CHAPTER -1

INTRODUCTION

Textile industry in India is one of the largest textile industry in the

world. Today Indian economy is largely depended on its textile manufacturing and

exports. India earns about 27% of the foreign exchange from export of the textiles.

Further Indian textile industry contributes about 14% of the total industrial

production of India. Further more its contribution to the Gross Domestic Product of

India is around 3% and the numbers are steadily increasing. The main strength of

our textile industry was the availability of large pool of skilled and cheap work

force and flexible textile manufacturing system.

Today the world uses more cotton than any other fiber ,and cotton is

the leading cash crop in U.S. At the farm level alone the production of each year

crop involves the purchase of more than 5.3 billion worth of supplies and services.

This stimulates business activities for factories and enterprises through out the

country. Processing and handling of cotton after it leaves the farm generates even

more business activity.

Kottayam textiles is a spinning mill which functions under Kerala

State Textile Corporation Ltd. The product of this mill is yarn in cone form. Raw

material used for production is cotton. This yarn is the raw material in the

production of fabrics. Kottayam textile is a major mill in Kerala in textile industry.

In Kottayam Textiles Ltd. We studied the organizational performance

and activities of the mill and collected an idea about the functioning of an

organization. This project report contains an overall study of Kottayam Textiles

Ltd. at Vedagiri.

[1]

Objectives

The main objectives behind this project report are:-

To familiarize with the organization.

To understand an idea about the functioning of the organization.

To know about the activities of employees of the organization.

To get more information about various departments of the organization.

To make an overview of activities of Kottayam Textiles.

Scope of the study

The project entitled ‘An overall study on Kottayam Textiles’, is conducted

to get the detailed information about the day to day activities of the mill. To

understand, the chief departments in Kottayam Textiles are Personal department,

stores department, Production department and Accounts department. This

organizational study is mainly concentrated in these departments, its functions and

its personnel’s.

Methodology

Source of data – The relevant data for the study here is collected from the

following sources:-

Primary data:-

Collected from the respective department heads and workers in the organization.

Secondary data:-

[2]

Obtained from memorandum of association of the company, company records,

books and websites related to the textile industry.

Tools and techniques

In this project report study schedule method interviews and observation

were the method used to collect dat.

Period of study

A significant period is necessary for analytical study for its clarity

standardization of data. A period of 12 to 15 days is used to make a study of the

firm.

Data analysis

SWOT analysis is used to analyze the data of the organization study.

Significance of study

This study is conducted to find out the various departmental functions, day

to day activities, to get aware of various welfare activities and to get the all the

prevailing factors in Kottayam textiles.

Limitations of study

[3]

The reliability of the data used in this study mainly depend upon the

company’s recorded information provided by the employees of the organization.

Information about the procedure in the production department is not familiar to

ordinary people. An in-depth study of all the employees of the organization cannot

be carried out due to shortage of time.

Chapter scheme

The entire study is divided into different chapters. This project report

mainly divided into six chapters. Each chapter contains a title and subtitles. The

main chapters are introduction, industrial profile, company profile, organization

profile, department profile and the SWOT analysis.

[4]

CHAPTER 2

INDUSTRIAL PROFILE

HISTORY OF COTTON

No one knows how old cotton is in exact. Scientists searching open cotton

boll caves in Mexico found bags of cotton bolls and pieces of cotton cloth that

proved to be at least 7000 years old. They also found that the cotton itself was

much like that grown in America today.

In the Indus river valley in Pakistan, cotton was being grown, spun and

woven into cloth 3000 years BC. At about the same time natives of Egypt’s Nile

valley were making and wearing cotton clothing.

Arab merchants brought cotton cloth to Europe about 800 AD. When

Columbus discovered America in 1492, he found cotton growing in the Bahamas

islands. By 1500, cotton was known generally throughout the world.

Cotton was first spun by machinery in England in 1730. The industrial

revolution in England and the invention of the cotton gin in the US paved the way

for the important place cotton holds in the world today.

Eli Whitney Gin Eli Whitney, a native of Massachusetts, secured a patent

on the cotton gin in 1793, though patent office records indicate that the first cotton

[5]

gin may have being built by a machinist named Noah Holmes 2 years before

Whitney’s patent was filed. The gin, short for engine, could do the work 10 times

faster than by hands.

