3 My Os Report 2012 Anu

Krupanidhi Degree College, Bangalore 1

Table of Contents

EXECUTIVE SUMMARY ................................................................................................................ 3

1. INTRODUCTION ...................................................................................................................... 4

1.1 OBJECTIVES OF THE STUDY ............................................................................................ 5

1.2 SCOPE OF THE STUDY ....................................................................................................... 5

1.3 IMPORTANCE OF THE STUDY ......................................................................................... 6

1.4 ACHIEVEMENTS OF STUDY ............................................................................................. 6

1.5 LIMITATIONS ....................................................................................................................... 6

1.6 RESEARCH METHODOLOGY ............................................................................................ 7

2. INDUSTRY PROFILE ............................................................................................................... 8

2.1 STRENGTHS OF INDIAN TEXTILE INDUSTRY .................................................................. 11

2.2 WEAKNESSES OF INDIAN TEXTILE INDUSTRY .............................................................. 11

2.3 STATE SCENARIO ................................................................................................................... 12

3. COMPANY PROFILE ............................................................................................................. 13

3.1 HISTORY AND PHILOSOPHY ................................................................................................ 14

3.2 ANNA GROUP PROFILE ......................................................................................................... 15

3.3 PRODUCT PROFILE ................................................................................................................. 22

SCOOBEEDAY ................................................................................................................................ 23

TRAWELL DAY BAGS .................................................................................................................. 24

KITEX LUNGIES ............................................................................................................................ 25

KITEX BED SHEETS ...................................................................................................................... 26

MULL ............................................................................................................................................... 27

KITEX DHOTHIES .......................................................................................................................... 27

DAGO BERT .................................................................................................................................... 28

ADONIS & AGNA (INNER WEAR) .............................................................................................. 28

4. VISION AND MISSION .......................................................................................................... 29

4.1 FUTURE VISION OF KITEX LIMITED .................................................................................. 29

4.2 MISSION OF KITEX LTD ........................................................................................................ 30

5. COMPETITORS ....................................................................................................................... 31

6. ORGANIZATIONAL HIERARCHY ....................................................................................... 32


7.1 MARKETING DEPARTMENT ................................................................................................. 34

7.2 FINANCE DEPARTMENT ....................................................................................................... 42

7.3 HUMAN RESOURCE DEPARTMENT .................................................................................... 46

7.4 PRODUCTION DEPARTMENT ............................................................................................... 54

7.5 PURCHASE DEPARTMENT .................................................................................................... 63

7.6 QUALITY CONTROL DEPEARTMENT ................................................................................. 67

7.7 STORE DEPARTMENT ............................................................................................................ 70

8. SWOT ANALYSIS .................................................................................................................. 75

8.1 STRENGTHS ............................................................................................................................. 75

8.2 WEAKNESS ............................................................................................................................... 75

8.3 OPPORTUNITIES ................................................................................................................ 76

8.4 THREATS................................................................................................................................... 76

9. PORTERS FIVE FORCES MODEL THEORY ....................................................................... 77

9.1 THREAT FROM NEW ENTRANTS ......................................................................................... 77

9.2 AVAILABILITY OF SUBSTITUTES ....................................................................................... 77

9.3 BARGAINING POWER OF BUYER ........................................................................................ 78

9.4 BARGAINING POWER OF SUPPLIERS ........................................................................... 78

9.5 COMPETITIVE RIVALARY .............................................................................................. 78

10 MCKINSEY‟S 7S FRAME WORK ..................................................................................... 79

10.1 STRATEGY .............................................................................................................................. 79

10.2 STRUCTURE ........................................................................................................................... 79

10.3 SKILLS ..................................................................................................................................... 80

10.4 SYSTEMS................................................................................................................................. 80

10.5 SHARED VALUES .................................................................................................................. 80

10.6 STYLE ...................................................................................................................................... 80

10.7 STAFFS .................................................................................................................................... 80

11. FINDINGS .................................................................................................................................. 81

12. SUGGESTIONS ................................................................................................................... 82

13. CONCLUSION ..................................................................................................................... 83

14. BIBLIOGRAPHY ................................................................................................................. 84

15. APPENDIX ........................................................................................................................... 85

15.1 ABBREVIATIONS .................................................................................................................. 85


EXECUTIVE SUMMARY

The Internship report entitled “ORGANIZATION STUDY” was conducted in KITEX LTD

at Kizhakkambalam, Kerala. KITEX.LTD is one of the leading textile manufacturing

companies in Kerala. The aim of the study is to understand the working of the organization in

general. This study gave me an opportunity to understand various functions and process of

various departments.

The study is mainly based on the details collected from each department. Each and every

activities of the company is studied carefully with the data available. The study is descriptive

type undertaken by personally visiting the firm. The methods used for collecting data‟s are

primary and secondary. Consultation with the manager of various departments has helped me

to fetch primary data‟s.

The main objective is to make an overall study of the company and the various function of

different departments, and to get an idea about strengths and weakness of the company with

regards to its performance in the industry, in this study Porter‟s Five Force model and

McKinsey 7s model used for analyzing the organization.

As a part of two year MBA program at the beginning of 3rd

semester, I had to carry on a

project in an organization in order to understand the organization and their function. This was

a great opportunity to get the first hand information and understand the functioning of the

various departments. As learning experience I have summarized my findings and made few

suggestions, which would be beneficial to Kitex Ltd in the course of long run.


1. INTRODUCTION

Organizations play major role all over the world. Different organizations meet people needs

and provide them with product, service or both. Due to globalization the world has become a

global village. This has very much helped people to get their needs. Different firms play

different role and has its own importance for my study. I have chosen KITEX LIMITED it is

a well reputed company in Kerala.

The organization study is carried out at KITEX LTD Kizhakkambalam, Aluva. The

organization study has been carried out to get an understanding of the structure and

functioning of the organization. The study was undertaken to get an exposure to the

functioning of different department of the company. The study helps to interact with the

managers of different department and to observe the workers at their work place and to act

together with them. The purpose of the study is to get a clear –cut idea about the functioning

of different departments of the company.

The study is confined to 45 days based on the primary data obtained from the head of various

departments, the middle level managers and supervisory staff. The study covers in brief in the

present position of the textile industry and the company. The study is made by personally

visiting the company at Kizhakkambalam.

The primary data have been collected by structured interview with the managers and other

personnel of the company. The information about manufacturing process has been gathered

by interacting with different personnel of the organization at various levels.


1.1 OBJECTIVES OF THE STUDY

Primary Objectives

To get touch with the industrial and organizational environment.

To understand the actual working conditions in the organization.

Secondary Objectives

To know the organizational structure.

To find out various departments in the organization.

To get familiar with the policies and procedures of the organization.

To know SWOT Analysis of the company.

1.2 SCOPE OF THE STUDY

The organizational study program in Kitex Ltd., Kizhakkambalam in Aluva helped to

understand the organizational structure, its functions.

The study is useful in assessing the quality and the performance of the company.

It also helps us to identify the strength and the performance of the company.

It also helps us to find out the area where the organization should improve.

It has helped to get familiar with the textile industry and also ascertain the present

position of the company.


1.3 IMPORTANCE OF THE STUDY

The study is mainly on academic ground. This study provides opportunities to acquire

practical knowledge through personal study and observation. This study reveals some

positive and negative aspects of the enterprise. The feedback of students will provide the

company authorities to frame their policies and frame effective program.

1.4 ACHIEVEMENTS OF STUDY

The training in Kitex helped me to acquire practical knowledge through personal study and

observation. The description given by the authorities is in many ways related to actual

situation. By observing various aspects of the company I came to know the following.

The type of business performed by the company and its structure.

Various functions and operation of the company.

Production process performed.

How factory is working in this competitive scenario.

1.5 LIMITATIONS

Time limit

Restricted collection of detailed information

The study could be conducted only on the day working hours and so the working

conditions of the employees during the evening and night shift could not be

understood.


1.6 RESEARCH METHODOLOGY

Research is a scientific and systematic search for pertinent information on a specific

investigation.

Descriptive research includes surveys and fact finding enquiries of different kinds. The

major purpose of descriptive research is description of the state of affairs as it exists at

present.

SOURCES OF DATA

Primary sources of data

Personal interview with managers of concerned department‟s detailed interview with

department head and other lower level workers in the company are the primary sources.

Secondary Sources

Official records

Annual reports

Organizational manuals

Departmental manuals

The study is done by personally visiting the company at Kizhakkambalam, Aluva. The

primary data has been collected by structured interview with general manager, and managers

of various departments other personnel including supervisors, workers etc. of the company.

The information about manufacturing process has been collected by observing functioning

of machines and equipments in the plant. The quality manual, publication of government of

India, ministry of textile, magazines, and internet was a useful source of the secondary data.


2. INDUSTRY PROFILE

The Indian textile industry, which has a tradition over 5000 years, is one of the verges of

crating history. If the industrialization by its colonial masters reduced the status of Indian

textiles as glorified converters, the rule based trading symbolized by the world trading

organization is expected to propel Indian textile as global clothier, secondly in China. The

journey from being colonial masters converted to become a nerve center for outsourcing

essentially captures the survival instincts of Indian textiles. Not a day passes without Indian

textile being featured in international forums and global magazines. Entrepreneurs and

corporate houses that have made necessary adjustments to meet global challenges could reap

windfall gains, while the other could marginalized. Nevertheless, it should be admitted that

adoption of world class technologies, economies of scale and global manufacturing practices

are very vital.

India‟s textiles industry is crucial to national economy. Besides, it plays an important role in

countries macroeconomic level. It contributes about 3 percent to the Gross Domestic Product

(GDP) of our nation, accounts for 14 percent of industrial production, and generates 8 percent

of the central excise revenue and contributes around 24 percent of total exports. The industry

is second largest employment provider after the agriculture sector employing over 38 million

people directly and another 50 million people indirectly.

The structure of Indian textile industry is bit complex. On one hand it is marked by the

presence of large scale organized players while on the other hand are the numerous small

scale units. The growth of small scale industries was backed by middleman in the textile

fabric trade .Traditionally the, textiles have had a long chain of intermediaries like

wholesalers, distributors, agent etc. These intermediaries were making arms of mills and

played an important role in maintaining contact with the final customer that is the retailer.

The intermediaries in order to sustain business resorted to buying from independent units.

The textile industry is characterized by the combination of cotton farm and ginning sector,

synthetic and manmade fiber industry, spinning sector, weaving sector, and composite mils.


The presence of a large number of players in each sector, none of which is large enough to

stimulate demand, has led to a situation where in the industry as a whole cannot compete

effectively or counter-attack of the completing rivals of the industry.

