OS Original Report

7/31/2019 OS Original Report

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1.1. INTRODUCTION TO THE STUDY

This study is conducted to examine the functioning of an

organization. The organization which I chosen for my organization

study is KERALA LAKSHMI MILL pullazhi ,Yarn manufacturing

company.

The textile sectors closely linked with agriculture, hand looms, power

looms and garment and a number of ancillary industries and trade, thustouching everyday life of the common man. It provides employment to

many millions like cotton growers, processors, hand loom and power

loom weavers etc.

The Kerala Lakshmi Mill is situated at Pullazhi in Thrissur District.

This mill was promoted by Late Shri. Karimuthu Thyagaraja , and was

incorporated in 1961 , but started production only in 1963 .Now Kerala

Lakshmi Mill is a public limited company , and a subsidiary of

National Textile Corporation (N.T.C).

1.2. OBJECTIVES OF THE STUDY

To acquire knowledge about the functioning of various departments.

To know about the products and their uses and quality.

To know about the textile industry.

To have an exposure to the real working of the unit. To identify the problems of the organization.


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1.3. SCOPE OF THE STUDY

The study helped to understand the practical sides of thetheories that have been taught. This study describes the history,

genesis, activities and achievements of KERALA LAKSHMI

MILLS.

The study covers information on the present organizational

system of KERALA LAKSHMI MILLS. This information can help

in better understanding of the firm, its policies and strategies.

The study gives hints on how effectively an organization

can design its functional areas and how they can be constructed to

improve organizational effectiveness.

1.4. RESEARCH METHODOLOGY

To define any research problem and give a suitable solution for the

problem a sound research plan is inevitable. Research methodology

underlines the various steps involved by the researcher in

systematically solving the problem with the objective of determining

various facts

In this study the data were collected through primary and secondary

sources.

Primary data are the data which are collected for the first time for the

purpose of enquiry in hand. It is done by the person himself.

Secondary data refers to the data, which have been collected by some

other persons and the investigator uses it.


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Primary Data

The source of primary data was

Direct Interview with staff and employees. Direct Observation in the organization.

Secondary Data

The source s of secondary data was

Records and reports of the company. Product brochures. Internet.

1.5. RESEARCH DESIGN

The study is descriptive in nature and this is an attempt to

evaluate the performance of the company by studying the management

function of the different departments and marketing activities of the

company.

1.6. LIMITATIONS OF THE STUDY

Time factor is an important limit of the study. It is not possible to get all the information from the company. The study does not include the financial statements of the company Due to lack of time and busy work, employees could not reveal more

information.


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2.1. INDUSTRY PROFILE

2.2. Introduction

The Indian textile industry has a significant presence in the

economy as well as in the international textile economy. Its

contribution to the Indian economy is manifested in terms of its

contribution to the industrial production, employment generation and

foreign exchange earnings. It contributes 20 percent of industrial

production, 9 percent of excise collections, 18 percent of employment

in the industrial sector, nearly 20 percent to the countrys total export

earning and 4 percent to the Gross Domestic Product.

2.3. History of Indian Textile Industry

India has been well known for her textile goods since very

ancient times. The traditional textile industry of India was virtually

decayed during the colonial regime. However, the modern textile

industry took birth in India in the early nineteenth century when the

first textile mill in the country was established at fort Gloster near

Calcutta in 1818. The cotton textile industry, however, made its real

beginning in Bombay, in 1850s. The first cotton textile mill of Bombay

was established in 1854 by a Parsi cotton merchant then engaged in

overseas and internal trade. Indeed, the vast majority of the early mills

were the handiwork of Parsi merchants engaged in yarn and cloth trade

at home and Chinese and African markets.

In the 13th century, Indian silk was used as barter for spices

from the western countries. Towards the end of the 17th century, the

British East India Company had begun exports of Indian silks and


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various other cotton fabrics to other countries. These included the

famous fine Muslin cloth of Bengal, Bihar and Orissa. Painted and

printed cottons or chintz was extensively practiced between India,

China, Java and the Philippines, long before the arrival of the

Europeans.

The cotton textile industry made rapid progress in the second

half of the nineteenth century and by the end of the century there were

178 cotton textile mills; but during the year 1900 the cotton textile

industry was in bad state due to the great famine and a number of mills

of Bombay and Ahmadabad were to be closed down for long periods.

The two world War and the Swadeshi movement provided great

stimulus to the Indian cotton textile industry. However, during the

period 1922 to 1937 the industry was in doldrums and during this

period a number of the Bombay mills changed hands. The Second

World War, during which textile import from Japan completely

stopped, however, brought about an unprecedented growth of this

industry. The number of mills increased from 178 with 4.05 lakh looms

in 1901 to 249 mills with 13.35 lakh looms in 1921 and further to 396mills with over 20 lakh looms in 1941. By 1945 there were 417 mills

employing 5.10 lakh workers.

The first cotton mill in Ahmadabad, which was eventually to

emerge as a rival centre to Bombay, was established in 1861. The

spread of the textile industry to Ahmadabad was largely due to the

Gujarat trading class.

The partition of the country at the time of independence

affected the cotton textile industry also. The Indian union got 409 out

of the 423 textiles mills of the undivided India. 14 mills and 22 per cent

of the land under cotton cultivation went to Pakistan. Some mills were

closed down for some time. For a number of years since independence,

Indian mills had to import cotton from Pakistan and other countries.

After independence, the cotton textile industry made rapid strides

under the Plans. Between 1951 and 1982 the total number of spindles


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doubled from 11 million to 22 million. It increased further to well over

26 million by 1989-90.

Textile Industry in India is the second largest employment

generator after agriculture. It holds significant status in India as it

provides one of the most fundamental necessities of the people. Textile

industry was one of the earliest industries to come into existence in

India and it accounts for more than 30% of the total exports. In fact

Indian textile industry is the second largest in the world second only toChina.

Till the year 1985, development of textile sector in India took

place in terms of general policies. In 1985, for the first time the

importance of textile sector was recognized and a separate policy

statement was announced with regard to development of textile sector.

In the year 2000, National Textile Policy was announced. Its main

objective was: to provide cloth of acceptable quality at reasonable

prices for the vast majority of the population of the country, to

increasingly contribute to the provision of sustainable employment and

the economic growth of the nation; and to compete with confidence for

an increasing share of the global market. The policy also aimed at

achieving the target of textile and apparel exports of US $ 50 billion by

2010 of which the share of garments will be US $ 25 billon.

