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REPORT ON INDUSTRIAL TRAINING

At

“AMCO PIPE INDUSTRIES”


Submitted in partial fulfillment of requirements for the

Award of the degree of

BACHELOR OF BUSINESS ADMINISTRATION

Submitted by

ALI AMJATH.T

(REG. NO. 1U12BM002)

Under the guidance of

MRS.R.GEETHA M.COM.,MBA.,M.PHIL.,PGDCA.,

SCHOOL OF BUSINESS MANAGEMENT

RATHNAVEL SUBRAMANIAMCOLLEGE OF ARTS & SCIENCE

(AUTONOMOUS)

(Affiliated to Bharathiar University)

Sulur, Coimbatore- 641 402.

2012 - 2015
CERTIFICATE
CERTIFICATE

This is to certify that the industrial training report done at “AMCO PIPE INDUSTRIES” is a

bonafide record of work done by ALI AMJATH.T(REG.NO. 1U12BM002), and submitted in partial

fulfillment of the requirements for the award of the degree of Bachelor of Business Administration of

the RathnavelSubramaniam College of Arts & Science (Autonomous), under the guidance of

MRS.R.GEETHA M.COM.,MBA.,M.PHIL.,PGDCA.,

Head of the Department Faculty Guide

Viva-Voce examination held on

Internal Examiner External Examiner


DECLARATION
DECLARATION

I hereby declare that the industrial training work done at“AMCO PIPE INDUSTRIES”

submitted to Rathnavel Subramaniam College of Arts and Science (Autonomous), in partial fulfillment

of the requirements for the award of the degree of Bachelor of Business Administration, is a record of

original project work done by me under the guidance of MRS.R.GEETHA

M.COM.,MBA.,M.PHIL.,PGDCA.,

PLACE: SULUR

DATE: ALI AMJATH.T


(Reg No.1U12BMO02)
ACKNOWLEDGMENT
ACKNOWLEDGEMENT

I express my gratitude to MRS.R.GEETHA M.COM.,MBA.,M.PHIL.,PGDCA., for the valuable


guidance, support, encouragement and motivation rendered by her/his throughout this project.

I express my sincere thanks to Dr. M.Sekar M.Com., M.Phil., MBA., PGDCA., Ph.D.,Head of the
Department for his support and advice throughout the project.

I express my sincere thanks to Dr.P.Thirunavukkarasu, M.A., M.Phil., Ph.D.,Dip.Ed., Principal


of RathnavelSubramaniam College of Arts and Science (Autonomous), Sulur for the help and support
rendered.

With great pleasure I express my sincere gratitude to the almighty for his blessings showered
on me. I also express my gratitude to Mr. K.Senthil Ganesh Managing Trustee RVS Educational Trust,
for having given me an opportunity to be a part of Rathnavel Subramaniam College of Arts and Science
(Autonomous) and undertake this project.

I also wish to thank the company management & staffs and other faculty of our department,
for their generosity and support throughout my work.

STUDENT

ALI AMJATH.T
INDEX
INDEX

S.NO TABLE OF CONTENTS PAGE.NO

1. INTRODUCTION 1

2. OBJECTIVES OF THESTUDY 6

3. COMPANY PROFILE 7

4. ORGANIZATION CHART 12

5. FUNCTIONAL DEPARTMENTS

5.1 FINANCE DEPARTMENT 13

5.2 PRODUCTION DEPARTMENT 16

5.3 MARKETING DEPARTMENT 19

5.4 PURCHASE DEPARTMENT 22

5.5 HUMAN RESOURCE DEPARTMENT 25

6. CONCLUSION 29

7. BIBLIOGRAPHY 30
CHAPTER 1

INTRODUCTION
INTRODUCTION
Polyvinyl-Chloride (PVC) is a plastic product which has matchless versatility. It
effectively replaces wood, paper and metal in several applications. As such plastic pipes have
been progressively replacing conventional pipes like G.I., Cast iron, Asbestos cement or stone-
ware for a number of important and uses. Among the various types of plastic pipes which are
commonly used for such applications PVC pipes are the most widely used all over the world on
account of their most favorable balance of properties. PVC pipes are light in weight, rates for
use under pressure, easy to install, low functional loss, low on maintenance cost, and have low
functional loss. Rigid PVC pipes have wide variety of uses in fields like city/town/rural water
supply scheme, spray irrigation, deep tube well schemes and land drainage schemes.

