Internship Report New

Internship Report On Alleppey Co-operative Spinning Mills LTD, 2018
Contents
INTRODUCTION ..................................................................................................................... 2
SIGNIFICANCE OF THE STUDY....................................................................................... 4
RESEARCH METHODOLOGY........................................................................................... 4
SCOPE OF THE STUDY ...................................................................................................... 5
LIMITATIONS OF THE STUDY......................................................................................... 5
CHAPTERISATION ............................................................................................................. 6
INDUSTRY PROFILE .............................................................................................................. 6
WORLD SCENARIO OF TEXTILE INDUSTRY ............................................................... 8
CURRENT SCENARIO OF TEXTILE INDUSTRY IN INDIA ........................................ 11
COTTON TEXTILE INDUSTRY IN KERALA ................................................................ 14
COMPANY PROFILE ............................................................................................................ 16
ORGANISATION STRUCTURE ....................................................................................... 24
DEPARTMENT PROFILE ................................................................................................. 26
ACTIVITIES DONE ........................................................................................................... 68
SWOT ANALYSIS ................................................................................................................. 73
FINDINGS ............................................................................................................................... 77
CONCLUSION ........................................................................................................................ 78
SUGGESTIONS ...................................................................................................................... 79
Bibliography ............................................................................................................................ 84
Institute Of Management And Technology, Punnapra Page 1

INTRODUCTION
Spinning is an ancient textile art in which plant, animal or synthetic fibers are twisted
together to form yarn. For thousands of years, fiber was spun by hand using simple
tools, the spindle and distaff. Only in the High Middle Ages did the spinning wheel
increase the output of individual spinners, and mass-production only arose in the 18th
century with the beginnings of the Industrial Revolution. Hand-spinning remains a
popular handicraft.Spinning by hand has been existence for over 10,000 years, but the
spinning wheel did not become used widely until the middle ages. Hand spindles had
been the primary method of spinning for all thread and yarn production for over 9000
years, and in some parts of the world hand spinning is still a widely used method of
yarn production. In the most primitive type of spinning, tufts of animal hair or plant
fiber are rolled down the thigh with the hand, and additional tufts are added as needed
until the desired length of spun fiber is achieved. Later, the fiber is fastened to a stone
which is twirled round until the yarn is sufficiently twisted, whereupon it is wound upon
the stone and the process repeated over and over. The next method of spinning yarn is
with the spindle, a straight stick eight to twelve inches long on which the yarn is wound
after twisting. At first the stick had a cleft or split in the top in which the thread was
fixed. Later, a hook of bone was added to the upper end. The bunch of wool or plant
fibers is held in the left hand. With the right hand the fibers are drawn out several inches
and the end fastened securely in the slit or hook on the top of the spindle. A whirling
motion is given to the spindle on the thigh or any convenient part of the body. The
twisted yarn is then wound on to the upper part of the spindle. Another bunch of fibers
is drawn out, the spindle is given another twirl, and the yarn is wound on the spindle,
and so on. In medieval times, poor families had such a need ]for yarn to make their own
cloth and clothes that practically all girls and unmarried women would keep busy
spinning, and "spinster" became synonymous with an unmarried woman.
Most authors agree that the practice of spinning fibers to form thread and yarns has
been in existence for over 10,000 years.The spinning wheel, the tool most commonly
associated with the art of spinning, was not introduced to Europe until in the late Middle
Ages/early Renaissance. Thus, the drop spindle was the primary spinning tool used to
spin all the threads for clothing and fabrics from Egyptian mummy wrappings to

tapestries, and even the ropes and sails for ships, for almost 9000 years. The oldest
actual “tool As the first spinners were nomadic tribes from pre-agrarian societies, it is
unlikely that they would have carried their rocks from camp to camp, and would use
stones found at each new site for their spinning. A leader thread would be spun by
twisting the fibers between the fingers to a desired length, and then the resulting thread
would be tied around the rock. The rock could then be rotated to spin the fibers as they
are played out between the fingers. Spinning with rocks is still done in remote parts of
Asia among the nomadic tribes.
A hooked stick is another ancient “tool” used for spinning. Whereas the rock would be
used more like a drop spindle, a stick cut from the branches of a tree would be used to
spin the fibers by rolling the stick horizontally along the length of your thigh to put
twist into the fibers. The first sticks may have been straight, and were a natural
outgrowth of rolling the fiber along the length of their leg to twist the fibers. As with
the rock, the time and place of the origin of this spinning tool is unknown.
Medieval spinners often used a distaff, (a stick with a fork or ornate comb on the tip
used to hold long-staple fibers while spinning) to hold their fibers while they were
spinning with a spindle. This stick was usually held under the left arm according to
most pictures – meaning that the spinners would have had to set their spindles in motion
with their right hand, and feeding their fiber with the right hand. (ACSM
SUSTAINABILITY REPORT, 2017)
OBJECTIVES OF THE STUDY
The underlying objectives were set for conducting this organization study.
 To study about overall management of the organization.

 To analyses various functions performed by the various departments in the
organization.
 To secure practical knowledge regarding the HR aspects involved in the
organization.
 To study the activities of the departments in the organization

 To familiarize with business organization to relate theory with practice.

 To understand how key processes are carried out in an organization.
SIGNIFICANCE OF THE STUDY
For the partial fulfillment of the Master of Business Administration from Kerala
University, an internship has conducted during a month. This study helped me to gain
knowledge about the textile industry, especially the process involved in yarn
production. The general objective of this program was to gain practical knowledge on
the overall functioning of the various departments involved in Alleppey Co-Operative
Spinning Mills Ltd, Kareelakulangara.
This study helped me to gain more information about the present conditions prevailing
in the textile sector and the constraints which are faced by the mills at present in Kerala.
To know the fact that the textile industry is the single most export earner (about 30%)
of gross export earnings for India and it is the second most employment provider after
agriculture.
RESEARCH METHODOLOGY
The keys in creating a useful system are selectively in the collection of data. The data
available in the organization are mainly two types: -
 Primary data
 Secondary data
Secondary data can be defined as the data collected by someone else for the purpose
other than solving problem. They are of two types:-
 Internal sources
 External sources
Internal sources includes accounting, sales force reports, and external sources include
information from published records, original research etc. (KOTHARI, 2014)
Here it is collected from:-

 Company document
 Company journals.
 Company records.
 Documents from SITRA.
 Other data from internet.
SCOPE OF THE STUDY
 Internship can be carried out mainly with an object of gaining practical

experience in organization. These allowed to me an opportunity to interact and
to visit the production unit in ACSM.
 Thus, it helped to gain an industrial insight in the field of production and the
problems, which are faced by the Textile industry as a whole.
 It provides a chance to see the practical constraints faced by the managers while
putting theory into practice. It helped to gain knowledge about the real life
situation faced by the managers in each stage of the work.
 It helped to know how they tactically solve any problem encountered by them.
This study enable to gather more information about the historical aspects
involved in textile industry and also to know about the present scenario which
leads to declining closing up of many textile industries in India especially
Kerala.
LIMITATIONS OF THE STUDY
 Top management was reluctant to disclose confidential matters related to the

company
 Due to lack of production technique knowledge, could not know more about
production side.
 Unable to cover some areas of the organization.
 There was a sufficient support from the officials and staff, but the company’s
tight work schedule prevented them from giving additional information.

CHAPTERISATION
Chapter 1: Introduction which includes objectives, significance, methodology, scope

and limitations.
Chapter 2: Industry Profile which gives an overall idea about the Textile Industry in
India and also the recent trends in the industry.
Chapter 3: Company Profile which includes the history, mission, and vision of
Alleppey Co-operative Spinning Mill, kareelakulangara and also provided about the
future group.
Chapter 4: Organizational Structure
Chapter 5: Department Profile which deals with the department profile of ACSM
and various activities carried out during the internship period.
Chapter 6: SWOT Analysis which includes the strength weakness opportunities and
threat faced by the company.
INDUSTRY PROFILE

The term textile is derived from the Latin word “Texere” means to weave. Textile
industry came into existence even before independence and occupied a very unique
position in the world itself due to its contribution made in the field of employment,
natural economy and exporting.In olden days, structure and functioning pattern of these
industries were extremely complex that it is mainly carried out with the help of hand
spinning machines in unorganized manner. However, as technology started to expand,
its application in textile industry changed its structure and resulting in a highly
sophisticated and mechanized mill sector or industry. Small-scale power loom sector
and an organized mill sector played a major role in the growth of the mill industry.
Cotton producing states in India are Punjab, Haryana, Gujarat, Maharashtra, Rajasthan
and Andhra Pradesh.Though India has the largest cotton production in the world
amounting to 9 million hectors (25% of the world), only 15% of world production is
taking place in the country, mainly due to the low yield per hectare prevailing in the
country.
The first mill in India came into existence due to attempt made by the Bowrea cotton
Mill in Kolkata by English enterprise but it did not worked well. Later in 1854 in
Bombay, C N Daver, a Paris business man established the first cotton mill in Bombay.
In India there are 1767 textile mills of which 192 are in the public sectors, 151 in the
co-operative sectors and 1424 in the private sector. During 1985-86 production of yarn
was 1454 million, which was raised up to 3005 million in the year 1997-98.ng in the
country.
In Kerala, there are 40 co-operative power looms, 170 private units concentrated in the
districts of Kannur, Ernakulum, Trissur and Trivandrum. Units which are held by the
Central and state public sector are units taken over by them when these private units
turned sick at different periods. Units in co-operative sectors are mostly newly installed
plants during various periods.
The Indian textile industry is passing through a great crisis recently, mainly because of
the changes in the world market. In the international market, whereas Pakistan, China,
Korea, Japan, Thailand, and other countries were able to increase their share, India’s
shares were declined. This slide got momentum with the currency in South East Asia.
Similarly, the off take yarn in the consuming countries has also gone down considerably

which eventually resulted in a 40% cut in the power loom cloth production and 25%
cut in mill cloth production. Corresponding fall in exports was about 20%. The de-
licensing policy of the government led to the establishment of many mills throughout
the country resulting in excess capacity building. The reasons for the present crisis can
be summarized as follows;
(1) The currency crisis in the South East Asian countries and consequent fall in
international prices for yarn and textiles.
(2) The production of cotton has not increased in relation to the capacity addition
in the industry.
(3) The policy of allowing export of cotton disregarding the requirement of
domestic industry. As a result, the price of the raw material shot up making
production uneconomical.
(4) It may also be mentioned that while the other countries are rapidly making their
industry more competitive by modernizing and restructuring, we lag behind on
this score also. China’s exports have increased by an overall 34.92% from the
last year as against India’s lowering exports.
A large number of power looms are closed due to the abnormal delay in getting
payments from buyers of fabrics. About 2.64 lakhs workers have been rendered jobless
in our country due to closure of textile mills. Nearly 1.05 lakhs from Gujarat, M.P,
Tamil Nadu, and West Bengal have reported unemployed in the range of 15000 &
30000 due to closure of textile industries. (ACSM SUSTAINABILITY REPORT,
2017)
GLOBAL SCENARIO OF TEXTILE INDUSTRY
The Textile & Clothing trade in the global market is fast changing with the scaling up
of uses of textiles in diverse areas. Asian countries including India play a dominant role
in the international trade of the global market. China has the major share in Textile &
Clothing trade in the International market and both Bangladesh & Hong Kong have a
significant share. It is reported that Asian countries export most of Textile & Clothing
apparel to Europe, North America, and USA etc.

