Submitted by RAHEES K (Reg.No 1050)

In partial fulfillment of requirement for the award of


(Approved by All India Council for Technical Education, New Delhi) THIRUVANKULAM KOCHI-682305 2009-2011


I RAHEES K.hereby declare that this organizational study report at KAMCO LTD has been prepared by me under the guidance of Prof. M.P.kesavan Nair, Associate Dean, Bhavan’s Royal Institute of Management, Tiruvamkulam, Kochi. I also declare that this training report is my original work and that it has not previously formed the basis for award of any degree or diploma.

Date: 30/07/10 Place: Cochin




I wish to express my indebtedness and gratitude to Mr. Jolly Thomas, HR Manager for giving me support to do this internship training in kamco Ltd. I would also like to reserve a warm and special note of thanks to my internal guide Prof.M.P.Kesavan. Nair (Associate dean) whose wholehearted support and guidance helped me to complete this organizational study successfully. My special acknowledgement and gratitude to Kamco Ltd. for granting me the permission to carry on my internship training in their reputed organization. Last but not the least; my gratitude is to the almighty for showering me with abundant grace through the entire duration of this training. I believe that the light that God has passed on to me shall be kept alight in all days to come.

Date: 30/07/10 Place: Cochin






Page no


1 2 3 4 5 6 7 8 9
10 11 12 13 14 15 16 17 18 19 20 21 22

1 1.1 1.2 1.3 1.4 2 2.1 2.2 3
3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13

Introduction Need And Significance Of Study Objectives of the study Scope of the study Methodology followed Industry Profile World Scenario Indian Scenario Company Profile Introduction Objective of the company Milestones of the Company Business Environment of kamco Present Status Of Kamco Future of kamco Corporate Governance Pollution Controlling System Of Kamco ISO 9001-2000 Certification Industrial Relation Quality of product Quality policy of kamco Organization Structure Of Kamco Detailed Study Of Department

1 2 2 3 3 4 5 7 10 10 11 11 12 12 13 13 13 13 14 14 14 15 18 18 21

23 24 25

4 4.1 4.1.1

Production Department Manufacturing

26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48

4.1.2 4.2 4.2.1 4.2.2 4.2.3 4.2.4 4.3 4.3.1 4.3.2 4.3.3 4.3.4 4.3.5 4.3.6 4.3.7 4.3.8 4.3.9 4.3.10 4.4 4.4.1 4.4.2 4.5 4.5.1 4.5.2

Other Products Marketing Department Competitors International market Dealers Sales promotion Human Resource Management Workman classification Recruitment and Selection Training and development HRD Activity Promotion Wage and Performance Appraisal Kamco’s Welfare Programmes Wages for workman Attendance Incentive Finance Department Function of Finance Department Bankers of kamco Purchase and Stores Department Duties and Responsibilities Purchasing Process at Kamco

21 30 25 26 26 27 28 29 30 31 32 33 34 36 36 36 36 44 39 43 50 45 46


49 50 51

5 5.1 5.2

Swot Analysis Observation Conclusion

49 51 51

FIG. NO TITLE Production Department Marketing Department Human Resource Department Finance Department


4.1 4.2 4.3 4.4 4.5

18 24 28 37 44

Purchase And Store Department


Agriculture is a way of life, a tradition that for centuries has shaped the thought, the outlook, the culture and economic life of India. Life on earth is supported by the inches of earths crust, fulfilling the basic needs of food, shelter and clothing. Over 100 million Indian farmers and farm workers have been the backbone of Indians agriculture. In the beginning, ancient methods were adopted by farmers. All crops are produced and prepared by human muscles. The entire process from sowing the seed till harvesting was a time consuming process which required a lot of labour work. The cost of production was high and the benefits were not promising. Indian agriculture has contributed significantly in achieving self sufficiency to avoid food shortages in our country. Agriculture is therefore and will continue to be the central to the development of the country. Rapid growth of agriculture is essential not only to achieve self reliance at national level but also for house hold food security. The existing agricultural scenario presented a dismal picture of traditional farming methods, low yielding seeds primitive implements, unsuited to large scale cultivation. The only solution for this is mechanized farming which could turn around the virtual fortune of India. In order to achieve this objective, indigenous agro machinery units were to be set up, without resorting to imports, which undoubtedly posed a heavy burden on the nation’s exchequer and were hardly suited to the local conditions. Thus, out of the nations need, KAMCO was born in the year 1973, as a fully owned undertaking of Government of Kerala. In partial fulfillment of the PGDM programme, the trainee had undergone 30 days internship training at KAMCO.

