CHAPTER 1

INTRODUCTION

1
 INTRODUCTION

Hindustan Organic Chemicals Limited (HOCL) was set up by the Government of India in
1960 with the objective of attaining self-reliance in basic organic chemicals needs. In fact this
was the first endeavor to indigenize manufacture of basic chemicals and to reduce country's
dependence on import of vital organic chemicals. HOC started as small chemical unit, has
acquired the status of a multiunit company with two fast growing units and one subsidiary
unit.

HOCL has two manufacturing units at Rasayani, Dist. Raigad in Maharashtra & at Kochi
Kerala. HOCL also has its subsidiary HFL manufacturing unit at Hyderabad in Andhra
Pradesh. The main products manufactured by HOCL are Phenol, Acetone and Hydrogen
peroxide. The raw materials used by HOCL are Benzene, LPG majority of which come from
petroleum refineries.

HOCL provides the basic organic Chemicals essential for industries like resins and laminates,
dyes and dyes intermediates, drugs and pharmaceutical, rubber chemicals, paints, pesticides
and other, touching virtually facet of everyday life.

It was expected that indigenous manufacture of these chemical intermediates will give impetus
to downstream industries resulting in setting up of chemical units and achieving self-
sufficiency for the country in this area. This objective of setting up HOC has been achieved
and at present more than 500 units based on HOC products have been set up all over the
country which have not only succeeded in meeting the goal of self-sufficiency but also entered
the international markets earning precious foreign exchange by exporting chemicals, dyes and
drugs.

The organizational study at HOCL, Kochi unit was to have an insight of major aspects related
to an industry. The study was also intended to understand the functioning of a company and
major challenges that would affect its smooth functioning. The focus was also in learning the
practicability of the theories that have been learned and the role of various departments in the
industry. Every organization requires people as the first preference and understanding the
work life of the people in the company was another area of study.

2
1.1 IMPORTANCE OF THE STUDY

The significance of the study is that it provides an opportunity to get practical knowledge
about the business. This study is very beneficial for understanding strengths, weakness,
opportunities and threats of the organization. It also helped to provide useful feedback to the
organization and to get the spot glimpse of activities of each department.

1.2 OBJECTIVES OF THE STUDY

The organizational study was carried out at HOCL to achieve the following objective:

 To understand the organizational framework and its functioning.

 To study the interdependence of different departments.

 To analyze the Performance, Key resources, Strengths and Weaknesses.

 To understand the role and responsibilities of key persons in the organization.

 To gain knowledge about different departments.

1.3 METHODOLOGY

The data collected from different sources. The main source of data is primary and secondary
data. Primary data are the data that is collected for the first time for the purpose of enquiry in
hand. Secondary data refers to the data which are taken from various books, journals and
websites.

1.3.1 Primary Data

Primary data is the information that is collected specifically for the purpose of the research needs. It is
collected by the investigator himself for the first and thus original in character. The sources from which
the primary data for this study were collected from personal & direct investigation, observations, local
correspondence.

1.3.2 Secondary Data

Secondary data refers to data that was collected by someone other than the user. An
investigator is said to make use of the data already compiled by some other person. The
secondary data used in this study are company records, data published in web sites.
3
1.4 LIMITATIONS OF THE STUDY

There were a few limitations in collecting the information during the course of the
organizational study which are as follows:

 The time available for the study was limited.

 Busy schedule of officers prevented lengthy discussions.

 Due to security reasons all enquires were not answered.

1.5 CHAPTERISATION

Chapter 1 Introduction – Actually talks about the importance of the study, the methodology
used, the limitation of the study and also about the various objectives of this particular study
conducted in HINDUSTAN ORANGIC CHEMICALS LIMITED,KOCHI.

Chapter 2 Industrial Profile – Actually talk about the various aspect related to the bronze
and metal industries. It also mention about the history of the industry.

Chapter 3 Company Profile – actually describe various aspects related to this particular
company which include the history of the company, the present scenario of the company and
also about the product and their profile.

Chapter 4 Organizational Structure – Displays the hierarchy through the structure and
various post included in the particular hierarchy of the company.

Chapter 5 Departmental Analysis- Talk about the 15 departments present in the company.
And also about the various functions of these particular departments.

Chapter 6 SWOT Analysis – Point out the Strengths, Weaknesses, Opportunities and
Threats of the company.

Chapter 7 Findings, Suggestions and Conclusion – Describe about the findings,

suggestions and conclusion which has been obtained after conducting the study in
HINDUSTAN ORGANIC CHEMICALS, KOCHI.

4
 CHAPTER 2

INDUSTRY PROFILE

5
INDUSTRY PROFILE

The chemical industry is the key contribution to the world economy. It is a knowledge-based
industry with significant investment in R&D. The industry supplies to virtually all sectors of
the economy and produces more than 80000 products. In terms of consumption, the chemical
industry is its own largest customer and accounts for approximately 33 per cent of the
consumption. Participation of largest multi- national companies in the world has brought
tremendous success in this industry.

The chemical Industry generally covers petrochemicals, agrochemicals, polymer and

paints. The raw materials include minerals deposits in regions such as potash, nitrates, sulphur,
coal, petroleum, and natural gases and petroleum by products. The important heavy chemicals
are sulphuric, hydrochloric, nitric, and acetic acids, chlorine and soda ash. Major heavy
chemicals producing countries are USA, UK, Japan and Germany. Countries such as USA,
West Germany, Spain, Britain, and South Korea are leading producers of petrochemicals.
Supply of potash fertilizers in the world largely relies upon USA, West and East Germany and
France. Largest international companies in the world dealing with Chemical Industry are ICI,
DuPont, Dow Chemicals, ExxonMobil chemicals, BP Chemicals, Shell Chemicals and
Monsanto.

2.1 MILESTONES IN THE INDUSTRY

The chemical industry comprises the companies that produce industrial chemicals. Central to
the modern world economy, it converts raw materials (oil, natural gas, air, water, metals, and
minerals) into more than 70,000 different products. Although chemicals were made and used
throughout history, the birth of the heavy chemical industry (production of chemicals in large
quantities for a variety of uses) coincided with the beginnings of the Industrial Revolution in
general. Chemical industry is one of the oldest industries in India, which contributes
significantly towards industrial and economic growth of the nation. Since this industry has
numerous forward and backward linkages, it is called the backbone of the industrial and
agricultural development of the country and provides building blocks for many downstream
industries.

The Chemical Industry of India ranks 6th in world and 3rd in Asia after Japan and China. In
terms of global shipments of chemicals, India ranks 10th in the world. The Chemical industry
6
provides valuable inputs for other industries such as textiles, paper, paints and varnishes,
leather etc., which are required in almost all walks of life. The Indian Chemical Industry has
small, medium as well as large scale units. The fiscal concessions granted to the small-scale
sector in mid eighties led to establishment of a large number of units in the Small Scale
Industries (SSI) sector. India enjoys an abundant supply of basic raw materials, however lags
behind in terms of technical and marketing capabilities.

2.2 WORLD SCENARIO

Though for many years, the western countries dominated the Global Chemical Industry, the
first chemicals operations which signify the birth of chemical industry took place in the Middle
East.

Long back in 7000 B.C some artisans from Middle East refined Alkali and Limestone and
prepared glass. After this, next were the Chinese people who invented a chemical explosive
named Black Powder. Then in 1965, some chemicals were produced for tanning in
Massachusetts. But all these were small ventures.

The first large scale chemical industry came into existence in the 19th century. In 1823,
production of soda Ash was started by a British Entrepreneur. But massive advancement in
organic Chemistry started in the last half of 19 th centuries. These advancements enabled the
chemical companies to produce synthesis dyes from coal tar. This was successfully done in
the 1850s.

In the 1890s, production of sulfuric Acid started in Germany. In the same period, chemical
industries were also producing caustic soda and chlorine. Then in the 1990s came two
revolutionary chemicals products. The first one was Rayon, introduction of which in 1914
changed the whole scenario of the textile industry. The second chemical product was synthetic
fertilizers which lead to Green Revolution in the agriculture sector.

