CHAPTER 1

INTRODUCTION

1
1.1 INTRODUCTION

TEXTILE INDUSTRY

The Indian textile industry occupies an important place in the economy of the India
because of its contribution to the industrial output. It accounts for 14% of the total
industrial productions, contributes to nearly 30% of the total exports and it is the second
largest employment generating industry after the agriculture. The textile industry
provides direct employment to more than thirty million people. It is the second largest
sector, which provides employment in India.

The textile industry holds significant status in India. Textile industry provides one of the
most fundamental necessities to the people. It is an independent industry from the basic
requirement of raw materials to final products, with huge value-addition at every stages
of processing. Today, textile industry accounts for nearly 14 percentage of the total
industrial output. Indian fabric is in demand with its earthly colored, ethnic and many
textures.

The textile industry is the largest industry in terms of employment. It is also expected to
generate millions of new jobs in future. It generates massive potential for employment in
the sector from agricultural to industries. Employment opportunities are created when the
cotton is cultivated. It does not need any exclusive Govt support even at present to go
further. The main markets for Indian textile and apparels are USA, UAE, UK, Germany,
France, Italy, Russia, Canada, Bangladesh and Japan.

The history of textile industry is almost as old as that of human civilizations. In 6 th and 7th
century BC, the oldest record indication of used fibers comes with the inventions of flax
and wood fabric at excavation of the Swiss lake inhabitants. India had started culture of
silk during 400 AD. Men’s need for clothing has been constant since the beginning of
time and spinning of wool fiber into yarn and weaving of cloths have been staple
industries in large part of the world. The discoveries of various synthetic fibers like nylon
etc created a wider market for textile products and gradually lead to the invention of new
and improved source of natural fibers.

2
INDIAN TEXTILE INDUSTRY

The first textile industry started manufacturing in Calcutta (Kolkata) about 200 years ago.
Its nerve center is at Ahmadabad. Nowadays, it is mainly concentrated in places like
Mumbai, Calcutta (Kolkata), Surat, Banaras and Tamil Nadu. Some of the important
textile producers in India are ACME Clothing Private Limited (Mumbai), Bafna
International (Bangaluru), Classic Finishers (Mumbai), Ambuja Exporter Ltd (Gujarat),
K.G Denim Ltd (Gujarat) etc.

The textile industry is the largest industry of the modern India. It accounts for over 20%
of industrial production and is closely linked with the agricultural and rural economies. It
is the single largest employer in the industrial sector employing about 38 million of
people.

Readymade Garment (RMG) INDUSTRY in India has seen resurgence in the recent
times. The industry has witnessed sluggish growth in past decades; however scenario has
change substantially due to the globalization. Traditionally, Indians preferred dress
stitched by local tailors, growing fashion consciousness build brands apparel industry in
India. In this case, a man’s clothing segment accounts for the largest share (59 percent) of
the branded apparel market.

MAJOR MANUFACTURES

The largest apparel manufactures and exports were countries in the Asian-Pacific region
which included counties like China, Hong Kong, Philippines, Malaysia, Indonesia,
Bangladesh, Sri Lanka, Pakistan, Thailand, and India. The other major apparel
manufacturing nations were USA, Italy, Germany, and Mexico.

INDIAN SCENARIO

Textile industry provide one of the most basic needs of people and holds the importance
of maintaining sustained growth for quality of life. It has unique position as a self-reliant
industry, from the production of raw materials into delivery of finished products, with
substantial value-addition at each stage processing; it is a major contribution to the
country’s economy.

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Although the development of textile sector was earlier taking place in term of general
policies in recognition of the importance of this sector, for the first time a separate policy
statement was made in 1985 about the development of the textile sectors. The textile
policy of 2000 aims at achieving the target of textile and apparel exports of $50 Billion
by 2010, of which the share of garments will be $25 billion. The main markets for Indian
textile and apparels are Italy, Russia, Canada, Bangladesh, USA, UAE, United Kingdom,
Germany, France and Japan.

