ORGANIZATIONAL STUDY REPORT

at

KAMCO LTD, Athani

Submitted by

RAHEES K

(Reg.No 1050)

In partial fulfillment of requirement for the award of

POST GRADUATE DIPLOMA IN MANAGEMENT

to

BHAVAN’S ROYAL INSTITUTE OF MANAGEMENT

(Approved by All India Council for Technical Education, New Delhi)

THIRUVANKULAM

KOCHI-682305

2009-2011

1
 DECLARATION

I RAHEES K.hereby declare that this organizational study report at KAMCO LTD has

been prepared by me under the guidance of Prof. M.P.kesavan Nair, Associate Dean, Bhavan’s

Royal Institute of Management, Tiruvamkulam, Kochi. I also declare that this training report is

my original work and that it has not previously formed the basis for award of any degree or

diploma.

Date: 30/07/10 RAHEES. K

Place: Cochin

2
 ACKNOWLEDGEMENT

I wish to express my indebtedness and gratitude to Mr. Jolly Thomas, HR Manager for

giving me support to do this internship training in kamco Ltd.

I would also like to reserve a warm and special note of thanks to my internal guide

Prof.M.P.Kesavan. Nair (Associate dean) whose wholehearted support and guidance helped me

to complete this organizational study successfully.

My special acknowledgement and gratitude to Kamco Ltd. for granting me the

permission to carry on my internship training in their reputed organization.

Last but not the least; my gratitude is to the almighty for showering me with abundant

grace through the entire duration of this training. I believe that the light that God has passed on

to me shall be kept alight in all days to come.

Date: 30/07/10 RAHEES . K

Place: Cochin

TABLE OF CONTENT

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SL.NO Chapter Title Page no

4
1 1 Introduction 1
2 1.1 Need And Significance Of Study 2
3 1.2 Objectives of the study 2
4 1.3 Scope of the study 3
5 1.4 Methodology followed 3
6 2 Industry Profile 4
7 2.1 World Scenario 5
8 2.2 Indian Scenario 7
9 3 Company Profile 10
10 3.1 Introduction 10
11 3.2 Objective of the company 11
12 3.3 Milestones of the Company 11
13 3.4 Business Environment of kamco 12
14 3.5 Present Status Of Kamco 12
15 3.6 Future of kamco 13
16 3.7 Corporate Governance 13
17 3.8 Pollution Controlling System Of Kamco 13
18 3.9 ISO 9001-2000 Certification 13
19 3.10 Industrial Relation 14
20 3.11 Quality of product 14
21 3.12 Quality policy of kamco 14
22 3.13 Organization Structure Of Kamco 15
23 4 Detailed Study Of Department 18
24 4.1 Production Department 18
25 4.1.1 Manufacturing 21

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26 4.1.2 Other Products 21
27 4.2 Marketing Department 30
28 4.2.1 Competitors 25
29 4.2.2 International market 26
30 4.2.3 Dealers 26
31 4.2.4 Sales promotion 27
32 4.3 Human Resource Management 28
33 4.3.1 Workman classification 29
34 4.3.2 Recruitment and Selection 30
35 4.3.3 Training and development 31
36 4.3.4 HRD Activity 32
37 4.3.5 Promotion 33
38 4.3.6 Wage and Performance Appraisal 34
39 4.3.7 Kamco’s Welfare Programmes 36
40 4.3.8 Wages for workman 36
41 4.3.9 Attendance 36
42 4.3.10 Incentive 36
43 4.4 Finance Department 44
44 4.4.1 Function of Finance Department 39
45 4.4.2 Bankers of kamco 43
46 4.5 Purchase and Stores Department 50
47 4.5.1 Duties and Responsibilities 45
48 4.5.2 Purchasing Process at Kamco 46

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 49 5 Swot Analysis 49
50 5.1 Observation 51
51 5.2 Conclusion 51

LIST OF FIGURES

FIG. NO TITLE PAGE. NO

4.1 Production Department 18

4.2 Marketing Department 24
4.3 Human Resource Department 28
4.4 Finance Department 37
4.5 Purchase And Store Department 44

CHAPTER 1

INTRODUCTION

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 Agriculture is a way of life, a tradition that for centuries has shaped the thought, the

outlook, the culture and economic life of India. Life on earth is supported by the inches of

earths crust, fulfilling the basic needs of food, shelter and clothing. Over 100 million Indian

farmers and farm workers have been the backbone of Indians agriculture. In the beginning,

ancient methods were adopted by farmers. All crops are produced and prepared by human

muscles. The entire process from sowing the seed till harvesting was a time consuming

process which required a lot of labour work. The cost of production was high and the

benefits were not promising.

Indian agriculture has contributed significantly in achieving self sufficiency to

avoid food shortages in our country. Agriculture is therefore and will continue to be the

central to the development of the country. Rapid growth of agriculture is essential not only

to achieve self reliance at national level but also for house hold food security.

The existing agricultural scenario presented a dismal picture of traditional farming

methods, low yielding seeds primitive implements, unsuited to large scale cultivation. The

only solution for this is mechanized farming which could turn around the virtual fortune of

India. In order to achieve this objective, indigenous agro machinery units were to be set up,

without resorting to imports, which undoubtedly posed a heavy burden on the nation’s

exchequer and were hardly suited to the local conditions. Thus, out of the nations need,

KAMCO was born in the year 1973, as a fully owned undertaking of Government of

Kerala. In partial fulfillment of the PGDM programme, the trainee had undergone 30 days

internship training at KAMCO.

1.1 Need and Significance of Study

8
 Management principles can be taught in class rooms but managerial skills can be

developed in an individual only. When he is trained so. As job are rare and lots of

people are equally qualified what makes the student different is his familiarity with

corporate practices, processes and this study is also attempt to make the trainee

familiar with a public sector manufacturing company.

1.2 . Objectives of the Study

Primary Objective

1. To study the overall functioning of the organisation.

2. To find out the difference between the theoretical aspect & practical aspect of

running a business.

Secondary Objectives

1. To gain practical knowledge about the functioning of various departments of the

organization.

2. To understand the organizational processes, procedures followed at different

department of the organization. At different department of the organization.

3. To study the quality assurance procedures and techniques adopted for, keeping the

national and International standards.

1.3 Scope of Study

9
The study is intented to provide managerial insight to a management student. If will enable

him to take up responsibilities of a manager at ease and provide him more confidence. The

scope of the study is confined to a few selected departments and their functions. The trainee

may also get a feel about how business executives operate in their work settings.

1.4 Methodology

The study employed the method of observation to collect the required data for completion of

this report. Discussion and interviews with concerned officials were also held for the purpose.

Collection of data

The area of data collected is from ‘K A M C O’

Source of data

Data’s collected are classified as

1.Primary data
2.Secondary data
1. Primary data

Primary data’s are those which are collected for the first time happen to be original in

character. Primary data collected through discussions and interviews with management

personnel’s of various departments.

