Os Kitex Original

Chapter: 1
INTRODUCTION
Albertian Institute of Management
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INTRODUCTION
Organization is a social unit which is deliberately constructed and
reconstructed to seek specific goals. An organization comes into existence
when there 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 fulfil 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 is to 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
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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.
Need 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:
Type of business performed by the company and its nature.
Various functions and operations of the company.
To know the market position of the organization.
Production process performed by the company.
Financial and the accounting patterns of the company.
Human resource management of the company.
How a company is working successfully in such a competitive scenario.
This Organization study also helps to have a clear understanding on
various practical applications of the theories which we learned in the text
books.
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OBJECTIVES OF STUDY
To familiarize the students with a business organization to relate theory
with practice.
To familiarize the student with an organization structure and its
functioning.
To familiarize them with the different departments in the organization
functions and activities including documentation.
To enable the student to understand how the key business and processes
are carried out in an organization.
To understand how information is used in organization for decision
making at various levels including data flow diagram.
To conduct a short analysis of the organization.
To study the financial performance of the organization by doing
financial analysis.
Scope of the Study

The internship training was intended to provide industrial exposure to
the trainee and bridge the gap between theory and practice. This study was
only covered the few departments of KITEX LTD namely personnel &
administration, finance, marketing, production, purchase departments was
intended only for a period of one month from 1st May 2015 to 31 May 2015.
The study was mainly conducted to understand the functions, process and
procedures of different departments of the company. This training report
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covers the details of the departments in which the trainee could get access
and interact with responsible executives.
Methodology
This study was a descriptive study conducted mainly to familiarize with
the activities, processes, policies, programs and procedures followed in the
firm. Required data for the study was collected through monitoring
interrogation. The study is made personally visiting the company at
Kizhakkambalam; the data were collected through various methods.
The methods adopted mainly are:
Primary Data
Primary data collected through discussion with manager, various
department heads, officers and employees.
Secondary Data
Secondary data for the study was collected from internal annual
reports, website, and office records were used for collecting relevant
information for this study and from external sources. Internal records like,
annual reports, website, office records, management reports, house
magazines used for collecting relevant information for this study. The data
needed to prepare this study was obtained from other published sources like
internet, magazines, business dailies, journals and business magazines.
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Limitations of Study
The researcher is beginner in the field.
Detailed study could not be performed due to time constraints.
Confidential data was not available.
Most of the interactions with the management personnel wear within
the peak time office time which would have let to biased decisions.
Unavailability of financial datas restricted me to analyses the financial
position of the company.
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CHAPTER: 2
INDUSTRY PROFILE
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INDUSTRY AND EVOLUTION

New innovation in clothing production, manufacture and design
came during the industrial revolution- these new wheels, looms and
spinning process 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 Stage was the first stage in history where textiles 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 export made at that time doubling in the period between 1701
and 1770. The center of cotton industry in Great Britain was Lancashireand 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 flyerand- bobbin system, and the Roller Spinning Machine by John Wyatt and
Lewis Paul in 1738.
During this period cloth was made from material 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 comes to be regarded as
imported fibre. During the later phase of the 16th century cotton was grown
in the warmer climes of America and Asia.
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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 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 steam engine was invented, the
dependence on the rivers ceased to a great extent. In the later phase of the
20th century, shuttles that were used in the textiles industry were developed
and become 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 offering almost any type of cloth or
design a person could desire. With its low cost labour base, China has come
to dominate the Global Textile Industry.
GLOBAL SCENARIO
According to the 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.
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Japan, India, Hong Kong and China became leading producers due to their
cheap labour supply, which is an important factor to the industry. The World
Trade Organization (WTO) has taken many steps for uplifting this sector.
In the year 1995, WTO has 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. Moreover the
role of multifunctional textiles, eco- textiles and customized textiles are
considered as the future of the textile industry.
INDIAN SCENARIO
Textile industry in India, the second largest employment generator after
agriculture, 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 teams that it is an independent industry,
from the basic requirement of raw material to the final products, with huge
value of 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 sectors& rural and urban areas,
particularly for woman and the disadvantaged, Indian Textile Industry is
constituted of the following segments: Readymade Garments, Cotton
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Textiles including Handlooms, Man- Made Textiles, Woollen Textiles,

Handicrafts, Coir and Jute.
Till the year 1985, development of textile sector in India took place in
terms of general policies. In 1985. For the first the importance of textile
sector was recognized and a separate policy statement was announced with
regarded to development of textile sector. In the year 2000, National textile
policy was announced its main objective was to provide cloth of acceptable
quality of the 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 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.
STRENGTH OF INDIAN TEXTILE INDUSTRY

India has rich resources of raw materials of textiles industry. It is one of
the largest producers of the cotton in the world and also rich in
resources of fibres like polyester, silk, viscose, etc....
India is rich in highly trained manpower country has a huge advantage
due to lower wage rates. Because of low labour rates the manufacturing
cost in textiles automatically comes down to very reasonable rates.
India is highly competitive in spinning sector and has presence in
almost all processes of value chain.
Indian garments industry in very diverse in size, manufacturing facility,
and type of apparel produced quantity and quality of output, cost,
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requirements of fabric etc... It comprises suppliers of readymade

garments for both domestic or export markets.
WEAKNESS OF INDIAN TEXTILES INDUSTRY

Indian textiles industry is highly fragmented in industry structure
and it is lead by small scale companies. The reservations of
productions for very small companies that was imposed with
intention to help out the small scale companies across the
country, led substantial fragmentation that distorted the
competitiveness of industry. Smaller companies do not have
fiscal resources to enhance technology or invest in the high-end
engineering of process hence they lose in productivity.
Indian labour laws are relatively unfavourable to the traders and
there is an urgent need for labour reforms in India.
India seriously lacks in trade pact memberships, which lead to
restricted access to the other major markets.
STATE SCENARIO
The southern states have a rich legacy of traditional textiles. They are
the irrefutable textiles maharajas of the country, churning out evitable
stunning silks and cotton that are lapped up by people all across the
continent the textile industry generate huge revenues for Kerala.
Thrissur is famous for the textile industry. Thrissur is also famous for
its hosiery mills. Lakshmi mills of Pullazhi, Rajagopal textiles of Athani,
Alagappa textiles of Alagappanagar are famous for their textile industry.
Besides weaving saris, Kerala also produces premium quality lace and
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embroidered goods it is usually done by woman artisans. Caps are produced

in bulk at Kasargod which then exported to gulf and African countries.
Kannur, around 350 km north of Kochi, is Keralas leading textile export
hub. Its export of textile product is worth around Rs. 3 billion a year,
according to industry sources.
As the US dollar weakens against the rupee, the going is getting
tough for textile exporters here the dollar, which fell around 15 percent from
March this year, has burned Rs 450 million ($11.4 million) whole in the
pockets of exporters. Kannur has around 40 textile export units the sector
employs around 50000 people in the district.
The major competitors are MCR, ANGEL, JANSON, RAMRAJ
etc
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CHAPTER: 3
COMPANY PROFILE
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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
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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.
b.
c.
d.
e.
Kitex Limited
Anna Aluminum Company (Chackson)
Saras spices
Kitex Garments
Scoobeeday products pvt ltd
Kitex Limited
Anna Groups 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
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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.
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VITAL STATUS
Name
Kitex Limited
Address
Kizhakkambalam, Aluva
Registered Office
Kizhakkambalam
Nature of the incorporation:
Private 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,

800 skilled workers.
Employment potential
1400
Production Capacity
25000 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
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Managing Director
Mr Sabujacob
Auditor
Mr. Varma & Varma Co
Banker
Federal Bank, ICICI, Canara Bank
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 cambrics,
sheetings, 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 Metres 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.
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LOCATION OF THE COMPANY

The company is located at Kizhakambalam, Kerala, the nearest
municipality is Aluva. The location is connected only by road.
VISION
World Class
Manufacturer
A world class manufacturing company focusing on all round business
excellence through a Total Quality Management (TQM) system with
committed leadership, effective team work, delighted customers and
satisfied employees in an environment friendly organization.
Leadership, Team work and TEI

Quality Process and People
Policy Strategy
Customer
Future Visions of Kitex Limited

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To reach excellent quality standard in the coming years.

