CHAPTER 1

INTRODCUTION

Organization is a social unit which is deliberately constructed and

reconstructed to seek specific goals. An organization comes into existence
when there are a number of persons in communication and relationship to
each other and are willing to contribute towards a common Endeavour. The
evolution or organization dates back to the early stages of human civilization
when two or more persons began to cooperate and combine together for
fulfilling their basic needs of food, clothing, shelter and protection of life. Thus,
an organization is born when people combine their efforts for some common
purpose. It is a universal truth that an individual is unable to fulfill his needs
and desires alone because he lacks strength, ability, and resources. So he
seeks the cooperation of other people who share goals with him.

This study is done at KITEX Ltd, Kizhakkambalam, Aluva. It has been

carried out to get an understanding of the structure and functioning of the
organization. This study undertaken to get an exposure to the functioning of
different departments of the company. It also helps to interact with the
managers of different departments and to observe the workers at their work
place and to act together with them. Main purpose of the study is to get a
clear-cut idea about the functioning of different departments of the company.

Organization study is confined to 31 days based on the primary data

obtained from the head of various departments, the middle level managers
and supervisory staff. This covers in brief in the present position of the textile
industry and the company. Organization study is conducted by personally
visiting the company at Kizhakkambalam. Primary data have been collected by
structured interview with the managers and other personnel of the company.

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All the information about manufacturing process has been gathered by
interacting with different personnel of the organization at various levels

1.1. NEED AND SIGNIFICANCE OF THE STUDY

Combining the theoretical background, we have gained so far and the

practical study of the organization makes it possible to have a clear cut
understanding and a broader perspective of an organization and its functional
and the operational aspects. Organization study at KITEX helped me to
acquire practical knowledge through personal study and observation. Apart
from analyzing and understanding the recent trends and strategies in different
industries of KITEX Ltd, the investigation had multi-dimensional focus on the
following areas:

a. Type of business performed by the company and its nature.

b. Various functions and operations of the company.
c. To know the market position of the organization.
d. Production process performed by the company.
e. Financial and the accounting patterns of the company.
f. Human resource management of the company.
g. How a company is working successfully in such a competitive
scenario.
This Organization study also helps to have a clear understanding on
various practical applications of the theories which we learned in the text
books.

Objective of the Study

a. To analyze the functioning of each department and organization as

whole.
b. To study the various functions of the Organization.
c. To identify the relative position of the company
d. To get in touch with the industrial and organizational environment.

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 e. To know about organizational structure.

Scope of the Study

This organization study is useful in getting the quality and performance

of the company. It will help to conduct a detailed study on the structure of the
functional areas of the organization. It also helps to identify the strength and
weakness of organization and also help to find out the area where the
organization should improve. This study also helps researcher to familiarize
with the textile industry and also ascertain the present position of the
company.

Methodology Followed

Primary Data:

It is collected through the discussion with managers, various

department heads, officers, and employees.

Secondary Data:

It is collected from:

a. Internet
b. Annual report
c. Office records

This study is done by personally visiting the company at

Kizhakkambalam, Aluva. All the primary data’s have been collected by
structured interview with General Manager, and Managers of various
departments and other personnel including supervisors, workers etc… of the
company. Information about manufacturing process has been collected by
observing the functioning of machines and equipment’s in the plant. The
quality manual, publications of government of India, ministry of textile,

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magazines, periodicals relating to the textile industry, internet etc, were a
useful source of the secondary data.

1.2. INDUSTRY PROFILE

1.2.1 Introduction to Industry and its Evolution

New innovations in clothing production, manufacture and design came

during the industrial revolution – these new wheels, looms, and spinning
processes changed clothing manufacture forever. There were various stages –
from a historical perspective-where the textile industry evolved from being a
domestic small-scale industry, to the status of supremacy it currently holds.
The ''cottage stageʺ was the first stage in its history where textile were
produced on a domestic basis.

Clothing manufactured during the industrial revolution formed a big part

of the exports made by Great Britain they accounted for almost 25% of the
total exports made at that time doubling in the period between 1701 and 1770.
The center of the cotton industry in Great Britain was Lancashire –and the
amount export from 1701 to 1770 had grown ten times .However, wool was
the major export item at this point of time. In the industrial revolution era, a lot
of effort was made to increase the speed of the production through inventions
such as the flying shuttle in 1773, the flyer-and-bobbin system, and the Roller
spinning machine by John Wyatt and Lewis Paul in 1738.

During this period cloth was made from materials including Wool, flax
and cotton .The material depended on the area where the cloth was being
produced, and time they were being made. In the latter half of the medieval
period in the northern part of Europe ,cotton come to be regarded as imported
fiber .During the later phase of the 16th century cotton was grown in the
warmer climes of America and Asia

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 During the Industrial Revolution, new machines such as spinning
wheels and handlooms came into the picture; making clothing material quickly
became an organized industry-as compared to the domesticated activity it had
been associated with before. A number of new innovations led to the
industrialization of the textile industry in Great Britain. In the initial phases,
textile mills were located in and around the rivers since they were powered by
water wheels. After the stream engine was invented, the dependence on the
rivers ceased to a great extent .

In the later phase of the 20thcentury, shuttles that were used in the
textile industry were developed and became faster and thus more efficient
.This led to the replacement of the older shuttles with the new ones. Today ,
modern techniques, electronics and innovations have led to a competitive, low
–priced textile industry offering almost any type of cloth or design a person
could desire .With its low cost labor base ,china has come to dominate the
global textile industry.

1.2.2 Global Scenario

According to statistics, the global textile market possesses a worth of

more than $400 billion presently. In a more globalize environment the industry
has faced high competition as well as opportunities. It is predicted that global
textile production will grow by 25% between 2002 and 2010 and Asian region
will largely contribute in this regard .High production of wool, cotton and silk
over the world has boosted the industry in recent years.

Japan, India, Hong Kong and China became leading producers due to
their cheap labor supply, which is an important factor for the industry the World
Trade Organization (WTO) has taken so many steps for uplifting this sector. In
the year 1995, WTO had renewed its MFA and adopted Agreement on
Textiles and Clothing (ATC), which states that all quotas on textile and clothing
will be removed among WTO member countries. However the level of exports

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in textiles from developing countries is increasing even if in the presence of
high tariffs and quantitative restrictions by economically developed countries.
Moreover the role of multifunctional textiles, eco-textiles and customized
textiles are considered as the future of the textile industry.

1.2.3 Indian Scenario

Textile industry in India is the second largest employment generator

after agriculture. It holds significant status in India as it provides one of the
most fundamental necessities of the people. Textile industry was one of the
earliest industries to come into existence in India and it accounts for more than
30% of the total exports .In fact Indian textile industry is the second largest in
the world, second only to China.

Textile industry is unique in terms that it is an independent industry,

from the basic requirement of raw materials to the final products, with huge
value addition at every stage of processing. Textile industry in India has vast
potential for creation of employment opportunities in the agricultural, industrial,
organized and decentralized sectors rural and urban areas, particularly for
women and the disadvantaged. Indian textile industry is constituted of the
following segments: Readymade Garments, Cotton Textiles including
Handlooms, Man-made Textiles, Woolen Textiles, Handicrafts, Coir and Jute.

Till the year 1985, development of textile sector in India took place in
terms of general policies. In 198, for the first the importance of textile sector
was recognized and a separate policy statement was announced with regard
to development of textile sector .In the year 2000, National textile policy was
announced. Its main objective was to provide cloth of acceptable quality at
reasonable prices for the vast majority of the population of the country, to
increasingly contribute to the provision of sustainable employment and the
economic growth of the nation and to compete with confidence for an
increasing share of the global market. The policy also aimed at achieving the

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target of textile and apparel exports of us$ 50 billion by 2010 of which the
share of garments will be us$ 25 billion.

 Characteristics of Indian Textile Industry

a. India has rich resources of raw materials of textile industry. It is one of
the largest producers of cotton in the world and is also rich in resources
of fibers like polyester, silk, viscose etc.
b. India is rich in highly trained manpower .the country has a huge
advantage due to lower wage rates. Because of low labor rates the
manufacturing cost in textile automatically comes down to very
reasonable rates.
c. India is highly competitive in spinning sector and has presence in
almost all processes of the value chain
d. Indian garment industry in very diverse in size, manufacturing facility,
type of apparel produced, quantity and quality of output, cost,
requirement for fabric etc.. It comprises suppliers of ready-made
garments for both domestic or export markets.
e. Indian labor laws are relatively unfavorable to the trades and there is an
urgent need for labor reforms in India.
f. India seriously lacks in trade pact memberships, which leads to
restricted access to the other major markets.

 Problems Facing by Textile Industry in India

The cotton textile industry is reeling under manifold problems. The

major problems are the following;

Sickness:-

Sickness is widespread in the cotton textile industry. After the

engineering industry, the cotton textile industry has the highest industry
incidence of sickness. As many as 125 sick units have been taken over by the

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Central Government. Sickness is caused by various reasons like the problems
mentioned below.

