Organisation Study - Indian Rare Earths Limited

1. An Organisation Study
at Indian Rare Earths Limited, Chavara, Kollam





Submitted in partial fulfillment for the requirement for the award of the degree of


MASTER OF BUSINESS ADMINISTRATION
M G UNIVERSITY
KOTTAYAM


Submitted by

Ampady S
Register No: 10111


Under the guidance of
Mr.: Mathew Kurian
Faculty Member
MBA Department, Caarmel engineering College,
Pathanamthitta











Caarmel Engineering College
Perunad, Pathanamthitta
May 2010

2. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

2


DECLARATION

I declare that the project report entitled “An
organisation study on Indian Rare Earths Limited” Submitted by me for the award of
Master of Business Administration of M.G University is my own work. The report has
not been submitted for the award of any other degree of this university or any university.




Place: Kollam Ampady S
Date:

3. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

3

ACKNOWLEDGEMENT


First of all I wish to express my deep gratitude and thanks to God who helped us in
completing the organisation study successfully.


I shall remain grateful to Mr.: Mathew Kurian, Faculty, MBA Department,
Caarmel Engineering College for his amble guidance and encouragement for completing the
organisation study. I am also extremely grateful to faculty member for their valuable suggestions
and advice regarding this work.

I also express my profound gratitude to project guide Mr: A.Jayapalan,
Sr. Manager, HRM for his valuable guidance and timely advice and well wishers for
encouragement given to us during the course of the project.

It is my pleasure to express a deep sense of grateful to Mr: Chandrasekhar,
Sr. Manager, Safety & Environment Department & MIS without his untiring efforts and
tremendous background information this work would not have materialized. I express my sincere
thanks to all the staff of IREL, Chavara for their co-operation during my study in the company.


Last but not least we thank my parents and for all their moral support and help, they
had given to me.

4. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

4
CONTENTS

Introduction
Industry Profile
Company Profile
Product Profile
Customer Profile
Departmentalisation

HRM Department
Mining Department
Production Department
Quality Control Department
Stores & Despatch Department
Internal Audit Department
Research & Development Department
Project & Maintanance Department
Marketing & Sales Department
Finance Department
Medical Department
Security Department
Safety & Environmental Department
Purchase Department
Civil Department

SWOT Analysis
Findings
Suggestions & Recommendations
Conclusion
Bibliography

5. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

5
Table of Contents

Subject Page Number
Chapter 1
Introduction 7
Objective & Scope of study 9
Methodology &Limitations of the study 10
Chapter 2
Industry Profile 11
Company Profile 14
History of the organization 15
Vision & Mission of IREL 16
Awards & Achievements 17
Product Profile 20
Customer Profile 22
Chapter 3
Human Resource Department 24
Mining Department 37
Production Department 39
Quality Control Department 44
Stores & Despatch Department 46
Internal Audit Department 49
Research & Development Department 51
Project & Development Department 52
Marketing & Sales Department 54
Finance Department 58
Medical Department 62
Security Department 65
Safety & Environment Department 66
Purchase Department 71
Civil Department 72
Chapter 4 SWOT Analysis 73
Chapter 5
Findings 77
Suggestions & Recommendations 78
Conclusion 79

Appendices
80

6. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

6


LIST OF TABLES & CHARTS

Name of the Table/Chart Fig. No Page No

Corporate Structure 1 8
Mineral availability & Contribution 2 12
Mineral Details 3 13
Product Profile 4 19
Product & Uses 5 20
Department Structure – HRM 6 24
Manpower Strength of the company 7 26
Pay scale – workmen 8 29
Pay Scale – Officers 9 30
Department structure – Time Office 10 35
Department structure – Mining 11 38
Department structure – Production 12 39
Production Capacity 13 41
Production Process 14 43
Department structure – Quality Control 15 44
Department structure – Stores & Despatch 16 46
Department structure – Internal Audit 17 49
Department structure – Research & Development 18 51
Department structure – Project & Maintanance 19 53
Department structure – Finance 20 58
Department structure – Medical 21 62
Department structure – Security 22 65
Department structure – Safety & Environment 23 66
Department structure – Civil 24 72
Organisation Structure 25

7. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

7
INTRODUCTION


Each and every organisation has its own importance
in the economic wealth of the nation. Different organisation meets different needs of people by
offering different products and services. Due to globalisation the world has changed into a global
village. In this fast and changing business scenario, it is imperative for every entrepreneur to
have a vivid understanding of the functional application of the new age business. As a part of the
academic curriculum each student has to undertake an organisational study to get practical
exposure. This study is conducted at
Indian Rare Earths Limited, Chavara.

IREL Chavara
is located 10 km north of Kerala
and 85 km from Trivandrum, capital of Kerala and 135 by road from Kochin is perhaps blessed
with the best mineral sand deposit of the country. The plant operates on a mining area containing
as high as 40% heavy minerals and extending over a length of 22 kms in the belt of Neendakara
and Kayamkulam.

The deposit is quite rich with respect to Ilm enite,
Rutile and Zircon and the mineral Ilmenite happens to be of weathered variety analysing 60%
Titanium Dioxide (TiO
2). The present annual production capacity of Chavara unit engaged in dry
as well as wet (dredging / Upgradation) mining and mineral separation stands at 2,00,000 tones
of Ilmenite, 1,14,500 tones of Rutile, 11,750 tones of Zircons and 10,000 tones of Sillimanite. In
addition to that, the plant has facilities for annual production of ground Zircon called Zirflour and
Microzir of the order of 6,000 tones and 300 tones respectively.

IREL Chavara
is one of the oldest and leading
public sector undertaking under the Department of Atomic Energy (DAE). It is an ISO 14001:
2000; OHSAS 18000 certified company supplies beach sand minerals to the foreign and
domestic market. It caters the requirements of developed countries like U.S.A, U.K, Germany,
Australia, Japan etc. The major mineral products of IREL are Ilmenite, Rutile, Sillimanite and
Zirflour.

8. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

8
CORPORATE STRUCTURE


Mineral Division  
Chavara 
Corporate & Registered 
office at Mumbai 
Mineral Division  
Manavalakurichi  
OSCOM Plant 
Orissa 
Rare Earths Division 
Udyogamandal
 
Fig No. 1

9. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

9
Chapter 1
RESEARCH DESIGN

A research design is a plan of the proposed r esearch
work. The research design simply a specific presentation of the various steps in the process of
research. Design means adopting that type or technique which is most suited for the research and
study of the problem. It is a plan, structure and strategy of investigation conceived so as to obtain
answers to research questions and to control variance.

1.1 OBJECTIVE OF THE STUDY

The main objective of the study is to familia rise
with the organisational functions in the organisation, there are many other minor objectives also.
They are the following:-

To understand about how an organisation’s system is performing.
To know about various departments and their functions in an organisation.
To study the managerial activities performed in an organisation.
To know how an organisation coordinates its activities.
To get a practical exposure as the future manager.



1.2 SCOPE OF THE STUDY

The scope of the study is to know about the
organisation, its structure, the functions performed by various departments and to know the
overall performance of the organisation. The study will help the management students to get a
practical exposure.

10. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

10


1.3 METHODOLOGY

Both primary and secondary data were used for this
study.

1. Primary Data:-
The primary data can be obtained either through observation or
through direct communication with respondents in one form or another or through personal
interviews. There are several methods for collecting primary data. They are observation method,
interview method, through questionnaire, through schedule etc. Here primary data were obtained
from direct interviews made on with managers, officers and workers of the firm.

2. Secondary Data:-
Secondary data means data that are already avai lable ie: - they refer
to the data which have already been collected by someone else. Here secondary data were
collected from company brouchers, manuals and other records.

1.4 LIMITATIONS OF THE STUDY

The study is limited to my experience and knowledge.
Lack of availability of secondary data from published journals and reports.
Secrecy of the organisation prevents them from giving some of the details
regarding the firm.
Employees were busy in their work so they could not give more
information.
Their may be errors due to the bias of the respondents.
Time is a major limitation in the course of study.

11. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

11

Chapter 2
INDUSTRY PROFILE

Rare earths elements series of chemical ele ments
of the periodic table. The rare elements with atomic numbers 57 through 71. In the early years
these elements were considered as rare elements and so they are called as rare earth metals. Later
many elements in this group were found splendid but their name remained unchanged. The
primary source of rare earth elements is greenish yellow coloured mineral sand, which is
Monazite. Its availability in nature is confined to certain beaches and rock found in certain
countries. The beaches containing the Monazite are found mixed with other minerals too. Most of
these are ores for valuable metals. An ore is a mineral form which metal can be separated
economically. These ores are Ilmenite, Rutile and Zircon. Ilmenite and Rutile forms the ore for
Titanium, Zircon for Zirconium. Even though Aluminum bearing metal Garnet and Sillimanite
are also found along with these beach sand minerals. But they are not commercially exploited for
Aluminum production due to economic reasons. However Garnet and Sillimanite in their natural
form are commercially significant. Ilmenite which is black in colour constitutes a major chuck of
these minerals (60%) presence of these minerals makes the beaches appear black. These minerals
are commercially known as beach sand minerals or heavy minerals.

The origin of beach sand is from rocks, which ar e rich with heavy
minerals. This sand particle reaches sea through rivers. The sea level is not remaining constant. It
is regarded that the sea level. It is now really 100 meters above what we had seen 20,000 years
ago. This white sand seen at the beach area contains the main constitute as Quartz. This is lighter
than black sand. As a result of movement of the sea this sand will erode away and black sand get
deposited. The black sand thus deposited 100 years ago is mined and processed.

In the year 1789 Fr. William George (1761- 1817) discovered Ilmenite at
knower in England and stated that this black sand contains some important metal. But he failed to
discover which metal it was. After several time, in the year 1875 the Hungarian scientist Martin
Heen Witch Klapporth found the same metal contains in the Rutile minerals about which Fr.
William George mentioned. After a series of investigations are found those metals content as
Titanium after “Titan” of Greek mythology.

12. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

12
Technology developed over the year has made the beach sand minerals to
be utilised in a variety of “industrial and domestic” applications. Monazite was mainly used in
the gas mantle industry. After the advent of electricity its demand decreased in the gas mantle
industry. Ilmenite and Rutile are used in high temperature refactory industry, ceramics industry
etc. Zircon is used in foundries, ceramics, refectories and in the manufacturing of Zirconium
chemicals, metals and alloys. Zirflour is used in foundries for high temperature castings. Garnet
is used in the manufacturing of abrassive polishing glass, TV tubes, for sand blasting and for
water filtration. The beach sand mining and processing industry has vast future because of their
demand in nuclear industry too. In the present scenario of booming economics like India and
china there is a huge demand for the beach sand minerals, Ilmenite in particular.

The current world production capacity of Ilmenit e and other Titanium feed
stocks for production of Titanium Dioxide Pigment, Titanium metal, Welding electrodes etc is
used around 70 lakhs million tones per annum (tpa). Approximately half of this from beach sands
and the balance from Ilmenite rocks mostly found in Canada and Norway. In view of the limited
supply of natural Rutile its share of consumption in pigment production is rather small and 55%
of its total availability of about 5 lakhs tpa is used in the non-pigment applications predominantly
in the production of welding rods and Titanium metal. The present production capacity of
pigment in the world is just above 4 lakhs tpa. North America is the largest producer with 37% of
the global capacity. Europe with 32% capacity is the second largest producer and Asia-Pacific
region with 21% capacity is the third. The balance 10% distributed among the rest of the world.
India has the largest resources base of 278 mil lion tones for
Ilmenite. This is the single largest and Ilmenite and least exploited mineral deposit in the world.
However 10% of this is only minerable resources base in India for other minerals are:-

Minerals In Million Tones Contribution to the world
Rutile 18 10%
Zircon 21 14%
Monazite 8 7%
Sillimanite 130 25%
Ilmenite 107 35%


Fig No. 2

13. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

13
In India the installed production capacity for Ilmenite is around 5-2 lakh tpa
(5-6% of global Ilmenite production) and the production of Ilmenite and Rutile during 2004-05
was over 3-5 lakh tones and 1300 tones respectively.

Presently there are few private organisations en gaged in the mining and
mineral separation of beach sand minerals. The Indian players at present are Transworld Garnet
Private Limited, VV minerals, Earth Minerals Private Limited, Tuticorn Titanium Resources and
value addition.





















It can be seen that value will be increased about 100 time through value addition natural Ilmenite.

Key success for the beach sand mineral industry are:-

Increase the Ilmenite capacity to reach economic scale of production.
Value addition project in minerals and rare earths compound.
Initiate action to develop new mining areas.
Forward integrate through stake in world leader in pigment Industry like
Tinfoss, DuPont or selling up a pigments plant.
Explore other mining options in neighboring countries.
Ti Mineral TiO
2 USD/Tones
Mineral feed stock
> Ilmenite
50-60 200-250
Manufacturing feed stock
> Stag
> Syn Rutile

87
93

575
878
TiO2 Pigment
> Rutile GR
> Antase GR

99.8
99.8

3666
3333
Ti Sponge 99% Ti 11111
Ti Mill Productions 99% Ti 22222
Fig No. 3

14. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

14
COMPANY PROFILE

On August 18, 1950 Indian Rare Earths Limited (IREL)
was incorporated as a private limited company jointly owned by the govt. of India and Govt. of
Travancore, Cochin with the primary intention of taking up commercial scale processing of
monazite sand at its first unit namely Rare Earths Division (RED) Aluva and Kerala for the
recovery of thorium.

After becoming a full fledged central govt. unde rtaking in 1963 under the
administrative control of Department of Atomic Energy (DAE), IREL took over a number of
private companies engaged in mining and separation of beach sand minerals in southern part of
the country and established two more divisions one at Chavara, Kerala and other at
Manavalakurichi(MK), Tamilnadu.

After a gap of 20 years IREL commissioned its la rgest division called
Orissa Sand Complex (OSCOM) at Chatrapur, Orissa. Today IREL operates these four units with
corporate office in Mumbai and produces/ sells six heavy minerals namely Ilmenite, Rutile,
Zircon, Monazite, Sillimanite and Garnet as well as various value added products IREL is
making profit for the last 6 years with its sales turnover reaching a peak exceeding Rs: 2600
millions in 2000-01, with export component of above Rs: 1000 millions.

Chavara plant is engaged in the processing of be ach deposits available on
the coastal belt of Neendakara- Kayamkulam.

15. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

15
HISTORY OF THE ORGANISATION

IREL’s history should not be narrated without
mentioning the name of the Germen chemist Mr. Herr Schomberg who has realised that the
shining yellowish brown particles sticking to coir, a coconut fiber shipped from India (1909)
contained Monazite.

This sparkled the discovery of vast deposit of m onazite a rich source of
rare earths a group of elements with a wide variety of uses in industry and science. A few plants
were operating at Chavara and Manavalakurichi for the separation of monazite.

1948:- The govt. of India setup atomic energy commission under the chairmanship of Dr: Homi
Bhabha. The export of Monazite was stopped and the possibility of setting up a facility to process
the beach sand mineral for the production of Rare Earths was examined.
1950:- IREL was incorporated at Bombay
1951:- IREL become the full-fledged govt. undertaking under the Department of Atomic Energy
and commissioned construction of its rare earths plants at Udyogamandal in Kerala.
1952:- Rare earth plant was dedicated to the nation on Dec 24 by the Jawaharlal Nehru.
1955:- Opening Thorium factory of Bombay.
1965:- Opening mineral division at Kollam in Kerala state with manufacturing facilities at
Chavara in Kerala and Manavalakurichi in Tamilnadu and a giant mineral sand separation and
synthetic Rutile plant at Chatrapur in Orissa.

16. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

16
VISION OF IREL

1. To be a leading supplier of beach sand minerals from Asia by supplying 10% of
the world demand for beach sand minerals over the next 7-10 years. It would be achieving by
maximum utilisation of existing capacities, new capacity addition, capturing major portion of the
incremental growth in the global TiO
2 feedstock demand and by developing competitive value
added Rutile, Zircon, Sillimanite and Garnet products that make handsome contribution to
revenue and profits.
2. To become the preferred rare earths products supplier (Producer and/ or Marketer)
for domestic customers to ensure long term sentences and profitability of rare earths business and
to achieve adequate efficiency in monazite processing as long as it is necessary / worthwhile.


MISSION OF IREL


1. To harness beach sands in an environmentally and socially responsible manner for
efficiently producing minerals and their traditional and innovative value added products of world
class quality that are used to make increasingly superior/ novel products required by customers.
2. To play a dominant role in developing domestic rare earths market by producing
and/ or marketing the quality value added products to realise maximum potential or rare earths in
a range of applications.
3. To build a professional, creative and committed workforce and nurture an
environment that fosters learning, sharing and development.

17. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

17
QUALITY POLICY

IREL is committed to provide products of
consistant quality to their satisfaction of the customers through Quality Management Systems
(QMS) implementation.

TECHNICAL EXCELLENCE


IREL uses state of art technology in mining and mineral processing. The rich experience and
professional expertise of people who are one among the best in the industry and strict
compliances to quality standards has enabled IREL to remain as the leading supplier of heavy
minerals to the nation and abroad. IREL is always been driven y innovation and sound
manufacturing practices, be it in product, technology or process.

AWARDS AND ACHIEVEMENTS


IREL has fairly good record in its performanc e
during the past decade. From 1997-98 onwards all out team efforts was taken up to achieve name
plate capacity for the mining and mineral separation plants in all the three locations, total sales
turnover, share of export and profit after tax started improved by leaps and bounds and the
company recorded increasing profit since then. In addition to production and financial
performance, IREL has excelled in the areas of marketing, safety and human resources
management. In recognition of the company’s efforts, scope awarded prestigious silver Trophy of
‘SCOPE’ award for excellence and outstanding contribution to the Public Sector Management-
Special turn around category for the year 1999-2000. During the year 2006-07 IREL posted all
time high sales turnover exceeding 3600 millions with export component over Rs:1000 millions
& all time high profit before tax of Rs:1000 millions.

18. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

18
Following are the list of awards & recognition won by IREL during the last ten years.

EXPORT AWARDS


1. Chemical and Allied Products Export Promotion Council (CAPEXIL) special Export
award from processed Mineral group for the year 199 6-
97,98,99,2000,01,02,03,04,05,06.
2. Indian Chemical Manufactures Association Certificate of Merit for ISO 9000
certification for 1997, ISO 9002 certification for 1998.
3. Certificate of merit from CHEMEXCIL under the category of basic inorganic and
organic chemicals for outstanding performance for the year 2000-2001 including
Agrochemical Panel.
SAFETY AWARDS


1. AERB safety awards won by Chavara Unit (Winner) for the year 2003.
2. Greentech awards won by Chavara Unit (Winner) for the year 2003.
3. Safety award from National Safety Council, Kerala chapter won b Chavara Unit
(Runner) for the year 2003.
4. National Safety Award (Mines) for lowest Injury Frequency Rate won by Chavara
Unit (Winner) fir the year 2003.
5. Apart from above national level safety Awards company’s Mineral Separation plants
namely Chavara has won many state level awards.

OTHER AWARDS


1. Silver Trophy of ‘SCOPE’ award for excellence and outstanding contribution to the
Public Sector Management _ Special Turn around category for the year 1999-2000.
(SCOPE - Standing conference of Public Enterprises)
2. Enterprise Excellence Award 1999-2000, 2000-2001 from Indian Institute of
Industrial Engineering.
3. Hindi Rajbhasa Shield for the year 2000-2001 for the best amongst PSU’s under
Department of Atomic Energy.

19. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

19
FUTURE PLAN

In the light of new changing economic scenari o
IREL is poised to adopt a two pronged strategy namely consolidation and expansion of the
operations and joint venture for value addition and new production facilities. Company is
poised to reach greater heights in the years to come. The phase I expansion at Chavara is
nearing completion and the expansion at MK is expected to takeoff soon. Expansion of
capacity at OSCOM is also progressing. I addition to expansion of mineral separation plants,
the company is planning to restart the manufacture the rare earths products in big way with
implementation of Monazite Processing Plant (MoPP) at OSCOM which is likely to commence
commercial operation by 2009. The successful completion of expansion activities will bring
forth a new era of higher capacity and profits and the company it is hoped will attain the
pinnacle of glory. The company will continue to be one amongst the most successful PSU’s.

20. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

20
PRODUCT PROFILE

Product means to the goods and services
combination the company offers to the target market.

Product Specification Specific Gravity Density Pac kaging
Ilmenite TiO 2 - 58% 4.45- 4.54 2600- 2630
In bulk HLP bags with
Polithine liner
Rutile Q
Grade
TiO
2 - 95% 4.18-4.24 2630-2650
In bulk 50 kg HLP
bags with Polithine
liner
Zircon
Special
Grade
ZrO
2 - 58% 4.60-4.70 2900-3000
In bulk 50 kg HLP
bags with Polithine
liner Sillimanite Q
Grade
Al
2O3 3.20-3.25 1950-2050 50 kg jute bags
Zirflour ZrO 2- 64% - 1800-1850
50 kg laminated HLP
bags with Polithine
liner
Microzir ZrO 2- 63.5% - -
Liner 20 kg laminated
Polithine bags

Fig No. 4

21. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

21

Products Uses
Ilmenite
Manufacturing of TiO
2 pigment synthetic Rutile and Titanium
slag
Rutile Fluxes for welding electrodes
Zircon sand Ceramics, Refractories and foundries.
Zircon Flour Ceramics and foundries.
Microzir Pacifier in Ceramics
Sillimanite Refractories
Garnet Abrasive for sand blasting, water jet cuttin g and glass polishing.
Monazite Raw material for production of Rare earth Component
Composite RE Chloride
Catalyst, Paint driers, basic raw material for Misc. metal which
used as lighter frint & mantles.
Thorium Nitrate Gas Mantles






Fig No. 5

22. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

22
CUSTOMER PROFILE


Prime customers of the major products of the
company are the following:-

A. ILLMENITE:-

1. KOCHIN MINERALS AND RUTILE LTD. KOCHI.
2. DCW LTD. TUTICORN.
3. TRAVANCORE TITANIUM PRODUCTS LTD.
4. KILBURN CHEMICALS LTD. TUTICORN.
5. KOLMAK CHEMICALS LTD. KOLKOTA.

B. RUTILE:-
1. ESAB INDIA LTD, CHENNAI/ KHARDAH.
2. ADOR WELDING LTD., MUMBAI/CHENNAI.
3. D & H SECHERON ELECTRONICS (I) LTD., INDORE
4. MARUTHI WELD LTD., GURGAON.
5. ROYAL ARC ELECTRODES PVT. LTD.VASAI, THANNE DIS T.

C. ZIRCON:-
1. THIRUPATHI MICROTECH (P) LTD., UDAIPUR.
2. RUBY CERAMICS PVT LTD., PUNE.
3. ASTRON CERA, SALAL DIST, SABARKANTHA.
4. JOHNSON MATTHAEY CERAMICS INDIA LTD, HOSUR, TN
5. FOUR FIELD, PUNE.

D. ZIRFLOUR:-
1. FOSECO INDIA LTD., PUNE.
2. VIDEOCON NARMADA GLASS, BHARUCH.
3. H & R JOHNSON (I) LTD., MUMBAI.
4. NAHAR COLOUR & COATING LTD., UDAIPUR
5. BHANU CERGLAZE P.LTD.

23. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

23
E. SILLIMANITE:-
1. MAITHAN CERAMICS PVT. LTD., CHIRKUNDA, JHARKHAN D
2. MANISHRI REFRACTORIES, CUTTACK.
3. ASSOCIATED CERAMICS, CHIRKUNDA, JHARKHAND.
4. TATA REFRACTORIES, BELPAHAR, ORISSA.
5. ASSOCIATED CEMENT COMPANIES LTD., NAGPUR/KATNI.

F. RARE EARTHS CHLORIDE:-
1. CIBA SPECIALITY CHEMICALS, UDYOG NAGAR, GUJRAT.
2. DHIRAJ INTERMEDIARIES P LTD., VAPI, GUJRAT.
3. RAVESHIA PIGMENTS LTD., VAPI, GUJRAT.
4. ANUPAM COLOURS, VAPI, GUJRAT.
5. BERGER PAINTS INDIA LTD., VAPI, GUJRAT.

G. THORIUM NITATE:-
1. FARGO MANTLE PRODUCTS LTD., MUMBAI.
2. MAKANI PRODUCTS LTD., MUMBAI.
3. B.K SHAW INDUSTRIES (P) LTD., KOLKATA.
4. A.D.C MANTLE MANUFACTURING CO., MUMBAI.
5. ELITE INDUSTRIES, MUMBAI.

24. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

24

DEPARTMENTS

1. HUMAN RESOURCE DEPARTMENT :-

IREL Chavara takes place it’s highly motivated and trained
human resource that has maximised its performance and their by its growth and profit. Morale of
the employees remains facilitating smooth working of the company. Skill requirement related to
different disciplines are identified and training programs and workshops are efficiency of the
human resource.

DEPARTMENT STRUCTURE



Fig No. 6
Sec. Head
Training
Sec. Head
Legal
In charge
Welfare
Medical
Personnel
Senior Asst.
Time Officer
Security
Guards
Dpty. Manager
Section Head
Senior Manager
(HOD) Medical
Dpty. Admin Officer
Time Officer
Manager
Security
General Manager
HRM
Unit Head
Subordinate Staff/ Clerical Staff

25. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

25
HR department lead by General Manager and two D eputy
Managers assisted him. The Security Department and Time Office are working under the General
Manager of HR Department. Four Deputy Officers and 14 clerical staffs are working under the
Deputy Managers.
People are the most important resources of an organisation
The main functions of HR Department are:-
1. Administration
2. Industrial Relations
3. Training and Employee Welfare
4. Time Management

1. ADMINISTRATION

The administrative functions of HR department
include
a. Manpower planning
b. Recruitment policy
c. Performance appraisal
d. Salary and wages administration
e. Industrial discipline
f. Maintaining service book and personnel file
g. Maintaining reservation register

a) Manpower Planning:-
Manpower Planning is important for any type of
organisation. It is the process which determines how an organisation should move from
its current manpower position to its desired manpower position. For this purpose, the HR
department at IRE collects feedback from all department inorder to identify their
manpower requirements of various departments and then the HR department crosscheck
whether there is any overstaffing in any of the departments. If these departments have
excess of staff, they are transferred to those departments where there is a shortage.
The company considers the number of employees p resently
as significantly high. There is a problem that sometime the VRS can lead to scarcity to
workers for particular job. At IREL using the process of multitasking the employees are

26. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

26
made fit to work in other function also. By the VRS scheme more than 100 employees
have been sent out within span of 3 years.

Manpower of the company
There are 491 employees in the company. Total ex ecutives are 105 and
workmen are 380. The number of contract workers are 632.
Details showed as below.

MANPOWER STRENGTH
Male Female Total
Executives 83 22 105
Workmen 355 31 386
Total 438 53 491














b) Recruitment policy:-

Recruitment in Chavara Plant is done through local
employment exchange for find out prospective workers. The office staffs and managers are
recruited by the Head Office through tests and Interviews.

Recruitment Criteria
For the recruitment of candidates, the candidates should be above 18 years
of age. The following steps are taken before the recruitment of employees. They are govt.
guidelines, the recruitment only through employment exchange, notification in internet and
CONTRACT WORKERS
Loading 65
Civil 85
Mining 235
Bagging 218
Canteen 29
Total 632
Fig No. 7

27. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

27
advertisement in newspaper should be needed. Application will be scrutinised with the help of a
selection committee and eligible candidates are called for an interview.

Selection :-
The steps followed in the selection process are
1. Inviting and receiving applications
2. Scrutinising the applications
3. Selection Test: - The selection tests of emplo yees are
a. Aptitude Test
b. Personality Test
c. Achievement Test
d. Trade Test
Appointment will be based on certain criteria’s like they are medically
tested after that induction training should be given. After training for a period of one year or
more they will be put as permanent employees.
c) Performance Appraisal:-
Appraisal is the evaluation of work quality or merit. In the
case of IRE performance appraisal is a systematic evaluation of employees by supervisors or
other familiar with their performance.

1. Straight ranking method:-
Under this method men as a whole are compares f rom other men
and ranked on the basis of overall performance.
2. Grading method:-
Under this method certain categories of work su ch as excellent,
very good, average, poor, very poor are established and defined actual performance of each
employee then compared with the grade definitions and ranked to evaluate the performance of
the employees. Last grade employees that are 8
th
& 9
th
grade, their work performance have been
observed by supervisors. But in the case of executives MBO’s are observed their performance
and efficiency.
In IRE performance appraisal is done on a yearl y basis to asses the
performance of the employees. The appraisal is done by three persons.

28. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

28
1. Reporting Officer.
2. Reviewing Officer.
3. Evaluating Officer.

Firstly the employees themselves do an appraisal and this is given
to the reporting officer and the person who has done the Key Appraisal together identifies the
Key Result Areas and weightage is allotted to each one of them. This is usually done at the
beginning of the year. The reporting officer checks whether the result areas set where met by the
appraisal or if their any deviation from it. And this is to be sent to reviewing officer and then
evaluating officer. Various other factors such as the appraiser’s managerial skills like job
knowledge, interpersonal skills are also included and guided and that is allotted in the appraisal
and there promotion is based solely seniority.