Current Position of Indian Textile Industry

Textile constitutes the single largest industry in India. The segment

of the industry during the year 2000-01 has been positive. The production

of cotton declined from 156 lakh bales in 1999-2000 to 1.40 lakh bales

during 2000-01. Production of man-made fibre increased from 835 million

kgs in 1999-2000 to 904 million kgs during the year 2000-01 registering a

growth of 8.26%. The production of spun yarn increased to 3160 million


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kgs during 2000-01 from 3046 million kgs during 1999-2000 registering a

growth of 3.7%. The production of man-made filament yarn registered a

growth of 2.91% during the year 1999-2000 increasing from 894 million

kgs to 920 million kgs. The production of fabric registered a growth of

2.7% during the year 1999-2000 increasing from 39,208 million sq mtrs to

40,256 million sq metres. The production of mill sector declined by 2.6%

while production of handloom, power loom and hosiery sector increased

by 2%, 2.7% and 5.1% respectively. The exports of textiles and garments

increased from Rs. 455048 million to Rs. 552424 million, registering a

growth of 21%. Growth in the textile industry in the year 2003-2004 was

Rs. 1609 billion and during 2004-05 production of fabrics touched a peak

of 45,378 million square meters. In the year 2005-06 up to November,

production of fabrics registered a further growth of 9 percent over the

corresponding period of the previous year.

2.4.PROBLEMS FACED BY THE TEXTILE

INDUSTRY IN INDIA

The cotton textile industry is reeling under manifold problems. The

major problems are the following:Sickness:

Sickness is widespread in the cotton textile industry. After the

engineering industry, the cotton textile industry has the highest

incidence of sickness. As many as 125 sick units have been taken over

by the Central Government. Sickness is caused by various reasons like

the problems mentioned below.

Obsolescence:The plant and machinery and technology employed by a number

of units are obsolete. The need today is to make the industry

technologically up-to-date rather than expand capacity as such. This


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need was foreseen quite some time back and schemes for

modernisation of textile industry had been introduced. The soft loan

scheme was introduced a few years back and some units were able to

take advantage of the scheme and modernise their equipment.

Government Regulations:Government regulations like the obligation to produced

controlled cloth are against the interest of the industry. During the last

two decades the excessive regulations exercised by the government on

the mill sector has promoted inefficiency in both production and

management. This has also resulted in a colossal waste of raw

materials and productive facilities. For example, the mills are not

allowed to use filament yarn in warp in order to protect the interest of

art silk and power loom sector which use this yarn to cater to the

affluent section of society.

Low Yield and Fluctuation of Cotton Output:

The cotton yield per hectare of land is very low in India. This

results in high cost and price. Being largely dependent on the climatic

factors, the total raw cotton production is subject to wide fluctuation

causing serious problems for the mills in respect of the supply of the

raw material.

Competition from Manmade Fibers

One of the serious challenges facing the cotton textile industry is

the competition from the man-made fibres and synthetics. These textures

are gradually replacing cotton textiles. This substitution has in fact been

supported by a number of people on the ground that it is not possible to


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increase substantially the raw cotton production without affecting other

crops.

Competition from other Countries:In the international market, India has been facing severe

competition from other countries like Taiwan, South Korea, China and

Japan. The high cost of production of the Indian industry is a serious

adverse factor.

Labour Problems:The cotton textile industry is frequently plagued by labour problems.

The very long strike of the textile workers of Bombay caused losses

amounting to millions of rupees not only to the workers and industry but

also to the nation in terms of excise and other taxes and exports.

2.5. Strengths of Indian textile Industry

India has rich resources of raw materials of textile industry. It is one ofthe largest producers of cotton in the world and is also rich in resources of

fibres like polyester, silk, viscose etc.

India is rich in highly trained manpower. The country has a hugeadvantage due to lower wage rates. Because of low labour rates the

manufacturing cost in textile automatically comes down to very

reasonable rates.


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India is highly competitive in spinning sector and has presence in almostall processes of the value chain.

Indian garment industry is very diverse in size, manufacturing facility,type of apparel produced, quantity and quality of output, cost,

requirement for fabric etc. It comprises suppliers of ready-made

garments for both, domestic or export markets.

2.6. Weaknesses of Indian textile Industry

Indian textile industry is highly fragmented in industry structure, and isled by small scale companies. The reservation of production for very

small companies that was imposed with the intention to help out small

scale companies across the country, led substantial fragmentation that

distorted the competitiveness of industry. Smaller companies do not

have the fiscal resources to enhance technology or invest in the high-

end engineering of processes. Hence they lose in productivity.

Indian labour laws are relatively unfavourable to the trades and there isan urgent need for labour reforms in India.

India seriously lacks in trade pact memberships, which leads torestricted access to the other major markets.


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2.7. COTTON TEXTILE INDUSTRY IN KERALA

The textile industry in Kerala is the oldest and occupies a key

position in the state economic development. In Kerala there are about

24 cotton textile mills (excluding NTC). The earliest known registered

factory is the Malabar Spinning & Weaving Company at Ponnanikara

in Calicut started in 1884. The second important textile unit set up in

the state was Quilon Spinning Mills. The Kerala State Textile

Corporation was incorporated in 1972 with the objective of promoting

textile industry and assisting sick mills.

Though Kerala has a number of cotton textile mills, the raw

materials i.e. cotton is not widely cultivated here. It is either obtained

from other states or imported from outside India. The climatic

condition of Kerala frequently changes, so suitable arrangements are

made in factories to maintain the desired atmospheric condition for the

production of yarn. A large number of people get direct employment in

the mills and ever a large number get indirect employment. More than

20,000 workers are working in different cotton textile mills in Kerala.

Textile Industries in Kerala also suffers from many problems. As

stated before, high power cost, high raw material cost, low technology

etc are all applicable to textile mills in Kerala. Another major problem

is in terms of modernization. This may be viewed from two aspects.

1. Insufficiency of funds for modernization.


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2. Modernization may involve installation of modern machineries whichmay bring about a reduction in employment opportunities.

Last, but not the least, the labour problems makes Kerala, the least

preferred place for any industry.

In Kerala, there are 31 established textile mills and out of that 17

mills are owned by central and state government, and balance is private

owned mills. Out of that 7 mills are situated in Thrissur district. Those

mills are as follows:-

A. Kerala Lakshmi Textiles LtdB. Vanaja Textiles LtdC. Sitaram Textiles LtdD. Rajagopal Textiles LtdE. Co-Operative Spinning Mills LtdF. Thanikkudam Bhagavathi Spinning Mills LtdG. Alagappa Textiles Ltd


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2.8. COMPANY PROFILE

2.9. National Textile Corporation (NTC)

The National Textile Corporation Limited (NTC) is a Central

Public Sector Enterprise under the Ministry of Textiles which was

incorporated in April 1968 for managing the affairs of sick textile

undertakings, in the private sector, taken over by the Government.

Starting with 16 mills in 1968, this number gradually rose to 103 by

1972-73.In the year 1974 all these units were nationalized under the

Sick Textile Undertaking (Nationalization) Act 1974. The number of

units increased to 119 by 1995. These 119 mills were controlled by

NTC(HC)Ltd with the help of 9 subsidiary Corporations, with an

authorized capital of Rs 10 crores which was raised from time to time

and which is now Rs 5000 crores and the paid up share capital of the

corporation is Rs 3062.16 crores as on 31.03.2008.