2. Secondary data

Secondary data’s were collected from various books, annual reports, company’s documents

and from company website

CHAPTER 2

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 INDUSTRY PROFILE

State of kerala has peculiar state of affairs in its agricultural economy. Being a

consumer state, it depends largely on agricultural products from the neighbouring states. It has

tiny and small farmlands owned by private landowners. Even those available lands are not fully

utilised for cultivation, owing to economic reasons. Low productivity coupled with prohibitive

costs of cultivation has virtually driven the traditional farmers out of their vocation! Under this

scenario, mechanization of the farming is a non-starter proposition in the state. Barring

traditional tools and tackles employed by the farmers in the cultivation, there were no

motorised or mechanised equipments available in the state. KAMCO, was adventurous enough

to venture into this bleak scenario, and introduced its power tillers and other medium and small

sized mechanical aids of cultivation. The Kerala farmers grabbed this opportunity, and made

use of the benefits of automation in their fields, which in turn made the entire operations of the

KAMCO successful. As of now, KAMCO is the one and only one industrial unit in the state,

which provides machineries to the farming segment as an aid to their cultivation. Being a

monopoly, KAMCO controls the Kerala market in supplies of automated farming equipments.

Other competitors are yet to step into scene in the state. This industry is facing a great threat

that the changing of agricultural economy into an industrial economy

Producers in the same industry in the world market are:-

1. KUBOTA POWER LTD,JAPAN

2. SUNTEC LTD,SHENZHEN

Producers in the same industry in the domestic market are:-

1. VST TILLERS LTD, Banglore

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 2. BULL AGRO IMPLEMENTS, Coimbatore

3. ASB GROUP,INDIA, New Delhi

4. SOVZA SIFANG AGRO ENGG.PVT.LTD, Maharastra

5. BANWAIT TRADE SERVICES, Punjab.

2.1 World scenario

World demand for agricultural machinery and equipment is forecast to increase 3.7 percent

annually through 2012 to $111 billion. Gains will be paced by the accelerating mechanization

of the agriculture sectors in currently large agricultural equipment markets such as China and

India whose farm sectors are nevertheless still significantly unmechanized and inefficient in

comparison to those found in more developed markets. Moreover, rapidly rising global staple

food crop prices and shortages in 2007 and early 2008 indicate a growing necessity to increase

farm productivity and Effie- ciency in developing countries. To some extent, gains could be

hindered if energy prices remain at their current high levels through the forecast period and

negatively impact global economic growth.

China, India hold best growth prospects in developing areas

Strongest growth in agricultural equipment demand will be registered in developing countries,

with China and India holding by far the best prospects. Other large developing nations with

sizable agricultural sectors, such as Brazil and Russia, will also post healthy gains as a result of

increasing mechanization of their agricultural sectors. Besides benefitting from rising incomes,

farmers in these regions will continue to strive to increase productivity through further

automation and replacement of older equipment. Increasingly, draft animals such as horses and

oxen used during various stages of the farming process will be replaced by agricultural

equipment. In addition, rising wages in many of these countries as well as large scale migration

12
to urban areas will necessitate the replacement of human capital with fixed capital such as farm

machinery.

Gains in developed regions to lag world average

The US will experience gains that will lag the world average due to decelerating growth in

economic and agricultural sector output in the country through 2012. Western Europe will post

particularly anemic growth through 2012, with gains arising from a strong 2007 when demand

(in dollars) was bolstered by a strong Euro. Farmers in both the US and Western Europe will

be adversely impacted by continuing trends in favor of free trade and against protectionist

measures such as subsidies for domestic farmers and tariffs on agricultural product imports.

Throughout the industrialized world, virtually all demand will be replacement oriented in

nature, as the farming sectors of most countries are not growing in terms of number of farms,

acreage harvested and similar physical variables. Given the widespread diversity and often

interrelation of applications, growth prospects for specific types of farm machinery do not vary

substantially when viewed at the global level.

Global demand to rise 3.8% yearly through 2012 World demand for agricultural equipment is

forecast to rise 3.8 percent per year through 2012 to $112 billion. Gains will be paced by the

accelerating mechanization of the agricultural sectors in large markets such as China and India.

Farm sectors in these countries are still significantly unmechanized and in efficient in

comparison to those found in more developed markets. Other large developing nations with

sizable agricultural sectors such as Brazil, Indonesia, Russia and Thailand will also post

healthy gains as a result of increasing mechanization. Besides benefitting from rising incomes,

farmers in developing regions will continue to strive to increase productivity through further

automation and replacement of older equipment and of draft animals used during various

13
stages of the farming process. In addition, rising wages in many of these countries, as well as

large scale migration to urban areas, will necessitate the replacement of human capital with

fixed capital. The US will experience gains that lag the world average due to decelerating

growth in economic and agricultural sector output in the country. Western Europe will post

particularly anemic growth, coming off a strong 2007 when demand (in dollars) was bolstered

by a strong Euro and several other less significant factors such as Germany’s biofuel boom-

related forage harvester Purchases. In the short term (2008 and 2009), the West European farm

machinery market should continue to register strong growth as a result of rising farmer

incomes due to high global crop prices. Farmers in both the US and Western Europe will be

adversely impacted by continuing trends in favor of free trade and against protectionist

measures such as subsidies for domestic farmers and tariffs on agricultural product imports.

Replacements, technology upgrades to boost demand Throughout the industrialized world,

demand will largely be replacement oriented in nature, as the farming sectors of most countries

are not growing in terms of number of farms, acreage harvested and similar physical variables.

Demand will also be aided by the development and growing use of nascent higher value

“precision agriculture” products that make extensive use of modern technologies such as

Global Positioning Satellite (GPS) systems and wireless sensors. Given the widespread

diversity and often interrelation of applications, growth prospects for specific types of farm

machinery -- tractors, combines, planting and fertilizing, plowing and cultivating, and haying

machinery, etc. -- do not vary substantially when viewed at the global level

2.2 Indian scenario

Farm mechanization helps in effective utilization of inputs to increase the productivity of land

and labour. Besides it helps in reducing the drudgery in farm operations. The early agricultural

mechanization in India was greatly influenced by the technological development in England.

14
Irrigation pumps, tillage equipment, chaff cutters, tractors and threshers were gradually

introduced for farm mechanization. The high yielding varieties with assured irrigation and

higher rate of application of fertilizers gave higher returns that enabled farmers to adopt

mechanization inputs, especially after Green revolution in 1960s. The development of power

thresher in 1960, with integrated Bhusa making attachment and aspirator blower and

mechanical sieves for grain and straw separation, was the major achievement of Indian

engineers. These threshers were widely adopted by the farmers. Gradually demand for other

farm machinery such as reapers and combine harvesters also increased. Equipment for tillage,

sowing, irrigation, plant protection and threshing have been widely accepted by the farmers.

