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KERALA LAKSHMI MILLS

INDUSTRY PROFILE Cotton is the most widely produced textile fabric today. It is believed that India was the first country to manufacture cotton. Among the finds at Mohenjodaro are a few scarps of cotton sticking to the side of a silver vase. This at least shows that cotton must have been used in India as far back as the 2nd millennium BC. Historically painted and printed cotton cloths are known to have been sold in Egypt and some parts of Europe long before the time of Alexander. (300BC). Cotton is soft fibre, probably the most important and truly a king fibre. The cotton plant is scientifically known as Gossypisum harbasium and it belongs to the family of Malvaceae. There are nearly 20 different species of cotton plants. All these grow in tropical and subtropical regions, and those growing in tropics are perennials while those in temperate regions annuals. The quality of cotton depends upon the whiteness, the purity, the length, the softness and regularity of the fibre. Because of its white colour and economic importance cotton is known as white gold. The main uses of cotton are for the manufacture of apparels, house hold articles and for industrial uses and their relative share is represented as 40% and 20% respectively. This king fibre is vital for the following products as shown by the list of variety of cotton products given in table 1.1.

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Table 1.1 The variety of cotton products Automobile tops Bandages Book-Bindings Canvas Carpets Cheese cloth Cloth-bags Coverlets Curtains Ducks Filter-cloth Fish-nets Friction-tapes Fabrics Furniture covers Hand kerchiefs Hosiery Lace Mosquito-curtains Paper Safety bags Sheeting Shirts Shoe-laces Tapes Terry-cloth Threads Ticking Tobaccos-cloth Toweling Typewriter-ribbons Tyres Umbrella-cloth Wall-coverings Washing cloth yarns

Millions in the world are directly dependent on this king fibre and the vagaries of this king (Fluctuations in prices) wither make or mar millionsmaking them wither rich or poor and generally causing immense ups and downs.

As stated cotton is a king-fibre, but it is an arrogant king. It assumes that its virtues being so great no further skill be exercised. Of course there can be no
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doubt that cotton has enjoyed this unchallenged position, for cotton is a fibre with rugged virtues and unlimited hitherto unseen possibilities. And more qualities are added as research progress further. In recent years, however, cotton had suddenly realized that there are other competitors for the crown. This seems to be a general rising against it and also there are positive and hostile signs of rebellion. In fact, its crown has already tumbled down and part of its empire has already gone. Competitors are proving to be a rather tough problem and very severe headache for this king Many different fibres are competing with this king-fibre and among these are silk and wool which offer competition on the finer side while enough other fibres like linen, hemp, sisal and ramie offer competition on the tougher side. But a more serious competition comes from man-made fibres like rayon (made by processing a natural substance and then reforming it ) and more recently from synthetic fibres (made entirely from chemicals produced by man like nylon and terylene. These man-made fibres are made from substances which are negligible in price and therefore their competition is going to prove vital or almost fatal to this king.

THE RISE OF THE TEXTILE INDUSTRY

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Thousands of years ago,

man lived in caves and spend his life

hunting. The only cloths he had were the skins of the animals he killed. Then he discovered that he could twist together wool and plant fibres into yarn (that is spin) And interlace the yarn into cloth (that is weave). The word textile is derived from the Latin term textiles for woven fabrics. Thus by textiles we understand those objects which have been prepared by weaving. A far back as 500 BC, Egyptians and other ancient people were weaving fine linen and woolen cloth. In about 3000 BC, the Chinese discovered how to weave beautiful cloth from the delicate threads spun by the silkworm. The Indians began making cotton cloth very soon after wards. Spinning and weaving were done by hand at home until the 1700s. Then the invention of machines such as the spinning jenny, the spinning mule, and the power loom led to the development of textile making as a large-scale industry. People left their homes to spin and weave in factories. The discovery of synthetic dyes and artificial silk in the 1800s and synthetic fibres in the 1900s gave textile manufactures a much wider range of materials to work with. Today, we can buy brightly coloured fabrics which do not crease or shrink, which dry quickly, and which do not need ironing. They may contain fibres made from glass, coal, oil or even rock.

COTTON TEXTILE INDUSTRY IN INDIA


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Indians cotton textile industry occupies a unique position. It accounts for about 7 percent of the gross domestic product, 20 percent of the industrial out put, and over 30 percent of the export earnings. It contributes over Rs. Five. Billion in terms of excise duty. After agriculture, this industry is the second-largest employment provider in the country as its cultivation provides 200 man days/hectare of employment. Around 60 million people earn their livelihood through its cultivation or trade and processing. A considerable number of people also get benefited through its indirect employment. At the time of independence, the textile industry, the largest organized industry in the country, comprised an estimated 2.5 million handloom weavers and 356 mills, with an installed capacity of about 10.3 million spindles, 2,00,000 looms and 7,00,000 workers. After that, the increase in fabric production is mainly because of the availability of major raw materials, such as cotton and man-made fibres. However, the share of cotton gradually declined from 99 percent in the fifties to 69 percent in 1997. As an aftermath of partition of the country, 30 percent of cotton-growing area went of Pakistan. But through concerted efforts, the country could achieve selfsufficiency.

SIGNIFICANT CHANGES
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From the mid-eighties onwards the cotton textile mill segment has been experiencing significant changes caused by market resurgences, mill reconstruction, deregulation and economic reforms In recent years, the market for cotton cloth grew rapidly at the average rate of profit and value added per worker improved. Over the years, the fibre-mix pattern of cloth has also undergone change. In the fifties cloth was mainly cotton-based but now cotton cloth accounts for only to percent of the total production. The remaining 40 percent is contributed by blended and cent percent non-cotton cloth. Of course, there has been an improvement in the quality of fabrics. At present, there are 1824 textile mills in India, out of which 1543 are spinning mills and the remaining 281 composite mills, i.e. in the postindependence period. There has been nearly a five fold increase in the number of cotton / manmade textile mills, within a period of around 50 years.

