os original report
TRANSCRIPT
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1.1. INTRODUCTION TO THE STUDY
This study is conducted to examine the functioning of an
organization. The organization which I chosen for my organization
study is KERALA LAKSHMI MILL pullazhi ,Yarn manufacturing
company.
The textile sectors closely linked with agriculture, hand looms, power
looms and garment and a number of ancillary industries and trade, thustouching everyday life of the common man. It provides employment to
many millions like cotton growers, processors, hand loom and power
loom weavers etc.
The Kerala Lakshmi Mill is situated at Pullazhi in Thrissur District.
This mill was promoted by Late Shri. Karimuthu Thyagaraja , and was
incorporated in 1961 , but started production only in 1963 .Now Kerala
Lakshmi Mill is a public limited company , and a subsidiary of
National Textile Corporation (N.T.C).
1.2. OBJECTIVES OF THE STUDY
To acquire knowledge about the functioning of various departments.
To know about the products and their uses and quality.
To know about the textile industry.
To have an exposure to the real working of the unit. To identify the problems of the organization.
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1.3. SCOPE OF THE STUDY
The study helped to understand the practical sides of thetheories that have been taught. This study describes the history,
genesis, activities and achievements of KERALA LAKSHMI
MILLS.
The study covers information on the present organizational
system of KERALA LAKSHMI MILLS. This information can help
in better understanding of the firm, its policies and strategies.
The study gives hints on how effectively an organization
can design its functional areas and how they can be constructed to
improve organizational effectiveness.
1.4. RESEARCH METHODOLOGY
To define any research problem and give a suitable solution for the
problem a sound research plan is inevitable. Research methodology
underlines the various steps involved by the researcher in
systematically solving the problem with the objective of determining
various facts
In this study the data were collected through primary and secondary
sources.
Primary data are the data which are collected for the first time for the
purpose of enquiry in hand. It is done by the person himself.
Secondary data refers to the data, which have been collected by some
other persons and the investigator uses it.
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Primary Data
The source of primary data was
Direct Interview with staff and employees. Direct Observation in the organization.
Secondary Data
The source s of secondary data was
Records and reports of the company. Product brochures. Internet.
1.5. RESEARCH DESIGN
The study is descriptive in nature and this is an attempt to
evaluate the performance of the company by studying the management
function of the different departments and marketing activities of the
company.
1.6. LIMITATIONS OF THE STUDY
Time factor is an important limit of the study. It is not possible to get all the information from the company. The study does not include the financial statements of the company Due to lack of time and busy work, employees could not reveal more
information.
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2.1. INDUSTRY PROFILE
2.2. Introduction
The Indian textile industry has a significant presence in the
economy as well as in the international textile economy. Its
contribution to the Indian economy is manifested in terms of its
contribution to the industrial production, employment generation and
foreign exchange earnings. It contributes 20 percent of industrial
production, 9 percent of excise collections, 18 percent of employment
in the industrial sector, nearly 20 percent to the countrys total export
earning and 4 percent to the Gross Domestic Product.
2.3. History of Indian Textile Industry
India has been well known for her textile goods since very
ancient times. The traditional textile industry of India was virtually
decayed during the colonial regime. However, the modern textile
industry took birth in India in the early nineteenth century when the
first textile mill in the country was established at fort Gloster near
Calcutta in 1818. The cotton textile industry, however, made its real
beginning in Bombay, in 1850s. The first cotton textile mill of Bombay
was established in 1854 by a Parsi cotton merchant then engaged in
overseas and internal trade. Indeed, the vast majority of the early mills
were the handiwork of Parsi merchants engaged in yarn and cloth trade
at home and Chinese and African markets.
In the 13th century, Indian silk was used as barter for spices
from the western countries. Towards the end of the 17th century, the
British East India Company had begun exports of Indian silks and
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various other cotton fabrics to other countries. These included the
famous fine Muslin cloth of Bengal, Bihar and Orissa. Painted and
printed cottons or chintz was extensively practiced between India,
China, Java and the Philippines, long before the arrival of the
Europeans.
The cotton textile industry made rapid progress in the second
half of the nineteenth century and by the end of the century there were
178 cotton textile mills; but during the year 1900 the cotton textile
industry was in bad state due to the great famine and a number of mills
of Bombay and Ahmadabad were to be closed down for long periods.
The two world War and the Swadeshi movement provided great
stimulus to the Indian cotton textile industry. However, during the
period 1922 to 1937 the industry was in doldrums and during this
period a number of the Bombay mills changed hands. The Second
World War, during which textile import from Japan completely
stopped, however, brought about an unprecedented growth of this
industry. The number of mills increased from 178 with 4.05 lakh looms
in 1901 to 249 mills with 13.35 lakh looms in 1921 and further to 396mills with over 20 lakh looms in 1941. By 1945 there were 417 mills
employing 5.10 lakh workers.
The first cotton mill in Ahmadabad, which was eventually to
emerge as a rival centre to Bombay, was established in 1861. The
spread of the textile industry to Ahmadabad was largely due to the
Gujarat trading class.
The partition of the country at the time of independence
affected the cotton textile industry also. The Indian union got 409 out
of the 423 textiles mills of the undivided India. 14 mills and 22 per cent
of the land under cotton cultivation went to Pakistan. Some mills were
closed down for some time. For a number of years since independence,
Indian mills had to import cotton from Pakistan and other countries.
After independence, the cotton textile industry made rapid strides
under the Plans. Between 1951 and 1982 the total number of spindles
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doubled from 11 million to 22 million. It increased further to well over
26 million by 1989-90.
Textile Industry in India is the second largest employment
generator after agriculture. It holds significant status in India as it
provides one of the most fundamental necessities of the people. Textile
industry was one of the earliest industries to come into existence in
India and it accounts for more than 30% of the total exports. In fact
Indian textile industry is the second largest in the world second only toChina.
Till the year 1985, development of textile sector in India took
place in terms of general policies. In 1985, for the first time the
importance of textile sector was recognized and a separate policy
statement was announced with regard to development of textile sector.
In the year 2000, National Textile Policy was announced. Its main
objective was: to provide cloth of acceptable quality at reasonable
prices for the vast majority of the population of the country, to
increasingly contribute to the provision of sustainable employment and
the economic growth of the nation; and to compete with confidence for
an increasing share of the global market. The policy also aimed at
achieving the target of textile and apparel exports of US $ 50 billion by
2010 of which the share of garments will be US $ 25 billon.
