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1. INTRODUCTION

TITLE OF THE STUDY

This study is titled as “AN ORGANIZATIONAL STUDY AT KSIC (KARNATAKA SILK

INDUSTRY CORPORATION)” MYSORE.

1.1. OBJECTIVES TO STUDY:

PRIMARY OBJECTIVE

To know the working of the different departments in the organization.

SECONDARY OBJECTIVE

To put theoretical knowledge into practical experience.

To know the growth and present statues of KSIC.

To know the strength and weakness of KSIC Ltd.

1.2. SCOPE OF THE STUDY

A well organized effectively formed organization forms the base stone of every

successful business. The project study on organization provides an excellent opportunity for

experiencing and understanding the organization. This also enables the student to find out the

correlation between the theory and real business. The project helps in developing the internal

abilities and interpersonal skills and thereby encourages the capabilities of the student. The study

helps to find out the working of different.

1.3. METHODOLOGY

SOURCES OF DATA COLLECTION

1. Primary Data

Primary data were acquired mainly through direct observation of various functions in the

organization and through interaction and communication through unstructured interviews with

the concerned department heads and officials of the organization.

JAIN SCHOOL OF BUSINESS, BANGALORE Page 1

2. Secondary Data.

Manuals

Past records

Website

Information is collected to know the organization structure and its working and SWOT analysis

has been done.

1.4. LIMITATIONS OF THE STUDY:

The study was restricted only for 12 days. Due to time constraint an in depth study of all

the departments was not possible.

In the study only the general organization study has selected.

Since the managers were busy with their work schedules it was not possible to spend

more time with them for discussion.


INDUSTRY PROFILE

It is said that silk was discovered during 2640 B.C. in China. Chinese Empress, Ling Shi

studied the silkworm and learnt the art of unwinding the silk from the cocoon and made silk

fabric from it. This was the beginning of the silk industry in China.

Though India is the second largest silk producer in the World after China, it accounts for

just 5% of the global silk market, since the bulk of Indian silk thread and silk cloth are consumed

domestically. Germany is the largest consumer of Indian silk. The sericulture industry is land –

based as silk worm rearing involves over 700,000 farm families and is concentrated in the three

southern states of Karnataka, Tamil Nadu and Andhra Pradesh.

The present market context for silk in India is one of vigorously growing internal demand

for silk fabrics, with growth rates of above 10% per year. It is mostly for traditional (sari type)

design and does not impose sophisticated quality requirements upon the industry. This situation

is likely to continue, unless Indian sericulture is able to provide sufficient quantities of raw silk

at affordable prices. The present trends represent a limitation to price increases for silk produced

in India

Other silk producing countries are China, Brazil, Korea etc. it also appears unlikely that

the present demands can be met merely by expanding mulberry area in order to increase cocoon

and raw silk production. Future additional output is raw silk will therefore mostly have to come

from substantial productivity increases, mainly area and labour productivity.

Currently there is a growing demand for silk fabric among the growing Indian middle

class and young urban consumers. These modern silk fabrics typically are produced by the

expanding power loom weaving industry. The quality requirements imposed by this trend can

only be met by bivoltine raw silk for conventional power looms. The bulk of today’s world

export demand is almost exclusively based on high graded quality bivoltine raw silk. If Indian

sericulture is unable to generate a substantial production of bivoltine raw silk, these important

market segments will continue to be lost outside competitors.


The three main market segments offer great opportunity to India’s silk industry:

i. The broadening domestic traditional demand multi bivoltine based.

ii. The domestic demand for non – traditional silk fabrics, based at least partly on non-

graded bivoltine.

iii. The vast and expanding international market for raw silk, silk fabrics and

readymade, based on graded bivoltine silk, an export potential as yet relatively little

exploited by India.

In one of the efforts of the Indian Government to promote the sericulture Industry, the

National Sericulture Project (NSP) was initiated as a national project operational in 17 states in

India. The projected funded by the Central and the State Governments together with an input of

foreign funds, has a credit portion from the world bank and a grant contribution from Swiss

Development Corporation. The project was started in 1989 for a period of six years with the

objectives oriented toward increased production, improved productivity, quality and equity. One

of the critical elements taken into consideration by the project was the dominant involvement Of

the Central and State Government Organizations in the promotion of sericulture.

GLOBAL SCENARIO

The history of development in World Textile industry was started in Britain as the

spinning and weaving machines were invented in that country.

High production of wool, cotton and silk over the world has boosted the industry in

recent years. Though the industry was started in UK, still in 19th Century the textile production

passed to Europe and North America after mechanization process in those areas. From time to

time Japan, China and India took part in industrializing their economies and concentrated more

in that sector.

Japan, India, Hong Kong and China became leading producers due to their cheap labour

supply, which is an important factor for the industry.


http://www.economywatch.com/world-industries/textile-industry.html

http://www.economywatch.com/world_economy/china/

http://www.economywatch.com/world_economy/hong-kong/

http://www.economywatch.com/indianeconomy/

http://www.economywatch.com/world_economy/japan/

Global Textile Scenario

According to statistics, the global textile market possesses a worth of more than $400

billion presently. In a more globalize environment, the industry has faced high competition as

well as opportunities. It is predicted that Global textile production will grow by 25 percent

between 2002 and 2010 and Asian region will largely contribute in this regard.