The gin made it possible to supply large quantities of cotton fiber to the

fast growing textile industry. Within 10 years the value of the US cotton crop rose

from $150000 to more than $800000.

India’s export of cotton textiles are showing tremendous growth in all

categories of yarn, fabrics, and made-ups, reaching more than 3 billion dollar and

covering over 185 countries around the world.

Cotton textile export has become the main stay of Indian economy and the

Cotton Textile Export Promotion Council (TEXPROCIL) has been playing an

important role in continuing this growth.

India has become one of the world’s largest exporters of yarn for every

kind of application from hosiery to weaving. Fabrics accounts for a third of the

countries cotton export.

HOW COTTON IS GINNED AND MARKETED

Today nearly all cotton is stored in modules, which look like giant loaves

of bread. Modules allow the cotton to be stored without loosing yield or quality

prior to ginning. Specially designed trucks, pick-up modules of seed cotton from

the field and move them to gin. Modern gins place module, in front of machines

called module feeders. Some module feeder, have stationary heads, in which case,

giant conveyers move the module into the module feeder. Other module feeder, are

self propelled and move down a track that along side the modules. The module

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feeder, literally break the module, apart& feed the seed cotton into the gin, other

gin, sue powerful pipe, to suck the cotton into the gin building. Once in the cotton

gin, the seed cotton moves through drivers through cleaning machine that remove

the gin waste such as burs, dirt, stems and leaves material from the cotton. Then it

goes to the gin stand where circular saws with small, sharp teeth pluck the fiber

from the seed.

From the gin, fiber and seed goes different ways. The ginned fiber, now

called lint, is pressed together and made into dense bailes weighing about 500

pounds. To determine the value of the cotton, samples are taken from each baile

and classed according to fiber length (staple), strength, micronaire, color and

cleanses. Producer, usually sell their cotton to a local buyer or merchant also, in

turn, sells it to a textile mill either in US or a foreign country.

The seed usually is sold by the producer to the gin. The ginner either sells

for feed or it to an oil mill where the linters (downy fuss) are removed in an

operation very much likes ginning. Linter are bailed and sold to the paper batting

and plastic industries, while the seed is processed into cotton seed oil, meal and

hulls.

YARN

Yarn is a long continuous length of interlocked fibers suitable for use in the

production of textiles, sewing, crocheting, knitting, weaving, embroidery and rope

making. Thread is a type of yarn intended for sewing by hand or machine. Modern

manufactured sewing threads may be finished with wax or other lubricants to with

stand the stresses involved in sewing. Embroidery threads are yarns specifically

designed for hand or machine embroidery.

[7]

Spun yarn is made by twisting or otherwise bonding stable fiber, together to

make a cohesive thread. Twisting fibers into yarn in the process called spinning

can be dated back to the upper Paleolithic, and yarn spinning was one of the very

first processes to be industrialized. Spun yarns may contain a single type of fiber or

be a blend of various types. Combining synthetic fiber with natural fiber is very

common. Most widely used blends are cotton polyester and wood acrylic fiber

blends. Blends of different natural fibers are common too, especially with more

expensive fibers such as angora and cashmere.

Yarns are made up of number of plies, each ply being a single spun yarn.

These single plies of yarn are twisted together in the opposite direction to make a

thicker yarn. Depending on the direction of this final twist, the yarn will be known

as S-twist or Z- twist. For a single ply, the direction of the final twist is the same as

its original twist.

Filament yarn consists of filament fibers (very long continuous fibers)

either twisted together or grouped together. Thicker mono filaments are typically

used for industrial purposes rather than fabric production or decoration. Silk is a

natural filament and synthetic filament yarns are used to produce silk-like effects.

Texturised yarns are made by a piece of air texturing, which combines

multiple filament yarns into a yarn with some of the characteristics of spun yarn.

[8]

TEXTILE INDUSTRIES IN INDIA

Indian textile industry is one of the leading textile industries in the world

though was predominantly an organized industry even a few years back. But the

scenario started changing after the economic linearization of Indian economy in

1991. The opening up of economy gives the much needed thrust to the Indian

textile industry.

Indian textile industry can be divided into several segments, some of which

can be listed as below.

Cotton textile

Silk textile

Woolen textile

Ready made garments

Hand crafted textiles

Jute & coir

STRENGTH

Vast textile production capacity.

