1.1.

INTRODUCTION TO THE STUDY

This study is conducted to examine the functioning of an organization. The organization which I chosen for my organization study is KERALA LAKSHMI MILL pullazhi ,Yarn manufacturing company. The textile sectors closely linked with agriculture, hand looms, power looms and garment and a number of ancillary industries and trade, thus touching everyday life of the common man. It provides employment to many millions like cotton growers, processors, hand loom and power loom weavers etc. The Kerala Lakshmi Mill is situated at Pullazhi in Thrissur District. This mill was promoted by Late Shri. Karimuthu Thyagaraja , and was incorporated in 1961 , but started production only in 1963 .Now Kerala Lakshmi Mill is a public limited company , and a subsidiary of National Textile Corporation (N.T.C).

1.2. OBJECTIVES OF THE STUDY

To acquire knowledge about the functioning of various departments. To know about the products and their uses and quality. To know about the textile industry. To have an exposure to the real working of the unit. To identify the problems of the organization.

1.3. SCOPE OF THE STUDY

The study helped to understand the practical sides of the theories that have been taught. This study describes the history, genesis, activities and achievements of KERALA LAKSHMI MILLS. The study covers information on the present organizational system of KERALA LAKSHMI MILLS. This information can help in better understanding of the firm, its policies and strategies. The study gives hints on how effectively an organization can design its functional areas and how they can be constructed to improve organizational effectiveness.

1.4. RESEARCH METHODOLOGY

To define any research problem and give a suitable solution for the problem a sound research plan is inevitable. Research methodology underlines the various steps involved by the researcher in systematically solving the problem with the objective of determining various facts In this study the data were collected through primary and secondary sources. Primary data are the data which are collected for the first time for the purpose of enquiry in hand. It is done by the person himself. Secondary data refers to the data, which have been collected by some other persons and the investigator uses it.

Primary Data The source of primary data was Direct Interview with staff and employees. Direct Observation in the organization.

Secondary Data The source s of secondary data was Records and reports of the company. Product brochures. Internet.

1.5. RESEARCH DESIGN

The study is descriptive in nature and this is an attempt to evaluate the performance of the company by studying the management function of the different departments and marketing activities of the company.

1.6. LIMITATIONS OF THE STUDY

Time factor is an important limit of the study. It is not possible to get all the information from the company. The study does not include the financial statements of the company Due to lack of time and busy work, employees could not reveal more information.

2.1. INDUSTRY PROFILE

2.2. Introduction
The Indian textile industry has a significant presence in the economy as well as in the international textile economy. Its contribution to the Indian economy is manifested in terms of its contribution to the industrial production, employment generation and foreign exchange earnings. It contributes 20 percent of industrial production, 9 percent of excise collections, 18 percent of employment in the industrial sector, nearly 20 percent to the countrys total export earning and 4 percent to the Gross Domestic Product.

2.3. History of Indian Textile Industry

India has been well known for her textile goods since very ancient times. The traditional textile industry of India was virtually decayed during the colonial regime. However, the modern textile industry took birth in India in the early nineteenth century when the first textile mill in the country was established at fort Gloster near Calcutta in 1818. The cotton textile industry, however, made its real beginning in Bombay, in 1850s. The first cotton textile mill of Bombay was established in 1854 by a Parsi cotton merchant then engaged in overseas and internal trade. Indeed, the vast majority of the early mills were the handiwork of Parsi merchants engaged in yarn and cloth trade at home and Chinese and African markets. In the 13th century, Indian silk was used as barter for spices from the western countries. Towards the end of the 17th century, the British East India Company had begun exports of Indian silks and
4

various other cotton fabrics to other countries. These included the famous fine Muslin cloth of Bengal, Bihar and Orissa. Painted and printed cottons or chintz was extensively practiced between India, China, Java and the Philippines, long before the arrival of the Europeans. The cotton textile industry made rapid progress in the second half of the nineteenth century and by the end of the century there were 178 cotton textile mills; but during the year 1900 the cotton textile industry was in bad state due to the great famine and a number of mills of Bombay and Ahmadabad were to be closed down for long periods. The two world War and the Swadeshi movement provided great stimulus to the Indian cotton textile industry. However, during the period 1922 to 1937 the industry was in doldrums and during this period a number of the Bombay mills changed hands. The Second World War, during which textile import from Japan completely stopped, however, brought about an unprecedented growth of this industry. The number of mills increased from 178 with 4.05 lakh looms in 1901 to 249 mills with 13.35 lakh looms in 1921 and further to 396 mills with over 20 lakh looms in 1941. By 1945 there were 417 mills employing 5.10 lakh workers. The first cotton mill in Ahmadabad, which was eventually to emerge as a rival centre to Bombay, was established in 1861. The spread of the textile industry to Ahmadabad was largely due to the Gujarat trading class. The partition of the country at the time of independence affected the cotton textile industry also. The Indian union got 409 out of the 423 textiles mills of the undivided India. 14 mills and 22 per cent of the land under cotton cultivation went to Pakistan. Some mills were closed down for some time. For a number of years since independence, Indian mills had to import cotton from Pakistan and other countries. After independence, the cotton textile industry made rapid strides under the Plans. Between 1951 and 1982 the total number of spindles
5

doubled from 11 million to 22 million. It increased further to well over 26 million by 1989-90.

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. Till the year 1985, development of textile sector in India took place in terms of general policies. In 1985, for the first time the importance of textile sector was recognized and a separate policy statement was announced with regard to development of textile sector. In the year 2000, National Textile Policy was announced. Its main objective was: to provide cloth of acceptable quality at reasonable prices for the vast majority of the population of the country, to increasingly contribute to the provision of sustainable employment and the economic growth of the nation; and to compete with confidence for an increasing share of the global market. The policy also aimed at achieving the target of textile and apparel exports of US $ 50 billion by 2010 of which the share of garments will be US $ 25 billon.

