OBJECTIVES OF THE STUDY
1. To study about the organisation. 2. To study organisational structure of Mascot Industries. 3. To analyze and study the functioning of the various departments of the company. 4.
To understand the various functions.
5. Understanding the organizational work culture. 6. Findings the problems and limitations of the organization, if any, and giving appropriate suggestions to overcome the difficulties. 7.
To identify opportunities, threats, strengths, and weakness of the departments.
DATA COLLECTION
The data relevant for the study were taken from primary and secondary sources. PRIMARY
DATA:
This
data
was
obtained
by
interviewing
chief
executive , interviewing various Head of Departments etc. SECONDARY DATA: This data was collected from various secondary
sources like broachers of the company, reports of the company etc.
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CHAPTERISATION
This project report is mainly divided into seven chapters and each of them deals with the following. CHAPTER 1: INTRODUCTION
It deals with the objectives of the study, data collection etc. CHAPTER 2: INDUSTRY PROFILE
It deals with the details regarding the Textile Industry. CHAPTER 3: COMPANY PROFILE
It deals with the history, top management, major milestones, quality policy , etc. CHAPTER 4: DEPARTMENT PROFILE
It deals with the details such as Structuring, Functioning of various departments. CHAPTER 5: PORTER’S FIVE FORCES MODEL
It deals with the Porter’s five forces model model of the Industry.
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CHAPTER 6: SWOT ANALYSIS CHAPTER 7: FINDINGS, CONCLUSION & SUGGESTIONS
It deals with the findings, conclusion & suggestions made after the study
LIMITATIONS OF THE STUDY
A detail study was not possible within a short period because the Organisation is Large Scale Industry.
There can be bias of the opinion provided by the staffs.
The study was descriptive in nature. So analysis was not conducted and an in depth study was not done.
Also the research uses the techniques of science, but it is not an
science. So the results obtained are not much applicable in all situations.
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CHAPTER-2
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INDUSTRY PROFILE
INDUSTRY PROFILE TEXTILE INDUSTRY
Most of us know that in the new millennium, global manufacturing hub is shifted to Asian continent. China and India will be the major players for meeting the global needs. But in almost all the fronts, India is in the very distant second position. In the textiles we have better position in Home textiles and very distant second in Apparels. EVOLUTION OF TEXTILE MILL INDUSTRY
In early 18th century most of the population lived in small
rural
settlements and few people only lived in towns. Many people worked as producers of woolen and cotton cloth. They cleaned, combed, spun dyed and wove the raw materials into cloth and this work was done in their own houses. This type of production was termed as domestic or cottage industry. Work within the cottage industry was usually divided between the members of the family. The process of weaving was physically hard work and traditionally it was the men who were responsible for it. Generally at regular intervals each IMK ADOOR
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handloom weaver’s cottage was visited by a cloth merchant. He would bring the raw material and take away the finished cloth to sell at the cloth hall. As soon as the new wool arrived it was washed to clean out all the dirt and natural oil. After this it was dyed with colour and carded. This was the process of combing the wool between two parallel pads of the nails, until all the fibres were lying the same way, then the carded wool was taken by the spinner ,using a spinning wheel, the thread was wound into a bobbin. The spin yarn was then taken to the loom to be woven. In a weaver’s cottage the loom was often to be found in an upper floor were there are large windows worked by both hand and foot movements working of the loom were quite strenuous work, which is why it was traditionally the work of the men of the household. With the advantage of the industrial revolution the whole process of manufacturing yarn and the subsequent production of cloth underwent a dramatic change. Industrial revolution brought about the widespread replacement of manual labour of machines. Goods that had traditionally been made in the homes or in the small workshop began to be manufactured in the factories. Productivity and technical efficiency grew dramatically in part through the systematic and practical knowledge of the manufacturing process. The production of yarn too shifted from the households to the factories where large number of men and women were employed to produce yarn on a large scale. The process were automated and became more efficient. One process which underwent a drastic change was spinning or weaving mills. Now electricity is used which is faster than hand spinning. Another major invention was the power loom. The power loom was steam powered mechanically operated version of regular looms, an invention that combined threads to make cloth. In 1785 EDMUND CART WRIGHT patented the first power loom and set up a factory in DON CASTER , IMK ADOOR
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ENGLAND, to manufacture cloth. It improved up on by WILLIAM HORROCKY and. FRANCIS COBOT LOWELL was an American businessman and the founder of the world’s first textile mill. Together with inventor PAUL MOODY, Lowell created a move efficient power loom and spinning apparatus. All this accelerated the growth of mill industry with production capacities, and the labuorers employed in the industry rising to millions.
