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This organization study is carried out at KITEX Ltd, Kizhakkambalam, Aluva. The
organization study has been carried out to get an understanding of the structure and
functioning of the organization. The study was undertaken to get an exposure to the
functioning of different departments of the company. The study helps to interact with the
managers of different departments and to observe the workers at their work place and to
act together with them. The purpose of the study is to get a clear-cut idea about the
functioning of different departments of the company.
The study is confined to one month based on the primary data obtained from the
head of various departments, the middle level managers and supervisory staff. The study
covers in brief in the present position of the textile industry and the company. The study
is made by personally visiting the company at Kizhakkambalam.
The primary data have been collected by structured interview with the managers
and other personnel of the company. The information about manufacturing process has
been gathered by interacting with different personnel of the organization at various levels
Primary Objectives
Secondary Objective
The scope encompasses both geographical and conceptual boundaries. The study is useful
in accessing the quality and performance of the company. It will help to conduct a
detailed study on the structure of the functional areas of organization. It also helps to
identify the strength and weakness of the organisation and also helps to find out the area
where the organization should improve. The study also helps to familiarize the textile
industry and also ascertain the present position of the company.
The study is mainly on academic grounds. This study provides an opportunity to acquire
practical knowledge through personal study and observation. This study reveals some
positive and negative aspects of the enterprise. The feed back of students will provide the
company authorities to frame their policies and to frame effective program.
RESEARCH METHODOLOGY
The data’s are collected from two sources namely primary data’s and secondary data’s.
Primary Data
Secondary Data
It is collected from:
2. Annual Reports
3. Office Records
The study is done by personally visiting the company at Kizhakkambalam, Aluva. The
primary data have been collected by structured interview with General Manager, and
Managers of various departments and other personnel including supervisors, workers
etc… of the company. Information about manufacturing process has been collected by
observing the functioning of machines and equipments in the plant. The quality manual,
publications of government of India, ministry of textile, magazines, periodicals relating to
the textile industry, internet etc…. were a useful source of the secondary data.
INTRODUCTION
The Indian textile industry has a significant presence in the economy as well
as in the international textile economy. Its contribution to the Indian economy is
manifested in terms of its contribution to the industrial production, employment
generation and foreign exchange earnings. It contributes 20 % of industrial production, 9
% of excise collections, 18 % of employment in the industrial sector, nearly 20 % to the
countries total exports earning and 4 percent to the Gross Domestic Product.
In human history, past and present can never ignore the importance of textile
in a civilization decisively affecting its destinies, effectively changing its social scenario.
A brief but thoroughly researched features on Indian textile culture.
India has been well known for her textile goods since very ancient times. The
traditional textile industry of India was virtually decayed during the colonial regime.
However, the modern textile industry, however, made its real beginning in Bombay, in
1850s.The first cotton textile mill of Bombay was established in 1854 by a Parsi cotton
merchant then engaged in overseas and internal trade. Indeed, the vast majority of the
The first cotton mill in Ahmadabad, which was eventually to emerge as a rival
centre to Bombay, was established in 1861. The spread of the textile industry to
Ahmadabad was largely due to the Gujarati trading class.
The cotton textile industry made rapid progress in the second half of the
nineteenth century and by the end of the century there were 178 cotton textile mills; but
during the year 1900 the cotton textile industry was in bad state due to the great famine
and a number of mills of Bombay and Ahmadabad were to be closed down for long
periods.
Textile constitutes the single largest in India. The segment of the industry
during the year 2000-01 has been positive. The production of cotton declined from 156
lakh bales in 1999-2000 to 1.40 lakh bales during 2000-01.
Production of man- made fiber increased from 835 million kgs in 1999-
2000 to 904 million kgs during the year 2000-01 registering a growth of 8.26%. The
production of spun yarn increased to 3160 million kgs during 2000-01 from 3046 million
kgs during 1999-2000 registering a growth of 2.91% during the year 1999-2000
increasing from 894 million kgs to 920 million kgs.
Growth in the textile industry in the year 2003-2004 was Rs. 1609 billion.
And during 2004-2005 production of fabrics touched a peak of 45,378 million square
The cotton textile industry is reeling under manifold problems. The major
problems are the following;
SICKNESS
OBSOLESCENCE
GOVERNMENT REGULATIONS
The first cotton textiles mill was established in 1883 in Kallai near
Kozhikkode by P.S Santhappa Chettiyar and M. Guptan Namboothiripad, known as
Malabar Spinning and Weaving Mill. The commercial production was started in 1887.
