RIPORT ON

ORGANISATIONAL STUDY
At

PHILIP CARBON BLACK LIMITED

Submitted in partial fulfillment of the requirements
for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION

To

MAHATHMA GANDHI UNIVERSITY

By

MUHAMMED SABITH – A

DEPARTMENT OF MANAGEMENT STUDIES

JAI BHARATH SCOOL OF MANAGEMENT SUDIES
(Approved by A.I.C.T.E, New Delhi)
Arakkappady.Perumbavoor. Eranakulam
 DECLARATION

I MUHAMMED SABITH, here by declare that this project

report entitled “An Organizational Study at Phillips Carbon Black
Limited-Cochi Unit” has been prepared by me under the guidance of Prof.
THOMAS WILSON, JAIBHARATH SCHOOL OF MANAGEMENT
STUDIES,ERANAKULAM,COCHI,Affliated to M.G University .

I also declare that the empirical findings in this report are based
on the data collected by myself and no part of this report has been submitted
by me fully or partially for the award of any other degree, diploma, title or
recognition earlier.

MUHAMMED SABITH

2
 ACKNOWLEDGEMENT
I take this opportunity to express my profound sense of gratitude to all those
who helped me in completing this project.

I would like to express my sincere gratitude to MR. Babu Abraham- HR

Manager- for granting me the permission to do the project. I acknowledge
Mr. Sajee Varghese, Financial Manager , Mr. Varghese and Mr. J.M.
Mathew for their valuable guidance and encouragement.

I acknowledge with gratitude to my mentor, Prof. THOMAS WILSON,

JAIBHARATH SCHOOL OF MANAGEMENT STUDIES,(Affliated to
M.G University) for his valuable guidance, encouragements and creative
suggestions in the preparation of this work.

Finally I express my humble gratitude to my friends, parents and others for

the encouragement and support given to me.

3
 INDEX

1. NEED FOR THE STUDY

2. OBJECTIVES OF THE STUDY
3. INTRODUCTION
4. HISTORY
5. RESEARCH METHODOLOGY
6. INDUSTRY PROFILE
7. COMPANY PROFILE
8. ORGANISATION STRUCTURE
9. DEPARTMENT
9.1. FINANCE DEPARTMENT
9.2. PURCHASE AND STORES DEPARTMENT
9.3. PRODUCTION DEPARTMENT
9.4. MAINTENANCE DEPARTMENT
9.5. HUMAN RESOURCE DEPARTMENT
9.6. QUALITY ASSURANCE DEPARTMENT
9.7. WAREHOUSE DEPARTMENT
9.8. MARKETING DEPARTMENT
9.9. LOGISTICS DEPARTMENT
9.10. CENTRAL EXCISE AND OIL DEPARTMENT
9.11. CAPTIVE POWER PLANT DEPARTMENT
9.12. ENVIRONMENTAL DEPARTMENT
10.KEY RESULT AREAS
11.KEY RESULT ACTIVITIES
12.FINANCIAL STATEMENTS

4
13.SWOT ANALYSIS
14. SUGGESTIONS
15.CONCLUSIONS
16.BIBLIOGRAPHY

Need for the study

It has the following needs:

 The study attempts to understand the performance of different

departments.
 To understand the working conditions in the organization.
 To understand the financial position of the company.
 To understand the market position of the company.

Objectives of the study

 To know about the organization in detail.
 To understand the functions of various department.
 To know about the strength and weakness of the organization
 To know various products and services of the organization.

5
 HISTORY
Philips carbon black has come a long way since its inception in
1960. PCBL started production from December 1962 by oil furnace the most
widely accepted manufacturing process of carbon black patented by its then
collaborator and world carbon black leader Philips Petroleum Company USA
The collaboration ended in 1978. However PCBL continued its progress by
virtue of the ingenuity of its technologists, engineers and sustained R&D
activities. In 1988 PCBL entered into a technical agreement with Colombian
Chemicals Company, USA, and acquired access to modern state of the art
carbon black technology. This resulted in company gaining flexibility,
product range production capacity and energy conservation.

The performance in the field of export has also been

spectacular, the company being the largest exporter in Asia handling about
77% of India’s carbon black exports. From an initial figure of 211mt in the
year 1992-93 the exports so a quantum of jump of 35200mt in the year 2000.
Export earnings also witnessed a similar performance, thereby conferring the
status of a recognized export house on the company, currently export sales
stands around 20% of the total sales. PCBL supplies to international tyre
companies such as bridge stone-firestone, Dunlop, Goodyear and other year
companies in USA, Newzealand, Holland, Philippines, Japan, Malaysia,
Thailand Indonesia Taiwan, turkey, Germany, Iran, Egypt, Srilanka, South
Africa, Nepal, china etc.

6
 RESEARCH METHODOLGY
Methodology is a procedure or technique adopted in a research study or
investigation. Many methods and procedures have been developed and
employed to meet the needs of these searches in gathering varied facts
essential for my study thus forming conclusions from different sources. in
every price of research different methods are used in different stages of its
development. The selection of method for research work depends upon the
nature of the problem.

SOURCES OF DATA

For the purpose of analyzing the overall performance of Philips carbon black
Ltd the investigator used primary data and secondary data. These data give
us valuable information about the company’s performance.

PRIMARY DATA

Primary data refers to those data, which do not exist already in the records
and publications. for the purpose of collecting primary data the investigator
conducted an interview with every departmental employees and heads of
Philips Carbon Black Ltd.

SECONDARY DATA

Secondary data refers to those data, which exist already in

the records and publications

7
 INDUSTRY PROFILE

Carbon Black is used mainly as a reinforcing material in the

rubber industry. Other user areas include inks, paints, plastics and
paper. The rubber industry uses 95% carbon black production while the
rest is consumed by plastics, paints and dry cells.