Large pool of skilled and cheap work force.

Entrepreneurial skill

Efficient multi fiber raw material manufacturing capacity.

Large domestic market.

Enormous export potential.

Very low import context.

Flexible textile manufacturing system.

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WEAKNESS

Increased global competition in the post 2005 trade reign under WTO.

Imports of cheap textiles from Asian neighbours.

Use of outdated manufacturing technology.

Poor supply chain management.

Huge un-organized and decentralized sector.

High production cost with respect to other Asian competent.

CURRENT FACTS ON INDIAN TEXTILE INDUSTRY

India retained its position of worlds second highest cotton producer.

Acreage under cotton reduced about 1% during 2008-2009.

The productivity of cotton which was growing up over the year has reduced

in 2008-2009.

Substantial increase of Minimum Support Prices (MSPs).

Cotton export couldn’t pick up owing to disparity in domestic and

international cotton prices.

Imports of cotton were limited to shortage in supply of extra long staple

cottons.

TEXPROCIL

TEXPROCIL has become the international face of Indian cotton textiles,

successfully facilitating exports. For the foreign buyer, it has opened the entire

range of Indian cotton yarns, fabrics, and made ups and has become the one stop

source for it. While for the discerning Indian seller it has brought with in reach the

opportunities affordable by the global market. The ever increasing quantity of

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exports and diversity of markets tapped their testimony to the success of

TEXPROCIL.

The activities of TEXPROCIL extended to all areas related to the

promotion of exports. Collation and dissemination of information, fielding of trade

enquiry, administrating quotas, facilitating and interference between domestic

manufacturer and the global market and settling of disputes are some of the

activities of the council.

One of the most important functions of the TEXPROCIL is the collection

of vital market information and collation of the same. Information with regard to

new products, new ranges, government policies, rules and regulations, changing

trends, quality standards, products commanding greater demand in the global

market and statistics about the exports of Indian cotton textile are disseminated

regularly. This not only makes TEXPROCIL the premier prepository of relevant

information, but also provides the key inputs for the Indian seller as well as the

foreign buyer in their respective efforts.

KERALA STATE TEXTILE CORPORATION (KSTC)

Kerala State Textile Corporation Ltd. is a government of Kerala

undertaking. The corporation was incorporated in the year 1972 with the main

objective of setting up of or running textile mills in the state. The corporation has

four mills and one research & testing centre. Two other units, Sitaram textiles and

Trivandrum Spinning Mills ltd. are now vested under the administrative control of

Kerala State Textile Corporation Ltd.

[11]

MILLS UNDER KSTC

Prabhuram mill.

Kottayam Textile.

Edarikkode Textiles.

Malabar Spinning and weaving mill &

Centre for Applied Research and Development in Textile (CARDT).

Prabhuram mills, Kottayam textiles and Malabar Spinning and Weaving

mills were acquired by the corporation under Kerala Sick Textiles undertaking act

1985 freed from all liabilities and vested with the corporation with effect from

1/9/1983. The corporation on its own started Edarikkode textiles in the year 1987.

In addition to the above corporation has under its fold a research and

testing division (CARDT) which is rendering service to the testing of fibers, cotton

and yarn to the textile units in Kerala.

CHAPTER 3

COMPANY PROFILE

It is established in the year 1962 in the private sector and started

commercial production in 1968. The licensed spindle age was 25000. Company

was inaugurated by the deputy prime minister Sri Moraji Desai on 12/06/1968 and

started registered production on 01/11/1968. The installed spindleage was 12,472.

Due to severe financial problems the mill was closed in 1976. The central

government appointed Kerala Textiles Corporation Ltd. as authorized persons to

[12]

take over the management of Kottayam Textiles in order to nurse back the sick

mills to normal. The state government declared these units as a relief undertaking.

The state government invested more than 1 crore to modernize the

machines and increase the spindleage to 25,000 after the take over, in order to

nurse back the sick mill to normal. Later the units were nationalized by the

government of Kerala with effect from 01/09/1983.

The mill and KSTC are very keen in the continuous moderation including

the wide range of modernization with an outlay of Rs 250 lacs in 1988.

The mill is manufacturing super fine variety yarn in counts ranging 100,

90, 70 wrap. The quality of the yarn produced in the mill is widely accepted in the

market. The production, productivity and capacity utilization shows a steady and

continuous growth from the past.

