3 my os report 2012 anu
TRANSCRIPT
Krupanidhi Degree College, Bangalore 1
Table of Contents
EXECUTIVE SUMMARY ................................................................................................................ 3
1. INTRODUCTION ...................................................................................................................... 4
1.1 OBJECTIVES OF THE STUDY ............................................................................................ 5
1.2 SCOPE OF THE STUDY ....................................................................................................... 5
1.3 IMPORTANCE OF THE STUDY ......................................................................................... 6
1.4 ACHIEVEMENTS OF STUDY ............................................................................................. 6
1.5 LIMITATIONS ....................................................................................................................... 6
1.6 RESEARCH METHODOLOGY ............................................................................................ 7
2. INDUSTRY PROFILE ............................................................................................................... 8
2.1 STRENGTHS OF INDIAN TEXTILE INDUSTRY .................................................................. 11
2.2 WEAKNESSES OF INDIAN TEXTILE INDUSTRY .............................................................. 11
2.3 STATE SCENARIO ................................................................................................................... 12
3. COMPANY PROFILE ............................................................................................................. 13
3.1 HISTORY AND PHILOSOPHY ................................................................................................ 14
3.2 ANNA GROUP PROFILE ......................................................................................................... 15
3.3 PRODUCT PROFILE ................................................................................................................. 22
SCOOBEEDAY ................................................................................................................................ 23
TRAWELL DAY BAGS .................................................................................................................. 24
KITEX LUNGIES ............................................................................................................................ 25
KITEX BED SHEETS ...................................................................................................................... 26
MULL ............................................................................................................................................... 27
KITEX DHOTHIES .......................................................................................................................... 27
DAGO BERT .................................................................................................................................... 28
ADONIS & AGNA (INNER WEAR) .............................................................................................. 28
4. VISION AND MISSION .......................................................................................................... 29
4.1 FUTURE VISION OF KITEX LIMITED .................................................................................. 29
4.2 MISSION OF KITEX LTD ........................................................................................................ 30
5. COMPETITORS ....................................................................................................................... 31
6. ORGANIZATIONAL HIERARCHY ....................................................................................... 32
Krupanidhi Degree College, Bangalore 2
7.1 MARKETING DEPARTMENT ................................................................................................. 34
7.2 FINANCE DEPARTMENT ....................................................................................................... 42
7.3 HUMAN RESOURCE DEPARTMENT .................................................................................... 46
7.4 PRODUCTION DEPARTMENT ............................................................................................... 54
7.5 PURCHASE DEPARTMENT .................................................................................................... 63
7.6 QUALITY CONTROL DEPEARTMENT ................................................................................. 67
7.7 STORE DEPARTMENT ............................................................................................................ 70
8. SWOT ANALYSIS .................................................................................................................. 75
8.1 STRENGTHS ............................................................................................................................. 75
8.2 WEAKNESS ............................................................................................................................... 75
8.3 OPPORTUNITIES ................................................................................................................ 76
8.4 THREATS................................................................................................................................... 76
9. PORTERS FIVE FORCES MODEL THEORY ....................................................................... 77
9.1 THREAT FROM NEW ENTRANTS ......................................................................................... 77
9.2 AVAILABILITY OF SUBSTITUTES ....................................................................................... 77
9.3 BARGAINING POWER OF BUYER ........................................................................................ 78
9.4 BARGAINING POWER OF SUPPLIERS ........................................................................... 78
9.5 COMPETITIVE RIVALARY .............................................................................................. 78
10 MCKINSEY‟S 7S FRAME WORK ..................................................................................... 79
10.1 STRATEGY .............................................................................................................................. 79
10.2 STRUCTURE ........................................................................................................................... 79
10.3 SKILLS ..................................................................................................................................... 80
10.4 SYSTEMS................................................................................................................................. 80
10.5 SHARED VALUES .................................................................................................................. 80
10.6 STYLE ...................................................................................................................................... 80
10.7 STAFFS .................................................................................................................................... 80
11. FINDINGS .................................................................................................................................. 81
12. SUGGESTIONS ................................................................................................................... 82
13. CONCLUSION ..................................................................................................................... 83
14. BIBLIOGRAPHY ................................................................................................................. 84
15. APPENDIX ........................................................................................................................... 85
15.1 ABBREVIATIONS .................................................................................................................. 85
Krupanidhi Degree College, Bangalore 3
EXECUTIVE SUMMARY
The Internship report entitled “ORGANIZATION STUDY” was conducted in KITEX LTD
at Kizhakkambalam, Kerala. KITEX.LTD is one of the leading textile manufacturing
companies in Kerala. The aim of the study is to understand the working of the organization in
general. This study gave me an opportunity to understand various functions and process of
various departments.
The study is mainly based on the details collected from each department. Each and every
activities of the company is studied carefully with the data available. The study is descriptive
type undertaken by personally visiting the firm. The methods used for collecting data‟s are
primary and secondary. Consultation with the manager of various departments has helped me
to fetch primary data‟s.
The main objective is to make an overall study of the company and the various function of
different departments, and to get an idea about strengths and weakness of the company with
regards to its performance in the industry, in this study Porter‟s Five Force model and
McKinsey 7s model used for analyzing the organization.
As a part of two year MBA program at the beginning of 3rd
semester, I had to carry on a
project in an organization in order to understand the organization and their function. This was
a great opportunity to get the first hand information and understand the functioning of the
various departments. As learning experience I have summarized my findings and made few
suggestions, which would be beneficial to Kitex Ltd in the course of long run.
Krupanidhi Degree College, Bangalore 4
1. INTRODUCTION
Organizations play major role all over the world. Different organizations meet people needs
and provide them with product, service or both. Due to globalization the world has become a
global village. This has very much helped people to get their needs. Different firms play
different role and has its own importance for my study. I have chosen KITEX LIMITED it is
a well reputed company in Kerala.
The organization study is carried out at KITEX LTD Kizhakkambalam, Aluva. The
organization study has been carried out to get an understanding of the structure and
functioning of the organization. The study was undertaken to get an exposure to the
functioning of different department of the company. The study helps to interact with the
managers of different department and to observe the workers at their work place and to act
together with them. The purpose of the study is to get a clear –cut idea about the functioning
of different departments of the company.
The study is confined to 45 days based on the primary data obtained from the head of various
departments, the middle level managers and supervisory staff. The study covers in brief in the
present position of the textile industry and the company. The study is made by personally
visiting the company at Kizhakkambalam.
The primary data have been collected by structured interview with the managers and other
personnel of the company. The information about manufacturing process has been gathered
by interacting with different personnel of the organization at various levels.
Krupanidhi Degree College, Bangalore 5
1.1 OBJECTIVES OF THE STUDY
Primary Objectives
To get touch with the industrial and organizational environment.
To understand the actual working conditions in the organization.
Secondary Objectives
To know the organizational structure.
To find out various departments in the organization.
To get familiar with the policies and procedures of the organization.
To know SWOT Analysis of the company.
1.2 SCOPE OF THE STUDY
The organizational study program in Kitex Ltd., Kizhakkambalam in Aluva helped to
understand the organizational structure, its functions.
The study is useful in assessing the quality and the performance of the company.
It also helps us to identify the strength and the performance of the company.
It also helps us to find out the area where the organization should improve.
It has helped to get familiar with the textile industry and also ascertain the present
position of the company.
Krupanidhi Degree College, Bangalore 6
1.3 IMPORTANCE OF THE STUDY
The study is mainly on academic ground. This study provides opportunities to acquire
practical knowledge through personal study and observation. This study reveals some
positive and negative aspects of the enterprise. The feedback of students will provide the
company authorities to frame their policies and frame effective program.
1.4 ACHIEVEMENTS OF STUDY
The training in Kitex helped me to acquire practical knowledge through personal study and
observation. The description given by the authorities is in many ways related to actual
situation. By observing various aspects of the company I came to know the following.
The type of business performed by the company and its structure.
Various functions and operation of the company.
Production process performed.
How factory is working in this competitive scenario.
1.5 LIMITATIONS
Time limit
Restricted collection of detailed information
The study could be conducted only on the day working hours and so the working
conditions of the employees during the evening and night shift could not be
understood.
Krupanidhi Degree College, Bangalore 7
1.6 RESEARCH METHODOLOGY
Research is a scientific and systematic search for pertinent information on a specific
investigation.
Descriptive research includes surveys and fact finding enquiries of different kinds. The
major purpose of descriptive research is description of the state of affairs as it exists at
present.
SOURCES OF DATA
Primary sources of data
Personal interview with managers of concerned department‟s detailed interview with
department head and other lower level workers in the company are the primary sources.
Secondary Sources
Official records
Annual reports
Organizational manuals
Departmental manuals
The study is done by personally visiting the company at Kizhakkambalam, Aluva. The
primary data has been collected by structured interview with general manager, and managers
of various departments other personnel including supervisors, workers etc. of the company.
The information about manufacturing process has been collected by observing functioning
of machines and equipments in the plant. The quality manual, publication of government of
India, ministry of textile, magazines, and internet was a useful source of the secondary data.
Krupanidhi Degree College, Bangalore 8
2. INDUSTRY PROFILE
The Indian textile industry, which has a tradition over 5000 years, is one of the verges of
crating history. If the industrialization by its colonial masters reduced the status of Indian
textiles as glorified converters, the rule based trading symbolized by the world trading
organization is expected to propel Indian textile as global clothier, secondly in China. The
journey from being colonial masters converted to become a nerve center for outsourcing
essentially captures the survival instincts of Indian textiles. Not a day passes without Indian
textile being featured in international forums and global magazines. Entrepreneurs and
corporate houses that have made necessary adjustments to meet global challenges could reap
windfall gains, while the other could marginalized. Nevertheless, it should be admitted that
adoption of world class technologies, economies of scale and global manufacturing practices
are very vital.
India‟s textiles industry is crucial to national economy. Besides, it plays an important role in
countries macroeconomic level. It contributes about 3 percent to the Gross Domestic Product
(GDP) of our nation, accounts for 14 percent of industrial production, and generates 8 percent
of the central excise revenue and contributes around 24 percent of total exports. The industry
is second largest employment provider after the agriculture sector employing over 38 million
people directly and another 50 million people indirectly.
The structure of Indian textile industry is bit complex. On one hand it is marked by the
presence of large scale organized players while on the other hand are the numerous small
scale units. The growth of small scale industries was backed by middleman in the textile
fabric trade .Traditionally the, textiles have had a long chain of intermediaries like
wholesalers, distributors, agent etc. These intermediaries were making arms of mills and
played an important role in maintaining contact with the final customer that is the retailer.
The intermediaries in order to sustain business resorted to buying from independent units.
The textile industry is characterized by the combination of cotton farm and ginning sector,
synthetic and manmade fiber industry, spinning sector, weaving sector, and composite mils.
Krupanidhi Degree College, Bangalore 9
The presence of a large number of players in each sector, none of which is large enough to
stimulate demand, has led to a situation where in the industry as a whole cannot compete
effectively or counter-attack of the completing rivals of the industry.
