An Internship Report submitted to Bangalore UniversityIn partial fulfillment of the requirements for the award of the Degree of Masters Of Business Administration

By

ASIF.K.T Reg. No: 132GCMA007

Under the guidance of

External Guide Internal GuideK Ananthan Abdul Aleem

Director Asst.Professor

Payyannur Khadi Center S B College, Bangalore

S B COLLEGE OF MANAGEMENT STUDIES

CA Site#21, KHB Colony, 5TH Phase

Yelahanka New Town, Bangalore -560 064

2014-2015

CONTENTS

Sl No. CHAPTERS PAGE NO.1 INTRODUCTION

• Industry Profile• Introduction about the Industry• Objectives of the study

2 PROFILES• Company Profile

• History of the organisation

• Vision and mission of the company

• Area of Operation

• Organisation Structure

• Details of units under Payyannur Khadi Center

3 DEPARTMENT STUDY

• Production Department

• Marketing Department

• Finance Department

• Human resource Department

• Purchase Department4 SWOT ANALYSIS

• Strength

• Weaknesses

• Opportunity

• Threats

5 FINDINGS , CONCLUSSION AND SUGGESTIONS

• Findings

• Conclusion

• Suggestions

BIBLIOGRAPHY

• Books Referred

• Reports

INTRODUCTION

CHAPTER – 1 INDUSTRY PROFILE

1.1 Introduction about the Industry :

1.1.1 Indian Textile Industry

The Indian Textiles Industry has an overwhelming presence in the economic life of the country.

Apart from providing one of the basic necessities of life, the textiles industry also plays a vital

role through its contribution to industrial output, employment generation, and the export earnings

of the country.

The sector contributes about 14 per cent to industrial production, 4 per cent to the gross domestic

product (GDP), and 11 per cent to the country’s export earnings. It is the second largest provider

of employment after agriculture. Thus, the growth and all round development of this industry has

a direct bearing on the improvement of the economy of the nation.

Market Size

The Indian textile industry is set for strong growth, buoyed by both strong domestic consumption

as well as export demand. Abundant availability of raw materials such as cotton, wool, silk and

jute and skilled workforce has made India a sourcing hub.

The most significant change in the Indian textile industry has been the advent of man-made

fibers (MMF). India has successfully placed its innovative range of MMF textiles in almost all

the countries across the globe. MMF production increased by 9 per cent during June 2013. The

production increased by about 3 per cent during the year April-June 2013.

Cotton yarn production increased by 8 per cent during June13 and by 10 per cent during April-

June 2013. Blended and 100 per cent non-cotton yarn production increased by 5 per cent during

June 2013 and increased by 8 per cent during the year April- June 2013.

Cloth production by handloom, and hosiery increased by 3 per cent and 12 per cent respectively

during June 2013 .Production by handloom, and hosiery sectors increased by 5 per cent and 12

per cent during April-June 2013. The total cloth production increased by about 1 per cent during

June 2013 and by 2 percent during Apr-June 2013.

The potential size of the Indian textile and apparel industry is expected to reach US$ 221 billion

by 2021, according to Technopark's Textile and Apparel Compendium 2012.

InvestmentsThe textiles sector has witnessed a spurt in investment during the last five years. The industry

(including dyed and printed) attracted foreign direct investments (FDI) worth Rs 5,831.02 crore

(US& 854.78 million) during April 2000 to May 2013.

Some of the major investments in Indian Textile Industry are:

• Superdry plans to open 20 stores in India over the next five years, as per Mr James

Holder, Founder, Superdry

• The Aditya Birla Group has signed an in-principle agreement to buy the assets of

Ontario-based Terrace Bay Pulp Mill for Rs 605 crore (US$ 88.70 million). The acquisition

would be carried out through AV Terrace Bay (Canada), a special purpose vehicle (SPV) in

which two group companies, Grasim Industries and Thailand-based Thai Rayon Public, would

hold stake

• Tommy Hilfiger plans to add 500 stores in India over the next five years as part of their

expansion spree

• CancliniTessile plans to tie up with Tirupur-based Emperor Textiles to stitch its shirts in

India. The equal joint venture (JV) with Emperor Textiles will set up a separate manufacturing

unit in Tirupur to manufacture Italian fabric for domestic consumption

Government InitiativesThe Government of India has promoted a number of export promotion policies for the Textile

sector in the Union Budget 2011-12 and the Foreign Trade Policy 2009-14. It has also allowed

100 per cent FDI in textiles under the automatic route.

Due to policy measures initiated by the Government in the recent past, the Indian textiles

industry is in a stronger position than it was in the last six decades. The industry which was

growing at 3-4 percent during the last six decades has now accelerated to an annual growth rate

of 8-9 per cent in value terms.

Some of initiatives taken by the Government to further promote the industry are as under:

• The Government of India and Government of Bangladesh plan to sign a memorandum of

understanding (MoU) on cooperation in textiles and jute through exchanging technologies

• The Government has offered health insurance coverage and life insurance coverage to

161.10 million weavers and ancillary workers under the Handloom Weavers' Comprehensive

Welfare Scheme, while 733,000 artisans were provided health coverage under the Rajiv Gandhi

ShilpiSwasthyaBimaYojna

• The Central Cottage Industries Corporation of India (CCIC), and the Handicrafts and

Handlooms Export Corporation of India (HHEC) have developed a number of e-marketing

platforms to simplify marketing issues. Also, a number of marketing initiatives have been taken

up to promote niche handloom and handicraft products with the help of 600 events all over the

country

• As per the 12th Five Year Plan, the Integrated Skill Development Scheme aims to train

over 2.67 million people within the next 5 years. The scheme will cover all sub sectors of the

textile sector such as textiles and apparel, handicrafts, handlooms, jute and sericulture

• As per the Credit Guarantee program, over 25,000 Artisan Credit Cards have been

supplied to artisans, and 16.50 million additional applications for issuing up credit cards have

been forwarded to banks for further consideration with regards to the Credit Linkage scheme

• The Government of India has announced a package of US$ 604.56 million to waive of

overdue loans in the handloom sector

• The Indian Government has given approval to 40 new Textiles Parks to be set up and this

would be executed over a period of 36 months. The new Textiles Parks would leverage

employment to 400,000 textiles work

1.1.2 Khadi in Textile Industry:

Indian Khadi having a separate entity in Indian textile industry. The true Indian designer of

Khadi Village Industries was Mahatma Gandhi when he used the people of India to wear Khadi

garments. It was not only a call to create self reliance but a call to wear something that could

prove the unity of id India. Khadi was given a more important status by Gandhi after his return

from South Africa. White in search of the Charkha, Gandhi felt that for a nation to turn self

reliant, It had to return to indigenous manufactured goods.

Therefore Khadi become not only a symbol of revolution and resistance but part of an Indian

industry

A village industry means any industry located in a rural area which produces any goods or

renders any service with or without the use of power and in which the fixed capital investment

per head of an artisan or a worker does not exceed one lakh rupees or such other sum as may, by

notification in the official Gazette, be specified from time to time by central Government

Provided that, any industry specified in the schedule and located in an area other than rural area

and recognized as a village industry at any time before the commencement of the Khadi and

village Industries and Commission (Amendment) Act 1987, shall, not withstanding anything

contained in the sub-clause, continue to be a village industry under this Act.

Khadi commands a sentimental value for Indians. It is often associated with Mahatma Gandhi.

The first true Indian designer was Mahatma Gandhi when he urged the people of India

to wear Khadi garments. It was not only a call to create self reliance but a call to wear

something that could prove the unity of India.

As per the Khadi and the village industries Act amended in 1987, Khadi means any

cloth woven on handloom or farm cotton, silk or woolen yarn, handspun in India or from

mixture of any two or all such yarns. That is Khadi’s Indian handspun and hand-woven

cloth. The raw materials are cotton, silk, or wool which are spun into threads on a

spinning wheel called a charka. Khadi is versatile fabric cool in summer and warm in

winter.

The intension of Khadi and village industry is to provide employment opportunity to

women and artisan by transferring a simple technology and facilitate production of fabric

which is ideally suited for the climatic condition of the country. As per the Khadi and

Village Industries Act amended in 1987, Khadi and Village Industries can be started

only in panchayath areas.

Khadi is Indian handspun and hand-woven cloth. The raw materials may be cotton ,silk or

wool which are spun into threads or swimming wheel called charka.

Khadi is versatile fabric, cool in summer and warm in winters. Being a cruder from

material, it compete much faster than other preparations of cotton. In order to improve

the look , Khadi is often starched to have a stiffer shape. It is widely accepted in fashion

circle these days. Mahatma Gandhi began promoting the spinning of Khadi for rural self

employment in 1920s India. He also wanted to spread the message of not using foreign

clothes. The freedom struggle involved around the use of Khadi fabrics and dumping of

foreign made clothes. Thus it symbolized the political ideas and independence itself and

so this day most politicians in India are seen only in Khadi clothing. The flag of India

is only allowed to be made from this material although in practice may and lag

manufacture especially those outside India ignore this rule.

1.1.3 Kerala Khadi and Village Industries Board(KKVIB)

The Kerala Khadi and Village Industries Board is statutory body constituted by the Act

of 1957 vested with the responsibility of organizing and promoting Khadi and Village

Industries in the State. The board implements through cooperative, registered institutions,

individuals and departmental units by importing or availing assistance from government

of Kerala, Khadi Commission and nationalized banks. The board has got 218 sales outlets

throughout the state. All India Khadi and Village Industries board, set up in 1953.

1.1.4 Khadi and Village Industries Commission (KVIC):

The KVIC is under the department of industry of India. The head office of KVIC is at Bombay.

The functions of KVIC are to organize, co-ordinate and assist all the activities of Khadi and

Village industries of India.

The important source of funds of KVIC are provisions from annual national budgets and

earnings from their own business activities.

They co-ordinate the functions of state level Khadi and Village industries board (KVIB) and

carry own their own business. They provide funds, raw materials, technical and other assistance

to the board. It provides valuable information to the beneficiary.

