224114992 organization-study-at-kitex

ORGANIZATIONAL STUDY ATKITEX
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AN ORGANIZATION STUDY
on
KITEX LIMITED, KIZHAKKAMBALAM.
Internship submitted in partial fulfillment of the requirements for the award
of the degree of

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MASTER OF BUSINESS ADMINISTRATION
of
CMR INSTITUTE OF MANAGEMENT STUDIES
(AUTONOMOUS)
affiliated to Bangalore University
by
R.RAJENDRAN
Register No:12201057
Under the guidance of
Ms.Vrinda .V.Nair Ms.Rinku.T.Titus
Associate professor. HR Executive
Department of Management Program KITEX LTD.
CMR Institute of Management Studies (Autonomous)
C.A. #2, 3rd
C cross, 6th
‘A’ Main, HRBR layout
2nd
Block, Kalyana Nagar
Bengaluru-560 0434
2012 – 2014
STUDENT’S DECLARATION
I hereby declare that this Internship titled “An Organization Study at Kitex Limited,
Kizhakkambalam” submitted by me to the Department of Management Program,
CMR Institute of Management Studies (Autonomous) affiliated to Bangalore
University in partial fulfillment of the requirements for the award of the degree of
Master of Business Administration, is a bonafide work carried by me under the

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guidance of Ms.Vrinda.V. Nair, Associate Professor, Department of Management
Program, CMR Institute of Management Studies (Autonomous) affiliated to Bangalore
University.
This has not been submitted earlier to any other University or Institution for the award
of any degree certificate or published any time before.
Place: R. RAJENDRAN
Date: Reg No :12201057
ACKNOWLEDGEMENT
I would like to take the opportunity to express my profound gratitude to all the people
who have helped me to successfully complete this organizational internship with their
sound advice and able guidance.

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I place my sincere thanks to Mr. K. C. Pillai, Manager (Administration and
Marketing), and Kitex Ltd for permitting me to do the organizational study in the
company. I would also like to thank my External guide Ms. Rinku.S.Titus, HR
Executive, Kitex Ltd who provided valuable information of the company that had
helped me to gain knowledge about the organization.
I express my sincere gratitude to my internal guide Ms. Vrinda.V.Nair, Associate
professor, Department of Management Program, CMR Institute of Management
Studies, Bangalore whose guidance and support throughout the organizational study
helped me to complete this report successfully.
Above all I would like to thank the Almighty for all the benevolence that He shower
on me and to have helped me to complete this work very successfully
R. Rajendran
EXECUTIVE SUMMARY
An organization is a social unit which is deliberately constructed and

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reconstructed to seek specific goals. An organization comes into existence when there
are a number of persons in communication and relationship to each other and are
willing to contribute towards a common endeavour. The evolution of organization
dates back to the early stages of human civilization when two or more persons began
to cooperate and combine together for fulfilling their basic needs of food, clothing,
shelter and protection of life. Thus, an organization is born when people combine their
efforts for some common purpose.
This organization study is carried out at Kitex Ltd, Kizhakkambalam, Aluva a textile
concern based in Kerala which is a flagship company of Anna Group of companies.
The organization study has been carried out to get an understanding of the structure
and functioning of the organization. The study helps to interact with the managers of
different departments and to observe the workers at their work place and identify the
market position of the organisation.
The study of the organization gives brief picture about how the organization could
maintain its resources effectively . The structure gives the information about the core
leadership, Main Division and various functional departments, duties and
responsibilities of executives of the organization .It also contains information about
the competitors of Kitex Ltd.. The report also deals with SWOT analysis of Company
and the management problems facing the company.
.

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TABLE OF CONTENTS
CHAPTER NO. CONTENTS PAGE NO.
ACKNOWLEDGEMENTS i
EXECUTIVE SUMMARY ii
TABLE OF CONTENTS iii
LIST OF TABLES iv
LIST OF GRAPHS/CHARTS/FIGURES v
1 INDUSTRYPROFILE 01-03
2 COMPANYPROFILE 04-15
3 ORGANIZATION STRUCTURE 16-18
4 FUNCTION OF DEPARTMENTS 19-58
5 SWOT ANALYSIS 59-60
6 SPECIAL TASK 61-62
7 FINDINGS, CONCLUSION AND SUGGESTIONS 63-65
Bibliography
Chapter 1
Textile Industry Profile
The Indian textile industry is one the largest and oldest sectors in the country and among the
most Important in the economy in terms of output, investment and employment. The sector
employs nearly 35million people and after agriculture, is the second‐highest employer in
the country. Its importance is underlined by the fact that it accounts for around 4% of

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Gross Domestic Product, 14% of industrial production, 9% of excise collections, 18% of emp
loyment in the industrial sector, and 16% of the country’s total exports earnings. With direct
linkages to the rural economy and the agriculture sector, it has been estimated that one of ever
y six households in the country depends on this sector, either directly or indirectly, for its live
lihood.A strong raw material production base, a vast pool of skilled and unskilled personnel,
cheap labour, good export potential and low import content are some of the salient
features of the Indian textile industry. This is a traditional, robust, well‐established industry, e
njoying considerable demand in the domestic as well as global markets.
History of textile industry
India has been well known for her textile goods since very ancient times. The traditional
textile industry of India was virtually decayed during the colonial regime. However, the
modern textile industry made its real beginning in Bombay, in 1850’s. The first cotton textile
mill of Bombay was established in 1854 by a Parsi cotton merchant then engaged in overseas
and internal trade. Indeed, the vast majority of the early mills were the handiwork of Parsi
merchants engaged in yarn and cloth trade at home and Chinese and African markets.
The first cotton mill in Ahmadabad, which was eventually to emerge as a rival centre to
Bombay, was established in 1861. The spread of the textile industry to Ahmadabad was
largely due to the Gujarati trading class. The cotton textile industry made rapid progress in
the second half of the nineteenth century and by the end of the century there were 178 cotton
textile mills; but during the year 1900 the cotton textile industry was in bad state due to the
great famine and a number of mills of Bombay and Ahmadabad were to be closed down for
long periods.
Current position of textile industry in India
Textile constitutes the single largest in India. The segment of the industry during the year
2011-2012 has been positive. The production of cotton declined from 156 lakh bales in 1999-
2000 to 140 lakh bales during 2000-2001. Production of man-made fibre increased from 835
million kilo grams in 2009-2010 to 904 million kilo grams during the year 2010-2011
registering a growth of 8.26 %. The production of spun yarn increased to 3160 million kilo
grams during 2010-2011 from 3046 million kilo grams during 1999-2000 registering a
growth of 2.91 %. The production of fabric registered a growth of 2.7 % during the year

