share in imports and contributed an average of around 57% in the total volume of

In FY08 organic chemicals contributed over 60% to the total volume of imports at 1.2 MMT
due to the strong domestic demand by end-user industries such as plastic and petrochemical
industries, which have been witnessing healthy growth since the past few years. However,
domestic players have been finding it difficult to meet the ever-increasing domestic demand
due to inadequate technologies. Thus, the production level of organic chemicals has been
stagnating, even though the capacity of organic chemicals is being added since FY04.


The government has made 100% FDI permissible and has de-licensed most chemical
products except those that are hazardous in nature to drive investments in the sector. During
FY01-FY09, the total FDI investments made in the chemical industry (excluding fertilisers)
was about USD 9,567 mn.
The extent of investment attracted by the chemical sector was evident in the number of
industrial investment proposals it received, inclusive of the Industrial Entrepreneur
Memoranda (IEMs)/LOIs/DILs. During August 1991 to July 2009, the total number of
proposals, filed or granted, stood at 9,898 and represented around 12% of the total proposals
filed/granted during the same period. The total proposed industrial investments in chemicals
(excluding fertilisers) formed around 9% of the total industrial investment that stood at
around Rs 4,763.6 bn. The proposed investments were stated to generate employment in
excess of 1.3 mn. According to the data available with the Secretariat for Industrial
Assistance (SIA), the Department of Industrial Policy and Promotion implemented 1,149
IEMs during August 1991 to July 2009 for an investment of Rs 445.6 bn. During January
2009 to July 2009, Rs 4.4 bn was invested.

The investment in the sector has been consistent and points towards the rising interest of
investors; however, it is imperative for the companies in the sector to devise new processes
and technologies, develop new products and to follow prudent environment norms to garner
more investments and investor interest.

Government initiatives

The government has taken various steps to improve the productivity and efficiency in the
chemical sector. The government policies such as 100% FDI and SEZ and industrial parks
model of development have also led to increase in the overall investment in the sector. Some
major initiatives taken by the government for the sector are:

 The licensing requirements have been removed except in the case of hazardous
chemicals. Entrepreneurs are now allowed to set up chemical industries through the
Industrial Entrepreneurs‟ Memorandum (IEM) route
 In the Union Budget 2009-10, the Department of Chemicals and Petrochemicals
was granted an outlay of Rs 239.7 bn. Likewise, the textile sector, which is the
most important consumer of the chemicals, was granted an outlay of Rs 450 bn to
concomitantly sustain textile sector growth and boost demand for chemicals.
 In order to develop the country as a major chemical hub, the government set up
petroleum, chemicals and petrochemical investment regions (PCPIR). These
regions directed investments for establishing manufacturing facilities for domestic
and export led production of petroleum, chemicals and petrochemicals. The PCPIR
may include one or more SEZs, industrial parks, free trade and warehousing zones,
EOUs, or growth centres, duly notified under the relevant central or state legislation
or policy. All the benefits available under the relevant legislation or policy will
continue to remain available to the said zones or parks, as the case may be, forming
part of the PCPIR.
 To mitigate the impact of the anti-dumping activities, the government imposed a
20% safeguard on soda ash and imposed such safeguard duties for other affected
chemical products as well.

Development of chemical industry in Maharashtra

The Indian chemical industry is well-established in Maharashtra. During FY07, the

production of major chemicals in the state was 565,481 MT. In the same year, chemical
production capacity of 17,928 MT was added that took and the total installed capacity
increased to 1.02 MMTPA.

Under the National Industrial Classification, the chemical industry includes basic chemicals
and its products –petrochemicals, fertilisers, paints, varnishes, gases, soaps, perfumes,
toiletries and pharmaceuticals. For the purpose of the cluster and industry study, the chemical
industry is classified into five major segments and these are as follows: alkali, inorganic
chemicals, organic chemicals, pesticides, and dyes and dyestuff. Accordingly, any reference
made to the Indian chemical industry hereon will include the information on these five major
segments exclusively.

Focus on core competencies and technological innovation

The Indian chemical industry is endowed with availability of low cost labour. The allied
industries such as leather, plastics, food processing, rubber, textiles offer huge growth
opportunities in the long term for the chemical industry. Besides, the government is also
undertaking several initiatives to sustain the growth of the industry. The promotion of Special
Export and Investment Zones, SEZs, cluster development and monetary incentives through
fiscal and policy initiatives will foster the growth of the industry. Infrastructure sector has
gained significant importance and is a priority focus of the government. Thus, the increased
spending on infrastructure will help in reducing the infrastructural bottlenecks in the long run.
However, issues like inadequate technologies, skilled labour, environmental norms and need
to innovate remain a threat to the industry.

The players must focus on specialising in their areas of expertise in line with the global trend.
Innovation is gaining importance as it enables focus on core competence and enables players
to lead in specialty products. The idea is to focus on one‟s core competency and select
business segments where competitive advantage exists. Likewise, the industry must focus on
improving its product and production processes by investing in technology development and
building R&D capabilities. Such a step will enable the industry to not only build its expertise
in a chosen field but also will lead to cut down in production costs. Adherence to
environmental and public safety norms and promotion of safe management of substances are
also pivotal areas that need focus right from the design, end use, to its final disposal
(hazardous waste) of products.

Logistical bottlenecks, high raw material and fuel prices and anti-dumping activities are
posing a threat to the industry in the short run. Thus technology up gradation, access to
skilled manpower and funds at a reasonable cost, adequate infrastructure support and
economical input costs are essential for the sustained growth and development of the Indian
chemical industry. Even though the industry is currently affected by economic recession, in
the long term it will benefit immensely from the high growth foreseen in its consuming
industries and the improvement in export markets.


HIL (India) Limited formerly known as Hindustan Insecticides Limited (HIL), a Govt. of
India Enterprise, under the Department of Chemicals & Petrochemicals, Ministry of
Chemicals & Fertilizers, Govt. of India, was incorporated in March, 1954 with the objective
of supplying DDT for National Malaria Eradication Programme launched by the Government
of India. Subsequently, the company diversified into agro pesticides to meet the requirements
of agriculture sector and has grown manifold with a turnover of Rs. 357.91 crore in the year
2016-17. Presently the company is also operating in agro inputs namely agro-chemicals,
seeds and recently it ventured into fertilizers so that all the requirement of farming
community can be met under one roof.

HIL has widened its product profile of technical products from 5 to 15 as on date. HIL is also
looking at development of alternatives to DDT. The company has already tied up with the
Institute of Chemical Technology, Mumbai, to develop a bio-degradable alternative to DDT
which can be used as an indoor residual spray. HIL is also at the advanced stage of
development of technology for insecticidal treated nets which is currently being promoted by
WHO as alternate vector control tool.

The authorized and paid up share capital of the Company were Rs. 100 crores and Rs. 91.33
crores respectively as on March 31, 2017. The shareholding of the Government of India in
the company is 100%.

The product range includes Insecticides, Herbicides, Weedicides, Fungicides etc. It has a pest
control division catering to industry houses and offices.

With the renewed focus on DDT, as a cost effective and efficient tool to fight Malaria, the
company has ventured into export of DDT 75% WDP mainly to African countries. With US
re-starting aid for procurement of DDT and WHO strongly endorsing usage of DDT for
indoor spraying, the company sees a great scope in emerging as the main DDT supplier to the
world as HIL is the world's largest DDT producer. Moreover, the company has more than 50
years of experience and expertise in the manufacture of DDT.
The company has been exporting its agro products to a number of countries such as
Netherland, UK, Jamaica, UAE, Manila, South Korea, Belgium, Guatemala, France,
Germany, Argentina, Ethiopia, Egypt, Spain, etc. for the last more than a decade and its
products are well-accepted in the world market. Company has a wide network of marketing
throughout the country through its six Regional Sales Offices and good number of dealers.
The company has three manufacturing units located at Udyogamandal, near Kochi (Southern
India), Rasayani near Mumbai(Western India) and Bathinda in Punjab (Northern India). The
company also has a Research & Development complex including an experimental farm at
Gurgaon in Haryana.

Our Vision

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

Our Mission

To provide quality products through clean and safe technology which would enhance
agricultural productivity and promote Public Health along with increasing product range,
exports, efficiency and productivity of the Company.