Asian countries are gaining in textile trade due to lower costs compared to African,
Europe & South American countries. As per the Global Textile & Apparel Industry:
vision 2015, World textile and apparel trade is expected to reach US$805bn by 2015
from US$650bn in 2010. At present few countries like Bangladesh, Thailand,
Cambodia, Sri Lanka, Pakistan contribute major share in Forex earnings of their
country from Textile and Clothing trade, though their share in the world market is not
very significant.
Asian countries are facing challenges in the global market due to volatility in price,
rising input cost, energy crisis and lack of marketing initiative / exposure etc. In
addition, initiatives need to be made in the area of Research and Development, skill
development and Capacity building of the industry as a whole. Industry has to be in
demand driven mode.
It is also noticed that tariff rate in few Asian countries are extremely high, which
became a barrier to scale up the share in international market. At present a few Asian
countries are enjoying a special status in the global market as per WTO guidelines and
able to retain share till date. But this may not last long because of growing competition
emerging from other countries. Government of the concerned countries also facilitated
the sector to grow by framing policy and keeping provision of incentives/ concessions
to encourage for international marketing. However, India is not enjoying such status
and over the years.
India’s contribution from textile and clothing trade in country’s total Forex earning
shows a declining trend in the last decade. Government of India has made a good
number of initiatives for capacity building, skill development, product diversification
and enhancing global share.
Important Statistics and Data on International Trade:-

Country Textile (%)

Bangladesh 25%
Iran 120%
Turkey 24.50%
Malaysia 9%
Indonesia 9.20%
Pakistan 35%
Vietnam 9.70%
Cambodia 5.50%
China 9.50%
India 29.60%
Sri Lanka 3.60%
Thailand 7.90%
(STATISTICS AND DATA ON INTERNATIONAL TRADE, 2000)

Leading Manufactures In Textile Industry:-

Most of the production happens in Asian countries. China and India are the leading
manufactures in textile. Textile Industry has different sectors like jute, yarn, apparel,
clothing and garments. Each country has its specification in respective sectors. Coming
to India, India is large manufacture of yarn. China for silk yarn and so on. Below table
gives information regarding leading exporters and market shares in world economy.
Country Million US$ Share

USA 4268.45 20.38
UK 1697.35 8.11
UAE 1632.76 7.75
Germany 1607.33 7.65
France 934.41 4.46
Italy 782.13 3.74
Spain 642.54 3.08
Netherlands 537.77 2.57
Bangladesh 508.85 2.83
China 440.51 2.10
TOTAL (Top 10) 13046.11 62.30
World 20939.80
Source:SITRA Magazine
CURRENT SCENARIO OF TEXTILE INDUSTRY IN INDIA

Indian textile enjoys a rich heritage and the origin of textiles in India traces back to
the Indus valley Civilization where people used homespun cotton for weaving their
cloths. Rig Veda, the earliest of the Veda contains the literary information about
textiles and it refers to weaving. Ramayana and Mahabharata, the eminent Indian epics
depict the existence of wide variety of fabrics in ancient India. These epics refer both
to rich and stylized garment worn by the aristocrats and ordinary simple cloths worn
by the common people. The contemporary Indian textile not only reflects the splendid
past but also cater to the requirements of the modern times.
India is the second largest producer of textiles and garments in the world. The Indian
textiles and apparel industry is expected to grow to a size of US$223bn by 2021,
according to a report by Techno park Advisors. This industry accounts for almost 24%
of the worlds’spindle capacity and 8% of global rotor capacity. Abundant availability
of raw materials such as cotton, wool, silk and jute as well as skilled workforce have
made the country a sourcing hub.
The textiles industry has made a major contribution to the national economy in terms
of direct and indirect employment generation and net foreign exchange earnings.
The sector contributes about 14 per cent to industrial production, 4 per cent to the
gross domestic product (GDP) and 27% to the country’s foreign exchange inflows. It
provides direct employment to over 45 million people. The textiles sector is the second
largest provider of employment after agriculture. Thus, growth and all round
development of the industry has a direct bearing on the improvement the India’s
economy.
 GROWTH
The Indian textiles industry is set for strong growth, buoyed by strong domestic
consumption as well as export demand. The most significant change in the Indian
textile industry has been advent of man-made fibers (MMF).India has successfully
placed its innovation range of MMF textiles in almost all the countries across the
globe.

 MMF production recorded an increase of 10% and filament yarn production

due 6% in the month of February.2014. MMF production increased by about
4% during the period of April 2013- February 2014.
 During April 2013- February.2014cotton yarn production increased by about
10%.Blended and 100% non-cotton yarn production increased by 6%
duringFebruary.2014 and by 8% during the period of April 2013-
February.2014.
 Cloth production by mill sector registered a growth of 9% in the month of
February.2014& of 6% during April 2013- February.2014.
 India’s textiles sector is one of the mainstays of the national economy. It is also
one of the largest contributing sectors of India’s exports contributing 11% to the
country’s total exports basket.
 The textiles industry is labor intensive and is one of the largest employers. The
industry realized export earnings worth US$41.51bn in 2013-2014.
 The textile industry has two broad segments, namely handloom, handicrafts,
sericulture, power looms in the unorganized sector and spinning, apparel,
garmenting, made ups in the organized sector.
The Indian textile industry is extremely varied, with a hand-spun & hand woven at one
end of the spectrum, and the capital-intensive sophisticated mill sector at the other. The
decentralized power looms or hosiery and knitting sector form the largest section of the
Textile Sector. The close linkage of the industry to agriculture and the ancient culture,
the traditions of the country make the Indian textiles sector unique in comparison to the
textile industry of other countries. This also provides the industry with the capacity to
produce a variety of product suitable to the different market segments, both within and
outside the country.
 GOVERNMENT INITIATIVES.
The Indian government has come up with a number of export promotion policies for
the textiles sector. It has also allowed 100% FDI in the Indian textile sector under the
automatic route.

COTTON TEXTILE INDUSTRY IN KERALA
As in the country as a whole, in Kerala too it was cotton mill industry, which pioneered
the industrialized of the state today it is one among the most important medium and
large scale industries in the state. A large number of people get direct employment in
the mills and on even large number get undirected employment.
Textile mill of Kerala now operate in a hazardous situation most of privately owned
mill are closed down resulting in large-scale unemployment. Some of the mill was taken
over by the Textile Corporation of Kerala Government and National Textile
Corporation. There taken over mill made huge losses within about thirty different cotton
mills. The workers complained that for a long period, then have been no revision in this
wage structures. The workers themselves acknowledged the facts that then in no
possibility of establishing new textile mills. In Kerala most of the long staple cotton
growing areas went to other states. Although much headway has been made to improve
the production of raw cotton, its supply has always fallen short of the demand. Conseq
labor strikes are common in the industrial sector but cotton textile industry suffers a lot
due to frequent strikes by a labor force gently, much of the long staple cotton
requirements are met by resorting to imports. In Kerala Most of the textile mills are old
with obsolete machinery. This results in low productivity and inferior quality. In the
developed countries, the textile machinery installed even 10-15 years ago has become
out dated and obsolete, whereas in Kerala about 60-75% machinery is 25-30 years old
it affect overall efficiency of Kerala cotton textile industry. (ORGANISATIONAL
PROFILE, 2017)

PROCESS FLOW CHART OF TEXTILE INDUSTRY
Raw Material
Bale Borah
Mill
Spinning Mill Composite Mill
Yarn
Hand Loom Power Loom
Knitting
Knitted Cloth
Market

COMPANY PROFILE
Alleppey Co-operative Spinning Mills registered on July 21, 1981 with registration
number D1/7934/81 commissioned on October 31, 1999 with a capacity of 6000
spindles. The Government acquired 7.9 hectors i.e., 19.5 acres of land in Pathiyoor
village, Kayamkulam in Alleppey District with an estimated value of 26.9 lakhs.
All India Federation of cooperative Spinning Mill Ltd Bombay set up this mill. The
total estimated cost requirement for the mill was 1136 lakhs & functions as per the
SITRA (South Indian Textile Research Association) standard.
The initial membership of the society was 34 members and registered as a public Ltd
company in the cooperative sector& registered under Kerala Cooperative Societies Act
1969. The Handloom Director, Managing Director of Tex fed, General Manager of
mill& Finance manager.
At present in Alleppey Co-operative Spinning Mills, there are 22 machines. The

capacity of the machine is 1008spindles, which make up 22176 spindles.
Functioning process of the mill is carried on shift basis:-
Work shift Time
First shift 7am – 3pm
Second shift 3pm – 11 pm
Third shift 11pm – 7 am
Source:company records
Women were allowed to take 2 days leave in week & in the case of men, they are
allowed to take 1-day leave in a week. Both of them are given separate rest rooms &
canteen.

Facilities are also provided in the mill itself with cheap rate. And other benefit which
the workers enjoyed inside the mill are provident fund, ESI, night allowance etc. Raw
materials being used are cotton taken from the flower& processed to convert it to yarn.
Raw materials are purchased mainly from Andhra Pradesh, Tamil Nadu, and
Maharashtra etc. the quality of raw material & those of yarn is based upon SITRA
(South India Textile Research Association) standard. Yarn produced here is of different
verities based upon the count which is used to measure its quality such as 40’s, 44’s
64’s. Among this 64’s, possess the highest demand in the market. The product of ASCM
is marketed through Depot Marketing with the help of agents in Mumbai there are
Ramaninkal Nandalal Brothers & Sathyam enterprise.
Production process of yarn yields wide varieties of wastes, which can be used for:
 Noil used to produce yarn by allowing it to reproducing process.

 Hard waste used in the workshops.
 Flat strips used as surgical cotton
 Pneumafils can be used again by allowing it reprocessing process.
In ASCM, the functional norms & rules are stated or expressed by the south Indian
department Research Association, Coimbatore being followed in the mill. The norms
for staffs & non- productive operatives employed in different department of ACSM
implemented.
The First Board meeting was conducted on 28 th NOV.1982 the following persons were
presented.
 Sri. Thachady Prabhakaran (President)

 Sri. K.M. Abdul Lathif
 Sri. K.S. Vasudeva sarma
 Sri. N. Krishna kumar
 Sri. Thundathil kunju Krishna pillai
 Sri. K. Abdul salam
 Sri. K. Narayan
 Sri. C.K. Vasu
 Sri. M.K. Purushothama Das

 Sri. A.C. Mathew

 Sri. V.M. Abdul Khader
After years, in the year 1999, the Mills started its commercial production by the strong
leadership of Sri. G Sudhakaran, then MLA and the present Minister of Kerala for Public.
Works Department and the following persons were in the Board as Directors. The trial run
inaugurated by Smt. Susheela Gopalan (late), then Hon'ble Minister for Industries, Govt of
Kerala Initially the Mills started with 6048 spindles to produce coarser counts like 40 Combed
counts.
 Sri K.K. Chellapan (Director)

 Sri S. Govinda kurup, Ex MLA (Director)
 Sri V.S. Moni (Director)
 Sri M.A. Aliyar (Director)
 Sri Adv. B. Rajendran (Director)
In the year 2010 the Govt. of Kerala availed a Hank yarn project – a project to cater the
requirements of our Hank yarn to the traditional sector of Hand looms with a reasonable price.
In the same year the mills increased its capacity to 12096 spindles with new state of art
technology Machines.
In the year 2015, the Government of Kerala considered the Mills for Rehabilitation,
Modernisation and Expansion of Alleppey Co-operative Spinning Mills with NCDC assistance,
by a total cost of 33.9426 crores. The detailed Project of 33.9426 crores was approved by the
Govt. of Kerala and availed 22.8199 crores. The project is going on and new state of art
technology machines were erected and we will be able to cater good quality yarn after the
completion of the Project. The Mills continuing its project implementation under the strong and
intellectual management of Sri.M.A.Aliar , Hon'ble Chairman and P.S.Sreekumar,
General Manager/CEO .The present Director Board members are
 Sri. K.Sudheer, Director of Handlooms and Textile
 Sri. A.Ajith Kumar, Deputy Secretary, Finance Department, Govt. of Kerala.
 Sri. K. Sunil Kumar, Deputy Secretary, Industries Department, Govt. of Kerala.
 Sri. M.K.Salim, Managing Director, TEXFED.