Even farmers with small holdings utilize many improved farm equipment through custom

hiring to ensure timeliness of farming operations. The present trend in agricultural

mechanization is for high capacity machines through custom hiring and for contractual field

operations. However, mechanization of horticulture, plantation crops and commercial

agriculture is yet to be introduced in the country. The pace of farm mechanization in the

country accelerated with the manufacture of agricultural equipment by the local industries.

With the modest beginning of manufacture of tractors in 1960s with foreign collaboration, to-

day the Indian farm machinery industries meet the bulk of the requirement of mechanization

inputs and also export. The manufacture of agricultural machinery in India is quite complex

comprising of village artisans, tiny units, small-scale industries, State Agro-Industrial

Development Corporations and organized tractor, engine and processing equipment industries.

Traditional hand tools and bullock drawn implements are largely fabricated by village

craftsmen (blacksmith and carpenters) and small-scale industries. The smallscale industries

depend upon public institutions for technological support. These industries, however, upgrade

these designs and production processes with experience. Organized sectors confine to the

15
manufacture of machines like tractors, engines, milling and dairying equipment. These

industries have adopted sophisticated production technologies, and some of them match

international standards. The enhanced scope of import of technology (product designs and

manufacturing process) by organized sector and entry of foreign nvestors is likely to accelerate

exports. Since cost of production of farm machinery in India is more competitive due to lower

labour wages, the importers from variousCountries will find Indian farm equipment more

attractive. Indian products, however, shall need improvements in quality for gaining major

export growth. For this, mass production of critical and fast wearing components and their

standardization would greatly help

16
 CHAPTER 3

COMPANY PROFILE

3.1 Introduction

The Kerala Agro Machinery Corporation Ltd popularly known as ‘KAMCO’ was

established in the year 1973 as a subsidiary of Kerala Agro Industries Corporation Ltd (KAIC)

and subsequently became a fully owned Government of Kerala undertaking at Athani, 25km

north of Kochi. It all began in 1958, when Dr. Rajendra Prasad, the President of India was

presented with a ‘Kubota Power Tiller’ by the Japanese (M/S. Kubota Ltd, Japan, the world’s

leading manufacture of power Tiller and other agriculture machinery).

The Kerala Agro Industries Corporation Limited (KAIC Ltd.) Trivandrum,

(Government of Kerala Company) promoted the establishment of Kerala Agro Machinery

Corporation Limited (KAMCO).The KAIC Ltd. Entered into a technical collaboration

agreement with M/S.Kubota Limited, Japan in February 1972.On 15.11.1972, the Kerala

Industrial and Technical Consultancy Organisation Limited (KITCO) were entrusted with the

work of Rs.2 crores as a subsidiary of M/S.KAIC Ltd, which held the entire paid up capital

shares in KAMCO. Even though the company was formed as a subsidiary of KAIC Ltd,

subsequently the company became a fully owned government company by transferring the

shares held by KAIC Ltd.

KAMCO has completed its 33 years and is running on profit for the last 22 years

continuously increasing its production, turnover and profit year after year.

17
3.2 Objectives of the Company

The main objective of the company is to manufacture or assemble in

India, either in collaboration or otherwise tractors, power tillers, power reapers, combine

harvesters, transplanters, diesel engines, pump sets, accessories and attachments and spares

thereto.

The other objectives are as follows;

1. To organize, conduct or manage engineering workshops or repair shop.

2. To manufacture, import, buy, sell, or deal in workshop machinery, machine

tools and metals of all kinds and to undertake repairs.

3. Servicing of agricultural machinery or other equipments, implements and

tools

4. Rendering other kinds of services for services for consideration or

otherwise.

3.3. Milestones of the Company

KAMCO has three more units:-Kalamassery unit in Ernakulam dist. Kanjikode

unit in Palakkad dist. and Mala unit in Trichur dist. The Kalamassery unit

manufactures diesel engines, Kanjikode unit produce power tiller and the Mala

unit manufactures power reaper.

1. A major milestone for the company was the award of the International Quality

Excellence Certificate under ISO 9002 in October 1996.

2. KAMCO is the second public sector undertaking in Kerala getting this coveted

certificate and the only public sector undertaking who has got ISO 9002

certification justify in the high standards of the products for their three units.
18
 3. From 15-03-2002 onwards KAMCO became an ISO 9001- 2000 registered

company by KPMG quality registration.

3.4 Business Environment of Kamco

As far as KAMCO Ltd is concerns the business environment is in positive side in

all respect. KAMCO Ltd products having heavy demand in the market, they are unable to meet

the requirement of the customers. The company is functioning in a cordial and happy

atmosphere. The officers and staff in the company are very co-operative and friendly moving.

The Cochin Port and Cochin Aerodrome are situated very near to the company and this will

also help to boost the business. The company is running a stabilised canteen for their

employees to maintain a harmonious atmosphere resulting to make maximum output.

3.5 Present Status of Kamco

KAMCO is one of the professionally managed company owned by state

government. Present status of KAMCO is synonymous with service to the small and marginal

farmers of the country. KAMCO through their precision and quality is revolutionizing the

small and marginal holdings throughout the country. Today KAMCO’S products are widely

used and demanded in all over India, enjoying over 60% of the market share at national level.

The company with its four plants at Athani, Kalamassery, Kanjikode and Mala unit is

confidently meeting the demand for KAMCO products in India and abroad. The main markets

for the products are at West Bengal, Assam, Tamil Nadu, Tripura, Kerala, Megalaya, Bihar,

Gujarat and Manipur. Presently KAMCO have 45 dealers all over India

19
3.6. Future of Kamco

KAMCO is looking proudly ahead into more promising future. Future will

also see KAMCO‘s diversification products in the farm mechanisation field contributing

significantly in food production and predicting itself to the cause of self reliance and social

responsibility in the service of people without respite.

Today KAMCO is a multi-product, multi-location company with two production

units at Ernakulam dist., one production unit at Palakkad dist. And one production unit at

Thrissur dist. KAMCO has a number of diversification plans in the anvil. It’s proposed to set

up research development activities which will hopefully help it to develop new products in the

future and live up to its promise, that its products will be “A boom for the farmer and again for

the nation”. The quality policy of KAMCO is “Total customer satisfaction through quality

products and service with improved technology and employee participation”.

3.7 Corporate Governance

Being a non-listed GOVT. Company, provisions of the company’s Act 1956 with

regard to corporate governance is not applicable.

3.8 Pollution Controlling System of Kamco

Athani, Palakkad and Mala units of the company have installed effluent treatment

systems designed by the LBS centre for science and Technology and approved by State

Pollution Control Board. The all new engines will reduce pollution and it also reduces the fuel

consumption than the ordinary engine.

