1

CHAPTER 1
INTRODUCTION















2
INTRODUCTION

Organizational study is a direct investigation about the functions and
activities carried out in an organization. It gives a clear insight into real life
situation. Such studies enable others to know about the functions and the
importance of each department in an organization.
Organization refers to the structure of relation among positions and jobs
which are building up for the realization of the common objectives it prescribe
the relationship with various positions and activities in the business which is
help by persons. In other words organization is a harmonious adjustment of
some common purpose. Organization involves the dividing and grouping to the
work to be done in an enterprise.
To know more about the organization, its functions and activities, an
organization study of RUBCO CO-OPERATIVE LTD was done.
This short time study helps to get an overview about production
department, finance department, marketing department and H.R. Department of
Rubco.





3









CHAPTER II
RESEARCH METHODOLOGY











4
RESEARCH METHODOLOGY
The study is about the major functioning of RUBCO rubberized coir
mattress division; Pampady. The study is mainly based on the details collected
from each department. Each and every activities of the company is studied very
carefully with the data available. This study is very beneficial to the future
managers as they put into the real life situations. A study on all the departments
can help to improve the process and there by overall improvements in the
companys performance can be made.
2.1 Objectives of study
The organization study was done on behalf of the fulfillment of MBA degree.
The organization study was conducted for the following purpose.
i. To have an understanding of the profile of Rubco Mattress Division and
its various activities
ii. To acquire knowledge regarding the functional as well as the managerial
aspects of the company
iii. To find out problems if any and to put forward suggestions
iv. To get an idea of the organization and its various departments
v. To get familiarize with various activities of the company
vi. To get the feel of actual working environment and to get acquainted with
it
vii. To learn and maintain a good relationship with the organization



5

2.2 Reason for selecting the company

For conducting an organization study that would be beneficial, the
company selected should have large number of departments and also should be
one that is engaged in active performance in production. Service and marketing,
and higher growing opportunity.
The prime consideration in selecting Rubco RCM LTD for the study is its
tremendous growth during the past years. It has all the major departments
including finance, marketing, purchase, production and planning, maintenance,
quality control, human resource and exports.
2.3 Limitations of the study
The period available for the study was limited. A detailed study of all the
functions in the organization couldnt be completed in the time frame.
Busy schedule of the officers and employees prevented lengthy
discussion.
Reluctance from the organization to give all information required for the
study.
Information collected from workers and employees are only true to
certain extent.




6

2.4 Data collection method
The study includes both primary and secondary data
1. Primary data
Data were collected from various sources like formal and informal
interview and discussion with mangers and other officials at various levels.
They are the actual data collected by the researcher through the following
source.
Formal and informal interviews managers
Direct observations
Interview with the employees
2. Secondary data
Secondary data were collected from published and unpublished sources
like official records, organizational manuals etc. these are the secondary source
of data which are obtained indirectly. The researcher has taken information
from the following ways.
Official records of RUBCO
Organizational manuals
Annual reports
Websites
Magazines



7










CHAPTER III
INDUSTRY PROFILE & COMPANY PROFILE










8
INDUSTRY PROFILE

Rubberized coir mattress segment is a high competitive. This segment is
having more than 50 % of the market share in the mattress industry. Rubberized
coir mattress industry has more than 45 odd brands and over 200 different
models. The major players in the industry are Kurl on, Duroflex, Sulfex,
Rubco and Sunidra.

The birth of rubberized Coir Industry is quite amusing and interesting. Prior to
the year 1960 people hardly had any idea of this novel and high utility product.
In those days the world famous car manufactures, M.S. Volks Wagon of
Germany, were using horse hair as cushion filling material for their car seats. As
their production increased from 100 cars per day to 300 cars per day, there was
dearth of this raw material. This necessitated a suitable alternative product for
rubberization and which would suit to their specifications, after various
alternative tried like sisal fiber, jute fiber, the coir fiber was decidedly found to
be the best. This was the beginning of Rubberized coir industry. The Indian
rubberized Coir Industry is nearly five decades old. It was in 1964 that M/s/
Bharat Motors of Chennai established its manufacturing unit. Many other units
came up during sixties itself.




9
After nearly one decade of its introduction. Government of India recognized
Rubberized coir mattress as a healthy and hygienic product. Slowly many state
Governments recognized rubberized coir as Wealth from waste and advocated
the use of rubberized coir mattress in various hospitals, health clinics etc.

OTHER TYPES OF MATTRESS ARE
Cotton Mattress
Form Mattress
Spring Mattress

COTTON MATTRESS

The cotton mattress mainly targets lower income group. This mattress is
priced very low. The cotton mattress industry has a market share of 50%.

FORM MATTRESS
Form mattress segment comes at next place after rubberized coir mattress
industry. This industry having a market share of 9 to 10% this industry mainly
target consumer belonging to upper income and upper middle income group.
The major players in form industry are MM form, sleep well.




10
SPRING MATTRESS
The industry target consumers belonging to the upper income group. The
major players in spring industry are spring well, Sealy Kurl on etc.

GROWTH DURING LAST 4 DECADES
From a handful of manufactures, during early 60s this product got some
market recognition in early 70s. In the next 3 decades over one hundred
manufactures have entered rubberized coir field. Today rubberized coir products
are increasingly used in many industries notably in transport industry like
railways and buses, packaging industry (Pharmaceuticals, heavy engineering,
electronic etc), hospitals theatres and auditorium. The basic raw material for
Rubberized Coir Industry is the brown coir fiber and the natural latex rubber.
Over the last decade, the brown coir sector has registered a tremendous growth.

WORLD SCENARIO
There are mainly three major players in the industry and are as follows

a) Sealy Corporation

Sealy Corporation is the major mattress manufacturer and it got the name
from the place it started, Sealy, Texas.





11
b) King Coil

Founded in 1988, Koil has over a century of experience crafting high
quality, affordable bedding both in United States and throughout the world.

C) SIMMONS BEDDING COMPANY

Simmon Bedding Company is a major manufacture of mattress and is one
of the oldest companies in the United States, for over 152 years.

INDIAN SCENARIO

The rubberized coir mattress market of India is estimated to be highly
fragmented with little brand loyalty. The major players in the rubberized coir
mattress industry in India are.

a) Kurlon Limited

Kurlon Limited, a Manipal group company came into existence in 1962.
Kurlon Limited is the brand leader in the mattress industry and has acquired
major market share in the branded mattress segment.

b) Duroflex

Duroflex is the largest exporter of sleep and comfort products from India
started its operations in 1963. Now the company has got three manufacturing
units for rubberized coir mattress.




12
c) Century Mattress

Century fiber plates Pvt. Ltd. Started its rubberized coir plant at Hyderabad
in 1988 under the brand name CENTURY. Century is the first mattress
manufacturer with ISO 9001 -2000 series and ISI Certification.

STATE SCENARIO

In India, the coir industry has developed very well especially in Kerala
where they produce Retted Fiber. Green husks of coconut are immersed in the
salty back waters for 10 to 12 months. The main players in rubberized coir
mattress industry are

a) Duroflex

Duroflex is the leading mattress manufacturer in India which started its
operations in 1963. Duroflex is the largest exporter of sleep and comfort
products from India

b) Eastern Sunidra

Eastern sunidra Mattresses pvt. Ltd.. Is a part of Keralas renowned
business conglomerate, the Eastern Group of Companies.

