CHAPTER 1

1.1 INTRODUCTION

Organization is a social unit which is deliberately constructed and reconstructed to seek

specific goals. An organization comes into existence when there are a number of persons in
communication and relationship to each other and are willing to contribute towards a common
endeavour. The evolution or organization dates back to the early stages of human civilization
when two or more persons began to cooperate and combine together for fulfilling their basic
needs of food, clothing, shelter and protection of life. Thus, an organization is born when people
combine their efforts for some common purpose. It is an universal truth that an individual is
unable to fulfil his need and desires alone because he lacks strength, ability and resources. So he
seeks the cooperation of other people who share goals with him.

Organization is a social unit of people that is structured and managed to meet a need or to
pursue collective goals. All organizations have a management structure that determines
relationships between the different activities and the members, and subdivides and assigns roles,
responsibilities, and authority to carry out different tasks. Organizations are open systems--they
affect and are affected by their environment.

The organization study at Keltron Component Complex Limited (KCCL), Kannur has
provided me with information of various aspects and has been a valuable help and assistance to
me.This study is undertaken to get an exposure to the functioning of different departments of the
company. It also helps to interact with the managers of different departments and to observe the
workers at their workplace and to act together with them. The main purpose of the study is to get
a clear-cut idea about the functioning of different departments of the company.

Keltron is India’s first and the largest electronics corporation in the State sector. Keltron
has been a catalyst in making electronics work in almost every aspect of our daily life,
since1973. It is India’s leading capacitor manufacturing company. It offers the widest range of
capacitors covering various types of aluminum electrolytic capacitors, AC motor start capacitors,
motor run capacitors and power factor correction (PFC) capacitors.

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 OBJECTIVES OF THE STUDY

 To study the organizational structure of the company

 To understand the functions of various departments
 To gain practical knowledge about the functioning of various departments of the organization
 To understand the strength and weakness of the organization
 To understand the external environment of the organization

METHODOLOGY

Research methodology is a systematic and scientific description of how the study have
been carried out scientifically. It is a way solving the research problem, it gives a clear idea
about the research conducted. Research methodology refers to the various sequential to be
adopted by a researcher in study a problem with certain object in view.

The “Organization study at KELTRON is based on a descriptive study. The data

collections were both from primary and secondary sources.

PRIMARY DATA SOURCES:

Primary data are those data which are collected first hand and thus happened to be in
original character. The primary data includes the data by observing, by visiting and by
interviews with the company personnel respective levels of management and departments.

 Interview with managers, office staff and workers

 Informal talk with employees and observations

SECONDARY DATA SOURCES:

Secondary data are refers to the information of facts already collection and which have
already been passed through the statistical process.

 Data collected from annual reports, departmental report, and catalogues etc.
 Data collected from company website and Wikipedia.
 Data collected from books.

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 SCOPE OF THE STUDY

The study is intended to provide managerial insight for a management student. It will
enable him to take up responsibilities of a manager effortlessly and provide him more
confidence. The scope of the study is confined to a few selected departments and their functions.
The trainee may also get a feel about how business executives operate in their work settings.

LIMITATIONS OF THE STUDY

 More talks with the Top officials of the company were not possible due to their busy schedule.
 The conclusions and the inference are drawn only based on the report, received from the
interviews and it may be coloured by personal bias.
 More talks with the Top officials of the company were not possible due to their busy schedule.

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 CHAPTER 2

INDUSTRY PROFILE

INTRODUCTION

An electronic component is any physical entity in an electronic system used to effect the
electrons or their associated fields in a desired manner consist with the intended function
of the electronic system. Electronics play a vital role in the economic and social development of
a country, especially the liberalization policy followed by the government, has enabled the
development of electronic industries in our country.

ALUMINIUM ELECTROLYTE CAPACITORS

Electrolytic capacitors are passive electronic components whose basic function is to store
energy. Fundamentally, it is a charge storage device which consists of two conducting plates
separated by an insulator called dielectric. A variety of capacitors are in use in electronic and
electrical circuits.

A Capacitor is identified by the type of dielectric or plate material used on it. Some of
the most common capacitors which find widespread application in electronics as well as
electrical industries are paper, plastic film (such as Polystyrene, Polypropylene, Polycarbonate,
etc.), Ceramic, Mica, Aluminium Electrolytic, Tantalum, and others.

A capacitor is expressed in terms of its capacitance, in MF (micro-farads) and its

working voltage in Volts (V). Other parameters which specify its quality are Leakage Current,
Dissipation Factor (also referred to as Loss Factor).

Aluminium Electrolytic Capacitors are being used extensively for consumer electronic
goods all over the world. Like any other type of capacitor, the Aluminium Electrolytic
Capacitors (AECs) too have two plates separated with a dielectric. While most other types of
capacitors are bi-polar in nature (any polarity voltage can be connected to either of the plates) a
good majority of AECs are polar. The outstanding advantage of electrolytic capacitors is the
large capacitance/volume ratio. The large capacitance in ECs arises from very thin film of
dielectric used in the order of 10-6 cm.

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 The method of making film is by anodic oxidation. Metals like Aluminium, Tantalum,
Vanadium, Magnesium, Bismuth, and Antimony are readily coated with a film of dielectric by
electrolytic "forming process". The forming process consists of the deposition of a thin film of
Aluminium Oxide on the surface of the plate. Aluminium foil enters in the tank of electrolyte
with a constant voltage applied and passes through the tank until the required thickness of film is
produced

The essential parts of electrolytic capacitors and their functions are: -

PARTS FUNCTIONS

Aluminium foil Positive or anode

Oxide film Dielectric

Electrolyte Negative or true cathode

(Usually a paste of glycol and ammonium tetraborate)

Spacers Necessary to separate the cathode and anode film from

direct contact

A second Contact electrode to the electrolyte - the cathode

Aluminium foil

5
 The etched foil type is similar in construction to the plain foil type, but the anode foil is
mildly acid etched before forming with a consequent increase in the anode surface area. As the
electrolyte is a paste it can contact the whole of the thin oxide film that is formed on this
undulating surface. It is essential to control the etching process closely so that 'thin spots are not
left on the foil and to ensure that no acid is left which might contaminate the foil. The increase
in surface area results in a considerable increase in the capacitance obtained.

Although the capacitors have common function of storing the electrons/energy, it is

used in almost all the sectors of the economy. For instance, capacitors are used in various
appliances like air-conditioners, refrigerators, motors, coolers, pumps, and fans. Railways,
power, cement, steel, automotive, electronics--almost all the sectors make use of them. New
projects across different sectors will have direct impact on the demand of the capacitors.
Electrolytic capacitors are mainly used in radio receiver, tape-recorders, TV (Black & White,
Colour), PA equipment. Hi-fi system, defence computer, communication equipments and
industrial applications.

New projects across different sectors will have direct impact on the demand of the
capacitors. More the new projects more will be the demand for capacitors. Demand is also
directly related on demand for consumer durables like refrigerators and air conditioners. Thus,
capacitors have universal application and in some form or the other it is used by both
households as well as industries.

GLOBAL SCENARIO:

Faster, better and cheaper is the slogan that drives today’s electronic industry.
Consumers are buying goods at a faster rate than the past. Electronic industry now follows the
slogan Innovate or Perish. Thus, we can see number of novel and modified products in the
market today.

The basic technology for the manufacture of Aluminium Electrolytic Capacitors has
changed a little since the first high performance AECs using formed and Etched Aluminium
Foil was developed in late 1930's. However, over the years, especially with the advent of
modern equipment utilizing integrated circuit and with the demand imposed by improved and
consistent performance over extended period, substantial adaption and process improvement
have been made.

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 The worldwide electrical and electronics industry is experiencing phenomenal and
remarkable changes these days. The worldwide electronics industry is distinguished by fast
technological advances and has grown rapidly than most other industries over the past 30 years.
Globally, during the early 2000s, end-users of passive electronic components like
capacitors namely original equipment manufacturers were applying continuous pressure on the
industry to lower prices. This had a devastating impact on profitability, as many capacitor
manufacturers were forced to produce components at or below the cost of production. In
addition, the industry was forced to contend with a generally weak economic climate,
heightened competition from the likes of Asia, and downturns in leading end markets like
telecommunications equipment and computers. These negative conditions led to workforce
reductions, consolidation, plant closures, and a reduction in overall capital spending and
production capacity.

The major global players in electrolytic capacitors are:

 Barker Microfarads, Inc. (USA)

 Cornell Dubilier Electronics, Inc. (USA)
 DuraCap International Inc. (Canada)
 Elna Co. Ltd. (Japan)
 Epcos AG (Germany)
 Guangdong Fenghua Advanced Technology (Holding) Co. Ltd. (China)
 Hitachi AIC, Inc. (Japan)
 Itano Enterprise Corp. (Taiwan)
 Haimen Sancon Jetwell Electronics Co., Ltd. (China)
 Illinois Capacitor, Inc. (USA)
 Jacktronics Electronics Company (China)
 Arcotronics Group (Italy)

 Evox Rifa Group Oyj (Finland)

 Lelon Electronics Corp. (Taiwan)

 Nichicon Corp. (Japan)

 NIC Components Corp. (USA)

 Nippon Chemi-Con (Japan)

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  Panasonic Corporation (Japan)

 Sanyo Electronic Device Company (Japan)

The end-use markets of aluminium electrolytic capacitors are:

 Consumer Electronics
 Computers and Peripherals
 Telecommunications
 Industrial Applications
 Inverters
 General-Use Inverters
 Inverter Air Conditioners
 Other Inverters

ASIAN MARKET TREND: Chinese Capacitor Saga and a

Comparison with India

China, considered to be one of the Asian dark horses, has made an astounding progress
in the capacitor industry. The technological, economical, and social policies adopted by the
Chinese government have provided a tremendous boost and encouragement to the Chinese
manufacturers and entrepreneurs. Supportive import, economic, and development policies have
encouraged leading multinationals in the field to set up development and manufacturing
facilities in conjunction with the local Chinese players. This drive has positioned China,
unknown and unheralded a decade ago, on the world capacitor map China has the capacity and
technical knowledge to produce capacitors of all types. Varieties of capacitor manufactured
range from the most advanced surface-mount ceramic chip capacitors, high-voltage capacitor
banks to the basic components. Capacitor unit sizes range from universal-scale, highly
automated, high-volume (mass production) plants down to small garage operations of the small-
scale entrepreneurs. The technology and size of the manufacturing machinery deployed in these
plants ranged from state-of-the-art high-volume version operating in clean-room environments
down to the simple manual machines functioning in unprotected environments. All the large-
sized capacitor factories are government-owned or joint ventures with government companies.
Most of the capacitor production and usage aspects are directly or indirectly government-
controlled companies. The number of factories is more than 500. The production of ceramic
capacitors is 40 billion, electrolytic capacitors 25 billion, and plastic film capacitors 15 billion.
8
The large-scale units are 25. A large and growing demand for capacitors exists from all sectors
in China. This offers a unique advantage in the setting up of modern large-scale plants. These
plants can obtain their basic loads from the domestic market. Rest of the production is exported
on marginal-cost basis. This aspect enables Chinese capacitors to be price-competitive in the
export market and the valuable foreign exchange earner.