Current Position of Indian Textile Industry
Textile constitutes the single largest industry in India. The segment
of the industry during the year 2000-01 has been positive. The production
of cotton declined from 156 lakh bales in 1999-2000 to 1.40 lakh bales
during 2000-01. Production of man-made fibre increased from 835 million
kgs in 1999-2000 to 904 million kgs during the year 2000-01 registering a
growth of 8.26%. The production of spun yarn increased to 3160 million
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kgs during 2000-01 from 3046 million kgs during 1999-2000 registering a
growth of 3.7%. The production of man-made filament yarn registered a
growth of 2.91% during the year 1999-2000 increasing from 894 million
kgs to 920 million kgs. The production of fabric registered a growth of
2.7% during the year 1999-2000 increasing from 39,208 million sq mtrs to
40,256 million sq metres. The production of mill sector declined by 2.6%
while production of handloom, power loom and hosiery sector increased
by 2%, 2.7% and 5.1% respectively. The exports of textiles and garments
increased from Rs. 455048 million to Rs. 552424 million, registering a
growth of 21%. Growth in the textile industry in the year 2003-2004 was
Rs. 1609 billion and during 2004-05 production of fabrics touched a peak
of 45,378 million square meters. In the year 2005-06 up to November,
production of fabrics registered a further growth of 9 percent over the
corresponding period of the previous year.
2.4.PROBLEMS FACED BY THE TEXTILE
INDUSTRY IN INDIA
The cotton textile industry is reeling under manifold problems. The
major problems are the following:Sickness:
Sickness is widespread in the cotton textile industry. After the
engineering industry, the cotton textile industry has the highest
incidence of sickness. As many as 125 sick units have been taken over
by the Central Government. Sickness is caused by various reasons like
the problems mentioned below.
Obsolescence:The plant and machinery and technology employed by a number
of units are obsolete. The need today is to make the industry
technologically up-to-date rather than expand capacity as such. This
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need was foreseen quite some time back and schemes for
modernisation of textile industry had been introduced. The soft loan
scheme was introduced a few years back and some units were able to
take advantage of the scheme and modernise their equipment.
Government Regulations:Government regulations like the obligation to produced
controlled cloth are against the interest of the industry. During the last
two decades the excessive regulations exercised by the government on
the mill sector has promoted inefficiency in both production and
management. This has also resulted in a colossal waste of raw
materials and productive facilities. For example, the mills are not
allowed to use filament yarn in warp in order to protect the interest of
art silk and power loom sector which use this yarn to cater to the
affluent section of society.
Low Yield and Fluctuation of Cotton Output:
The cotton yield per hectare of land is very low in India. This
results in high cost and price. Being largely dependent on the climatic
factors, the total raw cotton production is subject to wide fluctuation
causing serious problems for the mills in respect of the supply of the
raw material.
Competition from Manmade Fibers
One of the serious challenges facing the cotton textile industry is
the competition from the man-made fibres and synthetics. These textures
are gradually replacing cotton textiles. This substitution has in fact been
supported by a number of people on the ground that it is not possible to
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increase substantially the raw cotton production without affecting other
crops.
Competition from other Countries:In the international market, India has been facing severe
competition from other countries like Taiwan, South Korea, China and
Japan. The high cost of production of the Indian industry is a serious
adverse factor.
Labour Problems:The cotton textile industry is frequently plagued by labour problems.
The very long strike of the textile workers of Bombay caused losses
amounting to millions of rupees not only to the workers and industry but
also to the nation in terms of excise and other taxes and exports.
2.5. Strengths of Indian textile Industry
India has rich resources of raw materials of textile industry. It is one ofthe largest producers of cotton in the world and is also rich in resources of
fibres like polyester, silk, viscose etc.
India is rich in highly trained manpower. The country has a hugeadvantage due to lower wage rates. Because of low labour rates the
manufacturing cost in textile automatically comes down to very
reasonable rates.
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India is highly competitive in spinning sector and has presence in almostall processes of the value chain.
Indian garment industry is very diverse in size, manufacturing facility,type of apparel produced, quantity and quality of output, cost,
requirement for fabric etc. It comprises suppliers of ready-made
garments for both, domestic or export markets.
2.6. Weaknesses of Indian textile Industry
Indian textile industry is highly fragmented in industry structure, and isled 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, led substantial fragmentation that
distorted the competitiveness of industry. Smaller companies do not
have the fiscal resources to enhance technology or invest in the high-
end engineering of processes. Hence they lose in productivity.
Indian labour laws are relatively unfavourable to the trades and there isan urgent need for labour reforms in India.
India seriously lacks in trade pact memberships, which leads torestricted access to the other major markets.
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2.7. COTTON TEXTILE INDUSTRY IN KERALA
The textile industry in Kerala is the oldest and occupies a key
position in the state economic development. In Kerala there are about
24 cotton textile mills (excluding NTC). The earliest known registered
factory is the Malabar Spinning & Weaving Company at Ponnanikara
in Calicut started in 1884. The second important textile unit set up in
the state was Quilon Spinning Mills. The Kerala State Textile
Corporation was incorporated in 1972 with the objective of promoting
textile industry and assisting sick mills.
Though Kerala has a number of cotton textile mills, the raw
materials i.e. cotton is not widely cultivated here. It is either obtained
from other states or imported from outside India. The climatic
condition of Kerala frequently changes, so suitable arrangements are
made in factories to maintain the desired atmospheric condition for the
production of yarn. A large number of people get direct employment in
the mills and ever a large number get indirect employment. More than
20,000 workers are working in different cotton textile mills in Kerala.
Textile Industries in Kerala also suffers from many problems. As
stated before, high power cost, high raw material cost, low technology
etc are all applicable to textile mills in Kerala. Another major problem
is in terms of modernization. This may be viewed from two aspects.
1. Insufficiency of funds for modernization.
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2. Modernization may involve installation of modern machineries whichmay bring about a reduction in employment opportunities.
Last, but not the least, the labour problems makes Kerala, the least
preferred place for any industry.
In Kerala, there are 31 established textile mills and out of that 17
mills are owned by central and state government, and balance is private
owned mills. Out of that 7 mills are situated in Thrissur district. Those
mills are as follows:-
A. Kerala Lakshmi Textiles LtdB. Vanaja Textiles LtdC. Sitaram Textiles LtdD. Rajagopal Textiles LtdE. Co-Operative Spinning Mills LtdF. Thanikkudam Bhagavathi Spinning Mills LtdG. Alagappa Textiles Ltd
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2.8. COMPANY PROFILE
2.9. National Textile Corporation (NTC)
The National Textile Corporation Limited (NTC) is a Central
Public Sector Enterprise under the Ministry of Textiles which was
incorporated in April 1968 for managing the affairs of sick textile
undertakings, in the private sector, taken over by the Government.
Starting with 16 mills in 1968, this number gradually rose to 103 by
1972-73.In the year 1974 all these units were nationalized under the
Sick Textile Undertaking (Nationalization) Act 1974. The number of
units increased to 119 by 1995. These 119 mills were controlled by
NTC(HC)Ltd with the help of 9 subsidiary Corporations, with an
authorized capital of Rs 10 crores which was raised from time to time
and which is now Rs 5000 crores and the paid up share capital of the
corporation is Rs 3062.16 crores as on 31.03.2008.