The mill is able to utilize 95% of its capacity for past few years inorder to

improve labor productivity, a productivity linked by agreement by rationalizing the

work load is implemented recently by and this is first of its kind in all textile mills

in Kerala. 150 plus persons were allowed to retire voluntarily following the

implementation of agreement. Company got financial assistance from IDBI, ICFI,

IRBI in 1989.

LOCATION

Vedagiri is located 5 km from Ettumanoor. Prominent place in epic and

has a village atmosphere. Spread over 22.5 acres of land. Building of 1 acre. Rest

is with plants and trees. Many employees are from near by villages.

ORGANISATION STRUCTURE

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Employee Details

Permanent workers-115

Casual workers-96

Badlies-1

Trainees-100

Clerical staff-5

Top level executive-1

Middle level executives-9

Product Profile

The product of this mill is yarn in cone form, raw material used is cotton.

This yarn is the raw material in the production of fabrics. Yarn produced in this

mill count 70, 90, 100, multiple packing is used for dispatching this product. One

load consist of 160 bags, each weights about 50 kgs. Net weight of each cone is

1.25kgs.

Count wise weight of one cone (100% cotton)

80’s caeded 1.25kgs net

90’s premium 1.25kgs net

90’s super deluxe 1.25kgs net

100’s pure 1.25kgs net

100’s premium plus 1.25kgs net

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ORGANISATION STRUCTURE

[15]

Managing Director

General Manager

Assistant Manager (Electrical)

Electrician

Humidification Assistant

Switch Board Assistant

Deputy Manager (Spinning)

Sr. Assistant (Production)

Assistant Manager Jr. Manager

Fitter

Assistant Fitter

Sr. Assistant (Q.A)

Shift in charge

Jr. Manager

Sr. Assistant (Sales)

Sr. Assistant (Cotton)

Sr. Assistant (Accounts)

Personnel Manager

Chief clerk

Attender

Line jobber (Spinning)

CHAPTER 4

DEPARTMENT PROFILE

1. PRODUCTION DEPARTMENT

Working Time

Production department functions in 3 shifts

1st 8am-4pm 102 workers

2nd 4pm-12am 50-60 workers

3rd 12am-8am 50-60 workers

[16]

Blow room mixing and godown assistant

Preparatory caeding attender

Fitter jobber

Cone packer

Winder Doffing man

Chief clerk

Doffing jobber

Reserve sider

sider

Doffing man

Badli

Layout

Layout of manufacturing in this organization is product/line layout.

Production process

In Kottayam textiles production is carried in several process. Spinning is

the main process in the manufacture of yarn where yarn is classified into different

counts which show quality of yarn. Raw cotton has to pass through different

process before spinning which are known as blow room, caeding, drawing, comber

and sinplex. In the spinning ring frames yarn is made after giving twist and wound

in cylindrical tubes known as spinning cops. The ring frame cops are fed to cone

winding machine to convert this into cone form which is the finished product.

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General Manager

Deputy Manager (Spinning)

Sr. Assistant Assistant Manager Jr. Manager (Maintenance)

Shift in Charge

Sr. Assistant (Q.C)

Fitter

Assistant Fitter

Cleaner

Apprentice

Blow room, mixing and godown attender

Preparatory caeding attender

Process manufacturing flow chart

Raw cotton mixing Blow room caeding

drawing combing sinplex spinning cone

winding packing despatch

Godown and mixing

This is the first stage in production process. Here raw cotton purchased

mixes and sends to blow room. Godown has a storing capacity of 18,000 bails and

waste of 1000 bails. It stores about 1000 bails for production.

Number of workers working in this section is four. One man for 2400kg of

furnished lap for 26 days of 8 hours, mixing department functions in day shift only.

Charge man is responsible for waste bailing process and waste evacuation system.

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Doffing man

Line job spinning

Fitter jobber

Winder

Cone packer

Sider

Doffing men

Badli

Mill apprentice

Doffing jobber

Reserve sider

Machines used in mixing

Super bale opener

Axi-flow cleaner

Seperato mat asta

Cleaner R K

Blow room

Raw cotton bale, are opened and fed in the blow room machine. After

passing through different stages of beaters/openers in the blow room liners the raw

cotton is subjected to removal of seeds, trash foreign materials, short fiber and

converted into lap form.