The main objectives of textile policy 2000 are:

1) To provide cloths of acceptable quality with reasonable prices for the vast
majority of the population of the country.
2) To contribute to the provision of the sustainable employment and the economic
growth of nation.

The textile industry is undergoing a major re-orientation towards non-clothing

applications of textiles, known as the technical textiles, which are growing roughly twice
the rate of textiles for clothing application and now account for more than half of the total
textiles.
Production: The processes involved in producing technical textiles required expensive
equipments and skilled workers and are for the moment, concentrated in developed
countries.

INDIA’S APPAREL INDUSTRY

The apparel industry is one of largest foreign exchange earners accounting for nearly 16
percent of the country’s total export. It has been estimated that the India has
approximately 3000 ready-made garment manufacturing units and around 3 million of
people are working in the industry. Today, not only the garment export business growing,
enthusiasm in the minds of the foreign buyer is also at the high. Many leading labels are
being associated with the Indian products.

4
India is increasingly being looked up on as a major supplier of high quality fashion
apparels & Indian apparels must to be appreciated in the major market internationally.

GROWTH IN INDIA

The concept of ready-made garments is relatively new for the Indians. Traditionally,
Indians preferred the dress stitched by the local tailors who has tailoring units in
townships. The growing fashion consciousness during the 1980s and convenience offered
by ready to wear garment were largely responsible for the development of branded
apparels industry in India.

Youth accessed to the fashion trends outside the country & the superior quality of fabrics.
The 1990s witnessed drastic change in the overall economic environment of the country.
This period was characterized by liberal trade & investment policies. The effect of the
liberalized policies was seen in the clothing industries as well. The men’s clothing
segments accounts for the largest shares (59%) of the branded apparels market. The
major players in the branded apparels market are Madura garments, Bombay Dyeing,
Raymond’s, Zodiac and Acme Clothing.

It is estimated that Indian sends 9 percent of their disposable income on clothing and
footwear etc, which is significantly higher than the United States (5%). A study
conducted in the late 1990s revealed that there has been a gradual increase in the
purchasing power of people. According to the report, the population in the income range
of Rs 45000- Rs 2500000 per annum was increase in at fast pace. In 1997-1998 there
were 33 million households in the income group and this number is expected to 75
million.

STRENGTH OF INDIAN TEXTILE INDUSTRY

 Huge capacity of textile production

 Efficient multi-fiber raw material manufacturing capacity

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  Large pool of skilled and cheap work forces

 Entrepreneurial skills

 Huge potential of export

 Large domestic market

 Very low import content

 Flexible textile manufacturing systems

WEAKNESS OF INDIAN TEXTILE INDUSTRY

 Import of cheap textile from other Asian neighbor countries

 Use of out dated manufacturing technologies

 Poor supply chain management

 Huge unorganized and decentralized sectors

 High production cost with respect to other Asian competitions

PROBLEMS OF INDIAN TEXTILE INDUSTRY

 Structural weakness in weaving

 Fragmented garment industry

 Rigid labour loss

 Inadequate capacity of the domestic textile machinery manufacturing sector

 Inadequate training facilities

 Infrastructure bottlenecks in terms of power, utility, road transport etc

 Fragmented and technology backward textile processing sector

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1.2 OBJECTIVES OF THE STUDY
The organization study was carried out in Aysha Hosiery Factory Private Limited, to
achieve the following specific objectives:

 To understand the organizational structure and functions.

 To gain knowledge about different departments of the organization and its
functions.
 To understand the key business processes and the use of information for decision
making at various levels in the organization.
 To conduct a SWOT Analysis of the organization.

1.3 METHODOLOGY
The organization study conducted is descriptive in nature. The following
methodologies were adopted for the study.

Data collection:

1. Primary Data
Primary data was collected through observation, personal interview, discussion
with managers and employees of the various departments of the organization. It
also included company’s internal records.
2. Secondary Data
Secondary data was collected through literature review which included,
publications, annual reports, journal, statutory report, website (official and others)
etc.