 During 2015 the Mills got ISO 9001:2008 Certification and the Alleppey Co-
operative Spinning Mills was the one and only Spinning Mills under Govt. of
Kerala got this Certificate of Quality Management System.
 During 2017, we transitioned the ISO 9001:2008 Certificate to ISO 9001:2015

Certificate which is the latest form of ISO Certification. Here also we had shown
our dedicated team work.
 Now, the Mills having 300 Employees and producing a wide range of Cotton
Yarn of Carded and Combed counts from 30s to 100s Auto coned yarn in Cone
and Hank form according to the requirement of Market.
 We are all thinking for improving the performance of the Mills day by day and
expecting that we can cross all constraints because all employees of the
Alleppey Co- Operative Spinning Mills are positive minded due to the positive
approach of approved Trade Union Leaders.
VISION AND MISSION OF ALLEPPEY CO-OPERATIVE SPINNING MILLS
To produce the highest quality fine and super fine count cotton yarn in the world and
to provide the best in customer service in the industry.
A) Vision towards public:
Ginning of cotton, spinning of yarn from cotton exported to domestic markets.
B) Vision towards quality:-
Provide quality cotton yarn at a competitive rate to ensure customer

satisfaction.
C) Vision towards employees:-
Provision of continuous employment and welfare to the employees attached

with ACSM.

ACSM is committed to operating a successful business by developing, manufacturing

and supporting quality yarn products of the world textile industry.it can be achieved by;
 Developing long term relationship with our customers and suppliers.

 Providing superior quality products at competitive prices.
 Exceeding industry standard with exceptional customer and technical service.
 Maintaining our competitive position through leading edge technology
 Providing a safe, fulfilling and rewarding work environment for our employees
 Serving supporting the communities in which we operate.
MISSION
Mission is the basic constituent of the company it does not change with the time rather
all the operation of the company are for the fulfillment of the mission. It is the
contribution of the company to the society.
The mission of The Alleppey Co-operative Spinning Mills LTD is to improve the
quality of the product as well as to develop and manufacture the product according to
the demand in the market.
CORE VALUES OF FUTURE GROUP
 Indianness :- confident in ourselves

 Leadership :- to be a leader, both in though and business
 Respect & Humility: - to respect every individual and be in our conduct.
 Introspection :- leading to purposeful thinking
 Openness: - to be open and receptive to new ideas, knowledge and information.
 Valuing and Nurturing relationship: - to build long term relationships.
 Simplicity & positivity: - simplicity and positivity in our thought, business and
action.
 Adaptability: - to be flexible and adaptable, to meet challenges.
 Flow :- to respect and understand the universal laws of nature

OBJECTIVES OF THE COMPANY
 To supply cotton yarn to members

 To promote industrial development in virtual areas.
 To provide gainful employment to virtual areas.
 To safeguard the weaker section from the exploitation of large sellers.
GOALS OF THE COMPANY
 To produce at cheaper cost

 Avoiding wastage
 Attaining maximum benefit.
PRINCIPLES OF ACSM
The principles of ACSM have kept them to themselves and to their commitment to treat
others in ways that are consistent with those values . Having stood the test of time ,
these principles will continue, keeping them free to move quickly and plan for the
future.
 Quality
 Responsibility
 Efficiency
 Freedom
 Quality
The consumer is their boss, quality is their work and value for the money is the
goal.
 Responsibility
As individuals, they demand total responsibility from ourselves; as Associate,

they support the responsibilities of others.

 Efficiency
They use resources to the full, waste nothing and do only what they can do best.
 Freedom
They provide freedom to shape their own future, they need profit to remain free.
Product Profile
 YARN
Yarn consists of strands of materials twisted together. Each strand is made up of fibers,
all shorter than the piece of yarn that the form. These short fibers are spun into longer
filaments to make the yarn.
The characteristic of spun yarn depend on the amount of twist given to the fibers during
spinning is the process of creating yarn from various raw materials. The characteristics
of yarn also depend on the materials used, fiber length, alignment, and quantity of fiber
used.
A fairy high degree of twist produce strong yarn a low degree of twist produce softer,
mere lustrous yarn and a very tight twist produces crepe yarn. Their number of parts
also classifies yarn. A single yarn is made from a group of filament fibers twisted
together.
Ply yarn are made by twisting two or more single yarn. Cord yarns made by twisting
together two or more ply yarn.
Earlier spinning or air texturizing process manufactures yarn. Yarn manufacturing was
one of the very first processes that were industrialized. Yarn can be made from any
number of natural or synthetic fibers. These natural fibers come from plants,
animals and minerals. Synthetic fibers have strength, artificial luster and fire retardant.
Very 50% of spun yarn is made from cotton. Textured crimped or bulked yarn

comprised one half of the total spun. Textured yarn has higher volume due to physical,
chemical or het treatments. Crimped yarn is made of thermoplastic fibers of deformed
shape. Bulked yarn is formed from fibers that are inherently bulky and cannot be closely
packed. (TEXTILE INDUSTRY, 2017)
HISTORY OF YARN
Yarn is used to make textiles using a variety of process including weaving, felting,
natural fiber-cotton, silk, wool represent major fibers available to ancient civilization,
although the other fibrous materials may also have been used especially the best fibers
from Hemp, jute and sisal.
The cotton plant is indigenous to India, Egypt, and the warmer regions of American. In
these regions, the fiber was first used to make textiles. Cotton did not achieve
commercial importance in Europe until after the colonization of the new world.
Silk culture remained especially of Chinese from its beginning (12600 be) until the 6th
century A.D, when the worms were first raised in the Byzantine Empire.
In 1891, the first synthetic fiber rayon developed and also in 1939 its successors Nylon
and the various forms of polyester used. Most synthetics are made by firing a thick
solution of polymerized chemical through “spinneret nozzles” and textile industry
radically. Its development has reduced world demand for natural fibers. Until about
1300, yarn has spun on the spindle and wheel. Spindle is the earliest spinning tool and
spinning wheel, which first appeared in Europe. Spinning wheel is invented in India
between 500 and 1000 AD.
A number of developments during the 18th century further mechanized the spinning
process. In 1733, the flying shuttle invented by john key and followed by Hargreaves’s
spinning jenny is machine that operated a number of spindles at one time, that yarn
could be produced in appreciable volume, in 1769, Richard
Arkwright’s spinning frame and in1779 Samuel crumpets mule increased yarn
production to the part at which one worker could operate 1000 spindles at one time.

The ring frame was invented in1828 by an American John Thrown and is widely used
today. This system involves 100 spindles mounted vertically inside a metal ring.
ORGANISATION STRUCTURE

Organization structure is a hierarchy of people and its functions.it identifies each lob
and its function and where it reports to within the organizations. This structure is
developed to establish how an organization operates and assist an organization in
obtaining its goals to allow for future growth.
Organizational structure is the established pattern of relationship among various part

of the enterprise. The Alleppey Co-operative Spinning Mills Ltd, kareelakulangara has
a functional organizational structure. This structure is means of putting the specialist
into various positions throughout the organizations person to hold the functional
positions have only a limited power of command. The functional authority remains to
functional guidance of different departments.
The Alleppey Co-operative Spinning Mills Ltd the whole of the management and
direction of subordinates are divided according to the type of work involved. At the
higher levels, the structure’s by grouping all the work into major departments. All
related and similar works are done in the department under one executive Alleppey Co-
operative Spinning Mills Ltd have a well-defined functional structure. An organization
is mainly concerned with the allocation of duties and responsibilities and delegation of
authority like all other organization in ASCM, for proper functioning in the most
competitive environment, the function of management is dividing into 6 main sections
departments. They can be named as production department, Finance department,
Personnel department, Marketing department, Quality department, Maintenance
department, each department is headed by a manager who takes all the important
decisions concerning to that department. Manager`s report to the General Manager.
General Manager took decision under control of chairman and board of directors. The
organization setup is clearly depicted in the organization chart
ORGANIZATION STRUCTURE
Board of Directors

Chairman
General Manager
Finance HR Marketing Production Quality Maintenanc

Manager Manager Manager Manager Manager e Manager
Assistant Assistant Mill QAD

Accountant Supervisor
Manager Manager Manager Manager
Time Spinning QAD in Mechanical

Cashier Dealers Master
Keeper Charge Fitter
Deputy
Spinning Maintenan
Agents Investigators
Master ce Gang
Assistant
Spinning
Master
Supervisor
Jobber
Workers
DEPARTMENT PROFILE
Organization involves the dividing and grouping of work to be done in an enterprise.

Dividing the work naturally means the identification of individual activities, which

have to be undertaken for the attainment of the organizational objectives. But once the
various activities have been identified, it’s necessary to group them together on some
logical basis so that a term can be organized. Department literary means division of
business or dealing with specific area of activity. Every organization has their own
departments. For arranging departments things are going on a sequential order. In
departments are divided in to sub departments for reduce work load. For the
departments wise specification peoples are very easily to contact their own supervisor
or employer. “Department is the process of grouping activities into units for the purpose
of administration”.
An organization is a roof under which group of people work together as a team towards
common objectives. This is achieved when there is an organized effort from all
concerned. The organizational objectives are desired state of affairs, which an
organization attempts to realize. Realization of objectives sought through the
coordinated efforts of the people and resources, which constitutes an organization.
Resources include men, money, machines and material. Essence of management is
integration of various organizational departments. In every organization there are
mainly 5 departments such as production, marketing, personnel, finance and quality
management which coordinate the work and maintain a good relationship between
superiors and subordinates. It is dissipated mainly by the division which is made in the
organization for the proper functioning with at most care and attention towards the
achievements of goals
.
Like all other organization in ASCM, for proper functioning in the most competitive
environment, the function of management is dividing into 6 main sections/ departments.
They can be named as:-
 Production department
 Finance department
 HR department
 Marketing department
 Quality department
 Maintenance department
PRODUCTION DEPARTMENT
In modern business world, there are two types of organization with respect to
production unit. They are:-
 Service sector
 Product sector.
The organization, which is concerned with service sector, delivers the final products
which are intangible in nature, while the other organization is concerned with the
production of tangible goods which are got its own physical existence.
In ACSM, yarn is produced from the cotton which is extracted from seeds of cotton
plants which are purchased from various parts of our nation. Mainly the production
manager controls functions of this department
Functions involved in ACSM

 Fixation of standard upon which yarn must be produced which is
usually represented as Hank.
 Operation of purchase and storage of materials.
 Planning and controlling the operations.
 Repairs and maintenance of machinery.
 Inventory and Quality control.
Structure of Production Department
Production Manager

Mill Manager
Spinning Master
Deputy Spinning Master
Assistant Spinning
Master
Supervisor
Jobber
Workers
Production process of yarn is carried out by using various types of machines and each
process is carried out and considered as separate sections. They are:-
 Blow room
 Carding unit.
 Comber

 Simplex
 Ring frame.
 Cone winding
 Packaging unit.
Each unit consists of a wide variety of machines which are placed in this mill based
upon the sequence in which the process progress in producing yarn from various
varieties of cotton. In this mill layout being followed for production process is process
layout. Process layout means the alignment of similar machines and equipment which
performs similar functions is placed in plant locations which are linked to other
machines for completing the cycle of production.
PRODUCTION PROCESS
Making & Blending
Blow Room
Card Yarn Combed Yarn
Carding
Silver Lap Drawing
Ribbon Lap Lap Fomer
Combing
Drawing
Simplex
Reeling Spinning Winding
Bundling Double Winding Packing
Baling Market
HUMAN RESOURCE DEPARTMENT

Human resource management is the planning, organizing, directing and controlling of
procurement development, compensation, integration and separation of the human
resources to the end that individual organization and social objectives are

accomplished. It is a management function that helps managers to recruit, select,

straining and developments of members for an organization.
The HR department of ACSM is very dynamic. Employees are the biggest strength of
any organization and the HR department realizes this very well. This is very evident
from the way the HR department handles all its employees. They take utmost care to
select, train, motivate and retain all the employees. They have continuous
developmental programmes for all the employees. (Rao)
In ACSM, they provide three shifts for the employees. The first shift employees arrive
at 7.00 am in the morning and leave at 3.00 pm in the evening, while the second shift
of employees report at 3.00 pm and leave at 11.00 pm and the third shift starts at 11.00
pm to 7.00 am.
STRUCTURE OF HR DEPARTMENT
HR Manager
Assistant Manager
Time Keeper
As like any other organization this company is also giving more value to their
employees. The growth and development of the company depends directly to them. So
that they are using `associate concept` captures one of the fundamental beliefs in mars.
It describes the unique relationship the company and its associates holds, which is differ
from most other corporation. An associate is more attached to the company rather than
an employee. The Human resource department is also known as personnel department.

