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Organizational Study at Duroflex Pvt. Ltd.
Marthoma College of Management and Technology, Perumbavoor Page No. 1
CHAPTER - I
INTRODUCTION
Organizational Study at Duroflex Pvt. Ltd.
Marthoma College of Management and Technology, Perumbavoor Page No. 2
1. Introduction
Organization is the integration of various departments and its functions.
Organization study deals with critical evolution and analysis of all the
aspects of a part icular firm. Duroflex Pvt. Ltd. is one of the leading
organizations in India. The Company has around 50 years’ experience in
the field of coir product manufacturing, particularly i n the
manufacturing of rubberized coir products. It’s an ISO 9000 -2001
company, incorporated in the year 1963. Duroflex coir is manufactured
using eco-friendly materials that are coconut fibre and 100% natural
rubber latex. The main product of the company is rubberized coir
mattresses. It is the largest sell ing mattress in south India and Duroflex
Pvt. Ltd. has been a member of international Sleep Product Association
The organizational study conducted in Duroflex Pvt. Ltd. , Alappuzha;
provide details regarding the various departments of the firm and also
helps to familiarize with its different functions. The firm comprises of
mainly 6 departments; includes Finance, Marketing, Production and
Human Resource, Purchase and Quality Control Department.
The details regarding the recruitment and the selection process which is
carried out by the human resource department is also flourished in the
report. The particular study gives a clear idea about the functions,
practices and the delegation of authority of Duroflex Pvt. Ltd. and also
the major issues facing by the company and by critically analysing the
issues, forming some suggestions are also part of reporting curriculum
The SWOT analysis, Suggestion and the conclusions which are given in
the report also provide us with the details regarding the various ways for
the betterment of the firm. The financial details of the firm and its
interpretations, flourished in the appendix of the report also help us to
know about the financial position of the firm.
Organizational Study at Duroflex Pvt. Ltd.
Marthoma College of Management and Technology, Perumbavoor Page No. 3
1.1 Need for the Study
Combining the theoretical background, we have gained so far and the
practical study of the organization makes it possible to have a clear cut
understanding and a broader perspective of an organization and its
functional and the operational aspects. The organization study is
conducted to have practical knowledge about the various functions and
activities of an organization. The study done at Duroflex Pvt. Ltd. ,
Alappuzha helped me to attain the knowledge of functioning of an
organization. The study helped to know the activities of various
departments in the organization. The importance of each activity in an
organization is analyzed.
Various functions and operations of the company.
Production process performed by the company.
Financial and the accounting patterns of the company.
Human resource management of the company.
How a company is working successfully in such a competitive
scenario.
This Organization study also helps to have a clear understanding on
various practical applications of the theories wh ich we learned in the
text books.
1.2 Scope of the Study
This study was conducted at Duroflex Pvt. Ltd. , Alappuzha. The
duration of the study was one month. The study covered various
departments of Duroflex Pvt. Ltd.
Organizational Study at Duroflex Pvt. Ltd.
Marthoma College of Management and Technology, Perumbavoor Page No. 4
The departments are:
Purchase Department
Production Department
Marketing Department
Finance department
Human Resource Department
Quality Control
1.3 Objectives Of The Study
To gain complete knowledge about the company ‘Duroflex ' Private
Limited, Alappuzha.
To analyse the organization chart and understand the functions of
the managers officers and Supervisors in different departments.
To identify the key function of each department and try to
understand how it is carried out.
To interact with personal and customers (bo th external & Internal)
of the organization.
To identify the strength and weakness of the organization.
To have a clear understanding about the various department of the
organization.
1.4 Research Methodology
Organization Study is a method to understand the various details about
an organization; it is a systematic method of collecting data about the
organization, understanding the collected data to learn more about the
organization and to present it in understandable manner. It is a type of
research. Research is an investigation to discover facts. Term research
Organizational Study at Duroflex Pvt. Ltd.
Marthoma College of Management and Technology, Perumbavoor Page No. 5
refers to systematic methods consisting of collecting the facts or data
analyzing the facts and reaching certain conclusion.
1.5.1 Research Design
For the purpose of study both the primary data and secondary data are
collected.
Primary Data Collection
Data that has been collected from first -hand- experience is known as
primary data. Primary data has not been published yet and is more
reliable, authentic and objective. Primary data has not been changed or
altered by human beings: therefore its validity is greater than secondary
data.
Sources of Data Collection:
Sources for primary data are limited and at times it becomes difficult to
obtain data from primary source because of either scarcityof population
or lack of cooperation. Regardless of any difficulty one call face in
collecting primary data: it is the most authentic and reliable. Some
sources are:
• Interview: Interview is a face-to-face conversation with the
respondent.
In interview the main problem arises when the respondent deliberately
hides information otherwise it is an in depth source of information. The
interviewer can not only record the statements the interviewee speaks
but he can observe the body language, expressions and other reactions to
the questions too. This enables the interviewer to draw conclusions
easily.
• Observations: Observation can be done while lett ing the observing
person know that he is being observed or without let ting him know.
Observations can also be made in natural settings as well as in
art ificially created environment.
Organizational Study at Duroflex Pvt. Ltd.
Marthoma College of Management and Technology, Perumbavoor Page No. 6
Secondary Data Collection
Data collected from a source that has already been published in any form
is called as secondary data. The review of literature in nay research is
based on secondary data. Mostly from books, journals and periodicals.
Sources of Secondary Data:
Secondary data is often readily available. After the expense of
electronic media and internet the availabili ty of secondary data has
become much easier. Some sources are:
Published Printed Sources: There are varieties of published printed
sources. Their credibility depends on many factors. For example, on the
writer, publishing company and time and date when published. New
sources are preferred and old sources should be avoided as new
technology and researches bring new facts into light.
Books: Books are available today on any topic that you want to
research. The uses of books start before even you have selected the
topic. After selection of topics books provide insight on how much
work has already been done on the same topic and you can prepare
your literature review. Books are secondary source but most
authentic one in secondary sources .
Journals /periodicals: Journals and periodicals are becoming more
important as far as data collection is concerned. The reason is that
Journals provide up-to-date information which at times books cannot
and secondly, journals can give information on the very specific
topic on which you are researching rather talking about more general
topics.
Magazines/Newspapers: Magazines are also effective but not very
reliable. Newspapers on the other hand are more reliable and in some
cases the information can only be obtained from newspapers as in the
case of some political studies.
Published Electronic Sources: As internet is becoming more advance,
last and reachable to the masses; it has been seen that much information
Organizational Study at Duroflex Pvt. Ltd.
Marthoma College of Management and Technology, Perumbavoor Page No. 7
that is not available in printed form is available on internet, in the past
the credibility of internet was questionable but today it is not. The
reason is that in the past journals and books were seldom published on
Internet but today almost every journal and book is available online.
Some are free and for o thers you have to pay the price.
E-journals: e-journals are more commonly available than printed
journals. Latest journals are difficult to retrieve without subscription
but if your university has an e -library you can view any journal, print
it and those that are not available you can make an order for them.
General Websites: Generally websites do not contain very reliable
information so their content should be checked for the reliabili ty
before quoting from them.
Weblogs: Weblogs are also becoming common. They are actually
diaries written by different people. These diaries are as reliable to
use as personal written diaries.
Unpublished Personal Records : Some unpublished data may also be
useful in some cases.
Diaries: Diaries are personal records and are rarely available but if
you are conducting a descriptive r esearch then they might be very
useful. TheAnne Frank’s diary is the most famous example of this.
That diary contained the most accurate records of Nazi wars.
Letters: Letters like diaries are also a rich source but. Should be
checked for their reliabili ty before using them.
Government Records: Government records are very important for
Marketing, management, humanities and social science research.
Census Data/population statistics:
Health records
Educational institutes records
Public Sector Records:
NGO's survey data
Other private companies records
Organizational Study at Duroflex Pvt. Ltd.
Marthoma College of Management and Technology, Perumbavoor Page No. 8
1.5.2 Method of Data Collection;
The major source of data includes.
Primary Data
Secondary Data
Primary Data
Primary data are those which are collected for the first time and this
happen to be original in character. For this study, Primary data involves
interviews with company executives, employees, customers.
Observations: Observation can be done while let ting t he observing
person know that he is being observed or without let ting him know.
Observations can also be made in natural settings as well as in
art ificially created environment.
Secondary Data
Secondary data involves the existing information available for the study
it comprises of:
Details were obtained from company files, records and documents.
Various published book and journals.
1.5 Limitations of the Study
The major limitations of the study include: -
As the company being private firm, researcher is unable t o obtain
certain needed information.
The researcher is unable to gather at the technical details of the
production process.
Unable to gather information directly from the department heads.
The time period for the study is very limited.
Organizational Study at Duroflex Pvt. Ltd.
Marthoma College of Management and Technology, Perumbavoor Page No. 9
CHAPTER - II
GENERAL INFORMATION
Organizational Study at Duroflex Pvt. Ltd.
Marthoma College of Management and Technology, Perumbavoor Page No. 10
2.1 Industry Profile
2.1.1 Indian Mattresses Industry
Mattress is defined as “products providing a surface to sleep or rest
upon that are fit for use by human beings for a long period of t ime,
consisting of a strong cloth cover filled with materials and that can be
placed on an existing support bed structure”
A mattress is a manufactured product or improvised arrangement to
sleep or lie on, consisting of resilient materials and sometimes covered
with an outer fabric or ticking. It may consist of a quil ted or similarly
fastened case, usually of heavy cloth, that contains hair, straw, cotton,
foam rubber, or a framework of metal springs. The word mattress is
derived from Arabic words meaning “to throw” and “place where
something is thrown” or “mat, cushion”. Historically, mattresses have
been filled with variety of natural materials, including straw and
feathers. Modem mattresses usually contain either an inner spring core
or materials such as latex, visco -elastic or other polyurethane? Type
foams. Mattress may also be filled with air or water or variety of natural
fibers, such as in futons. Most mattresses have a thickness from six to
eighteen inches
2.1.2 Mattress Manufacturing in India
The Indian mattress industry is nearly 50 years old. The mattress
industry in the country is a Rs5,000 crore industry of which only
Rs.1,500 crore worth mattresses are from the organized sector. The rest
of the business volume is coming from unorganized sector. Kerala, the
land of coir and latex, there were over 100 players in the industry. The
1990 also saw a change in the socio economic scene in the country.
Rapid economic growth, increase in number of working women,
changing lifestyle helped the mattress industry to develo p. Demand
elasticity and price sensitivity are the prominent characteristics of
Organizational Study at Duroflex Pvt. Ltd.
Marthoma College of Management and Technology, Perumbavoor Page No. 11
mattress industry in India. Nothing that people spend one -third of their
lives in bed, Mattress Company are using research on sleep, sleep
deprivation, and consumer attitudes t o incorporate mattress in to the
refuge and sanctuary that consumer’s bedrooms have become. Now latest
technology to manufacture quality mattresses that combine coir for body
support and foam for maximum comfort are used.
After the independence of India th ere was a boom in the mattresses
industry. From 1950’s onwards, in order to the upliftment of the small
scale industries, government has provide3d subsides and grand for the
different units. Among which coir industry was one of among them.
