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Swati Rana Narmada College of Management Bindra Patel Shree H.N.Shukla college of mgt.studies

The study enhance the theoretical knowledge but for fresher it is not sufficient without practical experience. The practical experience gives the exact meaning of the study by which we can know the functioning of an organization. The main objective of the practical training is to let the students know the work culture in an industrial environment and prevailing business practice and develop them on a practical basis as well as theoretical. Training gives meaning to the knowledge of student. Industrial training is the first step of student towards the giant world and to help students to prepare themselves for the future and apply their knowledge in practical life. It gives us an immense pleasure of being a part of GACL. This precious time is fruitful to correlate the theoretical concepts as well as the industrial practices. We have tried to highlight what is the whole system is all about and how it works?

Here is the golden opportunity for us to express our heartfelt gratitude to the persons, who have supported us, give us their precious time, opinions and suggestions to complete our training. We have great pleasure in expressing our deep sense of gratitude to Mr. S.C. Pathak, G.M. (Personnel), and Mr.Vinod J. Patel Sr.Manager HRD for giving us an opportunity to carry out our industrial training as a part of MBA programme. We are also thankful to the employees of GACL who have guided us and given us information and data for completing our project work. We are grateful to our College for providing us the opportunity to work with GACL, who have helped us in developing skills by providing exposure of various department so that we can understand the exact work culture in an industrial environment.

We, Swati Rana & Bindra Patel hereby declare that, this material is prepared on the basis of summer training at GACL for the period of 25-52009 to 5-7-2009.

We ensure about the authentication of the material and give guarantee that there will not be any misuse of the data. Data will utilized only for the academic purpose and will not be used for commercial or any other purpose.

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13.


Gujarat Alkalies and Chemicals Limited (GACL) was incorporated on 29th March, 1973 in the State of Gujarat by Gujarat Industrial Investment Corporation Limited (GIIC), a wholly owned company of Govt. of Gujarat, as a Core Promoter, company is listed in Mumbai, delhi and National Stock Exchange. GACL has two units located at Vadodara and Dahej , both in the State of Gujarat. It has integrated manufacturing facilities for Caustic Soda, Chlorine, Hydrogen Gas, Hydrochloric Acid, Chloromethanes, Hydrogen Peroxide, Phosphoric Acid, Potassium Hydroxide, Potassium Carbonate, Sodium Cyanide, Sodium Ferrocyanide. The Dahej unit also has 90 MW Captive Power Plant (CPP) for regular and economical power supply.

The Company commenced its operations in 1976 with 37,425 MTPA Caustic Soda Plant based on the then, state-of-the-art Mercury Cell process at its Plant which is situated 16 km North of Vadodara near Village Ranoli on the main Railway track route between Ahmedabad and Mumbai.

Right from the inception, GACL has been following the strategy of continuous capacity expansion in core areas. The first stage expansion of the Caustic Soda Plant raising the capacity to 70,425 MTPA was undertaken in October, 1981 followed by a diversification programme to produce 2000 MTPA of Sodium Cyanide in December, 1982.


In 1984, the second stage expansion to increase the capacity of Caustic Soda Plant to 103,425 MTPA was undertaken. Simultaneously, the Company undertook the diversification project for manufacture of 10,560 MTPA of Chloromethanes using Chlorine, a co-product of the Company and in 1991, the capacity of Chloromethanes production was doubled.

As power is the major input for production of Caustic Soda and constitutes about 65% - 70% of the cost of production, the Company alongwith other Corporations like M/s. GSFC, Petrofils Cooperative Ltd. and Gujarat Electricity Board promoted a gas based power unit in Vadodara under the name of Gujarat Industrial Power Company Ltd. (GIPCL) during the year 1985. As a promoter of GIPCL, the Company gets low cost power, as the plant is gas based and is depreciated.

Since production of Caustic Soda is highly power intensive, in order to reduce power cost and to eliminate mercury pollution, the Company during the year 1989 converted one of its Cell Houses producing Caustic Soda from Mercury Cell Technology to environment friendly Membrane Cell Technology, thereby eliminating the use of mercury. The Capacity of Caustic Soda was also increased to 132000 MTA.


The conversion of second Mercury Cell to Membrane Cell was carried out during March, 1994, thereby eliminating the total use of mercury from the Complex for production of Caustic Soda and increasing the capacity of plant along with this conversion to 170000 MTA including Potassium Hydroxide facility.

As part of this Membrane Cell Conversion Project, a new facility for manufacture of 16500 MTA of Potassium Hydroxide Lye based on Membrane Cell was also set up. The Company has further set up facility for converting part of this Caustic Potash Lye into Potassium Carbonate with a capacity of 13200 MTA.

In order to add further value to its products, the company had set up manufacturing facility for production of 11000 MTA Hydrogen Peroxide (100%) at Vadodara Complex during the year 1996 to utilize Hydrogen gas, which is a co-product from Caustic Soda Process.


In 1995, as a part of diversification programme and to meet the growing demand of its products in the State of Gujarat and nearby areas, the Company had set up a plant for manufacture of Technical Grade Phosphoric Acid with capacity of 26400 MTA (85% Phosphoric Acid) at a new location at Dahej, District Bharuch.

The Company also set up Membrane Cell based grass root Caustic-Chlorine Unit with a capacity of 100000 MTA at Dahej. Alongwith this, a captive 90 MW co-generation Power Plant was set up so as to ensure uninterrupted and low cost power for its captive operations.




DAHEJ COMPLEX P.O.PETROCHEMICAL-392130 Dist. BHARUCH, GUJARAT (INDIA) PHONE : +91-2641-256315-6-7 FAX : +91-2641-256220




Large Scale Organization

Messers Prakash Chandra jain & co. Chartered Accountants, Vadodara.

Messers Amarchand & Mangaldas and Suresh A. Shroff & co. Mumbai.

Messers Diwanji & Associate

Cost Accountants Vadodara.

State Bank of India Central Bank of India AXIS Bank Ltd. IDBI Bank Ltd. UCO Bank Ltd. Indian Bank HDFC Bank Ltd.

Sr. Name of the Director No. 1. Shri D. Rajagopalan, IAS Chairman 2. 3. 4. Shri S. Jagadeesan, IAS Shri G. C. Murmu, IAS Shri G. M. Yadwadkar Nominee of IDBI Ltd. Address K- 519, Sector - 20, Near Circuit House, GANDHINAGAR 382 020 Plot 543/2, Sector 8-B, GANDHINAGAR 382 008 K-204, Sector 19, GANDHINAGAR 382 019 A-5, Vayam, IDBI Guest House, Near IDBI Complex, Near Lal Bunglow, Off: C.G. Road. Navrangpura, AHMEDABAD 380 006 C-600 / New Friends Colony, NEW DELH 110 065 604-A, Cottage Land, Nationality Indian Indian Indian


5. 6.

Dr. Sukh Dev. Shri Jayant Narayan Godbole.



Shri Guruprasad Mohapatra, IAS Managing Director.

Plot No. 16, Sector 19 A, Nerul (East), NAVI MUMBAI 400 706 GACL House, 41-A, Urmi Society, Productivity Road, VADODARA 390 007



To continue to be identified and recognized as a dynamic, modern and eco-friendly chemical company with enduring ethics and values.

