CHAPTER I

INTRODUCTION

1
1.1 INTRODUCTION

Khadi is a part of our conscience and the Symbol of our self-respect and
self-reliance. Khadi spinning is also a very effective medium for and commercial
harmony and Nations Unity. A wheel ties each person of nation with one thread
called Khadi Spinning when helped Country to fight against extreme poverty and
made India producing Khadi, Independently, which helped a Country in
development of Textile.

The Khadi and Village Industry Commission (KVIC) is a statutory body

formed by government of India under Khadi and Village Industry Cat of 1956. It
is an apex organization under minister of micro, small and medium enterprise
(Government of India) with regards to Khadi and Village industry with in India,
which seek to plan, promote, feelitate, organize and assist the establishment and
the development of KVIin rural area in co-ordination with other agencies encaged
in rural development whatever necessary. In April 1957, it looks over the work of
forms All India Khadi and Village Industries Board.

Today Khadi Productions are more popular. The precise technology

involved in the production of khadi varies from region to region, as do the
techniques used for its decoration (dyeing, embroidery, printing, etc...). Khadi
products become fashion symbol in today’s fashion word also. So Khadi and
Village Industries have an important and well established place in the Indian
Industries.

1.2 DESIGN OF THE STUDY

1.2.1 STATEMENT OF THE PROBLEM

The present study can be entitled as “a study on the Production

department of kerala Khadi and Village Industries Board Payyanur”

2
1.2.2 OBJECTIVES OF THE STUDY

1. Conduct and organizational study

2. To study the general organizational functioning of firm.

3. The study about the production departments and their performance.

4. To perform an organizational study about the Khadi Industry.

5. To understand activities done by production departments of the Khadi

Industry.

1.2.3 SCOPE OF THE STUDY

The study helps to understand whether the Khadi centre manage its
department works effectively in the present condition of the company. This study
is also helps identify the works done in production department of the company.
And providing humble suggestion to efficiency of production department.

1.2.4 RESEARCH AND METHODOLOGY

Research is an art of scientific investigation. According to Redmen

and defines research as a “systematic effort to gain knowledge”. Research
methodology is way to systematically solve the research problems. It is a plan of
action for a research project and explains in detail how data are collected and
analyzed. This research study is a descriptive research study.

The research is made through collection of date. The data are

mainly collected in two ways.

3
 1. Primary Data

Primary Data Collection is made in two ways:

a. Direct industrial visit

b. Direct interview with managerial and administrative office.

2. Secondary Data

This Data’s are collected from three sources.

a. Company Brochures

b. Company

c. Company Websites.

1.2.5 LIMITATIONS OF THE STUDY

 Time is the major limit in factor of the study.

 The result of the study is mainly depends on the information given by the
respondents, which may be sometimes biased.

 The workers are not ready to expose themselves

 The study suffers from the limitations of focus group opinion that is
generalizing the opening of a relatively small number of respondents.

 The inadequacy of secondary data may be reflected in the analysis.

4
 CHAPTER II

INDUSTRY PROFILE

5
2.1 INDUSTRY PROFILE

Village industry means any industry located in rural which produces any
goods or renders any service with or without use of power and in which the fixed
and capital investment (in plant and machinery, land and building) per head of an
artisan does not exceed Rs. 1,00,000/- All khadi and Village industries except
service industries can be started only in Panchayath areas.

The board offers severally financials schemes that bestow ample

employment opportunities to the villagers. The schemes are intended to help the
rural community’s setup industrial units with minimal investment and yielding
good returns. The board restricts its assistance to only those products which are
healthy and eco-friendly. Over the years the board has assisted many village
industrial units that provide innumerable employment opportunities to the
villagers. In order to provide employment in the village industrial sector, the
board established its own departmental units producing different kinds of
products. Besides the board extended financial assistance to setup village
industries units.

Accordingly the board had extended financial assistance to setup 18241

units to generate 144941 employments through ‘pattern scheme’, 1572 units to
generate 12473 employments opportunities through. ‘Consortium bank credit
scheme’ and 1142 units to generate 29734 employments opportunities ‘through
interest subsidy scheme’. Presently the board implemented a new for the purpose
as Rural Employment Generation Program.

There are number of small scale units financed by the board are working
in the state and various products are produced in their units. The products are
available in the open market and in the scales outlets of the board. Green Valley
Mineral Water, Win Dish Washing Soap, then Nellikka, different kinds of

6
arishtoms, Ceiling Fans, Curry Powder, Pickles, Agarbathy, Handicrafts etc.are
some prestigious products produced by the board.

2.2 VILLAGE INDUSTRIES

Village industries means any industry located in rural area which produce
any goods or render service with or without use of power and in which the fixed
capital investment (plant and machinery, land and building) per head doesn't
exceed Rs.1,00,000/-. All Khadi and village industries except service industries
can be started only in Panjayath area.
The board offers several financial services that best employment
opportunities to the villages. The schemes are intended to help the rural
communities set up industrial units with minimum investment and yielding good
returns. The board restricts its assistance to only those products which healthy
and eco-friendly. Over the years the board has assisted many village industrial
unit that provide an employment in the village industrial sector, the board
established its own departmental unit providing different kinds of products
besides the board extended financial assistance to set up village industries units.
There are a number of small scale units financed by the board are working
in the state and various products are producing in those units. The products are
available in the open market and in the sales outlet of the boards. Green valley
mineral waters, vim dish washing soap. Then the different kinds of ceiling fans,
curry powder, pickles etc are prestigious product by units financed by the board"

2.3 KHADI AND VILLAGE INDUSTRIES AND THEIR ROLE IN RURAL

DEVELOPMENT

The Kerala Gandhi Smark Nidhi, which is the state unit of the National
Gandhi Memorial Fund, New Delhi, has been functioning from 1951 through it
was formally registered under Travancore Cochin Charitable Societies Act in the

7
Year 1962 only. It is a matter of great satisfaction that Sri. K Janardhanan Pillai,
who ahs been associated with this great organization from ones, and who is the
motive force, is with us and is able to participate in the Golden Guile Celebration.

Kerala Gandhi Smark Nidhi is a unique organization, which has attempted

from the beginning, to concretize almost all the aspects of Gandhian constructive
programmes, literly all over this state, right from Parassala in south to Kasaragod
in the North. It was emboldened to attempt this duantings task, because of the
form resolve of galaxy of leaders, social activities and field workers whom the
founding fathers could identify and bring its fold. Legendary figures likes sarva
sree K Kelappan, K P Madhavan Nair, K Radhakrishnan Menon and host of other
equally great personalities devoted a lot of time, and selfess service, to bring up
this nobble body. A second line of organizers, with considerable clout in their
respective areas, secured valuable land by multi purpose rural development
centre. Gandhi Smarak Seva Kendrams were organized utilizing local leadership
in over a dozen localities a senior worker of Nidhi, providing regular laison with
the parent body – by the first half of 1980s 64 rural development centers were set
up which extended a variety of service to rural artisans, agriculturists, women and
children.

8
2.4 CHRONOLOGY OF EVENT

1920 : Nagpur Session (1920) the Indian National Congress decided to

encourage.

“Khadi”. The first Khadi production centre was established at Katiawad,

Gujarath Mahathma Gandhi used to refer to Khadi as “The Livery of Freedom”.

1923 : Development of all India Board under the Indian National Congress
by Gandhiji.

1925 : Setting up to all Indian Spinners Association (AISA)/Akhil Bharat

Charkha Sangh

1935 : All India Village Industries Association (AIVIA) was Formed.

1946 : Government of Madras sought the advice of Gandhiji and set up a

Department for Khadi

1948 : Government of India recognized the role of rural cottage industrial

policy Resolution, 1948 constituent Assembly included cottage industries in rural
area among the directive principles of the constitution in Article 43. These plan,
setting laid down the policy frame work for setting up of broadly for Khadi and
Village industries, central Government also recommended for setting up of a
Board.

1953 : In accordance with these recommendations, Government of India set

up all India Khadi and Village Industries Board in January 1953.
(AIKVIB).

1995 : It was decided that a statutory body should replace the board.

1956 : Khadi and Village Industries Commission Act 1956 were passed.

9
1957 : Kerala Khadi and Village Industries Board Act.

2.5 OBJECTIVES OF KHADI

The Kerala Khadi and Village Industries board is a statutory body

constituted by the act of 1957, vested with the responsibility of organizing and
promoting KHADI and Village industries in the state. The board implements the
programmes through co-operative, registered institutions individual and
departments units by imparting/availing assistance from Govt. of Kerala, Khadi
commission and nationalized banks.

 Promotion of Khadi and Village Industries

 Comprehensive range of support to KHADI and Village Industry

entrepreneurs.

