You are on page 1of 50

[1

]


AN ORGANIZATIONAL STUDY OF
M/s FORTUNE ELASTOMERS
PVT LTD


Organization study report submitted in partial fulfillment of the requirements for the MBA (full time)
Degree of the Kerala University Fisheries and Ocean Studies




Submitted By

SHANUJ. A.V
SME -2012-21-32


MBA -2012





KERALA UNIVERSITY OF FISHERIES AND OCEAN STUDIES
Panangad, Kochi-682506






JUNE 2013
[2]


DECLARATION


I hereby declare that the organization study reportof M/s FORTUNE ELASTOMERS PVT LTD is a
record of bona-fide work done by me in M/s FORTUNE ELASTOMERS PVT.LTD during the period of one
month under the supervision of Mr. V. ABDUL RAZAK, chairman, VKC division 2 and Ms. SAHILA,Asst.
Manager HR &AdministrationofM/s FORTUNE ELASTOMERS PVT LTD and Prof Dr. AMBILI KUMAR,
School and management and entrepreneurship, Kerala University of Fisheries and Ocean Studies, and that no part
of this report has formed the basis for award of any degree, Diploma, Associate ship, Fellowship, or any other
similar title or recognition in any other institution





Place:PANANGAD SHANUJ. AV
Date: 07/06/2013






[3]

ACKNOWLEDGEMENT



I owe a great many thanks to a great many people who helped and supported me in conducting the
organization study at M/S FORTUNE ELASTOMERS PVT LTD.My deepest thanks to Prof.
Dr.Ambilikumar, faculty member,KUFOS for guiding me with attention and care.My deep sense
of gratitude to Limited.for his support and guidance.Also I extent my thanksto Mr. V ABDUL
RAZAK ,chairman, VKC division 2 and Ms.P Sahila,Asst.manager HR and administration,M/S
FORTUNE ELASTOMERS PVT LTDand appreciation to the helpful people in the company for
their support in doing the project.






SHANUJ AV

































[4]


Table of Contents

Sl.
No.
Title Page
1 Industrial Profile 4
2 Company Profile 13
3 Departmentation 20
4 Swot Analysis 45
5 Conclusion 48
6 Bibliography 49



















[5]

















List of Tables

Table
No.
Title of the Table Page No.
1 Global Footwear Consumption (2012) 8
2 Global Consumption Over 13 Years 8
3 Global Consumption per Capita Over 13
Years
9
4 Exporters OF Footwear 10









[6]


List Of Figures



Figure
No.
Title of Figure Page No.
1 Organisation Chart 21
2 Production Department 22
3 Packing Process 25
4 Marketing Department 26
5 Channel of Distribution 28
6 Finance Department 32
7 Human Resource Department 38
8 Recruitment Process 40

















[7]


















CHAPTER - I
INDUSTRY PROFILE























[8]


I NDUSTRY PROFI LE

Nowadays, footwear has become as absolute necessity rather than fashion for civilized
people. The demand for footwear is increasing day by day. Depending on the
purchasing power, different classes of people use different type and quality of footwear.
The middle and lower income groups prefer low cost, durable, wear and tear resistant
footwear, which can be used in all climatic conditions. VKC footwear emerges as the
obvious choices which satisfy all the above requirements. The increasing popularity of
VKC chapels in south India and other parts of country, is assuming good demand for the
product in future.

As a result of rapid economic development taking place in our country, increase in
population, increase in awareness of hygiene among the people and above all the
absolute and continuing necessity for footwear in general and VKCchappals is bound to
increase considerably. VKCchappals is an economic substitute for leather footwear the
people in rural and urban area use VKCchappals throughout the year, since it is suitable
in any type of terrain and weather conditions.

Manufacture of VKC footwear was taken up in 1984 August 17 and it gained momentum
in 1984. Initially plant and moulds were being imported, generally of multi-station type.
1989 the production increased to 5000 pair’s aday.By 1996 it jumped to 17000pairs.
Although the capacity creation was restricted due to shortage of raw materials, additional
capacity continuous to be created to with indigenously available two station machinery
and moulds. The capacity at present is estimated at over 100 million pairs per annum.

Full VKC footwear (chapels, sandals and shoes) are popular in Indian market due to its
cheapness, durability and easy maintenance and common man can afford to buy. Raw
materials that are VKCcan again be used for making cheaper type of footwear.

[9]


HISTORY OF FOOTWEAR
There are evidences which show that the history of the shoe starts in 10,000 BC, that is,
at the end of the Paleolithic period (paintings of this time in caves in Spain and in the
south of France make reference to the footwear). Among the utensils of rock of the men
of the caverns there are several that were used to scrape the skins, which indicate that the
art of tanning is very old. In the Egyptian hypogeum (underground chambers used to
multiple funerals), whose age is between 6 and 7 thousand years, paintings were
discovered representing the various stages of the preparation of the leather and the
footwear. In cold countries the moccasin is the protector of the feet and in hotter
countries the sandal is still the most used. The Egyptian’s sandals were made of straw,
papyrus or of palm fiber.

It’s known that only the noblemen of that time owned sandals. Even a Pharaoh as
Tutancamon paved footwear as sandals and simple leather shoes (despite the ornaments
of gold). In Mesopotamia it was common raw leather shoes tied to the feet by straps of
the same material. The boots were symbol of high social status.
The Greek introduced new fashion as different models for right and left feet. In Rome the
footwear indicated the social class. The consuls wore white shoes, the senators wore
brown shoes moored by four leather tapes tied with two knots and the traditional
footwear of the legions was the short boot that uncovered the toes.