WTO In Textile Industry

The (WTO) has taken so many steps for uplifting this sector. In the year 1995, WTO had

renewed its MFA and adopted Agreement on Textiles and Clothing (ATC), which states that all

quotas on textile and clothing will be removed among WTO member countries.

However the level of exports in textiles from developing countries is increasing even if in

the presence of high tariffs and quantitative restrictions by economically developed countries.

Moreover the role of multifunctional textiles, eco-textiles, e-textiles and customized

textiles are considered as the future of textile industry.

INDIAN SCENARIO

India is now a fast emerging market inching to reach half a billion middle income

population by 2030. All these factors are good for the Indian textile industry in a long run. Even

though the global economic crisis seems to be worsening day-by-day, as long as economies are

emerging and growing as those in South and South East Asia, textile industry is here to grow

provided it takes competition and innovation seriously.

It has been recently reported that textile exports in 2009-10 period will be equal or could

be even lower than the one achieved in 2008-09. In this global financial meltdown situation,

what should the Indian textile industry do? In the times of adversity, it is an immediate task for

all stake holders to pause for a moment and take stock of the difficulties and chart plans for

sustainability and growth of the Indian textile industry.


Road Ahead for the Indian Textile Industry

As the saying goes in the financial sector, it is not advisable to put all eggs in one basket.

This is what happened somewhat in the case of the Indian textile industry. With the opening of

world markets and the abolition of textile quotas since 2005, there came a negative situation as

well. But, hindsight is always 20-20.

Indian textile industry should have focused on all major sectors right from fiber to

fashion and planned for an organized growth across the supply chain so as to compete with

China and even countries such as Pakistan, Vietnam and Thailand. Instead, the industry had put

majority of its stock in the spinning sector. This is clearly evident in the utilization of

Technology Up gradation Fund Scheme effectively by the spinning sector. Although it is a

positive outcome, in my opinion, the industry turned a blind eye on value-adding sectors such as

weaving and finishing. Indian power loom sector, which enables value-addition is a highly

unorganized industry and needs major up gradation.

Not only India does not have world quality indigenous shuttle less looms, but also

investments are not adequate to cope with the quality and quantity to cater to the export market.

Technical textiles sector is still in its infancy and a tangible growth will be highly visible by

2035 when the growth in this sector will be exponential.

Indian Textile Industry has some inherent strength

Tradition in Textiles and long operating experience

Large and growing domestic market

Strong raw material base

Production across entire textile value chain

Stable, low-risk economy, safe for business growth

Easy availability of abundant raw materials like cotton, wool, silk, jute

Widely prevalent social customs

Variety of distinct local culture

Constructive geographic and climatic conditions


Weakness

Massive Fragmentation:

A major loop-hole in Indian textile industry is its huge fragmentation in industry

structure, which is led by small scale companies. Despite the government policies, which made

this deformation, have been gradually removed now, but their impact will be seen for some time

more.

Political and Government Diversity:

The reservation of production for very small companies that was imposed with an

intention to help out small scale companies across the country, led substantial fragmentation that

distorted the competitiveness of industry. However, most of the sectors now have been de-

reserved, and major entrepreneurs and corporate are putting-in huge amount of money in

establishing big facilities or in expansion of their existing plants.

Secondly, the foreign investment was kept out of textile and apparel production. Now, the

Government has gradually eliminated these restrictions, by bringing down import duties on

capital equipment, offering foreign investors to set up manufacturing facilities in India. In recent

years, India has provided a global manufacturing platform to other multi-national companies that

manufactures other than textile products; it can certainly provide a base for textiles and apparel

companies.

Despite some motivating step taken by the government, other problems still sustains like

various taxes and excise imbalances due to diversification into 35 states and Union Territories.

However, an outline of VAT is being implemented in place of all other tax diversifications,

which will clear these imbalances once it is imposed completely.

LabourLaw:

In India, labour laws are still found to be relatively unfavorable to the trades, with

companies having not more than ideal model to follow a 'hire and fire' policy. Even the

companies have often broken their business down into small units to avoid any trouble created

by labour unionization.


In past few years, there has been movement gradually towards reforming labour laws,

and it is anticipated that this movement will uphold the environment more favorable.

Distant Geographic Location:

There are some high-level disadvantages for India due to its geographic location.

For the foreign companies, it has a global logistics disadvantage due the shipping cost is higher

and also takes much more time comparing to some other manufacturing countries like Mexico,

Turkey, China etc. The inbound freight traffic has been also low, which affects cost of shipping -

though, movement of containers are not at reasonable costs.

Lack of trade Membership:

India is serious lacking in trade pact memberships, which leads to restricted access to the

other major markets. This issue made others to impose quota and duty, which put scissors on the

sourcing quantities from India.