Need and Significance of Study


Management principles can be taught in class rooms but managerial skills can be developed in an individual only. When he is trained so. As job are rare and lots of people are equally qualified what makes the student different is his familiarity with corporate practices, processes and this study is also attempt to make the trainee familiar with a public sector manufacturing company. 1.2 . Objectives of the Study Primary Objective 1. To study the overall functioning of the organisation. 2. To find out the difference between the theoretical aspect & practical aspect of running a business. Secondary Objectives 1. To gain practical knowledge about the functioning of various departments of the organization. 2. To understand the organizational processes, procedures followed at different department of the organization. At different department of the organization. 3. To study the quality assurance procedures and techniques adopted for, keeping the national and International standards.

1.3 Scope of Study


The study is intented to provide managerial insight to a management student. If will enable him to take up responsibilities of a manager at ease and provide him more confidence. The scope of the study is confined to a few selected departments and their functions. The trainee may also get a feel about how business executives operate in their work settings. 1.4 Methodology The study employed the method of observation to collect the required data for completion of this report. Discussion and interviews with concerned officials were also held for the purpose. Collection of data The area of data collected is from ‘K A M C O’ Source of data Data’s collected are classified as 1.Primary data 2.Secondary data 1. Primary data Primary data’s are those which are collected for the first time happen to be original in character. Primary data collected through discussions and interviews with management personnel’s of various departments. 2. Secondary data Secondary data’s were collected from various books, annual reports, company’s documents and from company website



State of kerala has peculiar state of affairs in its agricultural economy. Being a consumer state, it depends largely on agricultural products from the neighbouring states. It has tiny and small farmlands owned by private landowners. Even those available lands are not fully utilised for cultivation, owing to economic reasons. Low productivity coupled with prohibitive costs of cultivation has virtually driven the traditional farmers out of their vocation! Under this scenario, mechanization of the farming is a non-starter proposition in the state. Barring traditional tools and tackles employed by the farmers in the cultivation, there were no motorised or mechanised equipments available in the state. KAMCO, was adventurous enough to venture into this bleak scenario, and introduced its power tillers and other medium and small sized mechanical aids of cultivation. The Kerala farmers grabbed this opportunity, and made use of the benefits of automation in their fields, which in turn made the entire operations of the KAMCO successful. As of now, KAMCO is the one and only one industrial unit in the state, which provides machineries to the farming segment as an aid to their cultivation. Being a monopoly, KAMCO controls the Kerala market in supplies of automated farming equipments. Other competitors are yet to step into scene in the state. This industry is facing a great threat that the changing of agricultural economy into an industrial economy Producers in the same industry in the world market are:1. KUBOTA POWER LTD,JAPAN 2. SUNTEC LTD,SHENZHEN Producers in the same industry in the domestic market are:1. VST TILLERS LTD, Banglore



2.1 World scenario
World demand for agricultural machinery and equipment is forecast to increase 3.7 percent annually through 2012 to $111 billion. Gains will be paced by the accelerating mechanization of the agriculture sectors in currently large agricultural equipment markets such as China and India whose farm sectors are nevertheless still significantly unmechanized and inefficient in comparison to those found in more developed markets. Moreover, rapidly rising global staple food crop prices and shortages in 2007 and early 2008 indicate a growing necessity to increase farm productivity and Effie- ciency in developing countries. To some extent, gains could be hindered if energy prices remain at their current high levels through the forecast period and negatively impact global economic growth. China, India hold best growth prospects in developing areas Strongest growth in agricultural equipment demand will be registered in developing countries, with China and India holding by far the best prospects. Other large developing nations with sizable agricultural sectors, such as Brazil and Russia, will also post healthy gains as a result of increasing mechanization of their agricultural sectors. Besides benefitting from rising incomes, farmers in these regions will continue to strive to increase productivity through further automation and replacement of older equipment. Increasingly, draft animals such as horses and oxen used during various stages of the farming process will be replaced by agricultural equipment. In addition, rising wages in many of these countries as well as large scale migration

to urban areas will necessitate the replacement of human capital with fixed capital such as farm machinery. Gains in developed regions to lag world average The US will experience gains that will lag the world average due to decelerating growth in economic and agricultural sector output in the country through 2012. Western Europe will post particularly anemic growth through 2012, with gains arising from a strong 2007 when demand (in dollars) was bolstered by a strong Euro. Farmers in both the US and Western Europe will be adversely impacted by continuing trends in favor of free trade and against protectionist measures such as subsidies for domestic farmers and tariffs on agricultural product imports. Throughout the industrialized world, virtually all demand will be replacement oriented in nature, as the farming sectors of most countries are not growing in terms of number of farms, acreage harvested and similar physical variables. Given the widespread diversity and often interrelation of applications, growth prospects for specific types of farm machinery do not vary substantially when viewed at the global level. Global demand to rise 3.8% yearly through 2012 World demand for agricultural equipment is forecast to rise 3.8 percent per year through 2012 to $112 billion. Gains will be paced by the accelerating mechanization of the agricultural sectors in large markets such as China and India. Farm sectors in these countries are still significantly unmechanized and in efficient in