 Marketing support to the beneficiary units of the board.

 Co-ordination and monitoring to around 25000 units, which have, came

up in Kerala with the assistance of board.

 Providing training to potential entrepreneurs in various sectors including

weaving and, pottery be keeping and host of other activities.

 Formulation and implementation of focused programmes and scheme for

the revival of sick industries and units.

 Providing technical assistance to the coming units in order to materialize

the objectives, board has formulated various schemes and implemented
them successfully.

10
2.6 FUNCTIONS OF KHADI

Some of the major functions of Kerala Khadi Industry commission (KKVIC) are

1. The KKVIC is charged with planning promotion, organizing and

implementation of programme for the development of Khadi and other
Village Industries in the rural areas in Co-ordination with other agencies
encaged in rural development where every necessary.

2. Its function also comprise building up of a reserve is row material and

implements for supply to producers creation of common service facilities
for processing raw material as finished goods and provision of facilities
for marketing of Khadi Village Industries product a par from training of
artisans encaged in these industries and Co-operative efforts amongst
them. To promote the sale and marketing of Khadi and product of Village
Industries, the KKVIC may forge linkages with established marketing
agencies where even feasible & necessary.

3. The KKVIC is also charged with the responsibilities of encouraging and

promoting research and production techniques and equipment employees
in the Khadi and Village Industries section and provide factories for the
study of the problem relating to it, including the use of non conventional
energy and electric with a view to increasing productivity, eliminating
drudgery and otherwise enhancing their competitive capacity and
arranging for dissemination of silent result obtained from research.

The KKVIC is entrusted with task providing financial assistance to institution

individuals for development & operations of KHADI NAD VILLAGE Industries
and guiding them through supply of designs. Prototypes and other technical
information.

11
2.7 GOVERNMENT POLICIES

Khadi and Village industries commission is the Indian Government body

which promotes the usage of Khadi. Khadi production and selling comes under
the small scale industry sector. This Government body was created by an act
which was passed by the parliament. This gave a boost to the Khadi Gramodyog
opened all over the country. These shops sell stitched as well as unstitched Khadi
fabrics. Every year starting from the date 3rd October to January 29th all Khadi
gramadyog bhavans provide discount to the public on various Khadi products. It
comes under the category of Indian handloom. This sector also generates
employment for the rural population of India. Indian government conduct various
exhibitions trade fairs in India and abroad to promote this fabric. The small scale
industries encaged in manufacturing of Khadi gets economics redemption for the
raw materials and production costs by Indian government. According to a recent
survey done it provides employment to 14.97 lakhs of people, the total annual
production of Khadi is 111.49 million sq.mtrs. Khadi over the decades has moved
from freedom fighters identity fabric to a fashion garment. Today there is such an
increasing demand for Khadi that despite of the thousands of workers involved in
spinning and producing Khadi fabric, the demand of the market does not get
fulfilled.

12
2.8 IMPORTANCE OF KHADI

Khadi is an Indian fabric. Khadi is also known by another name

Khadden. It is made by spinning the threads on an instrument known as Charkha.
During pre independence era the movement of Khadi manufacturing gained
momentum under the guidance of father of nation mahatma Gandhiji. This
Movement of Khadi manufacturing and weaving started as to discourage the
indians from wearing of foreign clothes.

Khadi before independence was considered as the fabric for the political
leaders the rural people. But now it has found its way into the wardrobe of
fashion conscious people. The current situation is that the demand is more that the
supply. Earlier the type of Khadi available was khadi cotton which has very
course texture and feel. However many verities of Khadi like khadi silk. Khadi
wool and Khadi cotton are available now, which makes it a fashionable fabric and
likable by the masses.

In concept was developed by Mahatma Gandhi. It was a symbol for

Political agendas during the fight for independence in India against the British
rule. It was primarily a means to provide employment to the unemployed rural
population of India at that time. The Indian flag has to be also made from Khadi
material. Thus it holds national importance; we could even call it the national
fabric of India.

Previously Khadi was dyed in earthy color tones and was used to make
traditional garments but now designers are experimenting by dyeing Khadi with
striking color like lime green, violet, baby pink, turquoise blue, etc. Stylish
garments like miniskirts, batter neck tops, racer tops, tunies etc. are made from
Khadi.

13
 Khadi is hand woven and spun fabric which takes time to be made. It is
mainly manufactured in rural area of India. In previous times it was considered as
the fabric for the poor rural workers and farmers. But wearing khadi is no more
for the poor, many high profile personalities and economically sound people
prefer to wear it. It is considered as one of the most beautiful Indian fabric. The
Khadi wearer gets a royal and distinguishable look due to its fall and style. It
symbolizes luxury and uniqueness.

2.9 FIRST MYTH ABOUT KHADI

It helps the poor according the Gandhiji, the poor don’t really need your
help. But for an argument are, let’s say that the sity folks want to wear Khadi;
they don’t have the time on the inclination to spin it, but they want to busy it. So,
Government step in say. “Ah, we can do employment generation with Khadi”.
Annually 600 crores (6 Billion) of Khadi are purchased consumers, so perhaps
that money can employ the 40% unemployment villagers of India.

2.10 HOW CAN BE INCREASE THE PRODUCTION OF KHADI?

Unfortunately, people asking the question wasn’t thinking about self

sustenance, but rather of compeering with the textile Mills that help 99% of the
market share. Since you can’t motorize hand – spinning, experts in the field
dedicated to innovative the “charka” (the spinning wheel) that are used to create
Khadi. Amben – chark is the name if the latest spinning wheel that is still hand
powered but 8 x 5 more efficient because of its 4 spindles.

Because the amber – charka wasn’t coupled with an 8 x increase in

Khadi demand, it simply killed 8 x 5 of the village’s jobs. And in fact, if not only
killed the job, but also the villages themselves. In cities like Nagpur and state like
Andhra Pradesh, hundreds of spinners committed suicides in the late 70’s.

14
 Technology, innovation, efficiency is not to be described. But if these
advanced are created an profit making sites it annihilates the cultural fabric of an
ecosystem and eventually, runs the risk destroying the entire eco system it self.

When most people think of cotton, they think white. No one is this
generation will even remember that cotton naturally gross in any other colors like
brown and yellow. Because of the heavy textiles demand for more over, the
heavy cotton conception by the mils created and imbalance in the natural ecology,
as the result 80% of all pesticides used in Indian farms white cotton, all farmers
stated producing white cotton, are used on cotton farms, to ‘efficiently’ transport
cotton to cartelized mils it is compressed. Then at the farms, lost of energy is
spending in carding the cotton to make in fully again.

Most Khadi produce now use “new and improved” amber Charka in
India. You can’t blame the producers in a land were more that 350 million people
live on less than dollar a day; they are just trying to survive. But the confusion of
the government policies, technologies and pundits are creating there weird hybrid
solution that as simply not Khadi not only are amber Chaka machine parts hard to
maintain, it also requires long stable cotton silver that is used by textiles mills.
The same long staple cotton that as increased the use pesticides, destroyed cotton
bio diversity, and created many suitable from of inefficiencies. So this kind of
Khadi movement is far away from Gandhijis’s vision of self reliance Government
provides rebates to subsidies the cost of hand spun Khadi, but greedy institutions
have now created hybrid Khadi Polyster that also qualities for the rebate.
Consumers, as result don’t have a clue as to why buy Khadi propaganda says that
Khadi generates the employments for the poor. And that it’s material that
“breaths”. Surely, Khadi is thick tom provide insulation in the winter and pours to
provide ventilation in the summers and it feds good to wear but when we look in
to the various youth groups around the state of Gujarat we can find the practical
reason for not buying Khadi is because it’s expansive.

15
 At presents Khadi is a bit more expansive today and that can change
with the right policy and batter marketing, still, just as an original painting will
never be cheaper as a print, hand spun Khadi and block printing won’t even be
able to complete with a 80 Rs T-shirt mode synthetic material. But is production
i=of chemical dies used to color our T-shirt will ruin the river, if the mass cotton
production will ruin the land the lack of jobs will run in the line of the common
man, the question really is, it worth it? No, no one in their right minds will think
so.

Roof of the problem, through is that “Khadi” itself is in a state of mass.

Gandhians have become idealist whose message is disregarded by consumerist
main stream. Village production is just trying to make their daily livelihood.
Consumers are getting mixed signals from government policies, propaganda and
competition attempts against the textile industry, to top it trying tom increase the
jobs and provide rebate but the Khadi commission himself admitted that “our
biggest problem that we don’t know to get the help to the right person”. That is to
say there is no infrastructure to implement policies.