Opportunities

It is anticipated that India's textile industry is likely to do much better. Since the

consumption of domestic fiber is low, the growth in domestic consumption in tandem is

anticipated with GDP of 6 to 8 % and this would support the growth of the local textile market at

about 6 to 7 % a year.

India can also grab opportunities in the export market. The industry has the potential of

attaining $34bn export earnings by the year 2010. The regulatory polices is helping out to

enhance infrastructures of apparel parks, Specialized textile parks, EPZs and EOUs.

The Government support has ensured fast consumption of clothing as well as of fibre. A

single rate will now be prevalent throughout the country.

The Indian manufacturers and suppliers are improving design skills, which include

different fabrics according to different markets. Indian fashion industry and fashion designers are

marking their name at international platform. Indian silk industry that is known for its fine and

exclusive brocades, is also adding massive strength to the textile industry.


The industry is being modernized via an exclusive scheme, which has set aside $5bn for

investment in improvisation of machinery. International brands, such as Levis, Wal-Mart, JC

Penny, Gap, Marks & Spencer and other industry giants are sourcing more and more fabrics and

garments from India. Alone Wal-Mart had purchased products worth $200mn last year and plans

to increase buying up to $3bn in the coming year. The clothing giant from Europe, GAP is also

sourcing from India.

Anticipation

As a result of various initiatives taken by the government, there has been new investment

of Rs.50, 000 crore in the textile industry in the last five years. Nine textile majors invested Rs.2,

600 crore and plan to invest another Rs.6, 400 crore. Further, India's cotton production increased

by 57% over the last five years; and 3 million additional spindles and 30,000 shuttles-less looms

were installed.

Forecast till 2010 for textiles by the government along with the industry and Export

Promotion Councils is to attain double the GDP, and the export is likely attaining $85bn. The

industry is anticipated to generate 12mn new jobs in various sectors.

Table showing the India’s Competitiveness with Other Country

Key countries / regions Key positives Key negatives

China Efficient, low cost, vertically integrated

Growth at the cost of profits

India, Pakistan Vertically integrated, low cost Lacks economies of scale and infrastructure support

Mexico (NAFTA), Turkey Proximity to market, duty and quota free

Lack China and India’s degree of competitiveness

ASEAN (Vietnam, Cambodia, Indonesia)

Cheap labor No other cost or location advantage

AGOA (African) countries, Bangladesh

Quota and tariff free, cheap labor

Lacks integration and China and India’s degree of competitiveness

Hong Kong, Korea, Taiwan Trading hubs proximity to No cost advantage, protected


China currently by quotas

USA and EU Non-quota barriers likely to prove irritant to imports

US$ 400 bn trade loss likely

Source - Industry, I-SEC Research

KEY PLAYERS IN THE INDUSTRY

1. Kalyan Silk

2. Chennai Silk

3. Seemati Silks

4. Kanchipuram silk

PEST ANALYSIS

In order to analyze the environmental aspects of KSIC, PEST analysis will be used.

PEST Stands for Political, Economic, Social and Technological factors that influence overall

performance in the market place.

Political Factor

A company will not be able to gain success, good reputation and trust if it will not

consider legal and political sector as part of their strategy. KSIC has been able to follow

the principles of business ethics. Hence, the company considers legality in all their

actions. They make sure that all their products and services adhere to the standards and

wills satisfy their client worldwide. Politically, KSIC had been able to follow all the

standards set by the country and other international organization satisfies their customers.

Economic Factor

Economically, it can be said that throughout the years, KSIC had enjoyed being at

the top of its competitors. The economic status of KSIC is highly remarkable that it

always give its consumers the best and quality products and services in the two business

divisions. In addition, the company’s growth and expansion on different countries in the

world is an obvious evidence that KSIC has been able to have a stable economic capacity

to sustain and maintain its competitive position in the market place.


Social Factor

Culture is an important factor in understanding an industry, because for any

organization to operate effectively, it must for some extent have a general set of believe

and assumptions on how culture will influence the productivity and the success or failure

of any company. Culture environment is one of the important principles that influence the

organization. Hofstede (1991) identifies that there are four dimensions that differentiate

cultures at a national level (power distance, individualism-collectivism, masculinity-

femininity, uncertainty avoidance), which help to understand that people arrive to

organizations with their own national culture.

In the KSIC, the management sees to it that they value the opinion of their

employees no matter what is their culture. It cannot be denied that they need employees

from different cultures to be in the company to help in the decision making. Moreover,

the management of the company has seen to it that they would be fair in treating all their

employees. In addition, as mentioned earlier, the company sees to it that their social

commitment is being achieved by satisfying the consumers with their quality products

and service. Herein, the company values the consumer by knowing their demands and

providing their demands and in material products.

Technological Factor

The complexities of achieving business success through increased efficiency,

effectiveness and competitiveness, combined with innovative applications of modern

technology. They also use the purpose of information technology by creating their own

website to let their consumers have an easy access of knowing the company and the

products and services that the company has made for them.