Plastics are also called synthetic resins and are broadly classified into two categories;
thermosetting resins and thermoplastic resins. The thermosetting resins include phenol resin and
melamine resin, which are thermally hardened and never soften again. Thermoplastic resins
include PVC, polyethylene(PE), polystyrene(PS) and polypropylene(PP), which can be softened
again by heating. Usually, thermoplastics are supplied in the form of pelletized material
(compounds) with additives (anti- oxidants, etc.) already blended in it. However, PVC is
supplied in powder form and long term storage is possible since the material is resistant to
oxidizing and degradation. Various additives and pigments are added to PVC during the
processing stage, and then molded and fabricated into PVC products. PVC is better known as
bineel (vinyl) in Japan. This is due to the fact that PVC products, in the form of films or sheets,
were widely used among the public after World War II, and these products were simply called
bineel. When these PVC products that are soft to the touch first landed Japan, where only rigid
thermosetting resins had been known, they left a very strong impression among the population.
This is how bineel mistakenly became a synonym for all soft films including polyethylene
films.
MARKET POTENTIAL
PVC pipes are used for a variety of purposes e.g. water supply schemes, spray irrigation,
deep tube well schemes and land drainage schemes. PVC slotted and corrugated pipes are ideal
systems for drainages of water from land where water logging is inevitable. It is widely used by
various utility services now-a-days too. The major consumer of PVC pipes are the Public Health
Engineering Department (PHED) and Irrigation Departments. Besides these two, it is used by
the Municipal Corporations, Tea estates as well as in N.E. Region. The usage of PVC pipes also
depends upon the size of these pipes too. It is manufactured in different sizes having
innumerable usage value.

The World Bank has recently given top priority in rural water supply in developing and under-
developed countries. India has also received large amounts from World Bank aid for Rural
Water Supply Schemes. However, due to the acute shortage of appliances including pipes this
money could not be utilized to a large extent in our country. Thus PVC/HDPE pipe
manufacturing industry has received higher priority. The requirement of PVC pipes in N.E.
Region is around 10,000 MT out of which the requirement in Assam is more than 50% followed
by Tripura and other five states of N.E. Region. At present there exist around 5 PVC pipes
manufacturing units in the region.

Plant Capacity: The production basis for a typical tiny unit would be as under: Working
hours/day : 8 (1 shift) Working days in a year : 300 Annual Production capacity : 150 MT
PVC Pipes as follows:

Sl.No. Dia of the pipe (mm) Production in length (meter)

Weight per running meter (Kgs.)

Total production (MT)

1. 90 75,000 1,000 75.00 2. 110 53,571 1,415 75.00

292

The unit has been assumed to operate at 70%, 80% and 90% of its installed capacity in the first,
second and third year and onwards of its operation.
THE EARLY HISTORY OF PVC PIPES

“Many of you have expressed a curiosity about the historical development of PVC pipe.
In response to your requests, we provide you with this brief early history of PVC pipes and
fittings.

PVC was discovered as early as1835, but the first definite report of the polymerization o
vinyl chloride did not come until about 35 years later. At that time, the material was to be
reported to be an off-white solid that could be heated to 130 degree C without degradation.

PVC remained laboratory curiosity for many years, probably because of its intractable
nature. The polymer was inert to most chemicals and very tough(strong). These properties
eventually led scientist to consider PVS for applications where durability and toughness were
desirable.

In 1912 the first industrial developments were initiated in Germany. Throughout the
1920’s, attempts were made to use PVC copolymers that easier process than PVC. These early
attempts were only marginally successful.