Current Position of Indian Textile Industry

Textile constitutes the single largest industry in India. The segment of the industry during the year 2000-01 has been positive. The production of cotton declined from 156 lakh bales in 1999-2000 to 1.40 lakh bales during 2000-01. Production of man-made fibre increased from 835 million kgs in 1999-2000 to 904 million kgs during the year 2000-01 registering a growth of 8.26%. The production of spun yarn increased to 3160 million

kgs during 2000-01 from 3046 million kgs during 1999-2000 registering a growth of 3.7%. The production of man-made filament yarn registered a growth of 2.91% during the year 1999-2000 increasing from 894 million kgs to 920 million kgs. The production of fabric registered a growth of

2.7% during the year 1999-2000 increasing from 39,208 million sq mtrs to 40,256 million sq metres. The production of mill sector declined by 2.6% while production of handloom, power loom and hosiery sector increased by 2%, 2.7% and 5.1% respectively. The exports of textiles and garments increased from Rs. 455048 million to Rs. 552424 million, registering a growth of 21%. Growth in the textile industry in the year 2003-2004 was Rs. 1609 billion and during 2004-05 production of fabrics touched a peak of 45,378 million square meters. In the year 2005-06 up to November, production of fabrics registered a further growth of 9 percent over the corresponding period of the previous year.

2.4. PROBLEMS FACED BY THE 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 incidence of sickness. As many as 125 sick units have been taken over by the Central Government. Sickness is caused by various reasons like the problems mentioned below. Obsolescence: The plant and 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 modernisation 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 modernise their equipment.

Government Regulations: Government regulations like the obligation to produced controlled cloth are against the interest of the industry. 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.

Low Yield and Fluctuation of Cotton Output:

The cotton yield per hectare of land is very low in India. This results in high cost and price. Being largely dependent on the climatic factors, the total raw cotton production is subject to wide fluctuation causing serious problems for the mills in respect of the supply of the raw material.

Competition from Manmade Fibers

One of the serious challenges facing the cotton textile industry is the competition from the man-made fibres and synthetics. These textures are gradually replacing cotton textiles. This substitution has in fact been supported by a number of people on the ground that it is not possible to
8

increase substantially the raw cotton production without affecting other crops.

Competition from other Countries:

In the international market, India has been facing severe competition from other countries like Taiwan, South Korea, China and Japan. The high cost of production of the Indian industry is a serious adverse factor.

Labour Problems:
The cotton textile industry is frequently plagued by labour problems. The very long strike of the textile workers of Bombay caused losses amounting to millions of rupees not only to the workers and industry but also to the nation in terms of excise and other taxes and exports.

2.5. Strengths of Indian textile Industry

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 fibres like polyester, silk, viscose etc.

India is rich in highly trained manpower. The country has a huge advantage due to lower wage rates. Because of low labour rates the manufacturing cost in textile automatically comes down to very reasonable rates.

India is highly competitive in spinning sector and has presence in almost all processes of the value chain.

Indian garment industry is 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.

2.6. Weaknesses of Indian textile Industry

Indian textile industry is highly fragmented in industry structure, and is led by small scale companies. The reservation of production for very small companies that was imposed with the intention to help out small scale companies across the country, led substantial fragmentation that distorted the competitiveness of industry. Smaller companies do not have the fiscal resources to enhance technology or invest in the highend engineering of processes. Hence they lose in productivity.

Indian labour laws are relatively unfavourable to the trades and there is an urgent need for labour reforms in India.

India seriously lacks in trade pact memberships, which leads to restricted access to the other major markets.

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2.7. COTTON TEXTILE INDUSTRY IN KERALA

The textile industry in Kerala is the oldest and occupies a key position in the state economic development. In Kerala there are about 24 cotton textile mills (excluding NTC). The earliest known registered factory is the Malabar Spinning & Weaving Company at Ponnanikara in Calicut started in 1884. The second important textile unit set up in the state was Quilon Spinning Mills. The Kerala State Textile Corporation was incorporated in 1972 with the objective of promoting textile industry and assisting sick mills. Though Kerala has a number of cotton textile mills, the raw materials i.e. cotton is not widely cultivated here. It is either obtained from other states or imported from outside India. The climatic condition of Kerala frequently changes, so suitable arrangements are made in factories to maintain the desired atmospheric condition for the production of yarn. A large number of people get direct employment in the mills and ever a large number get indirect employment. More than 20,000 workers are working in different cotton textile mills in Kerala. Textile Industries in Kerala also suffers from many problems. As stated before, high power cost, high raw material cost, low technology etc are all applicable to textile mills in Kerala. Another major problem is in terms of modernization. This may be viewed from two aspects.

1. Insufficiency of funds for modernization.

11

2. Modernization may involve installation of modern machineries which may bring about a reduction in employment opportunities.

Last, but not the least, the labour problems makes Kerala, the least preferred place for any industry.

In Kerala, there are 31 established textile mills and out of that 17 mills are owned by central and state government, and balance is private owned mills. Out of that 7 mills are situated in Thrissur district. Those mills are as follows:-

A. Kerala Lakshmi Textiles Ltd B. Vanaja Textiles Ltd C. Sitaram Textiles Ltd D. Rajagopal Textiles Ltd E. Co-Operative Spinning Mills Ltd F. Thanikkudam Bhagavathi Spinning Mills Ltd G. Alagappa Textiles Ltd

12

2.8. COMPANY PROFILE 2.9. National Textile Corporation (NTC)

The National Textile Corporation Limited (NTC) is a Central Public Sector Enterprise under the Ministry of Textiles which was incorporated in April 1968 for managing the affairs of sick textile undertakings, in the private sector, taken over by the Government. Starting with 16 mills in 1968, this number gradually rose to 103 by 1972-73.In the year 1974 all these units were nationalized under the Sick Textile Undertaking (Nationalization) Act 1974. The number of units increased to 119 by 1995. These 119 mills were controlled by NTC(HC)Ltd with the help of 9 subsidiary Corporations, with an authorized capital of Rs 10 crores which was raised from time to time and which is now Rs 5000 crores and the paid up share capital of the corporation is Rs 3062.16 crores as on 31.03.2008.

