COMPANY PROFILE

History of the Indian Textile Indusry

Textile have historically formed an important component of India. There is a archaeological evidence from Mohenjo – Daro, which establishes that the complex technology of mordant dyeing was being used in the subcontinent from atleast the second millennium India.

India developed its textile, industry at an early stage and along with it, its textile manufacturing technology, price to colonization, India’s manually operated textile machine where the best in the world and served in a model for production in the first textile machines in newly industrialized Britain and Germany. A mild climate meant that the lower strata of society could survive relatively cheaply. The huge trade surplus, the country enjoyed and wealth in natural resources enabled the nobility and the middle classes to live in luxury and comfort. This inhibited revolutionary change and cultured an atmosphere of complacency parasitism and conservation, which is still felt today.

The textile industry covers a wide gamut of activities ranging from production of raw material like cotton, jute, silk and wool for providing high value added products such as fabrics and garments to consumers. The industry uses a wide variety of fibers ranging form natural fibers like cotton, jute, silk and wool to manmade fibres like polyster, viscose, acrylic hand multiple blends of such fibers and filament yarn.

The industry plays a significant role in – Indian economy by providing direct employment to an estimated 35 million in people, by contributing 4% of GDP and Accounting for 20% of total export earning. The production process in textiles encompasses many activities like ginning, reeling, spinning, weaving, dyeing, processing, finishing and garment manufacturing. Because of the great diversity of activities involved, the grades of retiles needed by the industry vary significantly. Thus from totally unskilled to highly skilled persons, cutting across caste, creed, religion, gender and experience, i.e. a greatly diverse work force fins employment in industry.

Growth of Textile Mills in India

In the post independence period, the number of cotton/man made textile mills increased from 378 in 1951 to 1824 in March 1999. A newly fivefold increase with in a period of around 50 years. It can be shown as below.

Gro Spin

Year wth Rate Total Mills ning Mills

1995 846 1142

1996 874 1175

1997 909 1416

1998 1148 1569

1999 1294 1719

2000 1438 1782

2001 1504 1824

The Indian textile industry plays a crucial role with over 1460 organised units, 32 million spindles, 1.7 million power looms, 4 million handlooms, large number of small medium and large processing houses and approximately 1 lakh garments and hosiery units. This is a single largest industry in the country with an annual growth of 15 percent employing 20 million people contributing 32 percent Indians foreign exchange earnings through merchandise exports. This industry constitutes 20 percent of the industrial production and 7.5 percent of GDP. The textile industry has certain inherent strength and ready access to domestic cotton in abundant measure and generally at prices which are extremely competitive. It has cheap and skilled workers. It has great tradition of exquisite designs which command admiration internationally. All the basic requirements are thus available for exchanging its performance.

Cotton Textile Industry in Kerala

In Kerala, there are about 24 cotton textile industries (Excluding NTC). Textile mill of Kerala now operates in hazardous. Most of the privately owned mill has closed down, as a result, a large number of workers lost their job. The raw material such as cotton PSF, VSF for manufacturing clothes is not widely cultivated here. It is the either obtained from other states especially from Maharashtra and Tamilnadu or imported from outside India.

Climate condition frequently changes, sot eh suitable arrangements have to be made in the factory to maintain the desired climate condition for the production of yarn. Some of the existing private mills are facing the problem taking over its management by the government. cotton textile mill were taken over by “Textile Corporation” of Kerala and NTC, Those mills taken over also make huge losses with the last 5 years, only two hundred spinning and weaving mills were started in Tamilnadu.

COMPANY PROFILE

Name of the firm : KERALA LAKSHMI MILLS

PULLAZHI, THRISSUR

(A unit of national Textile corporation

AP.K.K. & M Ltd Banglore)

Business of the firm : Manufacturing Yarns

Board of directors : K. Ramachandran Pillai

(Chairman and Managing Director)

H.P. Singh

(Director Commercial)

Koran john

(Finance Director)

B.S. Nanjunda Swami

(Company Secretary)

Company Manager : D.K.Sharma

(General Manager)

Supriya Bhai

(Personal Manager)

Binoy P.Andrews

(Spinning Manager)

P.Shanmugham

(Acconts Manager)

History of the Company

Kerala Lakshmi Mill is a Govt. Company under public sector. It is at Pullazhi in Thrissur District.