To manage our business responsibly and sensitively, in order to address the needs of our Customers & Stakeholders. To strive for continuous improvement in performance, measuring results precisely, and ensuring GACL's growth and profitability through innovations. To demand from ourselves and others the highest ethical standards and to ensure products and processes to be of the highest quality.

To remain the largest producer. To maintain highest quality & be the first choice of customer. To remain in the lowest production through captive power.

To have down stream value added products & flexibility of product mix for better margins & wide market.

To ultimate good to remain leader in the Chlor alkalies.

We are committed to utmost customer satisfaction, which is the driving force for progress. Adhering to international standards, with no laxity in any sphere, we are successfully a favoured supplier for our range of products. To consolidate this and to gain international credibility, we had obtained quality system certificate under IS/ISO 9001:2000, ISO 14001:1996 and IS 18001:2000.

GACL is an ISO certified company. ISO 9001-2000 is for proper maintenance of documentation. ISO 14001-2004 is for SHE policy, which includes safety, health and environment. ISO 18001-2000 is for occupational safety and health hazards precaution.

1) Technical Department:
Production Department Engineering Department Quality Control Department Safety & Environment Department Research & Development Department

2) Non- Technical Department:

Marketing Department Purchase Department

Export Department Dispatch Department Finance Department HRD Department Personnel Department Security Department Administration Department Time Keeping Office Secretarial Department MS Department (Management System)

As per the classification and the differentiation of the products, the products are classified in to SEVEN (7) different Groups. The Groups are Listed and described as below. 1) Caustic Soda Group:
Caustic Soda Flakes (NaOH) Caustic Soda Lye Caustic Soda Prills Sodium hypo chloride (NaOCl) Liquid Chlorine (Cl2) Compressed hydrogen Gas (H2) Hydrochloric Acid (HCl)

2) Caustic Potash Group:

Caustic Potash Flakes (KOH) Caustic Potash Lye Potassium Carbonate

3) Chloromethane Group:
Methyl Chloride (CH3Cl) Methylene Chloride (CH2Cl2) Carbon Tetrachloride (CCl3) Chloroform (CHCl3)

4) Sodium Group:
Sodium Cyanide (NaCN) Sodium Ferro cyanide [Na4Fe(CN)6 :10H2O]

5) Phosphoric Acid Group:

Phosphoric Acid (H3PO4) Calcium Chloride Flakes (CaCl2) Calcium Chloride Powder

6) Hydrogen Peroxide Group:

Hydrogen Peroxide

Bleach win

7) Other products: Dilute Sulphuric Acid Scale win (Water treatment chemical) Aluminum Chloride Anhydrous Poly Aluminum Chloride (The New Product)


Government of Gujarat promoted GACL in 1973. It's first Caustic Soda, Liquid Chlorine and Hydrochloric Acid Plants went on stream in 1976.

1982 1986 1987 1989

Commissioned Sodium Cyanide plant with a capacity of 2000 TPA. GACL went in for a diversification project to manufacture Chloromethane. Commissioned Caustic Soda Flaking unit with a capacity of 26400 TPA First revamp to energy efficient and environment friendly Membrane Cell technology.


Commissioned Sodium Ferro cyanide plant (100 TPA) based on in-house Research & Development. Converted balance manufacturing facilities to Membrane Cell & expanded its Caustic Soda capacity to 153500 TPA.


Expanded caustic flaking unit to 53000 TPA. Commissioned caustic potash plant with a capacity of 16500 TPA.


First certification IS/ISO 9002:1994 . Phosphoric Acid Plant started production at Dahej.

1996 1998 2000 2001 2003 2004 2005

Hydrogen Peroxide plant commissioned. Commissioning of 300 TPD of Caustic Soda & 90 MW power plant at Dahej. Commissioning of Caustic Potash/Flakes, Vadodara. Increase in H2O2 Capacity to 12540 MTA. Up gradation of ISO Certificate from 9002:1994 to 9001:2000. ISO 14001:1996 Certificate for Vadodara Complex and Dahej Complex. Commissioning of Calcium Chloride plant at Dahej. IS 18001:2000 Certificate for Vadodara Complex and Dahej Complex.

Date wise Awards received by GACL:

Sr. No. 1.

Date of Receiving

Particulars Bleach-win Eco-Friendly textile bleaching Process for Hand Processing Sector Vadodara unit: National Level 2003 at National Textile Research Association Conference Greentech Safety Silver Award 2003-04, Dahej Unit: National Level Greentech Gold Award for Environment Excellence 2003-04 for Dahej unit: National Level Greentech Silver Award for Environment Excellence 2003-04 for Vadodara unit: National Level

26 February 2004

2. 3.

21 June 2004 04 November 2004 04 November 2004


5. 6.

14 December 2004 18 January 2005


18 January 2005

National Energy Conservation Award 2004: National Level (Chlor-Alkali Sector) Dahej unit Certificate of Honour for Safety Performance 2003 from Gujarat Safety Council for Dahej unit Certificate of Appreciation for Safety Performance - 2003 from Gujarat Safety Council for Vadodara unit Merit Award for ICWAI 2004 Institute of Cost & Works Accountants of India for Vadodara unit: National Level Greentech Gold Award 2004-05 for Safety Excellence for Vadodara unit: National Level Greentech Silver Award 2004-05 for Safety Excellence for Dahej unit: National Level AMA-Metrochem Outstanding Manager of the Year Award 2005 Green Tech Environment Excellence Gold Award 2004-05 for Dahej Unit Green Tech Environment Excellence Silver Award 2004-05 for Vadodara Unit IMEA-2005 Award for excellence in Housekeeping & Effective Deployment of QMS National Energy Conservation Award 2005: National Level (Chlor-Alkali Sector) 1st prize (Vadodara unit) & Merit Certificate awarded (Dahej unit) by Honble President of India. Certificate of Appreciation & Honour for Safety Performance for Vadodara unit & Certificate of Honour for Dahej unit from Gujarat Safety Council for the year 2004 First Prize Winner In Category C for Chemical Process Industries for House Keeping by Baroda Productivity Council for the term 2004-05 Recognition by the Institute of Secretaries of India (ICSI) considering GACL in the list of Top 25 Companies for its National Excellence in compliance of law, ethics and best management practices in the field of Corporate Governance for the year 2005


12 March 2005


12 May 2005

10. 11. 12. 13. 14.

12 May 2005 16 July 2005 22 October 2005 22 October 2005 09 December 2005 14 December 2005



15 December 2005


28 December 2005


13 January 2006


24 February 2006


03 March 2006


06 March 2006


03 April 2006

CFBP Jamnalal Bajaj Uchit Vyavahar Puraskar 2005 Award has been received by Shri V.L. Vyas, Company Secretary & DGM (Legal), GACL Quality Council of India, Ministry of Commerce & Industry, Govt. of India has awarded Consolation Prize for the case study submitted by GACL on Economics of Quality for the year 2005-06 IMC Ramakrishna Bajaj National Quality Certificate of Merit 2005 in Manufacturing Category Award was received by Executive Director, Shri C.S. Mani in Mumbai FGI (Federation of Gujarat) award for Excellence-2005 in the area of Environment Preservation & Pollution Control for Dahej Unit has been received by Shri K. P. Buch GM (F) Greentech Safety Gold Award 2006 in Chemical Sector for Vadodara unit was received at Hyderabad Greentech Safety Silver Award 2006 in Chemical Sector for Dahej unit was received at Hyderabad Certificate of Appreciation from TERI Corporate Environmental Award 2004-05 Indian Society for Training & Development (ISTD), New Delhi Certificate of Merit for Innovative Training Practices: National Level Greentech Silver Award for Environment Excellence 2006 for Vadodara & Dahej unit: National level Safety Innovation Awards 2006 by Institute of Engineers SCOPE Meritorious Award for Good Corporate Governance 2004-05 National Energy Conservation Award 2006: Certificate of Merit awarded (Vadodara unit) by Honble President of India.


