INDUSTRY PROFILE

Agriculture in India is one of the most important sector of the economy .it is
the mean of livehood of almost two third of the workforce of the Indian farmers.
because of the mechnization the Indian agriculture marketing began to boom
mechanization become a necessity to enhance productivity and conversation of
energy required for various operations involved in crop production ,thranshing
,processing, transportation ,value ,added ,storage,etc .priorities of mechanism were
to be decided as per the actual requirement of various agro climate zone and
involves of land preparation equipments ,crop production equipment techniques for
cereal crops ,for cash ,for oil seeds and pulses and horti cultural crops etc .the
Indian agriculture was facing the problem of lack of mechanisation for agricultural
purposes which may increase the labour cost and high cost of production .
The agriculture industry is on the brink revolution that modernise the
entire food production in India is likely to double in the excellent export .prospect ion
competitive pricing of agriculture products and

standards that internationally

comparitable pricing of agriculture products and standards that are internationally

has created trades opportunities in the agro industry with a view to enhance the
place of agro machinery products the government has laid emphasis on providing
financial assistance to the farmers and other target group for assistance to the
farmers and other target group for purchases of different kinds of farms equipments
demonstration of new equipments among farmers for spread of new technology .also
in the operation ,maintaince ,repairs ,and management, of agricultural machinery
and quality improvement through testing and evolution etc,
Green Revolution refers to a series of research, development, and
technology transfer initiatives, occurring between 1943 and the late 1970s, that
increased industrialized agriculture production in India.The initiatives involved the
development of high-yielding varieties of cereal grains, expansion of irrigation
infrastructure, and distribution of hybridized seeds, synthetic fertilizers, and
pesticides to farmers.The term "Green Revolution" was first used in 1968 by former
USAID director William Gaud, who noted the spread of the new technologies The
green evolution leads to a big boom in the Indian agro machinery industry. Therefore
knowing this change, some of the Indian companies have done their diversification

program for production agro machinery equipments. They also got good support
from government of India agricultetors since independence made rapid studies in
studies in taking the annual food gain production from 51 million tone of the early
fifties to 208 million tones to the early fifties to 206 million tones to the century, it
has constituted significantly India .The existing agricultural scenario presented a
dismal picture, tradinal farming methods ,low yielding and improvement are wholly
unsuited to large scale cultivation .the only solution lays in mechanized formatting
which could turn around the agriculture to a great extend. In order to achieve this
objective to be setup without resorting to import which undoubtedly posed a heavy
burden on the nations exchequer were hardly suited to the local conditions.

AGRO AND TRACTOR MACHINERY IN INDIA

Green revolution in caused a great increase in the production the of food
products and this leads to the mechanisation of agricultural sector world widely. This
resulted the country witnessed unprecedented growth in agriculture which helped
india to hunger to self sufficient were closed down or did not even start because
stability of indian farming conditions . poor after sales service network presently only
two manufactures are producing power tiller .since the phase of production was slow
the government of india continuous to allowed limited import tractors to meet the
demand of the farmers till 1974.while approving foreign collabration government of
india made it mandotary that tractors to be allowed for manutacturing in india shall
be tested under laboratry and filled conditions to ensure that they were sutiable for
indian farming condition .
The tractor in india were introduced through importation
,there were only 8635 imported tractors in use in 1951 ,the local tractor started in
1961-62 with 880 number .similarly the manufacturing of power tiller started in 1961
in Japan collaboration . at one time 12 models of power tiller were licenced to be
manufactured . however many of these units

COMPANY PROFILE
. The Kerala Agro Machinery Corporation Limited (KAMCO) was established
in the year 1973 as a wholly owned subsidiary of Kerala Agro Industries Corporation
Limited (KAIC), Trivandrum for manufacture of agriculture machinery, specifically
power tillers and diesel engines. Subsequently KAMCO became a separate
Government of Kerala undertaking in 1986.
Although KAMCO has four units functioning in the state at
athani, kalamassery, kanjikode, mala. This study pertains only to the unit at Athani
where the company is headquarter. The Athani unit handles all the corporate
functions of the company.
Milestone of the company
1) 1970-assembly unit was established at athani unit by m/s kerala agro Industries
Corporation for the assembly of kubto ltd, Japan.
2) 1973-kamco was established as wholly owned subsidy of kaic
3) 1986-kamco becomes a separate undertaking under government of kerala.
4) 1992-established second unit at kalamassery in ernakulam
5) 1995-witnessed the setting up of 3rd unit of kamco at kanjikode in palakkad the
manufacturing of power tiller
6) 1996-kamco won international quality excellence certification of iso 9002
7) 2000-latest additional unit was being stared in mala
8) 2002-kamco become an iso 9001-2000 registered company by KPMG quality
registration certified by Dutch council of certification
9) 2008-fourth unit at mala got iso 9002certifiaction

VISION STATEMENT
With 3 decades of engineering excellence stands as the no.1 tiller manufacture in
India .4 state of the art production plant and an innovation R&D and stronger quality
control system rated as one of the best in he country .the technically competent
dedicated management and workforce will go to ensure that kamco shall be leader
for several year to come.
KAMCO TODAY
Kamco is synonymous with services to the small and marginal farmers in the country
.kamco through their precision &quality is revolutionizing the small and marginal
holding throughout the country .kamco today having 50% of the market share at
national level and having 4 plants at athani, kalamassery, kanjikode and mala.
OWNERSHIP PATTERN
KAMCO become a separate government of kerala undertaken in 1986 with a paid up
capital of Rs.161 lakhs and present net worth of company is 6014.14 lakhs. Total
workforce of the company is 600.

Product include
1) KAMCO power tiller model kmb 200
2) KAMCO super di power tiller
3) KAMCO power reaper model kr 120
4) KAMCO stone cutter ksc 625
5) KAMCO agria 602 de power tiller

1) KAMCO power tiller model kmb

Item Code: 1300000
Details
Kamco power tiller model kmb 200 is manufacturing at athani and
palakad units. It is a versatile machine that has radically changed the old labour
intensive methods of agriculture, by making almost all farming operations faster,
cheaper and easier. Its performance over the years has gained it the reputation
of being a complete farming unit. The cost on Tiller is around Rs.110000. The
renowned Tiller comes to you with the following in built advantages.

