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CHAPTER-I
INTRODUCTION

INTRODUCTION
The Lokanath weavers Industrial cop Society Ltd. is famous firm in Kerala from
its inception in 1955 for production of the superior quality handloom textiles both for
export and indigenous sales. In fact this society was a model society to register many
of the other industrial type of handloom weavers co operative society in different
parts of India. This reputed factory type handloom society situated in Kannur, the city
of looms and lores.
The society is working with all modern facility for dyeing, processing, testing,
weaving, stitching and packing according to the modern fashion trend. The society
was registered on 18-4-1955 with 88 members and 52 looms. At present 126 looms
with 155 members are engaged for its production process
The handloom industry is one of the largest segments in the unorganized
sector .It plays an important role in the countrys economy. It is the oldest cottage
industries in India diffused widely throughout the country .Handloom assumes
importance because it not only meet clothing needs of the people but also gives
expression to Indian art and culture, craftsmanship and heritage.
A study report based on the industrial visit as a part of the fulfillment of my
degree of Bachelor of Business Management course in order to relate the theoretical
studies with that of the practical knowledge from the company, I have done my
project study at Lokanath Weavers Ltd.

1.1 OBJECTIVES OF THE STUDY

To know about the organizational structure

To know about the various products in production department.

To know the raw material usage of the company.

To acquire the knowledge about profit disposition of the company.

To acquire knowledge about production process.

To study the distribution channel in marketing

To study the Human Resource Department functions

To know about the functions of various department such as production,


finance, personnel and marketing.

1.2 SCOPE OF THE STUDY


The scope of study has been spread to the entire of the company and their
activities and functions. It covers all aspects relating to the growth of the organization.
It also covers the standard operating procedure followed in the company.
METHODOLOGY AND DATA COLLECTION
A research design is an arrangement of conditions for collecting and analysis of
data in a manner that aims to combine relevance to the research purpose with
economy in procedure.
The study has been conducted on the customers of Mayyil Weavers. This would
help me to gain knowledge to understand and justify the reason for customers to place
the opinion stage. A Research design is the basic plan that guides the data collection
and analyses phases of research instrument. A well developed questionnaire was
prepared on the basis of objectives.

Data was collected from both primary and, secondary sources.


PRIMARY DATA
The primary data was collected from customers of MAYYIL WEAVERS. Data
was also collected by means of interactions with the Marketing Manager and other
staff members of the company are used apart from these, casual talks with the
company workers are also helpful for successful completion of the work. Secondary
data was collected from various published sources like annual reports, company
brochures, past records and websites.
SECONDARY DATA COLLECTION
Secondary data was collected from referring magazines, news paper, journal and
website, Referring books related to the study

1.4 PERIOD OF STUDY


The duration of the study is up to 3 week on 1 sh December 2015 to 21st December
2015.

1.5 LIMITATIONS OF THE STUDY

It was very difficult to collect data

Overall program in the organization.

Lack of time was also there.

21 days was not enough to collect the entire data and to study all the
functions properly.

CHAPTER-II
ORGANISATION PROFILE

2.1 INDUSTRY PROFILE


The history of India handloom textiles is mentioned in our epics and Puranas
nearly five million years ago. A piece of cotton sticks to a silver vase and some
spindles were found excavations. This revealed that the spinning and weaving of
cotton was known to the Harappas various materials used in spinning and the method
of spinning is mentioned in the ancient scripts.
Buddhist era scripts reveal that Woolen Carpets were known India as early as
500.B>C some varieties Indian fabrics are mentioned in the Chinese literature. This
indicates the early experts of India Macro Polos records show that Indian textiles used
to be exported to China and south East Asia from Andhra and Tamil ports in the
largest ships A port named Kalyan was a place from where the textiles were
exported in the second century BC. There is archaeological evidence from
Mohanjadaro. This establishes that the complex technology of morclant dyeing was
being used in the subcontinent from at least the second millennium B.C at the end of
the 17th century the British East India Company had begun exports of India silks and
cotton fabrics to different countries. Before the introduction of mechanized means of
spinning in the early 19th century all India cottons and silks were had spin and hand
weavers highly popular fabric called the Khadi.
By the British Capitalism India was one of the leading textiles exporters
become a net importers of these textiles in the year 1880.This situation was continued
till it got independence in the year1990 India realized the suffering of the textiles
sector due to the numerous regulates actions and then realized many constrain to
imposed earlier on this sector. By librating its policies in 1991, its economic situation
has improved in a better way India has the second largest spinning capacity after
china on hand weaving sector and a long tradition of production a sale of the finest
and costliest fabrics in the works. India is the biggest arm exporter with a share of
28% of the worlds market is being normally exported through various organization
and working for handloom export

HANDLOOM SOCIETY
Handloom Society is an ancient industry in India. The features of the sector
very across the country. In some parts of Kerala, Tamilnadu, Assam and Orissa it has
attained the status of a nature Industry and in other parts, it is still and enterprise
confined to the needs of the household.
The last 100 years have seen the growth of mechanized textile production
internationally. In part due to competition handloom has lost much of its market and is
almost nonexistent in most countries. However handlooms are still a force to veckon
with in India and some other Asian countries such as

Sri Lanka, Bangladesh,

Thailand and Cambodia Today Indias textiles sector comprises four important
segments modern textile mills. Independents power looms, Handlooms, and garments.
Through there is a huge informal tailoring enterprises, it has not studies or considered
worthily or public attention leave alone policy. There are also such sectors like textile
machinery manufacturing and spinning sectors which form part of the textile sector.
Through of employs the largest number of people the handloom sector is
considered a sunset Industry and there is an air or inevitability given the relentless
march of mechanization and specialization still there are many advocates of handloom
for reason including ideology, philosophy and sheer love for handloom .
PRODUCTS AND ECONOMIC ARGUMENTS
The southern state of India has a rich tradition and population with high health
standards and 100% literacy. It has a prominent place in the tourism map of India.
Kerala known as Gods Own Country has seashore stretching to 500 km in the West
and highly rejoin and bad wakes on the other side. The boat races the outstanding
dance programmance. Kathakali martial arts and herbal treatment system called
Ayurvedic are the identities of this state.
For export of handloom products. Kerala mainly depending upon the products
from Cannanore. The main products are shirting furnishing Turkish Towels safe an

sheets crepe such export oriented and lungies, Earezha, Thorthu etc

for domestic

purpose. The products are coarser varieties Cannanore Mundu is a popular variety.
CHALLENGES FOR THE INDIAN HANDLOOM INDUSTRY
As noted earlier handloom weavers facing severe livelihood crisis because of
adverse govt policies.globalisation and changing socio-economic conditions. The
national and state government does have several schemes pertaining to producing
inputs, market support and development meant to safe guard the interest of the
weaving community in effective implementation of the scheme and the changed
context of textile industry increasing completion from the power loom and mill
sectors- have been largely responsible for the crisis in the handloom.
Lack of information to weavers regarding various policies and schemes is no
less a significant cause for the winding fortunes of the weaver community. Even
government departments and implementing.
The formal education system has not included teaching and imparting skills
for this profession into its fold. As result any inaction and changes has been let to the
weaving fails, in the recent decades due to lack of information and fast paced changes
practices in handloom sector become states and apparently redundant.
Presently government policies are increasingly by the globalization process
and are related to WTO induced trade regimes. As the controls on exports get
liberalized and domestic markets open up the textile scenario in the country is likely
to undergo drastic changes in terms of skills inputs like designs market tends and
changing demands there in the question is whether these changes include the interests
of weavers who are skill practicing their skills and knowledge honed over centuries.
In earlier planning process at the national level development handloom sector
was seen as emulation for rural development being on local resources level
craftsmanship and catering primarily for local markets. In the first decades following
Indias independence all national policies emphasized this however current thinking at
the apex policy level is that the handloom sector is a redundant profession and is a

