Sud-Chemie India Pvt.ltd OS Report
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Transcript of Sud-Chemie India Pvt.ltd OS Report
AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD.
CHAPTER –I
INTRODUCTION
Page |1ILAHIA SCHOOL OF MANAGEMENT STUDIES
AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD.
1. INTRODUCTION
The planned coordination of people and their joint efforts for the achievement of the
specific goals is known as an organization. The organization study involves the study and
structure of its various departments. The structure of an organization is very important and it
is interesting to have a study up on Süd-Chemie India Pvt. Ltd which has very large and stable
structure and also it is a profit attaining organization which has a highly successful growth.
Süd-Chemie India is engaged in the manufacturing of catalysts for various
applications, having two manufacturing facilities. One in Cochin (Kerala) and the other in
Baroda (Gujarat). Manufacturing operation was started in 1970. Both the units and the R&D
division are ISO 9001:2000 and ISO 14001 certified. The company was registered in 1969 as
Catalysts and Chemicals India (West Asia) Pvt. Ltd. The name was first changed to United
Catalysts India Ltd. and then to Süd-Chemie India Ltd., consequent to change in name of the
parent company. Manufacturing operations at Cochin unit has started in 1970. Baroda unit
was started in 1978. The Company has got marketing offices at Delhi and Bombay.
The company has been catering to the Syngas catalyst requirements of almost all the
fertiliser manufacturing companies in India. They are market leaders for Syngas catalysts in
India. Refineries and Petrochemical industries are also using their catalysts. With the
introduction of MIDREX catalysts they started meeting the requirements of Sponge Iron
Plants also. Now Süd-Chemie India has started feeding to the highly competitive automobile
sector also with our Catalytic Converters for two and three wheelers as OEM suppliers.
Page |2ILAHIA SCHOOL OF MANAGEMENT STUDIES
AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD.
1.2 SCOPE OF STUDY
The organization study encompasses the entire functioning of the organization which
includes the nature of the business it is involved. About the company’s current scenario, the
departmental segregation created for the implementation of plans and procedures, the current
branches that it controls and the future expansion plans which includes both the national and
international markets. Moreover the needs to conduct an organizational study lies in the fact
that they provide an in depth understanding of what a company is all about and the
understanding factor of its existence.
The day to day activities of the organization
Departmental functions
The organizational and departmental structures
An understanding about services provided by organization
The company and its incorporation
1.3 OBJECTIVE OF THE STUDY
To familiarize with the functioning Süd-
Chemie India Pvt. Ltd.
To familiarize with the different departments
in the organization and their functions
To understand how key functions are
performed in the organization
To understand how information is used in
the organization for decision making at various levels.
To familiarize with the process of
recruitment and selection of manpower
To know about the financial position of the
organization
To know about its future ventures
Page |3ILAHIA SCHOOL OF MANAGEMENT STUDIES
AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD.
To relate theory with practice.
1.4 LIMITATIONS OF THE STUDY
1. Organization was reluctant to disclose matters related to the internal affairs of the
company.
2. The study was conducted mainly through interviews & interactions, and chances of
bias may exist.
3. Non-availability of data within the limited time
4. Inconvenience of employees
5. Study was based on personal limitations.
Page |4ILAHIA SCHOOL OF MANAGEMENT STUDIES
AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD.
CHAPTER -II
INDUSTRY PROFILE
COMPANY PROFILE
PRODUCT PROFILE
Page |5ILAHIA SCHOOL OF MANAGEMENT STUDIES
AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD.
2. INDUSTRY PROFILE
The global chemical industry forms the fabric of the modern world. It converts basic
raw materials into more than 70,000 different products, not only for industry, but also for all
the consumer goods that people rely on in their daily life. The modern chemical industry is
divided into four broad categories, comprising basic chemicals, life sciences, specialty
chemicals and consumer products. Its outstanding success is largely due to unceasing
scientific and technological breakthroughs and advances, which have led to the development
of new products and processes.
In the chemical industry and the industrial research, catalysis plays an important role.
The different catalysts are in constant development to fulfill economic, political and
environmental demands. When using a catalyst it is possible to replace a polluting chemical
reaction with a more environmental friendly alternative. Today, and in the future this can be
vital for the chemical industry. In addition it’s important for a company/researcher to pay
attention to the market development. If not a company’s catalyst is continually improved,
another company can make progress in research on that particular catalyst and gain market
share. For a company, a new and improved catalyst can be a huge advantage for a
competitive manufacturing cost. It’s extremely expensive for a company to shut down the
plant because of an error in the catalyst, so the correct selection of a catalyst or a new
improvement can be the key to industrial success.
To achieve the best understanding and development of a catalyst it is important that
different special fields work together. These fields can be: organic chemistry, analytic
chemistry, inorganic chemistry, chemical engineers and surface chemistry. The economics
must also be taken into account. One of the issues that must be consider is if the company
should use money on doing the catalyst- research themselves or buy the technology from
someone else. As the analytical tools are becoming more advanced, the catalysts used in the
industry are improving. S
Some of the large chemical processes that use catalysis today are the production of
methanol and ammonia. Both methanol and ammonia synthesis take advantage of the water-
gas shift reaction and heterogeneous catalysis, while other chemical industries
use homogenous catalysis. If the catalyst exists in the same phase as the reactants it is said to
be homogenous; otherwise it is heterogeneous.
Page |6ILAHIA SCHOOL OF MANAGEMENT STUDIES
AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD.
2.1 HISTORY
Humans have known about catalysis for many centuries, even though they knew
nothing about the chemical process that was involved. The making of soap, the fermentation
of wine to vinegar, and the leavening of bread are all processes involving catalysis. One of
the first formal experiments on catalysis occurred in 1812. Russian chemist Gottlieb
Sigismund Constantin Kirchhof (1764–1833) studied the behaviour of starch in boiling water.
Under most circumstances, Kirchhof found, no change occurred when starch was simply
boiled in water. But adding just a few drops of concentrated sulphuric acid to the boiling
water had a profound effect on the starch. In very little time, the starch broke down to form
the simple sugar known as glucose. When Kirchhof found that the sulphuric acid remained
unchanged at the completion of the experiment, he concluded that it had simply played a
helping role in the conversion of starch to sugar.
The name catalysis was actually proposed in 1835 by Swedish chemist Jöns Jakob
Berzelius (1779–1848). The word comes from two Greek terms, kata (for "down")
and lyein (for "loosen"). Berzelius used the term to emphasize that the process loosens the
bonds by which chemical compounds are held together.
The first time a catalyst was used in the industry was in 1746 by J. Roebuck in the
manufacture of lead chamber sulfuric acid. Since then catalysts have been in used in a large
portion of the chemical industry. In the start only pure components were used as catalysts, but
after the year 1900 multi-component catalysts were studied and are now commonly used
catalysts in the industry today.
Page |7ILAHIA SCHOOL OF MANAGEMENT STUDIES
AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD.
2.2 CATALYSIS
Catalysis is the change in rate of a chemical reaction due to the participation of a
substance called a catalyst. Unlike other reagents that participate in the chemical reaction, a
catalyst is not consumed by the reaction itself. A catalyst may participate in multiple
chemical transformations. Catalysts that speed the reaction are called positive catalysts.
Substances that slow a catalyst's effect in a chemical reaction are called inhibitors.
Substances that increase the activity of catalysts are called promoters, and substances that
deactivate catalysts are called catalytic poisons.
Catalytic reactions have a lower rate-limiting free energy of activation than the
corresponding uncatalyzed reaction, resulting in higher reaction rate at the same temperature.
However, the mechanistic explanation of catalysis is complex. Catalysts may affect the
reaction environment favorably, or bind to the reagents to polarize bonds, e.g. acid
catalysts for reactions of carbonyl compounds, or form specific intermediates that are not
produced naturally, such as osmate esters in osmium tetroxide-
catalyzed dihydroxylation of alkenes, or causelysis of reagents to reactive forms, such
as atomic hydrogen in catalytic hydrogenation.
Kinetically, catalytic reactions are typical chemical reactions; i.e. the reaction rate
depends on the frequency of contact of the reactants in the rate-determining step. Usually, the
catalyst participates in this slowest step, and rates are limited by amount of catalyst and its
"activity". In heterogeneous catalysis, the diffusion of reagents to the surface and diffusion of
products from the surface can be rate determining. Although catalysts are not consumed by
the reaction itself, they may be inhibited, deactivated, or destroyed by secondary processes.
In heterogeneous catalysis, typical secondary processes include coking where the catalyst
becomes covered by polymeric side products. Additionally, heterogeneous catalysts can
dissolve into the solution in a solid–liquid system or evaporate in a solid–gas system.
Catalysis is the single most important interdisciplinary technology in the chemical
industry. More than 85 % of all today’s chemical products are produced using catalytic
processes. However, the importance of catalytic processes is not limited to the chemical
industry. They also play a central role during the processing of raw materials in refineries,
during the production of energy e.g. in fuel cells and batteries, as well as in terms of climate
and environmental protection.
Page |8ILAHIA SCHOOL OF MANAGEMENT STUDIES
AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD.
2.3 INDUSTRIAL APPLICATIONS
Today catalysts are used in untold numbers of industrial processes. For example, the
commercially important gas ammonia is produced by combining nitrogen gas and hydrogen
gas at a high temperature and pressure in the presence of a catalyst such as powdered iron. In
the absence of the catalyst, the reaction between nitrogen and hydrogen would, for all
practical purposes, not occur. In its presence, the reaction occurs quickly enough to produce
ammonia gas in large quantities.
Catalysts are the workhorses of chemical transformations in the industry.
Approximately 85–90 % of the products of chemical industry are made in catalytic processes.
Catalysts are indispensable in
Production of transportation fuels in one of the approximately 440 oil refineries all
over the world.
Production of bulk and fine chemicals in all branches of chemical industry.
Prevention of pollution by avoiding formation of waste (unwanted byproducts).
Abatement of pollution in end-of-pipe solutions (automotive and industrial exhaust).
A catalyst offers an alternative, energetically favourable mechanism to the non
catalytic reaction, thus enabling processes to be carried out under industrially feasible
conditions of pressure and temperature. A catalyst accelerates a chemical reaction. It does so
by forming bonds with the reacting molecules, and by allowing these to react to a product,
which detaches from the catalyst, and leaves it unaltered such that it is available for the next
reaction. In fact, we can describe the catalytic reaction as a cyclic event in which the catalyst
participates and is recovered in its original form at the end of the cycle.