Udyogamandal unit

The Udyogamandal unit of HIL was the first among the central public sector undertaking to
the setup in Kerala during the second five year plan. This unit started with the manufacture of
technical grade DDT, a non systematic and widely used stomach and contact insecticide. This
unit was put up in the year 1957 for the manufacture of DDT technical and formulation.
Subsequently, endousulfan technical and dicofol technical plants were put up in the year
2001. This unit has ISO9001-2000 certification.

The unit now manufactures technical DDT, technical endousulfan and formulation. It has the
capacity of 1344 TPA of technical DDT and 2688 TPA for DDT. WDP DDT is not used in
agriculture, but is used extensively for the control of malaria and kola azar. The capacity of
technical plant for endousulfan in 1600 TPA and the formulation is 1910 KV per annum. The
BHC plant in the unit was shut down.
A new 150 TOA plant to produce dicofol has been started recently. The plant is the first of its
kind in India and only the second in the world. With the first of its kind in India and the only
the second in the world. With the proposed mancozeb significant part of the demand for two
widely used pesticides in India. i.e, endousulfan an insecticide and mancozeb, a fungicide.
The plant capacity is 1000 TPA for technical mancozeb and 1800 tpa for formulation. The
plant is based on the house technology of HIL developed by the research and development
division of the Udyogamandal unit.

This is a large organization having 710 employees with 210 employees in the engineering
section, 120 in the administration and 380 employees in the production unit. A well
functioning “Hindu week” gives the organization the elegant in age of a public sector
enterprises. Once in a week all the official writings dealings are done in Hindi.

The organization was awarded as the best unit safety precaution and also acknowledged as
the best co-promotion Hindi. The systematic functioning of all the departments and the
uniformity among the managerial, personal and unity among the whole employees helps the
HIL, Udyogamandal in achieving its goal.


1.This Code of Conduct (hereinafter referred to as the “Code”) shall be called “The Code of
Conduct for Board Members and Senior Management Personnel” of Hindustan Insecticides
Limited (hereinafter referred to as the “Company”).

2.This Code envisages that the Board of Directors of the Company (“Board”) and Senior
Management Personnel (as hereinafter defined) (collectively referred to as “Officers”) must
act within the bounds of the authority conferred upon them and with a duty to comply with
the requirements of applicable law.

3.The purpose of this Code is to enhance ethical and transparent process in managing the
affairs of the Company, and thus to sustain the trust and confidence reposed in the Officers
by the shareholders of the Company. Officers are expected to understand, adhere to, comply
with and uphold the provisions of this Code and the standards laid down hereunder in their
day-to-day functioning.

4.The principles prescribed in this Code are general in nature and lay down broad standards
of compliance and ethics, as required by Guidelines on Corporate governance for CPSE –
2007. The Officers should also review other applicable policies and procedures of the
Company for specific instructions and guidelines, which are to be read in conjunction with
this Code.

5.The Company currently has in place Conduct, Discipline & Appeal Rules, (the “ “Service
Rules for Managerial & Supervisory employees”), which govern the conduct of all
employees of the Company including Whole-time Directors but excluding Non Whole-time
Directors. This Code has now been framed specifically in compliance with the provisions of
Guidelines on Corporate governance for CPSE – 2007. In respect of the Company‟s Whole-
time Directors and Senior Management Personnel this Code is to be read in conjunction with
the “Service Rules for Managerial & Supervisory employees” Rules.

6.This Code shall come into force with effect from the 1st day of July, 2008.

7.All Board Members Officers should sign the acknowledgment form annexed as Appendix
II hereto and return the form to the Company Secretary indicating that they have received,
read, understood and agree to comply with the Code. All Officers shall be required to affirm
compliance with this Code on an annual basis, within 30 days of close of every financial year
to the Company Secretary, in the form annexed hereto as Appendix III.


As a public sector enterprise, HIL has a long and esteemed tradition of commendable
initiatives and practices of Corporate Social Responsibility which have played a reputable
role in the development of several under-privileged and differently abled persons and
economically weaker sections of the society. The main objective of the policy is to make the
Company act in a socially responsible manner towards the society.

CSR policy of the Company enables the creation and distribution of wealth for the betterment
of society in general, through the implementation and integration of ethical systems and
sustainable management practices. CSR policy lays down guidelines for the Company to
make CSR a key business process, to formulate policy with a balanced emphasis on all
aspects of CSR & Sustainability- equally with regard to HIL‟s internal operations, activities
and processes, as well as in their response to externalities.
As per the CSR Policy of the company, HIL will be committed to undertake activities in the
following areas:-

1. Providing safe drinking water

2. Distribution of school uniform to under-privileged students

3. Ensuring Environmental Sustainability

4. Developing a Global Partnership for development

5. Achieving Primary Education

6. Promoting Gender Equality and Empowering Women

7. Eradicating Extreme hunger and Poverty

8. Controlling HIV/AIDS, malaria and other diseases.

9. During the year 2014-2015, CSR initiatives of HIL were marked by continuous
commitment to the following projects -

(i) Providing safe drinking water to the residents of Eloor Gram Panchayat in Kerala and
Community Health Insurance Scheme.

(ii) Supporting education by means of free distribution of books, uniforms etc. to School
Children at Eloor village in Udyogamandal, Kerala and Sawla Village near Rasayani in

(iii) The company has provided On the Job Training (i.e. vocational training) and paid stipend
to the trainees and will continue to provide the same.

(iv)The company has adopted best practice for environment management, energy
conservation and social upliftment leading to sustainable development.


The company has remained focused on „Swachh Bharat Mission‟ launched by Government of
India to realize the dream of clean India and to bring behavioral change by creating mass
awareness. During the year, the company has undertaken various activities like intensive
cleaning drives, public awareness camps, in-house workshop, seminars, outside publicity
through banners, displays, distribution of leaflets etc. In-house competitions on the subject
matter were conducted at our units and RSOs located in different parts of the country. The
company has contributed in installation of dustbins in public places. HIL is in the process
construction of a toilet block for 150 girl students in Sawale Village, Maharashtra under the


1.The HIL R&D centre has the Motto as “GREEN ENVIORNMENT, CLEAN
ENVIORNMENT” and the organization following the lines has initiated one research project
involving the utilization of hazardous acidic by-product and converting it into a useful and
safe product – Surfactant/Emulsifier, thereby implementing the major principle of GREEN
TECHNOLOGY in the manufacturing process of the Organization so as to contribute for the
Environment and Sustainable development.

2.Development of safe, economical and environment friendly recipes for the existing
pesticide formulations, to improve cost efficiency by using locally available indigenous raw
materials and inserts.

3.Improve existing processes to enhance the efficiency, use of less toxic and eco-friendly raw
materials and to minimize environmental pollution.

4.To tackle periodical process related problems in our different units, for quality maintenance
and to give technical assistance for commercial level scale up activities of various products as
and when needed.

5.Assist manufacturing units in Plant Trails for commercial scale implementation of

Technologies developed by in-house R&D at Laboratory and Pilot Plant levels.

6.Replace wet analysis by instrumentation methods for analysis of Pesticides and their

Member of MSME Board constituted by the Ministry of MSME under Central Government.

Member of Jharkhand Investment Promotion Board (JIPB) constituted by the Government of


Executive Committee member of NIESBUD , an autonomous Institute under Ministry of

Skill Development and Entrepreneurship under Central Government.

State Treasurer of Swadeshi Jagaran Manch for 3 years between 1995 to 1998.

Presiding Rajasthan Oil Industrial Association since 1987 as Vice President.

Represented various forums of state Government bodies of various states.

Member of delegation to International Labour Conference to Geneva in 2014 representing

Employer`s Group.



The standing orders came into force from 7th October 1958,some of the important standing
orders are:

1) Recruitment
In matter of recruitment all other factors being equal preference is given to ex-
employees with good record, displaced persons, refugees and people of locality. All
recruits under company have to undergo medical examination by a duly authorised
medical officer and a certificate of eligibility for employment has to be obtained from
him, the examination fee will be paid by the person concerned.

2) Recording age
The establishment branch of company will record age of every employee, through
documents like birth certificate and matriculation or shall leaving certificate. An
employee who is unable to produce these documentary evidence of age will be sent to
the company‟s medical officer for examination and his opinion regarding the
employees age will be noted as final report.