WHAT IS A CARBON PRODUCT?

Essentially any organic material can be thermally

transformed to carbon. The carbonization process uses heat to convert
organic precursors into a carbo polymer. Some selected precursors can then
be transformed into a three-dimensional graphite structure or near graphite
structure. Differences in the properties of final carbon products depend on
the raw materials used on the extend of completion of overall chemical and
physical ordering processes and upon whether the thermal transformation
takes place from the vapour, liquid or solid phase. Carbon products can be
grouped according to the extend of material processing raw material, carbon
precursors and finished carbon products. Coal tars and petroleum cokes are
the principal raw material used in the carbon products industry. These
materials are bi-products of refining and other coal and oil processing
operations. In the United States, approximately l.Smillion metric tones of
coal tar and 24 million metric tones of petroleum cokes are produced each
year.

Pitches and cokes, which are derived from coal and petroleum tars or heavy
aromatic liquids are the two main carbon precursors materials fro the
production of bulk carbon and graphite products and for the manufacture of
carbon blacks. Pitches have a glass like character and cokes are carbon
industry vision infusible solids. Bulk carbon and graphite products such as
electrodes are produced by first blending calcined as a filler and liquid pitch

8
as a binder. This “green” material is then thermally processed through a
series of progressively higher temperatures to achieve the final desired
properties. Petroleum coke is the largest single precursor material in terms of
quantity for manufactured carbon and graphite products. Approximately 10
million tones were consumed worldwide in 1997. Other precursors include
natural graphite, hydrocarbon gases, carbon blacks, anthracite and synthetic
resins. Carbon blacks are nano cale carbon particulates produced by
pyroloysis of feed stock from the vapour phase with homogeneous nucleation
of solid carbon.

INDUSTRY APPLICATION FOR CARBON PRODUCTS

RUBBER PRODUCTS: Carbon black is used for making tyres and rubber
tyres along consume 650000 tons/year of carbon black.

• Structured particulates of controlled morphology

• Readily wet by rubbers
• Thermally stable, mechanically robust

9
 COMPANY PROFILE
PCBL established in 1960 was originally promoted by
Duncan brothers in financial and technical collaboration with Philips
Petroleum Company, USA . In 1987 the company entered into a technical
collaboration with Colombian Chemical Company, USA, one of the world’s
leading producers of carbon black. In 1988, the foreign equity holding was
divested in favour of Indian shareholders and employees of PCBL. Presently
PCBL has no technical collaboration with any firm and has been
manufacturing through indigenous technology.

COCHIN UNIT

Company Address
Phillips Carbon Black Ltd.
Karimugal
Brahmapuram P.O
Cochin-682303
Name Phillips Carbon Black Limited
Registered Office 3 l,N.S.Road,Kolkata-700001
Corporate Office 3 l,N.S.RoacLKolkata-700001
Date of incorporation March 31 1960
Sector Private
Constitution Public Limited Company
Production capacity 40000 MT p.a
Turn Over 140 Crores p. a
Total number of Employees 148
Management Staff 62

10
Non-Management staff 86

WORKING HOURS
Hours of work 8 hrs
General Shift 9.00 A.M to 5.00 P.M
“A” Shift 11.30 P.M to 7.30 A.M
“B” Shift 7.30 A.M to 3.30 P.M
“C” Shift 3.30 P.M to 11.30 P.M
CAPACITIES

PCBL has over the years has expanded its capacities by undertaking
modernization-cum-expansion-cum-debottlenecking exercises in stages
along with acquisition to reach the current capacity levels given below.

11
 PRODUCT PROFILE
PCBL produces around 22 categories of carbon black. Carbon
Black are powdered forms of highly dispersed elemental carbon
manufactured by controlled vapour phase pyrolysis of hydrocarbons. There
are a number of different types of Carbon Black produced by different
industrial processes including acetylene black, channel black, furnace black
and thermal black. Average particle diameters in several commercially
produced Carbon Black ranges from 0.01 to 0.4 micrometers, while average
aggregate diameters range from 0.1 to 0.8 micrometers. Most types of carbon
black contain over 97 to 99% elemental carbon. The key customers of PCBL
include major tyre manufacturers including MRF, APOLLO Tyres, CEAT
Tyres, JK Tyres and BIRLA Tyres in the domestic market and Bridgestone
and some leading Tyre Companies of South East Asia among Global players.
PCBL has thus emerged as a key player in domestic and international carbon
black market.

PRODUCT RANGE OF PCBL

PCBL manufactures around 20 different grades of Carbon Black

and is the 11th largest manufacturer in the world. The following table gives a
snapshot of various grades manufactured by PCBL, major applications and
properties of Carbon Black:

12
KEY SUPPLIERS

1. Glencore-USA
2. APR Packing
3. Storesack
4. Shubia paper product Kuwait
5. WI Gore & Associates
6. Hi-Temp Filex
7. Carborandum Universal

KEY CUSTOMERS

1. MRF
2. APOLLO Tyres
3. JK Tyres
4. CEAT
5. TVS Srichakra

6. MIDAS

13
MISSION
DEVELOP MANUFACTURE AND MARKET CARBON BLACK
COMPETITIVELY,BE THE MOST PREFFERED SUPPLIER TO THE
CUSTOMER AND CREATE WEALTH FOR ALL STAKE HOLDERS ON A
SUSTAINED BASIS.

VISION
TO BE A GLOBAL CARBON BLACK PRODUCER, MANUFACTURER OF
450000 TONNES THROUGH EFFICIENT LOW COST AND
ENVIRONMENTAL FRIENDLY.