From 1960’s onwards many mattresses manufacturing firms have
originated in the Indian industry. Many firms have changed or
registered into companies according to the Company’s Act 1956. With
the effect of mattresses industry, small scale industry like coir, strings,
cloths, manufacturing industry has also become very active. Now in
India there are more than 600 companies, who are manufacturing
mattresses. Among which:
Kurlon
Sunidra
Rubco
Sleep Well
Century Mattress
Duroflex
These are the leading companies in the Indian market.
India has attained a global achievement in the mattresses industry.
Because of globalization, Indian mattresses industry has extended. And
large quality of products is exporting on worldwide Indian coir
mattresses have a high demand in the global industry. The main
exporting factors are coir, rubber and latex. Mattresses industry is now
growing very fast, with the modern and technological advancement, coir
and mattresses industry occupies a major position in the world market.
Organizational Study at Duroflex Pvt. Ltd.
Marthoma College of Management and Technology, Perumbavoor Page No. 12
Coir and mattresses industry not only includes manufacturing beds, but
also includes in the manufacturing of pil lows.
2.1.3 History of Coir Industry
Global Coir Trade Currently, the global annual production of coir fiber
is about 3, 50,000 metrics tons yet, even in the world’ stop two
producer’s, India and Sri Lanka, which account for about 90%of global
coir. Traditional uses for coir fiber include rope and twine, brooms, and
bushes, door mats, rugs and mattresses and other upholstery, often in the
form of rubberized coir pads. In 1980’s and 1990, western consumers
omitted to synthetic foams and fibers. S ince 1990, domestic demand for
coir pith as a peat moss substitute in horticulture has further pushed up
global production and prices in town, other coconut growing countries,
including Philippines, Thailand and Vietnam are now expanding for
production and export of coir fiber.
Historically, Sri Lanka had been the world’s larger exporter of various
fiber grades where as India exports largely value added products –yarn,
mats and rugs. Global trade volume for coir fiber, value added products
–yarn mats rugs and coir path now stands at about $140 million per year
with India, Sri Lanka respectively accounting for about $70 and 60
million that amount. They give work to 5,00,000+ regional employers
particularly in rural southern India and coastal Sri Lanka, ma ny of
them are women working part -time .The challenge for industry is to
sustainably expand markets for these versatile renewable resources
while maintaining its role as employer for the rural poor. This may
require producers to restructure form impro ve product consistency and
in particular develop novel applications. Jointly with their customers in
importing countries. Business, public agencies and the research insti tute
are now addressing this challenge in multilateral products in world
wide.
Organizational Study at Duroflex Pvt. Ltd.
Marthoma College of Management and Technology, Perumbavoor Page No. 13
2.1.4 Rubberized and Coir Industries
Mattresses industries are rubberized industries which are mainly deals
with converting latex into rubber sheet, which are further used for
making tyres, rails, bands etc. graded and quality latex are further
converted into output which are mattresses pillows etc.
Coir and fiber industries are other main raw materials in the mattresses
industries. A majority of the population in Kerala are the workers in
leyth into coir. Coconut fiber obtained as curle3d or twisted ropes is
cured in a hot chamber, which gives the fiber the natural curl and
enhanced bounce. The curled ropes are then opened using customized
machines to give i t a natural spring structure.
2.1.5 History of Mattresses
Neolithic Period: The mattress and bed are invented. The first
mattress probably consists of a pile of leaves, grass or possibly
straw with animal skins over it .
3600 B.C: Beds made of goatskins filled with water are used in
Persia
200 B.C: Mattresses in Ancient Rome consist of bags of cloth
stuffed with reeds, hay or wool: the wealthy use feather stuffing.
15th Century: During the Renaissance, mattresses are made of pea
shucks, straw or sometimes feathers, stuffed in to coarse ticks, and
covered with velvet or silks.
Early 18th Century: Mattress Eire stuffed with cotton or wool
Mid-18th Century : Mattress covers begin to be made of quality
linen or cotton
1930s: Inner spring mattresses and upholstered foundations become
widely used, and artificial fillers become common.
1950s: Foam rubber mattresses and pillows are available for
purchase.
Organizational Study at Duroflex Pvt. Ltd.
Marthoma College of Management and Technology, Perumbavoor Page No. 14
2.1.6 General Composition of Mattress
In general a mattress consists of the following parts:
The Core: the core provides for the support of the mattress. The
main materials which are being used as core are steel sp rings,
polyether foam and latex foam. According to mattress test horse
hair and coconut fiber are also used as core materials, e.g. , for baby
mattresses
The Shell/ Padding: The shell or padding consists of a layer around
the core. The purpose of this shell is to equalize the pressure on the
human body. All mattresses with a spring interior and some of the
mattresses with other core materials contain a shell . Often mattress
shells are composite structures. The materials mainly used are:
Polyether foam (polyurethane or PUR foam)
Latex foam
Horse hair and camel hair (both sometimes rubberized)
Coconut fibers (sometimes rubberized)
Polyester(PET or Poly- ethylene-terephthalate)
Cotton
Wool
Linen
Felt
Jute
Sisal
The production method of the shell depends of course on the material
used. In general the materials used are glues and/or sewed to each other
and on the core. Also staples are being used to fix the materials
together.
Tick/Ticking: The outer cover of the mattress is called the tick or
ticking. It provides a comfortable top layer.
Organizational Study at Duroflex Pvt. Ltd.
Marthoma College of Management and Technology, Perumbavoor Page No. 15
The main woven materials used for the t ick of mattresses are:
Cotton
Polyester : (PET or Poly- ethylene-terephthalate)
Silk
Polypropylene
Nylon
Wool
Viscose
According to a tick manufacturer, ticks based are mainly used in th e
Southern European countries, whereas in the Northern European
countries cotton based t icks are preferred. The tick can be fixed to the
mattress by means of stitching or by tapes running through the mattress.
Sometimes the t ick is not fixed, but can be re moved from the mattress
by the customer.
Classification of Coir Industry
(a) Global Coir Industry .
Currently, the global annual production of the coir fiber is about
350,000 metric tons (MT). Yet, even in the world’s top two producers,
India and Sri Lanka, which account for about 90% of global coir fiber
production, combined this renewable resource is underutilized; local
coir mills process only a fraction of the available husks, which accrue
more or less round as a waste during coconut processing.
Traditional uses for the resilient and durable coir fiber include rope and
twine, brooms and brushes, door mats, rugs, mattresses and other
upholstery, often in the form of rubberized coir pads. In the 1980s and
90s, global exports of coir fiber fell by almost half , as Western
consumers shifted to synthetic foam and fibers. Then, since 1990,
rapidly growing domestic demand in India more than doubled global
production benefiting exclusively the Indian coir industry. Finally, since
‘2001, a rising Chinese demand for coir, an expanding market for coir
based erosion control products, and the spread of coir pith as a peat
moss substitute in horticulture has further pushed up global production
Organizational Study at Duroflex Pvt. Ltd.
Marthoma College of Management and Technology, Perumbavoor Page No. 16
and prices. In turn, other coconut growing countries, including
Philippines, Thailand and Vietnam are now expanding their production
and export of coir fiber. These changes are also reflected in the
international trade in coir.
While in 1990 about 80% of global production was exported, growth of
the Indian domestic market dropped that rate to below 40%. Global trade
volume for coir fiber, value added products -yam, mats, rugs-and coir
path now stands at about $140 million per year with India and Sri Lanka
respectively accounting for about $70 and $60 million of that amount.
(b) Coir Industry in India
The coir industry in India originated about one century ago. The word
coir comes from the Malayalam word ‘Kayar’ meaning ropes made from
coconut husk fiber- a major cash crop in the agricultural sector. Indian
coir industry is an important cottage industry contributing significantly
to the economy of the major coconut growing States and Union
Territories.
Coconut husk is an important agricultural resource, which provides
livelihood to a large number of workers in the rural areas of the countr y.
About 5.5 lakhs persons get employment, mostly part t ime, in this
industry. The exports from this industry are around Rs. 70 crores. The
Eighth Plan programs for coir industry aimed at increased uti lization of
coconut husks for production of coir fiber, growth of the domestic
market.
India accounts for more than two-thirds of the world production of coir
and coir products. Kerala is the home of India coir industry, particularly
white fiber, accounting for 61 per cent of coconut production and over
85 percent of coir products. Although India has a long coastline dotted
with coconut palms, growth of coir industry in other coastal States has
been insignificant.
The white fiber sector which is largely located in Kerala refers to the
coir fiber extracted manually from fettered coconut husks by natural
enzyme action. The fiber so produced is golden yellow color. The
Organizational Study at Duroflex Pvt. Ltd.
Marthoma College of Management and Technology, Perumbavoor Page No. 17
product of white fiber is Coir Yam, Ropes, Mats and Matting for export
and domestic market. The brown fiber is produced by mechanical
extraction form nature coconut husk. The product of this fiber includes
rubberized coir, curled coir, lower grade yam, etc.
Not more than 50 percent of the husks are utilized in the coir industry,
the remaining being used as fuel in rural areas. Production in the
cooperative fold is not more than 20 to 25 percent. The development
programs so far undertaken aimed at revitalization of coir cooperatives,
improvement in quality and products diversification. Efforts were also
made for exploring wider export markets for coir a nd coir products.
Judged from the increase in production and employment, the progress
has been rather slow and exports in physical terms have remained meter
or lets static.
Indian coir industry is an important cottage industry contributing
significantly to the economy of the major coconut growing states and
union territories, i .e. . , Kerala, Tamil Nadu, Andhra Pradesh, Karnataka,
Maharashtra. Goa. Orissa, Assam, Andaman & Nicobar etc. About 5.5
lakh persons get employment, mostly part time, in this industry. The
exports from this industry are around Rs. 70 crores. Coconut husk is the
basic raw material for coir products. Hence there is wide scope for
growth of coir industry.
During the seventh plan period, encouragement has been given for
expansion of home market through publicity and advertisement, product
diversification, adoption of new technology, research and development,
training for artisans, including women and social welfare measure for
coir workers.
The eighth plan programs for coir industry aimed at increased utilization
of coconut husk for production of coir fiber, growth of the domestic
market, strengthening of research and development to find out new uses
of coir fiber especially the areas of geo -fiber, fiber retardant, cement
and gypsum polymer development, acquiring of new technology like
Organizational Study at Duroflex Pvt. Ltd.
Marthoma College of Management and Technology, Perumbavoor Page No. 18
PVC - tufted coir products, encouragement to cooperative movement and
providing social welfare and medical
Facilities to coir workers.
(c) Coir Industry in Kerala
The name of Kerala (Kerala in Malayalam) is deri ved from the name of
this tree (Kera in Malayalam means Coconut and Alms means Land,
Kerala means Land of Coconut). Everything from Kerala’s culture to
dishes is evolved around the coconut tree.
India accounts for more than two-thirds of the world production of coir
and coir products. Kerala is the home of India Coir Industry,
particularly white fiber, accounting for 61% of account productio n and
over 85% of coir products . Although India had long cost line with
coconut palms, growth of coir industry in othe r coastal station has been
signified.