The materials are mixed with usable waste and impurities are removed.

This mix is processed through blow room to make lap. The lap I further processed

to make yarn. The production of lap consists of two phase, mixing and blow room.

Only one plant in this section and number of workers in one shift is one.

It functions in three shifts. Total number of workers in this section is three. One

man shift efficiency irrespective of speed is 80%.

Machine used in blow room

Scutcher – used for the formation of lap.

Caeding

Lap feed on the caeding machine is converted into silver form after

removing the waste and short fiber contained in the lap. The caeding machine

moves the foreign patterns and waste and other trashes in the lap. By caeding

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process 60-70% of waste can be removed. In caeding department the main process

is the formation of silver and the silver is collected in plastic can as rope form.

Number of workers in first shift is four. Number of machines are 16.

Number of workers in second shift is two.

Machines used

Turmac machine

Testole machine

MMC machine

Caeding process

Lap feed blend flat web silver

Drawing

Drawing is an important section in the production. Eight set of silver in the

plastic can be fed at the back frame and made into one silver inorder to make more

uniform.

No. of drawing machine -6

No. of RSB machine -1

No. of workers in 1 shift -1

It functions in 3 shifts.

Machines used

Breaker

Finisher

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Lap former/ super lap former

After the drawing process the produced silver are made into another

machine named as ‘super lap former’. This machine helps to maintain the

formation of silver into small laps. Lap length is 160m.

Combing

In combing machine the short fiber of the drawing silver is removed to

get clean and even yarn.

Number of comber machine - 6

Number of lap comber - 2

Two in one shift and functions in three shifts.

Sinplex

The silver in different set of cans are fed at the back side of the sinplex

frames where the silvers are drawn , twisted and wound on plastic bodies.

Number of machines - 6

Functions in three shifts and number of workers in one shift are three.

Spinning

This is the major department having 57 machines, works in 3 shifts and

number of workers varies.

Sinplex roving’s fed on the creed of spinning frame, where again draft

and twist is applied to produce yarn. Here the yarn is wound in cylindrical plastic

tubes, which are known as spinning cops.

[21]

Cone winding

The yarn waste occurred during the course of windings are collected

separately, weighed and accounted as hard waste. Number of cone winding

machine is six. One cone weighs around 1.25kg. 50 bobbins are used to make one

cone. 50 spindles is the work load of a worker in cone winding department.

Packing

Mills finished product yarn in cone form is packed count wise in

different bags of 50kgs and 53kgs each net. These bags are cleared without

payment of duty and dispatched to Bombay.

These cones are consumed in weaving mills as raw materials, for the

manufacture of fabrics. Packing department functions in day shift only.

Number of workers is two.

Quality control

Quality control department functions to maintain the quality of raw cotton

and out put. For quality of output industry accepted parameters are practicing in

each process of production. Quality control inspector/supervisor is the in charge

of this department.

This department prepares cotton inspection report which is the criteria for

acceptance and rejection of raw cotton.

2.ELECTRICAL AND HUMIDIFICATION

[22]

Electrical section functions in three shifts. Three workers in each shift . 11

KV is converted into 440 V for production. Two transformers are used for such

purpose; three generators are in this department.

In the production department it is necessary to maintain 98 F dryness and

83 f wet and Rtt factor should be 52 F. Three supply fans and four exhaust fans are

used for such purpose.

Waste management

Waste in this mill is mainly from preparatory, spinning sections. Waste in

this mill is doubled compared to other mills. Amount of usable waste produced in

this mill is 1600kg/day. This costs about 6 lakh in one month.

Waste in this mill can be classified into two. In the production process of

cotton yarn it produce usable waste, which is further used for production and

sealable waste which is sold by inviting quotations.

3.PERSONNEL DEPARTMENT

[23]

General Manager

Assistant Manager

Electrician

Humidification Assistant

Switch Board Assistant

Functional area

Attendance savior management.

Salary administration.

Management of employee welfare activities.

Personal policy implementation.

Manage apprenticeship.

Selection of casual workers.

Maintain healthy industrial relation.

Maintain personal records.

Grievance redusal.

In personnel management, total number of employees are five; chief clerk-1, senior

assistant personnel- 1, junior clerk-1, attender-1. They are functioning under the

supervision of Deputy Manager (Personal).