C) RUBCO
Kerala State Rubber Co-operative Limited (Rubco) was set up in the
year 1997. Rubco was incepted with prime objective of effectively utilizing the
abundant rubber resource of Kerala.


13
The Indian coir industry has a diversified structure, reflective of the board
ranges of raw materials and value added products involved. The industry
provides at least part time employment to an estimated 40,000 persons. At the
beginning of the value chain are approximately 300 fibers milers with usually
less than 10 employees and an estimated 500 supplies of coir pith, or dust. Their
output is either purchased for direct export or undergoes manufacturing for
twine, mats and brushes, rubberized coir mattresses and pots, geo textiles and
pith products. Products, which are technically more demanding or better, suited
for mass production, such as high end twine, brushes, rubberized coir and
erosion control blankets are predominantly produced in larger facilities,
employing more persons.
Now in rubberized coir mattress industry the competition is more and more, the
demand of the product is in growth stage. So only the quality mattress industry
can survive in the competitive world.










14









COMPANY PROFILE













15

COMPANY PROFILE

Kerala state rubber Co-operative limited (RUBCO), is situated in Kannur;
Kerala State, India, is promoted by the provisional Government of Kerala to
promote Rubber based industries in this part of the country.
Today India enjoys 4
th
position in the production of natural Rubber (NR)
in the world. Among the total production, small state of Kerala contributes 92%.
So rubber has become the backbone of our economy. Due to the bad impact of
globalization the overall market of rubber fell down Kerala, that time instability
in price of rubber was one of the major problem that farmers facing in the
market. The farmers were no getting fair price for their effort. But this problem
has come to an end since 1997, because The Kerala State Rubber Co-operative
Ltd. (RUBCO) came into existence in this year on the purpose of exploring the
infinite possibilities of rubber. Since its inception in 1997, RUBCO has traveled
long. It has entered into various Rubber and Rubber wood based industries like
Hawai Chappel with reputed Malaysian Technology, Cycle Tyres and Tubes,
Rubberized Coir Mattress, conventional and procured tread rubber, block
Rubber (SMR), Pale Latex Crepe (PLC), casual shoes etc.





16

VISION AND MISSION
For last half decade with a vision to become a global leader in the
production of Natural rubber products and innovative product development,
RUBCO adopts the best and latest process in the production.

RUBCO means Rubber and Rubber means RUBCO

Today, from a single unit company, RUBCO has grown into a Rs. 280
Crore Conglomerate with well diversified operations. Divisions operating under
Rubco Group are involved in a wide range of business such as footwear,
furniture, cycle Tyre and Tube, Rubberized Coir Mattress and Natural Rubber.
Rubco is the largest Exporter of Natural Rubber to all leading Rubber based
companies in India. Rubco is led by a professional management team and
supported by a committed workforce. Rubco is now poised to enter a high
growth phase with several initiatives that will take the Group on path Expansion
and Diversification.

OBJECTIVE SOCIAL

To ensure a steady market with remunerative price to rubber growers for
their natural rubber
Welfare of rubber grower particularly of small and marginal segment


17
OBJECTIVE COMMERCIAL

To Promote, establish, maintain and manage the business related to
manufacture and sale of tyres, both radial and bias for Heavy Vehicles,
LCV, Passenger Cars and other four wheelers.
Tyres for three wheelers and two wheelers
Purchase and sale of rubber in any form such as Latex, Sheets, Crumbs
and Laces
Manufacturing of Rubber Wood based on products

GROWTH AND DEVELOPMENT OF ORGANIZATION
Kerala State Rubber Co-operative Ltd (RUBCO) has in a short span,
redefined the way the cooperative sector functions and set the pace for the co-
operative Movement in Kerala today. Rubco was set up in the year 1997 with
the objective of effectively utilizing the abundantly available rubber resources
of Kerala. Today, from a single unit company, Rubco has grown in top an
Rs.280 crore conglomerate with well diversified operations and market presence
extending beyond the boundaries of Kerala. Rubco manufactures and markets
variety of products from footwear to furniture, from Cycle tyre tube and tyres to
mattress.
Rubco has also entered into technological alliances with world leader in
the respective field; sourcing from them state of art technology. Substantial
investments in modern manufacturing facilities, coupled with well organized
marketing activities, have seen Rubcos products earn a reputation for quality
and significant market shares.

18

Rubco is largest exporter of natural rubber in the country today. Even in
the domestic market, Rubco is a major supplier of natural rubber to all leading
Tyre combines in India. Rubco is also a Government intervention agency
towards market stabilization and has been serving the farming community
directly and indirectly to get reasonable price, arresting drastic fall in price
during peak production periods; natural rubber trading has being a blend of
social obligation and commercial practicability led by a professional
management team and ably supported by a committed workforce, Rubco is now
poised to enter a high growth phase, with several new initiatives that will take
the group on a path of expansion and diversification rubber holds immense
potential, Rubco hopes to create opportunities and bring Industrial progress to a
land that accounts for 92% of the countrys natural rubber production.

ADMINISTRATION AND MANAGEMENT

The Administration and management of RUBCo vests in the Board of
Directors consisting of fifteen members as follows:

Nine directors elected by A class shareholders from among themselves
Two directors elected by B class shareholders from among themselves.
Four ex officio directors viz
Register of cooperative societies, Kerala
Chairman of the Indian Rubber Board
President, Kerala State Cooperative Bank Ltd.
Managing Director, Rubco

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CHAIRMAN: Mr. E. Narayan
He is a veteran Co-operator and is holding various positions as Chairman in
Central and state level cooperative organization.

MANAGING DIRECTOR: Mr. Jacob D. Mathew
He has more than 25 years of experience as CEO in corporate sector.

OTHER DIRECTORS
1. Sri. M.V. Koman Nambiar
2. Sri. Panneri Mukundan
3. Sri George Mathew
4. Sri V. N. Vasavan
5. Sri U. Azzez
6. Sri N. Chandran
7. Sri K. Manoharan
8. Sri V.P. Saseendran
9. Sri K.S. Gopi
10. Smt Satyabhama K.N.
11. Smi Jacob D. Mathew
12. The Chairman Rubber Board, Kottayam
13. The Registrar of Cooperative societies, TVM
14. The President,Kerala State Cooperative Bank, Trivandrum

PROMOTERS

Government of Kerala along with Indian Rubber Board and some district
and primary Cooperative Banks in Kerala are the promoters of RUBCO.
Government of Kerala holds the majority of the shares. The top share holder are
Government of Kerala, Rubber Board, Kottayam District Cooperative

20

Bank,Ernakulam District Cooperative Bank, Palakkad District
Cooperative Bank, Kannur District Cooperative Bank, Thrissur District
Cooperative Bank, Trivandrum District Cooperative Bank and Kollam District
Cooperative Bank.