Later in 1976 the mill was taken over by Government of Kerala and handled over to
Kerala state textiles corporation. The second mill presently called Parvathi Mills Ltd.was
The factory was gutted down due to fire in 1959 and spinning production
was completely stopped. The Government of Kerala purchased this unit as a result of
liquidation and public auction in 1972, with the modest start of these mills, the number of
cotton textile mill rose to 31. The government of Kerala has announced in state assembly
on March 29, 1994, its Willingness to start 5 more spinning mills, one each of Kazargod,
Kozhikkode, Thrissur, Kottayam and Malapuram along with the commissioning of
corporative spinning mill at Kareela Kulangara at Allepey with a spindle capacity of
6000 spindles.
There are 16 private mill in Kerala of which 14 are spinning mills and the rest
2 are composite mills. The national textile corporation has got under it, 4 spinning mills
and 1 composite mill. The corporate sector owns only 2 spinning mills. In Kerala the
Another welcome feature was that a 100% export oriented unit, Past Pin
India Ltd. Started commercial production at Palakkadu. These units are located at
Palakkadu near Tamilnadu border. Another corporative mill, Alleppey Corporative
spinning mill at Kayamkulam is yet to be commissioned. Out of the 31 mills in Kerala,
14 are private sector, 8 under National Textiles Corporation, 4 under Corporative Sector
and 5 under K.S.T.C.
The Anna-Kitex group is one of the leading induatrial group in the state of kerala
employing more than 12,500 personnel for the past 40 years. The group is engaged in the
manufacture of diverse products like garments, textiles, school bags, travel bags,
umbrellas, aluminum utensils, kitchen appliances, branded spices, curry powders and
ready to eat food which is marketed in the famous brands of kitex, Scooby-day, Anna
aluminium, chackson and saras. The Anna-Kitex group is a pioneer in the fashion
industry Anna Group, Where quality - the buzzword - has built success.
The Anna range of vessels and utensils are highly popular in the Middle East,
USA, Africa and Australia. The organization comes under Anna Group are as follows:
• Anna Aluminium Company
• Sara’s spices
• Kitex Ltd
• Kitex Garments
• Chackson
PRODUCT RANGE
Pressure Cooker
Thermal Cooker
Multi Steamer
Idly Cooker
Compact Idly cooker
Milk Cooker
Puttu Maker
Cooking Pot
Fry pan
Kettle
PRODUCT GALLERY
Lungies
• Executive
• Medium Super
• Medium
• Economy
Dhothies
Bed sheets
Following are the types of bed sheets
• Sweet dreams 50
• Sweet dreams 60
• Sweet dreams double sheet
• Duo/sd 60 bed sheet + 2 pillow covers
• Solitude double sheet
• Sweet dreams king knight
• Duplex / solitude bedsheets + 2 pillow covers
• Soft dreams king size + 2 pillow covers
• Sweet dreams DS + 2 pillow covers
Mull
• Economy
• Medium
Scoobee products
• School Bags
• +2 Bags
• College Bags
• Travel Bags
• Ladies Bag
SARA SPICES is the condiment producing unit of the Anna Group. It is involved
in the production and exporting of Curry powders, whole Spices, etc. for the past two
decades. Since its inception in the year 1976, Sara Spices have come a long way, tingling
the palates of gourmets the world over with its delicious range of Spices and Masala
powders.
Sara spices and curry powders are known for its high standard of quality and
hygiene and were won. Sara’s spices include Jeera, Cardamom, Ginger, Turmeric, Red
chilly and Coriander. A wide range of masala powders are available under this brand.
PRODUCT GALLERY
Saras Ready-To-Eat
Ready to cook gravies
At the highest standards of quality, Sara Whole Spices and Curry Powders have been
approved by :
• Food and Drug Administration (FDA) of USA.
• Agmark of India.
• Recognized by Spices Board of India.
Kitex Children’s Wear Ltd will commence knitting operations in February and will be
full commissioned by December 2008. KGL is the only company manufacturing
specification ‘222’ for children’s wear. This company also obtained A-Level certification
from World Wide Responsible Apparel Production (WRAP), which is a federation of 21
American apparel and footwear associations. Only two companies have achieved this
certification in India.
Kitex got ISI 9001:2000 in February 2007, they are committed to manufacture and
deliver quality.
Fabrics and processed fabrics as per customer specification efficiently in professional and
environment friendly manner, on time and at right cost with almost customer satisfaction
to become a world class organization through continuous improvement.
INNER GARMENTS
The company had ventured into a new business field of producing inner garments for
men and women under the brand name ADONIS and AGNA. They are selling their
products through their own distribution channel.
Address : Kizhakkambalam
Aluva
Ernakulam
Leadership,T
Policy strategy Quality, eam work
Customer
process and and TEI
people
MISSION
COMPETITORS
We find that the kitex faces competition from only few brands like;
• KKB
• Angel
• Jansons
• MCR
Majority of the customers were asking kitex lungies. It shows that kitex lungies
have good brand image. If we look at the competitors from only the lungies side
we can see the competitors are as follows;
• Angel
• Bombay dyeing
• Jansons
We find that the market share of kitex is far more than others if we compared with
other brands.
