Fortune elastomers pvt. ltd

FORTUNE ELASTOMERS Pvt. Ltd .

An Internship Project Report on

FORTUNE ELASTOMERS Pvt. Ltd.

Submitted to

BANGLORE UNIVERSITY

In partial fulfilment of the requirement for the award of

MASTER OF BUSINESS ADMINISTRATION

By

JASEEM.K.V

(Reg.No.12DKCMA025)

Guide

Asst. Prof. JANARDHAN SHETTY

SESHADRIPURAM INSTITUTE OF MANAGEMENT STUDIES

Yelahanka New Town, Banglore-560 064

2012-2014

SESHADRIPURAM INSTITUTE OF MANAGEMENT STUDIES Page 1


GUIDE CERTIFICATE

This is to certify that Mr.JASEEM.KV bearing university register

number 12DKCMA025 has completed this internship project on

“FORTUNE ELASTOMERS.Pvt.Ltd.” under my guidance. This

project is based on original study conducted by him and the report has not

formed a basis of awarding any other Degree/ Diploma/ Certificate by

this University or any other University.

Place: Bangalore Mr. JANARDHAN SHETTY

Date: (Asst. Professor)



DECLARATION

I declare that this internship project report on FORTUNE

ELASTOMERS Pvt. Ltd. place is an original and bonafied work

carried out by me during the academic year of 2013-2014 under

the supervision of Asst.Prof. JANARDHAN SHETTY, Designation

of Seshadripuram Institute of Management Studies. This

report is submitted in partial fulfillment of the requirement of

Master of Business Administration of Bangalore University.

I also declare that no part of this representation has been

previously published or submitted as a project representation for

any Degree or Diploma of Bangalore University.

Place: Bangalore JASEEM.KV

Date: (Reg.No.l 2DKCMA025)



ACKNOWLEDGEMENT

I would like to express my profound sense of gratitude and

sincere thanks to Dr.S.N.VENKATESH (Principle of

Sheshadripuram Institute of Management Studies), Dr.

D.K.MURTHY(Director), I take this opportunity to thank them

with all my heart for their valuable suggestions and sincere co-

operation rendered to me during the academic period.

I extent my thanks to “ FORTUNE ELASTOMERS Pvt.

Ltd.” for having given me an opportunity to undergo placement

in partial fulfillment of MBA PG course of Bangalore University.

I sincerely thank with immense pleasure to Mr. Janardhan

Shetty, Asst Professor, MBA, Seshadripuram Institute of

Management Studies, Bangalore for her guidance and encouragement

throughout the project work.

Finally I extend thanks to all my family members and

friends for the encouragement I got from them and also well-

wishers for their sustained help and prayers.

Place: Bangalore JASEEM.KV



Date: (Reg. No. 12DKCMA025)

CONTENTS

SL.NO CHAPTERS PAGE NO

I ECONOMIC SCENARIO 1

II INDUSTRY ANALYSIS 6

III COMPANY ANALYSIS 15

IV FUNCTIONAL DEPARTMENT 26

i. PRODUCTION DEPARTMENT 27

ii. SALES DEPARTMENT 38

iii. HUME RESOURCE DEPARTMENT 43

iv.MARKETING DEPARTMENT 54

v. FINANCE DEPARTMENT 62

vi.MATERIALS DEPARTMENT 66

V SWOT ANALYSIS 70

VI SUMMERY AND SUGGESTION 72,73

VII STUDENTS LEARNING EXPERIENCE 74

BIBLIOGRAPHY 75

ROUTE MAP 76



LIST OF CHARTS AND PICTURES

SL.NO LIST OF CHARTS AND PICTURES PAGE NO

1 ORGANISATION CHART 25

2 PRODUCTION DEPARTMENT STRUCTURE 28

3 PRODUCTION PROCESS LAYOUT AND PACKING PROCESS 33,34

4 MACHINES AND PRODUCTS PICTURE 35,36,37

5 SALES DEPARTMENT STRUCTURE 38

6 HR DEPARTMENT STRUCTURE 43

7 MARKETING DEPARTMENT STRUCTURE 54

8 FINANCE DEPARTMENT STRUCTURE 63

9 MATERIALS DEPARTMENT STRUCTURE 67

10 ROUTE MAP 76



CHAPTER 1

ECONOMIC SCENARIO



ECONONMIC SCENARIO

1.1 Introduction

Manufacturing and industrial environments today are becoming increasingly

dynamic and competitive. Companies are competing on a global scale in a fast

moving world with customers demanding reliable delivery dates and high quality

products and services as well as quick response to market changes. Suppliers are

expected to deliver on time in increasingly small batches. To respond to these

demands, businesses need to increases and productivity efficiency. This can be

achieved through lead time and set up time reduction, through the implementation of

rapid changeovers and through effective scheduling.

In this new environment, cycle time reduction provides a key competitive

advantage. Reduced cycle time can translate into increased customer satisfaction.

Quick response companies can launch new products earlier, penetrate new markets

faster, meet changing demands, and can deliver rapidly and on time. They can also

offer their customers lower costs because quick response companies have efficient

processes with low inventory and less obsolete stock. According to practical studies,

halving the cycle time and doubling the work in progress inventory turns can increase

productivity. Moreover, quartering the time for one step typically reduces costs.

With reduced cycle times, quality improves too. Faster processes allow lower

inventories which, in turn, expose weaknesses and increase the rate of improvement.

After eliminating non value added transactions there are fewer opportunities for

defects. Fast cycle time organizations experience more rapid feedback throughout the

supply chain as downstream customers receive goods closer and closer to the time

they were manufactured.

On the other hand, businesses that do not pursue cycle time reduction do not

merely stand still. They face the opposite of cycles of learning. When a company cannot

manufacture quickly enough to respond to customer orders, they must institute forecasts.

The longer the cycle time, the further out and less accurate the forecast becomes. Forecast

errors because expediting to meet unexpected demand and the disruption adds to queuing



and missed deliveries. The entire production process becomes asynchronous with high lead

time variability and raising safety stock needs.

1.2 Indian Economy Overview

India's economic growth is expected to pick up a faster pace in 2013-14 and record six

per cent plus levels of gross domestic product (GDP), according to Mr C Rangarajan,

Chairman, and Prime Minister's Economic Advisory Council (PMEAC).

India was reported to expand at a better rate as compared to its three BRIC peers

China, Russia and Brazil in May 2013, as per a survey by HSBC.

India was also ranked amongst the top 20 real estate investment markets globally with

investment volume worth Rs 190 billion (US$ 3.05 billion) recorded in 2012,

according to Cushman & Wakefield's report ‘International Investment Atlas’.

India witnessed an improvement in its business climate on the back of increased

foreign direct investment (FDI) and greater revenue receipts by the Government. The

‘BluFin Business Cycle Indicator (BCI)’, which reflects various macroeconomic

trends on a monthly basis, stood at 165.3 points in July 2013, 5.3 per cent higher

compared to July 2012.

Some of the other important economic developments in the country are as follows:

Indian companies have invested Rs 3,497 billion (US$ 57 billion) across

Europe during 2003-2012, of which Rs 2,358 billion (US$ 38.44 billion) was

through mergers & acquisitions (M&A) deals of 411 companies. A dominant

47 per cent of the Indian greenfield investment and 63 per cent of the

employment creation was received by the United Kingdom (UK)

Indian companies have raised about Rs 117 billion (US$ 1.9 billion) through

external commercial borrowings (ECB) and foreign currency convertible



bonds (FCCB) in June 2013 to fund modernisation, foreign acquisition,

importing of capital goods and refinancing of old loans

India registered FDI growth of 24.2 per cent year-on-year (y-o-y) to touch Rs

242.28 billion (US$ 3.95 billion) in April-May 2013, according to data

released by the Department of Industrial Policy and Promotion (DIPP)

The cumulative amount of FDI equity inflows into India were worth Rs 12.09

trillion (US$ 197.24 billion) between April 2000 to May 2013, according to

the latest data published by Department of Industrial Policy and Promotion

(DIPP)

Foreign institutional investors (FIIs) made a net investment (including equity

and debt) worth Rs 30.57 billion (US$ 498 million) as on August 7, 2012-13,

according to data published by Securities and Exchange Board of India (SEBI)

India's foreign exchange reserves (Forex) stood at Rs 17.01 trillion (US$

277.17 billion) as on August 2, 2013, according to the weekly statistical data

released by Reserve Bank of India (RBI). Exports during July 2013 were

valued at Rs 1.60 trillion (US$ 25.83 billion), which was 11.64 per cent higher

in terms of dollar

India’s export of software services (computer services and Information

Technology Enabled Services (ITeS)/Business Process Outsourcing (BPO)

services) during 2011-12 was estimated at Rs 2,480 billion (US$ 40.38

billion), of which computer services exports accounted for a share of 75.2 per

cent, as per Reserve Bank of India (RBI) data

A total of 173 special economic zones (SEZ) in India have commenced export

operations. The contribution of SEZ exports stood at Rs 1,300 billion (US$

21.16 billion) in the first quarter of 2013-14

The total mergers and acquisitions (M&A) in April 2013 were valued at Rs

102 billion (US$ 1.66 billion) through 39 deals, according to the data released

by Grant Thornton



1.3 Growth Potential Story

India has a market potential of €2 billion (US$ 2.66 billion) for setting up

high-voltage transmission lines by 2018, as per Alstom. The high-voltage

direct current (HVDC) market is estimated at €50 billion (US$ 66.47 billion)

in the next 10 years, and Alstom is targeting a 20 per cent market share

Private equity (PE) firms are keen to invest Rs 122.80 billion (U$ 2 billion) in

the real estate market in India, according to a report by Cushman &

Wakefield. PE investments in real estate was recorded at Rs 16.38 billion

(US$ 266.81 million) in H1 2013 The growing stability of the market is

reflected by the continuous growth of the core investors, with over Rs 77.05

billion (US$ 1.25 billion) invested in ready office space during the last three

years

The greenfield investments by automobile manufacturers in India may entail

total investments worth Rs 70 billion (US$ 1.47 billion) to be incurred by auto

component manufacturers over the next three years, according to a study by

ICRA

The logistics sector of India is valued at Rs 6.73 trillion (US$ 110 billion) and

is expected to touch Rs 12.24 trillion (US$ 200 billion) by 2020. The sector

is will double its growth in seven years from the present growth rate of 15 per

cent, said Mr K V Mahidhar, Head, CII Institute of Logistics

The Government of India encouraged the agrochemicals industry to invest in

research and development (R&D) and innovations. Agrochemicals are

recognised as an essential input for increasing agricultural production and

preventing crop loss before and after harvesting

The Government of India's decision to allow foreign direct investment (FDI)

through automatic route in power exchanges, while retaining the cap at 49 per

cent, will open up opportunities for overseas players to participate in the

growth and development of the sector, especially the power exchanges



India witnessed 73.5 million mobile handset shipments for the January-April

2013 period. Also, smartphones to a tune of 9.4 million were shipped into

India, registering a growth of 167.3 per cent on an annual basis

The risk and procurement analytics sector in India is expected to grow from

the present Rs 61.24 trillion (US$ 1 billion) to Rs 183.72 trillion (US$ 3

billion) in 6-7 years, according to a report by National Association of Software

and Services Companies (Nasscom). In addition, Nasscom expects the IT

services sector in India to grow by 13-14 per cent in 2013-14 and to touch Rs

13.79 trillion (US$ 225 billion) by 2020

The enterprise software market in India is expected to reach Rs 240.66 billion

(US$ 3.92 billion) in 2013, registering a growth of 13.9 per cent over 2012

revenue of US$ 3.45 billion, according to Gartner

The prime office space segment across key cities—Mumbai, the National

Capital Region (NCR), Pune and Bengaluru—in India witnessed a fresh

supply infusion of more than 20 million square feet (sq. ft.) in the first six

months of 2013, witnessing a growth of 16 per cent on y-o-y basis, as per a

report titled the India Office Market View Q2 2013 by CBRE

As the healthcare coverage across the country increases, the industry is

expected to register a CAGR of 12 per cent to reach Rs 4,200 billion (US$

68.46 billion) in 2015-16, as per data released by VCCEdge

1.4 Road Ahead

For India to grow at 8-9 per cent in the future, the growth has to come through

sustained growth in manufacturing, particularly labour-intensive manufacturing,

highlighted Dr Man Mohan Singh, the Prime Minister of India, at the meeting of the

high-level committee on manufacturing.