INDIAN TEXTILE INDUSTRY
The Indian Textile Industry has a great legacy which is perhaps unmatched in the history of India’s industrial development. India’s textile industry evolved and developed at a very early stage and its manufacturing technology was amongst the best India’s manually operated machines were among the best in the world and served as a model for production of the first textile machines in newly industrialized Britain and Germany. India’s textiles were sought after for its finest quality and design and attracted people from across the globe like Chinese, Malaysians, and Portuguese etc. Colonization put an end to India’s glorious textile legacy. By 1880 the domestic market had grown to be served solely by British manufacturers. One of the aspects freedom struggle led by Mahatma Gandhi was to weaken the British Textile Industry by weaving homespun clothes as he was convinced that textile sector would be a catalyst in advancement of I(ndian population. Post Independence , till 1980 , the Government of India put numerous restrictions to ensure mechanization, it did not occur ; labour intensive textile
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were produced which in effect led to increase in price and decrease in productivity. The textile policy of 1985 has added a new beginning in the history of Indian textile industry. It identified the main task of textile industry as increase in production of cloth of acceptable quality at reasonable price to meet the clothing requirements of the population. The 1985 policy, illustrated the government’s attempt to relax the regulatory burden of the composite mills sector by elimination of compartmentalization in the industry, lifting of restrictions on composite mill, loom capacity expansion and equalization of taxation among composite mills, power looms and independent processing units. The textile industry was de licensed as per the statement of Industrial Policy of 1991 and the textile Development and Regulation order of 1992. All the measures liberated from the shackles of regulation that were in place in the 1980s and were steps in ensuring that the different segments of the textile industry became competitive in the work of globalization. HANDLOOM TEXTILES IN KERALA
The centuries old history of handloom in Kerala starts from Thorth to high end furnishings. Major items manufactured here are Thorth , Mundu, Set Mundu for ladies , Sarees, lunges, Shirtings, Terry towel, bed sheets, jacquard fabric, cotton crepe, table linens, Bed linens, Kitchen textiles, Curtains, Pillow covers, Upholstery Fabric and other furnishing fabrics. Now North Malabar is the main centre of manufacturing of hand woven textiles in Kerala and other places like Balaramapuram has some production of Dhothies and Sarees. Manufacturers of Handloom fabrics in North started their export about 50 years back. In 2005 Government of India recognized Kannur as a city of Export Excellence for their contribution in the export of mainly Home Textiles. Export from Kannur has crossed Rs. 300 crores. IMK ADOOR
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Kerala has centuries old tradition in handloom and the epic centre is North Malabar. There was lot of evolutions that took place in this cottage industry over centuries. It is believed that Saliyas migrated in Malabar during the Dynasty of Kolathiry , Samoothiry, and Perumal from Tamil Nadu, Andhra Pradesh, Karnataka and even from Kutch provinces of Gujarat. These rulers had given all the privileges because of their weaving skill and they were provided housing in their community streets with Mandapum at the centre and bathing ghats for male and female for their exclusive use. Even today this street culture is seen in all these states. They had set up Kuzhithari (Pitloom) in every house, probably the cheapest cloth weaving machine in the world. They had developed technology of weaving by employing few wooden frame, poles pedels and strings. This was the throw shuttle pit looms. Poorani , a wooden frame used for warping about 15 meters length of warp. Nalli chakram (charka) used for warp and weft winding. About three inches long Vellila thandu Tharu used as left carrier in the wooden or horn made throw shuttle. Rice starch was used for sizing the warp yarn. In those days, saliya brides best qualification was the efficiency in the preparatory work of weaving, winding, warping and sizing. Preparatory work was totally managed by the women and weaving by men. Almost the same tradition with some exception is practiced today also. A census report of 1881 based on cast and trade recorded nearly a lakh in the clothing sector including tailors in a Malabar and half of them were belong to saliya community. saliya also played an important role in the communist movement of Malabar. Because of its closed society nature comrades could hold secret meetings during its difficult period of pre-independance and post-independence time.
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Europeans could not implement their policy of forcing Indians to use imported clothing from their countries and they succumbed to the pressure of non co-operative movement initiated by Mahathma Gandhi. Our handloom weavers played an important role for the success of the non Co-operative movement during freedom struggle. Simultaneously by taking the advantages of casteism in Hindus, European missionaries started converting dissatisfied Hindus to Christianity by promising shelters, training, job and social status. Missionary had chosen hand loom weaving as one of the job area. As part of their strategy, during the middle of 19th century Bassel Missionary started several handloom factories in Malabar. Germans had developed frame loom with flying shuttle and mill warping which made a revolutionary change in the field of handloom weaving. Along with saliyas, other communities like Christians and Muslims also entered in this weaving job. At the beginning of the 20th century, Sri Narayana Guru initiated the social reforms in all over Kerala and Thiyyas/other backward communities were also motivated in taking up the handloom weaving job. Throw shuttle pit loom slowly became out dated by the middle of 20 th century because of its limitations in weaving of heavy fabrics, low production and non versatility. Frame loom with flying shuttle could weave intricate designs and ceck patterns with comparatively high production. Thanks to te Germans for developing Frame shuttle loom which could mount Jacquard, terry motion, multy treadle and also strong enough to weave heavier fabrics like todays furnishing and table linanens. COM trust of Calicut(Old Bassel Missionary) is the est evidence of this evolution and revolution. T the beginning of 20th century many private entrepreneurs started handloom factories in nort Malabar. Mr Samuel Aron should be remembered as the icon of modern handloom weaving in northern Malabar. His contribution to industry has immense in developing infrastructure including supporting facilities like IMK ADOOR
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spinning of yarn. Along with him somany other entrepreneurs stared their factories ans the last quarter of 20th century witnessed a mmile stone in the history of Kannur handloom textiles- Kannur Cotton Crepe. Kannur Cotton Crepe was ana innovation which was a pride for Kannur. During the same period when the industry in the peak time, trade disputes between private management and the trade union affected the total industry. As a result many factories started closing down. Due to the stiff competition from the neighboring states and higher input cost in Kannur, Handloom products for the domestic market became costly and non marketable. Further, clothing industry also had a big change during the second half of the 20th century. There were a lot of innovations in the manmade fiber, which changed the cotton clothing industry to blended clothing. Blended and manmade clothing are more durable and easy caring. So domestic market of hand woven clothing has started falling. During the middle of 20th century many weavers’ co-operative societies have been formed in north Malabar areas. By seeing the success of these societies other parts of Kerala also had seen the similar development. But the societies of north Malabar could only sustain the growth due to more favorable reasons. In the recent years, some societies are doing their own exports and many are supportive a manufactures for leading exports of Kannur. Many societies have their own outlets to sell their products in the local market. KANNUR HANDLOOMS
History says that weaving in Kannur started some150 years ago. During the period of Chirakkal Rajas, pit loom weaving was introduced for preparing the royal attire. Since before weaving,there are other activities like dyeing, winding, warping, joining etc, a group of workers needed for the whole process. Such groups settled in various areas in the districts and these settlements were
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called THERUS. The weaving communities in these Therus were called “Saliyas. A major turning point into the transformation of the activities into an organized weaving industry was with the arrival of the Christian Missionaries in 1883. The Bassal Mission was active in the entire North Malabar area and up to Mangalore. A small factory was set up by the mission in 1844, at Mangalore. The first Frame Loom was imported from Germany. Later as per the guidance of German technicians, “Maggams” were manufactured locally only throw shuttles were used in these looms. In 1851, the visit of weaving expert Mr. Heller from Germany to the Mangalore factory led to the introduction of “fly wheel filled shuttle. Even today, the same is being used extensively in Malabar. In 1844 at Calicut and in 1852 at Kannur, Bassal Mission started Frame Loom weaving factories. “Mundu” was the initial product from these factories and it was popularly known as ‘Misssion Mundu’. Later shirting checks and bed sheets were added innovation led multy treadle and jacquard designed fabric production. The success of these units motivated private entrepreneurs to establish new weaving sheds in the district. Handloom export activities from Kannur started in the early 1950s. infact Kannur has completed 60 years of export. The huge employment opportunity that this sector provided helped lacks of workers to earn their livelihood. It is only second to agriculture for employing the largest workforce. The one single product that made waves in the international market was the ‘CREPE’ fabric from Kannur in the early 70s. There has been no other single product that could gain such popularity and this trend continues strongly even after 40 years. In the year 2007 export value touched Rs. 350 cores. Eight out of the 52 leading handloom exporters of India are from this town. Top IMK ADOOR
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market buyers prefer Kannur as generations of owners have carried on with unflinching efforts to retain the “best quality” tag. The fact that most of the most of the top units are ISO certified shows that focus is on quality. Recently national channel confirmed that product from Kannur are decorating the WHITE HOUSE. The city started to known as “city of looms and lores”. When the union textile ministry prepared the list of leading 24 textile centers of the country for providing support to help in further export growth Kannur was included. It is the only town from Kerala among the 24 textile centers in the country. In 2002, the union commerce Ministry introduced the “Town of Export Excellence” recognition. This was to towns that the substantial contribution of towns that grew on its own strength to the national exports even without basic government infrastructure. Tirupur, Ludiana and Panipath were the three towns that got this approval in 2002. Later in 2003 Commerce Ministry decided to add 6 more towns. The effort of the exporters from Kannur get into the prestigious list proved successful in 2004, when the new EXIM policy was announced. Kannur became the only town in Kerala to be recognized as TOWN OF EXPORT EXCELLENCE for handloom exports. The remarkable journey continues…. Fighting against all odds, Kannur can proudly say that Kannur is among the short list of 9 towns in the whole country with such recognition. The march to further glory will continue, inspired by the bold and courageous generations of 1950s.