Obsolescence:-

Plant, machinery and technology employed by a number of units are

obsolete. The need today is to make the industry technologically up-to-date
rather than expand capacity as such. This need was foreseen quite some time
back and schemes for modernization of textile industry had been introduced.
The soft loan scheme was introduced a few years back and some units were
able to take advantage of the scheme and modernize their equipment.
However, the problem has not been fully tackled and it is of utmost importance
that the whole industry is technologically updated.

Govt. Regulations:-

Government Regulations like the obligation to produced controlled cloth

are against the interests of the country. During the last two decades the
excessive regulations exercised by the government on the mill sector has
promoted inefficiency in both production and management. This has also
resulted in a colossal waste of raw materials and productive facilities. For
example, the mills are not allowed to use filament yarn in warp in order to
protect the interest of art silk and power loom sector which use this yarn to
cater to the affluent section of society.

1.2.4 Textile Industry in Kerala

The first cotton textiles mill was established in 1883 in Kallai near
Kozhikode by P.S Santhappa Chettiyar and M. Guptan Namboothiripad,
known as Malabar Spinning and Weaving Mill. The commercial production
was started in 1887. Later in 1976 the mill was taken over by Government of
Kerala and handled over to Kerala state textiles corporation. The second mill
presently called Parvathi Mills Ltd. Was started in 1884 by James Darragan,

8
an English man using 19 acres of land donated by the Maharaja of
Travancore. In 1888, the mill was sold to another British industrialist named
AT VIN. In 1932 the management was taken over by Kerala Textiles
Corporation. In April 1974, the mill was nationalized under sick textiles
undertaking (nationalization) Act and was made a unit of National Textiles
Corporation (NTC) Limited Bangalore, which is a subsidiary of NTC Delhi.
Sitaram Textiles Ltd., another oldest mill was established in 1903 as a Private
Limited Company. Balarama Iyyer started it. Later due to mismanagement and
labor trouble, company was liquidated in 1954.

The factory was gutted down due to fire in 1959 and spinning
production was completely stopped. The Government of Kerala purchased this
unit as a result of liquidation and public auction in 1972, with the modest start
of these mills, the number of cotton textile mill rose to 31. The government of
Kerala has announced in state assembly on March 29, 1994, its Willingness to
start 5 more spinning mills, one each of Kazargod, Kozhikode, Trissur,
Kottayam and Malapuram along with the commissioning of corporative
spinning mill at Alappy with a spindle capacity of 6000 spindles.

Cotton textiles industries are concentrated in district of Trissur and

Palakkad followed by Ernakulum and Kannur. These four districts together
account for nearly 3/4th of the spinning mills in Kerala. The numbers of existing
composite mills are quite low i.e., only four in number, its growth during the
last 10 years is nil. Due to the unprofitable nature of composite mill, Malabar
spinning and weaving mill discontinued its weaving operation and
concentrated on spinning only. Calicut modern spinning mill once turned sick
is now taken over by a financially sound third party and found earnings before
the last, decade. There are 7 cotton textile mills in Trissur including one
composite mill. Kottayam stands last in the list with only one state owned mill.

There are 16 private mill in Kerala of which 14 are spinning mills and
the rest 2 are composite mills. The national textile corporation has got under it,

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4 spinning mills and 1 composite mill. The corporate sector owns only 2
spinning mills. In Kerala the Trissur corporative spinning mills with an installed
spindle capacity of 12,000 spindles is the smallest mill followed by Kathayee
Cotton Mills Limited with 14,860 spindles.

Another welcome feature was that a 100% export oriented unit, Past
Pin India Ltd. Started commercial production at Palakkad. These units are
located at Palakkad near Tamilnadu border. Another corporative mill, Allepey
Corporative spinning mill at Kayamkulam is yet to be commissioned. Out of
the 31 mills in Kerala, 14 are private sector, 8 under National Textiles
Corporation, 4 under Corporative Sector and 5 under K.S.T.C.

1.2.5 Industry Competitor Analysis

Indian textile industry is one of the oldest and most significant industries in
the country. It accounts for around 4 per cent of the gross domestic product
(GDP), 14 per cent of industrial production and over 13 per cent of the
country's total export earnings. In fact, it is the largest foreign exchange arning
sector in the country. Moreover, it provides employment to over 35million
people. The Indian textile industry is estimated to be around US$ 52 billion
and is likely to reach US$ 115 billion by 2012. The Domestic market is likely to
increase from US$ 34.6 billion to US$ 60 billion by 2012. It is expected that
India's share of exports to the world would also increase fromthe current 4 per
cent to around 7 per cent during this period. Textile industry provides one of
the most fundamental necessities of the people. It is an independent industry,
from the basic requirement of raw materials to the final products, with huge
value-addition at every stage of processing. In fact, it is estimated that one out
of every six households in the country directly or indirectly depends on this
sector .Here we analyze the sector's dynamics through porter's five-force
model.

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 Competitors in Textile Industry

a. Raymond ltd. Mumbai

b. Grasim Industries Ltd. Nagda
c. S.Kumar. Kolkata
d. Reliance Industries Ltd. Mumbai
e. Mafatlal Industries. Mumbai
f. Arvind Mills Ltd. Ahmadabad
g. Nirmala Fabrics. Thane
h. Ramraj Cotton Mills
i. The Bombay Deying&Mfg Pvt ltd. Mumbai
j. MCR Cotton Mill

1.3. COMPANY PROFILE

1.3.1 Introductions to ANNA Group of Companies

More than three decades age in 1968, when Mr.M.C.Jacob founded the
Anna Aluminum Company, he made a break with the past. Belonging to an
affluent family of plantation owners, he ventured in to the risk world of
manufacturing industry and hoped for the best, while working very hard to
make his maiden venture to a great success. Today the group is involved in
manufacturing of aluminum sheets, circles, vessels and utensils, spices, and
fabric, school bags, garments and marine exports etc. The ‘Anna’ range
vessels and utensils are highly popular in domestic market and in the Middle
East, U.S.A, Africa, and Australia. The group of turnover is around 200 cr.

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 Anna Group, a multi core success story began in 1968 is now spread
heading the thrust in to the new millennium. From a company devoted to the
manufacture of aluminum vessels and utensils, it involves spices and fabric,
school bags, garments and marine exports. It has emerged as a
Multidimensional giant with interest in various fields ranging from textiles to
spices to baggage. Anna Group, where quality the buzz word has opened new
vistas of exciting challenges. Today Anna ranges of product are very popular
in domestic market and overseas.

Anna-Kitex group is one of the leading industrial groups in the state of

Kerala employing more than 12,500 personnel for the past 40 years. The
group is engaged in the manufacture of diverse products like garments,
textiles, school bags, travel bags, umbrellas, aluminum utensils, kitchen
appliances, branded spices, curry powders and ready to eat food which is
marketed in the famous brands of Kitex, Scooby-day, Anna aluminum,
Chackson and Saras. The Anna-Kitex group is a pioneer in the fashion
industry Anna Group, Where quality - the buzzword - has built success.

Anna range of vessels and utensils are highly popular in the Middle East,
USA, Africa and Australia. The organization comes under Anna Group are as
follows:
a. Kitex Limited
b. Anna Aluminum Company (Chackson)
c. Sara’s spices
d. Kitex Garments
e. Scoobeeday products pvt ltd

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 1.3.2 Kitex Limited

Anna Group’s weaving unit, Kitex Limited was established in 1975. The
company is engaged in the production of fabrics made of cotton and other
blends, grey cloth, bed sheets and lungies. Through the years, the company
has carved a niche for itself in this highly competitive industry with its tradition
of world class quality.
Kitex is engaged in production of fabrics made of cotton and other
blends, grey cloth, bed sheets and lungies are available in four various types-
Executive, Medium Super, Medium and Economy all are priced differently.
Kitex white gives us an array of white dhothies single as well as double. It
becomes with streaks of colors and gold to add to the looks our dhothies. We
also have beautiful and wide range of bed sheets under the label of Sweet
Dreams. Through the years the company has carved a niche for itself in this
highly competitive industry with its tradition of world class quality.

Kitex has a well-organized production department and is committed to

cent percentage quality in all the production process. In the production
department Kitex has 383 power looms and 22 automated loom. There are
about 390 workers in the plant. They use both automated and power looms in
the production process. The annual sales range is in between US $10 million –
US $50 million. Kitex follows a line organizational structure and their span of
management is narrow due to this they have the advantage like reinforcing
authority relationship by emphasis of status given, preventing cross
communication etc.

Kitex products are marketed through 2000 authorized dealers. Kitex

fabrics are now exported to many parts of the world. Kitex is going in for a

13
major expansion plan to augment the production capacity. At the dawn of the
new millennium Kitex entered in to the luggage and baggage industry under
the brand name of scoobeeDay.

Vital Status

Name : Kitex Limited

Address : Kizhakkambalam, Aluva

Registered Office : Kizhakkambalam

Nature of the incorporation : privet Limited Company

Nature of Business : Manufacturing of cotton textiles & bag

Nature of Product : Industrial Products & Consumer Products

Brand Name of the Product: Kitex

Total Built up area : 16, 50,000 sq.feet, 500 modern looms,

20million sq.meter of cotton, & cotton Blends.