INDIAN SCENARIO:

The size of Indian market for capacitors is estimated to be around Rs.1000crore. During
the last few years capacitors market has posted a healthy growth of 10 percent annually.
According to a Market survey the annual requirement of all kinds of capacitors in India has
been estimated at 1500 million pieces. Like any other electrical equipment market, capacitor
market is also characterized by the co-existence of both organized and unorganized players.
However, it is more fragmented with around 25,000 capacitor players operating in the country.

The electronic industry in India constitutes just 0.7 % of the global electronic industry.
Hence it is miniscule by international comparison. However the demand in the Indian market is
growing rapidly and investments are flowing in to augment manufacturing capacity. India
however remains a major importer of electronic materials, components and finished equipment
amounting to over US$26 Billion in 2009. This is not a desirable situation and local
manufacturing has to keep pace with growing local demand.

The electrical industry has been showing signs of recovery after poor performance in the
recent years. The domestic electrical industry, which includes equipment for generation,
transmission, distribution and use of power in industrial units, constitutes a major part of the
electrical products. The growth of the industry is directly related to the development of power
generation and distribution.

COMPETITORS:

The major competitors in India for Electrolytic Capacitors are Punssumi India Ltd,
Uptron, Webelson, Philips, Incap, Elnet etc. With the onset ofliberalization of economy and
bringing capacitors under OGL the company must compete with international brands like
Rubycon, Nichicon, Panasonic, Samsung, Elna etc.

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 CHAPTER 3

COMPANY PROFILE

KELTRON COMPONENT COMPLEX LTD. (KCCL)

Keltron Component Complex Limited (KCCL) is a Government of Kerala undertaking

promoted by Kerala State Electronic Development Corporation (KSEDC) and founded by Mr.
K.P.P Nambiar. Keltron Component Complex Ltd is located at Keltron Nagar, 15 km from Kannur
in Kerala. The company has a land area of 44,100 square meter, and a factory area of 9150 square
meter. It is India's leading capacitor manufacturing company. It offers the widest range of
capacitors covering various types of aluminium electrolytic capacitors, AC motor start capacitors,
motor run capacitors and power factor correction (PFC) capacitors.

Keltron, Kerala State Electronics Development Corporation Limited, is a public-sector

Electronics Company located in Kerala. It is headquartered at the capital city of Kerala,
Thiruvananthapuram. The company is under the direct control of the State government of Kerala.
Keltron Component Complex Ltd (KCCL) was incorporated on 8th October 1974 as an associated
company of Kerala State Electronics Development Corporation Limited (KSEDC). The name
KELTRON was coined from two words, Kerala Electronics and when it was necessary to use a
small word in Telegrams referring to the company.

Keltron is India’s first and the largest electronics corporation in the State sector. Keltron has
been a catalyst in making electronics work in almost every aspect of our daily life, since 1973. The
tag line launching a State-owned electronics enterprise, more than a quarter century ago, read
“spearheading an electronics revolution in Kerala”. It was an experiment by Government of Kerala
to transform the laid-back, picturesque Kerala State known for its spices, natural beauty, Kathakali,
and the Onam boat races, to an arena for industrial and technological development. That was how
Keltron was born.

It is a public limited company established for the manufacture of Aluminium Electrolytic

Capacitors of KSEDC on 28th August 1986. A plant for the manufacture of 18 million pieces of
Aluminium Electrolytic Capacitor was established in collaboration with M/S N.V Sprague
Electromag Belgium, which was a subsidiary of Sprague Electric Co. USA. The company went into
commercial production in August 1978. The expansion of capacitor plant was undertaken in a
phased manner to 55 million pieces by 1984-1985 and 150 million pieces by 1990-1991. The
production increased to 145 million pieces in 1999-2000.
10
 Keltron Component Complex Limited markets its products under the brand name
KELTRON of its parent Company. It has a state of the art manufacturing facility with sophisticated
automatic machines from Japan, Taiwan, and Europe. It has the capability to produce all types of
Aluminium Electrolytic Capacitors which conform to national and international standards. The
manufacturing technology is constantly upgraded by R&D Centre of the Company which has the
recognition of the Department of Scientific & Industrial Research, Ministry of Science &
Technology, Govt. of India. The Company's Quality system has been conferred with the ISO 9001
accreditation.

Within five years of its inception, Keltron had set up a production centre in every district of
the State. More than 5,000 people were engaged directly or indirectly by Keltron for the
manufacture of electronic goods.

The model of a State-owned electronics corporation was so successful that several other
States in India followed suit - launching their own electronics corporations. Over the years, Keltron
has built up a strong infrastructure spread over 7,00,000 sq. ft. of built-up area. Equipped with
computer-based facility for system design & engineering, and software development tools for
embedded systems, Keltron today is fully geared to offer high quality integrated manufacturing
solutions.

A strong infrastructure, enterprising team of people, innovative operational methods, accent

on quality and customer-orientation are the core competencies of the organization which has made
things happen all these years. Keltrons expertise in high quality manufacturing is the direct result of
the highly skilled, multi-disciplinary team of graduate engineers, project managers and a skilled
workforce with a proven record of accomplishment in complex precision manufacturing. Currently,
Keltron employs a work force of 2000 of which 400 are Engineers who possess extensive hands-on
experience in technology integration and adoption, high-tech manufacturing operations and in
managing turn-key projects. Manpower at Space Electronics section has been specially trained at
Indian Space Research Organization (ISRO) in high-reliability soldering, harnessing and QC.
Keltron also provides technical manpower to major organizations like ONGC and VSSC, and
collaborators like Hitachi, Japan.

Ensuring quality is a continuous on-going process at all production units. Each facility has a
Quality Department whose business is to see that all quality norms are strictly adhered to in the
manufacturing process. The manufacturing centres at Thiruvananthapuram, Aroor (Near Cochin),
Kannur and Kuttipuram (In Malappuram) are ISO9001:2000 certified. Inspectorate of Naval

11
Armament (SINA-T), has implemented their customized quality systems at Keltron Equipment
Complex, Trivandrum. The manufacturing plants for Capacitors, Crystals & Resistors have been
granted LCSO approval. To meet the stringent quality requirements of ISRO, ESD-control
measures have been strictly adopted at the specified areas. Keltron has an All India Sales Network
in place with full-fledged Marketing Offices in Mumbai, Delhi, Kolkata, Chennai, Bangalore,
Hyderabad, Ahmedabad, and Thiruvananthapuram to provide the quickest possible service to
customers.

Today we are living in a technology-driven world where speed, Flexibility, intellectual

capital development, and networks have become the basis of value creation as connectivity and
interactive technologies pervade all business activity. In this technology-driven environment,
Keltron find the assimilation, adoption and integration of technology in creating innovative
solutions as the very basis of survival. Keltron’s success has been in marketing electronics work in
almost every aspect of daily life, since 1973. Keltron’s strength lies in the stable foundation and
experience built over the years, its strong human capital, its nationwide network and its ability to
adapt itself to change. With over a 30- year’s long track record as a manufacture of sophisticated
electronic devices and systems, Keltron presents itself in the global market as a one-stop-shop for
manufacturing, systems integrations, and after sales support in India.

The concept of women’s co-operatives in villages was emulated by various state

Governments like Punjab, Bihar, Manipur, Pondicherry and Uttar Pradesh. Keltron also trained a
number of unskilled girls/boys into skilled electronic equipment assembly operators enabling them
to work in women’s co-operatives and SSI units in Ranchi, Pondicherry and Imphal in 1981-82
period and in Lakshadweep’s in 1988. The company had achieved study progress during these
years.

NATURE OF THE BUSINESS

KCCL are the sole manufacture of electronic capacitors in Kerala. They are producing
various types of capacitors like radial capacitors, axial capacitors, can type capacitors, snap mount
capacitors and motor start capacitors. The company is also engaged in development of electrolytes.
It is business to business market the capacitors are widely used in TV sets, radio, tape recorders etc.
So that the present customers include major Indian manufactures like BEL,ITI,HCL,TATA
Telecom , BPL, Onida sharp, Videocon, Crompton Greaves and other small manufactures of
electronic equipment’s.

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 Keltron’s electrolytic capacitors are accepted by a wide cross section of customers like
electronic manufactures, professional equipment manufacture and defence establishment. KCCL
electrolytic capacitors is rated as the market leader. The quality of capacitors is endorsed by the
following type approvals obtained by the company, ESCO, CACT, C-DOT AND DGGS approvals.