In the early period we can see that that the U.S and European economies restricted imports of
textile products from different countries through Multi –Fiber Agreement (MFA). India under
MFA received a quota of 2 percent and 3 percent in the U.S and European Union markets.
However in 1995, a new agreement on Textile and Clothing (ATC) was signed and this was
aimed at phasing out the MFA, this in effect ended the quota regime. This is of benefit to
developing nations like India, which has a big textile industry setup. The Indian textile
industry has a peculiarity that is not only the industry grows its own raw materials like silk,
cotton, jute, wool but also processes the same into high value products like fabric and
garments.
Our main competitors in the textile sector include China, Bangladesh, Sri Lanka, Indonesia,
and Pakistan. Like India, these countries too are cost effective producers due to advantage of
law labor costs. But we have advantage over them, say if we compare labor cost of china they
may have an upper hand but still we can see that biggest advantage we have is the capital
cost. One big advantage we have over the whole of Asia would be from outsourcing.
The Indian textile industry has a long way to go to achieve a sustaining competitive
advantage. The industry is very much fragmented and poor access to finance and technology
has been affecting the growth prospects of smaller manufacturers. We face problems due to
new market dynamics, high power cost, and lack of basic infrastructure facilities. We can see
that even though the Indian textile goods are known internationally through generic names
like Mysore Silk, Kancheepuram Silk, Bengal Cotton and Kashmiri Shawl, the irony is that
none of these has been promoted aggressively in the international market. We also suffer
from over capacity, outdated technology, labor problems and debt levels that strained profits.
There are heated debates on China‟s competitive edge over the Indian industry and it took a
center- stage and, with China often being pronounced as the biggest gainer after the removal
of restrictions or quotas on textile clothing. While India has an advantage of a low cost raw
material base and abundant cheap labor, it is competitive than China. Over the past few years,
companies to set up captive power plant to ensure regular supply and control cost. Replacing
high cost fuel with cheaper alternatives, such as LNG for Naphtha, was another to cut costs.
Krupanidhi Degree College, Bangalore 10
The removal of reservation of for small scale unit in the garment sector has also stimulated
the investment in the sector. Fabric makers have setup garments manufacturing units to cater
the need of export market. The fragmented nature of the industry has made its supply chain
unreliable. It takes Indian between 40 and 60 days to ship goods to U.S, while it takes China
around 15 days, because of the letters superior infrastructure.
The year 2004 saw the Indian textile industry waking up from its prolonged hibernation. The
industry witnessed intense preparation for the post quota regime on the part of players who
believed that India would be the next best alternative sources of apparel. A number of
companies took to upgrading their out dated technologies. The Indian textile industry is
racing against time and there is a feeling that if critical gaps are addressed in a time bound
manner, the industries can double its presence in the global market by 2011. In short, textile
industry is not afraid of facing external challenges or competition, if a level playing field is
provided and all basic issues confronting it are addressed. The challenges are totally from
within and centered on the frame work of government policies as the industry has done its
best by benchmarking itself with the global market leaders.
(www.cci.in, 2012)
Krupanidhi Degree College, Bangalore 11
2.1 STRENGTHS OF INDIAN TEXTILE INDUSTRY
India has rich resources of raw materials of the textile industry. It is one of the
largest producers of cotton in the world and is also rich resources of fiber like
polyester, silk, viscose etc.
India is rich in highly trained man power. The country has a huge advantage due to
lower wage rates, because of low labor rate the manufacturing cost of textile
automatically come down to very reasonable rate.
India is highly competitive in spinning sector has presence in almost in all process
of the value chain.
Indian garment industry is very diverse in size manufacturing facility type of apparel
produced, quality of output, requirement of fabricated
2.2 WEAKNESSES OF INDIAN TEXTILE INDUSTRY
Indian textile industry is highly fragmented in industry structure, and is fed by
small scale companies.
The reservation of production for very small companies that was imposed with the
intention to help out small scale companies across the country of the industry.
Indian labor loss is relatively on unfavorable to the traders and there is an urgent
need of labor reforms in India.
India seriously lacks in trade pact membership, which leads to restricted access to
the other major market
(www.cci.in, 2012)
Krupanidhi Degree College, Bangalore 12
2.3 STATE SCENARIO
The southern states have a rich legacy of traditional textiles. They are the irrefutable textile
Maharajas of the country; churning out enviably stunning silks and cotton that are lapped up
by people all across the continent .the textile industry generates huge revenues for Kerala.
Thrissur is famous for the textile industry. Thrissur is also famous for its hosiery mils.
Lakshmi Mills of pullazhi, Rajagopal textiles of Athani, Alagappa Textiles of Alagappanagar
are famous for their textile industry. Besides weaving saris, Kerala also produces premium
quality lace and embroidered goods. It is usually done by women artisans. Caps are produced
in bulk at Kasargod which is then exported to Gulf and African countries.
Kannur, around 350 Km north of Kochi, is Kerala‟s leading textile export hub. Its export of
textile products is worth around Rs 3 billion a year, according to industry sources. As the US
Dollar weakness against the rupee, the going is getting tough for textile exporters here. The
dollar, which fell around 15 percent from March this year, has burned a Rs 450-million
($11.4 million) hole in the pockets of exporters .Kannur has around 40 textile export units.
The sector employees are around 50,000 people in the district.
The major competitors were MCR, ANGEL, JANSON, RAMRAJ etc.
Krupanidhi Degree College, Bangalore 13
3. COMPANY PROFILE
Anna Group‟s weaving unit, Kitex Limited was established in 1975.the company is engaged
in the production of fabrics made of cotton and other blends, grey cloth, bed sheets and
lungies. Through the years, the company has carved a niche for itself in this highly
competitive industry with its tradition of world-class quality.
Kitex is engaged in production of fabric made of cotton and other blend, grey cloth, bed
sheets and lungies are available in four various types-executives, medium super, medium and
economy all are priced differently. Kitex whit gives you an array of white dhothies single as
well as double. It becomes with streaks of colors and gold to add to the looks your dhothies.
We have carved a niche for itself in this highly competitive industry with its tradition of
world-class quality.
The company has a well-organized production department and is committed to 100 percent
percentage quality in all the production process. In the production department Kitex has 480
power looms and 20 automated looms. There are almost 650 workers in the plant. They use
both automated and power looms in the production process. The annual sales range is
between US$10 million-US-$50 million. Kitex follows a line organizational structure and
their span of management is narrow due to this they have the advantage like reinforcing
authority relationship by emphasis of status given, preventing cross communication etc. Kitex
products are marketed through 1500 authorized dealers. Kitex fabrics are now exported to
many part of the world. Kitex is going for a major expansion plan to augment the production
capacity. At the dawn of new millennium Kitex entered in to the luggage and baggage under
the brand name of ScooBee Day.
( (http://annagroup.net/the-group.php, 2012)
Krupanidhi Degree College, Bangalore 14
3.1 HISTORY AND PHILOSOPHY
More than three decades age in1968, when Mr. M.C .Jacob founded the Anna Aluminum
Company. He made a break with the past. Belonging to an affluent family of plantation
owners, he ventured in to the risky world of manufacturing industry and hoped for the best,
while working very hard to make his maiden venture to a great success.
Today the group is involved in manufacturing of aluminum sheets, circles, vessels and
utensils, spices and fabric, school bags, garments and marine exports etc. The Anna ranges
vessels and utensils are highly popular in domestic market and in the Middle East, U.S.A,
Africa and Australia. The group of turnover is around 200 crores.
Anna Group, a Multi crore success stories began in 1968 is now spread heading the thrust in
the new millennium. From a company devoted to the manufacturing of aluminum vessels and
utensils, it involves spices and fabric, school bags, garments, and marine exports. It has
emerged as a multi dimensional giant with interest in various fields ranging from textiles to
spices to baggage. Anna Group, where quality is the buzzword has opened new vistas of
exciting challenges. Today Anna ranges of products are very popular in domestic market and
overseas.
( (http://annagroup.net/the-group.php, 2012))
Krupanidhi Degree College, Bangalore 15
3.2 ANNA GROUP PROFILE
ANNA GROUP OF COMPANIES
More than three decades ago, in1968, Mr. M.C. Jacob founded the company, he made a break
with past. Belonging to an affluent family of plantation owners, he ventured in to the risky
world of manufacturing industry and hoped for the best, while working very hard to make his
maiden venture a success. Today group is involved in the manufacturing aluminum sheets,
vessels, fabrics, garments, marine exports, medicine etc. The Anna range of vessels is highly
popular in the domestic market and the Middle East, U.S.A, Africa, Australia.
ANNA ALUMINIUM
It is the flagship company of Anna Group. Engaged in the manufacturing and marketing of
vessels and utensils as per ISI standards for the past three decades, it is presently the only
company having ISI Certification for vessels in Kerala. The company manufactures vessels
only using 99.5% pure aluminum ingots. The brand “ANNA” has become a household name
in Kerala due to its high standards of quality and workmanship. The company has more than
525 different varieties of vessels and utensils, marketed through more than 2500 dealer
outlets.
Anna Aluminum has a wide range of vessels to cater to all necessities of a modern day
kitchen. Depending on the various types of cooking and dishes, Anna provides more than 525
varied vessels and utensils. All products are made up of high standards and strict adherence to
quality. To maintain this quality, vessels and utensils are made by using 99.5% pure
aluminum. Anna group is the only company ISI Certification for all its products in Kerala.
The group‟s packaged cookware items were brought under a new brand name- Chakson.
CHAKSON
Chakson brand pressures cookers stormed into the market in 1993; and within
a short span of 4 years Chakson pressure cookers captured a sizeable share of the domestic
market.
Krupanidhi Degree College, Bangalore 16
Products: Thermal Cookers, Pressure Cookers, Multi Steamer, Non Stick Cookware.
KITEX LTD
Anna Group‟s of textile unit, KITEX LIMITED was established in 1975. The company is
engaged in the production of fabric made cotton and other blend; Grey cloths, Bed sheets,
lungies, Scoobee Day, Travel Day etc.
Products: Bed sheets, lungies, Scoobee Day, Travel Day.
The Kitex range of garments, fabrics and textiles include dress materials and traditional wear
like Lungies, Dhothies. The Kitex range of garments manufactured in the multi-crore factory
is a popular brand that is recognized not just within India, but Abroad too, catering to the
fashion conscious markets across the world. Made from 100% combed cotton, Kitex Bed
Sheets are suitable for all climates and come in variety of shades and designs. Experience the
warmth of smoothing nights that caresses your dream and lull yourself into relaxing sleep,
night after night with Kitex.
SCOOBEE DAY
From the house of Kitex has a wide range of school bags which became an instant hit and
Scoobee become a close companion to all school kids? With shoulder strap cushions and rear
padding for added comfort, Scoobee Day comes in various color combinations. The unique
features include special pouch for water bottles, Tiffin boxes and even a secret pocket.