Vision
TO BE A WORLD CLASS ECO-FRIENDLY INTEGRATED TEXTILE COMPANY, TRANSFORMING INTO A HOUSEHOLD NAME THROUGH INNOVATIVE IDEAS AND TECHNOLOGY

Mission
BRAND TO BE THE NATIONS CLOTHIER, BE A NATIONAL PLAYER PROVIDING 1. CLOTHING SOLUTIONS TO NATIONS MASSES. 2. OPPORTUNITY FOR THE NATIONS PEOPLE TO IDENTIFY THEMSELVES WITH A NATIONAL.

13

The Headquarters of the holding company is at New Delhi. The strength of the group is around 22000 employees. The annual turnover of the Company in the year 2004-05 was approximately Rs. 638 Crores having capacity of 11 lakhs Spindles, 1500 looms producing 450 Lakh Kgs. of yarn and 185 lakhs Metres of cloth annually. In the implementation of the Revival Scheme sanctioned for NTC mills, Government has decided to modernize 22 mills by itself through generation of funds from the sale of its surplus assets .The remaining 30 mills requiring heavy dose of modernization, for which NTC did not have adequate resources for modernization after meeting the cost of servicing the Bonds raised and also to quicken the modernization process, private partnership through joint venture was explored for 18 mills. NTC expects to complete modernization of its 22 mills by itself up to spinning activity by March, 2009. Purchase Orders for new machinery have been placed. So far, an amount of Rs.430.00 crores have been spent on purchase of new machinery and renovation of existing working machines, buildings, humidification and

electrification etc. Amongst 22 mills, 4 mills will be modernized by relocation and as a Green Field Project including Udaipur Cotton Mills proposed to be modernized to produce technical textiles (Geo-textiles) After modernization, NTC is projected to produce 600 lakh Kgs. of yarn and 250 lakh Metres of cloth annually with a turnover of more than Rs.931 crores in the year 2009-10.

14

Central-owned National Textile Corporation (NTC) has announced that its three new mills in the states of Karnataka, Maharashtra and Gujarat will start functioning in next three to six months. Establishment cost of these three mills is estimated at Rs.6.5 billion. These mills are being established at Achalpur in Maharastra, Hassan in Karnataka and Ahmedabad in Gujarat. These three mills would have a combined a capacity of 132,000 spindles. It has been expected that by the year 2014 that the total turnover of the company would go up to Rs.20.14 billion as an ambitious plan has been chalked out to fetch that amount of business. Last year, the annual turnover of NTC was Rs.4.8 billion, which will increase up to Rs.5.5 billion this year.

15

Through its 9 subsidiaries the companies under NTC has spread all over India.

Sl. No.

Subsidiary

No of Mills

Head Office

NTC (Andhra Pradesh, Karnataka, Kerala & Mahi) Ltd

16

Bangalore

NTC ( Delhi, Punjab, Rajasthan ) Ltd

New Delhi

NTC ( Gujarat ) Ltd

10

Ahmadabad

NTC ( Madhya Pradesh ) Ltd

10

Indore

NTC (North Maharashtra ) Ltd

13

Mumbai

NTC(South Maharashtra ) Ltd

11

Mumbai

NTC ( Tamilnadu & Pondichery )Ltd

17

Coimbatore

NTC ( Uttar Pradesh ) Ltd

16

11

Kanpur

NTC

(West

Bengal,

21

Kolkata

Bihar & Orissa) Ltd

There are 15 mills under the control of the NTC (A.P, K, K & M) limited at present. They are as follows:1) Minerva Mills 2) Netha Spinning Mills 3) Nataraj Spinning and Weaving Mills 4) Sree Yellamma Cotton, Woollen & Silk Mills 5) M.S.I.K Mills 6) Adoni Cotton Mills 7) Ananathpur Cotton Mills 8) Mysore Spinning & Weaving Mills 9) Azam Jahi Mills 10) Thirupathy Cotton Mills 11) Alagappa Textiles 12) Vijaya Mohini Mills 13) Cannore Spinning & Weaving Mills 14) Kerala Lakshmi Mills 15) Parvathy Mills

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2.10. KERALA LAKSHMI MILLS - PULLAZHI

Kerala Lakshmi Mills is a Govt. Company under public sector. It is situated at Pullazhi in Thrissur District. The mill was promoted by Late. Shri. Karimuthu Thyagaraja Chettiar and it was incorporated in 1961. The production was commenced in 1963 with an installed capacity of 24000 spindles. The capacity was raised to 30960 spindles subsequently. Due to financial and management problems, during the year 1974 the mill was Nationalized by Govt. of India under sick textile Undertaking Act 1974.The management of the mill is vested with the National Textile Corporation Ltd. New Delhi (A govt. of India undertaking) and later with effect from 01/04/1974 it was transferred to its subsidiary company National Textile Corporation (Andra Pradesh, Karnataka, Kerala & Mahe) limited Bangalore. After Nationalization consequent to the implementation of modernization/ expansion scheme the installed capacity was raised to 41328 spindles by 1985. Presently the mill is manufacturing blended yarn in the following counts such as 45sPV, 60sPC, 62sPC. The main raw material Polyester is procured from M/s Reliance Industry Ltd, and M/s Indo Rama Synthesis Ltd and Viscose Fibre from M/s Grasim Industries Ltd, Coimbatore. The raw cotton is mainly purchased from Cotton Corporation of India.

LOCATION
The mill is situated at Pullazhi about 5 Km from Thrissur town.

CAPACITY
The licensed capacity of the mill is 41,520 spindles. The installed and commissioned capacity of the mills is 41,328.

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REGISTERED OFFICE
National Textile Corporation 9 AP, K, K & M Ltd, 3rd floor, Nanjappa Mansion, 29/ KH Road, Shanthinagar, Bangalore 56002795.