Keltron’s capabilities lie in the following distinct areas:

 Availability of large pool of experienced technical manpower.

 Strong infrastructure and manufacturing experience.
 Commitment to quality.
 Access to top level technology support.

The products of KELTRON consist of a diversified field like:

 Aerospace Electronics
 Security Surveillance Systems like CCTV systems, Attendance/Access control systems,
security electronic products
 Intelligent Transportation Systems
 Strategic Electronic products for Defence and Space departments
 Information Technology Solutions like Intranet and Inter-Office Communication solutions,
Web application development, Website hosting, IT Training, Support services
 ID Card Project — Electoral photo identity card, Touch screen Kiosks, SMART Cards, Bar
coded cards, employees identity card
 Power Electronics Systems — High-frequency IGBT converters, Rectifiers, Industrial
Battery Chargers, High Capacity Voltage Stabilizers, AC & DC distribution boards
 Electronic Components — Aluminum Electrolytic Capacitors, Motor Start Capacitors,
Metallized Plastic Film Capacitors, Ceramic Disc Capacitors, Carbon/Metal film Resistors,
Piezoelectric Quartz Crystals, Transducers, NTC Thermostats

VISION, MISSION& POLICY

 Vision

To be world-class, growth-oriented electronics corporation specialized in providing quality,

market focused products, services and cost effective system solutions to a large clientele and to
attain leadership position in the knowledge industry by training and utilizing the rich knowledge
capital available in Kerala, and creating a wide technology horizon for the development of
13
knowledge wares and intelligent systems”. KCCL was established with a vision to bring the benefit
of technology development in the economic progress of nation is being increasingly recognized.
Efforts are being made globally to develop technological strength and firm becoming more and
more competitive. The developing countries especially are showing a marked rise in the pace of
economic growth. The developing indicate that there is lightly to be shifted in economic power
towards the 3rd world countries in the 21st century.

Keltron’s corporate visions are:

 To emerge as a strong and self-reliant business enterprise with customer focus, profit
orientation and professional outlook.
 To build up Keltron as a model PSU in the sunrise Technology Sector of Electronics and IT.
 To function as a backbone of electronic industry in the state.
 To continue to play the role of nodal agency of government for accelerating the growth of
development of this core industry in this state.

 Mission

The company aims at maximum satisfaction to its customers by providing goods which meets
their requirements. The company is committed to achieve its goal with the involvement of
employees at all levels.

The company is to bring the benefit of technology to the service of the people and prosperity to the
society it belongs to. To advise, the company has established close international affiliation with
class leaders in technology and built up strong business relationship.

 Policy

The company is committed to achieve its goal with the involvement of employees at all levels
as defined quality management system, which is continuous reviewed to enhance its effectiveness
and updated to meet challenging needs. The company has a separate quality assurance department
to confirm their product standard, the quality assurance department function includes central
examination. The departments primarily concerned with ensuring quality of the product by way of
inspection are categorized as Raw material inspection, Petrol inspection and Final inspection.

RAW MATERIALS:

The main raw materials used for manufacturing AEC's are:

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  Etched aluminum foils 30 to 60 microns thick
 Formed aluminum foils and anodized etched aluminum foils 50 to 90 microns thick.
 Condenser paper, craft and Manila Hemp and Duplex
 Aluminum cans
 Lead tabs.
 Electrolytes
 Rubber bungs, EPDM, EPT rubber.
 Disc covers.
 Adhesive tape of high purity and able to withstand high temperature.
 PVC heat shrinkable sleeve.
 Aluminum wire
 CP Wire (Copper plated) and Plain aluminum foil.

TECHNOLOGY AND IN-HOUSE R&D:

The Department of Scientific and Industrial Research, Ministry of Science and Technology,
Government of India, have approved the in-house Research and Development activities of the
Company. The company acquired the technology for the design, development, manufacturing and
testing from its collaborators M/S NV Sprague Electromag, Belgium. The manufacturing process
was mainly semi-automatic and manual in nature which was subsequently upgraded by the
company by sourcing state of the art automatic machinery from Japan and Taiwan during the
expansions was undertaken. The company also updated the technology by obtaining information
from suppliers on the latest developments taking place in Japan, Korea, and Taiwan on
compactness and high temperature categories of capacitors with its in-house R & D efforts.

PLANT & MACHINERY:

The original machinery for manufacturing 18 million pieces per annum of capacitors was sourced
from M/S NV Sprague Electromag Belgium. Subsequently, for the expansion project the company
sourced automatic state of the art machinery from M/S JCC Engineering co., Japan, M/S CKD
Corporation, Japan and M/S Dons Enterprises, Taiwan. The engineers and technicians trained in
Japan and Taiwan on the machines oversee the repair activities. Technicians are provided on the
job training, sufficient stock of spare parts are sourced and stored from the suppliers for fabrication
of spare parts, and tools room facility is also available.

15
INFRASTRUCTURE:

Land Area 44100 sq. m.

Factory Area 9100 sq. m.

Connected Load / Captive power 2300 KVA / 1000KVA

No. Automatic machines 100 nos.

QUALITY POLICY:

The company aims at maximum satisfaction to their customers by providing goods that meet their
requirements. They are committed to achieving their policy with the involvement of employees at
all level through a well-defined quality management system, which is continuously reviewed to
enhance its effectiveness and updated to meet changing requirements.

AWARDS & RECOGNITIONS:

 National Productivity Award for 1988-89 under large scale electronic components units
from National Productivity council, New Delhi.
 ELCINA Award 1993 for excellence in Research & Development for work done in the
field of forming technology
 Department of scientific and Industrial Research, Ministry of Science and Technology,
Government of India approval for the in-house Research & Development
 ISO 9001-2000 certification from KPMG-QR, USA, only Electrolytic Capacitor
manufacture to have ISO 9001-2000 certification in India

SUBSIDIARIES OF KSEDC:

 Keltron Resistors Ltd:

Keltron Resistors Ltd (KRL) located at Keltron Nagar, Kannur District was incorporated on 29
April 75 as a subsidiary of Kerala State Electronics Development Corporation Ltd (KELTRON).
The Company was promoted to manufacture Carbon Film Resistors and Metal Film Resistors. The
company has an installed capacity of 217 million to manufacture Resistors of both type Carbon
Film Resistors and Metal Film Resistors in wattages 0.125, 0.250, 0.500, 1.000 and 2.000 per
annum. This unit manufactures Metal Film Resistors in both professional Grade and General-

16
Purpose application. KRL markets its products through its Holding Company which is the Sole
Selling Agent viz. Kerala State Electronics Development Corporation Ltd (KELTRON)

 Keltron Magnetics Ltd:

Keltron Magnetics Ltd (KML) is a subsidiary of Kerala State Electronics Development Corporation
Ltd (KELTRON), established in the year 1975 for manufacture of Electronics/Electrical
Components and equipment’s. The company is situated at KELTRON NAGAR, Kannur. The
products include Metalized Polypropylene Film Capacitors (MPP Capacitors), A.C Shunt/ L.T
Power Capacitor and Servo Controlled Voltage Stabilizers for Industrial and Defence application.

 Keltron Crystals Ltd:

Keltron Crystals Ltd (KXL) is a subsidiary of Kerala State Electronics Development Corporation
Ltd. The Company is located at KELTRON NAGAR in Kannur. The Company has been
manufacturing various types of precision piezo electric Quartz Crystals from 1976. It was the
second Crystal manufacturing Unit to be set up in the country.The Company has an installed
capacity of 2.084 million numbers of Quartz Crystals per annum. In the HSN classification, the
product is termed as Mounted Piezoelectric Crystals under the head 8541.00. The Companys
product range for Crystals is extensive and covers frequencies from 1 KHz to 175 MHz Quartz
Crystals are used for accurate control of frequency in electronic circuits and find application in
various types of communication equipment, microprocessor based systems and time keeping
devices.

THE AMALGAMATION

In the year 2008-09, the Company has undergone a transformation both structurally and
functionally. The Government of Kerala sanctioned on 27-05-2008 the merger of the four
subsidiaries of Kerala State Electronics Development Cooperation Ltd (KSEDC) at Kannur viz.
Keltron Resistors Ltd. (KRL), Keltron Magnetics Ltd. (KML), Keltron Crystals Ltd. (KXL), and
Keltron Component Complex Ltd. (KCCL) into one company. The amalgamated Company was to
function under the name, Keltron Component Complex Ltd (KCCL).

The amalgamated Keltron Component Complex Ltd is a major indigenous manufacturer of

Aluminium Electrolytic Capacitors, MPP Capacitors, Carbon & Metal Film Resistors, and
Piezoelectric Quartz Crystals. KCCL markets its products under the brand name “KELTRON” of
its parent Company. It has state of the art manufacturing facility with sophisticated automatic

17
machines from Japan and Europe. The Companys Quality System has been conferred with the ISO
9001 accreditation by KPMG.

FUTURE PLANS

The company continues the activity of reducing the material costs through value engineering,
internal R&D effort etc. Efforts are made to increase the volume of production and sales to
enhance its market share countering the competition from domestic as well as foreign
suppliers.The company had designed Motor Start Capacitors meeting UL Safety requirements
and the product has been certified by UL India Pvt Ltd. The company is hopeful of receiving
orders for these types of capacitors from manufacturers of compressors/motors who export their
end-products to Canada & USA.

