AN ORGANISATION STUDY ON FOAM MATTING

(INDIA) LTD, ALAPPUZHA

Report Submitted to the University of Kerala

In partial fulfillment of the requirements for

The Degree of Master of Commerce

Submitted by

ALEENA MARIYA ZACHARIA

Candidate Code: 59019136001

Final Year M.COM – Finance Stream

Under The Guidance Of

DR SREEDHAR P NAIR

Department of Commerce

MARCH 2021

An Organisation Study on Foam Mattings (India) Ltd, Alappuzha

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 DECLARATION

I Aleena Mariya Zacharia do hereby declare that the Internship Report entitled “ AN
ORGANISATION STUDY ON FOAM MATTING (INDIA) LTD, ALAPPUZHA”
submitted to University of Kerala for the Award of the Degree of Master of Commerce
under CBCSS is a bonafide record done by me under the supervision of Dr Sreedhar P
Nair, Department of Commerce, St. Michael’s College, Cherthala, and it has not
previously formed the basis of the award of any Degree or Diploma or other similar title
to any candidate of any University.

Place: Cherthala Aleena Mariya Zacharia

Date:

An Organisation Study on Foam Mattings (India) Ltd, Alappuzha

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 CERTIFICATE

This is to certify that the Internship report titled “AN ORGANISATION STUDY
ON FOAM MATTING (INDIA) LTD, ALAPPUZHA” is a bonafide work carried out
by Aleena Mariya Zacharia, in partial fulfillment of the requirement for the Degree of
Master of Commerce under my supervision and guidance.

Place: Cherthala

Date: Dr. Sreedhar P Nair

Head of the Dept. Commerce

St. Michael’s College, Cherthala

Counter signed:

Dr. Sreedhar P Nair

Head of the Dept. Commerce

St. Michael’s College, Cherthala

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 ACKNOWLEDGEMENT

I Aleena Mariya Zacharia, express my sincere gratitude to all those who have helped
me directly and indirectly for doing my Internship report.

It gives great pleasure to place on record my sincere thanks and deep sense of
gratitude to Foam Mattings (India) Ltd for the cooperation I have received for the
successful completion of report titled “AN ORGANISATION STUDY ON FOAM
MATTING (INDIA) LTD, ALAPPUZHA. First of all, I wish to express my heartfelt
gratitude to God Almighty for his abundant blessing showered on me.

I express my deep sense of gratitude and indebtedness to Dr. Sreedhar P Nair, my

guide and Head of the Department of Commerce, St. Michael’s College, Cherthala, for
immense help and inspiration towards the completion of this work.

I also take this opportunity to express my sense of gratitude to all my respected

teachers in the Department of Commerce.

Finally I extended heartfelt thanks to my friends, whose co-operation helped me, a lot
for the successful completion of this Internship report.

Place: Cherthala Aleena Mariya Zacharia

Date:

An Organisation Study on Foam Mattings (India) Ltd, Alappuzha

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 CONTENTS

SL NO TITLE PAGE NO

1 INTRODUCTION 6-7

2 INDUSTRIAL PROFILE 7-9

3 WORLD SCENARIO 9

4 INDUSTRY IN INDIA 9

5 COIR BOARD OF INDIA 10

6 INDUSTRY IN KERALA 10-12

7 COIR INDUSTRY IN ALLEPPEY 12-13

8 COMPANY PROFILE 14-16

9 CERTIFICATIONS 16

10 MISSION 16

11 VISION 16

12 COMPETITORS 16

13 FINANCIAL STATUS 17

14 WELFARE MEASURES 17

15 DEPARTMENTAL PROFILE 18

16 ORGANIZATIONAL CHART 19

17 SWOT ANALYSIS 20

18 CONCLUSION 21

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 INTRODUCTION

The organization study was conducted in FOAM MATTINGS, Alappuzha.