Employment potential : 1400

Production Capacity : 3,500 sq.per day

Total Capital Employed : Rs 3, 39, 01,060

Annual Sales Range : 200 crores

Growth : Steady

Founder : Sri: M.C.Jacob

Chairman : Mr Bobby.M.Jacob

Director : Mrs: Mini Bobby Jacob

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Managing Director : Mr Sabu jacob

Auditor : Mr. Liju V.Rajan Kolath & Co

Banker : Federal Bank, ICICI, Canara Bank

ISO CERTIFICATION

Kitex got ISO 9001-2000 IN February-2007. They are committed to

manufacture and deliver quality. Kitex Limited is the leading manufacturer
with ISO 9001 - 2000 in South India of all varieties of Greige Fabrics, Yarn
dyed fabrics, Dobby and Leno dobby fabrics made of Cotton, Polyester cotton,
Cotton Nylon, Cotton Flax, Linen, Cotton Linen, Cotton Lycra, Polyester Lycra
etc. They can do any weaves / qualities like cambric’s, sheeting’s, poplins,
mulls, casements, drills, twills, linos, satins, bed fords, oxfords, stripes etc. .
They have 525 running Looms of Sulzer, Picanol, Dornier & Cimmco making
around 13,00,000 Mtrs of fabrics every month.

They are the leading manufacturer with ISO 9001 - 2000 in South India
of all varieties of Greige Fabrics, Yarn dyed fabrics, Dobby and
Leno dobby fabrics made of Cotton, Polyester cotton, Cotton Nylon, Cotton
Flax, Linen, Cotton Linen, Cotton Lycra etc

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 Fig 1.1 Vision and Mission

World Class Manufacturer

Customer Policy strategy Quality, Leadership,

process and Teamwork
people

1.3.3 Vision of Kitex Ltd

a. To reach the excellent quality standards in the coming year

b. To keep in place with modern technologies and concepts
c. To organize supply of materials with minimum cost to maximum
extent possible without any compromise in quality
d. A world class manufacturing company focusing on all round
business excellence through Total Quality Management System with
committed leadership effective team work delighted customers and
satisfied employees in an environment friendly organization.

1.3.4 Mission of Kitex Limited

Fabrics and processed fabrics as per the customer specification

efficiently in a professional and environment friendly manner, on time, and at
the right cost with at most customer specification to become a world class
organization through improvement.

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Objectives

1. Increase sales of value added item by 20% from the existing level.

2. Reduce rejection by 10% from the present level.

3. Reduce customer complaint by 10%.

4. Increase product range by introducing new inner garments

1.4. PRODUCT PROFILE

1.4.1 Lungies
a. Executive
Superior quality lungies available in various designs and colors.
b. Medium Super
Comfortable lungies you would love to drape. Available in various
designs and color combinations.
c. Medium
Experience freedom and coolness with Medium range of
lungies; comes to you in warm colors and in various designs.
d. Economy
After a hard day’s work, jump into lungi to ease your tension,
to sooth your senses and to feel relaxed.
1.4.2 Dhothies
a. Smartline
White single dhothy with streaks of either dark red or dark
blue or dark green lines, which can be worn equally at home
and outdoors.

b. Smartline Gold
Cream color single dhothy with streaks of Gold Jerry lines for
special occasions.

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 c. Ready wear
Plain white single dhothy you'll love to drape. The anywhere,
anytime wear.

d. Samrat
Pure cotton white double dhothy with lines in 5 different
colors to choose.

1.4.3 Bed Sheets

Following are the types of bed sheets
a. Sweet dreams 50
b. Sweet dreams 60
c. Sweet dreams double sheet
d. Double Side 60 bed sheet + 2 pillow covers
e. Solitude double sheet
f. Sweet dreams king knight
g. Duplex / solitude bed sheets + 2 pillow covers
h. Soft dreams king size + 2 pillow covers
i. Sweet dreams DS + 2 pillow covers

1.4.4 Scoobee Products

At the dawn of new millennium the new generation was presented with
an innovative school bag from Kitex, the main offshoot of Anna Group.
ScoobeeDay bags are compactly designed with unique features that make it
durable, colorful, comfortable and easy to carry. The bag features anti strain
shoulder padding’s and acupressure buds specially designed to minimize the
strain on the back and shoulders.
Following are the types of bags:-
a. School Bags
b. College bags
c. Kinder garden bags

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 1.4.5 Trawellday Bags
The company has ventured into a new segment of bag production as
TREWELLDAY bags. This wide ranges of luggage and baggage products with
latest trends and design and is made from imported raw materials. The bags
are priced premium and has good market share. The price range is from
Rs.650/- to Rs.3000/-. The range includes
a. Trolley bags
b. Travel bags
c. Business bags
d. Lap- top bags
e. Back- pack bags
f. Beauty case bags

1.4.6 Dago Bert Shirting and Suiting

Dago Bert Shirting and Suiting are woven from the finest cotton, using
the toughest materials that are soft to touch when draped on your body.
Featuring the most contemporary designs along with the latest weaving
techniques, Dago Bert Shirting and Suiting are available in variety of colors
and shades.

1.4.7 Agna and Adonis Inner Wear

Kitex has made its foray into the untapped lingerie segment with brand
names Adonis and AGNA. ADONIS-inner wear for men and AGNA- inner wear
for ladies, with Anna group promise of quality, both comes competitively priced
and ensure complete value for money. ADONIS a range of refined vests and
briefs and AGNA a range of Bras and Panties ensure seamless fit and finish.
Both brands use specially processed fabric which feels smooth and healthy
even on the soft skin of newborns. It provides ample space for stretching,
bending and rigorous exercise without tearing.

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 CHAPTER 2

ORGANISATION STRUCTURE

Kitex Ltd follows the line or military organizational structure. Managing

Director is the top level, other functional managers followed by him. The main
advantage of this type of control is that close supervision, clear chain of
command, and close control and fast communication between subordinates
and supervisors. The model of the organization design is mechanistic model.
An efficient management system plays a dominant role in the success of all
business units. It is this section that declares the levels of output, its product in
pattern, pricing technique, marketing style and even the mode of conduct to its
executives.

Managing director who are the representatives of the shareholders take

the important decisions of the group concerns. They perform strategic
planning and policy making functions of Kitex ltd. For their help General
Manager, top executives of the company management are appointed. General
manager is responsible for the smooth, efficient and productive functioning of
the units from the production to the marketing.

The middle level management comprises of production manager,

marketing manager, financial manager, personnel manager and purchase
manager, and store manager and quality controller.

Average Qualification of Employees

a) Top Level: Professionally qualified having sufficient industry experience.

b) Middle Level: Graduation and above with experience in the relevant areas
(both technical and managerial)

c) Junior Level / First line management: Diplomas / industrial training

certification in the textile industry and experience

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 Fig. 2.2
Chairman & M.D
Structure of the
Organization

Vice President

General Manager
2.1. ORGANIZATION CHART

Quality Store Finance General Manager

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Production Purchase
Manager Manager Manager Manager Manager Manager Personnel &
Administration
(Marketing)

Shift In Manager Asst.manager

charge Quality Purchase Finance
Office manager
Inspector Officer
Assistant

Supervisor Executive Manager Manager

Assistant Administrati Personnel
Assistant
Inspector on
Officer
Workers
Manager Manager executives Executive
executive
 CHAPTER 3
OVERVIEW OF VARIOUS DEPARTMENTS
3.1. PRODUTION DEPARTMENT

Production is the process by which raw materials and other inputs are
converted in to outputs. Among all functional areas of management,
production is considered to be crucial in any organization like Kitex Ltd. In
Kitex Ltd, mainly the production of Greige clothes takes place under the
production department. The production manager is known as Weaving Master.

3.1.1 Functions of Production Manager

a. To produce good quality fabrics in accordance with the requirements

and maintain high productivity standards
b. Raw materials, industrial scheduling and co-ordination with purchase
department
c. Prescribing required quality control measure and implementing the
same
d. Arranging dispatch of fabrics, process as per the requirements of sales
department
e. Arranging recruitment through personnel and administrative department
and arranging training for required personnel
f. Implementing perceptive maintenance style for equipment’s and
machines installed.

3.1.2 Functions of Production Department

The following are the main functions of production department.

a. Design of product
b. Design of production system
c. Production planning and control

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 d. Layout of plant
e. Selection of location
f. Selection of plant and equipment
g. Research and development

Fig 3.3 Structure of Production Department

Director, chairman and managing director

General Manager

Manager Manager

Shift in charge Preparatory in charge Electrical

engineer

Supervisor Maintenance super wiser

Jobber Helper

Weaver

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 3.1.3 Raw Materials Used for Production

100 % cotton yarn of different specification for different variety of Greige

cloth from the major raw materials used in the production. The other raw
materials are sizing chemicals, starch adhesives. All these form of direct
materials for production the other indirect materials are different consumable
stores, spares, cleaning chemicals.