In September 2008, the Company had commissioned a new plant for the manufacture of Elements
for MPP Capacitors and Power Correction Capacitors. It had also expanded its product range by
commencing the sales of Power Correction Capacitors in the range of 1KVA to 30KVA. The
Company is also planning to enter into the manufacture of Large Can Capacitors

SHARE HOLDING PATTERN AFTER AMALGAMATION

SL No. of Shareholding
No. Shareholder shares Paid up capital percentage

Kerala State Electronic

development Corporation
1 Ltd. 22315010 223150100 73.51

2 Government of Kerala 7300000 73000000 24.05

3 IDBI 141450 1414500 0.47

4 IFCI 60000 600000 0.20

5 ICICI Bank Ltd 58000 580000 0.19

6 LIC 50000 500000 0.16

18
7 GIC Ltd 40000 400000 0.13

United India Insurance Co

8 Ltd 10000 100000 0.03

9 SIDCO 42500 425000 0.14

10 Public 340665 3406650 1.12

TOTAL 30357625 303576250 100

BOARD OF DIRECTORS

NAME TITLE

C. PRASANNAKUMAR CHAIRMAN

Lt Col. PARESH AGARVAL MANAGING DIRECTOR

K. RADHAKRISHNAN DIRECTOR

U. V. PRAVEEN DIRECTOR

PRINCESS PARVATHY BHAI DIRECTOR

19
 PRODUCT RANGE:

TYPES:

1. Radial capacitors — Aluminium Electrolytic Capacitors

2. Axial lead type - Aluminium Electrolytic Capacitor

3. AC Motor Start- Alumiminum Electrolytic Capacitors
4. Large Can- Aluminium Electrolytic Capacitors
5. MPP ( Metalized Poly Propylene ) Capacitors

20
ORGANISATIONAL CHART

21
ABBREVIATIONS;

HOD: Head of The Department

SIC: Section in Charge

PLG: Planning

MFG: Manufacturing

PC: Production Centre

MKT: Marketing

FN: Finance

P&A: Personnel & Administration

PE: Plant Engineering

CAL: Calibration

R&D: Research & development

E&F: Etching & Forming

MAT: Materials

E&D: Engineering & Design

QA: Quality Assurance

EDP: Electronic Data Processing

22
 FUNCTIONAL AREAS

FUNCTIONAL AREAS AT KCCL

The various business processes, their interaction and sequences are identified by the nature of
business. Following business processes performed in the organization are classified into the
following departments;

1. Personnel & Administration Department

2. Finance Department

3. Marketing Department

4. Planning Department

5. Engineering & Design Department

6. Materials Department

7. Production Department

8. Etching & Forming Department

9. Plant Engineering Department

10. Calibration Department

11. Quality Assurance Department

12. Research & Development Department

13. Electronic Data Processing Department

23
 PERSONNEL AND ADMINISTRATION DEPARTMENT

Men, material, and machines are regarded as the three important factors of
production. Human beings constitute the organization at all levels and are regarded as
the chief dynamic factor of production.

The basic job of management of any business is the effective utilization of available human
resource for the achievement of business objectives. The human resource in an
organization should be motivated and managed with utmost care to inspire, encourage and impel
them to contribute their maximum for the achieve of organizational objectives. They are
considered to be the valuable asset because it is people which make other assets move

In Keltron there is a specialized department known as personnel and administration,

which sees to both personnel and administrative functions.
The employees experience rangefrom 12 to 25 years. The company has
a Human Resource Development program whereby training classes on the job is given. Key
technical personnel are trained by collaborators of suppliers of machinery to oversee on the
processing of the capacitor and maintenance of machinery.

KCCL has a very efficient human resource and administration department. Manager is
the staff officer in the organization. He gives advice to the deputy administration officer,
Assistant personnel; officer and supervisor. The deputy administration officer gives direction to
the security officer. The security guards are under the security officer. There are two assistant
personnel officer. KCCL has 266 members on its roll of which 52 are executives and 214
workman.

24
 DEPARTMENTAL CHART-HUMAN RESOURCE AND ADMINISTRATION

HOD (P&A)

PERSONNEL OFFICER
ADMINISTRATIVE OFFICE

TYPIST SECURITY TRANSPORT ESTATE

ASSISTANTS HELPERS

GUARDS DRIVERS MAZDOORS &

JANITRESS

FUNCTIONS

The main functions performed by the Human Resource &Administrative Department in KCCL
are as follows

 Man power planning

 Recruitment and placement of employee
 Co-ordination and training of employees
 Keeping personal records of employees
 External training to employees
 Time keeping
 Performance appraisal
 Promotion of employees
 Wage administration

25
  Administration of standing orders and adopting welfare measures

MAN POWER PLANNING

For meeting the requirements of employees, management must decide beforehand as to

what type of men is to be recruited and in what number are required. The first problem is solved
by job analysis and the second problem is tackled through manpower planning. A proper and
systematic man power planning programs require proper foresting and planning for future. It
should consider developing manpower requirement for the whole organization, to create and
evaluate the man power inventory and to develop required talents among the employees selected
for promotion.

RECRUITMENT AND PLACEMENT

Recruitment is the process of searching for the prospective candidates for theemployment and m
otivating them to apply for the same. This process of searching is known as recruitment.

KCCL is a govt. company, recruitment of candidates is done through employment

exchanges. As and when a vacancy arises, Personnel administration department notifies it to
objectives employment exchange. If suitable candidates are available with the latter body, they
issue, a NAC. Then personnel department publishes vacancies in leading newspapers. After
receiving the applications from the candidates, the department goes for scrutinizing them. The
company calls the selected candidate for interview. For this the company has a selection board,
represented by the concerned department head, a nominee of the govt. of Kerala and the
Personnel manager. This board conducts interviews and selects suitable cm candidates. Then the
company gives appointment order to the selected candidates along with terms and conditions for
appointment. If the person is willing to abide by the terms, he is directed to sign the return one of
the copies of the order.

26
TRAINING

In KCCL internal as well as external training is given to employees. Fresh hands will be selected
as trainees for a period of one year. For existing employees, it is conducting refresher training by
way of lectures, work educational classes, external training etc.

A. Orientation training

There are two phases of induction training program. The 1st is generally
conducted by the personnel department. It is concerned with giving the employee a
friendly welcome, briefing him in the matters concerned with the company’s
background, products, health and welfare plans etc.
The head of the department under whom he has to work conducts the second phase of
induction program. The employees are given information regarding production, work
rules, working condition.

B. Refresher training
On first appointment, employees are initially given on the job training. Due to
technological development and improved techniques of management and production the
training initially given will become out of date creating the necessity of giving new
training. For this Regional Worker’s Training Education Centre officers come to KCCL
and give training.

PERFORMANCE APPRAISAL

Performance of each executive and employees is evaluated through annual appraisal forms. In
case of non-executives performance appraisal forms are to be filled at the time of promotion of
work man. Promotion is given on the basis of of the scores of the appraisal form.

ADMINISRATION OF STANDING ORDERS

In Keltron, Standing Orders Act 1946 is applicable to workmen in the industrial employment.
This Standing Order defines company management, workmen, trainee, leave, salary etc. It is
divided into different chapters namely service, workmen classification address and other

27
particulars, probation, seniority, temporary appointment, transfer, recognition, promotion, salary,
increment, leave etc.

WAGES AND SALARIES

The three categories of employees, i.e., Executive’s, supervisors and Workman are covered
under MOS signed in April 1996. According to this MOS a senior worker will get a monthly
minimum CTC Rs. 30000/- p.m. while a newly inducted workman will get CTC of around
20000/- p.m. Similarly the supervisory category will get a CTC of around 33000/- p.m. the junior
executive will get around 41000/- p.m. And the senior executive will get 58000/-p.m.

The DA pattern of workman is different from those in executive and supervisor category. The
DA workman are based on the consumer price index at all India level. The DA of executives and
supervisors will be based on Kerala Government norms.

ALLOWANCE AND BENEFITS

Dearness Allowances

It is the allowances given to the ordinary workers, it is sanctioned January &July in each
year. It is fixed as per All India Consumer Price Index, 1960 series.

House Rent Allowance

This is the allowance will be appointed to the scale of pay.

Shift Allowance

The general shift is from 8:30 am to 4:30 pm and other three shifts such as 7:00 to 3:00,
3:00to 11:00 and 11:00 pm to 7:00am.The employees who are in the other three shifts apart from
general shift are given compensation known as shift allowances being Rs. 25.

Uniform and Washing Allowance

Will be given as per the rules.

28
Canteen Allowance

Canteen Allowance is applicable to employees working in marketing officers and site

officers outside Kerala and in city or area, sales in within Kerala for on attendance of 15 days in
a month.

Funeral allowance

Will be given as per the rules.

Conveyance Allowance

It is the allowances used to meet conveyance for performing office duties. Disabled
persons Rs. 800/- pm.

Fitment Benefit

Will be given according to the rules.

House Rent Allowance

This is an allowance given to the employees, on the basis of scale of pay. The basic pay up to
18000/- the allowance being Rs.840, and above 18000/- the allowance is Rs.1120.

Food subsistence Allowance

There is reduction in the price of food by the company to

the employees. Theemployees should give only one-fourth of the cost of the food. Daily a cup of
tea is free to all employees.

Medical Reimbursement

All employees are eligible for medical reimbursement scheme.

This scheme also includes family members. The amount of benefit is given on theterm of service
of the employees.

29
PROVIDENT FUND

It is the fund that is provided in the future. The fund is credited by a part of the
amount deducted from the salary of employees every month at a ascertain rate. When the
employees retire from his service, he received the full amount standing in the credit of his fund
which includes periodical interest added.

WELFARE MEASURES

 Washing, toilet and bathroom facility

 For drying clothing
 Facility for sitting
 First aid equipment
 Canteen
 Crutch

GROUP INSURANCE SCHEME

The group insurance scheme is applicable for every employee working in the
organization

WORK FORCE

Total Employees : Around 700

Permanent Employees : 315

Employees on Contract : 70

Casuals and Apprentice

TRADE UNION

Following are the trade unions in KCCL

 Keltron Employees Association (KEA)

30
  Keltron Employees Union (KEU)
 Keltron Employees Organization (KEO)
 Keltron Employees Congress (KEC)
FUTURE PLAN
 To recruit more fresh talents for upcoming opportunities
 Provide more training facilities to employees
 Planning better performance appraisal program
 Giving more employment opportunities to local people

FINANCE DEPARTMENT

Finance is the life blood of any business organization. It mainly concerned with acquisition and
use of funds by the firm. Adequate amount is always necessary for any type of business. This
business process regulates all types of commercial transaction.

