EXECUTIVESUMMARY

The MBA course offered by the VISVESVARAYA TECHNOLOGICAL UNIVERSITY has its
own unique syllabus which requires its MBA students to undertake an internship with any of the
leading business houses for a period of 4 weeks.

An Organizational Study on Malabar Spinning and Weaving Mills helps to understand how the
organization is working. This study is helpful for the top level management to find the problems
in the organizations and its effective remedy.

The report deals with the introduction to the industry profile and to the company profile. Later
part of the report is concerned with specific topic covering company profile of Malabar Spinning
and Weaving Mills. This report mainly consists of nature of the business and infrastructural
facilities that have been provided in the company. Its vision-mission, workflow model and its
future prospects are also covered. A separate focus has given towards the study of the
organization. The structure gives the information about the board of directors, and various
functional departments, the training methods the company follows in updating the knowledge of
employees, duties and responsibilities of executives and other are narrated. The strategy with the
company adopts to eliminate their wastes, shared values that if the company to achieve its
objectives have also been included.

1
 CHAPTER : 1

INTRODUCTION

2
 CHAPTER-1
INTRODUCTION

1.1 INTRODUCTION ABOUT INTERNSHIP

As the world of business is changing very fast, we know that the theoretical knowledge
alone will not fulfil the needs of business school students. For a management student is
very important to know the activities of any business. In view of this fact the scheme of
MBA course provide an opportunity to expose the student to an industry and its
operational condition.
Organization study deals with critical evaluation and analysis of all aspects of a particular
firm. An organization study involves the study of the structure and the functioning of its
various departments. Organizing or organization is one of the important functions of
Management. Organization may vary, but they have certain common features. All are
collection of people linked together by formal and informal relationships. It is the
correlation of hierarchical orders with identical boundaries. So the organization study is
important for futuremanagers.
The organization selected for doing the organization study is Malabar Spinning and
Weaving Mills. The data is collected from the organization by the way of direct
interaction and getting data from past record kept in organization. Almost all the
organizations are different but they have similar features.

1.2 OBJECTIVE OF THE STUDY

The organizational study as a part of the MBA course is aimed to acquire the practical
knowledge about the functions of theorganization.

 To understand knowledge about functional as well as managerial aspects of

Malabar spinning and weaving mills
 To compare theoretical knowledge with actualpractices.

 To understand the various departmental functions that ensures smooth running of

theorganization.
 To analyse various departmental functions processes carried out in Malabar
3
 spinning and weaving mills and to know about its futureplans.
 To undertake SWOT analysis and to give suggestions if any

1.3 INDUSTRY PROFILE

COTTON TEXTILE INDUSTRY
The country’s cotton production has been steadily on the rise with better farm Practices. The
average yield has increased to 500 kg per hectare. From a level of importers of cotton, India
has become an exporter of cotton earning a name in the international market. Presently India
is second largest cotton producer in the world next to US and about to overtake the US as the
number ONE in the next couple of years. It is the result of various factors. Primarily because
of rising cultivations of Bt cotton (Bacillus thuringnsis) and reduce the farmers input costs,
while the yield as well as quality are substantially much larger compared to traditional
varieties.
In view of this development, the cotton cultivation acre age has been steadily going up in
India. The farmers have become more knowledgeable to follow scientific methods to cultivate
high yielding long staple cotton varieties. Besides individual mills are also simultaneously
taking steps to improve the cotton production along with Technology Mission on cotton
(TCM), the cotton development research Associations of organizations (CITI), South Indian
Textiles Mills Association(SIMA) and Kerala State Textile Corporation (KSTC). The
resultant factor is quality and quantity of raw material supply has substantially improved in
the country. Due to globalization of our economy, the conscious of quality inputs and pricing
have become competitive to the international standards and prices. Supply of quality raw
material availability sources of raw material from major cotton exporting countries. Every
organization is a deliberate and planned Endeavour of people whose common goal can be
achieved through attainment of targets and goal by individual members in it. No organization
can survive for long unless it takes care of prudent utilization of resources particularly human
resources.
In brief, good business is generally the result of good organization which can emerge only if it
consists of good people who work together as a team. The textile industry occupies a unique
place in our country. One of the earliest to come into existence in India, it accounts for 14 per
cent of the total industrial production, contributes to nearly 30 percent of the total exports and
is the second largest employment generator after agriculture. The Indian textile industry is one
of the largest in the world with a massive raw material and textile-manufacturing base. Indian
economy is largely dependent on the textile manufacturing and trade in addition to other
4
major industries about 27 per cent of the exchange earning are on account of export of textiles
and clothing alone.

In India organized textile mill sector has increased from 1787 in 2003-04 to 1789 in2004-05.
During the year 2003-04 the production of yarn was 3051.07 million kg and it had increased
to 3220.59 million kg in 2004-05. The number of workers worked in textiles mills during the
year 2003-04 was 9,28,000 and it have decreased during the year 2004-05 was9,18,000.India
has the second-largest yarn-spinning capacity in the world (after China), accounting for
roughly 20 percent of the world’s spindle capacity. India’s spinning segment is fairly
modernized; approximately 35 to 40 percent of India’s spindles are less than 10 years old.
During 1989-98, India was the leading buyer of spinning machinery, accounting for 28 per
cent of world shipments. India’s production of spun yarn is accounted for almost entirely by
the ―organized mill sector,‖ which includes 285 large. Man-made fibers, wool and silk
segment grew by modest 4.5 per cent per annum during the 5-yearperiod 2000-01 to 2005-
06.During the first year of quota-free global trade, production increased leaps and bounds.
Textiles production increased 10 per cent over 2004. The growth was fuelled by a 22 per cent
rise in production of other textiles (including gap parels). Cotton textile also posted an
increase of nine percent. In the last six years, an estimated US$ 6.7 billion has been invested
in the textiles sector, aided by the Technology Up gradation Fund (TUF) scheme. The TUF
scheme expires in March next year (2007) and the quotas on China will be lifted in 2008.
Hence, companies will continue to add capacities over the next year. Also, according to
CRISIL, the sector is likely to rise over US$ 3.5 billion from the capital markets in the next
few years.
The cotton textile industry, one of the oldest and major consumer industries in India, has
assumed national importance by virtue of size, investment, output and employment. The
industry produces a wide range of fabrics to suit specific needs of consumers. Further, the
cotton textile industry occupies a pre eminent place in the Indian economy by contributing a
major share and to the countries industrial production and providing cloth to its millions. The
industry also serves by providing direct employment to 60,00,000 workers in several of its
related activities. India is one of the largest textile producing countries in the world. The share
of the industry in the export basket of India is around 20%. However, textile industry is vast
developing sector and when the competitions are exorbitant especially in its design and
quality we have to adopt modern technology management, machine so as to complete with
other countries in the international market.