OPERATION BY BEING

 Reliable, Competitive and Responsible supplier

 Transparent and sustainable wealth creator to stake holders

 Fair Employer providing an exiting work place

14
PERFORMANCE APPRAISAL

RPG Enterprise recognizes and honors performance through:

• An aggressive performance management system
• Awards for outstanding performance
• Fast track careers for consistent high performers
• Career opportunities in the various business sectors of the group
• Organization and Management review process at the
management committee level that reviews the status and progress of
high fliers

15
LEARNING AND DEVELOPMENT PROGRAMME
RPG Enterprise encourage learning and development through:
 Leadership Development program designed in association with some
of the best in the world
 Development centers to map competencies and identify development
needs
 Development action plan for managers to bring in cutting edge
proficiency levels in managerial competencies
 Freedom to identify employee’s training and development needs
 Rigorous cross functional task force assignments to crack
business challenges

CORPORATE SOCIAL RESPOSIBILITY

 Promotion of sports and cultural events for the community
 Providing basic amenities(electricity, food, water, etc) to local
anganvady
 Supporting self employment scheme for women
 Financial help for poor patients in local community
 Distribution of notebooks, school bags, umbrella, scholarships to
local needy students
HI-TECH FACILITIES
To achieve competitive quality, PCBL has been continuously upgrading the
technology. The process in Cochin unit are controlled by most advanced
distributed control systems symbolizing the essence of state-of-the-art
technology.

16
VALUES
 Customer Sovereignty
 People Orientation
 Innovation and Entrepreneurship
 Passion for superior performance
 Anticipation, speed and flexibility
 Transparent and integrity

SAFETY AWARENESS

PCBL organizes safety awareness programmes for the

employees and the local community. PCBL wants to make aware the
employees that the products and inputs for the product in plant doesn’t
undergo hazardious chemical reaction and doesn’t cause any health problem
to employees and to the community. PCBL wants to satisfy the employees
that the firm is taking all kinds of precautions while production. PCBL was
awarded the second best safety and house keeping practices in 1995.

17
ORGANISATION STRUCTURE

18
DEPARTMENTS

19
 FINANCE DEPARTMENT
Finance was the life blood of any business. Financial
Statements contain organized systematic and summarized information on the
firm’s financial affairs. They are meant to present the financial performance
to the concerned parties. Balance Sheet and Profit & Loss a/c are the two
basic financial statements prepared for the purpose of external reporting to
owners, investors and creditors.

PCBL follows the system application and products(SAP)

system of accounting under ERP. SAP is an integrated system of accounting
containing different modules. Internal audit is conducted in the organization
for better performance.

FUNCTIONS
 To prepare Profit & Loss account and Profit & Loss Appropriation
account
 To prepare Cash Flow and Fund Flow Statements
 To prepare quarterly financial reports
 Supervise internal audit costing, budgeting and other internal control
system
 Establishing internal control in operational activities and
financial transactions
 To analyze and evaluate various trends such as net worth ratio, debt
equity ratio and current ratio
 To estimate the value of fixed assets, current assets and liabilities
 To prepare final accounts and this should be submitted to top
management for approval

20
 SUMMARY

Finance Department is the master key which

provides to all sources for being emploted in manufacturing and
merchandising activities. This department deals with preparation of financial
statement, recording of all the transactions undertaken by the company. This
is also concerned with making payment to the vendors. It also makes
necessary obligation to Banks and other various financial institutions. The
finance department follows the accounting policies and the regulations laid
down by company board. The efficient management of every business
enterprise was closely linked with the efficient management of its finance.

21
PURCHASE & STORES DEPARTMENT
Purchase Department is the key department in the company.
Quality Raw materials leads to quality products. The Purchase Department
ensures the purchase of quality raw materials for production at reasonable
prices. About 90% of total cost is incurred for procuring raw materials. All
other Departments acts as supporting departments.

This department takes account of how much to be purchased

and the stock level of production. Purchase of various raw material takes
place through Purchase Department. The various other departments present
their requirements to stores. They prepare a store indent.

FUNCTIONS OF PURCHASE DEPARTMENT

The functions of Purchase Department include
 Approval of specification list of the materials required for a
particular project
 Receipt of materials > Identification and development of reliable
vendor for supply of equipment and materials
 Material requirement planning
 The performance evaluation of vendors
 The vendor performance is evaluated based on:

 Quality
 Percentage of rejection
 Adherence to delivery commitments
 After sales service

22
FUNCTIONS OF STORES DEPARTMENT
As per the departmental procedure for purchase, all the materials required for
the project will come to the stores where the Store Head will be the custodian
of all materials being received. Incoming materials is inspected in
accordance with the approved quality plan for the project by officials.
Functions are:
 Store Keeping
 Inspection of incoming materials
 Storage identification and preservation
 Equipments records maintenance
 Control of customer supplied materials
 Stock verification
 Safe custody of materials
 Optimization of inventory

PROCEDURE OF PURCHASE
The procurement action is initiated based on Purchase Requisition raised by the
intending department. The PR is originated by the head of the concerned
department and authorized by the chief of operation. The PR is received at the
Purchase department after the clearance by Stores Department. On receipt of PR
in the purchase department the purchase officer in charge of the registration of
PR opens the purchase files for each PR and assigns the file to the dealing
officer based on the work allocation order issued by the purchase manager. The
purchase files are identified by the control number given by stores department
while clearing the PR, duly prefixed by the officer code number. The dealing
officer then initiates action for the issue of the enquiry.

