AN ORGANIZATIONAL STUDY OF M/s FORTUNE ELASTOMERS PVT LTD

Organization study report submitted in partial fulfillment of the requirements for the MBA (full time) Degree of the Kerala University Fisheries and Ocean Studies

Submitted By

SHANUJ. A.V SME -2012-21-32

MBA -2012

KERALA UNIVERSITY OF FISHERIES AND OCEAN STUDIESPanangad, Kochi-682506

JUNE 2013

DECLARATION

I hereby declare that the organization study reportof M/s FORTUNE ELASTOMERS PVT LTD is a record of bona-fide work done by me in M/s FORTUNE ELASTOMERS PVT.LTD during the period of one month under the supervision of Mr. V. ABDUL RAZAK, chairman, VKC division 2 and Ms. SAHILA,Asst. Manager HR &AdministrationofM/s FORTUNE ELASTOMERS PVT LTD and Prof Dr. AMBILI KUMAR, School and management and entrepreneurship, Kerala University of Fisheries and Ocean Studies, and that no part of this report has formed the basis for award of any degree, Diploma, Associate ship, Fellowship, or any other similar title or recognition in any other institution

Place:PANANGAD SHANUJ. AVDate: 07/06/2013

ACKNOWLEDGEMENT

I owe a great many thanks to a great many people who helped and supported me in conducting the organization study at M/S FORTUNE ELASTOMERS PVT LTD.My deepest thanks to Prof. Dr.Ambilikumar, faculty member,KUFOS for guiding me with attention and care.My deep sense of gratitude to Limited.for his support and guidance.Also I extent my thanksto Mr. V ABDUL RAZAK ,chairman, VKC division 2 and Ms.P Sahila,Asst.manager HR and administration,M/S FORTUNE ELASTOMERS PVT LTDand appreciation to the helpful people in the company for their support in doing the project.

SHANUJ AV

Table of Contents

Sl. No.TitlePage

1Industrial Profile4

2Company Profile13

3Departmentation20

4Swot Analysis45

5Conclusion48

6Bibliography49

List of Tables

Table No.Title of the TablePage No.

1Global Footwear Consumption (2012)8

2Global Consumption Over 13 Years8

3Global Consumption per Capita Over 13 Years9

4Exporters OF Footwear10

List Of Figures

Figure No.Title of Figure Page No.

1Organisation Chart21

2Production Department22

3Packing Process25

4Marketing Department 26

5Channel of Distribution28

6Finance Department32

7Human Resource Department 38

8Recruitment Process40

CHAPTER - IINDUSTRY PROFILE

INDUSTRY PROFILE

Nowadays, footwear has become as absolute necessity rather than fashion for civilized people. The demand for footwear is increasing day by day. Depending on the purchasing power, different classes of people use different type and quality of footwear. The middle and lower income groups prefer low cost, durable, wear and tear resistant footwear, which can be used in all climatic conditions. VKC footwear emerges as the obvious choices which satisfy all the above requirements. The increasing popularity of VKC chapels in south India and other parts of country, is assuming good demand for the product in future.

As a result of rapid economic development taking place in our country, increase in population, increase in awareness of hygiene among the people and above all the absolute and continuing necessity for footwear in general and VKCchappals is bound to increase considerably. VKCchappals is an economic substitute for leather footwear the people in rural and urban area use VKCchappals throughout the year, since it is suitable in any type of terrain and weather conditions.

Manufacture of VKC footwear was taken up in 1984 August 17 and it gained momentum in 1984. Initially plant and moulds were being imported, generally of multi-station type. 1989 the production increased to 5000 pairs aday.By 1996 it jumped to 17000pairs. Although the capacity creation was restricted due to shortage of raw materials, additional capacity continuous to be created to with indigenously available two station machinery and moulds. The capacity at present is estimated at over 100 million pairs per annum.

Full VKC footwear (chapels, sandals and shoes) are popular in Indian market due to its cheapness, durability and easy maintenance and common man can afford to buy. Raw materials that are VKCcan again be used for making cheaper type of footwear.

HISTORY OF FOOTWEAR There are evidences which show that the history of the shoe starts in 10,000 BC, that is, at the end of the Paleolithic period (paintings of this time in caves in Spain and in the south of France make reference to the footwear). Among the utensils of rock of the men of the caverns there are several that were used to scrape the skins, which indicate that the art of tanning is very old. In the Egyptian hypogeum (underground chambers used to multiple funerals), whose age is between 6 and 7 thousand years, paintings were discovered representing the various stages of the preparation of the leather and the footwear. In cold countries the moccasin is the protector of the feet and in hotter countries the sandal is still the most used. The Egyptians sandals were made of straw, papyrus or of palm fiber.