5
 CHAPTER – 2

ORGANIZATION PROFILE

6
 CHAPTER-2
Organisation Profile
2.1 COMPANY BACKGROUND

Malabar spinning and weaving mills is one of the premier textile industrial establishments in
Kerala. Ever since its inception, this mill has played a dominant role in the industrialization of
the whole Malabar. It is the first textile mills in Kerala and cotton textile is the first industry in
the whole Malabar. This mill was honored with a ― Certificate of merit form the Government
of India for its outstanding performance in exporting in 1975.The mill, popularly known as
―Thiruvannur cotton mill‖ is located in an area of 14.75acres at Thiruvannur which is 6
kilometers south-east to Kozhikode town. It was in the year1884, the foundation stone for this
mill was laid down by W.H. Will Kingston, the district and sessions Judge of Malabar. The
site for the factory was initially brought from the famous―KozhippuramTharavadu on lease
for 99 years.
In its initial stage the company had made an opportunity to give employment to 200labourers.
By using its own fund the company started a general hospital under the name―Prince of war.
The same hospital is still functioning at Panniyankara in Kozhikode under the jurisdictions of
corporation of Calicut. The management had to close the company several times due to
financial stringencies. The subsequent closure due to financial losses in the years1966, 1969
and 1976 compelled the Kerala Government to authorize the power of the company to Kerala
State Textile Corporation [KSTC] under the relief undertaking Act in1978 for 5 years. It was
in the year 1983 the Kerala Government decided to take over the mill completely and the name
has been changed to Malabar Spinning & Weaving Mill in 1989, the management stopped the
weaving section of the mill due to financial losses. Fifty percent of the weaving workers
voluntarily retired and the remaining were transferred to spinning section.

2.2 NATURE OF BUSINESS

THE COMPANY AT A GLANCE
Company address: Malabar spinning & weaving mills,Thiruvannur Nada, Calicut-673029.
Year of commencement: 1884
Company owned by: Kerala state Textile corporation
General manager: MuhammedSherif
Situation: Six kilometers south-east to Calicut town

7
 PRODUCT
Cotton yarn

2.3 VISION, MISSION AND QUALITY POLICY

VISION

“To enlarge export related activities through better sales and marketing procedure and to
make cotton textile corporation as a large industrial sector in the Indian economy”

MISSION
 To increase the production capacity of the mill in three times more than the present
production capacity through modern spinning machines and innovative techniques.
 To improve the quality of yarn by the way of adopting better production process and using
modern methods, ideas, equipments.
 To install new machines and equipments and conduct other development activities for the
growth of the mill.
 Construct more units and go downs to increase the existing production capasity and to keep
more cotton materials for marketing’
 Motivate workers by providing better working facilities and conducting development
programs and providing adding incentives for work.

QUALITY POLICY

To stay as market leader by supplying product of high quality and value, we will achieve this
as a term by confirming to operative standards and continually improving over the operation,
process and product quality. Every employee of this company will be involved individually
and as a team to achieve our policy goal.

8
2.4 PRODUCT SERVICE PROFILE

The products produced in the Malabar spinning mills are as follows,

PRODUCT:
COTTON YARN
PRODUCTION RESOURCES
1. Raw material - cotton
2. Electrical power
3. Labor
4. Stores
5. Packing material

PROCUREMENT OF RAW MATERIALS

Presently Cotton is used as raw material which is bought from local and other states. Depending
upon the yarn demand situations, the management will take orders for the raw cotton and likewise
the production takes. The major contribution of cottons where from Andra Pradesh, Tamil Nadu,
and Karnataka etc

2.5 FUTURE GROWTH &PROSPECTS

India is the world’s second largest producer of textile and garments and the world’s third largest
producer of cotton after China and the USA. The Indian market is also the second largest in terms
of consumption of Cotton, after China.

One of the oldest and the largest textile industries in the world, the Indian textile industry is
currently estimated at US$ 150 Billion as of December 2018 and is expected to reach US$ 250
Billion by the year 2019. The Indian textiles industry, carrying hand-spun and hand-woven textile
sectors at one end of the spectrum and capital intensive sophisticated mills sector at another end
of the spectrum, is extremely vast and varied. The Indian textile industry contributed 7 percent of
the Indian industry output in the year 2017-2018. Know to be the second largest employment
generating sector in the country, the Indian textile sector contributes to 2 percent of the country’s
GDP and provides direct employment to more than 45 million people. The financial year 2018
took the Indian textile export to US$ 39.20.

The growth in building and construction is expected to raise the demand for non-clothing textiles.
9
Following factors work as the strength of the Indian textile industry

 The remarkable increase in the income level of the Indian population.

 Abundant availability of raw materials such as cotton, wool, silk, and jute result in a
continuous increase in the demand in the Indian textile industry.

 Easy access to low cost and skilled manpower offering a competitive edge to the industry.

 Better assistance in terms of building market entry strategy for global organization by the
management consulting firms in india.

10
2.6 ORGANISATIONAL STRUCTURE

Fig No: 2.1. Organization Structure

CHAIRMAN

M.D

GENERAL MANAGER

FINANCE
MARKETING

PRODUCTION PERSONAL OFFICER

(Junior Manager) TIME KEEPER
(Assistant Manager Spinning) SALES
(PRODUCTION SUPERVISOR) GODOWN KEEPER

Source: Own Sketch

11
Organizational structure is defined as formal and informal framework of policies and rules
within which an organization arranges its lines of authority and communications and allocates
rights and duties. Organizational structure determines the manner and extend to which roles,
power and responsibilities are dedicated, controlled and coordinated, and how information
flows between levels of management. This structure depends entirely on the organization’s
objectives and the strategy chosen to achieve them. An organizational chart illustrates the
organizational structure. Success factors of organizational structure are decentralized
reporting, flat hierarchy, high transient speed, high transparency, low residual mass,
permanent monitoring, rapid response, shared reliability and matrix hierarchy.