3) Identity cards
Each employee of the company will be having identity cards/ temporary permit cards
which includes his name, designation, signature, identity mark and a photograph and
other particulars based on management‟s requirements. The card has to be duly
authorised by the management. Difference in temporary permit is, it will contain all
information as stated above except the photograph. He management will arrange
photograph at company‟s expenses and to be taken by its own photographer. All
permanent identity card and temporary permit is served as individual gate pass and is
valid only for working hours that employees concerned are instructed by management
to remain within the factory area in connection with the work. For entering outside
working hours special permission has to be obtained from the management and every
employee has to keep identity card within the premises and when it is demanded by
the watchman the employee has to present the identity card, while entering or leaving
the factory.

4) Entry, exit and search

The establishment gate is closed during work in hours and employees are not allowed
to leave the premises during working hours without permission. During entry and exit
the employees have to undergo detained search by the factory watch and ward staff.
Female workers are liable and be conducted in presence of not less than two other

5) Attendance
Attendance shall be marked daily according to the method prescribed for each branch,
section or plant. The employees who are required to sign in a register have to do so
during entering and leaving of the premises after work. Some of the employees are
required to use the time card on reporting duty by punching time in the time clock
provided by the company. During checking time if the employee is found absent he is
marked as absent and education is made in his wages. This is also applicable to
workman who is attending late od work.
6) Provident fund
All employees who have completed 12 months of continuous satisfactory service are
entitled to the company‟s provident fund.

7) Application for employment elsewhere

An employee who is seek in employment in elsewhere has to forward his application
through management. The employee is free to resign from the service in accordance
with term of his employment. The applicant will be informed whether his application
is forwarded or with-held.

8) Change of address
The employee have to inform immediately if there is change in the address, for
sending any purpose of notice.

9) Payment of wage during employment

Wages/ salary is paid in working day and during working hours on dates which is
notified in notice board of the factory. If there is any claim for unclaimed wages it
must be submitted within 3 years from the date on which wages become due to the
employee. If no claim is made within the specified period it is considered as time

10) Payment of wage during employment

Wages/salary is paid in working day and during working hours on dates which is
notified in notice board of the factory. If there is any claim fro unclaimed wages it
must be submitted within 3 years from the date on which wages become due to the
employee. If no claim is made within the specified period it is considered as time

11) Transfer between departments

Transfer between departments/within section is decided by management based on
suitability of requirement and pay to concerned employee shall be protected together
with seniority. If the transfer is the result either request of employee his seniority will
not be protected.

12) Stoppage of work

The management will stop work of any department partially or wholly if there is any
fire, breakdown of machinery, stoppage of power or water supply, reconstruction,
shortage of raw materials, failure of railway wagon etc. when stoppage of work
occurs employees are informed through notice which will include when it will be

13) Strike
The management may sometimes closedown either wholly/partially any department
or sections which are affected either directly or indirectly through employees striking
work. Supply of maximum notices to as many as employees will be given regarding
the close of section. Only persons who are said by management to work will be
continued in work during that period.

14) Leave
Leave with wages like sick leave, casual leave and such allowances as the employees
are entitled to receive are granted to all class of employees.

15) Safety
All employees have to follow all safety requirements when necessary else they are
liable to punishment in accordance with misconduct order.

16) Housing
Employees who are allotted for company quarters have to follow rules/regulations and
condition. The employee has to pay an amount based on type of accommodation
supplied. Appropriate charge is taken from employees considering all services like
water, electricity and such other amenities.
17) Medical
Employees on pay not exceeding Rs. 400/- a month will be governed by the scheme
of employees State Insurance Corporation. Others will get medical aid according to
health scheme of the Central Government.

18) Reporting accidents

Any employee to whom accidents occurs in work has to immediately report to
supervisor or person duly authorized by management and the supervisor has to report
it to medical officer with the accident advice.

19) Misconducts that clean to punishments

I. Wilful insubordination or disobedience with other of any lawful or reasonable
order of a superior.
II. Striking work or forcing others to strike work.
III. Theft, fraud and dishonesty in connection with company‟s property.
IV. Taking or giving bribes.
V. Collection money or canvasing for collection without permission of
VI. Habitual late attendance and habitual absences without leave or without
sufficient cause.
VII. Habitual indiscipline and negligence of work.
VIII. Smoking or possessing match boxes or flame producing material within
factory premises in place where it is prohibited.
IX. Causing damage to property
X. Refusal on part of employee to work on job or machine on which he is usually
XI. Gambling within the company
XII. Sleeping on duty
XIII. Slow down work
XIV. Threatening employees within the factory premises.
XV. Unauthorized use of company quarters.
XVI. Failure to inform medical officer about notifiable diseases
XVII. Acceptance of gift from subordinate employees
XVIII. Insolvency
XIX. Lending or borrowing money from subordinate
XX. Spreading false rumours or information that dispute the company
XXI. Continuous absence for more than ten days without satisfactory permission.
XXII. Theft of employers property
XXIII. Leaving work without permission

20) Complaints
All complaints arising out of employments including wrongful exaction from the part
of employees is submitted to Welfare Assistant of the company necessary enquiries
are made and reports are submitted to Works Manger. The decision of work manager
will be considered as final and if the person is not satisfied with the decision he can
submit an appeal to Managing Director of the company through works manager

HIL (INIDIA) LIMITED being a government company has a well organized management
structure. The top level managerial personnel are well qualified for the effective management
of the day to day activities that take place in this large organization. The administrative level
of the company is made clear in the organization chart.

The topmost authority is vested in the chairman who is also the managing director of the
company. Under him there are three Directors and the Chief General Manager, The Chief
General Manager is in charge of the entire attires of the organization.

The entire aspect of Finance is controlled by the Finance Director. Under him there is a
Finance Manager, a Chief Accountant, and Deputy manager for internal audit and other
Supervisory Personnel.

The Marketing function is vested upon the marketing Director. Under him there is a General
Manager who is in charge of the entire sales of the company.to his assistance there cones
other Supervisory Personnel including the plant supervisory.

The Deputy General Manager who assists the Chief General Manager directs the Engineering
Manager, Production Manager and Commercial Manager. Under the control of Engineering
Manager (EM) here comes the Deputy Engineer Manager, Maintenance Engineer (ME)

Industrial Engineer ( IE), Civil Engineer, Investment Engineer (IE), Chief Draughts Manager
(CD), Senior Electrical Engineer and other supervisory personnel including the supervisory
for workshop (SW)

The Deputy Production Manager, Chemical Engineer (CHE), Senior Technical Officers
(STO), Senior Technical Assistant (STA) and Plant Supervisors. Same under the production
manager. The commercial manager gets the assistance from the deputy commercial manager,
Safety Officers (SFO), Material Officers (MRO) and the Sales Officers (SO), the supervisory
personnel for purchases and ales.

The Research and Development activities are managed by the manager for Research and
Development (RDM). Under him there is a development chemist (DC), Junior Development
Chemist (JDC), The Chemical Engineer (CHE) and the supervisory personnel for quality
control, Research and Chemical analysis.

The Personnel Manager (PEM) is in charge of the personnel department. Under him there is a
personnel deputy manager, medical officer vested with the charge of Hospital Administration
and an Assistants Hindi Officer who is in charge of the well functioning Hindi cell within the
organization. The Human Resource activities as wel as Industrial Relations and welfare
activities are earned out by this department. The welfare officer, senior personnel for the
general service, welfare activities also comes under the personnel and human resources

4.1.1 DDT
DDT is one of the most controversial chemical compounds in recent history. It has proven
effective as an insecticide, but its potent toxicity isn't limited to insects. Banned by many
countries including the United States, DDT is nonetheless still used -- legally or illegally -- in
some places.

What Is DDT?

DDT, also known as dichloro-diphenyl-trichloroethane, belongs to a class of pesticides known

as organochlorides. A synthetic chemical compound that must be made in a laboratory (it
doesn't occur in nature), DDT is a colourless, crystalline solid.

DDT can't be dissolved in water; it is, however, easily dissolved in organic solvents, fats or
oils. As a result of its tendency to dissolve in fats, DDT can build up in the fatty tissues of
animals that are exposed to it. This accumulated build-up is known as bioaccumulation, and
DDT is described by the EPA as a persistent, bio accumulative toxin.

Because of this bioaccumulation, DDT remains in the food chain, moving from crayfish, frogs,
and fish into the bodies of animals that eat them. Therefore, DDT levels are often highest in the
bodies of animals near the top of the food chain, notably in predatory birds like eagles, hawks,
pelicans, condors and other meat-eating birds.

DDT also has serious health effects on humans. According to the EPA, DDT can cause liver
damage including liver cancer, nervous system damage, congenital disabilities and other
reproductive harm.