The pioneers who started export from this town 60 years ago showed
that Kannur will strive to bring more fame and when Kannur celebrates 60 years export they are trying to export the products of Kannur to at least 50 countries in the world.
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CHAPTER-3
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COMPANY PROFILE
COMPANY PROFILE HISTORY OF THE COMPANY
M/S Mascot Industries is a leading manufacturer and exporter of home textiles and garments. The handloom unit was started by the late C.Raman in 1940 to enter into the Indian Market. His son Mr. C. Shekharan, who is a visionary and a great entrepreneur, presence felt in European and American markets and has never looked back. From 1985, the elder son of Mr. Shekharan, Mr. C. Jayachandran has been part of the business and is currently the Managing Partner (Chief Executive). Partners of the company are Mr. C.Shekharan, Mrs. Jayanthi, Mr. C. Jayachandran and Mrs. Meena Jayachandran. Mascot Industries has completed 40 successful years in the field of handloom exports in India. For its performance in the export field, the company has been honoured by the Textile ministry for the last 23 successful years and is acknowledged as being among the top 50 handloom exporters from India. The present business of the company includes manufacture and export of home textiles which includes fabrics, made ups and garments. The unique feature of this organisation is its ability to deliver goods with high quality standards, on time. This aspect was largely responsible for creating satisfied customers with repeated orders. The name Mascot has been given by the founder late C.Raman, which means an object that, brings luck to the organisation. Mascot group has business
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in other areas like Hotel business(Mascot paradise hotel ) and a yarn spinning mill(Prime Cottons) MILESTONES
1. In 1968 company has got registered its name with registrar of companies 2. In 1970 company started its export. 3. In 198o, company has got ‘corporate membership’ of North Malabar Chamber of Commerce, kannur. 4.
In 1987 company has got the status of Ministry of Textiles, government of India.
5.
In December, 2001 Company has obtained internationally acclaimed and prestigious ISO9001:2000 QUALITY MANAGEMENT SYSTEM certificate from DET NORSKE VERIATAS (DNV) Netherlands.
recognised export house by
6. Mascot Industries have been approved under BSCI (Business Social Compliance Initiation) and ECO TEXT for environmental friendly product. 7. In 2004 company has got ‘NIRYAT SREE’ Award from commerce ministry, Government of India for doubling Export during 2002-2004. QUALITY POLICY OF THE COMPANY
Company has a quality policy which helps the organisation to ensure quality at every process and products . Quality policy of the company as follows:
At MASCOT INDUSTRIES, we are committed to the satisfaction of our customers by providing quality Home textiles and Garments at Competitive prices, meeting delivery Schedules, fulfilling customers’ requirements and focusing on continual improvement. We achieve our aim through total involvement of our IMK ADOOR
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dedicated employees & suppliers under an effective QUALITY MANAGEMENT SYSTEM
MAJOR MARKETS
Mascot Industries has markets in 16 countries majority of which is European Countries. Major markets are Austria, Belgium, Denmark, England, Finland, France, Germany, Holland, Japan, Luxemburg, Malaysia, Oman, Sweden, Switzerland, South Africa, USA.