An organizational structure defines how job tasks are formally divided, grouped and
coordinated. There are six elements that managers need to address when they designed their
organization structure. These are work specialization, departmentalization, chain of command,
span of control, centralization and decentralization. There is a well defined organization
structure in Malabar Spinning and Weaving Mills. The corporate office has a unique
organization structure headed by the Managing Director followed by different directors
heading various areas like materials and export division, manufacturing, engineering etc.

2.7 DEPARTMENT PROFILE

The different departments in the company include the following:

 ProductionDepartment
 SystemDepartment
 Human ResourceDepartment
 MarketingDepartment
 FinanceDepartment

PRODUCTION DEPARTMENT

Production is the fundamental activity of business. In the production department employee

motivation is very important for the objective achievement as desired by the manufacturing
Director or Top management. A lot of motivations measures are enforce which leads very
high productivity through the quality products.

12
The products produced in this company are as follows,

1. 60s Carded warp

2. 64s Carded warp
3. 60s Combed warp
4. 64s Combed warp
5. 67s Combed warp
6. 120s Combed warp
7. 72s P/C Blenede warp yarn

Production department consists of line staff and employee staff follows the instruction of
production manager under the directives of Managing Director, production is going on in a
very systematic manner. That is the responsibility delegated to each section supervisor for
taking appropriate decision.

Every section in the organization is very interesting especially the production section. In the
production department the motivation is very important for the objective achievement as
desired the Managing Director or top management.

13
PRODUCTION PROCESS
Fig No: 2.2. Production process

Mixing

Blow Room

Carding

Drawing

Simplex

Ring Spinning

Cone Winding

Packing

Source: Own Sketch

MIXING AND BLOW ROOM
Bales are different variety of cotton are opened and layer of cotton from able each are fed
alternatively with a view to obtain uniform blend. For getting different counts as yarn, cotton of
different variety and soft waste are mixed in a predetermined proportion. The cotton for each
mixing is fed into the plant in the blow room where external impurities are removed. The
compressed cotton opened into small tufts and a lightly compressed continuous sheet known as

14
LAPS are rolled upon cylindrical rod. The waste obtained in the process are droppings, quality fly
and lap bits. In the case of chute feed blow room the cotton converted into sliver bye-passing
carding.

CARDING
In this department, the cotton is completely opened into individual filters. Cleared by removal of
NEPS and foreign matters and silver is produced which is collected in cans. The waste in the
process is sliver waste cylinder fly, flat strips, roller strips and sweepings.

COMBING
In combing process cotton fibers are separated by needles and predetermined part of sharp fibers
is removed as waste and sliver is formed with suitable drafting. The fibers are arranged in parallel
format combing is an optional process of manufacturing better quality and finer counts as yarn.
This precedes the drawing and sliver laps process feeding.

DRAWING
In the drawing frame, sliver is produced by combing a specified number of sliver and stretching
them proportionately, the waste arising in the process is sliver waste and sweeping.

SIMPLEX
In this process, the thickness of drawing sliver is reduced and sliver is give twist and wound on
the bobbing. The production depends upon the spindle speed and twist per inch, number of
spindles etc. the waste collected in the process is roving ends and sweepings.
RING FRAME
The final yarn is spun on ring frame by drafting and twisting the rove from simplex. The draft end
twists vary depending upon the count, quality of yarn required. The yarn is collected by winding
on cops.

CONE WINDING
The yarn from ring frame is wound in cones suitable for market. In this process faults like thin
and thick places are removed by passing through slit cleaner. The auto corner has facility of
electronically cleaning the yarn and splicing instead of knotting in the conventional cone winder.
Saleable hard waste is obtained in this process.

15
 DOUBLE WINDING
Two yarn threads are wound parallel on a cheese on double winder.

DOUBLING
The yarn received from double winding is twisted on ring doubling machine and wound on cops.
This yarn is taken to cone winding department for winding on cones for market.

PACKING
The yarn is packed in the poly woven bags for the market.
-Loading
The cotton yarn cones will be loaded to very carefully without getting wet and all.
 One cone’s weight will be 1.25Kgs.
 One bag will having of 40 cones and the weight of one bag will be 50Kgs.
 160 bags will be there in one load.

Unloading
The raw cottons will be coming in bail forms weighing from 180Kgs to 200Kgs. The raw cotton
will be coming from Gujarat, Andhra Pradesh etc. The raw cotton will be carried out carefully out
to the Go downs and from their each bail will be taken for cotton mixing and for the production
of yarn.

16
 HUMAN RESOURCE DEPARTMENT

Fig No: 2.2. HR Dept. Structure

GENERAL MANAGER

PERSONAL OFFICER{H R}

TIME KEEPER

Source: Own Sketch

OBJECTIVES OF HR DEPARTMENTS
 Man power planning
 Recruitments
 Inductions
 Wages and salary administration
 Statutory compliance
 Leave administration
 Greivances redresser
 Personal counseling
 Compensation and benefits
 Welfare
 Performance evaluation

17
Sources of recruitment
Recruitment is the process of filling the vacancies. It is the first steps in selection process. In
Cotton Mill direct recruitment method is used frequently for recruitment .The firm places job
advertisement in Malayalam and English newspapers. And in TV, media and tries to attract as
much as caliber people from the outside.
The company also have internal recruitment for filling the post by efficient and skilled workers
from the rank , promotion and Corporation have preferred local candidates who belongs to
surroundings.
There will be notice displayed on the notice board of the company and outside of the company
and like that workers will be recruited. As it is a Govt company staffs and managers will be
recruited according to P.S.E exams.

Methods of selection
The basic requirement for a employees is 10th pass and other office staffs and all will be
according to the Govt. norms. The General Manager will conduct the interview, and from that he
will appoint the employee. While selection they will try to avoid very sick person and old
persons.

Training & Development for employees

There will be regular training & development programs for all levels of employees, i.e. Senior
Management to lowest level workers regularly.

Training need analysis

How the training need is analyzed for present employee, based on their performance or while
technology advances. To improve the quality of production or to reduce the cost factor or
avoiding accidents. Training need analysis is mainly done when a new worker joins the company
or when a new machine is placed then for the machinery handling and maintenance. Training
Analysis (sometimes called Training Needs Analysis (TNA)) is the formal process of identifying
the training gap and its related training need.