To keep in pace with modern technologies and concepts.
To organize supply of material at minimum cost without any
compromise in quality.
MISSION
To manufacture fabrics and proceed fabrics as per the specification
efficiently in a professional and environment friendly manner, on time and
at the right cost with high customer satisfaction to become a world class
organization through continuous improvement.
QUALITY OBJECTIVE OF KITEX LIMITED

Increase production by 60% from the present level by adding essential
machinery, manpower and solving space constraints.
Reduce the specific fuel and electricity consumption by 10%.
Reduce the customer complaints by 50% improving quality products
and services.
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QUALITY OBJECTIVES
Bag Division
To increase the sales quantity of school bags by 10% with respect to the
sales quality of the previous year.
To reduce the customer complaint by 10% with respect to the previous
year.
Garment Division
To increase the capacity utilization by 25% from the existing level.
To increase the numbers of dealers by 25%.
QUALITY POLICY
We are committed to manufacture and deliver quality fabric, bags and
readymade garments as per the customer specification and requirements,
efficiently in professional and environment friendly on the time and at most
customer satisfaction while during to become a world class organization
through continuous improvement.
POLICIES OF KITEX LIMITED

Consumer satisfaction
Social obligation
Quality and standard products for domestic customers
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Profit maximization and consistency in profitable levels

Optimum utilization of men, material and machine
Employees growth and satisfied work force
Consistent and diversified growth
Optimum inventory control
Production through environmental friendly and safer methods
Effective management practice and cost control system
QUALIFICATION OF EMPLOYEES
Top level: Professional qualified having sufficient industry experience.
Middle Level: Graduation and above which experience in relevant data
(Both Management and Technical)
Junior Level: Diploma/ Industrial training certification in textile
industry experience.
ORGANIZATIONAL
CONTRIBUTION
TO
SOCIETY
CORPORATE SOCIAL RESPONSIBILITY

As part of the organizations contribution towards the society, the
Kitex Ltd Provides:
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The company provides employment opportunity to about 2000 people.
It also provides good working environment to the workers and also

ensures their safety and interest.
The goods produced are eco-friendly and do not cause any harmful
hazards to the environment.
An ambulance service is provided to all BPL families of
Kizhakambalam, Grama Panchayath.
COMPETITORS
From the marketing department, we can get an idea about their
products marketing strategies, strength and weakness, competitors strategy,
attraction. Major competitors are MCR, Angel, Janson, VBC, KKB, Ramraj
and others. The competitors strategies are advertising promotion through
film stars. This is very high in the case of MCR. In case of MCR dhothies a
large veariety of Karas have been introduced in the market. They also sell
different colors 141 lungies in market for attracting customers. In case of
Kitex Limited the margin is comparatively low. The major problem of
competitors are poor color dyeing, poor quality etc, compare to toKitex
product other products are cheaper. Most of the customers choose Kitex
products because of its quality, most of the customers choose other products
because of the higher price of Kitex products.
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Kitex products achieve maximum shares in the period festivals like

Onam, Christmas, Ramsan, Vishu etc. in normal case profit margin of
products is 15% to 25%. In case of technical campaign Kitex introduced
new weaving seulzer looms which are imported from Switzerland.The only
competitors having this type of technology are Janson. The quality image
and brand image of Kitex products in the market is very high.
OWNERSHIP PATTERN & LEGAL FRAME WORK OF

THE ORGANIZATION
This is a private limited company with three Directors most of the
shares are held by them. Kitex is limited to the extent of face value of shares
contributes by them.
ORGANIZATIONAL HIERARCHY
Kitex limited follows the line or military organization structure.
Managing director is the top level. Other functional mangers followed by
them. The span of control of the organization is narrow spans. 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 superiors. The model of the organizational design is a mechanistic
model. An efficient management system plays a dominant role in the
success of all business units.
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It is the section that declares the level of output, its product in pattern,
pricing technique, marketing style and event mode of conduct of its
executives. The chairman and the managing director who are the
representatives of the shareholders take the import decisions of the group
concerns. They perform strategic planning and policy making function of
Kitex Limited for their health, the General manger, top executives of the
companys management are appointed.
General manger is responsible for the smooth, efficient and
productive functioning of the unit, from the production to the marketing.
The middle level management companies of production of production
manager, marketing manager, finance manager, personnel manager,
purchase manager, store manager and quality controller.
PRODUCT PROFILE
Kitex is engaged in the production of all varieties of grey fabric made
of 100% of cotton. The products manufactured by the company are
industrial goods and consumer durable goods. 85% of the goods (Grey
Cloth) are sold as such other companies per production units in the textiles
and garments.
15% of the cloth manufactured by the company is converted into
Lungies, Dhothies, Mulls and Bed Sheets. Various units in Tamil Nadu do
these conversions. This conversion process includes resizing, mercerized,
bleaching, printing, dyeing etc.
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The products sent for processing will take one and half month for
completing the cloth and then packed to make it ready for dispatch.
PRODUCT GALLERY
Lungies
Executive
Medium Super
Medium
Economy
Dhothies
Smart Line
Smart Line Gold
Ready Wear
Smart
Bed Sheets
Sweet Dreams 50
Sweet Dreams 60
Sweet Dreams Double Sheet
Duo/Sd 60 bed sheet + Pillow covers
Solitude double sheets
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Sweet Dreams King Knight

Duroflex / Solitude bed sheet + 2 Pillow covers
Soft Dream King Size + 2 Pillow covers

Sweet Dreams DS + Pillow Covers
Scoobee Products
School Bags
College Bags
Travel Bags
Ladies Bags
KITEX BAG DIVISION

At the dracon of new millennium, Kitex entered into baggage and
luggage industry under the brand name Scoobee Day and Trawell Day
respectively.
Kitex have a wide variety of travel bags, trolley bags, business bags,
laptop bags and back bags under the same name of Tra well Day. The
factory is engaged in continuous production of bags and quality of 14 lakhs
of bags came out last year. The fabrics for bags are mainly imported from
China; Taiwan etc. sample for the design may be brought from outside the
country to produce the best quality design that can be matched with other
international brands. New designs for bags are sketched using computers by
various experts in the department. The production is carried out on
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continuous basis. After the final stitching of bags each unit is taken
separately for a strict
quality check. Besides that random checking is also 5ade by quality control
system. Imported and domestic machineries are used in the factory which
can function continuously without any break. Computer programmed
machines are also used in the plant which can perform multiple tasks. The
factory run on the shift from 8.30 am 6.00 pm. At the time of season the
work starts at 8.00 am and is continuously up to 9.00 pm. In such cases
overtime allowance is given to the workers. There is no stiff competition for
scoobee day bags in the field of school bags. The bags are supplied in
Kerala and Tamil Nadu a share is expected to middle east. The company is
expecting a sale of over 15 lakh units of bags in the current financial year
and they are also very keen to introduce newer models of the brand to the
ultimate customers.
Scoobee Day
At the dracon of new millennium the new generation was presented
with an innovative school bag from Kitex, the main offshoot of Anna
Group. Scoobee Day bags are compactly designed with unique features,
antistrain shoulder paddings and acupressure bud specially designed to
minimize the strain on the back and shoulders. Scoobee day from the house
of Kitex has a wide range of school bags which became an instant hit, and
Scoobee became a close companion to all school going kids. With shoulder
strap cushion and rear padding for added comfort, Scoobee day bags come
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in various odour combinations. Using ribs top fabrics and leak proof
materials. Scoobee day are attractively priced. The unique features include
special pouch, water bottles, Tiffin boxes and even a secret pocket.
Features of Scoobee Day Bags

Made from imported Dinner Nylong for durability.
Shoulder strap cushion to prevent shoulder pain.
15 different colorcombination.
Soft padding and acupressure 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.
Special leak proof Tiffin box price at attractive price.