Promotion:-
In IREL promotion is given seniority based or based on experience.
Promotion is a transfer of an employee to a job that pay more money or that enjoys some
preferred status. Sometimes the company is considering the length of the service, education,
training courses completed, previous work history etc. Sometimes the company is also
considered ability, hard work, co-operation, honesty etc.

Condition for getting Promotion:-
1. Average leave should not exist more than 15 days.
2. Any disciplinary actions should not be taken during the service of periods.
3. Should not apply for job in any other organisation.
These candidates are eligible for getting promotion.

d) Salary and Wages Administration
:-

Wages in the widest sense means any economic
compensation paid by the employer under some contract to his workers for the service rendered
by them.

29. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

29
Acts Followed:
1. Workmen Compensation Act 1923 Sec 2(m).
2. Payment of Wages Act 1936 Sec 2 (VI)
3. Payment of Wages Act 1948

PAY SCALE

The monthly remuneration received by each of the
employees including system of compensation.




FOR WORKMEN

Scale of Pay:-
Grade Scale of Pay
W - I Rs: 4085-70-6885
W - II Rs: 4110-80-7310
W - III Rs: 4120-90-7720
W - VI Rs: 4160-100-8160
W - V Rs: 4185-110-8585
W - VI Rs: 4270-120-9070
W - VII Rs: 4325-135-9725
W - VIII Rs: 4420-155-9845
W - XI Rs: 4465-180-9865
W - X Rs: 5750-190-10500 *

* -Only in RED, Aluva
Fig No. 8

30. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

30


FOR OFFICERS

Scale of Pay:-
Code Designation Pay Scale
E - 0 Deputy Officer 6550-200-11350
E - 1 Officer 8600-250-14600
E - 2 Senior Officer 10750-300-16750
E - 3 Deputy Manager 13000-350-18250
E - 4 Manager 14500-350-18700
E - 5 Senior Manager 16000-400-20800
E - 6 Deputy General Manager 17500-400-22300
E - 7 General Manager 18500-450-23900
E - 8 Chief General Manager 20500-500-26500
E - 8(a) Executive General Manager 21500-550-27000
Directors 22500-600-27300
Chief Managing Director 25750-650-30950



Fig No. 9

31. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

31
e) Industrial Discipline:-

Disciplinary actions are taken in the HR depar tment.
Procedure for disciplinary actions is on receiving a complaint about a particular employee,
explanation is asked. Employee will give an explanation before 15 days. If the explanation is not
satisfactory he will be given a charge sheet and will also conduct a domestic enquiry. For this
purpose an enquiry officer is placed. After conducting the enquiry the report should be sent to the
disciplinary committee and if necessary certain punishment may also given.

2. INDUSTRIAL RELATION

Most of the disputes will be settled by the c ompany
and trade unions. If it is not cleared, they can approach to the government. The Trade Unions
active in IRE are:-
1. United Trade Union Congress (UTUC)
2. Indian National Trade Union Congress (INTUC)
3. All India Trade Union Congress (AITUC)
4. Travancore Mineral Workers Union (UTUC (B))
5. Indian Employees Rare Earth Federation (CITU)
6. Indian Rare Earth Mazdoor (BMS)
These are the recognised unions. There are so me
criteria for recognizing a union; the union will have 15% of employees as their members. Also
some participative forum is present; they are plants committee, safety committee and House
building committee. These committees will have the equal participation.
3. TRAINING & EMPLOYEE WELFARE

Training and Development:-

“Training is the act of increasing the knowledge and skills of an employee for
during a particular job”. Indian Rare Earth Ltd adopted various techniques of training for
increasing the mass productivity. The training program is restructured regularly in IRE. The
objective of training and development in IRE

32. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

32
1. Increase the efficiency
2. Increase the moral of the people
3. Reduce the absenteeism

Procedure for Training

1. Identifying the training needs
The company identifies the training needs through 3 ways: -
a. Organisation Analysis
b. Task Analysis
c. Man Analysis
2. Executives themselves will discuss the training needs
3. Charting out the training plan for a period
4. Based on feedback individual training is given

Training Methods

IRE has mainly four types of training methods.
1. In-house Training
2. External Training
3. Vocational raining
4. First Aid Training

The training method can be grouped on the basi s of level of
personnel in the organisation.

1. In-house Training: - Otherwise known as on the job training. In this
method expert from outside come to the organisation and give training.
2. External Training : - Also known as off job training is given outside the
organisation.
3. Vocational Training: - At least 20% of the employees should be trained
every year.
4. First Aid Training: - 30 people in one batch and give them training.

33. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

33
Employees Welfare:-

Two types of employee’s welfare are present in IREL. They are
1. Statutory welfare and
2. Non Statutory Welfare

Gratuity, Provident Fund, Pension, Canteen,
Medical Allowance are included in the statutory welfare. Festival Allowance, LTC, Recreation,
Tour Facilities are included in the non statutory welfare. Also the IREL give some kind of
allowances. They are

Shift Allowance
For employees working in shifts expect general s hifts will get an
allowance as follows
1
st
Shift (8 am to 4 pm) - Rs: 10/day
2
nd
Shift (4 pm to 12 pm) - Rs: 15/day
3rd Shift (12 pm to 8 am) - Rs: 25/day

Hard Shift Allowance

Since the plant handles sand for its production, it creates a dust in the
atmosphere. Considering this hardship in work every employees of Chavara plant gets Rs: 135/-
month as hardship allowance.

Uniform Allowance
Every employee is provided with two pairs of uni form in every year. Rs:
100/ month as washing allowances is granted for all employees.

Transportation Allowance
Every employee (except officers) gets Rs: 700/- per month as conveyance
allowance. Officers will get 10% of their basic pay as their Transportation Allowance.

Canteen
A round the clock canteen is provided for the em ployees. Company will
charge Rs: 6/day from each employee. The canteen is under the control of company.

34. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

34

Attendance Bonus
To increase attendance in the company gives annu al bonus of 12 days
wages for every employee who have minimum 268 days presence.

Production Incentives
Every employee gets an amount of Rs: 525/ year a s Production Incentive
from the profit.

Leave facilities available in IRE

Casual Leave - 15 days/ year
Sick Leave - 10/year (workers)
10 full/20 half (Officers)
Earned Leave - 33 days (It can be maximum of 300 days)
Surrender Leave - Each employee can surrender max imum 90
days/year or 75% of earned leave.

Other Benefits
750 ml milk/ day
4 pears soap/month
One Turkey or Towel/year
Shoes (1 pair)/ year
One Umbrella/year
House loan up to 4.5 Lakhs
Medical Facilities
Educational Allowances to workers children
Festival Allowance
Group Insurance Scheme
Holiday Facility
Leave Travel Concession (LTC)

35. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

35
4. TIME OFFICE
There is a full fledged office headed by Deput y
administrative officer. It follows a punch card system. Different allowances of employees are
given and it is mainly depend on attendance. It is providing according to the report from the time
office. The time office is working under the HRM department. The main function of this
department is to maintain attendance records, leave and service records etc. The various
allowances, attendance bonus all these records are maintained by the time office department.
Also yearly attendance bonus is given to the employees.

Attendance of 265 days/ year - 12 days salary
Attendance of 262 days/ year - 10 days salary
Attendance of 243 days/ year - 07 days salary

Structure of the time office as follows






















Fig No. 10

General Manager HRM
Dpty Admin Officer
Senior Assistant

Assistant Clerk

Attender

36. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

36
For recording attendance punching system follo wed here.
The attendance register usually keep in time office. The time office collects attendance from
concerned authority also and match with the punching system and avoiding swapping. Time
office has three centers for punching in convenience of employees. In mining area, in dredging
plant also keep mechanical punching machine. For the purpose of salaries the time office is
sending the records to the finance department. If the finance department asks for any clarification
they will do it.

TRANSFER POLICIES OF IREL, CHAVARA


Transfer is the movement of an employee from one
job to another without involving any substantial change in his duties, responsibilities. The
company is following 4 methods.

1. Production Transfer
:-
When a particular department or job is faced w ith the
pressure of works, its strength may supplement through from other departments. Such transfer’s
are generally made where any department is overstaffed and other is short of manpower.
2. Replacement Transfer :-
A replacement transfer is the transfer of a se nior employee
to replace with a junior employee or new one.
3. Shift Transfer:-
When units in shifts, employees are transferre d from one
shift to another on similar job.
4. Department Transfer:-
Transfer from one department to another within the plant or
with in the organisation.

37. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

37


2. MINING DEPARTMENT
:-

In IRE the raw materials for production process are collected through
mining process. The production process starts with the collection of beach sand from various
places. For collecting this beach sand IRE uses the following two methods: Sea Washing and
Dredging.

SEA WASHING
Raw sand is collected from sites where deposits are occurred due to natural beach
washing. Presently IRE owns two sites one at Vellanathuruthu/Ponmana and one at 132 mining
area. There is a heavy mineral deposit over a length of 22.5 Km. They are found over or coastal
belt having an average width of 800 meters. The sea waves deposits the minerals sand on the
beach line and it is collected. Then it is send to the mineral separation plant.

DREDGING
Presently IRE, Chavara have two floating dredges (Material Recovery Plant
(MRP)) at Karithura and Puthenthura. These plants are constructed with the help of Neumann
Equipments Private Limited Australia. Each plant was cost about Rs: 10 Crore as establishment
cost.