3.9 ISO 9001-2000 Certification

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 Athani, Palakkad and Kalamassery units of the company is working with ISO 9001-2000

version certification.

3.10 Industrial Relations

The industrial relation in the KAMCO is cordial which forms the basis for sustained

growth of the organisation.

3.11 Quality of Products

The company enjoys the position of premier manufacture in the field. The products

manufactured are indigenized and there is no imported content in any of the items. The

machines have acquired a reputation for quality and reliability. KAMCO is an ISO 9001

organisation with the aim of providing quality products at reasonable price to the satisfaction

of customers. The company enjoys all India market through a network of about 45 dedicated

dealers. Products are sold on premium at several places. They have acquired a brand preference

because of the high quality and reliability associated with machineries.

3.12 Quality Policy of Kamco

Total customer satisfaction through quality products and service with improved

technology and employee participation. We comply with the requirements of the customers and

the applicable statutory regulatory requirements. The effectiveness of the established quality

management system is continually improved to enable achievement of the policy.

Objectives

1. To ensure that quality requirements of the products and service offered are

maintained at all stages.

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 2. To create a culture among all employees towards total concepts and productivity

through total involvement and commitment of all employee.

3. To create healthy working environment for attainment of quality goals with

excellence and to make quality a way of life.

4. To detect and prevent non-conformance and defects as early as possible and to

eliminate them through appreciate changes to the quality management system.

5. To achieve and maintain quality leadership through continuous technology up,

gradation, improvements in techniques, system and procedures and to meet

customers changing needs.

3.13 Organsation Structure of Kamco

KAMCO is governed by the Board of Directors. Board includes Chairman,

Managing Director and other Directors. The Government of Kerala nominates the Chairman of

the Board. The Chief Executive Officer of the company is the Managing Director who shall

exercise powers, subject to the overall control and supervision of the Board. The Managing

Director is the topmost official and the Government gives delegation of authority to the

Managing Director. He may be entrusted and delegated power from time to time by the Board.

The Managing Director is the operational head of the company supported by General Manager

and Deputy General Managers for different sections. Managers and Deputy Managers will

assist the General Manager and Deputy General Manager.

Board of directors

1. V.Chamunni Director & Chairman

2. S.M.Reghunathan Managing Director

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3. C.P.Murali Director

4. M.Aboobakar Director

5. K.Ramdas Director

6. Edakulam Hameed Director

7. Sulaiman Khalid Director

8. K.K.Gangadharan Director (Director of Agricult-ure, Govt. of Kerala)

9. M.Albertian Director (Dy Secretary, Agric- ulture, Govt. of Kerala)

23
 CHAPTER 4

DETAILED STUDY OF DEPARTMENT

KAMCO – The govt. company works with the help and support from the different

departments. All departments work uniquely for the attainment of the organisational goal. The

performance of the different departments was amazing for the past several years, that’s the

reason why the company’s profit volume is increasing at a higher rate. The head of each

department is Deputy General Manager (DGM) assisted by managers and Dy. Managers and

Asst. Managers at different levels. Department heads are directly liable to report to Managing

Director.

KAMCO have totally 8 departments. They are as follows:-

1. Production Department
ASSEMBLY SHOP &
2. Marketing Department PAINTING

3. Human Resource Department

4. Finance Department

5. Purchase & Stores Department

6. Quality Assurance & Maintenance Department

7. System Department

8. Engineering and Research & Development Department.

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 4.1 STRUCTURE OF PRODUCTION DEPARTMENT

MANAGING DIRECTOR

MANAGER (PRODUCTION)

DEPUTY MANAGER

MACHINE SHOP

SHIFT OFFICERS ASST. ENGINEER

(Asst Engineers) (Production)

CHARGE HANDS CHIEF MECHANIC CHARGE HANDS

MACHINE MECHANICS
WORK
OPERATORS
ASSISTANTS

WORK ASSISTANTS

Fig No 4.1 structure of production department

4.1.1 Product Profile

All the products of KAMCO have high demand in Indian market.

KAMCO’s Products include:-

25
 1 KAMCO Power Tiller Model KMB 200

2 KAMCO Diesel Engine

3 KAMCO Power Reaper Model KR 120

1. Power Tiller

Power tiller is the main product of KAMCO. It is a versatile machine that

7
has radically changed the old labour intensive methods of agriculture, by making almost all

farming operations faster, cheaper and easier. The cost on tiller is around 1.10 lakh.

Features

1 Simple movement and control for easy of handling

2 Perfectly balanced and vibration- free engine to reduce operator fatigue

3 Unique radiator cooling system helps in non stop operation

4 ‘Fail-safe’ safety devices to prevent accidents

5 Automatic fuel control to save precious energy

6 Distinctive radiator control system for continuous operations

7 It is faster

8 Make cleaner windrows for easier collection

9 6 Forward speed,2 Reverse speed,4 Tilling

10 Rotary, diesel-powered, water cooled, with radiator

11 Weight is 485 kg

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2. Diesel Engine

FEATURES

1 Economical with minimum fuel cost

2 Smooth starting

3 Easier operation

4 Equipped with radiator

5 Less vibration

6 Less noise

7 Travelling speed 15 kmph

8 H P -12.

3. Power Reaper

Features

1 Power reaper harvests and makes windrows at the rate of 3-4 hours for hectare.

2 It is light enough to carry by two persons

3 Smooth chain conveyer action deliver plants gently making clean windrows

4 Weight is 136 kg

5 Engine type is single cylinder,4 stroke CSD RR, side valve air cooled engine

6 Maximum H P 3.6 Ps.

27
 4.1.2. Manufacturing

KAMCO’s Power Tiller have more than 850 different components,

majority of which are supplied by dedicated small and medium scale industries from nearby

states. Functionally critical components (almost 13) are manufactured in KAMCO’s house

itself.

Company has got a modern machine shop with special purpose machines, which

ensure conformity with prescribed quality standards. Inspection at various stages off

manufacturing is carried out, which help in reducing the process to the minimum.

4.1.3 Other Products

KAMCO also deals with the following products:-

1. KAMCO Super DI Power Tiller

2. KAMCO Power Stone Cutter KSC 625

3. KAMCO Agria 602 DE Power Tiller

4. KAMCO Agria Garden Tiller

All the above products are supplied by KAMCO to the needy people by the way of

manufacturing on a limited edition. KAMCO has a future plan of manufacturing the above

items in a bulk number

28
Duties and responsibilities

The head of production department is Production Manager. Production

Department is divided into two:-

1 Machine Shop

2 Assembling & Painting

1. Machine Shop

Machine Shop is responsible for ensuring the conformity with prescribed standards, the

workers in the machine shop are fully experienced.14 components are manufactured in the

Machine Shop. These components are called as critical components. Processes like milling,

drilling, boring etc are doing on the materials to get products which are used in the assembly.