Its known that only the noblemen of that time owned sandals. Even a Pharaoh as Tutancamon paved footwear as sandals and simple leather shoes (despite the ornaments of gold). In Mesopotamia it was common raw leather shoes tied to the feet by straps of the same material. The boots were symbol of high social status. The Greek introduced new fashion as different models for right and left feet. In Rome the footwear indicated the social class. The consuls wore white shoes, the senators wore brown shoes moored by four leather tapes tied with two knots and the traditional footwear of the legions was the short boot that uncovered the toes.

In the middle age, men as well as women wore leather shoes whose form was similar to the ballet slipper. Men also wore high and short boots tied in the front and in the side. The most current material was the cow skin, but the upper quality boots were made of goat skin.

The standardization of the numeration is of English origin. The king Edward (1272-1307) was the first to uniform the measures. The first reference known of the manufacture of footwear in England is of 1642 when Thomas Pendleton provided 4,000 pairs of shoes and 600 pairs of boots to the army. The military campaigns of this time initiated a substantial demand for boots and shoes. In the middle of the 19th century the machines that helped in the confection of the footwear began to appear, but only with the sewing machine the shoe started to be more accessible. From the fourth decade of the 20th century on, big changes in the footwear industries began to happen as the change of the leather by the rubber and synthetic materials. Mainly in the female and infantile footwear. Probably the Pendletons employees made the shoes from the beginning to the end.

STRUCTURE OF WORLD FOOTWEAR INDUSTRY

Global Consumption

It is axiomatic to say globally, the footwear industry has an expanding market. World population increases, living standards rise, so does the demand for footwear. The following charts published by SATRA (Shoe and Allied Trades Research Association, UK) show the trends. The largest market for footwear in terms of pairs is Asia including the Indian sub continent. The figures for global footwear consumption (2012) and forecast to 2008 are as follows:GLOBAL FOOTWEAR CONSUMPTION (2012)

RegionMillions of pairsTotal

China2,76822.2%

Asia270621.7%

Europe254420.4%

N&S America238119.1%

Africa11729.4%

S.America8987.2%

Total12469100%

Table No. 1

GLOBAL CONSUMPTION OVER 13 YEARS

CONSUMPTION(Millions of Pairs)20032004200520062007

ASIA4,7445,2225,4745,8406,528

AMERICA 30113274327934333611

EUROPE22392396254427172886

REST OF WORLD10861187117213171399

TOTAL1108012079124691330714424

Table No.2

GLOBAL CONSUMPTION PER CAPITA OVER 13 YEARS

CONSUMPTION(Millions of Pairs)20082009201020112012

ASIA4,7445,2225,4745,8406,528

AMERICA 30113274327934333611

EUROPE22392396254427172886

REST OF WORLD10861187117213171399

TOTAL1108012079124691330714424

Table No. 3

In the year 2012 the following was the market in financial terms for exporters of footwear, i.e. the major importing areasEXPORTERS OF FOOTWEAR (2012)

RegionUS$ 000% OF WORLD

China23,362,09150.15

Asia15,718,58533.74

Europe4,256,8419.14

N&S America1,022,4232.19

Africa903,8731.94

S.America689,6751.48

Australia629,1061.35

Total46,582,594100.00

Table No. 4

The market in monetary terms shows a different picture with Asia laying a poor third behind Europe and North America, reflecting the degree of sophistication in each market. China produces and exports more shoes than any other country by far. It is also the biggest consumer of footwear by virtue of the size of its population. On the other hand its per capita consumption is low on a par with developing countries. A further breakdown of the major consuming countries and areas is as follows:

INDIAN FOOTWEAR INDUSTRYThe footwear sector is a very significant segment of the leather industry in India; rather it is the engine of growth for the entire Indian leather industry. India is the second largest global producer of footwear after China, accounting for 13% of global footwear production of 16 billion pairs. India produces 2065 million pairs of different categories of footwear (leather footwear - 909 million pairs, leather shoe uppers - 100 million pairs and non-leather footwear - 1056 million pairs). India exports about 115 million pairs. Thus, nearly 95% of its production goes to meet its own domestic demand.The major production centers in India are Chennai, Ranipet, and Amber in Tamil Nadu, Mumbai in Maharashtra, Kanpur in U.P., Jalandhar in Punjab, Agra, Delhi, Karnal, Ludhiana, Sonepat, Faridabad, Pune, Kolkata, Calicut and Ernakulum. About 1.10 million are engaged in the footwear manufacturing industry.Footwear exported from India are Dress Shoes, Casuals, Moccasins, Sport Shoes, Horrachies, Sandals, Ballerinas, Boots, Sandals and Chappals made of rubber, plastic, P.V.C. and other materials. US Retail giant Wal-Mart has also begun sourcing footwear from India since the last two years.Indian leather industry is the core strength of the Indian footwear industry. It is the engine of growth for the entire Indian leather industry and India is the second largest global producer of footwear after China. Reputed global brands like Florham, Nunn Bush, Stacy Adams, Gabor, Clarks, Nike, Reebok, Ecco, Deichmann, Elefanten, St Michaels, Hasley, Salamander and Colehaan are manufactured under license in India. Besides, many global retail chains seeking quality products at competitive prices are actively sourcing footwear from India. While leather shoes and uppers are produced in medium to large-scale units, the sandals and chappals are produced in the household and cottage sector. The industry is poised for adopting the modern and state-of-the-art technology to suit the exacting international requirements and standards. India produces more of gents footwear while the worlds major production is in ladies footwear. In the case of chapels and sandals, use of non-leather material is prevalent in the domestic market.Leather footwear exported from India are dress shoes, casuals, moccasins, sport shoes, hierarchies, sandals, ballerinas, boots. Non-leather footwear exported from India is Shoes, Sandals and Chappals made of rubber, plastic, P.V.C. and other materials. With changing lifestyles and increasing affluence, domestic demand for footwear is projected to grow at a faster rate than has been seen. There are already many new domestic brands of footwear and many foreign brands such as Nike, Adidas, Puma, Woodland, Reebok, Florham, Rockport, etc. have also been able to enter the market.The footwear sector has matured from the level of manual footwear manufacturing methods to automated footwear manufacturing systems. Many units are equipped with In-house Design Studios incorporating state-of-the-art CAD systems having 3D Shoe Design packages that are intuitive and easy to use. Many Indian footwear factories have also acquired the ISO 9000, ISO 14000 as well as the SA 8000 certifications. Excellent facilities for Physical and Chemical testing exist with the laboratories having tie-ups with leading international agencies like SATRA, UK and PFI, Germany.CURRENT SCENARIO