Vision
TO BE A WORLD CLASS ECO-FRIENDLY INTEGRATED
TEXTILE COMPANY, TRANSFORMING INTO A
HOUSEHOLD NAME THROUGH INNOVATIVE IDEAS AND
TECHNOLOGY
Mission
BRAND TO BE THE NATIONS CLOTHIER,
BE A NATIONAL PLAYER PROVIDING
1. CLOTHING SOLUTIONS TO NATIONS MASSES.2. OPPORTUNITY FOR THE NATIONS PEOPLE TO IDENTIFY
THEMSELVES WITH A NATIONAL.
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The Headquarters of the holding company is at New Delhi. The
strength of the group is around 22000 employees. The annual turnover
of the Company in the year 2004-05 was approximately Rs. 638 Crores
having capacity of 11 lakhs Spindles, 1500 looms producing 450 Lakh
Kgs. of yarn and 185 lakhs Metres of cloth annually.
In the implementation of the Revival Scheme sanctioned for NTC
mills, Government has decided to modernize 22 mills by itself through
generation of funds from the sale of its surplus assets .The remaining
30 mills requiring heavy dose of modernization, for which NTC did not
have adequate resources for modernization after meeting the cost of
servicing the Bonds raised and also to quicken the modernization
process, private partnership through joint venture was explored for 18
mills.
NTC expects to complete modernization of its 22 mills by itself
up to spinning activity by March, 2009. Purchase Orders for new
machinery have been placed. So far, an amount of Rs.430.00 croreshave been spent on purchase of new machinery and renovation of
existing working machines, buildings, humidification and
electrification etc.
Amongst 22 mills, 4 mills will be modernized by relocation and as
a Green Field Project including Udaipur Cotton Mills proposed to be
modernized to produce technical textiles (Geo-textiles)
After modernization, NTC is projected to produce 600 lakh Kgs. of
yarn and 250 lakh Metres of cloth annually with a turnover of more
than Rs.931 crores in the year 2009-10.
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Central-owned National Textile Corporation (NTC) has announced
that its three new mills in the states of Karnataka, Maharashtra and
Gujarat will start functioning in next three to six months. Establishment
cost of these three mills is estimated at Rs.6.5 billion. These mills are
being established at Achalpur in Maharastra, Hassan in Karnataka and
Ahmedabad in Gujarat. These three mills would have a combined a
capacity of 132,000 spindles.
It has been expected that by the year 2014 that the total turnover
of the company would go up to Rs.20.14 billion as an ambitious plan
has been chalked out to fetch that amount of business. Last year, the
annual turnover of NTC was Rs.4.8 billion, which will increase up to
Rs.5.5 billion this year.
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Through its 9 subsidiaries the companies under NTC has spread all
over India.
Sl.
No.
SubsidiaryNo of Mills
Head
Office
1 NTC (Andhra Pradesh,
Karnataka, Kerala &Mahi) Ltd
16 Bangalore
2 NTC ( Delhi, Punjab,
Rajasthan ) Ltd
9 New Delhi
3 NTC ( Gujarat ) Ltd 10 Ahmadabad
4 NTC ( Madhya Pradesh
) Ltd
10 Indore
5 NTC (North
aharashtra ) Ltd
13 Mumbai
6 NTC(South
Maharashtra ) Ltd
11 Mumbai
7 NTC ( Tamilnadu &
Pondichery )Ltd
17 Coimbatore
8 NTC ( Uttar Pradesh )
Ltd
11 Kanpur
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There are 15 mills under the control of the NTC (A.P, K, K & M) limited at
present. They are as follows:-
1) Minerva Mills2) Netha Spinning Mills3) Nataraj Spinning and Weaving Mills4) Sree Yellamma Cotton, Woollen & Silk Mills5) M.S.I.K Mills6) Adoni Cotton Mills7) Ananathpur Cotton Mills8) Mysore Spinning & Weaving Mills9) Azam Jahi Mills10)Thirupathy Cotton Mills11)Alagappa Textiles12)Vijaya Mohini Mills13)Cannore Spinning & Weaving Mills14)Kerala Lakshmi Mills15)Parvathy Mills
9 NTC (West Bengal,
Bihar & Orissa) Ltd
21 Kolkata
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2.10. KERALA LAKSHMI MILLS - PULLAZHI
Kerala Lakshmi Mills is a Govt. Company under public sector.
It is situated at Pullazhi in Thrissur District. The mill was promoted by
Late. Shri. Karimuthu Thyagaraja Chettiar and it was incorporated in
1961. The production was commenced in 1963 with an installed
capacity of 24000 spindles. The capacity was raised to 30960 spindles
subsequently.
Due to financial and management problems, during the year
1974 the mill was Nationalized by Govt. of India under sick textile
Undertaking Act 1974.The management of the mill is vested with the
National Textile Corporation Ltd. New Delhi (A govt. of India
undertaking) and later with effect from 01/04/1974 it was transferred to
its subsidiary company National Textile Corporation (Andra Pradesh,
Karnataka, Kerala & Mahe) limited Bangalore.
After Nationalization consequent to the implementation of
modernization/ expansion scheme the installed capacity was raised to
41328 spindles by 1985. Presently the mill is manufacturing blended
yarn in the following counts such as 45sPV, 60sPC, 62sPC. The main
raw material Polyester is procured from M/s Reliance Industry Ltd, and
M/s Indo Rama Synthesis Ltd and Viscose Fibre from M/s Grasim
Industries Ltd, Coimbatore. The raw cotton is mainly purchased from
Cotton Corporation of India.
LOCATION
The mill is situated at Pullazhi about 5 Km from Thrissur town.
CAPACITY
The licensed capacity of the mill is 41,520 spindles. The
installed and commissioned capacity of the mills is 41,328.
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REGISTERED OFFICE
National Textile Corporation 9 AP, K, K & M Ltd, 3rd
floor,
Nanjappa Mansion, 29/ KH Road, Shanthinagar, Bangalore
56002795.
SHARE CAPITAL
The mills share holding of Rs. 114.46 lakhs is contributed by the
subsidiary corporation NTC by way of Equity Share Capital.
2.11. FINANCIAL POSITION
Now the mill is on the way to profit and a long term expansion
is in a start. It is about 20 crores as a whole for the overall expansion;
all the old machineries will be replaced by the modern and high
production type machinery. The modernization will be full filled with
in one year. After the modernization the cost of production may
decrease around 20 to 25% because of the modern machinery.
ORGANIZATION AND MANAGEMENT
The management of Kerala Lakshmi mills is vested in NTC Ltd
Bangalore which is the head office of the mills. The holding company
of the mill and its head office is NTC Ltd, New Delhi.
2.12. ADMINISTRATION
The chief of the organization is the General Manager who is a
technically qualified person who is having sound knowledge and
valuable experience in running many textile mills. The persons
managing the various departments working under him are also
personnel qualified in their respective fields such as financial
management, production management and engineering. They are
seniour personnel backed by long years of experience in textile work.