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

2.11. FINANCIAL POSITION

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

ORGANIZATION AND MANAGEMENT

The management of Kerala Lakshmi mills is vested in NTC Ltd Bangalore which is the head office of the mills. The holding company of the mill and its head office is NTC Ltd, New Delhi.

2.12. ADMINISTRATION
The chief of the organization is the General Manager who is a technically qualified person who is having sound knowledge and valuable experience in running many textile mills. The persons managing the various departments working under him are also personnel qualified in their respective fields such as financial management, production management and engineering. They are seniour personnel backed by long years of experience in textile work.

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The Kerala Lakshmi Mills is a unit of NTC Ltd. It is a spinning mill. The company is engaged only in the manufacturing of yarn product. Cotton is the main raw material used for the production. The raw materials are supplied by the head office directly and also the sales of the final product are also done by the head office itself. The cotton is purchased in terms of bale. One bale contains 18 Kg of cotton.

2.13. PRODUCT PROFILE

The Kerala Lakshmi Mills is a unit of NTC Ltd. It is a spinning mill. The company is engaged only in the manufacturing of yarn product. Cotton is the main raw material used for the production. The cotton is purchased in bale. 2.14. TYPES OF RAWMATERIALS There are three kinds of raw materials used by the organization. They are as follows. Cotton Polyester Staple Fibre (PSF+ Cotton) Viscose Staple Fibre (VSF + Cotton) 2.15. MAJOR SUPPLIERS OF INPUTS Name of Inputs 1. Cotton Name of Suppliers Grasim Industries,

Kumarapatanam, Hareri District, Karnataka. 2. Polyester Staple Fibre Reliance industries Ltd. J.R. Foods Ltd Campus. Puducheri. 3. Viscose Staple Fibre Indo Rama Synthetic Thirubhuvani.

Private Ltd Nagpur.

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2.16. TYPES OF PRODUCT

The product of the company is textile yarn. Presently the mill is manufacturing blended yarn in the following counts such as 45sPV, 60sPC, 62sPC. The produced yarn is marketed through the market divisions to the consumers in various markets. At present the products are consumed in the Weaving units, Bombay. The quality of the yarn supplied by the company is comparable to International standards. However dew to fluctuation in the market price the company is not able to realize competitive rates. The textile mill is also affected due to the import of fabrics as a result of Globalization. Further, due to the monitory and economic recession the South Asian exporters turn to domestic yarn market, thereby creating get in domestic yarn market and steep trope in selling price. The shortage of working capital and the power supply also affected the performance of the company.

Table showing the count of yarn producing and the ratio of raw material consumed

COUNT 62P/C 60P/C 45P/C

RATIO 75:25 80:20 55:45

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3.1 ORGANIZATION STRUCTURE OF THE KERALA LAKSHMI MILLS GENERAL MANAGER

SPINNING MANAGER

FINANCE MANAGER

PERSONNEL MANAGER

ASM

DSM

ASM (SQC)

STORE KEEPER

HEAD TIME KEEPER

SECURITY OFFICER

CLERK

SUPERVISOR

INVESTIGATOR

ASST. STORE KEEPER

SENIOUR TIME KEEPER

SECURITY GUARDS

E.S.I- P.F CLERK

SALES IN CHARG E

COST A/C

CASHIE R

CHIEF A/C

PURCHASE OFFICER

PRODUCTION CLERK

WAGE CLERK CLERKS

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The main functional areas of the organization are

Production Department. Quality Control Department Personnel Department. Finance Department. Marketing Department.

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4.1. PRODUCTION DEPARTMENT

Production concepts are one of the oldest concepts in marketing. Production concepts hold that consumers will favour those products that are widely available and at low cost. The assumption that consumers are primarily interested in product availability and low price holds in at last two situations. The first is , where the demand for a product exceeds supply in developing then in its fine points, and supplies will concentrate on finding ways to

increase production. Second situation is where the products with high cost and has to be decreased to expand the market. MEANING Production is the functional area responsible for turning inputs into finished outputs through a series of production processes. The Production Manager is responsible for making sure that raw materials are provided and made into finished goods effectively. He or she must make sure that work is carried out smoothly, and must supervise procedures for making work more efficient and more enjoyable. Production, in economics, all those activities that have to do with the creation of commodities, by imparting to raw materials utility, added value, or the ability to satisfy human wants. Production is concerned with the conversion of inputs (raw materials, machinery, information, man power and other factors of production) into output (semi- finished goods and service) with the help of certain processes (planning, scheduling and controlling etc).

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DEFINITION According to Elwood. S. Buffa Production Management deals with the decision making related to production process, so that the resulting goods and services are produced according to specification in amounts and by the schedule demand and at minimum cost. SCOPE OF PRODUCTION Earlier periods there was no mechanization of production system like the one they have now. It was too old tradition compared to this new millennium. The process of mechanization was slowly improved step by step.

STRUCTURE OF PRODUCTION DEPARTMENT SPINNING MANAGER

ASM

DY.SPINNING MANAGER

ASM (SQC)

STORE KEEPER

CLERK

SUPERVISORS

INVESTIGATORS

ASST. STORE KEEPER

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FUNCTIONS OF PRODUCTION MANAGERS The various functions of production manager in the company are: Production Planning Quality Control Inventory Control Work Measurement Production Control Method of Analysis Plant Layout Material Handling Design and Technical Support

DETAILS OF RAW MATERIALS A. Type of Raw Material.

There are three kinds of raw materials used by the organization. They are as follows. a) Cotton b) Polyester Staple Fibre (Psf + Cotton) c) Viscose Staple Fibre ( Vsf + Cotton )

B. Quantity and Price of Raw materials.

The quantity of raw materials is based on the bales. The bales of above three different raw materials are in three different quantities and prices. They are shown in table below.
26

i.

Quantity and Price of Raw material :

Name Cotton Polyester Staple Fibre Viscose Staple Fibre

Quantity per bale 170 Kg 380 Kgs to 466 Kgs 250 Kgs to 252 Kgs

Price Rs 46 to 56 Rs 70

Rs 74

ii.

