kitex lmt organisation study

ORGANIZATIONAL STUDY REPORT

On

KITEX LIMITED, KIZHAKAMBALAM

Report submitted in partial fulfillment of the requirement for the award of

The Degree of

MASTER OF BUSINESS ADMINISTRATION

2012-2014

Submitted by

BLESSON.T.RAJAN

(Reg No: 42772)

Under the guidance of

Prof.Vinod .K.Raju

Musaliar Institute of Management

(Affiliated to MG University kottayam and Approved by

AICTE)Pathanamthitta-689653, Kerala


1

MUSALIAR COLLEGE OFMUSALIAR COLLEGE OF

ENGINEERING AND TECHNOLOGY ENGINEERING AND TECHNOLOGY

PATHANAMTHITTAPATHANAMTHITTA

CERTIFICATECERTIFICATEThis is to certify that this report is based on the organization study conducted by BLESSON.T.RAJAN at KITEX LIMITED KIZHAKAMBALAM, ALUVA, is in partial fulfillment of the requirement for the degree of MASTER IN BUSINESS ADMINISTRATION, degree program of MAHATMA GANDHI UNIVERSITY, Kottayam.

Signature Signature

(Head of department) (Faculty guide)

Signature of Examiner


2

DECLARATION

I, BLESSON.T.RAJAN, student of Musaliar Institute of Management

Pathanamthitta hereby declare that this report on ORGANISATION STUDY is an

original work done by at KITEX LIMITED, KIZHAKAMBALAM ,ALUVA from

3th JUNE to 3th JULY 2013.

This study was undertaken in partial fulfillment of the requirement for the award of

the Course of Post graduate diploma in Management and is being submitted to my

Institution. I further declare that this report has not been submitted to any other

university or institution for the award of any degree or diploma.

Place: PATHANAMTHITTA BLESSON.T.RAJAN

Date: 15/7/2013


3

ACKNOWLEDGEMENT

In preparing this Internship training report I have been fortunate enough to get

support from number of people to whom I shall remain grateful.

First and foremost I thank god almighty for giving me the ability to do this

study and make the venture a success

I place my sincere thanks to Mr.K.C.Pillai, Manager

Administration, Kitex Limited for permitting me to do the organizational study at

Kitex . I would also like to thank the members of all other departments for their

constant support and guidance.

I would like to express my deep felt gratitude to our Dean, Dr.

M.H.Salim, Director, my heartfelt gratitude to him for the unremitting support

bestowed upon me all though.

I am very thankful to Prof.Vinod.K.Raju, Lecturer, and my guide, who have

rendered timely relevant information, valuable suggestions, assistance and

encouragement which I found extremely useful for the organizational study. Without

which it could have been difficult for me to complete my organizational study.

With immense pleasure, I ensure my deep sense of gratitude especially to

Miss. RINKU TITUS (Human Resources), who guides me to make this project to a

great success.

I am also thankful to all the staffs of the departments of Kitex limited, which I

have visited, who has helped me to complete the report successfully.

Finally, with deep feelings of indebtedness, I express my heartfelt thanks to

my parents, friends and well-wishers who have directly and indirectly contributed

towards this organizational study.

BLESSON.T.RAJAN


4

TABLE OF CONTENTS

CHAPTERNO

TITLE PAGE NO.

1 INTRODUCTION 9-10

1.1 Need and significance of the study 10-111.2 Objectives of the study 111.3 Scope of the study 111.4 Methodology followed 121.5 Scheme of Reporting 12

2 INDUSTRY PROFILE 13

2.1 Industry and Evolution 14-15 2.2 Global Scenario 15

2.3 Indian Scenario 15-18

2.4 State Scenario 18-19

2.5 Industry Competitive Analysis 19-23

3 COMPANY PROFILE 24

3.1 Introduction 25-26

3.2 Kitex Limited 26-28

3.2.1 Corporate Vision 29

3.2.2 Corporate Mission 29

3.3 Product Details 29-32

3.4 Organization Structure 32

4ORGANIZATION CHART 33-34

5 The departments 35

5.1 Finance Department 36-39

5.2 Production Planning Department 40-47

5.3 Marketing Department 48-54

5.4 Personnel and Administration Department 54-64


5

5.5 Purchase department 64-67

5.6 Store department 67-69

5.7 Quality department 70-74

6 Swot analysis 75-77

7 Findings and suggestions 78-80

8 Conclusion 81

9 Bibliography 82


6

LIST OF FIGURES

FIG. NO. TITLE PAGE NO.