POTER’S 5 FORCES ANALYSIS

The most influential analytical model for assessing the nature of competition in an industry is

Michael Porter's Five Forces Model, which is described below:


Porter explains that there are five forces that determine industry attractiveness and long-run

industry profitability. These five "competitive forces" are:

1. The threat of entry of new competitors (new entrants)

2. The threat of substitutes

3. The bargaining power of buyers

4. The bargaining power of suppliers

5. The degree of rivalry between existing competitors

THREAT OF NEW ENTRANTS:

New entrants to an industry can raise the level of competition, which may cause in reducing its

attractiveness. The threat of new entrants largely depends on the barriers to entry. In textile

industry it is not easy to enter because of need of heavy investment.

For new entrant it very big challenge for them to establish business because it require huge

amount of capital and investment and man power.

THREAT OF SUBSTITUTES:

At present there are no substitutes to textile and there will be substitute for at least the next

ten years. Hence the company need not worry about the threat posed by substitutes.

BARGAINING POWER OF BUYERS:

Buyers are the people who create demand in an industry. The bargaining power of buyers in an

industry is greater when:

There are few dominant buyers and many sellers in the industry but in textile industry buyer

are more and sellers are few and there is huge government intervention and no bargaining

power of buyers lies.

INTENSITY OF RIVALRY:

The intensity of rivalry between competitors in an industry will depend on:


The structure of competition – In textile industry there are few equal size small and large

competitors so, rivalry is there but not more intense.

Degree of differentiation – In textile industry there is less product differentiation, and since

this sector has huge government intervention so intensity of rivalry is less.

Strategic objectives – In textile industry competitors are not pursuing aggressive growth

strategies, Price rise in textile related products have lessened the burdens on industries. Few of

the companies are making windfall gains rivalry is not more intense.

2. COMPANY PROFILE

HISTORY


The silk weaving factory in Mysore, presently owned by KSIC, was established in

the year 1912 by the Maharaja of Mysore province. Initially the silk fabrics were

manufactured and supplied to meet the requirements of the royal family and ornamental

fabrics to their armed forces.

The unit was started with 10 looms and gradually increased to 44 looms over a

period. The looms and preparatory machines were imported from Switzerland and was

the first of its kind in India. After India gained Independence the Mysore state Sericulture

department took control of the silk weaving factory.

KSIC Ltd was established on 18 April 1980 with assistance by Government and

World Bank scheme under integrated Karnataka sericulture project. KSIC is the only

organisation in the country comprising the entire gamut of silk production right from the

reeling of cocoons to the weaving of pure silk fabrics.

In 1980 the silk weaving factory was handed over to Karnataka Silk Industries

Corporation Ltd., a of Karnataka enterprises and is popularly known as KSIC. The

takeover was enthused by effecting modernization and expansion assisted by the World

Bank to the tune of Rs. 27.30 crores integrated under Karnataka sericulture project.

Mysore is rich for its Royal heritage and Grandeur and it is no surprise that the

silk produced there reflect the traditional splendor through its rich yet delicate motifs.

The name Mysore silk is a befitting tribute to its ancestry. KSIC the proud inheritor of

this royal legacy, has treasured it for over seven decades, has been producing 100% pure

silk with pure gold zari.

We are in the business of manufacturing quality silk products of varied designs

for end user consumption. The products include finest of designer silk sarees, salwar

kameez, shirts, kurta’s, silk dhoti and men’s tie. The silk products are manufactured in

our factory located in Mysore district of Karnataka state.

The silk weaving factory in Mysore, presently owned by KSIC, was established in

the year 1912 by the Maharaja of Mysore province. Initially the silk fabrics were


manufactured and supplied to meet the requirements of the royal family and ornamental

fabrics to their armed forces

COMPANY VISION AND MISSION

VISION:

To be the market leader in manufacturing silk saree’s and to provide employment directly

and indirectly.

MISSION:

“Manufacturing and marketing of Mysore silk sarees”.

OBJECTIVE

1. To generate quality fabrics.

2. To generate employment.

SWOT ANALYSIS:

STRENGTHS:

1. KSIC is a public limited company.

2. KSIC obtained the certificate of geographical indication for Mysore silk, elevating it to a

brand name for an exclusive use.

3. KSIC uses only high quality pure silk and zari.

4. KSIC have a patent right of Mysore silk brand.

5. The KSIC will also be coding every saree.

6. The code will contain the name of weaver and date of weaving. In case of complaints, the

weaver can be traced immediately.

WEAKNESS:


1. There are many highly competitive companies in the market.

2. More than 45 dealers in Bangalore were misusing the name of Mysore silks.

3. Other silk products are sold in the name of Mysore silks.

4. Limited production of saree’s.

OPPORTUNITIES:

1. Exports the silk products to other countries.

2. Providing employment opportunity for rural people.

3. Employees will get PF, ESI, minimum bonus and gratuity benefits.

4. Giving apprenticeship training for workers.

THREATS:

1. KSIC found that more than 45 dealers in Bangalore were misusing the name of

Mysore silk.