A report by CRISIL estimated that the Indian economy will grow at a higher rate of

6.7 per cent during 2013-14 due to revival in consumption.



More so, the Government projects the Indian infrastructure landscape to attract

investments worth Rs 49,000 billion (US$ 803.28 billion) during the 12th Five Year

Plan period (2012-17), with at least 50 per cent funding from the private sector.

Exchange Rate Used: INR 1 = 0.01638 as on August 12, 2013

CHAPTER-2

INDUSTRY PROFILE



INDUSTRY ANALYSIS

2.1 HISTORY OF FOOTWEARS:-

Spanish cave drawings from more than 15,000 years ago show humans with animal

skins or furs wrapped around their feet. The body of a well-preserved “ice-man”

nearly 5,000 years old wore leather foot coverings stuffed with straw. Shoes, in some

form or another, have been around for a very long time. The evolution of foot

coverings, from the sandal to present-day athletic shoes are marvels of engineering,

continues even today as we find new materials with which to cover our feet. Has the

shoe really changed that much though? We are, in fact; still wear sandals – the oldest

crafted foot covering known to us. Moccasins are still readily available in the form of

the loafer. In fact, many of the shoes we wear today can be traced back to another era.

The Cuban heel may have been named for the dance craze of the 1920s, but the shape

could be seen long before that. Platform soles, which wear one of the most

recognizable features of footwear in the 1970s and 1990s, were handed down to us

from 16th century chopines. Then, high soles were a necessity to keep the feet off of

the dirty streets. Today, they are worn strictly for fashion’s sake. The poulaine, with

its ridiculously long toes was not that different from the winkle pickers worn in the

1960s. If one can deduce that basic shoe shapes have evolved only so much, it is

necessary to discover why this has happened. It is surely not due to a lack of

imagination – the colors and materials of shoes today demonstrate that. Looking at

shoes from different parts of the world, one can see undeniable similarities. While the

Venetians were wearing the chopine, the Japanese balanced on high-soled wooden

shoes called Get. Though the shape was slightly different, the idea remained the same.

The Venetians had no contact with the Japanese, so it was not a case of imitation.

Even the mystical Chinese practice of foot binding had been copied (though to a

lesser extent) in our culture. Some European women and men of the past bound their

feet with tape and squashed them into too-tight shoes. In fact, a survey from the early

1990s reported that 88 percent of American women wear shoes that are too small!



2.2 INDIAN FOOTWEAR INDUSTRY

The footwear sector is a very significant segment of the leather industry in India;

rather it is the engine of growth for the entire Indian leather industry.

India is the second largest global producer of footwear after China, accounting for

13% of global footwear production of 16 billion pairs. India produces 2065 million

pairs of different categories of footwear (leather footwear - 909 million pairs, leather

shoe uppers - 100 million pairs and non-leather footwear - 1056 million pairs). India

exports about 115 million pairs. Thus, nearly 95% of its production goes to meet its

own domestic demand.

2.2.1 The major production centers in India are

Chennai, Ranipet, Ambur in Tamil Nadu, Mumbai in Maharastra, Kanpur in U.P., Jalandhar in Punjab, Agra, Delhi, Karnal, Ludhiana, Sonepat, Faridabad, Pune, Kolkata, Calicut Ernakulam.

About 1.10 million are engaged in the footwearmanufacturingindustry.

2.2.2 Footwear exported from India are Dress Shoes, Casuals, Moccasins, Sport Shoes, Horrachies, Sandals, Ballerinas, Boots, Sandals and Chappals made of rubber, plastic, P.V.C. and other materials.



2.2.3 Brands sourced from India:

2.2.4 Besides, major brands are sourced from India, MNC brands are sold in India and

Indian brands sold in India.

MNC Brands Sold in India Indian Brands sold in India

Aldo, Bally, Clarks, Ecco, Florshiem,

Ferragammo, Hush Puppies, Lee cooper,

Lloyd, Marks & Spencer, Nike, Nine

West, New Balance, Reebok, Rockport,

Stacy Adams, Tod’s, Geox , Louis

Vuitton

Red Tape, Bata, Liberty,

Khadims, Lakhani, Metro,

Action

US Retail giant Wal-Mart has also begun sourcing footwear from India since the last

two years.

The Footwear sector is now de-licensed and de-reserved, paving the way for

expansion of capacities on modern lines with state-of-the-art machinery. To further

assist this process, the Government has permitted 100% Foreign Direct Investment

through the automatic route for the footwear sector.


Footwear

Acme,Ann Taylor, Bally, Charter Club, Clarks, Coach,Colehann,

Daniel Hector,Deichmann, DKNY, Double H,Ecco, Elefanten,

Etienneaigner, Florsheim, Gabor, Geoffrey Beene, Guess,Harrods,

Hasley, Hush Puppies, Kenneth Cole, Liz Claiborne, Marks &

Spencer,Nautica, Next, Nike, Cole Haan, Nunn Bush, Pierre

Cardin, Reebok, Rockport,Salamander, Stacy Adams,Tommy

Hilfiger, Tony Lama, Versace, Yves St. Laurent, Zara, Johnston &

Murphy, Docksteps, Timberland,Armani, Geox, Diesel, Ted Baker,

Lacoste, Kickers, Calvin Klein, Sioux,Brasher, Zegna, Massimu

Dutti, Buggatti, Lloyd, Christian Dier, Salamander,Camper, Bata,

Espirit, French Connection, Legero, Mercedez, H & M and many

more famous brands


Conducive Investment climate towards attracting overseas investments and increasing

cost competitiveness.

The Government of India is setting up dedicated Footwear Complex and Footwear

Components Part where footwear clusters are located.

There has been active interest in collaborating with Indian Footwear companies from

European countries like Italy, Spain and Portugal.

2.2.5 Footwear Imports Global Trend:

Major Importing Countries of Footwear (Leather and Non-Leather)

(Value in Million US$)

Source: International Trade Center , Geneva

2.2.6 Major Exporting Countries of Footwear (Leather and Non-Leather)

(Value in Mn $)

Country 2008 2012

China 24181.69 39374.18


Country 2008 2012

USA 20039.13 23245.06

Germany 5966.99 8527.62

France 5473.04 6538.01

UK 5281.55 5886.75

Italy 4529.77 5661.77

Japan 3750.04 5062.13

Hong Kong 4881.67 4850.30

Russia 2067.82 3935.95

Netherlands 2297.95 3716.65

Spain 2388.74 3114.08

Belgium 2543.04 2427.09

Canada 1677.05 2089.43


Italy 9712.94 10376.18

Hong Kong 5639.64 5317.32

Germany 2999.19 4659.42

Belgium 3375.63 4155.85

Indonesia 1567.05 3227.01

Netherlands 1811.96 3225.10

Spain 2440.47 2823.39

France 1840.51 2420.04

Portugal 1695.88 2088.41

UK 1055.99 1469.57

Romania 1394.32 1393.71

2.2.6 Footwear – Global Scenario and India’s share

The global import of Footwear (both leather footwear as well as non-leather

footwear) has increased from US$ 81.47 billion in 2007 to US$ 103.38 billion in 2011,

growing at a CAGR of 6.13%. During 2011, the India’s share in the global import is 1.92%.

(In Million US$)

2008 2009 2010 2011 2012

Global import of Footwear 81477.88 88822.80 78453.08 91614.94 103385.24

India's export of Footwear

& Uppers

1489.35 1534.32 1507.59 1758.67 2079.14

% Share of India 1.82% 1.72% 1.92% 1.91% 2.01%

Source: Inter national Trade Center , Geneva & DGCI &S, Kolkata

For comparison purpose, Global Footwear import includes leather & non-leather footwear. India’s

Footwear includes – Leather, non-leather and leather uppers

Footwear is the engine of growth of the leather industry in India. India’s export of

Footwear touched US$ 2055.93 million in 2012-13, accounting for a share of 41.14%

in India’s total export from the leather sector of US$ 4996.91 MN.



India’s Footwear export (leather, uppers & non-leather) is growing at a CAGR of

7.59% in the last five years ending 2012-13

India’s export of leather footwear had increased from US$ 1174.03 million in

2007-08 to US$ 1684.22 million in 2012-13.

India’s export of footwear components had declined from US$ 269.30 million

in 2007-08 to US$ 245.04 million in 2012-13

India’s export of non-leather footwear has increased from US$ 46.02 million in

2007-08 to US$ 126.67 million in 2012-13

2.2.7 India’s Footwear Export Growth over the last Four Decades

Export of footwear from India increased manifold over the last four decades.

During 2012-13, India’s footwear export is valued at US$ 2055.93, constituting

41.14% share in total export of leather & leather products.

Footwear exports has increased from US$ 102.37 million in 1982-83 to US$ 2055.93

million in 2012-13

2.2.8 Major Markets:

The major markets for Indian Footwear are UK with a share of 19.06%, Germany

13.36%, USA 11.06%, Italy 7.96%, France 7.61%, Spain 4.93%, Netherlands 4.47%,



UAE 3.67% and Denmark 1.60%. Nearly 82% of India’s export of footwear goes to

European Countries and the USA with exports touching US$ 1456 mn to EU and US$

227.37 mn to the USA. Future growth of Indian footwear in India will continue to be

market driven. The European countries and the US are major consumers for the Indian

footwear.

