A

STUDY ON

“profitability of lssokanath wever”

Submitted in partial fulfillment of the requirements of the degree of

MASTER OF BUSINESS ADMINISTRATION

KANNUR UNIVERSITY

BY

SHARON THOMAS

UNDER THE GUIDANCE OF

Miss Navya

CHINTECH SCHOOL OF MANAGEMENT STUDIES

CHINMAYA INSTITUTE OF TECHNOLOGY

KANNUR

2010

DECLARATION

I am a student of Chinmaya Institute of Technology, Kannur, hereby declare that

this project report entitled “a study on profitability of lokanath wevers ” has

been prepared by us in the partial fulfillment of the requirements of the degree of Master

of Business Administration and it was done under the guidance of Ms. Anjali Anand,

Lecturer, Chinmaya Institute of Technology, Kannur University.

I also declare that this project report has not been submitted by us at any time

fully or partially to any other university or institute for the award of any degree.

SHARON THOMAS

Kannur

Date:

CONTENTS

Title Page

Certificate

Declaration

Acknowledgement

List of tables

List of charts

CHAPTER 1: INTRODUCTION AND DESIGN OF THE STUDY

1.1 – Introduction

1.2 - Statement of the Problem

1.3 - Objectives of the Study

1.4 - Sample Design

1.5 - Methodology and Data Collection

1.6 - Tools of Analysis

1.7 - Chapter Scheme

CHAPTER 2: LITERATURE SURVEY

CHAPTER 3: INDUSTRY PROFILE AND COMPANY PROFILE

CHAPTER 4: ANALYSIS AND INTERPRETATION OF DATA

CHAPTER 5: FINDINGS, SUGGESTIONS AND CONCLUSION

BIBLIOGRAPHY

ANNEXURE

CHAPTER -1 INTRODUCTION AND DESIGN OF THE STUDY

I ntroduction

The term financial analysis is known as

analysis and interpretation of financial statement ,it refers to the process of

determining financial strength and weakness of the firmby establishing strategic

relationship between the itemssof the balance sheet and the profit and loss

account and other operative data .the purpose of the financial analysis is to

diognose the information contained in financial statement so as to judge the

profitability and financial soundness of the firm

Lokanath weavers industrial co-operative society

Ltd,is a major handloom manufacuring and exporters in kannur . The study is an

effort to understand the financial perfomance of the Lokanath weavers industrial

co-operative society

RESEARCH DESIGN

By using various accounting relationship and

ststisticsl analysis the methodology adopted was both discriptive and analytical in nature.

OBJECTIVES OF THE STUDY

s

Kerala, the greenish land lies between the western ghat and Arabian sea, about 15000

square miles with varying scenic beauty. Kerala is known as the epitome of India.

Historically kerala has long been a land of racia admixture and co-existence.

The mile stone in Kerala's history is that by first Christian church ,first Muslim masque and

first synagogue were established in Kerala. A number of historically important Hindu

temples can be seen in kerala

Tolerance and cosmopolitan out look are the characteristics of a "Keralite". This may be

attributed to the religious and trade contact which existed for centuries with outside India.

Handcrafted handloom weaving, Ivory works, weaving of coir are well known heritage of

kerala.

Kerala handloom industry carries a vital role in states economy as well as in the field of

employment.

A very large number of looms are located in rural areas. The rhythm of

handloom can be heared in almost every village in kerala. There are men and

women weavers for whom weaving is a way of life. In early days majority of

handloom weavers followed the hereditary line. The main communities engaged

in weaving are saliyas and devangas. With the available information it is clear

that the saliyas and devangas migrated from the near by princely states.

Earlier they were producing cloth for their own consumption and for the need of

their village. Increase in production and improvement in transport facilities

removed the hindrance of time and eased the exchange of commodities. The

skill of weaving has been passed from parents to children.

During 15th century British, French and Portuguese people visited kerala. They

were attracted by the things like spices, ivory and beauty of handloom fabrics.

They began to purchase large quantities and exported to their countries.

Germany has established a mission called 'Basal mission' in 1829.This mission

paved the way of changing from home production to factory system. Apart from

this, French people started to give training in weaving. They imported versatile

loom and introduced principle designs from the hooks.