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The Kerala Lakshmi Mills is a unit of NTC Ltd. It is a spinning
mill. The company is engaged only in the manufacturing of yarn
product. Cotton is the main raw material used for the production. The
raw materials are supplied by the head office directly and also the sales
of the final product are also done by the head office itself. The cotton is
purchased in terms of bale. One bale contains 18 Kg of cotton.
2.13. PRODUCT PROFILE
The Kerala Lakshmi Mills is a unit of NTC Ltd. It is a spinning
mill. The company is engaged only in the manufacturing of yarn
product. Cotton is the main raw material used for the production. The
cotton is purchased in bale.
2.14. TYPES OF RAWMATERIALS
There are three kinds of raw materials used by the organization.
They are as follows.
Cotton Polyester Staple Fibre (PSF+ Cotton) Viscose Staple Fibre (VSF + Cotton)
2.15. MAJOR SUPPLIERS OF INPUTS
Name of Inputs Name of Suppliers
1. Cotton Grasim Industries,Kumarapatanam,
Hareri District, Karnataka.
2. Polyester Staple Fibre Reliance industries Ltd.J.R. Foods Ltd
Campus. Thirubhuvani.
Puducheri.
3. Viscose Staple Fibre Indo Rama SyntheticPrivate Ltd
Nagpur.
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2.16. TYPES OF PRODUCT
The product of the company is textile yarn. Presently the mill ismanufacturing blended yarn in the following counts such as 45sPV,
60sPC, 62sPC. The produced yarn is marketed through the market
divisions to the consumers in various markets. At present the products
are consumed in the Weaving units, Bombay. The quality of the yarn
supplied by the company is comparable to International standards.
However dew to fluctuation in the market price the company is not
able to realize competitive rates.
The textile mill is also affected due to the import of fabrics as a
result of Globalization. Further, due to the monitory and economic
recession the South Asian exporters turn to domestic yarn market,
thereby creating get in domestic yarn market and steep trope in selling
price. The shortage of working capital and the power supply also
affected the performance of the company.
Table showing the count of yarn producing and the ratio of raw
material consumed
COUNT RATIO
62P/C 75:25
60P/C 80:20
45P/C 55:45
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3.1 ORGANIZATION STRUCTURE OF THE KERALA LAKSHMI
MILLS
GENERAL MANAGER
FINANCE MANAGERSPINNING MANAGER PERSONNEL MANAGER
ASM DSM ASM
S C
STORE -
KEEPER
CLERK SUPERV-
ISOR
INVESTI-
GATOR
ASST. STORE
KEEPER
SALES
IN
CHARG
COST
A/C
CASHIE
R
CHIEF
A/C
PURCHASE
OFFICER
HEAD TIME
KEEPER
SECURITY
OFFICER
SENIOUR
TIME
KEEPER
SECURITY
GUARDS
E.S.I- P.F
CLERK
PRODUCTION
CLERK
WAGE CLERKCLERKS
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The main functional areas of the organization are
Production Department. Quality Control Department Personnel Department. Finance Department. Marketing Department.
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4.1. PRODUCTION DEPARTMENT
Production concepts are one of the oldest concepts in marketing.
Production concepts hold that consumers will favour those products
that are widely available and at low cost.
The assumption that consumers are primarily interested in product
availability and low price holds in at last two situations. The first is ,
where the demand for a product exceeds supply in developing then in
its fine points, and supplies will concentrate on finding ways to
increase production. Second situation is where the products with high
cost and has to be decreased to expand the market.
MEANING
Production is the functional area responsible for turning inputs
into finished outputs through a series of production processes. The
Production Manager is responsible for making sure that raw materials
are provided and made into finished goods effectively. He or she must
make sure that work is carried out smoothly, and must supervise
procedures for making work more efficient and more enjoyable.
Production, in economics, all those activities that have to do with
the creation of commodities, by imparting to raw materials utility,
added value, or the ability to satisfy human wants. Production is
concerned with the conversion of inputs (raw materials, machinery,
information, man power and other factors of production) into output
(semi- finished goods and service) with the help of certain processes
(planning, scheduling and controlling etc).
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DEFINITION
According to Elwood. S. Buffa Production Management deals with
the decision making related to production process, so that the resulting
goods and services are produced according to specification in amounts
and by the schedule demand and at minimum cost.
SCOPE OF PRODUCTION
Earlier periods there was no mechanization of production system
like the one they have now. It was too old tradition compared to this
new millennium. The process of mechanization was slowly improved
step by step.
STRUCTURE OF PRODUCTION DEPARTMENT
SPINNING MANAGER
ASM DY.SPINNING
MANAGER
ASM (SQC) STORE KEEPER
CLERK SUPERVISORS INVESTIGATORS ASST. STORE
KEEPER
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FUNCTIONS OF PRODUCTION MANAGERS
The various functions of production manager in the company
are:-
Production Planning Quality Control Inventory Control Work Measurement Production Control Method of Analysis Plant Layout Material Handling Design and Technical Support
DETAILS OF RAW MATERIALS
A. Type of Raw Material.
There are three kinds of raw materials used by the organization. They
are as follows.
a) Cottonb) Polyester Staple Fibre (Psf + Cotton)c) Viscose Staple Fibre ( Vsf + Cotton )
B. Quantity and Price of Raw materials.
The quantity of raw materials is based on the bales. The bales of
above three different raw materials are in three different quantities and
prices. They are shown in table below.
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i. Quantity and Price of Raw material :
Name Quantity per bale Price
Cotton 170 Kg Rs 46 to 56
Polyester
Staple Fibre
380 Kgs to
466 Kgs
Rs 70
Viscose
Staple Fibre
250 Kgs to
252 Kgs
Rs 74
ii. Raw Material Consumption per day :
a. Cotton : 10 Balesb. PsF : 12 Balesc. VsF : 3 Bales
iii. Number Of Machines
a. Mixing : No machineb. Blow room : 2c. Carding : 50d. Drawing : 10e. Simplex : 13f. Ring Frame : 96g. Winding : 12h. Packing : No machine
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PRODUCTION PROCESS
MIXING
BLOW ROOM
CARDING
DRAWING
SIMPLEX
SPINNING
WINDING
PACKAGING
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PRODUCTION PROCESS
A. MIXING
Mixing is the process of combining different varieties of cotton in
order to prepare the desired quantity and to produce the yarn of
expected quality at an expected price. Cotton is of different quality and
variety as it is purchased from different states.
Mixing is done in order to bring uniformity in the quality of raw
cotton and humidity etc. The proportion of different varieties of cotton
to be mixed is decided in order to produce the desired count. After
hand mixing the bale feeding is done. Cotton is passed through
different process for cleaning. It is the process of opening and cleaning
and is known as blow room process.