MANAGEMENT SYSTEM
In addition to the ISO 9001: 2000 system, Mascot Industries have been approved under BSCI (Business Social Compliance Initiation ) and ECO TEXT for environmental friendly product. BSCI is given by the consortium of 230 importing companies for a company which has good employee compliance system. Mascot is doing everything possible to ensure employee satisfaction. Mascot does not create any environmental problems. It has a very good waste disposal system. These systems help in improving market acceptability especially with new customers. INFRASTRUCTURE
With its own centralized dying units, in house warping and winding facilities, computerised design units and stitching facility, the company always meets severe quality Standards and product conformances. There are two manufacturing units, one at Azhikode and another at Kulappuram, 35 km away from Kannur. There are 116 ordinary looms and 44 Jacquard looms . The company is equipped with computerised design centre where it could translate any design into production with least lead times. A stitching unit equipped with high speed heavy duty sewing machines including computerised embroidery machines, ensures fast and efficient IMK ADOOR
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manufacture of made ups and garments meeting international quality requirements. The company has established a well equipped chemical factory for testing colour fastness and shrinkage properties. Recently the company has added Polyster Fibre Opening machine, Vacuum packer, needle detector and latest computer configuration as part of the office automation to compete with fast growing industrial scenario. The company can produce upto 50000 meters of fabrics per month and it has capacity to convert 70% of the fabric into various home textiles. The company had subsidiaries at Thiruvananthapuram and Quilon. Both these subsidiaries have closed down because of heavy transportation cost an lack of employees. Now is planning to start a new plant in the KINFRA TEXTILES PARK at Nadukani near Taliparamba. Company has already acquired lnad and is expected to start production within two years. HUMAN RESOURCES
The company has got a total strength of 180 employees (109 at Azhikode and 71 at Kulappuram) and there are about 30 supportive manufacturers. Supportive manufacturers are those small scale manufacturers who assist the company to produce handlooms when the company has got orders to produce more than its capacity. The company takes care different things like occupational safety, health organization, fire prevention and protection, working premises , lighting, noise, ventilation etc. The company sees to that right person in the right place. They delegate chance for development of employees. They also give importance to qualification and training of employees . Each employee is paid compensation in accordance with the services. A standard is applied for every employees. Complete records are maintained for staff and workers. The company keeps two way communication with all employees
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ORGANOGRAM
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SENIOR PARTNER
CHIEF EXECUTIVE MANAGER ADMINISTRATI ON
MANAGER DYEING &WEAVING (KUL)
ADMINISTRA TIVE OFFICER
HR OFFICER
MANAGER PPC
Weaving supervisor
Dyeing supervisor
ACCOUNTS OFFICER
PURCHASE ASSISTANT S
ACCOUNTS ASSISTANT S
CASHIER
MNAGEMENT REPRESENTAT IVE
Supervisor Production I
CUSTOMER CARE OFFICER
MANAGER EXPORT&MAR KETING
Supervisor QA
Asst. Stitching supervisor
Export assistants
Lab asst. kulappura m
Finl inspcn
Supervisor Production II
Asst. Supervisor Stores&st ock Weaving asst. (azhi)
Receiving fabrics inspection fabrics Made ups inspection
Supervisor Production III
Asst. Supervisor sample Dyeing asst.(azhi)
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CHAPTER-4
DEPARTMENTAL PROFILE
ADMINISTRATION DEPARTMENT
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General administration of the company is done by administration department. Both accounting and HR department come under the purview of administration department in Mascot Industries. FUNCTIONS OF ADMINISTRATION DEPARTMENT •
Establish
and
document
specifications
for
raw
materials
and
accessories •
Assess the availability of raw materials and accessories as per the requirements
•
Issue the raw materials to production department as per the production order
•
Intimate corrective actions in purchase
•
Responsible for issue raw materials, stock update and material reconciliation for yarn, dye and chemicals
•
Purchase of raw materials through sales orders
•
Find out new suppliers for raw materials
•
Maintain inspection status of raw materials and accessories in the store
•
Maintaining general administration of the organisation
•
Liaise with Employee State Insurance and Provident Fund officer and other government agencies
•
Maintain all the related record of PF and ESI
•
Assess the manpower requirement in co-ordination with HOD/CE
•
Maintain proper data base of all employees
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ACCOUNTING DEPARTMENT
The ambitious plans of a business would remain idle if adequate money is not available. In early times, labour intensive methods of production prevailed in most of the industries. But new due to the fast development in science and technology, the labour intensive method of production is replaced by capital intensive method of production. At Mascot Industries major investment decisions are taken by the Chief executive and the main function of accounting department is to record the daily transactions of the business and maintain records for all transactions. FUNCTIONS OF ACCOUNTING DEPARTMENT •
Record daily business transactions
•
Maintains documents for all business transactions
•
Prepare pay roll of employees
•
Payment of wages
•
•
Inform the CE about the financial position and status of the firm
Purchase and valuation of inventories
SIGNIFICANT ACCOUNTING POLICIES •
The accounts are prepared on historical cost convention. All the accounting not specifically referred to otherwise are consistent and in consonance with Generally Accepted Accounting Principles.
•
The inventory at the end of the year will be valued at cost or market price whichever is less on FIFO method
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ACCOUNTING PROCEDURE Mascot Industries prepare four types of journal. They are as follows; •
Cash Payment Book (CPB)
•
Bank Payment Book (BPB)
•
Cash Receipt Book (CRB)
•
Bank Receipt Book (BRB)
At the end of every month the accounting department checks all the flow of money i.e., to and from various departments of the company. At the end of every financial year, profit and loss account and balance sheet is prepared from which the financial position of the company is noticed. SOURCES OF FUND There are internal and external sources of funds. The main internal sources of funds are income generated from sales and reserve. The major external sources are term loans from bank and other NBFCs. The initial capital was invested by the partners of the company. HUMAN RESOURCE DEPARTMENT
Human Resources is an inevitable part of every organisation. Managing human resource is a very difficult task in these modern times. In the case of textile exporting company human resources management is a very important task because foreign customers are always looking the way in which company deals with its employees. Mascot Industries has got Business Social Compliance Initiation for providing better employment facilities and ensuring zero child labour. FUNCTIONS OF HUMAN RESOURCE DEPARTMENT IMK ADOOR
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•
Human resource planning.
•
Recruitment and Selection.
•
Induction.
•
Training and development.
•
Performance appraisal and Promotion.
•
Welfare measures.
•
Establish health and safety programs.
•
Grievance handling mechanism
HUMAN RESOURCE PROCESS Following are the company’s HR process. •
Only persons having required experience and skills are employed by the organisation.
•
An induction criterion for each position in the organization is prepared containing position, qualification, experience, skills required and training required as per appendix.
•
Wherever possible recruitment are done as per the
induction criteria
depending upon the availability of suitable personnel. •
Employees’ assessments are carried out for arriving the employee strength and weakness.
•
A gap analysis is conducted based on competency of the existing personnel against the desired competency required based on the induction criteria and appraisal record.
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•
Suitable training is imparted wherever required as per the gap analysis.
•
Training need of the supervisors and HODs are identified by the CE.
•
Training need of the operatives is identified by the HODs.
•
After imparting training, evaluation is conducted to assess the effectiveness of the training.
•
If needed, retraining is imparted.
•
Appropriate
documents
are
maintained
employee
wise
about
educational qualification, experience and training imparted.