08 April 2006

24. 25.

08 April 2006 26 June 2006


01 July 2006


31 August 2006 06 September 2006 08 November 2006 14 December 2006





15 December 2006


23 December 2006


05 January 2007

34. 35.

21 February 2007 22 February 2007


26 May 2007


02 July 2007


14 December 2007


20 February 2008


09 April 2008


14 December 2008


23 January 2009

Gujarat Safety Council Certificate of Honour & Runners Up Rotating Shield for Baroda Complex & Certificate of Honour for Dahej Complex. Recognition by the Institute of Secretaries of India (ICSI) considering GACL in the list of Top 25 Companies for National Excellence in compliance of law, ethics and best management practices in field of Corporate Governance for the year 2006 AIOE Industrial Relations Award for 20052006 in the field of Industrial Relation, Social Security and Promoting Bi-partism by Honble Minister of Labour & Employment, Mr. Oscar Fernandes. Amity Corporate Excellence Award by Amity International Business School Greentech Safety Gold Award 2007 in Chemical Sector for Vadodara unit was received at Mumbai Runner up for Good House Keeping in Category of Chemical Process Industries and winner of Rotating Trophy for the year 2006-2007 by Baroda Productivity Council. 3rd National Award for Excellence in Cost Management 2006 for Manufacturing unit in the category of Public sector by Institute of Cost & Works Accountants of India (ICWAI) received from Shri Prem Chand Gupta, the Honble Minister for Corporate Affairs, Govt. of India. National Energy Conservation Award 2007: National Level (Chlor-Alkali Sector) 2nd prize (Dahej unit) by Honble President of India, Smt. Pratibha Patil Amity Corporate Excellence Award by Amity International Business School received by Dr. H.B. Patel, CFO Greentech Safety Silver Award 2008 in Chemical Sector (Baroda unit) received by Shri B.C. Chokshi National Energy Conservation Award 2008: National Level (Chlor-Alkali Sector) prize (Baroda unit) and Merit Certificate (Dahej unit) Safety Performance Award 2007: Shield and Certification of Honour received for working of more than 30 lacs accident free hours


25 November 2008


24 May 2009


Expected in July 2009

ICSI Corporate Governance Award 2008: Award received for Excellence in Corporate Governance from Institute of Company Secretaries of India (ICSI) BMA Business Excellence Award 2008-09: 1st Prize, Shield and Certificate of Appreciation (Baroda unit) for Business excellence during the year 2008-09 Chemexcil: 1st Award for outstanding Export Performance for the year 2005-06 (Baroda unit)



GM (P)





DG M (F) (D)

DG M (F) 2 (B)



C M (P) M P&A (D)


M (P)


M P&A (D)



ED (D)






ED (R)












DGM (M)2

DGM (I)3

DY.M (C)

CM (E)2



The 5 S model of GACL for obtaining better & improved results

IMPLIMENTATION OF 5 S CONCEPTS RESULTED INTO: A neat and clean factory Higher productivity Reliable deliveries Improved safety Higher quality Meet deadlines Lower cost Constant Growth Profit Maximization


Taking into the considerations the aspects of the global warming and the need to address to the cleaner and greener environment, the logo of the company Gujarat Alkalies and Chemicals Limited, Vadodara has been conceived to represent a responsible corporate. Keeping the importance of the rising issue of the pertinent to the environment, GACL have designed a logo that would reflect the companys mission to keep earth green. The abbreviated GACL goes in different fashion, G represents, Globe, which encompasses the vision, mission and objectives that the corporation tries to achieve. A represents The core competence of the company as a manufacture of Alkalies and related chemicals. PROMOTING GREEN TECHNOLOGY, retries GACLs motive to envision a verdant earth and a clean environment. The Green Attitude of company addressing the aspects of global warming.

The colors Blue and Yellow reflect, the rising temperatures can adversely affect some regions with excessive rainfall while some others with heat waves and drought.



Single largest caustic soda producer in the country coin a capacity of 27000 TPA having industry share of 13.75% Leader in chlor-alkali industry Integrated down stream plants In house research and development Proximity to raw material source and market Excellent industrial relations Dedicated man power The co. has been awarded ISO 9001:2000 CERTIFICATED from 20th nov. 2003. Low cost power from GIPCL Baroda.

WEAKNESSES: Highly power intensive products Companys products are in commodity group and thereof the prices are
purely market driven The supply of natural gas for the power varies depending upon availabililty.

Foreign market the demand for the co.s products in foreign market is high therefore GACL has opportunity to gain share market by exporting its products to foreign countries. Excess capacity in power plant will help in setting up down stream projects for increasing the capacity of caustic soda production. Raw material for other industries. Antidumping Duty.

THREATS: The chlor-alkali industry is cyclical in nature. The industry has forced with over capacity in the country. Dependence on the performance of the consuming sectors. Threats of impacts of slow Indian economic growth. Highly competitive market for the products of the company.




Induction is a systematic and planned introduction of employees to their jobs, their co-workers and the organization. Inducting is a technique by which a new employee is rehabilitated in to the changed practices, policies and purpose of the organization.

The process of induction in GACL is carried out for new incumbents. Induction is necessary for new entrants to have better orientation. They are giving them requisite exposure of the companys business and

functional/responsibilities of various departments is given to them.

They are giving training to new incumbents as per following: In case of Management cadre trainees, they are fresh coming from the college and joining our organization without any experience. They only possess requisite technical/functional skills. They have to be slowly introduced with the culture of a business unit which is very different than college environment. They are giving them companys exposure for 25 days as they are joining in industrial environment which is different than college environment. They can understand the work culture and functions of various departments so that it will help them to develop an understanding of the functioning of a business entity as a whole. Their training is kept for 25 days as they are going to absorb in Management cadre on completion of their training period. In case of trainees other than Management category (commercial/technical), we are giving them companys exposure for 05 days to get fair idea of companys business area and acquaint themselves with the personnel of various departments such as Personnel, Security, Safety, etc. with whom they are required to interact. In case of regular employees, they are giving them companys exposure for 05 days keeping in mind that they already have some work experience in industry and they are acquainted with the rules and regulations prevailing in the industry. We are giving them exposure of companys business and acquaint themselves with the personnel of various departments such as Personnel, Security, Safety, etc. with whom they are required to interact. Company is arranging plant visit of Baroda & Dahej for all the new entrants. In case of senior executives of GM and above level, they will be introduced with EEC Members and will have auto exposure through discussion

as they have rich experience from outside industries.


Training refers to the process of imparting specific skills. Training is an attempt for continuous improvement of present and future performance of employees by increasing an ability to perform through learning.

