1.

Introduction and Design of the Study

Every organization has its own objective. The objectives differ from organization to
organization. The main purpose behind the formation of any organization is to attain certain clear
and predetermined objective.
The organization study conducted at Sundaram Textiles Limited during 30 days period.
The Sundaram Textiles Limited located in nambi nager, Nanguneri,Tirunelveli.
The Mill strived to achieve the quality in its production and supply.This is the
registered member of SEBI and the shares are handled inside the family members and not issued
to public. Hence the family members make over the control of the company.

.1 Objectives of the Study

As a part of Master of Business Administration the trainer is supposed to complete the In Plant
Training at the end of 3th semester of the course. Every person has to choose the industry and to
take an inplant training to gain the real experience in the industry. I have done my Inplant
Training in Sundaram Textiles Limited, Nanguneri (Tirunelveli Dt.). It is the biggest concern and
one of the sister concerns of TVS groups one of the leading industrial group not only in india but
also all over the world. The training period is for a period of one month.

The training will be much usful to extend the knowledge.

To study functions of various department.
To get a practial knowledge
To study problems faced in each depatment
To study the coordinator among the department
To study due reports between management and workers.

.2 Nature of the Study

This study has been focusing into the day to day functioning of a company who deals with
automobile sales. This study has given the adequate knowledge regarding the functions of an
organization.

.3 Scope of the Study

The study gives a general awareness of the functioning of the various departments. The period
available for the study was one month. Through attaining information about various departments
and also preparing analysis regarding the strength, weakness, opportunities and threats of the
company, this knowledge can be applied by a student while working in a company.
In this survey the emphasis is to identify the effectiveness of training programme to the
employees in Sundaram Textile Mills. This extend to enable the management to conduct better
training programme and to adopt new methods of training program.

1.4 Chapterisation
1.4.1 Chapter-I
This chapter includes introduction of the study, objective of the study, nature of the study.
1.4.2 Chapter-II
This chapter includes Industry Profile,Company Profile, Organizational Structure, Overall
Organizational Chart, Production Department, Processing Flow Chart, Marketing Department,
Human Reesource Department, Finance Department.
1.4.3 Chapter-III
This chapter includes Strengths, Weaknesses, Opportunities, Threats
1.4.4Chapter-IV
This chapter includes Managerial Skills, Learning Experiences
1.4.5 Chapter-V
This chapter includes Suggestions, Conclusion.Bibliography

Profile of the Organization

2.1 Industry Profile

2

Textiles industry today plays a leading role in the economy of the world. As described by
Mahatma Gandhi (Father of our Nation), The best plant in the world is cotton plant because it
serves to maintain the discipline of the people. Every country depends upon the textile industry
because it also reflects the culture of the country and the people where the industry belongs. Year
the industry suffered a lot. Now slowly the textiles industries are regaining its old position.
Particularly in India, Tamil Nadu is famous for textile industries as many of the industries are
situated here.
The industry also famous because without these industries no one in the world would
survive. As much importance is given to these industries only a person who is having a major
capital can be able to start the industry because it involves many process and requires many
machines to complete the process successfully. So it belongs to the major industrial category.
The minimum capital required to start the industry is at least Rs.5 crores. So only big people
concentrate in this section.

2.2 Company Profile

Sundaram Textiles Limited
The Sundaram Textiles Limited started in the year 1962 by the sons of T.V.SUNDARAM
IYENGER, Mr. T.S. KRISHNA and T.S. RAJAM as the part of TVS group. The mill was started
at Nanguneri in order to help the people of the founders native place.The native place is
Thirukurrungudi a small village situated near by Nanguneri. As the spinning business was new to
TVS initially this mill was under the administration of M/S. Seethalakshmi Mill group from
1962 to1980. From 1980 onwards, the mill was taken over by the TVS group and having the
capacity of 40,000 & above spinddles and doubling of yarn facility. Mill is supplying Yarn in the
range of 20s counts to 140s counts to International and domestic customers.
The Mill strived to achieve the quality in its production and supply.This is the registered
member of SEBI and the shares are handled inside the family members and not issued to public.
Hence the family members make over the control of the company.

Quality Policy

To achieve and maintain customers delight by supplying consistent quality products meeting
their requirement through continous improvement and employees involvement.

2.3 Organization Structure

The chart simply depicts the flow of the control in the organisation from top to bottom of the
organisation. It can represent in the pictorial table format as follows. Here the company works
under the guidance of the Chairman and Vice Chairman and Board Of Directors. The Vice
Chariman herself act as the role of the Managing Director of the company.
Figure 2.1: Organizational Chart

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2.4 Overall Organization Chart

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This is the organization chart of the company and the control flow from the vice chariman to all
the supervisors and to the workers.