1. AMMONIA PRODUCTION
Ammonia is used mostly to produce fertilizer. It is also used as refrigerant in large-
scale refrigeration equipment and in the production of detergents. Ammonia is produced in a
process known as the Haber process, in which nitrogen and hydrogen react in the presence of
an iron catalyst to form ammonia. The hydrogen is formed by reacting natural gas and steam
at high temperatures and the nitrogen is supplied from the air. Other gases (such as water and
carbon dioxide) are removed from the gas stream and the nitrogen and hydrogen passed over
an iron catalyst at high temperature and pressure to form the ammonia
Page |9ILAHIA SCHOOL OF MANAGEMENT STUDIES
AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD.
2. AUTOMOTIVE
The catalysts (Catalytic Converter) remove harmful nitrous gases and carbon particles
from the engines exhaust gas, greatly reducing pollution, and allowing them to meet the high
environmental standards of the future.
Automobile catalyst is divided into Three Way Catalyst(TWC) for gasoline fuelled
cars and oxidation catalyst for diesel cars. TWC is named from the meaning of ‘simultaneous
reaction with 3 harmful elements’, and the three harmful substances are CO, HC and NOx.
These three substances have their unique harmful characteristics; CO phagocytises
haemoglobin carrying oxygen in blood, HC causes hallucination similar to bond, and NOx
causes dyspnoea by stimulating the mucous membrane of the respiratory system. Therefore
TWC is necessary for automobiles not to discharge harmful exhaust.
3. INDUSTRIAL PRODUCTION OF HYDROGEN
In oil refineries, large amounts of hydrogen are used in the conversion of crude oil
into end products such as gasoline, jet fuel, and diesel. This is why oil refineries often have a
separate hydrogen plant. Catalysts help to make hydrogen from natural gas and oil.
In refineries across the world, "on-purpose" hydrogen capacity is increasing as site hydrogen
demand reaches limits, due to tighter fuel specifications, the processing of heavier and sourer
crudes, increasing need for lighter crude oil products and strong demand for chemical intermediates.
Catalysts are used for hydrogen production via steam reforming, and are used for
hydrogen production using a range of feedstock’s, from natural gas and refinery off-gas to
LPG and naphtha’s.
Hydrogen is mainly used for the conversion of heavy petroleum fractions into lighter
ones via the process of hydro-cracking and other petroleum fractions (dehydrocyclization and
the aromatization process). It is also required for cleaning fossil fuels
via hydrodesulphurization.
Hydrogen is mainly used for the production of ammonia via Haber process. In this
case, the hydrogen is produced in situ. Ammonia is the major component of most fertilizers.
Page |10ILAHIA SCHOOL OF MANAGEMENT STUDIES
AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD.
4. OIL REFINERIES
When a refinery treats oil in the production of transportation fuels, numerous toxic
and environmentally damaging impurities are removed. Catalysts are used for the production
of diesel with ultra-low sulphur content. They are also used to make biofuels, for instance, by
converting biomass such as woodchips and household waste into diesel.
The oil we used to make “Petrol” (gasoline, or motor spirit) and other products, start
out as raw black petroleum. It cannot be used as it is, straight from underground. It must be
changed into the specific chemicals that people use. This process of changing petroleum into
useful products is called refining. The modern oil refinery is a large and complicated factory.
Automatic control of the various stages is efficient and safe. Teams of workers are needed to
keep the refinery machinery “running” smoothly.
5. SULPHURIC ACID
Catalyst are used to produce sulphuric acid. Sulphuric acid is the chemical product
most widely produced and sold in the world. Most of it is used in the manufacture of
fertiliser. Sulphur is present as an impurity in many raw materials. When producing oil, steel,
and other metals, this sulphur is released as sulphur dioxide in various exhaust gases, this
sulphur dioxide is converted into sulphuric acid, which transforms it into a saleable product.
2.4 COMPETITORS
GLOBAL SCENARIO
BASF(CHEMICAL COMPANY)
BASF SE is the largest diversified chemical company in the world and is headquartered
in Ludwigshafen, Germany. The BASF Group comprises subsidiaries and joint ventures in
more than 80 countries and operates six integrated production sites in Europe, Asia,
Australia, America and Africa.
Page |11ILAHIA SCHOOL OF MANAGEMENT STUDIES
AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD.
JOHNSON MATTHEY
Johnson Matthey is a British multinational chemicals and precious metals company
headquartered in London, United Kingdom. founded almost 200 years ago Technology
leadership forms the basis of our strategy to deliver superior long term growth
HALDOR TOPSOE
(We are known for our commitment to catalysis – a commitment we share with our clients.)
Founded in 1940 on the brink of the Second World War, Dr. Haldor Topsoe started the
company
based on a commitment to heterogeneous catalysis.
The company is governed by the notion that only through fundamental science can we
continue to offer our clients the best, and the past 60 years offer an on-going tale of
improving catalysis.
2.5 INDIAN SCENARIO
PROJECTS & DEVELOPMENT INDIA LIMITED (PDIL)
PROJECTS & DEVELOPMENT INDIA LIMITED (PDIL), a Government of India
Undertaking having ISO 9001:2008 Certification, is a Pioneer Consultancy and Engineering
Organization in India with experience of over 40 years in Planning, Design, Engineering,
Procurement, Project Management, Construction & Commissioning of Fertilizer Project and
Allied Chemical Plants in India and abroad.
PDIL manufactures and supplies a wide range of proven catalysts developed entirely
on its own technical know-how. These catalysts are performing excellently in almost all
fertilizer plants in India. PDIL catalysts have also been exported to European and Middle
Eastern Countries.
PDIL came into existence in 1950s and most of the fertilizer plants in India have
utilized the expertise and experience of PDIL. PDIL not only engineers the plant for its
clients but also execute projects to revamp, modernize and enhance capacities of these plants
from time to time, besides advising on operational and technical difficulties faced by them.
Page |12ILAHIA SCHOOL OF MANAGEMENT STUDIES
AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD.
Over the last six decades, PDIL has rendered the entire gamut of engineering, project
management, construction and commissioning supervision of Greenfield and expansion of 25
ammonia and 38 urea fertilizer plants.
PDIL has conducted feasibility studies, demand assessment studies, environmental
impact assessment studies, etc for various clients. PDIL is also an approved third party
inspection agency for Indian Oil Corporation, Hindustan Petroleum Corporation Limited,
Bharat Petroleum Corporation Limited and BHEL among others.
2.6 COMPANY PROFILE
INTRODUCTION
SUD-CHEMIE INDIA PVT. LTD. is engaged in the manufacture of catalysts for
various applications. Catalyst is a chemical substance used for increasing or decreasing the
rate of chemical reaction and this process is known as Catalysis. The catalyst may participate
in multiple chemical transformations. Catalysts that speed the reaction are called positive
catalysts. Catalysts that slow down the reaction are called negative catalysts or inhibitors.
The main activities of Sud-Chemie India P. Ltd. are manufacturing, sales and
technical services related to catalysts for various applications in fertilizers, petroleum and
petrochemical industries. The company has two manufacturing units in India, one in Cochin
and the other in Baroda (Gujarat). The Cochin plant is situated on the banks of river Periyar,
opposite to FACT, Udyogmandal Division and the locality is known as Binanipuram which is
part of Edayar Industrial Development Area. The main products are C12 series of high
temperature shift catalysts, C18 series of low temperature shift catalysts, C7 series of sulphur
absorbents and Vanadium Pent Oxide catalyst for Sulphuric acid manufacture.
ORIGIN
The company was founded by Sri Fazal Lalljee and Sri Altaf Lalljee and was
registered in 1969 as Catalysts and Chemicals India (West Asia) Pvt. Ltd. The name was first
changed to United Catalysts India Ltd. and then to Sud-Chemie India Ltd., consequent to
Page |13ILAHIA SCHOOL OF MANAGEMENT STUDIES
AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD.
change in name of the parent company. Manufacturing operations at Cochin unit has started
in 1970. Baroda unit was started in 1978. The company has been catering to the Syngas
catalyst requirements of almost all the fertiliser manufacturing companies in India and is
market leaders for Syngas catalysts in India. Refineries and Petrochemical industries are also
using our catalysts. With the introduction of MIDREX catalysts they started meeting the
requirements of Sponge Iron Plants also. Now they have started feeding to the highly
competitive automobile sector also with our Catalytic Converters for two and three wheelers
as OEM suppliers.
GUIDED BY THE GROUP VISION
Sud-Chemie India is guided by the vision and mission of Sud-Chemic AG, Germanie
the parent company. Sud-Chemie is a highly-innovative, listed, specialty Chemicals
Company head quartered in Munich. With its two division of Adsorbents and catalysts, the
Sud-Chemie Group, which has around 4,800 employees, generates total sales of approx. 1
billion Euros. Sud-Chemie holds an extremely strong position on global markets, almost 80
percent of group sales being realized with customers outside Germany. It systematically
exploits the potential offered by fast-growing regions, notably in Southeast Asia and the
Middle East.
STRATEGY
Sud-Chemie continuously pursues its goal of sustained organic growth coupled with a
significant improvement in profitability. Based on organic growth alone, the Group is aiming
to reach sales of over 1.2 billion euros and above average increasing EBITDA and EBIT
margins. Sud-Chemie’s strategy for realizing these financial targets resets on the four pillars
of technology and innovation, customer loyalty and orientation, process optimization and also
portfolio and investment management.
BOARD OF DIRECTORS: SUD-CHEMIE INDIA
DR. HANS JURGEN WERNICKE – CHAIRMAN
Page |14ILAHIA SCHOOL OF MANAGEMENT STUDIES
AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD.
DR. HANS JOACHIM MULLER – DIRECTOR
MR. VIKTOR BERNHARDT – DIRECTOR
LALLJEE – MANAGING DIRECTOR
MR. ISKANDER A. LALLJEE – JT. MANAGING DIRECTOR
MRS. HAMIDA A. LALLIJEE – WHOLE TIME DIRECTOR
CULTURE AND VALUES
To conduct the business with integrity
To act with honesty and trust towards business partners, employee and community; to
treat everyone with dignity, respect and fairness.