The company never faced any raw material shortage. This is due to
efficient supply chain management, scientific estimation of raw material
requirements and timely procurement of raw materials. The purchase
department plays active role in the effective and timely procurement of raw
materials. The total average consumption of 100 % yarn / month.

3.1.4 Production Program

The process of textile industry is broadly divided in to two:-

a. Spinning

b. Weaving

In spinning, the yarns of various counts are manufactured. Count is the

measure of fines of the yarn. The process of manufacturing the pure cotton
Greige cloth from this cotton yarn is called weaving.

In Kitex Ltd, the weaving of cotton Greige cloth is the major process.
The basic output of this unit is 100 % cotton Greige cloth, which is the raw
material of most of the cotton textile industries. About 85% 0f the total sales of
these units are from the sales of lungies, mull, bed sheets, and dhothies
prepared from this cotton Greige cloth.

24
 3.1.5 Production Process

There is a lot of process should be given to cotton yarn before it

undergoes the process weaving and whole department is known weaving
preparation. It is the heart of weaving mill in the preparatory department the
yarn undergoes the process namely

a. Warping
b. Sizing
c. Beam Draw-In
d. Pirn Winding
e. Weaving
f. Folding
g. Recounting
h. Grading
i. Bailing

a) Warping

The yarn from spinning mills gets in the form of ones, copies etc… The
warping process consist in winding of a known number of warp threads of a
definite length parallel to each other on warping beam or weavers beam from
the cones according to the number of ends from particular quality there a limit
for the number of ends to be taken in a warping beam. It is known as creel
capacity of warping machine. In Kitex Limited, warping machine is made from
Amritha lakshmi Machines Works, Mumbai. Its real capacity is 564. Before
taking a new quality in warping, we have to know about the construction
details of fabrics quality at least the total number of warp ends in the particular
quality. The speed of warping machine might be variable according to the
count of the yarn depending up on the kind of stock yarn and processing
technique.

25
Sizing (to weave well and size well)

It is the process of strengthening the yarn wound on beam (warp). In

this process, the warp is passed through sized chemicals, which are mainly
starch and other adhesives. This process makes the yarn more rigid and this
prevents from breaking while weaving. The purpose of sizing is to ensure
processing of warp in looms with minimum breakings.

b) Beam Draw-In

The warp from sized beam is first drawn through dropped wires,
healds and clothes and then read dents according to the design to weave
(plain/ twill, drill, stain, weave etc. These drawn beams are gaited or knotted in
the loom for weaving. Trained and experienced beam drawers do this work
manually

c) Pirn Winding

It is the process of winding gain on pirns for perception of weft yarn

for weaving. This yarn need not require sizing most often weft pirns for use in
automatic shuttle loom (power loom) for using looms equipped with a weft
feeler, the weft pirns are wound with a bottom bunch. Due to weft yarn winding
the parameters of the pirns are changed, the yarn quality improved to the
estimation of dust, fluff and spinning faulbs. After winding, the yarn has more
uniform and balanced structure. There are two types of winding machines in
this company.

-Automatic pirn winding machines

-Circular pirn winding machines
d) Weaving

The method or process of interacting two yarns so that they cross

each other at right angles to produce fabrics. The warp threads length wise

26
fabrics and filling threads (weft and picks) run front side to side. The weaving
looms may be classed in to two groups that is looms are intermitted fabric
formation and looms for continuous fabric formation the woven fabric cut down
from the loom is again unwounded and checked the quality by supervision of
trained checkers and re checkers before folding and bailing. The checking
inspection is as per American 4 Point System.

e) Folding

After classified the fabrics is folding by machine (1 meter pinning)

and counting the meter length and marked.

f) Recounting

The meter length is again recounted and assured the fabric and
sealed and gone for bailing

g) Grading / Sorting
In the quality department, the following operations are carried out
-Sorting or grading of Greige fabrics
-Checking all technical conditions stipulated for fabrics from fluff, thread
ends
-Knots and tags putting a speed mark with a pen on the ends of the fabric
piece indicating the fabric style, measure and grade

h) Bailing

The graded or sorted fabrics packed in bailed condition under the supervision
on the basis of quality. The standard packing in one ball contains 1000 meters.
For bailing, the company has a bailing press which is in good working
condition.

27
 Production is undertaken on the basis of orders received for Greige
cloth. Since the company is having regular orders, there is a continuous
production throughout the year. About 85 % of the Greige cloth produced is
selling as such to parties. The remaining portion of the Greige clothes
produced is converted in to lungies, dhothies, bed sheets and mulls. These
are selling to the ultimate consumers through a dealer network of more than
1600 in numbers spreads all over Kerala and Tamil Nadu. The companies
processing work is doing by various textile dying and printing units in Erode,
Tirupur and Ahmadabad. The conversion process includes bleaching, dyeing,
resizing, printing etc…After the work is done, and different varieties of goods
are recovered back quality checked, packed and marketed by the company.

Safety is of greater importance in any industrial undertaking. The

company has established safety measures as provided in the Factories Act,
1948. The company regularly conducts safety awareness programs and
training classes for its plant workers and supervisors. The production units
have several safety mechanisms like firefighting equipment’s, alarming
systems, first aid facilities etc… The company has its own ambulance service
to face any emergency. As a result of the strict safety measures adopted, the
company has never come across any major accidents or breakdowns.

28
 Fig 3.4 Production Flow Chart

Yarn

Warping Pirn Winding

Sizing

Beam Draw in

Knotting Weaving

Greige Cloth

1st Piece Inspection Un Winding Cutting

ininspection

Checking Folding Recounting

Dispatch Packing Grading

29
 3.1.6 Stores Department

The stores department headed by stores manager. He is assisted by four

persons; two in general shift and one each in other two shift. The store’s
manager is reporting to the general manager .storage of all items of raw
materials including sizing chemicals ,yarn of different specifications,

Adhesives, spare parts, electrical items, lubricants, tools, office stationery

packing materials, etc.. are the responsibility of the stores department
.functioning of the stores department is controlled /administered by the store’s
manager. Materials storage is planned by the store’s manager with the help of
the purchase/production department. yarn and packing materials are stored in
the production department go down and packing section respectively, due to
lack of sufficient space in the store and to facilitate easy handling both the
items .but the stores department controls the issue of both these items.

3.1.6.1 Procedure of Issue of Raw Materials

When particular item of raw material spare parts or tools are required
for production, the supervisor of the concerned section of the production
department issues a material requisition. on receipt of the materials requisition
note or material indent, the store’s manager sees whether the item demanded
in stock in the stores. If the required item is sorted in the stores, it is issued to
the concerned department or section and the acknowledgement for the same
is obtained and field in the stores. If the particular item or material is not
available with the stores or the same has re-ordering level, the stores
department informs the purchase department and issuing purchase
requisition.

The quantity, quality and other specification of the item issued are
recorded in the issue are recorded in the store ledger control account,
prepared and maintained by the stores. Issue and usage of cotton yarn and

30
packing materials are recorded in the stores ledger control account even
though they are not stored in the stores

The store department is fully computerized .A special software package is

designed and installed for inventory management in stores. All the receipts
and issues are recorded in the company.ABC analysis of inventory is done
regular basic .physical stock taking is done once in every month by the stock
taking by the statutory auditor. The stock verification is done independent of
the store keeper and stores manager .All stock of raw materials and spare
parts are stored in assigned areas only .Access to those areas is restricted. All
stock of raw materials, spare parts, tools, etc are insured against fire and hail
damage. A record is maintained for the insurance policies are duly complied
with perpetual stock records are kept for races materials ,stores, spares, work-
in-progress and finished goods .these records are periodically reconciled with
accounting records

3.1.6.2 Materials Control System

The company has a materials control system, which ensures that right
quality of materials is available in the right quality at the right time and right
place with the right amount of investment. it is a comprehensive frame work for
the accounting and control of materials court designed with the objective of
maintaining materials suppliers at a level so as to ensure uninterrupted
production, but at the same time minimizing investment of funds. Because
materials constitute such a significant part of product cost and since this cost
is controllable. The company has proper planning, purchasing, handling and
accounting for materials. Two levels of material control trust in the company—
quality control and financial control. Production manager and stores manager
are primarily interested in quality control, because it is their responsibility to
see that there should be no stock out problem. Finance manager, on the other
hand is interested that too much money should not be invested in materials

31
and every rupee spends on materials should be effective and efficiently
utilized.

Techniques of material control

The following are the main techniques of material control used by the stores
department

 Level setting, economic order quantity

 ABC analysis

 Perpetual inventory system

 Material turnover ratio

 Material cost report

The company does not have any stock in public warehouse or with
consigns .some stocks are lying with job workers, which are given to them for
processing (bleaching, dyeing and printing).

Features of Material Control System

 Continuous availability of all types of materials in the factory.

 No excessive investment in stock materials.

 While purchasing materials, it is seen that it is purchased at reasonable

low price by the store department.