2.2.9 A Statement showing India’s Export of Footwear (leather, non-leather and

leather shoe uppers) to different countries:

(Value in Million $)

Country 2005-06 2006-07 2007-08 2008-09 2009-10 2010-

11

2011-

12

2012-

13

% Share

Germany 170.97 217.23 246.84 229.65 224.3 286.7 353.71 274.63 13.36%

UK 195.78 208.2 241.37 247.06 296.45 339.65 360.52 391.95 19.06%

Italy 134.35 186.11 229.81 221.09 210 219.72 219.61 163.66 7.96%

USA 131.07 127.15 136.92 163.03 123.6 143.02 183.02 227.37 11.06%

France 74.48 99.81 116.03 119.2 144.56 154.95 159.49 156.53 7.61%

Spain 63.7 64.57 76.69 91.86 95.94 112.05 113.85 101.40 4.93%

Netherlands 32.96 48.57 72.91 76.2 65.13 6.19 101.72 91.82 4.47%

Portugal 22.15 35.03 37.34 28.21 22.63 25.69 28.76 21.40 1.04%

UAE 25.78 34.64 39.23 39.4 39.45 41.82 62.14 75.46 3.67%

Denmark 18.37 14.65 17.48 14.78 17.01 16.55 24.30 32.88 1.60%

Australia 11.58 10.11 12.52 13.34 15.5 12.82 15.59 22.41 1.09%

Sweden 6.77 7.99 12.04 12.64 12.2 12.07 14.08 11.98 0.58%

Canada 11.95 10.91 10.41 8.96 9.3 10.56 15.00 14.86 0.72%

SouthAfrica 8.26 12.11 8.52 8.49 9.87 11.33 14.75 13.49 0.66%

Japan 3.17 3.07 4.63 8.23 5.45 7.51 14.63 18.85 0.92%

Others 133.9 156.76 226.61 252.18 216.2 358.04 397.97 437.24 21.27%



Total 1045.24 1236.91 1489.35 1534.32 1507.59 1758.67 2079.14 2055.93 100.00%

2.2.9.1 Future Trends: - Keeping in view its past performance, current trends in global

trade, the industry’s inherent strengths and growth prospects, the footwear industry

aims to augment production, thereby enhancing its exports from the current level of

US$ 2.07 billion.

2.2.10 Indian footwear industry poised for growth

India has state-of-the-art manufacturing plants. The footwear sector has

matured from the level of the manual footwear manufacturing method to the

automated footwear manufacturing systems. Footwear production units are installed

with world class machines. Manned by skilled technicians, these machines help to

turn any new innovative idea into reality. Support systems created for the sector have

indeed served the footwear industry well. India has a well developed footwear

component manufacturing industry. The future growth of the footwear industry in

India will continue to be market-driven, and oriented towards EU and US markets.

With technology and quality of the footwear improving year after year, Indian

Footwear industry is stamping its class and expertise in the global footwear trade.

2.3 FOOTWEAR INDUSTRY IN KERALA:



Above 100’s of footwear factories are working in Kerala. ‘Radiant Moulds’ in

Nallalam is the first footwear factory in Kerala. Now it’s known as Monaco

footwear’s. There are plenty of footwear factories working in Malabar. Malabar is

known as the land of footwear industry.

In 1990 the Chappals industry entered in Kerala. Then this industry

remarkably growing. This particular industry gives employment to a great part of

population in Kerala because of this particular reason the state Govt. Is boosting this

industry by providing loans and incentives for their growth.

The main reasons for the concentrated of these industries in Malabar are the

following.

Availability of raw materials.

Easy transportation facility

Good market

Easy availability of fuel and power at Concessional rates.

Labor supply



CHAPTER-3

COMPANY ANALYSIS



COMPANY PROFILE

3.1 VKC GROUP OF COMPANIES

“VKC group of companies are the leading footwear manufacture especially

in southern region of India. The group established on (August17) 1984 with a nominal

capital and few employees. In 1984 the founder of the group Mr. V.K.C. Mammed

Koya started a Hawai Sheet manufacturing unit with his two brothers. Later on Hawai

straps were also inducted to the production line and in 1986 VKC group launched the

first product with its own brand name in the market viz. VKC Hawai with an initial

production of 600 pairs per day. By 1989 the production increased to 5000 pairs a day

and by 1996 it jumped to 17000 pairs.

In between the founder initiated the floating of the first RPVC (Rigid

Polyvinyl Chloride) footwear manufacturing unit in the Malabar Area of Kerala state

with few of his friends. This product also got very good acceptance in the market.

This resulted in a rapid change in the footwear industry itself. Within a few years the

number of Rubber and RPVC unit grew to more than 80 in this area.

In 1994 the group ventured the first unit in Kerala to manufacture footwear

from virgin PVC. This resulted in a drastic change and the multinational brands

confronted competitions from the local brands. In 1998 the group started the first

Micro Cellular PVC footwear in Kerala with the help of imported plant and

machinery. “Quality at low price” made the VKC groups products popular in the

market day by day.

In 2001 the group started the first Air Injected PVC DIP footwear

manufacturing unit in the South India. In 2003 the group missioned the first Injected

EVA manufacturing unit in South –Central India. In 2006 the group started backward

integration to produce EVA compound for Injection and started the first EVA

compounding plant in the South –Central India.

During this period new bloods with technical, commercial and practical

knowledge were inducted and now the group consists of 25 working Directors and



100 share holders spread over 16 various units. And have annual group turnover of

Rs.4000 million. More than 4000 employees are working in these units.

The company had achieved a prominent position in the footwear market of

India. The main markets, which is been focused by the company are Kerala,

Tamilnadu Karnataka, Madhya Pradesh, Gujarat, Andra Pradesh. It has now expanded

its market in countries such as Saudi Arabia, Dubai, Kuwait, Oman, Bahrain and

Qatar.

The good quality and variety in models of VKC products help the

companies to face the market competition positively. The company has been able to

maintain the quality of the products by adopting foreign technologies. The group is

now looking for further avenues in the field of footwear to stretch their hands.

3.2 Vision

To provide quality products to the customer at an affordable price.

3.3 Mission

To meet the market demand and to achieve a prominent position in the Footwear

industry.

3.4 Motto

“Quality products at Affordable Price”



The Head Quarter of VKC group is in CALICUT and the plants of VKC

group of companies are situated in Kerala, Tamilnadu, Andra Pradesh and Gujarat.

The following are the associate companies of VKC group.

o M/s. VEEKESY RUBBER INDUSTRIES PVT.LTD.

o M/s. VEEKESY ELASTOMERS PVT.LTD.

o M/s. VEEKESY POLYMERS PVT.LTD.

o M/s. SANDLON TECHNOLOGIES PVT.LTD.

o M/s. FORTUNE ELASTOMERS PVT.LTD.

o M/s. CALTECH POLYMERS PVT.LTD.

o M/s. SLIPONS INDIA PVT.LTD

o M/s. DIADORA SHOES PVTLTD.

o M/s. DIMESCO FOOTCARE INDIA PVT LTD.

o M/s. KOVAI FOOTWEARS PVT.LTD.

o M/s. FERRARI SHOES (INDIA) PVT.LTD

o M/s. VEEKESY FOOTCARE (INDIA) PVT. LTD

o M/s. FERRERO VINYL TECHNOLOGIES PVT.LTD

o M/s. MORBIDO VINYL PVT.LTD.

o M/s. SMARTAK FOOTCARE PVT. LTD.

o M/s. VKC FOOTSTEPS INDIA PVT.LTD

o M/s. VKC FOOTPRINTS INDIA PVT.



3.5 FORTUNE ELASTOMERS PVT.LTD

M/s. Fortune Elastomers Pvt. Ltd. is registered as a private limited company

and is one of the largest producers of DIP footwear’s in Kerala. It is one of the

associate concerns of renowned VKC Group of Companies. The founder of M/s.

Fortune Elastomers Pvt. Ltd. is Mr. V.K.C. MAMMED KOYA. The company is

situated at KOLATHARA; KOZHIKODE .The Company has been able to achieve a

landmark in the field of footwear through the continuous researches in footwear

industry. The company manufactures Pride brand footwear having PU sole with

leather and synthetic leather upper. The company was incorporated on 17.02.2000

under the Companies Act 1956 and commenced its production on 24 th September

2001.

All affairs and day-to-day business administration of the firm is vested in

the hands of Board of Directors. They are in charge of various functions pertaining to

Finance, Production, HR, Marketing, Administration and Materials departments. The

board is assisted by well qualified staff members. Each department has functional

heads, senior and junior executive in order to support and help functional heads.

M/s. Fortune Elastomers Pvt. Ltd caters to extend its markets of

Kerala, Karnataka, Tamilnadu, Andra Pradesh and certain countries outside India.

M/s. Fortune Elastomers exports the footwear’s to countries such as Saudi Arabia,

Dubai, Kuwait, Oman, Bahrain and Qatar. Exports have shown a steady growth over

the years .The products have a high brand value in the minds of the people of Kerala

because of the quality and the affordable price of the product. The management gives

high priority to the quality of the product. The company assures the quality of the

product through the continuous quality checking in each and every stages of the

production process. The quality of the VKC products is unrivalled in the market. The

Footwear’s introduced by the company has been growing and evolving with the



changing trends over the year. In recent years the customers prefers the DIP

Footwear’s than any other Footwear.

As we are manufacturers of footwear, we focus mainly on production

process of the organization. The function of the production department is to produce

our products on time, to the required quality levels, at the defined product cost. The

main advantage of the company is the implementation of Italian technology for the

injection moulding process. We have both automated and manual machines for

production of footwear’s. The quality of the imported Synthetic leather, imported by

us helps from the problem of smelling due to sweatiness and wetness, which is seen in

ordinary leathers.The finish, comfort, and elegances are highly superior when

compared to the ordinary leather. The production process is line production process

whereby materials are put through a refining process to produce end-product through

sequential operations. Of major concern to the production manager is monthly output.

Production managers have monthly targets which they are expected to strive to meet

or exceed. The total production estimated for a year is 51.6 lakh.

The production department of M/s. Fortune Elastomers Pvt. Ltd comprises

of well experienced staff members starting from functional head, department head,

coordinator, supervisors, shift engineers, machine operators, pouring men and

workers. Production department also aims at maintaining the quality of products been

produced. Every employee is expected to take responsibility for managing quality

issues in order to make sure that waste is minimised and quality maximised. Quality

checking and assurance is carried out every day on a number of occasions to ensure

that the production process is working efficiently and effectively.

We use different machines to produce footwear’s. The company purchases footwear

moulds from Taiwan, China, and Italy. This will help the company to assure high

quality finished product.