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Figure 2.2: Overall Organizational Chart

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2.5 Production Department
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The chart depicts the flow of the production department from the top to bottom.

Figure 2.3: Production Department Chart

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2.6 Processing Flow Chart

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Figure 2.4: Processing flow chart

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The department has to play a major role because the company can sell the things or its articles
when the products are produced. The process of the company is given below:
Mixing
7

Blow Room
Carding
Comber
Ribbon Lap former
Drawing
Simplex
Spinning
Auto coner
Checking section
Doubler winding
Doubling
Singeing
Mercerizing
Bundling
Packing section

2.6.1 Mixing
The other function is mixing where the oil is sprayed in the cotton. It is done in order to improve
the quality and to increase the life span of the cotton. The process takes a time period of one day.
Now the real production process starts from here.

2.6.2 Blow Room

On this stage the cotton enters into the first process called Blow Room, where the raw cotton is
converted into cotton laps.
Input
Raw Cotton
Work-in-Process
Its is a process for further opening cleaning and formation of lap.
Working Hours : 19-20 hours per day
3 Schutcher machines
1 persons
The cotton laps may long up to 50 meters and should possess the following weights according to
the various counts. The are given as follows:
Table 2.1: Lab Weight

S.No

Count

Mixing

Lap Net Weight

Lap rod

Lap total weight

50

M.MECH+L.MCUS

16 kg

1.500kg

17.5kg

2
3
4
5
6
7
8
9
1o
11
12

60
68
69
70
79k
100k
112c
2/70c
2/80
2/100
2/120

M.MECH+L.MCUS
M.MECH+L.MCUS
M.MECH+L.MCUS
M.MECH+L.MCUS
M.MECH+L.MCUS
M.MECH+DCH
M.MECH+DCH
80K DHCR
80K DHCR
80K DHCR
80k DHCR

16kg
16kg
16kg
16kg
16kg
16kg
16kg
16kg
16kg
16kg
16kg

1.500kg
1.500kg
1.500kg
1.500kg
1.500kg
1.500kg
1.500kg
1.500kg
1.500kg
1.500kg
1.500kg

17.5kg
17.5kg
17.5kg
17.5kg
17.5kg
17.5kg
17.5kg
17.5kg
17.5kg
17.5kg
17.5kg

Source : Production Department

Output
Cotton laps

2.6.3 Carding
Input
Cotton Laps
Process
In this process futher opening, further cleaning an individual of fiber and formation of sliver.

Cleaning - Shift cleaning

Working hours 20-22 hours per day
18 New machines + 10 Old machines
Total machines 28
3 Person

After the raw cotton is converted into cotton laps in the previews stage is it converted into
sliver and been kept in the different cans. After the process,the second step in this carding stage
is the sliver lap formation. The slivers have been formed into lap in order to clean the cotton
from the other wastes as much as possible.
Output
Sliver cotton

2.6.4 Combing
Input
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 Sliver cotton laps.

Process
Combing of the sliver laps.The sliver lap have been opened here and cleaned to remove the dust
and wastes from the lap of cotton. The shining of the cotton is increases at this stage. The Quality
of the cotton has improved and hence it has said that the thickness of the cotton is at high when it
is at the improved quality.

Type of the machine LK250,LK64Z

Total machine 10
Working hours 24 hours per day
2 persons

Output
Sliver cotton

2.6.5 Ribbon Lap Former

After the formation of sliver the sliver lap is converted into Ribbon Lap which is called Ribbon
Lap Former.

Lap Former
In this process two steps are followed:
Sliver Lap
Ribbon Lap

Sliver Lap
It is a merging process. 8 cans of sliver laps are merged together and formation of one bundle of
Ribbon Lap. It will increase the strength of the yarn.
Ribbon Lap
After conversion of 18 cans into 1 bundle role of ribbon lap. In this process 6 role of ribbon lap
into 1 bundle role of ribbon lap.

2.6.6 Drawing
Input
Sliver cotton
10

Object
Parallalisation of fibers by doublings.
Putting certain draft to fiber.
Process
The smoothened combed cotton laps have converted into the slivers. The slivers are in 8 silvers
per can.
Finisher drawing
After completion of breaker drawing. The cotton laps are further parallalisation of fibers. It is
called Finisher drawing. After finished the finisher drawing. Then the next process is simplex.
Output
Sliver cotton

2.6.7 Simplex
Input
Sliver cotton
Objective
Drafting
Twisting
Winding of bobbins.

Process
The Rowing and drafting of the sliver laps have been done here and hence converted into twines.