Present position of the company

Spindle Capacity

Licensed 41570

Installed 41328

Utilisation Percentage 88%

Men employed day 482

Number of working day 351

The mill has on rolls a total of 475 workers and 27 officers and staff as per details shawn below.

Present workers

Permanent 475

Total

Officers and staff 8

Supervisors 6

Clerical & Others 13

Grand Total 27

502

Employee Benefit

1. Employees State insurance : 1.75% of salary is paid by employees and 4.75 % is paid by employer.

2. Provident fund : 10% to employer and employee3. Kerala labour welfare fund board : Children Scholarship

The mill was stated during 1962 – 63 by late Karumuthu Thiagaraja Chettiar with OMS ring frames manufactured Ram Krishna Industries (RKI) in collaboration with OMC company of Japan. The mill was taken over in November 1972 along with other three units of Meenakshi Group in Kerala. The unit was nationalized on 01 – 04 – 1974. The spindles was increased from 30960 to 41328.

The National Textile Corporation Bangalore is the head office of Kerala Lakshmi Mills. The NTC Ltd Bangalore is a subsidiary company of NTC Ltd. Delhi Head Office will purchase raw materials and sell the finished goods on behalf of Kerala Lakshmi Mills.

The company produces 100% cotton yarn. Kerala Lakshmi Mills nationalized with effect from the silk textile undertakings (Nationalisation) Act. 1974 along with other 103 mills all over India. At present there are 133 mills under NTC in Kerala there are 6 mills.

The mill is now equipped with 41328 spindles (licensed capacity of 41570 spindles) to manufacture cotton/ blend yarn with balancing machinery required for this. The mill is manufacturing cotton yarn of 60’s, 65’s and polyster cotton blend yarn of 60 count. The products are sold at Bombay and Ahamadabad market. The mill is working at 24 hours a day and 7 days working in a week.

The mill, share holding of Rs.114.46 lakh is contributed by subsidiary corporation to NTC by way of Equity Share Capital.

The chief executive of the mill is the general manager who with his team officers looks after the management of the mill working under the guidelines and supervision of the head officers.

Work of the Unit

The company works on all days in week. The company works for 24 hours, 3 shifts and general shift. The time of three shifts and general shifts will be as follows.

General shift 7 AM to 3.30 PM

1st shift 7 AM to 3 PM2nd shift 3 PM to 11 PM

3rd shift 11 PM to 7 AM

The total production is calculated based on three shifts. The total utilisation is computed by multiplying total capacity (spindles), the number of working days and the shifts.

Utilization = 41328 x 3 shifts x No. Of working days

123984 x No. Of working days in month

Mission and Vision

Every firm has its own mission. The companies is to provide employment opportunities to the people and thus to reduce the unemployment problem which is very crucial in our country. Till the present they are successful in it.

The Kerala Lakshmi Mill ultimate vision or aim is to produce yarn at lower cost of production and to make it available to the people at a lower cost ensuring good quality.

ORGANISATION STRUCTURE

The National Textile Corporation is a holding company. Its head office is situated at New Delhi. All over India N.T.C has 9 subsidiary company.

The subsidiary head office (AP.K.K. & M) is situated at Bangalore.There are three major divisions in the company, via, production department, accounts department and personal department, under production department, there different sections like production, maintenance, quality control and finished products specializes technicians look after each section. The spinning manager is also functioning as factory manager and is in large of production departments. Accounts department headed by accounts managr is controlling, the financial aspects, costing and sales.

Personnel manager looks after all personnel matters including labour problems, industrial relations, time office, wages, administration, recruitment, training, promotion, operation, and enforcement of all labour legislations like ESI (Employee State Insurance) Act, Provident fund Act, payment of wages Act, Bonus Act and other relevant Act.

