CONTENTS

SI.NO TITLE PAGE NO

1 INTRODUCTION ABOUT THE COMPANY 5-9

2 ORGANISATION STRUCTURE 11-19

3 PRODUCTS 21-22

4 MARKETING 24-26

5 SWOT ANALYSIS 28-29

6 FINDINGS & SUGGESTIONS & CONCLUSION 31-32

1
 INTRODUCTION

An organization study is an essential factor for understanding how a

management works practically. It is important opportunity available to a
management student so that the student will be able to understand about
the organization and its functions in a detailed and practical manner. This
study analyses the functioning of the various departments in an
organization. Organization study deals with the studying of the overall
structure of an organization. The organizational study also involves the
study of the rules and regulations prevailing in an organization.
Organization study helps a management student to understand to what
extend management theory matches with actual practice. The glorious
Indian industrial past was related with cotton and silk goods, jewels and
embroideries. After independence, large scale industries especially in
consumer goods like cotton textiles, jute and sugar had registered
significant growth. Large scale industrial sector is one of those sectors that
paved the way for economic growth in a country like India. Cotton textile
industry is a major large sale industry and contributed about 20% of the
total industrial output of the country.

SIGNIFICANCE OF THE STUDY

In today’s world, business has become more competitive and the

technology has changed the nature of business and organization. This study
analyses in detail about the functions of different departments based on the
SWOT analysis. The findings of the study gave valuable information for
improving the overall performance of the organization.

OBJECTIVES OF THE STUDY

The objectives of this organizational study were:-

 To understand about the organization structure of the Hantex

 To study in detail about the different functional departments in the
organization.

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  To find out the Strength, Weakness, Opportunities, Threats of the
company.

PERIOD OF THE STUDY

It was conducted from 23rd September 2019 to 1st October 2019.


SOURCES OF DATA

There are two types of data used in the organization study such as

 Primary Data

 Secondary Data.

These sources of data are used for the study.

PRIMARY DATA

Primary data do not exist already in records and publications.

Primary data is the data collected for the first time. They are original in
character and collected for particular purpose.

SECONDARY DATA

Secondary data refers to those data which are gathered for some
other purpose and are already available in the form of internal records and
commercial trade or government publications. Some of the sources of
secondary data include:

a) Various company records

b) Company manuals

c)Internet (Various websites)

3
 CHAPTER 1

INTRODUCTION ABOUT THE COMPANY

4
 CHAPTER 1

INTRODUCTION ABOUT THE COMPANY

The ultimate aim of every organization is to attain a strong existence within

the market, by facilitating a good profit, wealth and to maximize the same. To
have a stable competition and existence,
the proper use of its financial resources is to be well achieved. Human
resources are the inevitable part of an organization. So, a Human Resource has a
major Role in a organization.
The drawn of 1961 amazingly witnessed the meteoric rise of The
Handloom Weavers Co-operative society ltd. “HANTEX” the one and only
umbrella for the weavers in the co-operative sector in Kerala. Lacks of weavers
who can increate any type of intricate designs with their magical craft creativity
in to the handloom fabrics with coarser or finer yarn capable of meeting present
day global standards.
The textiles industry plays an important role in Indian as well as global
economy. In addition to the direct employment, it provides indirect employment
to 5 persons in every weaver in the loom engaged in production. Besides all these,
the industry through the backward and forward linkage effects generates
employment for many others such as loom and accessories manufacturers, dyers,
printers, processor, twisters, sellers etc. on the whole the industry provides a total
of 5.5 per cent of the employment in the decentralized sector of the country’s
economy.

HISTORY OF THE COMPANY

The Kerala handloom weaver’s co-operative society was formed by

merging the Kerala State Handloom Weaver’s Co-operative society limited no:
H232 also known as HANTEX are registered as co-operative society under
Kerala state handloom weavers co-operative society (special statute) act 1960. It
is the apex organization of primary co-operative sponsored by the Government of