In the middle age, men as well as women wore leather shoes whose form was similar to
the ballet slipper. Men also wore high and short boots tied in the front and in the side.
The most current material was the cow skin, but the upper quality boots were made of
goat skin.

The standardization of the numeration is of English origin. The king Edward (1272-
1307) was the first to uniform the measures. The first reference known of the
[10]

manufacture of footwear in England is of 1642 when Thomas Pendleton provided 4,000
pairs of shoes and 600 pairs of boots to the army. The military campaigns of this time
initiated a substantial demand for boots and shoes. In the middle of the 19th century the
machines that helped in the confection of the footwear began to appear, but only with the
sewing machine the shoe started to be more accessible. From the fourth decade of the
20th century on, big changes in the footwear industries began to happen as the change of
the leather by the rubber and synthetic materials. Mainly in the female and infantile
footwear. Probably the Pendleton’s employees made the shoes from the beginning to the
end.

STRUCTURE OF WORLD FOOTWEAR INDUSTRY



Global Consumption

It is axiomatic to say globally, the footwear industry has an expanding market. World
population increases, living standards rise, so does the demand for footwear. The
following charts published by SATRA (Shoe and Allied Trades Research Association,
UK) show the trends. The largest market for footwear in terms of pairs is Asia including
the Indian sub continent. The figures for global footwear consumption (2012) and
forecast to 2008 are as follows:
GLOBAL FOOTWEAR CONSUMPTION (2012)

Region Millions of pairs Total
China 2,768 22.2%
Asia 2706 21.7%
Europe 2544 20.4%
N&S America 2381 19.1%
Africa 1172 9.4%
S.America 898 7.2%
Total 12469 100%
Table No. 1
[11]





GLOBAL CONSUMPTION OVER 13 YEARS

CONSUMPTION
(Millions of Pairs)
2003 2004 2005 2006 2007

ASIA
4,744 5,222 5,474 5,840 6,528
AMERICA 3011 3274 3279 3433 3611
EUROPE 2239 2396 2544 2717 2886
REST OF WORLD 1086 1187 1172 1317 1399
TOTAL 11080 12079 12469 13307 14424
Table No.2



GLOBAL CONSUMPTION PER CAPITA OVER 13 YEARS

CONSUMPTION
(Millions of Pairs)
2008 2009 2010 2011 2012
ASIA 4,744 5,222 5,474 5,840 6,528
AMERICA 3011 3274 3279 3433 3611
EUROPE 2239 2396 2544 2717 2886
REST OF WORLD 1086 1187 1172 1317 1399
TOTAL 11080 12079 12469 13307 14424
Table No. 3





[12]

In the year 2012 the following was the market in financial terms for exporters of
footwear, i.e. the major importing areas
EXPORTERS OF FOOTWEAR (2012)

Region US$ 000 % OF WORLD
China 23,362,091 50.15
Asia 15,718,585 33.74
Europe 4,256,841 9.14
N&S America 1,022,423 2.19
Africa 903,873 1.94
S.America 689,675 1.48
Australia 629,106 1.35
Total 46,582,594 100.00
Table No. 4




The market in monetary terms shows a different picture with Asia laying a poor third
behind Europe and North America, reflecting the degree of sophistication in each market.
China produces and exports more shoes than any other country by far. It is also the
biggest consumer of footwear by virtue of the size of its population. On the other hand its
per capita consumption is low – on a par with developing countries. A further
breakdown of the major consuming countries and areas is as follows:


[13]


INDIAN FOOTWEAR INDUSTRY
The footwear sector is a very significant segment of the leather industry in India; rather it
is the engine of growth for the entire Indian leather industry. India is the second largest
global producer of footwear after China, accounting for 13% of global footwear
production of 16 billion pairs. India produces 2065 million pairs of different categories
of footwear (leather footwear - 909 million pairs, leather shoe uppers - 100 million pairs
and non-leather footwear - 1056 million pairs). India exports about 115 million pairs.
Thus, nearly 95% of its production goes to meet its own domestic demand.
The major production centers in India are Chennai, Ranipet, and Amber in Tamil Nadu,
Mumbai in Maharashtra, Kanpur in U.P., Jalandhar in Punjab, Agra, Delhi, Karnal,
Ludhiana, Sonepat, Faridabad, Pune, Kolkata, Calicut and Ernakulum. About 1.10
million are engaged in the footwear manufacturing industry.
Footwear exported from India are Dress Shoes, Casuals, Moccasins, Sport Shoes,
Horrachies, Sandals, Ballerinas, Boots, Sandals and Chappals made of rubber, plastic,
P.V.C. and other materials. US Retail giant Wal-Mart has also begun sourcing footwear
from India since the last two years.Indian leather industry is the core strength of the
Indian footwear industry. It is the engine of growth for the entire Indian leather industry
and India is the second largest global producer of footwear after China. Reputed global
brands like Florham, Nunn Bush, Stacy Adams, Gabor, Clarks, Nike, Reebok, Ecco,
Deichmann, Elefanten, St Michaels, Hasley, Salamander and Colehaan are manufactured
under license in India. Besides, many global retail chains seeking quality products at
competitive prices are actively sourcing footwear from India. While leather shoes and
uppers are produced in medium to large-scale units, the sandals and chappals are
produced in the household and cottage sector. The industry is poised for adopting the
modern and state-of-the-art technology to suit the exacting international requirements
and standards. India produces more of gent’s footwear while the world’s major
production is in ladies footwear. In the case of chapels and sandals, use of non-leather
material is prevalent in the domestic market. Leather footwear exported from India are
dress shoes, casuals, moccasins, sport shoes, hierarchies, sandals, ballerinas, boots. Non-
[14]