Celluloid was invented in 1869 as a result of the advanced production of plastic by the
chemical companies. Then came products like Synthetic Rubber, Continuous research in
organic chemistry ultimately resulted in production of petrochemicals from oil in the 1920
and 1930s. In the present world this petrochemical industry constitutes the main portion of
chemical industry in many countries. Research and Development on chemicals products are

7
even going on today and almost each day the chemical companies are coming up with new
technology and new process.

2.3 INDIAN SCENARIO

Chemical Industry in India is one of the fastest growing industries under the Indian economy.
At the same time it is also one of the oldest domestic industries of India which started working
soon after Indians independence in 1947. From those early years, the chemical industry in
India continued to contribute to the economic growth of Indian economy. At present, the
industry accounts for almost 13% of Indian GDP. The chemical industry in India in India
which generates almost 13% of countries total export is growing at a rate anywhere between
10% and 12%. The chemicals industry in India is based on the idea of diversification. The
industry is a multi product and multi faceted one. Depending on these product categories we
can divide the chemical industry in India in following sectors.

Inorganic chemicals – In this sector the growth rate is near about 9% and the chemicals
produced in this sector are mainly used in alkalis, fertilizers, detergents and glass.

Drugs and Pharmaceuticals – This sector of Indian chemical industry holds the 4th place in
the world in terms of volume. Export led growth is the characteristics of this sector.

Plastic and Petrochemicals – This sector of the Indian Chemical Industry is the fastest
growing one among all the sectors. Reliance petrochemical is the company which dominates
this sector.

Pesticides, Fertilizers, and other Agro-chemical products –This sector of the chemical
industries in India account for almost 2.5% of the global market. It possesses an impressive
domestic market growth rate of 10%.

Specialty and Fine Chemicals like Dyes and Paints – This sector is characterized by high
level of fragmentation. The sector is involved in production of paints, dyes, inks, polymers
and a lot of other chemical products. This sector has a growth rate of near about 12%.

8
 CHAPTER 3

COMPANY PROFILE

9
 3.1 OVERVIEW OF THE ORGANIZATION

Hindustan Organic Chemicals Limited (HOCL) was set up by the government of India in 1960
with the registered office at Rasayani District in Maharashtra. It was established with the
objective of attaining self reliance in basic organic chemicals needs. In fact this was the first
endeavor to indigenous manufacture in basic chemicals and to reduce country’s dependence
on import of vital organic chemicals.

HOC, started as small chemical unit, has today acquired the status of a multiunit company
with two fast growing units and one subsidiary unit. It was expected that indigenous
manufacture of these chemical intermediate will give impetus to downstream industries
resulting in setting up of chemical units and achieving self sufficiency for the country in this
area. This objective of setting up HOC has been achieved and at present more than 500 units
based on HOCs products have been set up all over the country which have not only succeed
in meeting the goal of self sufficiency but also entered the international markets earning
precious foreign exchange by exporting chemicals, dyes and drugs. HOCL has two
manufacturing unit at Rasayani, Raigad district in Maharashtra and Kochi, Kerala. In the
1980s HOCL diversified its activities. Kochi has been identified as a growth centre due to the
availability of raw materials, manpower and other infrastructural facilities. As a result, the
phenol complex at Kochi came in to reality.

Hindustan Organic Chemicals Limited, Kochi is located in the Kochi industrial belt at
Ambalamugal close to BPCL (KRL). HOCL, Kochi was established in 1987 for the
production of phenol and acetone. In the year 1997, this unit started production of hydrogen
peroxide. HOCL, Kochi unit has been accredited with ISO 9001-2000 certificate for its
products of phenol, acetone and Hydrogen Peroxide. The unit has been accredited ISO 14001
certification in 1996.

HOCL is a recipient of various awards since its inception including system certification of
quality management and environment management. The technology for phenol and acetone is
based on UOP, USA which provides the state of art technology in a single package.

10
Vision

To produce and market basic chemicals efficiently and economically in an environment

friendly manner

Mission

To maintain optimum level of efficiency and productivity in the use of resources and secure
optimum return on investment.

Corporate Structure of the Organization [BOD, Organization Type]

NAME DESIGNATION

 Shri. S. B. Bhide : Chairman and Managing Director

 Shri Samir Kumar Biswas
 Prof.Ms. Pushpa Trivedi
 Ms. Meenakshi Gupta
 Mr. Mukesh Pareek
 Ms. Lata Alker
 Mr. P.O. Luise
 Mrs. Susheela S. Kulkarni
: Government (Nominee) Director
: Non-Official Independent Director
: Government (Nominee) Director
: Non-Official Independent Director
: Non-Official Independent Director
: Chief Financial Officer (CFO)
: Company Secretary

Objectives of the Company

 To maintain growth in turn over and to optimize return on investment.

 To maintain health of plant and equipment to realize all its objectives

 To ensure up gradation of technology and innovations of value added products

through R&D efforts.

 To maintain international quality standards and optimum level of efficiency.

 To practice customer friendly culture.

 To continue development of human resource efforts.

11
  To adhere to safety, health and environmental policy standards.

 Implementation of growth strategy.

In HOCL, Kochi the majority of collection from customers are received at the head office at
Mumbai and they will transfer the required funds to the SBI Bank in Ambalamedu. The
permissible bank overdraft limit of the company is one corer. Most of the sales are done on
credit basis. The credit policy of the company is operated depending upon the market situation
prevailing from time to time within the framework approved by the board. The credit period
allowed are phenol – 45 days, acetone – 30 days, Hydrogen Peroxide - 60 days. A 15% interest
is charged per month for daily payment and a 15% discount is provided for advance payment.
Promissory notes are usually used to avoid bad debts.

HOCL renders its payments in cheques. An advance payment is done for purchase of LPG
from BPCL (KRL). The rest of raw materials are purchased on credit basis with the credit
period varying for each material. BPCL (KRL) and also it is available from reliance industries.
Caustic Soda is purchased from BPCI and HPCL, Kochi. The major competitor of the
company is Schenectady Herdilla Limited Bombay. Some of the customers of HOCL are PH
Trading Limited, Kolkata and Shubham Chemicals and Solvents Limited, Delhi.

3.2 SAFETY, HEALTH & ENVIRONMENT

 HOCL, Kochi is committed, so far as reasonably practical to provide;

 A safe healthy and accident free working environment by adhering to safety rules and
regulations and through the active participation of the safety of the company.

 All possible preventive steps, precautions and protective measures against any
anticipated hazards.

 A responsible workforce, including contract labors, committed to safety through

training and retraining.

 All safety measures in the operating, maintenance procedures and in all process
technology changes.

12
3.3 COMPANY POLICIES

1. HRD Policy

To attract and retain competent personnel by providing a productive environment, opportunity

for growth and compensation comparable to industry practice. To build and nurture work
culture that focus on work entries, committed to productivity cost consciousness, commercial
orientation team work, dedication and to take pride in the company.

 To provide welfare facilities and amenities that will ensure highest standards of quality
at life both at work place and outside.

 To ensure high performance through ‘performance management system ’&

recognition of contribution.

 To provide opportunities for competence development on a continuous basis by

various HRD interventions such a job rotation, in house and external training
programs.

2. Quality Policy

It is the policy of HOCL, Cochin unit to operate the Quality Management System that will
fully meet the requirements of ISO 9001 – 2015

Their objective is to enhance customer’s satisfaction by providing consistent quality product

and to achieve continual improvement through business reviews and customers focus.

3. Environmental Policy

The policy of HOCL, Kochi units, is to operate an Environmental Management System to

meet the requirements of ISO 14001:2015.

We committed ourselves to:

 Operate all plans based on good process control system with continuous improvements
through review of the objectives and targets to minimize waste, prevent pollution and
conserve natural resources and energy.

 Comply with applicable legal and other requirements.

13
  Promote safety and better housekeeping at work place.

 Be environmentally responsible neighbors to the community.

 This policy is documented and communicates to all working for and on behalf of
organization and also made available to public.

4. Safety Policy

HOCL Cochin is committed so far as reasonably practical to provide:

 A safe, healthy and accident free working environment by adhering to safety rules and
regulations.

 All possible preventive steps, precautions and protective measures against any
anticipated hazards.

 All responsible workforces committed to safety.

 All safety measures in the operating and maintenance proceeding and in all process
technology changes.

