A STUDY ON ORGANIZATIONAL STUDY OF KITEX LIMITED,KIZHAKAMBALAM

A STUDY ON ORGANIZATIONAL STUDY OF KITEX

LIMITED,KIZHAKAMBALAM

A Summer Training Report submitted to the SRM University in partial fulfilment

of the requirements for the award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted by

JOSE FRANCIS (Reg. No. RA1552001020074)

Under the guidance of

KANAN, DEPT PROFESSOR (Faculty Guide)

SAINU THAMBY,HR MANAGER (Industry Guide)

SRM Ramapuram B-School

SRM University

Chennai – 89

JULY 2016

SRM Ramapuram B-School

SRM University, Chennai – 89

1

Certificate

This is to certify that the Summer Training Report entitled “A Study on the

Organizational profile of KITEX LIMITED”, in partial fulfilment of the

requirements for the award of the Degree of Master of Business Administration

is a record of original training undergone by JOSE FRANCIS

(RA1552001020074 ) during the year 2015 - 17 of his study in the School of

Management, SRM University, Ramapuram Campus under my supervision and

the report has not formed the basis for the award of any Degree/Fellowship or

other similar title to any candidate of any University.

Place: Chennai – 89 Signature of Guide

Date: (KANNAN PROFESSOR)

SRM Ramapuram B-School

SRM University, Chennai – 89.

Countersigned

Head of the Department

Dr. C. Sundar, M.B.A., M.Phil ., Ph.D .,

Professor & Head

Submitted to the Department of Management Studies, SRM UNIVERSITY

(Ramapuram Campus) for the examination held on_______________

INTERNAL EXAMINER EXTERNAL

EXAMINER

2

DECLARATION

I, Jose Francis, hereby declare that the Summer Training Report, entitled “A

Study on Organizational profile of KITEX LIMITED” , submitted to the SRM

University in partial fulfilment of the requirements for the award of the Degree of

Master of Business Administration is a record of original training undergone by

me during the period May - July 2016 under the supervision and guidance of

Kannan, Professor , School of Management, SRM University, Ramapuram

Campus and it has not formed the basis for the award of any Degree/Fellowship

or other similar title to any candidate of any University.

Place: Chennai – 89 Signature of the

Student

Date:

3

ACKNOWLEDGEMENT

First and foremost, I offer my sincerest gratitude to our Chancellor, SRM

University, for his academic support and the facilities provided to carry out the

project work at the Institute. His wide vision and concern for students have been

inspirational.

I wish to express my profound gratitude to my venerable Chairman, SRM Group

of Institutions-Ramapuram & Trichy Campuses, who offered me such an

opportunity, incredible Infrastructure and other support which made the project

work quite smooth.

I express my heartfelt thanks to our Dean, SRM University, Ramapuram Campus

who provided all facilities for carrying out this project.

I immensely thank to our Head of the Department Dr. C. Sundar, M.B.A.,

M.Phil ., Ph.D ., Professor & Head for his cordial support, valuable information

and guidance, which helped me in completing this task through various stages.

The blessing, help and guidance given by him time to time shall carry me a long

way in the journey of life on which I am about to embark.

I take this opportunity to express my profound gratitude and deep regards to my

guide Kannan,Professor for his exemplary guidance, monitoring and constant

encouragement throughout the course of this project.

I also take this opportunity to express a deep sense of gratitude to Sainu

Thamby,HR Manager for her cordial support, valuable information and guidance,

which helped me in completing this task through various stages. I owe my

wholehearted thanks and appreciation to the entire staff of the company for their

cooperation and assistance during the course of my project.

I thank God Almighty for showering his perennial blessing on me for giving me

the courage to pursue this project work successfully. I owe a lot to my parents,

who encouraged and helped me at every stage of my personal and academic life,

and longed to see this achievement come true.

Jose Francis(RA1552001020074)

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CONTENTS

CHAPTER TITLE PAGE

NO

1 1.1 INTRODUCTION

1.2 OBJECTIVES OF STUDY

1.3 IMPORTANCE OF STUDY

1.4 SCOPE OF STUDY

1.5 PERIOD OF STUDY

1.6 CHAPTERIZATION

8-9

10

11

11

11

12

2 2.1 INDUSTRY PROFILE

2.2 COMPANY PROFILE

14-17

18-35

3 3.2 FINANCE

3.3 PRODUCTION

3.4 MARKETING

3.5 HUMAN RESOURCE

3.6 STORE

39-42

43-46

47-50

51-53

53-56

5

LIST OF TABLES

LIST OF CHARTS

6

1.1 GLOBAL TEXTILE MARKET 16

2.1 LUNGIES PRICE LIST 22

2.2 DHOTHI SIZE 25

2.3 BED-SPREAD 27

2.4 MULL 28

3.1.1 ORGANIZATIONAL

STRUCTURE

37

3.2.1 FINANCE

DEPARTMENT

39

3.3.1 PRODUCTIONS

DEPARTMENT

43

3.3.2 PRODUCTION

PROCESS

46

3.4.1 PURCHASE

DEPARTMENT

47

3.5.1 HUMAN RESOURCE

DEPARTMENT

51

CHAPTER I

INTRODUCTION

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1.1 INTODUCTION

Organization is a social unit which is deliberately constructed and reconstructed

to seek specific goal. An organization came into existence when there are number

of people in communication and relationship to each other and is willing to

contribute towards common endeavour. the evolution of organization begins from

early stages of human civilization , when two or more people began to cooperate

and combine together in fulfilling their basic need of foods, clothing shelter and

protecting life. Thus an organization is born when people combining their efforts

for same common purpose. It is a universal truth than an individual is unable to

fulfil his needs and desire alone because his lacks strength ,ability and

resources .so he seeks to corporation of other people who share goal with him.