Raw Material Consumption per day :

a. Cotton : 10 Bales b. PsF c. VsF : 12 Bales : 3 Bales

iii.

Number Of Machines

a.

Mixing

: No machine

b. Blow room : 2 c. Carding d. : 50

Drawing : 10 : 13

e. Simplex

f. Ring Frame : 96 g. Winding h. Packing : 12 : No machine

27

PRODUCTION PROCESS MIXING

BLOW ROOM

CARDING

DRAWING

SIMPLEX

SPINNING

WINDING

PACKAGING
28

PRODUCTION PROCESS A. MIXING

Mixing is the process of combining different varieties of cotton in order to prepare the desired quantity and to produce the yarn of expected quality at an expected price. Cotton is of different quality and variety as it is purchased from different states.

Mixing is done in order to bring uniformity in the quality of raw cotton and humidity etc. The proportion of different varieties of cotton to be mixed is decided in order to produce the desired count. After hand mixing the bale feeding is done. Cotton is passed through different process for cleaning. It is the process of opening and cleaning and is known as blow room process.

B. BLOW ROOM

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

C. CARDING

In this process parallelization, cleaning and drafting is done. This is a process of Individualization, which means that material is separated from fiber and the resultant product is called the silver, which is used
29

in next process. There is further removal of water about 5% of the lap weight. Hence the carding can be considered as the most important process of cleaning section.

D. DRAWING

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

E. ROWING

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

F. SPINNING . The number of machines in this process is 114. The machines work continuously and automatically for the length of time needed to produce a full bobbin of yarn, after which these bobbins are removed and the machine is set to make another set of bobbins. The capacity of

30

the mills expressed the term of number of spindles. The capacity of the mill is limited to 49,532 spindles.

G. DOUBLING Doubling signifies the twisting together of 600 or more strands of single yarn in to a simple or compound form for the purpose of making sewing threads, lace, embroidery yarn, hosiery yarn, netting yarn, special purpose yarn and fancy yarn. The doubled or folder yarn thus produced has greater strength, elasticity and smoothness than a single thread of equal count. H. WINDING The yarn produced from the spinning process is wounded on a cone by using winding machine. The tests are done is cone winding stage. The spinning process is repeated along with winding and rewinding breakage study. The output of the process is the corn yarn. I. REELING Prior to the weaving operations, the yarn is reeled into links of convenient is usually reeled so that firm consolidated package can be obtained their by minimizing transport charges. The reeling operation consists of winding the yarn of swifts as they are technically termed having a circumference of 54 inches. J. PACKING

The output of the production process is in the form of cone yarn by corn winding and hank yarn by reeling. It is packed in bale or board which contains 180 Kg. 120 yarns are equal to one lea and 7 leas are equal to one hank. The production is of various counts

31

PROCESS OF MANUFACTURE Cotton Cotton bales are opened and mixed in blow room. The mixing is processed through blow room to clean the cotton and converted in laps. The lap is processed in carding to remove short fibers, to clean the cotton laps further and also to reuse the lap to card silver form. The card silver is processed in drawing for parallelizing the fibers and to get an even silver. The drawing silver is processed through simplex machine and made in to roving. The required twist is also imparted in the roving. The roving obtained from simplex is fed on to ring frame when the desired count is obtained after giving required draft and importing necessary twist required getting sufficient strength. The yarn obtained as above on the form of cops is fed to cone winding machine to obtain around 1.25 kg weights in the form of cones. The cones are packed in HDPE bags to get a net weight of 50 kg each. Polyester Cotton Blend

Here the process is identical as above expect mixing of polyester and cotton silver from carding section are mined and processed from blow room to cone winding section just like cotton to get the blend proportion 80:20 in the final yarn and the packed in HDPE bags of 50 Kg each.

32

a) Polyester Viscose Here the required proportions of polyester 55% and Viscose fiber 45% are mixing with a separate tin for identification. The rest of the processing is one just like that of cotton yard and packed in to HDPE bags each net. b) Staple Fiber Like cotton this is processed expect a mixing stage where anti static agent is also avoided.

4.2. QUALITY CONTROL DEPARTMENT

This function assumes development, maintenance and improvement of tasks and procedures of QC management, QC policy and also quality control over various projects, production, selling and other activity. Certified procedures and guides are the basic documentation of QC management system. After all required documentation for development of QC policy has been combined which is confirmed, for example, with Standard MS ISO 9001, the quality control will be performed with reference to and in accordance with the collected documentation.

FUNCTIONS Evaluation of quality level. These evaluations are conducted by means of the original or adopted techniques at the enterprise, in its divisions, branches. The evaluations can be practical and numerical. The first one is conducted on production meetings of experts by means of discussion of certain lines of business procedures and operations at the enterprise. Numerical evaluation is settled up mainly on the basis of model Total Quality Management (TQM).
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Internal and external audit. This function assumes internal and external audit of the quality management system and quality assurance in divisions and enterprise services. It is possible to tell that this is the most important function. It is a feedback of quality control system. It is a point that distinguishes a modern quality management based on Standard MS ISO 9000 and TQM from all previous models.

Documentation. The function is aimed to create and keep documents on the projects for formalizing task and processes, keeping statistics and getting lessons learnt. The enterprise can quickly get valued information and use it to make correction to ongoing activity and improve quality management. Quality Control Department Chart QUALITY CONTROL MANAGER

INVESTIGATOR

INVESTIGATOR

INVESTIGATOR

In SQC the count, strength, unevenness %, thin, thick, neps, etc are usually checked. Here 3 counts are produced 62pc. 60 pc & 45 pc. Wrap reel (counting machine) 120 yards. Uster (unevenness, thin, thick, neps) checking machine. Lees strength tester (the strength is checked). In this department investigators are working under the supervision of manager of quality control.