3.1 Organizations Vision and Mission 28

3.3 Organization Structure 34

5.1 Structure of Finance Department 39

5.2 Structure of Production and Planning Department 41

5.3 Production Flow Chart 47

5.4 Structure of Sales and Marketing Department 54

5.5 Structure of Personnel and Administration department 64


7

Chapter-1

INTRODUCTION

Organization is a social unit which is deliberately constructed and

reconstructed to seek specific goals. An organization comes into existence when there


8

are a number of persons in communication and relationship to each other and are

willing to contribute towards a common Endeavour. The evolution or organization

dates back to the early stages of human civilization when two or more persons began

to cooperate and combine together for fulfilling their basic needs of food, clothing,

shelter and protection of life. Thus, an organization is born when people combine

their efforts for some common purpose. It is a universal truth that an individual is

unable to fulfill his needs and desires alone because he lacks strength, ability, and

resources. So he seeks the cooperation of other people who share goals with him.

This study is done at KITEX Ltd, Kizhakkambalam, Aluva. It has been

carried out to get an understanding of the structure and functioning of the

organization. This study undertaken to get an exposure to the functioning of different

departments of the company. It also helps to interact with the managers of different

departments and to observe the workers at their work place and to act together with

them. Main purpose of the study is to get a clear-cut idea about the functioning of

different departments of the company.

Organization study is confined to 31 days based on the primary data obtained

from the head of various departments, the middle level managers and supervisory

staff. This covers in brief in the present position of the textile industry and the

company. Organization study is conducted by personally visiting the company at

Kizhakkambalam. Primary data have been collected by structured interview with the

managers and other personnel of the company. All the information about

manufacturing process has been gathered by interacting with different personnel of

the organization at various levels

1.1Need and Significance of 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.

Organization study at KITEX helped me to acquire practical knowledge through

personal study and observation. Apart from analyzing and understanding the recent

trends and strategies in different industries of KITEX Ltd, the investigation had multi-

dimensional focus on the following areas:


9

a. Type of business performed by the company and its nature.

b. Various functions and operations of the company.

c. To know the market position of the organization.

d. Production process performed by the company.

e. Financial and the accounting patterns of the company.

f. Human resource management of the company.

g. 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 which we learned in the text books.

1.2Objective of the Study

a. To analyze the functioning of each department and organization as whole.

b. To study the various functions of the Organization.

c. To identify the relative position of the company

d. To get in touch with the industrial and organizational environment.

e. To know about organizational structure.

1.3Scope of the Study

This organization study is useful in getting the quality and performance of the

company. It will help to conduct a detailed study on the structure of the functional

areas of the organization. It also helps to identify the strength and weakness of

organization and also help to find out the area where the organization should improve.

This study also helps researcher to familiarize with the textile industry and also

ascertain the present position of the company.

1.4Methodology Followed

Primary Data:


10

It is collected through the discussion with managers, various department

heads, officers, and employees.

Secondary Data:

It is collected from:

a. Internetb. Annual reportc. Office records

This study is done by personally visiting the company at Kizhakkambalam,

Aluva. All the primary data’s 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 equipment’s 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.

1.5Scheme of Reporting

This report is presented in 8 chapters

Chapter 1 deals with the Introduction of the study, its need and significance,

objectives of the study, the scope and the methodology followed. Chapter 2 deals

with the Industry Profile. It includes the evolution of the industry, an analysis of the

current competition prevalent, world scenario, Indian scenario, and Industry

competitive analysis. Chapter 3 discusses the Company Profile of Kitex Limited. It

includes the introduction, vision and mission, promoters of the company, product

details, and organizational structure. Chapter 4 include organization chart. Chapter 5

discusses the details of the departments of the company and their functions. Chapter 6

includes SWOT analysis. Chapter 7 includes findings and suggestions and

recommendations. Chapter 8 include conclusion.


11

Chapter-2

INDUSTRY PROFILE

Introduction to Industry and its Evolution


12

New innovations in clothing production, manufacture and design came during

the industrial revolution – these new wheels, looms, and spinning processes changed

clothing manufacture forever. There were various stages –from a historical

perspective-where the textile industry evolved from being a domestic small-scale

industry, to the status of supremacy it currently holds. The ''cottage stageʺ was the

first stage in its history where textile were produced on a domestic basis.

