CERTIFICATE

This is to certify that this project report entitled “A STUDY ON LIFE IN

ORGANISATION WITH SPECIAL REFERENCE TO INDIAN RARE EARTH LIMITED

MANAVALAKURICHI” submitted in partial fulfillment of the requirement for degree in

MASTER OF BUSINESS ADMINISTRATION to ANNA UNIVERSITY TIRUNELVELI is

record of bonafide work carried out by I.J.VINEATH under my supervision and guidance and

no part of this project work has been submitted earlier for the award of any degree and that the

work has not been published part or full in any other magazines or journals

Navalkadu Signature of guide

DECLARATION

I hereby declare that the project report entitled “ A STUDY IN ORGANISATION WITH

SPECIAL REFERENCE TO INDIAN RARE EARTH LIMITED MANAVALAKURICHI “

written and submitted by me under the guidance of Mr. --------------------------------,senior lecturer

in management studies is my orginal work the empirical findings in the report are based on the

data collected me and I have not copied from any other report submitted to the university

I.J. Vineath

forward by Head of the department

ACKNOWLEDGEMENT

I am greatly indebted to Mr. ----------------------------------- lecturer in management

studies for this valuable guidance and supervision in completing this project report

I am thankful Mr.----------------------------------- .,chief general manager INDIAN RARE

EARTH LIMITED MANACVALAKURICHI for giving permission to undertake the study

Next, I thank Mr.--------------------------------- INDIAN RARE EARTH LIMITED

MANACVALAKURICHI for his valuable guidance

I thank Mr.--------------------------------- INDIAN RARE EARTH LIMITED

MANACVALAKURICHI for his valuable support

I am grateful to Mr. G. THANGARAJ, Assistant manager (welfare) and

N.GOPINATHAN Dy officer (records) INDIAN RARE EARTH LIMITED

MANACVALAKURICHI for his valuable suggestions and assistance to carry on the study

I also thank all the employees in the INDIAN RARE EARTH LIMITED

MANACVALAKURICHI for supporting me in completing the project report

CONTENTS

Chapter Title Title

Page Number

I

INTRODUCTION

1.1

1.2

II PROFILE

1.1 Industrial Profile

1.2 Company Profile

III DEPARTMENTS

1.1 Human Resource

1.2 Marketing

1.3 Finance

V FINDINGS AND SUGGESTIONS

APPPENDIX & BIBLIOGRAPHY

LIST OF TABLES

LIST OF TABLES

4.1 Distribution of table showing experience of employees

4.2 Distribution of table showing the employees qualification

4.3 Distribution of table showing age of employees

4.4 Distribution of table showing monthly income of employees

4.5 Distribution of table showing satisfaction of the employees with income

4.6 Distribution of table showing the opinion whether the job lower the social prestige

4.7 Distribution of table showing that the income satisfying the needs

4.8 Distribution of table showing that risk of illness in working condition

4.9 Distribution of table showing illumination and furnishing are comfortable at

workplace

4.10 Distribution of table showing stress and strain at the workplace

4.11 Distribution of table showing reelect health due & job

4.12 Distribution of table showing freedom of talking

4.13 Distribution of table showing provided good welfare facilities & employees

4.14 Distribution of table showing provided good leave facilities

4.15 Distribution of table showing energy and time spend on job affect life adversely

4.16 Distribution of table showing the present job regardless of pay received

4.17 Distribution of table showing the co-operation with the co-workers

4.18 Distribution of table showing the workers involved the trade union

CHAPTER I

INTRODUCTION

SYNOPSIS

1.1 LIFE IN ORGANISATION

1.2 COMPANY PROFILE

LIFE IN ORGANISATION

Each and every organization has its own importance in the economic wealth of the nation. Different

organization meets different needs of people by offering different products and services. Due to globalization,

the world has changed into a global village. In this fast changing business scenario, it is imperative for every

entrepreneur to have a vivid understanding of the functional application of the new age business. As a part of

the academic curriculum each student has to undertake an organizational study to get a practical exposure.

This study is conducted at INDIAN RARE EARTHS LIMITED MANAVALAKURICHI

An organization can be described as a open system that has transactions with its

environment in order to survive and prosper an organization must be obtained a favourable ratio of

inputs and outputs

LOCATION

Manavalakurichi is a `panchayat town` located in Kanyakumari district of the southern

state of India, Tamil Nadu. Manavalakurichi is around 25 km north of Kanyakumari. The nearest

railway station is the Nagercoil Junction Railway Station. It is located between 8.13° North

latitude and 77.3° East longitude. Manavalakurichi is located at 8°08′N 77°18′E / 8.13°N

77.3°E. It has an average elevation of 0 metres (0 feet). Indian Rare Earths Limited which exports

Monoxite, Ilmenite etc.., is situated here Bank : 1. Indian Overseas Bank 2. State Bank of

Travancore 1.only one ATM in IRE . 2.one very BIG pond near cheramangalam 3.One CSI

community hall in cheramangalam. 4.One Sivan Temple in Kannivilai near cheramangalam.

This ` panchayat town` has a rich deposit of mineral sand. One of the oldest Mineral Separation

Plant of Indian Rare Earths Limited is located here.

The deposit is quite rich with respect to Ilmenite, Rutile and Zircon. And the mineral Ilmenite

happens to be of weathered variety analyzing 60% Titanium Dioxide (TiO2). The present annual

production capacity of Chavara unit engaged in dry as well as wet (dredging/ up gradation)

mining and mineral separation stands at 2,00,000 tone of Ilmenite, 1,14,500 tones of Rutile,

11,750 tones of Zircon and 10,000 tones of Sillimanite. In addition to that, the plant has facilities

for annual production of ground Zircon called Zirflour and Micozir of the order of 6000 tones and

300 tones respectively.

IREL manavalakurichi is one of the oldest and leading public sector undertakings under the

Department of Atomic Energy (DAE). It is an ISO 9001:2000, ISO 14001:2000; OHSAS 18000

certified company supplies beach sand minerals to the foreign and domestic market. It caters the

requirements of developed countries like U.S.A, U.K, Germany, Australia, Japan etc. The major

mineral products of IREL are Ilmenite, Rutile, Sillimanite, Zircon and Zirflour

IRE in manavalakurichi is known for supplying of Ilmenite (TiO2 bearing mineral) to the TiO2

industry. IREL Chavara is located 10 km north of Kollam, 85 km from Thiruvananthapuram and 135

km by road Kochi is perhaps blessed with the mineral sand deposit of the country. The plant operates

on a mining area containing as high as 40% heavy minerals and extending over a length of 22km in

the belt of Neendakara and Kayamkulam. The deposit is quite rich with Ilmenite, Rutile and Zircon

and mineral Ilmenite happens to be of weathered variety analyzing 60% TiO2. The present annual

production capacity of Chavara unit engaged in dry as well as wet (dredging/up gradation) mining

and mineral separation stands at 200000t of Ilmenite, 114500t of Rutile,1175t of Zircon, and 10000t

of Sillimanite. In addition the plant has facilities for annual production of ground Zircon called

Zirflour (-45 micron) and Microzir (1-3micron) of the order of 6000t and 500t respectively.

IREL Chavara is one of the oldest and leading public sector undertakings under the control of

Department of Atomic Energy. It is an ISO 9001:2000, ISO14001:2004, and OHSAS18001:1999

certified company supplies beach sand minerals to the foreign and domestic customers. The major

minerals products of IREL are Ilmenite, Rutile, Sillimanite, Zircon and Zirflour.