comparison to those found in more developed markets. Other large developing nations with sizable agricultural sectors such as Brazil, Indonesia, Russia and Thailand will also post healthy gains as a result of increasing mechanization. Besides benefitting from rising incomes, farmers in developing regions will continue to strive to increase productivity through further automation and replacement of older equipment and of draft animals used during various

stages of the farming process. In addition, rising wages in many of these countries, as well as large scale migration to urban areas, will necessitate the replacement of human capital with fixed capital. The US will experience gains that lag the world average due to decelerating growth in economic and agricultural sector output in the country. Western Europe will post particularly anemic growth, coming off a strong 2007 when demand (in dollars) was bolstered by a strong Euro and several other less significant factors such as Germany’s biofuel boomrelated forage harvester Purchases. In the short term (2008 and 2009), the West European farm machinery market should continue to register strong growth as a result of rising farmer incomes due to high global crop prices. Farmers in both the US and Western Europe will be adversely impacted by continuing trends in favor of free trade and against protectionist measures such as subsidies for domestic farmers and tariffs on agricultural product imports. Replacements, technology upgrades to boost demand Throughout the industrialized world, demand will largely be replacement oriented in nature, as the farming sectors of most countries are not growing in terms of number of farms, acreage harvested and similar physical variables. Demand will also be aided by the development and growing use of nascent higher value “precision agriculture” products that make extensive use of modern technologies such as Global Positioning Satellite (GPS) systems and wireless sensors. Given the widespread diversity and often interrelation of applications, growth prospects for specific types of farm machinery -- tractors, combines, planting and fertilizing, plowing and cultivating, and haying machinery, etc. -- do not vary substantially when viewed at the global level

2.2 Indian scenario
Farm mechanization helps in effective utilization of inputs to increase the productivity of land and labour. Besides it helps in reducing the drudgery in farm operations. The early agricultural mechanization in India was greatly influenced by the technological development in England.

Irrigation pumps, tillage equipment, chaff cutters, tractors and threshers were gradually introduced for farm mechanization. The high yielding varieties with assured irrigation and higher rate of application of fertilizers gave higher returns that enabled farmers to adopt mechanization inputs, especially after Green revolution in 1960s. The development of power thresher in 1960, with integrated Bhusa making attachment and aspirator blower and mechanical sieves for grain and straw separation, was the major achievement of Indian engineers. These threshers were widely adopted by the farmers. Gradually demand for other farm machinery such as reapers and combine harvesters also increased. Equipment for tillage, sowing, irrigation, plant protection and threshing have been widely accepted by the farmers. Even farmers with small holdings utilize many improved farm equipment through custom hiring to ensure timeliness of farming operations. The present trend in agricultural mechanization is for high capacity machines through custom hiring and for contractual field operations. However, mechanization of horticulture, plantation crops and commercial agriculture is yet to be introduced in the country. The pace of farm mechanization in the country accelerated with the manufacture of agricultural equipment by the local industries. With the modest beginning of manufacture of tractors in 1960s with foreign collaboration, today the Indian farm machinery industries meet the bulk of the requirement of mechanization inputs and also export. The manufacture of agricultural machinery in India is quite complex comprising of village artisans, tiny units, small-scale industries, State Agro-Industrial Development Corporations and organized tractor, engine and processing equipment industries. Traditional hand tools and bullock drawn implements are largely fabricated by village craftsmen (blacksmith and carpenters) and small-scale industries. The smallscale industries depend upon public institutions for technological support. These industries, however, upgrade these designs and production processes with experience. Organized sectors confine to the

manufacture of machines like tractors, engines, milling and dairying equipment. These industries have adopted sophisticated production technologies, and some of them match international standards. The enhanced scope of import of technology (product designs and manufacturing process) by organized sector and entry of foreign nvestors is likely to accelerate exports. Since cost of production of farm machinery in India is more competitive due to lower labour wages, the importers from variousCountries will find Indian farm equipment more attractive. Indian products, however, shall need improvements in quality for gaining major export growth. For this, mass production of critical and fast wearing components and their standardization would greatly help