This organization study is carried out in KITEX LIMITED,

KIZHAKAMBALAM. The organization study has been carried out to get an

understanding about the “Different aspects and Functioning of this organization”.

The study helps to interact with managers with different departments and to

observe the workers at their workplace and how they complete their duties. The

purpose of the study is to get a clear cut idea about the day to day affairs and

working procedure of the company

The study is confined to 8 week based on the primary data obtained from head of

various departments such as purchase m production and quality control .The study

8

covers brief in the present position of the textile industry and the company, the

study is made by personally visiting the company at Kizhakambalam

The primary data is collected through the structured interview with managers and

other personnel’s of the company. The information about manufacturing process

has been gathered by interacting with different personals of the organization at

different levels

The secondary data for the study was collected from both internal and external

sources. Internal sources include annual reports, office record, management report

and external sources include company website, house magazine were used for

collecting relevant information for the study.

This report with give the information’s regarding the manufacturing process,

organizational structure of the company, departmental functions and also

functional positioning of the company .it will also give brief description about the

world , Indian and state textile industry.

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1.1 OBJECTIVES OF THE STUDY

The objectives of the study are as follows

Primary objectives: To study “ The primary objective of organization study is to

get better understanding of area wise subjects understood in course of business

management programme.

Secondary objective: The secondary study of this study is:

I. To familiarize with a business organization to relate theory with practice

II. To familiarize with organization structure and it’s functioning.

III. To familiarize with different departments in the organization, their

functions and activities including documentation.

IV. To understand key business processes are carried out in an organization

V. To understand how information are used in organization for decision

making various levels including flow diagram

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1.2 IMPORTANCE OF STUDY

The study is conducted only in KITEX LIMITED KIZHAKAMBALAM, shows

the importance of the project affects only this particular company, so findings are

not generalized.

1.4 SCOPE OF THE STUDY

This is a descriptive study titles “AN ORGANIZATION STUDY AT KITEX

LIMITED, KIZHAKAMBALAM” . By this , the researcher has been given the

insight into various dimensions factors that influences day to day affairs and

working procedure of the company.

1.5 PERIOD OF THE STUDY

The period of the study is 8 weeks which starts from May 31st to July 25th

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1.6 CHAPTERIZATION

CHAPTER I

Introduction chapter gives an idea about the, organization where the study has

conducted, the objectives of the study, and the importance of the study, scope of

the study and its period and the limitations of the study.

CHAPTER II

It gives an overview of textile industry; it deals with world scenario, Indian and

state scenario of textile industry and company profile. It includes vision, mission

and objectives of the company.

CHAPTER III

In this chapter we will discuss on functional departments of the company.

CHAPTER IV

This is the last chapter of the report who includes findings, suggestion and

conclusion of the report followed by bibliography.

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CHAPTER II

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2.1 INDUSTRY PROFILE

New innovation in clothing production, manufacture and design came during

industrial revolution – these new wheels, looms and spinning process changed

manufacture forever. There were various stages from a historical perspective-

where the textile industry evolved from being domestic small scale industry, to

the stage of supremacy it holds now. The cottage stage was the first stage in

history where textile was produced on domestic basis.

Clothing manufacturing during industry 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 1701-1770. The centre of cotton

industry in great Britain was Lancashire and amount of exports from 1701-1770

had grown 10 times , however wool was the major export items at that point of

time. In industrial revolution era a lot of effort was made to increase the speed of

production through inventions such as flying shuttle in 1773, flyer and bobbin

system and the roller spinning machine by John Wyatt and Lewis Paul in 1738.

During this period the cloth was made of the material including wool, flax and

cotton. The material depended on the area where the cloth was being produced

and the time they were being made. In the latter half of the medieval period in the

northern part of Europe .cotton comes to be regarded as imported fibre. During

the later phase of 16th century cotton was grown in warmer climes of America and

Asia.

During industrial revolution new machines such as spinning wheels and

handlooms came into picture. Making cloth material quickly became an organized

industry as compared to domesticated activity it had been associated with before.

A number of new innovations led to industrialization of textile industry in Great

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Britain. In the initial phase, textile mills were located in and around the rivers

since they were powered by water wheels. After the steam engine was invented,

the dependence on river ceased to a great extent .in the later phase of 20th century.

Shuttle was used in textile industry were developed and became faster and thus

more efficient. The led to replacement of old shuttle with new one.

Today, modern techniques, electronics and innovation have led to competitive

low priced textile industry offering almost any type of cloth or design a person

could desire. With its low cost labour base, china has to dominate the global

textile industry.

