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JEMINI VARGHESE
During this period cloth was made from materials including Wool, flax and
cotton .The material depended on the area where the cloth was being produced, and
time they were being made. In the latter half of the medieval period in the northern
part of Europe ,cotton come to be regarded as imported fiber .During the later phase
of the 16th century cotton was grown in the warmer climes of America and Asia
During the Industrial Revolution, new machines such as spinning wheels and
handlooms came into the picture; making clothing material quickly became an
organized industry-as compared to the domesticated activity it had been associated
with before. A number of new innovations led to the industrialization of the textile
industry in Great Britain. In the initial phases, textile mills were located in and around
the rivers since they were powered by water wheels. After the stream engine was
invented, the dependence on the rivers ceased to a great extent .
Global Scenario
Japan, India, Hong Kong and China became leading producers due to their
cheap labor supply, which is an important factor for the industry the World Trade
Organization (WTO) has taken so many steps for uplifting this sector. In the year
1995, WTO had renewed its MFA and adopted Agreement on Textiles and Clothing
(ATC), which states that all quotas on textile and clothing will be removed among
WTO member countries. However the level of exports in textiles from developing
countries is increasing even if in the presence of high tariffs and quantitative
restrictions by economically developed countries. Moreover the role of
multifunctional textiles, eco-textiles and customized textiles are considered as the
future of the textile industry.
Indian Scenario
Till the year 1985, development of textile sector in India took place in terms of
general policies. In 198, for the first the importance of textile sector was recognized
and a separate policy statement was announced with regard to development of textile
sector .In the year 2000, National textile policy was announced. Its main objective
was to provide cloth of acceptable quality at reasonable prices for the vast majority of
the population of the country, to increasingly contribute to the provision of sustainable
employment and the economic growth of the nation and to compete with confidence
for an increasing share of the global market. The policy also aimed at achieving the
target of textile and apparel exports of us$ 50 billion by 2010 of which the share of
garments will be us$ 25 billion.
a. India has rich resources of raw materials of textile industry. It is one of the
largest producers of cotton in the world and is also rich in resources of fibers
like polyester, silk, viscose etc.
b. India is rich in highly trained manpower .the country has a huge advantage due
to lower wage rates. Because of low labor rates the manufacturing cost in
textile automatically comes down to very reasonable rates.
c. India is highly competitive in spinning sector and has presence in almost all
processes of the value chain
d. Indian garment industry in very diverse in size, manufacturing facility, type of
apparel produced, quantity and quality of output, cost, requirement for fabric
etc.. It comprises suppliers of ready-made garments for both domestic or
export markets.
e. Indian textile industry is highly fragmented in industry structure, and is led by
small scale companies. The reservation of production for very small
The cotton textile industry is reeling under manifold problems. The major
problems are the following;
Sickness:-
Obsolescence:-
Govt. Regulations:-
Government Regulations like the obligation to produced controlled cloth are against
the interests of the country. During the last two decades the excessive regulations
The first cotton textiles mill was established in 1883 in Kallai near Kozhikode by P.S
Santhappa Chettiyar and M. Guptan Namboothiripad, known as Malabar Spinning
and Weaving Mill. The commercial production was started in 1887. Later in 1976 the
mill was taken over by Government of Kerala and handled over to Kerala state
textiles corporation. The second mill presently called Parvathi Mills Ltd. Was started
in 1884 by James Darragan, an English man using 19 acres of land donated by the
Maharaja of Travancore. In 1888, the mill was sold to another British industrialist
named AT VIN. In 1932 the management was taken over by Kerala Textiles
Corporation. In April 1974, the mill was nationalized under sick textiles undertaking
(nationalization) Act and was made a unit of National Textiles Corporation (NTC)
Limited Bangalore, which is a subsidiary of NTC Delhi. Sitaram Textiles Ltd.,
another oldest mill was established in 1903 as a Private Limited Company. Balarama
Iyyer started it. Later due to mismanagement and labor trouble, company was
liquidated in 1954.
The factory was gutted down due to fire in 1959 and spinning production was
completely stopped. The Government of Kerala purchased this unit as a result of
liquidation and public auction in 1972, with the modest start of these mills, the
number of cotton textile mill rose to 31. The government of Kerala has announced in
state assembly on March 29, 1994, its Willingness to start 5 more spinning mills, one
each of Kazargod, Kozhikode, Trissur, Kottayam and Malapuram along with the
commissioning of corporative spinning mill at Alappy with a spindle capacity of 6000
spindles.