Clothing manufactured during the industrial revolution formed a big part of

the exports made by Great Britain they accounted for almost 25% of the total exports

made at that time doubling in the period between 1701 and 1770. The center of the

cotton industry in Great Britain was Lancashire –and the amount export from 1701 to

1770 had grown ten times .However, wool was the major export item at this point of

time. In the industrial revolution era, a lot of effort was made to increase the speed of

the production through inventions such as the flying shuttle in 1773, the flyer-and-

bobbin system, and the Roller spinning machine by John Wyatt and Lewis Paul in

1738.

During this period cloth was made from materials including Wool, flax and

cotton .The material depended on the area where the cloth was being produced, and

time they were being made. In the latter half of the medieval period in the northern

part of Europe ,cotton come to be regarded as imported fiber .During the later phase

of the 16th century cotton was grown in the warmer climes of America and Asia

During the Industrial Revolution, new machines such as spinning wheels and

handlooms came into the picture; making clothing material quickly became an

organized industry-as compared to the domesticated activity it had been associated

with before. A number of new innovations led to the industrialization of the textile

industry in Great Britain. In the initial phases, textile mills were located in and around

the rivers since they were powered by water wheels. After the stream engine was

invented, the dependence on the rivers ceased to a great extent .

In the later phase of the 20thcentury, shuttles that were used in the textile

industry were developed and became faster and thus more efficient .This led to the

replacement of the older shuttles with the new ones. Today , modern techniques,

electronics and innovations have led to a competitive, low –priced textile industry


13

offering almost any type of cloth or design a person could desire .With its low cost

labor base ,china has come to dominate the global textile industry.

2.2Global Scenario

According to statistics, the global textile market possesses a worth of more

than $400 billion presently. In a more globalize environment the industry has faced

high competition as well as opportunities. It is predicted that global textile production

will grow by 25% between 2002 and 2010 and Asian region will largely contribute in

this regard .High production of wool, cotton and silk over the world has boosted the

industry in recent years.

Japan, India, Hong Kong and China became leading producers due to their

cheap labor supply, which is an important factor for the industry the World Trade

Organization (WTO) has taken so many steps for uplifting this sector. In the year

1995, WTO had renewed its MFA and adopted Agreement on Textiles and Clothing

(ATC), which states that all quotas on textile and clothing will be removed among

WTO member countries. However the level of exports in textiles from developing

countries is increasing even if in the presence of high tariffs and quantitative

restrictions by economically developed countries. Moreover the role of

multifunctional textiles, eco-textiles and customized textiles are considered as the

future of the textile industry.

2.3 Indian Scenario

Textile industry in India is the second largest employment generator after

agriculture. It holds significant status in India as it provides one of the most

fundamental necessities of the people. Textile industry was one of the earliest

industries to come into existence in India and it accounts for more than 30% of the

total exports .In fact Indian textile industry is the second largest in the world, second

only to China.

Textile industry is unique in terms that it is an independent industry, from the

basic requirement of raw materials to the final products, with huge value addition at

every stage of processing. Textile industry in India has vast potential for creation of

employment opportunities in the agricultural, industrial, organized and decentralized


14

sectors rural and urban areas, particularly for women and the disadvantaged. Indian

textile industry is constituted of the following segments: Readymade Garments,

Cotton Textiles including Handlooms, Man-made Textiles, Woolen Textiles,

Handicrafts, Coir and Jute.

Till the year 1985, development of textile sector in India took place in terms of

general policies. In 198, for the first the importance of textile sector was recognized

and a separate policy statement was announced with regard to development of textile

sector .In the year 2000, National textile policy was announced. Its main objective

was to provide cloth of acceptable quality at reasonable prices for the vast majority of

the population of the country, to increasingly contribute to the provision of

sustainable employment and the economic growth of the nation and to compete with

confidence for an increasing share of the global market. The policy also aimed at

achieving the target of textile and apparel exports of us$ 50 billion by 2010 of which

the share of garments will be us$ 25 billion.