To respect the laws of the country and observe them in letter and spirit; to take pride
in paying taxes.
To satisfy customers requirements by providing them good quality products and
services.
To work with suppliers towards improvement of their products.
To respect nature and adopt least polluting processes and practices; to use minimum
resources.
To recognize that every employee has talent and potential; to provide opportunity for
every individual to develop
To implement safe work practices; to avoid causing harm to the community.
MISSION
“The Sud-Chemie group constantly endeavors to achieve customer satisfaction by
supplying quality products and services. It has been in this field for almost four decades.
Most of the customers have been with this organization all these years. The company is
proud that it could cater to its customers varied requirements arising from time to time”.
Sud-Chemie’s products ensure sparing use of energy and water as natural resources,
enhancing the quality of life for both humans and the environment. Adsorbents guarantee
Page |15ILAHIA SCHOOL OF MANAGEMENT STUDIES
AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD.
customized products with optimal properties in the sectors of beverages, consumer goods,
packaging and foundries. Sud-Chemie’s catalysts are essential for efficient chemical and
petrochemical processes and offer optimal solutions in the areas of hydrogen production and
emission control.
SPAN OF CONTROL
Sud-Chemie India has got two marketing offices located at Delhi and Mumbai.
Exports are mainly handled through Mumbai & Cochin. Imports for Cochin units are directly
managed and requirement of Baroda unit is managed through Mumbai Office. Purchases are
handled at Cochin, Mumbai and Baroda Offices. Accounting is done at all offices and
Corporate Finance and Corporate HRD matters are handled at Cochin. Corporate Secretarial
matters are also handled from Cochin. R & D works are mainly concentrated at Cochin;
however certain works are undependably handled at Baroda also. Managing Director and
Joint Managing Director are stationed at corporate office at Delhi. Factory related matters
are handled at Cochin and Baroda for the respective manufacturing units.
COCHIN UNIT:
This unit was started in 1970. Almost 25-30% of entire production of Sud-Chemied
India is carried out through Cochin unit. This unit is equipped with sophisticated machineries
and a well setup quality assurance laboratory. Cochin unit of Sud-Chemie has a total number
of 153 employees. Production process is continuous throughout the year. Supervisors and
unskilled labours works in three shifts, 8 am to 4 pm, 4 pm to 12 am and 12 am to 8 am. For
the managers and executives the office time is between 9 am to 5.45 pm.
GROWTH PATH
The organization was started in 1969 with one catalyst, i.e. High temperature shift
catalyst for ammonia industry and now, supplying more than 76 products, covering complete
chemicals, refinery, petrochemicals and automotive industries. Introduction of these new
innovative products, not only increased the sales turnover of the company, but also saved
huge foreign exchange to the country. Now all these products are very well accepted not
only in India, but also all over the world.
Page |16ILAHIA SCHOOL OF MANAGEMENT STUDIES
AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD.
The growth can be felt while looking at the phenomenal growth in of sales turn over
during the last ten years. During 1995-96 the turnover was 18.2 croes and 2005-06 it is
Rs.132 crores which is 600% growth in the last ten years. It is many folds higher than the
average industry growth. Last years turnover was about 330 Crores.
AWARDS
Sud-Chemie India has received a number of awards and recognition’s for its
manufacturing capabilities and export performance.
Received ICMA Award in 1989 for outstanding role in developing
Encilite-2 a high tech catalyst along with NCL and playing crucial role in the
development of Albene technology successfully commercialized by Hindustan
Polymers.
Received ICMA Award in 1990 for exporting Knowledge based high
tech products in competition with world’s renowned companies.
Received from CHEMEXCIL certificate of Merit for outstanding
export performance during 1992-93
QUALITY CERTIFICATIONS
R&D division of the company was certified ISO 9001 on 27.07.1999.
Cochin unit got its ISO 9002 certification on 18.06.1996.
Baroda unit got its ISO 9002 certification on 04.04.1997.
Cochin unit and R&D division has been certified ISO 14001 on 08.08.2000.
Now all have been certified ISO 9001:2000 and ISO 14001 standard.
Page |17ILAHIA SCHOOL OF MANAGEMENT STUDIES
AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD.
BUSINESS PERFORMANCES
The organization was started in 1969 with one catalyst, i.e. High temperature shift catalyst for
ammonia industry and now, supplying more than 76 products, covering complete chemicals,
refinery, petrochemicals and automotive industries. Introduction of these new innovative
products, not only increased the sales turnover of the company, but also saved huge foreign
exchange to the country. Now all these products are very well accepted not only in India, but
also all over the world.
The growth can be felt while looking at the phenomenal growth of sales turn over during the
last ten years. During 1995-96 the turnover was 18.2 crores and 2005-06 it is Rs.132 crores
which is 600% growth in the last ten years. It is many folds higher than the average industry
growth.
The following table shows the sales turnover of the company for the past 3 years:
Table 3.2 Table showing sales turnover of Sud-Chemie for the past 3 years
Year Sales turnover
2009-2010 360 crores
2010-2011 305 crores
2011-2012 470 crores
Page |18ILAHIA SCHOOL OF MANAGEMENT STUDIES
AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD.
2.7 PRODUCT PROFILE
Süd-Chemie India manufactures a wide range of catalysts for varied applications in
Fertilizer Industries, Refineries, Petrochemical Industries, Sponge Iron Industries and now for
emission control in automobiles and stationary engines. Our products are the result of many
years research and development work. The company continuously keeps on working for
improving the quality of our products. As a result the activity levels, efficiency and life of the
products have improved considerably over the years.
Qualities of the products are continuously evaluated at the high tech laboratories of
Süd-Chemie group so as to ensure that their products are of international standards.
They sell their products in the domestic market as well as export to various countries
including Europe, America, Iran, Libya, Japan and Indonesia. In fact, almost 50% of
our turnover is from export.Our entry into the highly competitive automobile catalytic
converter market and capturing of a sizeable share in the two wheeler catcon market in
a very short span of three years is indicative of our high calibre and capability. And
during this period itself we could make an entry into the European catalytic converter
market (for cars).
MAIN PRODUCTS
SL No
Real Name of Catalyst
Brand Name Type Application/Process Shape
1High Temperature
shift ContrastSHIFTMAX
120C12
Carbon monoxide conversion
TABLET
2Low Temperature
Shift ContrastSHIFTMAX
210C18
Low Temperature Shift Carbon dioxide
conversionTABLET
3Sulphuric Acid
Catalysts
SULPHUR MAX C116
For the manufacture of Sulphuric Acid by
Contact process
Ribbed ring
extrudate
Table 2.1 showing the Main Products
Page |19ILAHIA SCHOOL OF MANAGEMENT STUDIES
AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD.
CHAPTER -III
ORGANIZATIONAL CHART
ORGANIZATIONAL STRUCTURE
DEPARTMENTS OF THE ORGANIZATION
Page |20ILAHIA SCHOOL OF MANAGEMENT STUDIES
AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD.
3. ORGANIZATIONAL CHART
Fig. 3.1 Organisational Chart
Page |21ILAHIA SCHOOL OF MANAGEMENT STUDIES
Board of Directors
CEO
OPERATIONS
CORPORATE
FINANCE
CORPORATE
HR
QUALITY
ASSURANCE R & D
MAINTENANCE
DEPARTMENT
PRODUCTION DEPARTMENT
ACCOUNTS
DEPARTMENT
SALES AND
DISPATCH
PURCHASE
DEPARTMENT
HR
DEPARTMENT
STORES
DEPARTMENT
IT DEPARTMENT
ENVIRONMENT
AL POLICY
MANAGEMENT SYSTEM STANDARDS
NEW PRODUCT
DEVELOPMENT
AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD.
3.1 ORGANIZATION STRUCTURE
The basic structure of Sud-Chemie India Pvt. Ltd involves issues such as how the
work of the organization should be assigned among various positions, departments etc and
also to accomplished the total organization objectives.
Authority arises because of official positions of a person, his personal competence
etc. it is the relationship between two individuals ie, superior and subordinate. The flow of
this authority is known as top bottom authority. The real authority vests at the top level in the
authority. The four basic structure forms are the functional structure, divisional structure,
matrix structure and network structure.
FUNCTIONAL STRUCTURE
Functional structure is the structure that groups people on the basis of their common
experience and expertise or because they use the same resources.
DIVISIONAL STRUCTURE
Divisional structure is that structure in which functions are grouped according the
specific demands of products, markets or customers.
MATRIX STRUCTURE
Matrix structure is that structure that creates dual lines of authority and combines
functional and product departments.
NETWORK STRUCTURE
It is the structure which is the cluster of different organizations whose activities are
coordinated by contracts and agreements rather than formal hierarchy of authority. Sud-
Chemie India Pvt. Ltd has a functional structure. It is highly characterized by routine
operating tasks, much formalized rules and regulations, tasks that are grouped into functional
departments, centralized authority and narrow span of control of decision making that follows
the chain of command. Then top level managers make all decisions and the lower level
managers execute those decisions. Since everything is standardized and formalizes there is no
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much scope for flexibility. But at the same time creativity and innovations of employees are
always welcomed.
3. 2 DEPARTMENTS OF THE ORGANISATION
Organization structure is a pattern of relationship among various components or parts
of the organization. The basic structure involves such issues as how the work of the
organization will be divided and assigned among various positions, groups, departments etc.
and also to accomplish the total organization objectives which will be achieved. The various
departments in Sud-Chemie India Pvt. Ltd are as follows:
OPERATIONS
Production Department.
Maintenance Department
CORPORATE FINANCE
Sales and Dispatch
Accounts Department
CORPORATE HR
HR Department
Purchase Department
EDP Department
Stores Department
QUALITY ASSURANCE
Management System standards
Environmental Policy
RESEARCH & DEVELOPMENT
New Product Development
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AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD.
3.2.1 PRODUCTION DEPARTMENT
The production department controls all the production activities of the company. The
manufacturing activities of the company are continued round the clock in the year. This
department maintains close contact with all departments. Immediately on getting a new order
the same is reviewed by CEO and manager production and based on that production is
scheduled to meet the delivery requirements. The production manager is responsible for
smooth functioning of the production department and he reviews the actual and planned
production on a daily basis. If any deviations are noticed appropriate corrective actions are
taken.