Simple movements and control for ease of handling

Perfectly balanced and vibration- free engine to reduce operator

fatigue.

Fail safe safety devices to prevent accidents

Automatic fuel control to save precious energy

Distinctive radiator cooling system for continuous operations

It is faster

Make cleaner windrows for easier collection

Reduces loss during harvesting

Use
KAMCO Power Tiller is a versatile machine primarily used for preparation of land for
farming operations. With suitably designed accessories the machine can be used for
a large number of specific operations like tilling, ploughing, weeding, pumping,
puddling, leveling, hulling, ridging etc.
Specifications
Model

: Tiller KMB 200

Engine

ER 90

Type

Rotary, diesel-powered,water-cooled

HP

Continuous : 9

Max

12

RPM

2000

Fuel consumption

1.5 liters per hour

Fuel tank capacity

10.70 liters

No. of speeds

Forwards

Reverse

Tilling

Wheel track

Maximum: 930 mm

Minimum

690 mm

Tire size

6.00x12

Ground clearance

203 mm

Traveling speed

15 kmph (Max.)

Tilling width

600 mm

Tilling depth

190 mm

No. of blades

20

Tilling capacity

1 hectare/8hrs.

Overall dimensions

L2250 x W: 820 x H: 1030 mm

Weight

485 Kg

Light Unit

12 volts, 40 Watts

:6

2) kamco super di power tiller

ItemCode:1900000
Details:
Use
KAMCO ER90 Engine is equipped with Radiator and specially designed
diecast multi-blade axial fan. The engine can operate continuously for several
hours. It can be used as a prime mover either for stationery or for moving
applications. Kamco super direct injection combustion engine is the late stet
product, it creates an ideal mixture of fuel and air with the swirl type in left

port. The combustion chamber is placed in a cauity in the upper part of the
position itself to prevent heat loss and efficiency

Specifications
Type : Horizontal Water Cooled, 4 stroke
No of cyclinder: 1
Bore x stroke: 95 x105
Compression ratio continous rated :20
Output (hp/rpm): 12/2000
Specific fuel consumption (hp/hrs): 195
Maximum torque(kgm/rpm):4.5/2000
Cooling type: pressure

radiator type (0.8 kg/cm2 natural convection)

Fuel : high speed disel oil

Lubricating system: forced lubrication with trouchoid pump
Starting system : by hand cranking assisted by decompression system
Cooling water capacity (Ltr) :

3.8

Fuel tank capacity: 12

Crank case oil capacity(Ltr) : 3
Overall dimension (mm):820 x 512 x640 (L xWxH)
Weight :145 kg

3) Kamco power reaper

Item Code : 2100000

Details:
Power reaper is manufacture in Mala unit. Power reaper is ideally suited for
harvesting of reaps paddy, wheat and similar crops like barly etc. It harvests and
make windows at the rate 3-4 hrs/hectare. It prevents loss of grains while reaping. It
gathers sheaves into neat windrows. It can reap farmlands at walking pace. It can be
easily lifted and carried by two persons. The fuel used in power reaper is kerocene,
cot of operation is the lowest and it helps the farmer to harvest his field at the lowest
ever cost. The smooth chain conveyor action delivers plants gently, making clean
windrows.
Use
KAMCO Power Reaper is ideally suited for harvesting of paddy, wheat and similar
crops. It harvests and makes windrows at the rate of 3-4 hours per ha. Since the fuel
used is kerosene, cost of operation is the lowest and it helps the farmer to harvest
his field at the lowest ever cost.
Specifications
Model

KR 120

Overall length

2390 mm

Overall width

1470 mm

Height (Up to Handle)

900 mm

Weight

116 KG

Working Capacity

3 -4 hr/hectare (1.2-1.8 hrs/acre)

Applicable Plant Height

60-120 cm

Crop release

Right side of machine (viewed from rear)

Dimensions

engine type:cyclinder: strockside valve, Air cool

Fuel

Petrol Start, Kerosene run

Rated HP

3.5

Max. HP

3.85

R.P.M

3600

Specific Fuel Consumption

339 gm/H.P hr

Fuel Tank Capacity

Kerosene 4 Ltr, Petrol 0.4 liters

Air cleaner

Oil Bath Type

Starting

Recoil starting

Forward speed

59.0 m/min

Reverse

50 m/mi

Applicability

Dryfeld&Wetfield

Main Clutch

Dog Clutch

Harvesting Clutch

DogClutch

Cutting Device

Reciprocating Knife Bar

Cutting Height

Adjustable 10-30 Cm grounded level

Cutting width

120 cm

Travel

4) Kamco power stone cutter

Item Code :300000
Details
Use
a. Power stone cutter is a new innovative product mainly used for late
rife stone cutting .the machine found application at queries,
construction site etc.
b. carbide tipped cutting disc is employed to neatly cut 150-200 stone
piece per hour

Model

KR 130

Overall length

2390 mm

Overall width

1470 mm

Height (Up to Handle)

900 mm

Weight

116 KG

Working Capacity

3 -4 hr/hectare (1.2-1.8 hrs/acre)

Applicable Plant Height

60-120 cm

Crop release

Right side of machine (viewed from rear)

Single Cylinder, 4 stroke, side valve, Air cool

Dimensions

Engine
Type

Engine
Fuel

Petrol Start, Kerosene run

Rated HP

3.5

Max. HP

3.85

R.P.M

3600

Specific Fuel Consumption

339 gm/H.P hr

Fuel Tank Capacity

Kerosene 4 Ltr, Petrol 0.4 liters

Air cleaner

Oil Bath Type

Starting

Recoil starting

Forward speed

59.0 m/min

Reverse

50 m/mi

Applicability

cutting stones

Main Clutch

Dog Clutch

Harvesting Clutch

DogClutch

Cutting Device

Reciprocating long high power cutter

Cutting Height

Adjustable 10-30 Cm grounded level

Cutting width

120 cm

Travel

5) Kamco agria 602 de power tiller

Item Code: 6100000
Details:
Use

Ideal for paddy /wheat cultivation

Inter cultivation Applications

Various land preparations at horticultural farms

Landscaping

Gardening

Potato harvester

Specifications

330 mm to 1200 mm tilling width

Low maintenance

Highly fuel efficient

Easy controls and operations

2 speed pulley belt drive

Engine

Petrol

Displacement

149 Cc 2 Stroke Electronic

Clutch

Belt Stress

Speeds

2Forwad

Air Filter

Oil Bath

Handle Bar

Robust And Easily Adjustable Rotary

Tiller: Adjustable -33 Cms To 120 Cms

Engine Stop

By A Security System Acting Automatically

Transmission

By Gear and Chain in Oil Bath

ORGANISATIONAL STRUCTURE
A Board of Directors governs the company. Board of Directors
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 his powers subject to the
overall control and supervision of the board. The Managing Director is the topmost
official and the Government delegates authority to the Managing Director as may be
entrusted and delegated to him 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 discharging different functions. Managers and Deputy
Managers will assist the General Managers and Deputy General Managers.
The various departments of KAMCO are production, marketing, finance, material,
human resource, system, quality assurance. There are seven regional offices for
KAMCO at Trichy, Pondicherry, Kolkata, Guwahati, Hyderabad, Ranchi and
Bopal