Scope of the study

IREL is one of the major mineral producing public sector companies of its kind in India

In this study I will be covering organization as a whole briefly. An environment can be described as

an open system that has transactions with its environment. In order to survive and prosper , an

organisation must be obtained a favourable ratio of inputs to outputs. Necessary resource inputs must

be found for the organisation’s products or services. If a stable input-transformation-output cycle can

be maintained, then more efficient transformations procedure can be maintained. Thus an

organisation attempts to control over undependable source of supply and to insulate the core

transformation processes from any uncontrollable variations in input supplies or output demand.

Each organisation usually has one or more formal and explicit goals. One central goal of nearly all

organisations, whether explicit or implicit, is survival. Economic, political, cultural and scientific

developments in the external environment can appear as an organisation’s goal and have a bearing

on the life of people in that organisation. Major environmental elements affecting a business

organisation include customers, competitors, government agencies, consumer groups, labour unions,

owners or stock holders, the cultural milieu, suppliers of material and energy and socioeconomic

stability. It is essential to develop an adaptation to environmental changes because an organisation is

dependent on the environment in so many ways. Thus, it is important to monitor outside events and

develop plans to cope with relevant changes. Managing changes has become a priority area for

organisational behaviourists.

Mullins observes: “One particular aspects of the relationship between the individual and the

organisation is the concept of the psychological contract. It involves a process of giving and

receiving by the individuals and by the organisation. The psychological contract covers arrange of

expectations of rights and privileges and obligations which do not form a part of formal agreement

but still have an important influence on people’s behaviour”.

The nature and extent of individual expectations vary widely. It is difficult to list the range of

implicit individual expectation. And these change overtime, but these may include that the

organisation. These expectations are not bolstered by a statutory requirement placed upon the

organisation. Instead, they relate more to the idea of the social responsibility of management. The

organisation also has implicit expectations of its members: accept the ideology of the organisation,

to work diligently in pursuit of organisational objectives, not abuse goodwill shown by management,

uphold the image of organisation, show loyalty and not betray the position of trust.

The organisational side of the psychological contract places emphasis on expectations,

requirements and constraints which often differ from and maybe conflict with the individual

expectation. For example, French suggests the following list of organisational expectations and

requirements.

a) Achieving organisational goals that are different from individual member’s personal goals.

b) Having sufficient involvement, commitment and initiative from organisational members.

c) Requiring individuals to assume certain organisational roles.

d) Having people perform certain tasks effectively and efficiently.

e) Requiring participants to accept authority and to assume responsibilities.

f) Achieving integration and co-ordination of activities.

g) Requiring adherence to policies, rules and procedures.

h) Attaining responsiveness to leadership and influence.

i) Developing sufficient loyalty to maintain the organisation as a social system.

It is unlikely that all expectations will be fully meet. There is a continuous process of

balancing and explicit and implicit bargaining. The nature of this expectation is not formally defined

and although the individual member and the organisation may not be consciously aware of them,

they still affect their relationships and influence behaviour.

The psychological contract is a useful concept of examining the socialization of new staff

members to the organisation. According to Kottar, for example, early experience has a major effect

on the individual’s career in an organisation and level of productivity. The extent of match between

individual and organisational expectations also influences employee willingness and the organisation

continuing to employ them.

Organisation is a principle of life without control over vital functions, co-ordinations between

organisation and regeneration of dead tissue, a living body soon turns into a corpse. Many valuable

species survive because of social organisation. These ants building their colonies antelopes move in

hard and monkeys have their troops. In this rudimentary specialisation of function, division of labour

and control and co-ordination through social co-operation increase the chances of survival of the

members.

Modern life is inconceivable without the invention of formal organisation. Without the rich

network of varied formal organisation in a developed society, their material prosperity would

quickly vanished social economic development implies as a necessary condition, the setting up and

effective functioning of a immense variety and number of formal organisation. Not just business

enterprises but every other form of organisation must thrive if socioeconomic development is to take

place. This is because of high degree of inter dependence of various organisational forms.

Life in formal organisation is rather different from life in social institutions like the family or the

community. It is far more disciplined, structured and impersonal and difficult to adjust for people

socialised into informality, expectations of warm interpersonal relationship, highly flexible time

schedules and much freedom of movement. But for socio economic development take place these

organisations must work effectively.

Formal organisation may be defined as collectives that are created by human for pursue specific

purposes with the help of formal structure and to provide goods and services to society that

otherwise either cannot be produced or produced at a very high cost, in which decision are taken

mainly on the basis of formally allocated authority to make decisions.

The formal organisation may not be able to satisfactorily provide the more sublime things of life

like love, peace and bliss. And it often does sell to society some damaging goods and services. The

organisation can frustrate the people who work in it through its rules and regulations. But it can be

designed to provide enormously varied range of goods and services for meeting human needs. It is

also enormously productive. It can provide millions of tonnes of steel, millions of car, banking

services for millions of customers and financial security for hundreds of millions of citizens without

these amazing tool civilizations is impossible.

Organisational climate is very important concept to be considered in studying and climate is very

important concept to be considered in studying and analysing management of organisations because

it has a profound influence on the outlook, wellbeing and attitudes of organisational members and on

their total performance.

The climate affects the behaviour of people in three distinct ways.

1) Defining the stimuli that confront the individual.

2) Placing constraints upon the individual freedom of choice.

3) Providing source reward and punishment.

In the literature of management the definition of organisation climate is “A relatively enduring

quality of the internal environment that is experienced by its members, influences their behaviour

and can be described in terms of values of a particular set of characteristics of the organisation.

Organisational climate is the manifestation of the attitudes of organisation members towards the

organisation itself. An organisation tends to attracted and keep people who fit climates so that its

patterns are perpetuated atleast to some extend.

INDUSTRY PROFILE

Introduction:

Organisation in the process of combining work, which individuals and groups have to perform

with the faculties necessary for its execution. So that they provide the boot channels for the efficient

systematic positive and co-ordinated application of the available effort.

I.R.E being an organisation, having the goal of earning profit for which people work in a

system with work relations and climate.

I.R.E is a large unit employing 803 persons in Manavalakurichi in Kanyakumari Dist in Tamil

Nadu state. The organisation started functioning on 24th April 1964 when it was taken by the present

management from the erstwhile private employer “Hopkin and William” and “Travancore Minerals

Company”. The one of which was started in the year

Mineral In million tones Contribution to world

Rutile 18 10%

Zircon 21 14%

Monazite 8 7%

Sillmanite 130 25%

Ilmenite 107 35%

In India the installed production capacity for Ilmenite is around 5-2 lakh tpa (5-6% of global

Ilmenite production) and the production of Ilmenite and Rutile during 2004-2005 was over 3-5 lakh

tonnes and 1300 tonnes respectively.

Titanium Resource and value addition

Ti mineral TiO2 USD/Ton

mineral feed stock

Ilmenite 50-60 200-250

Manmade feed stock

Stag

Syn-Rutile

87

93

575

878

TiO2 Pigment

Rutile GR

Antase GR

99.8

99.8

3666

3333

Ti Sponge 99%Ti 11111

Ti mill products 99%Ti 22222

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

Key success factor for the beach sand mineral industry are:

Increase the Ilmenite capacity to reach economic scale of production.

Value addition projects in minerals and rare earths compounds.

Initiate action to develop new mining areas.

Forward integrate through stake in world leader in pigment industry like Tinfoss, DuPont or

selling up a pigment plant.

Explore other mining options in neighbouring countries.

Social and political Environment

COMPANY PROFILE

PROFILE OF INDIAN RARE EARTHS LIMITED

On August 18, 1950, Indian Rare Earths Limited (IREL) was incorporated as a private limited

company -jointly owned by the Government of India and Government of Travancore, Cochin with

the primary intention of taking up commercial scale processing of monazite sand at its first unit

namely Rare Earths Division (RED), Aluva, and Kerala for the recovery of thorium.