Khadi stood for decentralized sustenance. But with the amber Charka
and lack of accompanying increase in wags or jobs or Khadi demand (all of
which can potentially be blamed on the government policies), Khadi was left
neither here nor there. Khadi pundits came out and declared, “Khadi” will soon
take over the textile market”. Instead of remembering the principles of Khadi,
they started creating extravagant shows, setting up huge infrastructure and
entering a centralized marketing system that were ill – equipped to fight, that
Khadi never stood for. Not only are they loosing the fight, but they are in the
wrong war.

Gandhi once said “live simply, so others can simple live”. His interest
wasn’t in selling Khadi and marketing consumerism. He wanted the common man

16
to be self reliant, to be free firm market forces think for him, to be alive in ways
that are natural to them. Perhaps Gandhi’s message is too revolutionary for over

2.11 OVER VIEW OF KHADI

Khadi is a versatile fabric. It has the unique property of keeping the

wearer warm in winter as well as cool in summer season. This fabric has course
texture and gets easily crumpled therefore in order to keep it firm and stiff, starch
is to be added. This fabric on washing is more enhanced thus the more you wash
it, better the look. Khadi is not easily worn out for years together, a least for 4-5
years. Very attractive and designer apparel are made by doing handwork on them
garments made from it. Khadi spinning is generally done girls and women and
weaving mostly by men. During spinning of Khadi the threads are interwoven in
such a manner that it provides passage of air circulation in the fabric. A pant from
this unique property, it also provides warmth in winter season which is quite
surprising factor.

Khadi cotton is required to be starched so that is does not get easily

crumpled. It comes it many colour and is not harmful to the skin as synthetic
fabrics. This cotton is very soothing in summer season as ample amount of air
ventilation is there, it has the capacity to absorb moisture therefore it easily soaks
the sweat and keeps the wearer cool and dry. Khadi cotton comes in plain as well
as in printed fabrics. The most common outfit of made from Khadi cotton is the
Kurta. Many types of apparel are manufactured from Khadi cotton like saris,
salwan suits, fabric yarns, western tops, shirts, trousers, skirts, handkerchief etc. It
is a very durable fabric.

In Khadi silk, the ratio of Khadi and silk fabric is 50:50. This fabric
requires dry cleaning. It shrinks about 3% after the first wash. It is quite on

17
expensive fabric. Khadi silk provides royal and rich look. The various types
apparels made from khadi silk are Salwar Kameez, Kurta Pajama, Saris,
Dupattas, Shirts, Vest and Jackets. Apparels like Kurtha,Jacket, Sari blouses
requires lining to be given ensure its longetivity.

2.12 BOARD AID TO KHADI AND VILLAGE INDUSTRIES

Village industry means any industry located in rural areas which

produces any goods or renders any service with or without use of power and in
which the fixed capital investment. (in plant and machinery, land and building)
per head of an artisan does not exceed Rs. 100000/-. All Khadi and Village
industries except service industries can be started only in panchayath area.

The board offers several financial schemes that ample employment

opportunities to the Village. The schemes are intended to help the rural
communities set up industrial units with minimal investment and yielding good
return. The board restricts its assistance to only those products which are healthy
and eco friendly. Over the years the Board has assisted many village industrial
units that provides innumerable employment opportunities to the villages. In
order to provide employment in the village industries sector, the Board
established its own departmental units producing different kind of products.
Besides the board extended financial assistance to setup village industries units.

Accordingly the board had extended financial assistance to setup 18241

units to generate 144941 employment through pattern scheme, 1572 units to
generate 12473 employment opportunities through ‘consortium Bank credit
scheme’ and 1142 units to generate 29734 employment opportunities through
interest subsidy scheme presently. The board implemented a new scheme for this
purpose as ‘Rural employment generation program.

18
 There are a number of small scale units financed by the Board are
working in the state and various products are produced in these units. The
products are available in the open market and in the sales outlet of the Board.
Green valley minerals water, win dish washing Soap. Then nellikka different
kinds of arishtoms, ceiling fans, curry powder, pickle, agarbathy, handicraft etc
are some prestigious products produced by units financed by the board.

19
2.13 INDIAN KHADI INDUSTRY (IKI)

The Government of India assumed responsibility for initiating assisting

and financing Khadi under the auspices of the Government of India. All India
Khadi and village industries board was established in 1953. It was late converted
into a statutory body called Khadi and Village Industries Commission in the year
1957. In the statement of textile policy announced by the Government in March
1981. It was started that “Government is committed to encourage production of
textile products intact Khadi sector considering its large employment potential, it
would be the endeavor of the Govt. to make the products of this sector more
compensative and of better quality. Khadi and Village industries play a
significant role in the development of the Indian Economy. It contributes
significantly to the national income and provides employment opportunities to a
large number of the rural economy. However the main basis of Khadi program
was its economic value which is not divorced from human value.

Khadi and village industries committed established under the Khadi and
village industries commission Act, 1956, (61 of 1956), is a statutory organization
encaged in promoting and developing Khadi and village industries for providing
employment opportunities in the rural areas, there by strengthening the rural
economy of the country. It took over the activities from the erstwhile. All India
Khadi and village industries Board w.e.f.01 April 1957. KVIC has been identified
as one of the major organizations in the decentralized sector for generating non-
farm employment opportunities in rural areas at low per capita investment. It
undertakes activities like skill improvement, transfer of technology research and
development, marketing etc, in the process of generating employment/self -
employment opportunities in rural areas.

20
 FIGURE NO: 2.1

STRUCTURE OF KHADI AND VILLAGE INDUSTRIES

KVIC AT THE TOP – NATIONAL LEVEL

KVIB IN THE MIDDLE – STATE LEVEL

DISTRICT AND VILLAGE INDUSTRIAL OFFICER AT THE

VILLAGE LEVEL

21
 FIGURE NO : 2.2

ORGANIZATIONAL CHART

KHADI BOARD MINISTER (CHARIMAN)

VICE CHERMAN & BOARD MEMBERS

SECRETARY

DIRECTORS FINANCE ADVISOR

ACCOUNTS OFFICER

CO- MARKETING KHADI

OPERATIVE

DEPUTY DEPUTY DEPUTY

DIRECTOR DIRECTOR DIRECTOR

PROJECT OFFICER

VILLAGE INDUSTRIES OFFICER

ASSISTANT REGISTRAR

JUNIOR SUPERINTENDENT

CLERKS

OFFICE ATTENDANT

22
2.14 PRODUCTION UNITS DETAIL OF KHADI

Board promotes Khadi industry departmentally and institutionally. The

board is encaged in spinning and weaving activities for cotton, Muslim
Polyvastra. In case of silk weaving only is undertaken various verities of yarn
viz. 33s, 50s under cotton, 100s, 150s and twisted and muslim 50s, 70s under
polyvastra are produced through these spinning unit, dothies such as Kora,
Kuppadom, Towels, Shirting, Bed Sheet, Window Curtain, Cotton and Silk sari
etc. are produced in the weaving centre.

2.15 SPINNING

Usually roving, the basic raw material from spinning, are obtained by
the repeated processing of cotton in Mills. But ravings for Khadi yarn are
produced through Charkas using manpower to get hand spun yarn. Various
verities of Charkas now in use are 6 spindles, 7 spindles, 8 spindles. There is a
cotton processing unit at Ettukudukka in Kannur district, where in the raw
material for 33s yarns is processed. The raw material for Muslim and Polyvastra
are made available from the central silver project of Khadi commission, Kuttoor
at Thrissur District.

2.16 WEAVING

Handspun Yarn is winded for warp and weft. Weaving in handloom is

done using this processed yarn. Frame looms and semi automatic looms are
generally used in this process. Board introduces innovative designs according to
the modern trends.

The board has 4456 Charkas and 2198 looms which are installed in
various department units and being used in Khadi production. 12000 artisans are
now working in the field of Khadi production.

23
 TABLE NO: 2.1

SPINNING AND WEAVING CENTERES IN KERALA

PROJECT SPINNING WEAVING

CENTRES CENTRES
Thiruvananthapuram 22 15

Kollam 15 5

Pathanamthitta 9 5
Alappuzha 10 5

Idukki 13 4
Ernakulam - 2
Thrissur 15 5
Palakkad 20 13

Malappuram 9 5

Kozhikode 39 25
Wayanad 3 25
Payyanur Khadi Center 66 44
(Kannur & Kasargod dist)

Prestigious Products

1. Silks Sarees (Payyanurpatta and Chithaatisilks)

2. Cotton Sarees
3. Kuppadam Dothies
4. Bed sheet
5. Towels

24
 CHAPTER III
COMPANY PROFILE

25
3.1 COMPANY PROFILE

Payyanur has won the reputation of being called second ban dole by its
activity particular in national movement. As a matter of fact Khadi work has been
initiated in and around during early 1922 as part of national movement.