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4.3. PERSONNEL DEPARTMENT (H.R.DEPARTMENT)

The human resource department is devoted to providing effective policies, procedures, and people-friendly guidelines and support within companies.

The most common Human Resource jobs that are grouped in the Human Resource Department are the Human Resources Director, Human Resources Generalist, and Human Resources Assistant. Additionally, some organizations have a Vice President of Human Resources and employees who are organized around providing a specific component of Human Resource services including

compensation, training, organization development, and safety.

So in order to handle precious human resources Kerala Lakshmi Mills is maintaining a Personnel department. Total strength of the mills is 692. It includes 345 permanent employees, 220 Gate badalies, and also trainees, koolies etc. The main functioning of the mill and maximum efficiency is connected with temporary workers. Workers can be divided into two categories, i.e. skilled workers and unskilled workers.

SKILLED WORKERS

In this group it consists of workers who engaged in the maintenance win, electrical section, work shop etc. This people will be trained well in their respective departments.

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UNSKILLED WORKERS

The operating workers who engaged for machine operation are unskilled i.e. in different department, they are engaging after a particular training section. Regarding the staff strength of the mill staff can be divided into three categories i.e. managerial staff, technical staff and clerical staff. In Kerala Lakshmi Mill personnel department is classified into 3 sections.

1. Industrial Relation.

This section concerned with maintaining a good relationship with management and workers and to act as the role of a regulatory mechanism in resolving any industrial disputes in the firm.

2. Establishment

This section handles recruitment, placement and severance of employees. The main functions are: Taking timely action on redressed employees grievances. Maintenance of SC/ST/OBC quota for recruitment and promotion as per government directives.

Originating proposal of employees in their new position. Fixation of salary. Processing of accident leaves.
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3. Trading and Industrial Development

The main functions of this section are: Manpower planning. Maintenance of scheduling incentives. Apprentice training.

Structure of Personnel Department PERSONNEL MANAGER

HEAD TIME KEEPER

SECURITY OFFICER

SENIOR TIME KEEPER

SECURITY GUARDS

ESI, PF CLERK

PRODUCTION CLERK

WAGE CLERK

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WORK TIMINGS The company works on all days in the week. The company works for 24 hours in 3 shifts. The time of the 3 shifts and general shifts will be as follows. General Shifts 1st shift 2nd shift 3rd shift - 7 am to 3.30 pm - 7 am to 3.00 pm - 3.00pm to 11.00 pm - 11 pm to 7 am

The office staff will works from Monday to Saturday and their work timing is 9.30am to 5.00 pm.

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

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FUNCTIONS 1. Recruitment.

Recruitment forms the best stage in the process, which continues with selection and ceases with the placement of the candidate. Recruiting is the discovering of the potential applicants for actual or anticipated organizational vacancies.

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

The worker who is selected at first is selected as learner, after 6 months he/she is promoted as senior learner. If the wok of senior learner is up to standard he is appointed as the permanent employee of the organization. In staff recruitment, interviews are conducted by heads of respective departments. Then they join as trainee and are required to submit a training report to head of respective department. 2. Salaries & Wages Personnel department makes decision on salaries and wages. These are calculated per month for each employee keeping into
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consideration the attendance. Employees are paid differently during training period. 3. Attendance Procedure For managerial staff, duty timings are 10am to 5 pm about which they are very particular. Even if a staff member is 5 minutes late in the morning without any specific reason, he is marked for half-day leave. Workers are doing their work in three shifts of 8 hours each. The staff of each employee goes on changing every month. Records of all this are maintained by the personnel department.

4. Provident fund Scheme In 1932 P.F. Act has been introduced with a view of providing maintenance to the family of the employee after his retirement or death. This act is applicable at Kerala Lakshmi Mills Ltd. In P.F scheme employee has to contribute 12% of his salary and management has to contribute the same proposition to the employees share. An employee is eligible for taking loan from P.F, but certain exemptions are there. During the time of his retirement he and his family members are eligible for that amount. 5. ESI Scheme The main objective of Employees State Insurance Scheme is employee welfare. It comes under the provision of Employees State Insurance Act 1948. Employees are benefited, especially in case of accident or death. The employee has to contribute 1.5% of his salary and company 4% ESI to avail the benefit. 6. Grievance Handling Procedure

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

level they can directly report to head of respective department or to the General Manager.

7. Trade Union A trade union is any combination of persons whether temporary or permanent, primarily for the purpose regulating the relations between workers and employees or between workers & workers for imposing restrictive conditions on the conduct of any trade or business and includes the federation of two or more trade unions. In Kerala Lakshmi Mills Ltd main trade unions are INTUC and CITU. These trade unions are creating such an environment in the organization, which maintains good relationship between workers & management. 8. Salaries & Perks It is the Personnel department that is dealing with calculating of Salaries & Perk. The various perks which are provided by the company to its employees are: HRA ( House Rent Allowance) LTA ( Leave Travelling Allowance) Subsidized food & Canteen facilities. Employees Welfare Fund Employees Children Education Allowance Personnel accident insurance scheme. Loan for house building Employees State Insurance (ESI)- 6% of salary- i.e. 1.5% given by employee himself and 4.5% of salary given by Organization.

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9. Leave Rules Casual Leaves- 10 days per year More than 3 casual leaves at a time or in a month are not allowed. Casual leaves will be lapsed if not utilized.

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

10. Advance & Loans Personnel Department takes care of decisions regarding advance and Loans. Advances are given according to the requirements of the customers.

SECURITY DEPARTMENT
This department is responsible for the security of the entire company. Their main duty is at the main gate of the factory premises from where all the goods enter or leave the company. The security department is maintaining the following registers: I. Inward register for Incoming material

It contains information about date, item, quantity, and place from where it is coming, bill number, medium of transport, vehicle number etc. The concerned person is allowed to enter the factory premises along with material that they are bringing. A stamp is put on

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the bill that they are bringing. Stamp contains information regarding date, entry number etc, then the concerned person goes to the store and

from there he goes to the accounts department where the payment is done after confirming the stamp.