The Kerala Agro Machinery Corporation Ltd popularly known as ‘KAMCO’ was established in the year 1973 as a subsidiary of Kerala Agro Industries Corporation Ltd (KAIC) and subsequently became a fully owned Government of Kerala undertaking at Athani, 25km north of Kochi. It all began in 1958, when Dr. Rajendra Prasad, the President of India was presented with a ‘Kubota Power Tiller’ by the Japanese (M/S. Kubota Ltd, Japan, the world’s leading manufacture of power Tiller and other agriculture machinery). The Kerala Agro Industries Corporation Limited (KAIC Ltd.) Trivandrum, (Government of Kerala Company) promoted the establishment of Kerala Agro Machinery Corporation Limited (KAMCO).The KAIC Ltd. Entered into a technical collaboration agreement with M/S.Kubota Limited, Japan in February 1972.On 15.11.1972, the Kerala Industrial and Technical Consultancy Organisation Limited (KITCO) were entrusted with the work of Rs.2 crores as a subsidiary of M/S.KAIC Ltd, which held the entire paid up capital shares in KAMCO. Even though the company was formed as a subsidiary of KAIC Ltd, subsequently the company became a fully owned government company by transferring the shares held by KAIC Ltd. KAMCO has completed its 33 years and is running on profit for the last 22 years continuously increasing its production, turnover and profit year after year.


3.2 Objectives of the Company The main objective of the company is to manufacture or assemble in India, either in collaboration or otherwise tractors, power tillers, power reapers, combine harvesters, transplanters, diesel engines, pump sets, accessories and attachments and spares thereto. The other objectives are as follows; 1. To organize, conduct or manage engineering workshops or repair shop. 2. To manufacture, import, buy, sell, or deal in workshop machinery, machine tools and metals of all kinds and to undertake repairs. 3. Servicing of agricultural machinery or other equipments, implements and tools 4. Rendering other kinds of services for services for consideration or otherwise. 3.3. Milestones of the Company KAMCO has three more units:-Kalamassery unit in Ernakulam dist. Kanjikode unit in Palakkad dist. and Mala unit in Trichur dist. The Kalamassery unit manufactures diesel engines, Kanjikode unit produce power tiller and the Mala unit manufactures power reaper. 1. A major milestone for the company was the award of the International Quality Excellence Certificate under ISO 9002 in October 1996. 2. KAMCO is the second public sector undertaking in Kerala getting this coveted certificate and the only public sector undertaking who has got ISO 9002 certification justify in the high standards of the products for their three units.

3. From 15-03-2002 onwards KAMCO became an ISO 9001company by KPMG quality registration. 3.4 Business Environment of Kamco

2000 registered

As far as KAMCO Ltd is concerns the business environment is in positive side in all respect. KAMCO Ltd products having heavy demand in the market, they are unable to meet the requirement of the customers. The company is functioning in a cordial and happy atmosphere. The officers and staff in the company are very co-operative and friendly moving. The Cochin Port and Cochin Aerodrome are situated very near to the company and this will also help to boost the business. The company is running a stabilised canteen for their employees to maintain a harmonious atmosphere resulting to make maximum output.

3.5 Present Status of Kamco KAMCO is one of the professionally managed company owned by state government. Present status of KAMCO is synonymous with service to the small and marginal farmers of the country. KAMCO through their precision and quality is revolutionizing the small and marginal holdings throughout the country. Today KAMCO’S products are widely used and demanded in all over India, enjoying over 60% of the market share at national level. The company with its four plants at Athani, Kalamassery, Kanjikode and Mala unit is confidently meeting the demand for KAMCO products in India and abroad. The main markets for the products are at West Bengal, Assam, Tamil Nadu, Tripura, Kerala, Megalaya, Bihar, Gujarat and Manipur. Presently KAMCO have 45 dealers all over India .

3.6. Future of Kamco KAMCO is looking proudly ahead into more promising future. Future will also see KAMCO‘s diversification products in the farm mechanisation field contributing significantly in food production and predicting itself to the cause of self reliance and social responsibility in the service of people without respite. Today KAMCO is a multi-product, multi-location company with two production units at Ernakulam dist., one production unit at Palakkad dist. And one production unit at Thrissur dist. KAMCO has a number of diversification plans in the anvil. It’s proposed to set up research development activities which will hopefully help it to develop new products in the future and live up to its promise, that its products will be “A boom for the farmer and again for the nation”. The quality policy of KAMCO is “Total customer satisfaction through quality products and service with improved technology and employee participation”. 3.7 Corporate Governance Being a non-listed GOVT. Company, provisions of the company’s Act 1956 with regard to corporate governance is not applicable. 3.8 Pollution Controlling System of Kamco Athani, Palakkad and Mala units of the company have installed effluent treatment systems designed by the LBS centre for science and Technology and approved by State Pollution Control Board. The all new engines will reduce pollution and it also reduces the fuel consumption than the ordinary engine. 3.9 ISO 9001-2000 Certification


Athani, Palakkad and Kalamassery units of the company is working with ISO 9001-2000 version certification. 3.10 Industrial Relations The industrial relation in the KAMCO is cordial which forms the basis for sustained growth of the organisation. 3.11 Quality of Products The company enjoys the position of premier manufacture in the field. The products manufactured are indigenized and there is no imported content in any of the items. The machines have acquired a reputation for quality and reliability. KAMCO is an ISO 9001 organisation with the aim of providing quality products at reasonable price to the satisfaction of customers. The company enjoys all India market through a network of about 45 dedicated dealers. Products are sold on premium at several places. They have acquired a brand preference because of the high quality and reliability associated with machineries.