2.3.1. Characteristics of Indian Textile Industry

a. India has rich resources of raw materials of textile industry. It is one of the

largest producers of cotton in the world and is also rich in resources of fibers

like polyester, silk, viscose etc.

b. India is rich in highly trained manpower .the country has a huge advantage due

to lower wage rates. Because of low labor rates the manufacturing cost in

textile automatically comes down to very reasonable rates.

c. India is highly competitive in spinning sector and has presence in almost all

processes of the value chain

d. Indian garment industry in very diverse in size, manufacturing facility, type of

apparel produced, quantity and quality of output, cost, requirement for fabric

etc.. It comprises suppliers of ready-made garments for both domestic or

export markets.

e. Indian textile industry is highly fragmented in industry structure, and is led by

small scale companies. The reservation of production for very small

companies that was imposed with the intention to help out small scale

companies across the country, led substantial fragmentation that distorted the

competitiveness of industry. Smaller companies do not have the fiscal


15

resources to enhance technology or invest in the high –end engineering of

processes. Hence they lose in productivity.

f. Indian labor laws are relatively unfavorable to the trades and there is an urgent

need for labor reforms in India.

g. India seriously lacks in trade pact memberships, which leads to restricted

access to the other major markets.

2.3.2Problems Facing by Textile Industry in India

The cotton textile industry is reeling under manifold problems. The major

problems are the following;

Sickness:-

Sickness is widespread in the cotton textile industry. After the engineering

industry, the cotton textile industry has the highest industry incidence of sickness. As

many as 125 sick units have been taken over by the Central Government. Sickness is

caused by various reasons like the problems mentioned below.

Obsolescence:-

Plant, machinery and technology employed by a number of units are obsolete.

The need today is to make the industry technologically up-to-date rather than expand

capacity as such. This need was foreseen quite some time back and schemes for

modernization of textile industry had been introduced. The soft loan scheme was

introduced a few years back and some units were able to take advantage of the

scheme and modernize their equipment. However, the problem has not been fully

tackled and it is of utmost importance that the whole industry is technologically

updated.

Govt. Regulations:-

Government Regulations like the obligation to produced controlled cloth are against

the interests of the country. During the last two decades the excessive regulations

exercised by the government on the mill sector has promoted inefficiency in both

production and management. This has also resulted in a colossal waste of raw


16

materials and productive facilities. For example, the mills are not allowed to use

filament yarn in warp in order to protect the interest of art silk and power loom sector

which use this yarn to cater to the affluent section of society.

2.4Textile Industry in Kerala

The first cotton textiles mill was established in 1883 in Kallai near Kozhikode 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 started

in 1884 by James Darragan, an English man using 19 acres of land donated by the

Maharaja of Travancore. In 1888, the mill was sold to another British industrialist

named AT VIN. In 1932 the management was taken over by Kerala Textiles

Corporation. In April 1974, the mill was nationalized under sick textiles undertaking

(nationalization) Act and was made a unit of National Textiles Corporation (NTC)

Limited Bangalore, which is a subsidiary of NTC Delhi. Sitaram Textiles Ltd.,

another oldest mill was established in 1903 as a Private Limited Company. Balarama

Iyyer started it. Later due to mismanagement and labor trouble, company was

liquidated in 1954.

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, Kozhikode, Trissur, Kottayam and Malapuram along with the

commissioning of corporative spinning mill at Alappy with a spindle capacity of 6000

spindles.

Cotton textiles industries are concentrated in district of Trissur and Palakkad

followed by Ernakulum and Kannur. These four districts together account for nearly

3/4th of the spinning mills in Kerala. The numbers of existing composite mills are

quite low i.e., only four in number, its growth during the last 10 years is nil. Due to


17

the unprofitable nature of composite mill, Malabar spinning and weaving mill

discontinued its weaving operation and concentrated on spinning only. Calicut

modern spinning mill once turned sick is now taken over by a financially sound third

party and found earnings before the last, decade. There are 7 cotton textile mills in

Trissur including one composite mill. Kottayam stands last in the list with only one

state owned mill.

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 Trissur corporative spinning mills with an installed spindle capacity of

12,000 spindles is the smallest mill followed by Kathayee Cotton Mills Limited with

14,860 spindles.

Another welcome feature was that a 100% export oriented unit, Past Pin India

Ltd. Started commercial production at Palakkad. These units are located at Palakkad

near Tamilnadu border. Another corporative mill, Allepey 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.

2.5 Industry Competitor Analysis

Indian textile industry is one of the oldest and most significant industries in the

country. It accounts for around 4 per cent of the gross domestic product (GDP), 14 per

cent of industrial production and over 13 per cent of the country's total export

earnings. In fact, it is the largest foreign exchange arning sector in the country.