Working hours : 20-22 hours per day

Type of machine LF1400A
Total machines - 11
7 persons

Output
Rolling Sliver

2.6.8 Spinning
Input
11

 Rolling Sliver
Objective
Drafting
Twisting
Winding
Process
The rolling slivers are converted into the twines by the use of spindles and pumps.
Working hours : 20-22 hours per day
Short Frame : Textool-D350- 13 machines
Jeetstex-JS3-11 machines
LakshmiRietor-D35-16 machines
Long Frame : Lakshmi-G5/1 - 2 machines
Lakshmi-LR6/5 19 machines
Lakshmi-60/A - 6 machines
Total machines - 67
Output
Yarn

2.6.9 Winding
It is done by machine by the use of man. After completion of spinning,the yarns are converted
into cones which are called winding.
10 machines available here.
120 needless are available per machines.

2.6.10 Auto Coner

It is advanced system for winding because it is done by machine.
Input
Yarn
Process
The yarn are converted into cones.
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Total machines - 8
4 Persons
60 count for export
64 count for bags

Output
Cones

2.6.11 Cheaking Section

After converting into cones, the cone should be weight of 1500 kg (for export only). The cone
can also he produced based upon customer preference also.Finally the cones are checkup under
the ultra violet light. Wheather the cones are the same counts or different counts. Find out the
correct layers.
The good ones are selected for packing.

2.6.12 Doubler Winding

Two singles yarns twisted to form a one singled twister yarn is called doubler winding.

2.6.13 Doubling
To make the double yarn by giving required twisting.
18 machines for 5 sider
216 needless are available per machines.

2.6.14 Singeing
3 machines available here.
Objective
To removal of unwanted grayans or hair fibers

2.6.15 Reeling
40 machines
Single yarn for 1 person
Double yarn for 2 persons

2.6.16 Mercerizing

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After the reeling stage the yarns of 60s and 120s counts have been taken to one place called
Mercerizing where the process is used to increase the shining of the cloth. The yarns have been
bleached and washed in order to make it much clean and hence dried in the shed. The Reels are
first dipped in the dye solution called as Sodium Hydroxide at 47.5%. The Hydrochloric acid
vemopol used as an unwitting agent.
Two waste water form the department has been cleared for some extent and hence it
would be used for the irrigation purpose of plants and trees. Which are around the factory area.

2.6.17 Bundling
After completion of reeling. The reels are bundling from bundling press. The carded yarn as well
as combed yarn.
For example carded yarn 60 counts contain 15 piece of reels for one bundle. But it was
very from number of counts.
There are 3 bundling press avaiable here.

2.6.18 Bailings
After completion of bundling process. The 40 bundle of reels are pressed by Electric Bailing
press. It is called Bailing.

2.6.19 Packing Section

It is a final section for packing. The cones are very clearly arranged by a box. One box contain
24 piece of cones after the completion of packing. The products are ready for sales.
Table 2.1: Packing Section

Sl.No

Count

No.of Piece

Net Weight

Cross Weight

Total Weight

60

24

2.100

2.150

54.500

64

50

1.100

1.150

58.80

72

50

1.00

1.50

53.80

Source : Production Department

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Figure 2.5: Packing Section

Packing Section
80
70
60
50
40
30
20
10
0

Count

No.of Piece

Net Weight

Cross Weight

Total Weight

Source : Production Department

2.6.20 Raw Materials

The main raw material of the spinning mill is cotton the cotton is purchased in bales the required
cotton has been purchased in india

: Karnataka, Andhra, Maharastra, Indore, Gujarath,

Hyderabed and Pollachi, DCH 32 and MCH 5 of cotton are used production.
DCH 32 variety is used to make counts of 80 100 MCH variety is used to make counts 40
and 60s.

2.6.21 Quality Policy

To achieve and maintain customers delight by supplying consistent quality products meeting
their requirements through continous improvement and employees involvement.
Quality control in raw material
The various quality control tests in raw materials are

Length of cotton
Trash percentage 2.5 to 2.6
Maturity test
Fiber bundle test
Micro natrine value density

2.6.22 Cotton Season

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The cotton isa seasonal product. The cotton is purchase from Andhra Pradesh, Gujarath,
Karnataka, Maharastra the cotton are purchased more if there is any way for price increase, they
are kept in stock.

2.6.23 Functions of production department

In charge of production
Control of waste.

2.6.24 Objectives of prodduction department

Improve the production
Reduce the waste.

2.6.25 5s for success of the production process

SERI

- To remove unwanted

SEITON - To order the needed particles.

SEISO

The work area, Machine & Parts of machine have to be cleaned and maintained.

SEIKETSU - To decide where the things and how it has to be place and followed.
SHITUKE - To give training on the above points to all employees and make them to follow the
rules.