Vision

TO BE A WORLD CLASS ECO-FRIENDLY INTEGRATED

TEXTILE COMPANY, TRANSFORMING INTO A

HOUSEHOLD NAME THROUGH INNOVATIVE IDEAS AND

TECHNOLOGY

Mission

BRAND TO BE THE NATIONS CLOTHIER,

BE A NATIONAL PLAYER PROVIDING

1. CLOTHING SOLUTIONS TO NATIONS MASSES.2. OPPORTUNITY FOR THE NATIONS PEOPLE TO IDENTIFY

THEMSELVES WITH A NATIONAL.


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The Headquarters of the holding company is at New Delhi. The

strength of the group is around 22000 employees. The annual turnover

of the Company in the year 2004-05 was approximately Rs. 638 Crores

having capacity of 11 lakhs Spindles, 1500 looms producing 450 Lakh

Kgs. of yarn and 185 lakhs Metres of cloth annually.

In the implementation of the Revival Scheme sanctioned for NTC

mills, Government has decided to modernize 22 mills by itself through

generation of funds from the sale of its surplus assets .The remaining

30 mills requiring heavy dose of modernization, for which NTC did not

have adequate resources for modernization after meeting the cost of

servicing the Bonds raised and also to quicken the modernization

process, private partnership through joint venture was explored for 18

mills.

NTC expects to complete modernization of its 22 mills by itself

up to spinning activity by March, 2009. Purchase Orders for new

machinery have been placed. So far, an amount of Rs.430.00 croreshave been spent on purchase of new machinery and renovation of

existing working machines, buildings, humidification and

electrification etc.

Amongst 22 mills, 4 mills will be modernized by relocation and as

a Green Field Project including Udaipur Cotton Mills proposed to be

modernized to produce technical textiles (Geo-textiles)

After modernization, NTC is projected to produce 600 lakh Kgs. of

yarn and 250 lakh Metres of cloth annually with a turnover of more

than Rs.931 crores in the year 2009-10.


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Central-owned National Textile Corporation (NTC) has announced

that its three new mills in the states of Karnataka, Maharashtra and

Gujarat will start functioning in next three to six months. Establishment

cost of these three mills is estimated at Rs.6.5 billion. These mills are

being established at Achalpur in Maharastra, Hassan in Karnataka and

Ahmedabad in Gujarat. These three mills would have a combined a

capacity of 132,000 spindles.

It has been expected that by the year 2014 that the total turnover

of the company would go up to Rs.20.14 billion as an ambitious plan

has been chalked out to fetch that amount of business. Last year, the

annual turnover of NTC was Rs.4.8 billion, which will increase up to

Rs.5.5 billion this year.


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Through its 9 subsidiaries the companies under NTC has spread all

over India.

Sl.

No.

SubsidiaryNo of Mills

Head

Office

1 NTC (Andhra Pradesh,

Karnataka, Kerala &Mahi) Ltd

16 Bangalore

2 NTC ( Delhi, Punjab,

Rajasthan ) Ltd

9 New Delhi

3 NTC ( Gujarat ) Ltd 10 Ahmadabad

4 NTC ( Madhya Pradesh

) Ltd

10 Indore

5 NTC (North

aharashtra ) Ltd

13 Mumbai

6 NTC(South

Maharashtra ) Ltd

11 Mumbai

7 NTC ( Tamilnadu &

Pondichery )Ltd

17 Coimbatore

8 NTC ( Uttar Pradesh )

Ltd

11 Kanpur


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There are 15 mills under the control of the NTC (A.P, K, K & M) limited at

present. They are as follows:-

1) Minerva Mills2) Netha Spinning Mills3) Nataraj Spinning and Weaving Mills4) Sree Yellamma Cotton, Woollen & Silk Mills5) M.S.I.K Mills6) Adoni Cotton Mills7) Ananathpur Cotton Mills8) Mysore Spinning & Weaving Mills9) Azam Jahi Mills10)Thirupathy Cotton Mills11)Alagappa Textiles12)Vijaya Mohini Mills13)Cannore Spinning & Weaving Mills14)Kerala Lakshmi Mills15)Parvathy Mills

9 NTC (West Bengal,

Bihar & Orissa) Ltd

21 Kolkata


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2.10. KERALA LAKSHMI MILLS - PULLAZHI

Kerala Lakshmi Mills is a Govt. Company under public sector.

It is situated at Pullazhi in Thrissur District. The mill was promoted by

Late. Shri. Karimuthu Thyagaraja Chettiar and it was incorporated in

1961. The production was commenced in 1963 with an installed

capacity of 24000 spindles. The capacity was raised to 30960 spindles

subsequently.

Due to financial and management problems, during the year

1974 the mill was Nationalized by Govt. of India under sick textile

Undertaking Act 1974.The management of the mill is vested with the

National Textile Corporation Ltd. New Delhi (A govt. of India

undertaking) and later with effect from 01/04/1974 it was transferred to

its subsidiary company National Textile Corporation (Andra Pradesh,

Karnataka, Kerala & Mahe) limited Bangalore.

After Nationalization consequent to the implementation of

modernization/ expansion scheme the installed capacity was raised to

41328 spindles by 1985. Presently the mill is manufacturing blended

yarn in the following counts such as 45sPV, 60sPC, 62sPC. The main

raw material Polyester is procured from M/s Reliance Industry Ltd, and

M/s Indo Rama Synthesis Ltd and Viscose Fibre from M/s Grasim

Industries Ltd, Coimbatore. The raw cotton is mainly purchased from

Cotton Corporation of India.

LOCATION

The mill is situated at Pullazhi about 5 Km from Thrissur town.

CAPACITY

The licensed capacity of the mill is 41,520 spindles. The

installed and commissioned capacity of the mills is 41,328.


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REGISTERED OFFICE

National Textile Corporation 9 AP, K, K & M Ltd, 3rd

floor,

Nanjappa Mansion, 29/ KH Road, Shanthinagar, Bangalore

56002795.

SHARE CAPITAL

The mills share holding of Rs. 114.46 lakhs is contributed by the

subsidiary corporation NTC by way of Equity Share Capital.

2.11. FINANCIAL POSITION

Now the mill is on the way to profit and a long term expansion

is in a start. It is about 20 crores as a whole for the overall expansion;

all the old machineries will be replaced by the modern and high

production type machinery. The modernization will be full filled with

in one year. After the modernization the cost of production may

decrease around 20 to 25% because of the modern machinery.

ORGANIZATION AND MANAGEMENT

The management of Kerala Lakshmi mills is vested in NTC Ltd

Bangalore which is the head office of the mills. The holding company

of the mill and its head office is NTC Ltd, New Delhi.