Moreover, it provides employment to over 35million people. The Indian textile

industry is estimated to be around US$ 52 billion and is likely to reach US$ 115

billion by 2012. The Domestic market is likely to increase from US$ 34.6 billion to

US$ 60 billion by 2012. It is expected that India's share of exports to the world would

also increase fromthe current 4 per cent to around 7 per cent during this period.

Textile industry provides one of the most fundamental necessities of the people. It is

an independent industry, from the basic requirement of raw materials to the final

products, with huge value-addition at every stage of processing. In fact, it is estimated


18

that one out of every six households in the country directly or indirectly depends on

this sector .Here we analyze the sector's dynamics through porter's five-force model.

Competitors in Textile Industry

a. Raymond ltd. Mumbai

b. Grasim Industries Ltd. Nagda

c. S.Kumar. Kolkata

d. Reliance Industries Ltd. Mumbai

e. Mafatlal Industries. Mumbai

f. Arvind Mills Ltd. Ahmadabad

g. Nirmala Fabrics. Thane

h. Ramraj Cotton Mills

i. The Bombay Deying&Mfg Pvt ltd. Mumbai

j. MCR Cotton Mill

a) Threat of New Entrants

Indian Textile Industry is very dependent on personal contacts and experience.

The new actors would have to bring some kind of client base along with the new

establishment. Product differentiation may constitute a barrier of entry as

manufacturers are heavily dependent on references and word of mouth. Without any

established client portfolio it is difficult to attract, endure increased costs in creating

sample collections to show potential customers .Hence, in startup phase costs are not

only associated with the manufacturing required but also with the costs for designers

and creating samples. In the sense of reference dependency, barriers of entry are

considered as very strong. As the new entrant has limited experience in textile

manufacturing and there are no built up relationships with customers, they might

experience disadvantages relative to the established competitors. Governmental

policies do affect the business environment to some extent. An example of this is

subsidies, which are offered to company’s establishing production in certain regional

areas .In addition to these potential barriers of entrance, new entrants may have

second thoughts about entering the new market, if existing manufacturers may

retaliate on new entrants. The Indian textile industry though, has such a large


19

population of manufacturers so any new actors may hardly be noticed by the

competition, which minimizes the risk for retaliation.

b) Bargaining Power of Customers (Demand Scenario)

Global textile & clothing industry is currently pegged at around US$ 440 bn.US

and European markets dominate the global textile trade accounting for64% of

clothing and 39% of textile market. With the dismantling of quotas ,global textile

trade is expected to grow (as permckinsey estimates) to US$650bn by 2012 (5 year

CAGR of 10%). Although China is likely to become the 'supplier of choice', other low

cost producers like India would also benefit as the overseas importers would try to

mitigate their risk of sourcing from only one country. The two-fold increase in global

textile trade is also likely to drive India’s exports growth. India's textile export (at

US$ 15bn in 2005) is expected to grow to US$ 40bn, capturing a market share of

close to 8% by 2012. India, in particular, is likely to benefit from the rising demand in

the home textiles and apparels segment, wherein it has competitive edge against its

neighbors. Hence, the bargaining power of customers is strong. For that reason, it is of

importance for a producer of apparel to differentiate their products or production so it

will not compete with price as primary mean. Differentiation is accomplished either

by quality or service. Differentiation can be considered as especially important in the

Indian textile industry since contracts are usually set on short-term basis and are

rarely set more than six months ahead. Hence, there is a need to tie the customer to

manufacturers without the need of explicit contracts. And thus, the bargaining power

for the Customer is improved.

c) Bargaining Power of Suppliers (Supply Scenario)

India is a country where we have numerous players in textile industry which all

are varied in terms of size and power. There has been increase in production and

supply of textile products in last few decades globally, mainly due to rapidly changing

social and economic structure of the countries worldwide. In past few years,

especially after the removal the trade related tariffs and non-tariff barriers in 2005,

Asian countries such as India, china, Hong Kong and Japan have emerged as major

players in this particular industry, mainly due to their changes on economic front and


20

infrastructure developments. The large number of available suppliers in India gives an

initial indication of a weak bargaining position for the supplier group. Additionally,

the supplier group lacks switching costs and has a low level of product differentiation.

This leads to great possibilities for textile manufacturers to scout the supplier group

for best terms and prices for production. As a result, manufacturers can contact a large

number of suppliers and play suppliers against each other. Such behavior weakens the

bargaining power for suppliers and as a result pushes prices down and makes prices

similar among suppliers.