B. BLOW ROOM
It is one of the primary activities of the production process. Here
cotton is brought down to in proper cotton. There are five hating points
in the blow room. The impurities in which cotton are made loose and
they are rolled in sheets of 40 meters. Each meter roll is called a ball or
lops. They are transferred to the carding department.
C. CARDING
In this process parallelization, cleaning and drafting is done. This is a
process of Individualization, which means that material is separatedfrom fiber and the resultant product is called the silver, which is used
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in next process. There is further removal of water about 5% of the lap
weight. Hence the carding can be considered as the most important
process of cleaning section.
D. DRAWING
In this process the uniformity of silver is increased. Hence the eight
carded silver is converted into one silver. This is a common process for
both carded yarn and combined yarn. Blending parallelization and
drafting of the carded / combined silver is carried out in this stage. To
maintain the court constant the length of the resulting silver is
increased using drafting in which the delivery rollers rotate faster than
the previous rollers. This will result in the extension of silver. In the
process the combined or carded silver is converted to draws from
silver.
E. ROWING
Silver from the draw flame are generally to course in lank number
for immediate presentation to the spinning frame for drafting and
twisting in to yarn. There for the silver is subjected to one or more
drafting process before being erected to the spinning frame. But any
reduction in the lank of silver would make it so weak and difficult for
handling. Hence a certain amount of twist is inserted and wounded
bobbins for further processing. The output of this process is known as
fly frame, rowing frames and speeders.
F. SPINNING. The number of machines in this process is 114. The machines work
continuously and automatically for the length of time needed to
produce a full bobbin of yarn, after which these bobbins are removed
and the machine is set to make another set of bobbins. The capacity of
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the mills expressed the term of number of spindles. The capacity of the
mill is limited to 49,532 spindles.
G. DOUBLINGDoubling signifies the twisting together of 600 or more strands of
single yarn in to a simple or compound form for the purpose of making
sewing threads, lace, embroidery yarn, hosiery yarn, netting yarn, special
purpose yarn and fancy yarn. The doubled or folder yarn thus produced
has greater strength, elasticity and smoothness than a single thread ofequal count.
H. WINDINGThe yarn produced from the spinning process is wounded on a
cone by using winding machine. The tests are done is cone winding stage.
The spinning process is repeated along with winding and rewinding
breakage study. The output of the process is the corn yarn.
I. REELINGPrior to the weaving operations, the yarn is reeled into links of convenient
is usually reeled so that firm consolidated package can be obtained their
by minimizing transport charges. The reeling operation consists of
winding the yarn of swifts as they are technically termed having a
circumference of 54 inches.
J. PACKING
The output of the production process is in the form of cone yarn by
corn winding and hank yarn by reeling. It is packed in bale or board which
contains 180 Kg. 120 yarns are equal to one lea and 7 leas are equal to one
hank. The production is of various counts
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PROCESS OF MANUFACTURE
Cotton
Cotton bales are opened and mixed in blow room. The mixing is
processed through blow room to clean the cotton and converted in laps.
The lap is processed in carding to remove short fibers, to clean the
cotton laps further and also to reuse the lap to card silver form.
The card silver is processed in drawing for parallelizing the fibers
and to get an even silver. The drawing silver is processed through
simplex machine and made in to roving. The required twist is also
imparted in the roving.
The roving obtained from simplex is fed on to ring frame when the
desired count is obtained after giving required draft and importing
necessary twist required getting sufficient strength.
The yarn obtained as above on the form of cops is fed to cone
winding machine to obtain around 1.25 kg weights in the form of
cones. The cones are packed in HDPE bags to get a net weight of 50 kg
each.
Polyester Cotton Blend
Here the process is identical as above expect mixing of polyester and
cotton silver from carding section are mined and processed from blow
room to cone winding section just like cotton to get the blend
proportion 80:20 in the final yarn and the packed in HDPE bags of 50
Kg each.
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a) Polyester ViscoseHere the required proportions of polyester 55% and Viscose fiber
45% are mixing with a separate tin for identification. The rest of the
processing is one just like that of cotton yard and packed in to HDPE
bags each net.
b) Staple FiberLike cotton this is processed expect a mixing stage where anti
static agent is also avoided.
4.2. QUALITY CONTROL DEPARTMENT
This function assumes development, maintenance and improvement
of tasks and procedures of QC management, QC policy and also
quality control over various projects, production, selling and other
activity. Certified procedures and guides are the basic documentation
of QC management system. After all required documentation for
development of QC policy has been combined which is confirmed, for
example, with Standard MS ISO 9001, the quality control will be
performed with reference to and in accordance with the collected
documentation.
FUNCTIONS
Evaluation of quality level. These evaluations are conducted bymeans of the original or adopted techniques at the enterprise, in its
divisions, branches. The evaluations can be practical and numerical.
The first one is conducted on production meetings of experts by means
of discussion of certain lines of business procedures and operations at
the enterprise. Numerical evaluation is settled up mainly on the basis of
model Total Quality Management (TQM).
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Internal and external audit. This function assumes internal andexternal audit of the quality management system and quality assurance
in divisions and enterprise services. It is possible to tell that this is the
most important function. It is a feedback of quality control system. It is
a point that distinguishes a modern quality management based on
Standard MS ISO 9000 and TQM from all previous models.
Documentation. The function is aimed to create and keep documentson the projects for formalizing task and processes, keeping statistics
and getting lessons learnt. The enterprise can quickly get valued
information and use it to make correction to ongoing activity and
improve quality management.
Quality Control Department Chart
In SQC the count, strength, unevenness %, thin, thick, neps, etc are
usually checked.
Here 3 counts are produced 62pc. 60 pc & 45 pc.
Wrap reel (counting machine) 120 yards.
Uster (unevenness, thin, thick, neps) checking machine.
Lees strength tester (the strength is checked).
In this department investigators are working under the
supervision of manager of quality control.
QUALITY CONTROL
MANAGER
INVESTIGATOR INVESTIGATOR INVESTIGATOR
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4.3. PERSONNEL DEPARTMENT (H.R.DEPARTMENT)
The human resource department is devoted to providing effective
policies, procedures, and people-friendly guidelines and support within
companies.
The most common Human Resource jobs that are grouped in the
Human Resource Department are the Human Resources Director,
Human Resources Generalist, and Human Resources Assistant.Additionally, some organizations have a Vice President of Human
Resources and employees who are organized around providing a
specific component of Human Resource services including
compensation, training, organization development, and safety.
So in order to handle precious human resources Kerala Lakshmi
Mills is maintaining a Personnel department. Total strength of the mills
is 692. It includes 345 permanent employees, 220 Gate badalies, and
also trainees, koolies etc. The main functioning of the mill and
maximum efficiency is connected with temporary workers. Workers
can be divided into two categories, i.e. skilled workers and unskilled
workers.
SKILLED WORKERS
In this group it consists of workers who engaged in the
maintenance win, electrical section, work shop etc. This people will be
trained well in their respective departments.