COTTON AVAILABILITY
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Cotton is the main raw material for the cotton textile industry. Availability and its price level will have a bearing on the performance of the cotton textile industry. Cotton is the most important commercial crop in India, occupying 92.61 lakh hectares of cultivated area. It accounts for 28 percent area in worlds total cotton cultivation area, which is the largest in the world.

COTTON PRODUCTION India is the third largest producer of cotton after china and USA. Cotton is grown over around 22 million acres, with a production of 2.7 million tones a year. Sowing begins in May some areas and picks up in June with the arrival of monsoon. Indias production of cotton was 26, 35,000 tonnes in 1999, which was 14 percent of would production. But yields per hectare here are the lowest among the important cotton producing countries in the world. Currently China, USA, Russia, India, Pakisthan and Brazil are the first six major producers of cotton in the world. When the world cotton production increased by 5.26 percent from 1985 to 14 percent in 1999, in the same period cotton production of cotton increased from 13 percent in 1985 to 14 percent in 1999. PROBLEMS FACED BY INDIAN TEXTILE INDUSTRY

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There is a general belief that India is becoming uncompetitive in manufacturing cost due to a variety of factors arising mainly from increasing input costs. In a fiercely competitive world market, an essential condition for survival is to maintain the cost of manufacturing at an international level. Realizing this disturbing trend, the cotton textiles export promotion council (Texprocil) commissioned a study on benchmarking of costs of production in India vis--vis China, Pakisthan, Indonesia, Bangladesh and Sreelanka by appointing a professional agency, Ms. Gherzi Textile organization, Zurich, Switzerland. The finding of the study reaffirm that India remains uncompetitive to the extent of around 15% when compared to the cost of competing countries.

The key findings of the study indicate the following:1) Highest power cost:- Power is one of the major factor costs as it contributes around 20 percent of the total spinning cost and 10 percent of the production cost of fabrics. India ranks amongst the highest in power and fuel cost. While power cost average 8.87 US cents per kwh in India, it is 3.49US cents in Bangladesh, 3.65 cents in Indonesia, 6.04 cents in China and 6.57 cents in Pakisthan. Similarly the cost of fuel in India is US cents 1.96 per kg of steam. It is 0.78 in Bangladesh, 0.58 in China and 1.41 in Pakisthan.

2) High raw material cost:- As regards the raw material, cotton yield per hectare in India is the lowest of 302 kgs/hectars as compared to the world
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average of 538 kgs/hector. Against this, Chainas yield is 1028 kgs/hectare and Pakisthans 620 kgs/hector. In addition exporting units in these countries also get the entire duties rebated for export production. Indias lower yield and realization, results in higher cost. Percentage of raw material costs is the highest in total cost production here is an example. Cotton cost is 75% of the total cost and therefore the key cost driver. 3) Low Technology:- At the level of technology while India has installed 11,161, shuttle less looms, China has 84,218 and Pakisthan has 16,867. The share of shuttle less looms in India is 0.62 percent while it is 9.96 percent in Bangladesh 9.3 percent in China and 6.15 percent in Pakistan. 4) Export Related Problems:- In India apart from high transaction costs the taxation structure and labour laws are are keeping the clothing exports down. The clothing unit with a turn over of less than 30 lakhs gets tax exemption resulting in fragmentation of units which also affects economics of scale. The other factor which is keeping the clothing exports from India down is high excise duty on man made fibres. It makes blended clothing exports (where China again is doing very well) uncompetitive in the international market.

World trade in clothing is a seasonal business but labour laws in India do not allow units to hire people for a short period. No big garment exporter
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is willing to expand beyond a certain limit. There are even cases where garment manufactures have rejected big deals as after execution of the order, they would be left with a hung work force on their payroll with no work to employ them. Thus with raw materials, power costs, cost of money etc. being the key cost drivers managing them effectively holds the key to becoming cost competitive. If the current scenario continues industry may not be able to maintain its share in the global market.

IMPLICATION FOR FUTURE Seismic shifts are on the way in the textile world. A quota free trading environment regional free trade agreement will dramatically shape the textile landscape in the future. The apparel trade is projected to increase by 28 percent between 2002 and 2010 from 10.4 to 13.3 billion kg per year. Projection for the future growth in the world fibre demand, from 2002 to 2010 are 43 percent for man made fibres, 15 percent for cotton and 10 percent for wool.

COTTON TEXTILE INDUSTRY IN KERALA

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The textile industry in Kerala is the oldest and occupies a key position in the state economic development. The earliest known registered factory is the Malabar Spinning & Weaving Company at Ponnanikara in calicut started in 1884. The second important textile unit set up in the state was Quilon spinning Mills. However some of the mills became sick units and were taken over by National Textiles Corporation. The National Textiles Corporation was incorporated in April 1986, with the main objective of ensuring continued employment to the textile workers who were rendered jobless as a result of closure and also for managing the affairs of the sick textile undertakings taken over by the government. The Kerala State Textile Corporation was incorporated in 1972 with the objective of promoting textile industry and assisting sick mills. In Kerala, there are 31 established textiles and out of that 17 mills are owned by central and state government, and balance are private owned mills. Out of that 7 mills are situated in Thrissur district. Those mills are as follows:(a) Kerala Lakshmi Textiles Ltd (Central government undertaking) (b) Vanaja Textiles Ltd, Kunchikara(under lockout) (c) Sitaram Textiles Ltd (Government undertaking) (d) Rajgopal Textiles Ltd (Private undertaking) (e) Co-Operative Spinning Mills Ltd (Co-Operative) (f) Thanikkudam Bhagavathi Spinning Mills Ltd (under lockout) (g) Alagappa Textiles Ltd.(Central government oundertaking)

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Through Kerala has a number of cotton textile mills, the raw material ie, cotton is not widely cultivated here. It is either obtained from other states or imported from outside India. The climatic conditions of Kerala frequently change, so suitable arrangements are made in the factories to maintain the desired atmospheric condition for the production of yarn. A large number of people get direct employment in the mills and ever a larger number get indirect employment. More than 20,000 workers are working in different cotton textile mills in Kerala. Textile Industries in Kerala also suffers from many problems. As stated before, high power cost, high raw material cost, low technology etc. are all applicable to Textile Mills in Kerala. Another major problem is in terms of modernization. This may be viewed from two aspects (1) Insufficiency of funds for modernization and (2) modernization may involve installation of modern machineries which may bring about a reduction in employment opportunities. Last, but not the least, the labour problems makes Kerala, then least preferred place for any industry.