There are 16 private mill in Kerala of which 14 are spinning mills and the rest
2 are composite mills. The national textile corporation has got under it, 4 spinning
mills and 1 composite mill. The corporate sector owns only 2 spinning mills. In
Kerala the Trissur corporative spinning mills with an installed spindle capacity of
12,000 spindles is the smallest mill followed by Kathayee Cotton Mills Limited with
14,860 spindles.
Another welcome feature was that a 100% export oriented unit, Past Pin India
Ltd. Started commercial production at Palakkad. These units are located at Palakkad
near Tamilnadu border. Another corporative mill, Allepey Corporative spinning mill at
Kayamkulam is yet to be commissioned. Out of the 31 mills in Kerala, 14 are private
sector, 8 under National Textiles Corporation, 4 under Corporative Sector and 5 under
K.S.T.C.
Global textile & clothing industry is currently pegged at around US$ 440 bn.US
and European markets dominate the global textile trade accounting for64% of
clothing and 39% of textile market. With the dismantling of quotas ,global textile
trade is expected to grow (as permckinsey estimates) to US$650bn by 2012 (5 year
CAGR of 10%). Although China is likely to become the 'supplier of choice', other low
cost producers like India would also benefit as the overseas importers would try to
mitigate their risk of sourcing from only one country. The two-fold increase in global
textile trade is also likely to drive India’s exports growth. India's textile export (at
US$ 15bn in 2005) is expected to grow to US$ 40bn, capturing a market share of
close to 8% by 2012. India, in particular, is likely to benefit from the rising demand in
the home textiles and apparels segment, wherein it has competitive edge against its
neighbors. Hence, the bargaining power of customers is strong. For that reason, it is of
importance for a producer of apparel to differentiate their products or production so it
will not compete with price as primary mean. Differentiation is accomplished either
by quality or service. Differentiation can be considered as especially important in the
Indian textile industry since contracts are usually set on short-term basis and are
rarely set more than six months ahead. Hence, there is a need to tie the customer to
manufacturers without the need of explicit contracts. And thus, the bargaining power
for the Customer is improved.
India is a country where we have numerous players in textile industry which all
are varied in terms of size and power. There has been increase in production and
supply of textile products in last few decades globally, mainly due to rapidly changing
social and economic structure of the countries worldwide. In past few years,
especially after the removal the trade related tariffs and non-tariff barriers in 2005,
Asian countries such as India, china, Hong Kong and Japan have emerged as major
players in this particular industry, mainly due to their changes on economic front and
infrastructure developments. The large number of available suppliers in India gives an
initial indication of a weak bargaining position for the supplier group. Additionally,
the supplier group lacks switching costs and has a low level of product differentiation.
An advantage which the Indian Suppliers group has capitalized on is, Due to
their ability to integrate forward in value added chain, they have achieved a better
bargaining position towards textile manufacturing. As previously seen, companies in
the textile and apparel sector have established forward to create vertically integrated
company groups. Deep relationships between manufacturers and suppliers illustrate
how important the textile manufacturing industry is for the supplier group. An
example of this is how suppliers and manufactures interact in activities such as
research and development (R&D). By this process the supplier obtains knowledge on
what customers downstream in the value added chain demands.
Here the Industry is dealing with production and marketing of Lungies, Mull, Bed
sheets, Innerwear’s etc. These products are used for a specific purpose only. So none
of the Different category product can’t be replace the product. There are variations in
types of clothing and material. Variations in textile segment can also be identified as
trends in fashion and styles. Hence products within the apparel segment can act as
substitutes but the general conclusion still stands there’s no substitute products.
More than three decades age in 1968, 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 risk world of manufacturing industry and
hoped for the best, while working very hard to make his maiden venture to a great
Anna Group, a multi core success story began in 1968 is now spread heading
the thrust in to the new millennium. From a company devoted to the manufacture of
aluminum vessels and utensils, it involves spices and fabric, school bags, garments
and marine exports. It has emerged as a Multidimensional giant with interest in
various fields ranging from textiles to spices to baggage. Anna Group, where quality
the buzz word has opened new vistas of exciting challenges. Today Anna ranges of
product are very popular in domestic market and overseas.
Anna-Kitex group is one of the leading industrial groups in the state of Kerala
employing more than 12,500 personnel for the past 40 years. The group is engaged in
the manufacture of diverse products like garments, textiles, school bags, travel bags,
umbrellas, aluminum utensils, kitchen appliances, branded spices, curry powders and
ready to eat food which is marketed in the famous brands of Kitex, Scooby-day, Anna
aluminum, Chackson and Saras. The Anna-Kitex group is a pioneer in the fashion
industry Anna Group, Where quality - the buzzword - has built success.