A Brief History of DDT

DDT was first synthesized in 1874, but it wasn't until 1939 that Swiss biochemist Paul
Hermann Müller discovered its potency as an all-purpose insecticide. For that discovery,
Müller was awarded the Nobel Prize in 1948.

Before the introduction of DDT, insect-borne diseases like malaria, typhus, yellow fever,
bubonic plague and others killed untold millions of people worldwide. During World War II,
use of DDT became common among American troops who needed it to control these illnesses,
especially in Italy and in tropical regions like the South Pacific.

After World War II, the use of DDT expanded as farmers discovered its effectiveness at
controlling agricultural pests, and DDT became the weapon of choice in anti-malaria efforts.
However, some insect populations evolved with a resistance to the insecticide.


Dicofol is an organochlorine pesticide that‟s effective against mites, but controversial
because of its environmental impact. Written as C14H9Cl5O or 2,2,2-trichloro-1,1-bis(4-
chlorophenyl)ethano, this acaricide is used on a variety of crops including cotton, apples,
citrus fruits, mint, strawberries, beans, peppers, tomatoes, walnuts, stone fruits, cucumbers,
ornamentals, and other fruits and vegetables.
Among the various mites that dicofol is effective against, it is often used on the red spider
mite, Pesticide News explained.

“Dicofol is used to kill crop-feeding mite pests such as the red spider mite. It is a contact
poison which kills the pest after being ingested and picked up from the surface of the crop. In
many countries, dicofol is also used in combination with other pesticides such as the
organophosphates parathion-methyl, and dimethoate,” according to the pesticide information

There are a number of commercial varieties that feature this miticide such as Acarin,
Cekudifol, Decofol, Dicaron, Dicomite, Difol, Hilfol, Kelthane, and Mitigan. In its purest
form, dicofol is a white crystal, however in most applications it appears as an amber-colored,
viscous liquid that smells like hay.

According to Oregon State University, dicofol was outlawed for a brief period in the 1980s
because of the way it was made and how much DDT was involved. Initially, the creation of
dicofol would create a substantial amount of DDT, which seriously impacted the
environment. Dicofol is chemically similar to DTT – C14H9Cl5 – which is lacking the
oxygen component of its miticide relative.


What is acephate?

Acephate is an organophosphate insecticide. It is used on food crops, citrus trees, as a

seed treatment, on golf courses, and in commercial or institutional facilities. At one time
acephate was used commonly in and around homes, but most of those uses are no longer
allowed. Acephate has been registered by the U.S. EPA since 1973.

What are some products that contain acephate?

Acephate products may be sold as powders, liquids, granules, tablets, and in water-
soluble packets. About 100 products that contain acephate are currently registered.

Always follow label instructions and take steps to avoid exposure. If any exposures
occur, be sure to follow the First Aid instructions on the product label carefully. For
additional treatment advice, contact the Poison Control Center at 1-800-222-1222. If you
wish to discuss a pesticide problem, please call 1-800-858-7378.

How does acephate work?

Acephate can kill target insects when they touch it or eat it. When insects eat acephate,
their bodies turn it into a chemical called methamidophos, which is another, stronger
insecticide. Acephate is less toxic in mammals because mammal bodies do not turn it
into methamidophos very well.

Acephate and methamidophos affect the nervous system, causing over-activity in the
nerves, muscles, or brain. Acephate is absorbed into plants, so insects that feed on
treated plants may eat acephate.
What happens to acephate when it enters the body?

Humans and animals absorb acephate into the body quickly when it is eaten, breathed in,
or gets on the skin. In animal studies, acephate was absorbed into the blood and went to
skin, liver, kidneys, and heart.

In humans and other mammals, about three quarters of the acephate moves through the
body unchanged. Some is broken down into smaller chemicals, and a very small amount
converts to methamidophos. In rats, most acephate was cleared through the urine, with
small amounts cleared through the feces or exhaled breath. Acephate clears the body
quickly; less than one percent of the acephate remained in rats three days after eating it.


Imidacloprid is a systemic insecticide that acts as an insect neurotoxin and belongs to a class
of chemicals called the neonicotinoids which act on the central nervous system of insects.
The chemical works by interfering with the transmission of stimuli in the insect nervous
system. Specifically, it causes a blockage of the nicotinergic neuronal pathway. By
blocking nicotinic acetylcholine receptors, imidacloprid
prevents acetylcholine from transmitting impulses between nerves, resulting in the insect's
paralysis and eventual death. It is effective on contact and via stomach action. Because
imidacloprid binds much more strongly to insect neuron receptors than to mammal neuron
receptors, this insecticide is more toxic to insects than to mammals.

As of 1999, imidacloprid was the most widely used insecticide in the world. Although it is
now off patent, the primary manufacturer of this chemical is Bayer CropScience (part
of Bayer AG. It is sold under many names for many uses; it can be applied by soil
injection, tree injection, application to the skin of the plant, broadcast foliar, ground
application as a granular or liquid formulation, or as a pesticide-coated seed
treatment. Imidacloprid is widely used for pest control in agriculture. Other uses include
application to foundations to prevent termite damage, pest control for gardens and turf,
treatment of domestic pets to control fleas, protection of trees from boring insects,] and in
preservative treatment of some types of lumber products.

Health impact

Imidacloprid and its nitrosoimine metabolite (WAK 3839) have been well studied in rats,
mice and dogs. In mammals, the primary effects following acute high-dose oral exposure to
imidacloprid are mortality, transient cholinergic effects (dizziness, apathy, locomotor effects,
labored breathing) and transient growth retardation. Exposure to high doses may be
associated with degenerative changes in the testes, thymus, bone marrow and pancreas.
Cardiovascular and hematological effects have also been observed at higher doses. The
primary effects of longer term, lower-dose exposure to imidacloprid are on the liver, thyroid,
and body weight (reduction). Low- to mid-dose oral exposures have been associated with
reproductive toxicity, developmental retardation and neurobehavioral deficits in rats and
rabbits. Imidacloprid is neither carcinogenic in laboratory animals nor mutagenic in standard
laboratory assays.

Midacloprid is moderately toxic and is linked to neurotoxic, reproductive and mutagenic

effects. It has been found to be highly toxic to bees and other beneficial insects. It is also
toxic to upland game birds, is generally persistent in soils and can leach to groundwater.
Health Canada has stated that the chemical's toxicity to bees and other insects is not in
scientific dispute.

Effects of imidacloprid on human health and the environment depend on how much
imidacloprid is present and the length and frequency of exposure. Effects also depend on the
health of a person and/or certain environmental factors.

A study conducted in tissue culture of neurons harvested from newborn rats showed that
Imidacloprid and acetamiprid, another neonicotinoid, excited the neurons in a way similar
to nicotine, so the effects of neonicotinoids on developing mammalian brains might be
similar to the adverse effects of nicotine.

Acetamiprid is an organic compound with the chemical formula C10H11ClN4. It is an

odorless neonicotinoid insecticide produced under the trade names Assail, and Chipco
by Aventis CropSciences. It is systemic and intended to control sucking insects (Lepidoptera,
Thysanoptera, Hemiptera, mainly aphids) on crops such as leafy
vegetables, citrus fruits, pome fruits, grapes, cotton, cole crops, and ornamental plants. It is
also a key pesticide in commercial cherry farming due to its effectiveness against
the larvae of the cherry fruit fly.

Acetamiprid is an insecticide belonging to the chloropyridinyl neonicotinoids, this family of

insecticides was introduced in the early 1990s. This compound is an insecticide that is
introduced for controlling pests, but also for domestic use to control fleas on cats and dogs.

Mechanism of action

Acetamiprid is a nicotine-like substance and reacts to the body in a similar way as

nicotine. Nicotine is a natural insecticide of which many man-made insecticides are
derivatives. Acetamiprid is a nicotinic agonist that reacts with nicotinic acetylcholine
receptors (nACh-R). These receptors are located in the post-synaptic dendrites of all neurons
in the brain, spinal cord, ganglia and muscular junctions. The activation of the nACh-R
receptors causes hyperactivity and muscle spasms, and eventually death. Acetamiprid is
highly toxic to insects, but less to mammals. This is probably due to a different form of
receptor in vertebrates.


Mancozeb is a dithiocarbamate non-systemic agricultural fungicide with multi-site, protective

action on contact. It is a combination of two other dithiocarbamates: maneb and zineb.The
mixture controls many fungal diseases in a wide range of field crops, fruits, nuts, vegetables,
and ornamentals. It is marketed as Penncozeb, Trimanoc, Vondozeb, Dithane, Manzeb,
Nemispot, and Manzane. In Canada, a mixture of zoxamide and mancozeb was registered for
control of the mildew named Gavel as early as 2008.