Bags for college and travel purpose also available.
Scoobee Day: My Friend
One of the reason to this brand is hot among children is the brand
phonetic resemblance to the popular comic character Scooby Doo. All the
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credit behind the success of the product goes to advertising division of

Scoobee day bags. Scoobee day was adopted the strategy of hooking the
kids. The brand name itself was a hit and there was something more.
The brand told a story, the hero of the story was a mascot- a bee
named Scoobee. Scoobee day is positioned as the best friend of kids.
The brand all through it is a story has told stories how scoobee helps
the kids in distress, fighting those monsters who tried to attack kids. The
brand also has the tagline Scoobee Day En Changathi (in Malayalam
translated t scoobee day my friend). The brand told consistent stories which
involved kids being chased by dragons.
PRODUCTS IN SCOOBEE DAY

Romeo
Gypsy large and medium
Pride
Challenge large and medium 26
Promise large, medium and small
Liberty large, medium and small
Stylo large, medium and small
Twinkle
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Delight large, medium and small

Hip top large, medium and small
Hero plus large, medium and small
Nova plus
Spark large , medium and small
TraWell Day BAGS

The renowned Anna Kitex group, manufacturers of high quality
consumer products forged into the travel bag dement with its Trawell day
bags- wide range of luggage and baggage products.
Coming up with the latest design and models these travel luggage needs are
designed to meet the modern trends of requirement of these customers.
Made from the imported materials, the bags are available is attractive and
different color combinations.
TraWell Day Offers

Travel bags
Trolley bags
Business bags
Laptop bags
Back- pack bags
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Beauty case bags
KITEX LUNGIES
Executive: superior quality lungies available in various designs and
colors.
Medium Super: comfortable lungies would love to drape. Available in
various designs and color combinations.
Medium: experience freedom and coolness with medium range of
lungies, come to you in warm color and various design.
Economy: after a hard day of work, fump into lungies to ease your
tension, to smooth your senses and to feel relaxed.
KITEX BED SHEETS

Sweet dreams 50: Beautiful bed sheets available in beautiful designs
and pleasant to suit bed rooms.
Sweet dreams 60: Beautiful king size bed sheets available in beautiful
design and pleasant colors to suit our bed rooms.
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MULL
NAME
LENGTH
PRICE
Economy
127
48
Medium
128
60
KITEX DHOTHIES
Smart line: while single dhothy with streaks of either dark red blue or
dark green lines; which can be worn equally at home and outdoors.
Smart line gold: Cream color single dhothy with streaks of gold cherry
lines for special occasions.
Ready wear: plain white single dhothy you will love to drape anywhere
anytime wears.
Smart: pure cotton white double dhothy with lines in 5 different colors
to choose from.
DAGO BERT
Kitex also introduce shirting and suiting in the market under the
brand name Dago Bert. Material used for the shirting is pure cotton and for
suiting is polyester mix viscose. Dago Bert shirting and suiting are woven
from the finest cotton, using the toughest materials that are soft to touch
Page 34
when draped on your body. Featuring the most contemporary designs along
with the latest weaving techniques, Dago Bert shirting and suiting are
available in a variety of colors and shades.
ADONIS & AGNA (INNER WEAR)

Kitex has made its foray into the untapped lingerie with brand name
Adonis &Agna. Adonis- inner wear for men and Agna- a range of refined
vests and brief: Agna a range of bras and panties ensures seamless fit and
finish. Both brands are specially processed fabric which fells smooth and
healthy even on soft skin of new born.
VITAL STATISTICS
Name
Kitex Ltd.
Address
Kizhakambalam, Aluva, Ernakulam
Registered Office
Kizhakambalam
Nature of the Company
Consumer and Industrial Products
Founder
Mr. M. C. Jacob
Director
Mr. Boby Jacob
Auditor
Varma and Varma
Bank
Federal Bank. ICICI, Axis Bank
Total capital employed
4 Crore
Page 35
Brand Name
Kitex
Employment Potential
2000 Workers
Number of Machine
654 Machines
Vision of Kitex Ltd

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.
Mission 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.
Page 36
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
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)
c) Junior Level / First line management: Diplomas / industrial training
certification in the textile industry and experience.
Page 37
CHAPTER: 4
ORGANIZATION STRUCTURE
Page 38
ORGANISATIONAL 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.
Page 39
Page 40
Assistant Ofcer
Manager Personnel & Administration
Asst. Manager
Manager executives
Executive
ExecutiveManager Administration
Manager Personnel
Manager Finance
Finance Manager General Manager
Manager executive
Purchase Ofcer
Ofce Assistant
Purchase Manager Store Manager
General Manager
Vice President
ORGANISATION
Chairman & M.D
The middle level management comprises of production manager,
marketing manager, financial manager, personnel manager and purchase
manager, and store manager and quality controller.
Page 41
CHAPTER: 5
THE FUNCTIONAL DEPARTMENTS

Workers
Assistant Inspector
Supervisor
Shift In charge
Quality Inspector
Quality Manager
Production Manager
FIG 3.1
Finance and Accounts Department

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.
Functions of Finance Department

The activities expected from a finance department cover a wide range
from basic bookkeeping to providing information to assisting managers in
making strategic decisions. What to expect from your finance department
Page 42
will depend largely on factors such as how much involvement the

owner/manager has in the organization.
At the base level, your finance department will be responsible for all the
day to day transactional accounting for the business. This will include the
tracking of all transactions and the management of any government
reporting. In very small owner-managed businesses this role is often filled
by a family member with accounting experience.
An outside accounting firm is usually used for annual financial

statements and returns. In larger organizations this role will extend right
through to preparing the financial statements with an external auditor
engaged for assurance purposes.The finance department is also responsible
for management of the organizations cash flow and ensuring there are
enough funds available to meet the day to day payments. This area also
encompasses the credit and collections policies for the companys
customers, to ensure the organization is paid on time, and that there is a
payment policy for the companys suppliers. In most organizations there
will be some form of forecast prepared on a regular basis to systematically
calculate the ongoing cash needs.
Where there are cash needs beyond the day to day working capital, the
finance department is responsible for advising and sourcing longer term
financing. Financing may be obtained though bank or private lender debt
or, in applicable firms, share issues to private investors. If the organization
is ready to target angel investors or venture capitalists the finance
department will be key in preparing the documents required for these
Page 43
presentations and may work with outside consultants on a company

valuation. In larger firms considering public share offerings the finance
department will assist with the preparation of the offering documents but
will likely also use outside consultants to advise on this complicated
process.
With the must-dos taken care of, the finance department can now start
to contribute to the management and improvement of the operations by
measuring and reporting regularly on key numbers crucial to the success of
the organization.
Management accounting information is information that managers can

use to monitor the operations and decide where further attention may be
required. It will likely include some non-financial information and should
be communicated to managers in a way that is easy to understand. In
smaller owner-managed businesses this resource, though extremely
important, is often overlooked or ignored.
Looking forward, the finance department will work with managers to
prepare the organizations budgets and forecasts, and to report back on the
progress against these throughout the year. This information can be used to
plan staffing levels, asset purchases and expansions and cash needs, before
they become necessary. Some organizations often plan by the seat of their
pants, while organizations know it is important to have some idea of where
you want to go before you start going there.
Finally, the finance department should be called upon to provide
information to assist managers in making key strategic decisions, such as
which markets or projects to pursue or the payback periods for large capital
Page 44
purchases. The finance department can often contribute an objective

perspective based on special financial assessment techniques.
In summary, some organizations know the finance department should
be considered a resource to assist managers in the running of the business.
With the growing popularity of outsourced finance departments, it is
possible for even small businesses to have access to all of the benefits of a
full finance department, through part time professionals, at a fraction of the
cost of employing a full time finance department.
a. Recording day to day business transaction accounting

b. Preparation of various statements regarding stock, receivables
etcwhich are to be submitted to various authorities like
bankers, insurers etc
c. Planning and controlling of the expenses or funds for production
d. Approving and making payments to different parties or creditors
or suppliers
e. Receiving payments from customers or dealers in specific time
f. Raising short term loan or credit from bank and other financial
institutions
g. Preparation of sales budget or revenue budgets and expenditure
h.
i.
j.
k.
budgets on a quarterly basis