Employee details

Total number of permanent employee in the mill is 209.

3 – 6 month apprentice.

[24]

General Manager

Manager (Personnel)

Chief clerk

Attender

178 – Scheme learners

Staff selection functions in day shift only.

Production department functions in three shifts.

Working hours

Office time is from 9am- 5pm. Interval from 1pm – 1.30pm. stores,

wrapping which directly connected to production department which functions

between 8am to 4 pm with half an hour interval.

Recruitment

Staff: - recruitment of staff is through employment exchange or PSC or as per the

directives from government. All recruitment of staff category will be made from

graduates, commerce graduates alone to accounts department. Computer literacy

would be an additional qualification required.

Workers: - recruitment of workers will be in the category of mill apprentices from

employment exchange and as per the direction of government.

Selection and placement

Selection and placement and distribution of personal are the responsibility

of the management subject to h aggrieve workers right of appeal.

Training

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Apprentice will have to undergo the prescribed period of training and have

to serve as badlies. Minimum training period for apprentices including dependents

of died employees will be two years. After completion of two years mill

apprentices may be enrolled as badlies worker as on the basis of attendance of not

less than 90% and efficiency.

Stipend payable to mill apprentice shall be as follows:-

1st month 25 Rs/day

2nd month 30 Rs/day

3rd month 35 Rs/day

4th month 45 Rs/day

The badli complement will be 10% of the required strength of permanent

worker per day including off relievers. Other shall continue as trainees, till

vacancies arise. All badlie should learn the work of all departments and should be

capable of doing all the works and duties of a permanent worker. No badlie will be

made permanent unless he has to not complete 20 actual working days in a

calendar year, including the day of no work and also paid holidays. Permanency of

badlies is subjected to availability of vacancies in permanent categories.

Leave

Staff: - those who have completed one year continuous service is eligible for total

36 days leave in a calendar year. For staff 13 SL, 12 CL and 20 EL is granted in a

calendar year.

[26]

Workers: - granted annual leave with wages as per the provisions of the factory act

1948. A worker will get 1 day leave in 20 days. No partial leave is provided to

avoid production loss.

Holidays: - holidays as per the Kerala Industrial establishment holidays act 1958.

Promotion

Staff: - promotion to higher grade is based on availability of vacancy, efficiency,

suitability and seniority of the person.

Workers: - the promotion of spinning department is from spinning doffing man

sider reserve sider jobber.

In maintenance category of workers vacancies will be filled up according to

the choice of management. If prospective personnel are not available in the mill are

qualified or experienced personnel will be recruited. If there are vacancies in the

production sides, cleaning and maintenance side at a time management decide to

fill up the vacancies from inside the production side. The promotion side will be

filled up 1st and the cleaning and maintenance then.

Transfer

Staff: - transfer of only management staff provided.

Workers: - only internal transfer is permitted. If a worker found efficient in a

particular department or management need the service of any employee, he may be

transferred to other department without affecting his present emoluments and

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status. In case emergency and heavy absenteeism occur. Work man should work in

alternate jobs where ever required.

Mutual shift change

Mutual shift change only for some designated workers is allowed.

Retirement

Staff: - must retire on super annulations on attaining the age of 58 years. If the

DOB of the employee falls on any day before the last date of month, his date of

retirement will be from the afternoon of the last working day of that month.

Death

Dependents of the dead employee will be considered for employment subject

to qualification, suitability and availability of vacancies and as per government

norms.

Discipline

It’s the responsibility of the management to maintain discipline inside the

organization. Code of discipline is abided by the code of conduct or discipline

evolved at the 15th sections of the Indian labor conference and adopted at the 16 th

section of the standing labour committee.

Grievance red versal

[28]

According to the settlement of 2001, unions will not support violation of

discipline inside the organization. For grievance redressel procedure through

normal channel, will be followed. Demo inside the mill premise, violence, use of

abusive language, willful damage to mill property, slow down of works, etc will

not be encouraged by unions.

General body meeting

Maximum one hour is granted to attend the general body meeting of Kottayam

textile cooperative society and the employee family welfare fund.