Production Department
Various manufacturing process
The various manufacturing process are done three main sections in the
company, they are
1) Assembly shop
2) Machine shop
The major functions of the production department are machining,
assembling and maintenance. Mainly 13 components are machined in machine
shop.
Assembly is one of the major sections in production department. All
the parts are assembled in this department. A chief mechanic is present in this
section. The engine assembly is one of the major works in the assembly. After
testing the assembled engines, it is sent to the painting section. Through different
transmissions in the assembly we get the finished product. Assembly section mainly
consists of three areas.
Assembly section

Engine line

Transmission line

KMB line

Company has a modern machine shop with Special

Purpose Machines (SPM), which ensures conformity with prescribed quality
standards. The materials purchased by the Purchase Department, are then send to
the stores. From there the materials are forwarded to the Q.A. department. From Q.A
Department the materials are forwarded to the machine shop. In the machine shop,
the process like milling, drilling, boring etc are done. From the machine shop the
finished products are not directly send to the assembly. It is send to the assembly
only after the inspection in Q.A. department and is then kept in stores.

Production details
Production are done in step by step procedure in the organisation .various
steps are
TANK PRE-TREATMENT PROCESSES
Process 1: Degreasing
In this process the item or product that is to be cleaned is dipped in
the tank with chemical at 60-degree temperature for about 20-25 minutes.
Process 2: Water rinsing
Here the item is simply rinsed with water for about 2 minutes.
Process 3: Acid treatment
Again the item is dipped in a solution containing 35% HCL for about
20 minutes. This is mainly done to remove rust.
Process 4:

The component is again passed through two cold-water tanks and

rinsed.
Process 5: Phosphating
Again the item is dipped in a solution containing phosphate content
for about 45 minutes. After this process the surface of the component will be
completely cleaned.
Process 6: Water rinsing
The component is washed with water.
Process 7: Passivation
Here the component is dipped in a solution containing chromic acid
for about 20 minute

PAINTING
After cleaning the components it will go for painting through a
conveyer belt and after painting it will go to the oven through the belt. The painting
process is full automated and will done automatically through machine .the spray
painting method is used for painting process adopted with wet system and stowing
enamel paint is used .

Mainly they are using two colours for painting, one is Ash

and the other one is Post office Red.

Assembling
After painting is finished the material will go the assembly shop were all the
parts like machine, wiring, jointing of various body parts etc are taken over .this are
taken over in various work centres which are meant for each process specially
namely engine line, transmission line, tiller line etc. the parts from painting and
machine shop are gathered and assembled in the assembly shop by skilled workers
Product final inspection
After the assembling is over the tiller will go to the quality assurance
department for final inspection .they will check the tillers as per assembly quality
plans are satisfied tillers will go to the central store department where they are
stocked.

Maintaince procedure
The maintenance measure followed here is total preventive maintenance
(TPM) which is a Japanese concept. Under maintenance department there are two
types of maintenance rooms. They are civil maintenance and electrical maintenance.
Once in 90 days maintenance is done. Another major aspect of KAMCO is zero
down time that leads to continuous production. .To ensure continuous process
capacity of machine and equipments of machine and equipments company carry out
the method of preventive maintaince and break down maintaince

Preventive maintaince are taken up for electrical maintaince

section .the machine are taken up for preventive maintaince under the super vision
of in charge heads as per preventive maintaince instruction
Break down maintaince is in hated by the concerned department
indicating the location and nature of default and signed by the reporting officer .the
work is got done through mechanics and after completion of the work the operation
is

demonstrated

and

handed

over

to

the

concerned

department

on

acknowledgment .

Quality Assurance procedure

Company keep good quality in their all products with the help of quality
assurance department. For a company trying to more its presence felt in the
international marker through quality products and services, quality management
system should be at work. The company follows its 1SO 9001-2000 standards. It is
mainly for the quality.
Materials and the components from the vendor are received in the stores
department. And Accounts as inward receipts in the hands of stores (IGRR) This
IGRR NO: Delivery Chelan No: date, name of the vendor, quality grade of the vendor
etc. with this receipt the stores department handed over the components to the
quality assurance department. From here starts the function of Q.A department. In
Q.A department there is all specification of the components, to know these
components have all the specification that is needed for production.
Quality Assurance clarifies the components into two critical component and
non critical components. Critical components are crank shaft, all engine parts, gear
wheels etc. non critical components are nuts, bolts, and screws etc. The clarification
is mainly for ignoring the practical difficulty in checking. Complete inspection occurs
in critical components and only sample inspection in non critical components.
Practical difficulty in checking non critical components is the problem there from here
the production department as their requirements takes the components.

After getting a finished product from the assembly department for the final
checking. If it is OK it is gone to the store. From these the machine will enter into
marker through dealers.
Calibration cell:-Q.A departments are equipped with all modal facilities. The
company has a calibration cell to check and correct the measurements of all
measuring instruments.
Plant location
Company is located in kerala at ernakulam district in a place called athani will
30 kms from the city and is 10 kms away from Cochin international airport and 20
kms from Cochin port were the products of the company are exported through to
foreign countries.
Plant layout
The plant is having a 6 building were the various department like finance
department, system department, hr department ,marketing department

are

working .the plant is having a production department building .A bulling for stocking
of raw materials and final products . The company is keeping a place for display of
products at the side of the NH47

MARKETING DEPARTMENT
Marketing department ensures that there is a proper flow of goods
and services from the company (producers) to the consumers. The products of
KAMCO is sold through the dealers, so the marketing department has a direct
relationship with the dealers, the products are sold throughout the country through
the Agro Industries Corporation of that particular state, the states to which the
products are sold are Kerala, TamilNadu, Andhra Pradesh, Maharashtra, Gujarat,
Rajasthan, Pondicherry, Chattisgarh, Orissa, Bihar, West Bengal, Assam,
Meghalaya, Manipur, Tripura, Uttar Pradesh.
The marketing strategy followed by the department is

Fixation of targets for each dealers

.The marketing department has regular contacts with the dealers

of each state.