1 INTRODUCTION
2 DESIGN INTEGRATED TRAINING ANALYSIS
3 TRAINING ANALYSIS PROCESS

18
 INTRODUCTION
Training can be described as ―the acquisition of skills, concepts or attitudes that result in
improved performance within the job environment. Training analysis looks at each aspect of an
operational domain so that the initial skills, concepts and attitudes of the human elements of a
system can be effectively identified and appropriate training can be specified.

TRAINING ANALYSIS AS A PROCESS OFTEN COVERS:

 Review of current training

 Task analysis (of new or modified system)
 Identification of training gap
 Statement of training requirement
 Assessment of training options
 Cost benefit analysis of training options

Training Analysis is most often used as part of the system development process. Due to the close
tie between the design of the system and the training required, in most cases it runs alongside the
development to capture the training requirements.

DESIGN INTEGRATED TRAINING ANALYSIS

K Tara Smith proposed and developed tools and methods for an integrated approach Design
Integrated Training Analysis, where the trade-offs between design and training are both assessed in
the light of the understanding of the operational tasks. This is being followed in Malabar Cotton
Mills. This approach also used information regarding recorded critical incidents to review
proposed training and to provide traceability between hazards and training.

TRAINING ANALYSIS PROCESS

Over the last 20 years the critical nature of the man-in-the-loop has changed from simply manual
dexterity and procedural operation to a state in which their decision making, cognitive abilities,
data assimilation, communication skills, and attitude are all crucial. In addition the job structure of
the personnel operationally involved with modern systems has diversified in direct proportion to
the complexity of the technology. This has fuelled the need for a formal approach.
19
The task of training can be broken down into a number of discrete components, each addressing a
different part of the overall learning process.

LABOUR WELFARE FACILITIES

There are several welfare facilities some are canteen, rest room recreation room, library etc. Some
of the welfare activities undergone in the company are as follows,

FIRST AID APPLIANCES

The first aid boxes of cupboard shall be distinctively marked with a red cross on white background.
First aid boxes shall contain sterilized dressing, sterilized burn dressings, one bottle of
mercurochrome solution in water, and one bottle of adhesive plaster, sterilized eye pads, tablets of
aspirin or any other analgesic. Polythene wash bottle containing potassium permanganate crystals.
These first aid facilities are provided here in all departments.

CANTEEN
The company has a canteen which is one of the most efficient parts of the company. The canteen is
working in all the shifts. The facilities are available to all the employees. Each employee is given
tokens monthly. The management charges only a nominal amount for the fund. The amount is
deducted from the salary of the employees.

HOSTEL
The company provides the facility for workers to stay within the campus of the company by
having a hostel with it. With this facility, workers gain the place for shelter with free of cost. As
per management side, they can acquire labour at exact time for working.

TOILETS
The toilets are built separately for each department with good water facility. For workers it is built
separately in two areas for the convenience of the worker.
APRONS MASK AND CAPS
To safeguard the workers from the dust, company is providing aprons, masks and caps for each
worker, working in the company.

20
PENSION SCHEME
The scheme has been formulated for those employees who have retired from their job.

Pay role processing

Pay role is according to the hierarchy of the organization. For the Managers and for the staff as per
the Government norms the salary will be there, for the permanent workers the daily wages will be
about 175 and for the trainees 125 excluding the other beneficial payments and allowances.

HR policies & frame working

General Manager, H R and his team in consultation with Management develops HR policies. The
human resource department in an organization is a link between job seekers or employees and the
management. The role of a human resource (HR) department varies from interviewing potential
candidates, to providing the best possible atmosphere for task efficiency at a minimal cost to the
company. The HR policies in organizations relate to corporate nationality, fair employment, family
oriented personnel, health care, and place of work or domestic violence policies. HR policies differ
from organization to organization. Effective HR policies and practices not only draw boundaries
for employees but also recognize and address their needs. Fair employment policies normally cover
sexual harassment, equal employment, compensation, and career planning. Family oriented
personnel policies lessen stress and permit workers to do their best. These include policies for
flexible job schedules and dependent care benefits. There is a tendency amongst employees to test
limits and act creatively in workplace situations, so business houses also need a strategy for
developing, communicating and implementing HR policies that reflect their standards of
acceptable behavior.

Outsourcing of HRM process

Usually when there is a need of HR then from other Govt. organizations labors will be called out
on contract basis. Suppose where is an urgent then the labors will be hired from sister companies.

Grievance handling method

Generally, grievances means any factors involving wages, hours of work or condition of work
environment. By grievances we can see that mostly between the trade unions and the Government.
So the trade union leaders will be out for open discussion and by that meeting both will negotiate
each other and last the grievance will be solved.

21
 Union policy framework
The major trade unions are:
 INTUC (Indian National Trade Union Congress)
 AITUC (All India Trade Union Congress)
 CITU (Centre of Indian Traders Union)
The trade unions demand for their needs to the management and to the Government. And still if
there is the denial of what they demanded, then they will start strikes and all till their needs are
fulfilled.

Arbitration Process
Arbitration Process was done by each department heads and it will reported to the top management
at the Thiruvananthapuram if the matter is severe, and to Government and KSTC.

Workers participation management

Workers work as a team in order to achieve the organizational goals, increase productivity,
increase quality, decrease waste etc.

22
 MARKETING DEPARTMENT

Product profile
 Cotton yarn is the product and they will be in yarn cones.
 One cone’s weight will be 1.25Kgs.
 One bag will having of 40 cones and the weight of one bag will be 50Kgs.
 160 bags will be there in one load.

Fig No: 2.2. Market Dept. Structure

GENERAL MANAGER

JUNIOR MANAGER

OFFICE STAFF

KSTC
Kerala state textile corporation

Source: Own sketch

Marketing functions

The main function of the company is that to provide the best standard yarn to the
companies who needs, and so by that a better quality cloth can be produced. If better quality
yarn is produced then soon there will be a high demand and likewise there will be external
demand increased. And so the export also takes place. By this a huge revenue also will be got
for the Government. The other main aim of the marketing department is that if there is an
order then soon without any delay the product should be reached at hands of the customers.