MILTESTIONS OF RUBCO

9
th
June 1997 Registered RUBCO, Commenced
operations in October in the year
same year
15
th
October 1997 Commenced procurement of rubber
17
th
February 1998 Commenced procurement of rubber
from farmers through depots
28
th
May 1998 Foundation stone laid for foot wear
manufacturing factory and thread
rubber manufacturing unit at
Koothparambu, Vaiuavelicham
Industrial Centre.
June 1998 Exported rubber to Singapore &
Nepal
July 1998 RUBCo takes over the reins of
Sreekandapuram Latex (Pvt). Ltd

11
th
February 1999 Entred in to an important agreement
on technological collaboration for
manufactures of ultra light weight
footwear with H-tech sectors
2
nd
March 1999 Foundation stone laid for P.L.C.
factory in Sreekandapuram

21

23
rd
June 1999 Signed significant technical
collaboration agreement with long
Huat Berhad of Malaysia for the
processing of wood and furniture
that
13
th
August 1999 Rubco Footwear hit the market
19
th
October 1999 Foundation Stone laid for the rubber
wood processing and furnituring
unit
30
th
October 1999 Foundation stone laid for
Rubberized coir foam Factory at
Pampady , Kottayam
9
th
December 1999 Entered into an agreement with M/s
Tog Teik (Pvt) Ltd of Singapore to
Export 15000 Metric tons of rubber
first time from India.
8
th
March 2000 Entered in to a technical
collaboration with Pancarwarna
management and Consulting service.
Malaysia for Manufacture of casual
of shoes.
6
th
May 2000 Foundation stone laid for casual
shoe project

22
1
st
January 2001 Rubco huat wood furniture factory
commenced commercial production






16
th
June 2001 Incorporation of RUBCO tire India
Pvt. Ltd
20
th
April 2002 Started activities of coconut complex
for the production of virgin coconut
oil and ancillary products
6
th
December 2002 Started RUBCO RUFAS Scheme
(collection of natural rubber latex
from farmers)
20
th
December 2002 Expression of interest submitted to
the government of Kerala for setting
unit for the production of rubber
components for automobiles and
with a capital. Outlay of 20 million
USD
23
rd
January 2003 Signed MOU with Coconut Pacific
Pvt. Ltd of Australia for the
production of Coconut Virgin oil

23

PRESENT STATUS OF THE ORGANIZATION

Rubco is a well diversified industrial conglomerate with a strong presence
in the rubber based industrial segment. Rubco was formed with the prime
objective of utilizing abundantly available rubber resources of Kerala. In a short
span of time Rubco has successfully introduced a wide range of fast moving
rubber based products. Today Rubco group of companies has established new
factories of Rubber Footwear, Cycle Tyres & Tubes, Rubberized coir mattress,
processed rubber and rubber molded coir mats.

RUBCO FOOTWEAR DIVISION-Making Impressive Strided
Rubcos footwear division manufactures a range of quality casual rubber
Footwear. The plant employs sophisticated machinery and has production
capacity of 3.6 million pairs annum. The product range includes sturdy regular
and comfy ultra-light (manufactured under the renewed Malaysian technology),
perfect blend, quality raw material and superior manufacturing methods make
the Rubco range second to none. In the short span, Rubco has made its presence
felt in fiercely competitive markets on account of the excellent quality of its
products. This division also manufactures honey comb rubber mats in
fascinating colors.



24

Rubcos footwear range presently comprises of three leading brands Rubco
Hawaii, Rubco Rainbow and Rubco Classic, Rubco Hawaii has durable flexi
strap, soft insoles and power grip technology, offering true value for money,
Rubco Rainbow is a colorful range of ultra light casual footwear with cushioned
insoles and extra soft straps. Rubco classic is a top quality Hawaii that provides
excellent wearing comfort and durability.

RUBCO CYCLE TYPES& TUBE DIVISION- On the Fast Track

Rubco Cycle Types & Tube division has already gone on stream
manufacturing a range of sturdy, technologically superior cycle tyres and tubes
suitable for rough terrains and track. The production facility spread over 25000
sq.ft. Is equipped with modern imported machinery including Taiwan made
CNC mould which imparts better finish to the tyre. The plant has an annual
installed capacity of 3 million tyre and tube. Rubcos range of cycle tyres and
tubes has advanced features such as high non skid depth improved wet-skid
resistance. High tensile copper coated steel bead wires add durability and rim
holding capacity. The entire range of cycle tyres is being exported to the U.K.





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RUBCO HUAT WOODS PVT.LTD- Design on the Future.
A joint venture with Long Huat Group Berhard of Malaysia, a world
leader in rubber wood furniture, this division manufactures a range of elegant
furniture and quality edge-geld panels using the eco-friendly rubber wood.
Rubber wood properly treated and processed, is emerging as the deal substitute
to rain forest wood, as it offers the same strength, durability and finish as the
latter, and also helps preserve the environment. The furniture manufacturing
plant has a processing capacity of 40.000 metric tons per year. The products are
being exported to UK, USA, Japan and many other countries across the globe.
Rub wood, the furniture range, comprise of dining tables and chairs, designer
wardrobes, futons kitchen cabinets and computer and office furniture and is
available in the choice of designs and finish. The edge-geld panels
manufactured using sophisticated finger jointing technology, are easy to saw,
drill, bore on stain and have excellent nail- holding capacity.

RUBCO SREEKANDAPURAM LATEX PVT. LTD- Tapping new
opportunities.

Rubco Sreekandapuram Latex Pvt. Ltd became a part of the Rubco group
when a loss- making unit was taken over by Rubco by acquiring 65% of its
shares. In a short span of time, by sound backroom operations unit was turned
around and is today posting profits. The company manufactures Block Rubber

26

(ISNR) and pale Latex Crepe( PLC).Rubco is in the process of
expanding the scope of operations of this unit in line with market trends .

RUBCO SALES INTERNATIONAL LTD- Crafting Winning strategies
Rubco Sales International (RSIL) is a public Ltd. Company promoted by
Rubco to spearhead the sales and the marketing activities for Rubcos entire
range of product in the domestic and international markets. Within a short span
of its inception, RSIL could effectively develop a deft, competent network
domestically as well as globally and undertaken the successful launch of
Rubcos product. Apart from gathering market information and monitoring the
supply chain system, this division is also responsible for nurturing and
sustaining excellent customer relations.

VIRGIN COCONUT OIL

The project envisages establishment of 100 co- operative coconuts
processing units in kerala. To start with, this will be increased to 200 units
subsequently for the production of coconut oil directly from green coconut nuts
without going through conventional copra or milk route. The process
methodology is commonly known as Direct Micro Expelling (DME)
Technology. The centralized packing unit is at Thalassery in Kannur District.


27

The place is accessible by road and rail from all other parts of the country. The
place is blessed with all infrastructure facilities for setting of such a project.
Coconut oil extracted from fresh coconut kernel by Direct Micro Expelling
Technology is of very high quality and commands a premium price because of
its use as a health product. This is a highly sought after item as a health product
and is used as massage oil and also as baby oil for massaging small kids.
Coconut oil is a much sought after product for edible use in the households and
non-edible use as hair oil and as cosmetic and industrial oil.
The project also proposed to set up a centralized packing cum marketing unit for
Virgin coconut oil manufacturing the cooperative processing units.