burden on the government exchequer. Political leaderships in general has been


avoiding taken up on behalf of the weaver community.
Consequently there is no discourse on handloom policies and also the
replacement of the whole set of existing policies. Handloom weavers have on say in
policy matter and around Kannur, Chennai Bangalore and Mumbai here the decisions
are taken by the board of directors consist of president Directors and members.
Secretary is the head of the organization where he acts as link between the
Organization and board of directors. Several training programmes are arranged to
workers to improve the skills and knowledge in the works. The company is going on a
loss even then the workers are paid 8.33% bonus.
The promotion for the Handloom helps to improve the standard of living of
the weavers belonging to all Co operative Society is proposed to implement products
and the market.

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2.2 COMPANY PROFILE


Lokanath Weavers Industrial Co Operative society ltd.. N.LL 99.p.o.chovva
Kannur 67996 was originally a private factory and when it was closed down the
government have decided to convert these into a industrial Co Operative Society by
giving the membership to these work. who were thrown out for employment due to
the closure. The government has given interest free loan to the society to purchase the
building and looms. The Society was registered on 18-04-1955 and started its
commercial operation on 07-08-1995 with 98 members and 52 looms. It was
registered as a Co operative Society under the act vi of 1932 (Madras)
In fact this society was model society to many of the industrial type of
handloom weavers Co operative Societies in different part of these states. The
Industry situated about 3.5 km away from Kannur railway Station and working on
common worked shed with other facilities the dye house, office building etc
constructed on its own land and weaving all verities according to the modern trend.
By years the society had made mainly use of in different project packages scheme of
govt of India mainly for the products of exportable quality handloom gods and
marketing of economical manner.
The firm is mainly producing exportable handloom products like bed sheet
pillow cover, mat table cover, bag munds, furnishing fabrics etc. based on the order
obtained from the reputed handloom exporters in

MANAGEMENT OF THE COMPANY


According to the bylaw of the society the members of the Board of directors
shall be elected as per rule 35 of Kerala co operative Society rules for a period of 3
years. The Board of Directors shall consist of 7 elected members as per the bylaw and
they are electing president and vice president At present there are 6 selected members
are within the company

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The Board shall appoint a fulltime paid secretary form among the suitable
person approved by the district industries office Kannur. The Secretary shall not to be
members of the Board the Board of Directors shall meet once a fortnight to conduct
the affair of the society. The president shall preside over the meeting of the Board. All
questions before the board of directors shall be decide by majority of votes.

OBJECTIVES OF LCWS LTD

To improve the handloom industry and to promote economic condition of the

members of the industry


To improve the quality of the products and to increase the earnings of the

workers
Skills upgrading training to weavers including women workers to make

efficiency with quality for export product


To develop the marketing of different handloom fabrics in national and

international level
To diversity the existing products with improved design, pattern and textures
To do such other as may be conductive of the profit of the organization
To facilitate process of credit from financial institution

HIGHLIGHTS OF THE COMPANY

Pioneer in the weaving Industry with 55 years of experience


Engaged in the production of wide range of products
It has a capacity to meet huge requirement at any part of tune
Highly experienced management team with good knowledge about

market and its products


Factory with strict quality control & Azo free dyeing

Eco friendly and said commitment Products


Located in the city of looms and lose and has a rich traditional in the
production of 100 percentage handloom furnishing fabrics and made
ups for export.

2.3 PRODUCT PROFILE

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In the simple sense a product can be defined as everything the purchase gets
in exchanges for his money
Lokanath weaving industry produces a variety of products of good quality
according to the difference of the customer the company manufacturing the same
quality of product foreign customers and also local customer
1. Bed sheet
2. Mat
3. Towel
4. Cushion Cover
5. Pillow Cover and Table Cover
6. Bag and Purse
7. Mundu and Lungi
8. Cuf rug
9. Napkins
10. Furnishing Fabrics
11. Other products
ORGANIZATIONAL STRUCTURE OF LCW LTD
The top level society vested with board of director. Who make the decisions
regarding the functioning of the organization? Secretary implements these decisions
into the society and who works under the board of directors under the secretary there
exist share keeping and cutting and stitching department. Clerks finance auditor are
also works under the secretary store keeping department included separate packing
and storing department the any consist a total number of 3 clerks weaving master
control are weaving wading and warp opining section and dyeing master direct the
dyeing section.

ORGANIZATION STRUCTURE OF LOKANATH


WEAVERS

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BOARDS OF DIRECTORS

SECRETARY

STORE KEEPING
CUTTING AND STTICHING CLERK

CLEARK 1

STORE KEEPING

TECHNICAL STAFF
FINANCE AUDITOR

CLEARK 2

CLEARK 3

STORE KEEPING

WEAVING MASTER

DYEING

DYEING MASTER
WEAVING

WINDING

WARPING

WARP JOINING

2.4 DEPARTMENTAL STUDIES


PERSONNEL DEPARTMENT

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In large size organization a separate department in formed to perform function


like manpower planned job design and analysis determination of compensation etc.
that department called personnel manager .According to Edwin B.Flippo personal
management can be defined as personal function concerned with the procurement,
development compensation towards the accomplishment of the organization major
goals or objectives
In the small enterprises, personnel department may on may not exist. Thus
department works as a link between management and employees.
PERSONNEL DEPARTMENT AT LCWS LTD
The Personnel department of lcws ltd closely monitors the prepress or
achieving the objectives of motivating the staff and improving the organization
efficiency by of implementing their constructive idea. The LCWS ltd aims for
satisfaction of demand of national and international market. According to the decision
is taken by the Board of Directors and who have complete control over the society.
HUMAN RESOURCE OF LCWS LTD CONTITUTES

Secretary
2 clerk
2 store keepers
45 Weavers
10 Winders
2 work joiners
2 Employees in work sections
5 employees in dyeing section
2 employees in packaging Sections
1 watchman
1 sweeper

Now all together the existing 68 employees in the organization. The watchman
also a weaver in the company
TIME SCHEDULE

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Type of Workers

Starting time

Lunch break

Departing Time

Staff

9.30 am

1.00 pm To 2.00 pm

5.30Pm

Workers

8.30 am

1.30 pm to 2.00 pm

5.30 pm

Watchman

5.30Pm

8.30 Am

AIMS AND OBJECTIVES OF PERSONAL MANAGEMENT


Once of the principle of management is that all the work performed in an
organization should in same way directly or indirectly contribute to the objectives of
those organizations objectives are predetermined ends or goals at which individual or
group activity in an organization in aimed
The basic objectives of the personnel management are to help the realization
of organizational goals. However, the specific objectives of personnel management
may be as follows
1. To ensure effective utilization of human resource. All other organizational
resources will be effectively utilized by the human resource.
2. To generate maximum development of human resource with in the
organization by offering opportunities for advertisement to employees through
training and execution or by effecting transfer
3. To establish and maintain an adequate, organizational structure of relationship
among the members of an organization by dividing of organizational task into
functions positions and jobs and defining clearly the responsibility,
accountability, authority for each job and its relation with there jobs in the
organization

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4. To ensure respect for human beings by providing various, services and welfare
facilities to the personnel
5. To identify and satisfy the needs of individual by offering various monitory
and non monetary rewards
6. To achieve and maintain high employees in the organization by sewing the
better human relation.