After becoming a full fledged Central Government Undertaking in 1963 under the

administrative control of Department of Atomic Energy (DAE), IREL took over a number of private

companies engaged in mining and separation of beach sand minerals in southern part of the country

and established two more Divisions one at Chavara, Kerala and the other at Manavalakurichi(MK),

Tamil Nadu.

After a gap of about 20 years, IREL commissioned its largest Division called Orissa Sand

Complex (OSCOM) at Chatrapur, Orissa. Today IREL operates these four units with Corporate

Office in Mumbai and produces/sells six heavy minerals namely Ilmenite, Rutile, zircon, monazite,

Sillimanite and garnet as well as various value added products. IREL is making profit for the last 6

years with its sales turnover reaching a peak exceeding Rs. 2600 million in 2000-01, with export

component of above Rs. 1000 million.

Chavara plant is engaged in the processing of beach sand deposits available on the coastal belt of

Neendakara- Kayamkulam.

BRIEF HISTORY

IREL’s history should not be narrated without mentioning the name of German Chemist Mr. Her

Schomberg who has realized that the shining yellowish- brown sand particles sticking to coir, a

coconut fiber shipped from India (1909), contained Monazite.

1948 The Government of India set up the Atomic Energy Commission under the Chairman ship of

Dr. Homi Bhabha. The export of Monazite was stopped and the possibility of setting up a facility to

process the beach sand mineral for the production of Rare Earths was examined.

1950 Indian Rare Earth Limited was incorporated in Bombay.

1951 IREL became a full fledged Central Government undertaking under Department of Atomic

Energy and commenced construction of its Rare Earths plant at Udyogamandl in Kerala.

1952 Rare Earth was dedicated to the nation on December 24, by the late Prime Minister, Pandit

Jawaharlal Nehru.

1955 Opening of Thorium factory off Bombay.

1965 Opening of Minerals Division at Quilon in Kerala State with manufacturing facilities at

Chavara in Kerala and at Manavalakurichi at Tamil Nadu and a giant mineral sand separation and

synthetic Rutile plant at Chatrapur in Orissa (1986) OSCOM

OUR SISTER PLANTS

CHAVARA PLANT

ALUVA

ORISA SAND COMPLEX

NEW DELHI

BANGLORE

MUMBAI

Products

IREL Chavara plant produces the major heavy beach sand minerals like Rutile, Zircon, Sillimanite,

and Ilmenite. The product range includes value added products like Zirflor and Microzir.

Annual production capacity in Chavara plant

Product Production capacity

Ilmenite 200000t

Rutile 1145000t

Zircon 1175t

Sillmanite 10000t

Zirflour 6000t

Microzir 500t

PRODUCTS AND ITS USES

ILMENITE

It is mainly used for the manufacture of titanium –di-oxide(white pigment) which is inturn used

in paints ,paper, rubber, textiles etc....

It is also the raw material for manufacture of Titanium alloy

RUTILE

It is mainly used for coating of welding electrodes and also for the production of

Titanium di oxide and Titanium tera chloride used for production of metal /sponge

Uses and economic importance

Acicular crystals of rutile protruding from a quartz crystal

Rutile, when present in large enough quantities in beach sands, forms an important constituent

of heavy mineral sands ore deposits. Miners extract and separate the valuable minerals (typically

rutile, zircon, and ilmenite). The main uses for rutile are the manufacture of refractory ceramic, as

a pigment, and for the production of titanium metal.

Finely powdered rutile is a brilliant white pigment and is used in paints, plastics, paper, foods, and

other applications that call for a bright white color. Titanium dioxide pigment is the single greatest

use of titanium worldwide. Nanoscale particles of rutile are transparent to visible light but are highly

effective in the absorption of ultraviolet radiation. The UV absorption of nano-sized rutile particles

is blue-shifted compared to bulk rutile, so that higher energy UV light is absorbed by the nanoparticles. Hence,

they are used in sunscreens to protect against UV induced skin damage.

Small rutile needles present in gems are responsible for an optical phenomenon known as asterism.

Asterated gems are known as "star" gems. Starsapphires, star rubies, and other "star" gems are

highly sought after and often more valuable than their normal equivalents.

Rutile is widely used as a welding electrode covering.

Rutile is a part of the ZTR index to classify highly-weathered sediments.

Production of Titanium dioxide pigment from Rutile

The titanium dioxide pigment is extracted directly from rutile, which contains 92 – 96 % TiO2. This is done

by calcining a mixture of rutile, coke and chlorine to form gaseous titanium tetrachloride (TiCl4). 

TiO2(s) [impure]   +   C(s)   +   2Cl2(g)        TiCl4(g)   +   CO2(g)

The titanium tetrachloride is then condensed to a liquid and the impurities separated as solids.   It is then

reheated to a gas and mixed with hot oxygen to form very fine crystalline rutile (raw white pigment).

              TiCl4(g)   +   O2(g)         TiO2(s)   +   2Cl2(g)

Flux Coating

Improved electric welding rods are produced by the use of coatings containing rutile.  This is due to

the fact that it stabilises the electronic arc and reduces the viscosity of the slag formed during

welding.  

Uses And Economic Importance

Rutile, when present in large enough quantities in beach sands, forms an important constituent

of heavy mineral sands ore deposits. Miners extract and separate the valuable minerals typically

rutile, zircon, andilmenite. The main uses for rutile are the manufacture of refractory ceramic, as

a pigment, and for the production of titanium metal.

Finely powdered rutile is a brilliant white pigment and is used in paints, plastics, paper, foods,

and other applications that call for a bright white color. Titanium dioxide pigment is the single

greatest use of titanium worldwide. Nanoscale particles of rutile are transparent to visible light but

are highly effective in the absorption of ultraviolet radiation.

The UV absorption of nano-sized rutile particles is blue-shifted compared to bulk rutile, so

that higher energy UV light is absorbed by the nanoparticles. Hence, they are used in sunscreens to

protect against UV induced skin damage.

Small rutile needles present in gems are responsible for an optical phenomenon known

as asterism. Asterated gems are known as "star" gems. Star sapphires, star rubies, and other "star"

gems are highly sought after and often more valuable than their normal equivalents.

Rutile is widely used as a welding electrode covering.

Rutile is a part of the ZTR index to classify highly-weathered sediments.

ZIRCON

It is used for foundries , ceramics and refactries ,used as the raw materials for the

manufacture of zirconium oxide ,

Its compounds matal & alloys of zirconium which find applications in many chemical

electronic and neculer industries

Zirconium (pronounced /zərˈkoʊniəm/ zər-KOH-ni-əm) is a chemical element with the

symbol Zr and atomic number 40. Its atomic mass is 91.224. It is a lustrous, grey-white,

strong transition metal that resembles titanium. Zirconium is used as an alloying agent for its strong

resistance to corrosion. It is never found as a native metal; it is obtained mainly from the

mineral zircon, which can be purified with chlorine. Zirconium was first isolated in an impure form

in 1824 by Jöns Jakob Berzelius.

Zirconium has no known biological role. Zirconium forms both inorganic and organometallic

compounds such as zirconium dioxide and zirconocene dichloride, respectively. There are five

naturally occurring isotopes, three of which are stable. Short-term exposure to zirconium powder

causes minor irritation, and inhalation of zirconium compounds can cause skin and lung granulomas.