 Information about availability of materials is continuously made

available by the store manager.

 There is proper co-operation and co-ordination among departments.

32
  As a part of material control system there exists an internal check on
material so as to avoid misappropriate of store items.

3.1.7 Quality Control Department

Kitex is very much concerned about the quality of the product and some
export is also made .so high quality must be ensured to meet international
standards. The company has ISO certification. The company has different
equipments and machineries to ensure at different stages of production. The
main aim is to provide maximum quality at minimum cost.

Before purchasing yarn the quality parameters is checked and getting

assurance from the yarn supplier reading to count, strength, twist etc.. for
checking or measuring the above parameters various equipments are
available in the company .the company used to purchase good quality yarn
i.e., auto cone ,auto spliced, electronically siro cleaned combed yarn for
making 100% dying standard quality fabric for export garments

The standard quality of greige fabric will depend on the buyers requirement
.Even

though the company follow stated quality policy ‘4point system’ from the textile

distributors association .Inc,USA and American textile Manufacfectstures

Institute

.Inc ,Newyork .The penalty or demerit points are calculated according to the
length

Defects in the fabric .The American 4 point system

3.1.7.1. Method of Grading

FIRST QUALITY-A piece is graded as ‘first’ if the total penalty point does not
exceed the total yardage of the piece.

33
SECOND QUALITY-A piece is granted as second if the total penalty point
exceed the total yardage of the piece. In increase of not more than 10%in
penalty points will be allowed on ‘first’ quality goods over 50 inch width.

3.1.7.2 Total Quality Management (TQM)

Total quality management (TQM) journey started at ANNA group in 6th june
2005. It is a long journey toward success.Quality means 100% quality in
attitude, speech, people, work, discipline, surroundings, products etc.The
company introduced 5‘s’ techniques are a Japanese method. It helps the
company to

 Improve productivity
 Save time
 Solve space constraints
 Improve morale to employees

5‘s’ techniques

5‘s’ techniques for good housekeeping .they are as follows

1. SEIRI (SORTING)
 Segregate required ,usable ,re-workable and absolute
items
 Dispose of the unwanted item
 Clear off walk ways
(one picture is worth more than a thousand words)
2. SEITON(SYSTEMATIZING)
 Use labels , color codes for easy identification
 Use index for files ,records, drawings etc. to facilitate
irretrievability
 Plan storage with accessibility
(a place for everything and everything in its place)

34
 3. SEISO (SHINING)
 Inspect and clean the supply line ,go down ,scrap yards
and gardens
 Clean up work place, machines and tools after use
 Identify root causes of loud noise, vibrations. Equipment
and take remedial action
(Spic and span leads to zero breakdown)
4. SEIKETSU(STANDDARDIZING)
 Develop standards
 Establish checking procedure
 Create visual controls
 Devise ways and means to expose problems
 (action speaks louder than words)
5. SHITSUKE(SELF DECIPLINE)
 Develop action plan for maintaining the set standards
 Give unambiguous advice instruction to the work
associates
 Carry o 5’s activities as a manner of habit and enthuse to
practice 5’s
(Conduct self-audit)

3.1.7.3 Quality policy of kitex limited

They are committed to manufacture and deliver quality fabric and processed
fabric as per customer specification, efficiently in a professional and
environment friendly manner, on time and at the right cost with utmost
customer satisfaction, while driving to become a world class organization
through continual improvement

 Increase production by 60% from the present level by adding essential

machinery, manpower and solving space constraints

35
  Reduce the present product reduction by 50%
 Reduce the specific fuel and electricity consumption by 10%
 Reduce the customer complaints by 50%(improving quality products
and service)

Corporate social responsibility

As a part of the organizations contribution towards the society the kitex ltd
provide

 The company provides employment opportunity to about 2000 people

 It also provides good working environment to the workers and also
ensure their safety and interests
 The goods produced are ecofriendly and do not cause any harmful
hazards to the environment
 An ambulance service is provided to all BPL families of
kizhakkambalam panchayat
 The company has strict pollution controlling measures
 The company provides free school bags to the anganavady students of
kizhakkambalam panchayat

3.1.7.4 Environmental policy

 Effective utilization of resource to reduce waste

 Abide by environmental law and regulations
 Continual improvement of environment performance
 Establish awareness among employees and business associates
 It follows all the norms set by pollution control board

3.1.7.5 Pollution Control

The company does not have any pollutant products/bye products. The
only pollution may be the cotton particles that may get spread in the loom

36
shed. To prevent this, the factory is having sufficient humidifier to help the
cotton particles settle on the ground .In the addition to this, the factory and
premises are cleaned in a regular basis.

3.1.7.6 Awards Won

Mr. Jacob, the founder of Kitex Limited has won several awards for his
meritorious contributions in the field of business. To mention a few:

 He has won the TRANSWORLD TRADE FARE Gold medal in the year
1975.
 He has been awarded the UDYOG PATHRA Award by the then Vice
President of India Sri. B. D .JETTI in the year 1979.
 A Memento was presented to Mr. Jacob in December, 1992 for his
valuable contribution to the Evangelistic Convention held at Puthencruz.
 Considering his outstanding contribution as an Industrialist Mr. Jacob
was awarded the BUSINESS MAN OF KERALA 1999 award by the
BUSINESS DEEPIKA, the business daily from one of the oldest
Malayalam Newspaper Group.
 KRISTHU JAYANTHY award for the year 2000 was conferred to Mr.
Jacob during the 82nd ALL KERALA CATHOLIC CONGRESS for his
noteworthy contribution to the economy of Kerala.
 For the meritorious services of Mr. Jacob to the community, he was
awarded by Major Arch Bishop Mar VARKEY VITHAYATHIL in the year
2000, on behalf of the Most Gracious IGNATIUS MOOSA 1 st,
PATRIARCH OF VATICAN.
 AKSHAYA AWARD 2000 for his outstanding contribution to
‘Malayanma’.
 The Ernakulam Chamber of Commerce the Joseph Chakola Memorial
‘Vyavasaya Jyothi’ Award to Mr. Jacob for the year 2000-2001.

37
  Department of Catechism Ernakulam-Angamaly has recognized his
contribution by giving a Memento for special service rendered to
Catechism Teachers.
 Bharat Aluminum Company Ltd (A Government of India Enterprise)
Service recognition Award.
 Samman Patra of Government of India, Ministry of Finance,
Department of Revenue for outstanding revenue performance.
 Advertising Industries media presented a Memento ‘Kerala Adifest
2007.

3.2. HUMAN RESOURCE DEPARTMENT

Now days, Human Recourse is considered as one of the important

asset of an organization. Behind every success company their need a great
people making recruitment and retention. Companies must find new ways to
engage the knowledge, experience talents of the employees to find the hidden
values in organization and leverage that value to achieve strategic goods.

Kitex Ltd has a good HR Department and it maintains good relations

with the employees. This helped the company to achieve tremendous growth.
All the employees’ related activities are managed by this department.

The company employees over 800 workers and does not have any
trade union problems. The workers and management sit across the table and
negotiate their demands and rights. The company has an efficient
administrative department which carried out the several functions.

3.2.1 Functions

The main function or role of personnel manager and Administration manager

i. Advisory Role: Industrial psychology and Sociology.

38
 ii. Operative and Service role.
iii. Conciliators Role.
iv. Specialist advisory Role.
a. Formulation of HRD function and suggesting the HRD needs of
the organization.
b. To find out ways and means of implementation of HRD Function.
c. Monitoring the HRD activities of the organization.

3.2.2 Role of HR Manager

a. To create necessary infrastructure for HR development activities.

b. To lease with HR manager in identifying areas for HR development.
c. To arrange proper placement to trained employees.
d. To activate association and employees to take part in HR development
activities which are beneficial to both employee and Management.
e. To monitor utilization and effectiveness of HR development training.
Criteria for Evaluation of Managerial and Supervisory Level

a. Conceptual skills - Innovation, creativity

b. Decision making skills - Analysis problem solving
c. HR skills - Motivation, communication, built team spirit
d. Organizing skills - Organizing on work and other work

3.2.3 The Activities Normally Associated with this Department are:

a. Human Resource Planning

Human resource planning is understood as the process of

forecasting an organization future demand for, and supply, of the right type
of people in the right number. In Kitex Ltd, The concerned department is
always updating the list of people (after all preliminary formalities).

39
 b. Recruitment

Recruitment is a process of searching for and obtaining applicants for

jobs from among whom the right candidate can be selected. Recruitment
process is done after the job analysis and job design which specifies the taste
and duties of job and qualification expected from the respective job holders.