5. Social Responsibility

The company from its inception is conscious about its social responsibility. To fulfill them
this, company is providing basic civic amenities to its neighbor villages, rendering assistance
to the neighborhood in different forms viz…financial assistance, building material, furniture
,computers, laboratory equipments to the neighboring schools, construction of roads,
toiletblocks, drinking water supply, medicines etc.

6. Statutory Obligations

 Kerala State pollution control board

 Petroleum and explosive safety organization – Government of India
 Panchayath license
 Excise department license
 Radiological safety license - Government Of India

14
  Employees provident fund – Government of India
 Employee state insurance – Government of India
 Income tax department – Government of India

7. Awards

 Productivity Award – 1989-90 onwards

 Pollution Control Award – 1988
 Industrial Safety Award – 1989
 National safety Award – 1994

3.4 PRODUCT PROFILE

1. Phenol

Phenol is a versatile industrial organic chemical. The largest end use of phenol is an phenol-
formaldehyde resins used in wood additives as well as moulding and laminating resins, paints,
varnishes and enamels. Phenol which is also referred to as Carbolic Acid or Monohydroxy
Benzene is used to produce a wide variety of chemical intermediates, including Phenolic
Resins, Bisphenol –A, Caprolactum, Alkyl Phenol, Adipic Acid, Plasticizers, etc... Phenol is
also used in the manufacture of preservatives, disinfectants, lubricating oils, herbicides,
insecticides, pharmaceuticals, etc.

2. Acetone

Acetone is an important commercial solvent and raw material with wide usage in the chemical
explosive and lacquer industry. It is commonly used as a solvent for Cellulose Acetate,
Nitrocellulose, Celluloid, Cellulose Ether, Chlorinated Rubber, various resins, fats and oils
and an absorbent for Acetylene Gas. It is being increasingly used in the synthesis of a number
of chemicals such as Diacetone Alcohol, Methacrylate and certain resins, pharmaceuticals and
perfumes.

15
3. Hydrogen Peroxide 50% W/W

Hydrogen Peroxide 50% w/w is an ecofriendly chemical product from HOC Kochi Unit with
wide application in Paper and Textile Industries for Bleaching purpose as a substitute for
hazardous chlorine. It is also used in Electronic and metallurgical industries, Effluent
Treatment plants, Sewage Treatment and for removal of Toxic Pollutants from Industrial Gas
Stream.

3.5 PRODUCT’S MAJOR APPLICATIONS

1. Phenol

 Phenol Formaldehyde Resin, Biphenyl- A, Pharmaceutical

2. Acetone

 Solvent, Pharmaceuticals, Biphenyl

3. Hydrogen Peroxide

 Bleaching, Environmental applications

16
 CHAPTER 4

ORGANIZATIONAL STRUCTURE

17
18
An organizational structure defines how activities such as task allocation, coordination and
supervision are directed toward the achievement of organizational aims. Organizations need
to be efficient, flexible, innovative and caring in order to achieve a sustainable competitive
advantage.

HOCL follows functional organization structure. It consists of 15 Departments headed by the

executive director and unit in charge. The 15 Departments in HOCL are Finance, Marketing,
Personnel & Administration, Production and so on. An organization can be structured in many
different ways, depending on its objectives. The structure of an organization will determine
the modes in which it operates and performs. Organizational structure allows the expressed
allocation of responsibilities for different functions and processes to different entities such as
the branch, department, workgroup, and individual. Organizational structure affects
organizational action in two ways:

 It provides the foundation on which standard operating procedures and routines rest.
 It determines which individuals get to participate in which decision-making processes,
and thus to what extent their views shape the organization’s actions

An organizational structure is a system that outlines how certain activities are directed in order
to achieve the goals of an organization. These activities can include rules, roles and
responsibilities. The organizational structure also determines how information flows from
level to level within the company.

19
 CHAPTER 5

DEPARTMENTAL ANALYSIS

20
HINDUSTAN ORGANIC CHEMICALS LIMITED, AMBALAMUGAL

Hindustan Organic Chemicals Limited (HOCL) is a Government of India owned company.

They deal with a variety of works related to the production of Phenol, Acetone, and
Hydrogen Peroxide and other by-products. For an easy analysis, co-ordination and
controlling of activities they have diverse their area of activities and have divided the
organization into different departments. This division is based on the nature of job/work.

Major Departments:

1. Personnel & Administration Department (HR)

2. Marketing Department
3. Finance Department
4. Materials Department
5. Production Department
6. Quality Control Department
7. Technical Services Department
8. Management Support System
9. Fire & Safety Department
10. Vigilance Department
11. Utilities Department
12. Mechanical Department
13. Civil Department
14. Electrical Department
15. Instrumentation Department

21
 5.1 PERSONNEL & ADMINISTRATION DEPARTMENT

Department Hierarchy

GENERAL
MANAGER (P&A)

GENERAL CHIEF DEPUTY GM DEPUTY GM

MANAGER MEDICAL (P&A) (P&A)
(P&A) OFFICER

OFFICER SR. OFFICER ADMINISTR

(NURSING) ATIVE
OFFICER

MANAGER MANAGER SR. OFFICER

OFFICER
OFFICER OFFICER
(ADMIN) (ADMIN)

The Personnel and administration department of HOCL is in charge of several functions

being carried out within the organization like:

 Recruitment / promotion

 Security management

 Time office

 Public relations

 Social welfare

 Employee welfare

22
  Medical expenses / Insurance

 Front office Management

 Performance Management

 Records Management

 ISO Implementation

 Official Language Implementation

 Training and Development

 Occupational Health Center

Time Office

 The organization runs under shift basis, and there are basically 3 shifts :

 Shift 1 – 12am to 8am

 Shift 2 – 8am to 4pm

 Shift 3 – 4pm to 12am

 Allowances to the employees are given according to their shifts.

 Other timings are :

 G1 (General Shift) – 8am to 4pm

 G2 (Office timing) – 9:30am to 5pm

 G3 (General Shift) – 9am to 5pm

 Half an hour break for lunch is given

Rotational Shift

 Midnight Shift - 12.00 am to 8.00 am

23
  Day Shift - 8.00 am to 4.00 pm

 Evening Shift - 4.00 pm to 12.00 pm

Occupational Health Center

In an organization like HOCL which manufactures chemicals, a department for occupational

health center is a statutory requirement. This is being run 24 hours. When a new employee
joins the organization, a detailed examination is being done in order to check if the employee
is fit to work in the organization’s environment. Occupational health centers are a compulsory
in hazardous industries as chances for accidents are more in them.

 A detailed check up is done for every employee of the organization once in every year
to check if the employee is being affected due to the chemicals being produced. And
to those employees dealing with Benzene, check up is done once in every 6 months.

 The total number of people in this department is 6 where 1 is the Doctor and 5 nurses.

 The statutory records regarding the employees are being maintained.

 If in case of accidents, the basic first aid is being provided to the worker which includes
mainly eye and body wash for chemical spills.

 When any critical case arises, the patient is shifted to nearby hospital.

ESTABLISHMENT MATTERS

a) Recruitment

Vacancies are advertised in major newspapers or notified to the employment exchange

according to compulsory notification of vacancies employment exchange Act 1961
appointments are purely based on merits.

b) Selection

The selection test consists of test. Weightage on a scientific basis is given for educational
qualification, experience, attitude, personality, communication skill and physical fitness.

24
c) Promotion

Promotion is based on merit cum seniority. There is a promotion policy for workers.

d) Transfers

All workmen are liable to be transferred in the exigencies of work from one departments or
section to another or one job to another, from one project to another or from one
establishment to another provided that by reasons of such transfer the wage and other
conditions of service of the workman are not altered.

e) Annual Performance Appraisal System

Separate appraisal is made to officers and non – officers. For non officers their immediate
seniors will appraise them and for the officers their immediate senior will appraise them.
Generally performance appraisal is done annually and based on that they will give promotion
and other incentive to employees. The reporting officer must be one grade higher than the
officer being assessed and they should have firsthand knowledge of him and his work.
Performance appraisal should not be made based on previous years records.

f) Payment of Wages

Wages and paid on the working day on the month. If for any reason, the payment is to be
done only any other day it is duly notified. Wages are either paid in cash or certified to the
bank account of the employees. Apart from statutory deductions all other deductions from
wages requires prior authorization to payroll sections.

g) Payroll and Allowance

The salary structure is subject to revision normally in a period of 5 years. Various

allowances are also paid in order to meet the increased cost of leave, nature of duty, place
of work etc.