Structure of Production department
Fig. 3.2 Structure of Production Department
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CEO
Production Manager
Shift Incharge-1 Shift Incharge-2 Shift Incharge-3
Workmen Workmen Workmen
AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD.
The Cochin manufacturing unit of Sud-Chemie India Pvt. Ltd. manufactures 3 catalysts:
i. C-12 (Iron oxide catalyst)
ii. C-18 (Copper zinc catalyst)
iii. C-116 (Vanadium pent oxide)
Applications
The catalysts C-12 and C-18 are used in various stages of Ammonia production. C-116 is
used in Sulphuric Acid production.
These 3 catalysts are those which are in continuous production in the factory. Apart from
these, 36 other catalysts are also produced here. Theses have various applications like
catalysts which reduce CFC content in air conditioners, catalysts for hydrogen powered
vehicles, etc.
C-12 Production Process
The basic ingredient for the production of the catalyst C-12 is Ferrous Sulphate (Fe2SO4). It is
greenish in colour.
Copperas tank preparation
The Fe2SO4 is diluted with water and made into a solution. This solution contains impurities
which are made to segregate in a Filter Press.
Sulphur washing
The clear solution obtained from the Filter Press is precipitated. This contains a large amount
of Sulphur content, which is reduced to a level of less than 150 ppm in a Membrane Press.
This is called Sulphur washing and it involves filtration, centre washing, corner washing and
squeezing. After squeezing, the moisture content of the output is reduced to 50%, and is
obtained in the form of cakes.
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AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD.
Calcination
The cakes are then dried and made into lumps through the process of calcination. This is done
in a Rotary Calciner, where hot air of up to 4300C is blown over the cakes. Now the moisture
content in the lumps is less than 5%.
Feed preparation
The lumps are stocked in a container called Lump container where they undergo ‘24 hours
ageing’. After this they are powdered into the required size. Then water addition is done
thereby increasing the moisture content from 5% to 12%, using Water sprayers. The resulting
output is called Feed.
Tableting (Calcinations)
The next step is tableting where the feed undergoes calcination in a Band Dryer. This forms a
part of the Tableting/Forming machine. Here moisture is reduced to up to 3% and tablets are
formed.
Screening process
In the Screening machine, the output undergoes screening where any broken tablets/powder
is segregated.
Thus C-12 tablets are prepared. It takes a period of 4-5 days for the raw material to be
transferred into finished product.
The manufactured C-12 tablets are now sent to the QA (Quality Assurance) department
where they are physically and chemically tested. Once the QA approval has been obtained,
they are ready for despatch, depending on the customer order.
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Fig. 3.3 Production process of catalyst C-12
3.2.2 MAINTENANCE DEPARTMENT
The maintenance department of Sud-Chemie is responsible for:
Preventive maintenance
Handling breakdown issues
Ensure smooth production
Ensure availability of spares
Safety precautions
Statutory and legal requirements
Preventive Maintenance: Preventive maintenance schedule for the entire 52 weeks
throughout the year is planned ahead and carried out. Schedules are prepared on the basis of
criticality and nature of each equipment i.e. if an equipment is much important in the process
of production, then it will be given more importance also the frequency of preventive
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Copperas tank preparation (Fe2SO4 solution)
Sulphur washing (membrane Press)
Calcination-4300C
(Rotary Calciner)
Tableting- Calcination (Band Dryer)
Feed Preparation
Screening machine Processed C-12 tablets
AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD.
maintenance will be high for that machine. For example the tabulating machine and the
forklifts are checked every day for its healthiness since these two are vital to carry out the
operations. As stated earlier the frequency of preventive maintenance depends on the
criticality and nature, also the frequency is revised if required. For example if one machine
undergoes more breakdowns than expected then its maintenance frequency will be revised to
a higher level, if it was once every two week it may be revised to once in every week. Also if
one machine shows less frequency in breakdowns then its frequency of maintenance will be
lowered. In short according to the performance of the machine the preventive maintenance
schedule will be prepared.
Break down issues: First priority is always given to production. Whenever any breakdown
occurs then it will be handled first rather than the scheduled maintenance. Every day a plant
meeting is arranged with the personnel from production department. In that meeting the root
cause analysis will be done for every breakdown issues and necessary precautions will be
taken to avoid the repetition of break downs.
Availability of Spares: It is vital to ensure the availability of spares for any kind of
maintenance activities. Maintenance department keeps a close contact with the purchase
department and stores for ensuring the availability of spares.
Safety Precautions: For carrying out a maintenance work safety precautions must be taken
to avoid unnecessary accidents. For each work permits are requested to production
department. It is their duty to isolate the area and issue work permit. All electrical and
mechanical connections are isolated from the area under work. After the completion of work
completion report will be issued to production department describing the works done,
manpower and spares used.
Statutory and legal requirements: There are several legal requirements to be fulfilled in
order to continue using certain equipments. Like in the case of boiler annual maintenance
and testing are compulsory as stated by the Govt. (factories and boilers act). Every two
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years, the ammonia tank should be test for hydroxyl. All the weighing machines are to be
tested for every year by the legal metrology department for accuracy.
The two executives will be carrying out the respective maintenance of equipments and
building. They maintain a log book which records all the works done by the department.
Also fire extinguishers are placed at respective areas. Normally the supervisors in this
department function in the general shift. Also all the workers except one will also work in
the general shift. The excluded worker will have to take the night shift and this rotate among
workers.
Structure of Maintenance department
Fig. 3.4 Structure of Maintenance Department
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Unit head, SCIL, EU
Senior manager
Deputy manager
Executive
Electrical
Executive
Electrical
Executive
Mechanical
AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD.
3.2.3 SALES AND DESPATCH
Main activities of this department are to collect sales order from sales offices situated at
Mumbai and Delhi. 80% of the total turnover of Sud -Chemie is through export sales and we
can say that Sud-Chemie is one of the major contributors among those who bring foreign
currency into our nation. The dispatch officer verifies the purchase order, its terms and
conditions of payment, delivery etc. and prepares a summary report on the quantities ordered.
This summary report is forwarded to the production department through the head of the
department to make available the product right at the time of delivery schedule.
Every day a contract meeting is convened with the production department and discusses the
scheduled dispatches and also discuss the possibility of delay, if any, expected due to any
technical reasons. He fixes the transporter and prepare the documents to be accompanies
with the invoices.
He will be having a thorough knowledge and all the documents to be supported for a
dispatch. He makes follow up with the customer for the timely payment of the invoice.
In the case of a purchase order received from a customer is supported by letter of Credit
opened by them, special care is taken to ensure that all the formalities and requirements of the
L.C. are met with before and after dispatch of the consignment. Usually sales invoices based
on L.C. are discounted with their banker immediately after dispatch.
He is also in charge of the ware house functions and proper up-keep of products stored in the
ware house. Proper verification of stocks in ware house is one of the important activities
performed by him.
Structure of Dispatch department
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Fig. 3.5 Structure of Dispatch Department
Functions of Dispatch Department (Dispatch procedures)
As soon as order is received, a contract review summary sheet is prepared.
Discrepancies in the order, if any will be communicate to M&TS.
Activities 1 & 2 above are normally completed on the day the order is received at EU.
In the case of L/C based orders, as soon as the L/C is received, it will be verified and
discrepancies if any are identified by Shipping Executive. He will sign it and forwarded
the same along with a copy of order and contract review summary sheet to HOD Shipping
who also will verify it thoroughly and sign it.
All discrepancies will be taken up with the agent or the customer after checking up with
M&TS.
Once the order is received dispatch schedule will be finalized in consultation with
production. The date by which the product is to be ready, and other crucial dates and
other requirements will be shown in the schedule.
Inspection, wherever required is planned and arranged in consultation with
production/QA.
The dispatch schedule will be updated as and when changes are required. Sample
attached.
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Materials Manager
Assistant Manager, Dispatch Dept.
Support Staff Support Staff
AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD.
Material will leave the factory only if all the documents are correct and completed as per
the terms of the order (and L/C).
In case of discrepancy/deviation from the terms, material should move only with the
permission of materials manager. A copy of the contract review summary showing the
discrepancies/deviations from the terms of the order should got signed by the materials
manager.
Invoice and other documents are prepared on the date the cargo moves out of the factory.
These documents are sent to the customer as per terms given in the PO or as per direction
received from M&TS, normally within two days of dispatch.
For export shipment it will take about 5 days for sending the documents to customer.
For Iranian orders, where legalization of documents is required, it takes about 15 days for
the documents to be submitted to the bank.
Dispatch details faxed to the customer on the same day of dispatch,
The following communication will take place before and after shipment.
a. Before dispatch – dispatch plan intimation to customer
b. After dispatch – confirmation of dispatch
c. Shipping details in case of export
d. Documents to customer and all others concerned.
Purchase Order Execution
a) Prepare contract review
b) To inform the customer for availability of the material, requirement of trucks and freight
rate
c) Select the drums for dispatch and prepare packing list
d) Select the transporter and inform the schedule.
e) Prepare shipping marks and required number of labels.
f) Prepare invoice and all other documents as per purchase order terms.
g) To send dispatch intimation with scanned copies of documents to customers and M&TS.
h) After completion of a dispatch prepare all original documents and send to customer.
i) To follow up safe delivery of the material.
j) To inform number of drums and pallet requirement to palletizing contractor(if export)
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AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD.
k) To send invoice and information bill details and other required documents as per PO to
CHA for arranging export.
l) Inspecting the container stuffing
m) Information given to central excise dept. for arranging inspection.
n) Prepare ARE-1 and conduct Central excise inspection.
o) Prepare and fix hazardous labels in 5 sides of the container if the material is hazardous.
3.2.4 ACCOUNTS & FINANCE DEPARTMENT
Chief designation is the Head of the department; he is responsible for arrangement of funds,
proper utilization of it, fixation of credit limit to customers, fixation of credit limit from
suppliers. He is the chief official in reporting all the major finance related activities to the
managing director. The following are the sub departments which are directly controlled by
him.
1. Sales and dispatch
2. Accounts
Functions of all these departments are carried out by the Assistant finance Manager (AFM)
who will be directly reporting to the head of the department. AFM will be responsible for the
various functions that are performed by the sub departments.