2.6.26 Store Room

This is the other important section as it is mainly responsible for the over all function of the
company as all the purchase of machines and spares have been made through the stores,it have
been done under the guidance of the Vice Chariman.The words done regarding the purchase have
been divided into IV phases by the store department. They are givenas follows.
The department must to send a regarding the need of the machinery. The clerk/storeroom
Keeper has prepared the list for overall factory. They prepared the purchase order in respect of
materials, which have required.
The material received from the concerned supplier can been inspected by, the security of
the Factory and the will inform to the store incharge, they would inspect the materials before
entering the factory.

16

The preparation of particulars of goods received. The particulars are maintained in the
stores with following details which have to be maintained by the stores clerk.

2.6.27 Purchase Invoice

Stores Receipt and Day Book Ragister
Stores purchase Ledger.
After the purchase invoices are forwarded to the Excise Assistant and Clerk for taking CENVAT
(Central Exercised) credit if applicable. The original copy of purchases invoice along with a
stores receipt approved by Factory Manager and Spinning Master to Head Office Madurai for
payment.
If the goods are found to be damage/short receipt of materials/rejection the entire
consignment would be rejected and returned to the supplier without being allowed to enter into
the factory. Hence there is no possibility of cenvat credit on shirt receipted/rejected damaed
quantity of capital goods.The materials are issued to basis of indent, prepared and received from
the department fully approved by spinning master. The internal auditors have made physical
stock periodically.
The spares and various parts required for the machines have placed in the ordered
manner. They have ordered the machine parts on the basis of the utilization of the machine parts
for all the departments. They are,
Yellow - Fast moving spare parts.
Blue
- Mild moving spare parts.
Rose - Slow moving spare parts.
The storeroom function can be listed as follows:
Action taken called for quotation.
Quotation received and proposed to place order
Placed purchase order send and waiting for the material.

2.6.28 Purchased order send and waiting for the material.

These have been noted in the cards at various levels for the various departments and also the bin
card have to be maintained for the materials which have used to show the availability of the

17

material at the storeroom and also to list out the amount of materials which have taken from the
storeroom form the various department.
Production Details for the year 2009-2014
Table 2.3: Production Details

Month

Local

Depo

Export

April09-March10
April09-March10
April09-March10
April09-March10
April09-March10

913344.6
1004112.88
1020913.96
1122534.82
1115731.78

15633.2
26670.88
32531
8280
14536

193246.67
525773.84
339286.96
224901.12
329459.04

Source : Production Department

Figure 2.6: Production Details

Production Details
Local

Depo

Export
1122534.82

1004112.88

1115731.78

1020913.96

913344.6

525773.84
339286.96
193246.67
15633.2

329459.04
224901.12

26670.88

32531

8280

Source : Production Department

2.7 Marketing Department

2.7.1 Marketing Department Chart
Figure 2.7: Marketing department chart

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14536

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Functions and Activity
Market trend analysis.
Direct of customer through depo sales, depo to retailers.
Based on trend analysis, production plan is prepared. Coming under the mills based on plan due
production was made on goods send to parties.

2.7.2 Marketing Objectives

Trend analysis inform the messages quickly to the manager.
To plan the production schedule and also arrange the correct manner and easily dispatch the
goods.

2.7.3 Export
The products are regularly exported to the foreign countries. They are:

Bangladesh
Pakistan
Sri Lanka
Puru
Indoneshia

19

The marketing function plays an important role because the goods produced have to be marketed
in order to enter into the market and to get a good response from the buyers at various levels of
the market. The company opened the sale depots at the following areas for the direct sales.

2.7.4 Other State

Kolkatta
Delhi
Chirala(Andhra)
Llkal(Karnataka)
Kerala
Mumbai
Local Area
Chennai
Thirupur

The above are the direct sales depots of the company and undergo the transactions
directly with the buyers on behalf of the company. The dealers are selected by the company and
the only work of the dealer is to select a good place for the storage of the materials and also for
the selling of goods of the company. The company would receive the advance money from the
dealers for the delivery of the goods to the dealers.

2.7.5 Sales Transactions

The company enter into the sales transaction with the buyers with help of the standard brokers
available for the company.They will function on behalf of the company. The buyers will send
their need of quantity and quality of cotton to the standard brokers.
The company will send the samples of the goods needed by the brokers and also quote
the price for the product.The brokers will contact the buyers and if they are satisfed with the
quality of the product and price they will send the purchase order to the company.The company
will sell the goods to the concerned buyer.
The payment will made within the period of 45 days and if the days exceed the interest
will be calculated for the rest of the amount.These are the transactions, which are made in the
selling of the goods to the buyer.