5
Kerala. The registered office of the society is at Thiruvananthapuram, the capital
of Kerala. HANTEX having around 450 primary handloom weaver’s co-
operative societies was formed in 1961 with the objective of organizing the state
on sound commercial basis.
Regional apex bodies of Travancore, Cochin and Malabar. The authorized
capital of society is Rs 20 corers consisting 4 lacks share of 500 each. The
membership of society is opened to all primary weavers’ co-operatives besides
the state government.
HANTEX is functional according to Kerala state co-operative society Act
1969. It renders assistance for the members in production and marketing of
products. HANTEX produces and markets and incredible quantum of handloom
cloth consisting five million meter per annum, giving a unique look, feel eco-
friendly comfort. The latest innovations are used in the design departments of
HANTEX with the help of computer aided design (CAD) international markets.
HANTEX HAS 151 showrooms through the country. Out of which
149showrooms are in Kerala and two are in Tamil Nadu.
The products of HANTEX have high demand throughout Kerala state in
competition with co-open (Tamil Nadu co-operative society) products. The
Government of Kerala are extending quality control measures and design
improvements though its personal attached to all district centers its benefits are
seldom reach to individual weavers.
For checking out the product strategy for each region, HANTEX sought
the help of national institute of design Ahmadabad and weaver’s service center
Kannur.
HANTEX has set up a processing plant at Balaramapuram with an out lay
of Rs 1 core with financial assistance of the government of India. The main
objective of this center is to make innovations in weaving, printing and designing
of textile by the aid of computers and also make the best allocation of financial
assistance which got from the government.
Co-operative limited of Baroda is also involved in the program of
increasing polyester production. HANTEX polyester cloths have got a very good
demand in the market. It has also succeeded in introducing a wide range of printed
varieties in sarees, furnishing cloths and bed sheets. Polyster double dhoti’s and
sarees introduced the HANTEX have recognized wide acceptance from public.
50% of showroom sales revenue is obtained from the government servants
who are availed by the credit facilities. This scheme was started in year 1973.
HANTEX is giving 13% of excess to production cost to the primary
societies from where the goods have collected. This 13% is the profits to primary

6
societies of the HANTEX. The price is fixed by adding 20 to 30% over it, before
it was marketed.
For the betterment of 2.5 lack people associated with the handloom
industry in the state it is very essential to strength the apex body.
AREA WISE ANALYSIS OF HANDLOOM
Kerala has 14 districts from Thiruvanthapuram to Kasargode. The
handloom industry is concentrated in certain places of the state. Kerala is famous
for its superfine products like sarees, dhothis, and set ‘mundu’, etc. the middle
Kerala is also enjoyed with such products. But while going to northen side called
Malabar the main production changed to coarser verities like furnishing items,
bed sheet, towels, etc. the common products in Kerala are ‘throthu’ and lungies.
Almost 2 lack weavers are earning their livelihood from the handloom and 75%
of them are in the co-operative line. Almost 5 lack families depending on
handloom industry.
The following are the 12 districts the HANTEX have branches
1. Thiruvanthapuram
2. Kollam
3. Pathanamthitta
4. Alappuzha
5. Kottayam
6. Idukki
7. Eranakulam
8. Thrissur
9. Kozhikode
10.Wayanad
11.Kannur
12.Kasargode

Development and Achievements

7
 The share capital of the society was 3 corers when it was formed. But now
the authorized share capital of the society is 20 corers. HANTEX is a protective
umbrella to around 450 primary societies, which stated its operations with around
71 outlets and an annual sale of around Rs 27 lacks in 1961 has today grown to a
large enterprise with 151 sales out lets.
The procurement of handloom goods in 1961-2002 was around 17 lacks.
In the year 1994-2000it has grown to Rs 35 corers. HANTEX divides Kerala
into 7 regions and it has 7 regional offices. They are situated at
Thiruvanthapuram, Kollam, Kottyam, Eranakulam, Thrissur, Kozhikode and
Kannur.

NATURE OF ACTIVITY

This is a spinning mill engaged in the production and distribution of yarn

to different part of the country. The basic raw material of the company is cotton
and polyester. Cotton and polyester are purchased, centrally by head office and
allocated to each mill according to the spinning plan approved by the head office.
Each lot of the cotton or polyester received by mill is weighted and recorded in
the register maintained. The cotton or polyester are issued to production
department on the basis of moving weighted average cost.

VISION
To organize and uplift the handloom industry and for the development of
weavers all through the state.
MISSION
 To organize and market the products of primary societies
 To create employment opportunities in rural areas
 To bring and co-ordinate all the members societies under single head.