 Dearness Allowance (DA)

 House Rent Allowance (HRA)

 Shift Allowance

25
  Daily Allowance

 Children Education Allowance

 Production Incentive Scheme

 Safety Incentive Scheme

 Material Incentive Scheme

h) Terminal Benefits

 Provident Fund (PF) – 12% of Salary

 Gratuity

Training and Development

Training and development: The respective head of the departments once in 2 years identifies
the training needs for the employees. Based on this a calendar is prepared. The training need
is identified only for those whose work affect the product quality and those whose work create
significant impact on environment. Training is imparted mainly in 3 areas technical,
behavioral, and safety aspects. The company organizes regular training programmed with the
assistance of internal and external faculty members. Various programmers on functional areas
are conducted to keep the employees up to date with the latest development in the field.

Welfare and Administration

There is something which an employee is always looking for HOCL has a lot of welfare
measures to their employees. They are-

 Medical facility

 Group personal accident scheme

 Employee education

 Group saving linked insurance scheme

 Schooling for employee’s children and merit scholarship

26
  Company housing and canteen

 Co-operative credit policy

 Nutrition scheme

 Uniform, safety shoes and helmet

 Long service awards

Industrial Relations

HOCL endorses good industrial relations. The management uses all the possible ways to
make the workers motivated and loyal to the company. The company follows an open door
policy in handling grievances. The worker can got at any time and talk to any officer on
work related matters. There is not much discretion between manager and workers. The
vertical and horizontal communication is good. The company has three trade unions.

 HOC Workers Union (CITU)

 HOC Staff and Workers Union (INTUC)

Public Relations

There is a public relation officer in HOCL who look after the social welfare activities
and donation.

Attendance Recording

HOCL applies biometric thumb impression system

Leave management of employees

The different type of leave are:

 Casual leave

 Earned leave

 Medical leave

 Special casual leave for academics, blood donation etc..

27
  Maternity leave

 Compensatory off

Security Section

The department has security officers, 16 guards, 4 supervisors and 1 lady searcher. Their
functions –

 To protect the company’s property and premises from theft and other similar type of
incidents.

 To give an overall protection and security

5.2 MARKETING DEPARTMENT

Department Hierarchy
CHIEF
GENERAL
MANAGER
(MARKETING)

GENERAL
MANAGER

DEPUTY GM DEPUTY GM

CHIEF DEPUTY
MANAGER MANAGER

SR. OFFICER

28
Marketing Strategy

HOCL is the jaunt in the chemical industry. So marketing strategy are fixes by the company
industry. So it has an up hand in the market of chemical industry. The marketing strategies for
different products are as follows:

Demand Forecasting

The company is generally following short-term demand forecasting for a period of three to six
months. The demand forecasting is based on the following.

 To study the present market

 To study the competitive strategy

Customer Satisfaction

To company ensures customers satisfaction on receiving feedback from the questionnaires

that is sent to all its customers.

Pricing Strategy

The pricing strategy of the company mainly depends on the availability of raw materials
present market condition and also competitor’s strategy.

Credit Policy

The management decides the credit policy most of the sales are on credit basis. Receipts are
through cheque and demand draft.

Ways of Marketing

The company is marketing their products directly to customers without any intermediaries.
The company is provided quality linked discount. Quality linked is nothing but a trade
discount allowed to customer for buying such a big or bulk quantity of products.

Sale of Products

Purchase orders are placed by customers, delivery orders are issued by the marketing
department. Based on the delivery orders loading advice is issued, filled the material in tanker

29
Lorries, weighment of material and issue of delivery challan cum invoices by the finished
product section of the materials department. According of the dispatches, receipts from the
customers etc.. Are done by the sales section of finance department.

Branch Offices of Marketing

 Cochin

 Baroda

 Delhi

 Rasayani

Competitor HOCL

 Schenectady Herdilla Ltd. Mumbai

Customers of HOCL

Product- Phenol

 Alta Chemicals, Mumbai

 IVP Chemicals, Mumbai

 PL trading, Calcutta

 Subhani & Solvents, Delhi

 Gujarat State Fertilizers and Chemicals, Baroda

Product – Acetone

 Kesar

 Pioneer solvents and chemicals

 Surface coating industries, Chennai

 Dr. Reddy’s, Hyderabad

30
  Aurobindopharma , Hyderabad

Product – H 2 O2

 HNL, Kottayam

 Tamil Nadu Newsprint

5.3 MATERIALS DEPARTMENT

Department Hierarchy
CHIEF
GENERAL
MANAGER
(MATERIALS)

CHIEF MANAGER

CHIEF ENGINEER (CO-

ORDINATION)

DEPUTY DEPUTY
MANAGER MANAGER

ASST.
MANAGER

SR. OFFICER

SR. OFFICER

OFFICER OFFICER

31
FUNCTIONS OF THE DEPARTMENT

Materials department shall ensure that the purchased product/service conforms to specified
purchase requirements and the purchase followed is as per the guidelines given in purchase
policy of HOCL. Suppliers/transport contractors shall be selected and evaluated on their
ability to supply products/transport materials as per HOCL requirements. Performance of
suppliers shall also be re-evaluated periodically. The materials department is responsible for
the following things.

 Day to day procurement of raw materials to the industry, packing materials, fuel,
chemicals and catalyst and electrical. Responsible for executing contracts with
transports/firms for all activities related to raw material transportation and storage.

 Recoupment of stock item, arranging inspection of materials, taking on stock, issues,

maintenance of record, material preservation, identification and traceability of
materials and scrap disposal.
 Procurement of civil engineering items, Q.C., printing & stationary & other
miscellaneous items.
 Emergency purchase to procure the materials.

Responsibilities of Materials Departments

 Items which are regularly consumed by more than one department or which are
specifically regulated by user department are tested under stock items. Purchase
requisition for stock items are generated by stores and forwarded to purchase. Purchase
requisition for non stock items are generated by the user department and forwarded to
purchase.

 PR for non stock items except in case with administrative approval are put up to
inventory control cell (ICC) through store. PR with administrative approvals are
processed directly. ICC scrutinizes the PRR and either forwards to purchase with
recommendations after getting clarifications if any from user departments or rejects
and returns the PR to the user department.

 Supplier selection / Evaluation process

 Proprietary / standardized list

32
  Raw materials / packing materials transportation service.

 Engineering spares and systems.

Emergency Purchases

PR for emergency purchase is prepared by the user department and submitted to purchase after
obtaining GM’s approval. Emergency action is taken by purchase to procure the materials.

Cash Purchases

Materials of value is not exceeding the cash purchase limit as applicable from time to time ,
are procured from local suppliers. PR for cash purchase is generated by the user department
and forward to stores. Procured materials are inspected by the user department and collect
from stores after endorsing on the cash purchase requisition.

Objectives

Materials department shall ensure that the purchased product / service confirms to specified
purchase requirements and the purchase procedure followed is as per the guidelines given in
purchase policy of HOCL

Scope

This procedure pertains to the purchase of raw materials, packing materials, chemicals,
engineering spares, and safety items and transportation service. It covers normal, emergency,
cash, proprietary and standardized purchase.

Raw Materials

 LPG

 Benzene

 LSFO (Low Sulphur Furnaces Oil)

33
 5.4 FINANCE DEPARTMENT

Department Hierarchy

DEPUTY GENERAL
MANAGER (FINANCE)

DEPUTY GENERAL
MANAGER

CHIEF MANAGER

DEPUTY MANAGER

ASSISTANT MANAGER

SENIOR ACCOUNTS
OFFICER

SENIOR OFFICER
(STOCK)

ACC. OFFICER ACC. OFFICER

OFFICER (ADMIN)

34
MAIN FUNCTIONS

 Preparation of final accounts

 Giving finance to materials department for purchase of raw materials and other items.