leather footwear exported from India is Shoes, Sandals and Chappals made of rubber,
plastic, P.V.C. and other materials. With changing lifestyles and increasing affluence,
domestic demand for footwear is projected to grow at a faster rate than has been seen.
There are already many new domestic brands of footwear and many foreign brands such
as Nike, Adidas, Puma, Woodland, Reebok, Florham, Rockport, etc. have also been able
to enter the market.
The footwear sector has matured from the level of manual footwear manufacturing
methods to automated footwear manufacturing systems. Many units are equipped with
In-house Design Studios incorporating state-of-the-art CAD systems having 3D Shoe
Design packages that are intuitive and easy to use. Many Indian footwear factories have
also acquired the ISO 9000, ISO 14000 as well as the SA 8000 certifications. Excellent
facilities for Physical and Chemical testing exist with the laboratories having tie-ups with
leading international agencies like SATRA, UK and PFI, Germany.
CURRENT SCENARIO

Kerala Industrial Infrastructure Development Corp (Kinfra) said it will set up a state-of-
the-art footwear park in Malappuram district in north Kerala.The park will come up on
120 acres in Vazhakkad, Malappuram.“The park would be ready in two years and would
have facilities for manufacturing footwear and raw materials needed for the industry”.
The park would emerge as a big support for around 200 footwear manufacturing units in
north Kerala.The project is expected to cost Rs.17.5 crore excluding the land cost. In
Kinfra’s assessment, footwear units in the state were able to exploit only half of the
Rs.600-crore footwear market. “The thrust areas of the park would be non-leather
footwear, footwear component manufacture, leather footwear, safety footwear and
sportsmen’s footwear”. Kendra’s aim is to promote use of new technology in footwear
sector and generate employment.The project is expected to provide direct employment to
3,250 people and indirect employment to 6,500.Cloth and leather-based industrial units
will also start operations from the park.

[15]








CHAPTER – II
COMPANY PROFILE









[16]

Company profile
HISTORY OF COMPANY
COMPANY “VKC group of companies are the leading footwear
manufacture especially in southern region of India. The group established on (August17)
1984 with a nominal capital and few employees. In 1984 the founder of the group Mr.
V.K.C. Mammed Koya started a Hawai Sheet manufacturing unit with his two brothers.
Later on Hawai straps were also inducted to the production line and in 1986 VKC group
launched the first product with its own brand name in the market viz. VKC Hawai with
an initial production of 600 pairs per day. By 1989 the production increased to 5000 pairs
a day and by 1996 it jumped to 17000 pairs.

In between the founder initiated the floating of the first RPVC (Rigid Polyvinyl
Chloride) footwear manufacturing unit in the Malabar Area of Kerala state with few of
his friends. This product also got very good acceptance in the market. This resulted in a
rapid change in the footwear industry itself. Within a few years the number of Rubber
and RPVC unit grew to more than 80 in this area.

In 1994 the group ventured the first unit in Kerala to manufacture footwear from virgin
PVC. This resulted in a drastic change and the multinational brands confronted
competitions from the local brands. In 1998 the group started the first Micro Cellular
PVC footwear in Kerala with the help of imported plant and machinery. “Quality at low
price” made the VKC groups products popular in the market day by day.
In 2001 the group started the first Air Injected PVC DIP footwear manufacturing unit in
the South India. In 2003 the group missioned the first Injected EVA manufacturing unit
in South –Central India. In 2006 the group started backward integration to produce EVA
[17]

compound for Injection and started the first EVA compounding plant in the South –
Central India.
During this period new bloods with technical, commercial and practical knowledge were
inducted and now the group consists of 25 working Directors and 100 share holders
spread over 16 various units. And have annual group turnover of Rs.4000 million. More
than 4000 employees are working in these units.
The company had achieved a prominent position in the footwear market of India. The
main markets, which is been focused by the company are Kerala, Tamilnadu Karnataka,
Madhya Pradesh, Gujarat, Andhra Pradesh. It has now expanded its market in countries
such as Saudi Arabia, Dubai, Kuwait, Oman, Bahrain and Qatar.
The good quality and variety in models of VKC products help the companies to face the
market competition positively. The company has been able to maintain the quality of the
products by adopting foreign technologies. The group is now looking for further avenues
in the field of footwear to stretch their hands.