2.7.6 Market Segmentation

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The company has segmented the markets according to the sales of the counts. They are given as
follows:
The Hard count 80s are sold well in the kolkata depot as because many of the industries
are near by the area. The Sales depots sell goods to the average of Rs. 2,00,000 every month and
contribute the half of the sales of the other depots of the country.
The soft counts (100s,120s) are sold well in the northern parts of the country as their
main function is the weaving of the silk sarees. The Soft counts may also been called in the name
of the Fine counts.

2.7.7 Competitors
The competitor for the company are listed as follows:
Precard Mills from Coimbatore.
Premier Mills from Coimbetore.
The above listed companies are the perfect competitors for the TVS group in the cotton
market. These competitors are improving their technology and hence the level of prodution have
increased a lot and the standard of the cotton is generally high.
The company is now following the Total Productivity Maintainance(TPM) with the help
of Mr. Kazhi Kawashima of Japan in order to increase the standard of the goods and services
produced. Hence it prevails as the perfect competitor to all the companies.

2.7.8 MarketingChannel
Figure 2.8: Marketing Channel

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2.7.9 Delhi sales details for month of June-14

Table 2.4: Delhi Sales Details

Place

Count

KGS

Yarn Value

Delhi

2/60c

816.48

259912.8

Delhi

2/100c

1050

516600

Source : Marketing Department

Figure 2.9: Delhi Sales Details

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600000

516600

400000

259912.8

200000
0

2/60C

2/100C
YARN VALUE

Source : Marketing Department

2.7.10 Karnataka Deatils for the month of June-2014

Table 2.5: Karnataka Sales Details

Place

Count

KGS

Yarn Value

Karnataka

60CFHCR

2550

702500

Karnataka

2/64KMDHCR

1500

577500

Karnataka

2/100CMFHCR

460

272500

Source : Marketing Department

Figure 2.10: Karnataka sales Details

800000

702500
577500

600000
400000

272500

200000
0

60CFHCR

2/64KMDHCR

2/100CMFHCR

YARN VALUE

Source : Marketing Department

2.7.11 Uttra Pradesh sales details for month of June-2014

Table 2.6: Uttra Pradesh Sales Details

Place

Count

KGS

Yarn Value

Uttra Pradesh

2/74CGMFHCR

8081.2

3768600

Uttra Pradesh

2/120CGMBFHCR

454

394500

Source : Marketing Department

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Figure 2.11: Uttra Pradesh Sales Details

YARN VALUE
4000000
3000000
2000000
1000000
0

2/74CGMFHCR

2/120CGMBFHCR
YARN VALUE

Source : Marketing Department

2.7.12 Export Sales for month of June-2014

Table 2.7: Export Sales Details

PLACE

COUNT

KGS

YARN VALUE

DEPO

82SDHCR

2400

825000

Export

50CHY

19051.2

5010465.6

Export

2/80CM5HCR

11350

5,587,605.00

Export
Export

60C
60C

23.2
15976.8

6758.39
4654201.61

46401.2

15,259,030.60

Total
Source : Marketing Department

Figure 2.12: Export Sales Details

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YARN VALUE
18000000
16000000
15259030.6

14000000
12000000

YARN VALUE

10000000
8000000
6000000
5010465.6

4000000

5587605
4654201.61

2000000
0

825000
82SDHCR

50CHY 2/80CM5HCR 6758.39

60C

60C

Source : Marketing Department

2.8 Human Resource Department

The Human Resource Department helps managers recruit, select, train and develop for an
organization. HRM function are not confined to business establishment only. They are applicable
to non-business organizations too, such as education, health care, recreation etc.
2.8.1 Human Resource Department Chart
Figure 2.13: Human Resource Department Chart

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2.8.2 Function of Personnel Department

They recruitments the employees, man power
planning and performance revolutions.
Wages and salary administration.
2.8.3 Objective of Personnel Department

Discipline maintenance
Employees performance and evolution.
Traning and development and also motivate the employees.
Wages and Salary administration.
Improvement of Welfare activities.