Payyanur has one among the 7 centers selected for the intensive Khadi
work by the Govt. of Madras in the year 1947. It has run by all India spinners
association. All Indian Khadi and industries board. In the period after selecting
this for the intensive Khadi work, the center was run by the rural development
department and subsequently by the Khadi department of Madras. On
reorganization of state in 1956 the centers was transformed to control of director
of industries and commerce Govt. of Kerala.

When the Khadi and Village industries board constituted for the
implementation of Kerala Khadi industries board of state, the Govt. of Kerala
decided to hand over the centers to the board for its efficient and smooth
functioning according by the center was transformed to the control of KKVIB on
1959. Since it is run as a production / marketing unit of KKVIB in
Kannur/Kasaragod district are carried under the control of the PKC. It one of the
major of Khadi.

Unithiri of karivellur and Vaidyar VP Sreekanda Poduval also did a lot

for the Payyanur was a major center of promotionn of Khadi and still retain this
tradition. Even today we can see a lot of people wearing Khadi in Payyanur
which is not commonly seen in other parts of Kerala. This Khadi movement was
started in Payyanur by the great freedom fighter of Payyanur, CH Govindan
Nambiar. Unna man promotion and propagation of Khadi. The patriotic poems of
Mahakavi Kutamath Kelu Nair also helped Khadi movement. The Khadi

26
movement was a part of the Independence struggle. In order to boycott the
foreign cloths, Gandhiji called upon the people to make their clothes by
themselves. Khaddan or Khadi is the cloth made of hand-spurn thread using the
simple instruments like “Charka”. The “Charka” was also selected as the emblem
in the national flag during the freedom struggle. The
organization called Charkha sangha was formed in 1925 with Head Office at
Wardah and Gandhiji was the president of the society until his death. The motive
of this society was to promote and circulate Khadi among the people. In 1930, NP
Raghava Poduval of Shornur (popularly known as Raghavi) came to Payyanur for
the formation and operation of Charka Sang. In 1934 Payyanur was selected as
the Head Office Charkha Singh’s Kerala unit and C.K.Kartha (Ernakulam)was
the first secretary of the H.O. After this Charka became popular in Payyanur and
the sarrounding places. The thin and soft cloth made in Payyanur Khadi sang
gained nation wide attraction and it got the brand name as “Payyanur Special”.
When Gandhiji visited Payyanur in 1934, the Khadi activities of Payyanur was
specially congratulated by him. During 1937-39 when Rajaji become the Chief
Minister of Madras State (Payyanur was a part of Madras State) a Charka making
unit was started in Payyanur with the Government financing. In 1941 the Head
Office of Kerala Charka sang was shifted from Payyanur to kozhikode Gandhi
Asramam but the production and selling units remained here. In 1946, the then
Chief Minister of Madras, T.Prakasan, after consulting with Gandhiji, took a
decision to take over five Khadi centers and Payyanur center was one among
them. Gradually the Charka sang faded out of the picture and the center fully
came under the government control. The Payyanur Khadi Centre was started in
1958. VP Narayana Poduval, E.Narayanan Nair and NP Raghava Shenoy were
the promoter of this new centre. Later this centre came under the control of
Kerala Khadi and Village industries board.

27
3.2 IMPORTANCE OF PAYYANUR KHADI CENTRE

The Khadi and Village Industries have a very prominent role in the
Indian economy. In this aspect, Payyanur, Khadi centre also enhances some
importance. The importance of PKC as the following:-
a. In an economy like India, characterized by unemployment and under
employment, PKC assume special significance because of its high
employment potential.
b. Another important advantage is their ability to provide employment in
the off season. To a large number of people, agriculture provides only
seasonal employment. PKC provides employment opportunity during
the off season and help many house holds to mitigate their problem
during off season.
c. PKC helps in achieving wide spatial dispersal of industrial activities
and there by reducing the regional economic imbalance.
d. PKC promote economizing of resources utilization of locally available
raw materials by introducing easily adoptable techniques. In some
cases, non conventional raw materials are used there by converting
waste in to health.
e. It provide a vast scope for helping special categories of people like
women, old aged, physically, handicapped and weaker section of the
society.
f. PKC helps to increase the place of rural development.
g. It has acquired make attention due to the reduced ecological problems
they create, compared to the other large industries.
h. It do not use or use only very little electric power, thus reducing the
energy crisis.

28
i. PKC helps in production of large variety of goods like readymade
garments, bed, bed sheets and pillow etc..... through labour intensive
method.
j. It ensures regular supply of goods and services through the use of local
skills and resources.

29
3.3 VISION, MISSION AND QUALITY POLICY

3.3.1 VISION:
KKVIB Payyanur is committed to customer delight through total quality
management with the Co-operation and Co-ordination of all the employees.

3.3.2 MISSION:
To built up the reputation of Kerala Khadi and Village Industries board, Payyanur
by satisfying is customers and to keep up the ancient Indian tradition and culture.

3.3.3 QUALITY POLICY

Quality Policy of KKVIB, Payyanur is to manufacture products as per
national and International standard and make them available as per the customer’s
requirement. A well defined quality management system has been implemented.
This system is continually reviewed to enhance its effect evenness and updated to
make changing needs.

TABLE NO :3.1
LIST OF NUMBER OF UNITS WORKING UNDER PKC
Department Number of Units

Spinning units 68
Weaving Units 55
Khadi Grama Soubhagyas 3

KS Soubhagyas 31

Grama Soubhagyas 14

Garment making centre 1

Bed Manufacture unit 1

Honey process Unit 1

Yarn Process unit 1

30
Yarn drying unit 1
Cotton processing 1

Oil unit Nil

Total 177
*Table showing number of labour in different units

TABLE NO: 3.2

PAYYANUR KHADI CENTRE, PAYYANUR

Details of Production Centre
Sl. No. Name of the Units Number of
labours
Spinning Unit
Kannur District
1 Alakkad 14