Product distribution channels

K.S.T.C will be mainly taking care of the product, they will be calling for tender and who quotes

23
the best price to them the yarn will be sold. If there is no sales then the yarns will be taken to the go
downs which are situated at Bombay and form theirit will be sold.
Marketing strategy
According to the customer need and requirement the production takes place. And the quality of the
yarn also will be highly maintained. Mainly the change of the demand will be like the yarn’s count
so according to the change of the demand for the yarn, the market demanded yarn will be
produced.

Target achievement methods

The target is fixed only after the confirmation of the value of goods in market and if the demand
for the goods in the market is high or if any order is placed then according to the order, the
production process takes place.

Marketing product lines

The product lines of the cotton mill was marketed using the same channels and by the same
strategy. As per the orders and all reserved soon they will be producing the cotton yarn as fast as
they can and their by supplying to them. Customer beneficial & satisfaction identification methods

According to the customer need and requirement the production takes place. And the quality of the
yarn also will be highly maintained. Mainly the change of the demand will be like the yarn’s count
so according to the change of the demand for the yarn’s count, the market demanded yarn will be
produced

Identification of customer expectation

Each customer will be looking for their own standards of cotton yarn so each of them need a totally
different product. So according to the customer requirement and satisfaction they have to produce
the cotton yarn and that should meet the customer expectation. Customer fulfillment and service
As there will be orders from various customers then soon without making any delay they will be
producing the yarn and soon it will be delivered to them. As part from the company they will be
very keen about the standards of the yarn and all, as per the order they will be producing high
quality yarns and that will be delivered to them.

24
Customer order receive and follow up
The company will be getting different quotations and all from various companies and all from that
they will be choosing the best that will be beneficial to the company. On the other side a major part
of the orders and all will be taken by KSTC and they will be allotting to which customer they have
to give the yarns. When the orders are received soon the production for the order starts up and soon
it will be delivered to them.

Marketing tools & techniques

A marketing strategy is an overall marketing plan designed to meet the needs and requirements of
customers. The plan should be based on clear objectives. A number of techniques will then be
employed to make sure that the marketing plan is effectively delivered. Marketing techniques are
the tools used by the marketing department. The marketing department will set out to identify the
include public relations, trade and consumer promotions, point-of-sale materials, editorial,
publicity and sales literature marketing mix. The mix should consist of:

 The right product

 Sold at the right price
 In the right place

Using the most suitable promotional techniques.

Marketing techniques and tools are employed at three stages of marketing:

Market demand for their product

As cloth is one of the basic necessity for man so for producing cloth there is the need for the yarn
so every year the demand for the yarn is increasing.

Demand analysis
While the production is going on KSTC will be looking for the sales by giving add on newspapers
and all and likewise there will be some quotations and from all that they will be looking for which
product they gets more orders and by analyzing those things KSTC will be saying that what type of
yarn to be produced.

25
 Methods of overcoming competitors
The best method of overcoming the competitors are by supplying the best verity of yarn with high
quality. And selling that yarn by market rate price. By this the customers will be always be there.

Market segmentation
Market segmentation is mainly like
 Domestic
 State
 National
 International

Advertisement & sales promotion

As the population is increasing day by day, the need for the cloth also increases as it is one of the
basic essentials for man. And so for producing the cloth the yarn is required. There have been a
steady increase of the demand for the yarn. As part of sales there have not been any high
advertisement but providing the high quality yarn is one of the promotion that the company is
getting. Apart from all these there have been quotations for sales and all which will be published in
websites.

Product publicity
There is no big publicity for the product but product sales tender notice will be advertised in
internet and in newspapers as well.

Customer relationship management

Customer relationship management (CRM) is a broadly recognized, widely-implemented strategy
for managing and nurturing a company’s interactions with customers, clients and sales prospects. It
involves using technology to organize, automate, and synchronize business processes —principally
sales activities, but also those for marketing, customer service, and technical support.
The overall goals are to find,
 Attract, and win new clients,
 Nurture and retain those the company already has,
 Entice former clients back into the fold, and
 Reduce the costs of marketing and client service.

26
Customer relationship management denotes a company-wide business strategy embracing all
client-facing departments and even beyond. When an implementation is effective, people,
processes, and technology work in synergy to increase profitability, and reduce operational costs.

Customer Retain Management

An effective system of communication should provide opportunities for customer information. The
customer is the ultimate object whose satisfaction and goodwill are of the utmost importance for
the success of an organization. In carrying out the sales function of planning, the management
must communicate with customers. There were times when the customer was not the central figure.
But today the customer is the kingpin and sovereign of the market whose needs and satisfaction,
and the winning of whose goodwill, is of prime importance in these days of competitive setup.
These must be communicated promptly. It is the communication which establishes the contacts
with the customers. Customer communication helps to establish a relationship with customers who
buy and are the sources of products. The media used for advertisements can also be used
effectively to reach the customers.

Product selling process

There will be quotations and all which will be got from various companies and thereby the
company will be choosing the best quotation and there by the yarn will be delivered to them. Apart
from all these KSTC will be playing the major role as they will be taking initiative for selling the
yarns.

FINANCE DEPARTMENT
The word finance comes from the Latin word ―fins. Finance is the art and science of handling
money. It is the management of money. It is the management of laws of money. It is the
management of laws of money through as organization. Finance function is needed in all types of
organizations. Of all business functions, finance functions are the most important one. Finance
function is concerned with the evaluation of how funds are powered and used. The definitions of
finance may be grouped into following three categories.

First approach
In the words of F.W. Paish ―Finance may be defined as the provision of money at the time it is
wanted. This approach is concerned with procurement or raising of funds and hence this is a

27
 narrow approach.

Second approach
According to J.J.Hampton, ―the term finance can be defined as the management of the flows of
money through an organization, whether it will be a corporation, school, bank or govt. agency.
This a road approach.

Third approach
This is the modern approach and is the most acceptable one. According to this approach, finance
function is concerned with the procurement of funds and there effective utilization it the business.
According to the Solomon Ezra, the finance function covers not only the raising of funds but also
their effective utilization in the business.
This approach is related in the business. This approach is related in the business. This approach is
related with the financial decision making ie. The financial manager should consider the alternative
uses and sources f funds. In short, finance function is defined as provision of money at the time
when it needed.