The dealers are selected based on the certain criteria, i.e., first
of all, the climatic condition of the state is taken into
consideration, availability of land, etc

The steps followed in the marketing department are

1. Agreement is made between Dealers and KAMCO and then a target is fixed
(annual) by KAMCO for the purpose of sales as well as spares.
2. Order is placed by the dealers along with DD or by bank, the dealings of
KAMCO is done through Union Bank of India.
3. The marketing department sends the dispatch advice to Athani or Palghat.
4. Then the goods are dispatched by the Stores Department.

Sales forecasting
Sales forecasting is done by the marketing department by
taking into consideration of various factors. The main factor of sales forecasting is
previous years sales and the demand for the product in the previous year. Demand
for the product is collected from the dealers and the various factors that may affect
the current the current year sales are collected by conducting market survey and this
are used for the sales forcasting .

Based on this a certain percentage of sales

forecasting is prepared. This is prepared and submitted to the board of directors for
final approval. In current year the sales forecasted is 7500 products. Different will
have different sales forecasting based on previous sales

Sales promotion techniques

In company sales promotion is done through various activitiestechniques
taken over in two ways. Techniques taken through

1)Customers
2)Dealers
Techniques through customers are

Free service campaigns:-company is giving its customers three free service

campaigns periodically .special officers are send to various parts with the request of
dealers and by giving advertisement in local news papers.

Demonstration: - company is taking participating in various demonstrations at the

important cities of various parts of the world with the consent of group of dealers of
that region and maintained through the dealers

Exhibition:- company will conduct exibition in institutions and other places.dealers

are in charge of the exibition and the money for that is re impresed by the company
when the bill of expense is given to the company

Subsidies ;- Company is also giving subsidies which are announced by state

governments periodically with companies procedures.this will help the company to
provide the product at a low price than the competitors product
.The company is also giving sales promotion on customer satisfaction by giving an
effective channel of communication and timely doing of various services by company
at time .

Training programs:- Company is conducting training for farmers for various parts
of the country. Company is conducting training

program to people by sending

training officers to the place and giving a course of 3 days .by charging a fee of Rs
200 from them .the persons are find through the dealers and are informed to the
company .
Company is also using it sales promotion techniques through dealers.
sales promotion are also done through dealers

Awards:- Company is giving awards to the best dealers who had conducted sales
more than the target set by the company. Sales capacity of dealers are determined
by the company is based on the sales they had ,made on the precious three years
sales and by taking the average of the sales .

Compaction
During early periods KAMCO ruled the Market Company is now facing
compaction from exporting from china and various countries.

.In India VST,

Bangalore is the major competitor of KAMCO. Japan, Korea and China are also
competing with KAMCO in the same market. Other competitors are Greaves and
Srachi. Company is competing with its competitors by supplying quality products .the
main advantage is that the government is helping the company by giving high
import tax for agricultural machineries and that will increase the price of the product
that will help to give products at low price that competitors .

Sales administration
Sales administration is done in correspondence with company dealers and
government officials .in sales administration the various activities like payment to
various which in connection with market department ,like dealers ,vendors .other
activities like order processing and giving to sales department , order forecasting ,
follow up of sales with dealers, techniques for increasing etc are included in sales
administration . Making up call for dealers, visiting up pf the dealers, evolution of
dealers are done through sales administration .setting up of the limit of sales for
each dealer are set by the sales administration.

Management of sales force

Sales force is managed through dealers. Company is not having any sales
representatives of its own. Company is managing the sales force through dealers.
company has given the dealer right to manage the sales force various situation to
the area .the dealers can

give

advertisement in media .the dealers can give

suggestion about the thing company can adopt to increase the sales .the dealers will
inform about various situations which will help to increase sales and about
conducting of campaigns , exhibitions , service campaigns .

Distribution system
Company is having is having 3 distribution system
Large dealers
Company
Dealers

Sub Dealers
Consumers

small dealers
Company
Dealers
Consumers

exporting
Company
Consumers

Major Dealers in India

1. West Bengal
Govt.-West Bengal Agro Industries Corporation.
Pvt.-Friends Machinery and spares Ltd
2... Assam
Govt. - Assam Agro industries Development Group.
Pvt. - Chem Trade India Pvt Ltd.
3. Tripura
Govt.-Tripura Horticulture group
Pvt.-Krishishilpa Udyog
4. Maghalaya
Pvt.-Stanly Roy Constructions
5. Kerala
Kerala Agro Industries Corporation.

FINANCE DEPARTMENT
Financial performance of an organization is very important factor for the long
term survival profitability of any organization. Finance is defined as the provision of
money at the time when it is required. Every enterprise whether big, medium or
small, needs finance to carry on its operations to achieve its targets. It is the
livelihood of an enterprise. Without adequate finance, no enterprise can possibly
accomplish its objective.
The Finance Department deals with the procurement and management of
funds. This department controls the overall financial transaction of the company. It
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 is a multi core multiunit organization. It
means KAMCO have more than one unit established with their own fund. Surprising
thing is that KAMCO is giving dividend and carrying profit for 22 years. The Finance
Department keeps a record of everything concerning any expenses or income.\
The important functions of Finance Department are:

Management of Receipts

Management of Payment

Budget and Budgetary control

Auditing

Costing

Statutory transactions

Management of Receipts

Accounting system
Company is having a fully computerised accounting system which is using
own developed software called KAMCO FINANCIAL ACCOUNTING STSYEM which
will keep all the detail of payment of bill to vendors ,dealers ,expenses and other
expenses and income .in this system the final accounts like profit and loss ac ,
balance sheet ,etc are prepared . The financial activities are entered to this system
and the system will automatically send this to the concerned accounts and keep all
the details.
Cost centres
The cost centres will have a preplan of the various cost that they may have for
the next financial year and acquired through budgetary control .each cost centre will
make its cost based on the volume of production for the next year and are included
in the budget and are submitted to the board of directors for approval. The cost
which are incurred are to be get permission from the board of directors
Profit centres
All the centres of the company are profit centres. The company is giving
special care for keeping all the centres as profit centre. As the company is allocating
the money as per the planning the centres of the company is in profit.various centres
located at various parts of kerala at Athani,Kanjikode,Kalamassery, Mala are the
profit centres of the company
Budgetary control
The annual budgets of the company are prepared both for the capital and
revenue based on the requirements furnished by various units and Departments.
The requests of the department are analyzed only after consulting with various
departmental heads and Corporate Divisional Management Group and finalized only
on the basis of disposition of funds. These budgets are presented before the
management for approval. The budget is reviewed half yearly. If some changes are

occurred they are submitted to management/ board through a revised budget for
approval.
Capital investment
The capital investment was made by the government in the beginning of the
company. It was 1.6 cores. Government further dont make any capital investment.
This investment was made to make the assembly shope and procurement of initial
raw materials. The company further make its developments through the profit made
and loan from financial institution .the Company today making its investment for the
companies profit as the company is having enough cash balances
Financial managent
The company is having a well financial managent . the company is making
all the investment on various financial field according to the pre-planned structure
.the finance is allocated to each department only the required based on the past year
and based on the production planned .the excess money in invested in government
treasury and various government companies shares and the income is distrusted to
the government .

Government influence on financial policy

Even the company is a government company government dont
have any influence in the investment policy of the company .the investment policy is
fully controlled by the board of directors and the policy is changed on the bases of
the availability of the cash balances of the company with approvel from board of
directors.

PURCHASE DEPARTMENT
The function of purchase and material items are coming under one
roof .the material department has the changes of all the inflow and outflow of
material used for production process .purchasing department purchase the product
from the vendors as the required quantity that get from the material department . the
company has around 220 gualified vendors and from this vendors company
purchasing material .company gives best vendor award for best vendors .it will help
the company to get quality products at the right time .company has regular suppliers
and they are ready to give materials as per the requirement of the company .so at
present company not conducting vendor development program.
Purchasing procedure
Components for the products manufacture by the company are proquried based
on the quality requirement assessed by the department taking into consideration the
stock available

and pipleline suppliesexpected. In the case of purchase made for

new item on enquiry is floated and the quayion are recived and order finalized by
head of purchase department on the capacity of vendor based on the vendor
evalution .report they are required to supply samples for approval .the samples
submitted by the new vendor go to quality assurance deparment and based on their
report

decision are taken .after satisfying the supply of the trial order they are

included in the approved vendor list. and regular purchase order

and lealse order

by the purchase department. The approved vendor list are updated once in a year.

Vendor rating
Company has regular suppliers and they are ready to give materials as per
the requirements of the company. As stated the company has more than 200 regular
suppliers. The suppliers are classified into 3 categories A, B and C. company gives
these grades to the vendor depends upon some factors. They are the best quality
giving at the materials at right time and keep good relation with the company etc.

If a supplier gets A grade that means the company trust the vendor. After
that the company takes the same product from the vendor who with out initial
inspection. So the vendor who gets A grade has certain commitments with the
company. They want to keep the relation with out any interruption. So they want to
give quality goods at right time. By receiving the material from vendors purchase
department keep that materials in the stores and it is handled over to the quality
assurance department. A corporate purchase system is followed in KAMCO. All the
other unit gives their material requirement to the head office (Athani Unit) and the
head offices purchase department purchase the material for all the other three units.
If the supplier get the grade of B that means the company has only less trust
on the vendor. When then products of this vendor is arrived the quality assurance
with conduct a random inspection for the time up that vendor come under the
category of A grade .this vendor will get the money only after the products are
inspected and the RIR report has been reached from the quality assurance
department is

reached. Company will trust this type of vendors only very less

.products of this vendors are purchased after through check up only.

Vendor

who come under the category of C has to very care because

company will take the products only after a good inspection . their products will be
taken only after the fill inspection of the quality assurance and if the product see any
problem with any of the product company will remove them from the vendors and
will not do any further transation from this vendors. payments are made only after
reciving the report of RIR from the quality assurance department

VENDORS OF THE COMPANY

Out of the

200 vendors of the company which come under the various

category of A,B,C are

CATEGORY A
Delta colling towers private Ltd ,Delhi
Rajkumar agro engineering private Ltd,Nagpur
Sifter international , Faridabad , Haryana

Boom buying private Ltd, New Delhi

Mathew sons agro equipments ,Ernakulam
CATEGORY B
Himalaya electrical company,Chickpet, Punjab
Universal traders ,perumbavoor, Ernakulam
Vasuki agro products ,veerasandra, Bangolre
Spraywell engineering works ,Ernakulam
Orient agro equipments Ltd ,Ernakulam
CATEGORY C
Joseph Mathew and co. Ernakulam.
Yemkey steels ,Tamilnadu.
Active engineering works ,Westbengal.
Om shiva sons international Ltd ,Punjab.
Shiva enterprises, indore ,madhaya Pradesh.
Store management
In kamco company is following a centralized storge system .all the item are
incoming and outgoing through the centralized store . from the purchase department
all the item will go the quatity assurance department for quality assurance .from the
quality assurance department the items will be recorded in accounts .the items will
be relased from the centre store from the request from the concerned departments
head on request. In the case of finished good after quality assurance is made the
items will come to the cetral store and will be realsed on the request from the
marketing department .
Inventory control
Inventory control is maintained by material department through central store system.
The inventory control is maintained and recorded to decrese the inventory cost by
ordering the inventory just in time and frist in frist and proper recording will help to
reduce the theaft of good by workers .
Techniques used

The company is using two techniques in the inventory control

FIFA- first in first

In this technique the items will be realized in the order in which they come to the
store . in the material department the items will be recorded in this technique and
realized on this bases
JIT-just in time
The company has introduced this system in the near future and this helped the
company to the inventory cost atits minimum .in this system the items are ordered
only and when required .the vendors are also satisfied with this system as the
ordering quantity is less and can be easily supplied .in this company will have to
spend less amount in bills and more money can be retained in the business

PERSONNEL DEPARTMENT
This department concentrates more on manpower resources and aim at attaining
maximum individual development, desirable work atmosphere and inter- personnel
relations, effective moulding of human resources as contrasted with physical
resources, and also gives proper training to human resources relating to individual
development, particular work, inter- relations, etc.