FUNCTIONS OF PERSONAL MANAGER

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Function of personal manager

Management function

Planning

Operative functions

Organizing
Directing motivating activating
Co-operating
on controlling
and commanding

Procurement function
Maintenance function
Integration compensating
Development function

PERSONNEL MANAGEMENT PRACTICES AT LOKANATH WEAVERS

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MAN POWER PLANNING


Man power planning is an important function of a personnel management it is
the determination of the man power requirements of a concern in advice man power.
Planning is concerned with the flow of people into through and out of the organization
. It is required in the case of a newly stated concern and existing concern.
RECRUITMENT
Recruitment is the first step in the process to filling the vacancy. It is the
process to filling the vacancy. It is the process of searching for an obtaining applicant
for job so that rights members can be selected
Recruitment is the process of finding out some sources from which the
required employees are made available
According to date yarder a recruitment a process of to discover the source
of man power recruitment of the staffing schedule and to employee effective measure
for attracting the man power in adequate number to facilities effective selection of an
efficient work force
The recruitment follows in Lokanath Weavers is simple and effective in the
fact it selects person and place him at right place in order to himself the job at
Lokanath Weavers requires more of both technical as well as educational knowledge.
The requirement source of management and technical staff are advertising. It is not
directly done by the company. It is done by the industrial department. Thus
department advertising the vacancies in the news paper employees. The requirement
works is direct contact recommendation. Thus is directly done by the company itself.
The company also recruits candidate through internal promotion. Society provides
promotion only for secretary post. It is based

SELECTION

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Selection is an important function of personnel management. It is the process


of choosing right candidates to the right position at right time. It is not a simple
process because it involves the rejection of more people that selected department. It
wants to take into account number of factors like the skills, ability, experience,
qualification attitude etc.
In the word of Date yarder selection is the process in which candidates for
employment are divided into two classes those who are to be offered employment are
divided into two classes, those who are to be offered employment and those who are
not
Usually in Lokanath weavers the selection is done by the department in case
of management and technical staff members industrial department provides a rank list
of the society and on the basis of the list members are selected and placed at the right
place at the right time
TRAINING
Training is the process of increasing the knowledge and skill for doing a
particular job. Training is must for newly appointed employees to perform the job
assigned effectively. The purpose of training is basically to bridge the gap between job
requirement and present competence of an employee, Edwin B.Flippo Training is the
art of increasing the knowledge the skill of employees for doing a particular job
Lokanath Weavers providing training to both staff members and workers in
order to upgrade these works as well as reduce wastage. The training is provided
within the organization on outside Lokanath weavers provide training tom workers to
upgrade their work as well as to reduce wastage. Most of the workers is not having a
formal training on weaving. They learn the skills from their parents or elder of family.
Most of them wear the cloth such as lungi, towel or cheap verities of Sarees where the
income is low. Usually these training on weaving design development dyeing
techniques also provides training to staff members with the help of institute of
corporate management to increase their knowledge and skill. The duration of the
training programmes is 7 days

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THE MAIN OBJECTIVES OF THE TRAINING IS


1.
2.
3.
4.
5.
6.
7.

Introduction of new designs


Product diversification
Product development
Quality improvement
Revival of traditional craft
Improvement on the dyeing methods
Reduce wastage

AS PER THE TRAINING PROGRAMME THE TRAINERS HAS TO


PROVIDE CERTAIN PRODUCTS SUCH AS
1.
2.
3.
4.
5.
6.

Sarees with extra wrap boarder and extra pillow


Dothi with lobby boarded design
Furnishing with multi treadle weaving work
Terry towel and bed sheet
Bath mat and floor mat
Shirting with fiber composition and style and pattern

INDUSTRY RELATION
The industry relation is used to denote collective relationship between
management; employees and government in any industrial or non industrial
organization under the present day factory system of industrial production in two
parties who came into direct contact with each other are the management representing
the employees. Industrial relation is not a new phenomenon but the growth of
industries has made of complex
Lokanath Weavers Industry keeps good industrial relationship with members
and board of directors. A work committee is formed for redressing the grievances of
the workers. If the grievance is occurred in the dyeing department the committee
constitutes dyeing master, secretary, board of directors
STRIKE AND LAY OFF
Strike means that employees are said to be on strike when they stop working.
The stop page of work should be pay group or body of person hence if one employee
stop working, it cannot be a case of strike. The body of person should also be
employed by the industry to work.

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At the Lokanath weavers during the period of buy off no wage on fabrics paid
in the history of Lokanath weavers no strikes arrived at all.
GRIEVANCE HANDLING
At LCWS LTD the following procedure is adopted to handle the grievances of
workers in most possible way they are

Enquiry is done by Weaving master or by dyeing master to find out the

route cause/ of problems


An employee is given the chance to present the problems and to explain

the involment in the problem


Weaving dyeing master present the root causes to secretary be again

conducts a detailed enquiry in to problem


Conducting a board meeting and secretary present the problem and suggest

solution
Suggestions are discussed with board of directors
After discussion finalizing unit able solution

THE REASONS FOR GRIEVANCES ARE FLOWS


1.
2.
3.
4.

Low wages
Less incentives
Objection to a particular work
Inadequate welfare measures

5. In disciplined behavior
6. Lat off
TRADE UNION
The term trade union means a union or association of workers formed fore
looking after their interest by strengthening their bargaining power.
In a democratic country workers enjoy the right to combine themselves into an
organization for protecting and promoting their interest.N.Barou Says the right if the
workers to combine and at in combination on their own interest is one of the essential
freedom of modern civilization the organization of workers are known as trade union.

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Sharp difference in culture and opinion between the working class and management
group gives rise to trade unions
According to the Indian trade union at a trade union is a combination formed
for the purpose of regulating the relations between the workman and employee or
between the workman and workman and employee or between the workman and
workman, or between the employees and employees for imposing restrictive
candidates on the contract of any trade or business. A trade union is a organization of
employees in which the workers find the power attack on their problem
According to GDH cole A trade union means an association of workers in own
or more occupations an association carried on mainly for the purpose of protecting
and advancing the members economic interest on connecting with their daily work.
In Lokanath weavers industry that exist two trade union namely
CHU
INTUC

RETIREMENT
In LCWS retirement is at the age of 57. After retirement they are paid
gratitude depending on their services.
DISCIPLINARE ACTION TAKEN AT LCWS LTD

Oral reprimand
Domestic enquiry
Finding of the enquiry
Written warning
Suspension
Discharge
Dismissal

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SAFETY MEASURES TAKEN BY THE LCWS

ELIMINATION OF HAZARDS
PERSONNEL PROTECTIVE REQUIREMENTS
MAINTENANCE
PROPER LAYOUT AND DESIGN
PROPER TRAINING
SPOT ENQUIRY AND CHECKING

LEAVE STRUCTURE AT LCWS LTD


In adequate leave facility is an important cause of absenteeism. Leave benefits
can enjoy by the workers only if they have an at least 240 days of attendance and for
FACTORIES ACT 1948. The society provides a total of days of leave for staff
members and workers and also provided payment instead of casual leaves.