Anna range of vessels and utensils are highly popular in the Middle East, USA,
Africa and Australia. The organization comes under Anna Group are as follows:
a. Kitex Limited
b. Anna Aluminum Company (Chackson)
c. Sara’s spices
d. Kitex Garments
e. Scoobeeday products pvt ltd
1Kitex Limited
Anna Group’s weaving unit, Kitex Limited was established in 1975. The company is
engaged in the production of fabrics made of cotton and other blends, grey cloth, bed
sheets and lungies. Through the years, the company has carved a niche for itself in
this highly competitive industry with its tradition of world class quality.
Kitex products are marketed through 2000 authorized dealers. Kitex fabrics
are now exported to many parts of the world. Kitex is going in for a major expansion
plan to augment the production capacity. At the dawn of the new millennium Kitex
entered in to the luggage and baggage industry under the brand name of scoobeeDay.
VITAL STATUS
Growth : Steady
Chairman : Mr Bobby.M.Jacob
ISO CERTIFICATION
They are the leading manufacturer with ISO 9001 - 2000 in South India of all
varieties of Greige Fabrics, Yarn dyed fabrics, Dobby and Leno dobby fabrics made
of Cotton, Polyester cotton, Cotton Nylon, Cotton Flax, Linen, Cotton Linen, Cotton
Lycra etc
1Vision of KitexLtd
Objectives
1. Increase sales of value added item by 20% from the existing level.
2Product Details
2.1 Lungies
a. Executive
Superior quality lungies available in various designs and colors.
b. Medium Super
Comfortable lungies you would love to drape. Available in various designs
and color combinations.
2.2 Dhothies
a. 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 outdoors.
b. Smartline Gold
Cream color single dhothy with streaks of Gold Jerry lines for special
occasions.
c. Ready wear
Plain white single dhothy you'll love to drape. The anywhere, anytime
wear.
d. Samrat
Pure cotton white double dhothy with lines in 5 different colors to choose.
2.5TrawelldayBags
The company has ventured into a new segment of bag production as TREWELLDAY bags.
This wide ranges of luggage and baggage products with latest trends and design and is made
from imported raw materials. The bags are priced premium and has good market share. The
price range is from Rs.650/- to Rs.3000/-. The range includes
a. Trolley bags
b. Travel bags
c. Business bags
d. Lap- top bags
e. Back- pack bags
f. Beauty case bags
Kitex has made its foray into the untapped lingerie segment with brand names Adonis
and AGNA. ADONIS-inner wear for men and AGNA- inner wear for ladies, with
3 Organization Structure
Kitex Ltd follows the line or military organizational structure. Managing Director is
the top level, other functional managers followed by him. The span of management in
the organization is narrow span. 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 supervisors. The model of the organization design is
mechanistic model.
Managing director who are the representatives of the shareholders take the
important decisions of the group concerns. They perform strategic planning and
policy making functions of Kitex ltd. For their help General Manager, top executives
of the company management are appointed. General manager is responsible for the
smooth, efficient and productive functioning of the units from the production to the
marketing.
b) Middle Level: Graduation and above with experience in the relevant areas (both
technical and managerial)
ORGANIZATION CHART
THE ORGANISATION
Vice President
General Manager
23
Workers
Manager executive Manager executives Executive
THE DEPARTMENTS
Finance is the life blood of business. Finance department consists of all the
managerial activities of raising funds and effective utilization. Finance department lies
in decision making area of investment, finance and dividend. Recruitment and
promotion in production are the activities of H.R Department. But it requires the
payment of wages, salaries and other benefits; these are done by finance department.
Finance manager is the head of finance in Kitex. He decides when and where to
acquire funds to meet firms investment needs. He should determine the proposition of
equity debt. The finance department should strive for obtaining the optimum capital
structure for the organization.
The activities expected from a finance department cover a wide range from basic
bookkeeping to providing information to assisting managers in making strategic
decisions. What to expect from your finance department will depend largely on
factors such as how much involvement the owner/manager has in the organization.
At the base level, your finance department will be responsible for all the day to
day transactional accounting for the business. This will include the tracking of all
transactions and the management of any government reporting. In very small owner-
managed businesses this role is often filled by a family member with accounting
experience. An outside accounting firm is usually used for annual financial statements
and returns. In larger organizations this role will extend right through to preparing the
financial statements with an external auditor engaged for assurance purposes.
Where there are cash needs beyond the day to day working capital, the finance
department is responsible for advising and sourcing longer term financing. Financing
may be obtained though bank or private lender debt or, in applicable firms, share
issues to private investors. If the organization is ready to target angel investors or
venture capitalists the finance department will be key in preparing the documents
required for these presentations and may work with outside consultants on a company
valuation. In larger firms considering public share offerings the finance department
will assist with the preparation of the offering documents but will likely also use
outside consultants to advise on this complicated process.