KAMCO has determined and

provided adequate resources needed to implement and maintain the quality

management system and continually improve its effectiveness in order to enhance
customer satisfaction by meeting customer and other requirements. Man power
requirements for production and verification activities are identified, trained and
assigned to perform specific tasks which affect quality.
Functions of HRM Department
a. Recruitment and Selection.
b. Training and Development.
c. Promotion.
d. Welfare of the Workers.
e. Cultural Activities.
Selection proucdre
In KAMCO there is a specific recruitment and selection procedure. Recruitment
focuses on identifying the right person for the right job.
There is no obligation in promoting a person to the position of a person who retired
and goes on deputation and in appointing a person to the part after the death of his
father/mother, handicapped, sportsmen, etc, according to the retirement policy.
According to the present policy the company can recruit people on a temporary
basis from the employment exchange.
The employment exchange forwards a list of candidates for the required posts in
the unit on their notification to the district employment officer, Ernakulam. According
to the number of vacancies, a certain number of candidates will be sponsored by the

employment exchange. All the sponsored candidates are advised to appear for a
written/practical test and interview at the registered office at Athani on a date fixed by
the company. Verification of the certificates/testimonials will commence which will be
followed by the written/practical test and interview. Certificates proving ones age,
qualification, caste, experience, etc for verification along with a photocopy of each of
them should be produced. The travel expenses of SC/ST or other eligible
communities will be borne by the company. On the selection and appointment of an
employee, intimation will be made by to the employment exchange and updating
their records.
This is the procedure followed by KAMCO Ltd for the recruitment and selection of
their skillful workforce.
At present, KAMCO is proudly foregoing ahead towards promising future. The ever
increasing Demand for the KAMCO products and the Trust and Confidence vested
in them by small and marginal farmers has made it possible for KAMCO to double its
production in a short span of time. KAMCO has made a significant contribution
towards achieving self- sufficiency in food production. Today, KAMCO proudly
rededicates itself to the cause of self- reliance and self- service of the people
because, KAMCOs product occupies a place of pride among the forming community
throughout India and as well as among competitors who produce such products, for
their Quality and Reliability.

Steps in selection process

Advertisement

Interview

Selection

Training

Appointment

Training programme of KAMCO Ltd

Company is conducting different type of training for its workers and other office staff

On the job training

On the job training is conducted for the workers, workers education

programme are conducted under the supervision of the workers education
center. For this purpose, a 2 to 3 months training classes are provided to
the trade union leaders of the organization who act as the workers
teachers. After attending the training programme conducted at the workers
education center, they conduct classes to all the workers in the
organization by forming them into different batches.

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.

Off the job training

For the officers at the top level, middle level and supervisory level,
management development programme are conducted. Here, training is
provided on contract basis of 2 to 3 days by the faculties from different
management institution like Kerala State Productivity Council, Center for
Management Development, Indian Institute of Management, etc.

External training is given to the individuals who would be outside the promises
of the organization by conducting seminars.

After the ISO awareness training classes were conducted. The subjects
handled in these classes were personality development, personal relationship,
transitional analysis and productivity.

For the new recruits, a 15 days training classes are conducted specialized in
orientation training.

Based on the Factories Act, ESI Act, Maturity Benefit Act, Income Tax rules,
etc all the accountants and dealers are provided training classes.

A 15 days computer awareness-training programme is conducted with the

changing techniques at regular intervals.

Welfare schemes
It is the HRM of KAMCO that plans and implements the welfare
programme which fully motivate the work force of these company, besides the
HRM playing a crucial role within the organizational environment. The welfare
amenities are better motivators since they motivate the workforce. The
welfare work of KAMCO constitute the efforts of the employees to establish,

within the existing industrial system, working and sometimes living and
cultural conditions for the employees beyond what is indispensable.
A KAMCO welfare center is functioning within the premises of the
organization. There is a monthly cut of rs.25 from the salary of all the
employees towards the KAMCO welfare center. The employees and
employers towards the Kerala Labour Welfare Fund on a half yearly basis
also make a contribution i.e., from June and December salary.
The Employee Welfare Centre of KAMCO Ltd, undertake the following activities.

Grant in aid is provided to the wards of members in a year.

Medical treatments benefits are provided. If the employees undergo hospital

treatment, which result in absence from duty, cash benefit will be provided to
the concerned employee from KAMCO Welfare Centre.

Retirement benefits are provided. A unique advantage of the KAMCO

employees who are retiring is that they get their Provident Fund, Gratuity,
Pension and other benefits on the retirement day itself without any delay in
the procedure.

Thus promote education and development of work culture among the

community.

They establish and inculcate educational research programme into the public.

They render financial assistance to the residents of Nedumbassery

Panchayath.

They promote, facilitate and aid any other subjects of general public utility
beneficial to the employees, members of their family and the community to
which they belong without any motive for profit.

They promote family planning measures among the community in the area.

The Welfare activities of KAMCO includes canteen ,uniform ,washing and

stiching allowance, safety equipments, medical check up,

medical benefit, housig

subsidy, transport subsidy or ESI, PF, Gratuity, Leave encashment, LIC for E/L,
Conveyance advance.There is no salary deduction for Gratuity, only persons who
have experience above 5 years are eligible for gratuity
Grievance prodedure

KAMCO does not have specific grievance handling machinery. Grievances if any
may be brought to the notice of the immediate superior.

Depending on the

seriousness of the grievance, it may or may not be forwarded to the Managing

Director who is the final authority. A grievance once redressed cannot be put up
before a committee of appeals. Cases of indiscipline are treated in the following
manner:

A memorandum/show cause notice is issued to the employee.

If the reply received is not satisfactory, a charge sheet is issued.

Again if the employee is unable to respond satisfactorily, an enquiry is carried

out.

The enquiry report is placed before the HRD committee. Punishments are
decided depending on their recommendations.

The most common cases of indiscipline are absenteeism and overstaying of leave.
Late coming up to half an hour is allowed. Exceeding that salary cuts are effected.