TOKEN SYSTEM
In this token system is used to make the attendance of the works. There exist
token boards from the workers at the time of their arrival have to take one token each
and put it on the box provided for the purpose. The society starts its function from
8.30 am and late coming of workers arrival after the permitted time will be market as
absent
MONETORY AND NON-MONETORY INCENTIVES
MONETORY INCENTIVES

EPE
As per the employees provident fund and miscellaneous provision Act 1952 a
provident fund shall be established for the benefits of worker. Under this scheme
monthly deduction from the employees are made. The total amount is despite with the

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provident fund commissioner in the prescribed manner. On superannuation the


employee gets full balance with the interest
GRATUITY
As per the payment of gratuity Act 1972 all employees are eligible for gratuity
irrespective of their wages. The society give prime importance for the safety or
welfare of workers and in order to ensure industrial safety the society provides safety
education training to workers and supervisors.
WAGES AND SALARIES
Both wages and salaries are paid in same formation. That is basic wage or
salary plus dearness allowances
WAGES = basic wages + DA
SALARY = basic salary + DA

BONUS
Bonus is cash paid for carrying out task. Usually society paid maximum
minimum bonus to employees

MAXIMUM BONUS
If in an accounting year the profit earned by the industry is maximum then the

employer should day bonus in proposition is to the salary or wages earned by the
employee during that accounting year. Generally in a co-operating. Society the
maximum bonus paid is 20% where as the LCWS LTD had paid a bones of 50% of
the employee.

MINIMUM BONUS
The minimum bones which an employees is required to pay even if it firm

suffer losses during the accounting year is 8.33%

WAGES PAYMENT
In LCWS page payment is based on task completed usually workloads for five

bundles are given per day. And if the workers are not able to complete it in particular
day they are allowed to cover it by the next day. In the case of damages in the cloth
carelessness of day of the worker the cost of such cloths will be recovered from the
wage of such workers.

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DECISION MARKETING
In LCWS the decisions are taken by board directors and the secretary the

board of directors having the meeting a fortnight or often it the necessary to conduct
the affairs of the firm. The president shall preside over the meeting of the board
several think are pointed out and discussed in the meeting. Mainly the discussion in
about the short, coming of the year problem faced presently discussion regarding the
payment. Problem of work etc. the quorum for the meeting board of directors shall be
decided by majority of vote. If there is an equality of vote the presidents or other
presiding member shall have a casting vote.
No member of the board of directors shall be present at meeting of the board
when any matter in which he is personally interested is being discussed increase of
urgency where there may not be sufficient time to convene a meeting of the board of
by the board of directors, the secretary may obtain the order of the board of directors
by circulation of papers among the member present at the head quarters of the firm
such decision arrived in circulation shall be placed before the meeting of the board of
directors for their satisfaction
Proper decision helps the firm to attain the objectives and goals.

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PERSONNEL DEPARTMENT CHART


Board of Directors

Secretary

Person in Charge

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FINANCE DEPARTMENT
Finance department is the nerve centre, which maintains systematic records
and controls income and pedicure of the factory. Account officers is the board of the
department. He was assistant accounts department
Finance manager is responsible for the day to day financial activities of the
firm. At the end of the financial year or period the financial manager importuned
movable property in the organization is called nerve centre.
In Lokanath weavers industrial co-operative society, the society has a good
finance department. They are recording all the financial dealings of the organization.
The company is following double book keeping system.
FUNCTION PERFORMED BY FINANCE DEPARTMENT
1. Preparation of finance statement at monthly half-yearly integrals
2. Maintaining of cash book, bill vouchers, bank book, involves, journals etc..
3. Reconciliation of bank balance
4. Receipts of fixed deposits
5. Transfer of found to the bank account
6. Recording all the transitions in appropriate books.
7. Calculating the cash required for day to day operations
8. Repayment of loan and its investment
9. Budgeting
10. Preparation of trail balance
11. Preparation training and profit and loss account and balance sheet

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SOURCE OF FINANCE
The main source of funds is raised from share capital from members. A fund
forms various. Government share, district co-operative bank and income from assets
i.e empty and waste cotton.

DUTIES OF FINANCE MANAGER


Financial planning
Procurement of fund
Estimating the capital requirement
Source of fund
Allocation and utilization of funds
Disposal of surplus
Financial control
FINANCE DEPARTMENT AT LCWS LTD
In Lokanath weaving company financial calculation is done by the financial
auditor, who himself prepares the accounts and statement of the company. Further the
accounts are balanced by the auditor and secretary check and then handover to board
of directors.
SOURCE OF FINANCE
Every company should maintain reliable source of finance. Such source
should be continues source. The main forces in LCWS are
Share capital
Cash credit
Capital
The company has share capital of 22400 and government share for 540000 and
a total of 762400

Company share capital

Capital of the society


222400

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Government share capital


Total share capital

540000
762400

CAPITAL STRUCTURE
Company requires capital to carry out its operation capital structure refers to
the completion or make up to the big term source of funds and as preference shares
debentures and loans. There should be correct preparation of these finance to the help
an optimum capital structure
ACCOUNTING POLICIES
The accounting policies of LCWS are:
a) The company maintains its amount on the historical cost conversation in
accordance with generally accepted accounting principles and compliances
with the accounting stand of the companies act 1956
b) Fixed assets are valued at the cost for acquisition on less depreciation
c) Retirement benefits showed inactivity
WORKING OF THE COMPANY
There has been increase in both production and sales as compared of last year.
Compared with this year company. Product has made good trust in its traditional local
markets. The company earned a trading profit of 536500.22. 2010. It is 240042.22
more than the previous tear.

WORKING CAPITAL
The term working capital literally means the capital required for a day to day
working of the business such as purchasing raw materials payment of wage etc

30

According to Shubin working capital is the amount of funds necessary to


cover the cost of operating the enterprises IN LCWS Ltd. The net working capital
during the year 2010 2011 is 9000982.40

ACCOUTING PROCEDURE
The LCWS ltd follows the Double Entry System of accounting the
accountant department and other department maintains various books of account
For recording the day to day transactions, cash receipts payment vouchers and
rough cash book are maintained manually. In LCWS all the book of accounts are
maintained manually.
FINANCIAL POLICY
In LCWS Ltd the chief finance policy is to bring is to in funds as they more out of
expensed. Another feature is that account signs all purchase indents and other
documents like bills voucher etc. under the risk of secretary and he has to answer for
them.
PROFIT DISPOSITION
1. Profit is the blood of any business. It is the rewarded awarded for risk ranking
Rules regarding the profit dispositive on of the LCWD ID are follows.
a) Fifteen percent of the net profit of the firm as declared by the Register
year after year it shall be carried to the reverse fund
b) Out of balance a dividend not exceeding 9% per annum on the paid up
value of each share may be paid to the member proportionately to the
amount of pain up share capital was so help in during the year
c) A sum not exceeding 7 percent of the net profit may be paid to the
common fund to be utilized for any of the propose mentioned in the
section 2 of the set VI of 1980, namely education and sanitation of the
general body wish so

31

d) Out of the balance, sum not exceeding two months salary any as the
description of the general body is paid a bonus to the members of the
Board
e) The balance if any is added to the reverse full all turn dispersible and
invisible profits are also taken to the reserve fund.
DEPOSITS
Lokanath weaving company may accept deposits from the member and non
members with a view of promote thrift and saving. Deposits may at the discretion of
the board of directs received at any time form members and none members. Deposits
are another part of borrowing there is mainly three deposits in LCWS Ltd
I.
II.
III.
IV.