Finance is the source of money. It studies the principles and match methods of
acquiring, administering and controlling the use of funds in business. Economics as defined as
study of efficient use of scare resources to fulfill the socially defined ends is closely related to
the decisions made by the firm in the area of production, finance and marketing. Finance is there
for an aspect of the economic theory of the firm.

The nature of financial management refers to its function, scope and objectives. The
scope and coverage of financial management have undergone fundamental changes. In the early
year of its evolution it was regarded as a branch of economics relating to the raising of funds.
But now the current literatures pertaining to its growing discipline the scope has changed
tremendously so as to include in addition to the raising of funds, the efficient use available
resources. This concept is universally accepted and recognized.

Financial management is concerned with planning, organizing, directing and

controlling financial activities of an organization. It is concerned with source and use of the fund.
It is related with proper management of fund.

31
FUNCTIONS OF FINANCE DEPARTMENT

 Preparation and maintenance of accounts related documents and records

 Recording of bank transactions like cash withdrawals, maintenance of details of check
payments etc.
 Maintenance of commercial accounts, income tax
 Payment of company bills viz, telephone, electricity and monthly returns of professional
tax, sales tax, and CST & VAT

KEY FINANCIAL ACTIVITIES

1) Financial analysis, planning and control

 Assessing the financial performance and condition of the firm

 Forecasting and planning the financial structure of the firm
 Instituting appropriate system of control to ensure that actions of managers are concurrent
with the goals of the firm

2) Management of firms asset structure

 Determine the capital budget

 Managing the liquid resource

 Establishing credit policies

 Controlling the level of industries

 Debt and dividend policy

 Choosing the special instrument of financing

 Negotiating and developing relation with various suppliers

On the basis of current assets value SBI-Kannur and Catholic Syrian Bank- Kannur
give cash credit facility to Keltron.

32
 DEPARTMENTAL STRUTURE OF FINANCE DEPARTMENT

HEAD OF THE
DEPARTMENT

PERSONAL SECRETARY

GENERAL ACCOUNTANT SALES ACCOUNTANT COSTING

OFFICER IN CHARGE OFFICER IN CHARGE OFFICER IN CHARGE

CASHIER ACCOUNTS ASSISTANT ACCOUNTS ASSISTANT TYPIST ACCOUNTS

HELPER

The companys expenditure has been classified into the following heads;

 Materials consumed
 Personnel cost
 Financing charges
 Selling and distribution heads
 Excise duty
 Other operating expenses
 Miscellaneous expenditure

33
 ASSOCIATED BANKS

 State Bank of India, Kannur

 Catholic Syrian Bank, Kannur

 Syndicate Bank, Kannur

As 80% of the raw materials for the production of capacitors are imported, Keltron has to
provide Letter of Credit. The details of the banks that gives LC for this purpose is given as;

NAME OF BANKS CREDIT LIMIT (in lakhs)

State Bank of India, Kannur 525

Catholic Syrian Bank, Kannur 175

AUDITING

The company has efficient external auditors. Moreover, there is an efficient internal check
system also. Besides this statutory auditor appointed by the company law board audits the
accounts and records of the company. After completing the audit, copy of the report is sent to the
Accountant General Trivandrum and also presented before the shareholders. If there are any
comments from the auditors shareholders, the company should provide sufficient explanation to
these comments.

The audit in Keltron consists of;

 Internal Audit

34
  Statutory Audit
 Audit of Controller and Audit General of India

CONTROL

Budget for a succeeding year is prepared and presented to the BOD during January or February
each year. It is prepared on the basis of sales projection provided by marketing department. Raw
materials requirement will be estimated on the basis of comparison with previous years figures.
Total budget is split up into four quarters and procurement of materials capital and other
expenses are controlled on the basis of these allocations.

DIVIDEND

The company has regularly paid dividend to its shareholders since 1985-86. The last time it paid
a dividend of 10% in year 1993-94. Since then it is not able to pay dividend.

RECORDS MAINTAINED

 Cash book
 Bank book
 Journal book
 General ledger
 Asset register
 Purchase journal, Sale pay book, Creditors ledger

MARKETING DEPARTMNENT

Marketing is the performance of business activities that direct the flow of goods and
services from the producer to the customer. It is system of interacting business activities
designed to plan, promote and service existing and potential customers. The main function of
marketing is to view the customer as the very purpose of business. It emphasizes on
identification of a market opportunity and fulfilling the needs of customer. Without marketing
there is no consumer and without the customer there is no use for the product or service the
company is producing.

35
 Keltron has already created a name of its own in the industrial market. The
marketing department act as a guide and lead the company’s other department in developing,
producing, fulfilling and servicing products and services for their customers. The marketing
activities progress under the direct control of the holding company KSEDC, Trivandrum. The
purpose of the department is to lay down procedures for marketing, sales administration,
managing customer interface and maintaining dispatch of products. The process includes price
list, quotations, order receipt and acceptance, order processing dispatch, amendment to contract,
status review, customer feedback, customer claim service etc. being a public sector undertaking
Keltron is answerable to the Government of Kerala.

At KCCL, the marketing department acts as a guide, and lead the companys other
departments in developing, producing, fulfilling, and servicing products and services for their
customers. Communication is vital, and the marketing department typically has a better
understanding of the market and customer needs. The goal and guidelines set by the Marketing
Department are in line with the vision and mission of the company. The upper management is
also involved in and endorses co-operation by all departments in following and implementing the
plan and integrating a consistent message into all communication channels.

OBJECTIVES

 To generate maximum business at possible price

 Speedy realization of payments
 To encourage dealers for doing more business and for doing immediate
payment by offering turnover discount and cash discount
 Optimum satisfaction to customers through timely supply of products, quality products,
competitive price possibly at international level.

36
 DEPARTMENTAL STRUCTURE OF MARKETING DEPARTMENT

MARKETING MANAGER

SALES OFFICER SALES OFFICER

SALES SALES SALES SALES

ASSISTANT ASSISTANT ASSISTANT ASSISTANT

ELEMENT OF MARKETNG MIX

1. Product

Marketing department ensures that the product is of the same grade as specified by the
customer and meets the quality standard. Currently 7 main types of aluminium electrolytic
capacitors are available.

2. Price

The prices are based on pricing policies taken by the company based on the market condition.
The pricing decisions are taken by the Marketing Department after studying the market condition
and also comparing the competitors price.

3. Promotion

It deals with advertising and sales promotion for the product. Since the company goes for
Industrial marketing department, mainly on electronic segment, it concentrates on direct
marketing as a means of promotion that enjoys the advantage of two-way communication. KCCL

37
has corporate marketing offices in Trivandrum, Kannur and has branch offices in Mumbai,
Kolkata, Ahmedabad, New Delhi, Chennai, and Hyderabad. And they also have agents in most
of the places in India.

4. Packaging

Different type of packing is done for different type of capacitors. Radial & Axial type capacitors
are generally bulk packed in Polythene bags which are heat sealed to avoid direct atmospheric
exposure. Individual primary packing in Polythene bag is provided with label that carries
outgoing Inspection Report No., Capacitors series, Capacitors value, working Voltage, Capacitor
Tolerance and Capacitors size, Capacitor Part No., Temperature, Quality, and date of Packing.
Sealed bags are then packed in cardboard for shipment.

Motor start and large Can electrolytic capacitors are generally packed in primary
cardboard by employing suitable separators to avoid damage during transits. The primary cartons
are then put into mother cardboard cartons before shipment.

5. Place

In this industry the place is not that much important. The production plant is set up in Kallissery,
a rural area in Kannur.

MARKETING ACTIVITIES IN KCCL

Keltron carries out the marketing of KCCL on contract basis. As holding, KSEDC carries out the
function of marketing on commission basis (charging 7.5% commission). All those years the
exports were done through ET&T department, but from 1997 onwards the export is done directly
by KSEDC.

AGENTS

Agents are appointed by KCCL because it is not possible for the company to cater to the need of
all the customers who are situated at various cities that are far from their branches. Agents are
appointed as per the recommendation made by the branch officers to the management. Criteria
for appointment of an agent are the following:

38
An agent should have a business in the potential area or in the particular industry. The person to
be appointed as the agent should be financially strong. The agent should have sufficient technical
knowledge to deal with customer problems. The agent should have sufficient market as well as
office infrastructure like fax, telephone, warehouses etc. The person appointed as agent should
have good contacts in the industry.

After satisfying the above conditions the appointed agent enters into an agreement with
the company that is signed both by the agent as well as the vice president and the marketing
manager of the company.

CASH DISCOUNT

For quick and better cash flow, cash discount at 3% may be offered to the customers for payment
by DD/Local Cheque against delivery/receipt of the materials. The OEMs/dealers, whose earlier
bills are outstanding for more than 75 days from the date of invoice, will not be eligible for cash
discount.

ADVERTISEMENT

The products manufactured by Keltron are not consumer goods as they are used for further
production, so it has no requirement to spend huge amount on advertisements. Advertisement
thus given is, dealer shared advertisement. Dealers are allowed to release advertisement in
newspapers and media on shared basis. Company would share 50% of the advertisement cost
subject to 0.5% of the turnover achieved in respective financial year.

DISTRIBUTION CHANNEL

As any other firm Keltron also uses both direct distribution network and dealer network. Earlier
emphasis was given to direct network, but now-a-days majority of the sales is through dealers.
There are authorized dealers for the company who carry out the required sales operation.