2. Rise in cost of silk.

3. Rise in cost of production.

GROWTH AND DEVELOPMENT

The Karnataka Silk Industries Corporation (KSIC) has been awarded the certificate of

Geographical Indication for Mysore Silk, elevating it to a brand name for its exclusive use. It’s

now official; Mysore Silk belongs to Mysore district.

The Karnataka Silk Industries Corporation (KSIC) has been awarded the certificate of

Geographical Indication for Mysore Silk, elevating it to a brand name for its exclusive use.

Henceforth, all Mysore Silk sarees sold by the KSIC will come with the logo IPI, meaning

Intellectual property India.

KSIC is also the first state government enterprise to get a logo from the Geographical

Indication Registry (GIR), a Central government body based in Chennai. GIR was formed to

protect the Intellectual Property Rights for Indian goods under the Geographical Indication of

Goods (Registration and Protection) Act, 1999.


The GIR Certificate is a sign used on goods that have a special geographical origin and

possess qualities or reputation of their place of origin. The KSIC also will have the patent rights

of Mysore Silk brand and no other organization can use the same name for other silk products.

The other products which have been awarded GIR Certificate include Kanjeevaram sarees,

Basmati Rice, Swiss watches and Dutch Tulips.

PRESENT STATUS OF THE INDUSTRY

KSIC produces 6,000 sarees every year and, armed with the GIR Certificate, KSIC now

plans to have a distributor in every state.

EXCLUSIVE STATUS

Manufacturers or traders can use the word ‘Mysore Silk’ to market their silk fabric

without KSIC’s nod product must be made in Mysore district penal action for unauthorized use.

Every Mysore silk saree will carry a logo- Intellectual Property India.

The two pillars of Korean manufacturing sector are textile industries (KSIC code 32) and

machinery, equipment and electronics industries (KSIC code 38). The output share of textile has

decreased from 21.8% in 1970 to 13.7% in 1990 while that of machinery and equipment has

increased from 12.2% to 34.1%.

PRODUCTS

KSIC is the only organization in the country commending the entire gamut of silk

production right from reeling of cocoons to the weaving of pure silk fabric of various shades and

designs, all under one roof. KSIC uses only high quality pure natural silk and 100% pure gold

zari. The zari never tornish and will look fresh even over a long period of usage. KSIC is the

only organisation to give guarantee for its zari saree in the form of embroidered code No. which

is unique to each saree.