2.12. ADMINISTRATION

The chief of the organization is the General Manager who is a

technically qualified person who is having sound knowledge and

valuable experience in running many textile mills. The persons

managing the various departments working under him are also

personnel qualified in their respective fields such as financial

management, production management and engineering. They are

seniour personnel backed by long years of experience in textile work.


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The Kerala Lakshmi Mills is a unit of NTC Ltd. It is a spinning

mill. The company is engaged only in the manufacturing of yarn

product. Cotton is the main raw material used for the production. The

raw materials are supplied by the head office directly and also the sales

of the final product are also done by the head office itself. The cotton is

purchased in terms of bale. One bale contains 18 Kg of cotton.

2.13. PRODUCT PROFILE

The Kerala Lakshmi Mills is a unit of NTC Ltd. It is a spinning

mill. The company is engaged only in the manufacturing of yarn

product. Cotton is the main raw material used for the production. The

cotton is purchased in bale.

2.14. TYPES OF RAWMATERIALS

There are three kinds of raw materials used by the organization.

They are as follows.

Cotton Polyester Staple Fibre (PSF+ Cotton) Viscose Staple Fibre (VSF + Cotton)

2.15. MAJOR SUPPLIERS OF INPUTS

Name of Inputs Name of Suppliers

1. Cotton Grasim Industries,Kumarapatanam,

Hareri District, Karnataka.

2. Polyester Staple Fibre Reliance industries Ltd.J.R. Foods Ltd

Campus. Thirubhuvani.

Puducheri.

3. Viscose Staple Fibre Indo Rama SyntheticPrivate Ltd

Nagpur.


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2.16. TYPES OF PRODUCT

The product of the company is textile yarn. Presently the mill ismanufacturing blended yarn in the following counts such as 45sPV,

60sPC, 62sPC. The produced yarn is marketed through the market

divisions to the consumers in various markets. At present the products

are consumed in the Weaving units, Bombay. The quality of the yarn

supplied by the company is comparable to International standards.

However dew to fluctuation in the market price the company is not

able to realize competitive rates.

The textile mill is also affected due to the import of fabrics as a

result of Globalization. Further, due to the monitory and economic

recession the South Asian exporters turn to domestic yarn market,

thereby creating get in domestic yarn market and steep trope in selling

price. The shortage of working capital and the power supply also

affected the performance of the company.

Table showing the count of yarn producing and the ratio of raw

material consumed

COUNT RATIO

62P/C 75:25

60P/C 80:20

45P/C 55:45


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3.1 ORGANIZATION STRUCTURE OF THE KERALA LAKSHMI

MILLS

GENERAL MANAGER

FINANCE MANAGERSPINNING MANAGER PERSONNEL MANAGER

ASM DSM ASM

S C

STORE -

KEEPER

CLERK SUPERV-

ISOR

INVESTI-

GATOR

ASST. STORE

KEEPER

SALES

IN

CHARG

COST

A/C

CASHIE

R

CHIEF

A/C

PURCHASE

OFFICER

HEAD TIME

KEEPER

SECURITY

OFFICER

SENIOUR

TIME

KEEPER

SECURITY

GUARDS

E.S.I- P.F

CLERK

PRODUCTION

CLERK

WAGE CLERKCLERKS


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The main functional areas of the organization are

Production Department. Quality Control Department Personnel Department. Finance Department. Marketing Department.


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4.1. PRODUCTION DEPARTMENT

Production concepts are one of the oldest concepts in marketing.

Production concepts hold that consumers will favour those products

that are widely available and at low cost.

The assumption that consumers are primarily interested in product

availability and low price holds in at last two situations. The first is ,

where the demand for a product exceeds supply in developing then in

its fine points, and supplies will concentrate on finding ways to

increase production. Second situation is where the products with high

cost and has to be decreased to expand the market.

MEANING

Production is the functional area responsible for turning inputs

into finished outputs through a series of production processes. The

Production Manager is responsible for making sure that raw materials

are provided and made into finished goods effectively. He or she must

make sure that work is carried out smoothly, and must supervise

procedures for making work more efficient and more enjoyable.

Production, in economics, all those activities that have to do with

the creation of commodities, by imparting to raw materials utility,

added value, or the ability to satisfy human wants. Production is

concerned with the conversion of inputs (raw materials, machinery,

information, man power and other factors of production) into output

(semi- finished goods and service) with the help of certain processes

(planning, scheduling and controlling etc).


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DEFINITION

According to Elwood. S. Buffa Production Management deals with

the decision making related to production process, so that the resulting

goods and services are produced according to specification in amounts

and by the schedule demand and at minimum cost.

SCOPE OF PRODUCTION

Earlier periods there was no mechanization of production system

like the one they have now. It was too old tradition compared to this

new millennium. The process of mechanization was slowly improved

step by step.

STRUCTURE OF PRODUCTION DEPARTMENT

SPINNING MANAGER

ASM DY.SPINNING

MANAGER

ASM (SQC) STORE KEEPER

CLERK SUPERVISORS INVESTIGATORS ASST. STORE

KEEPER


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FUNCTIONS OF PRODUCTION MANAGERS

The various functions of production manager in the company

are:-

Production Planning Quality Control Inventory Control Work Measurement Production Control Method of Analysis Plant Layout Material Handling Design and Technical Support

DETAILS OF RAW MATERIALS

A. Type of Raw Material.

There are three kinds of raw materials used by the organization. They

are as follows.

a) Cottonb) Polyester Staple Fibre (Psf + Cotton)c) Viscose Staple Fibre ( Vsf + Cotton )

B. Quantity and Price of Raw materials.

The quantity of raw materials is based on the bales. The bales of

above three different raw materials are in three different quantities and

prices. They are shown in table below.


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i. Quantity and Price of Raw material :

Name Quantity per bale Price

Cotton 170 Kg Rs 46 to 56

Polyester

Staple Fibre

380 Kgs to

466 Kgs

Rs 70

Viscose

Staple Fibre

250 Kgs to

252 Kgs

Rs 74

ii. Raw Material Consumption per day :

a. Cotton : 10 Balesb. PsF : 12 Balesc. VsF : 3 Bales

iii. Number Of Machines

a. Mixing : No machineb. Blow room : 2c. Carding : 50d. Drawing : 10e. Simplex : 13f. Ring Frame : 96g. Winding : 12h. Packing : No machine


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PRODUCTION PROCESS

MIXING

BLOW ROOM

CARDING

DRAWING

SIMPLEX

SPINNING

WINDING

PACKAGING


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PRODUCTION PROCESS

A. MIXING

Mixing is the process of combining different varieties of cotton in

order to prepare the desired quantity and to produce the yarn of

expected quality at an expected price. Cotton is of different quality and

variety as it is purchased from different states.

Mixing is done in order to bring uniformity in the quality of raw

cotton and humidity etc. The proportion of different varieties of cotton

to be mixed is decided in order to produce the desired count. After

hand mixing the bale feeding is done. Cotton is passed through

different process for cleaning. It is the process of opening and cleaning

and is known as blow room process.