The human resource department handles many necessary functions of business.
FUNCTIONS OF HUMAN RESOURCE DEPARTMENT
 Performance appraisal
A performance appraisal is a systematic, general and periodic process that assesses an
individual employee's job performance and productivity in relation to certain pre-
established criteria and organizational objectives.
 Interviewing personnel
An interview consisting of a conversation between a job applicant and a representative
of an employer which is conducted to assess whether the applicant should be hired.
Interviews are one of the most popularly used devices for employee selection.
 Salary administration
A large measure of the Compensation team's expertise surrounds salary administration
or the review of salaries across the organization.
 Turnover management
In human resources context, turnover is the act of replacing an employee with a new
employee. An organization's turnover is measured as a percentage rate, which is
referred to as its turnover rate.
 Record keeping
The activity of organizing and storing all the documents, files, invoices, etc. relating to
a company's or organization's activities.
 Compensation
Compensation is the total cash and non-cash payments that you give to an employee in
exchange for the work they do for your business. Compensation is more than an
employee's regular paid wages. It also includes many other types of wages and benefits.
 Staff support
The people who work for an organization to keep it running and to support the people who are
involved in the organization's main business: support staff such as administrators, supervisors,
and electricians. Managers often depend heavily on their support staff. (DESTER, 2006)
HR STRATEGIES
Strategies are fair broad statement of intent to which show the type of action required
to achieve the underlying objectives of an organization. In every organization there are
set of objectives which help them to attain their common goal. HR strategies which are
being implemented in the mill help in the achievements of core corporate strategies...
The core corporate strategies are including:
 Offering best product
 Selling at best price
Strategies of offering best product
The strategy of offering best product requires best people. The HR strategies, which are
being implemented in this mill, are:-
 Employing the people with original & creative skills.
 Empowering the people.
 Retaining competent & innovative brains.
 Encouraging employees for risk taking
 Integrating performance analysis and developing them towards ultimate
goals of the mill.
Strategies of selling at best price

Selling the product at best price is possible by producing the product at low cost.
Producing high quality product at low cost is the best strategy in the market economy.
The HR strategies related to these aspects, which are implemented in the mill, are:-
 Employing the work force with creative skills in developing technology and
methods of minimizing cost.
 Trimming the workforce to cut the cost.

 Managing organizational exit policy strategically.

 Molding the employee attitude towards low risk taking & cost cutting.
HR PLANNING
Planning for human resources is more important than planning for any other resource
as demand for the latter depends upon the size and structure of the former. Management
of human resource hardly begins from human resource planning, it is the basis of all
sort of other functions in an organization. It can viewed as foreseeing the human
resource requirements of an organization and the supply of human resources, which
means skills, knowledge, values, ability, commitment, motivation etc.in addition to the
number of employees.
Human Resource Planning anticipates not only the required kind and number of
employees but also determines the action plan for all the functions of personnel
management. HR Planning implemented in the ACSM attempts to:
 Check the corporate plan

 It offsets uncertainty and change which enables the mill to acquire right person,
at right time in right place.
 It anticipates the cost of salary enhancement, better benefits and all the cost of
human resource facilitating the formulation of budgets in an organization.
 It helps to take steps to improve human resource contribution in the form of
increased productivity, sales, turnover etc.
 It leads the development of various sources of human resources to meet the
organizational needs.
 It helps in the control of all the functions, operations, contribution and cost of
human resources.
 It gives the data about the type of test to be used and interview qualifications,
intelligence, values etc.
 It also gives the data related to the physical facilities, working condition& the
volume of fringe benefits like canteen, company stores & first aid facilities.
TRAINING & DEVELOPMENT

Organization an individual should develop and progress simultaneously for their

survival and attainment of mutual goals. So every modern management where newer
technologies are being implemented should provide training to their employees to make
them aware about the present scenario of organization. Employee training is specialized
function and is one of the fundamental operative functions for human resource
management.
After an employee is selected, placed and introduced he/she must be provided with
training facilities. Training is not the act of increasing the knowledge skills of an
employee for doing a job it is also concerned with the rules and norms in the
organization with respect to work completion leave allotment, procedure in taking leave
and all such activities. Thus training is a program conducted to make aware of the
internal matters of an organization to an employee of an organization.
Jobs and organizational requirement are not statics, they are changed from time to time
in view of technological advancement and changes in awareness of the total quality and
productivity management organizational efficiency , productivity progress and
development to a greater extend depend upon training.
In ACSM, the program is given to their personnel to:-

 Make them aware of standards of performance.
 To meet the needs of emerging situations such as damage in any of the
machines.
 To make them further developed in their ISO 9000 series of standards.
Training program in Alleppey Co-operative Spinning Mills Ltd implemented in 3

levels:
 Plant level operations
 Middle level management personnel
 Higher level management
Plant level operation

It is given inclusive of fitters and cleaners include:-

 On the job training in their respective jobs.
 Quality awareness programs at the mill premises.
In this program the operative must be oriented towards the ISO 9000 Quality System
requirements and they must briefly be explained about their role in achieving this
objective. An ideal way to conduct this program is to exhibit the defective and non-
conformers in the intermediate stages of production in the lecture hall.
c) Training outside the mill premises.

For some sophisticated machines like the machines which are implemented in ACSM,
the mill technical personnel may have to undergo training at the site of the machinery
manufactures.
Middle Level Management Personnel
Middle level personnel must have skill to handle other fields of the organization. They
must have an intimate knowledge of the work and running of his department and an
intelligent awareness of the whole organization& its policies.
The areas which the personnel could be trained are as follows:-

 Productivity
 Process control
 Cost control
 Maintenance
 Defects & remedial action
 Energy conservation in spinning mill
 Modern technologies automatic machines in spinning.
Higher Level Management

The role of higher level management in achieving the certification for ISO 9000 quality
is more important than anybody else in the organization. The higher level management
personnel must be trained in the specific requirement of ISO 9000 Quality system. They
should be trained in:-

 Working knowledge and understanding in:-

 Organizational set up
 Objectives
 Probable defects and the causes
 Identification & channelization system
 Assessment of the performance.
 Methods of Scrutinizing
 Performance appraisal
 Documentation & its control
RECRUITMENT
Recruitment is the process to discover the sources of manpower to meet the
requirements of the staffing schedule and to employ effective measures for attracting
that manpower in adequate numbers to facilitate effective selection of an effective
workforce. In other words, recruitment is only one of the steps in the entire employment
process.
 Recruitment of non-technical staff

A test and interview will be conducted by the company on the basis of
performance candidates will be appointed.
 Recruitment of technical staff

Technical employees are selected by various sources and the company will be
selected on the basis of interview.
 Recruitment for manager post

They are selected by the company. Advertisement for manager post is published
in the newspaper. These applications are screened, tests and interviews are
conducted and qualified persons are appointed.
SOURCES OF RECRUITMENT AT ACSM

The main sources through which ACSM recruit its employees are as given under.
a) Consultancy Services
For top level management, employees are recruited through private consultants. They
are usually appointed as departmental managers.
b) Walk-ins
The busy organizations and the rapid changing companies do not find time to perform
various functions of recruitment. Therefore, they advise the potential candidates to
attend for an interview directly and without a prior application on a specified date, time
and at a specified place. Walk-ins are the main source through which ACSM recruits
its employees. People seeking job approach the HR department for employment.
Generally it is the entry level positions this sources is used.
c) Employee Referrals
This is the other main source followed by acsm through which employees are selected.
The present employees are well aware of the qualifications, attitudes, experience and
emotion of their friends and relatives. They are also aware of the job requirements and
organizational culture of their company. As such they can make preliminary judgment
regarding the match between the job and their friends or relatives. HR manager offer
various incentives / rewards including cash incentives to the current employees for
referring the best candidates.
SELECTION
The selection procedure is the system of functions and devices adopted in a given
company to ascertain whether the candidate’s specifications are matched with the job
specifications and requirements or not. The following is the selection procedure that the
HR department practices to hire its employees.
 Interview
For entry level jobs, the candidates are candidates are interviewed by a HR
person. They are asked a few basis questions about their education, previous
work experience if any, languages known etc. This is done to evaluate the
candidate’s ability to communicate freely and also other skills.
 Psychometric Tests
For higher and top level jobs, candidates are asked to answer a few questions
which basically test their sharpness, analytical ability, ability to handle stress,
presence of mind, etc. This is done as managers are required to work under
stress all the time and still maintain a cool head to make some vital decisions.
 Group Discussion
In campus recruitment students are involved in a group discussion, where they
will be given a topic on which the group has to deliberate, discuss and arrive at
a solution.
 Reference Letter
Recommendation and views of previous employer are given due weight in
selection process.
COMPENSATION
This function is concerned with determination of adequate and equitable remuneration
of the employees in the organization for their contribution to the organizational goals.
ACSM provides group insurance scheme and cash awards. Personnel policies are taken
by the personal manager after discussion with Managing Director and Chairman, these
policies are passed.
WAGE AND SALARY ADMINISTRATION

In ACSM, Personal Manager has a role of advisory nature. Actually the settlement of
wage/salary is done by accounts department. The trade union and management will
decide upon how much to pay for each employee and worker based on his or her work
performance.
ADMINISTRATION
Personal Manager is also having the authority on issues like public correspondence,
administration, office, telephone system etc.
HUMAN RESOURCE DEVELOPMENT SECTION

Human Resource is considered as the most vital asset of the organization.ACSM has
well defined employee power which helps the organization to perform well in the
market. Human Resource Department is headed by the manager, who organizes training
programmes for workers and managerial staff.
Main Functions of HRD Department

 Identifying training needs
 Arranging required training
 Maintaining the training needs.
Training program can be classified into

1) Induction program.
For newly recruited employees the aim of this program is to expose these personnel to
the organization structure, its objects, the type of production process and policy and
way in which the raw materials purchased online and how it is tested against SITRA
standard and thus making aware about these standard.
2) Orientation program
It is given for orienting the personnel towards the job to which they are entrusted.
Through this program the necessary skills that are needed to perform the job in an
efficient manner in the mill is imparted in them through this training method.
PERSONALITY DEVELOPMENT PROGRAME