Form Matting (India) Ltd (FOMIL) is a Government of Kerala undertaking. Founded in
1979, is engaged in the production manufacture and marketing of coir, jute and sisal
products.

An organization studies encompasses the study of organization from multiple

view points, methods and level of analysis. An organization study involves the study of
the structure and functioning of its department. Organization study enables to understand
that how management has. been - arranged its resources to achieve the goals. An
organizational study helps a business student to understand the proceedings in' an
organization and the practical knowledge about the concern. It also sometimes known as
organizational science, encompass the systematic study and careful application of
knowledge about how people act within organizations. Organization studies sometimes
considered as a sister field for, or over arching designation that includes the following
disciplines: industrial and organizational psychology, organizational behaviour , human
resources and management.

To get an insight in to the functions of an organization, Organization Study works as

a part in the curriculum. It gives an opportunity to understand the functioning of an
organization through the co-ordination of different department and familiarize us with the
organizational atmosphere. A personal interview was conducted and also observation was
made to find out the details about the company. Secondary sources are also used in this
data collection. The organizational study was conducted to find the out the working of
the organization and also to study about the departments and their functions. The
functioning of each department is important because this will help in the growth of the
organization.

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 Coir is the native name of the fiber extracted from coconut husk, the fibrous mass
surrounding coconut, the fruit of the perennial plant cultivated extensively in the tropics'.
There is every reason to believe that the word 'Coir' has its origin from the Malayalam
word 'Kayar' which means a cord, string or yam spun out of fiber extracted from the husk
of the coconut. Cocos fiber or coir extracted from the husk of the coconut is classed
among the industrial hard-fibers which enter the world market in the form of fiber, spun
yam or floor coverings. Kerala, the land of coconut palm, got its name by this fact from
the Sanskrit word 'Kera', the name for coconut tree. The coir industry occupies and
important economy of Kerala. Coconut husk is the raw material of coir industry. The
development of coir is there for naturally associated with the location of coconut
production because of this the coir industry located in Alappuzha.

INDUSTRIAL PROFILE

The industrial growth of Alleppey attracted the foreigners at the very early stages.
The hospitality British supremacy and the dynastic rule attracted the foreigners to
Alleppey. Under the circumstances entrepreneurs like the east India Company came to
the western cost of Kerala. They found that Alleppey is most suitable for trade and they
made Alleppey an industrial center for trade. Even at that time in land water route were
sufficient for transportation of goods. Opinion of Alleppey port for foreign trade
developed the possibilities.

There was a chain of coir factories at Alleppey which belong to the foreign
entrepreneur. Huge factories such as Aspin wall, Williamgoodacre, Alleppey Company
where situated near the banks of the canals. The native entrepreneurs also entered in to
this field. Alleppey become one of the busy towns of coir factory workers, thousands of
workers worked in these factories connected industries also flourished. Markets and
trading centers were developed. Financial stabilities were seen in very field. They
invented small machine for the speedy production of coir mats and matting's. But later
due to many reasons big factories disappeared from Alleppey. Now their place-offices,

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some of the factories still exist under the ownership of native industrialist.
Unemployment and poverty became the uninvited guest of Alleppey.

According to the report published by the Coir Advisory Board in 1970, there were
35000/- workers in 1940, where as in 1970, it admonished to 2500. Deindustrialization
like dust at noon was started at early 19.00. Manual labour of skilled workers at lower
post was available. Be-sides all these Kerala was granary of raw-materials. Due to this
favourable condition, Alleppey became the industrial capital of Travancore.

The coconut tree known as Kalpavriksham are seen on either side of the lagoons
and back waters as well as on the sea shore. The raw husk which made through different
process and the finished product such as mat, matting's etc are produced particular thing
of coir industry is that skilled labour are available there we can make this industry is that
skilled labour are available there we can make this industry much profitable with less
expense. Raw materials also should be available in plenty. Taking in to consideration all
these things, many foreign entrepreneurs came to Alleppey for starting coir industry.