In Kitex Ltd, the personnel and administration department have a clear

cut recruitment planning. For this they give advertisement in newspaper and
other medias. After collecting all application, department sorts these
application and call up the right candidate for the interview. This process
comprises of 5 interrelated stages. They are:

i. Planning
ii. Strategy Development
iii. Searching
iv. Screening
v. Evaluation and control

In Kitex Ltd, internal recruitment also takes place. This includes

present employees, employee referrals, formal employees and former
applicants. For the recruitment of office staff and managerial personnel,
external sources like advertisement in newspapers, employees weekly etc are
used. Other sources are advertisement in company website, employee
references and resumes of the candidates which the company passes. While
selecting the weaver trainees and helpers, qualification along with sufficient
experience in the industry is also required. They can directly appear for
interview. Sometimes selection order is on the basis of the recommendation
from the known person. For skilled jobs like fitter, electrician, instrument
technician, jobber etc. Information is passed through advertisement. For this,
experience in respective field is good advantage.

40
 v. Interview And Selection

The selection is made through direct interview with references of

application. There is no specializing interview board for the company. Those
who have applied for skilled posts will have to appear for skilled tests. By
recommendations and proper reference also employees were selected.

vi. Selection Procedure

A person before being appointed to any levels of management a

thorough analysis of post is to be done. Through print media, various
vacancies are informed to prospective candidates.

vii. Training and Development

Employees are given proper training and development after they have
been recruited, selected and induced. The company gives training to develop
and increase skills for performing a specific job for each trainee. The company
also assures education through companies own community college to
increase general knowledge and to understand total environment.

viii. Performance Appraisal

Yearly evaluation of performance is done for the employees. The

evaluation criteria for the managerial and supervisory levels are:

a. Conceptual skills ability

b. Decision making skills ability
c. HR skills ability
d. Organizational skills ability

41
 e. Personal characteristics
f. Job ability
g. Integrity and honesty.

ix. Employee Remuneration

Remuneration insisted by the Government of India and Government of

Kerala includes

a. Wages and salaries

b. Incentives

The elements of companies employee reward is as BP + HRA + DA +

Children education allowance

Bonus

Based on previous year’s profit, 8.33 % - 20 % is given as bonus every

year. Gratuity is paid to employees who have completed 5 years of service

a. Statutory Rules for Employees

EPF, ESI, Medic-Claim insurance and maternity benefit also provided

for employees

b. Leave Rules

Earned leave is calculated at one leave per 20 days and it will be less
than15 days per year. In addition to casual leave, 16 annual holidays

c. Shifts

The company is undertaking production on job order basis. The

production department works in 3 shifts

d. Ambulance and Bus Facilities

42
 Company has its own ambulance for emergency use for both workers
and public medical facility in the organization is also good

e. Drinking Water Facilities

Water coolers are installed in the company where ever necessary for
the employees. This company is very cautious about the health of their
employees who faithfully work for their company. Employees strictly agreed
that drinking water provided by the organization is very good.

f. Employee Welfare Measures

In India labor welfare measures can be divided in to statutory welfare

measures and non-statutory or voluntary welfare measures.

a) Statutory Welfare Measures

a. Accident Benefit
If the employee, who is covered under the Employee State Insurance
Scheme (ESI), during the works, suffered with an accident he will be paid as
per ESI scheme. If the employee is not covered under ESI, the company will
meet all expenses and grant him special leave in case of any accident. A
group accident policy is also taken by the company by which all the employees
will be benefited.

b. Annual Bonds
The company pays annual bonds to its employees based on the
company’s performance in the previous year. 8.33% to20% of the profit is
given as bonus every year.

c. Canteen
The company has separate canteen for male and female employees.
For drinking water, coolers are also installed in the company wherever
necessary.

43
 d. Gratuity
Kitex Ltd maintains a gratuity scheme for its employees who have completed 5
years of experience including training period.

e. Provident Fund
The company contributes 12.5% in the employee P.F scheme.

b) Voluntary Welfare Measures

a. Attendance Allowance
b. Uniform Allowance
c. Children’s education allowance
d. Free tea and coffee for office staff
e. Funeral expenses on the death of family members of the employees
f. Saving schemes for employees
g. Stands as guarantee for the employees to buy vehicles and house
holder on hire purchase
h. Leave- Earned leave for 15days is granted to employees. Maternity
leave of 12weeks is granted to the female employees
i. Free accommodation is granted to female employees
j. Night shift allowances and OT allowance
k. One day tour program is conducted once in every 2 years
l. Health and Safety measures.

g. Hostel

In Kitex Ltd, organization provides separate hostel facilities for the ladies
and gents. It includes canteen, accommodation, and entertainment facility. For
the purpose of administration of ladies hostel, organization has appointed a
hostel warden and two assistant warden and hostel staff. In every weekend
the P&A manager or personnel officer visits and check the facilities and

44
function of the hostel. Also the department conducts performance appraisal
and annual day celebration for the employees.

h. Security Department

For the security and discipline of Kitex Ltd, the organization provides a
security department under the P & A Department. This includes a security
officer and staff. The main function of the security officer is to check the
baggage and carriers coming into the organization and the products delivered
from the packing section. The security department marks in the register the
quantity of the product, place, time etc.

i. Trade Unionism

There are companies which are non- unionized. Kitex Ltd is such a
company. In Kerala we can see a lot of trade unions and problems created by
them. In this case this is great privilege for the company as a union free
company. This is maintained in Kitex through good employee relation.

j. Industrial Relation

Industrial relation is concerned with the relationship between

management and workers. In Kitex Ltd and all other Anna group of companies
the management is very conscious about maintaining good industrial relation
between management and workers and the role of regulatory mechanism
helps in resolving any industrial dispute.

k. Promotion

Promotional activities contribute to the employee’s satisfaction and

motivation. If mishandled it leads to discontentment, frustration among
employees and culminates in a high rate of labor turn over. In Kitex Ltd within
the limitation the personnel department, it lays down a sound promotional
policy and ensures its implementation.

45
 l. Transfer

Transfer involves a change in the job (accompanied by the change in

the place of the job) of an employee without change in responsibilities or
remuneration.

m. HRD Services
HRD activity is undertakes in an integrated manner. It is one of the several
organizational process evolved to cope with the changing environment and to
maintain the organization at its best. The focus is on the overall development
of a personality rather control. Their responsibility starts right from recruiting
the right person at right place at the right time till the retirement. It also
includes training and development, provision for good working conditions up to
retirement plans.

3.2.4 HRD Department of the Company is Based on Three Aspects:

a. Competency Building
This is usually done by three ways like, improving the knowledge of
employees and creating the right attitude in the mind of them. For this they will
be given training and development programs.

b. Culture Building

It is having a great importance, as right culture will create employee

satisfaction. Every employee of KITEX LIMITED loves to work in the
organization because of good g culture prevailing in the organization.
Culture mainly indicates the good attitude towards employees and vice
versa.

c. Motivation Building

46
 Enhancing the motivation of employees and thus enabling the organization
to achieve its goals is another inevitable function of this department. The
employees are being motivated by providing various monetary benefits and
also morale boost like promotion etc. Industrial relations are yet another major
area coming under HRD department. And also good relationships are
maintained within the organization.
d. Payment of wages and salaries

The employees other than the office and plant workers come under the
piece rate system. 80 % of the workers are under the system in which the
payment is made according to the quality produced on monthly basis. Salary is
paid along with payment slip which contains the details of the pay. A copy of
the pay slip is signed by the employee. When he recollects the salary, it will be
filled on this department

e. Standing Orders

According to the Industrial Employment (Standing Orders) Act, 1946,

the company has a proper standing order to make explicit conditions of work
and employment and also to ensure uniformity of the same for all workers.

47
Fig 3.5 Structure of Personnel and Administration Department

General Manager

Manager(Per Manager(Adm)
sonnel)

Security
Welfare Front Office Time Steno Chief
Officer Executive Officer graph
er
Security
Office Office Asset Guards
Asst.
Construction
Workers

Asst. Hostel Canteen

Canteen Drivers
Manager Warden Supervisor
(Training) Supervisor
(Gents)
(Ladies)
Asst. Warden
Office Asst. Supervisor
Asst. Asst. Supervisor

Cook Helper
Cook Helper

48
3.3. MARKETING DEPARTMENT

Marketing is the activity through which a company is able to generate

the revenue for the functioning of the organization. Kitex Ltd. Has got a very
good marketing department controlled by efficient and dynamic marketing
manager. Marketing manager reports to General Manager and Managing
Director. Marketing department is divided in to three such as Marketing
(Greige fabric), Marketing (finished fabric / bags) and Advertising and Sales
Promotion. Under each section, Assistant Managers, Marketing Executives,
Sales Executives and Sales are there to assist him

Kitex markets its processed products like lungies, dhothies, bed sheets and
mulls etc… mainly through dealers. Almost all Kitex products are available at
the dealer shops. The products are transported to the dealers by deliver vans.
Sales Executives take orders of different items from the dealers once in a
month

The company is having 1000’s dealers spread all over Kerala. In Greige
market, garment manufactures all 54rrffover India use various textile sorts
manufactured by the company. The company is selling their Greige fabrics as
such to various garment exporters to Mumbai, Bangalore, Delhi, Chennai,
Calcutta, Ahmadabad etc… 75 % of the sale is done through authorized
agents on commission basis and balance is through Direct Marketing. The
garments manufactured by the group under the brand name Kitex are
accepted all over the world.

