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EXECUTIVE SUMMARY ................................................................................................................ 3 1. 1.1 1.2 1.3 1.4 1.5 1.6 2. INTRODUCTION ...................................................................................................................... 4 OBJECTIVES OF THE STUDY ............................................................................................ 5 SCOPE OF THE STUDY ....................................................................................................... 5 IMPORTANCE OF THE STUDY ......................................................................................... 6 ACHIEVEMENTS OF STUDY ............................................................................................. 6 LIMITATIONS ....................................................................................................................... 6 RESEARCH METHODOLOGY ............................................................................................ 7 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. 6. COMPETITORS ....................................................................................................................... 31 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
9.1 THREAT FROM NEW ENTRANTS......................................................................................... 77 9.2 AVAILABILITY OF SUBSTITUTES ....................................................................................... 77 9.3 BARGAINING POWER OF BUYER ........................................................................................ 78 9.4 9.5 10 BARGAINING POWER OF SUPPLIERS ........................................................................... 78 COMPETITIVE RIVALARY .............................................................................................. 78 MCKINSEYS 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. 13. 14. 15. SUGGESTIONS ................................................................................................................... 82 CONCLUSION ..................................................................................................................... 83 BIBLIOGRAPHY ................................................................................................................. 84 APPENDIX ........................................................................................................................... 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 datas are primary and secondary. Consultation with the manager of various departments has helped me to fetch primary datas. 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 Porters 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.
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.
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.
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.
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.
Secondary Sources
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. Indias 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 Chinas 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)
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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
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)
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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 Keralas 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.
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3. COMPANY PROFILE
Anna Groups 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)
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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))
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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 groups 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.
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Products: Thermal Cookers, Pressure Cookers, Multi Steamer, Non Stick Cookware.
KITEX LTD
Anna Groups 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.
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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 suitings 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)
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KITEX LIMITED
Anna Groups Textile unit KITEX LIMITED was established in 1975 at Kizhakkambalam, Aluva in Ernakulum district. This prestigious company one of the vibrant division of AnnaKitex 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 multicrore 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 its 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
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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 consumers 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.
QUALIFICATION OF EMPLOYEES
: Professional qualified having sufficient industry experience. : Graduation and above with experience in relevant data(Both
management and technical) Junior Level experience. : Diploma/ industrial training certification in textile industry
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( (http://annagroup.net/the-group.php, 2012)
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VITAL STATISTICS
Name Address Registered Office Nature of incorporation Nature of business Brand name of product Total build up area KITEX LIMITED Kizhakkambalam, Aluva, Ernakulum. Kizhakkambalam Private Limited company. Manufacturing cotton. Kitex 1650000 sq. ft. 500 modern loom (CIMMCO/SULZER/RARER) 20 million squire meter of cotton and cotton blends.
Production capacity Employment potential Founder Chair man Total capital employed Annual turnover Bankers Managing Director Auditor
3500 sq. meters day. 2000 Mr. M.C .Jacob. Mr. Bobby Jacob and Mrs. Mini Bobby. 2 crores. 100 crore Federal Bank, ICICI, Canara Bank. Sabu Jacob Varma & Varma, Ernakulum
(Kitex Ltd, 2012)
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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.
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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 paddings 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.
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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.
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.
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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 days work, jump into lungies to ease your tension, to smooth your senses and to feel relaxed. Name Executive Medium Medium super Standard Supreme Economy Length 130cm x 200 cm 127cm x 200 cm 127cm x 200 cm 127cm x 192 cm 127cm x 200 cm 127 cm x 192 cm Price 175 Rs 138 Rs 150 Rs 105 Rs 150 Rs 126 Rs
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NAME Sweet dreams 50 Sweet dreams 60 Sweet dreams double sheet Duo 1 sd 60 bed sheet + 2 pillow covers. Solitude 1 double sheet Sweet dreams king size Duplex 1 solitude bed sheet + 2 pillow covers Soft dreams king size + 2 pillow covers Sweet dreams DS + 2 pillow covers
225 cm x 250 cm
575 Rs
225 cm x 175 cm
435 RS
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MULL
NAME Economy Medium LENGTH 127 128 PRICE 48 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 youll love to drape. The anywhere anytime wears. SAMRAT: - Pure cotton white double dhothy with lines in 5 different colors to choose from.