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UNSKILLED WORKERS
The operating workers who engaged for machine operation are
unskilled i.e. in different department, they are engaging after a
particular training section. Regarding the staff strength of the mill staff
can be divided into three categories i.e. managerial staff, technical staff
and clerical staff. In Kerala Lakshmi Mill personnel department is
classified into 3 sections.
1. Industrial Relation.
This section concerned with maintaining a good relationship
with management and workers and to act as the role of a regulatory
mechanism in resolving any industrial disputes in the firm.
2. Establishment
This section handles recruitment, placement and severance of
employees. The main functions are:
Taking timely action on redressed employees grievances.
Maintenance of SC/ST/OBC quota for recruitment and promotion asper government directives.
Originating proposal of employees in their new position.
Fixation of salary.
Processing of accident leaves.
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3. Trading and Industrial Development
The main functions of this section are:
Manpower planning.
Maintenance of scheduling incentives.
Apprentice training.
Structure of Personnel Department
PERSONNEL
MANAGER
HEAD TIME
KEEPER
SECURITY
OFFICER
SENIOR TIME
KEEPER
SECURITY
GUARDS
ESI, PF
CLERK
PRODUCTION
CLERK
WAGE
CLERK
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WORK TIMINGS
The company works on all days in the week. The company
works for 24 hours in 3 shifts. The time of the 3 shifts and general
shifts will be as follows.
General Shifts - 7 am to 3.30 pm
1st shift - 7 am to 3.00 pm
2nd shift - 3.00pm to 11.00 pm
3rd shift - 11 pm to 7 am
The office staff will works from Monday to Saturday and their work
timing is 9.30am to 5.00 pm.
DEFINITION
According to Edward Flippo Personnel Management is the
planning, organizing, directing and controlling of the procurement,
development, compensation, integration, maintenance and separation
of human resources to the end that individual, organizational andsocietal objectives are accomplishes.
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FUNCTIONS
1. Recruitment.
Recruitment forms the best stage in the process, which continues
with selection and ceases with the placement of the candidate.
Recruiting is the discovering of the potential applicants for actual or
anticipated organizational vacancies.
KERALA LAKSHMI MILLS Ltd has its own policy for
recruitment. It makes use of both internal and external sources for
recruiting its personnel. Advertising in news papers and magazine is
the most commonly used method of recruiting. It also recruits from
among its existing employees. Whenever any vacancy occurs
somebody from within the organization is upgraded, transferred,
promoted, or sometimes demoted. Minimum qualification required forselection is 10th standard pass. Recruitment of workers is done on the
basis of skill test and physical test. Then an interview and later a final
interview are conducted.
The worker who is selected at first is selected as learner, after 6
months he/she is promoted as senior learner. If the wok of senior
learner is up to standard he is appointed as the permanent employee of
the organization.
In staff recruitment, interviews are conducted by heads of
respective departments. Then they join as trainee and are required to
submit a training report to head of respective department.
2. Salaries & WagesPersonnel department makes decision on salaries and wages.
These are calculated per month for each employee keeping into
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consideration the attendance. Employees are paid differently during
training period.
3. Attendance ProcedureFor managerial staff, duty timings are 10am to 5 pm about which
they are very particular. Even if a staff member is 5 minutes late in the
morning without any specific reason, he is marked for half-day leave.
Workers are doing their work in three shifts of 8 hours each. The staff
of each employee goes on changing every month. Records of all this
are maintained by the personnel department.
4. Provident fund SchemeIn 1932 P.F. Act has been introduced with a view of providing
maintenance to the family of the employee after his retirement or
death. This act is applicable at Kerala Lakshmi Mills Ltd. In P.F
scheme employee has to contribute 12% of his salary and management
has to contribute the same proposition to the employees share. Anemployee is eligible for taking loan from P.F, but certain exemptions
are there. During the time of his retirement he and his family members
are eligible for that amount.
5. ESI SchemeThe main objective of Employees State Insurance Scheme is
employee welfare. It comes under the provision of Employees State
Insurance Act 1948. Employees are benefited, especially in case of
accident or death. The employee has to contribute 1.5% of his salary
and company 4% ESI to avail the benefit.
6. Grievance Handling Procedure
A grievance is nay dissatisfaction whether expressed or not,
whether valid or not, arising out of anything connected with thecompany, which an employee thinks, believes of even feels to be
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unfair. In Kerala Lakshmi Mills Ltd if workers have any problem they
can immediately report to the supervisor. If it cannot be solved at this
level they can directly report to head of respective department or to the
General Manager.
7. Trade UnionA trade union is any combination of persons whether temporary
or permanent, primarily for the purpose regulating the relations
between workers and employees or between workers & workers for
imposing restrictive conditions on the conduct of any trade or business
and includes the federation of two or more trade unions. In Kerala
Lakshmi Mills Ltd main trade unions are INTUC and CITU. These
trade unions are creating such an environment in the organization,
which maintains good relationship between workers & management.
8. Salaries & PerksIt is the Personnel department that is dealing with calculating of
Salaries & Perk. The various perks which are provided by the company
to its employees are:
HRA ( House Rent Allowance) LTA ( Leave Travelling Allowance) Subsidized food & Canteen facilities. Employees Welfare Fund Employees Children Education Allowance Personnel accident insurance scheme. Loan for house building Employees State Insurance (ESI)- 6% of salary- i.e. 1.5% given by
employee himself and 4.5% of salary given by Organization.
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9. Leave Rules
Casual Leaves- 10 days per yearMore than 3 casual leaves at a time or in a month are not allowed.
Casual leaves will be lapsed if not utilized.
Sick LeaveSick leaves can only be obtained after 6 months of recruitment. To
avail the benefits under these scheme employees should submit
medical certificate.
10.Advance & LoansPersonnel Department takes care of decisions regarding
advance and Loans. Advances are given according to the requirements
of the customers.
SECURITY DEPARTMENT
This department is responsible for the security of the entire
company. Their main duty is at the main gate of the factory premises
from where all the goods enter or leave the company. The security
department is maintaining the following registers:
I. Inward register for Incoming material
It contains information about date, item, quantity, and place
from where it is coming, bill number, medium of transport, vehicle
number etc. The concerned person is allowed to enter the factory
premises along with material that they are bringing. A stamp is put on
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the bill that they are bringing. Stamp contains information regarding
date, entry number etc, then the concerned person goes to the store and
from there he goes to the accounts department where the payment is
done after confirming the stamp.
II. Outward Register- for outgoing Staff
In this register quantity, date and time of dispatching the
material is recorded. The concerned authority checks quantity
mentioned in the gate pass.
III. Visitors Register
Visitors register is maintained to record the name of the person
coming, his purpose of visit, whom he wants to meet etc. His time of
arrival and the time at which he is leaving the company etc will also be
recorded in this register.