Mancozeb reacts with, and inactivates, the sulfhydryl groups of amino acids and enzymes
within fungal cells, resulting in disruption of lipid metabolism, respiration, and production
of adenosine triphosphate.

Mancozeb is listed under FRAC code M:03 The “M:” refers to Chemicals with Multi-Site
Activity. “M:” FRAC groups are defined as generally considered as a low risk group without
any signs of resistance developing to the fungicides.


Glyphosate (N-(phosphonomethyl)glycine) is a broad-spectrum systemic herbicide and crop

desiccant. It is an organophosphorus compound, specifically a phosphonate, which acts by
inhibiting the plant enzyme 5-enolpyruvylshikimate-3-phosphate synthas. It is used to
kill weeds, especially annual broadleaf weeds and grasses that compete with crops. It was
discovered to be an herbicide by Monsanto chemist John E. Franz in 1970. Monsanto brought
it to market for agricultural use in 1974 under the trade name Roundup. Monsanto's last
commercially relevant United States patent expired in 2000.

Farmers quickly adopted glyphosate, especially after Monsanto introduced glyphosate-

resistant Roundup Ready crops, enabling farmers to kill weeds without killing their crops. In
2007, glyphosate was the most used herbicide in the United States' agricultural sector and the
second-most used in home and garden (2,4-D being the most used), government and industry,
and commerce. By 2016 there was a 100-fold increase from the late 1970s in the frequency
of application and volume of glyphosate-based herbicides (GBHs) applied, with further
increases expected in the future, partly in response to the global emergence and spread of
glyphosate-resistant weeds.

Glyphosate is absorbed through foliage, and minimally through roots, and transported to
growing points. It inhibits a plant enzyme involved in the synthesis of three aromatic amino
acids: tyrosine, tryptophan, and phenylalanine. Therefore, it is effective only on actively
growing plants and is not effective as a pre-emergence herbicide. An increasing number of
crops have been genetically engineered to be tolerant of glyphosate (e.g. Roundup Ready
soybean, the first Roundup Ready crop, also created by Monsanto) which allows farmers to
use glyphosate as a postemergence herbicide against weeds. The development of glyphosate
resistance in weed species is emerging as a costly problem.

While glyphosate and formulations such as Roundup have been approved by regulatory
bodies worldwide, concerns about their effects on humans and the environment persist, and
have grown as the global usage of glyphosate increases. A number of regulatory and
scholarly reviews have evaluated the relative toxicity of glyphosate as an herbicide. The
German Federal Institute for Risk Assessment toxicology review in 2013 found that "the
available data is contradictory and far from being convincing" with regard to correlations
between exposure to glyphosate formulations and risk of various cancers, including non-
Hodgkin lymphoma (NHL). A meta-analysis published in 2014 identified an increased risk of
NHL in workers exposed to glyphosate formulations.

In March 2015 the World Health Organization's International Agency for Research on
Cancer classified glyphosate as "probably carcinogenic in humans" (category 2A) based on
epidemiological studies, animal studies, and in vitro studies. In November, 2015,
the European Food Safety Authority concluded that "the substance is unlikely to
be genotoxic (i.e. damaging to DNA) or to pose a carcinogenic threat to humans," later
clarifying that while carcinogenic glyphosate-containing formulations may exist, studies "that
look solely at the active substance glyphosate do not show this effect." The WHO
and FAO Joint committee on pesticide residues issued a report in 2016 stating the use of
glyphosate formulations does not necessarily constitute a health risk, and giving admissible
daily maximum intake limits (one milligram/kg of body weight per day) for chronic
toxicity. The European Chemicals Agency (ECHA) classified glyphosate as causing serious
eye damage and toxic to aquatic life, but did not find evidence implicating it to be a
carcinogen, a mutagen, toxic to reproduction, nor toxic to specific organs.

1. Human Resource & Administration Department

2. Finance Departments

3. Commercial Departments

4. Production Departments

5. Engineering Departments

6. Fire and Safety Department

7. Research and Development Department

8. Maintenance Department

Human resource policy

HIL, the only CPSU in the manufacture of Insecticides and pesticides, has been operating in
a challenging business environment with competitors from Private Sectors. The Company
competes with more than seven hundred formulators ranging from multinationals to small
player. The Company is striving for planned and consistent growth in years to meet its
desired objective. To manage this kind of operations, HIL needs highly skilled personnel and
competent manager and administrators who can not only take the challenges but also excel
themselves in competitive environment with ability to take risk, operate in a completive
environment, complete the projects in time within the cost frame and at the same time have
an acceptable profit margin not only to sustain, but also to have reserve to meet future
requirements. In order to meet the present and future manpower to a system of selection that
ensures induction of the best and the most competent personnel to take up challenging
assignments in the Company. The selection process seeks to emphasize evaluation of
individual capabilities in terms of their potential for fulfilment of Company‟s objectives.

We are committed to continual improvement and excellence in all our HR

interventions through:

Developing and nurturing an organizational climate which encourages creativity and


Inducting appropriate quality of manpower and retaining them

Making proactive efforts to maintain Cordial industrial relations and discipline through a
system of periodic interaction with employee collectives.

Laying down of all the employee related policies properly and following these transparently.


Unit Name Total employees Executives Non-Executives

Udyogamandal Unit 208 73 135

Rasayani Unit 597 99 498

Bathinda Unit 177 31 146

RSO 63 48 15

Head Office 57 37 20

Total 1102 288 814


Transfers are in general necessitated due to requirements of filling up of posts, meeting staff
requirements at remote/un-popular/difficult stations, matching employee‟s skills with job
requirement, gainful deployment of surplus staff, sharing of shortages, evenly distribution of
staff over recruiting zones, movement of staff from sensitive posts, other administrative
requirements or meeting personal or tenure related requests etc. No formal transfer policy has
so far been evolved and there have been an urgent need for a well defined transfer/ posting
policy in the Company to meet the challenges of the new business environment. As such, the
transfer/posting policy is proposed as under:-


No Posting Policy can be absolutely rigid if it is to serve the organizational and functional
necessities of any organization from time to time. However, broad guidelines for regulating
normal postings and transfers of the employees are essential in order to prevent arbitrary and
adhoc movements of the individuals. In view of this as well as long outstanding demand of
the workers unions and officers associations, the Posting Policy given in succeeding
paragraphs has been evolved. The transfer/posting shall generally conform to this policy
frame work.

This Transfer policy shall apply to all Regular Employees (Executive & Non-Executives)
Employed in all Units, RSOs, and Corporate/Registered Office.

Nature of Transfer

An employee may be transferred from one Plant / Department / Unit / Location to another on
any of the following grounds: -

A) Request Transfer: -

Request for transfer from the employee for personal reasons subject to requirement at other
locations and approval of the Management.

B) Mutual Transfer: -

Employees of the same status and working in the same department/section shall apply for
mutual transfer through proper channel for other Unit/Location.

C) Lateral Transfer: -

Transfer to other discipline against departmental advertisement on lateral transfer basis.

D) Lateral Transfer: -

a) On need basis

b) On rotation

c) On re-deployment

d) On promotion

e) On re-designation on acquiring higher qualification

E) Transfer to other PSU/Central/State Government on deputation

It will be guided by the directions issued by Central Government from time to time. It will be
subject to Board approval and at the sole discretion of the Management to decide as to
whether the services of the employee can be spared or not.

Posting Policy

Under administrative exigency, an employee can be transferred outside his / her Region /

Following periodicity shall normally be maintained while ordering transfers: -

Employees in Groups A&B – Not exceeding three years if in a sensitive post and five years
in other posts.

Employees in Groups C&D – Five years.

Note: - Not with standing the above periodicity, transfer can be ordered at any time on the
grounds such as changes in establishment, promotion, unsatisfactory performance and
administrative reasons.

Group C&D employees working in sensitive posts/seats shall be shifted within three years to
a non-sensitive post.

The sensitive posts/seats shall be identified by the Chief Vigilance Officer / Vigilance Officer
posted at each Unit from time to time.

Once the transfer is ordered the individual shall move within a period of 30days or as
specified in the transfer order.

In case retention of an individual became absolutely necessary for administrative reasons due
to exigencies / expediency of service, written permission of the Competent Authority shall be
obtained within 15 days of the transfer order.