1.4 SCOPE OF THE STUDY

The study focuses on understanding the overall structure of the organization. The
study helps to get an overview of various functions carried out by different departments
of the organization. Through this study, attempt is made to analyse the overall

7
functioning of the firm and also the financial performance of the enterprise. SWOT
Analysis of the firm is also conducted.

1.5 AREA OF STUDY

The study was undertaken in Aysha Hosiery Factory Private Limited and the
respondents were the department heads and employees from various departments.

1.6 DATABASE
The study utilized both primary and secondary research techniques to ensure that
the foundation of business intelligence and insight is accurate, current and reliable.

1.7LIMITATIONS OF THE STUDY

The limitations of the study are the following:
 The time period available for the study was limited.
 Restrictions were imposed on interacting with officers as their work was not to be
interrupted.
 The available data is not sufficient to get the desired result.

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 CHAPTER 2

COMPANY PROFILE

9
2.1 ABOUT THE COMPANY

Aysha Hosiery Factory Private Limited was incorporated 81 years ago on Monday 08
May 1939 and it is registered at RoC Ernakulam as Private Company Limited by Shares
having authorized share capital of RS.2500000 and paid up capital of RS.2472800

The “AYSHA HOSIERY FACTORY (PVT) Ltd” is a one of the important hosiery
manufacturing firm in Kerala, Established in 1939.

The “AYSHA HOSIERY FACTORY” is located in middle part of Palaparamba,

Kuthuparamba in Kannur district. Workers quarters, canteen, post office and mosque are
also located outside of the factory gate. Kunhimayan Haji started his organization with a
great intention and keen sight to give life to his dreams. He was a dynamic personality
who has achieved highest caliber. The name Aysha was A.K Kunhimayan Haji’s
daughter’s name. The brand mark of “parrot on the tree” is also very popular from the
beginning of the company

The company made steady progress over the years and business expanded to its present
structure. Initially it starred as a weaving firm. To create an idea about under garments in
the mind of peoples, he started it is an under garments industry, today it is one of the
biggest hosiery industry in India. The company has a continued success in the
international market for the past 60 years. Aysha hosiery factory has a knitting capacity
of 300 meter per 8 hours.

Aysha is a fully equipped hosiery factory. They have good machineries and equipments
at all departments. It increases the entire productivity of the firm and reduces employee
grievances. Employees are fully satisfied with the job in Aysha. Aysha factory is one of t
he first hosiery factories in Kerala which is still working.

2.2 VISION OF THE COMPANY

To be amongst the most admired and trusted integrated textile company in India.

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2.3 MISSION OF THE COMPANY

 To manufacture world-class product of outstanding qualities.

 To encourage people’s ownership, empowerment and working under team structure.

 To attain highest level of efficiency, integrity and honesty

2.4 COMPANY DETAILS

Name : AYSHA HOSIERY FACTORY (PVT) Ltd

CIN No : U17293KL1939PTC001393

Status : ACTIVE

Class : Private

Category : Company Limited by Shares

Authorize Capital : 2500000

Paid -up Capital : 2472650

Registration Date : 08-05-1939

Business Activity : Manufacturing (Textiles)

State : Kerala

District : KANNUR

Address : PALAPRAMBA, (PO) NIRMALAGIRI, KANNUR, KERALA,

INDIA (670701)

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There are over 3 Directors/Officers that hold positions at AYSHA HOSIERY FACTORY
(PVT) Ltd

2.5 BOARD OF DIRECTORS

Managing Director : Mr. T.P MUHAMMAD

Director : Mr. TTP MAHMOOD

: Mr. PK Mayan Mohamed

Share holders : 48 members

Registered Office : Palaparamba, Nirmalagiri po, Via Kuthuparamba,

Kannur, Kerala

PIN : 670701

Tel : 0490-2361364, 23361063

Fax : 0490-2361232

Email : ayshakoothuparambha@gmaiil.com

3CI SCORE
 Good 0 25 50 75 100 70 3Ci SCORE for Aysha Hosiery Factory Private Ltd is 70
out of 100 which is considered Good In Industry

 Aysha Hosiery Factory Pvt Ltd is the sixth best company in India which is
involved in Manufacturing of linoleum and similar products, while there are 14
companies rated inferior than Aysha Hosiery Factory Pvt Ltd.