The Khadi and Village industry commission is charged with the planning, organizing, promoting

and implementing of program for the development of Khadi and village industries in rural areas

in corporation with other agencies engaged in rural development.

1.1.5 Structure of Khadi and Village Industries Board (KVIB)

Village Industries:

Village industries means any industry located in rural areas which produces any good or

renders any service with or without use of power and in which the fixed Capital

Investment (in plant machinery ,land building)per head of an artisan does not exceed RS

100000/-.All Khadi and Village Industries except service industries can be started only in

panchayat areas.

The board offers several financial schemes .The scheme are intended to help the rural

communities set up industrial units with minimal investments and yielding good returns.

These products are healthy and eco-friendly.

Over the years the board has assisted many village industrial units that provide

employment in the village industrial sector. The board established its own department units

providing different kinds of products. Besides the board extended financial assistance to

set up village industrial units.

1.1.6 First Myth about Khadi

It helps the poor according the Gandhiji, the poor don’t really need your help. But for

arguments let’s say that the city folks want to wear Khadi they do not have the time or

the inclination to spin it ,but they want to buy it .So government step in says “Ah we

can do employment generation with Khadi.” Annually 600 crores (6 billion) rupees of

Khadi are purchased ,consumers, so perhaps that many can employ the 40%

unemployment villagers of India.

1.1.7 Enhancement of Khadi Production

Unfortunately, people asking the question wasn't thinking about self sustenance, but rather of

comparing with the textile mills that held 99% of the market share. Since you can't motorize

hand-spinning, experts in the field dedicated to innovative the "Charkha" (the spinning wheel)

that are used to create Khadi. Amber-Charka is the name if the latest spinning wheel that is still

hand powered but 8xs more efficient because of its 4 spindles. Because the amber-charkha wasn't

coupled with an 8x increase in Khadi demand, is simply killed 8xs of the village's jobs. And in

fact, it not only killed the job, but also the villages themselves. In cities like Nagpur and state

like Andhra Pradesh, hundreds of weavers & Spinners committed suicides in the late 70's.

Technology, innovation, efficiency is not to be described. But if these advanced are created in

profit making sites, it annihilates the cultural fabric of an eco system and eventually, runs the risk

destroying the entire eco system itself.

When most people think of cotton, they think white. No one in this generation will even

remember that cotton naturally gross in any other colors like brown and yellow. Because of the

heavy textiles demand for more oven, the heavy cotton consumption by the mills created and

imbalance in the natural ecology, as the result, 80% of all pesticides used in Indian farms white

cotton, all farmers started producing white cotton, are used on cotton farms. To 'efficiently'

transport cotton to cartelized mills, it is compressed. Then, at the farms, lots of energy is

spending in carding the cotton to make in fluffy again.

Most Khadi produces now use "new and improved" ambar charka in India. You can't blame the

producers in a land were more that 350 million people live on less than dollar a day; they are just

trying to survive. But the confusion of the government policies, technologies and pundits are

creating these weird hybrid solutions that as simply not Khadi. Not only are amber charka

machine parts hard to maintain, it also requires long stable cotton silver that is used by textile

mills. The same long staple cotton that as increased the use of pesticides, destroyed cotton bio

diversity, and created many suitable form of inefficiencies. So this kind of Khadi movements id

far away from Gandhiji's vision of self reliance. Government provides rebates to subsidies the

cost of hand spun Khadi, but greedy institutions have now created hybrid Khadi polyester that

also qualifies for the rebate. Consumers, as result don't have a clue as to why buy Khadi. Khadi

propaganda says that Khadi generates the employment for the poor. And that it's a material that

"breathes". Surely, Khadi is thick to provide insulation in the winter and pours to provide

ventilation in the summers, and it feds good to wear but when we look in to the various youth

groups around the state of Gujarat we can find that the practical reason for not buying Khadi is

because it's expensive.

At present, Khadi is a bit more expensive today and that can change with the right policy and

better marketing, still, just as an original painting will never be cheaper as a print, hands spun

Khadi and block printing won't ever be able to complete with a 80 Rs t-shirt made from synthetic

material. But if production of chemical dies used to color our t-shirt will ruin the rivers, if the

mass cotton production will ruin the land, and the lack of jobs will run in the line of the common

man, the question really is, is it worth it? No, no one in their right minds will think so.

Root of the problem, through, is that "Khadi" itself is in a state of mass. Gandhians have become

idealist whose message is largely disregarded by the consumerist main stream. Village producers

are just trying to make their daily livelihood. Consumers are getting mixed signals from

government policies, propaganda and competition attempts against the textile industry, to top it

off, no one has paid any attention to fashion in Khadi. Government is trying to increase jobs, and

provide rebate but the Khadi Commission himself admitted that "our biggest problem that we

don't know to get the help to the right person". That is to say there is no infrastructure to

implement policies. Khadi stood for decentralized sustenance. But with the ambar charka, and

lack of accompanying increase in wages or jobs or Khadi demand (all of which can potentially

be blamed on the government policies), Khadi was left neither here nor there. Khadi pundits

came out and declared, "Khadi will soon take over the textile market". Instead of remembering

the principles of Khadi, they started creating extravagant shows, setting up huge infrastructure

and entering a centralized marketing system that they were ill-equipped to fight, that Khadi never

stood for. Not only are they loosing the fight, but they are in the wrong war.

Gandhi once said "live simply, so others can simply live". His interest wasn't in selling Khadi

and marketing consumerism. He wanted the common man to be self reliant, to be free from

market forces t think for him, to be alive in ways that are natural to them. Perhaps Gandhi's

message is too revolutionary for over.

1.1.8 Objectives of Khadi Board

The Kerala Khadi and Village Industries board is a statutory body constituted by the

Act of 1957 vested with the responsibility of organizing and promoting Khadi and

Village Industries in the State .The board implements the programs through cooperative ,

registered institutions ,individuals and departmental units by imparting/availing assistance

from government of Kerala , Khadi Commission and nationalized banks.

• Promotion of Khadi and Village Industries

• Comprehensive range of support to Khadi and Village Industries

entrepreneurs

• Marketing support to the beneficiary units of the Board

• Co-ordination and monitoring of around 25000 units which have

Come up in Kerala with the assistance of Board.

• Providing training to potential entrepreneurs in various sectors including

weaving and spinning ,pottery be keeping and a host of other activities.

• Formulations and implementation of focused programs and schemes

for the revival of side industries and units.

• Providing technical assistance to the upcoming unit .In order to

materialize the objectives board has formulated various schemes and

implemented theme successfully.

1.1.9 Importance of Board of Khadi Industries

• Khadi, it's handspun cloth made famous by Gandhi's promotion. Fifty years ago it had a

greater market share in India that any other material and today, willing connects one left

searching for reasons to wear it.

• Many Gandhians like Khadi Because Gandhiji like it. Most government officials

propound it because first, it's their job and second, it generates some employment for 'poor'. It's

questionable in consumers like it, considering that Khadi is less that 1% of the national textile

usage, but some are known to wear It because the materials is porous.

• Gandhiji promoted Khadi for self sustainability. He wasn't trying to generate employment

for the country and neither was he out to create a market about "help the poor" charity. His whole

promise was that every one, rich or poor or in between, should have access to food shelter and

clothing in a self reliant way. That is they should not create dependencies on cities, governments

or economies last they get corrupt. That was Gandhi's ideology, decentralized units of sustaining

ecology, simple, long lasting and corruption free, with cloth, the idea was to use hand spun

Khadi. The process would be all organic;

• Farming: Pick your own cotton

• Spinning: use the silver and a manual 'charkha' to create yam

• Weaving: weaving the yam to cloth

• Stitching: Tailor clothes from the yarn

• Each person needs not more that 25 meters of cloth per year, which can make 3 pairs of

cloths, a towel and a sheet. If person spun for 8 hours a day for 3 days, you will have enough

yarn to make your annual quota of 25 meters of Khadi. Then community wearers will weave the

yarn into cloth and a local tailor can stitch the clothes, [for the ambitions, weaving and stitching

can be learned in a matter of couple months] since no part of their process requires fancy

gadgetry or non-local material each of the 700000 villages of Indian can be self dependent for

their clothing.

1.1.10 Functions of Board of Khadi Industries

Some of the major functions of KVIC are:-

• The KVIC is charged with planning , promotion ,organization and implementation

of programs for the development Khadi and the other village industries in the rural

areas in co-ordination with other agencies engaged in rural development wherever

necessary.

• Its function also comprise building up of a reserve of raw materials and

implements for supply to producers creation of common service facilities for processing

raw materials as finished goods and provisions of facilities for marketing of Khadi and

Village Industries products apart from organization of training of artisans engaged in

these industries and cooperative efforts amongst them. To promote the sale and marketing

of Khadi and products of Village Industries or handicrafts, the KVIC many forge

linkages with established marketing agencies wherever feasible and necessary.

The KVIC is also charged with the responsibility of encouraging and promoting research

in the production techniques and equipment employed in the Khadi and Village Industries

sector and providing facilities for the study of the problems relating to it including the

use of non-conventional energy and electric power with a view to increasing productivity

eliminating and otherwise enhancing their competitive capacity and arranging for

dissemination of silent result obtained from such research

1.1.11 Competitors

Competition means the act of competing a contest and competitor is one who competes. It refers to rivalry among

various firms operating in a particular market that satisfy the same customer needs. The industry structure affects long

run profitability. Therefore the competitors should be understood and monitored. Their actions can spoil an otherwise

attractive industry, their weakness can be a target for exploitation, and their response to a firms marketing initiatives.

Can have impact on its success. Competitive information can be obtained from marketing research surveys,

recruiting competitors employees .Competitors are those companies who are producing technically similar products

are considered to be in the competition. The two means of competitive advantage of low cost of delivery and

differentiation, when combined with competitive scope of broad activities results in four generic strategies:-

• Differentiation

• Cost Leadership

• Differentiation Focus

 

Cost Focus The company in facing severe competition from the competitors and the industry is now following a

price at trend. The main competitors of Khadi village industries are:-

•  Kitex

• Bombay dying

• Mafathlals

1.2 Objectives of the Study

1.2.1 Primary Objective:

• To study the overall functions of Payyannur Khadi and overall performance of the

organization

• To fulfill the partial requirement of the MBA conducted by the Bangalore University.