Employees who refuse to move to other station either on promotion otherwise and proceeded
on leave to avoid such transfer shall not be retained on the same post and shall be relived in
No staff has a right for posting at his choice for another location. However, they may be
offered such postings subject to availability of vacancy and if the posting is in the interest of
the Company.

Eligibility for the Transfer benefit: - The employees whose transfer does not involve the
change of their headquarter or change of HQ in the same municipality limit shall not be
eligible for the transfer benefits. In order to have a liberal transfer policy and to mitigate the
financial burden of the group of employees, who by virtue of their nature of duties, require to
be transferred/re-deployed frequently like marketing field staff etc., the onetime transfer
grant, travelling expenses for self with the maximum Joining period of three days including
weekly off/holidays shall be given, if the transfer/posting does not involve the change of HQ

Transfer Benefits

Except in case of Request/ Mutual transfer an employee will be eligible for transfer benefits
as per TA/DA rules.

Joining time facility :

Employees transferred from one location/unit to another location/unit involving changes of

residence are entitled to joining as below:

Distance between one unit to another unit No. of Days

i) 1000 Km or less 10 days

ii) More than 1000 Km but less than 2000 Km. 12 days

iii) More than 2000 Km. 15 days.

(Except in the case of travel by air, for which the maximum period is 12 days).

Extension of joining time beyond the above limits may be granted up to maximum of 30 days
by the CMD or a Functional Director. The guiding principle for sanction of additional joining
time would be that a total of 8 days for preparation plus reasonable transit time including time
unavoidably spent due to disruption of traffic caused by strikes, natural calamities etc.
No joining time is admissible in the case of „temporary transfer‟ for a period not exceeding
180 days. Only the actual transit time is allowed as in the case of journey on tour.

An employee on joining time is treated as on duty and is paid pay and allowances as
applicable at the old station from which he is transferred.

Not more than one day‟s joining time shall be allowed to join a new post within the same
station or when change of residence from one station to another is not involved.

When an employee joins the new post without availing of full joining time the No. of days of
joining time admissible subject to the maximum of 15 days reduced by the number of days
actually availed of, shall be credited to his earned leave account (Non-cashable A/c) subject
to the restriction on accumulation of earned leave.


An employee proceeding on journeys on tour under these rules may be granted advance to
meet the cost of travel and other reimbursable expenses. A bill for adjustment of the actual
expense against the advance should be submitted within one month of completion of the
journey. Otherwise the advance will be liable to be recovered from the employee‟s salary.

Temporary Transfer

Transfer to a place for a period not exceeding 180 days be treated as “Temporary Transfer”
and in all such cases the journey form headquarters to station of deputation and back may be
treated as on tour for purpose of regulation of traveling allowance.

Daily allowance for the days of halt at the station of transfer shall b e payable as under:

First 180 days Full daily allowance

Beyond 180 days Nil

No advance of pay may be allowed in the case of temporary transfer:

Other conditions:
In case where the transfer initially made for a period exceeding 180 days is subsequently
reduced to a period of 180 days or less, the transfer traveling allowance originally allowed
should not be changed to the disadvantage of the employee.

If a temporary transfer initially made for a period not exceeding 180 days is later extended
beyond this period, the traveling allowance already drawn shall be adjusted in the transfer
traveling claim but the daily allowance admissible up to the date of issue of orders extending
the transfer, will not be so adjusted.

Every transfer order should specify whether it is a regular or a temporary transfer for a period
not exceeding 180 days. The nature/period of transfer to be indicated in the column “purpose
of journey” prescribed in the Traveling Allowance Bill.

The order contained above apply only in the matter of regulating traveling/daily allowance
and bear no effect on other factors like assumption of charge of a new post, change of

Posting of Office Bearers: -

Office bearers of registered / recognized Unions / Associations shall not be immune to

transfer and shall be subjected to transfers as per the norms laid in this Posting
Policy especially with regard to the sensitive posts. They may, however, if possible, allowed
to continue in the same station during their tenure of office in the Unions / Associations.

Seniority of the Persons: -

Seniority of the employee transfer will be determined as follows: -

The seniority of employee transferred from on Unit/ Division/ Office/ to another with/
without change in the discipline, will carry his old seniority (based on the date of
appointment in the sale of pay/post) if such transfer is made on administrative grounds by
management and his seniority will be protected.

9.2 The seniority of employees transferred at their own request or mutual from one Unit/
Division/ Office to another with/ without change in the discipline, will be at the bottom of the
seniority list of employees of the transferred discipline.
Representations Against Transfers / Postings

Representation, if any, against the transfer / posting orders will be made through proper
channel by the affected individuals within 7 days of the receipt of posting orders. When the
representation received through proper channel is considered and rejected at an appropriate
level, the concerned individual will move without further delay, failing which he will be
relieved / deemed to have been relieved by the Competent Authority besides that the
employee concerned will expose himself / herself for Disciplinary action.

Employees should refrain from bringing any outside or political pressure in the matter of their
transfer / posting. Any attempt to bring any political or outside influence to bear upon the
Management to further his interests in matters pertaining to his service including transfer /
posting will render him liable to Disciplinary action.

In Case of not complying with the orders of transfer after an employee has been relieved from
his Zone/Units his/her absence will be treated as unauthorized and all necessary action
including disciplinary action would be initiated against the said employee as per the
Company Rules.

Interpretation of Transfer Policy

This transfer policy has been evolved for regulating the transfers of the employees in a fare
and reasonable manner. It is also aimed to provide the maximum satisfaction to the

In case of any doubt regarding interpretation or implementation etc. of any of the clause of
Transfer Policy, the decision of the Management shall be final and binding.

Inter Unit transfer CMD

Marketing including RSOs D (M)

Inter Department (Unit) Unit Head

Inter Department (HO) Head of Department (With the Approval of concerned Director)
However, In general Chairman & Managing Director may change/ modify/ alter the transfer
of an employee.

The power to review, modify/ amend the provisions of the above scheme shall vest with the
Chairman & Managing Director.




W Asst O (AD) W

There exists an inseparable relationship between finance on the one hand and production,
marketing and other function on the other. Almost kinds of business activities, directly
involve the acquisition and use of funds. Finance function or decision include:-

 Investment or long term assets mix decision

 Financing or capital mix decision
 Dividend or profit allocation decision
 Liquidity or short term assets mix decision

HIL performs finance functions simultaneously and continuously and they call for skilful
planning, control and extraction of firms activities. The finance department is headed by
deputy general manager. The organization has a weak financial position in the point and it
retied various sources for meeting its financial commitments.

The various source of fund include:-

 Shareholders fund committee of share consisting of share capital and reserve and
 Secured and unsecured loans

The various items of expenditure include expense on

 Material consumed
 Manufacturing expenditure
 Employee remuneration and benefits
 Sales, administration and other expenditure
 Interest
 Depreciation
 Differed revenue expenses written off
 Investment written off
 Products allocated for trail run production of new projects

In accordance with the figure given, the network in the financial position of the company
looks several charges. The source of funds required by the company for the day to day
activities has increased consequently. The sales of the company have shown a remarkable
increase with the passage of time due to the new production, introduced into the national and
international markets.

The finance department consist of:-

1. Bill section
2. Costing section
3. Payroll section



AM (F) AFM (2)



There 12 employees working in commercial department. The department is headed by the

deputy general manager. This department is divided into 3 sections:-

i. Purchase
ii. Sales
iii. General store

The manager is the coordinator of production and commercial departments. Under him there
is one Commercial Manager. He is the Chief of Commercial Department. Under the
Commercial Manager comes Deputy Commercial Manager who looks after mainly the
offices of purchase section. Under him there are two officers,

a) Sales officer
b) Material officer

Purchase section

Deputy Commercial Manager is the head of the section. Under him there are two
superintendents who supervise the activities done by the clerical staff. Purchase orders are
classified into three:-

Order below Rs. 2 lakhs

Order below Rs. 2 lakhs and below Rs. 5 lakhs

Order above Rs. 5 lakhs

For the purpose of order below Rs. 2 lakhs, they keep a list of suppliers called vendors list.
From vendors list they choose the appropriate supplier and send enquiry notes to them. If
they positively and they have stock of materials, then the company sends purchase request to

For orders of and above Rs 2 lakhs, the company will put tender in newspapers. Filled up
tenders forms and earnest money deposit will be received up to a specific date. The tenders
will be opened on a particular date and the supplier who is willing to give materials at the
lowest cost will get the purchase request. A separate file is kept against each purchase

The supplier who is willing to supply the materials at the lower cost will get purchase order.
This second step in a purchase deal payment is done in one of the following three modes:-

i. At 30 days credit
ii. Document through bank
iii. Advance against delivery

After the materials are delivered to the stores by the supplier, the stores issue a material
receiving note (MR note) to the purchase section. After receiving the mr note, related to that
order will be closed. After the delivery the stores will inspect the material and in case of any
damages, will take procedures to get back the money.