TRAWELLDAY BAGS
These are wide range of luggage and baggage products. Coming up with latest designs and
models, these travel and everyday travel luggage needs are designed to meet the modern
trends and requirements of customers. Made from the imported materials, the bags are
available in attractive styles and different color combinations
Products: Travel Bags.
Krupanidhi Degree College, Bangalore 17
ELLYS
Ayurveda is a traditional Indian system of medicine, recognized even by the world Health
Organization. ELLYS HERBAL EXTRACTONS makes use of the ancient secrets of
Ayurveda, to provide you with every day food supplements that can enhance your health.
Products: Ellys Gastro Herbal Digest.
DAGOBERT
Shirting and suiting are woven from the finest cotton, using the toughest materials that are
soft to touch when draped on your body. Dago Bert shirting and suiting‟s are available in
variety of colors and shades.
Products: Shirting and Suiting
ADONIS
ADONIS is the brand name of innerwear for men. Adorn is a range of refined vests and
briefs. Its 100% combed compact cotton keeps skin free of itches, black spots, prickly heat,
boils etc.
AGNA
AGNA a range of Bras and Panties ensure seamless fit and finish. The smooth elastic used
makes the skin feel fabulous and the label free stitch ensures flawless comfort.
SARASPICES
Sara spices are the condiment producing unit of the Anna Group. It is involved in the
production and exporting of curry powder, whole spices, etc. For the past two decades Sara
Spices and curry powders are known for its high standards of quality and hygiene and have
won accolades at home as well as abroad.
Products: Ready to Eat, Ready to Cook, Curry Powder.
(www.annagroup.net, 2012)
Krupanidhi Degree College, Bangalore 18
KITEX LIMITED
Anna Group‟s Textile unit KITEX LIMITED was established in 1975 at Kizhakkambalam,
Aluva in Ernakulum district. This prestigious company one of the vibrant division of Anna-
Kitex group of companies is a celebrity among industrial giant in our country. Their products
have high demand and they were trying to create and maintain their customers in this
competitive world with their high quality. The shares of the company are held by the
proprietors themselves. Kitex has strength of well experienced managers who guide the
organization toward excellence. Kitex has ISO 9001-2008 certification .Kitex Limited has
seven departments and they follow military type of organization structure. Through the years,
the company has carved a niche for itself in this highly competitive industry with its tradition
of world class quality of its products. The Kitex range of garments manufactured in the multi-
crore factories is that popular brand that is recognized not just within India, but Abroad too.
Catering to the fashion conscious markets across the world made from 100% cotton. Kitex
bed sheets are suitable for all climates and come in a variety of shades and designs.
Kitex Limited is union free company. The plant has the capacity to produce cotton fabric,
polyester blends, grey cloth, bed sheets, lungies, dhothies, fabrics school and college bags,
travel bags, inner wears, shirting and suiting, kids wear etc. The plant functions around the
clock in three shifts and it‟s have a capacity to produce 35,000 square meters per day. The
products are marketed through the network of over 2000 dealers.
The company was established to set up an efficient estate that provide technical, industrial,
financial and marketing facilities to power loom owners and to crate job opportunities . To
crate unemployed considerable infrastructure facilities have been built up by way building,
electrical distribution systems, supporting machineries for warping, sizing etc, to help power
loom owners. About 400 power loom were established in the premises under the banner of
Kizhakkambalam Textile Limited ( which has been renamed as Kitex Limited).The group got
higher regard for the welfare of the employees and public several charitable programs are
organized for the lower strata of the society. The group is also providing a very good
accommodation and canteen facilities to employee who hails from all over India. A market
Krupanidhi Degree College, Bangalore 19
survey done in 2007 consumers able products named TOP 20 PRODUCTS in Kerala, Kitex
got 11th
rank with a score of 201.8736. The rank decided on the basis of consumer‟s
acceptance or popularity.
QUALITY POLICY
We are committed to manufacture and deliver quality fabric, Bags and readymade garments
as per the costumes specification and requirements, efficiently in professional and
environment friendly on the time and at most customer satisfaction while during to become a
world class organization through continual improvement.
POLICIES OF KITEX LTD
Consumer satisfaction.
Social obligation.
Quality and standards products for domestic customers.
Profit maximization and consistency in profitable levels.
Optimum utilization of men, material and machine.
Employee‟s growth and satisfied work force.
Consistent and diversified growth.
Optimum inventory control.
Production through environmental friendly and safer methods.
Effective management practice and cost control system.
QUALIFICATION OF EMPLOYEES
Top Level : Professional qualified having sufficient industry experience.
Middle Level : Graduation and above with experience in relevant data(Both
management and technical)
Junior Level : Diploma/ industrial training certification in textile industry
experience.
Krupanidhi Degree College, Bangalore 20
ORGANIZATIONAL CONTRIBUTION TO SOCIETY
CORPORATE SOCIAL RESPONSIBILITY
As part of the organizations contribution towards the society, the KITEX LTD provides:
The company provides employment opportunity to about 2000 people.
It also provides good working environment to the workers and also ensures their
safety and interest.
The good produced are eco friendly and do not cause any harmful hazards to the
environment.
An ambulance service is provided to all BPL families of Kizhakkambalam panchayat.
The company provides free school bags to the anganavady students of
Kizhakkambalam panchayat.
( (http://annagroup.net/the-group.php, 2012)
Krupanidhi Degree College, Bangalore 21
VITAL STATISTICS
Name KITEX LIMITED
Address Kizhakkambalam, Aluva, Ernakulum.
Registered Office Kizhakkambalam
Nature of incorporation Private Limited company.
Nature of business Manufacturing cotton.
Brand name of product Kitex
Total build up area 1650000 sq. ft.
500 modern loom (CIMMCO/SULZER/RARER)
20 million squire meter of cotton and cotton blends.
Production capacity 3500 sq. meters day.
Employment potential 2000
Founder Mr. M.C .Jacob.
Chair man Mr. Bobby Jacob and Mrs. Mini Bobby.
Total capital employed 2 crores.
Annual turnover 100 crore
Bankers Federal Bank, ICICI, Canara Bank.
Managing Director Sabu Jacob
Auditor Varma & Varma, Ernakulum
(Kitex Ltd, 2012)
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3.3 PRODUCT PROFILE
Kitex is engaged in the production of all verities of grey fabric made of 100% cotton. The
products manufactured by the company are industrial goods and consumer durable goods.
85 % of the goods (Grieg Cloth) are sold as such other companies per production units in the
textiles and garments. 15% of the cloth manufactured by the company is converted to lungies,
dhothies, mulls and bed sheets. Various units in Tamilnadu do this conversion. This
conversion process includes resizing, mercerized, bleaching, printing, dyeing etc. The
products sent for processing will take one and half month for completing the cloth and then
repacked to make it ready for dispatch.
KITEX BAG DIVISION
At the dawn of new millennium, Kitex entered in to the baggage and luggage industry under
the brand name “SCOOBEE DAY” and “TRAWELL DAY” respectively. Kitex have a wide
variety of travel bags, trolley bags, business bags, laptop bags and back bags under the name
of Travel day. The factory is engaged in continuous production of bags and quality of 14
lakhs of bags came out last year. The fabrics for the bags are mainly imported from China,
Taiwan etc. Sample for the design may be brought from outside the country to produce the
best quality design that can be matched with other international brands. New designs for the
bags are sketching using computers by various experts in the department. The production is
carried out on continuous basis. After the final stitching of the bags, each unit is taken
separately for a strict quality check. Besides that random checking is also made by quality
control system. Imported and domestic machineries are used in the factory which can
function continuously without any break. Computer programmed machines are also used in
the plant which can perform multiple task. The factory runs on one shift from 8:30 am – 6:00
pm. At the time of season the work starts from 8:00 am and is continuous up to 9:00 pm. In
such cases overtime allowance is given to the workers. There is no stiff competition for
scoobee day bags in the field of school bags. The bags are supplied in Kerala and Tamilnadu
and a share is expected to Middle East. The company is expecting a sale of 15 lakh units of
bags in the current financial year and they are also very keen to introduce newer models of
their brand to the ultimate customers.
Krupanidhi Degree College, Bangalore 23
SCOOBEEDAY
At the dawn of new millennium the new generation was presented with an innovative school
bag from Kitex, the main offshoot of Anna Group. Scoobee day bags are compactly designed
with unique features anti strain shoulder padding‟s and acupressure bud specially designed to
minimize the strain on the back and shoulders. Scoobee day, from the house of Kitex has a
wide range of school bags which became an instant hit, and Scoobee became a close
companion to all school going kids. With shoulder strap cushion and rear padding for added
comfort, Scoobee Day bags come in various color combination. Using ribs top fabric and leak
proof materials. Scoobee day are attractively priced. The unique features include special
pouch for water bottles, Tiffin boxes and even a secret pocket.
Features of Scoobee Day bags
Made from imported Dinner Nylon for durability.
Shoulder strap cushion to prevent shoulder pain.
15 different color combinations.
Soft padding and acupressure buds on the rear side to cushion your back.
Unique stitching using strong nylon threads.
Quality zip with zip guard to prevent water leaking into the bag.
Secret pocket to hold chocolate and money.
Special leak proof Tiffin box price at attractive price.
Bags for college and travel purpose also available.
Scoobee Day: My friend
One of the reason to this brand is hit among children is the brand phonetic resemblance to the
popular comic character Scoobee Doo. All the credit behind the success of the product goes
to advertising division of Scoobee Day bags. Scoobee Day adopted the strategy of hooking
the kids. The brand name itself was a hit and there was something more. The brand told a
story; the hero of the story was a mascot- a bee named Scoobee. Scoobee Day is positioned as
the best friend of kids. The brand all through it‟s a story has told the stories how Scoobee
helps the kids in distress, fighting those monsters those who tried to attack kids. The brand
also has the tagline “Scoobee Day en Changathi” (in Malayalam translated to Scoobee Day
my friend). The brand told consistent stories which involved kids being chased by dragons
Krupanidhi Degree College, Bangalore 24
and monsters and how Scoobee rescues the kids and tame the demons. The advertisement
containing the tagline and catchy stories of Scoobee helping the kids, made a very strong
impression in the mind of the kids.
PRODUCTS IN SCOOBEE DAY
o Romeo
o Gypsy –large and medium
o Pride
o Challenge- large and medium
o Promise – large ,medium and small
o Liberty - large, medium, and small
o Styleo - large, medium, and small
o Twinkle
o Delight – large, medium and small
o Hip top – large, medium, and small
o Hero plus- large, medium and small
o Nova plus
o Spark – large, medium and small
TRAWELL DAY BAGS
The Renowned Anna- Kitex Group manufactures of quality consumer products forayed into
the travel bag segment with its- Travel Day bags- wide range of luggage and baggage
products. Coming up with latest designs and models, these travel and everyday travel luggage
needs are designed to meet the modern trends and requirements of the customers. Made from
the imported materials, the bags are available in attractive styles and different color
combinations.
Krupanidhi Degree College, Bangalore 25
Travel Day Offers
Travel bags.
Trolley bags.
Business bags.
Lap- top bags.
Back- packs bags.