Preparation and maintenance of costing records
Preparation of fund flow and cash flow statements every month
Timely preparation and filling of financial reports and records
Preparing and filling of quarterly and financial income tax
returns
l. Preparation and implementation of cost reduction and cost
control programs
Page 45
In addition to the above mentioned works, the following reports prepared by

the finance department
a. Annual reports containing past performance and current financial
b.
c.
d.
e.
f.
g.
h.
i.
figures
Profit and loss account
Balance sheet
Fund flow statement
Cash flow statement
Cost sheet
Cost variance report
Bank reconciliation statement
Comparative statements
j. Budget reports etc
Functional Areas of Financial Department in Kitex

a. Determine financial needs
b. Determining sources of funds
c. Financial analysis
d. Optimal capital structure
e. Cost volume profit analysis
f. Profit planning and evaluation
g. Capital budgeting
Page 46
Chairman &
Managing
Director
General
Manager
Manager (Finance)
Manager
(Accounts)
Assistant Manager
Assistant
Manager
Executive
(Data
Entry)
Executive
(Bank)
Cashier
Executive
(Tax)
Exec
utiv
e
(Cen
Page 47
Fig 4.1 Structure of Finance Department
Production Department
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.
Functions of Production Manager

a. To produce good quality fabrics in accordance with the requirements
and maintain high productivity standards
b. Raw materials, industrial scheduling and co-ordination with purchase
department
c. Prescribing required quality control measure and implementing the
same
d. Arranging dispatch of fabrics, process as per the requirements of sales
department
e. Arranging recruitment
through
personnel
and
department and arranging training for required personnel

Page 48
administrative
f. Implementing perceptive maintenance style for equipments and

machines installed.
Functions of Production Department

The following are the main functions of production department.
a.
b.
c.
d.
e.
f.
g.
Design of product
Design of production system
Production planning and control
Layout of plant
Selection of location
Selection of plant and equipment
Research and development
Production Capacity Utilization and Modernization

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
Page 49
Modern Sulzer Looms are operated by qualified and highly

experienced personnel. They are hired from other textile mills and paid
well. Other workers are trained to operate the modern looms under the
experienced worker.
Ordinary power looms required two persons per loom. Two modern
looms require one person. That means 505 of labor 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.
Raw Materials Used for Production

100 % cotton yarn of different specification for different variety of
Greige cloth from the major raw materials used in the production. The other
raw materials are sizing chemicals, starch adhesives. All these form of
direct materials for production the other indirect materials are different
consumable stores, spares, cleaning chemicals.
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
The process of textile industry is broadly divided in to two:Albertian Institute of Management
Page 50
a. Spinning
b. 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 dhothies
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
preparation. It is the heart of weaving mill in the preparatory department the
yarn undergoes the process namely
a. Warping
b. Sizing
c. Beam Draw-In
d. Pirn Winding
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e. Weaving
f.
g.
h.
i.
Folding
Recounting
Grading
Bailing
a) 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.
Sizing (to weave well and size well)

It is the process of strengthening the yarn wound on beam (warp). In this
process, the warp is passed through sized chemicals, which are mainly
starch and other adhesives. This process makes the yarn more rigid and this
prevents from breaking while weaving. The purpose of sizing is to ensure
processing of warp in looms with minimum breakings.
b) Beam Draw-In
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The warp from sized beam is first drawn through dropped wires,
healds and clothes 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.
c) 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 faults. After winding, the yarn has more uniform and balanced
structure. There are two types of winding machines in this company.
-Automatic pirn winding machines
-Circular pirn winding machines
d) 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
Page 53
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.
e) Folding
After classified the fabrics is folding by machine (1 meter
pinning) and counting the meter length and marked.
f) Recounting
The meter length is again recounted and assured the fabric and
sealed and gone for bailing.
g) Grading / Sorting
In the quality department, the following operations are carried out
-Sorting or grading of Greige fabrics
-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
h) 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.
Page 54
Production is undertaken on the basis of orders received for Greige

cloth. Since the company is having regular orders, there is a continuous
production throughout the year. About 85 % of the Greige cloth produced is
selling as such to parties. The remaining portion of the Greige clothes
produced is converted in to lungies, dhothies, bed sheets and mulls. These
are selling to the ultimate consumers through a dealer network of more than
1600 in numbers spreads all over Kerala and Tamil Nadu. The companies
processing work is doing by various textile dying and printing units in
Erode, Tirupur and Ahmadabad. The conversion process includes bleaching,
dyeing, resizing, printing etcAfter the work is done, and different
varieties of goods are recovered back quality checked, packed and marketed
by the company.
Safety is of greater importance in any industrial undertaking. The
company has established safety measures as provided in the Factories Act,
1948. The company regularly conducts safety awareness programs and
training classes for its plant workers and supervisors. The production units
have several safety mechanisms like fire fighting equipments, alarming
systems, first aid facilities etc The company has its own ambulance
service to face any emergency. As a result of the strict safety measures
adopted, the company has never come across any major accidents or
breakdowns. The production unit is properly ventilated and has sufficient
exhaust fan and good working conditions.
Page 55
Pollution Control
The company doesnt 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.
Page 56
Yarn
Warping
Pirn
Winding
Sizing
Beam
Draw in
Weaving
Knotting
Greige
Cloth
1st Piece
Inspection
Checking
Dispatch
Un
Winding
Cutting
Folding
Recountin
g
Packing
Grading
Fig 4.2 Production Flow Chart
Page 57
Director, chairman and

managing director
General Manager
Manager
Manager
Shift in
charge
Preparatory in
charge
Maintenance super
wiser
Supervisor
Helper
Jobber
Electrical
engineer
Weaver
Fig 4.3 Structure of Production Department
Page 58
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
Kitex markets its processed products like lungies, dhothies, bed
sheets and mulls etc mainly through dealers. Almost all Kitex products
are available at the dealer shops. The products are transported to the dealers
by deliver vans. Sales Executives take orders of different items from the
dealers once in a month
The company is having 1000s 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.
Page 59
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 doesnt entertain any middle man. They deal directly
with their dealers. The company is following a hierarchical channel of
distribution.
Company
Dealers
Consumers
Page 60
Marketing Function
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 dealers 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
competitors 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.
Page 61
In the case of all major companies, the margin is very high when
they sell their products to dealers. However, in the case of Kitex Ltd the
margin is comparatively low. The major problems of competitors products
are poor quality, poor color dyeing etc. Compared to other products, most
customers choose Kitex brand because of its high quality despite of its a bit
high pricing..
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 suzionlooms, which are imported
from Switzerland. The only competitor having this type of technology is
Janson. 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 staffs of
R&D department are responsible for it. It includes informal interview, with
focus group of consumers to gain insight in to their motivation, attitude and
Page 62
behaviour using their findings, the researcher prepares a formal

questionnaire which is administered to sample of customer to collect data
on:
a)
b)
c)
d)
Attributes and the important rating.