Steps in grievances

IDENTIFY
GRIVANCES

DEFINE
CORRECTLY

IMPLEMENT AND
FOLW UP

COLLECT DATA

PROMOT
REDRESSAL

Wages and salary adminsrtation

Wages wages are revised at four years .it is settled between the board of directors
and union members .of the company .it is mainly on long term settlement
,performance appraisal is conducted when grades are given

.there is a priscribed

firm conducity performance appraisal .

production above the strandart set company is giving incentives over the
wages which will benefit of employe which constitute quarter of the pay packet.any
system of remuneration paid in which the amount paid independent on the result
oriented there by offering the employe an incentive to achive better result .it aims at
increased output productivity and utilization of resources .this scheme covers all the
permant employees .
salary
In case of salary it is compared to the kerala government employee scaleof pay.
Company is giving incentives out of the salary.
Incentives
Company is having three incentive scheme
1) Direct incentive
2) Semi direct incentive
3) Indirect incentive
1) Direct incentive
This is given to the workers who work in machine shop ,assembly ,and painting
booth. after conducting work study
implemented
2)Semi direct incentive

monthly incentive scheme has been

This

incentive is given to the employee in the maintaince , quality assurance

engineering stores , charges head ,and chief machineries.a semi direct incentive is
80% of direct incentive . it is also paid in monthiy bases
3) indirect incentive
Indirect incentive is paid who are paid not included the direct and semi direct
incentive .employee in the managerial category also under this indiect incentive is 60
% of direct incentive

Human relation
the company is keepaig a good relation in between the employees .hrm
department is taking care of the human relation activities in the organization .every
year the company is conducting cultural programs as all departments and employes
are take particitated in that activits . in evey year company is taking classes about
the effects of human relation in production .
Union relationship management
KAMCO has five recognized trade unions. The management has cordial
relations with all of them. They are; The KAMC Employees Union which has no
political affiliation, KAMCO Employees Union affiliated to CITU, KAMCO Employees
Association affiliated to INTUC, KAMCO Employees Federation affiliated to AITUC
and KAMCO Employees Centre affiliated to UTUC. As a part of its labor welfare
measures, KAMCO provides both statutory or intramural and non statutory or
extramural welfare measures.
Management development
Company is having a good and well developed management. all the department
of the company is headed with senior managers and below them deputy managers
and there assistant and workers. A good inter relationship is maintained in between
the departmental heads

COMPUTER DEPARTMENT
The company has a system department all the four units of the
company are connected through internet and all the four units have their servers. In
this corporate unit each department is connected through a LAN. The system
department uses a customer ERP (Enterprise Resource planning ) package,
backend with oracle Companys system department is not as much developer, so it
is not used in any part of production. There is an inbuilt MIS function in this ERP
package and this package are divided into different modules . Each module if for
each department, by the help of these modules, departments can transact the datas
and it makes the work easy.

Management information system

Company is having a good management information system.all the senior
managers are provided with laptops which are inter connected with internet with
system department central server .each department is having a modules in the
central which control the operation of that department and between other
department. Various modules for departments are
1) HRM MODUEL
Under this various items like attendance ,personal information ,provident fund
are coming

under this module. When employess are punching their cards in the

machine their attendance are recorded in this module and are stored.at the end of
the month attandance is calculated and leave of each one is made.and based on this

attendance incentives are calculated automatically . the salary paid are also
recorded in this module.
Personal information of employee like name, date of
joining ,department of working , qualifiactions , production of the unit of paticular
month etc come under this module .training recived next time of training etc will be
recorded in personal information .based on this the efficiency and improvement in
job etc are calculated and evaluated.all details of each employe will come under this
module.
2) MARKETING MODUEL
Under this module sales accounting ,stock for sales ,various invoice details, vendor
sold details etc is coming under this. Sales details like number of goods sold ,place ,
time ,price type of payment ,date of collection of money etc will come under this.
Sales order placed by vendors ,type of products ,feedback of vendors , costumers ,
other information from vendors like tranning to be given , exibition etc will also
recorded and controlled in this . minor informatioins like chase number of machines
send to each vendors etc will also be recorded .this will helpcompany to detect the
product if it has any damage at any time and find the reasons.
3) INVENTORY MODUEL
Under this module the inventory details like purchase related items like IGRR
(inspection good received report ) inventory report etc are included in this module.
this module is connected to all production units like kanjikode, kalamassery,mala
and the raw material and finished good details are recorded inthis module and are
reported to the central store and good are issued and recived by the central store
department. This module will also kep details of the products like date of delivery ,
number of good , vendors ,quality place and department they are issued etc.
4) FINANCIAL ACCOUNTING SYSTEM MODULE
In this payments ,vouchers ,final accounting system ,are controlled and kept. Profit
and loss a/c ,balance sheet are prepared through this module. Various payments
,type, parties ,date ,purpose etc will be ,this module will keep detsails of online
payment of cash through banks are kept .also receives for parties details ,date of

payment , type , etc will also come in this. Finala/c are also prepared with the help of
this module.the software developed will automatically will perpare the balance sheet
and P&l a/c will automatically prepared when the items are entred and type which
the comes under are given.all the financial details of the come under this module

5) INCENTIVE MODULE
All the incentives are calculated ,kept , retrived are done through this
module.incentives are calculated for workers in different ways. For workers
incentives are calculated from the production the had made and for office staff it is
calculated on the base of the number of present days .in case of workers are
incentives are calculated by taking the production details from the number of
products produced which is kept in the production department . this will be taken and
the fixed percentage which is feeded in the hr module is calculated and are
transtred. Then the salary is added and it will be transfed to the bank a/c of the
worker which is kept in the hr module. In case of office staff incentive are calculated
in the bases of the attendance which is stored in the hrm module. This all are
automatically done by the interlinktion of various modules
6) PAYROLL MODULE
All the salary and wages are calculated and kept in this module. Salary and wages of
each employee are calculated and various expenses like PF , housing loan if any etc
will be calculated based on the information from HRM module .this payments will
also be recorded in the financial module and hrm module . after calculating all this
the money will be transferred to the bank a/c of the workers.