Marketing manager is the one who decides the marketing strategies for
every major decision, which effects marketing. But while making some
strategic and important decisions, approval of the Managing Director is
required

49
 After collecting the orders, Marketing Managers forward their order to
Production Department. Marketing Manager and Production Manager sits
together and decides the production plan

3.3.1 Marketing Policy

This company has a strategic marketing policy. The company mainly

targets its customers and promotional activities are based on the above
aspects. The company doesn’t entertain any middle man. They deal directly
with their dealers. The company is following a hierarchical channel of
distribution.

Company

Dealers

Consumers

3.3.2 Marketing Function

Kitex has a dealer’s network of more than 2500 dealers spread all over Kerala.
The sales of customer goods are concentrated on Kerala, Tamilnadu, and
Karnataka. In addition the company has direct outlets in Kerala and
Tamilnadu. Dealership is allotted only after assessing the credit worthiness,
efficiency, and the products are delivered through the van of the company
either at the dealers goes down or at the dealer’s show room. The company is
selling their Greige fabrics as such to various garment exporters to Mumbai,
Bangalore, Delhi, Chennai, Calcutta etc. 75 % of the sales is done through
authorized agents on commission basis and balance is through direct
marketing. The garments manufactured by the group under the brand name
KITEX are accepted all over the world.

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 3.3.3 Marketing Strategies

The marketing department is one of the efficient and effective

departments in Kitex. This department is always vigilant about its environment
and very conscious about the market potential, major competitor’s strategies,
weaknesses etc. Maintaining the efficiency and effectiveness the top
management appointed a General Manager for marketing department. The
present GM (marketing) is an experienced management professional.

In the case of all major companies, the margin is very high when they
sell their products to dealers. However, in the case of Kitex Ltd the margin is
comparatively low. The major problems of competitor’s products are poor
quality, poor color dyeing etc. Compared to other products, most customers
choose Kitex brand because of its high quality despite of it’s a bit high pricing.

Kitex products achieved the maximum market share in the period if

festivals like Onam, Christmas, Ramzan and Vishu. In normal case, profit
margins of the products are 15% to 20%.In the case of technical competence
Kitex introduced new automatic waving suzion looms, which are imported from
Switzerland. The only competitor having this type of technology is Janson. The
quality, usage and brand image of Kitex products in the market is very high.

3.3.3.1 Market Segmentation

Marketing consist of buyers of different in one or more aspects. They may

differ in their wants, purchasing power and geographical location, buying
attitudes and buying practices. Any one of the variables can be used to
segment a market. The market segmentation procedure of Kitex mainly
focuses on survey.

The marketing manager conducts the survey process. The staff of R&D
department is responsible for it. It includes informal interview, with focus group
of consumers to gain insight in to their motivation, attitude and behavior using

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their findings, the researcher prepares a formal questionnaire which is
administered to sample of customer to collect data on:

a) Attributes and the important rating.

b) Brand awareness and brand rating.
c) Product usage pattern.
d) Demographic, psychographic and media graphic details of respondents.

3.3.3.2 Co-Ordination of Marketing Activities

All Sales Executives are directed to report to the Assistant Managers

(sales) every day. The Assistant Manager and the Marketing Manager are in
constant touch with all Sales Executives who are in the field. All Sales
Executives are expected to submit the Daily Sales Report (DSR) on all
Mondays. On all Mondays there is a meeting of all personnel in Marketing
Department preceded over by the General Manager. In this meeting all the
activities and achievements of the departments are discussed, new plans and
strategies to increase sales are formulated and other issues connected with
marketing are discussed.

Show Rooms

The company has showroom sales in addition to sales to its authorized

dealers and franchisees. There are about 20 show rooms speeded all over the
major towns in Kerala.

Customers

The companies customers are average and above average income

earners. Agriculturalists constitute a large portion of the customers

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 3.3.3.3 Pricing Strategies

a. Prestige pricing
b. Penetration pricing
c. Price skimming
d. Price lining
e. Dual pricing

3.3.3.4 Price Mix

Price is one of the important elements of marketing mix which has bearing as
a company and its corporate. A well formulated pricing policy provides
guidelines to the marketing manager to enroll appropriate pricing decision. The
company follows skim pricing. The company’s products are premium priced.

Kitex Ltd follows stabilized pricing policy. The company has maintained stable
price for a long period. Price of the product depends upon the price of the
yarn. The reputation of the firm has helped to maintain growth in demand and
hence requires lesser investment in advertisement and promotion.

3.3.3.5 Place Mix

The unit of Kitex ltd is located in Kizhakkambalam, Aluva. The company uses
their own distribution channel for supply. The orders were taken by the agents
and according to the order supply will be done on the time suggested by the
dealer. The company also sells through their own factory outlets.

3.3.3.6 Promotion Mix

Kitex mainly uses advertisement to promote its products. The basic function of
advertisement is to influence and motivate people to buy products. Various
advertisement agencies are called up and given brief idea about what to
advertise and the agencies prepare a pre-demonstration. After submitting the
copy of the same to the company the advertisement manager, marketing

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manager, general manager marketing and general manager direct analyze
there and select the best among them and entrust the agencies for drawing
up and covering out with their advertisement plan. Then comes the media
selection. Kitex chooses the following media:

T.V : D.D, Asianet , Surya

Video ads : C.E.E videos, SAN videos

Closed circuit TV : K.S.R.T.C,, Railway station

Print media : All dailies ,Vanitha, Grihalakshmi,etc.

Demonstrations and sponsors events

Banner, metal board, wallpaper etc.

In addition, the customer gets valuable information from company’s website.

www.annaaluminium.in

Kitex-Stages in the Product Development Process

 Idea research

 Screening analysis

 Product development

 Market testing

 Commercialization

Kitex- Stages in the Product Life Cycle

 Introduction

 Growth

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 Maturity

 Decline

Pricing Strategies

 Prestige pricing

 Skimming pricing

 Penetration pricing

 Price lining

 Dual pricing

Fig 3.6 Marketing Department Structure

Chairman & Managing Director

General Manager

Manager
Manager Manager (Processed (Advertisement &
Fabrics) Sales Promotion)

Assistant Manager Assistant Manager

Assistant Manager

Marketing Marketing Executive Media Art

Executive

Sales Executive
Sales Executive

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 3.3.4 Purchase Department

The Purchase department plays a very important role in the company

and it has its effect on every vital factor concerning the manufacture, quality,
cost efficiency, and prompt delivery of goods to customers. Its function is to
procure materials, supplies, services, machines, and tools favorable terms
consistent with maintaining the desired standard of quality. Purchasing is the
important function of materials management as the moment an order is placed
for materials a substantial part of the companies finance is committed which
effects cash flow position of the company.

The company is having a centralized Purchase department headed by

the purchase manager. He is assisted by 2-purchase officers and an office
assistant. Mr.Venugopal is The Purchase manager of Kitex Limited he is
assisted by two purchase officers and an office assistant. the Purchase
manager reports to the General Manager and Managing Director. the
Purchase manager coordinates the entire purchase activities. In case of local
purchase or minor items which are frequently required, it is the responsibility of
the purchase officers to ensure the timely procurement of materials as the
purchase requisitions issued by the stores when the items of materials have
reached the re-ordering level.

The basic objective of setting up a separate purchasing department is

to ensure continuous availability of quality materials, so that production is not
held up and reduce the cost of finished product according to their proper plan.

3.3.4.1 Duties and Responsibilities of Purchase Manager

1. To make continuous availability so that there may be uninterrupted flow

of material for production.

2. To make purchase competitive and price at the most economical form.

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3. To make purchase in reasonable qualities to keep investment in
material minimum.

4. To purchase proper quantity of material to have minimum possible

wastage of material and loss in production.

5. To develop alternative source of supply so that material can be

purchased from those alternative source if particular supplier fails to
supply the material.

6. To adopt the most advance method of purchase to ensure smooth

delivery of material from supplier and to avoid the risk of any dispute
and financial loss.

7. To serve as an information Centre on the material knowledge relating to

purchase, source of supply specification and mode of supply.

3.3.4.2 Factors Considering While Selecting Supplier

1. Manufacturing capacity.

2. Reliability of suppliers.

3. Financial condition of the suppliers.

4. The management of supply firms.

5. Price quoted.

6. Terms of payment

7. Terms of delivery.

8. Specification to which products are manufactured.

9. Quantity for which price quoted is applicable.

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Materials Purchased

The following are the major items of materials purchased by the company.

1. 100% cotton yarn of different specifications.

2. Sizing chemicals alpenol, tapioca starch, adhesives etc….

3. Loom Spares.

4. Electrical equipment and accessories.

5. Packing materials and office stationary.

The company is having a centralized system of purchases .almost all

purchases are managed by the purchases department and controlled by the
top management. Purchase officer assist the purchase manager. They co-
ordinate the entire purchase activities. In the case of local purchases or minor
items, which is frequently require, it is the responsibility of purchase officer to
ensure timely procurement of materials. The purchase department purchases
the materials as per the purchase requisitions issued by the stores when the
items of materials have reached the re-ordering levels.