Brand awareness and brand rating.
Product usage pattern.
Demographic, psychographic and media graphic details of respondents.
Co-Ordination of Marketing Activities

All Sales Executives are directed to report to the Assistant Managers
(sales) every day. The Assistant Manager and the Marketing Manager are in
constant touch with all Sales Executives who are in the field. All Sales
Executives are expected to submit the Daily Sales Report (DSR) on all
Mondays. On all Mondays there is a meeting of all personnel in Marketing
Department preceded over by the General Manager.
In this meeting all the activities and achievements of the departments
are discussed, new plans and strategies to increase sales are formulated and
other issues connected with marketing are discussed.
Show Rooms
The company has showroom sales in addition to sales to its
authorized dealers and franchisees. There are about 20 show rooms speeded
all over the major towns in Kerala.
Page 63
Customers
The companies customers are average and above average income
earners. Agriculturalists constitute a large portion of the customers.
Pricing Strategies
a.
b.
c.
d.
e.
Prestige pricing
Penetration pricing
Price skimming
Price lining
Dual pricing
Channels of Distribution
Distribution of Consumer Goods
Producer
Consumer
Producer
Retailer
Consumer
Producer
Whole sale
Consumer
Page 64
Retailer
Distribution of Industrial Goods

Producer
Industrial customers
Producer
Agent
Industrial customers
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 enrol appropriate pricing
decision. The company follows skim pricing. The companys 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 the firm has helped to maintain
growth in demand and hence requires lesser investment in advertisement
and promotion.
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 sells through their own
factory outlets.
Page 65
Promotion Mix
Kitex 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. Kitex chooses the following media:
T.V
: D.D,Asianet,Surya
Video ads
: C.E.E videos,SAN videos

Closed circuit TV: K.S.R.T.C,, Railway station
Print media : All dailies,Vanitha,Grihalakshmi,etc.

Demonstrations and sponsors events
Banner, metal board, wallpaper etc.
In addition, the customer gets valuable information from companys
website.
www.annaaluminium.in
Page 66
KITEX-STAGES IN THE PRODUCT DEVELOPMENT PROCESS

Idea research
Screening analysis
Product development
Market testing
Commercialization
KITEX-STAGES IN THE PRODUCT LIFE CYCLE

Introduction
Growth
Maturity
Decline
Page 67
Chairman & Managing Director
General Manager
Manager
Manager
(Processed Fabrics)
Assistant
Manager
Marketing
Executive
Sales
Executive
Assistant Manager
Marketing
Executive
Sales Executive
Fig 4.4 Marketing Department Structure
Manager
(Advertiseme
nt & Sales
Promotion)
Page 68
Assistant
Manager
Med
ia
A
r
Personnel and Administration Department

Now days, Human Recourse is considered as one of the important asset
of an organization. Behind every success company their need a great people
making recruitment and retention. Companies must find new ways to
engage the knowledge, experience talents of the employees to find the
hidden values in organization and leverage that value to achieve strategic
goods.
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
The main function or role of personnel manager and Administration
manager
i.
Advisory Role: Industrial psychology and Sociology.
ii.
Operative and Service role.
iii.
Conciliators Role.
iv.
Specialist advisory Role.
Page 69
a. Formulation of HRD function and suggesting the HRD needs of

the organization.
b. To find out ways and means of implementation of HRD Function.
c. Monitoring the HRD activities of the organization.
Role of Personnel Manager

a. To create necessary infrastructure for HR development activities.
b. To lease with HR manager in identifying areas for HR development.
c. To arrange proper placement to trained employees.
d. To activate association and employees to take part in HR development
activities which are beneficial to both employee and Management.
e. To monitor utilization and effectiveness of HR development training.
Criteria for Evaluation of Managerial and Supervisory Level

a.
b.
c.
d.
Conceptual skills - Innovation, creativity

Decision making skills - Analysis problem solving
HR skills - Motivation, communication, built team spirit
Organizing skills - Organizing on work and other work
The Activities Normally Associated with this Department are:
a. Human Resource Planning

Human resource planning is understood as the process of forecasting an
organization future demand for, and supply, of the right type of people in
the right number.
In Kitex Ltd, The concerned department is always updating the list of

people (after all preliminary formalities).
Page 70
b. 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.
In Kitex Ltd, the personnel and administration department have a
clear cut recruitment planning. For this they give advertisement in
newspaper and other medias. After collecting all application, department
sorts these application and call up the right candidate for the interview. This
process comprises of 5 interrelated stages. They are:
i.
Planning
ii.
Strategy Development
iii.
Searching
iv.
Screening
v.
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 newspapers, 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
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experience in the industry is also required. They can directly appear for
interview. Sometimes 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.
c. Interview And Selection

The selection is made through direct interview with references of
application. There is no specializing interview board for the company.
Those who have applied for skilled posts will have to appear for skilled
tests. By recommendations and proper reference also employees were
selected.
d. Selection Procedure
A person before being appointed to any levels of management a
thorough analysis of post is to be done. Through print media, various
vacancies are informed to prospective candidates.
e. Training and Development

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
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education through companies own community college to increase general

knowledge and to understand total environment.
f. Performance Appraisal
Yearly evaluation of performance is done for the employees. The
evaluation criteria for the managerial and supervisory levels are:
a. Conceptual skills ability
b. Decision making skills ability
c. HR skills ability
d. Organizational skills ability
e. Personal characteristics
f. Job ability
g. Integrity and honesty.
g. Employee Remuneration
Remuneration insisted by the Government of India and Government of
Kerala includes
a. Wages and salaries
b. Incentives
The elements of companies employee reward is as BP + HRA + DA +
Children education allowance.
h. Bonus
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Based on previous years profit, 8.33 % - 20 % is given as bonus every

year. Gratuity is paid to employees who have completed 5 years of service.
i. Statutory Rules for Employees

EPF, ESI, Medic-Claim insurance and maternity benefit also provided
for employee.
j. Leave Rules
Earned leave is calculated at one leave per 20 days and it will be less
than15 days per year. In addition to casual leave, 16 annual holidays.
k. Shifts
The company is undertaking production on job order basis. The
production department works in 3 shifts.
l. Ambulance and Bus Facilities

Company has its own ambulance for emergency use for both workers
and public medical facility in the organization is also good.
m. Drinking Water Facilities

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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.
n. Employee Welfare Measures