GLOBAL SCENARIO

Textile and Apparel sector is a major sector globally. Since the initial stages of

global industrialization, Textile and Apparel sector has remained at the forefront

in generating employment and adding significantly to manufacturing output and

exports for countries. Textile & Apparel industry can be attributed as the first

organized industry when it grew out of the industrial revolution in the 18th

Century. Countries like Britain, Italy, France, Japan, etc. had a thriving Textile &

Apparel industry during their initial phase of growth, which supported their

economic growth. The same is true today for nations like Bangladesh, Vietnam

and Cambodia.

Since the output of Textile & Apparel industry is a basic requirement for

sustenance, the long term growth trend of industry had always been positive.

However, production bases have kept shifting all along. Increase in manufacturing

costs in developed countries, which were the main markets also, caused growth of

Textile & Apparel sector in Asian countries which had raw material advantage as

well. Soon enough the manufacturing base spread to smaller nations, particularly

those which got preferential access to major markets of USA, Europe and Japan.

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Global Garment Market

The current global garment market is approximately US$ 1.15 trillion which

forms nearly 1.8% of the world GDP. Almost 75% of this market is concentrated

in EU‐27, USA, China and Japan.

COUNTRIES MARKET SIZE

IN USD

2013

MARKET SIZE

IN USD

2025

CAGR

%

EUROPE 335 440 2

USA 230 285 2

CHINA 165 540 10

JAPAN 110 150 2

BRAZIL 60 100 5

INDIA 46 200 12

RUSSIA 45 105 8

CANADA 30 50 4

AUSTRALIA 25 45 5

RoW 82 195 8

TOTAL 1146 2210 5

1.1 GLOBAL TEXTILE MARKET

INDIAN SCENERIO

India’s textiles sector is one of the oldest industries in Indian economy dating

back several centuries. Even today, textiles sector is one of the largest

contributors to India’s exports with approximately 11 per cent of total exports.

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The textiles industry is also labour intensive and is one of the largest employers.

The industry realized export earnings worth US$ 41.4 billion in 2014-15, a

growth of 5.4 per cent, as per The Cotton Textiles Export Promotion Council

(Texprocil). The textile industry has two broad segments. First, the unorganized

sector consists of handloom, handicrafts and sericulture, which are operated on a

small scale and through traditional tools and methods. The second is the

organized sector consisting of spinning, apparel and garments segment which

apply modern machinery and techniques such as economies of scale.

The Indian textiles industry is extremely varied, with the hand-spun and hand-

woven textiles sectors at one end of the spectrum, while the capital intensive

sophisticated mills sector at the other end of the spectrum. The decentralized

power looms/ hosiery and knitting sector form the largest component of the

textiles sector. The close linkage of the textile industry to agriculture (for raw

materials such as cotton) and the ancient culture and traditions of the country in

terms of textiles make the Indian textiles sector unique in comparison to the

industries of other countries. The Indian textile industry has the capacity to

produce a wide variety of products suitable to different market segments, both

within India and across the world.

Market Size

The Indian textiles industry, currently estimated at around US$ 108 billion, is

expected to reach US$ 223 billion by 2021. The industry is the second largest

employer after agriculture, providing employment to over 45 million people

directly and 60 million people indirectly. The Indian Textile Industry contributes

approximately 5 per cent to India’s gross domestic product (GDP), and 14 per

cent to overall Index of Industrial Production (IIP).

The Indian textile industry has the potential to reach US$ 500 billion in size

according to a study by Wazir Advisors and PCI Xylenes & Polyester. The

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growth implies domestic sales to rise to US$ 315 billion from currently US$ 68

billion. At the same time, exports are implied to increase to US$ 185 billion from

approximately US$ 41 billion currently.

COMPANY PROFILE

Introduction

Kitex Limited, a prominent prodigy in the field of textile industry began its

spectacular display in 1975 at Kizhakambalam, Aluva this prestigious

company ,one of the vibrant divisions of Anna-Kitex group of companies of a

celebrity among industrial giants in our country. This weaving unit is engaged in

the production of fabrics made of cotton and other blends, greige cloth, bed

sheets, mull and lungies. They are marketed through a network of over 1600

authorized dealers. Through the years , the company has carved a niche for itself

in this highly competent industry with its tradition of internationally accepted

products.

The company was established to set up an efficient industrial estate to

provide technical, industrial, financial and marketing facilities to power loom

owners and to create job opportunities to reduce unemployed. Considerable

infrastructure facilities have been built up by way of buildings electronically

distribution systems, supporting machineries for warping, sizing etc. To help

power loom owners. about 400 power looms were established in the premises

under the banner of Kizhakambalam Textiles Limited.

The Group got highest regards for the welfare of the employees and

general public. Several charitable programmes were organized for the benefit of

the lower strata of the society. The group is also providing a very good

accommodation and canteen facility to employees who hail from all over Kerala.

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VITAL STATUS

Name : Kitex Limited

Address : Kizhakambalam, Aluva

Registered Office : Kizhakambalam

Nature of the incorporation : public Limited Company

Nature of Business : Manufacturing of cotton textiles

Nature of Product :Industrial Products & Consumer Products

Brand Name of the Product :Kitex

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

450 modern looms,

750 Skilled workers,

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

Production Capacity : 2,500 sq.per day

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

Annual Sales Range : 400 crores

Growth :Steady

Chairman & M.D : Sri: M.C.Jacob

Director : Bobby.M.Jacob, & Mrs: Mini Bobby

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Auditor : Mr. Anil Kumar & Co

Banker : Federal Bank, ICICI, Canara Bank

VISION

CUSTOMERS QUALITY

PROCESS

&PEOPLE

LEADERSHIP

TEAM&TIE

POLICY&STREAM

A world class manufacturing company focusing on all round business

excellence through a Total Quality Management system with committed

leadership, effective team work, delighted customers, and satisfied employees

in an environment friendly organisation

MISSION

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 satisfaction to become a world class organization

through continuous improvement.