In the early period we can see that that the U.S and European economies restricted imports of

textile products from different countries through Multi –Fiber Agreement (MFA). India under

MFA received a quota of 2 percent and 3 percent in the U.S and European Union markets.

However in 1995, a new agreement on Textile and Clothing (ATC) was signed and this was

aimed at phasing out the MFA, this in effect ended the quota regime. This is of benefit to

developing nations like India, which has a big textile industry setup. The Indian textile

industry has a peculiarity that is not only the industry grows its own raw materials like silk,

cotton, jute, wool but also processes the same into high value products like fabric and

garments.

Our main competitors in the textile sector include China, Bangladesh, Sri Lanka, Indonesia,

and Pakistan. Like India, these countries too are cost effective producers due to advantage of

law labor costs. But we have advantage over them, say if we compare labor cost of china they

may have an upper hand but still we can see that biggest advantage we have is the capital

cost. One big advantage we have over the whole of Asia would be from outsourcing.

The Indian textile industry has a long way to go to achieve a sustaining competitive

advantage. The industry is very much fragmented and poor access to finance and technology

has been affecting the growth prospects of smaller manufacturers. We face problems due to

new market dynamics, high power cost, and lack of basic infrastructure facilities. We can see

that even though the Indian textile goods are known internationally through generic names

like Mysore Silk, Kancheepuram Silk, Bengal Cotton and Kashmiri Shawl, the irony is that

none of these has been promoted aggressively in the international market. We also suffer

from over capacity, outdated technology, labor problems and debt levels that strained profits.

There are heated debates on China‟s competitive edge over the Indian industry and it took a

center- stage and, with China often being pronounced as the biggest gainer after the removal

of restrictions or quotas on textile clothing. While India has an advantage of a low cost raw

material base and abundant cheap labor, it is competitive than China. Over the past few years,

companies to set up captive power plant to ensure regular supply and control cost. Replacing

high cost fuel with cheaper alternatives, such as LNG for Naphtha, was another to cut costs.


The removal of reservation of for small scale unit in the garment sector has also stimulated

the investment in the sector. Fabric makers have setup garments manufacturing units to cater

the need of export market. The fragmented nature of the industry has made its supply chain

unreliable. It takes Indian between 40 and 60 days to ship goods to U.S, while it takes China

around 15 days, because of the letters superior infrastructure.

The year 2004 saw the Indian textile industry waking up from its prolonged hibernation. The

industry witnessed intense preparation for the post quota regime on the part of players who

believed that India would be the next best alternative sources of apparel. A number of

companies took to upgrading their out dated technologies. The Indian textile industry is

racing against time and there is a feeling that if critical gaps are addressed in a time bound

manner, the industries can double its presence in the global market by 2011. In short, textile

industry is not afraid of facing external challenges or competition, if a level playing field is

provided and all basic issues confronting it are addressed. The challenges are totally from

within and centered on the frame work of government policies as the industry has done its

best by benchmarking itself with the global market leaders.

(www.cci.in, 2012)


2.1 STRENGTHS OF INDIAN TEXTILE INDUSTRY

India has rich resources of raw materials of the textile industry. It is one of the

largest producers of cotton in the world and is also rich resources of fiber like

polyester, silk, viscose etc.

India is rich in highly trained man power. The country has a huge advantage due to

lower wage rates, because of low labor rate the manufacturing cost of textile

automatically come down to very reasonable rate.

India is highly competitive in spinning sector has presence in almost in all process

of the value chain.

Indian garment industry is very diverse in size manufacturing facility type of apparel

produced, quality of output, requirement of fabricated

2.2 WEAKNESSES OF INDIAN TEXTILE INDUSTRY

Indian textile industry is highly fragmented in industry structure, and is fed by

small scale companies.

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

intention to help out small scale companies across the country of the industry.

Indian labor loss is relatively on unfavorable to the traders and there is an urgent

need of labor reforms in India.

India seriously lacks in trade pact membership, which leads to restricted access to

the other major market

(www.cci.in, 2012)


2.3 STATE SCENARIO

The southern states have a rich legacy of traditional textiles. They are the irrefutable textile

Maharajas of the country; churning out enviably stunning silks and cotton that are lapped up

by people all across the continent .the textile industry generates huge revenues for Kerala.

Thrissur is famous for the textile industry. Thrissur is also famous for its hosiery mils.

Lakshmi Mills of pullazhi, Rajagopal textiles of Athani, Alagappa Textiles of Alagappanagar

are famous for their textile industry. Besides weaving saris, Kerala also produces premium

quality lace and embroidered goods. It is usually done by women artisans. Caps are produced

in bulk at Kasargod which is then exported to Gulf and African countries.

Kannur, around 350 Km north of Kochi, is Kerala‟s leading textile export hub. Its export of

textile products is worth around Rs 3 billion a year, according to industry sources. As the US

Dollar weakness against the rupee, the going is getting tough for textile exporters here. The

dollar, which fell around 15 percent from March this year, has burned a Rs 450-million

($11.4 million) hole in the pockets of exporters .Kannur has around 40 textile export units.

The sector employees are around 50,000 people in the district.

The major competitors were MCR, ANGEL, JANSON, RAMRAJ etc.


3. COMPANY PROFILE

Anna Group‟s weaving unit, Kitex Limited was established in 1975.the company is engaged

in the production of fabrics made of cotton and other blends, grey cloth, bed sheets and

lungies. Through the years, the company has carved a niche for itself in this highly

competitive industry with its tradition of world-class quality.

Kitex is engaged in production of fabric made of cotton and other blend, grey cloth, bed

sheets and lungies are available in four various types-executives, medium super, medium and

economy all are priced differently. Kitex whit gives you an array of white dhothies single as

well as double. It becomes with streaks of colors and gold to add to the looks your dhothies.

We have carved a niche for itself in this highly competitive industry with its tradition of

world-class quality.

The company has a well-organized production department and is committed to 100 percent

percentage quality in all the production process. In the production department Kitex has 480

power looms and 20 automated looms. There are almost 650 workers in the plant. They use

both automated and power looms in the production process. The annual sales range is

between US$10 million-US-$50 million. Kitex follows a line organizational structure and

their span of management is narrow due to this they have the advantage like reinforcing

authority relationship by emphasis of status given, preventing cross communication etc. Kitex

products are marketed through 1500 authorized dealers. Kitex fabrics are now exported to

many part of the world. Kitex is going for a major expansion plan to augment the production

capacity. At the dawn of new millennium Kitex entered in to the luggage and baggage under

the brand name of ScooBee Day.

( (http://annagroup.net/the-group.php, 2012)


3.1 HISTORY AND PHILOSOPHY

More than three decades age in1968, when Mr. M.C .Jacob founded the Anna Aluminum

Company. He made a break with the past. Belonging to an affluent family of plantation

owners, he ventured in to the risky world of manufacturing industry and hoped for the best,

while working very hard to make his maiden venture to a great success.

Today the group is involved in manufacturing of aluminum sheets, circles, vessels and

utensils, spices and fabric, school bags, garments and marine exports etc. The Anna ranges

vessels and utensils are highly popular in domestic market and in the Middle East, U.S.A,

Africa and Australia. The group of turnover is around 200 crores.

Anna Group, a Multi crore success stories began in 1968 is now spread heading the thrust in

the new millennium. From a company devoted to the manufacturing of aluminum vessels and

utensils, it involves spices and fabric, school bags, garments, and marine exports. It has

emerged as a multi dimensional giant with interest in various fields ranging from textiles to

spices to baggage. Anna Group, where quality is the buzzword has opened new vistas of

exciting challenges. Today Anna ranges of products are very popular in domestic market and

overseas.

( (http://annagroup.net/the-group.php, 2012))


3.2 ANNA GROUP PROFILE

ANNA GROUP OF COMPANIES

More than three decades ago, in1968, Mr. M.C. Jacob founded the company, he made a break

with past. Belonging to an affluent family of plantation owners, he ventured in to the risky

world of manufacturing industry and hoped for the best, while working very hard to make his

maiden venture a success. Today group is involved in the manufacturing aluminum sheets,

vessels, fabrics, garments, marine exports, medicine etc. The Anna range of vessels is highly

popular in the domestic market and the Middle East, U.S.A, Africa, Australia.

ANNA ALUMINIUM

It is the flagship company of Anna Group. Engaged in the manufacturing and marketing of

vessels and utensils as per ISI standards for the past three decades, it is presently the only

company having ISI Certification for vessels in Kerala. The company manufactures vessels

only using 99.5% pure aluminum ingots. The brand “ANNA” has become a household name

in Kerala due to its high standards of quality and workmanship. The company has more than

525 different varieties of vessels and utensils, marketed through more than 2500 dealer

outlets.

Anna Aluminum has a wide range of vessels to cater to all necessities of a modern day

kitchen. Depending on the various types of cooking and dishes, Anna provides more than 525

varied vessels and utensils. All products are made up of high standards and strict adherence to

quality. To maintain this quality, vessels and utensils are made by using 99.5% pure

aluminum. Anna group is the only company ISI Certification for all its products in Kerala.

The group‟s packaged cookware items were brought under a new brand name- Chakson.

CHAKSON

Chakson brand pressures cookers stormed into the market in 1993; and within

a short span of 4 years Chakson pressure cookers captured a sizeable share of the domestic

market.


Products: Thermal Cookers, Pressure Cookers, Multi Steamer, Non Stick Cookware.

KITEX LTD

Anna Group‟s of textile unit, KITEX LIMITED was established in 1975. The company is

engaged in the production of fabric made cotton and other blend; Grey cloths, Bed sheets,

lungies, Scoobee Day, Travel Day etc.

Products: Bed sheets, lungies, Scoobee Day, Travel Day.

The Kitex range of garments, fabrics and textiles include dress materials and traditional wear

like Lungies, Dhothies. The Kitex range of garments manufactured in the multi-crore factory

is a popular brand that is recognized not just within India, but Abroad too, catering to the

fashion conscious markets across the world. Made from 100% combed cotton, Kitex Bed

Sheets are suitable for all climates and come in variety of shades and designs. Experience the

warmth of smoothing nights that caresses your dream and lull yourself into relaxing sleep,

night after night with Kitex.

SCOOBEE DAY

From the house of Kitex has a wide range of school bags which became an instant hit and

Scoobee become a close companion to all school kids? With shoulder strap cushions and rear

padding for added comfort, Scoobee Day comes in various color combinations. The unique

features include special pouch for water bottles, Tiffin boxes and even a secret pocket.