B. BLOW ROOM

It is one of the primary activities of the production process. Here

cotton is brought down to in proper cotton. There are five hating points

in the blow room. The impurities in which cotton are made loose and

they are rolled in sheets of 40 meters. Each meter roll is called a ball or

lops. They are transferred to the carding department.

C. CARDING

In this process parallelization, cleaning and drafting is done. This is a

process of Individualization, which means that material is separatedfrom fiber and the resultant product is called the silver, which is used


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in next process. There is further removal of water about 5% of the lap

weight. Hence the carding can be considered as the most important

process of cleaning section.

D. DRAWING

In this process the uniformity of silver is increased. Hence the eight

carded silver is converted into one silver. This is a common process for

both carded yarn and combined yarn. Blending parallelization and

drafting of the carded / combined silver is carried out in this stage. To

maintain the court constant the length of the resulting silver is

increased using drafting in which the delivery rollers rotate faster than

the previous rollers. This will result in the extension of silver. In the

process the combined or carded silver is converted to draws from

silver.

E. ROWING

Silver from the draw flame are generally to course in lank number

for immediate presentation to the spinning frame for drafting and

twisting in to yarn. There for the silver is subjected to one or more

drafting process before being erected to the spinning frame. But any

reduction in the lank of silver would make it so weak and difficult for

handling. Hence a certain amount of twist is inserted and wounded

bobbins for further processing. The output of this process is known as

fly frame, rowing frames and speeders.

F. SPINNING. The number of machines in this process is 114. The machines work

continuously and automatically for the length of time needed to

produce a full bobbin of yarn, after which these bobbins are removed

and the machine is set to make another set of bobbins. The capacity of


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the mills expressed the term of number of spindles. The capacity of the

mill is limited to 49,532 spindles.

G. DOUBLINGDoubling signifies the twisting together of 600 or more strands of

single yarn in to a simple or compound form for the purpose of making

sewing threads, lace, embroidery yarn, hosiery yarn, netting yarn, special

purpose yarn and fancy yarn. The doubled or folder yarn thus produced

has greater strength, elasticity and smoothness than a single thread ofequal count.

H. WINDINGThe yarn produced from the spinning process is wounded on a

cone by using winding machine. The tests are done is cone winding stage.

The spinning process is repeated along with winding and rewinding

breakage study. The output of the process is the corn yarn.

I. REELINGPrior to the weaving operations, the yarn is reeled into links of convenient

is usually reeled so that firm consolidated package can be obtained their

by minimizing transport charges. The reeling operation consists of

winding the yarn of swifts as they are technically termed having a

circumference of 54 inches.

J. PACKING

The output of the production process is in the form of cone yarn by

corn winding and hank yarn by reeling. It is packed in bale or board which

contains 180 Kg. 120 yarns are equal to one lea and 7 leas are equal to one

hank. The production is of various counts


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PROCESS OF MANUFACTURE

Cotton

Cotton bales are opened and mixed in blow room. The mixing is

processed through blow room to clean the cotton and converted in laps.

The lap is processed in carding to remove short fibers, to clean the

cotton laps further and also to reuse the lap to card silver form.

The card silver is processed in drawing for parallelizing the fibers

and to get an even silver. The drawing silver is processed through

simplex machine and made in to roving. The required twist is also

imparted in the roving.

The roving obtained from simplex is fed on to ring frame when the

desired count is obtained after giving required draft and importing

necessary twist required getting sufficient strength.

The yarn obtained as above on the form of cops is fed to cone

winding machine to obtain around 1.25 kg weights in the form of

cones. The cones are packed in HDPE bags to get a net weight of 50 kg

each.

Polyester Cotton Blend

Here the process is identical as above expect mixing of polyester and

cotton silver from carding section are mined and processed from blow

room to cone winding section just like cotton to get the blend

proportion 80:20 in the final yarn and the packed in HDPE bags of 50

Kg each.


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a) Polyester ViscoseHere the required proportions of polyester 55% and Viscose fiber

45% are mixing with a separate tin for identification. The rest of the

processing is one just like that of cotton yard and packed in to HDPE

bags each net.

b) Staple FiberLike cotton this is processed expect a mixing stage where anti

static agent is also avoided.

4.2. QUALITY CONTROL DEPARTMENT

This function assumes development, maintenance and improvement

of tasks and procedures of QC management, QC policy and also

quality control over various projects, production, selling and other

activity. Certified procedures and guides are the basic documentation

of QC management system. After all required documentation for

development of QC policy has been combined which is confirmed, for

example, with Standard MS ISO 9001, the quality control will be

performed with reference to and in accordance with the collected

documentation.

FUNCTIONS

Evaluation of quality level. These evaluations are conducted bymeans of the original or adopted techniques at the enterprise, in its

divisions, branches. The evaluations can be practical and numerical.

The first one is conducted on production meetings of experts by means

of discussion of certain lines of business procedures and operations at

the enterprise. Numerical evaluation is settled up mainly on the basis of

model Total Quality Management (TQM).


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Internal and external audit. This function assumes internal andexternal audit of the quality management system and quality assurance

in divisions and enterprise services. It is possible to tell that this is the

most important function. It is a feedback of quality control system. It is

a point that distinguishes a modern quality management based on

Standard MS ISO 9000 and TQM from all previous models.

Documentation. The function is aimed to create and keep documentson the projects for formalizing task and processes, keeping statistics

and getting lessons learnt. The enterprise can quickly get valued

information and use it to make correction to ongoing activity and

improve quality management.

Quality Control Department Chart

In SQC the count, strength, unevenness %, thin, thick, neps, etc are

usually checked.

Here 3 counts are produced 62pc. 60 pc & 45 pc.

Wrap reel (counting machine) 120 yards.

Uster (unevenness, thin, thick, neps) checking machine.

Lees strength tester (the strength is checked).

In this department investigators are working under the

supervision of manager of quality control.

QUALITY CONTROL

MANAGER

INVESTIGATOR INVESTIGATOR INVESTIGATOR


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4.3. PERSONNEL DEPARTMENT (H.R.DEPARTMENT)

The human resource department is devoted to providing effective

policies, procedures, and people-friendly guidelines and support within

companies.

The most common Human Resource jobs that are grouped in the

Human Resource Department are the Human Resources Director,

Human Resources Generalist, and Human Resources Assistant.Additionally, some organizations have a Vice President of Human

Resources and employees who are organized around providing a

specific component of Human Resource services including

compensation, training, organization development, and safety.

So in order to handle precious human resources Kerala Lakshmi

Mills is maintaining a Personnel department. Total strength of the mills

is 692. It includes 345 permanent employees, 220 Gate badalies, and

also trainees, koolies etc. The main functioning of the mill and

maximum efficiency is connected with temporary workers. Workers

can be divided into two categories, i.e. skilled workers and unskilled

workers.