DEPARTMENT HIERARCHY
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the
CHIEF EXECUTIVE MANAGER PURCHASE AND ADMINISTRATION
ACCOUNTS OFFICER
HR OFFICER
ADMINISTRATIVE OFFICER
PURCHASE ASSISTANT
CASHIER ACCOUNTS ASSISTANT
PRODUCTION PLANNING AND CONTROL DEPARTMENT
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Among all the functional areas of management production is considered to be very crucial in any organization. “Production is a process by which raw materials and other inputs are converted into more useful outputs. Production management involves application of planning, organising, directing and controlling to the production process. FUNCTIONS OF PPC DEPARTMENT
Major functions of PPC department are; •
Planning the production activities
•
Assess ad allocate facilities for the production
•
Prepare and monitor planning activities
•
Monitoring the supply of fabrics and made ups from suppliers
•
Control the production activities
•
Develop suppliers for production
•
Intimate corrective actions in production functions
•
Review the contracts with Chief Executive and arrange production scheduling
•
Authorize to release product for dispatch
•
Co-ordinate sample development
•
Controlling the stitching activities
•
Fixing wages for made ups
•
Liaise with suppliers regarding the production of made ups/ garments
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•
Interact and give required instructions to the supervisors/asst. Supervisors regarding production/dispatch
•
Monitor and arrange transportation of raw materials to company
SAMPLE DEVELOPMENT PROCESS
Developing sample according to the order of buyer is an important function of PPC department. The purpose is to validate, develop verify and control the changes in sample. Samples are developed with the help of designs given by designers of the company including foreign designers. CONTRACT REVIEW PROCESS
The purpose is to determine the requirement of the consumers, review of requirement of the consumers, review of requirements of effective customer communication and to ensure complete customer satisfaction. PRODUCTION PROCESS YARN BOILING
Yarn boiling is the first step involved in the production process of fabric. Yarn is the main raw material used for the production of textile item. Company purchases these yarns from suppliers in Tamil Nadu. Boiling is doing to get dried yarn without moistures. For boiling the yarn company uses chemicals along with water. BLEACHING Bleaching the yarn is next process in textile manufacturing. Boiled yarn bleaches thoroughly before they are given for dyeing. It is the process of whitening the yarn. Bleaching is usually done in bleaching tanks. Before bleaching the yarn these tanks should wash thoroughly with fresh water and then prepare the bleaching tank by pouring water and required quantity of hydrogen peroxide liquor and stabilizer soda ash and caustic soda. IMK ADOOR
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PACKING STITCHING
DYEING Dyeing is the process of colouring the yarn according to the requirement of customers. There are mainly two types of dyes are using for this purpose, ordinary dyes and reactive dyes. Ordinary dyes take more time to get the required colour. Reactive dyes give immediate results at the time of dyeing itself. WARP WINDING Warp winding is the operation of winding the warp yarn into a beam in suitable arrangement for using as the warp in the loom. WEFT WINDING Weft winding refers to winding or reeling of weft yarns. Weft are threads that are woven under and over the threads that are held on a loom- a frame or machine for weaving fabric. WARPING Unlike table and floor looms, the warp weighted loom does not have treadleoperated movable sheds and heddles. It is operated with a fixed shed and three shed sticks with hand-tied string heddles. A weaver weaves from the bottom to top, rolling the finished fabric around the top beam as he goes. JOINING It is the process of joining the threads. WEAVING Weaving is done by intersecting the longitudinal threads, the warp, i.e. that which is thrown across, with the transverse threads, the weft that which is woven. INSPECTION After weaving, the inspection of cloth starts. If there is any defect that is found and rectified in this stage. STITCHING
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After the inspections of cloth these cloths are transferred to the stitching wing were cloths are cut and stitch according to the order of customers. PACKING After stitching the cloth products are packed for exporting.
DEPARTMENT HIERARCHY
CHIEF EXECUTIVE
MANAGER PPC
SUPERVISOR
SUPERVISOR
SUPERVISOR
Production I
Production II
Production III
Asst. SUPERVISOR
Asst. SUPERVISOR
SAMPLE
STORES& STOCK
DYEING Asst.
Asst. SUPERVISOR STITCHING
WEAVING asst.
MANAGER PPC He is responsible for major policy decisions regarding production. SUPERVISOR I He is responsible for developing new samples and designs. SUPERVISOR II He is mainly responsible for maintaining the stock records for the fabrics and made ups. He is also responsible for planning and controlling production activities of the organisation. SUPERVISOR III IMK ADOOR
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He is responsible for controlling the stitching and allied activities.
DYEING ANDWEAVING DEPARTMENT Weaving and dyeing is an important part of the production of textiles. Mascot industries have separate ‘dye house’ and ‘weaving house’ at Kulappuram. FUNCTIONS OF DYEING AND WEAVING DEPARTMENT Following are the major functions of the department •
After getting information from the merchandising team, this department selects the dye and passes it on to the supervisors
•
Checks the quality of dye
•
Inspection of raw materials and accessories
•
Production monitoring and sample monitoring
•
Ensure quality of finished goods.
DEPARTMENT HIERARCHY CHIEF EXECUTIVE
MANAGER DYEING&WEAVING
DYEING SUPERVISOR
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MANAGER DYEING AND WEAVING He is in charge of company’s Kulapuram unit and responsible for policy decisions regarding the department. DYEING SUPERVISOR He is responsible for planning the production in dyeing department. WEAVING SUPERVISOR He is responsible for planning the production in weaving department.
EXPORT AND MARKETING DEPARTMENT The major business of Mascot industries is export of home textiles, made ups and fabrics. Marketing department is an important department of every organisation. The major function of this department is to co- ordinate the sales activities of the firm and formulates marketing strategies. At mascot Industries export and marketing departments comes under one department called export department. FUNCTIONS OF EXPORT DEPARTMENT •
Takes care of export shipment.
•
Takes care of export licence, its renewal etc.
•
Ensure merchandised shipment is as per the requirements of the customers.
•
Ensure shipments are in right time and delay is avoided.
•
Ensure pre and post shipment document are accurate.
•
Finding new potential buyers.
•
Pitch the product.
•
Expanding the market.
•
Looks for LC (letter of credit) buyers.
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•
Marketing the brand, quality control etc.
•
Deciding about the pricing policy and terms of export.
•
Preparation of customer record cards.
•
Scrutiny and recording of reports.
•
Apply for government enhancing regarding exports.
•
Responsible for advertisement and sales promotion programmes.
•
Co-ordinate activities concerned with external agencies.
•
Ensure quality assurance functions are properly implemented as per the plan.
•
•
•
•
Communicate the customer requirements throughout the organisation. Liaise with external agencies in matters related to Quality Assurance Programmes. Developing marketing strategies of the firm. Send the documents related to the export such as Bill of Lading, to importer’s bank as per the requirements of buyer.