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.

PRODUCT PROFILE

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Kitex is engaged in the production of fabrics made of cotton of other blends,

greige cloths, bed sheets, and lungies. Kitex lungies are available in four various

types, executive medium super, medium and economy. All the prices are

differently.

‘Kitex White’ is presenting an array of white dhothies, single as well as double.

It comes with streales of colour and good add to the looks of dhothy .Kitex also

have beautiful of wide range of bed spreads under the label of sweet

dreams .though one year ,the company has covered a rich for itself in this highly

competitive industry with tradition of world class quality.

An innovative school bag from Kitex ,the main shoot of Anna Group .scoobee

day bags are compactly designed with unique features that make it

durable ,colourful,comfortable and easy to carry .the bag features antistrain

shoulder padding and acupressure buds specially designed to minimize the strain

on the back and shoulders.

Lungies

Kitex lungies are available in various varieties like:

Executive

Superior quality lungies available in various designs and colour.

Medium Super

Comfortable lungies you would love to drape. Available in various design and

colour combinations.

Medium

Experience freedom and coolness with medium range of lungies comes to you. In

warm colour and in various design.

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Economy

After a hard day work jump into lungies to ease your tension to smooth your

senses and feel relax.

2.1 LUNGIES SIZE

Product & Particulars Size MRP

Executive 130cm x 200cm Rs.175

Medium 127cm x 200cm Rs.138

Medium Super 127cm x 200cm Rs.150

Standard 127cm x 192cm Rs.175

Supreme 127cm x 200cm Rs.150

Economy 127zm x 192cm Rs.125

Regular 124cm x 155cm Rs.110

Dhothies

‘Kitex White’ gives the customers an array of white dhotis- single as well

as double. It comes with streaks of colour and gold to add to the looks of their

dhotis. It is available in the rate between Rs.100/- to Rs.310/-.

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Some of the varieties of dhotis available in Kitex are:

1-Smart Line

White single Dhothies with structure of either dark red or dark blue or dark green

line which can be worn equally at home and outdoor.

2—Smart Line Gold

Cream colour single dhothy with streales of gold jerry lines for special locations.

3—Ready Wear

Plain white dhothy we will have to drape.

4---Smart

Pure cotton white double dhothy with lines in five different colours to choose.

PRODUCT RANGE

Yarn count average ME 4 to100’s

Weft density 22 to 122 piker’s per inch

Warp density to 132 tends per inches.

Width range 36 to 65 inches.

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2.2 DHOTI SIZE

PRODUCT & PARTICULARS SIZE

Ready Wear 128cm x 200cm

Smart Line (Single dhoti white) 127cm x 200cm

Smart Line Gold(Single dhoti gold) 127cm x 200cm

Samart Line Ivory(Single dhoti kodi) 127cm x 200cm

Samart(Double dhoti white) 127cm x 385cm

Samart Plus RX(Double dhoti white

broad Kara)

127cm x 385cm

Samart Plus XL(Double dhoti kodi 127cm x 400cm

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broad Kara)

Samart Ivory Plus RX(Double dhoti kodi

broad Kara)

127cm x 385cm

Samart Ivory Plus XL(Double dhoti kodi

broad Kara)

127cm x 400cm

Samart Premium RX(Fine double dhoti

white broad Kara)

127cm x 385cm

Samart Premium XL(Longer fine double

dhoti white broad Kara)

127cm x 400cm

Bed- Spread

Kitex also have beautiful and wide range of bed spreads in the range

between Rs.150 to Rs.550/-. Through the years, the company has carved a niche

for itself in this highly competitive industry with its tradition of world class

quality.

Bed Sheets or bed spreads are available in following varieties:

1-Sweet Dreams 60

Beautiful bed spreads available in beautiful designs and pleasant colour to suit our

bed rooms.

2- Sweet Dreams 50

Beautiful bed spreads available in beautiful designs and pleasant colours to suit

our bed rooms.

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Particulars Size

Sweet Dream-50(Single Sheet) 128cm x 225cm

Sweet Dream-60(Double Sheet) 152cm x 225cm

Solo(1SD 60 bed sheet + 1 pillow cover) 152cm x 225cm

Duo(1 SD 60 bed sheet + 2 pillow cover) 152cm x 225cm

Solitude(1double sheet) 152cm x 225cm

Solo Minor(1 solitude bed sheet + 1

pillow cover)

152cm x 225cm

Duplex (1 solitude Bed sheet + 2 pillow

cover)

152cm x 225cm

2.3 BED SPREAD SIZE Mull

Price ranges from Rs.40/- to Rs.60/-. Mulls are basically produced in two

classes in Kitex. They are:

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Table- 2.4

Classes Size MRP

Economy 127cm Rs.48/-

Medium 1228cm Rs.60/-

Scoobee Day Bags

ScooBee Day - The Prodigy in Bags

At the dawn of new millennium the new generation was presented with an

innovative school bag from Kitex, the main offshoot of Anna Group. ScooBee

Day bags are compactly designed with unique features that make it durable,

colourful, 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. Race through the features and see your heart fall in love with

ScooBee Day.