1.2.2 Secondary Objective:

• To understand the working environment

• To understand the employer-employee relationship

• To understand the working of departments

• To find out strength, weakness, opportunities and threat

• To provide suggestion to the management to take efficient decision

CHAPTER-2

COMPANY PROFILE

2.1 History of the Organization

Payyanur was a major center of promotion of Khadi and still retain this tradition. Even today we

can see a lot of people wearing Khadi in Payyanur which is not commonly seen in other parts of

Kerala. This Khadi movement was started in Payyanur by the great freedom fighter CH

GovindanNambiar. UnnammanUnithiri of Karivellur and Vaidyar VP SreekandaPoduval also

did a lot for the promotion and propagation of Khadi. The patriotic poems of Mahakavi

Kuttamath and Kelu Nair also helped Khadi movement.

The Khadi movement was a part of Independence struggle. In order to boycott foreign clothes,

Gandhiji called upon the people to make their clothes by themselves. Khadar or Khadi is the

cloth made of hand spun thread by using the simple instruments called Charkha. Charkha was

also selected as the emblem in National Flag during the freedom Struggle. The Organization

called charkha Sangh was formed in 1925 with head office at wardah and Gandhiji was the

president of this organization until his death. The motive of this organization was to promote and

circulate Khadi among the people. In 1930, NP RagavaPoduval of Shornur came to Payyanur for

the formation and operation of Charkha Sangh. In 1934 Payyanur was selected as the head office

of Charkha Sangha’s Kerala unit and CK Kartha was the first secretary. After this Charkhas

became very popular in Payyanur and surrounding places. The thin and soft cloth made in

PayyanurSangh gained nationwide attraction and it got the brand name as “ Payyanur Special”.

When Gandhiji visited Payyanur in 1934, the Khadi activities of Payyanur was specially

congratulated by him. During 1937-39 when Rajaji became the Chief Minister of Madras

(Payyanur was a part of Madras state) a Charkha making unit was started in Payyanur with the

government financing. In 1941 the head office of the Kerala Charkha Sangh was shifted from

Payyanur to Kozhikode GandhijiAsramam but the production and selling units remained here, In

1946 Chief Minister of Madras, T.Prakasam, after consulting with Gandhiji took decision to

takeover five Khadi centers and Payyanur center was one among them. Gradually the Charkha

Sangh faded out of the Picture and the center fully came under the government control.

Even though it is very difficult to complete with the modern industrial world of today under the

new liberalization atmosphere, Payyanur Khadi is trying the best to survive. It is the

responsibility of each individual of Payyanur to do whatever he/she can to keep this industry

alive and thus to retain the rich tradition.

Khadi movement was a part of independence struggle, In order to boycott the foreign clothes,

Gandhiji called up on the people to make their clothes by themselves. Khadar or Khadi is the

cloth of hand-spun threads using the simple instrument like “charkha’. The charkha was also

selected as the emblem of the national flag during the freedom struggle.

Payyanur was a major centre of promotion of Khadi and still retains its tradition. Even today we

can see people wearing Khadi in Payyanur which is not commonly seen in other parts of

Kerala.The Khadi movement in Payyanur was started by the great freedom fighter of payyanur,

C.H.GovindanNambiar.

Khadi is Indian handspun and hand woven cloth. The raw materials may be cotton, silk or whool

which are spun into threads by spinning wheel called charkha.

Khadi is versatile fabric, cool in summers and warm in winters. Being a crude material, it

crumbles faster than other preparations of cotton. In order to improve the look, Khadi is often

starched to have a stiffer shape. It is widely accepted in fashion circle these days, Mahatma

Gandhi began promoting the spinning of Khadi for rural self employment in 1920s in India. He

also wanted to spread the message of not using foreign clothes. The freedom struggle revolved

around the use of Khadi fabrics and the dumping of foreign made clothes. Thus it symbolized

political ideas and independence itself, and to this day most politicians in India are seen only in

Khadi clothing. The Flag of India is only allowed to be made from this material, although in

practice many Flag, manufacturer especially those outside of India ignore this rule.

The Kerala Khadi and village Industries Board is statutory body constituted by the Act of 1957

vested with the responsibility of organizing and promoting Khadi and Village Industries in the

state. The Board implements through cooperative, registered institutions, individuals and

departmental units by imparting or availing assistance from government of Kerala Khadi

Commission and nationalized banks.

The board has got 218 sales outlets throughout the state which includes 40

KhadiGramaSoubhagyas and I mobile sales van. In 2006-07 the board has achieved sales of 12

crore. In order to enhance the sales, the board conducts exhibition in festival seasons. Financial

assistance for exhibition is provided by Kerala Khadi and village Industries Commission. Also

the board regularly participates in the international trade fair at New Delhi every year.

Khadi is an Indian fabric and it is also known by another name “Khaddar”. It is made by

spinning the threads on an instrument known as ‘charkha’. During pre-independence era the

movement of Khadi manufacturing gained momentum under the guidance of father of nation

Mahatma Gandhi. The movement of Khadi manufacturing and wearing started as to discourage

the Indians from wearing of foreign clothes. Its concept was developed by Mahatma Gandhi, It

was a symbol for political agendas during the fight for independence in India against the British

rule. It was primarily a means to provide employment to the unemployed rural population of

India at that time. The Indian flag has to be also made from Khadi material. Thus it holds

national importance; we could even call it the national fabric of India.

Payyanur has won the reputation of being called “second Bardoli” by its active participation in

the national movement. As a matter of facts Khadi work has been initiated in and around

Payyanur during early 1922,as a part of national movement.

Payyanur was one among the 7 centers selected for the intensive Khadi work by the government

of Madras in the year 1947. Till then it was run by All India Spinners Association. All India

Khadi and village Industries Board. In the initial period after selecting this for the intensive

Khadi work, the center was run by the rural development department and subsequently by the

Khadi department of the government of Madras, On reorganization of state in 1956 the centers

was transferred to the control of director of industries and commerce, government of Kerala.

When the Kerala Khadi and village Industries Board was constituted for the implementation of

Khadi and village Industries Programs of the state, the government of Kerala decided to hand

over the center to the board for its efficient and smooth functioning accordingly the center was

transferred to the control of Kerala Khadi and Village Industries Board on 1/11/1959. Since then

it is run as a production/marketing unit of Kerala Khadi and village Industries Board I Kannur/

Kasargod districts are carried under the control of the Payyanur Khadi Center. It is one of the

major Khadi production/marketing centers in India.

A major cotton processing unit established under Kerala Khadi and Village Industries Board at

Ettukudukka is working under the control of this center.

2.1.1 Chronology of Events

• 1920 Nagpur session (1920) the Indian national congress decided to encourage

“KHADI”. The first KHADI production centre established at Kathiawar, Gujarat,

mahatma Gandhi used to refer to KHADI as “the livery of freedom”

• 1923 development of all India board under the Indian National congress by Gandhiji.

• 1925 setting up of all India spinners association

(AISA)/Akhil Bharat charka Sang.

• 1935 all India Village Industries Association (AIVIA) was formed.

• 1946 govt. of madras sought the advice of Gandhiji and set up a department for KHADI.

• 1948 govt. of India recognized the role of rural cottage industries in the industrial policy

resolution, 1948. Constituent assembly included cottage industries in rural areas among

the directive principles of the constitution in article 43. These ideas were elaborated in the

first five-year plan, which laid down the policy framework for setting up of a body for

KHADI and village industries. Central govt. also recommended for setting up of a board.

• 1953 in accordance with these recommendations, Govt. of India set up all India

KHADI& Village Industries Board in January,1953.(AIKVIB)

• 1955 it was decided that a statutory body should replace the board

• Industry passed KHADI and village commission act 1956

• 1957 Kerala KHADI and Village Industries Board act (act IX) was passed and the board

came into existence.

2.2 Vision and Mission of the Company:

Vision Statement

KKVIB Payyanur is committed to customer delight, through total quality management and

continuous involvement with the co-operation and co-ordination of all the employees

Activities to achieve the Vision

Have to set up common service centers and training facilities for training promoters to

organise new institutions take up Khadi and village industries activities in hitherto

untouched area so that intensive area development on self reliant basis for full

employment through Khadi and village industries become possible .

Every production and sale centre of Khadi should establish, close contact through

seminars and one day camps without least 100 new customers of Khadi.

The workers of institution should be reoriented in the philosophy of Khadi so that

they understand better its relevance and importance in the present national and

international context.

The bigger institutions should treat the smaller institutions in brotherly spirit and

guide them in developing Khadi work.

The experience, gained in the areas where GrambhimukhKhadi has been developed

should be made the basis of work in other areas.

Experiment with the application of power in spinning process should be conducted in

those areas were Gram bhavana has been created.

The freedom and initiative of the Khadi institution and their workers should be

preserved.

The major question before the nation of providing employment to the large number of

unemployed in the rural and urban areas can only be solved through the Khadi and

village industries program .These can alone provide gainful employment, in- crease

production and relieve the distress to the unemployed.

Mission

To build up the reputation of Kerala Khadi and Village Industries Board, Payyanur by

satisfying its customers and to keep up the ancient Indian tradition and culture.

Activities to achieve the Mission

Khadi is a symbol of our national freedom struggle and of our commitment to maximum possible

self-reliance.  The KhadiGramodyog institutions are engaged in providing livelihood to millions

of spinners, weavers and artisans in the rural areas.  To survive, these institutions need active

Government support, by way of provision of credit, access to technology and market support.  In

the mid fifties, a comprehensive plan was drawn up by the Government of India, in consultation

with the leaders of the Khadi Movement, to revitalise this important segment of our economy.