2 Chapparappadavu 14
3 Cheruthazham 9
4 Eruvassi 13
5 Ettukudukka 8
6 Ezhom 25
7 Kadannappalli 35

8 Kakkara 16

9 Kannapuram 24

10 Karivellur 10
11 Koluvalli 8

12 Kookkanam 7

13 Koorara 7

14 Kottiyodi 33

31
15 Kovvappuram 11
16 Koyyam 19

17 Kunhimangalam 16

18 Kuttur 15
19 Malappattam 18

20 Maloon 25
21 Manantheri 20

22 Mathil 15

23 Mavilayi 25
24 Meloor 33

25 Nelloonni 27

26 Pappinissery 6
27 Kelakam 8
28 Paradu 4
29 Pariyaram 25

30 Pilathara 15

31 Bishop House, Thalassery 16

32 Pattuvam 22
33 Pazhayangadi 20
34 Peringom 10

35 Pinarayi 26

36 Pullupara 19

37 Punchakkadu 19
38 Thaliparamba 11

39 Thekkumbad 23

40 Vimalassery 14
41 Peralassery 8

32
42 Vellur 23
43 Papparatta 40

44 Punnachery 4

45 Panthakkappara 21
46 Payam 10

47 Vellodu 9
48 Peravoor 7

49 Peravoor 10

50 Mathamangalam 29

KASARAGOD DIST
51 Bheemanadi 17

52 Elerithattu 13
53 Kadumeni 10
54 Kallyottu 13
55 Kayyor 23

56 Kodakkadu 23

57 Korayichal 7
58 Madikkai 20
59 Thrikkaripur 10
60 Nileshwar 20

61 Parappa 1

62 Poyinachi 8

63 Ramnagar 7
64 Valiyapoyyil 16

65 Cheruvathur 21

66 Karimoola 41
67 Munnadu 15

33
68 Thannoda 20

Total 1131

Weaving Unit For other related

activities
Kannur District

1. Anchampeedika 34 36
2. Cherukunnu 10 5

3. Eruvassi 8 4
4. Ettukudukka 6 3
5. Kakkara 11 6

6. Kannavamkolani 16 1
7. Kookkanam 15 6
8. Kunchimangalam 16 4
9. Kuttyattur 16 8
10. Kunnaru 24 2

11. Kannadiparamba 52 27
12. Malappattam 16 1
13. Maloor 11 6
14. ` Mananthery 17 7
15. Muthathy 21 7

16. Naduvil 11 5

17. Nelloonni 36 14

18. Papparatta 15 10
19. Nettoor 10 7

20. Parassinikkadavu 9 6

21. Pariyaram 5 5

22. Peralassery 3 2

34
23. Peravoor 25 3
24. Pullupara 10 8

25. Ramanthali 3 4

26. Thimri 8 7
27. Karivellur 8 6

28. Kandoth 14 3
29. Aryakandippara 11 9

30. Chelerimukku 9 9

31. Kappatta poyil 3

32. Kolangada Vayal 12 10

33. Kanjirod 12 1

34. Kannapuram 21 13
35. Kuttoor 12 1
36. Myladathodam 13 8
37. Meloor 17 3

38. Meenkunnu road 8 6

39. Shankara nellur 10 8

40. Kelakam 1 1

KASARAGOD DISTRICT
41. Munnad 10 5

42. Cheruvathur 14 8

43. Kayyoor 16 3

44. Korayichal 3 1
45. Parappa 11 8

46. Periyanganam 20 6

47. Ramnagar 5 5
48. Valiyapoyyil 10 6

35
 49. Thrikkaripur 3 6
50. Elambachi 14 1

KHADI SUB CENTRES

1. Karivellur 17
2. Vellur 37

3. Kunhimangalam 18
4. Pazhayangadi 14

5. M.C.P.S.Payyanur 8

Total 665 317

TABLE NO: 3.3

LIST OF EMPLOYEES
Sl.No. Designation Male Female Total
1 Director 1 - 1

2 Project Officer 1 - 1
3 Village Industries Officer 1 - 1

4 Junior accounts officer 1 - 1

5 Junior Superintendent 2 - 2
6 Co-operative Inspector 2 1 3
7 UD/LD Clerk 2 - 2
8 1st Grade /2nd Grade Assistant 5 3 8

9 Beekeeping field man 2 - 2

10 Bag Assistant 1 - 1
11 Spinning / Weaving instructor 41 54 95

12 Auditor 3 2 5
13 Driver 2 - 2
14 Sales Assistant 5 - 5

36
 15 Computer Assistant - 1 1
16 Artisans – i.e. piece rate workers 2680
under spinning and weaving unit

3.4 PRODUCT PROFILE

Generally product profile consists of the various products and various offered
by as company to its customers. The following are the various garments products
offered by Khadi to its customers.

1- DOTHIES : Dothies are one of the important types of garment product of

Khadi. Khadi manufactured dothies offered in cotton, Muslim, Polyster Clothes.
There are more than 5 verities it dothies offered by Khadi to its customers.

2- SAREES :

Another important type of Khadi garment is sarees. There is good market for
Khadi sarees in the market. Khadi produces sarees in skill, polywasthra, cotton
and Muslim clothes. It is mainly focused on women customers.3 -BED SHEET
& PILLOW COVER :

Now a day’s Khadi offering a variety of home linen products to its customers.
Bed sheet and pillow covers are the one it the important part of home linen
product of Khadi. There is a good market for Khadi garments in Indian and
foreign market.

4- READY-MADES :

As a part of diversification Khadi consist of shirt and churidars.

5-SHIRTING:

37
The important item of Khadi products which is popular in the market is the
shirting item of Khadi. Khadi shirting includes of cotton, polywasthra, non-iron
clothes, muslim clothes etc.

6- OTHER ITEMS:

Other items of Khadi products consist of mosquito net, operation gown, towels
customers, bed etc some of these are seasonal products.hese are the various
garment items offered by Khadi to its customers.

3.5 VILLAGE INDUSTRIES CENTRE AND ANCILLARY UNIT UNDER

THE CONTROL OF PAYYANUR KHADI CENTRE

1. BED MANUFACTURING UNIT

This unit produces superior silk cotton beds which are marketed
throughout the state it uses silk cotton for bed manufacturer, which is
purchased on quotation from “thiruvallur silk and cotton industries” at
Bodhinay Kannur. About 19 workers are encaged in the manufacturing by
beds.

2. HONEY PROCESSING UNIT

Honey processing unit has operation in the year 1996 at Kunhimangalam

in Kannur district. Honey processed at this centre is certified with the
prestigious AGMARK which enables the units to security position this
throughout the country

3. READYMADE PROCESSING UNIT

This unit has been operating since 1980 in the PKC. It manufactures
readymade shirts, saleable through “Bhavanas” and other items necessary
for Government hospitals. The unit has undertaken to manufacture of

38
 ‘summer cool’ shirts which were introduced by the Board. At present there
are 22 workers and I supervisor employed.

4. COTTON PROCESSING CENTRE AT ETTUKUDUKKA

This centre was established in 1992 with an investment of 2.5 crores for
the manufacture of roving for the production of Khadi Yarn. This project
was introduced with a view to provide efficiency in cotton processing.

3.6 ORGANIZATIONAL STRUCTURE OF PKC

The PKC is headed by a director who is assisted by the deputy Director and
Project Officer and other supporting staff. The Director holds a key position and
is responsible for the overall supervision and administration of the centre. All the
employees of PKC are government employees and their recruitment is made
through PSC test.

39
 CHAPTER IV

DEPARTMENTAL ANALYSIS

40
4.1 MARKETING DEPARTMENT

Marketing management employs tools from economics and competitive

strategy to analyze the industry context in which the firm operates. These
include Porter's five forces, analysis of strategic groups of competitors, value
chain analysis and others.[1]

In competitor analysis, marketers build detailed profiles of each competitor in the

market, focusing on their relative competitive strengths and weaknesses
using SWOT analysis. Marketing managers will examine each competitor's cost
structure, sources of profits, resources and competencies,
competitive positioning and product differentiation, degree of vertical integration,
historical responses to industry developments, and other factors.

Marketing function is a role which helps a company to identify and source

potentially successful products for the marketplace they operate on and then
promote them by differentiating them from similar products. It is a vital part of
any company.

Typical marketing function types within a larger business includes

performing market research, making marketing plan, and product development,
market development, market penetration as well as strategically taking care of
advertising, distribution for sale, pricing, after sales customer service and public
relations.

4.2 SALES & MARKETING IN KHADHI

The village industries products average sales by departmental sales outlets

which were only Rs 13.67 crore during 2004-14, jumped to Rs 31.2 crore .375 new
Khadi institutions were established after 2015 in some two-odd years, whereas the
number of new Khadi institutions established in 10 years' period between 2004 and
2014 was only 110 Incredibly, the total average Khadi sale, which was Rs 914.07

41
crore during the years 2004 to 2014, jumped to Rs 1,828.3 crore in three years after
that, i.e. between 2015 to 2018, with over 100 per cent increase,

Moreover, it said with the average Khadi sale of Rs 120.09 crore by

departmental sales outlets (DSOs) in the 2015-18 period, a growth of 168.24 per cent
has been recorded as compared to Rs 44.77 crore in the 2004-14 dec

4.3 MARKETING MANAGER

Marketing manager is an individual or an employee in an organization

who carries out marketing activities like branding, product promotion, new
product development, market study, customer relationship etc. The basic duties of
a marketing manager are to get new customers, improve product, deliver proper
communication and increase brand awareness, thereby increasing business.

A firm may have multiple marketing managers catering to the different

needs of a product. A marketing manager has to ensure that the product is
catering to the needs of the consumers, that proper distribution channels are set in
place, that the price of the product is in line with the firm expectations and the
consumer expectations and suitable promotion strategies are in place.

4.4 DUTIES OF MARKETING MANAGER

A marketing manager is the hub of sales administrative. He occupies a

place of pivotal importance. He is that person who embraces all those functions—
POSDCORB, so far as sales organisation is concerned. The duties of a marketing
manager vary widely from company to company, depending upon the size and
nature of business.

1. PLANNING FOR FUTURE

A marketing manager has to plan for the long range sales activities. It
involves decisions regarding the area of marketing, nature and number of

42
products to be distributed and the sales policy to be adopted. Sales budgeting help
in providing information of expected sales, revenues & expenses.

2. ADVISING THE TOP MANAGEMENT

Actual office operations are to be brought to the notice of top

management, as to what exactly is going on in his department. He is to give ideas
about expansion programmes and his contributions as to how to make the
programme a success. He is to enlighten the men at the helm of the affairs about
the past, present and future prospects of his department.

3. SELECTION AND PLACEMENT OF SALESMEN

“Right men for the right jobs” are the watchwords for a dynamic manager.
Scientific selection is negative process involving weeding out unsuitable
candidates followed by placement of candidates. Marketing manager is to consult
his assistants as to the number of posts, job specification etc., to undertake
scientific selection.

4. TRAINING THE SALES FORCE

Marketing manager, along with training departmental heads, is to plan for
training new employees and continuing training in the form of refresher courses
for the existing employees for providing information about operation of business
viz., house policies, house customers, employee’s plan of pay and benefits,
mechanics of making sales, credit and collection procedures, etc.