Kerala Industrial Infrastructure Development Corp (Kinfra) said it will set up a state-of-the-art footwear park in Malappuram district in north Kerala.The park will come up on 120 acres in Vazhakkad, Malappuram.The park would be ready in two years and would have facilities for manufacturing footwear and raw materials needed for the industry. The park would emerge as a big support for around 200 footwear manufacturing units in north Kerala.The project is expected to cost Rs.17.5 crore excluding the land cost. In Kinfras assessment, footwear units in the state were able to exploit only half of the Rs.600-crore footwear market. The thrust areas of the park would be non-leather footwear, footwear component manufacture, leather footwear, safety footwear and sportsmens footwear. Kendras aim is to promote use of new technology in footwear sector and generate employment.The project is expected to provide direct employment to 3,250 people and indirect employment to 6,500.Cloth and leather-based industrial units will also start operations from the park.

CHAPTER IICOMPANY PROFILE

Company profile HISTORY OF COMPANY COMPANY VKC group of companies are the leading footwear manufacture especially in southern region of India. The group established on (August17) 1984 with a nominal capital and few employees. In 1984 the founder of the group Mr. V.K.C. Mammed Koya started a Hawai Sheet manufacturing unit with his two brothers. Later on Hawai straps were also inducted to the production line and in 1986 VKC group launched the first product with its own brand name in the market viz. VKC Hawai with an initial production of 600 pairs per day. By 1989 the production increased to 5000 pairs a day and by 1996 it jumped to 17000 pairs.

In between the founder initiated the floating of the first RPVC (Rigid Polyvinyl Chloride) footwear manufacturing unit in the Malabar Area of Kerala state with few of his friends. This product also got very good acceptance in the market. This resulted in a rapid change in the footwear industry itself. Within a few years the number of Rubber and RPVC unit grew to more than 80 in this area.

In 1994 the group ventured the first unit in Kerala to manufacture footwear from virgin PVC. This resulted in a drastic change and the multinational brands confronted competitions from the local brands. In 1998 the group started the first Micro Cellular PVC footwear in Kerala with the help of imported plant and machinery. Quality at low price made the VKC groups products popular in the market day by day. In 2001 the group started the first Air Injected PVC DIP footwear manufacturing unit in the South India. In 2003 the group missioned the first Injected EVA manufacturing unit in South Central India. In 2006 the group started backward integration to produce EVA compound for Injection and started the first EVA compounding plant in the South Central India. During this period new bloods with technical, commercial and practical knowledge were inducted and now the group consists of 25 working Directors and 100 share holders spread over 16 various units. And have annual group turnover of Rs.4000 million. More than 4000 employees are working in these units. The company had achieved a prominent position in the footwear market of India. The main markets, which is been focused by the company are Kerala, Tamilnadu Karnataka, Madhya Pradesh, Gujarat, Andhra Pradesh. It has now expanded its market in countries such as Saudi Arabia, Dubai, Kuwait, Oman, Bahrain and Qatar.The good quality and variety in models of VKC products help the companies to face the market competition positively. The company has been able to maintain the quality of the products by adopting foreign technologies. The group is now looking for further avenues in the field of footwear to stretch their hands.