With the must-do’s taken care of, the finance department can now start to
contribute to the management and improvement of the operations by measuring and
reporting regularly on key numbers crucial to the success of the organization.
Management accounting information is information that managers can use to monitor
the operations and decide where further attention may be required. It will likely
include some non-financial information and should be communicated to managers in
a way that is easy to understand. In smaller owner-managed businesses this resource,
though extremely important, is often overlooked or ignored.
Looking forward, the finance department will work with managers to prepare the
organization’s budgets and forecasts, and to report back on the progress against these
throughout the year. This information can be used to plan staffing levels, asset
purchases and expansions and cash needs, before they become necessary. Some
organizations often ‘plan’ by the seat of their pants, while organizations know it is
important to have some idea of where you want to go before you start going there.
In addition to the above mentioned works, the following reports prepared by the
finance department
Chairman &
Managing Director
General Manager
Cashier
a. Design of product
b. Design of production system
c. Production planning and control
d. Layout of plant
e. Selection of location
f. Selection of plant and equipment
g. Research and development
General Manager
Manager Manager
Jobber Helper
Weaver
It is imported from Switzerland. The advantage of Sulzer Looms are high aped
and more production than power Looms. It is fully automated and high quality of
goods produced and manpower is less. Width of the cloth produced by modern looms
are more than power looms
Ordinary power looms required two persons per loom. Two modern looms
require one person. That means 505 of labor expense can be saved by modern looms.
The ordinary looms are also in the process of automation and modernization. 75 % of
modernization work is completed.
The company never faced any raw material shortage. This is due to efficient
supply chain management, scientific estimation of raw material requirements and
timely procurement of raw materials. The purchase department plays active role in the
effective and timely procurement of raw materials. The total average consumption of
100 % yarn / month.
Production Program
a. Spinning
b. Weaving
In spinning, the yarns of various counts are manufactured. Count is the measure of
fines of the yarn. The process of manufacturing the pure cotton Greige cloth from this
cotton yarn is called weaving.
In Kitex Ltd, the weaving of cotton Greige cloth is the major process. The basic
output of this unit is 100 % cotton Greige cloth, which is the raw material of most of
the cotton textile industries. About 85% 0f the total sales of these units are from the
sales of lungies, mull, bed sheets, and dhothies prepared from this cotton Greige cloth
Production Process
There is a lot of process should be given to cotton yarn before it undergoes the
process weaving and whole department is known weaving preparation. It is the heart
of weaving mill in the preparatory department the yarn undergoes the process namely
a. Warping
b. Sizing
c. Beam Draw-In
a) Warping
The yarn from spinning mills gets in the form of ones, copies etc… The warping
process consist in winding of a known number of warp threads of a definite length
parallel to each other on warping beam or weavers beam from the cones according to
the number of ends from particular quality there a limit for the number of ends to be
taken in a warping beam. It is known as creel capacity of warping machine. In Kitex
Limited, warping machine is made from Amritha lakshmi Machines Works, Mumbai.
Its real capacity is 564. Before taking a new quality in warping, we have to know
about the construction details of fabrics quality at least the total number of warp ends
in the particular quality. The speed of warping machine might be variable according to
the count of the yarn depending up on the kind of stock yarn and processing
technique.
It is the process of strengthening the yarn wound on beam (warp). In this process, the
warp is passed through sized chemicals, which are mainly starch and other adhesives.
This process makes the yarn more rigid and this prevents from breaking while
weaving. The purpose of sizing is to ensure processing of warp in looms with
minimum breakings.
b) Beam Draw-In
The warp from sized beam is first drawn through dropped wires, healds and
clothes and then read dents according to the design to weave (plain/ twill, drill, stain,
weave etc. These drawn beams are gaited or knotted in the loom for weaving. Trained
and experienced beam drawers do this work manually
c) Pim Winding
d) Weaving
The method or process of interacting two yarns so that they cross each
other at right angles to produce fabrics. The warp threads length wise fabrics and
filling threads (weft and picks) run front side to side. The weaving looms may be
classed in to two groups that is looms are intermitted fabric formation and looms for
continuous fabric formation the woven fabric cut down from the loom is again
unwounded and checked the quality by supervision of trained checkers and re
checkers before folding and bailing. The checking inspection is as per American 4
Point System.