Personality development programmes are conducted on a regular time period for the
development of both workers and managers.
PROMOTION
In Alleppey Co-operative Spinning Mills Ltd, the employees selected are mainly posted
as trainees of the mill for carrying out various productions related activities. After
completing certain period they are promoted to the next grade based upon certain
category. Later Government passed certain rules and norms for promoting any
employees from present level to the next level.
This declaration came into effect from 1-12-2001& followed in the mill to promote the
newly appointed as well as previously employed workers. The category employed for
this is as follows:-
 Trainees should have at least 60%attendance in total to the working days,
otherwise the trainees are not allowed to the work thereafter
 Paid trainees should be able to do the workload of the permanent worker after
6 months in the range of 50-75% & must have an attendance percentage of 90%
of the total working days then only he/she will be considered for the next grade.
 After 6 months training the paid trainees shall be able to do 75-100% of the
work load of permanent worker and he should have above 90% of attendance in
total, then only he/she will be considered for next grade level.
 After third training section training is given the paid trainees would be able to
do 75- 100% of the total workload of a permanent worker and he should be able
to keep his/her attendance above 90%. Then only he/she will be consider for
higher grades.
 After fourth section training the trainees will be given training to carry on the
full work load of a permanent worker and if she/he is able to do the work without
much strain and
He/she has developed in such a manner that he/she is maintaining his/her attendance
above 90%. Then only they will be considering for the next higher grade.
 Even though all the above conditions are satisfied, but he/she is not physically
fit to carry out the workload given then they will not be considered for the next
grade.
 If there exit any reasonable causes for the absence of trainees from the work
then he / she will be allowed to work in the same grade and then he/she will be
exposed to same rules and regulation which regulate the promotion system
existed in the mill.
Personnel department In ACSM gives importance in providing welfare measures to

their personnel. Welfare measures include statutory & non- statutory.
WELFARE MEASURES
Welfare measure include provident fund, gratuity, employee state insurance, bonus,
dearness allowance leave with wages, family pension fund, overtime allowances, night
allowances. These are mainly given in the form statutory & non-statutory measures.
Statutory welfare measures.
 Washing facility – sufficient number of water taps, wash basin and toilets.
 Sitting facilities – chairs and other furniture.
 First aid facilities.
 Rest rooms for workers are provided separately.
 Provident fund – it is governed as per the rules & norms specified by the
Government. Its contribution by the employees in this mill is 12% of basic
wages.
 Gratuity – it is governed as per the Companies Act 1956. The gratuity is paid to
employees as per the mill existing gratuity scheme or as per payment of gratuity
act whichever is beneficial to the employees.
 welfare
 Overtime allowances
 Shift allowances
 Leave
No: of leave/ holidays in calendar month
 Privilege leave-30 days
 Casual leave-15 days

 Sick Employee leave-15 days
 Holidays
 Paid holidays-10 days
 Bata
Non statutory Welfare measures.

 Accident benefits - if the employees are covered under ESI Scheme meet on
with any sort of accident on duty, he/she will get the claim amount from the ESI
contribution made by them and as well as from mill.
 Voluntary retirement – during voluntary retirement the employee is confined to

get a sum of money from the gratuity and an equivalent amount from the
organization.
 Festival advance - permanent workers will get certain sum amount based upon
the salary which he gets normally as festival advance. This amount is recovered
from the salary after the payment of advance in equal 5 installments.
 Health& Safety
In every organization for efficient working process requires the sound health of
the persons engaged therein. Unless the workers are physically and mentally
healthy they cannot perform their duties efficiently, properly and smoothly. The
environment of the factory where workers are working must be clean and free
from infection, insanitation, dust & fumes, artificial humidification,
overcrowding and other conditions injurious to the health of the workers
In ACSM the provisions regarding this aspect are followed to the best in order to
maintain both the health and mental condition of the worker in the mill. They are as
follows:-
 CLEANLINESS
With respects to these following measures are taken into consideration:-

 Accumulation of the dirt and refuse are removed daily from the floors of the
workrooms, passages.
 The floor of the work room is cleaned in every week using disinfectant.
 Machines are cleaned in every week.
 DISPOSAL OF WASHES AND EFFLUENTS

Effective arrangements are made in the mill for the treatment of washes and
effluents arising after the spinning process of cotton as approved under the
prescribed rules.
 DUST & FUMES

The dust which is arising out of the blow room due to the opening up of cotton is
likely to be injurious to the workers. For this purpose effective measures are taken
in the mill in order to avoid inhalation of the dust.
 OVERCROWDING
In order to prevent overcrowding the following measures are adopted in the mill
every worker is separated from each other in every section of the production
unit with at least 14.5 cubic meters. After considering these aspects in the mill the
workers are given instructions about the maximum number of workers to be
accommodated in each section.
 LIGHTING
Every part of the mill is provided with sufficient light and also effective measures
are taken to avoid the formation of glare and the formation of shadows which will
cause eye strain.
 DRINKING WATER
In the mill effective arrangements are made for the purpose of drinking such
as:-
 Water facilities are provided at convenient place which will be easily accessible
to everyone.

 Place where the drinking facilities are cleaned daily and also cleaned to ensure
hygiene.
 LATERNES & URINALS

Sufficient facilities are provided to both workers with sufficient lighting and
ventilation is provided in the mill. Adequate number of sweepers is maintained
in the mill for cleaning the latrines and urinals daily
Components of safety services provided in The Alleppey Co-operative

Spinning Mills Ltd, Kareelakulangara.
 Appointment of safety officer

In ACSM the safety officer’s functions are carried out mainly by the assistant
manager in the personnel department. The functions mainly performed are:-
 Analysing the causes of accidents
 Maintaining accidents statistics and records
 Purchasing safety equipments
 Elimination of hazards by doing:

 Job safety analyses
 Use of personal protective equipment’s
 Safeguarding machinery.
 Good lay outing and designing
 Periodical safety audit is done by preparing checklist of the points to be covered

and an inspection program is planned with them at regular intervals.
 Random spot check is done in each area or department.
WORKERS PARTICIPATION MANAGEMENT

ACSM encourages its workers to take part in the management of the company. The
workers are often consulted through their union while implementing welfare programs
of the company. In addition to this the workers are also included in some of the
committees, for taking management decision, which includes canteen management
committees, safety committees, shop floor committees, grievances committees
provident fund trust, tri party committees, complaint committee relating harassment to
women.
TRADE UNION
The commodity approach towards labor together with the management concentration
on their own goal of profit maximization by exploiting labor resulted in the formation
of trade unions to make the management aware of their responsibilities towards the
most important resources of the organization. Thus trade unions are formed to protect
the interest of the employees.
In ACSM there are two main groups of trade union functioning. They are:-
 Indian National Trade Union Congress [INTUC]

 Centre of Indian Trade Unions [CITU]
Objectives of Trade Unions in Alleppey Co-operative Spinning mill Ltd
 To place the mill under national ownership & control in a suitable form.
 To promote social, civic and political interest of the working class.
 To establish just industrial relations.
 To ensure participative management.
 To foster the spirit of solidarity, service, brotherhood, cooperation and
mutual help among the workers.
 To secure redresses of grievances, without stoppage of work, by means
of negotiation, conciliation and facilitating the arbitration and
adjudication
 To develop in the workers a sense of responsibilities towards industry
and the community.
 To raise the workers standard of efficiency and discipline.

CODE OF CONDUCT
The retail chain has evolved a code of conduct as given under. This code is applicable
to the board of directors and senior management employees (herein after referred to as
“specified person”) of future retail limited (formerly known as Bharti retail limited)
(“the company”). “Senior management” employees shall mean personnel of the
company who are members of its core management team excluding board of directors.
Normally, this would comprise all members of management one level below the
executive directors, including all functional heads. This code is also applicable to the
executive and non- executive directors to the extent of their role and responsibilities in
the organization. This code has to be complied with both in letter and spirit by specified
persons. Any violation/ suspected violation of the code have to be promptly
communicated to the compliance officer of the company which would be taken up in
the meetings of the audit committee/ board of directors. (futureretail/code-of-conduct,
n.d.)
 Honest, Integrity, Due Care and Diligence

Specified Persons of the Company shall conduct their activities, on behalf of the
Company, in the best interests of the Company with honest, integrity and
fairness. Due care and diligence shall be exercised by them in performing their
duties of office and powers attached to their office.
 Compliance with Laws, Rules and Regulations

Specified Persons of the Company are required to conduct their business and
affairs in full compliance with applicable laws, rules and regulations in letter
as well as spirit and shall encourage and promote such behaviour for
themselves, officers and employees across the organisation. Specified Persons
must comply with all applicable governmental laws, rules and regulations.
 Protection and Proper Use of Company’s Assets

Specified Persons must protect the Company’s assets and information and may
not use these for personal use, unless approved by the appropriate authority.
 Corporate Opportunities
Specified Persons may not exploit for their own personal gain opportunities that
are discovered through the use of Company’s property, information or position
unless such opportunity is disclosed to the Board of Directors / Committee of
Directors in writing and the Board / Committee of Directors declines to pursue
such opportunity.
 Competition and Fair Dealing

Specified Persons should not take unfair advantage of anyone through
manipulation, concealment, and misrepresentation of material facts or any other
unfair practices. Specified Persons should ensure dealings with stakeholders are
done in a fair manner. The Company will use its resources, knowledge and
expertise to its competitive advantage, but we will avoid undermining the
operation of free markets. We respect the rights of others to carry on their
business. We will also avoid putting undue pressure on customers in ways that
may reduce or remove their ability to choose between services of competitors.
We shall support the development of laws that promote, encourage or result in
fair competition.
 Insider Trading
Specified Persons shall not derive benefit or assist others to derive benefit by
giving advice from the access to and possession of any price sensitive
information, not in public domain. Specified Persons will comply with SEBI
(Prohibition of Insider Trading) Regulations, 1995 & the Code of Conduct of
Prevention of Insider Trading of the Company as updated or modified and as
may be applicable from time to time.
 Intellectual Property Rights

Intellectual Property Rights is an important area for the success of the Company.
Specified Persons should ensure that intellectual property rights of the
Company viz trademarks, trade name, copyrights, etc are duly protected through
registration of the same in the name of the Company with concerned statutory
authorities to prevent any misuse of the same by others.
 Confidentiality of Information
Specified Persons should ensure confidentiality of information they receive and
is disclosed if authorized by the Company or the person from whom the
information is provided or required by law.
 Health & Safety

The business of the Company shall be carried on in a congenial environment
whereby adequate health and adequate safety measures are taken in the
workplace of the employees. Specified Persons shall ensure that due
compliance of all laws and regulations pertaining to health and safety measures
are done on a continuous basis.
 Conflict of Interest
Specified Persons of the Company shall ensure that their personal interest
doesn’t conflict with the interests of the Company/ the group.
 Affirmation of Code
All Specified Persons shall affirm compliance with the code to the compliance
officer of the Company within 15 days from the date of closure of the each
financial year in the format specified from time to time. In the absence of receipt
of such affirmation, it will be deemed that the Specified Persons are in
compliance with the code and necessary reporting / disclosures in this regard
shall be made by the Company to ensure statutory and regulatory compliance.
 Periodic Review
This Code is subject to periodic review by the Audit Committee and the Board
of Directors.

FINANCIAL DEPARTMENT
Finance department is headed by Finance Manager and assisted by senior officer,
cashier and assistant manager. Finance department in ACSM is fully computerized and
all payments are made through computer computations. All the purchasing/ quotation
works are handled online.
In ACSM the marketing of yarn is done through Depot Marketing i.e. yarn produced in
this mill is sold in the Mumbai market. Since, due to financial constraints the
organizations not able to do direct marketing.
All the transactions are carried out with the help of agents placed in Mumbai. All these
transactions are controlled by finance department. There are so many subsections in
finance department like establishment section, book section, cash& bank section, price
storage ledger section.