23
RAW MATERIALS
CBFS’ the primary raw material accounts for 55-60% of the
total operating costs. Hence, CB manufacturing is a highly raw material
intensive industry. CBFS use the residue left after the refining of the crude
petroleum oil. Since CBSF prices are closely linked with crude petroleum
prices, the CB manufacturers are essentially price takers and are exposed to the
risk of volatility in CBFS prices. In order to insulate themselves from such
volatility, the domestic manufacturers have formulated a pricing policy which
tries to pass on the volatility of CBFS prices to the customers by linking with
ex-factory CB prices of a producer to its actual purchase cost of CBFS over a
quarter.
Raw material cost being a ingredient of the total cost of the
procurement of the same is given the highest priority and is monitored at the
level of managing director with the help of a committee. PCBL produces around
70-80% of CBFS from the New York Mercantile exchange(NYMEX) either
through spot market or futures market. The rest is being sourced from the
domestic producers. The CBFS pricing at NYMEX becomes the benchmark
price for the domestic producers and hence the ultimate cost to PCBL is the
same, still PCBL prefers to impart the CBFS as a domestic feedstock has the
lesser quantity of carbon than the imported one.

SUMMMARY

The objective and responsibility of the purchase department is to

provide quality, cost efficient supplies of raw materials needed for concerned
departments. Purchasing procedures have been established to facilitate the
accomplishment of this objective while complying with company policies
and practices.

24
 PRODUCTION DEPARTMENT

MANUFACTURING PROCESS

PCBL, manufactures Carbon Black by a process known as the “Oil Furnace

Process”. Carbon Black Feed Stock used as raw material are hydro carbon
oils rich in carbon content of petroleum and coal tar origin, preheated air and
oil feedstock are injected in reactor lined with high temperature refractories
kept at a temperature of 1200-1600 degree celcious, where the feedstock
undergoes cracking or decomposition.
The decomposition of the feedstock in deficiency of air and under carefully
controlled conditions results in the formation of Carbon Black aggregates.
The reaction which takes place in a few milliseconds is stopped by water
quench. The resultant smoke carrying Carbon Black is quenched with water
spraysand passed through heat exchangers , which in turn preheat the inlet oil
and air thus achieving conservation of energy and improving the yield
The product stream i.e. smoke , is further cooled by secondary water
quenching in vertical towers . it then enters bag filters where carbon black is
separated from gas , the by product called off gas having low calorific value
(around 650-700kcal/NM3 average) is burnt and the heat is utilized for
generation of stream , drying operation &generation of power.
Separated carbon black dust is pneumatically conveyed to a pelletiser where
the help of water solution and high gyrating force pellets are formed which
are dried in rotary dryers finally stored in product storage tanks , products are
bagged in paper bags(2.5kg.nt)
PCBL manufactures carbon black in a number of grades. The various grades
can be broadly divide between two categories, viz, Hard Black & Softblack.
Hard Black is manufactured by a process called “tread stream” and is
basically used for the outer surface of the tyre. Soft Black is manufactured by

25
a process called “carcass stream” and is basically used for the inner surface
of the tyre. The process flow schematic diagram is enclosed.

Surface area and structure are two primary variables in the process, which
result in different grades, changes in surface area or structure or both at a
time to pre-calculated levels will effect change over into other grades.
Surface area is changed by changing operating conditions in the reactor, such
as

a)throughput(oilrate)oil burner positions

b)residence time(time of reaction)
c)oil-air ratio

MAJOR EQUIPMENTS USED

1. Reactors No: 3 & 6
2. Air pre-heaters
3. Process air blowers
4. Compressors
5. Pumps and fans
6. Bag collectors
7. Micro Pulverizes
8. Mixer Palletizes
9. Rotary Drier
10. Storage silos and auto packer

FOUR MAIN STGES OF PROCESSING

1. Cracking
2. Filtering
3. Pelletisation
4. Drawing
TYPE OF REACTORS USED FOR THE PROCESS

26
 1. Tread
2. Carcass

PRESERVATION OF PRODUCTS
The department preserve the conformity of the product during internal
processing, storage and delivery to the intended destination. The preservation
of the product includes the protection of products against damage or loss
during packaging, handling, storage and delivery.

MAINTENANCE DEPARTMENT
The purpose of engineering department/maintenance department is to
maintain the infrastructure, equipments and utilities needed to achieve the
product requirements, the maintenance department is concerned with
rectifying the problems related to mechanical, electrical and instrumentation
and are classified into three sections.
1. Mechanical section
2. Electrical section
3. Instrumentation section

MECHANICAL SECTION

Proper maintenance increases life of the machine. This section alters

mechanical defaults of the machines in the plant. For precautions initiative is
taken by the Head of the department for the whole year. Once in a year annual
shutdown are made for overall maintenance in plant.
OBJECTIVES
 Maximize the plant availability
 Minimize mechanical/electrical/instrumentation break downs
 Implementation of scheduled preventive maintenance

27
  Implementation of planned condition monitoring
 Maintain in house caliberation of instrumentation /electrical instruments
and all external caliberations .