They inspect the various stages of production. This reduces rejection to a great extend. Shift

officers are in charge of machine shop. From machine shop the finished products are sent to

Quality checking and from there to stores.

2. Assembling & Painting

Assembly is one of the major sections in the production department. The finished products are

taken from the store and it is sent to the assembly as required. The engine assembly is one of

the major works in the assembly. After testing the assembled engines, it sent to the painting

section. Through different assembling we get the final product.

In KAMCO, they are using a good advanced painting booth. After clearing the

components will go for painting through a conveyer belt and after painting it will go to the

oven through the belt. Mainly they are using 2 colours for tillers, one is ash and the other is

post office red.

29
In each stages of Production Quality check up is done.

Engine line assembly consists of 3 steps ie;E1 Assembly,E2 assembly and engine

testing. After engine line assembly and transmission line, process testing is conducted for all

speads, brake, driving shafts, sound etc.

After all these processes, engine finishing is done .Then engine is mounted on tiller and

the tiller finishing part is done.

Duties and responsibilities of production manager

Production Manager is in charge of production department.

1. Fixing the parameters of production department.

2. esponsible for solving problems relating to production.

3. Ensuring whether production is as per order and fixation of monthly target according to

requirements.

4. Optimization of production costs.

5. Inspection of incoming materials.

6. Modification of production plans.

The production department submits a Stores Issue Request to get the materials needed for
production. After production, the department splits the material into:

1. Final products and damages

2. Assembly rejected parts.

Damaged parts are considered as scarps and put for auction. After assembling,

final products with the help of finished product transfer note is moved to marketing

department.

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 4.2 MARKETING DEPARTMENT

MANAGING DIRECTOR

DEPUTY GENERAL
MANAGER

MARKETING MANAGER

REGIONAL MANAGER

AREA MANAGER Asst. ENGINEERS (Service)

OFFICE STAFF MECHANICS

Fig .No . 4.2 Structure of Marketing Department

Duties and responsibilities

DGM (Marketing)

1. Presenting marketing strategy to the board

2. Obtain management approval for periodical target

3. Developing or implementing or Customer loyalty or retention

4. Reporting performance to board for review

5. Arranging press conference periodically(annually)

31
 Manager (Marketing)

1. Preparation and implementation of product/segment wise marketing plan

2. Setting targets to managers reporting to him

3. Implementation of marketing plan

4. Arranging dealer meets

5. Preparing of MIS reports

A company’s survival depends upon better marketing strategies adopted by the

company. Surviving from a lot of difficulties KAMCO became No:1 brand in the agricultural

machinery market. Due to globalization KAMCO products have to compete with the

International products. The products from China is a major threat for the company because if

it’s lower price. But KAMCO is not ready to compromise with the quality of its products for

reducing their price. This marketing strategy won the target market. Even after facing all the

challenges of these competitors the marketing department could play a better role in getting

good results.

In the previous year company sold more than 7600 units. Considering the Indian market

60% of the market share is in the hands of KAMCO. kamco could achieve this by due to

Globalisation, Foreign countries like China and Korea could introduce their products in Indian

markets.Their products are very cheep. But interms of quality, KAMCO is first.

4.2.1 competitors

In India VST, Bangalore is the major competitor of KAMCO firms from. Japan, Korea and

china are also competing with KAMCO in the same market.

32
4.2.2 International market

KAMCO’s Power Reaper has been exported to Iran and Srilanka recently. The export

quantity is not a huge on but still they getting orders from those countries. These machines

have been well accepted by the customers.

4.2.3 Dealers

Sales of the products are made only through dealers. In each state there are 2 dealers. One is

govt. institution and other is a Pvt firm. The company has 45 dealers all over India. New

dealers are appointed to cover selected districts in Tamil Nadu, Karnataka, Maharastra, Orissa

and Andra Pradesh and in the other states where the company has dealerships. The dealers

target is depend upon the area. If a dealer exceeds their target they get incentives depending

upon the excess quantity sold through them. The transporting facilities are provided by

KAMCO itself. The sales are made against cash advances except in few cases; it is made

against bank guarantee if the payment period does not exceed 30 days.

Major Dealers in India

1. West Bengal

Govt. - West Bengal Industries Corporation

Pvt - Friends machinery and spares Ltd

2. Assam

Govt. - Assam Agro Industries Development Group

Pvt - ChemTrade India Pvt Ltd

3. Tripura

33
 Govt. - Tripura horticulture group

Pvt - Krishishilpa Udyog

4. Meghalaya

Pvt - Stanley Roy Construction

4.2.4 sales promotion

In the International market the sales promotion of the company is only through website. In

India all the state govt.’s have their own dealerships to sell the products. The company gives

dealerships to the private parties as well company’s main product is power Tiller. Company

has invented a new engine, which is a diesel engine with direct injection. For the sales

promotion of this engine company selling the KAMCO Super D1 Power Tiller with the same

price of the ordinary Power Tiller

Advertising is also a part of sales promotion. In every budget company allocate nearly 50

lakhs for advertising. Company also provides some financial help to the dealers for

advertisements.

Major markets

Tillers - Kerala, Tamil Nadu, West Bengal & North Eastern States

Reapers - Chattisgarh, Orissa, Andra Pradesh, Kerala & Tamil Nadu

34
 4.3.HUMAN RESOURCE MANAGEMENT

MANAGING DIRECTOR

DEPUTY GENERAL
MANAGER

MANAGER

PERSONNEL SECRETARY

DEPUTY MANAGER

ASSISTANT MANAGER Asst. MANAGER

(SECURITY)

SUPERINTENDENT SUPT. WELFARE

Fig No 4. 3 structure Human resource Management

A good Human Resource Department is considered to be one of the greatest

assets of the company. HR department deals with the welfare of human beings working in an

organisation. Besides welfare , it looks after discipline, IR, training and development, desirable

work atmosphere ,interpersonal relationships etc. HR Department helps in moulding the

individuals to attain maximum development. The total employees strength of KAMCO is 400.

35
 KAMCO has been running on profit for the past 22years.Behind these achievements,

there lies the co-operation and hardworking mentality of its employees. Without these

dedicated employees, KAMCO would have never reached the peak of success and

achievements. About 15 employees are working in this department

4.3.1 Workman classification

Workman shall be classified as:-

1. Permanent

2. Probationers

3. Temporary

4. Trainees

5. Apprentices
Leave

The following are the leaves granted to the workmen in KAMCO:

1. Earned Leave (Leave with wages)

2. Casual Leave

3. Sick Leave (for those who are not covered under the ESI scheme)

4. Special Leave – Leave without wages

5. Maternity Leave will be granted as per the provisions of the Maternity Benefit Act to

those not covered under the ESI Act

The administration of leave will be done as provided under the long-term

settlements between the management and the workmen in force from time to time.