 Budget preparation

 Dealing with sale tax matters

 Payment of bill expenses

 Dealing with establishment and provident fund matters of employees

 Project / work payment and security

 Payments of wages and salary

 Accounting central excise transaction

 Payment of insurance and other miscellaneous payment

 Preparation of tax report

Capital Structure

Up to March 1992 government was holding 100% share. But in 1994 government disinvested
in favor of mutual fund for banks and reduced its holding to 80% and further to 58.61%. Since
government holds more than 50% it is a government company. The investor’s mutual fund,
policy and institutional investors.

Dividend Policy

The company has listed in both BSE and NSE. Even though HOCL Cochin unit is working in
a good position the company has not provided any dividend or bonus for last 10 years, because
the corporate office Rasayani is working in a huge loss. For the past 10 years the profit from
Cochin unit has been transferred to Rasayani unit.

35
DIFFERENT SECTIONS OF FINANCE DEPARTMENT

Final Accounts & Costing

Consolidation of accounts of different sections of finance divisions. Coordinates with internal

auditor’s statues auditors, stock auditors and government auditors. Preparation of month MIS
reports, quality reports and other statutory reports, preparation of budgets, monthly cost sheet
and annul cost sheets, opening tenders, scrutiny and concurrence of all proposals relating to
raw materials, stores and process works attending committee meeting, concurrence of files
etc.

Sales Accounting

Accounting of sales of finished products such as phenol, acetone. Accounting of receipts from
customers, issues of credit notes and debit notes etc… preparation of various reports like
customer wise report, customer balance, customer ledger etc...And send to various marketing
offices. Preparation of monthly and yearly sales tax return based on input tax and output tax,
submission of audited accounts to sales tax, collection and submission of various statutory
forms and correspondence with sales tax office.

Establishment

Payment of salary to employees based on all the earnings and deductions applicable to them.
Payment and accounting of loans, advances, reimbursement etc.. To employees. Computation
of income tax on salary income after considering all the earnings, deductions, etc.. submission
of PF trust accounts (for employees), accounting and remittance of PF, contribution of
contract employee with EPF commissioner, submission of monthly and yearly return to the
EPF commissioner.

Stores Accounting, Insurance

Payment and accounting of raw materials, stores and spares etc... Insurance and misc payment
such as telephone, tax hire charges contain guest house.

Projects/ Works Central Issue:

Payment and accounting of works bill deduction of income tax, ESI, works contract tax etc..
And filing of returns with the concerned officers. Remittance and accounting after considering
36
the CENVAT credit applicable submission of returns, correspondence with control excise
offices, co- ordinate with auditors etc.

Sales of Products

Purchase creditors are placed by the customers, delivery creditors are issued by marketing
department based on delivery orders loading advice is issued, filled the material in tanker
lorries, issue of excise cum tax invoices by the finished product section of the materials
department. Accounting of the dispatches, receipts from the customer etc... Are done by the
sales section of finance department. Major customers of phenol are PH traders LTD., Mumbai,
Gargihuttons Mumbai, Alta laboratories Mumbai etc.. major customers of acetone are pioneer
chemicals Mumbai, paras dyes Delhi, super chemical Mumbai, GSFC Gujarat etc.

5.5 QUALITY CONTROL DEPARTMENT

Department Hierarchy

CHIEF
GENERAL
MANAGER (QC)

GENERAL
MANAGER (QC)

DEPUTY
GENERAL
MANAGER

DEPUTY DEPUTY DEPUTY DEPUTY

MANAGER MANAGER MANAGER MANAGER

CHEMIST CHEMIST CHEMIST CHEMIST

37
The Quality Control Department within the organization helps in maintaining the quality
required by the consumers. It has got full fledged quality control laboratories separately for
Phenol, Acetone and Hydrogen Peroxide are available. To make sure that the final product is
of the assured quality, control measures are taken at every stage of manufacture which includes
testing of raw materials, process samples and product tanagers from where the dispatches are
made.
In line with its commitment to Quality, HOC Kochi Unit implemented ISO 9001/2015
(Quality Management System) and ISO 14001(Environmental Management Certification)
systems. This is to ensure customer satisfaction and to improve upon existing good customer
relationship.
QUALITY MEASURES:

 Certificate of Analysis (COA) and Sealed sample of the product is provided with all
product dispatches in Tankers. For drum dispatches, COA is provided on request.

 Specifications of our products viz. Phenol, Acetone and Hydrogen Peroxide (H2O2)
and test methods are available on request from QC Department of HOC, Kochi Unit.

 Analytical training support in our QC Lab is provided free of charges to our

customers on request.

 Customer complaints/suggestions for improvement if any regarding Quality of our

products may be addressed to different officers in charge of the respective locations.

Objectives

To establish document, implement and maintain a quality management system in quality

control department and continually improve its effectiveness in accordance with the
requirement of ISO 9001: 2015.

Functions

The functions of the quality control department are as follows:

1. Raw Materials Testing

The quality of raw materials like LPG, Benzene and Low Furnace Oil are tested and checked
to meet the specifications mentioned.
38
 2. Process Control

The inter phase functions of Quality Control Departments are:

 Process sample from plants are collected as per schedules, tested and results forwarded
to production departments for effective process control.

 Raw materials procured by material department indigenously and imported are

sampled, tested and certified before unloading into main storage tanks and copies of
test reports are forwarded to materials and production department.

 Assistance is provided to marketing department in maintaining good customer

relations in matters related to product quality and customer complaints.

 A consolidated report of weekly analysis of effluent water and the analysis report of
stacks and ambient air are forwarded to technical services once in a month for
submitting to pollution control board.

 Water samples from boiler and cooling towers are collected, tested and reported daily
to mechanical department.

3. Water Testing

The various types of water testing are:

 Raw water testing

 Boiler water testing

 Cooling water testing

 Dematerialized water testing

 Effluent water testing

39
 5.6 PRODUCTION DEPARTMENT

Department Hierarchy
CHIEF GENERAL
MANAGER (PRODUCTION)

GENERAL MANAGER (P)

D .GENERAL D. GENERAL D. GENERAL D. GENERAL

MANAGER (P) MANAGER (P) MANAGER (P) MANAGER (P)

MANAGER (P) MANAGER (P)

DEPUTY DEPUTY DEPUTY

MANAGER (P) MANAGER (P) MANAGER (P)

ASST. ASST. ASST.

MANAGER 2 MANAGER 2 MANAGER 3

SR. SR. SR. SR.

PRODUCTION PRODUCTION PRODUCTION PRODUCTION
ENGINEER ENGINEER ENGINEER ENGINEER

PRODUCTION PRODUCTION PRODUCTION PRODUCTION

ENGINEER 2 ENGINEER 2 ENGINEER 2 ENGINEER 2

OFFICER (CO-
ORDINATION)

40
Production department looks after the production items of the plant, mainly the products
produced in the HOC are Phenol, Acetone and Hydrogen Peroxide. The byproducts obtained
are also managed by this department; this includes the Cumene heaviness and cumox oil which
are obtained during the fractionation.

Phenol: It is a versatile industrial organic Chemical. The largest end use of Phenol is in
Phenol-formaldehyde resins used in wood additives as well as molding and laminating resins,
paints, varnishes and enamels. Phenol which is also referred to as Carbolic Acid or
Monohydroxy Benzene is used to produce a wide variety of chemical intermediates, including
Phenolic Resins, Bisphenol-A, Caprolactum, Alkyl Phenols, Adipic Acid, Plasticizers, etc.
Phenol is also used in the manufacture of preservatives, disinfectants, lubricating oils,
herbicides, insecticides, pharmaceuticals, etc.

Acetone: It is an important commercial solvent and raw material with wide usage in the
chemical explosives and lacquer industry. It is commonly used as a solvent for Cellulose
Acetate, Nitrocellulose, Celluloid, Cellulose Ether, chlorinated Rubber, various resins, fats
and oils and an absorbent for Acetylene Gas. It is being increasingly used in the synthesis of
a number of chemicals such as Diacetone Alcohol, Methyl Methacrylate and certain resins,
pharmaceuticals and perfumes.