An advantage which the Indian Suppliers group has capitalized on is, Due to

their ability to integrate forward in value added chain, they have achieved a better

bargaining position towards textile manufacturing. As previously seen, companies in

the textile and apparel sector have established forward to create vertically integrated

company groups. Deep relationships between manufacturers and suppliers illustrate

how important the textile manufacturing industry is for the supplier group. An

example of this is how suppliers and manufactures interact in activities such as

research and development (R&D). By this process the supplier obtains knowledge on

what customers downstream in the value added chain demands.

d) Threat of Substitute Products

Here the Industry is dealing with production and marketing of Lungies, Mull, Bed

sheets, Innerwear’s etc. These products are used for a specific purpose only. So none

of the Different category product can’t be replace the product. There are variations in

types of clothing and material. Variations in textile segment can also be identified as

trends in fashion and styles. Hence products within the apparel segment can act as

substitutes but the general conclusion still stands there’s no substitute products.

e) Competitive Rivalry within the Industry

The textile manufacturing segment in India is made out of numerous

manufacturers which all are varied in terms of size and power. It is a massive sector

with thousands of companies producing apparel. The apparent high growth rate of


21

total textile exports indicates that the rivalry between manufacturers is low. The

growth rate is high in some product segments but even negative in others. Hence, the

rivalry between apparel manufacturers is diverse since they enjoy different growth

rates. Additionally, textile as a perishable product group is in the risk of temptations

to cut prices when demand slackens. For example, when there are recessions in the

business cycle apparel prices will drop significantly in price. Both these factors

exemplify and indicate that the rivalry between manufacturers is high. As Indian

apparel manufacturers are pressured to lower prices in order to stay competitive with

companies abroad, the overall rivalry within the industry gets companies to expand

their customer base in order to keep profits up. It is therefore reasonable to believe

that such expansions may occur on the behalf of competitors if possible, and thereby

increase the rivalry in the industry.


22

Chapter-3

COMPANY PROFILE


23

3 Introductions to ANNA Group of Companies

More than three decades age in 1968, when Mr.M.C.Jacob founded the Anna

Aluminum Company, he made a break with the past. Belonging to an affluent family

of plantation owners, he ventured in to the risk world of manufacturing industry and

hoped for the best, while working very hard to make his maiden venture to a great

success. Today the group is involved in manufacturing of aluminum sheets, circles,

vessels and utensils, spices, and fabric, school bags, garments and marine exports etc.

The ‘Anna’ range vessels and utensils are highly popular in domestic market and in

the Middle East, U.S.A, Africa, and Australia. The group of turnover is around 200 cr.

Anna Group, a multi core success story began in 1968 is now spread heading

the thrust in to the new millennium. From a company devoted to the manufacture of

aluminum vessels and utensils, it involves spices and fabric, school bags, garments

and marine exports. It has emerged as a Multidimensional giant with interest in

various fields ranging from textiles to spices to baggage. Anna Group, where quality

the buzz word has opened new vistas of exciting challenges. Today Anna ranges of

product are very popular in domestic market and overseas.

Anna-Kitex group is one of the leading industrial groups 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

aluminum, Chackson and Saras. The Anna-Kitex group is a pioneer in the fashion

industry Anna Group, Where quality - the buzzword - has built success.

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:

a. Kitex Limited

b. Anna Aluminum Company (Chackson)

c. Sara’s spices


24

http://annagroup.net/products.php?c=1

d. Kitex Garments

e. Scoobeeday products pvt ltd

3.1Kitex Limited

Anna Group’s weaving unit, Kitex Limited was established in 1975. The company is

engaged in the production of fabrics made of cotton and other blends, grey cloth, bed

sheets and lungies. Through the years, the company has carved a niche for itself in

this highly competitive industry with its tradition of world class quality.

Kitex is engaged in production of fabrics made of cotton and other blends,

grey cloth, bed sheets and lungies are available in four various types-Executive,

Medium Super, Medium and Economy all are priced differently. Kitex white gives us

an array of white dhothies single as well as double. It becomes with streaks of colors

and gold to add to the looks our dhothies. We also have beautiful and wide range of

bed sheets under the label of Sweet Dreams. Through the years the company has

carved a niche for itself in this highly competitive industry with its tradition of world

class quality.