 Aysha Hosiery Factory Private Ltd is the second best company in Kerala which is
involved in Manufacturing of linoleum and similar products, while there are no
companies rated inferior than Aysha Hosiery Factory Private Ltd.

 This company is ranked 502 out of 5748 in India for its top line of business

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 (Manufacturing of other textiles n.e.c)

 This company ranked was 280 out of 3208 in India for its parent line of business
(Manufacturing of other textiles n.e.c)

2.6 COMPANY OBJECTIVES

 To supply quality products to the customers.

 To attain profit.

 Increase market share.

 Attain global presence in export.

 Fair to all.

 To provide employment opportunities to people.

2.7 BOOKS MAINTAINED

 Sales register,

 Purchase register,

 Cash book / Day book,

 General ledger,

 Fixed asset register,

 Debtors control register,

 Salary Account,

 Goods return register

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2.8 ORGANISATIONAL STRUCTURE

MANAGING PARTNER

EXECUTIVE DIRECTOR

GENERAL MANAGER

MANAGER

DISPATCH ACCOUNTS PRODUCTION HR Q.C STORE

MANAGER

PRODUCTION CUTTING RECUTTING EMB FINISHING

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2.9 PRODUCTS PROFILE

The main products produced by this company are vests, breifs and panties. The raw
materials are mainly purchased from Tiripur.

 PUSHPA : it is mainly produce to sell in local market and it is high priced

product
 JANATHA : it is low priced and quality product
 PREMTEX: made by silk yarn and it is very expensive.
 JUHU
 MAJOR
 LOONA
 DERB1
 SUPER
 COSSACK
 555
 POONAM

2.10 PRODUCTION PROCESS

Production process passes through several steps that consists of knitting, Fabric checking
bleaching, calendaring, cutting, over lock, arranging, booking, neck cutting, flat lock,
singer stitching, puller, trimming, final checking, speeding steam press, quality checking,
folding, hydraulic press, packing and stock dispatch.

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2.11 ADMINISTRATION DEPARTMENT

Importance of Administration Department

 To ensure optimum goals of the organization

 To avoid interruption introduction
 To ensure surplus and shortage of production
 To meet the need of expansion and diversification program
 To promote and develop a sense responsibility among executives
 To ensure on productivity or impression of planning.

BOARD OF DIRECTORS

MANAGING DIRECTOR DIRECTOR

DIRECTOR
P.K MAYAN P.K SHAMEEM
TTP MAHAMOOD MOHAMMED

2.12 FINANCE DEPARTMENT

Aysha Hosiery has an effective finance department. The department is headed by the
accounting officer.

The following are the important functions performed by accounting officer

 Maintenance of, bill receipts, vouchers etc.

 Checking payments notes, bill and supporting vouchers etc.
 Maintenance of cash book and bank book.
 Preparation of journals and ledgers
 Preparation of bank reconciliation statements

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 FINANCE DEPARTMENTS HEIRARCHY

BOARD OF DIRECTORS

MANAGING DIRECTOR

GENERAL MANAGER

FINANCE MANAGER

ACCOUNT OFFICER

ACCOUNTANT STOCK IN CHARGE

OFFICE ASSITANT

ATTENDOR

2.13 MARKETING AND SALES DEPARTMENT

a) SALES

In Aysha Hosiery Factory, the sales department deals all selling activities. The sales
officer is the head of this department.

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Types of Sales

Aysha Hosiery Factory has 3 types of sales. They are, Domestic sales, National sales and
Export sales.

i. Domestic sales
Sales inside Kerala are called Domestic sales. There are many agents in Kerala to
introduce Aysha Hosiery factory’s product in the domestic market.

ii. National sales

The sales outside Kerala are called National sales. Aysha Hosiery factory’s
products are also dispatched to Mumbai. Drawers are the favorite item of
Mumbai market.

iii. Export sales

Aysha Hosiery factory also export products to gulf countries like Qatar, Bahrain
and UAE. Now they are ready to introduce the goods to European market.

b) MARKETING

The Market is a group of potential customers for a particular product who are willing and
able to spend money or exchange, or other resources to satisfy their wants. Marketing
department consist of directors, managing director, general director, director of sales
officer, sales assistant and typist.