After the British captured India they took up and nourished handloom industries

for their purposes. At the end of the 18th century the monopoly came to an end.

Since 19 th century with the advent of industrial revolution, the English people

gave up all. They started mechanical production in their land. During this period

of foreigners the weavers of Kerala learned all techniques and they paralleled

the way for the production of furnishing fabrics according to new style of

demand.

During the dawn of 20th century, the Sree Narayana movement influenced

kerala society by and large prompting the caste based culture to change

towards secular and modern industrious culture so that many people from

traditional Thiyya/Ezhava community had taken up their employment in

Handloom Industry to do away with the toddy tapping to respond with the

advice of Sree Narayana Guru. These changes also has its own mark in making

the present shape of Kerala Handloom Industry.

It has resulted in the production of various types of artistic handloom goods in

kerala.

The 'kerala kasavu sarees' are praised by the women all over India for their

fineness of count and natural colours, texture and gold borders Kerala is also

known for its unbleached cotton handloom crepe popularly known as 'kora' cloth

this has entered in the foreign market and occupied a proud place in the

garment industry.

The secret of furnishing fabrics from malabar is the excellent structure and

texture of the cloth, unique colour combination, wide width (98"-120") and craft

man ship. When we look back to the history of kerala it can be seen that in 1498

Vascodi Gama, the Portuguese navigator visited Calicut in Malabar. So it is well

known that 15 th century handloom cloth of excellent qualities were exported to

Asian and European countries.

Balaramapuram, in Thiruvanathapuram district is the most historically important

place for handloom fabrics. The weavers belong to Saliyas were migrated from

Nagar coil and Thirunalveli in Thamil Nadu during the time of Balarama Varma

before 250 years. Here they produced super fine 'Mundum Neriyathu; for the

need of royal family. Still they are in existence and carry important part of the

total production. The technique of producing the superfine fabric spreaded from

them to the local weavers in Balaramapuram and the surrounding places.

Initially they were producing 'Mundu' for men with 0.4cm of width of 'kara'

(cross border) with black garn. Before 100 years the jeri from Surat takes to

Balaramapuram and 'Kasavu Sarees' production was started.

Koothampalli in Thrissur district is also well known for handloom fabric. Here

Devangas immigrated from Karnataka are engaged in weaving. The 'Kasavu

Sarees' which are being produced here is mostly with halffine jeri.The middle

class people would like to purchase this sarees because of its cheapness. The

price of a saree can be reduced from Rs.5000 to 1000 by using half fine jeri

instead of pure jeri.

Chendamangalam, in the Ernakulam district is also an important handloom

centre in Kerala. Here they have been producing the double dhoti and 'Mundu'

and 'Neriyathu'.The distinction of these fabrics is in its structure in the plain

structure, they have producing a special effect in weft direction.

Area wise Analysis of Handloom in Kerala

Kerala has 14 districts from Thiruvanathapuram to Kasargod. The handloom

industry is spreaded allover the state. But the handloom industry is

concentrated in certain places. The southern kerala is famous for its superfine

products, like sarees, dhothies and 'Set mundu' etc. The middle kerala also

engaged with such products .But while going to northern side called malabar

the main production changed to coarser varieties like furnishing items bed

spreads, towels etc. The common products in kerala are 'Thorthu' (Bathing

towel) and Lungies. Almost 2 lakhs of weavers are earning their livelihood from

the handloom 75% of them are in the co-operative line. Almost 5 lakhs families

are depending upon handloom industry.

A district wise analysis gives us a clear cut idea about the places where

handlooms are concentrated and the places which are important for traditional

varieties.

With 10271 registered weavers with their looms. In this district almost all

varieties produced in Kerala are produced in a small scale. In olden days the

Kollam (Quilon) was an important port in South India. So the effect of exporting

items are effected the weavers in kollam district Lungies, furnishing items,

earezhathorthu, sarees, dhothies are the main products. Terry towels, Jacquard

durries are also produced.

Kollam, Karunagappally, Chathannur are the main places related to handloom in

the district. The products from this place are mainly for domestic market.

Therefore colours, fashions etc. of these products suit the domestic market.