The plant DWUP used for the mechanised recovery o f minerals from the beach
sand. The DWUP consist of a floating dredging plant operating hydraulically and electrically
which could be moved from one place to another based on the requirement. The plant is floating
in an area having a water depth of 6 meters. The sand along with water in the form of slurry (a
mixture of sand and water) is pumped to the heavy Upgradation equipments. The equipment
consist of a series of transfer bin rotating screens called Trommer, Spiral Separators, Hydro
cyclones, pumps etc all being electrically operated. The DWUP can dredge about 40 to 60 tones
per hour. The raw sand having an average at 40% heavy minerals is fed to the floating plant and
updates it to 85 to 90% mineral content. The waste sand (Quarts) from DWUP is used for backfill
the dredged area.

38. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

38
DEPARTMENT STRUCTURE – MINING
































HOD
Section Head
Mining
In-charge Survey In-charge DWC In-charge DWUP
DWUP Operators Mining Personnel
Fig No. 11

39. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

39
3. PRODUCTION DEPARTMENT :-

The act of making goods and services is called production. In everyday
speech ‘Production’ refers to the act of creating something production involves the physical
conversion of raw materials into tangible goods.

In IRE raw sand is collected through mining proc ess .The sand is filtered
through spirals, cones and jigs to produce a bulk concentration of heavy drying, screening,
electromagnetic and electrostatic processes and used for separation. Minerals found in coastal
areas are collected either manually or mechanical means, productions starts from the mining
process.

DEPARTMENT STRUCTURE – PRODUCTION














HOD PRODUCTION
SH (Production) SH (MIS)
SH (Process Control) Shift In-Charge
Shift Engineers
Production Dept
Personnel
Fig No. 12

40. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

40


MINING PROCESS
The mining and processing of beach sand are achieved with a good mixture of
modern mechanical devices and manual labour. Beach sand is collected from the surface of a
depth of a meter with the help of dredgers. For a processing of beach sands, the difference in
electric conductivity, magnetic susceptibility and specific gravity of their constituents are taken
into consideration. The beach sand is treated by well gravity methods using spiral, cones and jigs
to produce minerals.
IRE collects raw sand in two different ways:
1. Sea washing or beach washing
2. Mechanical dredging

MINERAL RECOVERY PLANT
The mineral recovery plant consists of a floating dredging plant which could be
moved from one area to another. This is called floating mineral recovery plant. The plant is
placed in an area which has a water depth of 9 meters. The sand along with water is sucked into
the main unit. First the mixture is send to a storage tank called Trammel. Then it is sending for
separation. The waste sand and some quantity of water is pumped out. The mineral content is
pumped from the MRP to concentrate Upgradation plant. The MRP dredges about 40-60 tones
per shift.

CONCENTRATE UPGRADING PLANT (CUP)


The raw sand collected from different sources had different composition. They are
further upgraded using the CUP. In the Concentrate Upgrading Plant enriches the concentrate
from various sources to above 90% heavy minerals using spiral separators making use of gravity
techniques.

MINERAL SEPARATION PLANT (MSP)

In the mineral separation plant individual minerals are separated making use of the
following four properties of the minerals namely
1. Electrical conductivity
Electrostatic separation is used in electrical conductivity.

41. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

41
2. Magnetic Susceptibility
High and low intensity magnetic separators used.
3. Density Difference
Floater separation.
4. Surface Property
Froth floatation.

The concentrate from concentrate upgrading plant (CUP) having
uniform composition with above 90% heavy minerals content is dried using Fluidised Bed
Drier (FBD). This is then subjected to electrostatic separation using different type of
electrostatic separators. There by it is separated into two fractions namely conducting and
non-conducting fractions.

PRODUCTION CAPACITY OF CHAVARA PLANT


Ilmenite 15000 tones
Rutile 9000 tones
Zircon 14000 tones
Leucoxene 600 tones
Monazite 600 tones
Sillimanite 8000 tones
Zircon flour 6500 tones



ILMENITE
Mainly used in the manufacture of Titanium dioxide, a white pigment by sulphate
process also used in the production of synthetic Rutile and for the production of Ferro Titanium
products.
RUTILE
Rutile used for coating of welding electrodes and also for the production of
Titanium dioxide pigment by the chloride process and for the production of Titanium Tetra
Chloride for the production of Titanium metal and sponge.
Fig No. 13

42. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

42
SILLIMANITE
Sillimanite mainly used in the manufacture of high temperature refractory. It is
also used in ceramic industry.
ZIRCON
Zircon is used in foundries, ceramics and refractory. It is also used in the
manufacture of zirconium chemicals, metals, alloys etc.
ZIRCON FLOUR
Zircon flour is used in foundries for high temperature castings.

MONAZITE
Monazite is used for the production of Thorium and rare earth’s base products.

43. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

43
PRODUCTION PROCESS

























































30 T Bin Beach wastes Conveyors Screens
Primary
Aspirals
Middling
Cup Spirals
Seavenger Spirals
Waste Middlings Tail
Plant QIL Conducting
IRMS
CBMS ILMENITE
HTS
IRMS
Rutile IRMS
To NC Circuit
Floatex
Spirals
IRMS
Fig No. 14

44. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

44
4. QUALITY CONTROL DEPARTMENT :-


IREL Chavara has got ISO 9001: 2000 Quality Systems established for
mining, manufacturing and mineral products.
One of the primary functions of the quality cont rol department is to ensure
quality products according to customer requirements. They harness beach sand in
environmentally responsible manner to produce minerals and innovative value added products,
which are used to make novel products required by customers.
Secondly, they are responsible for maintaining c onsistant quality of
products to the satisfaction of the customers through quality management system
implementation. They also aim at further improvement of product, technology or process.
The quality control department is also responsib le for maintaining
consistency in quality of raw materials during the processing, intermediate and finished product
stages. They make use of chemical and mineralogical testing methods in each stage.
In addition to these functions this department a lso conducts research and
development activities to support flow shed development work and for solution to process related
problems.
DEPARTMENT STRUCTURE – QUALITY CONTROL

Fig No. 15
Deputy Manager
Chemical Laboratory

Section Head Q.C

Senior Scientific Officer

Scientific Officer

Deputy Scientific Officer

Attenders

45. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

45

FUNCTIONS


To ensure that raw materials, in process and finished products confirms to
specified requirements holding compliance with environment , health and
safety requirements.
Ensuring compliance to health, safety and environmental requirements

INSPECTION AND TESTING PROCESS DETAILS


Raw Sand:-
1. The DWUP and HUP output and tailing are tested for total heavy mineral
content as detailed in quality plan.
2. The raw sand feed to the QIL plant ie the dried HUP output is analysed as
per quality plan.
3. The raw sand being naturally occurring, the specifications are only
desirable values. The variations in quality of raw sand do not affect the
quality of final products. So no reduction of raw sand is resorted to, even if
the analysis results are not as for the quality plan.
4. These tests are carried out only to make proper adjustments of the process
parameters to set the final product of specified quality.

In-Process Inspection
:-
In-process inspection of certain intermediate fraction as detailed in the
quality plan are carried out as per quality plan. These process fractions are not rejected
even if the analysis results do not confirm the desireable specifications. The inspection is
only for subsequent adjustments in the process parameters.

Finished Products:-
1. The products under tests are identified by a y ellow board indicating the
date, shift and number of bags. Those products passed the tests are identified by a green board
indicating date, shift and number of bags and rejected are identified as red board indicating “FOR
REWORK”.

46. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

46
2. Inspection and testing of finished products ar e carried out and records in
the respective record as per quality plan. Only products confirming to the quality as detailed in
the respective quality plan are taken in to stock. Rejected products are maintained with
authorisation of HOD (Q.C). Inspection and test record clearly indicate whether the product is
accepted or rejected.

5. STORES AND DESPATCH DEPARTMENT
:-

The stores act as a store and supply chain, kee ping inventory of the
product produced on the hand and supplying requisite raw materials to the manifold department
on the other hand.
All the items in6 the IRE properly stored by this function area,
including finished product inventory. It stores furnace oil, machine parts, office equipments and
stationary etc.

DEPARTMENT STRUCTURE – STROES & DESPATCH

























Deputy G M
Manager Stores
Stores Officer
Clerical Staff
Worker
Stores Officer
Clerical Staff

Worker
Fig No. 16

47. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

47
Stores fall under two categories

1. Capital Items
2. Consumable Items

Capital items, which give return for long term revenue
items or a consumable item means that which are consumable only for a short period.
Procurement of items of capital nature is to be made only after the approval by the
competent authority duly verified by internal auditors with prior conclusion in the capital budget.
Stores action is responsible for arranging procurement of all items or purchase
requisitions shall from the basis for arranging procurement or other departments, complete in all
respects and duly approved by the controlled authority. Stores are purchased indigenously and
from foreign suppliers through the adoption it secure the most competitive tendering system is
adopted to secure the most competitive tendering, the most competitive rates and eliminate
chance of favour.
The worth of production in the plant is currently between 6-7 Crores. Once in
every 3 months inventory statistics is prepared and send to the head office in Mumbai. Stores
follow Bin card and Cardex System. This department has three major functions as follows

RECEIPT
:-
The consignment items are properly verified with the receipts and requested the particular
department to made inspection on each items.
STORAGE:-
The received items are stored in proper locations and preserve them until the issue. Each
item has its own Bin card. The quantity received, material issued, total remaining are noted in the
Bin cards.
ISSUE:-
The issue made in first in first out method. After the receipt of the material internal note
from the department, the issues are made and same is recorded in the Bin card.

INVENTORY CONTROLE
Under the stores department the inventory control function is done. If
excess stock is obtained, it is properly informed to the marketing department to promote sales
and if any shortage obtained it is properly informed to production department to increase the
production. Usually ABC inventory control methods is adopted in IRE Chavara for control of
inventories. The principle types of inventories are:-

48. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

48
Raw Material & Supply
Goods in Progress that is work in progress
Finished Goods

For reduction of inventories four steps are taken in the Stores and
Despatch Department. They are doing computerization, codification, standardization and value
addition. All the process in stores departments are computerised and inventory management
software is used for this purpose. Coding is given to all inventories. For this, alphanumerical
code is used. Material coding is help to realise what kind of inventories are stored. And location
coding helps to find out where it is stored. By the use of standardisation, physical verification of
inventories are to be done and to be check whether the invoice number and purchase order are
equal.