MARKETING PLAN AND STRATEGY

Every year Marketing Department fixes a yearly and quarterly target with the authorized dealers
by consulting the production regarding the likely demand for the product. Further it collects

39
information from its customers and on this basis the company may modify the production
requirement to suit the customers requirement also segmentation of the market is done on the
basis of customers and applicability. This process helps the company to pick the best market
where it can be a tough competitor.

CUSTOMER COMPLAINTS

In order to attain maximum customer support importance is given for after sale services. Keltron
also takes keen interest in diagnosing and solving customer complaints.

CUSTOMER SATISFACTION

Customer satisfaction is measured through analysis of customer feedback and complaints, reports
of marketing personnel, questionnaires, survey of OEMs and other suitable methods.

GUARNTEE AND WARRANTEE

One-year guarantee is given to OEM and Government units. In case there are any defects or
shortage in the quantity the company replaces it and / or provides full quantity. A complaint
register is provided to locate complaints.

COMPETITORS

The major competitors in India for Aluminium electrolyte capacitors are Punusumi India Ltd.,
Uptron, Webelson, Philips, Incap, Elcap, Elnet, etc. Indigenous competitors are not a threat to
KCCL. But, due to liberalization of economy and bringing capacitors under OGL, the company
has to compare with international brands like Rubycon, Panasonic, Samsung, Elna, etc.

BRAND NAME

The brand name of the companys product is KELTRON

PACKING

The capacitors are generally packed in the following ways;

 Bulk packing polyethylene bags

 Taped Ammo box packing

40
 PLANNING DEPARTMENT

Planning is the first step in the direction of setting of an enterprise. The process in the
planning includes the decision taken in advance, when is to be done and what purpose is to be
done by considering all constraints.

In Keltron planning is done in all department on the annual intend from top
management, marketing department and planning department will prepare an annual
budget based on the marketing trend, demand and price existing in the market. After getting the
approval of Managing Director the Annual Budget is send to the marketing department and other
proposed departments other than preparing the annual budget the planning department is also
engaged in preparing a quarterly and monthly budgets to meet market
requirements. They arrange short-list; in which non-availability of materials listed initiative
taken by the purchase department is highlighted. Purchase department makes
arrangement for providing materials and after receiving materials work order is issued to
production department. After inspection the Raw Materials they are given to stores which would
be then put in production.

OBJECTIVES

The work order prepared is analyzed and the pending work order list should be given. Material
shortage list should provide,

 To reduce wastage as possible

 To attain maximum productivity

 The work order prepared is analysed and the pending work order list should be given

 Material shortage list should be provided

41
 DEPARTMENTAL STRUCTURE OF PLANNING DEPARTMENT

HOD

TYPIST/ASSISTANT ASSISTANT ASSISTANT TYPIST/ASSISTANT

PLANNING COMMITTEE

Planning committee include;

 Head of the planning department.

 Head of the marketing department
 Head of the production department
 Head of the personnel department
 Head of the finance department

First a monthly budget is prepared and given to each department and from the concerned
department further implementation takes place every week a meeting is conducted of all
department heads with the Managing Director. The main objectives is to highlight the problem
faced by each department, to determine objectives, policies and strategies to finalize a feasible
solution to the problem.

DUTIES

Main duties are follows;

 Prepare the plan based on the yearly marketing, budget and productions capacity
 Work out material input requirements on the basis of plan
 Prepare monthly plan for production
 Authorize production based on the plan through work order procedure

42
  Training of personnel in the department
 Monitor and control use of material of production operation.

ENGINEERING AND DESIGN DEPARTMENT

Engineering Department will receive the external document or drawings. These drawings
are controlled and given to the concerned person for reference. The drawing received from the
customer, are converted into stage drawing and further manufacturing process layout.

For the modern products it is useful to document and analyse the design logic. This
means charting with the desired product attributes and then identifying the necessary
characteristics for raw materials and process steps. Such an approval goes for a name as
engineering.

In KCCL, the Engineering and Design Department is concerned with preparing bill of
materials, altering materials, giving technical support to manufacture and giving designs
according to the order to suit the customer requirements.

43
DEPARTMENTAL CAHRT-PLANT ENGINEERING DEPARTMENT

MECHANICAL
MAINTENANCE

ELECTRICAL
MAINTENANCE

ELECTRONICS
PLANT MANAGER
MAINTENANCE

PREVENTIVE
MAINTENANCE

CICVIL MAINTENANCE

44
 MATERIALS DEPARTMENT

Stores and materials department is one of the most important departments in an industry.
This department facilitates the smooth functioning of production. The main objective of this
department is to procure raw materials / components / consumables as per procurement plans
based on production requirement schedule. They also procure indirect parts / products
consumables or services needed for all other processes. This department receives and preserves
the raw material till it is issued for manufacturing.

In KCCL, the Purchase Department, Raw material stores, and Finished Goods stores
come under the Material Department.

FUNCTIONS

 Purchasing of raw material, components, consumable space capital, goods at

least cost
 Vendor evaluation and selection
 Maintenance and proper use of purchasing materials
 Receipt, storage, issue, and stock control of materials
 Training of persons in department
PURCHASE DEPARTMENT

The term purchasing in a narrow sense refers merely to the act of buying an item at a price. A
broader understanding makes it a managerial activity, which goes beyond the simple act of
buying and includes the planning and policy activities covering wide related and complementary
activities. Purchasing is the key stone of material management. The purchase committee includes
head of material department, QA department, engineering and design department, R & D,
finance department with MD.

OBJECTIVE

Purchase of quality input in right time. Cost reduction through product purchase.

45
ACTIVITIES OF PURCHASE DEPARTMENT

 Identification of the requirements

 Selection of proper source of supply
 Deciding on quality and quantity
 Finalizing delivery schedule and price
 Selecting the supplier
 Placing the purchase order
 Arranging transportation of material and goods
 Receiving the goods and materials and sending them to the stores
 Accepting the goods after getting quality approval

IMPORT OF MATERIALS

Planning department forwards the material requirement to purchase department on periodic basis
(yearly/half yearly). Then the purchase department floats enquiry to the established vendor. On
receipt of the quotation, a comparison of price and other terms are made, and purchase is
finalized on the most competitive price tendered. The dispatching is generally by sea. In some
cases where the materials call for urgency, required import is resorted by air. The port of
destination is Chennai and consignment are cleared through clearing and forwarding agents
appointed there. Payment is by irrevocable letter of credit/sight, DD remittance. The raw
materials imported by Keltron are eligible for concessional rate of customer duty for which they
submit details in a specified format through Deputy Commissioner of Central Excise Kannur to
commissioner of customs Chennai. The forwarding agents clear the consignment at Chennai port
and dispatch the same to Keltron. The terms of price as per Reserve Bank of India regulation is
free on board. So, insurance is converted by Keltron and in the event of damages/loss if any, in
transit, claim is effected to the underwriter for getting the loss settled.

RAW MATERIALS STORE

After inspection, the purchased materials are taken into stores for preservation, if they are meant
for stock. Non-stock items are directly taken to assembly lines from inspection. Preservation,
storage can contribute to effective operations.

46
PURPOSE

1. To establish and maintain storage proceedings

2. Receipt of correct materials

3. Proper storage of materials without deterioration in quantity

4. Issue of correct materials for use

SCOPE

 Raw materials, Components, Consumables for production in capacitor as well as

E&F plants of KCCL
 General stores
 Spares
 Equipments, tools etc

INVENTORY CONTROL TECHNIQUES

ABC ANALYSIS

It is not desirable to keep the same degree of control on all items. The firm should pay
maximum attention to those whose value is highest. The firm should therefore classify
inventories to identify, which items should receive the most effort on control. The highest value
items are classified as A class, and would be in tightest control. The C class represents the least
value and would be under simple control. B class items fall between the two categories and
require reasonable attention and management. The items falling in A class are Aluminium foil,
Tissue paper, Condenser, Chemicals, and paddles, etc which are given most care.

VITTAL, ESSENTIAL, DESIRABLE (VED

MAJOR RAW MATERIAL

Aluminium foil, Robber bung, Tab lend, Sleeves PVC, Metro phenol, Bitumen, Solder wire flex,
Brass bullet, PVC tubes, Clamps, Label, and Gasket.There are mainly 299 major raw materials

47
used for different production processes. The material handling equipment used in stores are
Trolley, Cash, Pulley block and Drum trolley.

LOCATION

The Raw Material stores is in two locations — one is attached to capacitor production plant and
other is in the Etching and Forming building

STOCK CONTROL

 Stock control of spares, general items and consumables is done by stores

 Bin cards are marked with Reorder Level and Reorder Quantity

STOCK VERIFICATION

Materials are verified physically at least once in a year against records

SCRAPS MANAGEMENT

Scraps arising out of production processes are consolidated at scrap yards in different locations
as marked for each. All scraps are disposed of on sealed tender or otherwise periodically.

SUB CONTRACTORS

It may sometimes become necessary to get some specific job work done like sleeve printing etc.,
through outside source. In such cases, the planning department issues work orders and then the
contract is given by the materials department to one of the sub-contractors on the basis of the list
they maintain. The materials are received by Keltron from the sub-contractors and sent for
inspection. The bill of the party is sent to accounts for effective payment.

SAFETY MEASURES

Petroleum, Oil, and Lubricants are stored in separate area. High speed diesel oil is stored in
overhead tank in a separate fenced area. Stores door is sealed at the close of working hours with
signature of the OIC on gummed paper pasted on the door, which is checked at time of opening
next day.

48
RECORDS MAINTAINED

a) Store Requisition Note

b) Bin Card

c) Store Return Note

d) Material Gate Pass

e) Purchase Requisition

ORGANISATION CHART OF RAW MATERIALS STORE

FINISHED GOODS STORE

Raw materials after passing through various operations is converted to finished goods that are
ready for sale. These goods are stored in the finished goods store. The First in First out (FIFO)

49
method is used at the time of dispatching. If the buyer rejects any batch, the finished goods are
taken to Raw material department and the information is sent to QA department and then re-
credited to the FG stores.