MATERIAL DEPARTMENT
The materials department has the charge of all inflow and
outflow of materials used for the production purpose. Stores department keep the
materials from their vendor for the required quality. All the functions of these
departments come under one roof. The company has around 250 qualified vendors.
Company gives the best vendor award for the best vendor. It will help the company
to get the quality materials in the right time.Company has regular suppliers and they
are ready to give materials as per the requirements of the company. As stated the
company has more than 200 regular suppliers. The suppliers are classified into 3
categories A, B and C. company gives these grades to the vendor depends upon
some factors. They are the best quality giving at the materials at right time and keep
good relation with the company etc.
KAMCOs material and stores department function as follows:
1.

Purchase of materials

2.

Receipt and inspection of the materials

3.

Storing of the materials

4.

Issuing of materials

5.

Accounting of materials
Procurement
The materials are procured are through vendor from various partes of the

country. The vendors are found out through open tender and testing the quality of
the product supplied with the quality policy of the company. Company has regular

suppliers and they are ready to give materials as per the requirements of the
company. As stated the company has more than 200 regular suppliers. The
suppliers are classified into 3 categories A, B and C. company gives these grades to
the vendor depends upon some factors. They are the best quality giving at the
materials at right time and keep good relation with the company etc.
If a supplier gets A grade that means the company trust the vendor. After
that the company takes the same product from the vendor who with out initial
inspection. So the vendor who gets A grade has certain commitments with the
company. They want to keep the relation with out any interruption. So they want to
give quality goods at right time. By receiving the material from vendors purchase
department keep that materials in the stores and it is handled over to the quality
assurance department. A corporate purchase system is followed in KAMCO. All the
other unit gives their material requirement to the head office (Athani Unit) and the
head offices purchase department purchase the material for all the other three unit
Utilization of raw materials
The material procured are used form the assembly of tillers. the products are
mainly utiltzed in the assembly shop and manhine shop .the materials acquired will
go through various process like drilling

,painting , pre-treatment

etc and will

assembled for making tillers.

Vendor development
Company is giving importance to its vendors . here the vendors are rated and given
the level of A, B, C .if vendor is coming under the catageory of a the company will
trust him more his products will be accured with out any inspection and quality
testing . vendors coming under the category of B the products

will be tested

periodically and tested .vendors coming under the category of C the products are
checked on per load on a sample bases will be inspected. The company is also
giving best vendor award for the vendors who satisfy the vendor rules and quality of
the company.

Quality control
Quality Assurance clarifies the components into two critical component and non
critical components. Critical components are crank shaft, all engine parts, gear
wheels etc. non critical components are nuts, bolts, and screws etc. The clarification
is mainly for ignoring the practical difficulty in checking. Complete inspection occurs
in critical components and only sample inspection in non critical components.
Practical difficulty in checking non critical components is the problem there from here
the production department as their requirements takes the components. After getting
a finished product from the assembly department for the final checking. If it is OK it
is gone to the store. From these the machine will enter into marker through dealers.
Calibration cell:-Q.A departments are equipped with all modal facilities. The
company has a calibration cell to check and correct the measurements of all
measuring instruments.

QUALITY ASSURANCE DEPARTMENT

Company keep good quality in their all products with the help of quality
assurance department. For a company trying to more its presence felt in the
international marker through quality products and services, quality management
system should be at work. The company follows its 1SO 9001-2000 standards. It is
mainly for the quality.
Materials and the components from the vendor are received in the stores
department. And Accounts as inward receipts in the hands of stores (IGRR) This
IGRR NO: Delivery Chelan No: date, name of the vendor, quality grade of the vendor
etc. with this receipt the stores department handed over the components to the
quality assurance department. From here starts the function of Q.A department. In
Q.A department there is all specification of the components, to know these
components have all the specification that are needed for production.
Quality Assurance clarifies the components into two critical component and
non critical components. Critical components are crank shaft, all engine parts, gear
wheels etc. non critical components are nuts, bolts, and screws etc. The clarification
is mainly for ignoring the practical difficulty in checking. Complete inspection occurs
in critical components and only sample inspection in non critical components.
Practical difficulty in checking non critical components is the problem there from here
the production department as their requirements takes the components.

QUALITY ASSURANCE DEPARTMENT FUNCTIONAL HIERARCHY

MANAGING
DIRECTOR

DEPUTY GENERAL
MANAGER R&D

DEPUTY MANAGER
QA

ASSISTANT
ENGINEER

CHIEF MECHANIC

MECHANICS

This department functions with the objective of ensuring that QUALITY is

maintained for each product of the organization.
RIR (Receiving Inspection Report)

Material given for inspection to mechanics

Filed IRR i.e., whether OK or not/good or bad

IGRR (Inspection Goods Received Report) i.e., it shows the number of articles
accepted or rejected from quantity supplied, value of accepted quantity.
IGRR sent to the stores department
Procedure for quality assurance department
1) Production plan, sales plan and requirements plan emerges from the annual
business plan /budget. New requirement of machinery, equipments, tools, guards,
jigs and fixtures also emerge from the business/budget.
2) Concerned departments make resources plan comprising of new equipments and
up gradation of existing infra structure and submit proposals to managements.
3) Resources plan can also be need, based on the market situation and customer
feed backs.
4) For approval of the proposals, managements takes into account selection of
equipment, the improvement in quality/productivity aspects and the justification put
forth by departments connected.
5) The management approval with corrections if any are forwards to concerned for
implementation of the programmer.

CERTIFICATE

BONAFIDE CERTIFICATE

DECLARATION

SERIAL NO.

CONTENT

PAGE
NO.

INDUSTRY PROFILE

COMPANY PROFILE

ORGANIZATION CHART
FUNCTIONAL AREAS

PRODUCTION DEPARTMENT

FINANCE DEPARTMENT

MARKETING DEPARTMENT

PERSONNEL DEPARTMENT

SALES DEPARTMENT

COMPUTER DEPARTMENT

10

QUALITY ASSURANCE DEPARTMENT

11

MATERIAL DEPARTMENT

12

CONCLUSION

INDUSTRY PROFILE

COMPANY PROFILE

ORGANIZATION CHART

PRODUCTION DEPARTMENT

FINANCE DEPARTMENT

MARKETING DEPARTMENT

PERSONNEL DEPARTMENT

SALES DEPARTMENT

COMPUTER DEPARTMENT

PURCHASE DEPARTMENT

MATERIAL DEPARTMENT

QUALITY ASSURANCE DEPARTMENT

CONCLUSION