TRAWELLDAY BAGS

These are wide range of luggage and baggage products. Coming up with latest designs and

models, these travel and everyday travel luggage needs are designed to meet the modern

trends and requirements of customers. Made from the imported materials, the bags are

available in attractive styles and different color combinations

Products: Travel Bags.


ELLYS

Ayurveda is a traditional Indian system of medicine, recognized even by the world Health

Organization. ELLYS HERBAL EXTRACTONS makes use of the ancient secrets of

Ayurveda, to provide you with every day food supplements that can enhance your health.

Products: Ellys Gastro Herbal Digest.

DAGOBERT

Shirting and suiting are woven from the finest cotton, using the toughest materials that are

soft to touch when draped on your body. Dago Bert shirting and suiting‟s are available in

variety of colors and shades.

Products: Shirting and Suiting

ADONIS

ADONIS is the brand name of innerwear for men. Adorn is a range of refined vests and

briefs. Its 100% combed compact cotton keeps skin free of itches, black spots, prickly heat,

boils etc.

AGNA

AGNA a range of Bras and Panties ensure seamless fit and finish. The smooth elastic used

makes the skin feel fabulous and the label free stitch ensures flawless comfort.

SARASPICES

Sara spices are the condiment producing unit of the Anna Group. It is involved in the

production and exporting of curry powder, whole spices, etc. For the past two decades Sara

Spices and curry powders are known for its high standards of quality and hygiene and have

won accolades at home as well as abroad.

Products: Ready to Eat, Ready to Cook, Curry Powder.

(www.annagroup.net, 2012)


KITEX LIMITED

Anna Group‟s Textile unit KITEX LIMITED was established in 1975 at Kizhakkambalam,

Aluva in Ernakulum district. This prestigious company one of the vibrant division of Anna-

Kitex group of companies is a celebrity among industrial giant in our country. Their products

have high demand and they were trying to create and maintain their customers in this

competitive world with their high quality. The shares of the company are held by the

proprietors themselves. Kitex has strength of well experienced managers who guide the

organization toward excellence. Kitex has ISO 9001-2008 certification .Kitex Limited has

seven departments and they follow military type of organization structure. Through the years,

the company has carved a niche for itself in this highly competitive industry with its tradition

of world class quality of its products. The Kitex range of garments manufactured in the multi-

crore factories is that popular brand that is recognized not just within India, but Abroad too.

Catering to the fashion conscious markets across the world made from 100% cotton. Kitex

bed sheets are suitable for all climates and come in a variety of shades and designs.

Kitex Limited is union free company. The plant has the capacity to produce cotton fabric,

polyester blends, grey cloth, bed sheets, lungies, dhothies, fabrics school and college bags,

travel bags, inner wears, shirting and suiting, kids wear etc. The plant functions around the

clock in three shifts and it‟s have a capacity to produce 35,000 square meters per day. The

products are marketed through the network of over 2000 dealers.

The company was established to set up an efficient estate that provide technical, industrial,

financial and marketing facilities to power loom owners and to crate job opportunities . To

crate unemployed considerable infrastructure facilities have been built up by way building,

electrical distribution systems, supporting machineries for warping, sizing etc, to help power

loom owners. About 400 power loom were established in the premises under the banner of

Kizhakkambalam Textile Limited ( which has been renamed as Kitex Limited).The group got

higher regard for the welfare of the employees and public several charitable programs are

organized for the lower strata of the society. The group is also providing a very good

accommodation and canteen facilities to employee who hails from all over India. A market


survey done in 2007 consumers able products named TOP 20 PRODUCTS in Kerala, Kitex

got 11th

rank with a score of 201.8736. The rank decided on the basis of consumer‟s

acceptance or popularity.

QUALITY POLICY

We are committed to manufacture and deliver quality fabric, Bags and readymade garments

as per the costumes specification and requirements, efficiently in professional and

environment friendly on the time and at most customer satisfaction while during to become a

world class organization through continual improvement.

POLICIES OF KITEX LTD

Consumer satisfaction.

Social obligation.

Quality and standards products for domestic customers.

Profit maximization and consistency in profitable levels.

Optimum utilization of men, material and machine.

Employee‟s growth and satisfied work force.

Consistent and diversified growth.

Optimum inventory control.

Production through environmental friendly and safer methods.

Effective management practice and cost control system.

QUALIFICATION OF EMPLOYEES

Top Level : Professional qualified having sufficient industry experience.

Middle Level : Graduation and above with experience in relevant data(Both

management and technical)

Junior Level : Diploma/ industrial training certification in textile industry

experience.


ORGANIZATIONAL CONTRIBUTION TO SOCIETY

CORPORATE SOCIAL RESPONSIBILITY

As part of the organizations contribution towards the society, the KITEX LTD provides:

The company provides employment opportunity to about 2000 people.

It also provides good working environment to the workers and also ensures their

safety and interest.

The good produced are eco friendly and do not cause any harmful hazards to the

environment.

An ambulance service is provided to all BPL families of Kizhakkambalam panchayat.

The company provides free school bags to the anganavady students of

Kizhakkambalam panchayat.

( (http://annagroup.net/the-group.php, 2012)


VITAL STATISTICS

Name KITEX LIMITED

Address Kizhakkambalam, Aluva, Ernakulum.

Registered Office Kizhakkambalam

Nature of incorporation Private Limited company.

Nature of business Manufacturing cotton.

Brand name of product Kitex

Total build up area 1650000 sq. ft.

500 modern loom (CIMMCO/SULZER/RARER)

20 million squire meter of cotton and cotton blends.

Production capacity 3500 sq. meters day.

Employment potential 2000

Founder Mr. M.C .Jacob.

Chair man Mr. Bobby Jacob and Mrs. Mini Bobby.

Total capital employed 2 crores.

Annual turnover 100 crore

Bankers Federal Bank, ICICI, Canara Bank.

Managing Director Sabu Jacob

Auditor Varma & Varma, Ernakulum

(Kitex Ltd, 2012)


3.3 PRODUCT PROFILE

Kitex is engaged in the production of all verities of grey fabric made of 100% cotton. The

products manufactured by the company are industrial goods and consumer durable goods.

85 % of the goods (Grieg Cloth) are sold as such other companies per production units in the

textiles and garments. 15% of the cloth manufactured by the company is converted to lungies,

dhothies, mulls and bed sheets. Various units in Tamilnadu do this conversion. This

conversion process includes resizing, mercerized, bleaching, printing, dyeing etc. The

products sent for processing will take one and half month for completing the cloth and then

repacked to make it ready for dispatch.

KITEX BAG DIVISION

At the dawn of new millennium, Kitex entered in to the baggage and luggage industry under

the brand name “SCOOBEE DAY” and “TRAWELL DAY” respectively. Kitex have a wide

variety of travel bags, trolley bags, business bags, laptop bags and back bags under the name

of Travel day. The factory is engaged in continuous production of bags and quality of 14

lakhs of bags came out last year. The fabrics for the bags are mainly imported from China,

Taiwan etc. Sample for the design may be brought from outside the country to produce the

best quality design that can be matched with other international brands. New designs for the

bags are sketching using computers by various experts in the department. The production is

carried out on continuous basis. After the final stitching of the bags, each unit is taken

separately for a strict quality check. Besides that random checking is also made by quality

control system. Imported and domestic machineries are used in the factory which can

function continuously without any break. Computer programmed machines are also used in

the plant which can perform multiple task. The factory runs on one shift from 8:30 am – 6:00

pm. At the time of season the work starts from 8:00 am and is continuous up to 9:00 pm. In

such cases overtime allowance is given to the workers. There is no stiff competition for

scoobee day bags in the field of school bags. The bags are supplied in Kerala and Tamilnadu

and a share is expected to Middle East. The company is expecting a sale of 15 lakh units of

bags in the current financial year and they are also very keen to introduce newer models of

their brand to the ultimate customers.


SCOOBEEDAY

At the dawn of new millennium the new generation was presented with an innovative school

bag from Kitex, the main offshoot of Anna Group. Scoobee day bags are compactly designed

with unique features anti strain shoulder padding‟s and acupressure bud specially designed to

minimize the strain on the back and shoulders. Scoobee day, from the house of Kitex has a

wide range of school bags which became an instant hit, and Scoobee became a close

companion to all school going kids. With shoulder strap cushion and rear padding for added

comfort, Scoobee Day bags come in various color combination. Using ribs top fabric and leak

proof materials. Scoobee day are attractively priced. The unique features include special

pouch for water bottles, Tiffin boxes and even a secret pocket.

Features of Scoobee Day bags

Made from imported Dinner Nylon for durability.

Shoulder strap cushion to prevent shoulder pain.

15 different color combinations.

Soft padding and acupressure buds on the rear side to cushion your back.

Unique stitching using strong nylon threads.

Quality zip with zip guard to prevent water leaking into the bag.

Secret pocket to hold chocolate and money.

Special leak proof Tiffin box price at attractive price.

Bags for college and travel purpose also available.

Scoobee Day: My friend

One of the reason to this brand is hit among children is the brand phonetic resemblance to the

popular comic character Scoobee Doo. All the credit behind the success of the product goes

to advertising division of Scoobee Day bags. Scoobee Day adopted the strategy of hooking

the kids. The brand name itself was a hit and there was something more. The brand told a

story; the hero of the story was a mascot- a bee named Scoobee. Scoobee Day is positioned as

the best friend of kids. The brand all through it‟s a story has told the stories how Scoobee

helps the kids in distress, fighting those monsters those who tried to attack kids. The brand

also has the tagline “Scoobee Day en Changathi” (in Malayalam translated to Scoobee Day

my friend). The brand told consistent stories which involved kids being chased by dragons


and monsters and how Scoobee rescues the kids and tame the demons. The advertisement

containing the tagline and catchy stories of Scoobee helping the kids, made a very strong

impression in the mind of the kids.

PRODUCTS IN SCOOBEE DAY

o Romeo

o Gypsy –large and medium

o Pride

o Challenge- large and medium

o Promise – large ,medium and small

o Liberty - large, medium, and small

o Styleo - large, medium, and small

o Twinkle

o Delight – large, medium and small

o Hip top – large, medium, and small

o Hero plus- large, medium and small

o Nova plus

o Spark – large, medium and small

TRAWELL DAY BAGS

The Renowned Anna- Kitex Group manufactures of quality consumer products forayed into

the travel bag segment with its- Travel Day bags- wide range of luggage and baggage

products. Coming up with latest designs and models, these travel and everyday travel luggage

needs are designed to meet the modern trends and requirements of the customers. Made from

the imported materials, the bags are available in attractive styles and different color

combinations.