3. ORGANISATION DESIGN

ORGANISATION STRUCTURE OF KSIC, MYSORE

``````````


MANAGING DIRECTOR

GENERAL MANAGER

[PERSONNEL]

HEAD OF MARKETING & OPERATIONS

UNIT HEAD, SWF, MYSORE

HEAD OF FINANCE AND

ACCOUNTS

HEAD OF INTERNAL

AUDIT

MANAGER SALES

PRODUCTION MANAGER

SHOW ROOMS

HEAD OF PURCHASE &

STORE

IN-CHARGE MAINTENANACE

HEAD OF PERSONNEL

HEAD OF ACCOUNTS

FMG SHOW ROOMS

SECTION HEAD - THROWING

SECTION HEAD - WEAVING

SECTION HEAD - DYEING

SECTION HEAD – PRINTING

4. FUNCTIONAL DEPARTMENTS:

4.1. PERSONNEL DEPARTMENT

Personnel management is concerned with people at work and its aim is to develop good

relationship between management and employee. Personnel management is that part of total

management of an organization, which specially deals with human resources in respect of

a) Their procurement.

b) Their development.

c) Their motivation, towards the attainment of organizational objectives.

PERSONNEL DEPARTMENT IN KSIC LTD

Personnel department in KSIC Ltd. is a very important and clearly defined department.

The department performs the personnel and administrative functions. It has a direct link with the

employees and understands their needs and wants. The personnel officer is in charge of this

department and under him junior Superintend, junior Assistant Steno Receptionist, Driver, Peon

etc.

FUNCTIONS OF PERSONNEL DEPARTMENT

1. Recruitment and selection.

2. Training.

3. Provide sound program of salary and wage administration.

4. Allowances for the employee.

5. Provide maintain safety measures.

6. Keep employment records.

7. Handle labour problems and employee disputes.

DUTIES OF PERSONNEL OFFICER

1. To arrange for appointment of personnel.

2. To arrange recruitment as identified.

3. To comply with all statutory rules relating to personnel and Administrative matter.


4. To provide job security, job enlargement.

5. To provide sound promotion policy providing simple scope for self advancement.

6. To ensure statutory compliances of ESI, PF etc.

7. To collect analyse and present the required data for such discussion or

negotiation between the board of director and the trade union.

8. To provide guidelines of the security officer for the implementation of security

measures.

9. To attend labour courts and conciliations by the labour and other departments.

10. To prepare and maintain up gradation, seniority list of all the employees of the

company.

MANPOWER IN THE KSIC LIMITED

The total strength of the employees in KSIC Ltd is 529

RECRUITMENT

The method by which the company recruits labour is

1. Direct recruitment.

2. Public service commission.

3. Paper advertisement.

All employees of the individual corporation and companies excluding workers are

defined in the factories Act and excluding persons employed in the supervisory or

managerial capacity whose basic wages (starting) excluding DA and other allowance

exceeds Rs. 700 are to be recruited through PSC.


Category of Employees No of Employees

Officers and Staff 145

Workers 394

Clerical post such as Steno- Typist, Junior Assistants, Driver, and Receptionist

cum Telephone operator, Maintenance Assistants etc. are filled up by under PSC

recruitments. Managerial supervisory and workers vacancies are filled up by direct

recruitment. The advertisement is published in the newspapers to fill up the vacancies.

The Board of Director will nominate a selection council to interview and select the direct

recruitment employees.

TRAINING

Training means to give information or skill through instructions or practical. It is

a method for increasing the knowledge and skill of the people for a specific job.

“Training is the art off increasing the knowledge and skills of employees for doing a

particular job”.

The Training methods are:

1. On the job training

2. Off the job training

ON THE JOB TRAINING

This is a common used method for training the operative personnel. The workers

are trained under the same type of conditions they have to work in future. On the job he

can experience the conditions and requirements of actual work situations.

OFF THE JOB TRAINING

Off the job training generally consists of conferences, seminars, lectures, group

discussions, case studies, programmes, instructions etc.

REMUNERATION TO EMPLOYEES

The minority reward paid by the management to worker or an employee for the

performance of the assigned task is called “wages” or “salary”. Salary is the remuneration

paid to non operative staff, salaries are paid on a monthly basis to office staff, managers,

and technical advisors etc. wages is the remuneration paid to the workers involved in


production. Work and who’s output can be directly measured. Some employees are

working on daily wages.

WELFARE MEASURES

Employees will get PF, ESI, Minimum Bonus and Gratuity benefits.

BONUS FOR EMPLOYEES

The word bonus denotes an incentive payment to the workers aimed at enhancing

their efficiency and loyalty to their organisation.

Promotion takes place when an employee moves to a higher than once formerly

occupied. His responsibility, status and pay also increase; the promotions method adopted

here is “Seniority basis”.

RELATIONS BETWEEN MANAGEMENT AND UNION

Most of the employee’s opinion is that there is a healthy relationship between the

management and union. So management must take necessary steps to maintain this good

relationship. So there is no problem from the part of the union.

DEPARTMENTAL CHART


PERSONNEL OFFICER

JUNIOR SUPERINTEND

JUNIOR ASSISTANT

4.2. FINANCE DEPARTMENT

DEPARTMENTAL CHART

Financial management is responsible for estimation of financial resources.

Finance is lifeblood of every business. Therefore it is most important and complicated for

business. Finance department in KSIC LTD is needed by finance manager and under him

accountant, junior superintend and cashier.

FUNCTIONS OF FINANCE DEPARTMENT

Finalization of account.

Preparation of wage sheet.

Maintain cost records.

Budget making and set target to be achieved.

Set out the financial requirements, loans, income expenditure etc.


FINANCE OFFICER

ACCOUNT GRADE

ACCOUNT GRADE- 2

CASHIER JUNIOR ASSISTANT

DUTIES OF FINANCE MANAGER

1. Keep the books of accounts of the company up-to-date.

2. To inspect the accounts of the company.

3. To monitor all the financial transaction of the company.

4. To arrange the reconciliation of the books of accounts of the company with the books

of accounts of the company.

REGISTERS AND BOOKS OF ACCOUNTS

The manager should keep proper books of accounts, register and other documents.

He should maintain proper and accurate records of accounts of working of the company.

Copies of the balance sheet shall supply free on demand of any members.

The books generally kept in finance department are

1. Cash book

2. General Ledger

3. Bank book