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Structure of Finance Department
Fig. 3.6 Structure of Finance Department
Functions of Accounts and Finance Department
The functions of the Accounts & Finance department relate to the following:
Export and import
Domestic production and sales
Fund management
Investments
Statutory departments liaising (with sales tax authorities, central excise, RBI,
etc.)
Group reporting (monthly & yearly)
Audit function (Internal audit, tax audit, department audit, group audit)
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DEPUTY GENERAL MANAGER FINANCE
ASST. MANAGER FINANCE
SENIOR EXECUTIVE (Sales /
Despatch)
SENIOR EXECUTIVE
EXECUTIVES
GENERAL MANAGER FINANCE
EXECUTIVES
AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD.
3.2.5 HUMAN RESOURCE DEPARTMENT
Structure of HR Department
Fig. 3.7 Structure of HR Department
Functions of HR department
1. Recruitment
It is the process of searching for prospective employees and stimulating them to apply for
jobs in the organization.
Recruitment planning at Sud-Chemie is initiated either by future development plans or by any
business improvement plans (volume of business). Manpower separation and resignation of
employees are also stimulating factors for recruitment. Internally, recruitment is carried out
through promotions and transfers. Vacancies mostly are filled by the leaving worker’s family
itself. Other external sources used are advertisement in newspapers, employee reference, and
advertising in company website.
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Chief Manager HR
Senior Executive
Executive
Receptionist
AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD.
2. Selection
It is the process of picking individuals who have relevant qualifications to fill jobs in an
organization. Another definition says that selection means “trying to fit an applicant to a
particular job”, i.e., matching the job and the applicants.
At Sud-Chemie, post screening of applications, the candidates are to undergo the personal
interview. For the selection of worker level employees, the HR and technical managers will
be conducting the interview. For the senior level, the vice president also joins the interview
panel, and for selection at managerial level, the MD accompanies the panel as well.
Unlike in most large organizations, at Sud-Chemie, the selection process does not incorporate
written tests or group discussions since the requirement usually is less in number. Mass
recruitment is not ordinarily necessary. Besides, most of the vacancies are filled by employee
referrals.
3. Induction and Orientation
Induction is designed to provide a new employee with the information required to function
comfortably and effectively in the organization. Orientation generally conveys general
information about the daily organizational routine, a review of the organization’s history and
a detailed presentation of the organizational policies and work rules.
At Sud-Chemie, a new employee is provided with an Induction manual to familiarize
himself/herself with the company and he/she is given an induction schedule of 15 days.
During this period, the employee will be introduced to the various departments and their
functions. More attention will be given to the functions of the particular department he/she
was chosen for. After 15 days of induction and orientation the new employee will have to
prepare a report and submit it.
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5. Performance Appraisal
Performance appraisal is the process of evaluating the performance and qualifications of
employees in terms of the requirements of the job for which they are employed. Commonly
performance appraisal is described as behavioral assessment, employee assessment, personal
review, progress report, staff assessment, service rating and fitness report.
At Sud-Chemie the performance audit is done once in a year. Marks are allotted to each
employee out of 100, based on the following criteria.
Attitude towards work
Behavior in the organization
Technical knowledge
Safety knowledge
Seniority (only in case of workers)
For the appraisal, performance evaluation forms are used which incorporate all the criteria
given above. The forms are forwarded to all department heads so that they can fill up the
forms corresponding to each employee in their department. It is their responsibility to fill up
the evaluation form and return them to the HR department. For each employee, the
immediate supervisor or the HOD will be assessing the performance.
The HR department will process the information in the filled forms and assign marks for each
employee out of 100. Those who get a score below 35 will be notified about their poor
performance and cautioned. Training programs will be arranged for them to improve their
performance. Based on their scores, employees are categorized into poor, average, good,
outstanding etc. Those who scored above 85 are eligible for promotions. Promotions are
granted to them according to the availability of vacancies.
6. Industrial Relations
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The field of industrial relations looks at the relationship between management
and workers, particularly groups of workers represented by a union. Labor relations can take
place on many levels, such as the “shop-floor”, the regional level, and the national level. The
distribution of power amongst these levels can greatly shape the way an economy functions.
In Sud-Chemie the industrial relations scenario includes regular meetings
like weekly shop floor meeting, monthly plant meeting, meeting on special issues, long terms
settlement etc. In the weekly shop floor meeting the participants will normally be the
production manager and the representatives of the trade union. Normally work related
problems will be discussed in this meeting. The monthly plant meeting will be participated
by all the department heads and union leaders. For specific issues separate meetings will be
entertained. Long term settlements in the case of salary restructuring and related matter are
done once in three or four years.
I. Monthly plant meeting including all the department
II. Weekly shop floor meeting (only production manager and employee union)
III. Separate meeting for specific issues
IV. Long term settlement for salary restructure and all (once in 3 years)
7. Grievance
If employees have any problem normally they will talk about the same in the shop floor
meeting or plant meeting in which necessary actions and negotiations are taken. For big
issues management committee will be formed including all the departmental Heads.
8. Separation
The first function of the personnel manager is to secure an employee from the society and the
last function is separating the employee from the company and to return him to the society.
Separation occurs due to:
Retirement
Discharge
Quitting
Lay-off
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For ensuring the welfare of the retire employees the company arranges some benefits like PF,
gratuity, superannuation grants etc.
Provident Fund
P.F. accumulation of employees of Sud-Chemie kept in an exempted fund which is
maintained by Sud-Chemie India Employees Provident Fund Trust. Trust includes
representatives of employees and management in which chief controller corporate finance
acts in the capacity of Management Trustee. Representatives from the employees are
selected through an election. Since the P.F. accumulations are kept in trust, it becomes easy
to settle the claims of retired / resigned employees without any delay, Periodical meetings are
arranged so that decisions are taken on the loan application from the employees.
Gratuity
Gratuity of Sud-Chemie is maintained with LIC in the form of Gratuity Fund. When an
employee is retired or resigned after 5 years of continuous service, gratuity amount payable
to him is worked based on the last drawn salary and number of service years. Based on this,
the retired/resigned employee gives a form “I” showing his consent to the amount. After this
a claim is forwarded to LIC for settlement. LIC settles this claim by issue of cheque in the
name of “Sud-Chemie India Pvt. Ltd. – Gratuity Fund Account”. On receipt of this cheque
from LIC, counter cheque is issued to employee and receipt of the same is obtained for future
record.
Superannuation
In order to provide better retired life to supervisory staffs, company is having a “senior staff
superannuation scheme”. This scheme is maintained with LIC and every year company
deposits a sum equal to certain percentage of total salary of supervisory staffs to this scheme.
Every year LIC issues a statement showing the amount accumulated against each employee.
On retirement of an employee who is member of this scheme, company forwards a GSCA
form to LIC asking for the various benefits that are offered. On receipt of this offer,
employee chooses any one of the same and the claim based on his selection is forwarded to
LIC which gets settled normally within a month.
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But in the case of resignation of any employee holding a supervisory position or
above it won’t be possible to execute the recruitment process immediately. So the company
always demands two month prior notification of resignation from the employees.
9. Work Load Assessment
Due to the business improvements, work load of the employees also increases. When this
happens employees will inform the matter to the HR department through the HOD or
personally. When an issue like this arrives at HR department, the evaluation or verification is
done by referring the work study conducted by National Productivity Council and the
suggestions or standards put forwarded by them for each process. National Productivity
Council will do the work study in each organization covering all the process and suggest the
minimum required labor for each work process. So the company can evaluate the proposal
for manpower recruitment due to the work load increase at a future time. So by referring the
suggestions put forwarded by the national productivity council the HR personnel can easily
find the necessity of the recruitment.
10. Government Relations
Normally a manufacturing organization maintains relationship with several Govt.
departments. Some of them are:
Labor Department
Pollution Control
Factories Department
ESI
Provident Fund
These departments have direct or indirect control over the functioning of the organization.
FUNCTIONS OF CHIEF MANAGER, HR
1. RECRUITMENT: One of the important functions of HR manager is the recruitment,
the company’s sales is growing at a percentage of 25%, due to this business improvement,
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AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD.
work load also increase when it happens employees will directly inform the manager about
this so that the manager can take necessary actions. Also when the company management
decides on any future expansion plans then these plans will be communicated to the head of
the departments.
2. GENERAL OFFICE ADMINISTRATION: General Office administration includes all
the necessary actions needed for the smooth functioning of an office
3. ATTENDANCE ASSESSMENT : HR manager assess the attendance status of all
employees. For this the executives will assist him.
4. LEAVE APPLICATIONS : Regarding leave applications the primary aim of the
manager is to ensure adequate manpower for every day so that the firm will function
smoothly. Avoid manpower shortage due to cumulative leave application for same period.
5.GOVERNMENT RELATIONS: HR Manager act as the communicator for the
organization to the Government.
6. UNION RELATIONS: Trade unions are common in industrial organizations. HR
manager is responsible for maintaining the relationship with the trade unions.
7. HANDLING EMPLOYEE RELATED PROBLEMS : If the employees have any
problem (in workplace) they will report to HR manager. It is the responsibility of the HR
manager to listen to their complaints and take necessary actions.
8. ENSURING ADEQUATE FACILITIES: Like canteen, office, Furniture etc.
9. MAINTAINING THE PAPERS: Papers regarding land, vehicles etc. which are owned
by the company. He has to ensure the payment of tax, insurance etc. pertaining to those
assets.
FUNCTIONS OF SENIOR EXECUTIVES
Books the ticket for travelling
Maintains the records of workers
Handles the HR related matters
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AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD.
He reports to the Chief Manager, HR
FUNCTIONS OF EXECUTIVES
Time office function
Maintains the leave records
Records absenteeism of employees
Monitor ESI formalities
Handle the contract workers’ attendance
He reports to Senior Executive
FUNCTIONS OF RECEPTIONIST
Attends the phone calls
Check the mails & reply to the mails of the organization
HR POLICY
Selection is based on the merit
Promotions are based on the performance of the employees
TRAINING AND DEVELOPMENT PROGRAMMES
Like any other organization SCIL also have concern on their employees performance.
So they always give attention to provide training programmes to the employees whenever
possible. Various training and development programmes provided by the SCIL are:
In house training
Softskill training
Conferences
Seminars
APPRAISAL MECHANISM
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AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD.