FUTURE OF THE ORGANIZATION:
The main future plans and the progressing proposals of Rubco group are:

RUBCO TYRES INDIA(PVT) LIMITED
Rubco is in the process of setting up a project for the manufacture of tyres
and tubes for two and three wheelers, passenger cars, heavy duty trucks and
light commercial vehicles. The ground work is underway and the division will
be launched in the near future. It will have a production capacity of 6 million
tyres and tubes annually.



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Location:
The project will be located in the proposed industrial growth centre being
developed at Valiyavelicham, about 35 Kms from Kannur city.

Capacity and Product Mix:
The plant will have a 2.33 million numbers of radial and bias tyres per
annum which 75 million would be utilized for the truck drivers, 1.5 million for
light type passengers tyre and balance would be for two or three wheelers.

RUBCO CASUAL SHOE PROJECT

Investment: 96 million
Employment:600 persons
Location: Thalassery, Kannur district, Kerala
Capacity: 1.5 million pair per annum. 75% of the production is earmarked for
export.


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RUBCO MATTRESS DIVISION

Rubcos rubberized coir mattress division, at Poothakuzhy
near Pampady, Kottayam which started its operation in 2001, is an ambitious
project realized with an investment of 260 million. The manufacturing plants

among the very few in the country to employ advanced Austrian machinery,
sourced from DOA-Austria a technology leader in rubberizes mattress.
Rubcos rubberized coir mattress division is an ambitious project realized with
an investment of Rs. 280 Millions. The manufacturing plant is among very few
in the country to employ advanced Austrian machinery, sourced from DOA,
Austria.Rubco rubberized coir mattresses are scientifically designed to provide
proper back support without compromising on comfort. By virtue of their
ingenious design and constructing and the unique 3-D technology, Rubco
rubberized mattresses are very comfortable and ensure a healthy and restful
sleep. Rubco rubberized coir mattresses are crafted from the finest materials and
finished to perfection in one of Indias most modern manufacturing plants.The
furnishing section is equipped with most modern computer controlled machines
imported from U.K and U.S.A. Strict quality control is observed at every stage
of production to ensure that Rubco rubberized coir mattress always measure to
the highest quality.


30
A unique of the main sheeting plant is that it facilities
Vertical fiber Orientation, a proceed that result in a deeper penetration of latex
in to the sheet, making it very elastic. This provides the mattress with uniform
density throughout and an extra cushioning effect.
The plant has an annual installed capacity of 4.8 million units, consisting of
mattress and other rubberized coir products.

THE UNIQUE VFO ADVANTAGE

Rubco rubberized coir mattresses are manufactured using the machinery as
well as technology from DOA sheet forming machine has the unique advantage
of producing uniform density vertical oriented fiber sheets. Vertical Fiber
Orientation (VFO) ensures extra cushioning effect and high durability in the
mattresses. Further, considerable sheet thickness and densities varying from
80kgs to 250kgs can be obtained.









31

PRODUCT PROFILE OF RUBCO RCM
DIVISION
Rubco manufactures a wide range of mattresses catering to diverse segments
of the market. The range consists of:
a) HEAVEN
Premium model that provides unmatched sleeping comfort is available in 3
inch and 4inch thickness. Also available in customized dimensions and
thickness for large quantities (100 and above)
b) HEAVEN PLUS
A luxury model that is elegant as well as comfortable, which is available in 5
inch thickness.
c) HI-TECH
A hi- end model with an accent on finish and luxury available in 5 inch
thickness.
d) HITECH PILLOW TOP
Superior quality mattresses finished to world class standard is available in
7 inch thickness.
e) DOSTH
An economy model that offers true value for money is available in 2 and 3
inches.



32

f) SAFAL
A regular mattress that combines comfort and durability is available in 3
and 4 inches
(g) YATHRI
An elegant mattress meant for hotels, Tourist resorts etc. Yathri combines
superior sleeping comforts with perfect back support, enabling a relaxed healthy
sleep. Layer upon layer of rubberized coir and latex enhance the comfort while
soft and elegant quilting adds a luxurious feel for use in hospitals is available in
3 & 4 inch thickness.
h) HEAL
A quality product suitable for use in hospitals. Available in 3 inch and 4 inch
thickness.
i) RELIEF
A special mattress scientifically designed for orthopedic patients.
Available in 5 inch thickness.
(J) 9.30 PM
Economy model. Available in 3 inch and 4 inch thickness.
OTHER PRODUCTS FROM FACTORY
i. Rubberized coir block
ii. Coir block
iii. Cushions
iv. Soft touch pillows

33

ORGANIZATIONAL GOALS AND OBJECTIVES
GOALS
The organizational goal of Rubco RCM division is to make Rubco a
leader in the market of rubberized coir mattress.
OBJECTIVES
1. Maximize the capacity utilization of the existing plant
2. To increase the profitability of the company and to maximize
generation of surplus to enable Rubco to finance its diversified
projects.
3. To execute production on time, in accordance with the market demand
of the product and to make them available to the distributors.
4. To maintain and improve the existing cordial relationship between
employees and management by mutual interactions levels and further
improve efficiency of executives, supervisors to meet future
challenges.
5. To ensure strict quality control and ISI standards of the product to
compete in the global market.
6. To maximize the cost reduction.
7. To introduce new varieties of mattress so as to increase the range of
mattress catering to the diverse segment of the market.



34

PRESENT STATUS OF THE ORGANISATION

RUBCO is a well diversified industrial conglomerate with a strong
presence in the rubber based industrial segment. Rubco was formed with a
prime objective of utilizing abundantly available rubber resource of Kerala. In a
short span of time Rubco has successfully introduced a wide range of fast
moving rubber based products. Today rubco group has factories of rubber
footwear, cycle tyre and tube, rubberized coir mattress, processed rubber and
rubber coir mats.

ORGANISATIONAL STRUCTURE

Organizational structure is the structure of relationship among positions
and job created for the purpose of accomplishing the objectives of the
enterprise. It represents the pattern of relationships among the components of an
organization. They are:
-The form of structure.
-The form of structure.
-The functions to be performed.
-The human aspect



35

The pattern of relationship governs duties and activities of persons who
are dependent upon each other for accomplishing the objectives of the
enterprise. An organization structure should be designed to clarify who is do
what tasks and who is responsible for what results, to remove obstacles caused
by confusion and uncertainty of assignment and to furnish decision making and
communication networks reflecting and supporting enterprise objectives. The
company organization structure is diagrammatically represented by an
organizational chart. The organization chart shows the lines of responsibilities
between various departments of the company.














36









CHAPTER IV
DEPARTMENT PROFILE














37

DEPARTMENTS

Departmentalization is a method of arranging activities to facilitate the
accomplishment of organizational objectives. The organizational process of
determining how activities are to be grouped is called departments. The
departments show the horizontal differentiation in an organization.