3.12 Quality Policy of Kamco
Total customer satisfaction through quality products and service with improved technology and employee participation. We comply with the requirements of the customers and the applicable statutory regulatory requirements. The effectiveness of the established quality management system is continually improved to enable achievement of the policy. Objectives 1. To ensure that quality requirements of the products and service offered are maintained at all stages.

2. To create a culture among all employees towards total concepts and productivity through total involvement and commitment of all employee. 3. To create healthy working environment for attainment of quality goals with excellence and to make quality a way of life. 4. To detect and prevent non-conformance and defects as early as possible and to eliminate them through appreciate changes to the quality management system. 5. To achieve and maintain quality leadership through continuous technology up, gradation, improvements in techniques, system and procedures and to meet customers changing needs. 3.13 Organsation Structure of Kamco KAMCO is governed by the Board of Directors. Board includes Chairman, Managing Director and other Directors. The Government of Kerala nominates the Chairman of the Board. The Chief Executive Officer of the company is the Managing Director who shall exercise powers, subject to the overall control and supervision of the Board. The Managing Director is the topmost official and the Government gives delegation of authority to the Managing Director. He may be entrusted and delegated power from time to time by the Board. The Managing Director is the operational head of the company supported by General Manager and Deputy General Managers for different sections. Managers and Deputy Managers will assist the General Manager and Deputy General Manager. Board of directors 1. V.Chamunni 2. S.M.Reghunathan Director & Chairman Managing Director


3. C.P.Murali 4. M.Aboobakar 5. K.Ramdas 6. Edakulam Hameed 7. Sulaiman Khalid 8. K.K.Gangadharan 9. M.Albertian

Director Director Director Director Director Director (Director of Agricult-ure, Govt. of Kerala) Director (Dy Secretary, Agric- ulture, Govt. of Kerala)


KAMCO – The govt. company works with the help and support from the different departments. All departments work uniquely for the attainment of the organisational goal. The performance of the different departments was amazing for the past several years, that’s the reason why the company’s profit volume is increasing at a higher rate. The head of each department is Deputy General Manager (DGM) assisted by managers and Dy. Managers and Asst. Managers at different levels. Department heads are directly liable to report to Managing Director. KAMCO have totally 8 departments. They are as follows:1. Production Department 2. Marketing Department 3. Human Resource Department 4. Finance Department 5. Purchase & Stores Department 6. Quality Assurance & Maintenance Department 7. System Department 8. Engineering and Research & Development Department.








SHIFT OFFICERS (Asst Engineers)

ASST. ENGINEER (Production)








Fig No 4.1 structure of production department 4.1.1 Product Profile All the products of KAMCO have high demand in Indian market. KAMCO’s Products include:-


1 2 3 1.

KAMCO Power Tiller Model KMB 200 KAMCO Diesel Engine KAMCO Power Reaper Model KR 120 Power Tiller Power tiller is the main product of KAMCO. It is a versatile machine that

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

farming operations faster, cheaper and easier. The cost on tiller is around 1.10 lakh. Features 1 2 3 4 5 6 7 8 9 10 11 Simple movement and control for easy of handling Perfectly balanced and vibration- free engine to reduce operator fatigue Unique radiator cooling system helps in non stop operation ‘Fail-safe’ safety devices to prevent accidents Automatic fuel control to save precious energy Distinctive radiator control system for continuous operations It is faster Make cleaner windrows for easier collection 6 Forward speed,2 Reverse speed,4 Tilling Rotary, diesel-powered, water cooled, with radiator Weight is 485 kg


Diesel Engine

FEATURES 1 2 3 4 5 6 7 8 3. Economical with minimum fuel cost Smooth starting Easier operation Equipped with radiator Less vibration Less noise Travelling speed 15 kmph H P -12. Power Reaper

Features 1 2 3 4 5 6 Power reaper harvests and makes windrows at the rate of 3-4 hours for hectare. It is light enough to carry by two persons Smooth chain conveyer action deliver plants gently making clean windrows Weight is 136 kg Engine type is single cylinder,4 stroke CSD RR, side valve air cooled engine Maximum H P 3.6 Ps.