NATIONAL TEXTILE CORPORATION (NTC)


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National Textile Corporation meant national textiles corporation forced and registered under the companies Act 1956. Textile includes yarn or fabrics made either wholly or partially of cotton, jute, synthetic and artificial fibres. Textiles Company means a company specified in textile undertaking means an undertaking engaged in the manufacturers of textiles to which provisions of the factories act 1968 apply. The NTC was set up in 1968 with objectives of managing the affairs of the sick textile undertaking taken over by the government, it was expected to rehabilitate and modernize these mills and expand them whenever necessary in order to make them economically viable, to begin with only 16 mills under NTC, the number of sick units taken over by the government kept increasing and at present NTC is managing 127 mills with an unauthorized capital of 500 crores and paid up capital of rs. 437.85 crores. In India there are 127 mills under the control of NTC which are divided into subsidiaries.

Table showing subsidiary of National Textiles Corporation

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Sl No 1 2 3 4 5 6 7 8 9

subsidiary

Number of mill Head office

NTC (Andhra Pradesh Karnataka Kerala &Mahi)ltd NTC(Delhi, Punjab&Rajasthan)ltd NTC (Gujarat)ltd NTC(Msdhya Pradesh) ltd NTC(North Maharashtra)ltd NTC(South Maharashtra)ltd NTC (Tamilnadu& Pondichery)ltd NTC(Uttarpradesh)ltd NTC(West Bengal Bihar&Orissa)

16 9 10 10 7 11 17 11 21 12 129

Banglore NewDelhi Ahmadabad Ahmadbad Indore Mumbai Coimbatore Kanpur Kolkata Mumbai

10 Taken over mills of Mumbai total

There are 15 mills under the control of NTC ltd are present. These are as follows.

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1. Minerva mills
2. Alagappa textiles 3. Vijauya mohini mills 4. Netha sopinning mills 5. Cannore spinning 7 weaving mills 6. Nataraj spinning & weaving mills 7. Sree yellamma cotton, woolen &silk mills 8. M.S.I.K mills 9. Adoni cotton mills

10.Kerala Lakshmil mills


11. Ananthpur cotton mills 12. Mysore spinning &weaving mills 13. Parvathy mills 14. Azam jahi mills 15. Thirupathy cotton mills

COMPANY PROFILE KERALA LAKSHMI MILLS

Kerala Lakshmi Mills is a Govt. company under public sector. It is situated at Pullazhi in Thrissur District.
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The mill was promoted by late Shri. Karimuthu Thyagaraja Chettiar and it was Incorporated in 1961. The production commenced in 1963 with an installed capacity of 24000 spindles. The capacity was raised to 30960 spindles in stages subsequently. Due to financial and management problems during the year 1974 the mill was nationalized by Govt. of India under sick textile undertaking Act 1974. The management of the mills vested with National Textile Corporation Ltd, NewDelhi(A govt. of India undertaking) and later with effect from 1-4-1974 it was transferred to its subsidiary company National Textile Corporation (Andra Pradesh,Karnataka,Kerala,and Mahe)limited Banglore. After nationalization consequent to the implementation of

modernization/expansion scheme the installed capacity was raised to 41328 spindles by 1985. Presently the mill is manufacturing blended yarn in the following counts such as 45sPV, 60Spc, and 62 PC. The main raw material polyester fibre is procured from M/S reliance industries ltd, and M/S Grasim Industries ltd Coimbathore. The raw cotton is mainly purchased from Cotton Corporation of India (A Govt. of India undertaking ) since the mill is one of the units of National Textile Corporation(APKK&M)Ltd. Banglore.
LOCATION

The mill is situated at Pullazhi about 5 km from Thrissur town

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CAPACITY

The licensed capacity is 41,520 spindles the installed and commissioned capacity of the mills is 41,328
REGISTERED OFFICE

National Textiles Corporation 9AP,K,K&M

Ltd 3rd floor, Nanjappa

mansion, 29/KH Road, Shanthinagar, Banglore -560027.95


SHARE CAPITAL

The mills share holding of rs.114.46 lakhs is contributed by the subsidiary corporation NTC by way of Equity Share Capital

FINANCIAL POSITION

Now the mill on the way to profit and a long term expansion is in a start. It is about 20 crores as a whole, for the over all expansion all the old machineries will be replaced by the modern and high production type machinery. The
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modernization will be full filled with in one year. After the modernization the cost of production may decrease to 20 to 25% only because of the modern machinery.
ORGANIZATION AND MANAGEMENT

The management and administration of Kerala Lakshmi Mill is vested in NTC Ltd, Banglore which is the head office of the mills. The holding company of the mill and its head office is NTC Ltd, NewDelhi.