•
Apply for Certificate of Origin which is to be sent to the buyer.
•
Take insurance for the products to be exported if buyer specified so.
•
Make contacts with the foreign designers.
•
Continuous follow up until the product reaches in the hands of buyer.
•
Participate in the international
textiles fares conducted in different
countries. MARKETING STRATEGIES
The marketing strategy which is followed is niche marketing. Under this method a particular group of customers is concentrated and given special importance. The marketing programme is much focused. These markets are chosen looking into the viability and affordability. IMK ADOOR
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SALES PROMOTION
Sustaining current markets and entering new market is a very challenging task of export and marketing department. New design trends, colour themes and styles that are acceptable to overseas customers have to be developed and presented to attract orders. To help the company in latest design creations, blending the new colour themes Company has foreign designers. Foreign designers are those people who will study and analyse the changing trends in the tastes of the consumer regarding the textiles and develops designs according to the new tastes of the consumer and send these designs to the company. Company will receive designs from these foreign designers and pay them royalty if their design creates sales for the company. Mascot Industries have foreign designers in countries like Malaysia, Switzerland etc. However, speaking about sales promotion techniques there have been no concentrated efforts to advertise their products till now. The Company heavily depends on the direct selling approach. This is one of the best methods of this industry. The most important factor contributing to the success of the company’s product remains Word Of Mouth reference. Good reference comes from providing quality products and reliable service to new customers. Loyal and satisfied customers will often recommend the products to potential customers. It is on this foundation Mascot Industries built its reputation over years. For the last 5 years company is taking helps from agencies in selling their product. These agencies may be Indian or foreign agencies. These agencies help the company to get new buyers. These agencies charge a fixed percentage of commission on selling price. 7.5% is the international standard. Displaying the latest product range at International Textile and lifestyle fair helps the company to get the attention of new buyers. Existing buyers also get the opportunity to select and plan their future programmes based on company’s display at fair. COMPETITORS
Just like any other business textile business has also competition. Company has to compete with the products of various other companies. Products from India has greater demand in the foreign market hence usually company has to compete with Indian companies especially companies from kannur. The major competitors of the company are IMK ADOOR
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•
Ambadi exporters
•
Vasulal exporters
•
Cannanore textiles
•
Kairali handlooms
•
Hindustan textiles
•
Dhanalakshmi exporters
PRICING
Company adopts cost plus pricing system. Freight cost may or may not involve in the price of the product. It will depend upon the order of the buyer. Usually buyers are adopting anyone of the following four methods. •
Free On Board (FOB)
•
Cost, Insurance and Freight(CIF)
•
Cost and Freight(CF)
•
Cost and Insurance(CI)
Free On Board
Under this method company should bear all the expenses which may packaged products reaches the port. All incur until the expenses thereafter will be met by the buyer. (Fright charges). Here company includes the cost of sending products to the port in the price of the product. Cost Insurance and Freight
Under this method company will have to bear all the cost starting from the production till the product reaches to the customer including insurance. The company will charge all these costs in the price of the product. Cost and Freight
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Under this method company should bear all the costs until the product reaches in the hands of the customer except insurance charges. Insurance charges will be met by the customer. Cost and Insurance
Under this method company will have to bear cost of insurance and cost until boarding. All expenses thereafter will be met by the customer. NEGOTIABLE INSTRUMENTS USED BY THE COMPANY
Mascot Industries mainly uses two types of Negotiable instruments for receiving cash met. All payments are done between the exporter’s bank and importer’s bank. The major methods are: •
Letter of Credit
•
Document against payment or Cash against documents
Letter of Credit
A standard, commercial ‘Letter Of Credit’ is a document issued mostly by a financial institution, used primarily in trade finance, which may usually provides an irrevocable payment understanding. The ‘Letter of Credit’ can also be the source payment for transactions, meaning that redeeming the letter of credit will pay an exporter. ‘Letter of Credit’ is used primarily in international trade transactions of significant value, for deals between a supplier in one country and a customer in another country. Documents Against Payment or Cash Against Document
Cash against Payment is a type of transactions in which the title for the title for purchased goods is released to the buyer after the total sales price is paid using cash. Often, a commission house or a similar financial institution upon verification of the cash payment handles the actual transfer of title. Usage of the ‘Cash against Document’ method is commonly employed with transactions that involve the purchase of exports. IMPORTANT DOCUMENTS REGARDING EXPORTS Bill of Lading
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A ‘Bill of Lading’ is a document issued by a carrier to shipper, acknowledging that specified goods have been received on boards as cargo for conveyance to a named place for delivery to the consignee who is usually identified. Certificate of Origin
with Usually buyers will request to enclose Certificate of Origin along other documents. It is a certificate issued by Textile department which specifies the products are produced from India. This document is very useful in order to avoid double taxation. EXIM CODE
Export import Code is a code which is issued by the Director General of Foreign Trade. This code is useful in customs clearance. Customs can collect details regarding the exporter by using this code.