5. COMPENSATING THE SALES PERSONNEL:

The marketing manager is to decide the compensation policy that is
attractive and workable. Promotions, transfers from the part of this compensation
programme. Thus, cordial employer—employee relations act as the basis for the
success of sales organisation.

43
6. DIRECTION AND CO-ORDINATION:
A marketing manager has to select band of sales executives, assistants,
salesmen, clerical staff, who may not be doing well in absence of direction and
co-ordination.

Coordination promoted by the marketing manager helps in minimising

conflict and bringing about unity in diversity.

7. DESIGNING VIABLE SALES POLICY

Formulation of sales policy calls for the divergent factors that decide the
exact nature of it. It is the foundation for the marketing of goods. A sales policy
should take into account discount, price, terms of payment, way of distribution &
extent of publicity, type of products, etc. as they are responsible for its effective
implementation. Much depends on the efficiency of marketing manager to make
it so.

9. TO MEET CHALLENGING TASKS OF PUBLICITY & DISPLAY

Marketing manager should devaluate the existing publicity approaches as
to media, so that scientific selection is made to avoid or minimise the waste,
getting publicity budget prepared, reviewing and approving it in the light the light
of company situations. Again, it calls for display both internal and external and
the other aspects such as services to dealers, sales correspondence, giving
incentives to dealers and consumers etc.

44
 FIGURE NO : 4.1

STRUCTURE OF MARKETING DEPARTMENT

SENIOR MARKETING MANAGER

JUNIOR MARKETING MANAGER

MARKETING ASSISTANTS

45
4.5 MARKETING STRATEGIES ADOPTED BY KHADHI

Marketing strategies adopted recently by KVIC: Marketing strategy

includes all basic, short-term, and longterm activities in the field of marketing
that deal with the analysis of the strategic initial situation of a company and the
formulation, evaluation and selection of market-oriented strategies and therefore
contribute to the goals of the company and its marketing objectives. The
Marketing initiatives taken by Khadi to increase sales are as below:

1- INCREASE IN NUMBER OF SALE OUTLETS

Most of the sale happens from the Khadi outlets or franchise shops. Khadhi
has 7051 own stores and 2230 NGOs referred to as Khadi Institutions (KIs)
across the country through which it sells its products. It also sells through the
franchise stores. The franchise stores can be partly owned by KVIC at times and
some are completely independent. One of the new options which has recently
been introduced is to have small counters in a shop which has Khadi products.

2- EXHIBITIONS

As a part of the marketing and promotional activities the government

sanction funds for conducting exhibition activities either through KVIC or its
allied sister concerns . Since 1990 the government has put various exhibitions at
district level, zonal, state and national level . This helps in selling products and
also spreading awareness about genuine Khadi products. These exhibitions also
help the artisan to display their products thus resulting in employment and also
liquidating the products of Khadi.

46
3- BULK SALES

KVIC‟s one more innovating way isto make Bulk Sales to companies
who can use the products for CSR activities. 3) Promoting Khadi brand in
government offices: The government has taken initiatives to increase the sale of
Khadi by enforcing government employees in certain ministries to compulsory
wear Khadi clothes. The government is thinking to make Khadi compulsory to
wear on Friday in government offices. The present government in its campaign of
Make in India is making a lot of attempt to make Khadi the brand of India. In its
new endeavor KVIC is also promoting Khadi clothes in schools and colleges.

4- UP GRADATION OF EXPORTS PERFORMANCE

To promote KVIC products globally the government encourages

artisans and KVIC personal to visit abroad for participating in international trade
fairs/exhibitions and sales cum-study tour etc.

5- INCREASE OF CREDIT FLOW

The Union Government through the Ministry of Micro, Small and

Medium Enterprises, provides funds to KVIC for undertaking its various
activities under Plan and Non-Plan heads. These funds are provided primarily by
way of grants and loans, which the Commission in turn re-allocates them to its
implementing agencies, namely the State KVIBs, institutions registered under the
Societies Registration Act, 1860 and cooperative societies registered under the
Cooperative Acts of the State Governments, implementing banks, etc

47
6-MODERNIZATION OF STORES AND UPKEEP OF STOCK
In a globalized world it where technology and modernity are the key
for success, it is important that KVIC also improve its stores. In the new
millennium the government is renovating the stores and is giving them the look of
a modern showroom. Stock is what pulls the customer to the store so the journey
from the artisan to the store has been improvised and is faster.

7- FASHION TRENDS AND BRANDING

Few years ago, KVIC has engaged ace fashion designers from the
industry to give a new avatar to its product , which has bought about a huge
difference in the sales of Khadi items In order to improve the quality of
handcrafted Khadi, KVIC has tied up with the National Institute of Design (NID),
Ahmedabad; „Dastakar‟, Andhra Pradesh; IIT, Delhi; and Textiles Committee,
Mumbai

8- LOGO AND TRADEMARK

In the month of November of 2014 the MSME moved to register the logo
of Khadi and Village Industries Commission (KVIC) 'Khadi' as a 'word mark'. It
has also sought legal opinion to seek geographical indication. The logo speaks of
the brand and its identity and it also forms a direct link with the customer. The
trust that people have on Khadi product strengths once the Logo and trademark
are there on the products.

9- TIE UP WITH LOCAL BRANDS

Khadi being the National cloth has decided to integrate and tie up with the
local Indian market key notch players in Textile, craft and hand made products.
The main players in the market being FABINDA and RAYMONDS .They have

48
already agreed to devote a section to Khaki outfits in about 600 of their outlets.
These designs would have a khadi mark on them and sold under a new label
name, like for example, Fabindia will be selling these products as Khadi marketed
by Fabindia.

10) TECHNOLOGICAL INTERVENTION:

The failure of an organization also depends on its inability to maintain the
inventory / stock, raw material, production and sales statistics. The government
has recently taken out a tender to invite technology companies for the Design,
Development, Installation, Implementation and Support for Integrated Financial
Management System (IFMS). Delay in approvals and process in the government
department has led to the digitalized of all the process from stock inventory to
payment. It will also help in connecting all the outlets, production house across
the country through one payment process.

4.6 SALES OUTLETS

The marketing wing of the Khadi and Village industries functions directly
under the Board with a Director in charge of the marketing as the chief. In order
to assist artisans in marketing the Board has its own Office cum Shopping
complex in Kollam Pathanamthitta, Alappuzha ,Ernakulam, Thrissur, Palakkad,
Kozikode and Kannur Districts and at the sub office at Payyannur Khadi Centre.
The Board also runs sales outlets in all districts departmentally and on agency
basis. The sales outlet under the Board are known as “Soubhagya”. The Direct
Soubhagyas run by the Board are called ‘Khadi Grama Soubhagyas’ and the
outlets run by agencies are called ‘Khadi Soubhagyas’ and outlets attached to the
production centers are called ‘Grama Soubhagyas’. At present there are 30 Khadi
Grama Soubhagyas, 53 Grama Soubhagyas and 76 Khadi Soubhagyas and one
mobile sales van operated for the sale of KVI products in Kerala.

49
 The Board gives financial assistance to units to set up their own sales
outlets, for renovation or expansion of existing sales outlets, purchase of mobile
vans and organizing exhibitions to create awareness about Khadi and village
industries products. The Board has been participating in Indian Trade Promotion
Organization (ITPO). .

4.7 HONEY MARKETING DEPOT, TRIPUNITHURA

A Honey Marketing & Processing Depot has been set up at Tripunithura,
near Ernakulam. The unit procures raw honey from the individual bee keepers at
the floor rate prescribed by the cost chart committee. This step is intended to free
bee keepers from the exploitation of middlemen.

4.8 PRODUCTION DEPARTMENT

A production department is a group of functions within a business that

is responsible for the manufacture of goods. This can include just a few
specialized functions with all other work outsourced, or a fully functioning
department that converts raw materials, assembles components into finished
goods, and packages them.

The production department can be the largest organization within a business.

It may employee mechanics, machine setup specialists, maintenance
personnel, and machine operators.

50
4.9 PRODUCTION MANAGEMENT

Production management is ‘a process of planning, organizing, directing

and controlling the activities of the production function. It combines and
transforms various resources used in the production subsystem of the organization
into value added product in a controlled manner as per the policies of the
organization’.

4.10 OBJECTIVES OF PRODUCTION MANAGEMENT

The objective of the production management is ‘to produce goods services

of right quality and quantity at the right time and right manufacturing cost’.

1. RIGHT QUALITY

The quality of product is established based upon the customer’s needs.

The right quality is not necessarily best quality. It is determined by the cost of the
product and the technical characteristics as suited to the specific requirements.