Procedure followed by maintenance department

1. Preventive measures
2. Corrective measures
3. Material intend raising & inspection
4. Statutory inspection
5. Equipment history
Preventive measures are adopted in order to avoid a future failure. This measure
include preparation of periodical maintenance chart depends on the running
hours by the yearly planner corrective measures are adopted after occurring a
failure to machines . material intend raising and inspection section includes job
material specification to purchase department after inspecting the quality.
Statutory inspection is carried out by some external agencies once in a year for
equipments like boilers, lifting tools etc. This section is servicing round the
clock which help in achieving production targets. Its efforts are to bring down
the zero level maintenance by implementing predictive maintenance.
Engineering are provided with checklist to check the machines running
according to the standards. Day to day works and pending works in the
workshop is listed in the notice board. The main function of the section is to
make machines available for production in time. Machines are properly greased,
lubricated overhauled

periodically. During the shift most of the machines are cleaned and greased with
the help of air blobbers, air fans, greases, guns etc.
Some of the equipments in mechanical sections are lathe, grinding machine,
welding machine, gas cutting machine, drilling machine, overhead cranes,
power hack saw, chain block, screw jack, D shackle, wire slings, etc

28
ELECTRICAL SECTION
PCBL is a 1.7 MW Project. Foreseeing the power problems faced in Kerala, this
department is equipped with the generators which are sufficient to carry out
work without shut downs during power cuts . the capacity of different
generators is 250 kv, 500kv, and 1250kv . this department is highly maintaining
the safety of workers and plant being vigilant and quick services. This section is
only engaged in rectifying the break downs due to power problems all over
plant.
Procedure of work
Work is followed on the basis of schedules and call sheets in the department.
Log sheet is prepared according to shifts. Here workers have to record the
details of voltage and ampere of motors , flow of current etc . Schedules
followed in the electrical departments :
1. Periodical checking
2. Substation earth resistance maintenance
3. Continuity testing
4. Insulation resistance checking
Instrumentation
Instrumentation department deals with the maintenance of instruments in the
plant . it observes instruments showing the temperatures of machines, flow of
primary feed stock and secondary feed stock , pressure of air , water and
additive etc. warehouse departmental instruments are rectified by
instrumentation department.

29
HUMAN RESOURCE DEPARTMENT
The hr department deals with the activities of human resource in the
organization . the in-charge of this department is “hr & administration head”,
who is directly under the ‘chief of operation’. During the year, company
focused on delivering distinctive people with organizational capabilities . A
voluntary retirement scheme (VRS) launched during 2001-2002 was availed
by around 90 employees, the cost incurred was Rs. 267 lacs was met through
internal resources. the vrs expenses are to be amortized over a period of five
years.

FUNCTIONS OF PERSONNEL DEPARTMENT

The various functions of the personnel department are as follows:

1. MANPOWER PLANNING
The requirement of Human Resource for the organization was based in the
long-term business plan of the organization. PCBL currently has employee
strength of around 672 all over India. Duragpur unit has 112, Cochin unit has
144 and Kolkata office has 97 employees.
2. TRAINING

Every organization need well trained and experienced people to perform

activities that have to be done. Training was given for workers as well as
office staff. Workers get training in the plant because they get application of
knowledge. By giving training it will improve the performance of employees
on current job. Providing training to employees will result in high
productivity, improving the quality and thus help the company to fulfill its
organizational goals. For office staff, computer knowledge is inevitable. So
office staffs are provided with computer training as all the departments are

30
connected by network. The newly recruited personnel are given induction
training/orientation.

TRAINING PROCEDURE

Department itself identifies the training needs essential for its

employees. Head of the department will forward it to the human resource
department. The Human resource department will then shortlist and get it
coded. They make calendar for the whole year regarding the type of training
needed. The programme for management staffs and technical staffs are
different. The employees of PCBL are highly motivated through various
schemes. A suggestion box is placed in the company and any employee is
free to put suggestions into it. Every month the committee evaluate the
viability of suggestions forwarded by the employees. If the committee thinks
the suggestion so beneficial, they put it into practice. PCBL views
investment in human resource as a productive form of long term investment.
Training process is as follows:
1 .Identification of training needs
The minds of employees seems to have evolves through a transformation
process. They are now more growth oriented ,ambitious, industrious, forward
looking and increasingly adaptable to the rocking changes in the industry.
2. Assessment centers
PCBL has adopted assessment centre technology to assess the training needs
of the employees across all levels. PCBL has adopted a differentiated
assessment suit for assessment of training needs of employees at different
levels.
S.Competancy Profiling
The competency profiling is a method of CRG(corporate resource group, a
consulting organization) is used which link compensation to the 3P’s-
position, person and performance. The model has helped the organization in

31
position clarification, objective setting, performance review, position
evaluation and personal development of executives.

4. Employees Opinion Survey

It is an important tool to guage the employees opinion about organization

culture, their feeling level towards their superiors, peers the organization in
general and the overall level satisfaction with their jobs.

RECRUITMENT AND SELECTION

The sources of recruitment of the company include both internal and external
sources. The company chooses external sources like a campus recruitment,
personal reference etc. The company is no way interested in contacting
recruiters like private employment agencies for hiring purposes. Direct
recruitment is made by Personnel Manager and the concerned head of
department.

SELECTION PROCEDURE
Firstly the applicant has to fill a man power requisition form. Then short
listed candidates are invited to attend interview and select best candidate
among them and give them induction training. The selected candidates are
appointed on a probation basis for 6 months after that they are eligible for all
benefits from the company. The promotion of employees is based on the
merit. The performance appraisal management system is highly active in the
department. During the beginning of the accounting year, duties and
responsibilities of each employees are prepared and also some standards are
fixed in order to compare the actual performance with the standard
performance.