Beauty case bags.
KITEX LUNGIES
EXECUTIVE:-Superior qualities lungies available in various design and colors.
MEDIUM SUPER:-Comfortable lingoes you would love to drape. Available in
various design and Color combinations
MEDIUM:-Experience freedom and coolness with medium range of lungies, come to
you in warn color and in various designs
ECONOMY:-After a hard day‟s work, jump into lungies to ease your tension, to
smooth your senses and to feel relaxed.
Name Length Price
Executive 130cm x 200 cm 175 Rs
Medium 127cm x 200 cm 138 Rs
Medium super 127cm x 200 cm 150 Rs
Standard 127cm x 192 cm 105 Rs
Supreme 127cm x 200 cm 150 Rs
Economy 127 cm x 192 cm 126 Rs
Krupanidhi Degree College, Bangalore 26
KITEX BED SHEETS
SWEET DREAMS 50:- Beautiful bed sheets available in beautiful design and
pleasant to suit bed rooms.
SWEET DREAMS 60:- Beautiful king- size bed sheets available in beautiful design
and pleasant colors to suit our bed rooms.
NAME LENGTH PRICE
Sweet dreams 50 128 cm x 225 cm 177 Rs
Sweet dreams 60 152 cm x225 cm 199 Rs
Sweet dreams double sheet 225 cm x 175 cm 304 Rs
Duo 1 sd 60 bed sheet + 2
pillow covers.
152 cm x 225 cm 330 Rs
Solitude 1 double sheet 152 cm x225 cm 186 Rs
Sweet dreams king size 250 cm x 225 cm 408 Rs
Duplex 1 solitude bed
sheet + 2 pillow covers
152 cm x 225 cm 306 RS
Soft dreams king size + 2
pillow covers
225 cm x 250 cm 575 Rs
Sweet dreams DS + 2
pillow covers
225 cm x 175 cm 435 RS
Krupanidhi Degree College, Bangalore 27
MULL
NAME LENGTH PRICE
Economy 127 48
Medium 128 60
KITEX DHOTHIES
SMARTLINE:- White single dhothy with streaks of either dark red or dark blue or
dark green lines, which can be worn equally at home and out doors
SMARTLINE GOLD:-Cream color single dhothy with streaks of Gold Jerry lines for
special occasions.
READY WEAR:-Plain white single dhothy you‟ll love to drape. The anywhere
anytime wears.
SAMRAT: - Pure cotton white double dhothy with lines in 5 different colors to
choose from.
NAME LENGTH PRICE
Ready wear 128 cm x 200 cm 120 RS
Smart line single. 120 cm x 200 cm 135 Rs
Smart line gold single 127 cm x 200 cm 150 Rs
Smart double 127 cm x 385 cm 250 Rs
Smart plus double dhothy
white board Kara
127 cm x 835 cm 245 Rs
Smart ivory plus XL 127 cm x 400 cm 260 Rs
Smart premium RX 127 cm x 385 cm 310 Rs
Krupanidhi Degree College, Bangalore 28
DAGO BERT
Kitex also introduce shirting and suiting in the market under the brand name Dago Bert.
Material used for the shirting is pure cotton and for suiting is polyester mix viscose. Dago
Bert shirting and suiting are woven from the finest cotton, using the toughest materials that
are soft to touch when draped on your body .Featuring the most contemporary designs along
with the latest weaving techniques, Dago Bert shirting and suiting are available in a variety of
colors and shades.
ADONIS & AGNA (INNER WEAR)
Kitex has made its foray into the untapped lingerie with brand name Adonis & Agna.
ADONIS-Inner wear for men and AGNA- A range of refined vests and brief: and AGNA A
range of Bras & Panties ensures seamless fit and finish. Both brands are use specially
processed fabric which fells smooth and healthy even on the soft skin of new born.
( (http://annagroup.net/products.php?c=2), 2012)
Krupanidhi Degree College, Bangalore 29
4. VISION AND MISSION
A world class manufacturing company focusing on all around business excellence through a
Total Quality Management (TQM) system with committed leadership, effective team work,
delighted customers and satisfied employee in an environment friendly organization
4.1 FUTURE VISION OF KITEX LIMITED
To reach excellent quality standards in the coming years.
To keep in pace with modern technologies and complete.
To organize supply of material at minimum cost without any compromise in quality.
VISION
World Class Manufacturing
CUSTOMER POLICY
AND
STREM
QUALITY
PROCESS &
PEOPLE
LEADERSHIP
& TEAM
WORK
Krupanidhi Degree College, Bangalore 30
4.2 MISSION OF KITEX LTD
To manufacture fabric and processed fabric as per the specification effectively in a
professional and environment friendly manner, on time and at the right cost with high
customer specification to become a world class organization through continuous
improvement.
Objective:
BAG DIVISON
To increase the sales quantity of school bags by 10% with respect to the sales quantity
for the previous year.
To reduce the customer complaints by 10% with respect the previous year.
GARMENTS DIVISION
To increase the capacity utilization by 25% from existing level.
To increase the number of dealers by 25%.
Krupanidhi Degree College, Bangalore 31
5. COMPETITORS
From the marketing department, we can get an idea about their products, marketing
strategies, strength and weakness, competitors, competitor‟s strategy, attraction, weakness
etc.
Major competitors are MCR, Angel, Janson, VBC, KKB, Ram Raj and others. The
competitor‟s strategies are advertising, promotion through film stars. This is very high in the
case of MCR. Incase of MCR dhothies, a large variety of „Karas‟ have been introduced in the
market. They also sell different colors of lungies in market for attracting customers. In case
of Kitex Limited, the margin is comparatively low. The major problem of competitors
products are poor color dyeing, poor quality etc. compare to Kitex products other products
are cheaper. Most of the customers choose Kitex products because of its quality, most of the
customers choose other products because of the higher price of Kitex products.
Kitex products achieve maximum share in the period of festivals like Onam, X-mas, Ramzan,
Vishu etc. In normal case profit margin of products are 15 % to 25%.
In case of technical campaign Kitex introduced new weaving sulzer looms which are
imported from Switzerland. The only competitors having this type of technology are Janson.
The quality image and brand image of Kitex products in the market is very high.
Ownership Patter & Legal Frame Work Of the Organization
This is a private limited company with three directors. Most of the shares are held by them.
Kitex is limited to the extent of face value of shares contributed by them.
(http://www.mcrtextiles.in/), 2012)
Krupanidhi Degree College, Bangalore 32
6. ORGANIZATIONAL HIERARCHY
Kitex Limited follows the line/military organization structure. Managing director is the top
level. Other functional managers followed by him. The span of control of the organization is
narrow spans .The main advantage of this type of control is that close supervision, clear chain
of command and close control and fast communication between subordinates and superiors.
The model of the organizational design is mechanistic model.
An efficient management system plays a dominant role in the success of all business units. It
is this section that declares the level of output, its product in pattern, pricing technique,
marketing style and even the mode of conduct of its executives.
The Chairman and the managing director who are the representatives of the shareholders take
the important decisions of the group concerns .they perform strategic planning and policy
making function of Kitex Limited .for their help, the General Manager, top executives of the
company‟s Management are appointed .General Manager is responsible for the smooth,
efficient and productive functioning of the unit, from the production to the marketing.
The middle level management comprises of production manager, marketing manager,
finance manager, personnel manager, purchase manager, store manager and quality
controller.
Krupanidhi Degree College, Bangalore 33
ORAGANISATIONAL FLOW CHART
Chairman
Managing Director
General Manager
Finance
Manage
r
Personnel
Manager
Production
Manager
Quality
Manager
Store
Manager
Purchase
Manager
Marketing
Manager
Assistant
Manager
Weaving
Master
Assistant
Inspector
Purchase
Officer
Office
Assistant
Assistant
Manager
Executive
Manager
Personnel
Officer
Shift In Checkers
Staff
Clerical
Staff Supervisor
Clerical
Staff
Foreman
Welfare
Officer
Workers
Marketing
Executive
Assistant
Manager Assistant
Manager
Clerical
Staff
Sales
Executive
s
Sales
Man
Krupanidhi Degree College, Bangalore 34
7.1 MARKETING DEPARTMENT
MARKETING DEPARTMENT STRUCTURE
Chairman and Managing
Director
General Manager
Manager
(Fabric)
Manager
(Processed Fabric)
Manager (Advertisement
& Sales Promotion)
Assistant
Manager
Asst. Manager
(Processed Fabric)
Asst. Manager
(Buy)
Assistant
Manager
Media Art Work
Marketing
Executive
Sales
Executive
Marketing
Executive
Marketing
Executive
Sales
Executive
Sales
Executive
Marketing
Executive
Marketing
Executive
Marketing
Executive
Sales
Executive
Sales
Executive
Sales
Executive
Krupanidhi Degree College, Bangalore 35
Kitex Ltd has got a very good marketing department controlled by efficient and dynamic
marketing manager. Marketing manager gives the detail of sale to general manager and
managing director. The company markets its products mainly through dealers. The company
markets its product mainly through dealers. The company has a dealer network of more than
2500 dealers all over Kerala including garments and Scoobee day bags. Almost all KITEX
products are available at the dealer‟s shop.
The product are transported to the dealers by the dealers by the company‟s own delivery
vans, sales executives take the order of different item from dealers once in a month. These
orders are sent to the company and the office staff processes them. The good are delivered to
the shop through salesman. He acknowledges the good received by dealer and the same is
booked as sales in the book at account and other registers are maintained by the company.
Mr. K.C. Pillai is the Marketing Manager.
INCENTIVE SCHEME TO DEALERS
In KITEX LIMITED, cash discount is the main incentive given to dealer‟s .if a dealer
purchase more quality at the same time makes payment in cash immediately, cash discount is
allowed. Apart from these dealers is given quality discounts also when they purchase more
goods at a time. Sometimes the dealers get cash and quality discount simultaneously.
Main incentives are:
Cash discount – An incentive that a seller offer to a buyer in return for paying
a bill owned before the scheduled due date.
Advertisement support.
This year the company expects 20-30% increase in sales.
Krupanidhi Degree College, Bangalore 36
COORDINATION OF MARKETING ACTIVITIES
The marketing executive in KITEX follows certain procedures. All sales executives have to
report to the Assistant Manager about sales in every day. The Assistant Manager and
Marketing manager are in constant touch with the sales executives who are in the field
.meeting of all sales personnel in marketing department is presided by the General Manager.
In this meeting all the activities and achievement are discussed. New plans and strategies to
increase the sales are formulated and other issues are discussed.
MARKETING POLICY
The marketing policy of KITEX Ltd is, in such a way that it does not entertain middlemen .a
direct marketing approach is adopted and all the dealings are direct. There are no stockiest of
wholesalers. It can be seen that KITEX by following this approach has a more favorable
condition in the market situation.
MARKETING FUNCTION
KITEX Ltd has a dealer network of more than 2500 dealers who are spread all over Kerala. It
sells all over Karnataka and Tamil Nadu. There are direct outlets in Kerala and Tamil Nadu.