Applications of zirconium

Because of zirconium's excellent resistance to corrosion, it is often used as an alloying agent in

materials that are exposed to corrosive agents, such as surgical appliances, explosive primers,

vacuum tube getters and filaments. Zirconium dioxide (ZrO2) is used in laboratory crucibles,

metallurgical furnaces, as a refractory material,[6] and it can be sintered into a ceramic

knife. Zircon (ZrSiO4) is cut into gemstones for use in jewelry. Zirconium carbonate

(3ZrO2·CO2·H2O) was used in lotions to treat poison ivy, but this was discontinued because it

occasionally caused bad skin reactions.[4]

Ninety percent of all zirconium produced is used in nuclear reactors (in the form of zircaloys)

because of its low neutron-capture cross-section and resistance to corrosion.[5][6] Zirconium alloys are

used in space vehicle parts for their resistance to heat, an important quality given the extreme heat

associated with atmospheric reentry.[9] Zirconium is also a component in some abrasives, such as

grinding wheels and sandpaper.[10] Zirconium is used in weapons such as the BLU-97/B Combined

Effects Bomb for incendiary effect.

High temperature parts such as combustors, blades and vanes in modern jet engines and stationary

gas turbines are to an ever increasing extent being protected by thin ceramic layers which reduce the

metal temperatures below and keep them from undergoing (too) extensive deformation which could

possibly result in early failure. They are absolutely necessary for the most modern gas turbines

which are driven to ever higher firing temperatures to produce more electricity at less CO2. These

ceramic layers are usually composed by a mixture of zirconium and yttrium oxide.[1

What are the common uses of aluminium zirconium?

Zirconium is used for:

* nuclear reactor components

- zircaloy 2 (alloy with some Sn, Cr, Fe, O): nuclear fuel rods

- zircaloy 4: calandria

- Zr-Nb: pressure tubes

- U-Zr-Er-H: nuclear fuel

* alloys for space aircraft and aviation (Zr-Al)

* to made pumps, pipes and valves for special processes in chemical industry

* getter,

* flash bulbs filaments

* component of incendiary bombs

* crucibles, etc. (cheaper than platinum crucibles) 

MONAZITE

Extraction of thorium nitrate and rare earth compounds used in various chemical and

electronic industries

 high density monazite minerals will concentrate in alluvial sands when released by the weathering

of pegmatites. These so-called placer deposits are often beach or fossil beach sands and contain other

heavy minerals of commercial interest such as zircon and ilmenite. Monazite can be isolated as a

nearly pure concentrate by the use of gravity, magnetic and electrostatic separation.

Monazite sand deposits are inevitably of the monazite-(Ce) composition. Typically the lanthanides

in such monazites contain about 45 - 48 % cerium, about 24% lanthanum, about 17% neodymium,

about 5% praseodymium, and minor quantities of samarium, gadolinium, and yttrium.

Uses of monazite

While the main products of mineral sands mining are titanium oxide and zircon, monazite is

also a significant component. In some deposits xenotime also occurs. In the past these were

often returned with the tailings, but today they are often processed to rare earth oxides

containing thorium which are used in:

 Televisions - for luminescence and colour

Electronics - for a variety of components including high-performance magnets (cerium)

Robots - electric stepping motors

Computers - monitor luminescence, electronic components and bubble memory systems

Lighting - energy efficient lanthanum lamps

Medicine - X-ray screens, fibre optics, pain-killing elements

Chemistry – catalysts

Ceramics - pigment.

Products from monazite are also used in metallurgy, flints, ferro-alloys, glass polishing,

jewellery, fuel cells, refractories, lamp mantles (thorium) and welding electrodes.

 Yttrium from xenotime has been used in the most effective superconductors.

GARNET

It is used in the manufacture of abrasives ,grainding wheels , for polishing glass, T.V

tubes, water filtration, etc…

Red garnets were the most commonly used gemstones in the Late Antique Roman world, and

the Migration Period art of the "barbarian" peoples who took over the territory of the Western

Empire. They were especially used inlaid in gold cells in the cloisonné technique, a style often just

called garnet cloisonné, found from Anglo-Saxon England, as at Sutton Hoo, to the Black Sea.

Pure crystals of garnet are still used as gemstones. The gemstone varieties occur in shades of

green, red, yellow and orange. In the USA it is known as thebirthstone for January. It is the state

mineral of Connecticut, NewYork's  gemstone, and star garnet (garnet with rutile asterisms) is the

state gemstone of Idaho

Industrial uses

Garnet sand is a good abrasive, and a common replacement for silica sand in sand blasting.

Alluvial garnet grains which are rounder are more suitable for such blasting treatments. Mixed with

very high pressure water, garnet is used to cut steel and other materials in water jets. For water jet

cutting, garnet extracted from hard rock is suitable since it is more angular in form, therefore more

efficient in cutting.

Garnet paper is favoured by cabinetmakers for finishing bare wood.

Garnet sand is also used for water filtration media.

As an abrasive garnet can be broadly divided in two categories, blasting grade and water jet grade.

The garnet, as it is mined and collected, is crushed to finer grains; all pieces which are larger than 60

mesh (250 micrometres) are normally used for sand blasting. The pieces between 60 mesh (250

micrometres) and 200 mesh (74 micrometres) are normally used for water jet cutting. The remaining

garnet pieces that are finer than 200 mesh (74 micrometres) are used for glass polishing and lapping.

Regardless of the application, the larger grain sizes are used for faster work and the smaller ones are

used for finer finishes.

There are different kinds of abrasive garnets which can be divided based on their origin. The largest

source of abrasive garnet today is garnet rich beach sand which is quite abundant on Indian and

Australian coasts and the main producers today are seen to be Australia and India.

This material is particularly popular due to its consistent supplies, huge quantities and clean

material. The common problems with this material are the presence of ilmenite and chloride

compounds. Since the material is being naturally crushed and ground on the beaches for past

centuries, the material is normally available in fine sizes only. Most of the garnet at the Tuticorin

beach is 80 mesh, and ranges from 56 mesh to 100 mesh size.

River garnet is particularly abundant in Australia. The river sand garnet occurs as a placer deposit.

Rock garnet is perhaps the garnet type used for the longest period of time. This type of garnet is

produced in America, China and western India. These crystals are crushed in mills and then purified

by wind blowing, magnetic separation, sieving and, if required, washing. Being freshly crushed, this

garnet has the sharpest edges and therefore performs far better than other kinds of garnet. Both the

river and the beach garnet suffer from the tumbling effect of hundreds of thousands of years which

rounds off the edges.

Garnet has been mined in western Rajasthan for the past 200 years, but mainly for the gemstone

grade stones. Abrasive garnet was mainly mined as a secondary product while mining for gem

garnets and was used as lapping and polishing media for the glass industries. The host rock of the

garnet here is garnetiferous mica schist and the total percentage of garnet is not more than 7% to

10%,which makes the material extremely costly and non economical to extract for non-gemstone

applications.

SILLIMANITE

It is mainly used for the manufacture of high temperature referactories insulators and

ceramic industry

Uses of Sillimanite:

It is used to produce industrial items like spark plugs.

It is used as a gemstone and for ornamental purposes.

Places where Sillimanite is found:

Brazil

India

Myanmar

New England

North Carolina

Connecticut

France

Board of management

IREL shares are wholly owned by Govt; of India. The board of management consists of

seven directors under the chairman ship of Mr. Siva Subramanian appointed by Govt; of India.

There are three fulltime directors and four part time directors who are nominated by DAE and state

Governments in addition, nominee from the president of India also participate in Board meetings.

Approximately 2750 people are employed by IREL in all units and they constitute one of its greatest

resource.

VISION

o To be a leading supplier of beach sand minerals from Asia by supplying 10% of the world

demand for beach sand minerals over the next 7-10 years. It would be achieved by maximum

utilization of existing capacities, new capacity addition, and capturing major portion of the

incremental growth in the global TiO2 feedstock demand and by developing competitive

value added Rutile, zircon, Sillimanite and garnet products that make handsome contribution

to revenue and profits.

o To become the preferred rare earths products supplier (producer and / or marketer) for

domestic customers to ensure long-term sustenance and profitability of rare earths business

and to achieve adequate efficiency in monazite processing as long as it is necessary /

worthwhile.