Scoobee became a close companion to all school going kids. With shoulder

strap cushions and rear padding for added comfort, scoobee day bags come in

various colour combinations. Using Ribstob fabric and Leak proof material

27

scoobee day bags are attractively priced. The unique features include special

pouch for water bottles, Tiffin boxes and even a secret pocket.

Features:

• Made from imported Dineer Nylon for durability

• Shoulder strap cushion to prevent shoulder pain

• Soft padding and acupressure buds on the rear side to cushion your back

• Unique stitching using strong nylon threads

• Quality zip with zip guard to prevent water leaking into the bag

• Secret pocket to hold chocolate and money

• 15 different colour combinations

• Special leak proof Tiffin box pouch at attractive price

• Bags for college and travel purposes also available

Trawellday Bags

The Renowned Anna-Kitex Group-manufactures of quality consumer

products forayed into the travel bag segment with its – TRAWELL DAY BAGS-

wide range of luggage and baggage products. Coming up with latest designs and

models, these travel and everyday travel luggage needs are designed to meet the

modern trends and requirements of the customers. Made from the imported

materials, the bags are available in attractive styles and different colour

combinations.

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TraWell Day offers:-

Travel Bags

Trolley bags

Business Bags

Lap-Top Bags

Back-Pack Bags

Beauty Case Bags.

TraWell Day bags caters to our every day needs and is most suitable for

individuals and families for travelling both by train and bus. Another speciality of

these bags are they are fully lined with water proof nylon material, and it is

spacious, capable of accommodating the luggage that would require 4 to 5 bags in

just 1 TraWell Day bags.

The product range consists of Soft Trolley (H20, Gladiator, and Premium),

wheeler Duffels (Maxima), air Duffels (Aurora and Orient), Back packs (Platinum

and Fair), and Executive Bags (E-bags and Unique) are rated from Rs.635 /- to

Rs.2970 /- available in various models and sizes.

Dago Bert Shirting and Suiting

Dago Bert Shirting’s 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 colours and shades.

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Agna and Adonis Inner Wear

Kitex has made its foray into the untapped lingerie segment with brand

names Adonis and Agna. ADONIS – innerwear for men; and AGNA – innerwear

for ladies. With Anna Groups promise of quality, both ADONIS and AGNA

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.

MARKETS

Main markets are:

North America

South America

Western Europe

Eastern Europe

Eastern Asia

Southeast Asia

Mid East

Africa

Oceania

Technology

Kitex uses a combination of both traditional and modern technologies for

the production of their products. Some of the Techniques used for the production

process in the Kitex are:

a. Warping

b. Sizing

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c. Beam Drawing

d. Weaving

e. Cutting, Un-winding and checking in warehouse

f. Folding

g. Recounting

h. Grading and sorting

i. Bailing (Packing).

Awards Won

Mr. Jacob, the managing director 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 1st,

PATRIARCH OF VATICAN.

AKSHAYA AWARD 2000 for his outstanding contribution to

‘Malayanma’.

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The Ernakulum Chamber of Commerce the Joseph Chakola Memorial

‘Vyavasaya Jyothi’ Award to Mr. Jacob for the year 2000-2001.

Department of Catechism Ernakulam-Angamaly has recognized his

contribution by giving a Memento for special service rendered to

Catechism Teachers.

Bharat Aluminium 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.

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.

FUTURE EXPANSIONS

Future Vision

32

To reach excellent quality standards in coming years.

To keep in pace with modern technologies concept.

To organise supply of materials at minimum cost to maximum excellent.

Future Expansion Plans

Weaving capacity is doubled from 5,000 by adding 120 shuttle loom. Now

there is planning to import more raw materials for Dornier and pecanor, and also

to increase their exports of various products to many different countries abroad.

Diversifications of new products are being added.

As a part of expansion Kitex Limited garments unit is developing and there

is also future plan to expand the capacity of TraWell Day bag unit for improving

the quality and for developing the production capacity.

COMPETITORS

We find that the Kitex faces competition from only a few brands like:

KKB

Angel

Jansons

Majority of the customers were asking Kitex lungies. It shows that Kitex lungies

have good brand image. If we look at the competitors from only the lungies side

we can see the competitors are as follows:

Angel

Bombay Dyeing

Jansons

KKB

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We find that the market share of Kitex is far more than others if we compared

with other brands.

CHAPTER III

ACTIVITES OF VARIOUS

DEPARTMENTS

34

35

CHAIRMAN

GM

PRODUCTION HR MANAGERDGM MARKETING

STORE MANAGER

PURCHASE MANAGER

SUPERVISOR

FOREMAN

WORKERS

PURCHASE OFFICER

EXECUTIVE

STORE IN-

CHARGE

SECURITY

ASSISTANT MANAGER

SALES EXECUTIVES

ASSISTANT MANAGER

WELFARE OFFICER

EXECUTIVES

Kitex Ltd follows the line or military organizational structure. Managing

Director is the top level, other functional managers followed by him. The span of

management in the organization is narrow span. 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)

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

certification in the textile industry and experience.