Most of our machines are imported from abroad. It includes high speed

mixer machine, fully automatic air injection moulding machine, air drier & chiller,

cooling tower, cementing machine, box strapping machine, clicker machine, generator



conveyor, stitching machine. M/s.Fortune Elastomers Pvt.Ltd. has succeeded in

withstanding stiff competition from the parallel manufactures because of the superior

quality of the products at reasonable price.

Other than production and quality checking, production department

performs one more function. That is packing of finished products into cartons. A set

of workers are assigned to pack finished products into specified cartons or boxes

according to their name and size. Before packing quality is again checked by the

workers. After packing all these cartons are sent to stock room for storing so that it

can be sent to dealers directly according to the order placed.

After production these products are being sold in the market according to

the orders taken by marketing department. The marketing department studies the

market and the target customers, decides the best way to reach these customers, and

works with the rest of the company to help determine the new product needs of the

market. We do continuous market research, which helps us in planning and executing

marketing strategies for the future course of action. It also helps us in analyzing the

buyer habits, popularity of product, and effectiveness of advertising media. It also

helps to collect information about marketing problems and opportunities

The company executives are directly taking the orders from the wholesalers.

The Company has very good system for the supply of the products to the wholesalers.

We sent our products through parcel service to various dealers based on their orders to

respective places and doesn’t have connection with any retailers. Our product reaches

the hand of customers through retailers, who gets it from wholesalers.

The company manufactures products on the basis of demographic

segmentation. As a result, we produce products aiming youngsters, gents and ladies at

affordable price with high quality. We produce footwear under the name VKC Pride.

The company slogan is “The Coolest Choice from fortune”. The Company

treats the advertising as the main mode of marketing to improve the sales of our

products.. Ambassador of our product is Cine Actress Meera Jasmine. VKC’s

Advertising covers all activities connected with giving publicity regarding goods and



services offered for sale. The main Medias for advertising are: Indoor Media &

Outdoor Media

Indoor Media includes TV Channels, News papers, Magazines, Catalogues,

Danglers, Calendars, & Stickers. Advertisement of the products are given in all the

major TV channels in Malayalam Outdoor Media includes Name boards, A boards

and Hoardings.

Marketing and sales goes hand in hand. Sales promotion plays a major role

for the success of the VKC products. Sales promotion influences the customers for

buying the products and also helps to meet competition and helps in stimulating

demands. Sales Promotion is carried out in two ways.

Consumer’s promotion and dealer promotion. Consumers promotion

consists of providing coupons, contest that we conduct and price offer for our various

products. For dealers we conduct sales contest, give gifts, and turnover allowance

based on the amount products been purchased from our firm. Company provides

scheme called VKC Sammanotsavam for dealers based on their purchase for that

particular year.

The Company conducts the Wholesalers Meet at least once in a year. By

this the company provides an opportunity to the wholesalers to interact with the

company and between the dealers. This helps to find problems, sort out differences,

and to formulate plans for future improvement in the market.

The adequate production, supply, good quality, affordable price of the product, and

the various marketing techniques used by the company helps products to be a superior

one in the market that satisfies the customer.

Human resource department of the organization caters to the need of both

employees and workers of the organization, resulting in a good relation between

employees and workers. They are well satisfied with the attitude of the management

towards them and in the facilities provided to them. So there are no labour strikes,

absenteeism and attrition. The company provides excellent training programs for the



employees to improve the skills and productivity with in a lesser time. The employees

are getting the statutory benefits like Bonus, ESI scheme, Employees Provident Fund,

Festival Holiday Allowances from the company. They are often given awareness class

related to cleanliness, health and safety. HR department maintain a help desk in order

to redress grievance of the workers and answer to their queries. There are total of 232

workers in the organization. Te number of male workers is 202 and the female is 30.

The company located in total 3.5 acre and the building 1.5 acre. It is a semi-urban

area by the company located and single level building.

Finance is life blood of every organization. It deals with procurement of

funds and their effective utilization in the business. Department has one department

head, one senior executive and four junior executive. Their functions mainly include

checking daily cash accounts, MIS preparation, bank reconciliation, central excise and

export related works, finalization of account statement etc.

M/s. Fortune Elastomers Pvt. Ltd doesn’t have any term loan and is financially stable.

The annual turnover of the organization for the last financial year 2011-2012 is 52

crores.

Materials department of the organization place order according to need of

material that’s used for production. Supervisor’s and production in charge gives

details of materials needed for production and accordingly materials are purchased by

placing order through e-mail.

3.6 TYPE OF THE ORGANIZATION

The company was formed under private limited. Mr.Mammed koya is the founder of

the unit on 24/09/2001 the company was started their work. The company location is

located in semi-urban area.

3.7 NAME OF THE PRODUCT

The company is producing costumer oriented product, only single brand is producing

in this unit that is” VKC Pride”. Total seven types brand are producing under the

VKC, remaining six types are producing another units the products name like, VKC



Lite, VKC Stile, VKC Slipons, VKC Junior, VKC Trendz, VKC Smartak. The

company producing the product aimed to all type peoples.

3.8 AWARD RECEIVED BY THE ORGANIZATION

The Chairman of the firm was awarded with Best Entrepreneur of Kozhikode

district by Kerala State Small industries Association for the year 2005-2006. And also

the company was got ISO certificate 9000-2001.

3.9 SOCIAL WELFARE

The VKC group is sponsored by a school at MARADU it is a

rural area.

The company chairman is giving cash to poor people for medical treatment. Every

Year the company is keeping cash for these purposes, it is the one little portion of

profit.

3.10 FUTURE PLANNING

The one of important future aspect is to be installing in SAP in the all department.

The VKC footwear is aimed that this idea will be making ease to doing the work and

to be minimizing the errors. It will be making more profit and all works are doing

with the help of computers.

Now the VKC footwear is trying to spread their market in world.

On this basis firstly the company is doing the research programme in North West part

of India and Middle East countries.



3.11 COMPANY PROFILE

YEAR OF INCORPORATION: 17/02/2000 (Functions started on 24/09/2001-

Company Act1956)

FOUNDER: Mr. Mammed koya (chairman cum MD)

CEO: Mr. K.M. Hameed Ali

3.11.1 DIRECTORS

Mr. V. Mohammed Abdul Kareem

Mr. P. Abdul Salam

Mr. K. UmmarFarook

3.11.2 MANAGERS

PRODUCTION: Mr.Abdul shukoor

SALES: Mr.Honey markose

HR: Mr.Praveen

FINANCE: Mr.Tarun Jagdish

MATERI: Mr.Sudheesh

3.11.3 LOCATION

SATATE: KERALA

DISTRICT: KOZHIKODE (CALICUT NH-17)

PLACE: KOLATHARA (SEMI-URBAN AREA)



PH NO: 04952482112

WWW.VEEKESY.COM

3.12 ORGANIZATION CHART


CHAIRMAN

DIRECTORS

MANAGER (ADMINISTRATION)

ASSISTANT MANAGER

PRODUCTION FINANCE

DEPARTMENT HEAD DEPARTMENT HEAD

EXECUTIVE

SUPERVISOR

COORDINATOR

SHIFT ENGINEERS

JUNIOR EXECUTIVE

SALES

DEPARTMENT HEAD

EXECUTIVE

JUNIOR EXECUTIVE

MATERIALS

DEPARTMENT HEAD

EXECUTIVE

JUNIOR EXECUTIVE

PERSONNEL

http://WWW.VEEKESY.COM/


CHART NO.1

CHAPTER-4

FUNCTIONAL DEPARTMENTS


SKILLED WORKERS

UNSKILLEDWORKERSJUNIOR EXECUTIVE

EXECUTIVE

DEPARTMENT HEAD


4.1 DEPARTMENT PROFILE

Fortune Elastomers Pvt. Ltd has five Departments. These departments are:

1. PRODUCTION DEPARTMENT

2. SALES DEPARTMENT

3. HUMANRESOURCE DEPARTMENT

4. MARKETING DEPARTMENT

5. FINANCE DEPARTMENT

6. MATERIALS DEPARTMENT



4.1.1 PRODUCTION DEPARTMENT

Production management is concerned with the decision making regarding the

production of goods and services of a minimum cost according to the demand of the

customers through the management process of planning, organizing and controlling

Production is the transformation of inputs into outputs. Production means creation of

utilities and covers all the activities of procurement, allocation and utilization of

resources such as labour, energy, material, equipment, machinery etc. Utilities are

goods and services which have want satisfying power. Production is the process by

which goods and services are created. Production is heart of all business activities.

4.1.1.1 MANAGER, NO.OF EMPLOYEES AND SALARY

Mr.Abdul shukoor is the production manager of the company. The company

salary structure of production department is 8000-15000; the unskilled labors salary is

starting at 6000. Total employees in the production department are 201.The

production process is going on three shift basis; each shift has one shift engineer at

the time of one shift. In the company all employees are working on permanent basis,

there is no contract employees.

4.1.1.2 TECHNOLOGY USED IN PLANT

Mainly Gusbi machines is using in the production process, it is the Italian

technology and also using indigenous technology. The company is followed on the

breakdown maintenance method. Every three months later the company was arranged

in a safety training programme. The standard unit of the production capacity of the

company is 21600(10800pairs). The maximum defected product produced per day

is .18%. The management is very carefully to handle the waste materials and defected

products. The company is following on semi-automated. The machines are arranged

in product layout model. That is similar machines are placed in a single group.



4.1.1.3 SAFETY MANAGEMENT

The fortune elastomers installed in well advanced technology. The working

place accident are happen in the company is very rarely cases. But it cannot be

predicted when to happen, so the management is conducted safety training

programmes every six months in the company.

4.1.1.4PRODUCTION DEPARTMENT STRUCTURE

CHART NO.2

4.1.1.5 FUNCTIONS

Make the use of maximum of raw materials

Control of production

Standardization in production

Ensure the flexibility in production

Minimization of cost of production

Ensure quality of products


DEPARTMENT HEAD

SUPERVISOR

COORDINATOR

SHIFT ENGINEERS

SKILLED WORKERS UNSKILLED WORKERS


Production is an economic process that uses resources to create a commodity that is

suitable for exchange. This includes manufacturing, sorting, shipping and packaging.

Some economists define production broadly as all economic activities other than

consumption. They see every commercial activity other than the final purchase as

some form of production

Production is a process, and as such it occurs through time and space. Because it is a

flow concept, production is measured as a “rate of output per period of time”. There

are three aspects to production processes;

A. The quantity of the commodity produced,

B. The form of the goods created,

C. The temporal and spatial distribution of the Commodity produced.

4.1.1.6 FACTORS OF PRODUCTION

The inputs or resources used in the production process are called factors of production

by economists. The myriad of possible inputs are usually grouped into 6 categories

these factors are;

Raw materials

Machinery

Labor services

Capital goods

Land

Entrepreneur

In the “long run”, all of these factors of production can be adjusted by the

management. The “short run”, however, is defined as a period in which at least one of

the factors of production is fixed.