SKILLED WORKERS

In this group it consists of workers who engaged in the

maintenance win, electrical section, work shop etc. This people will be

trained well in their respective departments.


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UNSKILLED WORKERS

The operating workers who engaged for machine operation are

unskilled i.e. in different department, they are engaging after a

particular training section. Regarding the staff strength of the mill staff

can be divided into three categories i.e. managerial staff, technical staff

and clerical staff. In Kerala Lakshmi Mill personnel department is

classified into 3 sections.

1. Industrial Relation.

This section concerned with maintaining a good relationship

with management and workers and to act as the role of a regulatory

mechanism in resolving any industrial disputes in the firm.

2. Establishment

This section handles recruitment, placement and severance of

employees. The main functions are:

Taking timely action on redressed employees grievances.

Maintenance of SC/ST/OBC quota for recruitment and promotion asper government directives.

Originating proposal of employees in their new position.

Fixation of salary.

Processing of accident leaves.


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3. Trading and Industrial Development

The main functions of this section are:

Manpower planning.

Maintenance of scheduling incentives.

Apprentice training.

Structure of Personnel Department

PERSONNEL

MANAGER

HEAD TIME

KEEPER

SECURITY

OFFICER

SENIOR TIME

KEEPER

SECURITY

GUARDS

ESI, PF

CLERK

PRODUCTION

CLERK

WAGE

CLERK


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WORK TIMINGS

The company works on all days in the week. The company

works for 24 hours in 3 shifts. The time of the 3 shifts and general

shifts will be as follows.

General Shifts - 7 am to 3.30 pm

1st shift - 7 am to 3.00 pm

2nd shift - 3.00pm to 11.00 pm

3rd shift - 11 pm to 7 am

The office staff will works from Monday to Saturday and their work

timing is 9.30am to 5.00 pm.

DEFINITION

According to Edward Flippo Personnel Management is the

planning, organizing, directing and controlling of the procurement,

development, compensation, integration, maintenance and separation

of human resources to the end that individual, organizational andsocietal objectives are accomplishes.


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FUNCTIONS

1. Recruitment.

Recruitment forms the best stage in the process, which continues

with selection and ceases with the placement of the candidate.

Recruiting is the discovering of the potential applicants for actual or

anticipated organizational vacancies.

KERALA LAKSHMI MILLS Ltd has its own policy for

recruitment. It makes use of both internal and external sources for

recruiting its personnel. Advertising in news papers and magazine is

the most commonly used method of recruiting. It also recruits from

among its existing employees. Whenever any vacancy occurs

somebody from within the organization is upgraded, transferred,

promoted, or sometimes demoted. Minimum qualification required forselection is 10th standard pass. Recruitment of workers is done on the

basis of skill test and physical test. Then an interview and later a final

interview are conducted.

The worker who is selected at first is selected as learner, after 6

months he/she is promoted as senior learner. If the wok of senior

learner is up to standard he is appointed as the permanent employee of

the organization.

In staff recruitment, interviews are conducted by heads of

respective departments. Then they join as trainee and are required to

submit a training report to head of respective department.

2. Salaries & WagesPersonnel department makes decision on salaries and wages.

These are calculated per month for each employee keeping into


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consideration the attendance. Employees are paid differently during

training period.

3. Attendance ProcedureFor managerial staff, duty timings are 10am to 5 pm about which

they are very particular. Even if a staff member is 5 minutes late in the

morning without any specific reason, he is marked for half-day leave.

Workers are doing their work in three shifts of 8 hours each. The staff

of each employee goes on changing every month. Records of all this

are maintained by the personnel department.

4. Provident fund SchemeIn 1932 P.F. Act has been introduced with a view of providing

maintenance to the family of the employee after his retirement or

death. This act is applicable at Kerala Lakshmi Mills Ltd. In P.F

scheme employee has to contribute 12% of his salary and management

has to contribute the same proposition to the employees share. Anemployee is eligible for taking loan from P.F, but certain exemptions

are there. During the time of his retirement he and his family members

are eligible for that amount.

5. ESI SchemeThe main objective of Employees State Insurance Scheme is

employee welfare. It comes under the provision of Employees State

Insurance Act 1948. Employees are benefited, especially in case of

accident or death. The employee has to contribute 1.5% of his salary

and company 4% ESI to avail the benefit.

6. Grievance Handling Procedure

A grievance is nay dissatisfaction whether expressed or not,

whether valid or not, arising out of anything connected with thecompany, which an employee thinks, believes of even feels to be


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unfair. In Kerala Lakshmi Mills Ltd if workers have any problem they

can immediately report to the supervisor. If it cannot be solved at this

level they can directly report to head of respective department or to the

General Manager.

7. Trade UnionA trade union is any combination of persons whether temporary

or permanent, primarily for the purpose regulating the relations

between workers and employees or between workers & workers for

imposing restrictive conditions on the conduct of any trade or business

and includes the federation of two or more trade unions. In Kerala

Lakshmi Mills Ltd main trade unions are INTUC and CITU. These

trade unions are creating such an environment in the organization,

which maintains good relationship between workers & management.

8. Salaries & PerksIt is the Personnel department that is dealing with calculating of

Salaries & Perk. The various perks which are provided by the company

to its employees are:

HRA ( House Rent Allowance) LTA ( Leave Travelling Allowance) Subsidized food & Canteen facilities. Employees Welfare Fund Employees Children Education Allowance Personnel accident insurance scheme. Loan for house building Employees State Insurance (ESI)- 6% of salary- i.e. 1.5% given by

employee himself and 4.5% of salary given by Organization.


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9. Leave Rules

Casual Leaves- 10 days per yearMore than 3 casual leaves at a time or in a month are not allowed.

Casual leaves will be lapsed if not utilized.

Sick LeaveSick leaves can only be obtained after 6 months of recruitment. To

avail the benefits under these scheme employees should submit

medical certificate.

10.Advance & LoansPersonnel Department takes care of decisions regarding

advance and Loans. Advances are given according to the requirements

of the customers.

SECURITY DEPARTMENT

This department is responsible for the security of the entire

company. Their main duty is at the main gate of the factory premises

from where all the goods enter or leave the company. The security

department is maintaining the following registers:

I. Inward register for Incoming material

It contains information about date, item, quantity, and place

from where it is coming, bill number, medium of transport, vehicle

number etc. The concerned person is allowed to enter the factory

premises along with material that they are bringing. A stamp is put on


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the bill that they are bringing. Stamp contains information regarding

date, entry number etc, then the concerned person goes to the store and

from there he goes to the accounts department where the payment is

done after confirming the stamp.

II. Outward Register- for outgoing Staff

In this register quantity, date and time of dispatching the

material is recorded. The concerned authority checks quantity

mentioned in the gate pass.

III. Visitors Register

Visitors register is maintained to record the name of the person

coming, his purpose of visit, whom he wants to meet etc. His time of

arrival and the time at which he is leaving the company etc will also be

recorded in this register.