MISSION

To harness beach sands in an environmentally and socially responsible manner for efficiently

producing minerals and their traditional and innovative value-added products of world-class

quality, that are used to make increasingly superior / novel products required by customers.

To play a dominant role in developing domestic rare earths market by producing and / or

marketing the quality value-added products to realize maximum potential of rare earths in a

range of applications.

To build a professional, creative and committed workforce and nurture an environment that

fosters learning, sharing and development.

Awards and Achievements

IREL has fairly good record in its performance during the past decade. From 1997-1998 onwards

all out team effort was taken to achieve name plate capacity for the mining and mineral separation

plants in all the three locations, Total sales turnover, share of export and profit after tax started

improved by leaps and bounds and the company recorded increasing profit since then. In addition to

production and financial performance, IREL has excelled in the areas of marketing, safety and

human resource management. In recognition of the company’s efforts, SCOPE awarded prestigious

Silver Trophy of ‘SCOPE’ award for excellence and outstanding contribution to the Public Sector

Management – Special turnaround Category for the year 1999-2000. During the year 2006-07, IREL

posted all time high sales turn over exceeding 3600 million with export component over Rs. 1000

million & all time high Profit Before tax of Rs. 1000 million.

Future Outlook

Company is implementing expansion of all the three Mineral Separation Plants. With the

expansion activities in progress, the Company is poised to reach greater heights in the years to come.

The phase-I expansion at Chavara is nearing completion (in full) and the expansion at MK is

expected to take off soon. Expansion of capacity at OSCOM is also progressing.

In addition to expansion of Mineral Separation Plants, the Company is planning to restart the

manufacture of Rare Earths products in big way with implementation of Monazite Processing Plant

(MOPP) at OSCOM which is likely to commence commercial operation by July, 2009.

The successful completion of expansion activities will bring forth a new era of higher capacity

and profits and the Company, it is hoped, will attain the pinnacle of glory. The Company will

continue to be one among the most successful

DEPARTMENTS IN IRE

1.MARKETING AND SALES DEPARTMENT

Marketing occupies an important position in the organization of any business unit. Marketing

function necessary to satisfy the customer such as financing, storage risk bearing and after sales

services etc. Marketing is a vital connecting link between the producer and the customer.

Objective of marketing department

Maximum turn over

Maximum profit

Maximum customer relation

Maximum customer satisfaction

Sales and distribution system

The organization enjoyed monopoly till 1998, only public sectors are present in the market.

After that private sectors are come to the market. But in Kerala they enjoy monopoly. Direct selling

is the main system of the organization. The customers primarily pay the full amount as DD in

advance and then the company gives the product.

For domestic sales orders are received as follows

1. Through head office

2. directly from customers

3. transferred from other units of IRE

Pricing

Pricing is very crucial decision for marketing management. The objectives of the firm is

to get maximum profit, The price will have to accommodate with additional cost involved in

respect of packaging, labelling etc. Consolidated marketing are done in IRE. Approved prices

of various products are received from head office at time to time and maintained by sales

department.

Customer visit

Every quarter five customer are selected for a visit to know the prevailing market condition

Customer feedback

Every year customer questionnaires are circulated to the customers and circulated to the

customers and suitable strategy for future marketing. Competitors Even though the company enjoys

a near monopoly till recently. But now it has some competitors in Domestic and foreign markets.

Companies like Vaizag (A.P), VV Minerals, Tutucorin (T.N) in the domestic market and like RGC

Ltd, Western sands(both in Australia) Titania and Tinfos (Norway), Richard’s Bay Minerals Ltd

(South Africa)

Major customers

KMML

CMRL

Steel companies

Ceramic companies

Reoinda

Kerr-McGee Corporation

Dugon

The last three companies are regular customers who producing titanium di oxide (TiO2).

Market segmentation

The company finds its major market in foreign countries. The IREL exports mineral like Ilmenite,

Zircon &Sillimanite to many countries mainly U.S.A, Canada, UK, France, West Germany, Japan

etc. The head office in Mumbai makes the export contract . Exporting is done through shipment. The

company makes shipping bills and packs the items in cargo for distribution products in the domestic

market. The company uses road transportation system.

Market share

The company has 90% market share in domestic market and 2% in foreign market. Till 1998, the

company enjoyed monopoly in rare earth products. But now some competitors are present in other

states. In Kerala still the company enjoys monopoly.

SALES FOR THE LAST FOUR YEARS

Hierarchy structure of marketing and sales department

Fig 3:1: chart showing the hierarchy structure of marketing and sales `

department

`

2.MINING DEPARTMENT

In IRE the raw material for production process are collected through mining process. The production

process starts with the collection of beach sand from various places. For collecting this beach sand

IRE uses the following two Methods: Sea Washing and dredging.

Sea washing

Raw sand is collected from sites where deposits are occurred due to natural beach

washing .Presently IRE owns two sites one at Vellanathuruthu / Ponmana and one at 132 mining

area. There is a heavy mineral deposit over a length of 22.5 km. They are found over or coastal belt

having an average width of 800 meters. The sea waves deposits the mineral sand on the beach sand

on the beach line and it is collected. Then it is send to the mineral separation plant

Dredging

Presently IRE, Chavara have two floating dredges (material recovery plant MRP) at Karithura and

Puthenthura. These plants are constructed with the help of Neumann Equipments private limited

Australia. Each plant was cost about Rs 10 crore as establishment cost.

The plant DWUP used for the mechanized recovery of minerals from the beach sand. The DWUP

consists of a floating dredging plant operated hydraulically and electrically which could be moved

from one place to another based on the requirement. The plant is floating in an area having a water

depth of 6 meters. The sand along with water in the form of slurry (a mixture of sand and water) is

pumped to the heavy up gradation equipments. The equipments consist of a series of transfer bin

rotating screens called trommel, spirals separators, hydrocyclones, pumps etc all being electrically

operated. The DWUP can dredge about 40 to 60 tones per hour. The raw sand having an average at

40% heavy minerals is fed to the floating plant and updates it to 85 to 90% mineral content. The

waste sand (quartz) from DWUP is used for backfill the dredged area.

Department structure as follows

Fig 3:2: chart showing the hierarchy structure of mining department

3. PRODUCTION DEPARTMENT

The main function of this department is to separate the minerals from raw sand using the physical

resources so as to provide desired utility to customer while meeting other organizations objectives,

efficiency and adaptability. IRE takes the nature boundary in the form of beach sand and separates it

to extract rare earths and minerals. These materials go for a wide variety of products like ceramics

paints, flints of lighters, detergent etc. IRE produces the major beach sand heavy minerals like

Ilmenite, Rutile, Zircon, Sillimanite, brown Ilmenite and value added products like Zirflor and

Microzir.

MAJOR FUNCTIONS OF THE DEPARTMENT

Prepare detailed raw material plans and ensure the incoming Quality standard and their usage

Constantly evaluate alternative sources for raw materials, direct trial of the same and help

management to firm up such source

Prepare detailed production plan in consistent with Company’s production objectives; direct

and control the implementation of the same

Carry out investigation and guide management on long term measure towards achievement

of goals of expansion in the area of production and quality

Evolve standard operating procedures for different process and equipment document standard

operating data and periodical update the same

Department structure as follows

Various tasks of production department

1. Prepare detailed production plans consistent with company’s production objectives and direct

control the same.

2. Constantly evaluate alternate source of raw materials, direct trials of the same and help

management to firm up such sources.