By 1932, the first tubes made from aPVC copolymer were produced. Nearly three years
later the first PVC pipes were produced using a roll mill and hydraulic extruder.This two steps
process involved melting the PVC powder on a roll mill and rolling the sheet produced up to a
billet. The PVC Could then be processed in a discontinuously working ram extruder to make
pipe. This process was adapted from that used for celluloid and was really ill-fittedfor PVC. As
a result, the products were often oh dubiousquality.

Never –the-less, these earlyPVC pipes were deemed suitable for drinking water supply
piping and waste water piping because of their chemical resistance, lack of taste or odor and
smooth interior surface. From 1936 to 1939 over 400 residences were installed with PVC
drinking water and waste pipelines in central Germany. Various test pipelines of PVC was laid
in Leipzig,

Both the pipelines for chemicals and those for water supply and waste water came upto
expectations, as did the test pipe lines in the cities mentioned above, apart from damage caused
by World War 2. The PVC pipes installed in central Germany are still in use today without any
major problems. In retrospect, these first PVC pipes had been made before their time, before the
material compounds and machines for their manufacture had been perfected. It was not until
1950 that the systematic development ofextrusion technology began. Prior to this, the
manufacture of PVC pipe remained make shift and the use of PVC pies did not become
widespread.

The 1950’s and 1960’s were decades of dramatic advances for PVC pipe and fitting
technology. Encouraged by the results obtained from the primitive pre-war PVC pipelines,
several European and American companies realized the enormous potential for PVC pipes.
These companies pursued the technology, both in formulation and processing. Systematic
research and trials were successful in the development of effective stabilizers, lubricant and
processing aids together with processing machinery engineered specifically for PVC. During
this time period, PVC pipe began competing with traditional products in a number of major
markets, such as: gas distribution; sewer and drainage; water distribution; electrical conduit;
chemical processing; and drain, waste and vent piping.”

(Reprinted with the permission of the UNI-BELL PVC pipe Association)

The Indian pipe industry with presence across all the categories of pipe (steel, cement
and plastic) has become a major exporting hub to the regions like Middle East, US and Europe
due to its location advantage and global accreditations. Also the lower oil and gas pipe line
penetration level in India provides huge opportunity for laying new pipeline infrastructure in the
country, considering its vast geographical area.

The operating environment for the Indian pipe industry was challenging during 2012.
The steel pipe companies expanded their capacities domestically as well as globally during the
last couple of years, which led to excess capacities. Hence, most of the domestic players had to
resort lower margin orders domestically to maintain their order books. The higher input and
finance costs significantly eroded their profitability margins.

CARE research expects the demand for Indian pipe industry to improve from 2014 and
remain healthy over the long term, both on the global as well as domestic fronts, on the back of
increasing demand arising from oil, gas & infrastructure projects. Enhanced global energy
demand arising from increasing population and economic spending in the emerging market will
lead to need for higher exploration and product(E&P) activity, giving boost to the demand for
steel pipe segment. Shale gas discovery is likely to increase demand or pipeline infrastructure
globally.

CARE Researches report on the ‘Indian Pipe Industry’ seeks to answer questions such
as: What is the estimated steel and plastic pipes demand over the next five years? What is the
current level of SAW, ERW, DI and seamless pipe capacities expected capacities? What is the
estimated domestic and global demand for pipes from oil&gas segment? What is the estimated
SAW pipe demand arising from replacement market? What are the key cost components
incurred by Indian pipe companies? What are the price realization trends for major pipe
players?

CARE Research also provide outlook on the pipes industry demand including exports
demand. We have estimated demand within each segment of steel pipes like SAW, Seamless,
DI pipes etc. the report takes in to account several initiatives undertaken by the Indian
Government to provide basic water supply and sanitation also emphasizes on oil and gas sector
expansion plans domestically and globally.
OBJECTIVES OF THE STUDY
OBJECTIVES OF THE STUDY

• To know about the organization strategy.