Travel Day Offers

Travel bags.

Trolley bags.

Business bags.

Lap- top bags.

Back- packs bags.

Beauty case bags.

KITEX LUNGIES

EXECUTIVE:-Superior qualities lungies available in various design and colors.

MEDIUM SUPER:-Comfortable lingoes you would love to drape. Available in

various design and Color combinations

MEDIUM:-Experience freedom and coolness with medium range of lungies, come to

you in warn color and in various designs

ECONOMY:-After a hard day‟s work, jump into lungies to ease your tension, to

smooth your senses and to feel relaxed.

Name Length Price

Executive 130cm x 200 cm 175 Rs

Medium 127cm x 200 cm 138 Rs

Medium super 127cm x 200 cm 150 Rs

Standard 127cm x 192 cm 105 Rs

Supreme 127cm x 200 cm 150 Rs

Economy 127 cm x 192 cm 126 Rs


KITEX BED SHEETS

SWEET DREAMS 50:- Beautiful bed sheets available in beautiful design and

pleasant to suit bed rooms.

SWEET DREAMS 60:- Beautiful king- size bed sheets available in beautiful design

and pleasant colors to suit our bed rooms.

NAME LENGTH PRICE

Sweet dreams 50 128 cm x 225 cm 177 Rs

Sweet dreams 60 152 cm x225 cm 199 Rs

Sweet dreams double sheet 225 cm x 175 cm 304 Rs

Duo 1 sd 60 bed sheet + 2

pillow covers.

152 cm x 225 cm 330 Rs

Solitude 1 double sheet 152 cm x225 cm 186 Rs

Sweet dreams king size 250 cm x 225 cm 408 Rs

Duplex 1 solitude bed

sheet + 2 pillow covers

152 cm x 225 cm 306 RS

Soft dreams king size + 2

pillow covers

225 cm x 250 cm 575 Rs

Sweet dreams DS + 2

pillow covers

225 cm x 175 cm 435 RS


MULL

NAME LENGTH PRICE

Economy 127 48

Medium 128 60

KITEX DHOTHIES

SMARTLINE:- White single dhothy with streaks of either dark red or dark blue or

dark green lines, which can be worn equally at home and out doors

SMARTLINE GOLD:-Cream color single dhothy with streaks of Gold Jerry lines for

special occasions.

READY WEAR:-Plain white single dhothy you‟ll love to drape. The anywhere

anytime wears.

SAMRAT: - Pure cotton white double dhothy with lines in 5 different colors to

choose from.

NAME LENGTH PRICE

Ready wear 128 cm x 200 cm 120 RS

Smart line single. 120 cm x 200 cm 135 Rs

Smart line gold single 127 cm x 200 cm 150 Rs

Smart double 127 cm x 385 cm 250 Rs

Smart plus double dhothy

white board Kara

127 cm x 835 cm 245 Rs

Smart ivory plus XL 127 cm x 400 cm 260 Rs

Smart premium RX 127 cm x 385 cm 310 Rs


DAGO BERT

Kitex also introduce shirting and suiting in the market under the brand name Dago Bert.

Material used for the shirting is pure cotton and for suiting is polyester mix viscose. Dago

Bert shirting and suiting are woven from the finest cotton, using the toughest materials that

are soft to touch when draped on your body .Featuring the most contemporary designs along

with the latest weaving techniques, Dago Bert shirting and suiting are available in a variety of

colors and shades.

ADONIS & AGNA (INNER WEAR)

Kitex has made its foray into the untapped lingerie with brand name Adonis & Agna.

ADONIS-Inner wear for men and AGNA- A range of refined vests and brief: and AGNA A

range of Bras & Panties ensures seamless fit and finish. Both brands are use specially

processed fabric which fells smooth and healthy even on the soft skin of new born.

( (http://annagroup.net/products.php?c=2), 2012)


4. VISION AND MISSION

A world class manufacturing company focusing on all around business excellence through a

Total Quality Management (TQM) system with committed leadership, effective team work,

delighted customers and satisfied employee in an environment friendly organization

4.1 FUTURE VISION OF KITEX LIMITED

To reach excellent quality standards in the coming years.

To keep in pace with modern technologies and complete.

To organize supply of material at minimum cost without any compromise in quality.

VISION

World Class Manufacturing

CUSTOMER POLICY

AND

STREM

QUALITY

PROCESS &

PEOPLE

LEADERSHIP

& TEAM

WORK


4.2 MISSION OF KITEX LTD

To manufacture fabric and processed fabric as per the specification effectively in a

professional and environment friendly manner, on time and at the right cost with high

customer specification to become a world class organization through continuous

improvement.

Objective:

BAG DIVISON

To increase the sales quantity of school bags by 10% with respect to the sales quantity

for the previous year.

To reduce the customer complaints by 10% with respect the previous year.

GARMENTS DIVISION

To increase the capacity utilization by 25% from existing level.

To increase the number of dealers by 25%.


5. COMPETITORS

From the marketing department, we can get an idea about their products, marketing

strategies, strength and weakness, competitors, competitor‟s strategy, attraction, weakness

etc.

Major competitors are MCR, Angel, Janson, VBC, KKB, Ram Raj and others. The

competitor‟s strategies are advertising, promotion through film stars. This is very high in the

case of MCR. Incase of MCR dhothies, a large variety of „Karas‟ have been introduced in the

market. They also sell different colors of lungies in market for attracting customers. In case

of Kitex Limited, the margin is comparatively low. The major problem of competitors

products are poor color dyeing, poor quality etc. compare to Kitex products other products

are cheaper. Most of the customers choose Kitex products because of its quality, most of the

customers choose other products because of the higher price of Kitex products.

Kitex products achieve maximum share in the period of festivals like Onam, X-mas, Ramzan,

Vishu etc. In normal case profit margin of products are 15 % to 25%.

In case of technical campaign Kitex introduced new weaving sulzer looms which are

imported from Switzerland. The only competitors having this type of technology are Janson.

The quality image and brand image of Kitex products in the market is very high.

Ownership Patter & Legal Frame Work Of the Organization

This is a private limited company with three directors. Most of the shares are held by them.

Kitex is limited to the extent of face value of shares contributed by them.

(http://www.mcrtextiles.in/), 2012)


6. ORGANIZATIONAL HIERARCHY

Kitex Limited follows the line/military organization structure. Managing director is the top

level. Other functional managers followed by him. The span of control of the organization is

narrow spans .The main advantage of this type of control is that close supervision, clear chain

of command and close control and fast communication between subordinates and superiors.

The model of the organizational design is mechanistic model.

An efficient management system plays a dominant role in the success of all business units. It

is this section that declares the level of output, its product in pattern, pricing technique,

marketing style and even the mode of conduct of its executives.

The Chairman and the managing director who are the representatives of the shareholders take

the important decisions of the group concerns .they perform strategic planning and policy

making function of Kitex Limited .for their help, the General Manager, top executives of the

company‟s Management are appointed .General Manager is responsible for the smooth,

efficient and productive functioning of the unit, from the production to the marketing.

The middle level management comprises of production manager, marketing manager,

finance manager, personnel manager, purchase manager, store manager and quality

controller.


ORAGANISATIONAL FLOW CHART

Chairman

Managing Director

General Manager

Finance

Manage

r

Personnel

Manager

Production

Manager

Quality

Manager

Store

Manager

Purchase

Manager

Marketing

Manager

Assistant

Manager

Weaving

Master

Assistant

Inspector

Purchase

Officer

Office

Assistant

Assistant

Manager

Executive

Manager

Personnel

Officer

Shift In Checkers

Staff

Clerical

Staff Supervisor

Clerical

Staff

Foreman

Welfare

Officer

Workers

Marketing

Executive

Assistant

Manager Assistant

Manager

Clerical

Staff

Sales

Executive

s

Sales

Man


7.1 MARKETING DEPARTMENT

MARKETING DEPARTMENT STRUCTURE

Chairman and Managing

Director

General Manager

Manager

(Fabric)

Manager

(Processed Fabric)

Manager (Advertisement

& Sales Promotion)

Assistant

Manager

Asst. Manager

(Processed Fabric)

Asst. Manager

(Buy)

Assistant

Manager

Media Art Work

Marketing

Executive

Sales

Executive

Marketing

Executive

Marketing

Executive

Sales

Executive

Sales

Executive

Marketing

Executive

Marketing

Executive

Marketing

Executive

Sales

Executive

Sales

Executive

Sales

Executive


Kitex Ltd has got a very good marketing department controlled by efficient and dynamic

marketing manager. Marketing manager gives the detail of sale to general manager and

managing director. The company markets its products mainly through dealers. The company

markets its product mainly through dealers. The company has a dealer network of more than

2500 dealers all over Kerala including garments and Scoobee day bags. Almost all KITEX

products are available at the dealer‟s shop.

The product are transported to the dealers by the dealers by the company‟s own delivery

vans, sales executives take the order of different item from dealers once in a month. These

orders are sent to the company and the office staff processes them. The good are delivered to

the shop through salesman. He acknowledges the good received by dealer and the same is

booked as sales in the book at account and other registers are maintained by the company.

Mr. K.C. Pillai is the Marketing Manager.

INCENTIVE SCHEME TO DEALERS

In KITEX LIMITED, cash discount is the main incentive given to dealer‟s .if a dealer

purchase more quality at the same time makes payment in cash immediately, cash discount is

allowed. Apart from these dealers is given quality discounts also when they purchase more

goods at a time. Sometimes the dealers get cash and quality discount simultaneously.

Main incentives are:

Cash discount – An incentive that a seller offer to a buyer in return for paying

a bill owned before the scheduled due date.

Advertisement support.

This year the company expects 20-30% increase in sales.


COORDINATION OF MARKETING ACTIVITIES

The marketing executive in KITEX follows certain procedures. All sales executives have to

report to the Assistant Manager about sales in every day. The Assistant Manager and

Marketing manager are in constant touch with the sales executives who are in the field

.meeting of all sales personnel in marketing department is presided by the General Manager.

In this meeting all the activities and achievement are discussed. New plans and strategies to

increase the sales are formulated and other issues are discussed.

MARKETING POLICY

The marketing policy of KITEX Ltd is, in such a way that it does not entertain middlemen .a

direct marketing approach is adopted and all the dealings are direct. There are no stockiest of

wholesalers. It can be seen that KITEX by following this approach has a more favorable

condition in the market situation.

MARKETING FUNCTION

KITEX Ltd has a dealer network of more than 2500 dealers who are spread all over Kerala. It

sells all over Karnataka and Tamil Nadu. There are direct outlets in Kerala and Tamil Nadu.