ADMINISTRATION

The chief of the organization is the general managers who is a technically qualified person having sound knowledge and valuable experience in running many textile mills. The persons managing the various departments working under him are also personally qualified in their respective fields. Such as accounting labour management, production and engineering. They are senior personnel backed by long years of experience in textile work. The Kerala Lakshmi Mill is a unit of NTC Ltd. It is spinning mill. The company is engaged only in the manufacturer of yarn product. Cotton is the raw material for the production of its desertion as it is under control of NTC Ltd, Banglore, its head office, the regard raw material is supplied by the NTC and the sales are also made by them through its agents or its department keepers, the cotton purchase may be in either branch or bale. One bale contains 18 kg of cotton. The major suppliers of inputs are
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1. Grasim industries kumarapatnam - viscose staple fibre(input name) Karnataka state 2. Reliance industries ltd, J R FOODS ltd Polyester staple fibre Campus thirubhyvanan Pondicheri 3. Indo Rama synthetic (p) Ltd Nagpur - polyester staple

PRODUCT PROFILE

BLENDED YARNS IN THE FOLLOWING COUNTS 45 SPV 60 SPC 62 PC


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Polyester/Viscose Blended Yarns company has the ability to offer polyester, viscose blended yarns in count range from 20s to spc . These are suitable for knitting and weaving purposes. Our variety is available in the following specifications Polyester/Cotton Blended Yarns The company brings to our customers polyester /cotton blended yarns in count range up 20s 80spc in combed and carded in desired blends or 65:35, 52:48. These are also available in reverse blend of 60: 40 in single ply and multifold. This makes them suitable for weaving and knitting purposes. The company can also offer dyed yarns from counts 20s till 30s in single ply and double ply. Viscose High Twist Yarn We provide an array of viscose high twist yarn that ranges from 45spc to 62spc and has varied weaving applications. These yarns have high strength, low moisture retention and are best suitable for most advanced machines that are used in textile industry.

STAPLE FIBRE

The company also produce staple fibre on demand of customers in counts 45Spc TO 80Spc
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MISSION

The mission of Kerala Lakshmi mills are

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KERALA LAKSHMI MILLS 1. To excel in the quality of products and services it to industrial and

other

customers and maximize the profit. the

2. Provide employment opportunities to the people to reduce

gigantic count of unemployment in our country.


3. Increase production capacity and plant capacity. 4. Increase sales.

VISION The vision of Kerala Lakshmi mills are


1.

Its ultimate vision is to produce yarn at a lower cost of production and make it available to the people at lower cost To widen its market network To achieve 100% on time delivery as per customer requirements

2. 3.

OBJECTIVES
1. To produce and market the products economically and in environment

friendly manner.
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KERALA LAKSHMI MILLS 2. To maintain optimum level of efficiency and productivity in all

activities
3. To ensure customer satisfaction ORGANIZATION STRUCTURE 4. To carryout R&D activities for recovery of useful materials and

products from waste products and improve the quality and efficiency of yarns and alsoGENERAL MANAGER workers.
5. To continuously upgrade the quality of human resources of the

company and promote organizational development.


6. To continuously improve the plant and operations safely and initiate SPINNING PERSONNEL MANAGER MANAGER MANAGER 7. To ensure corporative growth and by expansion and diversification 8. To generate a reasonable rate of return on investment. GOALS

activities for achieving total quality management. FINANCE

1. To achieve a minimum compound growth rate on sales turnover


2. To provide facilitates necessary to meet the training need of

managerial staff of mill. DY. SPG


ASM

3.

ASM MANAGE To promote (SQC) research R

STORE KEEPER and development.

HEAD TIME KEEPER

SECURITY OFFICER

4. To provide for the optimum use of technological innovation 5. To ensure optimum use of human resources
CLERK ASS. 6. To enhance INVESTI productivity. SUPERVI SOR GATOR STORE KEEPER SENIOR TIME KEEPER
SECURITY GUARDS

ORGANIZATION STRUCTURE

ESI PF CLERK

SALES IN CHARGE

COST ACCOU NTANT

CASHIE R

CHIEF ACCOU NTANT

PURCHA SE OFFICER

PRODUCT ION CLERK

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CLERKS

CLERK

KERALA LAKSHMI MILLS

PERSONNEL DEPARTMENT

An organization is a human grouping in which work is done for the accomplishment of some special goals or mission. To look after the various
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functions set for the organization, adequate resources in men and materials have to be arranged by individuals, who serves managers or supervisors within the organization. Such people have to make things happen in the achievement of organizational objectives. With out human effort an organization cannot accomplish their objectives. So in order to handle precious human resource Kerala Lakshmi Mill maintaining a personal department. Total strength of the mill is 550 including staff. The main functioning of the mill and maximum efficiency is connected with temporary workers ie gate bathally. Workers can be divided into two categories, skilled workers and unskilled workers. That is
SKILLED WORKERS

Those who engaged in the maintenance wing and electrical section, workshop etc are skilled workers.

UNSKILLED WORKERS

The operating workers who engaged for machine operation are unskilled i.e. in different department, they are engaging after a particular training.
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Regarding the staff strength of the mill staff can be divided into three categories i.e. managerial staff, technical staff and clerical staff.
WORK OF UNIT

The company works on all days in the week. The company works for 24 hours in 3 shifts . the tome of the 3 shifts and general shifts will be as follows General shifts 1st shift 2nd shift 3rd 7 am to 3.30 pm 7 am to 3 pm 3 pm to 11 pm 11 pm to 7 am

The office staff works from Monday to Saturday .


Edward Flippo States:

Personnel Management is the planning, organizing, directing and controlling of the procurement, development, compensation, integration, maintenance and separation of human resources to the end that individual, organizational and societal objectives are accomplishes.

FUNCTIONS

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Recruitment

Recruitment is the main function of the personnel management, which continues with selection and end with the placement of the candidate. Recruiting is the discovering of potential applicants for actual or anticipated organizational vacancies.

KERALA LAKSHMI MILLS Ltd has its own policy for recruitment. It makes use of both internal and external sources for recruiting its personnel. Advertising in newspaper and magazine is the most commonly used method of recruiting. It also recruits from among its existing employees. Whenever any vacancy occurs, somebody from within the organization is upgraded, transferred, promoted or sometimes demoted. Minimum qualification required for selection is 10th standard pass. Recruitment of workers is done on the basis of skill test and physical test. Then an interview and final interview is conducted.

The worker who is selected at first is selected as leaner, after 6 months he is promoted as senior learner. If the work of senior leaner is up to standard he is appointed as the permanent employee of the organization.