All affairs and day-to-day business administration of the firm is vested in the hands of Board of Directors. They are in charge of various functions pertaining to Finance, Production, and HR, Marketing, Administration and Materials departments. The board is assisted by well qualified staff members. Each department has functional heads, senior and junior executive in order to support and help functional heads. The Chairman of the firm was awarded with Best Entrepreneur of Kozhikode district by Kerala State Small industries Association for the year 2005-2006.M/s. Fortune Elastomers Pvt. Ltd caters to extend its markets of Kerala, Karnataka, Tamilnadu, Andra Pradesh and certain countries outside India. M/s. Fortune Elastomers exports the footwears to countries such as Saudi Arabia, Dubai, Kuwait, Oman, Bahrain and Qatar. Exports have shown a steady growth over the years. The products have a high brand value in the minds of the people of Kerala because of the quality and the affordable price of the product. The management gives high priority to the quality of the product. The company assures the quality of the product through the continuous quality checking in each and every stages of the production process. The quality of the VKC products is unrivalled in the market. The Footwears introduced by the company has been growing and evolving with the changing trends over the year. In recent years the customers prefers the DIP Footwears than any other Footwear.As we are manufacturers of footwear, we focus mainly on production process of the organization. The function of the production department is to produce our products on time, to the required quality levels, at the defined product cost. The main advantage of the company is the implementation of Taiwan technology for the injection molding process. We have both automated and manual machines for production of footwears. The quality of the imported Synthetic leather, imported by us helps from the problem of smelling due to sweatiness and wetness, which is seen in ordinary leathers. The finish, comfort, and elegances are highly superior when compared to the ordinary leather. The production process is line production process whereby materials are put through a refiningprocesstoproduceend-product through sequential operations. Of major concern to the production manager is monthly output. Production managers have monthly targets which they are expected to strive to meet or exceed. The total production estimated for a year is 51.6lakes.

The production department of M/s. Fortune Elastomers Pvt. Ltd comprises of well experienced staff members starting from functional head, department head, coordinator, supervisors, shift engineers, machine operators, pouring men and workers. Production department also aims at maintaining the quality of products been produced. Every employee is expected to take responsibility for managing quality issues in order to make sure that waste is minimised and quality maximised. Quality checking and assurance is carried out every day on a number of occasions to ensure that the production process is working efficiently and effectively.

We use different machines to produce footwears. The company purchases footwear moulds from Taiwan, China, and Italy. This will help the company to assure high quality finished product.Most of our machines are imported from abroad. It includes high speed mixer machine, fully automatic air injection molding machine, air drier & chiller, cooling tower, cementing machine, box strapping machine, clicker machine, generator conveyor, stitching machine. M/s. Fortune Elastomers PVT. LTD. has succeeded in withstanding stiff competition from the parallel manufactures because of the superior quality of the products at reasonable price.Other than production and quality checking, production department performs one more function. That is packing of finished products into cartons. A set of workers are assigned to pack finished products into specified cartons or boxes according to their name and size. Before packing quality is again checked by the workers. After packing all these cartons are sent to stock room for storing so that it can be sent to dealers directly according to the order placed.

COMPANY VISION To provide quality products to the customer at an affordable price. Provide high quality product and service create a new landmark of the footwear industry. To become the best valid company in the footwear industry. The company put emphasis on environment protection, labour security, and human right and provides pleasant working condition for our people.

COMPANY MISSIONTo meet the market demand and to achieve a prominent position in the Footwear industry.

MOTTOQuality products at Affordable Price

BRAND AMBASSADOR-MEERA JASMINE

COMPANY POLICY Implement programs of continued education and specialized training in footwear component technology, commerce and management issues. Promote a healthy growth of the footwear component industry and its export. Organize technical and laboratory assistants for members to attain highest levels of quality. Promote goodwill amongst component manufactures. Promote interaction among members for development of products of better quality. Technical and laboratory assistants for members to attain highest levels of quality. Promote goodwill amongst component manufactures. Promote interaction among members for development of products of better quality.

THE HEAD QUARTER OF VKC GROUP IS IN CALICUT AND THE PLANTS OF VKC GROUP OF COMPANIES ARE SITUATED IN KERALA, TAMILNADU, ANDRA PRADESH AND GUJARAT. THE FOLLOWING ARE THE ASSOCIATE COMPANIES OF VKC GROUP.

1. M/s. VEEKESY RUBBER INDUSTRIES PVT.LTD.2. M/s. VEEKESY ELASTOMERS PVT.LTD. 3. M/s. VEEKESY POLYMERS PVT.LTD.4. M/s. SANDLON TECHNOLOGIES PVT.LTD.5. M/s. FORTUNE ELASTOMERS PVT.LTD. 6. M/s. CALTECH POLYMERS PVT.LTD.7. M/s. SLIPONS INDIA PVT.LTD8. M/s. DIADORA SHOES PVTLTD.9. M/s. DIMESCO FOOTCARE INDIA PVT LTD.10. M/s. FERRARI SHOES (INDIA) PVT.LTD11. M/s. VEEKESY FOOTCARE (INDIA) PVT. LTD12. M/s. FERRERO VINYL TECHNOLOGIES PVT.LTD13. M/s. MORBIDO VINYL PVT.LTD.14. M/s. SMARTAK FOOTCARE PVT. LTD.15. M/s. VKC FOOTSTEPS INDIA PVT.LTD16. VKC FOOTPRINTS GLOBAL PVT LTD17. VKC FOOTWEAR INTERNATIONAL PVT LTD18. M/s VEEKESY SANDALS INDIA PVT LTD