GENERAL RECORDS OF THE COMPANY

 Daily wages record
 Material requisition book
 Pass book
 Stores record
 Cash book

FOLLOWING BOOKS ARE MAINTAINED IN ACCOUNTS DEPARTMENT

 Daily Journals
 Sales book
 Purchases book
 Ledger
 Trading Account
 Profit & Loss Account
 Balance sheet

28
 Types of assets and liability
ASSETS
 Free hold
 Lease hold
 Building
 Plant and machinery
 Electricals
 Furniture
 Computers
 Vehicles
 Canteen
 Liabrary

LIABILITIES
 KSTC Current account
 Inter unit due

INVESTMENTS
 Investment: 168 Nos. “B” Class shares of Rs 100/- Per share in Malabar spinning & weaving mills
employees Multipurpose Co-op. society Ltd.
 H.O Investment
 Investment by head office
 Grand from government of kerala

29
 CHAPTER-3

MC KINSEY 7-S FRAMEWORK&

PORTER’S 5 FORCE MODEL WITH SPECIAL REFERENCETO

ORGANIZATION UNDERSTUDY

30
 CHAPTER-3

MC KINSEY 7-S FRAMEWORK

3.1 INTRODUCTION

 The McKinsey 7S Model is a framework for organizational effectiveness that postulates that
there are seven internal factors of an organization that need to be aligned and reinforced in
order for it to be successful. The basic premise of the model is that there are seven internal
aspects of an organization that need to be aligned if it is to be successful.
The McKinsey 7S model involves seven interdependent factors which are categorized as either
"hard "or "soft" elements."Hard" elements are easier to define or identify and management can
directly influence them: These are strategy statements; organization charts and reporting lines;
and formal processes and IT systems.

"Soft" elements, on the other hand, can be more Deffand more influenced by culture. However,
these soft elements are as important as the hard elements if the organization is going to be
successful.

Hard Elements

 Strategy - Purpose of the business and the way the organization seeks to enhance its
competitive advantage.
 Structure - Division of activities; integration and coordination mechanisms.
 Systems - Formal procedures for measurement, reward and resource allocation.

Soft Elements

 Shared Values
 Skills - The organization's core competencies and distinctive capabilities.
 Staff - Organization's human resources, demographic, educational and attitudinal
characteristics.
 Style – Typical behaviour patterns of key groups, such as managers, and other professionals.

31
Usage

 Improve the performance of a company

 Examine the likely effects of future changes within a company
 Align departments and processes during a merger or acquisition
 Determine how best to implement a proposed strategy

MCKINSEY 7S MODEL:

Fig no:3.1:Mckinsey 7s Model

Source:www.wikipedia.com

Strategy is a plan developed by a firm to achieve sustained competitive advantage and

successfully compete in the market. In general, a sound strategy is the one that’s clearly
articulated, is long-term, helps to achieve competitive advantage and is reinforced by strong
vision, mission and values. But it’s hard to tell if such strategy is well-aligned with other
elements when analyzed alone. So the key in 7s model is not to look at your company to find
the great strategy, structure, systems and etc. but to look if its aligned with other elements.
For example, short-term strategy is usually a poor choice for a company but if it’s aligned
with other 6 elements, then it may provide strong results.

32
 Structure represents the way business divisions and units are organized and includes the
information of who is accountable to whom. In other words, structure is the organizational
chart of the firm. It is also one of the most visible and easy to change elements of the
framework.

Systems are the processes and procedures of the company, which reveal business‟ daily
activities and how decisions are made. Systems are the area of the firm that determines how
business is done and it should be the main focus for managers during organizational change.

Skill’s are the abilities that firm’s employees perform very well. They also include
capabilities and competences. During organizational change, the question often arises of what
skills the company will really need to reinforce its new strategy or new structure.

Staff element is concerned with what type and how many employees an organization will
need and how they will be recruited, trained, motivated and rewarded.

Style represents the way the company is managed by top-level managers, how they interact,
what actions do they take and their symbolic value. In other words, it is the management style
of company’s leaders.

Shared Values are at the core of McKinsey 7s model. They are the norms and standards that
guide employee behavior and company actions and thus, are the foundation of every
organization.

3.2 MC KINSEY’S 7S FRAME WORK WITH REFERANCE TO COMPANY

1. STRATEGY
The various strategies of Malabar Spinning Mills are:
a. Consumer satisfaction.
b. Employee growth and satisfied work force.
c. Optimum inventory control.

33
 2. STRUCTURE

The structure of Malabar Spinning Mills is:

a. Malabar Spinning Mills follows line organization structure; managing director is the top level and
functional manager followed by him.
b. In Malabar Spinning Mills there are 5 departments namely, production department, finance
department, human resource department, marketing department, quality control department
c. Chairman and managing director and representatives of shareholders are taken the important decisions
of the group.
d. Both implicit and explicit communication follows the company.

3. SKILLS
a. Expert technical.
b. Team coordination.
c. Trained and confident employee through training.

4. SYSTEMS
a. Quality assurance policy.
b. Flexibility working and work life balance.
c. Freedom of information.
d. Gender quality scheme.

5. SHARED VALUES
a. Quality.
b. Equal opportunities.
c. Integrity.
d. Unity.
6. STYLE.
a. Leadership approach is very friendly.
b. In Malabar Spinning Mills there are no trade unions because of their employee employer
relationship.
7. STAFFS
a. Competency level of employees is very high.
b. The staff who are working in Malabar Spinning Mills are educated
c. Professional knowledge.

34
 3.3 MICHAEL PORTER’S FIVE FORCE ANALYSIS

Fig no:3.2: Porter’s Five force model

THREAT OF NEW
ENTRANTS

BARGAINING INDUSTRY RIVALRY BARGAININ

POWER OF G POWER
SUPPLIERS OF BUYERS

THREAT OF
SUBSTITUTES

Source: Own sketch

35
Porter’s Five Force Analysis is a framework for industry analysis and business strategy
development formed by Michael E. Porter of Harvard Business School in 1979. It draws upon
Industrial Organization (IO) economics to drive five forces that determine the competitive
industry and therefore attractiveness of market. Attractive in this context refers to the overall
industry profitability. An “unattractive” industry is one in which the combination of these
five forces acts to drive down overall profitability.