In India labour welfare measures can be divided in to statutory
welfare measures and non-statutory or voluntary welfare measures.
a) Statutory Welfare Measures

a. 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.
b. Annual Bonds
The company pays annual bonds to its employees based on the
companys performance in the previous year. 8.33% to20% of the profit is
given as bonus every year.
c. Canteen
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The company has separate canteen for male and female employees.
For drinking water, coolers are also installed in the company wherever
necessary.
d. Gratuity
Kitex Ltd maintains a gratuity scheme for its employees who have
completed 5 years of experience including training period.
e. Provident Fund
The company contributes 12.5% in the employee P.F scheme.
b) Voluntary Welfare Measures

a. Attendance Allowance
b. Uniform Allowance
c. Childrens education allowance
d. Free tea and coffee for office staff
e. Funeral expenses on the death of family members of the employees
f. Saving schemes for employees
g. Stands as guarantee for the employees to buy vehicles and house holder
on hire purchase
h. Leave- Earned leave for 15days is granted to employees. Maternity
leave of 12weeks is granted to the female employees
i. Free accommodation is granted to female employees
j. Night shift allowances and OT allowance
k. One day tour program is conducted once in every 2 years
l. Health and Safety measures.
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o. 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.
p. 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.
q. 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 great privilege for the company as a union free
company. This is maintained in Kitex through good employee relation.
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r. Industrial Relation
Industrial relation is concerned with the relationship between
management and workers. In Kitex Ltd and all other Anna group of
companies the management is very conscious about maintaining good
industrial relation between management and workers and the role of
regulatory mechanism helps in resolving any industrial dispute.
s. Promotion
Promotional activities contribute to the employees satisfaction and
motivation. If mishandled it leads to discontentment, frustration among
employees and culminates in a high rate of labor turn over.
In Kitex Ltd within the limitation the personnel department, it lays down a
sound promotional policy and ensures its implementation.
t. 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.
u. HRD Services
HRD activity is undertakes in an integrated manner. It is one of the
several organizational process evolved to cope with the changing
environment and to maintain the organization at its best.
The focus is on the overall development of a personality rather control.
Their responsibility starts right from recruiting the right person at right
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place at the right time till the retirement. It also includes training and
development, provision for good working conditions up to retirement plans.
HRD Department of the Company is based on Three Aspects;

a. Competency Building
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 programs.
b. 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 culture prevailing in the organization. Culture
mainly indicates the good attitude towards employees and vice versa.
c. 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.
d. Payment of wages and salaries
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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.
e. Standing Orders
According to the Industrial Employment (Standing Orders) Act, 1946,
the company has a proper standing order to make explicit conditions of
work and employment and also to ensure uniformity of the same for all
workers. Also specifies the duties and responsibilities of employers and
workers.
f. Fringe benefits
Five techniques for good housekeeping. They are as follows
a. Sorting
i. Segregate required, usable, rework able and absolute items
ii.
Dispose of unwanted items
b. Systemizing
i. Use labels, colors, codes for easy identification
ii. Use index for files, records, drawings etcto facilitate
c. Shining
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i.
Inspect and clean the supply lines, warehouse, scrap yards and
ii.
gardens
Identify the root cause of loud noise vibration heat buildup in
equipment and take medical action

d. Standardizing
i. Develop standards
ii. Establish checking procedures
iii. Care visual controls
e. Self-disciplines
i. Develop action plan for maintain the set standards
ii. Conduct self-audit
f. Compensation benefits
General
Manager
Manag
er
(Perso
Front
Welfa
Ofce
re
Execut
Ofc
Page
81
Cant
Asst
Of
een
Hoste
.
ce
SupeSupervisor
Co
H Asst.
l
Asst.
Man
Ass
Manager
(Adm)
Sec
Time
S
urity
Ofc
t
Chie
er
e
Canteen
n
Supervis
Ofce
Co or Supervisor
Help
AssetAsst.
Sec
urit
y
Of
ce
Ass
Constru
ction
Workers
Driv
ers
Fig 4.5 Structure of Personnel and Administration Department
SYSTEM DEPARTMENT
In kitex the system department has an important role in overall
coordination of all activities. It is an inherent part of the organisation. The
internet connectivity is done through BSNL broadband and the company is
having its own ERP solution. There are two types servers used; the database
server and the web server. The security system used in Kitex is MacAfee
and firewall.
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The operating system used in Kitex includes windows xp, windows

vista, windows 2000, 2003, and 2008, Most of the system in Kitex are Dell.
There are about 40 licensed software used by the company. The system
backup is done manually by the finance department is functioning with the
help of accounting package allied tally 9.1.
The new innovation in system department is the introduction of SAP
ERP. It is installed on all the sister concerns of Anna group. Training is
given to selected employees on June to March period and was implemented
on May.SAP ERP solution enables management to foresee all the activities
that are taking place in the company.
FUNCTIONS OF SYSTEM DEPARTMENT

To develop and implement Sap systems.
To maintain the network infrastructure of the company.
To give technical support to the staffs in case of any failure of the
computers.
Installing and configuring new software and hardware.
OBJECTIVES OF SYSTEM DEPARTMENT

To improve efficiency and effectiveness.
To constantly improve organization image.
To exercise better management control over various operational
aspects.
SOFTWARE USED
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All locations except showrooms are having their own network. All
showrooms are having single PC which connected to Kitex comany using
Citerix. All locations are interconnected with through fiber, switches and
gigabit auto sensing. Finance department of all locations are handled by
Tally 9.1.
ENTERPRISE RESOURSE PLANNING

Anna group has purchased SAP R/3 software license and used it for
replacing its current production, planning, financial. payroll, sales and
distribution by software system. Erp implementation is going on the
company. Employees are very much cooperating towards this. Erp
maintaince is done by the company itself after the expiry of the contract.
Manager System
Senior Executives
Executives
Fig 4.6 Structure of system department
PURCHASE DEPARTMENT
The Purchase department plays a very important role in the company
and it has its effect on every vital factor concerning the manufacture,
quality, cost efficiency, and prompt delivery of goods to customers. Its
function is to procure materials, supplies, services, machines, and tools
favourable terms consistent with maintaining the desired standard of quality.
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Purchasing is the important function of materials management as the

moment an order is placed for materials a substantial part of the companies
finance is committed which effects cash flow position of the company.
The company is having a centralized Purchase department headed by
the purchase manager. He is assisted by 2-purchase officers and an office
assistant. Mr.Venugopal is The Purchase manager of Kitex Limited he is
assisted by two purchase officers and an office assistant. The Purchase
manager reports to the General Manager and Managing Director. The
Purchase manager coordinates the entire purchase activities. In case of local
purchase or minor items which are frequently required, it is the
responsibility of the purchase officers to ensure the timely procurement of
materials as the purchase requisitions issued by the stores when the items of
materials have reached the re-ordering level.
The basic objective of setting up a separate purchasing department is
to ensure continuous availability of quality materials, so that production is
not held up and reduce the cost of finished product according to their proper
plan.
Duties and Responsibilities of Purchase Manager

1. To make continuous availability so that there may be uninterrupted
flow of material for production.
2. To make purchase competitive and price at the most economical form.
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3. To make purchase in reasonable qualities to keep investment in material

minimum.
4. To purchase proper quantity of material to have minimum possible
wastage of material and loss in production.
5. To develop alternative source of supply so that material can be
purchased from those alternative source if particular supplier fails to
supply the material.
6. To adopt the most advance method of purchase to ensure smooth
delivery of material from supplier and to avoid the risk of any dispute
and financial loss.
7. To serve as an information centre on the material knowledge relating to
purchase, source of supply specification and mode of supply.
Factors considering while selecting supplier

1. Manufacturing capacity.
2. Reliability of suppliers.
3. Financial condition of the suppliers.
4. The management of supply firms.
5. Price quoted.
6. Terms of payment
7. Terms of delivery.
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8. Specification to which products are manufactured.

9. Quantity for which price quoted is applicable.
Materials Purchased
The following are the major items of materials purchased by the
company.
1. 100% cotton yarn of different specifications.
2. Sizing chemicals alpenol, tapioca starch, adhesives etc.
3. Loom Spares.
4. Electrical equipment and accessories.
5. Packing materials and office stationary.
The company is having a centralized system of purchases .almost all
purchases are managed by the purchases department and controlled by the
top management. Purchase officer assist the purchase manager. They coordinate the entire purchase activities. In the case of local purchases or
minor items, which is frequently require, it is the responsibility of purchase
officer to ensure timely procurement of materials. The purchase department
purchases the materials as per the purchase requisitions issued by the stores
when the items of materials have reached the re-ordering levels.
Purchasing procedure
1. Identifying the materials
2. Exploring the sources of suppliers.
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3. Issuing purchase order.