The first coir factory in Kerala was started in Alleppey 1859 and it was named as
Darasmail .But histories were occupied by play grounds and port reveals that before 1859
itself coir mats, matting etc. reached the foreign countries. It is said that the halls of St.
George where decorated with coir mats and coir products. The founder of Daragsmail
was an American who belongs to Irish Republic known as James Para. It was who
started mechanization in coir industry. The reasons for these are assessed as many.
After Second World War the British quitted India, failure in the agricultural field, the
failure of employer and employ relationship are the various reasons for the deteriorating
conditions of coir industry. The factories Act which was came in to existence in 1940
gave a lot of incentives to the worker in the big factories.

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 Instead of established in various aspects of factories act industrialists decentralized
the coir unit by giving huge retirement benefits. In spite of all these reasons there are
some local reason also some political decisions of the Government also stood the way.
The major part played goes to the interportal convention. The major and minor ports
were held by Travancore and Madras Government treaty was signed between them about
Cochin Port.

WORLD SCENARIO

As stated earlier coconut husk being the only raw material for the coir industry,
coir production depends entirely on the production of coconuts. Simply it can be stated
that, the total number or' coconut produced in the world provides equal number of husk to
the coir industry. Presumably the coconuts husk available to the coir industry during the
period 2009 would be 77135 million husks which are equal to the production of
coconuts. Though coconut is grown in a number of countries in the world, coir industry
proposed commercially only in India and Sri Lanka because of the unique geographical
and historical reason. Indeed, there is so much potential to develop the coir industries
in the major coconut producing countries such as Indonesia and Philippines.

INDUSTRY IN INDIA

The Denmark make latex Backing Plant, the only one its kind in India, is a case in
point. It provides superior quality, besides the advantage of producing the highest quality
latex backed matting's that meets international standards. It has a capacity to latex back
3.6 million Sq Mt... of matting's per annum, on a three shift basis complimenting the
technology, FOMIL has a wide range of traditional handloom component the biggest
capacity in India. It enables us not only to provide a very large collection of designs, but
also helps as provide ample employment opportunity, directly and indirectly.

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 COIR BOARD OF INDIA

Coir Board of India is a Statutory body established by the Government of India

under a legislation enacted by the Parliament namely 'Coir Industry Act 1953 (45 of
1953)'for promotion and development of Coir Industry in India and up gradation of
looms to increase productivity. The Coir board is established for promoting the overall
development of the coir industry and upliftment of the lining conditions of workers
engaged in this traditional industry.

The Coir Board consists of a full-time Chairman and 39 members, as provided in

section 4 of the Coir Industry Act, 1953, representing all stakeholders in coir
industry. The functions of the coir board for the development of coir industry, inter-alia,
include undertaking scientific , technological and economic research and development
activities; collection of statistics relating to exports and internal consumption of coir
products; development of new products and designs ; publicity for promotion of exports
and internal sales; marketing of coir and coir products in India and abroad ; prevention of
unfair competition among produces and exporters ; assistance in establishment of unit for
the manufacture of products; promotion of Co Operative organization among produces of
husk or coir fiber or coir yam and manufacturers of coir products; ensuring remunerative
return to producers and manufacturers etc.

INDUSTRY IN KERALA

The history of coir and its association with the state of Kerala dates back · to the 19th
Century. Sandwiched between the Western Ghats on the east and the Arabian Sea on the
west, Kerala is one of the most beautiful states in India. A tropical paradise of waving
coconut palms and wide sandy beaches this thin strip of coastal territory slopes down
from the mountain Ghats in a cascade of lush green vegetation and varied fauna . One of
the most commonly seen tropical trees in Kerala is the coconut tree. In fact, even the

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name Kerala is derived from this tree. Everything from Kerala's culture to its dishes is
evolved around the coconut tree.