Dealerships are allotted only after assessing of credit worthiness, efficiency etc...Dealers
obtain the products upon order over the van of company and also products are delivered
either at go down or show room.
MARKETING STRATEGY
Marketing department of KITEX is very vigilant of its environment and also very conscious
of market potential, about their major competitors. Company‟s strategies, weakness etc...As a
result of stiff competition the top management has appointed a general Manager in the
marketing and he looks over all activities very efficiently.
Major competitors of KITEX are MCR, Janson, Angel, Ramraj etc they adopt various
marketing strategies like advertising in media using film stars like MCR using Mohanlal as
their brand ambassador. These companies also offer a wide variety of Kara‟s and colors of
Krupanidhi Degree College, Bangalore 37
dhothies, which attract customers. Their marginal price will be also high when they sell to
their dealers but in the case of KITEX the margin is very less. Also the firm enjoys a good
market owing to its quality even through it has a bit high pricing, but when compared to other
company‟s poor quality products due to polyester mix, poor color etc it‟s profitable. Profit
margin of product is 15-20% .KITEX also has technical competence; it has introduced new
automatic weaving sulzer looms from Switzerland, which expects Janson no other
manufacturers introduced.
MARKET SEGMENTATION
The marketing segmentation procedure of KITEX mainly focuses on surveys. Marketing
Manager Conducts survey process. This includes informal interviews with a focus group of
customers. This is done to gain a clear insight in their motivation, attitude and behavior.
Using their findings prepare a formal questionnaire, which is administered to a sample of
customer to collect data on the following
Brand awareness and rating
Product usage and pattern
Demographic psycho graphic and graphical details of respondents
MARKETING MIX
It consists of everything a firm can do to influence demand for its product. Kitex also follows
the idea marketing mix, they are:
1. Place Mix:
Location of plant is one of the early decision of entrepreneur has to make for earning
maximum profit. Location determines the survival as well as the prosperity of business in the
free market economy. The unit is located Kizhakkambalam ,Aluva. The total extent of land is
around 165000 square feet. It is well connected with road. The availability of skilled and
unskilled labor is also a factor in selecting the location
Krupanidhi Degree College, Bangalore 38
Nearest places:
Railway station : 14 km
Airport : Cochin (2.5)
Town : 24 km
Hospital : Pazhayanadu (7 km)
2. Product Mix
The grey fabrics produced are the finest quality and it mostly used for various export
purpose. They provide grey fabric lungies, bed sheets, mull in various quantity as per
customer specification. The Kitex product is reputed for its quality and free from weaving
defects up to greater extent. The special feature is that raw material is passed through strict
inspection.
3. Price Mix:
The company maintain stable price for a long period of time. Price of product depends on the
price of yarn. It maintains constant price and concentrates on quality of product and so it
requires less investment in advertisement and sale promotion and also a very well formulated
pricing policy provided.
4. Promotion mix:
To promote its products advertisements are used in Kitex. The basic function of an
advertisement is to influence and motivate people to buy product. In Kitex various
advertisements agencies are called up on and brief idea is given about what to advertise and
these agencies prepare a pre demonstration. The marketing manager (marketing) and the
general manager directly analyze and select the best among them and entrust the agencies for
covering their advertisement plans. Kitex chooses the following media:
(http://ism.net.in/clients/kitex_final_niju_anil_raju_shyam/about-kitex.html#about3)
Krupanidhi Degree College, Bangalore 39
T.V : DD, Asianet, Surya.
Video Ads : C.E.E Videos, SAN Videos
Close Circuit TV : K.S.R.T.C, Railway station
Print media : All dailies, Vanitha, Grihalakshmi etc
Demonstration and sponsor events : Banner, Meal board, wallpaper etc
Advertising agency : TVC Factory Ernakulum
Paper advertisement : Chavara Agencies, X Dous
KITEX CHANNEL OF DISTRIBUTION
Distribution is the act of carrying goods or service from the producer to the consumer.
DISTRIBUTION OF CONSUMER GOODS
Producer consumer
Producer Retailer Consumer
Producer wholesaler Retailer Consumer
DISTRIBUTION OF INDUSTRIAL GOODS
Producer Industrial consumer
Producer Agent Industrial consumer
Customers of Kitex are average and above average people. There is approach as favorable
condition for Kitex in the market and the company channel of distribution.
Krupanidhi Degree College, Bangalore 40
MARKETING SYSTEM
CRITERIA FOR SELECTING DEALERS
Usually not more than two dealers are appointed in a town. Dealers are selected on their
experience in relating potential of particular town. After selecting dealers a control a contract
is entered into between the dealers and company. The contract lays does items and conditions
of dealership and a deposit of 2000 Rs is accepted from them.
The deposit is repayable on the termination of dealership. Dealership can be terminated on
the interest of both the parties by giving a prior notice. Usually the dealers terminate a
dealership on bad performance or poor business.
SHOW ROOMS
The company has showroom sale in addition to the sales to the authorized dealers and
franchises. There are 10-15 showrooms situated in major town in Kerala .in all the showroom
all products of the group companies are sold at discount of 5% on maximum retail price.
PRODUCTION
DEALERS
SHOWROOM
CUSTOMERS
Krupanidhi Degree College, Bangalore 41
MAIN COMPETITORS
LUNGIES
Janson Ltd Coimbatore
Angel Lungies
KKB lungies
Bombay Dyeing
TATA Lungies
DHOTHIES
MCR Dhothies.
BED SHEETS
Bombay Dyeing
Janson Ltd
MAIN MARKETS
North America
South America
Western Europe
Eastern Europe
Africa
Southeast Asia
(Kitex Ltd, 2012)
(Kotler Philip and Armstrong Gray, 2008.)
Krupanidhi Degree College, Bangalore 42
7.2 FINANCE DEPARTMENT
FINANCE DEPARTMENT STRUCTURE
Chairman & Managing
Director
Assistant General Manager
General Manager
Finance Manager
Manager (Accounts)
Assistant Manager Assistant Manager Assistant Manager
Executive
Bank
Cashier Executive
Data Entry
Executive
Data Entry
Executive
(Excise)
Executive
(Fax)
Executive
Audit
Executive
Company
Krupanidhi Degree College, Bangalore 43
FUNCTIONS OF FINANCE DEPARTMENT
1. Recording of the day today transactions accounting.
2. Preparations of various statements regarding stock, receivable etc. which are to be
submitted to various authorities like bankers, insurance etc.
3. Planning and controlling of the expenses/fund for production.
4. Approving and making payments to different parties‟ creditors/suppliers.
5. Receiving payments from customers/bankers in specific time.
6. Raising short-term loans/credit from bank and other financial institutions.
7. Preparation of sales budget/revenue budgets and expenditure budget on a quarterly
basis.
8. Preparation and maintenance of costing record.
9. Preparation of fund flow and cash flow statement for every month.
10. Timely preparation &filling of financial records.
11. Preparing and filling of quarterly and final income tax returns.
12. Preparation/implementation of cost production and cost control programmers. In
addition to the above mentioned work the following reports are prepared by the
finance department.
Annual report containing past performance, current financial figures, profit/loss A/C,
Balance sheet and also financial statement.
Half yearly quarterly report.
Monthly report to top management on financial on financial performance of the
company including sales achieved, production achieved and profit generated.
Conduct and co-ordination of internal statutory audits.
Perpetual stock verification and asset verification.
Investment analysis/feasibility studies in production supply order received contract
etc.
Krupanidhi Degree College, Bangalore 44
The finance manager is responsible for maintaining fund at an optimum level. Care is taken
to see that working capital never gets blocked anywhere at any time. The company meets
working capital requirement usually by bank overdraft and other short term loans on the
security of stock of finished goods.
FUTURE PLAN
In the starting the company has investment of 2 crore, now they have 50 crore, and in 2012
they expect that it will be 250 crore. The plan their expansion procedure in 3 parts and each
involves a 25 crore investment. They expect to start their new venture named KITEX
GARMENTS DIVISION in 2010, and also expect to issue shares in the market the same
year.
DUTIES AND REASPONSIBILITIES OF FINANCIAL MANAGER
The role financial manager in KITEX LTD is to prepare the accounting and auditing of all
financial transactions of the organization and have the advisory function in financial and
establishment matters. Mr. Donny Dominic is the Finance Manager.
DUTIES
Maintaining the accounting position of the organization.
Preparation of budget estimates.
Preparation of administration report schedule of the employee.
Preparation of monthly and annual report.
Verification of all proposals related to finance.
Strict adherence of bill of material during purchase.
Assessment and collection of organization revenue.
RESPONSIBILITIES
Finance planning.
Raising of necessary funds
Controlling the use of funds
Disposition of profits.
Krupanidhi Degree College, Bangalore 45
FUNCTIONAL AREAS OF FINANCIAL DEPARTMENT IN KITEX
LTD
Determine financial needs.
Determine sources of funds.
Financial analysis
Optimal capital structure
Cost volume profit analysis
Profit planning and evaluation.
Capital budgeting
Financial manager is responsible for maintaining fund of an optimum level. Take care
that the working capital never gets blocked any point at any time. The company meet
working capital requirement usually by bank over draft and other short-term loan on the
security of stock of limited goods.
Krupanidhi Degree College, Bangalore 46
7.3 HUMAN RESOURCE DEPARTMENT
HUMAN RESOURCE DEPARTMENT STRUCTURE
(Kitex Ltd, 2012)
General Manager
Personnel & Administration Manager
Personal Officer Administration
Officer
Security Officer
Administration
Officer
Hostel Warden Canteen
Supervisor
Clerical Staff
Security Staff
Krupanidhi Degree College, Bangalore 47
In Kitex Ltd the HR department is very effective and efficient. This department includes
planning, organizing, staffing, leading and directing human resources. The company must
find new way to enlarge the knowledge, experience, talents, energy of employees to find the
hidden values in organization and leverage that value to achieve strategic goals.
ROLE OF HR MANAGER
Advisory role.
Operative and service role.
Conciliator role.
FUNCTIONS OF HUMAN RESOURCE DEPARTMENT
Human Resource planning.(HRP)
Industrial relations
Recruitment.
Interview and selection
Probationary period.
Training and development
Employee remuneration.
Performance appraisal.
1. HUMAN RESOURCE PLANNING
Human Resource Planning is a process by which manager determine how organization move
from its current human resource position to its desired human resource position. For this in
KITEX Ltd the concerned department is always updating the list of people.
(Aswathappa, 2005)
Krupanidhi Degree College, Bangalore 48
2. INDUSTRIAL RELATIONS
Essentially industrial relation is concerned with the relationship between management and
employees. In Kitex Ltd and all other Anna Group of companies the management is very
conscious about to maintain good industrial relation between management and employee and
the role of regulatory mechanism is resolving any industrial disputes.
3. RECRUITMENT
In Kitex Limited the personnel and administration department have a clear cut recruitment
planning. For this they give advertisement in news paper and other media. After collecting all
application, personnel department sort these application and call up suitable candidates for
interview.