CHAPTER- IIIDEPARTMENTATION

DEPARTMENTATION

ORGANISATIONAL CHART

CHAIRMAN

DIRECTORS

MANAGER (ADMINISTRATION)

ASSISTANT MANAGER

MATERIALSFINANCEPRODUCTIONSALES

PRODUCTION HEADDEPARTMENT HEAD

DEPARTMENT HEADDEPARTMENT HEAD

COORDINATOREXECUTIVE

EXECUTIVEEXECUTIVE

SUPERVISORJUNIOR EXECUTIVEJUNIOR EXECUTIVEJUNIOR EXECUTIVE

SHIFT ENGINEERS

SKILLED WORKERS

PERSONNEL

DEPARTMENT HEADUNSKILLEDWORKERS

EXECUTIVE

JUNIOR EXECUTIVE

Figure No.1

PRODUCTION DEPARTMENT

Production head

Coordinator

Supervisor

Shift engineer

Skilled Workers& unskilled workers

Figure No.2

Production is the making of goods for sale or the rendering of paid services.The making of goods, however, must not be interrupted tooliterally to mean the creation of some material object; we do not so much make things as make them more serviceable. We create, not material object, but utility.

MATERIALS DEPARTMENTMaterials department of the organization place order according to need of material thats used for production. Supervisors and production in charge gives details of materials needed for production and accordingly materials are purchased by placing order through e-mail.

The main raw material used for the production of VKC pride and VKC style as given below.PU POLYON PU ADDITIVE COLOURING AGENTPVC PVC RESIGN DOP NROX FYNOLGON BLOWING AGENT SYEARIC ACIDS PVCCOMPUND MASTER BATH SILICA SHUESHNER BEAROSTEACH MEKMACHINERY USED is: High Speed Mixer Machine Fully Automatic Air Injection Moulding Machine Air Drier & Chiller Cooling Tower Cementing Machine Box Strapping Machine Clicker Machine Generator Conveyor Stitching

MANUFACTURING PROCESS

The production department functions directly under the production manager. The machinery used in the manufacturing process is:

PU Pouring machine Clicking machine Stitching machine Cooling tower Air drier Cementing machine Embossing machine Stitching Machine Generator Mould& Dies

At first stage of production process the raw materials are fed into the high-speed mixture, where in it is pre-heated for accelerating the injection process.After heating in the high speed mixture, the materials are moved or transferred into horizontal molding machine or to the rotary injection machine. Horizontal molding machine is that which is used to produce one pair at a time. Usually, ladies footwear is produced using horizontal molding machine, which is a compact one. Rotary injection molding machine is used, where the production is carried not on compact materials.

PACKING PROCESS

Trimming Process

Conveyer System

Tag Fitting

Packing into small carton

Fixing size & price sticker in small carton

Packing into Master carton

Final check-up in Pairs, Art no., Size & Price

Box strapping

Figure No.3

MARKETING DEPARTMENT

Department head

Executive

Junior executive

Figure No.4

Marketing isthe management process responsible for the identifying, anticipating and satisfying consumers requirements profitably. To be the best product in the market company is giving importance to the following:

Brand Name

The brand name used for the product is VKC

Motto

Quality at Low Price

Quality

Quality of the products is the main marketing technique that the company used.

Advertising

The Company treats the advertising as the main mode ofmarketing to improve the sales of their products.

Schemes

One of the main marketing techniques of the company is the different schemes for theircustomersand dealers.

a) Wholesalers MeetThe company conducts the Wholesalers Meet at least once in a year. By this the company provides an opportunity to the wholesalers to interact with the company and between the dealers. This helps to find problems, sort-out differences, and to formulate plans for future improvement in the market.

b) Order Taking & Collection The company executives are directly taking the orders from the wholesalers.

c) Delivery SystemThe Company has very good system for the supply ofthe products to the wholesalers. The company had provided the door delivery system and they are fixed a weekly chart for the supply.

MAIN FUNCTIONS OF MARKETING MANAGER

Sales operation Inventory management Production forecasts Control of sales Evaluating the Marketing Pulse Tailoring Promotion plans and activities Monitoring delivery performance of distributors

MARKETING TECHNIQUES

The Marketing Techniques used the company are: Channels Of Distribution Sales Promotion Advertising Market Research

Channels of Distribution: Channel of distribution is the set of marketing intermediaries through which the goods flow from the producer toconsumer.The company had provided the door delivery system to the wholesalers for the distribution of products through their owned vehicles and through the different transporters.