Major items purchased by the company

Alcohol, Buten Dio, Chloral caustic soda Lye, Calcium terra chloride, china clay carbon, terla
chloride caustic soda sulphade, carbon D1 sulphide, chlorpyriopos tech, calcium lingo
suphonate, eplichlore hydrine. Ethylene, diaine, expiodideded, soya bean oil, hexa chlora
cyclo pentadine (HCCP), hydrated calcium salacate, hexamine, manganese, sulphate,
monochlore benzene (MCB), oleum, soda ash, sodium lingo sulphate, thionyl chloride, zinc
chloride, zinc sulphate.

Sales section

The sales officer heads the section and the superintendent and apprentice assist them in
rendering their duties. The marketing of the finished products is planned and coordinated by
the corporate office at Delhi. After canvasing the order, the largest is finalized for each year.
Office headed by the Director (marketing) issues dispatch instructions to the manufacturing
unit on that basis, each manufacturing unit schedules its production plan. The udyogamandal
sales section mainly does the dispatch services.

As per the despatch advice, sales section plans “schedule dispatch” of finished products, by-
products and miscellaneous items. Disposal of by-products, miscellaneous and scrap items
also is a function assigned to sales function. For this purpose has to contact different
manufacturing agencies, traders and dealers. The by-products are waste recovered sulphuric
acid from plants.

On the basis of availability of stock of finished products ready for despatch, sales section
instruct the empanelled transport to place the truck inside the premises of the factory, entry
permission is issued by the security officer, after checking the trucks and receiving tools list,
permit the trucks to enter inside. Thereafter the truck is weighted and the type weight is
recorded. The truck is then accompanied by a security and is parked at the concerned ramp.

Simultaneously instructions are given to the production department and security, showing the
packing details and products. The loading crews are also given instructions. After loading the
production supervisor issues detailed list of products loaded. Then the truck is against
weighted. On the basis of weight bridge report, signed by the security, documents are

Firstly, material ate pass is prepared. If the transaction is interstate, form 26 (Central Sales
Tax Delivery Note) is sent along with the consignment if the material is excisable, invoice
cum excise gate pass is also raised. A copy for transporter and an extra‟s copy are also sent
along with the consignment as per the customs and central excise duty. Central excise invoice
shows the basic price of the material, total cost of the consignment and sales tax. This
document is a proof for the debit of Central Excise Duty to the Excise Department.

If the transaction is an inter unit transfer (stock transfer) after preparing the above mentioned
document, debit note is raised and sent to the concerned regional office if it is a sales
consignment, commercial invoice is raised and sent to the parties. Immediately after the
consignment, the details of dispatch are communicated to the party. Information is also sent
to the co-operative office. Every transaction is recorded on daily, monthly and yearly basis
and these reports are submitted to the general manager every day and communicated to Head

General store

The general store is managed by the Material officer, Senior store keeper, Junior Assistants
and helpers assist him is rendering his duties. The main function of general stores is:-
a) Receipt and issue of materials.
b) Inventory control

In receipt of material, first purchase request is raised. This may be done in two ways:-

A. Upon the request of the user action, a store raises PR. This is because the user section
only can asses the requirements of some average moving material used by them. But
will be routed through stores only.
B. Stores raised PR for maximum moving item. In the case of such item, the annual
requirements per year are forecasted based on production forecasts and communicated
to the stores at the beginning of the year.

Next action is taken by the purchase section. Based on the PR forwarded to the purchase
section they place purchase order to selected supplies who supply the material within due
date. After the material is supplied to the stores, by the supplier, stores issues a material
receiving note from purchase section. This stores also inspect the materials arrived for any
damages or shortage materials. In such case, the stores initiate procedure to get the money
back. This may be done either from the earner in which the material are arrived or the
supplier or the insurance company. A copy of inspection report and material receiving note
are also send to the bills section in account department.

Inventory control means controlling the stock of material so as to avoid unnecessary stoppage
of production at minimum cost. Non moving items are removed at the earliest action. If
materials needed by the plant are out of stock, the production at the hat plant will be stopped
the duty of the stores is to produce the materials at the right place. Materials are purchase on
the basis of production schedule otherwise the quality assessment of material purchased will
be difficult. Maintenance materials will also be ready at stock at any time.






There are 135 employees working in the production department. Each product is seal with
each section and this helps to improve the skills efficiencies of workers. The production is
headed by DGM, under him comes production manager. Under the production manager, there
are five Deputy Production Managers. The main function of the production department is to
produce the finished products to meet the sales orders. The apartment also takes care to
provide training to operators. It is also conscious of pollution controls and environment
protection. A centralised effluent treatment plant in which the entire quantities of liquid
effluent generated from all plant in which the entire quantities of liquid effluent generated
from all plants are treated and discharging as per standards.

Effluent treatment system was put up based on the process designed by national
environmental engineering research institutes, the national authority in the field of
environmental engineering a cost of nearly one crore rupees. The equipment designed
engineering and creation was done by M/S Richardson and Cruges Ltd, a government of
India enterprise. HIL has periodically incorporated several modifications and editions to the
system. Constant vigil is exercised in ensuring the quality of the treated effluence discharged
by the analysed samples in HIL‟s own quality control laboratory which is approved by the
state pollution control board. A portion of the treated water is recued and the balance quality
only is discharged.

The departments implements new projects. The plant in charge supervise the entrusted to him
and exports the Deputy Production Manager so far no plant operates at its full capacity.
Production is done only to meet the sales order.





The department is headed by two Deputy General Managers (Engg) under one GM. There are
three Deputy Engineering Managers, three senior engineers, one mechanical engineer,
supervisors and foreman help them in rendering their duties. Under the other DGM, only one
civil engineer is working. The function of engineering department is the maintenance of
plants, building and equipment. The department is very much connected to the production
department . repairs to the plant and equipment are done them and there. Electrical fittings
are also maintained by the department.

The functions of engineers / assistant engineers

 Review of indent
 Releasing enquiries
 File processing
 Review of purchase order
 Follow up with vendors
 Any other work assigned by head of material/ group in charge.

The department consist of several sections:

 Maintenance section
 Instrumentation section
 Drawing office
 Electrical section
 Civil section
 Fire and safety

87 employees are working in thus department and each section has 10to 15 employees and
trainees to carry out the functions pertaining to the section.

The repairs and replace of machineries, tools and infrastructure is done by the maintenance
and instrumentation section.

The designing part is done by the drawing house.

The control of power supply and electrical maintenance are done by substation and electrical

The civil section handles the maintenance of civil nature like construction and repair of

Fire and safety

This department is headed by the Deputy Engineering Manager who is also the safety officer.
Under him come fire officer and fireman. The trainees are taken from FACT and they are
supervised by the safety officer.



AM (C)




IN HIL (INDIA) LTD, in the field of production by order method is going on. Hence
maintenance work of plant and machinery can be carried out in a day to day manner.
Engineering department is functioning actively for the above which actively for the above
which has the section of civil, mechanical, electrical, instrumentation etc. The plants are
inspected regularly and all the safety measures are taken by the plant in charge and operators
while operating the plants. If any accidents occur in plants, the person injured will be
admitted in the factory premises. If it‟s a major accident, he will get compensation through
group insurance scheme and a certain percentage of salary for the days on which he was not
able to attend the job.

Health and safety policy

HIL, Udyogamandal a leading manufacturer of pesticide is committed to

1) Protect employees by imparting training and personal protective equipment‟s

wherever necessary.
2) Protect equipment by incorporating a build in safety system using modern engineering
3) Protect environment by imparting training, monitoring and controlling the effluent
discharge as per stipulation laid down by Kerala State Pollution Control board.
4) Maintaining good and safe working conditions.
5) Monitor the health condition of the employee by conducting periodic medical check
6) Aim for zero accident by investigating, analysing the accidents and implementing the
recommendation suggested tpo prevent recurrence.