• To analyze the performance of AMCO PIPE INDUSTRIES.
• To make suitable suggestions based upon the observations of the study.
• To familiarize with the environment of the organization.
• To bridge the gap between theoritical knowledge and practical knowledge.
CHAPTER-2

INDUSTRY PROFILE
INDUSTRY PROFILE

INDIAN PIPE INDUSTRY


India has become the global pipe manufacturing hub especially of SAW pipes primarily
due to its lower cost, high quality and geographical advantages. Additionally, Indian
companieshave acquired global accreditations and certification which make them preferred
suppliers to most of the world’s top oil and gas companies in the MiddleEast, North America
and Europe. CARE Research believes that once the global economy returns to sustained growth,

As per CARE Research, Indian pipe manufacturers will be greatly benefited when
Exploration and Production (E&P) project for oil and gas companies which were previously
stalled or revoked because of the global financial crisis recommence their operations.

CARE Research’sreport on ‘Indian pipe industry’ gives valuable insight of the industry
on global and domestic capacities, demand–supply gap analysis of domestic market, export
market for domestic companies, replacement demand, competition and commentary on top
industry players. We have reported demand break-up within each segment of steel pipes like
SAW,ERW and Seamless pipes.

For SAW pipes, our demand forecasting is derived from several upcoming pipeline
projects expected in India globally coupled with the replacement demand.For ERW pipes,
which are primarily used for City Gas Distribution network, we have calculated our demand
based on several ongoing natural gas pipeline projects in India. For Seamless pipes which are
extensively used for E&P projects; our demand is based on onshore and offshore metreage
drilled. Additionally, we have detailed analysis of PVC and HDPE pipes which have become
preferred material in the construction industry and several government projects. The cost
analysis and pricing information presented in the report will help the reader identify the critical
items and their trends.

The company overview section in the report provides detailed profiles of the top seven
players in the industry, including their financial and operational data and product range. The
report also provides manufacturing process and technical aspects in the industry overview
section.

The report provides CAARE Research’s outlook and challenges on Indian pipe industry
for the next 3-5 years along with adetailed demand break-up within each sub-segment of steel
pipes. CARE Research has developed a robust methodology for forecasting domestic demand. It
takes into account several initiatives taken by the Indian government to provide basic water
supply and sanitation and also emphasis on oil and gas sector which serves s a backbone to the
pipe industry as awhole.
COMPANY PROFILE
COMPANY PROFILE

MANAGING DIRECTOR SRI.M.V.MUHAMMED HAJI

NAME OF THE COMPANY AMCO PIPE INDUSTRIES

ADDRESS AMCO PIPES.


NIRAMARUTHUR (P.O)
TIRUR, MALAPPURAM (DIST)
KERALA, INDIA
678601-PIN

PHONE NUMBER 0494-2424336,2423757

INVESTMENT
▪ IN INITIAL 15,00,000
▪ AT PRESENT 25,00,000

NUMBER OF EMPLOYEES : 50

NUMBER OF SHIFTS 1
AMCO pipes journey began under a strong leadership in 2000 with the idea of pipe
production in needs of the customer. There has been no looking back since then. The company
expanded its activities, innovating new products and improving operations, with every passing
phase.

AMCO pipes, made by a family owned company of India’s Kerala state, this high
quality pipes like PVC pipe. AMCO pipes whole range is processed and packed in all over
Kerala to give you more helpful in agricultural sector. It is the first brand processed and
marketed in Malappuram. We supply our products to the retail sectors in India, Kerala, Malabar.

The industry is situated in Tirur, a place on the bank of river Nila. It is well connected
by roads and railways. The Tirur railway junctionjust a kilometer away from AMCO PIPE
INDUSTRIES. Tiruris the sales centre of foreign goods. Further, there is an skilled labour in
Tirur. The AMCO PIPE INDUSTRIES is one of the leading industries in Malappuram districts.

The company was registered under the name of AMCO PIPE INDUSTRIES (pvt) ltd
Tirur on 22nd April 2000 under the Indian company act 1956. The company is situated in
Niramaruthur, which is the boundary of Tirurmunicipality. sri.M.V. Muhammed haji was the
founder of AMCO PIPE INDUSTRIES.