IV. Vehicle Incoming / Outgoing Register
This register is maintained to have a record of vehicles coming
and going out of the company. Visitors are not allowed to park their
vehicles along with the vehicles of employees. Separate arrangements
are made for parking the vehicles of both employees and visitors.
V. Guards Duty RegisterIt contains details of daily duties of guards in shift wise. The
security department will also have the 3 shifts that are performed in the
organization. The shift changing time of security staff will be half an
hour before the ordinary shift timing of the workers.
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4.4. FINANCE DEPARTMENT
In the modern business society finance functions are drawing
increasingly more and more attention of all those who are responsible
for running financial administration. There is always a problem with
every organization for managing its expanding and ambitious plans
with financial resources
The objective of analysing the financial statements and account
is that the books of accounts provide are true and fair view of the
affairs of the financial position of the company. The financial
department includes Accounts Manager, Chief Accountants, Assistant
accountants and cashier. If the financial department of the company is
accurate and efficient, it provides a smooth working flow to the
company.
DEFINITION:
Finance department is defined as simply the task of providing
funds needed by the enterprise on the terms that are most favourable to
it keeping in view its objectives.
According to F.W. Paish Finance may be defined as, in modern
money using economy finance may be defined as the provision of
money at the time it is wanted.
NATURE AND SCOPE OF FINANCIAL
MANAGEMENT
Nature of financial management refers to its functions and scope
of its objectives. The scope and coverage of the financial management
have gone fundamental changes. In the early years of its evaluation it
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was regarded as a branch of economics relating to the raise of funds,
but now, in the current literature pertaining to the growing disciplines,
financial management is treated as a management activity.
This is concerned with the planning and controlling of the firms
financial resources as a separate activity or discipline. The finance in
the modern business world is the life blood of the business economy.
We cannot imagine a business without finance because it is central
point of all business activities.
MAIN APPLICATIONS
1) Payroll System2) Processing of Input from payroll department and payroll calculations.3) Banks advise statement preparation.4) Preparation of overtime hours statement and man hour statement.5) Preparation of earning and deduction summaries.6) Monthly non managerial increment processing.7) Automatic payroll journal generation for payroll accounting.8) Pension computation.9) Estate information report.10)Preparation of half yearly and yearly statement of pension details.11)Insurance scheme.12)Generating gratuity data for actuarial.13)Yearly performance incentive computation for mill staff.14)Contract employee.15)Monthly and half yearly statement.16)Provident Fund application.17)Loan request processing.18)Members balance statement preparation.19)Monthly contribution statement preparation.20)PF. Annual Ledger preparation.
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METHOD OF ACCOUNTING
1) Preparation of monthly journal, ledger and trial balance.2) Preparation of half yearly consolidation of ledger.3) Link Schedule preparation.4) Profit and Loss account preparation.5) Balance sheet preparation.
ASSET ACCOUNTING
1) Account the asset of the organization and calculate the depreciation forthe year.
2) Processing of the transfer of the shares.3) Preparing proxy form for AGM.4) Issue of dividend, warrant etc.
FINANCIAL DEPARTMENT CHART
FINANCE
MANAGER
SALES IN
CHARGE
COST
ACCOUNTANT
CASHIER CHIEF
A/C
PURCHASE
OFFICER
CLERKS CLERKS CLERKS CLERKS
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The finance department is broadly classified into internal audit
department and finance and accounts department. Under the internal
audit section, there is a technical audit and another which is headed by
auditor. Under the finance and accounts section, there is five sub
sections. These sections are sales in charge, coast accountant, cashier,
chief accountant and purchase officer.
SYSTEM OF ACCOUNTING
Computerization is not yet completed in the mill. Few years
before it was difficult to keep and maintain records and files in the
mill. Now the computerization of the mills is going on. So in future all
the files and records can be easily handed in the mill.
AUDITING SYSTEM
The mill conducts 4 types of auditing. They are:-
Internal audit conducted by NTC Bangalore. Statutory audit conducted by chartered accountants. Auditing by AGs office. ( Govt Of India) Central excise duty.
TAX SECTION
There is a particular department responsible for tax accounting
under the finance department. This department is concerned with the
accounting of taxes in the following ways
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Sales Tax
CST (Out of Kerala) - 3%
KGST (VAT) - 4%
Service tax - 2.3%
Education cess - 2 % of service tax.
No excise duty
Income Tax
Income Tax1.03 %
Monthly remittance of tax.
CREDITORS PAYMENT SECTION
Sales of yarn are made as far as possible against cash/ DD.
However when credit becomes inevitable due to market or seasonal
requirement credit is given up to 30 days from the date of supply is
available to dealer against acceptable of security/ selective credit for all
products. The credit periods are decided by management to meet
contingencies.
CASH SECTION
Cash section includes a cashier, junior clerk, senior clerk and a
petty cashier. Petty cashier is responsible for recording petty expenses
and it is under impressed system. Cash section is included cash book,
day book and inwards and outwards book.
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4.5. MARKETING DEPARTMENT
DEFINITION:
The Chartered Institute of Marketing define marketing as The
management process responsible for identifying, anticipating and
satisfying customer requirements profitably.
In the words of Philip Kotler, marketing means Satisfying needs
and wants through an exchange process.
Marketing is means a social and managerial process by which
individuals and groups obtain what they need and want through
creating and exchanging products and value with others.
MARKETING CONCEPT
The marketing concept is the philosophy that firms should analyze
the needs of their customers and then make decisions to satisfy those
needs, better than the competition. Today most firms have accepted the
marketing concept, but this has not always been the case.
When firms first began to adopt the marketing concept, they
typically set- up separate marketing departments whose objective it
was to satisfy customer needs. Often these departments were sales
departments with expanded responsibilities. While this expanded sales
department structure can be found in some companies today, many
firms have structured themselves into marketing organizations having a
company wide customer focus. Since the organization excist to satisfy
customer needs, nobody can neglect a customer issue by declaring it a
marketing problem everybody must be concerned with customer
satisfaction.
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Marketing Concept: Determine Consumer Needs/Wants and fill thembetter than anyone else, at a profit.
The Consumer is thus the starting point.
Marketing starts with consumer needs.
STRUCTURE OF MARKETING DEPARTMENT
The company is having market department at Head Office
headed by general manager of marketing. Marketing information is
collected from various depots through local representatives and
analysis will do at market departments. The company having yarn basis
sales committee at head office headed by one of the full time general
manager of marketing also by general manager technical and other
general managers from different mills.
The committee will review the marketing information and find
the product and prices of different count of yarn. The allotment of yarn
bags in various depots are accepted on weekly basis. The mill will be
GENERAL MANAGER
MARKETING
GENARAL
MANAGER
MARKETING STAFF OF
VARIOUS
DEPARTMENT AGENTS
DEPOT KEEPERS
(CONSIGNED
AGENTS)
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sending the yarn to the godown in the respective count and the
consignment agent selling the yarn to retailers at market senders such
as Harendi, Megoan etc. After the receipt of the goods the depot
keepers remitting the sale proceeds to mills.