The main appraisal mechanism adopted by SCIL is Rating Scale Mechanism. A
performance audit is too done once in a year in the organization. Marks are allotted to each
employee out of 100, based on the following criteria.
Attitude towards work
Behavior in the organization
Technical knowledge
Safety knowledge
Seniority (only n case of workers)
In Sud-Chemie, performance evaluation forms are used which incorporate all the
criteria given above. These forms are forwarded to the entire department heads so that they
can fill up the forms corresponding to each employee in their department, it is their
responsibility to fill up the evaluation form and return to the HR department. For each
employee, immediate supervisor or the HOD will be accessing the performance. After filling
the form HOD will return it to the HR department. HR people will process the information in
the filled forms and assign mark for each employee out of 100. Those who get a score below
35 will be warned for poor performance. Training programs will be arranged for them to
improve their performance. Based on the score employees are categorized to poor, average,
good, outstanding etc. Those who scored above 85 are eligible for promotions. Promotions
are granted to them according to the availability of vacancies
DISCIPLINARY PROCEDURES
SCIL is very strict in discipline. Any misconduct of employees is identified and
appropriate punishments are given to them. Various punishments followed by the
organization are:
Warning
Suspension
Increment barring
Promotion barring
Dismissal
When misconduct occurs from any worker the concern supervisor will report to HOD of the
respective department. The HOD then will report to the HR department. The HR manager
will take the necessary action against it by giving suitable punishments for the misconduct
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AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD.
WAGES AND SALARY ADMINISTRATION
The wage and salary of the employees are administered by the HR department with
the help of Finance department. The HR manager decides the wages and salaries of each
employees of the company after a discussion with the Vice President, Edayar. The Finance
department maintains the records of salaries and wages of each employee.
The salaries are paid to the office staff of the organization based on their attendance.
Their salary is paid through the bank. SCIL have a multiple banking arrangement for salary
payment. Salary cutoffs on the basis of attendance of the employees are there in SCIL. An
attendance bonus is provided on the other hand i.e. 12 days extra salary. The various banks
associated with the SCIL are:
Federal Bank
SBI
SBT
HDFC
The wages are paid to both the lower level employees (monthly) and the contract
workers on a daily basis through in the form of cheque. The HR manager is accountable for
the salary and wage administration in SCIL, Edayar.
WORKING TIME AND SHIFTS
The normal work timing of SCIL, EU is 8AM to 4PM. There are 3 shifts in SCIL:
1st shift - 8AM to 4PM
2nd shift - 4PM to 00Hr
3rd shift – 00Hr to 8AM
MANAGEMENT OF TRADE UNIONS
Trade unions are common in all industrial organizations. There are two trade unions
in the SCIL. It commenced in the year 1980. All the employees of the organization are trade
union members. It is formed for the welfare of the employees. It sees into the complaints of
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the employees. The head of the trade union bring these complaints into the notice of the HR
manager. The HR manager is responsible for managing the trade unions. HR manager
handles all the disputes of the trade unions through meetings & discussions with the trade
union members.
In the year 2005, a pretty fierce dispute occurred between the trade union and
management regarding the salary increment. It leads to 3 months lock out. Later the issue was
settled by the management by agreeing the demands of trade unions.
3.2.6 PURCHASE DEPARTMENT
Purchase department personnel are responsible for the purchase of raw material, office
stationeries, spares for office and machineries etc. Purchase department is linked with all the
other departments. Whenever they require any commodity, they will inform the purchase
department and request them to take necessary actions. Purchase department is responsible
for the selection of vendors, inviting quotations, tenders etc.
Normally the items which have to be purchased are:
Raw material
Spares
Fuels
Office Stationery
Lab Equipment
Machinery
Gift and special items (as per the request of HR Dept)
Out of these the most important one is the raw material. Raw materials are
essential for continuing the production. Normally the marketing department will be
forecasting the future sales based on the previous year sales. From this forecast it is
possible to find out the yearly and monthly production requirement. According to this
requirement production department will be scheduling the production and required raw
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material estimate will be given to the purchase department. Raw material procurement
has a very important impact in the profitability of the firm, since it has a significant
share in total cost also optimum level of raw material should be maintained to avoid the
problem of over stocking and under stocking. Over stocking of raw material will result
idle investment of money (dead money) which is not appreciated.
Structure of purchase department
Fig. 3.8 Structure of the Purchase Department
For all the purchases other than the regular raw material purchase (derived from the
sales forecast) a committee called purchase committee is formed, which includes the
delegates from the purchase department and from other department for whom the commodity
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Functional Administration
Purchase Manager (Materials Manager)
VP, Edayar unitDelhi Unit
Sr. Executive Purchase
Associate Executive
AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD.
is purchased. In the committee meeting decision regarding vendor selection, brand etc. are
taken. But for normal production raw material supply is handled without discussing it in the
committee since, it is vital for the scheduled production.
Normal production raw materials are purchased on regular basis. The special
items and urgent requirements are discussed in the committee meeting. If the requirement is
very urgent and there is no adequate time to call for a meeting then the purchase manager
takes the necessary decision with the permission from higher authorities.
For production each month’s raw material requirement will be estimated by the
production department. This one month material requirement categorized to weekly
requirement along with the upcoming two months material requirement budget is passed over
to the purchase department ie, on the last week of every month purchase department will get
the material requirement estimate for the upcoming three months. This three months
requirement is given so that the purchase department will get enough time to plan the
requirement process. While giving the requirement material already in stock is also
mentioned with that so that adequate calculations can be done to find out the actual
requirement for purchase. Computerized ERP system implemented in Sud-Chemie will
automatically do the necessary calculations and communication.
The company will be already made some contracts with the selected vendors for raw
materials. According to the requirement and stock available stated in the document, the
purchase manager takes the necessary actions and contact the vendor for supply of raw
materials. The order is placed according to the requirement while considering the
transportation cost, overstock and under stock problems etc. ie., at an optimum time the order
is placed so that it will not cause any overstock or under stock problems. Ordering time is
found out while considering all the contingencies or delays. Like delays in check posts for
clearance, vehicle constraints or problems etc. so that the raw material will arrive at the
required time even some contingencies happens.
Even the raw material purchase is a standardized one in Sud Chemie and up to some
extend flexibility is incorporated due to the varied requirements of the customers. Some
customers may require highly reliable and high quality product without any cost constraints,
some may order for low quality one. It is because of the importance or accuracy requirement
of the process they are handling. For the above stated products this will be included in the
committee and if it is spares then maintenance department personnel will be included. The
main aspects discussed in the committee are:
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Base price
Tax structure
Transportation
Quality etc.
The primary aim is to reduce the overall cost rather than reducing unit price. For
example a distant vendor will be neglected even though he offers a low price per unit of the
commodity, because of the large transportation cost and delay. So an optimum choice is
made among vendors. After fixing the vendor the order is placed. In some case follow up
also made for ensuring timely arrival of the product.
When the material arrives at the factory premise, it will be directed towards the store.
Normally vendors will be sending the delivery note and invoice with each batch. Store
executive is responsible for the initial verification of the material arrived. He checks whether
the quantity specified in the invoice and actual quantity in the arrived batch is matching or
not. Immediately after the preliminary check store executive will be preparing the MIB
(material inward booking). After this the store executive will inform the concerned
department for inspection. Chemicals will be inspected by the QA department, machineries
and equipments will be inspected by the maintenance department while other items including
some general raw materials in standardized form will be inspected by the store executive
himself.
After the inspection store executive will be preparing the material receive note, on
reception of this accounts department will make the payment. This material receive note is
forwarded to accounts after passing through the purchase department, so that they can verify
the
terms and price etc. Also purchase department handles the negotiation with the
contractors for specific works, like boiler maintenance, painting etc.
Functions of purchase department
Purchases raw materials as on the behalf of production department
Keeps minimum re-order level
Daily monitoring of raw materials
Fix re-order level
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Arrangement of raw materials, spare parts, consumables, outsourcing services as per the
requirement of organization.
Enquire about materials
Receiving the codes and its comparison
Issue of order
Delivery of materials
Custom clearance on imported raw materials
Arrangement of transportation
Handling of issues related to quality problems, check post issues etc.
3.2.7 IT DEPARTMENT
SCIL Network (WAN)
Sud-Chemie India Ltd. has its offices in Delhi, Mumbai, Cochin, Baroda and these are
connected using VPN (Virtual Private Network). Sud-Chemie uses the networking services of
2 companies, Tata and Reliance. There are about 210 systems supported by the network
including desktops and laptops. There are 10 servers.
At its Cochin unit, the Admin Block, R&D and QA departments are Wi-Fi enabled.
SCIL Network Security
There are both wired and wireless networks at SCIL, wired for daily use and wireless for
portable use. The network is MAC filter and password protected. The Guest Network is a
highly secured wireless network and is password protected.
There are 3 levels of security-at the user level (password security), system level(Symantec
security) and Network level(firewall security).
The company provides secure limited access to the internet.
Data Storage and Backup
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At Sud-Chemie, data is stored in centralized locations. Each user has 2 locations for storing
data in the server. Storage quota is allocated for each user. There are also common folders for
sharing data between users.
Structure of IT Department
Fig. 3.9 Structure of IT Department
3.2.8 STORES DEPARTMENT
Activities of this department are controlled by stores in charge and he will be reporting to the
Materials Manager of Purchase Department. He is responsible for the safe keeping of the
materials and issuing the same when a demand note received from an authenticated official.
He maintains a close contact with the purchase department and informs about the material, if
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Corporate IT Structure
IT Network and Security Management
VP- Corporate IT
IT Infrastructure Management
Executive IT
Software & Licensing Management
Executive ITExecutive IT
AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD.
any, on receiving the same. He is responsible to inform the purchase officer regarding those
materials which are reaching re-order level.
Structure of Stores Department
Fig. 3.10 Structure of Stores Department
A stock ledger is maintained in the department which keeps record of each item and
its current stock. For each item specific code numbers are assigned so that it is easy to keep
record of the stock of each item. The stock ledger is updated after each issue or intake.
The major functions of store department are:
Receiving and safe keeping of materials
Issue of materials on request
Keeping track of current stock, inform the purchase officer regarding those materials
which are reaching re-order level.