A fixed factor of production is one whose quantity cannot readily be changed.

Examples include major pieces of equipment’s, suitable factory space, and key

managerial personnel.

A variable factor of production is one whose usage rate can be changed easily.

Examples include Electrical Power consumption, Transportation services, and most

Raw material inputs. In the short run, a firms “scale of operations” determines the



maximum number of outputs that can be produced. In the long run, there are no scale

limitations.

4.1.1.7 FOOTWEAR MANUFACTURING

The footwear manufacturing process is highly Labor intensive, requiring a

large number of cutting, screwing and stitching operations. For that reason,

manufacturing activities have been transferred to countries that can provide cheap

Labor, wholesalers, distributors and retailers of branded, unbranded and private label

footwear continuously search for the countries with lower cost manufacturers because

production machinery and equipment for making most types of footwear do not

require large investments, manufacturing operations can be moved readily from one

country to another with little difficulty.

The production department of M/s. Fortune Elastomers Pvt. Ltd comprises of well

experienced staff members starting from functional head, department head,

coordinator, supervisors, shift engineers, machine operators, pouring men and

workers. Production department also aims at maintaining the quality of products been

produced. Every employee is expected to take responsibility for managing quality

issues in order to make sure that waste is minimized and quality maximized. Quality

checking and assurance is carried out every day on a number of occasions to ensure

that the production process is working efficiently and effectively.

Most of our machines are imported from abroad. It includes high speed mixer

machine, fully automatic air injection molding machine, air drier & chiller, cooling

tower, cementing, box strapping machine, clicker machine, generator conveyor,

stitching machine. M/s. Fortune Elastomers Pvt. Ltd. has succeeded in withstanding

stiff competition from the parallel manufactures because of the superior quality of the

products at reasonable price.

Other than production and quality checking, production department performs one

more function. That is packing of finished products into cartons. A set of workers are

assigned to pack finished products into specified cartons or boxes according to their

name and size. Before packing quality is again checked by the workers. After packing

all these cartons are sent to stock room for storing so that it can be sent to dealers



directly according to the order placed. Eight machines are using the production

department, two gusbi machines set (one set include 5 machines).

4.1.1.8 PRODUCTION PROCESS

STEP-1: The first process is the Synthetic Rexene is cutting on the basis of different

models. For this process using in punching machines and dies, different shape of

upper part producing within in the help of different dies. In this stage should be

producing in the upper part of the footwear. There are classified into two parts one is

insole parts and other is upper material.

STEP-2: After the cutting process the insole parts are giving for printing and

embossing process. This process is done by the printing of company name and the

brand name like VKC Pride and also printing the prices of different models. The

upper part of the footwear is giving to in the stitching process. For this process the

company is using in the outside like in small units. They are stitching in the basis of

what models was given by the company.

STEP-3: After finished the step two the next process is the printing and embossing

the company name and brand name of the product, and fitting riveting above the

upper parts. The rivet is giving to some selective models, which are more showed in

the ladies model.

STEP-4: After the step three the insole parts and upper parts stitching together. This

one is collectively called to upper material finished footwear.

STEP-5: The next step is to be making bottom part; this process is called to raw

material mixing process.in this process mainly used in two raw materials like, polyol

and isognate. Programs logic control machines are used in the mixing process. It is an

automatic machine; programme software was uploaded in this machine. The polyol

firstly mixed in water after that the PLC machine mixed with isognate in 45 min. The

mixing quantity is 71.4gm isognate(white) and 62.4gm polyol after mixing

water(yellow).

STEP-6: The next process is the mixed raw materials are pull to the injection

machine. The lower footwear parts are looking in the two colors black and brown,

which color is needed that one is given in the 7.5gm to the mixed raw materials(71.4 :



62.4 : 7.5). In this step FRtest(forming ratio) was conducted with the help of PLC

system. If any variation was founded the PLC system display will be showed.

STEP-7: The step seven is the injection molding process. This raw material is

injected to the rotate machine. This machine has in a display for to show the

temperature any one. Total 60 dies are in one rotate machine (30 pairs). The pasting

process is also doing this step; the upper parts are placed into the rotate machine

branch it is moving up and down. The rotate machine branches are moving up and

down. Then the liquid are injected to the rotate machine dies after that the lift down

and rotate within the temperature 40-50 degree Celsius. In single footwear will be

taken for the semi-finished products in the rotate machine were 4 min.

STEP-8: The next process is trimming; it is the trimming to the waste part of the

insole. After that it will send to quality checking. FR test was already and one more

test is doing is called cup test. After that the finished goods giving to the packing

process with the help of conveyor. Corrugated cartons (2ply) are used in

packingprocess.



4.1.1.9 PRODUCTION PROCESS LAYOUT

Production Process

CHART NO.3

4.1.1.10 PACKING PROCESS

Trimming Process

Conveyor System


Synthetic Rexene

Raw Material Mixing

Cutting

Injection Molding

Process

Semi-

Finished

Insole

Material

Printing&

Embossing

Stitching Process

Trimming process

Packing Process

Stitching ProcessPasting

Process

Finished Footwear

UpperHeating

Process


Upper & Sole Cleaning

Tag Fitting

Packing into Small Carton

Fixing Size & Price Sticker

in Small Carton

Packing into Master Carton

Final Checkup in Pairs, Art

No., Size & Price

Box Strapping

CHART NO.4



4.1.1.11 MACHINES IN PRODUCTION DEPARTMENT

The company is the implementation of Italian technology used by them for the

injection moulding process. Moulding process is the main activity and the key process

of manufacturing of quality footwear. The Company purchases Footwear Mould from

Italy, Taiwan and China. This will help the company to ensure high quality with

accurate size and good finish to the product

INJUCTION MOLDING MECHINE





4.1.1.12 VKC PRIDE

Art No: 243

Art No: 242

Art No: 2055

Art 3030



4.2 SALES DEPARTMENT

Marketing is the function of transferring of products from the point of

production to the point of consumption. Marketing include product, price, place and

promotion.

In VKC price of the product include cost plus percentage of profit. The product is

sold only to wholesalers for further sales. The packaging is done in a separate unit on

the basis of contract. That is the assembling unit which is far from the production unit.

4.2.1 MANAGER,NO.OF EMPLOYEES AND SALARY STRUCTURE

The Fortune Elastomers Mr. Honey markose is the sales manager. The

company is following on feedback from the market for the product planning process.

The vkc company is covered in 60% areas of Kerala. The vkc group is producing

seven types of footwear like, vkc pride, vkc lite, vkc stile, slip-ons, junior, trendz, vkc

smartak. The Fortune Elastomers are producing in vkc pride only. Under the sales

department 12 employees are working in the fortune elastomers , their salary structure

is 8000-15000. The vkc group is categorized on two types Division -1( out of Kerala)

and Division-2(Kerala only). The company is followed to selling their products in the

wholesaler. The wholesalers selling to the retailers, so that in the channel of

distribution is two. Vkc group is separated the territory in 6 zones, each zone has

supervisor. The company is providing in TA and the incentives paid on the basis of

total sales. Every working days the sales manager should be contacted the zone head

in the 2hrs interval.

4.2.2 SALES DEPARTMENT STRUCTURE

CHART NO.5


DEPARTMENT HEAD

EXECUTIVE

JUNIOR EXECUTIVE

SALES


4.2.3 MARKETING FUNCTION

The most widely accepted classification of marketing functions is given by clerk and

clerk. They have divided various marketing functions into three classes.

1. Functions of exchange.

2. Functions of physical supply.

3. Facilitating function.

4.2.3.1FUNCTIONS OF EXCHANGE

a) Buying

b) Assembling

c) Selling

4.2.3.2 FUNCTIONS OF PHYSICAL SUPPLY

a) Transportation

b) Storage and warehousing

4.2.3.3FACILITATING FUNCTIONS

a) Standardization and Grinding

b) Branding

c) Packing and packaging

d) Pricing

e) Marketing information

f) Product planning and development

g) Financing

h) Risk taking

i) Promotion



4.2.4 PRICE

4.2.4.1 Objectives of pricing

To maximize profit

To maintain or improve the market share

To achieve a desired rate of return on investment

To meet or prevent competition

To stabilize the product prices

To mobilize resources for development and expansion

To build image and enhance goodwill

4.2.4.2 Factors affecting pricing decision or pricing policing

Internal factors

Costs

Objectives

Organizational factors

Marketing mix

Product differentiation

Product life cycle

4.2.4.3 External factors

Demand

Competition

Distribution channel

General economic condition

Govt. policy

4.2.5 MARKETING RESEARCH

The pricing policy of VKC products is depends upon the material price. The price of

VKC footwears is affordable to all customers. The company is following on field

research and random sampling survey method is used for research. The sales



forecasting is based on the dealer’s opinion. Cost leadership strategy was adopted by

the company and competitive pricing method.

VKC product has to select an appropriate pricing method. It is selected after taking

into consideration. The cost customers perception regarding quality and value,

competitors price, govt. legislation etc.

To decide on the final price, some additional factors like consumer’s psychology.

Firms pricing policy impact of the competitors etc. must be taken in to consideration.

The pricing policy of VKC products is accomplished with quality, quantity, demand

etc in their products. Price is very important to both buyers and sellers. The buyers

always want to buy at very low price while the seller always desires to sell at a higher

price. So selling price is a complex problem to all organization. VKC sets the price

for the product by considering the following factors.

Pricing policy followed by competitors/price of competitive product.

Cost of production and distribution.

Price of different item in the product line

Distribution channels.

Business objectives

Demand for the product.

4.2.6 PRICE ADJUSTMENT STRATEGIES

After fixing the price, a manufacturer faces the problems of reduction in the prices

quoted. A difference between the price quoted and the net price charged is known as

price differential. The price reduction is made in the form of discounts, allowances,

rebates etc. VKC brings into use the following discounts

Trade Discount

Cash Discount



The company follows penetration pricing policy. Penetration pricing policy is

the pricing technique of setting a relatively low initial entry price. The expectation is

that the initial low price will secure market acceptance by breaking down existing

brand loyalties. Penetration pricing is most commonly associated with a marketing

objective of increasing market share or sales volume, rather than short term profit

maximization.

4.2.7 ADVERTISING MEDIA

The main advertising media used by the company are leading Newspapers,

Banners, T.V, Radio, Stickers, Slide show in Calicut District and company site

(www.veekesy.com). In 2011 January 14th, VKC gave a car for the prize winner of

Grand Kerala Shopping Festival. In this year the company was spend to 5 cores

rupees for only in advertisement.

4.2.8 DISTRIBUTION CHANNELS

Direct Distribution is made to those dealers who pay before the company and

direct distribution is done through the companies on their own vehicles. ‘VKC

footwear gets from dealer all over the Country.

The head of the department is the Marketing Manager. The marketing wing

consists of the marketing manager, sales man and sales representatives. The main

function of this department is canvassing orders and distribution of goods. Canvassing

of order is done through the appointment of sales representatives in each and every

place and through advertisement. VKC provided for the different marketing activity.