Its companys endeavor to recognize the value of its human resources for their growth. The company is committed to provide adequate opportunity to employees to enrich their knowledge, skills, and attitudes contributing to steady growth of the company and feeling proud of working for the company through meticulously identifying needs for employees to upgrade their knowledge, sharpen skills and improve attitude for improving performance at their present and future functions and importing such training to employees, after assessing their capabilities and potential. Training is a function of learning while working. It is a on-going process of learning. We have implemented the training process for our employees by giving them different types of training such as

Technical/Functional Training Operations/ Maintenance Related Finance or Non Finance

Exposure to Computer Energy Conservation Behavioural/General Training Good Housekeeping Practices Managerial Skill Development Supervisory Skill Development Mental And Physical Health

_ Soft Skill Development

Safety/ ISO Related Training Safety Related Fire-Fighting Refresher Programme for IS/ISO Series

Training Process:
Identification of Training Need
Distribution of Identification Training Need Forms to Various Departments in Feb/Mar every year On receipt of filled forms, we enter data on online system. To get data for various programs identified by employees for preparing annual training calendar.

Annual Training Calendar

Calculation of Annual Training Programs are prepared on the basis of Identification of Training Need Forms submitted by employees in consultation with Training Co-Coordinator/HOD i.e. one training program for 25 Identification Forms of Employees for particular training program.

Monthly Schedule of HRD Programmes

Monthly Planner is prepared on the basis of Annual Training Calendar.

Distribute monthly schedule and nomination forms to various departments.

Nomination for Programme by Respective Department

Receipt of Nomination Forms from various departments nominating the participants from their respective department.

Nomination for Programme from HRD

Online Nomination of Participants by HRD Department from identification of training needs by employee/HOD From the nomination forms received from respective department

Department wise Employees Training Records

Training Attendance Form (1 Copies) 1st Copy HRD Department for Record

Programme Evaluation
To obtain participants views about the performance of Faculty To obtain suggestion of participants.

External Training Programme

Receive Brochures from Various Training Institutions Get Recommendations from HOD of concerned departments and HOD of HRD and put up the recommendation note for approval of MD. After Approval HRD Dept. issue a letter to concerned Training Institute (5 Copies) 1st Copy Concerned Training Institute 2nd Copy Finance Department for Payment 3rd Copy Time Keeping Office for Attendance 4th Copy Concerned HOD for Record 5th Copy Office Copy

Other Training Programme Unpaid Training

For Fixed Period Like Industrial Training, Summer Training etc.

Plant Visit
For Students One Day Visit


Public Relations Time keeping office Recruitment Selection Performance Appraisal Welfare Corporate Social Responsibility Union Safety & Environment


Manpower is the real strength of any organization. So in GACL, The total manpower strength includes both management & Non- Management Category.

Management Level Non- Management Trainees & contractual

392 employees 435 employees 100 employees

Management Level Non- Management Trainees & contractual

151 employees 441 employees 108 employees

Thus, the total manpower strength at GACL is of 1627 employees.

The industrial corporate communication is a planned, deliberately and with sustained effort on the part of an individual or institution, to communicate the vision, mission, goals, actions which the organisation takes towards its public, in order to arrive at mutual understanding. As for this wing of the PR, it provides support to every department in their communication efforts.

Every person in the organisation is a PR officer, because in some way or the other these individuals reflect the image of the organisation to the outside world. So this department guides alll the people to help their own department in their activities. For e.g. marketing department is helped in development of the advertisement, finance department is helped with the presentation that itll have to show to the bank and other investors etc. Thus PR department is a consultant helping then how to do it.

This department comes into play when the company decides on the image, logo, name or even punch lines. This is to assert to the public that the

company has a better edge over competitors in many aspects. The companys image that is established is to be leader in chlor alkali sector.

GACL, on 4th may unveil its new logo. In these process major activities of the PR was involved. The company also has a corporate song, written by employees. All this is to harness in the individuals a sense of belongingness and cohesiveness.

The various tools for PR are: Annual reports Advertisements Trade fairs Seminars Direct mails Corporate brochures Product brochures Films Media relations Events As for GACLs advertisements, an agency has been hired in baroda that looks into development of these new ads.


Time keeping system is one of the important functions in any company. Time office maintains attendence & leave records of all the employees/ trainees/ apprentice and also looking after the welfare activities for the same. The shift system at GACL is as follow:

General shift Morning (1st shift) Afternoon (2nd shift) Night (3rd shift)

8:30 am to 5:15 pm 6:00 am to 2:00 pm 2:00 pm to 10:00 pm 10:00 pm to 6:00 am

This department looks after the following particulars:

Wages and salary administration Attendance Posting of various details for regularising attendance Salary statement details for payment of salary/ stipend

Canteens coupons amount deduction/ canteen allowance payment Leave records Supply of contract labours as & when required by departments To fill up various forms under various labour/ industrial laws Issue of short call notices (matters of disciplinary action)

Leave record and nature of leave Privilege leave Casual leave Sick leave Accident leave 01 PL is granted on completion of 11 days Yearly 12 days Casual Leave Yearly 10 days Sick Leave Minimum 1 day and maximum 90 days or it may extend as per approval given by MD 6 days leave for family planning Operationin case of wife or employee undergo for operation As per management approval as & when required for participating in tournament Two hours in a calender month for one time

Special leave

Leave for sports

Short leave

All leave is applied on leave card only except short leave. Short leave is aplied on short leave form.

All employees/ trainees/ apprentice/ have to punch their own punching card while entering and leaving the plant/ office.

Recruitment involves attracting and obtaining as many applications as possible from eligible job-seekers. Every organization regardless of its size, product or services must acquire right no. and types of people necessary to ensure the continues operation of organization. applicants who are available and qualified are acquired by recruitment. In another words, recruitment is linking activity bringing together those with jobs to fill and those seeking jobs. GACL mainly adopts basically two sources of man power: 1. 2. Internal External

In the internal sources, vacancies are filled by transfer & up gradation from other department to the required one. In GACL the external sources are more preferable as it can provide wide range of selection for the particular job. GACL mainly prefers the following external sources such as :-

1. 2. 3. 4. 5. 6.

advertising recommendation employment exchange private concerned institution through campus visit unsolicited applicants.

Main procedure

Identify the requirement Scrutinize it and if justifiable then put up for MDs approval On receipt of approval, issue office orders regarding creation of post Prepare the advertisement draft and put up the same to concerned HOD for his consent and then prepare advertisement for publication Receive application Classify & screen the application as per the advertised norms. In case of overwhelming response Management can raise the advertisement norms and in case of poor response Management can reduce the advertisement norms Sending interview call to the eligible/successful applicant

Selection is the process of differentiating between applicants in order to identify and hire those with a greater likelihood of success in a job.

Basic procedure of selection:

Preliminary Interview Selection Tests Employment Interview

Reference and Background Analysis Selection Decision by Selection Committee/Competent Authority Physical Examination Job Offer Reporting

Scrutinization is done by personnel department on the basis of advertisement norms such as - Age - Qualification - Experience Further scrutinization is done by respective department as per the response received in lieu of our advertisment. SELECTION COMMITTEE Minimum 3 persons required.

Representative from Personnel, Finance and from respective department in case of selection of non-management category. In case of Management category employees selection, outside expert is invited from other Company/Institution.

Performance Appraisal offers competitive advantage to a firm by -Improving Performance, -Making Correct Decision, -Ensuring Legal Compliance, -Minimising Job Dissatisfaction and Employee Turnover, And ensuring consistency between organizational strategy and behaviour.