NAME Ready wear Smart line single. Smart line gold single Smart double Smart plus double dhothy white board Kara Smart ivory plus XL Smart premium RX
LENGTH 128 cm x 200 cm 120 cm x 200 cm 127 cm x 200 cm 127 cm x 385 cm 127 cm x 835 cm
260 Rs 310 Rs
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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.
( (http://annagroup.net/products.php?c=2), 2012)
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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
VISION
CUSTOMER
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.
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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.
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%.
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5. COMPETITORS
From the marketing department, we can get an idea about their products, marketing strategies, strength and weakness, competitors, competitors strategy, attraction, weakness etc. Major competitors are MCR, Angel, Janson, VBC, KKB, Ram Raj and others. The competitors 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.
(http://www.mcrtextiles.in/), 2012)
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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 companys 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.
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Chairman
Managing Director
General Manager
Finance Manage r
Personnel Manager
Production Manager
Quality Manager
Purchase Manager
Marketing Manager
Store Manager
Assistant Manager
Assistant Manager
Weaving Master
Assistant Inspector
Executive Manager
Personnel Officer
Shift In
Checkers
Staff
Clerical Staff
Welfare Officer
Supervisor
Assistant Manager
Assistant Manager
Clerical Staff
Foreman
Marketing Executive
Workers
Clerical Staff
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General Manager
Manager (Fabric)
Assistant Manager Asst. Manager (Processed Fabric) Asst. Manager (Buy) Assistant Manager
Media
Art Work
Marketing Executive
Marketing Executive
Marketing Executive
Marketing Executive
Marketing Executive
Marketing Executive
Sales Executive
Sales Executive
Sales Executive
Sales Executive
Sales Executive
Sales Executive
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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 dealers shop. The product are transported to the dealers by the dealers by the companys 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.
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.
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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. Companys 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 Karas and colors of
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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 companys poor quality products due to polyester mix, poor color etc its 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
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Nearest places:
Railway station Airport Town Hospital : 14 km : Cochin (2.5) : 24 km : 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)
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T.V Video Ads Close Circuit TV Print media Demonstration and sponsor events Advertising agency Paper advertisement
: : : : : : :
DD, Asianet, Surya. C.E.E Videos, SAN Videos K.S.R.T.C, Railway station All dailies, Vanitha, Grihalakshmi etc Banner, Meal board, wallpaper etc TVC Factory Ernakulum Chavara Agencies, X Dous
Producer Producer
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.
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MARKETING SYSTEM
PRODUCTION
SHOWROOM DEALERS
CUSTOMERS
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.
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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.)
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General Manager
Finance Manager
Manager (Accounts)
Assistant Manager
Assistant Manager
Assistant Manager
Executive Bank
Cashier
Executive Audit
Executive Company
Executive (Excise)
Executive (Fax)
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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.
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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
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.
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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.
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General Manager
Personal Officer
Administration Officer
Security Officer
Administration Officer
Security Staff
Clerical Staff
Canteen Supervisor
Hostel Warden
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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
Human Resource planning.(HRP) Industrial relations Recruitment. Interview and selection Probationary period. Training and development Employee remuneration. Performance appraisal.
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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 employees 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 companys 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.
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Receiving Application
Screening of Application
Interview
Reference Checking
Final Selection
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.
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Professional knowledge Promptness. Dependability. Attitudes toward supervisors. Attitude toward a co-workers General ability. Attendance and punctuality.
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:
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INCENTIVES
Besides the above package the employee well get other incentives like production incentive, Sunday-Monday incentive etc.