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1999-2000. Production of handloom and power loom sector increased by 2 % and 2.7 %
respectively.The exports of textile garments registering a growth of 21%. Growth in the
textile industry in the year 2003-2004 was Rs. 1609 billion.
India’s Major Competitors in the World
To understand India’s position among other textile producing the industry contributes 9 % of
GDP and 35 % of foreign exchange earnings, India’s share in global exports is only 3 %
compared to china’s 13.75 %. In addition to China, other developing countries are emerging
as serious competitive threats to India. Looking at export shares,
Korea (6%), and Taiwan (5.5%) are ahead of India, while Turkey (2.9%) has already caught
up and others like Thailand (2.3%) and Indonesia (2%) are not much further behind.
The reasons for this development are the fact that India lags behind these countries in
investment levels, technology, quality and logistics.
Problems Faced by the Textile Industry in India
The cotton textile industry is reeling under manifold problems. The major problems are the
following
Sickness
Sickness is widespread in the cotton textile industry. After the engineering industry, the
cotton textile industry has the highest industry incidence of sickness. As many as 125 sick
units have been taken over by the Central Government. Sickness is caused by various reasons
like the problems mentioned below.
Obsolescence
The plant, machinery and technology employed by a number of units are obsolete. The need
today is to make the industry technologically up-to-date rather than expand capacity as such.
This need was foreseen quite some time back and schemes for modernization of textile
industry had been introduced. The soft loan scheme was introduced a few years back and

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some units were able to take advantage of the scheme and modernize their equipment.
However, the problem has not been fully tackled and it is of utmost importance that the whole
industry is-technologically updated.
Government Regulations
Government Regulations like the obligation to produced controlled cloth are against the
interests of the country. During the last two decades the excessive regulations exercised by
the government on the mill sector has promoted inefficiency in both production and
management. This has also resulted in a colossal waste of raw materials and productive
facilities. For example, the mills are not allowed to use filament yam in warp in order to
protect the interest of art silk and power loom sector which use this yarn to cater to the
affluent section of society.
Textile industry in Kerala
The first cotton textiles mill in Kerala was established in 1883 in Kallai near Kozhikode by P
S Santhappa Chettiyar and M Guptan Namboothiripad which was known as Malabar
Spinning and Weaving Mill. The commercial production was started in the year 1887.
Chapter2
Profile of Kitex Limited
Anna Group of Companies
The Anna group is one of the leading industrial groups in the state of Kerala employing more
than 12,500 personnel for the past 40 years. The group is engaged in the manufacture of
different products like garments, textiles, school bags, travel bags, aluminium utensils,

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branded spices and curry powders etc. The Anna range of vessels and utensils are highly
popular in the Middle East, USA, Africa and Australia.
The major divisions of Anna Group of companies are
Fig 2.1
Anna Aluminum Company
Anna Aluminum was the first started in 1968 at Kizhakkambalam as a small company of only
eight employees. Now it has grown into the single largest private sector employer in Kerala with
nearly 5000 employees. This is the flagship company of Anna group, engaged in the
manufacturing and marketing of vessels and utensils as per the ISI standards for the past three
decades. It is presently the only company having ISI certification for Vessels in Kerala. The
company manufactures vessels only using 99.5 % pure aluminum ingots. The brand Anna has
become a house hold name in Kerala due to its high standard of quality and workmanship.

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The company has more than 525 varieties of vessels and utensils marketed through more than
1200 dealer outlets in India. Its Chackson range of packaged products includes pressure cooker,
idly cooker etc. Chackson brand pressure cooker commenced production in 1993.
Product Range
• Pressure cooker
• Thermal cooker
• Multi steamer
• Idly cooker
• Milk cooker
• Puttu maker
• Kettle
SARAS SPICES
It is the condiment producing unit of Anna group. It is involved in the production and
exporting of curry powders, whole spices etc. For the past two decades. Since its inception in
the year 1976, Sara spices and curry powders are known for their high standard of quality and
hygiene and have won many awards. Sara spices include Cardamom, Ginger. Turmeric, Red
chilli and Coriander .Sara’s ready to eat products offer the convenience of any time food.
Sterilization technology used effectively kills the bacteria in the food at high temperature.
The varieties of products on offer are traditional Kerala meat, fish, vegetable curries etc.
Scoobeeday Bags
At the dawn of new millennium, the new generation was presented with an innovative school
bag from KITEX, the main offshoot of Anna group. Scoobee Day bags are compactly
designed with unique features that make it durable, colourful, comfortable and easy to carry.
The bag features anti strain shoulder paddings and acupressure buds specially designed to
minimize the strain on the back and shoulders. Different type of bags were produced by
Scoobee Day. They are school bags, college bags, ladies bags, travelling bags etc.

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Agna and Adonis Innerwear
Kitex has made its foray into the untapped lingerie segment with brand names Agna and
Adonis. Adonis is a brand of inner wear for men; and Agna is a brand of inner wear for
ladies. With Anna group’s promise of quality, both Adonis and Agna come competitively
priced and ensure complete value for money. Adonis is a range of refined vests and briefs;
and Agna is a range of bras and panties with seamless fit and finish. Both brands uses
specially processed fabric which feels smooth and silky even on the soft skin of newborns.
Kitex limited
Kitcx Ltd was established in 1975. Mr. M C Jacob is the founder of Kitex Ltd. Presently the
company is contiolled by Bobby Jacob. This company produces a wide range of cotton
fabrics, polyester blends, greige cloth and made ups like bed sheets and lungies. The most
important raw material yarns are bought from Tamil Nadu. Kitex fabrics are exported to many
parts of the world.
Product Gallery
Lungies
• Executive
• Medium super
• Medium
• Economy
Dhotis
• Smart line
• Smart line gold
• Ready-wear
• Samrat
Bed sheets

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• Sweet dreams 50
• Sweet dreams 60
• Sweet dreams double sheets
• Solitude double sheets
• DupiexV Solitude bed sheets + 2 pillow covers
• Sweet dreams DS + 2 pillowcovers
Ownership Pattern
Kitex Ltd was started in the year 1975. Kitcx Ltd is a private limited company with 3 directors.
Most of the shares were held by them and their relatives. It does not issue shares to the public
for the purpose raising of capital.
History and Growth
Kitex Ltd, a prominent company in the field of textile industry began its spectacular display
in 1975 at Kizhakkambalam, Aluva. This prestigious company, one of the vibrant divisions of
Anna-K-itex group of companies is a celebrity among the industrial giants in our country.
This weaving unit is engaged in the production of fabrics made of cotton and other blends,
greige cloth, bed sheets, dhotis, mull and lungies. They are marketed through a network of
over 2000 authorized dealers. Through the years, the company has carved a niche for itself in

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this highly competent industry with its tradition of internationally accepted projects.
The company was established to set up an efficient industrial estate to provide technical,
industrial, financial and marketing facilities to power loom owners and to create job
opportunities to the educated unemployed. About 400 power looms were established in the
premises under the banner of Kizakkambalam textiles limited, which has been later renamed
Kitex Limited.Kitex markets its products through a network of over 2000 authorized dealers,
Kitex fabrics arc now exported to many parts of the world.
Vital Statistics
Name : KITEX LTD.
Address : Kizhakkambalam, Ernakulam district.
Registered office : Kizhakkambalam
Nature of incorporation : Public limited company
Nature of business : Manufacturing of cotton textiles
Nature of products : Industrial and consumer products
Brand name : KITEX
Chairman and MD : Sri Bobby M Jacob
Directors : Sri Bobby M Jacob and Ms. Mini Bobby
Auditor : M/s.Varma&Varma.
Bank : Federal bank, SBI

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Annual turnover : 200 Crores
Employment potential : 1800 workers
Number of machines : 564 machines
Legal Framework of the Organisation
Legal frame work of the company means the rules and regulations which governs the company.
To be more precise it means the rules and regulations that each and every individual employees of
an organization abide to. Kitex Ltd has well-structured legal frame work which can be considered
to be the most important factor for the success of the organization.
A standing order has been issued to each and every member of the organization. This
standing order prescribes the manner in which every member should perform and details of
how an employee must behave in an organization. It also contains a detailed report on the
rights of each individual in the organization.
An employer cannot dismiss a particular employee in the organization without following
certain procedures. They must act within the legal frame work of the organization.
Vision
A world class manufacturing company focusing on all round business excellence through a
Total Quality Management (TQM) system with committed leadership, executive team work,
delighted customers, and satisfied employees in an environment friendly organization.