OBJECTIVES
 To Know about the interpersonal relation among the employees
 To know about relationship between different departments in HANTEX
 To study the overall performance of the organization

The important objectives of HANTEX are the following:

 To organize and promote handloom industry on commercial basis

8
  To give financial assistance to the member societies.
 To supply raw materials to the affiliated societies.
 To market the finished products of member societies.
 To supply improved appliances to member societies.
 To develop, assist, direct and control the working of affiliated
weavers societies
 To establish and run depots within or outside the state for exhibition
and sales of products.
 To advice the societies regarding the production of improved and
easily marketable pattern and design.
 To coordinate all member societies under one umbrella
 To provide employment in rural areas.

One of the major objectives of all the society is to assist the primary
Handloom products within and outside the state. In order to meet objectives
HANTEX distributes raw materials and looms on outright or loan basis to the
establishment of units for bleaching, drying, and printing.

FUTURE PLANS AND PROCEDURE

The future plans of the company is implementing good quality products

and setting the new wage system for the employees.

9
 CHAPTER 2

ORGANISATION STRUCTURE

10
 CHAPTER 2

ORGANIZATIONAL STRUCTURE OF HANTEX

BOARD OF DIRECTORS

PRESIDENT

MANAGING DIRECTOR

MARKETING
ADMINISTRATIVE MANAGEMENT
FINANCE
MANAGER MANAGER

Dty.ADMINISTRATIONOFFI Dty.FINANCE
CER MANAGER

ADMINISTRATION FINANCIAL
ASSISTANT

SENIOR SENIOR
SUPERINTENT

JUNIOR SUPERINTENT SENIOR ASSISTANT

Dty.MARKETING Dty.PRODUCTION
MANAGER MANAGER

TECHNICAL OFFICER Dty.PURCHASE

MANAGER

TECHNICAL
SUPERVISOR TECHNICAL
SENIOR REGIONAL OFFICER

TECHNICAL
SUPERVISOR

11
FUNCTIONAL DEPARTMENTS
There are three important departments are functioning in HANTEX. They
are
1. Marketing Department
2. Finance Department
3. Administrative Department

Marketing Department
Marketing manager is the head of the department. There deputy marketing
managers are appointed for assisting him. One deputy marketing manager deals
with general aspects of marketing products and services and other deals with
production and technical aspects. Role of marketing manager is to implement the
jobs allocated to him by top executives. The price fixing to the products is cost
plus, pricing. It involves 13% of the profit to primary societies. Price of the
product includes procurement cost + 15 to 30% of the profit to HANTEX. The
products of HANTEX are mostly purchased by ladies and middle aged persons.
Marketing of the HANTEX’s products are based on festival seasonal. The
marketing of the products of HANTEX are;
1. Seasonal Marketing
2. Government sale or bulk sale
3. Export Marketing

Marketing of HANTEX Products

12
 MARKETING

FESTIVAL SEASON GOVERNMENT EXPORTING

SALES SUPPLY

More than half of the total sale of HANTEX is achieved in Onam season.
Government gives 30% of the rebate on the products of HANTEX for boosting
up sales. The huge purchase of the cloth made by various government
departments are another consumer of handloom product. Now government is
planning to purchase handloom fabrics for police departments, KSRTC, health
departments, municipality corporations and tourism department.

Functions
 Market analysis
 Identification of the product is specially moving in the market
 New product development as per feedback of market lies diversification of
product pre loom processing and post loom processing.
 Giving intent i.e., giving instructions regarding quality thickness, time
allotted for production etc for the member societies.
 Identification of production centers for production of each variety of
products
 Procurement of the product by HANTEX
 Distribution of goods to HANTEX’s sales depots
 Sales promotion works
 Depot renovation works
 Implementation of project package scheme
 Providing yarn to primary societies in subsidized rates

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  Implementation of demand oriented production programs

Finance department
Financial manager is the supreme authority of the finance department. He
is responsible for the financial matters as well as the board of directors. There is
deputy finance manager to assist financial manager in his duties. The main
function of the finance manager is to take decisions regarding utilization of funds.
The major source of finance is from government and the member societies in the
form of shares. HANTEX got finance also from NABARD co-operative bank as
loan and cash credit, grants from the government etc.
Depreciation is calculated on diminishing balance method application of
standard costing principles are only limited. There is no formal volume cost profit
analysis and there is no sufficient working capital for the organization.
Budget is being prepared yearly and it is being prepared for each and every
item and finally a master budget is also prepared. Rolling budget is not practiced
in the organization. The budget is prepared by the finance manager with the co-
ordination of managing director. Board is the budget controller and the
department heads such as marketing manager, administrative manager and
finance manager are in the budget committee. Trend methods are used for the
preparation of budget.