Alleppey is the nerve centre of Kerala's famous coir industry here, one can see
coconut husks being beaten in to fiber for making beautiful mats and other coir products.
Both men and women are activity involved in the production of coir. The women are
mainly involved in the yam spinning sector and the men in the product weaving sector.

Coir industry enjoys the status as the largest cottage industry in the state of Kerala,
giving employment to over a million people. Kerala also has very fine natural harbor
located at Cochin. From the ancient times itself Cochin had found a place in the minds of
Europeans as a trading centre because of its port and spices. Some of the historical
monuments left behind by the early travelers at Cochin are the Chinese fishing net that
were introduced during the medieval ages by traders from the port of Kublai Khan. St.
Francis church considered as the oldest European church in India was built by the
Portuguese sailor Vasco Da Gama during the period 1503-1524. The Jew Synagogue
built by Jewish settlers in the period 1568 is another notable historical monument.

The economy of the district is predominantly based on agriculture and marine

products. Though the district is industrially backward, some traditional industry based on
coir and products, marine product, handloom, different types of handicraft, Toddy
tapping etc... have been dominating the scene from the very early times. The easy
availability of raw materials and existence of back waters and canals suitable for the
writing and green husk and accessibility of transportation are the main factors for the
development of this industry. Arabs had carried on trading coir products from every
ancient time.

The manufacture of mats and matting's was first introduced in 1859 by James
Burragh, and American who founded the firm MIS Burrah Smail ltd., At Alappuzha with
offices in London and New York street is known as the traditional home.

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The coir board was established by the central Government under the provision of coir
industry act 1955. There is a coir research institute functioning at Kalavoor . The national
coir training and designing center were also established at Alappuzha in 1965.

Coir is the most important commodity manufactured in Alappuzha, Kayamkulam,

Kothamangalam, Komalapuram, Mannancherry , Mohamma and Cherthala lime shell in
Aroor kutty and Kodamthuruthu , plywood in Chengannor , KL eltron in Aroor ,
Potassium Chloride in Mavelikkara and Coconut in tannermukkam are also worth
mentioning and figure in the industrial map of Alappuzha. The other important
commodities manufactured in these towns are copra, coconut oil, glass mats, marine food
and matches.

Coir fibers are found between the husk and the outer shell of a coconut. The
individual fiber cells are narrow and hollow, with thick walls made of cellulose. They are
pale when immature but later become hardened and yellowed as a layer of lignin is
deposited on their walls. There are two varieties of coir. Brown coir is harvested from
fully ripened coconuts. It is thick, strong and has high abrasion resistance. It is typically
used in mats, brushes and sacking. Mature brown coir fibers contain more lignin and less
cellulose than fibers such as flax and cotton and so are stronger but less flexible. They are
made up of small threads, each about 1 mm long and 10 to 20 micrometers in diameter.
White coir fibers are harvested from the coconuts before they are ripe. These fibers are
white or light brown in color and are smoother and finer, but also weaker. They are
generally spun to make yam that is used in mats.

COIR INDUSTRY IN ALEPPEY

Note that coir was something new to Alleppey, Coir had been in use in various
forms and coir making was prevalent around the world from Belgium Congo to Guam
and from Venezuela to Eritrea, a long time before darrah's factory came up in Alleppey.

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The hope feels in England that provided raw materials to the beer industry used coir
ropes in large quantities on the farms, so did the olive oil presses in Turkey , bringing out
the versatility of the coconut fiber .