I.
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.
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 companys performance in the previous year, 8.33% of the profit is given as bonus every year.
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GRATUITY
KITEX LTD maintains a Gratuity scheme for its employees who have completed 5 years of experience including training period.
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
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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.
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General Manager
Manager
Manager
Shift in Charge
Shift in Charge
Shift in Charge
Preparatory In Charge
Maintenance in Charge
Supervisor
Supervisor
Jobber
Jobber
Jobber
Worker
Helper
Helper
Helper
Seizer
Plant Cleaner
Humidifier Operator
Electrician
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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.
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.
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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.
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
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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.
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Cotton Yarn
Warping
Pirn Winding
Sizing
Beam Drawing
Weaving
Grey Cloth
Checking
Cutting Dispatch
Rechecking
Folding
Unwinding
Grading / Sorting
Recounting
Bailing /Packing
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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.
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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.
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.
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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
2. SEITON (SYSTEMATIZING)
Use labels, color codes for easy identification Use index for files, record, drawing etc. To facilitate irretrievability Plan storage with accessibility
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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)
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General Manager
Purchase Manager
Purchase Officer
Purchase Officer
Office Assistant
Office Assistant
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.
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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.
Make purchase of good qualities materials to have minimum wastage and loss in production.
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Store (10)
Payment (13)
Material (6)
Inspection (8)
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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.
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Manager
Checkers
Re checkers
Checkers
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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 Demerit either length or width Up to 3 inch Over 3 inch up to 6 inch Over 6 inch up to 9 inch Over 9 inch 1 2 3 4
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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.
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GENERAL MANAGER
STORE MANAGER
OFFICE ASSITANT
OFFICE ASSITANT
OFFICE ASSITANT
OFFICE ASSITANT
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
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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 MANAGER
STORE OFFICER
STORE ASSISTANT
STAFF
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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.
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Production Control
Stock
Store Stock Delivery Report Stock A/C Section Material Material Receiving Report Store Issuing Section
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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.
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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 days 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.
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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.
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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.
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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.
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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.
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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 customers 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.
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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.
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14.BIBLIOGRAPHY
Aswathappa, K. ( 2005). Human Resource and Personnel Management. In A. K, Human Resource and Personnel Management. New Delhi: Tata McGraw-Hill publishing company Limited. http://annagroup.net/products.php?c=2). (2012, september 1). Retrieved from annagroup.net: http://annagroup.net/products.php?c=2) http://annagroup.net/the-group.php. (2012, august 23). Retrieved 2012, from annagroup.net: http://annagroup.net/the-group.php http://annagroup.net/the-group.php. (2012, august 26). Retrieved from annagroup.net: http://annagroup.net/the-group.php http://annagroup.net/the-group.php. (2012, september 5). Retrieved from www.annagroup.net: http://annagroup.net/the-group.php http://www.mcrtextiles.in/). (2012, august 23). Retrieved 2012, from mcrtextiles.in: http://www.mcrtextiles.in/) K, A. ( 2005). Human Resource and Personnel Management. In A. K, Human Resource and Personnel Management. New Delhi: Tata McGraw-Hill publishing company Limited. Kitex Ltd. (2012, july 3). eranakulam , kerala, india. Kotler Philip and Armstrong Gray. (2008.). Principles of Marketing. In Principles of 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/indiantextile-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
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15.APPENDIX
15.1 ABBREVIATIONS
WTO ATC MFA KITEX LTD TQM K.S.R.T.C GRN ESI ACT EPF ACT GDP ICICI TQM
World Trade Organization Agreement on Textile and Clothing Ministry Of Foreign Affairs Kizhakkambalam Textile Limited Total Quality Management Kerala State Road Transport Corporation Good Received Note Employees State Insurance Act Employees Provident Fund Act Gross Domestic Product Industrial Credit and Investment Corporation of India Total Quality Management
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