Hydrogen Peroxide: Hydrogen Peroxide 50% w/w is an ecofriendly chemical product from
HOC Kochi Unit with wide application in Paper and Textile Industries for Bleaching purpose
as a substitute for hazardous Chlorine. It is also used in Electronic and metallurgical industries,
Effluent Treatment Plants, Sewage Treatment and for removal of Toxic Pollutants from
Industrial Gas Streams.
Effluent Treatment Plant: The effluent from different plants is collected in equalization tanks.
The combined effluent is then treated by physical, chemical and biological methods. The
treated effluent conforming to the norms specified by Kerala State Pollution Control Board is
only let out from the factory.
HOC produces 1 ton of Phenol and 0.6 ton of Acetol. The Phenol and Acetol are joint product
which means that these are produced together. The Hydrogen Peroxide is produced at 50%

41
concentration. The storing of the chemicals is done mainly through the SS (Stainless Steel)
barrels.
AREAS UNDER PRODUCTION DEPARTMENT:

1. PRU (Propylene Recovery Unit)

2. Cumene Unit

3. Synthesis & Fractionation (Phenol & Acetone) Unit

4. Hot oil, ETP (Effluent Treatment Plant)

Capacity of the Plant:

Phenol 40,000 TPA

Acetone 24,640 TPA

Hydrogen Peroxide 5,225 TPA (35% concentration), 10,450 TPA (50% concentration)

The DCS (Distributed Controlled System) is controlled by the production department.

There are about 92 employees are working under the department including officers and
Workers.
Functions
 To produce the product according to the specifications of customers.
 Try to maintain the quantity and quality of the product.
 To assist the material department for purchasing raw materials and place requisition to
them regarding purchasing of raw materials.
 To help the marketing department for selling the product.
 To help the material department for packing the product.
 Try to reduce the wastage of products and increase the productivity.
 To check the plants periodically in order to ensure efficient of the plant.
Various Reports
The production department keeps in track of various records like:
 Daily production report
 Plant performance report
 Daily attendance of employees in the department
42
 5.6.1 Production Process

Phenol Plant Block Diagram

Kochi Refineries Ltd (KRL)

Process Description

a. Phenol Plant

Phenol Complex consists of the following units

 Propylene Recovery Unit
The plant is designed by Engineers India Limited to produce two grades of propylene Viz. Lean
propylene of 75% purity suitable for the production of Cumene and Chemical grade propylene of
95% purity.

Capacity of the Plant

LeanPropylene(75%propylene):21840TPA
Chemical grade (95% propylene): 7160 TPA

The process scheme consists of two fractionation columns with the auxiliaries and equipment for
the removal of COS (Carbonyl sulphide) as H2S from the hydrocarbon. The first fractionators act
as C3-C4 splitter producing 75% propylene as top product. The second fractionators functions as

43
 C3-C3 splitter producing 95% propylene as top product. Propylene from C3-C4 splitter is treated
in Caustic/MEA and water washing system to remove the sulphur.

 Cumene Unit
This unit is based on UOP’s Catalytic Condensation process. This processing technique utilises
a solid phosphoric acid (SPA) catalyst to promote the alkylation of benzene with propylene to
yield high purity Cumene (isopropyl benzene).

The overall process flow scheme consists of combining benzene with a propane – propylene
mixture at select ratio prior to the reaction zone for insurance of maximum product quality and
yield. This mixture is then heated and routed to the reaction zone, where the alkylation takes
place over a solid phosphoric acid catalyst. The reaction zone effluent then passes through a
series of fractionation columns for the rejection of non-reactants; recycle of the unreacted
benzene and for the separation of the desired Cumene product from the heavier alkylated
product.

 Phenol Unit
This unit is based on UOP’s CUMOX process, which is a commercially established Cumene
per oxidation process for the economic and efficient production of phenol and acetone.

Capacity Of The Plant

Phenol:40,000TPA
Acetone :24,640 TPA

The CUMOX unit has been divided into the following process section

Oxidation Section

This is the first step of synthesis employing the low temperature liquid phase oxidation of
Cumene to Cumene hydro peroxide (CHP) in the oxidizers. Oxygen is derived from air and
the reaction is carried out in an alkaline environment. The oxidation is a highly exothermic
reaction.

44
 Phenol:40,000TPA
Acetone :24,640 TPA

 Evaporation Section

In this section, CHP is concentrated in two steps from approximately 25-wt % to 80-wt%.

 Cleavage Section

Concentrated CHP from the evaporation section is fed into two parallel cleavage reactor
circuits along with concentrated sulphuric acid catalyst. Under controlled condition of
temperature and acidity, CHP is cleaved to phenol and acetone and by-products.

 Direct Neutralisation & Effluent Treatment Section

This section perform four main functions:

i) Neutralisation of the acid used as catalyst in the cleavage section.

ii) Washing of salts from the organic phase, these results from the neutralization.
iii) Recovery of phenol and acetone from several effluent streams.
iv) Springing of phenol recovered as sodium phenate from the effluent streams.

Fractionation section

This section mainly consists of six columns to separate and purify phenol and acetone and to
recover Cumene and AlphaMethylStyrene (AMS).

Hydrogenation Section

The AlphaMethylStyrene (AMS) is hydrogenated back to Cumene. The reaction is carried

out over a fixed bed of catalyst.

45
b. Hydrogen Peroxide Plant

This plant is based on UHDE’s Ethyl Anthraquione process .2-Ethyl Anthraquione (2-EAQ)
the effective reactive component is dissolved in mixture of solvent called working solution.
It is reduced by hydrogenation using palladium catalyst in the first step and further oxidized
to generate Hydrogen peroxide and spring back 2-EAQ.

The hydrogen peroxide generated is extracted from the working solution using demineralised
water. The working solution is recycled back to the hydrogenate and the above - mentioned
reactions are carried out repeatedly.

The weak hydrogen peroxide (35% concentration) is subjected to vacuum distillation to

increase the strength to 50% or 70% as per the requirement.

5.6.2 H2O2 Plant Process Block Diagram

46
A small portion of working solution prior to hydrogenation is subjected to chemical treatment
to remove or control the accumulation of side reacted products.
The process flow diagram for hydrogen peroxide plant is enclosed as figure.2

5.7 TECHNICAL SUPPORT SYSTEM

Department Hierarchy

CGM (TSS)

GM (ENVIRONMENT
CONTROL)

ASST.
MANAGER

The department looks after environmental control activities. The environmental safety
department’s commitment to safe and clean operations is in line with the corporate strategy of
the company. The company is ISO 14001 certified for maintaining high environment
standards. The cochi unit and the Rasayani unit had won the national safety award under
scheme II and the energy conservation award respectively.

Deputy General Manager (DGM)

 DGM does overseeing and monitoring of the performance of the effluent treatment
plant, coordination with production department, engineering department, and P&A
47
  Departments for legal requirements.

 DGM coordinates with Kerala states pollution control board for statutory
requirements including environmental safety aspects. He reports to HOD (TSS).

MAJOR FUNCTIONS

 Forming liaison with the statutory control bodies for environmental control activities.

 Monitoring of environmental control activities include effluent, stack etc..

 Find trouble shooting and advice to the concerned department on technical matters.

 Sending statutory reports to Kerala State Pollution Control Board and Ministry of
Environmental and Forestry.

 It advises suggest and assists the production department in minor and major projects.

 It also gives suggestions on plant modification, operation and design.

Environmental Activities

Water process effluent, washing effluent, utility effluents

Environmental Monitoring Facilities

 HOC quality control is furnished with most modern instruments and facilities for
analysis of emissions, effluents and solid waste.

 On line PH analyzer in the pipes.

 On line oxygen analyzers are provided on the hot oil and boiler stack.

Environment Management System (EMS)

It is related to management and framing of environment policies.

In environment policy implementation several factors like pollution prevention, complying

with legal requirements, continual improvement is considered. It adopts PDCA (plan, do,
check, and act) system in implementation of environmental policy.

48
There is regulatory authority, bureau verities which conducts a surveillance audit once in 6
months and if not satisfied issues a non-conformity certificate. On conducting 5 such
surveillance audit re certification is said to be done. Thus re certification audit takes place
once in 3 year

5.8 MANAGEMENT SUPPORT SYSTEM

Department Hierarchy
CHIEF GENERAL
MANAGER

DEPUTY MANAGER

ASST. MANAGER

Objectives

 Preparation of MIS

 Purchase and installation of various hardware and software maintenance.

 Hardware and software maintenance.