32
TRADE UNIONS
PCBL has internal trade unions for the welfare of the employees. They are in
no way in any contact with external trade unions. There are two trade unions:
 CACIL -Carbon & Chemical Industries Ltd Employees

 PCBL-Phillips Carbon Black Ltd Employees

GRAPHS AND DIAGRAMS

33
 GRAPH
Graph-1

Non-
DEPT M.STAFF M.STAFF
Unit Head 1 0
Production 17 4
Warehouse 3 23
Engneering 8 29
CPP 10 2
QA 5 8
Meterial 4 4
HR&Adm 2 9
Project 2 0
CE&Oil 2 2
Finance 4 4
Logistic 1 1

MAN POWER DEPT WISE

35
30
25
NUMBER

20 M.STAFF
15 Non-M.STAFF
10
5
0
od a d

Fi Oil
A
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DEPT
 TRAINING EXPENSE
TRAINING EXPENSE
MONTH BUDJET ACTUAL
JAN 0.08 0.06
FEB 0.08 0
MAR 0.08 0
APR 0.1 0.1
MAY 0.1 0.31
JUN 0.1 0.03
JUL 0.1 0.23
AUG 0.1 0
SEP 0.1 0.04
OCT 0.1 0.29
NOV 0.1 0
DEC 0.1 0
 TRAINING EXPENCE

0.35

0.3

0.25
RS in LAC

0.2 BUDJET
0.15 ACTUAL

0.1

0.05

0
Y
R

V
G
N

T
R

C
B

P
A

JU
A

O
JA

JU

C
U
FE

E
M
M

N
O
A

D
MONTHS
 MANPOWER CONVERSION COST

MANPOWER CONVERSION COST

YEAR Rs/MT
YEAR Budjet Actual
2005-06 1163 1223
2006-07 1371 1292
2007-08 1431 1605
 MANPOWER CONVERTION COST

1800 1605
1600 1431
1371
1400 1292
11631223
1200
RS/MT

1000 Rs/MT Budjet

800 Rs/MT Actual
600
400
200
0
2005-06 2006-07 2007-08
YEAR

STAFF STRENGTH VS PRODUCTIVITY

 STAFF STRENGTH Vs PRODUCTIVITY
year Numbers PRODUCTIVITY/mt

2004-05 154 175

2005-06 145 245
2006-07 140 280
2007-08 138 300

staff strength Vs productivity

160 350

155 300

productivity(MT)
250
150
numbers

200 Numbers
145
150 PRODUCTIVITY/mt
140
100
135 50
130 0
2004-052005-062006-072007-08
year
QUALITY ASSURANCE DEPARTMENT

Quality Assurance department is instituted for making high quality

products. The different customer needs different types of products at
different grades. It is the duty of QAD to provide products according to
their satisfaction. They conduct tests and make necessary changes for the
products to meet the quality.
FUNCTIONS OF QUALITY ASSURANCE DEPARTMENT

 To meet & inspection & testing requirements of reacting in

process and final products
 Reduction in customer complaints due to quality reasons
 Reduction in customer rejections due to quality reasons
 Use of statistical techniques for quality control
STAGES OF QUALITY CONTROL TEST
Quality control tests are conducted by way of in process tests and finished
goods testing. Inprocess tests are conducted during the process and is
carried out with the help of dust whereas finished goods test is carried out
after the production. The finished goods testing is done by taking one
sample from each tonne. The parameters for testing are surface area and
structure since the requirements for every customers are different.
VARIOUS QUALITY TESTS

1. Iodine absorbtion number

2. DBPA
3. Sieve residue
4. Heat loss
5. Fines
6. Pellet hardness
7. Pour density
8. Compressed DBP
9. Tint
10.CTAB
11. Ash
12.Toluene discolouration
13.Mass strength H.Ph

QUALITY POLICY

PCBL shall maintain market leadership of carbon black industry by being

the preferred choice of customers. PCBL shall meet:
 The requirements of product specification, On-time delivery
and appropriate service to optimize customers benefit
 Upgrade technology and business process to meet changing
needs of customers
 Continuously improve employees skills
 Be an environmental friendly organization
 WAREHOUSE DEPARTMENT
This department stores the product after packing till delivery.
PCBL has a storage capacity of 10000 tonnes. After testing from the lab, the
products are stored in a storage silo which has different compartments based
on grades. The packing process is done automatically through a machine
named auto packer. This machine performs the functions like bagging,
stitching and weighing automatically. There are two types of packing. One is
jumbo bag(l tonne) and paper bag(25kg). Packing s done as per customer
requirements. The two main function carried down by this department are

 Packing

 Loading.
 MARKETING DEPARTMENT

Marketing functions of PCBL are centralized. PCBL Cochin unit has no

separate marketing department. Marketing functions are carried out
through the head office of PCBL, Kolkata. PCBL has 5 regional offices
for coordinating the marketing process. Each regional offices have:
 1 regional marketing manager
 1 accountant
 Other supporting staff
Production plan for Cochin unit is given from the head office and
production is made accordingly. The logistics department in the plant acts
as the marketing department. They make necessary arrangement for
loading the products and coordinate other related activities. 90% of the
production is directly acquired by the tyre manufacturing companies and
remaining 10% by a soul distributor(A V Thomas & Co.).
 LOGISTICS DEPARTMENT

PCBL has no separate marketing department at its plant. Based on the

orders from customers, PCBL Kolkata gives a production plan to cochin
unit and produce accordingly. Since it has no separate marketing
department, marketing activities are carried out by logistics department at
its plant. They arrange trucks and other necessary materials for loading
the products. The manage the loading activities in the plant.
 CENTRAL EXCISE AND OIL DEPARTMENT

This department deals with all matters connected to excise,

inventory control and receipt of oil from suppliers. PCBL hired storage
tanks from Indian molasis company to store oil imported for production.
The terminal officer of PCBL give a delivery chellan which contains
details regarding truck number, time of removal, net weight. On the basis
of this delivery chellan the company gives permission to the trucks to
enter in to the company ,then the seal of the tank is broken and send to the
research and development department to test its status then after satisfying
the result the oil is deposited in to company’s tank . PCBL has 6 tanks
and each has capacity between 1000-1200 tones. The average requirement
of oil(raw material) range between200-220tones per day. Functions of
central excise & oil department
 Obtaining various licenses from
government as per requirement
 File necessary returns (ERI monthly
returns)
 Payment of duty Document necessary
files to be submitted to government
 Clearance of the vehicle after loading
 CAPTIVE POWER PLANT DEPARTMENT