They are the leading manufacture with ISO 9001-2000 in South India of all
varieties of griege fabrics, yarn dyed fabrics, dobby and leno dobby fabrics made of
cotton, polyester cotton, cotton nylon, cotton flax, linen, cotton linen, cotton Lycia.
Mr. Jacob, the managing director of kitex Ltd has won several awards for his meritorious
contributions in the field of business. To mention a few;
• Kitex has won the TRANSWORLD TRADE FARE GOLD MEDAL in the year
1975.
• Kitex has awarded the UDYOG PATHRA Award by the Vice President of India
• A Memento was presented to Mr. Jacob in December 1992, for his valuable
contribution to the Evangelistic Convention held at Puthencruz.
• KRISTHU JAYANTHY award for the year 2000 was conferred to Mr. Jacob
during the 82nd ALL KERALA CATHOLIC CONGRESS for his noteworthy
contributions to the economy of Kerala.
• For the meritorious services of Mr. Jacob to the community, he was awarded by
Major Arch Bishop Mar VARKEY VITHAYATHIL in the year 2000, on behalf
of the most Gracious IGNATIUS MOOSA 1st PATRIARCH OF VATICAN.
Lungies
• Executive
Superior quality lungies available in various designs and colors.
• Medium Super
Comfortable lungies you would love to drape. Available in various designs and
colour combinations.
• Medium
Experience freedom and coolness with Medium range of lungies;comes to you in
warm colors and in various designs.
Dhothies
• Smartline
White single dhothy with streaks of either dark red or dark blue or dark green lines,
which can be worn equally at home and outdoors.
• Smartline Gold
Cream colour single dhothy with streaks of Gold Jerry lines for special occasions.
• Readywear
Plain white single dhothy you'll love to drape. The anywhere, anytime wear.
• Samrat
Pure cotton white double dhothy with lines in 5 different colours to choose from.
Bed sheets
Following are the types of bed sheets
• Sweet dreams 50
• Sweet dreams 60
• Sweet dreams double sheet
• Duo/sd 60 bed sheet + 2 pillow covers
• Solitude double sheet
• Sweet dreams king knight
• Duplex / solitude bedsheets + 2 pillow covers
• Soft dreams king size + 2 pillow covers
• Sweet dreams DS + 2 pillow covers
Mull
Scoobee products
• College bags
Features
• Made from imported Dineer Nylon for durability
• Shoulder strap cushion to prevent shoulder pain
• Soft padding and accupressure buds on the rear side to cushion your back
• Unique stitching using strong nylon threads
• Quality zip with zip guard to prevent water leaking into the bag
• Secret pocket to hold chocolate and money
• 15 different color combinations
• Special leak proof tiffin box pouch at attractive price
• Bags for college and travel purposes also available
Trawellday bags
The company has ventured into a new segment of bag production as TREWELLDAY
bags. This wide ranges of luggage and baggage products with latest trends
and design and is made from imported raw materials. The bags are priced premium
and has good market share. The price range is from Rs.650/- to Rs.3000/-. The range
includes
• Trolley bags
• Business bags
ADONIS a range of refined vests and briefs and AGNA a range of Bras and
Panties ensure seamless fit and finish. Both brands use specially processed fabric which
feels smooth and healthy even on the soft skin of newborns. It provides ample space for
stretching, bending and rigorous exercise without tearing.
• Kerala
• Tamilnadu.
• North America
• South America
• Western Europe
• Eastern Europe
• Eastern Asia
• Southeast Asia
• Middle East
LUNGIES
DHOTIES
BEDSHEETS
MULL
Kitex Ltd follows the line or military organizational structure. Managing Director is the
top level, other functional managers followed by him. The span of management in the
organization is narrow span. The main advantage of this type of control is that close
supervision, clear chain of command, and close control and fast communication between
subordinates and supervisors. The model of the organization design is mechanistic model.
The chairman and the managing director who are the representatives of the share
holders take the important decisions of the group concerns. They perform strategic
planning and policy making functions of kitex ltd. For their help General Manager, top
executives of the company management are appointed. General manager is responsible
for the smooth, efficient and productive functioning of the units from the production to
the marketing.
• Middle level : Graduation and above with experience in the relevant areas.(both
technical and managerial)
Page 33
ORGANISATION
Vic
e
Pr
esi
de
nt
General Manager
General Manager
Productio Store Finance Manager Personnel &
Asst.manager
Shift In Manager manager
charge Quality Purchase Finance
Office
Inspector Officer Manager
Assistant
The purchase department plays very important role in the company and it is
efficient in every vital factor concerning the manufacture quality, cost efficiency and
promote delivery of goods to customer’s service machines and tools at most favorable
terms consistent with maintaining the desired standard of quality. Purchasing is the most
important functions of materials management. At the moment an order is placed for the
purchase of material, a substantial part of the companies finance is committed, which
effects the cash flow position of the company.