The main responsibility of this department is to ensure the receipt of good quality
products to their customers and the right time, at the right place, at reasonable price. The
marketing manager is the head of these departments. In India, the company markets its
products to Mumbai and Kerala. It sells its products in foreign countries like Bahrain,
Doha, Sweden. The company has a good trade mark. It is registered and legalized. The
packing is an important component of the product mix. It is the art, science and
technology of preparing goods for transport, sale and exchange. The packing is also
prevents from damages.

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OBJECTIVES OF MARKETING DEPARTMENT

The primary objectives of Aysha Hosiery are to give maximum satisfaction to the
consumer by giving quality products. The other objectives are as follows:

 Creation of goodwill by selling quality products at reasonable price.

 Increasing the profit through customer satisfaction.
 Ensuring the growth of the company.
 Increasing the consumption of goods.
 Reducing the cost by providing wide choice of goods to the customer.

DEPARTMENT HEIRARCHY

BOARD OF DIRECTORS

MANAGING DIRECTOR

GENERAL MANAGER

DIRECTOR SALES

SALES AND MARKETING MANAGER

SALES OFFICER

SALES ASSISTANT TYPIST

PACKING

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2.14 PRODUCTION DEPARTMENT

Production is an outcome of various inputs. The factors of production are material, land,
labour, capital and organization. Without making sufficient products, the organization
cannot achieve its goal.

PRODUCTION PROCESS

KNITTING

FABRIC CHECKING BLEACHING AND DYING CALENDARING

CUTTING

OVER LOCK FLAT LOCK PULLER STITCH

TRIMMING SINGER

FINAL CHECKING SPREADING STEAM PRESS

STOCK DESPATCH PACKING FOLDING QUALITY CHECKING

HYDRAULIC PRESS

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The production process of Aysha Company:

 KNITTING :
Making cloth or fabric from suitable yarn is knitting.

 FABRIC CHECKING :
The checking of fabric’s quality and damages are done in this process. Marking in
fabrics at damaged place will help the cutting employee to fine damages easily
and reduce wastages.

 BLEACHING AND DYING :

After knitting, the materials are taken to bleaching action. The items are checked
from the checking room and they were bleached. There are several steps in
bleaching. Mainly four employees are working in this section.

 HEATING AND CALLENDERING :

After bleaching and dying, the fabrics will hang in the heating room to dry. The
steam came from the boiler will help for drying of fabrics. Approximately a day is
needed to dry a fabric.

 CUTTING:
After heating and calendaring materials are cutting in different size and shapes.

 STITCHING :
It is the process of connection of fabrics to make items like vests, briefs, panties
etc. There are different types of machines are used for stitching. They are over
lock, flat lock, folder, puller etc.

 ARRANGING :
Arranging facilities to easy and fast stitching of neck of the vests.

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 TRIMMING:
It is the process of cutting of excess part of thread came out.

 FINAL CHECKING :
In this section, damages, size, stitching mistakes are checked.

 SPREADING :
Where the spreading of each item is occur on each paper board for steam press.

 STEAM PRESS :
It means the pressing of item using steam and gives them a good.0

 QUALITY CHECKING :
In this section size, quality, damages, number of items is checked. That helps to
reduce the complaints from the market.

 FOLDING :
Here the folding of item for easy packing is done. Folder must be very attractive
and neat.

 HYDRUALIC PRESS:
In hydraulic press, reduces the thickness of folded items.

 PACKING :
It is the final stage of production. In this stage the products are packed in
attractive and suitable packs.

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2.15 PURCHASE AND STORES DEPARTMENT

In Aysha Hosiery factory, the purchasing department is headed by purchase officer. He

should maintain stock of every item to continue the flow of working purchase of different
items done from different places. Purchase officer will act as a connection link between
management and sellers.