When the material ordered by the purchase department, arrives at the factory premise, it will
be directed towards the store. Normally vendors will be sending the delivery note and
invoice with each batch. Store executive is responsible for the initial verification of the
material arrived. He checks whether the quantity specified in the invoice and actual quantity
in the arrived batch is matching or not. Immediately after the preliminary check store
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Materials Manager
STORE
EXECUTIVE
AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD.
executive will be preparing the MIB (material inward booking). After this the store executive
will inform the concerned department for inspection. Chemicals will be inspected by the QA
department, machineries and equipments will be inspected by the maintenance department
while other items including some general raw materials in standardized form will be
inspected by the store executive himself.
Items in stock are issued on arrival of demand note from other departments. This demand
note will include the item number, quantity, date etc. materials will be issued only when the
demand notes are approved by the concerned HOD i.e. , if the QA department needs any
chemical then they will prepare the demand note, approve it by the HOD QA and forward it
to the store. If the demand note seems to be valid, the store executive will issue the requested
item and update the stock ledger. If any item issued to one department, kept idle or it is not
been used then it can be returned to the store. In that case a return note is prepared by the
concerned department and forward to the store along with the item. Store executive will
include that in the stock ledger after verifying the quantity.
So in general documents handled by the store executive are:
Material inward booking (MIB)
Material receive note (MRN)
Demand note
Return note
Store executives will function in the general shift ie, 8 am to 4 pm. Specific time slots are
allotted for material issues. Since the production is continued throughout 24 hours a day,
they will demand the required raw materials for overnight production in the day shift itself.
If any contingency occurs or any urgent maintenance requires in the off time, then the shift in
charge
can take the items in the presence of security personnel after asking permission from the store
executive over phone.
Functions of Store executive
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Request for materials
Receipt of materials
Counting materials
Check the quantity and quality of materials
Enter the details about the materials received in the MRN
3.2.9 QUALITY ASSURANCE DEPARTMENT
This department plays an imperative role in the organization as it ensures the quality of the
products manufactured by the production department. The term Quality Assurance is
different from that of the term quality control. In fact Quality Assurance is the broader
activity which involves quality control within it. It is said so because Quality Assurance is
done right from the procurement of the raw materials and at each stages of production. This is
done in order to detect the problems if any occurred at any stages of production and to take
immediate action against it so as to produce the required product with the specifications by
making necessary adjustments in the production process. The Quality control is done at each
stages of production to ensure whether the products are up to the standard norms set by the
ISO. This will help the organization to enhance the product and thereby achieves customer
satisfaction.
Quality policy
Sud-Chemie EU is committed to enhance customer satisfaction by managing
processes, products and activities in a manner so as to achieve continual improvement of the
system. To achieve this:
1. Maintain quality system in accordance with ISO:9001:2000 standards
2. Understanding the needs and expectations of the customer and incorporating
these into the quality plan
3. Analyze customer satisfaction based on the feedback of the customer
4. Establish and review quality objectives
5. Involvement of all concerned for continuous improvement
6. Training and retraining of personnel
7. Spreading customer requirement throughout the organization
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Structure of QA department
Fig. 3.11 Structure of QA Department
MANAGEMENT SYSTEM STANDARDS
There are several management system standards pertaining to various aspects of
management. Some of the system standards that are of concern to the stake holders are: ISO
standard pertaining to quality management system and environmental management system,
brought out by the International Organization for Standardization (ISO), which is the world’s
largest developer of standards. ISO is a network of national standards institutes of 156
countries, of the basis of one member per country, with a central secretariat in Geneva,
Switzerland, that coordinates the system.
ISO 9000
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Chief Manager, HOD-QA
Executive Executive ExecutiveExecutive Executive
Cleaner Technician
AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD.
This is the general term used for the ISO 9000 series of standards applicable to the quality
management system. An organization’s quality management system can be certified to ISO
9001:2000 standard provided it meets the requirements prescribed therein.
ISO 14000
Similarly ISO 14000 is the general term used for the ISO 14000 family of standards.
ISO 14001 contains a set of requirements to define the operation of the environmental
management system. An organizations management system can be certified to ISO
14001:2004 standard provided the organization meets the requirements of this standard.
Since the requirements are prescribed in general form; both these standards have the
flexibility to be applied to any organization.
OHSAS 18001
This Occupational Health and Safety Assessment Series (OHSAS) specification and
the accompanying OHSAS 18002, guidelines for implementation of OHSAS 18001, have
been developed in response to urgent customer demand for a recognizable occupational
health and safety management system standard against which management systems can be
assessed and certified. OHSAS 18001 has been developed to be compatible with ISO 9001
and ISO 14001 management system standards. OHSAS 18001 defines OH & S – MS as part
of the overall management system, which facilitates the management of OH & S risks,
associated with the business of the organization.
OHSAS 18001 is neither an ISO standard nor a national standard. However, it has
been used as the basis for several national standards. This standard has been developed as
joint effort by BSI, National Standards Authority of Ireland, South African Bureau of
Standards, standards and Industry Research Institute of Malaysia and several other
certification agencies including BVQI.
The Edayar unit of Sud-Chemie is currently certified to ISO 9001:2000, ISO
14001:2004 and OHSAS 18001 standards. But the management recognizes that no
certification is of any relevance unless customer satisfaction is ensured. It is a fact that the
consequences of the failure of a catalyst while in use may cause the customer to suffer huge
losses. In order to avoid such circumstances the company has been taking extreme care at
each stage of the manufacturing operations. No stage is passed out unless our stringent
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quality assurance norms are satisfied. The customers will vouch for the end result. Always
maintaining excellent quality reflected in initial activity and sustainability of activity. And
improved performance and life, charge after charge. No wonder almost all major customers
are married to them for ages for their catalyst requirements.
R & D division of the company was certified ISO 9001 on 27.07.1999
Cochin Unit got its ISO 9002 certification on 18.6.1996
Baroda unit got its ISO 9002 certification on 4.4.1997
Cochin unit and R & D division has been certified ISO 14001 on 8.8.2000
Environmental Policy of Sud-Chemie India Ltd:
Sub Chemie India Pvt. Ltd., Edayar unit is committed to minimize environmental degradation
by managing process, products and services in an environmentally responsible and lawful
manner so as to achieve continual improvement in environmental performance.
For this the following is given due importance:
1. Comply with applicable statutory, regulatory and other requirement.
2. Minimize adverse environmental impact by upgrading production facilities and process
whenever required
3. Optimize resource utilization especially raw material, energy, oil and water
4. Impart appropriate training for to the employees
5. Implement and maintain EMS to 14001:1996 standards.
6. Develop green belt around the factory and recycle treated effluent for irrigation
7. Recover/recycle wastes or find alternative uses
8. Prevent pollution
9. Make the policy available to interested parties.
3.2.10 RESEARCH AND DEVELOPMENT DEPARTMENT
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“Süd-Chemie´s Strategic Research and Development revolves entirely around industrial
biotechnology. Focus is on progress and innovation based on the sustainable use of renewable
resources.
Süd-Chemie´s Strategic Research and Development has set itself this goal – efficient and
sparing use of natural resources in order to create more quality of life for humans and the
environment. We see sustainability as all-embracing – ecological, economical and social.
Our scientists make use of both their biotechnological expertise and the many years of
experience gained in the course of our classic catalyst and absorbent activities. Based on this
extensive technology portfolio, we can offer our customers one-stop system solutions for
sustainable resources.”
Functions of Research and Development Department
Improvement of existing catalysts
Development of new catalysts
Technology Absorption (communicating with national as well as foreign research
institutes, adopting new technology and rendering them into commercial practices.)
Investigation and Review of catalyst performances and failures.
STAGES OF NEW PRODUCT DEVELOPMENT
1. Idea generation (brain storming)
2. Literature survey
3. Review of the literature
4. Review of available resources
5. Preparation of product
6. Application & validation of product
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7. Scale up
8. Commercialization of product
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Structure of R&D
Fig. 3.12 Structure of R&D Department
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Secretary Deputy ManagerDeputy Manager
Cleaner CleanerLAB Pilot Plant
ExecutiveExecutiveExecutive Executive Executive Executive
Tech-nician
Tech-nician
Tech-nician
Tech-nician
Tech-nician
Tech-nician
Tech-nician
Tech-nician
Tech-nician
Functional Administration
HOD- VP, R&D
CEO, Edayar unitM&TS
AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD.
CHAPTER – IV
SWOT ANALYSIS
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4. SWOT ANALYSIS
SWOT analysis is conducted in order to find out the Strengths, weakness, opportunity and threat of the organization.
The SWOT analysis of SUD CHEMIE India Pvt. Ltd. is as follows:
4.1 STRENGTHS
4.1.1 ESTABLISHED AROUND THE WORLD
Sud-Chemie is a highly innovative, listed specialty chemicals enterprise
headquartered in Munich, Germany. Operating on a world wide scale, its core competency
focuses on now-how in the sector of chemistry and physics for surfaces comprising finest-
grained inorganic matter. With more than seventy sales and production companies
worldwide, Sud-Chemie seeks to expand the leading positions held in many markets. For
many years, more than 75% of Group sales have been realized with customers outside
Germany. It systematically exploits the potential offered by fast growing regions, notably in
Southeast Asia and the Middle East. Since Sud-Chemie India is a part of this massive
worldwide setup, it enjoys the benefits from it.
4.1.2 IMPROVED INNOVATIVE ABILITY
The most important lever for Sud-Chemie’s internal growth and profitability is a high level of
innovative ability. The growth targets cannot be realized unless succeed in translating
technological leadership into new, superior and above all, marketable solutions for the
customers. To ensure that in its own specific areas of activity Sud-Chemie remains on the
leading edge of technological progress in the long term and is able to expand its technology
platform, internal research and development processes were optimized from time to time.
Outstanding researches with adequate scope for creativity are the basic requirement for
innovative solutions. Efforts are therefore being intensified to bind researchers to the group
on a lasting basis and enlist top international experts. The complexity of advanced
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technology, as applied in specialty chemistry, calls for multidisciplinary co-operation within
the company itself, but also beyond corporate boundaries. For this reason, Sud-Chemie
cultivates a global knowledge network with well-known research institutes and universities.
These research partnerships allow the company’s own resources to be more selectively
employed and development times shortened.
In addition to dynamic innovation, the Group’s ability to react quickly and flexibly to specific
customer needs serves to guarantee success. Sud-Chemie sees itself as a partner for its
customers, not only during the marketing process, but also at the development stage.