The channel of distribution is being carried out the consignment
agents. The yarn products are developed according to the demand
received from the above market senders. The major product of the
mills are 62s PC yarn, 60 PC yarn and 45 PVC yarn. The mill is having
testing lab to looks into the quality of the product.
CHANNELS OF DISTRIBUTION
Channel of distribution means the path or network or the pipe
line through which the products are made available to the consumers,
providing time and place utility.
In the words on Philip Kotler, Channel is a set of
independent organizations involved in the process of making a product
or service available for use or consumption
The marketing is done by the company through identifying agencies.
COMPANY
IDENTIFYING
AGENCIES
WHOLE SALERS RETAILERS
WHOLE
SALERS
RETAILERS CUSTOMERS
RETAILERS CUSTOMERS
CUSTOMERS
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MARKETING OF THE COMPANY
Bombay yarn market and the local power looms are the market
for yarns. The main product are targeted to power looms mainly
Birane, Malgoan, Inchalaring etc. Depot keepers are doing the sales of
yarn. It is done through agents.
To fix the market on trend it is not fined or fluctuates down or
up. There has been a bargaining power. The quantity rate is finding at
YPC meeting. Head Office will approve the rate and send a fax
message to the mill. The price is fixed based on count, rate and
quantity.
If the yarn is send to the godown, one copy of invoice is send to
NTC godown keeper, one copy to concerned part, one to head office
and the one will kept in the office file.
The retail showroom has also improved their performance. Thetotal turnover of the retail out lets has improved to Rs 13.45 crores as
against to Rs 7.06 crores during the previous year. The corporation has
also supplied the cloth to various government departments and public
sector undertakings.
Customers:
The customers of the company are follows:
1. Cloth manufacturers.2. Whole sale dealers.3. Some retailers.4. Garment manufacturers.
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Competition:
The main competitions are small spinning units from South India.
The company competes with power loom sector and readymade sector.
Now there is a trend that most of the people would like to buy
readymade dresses. They are not at all interested to buy clothes from
tailors shop, because the prices of some readymade garments are
cheaper than cloths.
Commissions:
Company allows 1.5% as commission to the parties in
distribution. The structure of the payment of commission is as follows.
Through deposit (1.55% for yarns) In other state (1.5% for yarns)
Customer Service:
This is a positive step on the part of the company for the
customers. The customer service policy can be summarized as follows:
The company satisfies the colour and quantity requirements of thecustomers.
If there any defect in the product after sales, the company allows aconsiderable amount of discount or return the goods.
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At present, the product is concerned in the weaving mills of
Mumbai. The quality of the yarn supplied by the company is
comparable to international standards. However due to fluctuation in
the market price the company is able to realize the competitive rates.
The textile business is also affected due to import of fabrics as a result
of globalization. Further due to monetary and economic recession in
South Asian countries there has been reduction in demand for textileproducts forcing many exporters to turn to the same product of the
company.
So in those areas the company tries to enter through some sales
promotion activities through consigned agents and their brokers. The
brand name of the mill is Lakshmi mills packaging and its done at
hope ovals sacks (bag hopes) which is done by textile industry
department.
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SWOT Analysis is a strategic planning method used to evaluate
the strength, Weakness, Opportunity and Threats of a project or in a
organization. It involves specifying the objective of the business
venture or project and identifying the internal and external factors that
are favourable and unfavourable to achieve that objective. Specifically,
SWOT is a basic, straightforward model that assesses what an
organization can and cannot do as well as its potential opportunities
and threats.
The SWOT framework was described in the late 1960s by
Edmund P. Learned, C. Roland Christiansen, Kenneth Andrews, and
William D. Guth in Business Policy, Text and cases (Homewood), IL:
Irwin, 1969). The general Electric Council used this form of analysis in
the1980s.
Internal Assessment of the Organization
STRENGTH WEAKNESS
OPPORTUNITIES THREATS
SWOTANALYSIS
External Assessment of the Organization
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5.1. STRENGTH
Presence of highly technically qualified executives Company and its workers are strongly committed to quality Technical abilities of the machineries Well developed technologies Quality of the product Product is accepted in the market New mill as compared to other mills Good work culture is situated Very large asset base Adaptive to technology Frequent supply of electricity Very good Infrastructure
5.2. WEAKNESS
Prices of finished goods are controlled by government, but prices of theraw materials are decontrolled.
Unhealthy industry practices Less delegation of authority to department heads Fluctuation in raw material quality Employee morale at lower level is less High absenteeism Less efforts to motivate employees Shortage of labour Bad financial base
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5.3. OPPORTUNITY
Strong marketing network in South India 66 acres of land and infrastructure facilities Alternative less expensive source energy and other inputs The company can make use of the existing facilities more productively. There is an increase in the demand of cotton fabric in the national as
well as international market.
As a public ltd company, it gets more support from government
5.4. THREATS
Fluctuation in the prices of raw materials. Delay in taking decisions. Lack of product differentiation Stiff competition from other spinning and weaving mills. Increase in cost of production due to more wastage. Less basic and recreational facilities provided to the workers may
result in uneasiness among workers in future.
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6.1. FINDINGS
All the employees in the organization are aware of the disciplinaryprocedures prevailing in the organization.
Most of the employees are well experienced. The mill has established a name for quality of its yarn in the textile
industry.
Labour relations are smooth and labour problems are minimal. Most of the employees are males in the age group of above 45 years. Most of the employees monthly income is between 5000 and 10,000. Most of the employees feel secure in their job. There is no career development programme or performance appraisal
system in the company.
Most of the employees are satisfied with the grievance solvingprocedure of the organization
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6.2. SUGGESTIONS
Installation of additional machinery or man power will help to reducethe work load of employees.
It is advisable to provide training and development programmes toemployees in order to increase their efficiency.
Company can provide more job security so it will help to increase theemployee morale.
Company resources should be optimally utilized to make the companyprofitable.
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7.1. CONCLUSION
Kerala Lakshmi Mills is a name that stands for the quality of textiles.
It is a premier textile industry which has established a name for itself
by its extra ordinary performance during the previous years. Till last
year the company was generating a huge amount of loss that is crores
of rupees. But at present the company is coming back to track and
losses of the previous years has been considerably reduced. The main
reason for this come back is that the modernization is in vogue and the
productivity has improved.
The commitment and efficiency of employees has helped Kerala
Lakshmi Mills in capturing highly competitive market. Product quality
enables the organization to get the prominent place among the
corporate entries.
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BIBLIOGRAPHY
Online Sources:-
www.ntc.com
www.google.com
www.managers.com
http://www.ntc.com/http://www.google.com/http://www.managers.com/http://www.managers.com/http://www.google.com/http://www.ntc.com/