Various departments of Kerala Lakshmi Mills

There are 4 major divisions functioning in this mill. They are as follows;

Production department Personal department Financing department Marketing department Store department

Production department

Production manager is the head of this department. He is assisted by duty spinning manager and other technical staff. The workers of this department are experienced hands. The management provides training to increased their skill and efficiency. Now modernization is carried in their plant. This helps to increase the production capacity of the plant.

Raw material:

I. CottonII. Synthetic polyester

Cotton

Raw material are purchased by the head office at Bangalore. The head office will arrange the purchase of cotton from the cotton corporation India. The mill is mainly depending upon the cotton supply from Tamilnadu, Andhara Pradesh, and Punjab.

Polyester

Polyester is a synthetic product manufactured out of petroleum by products. There is various manufactures in India for supplying polyester fiber. The requirements of fiber will be informed to the head office every month and a purchase will be arranged by the head office. Now the mill purchase from Indo Rama, Syntrti ltd, Nagpur, textile mills are mining cotton with polyester at different ratios such as 67:33, 70:30 for making the yarn.

Product range:

The Kerala Lakshmi mill at present producing 60pc, 50pc, 2/60pc, 50pc deluxe.

I. 60pc implies that 67% polyester and 33% cottonII. 50pc implies that 70% polyester and 30% cotton

III. 2/60pc implies doubling of 60pcIV. 50pc deluxe implies that 70% polyester and 30% cotton

Manufacturing process

The Kerala Lakshmi mills, a unit of National Textile Corporation (Andhra Pradesh, Karnataka and Kerala mahi) ltd, is a spinning mill. The company is engaged only in the production of yarn product. Cotton is the raw material for the production of yarn. The mill has no authority to purchase required raw material for the production at its power as it is in the control of NTC ltd, Bangalore its head office. The required raw material is supplied by NTC and those through its agents or by its depots keepers also makes the sales.cotton purchase may be in either Borah or bale form. In case of cotton one bale contains 170kg and in case of polyester one bale contains 400kg.

Brief note of the manufacturing process

1. Mixing

Cotton is converted as web and this web is mixed with polyester for pc/yarn. Cottons pc/pv of different varieties is hand opened and mixed in different proportion depending on the requirement and quality of cotton.

2. Blow room

The cotton is cleaned of impurities and formed into a thin sheet of about 40” width and rolled into a lap in length of about 40 meters.

3. Carding

The thin sheet from blow room is further cleaned and drawn into a rope form called sliver.

4. Drawing

The material sliver is passed through the machines to make the material in more even.

5. Simplex

The sliver (in rope form) is thinned and made into thin strand (called rove) and wound on bobbins. The process is done by the process drafting.

6. Ring Spinning

The rove is further and the material is twisted and yarn is produced and wound on bobbins.

7. Corn winding

The yarn is small packages is made into bigger packages called cones; normally a cone contains 1.0kg to 1.5kg of yarn depending upon the market requirement.during the process the yarn is somewhat cleaned by passing the material through a pair of blades.

Personal department

A separate department is setup in large sized business organization. The personal manager is the head of this department. She gives advices to top level management in relation personal policies and programs. She act as a specialist and provides services to other departments also. The personal department includes all the major activity in the working life of a worker from the time of his entry to an organization until he leaves the organization. The time office is a new section that come under personal department.

The main functions of this department are as follows:-

I. ESI benefitsII. Provident fund

III. Leave travel concessionIV. Conveyance allowences

Time Office

Time office is the important section that come under personal department. The major functions of time office are as follows:-

Keeping attendance register Providing provident fund, gratuity fund, ESI facilities. Providing salary, wages, etc.

Finance department

Finance is the life blood of the business. It is necessaryfor all levels of business organization. In this organization financial department functions is under the control of accounts manager.