Dealerships are allotted only after assessing of credit worthiness, efficiency etc...Dealers

obtain the products upon order over the van of company and also products are delivered

either at go down or show room.

MARKETING STRATEGY

Marketing department of KITEX is very vigilant of its environment and also very conscious

of market potential, about their major competitors. Company‟s strategies, weakness etc...As a

result of stiff competition the top management has appointed a general Manager in the

marketing and he looks over all activities very efficiently.

Major competitors of KITEX are MCR, Janson, Angel, Ramraj etc they adopt various

marketing strategies like advertising in media using film stars like MCR using Mohanlal as

their brand ambassador. These companies also offer a wide variety of Kara‟s and colors of


dhothies, which attract customers. Their marginal price will be also high when they sell to

their dealers but in the case of KITEX the margin is very less. Also the firm enjoys a good

market owing to its quality even through it has a bit high pricing, but when compared to other

company‟s poor quality products due to polyester mix, poor color etc it‟s profitable. Profit

margin of product is 15-20% .KITEX also has technical competence; it has introduced new

automatic weaving sulzer looms from Switzerland, which expects Janson no other

manufacturers introduced.

MARKET SEGMENTATION

The marketing segmentation procedure of KITEX mainly focuses on surveys. Marketing

Manager Conducts survey process. This includes informal interviews with a focus group of

customers. This is done to gain a clear insight in their motivation, attitude and behavior.

Using their findings prepare a formal questionnaire, which is administered to a sample of

customer to collect data on the following

Brand awareness and rating

Product usage and pattern

Demographic psycho graphic and graphical details of respondents

MARKETING MIX

It consists of everything a firm can do to influence demand for its product. Kitex also follows

the idea marketing mix, they are:

1. Place Mix:

Location of plant is one of the early decision of entrepreneur has to make for earning

maximum profit. Location determines the survival as well as the prosperity of business in the

free market economy. The unit is located Kizhakkambalam ,Aluva. The total extent of land is

around 165000 square feet. It is well connected with road. The availability of skilled and

unskilled labor is also a factor in selecting the location


Nearest places:

Railway station : 14 km

Airport : Cochin (2.5)

Town : 24 km

Hospital : Pazhayanadu (7 km)

2. Product Mix

The grey fabrics produced are the finest quality and it mostly used for various export

purpose. They provide grey fabric lungies, bed sheets, mull in various quantity as per

customer specification. The Kitex product is reputed for its quality and free from weaving

defects up to greater extent. The special feature is that raw material is passed through strict

inspection.

3. Price Mix:

The company maintain stable price for a long period of time. Price of product depends on the

price of yarn. It maintains constant price and concentrates on quality of product and so it

requires less investment in advertisement and sale promotion and also a very well formulated

pricing policy provided.

4. Promotion mix:

To promote its products advertisements are used in Kitex. The basic function of an

advertisement is to influence and motivate people to buy product. In Kitex various

advertisements agencies are called up on and brief idea is given about what to advertise and

these agencies prepare a pre demonstration. The marketing manager (marketing) and the

general manager directly analyze and select the best among them and entrust the agencies for

covering their advertisement plans. Kitex chooses the following media:

(http://ism.net.in/clients/kitex_final_niju_anil_raju_shyam/about-kitex.html#about3)


T.V : DD, Asianet, Surya.

Video Ads : C.E.E Videos, SAN Videos

Close Circuit TV : K.S.R.T.C, Railway station

Print media : All dailies, Vanitha, Grihalakshmi etc

Demonstration and sponsor events : Banner, Meal board, wallpaper etc

Advertising agency : TVC Factory Ernakulum

Paper advertisement : Chavara Agencies, X Dous

KITEX CHANNEL OF DISTRIBUTION

Distribution is the act of carrying goods or service from the producer to the consumer.

DISTRIBUTION OF CONSUMER GOODS

Producer consumer

Producer Retailer Consumer

Producer wholesaler Retailer Consumer

DISTRIBUTION OF INDUSTRIAL GOODS

Producer Industrial consumer

Producer Agent Industrial consumer

Customers of Kitex are average and above average people. There is approach as favorable

condition for Kitex in the market and the company channel of distribution.


MARKETING SYSTEM

CRITERIA FOR SELECTING DEALERS

Usually not more than two dealers are appointed in a town. Dealers are selected on their

experience in relating potential of particular town. After selecting dealers a control a contract

is entered into between the dealers and company. The contract lays does items and conditions

of dealership and a deposit of 2000 Rs is accepted from them.

The deposit is repayable on the termination of dealership. Dealership can be terminated on

the interest of both the parties by giving a prior notice. Usually the dealers terminate a

dealership on bad performance or poor business.

SHOW ROOMS

The company has showroom sale in addition to the sales to the authorized dealers and

franchises. There are 10-15 showrooms situated in major town in Kerala .in all the showroom

all products of the group companies are sold at discount of 5% on maximum retail price.

PRODUCTION

DEALERS

SHOWROOM

CUSTOMERS


MAIN COMPETITORS

LUNGIES

Janson Ltd Coimbatore

Angel Lungies

KKB lungies

Bombay Dyeing

TATA Lungies

DHOTHIES

MCR Dhothies.

BED SHEETS

Bombay Dyeing

Janson Ltd

MAIN MARKETS

North America

South America

Western Europe

Eastern Europe

Africa

Southeast Asia

(Kitex Ltd, 2012)

(Kotler Philip and Armstrong Gray, 2008.)


7.2 FINANCE DEPARTMENT

FINANCE DEPARTMENT STRUCTURE

Chairman & Managing

Director

Assistant General Manager

General Manager

Finance Manager

Manager (Accounts)

Assistant Manager Assistant Manager Assistant Manager

Executive

Bank

Cashier Executive

Data Entry

Executive

Data Entry

Executive

(Excise)

Executive

(Fax)

Executive

Audit

Executive

Company


FUNCTIONS OF FINANCE DEPARTMENT

1. Recording of the day today transactions accounting.

2. Preparations of various statements regarding stock, receivable etc. which are to be

submitted to various authorities like bankers, insurance etc.

3. Planning and controlling of the expenses/fund for production.

4. Approving and making payments to different parties‟ creditors/suppliers.

5. Receiving payments from customers/bankers in specific time.

6. Raising short-term loans/credit from bank and other financial institutions.

7. Preparation of sales budget/revenue budgets and expenditure budget on a quarterly

basis.

8. Preparation and maintenance of costing record.

9. Preparation of fund flow and cash flow statement for every month.

10. Timely preparation &filling of financial records.

11. Preparing and filling of quarterly and final income tax returns.

12. Preparation/implementation of cost production and cost control programmers. In

addition to the above mentioned work the following reports are prepared by the

finance department.

Annual report containing past performance, current financial figures, profit/loss A/C,

Balance sheet and also financial statement.

Half yearly quarterly report.

Monthly report to top management on financial on financial performance of the

company including sales achieved, production achieved and profit generated.

Conduct and co-ordination of internal statutory audits.

Perpetual stock verification and asset verification.

Investment analysis/feasibility studies in production supply order received contract

etc.


The finance manager is responsible for maintaining fund at an optimum level. Care is taken

to see that working capital never gets blocked anywhere at any time. The company meets

working capital requirement usually by bank overdraft and other short term loans on the

security of stock of finished goods.

FUTURE PLAN

In the starting the company has investment of 2 crore, now they have 50 crore, and in 2012

they expect that it will be 250 crore. The plan their expansion procedure in 3 parts and each

involves a 25 crore investment. They expect to start their new venture named KITEX

GARMENTS DIVISION in 2010, and also expect to issue shares in the market the same

year.

DUTIES AND REASPONSIBILITIES OF FINANCIAL MANAGER

The role financial manager in KITEX LTD is to prepare the accounting and auditing of all

financial transactions of the organization and have the advisory function in financial and

establishment matters. Mr. Donny Dominic is the Finance Manager.

DUTIES

Maintaining the accounting position of the organization.

Preparation of budget estimates.

Preparation of administration report schedule of the employee.

Preparation of monthly and annual report.

Verification of all proposals related to finance.

Strict adherence of bill of material during purchase.

Assessment and collection of organization revenue.

RESPONSIBILITIES

Finance planning.

Raising of necessary funds

Controlling the use of funds

Disposition of profits.


FUNCTIONAL AREAS OF FINANCIAL DEPARTMENT IN KITEX

LTD

Determine financial needs.

Determine sources of funds.

Financial analysis

Optimal capital structure

Cost volume profit analysis

Profit planning and evaluation.

Capital budgeting

Financial manager is responsible for maintaining fund of an optimum level. Take care

that the working capital never gets blocked any point at any time. The company meet

working capital requirement usually by bank over draft and other short-term loan on the

security of stock of limited goods.


7.3 HUMAN RESOURCE DEPARTMENT

HUMAN RESOURCE DEPARTMENT STRUCTURE

(Kitex Ltd, 2012)

General Manager

Personnel & Administration Manager

Personal Officer Administration

Officer

Security Officer

Administration

Officer

Hostel Warden Canteen

Supervisor

Clerical Staff

Security Staff


In Kitex Ltd the HR department is very effective and efficient. This department includes

planning, organizing, staffing, leading and directing human resources. The company must

find new way to enlarge the knowledge, experience, talents, energy of employees to find the

hidden values in organization and leverage that value to achieve strategic goals.

ROLE OF HR MANAGER

Advisory role.

Operative and service role.

Conciliator role.

FUNCTIONS OF HUMAN RESOURCE DEPARTMENT

Human Resource planning.(HRP)

Industrial relations

Recruitment.

Interview and selection

Probationary period.

Training and development

Employee remuneration.

Performance appraisal.

1. HUMAN RESOURCE PLANNING

Human Resource Planning is a process by which manager determine how organization move

from its current human resource position to its desired human resource position. For this in

KITEX Ltd the concerned department is always updating the list of people.

(Aswathappa, 2005)


2. INDUSTRIAL RELATIONS

Essentially industrial relation is concerned with the relationship between management and

employees. In Kitex Ltd and all other Anna Group of companies the management is very

conscious about to maintain good industrial relation between management and employee and

the role of regulatory mechanism is resolving any industrial disputes.

3. RECRUITMENT

In Kitex Limited the personnel and administration department have a clear cut recruitment

planning. For this they give advertisement in news paper and other media. After collecting all

application, personnel department sort these application and call up suitable candidates for

interview.

This process comprises 5 interrelated stages they are:

Planning

Strategy development

Searching

Screening

Evaluation and control.