Purchase is the window to the outside world. Purchasing is to procure the material
supplier tools, equipments etc. Purchase department buy raw materials, parts, machinery
and services used by production system. The objective of purchase management is to
procure the right equipment materials, supplier and services in the right quality, of the
right quantity, from the right suppliers at the right times at the lowest price.

Purchase activities can be organized by using two basic approaches centralization and
decentralization. Many manufacturing organizations use a blend of these two approaches
to organize their purchase activities. The purchase manager, who heads the purchase
department, is responsible for developing venture networks, selecting suppliers,
negotiating contract terms and conditions with suppliers, and ensuring the timely delivery
of the required supplies whenever a new item is indented, the purchase manager must
determine whether to make the item in house or buy the item from external vendors and
suppliers. Many people are of the opinion that the employees working in the purchase
departmental are corrupt because the regular activities of the department involves huge
sum of money. Organizations should therefore develop guidelines on ethics for
employees in the purchase department.

a) YARN

The most important raw material in Aysha Hosiery factory is Yarn used for knitting.
Aysha Hosiery factory purchases yarn from Tirupur Textiles private Ltd. It is a firm
which provides quality goods to the customers. There is no agent for Aysha in purchasing
yarn. The type of transporting is through lorry (trucks).

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 PURCHASING DEPARTMENT DEPARTMENT

BOARD OF DIRECTOR

MANAGING DIRECTOR

GENERAL MANAGER

FINANCE MANAGER

PURCHASE OFFICER

STORES

Here all the purchased items are stored. The issuing of them is laced according to the
requirement from the required departments. The purchase officer must inform all the
details about stock to the management.

OBJECTIVES OF PURCHASE DEPARTMENT

 To locate products or new materials as per requirement.

 To keep sufficient inventories.
 To pay reasonably low price for the best products.
 To develop satisfactory sources of supply and good relation with suppliers.
 To achieve a good co-operation with management.

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2.16 PERSONNEL DEPARTMENT

Persons are most important asset in every organization. In Aysha Hosiery factory also,
labour force is very important asset and it is the success of the firm. For this purpose,
Aysha Hosiery factory is maintaining a department especially called as personnel
department. This department deals with labour welfare, wage fixation, grievance
handling, recruitment of new employee, promotion, transfer, demotion etc.

There are two types of wage payment system in Aysha Hosiery factory. They are time
wage system and piece rate system. The personal management is called as an inter
mediator between a management and employee. They help to reduce the distance
between them. If there are problems between management and employees, the personnel
department will act as intermediate.

Personnel manager is the head of personal department In Aysha Hosiery Factory. The
personnel manager must have some qualities. He will be socially responsible because a
firm is a part of society. So the maintenance of good relation with society will be better

Personnel management is related with the management of manpower in factory. The

important task of personnel management is to help every employee to grow himself to the
maximum. They also get a fair chance to develop potentialities at the fullest level and it
creates an atmosphere to work together with others to achieve the desired goals in the
Aysha factory.

WELFARE FACILITIES

Welfare facilities in Aysha Hosiery factory can be mainly divided into 2 categories, they
are:

a) Statutory facilities
In Aysha Hosiery factory, Provident fund, ESI, Labor welfare fund, canteen
facilities etc are come under this category.
b) Non Statutory facilities
Provided items like vests and brief yearly to all employees, holiday allowance,
bonus etc are giving to employees.

25
TRADE UNION
There are 4 trade unions in Aysha Hosiery factory. They are CITU, BMS, INTUC and
NLO.
Out of these an attendance card according to Factory Act 1948 is maintained there. A
wage register is also maintained under personnel department.

2.17 HUMAN RESOURCE DEPARTMENT

In Aysha Hosiery Factory, there are over 112 workers in the factory. The company also
employs special agents both in local and in international markets for smooth and quick
running of the company.

HR DEPARTMENTAL HERARCHY

MANAGING DIRECTOR

GENERAL MANGER

HR MANAGER

CLERK

WORKERS

26
Functions of HR Department in Aysha Hosiery Factory

 Developing positive interactions between the workers.