MATERIALS PURCHASED
• Sizing chemicals
• Loom spares
• Packing materials
YARN
Before purchasing the yarn, the quality parameters are checked and getting
assurance from yarn suppliers such as count, strength, twist, imperfection level, CV % of
the count, CV % of the strength of the yarn. For checking or measuring the above
parameters, various equipments are available in the laboratory. The company purchasing
a quality yarn that is auto cone, auto spliced, electronically zero cleaned yarn for making
100 % dying standard quality fabric for export garments
GREIGE FABRIC
The buyers have their own standards for quality and the company has always
satisfied the requirements of the buyers. Even though the company followed a stated
quality policy a 4 Point System, from the Textile Distributors Associations, Inc USA and
American Textile Manufacturers Institute, Inc Newyork. The penalty or demerit points
are calculated according to the length of the defects as follows
Up to 3 1
Over 3 up to 6 2
Over 6 up to 9 3
Over 9 4
Remarks:-
• Any running defects more than 4 continuous yarn will cause the roll
METHODS OF GRADING
• First quality
Usually fabrics are graded “first” if the demerit points do not exceeds the
limits but the acceptance tolerance has to be confirmed to be the buyer. A piece is
grade first if the total penalty point does not exceed the total yardage of piece
A piece is graded “second” if the total penalty points exceed the total yardage of
the piece
• Manufacturing capacity
• Price quoted
• Terms of delivery
Managing Director
General Manager
Purchase Manager
1) Purchase Indent
2) Enquiry
3) Receiving Quotations
After receiving quotations, these are checked by the manager of purchase and finance
department prepares a comparative statement and is sent to the indenter.
Quotations are tabulated and the purchase department sends enquiries to the approved
vendors on the receipt of purchase indent. The vendors will send quotations.
5) Approval
File is returned to the purchase department and order is placed to the recommended party
(vendors).
Production Planning
(1)
Purchase
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Purchase (4) Department Inspection Report
(3) (11)
Invoice
Store (10)
Material (9)
Payment (13)
Production is the process by which raw materials and other inputs are converted
in to outputs. Among all functional areas of management, production is considered to be
crucial in any organization like Kitex Ltd. In Kitex Ltd, mainly the production of greige
clothes takes place under the production department. The production manager is known
as Weaving Master.
• Design of product
• Selection of location
General Manager
Manager Manager
Jobber Helper
Weaver
The production department or factory has installed capacity of 383 power looms.
100 % capacity is utilized for production; in addition to the power looms the company
has installed 22 modern looms. It is called Sulzer Looms.
It is imported from Switzerland. The advantage of Sulzer Looms are high aped
and more production than power Looms. It is fully automated and high quality of goods
produced and manpower is less. Width of the cloth produced by modern looms are more
than power looms
Ordinary power looms required two persons per loom. Two modern looms require
one person. That means 505 of labour expense can be saved by modern looms. The
ordinary looms are also in the process of automation and modernization. 75 % of
modernization work is completed.
The company never faced any raw material shortage. This is due to efficient
supply chain management, scientific estimation of raw material requirements and timely
procurement of raw materials. The purchase department plays active role in the effective
and timely procurement of raw materials. The total average consumption of 100 % yarn /
month
PRODUCTION PROGRAM
• Spinning
• Weaving
In spinning, the yarns of various counts are manufactured. Count is the measure of fines
of the yarn. The process of manufacturing the pure cotton greige cloth from this cotton
yarn is called weaving.
In Kitex Ltd, the weaving of cotton greige cloth is the major process. The basic
output of this unit is 100 % cotton greige cloth, which is the raw material of most of the
cotton textile industries. About 85% 0f the total sales of these units are from the sales of
lungies, mull, bed sheets, and dhoties prepared from this cotton greige cloth
PRODUCTION PROCESS
There is a lot of process should be given to cotton yarn before it undergoes the
process weaving and whole department is known weaving preparatory
• Warping
• Sizing
• Beam draw in
• Pirn winding
• Weaving
• Folding
• Recounting
• Grading
• Bailing
1. Warping
The yarn from spinning mills gets in the form of ones, copies etc… The warping
process consist in winding of a known number of warp threads of a definite length
parallel to each other on warping beam or weavers beam from the cones according to the
number of ends from particular quality there a limit for the number of ends to be taken in
a warping beam. It is known as creel capacity of warping machine. In Kitex Limited,
warping machine is made from Amrithalakshmi Machines Works, Mumbai. Its real
capacity is 564. Before taking a new quality in warping, we have to know about the
construction details of fabrics quality at least the total number of warp ends in the
particular quality. The speed of warping machine might be variable according to the
count of the yarn depending up on the kind of stock yarn and processing technique.