3. Carryout investigation and guide management on long term measures towards achievements

of the goals of expansion in the across of production and quality

4. co-ordinate with customer service department and initiate actions in different departments to

take corrective actions from the points of the quality assurance to customers

5. Ensure implementation of safety measures in the operations, equipments and process to avoid

dangers to the structures and man and equipment.

6. Evolve standard operating for different process and equipments, documents, standard

operating data and periodically update the same

PRINCIPLES OF SEPARATION

7. Conductivity separation:

The heavies from HUP plant is dried using fluidized Bed Dries (FBD). The dried mineral

concentrate is subjected to electrostatic separation using high tension electrostatic separation

and two fraction namely conductivity and non conductivity minerals are separated out.

8. Magnetic separation:

There are two types of magnetic separators are used. They are induced roll magnetic

separation and exolons.

9. Low intensity magnetic separator

Ilmenite being highly magnetic and is subjected to low intensity magnetic separator

10. High intensity magnetic separator

Non magnetic fraction, which is contain Rutile and Leucoxene. Rutile is subjected to high

intensity magnetic separator and Leucoxene is separated as magnetic fraction and Rutile as

non magnetic. The non conductivity fraction of electrostatic separation, which contain

Zircon, Monazite and Quartz is subjected to high intensity magnetic separation Monazite is

separated as magnetic separation factor

11. Mineral separation based on special gravity

It is mainly used to separate out heavy and light fraction of minerals. There are three types of

gravity separation

12. Spiral gravity separation

In this light fractions are thrown out aside and the heavies with high density are collected

down

13. Wet table gravity separation

It is a moving table of water that separators out the light and heavy fractions.

14. Floatex separation

This is a column type of gravity separator. The input is fed from the top and water with high

pressure and force is pumped from the other end thus the low density fractions are separated

aside and the heavier are collected down.

15. Floatation method

This uses some chemicals for this purpose such as sodium silicate and oleic acid, which is

used for the separation of Sillimanite.

Flow diagram of the process of separation of sillimanite

Rotary dryer

Dry sand separation

Conducting Non conducting

IRMS

Mag Non Mag

HIRMS

Mag Non Mag

Non MagMag

HIRMS

Gravity separation

Leucoxene Rutile

Monazite

concentrate Tails

ZirconFlotation

Sillimanite

Ilmenite

Float

HUP

Tails

FBD

4. FINANCE DEPARTMENT

The department is headed by a senior manager at unit level. He is reporting to Gm at Bombay

through Chief General Manager Chavara. Finance accounting package is in Oracle language has

been implemented at finance and Accounts division. The main function of this department is to get

all receipt and make all transactions to prepare final accounts

The department structure as follows

⌡↓↓↓||

Senior Manager

Senior Manager

5.HUMAN RESOURCE DEPARTEMENT

IREL Chavara takes place its highly motivated and trained human resource that has maximized its

performance and there by its highest business growth and profit. Morale of employees remains

facilitating smooth working of the company. Skill requirement related to different disciplines are

identified and training programs and workshops are conducted to improve overall efficiency of the

human resource.

Department structure as follows

HR department lead by General Manager and two deputy managers assisted him. The security

department and time office are working under the General Manager of HR department. Four deputy

officers and 14 clerical staffs are working under the deputy managers.

People are the most important resources of an organization.

The main functions of HRM are:

1. Administration

2. Industrial relation

3. Training and employees welfare

4. Time management

1. Administration: The administrative function of HR department include

Manpower planning

Recruitment policy

Performance appraisal

Salary and wage administration

Industrial discipline

Maintaining service book and personal files

Maintaining reservation register.

Manpower planning

Man power planning is important for any type of organization. It is the process which

determines how an organization should move from its current man power position to its desired

manpower position. For this purpose, the HR department at IRE collect feed back from all

department in order to identify their manpower requirements of various department And then the

HR department crosscheck whether there is any overstaffing in any of the departments If these

department have excess of staff, they are transferred to those departments where there is a

shortage.

The company considers the number of employee presently working as significantly high.

There is a problem that sometime the VRS can lead to scarcity to workers for particular job. At

IREL using the process of multitasking the employees are made fit to work in other function

also. By the VRS scheme more than 100 employees have been sent out with in span of three year

Man power of the company: There are 569 employs in the company. Total officers are 92 and

clerical staff 477. The numbers of contract worker are 1240.

Recruitment policy:

Recruitment in Chavara plant is done through local employment exchange for find out

prospective workers. The office staffs and managers are recruited by the head office through

tests and interviews.

Recruitment criteria:

For the recruitment of candidates, the candidates should be above18 years of age. The

following steps are taken before the recruitment of employees. They are Govt. guide line, the

recruitment only through employment exchange, notification in internet, and advertisement in

newspaper should be needed. Application will be scrutinized with the help of a selection

committee and eligible candidates are called for an interview.

Selection: The steps followed in the selection process are

Inviting and receiving application

Screening the application

Selection test-the selection test of employees are include

Aptitude test

Personality test

Achievement test

Trade test

Appointment will be based on certain criteria’s like they are medically tested after that

induction training should be given.

After training for a period of one year or more they will be put as permanent employees.

Performance appraisal:

Appraisal is the evaluation of work quality or merit. In the case of IRE performance appraisal is

a systematic evaluation of employees by superiors or others familiar with their performance.

The company following mainly two types of methods

1. Straight ranking method

Under this method men as a whole are compared from other men and ranked on the basis of

overall performance.

2. Grading method

Under this method certain categories of work such as excellent, very good, average, poor,

very poor are established and defined actual performance of each employee then compared with

the grade definitions and ranked.

To evaluating the performance of workers are present. Last grade employees that are 8th& 9th

grade, their work performance have been observed by supervisors. But in the case of executives

MBO’s are observed their performance and efficiency.

In IRE performance appraisal is done on a yearly basis to assess the performance of the

employees. The appraisal is done by three persons.

1. Reporting officer

2. Reviewing officer

3. Evaluating officer

Firstly, the employees themselves do a self appraisal and this is given to the reporting officer and the

person who has done self appraisal together identifies the key result areas and weight age is allotted

to each one of them. This is usually done at the beginning of the year.

The reporting officer checks whether the key result areas set where met by the appraisal or if there

any deviation from it. And this is to be sent to reviewing officer and then evaluating officer. Various

other factors such as the appraisal’s managerial skills like job knowledge, interpersonal skills are

also included and guided, and that is allotted in the appraisal and there promotion is based solely

seniority.

Promotion

In IREL promotion is given seniority based or based on experience. Promotion is a transfer of an

employee to a job that pay more money or that enjoys some preferred status. Sometimes the

company is considering the length of the service, education, training courses completed, previous

work history etc. Sometimes the company is also considering ability, hard work, co-operations,

honesty etc.

Conditions for getting promotion:-

1. Average leave should not exist more than 15 days

2. Any Discipline Actions Should Not Be Taken During the Service Period

3. Should not applied for job in any other organization

These are conditions for getting promotion

Industrial discipline:

Disciplinary actions are taken in the HR department. Procedure for disciplinary actions is on

receiving a complaint about a particular employee, explanation is asked. Employee will give an

explanation before 15 days. If the explanation is not satisfied he will be given a charge sheet and will

also conduct a domestic enquiry. For this purpose an enquiry officer is placed. After conducting the

enquiry the report should be sent to the disciplinary committee, and if necessary, certain punishment

may also give.

Grievances handling

There is a grievance cell in this company. Any employee can bring their grievance and complaints

here. These grievances are discussed with top authorities and effective measures are taken.