The Human Resource Department of KAMCO is concerned with the recruitment &

selection, training and development, promotion, welfare of workers and cultural activities.

36
4.3.2 Recruitment and Selection

For KAMCO, there is a specific procedure for Recruitment and Selection. We can
see two types of recruitment in KAMCO:-

1. PSC Recruitment
2. Company Recruitment
Recruitment

For the posts like Accountants, Office Staffs, Typists, Stenographers etc the people are

hired through PSC recruitment. Executive and Technical post are filled through Company

recruitment. Employment Exchange forwards a list of candidates for the required posts in the

unit on their notification to the District Employment Officer, Ernakulam. Vacancies are

advertised in major news papers or notified to the Employment Exchange in accordance with

the Govt. rules. There is no discrimination based on colour , religion, race etc. Appointments

are purely based on merit. The Dy. Manager is in charge of Recruitment and Selection,

Promotion, Performance Appraisal, PF etc.

Selection

After obtaining applications, initial screening is done on the basis of the specifications

given for the job. Short listed candidates considered matching the profile, go through the

selection process. The selection process consists of written test, group discussion and

interview.

4.3.3 Training and Development

37
 Awareness training or orientation training is given to the new employees for a period of

one week or one month. After this training, orientation report will be collected from each

department. After analysing this orientation report they will give placement as a trainee under

probation. Probation period is for two years.

For the workers, Workers Education Programme is conducted under the supervision of the

workers education centre. For this purpose, a 2-3 months training classes are provided to the

trade union leaders of the organisation who act as the workers teachers. After attending the

training programme, conducted at the workers education centre, they conduct classes to all

workers in the organisation by forming them into different batches.

For the officers at the top level, middle level and supervisory level, Management

Development Programmes are conducted. Here, training is provided on a contract basis for 2-3

days by the faculty from different management institutes like Kerala State Productivity

Council, Centre for Management Development, Indian Institute of Management etc. ISO

awareness training classes are also conducted; the subjects handled in these classes are

Personality development, Personal Relationship, Transactional Analysis and Productivity.

For all the employees from the lower level to assistant engineers, the initial 2 years is

their training period for which they get the consolidated pay. Apart from these, a fifteen days

computer awareness training program is conducted with the changing techniques at regular

intervals.

Training and Development is taken care by HR Manager who is assisted by Personnel

Secretary. Training charges are born by the company itself.

HRD Activity

38
 The company gives cardinal importance to HRD activities. Company follows a pre-

planned trained calendar covering all areas and the training is imparted with the help of various

institutions. Effectiveness of the training programs is periodically reviewed for further

improvement.

Promotion

As per the promotion policy of KAMCO, an employee will be eligible for promotion if he

has served in a particular post for at least 3 years, or he will be given promotion when the

vacancy occurs. Another aspect is Grade promotion, ie, promotions are based on grades of

employees. In worker category there will be a grade change after a period of 5 years.

For officer level, grades allotted are as follows:-

G8 – Asst. Engineer, Superintendent

G9 – Asst. Manager

G10 – Deputy Manager

G11 – Manager

G12 – Senior Manager

G13 – Deputy General Manager

G14 – General Manager

Promotion ratio 1:1 is applicable to G3 and G4 employees ie, technical assistants and

operators/mechanics respectively. Transfers are mainly for officers only. For that MD is the

authorised person.

39
4.3.6 Wages and Performance Appraisal

Wages of the workers are settled for 4 years. It is mainly a long term

settlement. Salary settlement is based on the Kerala Government Employee Salary of Pay.

Performance Appraisal is conducted once in a year fir officers and for workers, it is

conducted when grades are given. There is a prescribed form for conducting Performance

Appraisal.

Benefits Provided by Kamco to its Employees

Benefits can be classified as Statutory and Non Statutory

Statutory

1. Esi

2. Pf

3. Gratuity

4. Canteen

5. Restroom

6. Light

7. Ventilation

8. Safety measures like Glouse, Boots etc.

Non Statutory

1. Conveyance facility

2. Allowances

40
 3. Incentives

4. Loan Facility

5. Vehicle Loan Facility etc.

4.3.7 Kamco’s Welfare Programmes

Welfare Programmes can be classified in 6 categories. They are:-

1. Essentials :- It includes items directly needed by employees during production and in

case of emergency. ex- Goggles, Draught relief fund, funeral expenses etc.

2. Work Security :- It refers to items of support given by the company for immediate

protective element while performing a job. These benefits are given individually, section

wise or company as a whole. Eg-LIC Schemes, accident benefits, personnel accident

benefits, insurance, first aid etc.

3. Health care facilities :- It involves canteen and medical facilities. Example – ESI, Medical

Reimbursement etc.

4. Well being and Motivation :- It is aimed at developing a sense of loyalty and boosting

morale. Example – House building advance, loans, contribution to recreation etc.

5. Work surrounding facilities :- KAMCO provides spittoons, latrines, canteen facilities,

reading room, television, recreation etc.

6. Training and education :- It helps the employees to perform better in work place and attain

self actualisation. It includes expert training expenses and counselling charges.

7. Cool drinking water, Welfare officer, washing allowances, Occupational safety, first aid

boxes, canteens etc.

8. Shift allowances are as follows :

1. First shift – Rs 5/day.

41
 2. Second shift – Rs 7/day.

3. Third shift – Rs 8/day.

1. Attendance bonus: For no absence during a month 3 days wages is given. For half day,

1 ½ days wage will be given.

2. Special allowance Rs. 60 given to all employees.

3. Missed meal allowance: Rs 18 given to security staff coming for 3 rd shift i.e. 12 am to 8

pm Rs 24 given to workman on Sundays/holidays, when canteen is not functioning.

4. Milk allowance: ¼ litre of milk given to welders and workmen engaged in

painting/phosphate plant.

5. School advance of Rs 1800/- is given to employees.

6. Conveyance allowance for purchasing cycle, scooter, cars, loans are given to

employees above Deputy Manager grade. For minimum 5 years of experience is required to

avail car and scooter loans. Interest is 10%.

7. Employees are given festival allowances of Rs 5000/- ever year in connection with

onam, ramzan, Christmas etc. The amount is recovered in 10 equal instalments.

8. Transport subsidy of Rs 70/- given to all employees. KAMCO is not having vehicles

for transportation. Second shift employees are provided with vehicles on contract basis and

subsidized coupons.

9. Medical check-up:- For selected employer in the technical department they provide

medical check-up in a year. It depends upon the nature of work.

10. First aid during the work, if any accident occurs first aid will be provided to workers.

11. The other allowances are cash handling allowances, house rent allowances, overtime

allowances, uniform stitching allowances etc. A full fledged canteen is functioning at

42
 KAMCO. It provides healthy and hygienic food at subsidised rates to the workers and

employees working at various shifts.