In staff recruitment interviews are conducted by heads of respective departments. Then they join as trainee and are required to submit a training report to head of respective department.
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Attendance Procedure

For managerial staff, duty timings are 10 AM to 5 PM about which they are very particular. Even if a staff member is 5 minutes Late in the morning with out any specific reason, he is marked for half-day leave. Workers are doing their work in three shifts of 8 hours each. The staff of each employee goes on changing every month.

Records of all these are maintained by personnel department.

Salaries & Wages

Personnel department makes decision on salaries and wages. These are calculated per month for each employee keeping into consideration the attendance. Employees are paid differently during training period.

Provident fund Scheme

In 1932 P.F. Act has been introduced with a view of providing maintenance to the family of the employee after his retirement or death. This act is applicable at Kerala Lakshmi Mills Ltd. In P.F scheme employee has to contribute 12% of his salary and the management has to contribute to P.F in the same proportion that of the employees share. An employee can take, and he is eligible for taking loans from P.F. During

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the time of his retirement he can family members are eligible for that amount.

ESI Scheme

The main objective of Employees State Insurance Scheme is employee welfare. It comes under the provision of employees state insurance act 1948. employees are benefited, especially in case of accident or death. The employee has to contribute 1.5% of his salary and company 4% ESI to avail the benefit

Grievance Handling Procedure

A grievance is any dissatisfaction whether expressed or not, whether valid or not, arising out of anything connected with the company which an employee thinks, believes of even feels to be unfair. In Kerala Lakshmi Mills Ltd if works have any problem they can immediately report to the supervisor. If it cannot be solved at this level they can directly report to head respective department or to G.M.

Trade Union

A Trade Union is any combination of persons whether temporary or permanent, primarily for the purpose of regulating the relations between workers and employees or between workers & workers for imposing restrictive conditions on the conduct of any trade or business and includes the federation of two or more Trade Unions. In Kerala Lakshmi
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Mills Ltd main trade unions are INTUC and CITU. These trade unions are creating such an environment in the organization, which maintains good relationship between workers & management.

Salaries & Park

It is the personnel department that is dealing with calculating of Salaries & Perk. The various perks which are provided by the company to its employees are: HRA (House Rent Allowance) LTA (Leave Traveling Allowance) Subsidized food & Canteen facilities Employees welfare fund Employees children education allowance Personal accident insurance scheme Loan for house building Employees state insurance (ESI)-6% of salary i.e 1.5% given by employee himself and 4.5% of salary given by organization. Medical reimbursement

Bus facility is arranged to the workers for coming to and going from the company.
Leave Rules

a) Casual Leaves 10 days per year


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More than 3 casual leaves at a time or in a month are not allowed. Casual leaves lapse if not utilized.

b) Sick Leave

Sick leaves can only be obtained after 6 months of recruitment. To avail the benefits under this scheme employees should submit medical certificate.

Advance & Loans

Personnel department takes care of decisions regarding advance & Loans. Advance are given according to the requirements of the customers.

SECURITY DEPARTMENT

This department is responsible for the security of the entire company. Their main duty is at the main gate of the factory premises from where all

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the goods enter or leave the company. The security department is maintaining the following registers

1. Inward register for incoming material

It contains information about date, item. Quantity, place from where it is coming, bill number, medium of transport, vehicle number etc. The concerned person is allowed to enter the factory premises along with material that they are bringing. A stamp is put on the bill that they are brining. Stamp contains information regarding date, entry number etc. then the concerned person goes to the store and from there he goes to the accounts department where the payment is done after confirming the stamp.

2. Outward Register for out going stuff

In this register quantity, date and time of dispatching the material is recorded. The concerned authority checks quantity mentioned in the gate pass.

3. Visitors register

Visitors register is maintained to record the name of the person coming, his purpose of visit, whom he wants to meet. His time of arrival the time at which he is leaving the company etc

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4. Vehicle incoming / outgoing register

This register is maintained to have a record of vehicles coming and going out of the company. Visitors are not allowed to park their vehicles along with the vehicles of employees. Separate arrangements are made for parking the vehicles of both employees and visitors.

5.Guards Duty register

It contains details of daily duties of guards in shift wise.

PRODUCTION DEPARTMENT

Production concepts are one of the oldest concepts in marketing production concept holds that consumers will favor those products that are widely available and at low cost.
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The assumption that consumers are primarily interested in product availability and low price holds in at last two situation. The first is, where the demand for a product exceeds supply in developing then in its fine points, and supply will concentrate on finding ways to increase production. Second situation is where the products with high cost and has to be decreased to expand the market . Texas instrument (IT) is one of the leading U.S. exponents of the Get- out production , cut the price.
MEANING:

Converting Raw Material into finished goods indicates production is a process of carrying required raw materials to shape into required finished products. Production management is a branch of management which is related to the production function Production is concerned with the conversion of inputs (raw material , machinery , information, man power and other factors of production) into output(semi- finished and finished goods and service ) with the help of certain processes (planning , scheduling and controlling etc)
Definition

According to Edwin . S. Buffa production management deals with the decision making related to production process , so that the resulting goods

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CLERK

KERALA LAKSHMI MILLS

and services are produced according to specification in amounts and by the schedule demand and at minimum cost. In early stages the stress was on controlling the labour costs because labour cost was the major element of the total cost of production Earlier periods there was no mechanization of production system like the one they have nows. It was too old tradition compared to this new millennium. The process of mechanization was slowly improved step by step.
FUNCTIONS OF PRODUCTION MANAGER

The various functions of production manager in the company are: Production Planning Quality control Inventory control Work Measurement Production Control Method analysis Plant layout Material handling Other functions

DETAILS OF RAW MATERIAL

1. Type of raw material


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There are three kinds of raw materials used by the organization. They are as follows a) cotton b) Polyester staple fibre(psf+cotton) c) Viscose staple fibre (vsf+cotton) 2. Quantity and price of raw materials The quantity of raw materials is based on the bales. The bales of above three different raw materials are three different quantities and prices they are as follows. Name Cotton Polyester Quantity per bale 170 kg 380 kgs 466 kgs Price Rs 46 to 56 Rs 70