Department send performance appraisal forms to all department heads in January every year. Obtain performance appraisal forms duly filled and reviewed by the departmental head within a month. In case of delay in submission of forms by other departments, write them reminder. In case of adverse remarks/unsatisfactory performance, Personnel Department will communicate the concerned employee about his adverse remarks/unsatisfactory performance through departmental head. In case of adverse remarks/unsatisfactory performance and inform him for improvement

in his performance. He may be punished by stoppage of increment/promotion, etc.

Welfare means faring or doing well. It is a comprehensive term, and refers to the physical, mental, moral and emotional well-being of an employee. AT GACL GACL provides welfare facilities as under Good canteen facility Uniform Safety items (safety shoes, helmet, safety glasses, safety hand gloves), Raincoat, Gumboot, etc. Medical facility Sports Activity


Corporate social responsibility (CSR) is a concept whereby business entities consider the interest of society by taking responsibility for the impact of their activities on customers, employees, shareholders, communities and the environment in all aspects of their operations. According to perception of World Business Council, CSR is a continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce, their families as well as of the local community and at society at large. CSR is a multi layer concept, which relate to economic, legal, ethical and philanthropic responsibility.

GACL has adopted and documented a policy on CSR where it has deciphered its role, responsibilities and application towards integrating social and environmental concerns of its stakeholders and a public at large. The company has adopted and documented a policy on social responsibility and undertakes community development activities in and around the rural areas situated in Baroda as well as Dahej complexes. The community interest and representatives of those interests are identified with the direct and indirect involvement of the company. The community interest and the stakeholders are identified through an NGO, called SVADES (Society for Village Development in Petrochemical Area) for more than a decade, which is a collective endeavor that binds the industry and rural mass together towards an effective social-economic development surrounding in Baroda complex of the company. The company has a well designed and well developed disaster management plan within the company and to surrounding industry, either in the form of providing risk information to the community or to respond in case of any emergency, as a part of its social responsibility. As a part of disaster management programme, to create awareness about the immediate and timely actions to be taken at the time of disaster like gas leakage, accidents etc., mock drills are conducted. Booklets on safety giving dos and donts and safe handling of chlorine are distributed to residents of nearby villages on a regular basis. Afforestation programme in and around both the complexes of the company, (for environmental protection) thus minimizing the global warming scenario. Promoting and sponsoring activities in the areas of safety, health and environment, education, sports and cultural activities. The company has evolved and implemented effective programme based on adherence to social values such as undertaking Clean Development Mechanism (CDM) project to reduce carbon and green house emissions.


Unions are voluntary organizations of employees, employers formed to promote and protect their interests through collective action. GACL Employees Union is constituted by GACL employees only and not affiliated with any other union. The employees of non-management cadre are the members of Gujarat Alkalies and Chemicals Employees Union. The election of the union is held once in 3 years and the members of the union are elected by voting of GACL employees who are members of the union and elect president, vicepresident, treasurer, secretary, joint secretary and the elected members are discussing the problem of employees with management and resolve the issues.


Companys commitment to safety and preservation of environment has been encompassed in its Safety, Health and Environment (SHE) Policy. The Company has achieved a new record of more than 1767 Accident Free Days at Vadodara on 26/05/2008. We have implemented elaborate Environment Management System (EMS) and Occupational Health & Safety (OH & S) plan and had embarked on its continual improvement.

Company continues its emphasis on safety awareness for its employees, contract labourers, drivers of vehicles handling our products and among villagers in neighbourhood of our plants. Bureau of Indian Standards (BIS) has granted accreditation of ISO 9001:2000, ISO 14001:2004 and IS 18001:2000 (OHSMS) to Company. Adequate steps have been taken for Pollution Control, Green Belt Development besides due compliance with statutory requirements for the protection of environment. At both Vadodara and Dahej Plants, green belts have been developed and maintained in with plantation of about 1,00,000 trees of different varieties. Green lawns also have been developed and maintained in 30,000 M2 areas in the plant. New facility for solid waste disposal is completed with 24000 M3 capacities. Company has spent Rs. 80 lacs towards creation of new facility under Hazardous Waste (Management & Handling) Rules 1989. A recharge bore well and check dam have been made for harvesting rainwater to effectively recharge ground water table every year. Good rains during consecutive last two years have helped substantially in raising the ground water level in the surrounding areas. The canteen and garden waste is being converted in to best manure through vermin- composting facility on regular basis.

The GACL Baroda complex comprises of two separate complexes i.e. Caustic Soda and Sodium Cyanide Complex. The Caustic Soda Complex is spread over an area of about 50 acres. The Caustic Complex houses 3 plants viz. Caustic Soda Lye, Hydrogen Peroxide and Chloro Methane Plants.

The Sodium Cyanide Complex is spread over about 10 acres on Nandesari Road where Sodium Cyanide and Poly Aluminum Chloride Plants are housed. Both the Complexes at Baroda are covered by Perimeter wall of atleast 12 height with an additional deterrent of continuous overhead barbed wire fencing and 6 Watch Towers (4+2). The entire perimeter is fully illuminated with adequate lights to give proper visibility from a distance. The Dahej Complex is spread over vast area of 260 Acres where 04 plants namely Caustic Soda, PAP, Power and Poly Aluminum Chloride plants are situated. SECURITY FUNCTIONS Round the clock watch for ensuring security of plant and property. Company staff deployed at important posts and monitor movement of Trucks/Tankers. Entry/Exit of contract labors/material permitted only after security checks. To keep watch on periphery and watch tower area under supervision of company Security Officers and Supervisors. Surprise checks are carried out by Senior Officers during night on random basis. Traffic management and control in emergencies. Essential documents of trucks/tankers as per RTO & Safety norms are checked. Computerized data recording of product vehicles. Computerized photo pass system for Visitors. Access control for Men and Material is in place. Management of security during events such as AGM, Cos Day celebrations, Republic Day etc. FIRE FIGHTING & MAINTENANCE OF FIRE PROTECTION SYSTEMS Looking after fire protection functions of the company. Regular drill practice of Fire Staff to keep them in a constant state of readiness for emergency situations.

Regular maintenance of fire protection systems of the plant. Joint exercise with CCR and other industries. Drills and Competitions to bring awareness to employees and men. Training & Skill development of Fire Staff.

TRANSPORT FUNCTION Ensure smooth transportation of Cos staff/Officers. Quality maintenance of Cos vehicles with Cost Control. Safe, Secure, Comfortable and timely transportation of staff by contract buses and light motor vehicles. VIGILANCE FUNCTION Keeping strict vigil over general activities. Collection of relevant information and keeping watch on surroundings. Maintaining close liaison with relevant Government Agencies, Police and near by Industries. INDUSTRIAL FIRE SAFETY Owing to the rapid growth of industries, complexities of fire risk have increased enormously. Incidents of such fires not only result in huge loss of property but also cause dislocation of work, loss of production, unemployment and so many other kinds of suffering. Adequate fire prevention measures should be taken so that the losses can be minimized.


Ensure good house keeping. Keep chemicals in cool and dry place away from heat. Use fuses and circuit breakers of correct capacity. Welding/Hot work should be carried out under proper fire watch. The hose joints should be fitted with good quality hose clamp.

For working in hazardous area proper protocol for hot job shall be made. Keep cylinders away from cutting/welding sparks.


Dont smoke in prohibited areas. Dont place obstruction in means of escape. Dont use damaged cords and avoid temporary connections. Dont plug to many electrical appliances in one socket.