e) Folding
f) Recounting
The meter length is again recounted and assured the fabric and sealed and
gone for bailing
g) Grading / Sorting
In the quality department, the following operations are carried out
-Sorting or grading of Greige fabrics
-Checking all technical conditions stipulated for fabrics from fluff, thread ends
-Knots and tags putting a speed mark with a pen on the ends of the fabric piece
h) Bailing
The graded or sorted fabrics packed in bailed condition under the supervision on the
basis of quality. The standard packing in one ball contains 1000 meters. For bailing,
the company has a bailing press which is in good working condition
Pollution Control
The company doesn’t have any pollutant products or bye products. The only
pollutant may be cotton particles that may get spread in the loom shed. To prevent
this, the factory is having sufficient humidifier to help the cotton particles settle on the
Yarn
Sizing
Beam Draw in
Knotting Weaving
Greige Cloth
Marketing Department
Marketing is the activity through which a company is able to generate the revenue for
the functioning of the organization. Kitex Ltd. Has got a very good marketing
department controlled by efficient and dynamic marketing manager. Marketing
manager reports to General Manager and Managing Director. Marketing department is
divided in to three such as Marketing (Greige fabric), Marketing (finished fabric /
bags) and Advertising and Sales Promotion. Under each section, Assistant Managers,
Marketing Executives, Sales Executives and Sales are there to assist him
Kitex markets its processed products like lungies, dhothies, bed sheets and mulls
etc… mainly through dealers. Almost all Kitex products are available at the dealer
shops. The products are transported to the dealers by deliver vans. Sales Executives
take orders of different items from the dealers once in a month
The company is having 1000’s dealers spread all over Kerala. In Greige market,
garment manufactures all 54rrffover India use various textile sorts manufactured by
the company. The company is selling their Greige fabrics as such to various garment
exporters to Mumbai, Bangalore, Delhi, Chennai, Calcutta, Ahmadabad etc… 75 % of
Marketing manager is the one who decides the marketing strategies for every
major decision, which effects marketing. But while making some strategic and
important decisions, approval of the Managing Director is required
1 Marketing Policy
This company has a strategic marketing policy. The company mainly targets
its customers and promotional activities are based on the above aspects. The company
doesn’t entertain any middle man. They deal directly with their dealers. The company
is following a hierarchical channel of distribution.
Company
Dealers
Consumers
2. Marketing Function
Kitex has a dealer’s network of more than 2500 dealers spread all over Kerala. The
sales of customer goods are concentrated on Kerala, Tamilnadu, and Karnataka. In
addition the company has direct outlets in Kerala and Tamilnadu. Dealership is
allotted only after assessing the credit worthiness, efficiency, and the products are
delivered through the van of the company either at the dealers goes down or at the
dealer’s show room. The company is selling their Greige fabrics as such to various
garment exporters to Mumbai, Bangalore, Delhi, Chennai, Calcutta etc. 75 % of the
3. Marketing Strategies
The marketing department is one of the efficient and effective departments in Kitex.
This department is always vigilant about its environment and very conscious about the
market potential, major competitor’s strategies, weaknesses etc. Maintaining the
efficiency and effectiveness the top management appointed a General Manager for
marketing department. The present GM (marketing) is an experienced management
professional.
In the case of all major companies, the margin is very high when they sell their
products to dealers. However, in the case of Kitex Ltd the margin is comparatively
low. The major problems of competitor’s products are poor quality, poor color dyeing
etc. Compared to other products, most customers choose Kitex brand because of its
high quality despite of it’s a bit high pricing.
Kitex products achieved the maximum market share in the period if festivals like
Onam, Christmas, Ramzan and Vishu. In normal case, profit margins of the products
are 15% to 20%.In the case of technical competence Kitex introduced new automatic
waving suzion looms, which are imported from Switzerland. The only competitor
having this type of technology is Janson. The quality, usage and brand image of Kitex
products in the market is very high.
Marketing consist of buyers of different in one or more aspects. They may differ in
their wants, purchasing power and geographical location, buying attitudes and buying
practices. Any one of the variables can be used to segment a market. The market
segmentation procedure of Kitex mainly focuses on survey.
The marketing manager conducts the survey process. The staff of R&D department is
responsible for it. It includes informal interview, with focus group of consumers to
gain insight in to their motivation, attitude and behavior using their findings, the
researcher prepares a formal questionnaire which is administered to sample of
All Sales Executives are directed to report to the Assistant Managers (sales)
every day. The Assistant Manager and the Marketing Manager are in constant touch
with all Sales Executives who are in the field. All Sales Executives are expected to
submit the Daily Sales Report (DSR) on all Mondays. On all Mondays there is a
meeting of all personnel in Marketing Department preceded over by the General
Manager. In this meeting all the activities and achievements of the departments are
discussed, new plans and strategies to increase sales are formulated and other issues
connected with marketing are discussed.
Show Rooms
The company has showroom sales in addition to sales to its authorized dealers
and franchisees. There are about 20 show rooms speeded all over the major towns in
Kerala.