Structure of finance department

FINANCE MANAGER

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Functions
 Supervision of all financial accounts
 Watching of bank operations
 Accessing the financial position
 Procurement of finance from NABARD, Co-operative banks,
government etc
 Proposal for the utilization of the fund
 Preparing of budgets
 Preparing of profit and loss account and balance sheet
 Preparing of yearly reports

ADMINISTRATIVE DEPARTMENT
The role of administration department within an organization is too process
all of the admin and direction for the rest of the company. There are many
different departments that need to have different things have done with their
admin. The department lies within the directorate of finance and administration.

15
If is tasked with providing administrative and logistical support to the entire
organization.
Mandate of Administration Department include:
 General office management and running
 Transport management
 Registry management
 Assets management
 Property management
 Security and safety

Administrative department is headed by administration officer. There are

two deputy administration officers to assist him. And there are some junior
superintendents and clerks for the successful running of the department.
All staffs of the organization come under the department. This department
deals with matters relating to salary, wages, bonus, allowances etc. of all the
workers in the organization. The major problem in this department is that
adequate persons are not available and it affect smooth running of all departments
and the entire organization. This department maintains employee profile,
educational records, carrier profiles and payroll data.

Structure of administration department

16
 ADMINISTRATIVE MANAGER

DEPUTY ADMINISTRATION OFFICER

ADMINISTRATION ASSISTANT

SENIOR SUPERINTENDENT

JUNIOR SUPERINTENDENT

U D CLERK

L D CLERK

Functions
 Overall administration of the organization
 Controlling personnel of the organization
 Accesses the vacancies of the organization
 Providing training for the workers
 Analyzing performance with co-ordination of other departments
 Promotion of employees and workers
 Demotion of employees and workers
 Providing reports to board as well as to public service commission
regarding vacancies of posts in the organization
 Fixing salaries and wages
 Providing incentives, bonus, etc. to worker and employees.
 Passing of the workers.

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RECRUITMENT

Earlier recruitment was made by this department and the source of

recruitment was employee recommendation. But in 1995, the appointment of
employees was handed over to public service commission. The role of
administrative department is to produce report regarding vacancies in the public
service commission via managing director.

TRAINING AND DEVELOPMENT

Generally the organization gives on the job training to the employees and
workers. Training should be given especially to salesman of showroom to attract
customers.
.

COMPENSATION, WAGES AND SALARY ADMINISTRATION

Compensation, wage and salary administration are done by the

administrative offers for appraising the performance of the employees and
workers in the organization.

PROMOTION

Promotion and demotion of workers is one of the functions of the

administration department. Promotion system in HANTEX is based on
seniority. Here the ability or performance of the employees is not considered,
but promotions are freeze due to the government policy

Employee welfare
HANTEX gives provident fund to the workers and they also contribute to
employee’s welfare fund.

Incentives
HANTEX provides sufficient salary and allowances to all employees. They
provide the medical allowance of Rs.40 per worker. In production centers
HANTEX contributes money to employee’s state insurance. Apart from this they

18
also provide a fixed percentage of total sales as commission to all the employees.
It motivates the employees to improve sales.
Employees
There are 500 employees in all HANTEX organizations.

LEAVES FACILITIES

The main leaves facilitates avail in HANTEX are casual leave, festival
leave, and maternity leave. They will get 20 half day leaves as casual leave and
33 and half day as earned leave. They will get full pay for those two leaves.
They can choose 10 full days instead of 20 half day leave.