Not more than 50% of the coconut hunks is utilized in the coir industry
the remaining being used as fuel in rural areas. Production in the co -
operative fold is not more than 20 to 25 %. The development
programmes so far undertaken aimed at revitalization of coir co -
operation, improvement in quality and products. Efforts were also made
for exploring wider export market for coir products. Judged from the
increase in production and employment, the progress has been rather
slow and exports in physical terms have remained more as let static.
Indian coir industry is an important cottage industry contributing
significantly to the economics of the major coconut growing stated and
union territories, ie. Kerala, Tamil Nadu, Go a, Orissa Assam
Lakshadweep etc. About 5.5Lakhs persons gets employment, mostly part
time in this industry.
During the seventh plan period, encouragement has been given for
expansion of home market through publicity and advertisement, product
diversification adoption of new technology, research and development,
Organizational Study at Duroflex Pvt. Ltd.
Marthoma College of Management and Technology, Perumbavoor Page No. 19
training for citizens, including women and social welfare measures for
coir workers most of whom are SC/ST and women.
The eight plan programmes for coir industry aimed at increased
utilization of coconut husk for production coir fiber growth of the
domestic market. Strengthening of research and development of find out
new uses of coir fiber especially in the areas of geo -fiber, fiber
retardant, cement and gypsum polymer development, acquiring of n ew
technology like pue-tufted coir products, encouragement to co -operative
movement and providing social welfare, civic amenities and medical
facili ties to coir workers. Emphasis would be laid on mechanization
phased manner without affecting employment to make India coir
products competitive in the export market. Brown coir fiber production
would be encouraged by providing seed capital assistance.
Modernization of coir has been envisaged by providing intention for
installation equipment’s to make coir industry more competitive in the
export market.
Special training programmes have been formulated for women citizens.
Improved modern treadle rats would be provide to trained women
citizens to increase employment and earnings. Medical facil ities, crech
for children of coir workers, model coir village for SC/ST coir workers
and social welfare schemes would be implemented during the eighth
plan period
The coir industry is one of the most ancient traditional industries in
Kerala. The establishment of the first coi r weaving factory at Alappuzha
in 1854 by Mr. James Darrah marked the beginning of modem coir
industry in India. As the products enjoyed a very good market in
Europe, several foreign companies established their manufacturing units
in Alappuzha which had the advantage of plentiful availability of raw
material , natural facilities for rotting husks, and the cheap water
transportation of the place with European Tradesmen.
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(d) Coir Board
The Coir Board was established by the Central Government under the
provisions of the Coir Industry Act, 1955. There is a Coir Research
Insti tute functioning at Kalavoor. The National Coir Training and
Designing Centre were also established at Alappuzha in 1965.
The coir Board is the competent authority by sponsoring new coir
industries under the government of India licensing rules and procedures.
The production of both brown fibers has increased substantially due to
the effort and encouragement of coir board.
2.1.7 Uses of Mattress
Generally speaking the function of the mattress to provide a comfortable
surface to rest or sleep upon. There are mainly two types of customers
for mattresses. They are:
1. Institutional Customers (Hospitals. Hotels, Railway, Army,
Recreational Institutional, etc.)
2. Private Customers (Private individual)
Insti tutional Consumers are not very likely to buy their mattresses in
shops in contrary to private consumers. They usually get them from
wholesalers or directly from the producers. The mattresses bought by
institutional consumer’s often severe specific purposes. These special
purpose products are not fully competing with m attresses for private
consumers, for mattresses for institutional use. Extra requirements often
apply as compared to mattresses for household use. So there seem to be
two relevant differences between private and institutional consumers
that have their effect on what can be considered competi ng products:
Functional requirements
Distribution system / availability
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Specific consumer demands have resulted in different types of
mattresses that are available in the shops. Such specific consumer
demand may include for example:
Size
Price
Conformity (sufficient and overall parts of the body)
Durability
Damp permeability
Firmness/softness
Insulation value of the mattress (some people l ike a warm
mattress Or a mattress with a winter and summer side
Preferred sub-levels under each factor used for evalua tion by buyers in
the purchase of a mattress are:
Factor Preferred sub-level
Price (Rs) 1,500-2,500-4.500
Thickness 3”,4”,5”
Density(Kg/m3) 20,30,60
Color of tapestry Blue, Green, Yellow
Design of mattress Plain, Flowers, Line, Designs
Measurement 72x30, 72x42, 75x60
Foam (%) 10,20,30
Table 2.1: Uses of Mattress
The decision to purchase a particular model was the result of the utility
that the buyer perceived in combination with the factor sub -levels
existing in the brand. The selection of the brands by most of the
household is done by evaluating 2 -3 brands on the parameters like price,
softness, thickness, tapestry, design, brand name, weight, promotion
scheme etc. and after visiting 3-3 retail outlets. However, there were
strong regional brands in most of the markets. Some of the popular
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brands in these markets were Kurl-On, Duroflex, Bedsy, Centaury,
Restolex, Starlite, Aaram, Coiron, Rilaxon.Sulfex, Sunidra and Rubco.
2.1.8 Market Share and Brand Evaluation
Indian mattress industry is a Rs.27.50 bil lion market where 73% belongs
to the established cotton mattress . The rubberized coir mattress industry
is worth Rs.5.50 bil l ion with the branded rubberized coir market worth
Rs.3.70 billion. Kurl -On is a leading player in the country with 25%
market share in the rubberized coir mattress followed by Duroflex,
Starlite, centaury and Aaram. Duroflex has a market share of 16%
followed by Starlite with a market share of 11% and Centuary with a
market share of 9%. While all the three brands have a national presence,
Aaram with a market share of 7% has a strong presence in De lhi and
North India. Rilaxon is strong in East, Restolex and Bedsy have a strong
base in Karnataka Ahile Coiron and Sulfex are popular brands in Kerala
and Tamil Nadu,
Most of these brands showed a sales growth of 5 -15 % during the last
two years. In addition to the ten popular brands, there are a host of
regional and local players both in the branded and the unbranded
category. Full PU foam and spring mattresses also ha d growing markets
with 55 and 1% market share respectively. The two major players in the
PU foam mattress market are Sleepwell and mm foam. Springwel is a big
player in the spring mattress segment.
2.1.9 Growth & Development of the Industry
Declining trend in demand for coir have recently revolted due to
china’s strongly growing markets for coir to be used in mattress,
furniture& geo textiles. New technologies for the conversion of coir into
value added products. Such as car scat tops &composition also p romise
to expand the global use of coir and offer opportunities the Indian coir
industry most improve the consistency of its products and familiarizes
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itself with the structure of the respective markets present status of the
industry.
Coconut trees are grown in all parts of the country all parts of the tree
are useful providing food fuel timber by products and the raw materials
for numerous handicrafts and industries. One of the major raw materials
used in coir fiber it extracted from the external covering of the coconut.
It is natural biodegradable and environment friendly it is tough and
durable versatile and resilient resistant to flame and fungi, provides
insulation and helps sound modulation coir path in the dust after
extracting fiber hygroscopic in nature i t is good soil conditions and
substi tute for peak moss in horticultures. It is converted into organic
manure for soil improvement and higher yield. From the humble husk an
expert, employment oriented industry in Tamil Nadu for ‘peat moss’ s oil
conservation.
White fiber is abstained from green coconut husks immused in water
for 6-9 minutes. A mechanized process of extraction has been adopted
recently. Yet the traditional manual operation remains predominant.
The latter resulting in a product of higher tensile strength, even of twist
which has s greater demand. Yarn spun from white fiber is extremely
fine and soft textures with superior color absorbency and commands a
higher.
Recently coir from Alappuzha, where the company is loc ated has been
accepted worldwide as from other marketing destination “Alleppey Coir”
2.1.10 Future of Coir Industry
The coir industry in India has a history and tradition which dates back to
the nineteenth century. One of the major traditional industries of Indian
coir provides livelihood to lakhs of artisans in rural areas. This industry
took roots in India’s southern states along the coast line. Being 100
percentage natural moth proof, fungi resistant, biodegradable and eco -
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friendly, today coir has become an article of every day use in modern
life with a product range encompassing mattress, matting’s, doormats,
garden articles etc.
The government set up the Coir Board under the provisions of coir
industry Act 1953 for the overall development of the coir industry. India
is the major exporter of coir products. About 40% of the coconut husk is
utilized by the coir industry. The extensive improvement in the
utilization level of raw material to 60% will lead to employment
generations up to 8 lakhs workers duri ng the close of eleventh five year
plan period. The industry also fetches crores of foreign exchange by
export of coir and coir products. It is expected that the export will cross
more than 1000 crores in XI the plan period. Now coir is exported more
than 100 countries.
A major portion of the population in the Kerala is dealing with rubber
cultivation and agriculture sector. As far as the small scale industry is
concerned, a half of the portion is dealing in coir and textile industry.
The major coir manufacturing units in Kerala are in Alappuzha and
Ernakulum. As far as the population in Kerala is concerned, only 22%
are professionals and employees, rest of them are small traders,
agricultures and cottage industries.
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2.2 Company Profile: Duroflex Private Limited
History of the Company
Duroflex is a leading manufacturer of rubberizes coir mattress in India
Duroflex is a modem manufacturing- unit in India at Alleppey (Kerala)
Hyderabad (Andra Pradesh) and Hosur (Tamil Nadu), are continuously
translating the market demand into products that are used extensively.
Households and the comfort products industry worldwide. Late Mr. P.C
Mathew promoted Duroflex Coir industries Pvt. Ltd. In 1963 at Alleppey
Kerala with a view to use agro based inputs for the manufacturing of its
products. Subsequently in 1982, the manufacturing operations of
Rubrofibre Pvt. Ltd. Were bifurcated and Duroflex coir industries took
over the operations and management of the factory.
Duroflex had today three manufacturing units in Alleppey. Hosur and
Hyderabad and an extensive marketing organization with company sales
office and 1500 stockiest al l over India. Duroflex rubberized coir is
manufactured using eco-friendly materials coconut fiber and 1 00 percent
natural rubber latex form. The raw materials that the company Duroflex
uses are 100 percent natural and environment friendly. In the growing,
processing and production processes no harmful substances are used or
released. Duroflex has always adopted methods that encourages minimal
waste with minimum recycling .
Today Duroflex is the largest manufacturer -exporter of sleep products
from India with modern factories in Alappuzha, Hyderabad and Hosur.
Duroflex translates the market demand into product s that are used
expansively in households, hotels and hospitals. From humble beginning
in1963, Duroflex has 3 manufacturing units for rubberized coir matters,
one to make Natural coir -ply, Eco friendly plywood substitute developed
from in house R x D. Delegation sponsored by coir Board went to
Europe in the year 1953 with a specified goal of establishing more
advanced industries in the coir sector. The delegate gave minimum
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importance for setting up rubberized coir factories in India. They have
reasoned that on both coir and rubber are available in India it will be
ideal to set up the factories in India for exporting finished products to
Europe and other countries. The coir board gave consent to seven for
importing machinery and setting up the units. At th e time all the
machineries were imported from aboard. The main suppliers of
machinery were Austria and Germany. Today the technology is available
in India.