II.

Outward Register- for outgoing Staff

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

III.

Visitors Register

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

IV.

Vehicle Incoming / Outgoing Register

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

V.

Guards Duty Register It contains details of daily duties of guards in shift wise. The security department will also have the 3 shifts that are performed in the organization. The shift changing time of security staff will be half an hour before the ordinary shift timing of the workers.

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4.4. FINANCE DEPARTMENT

In the modern business society finance functions are drawing increasingly more and more attention of all those who are responsible for running financial administration. There is always a problem with every organization for managing its expanding and ambitious plans with financial resources The objective of analysing the financial statements and account is that the books of accounts provide are true and fair view of the affairs of the financial position of the company. The financial department includes Accounts Manager, Chief Accountants, Assistant accountants and cashier. If the financial department of the company is accurate and efficient, it provides a smooth working flow to the company. DEFINITION: Finance department is defined as simply the task of providing funds needed by the enterprise on the terms that are most favourable to it keeping in view its objectives. According to F.W. Paish Finance may be defined as, in modern money using economy finance may be defined as the provision of money at the time it is wanted.

NATURE AND SCOPE OF FINANCIAL MANAGEMENT

Nature of financial management refers to its functions and scope of its objectives. The scope and coverage of the financial management have gone fundamental changes. In the early years of its evaluation it

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was regarded as a branch of economics relating to the raise of funds, but now, in the current literature pertaining to the growing disciplines, financial management is treated as a management activity. This is concerned with the planning and controlling of the firms financial resources as a separate activity or discipline. The finance in the modern business world is the life blood of the business economy. We cannot imagine a business without finance because it is central point of all business activities.

MAIN APPLICATIONS
1) Payroll System 2) Processing of Input from payroll department and payroll calculations. 3) Banks advise statement preparation. 4) Preparation of overtime hours statement and man hour statement. 5) Preparation of earning and deduction summaries. 6) Monthly non managerial increment processing. 7) Automatic payroll journal generation for payroll accounting. 8) Pension computation. 9) Estate information report. 10) Preparation of half yearly and yearly statement of pension details. 11) Insurance scheme. 12) Generating gratuity data for actuarial. 13) Yearly performance incentive computation for mill staff. 14) Contract employee. 15) Monthly and half yearly statement. 16) Provident Fund application. 17) Loan request processing. 18) Members balance statement preparation. 19) Monthly contribution statement preparation. 20) PF. Annual Ledger preparation.

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METHOD OF ACCOUNTING
1) Preparation of monthly journal, ledger and trial balance. 2) Preparation of half yearly consolidation of ledger. 3) Link Schedule preparation. 4) Profit and Loss account preparation. 5) Balance sheet preparation.

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

FINANCIAL DEPARTMENT CHART

FINANCE MANAGER

SALES IN CHARGE

COST ACCOUNTANT

CASHIER

CHIEF A/C

PURCHASE OFFICER

CLERKS

CLERKS

CLERKS

CLERKS

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

SYSTEM OF ACCOUNTING
Computerization is not yet completed in the mill. Few years before it was difficult to keep and maintain records and files in the mill. Now the computerization of the mills is going on. So in future all the files and records can be easily handed in the mill.

AUDITING SYSTEM
The mill conducts 4 types of auditing. They are: Internal audit conducted by NTC Bangalore. Statutory audit conducted by chartered accountants. Auditing by AGs office. ( Govt Of India) Central excise duty.

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

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Sales Tax CST (Out of Kerala) - 3% KGST (VAT) Service tax Education cess No excise duty - 4% - 2.3% - 2 % of service tax.

Income Tax Income Tax 1.03 % Monthly remittance of tax.

CREDITORS PAYMENT SECTION

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

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

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4.5. MARKETING DEPARTMENT

DEFINITION: The Chartered Institute of Marketing define marketing as The management process responsible for identifying, anticipating and satisfying customer requirements profitably. In the words of Philip Kotler, marketing means Satisfying needs and wants through an exchange process. Marketing is means a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. MARKETING CONCEPT The marketing concept is the philosophy that firms should analyze the needs of their customers and then make decisions to satisfy those needs, better than the competition. Today most firms have accepted the marketing concept, but this has not always been the case. When firms first began to adopt the marketing concept, they typically set- up separate marketing departments whose objective it was to satisfy customer needs. Often these departments were sales departments with expanded responsibilities. While this expanded sales department structure can be found in some companies today, many firms have structured themselves into marketing organizations having a company wide customer focus. Since the organization excist to satisfy customer needs, nobody can neglect a customer issue by declaring it a marketing problem everybody must be concerned with customer satisfaction.

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Marketing Concept: Determine Consumer Needs/Wants and fill them better than anyone else, at a profit.

The Consumer is thus the starting point.

Marketing starts with consumer needs.

STRUCTURE OF MARKETING DEPARTMENT

GENERAL MANAGER MARKETING

GENARAL MANAGER

MARKETING STAFF OF VARIOUS DEPARTMENT AGENTS

DEPOT KEEPERS (CONSIGNED AGENTS)

The company is having market department at Head Office headed by general manager of marketing. Marketing information is collected from various depots through local representatives and analysis will do at market departments. The company having yarn basis sales committee at head office headed by one of the full time general manager of marketing also by general manager technical and other general managers from different mills. The committee will review the marketing information and find the product and prices of different count of yarn. The allotment of yarn bags in various depots are accepted on weekly basis. The mill will be
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sending the yarn to the godown in the respective count and the consignment agent selling the yarn to retailers at market senders such as Harendi, Megoan etc. After the receipt of the goods the depot keepers remitting the sale proceeds to mills. The channel of distribution is being carried out the consignment agents. The yarn products are developed according to the demand received from the above market senders. The major product of the mills are 62s PC yarn, 60 PC yarn and 45 PVC yarn. The mill is having testing lab to looks into the quality of the product. CHANNELS OF DISTRIBUTION Channel of distribution means the path or network or the pipe line through which the products are made available to the consumers, providing time and place utility. In the words on Philip Kotler, Channel is a set of independent organizations involved in the process of making a product or service available for use or consumption The marketing is done by the company through identifying agencies. COMPANY