Different clerks like accounting, costing, sales etc are assisted him. The mill has no particular share capital invested by share holders. It raised its fund from head office investment and also from loans. The mill acquired both secured and unsecured loans from SBT, IFCI, IDBI, and IRBI.

Marketing department

The main purpose of the marketing department is to analyze the sales pattern of the mill. Bombay yarn market local power looms are the market for yarns. To fix the market on trend is not fined or fluctuates down or up. There has been bargaining power. The quality rates is fixed at YPC meeting. The head office will approve the rates and send this to the mill.

Stores department

Stores department works under store keeper all the departments require certain items for their smooth functioning. Some regular items is always kept minimum in the store. This item will be issued by producing a material to the concerned. But some items are not owned by the stores department. For acquiring such item the production or concerned department should give indent form to the store keeper. There is also a purchasing committe were general manager, spinning manager, deputy personal manager, and stock keepers are the members. They enjoys the right to fix a quotation rate choosing the party for purchasing.

INDUSTRY PROFILE

Cotton Textile Industry in World

Cotton is one of the most important and widely produced agricultural and industrial crops in the world. Cotton textile industry which uses fibers and yarns for the manufacture of fabrics is known as textile industry. Until the current electronic recession, the world cotton industry had been experiencing robust demand growth and rising yields, marketing is one of the best performing commodity industries in the world during the first part of this decade.

Cotton played an important role in industrial development starting in the 17 th century and continues to play an important role today as a major source of revenue. Textile mill produce an incredible variety of fabrics. They turn out huge roles of soft cotton, warm wool, strong nylon and other fabrics.

Cotton textile industry is spread all over the world. Cloths are our basic needs. The textile industry consists of handlooms, power looms, and modern mill setup. The global market has made demand on Indian textiles in the world market.

Cotton is grown in more than 80 countries on about 2% of the world’s arable land, marketing it one of the most significant in terms of land use after food grains and soybeans. Cotton is also a heavily traded agricultural commodity, with over 100 countries involved in export or import of cotton.

The world textile corporation industry has experienced dramatic changes over the last six decades as production nearly quadrupled rising from 7 million tons in 1950-51 to 27 million tons four years ago, before failing to 23 million in 2008-2009. The average annual rate of growth in the world production over the last six decades has been about 2.5% per year.

World demand for cotton has increased at an impressive pace since the 1950, rising 7 million tons in 1950 to 26 million tons in 2007, for an average annual rate growth of more than 2%. The first half of this decade saw extra ordinary rates of growth in cotton use. During the period from 1970-71 through 1988-89, world cotton use rose at an annual rate of 1.5%. But between 1998-99 and 2006-07 cotton use rose by 4.5% per year.

Cotton textile industry in India

The textile industry in India occupies a unique position in our economy contributing to nearly a third of the countries export earnings. Cotton textile industry is one of the oldest and largest industries of India which has made rapid stress during the century of its existence. The Indian textile industry enjoys a major strength in the global market. It is largely self-sufficient a regards to raw materials with Indians cotton crop output being the third larger in the world. Today a cotton textiles export in India is counted among the most important sectors.

The industry spread allow spinning of different counts of yarn. India has achieved self sufficiency in synthetic raw materials as well as main stream products like polyester, staple fibers polyester filament yarns, acrylic fibers and viscose fibers though certain specially fibers are still improved. At present there are nearly 3000 mills in our country. Though the industry is spread across all the state two third of the textile mills are concentrated in Gujarat, Maharashtra, and Tamilnadu. Cotton textile industry is also popular in Kerala also.

Cotton textile industry in Kerala

In Kerala there are above 30 cotton textile industries textile mills of Kerala now operation in hazardous situation most of the privately owned mills are closed down and as a result a large number of workers, lost their job. Some of the mille were taken over by the textile corporation of Kerala national textile corporation. These taken over mills also made huge losses. Within the last 5 years only 2 cotton textile mills were started in Kerala, where as 200 spinning and weaving mills were started in Tamilnadu. Kerala Lakshmi mill has taken over by the National Textile Corporation. Now the mill works under NTC.