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Mission
They are committed to manufacture and deliver quality fabrics and processed fabrics as per
the customer specification, efficiently, in a professional and environment friendly manner, on
time and at the right cost with the most customer satisfaction to become a world class
organization through continuous improvement
Objectives
Objectives of Kitex Ltd are the following.
• Increase sales of value added item by 20 % from the existing level.
• Increase the production by 60 % from the level by adding essential machinery, manpower
and solving space constraints.
• Reduce rejection by 10 % from the prcsenl level.
• Reduce customer complaint by 10 %.
• Increase the product range by introducing new inner garments.
• Reduce the present project product rejecting by 50%.
Products and their categories
Lungies
• Executive: Superior quality lungies available in various designs and colors.
• Medium Super : Comfortable lungies which allows to drape. Available in various designs
and colour combinations.
• Medium: Experience freedom and coolness with Medium range of lungies; it is available

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in warm colors and in various designs.
• Economy: They are very smooth and is of comfortable material.
Dhothies
• Smartline: White single dhothy with streaks of either dark red or dark blue or dark green
lines, which can be worn equally at home and outdoors.
• Smartline Gold cream colour single dhothy with streaks of Gold Jerry lines for special
occasions
• Readywear Plain white single dhothy you’ll love to drape. The anywhere, anytime wear.
• Samrat Pure cotton white double dhothy with lines in 5 different colours to choose from
Bed sheets
• Sweet dreams 50
• Sweet dreams 60
• Sweet diearns double sheet
• Duo/sd 60 bed sheet + 2 pillow covers
• Solitude double sheet
• Sweet dreams king knight
• Duplex / solitude bedsheets + 2 pillow covers
• Soft dreams king size H 2 pillow covers
• Sweet dreams DS + 2 pillow covers
Mull
Mull is a dhoti for small children. Mostly they are selling in to local market.
Types of Mulls are
• Economy
• Medium
Scoobee Day products
• School Bags
• College bags
• Kinder garden bags
Trawclldav hags
Trolley bags

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• Travel bags
• Business bags
• Lap- top bags
• Back- pack bags
• Beauty case bags
Agna and Adonis Inner Wear
Kitcx has made its foray into the untapped lingerie segment with brand names
Adonis and Agna. Adonis is a brand of inner wear for men; and Agna is a brand of inner wear
for ladies.
Major Export Markets
✰ North America
✰ South America
✰ Western Europe
✰ Eastern Europe
✰ Eastern Asia
✰ South East Asia.
Technology
Kitex uses a combination of both traditional and modern technologies for the production of
their products. Some of the techniques used for the production process are:
(a) Warping
(b) Sizing
(c) Beam drawing
(d) Pirn binding
(e) Weaving
(f) Folding
(g) Recounting (h) Grading
Awards Won
Mr. M.C. Jacob the former Managing Director of Kitex Ltd has won several awards for his

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meritorious contribution to the field of business. Some of them are:
• He has won the “TRANS WORLD TRADE FARE” Gold medal in the year 1975.
• He has awarded the “UDYOG PATHRA” Award by the vice president of India Sri B
Jeiti in the year 1979.
• Memento was presented to Mr. Jacob in December 1992, for his valuable contribution to
the Evangelistic Convention held at Puthencruz.
• Considering his outstanding contribution as an industrialist Mr, Jacob was awarded
the Business Man Of Kerala 1999 award by the Kerala Chamber of Business.
• KRISTHU JAYANTHI Award for the year 2000 was conferred to Mr. Jacob during
82nd All Kerala Catholic Congress for his noteworthy contribution to the economy.
• The Emakulam Chamber of Commerce awarded the Joseph Chakola Memorial
• Vyavasaya Jyothi award to Mr. Jacob for the year 2000-2001.
• Sammanpathra of Govt. Of India, Ministry of Finance, Department of Revenue for
outstanding performance.
• Advertising industries media presented a memento ‘Kerala Adifcst 2007
Recently, in 2011, Kitex has been selected as the third best brand in Kerala by Dhanam
Business magazine & Rajagiri Business School.
In the market survey conducted in 2007 of consumable products named, “Top 20 Products” in
Kerala, Kitex got 11th rank with a score of 201.8736. The rank was decided on the basis of
the consumer’s acceptance or popularity.
ISO certification
Kitex got ISO 9001-2000 certification in February 2007. They are committed to manufacture and
deliver quality fabrics. KITEX Ltd is the leading manufacturer with ISO 9001-2000 in South
India of all varieties of Grcige Fabrics. They are committed to manufacture and deliver quality
fabrics and processed fabrics as per the customer specification efficiently in a professional and
environment friendly manner, on time and at the right cost with at most customer satisfaction to
become a world class organization through continuous improvement.
Future Plans and Programmes
Kitex Ltd is planning to increase their weaving capacity by adding shuttle loom. They are

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also planning to increase their exports of various products to many different countries abroad.
Diversifications of new products are now being added. As a part of expansion, Kitex Limited
garments unit is developing and there is also future plan to expand the capacity of Trawellday
Bag unit for improving the quality and for developing the production capacity.
Future visions
 To reach excellent quality standards in coming years.
 To keep in pace with modern technologies concept.
 To organize supply of materials at minimum cost to maximum excellent.
Competitors
The major competitors of Kitex in the textile segment are MCR and RAMRAJ. They account
for the major market share in the textile market.
RAMRAJ: Ramraj Cotton is India's largest manufacturer, supplier and exporter of cotton
dhoti, cotton shirt and inner wear for men, women, and kids. The company started in
Avinashi near Coimbatore with single, unwavering vision to deliver quality ethnic men's wear
to people in the southern states. The company has invested in top end machines and high end
infrastructure to match the growing demand for its varied products.Ramraj promotes its brand
through massive advertisements in regional channels using filmstars. It also has a strong
dealership network spread across TamilNadu and Kerala.
MCR: It is a Textile company based in Erode in Tamil Nadu.The brand ‘MCR’ has products such as
Kerala Sarees, Ready-to-wear Garments, Dhotis and Lungies. The brand is famous for innovative
products, traditional designs, colourful collections & comfortable fabrics. The dhoti range of brand
‘MCR’ comes in stain-free, wrinkle-free, perfumed and jari worked varieties. World renowned Kerala
Sarees with attractive designs and colours is another highlight of ‘MCR’. Rixo vests and briefs,
Roshini churidhar materials are some of the popular products of MCR.
Kitex also faces competition from other brands like Bombay Dyeing in the field of bed sheets
and Shirts and also from local brands like Jansons and Angel.