They are
Thrift deposits
Fixed deposit
Recurring deposit

MAXIMUM BORROWING LIMIT


The total borrowing of the firm by both way of deposits or other wise and
whether from member or other including the state government shall not at any time
exceeds eight times the paid up share capital plus the reserve fund.
OTHER BORROWINGS
It shall be competent to the Board of directors to borrow funds by way of
deposits either for members or from institution registered under the co-operative
central Bank. The Lokanath Weaving. Company usually borrows funds from cooperative Bank. But no they have started raising fund from state Bank of Travancore
and union bank of India. The Bank also provides financial assistance to the company.
TAX
LCWS Ltd does not pay any tax for the handloom products. But they pay
taxes for timber and for some raw materials which being bought up in the industry.
Book and Accounts Maintained BI LCW ltd

32

Minutes book for recording the proceedings of the general body members
admission register and nomination register pay book cash book and receipt

book
Share application register
Register of fluid resource
General ledger and voucher
Ledger of borrowings suspend accounts register
Register of monthly receipt and disbursement
Register of dividend

FINANCIAL STATEMENT
In LCWD ltd financial auditor records the day to day happening of the firm for
affection participation in the affairs of the firm for affairs of the firm. All entries are
recorded in the books and the document regularly and completely
The need of financial statement thus arises select the entire picture of the firm.
Financial statement comprises of

Trading or manufacturing account


Profit and loss account
Balance sheet
Statement regarding the receipt and payment account

33

PRODUCTION DEPARTMENT
Production is any process or procedure designed to transform a set of input
element into a specified set output elements. Production is the basis activity all
industrial units. All other activities revolve step-by-step creation of one form of
materials into another through chemical or mechanical processing to create or
enhance a utility of products or services
Production management is conserved with planning organizing directing and
controlling the production system as to produce goods of the fright quality in the right
qualities according to the time schedule and at minimum cost in involves decisions
making concerned with production process
Production management since long has been associated with a factory
situation where goods produced in physical sense
Factory has been defined
Any premise in which persons are employed for the purpose of making
alerting repairing ornamenting, finishing clearing washing breaking demolishing or
adopted for sale any article.
Production may be defined as
The conversation of inputs- men machinery, money materials, methods and
management into output through a transformation process
Pictorial modal of production management
Labour materials energy

Input

Plant and facilities

Processes

Products or services

Output

34

AIMS AND FUNCTIONS OF PRODUCTION DEPARTMENT


Production is the functional area reasonable for turning Input in to finished
outputs through a series of production process. The production manager is reasonable
for making sure that raw material are provided and make into finished goods
effectively. He or she must make sure that work is carried out smoothly and must
make sure. That work is carried out smoothly and must surprise procedure for making
work more efficient and more enjoyable.
FIVE PRODUCTION SUB-FUNCTIONS
In manufacturing organization the production function may be split into five
sub function
1

Production planning
The production planning departments will stands and targets for each
section of the production process. The quality of products coming of a
production line will be closely monitored. In business focusing on lean
production line will be closely monitored. In business focusing on learn
production, quality will be monitored by all employees at every state of
production rather than at the end as is the case for business using quality
control approach.

purchase Department
The purchase department will be reasonable for providing the materials
components and equipment required to keep the production process running
smoothly. A viral aspect of this role is ensuring stocks arrive on time and to the
right quality.

store Department
The store department will be responding for stocking all necessary
tools, pares raw materials and equipment required to service the
manufacturing process. Where sourcing is unreliable buffer stocks need to be
keep and the use of computerized stock control system keeps at minimal but

necessary level for production to continue unhindered


design and technical support department

35

The design and technical support department will be responsible for


researching new products or modification to existing ones, estimating cost of
reproducing in different quality and by using different methods. It will also
responsible for the design and testing of new products processes and product
types. Together with development may also be responsible for work study and
5

suggestions as to how working practices can be improved


Work department
The work department will be concerned with manufacture of
products. This will include the maintenance of the production line and other
necessary repairs. The mark department may also have responsibility for
quality means fitness for product i.e, product process or service should do
exactly what is expected of it.

PRODUCTION DEPARTMENT AT LCWS LTD


Lokanath weaving company is mainly as porting company the product is
produced according to the order of the specified quality, design colour etc. for their
customer. In most cases the customer gives a sample and place orders. The weaving
master checks out the sample and identifies the particular yarn. It there is no such
stock of yarn, then they purchase it from the market. The color of the yarn is changed
from the date house after identifying the material needed for the sample production
process starts.
MACHINERY AND EQUIPMENTS
The company use only two machines and are available from outside the state
at locally. The society use variety of other equipment these are available from the
district itself and sometimes the societies itself manufactures these equipments with
the help of carpenter

BY PRODUCT
By product is the product which is made from the principle raw materials in
order to avoided the waste of the material.

36

In LCWS LTD products when the specific order for one item is cancelled the
byproduct the LCWS LTD are bags purse shopping bags etc. this result in the
effective utilization of the firm.
PRODUCTION PROCESS
Stage .1
1
2
3
4
5

Boiling
Bleaching
Washing
Dyeing
Drying

Stage .2
1. Warping
2. Warp joining
3. Weaving
Stage .3
1. Finishing
2. Cutting
3. Packing

PRODUCTION DEPARTMENT CHART

37

SECRETARY

WEAVING MASTER

WEAVING

WINBING

DYEING MASTER

WARPING

WARP JOINING
DYEING SECTION

WORKERS

WORKER

WORKERS

WORKERS
WORKERS

PLAN LOCATION

38

Location of an industry is important as the choice of location of business or a


shop in a city, unscientific and unplanned industrialization is harmful not only to the
industrial unit but also to the social and economic structure of the industry as a whole
LCWS LTD is situated CHOVA WHICH IS ABOUT 3.5 AWAY FROM
Kannur Railway station and working on common work shed with other facilities the
day house office building etc.. the industry located at CHOVVA offers the availability
also it offers a competitive market for the firm.
WHY DYE HOUSE APART FROM THE SOCIETY
In LCWS LTD, Dye house located apart from the company to make society is
a town area and is located nearer to schools general library etc. in the dye house
there is the use of chemicals which makes the environment as polluted. The reason is
to make fluent of environment as polluted. The reason is to make fluent of waste
water. Dye house of LCWS LTD provide a water purification system which helps to
clean the waste water. This cleaned water fall info the nearest river, thus the society
act as eco- friendly as a whole.
PLAN LAYOUT
Plan layout is referred to as the arrangement and location of different
departments and of the machinery in a department so that optimum utilization of
space available can be made with the view to enabling the plant to function in an
effective manner.
A complete layout project the master plan for physically integrating the factors
of producing which are required in the premises. Plant layout results in high material
handling costs, ideal machinery large in process inventories and excessive space
requirement to mention only a few of the consequent inefficiencies.
In Lokanath weaving company the yarns which have been stored or purchase
moves to the dye house for dyeing the yarn. After dying it goes for winding and them
warping after warping if moves in to weaving section then to cutting and sticking

39

section. After the producing is moved to packing section further it is stored till the
delivery.
PRODUCING PLANNING AND CONTROLING
Before starting any work it is necessary to plan property for getting better
results. Production planning involves the planning of various input like men
machines, materials etc. for a given period of time so that the customer could get the
right quality or products at the right place price and at right time.
In LCWS LTD pre-planning is done by for casting the holiday i9n the last 3
years 2010, 2011, 2012 the production were 65,48,37,4.00,64,70,100.00 and 62,18
065.00 rupees respectively. Availability of raw material and customer needs are the
base for predation predate controlling activities are done by the secretary in the
society.