Marketing Strategy Product Planning Market Segmentation Pricing Policy Channel of Distribution Network of Dealers Sales Promotion Customers Competitors


GACL is leading in marketing of caustic soda (Lye, Flakes and prills), chlorine, Hydrochloric Acid, Chloromethane, Hydrogen Peroxide, Sodium Cyanide, Caustic potash Lye and Flakes, Potassium Carbonate, Aluminum Chloride, Phosphoric Acid, Calcium Chloride (powder / Flakes). Most of the plants are integrated in such a way that part of finished product of one plant is consumed as raw material for the other plant. GACL also has an advantage in terms of quality and price for selling Hydrogen Peroxide and Chloromethane as raw material used in manufacture of these products are also produced in its own plants. GACL has been able to develop the market of Phosphoric Acid for use in soap and Detergents. Production of Phosphoric Acid is being sold to the bulk consumers like Hindustan Lever Ltd. This has enabled the company to run its Phosphoric Acid plant at above rated capacity through out the year, thereby ensuring smooth operations of Caustic Chlorine plant. GACL is also exporting almost all of its major products viz. Caustic Soda Flakes, Caustic Soda prills, potassium Carbonate, Potassium Hydroxide Flakes, Hydrogen Peroxide, Chloroform, Liquid Chlorine, Phosphoric Acid to many of the industrialized nations viz. US, Egypt, Syria, South Africa, Middle East, Singapore, China, Bangladesh, and Nepal. Overseas Customers are serviced directly or through agents.

In GACL, during the year of 1970 Gujarat government, through its own model agency i.e. GIIC had been in search of such units by setting the production capacity in Gujarat which can serve the customers of the GACL'S products Gujarat state has the advantage of longest costal line India where production of salt is abundant with this thought and proper planning GIIC started looking for setting up of a caustic chlorine plant in Gujarat it self. Because of the large demand of Caustic soda & low level of supply, the govt. decided to produce caustic soda about 33,000 tones per annum. The location of plant was decided as Vadodara keeping in view the availability of infrastructure with space so that the finishing attractive price.

At this time the production of chlorine & hydrochloric also increased. The plant was set up initially with old technology of mercury. Later on GACL adopted the latest technology of membrane cell. After introducing this latest technology GACL had been the only company manufacturing mercury free products in India. Later on GACL utilized the highest capacity & be came not only the largest producer of caustic chlorine but it stood first in entire Asia.

Whenever the products are in liquid form the segmentation of market area id decided such as a way that the customers are near to the main complex of GACL. The products like caustic soda lye, Hydrochloric acid, & liquid chlorine are of hazardous nature & hence though sufficient care for it safe handling are taken, it is preferred to hence sales as near as possible. Solid flakes / pills that GACL manufactures is being supplied to the global customers also. To increase the availability GACL has kept on its list of customer & the parties all over India & therefore GACL products are available in any comer of India GACL market segmentation is done on the basis of "Geographical Segmentation" where the market is divided into zones & regions. GACL have major market in west zone & commonly in north, south & east region. GACL sells its 60% of its total production within Gujarat, 35% IS supplied in other states & Approx 5% is exported.

GACL has increased the direction by having mutual understanding with the manufacturers of other company so that the supply of raw material is supplied in less time & at cheaper cost.

Price of a commodity means the exchange value, which we get through exchange of that commodity in terms of monetary basis. The prices of products determine the volume of sale & the amount of profit. Manufactures decide price on the basis of three factors, they are The cost of production The demand for the product The nature of the competition for the products The product price is governed by different polices & the main aim of it is to fetch maximum returns i.e. best price of its products. Many times it happens that one product may not yield managerial profit but in view of its demand in present market situation, the prices have to be kept lower than its cost of production. Marketing department in GACL fixed the price of the products & they

kept in mind that the prices decided by them must be competitive with equivalent quality products produced in the country. In initial stage, the trade discounts & credit facilities given to promote the product aggressive.

Distribution channel means a set of interdependent organization involved in the process of marketing a product or services available for use or consumption by the following. In the field of marketing channels of distribution indicates routes as pathways through which goods and services moves from producers to customers. The route of channel includes the manufacturer and the ultimate cumulative as well as all intermediaries. GACL has been getting all the three channels of distribution. For large consumers/public sectors like IPCL, GSFC, IFFCO, etc. The Company has adopted the zero level channel of distribution, where the manufactures goods are sold directly from manufacturer to customer. For medium scale consumer where price negotiation, transformation arrangements, payments follows up are regularly requisites and the quantity requested is not very large. GACL has adopted first level of channel of distribution, dealer/ trader/consumers. Also to top consumers having very small quantity requirement, where price and availability plays main side in buying decision. GACL has been operating through second level channel of distribution as follows. In GACL the products are sold in two ways:

DIRECT CONTACT: The company also enters into direct contact with other large companies like GSFC, IPCL, IOC, IFFCO etc. both the parties, negotiate with each other directly and the terms and conditions of contract are accepted mutually. THROUGH DEALERS: The company appoints same dealers to sell its products. Such dealers work for the company, discover customers, negotiate with them and try to expand the market. They charge some commission for their duty. The company has appointed dealers for the domestic market.


Network of Dealers for GACL, Area wise: No. 1 Region Gujarat Ahmedabad & North Gujarat Ankleshwar, Bharuch, Navsari & Surat Vadodara & Kheda Bulsar, Silvasa & Vapi Kutch & Saurastra 2 Maharashtra Ahmednagar, Ichalkaranjhi, Kolhapur No. Of Dealers 9 1 6 3 2 1

Kokan, Mumbai, Pune, Nasik Marathwada, Nagpur, Vidharbha 3 North India Delhi, Punjab, Hariyana, HP, UP Andhra Pradesh Hyderabad 5 6 7 8 Karnataka Bangalore Madhya Pradesh Indore West Bengal Kolkata Rajasthan Jodhpur 9 Tamilnadu Chennai

7 1 11

1 1 1 1 1 1

GACL undertakes sales promotion activities on a small-scale base. Some of its sales promotion activities are as follows: GACL actively participates in industrial fairs and has developed its own website which provides all the information about the company, its main product and its use, price of these products and the companys activities. GACL offers short term discounts to the customers when a new product is launched. GACL gives their advertisements in trade journals, industrial magazines. ONE STOP SHOPPING: GACL tries to provide most of the products required by

its customers for their convenience and as such they can even purchase the product at discounted price. GACL fulfils its customers requirements on time and on a continuous base.



Gujarat State Fertilizers Corporation IFFCO Gujarat Natural Fertilizers Corporation Deepak Nitrate Deepak fertilizers Dr. Reddys Aurbide pharma Torrent Ranbaxy Cadila Sun pharma Lupin laboratories Arvind mills Ashima Inds. Ltd. Bilag chemicals Aarti industries Gujarat Agro Chemicals Ltd. IOCL IPCL Reliance, Hajira HUL Godrej WF ltd. Nepal lever


Textiles Agro chemicals



Nirma Papers BILT Rama new print Tamil Nadu Pulp Industries JK papers

Atul product ltd. Comfad alkalies ltd. Century chemicals ltd. Tata chemicals ltd. Saurashtra chemicals ltd. Gujarat Heavy chemicals ltd. Southern Petrochemicals Industry ltd. Modi alkalies and chemical ltd.