However, no effective action has been taken to tackle the problems faced by Khadi and other

village industries.  As a result, unemployment in the rural areas is increasing day by day.

Quality policy

Quality policy of KKVIB ,Payyanur is to manufacture product as per national or

international standard and make them available as per the customer`s requirements. A well

defined quality management system has been implemented. This system is continually

reviewed to enhance its effectiveness and updated to make changing needs.

.2.3 Area of operation

The Payyanur Khadi centre widening this area of operation in 82, 27 villages of Kannur

and Kasargod district respectively.

2.4Organizational Structure

2.5 Details of units under Payyannur Khadi center1) Bed Manufacturing Unit

This unit was started in 1990 at Elampatchi in Kasargod district. This unit produces superior

cotton beds which are marketed throughout the state. It uses cotton for bed manufacturing, which

is purchased on quotation from ‘Thiruvallur Silk and Cotton Industry' at Bodhinay kannur. About

19 workers are engaged in the manufacturing of beds.

2) Honey Processing Unit

Honey processing unit has started its operation in the year 1996 at Kunhimangalam in Kannur

district. Honey processed at this centre is certified with the prestigious AGMARK which enables

the units to securely position this product throughout the country.

3) Readymade Garment Making Unit

This unit has been operating since 1980 in the PKC. It manufactures readymade shirts, saleable

through "Bhavans" and other items necessary for Government hospitals. The unit has undertaken

to manufacture of 'summer cool' shirts which where introduced by the Board. At present there are

22 workers and 1 supervisor employed.

4)Cotton Processing Centre at Ettukudukka

This centre was established in 1992 with an investment of Rs 2.5 crores for the manufacture of

rowing for the production of Khadi yam. This project was introduced with a view to provide

efficiency in cotton processing.

5) Spinning Unit

There are 67 spinning unit under PKC (Payyannur Khadi Center) from which various varieties

of yams such as hard, medium, fine, muslin and polyester are produced.

6) Weaving Unit

There are 51 weaving centre including 5 sub centre for PKC. Weaving in handloom is done

using the processed yam. Frame looms and semi automatic looms are generally used in this

process. The centre introduces innovative designs according to the modem trends.

Table.1 No of UnitsSpinning unit 67

Weaving unit 51

KhadiGramaSoubaghyas 03

KhadiSoubaghyas 29

GramaSoubaghyas 17

Garment making centers 01

Bed manufacturing unit 01

Honey processing unit 01

Yarn dyeing unit 01

Bleaching unit 01

Cotton processing unit 01

2.6 Product Profile

Generally a product profile consists of the various products and service offered by a company to

its customers. The following are the various garments offered by Khadi to its customers.

• Dhotis: The dhoti also known as pancha, mardani or veshti is a traditional men's

garment worn in India, Pakistan,Bangladesh and Nepal. It is a rectangular piece of unstitched

cloth, usually around 4.5 meters (15 ft) long, wrapped around the waist and the legs and knotted

at the waist, resembling a long skirt. Dhotis are one of the important type of garment product of

Khadi. Khadi manufactures dhotis in cotton, muslin, polyester clothes. There are more than five

varieties of dhotis offered by Khadi

• Sarees: Another important type of product is sarees. Saree is the dress for womens most

commonly using in India There is good supply of Khadi sarees in the market. Khadi produces

sarees in silk, polyvasthra,cotton and muslin clothes, It mainly on women customers.

“Payyanurpattu” is historically famous

• Bed sheets and pillow cover: Now a day’s Khadi offer a variety of home linen products

to its customers. Bed sheets and pillow covers are one of the important parts of home linen

products of Khadi. There is a good market for home linen products of Khadi in both Indian and

foreign countries.

• Ready-mades: As apart of diversification Khadi started the production of ready-mades.

Mainly the readymade items of Khadi consist of shirts and churidars. Shirting’s are one of the

important product of Khadi which is very popular in the market.

• Honey:

Honey is a sweet food made by bees using nectar from flowers. Payyannur Khadi have one

honey processing unit in Kunhimangalam there the honey are processing and bottling. Allover

India Khadi industries also in the field of honey.

• Bed: Bed is one the product of Payyannur Khadi which manufacturing at Elampachi in

kasargod district. Payyannur Khadi produces superior cotton beds which are marketed through

out the state. Only cotton using for produces bed ,which is purchased on quotation from

‘Thiruvalur’

• Other items: Other items of Khadi garments include mosquito net, operation gown,

towels, curtains, etc. some of these are seasonal products, the best example is mosquito net.

DEPARTMENT STUDY

CHAPTER-3

DEPARTMENTAL STUDY

3.1Production Department

Among all the functional areas of management, productions are considered to be crucial in any

industrial organization. Production is the process by which raw materials and other inputs are

converted in to finished products.

The function of this department is very much important. This department is headed by the

production Manager. Under this unit manager, Supervisors, workers are working. The main

important aspects of this department are to ensure about the quality assurance of the each product

that were making at their own premises. Production is the bigger picture of various functions that

affect the overall process and quality of an organizations service or manufacturing. The

production management deals with processes, resource allocation, and quality to run the business

day to day in an efficient and effective manner production management techniques are used in

both manufacturing and service industries. The production manager are responsible for managing

both physical materials doing a wonderful job to make their effort worth fullness

It needs no exaggeration to say that production makes significant contribution to society’s

wellbeing. The standard of living of people depends on production of goods and services.

The Payyanur Khadi Center mainly focuses on the production of Khadi products. It has got a

wide production area.

3.1.1 Objectives Production Department

Production is an organized activity in a manufacturing organization. Each organized activity must spell out its

objectives so that its existence can be justified on the basis of the degree of attainment of these objectives.

• The unit cost of the product should be estimated carefully and efforts should be made to stick to the cost

standards

• The industry’s production department should take utmost care in maintaining quality levels

• Setting of proper manufacturing quality levels

• Setting of proper manufacturing schedules to ensure time lines.

• Optimum utilization of inputs of production like men, material and machines.

Table.2

Total Production

Year Total production

2012 7.5 cr

2013 9 cr

3.1.2Production Process

• Cotton Processing/Blow Room Process

Cotton which are obtained from the cotton plant having some impurities like sand, stone etc are

taken for processing. During the dying and loading processing too many impurities are get in to

the cotton. To remove these are some process which are called BLOW ROOM PROCESS. The

BLOW ROOM PROCESSES should be done in closed warm room because in moist condition

the cotton will absorb moisture and it will not be suitable for making the thread.

• Apron Process

This process is done in a long machine containing a long belt to feed the cotton. This is used to

remove the impurities from the cotton by the sliding of the cotton through the belt.

Some of the impurities will fell down the belt.

• Dedster

This machine is used to remove the dust particles from the cotton. When we feed excess amount

of cotton to this machine, the machine will struck. This problem may be overcome by pulling out

some of the cotton from the machine manually with long steel pipes.

• ERM(Tuff Separation)

This machine is used to remove the impurities from the cotton. This is used for separating the

fibers of cotton.

• Sketcher

This machine is used to make LAPS. When certain amount of cotton is wound on the lap, it will

automatically drop down. The part of the sketcher which does the rolling and finishing of laps is

called FINISHING SKETCHER. The laps are almost pure still there are impurities on it.

• Carding

The laps are fed in to the carding machine. The lap containing a little impurity is removed by the

carding machine. The laps are made to carding taps in the carding process. The carding taps are

like thick thread.

• Drawing Frame

The drawing frame consists of 2 machines, which are drawing breaker and drawing finisher.

These machines are used for making the carding taps thinner. This is called drawing tap.

• Simplexer

This machine is used for making thin thread and wound on the fiber pipe. This role of cotton

thread is called silver. When the supply of drawing tap is topped the simplexer machine will

stops, the thread will join manually then start the machine.

• Charkha

Charkha is the oldest spinning machine. It is used to spin the thread from cotton. Now in Khadi

Industry the modern from of charkhas are used. Using this type of charkhas large wound of

threads can be produced.

2) Dyeing

Dyeing of clothes is done for coloring and for giving strength for cloth.

Dyes

Some natural dyes exist, but most used today are synthetic. These are organic chemical such as

benzene. The dyes can be applied to the fabric or fabrics using either a direct or indirect process.

Some of the dyes used in Khadi are:

• Brown R

• Red RB

• Black BB

• Blue RS

• Jade Green

Direct Dying

Today in most industrial process dyes can enter the fiber and colors it in one step without the

need of mordent. The dye is dissolved in hot water then stained and added to the fabric.

Sometimes the dye is mixed with salt to help fix the color.

Indirect Dying

In some dyeing process a number of steps are needed to dye the fiber. In one process a chemical

called a mordent is first added to fiber, which is then dyed. The mordent molecules fix the dye to

the fabric.

Dying Process

a. Boiling of Thread

The threads to be boiled are first kept in a huge tank for boiling. Heat is given from the bottom of

the bank. The thread is boiled with oil, soap and caustic soda. It is boiled at a temperature of 80

to 100 degree Celsius and the time required is 13-36 hrs. After boiling the thread is taken out of

the tank and put into squeezing machine for squeezing the thread to remove the water content.

b. Dying

• Take 40 degree hot water in a tank.

• Add caustic soda soap and oil to the tank (these are used to increase solubility of water)

• Add the color required and mix the color well in water

• Mix the required cotton to the tank mix well by turning the ends by hand

• After 20 minutes take the thread from the tank and wash with soap and water and then

squeeze.

• After squeezing allow the thread to dry in a shady place

3) Weaving

One of the most common means of marketing clothes is weaving. This is an ancient craft. Most

weaving is carried out on a frame called Loom. These can be either machine powered factory

loom or hand loom. In Khadi industry handlooms are used.

• Looms

A set of parallel threads called WARP are stretched length wise on the LOOM. The threads

which are run width wise are called WEFT is carried over and under the WARP by a device

called SHUTTLE. This process interlaces the WARP and WEFT.

• Stitching

Once the weaving is finished the fabric is taken for stitching.