3.Pathanamthitta

There are 7 co-op societies and 165 registered looms are here. With these 281

weavers are earning their livelihood. In this district the main products are

lungies and dhothies.

4.Alappuzha(Alappey)

Alappuzha is very famous for its coir products. Coir weaving also done with the

hands only. But it is considered as another wing.

The main products in this centres are mainly dhotis, sarees, lungies,

earezhathorthu etc. There are 25 co-op societies with looms and 2309 weavers

in this district.

5.Kottayam

In kottayam district the main products are earezhathorthu, panimundu and

lungies. They are also producing bed sheets and sarees. There are 16 societies

with loom and 1853 weavers are here. Kidangoor, Karingannoor are major

centres.

6.Idukki

In this district there are 11 societies and 414 weavers with their looms. The

main products are sarees, lungies etc.

7.Ernakulam

'Chennamangalam saree' is famous in kerala. This fine grey sarees are the

product of Ernakulam district. The other main products are superfine double

dhothies, synthetic and silk sarees, matching set etc. In Paravoor 120 s fine

double dhothies are produced. Paravoor is situated in coastal Ernakulam only

the above statal paravoor is situated.

In east Ernakulam ,earzha thorthu and cheaper variety bed sheets are

produced. There are 30 societies and 8494 weavers with their looms.

8.Thrissur

The cultural capital of kerala has an important role in the tradition of kerala.

Here a traditional variety named 'Koothampally saree' is produced.

koothampally is a place situated in Thrissur. The other productions are set

mundu, woven with half fine jari. Dhothies, lungies are also produced in this

district .There are 30 societies in Thrissur and 6052 weavers.

9.Palghat

In this district its handloom weaving is very popular Chittur, Pudunagaram,

Kollengode, Peruvemba,Karimpuzha are some of the handloom concentrated

place situated in the district.

Here the main products are sarees, dhotis, lungies etc. Here silk sarees

production also started recently.

There are 45 societies and 11236 weavers depending on the handloom weaves

with their looms.

10.Malapuram

A number of Muslim weavers are here in this district. The main places are Tiroor,

Tanoor etc. The main products are furnishing items which influenced from

calicut and saree lungies. There are 13 societies and 2774 weavers.

11.Calicut or Kozhikode

The districts from Malapuram to Kazargod known as Malabar. The famous

"Malabar loom" came from this place only. The other famous of this place is ,in

olden days famous "Calico cloth" came from calicut only.

In olden days foreigners established some companies. Some of them remaining

now also. 'Common Wealth Trust' which is situated in Calicut is one such

company.

The main products are mainly meant for export. Furnishing ,Jacquard products,

Bedsheets, Table mats, Coarser varieties etc. The products are mainly coming

from Malabar loom.

The products from Kozhikode have an excellent value in domestic market also.

The main centres are kozhikode, Quilandi, Vatakara, Chombal, Maniyur etc.

There are 41 societies (Most of them are industrial societies) are here.

12.Wynad

There is not that much important in this high range. There are only 4 societies in

this district and 136 weavers. The products will be a part of Calicut and

Cannanore.

13.Cannanore or Kannur

Cannanore is called as 'the Manchester of Kerala'. The famous Cannanore sports

shirting, varieties like Crepe are the donation of this district. The weavers are

mainly working in industrial societies.

For export of handloom products Kerala mainly depending upon the products

from Cannanore. The main products are shirting, Made-ups, jackquard,

Furnishing,Turkish towels, Sateen sheets Crepe such export oriented, and

Lungies Earezha thorthu etc. for domestic purpose. The products are coarser

varieties Cannanore Mundu is a popular variety.

The main centres are Cannanore, Azhicode, Chirakkal, Kanhirode, Panoor,

Kuthuparambu, Kalyassery.

There are 73 societies established in this district and with about 50 exporters in

private sector together have,13667 weavers working open that.

14.Kasargod

Kasargod is the north most district in Kerala. Here sarees are produced, and

export varieties also produced here Kasargod, Mancheswaram are main

centres.11 societies are here nad 3401 weavers working in these societies.

Kasargod sarees are very famous in Kerala. Now-a-days there is a very good

demand for the silk sarees woven with different colour pattern and ornamated

with zaris.