LIGHTING
Lighting is of the physical facility required in factory. Adequate and good
lighting in necessary for a worker so that he may see minute detail of his job with ease
and accuracy. Lighting is said to be good when it is free from galleries and is properly
diffused its color should be pleasant and its flow should also be direct and steady
In LCWS LTD companies provide daylight an arftification illumination totally
provides with 110 tubes 48 tubes is used in the weaving department itself.

VENTILATION
It means to the free flow of air from outdoor and vice versa. Ventilation may
be natural and artification ventilation.
In LCWS LTD provide only natural ventilation through doors windows, air
holes etc. for workers. The staff member provided with artificial ventilation that is use
of fans.

40

PURCHASE DEPARTMENT
Purchase is a managerial activity that goes beyond the simple act buying it
includes research and development for the selection of material and follow up to
ensure timely delivery of smooth flow of production
In LCWS LTD the purchase department is set up under office administration
here, the material needed for the production process. So the purchase department
makes available the needed stock at the required time for the smooth operation of
production.
RAW MATERIALS
Raw materials are those industrial goods which in part or in whole become a
portion of physical production or economy in storage transportation or handing
Yarn is a long continues length if inter looked fiber suitable for use in the
production of textiles sewing weaving rope making etc.
Nature or types determine which type of cloth sheets LIKE 2/70s yarn 216
yarns using for weaving more soft cloths.
DYES
Company purchase a variety of chemical and dye for dying processes. Here
vat dyes are suing for dying nature determines what quantity required for each
dying.
CHEMICALS
The society use chemical for boiling bleaching and for coloring the yarn. The
color of the yarn is changed by adding the chemicals. Some of the chemical are not
available from the local market. Itself they are purchased from Maharashtra,
Coimbatore and Ahmadabad.

41

PURCHASE DEPARTMENT
SECRETARY

WEAVING MASTER

DYEING MASTER

WORKETS

QUALITY CONTROL

42

Quality of products and working process are check in process are check in
quality controlling. It is necessary for the production of good with high quality. There
for quality controlling is done by three technical supervisors. Dyeing master is the
supervisor in dying section the given instruction to the worker, fix the quality of dyes
requested and ensure the quality of yarn after dyeing.
Weaving master supervise weaving process in weaving section. He gives the
direction for weaving different types of materials in various patterns. He measuring
the quality after weaving the common technical supervisor. He controlling the quality
of the products after finished process is conducted for obtaining of good quality it the
material.

PRODUCTION PROBLEM AT LCWS LTD


1.
2.
3.
4.
5.
6.
7.

None availability of raw material


Cause delay in case of new patterns
Non availability of adequate number of workers
Price of raw material change at a time
Unable to manufacture the while color and light color products.
During rainy season it is difficult to drying the yarn, it cause delay
Matching problems.

MARKETING DEPARTMENT
Marketing is the process of communicating the value of product or services to
customers. Marketing might sometime be interpreted as the art of selling product but

43

sale is only as the part of marketing. Marketing is the overall strategy and function of
promoting of service to customers.
Marketing is the link between societys material requirement and its economic
pattern satisfies the needs and wants through exchange process and building long
team relationship. The process of communicating the value of product or service
through positioning the customers. Marketing can be looked as an organization
function and set the process for creating, delivering and communicating value to
customers
Marketing is the science of choosing target market through market analysis
and market segmentation as well as understanding customers buying behaviors and
providing superior customer value.
Thus marketing is the process of providing the right product of the right
quantity in the right place at the right time. It is the process of creating, distributing,
promoting and pricing goods, service and ideas to facilitate satisfying exchange
relationship in a dynamic environment.

COMPONANTS OF MARKETING CONCEPTS


The components of marketing concept are as under.,
1. Satisfaction of customers:
In the modem area, the customer is the focus of the organization. The
organization should aim at producing those goods and services which will lead to
satisfaction of customers.
2. Integrated marketing:
The function of production, finance and marketing should be integrated to
satisfy the needs and expectations of customers.
3. Profitable sales volume:

44

Marketing is successful only when it is capable of maximizing profitable sales


and achieves long run customer satisfaction.

IMPORTANCE OF MARKETING
The importance of marketing can be discussed in three heads as consumers, firms and
society.
1. Importance to consumers:
Marketing provide information about product and services. It helps them to
know the benefits and techniques of product through advertising, publicity and
public relation.

Marketing provides satisfaction to customers by giving different

product to meet their demand and taste when they need.


Marketing help to developing standards of living through providing

technological product and services


Marketing increase the buying habit of consumers mainly through
advertisement, offers and discounts. Consumers buy more on fewer

prices.
2. Importance to firms:
Marketing minimize the risk of distribution through adopting
proper and effective distribution channels such as warehousing and

transportation system.
Marketing helps in planning. It provides valuable information to
management about the market including consumer demand, cost of

production and sales.


Marketing helps to maximize the profit. The various information
and statements relating to sales, production etc helps to reduce
unnecessary cost and utilize the revenue in proper way, it makes

more profit.
3. Importance to society
Marketing creating employment opportunities.
Marketing increase the standard of living of the people.
Marketing utilize, natural, financial, physical and human resources.
These resources help economic development of the country.

45

Marketing brings proper development of nation. The large number


of business creates travelling facilities such as road, railway,
seaport etc with the help of Govt. For the export and import
process.

MARKETING FUNCTION
Marketing function is defined as all activities of operation or service by which
original product and the final consumers are linked. All marketing functions can be
classified into four. These are as follows;

FUNCTION OF MARKETING

46

MARKETING FUNCTION

RESERCH

EXCHANGE

PHISICAL SUPPLY

FACILITATING

TRANPORTATIONSTORAG & WARE HOUSE


MARKETING PRODUCT
RESERCH PLANNING & DEVELOPMENT

BUYING & SELLING

FINANCING

SELLING

RISK BEARING MARKETING INFORMATION


STANDARDISATION & GRAND

RESEARCH FUNCTION:

47

The research function of marketing is that enables you to generate adequate


information regarding your particular target market. You must carry out adequate
research to identify the size, behavior, culture, believe, gender etc of your target
market. This function is sub divided into two;
a) Marketing research:
It refers to the intelligence service of the organization. Marketing research helps in
analyzing the buyers habit, popularity of the product, effectiveness of advertising
media etc. Marketing manager taking for better decision.
b) Product planning and development:
Product must be designed and developed that it meet the requirement of the
customers. For this systematic product planning and developed is necessary. Product
planning and development refers to planning and developing of product which exactly
match to consumers.