The R&D function is study about the related in footwear industries.

4.2.9 COMPETITION

It is a major determinant of marketing success of the company. There are

buyers and sellers. The company is facing stiff competitions from Rubco, Premier,

Lunar etc. In addition to this, there are hundreds of cottage industries that form a

major threat to the company.



4.3 HUMANRESOURCE DEPARTMENT

Human resources management is concerned with the people’s dimension in

organizations. An organization consists of number of personnel. Competent personnel

are to be appointed at right place at right time. Their activities are to be co-ordinate

and properly rewarded. Human resource management is concerned with all the

aforesaid activities. So the human resource management has a significant role to play

in the overall development of an organization. To put in simple words, human

resources management is a management function that helps managers to recruit,

select, train and develop members for an organization.

According to Edwin B Flippo, Personnel management/human resource

management is “the planning, organi zing directing and controlling of the

procurement, development, compensation, integration, maintenance and reproduction

of human resources, to the end that individual, organizational and societal objectives

are established.

4.3.1 HR DEPARTMENT STRUCTURE


JUNIOR EXECUTIVE

EXECUTIVE

DEPARTMENT HEAD

HUMANRESOURCE


CHART NO.6

4.3.2DUTIES&FUNCTION OF HUMAN RESOURCE MANAGER

Human resources is one of the most important and valuable assets in each

every modern organization. The success and failure of a business depends on a

efficiency of its workers. H R department deals with salary, wages, attendance,

overtime, leave and the particulars relating to the contribution to employee’s

provident fund, employees state insurance, accident fund.

4.3.3 MANAGER,NO.OFEMPLOYEES, SALARY STRUCTURE

Mr.praveen he is the HR manager of the Fortune Elastomers. Under this

department total 5 peoples are working. The wage structure is 8000-15000.

4.3.4 METHOD OF RECRUITMENT

The company is using newspaper and internet by the recruitment method,

mainly the company is choosing Hindu newspaper for the ads and. The company

provides canteen facilities, educational facility, medical reimbursement, TA,

accommodation facility, maternity and paternity leave, ESI, festival advance, bonus

and terminal benefits. The punishment is very rare in the company; the company is

looking for the performance of the each employees. If anyone is doing continuously

poor performance the management will terminate them. There is no trade union in the

company. For this result there is no labor strike.



4.3.5 The major functions of HR manager as follows

1. Human Resource planning - It is related with the determination of the number of

personnel required in an organization.

2. Job analysis and design - Job analysis is a detailed and systematic study of jobs to

know the nature and characteristics of the people to be employed in different kinds of

jobs.

3. Recruitment and selection - Recruitment is a positive process of searching the

required qualified person and stimulates them to apply for jobs in the establishment.

In VKC, recruitment is carried out at head office, according the need of workers in

any of the units.

4. Training and development -Human Resource department is responsible for giving

proper training to employees to acquire new knowledge and skills.

5. Employee & executive remuneration - Every human resource manager is entrusted

with the responsibility of establishing equitable wage and salary structure on one hand

and maintaining an equitable labor cost on the other.

6. Health and safety - Human Resource manager should take proper measure to protect

the workers against industrial accidents.

7. Motivating the workers, to enhance their productivity.



4.3.6 MPORTANT STEPS USED IN VKC FOR SELECTING

CANDIDATES

1. Receipt and scrutiny of application

This is the first step used in VKC FOOTWEAR for selecting candidates. The

vacancies it will be notified in newspapers, and notice boards etc. After receiving the

application from candidate, the personal department makes detailed scrutiny of their

applications and select qualified applications.

2. Preliminary interview

It is the basic interview conducted by the company. It done through telephonic

interview. It help the organization to find out, how much the candidates are fit for the

job and the educational qualification, age, sex etc of the candidates.

3. Interview

Interview is a face to face talk between employer and applicants. It is an oral,

observational appraisal method of evaluating the applicant.

4. Checking reference

The candidates are required to write the name of respected and reputed person in that

locality. So the employer can conduct enquires about candidates from these

references, to know their background, skill, work experience and character.

5. Approval of the supervisor

The name and details of the candidate selected is sending to the supervisor for

approval.

6. Final selection

After completing all the above formalities, the successful candidates are given

appointment order.

4.3.7 QUALIFICATION OF THE WORKERS.

All the employees working in HR, finance, marketing & materials department are

graduates. The workers in production department are qualified and they have special

knowledge and experience in footwear manufacturing.



4.3.7 PROMOTIONS.

It is one of the most internal sources of recruitment. The employees will work hard if

they know that they will get promotion. It provides motivation and inspiration to all

employees.

According to Edwin B Flippo, “a promotion involves a change from one job to

another that is better in terms of status and responsibilities”.

4.3.7.1 Basis of Promotion

There are mainly two basis of promotion namely seniority basis (time) and basis of

competence (merit or performance). The company is followed on the performance

basis promotion. Every months ending the HR manager was preparing in a report of

the all employees. This report is send to the top level management, they are studied

the report and taking the decisions.

4.3.8 TRAINING & DEVELOPMENT.

Training is the process of increasing the knowledge and skills for doing a

particular job. It is an organized procedure by which people learn knowledge and skill

for a definite purpose.

That is, training is a systematic programme of the organization which aims at

increasing the aptitudes, skill and abilities of the workers to perform specific job. By

training, the employee can acquire new manipulative skills, technical knowledge,

problem solving abilities etc.

According to Edwin. B. Flippo, “Training is the act of increasing the

knowledge and skill of an employee for doing a particular job”.

The main purpose of training is to bridge the gap between job requirements and

present competence of an employee.

4.3.8.1 IMPORTANCE OF TRAINING.

It helps to improve workers efficiency and productivity.

It helps to reduce wastage.

Reduce the supervision cost.

Reduction in employee grievances



Reduce accidents and breakdown

Reduce labor turnover and absenteeism etc.

Personnel development

Provide a good organizational climate.

Full fill the future requirement.

Leadership and motivation training conducted for management development

(the company was selected outsider for this training)

4.3.8.2 TYPES OF TRAINING.

VKC footwear gives different type of training to new employees. The following are

the important types of training.

1. Orientation training.

This type of training is provided to new employees. A new employee is to be

introduced in the organization. The information about the location of various

departmental offices, cafeteria, and other facilities are to be given. He is also to be

introduced to superior and subordinates.

He should be given a full description of the job as he is expected to do. He is

also informed about the policies, procedures, rules and regulation. All those are

achieved through an orientation or induction programme.

2. Job training.

VKC footwear provided job training, to increase the knowledge and skills of

employees for improving the performance on the job. The workers are able to handle

machines, equipments and materials safety and correctly through this type of training.

Such type of training helps to reduce accidents, waste and inefficiency. It involves

mainly two methods such as on the job training and off the job training.

3. Safety training.



Company gives safety training to minimize accidents and damages.

4.3.8.1 METHODS OF TRAINING.

There are various methods for training. The management should select an appropriate

method which is suitable to the organizational needs. VKC FOOTWEAR following

on the job training method.

4.3.8.1.1 ON THE JOB TRAINING

This is the most effective method of training. Under this method the new

worker is placed on a regular job and training is given by his immediate supervisor at

the working place. The trainee learns by observing and handling the job. This method

of training proved to be a great success. Induction programme are also done the

company for the new employees.

4.3.9 COMPENSATION.

Salary or wages is one of the most important factors for developing and maintaining

good employer-employee relationship. To attract best talented persons, every

organization tries to have a good wage structure. The salary of a person determines

his status in society.

An employee should be compensated equitably for the services rendered to the

organization. The compensation is calculated by considering the following facts.

1. Nature of the job undertaken.

2. The relative value of the job.

3. The realistic worth or ability of an employee in performing job.

According to Wendell French, “Compensation is a comprehensive term which

includes wages, salary,

4.3.9.1 METHODS OF COMPENSATION.

The compensation method of the company footwear is;



1. Time wage system: - The sole footwear is produced under time wage system.

Under this system, worker is paid on the basis of time spent on the job. This method

does not give weight age to the quality of goods produced by the workers.

Vkc footwear always maintains good employer-employee relationship. Good labor

relation ensures the smooth flow of work without any hindrance. If the employees are

satisfied with the benefits provided by the company, there is no chance of labor strike,

labor absenteeism and labor resignation. In order to make better labor relation VKC

FOOTWEAR providing the following benefits.

A. MONITORY BENEFITS

Monitory benefits are those which can be measured in terms of money.VKC footwear

offered the following monitory benefits to employees.

a) Basic pay:-VKC footwear gives basic salary to its staff members depends upon the

service and efficiency of employees and minimum wage Act.

b) Festival Holiday Allowance:-These are the additional payments given to the

workers during festival occasions. So that workers can meet additional expenditure

arising in these seasons.

c) Bonus:-Bonus is the special payment made to the workers in addition to their

normal salary. These special payments are given to workers on year ending months or

any other special occasions. The amount of bonus will depends up on the amount of

company‟s profit.

d) Provident fund:-Company contributes to PF the same amount as provided by the

employees. The Government rate is (Basic salary +DA+Night allowance)*12%

e) Salary advances:-Company allows advance salary to employees without any

interest.

f) Overtime allowance.

g) Travel allowances.

B. NON-MONITORY BENEFITS

These benefits include all measures adopted to build labor relations other than

monitory measures, it includes the following.



Rent free accommodation: -Company provides rent free accommodation to

employees if they have not own house near the factory.

Moreover the company gives the following perquisites to its workers,

Subsidized food

Company provides food to the staff with a subsidiary of 50% on the rate.

Footwear

The company provides footwear to all employees, especially in all festival time.

Leave granted to the employees

a) Weakly off

Company offers one day leave for every six days work.

b) Annual leave

Company allowes15 days leave to the staff with full pay within a year.

4.3.10 EMPLOYEE OR INDUSTRIAL SAFETY.

Industrial safety or employee safety refers to the protection of workers

from the danger of industrial accidents. Industrial safety is one of the important

responsibilities of the management in the modern industrial set up.

One of the major problems faced by an industrial worker is accidents. VKC

footwear undertaking the following measures to prevent the accidents.

a. Proper training and education.

b. Control of hazardous conditions.

c. Control of unsafe acts.

d. Timely repairing of machines and equipments

To ensure the safety of Workers Company providing safety goggles, glows, mask,

shoes etc. Moreover company providing various facilities to workers. They are,

Proper lighting: - Fluorescent lamp lighting is provided with in the factory.

Ventilation: - It is to ensure the maximum availability of fresh air.



Cool water

Company provided cool water at any time to the employees within the factory.

Seating

The company has provided seating facilities, to take relief while they are at work.

4.3.11 SAFETY RULES IN AN INDUSTRY.

Use the right tool for right job.