4.1.2. Manufacturing KAMCO’s Power Tiller have more than 850 different components, majority of which are supplied by dedicated small and medium scale industries from nearby states. Functionally critical components (almost 13) are manufactured in KAMCO’s house itself. Company has got a modern machine shop with special purpose machines, which ensure conformity with prescribed quality standards. Inspection at various stages off manufacturing is carried out, which help in reducing the process to the minimum. 4.1.3 Other Products KAMCO also deals with the following products:1. 2. 3. 4. KAMCO Super DI Power Tiller KAMCO Power Stone Cutter KSC 625 KAMCO Agria 602 DE Power Tiller KAMCO Agria Garden Tiller

All the above products are supplied by KAMCO to the needy people by the way of manufacturing on a limited edition. KAMCO has a future plan of manufacturing the above items in a bulk number


Duties and responsibilities The head of production department is Production Manager. Production Department is divided into two:1 Machine Shop 2 Assembling & Painting 1. Machine Shop Machine Shop is responsible for ensuring the conformity with prescribed standards, the workers in the machine shop are fully experienced.14 components are manufactured in the Machine Shop. These components are called as critical components. Processes like milling, drilling, boring etc are doing on the materials to get products which are used in the assembly. They inspect the various stages of production. This reduces rejection to a great extend. Shift officers are in charge of machine shop. From machine shop the finished products are sent to Quality checking and from there to stores. 2. Assembling & Painting Assembly is one of the major sections in the production department. The finished products are taken from the store and it is sent to the assembly as required. The engine assembly is one of the major works in the assembly. After testing the assembled engines, it sent to the painting section. Through different assembling we get the final product. In KAMCO, they are using a good advanced painting booth. After clearing the components will go for painting through a conveyer belt and after painting it will go to the oven through the belt. Mainly they are using 2 colours for tillers, one is ash and the other is post office red.

In each stages of Production Quality check up is done. Engine line assembly consists of 3 steps ie;E1 Assembly,E2 assembly and engine testing. After engine line assembly and transmission line, process testing is conducted for all speads, brake, driving shafts, sound etc. After all these processes, engine finishing is done .Then engine is mounted on tiller and the tiller finishing part is done. Duties and responsibilities of production manager Production Manager is in charge of production department.

Fixing the parameters of production department.

2. esponsible for solving problems relating to production. 3. Ensuring whether production is as per order and fixation of monthly target according to requirements. 4. Optimization of production costs. 5. Inspection of incoming materials. 6. Modification of production plans. The production department submits a Stores Issue Request to get the materials needed for production. After production, the department splits the material into: 1. Final products and damages 2. Assembly rejected parts. Damaged parts are considered as scarps and put for auction. After assembling, final products with the help of finished product transfer note is moved to marketing department.








Asst. ENGINEERS (Service)



Fig .No . 4.2 Structure of Marketing Department Duties and responsibilities DGM (Marketing) 1. Presenting marketing strategy to the board 2. Obtain management approval for periodical target 3. Developing or implementing or Customer loyalty or retention 4. Reporting performance to board for review 5. Arranging press conference periodically(annually)

Manager (Marketing) 1. Preparation and implementation of product/segment wise marketing plan 2. Setting targets to managers reporting to him 3. Implementation of marketing plan 4. Arranging dealer meets 5. Preparing of MIS reports A company’s survival depends upon better marketing strategies adopted by the company. Surviving from a lot of difficulties KAMCO became No:1 brand in the agricultural machinery market. Due to globalization KAMCO products have to compete with the International products. The products from China is a major threat for the company because if it’s lower price. But KAMCO is not ready to compromise with the quality of its products for reducing their price. This marketing strategy won the target market. Even after facing all the challenges of these competitors the marketing department could play a better role in getting good results. In the previous year company sold more than 7600 units. Considering the Indian market 60% of the market share is in the hands of KAMCO. kamco could achieve this by due to Globalisation, Foreign countries like China and Korea could introduce their products in Indian markets.Their products are very cheep. But interms of quality, KAMCO is first. 4.2.1 competitors In India VST, Bangalore is the major competitor of KAMCO firms from. Japan, Korea and china are also competing with KAMCO in the same market.