Customers
The companies customers are average and above average income earners.
Agriculturalists constitute a large portion of the customers
a. Prestige pricing
b. Penetration pricing
c. Price skimming
d. Price lining
e. Dual pricing
Channels of Distribution
Producer Consumer
Price is one of the important elements of marketing mix which has bearing as a
company and its corporate. A well formulated pricing policy provides guidelines to
the marketing manager to enroll appropriate pricing decision. The company follows
skim pricing. The company’s products are premium priced.
Kitex Ltd follows stabilized pricing policy. The company has maintained stable price
for a long period. Price of the product depends upon the price of the yarn. The
reputation of the firm has helped to maintain growth in demand and hence requires
lesser investment in advertisement and promotion.
3.5.Place Mix
The unit of Kitex ltd is located in Kizhakkambalam, Aluva. The company uses their
own distribution channel for supply. The orders were taken by the agents and
according to the order supply will be done on the time suggested by the dealer. The
company also sells through their own factory outlets.
Kitex mainly uses advertisement to promote its products. The basic function of
advertisement is to influence and motivate people to buy products. Various
advertisement agencies are called up and given brief idea about what to advertise and
the agencies prepare a pre-demonstration. After submitting the copy of the same to the
company the advertisement manager, marketing manager, general manager marketing
and general manager direct analyze there and select the best among them and entrust
www.annaaluminium.in
Idea research
Screening analysis
Product development
Market testing
Commercialization
Introduction
Growth
Maturity
Decline
Prestige pricing
Skimming pricing
Penetration pricing
Price lining
Dual pricing
General Manager
Manager
Manager Manager (Processed
(Advertisement &
Fabrics)
Sales Promotion)
Kitex Ltd has a good HR Department and it maintains good relations with the
employees. This helped the company to achieve tremendous growth. All the
employees’ related activities are managed by this department.
The company employees over 800 workers and does not have any trade union
problems. The workers and management sit across the table and negotiate their
demands and rights. The company has an efficient administrative department which
carried out the several functions.
1. Functions
b. Recruitment
Recruitment is a process of searching for and obtaining applicants for jobs from
among whom the right candidate can be selected. Recruitment process is done after
the job analysis and job design which specifies the taste and duties of job and
In Kitex Ltd, the personnel and administration department have a clear cut
recruitment planning. For this they give advertisement in newspaper and other
medias. After collecting all application, department sorts these application and call up
the right candidate for the interview. This process comprises of 5 interrelated stages.
They are:
i. Planning
ii. Strategy Development
iii. Searching
iv. Screening
v. Evaluation and control
In Kitex Ltd, internal recruitment also takes place. This includes present employees,
employee referrals, formal employees and former applicants. For the recruitment of
office staff and managerial personnel, external sources like advertisement in
newspapers, employees weekly etc are used. Other sources are advertisement in
company website, employee references and resumes of the candidates which the
company passes. While selecting the weaver trainees and helpers, qualification along
with sufficient experience in the industry is also required. They can directly appear for
interview. Sometimes selection order is on the basis of the recommendation from the
known person. For skilled jobs like fitter, electrician, instrument technician, jobber
etc. Information is passed through advertisement. For this, experience in respective
field is good advantage.
c. Interview And Selection
d. Selection Procedure
Employees are given proper training and development after they have been
recruited, selected and induced. The company gives training to develop and increase
skills for performing a specific job for each trainee. The company also assures
education through companies own community college to increase general knowledge
and to understand total environment.
f. Performance Appraisal
g. Employee Remuneration
EPF, ESI, Medic-Claim insurance and maternity benefit also provided for
employees
j. Leave Rules
Earned leave is calculated at one leave per 20 days and it will be less than15
days per year. In addition to casual leave, 16 annual holidays
k. Shifts
Company has its own ambulance for emergency use for both workers and
public medical facility in the organization is also good
Water coolers are installed in the company where ever necessary for the
employees. This company is very cautious about the health of their employees who
faithfully work for their company. Employees strictly agreed that drinking water
provided by the organization is very good.
b. Annual Bonds
The company pays annual bonds to its employees based on the company’s
performance in the previous year. 8.33% to20% of the profit is given as bonus every
year.
c. Canteen
The company has separate canteen for male and female employees. For
drinking water, coolers are also installed in the company wherever necessary.
d. Gratuity
Kitex Ltd maintains a gratuity scheme for its employees who have completed 5 years
of experience including training period.
e. Provident Fund
The company contributes 12.5% in the employee P.F scheme.