Warping may be done by the following three methods:
• Section warping
3.Beam Draw in
The warp from sized beam is first drawn through dropped wires, healds and
cycloths and then read dents according to the design to weave (plain/ twill, drill, stain,
weave etc…). these drawn beams are gaited or knotted in the loom for weaving. Trained
and experienced beam drawers do this work manually
4. Pirn winding
It is the process of winding gain on pirns for perception of weft yarn for
weaving. This yarn need not require sizing most often weft pirns for use in automatic
shuttle loom( power loom) for using looms equipped with a weft feeler, the weft pirns are
wound with a bottom bunch. Due to weft yarn winding the parameters of the pirns are
changed, the yarn quality improved to the estimation of dust, fluff and spinning faulbs.
5.Weaving
The method or process of interacting two yarns so that they cross each other at
right angles to produce fabrics. The warp threads length wise fabrics and filling threads
(weft and picks) run front side to side. The weaving looms may be classed in to two
groups that is looms are intermitted fabric formation and looms for continuous fabric
formation
The woven fabric cut down from the loom is again unwounded and checked the
quality by supervision of trained checkers and re checkers before folding and bailing. The
checking inspection is as per American 4 Point System.
6.Folding
7.Recounting
The meter length is again recounted and assured the fabric and sealed and gone
for bailing
8.Grading / Sorting
-Checking all technical conditions stipulated for fabrics from fluff, thread ends
-Knots and tags putting a speed mark with a pen on the ends of the fabric piece
indicating the fabric style, measure and grade
9.Bailing
The graded or sorted fabrics packed in bailed condition under the supervision
on the basis of quality. The standard packing in one ball contains 1000 meters. For
bailing, the company has a bailing press which is in good working condition
POLLUTION CONTROL
The company doesn’t have any pollutant products or bye products. The only
pollutant may be cotton particles that may get spread in the loom shed. To prevent this,
the factory is having sufficient humidifier to help the cotton particles settle on the ground.
In addition to this, the factory and premises are cleaned on a regular basis.
The sound of weaving mills is also causes pollution. The company provides sound
deafening materials to the workers to protect their ear drums.
Yarn
1
Despatch
Checking
st Piece
Beam
Knotting
Sizing
Draw in UnPacking
Folding
Winding Greige
Recounting
Weaving
Grading
Cutting
Cloth
QUALITY CONTROL DEPARTMENT
The company is committed to manufacture and deliver quality greige fabrics and
processed fabrics as per the customer specification, effectively in a professional and
environmental friendly manner, on time and the right cost with at most customer
satisfaction to become a world class organization through continual improvement
3. Uniform quality and reliability of product help in increased sales turn over
Total Quality Management (TQM) journey started at ANNA Group on 6th June 2005.It is
a long journey towards success. Quality means 100% quality in attitude, speech, people,
work, discipline, surroundings, product etc.
• ISO – 9001
• CUTOMER SATISFACTION
• TRAINING
• EMPLOYEE WELFARE
• SOCIETY WELFARE
• POLICY DEPARTMENT
• PROCESS IMPROVEMENT
1) Improve productivity
2) Save time
• Ethics
• Trust
• Recognition
• Leadership
• Communication
5S OF HOUSE KEEPING
SEIRI - sorting
SEITON - systemizing
SEISO - shining
SEIKETSU - standardizing
Quality Objectives
INSPECTION
2. Centralized inspection
3. Sampling inspection
It is justified when lot size is very high. The sampling method and
sampling size are important in case of sampling inspection.
General Manager
Quality control
Manager
Assistant Assistant
Inspecor Inspecor
(Yarn) (spare)
Finance is the life blood of business. Finance department consists of all the
managerial activities of raising funds and effective utilization. Finance department lies in
decision making area of investment, finance and dividend. Recruitment and promotion in
production are the activities of H.R Department. But it requires the payment of wages,
salaries and other benefits; these are done by finance department. Finance manager is the
head of finance in Kitex. He decides when and where to acquire funds to meet firms
investment needs. He should determine the proposition of equity debt. The finance
department should strive for obtaining the optimum capital structure for the organization.