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 CHAPTER 3

PRODUCTS

CHAPTER 3

20
 PRODUCTS
Product Profile
HANTEX is engaged in the production and marketing of all handloom
items. Its product line covers sarees, bed sheets, dothies, furnishing clothes,
shirtings, suiting’s, jubbahs, napkins and pillow covers. HANTEX’s products are
made up of cotton and polyester. But cotton item are produced in large quantity.

Product line

Cotton Items
 Double dothy
 Sarees
 Bed sheet
 Pillow cover
 Shirting’s
 Napkins
 Floor Mats
 Towel
 Thorthe

Polyester Items
 Shirting
 Suiting
 Matching set

Garments
 Shirting
 Suiting
 Jubbahs

Quality policy

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 Every organization has their own quality criteria for producing their
products as good one. Likewise HANTEX have also some quality measurements.
They issue a hand look to the primary societies regarding the quality
measurements. The measurements given in the book indicate the quality of the
products. It among this reed is the most important one. For example, double mund
has the following measurements.
Reed-8cm width 52cm length 2m
Revitalization
The major hurdle that HANTEX is facing is due to the accumulation of
stocks. Stocks worth Rs.40 crores are lying with HANTEX. The seasonal sales of
handloom fabrics and the rough competition from the power loom sector as well
as from private handloom dealers have contribute to the piling up of stock.
Stock liquidation scheme was originally envisaged to dispose-off the
accumulated stock by giving additional discounts. But the amount sanctioned so
far has been treated as loans bearing interest at the rate nearly 20%. The scheme
presently in existence should be modified and the amount already sanctioned in
future should be treated as grant, to service the real purpose of the scheme.
The Gov. has released an amount of Rs.2.80 crores under revitalization
scheme mainly to dispose of accumulated stock by giving additional discounts.

Raw Materialization
The major activity of HANTEX through is marketing of handloom fabrics;
the required raw material viz. yarn is supplied to member societies to enable them
to produce saleable varieties of fabrics. As an impetus to this objective of
HANTEX, assistance is provided in the form of loan for purchase and sale of
Hank yarn. During the 9th plan period an amount of Rs.1.95 crores was made
available to HANTEX. HANTEX, as mentioned earlier, had transacted business
worth around Rs.16 crores in yarn trading.

22
 CHAPTER 4

MARKETING

CHAPTER 4

23
 MARKETING

Marketing consists of the strategies and tactics used to identify, create and
maintain satisfying relationships with customers that results in the value for both
the customers and the marketer. Every organizations aims to promote its products
among the wholesalers through substantial sales orders.

Sales promotion

For increasing sales HANTEX improves the quality of products and to

obtain maximum supply orders HANTEX is planning to open new and improved
show room in cities and also trying to export by improve export by improving the
quality of products. HANTEX is conducting lucky draw during the festival season
for boosting sales.

Onam rebate sale

The 60% of the total sales in achieved in Onam rebate sale. For improving
sales in festival seasons HANTEX aimed at improving advertisement,
conduction, lucky draw and government credit. HANTEX offers credit facility to
government employees subjected to the maximum of Rs.3000/-. The amount is
collected from the salary of employees in five installments.

Exports

HANTEX sells its products not only inside the country but also outside of
the county too. The society exports its products mainly to United Kingdom and
Japan. But the export market of HANTEX is negligible it export only 15% of total
sales. Government gives export subsidy and incentives for handloom products.

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Competition

HANTEX faces competition mainly from;

 Hanveen
 Co-optex
 Power loom

Market analysis

It is one of the important function of the marketing department is to collect

feedback from the outlet managers regional managers, depot managers. This may
be either by direct communication or through conference.

Advertisement

The average advertising expenditure is about 25 lacks. In the year 2003

HANTEX spend 35 lacks for advertising their products. HANTEX gives
advertisement through following means
 Press advertisement newspaper and magazines
 Television
 Display boards
 Radio

Exporting products
 Fabrics and made ups
 Bed sheets & cushion covers
 Beach set
 Kimono ( dressing gown)
 Table mats
 Table covers

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  Napkins
 Curtain & furnishings

Problems of marketing department

 High price
 Lack of marketing research
 Lack of effective advertisement
 Services
 Lack of managerial talent to the primary societies.

26
 CHAPTER 5

SWOT ANALYSIS

27
 CHAPTER 5
SWOT ANALYSIS

Strength

 HANTEX is well supported by state government.