Also internal recruitment is taken place in Kitex Limited. This includes present employee‟s

referrals former employee, and former application. For the recruitment of office staff and

managerial personnel external sources like advertisement in news papers, employment

weeklies etc. are used. Other sources of advertisement are company‟s websites, campus

recruitment, employee reference and resumes of the candidates which the company passes.

While selecting weaver trainees and helpers, qualification along with sufficient experience in

the industry is also performed. They can directly appear for interview. Sometimes selection

order is on the basis of recommendation from know persons. For skilled job like fitter,

electrician, carpenter, instrument, technician, jobber .Information is passed through

advertisement.


4. INTERVIEW AND SELECTION

After screening test the candidates are called for an interview. For the post of office staff and

managerial positions a written test is also conducted. For managerial position various tests are

it is also conducted with the help of expert in the field. The interview panel consists of MD,

GM. Departmental Head and Administration Manager. For the post of workman interview

selection is conducted usually on 2nd

Saturdays. The organization conducted walk-ins and

write-ins in all major towns in Kerala inside the organizations.

STAGES IN SELECTION PROCESS IN KITEX

5. PROBATIONARY PERIOD

After the selection process the selected supervisory and managerial position holders have to

undergo a probationary period of 6 months. During this period monthly evaluation is done on

the basis of the following criteria.

Receiving Application

Screening of Application

Employment Test

Interview

Reference Checking

Final Selection

Rejection of

Unsuitable

Candidates


Professional knowledge

Promptness.

Dependability.

Attitudes toward supervisors.

Attitude toward a co-workers

General ability.

Attendance and punctuality.

6. TRAINING AND DEVELOPMENT

In KITEX LIMITED there is two-month training program to all newly appointed employees.

Only after this they will assign their job.

BENEFITS OF TRAINING TO KITEX LTD

Quick learning.

High productivity.

Standardization of procedures.

Less supervision.

Economical operation.

High morale.

7. EMPLOYEE REMUNERATION

In KITEX LTD, The organization provides all the remuneration insisted by the government

of India and the government of Kerala. This including the following:

WAGES AND SALARY

The company follows time rate system and piece rate system. The employees other than the

office staff and plant general workers come under this system: in which payment is made

according to quality is produced on monthly basis. Salary is paid along with a pay slip, which

contains the details of the pay. At the time when the employee receives salary he should sign

on the copy of pay slip and it is field in the department.

The compensation packages consist of

BASIC PAY+DA+HRA+CONVEYANCE+CHILDREN‟S EDUCATION ALLOWANCE.


INCENTIVES

Besides the above package the employee well get other incentives like production incentive,

Sunday-Monday incentive etc.

EMPLOYEE WELFARE MEASURE

In India labor welfare measures can be divided into statutory welfare and non statutory welfare

measures.

A. STATUTORY WEALFARE MEASURES

The major social security and welfare scheme in India is the Employees State Insurance (ESI)

and the Employees Provident Fund (EPF)

I. AN ABSTRACT OF THE ESI ACT, 1948

ESI scheme was introduced in KITEX LIMITED. The ESI is a contributory scheme, with the

employer paying 4.75% of wages and the employee contributing 1.75% of his wages to the

fund. The ESI Act is applicable only to all factories situated in notified area and employing

more than 20 persons, unless otherwise notified by government. This scheme covers all

employees including causal and contract drawing wages below RS 6500/pm.

II. AN ABSTRACT OF THE EPF ACT, 1952

EPF Scheme is there in KITEX LIMITED. The Employees Provident Fund Miscellaneous

Provision Act 1952 is aimed at providing social security to the covered employees. Normally,

established employing 20 or more employees are covered under the act. There is no salary

limit. It is also contributory scheme with the employer and employee contributing 12% of

their wages to this fund.

ANNUAL BONUS

The company pays annual bonus to its employees based on the company‟s performance in the

previous year, 8.33% of the profit is given as bonus every year.


GRATUITY

KITEX LTD maintains a Gratuity scheme for its employees who have completed 5 years of

experience including training period.

B. VOLANTARY WEALFARE SCHEME

Attendance bonus.

Uniform allowance.

Children‟s education allowance.

Free tea and coffee for office staff.

Funeral expenses on the death of family members of employees.

Saving scheme for employees.

Stands as guarantee for the employees to buy vehicles and household on hire

purchase.

Leave –earned leave for 15 days is guarantee to the employees. Maternity leave of 12

weeks also granted to the female employees.

Free accommodation is granted to the female employees.

Night shifts allowance and over time allowance.

Health and Safety measures –there are various types of safety measures such as

earplug, mask, safety belt etc.

HOSTEL

In KITEX LTD, organization provides separate hostel facilities for the ladies and gents. It

includes canteen, accommodation, entertainment facilities. For the purpose of administration

of ladies hostel, organization has appointed a hostel warden and 2 assistant warden and hostel

staff. The personnel and administration department conducts an annual day celebration for

the employees.

SECURITY DEPARTMENT

For the security and discipline of the KITEX Ltd the organization provides a security

department under personnel and administration department. This includes a security officer

and security staff. The main function of the security officer is to check the baggage and


carries coming to the organization and the products delivery items from the packing section.

The security officer marks the quality of the product, place, time etc.

TRADE UNION

There are companies, which are non-unionized. KITEX LTD is such a company .In Kerala

we can see a lot of labor unions and problems they create in industries. In this sense this is a

great privilege for the company as union free company, this is maintained in KITEX through

good employee relation.

8. PERFORMANCE APPRAISAL

Performance appraisal is a systematic evaluation of the industrial with respect to his

performance on the job and his capacity to development.

OBJECTIVES OF PERFORMANCE APPRAISAL

To assess the work of employees in relation to the job requirement.

To assess the strength and weakness of employees and to place the right man in the

right place.

To assess the performance of employees and give suggestion for improvement.

To assess the potential and capability of employees and recommend for promotion.

To know the problem of workers when they do the work.

To suggest suitable training and development program.

To divide workers into efficient and in efficient categories.


7.4 PRODUCTION DEPARTMENT

PRODUCTION DEPARTMENT STRUCTURE

Chairman and Managing

Director

General Manager

Manager Manager

Shift in

Charge

Maintenance

in Charge

Preparatory

In Charge Shift in

Charge

Shift in

Charge

Supervisor

Jobber

Supervisor Supervisor

Helper

Jobber

Helper Helper

Jobber

Shift

Clerk Shift

Clerk

Shift

Clerk

Seizer

Worker

Winder

Worker

Beam driver

Worker

Worker

Boiler

Humidifier

Operator

Plant

Cleaner

MAINTENANCE

SUPERVISOR

Electrician


Production means conversion of raw material into finished goods with the help of certain

process. Production management involves planning, organizing, directing, and controlling the

activities to the production function. Mr. P. Rajeev is the Production Manager.

FUNCTION OF PRODUCTION DEPARTMENT

Design of the product.

Design of the production system.

Production planning and control

Selection of location.

Layout of plant

Selection of plant and equipment

Research and development

The products manufactured by the company are industrial goods and consumer durable

goods.85% of the goods (gray cloth) is sold to other company or production units. In the

textile industry where the same are converted into useful or consumer durable textiles or

garments.15% of the gray cloth manufactured by the company is converted in to lungies,

dhothies, mull, and bed sheets. Various production units at Coimbatore do the conversion

process. The conversion process includes Bleaching, Dyeing, Resizing, Printing etc. After the

work is done different varieties of goods are received back, then quantity checked,

packed and marketed by the company.

PRODUCTION CAPACITY UTILIZATION AND MODERNIZATION

The production department or factory has installed capacity of 480 power looms.100%

capacity for production is utilized for production. In addition to the power looms, the

company has installed 20 modern looms, it is known as sulzer looms. It is imported from

Switzerland. Power looms are shuttle looms as sulzer looms are shuttle less looms.


ADVANTAGES OF MODERN /SULZER LOOMS

High speed

More production capacity than power looms

It is fully automatic and high quality of goods produced

Manpower requirement is very less

Width of the cloth produced by modern looms are more than power looms

Ordinary power looms require two people per loom while modern looms require only

one person that is 50% Labor expenses can be saved.

DISADVANTAGES OF MODERN POWER LOOMS

It requires qualified and highly experienced personnel.

Since it operates automatically, it requires high quality yarn.

Since it uses high quality yarn it produces high quality clothes

There for these cloth will be of high prices, which cannot be affronted by common

people.

SHIFTS

The production department works in 3 shifts:

1. 8:00 AM TO 4:30 PM

2. 4:30 PM TO 1:30 AM

3. 1:30 AM TO 8:00 AM


RAW MATERIALS USED

100% yarn of different specification for different variety of gray cloth used in

production from major raw materials.

Other raw materials are sizing chemicals, tapioca starch ,adhesives etc

Other indirect materials are different consumable stores, spares cleaning chemical

The company has never faced raw material shortage .this is due to efficient supply chain

management, scientific estimation of raw material requirement and timely procurement of

raw materials. The purchase department plays an active role in the effective and timely

procurement of raw materials.

PACKING SECTION

This section is come under production department .there are 35 workers in this section.

Checking is always done through the packing process. In packing section packers pack the

cloth and dispatch for delivery. After security checking the delivery process will complete.


PRODUCTION FLOW CHART

Cotton Yarn

Warping

Sizing

Beam

Drawing

Pirn Winding

Weaving

Grey Cloth

Folding Rechecking

Cutting Dispatch 1

st Piece Inspection Checking

Bailing

/Packing

Recounting

Grading /

Sorting Unwinding


PRODUCTION PROCESS

It is divided into two. First one is the waving preparatory and the other one is the weaving

process. Weaving preparatory is the main process which includes various sub-processes like

warping, sizing, beam drawing, pirn winding, cone winding etc...

WARPING

It is the process of winding 100% cotton yarn of the requirement specification on beams

without packing a single thread. The cotton yarn so wound on the beam is called warp. The

number of threads will determine width of the cloth. The more number of threads, the more is

the widths of the cloth. The length of the warp determines the length of the cloth.

SIZING

It is the process of strengthening the yarn wound on the beam (warp).in this process the warp

is passed through sizing the chemical, which are mainly tapioca starch and other adhesives.

The process makes the yarn more rigid and this prevents it from breaking while weaving.

After sizing the yarn gets shake to each other and it is dried.

BEAM DRAWING

It is the process of passing each separate yarn through a set of needles. Trained and

experienced beam drawer does this work manually .the yarn, which is passed through this

needle like beam, forms the lengthwise portion of the cloths.