GACL is also exporting almost all of its major products viz. caustic soda flakes, caustic soda Prills, potassium carbonate, potassium hydroxide flakes, hydrogen peroxide, chloroform, liquid chlorine and phosphoric acid to many of the industrialized nations. These overseas customers are served directly or through agents. Raw materials are purchased from India and the finished goods are treated as Export Oriented Units (EOU). Finished goods when sold in states other than Gujarat are deemed exports. General procedure of export: Seller and buyer conclude a sales contract with method of payment usually by letter of credit. Buyer applies to his issuing bank, usually in buyers country, for letter of credit in favor of seller. Issuing bank request another bank usually correspondent bank in sellers country to advice and usually to confirm the credit. If credit terms and conditions are confirmed with sales contract, seller prepares goods and documentation and arranges delivery of goods to carrier. Seller presents or negotiating bank named in the credit or any bank document evidencing the shipment and craft to paying, accepting willing to negotiate under the terms of credit. Bank examines the documents and draft for compliance with credit terms. If complied with, bank will pay, accept or negotiate. Bank, if other than the issuing bank sends the document and draft to the issuing bank. Bank examines the documents and draft for compliance with credit terms if complied with sellers draft is honored. Documents release to buyer after payment or an other terms agreed between the bank and buyer. Buyer surrenders bill of lading to carrier in exchange for the goods or the delivery order.

Documents are: Invoice Bill of lading Certificate of origin Insurance certificate Packing list Incase of import of raw materials: Invoice Bill of lading Certificate of origin Insurance certificate Packing list Certificate of analysis Guarantee warrantee Certificate Test certificate


GACL has two complex one is at Baroda and other at Dahej. At Baroda complex there are 4 plants under them the major production plants are:1. 2. 3. 4. Caustic soda plant Chloromethane plant Hydrogen peroxide plant Sodium cyanide plant

Caustic soda and Hydrochloric Acid are the basic chemicals for any industry. PRODUCTION METHOD AND RAW MATERIAL USED Power and salt are the major raw materials for the manufacturing of caustic soda using electrolyte caustic soda process. GACL is located to the west and therefore has an advantage of being close to the sources of major raw materials i.e. salt and power being a major input. GACL has promoted a joint captive plant, with Gujarat Industries Power Company Ltd. to meet their energy demand for Vadodara complex. Dahej complex is also integrated with a captive co-generation plant of capacity of 90 MW. GACL has also an advantage in terms of Quality and Price for selling Hydrogen Peroxide and chloromethane. The raw materials used to manufacture these products are produce in plant itself. GACL sells fertilizers, glass paper and pulp, soaps and detergent, textile, aluminum, agrochemicals and pharma and drugs etc. Company exports its products to countries like Australia, china, Europe, far east, Mauritius, middle east and south asia, Bangladesh, usa and Africa.

GACL has already started to diversify and expand its existing infrastructure to consolidate its supremacy in chlor and alkali and other stream product.


Company has a fully fledged R & D Centre, which is recognised by the Department of Science & Technology, Government of India. Co.s R&D efforts are directed on the specific areas strategically linked with the need of the market. The work is being pursued on the development of new products & processes, import substitutes, process improvement, cost reduction, cooling water treatment chemicals, formulations, effluent treatment & effluent control, developmental work on the existing products for improving the quality & marketability and to facilitate the absorption of new technologies. Companys efforts for standardization of the catalytic process for converting Carbon Tetrachloride into Chloroform have been successful. The Pilot plant studies have also been successfully completed to develop substitute for imported alcohol used in the Phosphoric Acid plant. The studies were also carried out to develop substitute for other imported raw materials used in different plants. Companys R & D centre is working to develop the laboratory scale processes for Dicalcium Phosphate Dentifrice Grade, Sodium Perborate & Sodium Percarbonate. Our R & D Centre also provides tactical support to Operations and Marketing by way of carrying out the developmental work on Poly Aluminum Chloride, Cooling Water treatment including the monitoring of corrosion and microbiological growth in the cooling water systems of all the plants, production and supply of specialized formulations for in-house consumption, specialized analyses of plant samples and studies on the technical aspects of different plants.


In any organization there are few primary departments which are essential. In order to run these departments smoothly few secondary or service departments are established which provide services to main departments. The Quality control department is also one of them. It helps & support Production department in manufacturing a product which suits customers requirement. Product Quality, as per costumer requirement gives utter satisfaction to costumer. Costumer satisfaction and company profitability are intimately connected. Rise in level of Quality increases the level of customer satisfaction. For quality control departments the costumers are Process dept., Marketing dept., & various other external & internal agencies. The department , having laboratories at both, Caustic Soda & sodium Cyanide complexes & are fully equipped with various analytical instruments & supported by, well experienced & Knowledgeable staff. The main function of Quality Control Department is to take up job of inspection at every stage of production process, right from the incoming Raw materials to out going finished products including every stage of in process

samples. By carrying out in process analysis the corrective action if any required to achieve finish product quality material can be taken at right time. The analysis results are conveyed to concerned departments for their further action. Any abnormality in the analysis is intimated at once to concerned department to initiate corrective measures, in order to achieve quality product. The department also extends Technical support to marketing department to establish new product in market & satisfy any quarries & complaints regarding product quality from customers. As the name Quality Control comes, one may take this function as the only responsible for the quality of the product, which in fact is not so. The main objective of this department is not to control but to indicate Where to control. In fact, the department performs the duty of WATCHDOG for the quality of companys products.

The finished goods produced are supplied to the customers through the dispatch department. The company follows a systematic procedure for the dispatch of all its products, and for this purpose the company has a separate department of dispatch. The procedure goes as follows: Day to day program is given by the marketing department to the dispatch department. Every day party approaches to the respective product officer. The product officer informs the marketing department thereby the marketing department issues delivery order to the transporter This delivery order is then given to the security officer by the transporter and on the basis of this delivery order the security officers issues a vehicle entry pass. The vehicle entry pass is given to the guard and the guard allows the vehicle to enter. Here the vehicle is weighed on the weigh bridge. There are in total three weigh bridges of the company. Then the authorized officer signs on the delivery order and the vehicles are sent to the respective filling points wherein this vehicles are loaded.

Again these vehicles are weighed on the weigh bridge. Here the tare weight and gross weight is calculated and the difference is the net weight of the goods dispatched. A weighment slip is given wherein the details regarding the product, its quantity, no. of bags, time of entering and leaving the place is mentioned. On the basis of this weighment slip, finally invoice is prepared in four folds tearing it into 8 copies.

These 8 copies are for following purpose: Internal Original copy for the buyer Office copy Extra copy Sales invoice department copy External Transporters MODVAT copy Gate copy Check post copy Acknowledgement copy


Material Management is concerned with two important departments:- Purchase Department - Stores Department

Inquiry/ indent in the market Inquiry is done in the market with the listed suppliers their quotations and offers are obtained on the basis of three parameters: Price Quality Timely delivery

The negotiation takes place and the lowest bidder is given the order. There are two categories of purchase indents: 1. Regular indents to be raised by user department directly. 2. Min-Max to be raised by Stores department for engineering items of consumable nature and where some minimum stock is required to be maintained in the stores. For items not covered under Min-Max list the inventors from various departments will raise indent for purchase in the form of designated computerized Purchase Indent and forwarded to Purchase Department.

For items covered under Min-Max list, Stores Department will raise computerized indent emerging out of planning/review based on past consumption, inventory levels, minimum/record level etc., and forward to Purchase Department. The Indenting Department shall also raise indents for items, though covered under Min/Max that may be required in abnormal quantities and/or for specific jobs/schemes on the basis of requirements given by concerned users.