FUNCTIONAL DEPARTMENTS

3.2.1 FINANCE DEPARTMENT

3.2.1 FINANCE DEPARTMENT

The finance department is headed by the general manager having sufficient

industry experience in the field of finance, taxation, company law and financial

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

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Deputy General Manager Finance

Finance Manager

Accounts Officer-Taxation Accounts Officer-General

Accounts Executives Accounts Executives

all the managerial activities of raising funds and effective utilization. Finance

department lies in the decision making area of investment, finance and dividend.

Recruitment and promotion in production are the activities of H.R. department,

but the payment of wages, salaries and other benefits are done by the finance

department. Finance department in Kitex Limited is headed by the finance

manager. He decides from when and where to acquire funds, to meet firm’s

investment needs. He should determine the proportion of debt to equity. The

finance should strive to achieve the optimum capital structure for the

organization.

Major Functions of Finance Department

1) Recording of the day today transactions- accounting.

2) Preparation of various statements regarding stock, receivables etc., which

are to be submitted to various authorities like bankers, insurers etc.

3) Planning and controlling of the expenses/ funds for productions.

4) Approving and making payments to different parties creditors/ suppliers.

5) Receiving payments from customers/dealers in specified time.

6) Raising short term loans/credit from banks and other financial

institutions.

7) Preparation of sales budget/revenue budgets and expenditure budget on a

quarterly basis

8) Preparation and maintenance of costing records.

9) Preparation of fund flow and cash flow statements for every month.

10) Timely preparation and filing of financial records.

11) Preparing and filing of quarterly and final income tax returns.

12) Preparation/implementation of cost reduction and cost control programs.

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In addition to the above mentioned work the following reports are prepared by the

following department.

a) Annual report containing past performance, current financial figures,

profit/loss A/C,

Balance sheet and other financial statements.

b) Half yearly & quarterly report.

c) Monthly report to top management on financial performance of the

company including

Sales achieved, production achieved and profit generated.

d) Conduct and Co-ordination of internal and statutory audits.

e) Perpetual stock verification & asset verification.

f) Investment analysis/ feasibility studies in production supply order received

contracts etc.

The finance manager is responsible for maintaining funds at an optimum level.

Care is taken to see that working capital never gets blocked anywhere at any time.

The company meets working capital requirements usually by bank overdrafts and

other short term loans on the security of stock of finished goods.

The company has a total investment of Rs.5 crore and annual turnover of around

114.5crore from the sale of grey fabric and finished products.

Year ended 31st March, 2014 (Rs in lakhs)

Year ended 31st March,

2013

(Rs in lakhs)

Total Income 45555.36 32100.85Profit before Depreciation

9786.53 5266.21

Profit before Tax 8818.53 4404.08

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Profit After Tax 5736.88 2937.68Transfer to General Reserve

600.00 300.00

Table 3.2.1

PERFORMANCE REVIEWKitex achieved an all time high performance both in turnover and its profits. The Gross revenues touched Rs.455.55 crores which is 42% more than last year and the Profit before depreciation and taxes recorded was Rs.97.87Crores which is also up by 86% as compared to previous year. Your company coupled high level of modernization with, concentrated efforts of both Management and employees, the whole hearted support of Banks, suppliers and customers to attain these levels of performance. The earnings per equity share (of face value Re. 1)for the year increased to Rs.12.08 from Rs.6.18 for the previous year.

DIVIDENDCompany recommend a dividend of 100% (One Rupee per Share of face value Re1/-) for the year, (as against 80% for the previous year ended 31st March, 2013), subject to the approval of the shareholders at the ensuing Annual General Meeting. An amount of Rs.6.00 crores has been transferred to General Reserve as per the existing provisions of Companies Act 2013 read with Companies Act, 1956 and rules there under.

CAPITAL EXPENDITUREAs at 31st March 2014 the gross fixed assets stood at Rs.23739.64 lakhs and net fixed assets Rs.18120.61 lakhs. Additions during the year amounted to Rs.7363.99 lakhs, which

40

include addition to land and building for Rs.248.98 lakhs, plant & machinery and other assets amounting to Rs.7115.01 lakhs.

FOREIGN EXCHANGE EARNINGS AND OUTGO

2013 - 14 (Rs in lakhs)

2012 - 13 (Rs in lakhs)

Earnings on account of Exports

32623.58 24808.90

Outgo on account of

Import & Expenditure

9450.21 2805.48

Table 3.2.2

3.3 PRODUCTION DEPARTMENT

Chart 3.3.1 showing the structure of Production Department

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Deputy General Manager Production

Packaging Supervisor Quality Control Officer

Shift in Charge Supervisor

Production is the process by which raw materials and other inputs are converted

into finished products. The core of a production department is its conversion sub-

department wherein workers. Materials and machines are used to convert input

into products and services. This process of conversion is the heart of production

function and is present in some form in all organizations. New manufacturing

processes are being introduced and existing ones are being developed further for

more improvement. Improvements in quality of products can be achieved with a

proper design that takes into consideration the products functional requirements

and its manufacturing aspects. The design process which takes proper care of

manufacturing process would be the ideal ones as it ensure a better product being

made available at economical cost. Production manager in Kitex is also known as

weaving master. In Kitex the plant layout followed is product layout which is also

known as straight line layout. It involves the arrangement of machines in a

straight line. It has many advantages like low cost of material handling, there will

be product standardization. The company has a production of about 18000 meters

of grey cloth per day.