 Network administration.

FUNCTIONS

Industrial Engineering

 Manpower planning

 Management information

 Project monitoring

49
  Efficiency improvement studies

System

 Software development

 Hardware and software maintenance

 Hardware and software procurement

 Data security and communication.

 Networking

 Broad band facility.

 ERP implementation.

Operating System used by the Server

 UNIX

 LINUX

 WINDOWS NT$ 40

 WINDOWS 2007 server

Software Packages

 Pay roll system

 Personal system

 Attendance system

Platform of Software Design

 Power builder

50
  Developer 2000

 Oracle RDB

5.9 FIRE AND SAFETY DEPARTMENT

Department Hierarchy

CHIEF GENERAL
MANAGER (F&S)

GENERAL
MANAGER (F&S)

DEPUTY DEPUTY
MANAGER MANAGER

Hindustan Organic Chemicals Limited is a chemical manufacturing organization which comes

under the Major Accidents Hazards (MAH). MAH means a hazard that has the potential to
cause a major accident which may involve loss of life, injuries, release of toxic chemicals or
spilling of hazardous chemicals resulting in ‘on site’ or ’off-site’ emergencies or damage to
equipment leading to stoppage of process or adverse effects to the environment. And therefore
acquiring training from this department is a mandatory. HOCL provides all preventive steps,
precautions and protective measures against any anticipated hazards. It includes responsible
workforce, including contract laborers, committed to safety through training and retraining.

 The major emergency alerts in the organization are with regard to fire and gas leakage.

 If in case any emergency breaks out within the organization, the next step after hearing
the emergency alarm is to assemble in the assembly points of the organization.

 The fire station numbers are 222, 333, and 444. The exclusively emergency number is
333.

51
  Every Monday the department puts on the emergency alarm at sharp 1pm for a minute
in order to check the proper functioning of the alarms.

FIREFIGHTING /PROTECTION FACILITIES:

Fixed installations

 Underground ring main wet pressurized fire hydrant system

 Foam protection, sprinklers, automatic deluge systems

 Fire hydrants, Monitors, aqua foam monitors, protect sprays, Escape hydrants.

Mobile equipment’s

 Fire tenders super jet trailer mounted aqua foam monitor units, Trailer mounted DCP
units, Trailer mounted foam monitors, various types of fire extinguishers, Foam
flooding units, Foam generation etc.

Early warning systems

 Hydrocarbon leak detection

 Smoke detection

 Thermal detection

Communication systems

 Public Addressing systems

 Wireless communications

 Wired communications

 Fire call points

 Automatic alarm systems

Services Offered

 In house training

52
  Training, consultancy, Technical advices, Investigation, Design and installation of fire
protection, firefighting aids to external agencies on demand.

PERSONAL PROTECTION EQUIPMENT’S

a. Head Protection

 A Safety helmet is provided against flying object and hard solid substances. It is one of
the strict rules in the company that every employees should wear helmet while entering
in to the plant.

b. Eye Protection

 There are different kinds of hazards to the eyes in the work place. They are mechanical
hazards and thermal and radiation hazards.

 Mechanical hazards like machining, grinding, chipping, cutting, handling molten

metal’s is great risk of dust chips sparks.

 Chemical hazards like handling chemicals in laboratories and factories pose the treat of
chemical splashes, fumes, and burns.

 Thermal and radiation hazards such as heat, glare, ultraviolet rays and infra- red rays.

 In HOCL eye protection equipment should be provided and it must be used.

c. Ear Protection

 Exposure to loud noise like fire crackers causes hearing loss. It causes accidents in the
work place when people can’t hear instructions and warning signals. Company
provides caps and earmuffs that cover the external ear.

d. Leg Protection

 There are two types of hazards. Direct hazards and indirect hazards cause injury
directly to the leg. Indirect hazards result from environmental factors. Company
provides footwear for the employees especially the employees who working in the
plant.

e. Safety Policy
53
  A safe, healthy and accident free working environment by adhering to safety rules and
regulations.

 All possible preventive steps, and protective measures against any anticipated hazards.

 A responsible work force committed to safety

 All safety measures in the operating, maintenance and technology

5.10 CIVIL DEPARTMENT

Department Hierarchy

CHIEF GENERAL MANAGER

(PRODUCTION &
ENGINEERING)

CHIEF GENERAL MANAGER

(ELECTRICAL & CIVIL)

MANAGER

SENIOR ENGINEER

SENIOR OFFICER

The Civil department looks after all the construction and civil maintenance work within the
factory and the township. Not only regarding the infrastructure but also the control of water
supply is also being done by this department. This department is in charge of all the repair
54
works, water disposal, road maintenance, structural stability, drain cleaning, rooftop cleaning
etc.

5.11 ELECTRICAL DEPARTMENT

Department Hierarchy
CHIEF GENERAL MANAGER
(PRODUCTION & ENGINEERING)

CHIEF GENERAL MANAGER

(ELECTRICAL & CIVIL)

DEPUTY GENERAL DEPUTY GENERAL

MANAGER MANAGER

CHIEF ENGINEER

MANAGER MANAGER

ASST. MANAGER ASST. MANAGER

ENGINEER ENGINEER
ENGINEER

This Electrical department is one among the engineering departments. The KSEB provides
the input electricity which is divided to different sections of the plant. The division of
electricity is done because the plant requires different amount of electricity for running the
machines. If a failure in the power supply is occurred then the plant can run by the usage of
CPP plant which consists of two large generators. The department covers all the electrical
55
related works and its maintenance. The CPP (Capacity Power Plant), MRS (Main Receiving
Station), Plant section, Hydrogen Peroxide Plant and Utilities are looked after by this
department.
The MRS is receiving 66KV, which contains different switch yards used to distribute the
power to different sections of the plant.
The CPP contains two generators which can produce 5MV and 6.6KV each.
The employee’s works in shift operation in the CPP analysis. One technician allocated to each
sections assisted by a workmen. Similarly, for MRS, are having one engineer and one
technician.

Currently the department consists of:

Electrical engineers -8
Technicians -14
Gen. Workmen -3

Electricity bill for the plant at full load can reach up to 3 cores per annum. The maintenance
of the electrical area can cost around 25lakh per annum and for repair 1core.

Objectives
 Receive supply from KSEB and distribute, generate
 Normal supply to motors/ lighting etc…
 Emergency supply to critical motors.
 UPS supply to critical values / instruments.
 Captive power plant / standby supply.

FUNCTIONS
 It monitors and provides regular preventive maintenance to the various motors,
transformers, UPS and battery charges.
 It prepares a schedule one in six months in advance to plan its machine maintenance.

56
 5.12 MECHANICAL DEPARTMENT

Departmental Hierarchy

CHIEF GENERAL MANAGER

(PRODUCTION &
ENGINEERING)

GENERAL MANAGER
(MECHANICAL)

GENERAL DEP. GENERAL

MANAGER (M) MANAGER (UTY)

CHIEF CHIEF
ENGINEER ENGINEER

MANAGER DEPUTY
MANAGER

ENGINEER ENGINEER

OFFICER

The mechanical department is mainly focusing on the temp, pressure and maintenance works
of the HOC. Also to ensure all equipment’s are having two machines to support. The plant is
working in a 24*7 basis; the plant will continuously work for 2 years and will be closed down
for 45days for the maintenance works.

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AREAS UNDER THE DEPARTMENT:
1) Inspection
a) Ordered item
b) Routine inspection
c) Laws and Certification inspection
2) Maintenance
a) Shutdown maintenance
b) Preventive maintenance
c) Predictive maintenance
3) Central Workshop
a) Statute Maintenance
b) Pipeline
c) Machining (valve)
4) Planning
a) Plans for buying the products (predicting 3 months requirements).
b) Annual shutdown works.
c) Outsourcing the works other than skeleton works.