2.8.4 Recruitment Process

The process is understood as the process of searching for and obtaining applicants for jobs from
among whom the right people can be selected. A format definition of recruitment is, the process
of finding and attracting capable applications for employment. The process begins when new
recruits are sought and ends when their applications are submitted. The result is a pool of
applications from which new employees are selected.
Internal Recruitment
The employees of the company make the recruitment in the company internally. They would be
appointed by the recommendations of the employee and they can continue if they work
efficiently.
External Recruitment
26

The recruitment have been made by the following process:

The company will give the advertisments on the leading newspapers.
The person would apply for the job and the eligible candidates are called for
the interview.
Based on their abilities the right candidates are selected. Normally the
process has been followed for the selection of the Managers and Clerical
Workers.
2.8.5 Campus Interviews
These have been conducted for the post of supervisors and Fitters from the ITIs and
Polytechnics. The right candidates from the Final year have been selected and given the training
for the period of 6 months.
2.8.6 Job Classification
The job has been classified for both the male and female workers. The male workers are
appointed in the heavy jobs such as Blow Room. Carding ,Comber, Drawing and the female
workers are appointed in Spinning, Doubling and Conner etc. The female workers are working in
both day and evening shifts.
2.8.7 Shift Time
First Shift
Second Shift
Third Shift

- 8.00 A.M - 4.00 P.M

- 4.00 P.M - 12.00 P.M
- 12.00 P.M - 8.00 P.M

The weekly leave is given for the workers.The shift changes during every weekly leave.
The government holidays and local holidays are also given for the workers. In order to reduce
the nightshift the time have been increase for both day and evening shift workers.
2.8.8 Qualification for Recruitment
The qualification of the employee plays main role in the process of recruitment and have been
said that the different posts would have different qualification as the necessary one. They are
given as follows:
Table 2.8: Qualiication for Recruitmnt

Sl.No

Post

Qualification

Department

Spining Master

Diploma in Textiles

Production

Electrician

E.E.E

Electronics

27

Maintenance Master

Dipolma in maintenance Maintenance

4
5
6

Fitter
Chemist
Clerk

ITI
B.Sc,Chemistry
Any Degree

Fitter
Mercerizing
Office & Department

7
8
9

EDP Operator
Worker (Gents)
Worker(Ladies)

B.Sc,computer science
10th std
8th std

EDP Room
All department
All departments

Source : Human Resource Department

2.8.9 Gratuity
The gratuity amount is collected from the 15 days salary of the permanent. It may be
calculated by the following formulae.
Basic salary+DA*15*No of Years of service
2.8.10 Provident Fund
The fund is generally collected from all the employees monthly salary in order to provide them
pension after their period of working upto the life of the employee.The contribution of the
employee and employer are given as follow.These facilities are also available only to the
employees whose salary is less than Rs.6,500/ Employees Contribution
Management Contribution

_ 12% of monthly salary

- 12% of monthly salary

The following percentage is deducted from the employees salary are displayed as
follows:
Administrative Revenue Charges - 1.1% of the employees salary
EDLI charges
- 0.5% of the employees salary
EDLI Administrative charges
- 0.01% of the employees salary
2.8.11 Leave with Wages
According to the Factories Act, the worker is eligible for leave with wages when he have
worked satisfactorily for the period of 240 days a year. The number of leave granted for
employee is given as follows:
3 days
1 day
15 days

cash with leave (For permanent workers)

For Temporary workers
Privilage Leave
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These are the duties done by the welfare officer for the workers.
2.8.12 Motivation
The motivation is necessaary for every worker if he wanted to do more work. Hence, it covers
various aspects, which would motivate the employee and will results in the increased in
production.
2.8.13 Performance Appraisal
The worker who possessing the 100% of attendance will receive the gift from the company on
the occasion of Founders Day Celebration (March 22). The workers are encouraged well in order
to increase the production and to reduce the wastes. The regular meeting for the technical staff is
conduted every day and the previous days production have to be taken into account and
discussed.
2.8.14 Training
The training is necessary for the employees. The employees without the proper training will
cause adverse defect to the production. Hence, the training has been given to the employee for
the period of 3 months. In the period, the employee have to pass on to all the department and the
supervisor will decide to which department he is suitable to work and he will be appointed inside
the company as staff.
If he has not done the training during the period successfully, it will results in the
disqualification of the selection of the employee.
2.8.15 Safety Measures
The measure are necessary for the employees and it will be useful to them to do the work with
safety and it would be good for their health.The employees are given training to put off the fire.
They are also trained that how to use the Fire Extinguisher during the necessary times.
The cloveare provied for the employees who are working at the chemical section
(Mercerzing)The mask is provided for the employees who are working at the section regarding
the cotton handling and mixing etc.The cap have also been provied in order to protect the hair
and head of the employees who are working at coming and spinning sections.
2.8.16 Transport Facilities

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The transport facility is available for the workers who are near by villages and two vans are
operated for the day shift and also for the night shift. The reasonable rate is collected from the
workers for the means of transport.
2.8.17 Trade Union
The management, according to his good conduct has selected the TVS Trade Union functions
inside the company and the Leader. The membership fee is collected from every employee
Rs.10/-per month
2.8.18 Retirement
The worker will retire from the service after the completion of 30 year of service or at the aged
58 which ever comes first. These rules will not be applicable to the employees who had joined
before 1995.
2.8.19 Specialty
The specialty of the employees who working in this organization is all the employees are
specialized in double jobs. Hence the work did not stop if any employee goes on leave.
2.8.20 Salary
The salary is payable at every month to the workers and it would fully depend upon the
productivity made by the workers.
The salary pay dates are given as follows:
Office Staff
Fitter Watchman
Technical Staff