Transfer policies

Transfer is the movement of an employee from one job to another without involving any substantial

change in his duties, responsibilities. The company is following 4 methods

a) Production transfer:

When a particular department or job is faced with the pressure of work, its strength may supplement

through from other departments. Such transfers are generally made where are department is overstaff

and other is short of manpower.

b) Replacement transfer:

A replacement transfer is the transfer of a senior employee to replace with a junior employee or new

one

c) Shift transfer:

When units in shifts, employees are transferred from one shift t o another on similar job.

d) Department transfer:

Transfer from one department to another department with in the plant or with in the organization.

Industrial Relation

Most of the disputes will be settled by the company and unions. If it is not cleared, they can

approach to the government.

The trade unions active at IRE are;

1) United Trade Union Congress (UTUC).

2) Indian National Trade Union Congress (INTUC).

3) All India Trade Union Congress (AITUC).

4) Travancore Minerals Workers Unions (UTUC (B)).

5) Indian Employees Rare Earth Federation (CITU).

6) Indian Rare Earth Mazdoor (BSM).

These are the recognized unions. There are some criteria for the reorganization of a union; the union

will have 15% of employees as their members. Also some participative forum is present, they are

plants committee, Safety committee, &House building committee. These committees will have the

equal participation.

Training and development

“Training is the act of increasing the knowledge and skill of an employee for during a particular

job”. IRE adopted various techniques of training for increasing the mass productivity. The training

program is restructured regularly in IRE. The objective of training and development in IRE

Increase the efficiency

Increase the morale of people

Reduce the absenteeism

Procedures for training

1. Identify the training needs. The company identifies the training needs through 3 ways

a. Organization analysis

b. Task analysis

c. Man analysis

2. Executives themselves will discuss the training needs.

3. Charting out the training plan for a period

4. Based on feed back individual training is given.

Training methods

IRE has mainly four types of training methods. In house training, External training, Vocational

training and First aid training. The training method can be grouped on the basis of level of personnel

in the organization.

In house training: Other wise known as on the job training. In this method expert from outside,

come to the organization and give training.

External training: Also known as off the job training. The training is given out side of the

organization.

Vocational training; At least 0% of the employees should be trained every year.

Employees’ welfare:

Two types of employees’ welfare are present in IREL. They are statutory welfare and non statutory

welfare. Grativity, P.F, Pension, canteen, medical allowances are including in the statutory welfare.

Festival allowance, LTC, Recreation, Tour facilities are includes in the non statutory welfare. Also

the IREL gives some kind of allowances. They are

Shift allowance: for employees working in shifts expect general shifts will get an allowance as

follows

1 st shift (8 am to 4 pm) =10/-perday

2nd (4 pm to 12 pm) =15/-perday

3rd shift (12 pm to 8 am) =25/-per day

Hard shift allowance

Since the plant handles sand for its production, it creates a dust in the atmosphere considering this

hard ship in work every employee of Chavara plant gets 135/- per month as hard ship allowance

Uniform allowance

Every employee is provided with two pairs of uniform in every year. Rs100/-per month as washing

allowance is granted for all employees.

Transportation allowance

Every Employees (except officers) get Rs.700/- per month as conveyance allowance. Officers will

get minimum Rs.1000/- per month as car allowances

Canteen

A round the clock canteen is provided for the employees. Company will charge Rs. 4/ per day from

each employee. The canteen is under the control of the company.

Attendance bonus

To increase attendance in the company gives annual bonus of 12 days wages for every employee

who have minimum 268 day presence

Production incentives

Every employee gets an amount of Rs. 525/-per year as production incentives from the profit.

Leave facilities available in IRE

Casual leave -15/year

Sick leave - 10/year (worker)

-10 full or 20halfdays/year (officer)

Earned leave -30 days/year (It can be max of 240 days)

Surrender leave-Each employee can surrender max 90 days/year or 75% of earned leave.

Other benefits

750ml milk/day

4 pears soap/month

One turkey or towel/year

Shoes (1pair)/year

One umbrella/ year

One raincoat/2 year

House loans up to 3.5 lakhs

Medical facilities etc

Educational allowance to workers children

Festival allowance.

6.Time office

There is a full fledged time office headed by Dy. administrative officer. It follows a punch card

system. Different allowances for employees are given and it is mainly depend on attendance. It is

providing according to the report from the time office. The Time office is working under the HRM

department. The main function of this department is to maintain attendance records, leave and

service records etc. There is an e-form called Muster which relates with the attendance. The various

allowances to the employees like shift allowance, overtime allowance, attendance bonus all these

records are maintained by the time office department. Also yearly attendance bonus is given to the

employees.

Attendance of 268 days per year -12 day’s salary

Attendance of 262 days per year-10 day’s salary

Attendance of 243 days per year-7 day’s salary

The structure of time office as follows

For recording attendance punching system followed here. The attendance register usually keep in

time office. The time office collects attendance from concerned authority also. And match with the

punching system and avoid swapping. Time office has three centers for punching in convenience of

employees. In mining area and dredging plant also keep mechanical punching machine. For the

payment of salaries the time office is sending the records to the finance department. If the finance

department asks for any clarification they will do it.

7. PURCHASE DEPARTMENT

The main function of department is procurement of materials at competitive price. All items

including real materials other than raw sand are purchased by this department. Inn IRE purchase

department has a prime importance

‘

Formalities for placing an order

1. Organization of an indent

2. Tender enquiry

3. Opening the tender at the due date

4. make comparative statement

5. send it for technical evaluation

6. selection of the best one

7. if an negotiation needed it is done with party

8. Obtaining approval

9. place the order

10.Followup

Formalities of purchase

1. Float inquiry to right source

2. scrutinize the quotations

3. Obtaining the financial approval

4. Release an order

5. Flow up for times requirement

6. Receipt at the store

7. Assistance to give payment in time.

8.STORES AND DESPATCH DEPARTMENT

The stores department act as a store and supply chain, keeping inventory of the product produced on

one hand and supplying requisite raw materials to the manifold department on the other hand.

All the items in IRE are properly stored by this function area, including finished product inventory.

It stores furnace oil, machine parts, office equipments and stationary etc.

The department structure as follows.

Stores fall under two categories

Capital items

Consumable items

Capital items,

which give return for long term. Revenue items or a consumable item means that which are

consumable only for a short period.

Procurement of items of capital nature is to be made only after the approval by the competent

authority duly verified by internal auditors with prior conclusion in the capital budget

Stores action is responsible for arranging procurement of all items or purchase requisitions

shall from the basis for arranging procurement or other departments, complete in all respects and

duly approved by the controlling authority. Stores are purchased indigenously and from foreign

suppliers through the adoption of competitive tendering. Tendering system is adopted it secure the

most competitive tendering the most competitive rates and eliminate chance of favour.

The worth of production in the plant is currently between 6-7 crores. Once in every three

months inventory statistics is prepared and send to the head office in Mumbai. Stores follow Bin

card and Cardex system. This department has three major functions as follows

Receipt: The consignment items are properly verified with the receipts and requested the particular

departments to made inspection on each items

Storage: The received items are stored in proper locations and preserve them until the issue. Each

item has its own Bin card .The quantity received, material issued, total remaining are noted in the

Bin cards.

Issue: The issue made in first in first out method. After the receipt of the material internal note from

the department, the issues are made and same is recorded in the bin card

Inventory Control

Under the stores department the inventory control function is done. If excess stock is obtained, it is

properly informed to the marketing department to promote sales and if any shortage obtained it is

properly informed to production department to increase the production. Usually ABC inventory

control method is adopted in IRE Chavara for control of inventories. The principal types of

inventories are

Raw material and supply

Goods in progress that is work in progress

Finished good

For reduction of inventories four steps are taken in the stores and despatch department. They are

computerization, Codification, standardization, and value addition. All the process in stores

departments are computerized and Inventory management software is used for this purpose. Coding

is given to all inventories. For this, alpha numerical coding is used. Material coding is help to realize

what kind of inventories are stored. And location coding is help to find out where it is stored. By the

use of standardization physical verification of inventories are to be done and to be check whether the

invoice number and purchase order are equal.