Michael Porter provided a framework influenced by five forces. The strategic business
manager seeking to develop an edge over rival firm can use this model to better understand
the industry context in which the firm operates.

36
 CHAPTER-4

SWOT ANALYSIS

37
 4.1 SWOT ANALYSIS INTODUCTION

Fig no: 4.1: SWOT Analysis

STRENGTHS WEAKNESSES

SWOT
ANALYSIS

OPPORTUNITIES THREATS

Source: own sketch

A scan of the internal and external environment was an important part of the strategic
planning process. Environment factors, internal to industry are classified as strengths or
weakness and those external to the industry are classified as opportunities or threats. Such an
analysis of the strategic environment is referred as SWOT analysis. SWOT analysis is an
important aid for the management when it comes from making critical decision.
Opportunities represent the positive aspects, where as the weakness and threats represent the
negative aspects that the company should try to overcome.

After a keen observation over the organization and the various department of Malabar
Spinning Mills, the following strengths, weakness opportunities &threats are known. The
basic objective of SWOT analysis is to provide a frame work to reflect on the firm’s ability to
overcome barriers & avail of the opportunities emerging in the environment. Indeed the
dimension of the internal capabilities have reliance is so far as they relate to the
environmental conditions. The followings are the some of the strengths, weakness,
opportunities, & threats of Malabar Spinning and Weaving Mills.

 STRENGTH: Characteristics of the business or project that give it an advantage over

others.
 WEAKNESS: Characteristics that place the business or project at a disadvantage
relative to others.

38
  OPPORTUNITY: Elements that the project could exploit to it’s advantage.
 THREAT: Elements in the environment that could cause trouble for the business or
project.

4.2 SWOT ANALYSIS WITH REFERENCE TOCOMPANY

STRENGTHS

 Fully automated equipments.

 Use of technology.
 Development of infrastructure at proper time and recruitment of eligible employees
contributed a lot to their growth. Today they have adequate infrastructure and
sufficient manpower which gives them a positive energy for future growth.
 Availability of labor is very cheap.
 Availability of raw materials

WEAKNESSES

 The textile industry is unable to pass on majority of price hike to end consumer due to
high competitive pressure which impact margin.
 Highly dependent on cotton.
 In order to operate the technologies, workers need high level of proficiency.
 The industry required high capital intensive technologies for manufacturing.
 Energy consumption of machineries are very high.
 Lack of optimum use of resources.
OPPORTUNITIES

 Government support and subsidies.

 With ongoing development of infrastructure
 New market or global market,

THREATS

 Biggest threat for textile companies is increase in price of cotton, which accounts for
majority of total raw material costs.
 Highly competitive market.
 Labor union problems.

39
 CHAPTER-5

FINANCIAL ANALYSIS

40
 5.1 INTRODUCTION TO FINANCIAL ANALYSIS

Financial analysis is the evaluation of a business in order to determine its profitability, liabilities,
strengths and future earnings potential. A wide variety of techniques may be utilized to assess an
organization’s financial viability including the most common methodologies of horizontal
analysis, vertical analysis and ratio analysis. Most analytical methods involve the company’s
financial statements, internal or external audits, and investigations.

Financial analysis is a critical aspect of all commercial activity as it provides actionable insights
into the organization’s health and future potential. Not only does this information provide
investors and lenders with critical data that may affect the price of stocks or interest rates, these
reports also allow company managers to gauge their performance with regard to expectations or
industry growth. From a management point of view, financial analyses are critical to the success
of the company because they highlight weaknesses and strengths that directly affect
competitiveness.

It is performed by professionals who prepare reports using ratios that make use of information
taken from financial statements and other reports. These reports are usually presented to top
management as one of their bases in making business decisions. Financial analysis may
determine if a business will:
 Continue or discontinue its main operation or part of its business;

 Make or purchase certain materials in the manufacture of its product;

 Acquire or rent/lease certain machineries and equipment in the production of its goods;

 Issue stocks or negotiate for a bank loan to increase its working capital;
 Make decisions regarding investing or lending capital;

 Make other decisions that allow management to make an informed selection on various
alternatives in the conduct of its business

41
 5.2 FINANCIAL STATEMENT AND ANALYSIS
Balance sheet as on 31st march2018
PARTICULARS NOTE As on As on 31st
NO. 31st march 2017
march
2018
I. Equity and liabilities
1. Share holders fund
a) Share capital
b) Reserves and surplus 1 (9060,61 (2,28,87,709)
c) Money received ,521)
against share 2 Nil
warrants Nil
2. Non-current
liabilities
a) Non-current 3 - 31,99,463
liabilities Nil Nil
b) Deferred tax
liabilities 4 4682,23, 4682,23,551
c) Other long-term 5 551 90,33,773
liabilities 84,84,06
d) Long-term provision 7
3. Current liabilities
a) Short term 6 54,70,323
borrowings -
b) Trade payables 7 570,16,8 465,32,701
48
c) Other current 8 5195,76, 4323,18,517
liabilities 047
d) Short-term provision 9 30,36,335
38,43,66
0
TOTAL 1510,82, 1797,57,921

42
 662
II. Assets
1. Non-current assets
a) Fixed assets
i. Tangible assets 10.A 979,62,7 1359,10,660
ii. Intangible assets 11
iii. Capital work-in- 10.B -
progress
iv. Intangible assets 11 - -
under development
Nil

Nil

Nil

b) Non-current - 10,50,27,101
investment 12 16,800 16,800
c) Deferred tax assets Nil Nil
(net)
d) Long term loan and 13 46,31,25 46,47,250
advances 0
2. Current assets
a) Inventories 14 296,30,2 201,72,131
09
b) Trade receivables 15 48,64,05 201,72,131
4
c) Cash and cash 16 39,90,31 94,03,010
equivalents 1
d) Short term loan and 17 99,87,31 95,67,824
advances 6
TOTAL 1510,82, 1797,57,921
652

43
5.2 FINANCIAL RATIO ANALYSIS

A financial ratio or accounting ratio is a relative magnitude of two selected numerical values taken
from an enterprise's financial statements. Often used in accounting, there are many
standard ratios used to try to evaluate the overall financial condition of a corporation or other
organization. It is a quantitative method of gaining insight into a company's liquidity, operational
efficiency, and profitability by comparing information contained in its financial statements. Ratio
analysis is a corner stone of fundamental analysis. Outside analysts use several types of ratios to
assess companies, while corporate insiders rely on them less because of their access to more detailed
operational data about a company. Ratio analysis can be used to establish a trend line for one
company's results over a large number of financial reporting periods. This can highlight company
changes that would not be evident if looking at a given ratio that represents just one point in time.
Comparing a company to its peers or its industry averages is another useful application for ratio
analysis. Calculating one ratio for competitors in a given industry and comparing across the set of
companies can reveal both positive and negative information. Since companies in the same industry
typically have similar capital structures and investment in fixed assets, their ratios should be
substantially the same. Different ratio results could mean that one firm has a potential issue and is
underperforming the competition, but they could also mean that a certain company is much better at
generating profits than its peers. Many analysts use ratios to review sectors, looking for the most and
least valuable companies in the group.