The stores department has to perform different functions of inventory and other related functions. The continuous function of this department can be said to maintain the records of daily stock position in its respective stock register. This statement is mailed everyday to the production department so that it can make the estimate for the following days. Specimen for stock register
Code Description Opening stock Receipt Issue Closing stock

Raw materials Other chemicals Packing materials Industrial gases

After the order is once placed by the purchase department the goods is sent by the supplier along with a delivery challan. The goods received are then verified with the delivery challan. The purchase order that is placed is avilable online to be viewed.

The goods are then categorised into the following : Raw materials Stationery Packaging material Safety equipments Engineering tools


In general there are 3 methods used for storing the materials. They are, (1) FIFO METHOD. It means in this method the goods are issued on the first in first out basis. (2) LIFO METHOD. In this method the stock is released as per the last order received. Whereas in the (3) WEIGHTED AVERAGE METHOD. The average price is taken into consider and the stock is released as per received. In GACL the FIFO method is considered. This firm is producing the hazardous chemicals. Its very difficult to store the raw material which is also very hazardous in nature. So they cant be store for a long time. So, first in first out method is used in GACL. And it is very advantageous for the co. employees to maintain a records of every material comes in or goes out of the stores. All the work is followed by computer system. The programme loaded in the computer shows all the details. It shows the quantity ordered, stored and used during a particular period.

GACL follows ABC analysis for the Inventory Management

ABC analysis is used for the management of inventory at GACL. The raw materials are classified as A, B and C on the basis of the cost of the raw materials. The raw materials are categorized under Y and the packing materials are categorized under Z category. There are five raw materials under X category at GACL the classification of raw material is as under.


A item
Salt Barium Carbonate Soda Ash Sodium Bisulphate Alfa Cellulose Sulphuric Acid

B items
Magnafloc/ Fastfloc Sodium Sulphite Sodium Thio Sulphate Ammonium Nitrate Mono Ethline Gycol Nitric Acid Mono Ethylamine Palladium Catalyst

C items
HM-HDPE Barrels 200 Ltr. HDPE Bags-CSF HM-HDPE Carboys HDPE Bags- KOH Flakes HM-HDPE Drums Furnace Oil Cast Iron Powder Polythene Bags MS Drum Allumina Trihydrate Powder Sugar Prills Bags Morpholine


The Finance Department is divided into 9 different sections:

Section wise functions of Finance Department:

Sales Accounting
Maintain the details of sales and debtor account and related adjustment. Sales Accounting has to deal with the external parties such as Government Bodies, Sales Representatives, & Dealers, Manufacturers, Direct Dealers, Retail Traders etc... The main function of this section is Sales Collection and completes all the formalities related to sales tax, Excise with the due date concerned. Collects sales data and prepare all the data related to sales with all customers keep in mind. They also look into the sales collection on daily basis, sales target to be met daily, everyday procurement of the orders, price structure of the product and daily dispatch. The preparation of debit note and credit note prepares discounts chart. The discount given depends on the quantity the customer lifts from the company.

Bill Passing
All the bills that are raised come to this department for the sanction. Even when raw materials are purchased, the supplier sends the bill to the purchase department, which then sends to the finance department. It is here that all the particulars are checked and approved. Only after the bills have been approved payments will be made. Any department requiring any payment of the bill needs to first send the bill here for approval. The company enjoys E-PAYMENT for CENVAT, EXCISE and also the salaries.

Bank Section
Check out the details of banking transactions and maintain the balance of bank. ( Bank reconciliation statement ). Bank section looks after deposits in cash and bank account. It also collects checks from marketing department. Banks like HDFC, IDBI, SBI, AXIS BANK are involved in the transaction with GACL. Following are the basic task perform by this section To consolidate the bank account, take into account the cash credit limit. Cash credits are monitored so that interest payment can be control. Every month cash flow statement is prepared. GACL is using E-payment for ease of payment. Credit limit of the company depends on the negotiated days contract.

Loan Section
When new projects are taken up, a project report is prepared, based on market survey. The report includes the present and future estimates, financial aspects i.e. estimated cost, budget, etc. production capacity, market trends and the

likely sales. When project pass through then they goes to financial institution for its final approval by this section. This section Do negotiation with bank for payment terms and rate of interest and make long term arrangement for new project. Loan of any employee as per the rules is considered under this section.

Inventory Accounting Section

This section is concerned with the Valuation of Inventory. The Stores Department prepares a Goods Receipt Voucher. Based on this voucher, cost of inventory is calculated. This goes to say that the quantity is all checked by the stores, but the amount is checked by this department based on the order placed. This section needs to monitor the amount of inventory in the company. This also includes the stores and spares items in the organization. It also prepares the Variance Report based on the purchase order placed and the materials received. Monthly statement of inventory is send to bank for the hypothecation of the stock of capital.

Costing & Budgeting Section

Make estimation of cost to the company (CTC) and budget in advance and try to reduce the cost and improve efficiency. Costing is done not only for whole activity but also for individual items. This section prepares the monthly cost incurrence budget and monitors it. They have to ascertain the variable cost of the items being produced. This is because the knowledge of the variable cost is very essential as if an item is sold below the variable cost it would incur loss to the company. This section has a major hand in ascertainment of the prices of the

items because it provides data about the cost of production

Central Accounting Section

Central Accounting Section is the Heart of Finance. Activities of all other section are connected with central accounting section. The different functions of this section are: preparation of the BALANCE SHEET and the PROFITABILITY STATEMENT. Financial statements and accounts prepare on monthly, quarterly, & annually as per the requirements and send to SEBI and the stock exchange. Profitability is calculated on day-to-day basis and posts it on intranet and reported to Managing Director. Verify the Account maintain by all the department and make financial analysis of the statement and also give suggestion and recommendation. They also involved in Annual Report preparation and provide all required information to the management. Find out profitability ratio every day to check whether the company is going correctly as per the targets.

Income Tax & Insurance Section

This section takes care of all tax related issues. They are involved in tax planning and update all the laws with respect to taxation. This becomes very important for the company because many decisions are taken; keeping in mind its tax implication. The budget in this respect has also to be made for the payment and provision of advance tax. They also manage the insurance part. GACL basically has

the insurance for the Fixed Assets and also a Group Insurance for the employees. For deciding on insurance the company calls in for quotations from various companies and decides based on the lowest and also considering the reputation. Tax laws are updated as per rules. Tax planning is under this department as part of prior responsibility. Insurance of all the fixed assets are done. Tax consultants are appointed to follow up with tax laws.

Establishment & Cash Section

Section do all employees related work like prepare pay bill of employees, income tax, pension and gratuity, leave encashment, LTA etc. This section works in union with the HR department. The calculation of the salary for both management and non management cadre is done here. All the deductions like PF, loans etc. are done here. They also incorporate into the salary the various allowances like. Housing allowance Conveyance allowance Medical allowance Canteen allowance Shift allowance Washing allowance Garden allowance Chemical handling allowance Professional skill development allowance Transportation allowance City compensation allowance

Main functions of this section are: Salary Overtime

Income tax deduction of employees Preparation of FORM 16, 12B Statutory government payment like professional tax, LIC PF, loans and advances to employees Employee claims Pension Retirement dues like leave encashment, gratuity