PIRIN WINDING

It is the process of winding yarn on the pirns .This yarn need not require sizing. This yarn

wound on pirns is used for wefting .these are two types of winding machines in KITEX Ltd.

Automatic pirn winding machines

Circular winding machines.


WEFTING

Wefting is the process of weaving the warp with the yarn wound on pirns. The pirns is

inserted in the loom regularly. This result of this process is 100% gray cloth.

CUTTING, UNWINDING AND CHECKING

The woven fabric cut from the loom is again unwinded and checked the quality by the

supervision of trained checkers and recheckers before folding and bailing. The checking is as

per American 4 point system.

FOLDING

After classifying the fabric is folded by machine and counted the meter age and marked.

RECOUNTING

This meter age is again recounted and assured the fabric and sealed.

GRADING/SORTING

In the grading department the following process are carried out grading/sorting of gray

fabric checking all the technical conditions stipulated aped mark with a pen on the ends of the

fabric piece indicating the fabric style, measure and grade. For fabric of each style are strictly

satisfied at the same time piece length is measured and the production of fabric per shift is

registered by cleaning the fabric from fluff, thread ends ,knots and tags putting a special mark

with pen on the end of the fabric piece indicating the fabric style, measures and grades

BAILING/PACKING

The graded or sorted fabric is packed in bailed condition under the supervision on the basic

quality. The standard packing in one all contains 100 meters. For bailing the company has a

bailing press, which is in good working condition.


TOTAL QUALITY MANAGEMENT (TQM)

Total Quality Management (TQM) journey started at ANNA Group on 6th

June 2005.it is a

long journey towards success. Quality means 100% quality in attitude, speech, people, work,

discipline, surrounding, products etc. The Company introduced 5 S Techniques for good

housekeeping, as a part of the TQM. 5 „S‟ techniques are a Japanese method. It helps the

company to:

Improve productivity

Save time

Solve space constraints

Improve morale of the employees

5 ‘S’ TECHNIQUES

5 „S‟ Techniques for good housekeeping are as follows:

1. SEIRI (SORTING)

Segregate required, usable, re-workable and absolute items.

Dispose of the unwanted items

Clear off walkways‟

(One picture is worth more than a thousand works)

2. SEITON (SYSTEMATIZING)

Use labels, color codes for easy identification

Use index for files, record, drawing etc. To facilitate irretrievability

Plan storage with accessibility

(A place for everything and everything in its place)


3. SEISO (SHINING)

Inspect and clean the supply lines, go downs, scrap yards and gardens.

Clean up workplace, machines and tools after use.

Identify root causes of loud noise, vibration, heat buildup in equipment and take

remedial action.

(Spic and span leads to zero break down)

4. SEIKETSU (STANDARDIZING)

Develop standard.

Establish checking procedure

Create visual controls

Devise ways and means to expose problem

(Action speaks louder than word)

5. SHITSUKE (SELF DISCIPLINE)

Develop action plan for maintaining the set standard

Give unambiguous advice/instruction to your work associates.

Carry on 5‟S activities as a matter of habit and enthuse to practice 5‟S

Conduct self audit.

(Be a self starter)


7.5 PURCHASE DEPARTMENT

PURCHASE DEPARTMENT STRUCTURE

Purchase department plays very important role in the company and in every vital factor

concerning the manufacturing quality, cost, efficiency, and prompt delivery of goods,

customer service, machines and tools maintaining the desired standard of quality. Purchasing

is the most important function of material management as the moment an order is placed for

the purchase of materials: a substantial part of the companies finance is committed which

affect the cash flow position of the company.

Chairman and

Managing Director

General Manager

Purchase Manager

Purchase Officer Purchase Officer

Office Assistant Office Assistant


A manager assisted by two purchase officers and an office assistant heads this department.

The manager gives the details about the purchase to general manager and managing director.

Mr. Venu Gopal is the purchase manager.

OBJECTIVES OF PURCHASE DEPARTMENT

To make continuous availability of materials so that there may be uninterrupted

production.

Make purchase at the most economic price.

Make purchase in reasonable qualities so that minimum investment can keep in the

materials.

Make good report with suppliers which will ensure the best form of supply materials.

Make purchase of good qualities materials to have minimum wastage and loss in production.

FUNCTION OF PURCHASE DEPARTMENT

Before purchasing materials purchase department should know the total requirements of

various materials of different department.

Locate the source of suppliers.

Select the vendor affecting checking term and conditions.

Prepare comparative statement after analysis of quotations.

Orders are to be placed with suppliers after verifying quality and quantity.

Minimum stock and inventory balance should be maintained.

Excess stock should be avoided.

Material should be kept in standard containers and packages.

Up to date record of purchase should be maintained.


TYPES OF MATERIALS PURCHASED

100% Cotton yarn of different specification.

Sizing materials-tapioca starch and adhesives.

100m spares.

Electrical equipment and accessories.

Packing materials.

THE CHART OF PURCHASE PROCEDURE

Production Planning (1)

Purchase Requisition (2)

Purchase Department (3) Purchase

Order (4)

Inspection

Report (11)

Supplies (5)

Material (6) Receiving Section (7)

Account Department

(12)

Payment (13)

Inspection (8)

Material (9)

Store (10) Invoice


PURCHASE PROCEDURE

When the store department is in need of goods, the departmental head will send a “purchase

requisition” to purchase department showing quantity, quality and the time by which the good

are required .after ascertaining the requirements, the purchase department should invite

tenders from approved vendors. After accepting the best tender, the purchase department

place order. The details of goods date of delivery and mode of transport etc. It should be

recorded in the purchase order book.

The purchase order should be prepared in quadruplicate. One copy should send to the

supplier. The second copy is to be sending to the department requisitioning the goods and the

third copy to the account department and the purchase department should retain the last copy.

On receipt of goods, the gatekeeper, after examining them properly, should enter the

particulars of goods received in the “goods inward book”. Then he should send the goods to

the store department, where they are kept. After receiving the goods, the stores department

should prepare a “Goods Received Note” and send a copy to the purchase department. After

receiving the GRN, the purchase department should compare it with the purchase order to

ensure that they are o the same quantity and quality ordered.

Then another clerk should check the details of the invoice and calculations made there in.

After proper verification, the invoice should be handed over to the accounts department for

payment. The accounts department should compare the invoice with the purchase order and

verify the calculations. If the goods received are according to the order and calculations

found correct, the account department should record the same in the purchase book. Then the

invoice should be passed for payment. In the case of goods returned to the suppliers, a proper

record should be maintained in the Purchase Return Book, a credit note should be obtained

for the amount and for other allowance claimed from the purchase department.


7.6 QUALITY CONTROL DEPEARTMENT

QUALITY CONTROL DEPEARTMENT STRUCTURE

Manager

Quality Inspector (Grey

Fabric)

Quality Inspector

(Finished Fabric) Quality Inspector

(Raw Materials)

Asst. Inspector

(Yarn)

Checkers Asst. Inspector

(Spare Parts)

1st Piece Inspector

(Yarn)

Re checkers

Checkers


QUALITY CONTROL DEPARTMENT

The company has ISO certification. The company has given different equipment and

mechanism to ensure quality at different stage of production. It aims at maximum quality at

minimum cost.

YARN

Before purchasing the yarn the quality parameters are overhead and getting assurance from

the yarn suppliers such as count, imperfect item level, 60% of the count,60%of the strength of

the yarn for checking or measurement the above parameters various equipment are available

in the laboratory. The company purchasing a quality yarn that is auto core, auto spice,

electrically fire cleared comber yarn for making 100% obeying standard quality fabric for

export garments.

GREY FABRIC

The buyers have their own standards for the quality and company always satisfied the

requirement of the buyer. Even though the company followed a standard quality policy, 4

point systems from the top file distributors association, INC U.S.A and American textile

manufacture institute, INC New York the penalty or point are calculated according to the

length of the defects as follows:-

Length of the defect in the fabric in

either length or width

Demerit

Up to 3 inch 1

Over 3 inch up to 6 inch 2

Over 6 inch up to 9 inch 3

Over 9 inch 4


Now one yarn is to be penalized more than 4 points. All holes are 2 or more broken ends will

be penalized with 4 point. Any running defect more than 4 continuous yards will cause a roll

to be rejected. Usually fabrics are graded first, if the demerit points do not exceed the limits.

But the acceptance tolerance has to be confirmed by the buyer. In woven fabric, demerit

points of maximum of 40 point per 100 square yard are given.

ORGANISATIONAL CONTRIBUTION TO SOCIETY

MANAGEMENT REASPONSIBILITY

"To design the quality policies and objectives, responsibility,

authority and organizational interface of management personnel, methodology for

preparation of business”

Planning analysis at the company level data and also includes measurement of customer

satisfaction idea. To define environmental policy and rules, authorities of personnel with

respect to environmental management system and mode of communication.


7.7 STORE DEPARTMENT

STORE DEPARTMENT STRUCTURE

STORE DEPARTMENT

The manager heads store department. He is assisted by four persons, two in general shift and

one each in other two shifts. The store manager is reporting general manager.

The store department KITEX stores all the materials and controls the movement of the

materials to different department. It store materials like sizing chemicals, yarn of different

specification, adhesives, spare parts, electrical goods, lubricant tools, office stationary,

packing materials etc. the items are coded for easy handling. Due to lack of sufficient space

in store and to facilitate easy handling, packing materials and yarn are stored in

GENERAL MANAGER

STORE MANAGER

OFFICE

ASSITANT

OFFICE ASSITANT

OFFICE

ASSITANT

OFFICE

ASSITANT


corresponding departments but the issues of raw materials are controlled by the store

department. Store manager with the help of purchase manager and production manager plans

material storage.

STORE DEPARTMENT STRUCTURE

Storage of all items of raw materials including sizing materials, yarn of different

specification, spare parts, electrical items, lubricants tools, office stationary, packing

materials etc. is the responsibility of store department. Functioning of store department is

controlled by production manager. Material storage is planned by the store manager with the

help of purchase and production department. Yarn and packing materials are stored in the

production department go down due to lack of sufficient in the store and to facilitate easy

handling of both the item.

STORE MANAGER

STORE ASSISTANT

STAFF

STORE OFFICER


FUNCTIONS OF STORE DEPARTMENT

Issues of raw materials which are ordered by the various functional units. The raw

materials are issued when material requisition note is received from supervisors of

concerned section in production department.

Recording quality, quantity and other specification of items issued by stores

department in store in ledger account for inventory control.

Availability of materials of checked through computer and verified it.

The physical stock is taken and is checked by store department and also by internal

auditors. Stock verification is done independent of store keeper and store manager.