Last working day of every month

Second working day of every month
7th of every month

According to the Payment of Wages Act, the companies functioning with less than 1000
workers have to pay the wages to the workers within the 7 th day of every month. In the other
cases, the salary payable date is 10th of every month.
2.8.21 Salary Rate
The salary payable to all the staff who are working in the factory are displayed as follows:
Officers

Rs. 10,000/- and above per month

(Based upon the Experience & Knowledge)

Office Staff

Rs. 5000/- to Rs. 7000/- per month

(Based upon the Experience & Knowledge)
30

 Workers

Piece rate wages Rs. 5,000/- per month

2.8.22 Uniform
The Uniform are made compulsory for the permanent employees who are working in the
organization. The two sets of uniform are given to the workers in the month of July every year.
The various uniform offered to workers are given as follows:
Maintenance
Worker / Operator
Office Staff

Full Pant / Half Shirt

Half Trouser white banyan
Gray Uniform

2.8.23 Employees List

The total strength is 858 workers. As follows: (including watchman)
I.
II.
III.

Propationaries
Female workers
Technical workers

253
569
36

Office Staffs (including technical and administration staffs) - 41

2.9 Finance Department

2.9.1 Finance Department Chart
The chart simply depicts the flow of control in the finance department from top to bottom as
follows:
Figure 2.14: Finance department

31

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2.9.2 Function of finance department

Preparing the purchase bills.

They arrange for funds transferred to mills.
Preparation of statutory records.
Mobilisation of funds.
Allocation of funds.

2.9.3 Objective of finance department

Party payment are quickly presented.

To collect the amount from yarn sellers.
Preparation of Bills.
Collection of funds.

32

2.9.4 Concept of cost

Cost means The amount of expenditure incurred on, or attributable to given thing.
2.9.5 Component of total cost
Total cost includes:
Raw material
Convention cost
2.9.6 Convention cost
Convention cost mainly depend upon
Machine utilization
Spindle point production
2.9.7 Depreciation Account
Depreciation is the gradual and payment decrease in the value of an asset from any course.
Depreciation is calculated on the written down method. The deprecation A/C is prepare seal by
the mill.
2.9.8 Working Capital
It refers to the firms current on circulating assets Current Asset that are easily converted in to
cash with in an accounting year.

. SWOT-Analysis
Definition
The overall evaluation of a companys strengths, weaknesses, opportunities, and threats is called
SWOT analysis.
Internal Environment Analysis (Strength/Weakness-Analysis)
33

It is one thing to discern attractive opportunities and another to be able to take advantage of these
opportunities. Each business needs to evaluate its internal strengths and weaknesses. It can do so
by using a form like the are shown in the marketing Memo: checklist for performing
strengths/weaknesses analysis.
External Environment Analysis (Opportunity & Threat Analysis)
In general a business unit has to monitor key macro environment forces (demographic
economic, technological, politcal and social-culture) and significant micro environment actors
(customers, competitors,distributors, suppliers) that affect its ability to earn profits. The business
unit should set up a marketing intelligence system to track trends and important developments.
For each trend or development, management needs to identify the associated opportunities and
treats.

3.1 Strength
1.Our own transportation
Based on the sales advice issued by our sales department we are dispatching the yarn
to the parties. The cone bags are dispatched to parties on two basis namely prepaid basis and to
pay basis. If we dispatch the yarn through our own the transportation cost comparatively cheaper
and we are able to deliver the goods to the parties within the time. Hence we are able to get good
market for out product.

2.To pay basis

If we dispatch our goods on to pay basis then the cost of transport was borne by the
parties. If we are dispatch the yarn through our own transport the transportation cost will be very
cheaper because the lorry freight was fixed based on market demand. As we are having fixed rate
the freight paid by the parties was comparatively lower than the market rate.
3.Proximity Market
We are regularly marketing our yarn in Mumbai, Kolkata, Delhi, Uttar Pradesh
Andhra Pradesh and Karnataka etc. As our mill located on the National Highway we are very
easily able to move our products to the market area. Through prompt supply we are able to
satisfy the customers and get better selling prospects to our products.
4.Situated in high ways (National Highway)
34

Easy to transport.
Easy to Export.
At delivery in correct time.
Our own strength is 858 workers.
Co-operation of the workers.