5.13 UTILITIES DEPARTMENT

The utility department can be defined as the heart of the industry. The department control’s
the production wing in the form of steam, water and air which are need for the plants.
Responsible and authorized for the planning and execution of the planning;

 Generation and supply of the steam

 Statutory inspection of boilers and coordinating with statutory authorities
 Supply of instrument air and plant air
 Supply of cooling water
 Receipt and transfer of fuel
 Works contract
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  Calibration of storage tanks
 Planning and scheduling of works for major shut down
 Painting jobs
 Vendor evaluation
 Evaluation of internal customer material department
 Coordinate ISO 9001 activities pertaining to mechanical department
 Steam is required for the plant as well as for the production purpose
 Cooling water
 Instruments for controlling the flow of pressure and temp in the plant
 Pre Treatment Plant (PTP)
 DM Plant
 Cooling Tower
 Sanitation
 Fuel storage handling/storage (maintaining the records of stock)
 Hopper bottom tank for water treatment

Areas Covered:

1. Air Compressor: Air for the different machines to operate, cleaning purposes etc.

2. Boiler: The boiler is the plant which is the main part of the HOC plant. This is the one
which produces and supplies the pressure required for the different plants in HOC. Capacity:
24ton/hr

3. Fuel Storage: The fuel for the plant is taken from the BPCL located near to the HOC. The
main fuel used for the plant is furnace oil. There are 2 big tanks for the storage of fuel in HOC.
Capacity: 999kl tanks.

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 5.14 INSTRUMENTATION DEPARTMENT
Departmental Hierarchy

GM

DGM

MANAGER MANAGER

DEP. DEP. DEP.

MANAGER MANAGER MANAGER

ENGINEERS ENGINEERS ENGINEERS ENGINEERS

FUNCTIONS OF THE DEPARTMENT

This department is responsible for planning and execution of the work concerned with the
section of the plant to them and initiates procurement activities. The execution of work orders
and preventive/breakdown maintenance is carried out.

The department is mainly a service or maintenance based department in HOC. This section
looks after the plant automation and its controls. Also equipment availability is recorded by
this department.

For General shift, the routine maintenance and new project assistance are done. During the
shifts, the administration as well as reporting works is done and there will be 4 shift engineers
for 4 shifts for any emergency works during those times.

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 5.15 VIGILANCE DEPARTMENT

Departmental Hierarchy

SENIOR VIGILANCE
OFFICER

Functions of the Department

HOCL's Vigilance Department, headed by Sr. Vigilance Officer, at Kochi in, Kerala. The
focus of the Vigilance wing is to help all other departments of HOCL 'improve their
functioning in transparent manner so that the target of optimum turnover and profitability are
achieved'. Emphasis is given on the preventive vigilance. Accordingly, the thrust of the
department has been towards system study / improvement and to ensure the implementation
of laid-down procedures / policies, rules etc. The guide lines and circulars issued by CVC
(Central Vigilance Commission) are duly circulated for implementation by all concerned
personnel. Prescribed / required manuals are being updated. Information technology is being
utilized to ensure that all information related to the award of contracts, above the threshold
value, are regularly updated on the web-site of the company. ERP system has been installed
to improve the efficiency of the system.

The Vigilance department takes prompt action in respect of complaints received. There is a
comprehensive complaint handling policy and prescribed punitive action is duly suggested,
after conducting fair investigation / enquiry, wherever required. Regular scrutiny of the APR
of the Officers and inspection of various transaction I activities are undertaken to detect
deviation, if any, and ensure prescribed correction.

Awareness programs in respect of CDA Rules, RTI Act, PIDPI (Whistle Blowers Act) etc. are
regularly organized by the Vigilance Department. A 'Vigilance Awareness Week' is organized
every year and all personnel, of all level, actively participate. The Vigilance department
maintains close interaction with its supervisory authority i.e. CVC, CBI and other government
agencies, to strengthen the Vigilance setup in HOCL.

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 CHAPTER 6

SWOT ANALYSIS

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SWOT analysis is a strategic planning method used to identify and evaluate the Strength,
Weakness, Opportunities and Threats involved in a project or in a business venture. It involves
specifying the objective of the business venture or a project and identifying the internal and
external factors that are favorable and unfavorable to achieve that objective. A SWOT analysis
may be incorporated into a strategic planning model. Strategic planning has been the subject
of much research.

 Strength: Characteristics of the business or team that give an advantage over others in
the industry.

 Weakness: Characteristics that place the firm at a disadvantage relative to others.

 Opportunities: External chances to make greater scales or profit in the environment.

 Threats: External elements in the environment that could cause trouble for the
business.

The aim of SWOT analysis is to identify the key internal and external factors that are
important to achieving the objective. These come from within the company’s unique value
chain.

6.1 STRENGTHS

 Good team spirit.

 Committed and experienced workers.

 Good quality products.

 Maintaining International Quality System.

 High level of customer satisfaction.

 24 *7 Continues production process.

 Good fire & safety department to avoid accident.

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6.2 WEAKNESSES

 Weak marketing department

 Company is facing shortage of qualified employees

 No plans to expand or diversify its plant, equipment’s

 The company is not focusing on international market

 Current financial position is not satisfactory

6.3 OPPORTUNITIES

 Merging with BPCL with chemicals to produce new products.

 Expansion of plant capacity with more production.

 Increase in demand for chemicals due to increase in industrial and pharmaceutical

sector

6.4 THREATS

 Inadequate supply of raw material (Benzene) in the country and high cost of

imported raw material

 Rapid technological changes

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 CHAPTER 7

FINDINGS, SUGGESTIONS AND CONCLUSION

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7.1 FINDINGS

 The employees are satisfied with working conditions and working hours of the firm.
 The company maintains international quality systems and has been certified
ISO 9001 and ISO 14001
 Company is not thinking about expanding its products, plants etc..
 Company is inefficient in entering into international markets
 Company is under utilizing its plant facilities
 Company is unable to cop up with changing technologies
 Financial position is not satisfactory because the profit from the unit is diverted for
making up the loss of parent company
 Promotional activities are not efficient by marketing department
 Company is not having enough number of employee and shortage of manpower is
there
 Company should associate with giant companies like BPCL , Cipla etc.. to face
competition and to increase revenue

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7.2 SUGGESTIONS

 The company should maintain good relationship with its employees and the public
 Quality of the product should be maintained and to be communicated to the target
market
 Concentrate on expansion of plant, equipment's and diversification of products etc.
 Company should think about expanding its business into international markets
especially Asian countries
 Company should increase its plant utility to make more products
 Company should think about recruiting experts to implement latest information
technology enabled systems in its activities
 Company should avoid diverting funds to parent company which in loss, to avoid
financial problems
 Product promotion activity should be introduced by the company.
 Recruit qualified employees to fill the vacancies in the company
 Company should leverage from increase in the petrochemical industries and
pharmaceutical sectors

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7.3 CONCLUSION

The government owned company; Hindustan Organic Chemicals Limited is one of the greatest
assets to a developing country like India. With large employment strength and support from
the government, the company can contribute more to the gross production and reduce the
nation’s dependency on the imports. HOCL was earning a huge profit till a couple of years
back and was also providing job opportunities for many youngsters. But recently the plates
have turned around with the company incurring losses and coming to stand still. But the hopes
are still on the change in the government there would be decisions favoring the company.

The company has got several departments with good capability which can ensure the smooth
functioning of the organization. It was observed that the stability of an organization is always
affected by the decisions of the top management and other units linking the organization.

With high potential and availability of key resources the company can look forward in
diversifying its product so that it can expand itself and earn a higher return on investment. The
focus can also be given in expanding the market to outside country and making its presence
felt in the international market to a greater extend.

The study help to understand how the key business processes are carried out in an organization
and how information is used in organization for decision making at various levels. The study
was successful in understanding the extent of the technology adoption.

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 BIBLIOGRAPHY
REFERRED TEXT BOOKS

 Kotler,P.,& Keller, K.L. (2009).Marketing management. Upper Saddle River,N.J:

Pearson Prentice Hall
 C. R. Kothari (2009) “Research Methodology: Methods & Techniques” 2nd revised
edition, New Age International Publishers, New Delhi
 Rao V.S.P “Human Resource Management”,2nd edition,Pearson Prentice Hall,New
Delhi,2005
 Philip Kotler (2001) “Gary Armstrong: Principles of Management” 2nd edition, Tata
McGraw Hill
 Information of the P&A Department and the HODs of the various department HOCL
AMBALAMUGHAL

WEBSITES

 www.hoclkochi.com
 www.hoclindia.com
 www.chemicals.nic.in

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