6. Raising short term loan or credit from bank and other financial institutions
11. Preparing and filling of quarterly and financial income tax returns
• Balance sheet
• Cost sheet
• Comparative statements
c) Financial analysis
g) Capital budgeting
AUDIT OF ACCOUNTS
• Internal audit
• Statutory audit
Chairman &
Managing Director
General Manager
Kristu JayantiAssistant
College of Management
Manager
Page 59
Executive Cashier Executive Executive
(Bank) ( Data Entry) (Tax)
Assistant Manager
Executiv
e
(Central
Exise)
MARKETING DEPARTMENT
Marketing is the activity through which a company is able to generate the revenue for
the functioning of the organization. Kitex Ltd. has got a very good marketing department
controlled by efficient and dynamic marketing manager. Marketing manager reports to
General Manager and Managing Director. Marketing department is divided in to three
such as Marketing (greige fabric), Marketing (finished fabric / bags) and Advertising and
Sales Promotion. Under each section, Assistant Managers, Marketing Executives, Sales
Executives and Sales are there to assist him
The company markets its processed products like lungies, dhoties, bed sheets and
mulls etc… mainly through dealers. Almost all Kitex products are available at the dealer
The company is having 1000’s dealers spread all over Kerala. In greige market,
garment manufactures all 54rrffover India use various textile sorts manufactured by the
company. The company is selling their greige fabrics as such to various garment
exporters to Mumbai, Bangalore, Delhi, Chennai, Calcutta, Ahmadabad etc… 75 % of
the sale is done through authorized agents on commission basis and balance is through
Direct Marketing. The garments manufactured by the group under the brand name Kitex
are accepted all over the world.
Marketing manager is the one who decides the marketing strategies for every major
decision, which effects marketing. But while making some strategic and important
decisions, approval of the Managing Director is required
After collecting the orders, Marketing Managers forward their order to Production
Department. Marketing Manager and Production Manager sits together and decides the
production plan
MARKETING POLICY
This company has a strategic marketing policy. The company mainly targets its
customers and promotional activities are based on the above aspects. The company
doesn’t entertain any middle man. They deal directly with their dealers. The company is
following a hierarchical channel of distribution.
Company
Dealers
Consumers
Kitex has a dealers network of more than 2500 dealers spread all over Kerala.
The sales of customer goods are concentrated on Kerala, Tamilnadu, and Karnataka. In
addition the company has direct outlets in Kerala and Tamilnadu. Dealership is allotted
only after assessing the credit worthiness, efficiency, and the products are delivered
through the van of the company either at the dealers goes down or at the dealer’s show
room. The company is selling their greige fabrics as such to various garment exporters to
Mumbai, Bangalore, Delhi, Chennai, Calcutta etc. 75 % of the sales is done through
authorized agents on commission basis and balance is through direct marketing. The
garments manufactured by the group under the brand name KITEX are accepted all over
the world.
Marketing strategies
The marketing department is one of the efficient and effective departments in kitex. This
department is always vigilant about its environment and very conscious about the market
potential, major competitor’s strategies, weaknesses etc. maintaining the efficiency and
effectiveness the top management appointed a General Manager for marketing
department. The present GM (marketing) is an experienced management professional.
MCR
Janson
Angel
KKB
UBS
Ramraj
Kitex products achieved the maximum market share in the period if festivals like Onam,
Christmas, Ramzan and Vishu. In normal case, profit margins of the products are 15% to
20%.In the case of technical competence kitex introduced new automatic waving suzior
looms, which are imported from Switzerland. The only competitor having this type of
technology is Jnason. The quality , usage and brand image of kitex products in the market
is very high.
Market segmentation
Marketing consist of buyers of different in one or more aspects. They may differ in their
wants, purchasing power and geographical location, buying attitudes and buying
practices. Any one of the variables can be used to segment a market. The market
segmentation procedure of Kitex mainly focuses on survey.
The marketing manager conducts the survey process. The staff of R&D department is
responsible for it. It includes informal interview, with focus group of consumers to gain
insight in to their motivation, attitude and behavior using their findings, the researcher
prepares a formal questionnaire which is administered to sample of customer to collect
data on:
SHOW ROOMS
The company has show room sales in addition to sales to its authorized dealers
and franchisees. There are about 20 show rooms spreaded all over the major towns in
kerala.
CUSTOMERS
The companies customers are average and above average income earners.
Agriculturalists constitute a large portion of the customers
• Prestige pricing
• Penetration pricing
• Price skimming
• Price lining
• Dual pricing
CHANNELS OF DISTRIBUTION
Producer Consumer
Producer Retailer
Consumer
PRICE MIX
Price is one of the important elements of marketing mix which has bearing as a company
and its corporate. A well formulated pricing policy provides guidelines to the marketing
manager to enroll appropriate pricing decision. The company follows skim pricing. The
company’s products are premium priced.
Kitex Ltd follows stabilized pricing policy. The company has maintained stable price for
a long period. Price of the product depends upon the price of the yarn. The reputation of
Place mix
The unit of kitex ltd is located in Kizhakkambalam, Aluva. The company uses their own
distribution channel for supply. The orders were taken by the agents and according to the
order supply will be done on the time suggested by the dealer. The company also sell
through their own factory outlets.