FUNCTIONS

 The produced capacitors after being passed by the QA department are sent
to stores with delivery note.
 The primary packing is done, and the cartons are labelled, and the cartons
are placed in the specified Bin according to the location.
 For accounting purposes, a copy of the delivery note goes to EDP
department.
 The EDP prepares the packing list. Based on the packing list the materials
are taken from their respective location and secondary packing is done and
finally the materials are made ready for dispatch.
 The invoice for the goods to be dispatched is prepared.

Documents for dispatch;

 Forwarding note to transport

 Declaration
 Sales tax form
 Copy of invoice
 Packing list
 Materials are then transported, if required by the customer
 Receive a lorry receipt or parcel way bill, through courier or local hand delivery
 Ensure that the materials are received on time by the consigned party
 Maintain documents pertaining to central excise and submission of monthly returns to
Central Excise authority.

50
ORGANISATION CHART OF FINISHED GOODS STORE

51
FLOW CHART OF FINISHED GOODS STORES

CREDITED MATERIALS COLLECTING FROM MANUFACTURING DEPARTMENT

VERIFYING PRIMARY PACKING AND LABELING

QUALITY CHECKING, SEALING, LOCATING

ISSUING OF MATERIALS, CHECKING, SEALING, STRAPING

CHECKING OF INVOICE AS AGAINST DBA FORWARDING NOTE GATE PASS

DISPATCHING

PRODUCTION DEPARTMENT

Production is the process of conversion of a set of inputs into a specified set of output, either in
the form of finished goods or services, meeting the quality and thus achieving the quality policy
of an enterprise. The inputs are men, materials, capital employed, information and energy. The
production or the manufacturing is the business activity of an industrial unit on which the
activities of other departments work upon. The main aim of this business system is to produce
the end products either in the form of goods or services economically, utilising the available
resources, and thus satisfying the customers for which they are meant. This process starts when
once the department receives the order for production.

According to the nature of the market, the marketing department of KCCL analyses the future
demand for the capacitors and takes decision along with the managers of Planning &Control and
the Production Department. The demand for the capacitors wont be the same throughout the

52
year. It may differ for monthly schedules. The work order is issued to meet the specific demand
of the customer. A batch production order is issued for keeping the goods in stores pending
orders or when several customers order for the same product.

The machinery used for the production purpose is fully automated.

DEPARTMENTAL CHART OF PRODUCTION DEPARTMENT

VARIOUS STEPS INCLUDED IN PRODUCTION OF

CAPACITORS

To produce capacitors with the required specification, the raw materials like cathode & anode
foil, electrolyte etc have to undergo certain stages of production. The various steps are follows:

SLITTING

Slitting is a section where the etched raw materials are cut length —wise based on work order
given from Planning Department. After slitting process the material again goes to the quality
desk where the quality inspector checks and approves it.

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 PRINTING

In this section the printing in various colour sleeves are carried out. A brief detail about the
capacitors like volt, name, value, brand name etc.., are printed on a PVC strip or a colour sleeve
that v will be stuck to the capacitor.

STITCHING AND ROLLING

Stitching and rolling are two different processes. There are machines which can perform both the
work simultaneously or different machines to perform these two-different works
individually.Stitching is the process by which, a thin needle is stitched to the anode and cathode
foil. The stitching will be of star formation. This is because the star formation will increase the
surface area rather than normal or circular stitching. Now these two needles act as the terminals
in the capacitor.

While rolling, the anode foil is separated with a special thick paper and rolled according to the
specifications needed for different capacitors. The length and the breadth of the foils to be rolled
will be different and this defines the character of the capacitors. i.e. for higher volt & higher
temperature capacitors the foil will be broader and longer than that of the low volt & temperature
capacitor.

IMPERGNATION

The rolled-up form will not have any value or specifications. For this stitched and rolled
capacitors are kept in a solution which is called the electrolyte. This process of keeping the
capacitor dipped in the electrolyte is to get the desired value. The time required for impregnation
defines the voltage of the capacitors it will take at least two hours.

SEALING SLEEVING — HOT SRINKING AND ASSEMBLING

After impregnation, the above semi- finished goods are sent for sealing and sleeving. The
impregnated capacitor will be manually put into an aluminium can with one end open. This open
end will be closed using a rubber bunk. The rubber bunk will be having two tiny pores through

54
which the two terminals come out. This entire process is called sealing.After sealing, the
capacitors are sent for hot shrinking. The printed colour sleeve is rolled over the capacitor and
pressure is given over it along with temperature so that the sleeve remains stuck over and around
the can of the capacitor.

AGEING AND TESTING

Ageing is the testing process through which electric voltage is given to the capacitor. Then it is
tested to see whether it is working properly and has the right voltage and there is no short. The
sealed coil goes for ageing and then it is tested. If the capacitor is good, it is sent for Quality
Assurance. If it is tested bad then if re-ageing is possible, then re-ageing is done, and it is tested.
If it cannot be re-aged, it is rejected. Ageing and testing can be done both automatically and
manually the capacitors are put in a trolley and loaded, voltage is passed. Then it is tested.
Sometimes capacitors are tapped. This is manually done for computer motherboards etc; only
customer requirement.

QUALITY CONTROL

After the testing of capacitors, it is sent to the Quality Assurance Department. So that it can be
checked for proper functioning to get 100% satisfaction from customer

PACKING

Only passed items are packed into multiples of hundreds and sent to finished goods store. It may
be packed according to customers requirements like tape packing, bulk packing etc.

STORE

The finished capacitors are then send to store, from where it is sold to dealers on the first come
first serve basis i.e., FIFO method.

WASTE MANAGEMENT IN KCCL

In KCCL the overall percentage of waste in production is just 2%. To bring the waste to

55
minimum, KCCL has formed a separate Material Review Board, under the chairmanship of
Production Manager and one representative from Research and Development, Quality
Assurance, and Planning Departments. The main aim of this MRB is to avoid scrap by reviewing
the reviewing the rejected capacitors through various developments. The board may recommend
further process to make those rejected into acceptable products. But still there may be some,
which can’t be reprocessed, and they are rejected as scraps.

FLOW CHART OF PRODUCTION

STICHING &ROLLING

IMPREGNATION

SEALING

SLEAVING &HOT SHRINKING

AGEING &TESTING

FINAL QUALITY CONTROL

PACKING

STORE

56
 ETCHING AND FORMING DEPARTMENT

Keltron also entered into etching and forming of aluminium foil as part of diversification,
modernization, and expansion plan.

ETCHING

Etching is the process by which the effective surface area of the anode foil is electrochemically

etched to increase the surface area by about 50 times for most conventional foil. In recent years,
research and development is done in this department and considerable increase in surface area is
obtained that has resulted in capacitors of compact size.

FORMING

In making capacitors the first process is forming. It is an electrochemical oxidation process to

develop aluminium oxide polarized barrier on the etched foil at different volts to make use of the
capacitors to different working voltage.

ETCHING METHODS

The following are the etching methods followed:

 AC etching
 DC etching
 Superimposed DC with AC

RESPONSIBILTY OF HOD

 To ensure that suitable equipments are used for process.

 Marinating production equipment
 Control and co-ordinate function of chemical laboratory
 To issue documented procedure containing working instructions

57
DEPARTMENTAL STRUCTURE OF ETCHING AND FORMING
DEPARTMENT

HOD

FORMING OF CHEMICAL AND MAINTENANCE

ALUMINIUM FOIL PROCESS CONTROL LAB

EFFLUENT
DEIONISED WATER
TREATMENT
PRODUCTION
PLANT

CALIBRATION DEPARTMENT

Measurements are made using a variety of instruments ranging from very simple to extremely
sophisticated. Calibration in measurement technology and metrology is the comparison of
measurement values delivered by a device under test with those of a calibration standard of
known accuracy. Such a standard could be another measurement device of known accuracy, a
device generating the quantity to be measured such as a voltage, or a physical artefact, such as a
metre ruler.

The outcome of the comparison can result in no significant error being noted on the device under
test, a significant error being noted but no adjustment made, or an adjustment made to correct the
error to an acceptable level. Strictly speaking, the term calibration means just the act of
comparison, and does not include any subsequent adjustment.

58
The calibration standard is normally traceable to a national standard held by a National
Metrological Institute.

ELEMENTS IN CALIBRATION DEPARTMENT

 Adequacy of standards
 Calibration procedure
 Traceability
 Recall system
 Calibration report
 Labelling practice
 Calibration intervals& adjustments techniques

DEPARTMENTAL CHART- CALIBERATION DEPARTMENT

HEAD OF
DEPARTMENT

OFFICE IN
CHARGE

TECHNICIAN TECHNICIAN

 Calibration makes sure readings are correct. Various steps make up whole calibration
process for the company.
 Calibration is used worldwide. In Keltron, the calibration process starts with external
calibration. All the meters of Keltron are being calibrated using different calibration
devices. These calibration devices are first calibrated externally from Fluid Control
Research Institute, Palakkad, and Electronic Regional Test Laboratory (south),

59
 Trivandrum. Then all the meters of Keltron are checked with these meters and calibrated
within this period. In short, they make sure that each meter gives accurate reading. The
firm makes sure that all the equipment’s in the company are calibrated before the
guarantee period of the calibrating devices.

At the beginning of every year all the departments give a list of equipment’s to be calibrated.
Based on this list the calibration department prepares a schedule of when to calibrate. The
listed equipments are calibrated according to the schedule. Every calibrated meter is labelled
to make the workers aware about the reading status of the meter.