CAPITAL STRUCTURE
TOTAL CAPITAL
49% OTHERS 51% GOVERNMENT
IDBI IFCI NCDC PRIMARY COOPERATIVE SOCIETY
51% of the capital is provided by the government and the other 49%is provided by the
following:-
 IDBI- Industrial Development Bank of India

 IFCI- Industrial Financing Cooperation of India.
 NCDC- National Cooperate Development Corporation.
 Primary society
 Departmental structure of Financial Department
Finance
Manager
Accountant

Cashier
Source :company records
Various sub departments of Finance Department are:-
 Establishment section
All the employee payments like monthly payroll payments, medical, ESI, PF,
compensation, night allowances etc. are done through this section head.
 Book section
This section is headed by finance manager supported by accounts officer. The main job
of this section is keeping of books of all sections. All payment receipts are recorded in
this section. Preparation of general ledger, sub ledger, trial balance, profit & loss
accounts etc. are the main jobs of book section.
 Cash & bank section
This department is headed by Accounts Officer and assisted by Cashier. Daily cash
book is prepared and all cash balance has to be tallied with cash book. All bank
payments and receipts are incorporated through this section.
 Price stores ledger
This section is headed by Manager and assisted by Accountants. The main

responsibility vested in payment of suppliers. After getting instructions from materials
department they have to verify the bills along with the purchase order. They will pay
only the supplier the right amount.
The important duties of the finance department are as follows:
 Preparations of Balance Sheet, Trading and Profit and Loss Accounts.

 Verification of Vouchers, Bills.
 Giving Salary and Wages.

 Preparation of various books and accounts.
 Verification of cash balance.
INFORMATION PROVIDED BY THE FINANCE DEPARTMENT
 P&L accounts
 Balance sheet
 Statement of sales, production, capacity and utilization
 Cash flow statement
 Analysis of variance
 Statements regarding raw materials and process chemical variances.
ROLE WITHIN FINANCE DEPARTMENT
 Financial control
Financial control refers to the systems implemented in place to trace the directed
resources of an organization with timely monitoring and measurement. These
controls majorly track the accuracy of reporting which eliminates fraud, thereby
protecting an organization's physical and intangible resources.
 Business planning
Effective business planning can be the key to your success. A business plan can
help you secure finance, prioritize your efforts and evaluate opportunities.
 Risk management
The forecasting and evaluation of financial risks together with the identification
of procedures to avoid or minimize their impact.
 Statutory management

When a company is placed under statutory management it means that the

regulator takes over its core functions, managerial and operational. The
management of the company is locked out of running the company for the
period under which it is under statutory management.
 Tax management
Tax management is a vital component of smart financial planning.
 Treasury management
Treasury management is the creation and governance of policies and procedures
that ensure the company manages financial risk successfully.
Because a primary function of treasury management is to establish levels for
cash or cash equivalents so that a company can meet its financial obligations on
time, treasury management is sometimes simply referred to as cash
management.
 Investment management
Investment management requires finding ways to maximize company value by
managing long-term tangible and intangible assets to be more reliable, efficient,
or cheaper -- including evaluating asset financing options, accounting methods,
productions operation management, and maintenance schedules.
 Benefits management
Benefits management is the identification, definition, planning, tracking and
realization of business benefits. Delivering benefits is the primary reason why
organizations undertake change. A benefit is a positive and measurable impact
of change.
Financial associate’s takes actions or they consider complex matters,
information, and processes which are in terms of monetary terms and act on it
quickly with a sound judgment.
MARKETING DEPARTMENT
WTO, which came into existence from 1st January 1995, regulates the world trade by
a number of agreements signed by the member countries. ATC (Agreement on Textile&
Clothing) is one of the 29th agreements attended to WTO.

Disorganized industry particularly weaving, chemical processing, inadequate

technology up gradation, insufficient market intelligence, large inter unit difference in
productivity etc. are some of the issues which ACSM has to address in the coming era.
Marketing is a social process by which individuals and groups obtain what they need
and want through creating, offering and freely exchanging product and services of value
with others. Marketing has often been described as the art of selling products, but most
important part of marketing is not selling, The aim of marketing is to know and
understand the customers so well that the product or service fit him and sells itself.
Ideally, marketing should result in a customer who is ready to buy. All that should be
needed then is to make the product or services available.
MARKETING ACTIVITY
Cotton, which is the raw material, is purchased from various states in India such as
Punjab, Maharashtra and Tamil Nadu. It is mainly done by inviting quotation through
online. The cotton which is purchased from these states is processed to convert it as
yarn fiber. Yarn produced here in this mill is transported to the market located in
Mumbai.
The target market of ACSM is the Mumbai market from where it is purchased by
businessman concentrated on textile sector. In order to avoid the warehousing and
storage in Mumbai, these products are transferred to agents present in Mumbai. Thus
the yarn produced in ACSM is marketed mainly through Depot Marketing
DEPARTMENTAL STRUCTURE OF MARKETING
Marketing Manager

Assistant Marketing
Manager
Dealers
Agents
ENVIRONMENTAL ANALYSIS
Alleppey Co-operative Spinning Mills Ltd which is registered as a public limited

company in the cooperative sector is influenced by political, social, economic and
technological environment. Social welfare stands as the main goal of the firm. With the
firm facing stiff competition from outside our country, improvement and
standardization of the products and technology determines its profit. Standardization in
all its activities including better and improved depends much on the interest of public
and Government. Lack of government initiatives acts as a hindrance to the growth of
ACSM.
Considering the social factors influencing the firm and its marketing activities,
Alleppey Co-operative Spinning Mills functioning under the public sector is working
for the society, for the improvement of condition of living of the people. Thus any
advancement in the environment which negatively affects the people working there is
least welcomed.
MARKETING RESEARCH
A research about the marketing opportunities of a product of ACSM inside Kerala is

not worth because the firm is marketing its product mainly outside Kerala and that too
through Depot Marketing. But research is being done under the supervision of South

Indian Textile Research Association (SITRA) in various parts of North India mainly in
the markets of Punjab, Karnataka & Tamil Nadu. These leads to the conclusion that
cotton mills in Kerala, for facing competition from other states, needed to market
standardized product developing standardized machineries.
MARKETING INFORMATIONM SYSTEM
Agents placed outside our states are the main source of marketing information for
Alleppey Co-operative Spinning Mills. Since no MRP can be fixed on the fiber yarn
produced in ACSM, the changes in the market price and the condition are known
through the agents. Since cotton cannot have demand every time, the seasonal changes
are made known in advance to the firm by the agents. Other than this marketing research
done by SITRA personnel also provides marketing opportunities of the products
produced in ACSM.
PRICING STRATEGY
One of the most important factors relating to the fiber yarn is that no fixed MRP can be
printed on the fiber yarn. Thus the firm is forced to sell the product at the market price
of fiber yarn. Having known the changes that can happen in the market well in advance
the firm is able to stock raw materials to be used in favourable condition and thus
maintains its profit.
PROMOTIONAL ACTIVITIES
SITRA is the body which is engaged in promoting the product made by the firms under
it. Some of their promotional activities include:
 Advertising in Government publications.

 Awareness program throughout South India about the importance of combed
yarn (high quality) produced under it.
QUALITY MANAGEMENT

Quality management is the act of screening the defectives before they reach the
customers. In ACSM, quality management is carried out with the help of South Indian
Textile Research Association (SITRA), Coimbatore. The ultimate quality of yarn is
based on the raw material i.e. quality of cotton used. The quality of cotton purchased is
tested using sample which is given to the Central Testing Centre, Trivandrum.
The basic problem in ACSM is the manufacture of a standard product from an

essentially non-standard and highly variable raw material. The quality of yarn should
conform to certain accepted norms depending on the end use. It is equally important
that this is achieved at the minimum cost possible. In ACSM the Spinning Master looks
after the quality aspects along with two assistants in laboratory testing and in collecting
data from various departments.
The quality management in ACSM is done as a cycle taking place in the production
department. Scientific sampling, design of experiments, the analysis, the presentation
and interpretation of data through statistical techniques etc. creates the cycle taking
place during the process of quality management.
The communication pattern is followed in ACSM with regard to quality management

is as follows
Quality Manager
Quality Assurance Department
Quality Assurance Department

in charge

QUALITY SYSTEM STANDARD

A spinning mill where yarn is being produced as per the customer’s requirement
implemented ISO 9000 & ISO 9003 models. ISO 9003 Model is more appropriate for
mills producing special yarns and fabrics for industrial applications where the fabric
has to be engineered to meet very strong requirements. In Alleppey Co-operative
Spinning Mills Ltd, both these ISO 9000 standards are being applied with respect to the
production of yarn.
ISO 9002
These standards are applicable for industries where the specified requirements for
products or services are stated in terms of established design parameters. Thus ACSM
which is involved in the manufacturing process of yarns, fabrics etc., as per the
customers’ requirements follow these standard.
ISO 9003
These standards specify quality system requirement for situations which require
demonstration of suppliers’ capability to detect and control the disposition of raw
material testing the samples, grading them as per the properties and selling them to the
customers. All these process are done according to ISO 9003. The quality management
system implemented in Alleppey Co-operative Spinning Mills Ltd, Kayamkulam is
Total Quality Management (TQM). Basically TQM is the process of achieving agreed
customer requirements at the lowest effective cost by bringing out the talents for all the
employees. TQM stands for management approach of an organization, centred on
quality based on the participation of all its member and aimed at long term success
through customer satisfaction and benefits to all members of the organization and to
society the quality
Management under TQM involves several steps. These steps are being implemented in
ACSM as management system. They can be schematically showed as:
 ACQURING ISO 9000 CERTIFICATION

This is the first step to be followed in a textile mill for implementation of TQM.
ACSM developed its own procedures and methods as per the capability of its
organizational set up in acquiring ISO9000 certification. After acquiring
ISO9000 certification ACSM has been required to maintain document. This mill
is audited by authorized certifying bodies for the proper implementation of ISO
9000 guidelines. On satisfactory completion of the guidelines, the ACSM
Kayamkulam has been awarded ISO9000 Certification.
 BUSINESS PROCESS BENCHMARKING

Benchmarking refers to the continuous process of measuring the firm’s
products, services and practices against the toughest competitor in the
organization. Benchmarking is done for the process or for the profitability of
the organization. In Alleppey Cooperative Spinning Mills Ltd, Kayamkulam,
the items that are bench marked are:-
 Labour productivity
 Production/ spindles/ shifts(40s)
 Spindle utilization (%)
The process of benchmarking is done for various product characteristics like
unevenness, imperfection etc. it is implemented in ACSM to:-
 Develop or fix performance target to various levels

 Encourage and strive for excellence
 Create a better understanding of the industry and technology
 BUSINESS PROCESS RE-ENGINEERING

Once the benchmark and the process are understood it is necessary to reengineer
system so that a better product is produced. The process of re-engineering
includes changes in technology, attitudes, measures, measuring system, record
maintenance, corrective& preventive actions and work methods. It is being
implemented in ACSM to:-
 Reduce the cost of production
 Improve quality.
 Improve morale
RE-ENGINEERING CYCLE
Procedure for
Development
System Evaluation of
Reengineering Procedure
Competitive
Comparison Implementation
Results
IMPROVEMENT TEAM
It is defined as small group of employees in the same work area doing similar type of
work, who voluntarily meet regularly to identify analyses and resolve work related
problems.
Improvement team in Alleppey Co-operative Spinning Mill include:-
Spinning Master
Supervisors
Assistant Marketing
Manager
Quality Controller
Operators

SYESTEMS & MAINTENANCE DEPARTMENT

Today computers are being increasingly used all over the world to control the various
activities in business/ industrial enterprises with main objectives of:-
 Cost control
 Efficient Time Management.
In ACSM the computer is used in connection with the activity of maintaining the
machinery. The major areas where computers can effectively be used for machinery
maintenance can be showed as:-
 Routine maintenance and lubrication

They are to be performed on a periodical manner at scheduled intervals
(frequencies). Use of computer will be helpful to retrieve the following
information related to the maintenance and lubrication done in this organization.
They are as follows:
 Schedule of activities
 Daily/weekly work order based on schedules.
 Weekly backlog reports
 Record on breakdowns.
 Weekly/ monthly consumption of stores and lubricants and the
cost of material.
By retrieving weekly backlog reports, in ACSM necessary changes for the subsequent
weeks could be made easily. Records on breakdown should contain elements of cost
involved in maintenance. Data flow on consumption of stores and lubricants will enable
to estimate the cost involved. These details helped more in estimating the management
to compare it with the yearly/ half yearly budgets estimates.