Promotion mix
Advertisement
The company mainly uses advertisement to promote its products. The basic function of
advertisement is to influence and motivate people to buy products. Various advertisement
agencies are called up and given brief idea about what to advertise and the agencies
prepare a pre-demonstration. After submitting the copy of the same to the company the
advertisement manager, marketing manager, general manager marketing and general
manager direct analyze there and select the best among them and entrust the agencies for
drawing up and covering out with their advertisement plan. Then comes the media
selection. The kitex normally chooses the following media:
TV
Video
Closed Circuit
Print Media
Ad Agency
PRODUCTIO
N
DEALERS SHOWROO
M
CUSTOMER
S
General Manager
Manager
Manager Manager (Processed
(Advertisement &
Fabrics)
Sales Promotion)
Kitex Ltd has a good HR Department and it maintains good relations with the employees.
This helped the company to achieve tremendous growth. All the employees’ related
activities are managed by this department.
The company employees over 800 workers and does not have any trade union problems.
The workers and management sit across the table and negotiate their demands and rights.
The company has an efficient administrative department which carried out the several
functions.
FUNCTIONS
Recruitment
Recruitment is a process of searching for and obtaining applicants for jobs from
among whom the right candidate can be selected. Recruitment process is done after the
job analysis and job design which specifies the taste and duties of job and qualification
expected from the respective job holders.
Planning
Strategy Development
Searching
Screening
Evaluation and control
In Kitex Ltd, internal recruitment also takes place. This includes present
employees, employee referrals, formal employees and former applicants.
For the recruitment of office staff and managerial personnel, external sources like
advertisement in news papers, employees weekly etc are used. Other sources are
advertisement in company website, employee references and resumes of the candidates
which the company passes. While selecting the weaver trainees and helpers, qualification
along with sufficient experience in the industry is also required. They can directly appear
for interview. Some times selection order is on the basis of the recommendation from the
known person. For skilled jobs like fitter, electrician, instrument technician, jobber, etc
information is passed through advertisement. For this, experience in respective field is
good advantage.
Selection procedure
Employees are given proper training and development after they have been
recruited, selected and induced. The company gives training to develop and increase
skills for performing a specific job for each trainee. The company also assures education
through companies own community college to increase general knowledge and to
understand total environment.
Performance Appraisal
Employee remuneration
• Incentives
EPF, ESI, Medi-claim insurance and maternity benefit also provided for
employees
Leave Rules
Earned leave is calculated at one leave per 20 days and it will be less than 15 days
per year. In addition to casual leave, 16 annual holidays
Shifts
Company has its own ambulance for emergency use for both workers and public
medical facility in the organization is also good
Water coolers are installed in the company where ever necessary for the
employees. This company is very cautious about the health of their employees who
faithfully work for their company. Employees strictly agreed that drinking water provided
by the organization is very good
I. Accident Benefit
If the employee, who is covered under the Employee State Insurance Scheme
(ESI), during the works, suffered with an accident he will be paid as per ESI scheme. If
the employee is not covered under ESI, the company will meet all expenses and grant
him special leave in case of any accident. A group accident policy is also taken by the
company by which all the employees will be benefited.
III. Canteen
The company has separate canteen for male and female employees. For drinking
water, coolers are also installed in the company wherever necessary.
IV. Gratuity
Kitex Ltd maintains a gratuity scheme for its employees who have completed 5
years of experience including training period.
V. Provident Fund
The company contributes 12.5% in the employee P.F scheme.
i. Attendance Allowance
ii. Uniform Allowance
iii. Children’s education allowance
iv. Free tea and coffee for office staff
Hostel
In Kitex Ltd, organization provides separate hostel facilities for the ladies and
gents. It includes canteen, accommodation, and entertainment facility. For the purpose of
administration of ladies hostel, organization has appointed a hostel warden and two
assistant warden and hostel staff. In every weekend the P&A manager or personnel
officer visits and check the facilities and function of the hostel. Also the department
conducts performance appraisal and annual day celebration for the employees.
Security Department
For the security and discipline of Kitex Ltd, the organization provides a security
department under the P & A Department. This includes a security officer and staff. The
main function of the security officer is to check the baggage and carriers coming into the
organization and the products delivered from the packing section. The security
department marks in the register the quantity of the product, place, time etc.
Trade Unionism
There are companies which are non- unionized. Kitex Ltd is such a company. In
Kerala we can see a lot of trade unions and problems created by them. In this case this is
Industrial Relation
Promotion
Transfer
Transfer involves a change in the job (accompanied by the change in the place of
the job) of an employee without change in responsibilities or remuneration
HRD SEVICES
This is usually done by three ways like, improving the knowledge of employees and
creating the right attitude in the mind of them. For this they will be given training and
development programmes.
2. Culture building
It is having a great importance, as right culture will create employee satisfaction. Every
employee of KITEX LIMITED loves to work in the organization because of good g
culture prevailing in the organization. Culture mainly indicates the good attitude towards
employees and vice versa.