IV. Vehicle Incoming / Outgoing Register

This register is maintained to have a record of vehicles coming

and going out of the company. Visitors are not allowed to park their

vehicles along with the vehicles of employees. Separate arrangements

are made for parking the vehicles of both employees and visitors.

V. Guards Duty RegisterIt contains details of daily duties of guards in shift wise. The

security department will also have the 3 shifts that are performed in the

organization. The shift changing time of security staff will be half an

hour before the ordinary shift timing of the workers.


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4.4. FINANCE DEPARTMENT

In the modern business society finance functions are drawing

increasingly more and more attention of all those who are responsible

for running financial administration. There is always a problem with

every organization for managing its expanding and ambitious plans

with financial resources

The objective of analysing the financial statements and account

is that the books of accounts provide are true and fair view of the

affairs of the financial position of the company. The financial

department includes Accounts Manager, Chief Accountants, Assistant

accountants and cashier. If the financial department of the company is

accurate and efficient, it provides a smooth working flow to the

company.

DEFINITION:

Finance department is defined as simply the task of providing

funds needed by the enterprise on the terms that are most favourable to

it keeping in view its objectives.

According to F.W. Paish Finance may be defined as, in modern

money using economy finance may be defined as the provision of

money at the time it is wanted.

NATURE AND SCOPE OF FINANCIAL

MANAGEMENT

Nature of financial management refers to its functions and scope

of its objectives. The scope and coverage of the financial management

have gone fundamental changes. In the early years of its evaluation it


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was regarded as a branch of economics relating to the raise of funds,

but now, in the current literature pertaining to the growing disciplines,

financial management is treated as a management activity.

This is concerned with the planning and controlling of the firms

financial resources as a separate activity or discipline. The finance in

the modern business world is the life blood of the business economy.

We cannot imagine a business without finance because it is central

point of all business activities.

MAIN APPLICATIONS

1) Payroll System2) Processing of Input from payroll department and payroll calculations.3) Banks advise statement preparation.4) Preparation of overtime hours statement and man hour statement.5) Preparation of earning and deduction summaries.6) Monthly non managerial increment processing.7) Automatic payroll journal generation for payroll accounting.8) Pension computation.9) Estate information report.10)Preparation of half yearly and yearly statement of pension details.11)Insurance scheme.12)Generating gratuity data for actuarial.13)Yearly performance incentive computation for mill staff.14)Contract employee.15)Monthly and half yearly statement.16)Provident Fund application.17)Loan request processing.18)Members balance statement preparation.19)Monthly contribution statement preparation.20)PF. Annual Ledger preparation.


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METHOD OF ACCOUNTING

1) Preparation of monthly journal, ledger and trial balance.2) Preparation of half yearly consolidation of ledger.3) Link Schedule preparation.4) Profit and Loss account preparation.5) Balance sheet preparation.

ASSET ACCOUNTING

1) Account the asset of the organization and calculate the depreciation forthe year.

2) Processing of the transfer of the shares.3) Preparing proxy form for AGM.4) Issue of dividend, warrant etc.

FINANCIAL DEPARTMENT CHART

FINANCE

MANAGER

SALES IN

CHARGE

COST

ACCOUNTANT

CASHIER CHIEF

A/C

PURCHASE

OFFICER

CLERKS CLERKS CLERKS CLERKS


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The finance department is broadly classified into internal audit

department and finance and accounts department. Under the internal

audit section, there is a technical audit and another which is headed by

auditor. Under the finance and accounts section, there is five sub

sections. These sections are sales in charge, coast accountant, cashier,

chief accountant and purchase officer.

SYSTEM OF ACCOUNTING

Computerization is not yet completed in the mill. Few years

before it was difficult to keep and maintain records and files in the

mill. Now the computerization of the mills is going on. So in future all

the files and records can be easily handed in the mill.

AUDITING SYSTEM

The mill conducts 4 types of auditing. They are:-

Internal audit conducted by NTC Bangalore. Statutory audit conducted by chartered accountants. Auditing by AGs office. ( Govt Of India) Central excise duty.

TAX SECTION

There is a particular department responsible for tax accounting

under the finance department. This department is concerned with the

accounting of taxes in the following ways


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Sales Tax

CST (Out of Kerala) - 3%

KGST (VAT) - 4%

Service tax - 2.3%

Education cess - 2 % of service tax.

No excise duty

Income Tax

Income Tax1.03 %

Monthly remittance of tax.

CREDITORS PAYMENT SECTION

Sales of yarn are made as far as possible against cash/ DD.

However when credit becomes inevitable due to market or seasonal

requirement credit is given up to 30 days from the date of supply is

available to dealer against acceptable of security/ selective credit for all

products. The credit periods are decided by management to meet

contingencies.

CASH SECTION

Cash section includes a cashier, junior clerk, senior clerk and a

petty cashier. Petty cashier is responsible for recording petty expenses

and it is under impressed system. Cash section is included cash book,

day book and inwards and outwards book.


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4.5. MARKETING DEPARTMENT

DEFINITION:

The Chartered Institute of Marketing define marketing as The

management process responsible for identifying, anticipating and

satisfying customer requirements profitably.

In the words of Philip Kotler, marketing means Satisfying needs

and wants through an exchange process.

Marketing is means a social and managerial process by which

individuals and groups obtain what they need and want through

creating and exchanging products and value with others.

MARKETING CONCEPT

The marketing concept is the philosophy that firms should analyze

the needs of their customers and then make decisions to satisfy those

needs, better than the competition. Today most firms have accepted the

marketing concept, but this has not always been the case.

When firms first began to adopt the marketing concept, they

typically set- up separate marketing departments whose objective it

was to satisfy customer needs. Often these departments were sales

departments with expanded responsibilities. While this expanded sales

department structure can be found in some companies today, many

firms have structured themselves into marketing organizations having a

company wide customer focus. Since the organization excist to satisfy

customer needs, nobody can neglect a customer issue by declaring it a

marketing problem everybody must be concerned with customer

satisfaction.


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Marketing Concept: Determine Consumer Needs/Wants and fill thembetter than anyone else, at a profit.

The Consumer is thus the starting point.

Marketing starts with consumer needs.

STRUCTURE OF MARKETING DEPARTMENT

The company is having market department at Head Office

headed by general manager of marketing. Marketing information is

collected from various depots through local representatives and

analysis will do at market departments. The company having yarn basis

sales committee at head office headed by one of the full time general

manager of marketing also by general manager technical and other

general managers from different mills.

The committee will review the marketing information and find

the product and prices of different count of yarn. The allotment of yarn

bags in various depots are accepted on weekly basis. The mill will be

GENERAL MANAGER

MARKETING

GENARAL

MANAGER

MARKETING STAFF OF

VARIOUS

DEPARTMENT AGENTS

DEPOT KEEPERS

(CONSIGNED

AGENTS)


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sending the yarn to the godown in the respective count and the

consignment agent selling the yarn to retailers at market senders such

as Harendi, Megoan etc. After the receipt of the goods the depot

keepers remitting the sale proceeds to mills.