This process comprises 5 interrelated stages they are:
Planning
Strategy development
Searching
Screening
Evaluation and control.
Also internal recruitment is taken place in Kitex Limited. This includes present employee‟s
referrals former employee, and former application. For the recruitment of office staff and
managerial personnel external sources like advertisement in news papers, employment
weeklies etc. are used. Other sources of advertisement are company‟s websites, campus
recruitment, employee reference and resumes of the candidates which the company passes.
While selecting weaver trainees and helpers, qualification along with sufficient experience in
the industry is also performed. They can directly appear for interview. Sometimes selection
order is on the basis of recommendation from know persons. For skilled job like fitter,
electrician, carpenter, instrument, technician, jobber .Information is passed through
advertisement.
Krupanidhi Degree College, Bangalore 49
4. INTERVIEW AND SELECTION
After screening test the candidates are called for an interview. For the post of office staff and
managerial positions a written test is also conducted. For managerial position various tests are
it is also conducted with the help of expert in the field. The interview panel consists of MD,
GM. Departmental Head and Administration Manager. For the post of workman interview
selection is conducted usually on 2nd
Saturdays. The organization conducted walk-ins and
write-ins in all major towns in Kerala inside the organizations.
STAGES IN SELECTION PROCESS IN KITEX
5. PROBATIONARY PERIOD
After the selection process the selected supervisory and managerial position holders have to
undergo a probationary period of 6 months. During this period monthly evaluation is done on
the basis of the following criteria.
Receiving Application
Screening of Application
Employment Test
Interview
Reference Checking
Final Selection
Rejection of
Unsuitable
Candidates
Krupanidhi Degree College, Bangalore 50
Professional knowledge
Promptness.
Dependability.
Attitudes toward supervisors.
Attitude toward a co-workers
General ability.
Attendance and punctuality.
6. TRAINING AND DEVELOPMENT
In KITEX LIMITED there is two-month training program to all newly appointed employees.
Only after this they will assign their job.
BENEFITS OF TRAINING TO KITEX LTD
Quick learning.
High productivity.
Standardization of procedures.
Less supervision.
Economical operation.
High morale.
7. EMPLOYEE REMUNERATION
In KITEX LTD, The organization provides all the remuneration insisted by the government
of India and the government of Kerala. This including the following:
WAGES AND SALARY
The company follows time rate system and piece rate system. The employees other than the
office staff and plant general workers come under this system: in which payment is made
according to quality is produced on monthly basis. Salary is paid along with a pay slip, which
contains the details of the pay. At the time when the employee receives salary he should sign
on the copy of pay slip and it is field in the department.
The compensation packages consist of
BASIC PAY+DA+HRA+CONVEYANCE+CHILDREN‟S EDUCATION ALLOWANCE.
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INCENTIVES
Besides the above package the employee well get other incentives like production incentive,
Sunday-Monday incentive etc.
EMPLOYEE WELFARE MEASURE
In India labor welfare measures can be divided into statutory welfare and non statutory welfare
measures.
A. STATUTORY WEALFARE MEASURES
The major social security and welfare scheme in India is the Employees State Insurance (ESI)
and the Employees Provident Fund (EPF)
I. AN ABSTRACT OF THE ESI ACT, 1948
ESI scheme was introduced in KITEX LIMITED. The ESI is a contributory scheme, with the
employer paying 4.75% of wages and the employee contributing 1.75% of his wages to the
fund. The ESI Act is applicable only to all factories situated in notified area and employing
more than 20 persons, unless otherwise notified by government. This scheme covers all
employees including causal and contract drawing wages below RS 6500/pm.
II. AN ABSTRACT OF THE EPF ACT, 1952
EPF Scheme is there in KITEX LIMITED. The Employees Provident Fund Miscellaneous
Provision Act 1952 is aimed at providing social security to the covered employees. Normally,
established employing 20 or more employees are covered under the act. There is no salary
limit. It is also contributory scheme with the employer and employee contributing 12% of
their wages to this fund.
ANNUAL BONUS
The company pays annual bonus to its employees based on the company‟s performance in the
previous year, 8.33% of the profit is given as bonus every year.
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GRATUITY
KITEX LTD maintains a Gratuity scheme for its employees who have completed 5 years of
experience including training period.
B. VOLANTARY WEALFARE SCHEME
Attendance bonus.
Uniform allowance.
Children‟s education allowance.
Free tea and coffee for office staff.
Funeral expenses on the death of family members of employees.
Saving scheme for employees.
Stands as guarantee for the employees to buy vehicles and household on hire
purchase.
Leave –earned leave for 15 days is guarantee to the employees. Maternity leave of 12
weeks also granted to the female employees.
Free accommodation is granted to the female employees.
Night shifts allowance and over time allowance.
Health and Safety measures –there are various types of safety measures such as
earplug, mask, safety belt etc.
HOSTEL
In KITEX LTD, organization provides separate hostel facilities for the ladies and gents. It
includes canteen, accommodation, entertainment facilities. For the purpose of administration
of ladies hostel, organization has appointed a hostel warden and 2 assistant warden and hostel
staff. The personnel and administration department conducts an annual day celebration for
the employees.
SECURITY DEPARTMENT
For the security and discipline of the KITEX Ltd the organization provides a security
department under personnel and administration department. This includes a security officer
and security staff. The main function of the security officer is to check the baggage and
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carries coming to the organization and the products delivery items from the packing section.
The security officer marks the quality of the product, place, time etc.
TRADE UNION
There are companies, which are non-unionized. KITEX LTD is such a company .In Kerala
we can see a lot of labor unions and problems they create in industries. In this sense this is a
great privilege for the company as union free company, this is maintained in KITEX through
good employee relation.
8. PERFORMANCE APPRAISAL
Performance appraisal is a systematic evaluation of the industrial with respect to his
performance on the job and his capacity to development.
OBJECTIVES OF PERFORMANCE APPRAISAL
To assess the work of employees in relation to the job requirement.
To assess the strength and weakness of employees and to place the right man in the
right place.
To assess the performance of employees and give suggestion for improvement.
To assess the potential and capability of employees and recommend for promotion.
To know the problem of workers when they do the work.
To suggest suitable training and development program.
To divide workers into efficient and in efficient categories.
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7.4 PRODUCTION DEPARTMENT
PRODUCTION DEPARTMENT STRUCTURE
Chairman and Managing
Director
General Manager
Manager Manager
Shift in
Charge
Maintenance
in Charge
Preparatory
In Charge Shift in
Charge
Shift in
Charge
Supervisor
Jobber
Supervisor Supervisor
Helper
Jobber
Helper Helper
Jobber
Shift
Clerk Shift
Clerk
Shift
Clerk
Seizer
Worker
Winder
Worker
Beam driver
Worker
Worker
Boiler
Humidifier
Operator
Plant
Cleaner
MAINTENANCE
SUPERVISOR
Electrician
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Production means conversion of raw material into finished goods with the help of certain
process. Production management involves planning, organizing, directing, and controlling the
activities to the production function. Mr. P. Rajeev is the Production Manager.
FUNCTION OF PRODUCTION DEPARTMENT
Design of the product.
Design of the production system.
Production planning and control
Selection of location.
Layout of plant
Selection of plant and equipment
Research and development
The products manufactured by the company are industrial goods and consumer durable
goods.85% of the goods (gray cloth) is sold to other company or production units. In the
textile industry where the same are converted into useful or consumer durable textiles or
garments.15% of the gray cloth manufactured by the company is converted in to lungies,
dhothies, mull, and bed sheets. Various production units at Coimbatore do the conversion
process. The conversion process includes Bleaching, Dyeing, Resizing, Printing etc. After the
work is done different varieties of goods are received back, then quantity checked,
packed and marketed by the company.
PRODUCTION CAPACITY UTILIZATION AND MODERNIZATION
The production department or factory has installed capacity of 480 power looms.100%
capacity for production is utilized for production. In addition to the power looms, the
company has installed 20 modern looms, it is known as sulzer looms. It is imported from
Switzerland. Power looms are shuttle looms as sulzer looms are shuttle less looms.
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ADVANTAGES OF MODERN /SULZER LOOMS
High speed
More production capacity than power looms
It is fully automatic and high quality of goods produced
Manpower requirement is very less
Width of the cloth produced by modern looms are more than power looms
Ordinary power looms require two people per loom while modern looms require only
one person that is 50% Labor expenses can be saved.
DISADVANTAGES OF MODERN POWER LOOMS
It requires qualified and highly experienced personnel.
Since it operates automatically, it requires high quality yarn.
Since it uses high quality yarn it produces high quality clothes
There for these cloth will be of high prices, which cannot be affronted by common
people.
SHIFTS
The production department works in 3 shifts:
1. 8:00 AM TO 4:30 PM
2. 4:30 PM TO 1:30 AM
3. 1:30 AM TO 8:00 AM
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RAW MATERIALS USED
100% yarn of different specification for different variety of gray cloth used in
production from major raw materials.
Other raw materials are sizing chemicals, tapioca starch ,adhesives etc
Other indirect materials are different consumable stores, spares cleaning chemical
The company has never faced raw material shortage .this is due to efficient supply chain
management, scientific estimation of raw material requirement and timely procurement of
raw materials. The purchase department plays an active role in the effective and timely
procurement of raw materials.
PACKING SECTION
This section is come under production department .there are 35 workers in this section.
Checking is always done through the packing process. In packing section packers pack the
cloth and dispatch for delivery. After security checking the delivery process will complete.
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PRODUCTION FLOW CHART
Cotton Yarn
Warping
Sizing
Beam
Drawing
Pirn Winding
Weaving
Grey Cloth
Folding Rechecking
Cutting Dispatch 1
st Piece Inspection Checking
Bailing
/Packing
Recounting
Grading /
Sorting Unwinding
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PRODUCTION PROCESS
It is divided into two. First one is the waving preparatory and the other one is the weaving
process. Weaving preparatory is the main process which includes various sub-processes like
warping, sizing, beam drawing, pirn winding, cone winding etc...
WARPING
It is the process of winding 100% cotton yarn of the requirement specification on beams
without packing a single thread. The cotton yarn so wound on the beam is called warp. The
number of threads will determine width of the cloth. The more number of threads, the more is
the widths of the cloth. The length of the warp determines the length of the cloth.
SIZING
It is the process of strengthening the yarn wound on the beam (warp).in this process the warp
is passed through sizing the chemical, which are mainly tapioca starch and other adhesives.
The process makes the yarn more rigid and this prevents it from breaking while weaving.
After sizing the yarn gets shake to each other and it is dried.
BEAM DRAWING
It is the process of passing each separate yarn through a set of needles. Trained and
experienced beam drawer does this work manually .the yarn, which is passed through this
needle like beam, forms the lengthwise portion of the cloths.
PIRIN WINDING
It is the process of winding yarn on the pirns .This yarn need not require sizing. This yarn
wound on pirns is used for wefting .these are two types of winding machines in KITEX Ltd.
Automatic pirn winding machines
Circular winding machines.