Kite has a well-organized production department and is committed to cent

percentage quality in all the production process. In the production department Kitex

has 383 power looms and 22 automated loom. There are about 390 workers in the

plant. They use both automated and power looms in the production process. The

annual sales range is in between US $10 million – US $50 million. Kitex follows a

line organizational structure and their span of management is narrow due to this they

have the advantage like reinforcing authority relationship by emphasis of status given,

preventing cross communication etc.

Kitex products are marketed through 2000 authorized dealers. Kitex fabrics

are now exported to many parts of the world. Kitex is going in for a major expansion

plan to augment the production capacity. At the dawn of the new millennium Kitex

entered in to the luggage and baggage industry under the brand name of scoobeeDay.


25

VITAL STATUS

Name : Kitex Limited

Address : Kizhakkambalam, Aluva

Registered Office : Kizhakkambalam

Nature of the incorporation: privet Limited Company

Nature of Business : Manufacturing of cotton textiles & bag

Nature of Product : Industrial Products & Consumer Products

Brand Name of the Product: Kitex

Total Built up area : 16, 50,000 sq.feet,

500 modern looms,

20million sq.meter of cotton, & cotton Blends.

Employment potential :1400

Production Capacity : 3,500 sq.per day

Total Capital Employed : Rs 3, 39, 01,060

Annual Sales Range : 200 crores

Growth : Steady

Founder : Sri: M.C.Jacob

Chairman : Mr Bobby.M.Jacob

Director : Mrs: Mini Bobby Jacob

Managing Director : Mr Sabu jacob

Auditor : Mr. Anil Kumar & Co

Banker : Federal Bank, ICICI, Canara Bank


26

ISO CERTIFICATION

Kitex got ISO 9001-2000 IN February-2007. They are committed to manufacture

and deliver quality. Kitex Limited is the leading manufacturer with ISO 9001 - 2000

in South India of all varieties of Greige Fabrics, Yarn dyed fabrics, Dobby and Leno

dobby fabrics made of Cotton, Polyester cotton, Cotton Nylon, Cotton Flax, Linen,

Cotton Linen, Cotton Lycra, Polyester Lycra etc. They can do any weaves / qualities

like cambric’s, sheeting’s, poplins, mulls, casements, drills, twills, linos, satins, bed

fords, oxfords, stripes etc. They have 525 running Looms of Sulzer, Picanol, Dornier

& Cimmco making around 13,00,000 Mtrs of fabrics every month.

They are the leading manufacturer with ISO 9001 - 2000 in South India of all

varieties of Greige Fabrics, Yarn dyed fabrics, Dobby and Leno dobby fabrics made

of Cotton, Polyester cotton, Cotton Nylon, Cotton Flax, Linen, Cotton Linen, Cotton

Lycra etc

Fig 3.1. Vision and Mission


27

World Class Manufacturer

Leadership, Teamwork

Quality, process and people

Policy strategyCustomer

3.1.1Vision of KitexLtd

a. To reach the excellent quality standards in the coming year

b. To keep in place with modern technologies and concepts

c. To organize supply of materials with minimum cost to maximum extent

possible without any compromise in quality

d. A world class manufacturing company focusing on all round business

excellence through Total Quality Management System with committed

leadership effective team work delighted customers and satisfied

employees in an environment friendly organization.

3.1.2Mission of Kitex Limited

Fabrics and processed fabrics as per the customer specification efficiently in a

professional and environment friendly manner, on time, and at the right cost with at

most customer specification to become a world class organization through

improvement.

Objectives

1. Increase sales of value added item by 20% from the existing level.

2. Reduce rejection by 10% from the present level.

3. Reduce customer complaint by 10%.

4. Increase product range by introducing new inner garments

3.2Product Details

3.2.1 Lungies

a. Executive

Superior quality lungies available in various designs and colors.

b. Medium Super

Comfortable lungies you would love to drape. Available in various designs

and color combinations.


28

c. Medium

Experience freedom and coolness with Medium range of lungies; comes to

you in warm colors and in various designs.

d. Economy

After a hard day’s work, jump into lungi to ease your tension, to sooth

your senses and to feel relaxed.

3.2.2 Dhothies

a. 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.

b. Smartline Gold

Cream color single dhothy with streaks of Gold Jerry lines for special

occasions.

c. Ready wear

Plain white single dhothy you'll love to drape. The anywhere, anytime

wear.

d. Samrat

Pure cotton white double dhothy with lines in 5 different colors to choose.