4.1.3 CONSISTENT CUSTOMER ORIENTATION
It is the customer who ultimately decides on a company’s growth and its success. The aim is
to bind customers in the long term based on outstanding performance. Enhanced key account
management activities have expanded the scope of co-operation with major customers. As a
result of the trend towards global concentration, an increasingly large proportion of sales
accrue from globally-active enterprises holding strong market positions. Marketing activities
have therefore been geared more intensively towards these key customers.
4.1.4 RESEARCH AND DEVELOPMENT
Sud-Chemie India started its R & D activities along with the commencement of
manufacturing operations in 1970. Because catalyst technology is highly research oriented
and have to keep pace with the developments worldwide. During these years Sud-Chemie
were not confined to improvements in conventional catalysts as well. Today Sud-Chemie has
to its credit, the honor of developing more than 20 catalysts, all of which are performing
successfully in India and abroad. The latest from Sud-Chemie is Ultra Deep Hydro
Desulphurization Catalysts for treating Diesel which can reduce Sulphur to less than 50 ppm
from 2500 ppm. A number of catalysts developed are import substitution ones. R & D
Division is supported by a well-equipped Pilot Plant. From lab scale to Commercial Scale is
achieved here. After perfecting technology for commercial production it is passed on to the
manufacturing units. This unit got DSIR recognition 1974.
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Sud-Chemie India’s R & D division and the manufacturing units work hand in hand with
various National Laboratories and Universities. They have successfully commercialized
certain products developed by National Chemical Laboratories (NCL). R & D work in close
association with Indian Institute of Chemical Technologies (IICT). Sud-Chemie have
entered into a memorandum of understanding with Indian Institute of Petroleum (IIP) for
development of certain new and import substitution catalysts. Also working jointly with
CSIR laboratory, NCL, IICT and IIP for the development of some catalysts for refining and
petrochemical applications. Sud Chemie’s R & D work in association with Cochin
University of Science & Technology on Catalyst Research.
4.1.5 CERTIFIED COMPANY
All international certifications obtained by the company are solid proof for the commitment
to quality. They work with properly laid out systems and procedures. There are well laid out
procedures and work instructions so that nothing is left to chance.
R & D division of the company was certified ISO 9001 on 27/07/1999
Cochin unit got its ISO 9002 certification on 18/06/1996
Baroda Unit got its ISO 9002 certification on 04/04/1997.
Cochin unit and R & D division has been certified ISO 14001 on 08/08/2000
Now all have been certified ISO 9001:2000 and ISO 14001 standard.
4.2 WEAKNESSES
4.2.1 LABOR ISSUES
The world has changed but Kerala has not, as far as the industrial relations scenario in the
state is concerned. Sweeping changes have taken place in the world and the rest of the
country, but we try to revisit our old values, beliefs and practices and attempt to re-examine
and possibility reposition ourselves in the world. A detailed study conducted in the state
reveals that the total number of man days lost on account of strikes in Kerala shot up from
539,138 in 1997 to around 3.25 million in 2005. Likewise, the man days lost on account of
lockouts also went up from 418,035 to 1.85 million and man days lost due to layoffs also
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drastically went up from 1.38 million to 5.68 million. In line with this trend Edayar Unit had
its share of strikes/lock out in 1973 (14 days), 1975 (45 days), 1989 (40 days), 1998 (105
days), 2003 (210 days) and 2004 (7 days). The need of the hour is for all stakeholders – the
government, managements, trade unions and the labor department to jointly plan and execute
certain identification common points of interest and concern.
4.3 OPPORTUNITIES
4.3.1 BETTER USE OF NATURAL RESOURCES
Mankind is currently facing great challenges. We are consuming raw materials at an
increasing rate. Now arise the questions- How can natural resources be utilized more
effectively? How can we secure our energy in fuel needs, as oil become more and more
scare? What can we do to compact global warming? The answers to these questions can only
be found with the help of innovative solutions provided by the chemical industry.
4.3.2 NEW MARKETS
A good source of renewable transportation fuels and lubricants is non-edible and used
vegetable oils. Though vegetable oils can be directly used in diesel engines, their high
viscosity (often> times that of diesel) and low pour points prevent their direct use. They can,
however, be Trans – esterified with lower alcohols, typically methanol, into the fatty acid
esters (FAME, fatty acid methyl ester) and used as diesel substitutes. Already, more than 6
Million tpa of biodiesel is produced globally today, much of it in Europe, principally
Germany. The major source of bio – diesel is Rapeseed oil in Europe, while it is Soya bean
oil in U.S.A. the Trans esterification reaction is catalyzed both by bases and acids. Catalyst
industry has a future market in the case of vegetable oils refining.
4.3.3 GTL TECHNOLOGY
Worldwide demand for clean, reliable and affordable energy has never been greater. New
technologies are needed to produce more oil and natural gas from remote or “stranded”
locations. Gas to Liquids (GTL) conversion is an umbrella term for a group of technologies
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that can create liquid hydrocarbon fuels from a variety of feedstocks. The conversion of
natural gas into liquid fuels is an attractive option to commercialize abundant gas reserves.
GTL, with virtually unlimited markets, offers a new way to unlock large gas reserves,
complementary to other traditional technologies such as Liquefied Natural Gas (LNG) and
pipelines. GTL has the potential to convert a significant percentage of the world’s estimated
proved and potential gas reserves which today holds little or no economic value. In essence,
GTL uses catalytic reactions to synthesize complex hydrocarbons from carbon monoxide and
hydrogen. So in short the GTL is an area where catalyst producers can look ahead.
4.3.2 ENVIRONMENTAL REGULATIONS
In the future, however, as environmental regulations abound and refining processes become
more sophisticated, there is room for new generations of catalysts that may make the business
more attractive for its participants.
In fact, environmental legislation mandating lower sulfur levels is a strong driver for catalyst
demand and development. That’s really the story going forward from 2000 and 2001.
“Environmental regulation is key, worldwide. We have to get cleaner fuels, “says First M.
Dautzenberg, vice president of technology development for ABB Lummus in Bloomfield,
N.J. In order to increase production of cleaner transportation fuels, “we will need
considerably more catalyst than we are using at this moment,” he continues. The diesel
specification for sulfur used to be 300 ppm; now it is about 50 ppm, “Dautzenberg adds.
Whether refiners install more catalyst or use the same system while regenerating more
frequently, he emphasizes, “It all leads to more catalyst per ton of product.”
4.4 THREATS
The total sales of catalyst for oil refining industry come close to total catalyst usage because
very few oil companies make their own catalysts. The growth rate in oil refining catalysts
tends to track economic activity, so it is low; 1 or 2% at best. “The business is growing at the
rate of energy usage or slightly above because of the need for more sophisticated processing,”
says Rick Penning, assistant to the senior vice president at catalyst technology supplier UOP
and head of its catalysts business task force.
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Because the emphasis for refineries continues to be on cost reduction, there is tremendous
pressure to lower catalyst costs, to the detriment of catalyst makers. Even though oil prices
have corrected themselves in the past year, leading to oil industry announcements of record
profits, cost pressure remains. Therefore, catalyst suppliers “have to always deliver better
performance but at the same or a very competitive cost”. However, if oil companies can
extract value in the performance of advanced catalysts, they are willing to pay a premium. A
sophisticated new catalyst that improves crude oil conversion just 1% will generate millions
of dollars of additional revenue that will justify its cost.
A negative market driver for refining catalysts has been consolidation within the oil industry
over the past 10 years. As companies merge, the oil industry is dominated by fewer, larger
companies that can exert greater pricing pressure on catalyst manufactures.
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AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD.
CHAPTER-V
FINDINGS AND SUGGESTIONS
CONCLUTION
5. FINDINGS AND SUGGESTIONS
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AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD.
FINDINGS
No strikes have been reported for the last 10 years and it shows the relationship of
workers and management as a good one.
SCIL have a flexible credit policy. They give credit facility up to 30-45 days and they
are getting a credit of 60 days from suppliers
No major environmental pollution has been reported for the past 50 years of operation
The customers have no rejection for SCIL products, which shows the product
satisfaction
New technology of membrane cell has the advantage of pollution free environment
Insufficient first aid facility.
SUGGESTIONS
The company must activate the research and development cell in order to have new
inventions in this field
In order to increase the production, the company must introduce some motivation
schemes for the employees
For the smooth functioning, they must invest a reasonable amount of working capital
Improve the first aid facilities by providing free medicines and treatments
The company should conduct market research to find out the movement of the
products and to identify potential customers
5.1 CONCLUSION
Page |68ILAHIA SCHOOL OF MANAGEMENT STUDIES
AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD.
My study at Sud-Chemie India Pvt. Ltd. was quite an enriching experience for me. It
gave me quality exposure and helped create a first-hand impression of an actual
organizational environment. It was possible for me to relate the subjects learned at the
academic sessions in my MBA program to the functioning at the business concern.
The study not only exposed me to the organizational atmosphere but also gave me a
look into the chemical/catalyst industry. Certain organizational characteristics like the flow of
information, corporate decision-making process by various echelons of the functionaries in
the organization could be visible from a closer view.
For the success of an organization, it is important that there should be strong and
harmonious relationships between groups and teams in the organization and there should be
an underlying spirit for the fulfillment of the organizational goals. The need for cohesiveness
and collective participation by members in the organization should be prevailing for any
entity to survive ad sustain. To maintain such a healthy and conducive environment at all
levels is a challenging task for the management.
This study was done with the prime motive of analyzing and understanding the
overall functions of an organization and its various departments, reporting and control
procedures and the ways in which each department of an organization is interdependent in
smooth functioning of an organization as a system. In spite of the existence of a few
limitation factors, whole hearted effort has been taken to make this project an achievement.
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AN ORGANISATION STUDY AT SUD-CHEMIE INDIA PVT. LTD.
5.2 BIBLIOGRAPHY
i. SCIL.”Sud-Cemie India Creating Performance Technology”
ii. Govt. of India Publication, “Constitution of India”
iii. www.Businessline.in
iv. www.sud-chemie-india.com. Munich: SCIL, 2012, Web.
v. F.A cheru Nilam,” International Business”, Himalaya
Publication
vi. Academy of Business Studies, “ The WTO”
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