The present managing director of the company ids Mr.IbrahimBadusha.T.


VISION AND MISION

VISION
‘Focus the organization on the execution of its strategy’

MISSION
‘To deliver water and energy to the world in the most efficient way’

OBJECTIVES OF THE COMPANY


1. Manufacturing agricultural pipes and PVC pipes.
2. To giveemployment to many unemployed people and thereby to make profit.
3. To pay costs, charges and expenses of promotion and establishment of the
company.

Core Values

Respect for people

We respect every employee and strive to provide an interesting and inclusive

environment where they can express their enthusiasm and realize their full potential.

Passion for Growth

Enhance lives of people by providing products which helps in water conservation

Business integrity

We are proud to stand by integrity in all our dealings and follow the highest standards

of business ethics.
CHAPTER-3

ORGANIZATIONAL CHART
ORGANIZATION CHART

Managing Director

General Manager

Purchase Personnel Production Finance Marketing


Manager Manager Manager Manager Manager

Time Keeper Supervisor Assistant

Department
Workers

Purchase
Department Production Stores Quality control Marketing
Department Department Department Department

Accounts Personal Maintenance


Department Department Department
CHAPTER 4

FUNCTIONAL DEPARTMENTS
FINANCE DEPARTMENT
FINANCE DEPARTMENT
The activities expected from a finance department cover a wide range from
basicbookkeeping 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.

The finance department is also responsible for management of the organization’s


cashflow and ensuring there are enough FUNDS available to meet the day to day payments.
This area also encompasses the credit and collections policies for the company’s customers, to
ensure the organization is paid on time, and that there is a payment policy for the company’s
suppliers. In most organizations there will be some form of forecast prepared on a regular basis
to systematically calculate the ongoing cash needs.

Finance department functions


• Salary disbursement with cash transaction
• Co-ordination with bankers
• Day to day cheque handling and payment to suppliers
• Cash voucher
• Payment vouchers
• Preparation of letter of credit
• Calculation of VAT-value added tax

Computation of CST-central sales tax


PREPARATION OF ACCOUNTS
AUDITS

INTERNAL AUDITS-done every year (done by Mr. MANOJ).

Main purpose of prepare accounting statement is to as certain profit and loss during the
specified period and show the financial condition of the business. Accounting is the process of
recording, classifying summarizing and interpreting the financial information about the
activities of a concern. The various account records are useful for a concern to take intelligent
financial decision.

The company maintains various books of accounts for recording financial transaction.
The book maintained by the company are listed below.

1. CASH BOOK

As the name suggest the purpose of this book is to record transaction-involving cash n
day to day basis at the end of every day. The balance is arrived to determine the clearing cash
balance of the day cash receipts and payments are recorded in the cash book.

2. BANK BOOK

The objectives of this book is to record the receipts and payments made payments made
through bank cheques, drafts etc. cash deposited into bank are recorded on the debit side of the
book and payments made by way of cheques and drafts are recorded on the credit state of the
book.

3. SALES REGISTER

A sales register is maintained by the company for recording every day sales to its
customers. This register contains party name, invoice no, date and amount of sales etc.
4. PURCHASE REGISTER

The company also maintains the purchase register for recording both local and interstate
purchase. This register provided the list of suppliers of the company.

5. JOURNAL LEDGER

There are some transactions, which could not be taken to either purchase or sales
register. These types of transactions are recorded in the journal register.

6. OTHER RECORDS MAINTAINED BY THE COMPANY ARE


1. Salary register
2. Labors advance register
3. ESI and PF records
4. Employees welfare expenses
5. Job cards and time input register

STRUCTURE OF FINANCE DEPARTMENT

FINANCE
MANAGER

ACCOUNTS
MANAGER

ASST; ACCOUNTS

CASHIER/BILLING
CLERK
PRODUCTION DEPARTMENT
PRODUCTION DEPARTMENT
Production is process of making inputs into outputs or transformation of rawmaterials
into finished products. The plant work as one shift, the time period has of 8 hours.