Safety measures adopted

For employees:-
Employees are issued personal protective gadgets like helmets, acid, organic vapour
respirations, gloves, aprons, gum boot, shoes and are insisted to wear the safety gears at

For machinery and equipment:-

 Most machines and equipment used in the unit have built in safety mechanism.
 Pneumatic safety devices have been incorporated for some machines.
 Emergency vent system and scrubbing system are incorporated to release excess
pressure built up in reaction.
 Lift tackling like chain, pulley block, clings etc and pressure vessels are tested and
certified by engineers.
 Distributed control system introduced in the endousulfan plant recently ensures more
safety to equipment, employees and environment.

For surrounding environment

 The unit has a centralized effluent plant, which treats the water before being
 Gaseous waste produced is treated before being discharged.
 Solid waste is burned and the ash is used as landfill.

Accidents in plants

HIL comes under major accidents hazardous factory category. If any accidents occur in the
plant, it is the duty of the Safety Officer to investigate on it. If it is a minor accident, the
person will be admitted in the dispensary inside the factory premise. If it is a reportable i.e, if
it is necessary to take the person outside the factory compound in ambulance and admit him
to a hospital and if he is not able to report on the job within the next 48 hours, then it will be
considered as a major accident. In such cases, the injured person will get compensation
through Group Insurance Scheme and a certain percentage of salary for the days on which he
was not able to attend the job.




There are 12 employees working under the Quality Control Department. This department is
headed by assistant man quality control officers and two quality control officers. Under them
there are two quality control supervisors. They are assisted by analysis and lab attendants.
The duty of this departments is to ensure quality of products at every level of the process
according to the standard norms. Samples of the raw materials are tested for quality before
using them in plants. Samples of process in progress products are taken after each process
and tested its quality. If the process samples are not up to quality, it will be corrected in the
next stage of process. If all the process samples keep the exact quality, the final product will
also be exact quality, Then only they will be ready for packing.

Quality policy

 Omitted to provide quality pesticides that ensure total consumer satisfaction.

 Adhere to the quality standards at all stages of operations and improve process.
 Provide quality pesticides that ensure total customer satisfaction
 Deliver the products on time,
 Enhance productivity, safety and environmental performance.

HIL R&D Centre, Gurgaon

1.The HIL R&D centre has the Motto as “GREEN ENVIORNMENT, CLEAN
ENVIORNMENT” and the organization following the lines has initiated one research project
involving the utilization of hazardous acidic by-product and converting it into a useful and
safe product – Surfactant/Emulsifier, thereby implementing the major principle of GREEN
TECHNOLOGY in the manufacturing process of the Organization so as to contribute for the
Environment and Sustainable development.

2.Development of safe, economical and environment friendly recipes for the existing
pesticide formulations, to improve cost efficiency by using locally available indigenous raw
materials and inverts.

3.Improve existing processes to enhance the efficiency, use of less toxic and eco-friendly raw
materials and to minimize environmental pollution.

4.To tackle periodical process related problems in our different units, for quality maintenance
and to give technical assistance for commercial level scale up activities of various products as
and when needed.

5.Assist manufacturing units in Plant Trails for commercial scale implementation of

Technologies developed by in-house R&D at Laboratory and Pilot Plant levels.

6.Replace wet analysis by instrumentation methods for analysis of Pesticides and their

Mgr R & D






The workforce of the HIL Kerala unit is very highly experienced and posses the
technical know-how of doing things. Most of the employees are from the nearby
places. HIL has an enviable track record in producing the required amount of DDT for
the insecticides eradication program which was put forward the government. also
because of the peculiar nature of the products like DDT, its production by any other
private party is banned by the government and hence in this field HIL experiences
absolute monopoly. Essential raw materials are readily available from the nearby
factories like TCC Ltd. Hence this greatly reduces the cost incurred.

Being a public sector firm with a commitment to eradicate the pest born diseases in
the country, this unit has got number of limitations. The unfavourable financial
position, though the main product have monopolistic nature of production shows the
lack of updated marketing techniques and less concern towards the marketing
department. The financial crisis due to lack of adequate finding is another weakness
of this unit.

 Wide market
 Steady growth of users
 Market for eco-friendly products
 Scope for product diversification


 Environmental pollution
 Increase in cost of raw materials.
 Competition

The five-factor model of porter is an outside in business unit strategy tool that is used

make an analysis of the attractiveness of an industry structure. The competitive

forces analysis is made by the identification of fundamental competitive forces threat

of the entry of new competitors

Profitable markets that yield high return will attract new firms. This result in many

new entrants which eventually will decrease profitability for all firms in the industry.

Unless the entry of new firms can be blocked by incumbents, the abnormal profit rate

will trend towards zero (perfect competition)

The existence of barriers to entry (patent, rights etc).The most attractive segment is

one in which entry barriers are high and exit barriers are low. Few new firms can

enter and non- performing firms can exist easily.

 Economics of product differences.

 Brand equity.

 Switching costs or sunk costs

 Capital requirement.

 Access to distribution.

 Customer loyalty to established brands

 Absolute cost.

 Industry profitability; the more profitable the industry the more attractive it will be

to new competitors.
Pictorial Depiction of Porters Five Factor Analysis


• Threats of entry posed by new or potential competitors are low.

 Challenging regulatory conditions; High entry barriers due to costs associated with

research & development of new insecticides (i.e. years of investment in R&D for a

drug that may/may not work)

 Government regulation (i.e. FDA)

 The threat of entry posed by new or potential competitor is a LOW competitive force

due to the above entry barriers & regulatory constraints.


 High rivalry among main companies in the industry.

 The degree of rivalry among existing firms is a high competitive force


 Bargaining power of suppliers is low .

 Sales for the chemical industry concentrate in a handful of large players and that has

decreased the bargaining power of suppliers.

 The bargaining power of suppliers is a LOW competitive force


 The main buyers of HIL (INDIA) LTD is Government of India

 Bargaining power of buyers is medium.

 The bargaining power of buyers is a MEDIUM competitive force.


 Closeness of substitute products are high.

 The closeness of substitute products is a HIGH competitive force

Overall and based on the above analysis of Porter‟s Five Forces, we can conclude that

the chemical is not attractive for new entrants.


This Organizational Study on HIL (INDIA) LIMITED carried out as part of

my MBA course with MG University, Kottayam has really enabled me to

understand the Organizational structure, manufacturing process, departmental

interactions and the ways & means of their functioning. It was found during the

study that HIL (INDIA) LIMITED that it is indeed a organization with strong and

unique characteristics and functions. The company has huge capital investment &

good number of people working in it. There is a well-established organizational

structure with the top level management, the middle level management and the

bottom level. Being a HIL Group undertaking, it has well laid policies and strong

operational procedures.

Although it is a large size industry, the departments and sections are so well

differentiated and managed by different managers. Statutory facilities like PF,

Gratuity and lot of voluntary welfare measures for employees help increase their

motivation and productivity levels. through this organizational study i can conclude

that the pharmaceutical industry is not attractive for the new entrance due to the

high market competition.

The organizational study in HIL has enabled me to understand the various

needs of an organization, how an organization should functions and how important

it is to make a good industrial relation in the organization.


 HIL (INDIA) LIMITED mainly focus on quality

 Being a large organization divided in to several department and all departments

working well

 It provide high quality goods

 HIL (INDIA) LIMITED is trying to utilizing its full capacity

 Management friendly trade unions.

 Well qualified and efficient workers

 Less promotional activities does

 Fast decision procedures

 Efficient utilization of financial resources.

 Proper planning

 Proper storage

 Efficient advertisement system

 Participatory management

 The company may prepare budget for each activity which will provide a better


 The company can be fully computerized to save time.

 Reduce wastage and over stocking.

 To improve the co- ordination between employees.

 Provide promotional activities to employees.

 To make effective decision making procedures.

 Proper advertisement should be there.

 Proper planning.

 Adequate advertisement should be there.


This organizational study provided useful insight about the company and its
functioning. The company has at most importance as it takes part in for
National Malaria Eradication Program launched by the government of India.
However the present condition is not favourable to pursue excellence. The
central as well as state government should give more attention and provide
necessary funds.
By conducting this study in HIL has helped me to understand the real process
involved in manufacturing industry.


 Kothari, C.R,(2004),Research Methodology, New Age International Private Limited

Publishers, New Delhi.

 Kotler, Philip,(2004),Marketing Management, Prentice-Hall of India Private Limited

Sarma, A.M,(2007),Industrial Relations, Mumbai .