THE METERS ARE LABELLED AS FOLLOWS

The labels used by the calibration department are as follows:

 GREEN —valid calibration

 YELLOW-cleared for limited use
 RED-instrument shall not be used for measurement
 BLUE-calibration not required — for indication purpose only

QUALITY ASSURANCE DEPARTMENT

The duties of Quality Assurance department include central examination of raw materials,
components, and finished products. All types of organizations are trying to increase their quality
so that the customers will be loyal to their products and they will purchase the products
repeatedly and they may also tell others about this product.

If the quality is found to be satisfactory and the components and finished goods conforms to the
pre-determined specification the department issues acceptable certificate. For this the department
has qualified and competent staff. The company has strict and unfaultable system of quality
control right from the procurement of raw material to the sale of finished goods, ensuring that
only good quality material is passed to the next stage. Absolute traceability is maintained right
from the raw material supplier to the finished goods, to analyse the cause of defects whenever
they occur. Quality of the product is very important for the existence of the company. It will
increase the goodwill of the company.

60
FUNCTION

The quality appraisal of the department is carried in three stages as follows:

1) Raw material inspection

2) Patrol inspection

3) Final inspection

Finished products (Capacitors) are inspected for the defects, which are also categorized into
three, namely:

1) Critical defects

2) Major defects

3) Minor defects

RAW MATERIAL INSPECTION

The materials that are imported for production are being inspected and the quality is
assured. The materials are accepted only when the quality of the different material is assured.
Some require 100% conformance as specified. Those materials that do not give 100%
conformance are not accepted because it may adversely affect the quality of the finished product.
Minor deviations from the standard are overlooked. After the raw materials are imported it will
be checked with the companys own standard. If there is a major deviation from the standard,
sometimes they are also cleared for use if end products are marketable. This acceptance is called
conditional clearance.

PATROL OR IN-PROCESS INSPECTION

In, KCCL, the quality assurance continues when the production is in progress. Here the
inspector goes to the plant and checks whether the products, after each process, satisfies the
accepted standard. The person assigned for this purpose is named Patrol Inspector. If there is
any critical problem, it will be reported to the HOD and action will be taken depending upon
the nature of the defect noticed.

61
OUTGOING INSPECTION

This is carried out on the finished goods. Here the inspection starts after ageing and
testing process are done to the capacitors. KCCL produces around 500K-600K capacitors per
day. Quality controller checks the output by a sample of batch under the standard IS -10673. This
is the standard which is used by the Government of the India for all electronic equipment. The
defects are expressed in percentage level. It will be withdrawn, and further rework will be made.
In case of capacitors, the major parameter is the electrical parameter, and is 100% vested by
ageing and testing. Other parameters are checked by a subsection of manufacturing department
by method of sampling

RESEARCH AND DEVELOPMENT DEPARTMENT

R&D plays a crucial role in electronic industry. Innovation and quality control are major
concerns of this department. If the company must survive in the present highly competitive
market, Research and Development must come out with innovative products and constant up-
gradation of technology. KCCL allocates 0.5%-1% of turnover for Research and Development
purposes.

FORMING OF ALUMINIUM FOIL

Etched and formed aluminium foils are the major raw materials to produce electronic capacitors.
The manufacturers of electrolytic capacitors have been importing this item since the technology
for etching and forming for the aluminium foil is not available in India. The company for the first
time in India developed the technology for forming of high voltage and low voltage foil in its in-
house forming plant. The plant was designed and developed by the engineers of the company and
the forming machine is fabricated locally.

ETCHING PROJECT

Etching technology for etching of aluminium foil is yet to be established in India. The company
has already developed indigenously the technology for etching of low and medium gain
capacitors.

62
DEPARTMENTAL CHART-RESEARCH AND DEVELOPMNET

HEAD OF THE
DEPARTMENT

SECTION IN CHARGE SECTION IN SENIOR

PRODUCTION DPT CHARGE TYPIST
ELECTROLYTE DPT

TECHNICIAN TECHNICIAN
APPRENTICE APPRENTICE

63
 CHAPTER 4

ROUTINE WORK DONE IN THE ORGANIATION

Sl No: DATE DETAILS OF THE WORK

 Familiarised with the production process of (thyristor,
resistor and capacitor) electronic components in Keltron.
1 1/06/2018-2/06/2018  Assisted the manual workers engaged in insulating,
testing and packing of the electronic components.
 Recorded the total production of electronic components
and the no of defected pieces in the batch.
 Worked in HR department
 Updated the database of employees.
 Documented the job profile for various post in the
2 4/06/2018-7/06/2018 organization.
 Computerized old files related to employee management.
 Analyzed the leave tracker and submitted report to the
supervisor as per the instructions given by them.
 Collected the list of employees who has requested for
food coupon for the week.
 Recorded and punched the food coupons as per the
3 8/06/2018-9/06/2018 request.
 Distributed the same to the employees.

64
CHAPTER 5

SWOT ANALYSIS

SWOT stands for Strength, Weakness, Opportunities, and Threats of an organization. The
crucial fact of a multinational strategy is to be determining the direction of multinational
business and course of action to be adopted to each of the destination. This is possible only when
comprehensive SWOT analysis is made in a detached manner and combat the threats to the
business. The management can identify those opportunities in different countries, which the firm
with its existing capabilities can exploit fully to improve its profitability and grow successfully.

1. STRENGTH

ISO certified

It is one of the leading capacitor manufacturing companies in Kerala. It is an ISO 9001 certified
functioning company.

High quality product

It has always been able to provide high quality products.

Coordination among departments

A good co-ordination exists between different departments.

Experienced Technocrats

The strength of Keltron is a team of experienced technocrats With smart supporting staffs.

Uninterrupted power supply

Keltron can perform with power supply that includes a battery to maintain power in the event of
a power outage

65
 2. WEAKNESS

Higher price

Keltron produces high quality products but at a comparatively higher price than its competitors.

Imports raw materials at high cost

Imports raw materials, import cost is high leading to a loss as the sales price is not able to cover
the loss.

Less recruitment

Government control has also a bad effect on the company, being there has been no recruitment
since many years.

Change in government policies

The weakness is the irregular performance of the organization due to the periodical changes in
government policies especially the imports policy.

Slow Diversification

In public sector organizations diversification is very slow unlike the private sector, which is also
a weakness.

3. OPPORTUNITIES

Merger

Government of Kerala has approved the merger of four subsidiary companies of Keltron.

Diversification of products

The opportunities are as the industry is in the electronic field diversification of products opens
ample opportunities for the organization.

Cost reduction

Reduction of cost is a must for the company to survive.

66
Focus on IC Capacitors

There is a vast scope if the company focus on the IC capacitors since the present demand is high
and is expected to be so in the coming years.

Favourable government policies

If the government make policies in favour of Keltron ,there is a good chance of opportunity to
improve.

4. THREATS

Threat of new entrants

Keltron is presently facing threat of entries of new firms.

High competition.

Threats of substitutes.

Decrease in market demand

Product differentiation

Bargaining power of suppliers

The suppliers have the bargaining power to demand what they want.

Bargaining power of buyers

KELTRON has no bargaining power because there are many other rival companies.

Rivalry among existing firms

It is common in this field.

67
PORTERS FIVE FORCES MODEL

68
CHAPTER 6

FINDINGS, SUGGESTIONS AND CONCLUSSIONS

FINDINGS

 Government of Kerala has approved the merger of four subsidiary companies of Keltron
 Keltron produce high quality products
 KCCL is maintaining high standard of quality so the production cost are high
 Most of the products are produced as per the order
 KCCL have enough potential for growth and expansion
 The company is located near all modes of transportation that is waterways, railways and
roadways
 Because of increasing demand, now the company has changed their distribution system in
order to reach more business.

SUGGESTIONS
 The company should adopt modern performance appraisal system
 Company should carry on diversification
 Management should try to improve labor welfare facilities
 The company sell products at competitive price
 Management must form work committee for maintaining good industrial relation
 Adequate staffs should be appointed so as to reduce burden of existing staffs
 The companyshould try to use its production capacity to the maximum
 Management should adopt suggestion system
 Company should try to promote the product through exhibition, trade fair, advertisement
 Maintain a proper communication between employees and supervisors
 Identify the strength and weakness of the employees and giving proper training to them
 Recruit more fresher’s , it will help the company to compete with other company
 The company may prepare budget for each activity , it will help to reduction of production
cost

69
 CONCLUSION

Keltron has initiated steps to create a knowledge center that would catalyze the process of
knowledge assimilation as well its dispensation. Keltron is one of the leading capacitors
manufacturing companies in Kerala. It is an ISO 9001 certified functioning company. It has been
always able to provide high quality products. It has also a super Design & Research section that
helping providing capacitors according to the needs of the customers. And also they have a well
experienced technical experts and supporting staffs for the accomplishment of the goals of the
company.

It has a committed set of technocrats who work tirelessly for the accomplishment of the goals of
the company. The company provides employment for the handicapped people giving them
high respect. It has a very eco-friendly surrounding helping its employees to keep a cool
atmosphere.

The organization study in Keltron help me to understand the various functions in an organization
and how it is connected with our management theories. It get a good idea about the history and
profile of” KELTRON” to enlarge my idea in the business world. And also the study has given
mean insight into the working of an organization engaged in the production of electronic
equipment. Here in this study I also found the problems faced by most public sector
undertakings. I take this opportunity to extend my wholehearted thanks to Keltron, and all those
people for the great help in doing the organization study.

70
 BIBILIOGRAPHY

BOOKS

1. Cherunilam Francis (2005), Business Environment: Text and Cases, New Delhi:
Himalaya Publishing House.

2. Sekaran Uma (2006), Research Methodology for Business — A Skill Building

Approach, New Delhi: John Wiley & Sons Inc.

3. S.S. Khanka. (2007) Human Resource Management (Text and Cases),New Delhi.

WEBSITES

1. www.keltron.org

2. www.capacitorindustries.com

3. www.keltroncom.com

4. www.wikipedia.com

5. www.google.com

MANUALS

1. Department Manuals and balance sheet of Keltron.

71