The channel of distribution is being carried out the consignment

agents. The yarn products are developed according to the demand

received from the above market senders. The major product of the

mills are 62s PC yarn, 60 PC yarn and 45 PVC yarn. The mill is having

testing lab to looks into the quality of the product.

CHANNELS OF DISTRIBUTION

Channel of distribution means the path or network or the pipe

line through which the products are made available to the consumers,

providing time and place utility.

In the words on Philip Kotler, Channel is a set of

independent organizations involved in the process of making a product

or service available for use or consumption

The marketing is done by the company through identifying agencies.

COMPANY

IDENTIFYING

AGENCIES

WHOLE SALERS RETAILERS

WHOLE

SALERS

RETAILERS CUSTOMERS

RETAILERS CUSTOMERS

CUSTOMERS


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MARKETING OF THE COMPANY

Bombay yarn market and the local power looms are the market

for yarns. The main product are targeted to power looms mainly

Birane, Malgoan, Inchalaring etc. Depot keepers are doing the sales of

yarn. It is done through agents.

To fix the market on trend it is not fined or fluctuates down or

up. There has been a bargaining power. The quantity rate is finding at

YPC meeting. Head Office will approve the rate and send a fax

message to the mill. The price is fixed based on count, rate and

quantity.

If the yarn is send to the godown, one copy of invoice is send to

NTC godown keeper, one copy to concerned part, one to head office

and the one will kept in the office file.

The retail showroom has also improved their performance. Thetotal turnover of the retail out lets has improved to Rs 13.45 crores as

against to Rs 7.06 crores during the previous year. The corporation has

also supplied the cloth to various government departments and public

sector undertakings.

Customers:

The customers of the company are follows:

1. Cloth manufacturers.2. Whole sale dealers.3. Some retailers.4. Garment manufacturers.


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Competition:

The main competitions are small spinning units from South India.

The company competes with power loom sector and readymade sector.

Now there is a trend that most of the people would like to buy

readymade dresses. They are not at all interested to buy clothes from

tailors shop, because the prices of some readymade garments are

cheaper than cloths.

Commissions:

Company allows 1.5% as commission to the parties in

distribution. The structure of the payment of commission is as follows.

Through deposit (1.55% for yarns) In other state (1.5% for yarns)

Customer Service:

This is a positive step on the part of the company for the

customers. The customer service policy can be summarized as follows:

The company satisfies the colour and quantity requirements of thecustomers.

If there any defect in the product after sales, the company allows aconsiderable amount of discount or return the goods.


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At present, the product is concerned in the weaving mills of

Mumbai. The quality of the yarn supplied by the company is

comparable to international standards. However due to fluctuation in

the market price the company is able to realize the competitive rates.

The textile business is also affected due to import of fabrics as a result

of globalization. Further due to monetary and economic recession in

South Asian countries there has been reduction in demand for textileproducts forcing many exporters to turn to the same product of the

company.

So in those areas the company tries to enter through some sales

promotion activities through consigned agents and their brokers. The

brand name of the mill is Lakshmi mills packaging and its done at

hope ovals sacks (bag hopes) which is done by textile industry

department.


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SWOT Analysis is a strategic planning method used to evaluate

the strength, Weakness, Opportunity and Threats of a project or in a

organization. It involves specifying the objective of the business

venture or project and identifying the internal and external factors that

are favourable and unfavourable to achieve that objective. Specifically,

SWOT is a basic, straightforward model that assesses what an

organization can and cannot do as well as its potential opportunities

and threats.

The SWOT framework was described in the late 1960s by

Edmund P. Learned, C. Roland Christiansen, Kenneth Andrews, and

William D. Guth in Business Policy, Text and cases (Homewood), IL:

Irwin, 1969). The general Electric Council used this form of analysis in

the1980s.

Internal Assessment of the Organization

STRENGTH WEAKNESS

OPPORTUNITIES THREATS

SWOTANALYSIS

External Assessment of the Organization


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5.1. STRENGTH

Presence of highly technically qualified executives Company and its workers are strongly committed to quality Technical abilities of the machineries Well developed technologies Quality of the product Product is accepted in the market New mill as compared to other mills Good work culture is situated Very large asset base Adaptive to technology Frequent supply of electricity Very good Infrastructure

5.2. WEAKNESS

Prices of finished goods are controlled by government, but prices of theraw materials are decontrolled.

Unhealthy industry practices Less delegation of authority to department heads Fluctuation in raw material quality Employee morale at lower level is less High absenteeism Less efforts to motivate employees Shortage of labour Bad financial base


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5.3. OPPORTUNITY

Strong marketing network in South India 66 acres of land and infrastructure facilities Alternative less expensive source energy and other inputs The company can make use of the existing facilities more productively. There is an increase in the demand of cotton fabric in the national as

well as international market.

As a public ltd company, it gets more support from government

5.4. THREATS

Fluctuation in the prices of raw materials. Delay in taking decisions. Lack of product differentiation Stiff competition from other spinning and weaving mills. Increase in cost of production due to more wastage. Less basic and recreational facilities provided to the workers may

result in uneasiness among workers in future.


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6.1. FINDINGS

All the employees in the organization are aware of the disciplinaryprocedures prevailing in the organization.

Most of the employees are well experienced. The mill has established a name for quality of its yarn in the textile

industry.

Labour relations are smooth and labour problems are minimal. Most of the employees are males in the age group of above 45 years. Most of the employees monthly income is between 5000 and 10,000. Most of the employees feel secure in their job. There is no career development programme or performance appraisal

system in the company.

Most of the employees are satisfied with the grievance solvingprocedure of the organization


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6.2. SUGGESTIONS

Installation of additional machinery or man power will help to reducethe work load of employees.

It is advisable to provide training and development programmes toemployees in order to increase their efficiency.

Company can provide more job security so it will help to increase theemployee morale.

Company resources should be optimally utilized to make the companyprofitable.


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7.1. CONCLUSION

Kerala Lakshmi Mills is a name that stands for the quality of textiles.

It is a premier textile industry which has established a name for itself

by its extra ordinary performance during the previous years. Till last

year the company was generating a huge amount of loss that is crores

of rupees. But at present the company is coming back to track and

losses of the previous years has been considerably reduced. The main

reason for this come back is that the modernization is in vogue and the

productivity has improved.

The commitment and efficiency of employees has helped Kerala

Lakshmi Mills in capturing highly competitive market. Product quality

enables the organization to get the prominent place among the

corporate entries.


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BIBLIOGRAPHY

Online Sources:-

www.ntc.com

www.google.com

www.managers.com
http://www.ntc.com/http://www.google.com/http://www.managers.com/http://www.managers.com/http://www.google.com/http://www.ntc.com/

Documents

OS Original Report