 Identify areas that suffer lack of knowledge and insufficient training

 Recruiting the work force and making provisions for expressed and promised
payroll and benefits.

 Empowerment of the organization, to successfully meet strategic goals by

managing staff effectively.

 Taking corrective steps such as transfer from one job to another job.

 Remuneration of all employees.

 Social security and welfare of all employees.

 Developing and maintaining motivation for all workers by providing incentives.

EMPLOYEE’S DETAILS

In the human department there are 3 people. They are senior Manager, Executives and
Supervisor.

There are around 40 workers in the main unit and over all in Kannur there is 550 workers
concerning all departments and units. Every department is headed by a senior manager
and his executives.

a) WAGES
The company provides adequate wages to the employees to maintain responsible
standard of living. The company maintain separate wages sheet for employees
were the amount of wages are paid and the details about incentives are recorded.
The wages are paid in accordance to the level of performance. For this purpose
employees are graded on the basis of performances. The grade given to the
workers are its follows

27
 The employees with below standard are given “C” grade and the wages will be
80% of fixed salary. The employees with average performance are given “B”
grade and will get full salary or determined. Those employees whose
performances are above standard will be given “A” grade; they will get fixed
salary and the allowances basic on their performance. If an employee has low
attendance, then salary is cut from fixed salary.

b) RECRUITMENT
Employees are appointed based on merit in the field of qualification and
experience. No special criteria for recruitment. If there is any vacancy in the
company, the personnel officer gives advertisement in newspapers acknowledging
the qualifications required for that job. The personnel officer receives the
application for the job with bio data. The personnel officer and the top
management interview the candidate.

c) TRAINING
On the job training facilities are provided to the new employees. This training
program helps to the employees to get more knowledge about their new job.
Usually, the first 3 months are probationary period. The personnel department
arranges training of these personnel. After training, they are permanent for the
post.

d) WAGE PAYMENT
Wages are paid to the workers according to the minimum wages Act as per the
factories Act. The company follows time rate system and piece rate system.
Wages is mainly based on type of work performed.

e) DISCIPLINE

Discipline is maintained through penalties and punishment for offences committed by the
workers.

28
 f) PERFORMANCE APPRAISAL

The performance is evaluated by direct supervisor or personnel officer.

g) LABOUR WELFARE

In Aysha Factory provides various labour welfare facilities to the employees. The
company provides health insurance and other facilities for the workers.

h) LEAVE

The workers get a total of 26 leaves. Assistant labour office provides 13 cash leaves and
the company offers 12 extra leaves.

i) EMPLOYEE PF

PF or provident fund is a certain percentage of amount fixed by the government for the
welfare of employees in the factory. It should be calculated on the basis of salary. The
employees are entitled to receive PF only after the probation period.

j) EMPLOYEE STATE INSURANCE (ESI)

EMPLOYEE STATE INSURANCE is the amount paid to the government in two forms
(from the employee and from the company).

Aysha Hosiery Factory conducts employees meetings. The meeting of the production
department is conducted ones in a month and the meeting of finance department is
conducted in every 6 months.

2.18 QUALITY CONTROL DEPARTMENT

Quality management system developed and implemented by Aysha Hosiery Factory

demonstrates its ability to consistently provide products that meet customer and statutory
and regulatory requirements and to address customer satisfaction through the effective
satisfaction through the effective application of the system. Aysha Hosiery Factory accepts

29
responsibility for the complete satisfaction of its customers. They exercise this
responsibility through adequate training of our employees, adherence to proven procedures
and total commitment to meeting and exceeding customer requirements.

30
 CHAPTER 3

SWOT ANALYSIS

31
3.1 STRENGTH

 Aysha Hosiery factory has strong financial reserves and returns.