All affairs and day-to-day business administration of the firm is vested in the hands of
Board of Directors. They are in charge of various functions pertaining to Finance,
Production, and HR, Marketing, Administration and Materials departments. The board is
assisted by well qualified staff members. Each department has functional heads, senior
and junior executive in order to support and help functional heads.
The Chairman of the firm was awarded with Best Entrepreneur of Kozhikode district by
Kerala State Small industries Association for the year 2005-2006.
M/s. Fortune Elastomers Pvt. Ltd caters to extend its markets of Kerala, Karnataka,
Tamilnadu, Andra Pradesh and certain countries outside India. M/s. Fortune Elastomers
exports the footwear’s to countries such as Saudi Arabia, Dubai, Kuwait, Oman, Bahrain
and Qatar. Exports have shown a steady growth over the years. The products have a high
brand value in the minds of the people of Kerala because of the quality and the
affordable price of the product. The management gives high priority to the quality of the
product. The company assures the quality of the product through the continuous quality
checking in each and every stages of the production process. The quality of the VKC
products is unrivalled in the market. The Footwear’s introduced by the company has
[18]

been growing and evolving with the changing trends over the year. In recent years the
customers prefers the DIP Footwear’s than any other Footwear.
As we are manufacturers of footwear, we focus mainly on production process of the
organization. The function of the production department is to produce our products on
time, to the required quality levels, at the defined product cost. The main advantage of
the company is the implementation of Taiwan technology for the injection molding
process. We have both automated and manual machines for production of footwear’s.
The quality of the imported Synthetic leather, imported by us helps from the problem of
smelling due to sweatiness and wetness, which is seen in ordinary leathers. The finish,
comfort, and elegances are highly superior when compared to the ordinary leather. The
production process is line production process whereby materials are put through a
refining process to produce end-product through sequential operations. Of major concern
to the production manager is monthly output. Production managers have monthly targets
which they are expected to strive to meet or exceed. The total production estimated for a
year is 51.6lakes.

The production department of M/s. Fortune Elastomers Pvt. Ltd comprises of well
experienced staff members starting from functional head, department head, coordinator,
supervisors, shift engineers, machine operators, pouring men and workers. Production
department also aims at maintaining the quality of products been produced. Every
employee is expected to take responsibility for managing quality issues in order to make
sure that waste is minimised and quality maximised. Quality checking and assurance is
carried out every day on a number of occasions to ensure that the production process is
working efficiently and effectively.

We use different machines to produce footwear’s. The company purchases footwear
moulds from Taiwan, China, and Italy. This will help the company to assure high quality
finished product.
Most of our machines are imported from abroad. It includes high speed mixer machine,
fully automatic air injection molding machine, air drier & chiller, cooling tower,
[19]

cementing machine, box strapping machine, clicker machine, generator conveyor,
stitching machine. M/s. Fortune Elastomers PVT. LTD. has succeeded in withstanding
stiff competition from the parallel manufactures because of the superior quality of the
products at reasonable price.
Other than production and quality checking, production department performs one more
function. That is packing of finished products into cartons. A set of workers are assigned
to pack finished products into specified cartons or boxes according to their name and
size. Before packing quality is again checked by the workers. After packing all these
cartons are sent to stock room for storing so that it can be sent to dealers directly
according to the order placed.


COMPANY VISION
 To provide quality products to the customer at an affordable price.
 Provide high quality product and service create a new landmark of the footwear
industry.
 To become the best valid company in the footwear industry.
 The company put emphasis on environment protection, labour security, and human right
and provides pleasant working condition for our people.



COMPANY MISSION
To meet the market demand and to achieve a prominent position in the Footwear
industry.

MOTTO
Quality products at Affordable Price”

“BRAND AMBASSADOR-MEERA JASMINE





[20]





COMPANY POLICY
 Implement programs of continued education and specialized training in footwear
component technology, commerce and management issues.
 Promote a healthy growth of the footwear component industry and its export.
 Organize technical and laboratory assistants for members to attain highest levels of
quality.
 Promote goodwill amongst component manufactures.
 Promote interaction among members for development of products of better quality.
 Technical and laboratory assistants for members to attain highest levels of quality.
 Promote goodwill amongst component manufactures.
 Promote interaction among members for development of products of better quality.
[21]

THE HEAD QUARTER OF VKC GROUP IS IN CALICUT AND THE PLANTS
OF VKC GROUP OF COMPANIES ARE SITUATED IN KERALA,
TAMILNADU, ANDRA PRADESH AND GUJARAT. THE FOLLOWING ARE
THE ASSOCIATE COMPANIES OF VKC GROUP.

1. M/s. VEEKESY RUBBER INDUSTRIES PVT.LTD.
2. M/s. VEEKESY ELASTOMERS PVT.LTD.
3. M/s. VEEKESY POLYMERS PVT.LTD.
4. M/s. SANDLON TECHNOLOGIES PVT.LTD.
5. M/s. FORTUNE ELASTOMERS PVT.LTD.
6. M/s. CALTECH POLYMERS PVT.LTD.
7. M/s. SLIPONS INDIA PVT.LTD
8. M/s. DIADORA SHOES PVTLTD.
9. M/s. DIMESCO FOOTCARE INDIA PVT LTD.
10. M/s. FERRARI SHOES (INDIA) PVT.LTD
11. M/s. VEEKESY FOOTCARE (INDIA) PVT. LTD
12. M/s. FERRERO VINYL TECHNOLOGIES PVT.LTD
13. M/s. MORBIDO VINYL PVT.LTD.
14. M/s. SMARTAK FOOTCARE PVT. LTD.
15. M/s. VKC FOOTSTEPS INDIA PVT.LTD
16. VKC FOOTPRINTS GLOBAL PVT LTD
17. VKC FOOTWEAR INTERNATIONAL PVT LTD
18. M/s VEEKESY SANDALS INDIA PVT LTD