The main departments are:

1. Administration cum personal department
2. Finance and accounts department
a. Stores department
b. Purchase department

3. Production department
a. Production (main plant)
b Production (furnishing)
c. Product development
d. Production planning and control
e. Lab and quality department
f. Engineering department
4. Marketing department




38

ADMINISTRATION CUM PERSONNEL DEPARTMENT

Human Resource Management
HRM is the process of acquiring, training, appraising, compensating
employees and attending to their labour relations, health and safety and
fairness Concern. In other words HRM is the people concerned dimension in
management. Since every org is made up of people, acquiring their services,
developing their skills, motivating them to higher level performance and
ensuring that they continue to maintain commitment to the org are essential
to achieve organizational objectives. This is true regardless of the type of the
organizational, government, business education, health recreation and social
action.
HRM refers to a set of programmes, functions and activities designed and
carried out in order to maximize both employees as well as organizational
effectiveness.
The main functions are;
a. Conducting job analysis
b. Planning Labour needs and recruiting job candidates
c. Selecting job candidates
d. Conducting orientation and training programs for new employees.
e. Managing wages and salaries
f. Providing incentives and benefits
g. Appraising the performance
h. Communication with employee9 interviewing, counseling,
discipline)
i. Training and developing managers
j. Building employee commitment

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STRUCTURE OF THE DEPARTMENT
..
Picture(page maker files attached)..
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RESPONSIBILITIES OF HR MANAGER

(a) The HR manager is responsible for the manpower planning,
recruitment, selection, training compensation package,
performance appraisal, maintaining discipline and harmonious
industrial relationship Rubco RCM.

(b) He is responsible for providing advices and guidance / assistance
to the officers and staff working in the unit under the control of
The General Manager in the matters connected with performance
appraisal, discipline, harmonious relation, training, optimum use of
time, achieving the targeted production etc.

(c) HR manager is responsible for obtaining necessary function for the
creation of posts, pay scale and other required sanctions from
managing director / chairman for filling up manpower requirements
from time to time.

(d) HR manager shall be responsible for the proper administration of
the statutory and non statutory welfare programming in the Rubco
rubberized coir mattress division.

40

(e) HR manager shall be responsible for complying with various
labour legislations.

(f) The HR manager is responsible for formulating HR policies and
interpretation of different labour laws.

(g) The HR manager is responsible for preparation of wages and salary
bills and passing it to finance department for disbursement.

(h) The HR manager is responsible for identifying the training needs
of the organization and its employment and prepare training
calendar and arrange various training programmes for the
employees. In its essence HRM is the qualitative improvement of
human being who is considered the most valuable asset of an
organization, the organizational resources and end users of all
products and services. In brief the function of HRM are.
1. Job analysis

Job analysis is the procedure through which a HR manager has to determine
the duties of the position and characteristics of the people to hire for them.
2. Human Resource Planning.
Human resource planning is understood as the process of foresting an
organizations future demand and supply of the right type of people in the
right time at the right place. In other words HRP is the process by which an
organization ensures that it has right number of and the right kind of people
at the right place at the right time, capable of effectively and efficiently.


41

Completing those tasks that will help the organization achieve its overall
objectives.
3. Recruitment:
RUBCO RCM division follows a centralized system of recruitment
programmes and its implementation is done at corporate level. Recruitment is
the process of searching for and obtaining applicants for jobs from among
whom the right people can be selected.

4. Selection
Selection is the process of differentiating between applicants in order to
identify and hire those with a greater likelihood of success in a job. Selection is
concerned with picking the right candidates from a pool of applicants. Selection
is negative in its application as it seeks to eliminate as many unqualified
applicants as possible in order to identify the right candidate. In RUBCO RCM
division selection of employees are done at two levels-workers level and at the
managerial level.

5. Job Description:
Job description is preparing for a number of different purposes in an
organization. The area follows.
To define responsibilities of a job.
To review the organization structure and distribution of duties with the
organization for the job evaluation.
For the foundation of performance appraisal
To provide information about a post to be filled for recruitment/selection
purpose.

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6. Personal Specification:
Personal specification is a set of criteria developed from the job and
organization context which describes the skill and attributes of a job holder.
A personal specification helps to:-
- Provide an objective standard against which candidates can measure. It helps
to avoid purely subjective judgment.
- Personnel specification will help identify training and development plans for
successful candidates. It is most useful to find a candidate for a job who fulfills
all requirements.
Rubco rcm division is conducting interviews in their selection process. The
question and acceptable response are specified in advance and are rated for
appropriateness of content.
8. Orientation and placement.
Orientation, also called as induction, is provide a new employee with the
information he or she needs to perfume comfortably and effectively in the
planned induction programme for the fresh employees about their job, their co
workers and the organization . Thus orientation programme conveys three types
of information.
General information about the daily works routine.
A review of the organization history, founder, objectives,
operations and products or services as well as how the employees
job contributes to the organizational needs.
A detailed presentation of the organization polices, work rules and
employee benefits.

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After the orientation programme, the evaluation of the programme is
conducted by time interview. After giving orientation programme for the
new employees, Rubco rubberized coir mattress division is taking care of the
placement of the employee because when an employee has been hired or
oriented he or she must be placed in his /her first job. Placement is
understood as the process of allocation of people to the job . It is the
assignment or reassignment of an employee to a new or different job.

9 .Training and development
RUBCO RCM DIVISION HR authority is conducting training and
development programe for employee to improve current and future employee
performance by increasing an employees ability to perfume through
learning, usually by changing the employees attitude for increasing his /her
skill and knowledge .The need for training and development is determine by
the employees performance deficiency.

10. Performance appraisal
Performance appraisal is the systematic evaluation of the individual with
respect to his/ her potential for development. Rubco RCM division conducts
performance appraisal once in a year. The method for performance appraisal
is for evaluating performance of employees on rating scale method because
this is the simplest and most popular technique for approving employee
performance . The typical rating scale system consist of several numerical
scale, each representing a job related performance criterion such as
dependability, initiative, output, alternatives, attitudes, cooperation and the
like . Each scale ranges from excellent to poor.

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11.Welfare measures:
Labour welfare is a term which must necessarily be elastic, It has some what
different interpretation from country to country according to the different social
customs, the degree of industrialization and educational level of workers. The
management of Rubco is well aware of the growing necessity of welfare
activities and pursues a policy of improving the facility aimed at total well being
of its workforce . They are:
A. Al employees in the organization are covered under the employee state
insurance (ESI) scheme. No other insurance scheme prevails in this
organization
B. Festival allowances are given to the employee on the occasion of notified
festivals.
C. Annual bonus/ incentives are paid out to the employees as per the
company rules.
D.
12. Relation between employees and management :
The relationship between manager and employee must be handle effectively as
both the employee and the organization are to propose together whether or not
some of the employees rights must be addressed. It is important to develop
Communication and update HR polices and rules so that managers and
employees will know what is expected.





45

13. Trade Union
Employee association constitutes one of the stakeholders relations. These
associations are popularly known as trade union. The trade union that exists.
In RUBCO RCM is RUE (Rubco Employee Union) . There is a cordial
relationship that exist between and union . The union is lead by CITU.
Safety measures in Rubco Mattress Division
Cleanliness and drinking water: The factory and its premises are kept spick and
span. The accumulation of dirt is removed daily. Effective arrangement is made
at suitable points suited for all workers employed there with sufficient supply of
drinking water.
First aid: First aid facilities are provided in the factory for all the employees.
Safety: A well equipped security force is provided for safeguarding everything
inside the factory premises.