 It is located in a proper place which gives advantages of storages and easy
accessibility to market. The location is Palaparamba which is below 4 kilometers
away from Kuthuparamba town.
 It has processes, systems and communication which provide competitive
advantages. That helps the company to compete with the competitors.
 Most of the workers in the company have been working there for many years. So
the company has dedicated employees.
 The company was started from 1939. So the company has good knowledge which
gained through many years of experience.
 There are a lot of machines. The machines are imported from places like England.
It is also one of the important strength of Aysha Hosiery Factory.

3.2 WEAKNESS

 One of the main important weaknesses of Aysha Hosiery factory is that, there is
no proper Research and Development department.
 The company is weak in supply chain management. There is poor knowledge in
supply chain management.
 The technologies used by the company have not been updated. The company is
not using advanced technologies.
 The factory is not using most of machineries. The most of the machineries left
useless. The efficient and effective usage of machines that left useless will help
the company to grow.
 Lack of employees is also a weakness for Aysha Hosiery Factory. The factory
does not have required number of employees for such a large company.

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3.3 OPPORTUNITIES

 One of the main opportunities for Aysha Hosiery factory is that there are different
market developments in this area. And also the textile industry plays an important
role in the economy of the country.
 The technologies in this industry are constantly evolving. That will enable the
firm to grow into higher profits.
 Possibility to distribute different products across the country with a strong
distribution channel.
 There are lots of opportunities in the global market like exporting the textile
products to other countries.

3.4 THREATS

 Fluctuation in the price price of the yarn is a threat for Aysha Hosiery Factory.
 Increasing the man power cost is also a threat for Aysha Hosiery Factory. The
machines are not automated in the factory. So the man power is the essential for
the every activity in the factory. The man power cost is also increasing day by
day.
 Competition from multinational companies is also a threat for Aysha Hosiery
Factory. But the company is continuously trying to compete very well.

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FINDINGS

While conducting this organization study, the main findings that I obtained are:

 The products are considered to be most durable and of premium quality

 There is a huge demand for the products like bed linen, apron, etc in the
international market.

 Since it is an ISO company, it haves very good quality products and effective
quality management system.

 Production department has hi-tech machines.

 The turnover ratio indicated that the fixed assets are not being effectively utilized.

 The management, chief executive and the executive partners were found to be
more knowledgeable and experienced to guide the firm and leave the work force
to function the business properly.

 Exchange rate fluctuations also affect the profitability of the company.

 The major part of Aysha Hosiery Factory market constitutes the export market.

 The promotional activities followed by the firm are not quite satisfactory.

 Any change in export policies of Indian Government with respect to handloom

industry affects the company’s performance.

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SUGGESTIONS

 Production cost of the firm should be reduced to lowest extend and effective
control must be imposed on indirect expenses.

 The technologies should be change in the company.

 The products should be capable of correcting the misconception of the public

about handloom products.

 Promotional measures like advertisement should be increased by the company

through internet and trade magazine.

 An integrated marketing department should be set up to concentrate the marketing

section alone.

 A fully fledged market information system must be established to know the latest
market trend.

 The company can give importance to local trade also apart from exports.

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CONCLUSION

Aysha Hosiery Factory Pvt Ltd is the one of the leading manufacturing company, started
its operation on 1936. The organizational study in Aysha Hosiery Factory Pvt Ltd helped
me to know better about the organization performance evaluation and the system
followed for it.

The study about hosiery manufacturing is very interesting. From the study, I found that
Aysha Hosiery Factory should improve its relationship with consumers, dealers, agents.
And also I found some valuable suggestions to improve the effectiveness of Aysha
Hosiery Factory.

Aysha Hosiery Factory is known for its high quality products even through it are highly
priced. The company has proper accounts and up to date information about company
records. The accounts are audited by chartered accountant every year.

The production has been effectively supervised. The company used high quality raw
materials for production leading to high quality goods. The company has faced the
employees strike only two times.

I would like to conclude that Aysha Hosiery Factory Pvt Ltd is one of the best
manufacturing companies in Kerala. It has kept its credibility for the past 81 years and it
will continue this trend in the coming years also.

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BIBLIOGRAPHY

 Company Documents

Websites:

 www.ayshahosiery.com
 www.textileindia.com
 www.economictimes.com

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