4.3.8 Wages for workmen:

All workmen are employed on monthly wages and will be paid on a monthly
basis.

4.3.9 Attendance:

Every workman shall be given an attendance card containing his name, number

etc. Similarly every permanent and probationary workmen shall be provided with an

identity card containing his stamp size photo, name, number, date of joining, etc.

Assistant Manager Security is in charge of maintaining attendance and also

maintaining discipline in work environment.

4.3.10 Incentive:

A production incentive scheme is followed in KAMCO for the benefit of

employees, which constitute quarter of the pay packet. It aims at increased output,

productivity and utilisation of resources. This scheme covers all the permanent

employees.

In KAMCO, incentives are mainly of 3 types:

1) Direct incentives

2) Semi direct incentives

3) Indirect incentives

Shift Timing:

43
For Plant Working:

7 am to 3 pm - 1st shift

3 pm to 11 pm – 2nd shift

9 am to 5 pm – General shift

For Security Staff:

8 am to 4 pm - 1st shift

4 pm to 12 am – 2nd shift

12 am to 8 am – 3rd shift

For Office Staff:

9.30 am to 5 pm – General shift

9.30 am to 1.30 pm – Saturday

44
 4.4. FINANCE DEPARTMENT

MANAGING DIRECTOR

DEPUTY GENERAL
MANAGER (FINANCE &
COMPANY SECRETARY)

MANAGER (COST / DEPUTY MANAGER

AUDIT) ACCOUNTS

DEPUTYMANAGER SUPERINTENDENT
(COSTING)

ACCOUNTANT
SUPERINTENDENT
COSTING

ACCOUNTANT

Fig .No 4.4 Structure Of Finance

Department

45
Duties and Responsibilities

DGM (Finance)

1. Submission of strategic matters regarding to finance to board of decision.

2. Submission of quarterly and annual audit accounts to the board.

3. Presentation on dividend decision (final and interim dividend).

4. Financial concurrence on corporate investment decisions.

5. Overall supervision of day to day functions of departments as HOD.

Manager (Cost/Audit)

1. Maintenance of cost record and arranging for cost audit.

2. Preparing MIS reports on pricing and costing, leading to cost control.

3. Internal audit of various activities and submission of periodical internal audit

report.

4. Preparation of product wise, segment wise cost records.

5. Preparation of quarterly, half yearly, annual financial statement.

6. Treasury functions

The finance department deals with the procurement and management of funds. This

department controls the receipts and payments of each and every activity for all the divisions.

In KAMCO ,finance department plays a major role because in public sector only very few

companies are earning profit .KAMCO have more than one unit established with their own

fund. Surprising thing is that KAMCO is giving dividend and making profit for 22 years. The

surplus money is invested in the treasury and gets an interest of 7-8% from the treasury .The

finance department keeps record of everything concerning income or expenses.

46
4.4.1 Functions of Finance Department

1. Budget & Budgetary control

2. Management of receipts

3. Management of payments

4. Auditing

5. Costing

6. Statutory transaction

1 .Budget & budgetary control

The annual budget of the company is prepared both for the capital and

revenue expenses based on the requirements furnished by various units and

departments. The request of the department are analysed only after consulting with

various departmental heads and corporate divisional management group and finalised

only on the basis of disposition of funds. The budget review is carried out half yearly.

If some changes are required the details are submitted to management/board for the

revision and approval

2. Management of receipts

Payments from dealers /customers are recived only through marketing

department. They keep proper receipts customer wise and dealer wise. If

there is an outstanding dept it must be informed to the marketing

department once in a month. Insurance, freight outward, bank negotiation

etc are accounted and maintained to arrive at the cost of sale.

3. Management of payment

47
 Due to the availability of funds, payments commitments are honoured on the due

dates. All the payments are supported by approved vouchers. Payments are passed

mainly on the basis of IGRR. Advance payments are settled with in a time of 45 days.

Non receipts/delayed receipts extra is brought to the notice of store for remedial action

payments are usually done by cheque.

4. Auditing

Internal audit is an essential part of corporate functioning. Internal audit mainly

takes care for the “CARD” requirements of companies act. It act as a “WATCH DOG”

for an entire organization. The main function of department is to ensure that policy

decision of the management is strictly followed by the functional department and is

verified by the internal audit.

5. Costing

Costing reports are maintained as per the cost accounting rules. They mainly

subjected to cost audit ordered by company law board. Costing department also advice

management and department which are the potential areas of cost reduction. Mainly costing

departments analyses cost of production on an yearly basis. Costing department advice

accounts department the cost of rejection as per warranty claims.

6. Statutory transactions

Sales tax/income tax/TDS certificate/C- form/form-18 etc are issued are properly

accounted and settlements are made at the appropriate time Salaries and other payments,

remittance and recovery etc in the case of employees are done in a time.

48
The other functions are:-

1. Cash management

2. Bill Processing

3. Bank receipts

4. Bank payments

5. Sales accounting and costing

KAMCO has shares of 50 lakhs in International Airport, Nedumbassery and shares

of about 1.5 Cr. in Kerala feeds Ltd.

KAMCO is a multi-crore, multi-unit organisation. It means that KAMCO have

more than one unit or their own fund without any external funds. KAMCO has no

loaned fund and hence the finance charge is nil.

KAMCO has fixed deposits of about 20 crores, which earns interest to the

company. Company raises the working capital with the help of the customer advances

and fixed assets. KAMCO is paying dividend ranging from 10-30% for the last 15 years

without any fail.

KAMCO’s finance department deals with the procurement and management

of funds. This department controls the overall financial transaction of the company. It

controls the entire receipts and payment of all divisions. KAMCO is running on profit

for the last 23 years. It is a unique feature of KAMCO. No other organisations are like

this.

Finance department concentrates more on the cycle of flow of funds ie.,

inflow and outflow of funds and it also ensures that whether there is appropriate

49
 volume of funds needed for efficient business transactions. It also takes great care in

allocating the funds needed for efficient business transactions.

4.4.2 Bankers of KAMCO

1) Union Bank of India

2) State Bank of India

3) Federal Bank

4) Canara bank

5) State Bank of Travancore

50
 4.5 PURCHASE AND STORES DEPARTMENT

MANAGING DIRECTOR

MATERIALS MANAGER STORES MANAGER

SENIOR MANAGER SENIOR MANAGER

Asst. MANAGER Asst. MANAGER

Asst. ENGINEER TECHNICAL ASSISTANT

OFFICE STAFF OFFICE STAFF

Fig.No.4.5 structure of Purchase and Store Department

In KAMCO, the purchasing and stores department works together. But the
manager in charge is different for both. All the functions of these departments, comes
under one roof.