a. Attendance Allowance
b. Uniform Allowance
c. Children’s education allowance
d. Free tea and coffee for office staff
e. Funeral expenses on the death of family members of the employees
f. Saving schemes for employees
g. Stands as guarantee for the employees to buy vehicles and house holder on
hire purchase
h. Leave- Earned leave for 15days is granted to employees. Maternity leave of
12weeks is granted to the female employees
o. Hostel
In Kitex Ltd, organization provides separate hostel facilities for the ladies and
gents. It includes canteen, accommodation, and entertainment facility. For the purpose
of administration of ladies hostel, organization has appointed a hostel warden and two
assistant warden and hostel staff. In every weekend the P&A manager or personnel
officer visits and check the facilities and function of the hostel. Also the department
conducts performance appraisal and annual day celebration for the employees.
p. Security Department
For the security and discipline of Kitex Ltd, the organization provides a security
department under the P & A Department. This includes a security officer and staff.
The main function of the security officer is to check the baggage and carriers coming
into the organization and the products delivered from the packing section. The
security department marks in the register the quantity of the product, place, time etc.
q. Trade Unionism
There are companies which are non- unionized. Kitex Ltd is such a company. In
Kerala we can see a lot of trade unions and problems created by them. In this case this
is great privilege for the company as a union free company. This is maintained in
Kitex through good employee relation.
r. Industrial Relation
s. Promotion
t. Transfer
Transfer involves a change in the job (accompanied by the change in the place
of the job) of an employee without change in responsibilities or remuneration
u. HRD Services
HRD activity is undertakes in an integrated manner. It is one of the several
organizational process evolved to cope with the changing environment and to
maintain the organization at its best. The focus is on the overall development of a
personality rather control. Their responsibility starts right from recruiting the right
person at right place at the right time till the retirement. It also includes training and
development, provision for good working conditions up to retirement plans.
a. Competency Building
This is usually done by three ways like, improving the knowledge of employees
and creating the right attitude in the mind of them. For this they will be given training
and development programs.
b. Culture Building
c. Motivation Building
Enhancing the motivation of employees and thus enabling the organization to
The employees other than the office and plant workers come under the piece
rate system. 80 % of the workers are under the system in which the payment is made
according to the quality produced on monthly basis. Salary is paid along with
payment slip which contains the details of the pay. A copy of the pay slip is signed by
the employee. When he recollects the salary, it will be filled on this department
e. Standing Orders
f. Fringe benefits
a. Sorting
i. Segregate required, usable, rework able and absolute items
ii. Dispose of unwanted items
b. Systemizing
i. Use labels, colors, codes for easy identification
ii. Use index for files, records, drawings etc…to facilitate
c. Shining
i. Inspect and clean the supply lines, warehouse, scrap yards and gardens
ii. Identify the root cause of loud noise vibration heat buildup in
equipment and take medical action
d. Standardizing
i. Develop standards
ii. Establish checking procedures
iii. Care visual controls
e. Self-disciplines
i. Develop action plan for maintain the set standards
ii. Conduct self-audit
General
Manager
Manager(P Manager(Adm)
ersonnel)
Securi
Welfare Front Time Sten ty
Ofcer Ofce Ofcer ogra Chief
Executive pher
Security
Ofce Ofce Asset Guards
Asst.
Constructio
n Workers
5PURCHASE DEPARTMENT
The Purchase department plays a very important role in the company and it has its
effect on every vital factor concerning the manufacture, quality, cost efficiency, and
prompt delivery of goods to customers. Its function is to procure materials, supplies,
services, machines, and tools favorable terms consistent with maintaining the desired
standard of quality. Purchasing is the important function of materials management as
the moment an order is placed for materials a substantial part of the companies
finance is committed which effects cash flow position of the company.
1. Manufacturing capacity.
2. Reliability of suppliers.
5. Price quoted.
6. Terms of payment
Materials Purchased
the following are the major items of materials purchased by the company.
3. Loom Spares.
The company is having a centralized system of purchases .almost all purchases are
managed by the purchases department and controlled by the top management.
Purchase officer assist the purchase manager. They co-ordinate the entire purchase
activities. In the case of local purchases or minor items, which is frequently require, it
is the responsibility of purchase officer to ensure timely procurement of materials.
The purchase department purchases the materials as per the purchase requisitions
issued by the stores when the items of materials have reached the re-ordering levels.
Purchasing procedure
Adhesives, spare parts, electrical items, lubricants, tools, office stationery packing
materials, etc.. are the responsibility of the stores department .functioning of the stores
department is controlled /administered by the store’s manager. Materials storage is
planned by the store’s manager with the help of the purchase/production department.
yarn and packing materials are stored in the production department go down and
packing section respectively, due to lack of sufficient space in the store and to
facilitate easy handling both the items .but the stores department controls the issue of
both these items.