 Preventive Mechanism
It is applied in ACSM to:
 Avoid breakdown
 Save cost involved in maintenance functions.
 Meet delivery schedules of products
 Establish and evaluate routine maintenance system.
 Equipment History
In ACSM the computer is mainly used for maintaining the equipments or machine
history. It is maintained in the form of machine files. This information includes:-
 Manufacturer of the machines.

 Model of the machines
 Serial number of each machine
 Cost of machine
 Date of purchase and commissioning.
 Site of the machine.
 A brief description about the functioning of the machine.
 Special attachments which are attached in the machines.
 Major breakdown which took placed in the machines.
 Major replacement which are made.
For the optimum utilization of the software the various program connected with the
machinery maintenance are suitably interlinked with the help of computer in ACSM in
such a manner whenever a change is affected in a particular area is related areas get
altered appropriately.
 Machinery Audit
Computers are used to maintain information on:-
 Maintenance records
 Production records
 Completed checklist of preventive maintenance
 Follow up reports

 Inventory Control
Inventory is necessary to give good customer service so as to run the plant more
efficiently. Software is used in ACSM for controlling inventory. This software is used
to store or retrieve information like:
 Part number (code number given to a group of spare parts or equipment)
 Supplier list
 Quality in stock Economic order quantity
 Work instruction
Computers are used to give work instructions to each employee in the mill. Work
instructions are prepared by the person in charge of maintenance. These work
instructions are issued after obtaining the approval from the management and they are
communicated to the responsible worker like Technical in charge. These are approved
work instructions which are stored in the computer for further rectification and
providing this material for training purpose
 Budgetary control
In ACSM the computers are used and a tool for budget control i.e. for exercising control
over maintenance expenses incurred. They can be classified as follows:-
 Capital expenditure
 It is the expenses on purchase of machinery equipment which are to be
purchased as the technological advancement taking place or as the SITRA
standards specifies.
 Programmed replacement
 It covers the expenses incurred on replacement of various machine performance
and product quality.
 Recurring expenditure.
To expenses on store items including lubricants annual budgets when approved may be
fed into the computers and the expenses may be categorized under the relevant budgets
heads. Necessary feedback are provided by the computers at scheduled intervals which
help a lot in exercising control over cost involved in maintenance cost involved in
maintenance.
DEPARTMENTAL STRUCTURE
Maintenance
Manager
Supervisor
Mechanical
Filter
Maintenance
Gang

ACTIVITIES DONE
As an MBA student this internship was really helpful. I came to knowhow management
maintain relationship with the workers and can understand the real working system. My
working hour in the organization was 9.00am to 5.00pm through this I got a lot of
experiences. My communication skill may also change a lot through this internship I
got many ideas and experience with most of the departments in the organization. The
various activities which I carried out are mainly in the Human Resource Department
and I work with the HR manager Mrs.Asha and also other employees in the
organization. Most of the days I assist to prepare various records and collecting
information related to the Human Resource Department. Then I interact with the
employees in the firm most of them are very satisfied with their work and their working
times. The firm made some good working atmosphere to the employees so they are very
productive.
The various activities that I carried out during the internship period are:
 On 01-10-2018 Started Internship at Alleppey Co-operative Spinning Mills Ltd,

Kareelakulangara. First day of My Internship the guide Mr:Sainudheen kunju
Sir explained the various activities take part in the organization and also give
some general information about the textile industry, their organizational
structure, work process, number of employees, shift time, marketing etc. And
also gives an overview about the spinning mills in Kerala. There are 7 Co-
operative spinning Mills in Kerala, Head office is in Trivandrum.
Then i went to the plant. Introducing different section by the guide. There are 6
departments in spinning mill namely Production, Finance, HR, Marketing,
Quality and Maintenance .Production process of yarn is carried out by 7 types
of machines and each process is carried out and considered as separate section.
 On 03-10-2018 HR Manager Mrs:Asha, assigned a work for me. My duty is to

prepare job cards for employees (permanent, badly, trainees and other mill
casuals).

 On 04-10-2018 In this day my duty is to do cone label stamping, which means

it generate the idea of cost control, waste control and energy consumption.
On this day my guide assigned a work for me, my work is to prepare dispatch
vehicle checklist, period from 01 September 2018 to 30 September 2018.
 On 05-10-2018 the Electrical department head Mr:Rijukesh Sir assigned some

work for me, One is that rechecking the daily power consumption register of
machines, with the help of supervisors records(electrical) and the second work
is to enter these power consumption details and total shut down periods into an
electronic register by using Power Accounting.
 On 06-10-2018 I did power consumption chart (monthly basis) with the help of
Riju sir this chart is constructed on the basis of electronic power consumption
register.
My project guide gives an overview about ISO 9001- 2008, The Alleppey Co-
operative Spinning Mill is awarded ISO 9001- 2008, American Beuro Of
Standards (ABS) in the year 2015.
 On 07-10-2018 Production department head Mr:Jayaraj sir gives some work for
me. Today`s work is to prepare cotton consumption cum daily stock register for
inventory department with the help of store register (cotton outward register)
and supervisors (production) register.
 On 08-10-2018 Today`s work is to prepare attendance sheet of permanent,
temporary employees and trainees. The HR department follows a double
checking system done through security office register, Supervisors records,
punching sheet and job card of employees.
 On 09-10-2018 I did performance evaluation report of trainees. It is prepared
by considering attendance, efficiency, production rate and minimum errors.
 On 11-10-2018 Wrote call letters for selection of new trainees against their
application for the post of trainees.

Today I prepared piece rate wage income - for winding department employees.
Piece rate system means a system of wage payment in which workers are paid
on the basis of the units of output produced.
 On 12-10-2018 I did marking absenteeism of permanent employees, temporary

employees and trainees. In the mill there is 30% of absenteeism. The reason is
mainly due to night shift, dust, heat and personal reasons.
 On 13-10-2018 I continue my work in the HR department and also prepared
rank list of trainees who prepared for interview. It is on the minimum
qualification and age basis.
 On 15-10-2018 My project guide assigns a work for me, that is preparation of
dispatch vehicle checklist from 1st October 2018 to 12th October 2018.
And I am prepared the rank list of trainees who prepared for interview. It is on
the minimum qualification and age basis.
 On 16-10-2018 prepared cotton inward register. It is a register which is used to

keep the details of cotton purchased by the mill. The cotton is sent for test at
Trivandrum, if any damages are identified then the cotton will be rejected. All
such matters are registered in this register.
Prepared production records for the departments carding, spinning and cone
winding. It is usually done on daily basis.
 On 17-10-2018 Prepared cotton consumption cum daily stock register.
On this day, we had a description by the guide about the internal audit of the
mill. Internal audit is done by the internal auditor.it will be done at every 30
days. Audit of one department is done by the auditoer of the other department;
it helps to identify the mistakes easily.
 On 19-10-2018 Prepared cotton inward register with the help of security office
register and supplier`s bill.
 On 20-10-2018 Todays work is to prepare muster roll of employees. In this
company this is usually prepared on weekly basis.

 On 22-10-2018 on this day my work is to prepare performance evaluation report

of employees with the help of their attendance, efficiency, minimum errors in
production and timing.
 On 23-10-2018 On this day my work is to furnish attendance register on the
basis of C/off, leave with wages and public holidays.
 On 24-10-2018 The HR department head Mrs:Asha madam gave a task for me,
my work is to prepare the attendance details, absenteeism, c/off and leave with
wages etc. are into an electronic attendance register.
 On 25-10-2018 QC Assistant Mrs:Suja madam, she assigned a work for me.
My work is to prepare daily Hank yarn production chart with the help of
production department and TD8 machine details (production).
 On 26-10-2018,this day my work is to prepare power consumption chart with
the help of departmental head (electrical).
And I am assisting the HR Department Head; my duty is to prepare ESI

Applications and Salary Certificates for required employees.
 On 27-10-2018 prepared attendance sheet of mill casuals with the help of

punching sheet, job cards, supervisors records (production) and the attendance
register they have in the front office.
Before making the final list we will considering their c/offs, leave with wages
(LWW), public holidays, and overtime and off days.
 On 29-10-2018 prepared piece rate wage for winding department period from
01-10-2018 to 29-10-2018, the formula is ;
Total wage earned = Total units of outputs produced*wage rate/unit of

output
And I am wrote the register for the selection of trainees, minimum qualification
needed for workers are 8th standard , workers having above age of 55 will also
be rejected.
 On 31-10-2018, I assist the HR Department Head for taking punching sheets of

departmental heads, gate casuals, office attenders, canteen employees, drivers

and cleaning staff and also verifying the punching sheets and their regular
attendance register, then considering their c/off `s, leave with wages, overtime,
public holidays and off days. Then the next work is to enter these details into
the muster roll and electronic attendance register.
And finally mark the attendance percentage (%) of these employees, period from
01-10-2018 to 31-10-2018.

SWOT ANALYSIS
A SWOT analysis (or SWOT matrix) is a structured planning method used to evaluate
the strength, weaknesses, opportunities, and threats involved in a project or in a
business venture. A SWOT analysis can be carried out for a product, place, industry or
person. It involves specifying the objective of the business venture or project and
identifying the internal and external factors that are favorable and unfavorable to
achieve that objective. Some authors credit SWOT to Albert Humphrey, who led a
convention at the Stanford research institute (now SRI International) in the 1960s and
1970s using data from fortune 500 companies. However, Humphrey himself does not
claim the creation of SWOT, and the origins remain obscure. The degree to which the
internal environment of the firm matches with the external environment is expressed by
the concept of strategic fit.
 Strength: characteristics of the business or project that give it an advantage over

others.
 Weaknesses: characteristics that place the business or project at a disadvantage
relative to others.
 Opportunities: elements that the project could exploit to its advantage.
 Threat: elements in the environment that could cause trouble for the business or
project.

In SWOT Analysis the strength, weakness, opportunities and threats of Alleppey Co-
operative Spinning Mills ltd, Kayamkulam is analysed and noticed.
STRENGTH:-
 They have only few competitors.

 Leaders are available around the clock in case of plant emergencies.
 Most of the non-core areas are outsourced for canteen, excellent housekeeping
practices, restrooms etc.
 Attendance time punching by all employees including head of the mill.
 Technical document for all technical policies.
 Follows the standards laid down by SITRA Coimbatore.
 ACSM has skilled work force, educated staff and professional qualified
managers in good numbers.
 Provide financial support to their employees.
 Provide better incentives and other benefits to employees such as leave, Lww,
C/off, and ESI benefits.
 The company also uses better waste disposal methods according to Government
Norms.
 Strategic location with no other competitors around at present.
 The company has not faced any strike for past few years because of excellent
management of labor.
 The company also maintains an Agro-Garden in their compound.
 ACSM has excellent infrastructure facilities including National Highway, Rail
line which is near to the company.
 ACSM has excellent labor relationship.

WEAKNESS:-
 Mill is highly dependent on the availability of cotton as raw material from other
states in India.
 The main customer of ACSM is Mumbai businessman who deals with the textile
sector.
 There is no fixed MRP like every other product.
 Transportation charge blocks it proper functioning.
 Most of the employees are at the age of 50, so the rate of absenteeism increased
due to health issues.
 The company also follows a strict time system.
 No flexibility in the organization because ACSM is a public sector undertaking
and the major decisions of the company has to be approved by the Government
which delay the implementation of plan.
OPPORTUNITIES: -
 Prosperity of the industry in both domestic and export front.