[22]












CHAPTER- III
DEPARTMENTATION












[23]


DEPARTMENTATI ON

ORGANISATIONAL CHART






































Figure No.1

CHAIRMAN
DIRECTORS
MANAGER
(ADMINISTRATION)
ASSISTANT MANAGER
PRODUCTION FINANCE
DEPARTMENT HEAD
PRODUCTION HEAD
EXECUTIVE
SUPERVISOR
COORDINATOR
SHIFT ENGINEERS
SKILLED WORKERS
UNSKILLEDWORKERS
JUNIOR EXECUTIVE
SALES
DEPARTMENT HEAD
EXECUTIVE
JUNIOR EXECUTIVE
MATERIALS
DEPARTMENT HEAD
EXECUTIVE
JUNIOR
EXECUTIVE
JUNIOR EXECUTIVE
EXECUTIVE
DEPARTMENT HEAD
PERSONNEL
[24]


PRODUCTION DEPARTMENT
























Figure No.2



“Production is the making of goods for sale or the rendering of paid services.The making
of goods, however, must not be interrupted tooliterally to mean the creation of some
material object; we do not so much make things as make them more serviceable. We
create, not material object, but utility.”





Shift engineer
Coordinator
Supervisor
Skilled
Workers&
unskilled
workers
Production
head
[25]



MATERIALS DEPARTMENT
Materials department of the organization place order according to need of material that’s
used for production. Supervisor’s and production in charge gives details of materials
needed for production and accordingly materials are purchased by placing order through
e-mail.

The main raw material used for the production of VKC pride and VKC style as given below.
PU
 POLYON
 PU ADDITIVE
 COLOURING AGENT
PVC
 PVC RESIGN
 DOP
 NROX
 FYNOLGON
 BLOWING AGENT
 SYEARIC ACIDS
 PVCCOMPUND
 MASTER BATH
 SILICA
 SHUESHNER
 BEAROSTEACH
 MEK
MACHINERY USED is:
 High Speed Mixer Machine
 Fully Automatic Air Injection Moulding Machine
 Air Drier & Chiller
 Cooling Tower
[26]

 Cementing Machine
 Box Strapping Machine
 Clicker Machine
 Generator
 Conveyor
 Stitching



MANUFACTURING PROCESS

The production department functions directly under the production manager. The machinery used in
the manufacturing process is:

 PU Pouring machine
 Clicking machine
 Stitching machine
 Cooling tower
 Air drier
 Cementing machine
 Embossing machine
 Stitching Machine
 Generator
 Mould& Dies


At first stage of production process the raw materials are fed into the high-speed mixture,
where in it is pre-heated for accelerating the injection process.
After heating in the high speed mixture, the materials are moved or transferred into
horizontal molding machine or to the rotary injection machine. Horizontal molding
[27]

machine is that which is used to produce one pair at a time. Usually, ladies footwear is
produced using horizontal molding machine, which is a compact one.
Rotary injection molding machine is used, where the production is carried not on
compact materials.



PACKI NG PROCESS


































Figure No.3
Trimming Process
Conveyer System
Box strapping
Final check-up in Pairs, Art no.,
Size & Price
Tag Fitting
Packing into small carton
Fixing size & price sticker in
small carton
Packing into Master carton
[28]



[29]

MARKETING DEPARTMENT

















Figure No.4



Marketing is the management process responsible for the identifying, anticipating and
satisfying consumers’ requirements profitably”. To be the best product in the market
company is giving importance to the following:

Brand Name

The brand name used for the product is “VKC”

Motto

Quality at Low Price

Quality

Quality of the products is the main marketing technique that the company used.

Advertising

The Company treats the advertising as the main mode of marketing to improve the sales
of their products.



Executive

Junior executive
Department
head
[30]



Schemes

One of the main marketing techniques of the company is the different schemes for
theircustomersand dealers.

a) Wholesalers Meet
The company conducts the Wholesalers Meet at least once in a year. By this
the company provides an opportunity to the wholesalers to interact with the
company and between the dealers. This helps to find problems, sort-out differences, and
to formulate plans for future improvement in the market.

b) Order Taking & Collection
The company executives are directly taking the orders from the wholesalers.

c) Delivery System
The Company has very good system for the supply of t he pr oduct s t o t he
whol es al er s . The compa ny had pr ovi ded t he door del i ver y system and
they are fixed a weekly chart for the supply.

MAIN FUNCTIONS OF MARKETING MANAGER

 Sales operation
 Inventory management
 Production forecasts
 Control of sales
 Evaluating the Marketing Pulse
 Tailoring Promotion plans and activities
 Monitoring delivery performance of distributors


[31]

MARKETING TECHNIQUES

The Marketing Techniques used the company are:
 Channels Of Distribution
 Sales Promotion
 Advertising
 Market Research

Channels of Distribution: Channel of distribution is the set of marketing
intermediaries through which the goods flow from the producer toconsumer.The
company had provided the door delivery system to the wholesalers for the
distribution of products through their owned vehicles and through the different
transporters.