• Pattern

Once the design has been decided, it is translated in to pieces, made from a paper or card. These

are used as a guide for cutting out the fabric.

• Sewing

The cut pieces are moved to the persons whose job is to match them up for the sewing machine.

Each machinist concentrates on the particular part of garment, such as SLEEVES, COLLERS etc

• Pressing

Once the clothes are sewn together, they are laid on large flat table to be pressed. Then a final

inspection is held to check the quality of the finished goods.

Packaging and Folding

The last thing is packing and folding the garments. Then these set of garments are being sold to

the customers.

Qualifying Tests

Once the cotton is processed from the firm through Blow Room Process, it is send to Tamil Nadu

for qualifying tests.

After the quality testing it is send back to the production area.

It’s indicating the quality maintenance of the Payyannur Khadi

Details of Production in Village IndustriesName of industry Item Production

Bed

manufacturing

Garment making

Honey-processing

2012-13 2011-12 2010-2011

Bed&Pillow

Readymade

2,95,56,581

1,01,95,137

2,40,700

2,48,05,751

58,72,425

3,02,380

1,76,94,978

55,19,696

3,19,034

Table.3

3.2 Marketing Department

Marketing is the existing dynamic and contemporary field of study. It is an enlightened

and socially oriented discipline because it aims to identify, serve the satisfy human needs.

Marketing involves individuals and organisations performing functions that seek to satisfy

human wants by facilitating exchange relationship. It is needed and ancient art. Its emergence

as a management thinkers and practitioners the world over marketing as the most

important of all marketing functions in any business. Marketing is all pervasive in the

present day world.

Today marketing must be understood not in the old sense of making a sale “telling and

selling” but in the new sense of satisfying customer needs.

Marketing is a total system of business activity designed to plan, price, promote and

distribute want satisfying products to target market to achieve organisational objective.

3.2.1 Marketing And Sales Of KKVIB

The Kerala Khadi Village Industries Board(KKVIB) has got 218 sales outlets throughout the

state -which includes 40 Khadi soubhagyas, 131 grama soubhagyas amd 1 mobile sales.

In 2006-07 the board has achieved the sales of 12 crore in order to enhance the sales

the board conducting sales exhibition in festival seasons. Board conducts state district

level sales exhibitions worth the financial assistance of KVIC. The board is regularly

participating in the international trade at New Delhi every year. The board participating in

the sale exhibitions conducted by other state as well. A special sales exhibition is also

conducted to promote sales of village industries products produced by the units financial

under REGP scheme.During off sessionsTV advertisements and flex boards and on season

newspaper advertisements are used as sales promotion technique.

The directorate of publishes a monthly journal “Jagriti” in english and hindi. Jagriti is

news magazines and carries stories ,events, features interviews etc pertaining to Khadi

village industry sector from all commers of the country.

In addition ,a large number of project profile on major industries are also available with

the Directorate of Publicity, Mumbai.

The Directorate of publicity also prints several books from time to time including

booklets,broshers etc on special occasions.At present it can readily provided:-

• A guide on how to start village industries in Khadi village industries sector

• A handbook on training

• Khadi& village industries technologies and equipment

• Folders on rural employment generation programme

• Good amount of literature about Khadi village industries.

People Education Program

The program provided field -level activities, for enabling the public to know about the

organization as well as its schemes aimed at creation of employment opportunities in rural areas.

The KKVIB provides financial assistance for the purpose through budgetary allocation. KKVIB

program are promoted through advertisements, in print and electronic medium, film and

hoardings etc.

Physical Distribution

In the field of marketing channel of distribution indicates the roots of path through which goods

and services flow or move from producer to consumer.

The distribution channel is the set of marketing institutions participating in the marketing

activities involved in the movement of flow of goods or services from the primary producers to

the ultimate customers.

The private shop also deals in the sales of village industries products on a commission basis. The

Khadi commission and Khadi boards provide assistance to open bhavan for modification of

existing bhavan where ever necessary.

Pricing

Price is the exchange value of goods or services in terms of money that is, type of the product is

what the seller feels it worth in terms of money to the buyer. They send to the price list of

different Khadi products to marketing and producing institution.

The production centers or dealers have no right to fix alter the price fixed by the Khadi

commission on Khadi products. They cannot sell the Khadi products at the price is the higher

than the price list even if the unit cost of production is more than the selling price.

In case of village industries products, the institution can fix the price. Most of the village

industries are small scale units. So they cannot attain the economics of large scale production by

fixing a counter acting price to village industries products.

Promotional strategy

Promotion is the process of marketing communication involving information, persuasion and

influence. Promotional activities includes advertising, sales promotion, public relation and

personal selling. These promotional activities are called promotional mix.

In these promotional mixes advertising is given little importance in Khadi products. Rebate and

discount are main promotional strategy following by Khadi It gives some more emphasis on

sales promotion by allowing seasonal rebate to the Khadi products. The rebate is shared both

Khadi commission and Khadi board. It also conducts trade fairs of Khadi and village industries

products.

Marketing Networks:

The textiles manufactured are marketed through the `Gramasoubhagya`, Khadisoubhagya

functioning under agency terms. There are 13 gramasoubhagyas and 15 gramashilpas

spread in the Kannur and Kasargod districts. Exhibitions and festival fairs are arranged

to boost up sales. The board also participates in the international industries and trade fair

conducted every year at NewDelhi.

General problems of Marketing

1. The Company does not fully understood target customers

2. The company needs to better define and monitor opportunities

3. The company is not good at finding new opportunitied

4. The company’s marketing planning process is deficient

5. Product and service policies need tightening

6.The company’s brand building and communication skill are weak.

7. The company is not organized for effective and effective and efficient marketing

8. The company has not made maximum use of technology.

3.2.2 Marketing Department Chart

MARKETING DIRECTOR

DEPUTY DIRECTOR

MARKETING OFFICER

CLERK

3.3 Finance Department

3.3.1 Introduction and DetailsFinance is regarded as the life blood of business enterprise. This is because in the modern money

oriented economy, Finance is one of the basic foundations of all kinds of economic activities. It

is the master key which provides access to all sources for being employed in manufacturing and

merchandising activities. It has rightly been said that business needs money to make more

money.

However, it is also true that money brings more money, only when it is closely linked with

efficient management of its finance.

Finance may be defined as the provision of money at the time it is wanted. Business is that

business activity which is concerned with the acquisition and conservation of capital funds in

meeting financial needs and overall objectives of the business enterprise.

Financial management is concerned with the efficient use of an important economic resource,

namely capital funds. The main objectives of financial management includes,

• Building up reserves for growth and expansion

• Ensuring maximum operational efficiency by efficient and effective utilization of finance

• Ensure financial discipline in the organization

The Payyanur Khadi Centre is owned and managed by the Kerala Khadi and Village

Industries Board,which is under the control of Kerala government

The Government provides certain subsidies and funds in order to carry out the production

activities. The Government provides around 50 lakhs for purchasing the cotton every year plus

the wages for the workers and also certain amount of money is granted in order to meet other

expenses.

The various functions performed by the financial manager in an organization include,

• Estimation of capital requirement accurately

• Deciding the type of securities to be issued and the relative proportion between them

• Dispose the surplus or profit earned in accordance with the objective of maximizing

wealth

• Ensure adequate supply of cash

• Exercise the proper control over the use of fund

In case if the center is not able to raise the funds for further production, it takes the profit from

the sales as working capital for next set of production.

AUDIT DETAILS 2012-2013

• Name of unit : Payyannur Khadi Centre

• Period of audit : 1/4/12 to 31/3/13

• Name of auditors : Samuel Pothinal, SCI

P. Subhash, JCI

Notable facts are given below.

Total sales

Khadi : 104046821

Poly : 47,11,966

Silk : 49.83,555

VIP : 41,49,318

Yarn : 1,59,52,911

Silver : 54,78,037

13,93,22,608

G/P & N/P DETAILS

Textile trading

G/P:4,25,35,626

N/P:2,50,16,004

Cotton processing unit trading

G/P: 9,46,004

N/P: 7,83,563

TOTAL

G/P:4,34,81,630

N/P:2,57,99,567

3.3.2 Finance Department Chart

FINANCIAL ADVAISOR

ACCOUNTING OFFICER

ASSISTANT REGISTRAR

CO-OPERATIVE INSPECTOR

3.4 Human Resource Department

People are the source of productive effort in an organization. Organizational performance

depends upon the individual performance. If the effort of every individual are coordinated and

directed towards the realization of well established objectives, the synergy so achieved should

demonstrably the sum total individual performance.

Human resources is the set of individuals who make up the workforce of an

organization,business sector, or economy. "Human capital" is sometimes used synonymously

with human resources, although human capital typically refers to a more narrow view (i.e., the

knowledge the individuals embody and can contribute to an organization). Likewise, other terms

sometimes used include "manpower", "talent", "labour", or simply "people".

The professional discipline and business function that oversees an organization's human

resources is called human resource management (HRM, or simply HR).

An enterprise, in its basic form, is an assemblage of human beings banding towards for mutual

benefits. Consequently and inevitably, therefore, enterprise is made or unmade by the quality and

behavior of its people. The distinguishing factor of an enterprises, is irrefutably, the ability of its

human resources to face up to challenges and use its vast potential to deliver required result. For

all other resources whether land or capital, to be effectively utilized, it is the human resource

approach which has to be properly and adequately maintained. Based on the preparations that the

people are the central resources in any organization and in any society, it concerns itself with

growth and betterment of employees towards higher level of capability, productivity and

satisfaction.

Human resource management is the systematic control of a network of interrelated process

affecting and involving all members of organization.

The road of management is to integrate the various components and prevent fragmentation and

need less specialization of labour.

3.4.1 Recruitment

Recruitment is the process of searching the prospective candidate and stimulating them to apply

for the job. The Kerala Khadi Village Industries Board undertakes the recruitment through PSC

test.

Rules and Procedure of Recruitment by PSC

1. These rules shall be called the Kerala Public Service Commission Rules of Procedure and

shall come into force on and from the 16th day of August 1976.