Generating Process Power

The main functions of department are :

 Produce and supply electricity as per requirement
 Produce and supply steam

The off-gas which comes out of the bag filter after being separated from
carbon black is basically a bi-product gas with a low calorific value. This
waste gas is burned and heat generated from combustion is used to generate
steam in the boiler which in turn runs the turbine to generate power.
The combustion furnaces a re built to incorporate the three most critical
requirements for burning low calorific value process waste gas namely:
 Time for good mixing of combustile
 Temperature for bringing combustiles to its ignition point
 Turbulence to complete the combustion without going below the
ignition point

The combuster is a refractory linked furnace and is kept hot to provide

proper temperature. Cyclonic principle is used to provide turbulence and
intimate mixing of process waste gas and combustion air adequate
combuster volume is provided for the necessary residence time to complete
the oxidation of the combustile components.

The process waste gas enters the refractory linked combuster tangentially
through a rectangular part at high velocity. Tangential entry and high
velocity imparts a strong swirl to the process waste gas and the resulting
centrifugal force makes the process waste gas burn the hot refractory. The
part of the combustion air is forced into swirling process waste gas
through multiple radial nozzles in the refractory. This high momentum
jets help the less viscous air to mix well with the more viscous process
waste gas. The heat released from this combustion is used to generate
steam which is fed into steam turbines to generate power.

ENVIRONMENTAL DEPARTMENT
This department reduces pollution of air & water due to production.
The department adopt most appropriate production process considering
pollution and try to comply with legal requirements with pollution. The
company got ISO-14001(2004) for environment management system
from concerned authority. PCBL promoted an ETP Plant(Effluent
treatment plant) which reduces pollution by separating waste water and
oil through an oil separator. Efforts on environment, health and safety
continued unabated. Cochin unit was ranked third among large industries
in Kerala for its sustained and substantial effort in controlling pollution
during 2004. The company is actively engaged in providing voluntary
social services to residence around the factories. E.g.: medical camp, tree
plantation The company has bagged prestigious awards like coveted
ICMA award for novel energy conservation in chemical plants of
the country and CHEMTECH Foundation Award fro the wealth from
waste. IN 1997, it has also won the Best Company of the Year Award
for all around performance within the RPG companies.

Being a Petro-chemical industry, considerable importance has been given

to preserving global resources. It’s a pioneer in utilizing the waste gas
produced during the process to generate power, as well as burning then
waste gas in dryers to recover all sensible heat of the gas, thereby saving
substantial energy and reducing pollution level.

PCBL Kochi unit has become one of the green and environmental
friendly factories amongst those manufacturing carbon black in the world.
The company has installed secondary bag filters in its new state-of-the-art
manufacturing lien at its Karimugal Kochi based manufacturing unit. This
specialized filter is unique in this industry, as all carbon black factories in
India and around the world rely on the primary bag filter to prevent any
release of carbon black into the atmosphere.
The main functions of this department are:

 Setting and reviewing the environmental objectives

 Adopting the most appropriate manufacturing process
 Prevention of pollution
 Comply with applicable legal requirements
 Be an environmental friendly organization

ENVIRONMENTAL POLICY

 Adopting the most appropriate manufacturing process of carbon

black with continued improvements for prevention of pollution
 Complying with applicable legal requirements as
prescribed by the regulatory authorities and other
requirements of interested parties
Setting and reviewing the environmental objectives and targets
regularly with a view to achieve continual improvement
KEY RESULT AREAS OF THE ORGANIZATION
The GM at the head office plans out an early target for the better
performance of the company. In this yearly programme, he spots and
communicate the areas in which they want to concentrate more and also
describes the type of results the company wants. He awards scores for
successful completion of the works assigned. He gives the yearly plans to
the concerned officers at the plants and these officers have to report him
continuously about the progress of working within a specified date. These
concerned officers divides their work to the junior officers and the junior
officers are asked to submit reports periodically. If there is any failure in
the works done, then both the concerned junior officer and his senior
officers are responsible to make clarifications.
The head office can assess the working of programme by evaluating the
reports. Here the performance of each and every employees in the
organization can be analyzed by the top authority and can make necessary
changes. The head office can review the target on every six months after
the analysis of the performance in the different departments.

KEY RESULT ACTIVITIES

The activities that are carried out in different departments for
accomplishing the targets are called key result activities. Once the target
procured for the departments are given from the head office , the
department heads can plan the activities for attaining the target desired. If
there is any failure in the works done, then both the concerned junior
officer and his senior officers are responsible to make clarifications. This
helps the management to measure the competency and performance of the
employees. Department heads will continuously monitor the working of
target plans.
FINANCIAL STATEMENTS
 PROFIT & LOSS ACCOUNT for the year ended 31st March, 2007

INCOME Schedule Rupees

in Lakhs
Sales- Carbon Black 111,276.24
Less: Excise Duty 12,469.05 98,807.19
sales- Power 1,054.62
Other income 13 408.69
Closing stock of finished Goods 1.399.13
101,669.63

EXPENDITURE
Opening stock of finished Goods 1,998.35
Raw Materials Consumed 14 67,262.00
Expenses 15 22,657.89
Depreciation 2,036.48
Interest 3.260.27
97.214.99

PROFIT BEFORE TAXATION 4,454.64

Provision for Taxation: 525.38
Current Tax 1,501.82
Deferred Tax(release)/charge 74.24
Fringe Benefit Tax