Raw Material

The main raw material required compounded PVC resin. Presently both PVC&
Polyethylene Plastics raw materials are indigenously manufactured. Other compounding
materials like Plastisizers, Stabilizers, Lubricants and fillers are also manufactured in India. No
problem is envisaged for procurement of PVC resin and the other required compounding
materials. The raw materials required are as follows:

• PVC resin :150.00MT


• DOP: 6.80 MT
• Stabilizers :3.20 MT
• Processing acids : 1.20 MT
• Colorant:0.70 MT
• Filler: 10.20 MT

Process

The various process steps involved in the manufacture of PVC pipes are as follows:

• Extrusion
• Sizing
• Traction
• Cutting
▪ Extrusion

PVC uncompounded resin, unlike some other thermoplastics is not suitable for direct
processing and end instability, it is necessary to mix additives to the PVC resin. Following are
some of the addittives which are generally used for the manufacture of rigid pipes.

Plasticizers: The common plasticizer in use is DOP,DIOP,DBP,DOA, DEP, Reoplast, Paraplex


etc..

Stabilizers: The common stabilizers are lead, barium, cadmium, tip, stearate etc..

Lubricants:widely used lubricants are Buty-Sterate, Glycerol Moni-Sterate, and Exposidised


Monoester of oleic acid, stearic acid etc..

Fillers: Fillers are also used for producing special quality product (e.g. calcined clay is used to
improve the electrical properties of cable compounds).

▪ Sizing:

The pipes coming out from the extruder is cooled in the sizing operation. There are
basically two types of sizing is used for manufacturing of pipes. They are:

❖ Pressure sizing
❖ Vacuum sizing
▪ Traction:

The last operation is needed is cutting. There are basically two cutting techniques for rigid
PVC pipes viz. manual and automatic. The pipes are then tented for ISI marks and are ready for
Dispatching.

Machinery:

The major equipment required for the unit are as follows:

• Windsor Model TSC-80 Rigid pipe plant for pipes 90 and 110 mm OD -1no.
• High speed mixer capacity 100 kgs with controls and cooling arrangement-1no.
• Heavy duty scrap grinder- 1no/.
• Over head water tank-1no.
• Air compressor 2HP- 1no.
• Pipe storage racks – 10 nos.

STRUCTURE OF PRODUCTION DEPARTMENT

PRODUCTION
MANAGER

ASST: QUALITY
PRODUCTION CONTROLL
MANAGER MANAGER

ASST:MANAG
EMPLOYEES
ER

WORKES WORKERS
MARKETING DEPARTMENT
MARKETING DEPARTMENT
Marketing means working with markets (i.e.) trying to potential exchanges for the
purchase of satisfying human needs and wants. Marketing may be defined as human activity
directed at satisfying needs and wants through exchange processes. Marketing in its broad
meaning includes the policy, techniques and methods necessary for selling and distribution.
Without marketing function, goods and services cannot be sold.

Marketing department is only income generating department, all other departments


generate payment or cost, it does not mean all other departments are burden to firm, every
generating of satisfied customer etc.

AMCO PIPES marketed their products it include PVC PIPES,sales manager is the head of the
department. The brand name of “AMCO PIPES” reduce their marketing effort.AMCo pipes
following direct and indirect sale to customer.

Marketing is the total commercial and support activities of any enterprises to effect sales
of company and products or services.

While fixing the rate of yarn, the marketing manager considers the following factors.

❖ The nature and extent of demand


❖ The long and short term costs of manufacturing and selling the product
❖ The competitive reaction
❖ The sales promotion strategies
❖ The channels of distribution
❖ Profit margin

In addition to that the following charges are:

❖ Lorry Freight
❖ Godown rent
❖ Insurance
❖ Brokerage
❖ Bank charges
❖ Basic excise duty
❖ Additional excise duty

Objectives of marketing department

• Increasing purchase
• Creation of goodwill
• Cost reduction
• Price stability
• Profit through customer satisfaction
• Ensure growth
• Providing wide chose of goods
• Improving quality of life
• Retaining customers
• Achieving certain market share
• Reaching a certain level of sale
• Increasing sailing existing market
• Market development

Sale promotion media of AMCO PIPES


• Local television advertisement
• Local newspaper advertisement
• Outdoor advertisement
• Field executives
• Magazines advertisement

Sale promotion in AMCO PIPES


Sales promotion is a key element of marketing department. Its importance and
objectives are same than marketing department given below.