DESPATCH SECTION
Despatch Section controls the transportation of the finished products o the
outside company. When a customer made a complete settlement of money for purchasing of a
particular product from the company the marketing department placed a delivery order to the
despatch department. The despatch department then prepares an invoice and gave a copy to the
customer. This department also prepares gate pass and state government declaration sheet.

49. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

49

6. INTERNAL AUDIT DEPARTMENT :-


Chief General Manager is directly looking after the functioning of
Internal Audit Department. Manager (Internal Audit) is the head of the department. There are
internal audit officers and administrative officers other than accountants and clerks working in
this department.

Internal audit department is not regular depart ment in many of the
companies. But in IREL this department is holding special privilege of auditing in to every
accounting matters of IREL. It is functioning in accordance with finance department. It is
necessary to get audit approved from internal audit department for the finalisation of anything
concerned to accounts. The company management is approving all other accounts in the
recommendation of this department.

DEPARTMENT STRUCTURE – INTERNAL AUDIT

















Manager
Internal Audit Officer
Clerks Accountants
Fig No. 17

50. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

5
0
FUNCTIONS

1. Auditing all the financial transactions of the company.
2. Taking corrective measures to rectify audit ob jections.
3. Making report to Chief General Manager and Board of Directors.
4. Make sure that every deeds of finance department is in accordance with
the accounting policies of the companies.
5. To participate in the functioning of store purchase committee.
6. To check the legal validity of the financial matters of projects committed
by IRE Ltd.

All the relevant policies of the company are as the basic policies of
this department. Internal Audit Department is auditing the accounts quarterly and sending report
to Chief General Manager regularly.

51. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

51
7. RESEARCH & DEVELOPMENT DEPARTMENT :-


The company has a well equipped Research and
Development facilities to support flow sheet development works and for solutions to process
related problems. The laboratory is equipped with lab models of Magnetic Separator, High
Tension Separators, Wet Shaking Tables and Froth Floatation Equipment etc.

DEPARTMENT STRUCTURE – RESEARCH & DEVELOPMENT















FUNCTIONS

1.
New product development.
2. New compound development.
3. Selection & Evaluation of alternative method.
4. Testing of new products.
5. To analysis and assist plants in problem solving.
6. Ensure quality of raw materials and finished products.
7. Maintain Quality.
8. Research & Development attempts.
HOD R & D
Section Head
R & D Dept Personnel
Fig No. 18

52. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

52
The department has well mentioned quality obje ctives and
well practiced quality assurance, quality improvement program. The department uses
mineralogical testing methods for maintaining consistency in quality of raw materials, finished
products and work in progress. The checking of minerals quality is done on a batch basis.

8. PROJECT & MAINTANANCE DEPARTMENT
:-


This section is looking after the projects and maintenance
of technological aspects of affairs of the company. This is a section in which mechanical experts
are working on different projects. This section takes over the responsibility of various projects
taken up by IRE Ltd management. They are making efforts to expand the area of performance of
the company.

FUNCTIONS


1.
To carry out preventive Maintenance to ensure continuous capability
and to attend breakdown maintenance if any.
2. Projects on mining area of IREL.
3. Projects on technological development.
4. Project on quality assurance.

53. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

53
DEPARTMENT STRUCTURE – PROJECT & MAINTANANCE DEPART MENT



































Unit Head
HOD Maintanance
SH
HUP
SH
Auto
SH
Mech
SH
DWUP I
SH
DWUP II
SH
DWUP III
SH
Elec MSP
SH
Elec HUP
SH
Elec.
SH
MSP II
SH
MSP I
Maintanance Personnel
Fig No. 19

54. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

54
9. MARKETING & SALES DEPARTMENT :-

Marketing is a social process by which individuals and groups
obtain what they need and wants through creating, offering and freely exchanging products and
services of value with others. It is the art of selling products. Marketing department is
functioning under the control of General Manager of marketing department.
Marketing occupies an important position in the organisation of any business unit.
Marketing functions are not limited to the function of buying and selling but storage, risk bearing
and after sales services etc. marketing is a vital connection link between the producer and
customer.
The marketing section in the IRE is under the direct control of chief General
Manager and this section is headed by the deputy General Manager in his job. The marketing
activities in the company are indirectly linked with the sales section.
IRE has the monopoly in the field of rare earth products. IRE Ltd, Chavara is
engaged in the production of minerals such as Illuminate, Rutile, Zircon, Sillimanite, and Brown
Illuminate from naturally available beach sand products. It also produces value added products
like Zirflour, Microzir. On specific requirements of customers the company also supplies
Sillimanite powder by subcontracting. Among these Illuminate, Rutile, Zircon, Brown Illuminate
are categorized as “Scheduled Minerals” for which the customer is required to obtain license
from the Department of Atomic Energy (DAE) Mumbai for their purchase.
Off late, more stress was given as the marketing activities of IRE, by the
company, because of competition, which is growing in the international market and also in Indian
market. A new era has been put up in the company for this purpose.

The bye products of IRE are Zirflour and Monazite. They are mainly purchase by
the Kundara ceramics for the manufacturing of ceramics. The main customers of IRE are the
Government of India and other private company. The main foreign customers are USA, Canada,
UK, France, West Germany, Japan etc.

OBJECTIVES OF MARKETING DEPARTMENT


Maximum turnover
Maximum profit
Maximum customer satisfaction
Maximum customer relationship

55. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

55

The chief General Manager of IRE is having the control of topmost level in
marketing department of this unit. There are four superintendents and a clerk engaged in the sales
department. IRE Ltd is working under the administrative control of Department of Atomic
Energy. The head office does the pricing of products. The customers of IRE Ltd are mainly
heavy industries like plant, glass, refineries, ceramics etc for bulk purchases customer and
provided discount.

SALES AND DISTRIBUTION SYSTEM

Here the organisation has been enjoying monopoly. That’s the reason why they
don’t want to make a distribution network. Direct selling is the main system of organisation. The
customer primarily pays the full amount as demand draft (DD) in advance and then the company
gives the products.
For domestic sales, order are received as
1. Through head office
2. Directly from the customers
3. Transferred from the units of IRE

All (except Zirflour, Microzir and Sillimanite powder) are dispatched against
permits obtained after payment of prescribed royalty by IRE in advance to the department if
mining and geology, government of Kerala.
Starting with general condition for sales, majority of the customers place orders
directly with Chavara. Sometimes head office also fixes quota customers wise if necessary, for
the supply of minerals and intimates time to time. If all the formalities are completed delivery
instructions are given by the sales department to stores for delivery of the materials to the
customers.
Exporting

Exporting contract between the seller (IRE) and the buyer (customer) is finalized
at the head office and intimates Chavara regarding the export contract along with the copies of
agreement, purchase order, proposed loading schedule and many other specific instructions for
the execution of the order. Chavara sends samples and product specification to the customer if
required by head office/ buyer.
Exporting carried out through Neendakara but now its through Cochin port
(Bagged Cargo only) shipment through Cochin port is done by C&S agents appointed by seller.

56. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

56

Pricing
Pricing is a very crucial decision in marketing management. The objective of the
firm is to get maximum profit. This depends upon the correct decision in pricing. Pricing refers to
the process of fixing the price (money value) of a product or service; pricing is an important
function in marketing because it determines the sales volume and the amount of profit. A product
is acceptable to the customer when it is reasonable priced. A sound pricing policy helps to satisfy
customers and to yield profit. Determination of price is influenced by large number of factors
such as cost of production, degree of competition, nature of the product, pricing objectives and
policies of the firm etc.

Samples to the customers
Samples are sending to the customers on their request or as per the instructions
from the head office for their evaluation of sustainability for their requirements. Free samples are
send to the customers as per the following procedures.
Up to 500 Gms: head of the department (marketing) intimates section head (QC) to prepare
samples of required quantity along with the gate pass.
501 Gms to 1 kg: head of the department (marketing) prior approval from the unit head and
follows the above procedures.
Above 1 kg: head office approval with information to unit head and follows the above procedure.

Customer visit
Every quarter, 5 customers are selected for a visit to know prevailing market
conditions.

Customer feedback
Every year customer feedback questionnaires are circulated to the customers and
feedback is compiled for chalking and out suitable strategy for the future marketing.

57. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

57
The sales department maintains the following records

Contract review checklist for domestic sale.

Government of Kerala department of mining and geology and advance remittance and
corresponding permit register.