M/s Duroflex (P) Limited has developed new technologies and
machinery for the manufacture of Rubberi zed coir products. They set up
3 factories with 100% indigenous machinery. The machines have much
greater output and more efficient than the imported machines. Late Mr.
P.C. Mathew promoted M/s Duroflex coir Industries (P) Limited in 1963
at Alappuzha; Kerala with view to use agro based inputs for manufacture
of i ts products. The company now and then is engaged in the production
and marketing of the mattresses, rubberized coir, pillows, bath mat, car
cushions etc. The plant site at Chungam spread over an a rea of 2 acres.
It is situated in such a place where transportation and nearness to market
and all other factors are available.
Duroflex products are known for consistent and standard quali ty and the
company gives priority to apply strict quality control i n its operations.
These are applied to procurement and processing of raw materials,
manufacturing of finished products and testing them to rigorous
standards. Company is primarily engaged in manufacturing and
marketing of mattress to the consumers. The Com pany also gives
importance to products and process development, development of plant,
machinery, engineering and introduction of new products
As a pioneer in manufacture of mattress, rubberized coir and foam
Duroflex has always sought to maintain leadershi p. Research and
Development at Duroflex have continuously come up with newer
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processes and machines that enhance production, productivity and
quality at all stages technological edges that remain always on Duroflex
Shop floors. Fully automatic rubberized coir plant with all accessories,
auto weight check, auto vulcanizing, clothing, cutting, pipe edge,
numerically controlled auto packing, automatic batch PUF plant,
transversal cutter, peeling machine, and cloth winder, Duroflex Is the
largest exporter of sleep and comfort products from India. Through Its
export wings “Coco Latex Exports Pvt. Ltd.” is the largest Indian
exporter of sleep and comfort products. Duroflex’s modem
manufacturing and R & D centers are continuously translating the
market demand into products that are used extensively in the comfort
product industry worldwide. Company is engaged in export of its
products to Europe, Middle East arid Far East through Its subsidiary
company Duroflex Exports Pvt. Ltd.
To survive competit ion in the customer driven market, Duroflex Pvt.
Ltd. Hosur has established a quality management system at Hyderabad
and Alleppey units. The objective of the company is to supply
rubberized coir products, which meet the ever increasing demands of the
customers at competitive prices by continued process improvement and
by the application of “State of the art technologies?. In tune with the
market and ever growing needs of its customers, Duroflex is constantly
developing new products that offer a greener option to the world .
2.2.1 Objectives of the Company
1) To attain the major market share
2) To offer high quality products for the customers
3) Ensure cost effective products
4) To create satisfied customers
5) Be a major part of the socio -economic development of the societ y.
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6) Create good relation will the dealers as well as customers
7) Increase the profitability of the company to attain consistent
development .
2.2.2 Corporate Vision
Market returns and customer complaints together not to exceed
0.4% of the sales
On-time delivery to distributors/dealers as per commitments
Continual Improvement In product and quality control processes
with to reduce costs
Accident free work by exercising established safety practices.
2.2.3 Corporate Mission
Our quality philosophy Is to p rovide rubberized coir products of high
quality and reliabil ity at optimum cost, meeting customer implied
specification and regulatory and statutory requirements by application of
pro-active approach to ‘get things right the first time’. We shall
continually strive for excellence by up gradation of skills of workmen
through training, continuous up gradation of facilities and application of
state-of-the-art technologies.
2.2.4 Management of Duroflex Private Limited
No invitation is issued to the public to subscribe for any share in
or debenture of the company.
The number of members of the company (exclusive of the persons
who are in the company and of the persons who were the members
of the company while In the employment and have continue d to be
the member after ceasing to be In the employment of the
company)is limited to fifty provided that when two or more
persons jointly
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Hold more than one shares of the company they are treated as
single member.
2.2.5 Board of Directors
Mr. George L. Mathew BA, BL- is currently the managing
director of Duroflex Pvt. Ltd., comfortek Advanced Products Pvt.
Ltd and Unisun Technologies Pvt. Ltd. He is also promoter
director of Coco Latex Exports Pvt. Ltd. , a 100% Export oriented
unit.
Lt.Col. Mohan V. Andrews (Rtd.)-has joined the company as
General Manager in 1998. He is a director of s Duroflex Limited
and Director of Coco Latex Export Pvt. Ltd.
Mr. Shaji Joseph BSc, FCA- is the director with Duroflex
Limited. And also director Coco Latex Export Pvt. Ltd
Mr. Raju C. Jacob - is the managing director with M/s Chackson
Chemicals Private Limited
Capt. Jojo Chandy (Rtd.) - is the managing director with M/s
Sahyadri Rulax ( India) Private Limited
Lt. Col. S.J Gosh (Rtd.) - joined the company in 2004 as General
Manager after his tenure with the army.
Mr. Firdosh H. Sholapurwala - is the managing director of M/s
Comfortek Private Limited and proprietor of M/s .Hormuzdji and
Sons Private Limited., manufacturers of special equipm ent for the
Indian defense forces and other private customers.
2.2.6 Duties and Powers of Board of Directors
1. Unless and the company in general meeting otherwise decide, the
number of directors is not to be less than two and more than ten
2. The board of directors of the Duroflex Private Limited is the
family member itself
3. Currently the board of the directors of the company constitute
eight members
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4. The board of directors has power to appoint any one or more
persons as special or technica l or commercial or executive director or
directors for such t ime and on such terms as they determine. The
board may subject to the provisions of the act delegate’s son off its
body as it thinks fit and any committee so formed can in the exercise
of the powers so delegated confirm to any regulations dun way from.
Time to time be imposed upon it or then by file board.
5. The board of the directors has the power to co-operate one or
more persons to be the director so that the number is not to exceed
ten. The board has the power to appoint alternate directors to the
manner mentioned in section 313 of the act.
6. Subject to the provisions of the section 314 of the act with regard
to an office of place of profit a director may hold any other office
under the company, expect that of an auditor, in conjunction with the
office of directors on such terms as to remunerate and otherwise as
the board of directors may arrange
7. Subject to the provisions of the Act, the director may from time to
time raise or borrow any sum of money for and on behalf of the
company from the members or other persons, companies, any
financial institution or banks, or any of the director may himself
advance money to the company on such interest as may be approved
by the directors. The board ma y delegate such borrowing power to
any one or more of the directors including the managing director.
8. Subject to the compliance with section 297 of the Act. A director
or his relative, a firm in which such director or relative is a partner
in such firm or private company of which the director is a member or
the director is capable of entering into any contract with the company
for the sale or purchase or supply of any goods, material or service or
underwriting the company’s shares or debentures.
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2.2.7 General Manager
The day to day business affairs of the company is entrusted with and is
under the control of the general manager. He is one who is responsible
for al l the ups and downs of the company. In Duroflex Pvt. Ltd. the
marketing
Department and the Human Resource Department is directly handled by
the general manager
2.2.8 Company Secretary
The company secretary is responsible for the company’s compliance
with the various provisions under the companies Act 1956.
2.2.9 Departmental Managers
Each department of the organization is headed by respective managers.
Each of them do their best of attain departmental objective and there by
accomplish the goal of the organization. Each manager is accountable
for the activities of their respective department s.
2.2.10 Achievements
Duroflex is an ISO-9001:2000 certified company. This certification has
been administered for Duroflex by the American Quality Assessors
(AQA). Duroflex private Limited is also a member of the international
Sleep Products Association (ISPA) and therefore updated on the latest
developments in quality and technology in the category. Duroflex
private l imited is only mattress manufacturer in India to win the coveted
ISO 9002 certification. The company exports its products to over 25
countries with 45 years of rich experience.
2.2.11 Duroflex Group Profile
Duroflex group of companies are:
1. Duroflex Private Limited
2. Coco Latex Private Limited
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3. Alleppey Latex
4. Unisun Technologies Private Limited
2.2.12 Duroflex Private Limited
Duroflex Private Limited began as a small plant in Alleppey; Kerala Is
now a leading Indian and International brand. Over the years Duroflex
has evolved from mattress manufacturing plant to sleep Products
Company with wide range that includes pil lows, cush ions, spring
mattresses, polyurethane foam and high -tech comfort systems with
products used extensively in homes and in the hospitality and health
care Industries. A member of the International Sleep Products
Association (ISPA), Duroflex had 8 factories ac ross Kerala, Tamil Nadu
and Andra- Pradesh which is ISO 9001:2000 certified by the American
Quality Assessors (AQA).Duroflex has 60 stockist and over 3000
distributors across India .
2.2.13 Coco Latex Private Limited
An export oriented unit and a group company, Coco Latex specializes in
100% natural and eco-friendly mattresses. Manufactured strictly from
100% natural rubber and natural coconut fiber, Coco Latex products are
in great demand in the environment - conscious markets of Europe. Made
to exacting 5852:1990 specifications, some of these products are made
with 100% natural expandable graphite and are fire -retardant. Coco
Latex’s manufacturing and R & D centers are located in Kerala for easy
access to the natural ingredients. Coco Latex’s own manufacturing
facili tates at Munnilave, Palai are where the latex foam products are
manufactured. Coco Latex products are cert ified by ECO Institute,
Germany, LGA, Oeiko Tex- Standard 100, Germany and SATRA, UK.
2.2.14 Alleppey Latex
Established in 1994, Alleppey Latex is a group concern and deals with
centrifuged latex production. Alleppey Latex sources latex from its own
organic plantations as well as others and has its crumb Rubber Factory a
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Palai. A major share of the production of the Alleppey latex is consumed
by Duroflex and Coco Latex. Centrifuged latex is the raw material for
manufacture of rubber based products like foam rubber, elastic thread,
Balloons etc. Alleppey latex is also in the process of obtaining organic
Certification by one of Germany’s leading certifying organizations.
2.2.15 Unisun Technologies Private Limited
Unisun technologies. A Duroflex group concern, strives to promote
technically and commercially viable clean energy products and services
worldwide. Founded in 2000, Unisun has the potential to become a lead
player in the group tomorrow. Unisun has a range of products across the
solar (Thermal and Photovoltaic), bio -fuel, bio mass, waste to energy
and small Hydro and wind energy spectrum. Based in Ban galore. Unisun
has clients in the domestic, corporate and industrial segments. Towards
furthering the needs to concentrate on sustainable energy sources,
Unisun has also organized two international events in Bangalore with
participants from India and abroad.
2.2.16 Business Overview
Duroflex has today 3 manufacturing nit in Alleppey. Hosur (Tamil
Nadu), and Hyderabad and an extensive marketing organization with the
company sales office and 1500 stockiest all over India. The main
product of the company is rubberized coir mattress, which are bought by
domestic households, hospitals and bulk users. The company also
manufactures industrial products of rubberized coir for packaging air
filtrat ion, bus and railway seats and carpet underlay. The company ia
engaged in export of its products to Europe, Middle East and Far -east
through its sister company Coco Latex Private Limited.