• Immediate purchase
• To influence the customer for buying the product
• Make the efforts of whole sellers and sales personal more effective
• To attract new customer
• To meet competition
• To popularize the product so as to stimulate the demand

DISTRIBUTION CHANNEL

COMPANY

AGENT

CUSTOMERS RETAILER

CUSTOMERS

AGENT
Agent plays important role in the sale. First of all the target is fixed by taking into
account the current trend and previous year performance. Thus this target is divided between the
agent by studying expected business in different areas.
PURCHASE DEPARTMENT
PURCHASE DEPARTMENT
The purchase department occupies a vital and unique position in the organization of an
industrial concern, because purchase is one of the main functions in the success of modern
manufacturing concern.

IMPORTANCE OF PURCHASING

Sales depend upon the purchase, under stiff competition, products will have to be sold at
the prevailing market price, and controlling cost will maximum the profit. Business profit
depends upon turnover of investment. The purchasing department get materials of good quality
and delivery schedules are to be maintained. The purchasing department comes in close contact
with many other companies and the general market in course of discharging its function.

DUTIES OF PURCHASE DEPARTMENT


❖ To purchase department is responsible for all types of product purchasing and contacts
with outside suppliers.
❖ Selecting sources of supply for raw material and services to be maintained for this
purpose, going through supplier’s advertisements, pricelists and quotations.
❖ To prepare purchasing budget.
❖ To place and follow up a purchase orders.
❖ Maintain records of all purchases.
❖ To check whether it the material has been purchased at right time and at economical
rates.
❖ To market sure through inspection that kind of material has been purchased.

PURCHASE OF RAW MATERIALS

The raw materials which are purchased by the company are polished yarn, cotton and fibre.

• The purchase is purely based on demand and price condition authorised


from head office.
• The company purchase their demanded raw materials only from the
certain agencies as directed by the head office

• The company doesn’t have any direct dealings and transactions with the
suppliers

• The company, at present purchase their demanded raw materials from


RELAINCE INDUSTRIES

• RELAINCE INDUSTRIES at Madurai and Trichy acts as a real time


agents for this particular company

Being a large scale sector, the company follows the bulk purchase that helps the company to
manufacture maximum outputs without any fluctuations.

DISTRIBUTION CHANNEL

As mentioned, the agencies are the suppliers for the company whereas the
company also purchase their demanded raw materials from the other distributors and dealers
who offer yarn and cotton readily at lower price along with the good quality and credibility.

SUPPLIERS

➢ As discussed, the company have no direct supplies. The company satisfies its purchase
through the concerned agents.
➢ The company also tends to practice the CHAIN MANAGEMENT that indirectly
denotes the distribution channel from the suppliers to the company via agencies
PURCHASE
DISTRIBUTION
FROM
SUPPLIERS AMONG
SELECTIVE
AGENTS
AGENTS

QUANTITY AND QUALITY


▪ The company doesn’t adopt any perfect methodology for the quantity of inputs.
▪ The company is very sure about the outputs.
▪ The maximum quantity of output produced per day is 10,000 kg.
▪ The company also expects certain measures of quality in every aspect of
functions of the company i.e. from purchase to the sale.