DEPARTMENT HIERARCHY
CHIEF EXECUTIVE
EXPORT MANAGER
EXPORT ASSISTANT-I
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EXPORT MANAGER
Export manager is one who is responsible for the major functions related to the export of goods to the buyer. He will be assisted by to export assistants. EXPORT ASSISTANT-I (Documentation)
He is responsible for preparing and sending all the documents regarding exports. EXPORT ASSISTANT- II
He is responsible for activities such as communicating with agencies, buyers etc. CURRENT EXPORT PERFORMANCE OF THE COMPANY
(Sales in years ) (In Rs.) Country
2006-2007
2007-2008
2008-2009
Australia
250,00,000
3,13,00,000
3,25,00,000
Switzerland
58,00,000
62,00,000
1,25,00,000
Germany
57,00,000
68,00,000
1,33,00,000
UK
20,00,000
57,00,000
70,00,000
Japan
47,00,000
54,00,000
35,00,000
Denmark
NA
17,00,000
40,15,000
Malaysia
24,00,000
27,10,000
20,15,000
Luxemburg
14,30,000
19,85,000
32,20,000
France
53,00,000
76,00,000
80,00,000
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CUSTOMER CARE DEPARTMENT Customer satisfaction is an important aim of every business organisation. Without the support of good customer base a business cannot survive for long time. Mascot is engaged in a kind of business where goods are produced in accordance with the order and design of customers. In order to protect the interest of customers Mascot Industries has set up a customer care department with a customer care officer. FUNCTIONS OF CUSTOMER CARE DEPARTMENT •
•
Co-ordinate with sample/shipments Co-ordinate with requirements
customer HOD
in
for
information
communicating
and
flow
regarding
meeting
customer
•
Co-ordinate with CE in updating customer cares
•
To ensure proper information of customer’s needs to various departments
•
To strictly give conformation of dispatch date for both samples and orders
•
To participate in production monitoring, sample monitoring, to ensure that confirmed dispatch date are being properly adhered
•
To attend phone calls of buyers/customers
•
To reply to mails from buyer/customer
•
Co-ordinate activities concerned with external agencies
•
Ensure Quality Assurance functions are properly implemented as per the plan
•
Communicate the customer requirement throughout the organisation
•
Negotiate with external agencies in matter with quality maintenance
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MEASUREMENT OF SATISFACTION LEVEL OF CUSTOMER
Customer satisfaction is being one of the prime concerns of the company. The satisfaction level was measured in the following ways. •
•
Company has developed a customer satisfaction feedback form and has forwarded the same to customer. In the absence of receipt of customer feedback , company analyses the volume of business done by the same customer.
•
Number of repeat orders given by the customer.
•
Number of claims arrived at of customer compliance.
•
Customer’s response to the company’s willingness to settle the customer complaints.
•
Corrective action proposed on the company to eliminate the recurrence of such complaint.
CUSTOMER SATISFACTION INDEX •
•
•
Customer feedback form from the preceding six months were compared with the current feedback and any increase in rating as considered as enhanced customer satisfaction . If the volume of business over a period is increasing under normal business environment from the same customer, then the customer satisfaction is considered to be improving. Repeat orders from the customer are considered as an enhancement customer satisfaction.
CUSTOMER COMPLAINTS REDRESSEL
Company is redressing the complaints from customers in a very significant manner. Following are the steps for rectifying customer complaints •
After receiving complaints from customers, customer care officer conduct preliminary investigation of the complaints given by the customer.
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•
•
•
•
Customer care officer find out the department concerned for the complaint. Then CCO will analyse the complaint with department heads Quality Assurance Officer and find out the causes. After finding out the root causes of the complaints, remedial measures will be taken. After resolving the problem customer care officer will inform the Chief Executive about the complaints and measures taken to rectify those complaints.
DEPARTMENT HIERARCHY
Chief Executive
Customer Care Officer
Customer Care Assistant
CUSTOMER CARE OFFICER He is responsible for dealing with customers regarding the complaints. IMK ADOOR
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CUSTOMER CARE ASSISTANT He is responsible for communicating about the complaints given by customers within the organisation.
CHAPTER-5
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COMPETITION ANALYSIS
PORTER’S FIVE FORCES MODEL The model of pure competition implies that risk-adjusted rates of return should be constant across firms and industries. However, numerous economic studies have affirmed that different industries can sustain different levels of profitability; part of this difference is explained by industry structure. Michael Porter provided a framework that models an industry as being influenced by five forces. The strategic business manager seeking to develop an edge over rival firms can use this model to better understand the industry context in which the firm operates. IMK ADOOR
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I. RIVALRY In the traditional economic model, competition among rival firms drives profits to zero. But competition is not perfect and firms are not unsophisticated passive price takers. Rather, firms strive for a competitive advantage over their rivals. The intensity of rivalry among firms varies across industries, and strategic analysts are interested in these differences.
II. THREAT OF SUBSTITUTES In Porter's model, substitute products refer to products in other industries. To the economist, a threat of substitutes exists when a product's demand is affected by the price change of a substitute product. A product's price elasticity is affected by substitute products - as more substitutes become available, the demand becomes more elastic since customers have more
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alternatives. A close substitute product constrains the ability of firms in an industry to raise prices. III. BARGAINING POWER OF BUYER The power of buyers is the impact that customers have on a producing industry. In general, when buyer power is strong, the relationship to the producing industry is near to what an economist terms a monopsony - a market in which there are many suppliers and one buyer. Under such market conditions, the buyer sets the price. In reality few pure monopsonies exist, but frequently there is some asymmetry between a producing industry and buyers. IV. BARGAINING POWER OF SUPPLIERS A producing industry requires raw materials - labour, components, and other supplies. This requirement leads to buyer-supplier relationships between the industry and the firms that provide it the raw materials used to create products. Suppliers, if powerful, can exert an influence on the producing industry, such as selling raw materials at a high price to capture some of the industry's profits. V. THREAT OF NEW ENTRANTS
It is not only incumbent rivals that pose a threat to firms in an industry; the possibility that new firms may enter the industry also affects competition. In theory, any firm should be able to enter and exit a market, and if free entry and exit exists, then profits always should be nominal. In reality, however, industries possess characteristics that protect the high profit levels of firms in the market and inhibit additional rivals from entering the market. PORTER’S FIVE FORCES MODEL IN TEXTILE INDUSTRY
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I .RIVALRY AMONG CURRENT COMPETITORS Textile exporters have to face competition both from Indian and foreign companies. In textile industry rivalry among current competitors are very high. In textile industry two kind of competition have to be faced by the company, one from internal companies and the other from external companies. Mascot industries have to compete with companies from other state who are producing goods of similar look. Competition from foreign companies is less compared to other industry because Indian textiles have greater demand in foreign countries. Foreign company’s products are marketed with their label so problem of similarity in product does not exist. In short there is very high rivalry among current competitors in textile industry. II. THREAT OF SUBSTITUTES There are no close substitutes for textiles. Mascot Industries are mainly producing handloom garments. Mascot has to face threat from power loom garments. In earlier period (until 31-dec-2004) there was high demand for handloom products. This is mainly because importers are getting duty benefits from their country in the case of handloom products compared to power loom products. From 1-01-2005 importing countries have taken away this duty benefits. After that foreign buyers are not specifying handlooms. Only what they want is goods of good quality at affordable price within time. So Mascot has to face threat from power loom companies who are producing goods of good quality. III. BARGAINING POWER OF SUPPLIERS Mascot Industries have a lot of suppliers for yarn, dyes and chemicals. Mascot is purchasing yarn mainly from companies in Tamil Nadu. They are purchasing dyes and chemicals from companies in Gujarat. In the case of textile IMK ADOOR
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industries the suppliers of raw materials have greater bargaining power. These suppliers will lobby together and increase the price of raw materials during seasons. This makes a lot of problem in the industry. So collective bargaining power of suppliers is very high in the case of textile industry. In order to avoid this problem central government has started spinning mill under National Textiles Corporation exclusively for exporters in kannur. In the initial period they supplied raw materials to exporters in kannur, after that they stopped supplying raw materials to exporters in kannur and they started supplying raw materials to companies from other states which they are continuing till now. In short in textile industry there is high bargaining power for suppliers. IV. BARGAINING POWER OF BUYER As in the case of suppliers buyers have also very high bargaining power in this textile industry. What is happening in textile industry is that buyers are getting various options. He can choose from different options. Buyers are usually attending almost all Textile fairs.so they gets options from different companies to purchase goods. It makes a tendency among him to bargain for lesser price.