 HANTEX ensures quality of product.
 It covers a wide area of distribution mainly the Kerala state.
 It is the market leader for handloom items.
 It has only few competitors in the market.
 Eco-friendly dyes and chemicals.
 Impeccable reputation for quality and brand recall.
 Durable products.
 Unique products
 Exclusive designs

Weakness

 Export of handloom product is less

 Managing difficulty leads to closing of outlets
 Its products are not according to new changes in taste of customer’s
attitude.
 The products are not according to the taste and preference of the
youth.
 Inadequacy in advancement of processing facility compared to the
other mills.
 High seasonality of business operations
 Decreasing profit margin

Opportunities

 Strict control in the use of plastic carry bags will certainly leads to
change in customer behavior towards the cotton bags. This gives an
opportunity to HANTEX for making eco-friendly cotton bags to
replace plastic carry bags.
 It is better to target other states in India.

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  It has to change production on the basis of changing customer
attitude for a profitable opportunity.
 There is a scope to open showrooms in metropolitan cities.
 Demand for traditional ethnic fabrics

Threats

 Competition from power loom sector, organized mill sector, co-

opex, HANVEEV, KITEX, etc.
 Non-advanced processing facility compared to mills and others.
 Price escalation of yarn, dyes, chemicals and other raw materials.
 Market of the product is ever changing; taste, customers, fashion,
etc. affect the product market
 Bleak future of subsidies
 Shift in consumer behavior
 Decline in number of export weavers
 Increase in the price of yarn, dyes and chemicals


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
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
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

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


CHAPTER 6
FINDINGS, SUGGESTIONS AND CONCLUSION







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

30
 CHAPTER 6

FINDINGS, SUGGESTIONS AND CONCLUSION

FINDINGS

 There is a good inter-personal relation among the employees.

 HANTEX has made a direct entry is the field of export with a view to earn
foreign exchange.
 The society has increased the salary of which is at par with government
salary.
 Different department have good co-ordination with each other
 The demand of the products of HANTEX increases during shopping
season like onam, vishu, Christmas etc.
 The rebates and special offers given by HANTEX attract people.
 Medical allowances and other allowances is given which increase the
employee satisfaction.

SUGGESTIONS

 Price of certain products of HANTEX must be reduced so that is affordable

to the lower class customer.
 There should be social commitment from the part of employees towards
the society.
 Advertisement should be increased so that it reaches people living every
corner of the country.
 Steps to be taken for the provision of training facilities so as to increase the
ability and skill of employees.
 Encourage the export of products by setting up marketing units in foreign
countries.
 Formulate new designs for the society as a whole.
 Steps should be taken to solve the problems in accounting system.
 More showrooms should be opened in rural as well as urban areas to attract
more people.
 Introduce modernization and technological innovations as and when
necessary.
 Provide necessary welfare activities in order to increase employee
satisfaction.
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 Promotion can be used as a reward and an inducement to better employee
performance.

CONCLUSION

 The handloom weaving is a significant industry that provides employment

to lakhs of people in the country. HANTEX is the apex co-operative
society of handloom weavers in Kerala having over 440 production centers
and 150 sales outlets with most modern infrastructure to produce
handcrafted fabrics, garments, furnishing, made-ups, sarees, traditional
wears, etc. strictly in tune and harmony with eco-friendly norms for
internal and export market. HANTEX produce its products with natural
fibers and hence eco-friendly. It is the apex organization of primary
handloom weavers co-operatives sponsored by the government of Kerala.
 HANTEX have mainly 3 departments namely, Marketing
department, Finance department and Administration department. The
products of HANTEX are of high price, so only the high income group of
people can afford to buy the HANTEX products. The sales of products are
more during festivals such as onam, vishu, and ‘X’mas. The sales
promotional activities of HANTEX are not effective. The company has
basically 3 departments which work to achieve the objectives of the firm.
The sales of HANTEX products are basically higher in Kerala.
 On the basis of financial statements we can make out that the firm is
running in loss. The liquidity position of the firm is not fair. HANTEX
have showrooms almost in all districts of Kerala. HANTEX is trying to
make innovations in weaving, printing, and designing of present textile by
the use of computer. The present share capital of the company is less as
compared to the time of formation of the country.

32