EXCHANGE FUNCTION
Goods are produced for satisfying human wants. This is achieved only when goods
finally reached the hands of consumers. The process of passing goods into consumers
hand is called exchange. This function is subdivided into two;
a) Buying and assembling:
The buying function is performed in order to acquire quality materials for
production. The function of collecting and concentrating gods of the same time from
different sources at a place is called assembling. Assembling not only includes the
collection of goods at one place but also grading, storing, sorting and assumption of
risk.
b) Selling:
The basic objective of all marketing activities is to sell goods and services and
make profit. Selling help a firm in achieving its objectives by satisfying the needs and

48

wants of customers. Selling means finding the customers and transferring the goods
them for them for money.

PHISICAL SUPPLY FUNCTION


There are the functions related with creation of place and time utilities. Physical
transfer of goods from the manufacture to the consumer taken place by means of
transportation and storage. This function includes;
a) Transportation:
It refers to the physical movement of goods or material from the point of origin to
the point of conception. It help the manufactures to bring material into factories and to
send to product into market. Transportation provides place utility to the product.

b) Storage and Warehousing:


Storage means holding and preserving the goods from the time they are produced
until they are needed by customers. It enables goods to be made available to
consumers whenever they are needed. Thus, storage create time utility.
Warehousing is an act of storing and ascertaining finished goods so as to create
adequate time utility at a minimum possible time.
c) Packaging:
In modem days it is used by manufacturer to establish his branded product as
district from those of competitors. Packaging is the function of designing and
producing the package of product.

FACILITATING FUNCTION:
These functions are subsidiary in nature. But they have a direct relationship with
the marketing process and hence important. These functions help the primary function
of buying, selling, storage etc. This makes the marketing functions easily. This
includes;

49

a) Financing:
It is required for production as well as for marketing. Marketing required adequate
finance for performing various marketing function. It is said that finance is the lye
blood of modem business. Without adequate flow of fund, it is not possible to conduct
marketing activities.
b) Risk bearing:
The process of moving a finished product from the point of production to the point
of consumption is characterized with lots of risk such as product damage, pilferage
and default etc. They business is dynamic and full of risk and uncertainty.
c) Marketing Information:
The accurate marketing information can change the market condition. Successful
marketing requires correct and timely decisions. Decisions are taken on the basis of
information relating customers wants, their habits, their purchasing power, supply and
demand market trend, pricing policies of competitors
d) Standardization and Grading
Standardization means establishing certain standard for a commodity on the basis of
desired features like quality, disability, colour, size, design, safety etc, effecting the
commercial value of a product.
Grading means classification of standard product into certain classes. It is the process
of sorting out the product into classes made up of unit processing, similar size and
quality

RECENT TRENDS IN MARKETING

50

Social emphasis:

Marketing is concerned with the long term health and happiness of marketing on the
net. The volume of business through net is increase.

More concern about quality:

Now a day a tendency is seen in the customers that are more concerned about quality
of the product than price. Marketing gives importance to value added marketing.

Retaining customers:
Now marketing realize that retaining existing customer is more profitable than

running after new customers.

Discount shopping:

Discount shopping is the recent trend in the marketing field. Now a days companies
offer many types of discounts to the customers.

Non business marketing:

Marketing is applied not only business organization but also non business
organization. Voluntary institutions are adopting principles and practices to marketing
to promote their ideologies, welfare schemes and programmes in general.

Concentrating in rural marketing:

There is a tendency on the part of many market to concentrate on rural segment to tap
the market potential.

Herbal world:

A green revolution is taking place in the fast moving consuming goods sector. A
herbal tag attached to a product is enough to make itself.

More and more competition:

51

Increasing competition is an important features of modem marketing and brought


about many changes in the field of marketing

MARKETING PROBLEMS OF SMALL SCALE UNIT


All type of business enterprise face making problems, but these problem are more
severe in case of small scale unit because of lack of knowledge, inadequate funds and
lack of experience. Some of marketing problem commonly faced by small scale
entrepreneurs in India are;
1) Competition from large scale sector:
Because of scarcity of recourses, small entrepreneurs usually use inferior
technology. As a result their product are not standardized. The obsolete technology
used by them gets translated into inferior quality of products.
2) Lack of marketing knowledge:
Most of the small scale entrepreneurs are not highly educated or professionally
qualified to have knowledge for effective sales promotion. Large scale unit mostly
have well known branded names.
3) Weak bargaining power:
At the time of purchase of inputs, large scale entrepreneurs manage to get huge
discount and credit. Such facilities are not available to small units.
4) Product quality
It is costly and difficult for small unit to have quality testing and evaluating
equipment

5) Lack of sales promotion

52

Small unit lack the resources and knowledge for effective sales promotion. Large
scale units mostly have well know branded names. They also have huge amount of
resources to spend on advertisement and other sales promotion tools.
6) Credit sales
The small scale enterprise is invariably called upon to sell on credit. However, when
comes to purchasing inputs, they are denied liberal credit facilities. As a result they to
borrow excessive work capital than actually needed. This increase the general cost of
production and price, making it non-competitive.

MAIN EXPORTING COUNTRIES:


Following are the main exporting countries of Loath Weavers;
Germany
U.S.A
England
France
Switzerland
Denmark
The most demanded products in foreign markets are curtains, wall hanging, bed
cover, carpet etc.

MARKETING MIX:

53

Marketing mix is an important tool used by marketing manager to design the


process of marketing in an organization. According to Philip kotler marketing mix can
be define as the amount and the kinds of marketing variables a firm is using at a
particular time. Marketing mix is ended to disburse a combination of four elements in
marketing which are poorly known as 4 Ps. They are;
PRODUCT
PRICE
PLACE
PROMOTION
Marketing mix is developed to satisfy the anticipated needs of the customers and
to achieve the objectives of the organization. The elements in the marketing mix must
be balanced and properly co-oriented to achieve optimum marketing mix.

MARKETING MIX CHART

PRODUCT

PLACE

TARGET MARKET

PRICE

PROMOTION

MAJOR COMPETITORES
Azhikkal weavers industrial (workshop) Co-operative society Ltd. No.HL.IND
(C) 20,

54

Chirakkal weavers Co operative P&S. Society Ltd.NOH.201

Irinav Weavers industrial (workshop co-operative society Ltd. No. HL.1ND.