Annual increment of employee and workers

Salary Increment

Upto 884 Rs 8/-

885-909 Rs 9/-

910-934 Rs 10/-

935-959 Rs 10/-

For masons/jobbers/fitters

Upto 984 Rs 10/-

985-1009 Rs 17/-

1010-1034 Rs 18/-

1035-1059 Rs 19/-

[29]

1060 and above Rs 20/-

Welfare activities

Company will contribute 3.67 and 8.33% of gross salary will go to family pension

fund.

ESI

Employee and family avail this facility 1.75% of salary must be contributed by

employee and company will contribute 4.75%.

Club

Rs 2/- per month is contributed for this.

Labour welfare fund

It is for all employees. If death occurs, Rs 500 will be given for funeral.

50% of the salary of all members on that day will be given to the dependents.

LIC

Company directly collects this amount from the salary of those who joined

in LIC and hand over to LIC.

Co-operative society

Co-operative society and consumer stores functions in this company. Loan

upto Rs 75,000/- will be grant from society and this amount will be recovered from

the salary.

Canteen

[30]

Company provides food at reduced rates for all employees and collect Rs

38/- per month.

Over time

For staff (pay) -- 2×Basic +DA/26

For workers -- 2×Basic + variables/26

TRADE UNIONS

Six registered unions, among them four workers union and two staff union. Union

with more than 15% employee as member will get recognition.

Workers Union in Kottayam Textile Mill

Kottayam textile employee’s congress – KTUM

Kottayam textile workers union – INTUC

Kottayam staff and workers union -- CITU

Kottayam technical and general workers congress.

Staff union in Kottayam Textiles

Kottayam textiles staff union - INTUC

Kottayam textiles staff association.

Other unions, functioning in the organization without recognition are unions of

BMS and AITUC. Major trade unions are INTUC and CITU. Oters are KTUC and

INL.

Fund

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Membership fee is the main income of trade unions. It varies among trade unions.

4. ACCOUNTS DEPARTMENT

Functions

Keeps proper accounts data.

Raw material collection and issue.

Sell the finished goods.

Physical verification of fixed assets.

Physical verification of raw materials.

Prepare and maintain record of sales goods.

Prepare and maintain cost records.

Administer internal audit system.

Manage overall finance section of company.

Valuation of inventories

[32]

Junior Manager (Accounts)

Senior Assistant (Accounts)

Chief ClerkSenior Assistant (Cotton)

Senior Assistant (Sales)

Particular Method

1. Raw material At cost based on monthly weighted average method.

2. Stores and spares At weighted average cost.

3. Waste At the rates actually realized for the stock.

4. Work in progress At cost of net usable value which ever is

lower the later being actual value subse-

quently realized for the stock.

Loan and advance

Company has not granted any loan to companies from or other parties

listed in the register to be maintained under section 301 of companies’ act 1956.

Company has not taken any loan from firm, companies or other parties.

Internal control of internal audit

Internal control system functions with regard to purchase of inventory ,

fixed assets, sale of good, no service is provided by the company.

Fixed deposit

Mill has not accepted any public deposit, within the meaning of section

58A, 58 AA or any other relevant provision of act.

Accumulated loss

The accumulated loss of the mill is about 50% of its paid up capital of free

reserves. The mill has incurred cash loss during the financial year.

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Excise duty

Excise duty remits 2 times a month on an average basis.

Fund

Mill has not obtained any term loan during the year. No fund is raised on

short term basis, have been used to finance, short term asset except the

core/permanent working capital company has not raised any money from the

public issues during the year.

Share & security

Mill is not dealing in shares, securities, debentures, and other investment.

Mill has not granted any loan or advance on th basis of pledge of debentures,

shares and securities.

5. MARKETING

No separate marketing department function in Kottayam textiles. Marketing

function is under the accounts department.

Product

Product of Kottayam textiles is cotton yarn in cone shape which counts 80’s,

90’s, and 100’s which is used in fabric manufacturing.

Sale

Cotton yarn is being sold through two consigned agencies, Natvaralal

Mangaldas Company, Mumbai and Vikas textiles, Mumbai.

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It functions as a department of Kottayam textiles. Chief clerk in accounts

department administer the consignment sale of yarn. No service

(guarantee/warranty) is provided by the company as damage occurs rarely.

Company despatches 6 load per month, each load weighs about 8000kgs.

Price

Each load price of yarn is determined based on daily market price.

Competition

Count of high quality yarn is 160’s, even though private mills produce high

quality yarn, company has to face less competition in sales.