Use them in good condition.

Do not disturb the fellow workers.

Do not use loose clothes while machining.

4.3.12 COPERATIVE SOCIAL RESPONSIBILITIES

The concept of social security is related to the high ideals of human dignity and social

justice. It is primarily an instrument of social and economic justice.

To ensure the social security of workers VKC footwear contributing the,

4.3.12.1 Employee’s provident fund.

In the VKC footwear contributes PF from their employees and employers. The ratio

of PF is 12% of basic salary of employees and the employers giving to total 12%,

these one is divided into two a). 8.33% for employees’ pension b). 3.67% for

employees PF.

4.3.12.2E S I (employees safe/state insurance).

The ESI contributed by the employees in 1.75% ratios. Employers are

contributed in 4.75% ratio. The concept of ESI is useful for meet to employee’s

medical expenses. In the condition is any employee was affected in accident only in

the purpose of the company or any dangerous diseases. These cases the company is

allowed the ESI amount.

After six month the employees were appointed in the company the firm is

also considered the employees family for ESI (not in all members).

Every day the unit was arranged in a help desk. The aim of this one is to reduce

the grievance. If any employee was felt into any working problem the help desk is



giving a chance to tell his/her problem and the management giving in better solutions.

Mentoring activities conducting the company for empowerment, development and

distress of the workers.



4.4 MARKETING DEPARTMENT

According to American Marketing association, “marketing is the process of

the planning and executing the conception. Pricing promotion and distribution of

ideas, foods and survives to create exchange that satisfy individuals and

organizational objectives”

Marketing consists of all the activities, which create promote and distribute products,

services in accordance with presents and potential consumer demand and the firm’s

ability to produce. It involves identity, anticipating and satisfying consumer needs and

desire. In short, marketing is the process of providing the right products of the right

quality in the right quantity in the right places at eh right time.

4.4.1 STRUCTURE OF MARKETING DEPARTMENT

CAHART NO. 7


Marketing Manager

Channel Of Distribution

Manager

Assistant Manager

Market Research Manager

Advertaiemnt Manager

Sales Promotion Manager

Sales Executive

Assistant Manager

Assistant Manager

Assistant Manager


To be the best product in the market company is giving importance to the following

BRAND NAME : The brand name used for the product is “VKC PRAID”.

QUALITY : Quality of the products is the main marketing technique that

the company used.

ADVERTISING : The Company treats the advertising as the main mode of

marketing to improve the sales of their products. But in the case of VKC

PRAID, the advertisement is comparatively less. The brand image helps to sell the

product in the market.

4.4.2 SCHEMES:

One of the main marketing techniques of the company is the different Schemes

for their customers and dealers. WHOLSALERS MEET: The Company conducts the

Wholesalers Meet at least once in a year. By this the company provides an

opportunity to the wholesalers to interact with the company and between the dealers.

This helps to identify problems, sort out differences, and to formulate plans for future

improvement in the market. ORDER TAKING & COLLECTION: The Company

executives are directly taking the orders from the wholesalers. DELIVERY SYSTEM:

The Company has very good system for the supply of the products to the wholesalers.

The company had provided door delivery system and they are fixed a weekly chart for

the supply.

4.4.3 THE MARKETING TECHNIQUES USED ARE:

A) CHANNELS OF DISTRIBUTION

B) SALES PROMOTION

C) ADVERTISING

D) MARKET RESEARCH



A) CHANNELS OF DISTRIBUTION:

Channel of distribution is the set of marketing intermediaries through which the

goods flow from the producer to consumer. The company had provided the door

delivery system to the wholesalers for the distribution of products through their

owned vehicles and through the different transporters. The Channel of Distribution

followed by the Company is :

The company adopts a two level distribution system consisting of Wholesale dealer

and Retail dealer. The company is satisfied with the existing arrangements

B) SALES PROMOTION:

Manufacture

Wholesaler

Retailers

Consumers

Sales promotion plays a major role for the success of the VKC products. Sales

promotion influences the customers for buying the products and also helps to meet

competition. It popularizes the product so as to stimulate demand. Sales promotion

tools used are

Consumer promotion

Coupons

Demonstration

Contest

Price offer

Dealer promotion

Sales contest

Dealer gift

Turnover allowance



C) ADVERTISING & SCHEMES:

The VKC’s Advertising covers all activities connected with giving of publicity

regarding goods and services offered for sale. The main Medias for advertising are:

Indoor Media &Outdoor Media

INDOOR MEDIA

Tv Channels

News Papers

Magazines

Stickers, Calendars

OUTDOOR MEDIA

Name Board

Hoardings

TV CHANNELS:

Advertisements of the products of the company are given in all the major TV

channels in Malayalam. The Brand Ambassadors for the product is Cine Artist and

Models “Lakshmi Rathan, Raji, Aaru Nayar, Baby Sooraj and Silpa”

SCHEMES:

The company is providing different schemes for customers, retailers and

wholesalersduring seasons. This helps the company to gets the good results in sales

and publicity. Thecompany had already undertaken various schemes and contests lik

VKC SAMMANOTSAVAM

D) RESEARCH

Market research helps in analysing the buyer’s habits, popularity of a product,

and effectiveness of advertising media. It also helps to collect information about

marketing problems and opportunities. The continuous marketing research has been



conducted by the company which helps them in planning and executing marketing

strategies for the future course of action

4.4.4 THE PILLARS IN THE PATH OF SUCCESS OF THE FIRM is1. FOREIGN

TECHNOLOGIES:

The main advantage of the company is the implementation of Italian

technology used by them for the injection moulding process. Moulding process is the

main activity and the key process of manufacturing of quality footwear. The

Company purchases Footwear Mould from Italy, Taiwan and China. This will help

the company to ensure high quality with accurate size and good finish to the product.

4.4.5 EMPLOYEES OF THE FIRM:

The Company always maintains good employer-employee relationship. The

employees are well satisfied with the attitude of the management towards them and in

the facilities provided to them. So there were no labour strikes, labour absenteeism

and labour resignation. The company provides excellent training programs for the

employees to improve the skills and productivity with in a lesser time. The employees

are getting the statutory benefits like Bonus, ES scheme, Employees Provident Fund,

Festival Holiday Allowances from the company.

4.4.6 QUALITY OF THE PRODUCT:

Quality can be viewed as a weapon for competitive advantage, as a means of

profitability and a source of value for customers, investment in quality achieves

desired business results .Quality derives the productivity machine and leads the firm

to prosperity. Quality of product is the combined effort and cooperation of the entire

organization. Quality Management of VKC involves quality planning, quality control

and quality improvement which are cross functional in nature. The company has to

face keen competition in the market since there are numbers of footwear’s

manufactures in the country. The main factor, which determines sales, is the quality

of the products. The company produces good quality products and hence they are

capable of competing with others. VKC FORTUNE ELASTOMERS. PVT. Ltd. Has



succeeded in withstanding stiff competition from the parallel manufactures because of

the superior quality of their products at reasonable price.

4.4.7 ADVERTISING & MARKETING:

The advertisement of VKC’s product is of news of information concerning an ideas,

services or products to induce action which is suitable with the intent of the

advertiser. The advertisement given is based on the new trends in the market and

which are highly attractive by the customer. “Marketing is the process of providing

the right product of the right quality in the right quantity in the right place at the right

time”.

4.4.8 SKILLS

The term “skills” includes those characteristics, which people use to describe a

company. Organization have strengths in a number of area but their key strengths are

dominant skills are few. These are developed over a period of time of the result of the

interaction of a number of factors performing certain tasks successfully over a period

of time, the kind of people in the organization, the top management style, structure,

the management systems, the external environmental influence etc. Hence when

organization makes a strategic shift it becomes necessary to consciously build new

skills.

4.4.9 Classification of skill at VKC is as follows:1.

1.Top Management Skills:

Top management includes board of directors, secretaries and unit chief. Top

management skills includes balancing, integrating, setting, priorities, developing

standards, conceptualizing, leading, persuasive, and planning process.

2. Supervisory Management Skills:

It includes additional general manager, deputy general manager, senior manager and

manager. Every superior in the unit should have sound technical knowledge of his



field to proper instructions and guidance to operatives, accuracy in work, and

communication skill for interaction with the higher management.

3. Technical and Clerical Skills:

Technical skills are required from an individual as per the project requirements. For

technical skills employee should be engineer/diploma holder. For clerical work

candidates should B.Com/ BBM.

Candidates who have passed industrial training institute are engaged scheme under

trade apprentices’ for a year. Besides fulfilling the training requirements under the

apprentices act.

4.4.10 STYLE

The company employees share a common way of thinking and behaving.

Leaders establish unity of purpose and direction of the organization. They create and

maintain the internal environment in which people became fully involved in achieving

the organization policy.

4.4.10.1Top down style

In VKC management follows the top down decision making at the time of

taking any decision relating to management

.Board of directors and chief executive of the company give decisions about

the management relating problems of the company. The decision taken is flow from

top to down, (to Middle Level and Lower Level Management) in VKC they follow

the participative leadership in case of recruitment.

4.4.10.2 Participative leadership:

The head of the department takes some decisions there may by consulting the other

employees. In this type of leadership all the level of management participate in taking

decisions. In case recruitment A.M personnel department consult the entire

department head to take decision regarding recruitment of new employees.



4.4.11 STAFF:

It refers to the people working in an organization the company’s people

resources and how they are developed, trained and motivated. The process of staffing

includes various processes like recruitment and selection procedures, training etc. It

refers to how the people are developed, trained, socialized, integrated, motivated and

how the employees’ career is shaped in an organization.

4.4.11.1 Technical Staff: these are the staffs they are responsible for the work related

to technical aspects in this company the appointing well qualified and experienced

persons as technical staff. So these staff will have good knowledge about the working

environment.

4.4.11.2 Supervisory Staff: These are the persons who are in charge with supervising

the other employees in the organization. In this company they are employing

experienced staff as supervisor. so they can observe the fellow workers and guide

them as per the companies need. The experienced supervisors are one of the key

assets of this company.

4.4.11.3 Clerical staff: Clerical staff required for clerical work, clerical work need for

all organization for clerical staff required B.com/BBM



4.5 FINANCE DEPARTMENT

FUNCTIONS

Finance is the life blood of business enterprises, no business can function without a

proper financial management. The main functions of finance department are,

Investment decision or capital budgeting decision.

Capital structure decision.

Financial forecasting and planning

Record the day to day transactions.

Clearing the account of creditors and suppliers.

Preparation of final accounts.

Analyzing the financial position of the company.

Ensure the liquidity position of the firm to meet the current requirements.

NO.OF EMPLOYEES AND SALARY

In Fortune Elastomers Pvt.Ltd the accounting and finance functions are performed by

the manager with the help of accountant and office staff under the guidelines of

managing director. Mr.Trun Jagdish he is the financial manager of Fortune Elastomer

Pvt.Ltd. Total 6 employees are working under finance department. The salary

structure is 8000-15000.