Functions of Production Department

Design of the product

Design of the production system

Production planning and control

Selection of location

Layout of plant

Selection of plant and equipment

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Packers

Workers

Assistant Checkers

Research and development

The products manufactured by the company are industrial goods and consumer

durable goods. 85% of the goods (grey cloths) are sold as such to other company

or production units in the textile industry where the same are converted into

useful consumer durable textiles or garments. 15% of the grey cloths

manufactured by the company is converted into lungis, dhoties, mulls and bed

sheets. The conversion is done by various units at Coimbatore. The conversion

process includes bleaching, dying, re-sizeing, printing etc. After the work is done,

different varieties of goods are recollected, quality checked, packed and marketed

by the company.

Production Capacity Utilization and Modernization

The production department or factory has installed capacity of 383 power looms.

100% capacity is utilized for production. In Addition to the power looms, the

company has installed 22 modern looms. It is called sulzer looms. This is

imported from Switzerland. The advantage of these looms is high speed and more

production than power looms. It is fully automated and also high quality of goods

is produced with the use of less manpower. The clothes produced by modern

looms have more width than those produced by power looms.

Modern sulzer looms are operated by highly qualified and highly experienced

personnel. They are hired from other textile mills and are paid well. Other

workers work under the supervision of these experienced workers. Ordinary

power looms require 2 persons per loom whereas two modern looms require only

one person. This means that by the use of modern looms plenty of labor expenses

can be saved. Ordinary looms are also in the process of modernization and

automation. & 5% of the modernization work is completed.

Shifts

The company is undertaking production on job order basis. The production

department functions in 3 shifts:

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1. 8 am to 4:30 pm

2. 4:30 pm to 1:30 am

3. 1:30 am to 8am.

Raw Materials Used

100% cotton yarn of different specification for different quality of grey cloth form

the major raw materials used in production. The other raw materials are sizing

chemicals, starch and adhesives. All these form direct materials for production.

Indirect materials consist of different consumable stores, spares and cleaning

chemicals.

The company never faced any raw material shortage. This is due to the efficient

supply chain management. Scientific estimation of raw materials requirements

and timely procurement of raw materials. The purchase department plays an

active role in the effective and timely procurement of raw materials.

PRODUCTION PROCESS

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Pirn Winding

Wrapping

Sizing

Beam Drawing

Weaving

Checking

Ch

art 3.3.2

There are two types of process in the textile industry- Weaving and Spinning. We

can see that yarns of various counts are manufactured. Weaving process consists

of the manufacturing pure cotton grey cloth from cotton yarn. In Kitex Limited,

weaving is the main process. Output is 100% pure cotton grey cloth, which is

manufactured from the textile industry. In Kitex, 85% of the sales come from the

sale of lungis, mull, bed sheets, Dhothies prepared from cotton gre cloth.

3.4 PURCHASE DEPARTMENT

Chart 3.4.1 showing the structure of Purchase Department

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Rechecking

Folding

Recounting

Grading & Sorting

Bailing

Deputy General Manager- Purchase & Maintenance

Purchase Manager

Stores Manager

Store Assistants

Purchasing Executives

Kitex have an effective purchase department and its functions are to procure

materials, machines, and tools etc., at the right quality and quantity at the right

time. The firm has a centralized department structure which is headed by

Purchase Manager, assisted by two Purchase Officers and Purchase Assistants.

The Purchase Manager has to report to the General Manager and Managing

Director. Its objectives are to make continuous availability of raw materials and to

make purchase competitive and wise at most economic price, to develop

alternative source of supply, to serve as information center on material knowledge

relating to price, source of supply, and mode of delivery etc. The purchase

department has to purchase good quality of materials to have a minimum possible

wastage of materials and loss in production. Purchasing is the most important

function of materials management and starts at the moment an order is placed, for

the purchase of materials a substantial part of the companies finance is

committed , which affects the cash flow position of the company.

OBJECTIVES OF PURCHASE DEPARTMENT

To make a continuous availability of materials so that there may

be uninterrupted flow of materials for production.

To make purchase competitively and wish at the most economic

prices

To make the purchase in reasonable qualities and to keep

investment in materials at minimum.

To develop relationship with supplier, which will ensure the

best supply of materials.

To purchase proper quality of materials to have minimum

possible wastage of material and loss of production.

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MATERIALS PURCHASED

The following are the major items of materials purchased by the

company:

100% of cotton yarn of different specification.

Sizing chemicals :- Tapioca starch and Adhesives

100m spares.

Electrical equipment and accessories

Packing materials and office stationary

PURCHASE PROCEDURE

(1) Purchase Indent:-

Indenter raise materials requisition note to stores department. If not available

stores department issues purchase requisition to purchase department and is

documented in purchase department.

(2) Enquiry:-

Purchase department sends enquiries to appropriate vendors on receipt of indent

and they in turn send quotations.

(3) Receiving Quotations:-

Quotations are checked by the managers of purchase and finance department and

they check the appropriate quotations.

(4) Preparation Of Competitive statements:-

Quotations are better tabulated a purchase department prepare the comparative

statement and send to intender.

(5) Approval:-

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After studying all the details and analyzing the decisions relating to approval is

taken by the finance department.