4. Receiving and inspecting materials.
5. Checking and passing of Bills for payment
STORES DEPARTMENT
The stores department is headed by stores manager. He is assisted by
four persons; two in general shift and one each in other two shift. The
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stores manager is reporting to the general manager.storage of all items of

rawmaterials including sizing chemicals, yarn ofdifferent specifications,
Adhesives, spare parts, electrical items, lubricants, tools, office
stationerypacking materials, etc..are the responsibility of the stores
department.functioning of the stores department is controlled /administered
by the stores manager. Materials storage is planned by the stores manager
with the help of the purchase/production department. yarn and packing
materials are stored in the production department go down and packing
section respectively,due to lack of sufficient space in the store and to
facilitate easy handling both the items.but the stores department controls the
issue of both these items.
PROCEDURE OF ISSUE OF RAW MATERIALS

When particular item of raw material spare parts or tools are required
for production, the supervisor of the concerned section of the production
department issues a material requisition. on receipt of the materials
requisition note or material indent, the stores manager sees whether the
item demanded in stock in the stores. If the required item is sorted in the
stores, it is issued to the concerned department or section and the
acknowledgement for the same is obtained and field in the stores.
If the particular item or material is not available with the stores or the
same has re-ordering level, the stores department informs the purchase
department and issuing purchase requisition.
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The quantity, quality and other specification of the item issued are
recorded in the issue 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 the stores ledger control account even
though they are not stored in the stores. The store department is fully
computerized .A special software package is designed and installed for
inventory management in stores. All the receipts and issues are recorded in
the company.ABC analysis of inventory is done regular basic. Physical
stock taking is done once in every month by the stock taking by the
statutory auditor. The stock verification is done independent of the store
keeper and stores manager. All stock of raw materials and spare parts are
stored in assigned areas only. Access to those areas is restricted. All stock of
raw materials, spare parts, tools, etc are insured against fire and hail
damage. A record is maintained for the insurance policies are duly complied
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.
MATERIALS CONTROL SYSTEM

The company has a materials control system, which ensures that right
quality of materials is available in the right quality at the right time and
right place with the right amount of investment.
It is a comprehensive frame work for the accounting and control of

materials court designed with the objective of maintaining materials
suppliers at a level so as to ensure uninterrupted production, but at the same
time minimizing investment of funds. Because materials constitute such a
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significant part of product cost and since this cost is controllable. The
company has proper planning, purchasing, handling and accounting for
materials. Two levels of material control trust in the companyquality
control and financial control. Production manager and stores manager are
primarily interested in quality control, because it is their responsibility to
see that there should be no stock out problem. Finance manager, on the
other hand is interested that too much money should not be invested in
materials and every rupee spends on materials should be effective and
efficiently utilized.
TECHNIQUES OF MATERIAL CONTROL

The following are the main techniques of material control used by the
stores department
Level setting, economic order quantity
ABC analysis
Perpetual inventory system
Material turnover ratio
Material cost report
The company does not have any stock in public warehouse or with
consigns. Some stocks are lying with job workers, which are given to them
for processing (bleaching, dyeing and printing).
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Features of Material Control System

Continuous availability of all types of materials in the factory.
No excessive investment in stock materials.
While purchasing materials, it is seen that it is purchased at reasonable
low price by the store department.
Information about availability of materials is continuously made
available by the store manager.
There is proper co-operation and co-ordination among departments.
As a part of material control system there exists an internal check on
material so as to avoid misappropriate of store items.
QUALITY CONTROL DEPARTMENT
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Kitex is very much concerned about the quality of the product and
some export is also made .so high quality must be ensured to meet
international standards. The company has ISO certification. The company
has different equipments and machineries to ensure at different stages of
production. The main aim is to provide maximum quality at minimum cost.
Before purchasing yarn the quality parameters is checked and getting
assurance from the yarn supplier reading to count,strength, twist etc..for
checking or measuring the above parameters various equipments are
available in the company .the company used to purchase good quality yarn
i.e, auto cone ,auto spliced, electronically siro cleaned combed yarn for
making 100% dying standard quality fabric for export garments
The standard quality of greige fabric will depend on the buyers
requirement. Eventhough the company follow stated quality policy 4point
system from the Textile Distributors association .Inc, USA and American
Textile Manufacturers
Institute.Inc, Newyork. The penalty or demerit
points are calculated according to the length Defects in the fabric .The
American 4 point system
METHOD OF GRADING
FIRST QUALITY-A piece is graded as first if the total penalty point
does not exceed the total yardage of the piece.
SECOND QUALITY-A piece is granted as second if the total penalty
point exceed the total yardage of the piece. In increase of not more than
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10%in penalty points will be allowed on first quality goods over 50 inch
width.
Total quality management (TQM)

Total quality management (TQM) journey started at ANNA group in
6th June 2005. It is a long journey toward success.
Quality means 100% quality in attitude, speech, people, work,
discipline, surroundings, products etc
The company introduced 5 stechniques is a Japanese method. it
help the company to
Improve productivity
Save time
Solve space constraints
Improve morale to employees
5s techniques
5s techniques for good housekeeping. They are as follows
1. SEIRI (SORTING)
Segregate required, usable, re-workable and absolute items
Dispose of the unwanted item
Clear off walk ways
(One picture is worth more than a thousand words)
2. SEITON(SYSTEMATIZING)
Use labels , colour codes for easy identification
Use index for files, records, drawings etc to facilitate
retrievability
Plan storage with accessibity
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(A place for everything and everything in its place)

3. SEISO (SHINING)
Inspect and clean the supply line ,go down, scrap yards
and gardens
Clean up work place, machines and tools after use
Identify root causes of loud noise, vibrations. Equipment
and take remedial action
(Spic and span leads to zero breakdowns)
4. SEIKETSU(STANDDARDIZING)
Develop standards
Establish checking procedure
Create visual controls
Devise ways and means to expose problems
(Action speaks louder than words)
5. SHITSUKE(SELF DECIPLINE)
Develop action plan for maintaining the set standards
Give unambiguous advice instruction to the work
associates
Carry o 5s activities as a manner of habit and enthuse to
practice 5s
(Conduct self audit)
Quality policy of Kitex limited

They are committed to manufacture and deliver quality fabric and
processed fabric as per customer specification, efficiently in a professional
and environment friendly manner, on time and at the right cost with utmost
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customer satisfaction, while driving to become a world class organization

through continual improvement
Increase production by 60% from the present level by adding essential
machinery, manpower and solving space constraints
Reduce the present product reduction by 50%
Reduce the specific fuel and electricity consumption by 10%
Reduce the customer complaints by 50%(improving quality products
and service)
Organizational contribution to society
Corporate social responsibility
As a part of the organizations contribution towards the society the kitex
ltd provide
The company provides employment opportunity to about 2000 people
It also provides good working environment to the workers and also
ensure their safety and interests
The goods produced are eco friendly and do not cause any harmful
hazards to the environment
An ambulance service is provided to all BPL families of
kizhakkambalampanchayat
The company has strict pollution controlling measures

The company provides free school bags to the anganavady students of
kizhakkambalampanchayat.
Environmental policy
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Effective utilization of resource to reduce waste

Abide by environmental law and regulations
Continual improvement of environment performance
Establish awareness among employees and business associates
It follows all the norms set by pollution control board
POLLUTION CONTROL
The company does not have any pollutant products/bye products. The
only pollution may be the 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 the addition to this, the factory and
premises are cleaned in a regular basis.
Awards Won
Mr. Jacob, the founder of Kitex Limited has won several awards for
his meritorious contributions in the field of business. To mention a few:
He has won the TRANSWORLD TRADE FARE Gold medal in the
year 1975.
He has been awarded the UDYOG PATHRA Award by the then Vice
President of India Sri. B. D .JETTI in the year 1979.
A Memento was presented to Mr. Jacob in December, 1992 for his
valuable contribution to the Evangelistic Convention held at
Puthencruz.
Considering his outstanding contribution as an Industrialist Mr. Jacob
was awarded the BUSINESS MAN OF KERALA 1999 award by the
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BUSINESS DEEPIKA, the business daily from one of the oldest