2. RIGHT QUANTITY

The manufacturing organization should produce the products in right

number. If they are produced in excess of demand the capital will block up in the
form of inventory and if the quantity is produced in short of demand, leads to
shortage of products.

51
 3. RIGHT TIME

Timeliness of delivery is one of the important parameter to judge the

effectiveness of production department. So, the production department has to
make the optimal utilization of input resources to achieve its objective.

4. RIGHT MANUFACTURING COST

Manufacturing costs are established before the product is actually

manufactured. Hence, all attempts should be made to produce the products at pre-
established cost, so as to reduce the variation between actual and the standard
(pre-established) cost.

4.11 PRODUCTION IN KHADHI

Khadi production activity is spread all over India, mostly in villages and
also in small town. Yearly, India produces Rs.600 crores worth khadi and has
accumulate sales worth Rs.900 crore. Present target is to increase the khadi sale
to Rs 2000 crore in the next five years. The overall production of village
industries is Rs.18,000crore. There are more than 1 crore people attached with
Khadi and Village industries and most of them from scheduled and minority
caste.

At present Khadi fabric is used to produce ready made garments like

men’s short sleeve slack, long sleeve shirt, long kurtas, churidhar, dhoti, saree,
lungi, angavasthiram, shawl, pyjama, ladies kurtis, nighty long leisure robes are
being manufactured and sell in their own khadi gram odhyog bhavan showroom.

52
4.12 PRODUCTION CENTRES OF KHADHI

1-CENTRAL SLIVER PLANT, TRICHUR

The KKVIB has set up a Central Sliver Plant (Muslin Project) at Kuttur,
near Trichur for ensuring supply of sliver and roving to the institutions in the
State. The center caters to the need of sliver and roving to the institutions of some
other States also. The production carried out by the CSP in the year 2010-2011 as
439.89 lakhs (3,95,098 kgs) and sales effected is to the tune of 484.74 lakhs (
4,34,973 kgs).

2-RAW MATERIAL PRODUCTION CENTRE

The State has two raw material production centers for Khadi (rowing) one
at Trichur, which is directly run by KVIC, and the other at Ettukuduka, which is a
direct unit of KKVIB.

4.13 PRODUCTION PROCESS OF COTTON CLOATHINGS

1-BLOW ROOM PROCESS

 COTTON PROCESSING

Cotton which are obtained from the cotton planet having some imparities
like sand, stone etc, are taken for processing. During the drying and the loading
processing to many impurities are get into the cotton. To remove these impurities
there are some process which are called Blow Room process should be done is
closed warm room because in most condition the cotton will absorb moisture and
it will not suitable for making the thread.

53
 APRON PROCESS

There is long machine containing a long belt to feed the cotton. This
is used to remove the impurities for the cotton by the sliding of the cotton
through the belt. Some of the impurities will fell down through the belt.

 DEDESTER
This machine is used to remove the particles from the cotton. When
we feed excess amount of cotton to this machine, the machine will struck.
This problem may be overcome by pull out some of the cotton from the
machine manually with long steel pipes.

 ERM (TUFF SEPARATION)

This machine is also used to remove the impurities from the cotton.
This is done for separating the fibers from cotton. This makes the removal
of impurities from cotton.

 SKETCHER
This machine is used to make Laps. When certain amount of cotton
is wound on the lap, it will automatically drop down. The part of the
sketcher which does the rolling and finishing of laps is called finishing
sketcher. The laps are almost pure still. There are some impurities on it.

 CARDING
The laps are then feed into carding machine. The laps containing a
little impurity are removed by the carding machine. The laps are made to
carding laps in the carding Laps are like thick thread.

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  DRAWING FRAME
The drawing frame consists of machines which are drawing breaker
and drawing finisher. These 2 machines are used to make carding Lap
thinner. This is called Drawing lap

 SIMPLEXER OR RP WINGS
This machine is used for making thin thread and wound on the
fiber pipe. This roll of cotton thread is called silver. When the supply of
drawing Laps is topped the simplexer machine will stops, the thread will
join manually the start the machine.

 CHARKA
This is the oldest spinning machine. It issued to spin the thread
from cotton. Now in Khadi industry the modern from of Charka is used.
Using this type of Charkas at right silvers can spurn into find 33 count
threads. These threads are made into 1000 meters separate bundles.

II DYEING
Dying of cloths is done for coloring and gives strengths to the cloths.

 DYES
Some natural dyes exist, but most used today are synthetic. These are
organic chemical such as benzene. The dyes can be applied to the fabric or
fabric using either a direct or indirect process. Some of the dyes used in
Khadi are:

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  Brown R
 Red RB
 Black BB
 Blue RS
 Jade Green

 DIRECT DYING
In most industrial process today dyes can enter the fiber and colors. It is
one step without the need of mordent. The dye is dissolved in hot water
strained, and added to the Fabric. Sometimes the dye is mixed with salt to
help fix the color

 INDIRECT DYING
In some dying process a number of steps are needed to dye the fiber. In one
process a chemical called a mordent in first added to fiber, which is then
dyed. The mordent molecules fix the dyes to the fabric

III DYING PROCESS

 BOILING OF THREAD
The thread bundles are first kept to the tank for boiled with soap, oil and
caustic soda. It is boiled at temperature of 800C-1000C. The time required is
13-36 hours after boiling the thread is taken from the boiling tank and put
into Squeezing Machine for squeezing it.

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  DYING
 Take 40 degree hot water in a tank
 Add Caustic Soda and Soap oil to the tank (these are used to increase
solubility of water)
 Add the colour required and mix the colour well in water
 Mix the required cotton the tank. Mix well by turning the ends by
hands
 After 20 minutes take the thread from the tank and wash with Soap and
water and squeeze.
 After squeezing allow the thread to dry in shady place

IV WEAVING

One of the most common means of marketing clothes is weaving. This is

an ancient craft. Most weaving is carried out on a frame called Loom. These can
be either Machine powered factory loom on handloom. In Khadi industry
handlooms are used.

 LOOM
A set a parallel thread called WARP ARE stretched length wise on the
loom. The threads which are run width wise are called WEFT is carried
over and under the WARP by a device called SHUTTLE. This process
interlaces the WRAP and WEFT to make fabric.

 STITCHING
Once the wearing in finished the fabric taken for stitching

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 PATTERN
Once the design has decided, it is translated into pieces, made from a paper
or card. These are used as guide for cutting out of the Fabric.

 SEWING
The cut pieces are carried on the persons who job is to match them up for
the sewing machine. Each machinist concentrates on a particular part of the
garment. Such as SLEEVES, COLLARS etc.

 PRESSING
Once the clothes are sewn together, they are laid on large flat table to be
pressed. Then a final inspection is held to check the quality of the finished
garments.

 PACKING AND FOLDING

The last process is packing and folding the garments. These set of garments
are now beings sold to be the customers.

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 FIGURE NO :4.2

PROCESS IN KHADHI GARMENTS PRODUCTION

BLOW ROOM APRON CARDING

STITCHING WEAVING DYING

4.15 OTHER KHADHI PRODUCTS

1- KHADI CLEANSING LOTION NATURAL ALMOND

Non foaming, deep cleansing lotion, deep cleans to remove surface dirt
without disturbing the natural balance. Ideal for all skin types.

2-KHADI CLEANSING GEL MANGO

Deep pore cleanser with the goodness of mangoes, gives a fresh feel.

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3-KHADI PUDINA CLEANSER

Ayurvedic antiseptic pore cleanser which can remove all kind of makeup
including water-proof makeups. Suitable for all skin types.

4-KHADI SCRUB LOTION FRUIT RUB (WITH ALOE VERA & GULAB)

A gentle scrub with walnut and fruit extracts, removes dead cells and deep
seated dirt & impurities, while the lotion base retains moisture of skin when
scrubbing.

5-KHADI SOAPS

There are at least 15-20 varieties of soaps like natural saffron, neem-tulsi,
haldi-chandan, mint, rose, aloe vera, mauri strawberry, mauri lemon, mogra,
jasmine, rose-honey and many more with very very natural n pleasant smell.

6-KHADI MAURI HERBAL ORANGE FACE WASH

The difference in Khadi orange face wash and this face wash is that, this is
in lotion form and Orange gel face wash is in Gel form, in addition, this also have
goodness of Mauri, so choose according to your favorites

7-KHADI FAIRNESS CREAM SKIN-A-FAIR

it has a unique blend of fairness herbs like turmeric, aloevera and sandal
which helps to improve the complexion and even out skin tone.

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8-KHADI HERBAL HAIR CLEANSER KESHVARDHAK

An ayurvedic hair cleanser with extracts of Bhirangraj, shikakai, bhrami,

aristhak, tulsi and amla, which is specially formulated to counteract hair fall
problem.