The Channel of Distribution followed by the Company is:

Manufacture

Wholesaler

Retailers

Consumers

Figure No.5

The company adopts a two level distribution system consisting of a Wholesale dealer and a Retail dealer. The company is satisfied with the existing arrangements.

Sales Promotion: Sales promotion plays a major role for the success of the products. Sales promotion influences the customers for buying the products and also helps to meetcompetition.It popularizes the product so as to stimulate demand. Sales promotion tools used are Consumers Promotion Coupons Demonstration Contest Price offer Dealer Promotion Sales contest Dealer gift Turnover allowance

Advertising &Schemes: The Advertising covers all activities connected with giving of publicity regarding goods and services offered for sale. The main Medias for advertising are: Indoor Media & Outdoor Media.

Indoor Media TV channels News papers Magazines Catalogues, danglers, calendars, & stickers Outdoor Media Name boards & a boards Hoardings

The company is providing different schemes for customers, retailers and wholesalers during seasons. This helps the company to gets the good results in sales and publicity.

Market Research: Marketing research helps in analyzing the buyers habits, popularity of a product, and effectiveness of advertising media. It also helps to collect information about marketing problems and opportunities. Thecontinuous marketing research has been conducted by the company which helps them in planning and executing marketing strategies for the future course of action

THE PILLARS IN THE PATH OF SUCCESS OF THE FIRM

1. Foreign Technologies:

The main advantage of the company is the implementation of Taiwan technology used by them for the injection moulding process. Moulding process is the main activity and the key process of manufacturing of quality footwear.The Company purchases Footwear Moulds from Taiwan, China, and Italy. This will help the company to assure high quality and good finish to the product.The quality of the imported Synthetic leather is highly superior to the Indian products. The problem of ordinary synthetic leathers like smelling due to sweatiness and wetness is not seen in the imported products. The finish, comfort, and elegances are highly superior to the Indian product.

2. Employees of the Firm:

The company always maintains good employer- employee relationship. The employees are well satisfied with the attitude of the management towards them and in the facilities provided to them. So there were no labour strikes, labour absenteeism andlabourresignation. The company provides excellent training programs for the employees to improve the skills and productivity with in a lesser time. The employees are getting the statutory benefits like Bonus, ESI scheme, Employees Provident Fund, Festival Holiday Allowances from the company

3. Quality of the Product:

Quality can be viewed as a weapon for competitive advantage, as a means ofprofitability and a source of value for customers, investment in quality achieves desired business results. Quality derives the productivity machine and leads the firm toprosperity.Even though operators have a special responsibility to produce quality products forthe customers, this requires the combined effort and cooperation of the entire organization. Quality Management of Caltech involves quality planning, quality control and quality improvement is cross function in nature. The company has to face keen competition in the market since there are numbers offootwears manufactures in the country. The main factor, which determines sales, is the quality of the products. The company produces good quality products and hence they are capable of competing with others. M/s. Fortune Elastomers Pvt. Ltd. has succeeded in withstanding stiff competition from the parallel manufactures because of the superiorquality of their products at reasonable price.

4. Advertising & Marketing:

The advertisement of product is of news of information concerning an ideas, services or products to induce action which is suitable with the intent of the advertiser. The advertisement given is based on the new trends in the market and which are highly attractive by the customer. Marketing is the process of providing the right product of the right quality in the right quantity in the right place at the right time.Fortuneis a right product with a right quality and the management tries to supply the required quantity in the right place at the right time. This helps fortune to bethe one of the best product in the market. Marketing plays a vital role for the success of ourproducts in the market. The adequate production, supply, good quality, affordable price of the product, and the various marketing techniques used by the company which helps its products to be a superior one in the market that satisfies the customer.

FINANCE DEPARTMENT

Junior executiveFinance DepartmentDepartment head Executive

Figure No.6

Financial management is responsible for estimation of financial resources. Financial is lifeblood of every business. Therefore it is most important and complicated for business.

Finance department in Fortune Elastomerspvt is needed by finance manager and under him accountant and assistant accountant.

OBJECTIVES OF FINANCIAL DEPARTMENT

For every business, finance is considered as the back bone of its functioning. The success of a concern is measured in terms of the finance position. Finance is one of the basic foundations of all economic activities concerned with the acquisition and utilization of capital funds and assets and overall objectives of business concern.

VKC has very strong financial department. This is concerned with the proper utilization of the financial resources of the company. The finance controller is the head of the department and has two finance managers. The decisions and policies taken by the council will be passed by the finance controller through the finance manager to the manager of each section. Finance department is concerned with the planning and controlling of the firms financial resources.

Preparation of corporate plans, annual plans and budgets. Financial planning cost control and ensuring uniform and correct observance of financial disciplines of the company. Monitoring the progress of budget achievements. Providing accounting to all levels, ensuring updating systems procedure for the same. Evolve an audit manual.

DUTIES OF FINANCE MANAGER

To inspect the accounts of the company. To monitor all the financial transactions of the company. To arrange the reconciliation of the book of accounts of the company with the book of accounts of the company.