FINANCE DEPARTMENT

Financial Management
Financial management, also referred to as corporate finance or managerial
finance ,emerged as a distinct field of study at the turn of 20
th
century. Finance
theory in general, rests on the premise that the goal of financial management
should be to maximize the wealth of shareholders.
Finance Management Department
Finance refers to the application of skills in the manipulation in the use and
control of money. The finance in the modern business world is the life blood of

46

the business economy. We cannot imagine a business without finance because it
is a central point at all business activities.
Financial Function
a. Passing and settlement of all miscellaneous advances.
b. Perform works connected with insurance coverage of fixed asset.
c. Keeping personal life of employees relating to salary computation
and annual increment.
d. Prepare profitability trend reports and wage analysis.
e. Quarterly and yearly financial report preparation.
f. Making banks statements
g. Preparation assisting the coordination at all works connected with
finalization of accounts.
h. Assisting statutory/ Vigilance / auditors from head quarters.
i. Make internal and external purchases.


Capital budgeting
The capital budgeting is done at the being of the year itself. The requirement of
capital will be specified for approval. During the budgeted year, if any further
requirement of capital is faced then a proper justification has to be made . If the
requirement is seen as an important one then approval of the capital is
sanctioned.




47
Cash management
Cash management system is done of the key areas in any business. Apart from
the fact that it is the most liquid asset, cash is the common denominator into
which all current assets can be reduced because other major liquid assets,
receivable and inventory get eventually converted into cash.

Credit control function
A trade credit arises when a company sells on credit and does not received cash
immediately. A company grants credit to protect its sales from the competitors
and to attract potential customers to buy its product at favorable terms, Credit
period allowed is 6 days to 90 days. The collection of credit will be handled by
senior sales officers up to 180 days and it will be handed over to the factory
manager. The company will give the creditors a further of one month, then legal
action will be taken against the person or the company. If the cheque has
bounced or has been dishonoured then the company can sue or take legal action
against the person or the company.
Planning of funds.
Planning of funds is a careful estimate made by the manager about the total
funds required. This is the estimation done by the observation over the physical
activities of the company.
Allocation of funds.
Providing funds to proper place at proper time is also an importance task to be
done by the financial manager. He studies the cash requirement of each
department and then funds are distributed.



48
Recording transactions
Each and every transaction that takes place in the company has to be recorded
properly for the purpose of having better control over the funds optimality. All
the transaction are recorded in journal and posted to the ledgers.
Fixed assets.
Fixed assets from the major part of the working of any company. Depreciation
of fixed assets is charged on diminishing balance method.
Cost control
The cost is controlled either in the acquisition of raw materials or reduction in
operating expenses or both, as there should be limitation in the utilization of
funds. The company will always have a comparison of budgets and actual.
Stock in Stores
Store department is an auxiliary department of the financial department . The
major purpose of this department is to receive raw mate materials from the
suppliers to different departments and there after verify the bill/ invoice to
ensure of incoming materials and to confirm the quality and value with purchase
order.
Inventory management
Management of inventory means an optimum investment in inventories . It
should neither be too high to block the funds unnecessarily nor be low to halt
the production for the wants of materials. The inventory management includes
the following aspects.
Size of inventory maximum level and minimum level.



49
Establishment- timing schedule procedure and lot of size for new
orders.
Ascertaining minimum safety level.
Coordinating sales, production and inventory policies.
Providing proper storage facility.
Arranging the receipts, disbursements and procurement of materials and
developing the form of recording the transaction.
Arranging responsibilities for carrying out inventory control function and
providing the report necessary for supervising the overall activities.

For effective inventory management in a business unit there should be proper
coordination of activities and policies of the purchase, production and sales
department.

Working Capital management.
Working capital management is managing the current assets and current
liabilities of a firm in such a way that a satisfactory level of working capital is
maintained. i.e. it is neither inadequate nor excessive. Working capital
management policies of a firm have a great effect on its profitability, liquidity
and structure wealth.

STORES DEPARTMENT
Stores department is an auxiliary department. It function under accounts officer.




50
STRUCTURE OF STORES DEPARTMENT
Functions of Stores department
1. Receipt of incoming material.
2. Efficient and orderly record keeping of all materials in storage.
3. Storage of material in safe and conventional location
4. Issue of material against written authority
5. Timely intimation to proper authorities regarding out of stock condition.
6. Prevention of damages, losses and unauthorized uses etc.
7. Rejected materials managements.
8. Sales return management
9. Maintenance of accounts.

Material documents of this department are produced in coordination with the
production department. Monthly check and other periodical checks are done to
certify the actual inventory values in quantities . There is a separate section for
rejected product. Rejected products are stored in stores department itself. Such
products are inspected before and after by the quality control department. Such
products are sold out as separate sale items.
Classification of materials
Raw materials
-Latex
-Coir
-Chemicals
-Cloths
-Fabrics

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General Engineering Materials
-Electrical items
-Mechanical items
-Capital item tool etc
Stationery Items and Furniture
-Furniture
-Paper
-Bill books
PURCHASE DEPARTMENT

This is the department which purchases the required raw materials for the
production of mattress. So this department can be said as, the backbone of the
firm. The store keeper verifies the materials and if it goes beyond minimum
require level, he will inform it to the accounts officer and he will pass on the
information to the general manger. The general manager then does further
action to buy the required raw materials. The main function of purchasing
department is to ensure unintempted flow of production.


52
STRUCTURE OF PURCHASE DEPARTMENT









Purchase Functions:

Source identification:
Source identification involves the identification of suppliers from which
purchase are to be made.
Source selection:
Source selection involves selecting the best supplier from different suppliers,
which is based on desired quality, quantity, price ,service etc.
Vendor rating:
This responsibility lies with the head office. Vendor rating is done on the basis
of product, price of the materials and the reports from the production
department in the case of latex or chemicals.

PURCHASE OFFICER

JR. CLERK

JR. CLARK

53
Receipt of material:
Materials are collected by the receipt store and the details will be given to the
section for inspection. Number of items passed, rejected and the reason for
rejection if any will be specified. Receipts store will then prepare materials
receipt report and then sent it to the concerned sections i.e.; purchase and
accounts .The original will be retained by the receipt store.
CLASSIFICATION OF MATERIAL

The materials used in Rubco RCM division are broadly classified as:
RAW MATERIALS:
Latex, coir rubber chemicals, cloths and qualified fabrics, PU forms and threads.

GENERAL ENGINEERING ITEMS:
Electrical items, Mechanical items, spare parts and capital item tools.

STATIONARY ITEMS AND FURNITURE:
Office equipments, papers & bill book, cleaning products.

PURCHASE PROCEDURE
1. Requisition
The power of approving material requisitions is with rubco head quarters.
2. Purchase Proposal:

54
After purchase requisition has been approved by the head office, the order is
placed.
3. Purchase order:
After fixing the right supplier, purchase order is prepared and placed with
proposed party. The order rate, quantity, delivery schedule and terms of
payment will be mentioned.