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CHAPTER-3
Organisational Structure

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Organisational structure refers to the levels of management and division of responsibilities
within a business, which could be presented in an organisational chart. An organizational
structure consists of activities such as task allocation, coordination and supervision, which are
directed towards the achievement of organizational aims. It can also be considered as the
viewing glass or perspective through which individuals see their organization and its
environment. are a variant of clustered departments. It can be structured in many different
ways, depending on their objectives. The structure of an organization will determine the
modes in which it operates and performs. It allows the expressed allocation of responsibilities
for different functions and processes to different entities such as the branch department work
group and individual.
Organizational structure affects organizational action in two big ways. First, it provides the
foundation on which standard operating procedures and routines rest. Second, it determines
which individuals get to participate in which decision-making processes, and thus to what
extent their views shape the organization’s actions.
Kitex Ltd follows the line or military organizational structure. Managing Director is at the top
level, other functional managers follow by him. The span of management in the organization
is narrow span. The main advantage of this type of control is that close supervision, clear
chain of command, and close control and fast communication between subordinates and
supervisors. The model of the organization design is mechanistic model. It has encouraged
teamwork and has helped to maintain good internal relationship. Unity of command is
maintained through the organization.An efficient management system plays a dominant role
in the success of all business units.It is this section that declares the levels of output, its
product in pattern, pricing technique, marketing style and even the mode of conduct to its
executives. The chairman and the managing director who are the representatives of the
shareholders take the important decisions of the group concerns. They perform strategic
planning and policy making functions of kitex ltd. General manager is responsible for the
smooth, efficient and productive functioning of the units from the production to the
marketing.
The middle level management comprises of production manager, marketing manager,
financial manager, personnel manager and purchase manager, and store manager and quality

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controller.
Average Qualification of employees
Top level:- Professionally qualified having sufficient industrial experience,
Middle level:- Graduation and above with experience in the relevant areas (both technical
and managerial).
Junior level/First line management:- Diploma/ Industrial training certification in the textile
industry and experience.
Different Departments
• Purchase Department
• Production Department
• Quality control Department
• Stores Department
• Personnel and Administration Department
• Finance Department
• Marketing Department

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Chapter 4
Function of Departments
4.1.Purchase Department
Purchase department plays a crucial role in the company and it has its effect on every vital factor
concerning the manufacture, quality, cost efficiency and prompt delivery of goods to customers.
Its function is to procure materials, supplies, machines and tools on favourable terms and in
accordance with the desired standard of quality.
The company is having a centralized purchase department headed by the General Manager
(materials). Under him is the Purchase Manager. He is assisted by two purchase officers and
Office assistants. The Purchase manager coordinates all the purchase activities. The Purchase
Manager reports the details to General Manager and Managing Director.
Duties and Responsibilities of the Purchase Manager
 To identify and choose the best suppliers for supplying materials.
 To ensure the quality of materials purchased and procure it at the most economical
price.
 To ensure continuous-availability so that there may be uninterrupted flow of material
for production.
 To, make purchase of right quantity at the right time to keep investment in materials
at a minimum.
 To purchase proper quantity and good quality material in order to minimise wastage
and loss in production.
 To develop alternative sources of supply so that material can be purchased from those
alternative sources if a particular supplier fails to supply the material.
 To adopt most advanced method of purchase to ensure the smooth delivery of material
from supplier and to avoid the chances of any dispute and financial loss.

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Purchasing procedure
(a) Identifying materials
(b) Exploring the sources of suppliers
(c) Issuing purchase order
d) Receiving and inspecting materials
e) Checking and passing of Bills for payment.
Factors considered while selecting materials
(a) Manufacturing capacity
(b) Reliability of suppliers
(c) Financial condition of suppliers
(d) The management of the supply firms
(e) Price quoted
(f) Terms of payment
(g) Terms of delivery
(h) Whether the product supplied satisfies all the specifications.

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Materials purchased
(a) 100 % cotton yarn of different specifications
(b) Sizing chemicals Alpanol, tapioca starch etc.
(c) Loom spares
(d) Electrical equipment
(e) Packing materials and office stationary
Yarn
Before purchasing the yarn, the quality parameters are checked and getting assurance from
yarn suppliers such as count, strength, twist, imperfection level, CV % of the count, CV % of
the strength of the yarn. For checking or measuring the above parameters, various equipments
are available in the laboratory. The company purchasing a quality yarn that is auto cone, auto
spliced, electronically zero cleaned yam for making 100 % dying standard quality fabric for
export garments.
Greige Fabric
The buyers have their own standards for quality and the company has always satisfied the
requirements of the buyers. Even then, the company follows a stated quality policy, a four
Point System, from the Textile Distributors Associations, Inc. USA and American Textile
Manufacturers institute. Inc. New York
.
Factors Considered while Selecting Suppliers
• Manufacturing capacity
• Reliability of the suppliers.
• Financial condition of the suppliers.
• Management of the supply firm.

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• Price quoted
• Quality for which price quoted is applicable
• Terms of payment
• Terms of delivery
• Specifications to which the products are manufactured

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Fig 4.1

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Fig.4.3

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4.2 Production Department
Among all the functional areas of management, production is considered as a crucial in any
industrial organization like Kitex Ltd. Production is the process by which raw materials and
other inputs are converted into finished product. In Kitex mainly the production of greige
clothes take place under the production department.
The Production Manager is known as the weaving master. The products manufactured by the
company are industrial goods and consumer durable goods. 85% of the goods (gray cloths)
are sold as such to the other companies or production units in the textile industry where the
same are converted into useful or consumer durable textiles or garments. 15% of the gray
cloths manufactured by the company is converted into lungies, dhotis, mulls and bed sheets.
The conversion process includes bleaching, dyeing, resizing, printing etc.
The production department or factory has installed capacity of 383 power looms. 100%
capacity is utilized for production. In addition to the power looms, the company has installed
22 modern looms, it is called as sulzer looms. It is imported from Newzealand. The
advantages of sulzer looms are high speed and more production than power looms. It is fully
automatic, more productive, high quality of goods produced and manpower requirement is
very less. Width of the cloth produced by modern looms are more than power looms.
Modern sulzer looms are operated by qualified and highly experienced personnel. They are
hired from other textile mills and paid well. Other workers are trained to operate the modern
looms under the experienced workers. Ordinary power looms require two persons per loom
but two modern looms require only one person. Around 50% of labour expense can be saved
by modern looms. The ordinary looms are also in the process of automation and
modernisation. 75% of the modernisation work is completed.
Functions of the Production Manager:
 Ensuring production of good quality fabrics in accordance with the requirements and
maintain high productivity standards.
 Raw materials, industrial scheduling and coordination with purchase department.
 Prescribing required quality control measures and implementing the same.
 Arranging dispatch of fabrics, process as per the requirements of sales department.