The Channel of Distribution followed by the Company is:


















Figure No.5



The company adopts a two level distribution system consisting of a Wholesale dealer and
a Retail dealer. The company is satisfied with the existing arrangements.
Manufacture
Wholesaler
Retailers
Consumers
[32]


Sales Promotion: Sales promotion plays a major role for the success of the products. Sales
promotion influences the customers for buying the products and also helps to
meetcompetition.It popularizes the product so as to stimulate demand. Sales promotion
tools used are
o Consumers Promotion
- Coupons
- Demonstration
- Contest
- Price offer
o Dealer Promotion
- Sales contest
- Dealer gift
- Turnover allowance

Advertising &Schemes: The Advertising covers all activities connected with
giving of publicity regarding goods and services offered for sale. The main Medias for
advertising are: Indoor Media & Outdoor Media.

 Indoor Media
- TV channels
- News papers
- Magazines
- Catalogues, danglers, calendars, & stickers
 Outdoor Media
- Name boards & a boards
- Hoardings

The company is providing different schemes for customers, retailers and
wholesalers during seasons. This helps the company to gets the good results in sales and
publicity.
[33]


Market Research: Marketing research helps in analyzing the buyer’s habits, popularity of a
product, and ef f ect i veness of adver t i s i ng medi a. I t al s o hel ps t o
col l ect i nf or mat i on about marketing problems and opportunities.
Thecontinuous marketing research has been conducted by the company which
helps them in planning and executing marketing strategies for the future course of action


THE PILLARS IN THE PATH OF SUCCESS OF THE FIRM

1. Foreign Technologies:

The main advantage of the company is the implementation of Taiwan technology used
by them for the injection moulding process. Moulding process is the main
activity and the key process of manufacturing of quality footwear. The Company
purchases Footwear Moulds from Taiwan, China, and Italy. This will help the company
to assure high quality and good finish to the product. The quality of the imported
Synthetic leather is highly superior to the Indian products. The problem of ordinary
synthetic leathers like smelling due to sweatiness and wet nes s i s not s een i n t he
i mpor t ed pr oduct s . The f i ni sh, comf or t , and el egances ar e highly
superior to the Indian product.



2. Employees of the Firm:

The company always maintains good employer - employee relationship. The
employees are well satisfied with the attitude of the management towards them and in the
f aci l i t i es pr ovi ded t o t hem. So t her e wer e no l abour s t r i kes , l abour
abs ent eei s m andlabourresignation. The company provides excellent training
programs for the employees to improve the skills and productivity with in a lesser
time. The employees are getting the statutory benefits like Bonus, ESI scheme,
Employees Provident Fund, Festival Holiday Allowances from the company

[34]

3. Quality of the Product:

Qual i t y can be vi ewed as a weapon f or compet i t i ve advant age, as a
means of profitability and a source of value for customers, investment in quality
achieves desired business results. Quality derives the productivity machine and leads the
firm toprosperity.Even though operators have a special responsibility to produce quality
products for the customers, this requires the combined effort and cooperation of the
entire organization. Quality Management of Caltech involves quality planning, quality
control and quality improvement is cross function in nature. The company has to face
keen competition in the market since there are numbers of footwear’s manufactures in
the country. The main factor, which determines sales, is the quality of the products. The
company produces good quality products and hence they are capable of competing with
others. M/s. Fortune Elastomers Pvt. Ltd. has succeeded in withstanding stiff
competition from the parallel manufactures because of the superior quality of
their products at reasonable price.


4. Advertising & Marketing:

The advertisement of product is of news of information concerning an i deas ,
s er vi ces or pr oduct s t o i nduce act i on whi ch i s s ui t abl e wi t h t he
i nt ent of t he advertiser. The advertisement given is based on the new trends in the
market and which are highly attractive by the customer. “Marketing is the process of
providing the right product of the right quality in the right quantity in the right place at
the right time”.Fortuneis a right product with a right quality and t he
management tries to supply the required quantity in the right place at the right time.
This helps fortune to bethe one of the best product in the market. Mar ket i ng pl ays a
vi t al r ol e f or t he s ucces s of our products in the market. The adequate
production, supply, good quality, affordable price of the product, and the various
marketing techniques used by the company which helps its products to be a
superior one in the market that satisfies the customer.


[35]


FINANCE DEPARTMENT




















Figure No.6


Financial management is responsible for estimation of financial resources. Financial is
lifeblood of every business. Therefore it is most important and complicated for business.

Finance department in Fortune Elastomerspvt is needed by finance manager and under
him accountant and assistant accountant.

OBJECTIVES OF FINANCIAL DEPARTMENT

For every business, finance is considered as the back bone of its functioning. The
success of a concern is measured in terms of the finance position. Finance is one of the
basic foundations of all economic activities concerned with the acquisition and utilization
of capital funds and assets and overall objectives of business concern.

VKC has very strong financial department. This is concerned with the proper utilization
of the financial resources of the company. The finance controller is the head of the
Executive

Department
head


Finance
Department
Junior
executive
[36]

department and has two finance managers. The decisions and policies taken by the
council will be passed by the finance controller through the finance manager to the
manager of each section. Finance department is concerned with the planning and
controlling of the firm’s financial resources.

 Preparation of corporate plans, annual plans and budgets.
 Financial planning cost control and ensuring uniform and correct observance of financial
disciplines of the company.
 Monitoring the progress of budget achievements.
 Providing accounting to all levels, ensuring updating systems procedure for the same.
 Evolve an audit manual.