Quotations

Performa invoice

Payment registers

DAE license register

Priority registers

Delivery registers

Sales register

Shipping register

Daily statement of production , sales and dispatch

Quarterly statement regarding export

Monthly report to cabinet

Production, sale and stock of minerals (monthly)

Performa for submitting quarterly export performance to federation of Indian export
organisation


COB license

Geology permit register

C-form, D-form, form18 register

Price list of minerals

Statement showing production, sales and value (Quarterly)

Contract review checklist for exports

Cash receipts

Bank receipt voucher

Daily information to sales 26, pending orders of minerals (daily)

DD register

Gate pass

Enquiry/order/amendment from parties

Customer feedback questionnaires

Customer file

58. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

58

10. FINANCE DEPARTMENT :-
Business finance is concerned with the acquisiti on and
utilization of funds required to meet the financial needs of a business enterprise. Financing is the
process of planning, acquiring, utilizing and controlling the funds used in any kind of business.
Finance is the life blood of business. Every enterprise or company requires finance to start the
work and grow.
A company generally requires large amount of capital. A public company can
raise huge capital through issue of shares. In addition to share capital it can utilize retained profit
in the form of reserves. It can raise borrowed capital through denture and loans. Long term loans
can be obtained from financial institutions. Short term loans are available from commercial
banks.
DEPARTMENT STRUCTURE – FINANCE




















Chief General Manager
Finance
Dpty General Manager
Finance
Senior Finance Officer
Dpty Finance Officer
Assistants
Fig No. 20

59. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

59
SOURCES OF A COMPANY

1. On the basis of time.
2. On the basis of purpose or use.
3. On the basis of source of finance.
4. On the basis of risk.
Finance refers to money, cash or hand available for the operation of
business. Finance may do defined as the requirement of funds wanted. It is the life blood of
business activity. The business pulsates with life only through finance. Finance refers to money,
cash or hand available for the operation of business. Financial management will include
planning, organising, directing and controlling.
The main functions of this department are
:-

1. To collect all the receipts and make all the payments.
2. To record all the transactions and prepare the final accounts.
3. Maintain the accounts as per the provisions of the section 20(g) of the Companies Act
1956.
4. Provide depreciation at the rate prescribed in schedule 14 of the Companies Act 1956, on
a straight line method.
5. To account excise duty on goods manufactured when it is dispatched.
6. To ascertain the accrued gratuity liability of the company on the date of balance sheet.
7. To value finished goods at cost or market price whichever is lower, stock of raw
materials, spares and chemicals are valued at weighted average method.
8. Treat the claims against the company which are not admitted as contingent liability.

60. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

60
CHIEF GENERAL MANAGER


The finance department is headed by the Chief General Manager
(Finance). A Deputy General Manager (Finance) is there to assist the Chief General Manager in
the operations of the department. In addition to them the department consists of 3 senior finance
officers, 8 deputy officers and attenders.

AUTHORITY, RESPONSIBILITIES AND ROLES
:-

AUTHORITY
Approval of policy, objective and targets.
Approval of apex manual.
Defining responsibilities and authority of head of departments, management
representatives.
Authorizing various committees
Approval training programs of financial commitment.
Authorization of decision taken at review meeting such as safety and
environmental protection committee, environment management customer service
and complaint redeemed and protection meetings.

RESPONSIBILITIES
Overall responsibility for health and safety of IRE, Chavara unit.
Claiming the review meetings.
Responsibility of the head office from time to time.
Ensuring that unit has organized celebration including those related to health,
safety and environment through concerned department.
Providing resources for the implementation main tenance and continued
improvement of management systems (in consultation with HO required).

61. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

61
Implementation of directives received from HO / statutory agencies.
Ensuring smooth progress of project (including feedback of HO on the program).

ROLES
Ensuring smooth day to day functioning organisation through concerned HOD /
section head.
Role as head of the unit in the health, safety and environment related celebration.
Participation in emergency evaluation (Both mock / actual)
Compliance to safety related requirements including use of personal protection
equipments as a role model for others.

62. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

62
11. MEDICAL DEPARTMENT :-

An effective and efficient medical department is functioning in
IREL Chavara. Every family member of the employee is eligible for free attendance and
treatment in the dispensary. Cases beyond the scope of the dispensary will be referred to major
hospitals which are centered in Kollam and Karunagappally. The whole payment is such cases
are done by the company itself. The dispensary is working around the clock.
FUNCTIONS

1. To carryout medical examination of employees and their family members.
2. Examining compliance to environmental requirements.
Senior Manager (Medical) is the top most author ity of the Medical
department. Senior Manager is followed by a Section Head/Lady Doctor. The department
comprises of two Doctors, three Pharmacists, three Nurses/Compounders, Laboratory Technician
and an Ambulance Driver.
DEPARTMENT STRUCTURE - MEDICAL











HOD HRM
HOD MEDICAL
SH MEDICAL
Lady Doctor
Nurses/
Compounder

Pharmacist
Laboratory
Technician

Ambulance Driver
Fig No. 21

63. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

63
PROCESS INVOLVED IN MEDICAL DEPARTMENT
A. Out Patient Service:
a) Employees and their departments are provided free medical
services. For this each employee has been allotted a personal dispensary file in which name of
the dependants are included as per the family card issued by the welfare department. Proper
recording of the ailment, investigation and treatment of the employees and the dependants are
entered in the personal dispensary file. Unfit and fit certificate are issued by the medical officers
in the prescribed form for availing sick leave and for rejoining the duty after sick leave.
b) Patients who require specialist’s opinion/ de tailed investigation are
sent to recognised hospitals/govt. hospitals/ approved laboratories with a reference letter. List of
approved hospitals/ laboratories as approved by HO is maintained by HOD (Medical). Patients
are taken to recognised hospital only with the reference form issued by medical officer. In the
absence of company medical officer, patients are issued a temporary reference card valid for one
day by the duty Pharmacist/Nurse for immediate admission incase of emergency and within 24
Hrs the reference card issued by the medical officer is to be collected by the employee.
B. Occupational Health Service (OHS):-
Pre-employment Medical Examination:-
Normally recruited employees before joining a re
directed to undergo a medical examination by the medical officer. Medical examination is carried
out as per the pre-employment medical examination report. The pre-employment medical
examination report is send to the HOD (HRM) for implementing the recommendation of the
HOD (Medical).
C. Periodical Medical Examination:-
In accordance with Atomic Energy Regulatory Board (AERB)
periodical medical examination for all canteen workers and clarified radiation workers is carried
out once in a year and for other radiation workers and other general workers, it is carried out
once in five years. Employees are directed to HOD (Medical) as per the list notified by the
Administrative section. These who are exposed to high noise, loss of hearing bent are also
conducted and feedback is given to the concerned department.

64. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

64
D. Pre-retirement Medical Examination:-
Concerned employee is given intimation from administration
section at least two months before the date of retirement to carryout pre-retirement medical
examination with a copy to HOD (Medical). Based on this, medical examination is carried out
one month before the retirement of every employee and necessary advice is given to the
employee for his future health maintenance.

65. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

65
12. SECURITY DEPARTMENT :-
Security of the company assets and premises is vested in the hands
of the staffs of security department. The department is lead by Security Manager and he is
assisted by 6 Head Security Officers and 26 Security Guards.

DEPARTMENT STRUCTURE – SECURITY



















FUNCTIONS

1. To give security to the company and its assets .
2. To monitor the entry of employees and visitors .
3. According to ISO procedures they maintain the discipline of the
employees, their uniform etc.
There are 32 security personnel in total. The s ecurity department
also gives protection to company equipments in mining area. 7 persons are deployed at
Puthenthura, 7 at Vellanathuruthu and 16 at the plant itself.
Two major threats presents in IREL are sabotage and theft. To
prevent sabotage there is a control room and it accessible at every time. In case of emergency the
systems will automatically shutdown and emergency alarm will blow. At that time all the
employees are required to assemble in the assembly points. Another security problem faced by
IREL is theft. There is no clear boundary wall for the company. This may encourage persons to
take away company assets without permission.
General Manager
HRM
Manager Security
Head Security Officers
Security Guards
Fig No. 22

66. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

66

13. SAFETY AND ENVIRONMENT DEPARTMENT :-

In the present day industrial scenario all the industries had accepted
the fact that safely improves productivity.
IREL Chavara has always been in the forefront in ensuring safety,
welfare and better working environment to all its employees. Their safety slogan is
“Let everyday be a safe day”

DEPARTMENT STRUCTURE – SAFETY & ENVIRONMENT



SH Safety &
Environment
SH Fire Protection
S & E dept
Personnel
HOD S & E

Fig No. 23

67. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

67

MISSION AND POLICY OF THE DEPARTMENT


MISSION


The mission of IREL is to be a major supplier of beach sand minerals and rare
earth compounds in the domestic and international market, develop and produce chemicals of
strategic importance, value addition with due regard to resources utilization and safety protection.
Consistent with this mission, IREL envisages a safety and environment protection
policy that provides a safety working environment to prevent injury and ill health to its
employees. It also ensures environmental protection by minimizing environmental input that may
arise from its operations and provide appropriate environmental plans to maintain ecological
balance and above all recognizes the use for safety culture man organisation to enhance the
awareness and commitment of all employees to safety.

POLICY
IREL purpose to update and review the safety policy periodically taking into
consideration its industrial experiences advances in the technology and regulatory requirements.

ENVIRONMENTAL POLICY

IREL Chavara is committed to protect, conserve and improve the environment in
which it operates for the continued existence in the business throughout
Conservation of natural resources
Minimising pollution
Compliance to applicable environmental rules and corporate guidelines,
periodical health monitoring of employees and creation of environmental
awareness among employees, customers and suppliers.

68. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

68
SAFETY GUIDE
IREL Chavara follows strict safety guidelines, which are given in the company’s
safety guide. Safety team will update the safety guide as per the requirement to throw more clear
light on the processes as well as equipments engaged in the plant, including procedures to ensure
the safety of both men and machinery
There are Do’s and Don’ts enlisted in this guide and this will be quite helpful in
averting the slightest possibility of accidents.
SAFETY GUIDELINES

In order to achieve the policy objective certain guidelines are used some of them
are as follows.
CORPORATE LEVEL SAFETY

An officer of the rank General Manager to co-ordinate at the corporate office all
safety environment and training activities of various units and takes necessary
steps for effective implementation of this policy.
GM (S&E) assisted by three senior officers at the head quarters on each of the
safety, environment and training.
The corporate safety setup has been provided with adequate administration /
financial support for coordinating safety policy.
He liaisons with various outside agencies like Atomic Energy regulatory board
SARCOP health, physics division of BARC, DGM of mines safety, ministry of
environment and forest etc for fulfilling the statutory requirements.
He assesses the training needs for various areas and granges for different
categories of employees.
He interacts with safety teams / experts for carrying out safety audit / environment
audits and assessment of safety performance for award of shield etc.

69. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

69
UNIT LEVEL SAFETY SETUP
The head of each unit will be executive director / chief / GM.
He will be ex-office chairman of the plant level safety and environment protection
committee which will review the monthly safety status of the plant.
He will implement all the applicable statutory provisions of safety and
environmental control in the unit.
He will nominate senior level officer as safety and environmental control officer
who will look after the safety and environmental control aspects of the unit.
He will ensure that operating procedures are followed strictly and technical
specifications are not violated.
SAFETY AND ENVIRONMENTAL PROTECTION COMMITTEE


The term of members of the committee will be two years and the committee
members will be meeting once in a month.
The committee will organize safety day / environmental day / fire day and mines
safety week annually and hold competition among the employees relating to
safety and environment during the celebrations.
The committee will discuss the measures against the unsafe conditions and
practices in the mine / plant as pointed out in the report of workmen’s inspectors.
The committee will consider safety and health measures to be taken before
commencement of operations of any new electrical / mechanical equipment
proposes.
Summary of minutes of the meeting will be sent to the GM (S&E) regulatory.

70. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

70
STANDING ORDER FOR WORKMEN CONCERNING SAFETY
IREL standing orders for workmen also envisages the safety of the organisation
and relevant clauses.
PERSONAL PROTECTIVE EQUIPMENTS
It is divided into two categories
Personal protective equipment for the various parts of the body i.e. head, eye, ears,
face, hand, arms.
Respiratory protective equipment required when workers exposed to atmospheric
contaminants like dust, fuel, gases and chemicals let off in the air in the dangerous
concentration.

PROTECTION EQUIPMENTS USED ARE:
Head protective
Safety shoes
Safety belts and lifelines
Dust respirators
Eyes and face protection
Ear muffs
Aprons
Gloves
Respiratory protection devices

71. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

71
14. PURCHASE DEPARTMENT :-
The main function of purchase department is procu rement of
materials at competitive price. All items including real materials other than raw sand are
purchased by this department. In IRE Ltd the purchase department had prime importance.
Formalities of purchase

1. Float enquiry to the right source
2. Scrutinize quotation
3. Obtaining approval of the finance department
4. Release an order
5. Follow up receipt at the store
6. Assistance to give payment in time
Formalities of placing an order

1. Origination of intent
2. Tender enquires
3. Opening of tender on the data mentioned
4. Analysis of all tender
5. Technical evaluation of the tender
6. Selection of the best one
7. Negotiation with the party needed
8. Approval of the selected tender
9. Order placing
10. Follow up

72. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

72
15. CIVIL DEPARTMENT :-
Maintenance has a direct impact on everything tha t affects the
overall health and welfare of the organisation. A sound maintenance strategy should therefore be
considered a valuable tool used to assess equipment capability and the continuous improvement
efforts of asset performance.
Civil department consist of deputy manager (civil), two deputy officers and the
work force. They frequently monitor company structures and maintain them properly. In case of
new projects, the base infrastructure has to be erected by this department.

DEPARTMENT STRUCTURE – CIVIL











HOD (Civil)
Section Head
(Civil)
Civil Dept
Personnel
Fig No. 24

73. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

73
SWOT Analysis



STRENGTHS

Highly skilled managers and experienced workmen having excellent knowledge
and experience about mining and production process.
Constant Upgradation of technology.
A strong and symbiotic relationship between the top level management and the
lower level employees.
Technological collaboration with the Australian company, ROCHE, one of the
largest mineral technology providers in the world.
Abundance of raw materials in the company premises itself.
Support from government of India and the department of atomic energy.
High concern towards the employees and environment.

74. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

74



WEAKNESS

Mining problem.
Diminishing supply of raw sand.
The inability of the management to control effectively, the resistance raised by the
local people in form crises.
Excess number of civil workers.
High labour charges.
Due to monopoly promotional activities are less.
Decision making process is highly time consuming and complicated.
Shortage of power supply.

75. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

75



OPPORTUNITIES

High demand for products.
Growing demand for Titanium, Zircon, Thorium, Rutile, Ilmenite in international
market.
Faster growth rate of markets in Asian countries where extraction facilities are
limited.
The recent efforts to tie-up with other mining companies like KMML, Chavara.
The favorable state government policies like prohibiting the entry of private
companies into the mining sector.
As a strategically important company it is always backed by the central
government.

76. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

76



THREATS

Entry of private players such as TATA group into the area of black sand mining.
Over intervention of external political groups in company affairs.
Fluctuating in the value of currency which adversely affects the export income.
Increasing transportation cost.
Protect form environment activists.
Rapid technological changes in production process.
Changes in government policies.

77. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

77


FINDINGS


The employees were satisfied with the welfare policies which are in practice and the scale of
pay at present.
Majority of the workmen were well experienced and possess great amount of knowledge
particularly relating to the mining and production process.
The managers were overloaded with work but they perform well above the expectations.
The intervention by the external political parties continues to be a disturbance in formulating
labour policies.
The company has a strong commitment towards the society.

78. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

78


SUGGESTIONS AND RECOMMENDATIONS


IREL should take advantage of the growing demand for heavy minerals by increasing the
production.
The management should sustain the faith of the local people by constantly
communicating and explaining the company’s policies to them. The trust of the local
people can be ensured and sustained by constant interaction and communication with
them. The company can achieve them by undertaking more socially responsible activities.
This may be in the form of medical facilities running schools, assistance at the time of sea
erosion and trawling ban. They can also provide water and electricity supply to the local
people.
The company should try to minimize the external interventions of various political
parties.
The company must take full use of the favorable government policies at present.

79. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

79



CONCLUSION



IREL is one among well performing companies in Kerala, engaged in the process
of processing rare earth products available among the coastal belts. IRE is reaching new
boundaries with its performance. IRE was incorporated on 18
th
august 1950 as a private limited
company under the Indian company’s act of 1913 jointly by the government of India and the
government of Travancore Cochin. In 1951, IREL became a public sector undertaking and two
mineral separation plants, one at Manavalakurichi in Tamilnadu (1967) and the other at Chavara
in Kerala state (1970) were setup.
The organisation study at IRE ltd was an unforgettable experience. The
organizational atmosphere prevailing at IRE is not that of a public sector unit. The concern for
the environment and social responsibility are worth studying. The study helped in having a
practical exposure to real practice in organisation. The study provides insight into the functioning
and coordination of departments in an effective organization.

80. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

80
BALANCESHEET AS AT 31.03.2009

31.03.2009
(In Crores)
31.03.2008
(In Crores)
I. Sources of Funds
1. Shareholders Fund
a. Capital
b. Reserve & Surplus

2. Loan funds

Secured Loan
Unsecured Loans



II. Application of Funds

1. Fixed Assets
a. Gross block
b. Less Depreciation
c. Net block
d. Capital works in progress
e. Assets pending disposal





2. Investments
3. Deferred Tax Assets (Net)
4. Current Assets, loans & Advances
Current Assets
Inventories
Sundry Debtors
Cash & Bank Balance
Other current assets
Loans & Advances



8636.50
38,629.23


-
3,320.42

50,586.15



43,955.80
24,495.93
19,459.87
709.82
0.49

20,169.58


1.42
1603.98


6020.81
833.48
27281.30
1485.22
7577.76
43,198.57


8636.50
34,973.31


9.31
4,427.23

48,046.35



43,062.78
22,801.74
20,261.04
672.21
15.74

20,948.91


1258.51
523.34


5500.08
2641.61
23381.71
600.66
7103.19
39,227.25
Appendices

81. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

81

Less Current Liabilities & Provisions
a. Current Liabilities
b. Provisions

Net Current Assets
5. Miscellaneous Expenditure


5631.43
8908.35
14,539.78
28,658.74
152.38


6134.58
7893.95
14,028.53
25,198.72
116.79
Total 50,586.15 48046.35

82. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

82
PROFIT AND LOSS A/C FOR THE YEAR ENDED 31.03.2009

31.03.2009 31.03.2008
I. INCOME
Gross Sale
Less : Excise duty

Compensation for processing
Thorium
Increase / Decrease in Stock
Other Income

II. EXPENDITURE
Materials Consumed
Employees Remuneration
and Benefits
Manufacturing and other
Benefits
Interest
Depreciation
Capital expenditure not -
represented by the company -
Written off.


III. Profit before extraordinary items
prior period adjustments and
taxation.

Extraordinary items as prior
period adjustments

Profit before Tax
Provision for Tax


33,669.82
13.83
33,655.99

1,443.84
50.46
3,873.74


3,790.89
14,864.69

9,850.06

233.36
1,973.30
-


30,712.30

8,311.73



(23.68)


8,288.05
2,611.25


29,625.02
27.77
29,597.25

1,918.25
778.74
2,662.29


3,045.24
11,449.21

10,009.49

219.29
2,164.10
12.40


26,899.73

8,056.80



14,818.98


22,875.78
7,318.29

83. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

83
Profit after Tax

Balance brought forward

IV. Profit available for appropriation
Appropriation:-
Proposed Dividend
Tax on Dividend
Transfer to General Reserve

Balance Carried to Balancesheet

5,676.80

33,263.05

38,939.85

1,727.30
293.55
1,000.00

35,919.00
38,939.85
15,557.49

21,226.41

36,783.90

1,727.30
293.55
1,500.00

33,263.05
36,783.90

84. Organisation Study on IREL Chavara
Caarmel Engineering College, Pathanamthitta

84



BIBLIOGRAPHY






1. C.R. Kothari – Research Methodology methods and Techniques.
2. Prasad L.M – Principals and practice of management.
3. Kottler Philip – Marketing Management.
4. Rejimon.P.M – Indian rare earth is going to expand.
5. Rejimon.P.M – 50 Crores rupees expansion program in IRE.
6. IREL Broucher – Apex manual and departmental procedures of IREL.
7. http://www.indianrareearths.com
8. http://www.irel.gov.in
9. Annual Reports and Journals