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 Arranging recruitment through personnel and administrative department and
arranging training for required personnel.
 Implementing perspective maintenance style for all equipment and machines installed.
 Preparation and submission of management information report.
Functions of the production department
• Design of the product.
• Design of the production system.
• Production planning and control.
• Selection of the location.
• Layout of the plant.
• Selection of the plant and equipment.
• Research and development.
Production Process
There are a lot of processes to be done to the cotton yam before it undergoes the process
weaving, and the whole department is known as weaving preparatory. In preparatory
department the yam undergoes the process namely warping, sizing, beam drawing and
knotting etc.
 Warping
The yam from the spinning mill comes in the forms of cones. In order to weave this, yam has to
be winded into warping beams. Warping is the process of winding of threads on a warping beam
from the cones according to the number of ends specified for each fabric.

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 Sizing
It is the process of strengthening the yam wound on the beam. In this process the warp is
passed through a sizing chemical. The sizing chemical is known as Alpanol which consists of
corn powder and tapioca powder. A fungus resistant called Fab proof is added to keep the
yam in good condition. This process makes the yam more rigid and this prevents from
breaking while weaving. The purpose of sizing is to ensure processing of warp in looms with
minimum breakings.
 Beam Drawing
The warp ends from sized beam is first drawn through dropped wires, heads and then
1000 different reeds according to the design to weave.
 Beam gating / Knotting
These drawn beams are knotted in the loom for weaving. Trained and experienced beam
drawers are appointed to do this work manually.
 Pirn winding
It is the process of winding yam on pirns for preparation of weft yarn for weaving. There are
two types of winding machines in Kitex Ltd. They are:
• Automatic pirn winding machine
• Circular winding machine
 Weaving
It is the process in which two distinct sets of yarns or threads, called the warp and the weft are
interrelated with each other to form a fabric or cloth. The warp threads run lengthways of the
piece of cloth, and the weft runs across from side to side.

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 Grading and sorting
In sorting or grading, the greige fabrics are checked confirming that all the technical condition
stipulated for fabrics for each style are strictly satisfied. At the same time piece length is measured
and the production fabrics per shifts are registered. The activities include cleaning the fabrics from
thread ends, knots and tray, putting a special marking with a pen on the ends on the fabric piece
indicating the fabric style, measure and grade.
 Folding
After classification the -fabrics is folded by a machine (1 meter pinning) and the length of the
fabric is measured and marked.
 Bailing (Packing)
The graded or sorted fabric packed in bailed condition under the supervision of bailing
supervisor on the basis of quality. The standard packing in one bale contains 1000 meters. For
bailing the company has a bailing press. Production is undertaken on the basis of orders
received for greige cloth. Since the company is having regular orders, there is continuous
production throughout the year.
Safety Measures
Safety is of greater importance in any industrial undertaking. The company has established safety
measures as provided in the Factories Act, 1948. The company regularly conducts safety
awareness programs and training class for its plant workers and supervisors. The production units
have several safety mechanisms like fire fighting equipment, alarm systems, first aid facilities etc.
The company has its own ambulance

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Fig.4.

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4.3.Quality Control Department
The company Kitex Ltd practices strict quality control measures to ensure customer
satisfaction. It is very important to understand the customer requirements to provide value
and manage the customer satisfaction for retention of existing customers and to create new
customers.
Total Quality Management
It is an integrative philosophy of management for continuously improving the quality of
products and processes.TQM is based on the premise that the quality of products and
processes is the responsibility of everyone involved with the creation or consumption of the
products or services which are offered by an organization, requiring the involvement of
management, workforce, suppliers, and customers, to meet or exceed customer expectations.
In face of increasing competition and increasing level of expectations of customers, it is
essential for an organization to achieve quality in an effective way. Total Quality
Management journey started at the Anna group on 6th June 2005. It is a long journey towards
success. Quality means 100% quality in attitude, speech, people, work, discipline,
surroundings, product etc.
5s technique for good housekeeping is a part of TQM. It is a Japanese method. It helps to:
1) Improve productivity
2) Save time
3) Solve space constraints
4) Improve morale of the employees.
The company got this certification by successfully implementing the following 8 key
elements:-

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1. Ethics 5, Integrity
2. Trust 6. Training
3. Team work 7. Leadership
4. Recognition 8. Communication
Quality Objective
 Increase the production by 60 % from the current level by adding essential machinery,
manpower and solving space constraints.
 Reduce the present product rejecting by 50 %.
 Reduce the specific fuel and electricity consumption.
 Reduce the customer complaints by 50 % by improving the quality of the products or
services.
Quality policy
The company is committed to manufacture and deliver quality greige fabrics and processed
fabrics as per the customer specification, effectively in a professional and environmental friendly
manner, on time and the right cost with at most customer satisfaction to become a world class
organization through continual improvement

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4.4. Stores Department
In this department, the store manager has the supreme authority. He is assisted by four
persons. The Store Manager reports to General Manager. This department stores all the
materials and controls the movement of the materials to different departments. It stores
materials like yarns of different specification, spare parts, electrical goods, lubricants, tools,
office stationary, packing materials etc. The items are coded for easy handling. The issues of
raw materials are controlled by the stores department Yarn and purchase materials are stored
in the production department godown and packing section respectively, this is due to the lack
of sufficient space in the store and to facilitate easy handling of both items. But the stores
department controls the issue of both the items.
Functions of the Store Manager
• Prepare purchase requisition according to the needs of materials.
• Ensures the sufficient quantity of stock so that there may be uninterrupted flow of production.
• Ensures the quality and quantity of materials received in the store.
• Ensures that the materials ordered reach the store in time.
• Prepare stores ledger to keep record of stock.
Recording of Stock
Perpetual stock records are kept for raw materials, spares, work in progress and finished
goods. These records are periodically reconciled with accounting records. This is a periodical
reporting of storage of excess, if differences are there, they are investigated and necessary
adjustments are made in the final accounting records and store ledger accounts maintained in
the stores. The store department is fully computerized. A special software package is

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designed and installed for inventory management in the stores. All receipts and issues are
recorded in the computer. ABC analysis of inventory is done on regular basis of physical
stock check once in a month.
Material control system
The company has a material control system which ensures that right quantity of
material is available in to right place with right amount of investment. Two levels of material
control exist in the company, quality control and financial control. The Production Manager
and Store Manager are primarily interested in quantity control because it is their
responsibility to see that there is no stock out problem.
Features of Material Control System
• Continuous availability of all types of materials in the factory.
• No excessive investment in stock.
• While purchasing materials, it is seen that it is purchased at low price by the store
department.
• Information about availability of materials is continuously made available by the store
manager.
• There is proper co-operation and co-ordination among departments.
• As a part of material control system there exists an internal check on material so as to
avoid misappropriation of store items.