4. Vendor rating:
The responsibility lies with the Rubco head office. Vendor rating is done on the
basis of product, price of the material and reports from the production
department in the case of latex or chemicals.
6. Receipt of materials:
Materials are collected by the receipt store and the details will be given to the
section for inspection. Number of items passed and reason for rejection if any
will be specified. Receipts store will then prepare materials receipt report to be
sent to the concerned section i.e.; purchase and accounts. Original copy will be
retained by the receipt store.

PRODUCTION DEPARTMENT
RUBCO RCM division has progressively recorded high productivity and
profitability.
Production department is equipped with efficient and qualified managers and
supervisors.


55

STRUCTURE OF PRODUCTION DEPARTMENT












1) Production (Main Plant) :
The main raw materials used for the production of bare mattress are the
curled fiber. The purpose of rubber latex is to bond the resilient curled coir
fibers together and to impart a shape to the product. Raw materials and coir is
acquired by the company from internal sources. Along with the main material
compounding, chemicals are also required for the production. Most of the
compounding chemicals are purchased internally.


PRODUCTION MANAGER

PRODUCTION
MAIN PLANT

PRODUCTION
FURNISHING

PRODUCT
DEVELOPMENT

LAB AND
QUALITY
DEPARTMENT

PRODUCTION
PLANNING

ENGINEERING
DEPARTMENT

56

STRUCTURE OF PRODUCTION DEPARTMENT (MAIN PLANT)
















PRODUCTION CAPACITY:

Rubco mattress production facility is among the very few in the country to
employ state-of-the-art Austrian machinery. The machinery as well as the
Shift IN-Charge

Production
Supervisor

Production
Supervisor

Production
Supervisor
Skilled
Operator
Skilled
Operator
Skilled
Operator
Skilled
Operator
Skilled
Operator
Highly skilled
Workers
Skilled Workers
Semi Skilled Workers
Unskilled Workers

57
technology is sourced from DOA of Austria. The plant has annual install
capacity of 4.8 million units comprising of mattress, pillows and other
rubberized coir products. The furnishing section is equipped with most modern
computer controlled machines imported from UK and USA. Strict quality
Control is observed at every stage of the production to ensure that Rubco
rubberized coir mattress always measure up to the highest standard.
The no: of workers are
Highly skilled - 19
Skilled workers - 23
Semi skilled - 30
Unskilled - 45
Casual worker - 99
Temporary worker - 13
2) PRODUCTION (FURNISHING):
Furnishing department is carrying vital part in the total production function of
rubberized coir mattress division. . The furnishing department shall be
responsible for the furnishing of different models of mattress and cushions as
per standards. The section is also responsible for the inspection of mattress and
cushion labeling, packing and dispatching of mattress and cushions. The bare
mattress from production department is brought into furnishing department and

it is fabricated with rexin and clothes and is packed and made ready for
dispatch.

STRUCTURE OF FURNISHING DEPARTMENT

58










MAJOR MACHINES IN THE FURNISHING DEPARTMENT
1. Quilting Machine
2. Border Stitching Machine
3. Tape Edge Machine
4. Sewing machine
5. Comer Cutting Machine
6. Fabric cutting Machine
7. Sealing Machine
8. Handle stitching machine

Consumables required for furnishing department
1. Quilted fabrics
2. PU Forms
3. Clothes
4. Threads
Shift In-Charge
Production
Supervisor
Production
Supervisor
Production
Supervisor
Highly Skilled
Workers
Skilled
Workers
Unskilled
Workers
Semi Skilled
Workers

59
5. Expanded poly ethylene sheets
6. Threads
7. Labels
8. Poly ETHYLENE covers
9. Tapes

Labels Fixed on the Mattress
1. IS1 Sticker
2. Brand Name
3. MRP sticker
4. Quality CHEK sticker

3) Product development
The product development carried out is concerned with the identification of
the most economically feasible method for applying the principles through
research It involves design, redesign and fabrication of new or modified product
and testing it to find its usefulness .Product development essentially involves
developing product to suit customers' needs and conditions .The purpose is to
ensure that it meets the requirement and quality standard. This is applicable to
all product modification of the existing company.


4) Production Planning and Control

It is done on the basis of specification or orders placed by RUBCO Sales
international & based on domestic order placed by authorized distributors. The

60
required quantity and quality is specified through production planning and the
production is done according to this planning. Operations planning involves the
organization of an overall manufacturing operating system to produce a product.
Objective of production planning is to provide a physical system together with a
set of operating guidelines for efficient conversion of raw material, human skills
and other inputs into finished products.
5) Lab and Quality Control Department

The adoption of quality management system should be a strategic
decision of an organization. The design and implementation of an organization's
quality management system is influenced by varying needs, particularly the
objectives the products provide to sustain and win product's acceptability in the
market. Rubco's products have found domestic and international acceptance
largely due to its stringent quality maintenance and quality control of mattress
produced Rubco's quality policy is to give enhanced satisfaction to the
customers through the manufacture and supply of rubberized coir mattress by
the use of modem manufacturing equipments .They voluntarily meet the entire
product and process related regulatory requirements and are committed to
improve their performance in all spheres of activities.



Quality objectives:

In order to implement the quality policy, the quality objectives are established
as follows.

61
1. Higher capacity utilization
2. Higher level of profitability
3. Lower level of rejections
4. Lower level of breakdowns
5. Least possible customer complaints
6. Higher level of customer satisfaction.

It is ensured that quality policy and objectives are understood, implemented
and maintained by all the personnel in the organization











6) ENGINEERING DEPARTMENT

Hierarchy of Engineering Department

62











Functions of Engineering department:
1. Instrumentation
2. Electrical maintenance
3. Maintenance & utility
4. Boiler unit maintenance




MARKETING DEPARTMENT
The traditional definition of marketing is the performance of business activities
that direct the flow of goods and service from producers to consumers. The
marketing concepts hold the key to achieving its organizational goals which

ELECTRICAL MAINTENANCE ENGINEER

Electricians

Skilled Workers

63
consists of the company being more effective than competitors in creating,
delivering and communicating consumer value to its chosen target markets.
The American Marketing Association offers the following definition
"Marketing is a process of planning and executing the conception of pricing,
promotion and distribution of ideas, goods & services to create, exchange values
that satisfy individual and organizational goal". Theodore Leavitt of Harvard
drew a perspective contrast between the selling and marketing concepts: Selling
focuses on the need of the seller: marketing focuses on the needs of the buyer.
Selling is preoccupied with the idea of satisfying the needs of the customer by
means of the of activities associated with creating, delivering and finally
consuming it. Product, while marketing is the whole cluster.
MARKETING STRATEGIES
Rubco mattress has attained wide market coverage in Kerala within the
short period time of it being established. Now Kerala market is dominated by
Rubco mattress industry. The effective marketing strategy that they have
adopted is the reason behind this explosive growth of Rubco. Expansion of
existing market into other geographical areas, i.e., now Rubco is the market
leader in Kerala mattress industry and they are about to expand their market all
over South India in order to attain their target turnover. Planning for introducing
new products into market and entering untapped segments is their innovative
strategy.