44
 NET PROFIT RATIO

Net profit ratio (NP ratio) is a popular profitability ratio that shows relationship between net profit
after tax and net sales. it establishes a relationship between net profit earned and net revenue
generated from operations (net sales). Net profit ratio is a profitability ratio which is expressed as a
percentage hence it is multiplied by 100.

NET PROFIT RATIO=NET PROFIT/NET SALES*100

YEAR NET NET SALES NET
PROFIT/LOSS PROFIT/LOSS
RATIO
2018 -1180,04778 1218,73,734 -96.82
2017 -1303,00362 408,26,127 -319.15

NET PROFIT/LOSS RATIO

0
2018 2017
-50

-100
-96.82

-150

-200 NET PROFIT/LOSS RATIO

-250

-300 -319.15

-350

INTERPRETATION

From the above information it’s clear that the company facing a huge loss.

45
CURRENT RATIO

Current ratio referred as a working capital ratio or banker’s ratio. Current ratio expresses the
relationship of a current asset to current liabilities.

CURRENT RATIO=CURRENT ASSET/CURRENT LIABILITY

CURRENT CURRENT CURRENT

YEAR
ASSET LIABLITY RATIO
2018 48,471,890 580,436,555 0.0835
2017 39,183,209 487,357,876 0.08039

CURRENT RATIO
0.084
0.0835
0.083
0.0825
0.082
0.0815
0.081 CURRENT RATIO
0.0805
0.08
0.0795
0.079
0.0785
2018 2017

INTERPRETATION

From the above information we can make a interpretation that Current Liability is more than
current asset. The Current ratio of the company is not ideal.

46
FIXED ASSET TURNOVER RATIO

The fixed asset turnover ratio is an efficiency ratio that measures a companies return on their investment
in property, plant, and equipment by comparing net sales with fixed assets.
FIXED ASSET TURNOVER RATIO =NET SALES/FIXED ASSET
FIXED ASSET
YEAR NET SALES FIXED ASSETS TURNOVER
RATIO
1218,73,734 979,62,711 1.244
2018
408,26,127 1359,10,660 0.30038
2017

FIXED TURN OVER RATIO

1.4
1.244
1.2

0.8

FIXED TURN OVER RATIO

0.6

0.4 0.30038

0.2

0
2018 2017

INTERPRETATION

In 2017 the fixed turn over ratio is very less. But the company is comparatively improving on
fixed turn over ratio in 2018.

47
 CHAPTER-6
LEARNING EXPERIENCE

48
6.1 LEARNINGEXPERIENCE

The internship at Malabar Spinning & Weaving Mills was an opportunity to grow and
learn before fully entering the working world. It helped a lot to test out the skills that I
developed in college and see how they work in the real world. The most important
thing that I have gained from this internship is newfound knowledge. It gave me a feel
for work without being thrown into the deep end straightaway.
The Malabar Spinning & Weaving Mills forms a part in its growth in textile industry
I got an idea of what my biggest strengths are, as well as areas of improvement I
should work on. It taught me to make my own decisions and do things on my own and
to build relationships with people around the office. Being able to work independently
with little guidance is very important in the working world. it was a great opportunity
to gain experience, make friendships and learn. I realized that a job does not always
have a social atmosphere (very different from campus life). Even though I am
surrounded with people that I spend all my time with, the workplace is not necessarily
the time to spill my guts over a problem I have or holler with joy over something
exciting. It is easy to be told things like that, but much better to experience it
firsthand.

49
 6.2 CONCLUSION

From the study of this company I understood the functions and features of the company. This
company is improving their quality, goodwill, market value and they are giving job opportunity
so many people. They are the Strength of the company’s growth. In fact we can see that the
company has modernized its machines and all and it’s the biggest cotton mill industry in whole
Kerala with all most modern facilities.

The institutional training at Malabar Spinning & Weaving Mills, Calicut, helped to have a good
knowledge about how a company operates and the consequent focuses relating to the business
activities. In the short span of training the company management provides me a good explosure
to the working and management work out in the detail run. It enhanced about plant production
process in details, which paved way for rich experience in plant supervision. It also provide with
information regards the export financial and human resources activities and documentation in the
organization, which was new experience for me.

The organization growth decides their tireless effort in bringing it up. The expansion and
establishment of the organizations in various places and in various forms denotes their financial
efficiency and capabilities.
 Company is going at a loss and we can see that the profit that the company is earning is not even
enough to pay the interest of loans and all that they have taken.
 Malabar spinning & weaving mills is the largest and the biggest cotton yarn producing mill in
whole Kerala
 The company mostly concerned about the people and it’s not concentrating upon the production.
 There are power failures or power cuts, there is no other options for power generation or there is
no generator so because this production process will be interrupted then and there.
 There is union and issues with union will create delay in the production process

50
BIBLIOGRAPHY

For the completion of this project, following books and websites have been referred and hel[
from other sources has been taken. Those are mentioned below :

BOOKS :

 “Organizational Behaviour” : Steepen. P. Robbins

Published by prentice Hall of India Pvt. Ltd 9th edition2002.

 “Management Principles” : Peter F Ducker

Published by prentice Hall of India Pvt. Ltd 5th edition2001.

 “Marketing Management” : Philip Kotler

Published by prentice Hall of India Pvt. Ltd 5th edition 1999.

 “Research Methodology” : Kothari C R

Published by New Age International Pvt. Ltd 2nd edition 2004.

WEBSITES :

 www.economictimes.com
 www.wikipedia.com

51