(6) Issuing Purchase Order:-

The purchasing order is given relates to the needed quantity to the respective

suppliers.

(7) Receiving And Inspection Of the Materials:-

After receiving the materials ordered, they are inspected to ensure the

quantity of the materials received.

(8) Checking and Passing of Bills:-

The materials are checked to see the quality of materials and the bills are

passed for payments. Before fixing the contracts for purchase, price variation

clauses are included in terms and conditions of purchase.

Factors Considering While Selecting Suppliers

Manufacturing capacity

Reliability of suppliers

Financial conditions of suppliers

Price quoted

Quantity for which price quoted is applicable

Terms of payment and delivery

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3.5 HUMAN RESOURCES DEPARTMENT

Chart 3.5.1

Now-a-days human resources are considered as one of the important assets of an

organization. Every successful company needs great people to make recruitment

and retention. Companies must find, new ways to engage the knowledge,

experience and talents of employees to find the hidden value to achieve strategic

goals.

49

Deputy General Manager Human Resources

Deputy H.R. Manager H.R. Assistant

Senior H.R. Officer Executives Executives

Executives

Kitex Ltd has a good human resource department and it maintains

good relations with the employees. This helped the company to achieve

tremendous growth. All the employee related activities are managed by this

department.

Working time: 9 am to 5 pm

Saturday : 9 am to 4 pm

Functions

The main functions / role of personnel & Administrative Manager

i) Advisory Role Industrial Psychology and Sociology

ii) Operative and Service role

iii) Conciliators role

iv) Specialist advisory role

Or

i) Formulation of HRD functions and suggesting the HRD needs of the

organization

ii) To find out ways and means of implementation of HRD function

iii) Monitoring the HRD activities of the organization

iv) Total commitment towards implementation of HRD

HRD DEPARTMENT OF THE COMPANY IS BASED ON THREE

ASPECTS;

a. Competency Building

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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

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.

3.2.3 STORES DEPARTMENT

The manager heads the stores department. It is a sub section of purchase

department. He is assisted by four persons, two in general shifts and one each in

other two shifts. Stores manager reports to general manager. Stores department in

Kitex controls the movement of materials to all activities. Materials in stores

department includes sizing chemicals, yarns of different specification, adhesives,

spare parts, electronic goods, lubricant tools, office stationary, packing materials

etc. items are coded for easy handling. Packing materials and yarn are stored in

corresponding departments but the issue of raw materials is controlled by the

stores department. Stores manager with the help of purchase manager and

production manager plans material storage.

Storage of all items of raw materials including sizing materials, yarn of

different specification, spare parts, electrical items, lubricant tool, office materials

51

packing materials etc. is the responsibility of store department. Material storage is

planned by the store manager with the help of purchase and production

department. Yarn and packing materials are stored in the production department

godown due to lack of sufficient space in the store and to facilitate easy handling

of both the item.

FUNCTIONS UNDERTAKEN IN STORES DEPARTMENT

Issue of raw materials which are ordered by various functional units. Raw

materials are issued when material requisition note is received from

supervisors of concerned section in production department.

Recording quality, quantity and other specifications of items issued by

stores department in stores ledger account for inventory control.

Availability of materials is checked through computer and verified.

The physical stock is taken and is checked by stores department and also

by the internal auditors. Stock verification is done independently by store

keeper and store manager.

The materials stocked should be preserved well so as to protect them from

deterioration. It is done with the help of eco-friendly chemicals and are

insured against fire.

RECORDING OF STOCK

Perpetual stock records are kept for raw materials, spares, work in

progress and finished goods. These records are periodically reconciled with

accounting records. This is a periodical reporting of storage or excess. If

differences are there, they are investigated and necessary adjustments are made in

the final accounting records and stores ledger accounts maintained in stores.

The stores 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 computer, ABC analysis of inventory is done in a

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regular basis of physical stock check once in every month by the stores

department and internal auditors.

STEPS IN RECEIVING MATERIALS

Visual inspection.

Preparation of receiving report.

Preparation of inspection report.

Dispatch of above reports to financial department for getting the bills

passed and arranging payments.

Preparation of rejection notes of materials.

MATERIAL CONTROL SYSTEM

The company has material control system which ensures that right quantity of

materials is available at the right time at the right place with right amount of

investment. Two levels of material control exist in the company, quality control

and financial control. Production manager and stores manager are primarily

interested in quantity control because it is their responsibility to see that there is

no stock out problem.

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 a reasonable

low price.

There is minimum wastage of material while these are being stored in the

godown by the stores department.

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Information about availability of materials is continually made available

by the store manager.

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

As a part of material control system, there exists an internal check on

materials so as to avoid misappropriation of store items.

TECHNIQUES OF MATERIAL CONTROL

Level setting EOQ

ABC analysis.

Perpetual inventory system.

Materials turnover ratio.

Material cost reports.

INVENTORY CONTROL ANALYSIS

In Kitex, the major technique used in controlling the inventories is ABC analysis.

Turnover ratios are calculated and it is done regularly. All stocks are kept in

assigned area and the access to these areas is strictly restricted. The inventory

control systems are designed in such a way that the production is not interrupted

in any way. Proper planning, purchasing, handling and accounting of materials

have helped company to control the cost of production. Thus it aims at qualitative,

quantitative and financial control.

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