REGISTERS AND BOOKS OF ACCOUNTS

The managers should keep proper books of accounts, registers and other documents. He should maintain proper and accurate records of accounts of working of the company. Copies of the balance sheet shall supply free on demand of any members.The books generally kept in finance department are1. Cash book2. General Ledger3. Bank Book4. Sales Journal5. Purchase Journal

Cash book: The Company maintains a cash book in which all cash transaction are recorded. The purpose of cash book is to keep a daily record of all transactions relating to receipt and payments. When cash is received it is debited with the amount and paid is entered on credit side of the cash book. The cash book is balanced on end of each month and balance is cash in hand of the month

General ledger: The general ledger is a collection of the group of accounts that supports the value items shown in the major financial statements. It is built up by posting transactions recorded in the sales daybook, purchases daybook, cash book and general journals daybook. The general ledger can be supported by one or more subsidiary ledgers that provide details for accounts in the general ledger. The general ledger account is maintained to record all the transactions. It contains more than 100 ledgers. Entries from daybook and directly posted to the general ledger. It is balanced at the end of the financial year.

Bank book: A passbook or bankbook is a paper book used to record bank transactions on a deposit account

Sales journal: A sales journal is a specialized accounting journal used in an accounting system to keep track of the sales of items that customers have purchased by changing them to their accounts-receivable account.

Purchase journal: Purchases Journals record transactions that involve purchases on credit. Source documents here would probably be invoices. The purchase of inventory on credit is recorded in the purchases journal.

FUNCTIONS OF FINANCE DEPARTMENT IN VKC1. Finalization of accounts2. Preparation of wage sheets3. Maintain cost records4. Budget making and set target to be achieved5. Set out the financial requirements, loans, income expenditure etc.6. To ensure prompt payment of the supplier of materials, equipments, machinery etc.7. To make all statutory payments like income tax, ESI, sales tax, provident fund etc.8. To collect all income due to the company at the right time.9. To record all transactions in the books of accounts to make periodic statements such as trial balance, profit and loss account and balance sheet.10. To prepare financial budget and check the expenditure as per the budgeted amount.11. To make proper cash balancing and to prepare cash flow and fund flow statements.12. To conduct various audit like statutory audit, internal audit, management audit, cost audit, external audit etc.

FINANCIAL DEPARTMENT OF FORTUNE ELASTOMERS PVT. LTD. CONSISTS OF FOLLOWING SECTIONS Bill section Final account section Stores account section Budget account section Salary and wages section Cast section Sales section Time office section Computer section:

ACCOUNTING POLICIES OF VKC

1. Investments:

2. Sales:

3. Fixed Assets: Fixed assets are stated at the cost of acquisition or construction, less depreciation.

4. Inventories: Raw materials, materials in process and stores are valued at cost on weighted average method and finished goods are valued at cost.

5. Depreciation: Written down depreciation method is followed.

6. Scrap: Accounting for scrap is done at the time of sales.

DIVIDEND POLICY

The term dividend refers to that part of profit of a company which is distributed among the shareholders. It is the return to the shareholders for investment made by them in the shares of company M/s FORTUNE ELASTOMERS PVT. LTD. provides a dividend on equity shares to its shareholders.

HUMAN RESOURCE DEPARTMENT

Department head

Executive

Junior executive

Figure No.7

Personnel management is concerned with people at work and its aim is to develop good relationship between management and employee. Personnel management is that part of total management of an organization, which specially deals with human resources in respect of a) Their procurement.b) Their development.c) Their motivation, towards the attainment of organizational objectives.Edwin.flippo The personnel function is concerned with the procurement, development, compensation, integration and maintenance of the personnel of an organization for the purpose of contributing towards accomplishment of the organizations major goals

Human resource department in FORTUNE ELASTOMERS PVT LTD

M/s Fortune elastomers Pvt. Ltdhas an efficient personnel department which is headed by managing director. The department performs the personnel and administrative functions. It has a direct link with the employees and understands their needs and wants.

FUNCTIONS Identify human recourses requirements, job specifications, skill needs Recruitment and selection Training Provide sound program of salary and wage administration Allowance for the employees Provide and maintain safety measures Keep employment records Handle labor problems and employee disputes A personnel record sheet is prepared of very personnel

OBJECTIVES To provide leadership for management of industrial relations and employees welfare functions of company. For evolving systems of promote attention and redressed of employees participation. To provide policies for maintenance of industrial peace and for workers motivation. Evolve and update practices for checking incoming and outgoing of materials and persons. Administrating the different committees for employees participation. Implementing the standing orders pertaining in the company.

RECRUITMENT PROCESS

Recruitment of office staffs are conducted by the head office to all the unit and workers are selected by the internal process.