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Store Keeping
The quantity, quality and other specifications of items issued are recorded in the stores ledger
control account which is prepared and maintained by stores department.
The stores department is fully computerized. All the issues and receipts are recorded in the
computer. ABC analysis on inventory is done on a regular basis. Physical stock check is done
in every month.
Special care is given to material to free them from deteriorating in quality due to rust, fungal
attack etc. with the help of eco-friendly chemicals. All stock of raw materials and spare parts
are stored in assigned areas only. Access to these areas is restricted. All stock of raw
materials and spare parts are insured against fire and hail damage.

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4.5.Personnel and Administration Department
Now-a-days, HR is considered as the most important asset of an organization. A skillful and
motivated work force is present behing every successful company. Kitex Ltd. has a good HR
department and it maintains good relations with the employees. This helped the company to
achieve the tremendous growth. All the employees’ related activities are managed by this
department.
Working time : 9 am to 5 pm : 9 am to 4 pm (Saturdays)
Functions of Administration Manager
The mainfunction or roles of Administration Manager are:
 Advisory role: Industrial psychology and sociology.
 Operative and service role.
 Conciliators role.
 Specialist advisory role
 Formulation of HRD function and suggesting the HRD needs of the organization.
 To find out the ways and means of implementation of HRD function.
 Monitoring the HRD functions of the organization.
 Total commitment towards the implementation of HRD.
Duties and responsibilities of Personnel Manager
1. To create necessary infrastructure for HR development activities.
2. To liaise with HR manager in identifying areas for HR development.
3. To arrange proper placement to trained employees.
4. To make the company and employees to take part in HR development activities beneficial
to both, the employees and the management.
5. To monitor utilization and effectiveness of HR development training.

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The activities associated with the department
I. Human Resource Planning
Human Resource Planning is understood as the process of forecasting an organization’s future
demand for, and supply, of right type of people in right number. In Kitex Ltd. the concerned
department is always updating the list of people (after all preliminary formalities).
II. Recruitment
It is the process of searching for and obtaining applicants for jobs from among whom the
right candidate can be selected. Recruitment process is done after the job analysis and job
design which specifies the tasks and duties of job and qualification expected from the
respective job holders.
In Kitex Ltd. the Personnel and Administrative Department has clear cut recruitment
planning. For this they give advertisements in newspapers and other media. After collecting
all applications, the department sorts all the applications and calls the right candidate for the
interview. This process comprises of 5 interrelated stages. They are:
♦ Planning
♦ Strategy development
♦ Searching
♦ Screening
♦ Evaluation and control
In Kitex Ltd. internal recruitment also takes place. This includes present employees,
employee referrals, former employees and former applicants. For the recruitment of office
staffs and managerial personnel, external sources like advertisement in newspapers,
employees weekly etc. are used. Other sources are advertisements in company web sites,
employee referrals and resumes of candidates which the company passes. While selecting the

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weaver trainees and helpers, qualification along with sufficient experience in the industry is
also required. They can directly appear for interview. Sometimes selection order is on the basis of
the recommendation from the known person. For skilled jobs like fitter, electrician, technician, jobber
etc. information is passed through advertisement. For this, experience in respective field is good
advantage.
Interview and selection
After screening test the candidates are called for the interview. For the post of office staff and
managerial position various other tests are also conducted with the help of experts in the
field. The short listed candidates are selected for an interview. The interview panel consists of
MD, G.M, Departmental head and administration manager.
For the “post of work men interview selection is conducted usually on second Saturdays.
Probationary period
After the section process, the selected supervisory and managerial positions holders have to
undergo probation of 6 months. During this period monthly evaluation is done on the basis of
following criteria:
✮ Professional knowledge
✮ Promptness
✮ Dependability
✮ Attitude towards supervisors
✮ Attitude towards co-workers
✮ Leadership and initiative qualities
✮ Attendance and punctuality

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Grades are given like satisfactory, unsatisfactory, outstanding and good. If a candidate gets a
satisfactory grade in consecutive months, he will be eliminated before the termination of the
probationary period. Conformation is done only after the probationary period.
Training and Development
It refers to the imparting of specific skills, abilities and knowledge to an employee.
Successful candidates placed on the job need training to perform their duties effectively. For
the weaver trainees, the period is 1 year.
In addition to the technical training, training program is conducted by Kitex community
college. The company also conducts on the job training programs. Training program includes
morning and afternoon sessions. During the training period food and accommodation is
provided by the company. After successfully completing the training program the candidates
are awarded certificates
Performance Appraisal
Yearly evaluation of performance is done for the employees. The evaluation criteria for the
managerial and supervisory levels are:
 Conceptual skills ability.
 Decision making skills ability
 HR skills ability .
 Organizational skills ability.
 Personal characteristics
 Job ability
 Integrity and honesty

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Employee remuneration
Remuneration of employee occupies an important place. Remuneration is the compensation
that the employee receives in return for his or her contribution to the organization. In Kitex
Ltd. the organization provides all remuneration insisted on by the Govt. of India and the
Govt. of Kerala. This includes wages and salaries Incentives Fringe benefits etc.
Wages and Salary
The company follows time rate system and piece rate system. The employees other than the
office staff and plant general workers come under this system in which payment is made
according to quantity produced on a monthly basis. Salary is paid along with the pay slip,
which contains details of the pay. At the time when an employee receives salary he should
sign on the copy of the pay slip and it is filed in the department. The compensation package
consists of:
Basic pay -DA + HRA+ Conveyance + Outfit allowance
Incentives
Besides the above package the employee will get other incentives like production incentives,
monthly incentives etc.
Employee welfare measures
In Kitex Ltd. labour welfare measures can be divided into statutory welfare measures and
non-statutory or voluntary welfare measures.
Statutory welfare measures
Accident benefits
If the employee, covered under the Employee State Insurance Scheme (ESI), suffers with an
accident during work he wtll be paid as per ESI scheme. If the employee is not covered under
ESI scheme, the company will meet all expenses and grant him special leave in case of any
accident. A group accident policy is also taken by the company by which all the employees
will be benefited.

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Annual bonds
The company pays annual bonds to its employees based on the company’s performance in the
previous year. 8.33 % to 20 % of profit is given as bonus in every year.
Canteen
The company has separate canteen for male and female members. For drinking water separate
water coolers are also installed in the company wherever necessary.
Gratuity
Kitex Ltd maintains a gratuity scheme for its employees who have completed 5 years of
experience including training period.
Provident fund
The company contributes 12.5 % in the employee P.F scheme.
Voluntary welfare measures
 Attendance allowance.
 Uniform allowance.
 Children’s education allowance.
 Free tea and coffee for office staff.
 Funeral expenses on the death of family members of employees.
 Saving scheme for employees.
 Stands as guarantee for the employees to buy vehicles and household on hire
purchase.
 Free accommodation is granted to female employees.
 One day tour program is conducted once in every 2 years
 Health and safety measures.
Hostel
The organization provides separate hostel facilities for the ladies and gents. It includes
canteen, accommodation and entertainment facility. For the purpose of administration of
ladies hostel, organization has appointed a hostel warden and two assistant warden and hostel
staff.