Duroflex Rubberized coir is manufactured using eco -friendly materials
coconut fiber and 100 percent natural rubber latex foam. The raw
materials the Duroflex uses are 100% natural and environmental
friendly, in the growing, processing and production process no harmful
substances are used or released. Duroflex has always adopted methods
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that encourage minimal waste with maximum recycling. Dur oflex
products are known for consistent and standard quality and the company
gives priority to apply strict quality control in its operations. These are
applied to procurement and processing of raw materials, manufacturing
of finished products and testing them to rigorous standards. Company is
primarily engaged in manufacturing and marketing of mattress to the
consumers. Company also gives importance to product and process
development, development of plant and machinery, engineering and
introduction of new products. As a pioneer in the manufacture of
mattresses, rubberized coir and foam Duroflex has always sought to
maintain leadership. Research and development at Duroflex have
continuously come up with newer processes and machines that enhance
production, productivity and quality at all stages -a technological edge
that remain always on Duroflex shop floors. Fully automatic rubberized
coir plant with accessories, Auto weight check, Auto vulcanizing.
Clothing cutting, tape Edge, Numerically controlled auto pa cking,
automatic batch PUF plant, traversal cutter, Peeling machine and cloth
winder.
Duroflex is the largest exporter of sleep and comfort products from
India. Through its export wings “Coco Latex Exports Pvt. Ltd” is the
largest Indian exporter of sleep and comfort products. Duroflex’s
modem manufacturing unit and R & D centers are continuously
translating the market demand into products that are used extensively in
the comfort products industry worldwide. Company is engaged in export
of its products to Europe, Middle East and Far -East through its
subsidiary company Duroflex Private Limited. To su rvive competition in
the customer driven market, Duroflex Private Limited, Hosur has
established a quality management system at Hyderabad and Alleppey
units. The Objective of the company is to supply rubberized coir
products, which meet the ever increasing demand of the customers at
competitive prices by continued process improvement and by the
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application of the “state -of- the-art technologies”. In tune with the
market and ever growing needs of its customers Duroflex is constantly
developing new products that offer a greener option to the world.
2.2.17 Corporate Address
1) Duroflex Private Limited
Registered Head Office and Factory -1 P. B No.3808
Chungom, Alleppey- 688010
2) Duroflex Private Limited
Factoiy-2
No 7 First Floor
KodavaSamaja Building
Main, Vasanthnagar
Bangalore- 560 052, India
3) Duroflex Private Limited
No. 6 Komaranplly village
HosurAnekal Road
Betugondappally P.O
Dharampuri Dist.Hosur-635125
4) Duroflex Private Limited
P 4/6 Industrial Development Area
Nachram, Hyderabad- 501507
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2.3 Product profile
Duroflex Private Limited deals with various kinds of sleep comforts, in
which mattress is the main product that they comply with. Company is
manufacturing different kinds of mattress in different verities. Their
products are highly durable and its price is affordable to all classes of
people. The quality of their product is the main reason for their
recognition and good will that they possess all over India and also
abroad. Following are the range of mattress available for Duroflex .
2.3.1 Duroflex Rubberised Coir Mattress
Rubberized coir mattress is the combination of natural materials like
coconut fiber and rubber. The combination creates a s heet that provides
natural comfort, firm support , allows for air circulation and non -
absorbent. The various verities include :
Duro Foam
Dream On
Premium Special
Kwilt Special
Bliss
Crown Regular
Crown Ortho
Golden Bliss
Bodyline
Seasons
2.3.2 Duroflex Spring Mattresses
Spring mattress, across the world, is now synonymous with luxury. It is
to cater to this customer who demands greater comfort that Duroflex
manufactures Springtek, its range of high end spring mattress. Springtek
mattresses are manufactured with the very latest technology available
today.
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Especially important springs of German technologies and the very latest
Italian CNC quilting machines bring you the best spring mattress
available in India today. The various verities are:
Bonnel Spring
Pocketed Spring
2.3.3 Duroflex Polyurethane Foam
The DuroGold PUF range of products offers pure flexible PUF, which
ensures that the product retains its shape and provides comfort and
support for years, unlike regular foam. Machines are espec ially designed
to meet specific customer requirements. CNC based high precession
cutting machines also enable the cutting of foam blocks into diverse
shapes and sizes to manufacture high quality molded pillows and other
PU products. The different types are :
LD (9.5D-10D)
13D, 16D & 18D
18SS&20SS
23D & 28D
32D & 40D
2.3.4 Duroflex Pil lows and Cushions
Duroflex offer comfortable and healthy range of pillows and cushions.
The pillow needs to be designed scientifically as it need to provide the
right cushioning for your head and neck. It is essential that your pillow
hold your neck and spine in a neutral position. The different varieties
are:
Dimple
Sensus
Flexi Puf
Dream On Pillow
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Rubberized Coir Pillow
Duro Pil low
Supersoft Bolster
Eco Pillow Settee
Comfy-Puf
Elegant
Supersoft Cushions
The company is also producing and exporting the following items also.
2.3.5 Rubberised Coir Sheets
It is made from coir and natural rubber latex blended with anti-oxidant
for long life.
Table 2.2: Rubberised Coir Sheets
Applications
Sheets and pads for mattress fully made up mattresses.
Furniture
Carpet Underlay
Fillers
2.3.6 Natural Latex Foam
Natural rubber is eco-friendly bio degradable and renewable with an
elasticity that cannot be achieved by any other materials. It comes in pin
core and cavity sheets
Density 60 to 150 g/m3
Thickness
20 to 200
Size (mm) 2000(L)*2000(B)
Application
Fully made up mattresses
Sheets and pads for mattresses
Furniture
Carpet underlay Filters
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Table 2.3: Natural Latex Foam
Applications
Mattresses
Cushioning
Furniture
Composite mattress
Latex Foam Pillows
These are pillows made with 100% natural rubber.
2.3.7 Fully Made-Up Mattresses
European technology meets Indian coir to give the world the finest in
sleep products. Export brands: Bodyl ine, Quilt , Coir and spring,
Sandwich Combo, Comfortek. Other brands are Bliss, Crown, Seasons,
Premium SDL and Standard DM.
2.3.8 Curled Coir
The spring fiber made from curling of raw coir.
2.3.9 Price Specification
Quilt
Rubberized Coir Density 80kg/M3+5%
Thickness 75/100/150
Size up to(mm) 2000(L) 2000b
Top quilted
Density 60 to 90 kg/m3
Thickness 25/30/50/100/15
0
Size (mm) 120000)*
1200(B)
Application Mattresses
Cushions
Furniture
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Cloth Printed cotton
Construction Rubberized coir and 15mm
Price 1343
Standard DM
Rubberized Coir Density 80k/g
Thickness (mm) 50/75//100
Size up to(mm) 20000(L)*2000(B)
Top quilted 25mm flexi PUF
Cloth Handloom jacquard
Construction Rubberized coir with100%
Price 3252
Premium SDL
Rubberized Coir Density 80k/g
Thickness (mm) 50/75//100
Size up to(mm) 20000(L)*2000(B)
Top 20mm PUF/20D5%
Cloth Satin Fine Weave
Construction Rubberized coir
Price 3455
Bodyline
Rubberized Coir Density 80k/g
Thickness (mm) 50/75//100
Size up to(mm) 20000(L)*2000(B)
Top 20mm PUF/20D5%
Cloth Mill cloth
Construction Rubberized coir pure real
Price 4233
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2.3.10 Branches of Duroflex Private Limited
Duroflex has mainly three branches:
Alleppey
Hosur
Hyderabad
Fig 2.1: Branches of Duroflex pvt.ltd
2.3.11 Distribution Channel
Company is following direct distributing channels, from the factory the
products are directly handed to the distributors. Then it is the duty of
the distributors to supply the product in supply the products according
to the order to the dealers. There is no middleman. The company have
mainly 5 distributors around Kerala which can be represented as:
Fig 2.2: Distribution Channel
In all these distribution centers there is corresponding warehousing
facili ty which is known as “Duroflex Depots”. In these depots a large
volume of products can be stored safely.
2.3.12 Needled Punch Coir Sheets
Rolls with or without rubber and with or without machine
Density : Up to 1200 gms/square meter
Duroflex
Alleppey Hosur Hyderabad
Distributors
Trivandrum Alleppey Cochin Calicut Thrichur
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Thickness : 12mm(l/2)
Size: 2000mm width up to 29 meter length or cut piece.
2.3.13 Advertisement
Advertisement is one of the main promotional activities that is to be done
in order to increase the market share and to meet the competit ion in the
industry. In every annual budget of Duroflex Pvt Ltd. The company set
apart around 8% of i ts profit for the advertisement purpose. The companies
conduct the get together of its main distributors and dealers in or der to
collect the feedback. It is on the basis of this information. Company
decided the amount that is to be reserve for the advertisement purpose.
Company is not directly involved the advertisement purpose. For making
better advertisement company seeks assistance from an external agency
called “Jellita” an advertising agency in Kottayam. The agency has decided
the punch line for the Duroflex mattresses “brings romantic in you”.
2.3.14 Pricing Strategy
Duroflex is following ‘single price policy’. It means there is no
discrimination among classes. This price policy does not find favour
with quality buyers who feel that they should have been charged much
lower prices than the small - lot purchases. The company has goodwill
among mattress industry, so the competitors pricing policy will not
affect very much.
2.3.15 Types Of Products
Duroflex mattress is the main product of Duroflex Private Limited.
Some other items in the product range include:
Duroflex pillows
Duroflex cushions
Duroflex bed sheets
Duroflex mattress
Duroflex pillow cover
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CHAPTER - III
ORGANIZATION STRUCTURE
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3.1 Organization Structure
Fig: 3.1: Organization Structure
BODs
MD
CEO
GM
Company Secretary
Sese
Accountant &
Admin Manager
Office Manager Factory Manager
Accounts
Assistants
Cashier Dispatch I/C Purchase I/C
Sales I/C Supervisor Supervisor
Workmen Workmen
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3.2 Production Department
Production is the functional area responsible for turning inputs into
finished outputs through a series of production process. The Production
Manager is responsible for making sure that the raw materials are
provided and made into finished goods effectively. He or she must make
sure that the work is carried out smoothly, and must supervise
procedures for making work more efficient and more enjoyable.
Fig 3.2: Production Department
CEO
GM
Factory Manager
Purchase in Charge Lab in Charge
Supervisor Supervisor
Workers Workers
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3.2.1 Production Flow Chart
Figure 3.3: Production Flow Chart
Start
Start
Latex Preparation Heating of Rope
Untwisting of Rope
Distribution of Rope
Latex Spraying
Fleece Drying
Cutting and Stacking
Pre Pressing
Hot Pressing
Vulcanization
Trimming
Furnishing
Inspection
Despatch
Waste Breaker
Trimming
Waste
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3.2.2 Production Process
The production process is done under the strict control of the Factory
Manager and other supervisors. The process begins from the
procurement of the raw materials and ends in the packaging and
dispatching process. The raw materials used for the production includes
the natural latex and coir. The step in the production process include
procurement of raw materials, quality control and processes, latex
compounding, rubberizing, vulcanizing, hot pressing, cutting, quilting,
finishing, and packing. All these process is done by using modem
machines and operated by skilled people. The coconut fiber which is
obtained in twisted or curled form is cured in hot chamber, which gives
the fiber the natural curl and enhanced bounce. The twisted ropes are
converted into natural spring structure which is the basic raw mat erial
for the mattress production.