DUTIES OF FINANCE MANAGER

 To inspect the accounts of the company.
 To monitor all the financial transactions of the company.
 To arrange the reconciliation of the book of accounts of the company with the book of
accounts of the company.

REGISTERS AND BOOKS OF ACCOUNTS

The managers should keep proper books of accounts, registers and other documents. He
should maintain proper and accurate records of accounts of working of the company.
Copies of the balance sheet shall supply free on demand of any members.
The books generally kept in finance department are
1. Cash book
2. General Ledger
3. Bank Book
4. Sales Journal
5. Purchase Journal

[37]

Cash book: The Company maintains a cash book in which all cash transaction are
recorded. The purpose of cash book is to keep a daily record of all transactions relating
to receipt and payments. When cash is received it is debited with the amount and paid is
entered on credit side of the cash book. The cash book is balanced on end of each month
and balance is cash in hand of the month

General ledger: The general ledger is a collection of the group of accounts that supports
the value items shown in the major financial statements. It is built up by posting
transactions recorded in the sales daybook, purchases daybook, cash book and general
journals daybook. The general ledger can be supported by one or more subsidiary ledgers
that provide details for accounts in the general ledger. The general ledger account is
maintained to record all the transactions. It contains more than 100 ledgers. Entries
from daybook and directly posted to the general ledger. It is balanced at the end of the
financial year.

Bank book: A passbook or bankbook is a paper book used to record bank transactions
on a deposit account

Sales journal: A sales journal is a specialized accounting journal used in an accounting
system to keep track of the sales of items that customers have purchased by changing
them to their accounts-receivable account.

Purchase journal: Purchases Journals record transactions that involve purchases on
credit. Source documents here would probably be invoices. The purchase of inventory on
credit is recorded in the purchases journal.


[38]

FUNCTIONS OF FINANCE DEPARTMENT IN VKC
1. Finalization of accounts
2. Preparation of wage sheets
3. Maintain cost records
4. Budget making and set target to be achieved
5. Set out the financial requirements, loans, income expenditure etc.
6. To ensure prompt payment of the supplier of materials, equipments, machinery etc.
7. To make all statutory payments like income tax, ESI, sales tax, provident fund etc.
8. To collect all income due to the company at the right time.
9. To record all transactions in the books of accounts to make periodic statements such as
trial balance, profit and loss account and balance sheet.
10. To prepare financial budget and check the expenditure as per the budgeted amount.
11. To make proper cash balancing and to prepare cash flow and fund flow statements.
12. To conduct various audit like statutory audit, internal audit, management audit, cost
audit, external audit etc.


 FINANCIAL DEPARTMENT OF FORTUNE ELASTOMERS PVT. LTD. CONSISTS
OF FOLLOWING SECTIONS

 Bill section
 Final account section
 Stores account section
 Budget account section
 Salary and wages section
 Cast section
 Sales section
 Time office section
 Computer section
:

[39]


ACCOUNTING POLICIES OF VKC

1. Investments:

2. Sales:

3. Fixed Assets: Fixed assets are stated at the cost of acquisition or construction, less
depreciation.

4. Inventories: Raw materials, materials in process and stores are valued at cost on
weighted average method and finished goods are valued at cost.

5. Depreciation: Written down depreciation method is followed.

6. Scrap: Accounting for scrap is done at the time of sales.


DIVIDEND POLICY

The term dividend refers to that part of profit of a company which is distributed among
the shareholders. It is the return to the shareholders for investment made by them in the
shares of company M/s FORTUNE ELASTOMERS PVT. LTD. provides a dividend on
equity shares to its shareholders.








[40]

HUMAN RESOURCE DEPARTMENT

















Figure No.7

Personnel management is concerned with people at work and its aim is to develop good
relationship between management and employee. Personnel management is that part of
total management of an organization, which specially deals with human resources in
respect of
a) Their procurement.
b) Their development.
c) Their motivation, towards the attainment of organizational objectives.
Edwin.flippo “ The personnel function is concerned with the procurement, development,
compensation, integration and maintenance of the personnel of an organization for the
purpose of contributing towards accomplishment of the organization’s major goals”








Junior executive

Executive

Department
head
[41]


Human resource department in FORTUNE ELASTOMERS PVT LTD

M/s Fortune elastomers Pvt. Ltdhas an efficient personnel department which is
headed by managing director. The department performs the personnel and administrative
functions. It has a direct link with the employees and understands their needs and wants.

FUNCTIONS
 Identify human recourses requirements, job specifications, skill needs
 Recruitment and selection
 Training
 Provide sound program of salary and wage administration
 Allowance for the employees
 Provide and maintain safety measures
 Keep employment records
 Handle labor problems and employee disputes
 A personnel record sheet is prepared of very personnel

OBJECTIVES
 To provide leadership for management of industrial relations and employees welfare
functions of company.
 For evolving systems of promote attention and redressed of employees participation.
 To provide policies for maintenance of industrial peace and for workers motivation.
 Evolve and update practices for checking incoming and outgoing of materials and
persons.
 Administrating the different committees for employees’ participation.
 Implementing the standing orders pertaining in the company.



[42]

RECRUITMENT PROCESS

Recruitment of office staffs are conducted by the head office to all the unit and workers
are selected by the internal process.