2. In these rules, unless the context otherwise requires,

(a) “Advice list” means list of candidates drawn from the ranked list and arranged on the basis of

the rules of recruitment relating to the post in respect of the vacancies reported from time to time.

(b) “Commission” means the Kerala Public Service Commission;

(c) “Examination” includes written examinations, Practical Examinations, Physical Efficiency

Test, Oral Test (Interview) and any other test or examinations which the commission may deem

fit to hold;

(d) “Gazette” means the Kerala Government Gazette;

(e) “Government” means the Government of Kerala;

(f) “Member” means a Member of the Commission and includes the Chairman thereof;

(g) “Ranked List” means the list of candidates arranged in the order of merit either on the basis

of the interview or examination or by both;

(h) “Service” includes the State Services and Subordinate Services referred to in the Kerala Civil

Services (Classification, Control and Appeal) Rules, 1960 or any other service as may be covered

by appropriate legislation providing for the exercise of additional functions by the Commission.

3. The Commission may conduct all or any one or more of the following examinations to assess

the merits of candidates considered for recruitment to a service or post;

(i) Written Examination.

(ii) Practical Test.

(iii) Physical Efficiency Test

(iv) Oral Test (Interview)

(v) Any other test or examination, which the Commission may deem, fit to hold.

4. Where a written examination and/or a practical test is conducted by the Commission for

recruitment to a service or post, the Commission shall-

(i) Announce:

(a) the qualifications required of the candidates for the examination

(b) the conditions of admission to the examination including the fees

(c) the subjects, Scheme or syllabus of the examination, and

(d) the number of vacancies to be filled from among the candidates for the examination.

Provided that where the exact number of vacancies to be filled is not ascertainable, the

Commission may either announce the approximate number of vacancies to be filed or state that

the number of vacancies has not been estimated.

(ii) invite applications and consider all the applications so received,

(iii) make all arrangements for the conduct of the examination for the candidates whose

applications are found to be in order, and

(iv) prepare a list in the order of merit of such number of candidates as the Commission may

determine from time to time.

Provided that the Commission may also prepare separate ranked lists in the order of merit of

candidates coming under separate groups in accordance with the qualifications or other

conditions as stipulated in the notification.

Provided further that for the purpose of satisfying the rules of reservation of appointment to

Scheduled Castes, Scheduled Tribes and Other Backward Classes also the Commission may

prepare such supplementary lists as found necessary from time to time in the order of merit of

the candidates belonging to such classes.

5. Where an oral test (interview) alone is to be conducted by the Commission for recruitment to a

service or post the Commission shall: -

(i) announce the qualification and other conditions including fee required of candidates and the

number of vacancies to be filled-up:

Provided that when the exact number of vacancies to be filled is not ascertainable the

Commission may either announce the approximate number of vacancies to be filled or state that

the number of vacancies has not been estimated;

(ii) Invite applications, consider all applications so received and interview the candidates whose

applications are found to be in order:

Provided that where the number of qualified applicants is unduly large having regard to the

number of vacancies the Commission may restrict the number of candidates to be called for the

oral test (interview) to such extent as they may decide after conducting any examination as they

deem fit.

Provided further that the Commission may also restrict the number of candidates to be called for

oral test (interview) on the basis of any one or more of the following criteria: -

(a) Higher qualification

(b) Higher marks

6. Where the oral test (interview) is conducted by the Commission, Commission shall invite the

appointing authority and/or the Head of Department concerned to be present or to appoint a

representative to be present and the Appointing Authority and/or the Head of Department or his

representative so present may take part in the deliberations of the Commission but shall not be

entitled to award marks:

Provided that the Commission shall invite, wherever they consider it necessary, any person or

persons with expert knowledge in particular subjects to be present at the interview to assist the

Commission but such person or persons shall not be entitled to award marks:

Provided further that for the interview of candidates for recruitment to any post in the Kerala

Legislature Secretariat the Commission shall request the Speaker of the Kerala Legislative

Assembly to be present or to depute his representative to be present and the Speaker or his

representative so present may take part in the deliberations of the Commission, but shall not be

entitled to award marks:

Provided also that for the interview of candidates for selection to posts which are common to

more than one department the District Collector of the area in which the interview is conducted

or his nominee shall be invited, instead of the Head of Department.

7. The deliberations of the Commission at the interview of candidates including award of marks

to the candidates shall be kept secret and this rule shall be binding on the Head of Departments

or their representatives or other experts who are present at the interview.

8. It shall be the duty of the Heads of Departments, their nominees and other experts to be

present at the interview at the appointed time in response to the invitation of the Commission and

to co-operate with the Commission in the fair conduct of selection.

9. The Heads of Departments/their representatives and other experts who violate rule 7 and 8

above or misbehave or act in any manner so as to affect the fair conduct of selection, shall be

deemed to be guilty of misconduct and shall be liable for disciplinary action and/or other penal

action as per law.

10. Notwithstanding anything contained in these rules the Commission may in consultation with

the Government adopt for purposes of recruitment in any particular cases or class of cases a

special procedure as more appropriate than the one prescribed in any of these rules.

11. A decision as to the following shall be taken by the Commission in respect of all selections

made by them.

(i) Whether any candidate possesses the prescribed qualifications for the post;

(ii) the basis on which the marks should be awarded;

(iii) the minimum or minima of marks for inclusion in the ranked list;

(iv) the manner in which the practical examination, physical efficiency test or any other test or

examination is to be conducted.

(v) any other matter incidental to the selection.

12. All the candidates interviewed and who obtained not less than the minimum marks fixed by

the Commission shall be included in the ranked list prepared in the order of merit:

Provided where the candidates have been called for interview for the purpose of satisfying the

rules of reservation alone such candidates who have got not less than the prescribed minimum

marks in the interview shall be included in the supplementary list or lists arranged in the order of

merit among the candidates belonging to each class.

Provided further that the Commission may also prepare list or lists of such categories of

candidates who have got not less than the prescribed minimum marks in the interview and who

are entitled to priority according to the terms of the notification inviting applications.

Provided further that the Commission may also prepare lists of over aged candidates who have

secured not less than the prescribed minimum marks in the interview and who are eligible to be

considered for appointment in the absence of candidates who conform to the rules regarding age

limits.

12A. Where preferential qualification is prescribed for a post, the ranked list relating to it shall

be prepared in the manner stated below:-

(i) In cases where minimum qualification is prescribed with the condition that candidates with

certain additional qualification will be preferred, the Commission shall prepare only one ranked

list. Separate marks shall not be awarded for the preferential qualification. Between two

candidates scoring the same number of marks at the written test/practical test or interview or

both the candidates possessing the preferential qualifications shall be ranked above the candidate

securing the same number of marks and not having the preferential qualification.

(ii) In cases where the qualification for a post is so prescribed that candidates possessing a lower

qualification will be selected only in the absence of candidates with certain higher qualification,

the Commission shall prepare separate ranked list in respect of candidates possessing the higher

qualification and the lower qualification.

13. The ranked lists published by the Commission shall remain in force for a period of one year

from the date on which it was brought into force provided that the said list will continue to be in

force till the publication of a new list after the expiry of the minimum period of one year or till

the expiry of three years whichever is earlier:

Provided that the above rule shall not apply in respect of ranked lists of candidates for admission

to Training Courses that leads to automatic appointment to Services or posts and that in such

cases the Ranked Lists shall cease to be in force after one year from the date of finalisation of the

Ranked Lists or after one month from the date of commencement of the course in respect of the

last batch selected from the list within a period of one year from the date of finalisation of the

ranked lists whichever is later.

Provided further that the provisions of the proviso above mentioned shall not be applicable for

the selection for admission to the Forest Rangers Course and also for admission to the Diploma

Course in Forestry for which selections have to be made annually in accordance with the

instructions of the Government of India issued from time to time. For these selections, the

Ranked Lists will be in force only for a period of three months from the date of finalisation of

the Ranked Lists or one month from the date of commencement of the course whichever is later.

Provided further that the Commission may take steps for the preparation of a new ranked list

wherever necessary even before the expiry of the period of one year of the ranked list, by

inviting applications but that the ranked list prepared in pursuance of the said notification shall

be brought into force only after the expiry of the period of one year of the existing ranked list.

Provided further that a ranked list from which no candidate is advised during the period of one

year from the date on which it was brought into force shall be kept in force till the expiry of three

years from the said date and in a case where no candidate is advised from the ranked list till the

expiry of the said period of three years, the duration of the ranked list shall be extended by the

Commission for a further period of one year or till at least one candidate is advised from the list

whichever is earlier.

Provided further that if the Commission is satisfied of the existence of a general ban not

exceeding one and a half year in the aggregate duration declared by the Government on the

reporting of vacancies, to the Public Service Commission, they shall have the power to keep

alive the ranked lists which are normally due to expire during the period of the above said ban or

within 7 days of the cessation of the ban, for a further period of 30 days from the date of

cessation of ban. If the Commission is satisfied of the ban and its consequences they shall issue a

notification keeping alive the ranked list in the above manner and shall advise candidates to the

vacancies which actually arose during the normal period of validity of the ranked list and

certified to be as such by the Appointing Authorities reporting vacancies to the Commission.

14. The Commission shall advise candidates for all the vacancies reported and pending before

them and the vacancies which may be reported to them for the period during which the ranked

lists are kept alive in the order of priority, if any, and in the order of merit subject to the rules of

reservation and rotation, wherever they are applicable.

Provided that the advice of candidates by the Commission from the ranked list kept alive under

the 5th Proviso to 13 shall be confined to the vacancies that actually arose during the normal

period of validity of the ranked lists under Rule 13 and certified to be as such by the Appointing

Authorities reporting vacancies to the Public Service Commission.

prolongation under the 5th proviso to Rule 13 shall not be deemed to be part of the normal period

of validity of the ranked list under Rule 13.