RECRUITMENT PROCESS

RECRUITMENT NEED IDENTIFIEDHR PLAN

JOB DESCRIPTION

PERSON SPECIFICATION

DESIGN SELECTION METHOD

SHORT LIST

SELECT

MAKE JOB OFFER

Figure No.8

Selection

It is a process of choosing the right persons among the application. The various stages involved in selection process are:

a) Scrutiny of application receivedThe applications are received for a particular post is categorized as: Applications having required educational qualification and experiences. Applications that do not have required qualification are rejected.

b) Preliminary interviewUsually, at this stage, unsuitable candidates are eliminated even though they have required qualification.

c) InterviewHere, the basic idea is to find the overall suitability of the candidate for the job. It also provides opportunity to give relevant information about the organization to the candidate.

d) Final selectionAfter the candidate has passed all the stages above mentioned, he has an appointment offer letter. Usually, candidates are appointed for probationary period for few months ranging from 3 months to 6 months. After successful completion of probationary period, he is appointed for a permanent basis.

Training

Training means to give information or skill through instructions or practical. It is a method for increasing the knowledge and skill of the people for a specific job. Training is the art of increasing the knowledge and skills of employees for doing a particular job.

The training methods used are:

1. On the job training

On The Job Training: This is a common used method for training the operative personnel. The workers are trained under the same type of conditions they have to work in future. On the job he can experience the conditions and requirements of actual work situations.

REMUNERATION TO EMPLOYEES

The minority reward paid by the management to worker or an employee for the performance of the assigned task is called wages or salary. Salary is the remuneration paid to non-operative staff: salaries are paid on a monthly basis to office staff, managers and Technical advisors etc. Wages is the remuneration paid to the workers involved in production.

BONUS FOR EMPLOYEES

The word bonus denotes an incentive payment to the workers aimed at enhancing their efficiency and loyalty to their organization.PROMOTION

Promotion takes place when an employee moves to a higher than once formerly occupied. Advancement within an organization is ordinarily labeled as promotion which involves a change from one job to another that is better in terms, status and responsibility. For every change for promotion, 3 persons are considers. Basic for promotion in M/s FORTUNE ELASTOMERS PVT LTD are attendance, performance, seniority.

TRANSFER

Transfer refers to shifting of a person from one job to another without reference to change in responsibility or remuneration. In VKC, transfer is given for administrative staff only.

PERFORMANCE APPRAISAL

It is a system evaluation of present capabilities of personnel, by its supervisors. It is the process of estimating or judging value status of a person. The main objectives of performance appraisal are:

To provide systematic judgment to back up salary increments, transfer etc. Means of telling the employees how he is doing or performing his work and suggesting the need changes in his behavior. It is based as a base for coaching and counseling the individual by his superior.WORKING TIMEGentsOffice staff 09:00 7:00Factory Workers - 8.00 4:00WomenOffice staff -9:00-5:30Factory workers 8.30-5.30VEHICLESThe security guards are in charge of incoming and outgoing vehicles. A separate sheet is setup for keeping the vehicles.SAFETY MEASURESThe safety measures used by the company to protect the workers from accidents are: Gloves Goggles apparent shoes Mask

CHAPTER - IV

SWOTANALYSIS

SWOT ANALYSISThe overall evaluation of the companys strength, weakness, opportunity and threat is called SWOT analysis. This type of analysis is designed to help identify several areas of a business that may need improvement and other areas where the company may be able to improve upon. SWOT is an acronym for; Strength, Weakness, Opportunities and Threats. A company should consider this analysis to be one of the most important steps to becoming one of the leading stores and schools of this nature in the area.

STRENGTHS

VKC has good brand image in world market Company is using modern technology Location is another major competitive advantage The company is using high quality material for the production The price of the product is low comparatively to the competitors. The company has wide range of product line than the competitors. Qualified design term High capacity utilization Productivity of the plant Quality products at low price. VKC manufacture a wide variety of products. Well trained and disciplined employees Good support between employers and employees Strong quality control system A good support from the government The organization looks after the welfare measures of its employees.WEAKNESS Lack of space management in the production centre Lack of trained employees

OPPURTUNITIES

Support from government. Joint venture with other companies. Market in foreign countries. Development of dealer network. Proper marketing and strategic decisions will help the companys promotion. Using sophisticated products can reduce cost of production. Use of advanced technology.

THREATS

Stiff competition from traders and other similar organization. No proper utilization of available capacity. Inefficient productivity. The changes in the government policies affect the smooth functioning of the organization.

Conclusion

During the study period, major departments were covered. The various departments of the organization are production, material management, human resource, finance and sales. Various functions, scope, activities etc. of the departments were covered. All the departments of the organization work cooperatively and coordination is also good for the achievement of the common goal of the business.

Bibliography

Books

Mr. ASWATHAPPA, Human Resource & Personnel Management Mr. MALHOTHRA, Marketing Research Mr. PHILIP KOTLEM, Marketing Management

Journals

Company Manuals and Records

Websites

www.veekesy.com www.leatherindia.org www.footwearhistory.com

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