Malayalam Newspaper Group.
KRISTHU JAYANTHY award for the year 2000 was conferred to Mr.
Jacob during the 82nd ALL KERALA CATHOLIC CONGRESS for his
noteworthy contribution 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 1 st,
PATRIARCH OF VATICAN.
AKSHAYA AWARD 2000 for his outstanding contribution to
Malayanma.
The Ernakulam Chamber of Commerce the Joseph Chakola Memorial
VyavasayaJyothi Award to Mr. Jacob for the year 2000-2001.
Department of Catechism Ernakulam-Angamaly has recognized his
contribution by giving a Memento for special service rendered to
Catechism Teachers.
Bharat Aluminium Company Ltd (A Government of India Enterprise)
Service recognition Award.
Samman Patra of Government of India, Ministry of Finance,
Department of Revenue for outstanding revenue performance.
Advertising Industries media presented a Memento Kerala Adifest
2007.
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CHAPTER: 6
SWOT ANALYSIS
SWOT ANALYSIS
The basic objective of SWOT analysis is to provide a frame work to
reflect on the firms ability to overcome barriers and to avail opportunities
emerging in the changing environment, the diagnosis of strength and
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weakness can be fruitfully on if the environment factors and market

conditions are considered always with the internal capabilities. SWOT
Analysis is an important tool to find strength, weakness, opportunities and
threats.
STRENGTH
1. One of the oldest manufacturers of textile products in
Kerala KITEX is one of the oldest textile manufacturers who
started operations since 1975. This has actually contributed to the
credibility by standing to the test of time.
2. Effective Distribution Channel KITEX has clear network

of more than 2500 dealers spread all over Kerala, Karnataka, and
Tamil Nadu. They have direct outlets in Kerala and Tamil Nadu.
3. ISO Certification KITEX received the ISO 9001-2008

certification for their commitment to manufacture and deliver
quality product. KITEX Ltd is the leading manufacturer with ISO
in South India of all varieties of Grey Fabrics, Yarn, Dyed
Fabrics, Dobby and Leno Dobby made of cotton, Polyester
Cotton, Cotton Nylon, and Cotton Linen etc.
4. Highest Market share for Lungies The market share of

KITEX lungies in Kerala will come around 68%.
WEAKNESS
1. High Labour Attrition - Due to lack of skilled workers the labour
attrition rates are very high. When workers get jobs in a shop or in a DTP
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centre they leave there job because they get the same pay without taking so
much effort.
2. High rate of Absenteeism - From the official record the researcher find
out that the rate of absenteeism is very high. This shoots up just after the
monthly pay is given.
3. Huge Variations in the incentives with change in season - During

seasons there is huge variations in pay. When more orders are to be met the
company has to adjust with the existing employees. So the company pays
the employee huge amounts in the form of overtime pay.
4. No 100% utilization of the installed capacity Many Machines in the

plant lay idle.
5. Lack of modern weaving and quality checking machines There are

no fully automated and sophisticated weaving and quality checking
machine.
OPPORTUNITY
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1) India with large cotton cultivation has a great scope in textile market
- India is the second largest cotton producer followed by China. India
produces 23.5 Million bales annual production.
2) Increased Demand for Cotton Material - Now due to increase in
temperature more and more people prefer to use cotton out fits.
3) Opportunities in Export Market due to Globalization
THREAT
1) Change in Fashion - Now a days even people in villages have reduced
the usage of lungies and the younger generations have switched on to
Bermudas and shots.
2) Flexibility of Government Policies - The government makes frequent
changes in regulations.
3) Availability of cheaper products in the market Today a lot of cheap
substitutes are available in the market.
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CHAPTER: 7
FINDINGS AND SUGGESTIONS
Findings
I am able to find out areas of strength, opportunities, weakness and
threats of company. It also helps me to know more about the industry with
Page 103
the new scope and trends. It also helps me to familiarize with various
policies adopted by company Kitex ltd for their success. This company has
a good market in both inside and outside the country. Their customer service
is an important one. Kitex Ltd is more concentrating the quality of their
products. This practice is the success behind their triumph.
Todays life, people are more concentrating quality and price. Most
of the customers 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
1. Kitex textile products have great demand in Kerala

2. The Kitex customers have better brand loyalty
3. Kitexlungies have little competition
4. Kitex is more familiar in the middle aged people
5. MCR is the nearest competitor for Kitex dhothies in the
market.
6. Kitex ltd provides good facilities for their employees.
7. There is no trade union exist in the organization because of the
good relationship between employees and management.
8. Majority of the workers are women.
9. Can venture into more and more textile products as the
distribution channel is strong.
10. The unavailability of local work force.

11. The factory is situated at an ideal place.
12. The dealer-factory interaction is strong.
Suggestions
At present, the overall functions of the company are going on well, but
certain changes are required to bring in the developmental angle.
Page 104
Suggestions are made under the various employee related areas, which are
given below;
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
d.
e.
f.
g.
h.
the market share.

Promote quality circles
Provide more employee empowerment
Expand the distribution to rural areas also
Complete the computerization process
Introduce more modern looms
CONCLUSION
The 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.
Page 105
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.
BIBLIOGRAPHY
Company Profile.
Company Manuals.
Production Management (Aswathappa).
Production Management (Edwin.b. Flippo)
Marketing management ( Philip kotler)
Websites
www.textileindustry.com
Page 106
www.annaaluminium.com
www.kitexltd.com
Page 107

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Chapter: 1

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interact with the managers of different departments and to observe the

been collected by structured interview with the managers and other

Need and Significance of the Study

Scope of the Study

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Albertian Institute of Management

Albertian Institute of Management

INDUSTRY AND EVOLUTION

During the industrial revolution, new machines such as Spinning

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Textiles including Handlooms, Man- Made Textiles, Woollen Textiles,

STRENGTH OF INDIAN TEXTILE INDUSTRY

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requirements of fabric etc... It comprises suppliers of readymade

WEAKNESS OF INDIAN TEXTILES INDUSTRY

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embroidered goods it is usually done by woman artisans. Caps are produced

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Albertian Institute of Management

Introductions to ANNA Group of Companies

marketed in the famous brands of Kitex, Scooby-day, Anna aluminum,

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Albertian Institute of Management

Nature of the incorporation:

Private Limited Company

Manufacturing of cotton textiles& bag

Industrial Products & Consumer

Total Built up area

16, 50,000 sq.feet,

500 modern looms,

25000 per day

Total Capital Employed

Annual Sales Range

Sri: M.C. Jacob

Mr. Bobby. M. Jacob

Mrs: Mini Bobby Jacob

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Mr. Varma & Varma Co

Federal Bank, ICICI, Canara Bank

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LOCATION OF THE COMPANY

Leadership, Team work and TEI

Future Visions of Kitex Limited

To reach excellent quality standard in the coming years.

QUALITY OBJECTIVE OF KITEX LIMITED

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POLICIES OF KITEX LIMITED

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Profit maximization and consistency in profitable levels

CORPORATE SOCIAL RESPONSIBILITY

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The company provides employment opportunity to about 2000 people.

It also provides good working environment to the workers and also

Kitex products achieve maximum shares in the period festivals like

OWNERSHIP PATTERN & LEGAL FRAME WORK OF

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Albertian Institute of Management

Sweet Dreams King Knight

Soft Dream King Size + 2 Pillow covers

KITEX BAG DIVISION

Features of Scoobee Day Bags