Despatch section

Despatch section controls the transportation of the finished products to the out side of the company.

When a customer made a complete settlement of money for the purchasing of a particular product

from the company the marketing department placed a delivery order to the despatch department. The

despatch department then prepares an invoice and t gave a copy to the customer. This d4eepartment

also prepares gate pass and state Govt; declaration sheet.

9. QUALITY CONTROL DEPARTMENT

One of the quality control departments is to ensure quality products according to customer

requirement. They harness beach sands in environmentally responsible manner to produce minerals

and innovative value added products, which are used to make novel products required by customers.

Secondly they are responsible for maintaining consistent quality of products to the satisfaction of the

customers through quality management system implementation. They also aim at further

improvement of product, technology or process. The quality control department is also responsible

for maintaining consistency in quality of raw material during the processing, intermediate, and final

product stages. They al make use of chemical and mineralogical testing methods in each stage.

In addition to these functions this department also conducts research and development activities to

support flow sheet development works and for solutions to process related problems.

IREL Chavara got ISO 9001:2000 certifications for quality management system established for

mining, manufacturing and marketing of mineral products for the certification body of TUV

management service: Munich

10.SAFETY AND ENVIRONMENT DEPARTMENT

This department looks after the safety issues of the manpower. This team is lead by Manager (safety

and environment). He is assisted by Dy. Manager (Safety and environment) .There are staff to assist

these officers

This department provides personnel protecting equipments like safety shoes, gun boots, helmet,

goggles, mask, air muffs etc to workers from time to time. This department conducts mines safety

week during August- September month in every year. There will be competition in safety slogan,

safety song, safety speech etc. At induction level every employee gets an intense training in safety

issues. Under safety department there is a committee “accident inspection committee”, to face

unexpected accidents IRE has a safety and environmental protection committee consists of unit head

as chairman and all department /section heads as members, employees union are also participating in

the committee. This committee is meeting in every month to evaluate safety measures and forms

new policies if necessary.

Indian Rare Earth Limited, Chavara employs a state of art safety program to prevent accidents in the

plant. The safety programs are responsible for

1) Displaying safety advertisement boards which help to create safety awareness among the workers

2) The safety committee is responsible for safety. An inspection conducted on a regular basis say

daily, weekly and monthly. In addition to this a yearly inspection is conducted by internal and

external experts.

3) This department is responsible for providing safety training and retraining to regular employees.

They also provide instruction training for fresher and external expert training to all engineers

4) Safety committee also conducts monthly performance appraisal programs of their activities.

5) This department also has a special wing for accident investigation and reporting and accident

prevention program

11. MAINTENANCE AND PROJECT DEPARTMENT

MAINTENANCE DEPARTMENT

This department stands for the maintenance of machineries in plants. This department is

taking place daily inspection of the equipments; thereby they are able to understand the efficiency of

the machine by looking into the performance of the machines. Sometimes the maintenance will go

for 7days to 15 days.

TYPES OF MAINTENANCE:-

The maintenance department gives different types of maintenance to the machineries like;

1) Electrical maintenance.

2) Mechanical maintenance.

3) Machine maintenance.

4) Preventive maintenance.

5) Break down maintenance.

6) Routine maintenance.

7) Block maintenance.

12.SECURITY DEPARTMENT

Security of company assets and premises laid on the staff of security department It is lead by

security manager and he is assisted by 6 head security officers and 26 security guard

The security department gives security of company and also maintains the entry of employees and

visitors. According to ISO procedure they maintain the discipline of employees like uniform visitors

pass etc

Major threats

Two major threats they are present in IRE they are

1) Sabotage

2) Theft .

Sabotage

If sabotage happens there will be a control room and it accessible at every time. In case of

emergency the system will automatically shut down and emergency alarm is there. And all the

employees are required to assemble in assembly points.

Theft

The boundary walls of the company were not clear. And also the neighboring people are jobless

people because they have a tendency to theft.

Department structure as follows

There are 32 securities in total. The security department gives security in mining area also.7

securities are in Puthenthura, 7 securities in Vellanathuruthu and 16 in plants.

13.MEDICAL DEPARTMENT

IREL has a full fledged dispensary in the company. It comprises of two doctors, three pharmacist

and three nurses. Structure of the department as follows

Every family member of the employee is eligible for free attendance and treatment in the dispensary.

Cases beyond the scope the dispensary will refer to major hospitals in kollam and karunagapally

(referred hospitals). The whole payment is such cases are done by the company itself. Dispensary is

working around the clock.

14.CIVIL DEPARTMENT

Civil department consists of Dy. Manager (civil), two Dy. Officer and the work force. They

frequently monitor company structures and maintain them properly. In case of new projects, the

basic infrastructure has to be erected by this department.

General Manager (Resource)

Dy. General Manager Resources)

Supervisors

FINDINGS AND ANALYSIS

SWOT ANALYSIS

Strength

1. Highly skilled manpower

2. Efficient management

3. Modernized plant having foreign and Indian technology

4. Cordial relation ship between management and unions

5. The setting up of IREL has resulted as in a considerable upliftment of the social and

economic conditions of the people living in surrounding areas.

6. In keeping with the environmental concerns Indian Rare Earth as adopted eco-friendly the

measures with in the surrounding.

Weakness

1. Situated in Kerala where labour charges are high and also political influence are regarding

labour issues.

2. Only a small part of total plant capacity is utilized

3. Due to monopoly of market sales promotional activities are very less

4. Poor distribution system

5. Company is a central government undertaking and as a result all major and minor decisions

have to be taken undergoing a lot of formalities and take more time.

Threats

1. Possible changes in government policy

2. Increasing trend of transportation cost

3. Change in social and political scene to increase the price of raw material.

CONCLUSION

IREL is one among well performing companies in Manavalakurichi engaged in the process

of processing rare earths products available among the coastal belts. IRE is reaching new boundaries

with its performance. IRE was incorporated on 18th August 1950 as a Pvt. ltd company under the

Indian company’s act of 1913 jointly owned by the govt: of India and the govt: of Travancore

Cochin. In 1951, IREL became a public sector undertaking and two mineral separation plants, one at

Manavalakurichi in Tamil Nadu (1967) and the other at Chavara in Kerala state (1970) were set up.

The organization study at IRE was an unforgettable experience. The organizational

atmosphere prevailing at IRE is not that of a timid public sector unit. The concern for the

environment and social responsibility are worth studying. The study helped in having a practical

exposure to real practice in organization. The study provides insight into the functioning and

coordination of departments in an effective organization.

BIBLIOGRAPHY:-

BOOKS

IRE Brochure.

Departmental procedure manual (DPM) of IREL.

IRE Annual report.

U.S. GEOLOGICAL SURVEY MINERALS YEARBOOK—2001

Kothari C. R. Research Methodology Methods and Techniques 2ND Edition New Age

International Publishers 2008

Chhabra T. N Human Resource Management – Concept and issues Fifth edition Dhanpant

Rai & Co(P) Ltd. 2008

Kotler Philip Marketing Management- A South Asian Perspective 12th Edition Pearson

Education 2007

Chase B Richard, Aquilano J Nicholas, Jacobs Robert F, Agarwal K Nithin Operation

Management For Competitive Advantage 11th Edition The McGraw- Hill Publishing

Company Ltd. 2006

WEBSITES

www.irel.gov.in

www.wikipedia.org