Staple fibre Viscos staple 250 kgs and 252 kgs Rs 74

2. Raw material consumption per day mill a) cotton b)psf c)vsf - 10 bales - 12 bales - 3 bales

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NUMBER OF MACHINES

1. mixing 2. blow room 3. carding 4. Drawing 5. Simplex 6 ring frame 7. winding 8. packing

- no machine -2 - 50 -10 -13 -96 -12 - no machine

PRODUCTION PROCESS

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MIXING

BLOW ROOM

CARDING

DRAWING

SIMPLEX

SPINNING

WINDING

PACKAGING

PRODUCTION PROCESS

MIXING
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Mixing is the process of combing different varieties of cotton in order to prepare the desired quantity and to produce the yarn of expected quality at a expected price. Cotton is of different quality and variety as it is purchased from different states. Mixing is done in order to bring uniformity in the quality of raw cotton and humidity etc. proportion of different varieties cotton to be mixed is decided in order to produce the desired count. After hand mixing bale feeding is done. Cotton is passed through different process to cleaning it the process of opening and clearing is known as blow room process.
BLOW ROOM

It is one of the primary activities of the production process. Here cotton is brought down to in proper cotton. There are five hating points in the blow room. The imparities in which cotton are made loose and they are rolled in sheets of 40 meters each a4- meter roll is called a ball or lops. They are transferred to the carding department.

CARDING

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In this process parallelization, cleaning and drafting is done . this is a process of individualization, which means that material is separated from fiber to fiber and the resultant product is called silver, which is used in next process. There is further removal of water about 5% of the lap weight. Hence the carding can be considered as the most important process of cleaning section.

DRAWING

In this process the uniformity of silver is increased. Hence the eight carded silver is converted into silver. This is a common process for both carded yarn and combined yarn. Blending parallelization and drafting of the carded/combined silver is carried out in this stage. To maintain the court constant the length of the resulting silver is increased using drafting in which the delivery rollers rotate faster than the previous rollers. This will result in the extension of silver. In the process the combined or carded silver is converted to draws from silver

SIMPLEX
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Silver from the flame re generally to coarse in lank number for immediate presentation to the spinning frame for drafting and twisting in to yarn. Therefore the silver is subjected to one or more drafting process before being erected to the spinning frame. But any reduction in the lank of silver would make it so weak and difficult for handling . hence a certain amount of twist or inserted and wounded bobbins for further processing. The output of this process is known as fly frame, rowing frames and speeders.
SPINNING

In this process, rowing yarn is given adequate twist using ring frame in order to suit to the next operation. The number of machines in this process is 114 the machines work continuously and automatically for the length of time needed to produce a full bobbin of yarn after which these bobbins are removed and the machine is set to make another set of bobbins. The capacity of the mills expressed the term of number of spindles. The capacity of the mill is limited to 49,532 spindles.

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WINDING PROCESS

The yarn produced from the spinning process is wounded on a cone by using winding machine. The tests are done in cone winding stage. The spinning process are repeated along with winding and rewinding breakage study the output of the process is the corn yarn

PACKING

The output of the production process is in the form of cone yarn by corn winding and hank yarn by reeling. It is packed in bale or board which contains 180 kg. 120 yarns is equaled to one lea and 7 leas are equalized to one hank. The production is of various counts. First of all counting by spinning manager is done then it is packed. There are checked and packed by supervisors on behalf of spinning manager.

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PROCESS OF MANUFACTURE 1. COTTON

Cotton bales are opened and mined in blow room. The mining is processed through blow room to clean the cotton and converted in laps

The laps is processed in carding to remove short fibres, to clean the cotton laps further and also to re use the lap to card silver form

The card silver is processed in drawing for paralleling the fibres and to get an even silver. The drawing silver is processed through simplex machine and made into roving the required twist is also important in the roving

The roving obtained from simplex is fed on to ring frame when the desired count is obtained after giving required draft and importing necessary twist required getting sufficient strength

The yarn obtained as above on the form of cops is fact to cone winding machine to obtain around 1.25 kg. weight in the form of cones. The cones are packed in HDPE bags to get on net weight of 50 kgs each.
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2.POLYESTER COTTON BLEND

Here the process is silver from carding section are mined and processed from blow room to cone winding section just like cotton to get the blend proportion of 80:20 in the final yarn and packed in HDPE bags of kgs each

2. POLYESTER VISCOSE

The required proportions of polyester 55% and viscose fibre 45% are mixing with a separate tin for identification. The rest of the processing is one just like that of cotton yard and packed into HDPE bags each net

3.STAPLE FIBRE

Like cotton this is processed expect a mixing stage where anti static agent is also avoided

QUALITY CONTROL

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Quality control is the most important department and its proper functioning is very important for the unit to maintain high standards of quality because the fabric passes through a number of machines where it may get defective. It takes care of following factors:

1. Shrinkage:

Actually, before staring dyeing, it is calculated that how much shrinkage in the fabric is expected. For this 10 gm fabric is first measured and then is send for dyeing and finishing and after that its length, breadth is again measured. The difference in these two measures is known as shrinkage. Shrinkage up to 8% is allowed. 2. Washing fastness: For drying to be good quality, it is very important that it should have good washing fastness. 3. Dying Luster: It is seen most of time that the fabric losses its luster after sometimes. It is job of quality control department to check that drying luster is of good quality. 4. Soda Patches: While dyeing due to sodas addition, strains of soda occur on the fabric. It is important to remove these strains before passing the fabric to finishing department by using various chemicals.
5. Flap defect or Tailing:

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It is responsible for uneven dyeing where in more colour is absorbed near flaps. 6. Streaks: This defect causes colour strains of dye in the fabric near the folds. 7. Oil Stains Stains are caused accidentally on the fabric while working on particular machine or during the transfer of fabric between machines.