4. Sales general

5. Purchase general


4.3. PURCHASE AND SALES DEPARTMENT

In ordinary sense the term purchasing is the procurement of materialism, machinery

and tools on payment. But today purchasing has acquired new dimensions and such as it may be

defined as “the functions of procurement with a view to reduce the investment, variety and vale

of materials so as to facilitate the standardization and competitive marketability of the product”.

FUNCTIONS OF PURCHASE DEPARTMENT

To maintain regular flow of materials.

To purchase at a competitive price, the right quality from a right source.

To ensure higher productivity of men, machine and materials.

To ensure production of better quality of products at competitive costs.

METHOD OF PURCHASING

KSIC adopt centralized purchasing. It includes purchase of raw materials, stores, land

and equipment. Fund, stationary, supplies, chemicals etc all bulk purchases are petty purchases

are made though this department except maintenance purchase. Maintenance purchases are made

by administration section.

PROCEDURE IN THE PURCHASE DEPARTMENT

Receiving purchase requisition:

This stores office as and when purchase requisition or intends are received from the

concerned department. It should be done before two or three weeks.

Exploring the source of supply:

The selection of right source of supply is very important from the point of view of

getting the materials in the time and desired quality at a price. The different categories of

suppliers are found out through advertisement, tender, etc. the quotations are compared with

others and from this the best is selected. The chemicals are purchased by yearly quotations.

In KSIC, two types of suppliers are found.

Manufacturing suppliers and Distributors and commission agents.


4.4. PRODUCTION DEPARTMENT

The production department is largely connected with manufacturing and its allied

areas such as, determination of quality and quality to be produced, production planning,

work analysis, quality control etc. production department also deals with clerical work

relating to various activities of a production of a finished products, material requisition,

stock records etc. production department is headed by Production Manager.

PRODUCTION

Production is concentrated in the existing two plants namely

1. Silk weaving and printing plant (Mysore)

2. Silk filature plant.

1. Mysore- Silk weaving and printing silk products

The Factory is located in the heart of the Mysore city and is spread over acres.

The raw silk yarn Filatures obtained from T. Narasipura factory and open market are put

through various process and quality silk products are produced for end user consumption.

The factory has an installed capacity of 8, 00,000 Mtrs per annum. The factory is

provided with various high end equipments so as to produce best of silk.

The factory started with 10 looms in 1930 under the rulers of erstwhile Mysore

Kingdom today boasts of more than 159 looms, two warping machines & Pirn Machines

and many number of preparatory machines. Most of the machines are imported from

Switzerland and Japan. KSIC silk product are well appreciated in the market due to its

100% pure silk blended with 100% pure gold Zari (65% of silver &0.65% of Gold).The

sarees manufactured are of unmatched quality come in varieties to the customers tastes

namely Crep de Chine, Georgette, Zari printed crepe silk sarees, semi crepe sarees. The

sarees are printed or dyed. The sarees come in a splash of Over 100 different colors and

any numbers of designs.

Some of the design combinations are:


Emroidery design saree

Big Butta Pallu saree

Rich Pallu saree

Jawar Border saree

Small Mango saree

Zari printed saree

Saree tissue Saree

Traditional Zari saree

Checked zari saree

Mango Border saree

Sunrise Design saree

Butta Pallu saree

Double Line Checks saree.

Based on the taste of the end consumers the saree are printed and Dyed with suitable

eye catching colors. Various approved quantity of approved chemicals are added at

various stages as per silk manufacturing standards to retain the luster and quality of the

silk fabrics. The sheen and the visual luxury of the crepes are only to be experienced. At

75 gms per meter, the KSIC silk sarees have an unmatched drape. These crepes have

delicate stands of zari interwoven in spectacular designs, in borders and pallu. The

printed crepes are tributes to designing and come with a double advantage of possessing

the crepe’s softness and a vibrant range of designs from floral to geometric.

To protect esteemed customers imitation of KSIC silks, KSIC have given a

special embroidered number for each one of the sarees with unique number and

hologram. Other products of silk include soft silks, hanky’s, Neck ties, Stoles, Cravats,

dupion fabrics etc.


2. T. Narasipura- Silk filature

Silk Filature refers to raw silk manufacturing unit. The unit manufactures raw

silk yarn and transfer to meet the raw material requirement of silk weaving factory in

Mysore.

The factory is located in T. Narasipura, Mysore district in an area of

approximately 15 acres. The factory is headed by a General Manager. The factory

supplies raw silk yarn to their own silk weaving factory located in Mysore.

Approximately 1000 Kgs. Of cocoons are purchased daily from government controlled

market depending on needs and raw silk yarn known as filatures are produced. The

purchase is done on almost daily basis as the purchased cocoon cannot be stored for than

2 to 3 days.

CAPACITY

Installed capacity : 225kgs/day

Actual production 120kgs/day

The factor uses the best technology per say in raw silk manufacturing. It follows

the international silk association standards and has the following stringent parameters for

testing using standard machineries.

a) Renditta-

This refers to amount of Kgs of cocoons required to produce 1 Kg Of raw silk yarn.

b) Type of Cocoon-

Multivoltaine Coccon : 8 to 8.5 Renditta

Bi-Voltaine Cocoon : 6.5 to 7 Renditta

Grade of Raw silk yarn

Grade A, Grade 2A, Grade 3A, Grade 4A, and Grade 5A.


International silk association standards to set the following

Denier- weight in grams/Mtr

Tenacity

Elongation

Cleanness

Neatness

The silk filature plant uses modern Japanese & Korean Machineries having denier

control to produce quality silk yarn.

The unit uses two types of reeling

1) Automatic- Japanese Machinery

2) Semi Automatic- Korean Machinery

The Cocoon purchased from Government control market undergoes various stages of production

namely sorting, boiling, & reeling. Silk yarn is passed through buttons and pulley (Croiser) to

maintain tenacity and elongation and

Wound on a reel. Re-reeling is done to make the silk yarn into a continuous length and

convert it into hanks. Reeled yarn is passed through yarn and made into big reel. The