The materials stocked should be preserved will so as to protect them from

deterioration. It is done with the help of eco-friendly chemical and is insured against

fire.

RECORDING OF STOCK

Perpetual stock record is kept for raw materials, spares, work in progress and finished goods.

Are these records are periodically reconciled with accounting records. This is a periodically

reporting of storage or excess. If differences are there, they are investigated and necessary

adjustments are made in the final accounting records and store ledger accounts maintained in

the stores.

The store department is fully computerized. A special software package is designed and

installed for inventory management in the stores. All the receipts and issues are recorded in

the computer ABC analysis of inventory is done on regular basis of physical stock check

once in every month by the store department and internal auditors.

STEP IN RECEIVING MATERIALS

Visual inspection

Preparation of receiving report

Preparation of inspection report

Dispatch of above report to financial department for passing bills and arranging

payment.

Preparation of rejection note of materials


MATERIAL CONTROL SYSTEM

The company has material control system which ensures that right quality of material is

available in to right quality of right time and right place with right amount of investment.

Two level of material control exist in the computing quality control and financial control.

Production manager are primarily interested in quantity control because it is their

responsibility to see that there is no stock out problem.

FEATURES OF MATERIAL CONTROL SYSTEM

Continuous availability of all types of materials in the factory

No excessive investment in stock materials.

While purchasing materials, it is seen that it is purchased at reasonable low price.

There is minimum wastage of material while these are being stored in the go down by

the store department

Information about availability of materials is continuously made available by the store

manager.

There is proper co-operation and co-ordination and co-ordination among department.

As a part of material control system there exists an internal check on material so as to

avoid misappropriate of store items.

TECHNIQUES OF MATERIAL CONTROL

Level setting, EOQ.

ABC analysis and VED analysis.

Perpetual inventory system.

Material turnover ratio.

Material cost report.


INVENTORY CONTROL ANALYSIS

In KITEX the major technique used in controlling the inventories is ABC analysis .also VED

and Economic Order Quantity techniques, Turnover Ratio is calculated. It is done regularly.

All stock is kept in assigned area and the accesses to these areas are strictly restricted. The

inventory control systems are designed in such a way that the production is not interrupted in

any way. Proper planning, purchasing, handling and accounting of materials have helped

company to control the cost of production. Thus it aims at qualitative, quantitative and

financial control.

ORGANIZATION CHART OF STORE DEPARTMENT

Production Control Stock

Stock Delivery

Report Stock A/C Section

Store Issuing

Section

Material

Store Issuing

Section

Receiving

Report

Material

Store


8. SWOT ANALYSIS

The basic objectives of SWOT ANALYIS is to provide framework to reflect on the ability to

overcome barriers and to avail the opportunities emerging into changing environment ,the

diagnosis of strength and weakness can be fruitfully done if the environment factors and

market conditions are considered always with the internal capabilities. SWOT analysis is an

important tool to find strength, weakness, opportunities and threats.

8.1 STRENGTHS

It is a well established firm and has wide acceptance in the domestic market

.The company manufacture various products like bags, garments etc which are of high

product quality.

The company has highly trained and motivated workforce.

Kitex is one of the largest manufacturers of textile product in Kerala.

Kitex Ltd is an ISO 9001-2000 certified company.

The company maintains better commitment to the society through their service.

The company maintains a large number of loyal customers.

The company is managed by a team of professionals.

8.2 WEAKNESS

The company faces high cost of production due to increases prices of raw materials,

labor etc.

The company lacks sufficient modern weaving machines.

It also lacks modern quality checking machines.

There is no 100% utilization of the installed capacity.


8.3 OPPORTUNITIES

Growing market demand is a good opportunity for the company to enhance its

production.

It has increased opportunity for exporting its products.

Development of new market is also helps the company.

Financial position is good. So they can go for improved means of production.

Now a day‟s customers focus on more on quality products.

Increasing population also provides a better opportunity for the company in textile

market.

India with large cotton cultivation has a great space in textile market.

Strong dealer network.

Customers demand toward quality products.

8.4 THREATS

Growing competition

Availability of duplicate products in the market is a major threat.

The company also faces increased competition in the global market.

Technological advancement is required for the future development of the company

Changing rules of government relating with textile industry.

India faces great threat from china in textile market.

Seasonal fluctuations also affect the sales of the company.


9. PORTERS FIVE FORCES MODEL THEORY

9.1 THREAT FROM NEW ENTRANTS

Kitex Ltd produces quality products and has competitive advantage over competitors.

Huge investment in infrastructure is required.

Cost of the raw materials is increased from last few years. Now the company is trying

to import low cost high quality raw materials from Bangladesh and China.

Starting this kind of business is little difficult because there is number of government

guidelines like pollutions, waste, water crisis, place etc.

9.2 AVAILABILITY OF SUBSTITUTES

The relative price and performance of substitute.

Switching cost of customer is low

Kitex having a good brand image in the market.


9.3 BARGAINING POWER OF BUYER

Kitex Ltd gained a good range of satisfied customers through the timely delivery of

quality products.

Lots of brand choice available for similar qualities with different price.

Kitex Ltd having large volume of customers especially in Kerala.

As the company getting bulk orders for the product they are providing at reasonable

rate

They are specialized in quality service best to the world class level bargaining power

of buyer are less.

9.4 BARGAINING POWER OF SUPPLIERS

Kitex have the best suppliers from all part of the country.

Always they try to find and add new suppliers to their list based on quality and price.

9.5 COMPETITIVE RIVALARY

Kitex Ltd mainly concentrates on Kerala market.

Customers satisfied with the product they are producing.

No customers are doubtful to prefer Kitex products because of the quality and price.

A good growth in the industry so that the company trying to find new market along

with the existing clients.

Consistent and diversified growth


10 MCKINSEY’S 7S FRAME WORK

10.1 STRATEGY

The company has recorded steady growth in its productivity as well as quality and its

profitability.

Quality leading to customer satisfaction shall be their top priority

An ambulance service is provided to all BPL families of Kizhakkambalam

panchayath.

The firm provides the quality product to the customers and people of nearby arrears

at reasonable price.

10.2 STRUCTURE

Kitex Ltd follows line organization structure. Managing Director is the top level.

Functional manager followed by them.

In Kitex there are 7 department namely, purchase department, production department,

finance, human resource, marketing, store, quality department.

Chairman and managing director and representative of shareholders are takes the

important decision of the group.

Both implicit and explicit communication is followed by the organization.


10.3 SKILLS

Human Skill –It involves ability to interact effectively with people.

Technical Skill – It involves technical knowledge and proficiency in certain

specialized field such as computers, manufacturing, engineering accounting.

Factory level employees are well trained to produce quality products.

Team coordination –Management where effectively coordinate all the activity in the

department.

10.4 SYSTEMS

Quality assurance policy

Flexibly working and work-life balance

Freedom of information

Gender equality scheme

10.5 SHARED VALUES

Quality

Equal opportunity

Integrity

Unity

10.6 STYLE

Leadership approach is very friendly.

In Kitex there is no trade union because of their employer and employee relations.

10.7 STAFFS

Competency level of employee is very high.

The staffs who are working in Kitex Ltd are highly educated with SAP software and

Usage.

Professional knowledge

600 people are working in Kitex Ltd.


11. FINDINGS

The performance of the product is above expectations dealers and purchasers are

greatly satisfied with the product of Kitex Ltd.

Preferred price range of the products of Kitex is comfortable for an ordinary man.

Company provides step by step method to check the quality.

Purchaser prefer self decision in purchasing the products

MCR is the nearest competitor of Kitex products in the market.

It has been seen that the product has been great demand, is the availability of this

product at lower price with high quality.

No strike or trade union existing in the organization because of the good relation

between employees and management.

Young and skilled labors are working in the company; as a result the work is moving

speedy and is good quality.

Brand image and quality are the only factor which contributed to the popularity of

Kitex products.

Customer service provided by Kitex Ltd is very much better.

There is strict supervision as a result of no wastage of materials.


12. SUGGESTIONS

Most of the customers are price sensitive, so if the company reduces the price of its

products, it will increase the demand in the rural area.

Company shall provide offers to the customers which will motivate them to buy the

products.

Complaints from the customers should be considered and step should be taken to

improve the satisfaction of customers.

Feedback should be taken from the customers so that the quality and price of the

products can be changed according to the customer‟s opinion. This will increase the

sales of their products.

Conduct market research every year.

Various sales promotion techniques are essential to increase the sales.

The company must take adequate step to improve its distribution system in order to

reach the products to maximum number of dealers and also to the village areas.

For more complex activity, more training should be given in order to reduce the

damage and other technical defects.

The organization should explain the training objectives to the employees in detail.


13. CONCLUSION

The project study entitled “Organizational study of Kitex Limited, Kizhakkambalam” has

given me deep knowledge about the organization and the textile industry.

The industrial establishments of India, particularly in Kerala are passing through a tough

time. Inefficiency of management to solve the problems they face in their areas, labor

problems, government interventions, makes the growth of industries a bit harder. Yet from

this study it can be seen that Kitex Limited having a professional approach in all its functions

and transactions. The through the year have made a remarkable growth and it proved that it

strive well at all the conditions.

The organization study in the company was highly experiencing and the gentles and

cooperation shown by each and every employee of the company have contributed much to the

success of the organization study.


14. BIBLIOGRAPHY

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Resource and Personnel Management. New Delhi: Tata McGraw-Hill publishing company

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Marketing. New Delhi: Dorling Kindersley(India) Pvt. Ltd .

www.annagroup.net. (2012, september 3). Retrieved from www.annagroup.net:

http://annagroup.net/products.php)

www.cci.in. (2012, august 23). Retrieved 2012, from www.cci.in/pdf/surveys_reports/indian-

textile-industr: www.cci.in/pdf/surveys_reports/indian-textile-industry.pdf

www.cci.in. (2012, augest 12). Retrieved 2012, from wikipedia:

www.cci.in/pdf/surveys_reports/indian-textile-industr


15. APPENDIX

15.1 ABBREVIATIONS

WTO World Trade Organization

ATC Agreement on Textile and Clothing

MFA Ministry Of Foreign Affairs

KITEX LTD Kizhakkambalam Textile Limited

TQM Total Quality Management

K.S.R.T.C Kerala State Road Transport Corporation

GRN Good Received Note

ESI ACT Employees State Insurance Act

EPF ACT Employees Provident Fund Act

GDP Gross Domestic Product

ICICI Industrial Credit and Investment Corporation of India

TQM Total Quality Management

3 My Os Report 2012 Anu

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