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FINANCIAL DEPARTMENT

In the modern business society finance functions are drawing increasingly more and more attention of all those who are responsible for running financial administration. There is always a problem with every organization for managing it expanding and ambitious plans with financial resources. The financial management has therefore been assigned the task of planning and controlling the long and the short term financial needs of the firm Definition: Finance management is defined as simply the task of providing funds needed by the enterprises on the terms that are most favorable to it keeping in view its objectives. According to the F.W.Paish may fall in this category. According to him, In modern money using economy finance may be defined as the provision of money at the time it is wanted.

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NATURE AND SCOPE OF FINANCIAL MANAGEMENT.

Nature of financial management refers to its functions its, scope of objectives. The scope and coverage of the financial management have gone fundamental changes. In the early years of its evaluation it was regarded as a branch of economics relating to the raise of funds. Financial management has we take it today is that managerial activity. This is concerned with the planning and controlling of the firms financial recourses as separate activity or discipline. It is of reason origin. The finance in the modern business world is the life blood of the business economy. We can not imagine a business without finance because it is central point of all business activities. The resource including financial resources of every organization, as economist admit, are always scares and therefore, require proper planning and control in order to achieve the best out of funds available

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Main applications
1. Payroll system 2. Processing of input from payroll department and payroll calculation 3. Banks advise statement preparation 4. Preparation of over time hours statement and man hour statement 5. Preparation of earning and deduction summaries 6. Monthly non managerial increment processing 7. Automatic payroll journal generation for payroll accounting 8. Pension computation 9. Estate information report 10. Preparation of half yearly and yearly statement of pension details 11. Insurance scheme 12. Generating gratuity data for actuarial 13. Yearly performance incentive computation for mill staff 14. Contract employee 15. Monthly and half yearly statement 16. Provident fund application 17. Loan request processing 18. Members balance statement preparation 19. Monthly contribution statement preparation 20. Pf annual ledger preparation

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KERALA LAKSHMI MILLS METHOD OF ACCOUNTING 1. Preparation of monthly journal, ledger and trial balance 2. Preparation of half yearly consolidation of ledger 3. Link schedule preparation 4. Profit and loss preparation 5. Balance sheet preparation

ASSET ACCOUNTING 1. Account the asset and calculate the depreciation for the year 2. Process transfer of shares 3. Preparing proxy form for AGM 4. Issue of dividend, warrant etc

The finance department is broadly classified into internal audit and finance and accounts. Under the internal audit section, there is a technical audit and another, which is headed by auditor. Under the finance and accounts section, there is a five section. The sections are sales in charge, cost accountant, cashier, chief accountant and purchase officer

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SYSTEM OF ACCOUNTING Computerization is going on the mill. A little bit earlier it was very difficult to keep and maintain records and files . now computerized accounting is going to introduce in the mill
AUDITING SYSTEM

The mill conducts 4 types of auditing Internal audit conducted by NTC Banglore Statutory Audit conducted by chattered accountant Auditing by AGs office (Govt. of India) Central excise audit

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KERALA LAKSHMI MILLS SALES PATTERN AND CLEARANCE OF FINISHED GOODS OF KERALA LAKSHMI MILLS, THRISSUR

For the sales of yarn, depot keepers are appointed at yarn centers at bhiwandi, ahemadbad , etc, by NTC(APKK&M) LTD. (Head Office). The yarn fination committee at HO . will fix the yarn price (net) for different count of yarn for a week period and offers are given to depot keepers for their acceptance. After obtaining sales acceptance orders from depot keepers, HO will issue sales confirmation orders to different depots as per their requirement(quantity-no.of bags). As per the above confirmation (order), the mill will dispatch yarn bags to NTC godown at the destination and in the name of the concerned Depot keepers.

All the time of delivery (clearance goods) of the consignments, the mill will prepare The central excise invoices based on the above net yarn price confirmed in the confirmation letter. For arriving the assessable value /rate, sales tax, central duty and textile committee cess at the specified rate will be deducted from the net rate and central excise duty being worked out/paid.

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The mill will also obtain depot invoices from depot keepers as per the consignment wise central invoice wise and as per the net price confirmed in the sales confirmation order in which goods were delivered. Depot keepers of the company The company sell their product of yarn to depot keepers in a large quantity. The main depot keepers of the company are

Sanjay vanijaya Mumbai Sangitha traders Mumbai(yarn cloth merchants and commission agents) Excel enterprises Sha enter prices

the vat rate of the company is 4% and commission is 1.5%

TAX SECTION

there is a particular department responsible for tax accounting under the finance department. This department is concerned with the accounting of taxes in the following ways

SALES TAX
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CST(out of kerala) KGST (VAT) SERVICE TAX

- 3% -4% -2.3%

EDUCATION CESS -2% of service tax No Exercise duty

INCOME TAX I. T

-1.03%

Monthly remittance of tax

CREDITORS PAYMENT SECTION

Sales of yarn is made as far as possible against cash/DD. However when credit becomes inevitable due to market/ seasonal requirement s, credit up to 30 days from the date of supply is available to dealer against acceptable of security/selective credit for all products. The credit periods are decided by management to meet contingencies.

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CASH SECTION

Cash section includes a cashier, junior clerks, senior clerks and petty cashier. Petty cashier is responsible for recording petty expenses and it is under impressed system. Cash keeping cash book, day book and inwards and outwards book

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MARKETING
Definition

In the words of Philip Kotler, Marketing is the human activity directed at satisfying needs and wants through an exchange process

Since 1980 Kotlers definition has become longer. It is as follows:

Marketing is social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others
Marketing concept

Marketing concept may be defined as a customer oriental philosophy that is implemented and integrated throughout on organization to serve customers better than competitors and achieve specified goals. It means the philosophy belief or attitude of the management of affirm which guides its marketing efforts. The old concept of the marketing was simply selling goods. But the modern concept is not confined to selling only. It takes into account an interaction of several business activities of customer needs and desire.