15. The ranked lists prepared by the Commission shall in the first instance be published in such

manner as the Commission may deem fit and thereafter they shall also be published in the

Gazette and the ranked lists shall be deemed to have come into force from the date of finalisation

of the lists as indicated in the lists. The advice lists of candidates for appointment shall be

published in the Gazette from time to time but such lists shall be deemed to have come into force

from the date shown in the advice letter of the Commission. The candidates advised for

appointment shall also be informed of such advice by the Commission.

15A. The Commission shall have the power to correct any clerical, typographical, arithmetical or

other mistakes in the ranked lists. Advice lists or short lists etc. or errors arising therein from any

accidental slip or omission at any time, either on its own motion or on the application of any of

the parties concerned.

16. When any examination is to be held to test the proficiency of classes of Government Servants

in the subjects prescribed for Departmental Examinations, the Commission shall:-

(i) Advice Government in regard to prescribing

(a) the conditions of admission to the examination;

(b) the syllabus of the Examination, and

(c) the minimum marks for a pass in the Examination;

(ii) make all arrangements for the conduct of the examination;

(iii) publish the results in the Gazette and in any other manner the Commission may deem fit.

17. (a) Applications for re-registration from candidates discharged from service for want of

vacancies from ‘common posts’ as contemplated in the proviso to Rule 7 in Part II of the Kerala

State and Subordinate Service Rules, 1958 should be accompanied by certificates of discharge in

the form prescribed by Government issued by the competent authority in the Department from

which they were discharged, certifying to their service. On receipt of such applications with

certificates of discharge, the names of such candidates will be re-registered by the Commission

and such candidates will have a preferential claim for appointment to the post, over fresh

recruits. Seniority among re-registered candidates shall be based on the date of earliest effective

advice.

(b) The Commission may refuse re-registration, if there is delay of over ninety days in applying

for re-registration from the date of relief and the candidate is unable to prove to the satisfaction

of the Commission that the delay was unavoidable and owing to circumstances beyond the

control of the candidate. The Commission shall not, under any circumstance condone a delay of

more than twelve months.

18. (i) The advice of a candidate made by the Commission for recruitment to any post in the

service who does not join duty in the post in pursuance of the order of appointment shall, unless

the Commission are satisfied that the order has not been sent to the candidate by registered post

with acknowledgment due, be cancelled and his name deleted from the ranked list.

(ii) Any candidate whose name has been included in a ranked list prepared by the Commission

may relinquish his claim for appointment in writing, giving his full address and signature attested

by an Officer not below the rank of a Tahsildar under his seal on or before the date of receipt of

requisition for advice against which he/she is to be advised. The Commission shall thereupon

remove his name from the ranked list and advise another candidate according to rules. The

candidate whose name has been so removed from the ranked list shall be informed of such

removal by the Commission.

19. The Commission may, if and when requested by the State Government, select candidates for

training for any course or for any profession or for any scholarship or stipend or for any other

purpose and in such selections the Commission shall consistent with the nature of the particular

selection follow as far as possible the procedure laid down in these rules.

Provided that the ranked lists prepared by the Commission in such selection shall cease to be in

force after one month from the date of commencement of the training course or three months

from the date of coming into force of the ranked list whichever is later.

20. In any case in which the Commission are consulted under Sub-Clause (c) of Clause (3) of

Article 320 of the Constitution of India or any disciplinary matter or on any memorial or petition

relating to such matter the records of the case shall be forwarded to the Commission and the

advice of the Commission shall form part of the records. A copy of the letter containing the

advice of the Commission or of the portion of the advice which relates to a particular officer or

officers shall, unless the order passed on the case is one of acquittal be communicated to the

Officer or Officers concerned along with a copy of the order of the authority empowered to pass

orders on the case.

21.The Commission may, at any time, call for any record, report or information which may in

their opinion be necessary to enable them to discharge their functions, from the Government or

from any Head of a Department or other authority subordinate to the State Government or any

local authority or other body corporate constituted by law or a public institution and such record,

report or information shall be furnished to the Commission without undue delay by the State

Government or authority concerned unless the Government certify that the same: -

(a) cannot be furnished without undue labour or

(b) should be withheld in the public interest.

22. Candidates who are found guilty of the following items of misconduct shall be liable for

disqualification for being considered for a particular post or department from applying to the

Commission either permanently or for any period or the invalidation of their answer scripts or

products in a written practical test or the intimation of criminal or other proceedings against them

or their removal or dismissal from office or the ordering of any other disciplinary action against

them if they have already been appointed, or any one or more of the above.

(i) Any attempt by or on behalf of candidates applying for selection by the Commission to

influence the Chairman or any Member of the Commission or the Experts or Examiners who

assist the Commission or to canvass support for their selection.

(ii) Any attempt to influence the staff of the office of the Commission to do any undue favour to

them or to divulge any information which is to be kept secret until it is officially released under

the Orders of the Commission.

(iii) Making of any false statement in the application Form or its Annexure or any document

produced in connection with a selection or suppression of any material fact relevant to the

selection from the Commission.

(iv) Production of any false or tampered document before the Commission or the tampering with

any document produced before the Commission in connection with a selection after their

production.

(v) Any attempt to prefer any false complaint before the Commission about a rival candidate in a

selection.

(vi) Making any false allegation against the Chairman or any other Member of the Commission

or any Expert or Examiner who assists the Commission or any member or Staff of the

Commission in connection with a selection.

(vii) Any improper behavior in connection with any interview or examination held by the

Commission.

(viii) Tampering with any answer book in an Examination conducted by the Commission or

writing anything in such answer book in any manner which in the opinion of the Commission

would lead to the identification of the candidate against the instructions contained in the answer

book.

(ix) Any other conduct which, in the opinion of the Commission is likely to affect the fair and

just selection of candidates by the Commission.

23. The Commission shall present to the Governor through the Chief Secretary to Government

by the 15th July of each year a report as to the work done by the Commission during the

preceding financial year as required by Article 323(2) of the Constitution of India.

24. All references made to the Commission shall be in the form of letter addressed to the

Secretary.

3.4.2 Welfare Measures of Khadi

The government of Kerala gives full support to the Khadi sector in extending welfare measures

to Khadi artisans. The state government has constituted separate board Viz, Kerala Khadi

Workers Welfare Fund Board which is unique in the country. The state government extends

financial support in the form of contribution to the fund. The welfare Fund Board has three

regional officers for its smooth functioning. Every artisan who has worked as a Khadi worker for

a period of 240 days is eligible for the membership to the fund. He/she has to contribute 12% of

their annual wage to the fund, and equal amounts (12%) by the Khadi institution and the

government. The following benefits are extended to the artisans from the Welfare Fund Board.

• Superannuation pension-minimum pension (10 year service Rs 300/-)

• Maximum pension (30 years service)-Rs 700/-

• Disability pension (minimum 3 years service) Rs-300/-

• Family pension –rate superannuation pension

• Medical benefits for one year up to Rs. 1000/-

• Funeral benefits Rs.750

• Assistance to marriage of woman artisan or daughters -4000/-

• Maternity benefits (only for 2 times)(2 year continuous service is necessary) Rs-750/-

Educational Benefits

• For children studying above SSLC up to Rs.500/- per year

• For engg/medicine/agriculture/veterinary up to Rs. 3000/- per year

• For children’s studying at VIIITHstd up to SSLC Rs.250

Incentives to Khadi Artisans

Khadi sector in Kerala at present employs 1200 artisans, mostly women below poverty line.

Since we have built an infrastructure in the form of work shed, go down and marketing outlets,

there is a lot of scope for raising the number of beneficiaries by another 20000, without

additional investment on infrastructures.

At the same time, having regard to the high rural wage level in the state, the artisans expect a

comparatively high wage in spinning and weaving too. Introduction of more weavers ensures

additional employment to 6 times their number in spinning. In the back ground it is necessary to

provide incentives to spinners and weavers, to enhance production and ensure reasonable income

to the artisans. Since this sector employs women more particularly unemployed house wives, the

expansion of work in this sector will help poverty alleviation in villages.

With a view to continue the spinners and weavers in the Khadi sector and attract more artisans to

this sector, the government is providing incentives to artisans based on their production. The

present rate of production incentives to Khadi artisans are given below

Spinners= 30 paisa per bank of spinning

Weavers= 90 paisa per bank consumed by the weaver

Insurance Scheme for Khadi Artisans

Presently the KVIC is running an insurance scheme titled “Khadi Kargar Janasree

BheemaYogana” for the welfare of Khadi artisans. As per this scheme Rs.20000/- is given for

natural death and Rs.50000/- is provided for permanent disability due to accident and Rs.25000/-

for partial disability. Educational benefit of Rs.1200/-per year is admissible from STD IX TO

XII. The premium amount of Rs.200 is met from the following sources.

• Government of India-Rs.100/-

• KVIC -Rs.25/-

• KVIB -Rs .25/-

• Artisans -Rs.12.50/-

Total employees

Table.4

Year Total Employees

2012 1909

2013 2021

3.5 Purchase Department

The purchase department plays a very important role in any organization because purchasing has

its effect on very vital factor concerning the manufacture, quality, cost, efficiency and prompt

delivery of goods to the consumers.

The firm usually purchases raw materials from Andhra Pradesh, Tamil Nadu and Karnataka. The

raw materials mainly include the raw cotton. The Government usually provides adequate funds

for purchasing the raw materials. The firm undertakes the purchases on tender basis.

The firm has got around 4 vehicles for carrying the raw materials to the warehouse situated at

Ettukudukka.

Objectives of Purchase Department

Generally, the purchasing department’s goals are similar to those of anyone who buys something:

get the best possible quality of all supplies, services and equipment at the lowest cost. Most

often, the purchasing department is that part of the procurement section that handles the supply

chain process. To ensure quality and to prevent unethical practices, purchasing is usually separate

from receiving and accounts payable.

Purchasing departments have changed over time. Historically, they issued purchase orders for all

supplies, services, equipment and raw materials, but to save costs they began to put in place

"master" agreements for repetitive orders, and they streamlined other routine tasks. This led to a

larger role for purchasing departments as strategic sourcing managers who are concerned with

purchasing large capital equipment, bidding processes and negotiating with suppliers.