These fibers is carded and formed into sheets which are sprayed with
compounded natural rubber latex to form resilient fleeces dried. These
fleeces are then placed in layers, hot pressed, vulcanized and machine
cut to specified dimensions. The result is a resilient form that last long,
has a high level of firmness, is non -absorbent, allows air circulation and
provides natural comfort.
The coir sheets and quilted or non-quil ted cloth are stitched together
using automatic tape edge machine. After sti tching the machine
undergoes quali ty check. Then it is carefully packed using automatically
controlled semi-automatic packing machine. This ensures a new crisp
look to each mattress
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3.2.3 Production Planning
The factory Manager will receive the work order for the amount of
products that Is to be produced. A copy of the work order will be give n
to the dispatch section also to ensure the accurate amount of products.
Mostly the outers are placed by the dealers of the company to ensure the
proper supply of the products in the market. The orders are placed
mostly through telephone. The production is mainly done for the export
purpose than the domestic sale. More than 60% of the production is done
for the export purpose. The agents in the foreign countries placed the
orders for the products. Mainly the export Item includes the bare sheets.
3.2.4 Material Requirement Planning
MRP provides t ime scheduling information specifying when each o f the
material , parts and components should be ordered or produced. The
companies MRP aims at improving the plant operating efficiency.
Improvement in the efficiency provides a base for saving the cos t of
organization and increase in the margin follows:
1) Reorder Level: the company reaches its reorder level in 20 days.
Before reaching the minimum reorder period the factory manager should
ensure that there will be enough raw materials in the store for the
smooth functioning of the production process. The company must not
reach a situation where the production is not carried done due to the
lack of materials
2) Plant Efficiency: Duroflex has highly efficient plant in
production. In 1 hour the plant has a capacity to procure 300 kg of units.
But the company is not utilizing the entire capacity. The pro duction is
done according to the order.
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3.2.5 Resources Management
MD and GM of Duroflex determine and provide the resources needed for
the implementation of the quality management system and continually
Improve its effectiveness to enhance customer satisfaction by meeting
customer requirements.
3.2.6 Procedure for Non-Confirming Products:
There is a well-established and maintained procedure for identification
of product non-conformity and resolving them prior to delivering the
product to the customers or to prevent in advertent use or in further
processing. It helps to minimize the number of times non -conformity
doesn’t get during a predetermined inspection/audit and gets iden tified
later during processing.
3.2.7 Reporting Of Non-Conformity
Any employee can point out non-conformity. Authority to decide the
disposition and verification of effectiveness of action on non -conformity
shall be with concerned executive/manager. For product related
conformities concerned executives/manager has authority to stop further
processing of non-conformity is resolved satisfactorily
3.2.8 Store and Ware House Management ;
Duroflex Private Limited has mainly 5 distributors in Kerala and total
21 all over India. In all these 5 distribution centers the company has
their own depots in order to store the finished products. These are
commonly known as Duroflex depots and here a large volume of product
can be stored safely.
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3.2.9 Waste Management
In the product process there is no much waste. The 20 -25% of the waste
mostly is the trimming waste. This is again used in the production
process by recycling process.
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3.3 Human Resource Department
Human Resource Management (HRM) is also a management function
concerned with hiring, motivating and maintaining people in an
organization. It focuses on people in organizations. In simple sense,
HRM means employing people, developing t heir resources, utilizing,
maintaining and compensating their services in tune with the job and
organizational requirement.
The main functions are;
a. Conducting job analysis
b. Planning Labor needs and recruiting job candidates
c. Selecting job candidates
d. Conducting orientation and training programs for new
employees.
e. Managing wages and salaries
f. Providing incentives and benefits
g. Appraising the performance
h. Communication with employee9 interviewing, counseling,
discipline)
i . Training and developing managers
j. Building employee commitment
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3.3.1 Department Structure
Fig 3.4: Department Structure
3.3.2 Recruitment and Selection Process
The recruitment policy of the company is done by the top level
management of the organization headed by the CEO. For the recruitment
of the employees in the lower level management, no specific policy is
followed. For the factory employees of the organization is selected from
the local people, who have got experience in manufacturing pr ocess. To
fill the vacancies in the higher level a set of procedure is followed,
which includes;
Making media advertisement about the vacancies
Scrutinize the application form
Invite eligible candidates for the interview section
CEO
GM
Employees
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The interview is done by the company management committee, which
includes the Board of Directors, External Directors and senior personal
of the organization. Sections collected by personnel Department
Time officer
Security section
Disciplinary section
3.3.3 Time Officer :
The office keeps the entry and exit of every employee, it looked after by
a time officer and other clerks. The function of the time officer is as
follows:
1) To check the punch card
2) To see the strength of the in -workers sorting and packing
3) To keep the adminis tration record of al l the employees
4) To maintain the attendance register of al l the employees
5) Make necessary salary statement
6) Issue leave application
3.3.4 The Security Section
This section provides overall protection for the company. In this secti on
there is a security officer and under him there are two securit ies guards
in each shift . The man is charge of security is responsible for the overall
security of the firm. The firm has certain rules and regulations. The
guards have to report to the security officer from time to time. The main
duties of the security section are
To issue gate pass
To keep a record of incoming and outgoing vehicle
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Safeguard the company premises
To check loading and unloading materials
3.3.5 Performance Appraisal
The performance of the employees is appraised on the basis of their
commitment towards the work, regular attendance and the quality of
work done. The performance appraisal process is shown below.
Fig 3.5: Performance Appraisal
Establishing Standards
Communication Standards to the Employees
Measuring Actual Performance
Comparing Actual With the Standards
Discussing Reports with the Employees
Taking Corrective Actions
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3.3.6 Grievance Handling
As every person is unique in the character and the behavior, there are
changes to arise grievances in the organization between employees or
between employees and management. In Duroflex Private Limited, there
is less chance of occurring disputes. If any su ch problem arises, the
company handles it by the method of open surveys and hearings. And
enquiry committee is also formed to enquire about the matter and on the
basis of the reports submitted by committee and also by hearing the part
of the employees; the management will take immediate action, by giving
proper guidelines to the employees.
3.3.7 Wages and Salaries
Salary is fixed for the employees on the basis of their seniority and the
position of the employees. Wages are paid to the workers by the
complying with the Minimum Wages Act. The wages given to the
employees has to increases in proportion to the increase in production.
Along with the salaries and wages, employees are paid with the
additional bonus, long term incentives and perquisites. Bonuses are paid
on the basis on Bonus Act. Company is also providing medical care
facili ties, financial counseling, vacation travel etc.
3.3.8 Promotion and Transfer
The company will give promotion to the employees, if the employees
proved their efficiency in compan y matters. Mostly the company made
promotions if there is a vacancy in the higher level. Transfers are
comparatively less in the organization. It is done, if there are need
arises for experienced employees in any other office or branch of the
company.
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3.3.9 Management Development Program
Duroflex Pvt. Ltd is using many techniques in order to develop the
managerial as well as the operational skil l of employees, which include;
On the job training
Coaching through work experience
Development program includes :
Training is given to the employees on past experience and
anticipated assignments.
Assessing manpower needs
Development of potential and capabilities of employees through
training and coaching.
3.3.10 Safety and Security of the Employees
Duroflex Pvt. Ltd is providing an accident free environment for the
employees. For those employees who are working in the production
department is giving necessary training on how to handle the
machineries safety. In the production department a supervisor is
employees to make inspection and to ensure the security of the
employees.
3.3.11 Participative Management:
In Duroflex Pvt. Ltd, most of the necessary policies and decisions are
made by consulting the employees of the organization also. The decision
is made by having a discussion between the top management and the
departmental heads. The department head will be able to collect the
suggestions and opinions of the employees who are working in the lower
level. Employees have the right to say their views and complai nts at any
time with the management. Thus all the decision are made after
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consulting the opinion of all the employees in the organization. Thus an
effective participative management is prevailing in Duroflex Pvt. Ltd.
3.3.12 Employee Turnover
In Duroflex Pvt. Ltd, the employee turnover is comparatively very low.
But in Hosur branch of company the turnover is high because it is an
industrial area. The employees are not interested to work in a company
for a long period as the opportunities for employment is very high in
those places.
3.3.13 Attendance and Office Timing
Duroflex Pvt. Ltd is providing very good working environment for the
employees. So in almost all days the company ensures 100% attendance.
Working time is 9:30 to 5:30. The company is using at tendance register
and all the staff members have to sign on the attendance register before
9:30. For the factory workers the attendance register is kept at the
security gate. And every worker has a sign in the morning and at the
time of leaving.
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3.3.14 Records Maintained By the Department
Personal File: the department keeps separate personnel fi le for
each employee who are permanently employed
Leave Register
Muster Roll
Insurance Record: Insurance record of human resources and
The factory premises are kept and updated by the personnel
department. (HR)
Salary and Wage Card: The department processes salaries and
wages at the end of every month and sends it to main office for
the receipt of amount to pay salaries.
Other Records: All records related to factory licensing with all
levels of government and local authorities are kept by personnel
department.
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3.4 Finance Department
The finance department takes responsibil ity for organizing the financial
and accounting affairs including the preparation and presentation of
appropriate accounts, and the provision of financial information for
managers. The main areas covered by the financial department include:
Book keeping procedure
Creating a balance sheet and profit and loss account
Providing management information
Management of wages
Raising of finance
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3.4.1 Department Structure
Fig 3.6: Department Structure
3.4.2 Functions of the Finance Department:
The main function of the finance department of the company is to
maintain the proper records of the financial details and to prepare the
final accounts of the company. The financial details of the company are
kept under the historical cost convention in accordance with the
generally accepted accounting principles. It also complies with the
company's act 1956. The company follows the mercantile system of
accounting and it recognizes income and expenditure on accrual basis.
The main functions include:
CEO
GM
Accounts Manager
Accounts Assistance Accounts Assistance
Accounts
Assistance
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Maintain full records showing full .particulars including
quantitative details and the situation of the fixed asset
Maintain proper records of inventory and financial transaction
Vouching and Documentation of financial transaction
Preparation of final accounts
Preparation of budgets
Arrangement and renewal of working capital funds
Comply with the details of the income tax, VAT etc.
Passing and settlement of all miscellaneous advances.
Perform works connected with insurance coverage of fixed asset.
Keeping personal l ife of employees relating to salary computation
and annual increment.
Prepare profitability trend reports and wage analysis.
Quarterly and yearly financial report preparation.
Making banks statements
Preparation assisting the coordination at all works connected with
finalization of accounts.
Assisting statutory/ Vigilance / auditors from headquarters.
Make internal and external purchases.
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3.4.3 Capital Structure of the Company
Table 3.1: Capital Structure of the Company
Duroflex is a private limited company, owned and managed by private
parties so the company has not issued any shares to the public. Capital o
the company is arranged in:
3.4.4 Source of Funds
Duroflex private limited has its source of fund mainly through equity
shares and loan funds. As i t is a private company the equity shares are
mainly in the hands of the private parties, which include the top
managers, board of directors and also close relatives of the company
officials. The shares are not issued to the public. The following table
shows the source of funds.