3.2.3 Bed Sheets

Following are the types of bed sheets

a. Sweet dreams 50

b. Sweet dreams 60

c. Sweet dreams double sheet

d. Dbl.Side 60 bed sheet + 2 pillow covers

e. Solitude double sheet

f. Sweet dreams king knight

g. Duplex / solitude bed sheets + 2 pillow covers

h. Soft dreams king size + 2 pillow covers

i. Sweet dreams DS + 2 pillow covers


29

3.2.4 Scoobee Products

At the dawn of new millennium the new generation was presented with an innovative school

bag from Kitex, the main offshoot of Anna Group. ScoobeeDay bags are compactly designed

with unique features that make it durable, colorful, comfortable and easy to carry. The bag

features anti strain shoulder padding’s and acupressure buds specially designed to minimize the

strain on the back and shoulders.

Following are the types of bags:-

a. School Bagsb. College bagsc. Kinder garden bags

3.2.5TrawelldayBags

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

a. Trolley bags

b. Travel bags

c. Business bags

d. Lap- top bags

e. Back- pack bags

f. Beauty case bags

3.2.6 Dago Bert Shirting and Suiting

Dago Bert Shirting and Suiting are woven from the finest cotton, using the toughest materials

that are soft to touch when draped on your body. Featuring the most contemporary designs

along with the latest weaving techniques, Dago Bert Shirting and Suiting are available in

variety of colors and shades.

3.2.7 Agna and Adonis Inner Wear

Kitex has made its foray into the untapped lingerie segment with brand names Adonis

and AGNA. ADONIS-inner wear for men and AGNA- inner wear for ladies, with


30

Anna group promise of quality, both comes competitively priced and ensure complete

value for money. 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

3.3 Organization Structure

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.

An efficient management system plays a dominant role in the success of all

business units. It is this section that declares the levels of output, its product in

pattern, pricing technique, marketing style and even the mode of conduct to its

executives.

Managing director who are the representatives of the shareholders 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.

The middle level management comprises of production manager, marketing

manager, financial manager, personnel manager and purchase manager, and store

manager and quality controller.

Average Qualification of Employees

a) Top Level: Professionally qualified having sufficient industry experience.

b) Middle Level: Graduation and above with experience in the relevant areas (both

technical and managerial)


31

c) Junior Level / First line management: Diplomas / industrial training certification

in the textile industry and experience.

CHAPTER 4

ORGANIZATION CHART


32


33

Man

ager

Pe

rson

Asst

.man

ager

Man

ager

ex

ecuti

ves

Gen

eral

M

anag

er(M

arke

ting)

Gen

eral

Man

ager

Exec

utive

Exec

utive

Man

ager

Fi

nanc

e

Man

ager

Ad

min

istr

ation

Man

ager

Pe

rson

nel &

Ad

min

istr

ation

Man

age

r

Stor

e M

anag

erPu

rcha

se

Man

age

r

Qua

lity

Insp

ecto

r

Assi

stan

t In

spec

to

Qua

lity

Man

age

r

STRU

CTU

RE O

F

THE

ORG

ANIS

ATIO

N

Assi

stan

t O

ffice

r

Purc

hase

O

ffice

rO

ffice

As

sist

ant

C h a i r m

Fina

nce

Man

ager

CHAPTER 5

THE DEPARTMENTS


34

Prod

uctio

n M

anag

er

Shift

In

char

ge

Wor

ker

s

Supe

rvi

sor

6.2 Suggestions

a. Provide risk free and modern methods of money transaction

b. Give sufficient training to the employees

c. 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.

d. Promote quality circles

e. Provide more employee empowerment

f. Expand the distribution to rural areas also

g. Complete the computerization process

h. Introduce more modern looms


35

8. CONCLUSIONThe study was conducted at Kitex Ltd, Kizhakkambalam, Aluva. 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

good knowledge about the market position of the company. The cooperation and

interaction extended by the employees and management of Kitex have made it

possible for the depth organizational study which would be used to the research in the

future.


36

BIBLIOGRAPHY

Company Profile.

Company Manuals.

Production Management (Aswathappa).

Production Management (Edwin.b. Flippo)

Marketing management ( Philip kotler)

Websites

www.textileindustry.com

www.annaaluminium.com

www.kitexltd.com


37

http://www.kitexltd.com/

http://www.annaaluminium.com/

http://www.textileindustry.com/

kitex lmt organisation study

Education