4.2.2 International market KAMCO’s Power Reaper has been exported to Iran and Srilanka recently. The export quantity is not a huge on but still they getting orders from those countries. These machines have been well accepted by the customers. 4.2.3 Dealers Sales of the products are made only through dealers. In each state there are 2 dealers. One is govt. institution and other is a Pvt firm. The company has 45 dealers all over India. New dealers are appointed to cover selected districts in Tamil Nadu, Karnataka, Maharastra, Orissa and Andra Pradesh and in the other states where the company has dealerships. The dealers target is depend upon the area. If a dealer exceeds their target they get incentives depending upon the excess quantity sold through them. The transporting facilities are provided by KAMCO itself. The sales are made against cash advances except in few cases; it is made against bank guarantee if the payment period does not exceed 30 days. Major Dealers in India 1. West Bengal Govt. Pvt 2. Assam Govt. Pvt 3. Tripura

- West Bengal Industries Corporation - Friends machinery and spares Ltd

- Assam Agro Industries Development Group - ChemTrade India Pvt Ltd

Govt. Pvt 4. Meghalaya Pvt

- Tripura horticulture group - Krishishilpa Udyog

- Stanley Roy Construction

4.2.4 sales promotion In the International market the sales promotion of the company is only through website. In India all the state govt.’s have their own dealerships to sell the products. The company gives dealerships to the private parties as well company’s main product is power Tiller. Company has invented a new engine, which is a diesel engine with direct injection. For the sales promotion of this engine company selling the KAMCO Super D1 Power Tiller with the same price of the ordinary Power Tiller Advertising is also a part of sales promotion. In every budget company allocate nearly 50 lakhs for advertising. Company also provides some financial help to the dealers for advertisements. Major markets Tillers - Kerala, Tamil Nadu, West Bengal & North Eastern States

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










Fig No 4. 3 structure Human resource Management

A good Human Resource Department is considered to be one of the greatest assets of the company. HR department deals with the welfare of human beings working in an organisation. Besides welfare , it looks after discipline, IR, training and development, desirable work atmosphere ,interpersonal relationships etc. HR Department helps in moulding the individuals to attain maximum development. The total employees strength of KAMCO is 400.

KAMCO has been running on profit for the past 22years.Behind these achievements, there lies the co-operation and hardworking mentality of its employees. Without these dedicated employees, KAMCO would have never reached the peak of success and achievements. About 15 employees are working in this department 4.3.1 Workman classification Workman shall be classified as:-

1. 2. 3. 4. 5.

Permanent Probationers Temporary Trainees Apprentices

Leave The following are the leaves granted to the workmen in KAMCO: 1. Earned Leave (Leave with wages) 2. Casual Leave 3. Sick Leave (for those who are not covered under the ESI scheme) 4. Special Leave – Leave without wages 5. Maternity Leave will be granted as per the provisions of the Maternity Benefit Act to those not covered under the ESI Act The administration of leave will be done as provided under the long-term settlements between the management and the workmen in force from time to time. The Human Resource Department of KAMCO is concerned with the recruitment & selection, training and development, promotion, welfare of workers and cultural activities.

4.3.2 Recruitment and Selection For KAMCO, there is a specific procedure for Recruitment and Selection. We can see two types of recruitment in KAMCO:1. PSC Recruitment 2. Company Recruitment Recruitment For the posts like Accountants, Office Staffs, Typists, Stenographers etc the people are hired through PSC recruitment. Executive and Technical post are filled through Company recruitment. Employment Exchange forwards a list of candidates for the required posts in the unit on their notification to the District Employment Officer, Ernakulam. Vacancies are advertised in major news papers or notified to the Employment Exchange in accordance with the Govt. rules. There is no discrimination based on colour , religion, race etc. Appointments are purely based on merit. The Dy. Manager is in charge of Recruitment and Selection, Promotion, Performance Appraisal, PF etc. Selection After obtaining applications, initial screening is done on the basis of the specifications given for the job. Short listed candidates considered matching the profile, go through the selection process. The selection process consists of written test, group discussion and interview. 4.3.3 Training and Development


Awareness training or orientation training is given to the new employees for a period of one week or one month. After this training, orientation report will be collected from each department. After analysing this orientation report they will give placement as a trainee under probation. Probation period is for two years. For the workers, Workers Education Programme is conducted under the supervision of the workers education centre. For this purpose, a 2-3 months training classes are provided to the trade union leaders of the organisation who act as the workers teachers. After attending the training programme, conducted at the workers education centre, they conduct classes to all workers in the organisation by forming them into different batches. For the officers at the top level, middle level and supervisory level, Management Development Programmes are conducted. Here, training is provided on a contract basis for 2-3 days by the faculty from different management institutes like Kerala State Productivity Council, Centre for Management Development, Indian Institute of Management etc. ISO awareness training classes are also conducted; the subjects handled in these classes are Personality development, Personal Relationship, Transactional Analysis and Productivity. For all the employees from the lower level to assistant engineers, the initial 2 years is their training period for which they get the consolidated pay. Apart from these, a fifteen days computer awareness training program is conducted with the changing techniques at regular intervals. Training and Development is taken care by HR Manager who is assisted by Personnel Secretary. Training charges are born by the company itself. HRD Activity