Table 3.2: Source of Funds
Authorized capital
Rs 10 crores
Paid up capital
24,040,870
SOURCE OF FUNDS (IN LAKHS) (2010-2011)
Paid up capital 20,640
Secured loans 51,643
Deferred tax balance 11,388
Reserves and surplus 97,472
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3.4.5 Application of Funds
The entire funds raised by the company are utilized more effectively and
efficiently for various purposes. The following table shows the
application of funds.
APPLICATION OF FUNDS (In Lakhs) (2010-2011)
Net Fixed Assets 90,097
Net Current Assets 64,256
Investment 28212,
Table 3.3: Application of Funds
3.4.6 Investment Proposal
Duroflex made its investment on the basis of the annual returns.
Company has an investment of Rs 28,212,000 in different financial
institutions, which includes kotak Mahindra, ICICI Bank and Canara
Bank. The main portion of the investment is in the Canara Bank.
Current investment in stated at low cost or market price. Mainly the
investment is done on the basis of return.
3.4.7 Budget
Company is preparing the annual budget at the end of every financial
year. In this budget all the details regarding the income and
expenditure of the company is flourished. Along with the annual
budget the company also prepares an advertisement budget. In this
advertisement budget, the amount that is to be spending for the
advertisement purpose is detailed. The amount that is to be set apart
for this is decided on the basis of the market performance, demand of
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the product, effect of the advertisement, etc.
3.4.8 Cost and Pricing
The raw materials cost constitutes 52% of the net billing rate (NBR) of
a unit of Duroflex mattress out of which the share of rubberized coir
was 50% followed by 8-10% of foam, 13-15%of cloth and 27% of
thread and label. The composition of other costs in the product was as
follows:
COSTS PERCENTAGE
Manufacturing overheads 8
Excise 4
Administrative overheads 3
Selling and Distribution overheads 24
Interest charges 4
Margin 5
Table 3.4: Cost and Pricing
Taxes (5%) and dealer margins were added over the NBR to fix the
maximum retail price (MRP). Duroflex offer a dealer margin of 29%.
3.4.9 Quality Control
A separate section called quality control system is working so
effectively and efficiently in the company to check the quality of the
product. Here the company ensures that the product is defect free a nd
make sure that the customer will be completely satisfied. After each step
in the production process, there will be all around check of the product.
After the manufacturing, the product will undergo a final inspection and
it will be certifying that there is no defect and the product is 100%
perfect. The final product is again tested to make sure that it performs to
the standards.
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The company has established document and Implement a quality
management system meeting the requirement of ISO 9001:2000 and
intends not only to maintain the same but also continually improve it
with a view to deliver quality product.
Duroflex has:
Identified needed for the quality management system and their
application throughout the company.
Determine the sequence and Interaction of the process.
Determine the cri teria and methods required ensure the
effectiveness of operations and control of these process
Ensure the availabil ity of information necessary to support the
operation and maintaining of this process.
Establish methods to measure monitor and analyses the process
and implement action necessary to active plant results and
continued improvements.
3.4.10 Quality Objectives
Market returns and customer complaints together no to exceed to 1%
of sales.
Continued improvement in production and quality control process
with a view to reduce costs.
Accident free work by exercising established safety practices
Advices foreman in material handling on stocking, mixing and
transporting of raw materials for production
Undertake testing of raw materials in process material and finished
product as per BIS standard.
Prepare MIS (Management Information System) on production.
Report to the General Manager s Process controlled to achieve
quality as per norm.
Optimization of plant in the firm. Maintaining the quality of the
product as per norms fixed by the management.
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Give authority among the workers to check the quality of the
products
Quality assurance should be done periodically / Advices every
employees to maintain the quality throughout the process .
3.5 Marketing Department
Marketing deals with identifying and meeting human and social needs.
The aim of the marketing department is to meet the needs of the
customers ' profitability. Marketing deals with customer value and
satisfaction. The very aim of marketing is to attract new customers by
promising superior value and keep current customers by delivering
satisfaction. The marketing department of Duroflex Private Limited has
mainly functions which include;
Identifying the needs of the customers
Ensure the supply of the product corresponding to its demand
Distribution of its product ti Its distributors
Providing warehousing and transportation facilities
Conducting market research
Meeting the sales target
Grievance handling
Adopting new methods to meet the competit ion
Providing pricing strategy
Sales promotional activities
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3.5.1 Department Structure
Fig 3.7: Department Structure
CEO
GM
Marketing Executive
Distributors
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3.5.2 Distribution Channel
Duroflex has a direct distribution channel. It supplies finished products
from factory to its distributors directly. Then it is the distributors who
provide the products to the dealers of the com pany. The dealers may
include the wholesalers and the retailers. There are no middle men.
Fig 3.8: Distribution Channel
The company has 22 showrooms oil over India. The location ere
Alleppey, Trivandrum, Calicut, Cochin, Trissur. Kannur, Goa,
Tirunelveli, Hyderabad, Hubli, Bangalore, Hosur, Mysore, Trichy,
Coimbatore, Madurai, Chennai, Vijayawada, Mangalore, Kolkata,
New Delhi and Vishakapattanam.
Factory
Distributors
Wholesalers
Dealers
Customers
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3.5.3 Sales and Demand
Sales of the company are increasing day by day. In 2004 the sales were
Rs.39 crorcs. In 2005 it was 44 crores and in 2006 it was 55 crores and
in 2007 it shoots up to 60 crores and again reaches abov e 50 crores in
2008 and 2009. The demand for the product is always higher than the
supply. Particularly in the off seasons and in festival days l ike Onam,
Christmas etc. the demand shoots up like anything. In order to meet the
demand for the customers the company decides on the amount of
production based on the market survey and the feedback collected from
the dealers. It is the dealers who gives the information regarding the
demand for the product and to what extend the production to be
increased to meet the demand.
3.5.4 Pricing Strategies
Duroflex Pvt. Ltd follows the cost plus pricing mechanism. The pricing
range starts from Rs. 1900. The quality of the product doesn’t vary as
the price changes. All the product s are of the same quality. The p rice of
the product changes on the basis of the content of the Poly Urethane
Form (PU Form) in the mattress. When the thickness of the PU Form
increases the price of the product increases. The price of the latex which
used as the raw material or the manufacturing pro cess fluctuates rapidly.
The company tries to make the price of the product constant even if
there is huge variation of the cost of the raw material. The company is
following the ‘single price policy’ which means there is no
discrimination among the different class of people. This pricing policy
doesn’t find favor with quality buyers who feel that they should have
been charged much lower price than the small lot purchases, As
Duroflex Is highly reputed company in the coir mattress Industry, the
competitors pricing strategy has no influence in the company’s pricing
policy.
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3.5.5 Advertisement
Advertisement is one of the main promotional activities that is to be
done In order to Increase the market share and to meet the competition
in the Industry. In every annual budget of Duroflex Pvt. Ltd the
company set apart around 8% of its profit for the advertisement purpose.
The company conducts the get together of its main distributors and
dealers in order to collect the feedback. It is on the basis of this
information; the company decides the amount that is to be reserve for
the advertisement purpose. The company is not directly involved in the
advertisement purpose. And agency called JELLITTA is doing the
promotional activit ies on behalf of the company. This agency has
decided the punch l ine for the Duroflex mattress “ brings romantic in
you”. The adver t ising methods are as follows
1. T.V advertisement
2. Display Board
3. Press advertisement
4. Brochures, catalogues and leaflets
5. Personal gifts
6. Goodwill gifts , calendars and diaries
7. Exhibition.
3.5.6 Sales Promotion
Duroflex Pvt. Ltd is doing a lot of sales promotion activities. The
company conduct meeting of all the main distributors once in three
months and collect the feedback regarding the satisfaction of the
customer and also about the moving item. They also conduct get
together of all the dealers of the company once in a year. As the
distributors. As the distributors and the dealers are more close to the
customers, they will be able to collect direct feedback from them. In
these meeting the company provides compliments for those dealers who
have made higher sales. This will encourage them to work more
effectively and efficiently to increase the sale of the company. In order
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to increase the sales of the company, i t also provide free offers like
pillows and bed sheets in the off seasons and fe stival days. The company
also provides scratch and win offer, lucky coupon etc. as part of sales
promotional activities.
3.5.7 Warehousing
Duroflex Pvt. Ltd has a well-established warehousing facility. The
company has mainly five distributors around Kerala which include
Trivandrum, Cochin, Alleppey, Calicut and Trichur. In all these
distribution centers there is corresponding warehousing facili ty which is
known as “Duroflex depots” In these depots a large volume of products
can be stores safely. From these warehouses the products are supplied to
the dealers for the sales.
3.5.8 Market Research:
Duroflex Pvt. Ltd. Mostly conducts the market research in order to
identify the market share of the company and to ensure that the company
fulfills the need of the customer. The market research for the company is
mainly done by the Coir Board Association and also by the Rubberized
Association. On the basis of research conduct by these associa tions
strategic decisions are made on how to face the competition and how to
increase the market share. Market research involves:
1. Finding the competitors strategy
2. Analyzing new trend in the market
3. Movement of the product
4. Policies to be adopted
5. Identify changes in the market
3.5.9 Market Share Analysis
Duroflex Pvt. Ltd. Does the market share analysis by conducting the
market research. Til l 2008 the market share of the company in South
India is 20%. Now it increased.
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3.6 Purchase Department
The main function of the purchase manager is to purchase raw materials.
According to the company the raw material should be kept at a quanti ty
required for twenty days of production. Whenever the stores fall below
the quantity, the store keeper informs it to the purchase manager.
Purchase manager prepares a -purchase note and forward it to the Factory
Manager. Factory Manager forwards i t to General Manager for fresh
procurement of materials.
3.6.1 Department Structure
Fig 3.9: Department Structure
CEO
GM
Factory Manager
Purchase Manager
Store Keeper
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3.6.2 Evaluation of Suppliers and Contractors
1. All suppliers mid subcontractors used by the company shall be
evaluated.
2. All suppliers and subcontractors who are on the appro ved list of
DLA as on 1 s t February 2005 continue on the AVL.
3. All new suppliers and subcontractors are required to fill supplier/
subcontractor assessment form. Based on the assessment forms, the
suppliers/subcontractor assessment committee (SAS) consisting of
Managing Director, CEO, Factory Manager, shall assess and initially
approve the supplier/subcontractors. The criteria for approval of
supplier/subcontractors shall be the supplier/subcontractors standing
in the relevant business, financial background and track record. Upon
Initial approval by SAC a trial order is placed on the new supplier,
4. Upon satisfactory execution of the trial order, the purchase in
charge finally approves the new vendor for inclusion in AVL.
5. I However, when II has not been possible to obtain the assessment
form from the available Information. SAC evaluates them after filling
the assessment form from the knowledge of the
supplier/subcont ractor. 'The criteria for approval of these vendors
would be the same as for the other vendor.
6. Upon final approval, the approved supplier/subcontractors shall be
included in the approved vendors list (AVL).The approved vendors
list (AVL) shall be updated periodically at the discretion of purchase
in charge. The AVL may be maintained in alphabetic or any other
sequence for each Item purchased for easy reference. The Purchase in
charge is responsible for preparation and updating the AVL. Copies
of AVL shall be available to the Accounts Manager
7. The AVL is reviewed once every year in May by SAC to evaluate
the vendors
8. Vendors dropped from the AVL may reass ess and approved as per
the normal procedure after a gap of not less than one year.