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WEFTING
Wefting is the process of weaving the warp with the yarn wound on pirns. The pirns is
inserted in the loom regularly. This result of this process is 100% gray cloth.
CUTTING, UNWINDING AND CHECKING
The woven fabric cut from the loom is again unwinded and checked the quality by the
supervision of trained checkers and recheckers before folding and bailing. The checking is as
per American 4 point system.
FOLDING
After classifying the fabric is folded by machine and counted the meter age and marked.
RECOUNTING
This meter age is again recounted and assured the fabric and sealed.
GRADING/SORTING
In the grading department the following process are carried out grading/sorting of gray
fabric checking all the technical conditions stipulated aped mark with a pen on the ends of the
fabric piece indicating the fabric style, measure and grade. For fabric of each style are strictly
satisfied at the same time piece length is measured and the production of fabric per shift is
registered by cleaning the fabric from fluff, thread ends ,knots and tags putting a special mark
with pen on the end of the fabric piece indicating the fabric style, measures and grades
BAILING/PACKING
The graded or sorted fabric is packed in bailed condition under the supervision on the basic
quality. The standard packing in one all contains 100 meters. For bailing the company has a
bailing press, which is in good working condition.
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TOTAL QUALITY MANAGEMENT (TQM)
Total Quality Management (TQM) journey started at ANNA Group on 6th
June 2005.it is a
long journey towards success. Quality means 100% quality in attitude, speech, people, work,
discipline, surrounding, products etc. The Company introduced 5 S Techniques for good
housekeeping, as a part of the TQM. 5 „S‟ techniques are a Japanese method. It helps the
company to:
Improve productivity
Save time
Solve space constraints
Improve morale of the employees
5 ‘S’ TECHNIQUES
5 „S‟ Techniques for good housekeeping are as follows:
1. SEIRI (SORTING)
Segregate required, usable, re-workable and absolute items.
Dispose of the unwanted items
Clear off walkways‟
(One picture is worth more than a thousand works)
2. SEITON (SYSTEMATIZING)
Use labels, color codes for easy identification
Use index for files, record, drawing etc. To facilitate irretrievability
Plan storage with accessibility
(A place for everything and everything in its place)
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3. SEISO (SHINING)
Inspect and clean the supply lines, go downs, scrap yards and gardens.
Clean up workplace, machines and tools after use.
Identify root causes of loud noise, vibration, heat buildup in equipment and take
remedial action.
(Spic and span leads to zero break down)
4. SEIKETSU (STANDARDIZING)
Develop standard.
Establish checking procedure
Create visual controls
Devise ways and means to expose problem
(Action speaks louder than word)
5. SHITSUKE (SELF DISCIPLINE)
Develop action plan for maintaining the set standard
Give unambiguous advice/instruction to your work associates.
Carry on 5‟S activities as a matter of habit and enthuse to practice 5‟S
Conduct self audit.
(Be a self starter)
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7.5 PURCHASE DEPARTMENT
PURCHASE DEPARTMENT STRUCTURE
Purchase department plays very important role in the company and in every vital factor
concerning the manufacturing quality, cost, efficiency, and prompt delivery of goods,
customer service, machines and tools maintaining the desired standard of quality. Purchasing
is the most important function of material management as the moment an order is placed for
the purchase of materials: a substantial part of the companies finance is committed which
affect the cash flow position of the company.
Chairman and
Managing Director
General Manager
Purchase Manager
Purchase Officer Purchase Officer
Office Assistant Office Assistant
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A manager assisted by two purchase officers and an office assistant heads this department.
The manager gives the details about the purchase to general manager and managing director.
Mr. Venu Gopal is the purchase manager.
OBJECTIVES OF PURCHASE DEPARTMENT
To make continuous availability of materials so that there may be uninterrupted
production.
Make purchase at the most economic price.
Make purchase in reasonable qualities so that minimum investment can keep in the
materials.
Make good report with suppliers which will ensure the best form of supply materials.
Make purchase of good qualities materials to have minimum wastage and loss in production.
FUNCTION OF PURCHASE DEPARTMENT
Before purchasing materials purchase department should know the total requirements of
various materials of different department.
Locate the source of suppliers.
Select the vendor affecting checking term and conditions.
Prepare comparative statement after analysis of quotations.
Orders are to be placed with suppliers after verifying quality and quantity.
Minimum stock and inventory balance should be maintained.
Excess stock should be avoided.
Material should be kept in standard containers and packages.
Up to date record of purchase should be maintained.
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TYPES OF MATERIALS PURCHASED
100% Cotton yarn of different specification.
Sizing materials-tapioca starch and adhesives.
100m spares.
Electrical equipment and accessories.
Packing materials.
THE CHART OF PURCHASE PROCEDURE
Production Planning (1)
Purchase Requisition (2)
Purchase Department (3) Purchase
Order (4)
Inspection
Report (11)
Supplies (5)
Material (6) Receiving Section (7)
Account Department
(12)
Payment (13)
Inspection (8)
Material (9)
Store (10) Invoice
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PURCHASE PROCEDURE
When the store department is in need of goods, the departmental head will send a “purchase
requisition” to purchase department showing quantity, quality and the time by which the good
are required .after ascertaining the requirements, the purchase department should invite
tenders from approved vendors. After accepting the best tender, the purchase department
place order. The details of goods date of delivery and mode of transport etc. It should be
recorded in the purchase order book.
The purchase order should be prepared in quadruplicate. One copy should send to the
supplier. The second copy is to be sending to the department requisitioning the goods and the
third copy to the account department and the purchase department should retain the last copy.
On receipt of goods, the gatekeeper, after examining them properly, should enter the
particulars of goods received in the “goods inward book”. Then he should send the goods to
the store department, where they are kept. After receiving the goods, the stores department
should prepare a “Goods Received Note” and send a copy to the purchase department. After
receiving the GRN, the purchase department should compare it with the purchase order to
ensure that they are o the same quantity and quality ordered.
Then another clerk should check the details of the invoice and calculations made there in.
After proper verification, the invoice should be handed over to the accounts department for
payment. The accounts department should compare the invoice with the purchase order and
verify the calculations. If the goods received are according to the order and calculations
found correct, the account department should record the same in the purchase book. Then the
invoice should be passed for payment. In the case of goods returned to the suppliers, a proper
record should be maintained in the Purchase Return Book, a credit note should be obtained
for the amount and for other allowance claimed from the purchase department.
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7.6 QUALITY CONTROL DEPEARTMENT
QUALITY CONTROL DEPEARTMENT STRUCTURE
Manager
Quality Inspector (Grey
Fabric)
Quality Inspector
(Finished Fabric) Quality Inspector
(Raw Materials)
Asst. Inspector
(Yarn)
Checkers Asst. Inspector
(Spare Parts)
1st Piece Inspector
(Yarn)
Re checkers
Checkers
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QUALITY CONTROL DEPARTMENT
The company has ISO certification. The company has given different equipment and
mechanism to ensure quality at different stage of production. It aims at maximum quality at
minimum cost.
YARN
Before purchasing the yarn the quality parameters are overhead and getting assurance from
the yarn suppliers such as count, imperfect item level, 60% of the count,60%of the strength of
the yarn for checking or measurement the above parameters various equipment are available
in the laboratory. The company purchasing a quality yarn that is auto core, auto spice,
electrically fire cleared comber yarn for making 100% obeying standard quality fabric for
export garments.
GREY FABRIC
The buyers have their own standards for the quality and company always satisfied the
requirement of the buyer. Even though the company followed a standard quality policy, 4
point systems from the top file distributors association, INC U.S.A and American textile
manufacture institute, INC New York the penalty or point are calculated according to the
length of the defects as follows:-
Length of the defect in the fabric in
either length or width
Demerit
Up to 3 inch 1
Over 3 inch up to 6 inch 2
Over 6 inch up to 9 inch 3
Over 9 inch 4
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Now one yarn is to be penalized more than 4 points. All holes are 2 or more broken ends will
be penalized with 4 point. Any running defect more than 4 continuous yards will cause a roll
to be rejected. Usually fabrics are graded first, if the demerit points do not exceed the limits.
But the acceptance tolerance has to be confirmed by the buyer. In woven fabric, demerit
points of maximum of 40 point per 100 square yard are given.
ORGANISATIONAL CONTRIBUTION TO SOCIETY
MANAGEMENT REASPONSIBILITY
"To design the quality policies and objectives, responsibility,
authority and organizational interface of management personnel, methodology for
preparation of business”
Planning analysis at the company level data and also includes measurement of customer
satisfaction idea. To define environmental policy and rules, authorities of personnel with
respect to environmental management system and mode of communication.
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7.7 STORE DEPARTMENT
STORE DEPARTMENT STRUCTURE
STORE DEPARTMENT
The manager heads store department. He is assisted by four persons, two in general shift and
one each in other two shifts. The store manager is reporting general manager.
The store department KITEX stores all the materials and controls the movement of the
materials to different department. It store materials like sizing chemicals, yarn of different
specification, adhesives, spare parts, electrical goods, lubricant tools, office stationary,
packing materials etc. the items are coded for easy handling. Due to lack of sufficient space
in store and to facilitate easy handling, packing materials and yarn are stored in
GENERAL MANAGER
STORE MANAGER
OFFICE
ASSITANT
OFFICE ASSITANT
OFFICE
ASSITANT
OFFICE
ASSITANT
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corresponding departments but the issues of raw materials are controlled by the store
department. Store manager with the help of purchase manager and production manager plans
material storage.
STORE DEPARTMENT STRUCTURE
Storage of all items of raw materials including sizing materials, yarn of different
specification, spare parts, electrical items, lubricants tools, office stationary, packing
materials etc. is the responsibility of store department. Functioning of store department is
controlled by production manager. Material storage is planned by the store manager with the
help of purchase and production department. Yarn and packing materials are stored in the
production department go down due to lack of sufficient in the store and to facilitate easy
handling of both the item.
STORE MANAGER
STORE ASSISTANT
STAFF
STORE OFFICER
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FUNCTIONS OF STORE DEPARTMENT
Issues of raw materials which are ordered by the various functional units. The raw
materials are issued when material requisition note is received from supervisors of
concerned section in production department.
Recording quality, quantity and other specification of items issued by stores
department in store in ledger account for inventory control.
Availability of materials of checked through computer and verified it.
The physical stock is taken and is checked by store department and also by internal
auditors. Stock verification is done independent of store keeper and store manager.
The materials stocked should be preserved will so as to protect them from
deterioration. It is done with the help of eco-friendly chemical and is insured against
fire.
RECORDING OF STOCK
Perpetual stock record is kept for raw materials, spares, work in progress and finished goods.
Are these records are periodically reconciled with accounting records. This is a periodically
reporting of storage or excess. If differences are there, they are investigated and necessary
adjustments are made in the final accounting records and store ledger accounts maintained in
the stores.
The store department is fully computerized. A special software package is designed and
installed for inventory management in the stores. All the receipts and issues are recorded in
the computer ABC analysis of inventory is done on regular basis of physical stock check
once in every month by the store department and internal auditors.