approximate weight of the yarn is 100 to 120 gms. To maintain quality the silk yarn undergoes

various processes like silk skinning to remove gum spots manually. The unit is in the process of

implementing ISO 9002 Standards.

QUALITY CONTROL

The company has been set up quality control sections of quality control and

development. The company has continues research and development programmer a results off

which, they can identify new product lines. The quality control ensures the consistent quality

products.


OBJECTIVES OF QUALITY CONTROL

1. Continue improvement in operations.

2. Improvement in export turnover.

3. Consumer satisfaction.

FUNCTIONS OF QUALITY CONTROL

Quality inspection

Quality of silk and fabrics checked during various stages of production such as dyeing,

weaving, stenciling etc, if the quality of the product is beyond the standards prescribed then it is

rejected.

PRODUCT DEVELOPMENT

This function includes the development of original products, modifications etc. factions

are done with the tastes and preference of the customers.

DESIGNING

Designing of silk products are done by both designers of international reputes and

national reputes. They create new concepts and trends in the area of weaving color combinations.


4.5. MARKETING DEPARTMENT

ORGANISATION CHART FOR MARKETING DEPARTMENT

Marketing is the performance of business activities that direct the flow of goods and services

from the producer to the customer. It is a system of interacting business activities designed to

plan, promote and service to existing and potential customers. The main function of marketing is

to view the customer as the very purpose of the business.

It emphasizes on identification of a market opportunity and fulfilling the needs of the

customers. Without marketing there is no consumer and without the customer there is no use for

the product or service the company is producing.

At KSIC, the marketing department acts as a guide, and lead the company’s other

departments in developing, producing, fulfilling and servicing products and services for their

customers. Communication is vital and the marketing department typically has a better

understanding of the market and customer needs.


MARKETING MANAGER

ASSSSISTANT MANAGER

MARKETING OFFICER

SALES OFFICER

The goals and guidelines set by the Marketing Department are in line with the vision and

mission of the company. The upper management is also involved in and endorses cooperation by

all departments in following and implementing the plan and integrating a consistent message into

all communication channels.

ELEMENTS OF MARKETING MIX

1. Product

Marketing department ensures that the product is of the same grade as specified by the

customers and meets the quality standards.

2. Price

The prices are based on pricing policies taken by the company based on the market

conditions. The pricing decisions are taken by the Marketing Department after studying the

market conditions and also comparing the competitor’s price.

3. Promotion

It deals with advertising and sales promotion for the product. Since the company goes for

Industrial marketing department, mainly on electronic segment, it concentrates on direct

marketing as a means of promotion which enjoys the advantage of two way communication.

4. Place

In this industry the place is not that much important. The production plant is setup in

Mysore.

KSIC Showrooms

To sell the silk fabric products produced, KSIC has its own

showrooms at various places as listed below. This is to ensure that only

the best and original silk Fabrics are sold. It has no dealers or any other

outlets other than its own showrooms manned by KSIC staff

Bangalore


Mysore

Chennai

Hyderabad

Kerala

COMPETITORS

The major competitors in India Kalyan Silk, Chennai Silk, Seemati Silks, Kanchipuram

silk, etc.

5. FINDINGS, CONCLUSION AND RECOMMENDATION


FINDINGS:

1. Lack of direct feedback.

In this organization we can see there is no proper feedback system, so

organization has to look in to that which will help the employee.

2. Control over resources.

They have proper control over the resources which have been provided by

government

3. Lack scheduling own work.

4. Change in technology.

Organization can opt for the new technology, which will reduce in the work load

from worker.

5. Lack of communication skills.

Some of the workers are not educated properly, so they are not able to explain the

process what’s happening.

6. Slow growth of the organization.

As the organization is running in profit with a slow pace, so company has to take

some measures that it will achieve more the profit.

7. Large number of workers.

There are huge number of workers in the organization, so it will be little difficult

to understand each one problem.

RECOMMENDATIONS:


1. A qualified person must be selected by an interview.

The organization should give the opportunity for the young people, so that they

can explore the new things for the organization.

2. Giving proper apprenticeship training about the new technical machines to the workers.

The workers should be given proper training programme and make them aware

of the new technology.

3. Well co-operation between the supervisors to the workers.

There should be a good relationship between the worker and supervisor, so that the work

will be done smoothly.

4. JIT Quality raw materials should be supply at a time.

5. Good relationship between the producers to the clients/customers.

6. Proper communication must be applied to the organization.

7. Improving the growth of the organization like, development of technology,

communication skills, quality raw materials and time management etc.

CONCLUSION:


An organization study was conducted in factory of KSIC LTD, Mysore, which lasted for

duration of 12 Days. The executives were highly co-operative in sharing the various functions of

the concerned departments. Primary data was collected through question and answer sessions

and secondary data was collected by referring to various journals, magazines and website of the

company.

This organization study helped me to relate theoretical knowledge with the practical

scenario in the organization. The ethical values and focus on customer satisfaction of KSIC LTD

was highly impressive. The salary package paid to the employees is less when compare to any

other companies. It manufactures only sarees and silk products. The company should provide

offers and discounts to attract customers. So this project gives enough information about the

company.

BIBLIOGRAPHY


BASIC MATERIALS USED:

Annual report of KSIC, Ltd.

Profile of KSIC, Ltd.

WEBSITES:

www.ksicsilk.com

www. [email protected]

www. google.com


mailto:[email protected]

http://www.ksicsilk.com/

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