 Huge potential of internal demand driven by improvement in standard of living,
increase in population, large cotton resources, ready availability of skilled
labour and competent technical manpower.
 The decision of government to start working up of 6000 spindles only at first
stage
 Financial assistance provided by TEXFED.
 Most advanced automatic power loom

THREATS
 The main threat of ACSM is its competitors especially from China and Sri
Lanka.
 Trade liberalization.
 Decline in cotton yarn export.
 Lack of modernization
 Non availability of credit
 Low productivity
 Increase in cost of production.
 Labor shortage due to pay scale provided to them.
 Cost of electricity is very high.
 The import duty of the government is not favourable; it causes fluctuations in
the price of the product of ACSM.

FINDINGS
 In Alleppey Co-operative Spinning Mill the employee-employer relationship is
very high. So it reflects their total efficiency. They produce best product with
ISO standard mark.so they mainly focus on quality of the product.
 They have good production facility with modern machinery with ISO standard.
 In according to my findings company provide financial support to their
employees. Employers and employees mainly focus on the growth of the
company. As per opinion, employees are very honest in any aspect like skill,
honesty…etc.,
 Alleppey Co-operative Spinning Mill is concerned with qualified and skilled
workers that’s the reason for their success but most of the workers are at the age
above 50, because of this their absentism is increased due to health problems.
 Alleppey Co-operative Spinning Mills products are not harmful to the
environment.so The Company is environment friendly with good waste disposal
system in according to government policies.
 Company provides better incentive system to employees. The company did not
breakup salaries and incentives of their employees; because of this they
smoothly run their production.
 No strikes have been reported for the past few years.
 Strength of ACSM is the quality of product, service, and timely delivery.
 In ACSM cotton is being transported from Andhra Pradesh, Maharashtra, Tamil
Nadu and Punjab which led to the high production cost resulting from
transportation cost.
 Most of the employees travel at long distance for their reachability for their job,
so that they can`t reach at timely it directly affect their strict time system.
 Company is having good political interference. But they have good relationship
with management. The company is not interfered with the strikes and pressures
of the politicians.

 The company is heavily depending on electricity and around 60% of the product
price for this.
 No major environmental pollution.
 Wages cost is high.
 Customer`s have no rejection for ACSM product which shows product
satisfaction.
CONCLUSION
In this internship an attempt was made to study about the organization, the various
departments in the organization and to secure practical knowledge regarding HR
functions, financial activities, production process, the marketing process etc.
involved in ACSM Kayamkulam. While doing this study, it came to know the fact
that the textile & clothing industry is the single most export earner around 20% of
the gross exports earning for India. Our country holds second position in the world
market in the field of yarn production.
But the condition of Textile Industry is getting declining day by day especially in
South India. It is mainly due to the non-availability of credit and lack of
modernization in the field of yarn production. These are not only the reasons
behind this declining stage but it is mainly due to uncertain risk behind the raw
material, i.e., cotton
It is very hard to get cotton. In ACSM cotton is being transported from Andhra
Pradesh, Maharashtra, Tamil Nadu and Punjab which led to the high production
cost resulting from transportation cost.

SUGGESTIONS
 If more welfare amenities are provided to the employees, their performance
will also increase.
 Young candidates must be appointed.
 Group activities such as quality circles, brain storming, suggestion system
etc. can be introduced.
 Reduce waste
 Use non-renewable energy sources.
 The company could use non renewable energy sources like solar panels
which Would reduce the electricity charges, which is one of the main
charges which is incurred in production.
 The company must try to activate the R&D cell in order to have new
inventions in the fields.
 In order to increase the production, the company must introduce some
motivation schemes for the employees.
 For the smooth functioning, they must invest a reasonable amount of
working capital.
 Improve the first aid facilities by providing free medicines and treatments.
 Should persuade workers to wear safety equipment`s.
 Industrial counseling may be provided to the employees.
 Many employees have to travel long distance daily. So, the company should
provide quarters to the employees.
 Company should find new ways to collect raw materials at low cost from
various sources.
 The company should conduct market research to find out the movement of
product and to identify potential customers.
LOG BOOK DETAILS

DATE Details Of Activities
01-10-2018
Prepared job cards for employees [permenant,

03-10-2018
badly,trainees & other mill casuals]
I did cone label stamping and also prepared dispatch

04-10-2018 vehicle checklist,period from 01-september-2018 to 30-
sep-2018
Prepared an electronic power consumption register by

05-10-2018 using power accounting,peiod from 01-sep-2018 to 30-
sep-2018.
I did power consumption chart [monthly basis] on the

basis of electronic power consumption register.
06-10-2018 Then my project guide gives an overview about ISO 9001

– 2008.The ACSM is awarded ISO 9001-2008, American
Beuro Of Standards[ABS] in the year 2015.
07-10-2018 Prepared cotton consumption cum daily stock register.
Prepared attendance sheet of employees,the HR

department follows a double checking system done
08-10-2018
through security register, supervisors records, punching
sheet & job cards of employees.
I did performance evaluation report of trainees.it is

09-10-2018 prepared by considering attendance,efficiency,production
rate and minimum errors.
Wrote call letters for selection of new trainees against

11-10-2018
their application for the post of trainees.

Idid furnishing attendance register and marking

12-10-2018 absenteeism of permenant employees, temporary
employees and trainees.
Continue the previous work in the HR Department and

13-10-2018 also prepared rank list of trainees who prepared for
interview.It is on the minimum qualification and age basis.
Prepared dispatch vehicle checklist from 1st October 2018

15-10-2018 to 12th October 2018 and I am continued the
work,preparation of the rank list of trainees.
Prepared cotton inward register.It is a register which is

used to keep the details of cotton purchased by the
16-10-2018 mill.Then I am prepared production records for the
departments of carding,spinning and cone winding.It is
usually done on daily basis.
Prepared cotton consumption cum daily stock register

period from 15th September 2018 to 3rd October
17-10-2018
2018.on this day the project guide gives a detailed
information about the internal audit of the mill.
Prepared cotton inward register with the help of security

19-10-2018 office register and suppliers bill [period from 4th October
2018 to 16th October 2018]
20-10-2018 Prepared muster roll of employees
prepared performance evaluation report of employees with

22-10-2018 the help of their attendance, efficiency, minimum errors in
production and timing.
furnish attendance register on the basis of C/off, leave

23-10-2018
with wages and public holidays.

Prepare the attendance details, absenteeism, c/off and

24-10-2018 leave with wages etc. are into an electronic attendance
register.
Prepared daily Hank yarn production chart with the help

25-10-2018 of production department register and TD8 machine
details (production).
 Prepared power consumption chart with the help of

departmental head (electrical).
26-10-2018  And I am assisting the HR Department Head, my
duty is to prepare ESI Applications and Salary
Certificates for required employees.
 Prepared attendance sheet of mill casuals with the

help of punching sheet, job cards,supervisors
records (production) and the attendance register
they have in the front office.
27-10-2018
 Before making the final list we will considering
their c/offs, leave with wages (LWW), public
holidays, overtime and off days.
 prepared piece rate wage for winding department

period from 01-10-2018 to 29-10-2018
29-10-2018
 And I am wrote the register for the selection of
trainees,
 I assist the HR Department Head for taking

punching sheets of departmental heads, gate
31-10-2018 casuals, office attenders, canteen employees,

drivers and cleaning staff and also verifying the
punching sheets and their regular attendance
register, then considering their c/off `s, leave with

wages, overtime, public holidays and off days.

Then the next work is to enter these details into
the muster roll and electronic attendance register.
 And finally mark the attendance percentage (%) of
these employees, period from 01-10-2018 to 31-
10-2018.

Bibliography
STATISTICS AND DATA ON INTERNATIONAL TRADE. (2000). SITRA, 150.
(2017). ACSM SUSTAINABILITY REPORT. ALAPPUZHA: ACSM.
ORGANISATIONAL PROFILE. (2017, APRIL 1). Retrieved JANUARY 12, 2019, from
ACSM: http//www.acsm. co.in
TEXTILE INDUSTRY. (2017, DECEMBER 15). Retrieved JANUARY 27, 2019, from
TEXTILE: http//:www.textile.co
DESTER. (2006). HUMAN RESOURSES MANAGEMENT. NEWDELHI: PRETICE HALL.
KOTHARI, C. (2014). RESEARCH METHODOLOGY: METHODS& TECHNIQUES.
NEWDELHI: NEW AGE INTERNATIONAL PUBLISHERS.

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Internship Report On Alleppey Co-operative Spinning Mills LTD, 2018

Institute Of Management And Technology, Punnapra Page 1

Institute Of Management And Technology, Punnapra Page 2

OBJECTIVES OF THE STUDY

 To study about overall management of the organization.

Institute Of Management And Technology, Punnapra Page 3

 To familiarize with business organization to relate theory with practice.

SIGNIFICANCE OF THE STUDY

Institute Of Management And Technology, Punnapra Page 4

SCOPE OF THE STUDY

 Internship can be carried out mainly with an object of gaining practical

LIMITATIONS OF THE STUDY

 Top management was reluctant to disclose confidential matters related to the

Institute Of Management And Technology, Punnapra Page 5

Chapter 1: Introduction which includes objectives, significance, methodology, scope

Chapter 4: Organizational Structure

Institute Of Management And Technology, Punnapra Page 6

Institute Of Management And Technology, Punnapra Page 7

GLOBAL SCENARIO OF TEXTILE INDUSTRY

Institute Of Management And Technology, Punnapra Page 8

Important Statistics and Data on International Trade:-

Institute Of Management And Technology, Punnapra Page 9

Country Textile (%)

Sri Lanka 3.60%

(STATISTICS AND DATA ON INTERNATIONAL TRADE, 2000)

Institute Of Management And Technology, Punnapra Page 10

Leading Manufactures In Textile Industry:-

Country Million US$ Share

UAE 1632.76 7.75

Germany 1607.33 7.65

France 934.41 4.46

Italy 782.13 3.74

Spain 642.54 3.08

Netherlands 537.77 2.57

Bangladesh 508.85 2.83

China 440.51 2.10

TOTAL (Top 10) 13046.11 62.30

CURRENT SCENARIO OF TEXTILE INDUSTRY IN INDIA

Institute Of Management And Technology, Punnapra Page 11

Institute Of Management And Technology, Punnapra Page 12

 MMF production recorded an increase of 10% and filament yarn production

Institute Of Management And Technology, Punnapra Page 13

COTTON TEXTILE INDUSTRY IN KERALA

Institute Of Management And Technology, Punnapra Page 14

PROCESS FLOW CHART OF TEXTILE INDUSTRY

Spinning Mill Composite Mill

Hand Loom Power Loom

Institute Of Management And Technology, Punnapra Page 15

At present in Alleppey Co-operative Spinning Mills, there are 22 machines. The

Functioning process of the mill is carried on shift basis:-

Work shift Time

First shift 7am – 3pm

Second shift 3pm – 11 pm

Third shift 11pm – 7 am

Institute Of Management And Technology, Punnapra Page 16

 Noil used to produce yarn by allowing it to reproducing process.

 Sri. Thachady Prabhakaran (President)

Institute Of Management And Technology, Punnapra Page 17

 Sri. A.C. Mathew

 Sri K.K. Chellapan (Director)

Institute Of Management And Technology, Punnapra Page 18

 During 2017, we transitioned the ISO 9001:2008 Certificate to ISO 9001:2015

VISION AND MISSION OF ALLEPPEY CO-OPERATIVE SPINNING MILLS