QUALITY POLICY

We, at Lakshmi mills are committed to manufacture quality products to meet


customer needs and satisfaction. We shall enhance the customer satisfaction through
the continual improvement by excelling in our manufacturing activities through
training and development of all employees with the continuous implementation of
ISO 9001 of monitory management system effectively.
HUMAN RESOURCE DEPARTMENT
HUMAN RESOURCE DEPARTMENT
HUMAN RESOURSE DEPARTMENT FUNCTIONS
• Recruitment
• Attendance
• Payroll
• Statutory requirement
• Grievance
• Performance of management
AMCO pipe industries group of companies recognize the importance and contribution of
its human resource for its growth and companies have been practicing methods and practices for
human resource development. With utmost respect to human values, company serve its human
resource with integrity, through avariety using appropriate training, motivation in of service by
techniques and employee welfare activities.
This departments mission is to enable a cultural within the organization to attract and
retain the right personal and direct their efforts in the achievements of individual and
organizational goals. And it also provide help and support to employees, motivate and retain
staff, strive to create a distinguished climate for the individual growth of the employees.
Personnel Management may be defined as the planning organizing, directing and
controlling of the procurement, development, compensation, integration and maintenance of
people for the purpose of contributing to the organizational goals.
HR DEPT. DUTIES
• Human resource managing
• Human resource planning
• Man power planning
• Selection
• Motivating
• Training
• Performance appraisal
• Promotion and transfer
• Compensation
• Grievance handling
• HR record keeping
MOTIVATION
AMCO pipes motivate staff through providing monitory and non-monitory benefits and
give annually best employee award each department.
Monitory and non-monitory benefits
• Salary
• Bonus
• DA

SELECTION OF EMPLOYEES
Based on the applicants experience and age limit they are selected.

TOTAL MAN POWER STRENGTH

The current manpower strength of the mill is as follows:


Total No.of persons working - 50 Members
Total No.of staffs - 5 Members
(Including Fitters, supervisors and other staffs)
No.of shifts - 1
WORKING HOURS
I shift - 9.00 to 5.00
Per shift working members is 16+4 (Supervisors, Fitters, Mastry, and Electrician).

WAGE SYSTEM
Time wage
MAINTAINING OF RECORDS
❖ Control of workers
❖ Prepare wages and salary records
❖ Maintain leave record
❖ Maintain stationary records
❖ Journal and ledger

OTHER FUNCTIONS
❖ Health measures
❖ Welfare measures
❖ Safety measures

LIST OF HOLIDAYS
The company holidays includes the national and general holidays. They are listed below.

NATIONAL HOLIDAYS
❖ Republic day
❖ May day
❖ Independence day
❖ Gandhi jayanthi

GENERAL HOLIDAYS
❖ Pongal holidays
❖ Deepavali
❖ Christmas
❖ Ayuthapooja

RETIREMENT
The company gives retirements to the labourswho have completed 58 years of age.
CHAPTER 5

SUGGESTIONS
SUGGESTIONS

• AMCO PIPE industry can improve its efficiency by bring down the cost of production to
certain extent. There should be a reduction in the amount invested in the stock.
• The training indicates promotional activities are influence sale, so company introduces
new and modern and innovative promotional activities like “deal of the day” “deal of the
week” “deal of the month”.
• To give discount on existing customer in an new purchase that is makes more purchase
and attract existing customers.
CONCLUSION
CONCLUSION

The Industrial Training Research at AMCO PIPES, Tirurfor a period of 15 days is very
useful: Where I could able to gain lots of information about fabrics industry.
I came to know that the performance of the organization goes on at increasing rate
because of the efficient management and effective decision-making. They have not faced any
problem in the sales area because the quality of yarn produced is very high. The management
maintains good relationship with workers and makes them happy and satisfied by means of
monetary and other benefits.
The factory is using machines for quality control. So that they can lay for their
production more efficiently and increase their sales. Lastly, I would like to conclude that factory
is performing efficiently because of good administration and sound policies followed.
BIBLIOGRAPHY
BIBLIOGRAPHY

1. Mr.Rao, “Performance Appraisal Theory and Practice”, vikas


publishing house, 1985
2. Philip Kotler, “Marketing Management”, custom edition, prenticehall Inc,

2002

3. Prasanna Chandra, “Financial Management – Theory and Practice ”,

Tata McGraw- Hill New Delhi, (1994)

4. Rao vsp, “Human Resource Management” , Excel Books, 2000.

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