V .THREAT FROM NEW ENTRANTS
Threat from new entrants is very high in the case of textile exporting. Almost all supportive manufacturers are trying to get foreign orders. Once they get foreign orders they have entered into the industry. The survival in the industry will depend upon timely delivery of quality products at affordable cost. In the mid 90s co-operative textile manufacturers are entered in the exporting market with the help of government. But they failed to provide goods at good quality within time and their orders have delayed and now they are out from exporting market. But still there is threat from new entrants. IMK ADOOR
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CHAPTER-6
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SWOT ANALYSIS
SWOT ANALYSIS OF MASCOT INDUSTRIES STRENGTHS
A firm's strengths are its resources and capabilities that can be used as a basis for developing a competitive advantage. Following are the strengths of Mascot Industries. •
Legacy of 70 years in textile manufacturing
•
Foreign designers
•
High reputation in foreign countries
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•
ISO Certification
•
BSCI approval
•
Combination of traditional weaving and modern technology
•
Computerized sampling development and computerized embroidery machines
•
Availability of skilled manpower
•
Company has a cotton mill which provides yarn to the company
•
Recognized export house of government of India
WEAKNESSES
Following points can be considered as weaknesses. •
Location of the company is in a very rural area in kannur which leads to high transportation cost
•
Lower concentration on power loom
•
Company is not using modern technology properly still they are depending traditional machineries which leads to lower productivity
•
Lack of skilled manpower
•
Highly depended on cotton
•
Highly concentrated on export marketing, no domestic marketing
OPPURTUNITIES
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The external environmental analysis may reveal certain new opportunities for profit and growth. Following are the opportunities available for Mascot industries. •
Growth rate of domestic textile industry is 6-8 % per annum.
•
Large, potential domestic and international market
•
Product development and diversification to cater global needs
•
Elimination of quota restriction lads to greater market development
•
Market is gradually shifting towards branded readymade garment and there is greater opportunity if the garments are branded
•
Increased disposable income and purchasing power of Indian customers open a new domestic market development
•
Emerging retail industry and malls provide huge opportunities for the apparel, handicraft and other segments of the industry
•
Proposed ‘Azhikal Port’ is a great opportunity for the company to increase its export with minimum cost
•
Proposed power loom factory at Nadukani Kinfra Textile Centre gives high opportunity to play in the power loom sector
•
Declaration of Kannur as the ‘Town of Export Excellence’ gives more government assistance companies in Kannur.
THREATS
Changes in the external environmental also may present threats to the firm. Following are the threats. •
Competition from other developing countries, especially china.
•
Continuous quality improvement is need of the hour as there are different demand patterns all over the world.
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•
Elimination of quota system will lead to fluctuations in export demand.
•
Threat for traditional market for power loom and handloom products and forcing them for product diversification.
•
International labour and environmental laws
•
Geographical disadvantages.
•
To balance the demand and supply.
•
Continuous effort of supportive manufacturers to enter into export business.
•
Make balance between price and quality.
•
Similar nature products from other states of the country at lower cost.
•
Growing unionism among employees.
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CHAPTER-7
FINDINGS OF THE STUDY
FINDINGS IMK ADOOR
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1. One of the leading quality textile exporters in Kannur. 2. Company adopts both direct and indirect sales. 3. The company mainly produces products by using handlooms. 4. Company’s Kulappuram unit is running in loss due to unionism among employees. 5. Company is planning to start a power loom factory at Kinfra Textile Centre, Nadukani. 6. Company is using foreign designers to get designs according to the new trends in foreign countries. 7. Company has closed down their units at Quilon and Trivandrum. 8. No individual performance appraisal system.
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SUGGESTIONS
1. The company should increase the production to meet the demand of customers. 2. Company should increase the commission of agents to get more orders. 3. Company should participate in more textile fairs to get advantage. 4. Company should focus in power loom sector. 5. Company should start business in domestic market. 6. Company should concentrate more on the development of employees.
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CONCLUSION
The unique feature of this organisation is that they ultimately aim at the satisfaction of consumer needs. Its stress is always on business and their products. Their marketing techniques are directed towards the satisfaction consumers. They really take care of quality of their product and they deliver what they promise. A wrong choice of product or poor design of product may render thir system operations ineffective and non competitive. A careful evaluation must be done as it is a competitive field. They take care of their product selection and design, process selection and planning facilities, location etc. They also look after their quality assurance work and devise methods for design cost reduction and cost control. Customers are the central point of any business and the success of the business lies in the hands of customers and in the number of customers. Regular customer feedback is encouraged by the company to understand the views of their customers which enable them to assess and improve their performance. They understand the customers so well that their product fits them and sells by itself. By exhibiting latest products and designs at international fairs, they create new buyers by entering into new markets. The views and ideas of these fairs help them to design new products to satisfy the needs of people in various countries. The company now has their business in around 15 countries and they achieve their goals by meeting the customer needs. Their marketing activities start and end with customers. The management team of this organisation is IMK ADOOR
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designed to face any challenges and unforeseen circumstances that may come their way. The success of creating a winning corporation lies in the appreciation of the potential value of human capital and in the ability of the leaders of the company to nurture and mobilize such talents. The management of Mascot Industries put their entrepreneurial mind to create a livelihood for their customers while achieving their own goal also.
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Bibliography www.wikipedia.com www.mascotinds.com www.quickmba.com
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