The stores department takes care of all the inflow and outflow of materials used
for production processes. Senior Manager of materials is in charge of stores
department. Purchasing department purchases the products from their vendors based on

51
 details of the required quantity, given by the production department. The company has
around 220 qualified vendors. The vendors are pre-qualified regarding their
registration, turnover, capacity etc. Purchase manager is in charge of purchase
department.

4.5.1 Duties And Responsibilities

Main Functions of Purchase Department:

1. Purchase planning

2. Price refixation

3. Vendor development

4. Purchase order generation

5. Negotiations with the vendors

6. Timely purchase of goods

Duties and responsibilities

General Manager (Purchase)

1. To be responsible for ensuring that all requisite raw material, spaces,

equipment etc are available, so as to ensure smooth production

2. To ensure optimum inventory levels

3. To avoid stock out situation of essential items in the warehouse

4. Product inventory is kept to the minimum level as possible

5. To avoid obsolescence of inventory by time action

6. To report to the board on inventory control measures

Senior Manager (Stores)

52
 1. To be responsible for item wise accounting and control of various inventory

items

2. In charge of warehouse Issues and Receipts

3. Property inventory control by EOQ max-min, Reorder level etc.

4. Up keeping and maintenance of warehouse items

5. Periodical reporting

4.5.2 Purchasing Process at KAMCO

A corporate purchasing system is being followed in KAMCO. All the other

units of KAMCO give their material requirements to the Head Office (Athani unit) and

the head office purchases the materials for all the other 3 units.

Procedure:

First of all, the production department prepares a budget based on the raw

material requirement. The budget contains the details regarding the raw material needed

such as quantity, amount, name of suppliers etc. All the other departments also prepares

budget based on the requirements. The budgets are then compiled by finance

department. The budget has to be approved by the Managing Director. There will be a

total amount which is to be allotted to different departments.

After the budget approval, the list of raw materials is sent to purchasing

department. The purchase department places the purchasing order. The purchasing

order contains the details regarding the quantity required, rate, payment terms, suppliers

name and address etc. The order is then handed over to purchase department. The

purchase department then invites quotation from approved vendors. The purchase

department then prepares a comparative statement on the basis of the received

53
quotation This is to select the most economical quotation for each specified materials.

KAMCO used to gives awards for the best vendors. It will help the company to get

quality product at the right time. Company has regular suppliers and they are ready to

give materials as per the requirements of the company. So at present, company is not

conducting any vendor development programmes. If necessary the vendor development

committee recommends new vendors and maintains the existing list

If the quotations seem to suit the terms and conditions, the purchasing

department sends a purchase proposal. Purchasing manager is in charge of sending

purchase proposal along with the approval of his superiors.

Assistant Engineers are in charge of inspecting the raw material of Tiller items.

All other general items are handled by respective departments.

It the item to be purchased is machinery, a committee will be formed to study

the its requirement in the company. If it is a general item like computers, office

furniture’s, then also an enquiry is conducted before forwarding the purchase proposal.

Vendor Rating:

In KAMCO, vendors are classified into 3 categories – A, B and C. Company

gives these grades to the vendors depending upon some factors like best quality, giving

the materials at right time and maintaining good relations with the company etc. If a

vendor gets ‘A’ grade, that means company trusts the vendor. The company takes the

same product from the vendor without any initial inspection. So the vendor who gets

‘A’ grade has certain commitment towards the company. They want to get the

relationship without any interruption. So they supplies quality goods at right time.

54
 ‘A’ category vendors are weighted above 90% marks.

‘B’ category vendors are weighted between 60% & 90%.

‘C’ category vendors are weighted below 60%. KAMCO provides all support

and guidelines for the improvement of this category. Even then if they are performing

poorly company will terminate them.

Vendor rating depends upon 54 factors. The 1st factor is quality and quantity of

goods supplied. In Kerala there is 70 vendors for KAMCO. Vendors are fixed on the

basis of quotation and tenders.

55
 CHAPTER 5

CONCLUSION

5.1 SWOT ANALYSIS

5.1.1 Strenghths Of Kamco

1. KAMCO is the market leader

2. Good working atmosphere

3. Reputed brand name & image

4. Better incentive scheme

5. Qualified & skilled labour

6. Environment friendly

7. Good industrial relations

8. Strong & accepted products

9. Extensive marketing network through dealers

10. Good & quality products

11. Country wide sales & service networks

12. Easy availability of manufacturing components

13. Good, uninterrupted & continuous vendors

5.1.2 Weaknesses Of Kamco

1. Delay in sanctioning of funds

56
 2. Political interference

3. Time delay in recruitment

4. Average age of workforce is 52 years

5. Strong influence of trade union

6. Lack of technological up gradation & automation

7. Promotion is based on experience, so performance will be poor

5.1.3 Opportunites For Kamco

1. Diversification programs & products

2. Innovativeness and bringing out new products to meet the new needs of customers

3. Boom in automobile industry and related engineering services

4. Due to good brand name KAMCO can extend the market

5. Export possibilities

6. Scarcity of labour & acceleries, so scope for mechanisation.

7. Availability of Monsoon

5.1.4 Threats Of Kamco

1. Influence of Govt. policies

2. High competition from domestic and from International market

3. Chance of Privatisation

4. Frequent change in the top management

5. Depression in agriculture

6. No restriction for Pvt. Parties to enter into this sector

7. High cost of operation

8. Whether problem

57
5.2 Observation

1. KAMCO has a good organisational structure and a good management systems

2. KAMCO is fully utilizing men, material and machinery

3. KAMCO provides all the welfare activities to its employees

4. KAMCO is having a production based incentive scheme

5. KAMCO is providing all the statutory and non statutory benefits to employees

6. KAMCO is having a good dealer network all over India

7. KAMCO have good growth possibilities

5.2 .1 Suggessions

1. Diversification of products and services is essential for success

2. Give more advertisement through all possible media

3. Introduce advanced technology for production

4. Incentive system should be encouraged

5. Counselling facility should be provided to the employees

6. Fill the existing vacancies

7. Young candidates must be appointed

5.3 Conclusion

Kerala Agro Machinery Corporation Limited (KAMCO) an ISO 9001 : 2000 company

was established in the year 1973 at Athani. Today KAMCO has different units in Kalamassery,

Palakkad and Mala. The ain products of KAMCO are KAMCO Power Tiller, KAMCO Power

Reaper, KAMCO Diesel Engine.

58
 KAMCO has a good dealer network all over the country. Customers of KAMCO are fully

satisfied with the products and hence KAMCO’s products have good brand name. The strength

of KAMCO is its employees. KAMCO is launching new products in accordance with the needs

and wants of farmers (customers).

The “ Organisation Study” at KAMCO, Athani was undertaken with the

objective of developing an insight about administration and management of a business firm

.The study at KAMCO helped the trainee to gain good knowledge about the operation of a

business firm the trainee left that the study was successful and a memorable one.

59