3.5.1 Purchase Procedure in Payyannur Khadi• Receiving Purchase Requisition

• Inviting Quotations And Tender

• Selecting The Supplier

• Placing Purchase Order

• Receiving of Materials

• Inspection of Materials

• Checking the Invoice and Making

Total purchase in Payyannur Khadi Center2012- 2013 Table.5

Khadi 1,63,82,307

Poly 6,39,959

Silk 59,28,629

VIP 34,95,780

Yarn 17,77,938

Sliver 6,70,758

Cotton 1,66,43,340

CRA Cotton 2,42,15,666

Packing Material 1,92,612

Dying & processing charge 24,81,258

Dyes &chemichals 21,71,445

TOTAL 7,48,84,174

3.5 Major Problems in the Departments:

Marketing Department:

•The competition is high in the market

•Lack of promotional activities

•Products are not available in markets other than Khadi outlets

•Following the traditional line

Finance Department:

•Firm is not fully computerized

•Old accounting systems are still followed

•Lack of fund

•Lack of young workers

•Government Monitoring consumes time

HR Department:

•Welfare activities are not attractive

•Low wage offering for the employees

•Lack of fresh workers. Not inviting the fresher

•Lack of skilled laborer for automation

Production Department:

•Old machines still using

•Lack of update of technologies

•Use of manpower are more

•Time consuming production process

SWOT ANALYSIS

CHAPTER 4SWOT ANALYSIS

SWOT ANALYSIS

A scan of the internal and external environment is an important part of the strategic planning

process. Environmental factors internal to the firm usually can be classified as strength (S) or

weaknesses (W), and that external to the firm can be classified as opportunities (O) or threats

(T). Such an analysis of the strategic Environment is referred to as SWOT analysis.

The SWOT analysis provides information that is helpful in matching the firm’s resources and

capabilities to the competitive environment in which it operate. As such, it is instrumental in

strategy formulation and selection.

SWOT Analysis is a study of Strength, Weakness, Opportunity and Threat. The central purpose is

to identify the strategies that will create a firm’s specific business model that will best designs, fit

or match company’s resources and capabilities to the demands of the environment in which it

operates . Once they become aware of the threats and opportunities in the external environment

and the strength and weakness in the internal environment of the organization at comprehensive

analysis of these elements. This comprehensive analysis is known as SWOT Analysis. SWOT

Analysis is such a Systematic Study and identification of those aspects and strategy that best suit

the individual company’s position in a given situation. It should be based on logic and rational

thinking. Khadi and village industries are also their strength, weakness, opportunities and threats.

4.1Strength:

Every organization has certain strong points which are known as it’s strength. Khadi and village

industries are also have strong points.

1.Skilled Laborer.

The company has the service of persons having more than 20 to 27years of experience in this

field.

2.Adequate resources

3.Quality raw material

Good quality raw material available from central silver, Kuttur and other places

4.Steady Market.

There is a very good and steady market for the Khadi products.

5.Good maintenance system.

6.Flexibility

There is flexibility in production volumes and product designs.

7.Quickness.

There is quick decision making.

8.Efficient employer – employee relationship.

There is an efficient and healthy relationship between management and employees

4.2Weaknesses:

Weakness is the incapability, limitation and deficiency in resources such as technical, financial, manpower, skill, and brand image and distribution pattern.

1.Lack of artisans

The company lacks the service of adequate number of artisans. This creates difficulties in loading and unloading of materials.

2.Low wage. It creates dissatisfaction among workers and hence it reflects productivity.

3.The charkas and looms are very old it create delays in production and affect quality.

4.Lack of fund

The company lacks adequate funds further expansion.

5.Lacks of promotional activities

Khadi village industries do not provide better promotional activities.

6.Some other weakness include technological obsolescence, in efficient management and marketing inability.

7. No proper system for remittance of wastage

8.Lack of updated technology

9.Majority of the employees are female in production department

10.Lack adequate update of production procedure

11.Lack of proper organization structure like there is no inventory management which

is currently spread across purchase, production, marketing department

4.3 Opportunity:

Opportunities are entirely external to the organization and they are present in the environmental

situation in which the corporation functions .An opportunity is a major favorable advantage to a

company provide the same can be availed strategically. The external environment analysis may

reveal concern certain new opportunities for profit and growth. Such opportunities include.

1 .New market like shopping malls

 2. Growing demand of its products.

 3.Demand for readymade Khadi products of new designs and quality.

4.Judicious purchase of materials,

5.Out sourcing by large units.

6.Overseas market.

7.Expansion and Modernization of all units / high investment.

8. Demand for the product is high in the current scenario

4.4 Threats:

Threats are also external to the organization. Threats are danger signals and these signals should

be properly observed. For this the management should revise their strategies and tactics to meet

them. Top management should have the capacity to foresee the possible threats in the short term

and in the policies and prepare strategies. Threats can be effectively blocked by proper analysis

and replacing of the existing policies and by developing strategies suitable to meet the situation.

1. Price variation

As per prices of raw material changes in accordance of the season there is a chance of less demand of the product.

2. Govt. policies.

Sometimes affect the working of the industry.

3. Competition

Now in the current situation high competition existing in the market

It’s a major threat to Payyanur Khadi center

4. Increasing private players in the market

5. Potential employees in private companies of the same industry

FINDINGS, CONCLUSION AND SUGGESTION

CHAPTER-5

FINDINGS, CONCLUSION AND SUGGESTION

5.1 FINDINGS

• Highly service motive.

• The sale of Khadi products is in increasing trend.

• Proper time schedule followed

• Employees are punctual

• High priced products are mostly being sold and also they are not affordable for

the middle class people

• Products are sold only through their respective Soubhagyas and not given to

Other private agencies.

• There is formal dress code for the office staff.

• Raw materials for the production process is available within specified time

• Office buildings are not properly maintained

• One default that the lack of new fresh blood is less. Generally youth are do not

prefer Khadi jobs. They switch to other jobs

• Speedy governance is not possible due to the paper dependent administration

• The Khadi and village industries generally run on traditional lines

5.2 Conclusion

The study has offered an excellent opportunity to know in detail the functioning of “Kerala

Khadi and Village Industries Board, Payyanur Khadi center”.

Khadi having a great culture Gandhiji is the true founder of Khadi. At the time of freedom

struggle Gandhi encouraged the people to wear the Indian made dresses, from there the history of

Khadi began. Since then Khadi has become the legacy for Indians. Government is promoting

Khadi allover India. These are the advantages of Khadi and also the market for the Khadi

products is very huge. Having all these factors in favor unfortunately Khadi is not performing

well. It’s indicating the need of improvement in the areas of management. Khadi is the pride of

our nation, we have to protect that.

Now the existing condition of Payyannur Khadi is not too bad but they have to improve by

exploiting the strength and opportunity and by minimizing the weaker areas. They have to

improve in all level of production, marketing, technology, HR functions.

A huge market calling Khadi product especially foreign market, Payyannur Khadi has to grab the

opportunity. The present situation is that Khadi products are not available in the private market,

it’s only available in the Khadi outlets, and it should be changed, like this in all level Khadi need

innovation and speedy execution.

The various departments and its processes were studied in detail. All the facts of the industrial

working, including processes, policies, people and product were effectively studied.

5.3 Suggestions

• Firm should be fully computerized to avoid the risk involved in carrying the

files.

• Some sort of advertisement should be made so as to increase the demand of

product there by increasing the sales.

• The products of KHADI should be made available to everywhere in the

market and not only in Khadi Soubhagyas and other KHADI sales centre.

• The prices of Khadi products should be changed according to their demand

and supply.

• Lack of awareness about the Khadi products, so sufficient advertisement

is required

• Proper recruitments should conduct in time

• Necessary steps like painting, furnishing etc should be taken to maintain office

building.

• Now a day’s people like to be in modern trend, so there should make changes

in business from traditional lines to modern.

• By exporting the Khadi products the organisation can make huge profit.The world should

bother the importance and needs of Khadi products through exporting

• Organization structure needs to be modified to leverage the strength and opportunity of the

firm

BIBLIOGRAPHY

Books Referred

1.“BUSINESS ENVIRONMENT” by Abdul Assis Boroth&K.Venugopalan

2. Principles of Marketing -Philip Kotler

3. Principles of MarketinG -Francis Cherunilam

4. Prasanna Chandra, “Financial Management”, Tata MC Grew Hill Publishing

House- 2008, 7th edition, New Delhi.

5. Human Resource Management and Industrial Relations. (Himalaya publishing

house, New Delhi, 1999)-P. SUBBA RAO

Website

• www.kkvib.org

• http://www. HYPERLINK "http://www.khadiassociation.com/products.html"

HYPERLINK "http://www.khadiassociation.com/products.html" HYPERLINK

"http://www.khadiassociation.com/products.html"Khadi HYPERLINK

"http://www.khadiassociation.com/products.html" HYPERLINK

"http://www.khadiassociation.com/products.html" HYPERLINK

"http://www.khadiassociation.com/products.html"association.com/products.html

• http://www. HYPERLINK "http://www.khadiassociation.com/" HYPERLINK

"http://www.khadiassociation.com/" HYPERLINK "http://www.khadiassociation.com/"Khadi

HYPERLINK "http://www.khadiassociation.com/" HYPERLINK

"http://www.khadiassociation.com/" HYPERLINK

"http://www.khadiassociation.com/"association.com/

• www.payyanur.com/ HYPERLINK "http://www.payyanur.com/khadi.htm" HYPERLINK

"http://www.payyanur.com/khadi.htm" HYPERLINK

"http://www.payyanur.com/khadi.htm"Khadi HYPERLINK

"http://www.payyanur.com/khadi.htm" HYPERLINK "http://www.payyanur.com/khadi.htm"

HYPERLINK "http://www.payyanur.com/khadi.htm".htm

• ww.Khadinatural.com

• www.ibef.org/industry/textiles.aspx

ReportsAudit Report and Annual Report of Payyannur Khadi center