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The marketing of our company having market department at Head Office headed by general manager of marketing, marketing informations are collected from various years depot through local representative and analyses by market departments. The company having yarn basis sales committee at head office, headed by on of the full time directed general manager of marketing, gm technical, gm of mills. The committee will review the marketing informations and find the product and prices of different count of yarn. The allotment of yarn bags various depot and office are accepted depot(consignment agents) on weekly basis. Once office received from consignment agents (depot keepers). The mill sending the yarn to the godown in the respective count in the consignment agent selling the yarn to retailers(power loom mainly) at market senders such as Harendi, Melgoan. In Chalkaring etc. after the receipt of the goods the depot keepers remitting the sale proceeds to mills

The channel of distribution is being carried out the consignment agents. The yarn products are developed according to the demand received from the above market senders. The major product of the mills are 60s pc yarn, 62s pc yarn. 45s pv,k 42k,60s k, cotton yarn etc. the mill is having testing lab to looks into the complaints and product qualities.

CHANNELS OF DISTRIBUTION
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Channels of distribution means the path or network or the pipeline through which the products are made available to the consumers, providing time and place utility. In the words of Kotler, Channel is a set of independent organizations involved in the process of making a product or service available for use or consumption
CHANNELS

The marketing is done by the company through identifying agencies . Company

Identifying agencies

wholesalers

retailers

Wholesalers

retailers

customers

Retailers Customers

customers

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MARKETING OF THE COMPANY

Bombay yarn market and local power looms are the market for yarns. The main product are targeted to power looms mainly Birane,Malgoan,Inchalaring etc. Depot keepers are done by the sales of yarn. It is done through agents

To fix the market on trend it is not fined or fluctuates down or up. There has been a bargaining power. The quantity rate is find at ypc meeting. Head Office will approve the rate and to send a fax message to the mill, it is count, rate and quantiy. If the yarn is send to godown, one copy of invoice is send to NTC godown keeper, one copy to concerned party. One to head office and the one is in office file. The concerned depot keeper will contact NTC godown and they will take delivery of the consignment on their behalf. The retail showrooms have also improved their performance . the total turnover of the retail outlets has improved to rs 13.45 crores as against rs 7.06 crore during the previous year. The corporation has also supplied cloth to various government departments and public sector undertaking although

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the orders from DGS&D and other departments were comparatively lower during the year under review .

CUSTOMERS

The customers of the company are follows: 1. cloth manufactures (for yarns) 2. wholesale dealers (for cloth) 3. some retailers(for cloth) 4. garment manufactures(for cloth)
COMPETITION

The main competitions are small spinning units from south India . the company compete with power loom sector and ready made sector. Now there is a trend that most of the people would like to buy readymade dresses, they are not at all interested to buy cloths from tailors shop, because the price of some ready made garments are cheaper than cloths.
COMMISSIONS

Company allows 1.5% as commission to the parties in distribution. The structure of the payment of commission is as follows 1. through deposit(1.55% for yarns) 2. in other state (1.5% for yarns)

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CUSTOMER SERVICE

This is a positive step on the part of the company for the customers. The customer service policy can be summarized as follows: 1. the company satisfies the colour and quantity requirements of the customers 2. If there any defect in the product after sales , the company allows a considerable Amount of discount or return the goods. At present, the product is consumed in the weaving mills of Mumbai . the quality of the yarn supplied by the company is comparable to international standards . however due to fluctuation of the market price , the company is able to realize competitive rates. The textile business is also affected due to import of fabrics as a result of globalization. Further due to monetary and economic recession in south Asian countries . there has been reduction in demand for textile products forcing many exporters to turn to 60s pc yarn, 62 yarn 45 pv, 42k cotton yarn etc So in those area the company try to enter through some sales promotion arrived through consigned agents and their brokers. The brand name of the mill is lakshmi mills packaging is done at hope ovals sacks(bag hopes) which is done by textile industry department.

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SWOT ANALYSIS

Strengths The company has a large pool of highly technically qualified executives. This enables smooth functioning of the company. The company and its employees are strongly committed to quality.

The fully automated production process in the company enables the company to produce quality products in large quantity.

WEAKNESS

The company has large number of temporary employees at lower level. The morale of these employees is very low. The company has not made any serious efforts to motivate the employees.

Since the machines are old, the company is incurring huge expenditure for repairs. The average age of employees is very high. Due to freeze on recruitment the number of younger professionals are less in number.

The trade unions in the company are affiliated to major political party .this results in a lot of political interference and leads to conflicts.

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OPPORTUNITIES

The company can increase the capacity of production using the existing facilities. The demand for cotton fabric is increasing both in national and international market because of increasing demand for cotton garments.
THREATS

Stiff competition form other spinning and weaving mills

Increase in cost of production due to more wastages result in uneasiness among workers in future.

Less basic and recreational facilities provided to the workers may Fluctuation in the prices of raw materials

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SUGGESTIONS

1. The salary and wage system of employees should be increased to improve the satisfaction level of employees. 2. Installation of additional machinery or man power will help to reduce the work load of employees. 3. It is advisable that training and development programme can be given to employees in order to increase their efficiency. 4. Company should provide better job security. This will help it to increase the employee morale. 5. Work force should be utilized to the maximum possible extent to make the company profitable. 6. The machines produce a high level of sound and dust. Hence it is recommended to provide safety equipment to the employees

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CONCLUSION

Kerala Lakshmi mills is a name that stands for quality of textiles. This company is mainly producing cotton silks. Increasing the frequency of advertisement on mass media will improve the products awareness among the public. The commitment and efficiency of employees helped Kerala Lakshmi Mill in capturing highly competitive market. Product quality enables the organization to get the prominent place among the corporate entities.

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BIBLIOGRAPHY
Books 1 2 Philip kotler (2005) Marketing Management Eleventh Edition, Prentice Hall of India private Ltd. Stephen P Robbins (2006) organization Behavior Eleventh Edition, prentice Hall of India private Ltd. Journals 1. KERALA LAKSHMI MILLS Annual Reports 2. KERALA LAKSHMI MILLS Brochures Websites 1. www.ntc.com

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