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In every weekend the P & A manager or personnel officer visits and check the facilities and
functioning of the hostel,
Security department
For the security and discipline of the company, it provides a security department under P & A
department. This includes a security officer and staff. The main function of the security
officer is to check the baggage and carriers coming into the organization and the product
delivered from the packing section, The security department marks in the register the quantity
of the product, place, time etc.
Trade Unionism
Kitex is a non-unionized company. It is a great privilege for the company as a union free
company. This is maintained through good employee relation.
Industrial relation
Industrial relation is concerned with the relationship between management and workers. In
Kitex Ltd management is conscious about maintaining good industrial relations between
management and workers. Regulatory mechanism helps in resolving any industrial disputes
Promotion
Promotional activities contribute to the employee’s satisfaction and motivation. If the
employees qualify for promotion and the company does not promote them, it will lead to a
high rate of labour turn over.
Transfer
Transfer involves a change in the job (accompanied by the change in the place of the job) of
an employee without change in responsibilities or remuneration.
Separation
Lay off, resignation and dismissals separate employee from their employer.
Separations are painful to both the parties and should therefore administer carefully. They
are:
✣ Lay off: - Temporary separation.
✣ Resignation: - Termination of employment at the instance of the . employee.
✣ Dismissal: - Termination due to excessive absenteeism, serious misconduct, theft of
company property etc.

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4.5.Finance Department
Finance is the life blood of business. Finance department consists of all the managerial
activities of raising funds and its effective utilization. Finance department lies in decision
making area of investment, finance and dividend. The finance department looks after the
investment activities of the company. It also handles the details related to taxation. The legal
matters are also handled by the finance department. It controls the fund transfer of all
divisions of Kitex, to the requirements of various divisions, funds are released. The company
has a very strong financial position with sufficient reserves.
Payment of wages, salaries and other benefits are done by finance department. Finance
manager is the head of finance in Kitex. He decides when and where to acquire funds to meet
the firm’s investment needs. He should determine the proportion of debt and equity. The
finance department should strive for obtaining the optimum capital structure for the company.
Books Maintained by Finance Department
• Cash Book
• Bank Book.
• Sales Pay Book
• Purchase Pay Book
• Journal Register

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Duties of Finance Manager
• Maintaining the books of accounts.
• Preparation of budget estimation.
• Preparation of Administrated reports, schedules of the employees.
• Preparation of annual and monthly accounts.
• Verification of all proposals related to finance.
Functions of the Finance Manager
 Recording day today transaction- accounting.
 Preparation of various statements regarding stock, receivables etc.. which arc to be
submitted to various authorities.
 Planning and controlling of the expenses / funds for production.
 Approving and making payments to different parties like creditors, suppliers etc.
 Receiving payments from customers / dealers in specified time.
 Raising short term loans / credit from bank and other financial institution.
 Preparation of sales budget / revenue budget and expenditure budget on a quarterly
basis.
 Preparation and maintenance of costing records.

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 Preparation of funds flow and cash flow statements for every month.
 Timely preparation and filing of financial records.
 Preparing and filing of quarterly and final income tax returns.
 Preparation and implementation of cost reduction and cost control programs.
Functional areas of Finance Department in Kitex
a) Determine financial needs
b) Determining sources of funds
c) Financial analysis
d) Optimal capital structure
e) Cost volume profit analysis
f) Profit planning and evaluation
g) Capital budgeting

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4.6.Marketing Department
Marketing is the activity through which a company is able to find out its potential customers
and sell out its products and involves the integration of a number of activities starting from
the formulation of plans for the products to its profitable selling and consumption.
In a manufacturing unit, two activities are usually considered to be of prime importance, they
are production and distribution. The main purpose of a business is to create customers and the
various process involved in finding out customers and knowing their needs and wants and
placing goods in their hands is known as the marketing process.
Role of Marketing Manager
 Monitoring of orders taken and to ensure the prompt delivery.
 Occasional field visit to follow up on sales executives.
 Direct enquiries to be dealt with.
 Maintenance of customer relationships.
 Market survey report analysis.
 Supply of produce based on the order taken and handling all collection of cash.
Marketing Department of Kitex
It scans the environment, analyses the marketing opportunities, designs marketing
strategy, implements and controls the other marketing functions. It employs direct marketing
strategy, thereby avoiding intermediaries.Kitex enjoys a large number of customers in core
markets, especially in the Southern Kerala market in which it has high demand. It has more
than 2500 dealers spread all over Kerala.

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Co ordination of marketing activities
The marketing executives in Kitex follow certain procedures:-
All the sales executives have to report to the Asst. Manager in sales every day. The Asst.
Manager and Marketing Manager are in constant touch with the sales executives who are in
field. The lower executives have to report daily sales on all Mondays.
Marketing Functions
Kitex has a dealer network of more than 2500 dealers, who are spread all over Kerala. The sales
are concentrated in Kerala, Tamilnadu, and Karnataka. In addition the company has direct outlets
in Tamil Nadu also. To the direct outlets in Kerala, dealerships are allotted only after assessing
credit worthiness, efficiency etc. Dealers obtain the products upon order over the van of company
and also products are delivered either at godown or show room.Competitors of Kitex are MCR,
Janson, Angel, Ramraj etc. and they perform various marketing strategies like advertising in
media using film stars. In the case of all major companies, the margin is very high when they
sell their products to dealers. However, in the case of Kitex Ltd the margin is comparatively
low. Kitex products achieve the maximum market share in the period of festivals like Onam,
Christmas, Ramzan and Vishu. In normal case, profit margins of the products are 15% to
20%. Kitex also has technical competence; it has introduced new automatic weaving looms
from Switzerland which except Janson, no other manufacturers have introduced.
Marketing Mix
It consists of everything a firm can do to influence demand for its product. Kitex also follows
the ideas of marketing mix for better market capitalization., they are;
Place mix
Location of plant is one of the early decisions an entrepreneur has to make for earning
maximum profit. Location determines the survival as well as prosperity of the. business in a
free market economy. The unit is located in Kizhakkambalam village near Aluva. The total
extend of land is around 1650000 square feet. It is well connected with the road. The
availability of skilled and unskilled labour is also a factor in selecting a location.

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Product mix
The greige fabrics produced are of finest quality and is mostly used for export purpose.
They provide greige fabric lungies, bed sheets, mull in various quantities as per customer
specification. The Kitex products are reputed for their quality and are free from weaving
defects up to a great extent. Their special feature is that the raw materials arc passed through
after strict inspection.
Price mix
The company maintains a stable price for a long period of time. Price of the product depends
on the price of yarn. Kitex maintains a constant price and concentrates on quality of product
and so it requires less investment in advertisement and sales promotion and also a well
formulated pricing policy is provided.
Promotion mix
To promote its products, advertisements are used by Kitex. The basic function of an
advertisement is to influence and motivate people to buy products. The Marketing Manager
and General Manager directly analyse and select the best advertising agencies for covering
their advertisement plans. Aggresive promotion is not part of Kitex’s promotion mix.
Kitex does not have any brand ambassadors to promote its products. Kitex chooses the local
media for advertising their products.