The golden textured Indian coir fiber, which earned it the unofficial brand name
'global fiber' captured European and world markets in no time. Since coir yam and fiber
could be most economically moved by well-developed water transport to Alleppey, a
thinly populated, with communication facilities by road was sparse, but had facilities for
shipping the products, with two canals connecting the port and back waters, coir
industrial units came to be concentrated in and around Alleppey due to the availability of
cheap labour anq abundance of raw materials. Convinced by the potentiality of the fiber
and yam, Mr., Darragh, came to Alleppey which was the chief port of the state and
started a manufacturing unit with the establishment of the first coir factory in India at
Alleppey in 1859 by Mr. James Darragh, an American of Irish origin. He enlisted the
help of the foreign trader called Henry Smail and the factory known as "Darragh Smail
& Company"

Native entrepreneurs were not far behind and large Indian firm also took shape.
Alleppey co., c. George peter& sons, Pitchu Iyer and Sons, Coir floor furnishing Co
Empire coir works, commercial emporium, Charankattu coir mfg .Co, Travancore mats
and matting's Co, Davaswomchira coir fabrics, Kochupillai and Sons , Koncherry Coir
factories were a few of the large establishment of native origin established then. By 1967,
a little over a hundred years after the first coir factory was the established as many as
1402 of the 1831 coir units in Kerala were in Alleppey, establishing the coastal town as
the unchallenged headquarters of the coir industry.

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 COMPANY PROFILE

Foam Matting and (India) ltd is a Government of Kerala undertaking (public

enterprise) in-corporated in 1979 with an authorized capital of Rs 3 crore (Appx $
8,50,000). FOMIL is engaged in the promotion, manufacture and marketing of coir, jute
and sisal products - Matting's, Door mats, Rugs, Carpets and a host of other environment
friendly products. . Company has recently released novel gift packs of foot mats, carpets
and floor decors made from coir and jute fiber

The essence of FOMIL product is eco-friendliness. Percent of its products and

made from natural fibers like coir, jute, .sisal, cotton sea grass, flax paper and hemp. The
initial cost of the project was partially financed by ICICI, IDBI, IFCI, and SBI.

The company employs are a team of highly professional and specially trained
manpower occupied to dexterously handle its various activities. The team ensure quality
product like matting, rugs, carpet, doormat and the host of other environmental products.
FOMIL is thus waving a new vision and equipping itself to meet the demand of 21st
century. FOMIL's wide range of products is well complimented by its asset on
technology. Infrastructure and machinery every possible effect has been made to meet the
production facility nothing less than world class. The latex backing plant imported from
Denmark, for eg.is the only one of its kind in India; it has a capacity to latex back up to
3.6 million Sq Mt of 4 M width per annum on a three shift basis.

Other state of the art equipment include a modem dye house fully automatic power
loom, semi-automatic loom , auxiliary facilities and an indigenous power source of
uninterrupted production. The key emphasis place on HR has also facilitated the
development of a fine tuned manpower, based on efficiency and commitment by constant
interaction and a full proof communication mechanism, FOMIL as an organization has
been on grown curve all along.

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 The result is there for all to see. We have enjoyed a definite edge over similar products
in the market mainly because of our constant quality standards prompt delivery schedules
and a unique and outstanding presence in international market such as European Union,
USA, Middle East. The authorized capital of the company is Rs 5,50,000 equity share of
100 each issued, subscribed and paid up share capital of Rs 5,15,23,000 divided in to
515230 equity share of 100 each fully subscribed by government. While the bottom line
matter to FOMIL, we focus our attention on excellent in all areas of production. Our
prime concern includes individual growth, team performance and complete success of the
company that is why personal play a major role in very stage of FOMIL growth.

Today a highly motivated and skilled manpower totally devoid any chilled labour
forms the very back born of FOMIL. Our HRD is totally committed to the achievement
of corporate designs stringent measures are taken for recruitment, selection, placement
and rotational of personal with the required skill and expertise in FOMIL: Our personal
harness their talents and capabilities to provide quality product and service. No wonder
the product we markets are of the highest standards. Today our overriding emphasis on
human resources has grown to be out unique selling point two after all it's the people that
market the product.

Since its inception, FOMIL has been guided by the belief that technology is the Key
to quality. Today FOMIL is well equipped with the latest in technology, be it fully
automatic and semi-automatic power looms, auxiliary facilities or indigenous supply
supplement. The Denmark make Latex Backing Plant, the only one of its kind in India, is
a case in point. It provides superior quality, besides the advantage of producing highest
quality latex backed matting's that meets international standards. It has a capacity to
latex-back 3.6 million sq.mt. of mattings per annum, on a three-shift basis.