Purchase of raw materials

From Karnataka, Madhya Pradesh, Tamil nadu under regulation of KSTC. Raw

materials are issued and receipt procedures are handled by the cotton clerk.

Procedure

Company can demand for purchase of cotton at the meeting held at the

head office of KSTC once in a month. According to this head office places

purchase order to suppliers. Raw cotton is supplied directly to the mill. Accounts

department record the detail in cotton contract file and cotton is transferred to the

godown. It is issued to mixing unit according to requirement and recorded in

cotton issue register.

Stock taking

It is on monthly basis recorded in cotton stock register.

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6.STORES DEPARTMENT

Process

Material requirement from various departments are catering in this

department. Purchase committee includes GM, Technical officer, electrical

engineers, and accounts officer. Purchase requisition with the approval of GM’s

placed here. Some purchases may be local for other purchase; quality and rate of

the concerned companies are considered. With the approval of the purchase

committee, purchase order is placed. After receiving the materials are placed store

room and each set comprise bin card. It distributes according to the requirement of

various departments.

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General Manager

Store Keeper

Store boy

Store department stock material worth 30 lakh. The account department value, the

inventory through periodical audits. Number of spare part, handling in this

department is about 6000. It includes inventories for 3 month in advance.

Functions of stores department

File purchasing requisition.

Send enquiry form

Place purchase order

Receive material

Issue, receive note/approval slip

Maintain record

Categorize spare parts

7.SECURITY DEPARTMENT

Security department is vital part in an organization. It is essential to

maintain the order of the organization.

Security department in Kottayam textiles function on contract basis.

Contract period is one year. Now the agency providing security is .

Number of security in this department is five including chief. 24 hours service.

Two shifts of 12 hours.

Duties

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Maintain record of temporary/ contract employees

Files the details of visitors

Check vehicle from outside

Accompany visitors inside the production department.

To maintain security of the organization.

CHAPTER 5

SWOT ANALYSIS

Strength

Good employee-employer relationship

Modernization plan

Comparatively less harm to environment

Village atmosphere

Hard working employees

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Quality of product

Provide employment in village sector

Self generated funds

Weakness

Noisy atmosphere

Dusty and hot working conditions

Absence of website

Absenteeism

No optimize use if IT

Absence of own security department

Opportunities

Positive approach to globalization

Export of yarn

Maximum utilization of government policy support an financial support.

Adaptation of new technology

Product diversification

Tie up with small scale production units

Threats

Imports of yarn

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Private units producing high quality yarn

Change of farmers to other profitable crops

Seasonal changes which affect the cultivation of cotton

Change in the preference of people to fabrics other than cotton

Findings

Kottayam textile is a spinning mill which function under the governance of

KSTC

Good individual relationship is one of the major features of the organization.

This organization provides employment in villages and less pollutes the

environment.

Product is cotton yarn which count 80’s, 90’s and 100’s

Doesn’t have a separate marketing department

Mainly four workers union and two staff union function in this organization.

The organization is suffering from continuous loss

Suggestions

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Should try to produce high quality yarn

Should take preventive measures to reduce absenteeism

Provide transportation facilities

Should try for diversification of product

CHAPTER 6

CONCLUSION

Kottayam textiles is a spinning mill which functions under KSTC Ltd.

here I found good industrial relationship and committed employees, even though

the production department is noisy and hot; production in this mill is less harm to

environment and it provides employment in village sector. Mill compound is full

of trees and plants. Product of this company is fine cotton yarn which counts 80’s,

90’s, & 100’s. It is being sold through a consigned agency in Mumbai. A

modernization plan of Rs 6 crore is waiting for the approval of government. If this

occurs this mill could comply with globalization and make challenge to other

private sector high quality yarn producers.

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BIBLIOGRAPHY

1) Kotler, Philip, Marketing Management,

Prentice Hall of India Private Ltd.

New Delhi, 11th Edition 2002.

2) Flippo .B.Edvin, Personnel Management

Mc Graw Hill International Editions,

Management Series 6th Edition

3) Kothari C.R, Research Methodology

Wishwa Prakashan 2nd Edition

4) Dr. Guptha.C.B , Human Resourse Management

Sultan chand &Sons, Educational Publishers, 6th Edition.

5) www.cottonboard.org

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6) www.textileworld.com

7) www.riab.org

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