STEP IN RECEIVING MATERIALS
Visual inspection
Preparation of receiving report
Preparation of inspection report
Dispatch of above report to financial department for passing bills and arranging
payment.
Preparation of rejection note of materials
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MATERIAL CONTROL SYSTEM
The company has material control system which ensures that right quality of material is
available in to right quality of right time and right place with right amount of investment.
Two level of material control exist in the computing quality control and financial control.
Production manager are primarily interested in quantity control because it is their
responsibility to see that there is no stock out problem.
FEATURES OF MATERIAL CONTROL SYSTEM
Continuous availability of all types of materials in the factory
No excessive investment in stock materials.
While purchasing materials, it is seen that it is purchased at reasonable low price.
There is minimum wastage of material while these are being stored in the go down by
the store department
Information about availability of materials is continuously made available by the store
manager.
There is proper co-operation and co-ordination and co-ordination among department.
As a part of material control system there exists an internal check on material so as to
avoid misappropriate of store items.
TECHNIQUES OF MATERIAL CONTROL
Level setting, EOQ.
ABC analysis and VED analysis.
Perpetual inventory system.
Material turnover ratio.
Material cost report.
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INVENTORY CONTROL ANALYSIS
In KITEX the major technique used in controlling the inventories is ABC analysis .also VED
and Economic Order Quantity techniques, Turnover Ratio is calculated. It is done regularly.
All stock is kept in assigned area and the accesses to these areas are strictly restricted. The
inventory control systems are designed in such a way that the production is not interrupted in
any way. Proper planning, purchasing, handling and accounting of materials have helped
company to control the cost of production. Thus it aims at qualitative, quantitative and
financial control.
ORGANIZATION CHART OF STORE DEPARTMENT
Production Control Stock
Stock Delivery
Report Stock A/C Section
Store Issuing
Section
Material
Store Issuing
Section
Receiving
Report
Material
Store
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8. SWOT ANALYSIS
The basic objectives of SWOT ANALYIS is to provide framework to reflect on the ability to
overcome barriers and to avail the opportunities emerging into changing environment ,the
diagnosis of strength and weakness can be fruitfully done if the environment factors and
market conditions are considered always with the internal capabilities. SWOT analysis is an
important tool to find strength, weakness, opportunities and threats.
8.1 STRENGTHS
It is a well established firm and has wide acceptance in the domestic market
.The company manufacture various products like bags, garments etc which are of high
product quality.
The company has highly trained and motivated workforce.
Kitex is one of the largest manufacturers of textile product in Kerala.
Kitex Ltd is an ISO 9001-2000 certified company.
The company maintains better commitment to the society through their service.
The company maintains a large number of loyal customers.
The company is managed by a team of professionals.
8.2 WEAKNESS
The company faces high cost of production due to increases prices of raw materials,
labor etc.
The company lacks sufficient modern weaving machines.
It also lacks modern quality checking machines.
There is no 100% utilization of the installed capacity.
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8.3 OPPORTUNITIES
Growing market demand is a good opportunity for the company to enhance its
production.
It has increased opportunity for exporting its products.
Development of new market is also helps the company.
Financial position is good. So they can go for improved means of production.
Now a day‟s customers focus on more on quality products.
Increasing population also provides a better opportunity for the company in textile
market.
India with large cotton cultivation has a great space in textile market.
Strong dealer network.
Customers demand toward quality products.
8.4 THREATS
Growing competition
Availability of duplicate products in the market is a major threat.
The company also faces increased competition in the global market.
Technological advancement is required for the future development of the company
Changing rules of government relating with textile industry.
India faces great threat from china in textile market.
Seasonal fluctuations also affect the sales of the company.
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9. PORTERS FIVE FORCES MODEL THEORY
9.1 THREAT FROM NEW ENTRANTS
Kitex Ltd produces quality products and has competitive advantage over competitors.
Huge investment in infrastructure is required.
Cost of the raw materials is increased from last few years. Now the company is trying
to import low cost high quality raw materials from Bangladesh and China.
Starting this kind of business is little difficult because there is number of government
guidelines like pollutions, waste, water crisis, place etc.
9.2 AVAILABILITY OF SUBSTITUTES
The relative price and performance of substitute.
Switching cost of customer is low
Kitex having a good brand image in the market.
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9.3 BARGAINING POWER OF BUYER
Kitex Ltd gained a good range of satisfied customers through the timely delivery of
quality products.
Lots of brand choice available for similar qualities with different price.
Kitex Ltd having large volume of customers especially in Kerala.
As the company getting bulk orders for the product they are providing at reasonable
rate
They are specialized in quality service best to the world class level bargaining power
of buyer are less.
9.4 BARGAINING POWER OF SUPPLIERS
Kitex have the best suppliers from all part of the country.
Always they try to find and add new suppliers to their list based on quality and price.
9.5 COMPETITIVE RIVALARY
Kitex Ltd mainly concentrates on Kerala market.
Customers satisfied with the product they are producing.
No customers are doubtful to prefer Kitex products because of the quality and price.
A good growth in the industry so that the company trying to find new market along
with the existing clients.
Consistent and diversified growth
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10 MCKINSEY’S 7S FRAME WORK
10.1 STRATEGY
The company has recorded steady growth in its productivity as well as quality and its
profitability.
Quality leading to customer satisfaction shall be their top priority
An ambulance service is provided to all BPL families of Kizhakkambalam
panchayath.
The firm provides the quality product to the customers and people of nearby arrears
at reasonable price.
10.2 STRUCTURE
Kitex Ltd follows line organization structure. Managing Director is the top level.
Functional manager followed by them.
In Kitex there are 7 department namely, purchase department, production department,
finance, human resource, marketing, store, quality department.
Chairman and managing director and representative of shareholders are takes the
important decision of the group.
Both implicit and explicit communication is followed by the organization.
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10.3 SKILLS
Human Skill –It involves ability to interact effectively with people.
Technical Skill – It involves technical knowledge and proficiency in certain
specialized field such as computers, manufacturing, engineering accounting.
Factory level employees are well trained to produce quality products.
Team coordination –Management where effectively coordinate all the activity in the
department.
10.4 SYSTEMS
Quality assurance policy
Flexibly working and work-life balance
Freedom of information
Gender equality scheme
10.5 SHARED VALUES
Quality
Equal opportunity
Integrity
Unity
10.6 STYLE
Leadership approach is very friendly.
In Kitex there is no trade union because of their employer and employee relations.
10.7 STAFFS
Competency level of employee is very high.
The staffs who are working in Kitex Ltd are highly educated with SAP software and
Usage.
Professional knowledge
600 people are working in Kitex Ltd.
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11. FINDINGS
The performance of the product is above expectations dealers and purchasers are
greatly satisfied with the product of Kitex Ltd.
Preferred price range of the products of Kitex is comfortable for an ordinary man.
Company provides step by step method to check the quality.
Purchaser prefer self decision in purchasing the products
MCR is the nearest competitor of Kitex products in the market.
It has been seen that the product has been great demand, is the availability of this
product at lower price with high quality.
No strike or trade union existing in the organization because of the good relation
between employees and management.
Young and skilled labors are working in the company; as a result the work is moving
speedy and is good quality.
Brand image and quality are the only factor which contributed to the popularity of
Kitex products.
Customer service provided by Kitex Ltd is very much better.
There is strict supervision as a result of no wastage of materials.
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12. SUGGESTIONS
Most of the customers are price sensitive, so if the company reduces the price of its
products, it will increase the demand in the rural area.
Company shall provide offers to the customers which will motivate them to buy the
products.
Complaints from the customers should be considered and step should be taken to
improve the satisfaction of customers.
Feedback should be taken from the customers so that the quality and price of the
products can be changed according to the customer‟s opinion. This will increase the
sales of their products.
Conduct market research every year.
Various sales promotion techniques are essential to increase the sales.
The company must take adequate step to improve its distribution system in order to
reach the products to maximum number of dealers and also to the village areas.
For more complex activity, more training should be given in order to reduce the
damage and other technical defects.
The organization should explain the training objectives to the employees in detail.
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13. CONCLUSION
The project study entitled “Organizational study of Kitex Limited, Kizhakkambalam” has
given me deep knowledge about the organization and the textile industry.
The industrial establishments of India, particularly in Kerala are passing through a tough
time. Inefficiency of management to solve the problems they face in their areas, labor
problems, government interventions, makes the growth of industries a bit harder. Yet from
this study it can be seen that Kitex Limited having a professional approach in all its functions
and transactions. The through the year have made a remarkable growth and it proved that it
strive well at all the conditions.
The organization study in the company was highly experiencing and the gentles and
cooperation shown by each and every employee of the company have contributed much to the
success of the organization study.
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14. BIBLIOGRAPHY
Aswathappa, K. ( 2005). Human Resource and Personnel Management. In A. K, Human
Resource and Personnel Management. New Delhi: Tata McGraw-Hill publishing company
Limited.
http://annagroup.net/products.php?c=2). (2012, september 1). Retrieved from annagroup.net:
http://annagroup.net/products.php?c=2)
http://annagroup.net/the-group.php. (2012, august 23). Retrieved 2012, from annagroup.net:
http://annagroup.net/the-group.php
http://annagroup.net/the-group.php. (2012, august 26). Retrieved from annagroup.net:
http://annagroup.net/the-group.php
http://annagroup.net/the-group.php. (2012, september 5). Retrieved from
www.annagroup.net: http://annagroup.net/the-group.php
http://www.mcrtextiles.in/). (2012, august 23). Retrieved 2012, from mcrtextiles.in:
http://www.mcrtextiles.in/)
K, A. ( 2005). Human Resource and Personnel Management. In A. K, Human Resource and
Personnel Management. New Delhi: Tata McGraw-Hill publishing company Limited.
Kitex Ltd. (2012, july 3). eranakulam , kerala, india.
Kotler Philip and Armstrong Gray. (2008.). Principles of Marketing. In Principles of
Marketing. New Delhi: Dorling Kindersley(India) Pvt. Ltd .
www.annagroup.net. (2012, september 3). Retrieved from www.annagroup.net:
http://annagroup.net/products.php)
www.cci.in. (2012, august 23). Retrieved 2012, from www.cci.in/pdf/surveys_reports/indian-
textile-industr: www.cci.in/pdf/surveys_reports/indian-textile-industry.pdf
www.cci.in. (2012, augest 12). Retrieved 2012, from wikipedia:
www.cci.in/pdf/surveys_reports/indian-textile-industr
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15. APPENDIX
15.1 ABBREVIATIONS
WTO World Trade Organization
ATC Agreement on Textile and Clothing
MFA Ministry Of Foreign Affairs
KITEX LTD Kizhakkambalam Textile Limited
TQM Total Quality Management
K.S.R.T.C Kerala State Road Transport Corporation
GRN Good Received Note
ESI ACT Employees State Insurance Act
EPF ACT Employees Provident Fund Act
GDP Gross Domestic Product
ICICI Industrial Credit and Investment Corporation of India
TQM Total Quality Management
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