When particular item of raw material spare parts or tools are required for production,
the supervisor of the concerned section of the production department issues a material
requisition. on receipt of the materials requisition note or material indent, the store’s
manager sees whether the item demanded in stock in the stores. If the required item is
sorted in the stores, it is issued to the concerned department or section and the
acknowledgement for the same is obtained and field in the stores. If the particular
item or material is not available with the stores or the same has re-ordering level, the
stores department informs the purchase department and issuing purchase requisition.
The quantity, quality and other specification of the item issued are recorded in
the issue are recorded in the store ledger control account, prepared and maintained by
The company has a materials control system, which ensures that right quality of
materials is available in the right quality at the right time and right place with the right
amount of investment. it is a comprehensive frame work for the accounting and
control of materials court designed with the objective of maintaining materials
suppliers at a level so as to ensure uninterrupted production, but at the same time
minimizing investment of funds. Because materials constitute such a significant part
of product cost and since this cost is controllable. The company has proper planning,
purchasing, handling and accounting for materials. Two levels of material control trust
in the company—quality control and financial control. Production manager and stores
manager are primarily interested in quality control, because it is their responsibility to
see that there should be no stock out problem. Finance manager, on the other hand is
interested that too much money should not be invested in materials and every rupee
spends on materials should be effective and efficiently utilized.
ABC analysis
The company does not have any stock in public warehouse or with consigns .some
stocks are lying with job workers, which are given to them for processing (bleaching,
dyeing and printing).
Kitex is very much concerned about the quality of the product and some export is
also made .so high quality must be ensured to meet international standards. The
Before purchasing yarn the quality parameters is checked and getting assurance from
the yarn supplier reading to count, strength, twist etc.. for checking or measuring the
above parameters various equipments are available in the company .the company used
to purchase good quality yarn i.e, auto cone ,auto spliced, electronically siro cleaned
combed yarn for making 100% dying standard quality fabric for export garments
The standard quality of greige fabric will depend on the buyers requirement .Even
though the company follow stated quality policy ‘4point system’ from the textile
.Inc ,Newyork .The penalty or demerit points are calculated according to the length
1METHOD OF GRADING
FIRST QUALITY-A piece is graded as ‘first’ if the total penalty point does not exceed
the total yardage of the piece.
SECOND QUALITY-A piece is granted as second if the total penalty point exceed the
total yardage of the piece. In increase of not more than 10%in penalty points will be
allowed on ‘first’ quality goods over 50 inch width.
Total quality management (TQM) journey started at ANNA group in 6 th june 2005. It
The company introduced 5 ‘s’ techniques are a Japanese method . it help the company
to
Improve productivity
Save time
Solve space constraints
Improve morale to employees
5 ‘s’ techniques
They are committed to manufacture and deliver quality fabric and processed fabric as
per customer specification, efficiently in a professional and environment friendly
manner, on time and at the right cost with utmost customer satisfaction ,while driving
to become a world class organization through continual improvement
As a part of the organizations contribution towards the society the kitex ltd provide
6.POLLUTION CONTROL
The company does not have any pollutant products/bye products. The only pollution
may be the cotton particles that may get spread in the loom shed. To prevent this, the
factory is having sufficient humidifier to help the cotton particles settle on the
ground .In the addition to this, the factory and premises are cleaned in a regular basis.
Awards Won
Mr. Jacob, the founder of Kitex Limited has won several awards for his
meritorious contributions in the field of business. To mention a few:
He has won the TRANSWORLD TRADE FARE Gold medal in the year 1975.
He has been awarded the UDYOG PATHRA Award by the then Vice President
of India Sri. B. D .JETTI in the year 1979.
Findings
The company has a good market in both inside and outside the country. Their
customer service is an important one. Kitex Ltd is more concentrating the quality of
Today’s life, people are more concentrating quality and price. Most of the
customer’s belonging to middle class family. Majority of the people living in our
country are from middle income group. In my understanding, my major findings are
Suggestions
8. CONCLUSION
The visit was conducted at Kitex Ltd, Kizhakkambalam, Aluva. The data with
regarded to the visit report collected from the Kitex helps to understand the process of
production of textiles. Each department in Kitex was visited by me and I came to
know that various processes are controlled and monitored under skilled supervision
and hardworking workers.
The visit has given information about the manufacturing process, different
product; organizational structure of the company, departmental functions and gives a
good knowledge about the market position of the company. The co- operation and
interaction extended by the employees and management of Kitex have made it
possible for the detailed understanding.
Company Profile.
Company Manuals.
Websites
www.textileindustry.com
www.annaaluminium.com
www.kitexltd.com