RECRUITMENT PROCESS



























Figure No.8


RECRUITMENT NEED IDENTIFIED
HR PLAN
PERSON SPECIFICATION
JOB DESCRIPTION
DESIGN SELECTION
METHOD
SHORT LIST
MAKE JOB OFFER
SELECT
[43]



Selection

It is a process of choosing the right persons among the application. The various stages
involved in selection process are:

a) Scrutiny of application received
The applications are received for a particular post is categorized as:
 Applications having required educational qualification and experiences.
 Applications that do not have required qualification are rejected.

b) Preliminary interview
Usually, at this stage, unsuitable candidates are eliminated even though they have
required qualification.

c) Interview
Here, the basic idea is to find the overall suitability of the candidate for the job. It also
provides opportunity to give relevant information about the organization to the candidate.

d) Final selection
After the candidate has passed all the stages above mentioned, he has an appointment
offer letter. Usually, candidates are appointed for probationary period for few months
ranging from 3 months to 6 months. After successful completion of probationary period,
he is appointed for a permanent basis.


[44]

Training

Training means to give information or skill through instructions or practical. It is a
method for increasing the knowledge and skill of the people for a specific job. Training
is the art of increasing the knowledge and skills of employees for doing a particular job”.

The training methods used are:

1. On the job training

On The Job Training: This is a common used method for training the operative
personnel. The workers are trained under the same type of conditions they have to work
in future. On the job he can experience the conditions and requirements of actual work
situations.

REMUNERATION TO EMPLOYEES

The minority reward paid by the management to worker or an employee for the
performance of the assigned task is called “wages” or “salary”. Salary is the
remuneration paid to non-operative staff: salaries are paid on a monthly basis to office
staff, managers and Technical advisors etc. Wages is the remuneration paid to the
workers involved in production.

BONUS FOR EMPLOYEES

The word bonus denotes an incentive payment to the workers aimed at enhancing their
efficiency and loyalty to their organization.
PROMOTION

Promotion takes place when an employee moves to a higher than once formerly
occupied. Advancement within an organization is ordinarily labeled as promotion which
involves a change from one job to another that is better in terms, status and
responsibility. For every change for promotion, 3 persons are considers. Basic for
promotion in M/s FORTUNE ELASTOMERS PVT LTD are attendance, performance,
seniority.
[45]


TRANSFER

Transfer refers to shifting of a person from one job to another without reference to
change in responsibility or remuneration. In VKC, transfer is given for administrative
staff only.

PERFORMANCE APPRAISAL

It is a system evaluation of present capabilities of personnel, by its supervisors. It is the
process of estimating or judging value status of a person. The main objectives of
performance appraisal are:

 To provide systematic judgment to back up salary increments, transfer etc.
 Means of telling the employees how he is doing or performing his work and suggesting
the need changes in his behavior.
 It is based as a base for coaching and counseling the individual by his superior.
WORKING TIME
Gents
Office staff –09:00 – 7:00
Factory Workers - 8.00 – 4:00
Women
Office staff -9:00-5:30
Factory workers 8.30-5.30
VEHICLES
The security guards are in charge of incoming and outgoing vehicles. A separate sheet is
setup for keeping the vehicles.
SAFETY MEASURES
The safety measures used by the company to protect the workers from accidents are:
 Gloves
 Goggles
 apparent shoes
 Mask
[46]




















CHAPTER - I V

SWOTANALYSI S
[47]

SWOT ANALYSI S
The overall evaluation of the company’s strength, weakness, opportunity and threat is
called SWOT analysis. This type of analysis is designed to help identify several areas of
a business that may need improvement and other areas where the company may be able
to improve upon. SWOT is an acronym for; Strength, Weakness, Opportunities and
Threats. A company should consider this analysis to be one of the most important steps
to becoming one of the leading stores and schools of this nature in the area.

STRENGTHS

 VKC has good brand image in world market
 Company is using modern technology
 Location is another major competitive advantage
 The company is using high quality material for the production
 The price of the product is low comparatively to the competitors.
 The company has wide range of product line than the competitors.
 Qualified design term
 High capacity utilization
 Productivity of the plant
 Quality products at low price.
 VKC manufacture a wide variety of products.
 Well trained and disciplined employees
 Good support between employers and employees
 Strong quality control system
 A good support from the government
 The organization looks after the welfare measures of its employees.
WEAKNESS
 Lack of space management in the production centre
 Lack of trained employees


[48]


OPPURTUNITIES

 Support from government.
 Joint venture with other companies.
 Market in foreign countries.
 Development of dealer network.
 Proper marketing and strategic decisions will help the company’s promotion.
 Using sophisticated products can reduce cost of production.
 Use of advanced technology.

THREATS

 Stiff competition from traders and other similar organization.
 No proper utilization of available capacity.
 Inefficient productivity.
 The changes in the government policies affect the smooth functioning of the
organization.


















[49]

Conclusion


During the study period, major departments were covered. The various
departments of the organization are production, material management, human
resource, finance and sales. Various functions, scope, activities etc. of the
departments were covered. All the departments of the organization work
cooperatively and coordination is also good for the achievement of the
common goal of the business.





























[50]














Bibliography


Books

 Mr. ASWATHAPPA, Human Resource & Personnel Management
 Mr. MALHOTHRA, Marketing Research
 Mr. PHILIP KOTLEM, Marketing Management


Journals

 Company Manuals and Records


Websites

 www.veekesy.com
 www.leatherindia.org
 www.footwearhistory.com