STRUCTURE OF MARKETING DEPARTMENT



Marketing Department


64









MARKETING MIX
Marketing mix is the set of marketing tools that Rubco RCM Division uses to
pursue its marketing objectives in the target market. It is classified as four Ps of
marketing i.e.; product, price, place, and promotion
- Product
- Price
- Place
- Promotion


PRODUCT:
Rubco rubberized coir mattress are scientifically designed to provide proper
back support without compromising on comfort by virtue of their ingenious

65
design, construction and the unique 3-D technology. Rubco mattress are firm
without being hard and are extremely durable. As they do not sag, they are very
comfortable and ensure a healthy and restful sleep. Rubco rubberized coir
mattress is available in nine variants each catering to a specified user segment.
The range comprises of everything from regular mattress to special orthopedic
models and high-end luxury varieties. They come in varying sizes and
thickness, depending on the specific use they are meant for. Rubco
manufactures a wide range of mattresses catering to diverse segment.

PRICE:

Price denotes value of a product or service expressed in money. Pricing is one
of the most important activities for any organization. Pricing policy adopted by
RUBCO RCM division is Transfer Pricing. Rubco setup its price at transfer
price. Transfer price is the price at which Rubco transfers products to
distributors. A general guideline as to the total markup of 11% of the distributor,
a markup of 25% to the retailers. Price quoted is inclusive of transportation
charges. Rubco allows 2% discount on cash sale. Various schemes and offers
are announced for distributors during festival season.




PROMOTION:

66
To win the battle of competition every manufacture has to choose a
number of promotion tools which can be classified as- advertising, publicity,
Personnel Selling and sales promotion.

ADVERTISEMENT AND PUBLICITY
The major purpose of advertisement and publicity is to promote
effectively through providing information to customers to make them aware
about the characteristics of the product.
The effective formulation strategies are formed by the marketing
department. the advertisement methods that Rubco RCM follows are given
below:
1. Wall paintings
2. Sales promotion schemes
3. Visual/electric media
4. Hoardings
5. Exhibitions
6. Laminated boards
7. Retailers trade
8. Turnover discount to distributors
9. Sales incentive scheme

PLACE (DISTRIBUTION)
Rubco mattress is made available all over Kerala and Tamilnadu by its
wide distribution network. Now they are going to expand their marketing
network all over south India.

The distribution network is given below:

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Exporting Activities:
As Rubco RCM division strictly follows its quality policy, the products
satisfies the expectation of the customers. Rubco receives inquiries from
SriLanka, UAE, Netherlands, Germany and other middle East countries
regarding export of rubberized coir mattress. Rubco plans to market in other
countries also.

















68







CHAPTER V
SWOT ANALYSIS












69
SWOT ANALYSIS
The overall evaluation of company's strength, weakness, opportunities
and threats is called SWOT Analysis.
1. Rubco mattress division has lot of product varieties and price ranges.
2. In the company there does exist a cordial relationship between employees
and top level management and among dealers and distributors.
3. Through effective marketing Rubco products could have acquired wide
market acceptance & customer preference within a short period of being
established.
4. Rubco has well developed corporate strategy; this is one of their major
strength.
5. Style of leadership that the company follows is Leadership through
dedication and coordination. That encourages employees of the
organization to work towards their organizational goals.
6. The strength of the company lies with the quality of their product, wide
range of products is capable to challenge variable environment
conditions, goodwill and customer service, technical advice marketing
intelligence, wide network and interaction with customers.
7. Effective management system is one of their strength.
8. Ability of the top level management to manage strategic changes.
9. Good financial management system that is existing in the organization.
10.

WEAKNESS:
1. The company is newly established: therefore most .of the employees are
freshers. Therefore the company has to conduct a lot of training
programmes to make the employees suitable for the work environment:

70
so large volume of productive time is consumed to make them
experienced workers and to familiarize with a work procedures.
2. The weakness appearing most conspicuous to make their product
acceptable by customers is the higher prize compared to their
competitors. Rubco is going to expand their market in overall south India;
but transportation from Kerala to other markets will be a big Burden they
are facing in the market when comparing to their Competitors they can
easily supply goods into market according to Market demand because
they are having manufacturing plants in other States.

. OPPORTUNITIES

1. The company has introduced lots of product varieties into the market
therefore customers have lot of alternatives to make their own decisions.
2. RUBCO RCM division has not yet fully tapped their 100% utilization of
existing machine capacity, so opportunities lies there. Undertake new.
3. Rubco mattress is facing high level competition in the market but their
products are having higher demand in the market, it is because of the
quality policy that they are adopting in their production process.

THREATS

1. RUBCO RCM Division has very high regional and domestic Competition
from other companies like Kurl-On . Duroflex and Sunidra mattress.
2. Competition in the market is increasing day by day because of lot of
unauthorized companies in the market. They are products of low quality
at less price and attracting small customers. This is the major threat that
company is facing in the market.

71

3. Each and every company is facing threats in the market because
customer's requirements are changing day by day.
4. Change in the environmental factors can make influence in the sales
growth.
5. Taste of consumers are changing day by day.
6. Rising labour cost is another threat that each company faces today.











72









CHAPTER VI
FINDINGS, SUGGESTIONS, CONCLUSION











73
FINDINGS
1. Presence of good industrial relations with local unions and there is a
greater co-operation between management and employees.
2. Workers fear of loss of jobs and hence resist modernization of plant.
3. Wage system is fair in Rubco.
4. Workers health and safety are given prime importance.
5. Labour turnover is very low.
6. Trade union plays a vital role as bargaining agents. The management is
sometimes forced to accept unreasonable demands made by the unions.

SUGGESSIONS

Considerably within a short period of time being established Rubco
divisions has earned the reputation of being a leading manufacturer of
rubberized coir mattress by virtue of an enviable manufacturing infrastructure.
As a result of efficient monitoring and quality control at every stages of
production, wastages and rejections are brought down. Whatever be the orders,
whatever be the risk, whatever be the tasks Rubco RCM division will live up to
the expectations of the people by providing a wide range of mattress and other
rubberized coir products, catering to drive segment of the market, enforcing
strict quality measures and standards for its products. We can see Rubco as non
competent leader in the field of rubberized coir mattress in the near future itself.

Based on the study conducted, the following suggestions are made:



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In the present market Rubco Mattress is facing overall demand in the
market, in order to tap market demand. Rubco has to tap their 100%
utilization of existing machine capacity that they are not yet fully tapped.
Rubco has to adopt a strategy that would result in lowering the production
and distribution cost than that of its competitor to win the market.
The company has to make strengthen their supply chain in other states, in
order to tap the target market.
The company has to take about the conveyance facility to employees.





















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CONCLUSION

The organization study has helped to make a valuable conclusion through
the analysis of different functional department of the Rubco rubberized coir
mattress division. It enjoys the confidence and support of its employees. This is
one reason that makes the Rubco rubberized coir mattress division, the most
innovative brand in the industry. Presently it is the prominent niche in the
market. It is preferably ranked at the top with consideration to quality. The core
competencies of the organization is as follows:

1. Professional management
2. Effective leadership
3. Cordial relationship between employees and top management
4. The company has well established network in industry with sound
manufacturing and marketing experience.
5. The company has adequate resources available for expansion.