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Channels of Distribution
Distribution is the act of carrying goods and services from the producer to the consumer.
Kitex has more than 1000 dealers spread across various parts of Kerala.
Distribution of Consumer Goods
Producer———— Consumer
Producer——— Retailer——— Consumer
Producer——— Wholesaler ——— Retailer——— Consumer
Distribution of Consumer Goods
Producer———— Industrial user
Producer———— Industrial Distributor ———— User

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Fig 4.

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Chapter 5
SWOT Analysis
The basic objective of SWOT analysis is to provide a conceptual framework to reflect on the
firm’s ability to overcome barriers and to avail opportunities emerging in the changing
environment. The diagnosis of strength and weakness can be fruitfully acted on if the
environment factors and market conditions are considered always with the internal capabilities.
5.1. Strengths
• High quality product with respect to local competitors.
• No trade union exists in the organisation .
• Highly skilled labour and experienced work force.
• Company has good reputation in the local textile market.
• Diversified range of products.
• Managed by a team of professionals.
• Proper financial stability.
• Largest manufacturer of textile products in Kerala. .
• Effective distribution channel
• Proper flow of communication between the employees.

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5.2.Weakness
 High price of Kitex products and lack of good selection.
 High cost of production.
 Not utilizing 100% of installed capacity.
 No fixed production and sales. It is depends upon season.
 Lack of modern weaving machines and quality checking machines.
 Defective marketing strategy lacks effective advertising and publicity.
 Less usage of modern ways of transaction.
 Complaints from the dealers regarding the price of the products .
 The main decisions are taken by the chairman without concerning the subordinates.
Opportunities
 Business expansion into other state markets.
 Emerging mall culture .
 Increasing retail expansion
 Growing market demand in the neighboring states.
 Strong dealership in Kerala market.
 High demand for cotton material.
 Customer’s perception towards qualityproducts.
 Increased opportunities in export market due to globalization.
Threats
 Threats from major Competitors like MCR and Ramraj.
 The increasing demand of suppliers.
 Changes in customers taste and preferences.
 India faces great threat from Chinese textile market.
 Changing rules of government relating with textile industry.

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CHAPTER 6
SPECIAL TASK
The management problem facing the company is mainly the complaints from their dealers
and perspective of Kitex products among customers with respect to their competitors such as
MCR and Ramraj. The Kitex Lungies and Dhoties are mainly sold by the dealers in the
market. The products of MCR and Ramraj which are their main competitors have greater
market share than Kitex in the state.
Problems faced by the management
 Kitex dealers are not interested trading in high priced branded products which give
them fewer profits
 Majority of dealers are not satisfied with the distribution of Kitex lungies and Dhotis.
 Brand image and quality are the only factors which contributed to the popularity of
Kitexs lungies and dhotis.
 Price, Display and style were not attractive for the customers.
 A considerable number of dealers had the opinion that Kitex lungies and dhotis are
costlier and lack good selection.
 Dealers had a common opinion that numbers of designs in a box of lungies and dhotis
are not sufficient.
 The competitors such as Ramraj and MCR brands give more designs and selection
than Kitex.
 The customers mainly prefer buying MCR and Ramraj products rather than Kitex
products mainly due to affordable prices and varieties of design .
 The main reason for the preference of MCR dhotis is the brand images
 Cheap prices and attractive designs make the unbranded lungies and dhotis the best
sellers.

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SUGGESTIONS
 It is suggested that Television is the most effective media to promote brands.
 The company could make famous personalities like film stars as brand ambassadors.
 Low priced lungies and dhotis should be launched in a separate brand to attract the
lower income group which comes a mammoth portion of the customers.
 Introducing lungies in a separate brand name will not affect the sale of the existing
brands.
 New prints and designs will surely boost up the sale of existing lungies. Colorful and
attractive design should be given for dhotis.
 If feasible more profit margins through liberal schemes and incentives could be
adopted to make the dealers push the Kitex products more.
 Number of designs in a box of lungies and dhotis should be increased.
 System of replacement of rejected items should be improved since there is a complaint
about this among the dealers.
 Kitex lungies and dhotis need more advertisements since the strong opponent
 Frequent advertisements in TV will definitely improve the sale.
 Much stronger relations could be built with dealers by taking them into confidence
through consistent promotion of the products.
 It is desirable to have a low priced lungies and dhotis to aim the market of lower
income people.
 It is also desirable that the company must give more importance to maintain good
relationships with dealers.
 Kitex can go further for marketing the product to more customers and to new
segments.

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Chapter7
Findings, Conclusion and Suggestions
7.1.Findings
• The company has diversified products in the market.
• Kitex textile products have a great demand in the local market.
• Majority of the dealers complain about the products because of its high price and lack of
good selection.
• There is no trade union existing in the organization because of the good relationship
between the employees and management.
• Majority of the employees are women workers which provide self empowerment to them.
• Brand image and quality are the factors which contribute to the popularity of Kitex textile
product
.
• Kitex is having a fair complaint redressal system.
• The employees have enough respect towards their subordinates.
• The company has good export potential.

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7.2 .Suggestions
• Most of the consumers are price sensitive, so, if the company reduces the price of it
products, it will increase the demand in the rural areas.
• The company needs to expand its business in neighboring states also.
• In order to increase the sales, the company must make strong advertisements.
• Complaints from the customers should be considered and steps should be taken to
improve the satisfaction of customers.
• Conduct market researches regularly inorder to know the market position of company.
• Various sales promotion techniques are essential to increase sales.
• For complex activities, more training should be given in order to reduce damage and
other technical defects.
• The firm should explore opportunities and promote social networking activities through
the social networking websites.
• The company needs to implement latest machines for production in order to make good
varieties of products.

Page | 67
7.3. CONCLUSION
The study was conducted at Kitex Ltd., Kizhakkambalam, Kerala. This organization study
was done to understand about the organizational structure and the departmental functions and
to make some recommendations and suggestions for the improvement and development and
smooth functioning of the organization. The data with regard to the study, collected from the
Kitex Ltd., has enabled to understand the Organisation structure and process of production of
textiles. The study gives information about the manufactured products, organizational
structure of the company, departmental functions etc.
Each department in Kitex was analyzed and it was come to the conclusion that the various
processes are controlled and monitored under skilled supervision and performed by
hardworking workers. The company provides good working environment to the employees
thereby enhancing the work force productivity.

Page | 68
BIBLIOGRAPHY
REFERRED BOOKS
 Arun Kumar and Meenakshi, (2006), - “Marketing Management”, second
edition, Vikas publishing house Pvt Ltd NewDelhi.
 Kothari.C.R- Research Methodology methods & techniques
New age international publishers, 2004.
 Aswathappa K- Human Resource & Personnel Management
Tata McGraw – Hill publishing co. ltd., 1999.
Reports
 Various reports kept in its departments
WEB SITES
www.annaaluminium.com
www.textileindustry.com
www.wikipedia.org
www.ask.com
www.lestyle@vsnl.net
www.amazon.com

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