3.2 Weakness
1. Part Loads
Due to the requirement of dealer sometimes we are despatching part loads to our
customer. For sending the part loads the transportation cost in higher. White making sales the
dealer includes the transport cost in the sales hence the market for the our yarn is lower.
2. Damages to yarn bags - We are despatching the yarn bags through Lorry Transport.
During transportation due to poor handling the materials get damaged. Hence the parties raise
claim for the damages which ultimately affect our profit.
3. Packing cost - To avoid any possible damages to our yarn during transportation we are
using high quality materials for packing which ultimately increase our selling cost. These
expenses sometime affects our market.
4. The mill has to pay more taxes
5. The products manufacture are costing comparing to small scale industries.

3.3 Opportunities
Transportation
As our mills situated on the National Highway, our place are very nearer to the
Tuticorine Port, we are very easily move our product to all over India and able to export our
products to foreign countries.

3.4 Threads
1. Climatic condition
The cotton and the yarn are sensitive items and they always have the characteristic
to change their shape according to the weather conditions. Hence, the climatic condition is a
major thread to our product.
2. Market Fluctuation

35

The yarn and the cotton market are always on fluctuation condition. This will affect our
production and market condition.
3.The absenteeism makes the machinery idle.
Table 3.1: SWOT Analysis

Strength

Weakness

Opportunities

Threads

Ourown transport

Damages to yarn

Modernization

Climate condition

To pay basis

Packing cost

Export facility

Fluxion market

Proximity

Climate Condition

Trained Manpower

Production cost

Pallot packing

Sensitive market

Easy Accessible

4. Learning Outcomes
4.1 Managerial skills
Managerial skills are classified as technical, human and conceptual by Katz. For a
manager managing any activity, the actual work involved in the activity is technical skill. Ability
to communicate with other persons in the department or organizations and the ability to
36

understand their desires and persuade them to ones point of view are human skills. Conceptual
skills understand of how customers of the department or organization react as a group to various
activities.
Similarly a manager has to understand how suppliers to his department react as a group.
Here economic consequences, political consequences, and social consequences come into play
and a manager must be able to visualize all these likely outcomes in coming out with his
objectives, strategies and tactics.
There are three skills
Technical skills
Human skills
Conceptual skills
Technical skills
Technical skills are those abilities acquired through learning and practice. They are often job or
task specific; in other words, a particular skill set or proficiency required to perform a specific
job or task.
Human skills
Relating to other people is vital in order to be a good manager. Workers come in about every
temperament that can be imagined. It takes a manager with the right human skills to manage this
variety of workers effectively. Diversity in the workplace is commonplace.
Conceptual skills
Top level managers need conceptual skills that let them view the organization as a whole.
Conceptual skills are used in planning and dealing with ideas and abstractions. Supervisors need
technical skills to manage their area of specialty.

4.2 learning Experiences

Learned to manage time properly
Learned how to approach the customers
Enhanced my communication and convincing skills
How to interact the people
How to convince to buy a our product
37

 How to maintain the customer relationship

How to manage the work place
How to manage the employees

Summary of Suggestions & Conclusion

5.1 Suggestions
The company should give more emphasis to training that improve team
work and develop new skills.
All the customers are satisfied by the quality of yarns produced by the Sundaram
Textiles.

38

 The processing unit and the personnel department are situated in the Sundaram
Textiles. The remaining other departments like finance and marketing are situated
head office at Madurai.
The cotton and the yarn are sensitive items and they have the characteristics to
change their shape according to the weather condition.
Hence the climatic condition is a major problem to their products.
The yarn and the cotton market are always on fluctuation condition. This will affect
our production and market condition.

5.2 Conclusion
The mill is supplying yarn in the range of 60s count to 120s count to International and
Domestic customers. The mill strived to achieve the quality as Public limited company and the
company is a registered member of SEBI and the shares are not issued to the public.
The machines used are new technology Japan made machines. The modernization of new
machines uplift the mills. The mill is running in profit.At present, the mill is passing through
smooth way. It means the technical and financial positions are good. In this situation, if the mill
allowed to function, it can improve its productions.
At present financial position is good, and the labours are much co-optional with the
organization. This makes way for the success of Sundaram Textiles.

Bibliography
Book References
1. Aswathappa K and Shridhara Bhat K, Production Management, Himalaya Publishing
House, Revised Second Edition, 2008.
2. Seetharaman S and Venkateswara Prasad B, Human Resource Management, Scitech
Publications (INDIA) Pvt. Limited.

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3. Philip Kotler & kevin Lane Kellar 2007, Marketing Management 12 th Edition, Hall of
India Private Limited, New Delhi.

Websites
1. www.sundaramtextile.com
2. www.wikipedia.com

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