(C)19,

Kadathanad Weavers industrial co-operative society Ltd. No. HL.IND(D)167


Kanhirode Weavers Co-operative P&S Society Ltd. No. LL-44
Karivellur Weavers Co-operative P&S Society Ltd. No. F-1391
Kerala Handloom Weavers Industrial Co-operative Society Ltd. No.H.227
Kerala State Handloom Weavers Co-operative Society Ltd. (HANTEX). P. B.
No. 64,
Kuthuparamba Weavers Co-operative Society Ltd
Mayyannur Weavers co-operative (P&S) Society Ltd. No. F-1318
Morazha Weavers Industrial Co-operative Society Ltd.No HL. IND(C)5,
Payyannur Weavers Co-operative Society Ltd. No. F. 1305

MARKETING DEPARTMENT CHART


SECRETARY

STORE KEEPER

DISTRIBUTORS

55

56

CHAPTER-III
DATA ANALYSIS AND INTERPRETAION

DATA ANALYSIS AND INTERPRETATION


TABLE NO. 3.1:
Table showing comparison between Advertising Expense and Net Sales

57

Year

Advertising

Net Sales

Advertising

Expenses

Expense

2011-2012
122171
2012-2013
69467
2013-2014
26822
2014-2015
48130
Total
266590
Source: Primary Data

Ratio (%)
0.48
0.31
0.10
0.20
0.27

25225805
22341934
26308710
23719552
97596001

Advertising expense ratio: Advertising expense ratio is the relationship between


advertising expenses and net sales.
Advertising expense ratio

= Advertising expense /Net sales * 100

CHART NO 3.1
1

1 0.48

0.5
0.4

0.31

0.3

0.2

0.2

0.1

0.1
0

2011-2012

2012-2013

2013-2014

2014-2015

Advertising Expense Ratio (%)

INFERENCE: Only a minute amount is spend on advertisement when compared


to the net sales. It is recommendable that a slight improvement on advertisement
can be made
TABLE NO. 3.2:
Table showing brand preference of the customer
Particulars

No. of

Percentage

respondents
Kanhirode

20

40

58

Weavers Co-operative P&S Society,


Kannur
Lokanath

Weavers

Co-operative

,Kannur
Kannur Weaving Mill,Mahi
Kannur WCSL,Kakkad
Total
Source: Primary Data

18

16
5
50

32
10
100

CHART NO 3.2
Chart showing brand preference of the customers.
40
40
35
30
25
20
15
10
5
0

32
18
1

10

Percentage

INFERENCE: LWCS products are preferred by a large number of people.

TABLE NO. 3.3


Table showing the opinion regarding the factors affecting towards the
product
Particulars
Quality
Price
Durability

No. of respondents
22
8
11

Percentage
44
16
22

59

Packing
Discount
Total
Source: Primary Data

5
4
50

10
8
100

CHART NO 3.3
Chart showing the opinion regarding the factors affecting towards the
product
44
45
40
35
30

22

25
16

20
15

10

10
5
0

1
Quality

2
Price

Durability

Packing

Discount

Percentage

INFERENCE: Quality is the foremost factor that affects the sale of a product.
Durability stands the next.

TABLE NO. 3.4


Table showing the customers opinion about the quality of product
Particulars
Highly satisfied
Somewhat

No. of respondents
38
8

76
16

Percentage

satisfied
Neither satisfied

nor dissatisfied
Dissatisfied
Highly satisfied

1
0

2
0

60

Total
Source: Primary Data

50

100

CHART NO 3.4
Chart showing the customers opinion about the quality of product
76
80
70
60
50
40
30
20
10
0

16

Percentage

INFERENCE: LWCS products are well popular on their product on their product
quality. About 76% people are highly satisfied about the quality of the product.

TABLE NO. 3. 5
Table showing the highly profit making products of the society
Particulars
Made ups
Furnishing
fabrics
Sarees
Total
Source: Primary Data

No. of respondents
24
14

48
28

Percentage

12
50

24
100

CHART NO 3.5
Chart showing the highly profit making products of the society

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Sarees; 24%
Made ups; 48%

Furnishing fabrics; 28%

INFERENCE: it is the manufacturing and selling of made-ups ,that brings high


rate of profit in the society. And the next profit making product is furnishing
fabrics.

TABLE NO. 3.6


Table showing the customers opinion about the price of the product

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Particulars
Highly satisfied
Satisfied
Neither satisfied nor
dissatisfied
Dissatisfied
Total
Source: Primary Data

No. of respondents
17
27
2

Percentage
34
54
4

4
50

8
100

CHART NO 3. 6:
Chart showing the customers opinion about the price of the product
60
50
40
30
20
10
0

Percentage

INFERENCE: Saying about the price of the product ,54% of the people are
satisfied and 34% of people are highly satisfied. But, it should be noted that a 4%
of people are dissatisfied on the same.

TABLE NO. 3.7


Table showing the customers opinion about the packing and labeling of the
product.
Particulars

No. of respondents

Percentage

63

Excellent
Very good
Good
Average
Poor
Total
Source: Primary Data

30
14
5
1
0
50

60
28
10
2
0
100

CHART NO 3.7:
Chart showing the customers opinion about the packing and labeling of the
product.
60
60
50
40
28
30
20

10

10
0

2
Excellent

Very good

Good

Average

Poor
0

Percentage

INFERENCE: LWCS products do not face any complaint regarding the packing
and labeling of their products. Of the 50 people,30 of them stated, excellent.

TABLE NO. 3.8:


Table showing the innovativeness of weaveco brand in markets
Particulars
Excellent
Very good
Good
Average
Poor

No. of respondents
15
18
11
6
0

Percentage
30
36
22
12
0

64

Total
Source: Primary Data

50

100

CHART NO 3.8:
Pie chart showing the innovativeness of weaveco brand in markets

12%

30%

Excellent

22%

Very good
Good
Average

36%

Poor

INFERENCE :the innovative brought in LWCS products is good enough.36% of


people remark it as very good, when 30% says excellent.

TABLE NO. 3.9:


Table showing the requirements needed to satisfy the respondents more
Particulars
Improve quality
Reduce price
Retain brand image
Innovativeness
Poor
Total
Source: Primary Data

Percentage
25
54
16
05
0
100

65

CHART NO 3.9
Chart showing the requirements needed to satisfy the respondents more
54
60
50
40
30
20
10
0

25
16
5

Percentage

INFERENCE: More than 50% of people recommend on price reduction of the


products for more customer satisfaction

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CHAPTER-IV
FINDINGS, SUGGESTIONS AND CONCLUSION

4.1 FINDINGS
Lokanath Weavers Industrial Co-operative Society is a reputed society
engaged in producing variety of product with the help of efficient workers.
Quality is the main factor that influences the purchasing decision of the
customers of the society.
The promotional activities undertaken by the society is less satiety.
While analyzing the marketing mix of the society it is pointed out that the
society produce one product at different variety by change in the size and
shape.

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Lokanath Weavers society protects and promotes handloom sector through its
operation.
Employees viewed that internet trading is the most profitable training method.
The main speciality of handloom product is it is traditional and high quality.
The main problem faced by the society is competition.
There is an efficient marketing department in Lokanath

4.2 SUGGESTIONS
Technology up gradation is a must in these industries to meet the competition
and to widen the market for handloom product.
There is a need in recognize the value of handloom sector in sustainable
development.
Budget allocation has to increase with news scheme which address the
problem of the sector.
A better facility like land water and electricity is to provide.

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Take measures to attack worker such as conduct seminar about the values of
weaving and make aware about the varies Government offers provide to
workers.
Make constant search for activities of power loom and consider consumer
satisfaction id the ultimate goal an always.

4.3 CONCLUSION
Lokanath Weavers Industrial Co-operative Society is the co-operative firms
produce a variety of product to customers. They prefer bulk orders from customers.
The society undertakes various market promotion schemes to attract its customers.
Due care has been given to customer's needs and wants while marketing their product.
Despite of all these the society is still facing continuous loss mainly due to stiff
competition from Power looms and other weaving society and also due to inefficient
marketing activities. The society should avail assistance from the central and local
Govt. For introducing attractive marketing Medias. Continuous effort should be made
in build up innovative marketing schemes so as to attract its customers. By doing so

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the society can retain high position in the locality and overcome a major portion of its
difficulties by bringing constant improvement in the marketing activities which
constitute a major part of the society for its growth and progress.