3. Motivation building
Enhancing the motivation of employees and thus enabling the organization to achieve
its goals is another inevitable function of this department. The employees are being
motivated by providing various monetary benefits and also morale boost like promotion
etc. Industrial relations are yet another major area coming under HRD department. And
also good relationships are maintained within the organization.
The employees other than the office and plant workers come under the piece rate
system. 80 % of the workers are under the system in which the payment is made
according to the quality produced on monthly basis. Salary is paid along with payment
slip which contains the details of the pay. A copy of the pay slip is signed by the
employee. When he recollects the salary, it will be filled on this department
Standing Orders
Fringe benefits
1. Sorting
2. Systemizing
3. Shining
• Inspect and clean the supply lines, godowns, scrap yards and gardens
• Identify the root cause of loud noise vibration heat build up in equipment
and take medical action
4. Standardizing
• Develop standards
5. Self disciplines
6. Compensation benefits
7. Group insurance
General
Manager
Manager Manager(Adm)
(Personnel
)
Securi
Welfare Front Time Sten ty
Officer Office Officer ogra Chief
Executive pher
Security
Office Office Asset Guards
Asst
Constructio
n Workers
Cook Helper
Cook Helpe
r
• Ensures the sufficient quantity of stock that there may be uninterrupted flow of
production.
General Manager
Store Manager
Recording of Stock
Perpetual stock records are kept for raw materials, spares, work in progress and
finished goods. These records are periodically reconciled with accounting records. This is
a periodical reporting of storage of excess. If differences are there, they are investigated
and necessary adjustments are made in the final accounting records and store ledger
accounts maintained in the stores. The store department is fully computerized. A special
software package is designed and installed for inventory management in the stores. All
the receipts and issues are recorded in the computer ABC analysis of inventory is done on
regular basis of physical stock check once in every month by the store department and
internal auditors
If the particular item is not available with the stores or the same has reached there
ordering level, the stores department informs the purchase department and issues
purchase requisition.
STORE KEEPING
The quantity, quality and other specifications of the item issued are recorded in
the store ledger control account prepared and maintained by the stores, issue and usage of
cotton yarn and packing materials are recorded in stores ledger control account even
though they are not stored in the stores.
Special care is given to materials to free them from deteriorating in quality due to
rust, fungal attack etc with the help of eco friendly chemicals. All stocks of raw materials
and spare parts are stored in assigned areas only. Access to these areas is restricted. A
record is maintained for the insurance policies are duly compiled with. Perpetual stock
records are kept for races materials, stores, spares, work-in-progress and finished goods.
These records are periodically reconciled with accounting records.
In Kite the major technique used in controlling the inventories is ABC analysis.
Also VED and EOQ technique, Turn over ratio is calculated… It is done regularly. All
the stocks are kept in assigned areas and the access to these areas are strictly restricted. It
is designed in such a manner that production is not interrupted in any way.
Production Control
Stock
Stock Order
Reservation
Store
Selecti
Stores on
Accoun
ts
Work
Selectio
Order
n
Material Receiving
report
Material
Stock Delivery
Report Stores
Receivi
Kristu Jayanti CollegeStores
of Management ng
Page 87 Issuing Section
Section
EXIM DEPARTMENT
EXPORT
IMPORT
• Contract finalization
• Negotiation of the ocean freight with various and finalize shipping lines to
be used
ENVIRONMENTAL POLICY
GENERAL
As a part of the organizations contribution towards the society, the Kitex Ltd provides:
SWOT ANALYSIS
Strength
6. No trade union
7. ISO certification
Weakness
2. Untrained employees.
Opportunities
Threats
4. Implementation of technology
To day’s life, people are more concentrating quality and price. Most of the
customer’s belonging to middle class family. Majority of the people living in our country
are from middle income group. In my understanding, my major findings are
• There is no trade union exist in the organisation because of the good relationship
between employees and management.
• Can venture into more and more textile products as the distribution channel is
strong
Suggestions
• Increase the promotional budget in the form of scratch & win , Buy one Get one
in the Dhoti & inner wear segment to increase the market share.
CONCLUSION
The study was conducted at Kitex Ltd, Kizhakkambalam, Alwaye. The project work
titled ‘organizational study’ was an attempt to study about the organizational structure
and the department functions and to make some recommendations and suggestions for the
improvement and development and smooth functioning of the organization. The data with
regarded to the study collected from the Kitex helps to understand the process of
production of textiles. Each department in Kitex was analyzed by me and I came to know
that various processes are controlled and monitored under skilled supervision and
hardworking workers.
The study has given information about the manufacturing process, different
product, organizational structure of the company, departmental functions and gives a
REFERANCE MATERIAL
Marketing
Human resource
Finance
•Magazines
Textile India
Textile review
Books referred
• Principles of Marketing – Philip Kotler & Gary Amstrong 12th edition 2008, page
182-332
www.annaaluminium.com
www.google.com
www.textileindustry .com
www.kitexltd.net