PROFIT AFTER TAXATION 2.353.20

Balance brought forward from
previous year 1,999.18

Profit available for Appropriation 4,352.38

Proposed Dividend 505.06
Tax on Proposed Dividend 85.84
 3,761.48
Transferred to General Reserve 177

Balance carried to Balance Sheet 3,584.48

Earning per Share 16

Basic 11.75
Diluted 11.47

BALANCE SHEET as at 31st March, 2007

Schedule Rupees in Lakhs
SOURCES OF FUNDS
Share Holder’s Funds:
Share Capital 1 2,525.23
Convertible Warrants issued and allotted 447
Reserves and Surplus 2 13,608.20
16,580.43

Loan Funds:
Secured Loans 23,154.47
Unsecured Loans 3 1,838.21
24,992.68

Deferred Tax Liablity(Net) 4336.65

45.909.76

APPLICATION OF FUNDS
Fixed Assets 4
Gross Block 44,717.03
Less: Depreciation 18.686.55
Net Block 26,030.48
Capital Expenditure in Progress 2,107.61
28,138.09

Investments 5 2,805.52
Current Assets. Loans and Advances
Inventories 6 11,485.83
Sundry Debtors 7 23,366.55
Cash and Bank Balances 8 4,216.41
Other Current Assets 9 2,463.04
Loans and Advances 10 1,402.88
42,934.71
Less: Current Liablities and provisions
Liablities 11 27,480.89
Provisions 12 590.9
28,071.79
14,862.92
Miscallaneous Expenditure(to the extent not written off or adjusted)
Payments Under Voluntary Retirement Schemes 103.23
45,909.76

PROFIT & LOSS ACCOUNT for the year ended 31st March, 2008
INCOME Schedule Rupees
in Lakhs
Sales- Carbon Black 114,983.75
Less: Excise Duty 13,159.12 101,824.63
sales- Power 1,493.53
Other income 13 612.22
Closing stock of finished Goods 2,114.92
106,045.30

EXPENDITURE
Opening stock of finished Goods 1,399.13
Raw Materials Consumed 14 64,066.26
Expenses 15 25,343.18
Depreciation 2,013.59
Interest 1,944.70
944,766.86

PROFIT BEFORE TAXATION

11,278.44
Provision for Taxation: 16 2347.59

PROFIT AFTER TAXATION 8930.85

Balance brought forward from
previous year 3584.48
Profit available for Appropriation
12515.33
Proposed Dividend 1010.13
Tax on Proposed Dividend 171.67
 11,333.53
Transferred to General Reserve 900

Balance carried to Balance Sheet

10,433.53

Earning per Share 17

Basic 35.37
Diluted 34.19

BALANCE SHEET as at 31st March, 2008

Schedule Rupees in Lakhs
SOURCES OF FUNDS
Share Holder’s Funds:
Share Capital 1 2,525.23
Convertible Warrants issued and allotted 447
Reserves and Surplus 2 21,307.38
24.279.63

Loan Funds:
Secured Loans 26,457.96
Unsecured Loans 3 2,583.41
29,041.37

Deferred Tax Liablity(Net) 3,530.23

56,851.23

APPLICATION OF FUNDS
Fixed Assets 4
Gross Block 45,065.68
Less: Depreciation 20,575.23
Net Block 24,490.45
Capital Expenditure in Progress 13,051.04
37,541.49
Investments 5 2,805.52
Current Assets. Loans and Advances
Inventories 6 15,528.47
Sundry Debtors 7 21,756.76
Cash and Bank Balances 8 1,506.09
Other Current Assets 9 4,633.00
Loans and Advances 10 1,547.18
44,971.50

Less: Current Liablities and provisions

Liablities 11 27,373.49
Provisions 12 1,181.80
28,555.29
16,416.21
Miscallaneous Expenditure(to the extent not written off or adjusted)
Payments Under Voluntary Retirement Schemes 88.01
56,851.23

 Inadequate infrastructure at ports , resulting in detention of

vessels and higher transportation cost.
WEAKNESS

 The major raw materials for the company has close relationship
with crude oil prices.
 The company is also exposed
to risk from market
fluctuations of foreign
exchange, interest rate and
stringent statutory regulations
relating to environment
SUGGESTIONS

 If the company has its own vessels at the port, it is more profitable
than hiring of vessels in the port though initial investment is high.
 If the company has its own transportation facility from Port to
company, it will be profitable.
 If the plant has its own marketing department, it will be beneficial
for the company.
 If the company electricity to others, it can earn more profits.
 The company should conduct awareness programmes for the
society to impart their misunderstanding regarding pollution.
 If the company opens a training cell for students for doing projects, it
will help them to know more about the company.
 CONCLUSION
Phillips Carbon Black Ltd., part of the RPG group pioneered the carbon
black industry in India. It is now the leading producer of carbon black in
the country and the 7th largest carbon Black company in the world.
Rapidly evolving trends constantly revolutionize the manufacturing
industry. To achieve competitive quality PCBL has been continuously
upgrading the technology.

In the midst of a promising and optimistic business environment lies the

need for adapting more and more manufacturing solution capable of
delivering precision combined with state-of-the-art automation,
manufacturing technology, therefore assumes critical significance inorder
to achieve world class excellence to highlight these evolving trends in the
carbon industry globally. The processes in Cochin unit are controlled by
most advanced distributed control systems symbolizing the essence of the
state-of-the-art technology. The company uses latest equipments from
world’s manufacturer’s like M/s Chronos Richardsons (UK), Rekuperator
AG(Germany), Delmonego (Italy).
BIBLIOGRAPHY

 www.pcblltd.com
 Annual report of PCBL Ltd.