IDENTIFYING AGENCIES

WHOLE SALERS

RETAILERS

WHOLE SALERS

RETAILERS

CUSTOMERS

RETAILERS

CUSTOMERS

CUSTOMERS
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MARKETING OF THE COMPANY Bombay yarn market and the local power looms are the market for yarns. The main product are targeted to power looms mainly Birane, Malgoan, Inchalaring etc. Depot keepers are doing the sales of yarn. It is done through agents. To fix the market on trend it is not fined or fluctuates down or up. There has been a bargaining power. The quantity rate is finding at YPC meeting. Head Office will approve the rate and send a fax message to the mill. The price is fixed based on count, rate and quantity. If the yarn is send to the godown, one copy of invoice is send to NTC godown keeper, one copy to concerned part, one to head office and the one will kept in the office file. The retail showroom has also improved their performance. The total turnover of the retail out lets has improved to Rs 13.45 crores as against to Rs 7.06 crores during the previous year. The corporation has also supplied the cloth to various government departments and public sector undertakings. Customers: The customers of the company are follows: 1. Cloth manufacturers. 2. Whole sale dealers. 3. Some retailers. 4. Garment manufacturers.

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Competition: The main competitions are small spinning units from South India. The company competes with power loom sector and readymade sector. Now there is a trend that most of the people would like to buy readymade dresses. They are not at all interested to buy clothes from tailors shop, because the prices of some readymade garments are cheaper than cloths.

Commissions: Company allows 1.5% as commission to the parties in distribution. The structure of the payment of commission is as follows. Through deposit (1.55% for yarns) In other state (1.5% for yarns)

Customer Service: This is a positive step on the part of the company for the customers. The customer service policy can be summarized as follows: The company satisfies the colour and quantity requirements of the customers. If there any defect in the product after sales, the company allows a considerable amount of discount or return the goods.

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At present, the product is concerned in the weaving mills of Mumbai. The quality of the yarn supplied by the company is comparable to international standards. However due to fluctuation in the market price the company is able to realize the competitive rates. The textile business is also affected due to import of fabrics as a result of globalization. Further due to monetary and economic recession in South Asian countries there has been reduction in demand for textile products forcing many exporters to turn to the same product of the company.

So in those areas the company tries to enter through some sales promotion activities through consigned agents and their brokers. The brand name of the mill is Lakshmi mills packaging and its done at hope ovals sacks (bag hopes) which is done by textile industry department.

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SWOT Analysis is a strategic planning method used to evaluate the strength, Weakness, Opportunity and Threats of a project or in a organization. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favourable and unfavourable to achieve that objective. Specifically, SWOT is a basic, straightforward model that assesses what an organization can and cannot do as well as its potential opportunities and threats. Internal Assessment of the Organization

STRENGTH

WEAKNESS

SWOT ANALYSIS

OPPORTUNITIES

THREATS

External Assessment of the Organization

The SWOT framework was described in the late 1960s by Edmund P. Learned, C. Roland Christiansen, Kenneth Andrews, and William D. Guth in Business Policy, Text and cases (Homewood), IL: Irwin, 1969). The general Electric Council used this form of analysis in the1980s.

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5.1. STRENGTH Presence of highly technically qualified executives Company and its workers are strongly committed to quality Technical abilities of the machineries Well developed technologies Quality of the product Product is accepted in the market New mill as compared to other mills Good work culture is situated Very large asset base Adaptive to technology Frequent supply of electricity Very good Infrastructure

5.2. WEAKNESS Prices of finished goods are controlled by government, but prices of the raw materials are decontrolled. Unhealthy industry practices Less delegation of authority to department heads Fluctuation in raw material quality Employee morale at lower level is less High absenteeism Less efforts to motivate employees Shortage of labour Bad financial base

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5.3. OPPORTUNITY

Strong marketing network in South India 66 acres of land and infrastructure facilities Alternative less expensive source energy and other inputs The company can make use of the existing facilities more productively. There is an increase in the demand of cotton fabric in the national as well as international market. As a public ltd company, it gets more support from government

5.4. THREATS

Fluctuation in the prices of raw materials. Delay in taking decisions. Lack of product differentiation Stiff competition from other spinning and weaving mills. Increase in cost of production due to more wastage. Less basic and recreational facilities provided to the workers may result in uneasiness among workers in future.

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6.1. FINDINGS

All the employees in the organization are aware of the disciplinary procedures prevailing in the organization.

Most of the employees are well experienced. The mill has established a name for quality of its yarn in the textile industry.

Labour relations are smooth and labour problems are minimal. Most of the employees are males in the age group of above 45 years. Most of the employees monthly income is between 5000 and 10,000. Most of the employees feel secure in their job. There is no career development programme or performance appraisal system in the company.

Most of the employees are satisfied with the grievance solving procedure of the organization

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6.2. SUGGESTIONS

Installation of additional machinery or man power will help to reduce the work load of employees.

It is advisable to provide training and development programmes to employees in order to increase their efficiency.

Company can provide more job security so it will help to increase the employee morale.

Company resources should be optimally utilized to make the company profitable.

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7.1. CONCLUSION

Kerala Lakshmi Mills is a name that stands for the quality of textiles. It is a premier textile industry which has established a name for itself by its extra ordinary performance during the previous years. Till last year the company was generating a huge amount of loss that is crores of rupees. But at present the company is coming back to track and losses of the previous years has been considerably reduced. The main reason for this come back is that the modernization is in vogue and the productivity has improved.

The commitment and efficiency of employees has helped Kerala Lakshmi Mills in capturing highly competitive market. Product quality enables the organization to get the prominent place among the corporate entries.

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BIBLIOGRAPHY
Online Sources:www.ntc.com www.google.com www.managers.com

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