4.5.1 FINANCE DEPARTMENT STRUCTURE

CHART NO. 8

The firm follows double entry system of accounting to maintain the accounts. All

the transactions are done by tally. Source of information for the accounting

department includes sales invoice and purchasing invoice etc. Authorized persons

from the board will verify all the records and vouchers. Compulsory audit also take

place at the end of every financial year.

4.5.2 PAYMENT COLLECTION, CREDIT PERIOD GIVEN TO DEBTORS,

MODE OF PAYMENT.

Every finance department has following the procedures for payments and collections

mechanism. Fortune Elastomers Pvt.Ltd. has get at most 14 days for payment

collection period and the company was provided the payment to debtors for credit

period at most 1 month. And also these all are dependent on the nature of vendors.

The cash budgets are introduced in every month not in annually. Tally accounting

software and excel is used for recording various transactions. Now the firm is doing

the installing process for SAP in all departments


JUNIOR EXECUTIVE

SENIOR EXECUTIVE

DEPARTMENT HEAD

ASST MANAGER


4,5,3 CAPITAL STUCTURE

Capital structure implies the preparation of debt and equity in the total capital of the

company. The authorized share capital of the company shall consist of Rs 40, 00,000

divided into equity share of Rs 10/ share, with power to increase or divide capital in

accordance with provisions of Company Act. Capital structure of Fortune Elastomers

Pvt. Ltd include share capital and bank loan.

4.5.4 The main responsibilities of finance department are following.

1. Financial planning.

Financial planning is the main responsibility of finance manager. It means to forecast

the needs and source of finance and then to plan for them.

2. Raising necessary funds.

Financial management is responsible for the supply of adequate funds for the smooth

functioning of an organization. Before deciding to raises funds from a particular

source a cost benefit analysis of various alternative sources must be made.

3. Controlling the use of funds

The financial manager is responsible for the proper utilization of funds. Asset must

use effectively so as to earn greater profit.

4. Appropriation of profit

Appropriation of profit is one of the main responsibilities of the finance manager. He

is to advice the top executive, how much of profit should be retained in the business

as a reserve.



4.5.5 REPORTS

1. DAILY REPORT

Cash book :- Records firms day-to-day cash transactions

Bank Book :- Records firms transactions with bank

Day Book: - Records firms day-to-day transactions.

Transaction Summary.

Credit note.

Debit note.

Receipt and payment voucher.

Journal Register, etc.

2. PERIODICAL REPORT

Trial Balance.

Bank reconciliation statement.

Bank interest computation.

3. ANNUAL REPORT

Trading and profit and loss account.

Balance sheet.

Cash flow statement.



4.6 MATERIALS DEPARTMENT

Purchase involves determination of requirements, finding the sources of

supply, placing the order and receiving goods. The total amount of goods produced by

a business concern both for cash and credit and is meant for sale is termed as

purchases.

The material department employees play a very important role in the company

and it has affected in every vital factor concerning the manufacturing of quality goods

efficiently and prompts delivery of goods to the customers. Its function is to procure

materials, supply services machines and tools at the most favorable terms consistent

with maintaining the desired standard of quality. Purchasing is the most important

function of material management because an order is placed for the companies

finance is committed which effects the cash flow position of the company.

4.6.1 OBJECTIVES OF THE MATERIALS DEPARTMENT

To make continuous availability of material so that there may be uninterrupted

flow of material for production

To make purchase competitive and wise at the most economical price.

To make purchase in reasonable quantities to keep investments in material

minimum.

To purchase proper quality of material to have minimum possible wastages of

material and loss in production.

To develop supplier relationship this will ensue the best terms of supply of

materials.



4.6.2 MATERIALS DEPARTMENT STRUCTURE

CHART NO.8

4.6.3 MANAGER, NO.OF EMPLOYEES AND SALARY STRUCTURE

Mr.sudheesh he is manager of materials department. Under this department total 10

employees are working. 5 persons are working in purchasing duties and another 5

persons are working. The salary structure of materials department is 8000-15000.

4.6.4 PROCEDURE FOLLOWED IN PURCHASES

1. Intending for material

2. Exploring of source of supply

3. Purchase order

4. Receiving of inspecting material.

5. Checking and passing bills for payment.

When the company plan is like producing in new products some other procedures are

in there. The process of raw materials order to finished goods it will take in 1 month.

The first 15 days for transportation of raw materials from suppliers to company and

the remaining 15 days will take to production process.


JUNIOR EXECUTIVE

EXECUTIVE

DEPARTMENT HEAD

MATERIALS


4.6.5 FACTORS CONSIDERED WHILE SELECTING SUPPLIERS

Manufacturing capacity

Reliability of the supplier

Financial condition of the suppliers

The management of the supply firm

Price quoted and quality

Quantity for which price quoted is applicable

Terms of the payment

Terms of delivery

Specifications to which the products are manufactured

4.6.6 DOCUMENT USED IN PURCHASE

The company was used in invoice, quotations for the documentation and the excel

also using.The relationship of suppliers and company is good.so the suppliers are

giving the payment time to the company is 1 month. The main suppliers of the

company are the following.

1. SUPPLIERS OF SYNTHETIC

Mayur

United decorate

Winner

Polynova

Jindal

2. SUPPLIERS OFBUCKLES

Unity

Metalica

3. SUPPLIERS OF TAPES

Albin

Elatto

4. SUPPLIERS OF HOOKS AND LOOPS



Sky

4.6.7 MAIN DEALERS OF THE COMPANY

Saleem brothers

AKM agencies

Vicky agencies

AK agencies

Surabhi traders

4.6.8 FUNCTION

Material department functions a major role in attaining quality of products.

Material department has its own Godown for keeping the raw materials. Raw

materials purchasing is mainly alone from permanent suppliers. The main function of

purchase process is purchasing quality raw materials at the reasonable rates, at the

right time and at the right quantity.

4.6.9 STOCK LEVEL MAINTENANCE

The main functions of the stores department are to be maintaining the adequate level

of goods for the easy flow on the basis of demand. The store keeping method is first

in first out method. The stock level maintenance is depends upon the product basis. If

the company was produced in new product the maximum stock level is 250 units.

These ones are introduced in the market and the company was conducted in research 1

week to 10 days after that another 250 units produced and what about the result in the

research report on that basis the management was decided to it will produce or not. In

the case of existing products storing is depends upon the stock level or the demand.

Verification of the stock is within the help of barcode system. Fifo techniques are

following to the inventory system.



CHAPTER-5

SWOT ANALYSIS



SWOT ANALYSIS

Strengths, Weakness, Opportunities, and Threats

1. Strengths (internal)

The company functions at its own land and building.

The company is profit making.

The employee-employer relationship good.

In Kerala company has 60% of market share.

Well advanced machines are installed in the company.

Loyal customers.

Attracts elite class with its elegant as well as classic style.

Strong brand equity.

2. Weakness (internal)

Lack of training.

There are no contract workers.

The sales process is manufacture to wholesalers only.

There is no direct marketing and e-business.

3. Opportunities (external)

Govt. policy to promote footwear industry

Expanding footwear market.

Acquiring more market share in integrating with current entities involved in footwear

business.



4. Threats (external)

The competition is huge in this industry.

The govt. is promoting in small scale units.

The competitors are in doing the e-business.



CHAPTER-6

SUMMARY OF ANALYSIS AND SUGGESTION



SUMMARY

This company is led by skilled personals. The production department of the

company is well functioned and updated as need of market from time to time. The

company produces footwear for gents, ladies and kids. Through the efficient

departments of the company it can make top most position in marketing field. The

human resource department gives proper learning to workers that minimize the error

of production. The materials department purchases quality raw materials for better

production. The company would attract the market only by the quality and brand

reputation.

The fortune elastomers are the one unit of VKC group. The firm is running on

successfully. The total production estimated for this year is 51.6 lacks. The authorized

share capital of the company consists of rupees 4000000 divided into equity share of

RS.10/share. The firm has in five departments for their business functions. Each

departments is doing their jobs and duties in up-to-date and clearly.



SUGGESTIONS

Latest technology should be introduced in the production process so as to maintain

the standard quality and also to manufacture at a reduced cost.

Symbol of the VKC footwear looking like in an old model. So just modified to

them in attractively.

The VKC should be adapting to direct marketing and E-business, it will be

making more profit and wide market.

Today the demand of PVC footwear is almost decline, therefore to be conduct the

innovation for the PVC footwear.

To be introducing franchise business ideas. It will be making more profit and

Standard.

The VKC footwear advertisement is not much popular in the north India, so to be

increase the media advertising.

The brand name only most popular in the Kerala and south Indian people ,

therefore more concentrate the marketing strategies in North India and abroad.

VKC shoes is not good market leaders.so taking new marketing strategies for

shoes section.

The quality of Hawaii chapels should be improved so as to enable very good sales

and profit; Advertising is required to boost up sales.

Manufacture should provide gifts for the whole sales and retailers so as to achieve

the desired target.

Selling price variation should be avoided by the wholesalers and retailers.

It is better to change the assembling unit near to the production unit to avoid

unnecessary costs.

Try to achieve more international quality certificates.



CHAPTER-7

STUDENTS LEARNING EXPERIENCE



7.1 LEARNING EXPERIENCE

The fortune elastomers are the one unit of VKC group. The company is private sector

so that the availability of all data’s is not be possible like in the finance department.

Mrs. Srudhi sreedar was in my guide in this project. She was given to me in the

almost information’s and instructions and also Mr.subair in the shift engineer of

production department he was also helped to me in the production unit. The company

is a reputed one in Kerala.

How the production department to their production planning , process schedule ,

product design , assembling and the conversion of raw materials into product.

The work area , department , overview surrounding of the layout are kept clean

and hygienic way.

There was a healthy relationship maintained between employees, suppliers,

distributors and management of the company.



BIBLIOGRAPHY

A.Vinod, Marketing Management, Central Co-operative Stores Ltd.

No.4347, revised edition, Kerala, 2008.

Man Mohan and S.N.Goyal, principles of management accounting,

Sahiya Bhavan, Agra, 2002.

Prasamma Chandra, financial management, Tata Me. Graw- hill

publishing company, fourth edition New Delhi , 2002.

Shasi.k.Gupta, Financial management, Kalyani publishers, Rajinder

Nagar, Ludhiyana, 2004.

Company records

WWW.VEEKESY.COM


http://WWW.VEEKESY.COM/


ROUTE MAP

9 Km

NH-17 1

2 3

Kozhikode Mofussil Bus Stand

4

Kozhikode Railway Station

1. SAIL

2. FORTUNE ELASTOMERS PVT. LTD

3. PEEKAY STEELS PVT. LTD

4. Kozhikode RAILWAY STATION

5. Kozhikode Mofussil Bus Stand