Complementing the technology, FOMIL has a wide range of traditional handloom

component-the biggest capacity in India! It enables us not only to provide a very large

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collection of designs, but also helps as provide ample employment opportunity, directly
and indirectly.

CERTIFICATIONS

FOMIL is India's first integrated ISO 9001:2008 and ISO 14001: 2004 certified Coir
products manufacturing public sector undertakings.

MISSION

The main mission of the company is to increase the popularity of coir products and
to increase the production and the export the coir products to other countries. It also aims
of giving employment to local people in the country. There by the company
trying to earn maximum profits to the government.

VISION

The main vision of the company is to increase the productivity and to increase the
export by 2013 .FOMIL start their own showrooms in different parts of the states.
FOMIL is going to install too more power looms in the company. They are also trying to
increase the export and their by trying to capture the foreign markets.

COMPETITORS

The main competitors are:

 Palm Fiber (India) Pvt ltd

 NC John & Sons ltd
 The Alleppey Company ltd
 William Goodacre &Sons India Pvt Ltd

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 FINANCIAL STATUS

The authorized capital of the company is Rs.550 lakhs equity share of 100 each.
Issued, subscribed and paid up share capital of Rs.515.23 lakhs divided into Rs.515.23
equity share of 100 each fully subscribed by Government.

Foam Matting's was working on loss from 1980-1992.From 1992-93 to 1999-2000

the company made profits. Again from 2000 to 2003 there were losses. The major
problems of the company leading to poor financial performance are reported as
management related aspects.

WELFARE MEASURES

Employees will get PE,ESI minimum bonus and gratuity benefit coir industrial relation
committee (CIRC) decided the percentage of bonus January to May that is for five month
bonus is paid in September the rest four months bonus is paid April every year.

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 DEPARTMENTAL PROFILE

A department is a distinct section of the business establishment concerned with a

popular group of activities of the actual nature of department in which a business house
can be divided depends upon the size of establishment and its nature. Departments
companies a framework of the happen in a company.

1. Purchase Department

2. Production Department

3. Personnel Department

4. Finance Department

5. Marketing Department

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 ORGANISATIONAL CHART

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 SWOT ANALYSIS

Strength

 Foam Matting has a good brand image in the market

 High quality products
 Experienced employees
 Eco friendly products are produced
 Better geographical location
Weakness
 There is number of competitors in coir export market
 Generally very low advertisement are given to the products
 Labour problems
 Lack of motivation
 Lack of manpower
Opportunities
 Availability of materials to produce variety of products
 The products made out of jute, coir, sisal, etc. have much demand in the
international markets
 A lot of potential domestic market is left behind
Threats
 Increasing the competition
 Increase the price of raw materials
 Strike from the labour or trade union
 Time to time policies of the government.

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 CONCLUSION

I am please to conclude this work by stating that the management of Foam Mattings
(India) Limited really deserves appreciation for the efficient and effective functioning of
the company.
Foam Matting (India) Limited has only one unit. The organisation consist of a
Managing Director ,Finance Manager ,Personnel Officer and Commercial Officer ,
Matting Plant Officer, Plant Manager, Plant Engineer , Product Development Officer and
Administrative staff of the company.
The company is using latest technologies in production so as to market products
having international quality. FOMIL's wide range of products is well complimented by
its accent on technology, infrastructure and machinery. Every possible efforts has been
made to make the production facility nothing less than world class. The organisation has
always succeeded in maintaining the transparency in every activity and operations so
performed. But like any other public sector undertakings FOMIL also facing the
problems etc. it reduces the good result of the team work of various departments.
The main objective of the study is to know detailed about FOMIL, the study helped me in
understanding various departments of FOMIL.

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