Purchasing Procedure

1. Identifying the materials

2. Exploring the sources of suppliers.

3. Issuing purchase order.

4. Receiving and inspecting materials.

5. Checking and passing of Bills for payment

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3.4. FINANCE DEPARTMENT

Finance is the life blood of business. Finance department consists of all

the managerial activities of raising funds and effective utilization. Finance
department lies in decision making area of investment, finance and dividend.
Recruitment and promotion in production are the activities of H.R Department.
But it requires the payment of wages, salaries and other benefits; these are
done by finance department. Finance manager is the head of finance in Kitex.
He decides when and where to acquire funds to meet firms investment needs.
He should determine the proposition of equity debt. The finance department
should strive for obtaining the optimum capital structure for the organization.

3.4.1 Functions of Finance Department

The activities expected from a finance department cover a wide range

from basic bookkeeping to providing information to assisting managers in
making strategic decisions. What to expect from your finance department will
depend largely on factors such as how much involvement the owner/manager
has in the organization.

At the base level, your finance department will be responsible for all the
day to day transactional accounting for the business. This will include the
tracking of all transactions and the management of any government reporting.
In very small owner-managed businesses this role is often filled by a family
member with accounting experience. An outside accounting firm is usually
used for annual financial statements and returns. In larger organizations this
role will extend right through to preparing the financial statements with an
external auditor engaged for assurance purposes.

The finance department is also responsible for management of the

organization’s cash flow and ensuring there are enough funds available to

59
meet the day to day payments. This area also encompasses the credit and
collections policies for the company’s customers, to ensure the organization is
paid on time, and that there is a payment policy for the company’s
suppliers. In most organizations there will be some form of forecast prepared
on a regular basis to systematically calculate the on-going cash needs.

Where there are cash needs beyond the day to day working capital, the
finance department is responsible for advising and sourcing longer term
financing. Financing may be obtained through bank or private lender debt or,
in applicable firms, share issues to private investors. If the organization is
ready to target angel investors or venture capitalists the finance department
will be key in preparing the documents required for these presentations and
may work with outside consultants on a company valuation. In larger firms
considering public share offerings the finance department will assist with the
preparation of the offering documents but will likely also use outside
consultants to advise on this complicated process.

With the must-do’s taken care of, the finance department can now start to
contribute to the management and improvement of the operations by
measuring and reporting regularly on key numbers crucial to the success of
the organization. Management accounting information is information that
managers can use to monitor the operations and decide where further
attention may be required.

Looking forward, the finance department will work with managers to

prepare the organization’s budgets and forecasts, and to report back on the
progress against these throughout the year. This information can be used to
plan staffing levels, asset purchases and expansions and cash needs, before
they become necessary. Some organizations often ‘plan’ by the seat of their
pants, while organizations know it is important to have some idea of where you
want to go before you start going there.

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 In summary, some organizations know the finance department should be
considered a resource to assist managers in the running of the business. With
the growing popularity of outsourced finance departments, it is possible for
even small businesses to have access to all of the benefits of a full finance
department, through part time professionals, at a fraction of the cost of
employing a full time finance department.

a. Recording day to day business transaction – accounting

b. Preparation of various statements regarding stock, receivables
etc…which are to be submitted to various authorities like
bankers, insurers etc…
c. Planning and controlling of the expenses or funds for production
d. Approving and making payments to different parties or creditors
or suppliers
e. Receiving payments from customers or dealers in specific time
f. Raising short term loan or credit from bank and other financial
institutions
g. Preparation of sales budget or revenue budgets and
expenditure budgets on a quarterly basis
h. Preparation and maintenance of costing records
i. Preparation of fund flow and cash flow statements every month
j. Timely preparation and filling of financial reports and records
k. Preparing and filling of quarterly and financial income tax
returns
l. Preparation and implementation of cost reduction and cost
control programs

In addition to the above mentioned works, the following reports prepared by

the finance department

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a. Annual reports containing past performance and current financial
figures
b. Profit and loss account
c. Balance sheet
d. Fund flow statement
e. Cash flow statement
f. Cost sheet
g. Cost variance report
h. Bank reconciliation statement
i. Comparative statements
j. Budget reports etc…

3.4.2 Functional Areas of Financial Department in Kitex

a. Determine financial needs
b. Determining sources of funds
c. Financial analysis
d. Optimal capital structure
e. Cost volume profit analysis
f. Profit planning and evaluation
g. Capital budgeting

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 Fig 3.7 Structure of finance Department

Chairman & Managing

Director

General Manager

Manager (Finance) Manager (Accounts)

Assistant Manager Assistant Manager

Executive (Bank) Executive (Data

Executive Executive
Entry) (Tax) (Central Excise)

Cashier

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 CHAPTER 4

SWOT ANALYSIS

The basic objectives of SWOT Analysis is to provide a frame work

to reflect on the ability to overcome barriers and to avail of opportunities
emerging in the changing environment, the diagnosis of strength and
weakness can be fruitfully on if the environment factors and market conditions
are considered always with the internal capabilities.

SWOT analysis is important tool to find strength, weakness,

opportunities and threats. These factors reveal the internal and external
factors which affects the company. Strength, weakness, opportunities and
threats are the elements or key factors that influence the survival and
development of any organization. The followings are the SWOT analysis of
Kitex Ltd.

4.1. STRENGTH

1. Largest manufacturer of textile products in Kerala

2. Pioneers in their segment as a brand

3. Effective distribution channel

4. Products are benchmark for other company

5. Better employee-employer relationship

6. No trade union

7. ISO certification

8. Highest market share for lungies.

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4.2. WEAKNESS

1. Lack of modern weaving machines and quality checking machines

2. Untrained employees.

3. Huge variations in the incentives with change in season

4. The organization does not have any ERP in place.

5. Non utilization of full capacity.

6. Less usage of modern ways of transaction

4.3. OPPORTUNITIES

1. India with large cotton cultivation has a great scope in textile market

2. Growing market demand

3. Increase opportunities in export market due to globalization

4. Availability of land for expansion

5. Expansion to rural areas.

4.4. THREATS

1. Sales of some products depend up on seasons

2. Presence of reputed competitors in the market

3. Kitex faces a great threat from China in the textile market

4. Implementation of technology

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5. Efficiency is low with the use of old machineries

6. Medium market coverage

7. The time taken to change with customers

8. This generation moving towards tracks, paijamas and bermudas

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 CHAPTER 5

FINDINGS AND SUGGESTIONS

5.1. FINDINGS

I am able to find out areas of strength, opportunities, weakness and

threats of company. It also helps me to know more about the industry with the
new scope and trends. It also helps me to familiarize with various policies
adopted by company Kitex ltd for their success. This company has a good
market in both inside and outside the country. Their customer service is an
important one. Kitex Ltd is more concentrating the quality of their products.
This practice is the success behind their triumph.

Today’s life, people are more concentrating quality and price. Most of
the customer’s belonging to middle class family. Majority of the people living in
our country are from middle income group. In my understanding, my major
findings are

a. Kitex textile products have great demand in Kerala

b. The Kitex customers have better brand loyalty
c. Kitex is more familiar in the middle aged people
d. MCR is the nearest competitor for Kitex dhothies in the market.
e. Kitex ltd provides good facilities for their employees.
f. There is no trade union exist in the organization because of the
good relationship between employees and management.
g. Majority of the workers are women.
h. Can venture into more and more textile products as the
distribution channel is strong
i. The unavailability of local work force
j. The factory is situated at an ideal place
k. The dealer-factory interaction is strong

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5.2. SUGGESTIONS

a. Provide risk free and modern methods of money transaction

b. Give sufficient training to the employees
c. Increase the promotional budget in the form of scratch &win, Buy one
Get one in the Dhoti & inner wear segment to increase the market
share.
d. Promote quality circles
e. Provide more employee empowerment
f. Expand the distribution to rural areas also
g. Complete the computerization process
h. Introduce more modern looms

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 CHAPTER 6
CONCLUSION

The study was conducted at Kitex Ltd, Kizhakkambalam, Aluva. The

project work titled ‘organizational study’ was an attempt to study about the
organizational structure and the department functions and to make some
recommendations and suggestions for the improvement and development and
smooth functioning of the organization. The data with regarded to the study
collected from the Kitex helps to understand the process of production of
textiles. Each department in Kitex was analyzed by me and I came to know
that various processes are controlled and monitored under skilled supervision
and hardworking workers.

The study has given information about the manufacturing process,

different product; organizational structure of the company, departmental
functions and gives a good knowledge about the market position of the
company. The co- operation and interaction extended by the employees and
management of Kitex have made it possible for the depth organizational study
which would be used to the research in the future.

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 BIBLIOGRAPHY

 Company Profile.

 Company Manuals.

 Production Management (Aswathappa).

 Production Management (Edwin.b. Flippo)

 Marketing management ( Philip kotler)

Websites

 www.textileindustry.com

 www.annaaluminium.com

 www.kitexltd.com

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