9-KHADI GOLD MASSAGE CREAM

Khadi Gold Face Massage Cream will cleanse and massage your skin.
Infused with the richness of gold, the ions present in gold help in stimulating the
cells, nerves and veins in your body that leads to improved blood circulation.

10-KHADI MAURI ROSE-SANDAL POWDER

Khadi Natural Sandal & Rose Face Pack is an ayurvedic product, which
gives clean & polished look to the skin and improves the complexion.

4.5 FINANCE DEPARTMENT

The finance department has great importance in the success of any

business and it is the backbone of organization’s process and operations. No
business can run without finance and effective management of available finance
is the key of success. The role of this department is very vast and includes
recording of operating transactions, preparation of financial statements and then
analyze them. It also ensures that policies and internal mechanisms comply with
industry practices, human resources policies and regulatory standards.

The role of financial department hierarchy includes tax planning,

investment analysis, financial analysis and accounting. It has to assess operating
performance of the organization for profits and non-profits. The financial

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department hierarchy helps an organization’s management to understand
developments in economic activities as well as to enable them to take adequate
strategic decisions. The department is responsible for sufficient cash flow to meet
day-to-day activities of the company.

4.16 FINANCIAL MANAGEMENT

Financial Management means planning, organizing, directing and

controlling the financial activities such as procurement and utilization of funds of
the enterprise. It means applying general management principles to financial
resources of the enterprise.

4.17 SCOPE OF FINANCIAL MANAGEMENT

1. Investment decisions includes investment in fixed assets (called as capital

budgeting). Investment in current assets are also a part of investment
decisions called as working capital decisions.
2. Financial decisions - They relate to the raising of finance from various
resources which will depend upon decision on type of source, period of
financing, cost of financing and the returns thereby.
3. Dividend decision - The finance manager has to take decision with regards
to the net profit distribution. Net profits are generally divided into two:

4.18 OBJECTIVES OF FINANCIAL MANAGEMENT

The financial management is generally concerned with procurement, allocation

and control of financial resources of a concern. The objectives can be-

1. To ensure regular and adequate supply of funds to the concern.

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 2. To ensure adequate returns to the shareholders which will depend upon the
earning capacity, market price of the share, expectations of the
shareholders.
3. To ensure optimum funds utilization. Once the funds are procured, they
should be utilized in maximum possible way at least cost.
4. To ensure safety on investment, i.e, funds should be invested in safe
ventures so that adequate rate of return can be achieved.
5. To plan a sound capital structure-There should be sound and fair
composition of capital so that a balance is maintained between debt and
equity capital.

4.19 FUNCTIONS OF FINANCIAL MANAGEMENT

1-Estimation of capital requirements:

A finance manager has to make estimation with regards to capital

requirements of the company. This will depend upon expected costs and profits
and future programmes and policies of a concern. Estimations have to be made in
an adequate manner which increases earning capacity of enterprise.

2-Determination of capital composition:

Once the estimation have been made, the capital structure have to be decided.
This involves short- term and long- term debt equity analysis. This will depend
upon the proportion of equity capital a company is possessing and additional
funds which have to be raised from outside parties.

3-Choice of sources of funds:

For additional funds to be procured, a company has many choices like-

a. Issue of shares and debentures

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 b. Loans to be taken from banks and financial institutions
c. Public deposits to be drawn like in form of bonds.

Choice of factor will depend on relative merits and demerits of each

source and period of financing.

4-Investment of funds:

The finance manager has to decide to allocate funds into profitable

ventures so that there is safety on investment and regular returns is possible.

5-Disposal of surplus:

The net profits decision have to be made by the finance manager. This can
be done in two ways:

A- Dividend declaration - It includes identifying the rate of dividends

and other benefits like bonus.
B- Retained profits - The volume has to be decided which will depend
upon expansional, innovational, diversification plans of the
company.

6-Management of cash:

Finance manager has to make decisions with regards to cash management.

Cash is required for many purposes like payment of wages and salaries, payment
of electricity and water bills, payment to creditors, meeting current liabilities,
maintainance of enough stock, purchase of raw materials, etc.

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7-Financial controls:

The finance manager has not only to plan, procure and utilize the funds
but he also has to exercise control over finances. This can be done through many
techniques like ratio analysis, financial forecasting, cost and profit control, etc.

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 FIGURE NO: 4.3

STRUCTURE OF FINANCE DEPARTMENT

FINANCIAL DIRECTOR

CHARTERED ACCOUNTANT

INTERNAL AUDITOR

FINANCIAL MANAGER FOR ACCOUNTS

ACCOUNTANT

FINANCE ASSISTANCE FOR SALE

FINANCE ASSISTANCE FOR PURCHASE

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1-FINANCIAL DIRECTOR

He is responsible for overall control of organizations accounting function.

He has to formulate financial targets as well as budgets according to strategic
plans determined by board of directors. He has to manage policies of the
company regarding taxation, capital requirements, debt, acquisitions and equity.

2-CHARTERED ACCOUNTANT

Has to prepare tax return statements of all taxes. He has to establish an

efficient accounting system. He has to make careful analysis of accounts as well
as review of pervious accounting records. He has to prepare annual accounts and
have to manage taxation process of the company. He has to also deal with budget
control and investment projects.

3-INTERNAL AUDITOR

Internal auditor is responsible for officially examining the accounts of the

company an auditor may be a chartered accountant or a tax consultant.

4-FINANCIAL MANAGER FOR ACCOUNTS

He is responsible for interpreting and providing financial information. He

has to make monthly salary statement of all employees. He also monitors cash
flows as well as predicts future trends. He has to make research on factors
influencing on business performance. He has to analyze market and competitors
trends. He has to work for cost effective financial management to increase the
profit of the company

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5-ACCOUNTANT

Performs many functions such as collection and recording of data. He has

to analyze organization’s financial operations. He also reviews and analyzes
expenditure and budgets of the financial company. He has to review and monitor
accounting reports for completeness and accuracy.

6-FINANCE ASSISTANCE FOR SALE

He is responsible to prepare yearly budget plan for promotion of the

company. He has to keep record of expenditure required for sale transactions such
as salary of sale staff and advertisement expenditure for promotion of sale.

7-FINANCE ASSISTANCE FOR PURCHASE

He is responsible to keep record of all purchased items required for

business affairs. He is responsible to negotiate prices, to find out best services or
goods and choose suppliers.

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 CHAPTER V

FINDINGS, SUGGESTIONS AND CONCLUSION

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5.1 FINDINGS

 Highly service motive rather than profit.

 Lesser advertisement reduce sales turn over

 Small market place

 Cost of production is higher. Because it produce output through traditional

way.

 Employees are punctual

 Labour intensive

 Khadi products are popular in the market.

 Khadi products are 100% perfect are pure because Khadi follows a
traditional way of production without any changes but Khadi has
modernized production equipments.

 Khadi gets so many grand and other helps from government so Khadi can
provide good quality products at a reasonable price.

 There in an efficient management team.

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5.2 SUGGESTIONS

 Some people do not aware about the Khadi products, so sufficient

advertisement or publicity must be needed in between the people.

 The products of Khadi should be made available to everywhere in the

market and only in Khadi Soubhagyas and other Khadi Sales centers.

 Should giver strict supervision to workers at this works.

 Provide better working condition and training to work.

 Provide more welfare packages to workers.

 Marketing activity shall improve

 The workers should be punctual at their work

 The firm should reduce the cost of production and thereby increasing the
sale of production.

 Some sort of advertisement can be made so as to increase the demand for

the products thereby increasing the sale

 To give refreshment facilities to reduce employees stress.

 To avoid wastages and stress

 Introduce new incentive scheme to employees

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5.3 CONCLUSION

Khadi is modernizing now a day, because it introduces more and more

new garment products into market. Khadi use new equipments for production
without changing its traditional way of production. And Khadi produce so many
new products, but it mainly focused on Khadi garment production.

The firm is providing a wide range of products to customers. The products

are provided at reasonable rate to the high and middle class people. Even if the
firm is having an increased sale, it is not able to earn much profit. The over all
performance and working is going on well but still further improvement becomes
necessary.

Khadi and Village Industry has significant role in our society. Now Khadi
and Village industry commission increased production and marketing. It provides
large employment opportunities from the bow study; it is easy to understand the
production, production process, product profile..........

If we read this report we will get the production of the PKV.

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 BIBLIOGRAPHY

BOOKS

Mukesh Dhunna- MARKETING MANAGEMANT

A. Vinod - MARKETING MANAGEMANT

WEBSITES:
www.google.com
www.kvic.org
www.wikipedia.com
www.payyanur.com/khadi.htm
www.kkvib.org

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