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Purchase Functions:
Source identification:
Source identification involves the identification of suppliers from which
purchase are to be made.
Source selection:
Source selection involves selecting the best supplier from different
suppliers, which is based on desired quali ty, quantity, price, service etc.
Vendor rating:
This responsibility l ies with Duroflex head office. Vendor rating is done
on the basis of product, price of the materials and the reports from the
production department in the case of latex or chemic als.
Receipt of material:
Materials are collected by the receipt store and the details will be given
to the section for inspection. Number of items passed, rejected and the
reason for rejection if any will be specified. Receipts store will then
prepare materials receipt report and then sent it to the concerned
sections i .e.; purchase and accounts .The original will be retained by the
receipt store.
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Classification Of Material
The materials used in Duroflex are broadly classified as:
Raw Materials :
Latex, coir rubber chemicals, cloths and qualified fabrics, PU forms and
threads.
General Engineering Items :
Electrical items, Mechanical items, spare parts and capital item tools.
Stationary Items and Furniture :
Office equipments, papers & bill book, cleaning products.
Purchase Procedure
1. Requisition
The power of approving material requisitions is with Duroflex
headquarters.
2. Purchase Proposal :
After purchase requisition has been approved by the head office, the
order is placed.
3. Purchase order:
After fixing the right supplier, purchase order is prepared and placed
with proposed party. The order rate, quantity, delivery schedule and
terms of payment will be mentioned.
4. Vendor rating:
The responsibility lies with the Duroflex head office. Vendor rating is
done on the basis of product, price of the material and reports from the
production department in the case of latex or chemicals.
6. Receipt of materials :
Materials are collected by the receipt store and the details will be given
to the section for inspection. Number of items passed and reason for
Organizational Study at Duroflex Pvt. Ltd.
Marthoma College of Management and Technology, Perumbavoor Page No. 76
rejection if any will be specified. Receipts store will then prepare
materials receipt report to be sent to the concerned section i .e.; purchase
and accounts. Original copy will be retained by the receipt store.
3.6.3 Vendor Rating
Raw materials are purchased from the approved vendor list. Approved
vendors list is prepared by analyzing the performance of supplier by a
method called vendor rating. Duroflex Private Limited has an approved
number of suppliers list for the raw materials. For the new supplier of
the raw materials, the company checks the quality and the rate of
materials. If the supplier ensures the minimum qualify and feasible rate
for the material, they will be included in the permanent suppliers list.
In Duroflex Private Limited. Vendor rating is measured by:
1) MAXIMUM POINT FOR THE QUALITY RATING IS 35: - The
factor is worked out as the quali ty accepted by the quanti ty supplied,
multiplied by 35.
2) MAXIMUM POINT FOR THE DELIVERY RATING IS 30: - The
factor is worked out as the number of the days allowed for the supply
divided by the number of the days actually taken for the supply
multiplied by 30
3) MAXIMUM POINT FOR THE PRICE RATING IS 20: - The factor
1.4 worked for as the lowest price quoted by the supplier, divided by
the price at which supply was procured multiplied by 20.
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Table 3.5: Vendor Rating
Vendor Rating Actions To Be Performed
Between 75 and 90 Continue the vendor in the approved
vendors l ist (AVL)
Above 70 Send a congratulatory message to
motivate the vendor
Between 50 and 60 Discuss personally with the vendor
regarding improvement
Below 50 Stop business with the vendor
Organizational Study at Duroflex Pvt. Ltd.
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CHAPTER IV
SWOT ANALYSIS
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4.1 Strengths:
1. Duroflex mattresses private limited produce quali ty product.
2. ISO 9001:2000 certification
3. The relation between the labors and the management is fair
4. Easy and quick availability of raw materials.
5. Good relation between dealers and distributors
6. Company produces products at varying price ranges
7. Duroflex has well developed corporate strategy.
8. Good financial management that exist in the organization.
9. Company following leadership through dedication and
coordination that encourage employees of the organization to work
towards their organizational goal.
10. The employees are very efficient.
11. Presence in international market.
12. Technology which supports maximum utilization of resources
13. Duroflex product had acquired wide market acceptance and
customer performances.
14. No trade union problems
15. Production wastage is less
16. Duroflex mattress division has lot of product varieties and price
ranges.
17. In the company there does exist a cordial relationship between
employees and top level management and among dealers and
distributors.
18. Through effective marketing Duroflex products could have
acquired wide market acceptance & customer preference wi thin a
short period of being established.
19. Duroflex has well developed corporate strategy; this is one of
their major strength.
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20. Style of leadership that the company follows is Leadership
through dedication and coordination. That encourages employees of
the organization to work towards their organizational goals.
21. The strength of the company lies with the quality of their
product, wide range of products is capable to challenge variable
environment conditions, goodwill and customer service, technica l
advice marketing intelligence, wide network and interaction with
customers.
22. Effective management system is one of their strength.
23. Ability of the top level management to manage strategic changes.
24. Good financial management system that is existi ng in the
organization.
4.2 Weaknesses:
1. The main weakness is product price is high compared to other
competitors.
2. Duroflex has just entered in to North Indian market.
Transportation from South India to other market is a big burden they
are facing in the market.
3. Competition from unbranded products
4. Volatile nature of the raw material prices
5. Not utilizing the maximum production capacity
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4.3 Opportunities
1. The environment friendly and inexhaustible nature of coir product
can find markets in further national as well as international markets
2. Duroflex is producing high quality products
3. Duroflex mattresses demand is higher.
4. Duroflex Private Limited introduced variety of products in to the
market
5. Duroflex Private Limited North Indian market which covers half of
the population of India of the population of India is not yet tapped.
6. The company can enter in to coir/jute biodegradable geo textiles at
relatively low cost.
4.4 Threats
1. Competition from the competitors and from unbranded
organizations. Similar companies like Kurl -on, Rubco, Sunidra etc.
2. Government policies
3. Shortage of fiber due to the death of coconut trees due to the
diseases and also the fluctuating price of rubber latex.
4. Duroflex Division has very high regional and domestic
Competition from other companies like Kurl -On , RUBCO and
Sunidra mattress.
5. Competition in the market is increasing day by day because of lot
of unauthorized companies in the market. They are products of low
quality at less price and attracting small customers. This is the major
threat that company is facing in the market.
6. Each and every company is facing threats in the market because
customer's requirements are changing day by day.
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7. Change in the environmental factors can make influence in the
sales growth.
8. Taste of consumers are changing day by day.
9. Rising labour cost is another threat that each company faces today.
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CHAPTER V
FINDINGS AND SUGGESTIONS
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5.1 Findings:
The company is producing ecofriendly products :
Duroflex is manufacturing eco -friendly products, making sure that it
does not cause any kind of harm to the society. This had created is
subsequent effect regarding the goodwill of the company.
Company is located in a picturesque location
They are providing employment opportunity to the people in local
areas
Wages and salaries are fixed by the board
Political influences are not affecting the managerial
functions There is cordial relation existing between workers
and management:
Presence of good industrial relations with local unions
and there is greater co-operation between management and
employees.
Presence of good industrial relations with local unions and there
is a greater co-operation between management and employees.
Workers fear of loss of jobs and hence resist mod ernization of
plant.
Wage system is fair in Duroflex.
Workers health and safety are given prime importance.
Labour turnover is very low.
Trade union plays a vital role as bargaining agents. The
management is sometimes forced to accept unreasonable demands
made by the unions.
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5.2 Suggestions
Considerably within a short period of time being established Duroflex Division has
earned the reputation of being a leading manufacturer of rubberized coir mattress by
virtue of an enviable manufacturing infrastructure. As a result of efficient monitoring
and quality control at every stages of production, wastages and rejections are brought
down. Whatever be the orders, whatever lie the risk, whatever be the tasks Duroflex
will live up to the expectations of the people by providing a wide range of mattress and
other rubberized coir products, catering to diverse segment of the market, enforcing
strict quality measures and standards for its products .We can see Duroflex as non-
competent leader in the field of rubberized coir Mattress in the near future itself
1) Introducing New Product into the Market:
Duroflex Pvt. Ltd enjoys a very favorable position in the
market. The company can increase its market share by introducing
new products into the market. By launching variety products, the
customer can make their selection as per their wish, which will help
the company to increase the customer satisfaction.
2) Alternative Raw Material :
As the price of rubber and latex is increasing day by day, the
cost of production had shoot up. If the company is able to find out
new alternative for the raw material, without making any change in
the quality, the company will be able to decrease the cost of
production
3) Improvement in the Sales Promotional Activities:
By making more effective advertisement, the company will be
able to capture new customer and thereby increase the market share
4) Interconnecting All the Branches and Departments of the Company by MIS:
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If the organization is able to connect al l the branches and
department of the company by using Management Information
System, the various data and the information can be easi ly
communicated. This wil l enable the company to reduce the delay in
sharing the information
5)OnlineSales:
If the customers will be able to make the orders online, the company
wil l be able to increase the sales, mainly abroad. If the company
incorporates all the above said suggestions, the company will mark
its presence in the mattress industry by securing more than 50% of
the market.
6) In the present market Duroflex Mattress is facing overall demand
in the market, in order to tap market demand. Duroflex has to tap
their 100% utilization of existing machine capacity that they are not
yet fully tapped.
7) Duroflex has to adopt a strategy that would result in lowering the
production and distribution cost than that of its competitor to win the
market.
8) The company has to make strengthen their supply chain in other
states, in order to tap the target market.
9) The company has to take about the conveyance f acility to
employees.
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5.3`Conclusion
This is an organization study report which will help us to analyse the
functions of various departments in the Duroflex Pvt. Ltd. the study was
carried out through the functional areas like production, finance,
marketing and human resource. Both primary and secondary data are
collected for the study. The corporation of the faculty and the company
personnel also play a good role in the successful competition of the
project. The study helped to understand the good relationship between
the employees and the top management. It also helped to analyse the
various strength, weakness, opportunit ies and threats of the company.
The report also made few suggestions for the company, which will help
the organization to become more competent.
The core competencies of the organization is as follows:
1. Professional management
2. Effective leadership
3. Cordial relationship between employees and top management
4. The company has well established network in industry with sound
manufacturing and marketing experience.
5. The company has adequate resources available for expansion.
Organizational Study at Duroflex Pvt. Ltd.
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BIBILIOGRAPHY
Organizational Study at Duroflex Pvt. Ltd.
Marthoma College of Management and Technology, Perumbavoor Page No. 89
BIBLIOGRAPHY
1. Kothari C.R., Research Methodology, 2nd revised edition, New
Ag International (P) Ltd,2004 PP 10-60
2. Mamoria and Satish, Labour Welfare, Social Security and
Industrial Peac In India, 1st edition, Allahabad: Kitab Mahal
Publisher, 1983. PP 20-70
3. Annual Report, Duroflex.
4. Quality Manual, Duroflex
5. Company brochure and Prospectus, Duroflex.
WEBILIIOGRAPHY
Www.duroflexindia.in