The company gives cardinal importance to HRD activities. Company follows a preplanned trained calendar covering all areas and the training is imparted with the help of various institutions. Effectiveness of the training programs is periodically reviewed for further improvement. Promotion As per the promotion policy of KAMCO, an employee will be eligible for promotion if he has served in a particular post for at least 3 years, or he will be given promotion when the vacancy occurs. Another aspect is Grade promotion, ie, promotions are based on grades of employees. In worker category there will be a grade change after a period of 5 years. For officer level, grades allotted are as follows:G8 – Asst. Engineer, Superintendent G9 – Asst. Manager G10 – Deputy Manager G11 – Manager G12 – Senior Manager G13 – Deputy General Manager G14 – General Manager Promotion ratio 1:1 is applicable to G3 and G4 employees ie, technical assistants and operators/mechanics respectively. Transfers are mainly for officers only. For that MD is the authorised person.


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

settlement. Salary settlement is based on the Kerala Government Employee Salary of Pay. Performance Appraisal is conducted once in a year fir officers and for workers, it is conducted when grades are given. There is a prescribed form for conducting Performance Appraisal. Benefits Provided by Kamco to its Employees Benefits can be classified as Statutory and Non Statutory Statutory
1. Esi 2. Pf 3. Gratuity 4. Canteen 5. Restroom 6. Light 7. Ventilation 8. Safety measures like Glouse, Boots etc.

Non Statutory
1. Conveyance facility 2. Allowances 40

3. Incentives 4. Loan Facility 5. Vehicle Loan Facility etc.

4.3.7 Kamco’s Welfare Programmes Welfare Programmes can be classified in 6 categories. They are:1. Essentials :- It includes items directly needed by employees during production and in

case of emergency. ex- Goggles, Draught relief fund, funeral expenses etc. 2. Work Security :- It refers to items of support given by the company for immediate protective element while performing a job. These benefits are given individually, section wise or company as a whole. Eg-LIC Schemes, accident benefits, personnel accident benefits, insurance, first aid etc. 3. Health care facilities :- It involves canteen and medical facilities. Example – ESI, Medical Reimbursement etc. 4. Well being and Motivation :- It is aimed at developing a sense of loyalty and boosting morale. Example – House building advance, loans, contribution to recreation etc. 5. Work surrounding facilities :- KAMCO provides spittoons, latrines, canteen facilities, reading room, television, recreation etc. 6. Training and education :- It helps the employees to perform better in work place and attain self actualisation. It includes expert training expenses and counselling charges. 7. Cool drinking water, Welfare officer, washing allowances, Occupational safety, first aid boxes, canteens etc. 8. Shift allowances are as follows : 1. First shift – Rs 5/day.


2. Second shift – Rs 7/day. 3. Third shift – Rs 8/day. 1. Attendance bonus: For no absence during a month 3 days wages is given. For half day, 1 ½ days wage will be given. 2. Special allowance Rs. 60 given to all employees.
3. Missed meal allowance: Rs 18 given to security staff coming for 3 rd shift i.e. 12 am to 8

pm Rs 24 given to workman on Sundays/holidays, when canteen is not functioning. 4. Milk allowance: ¼ litre of milk given to welders and workmen engaged in painting/phosphate plant. 5. School advance of Rs 1800/- is given to employees. 6. Conveyance allowance for purchasing cycle, scooter, cars, loans are given to employees above Deputy Manager grade. For minimum 5 years of experience is required to avail car and scooter loans. Interest is 10%. 7. Employees are given festival allowances of Rs 5000/- ever year in connection with onam, ramzan, Christmas etc. The amount is recovered in 10 equal instalments. 8. Transport subsidy of Rs 70/- given to all employees. KAMCO is not having vehicles for transportation. Second shift employees are provided with vehicles on contract basis and subsidized coupons. 9. Medical check-up:- For selected employer in the technical department they provide medical check-up in a year. It depends upon the nature of work. 10. First aid during the work, if any accident occurs first aid will be provided to workers. 11. The other allowances are cash handling allowances, house rent allowances, overtime allowances, uniform stitching allowances etc. A full fledged canteen is functioning at


KAMCO. It provides healthy and hygienic food at subsidised rates to the workers and employees working at various shifts.

4.3.8 Wages for workmen: All workmen are employed on monthly wages and will be paid on a monthly basis. 4.3.9 Attendance: Every workman shall be given an attendance card containing his name, number etc. Similarly every permanent and probationary workmen shall be provided with an identity card containing his stamp size photo, name, number, date of joining, etc. Assistant Manager Security is in charge of maintaining attendance and also maintaining discipline in work environment. 4.3.10 Incentive: A production incentive scheme is followed in KAMCO for the benefit of employees, which constitute quarter of the pay packet. It aims at increased output, productivity and utilisation of resources. This scheme covers all the permanent employees. In KAMCO, incentives are mainly of 3 types: 1) 2) 3) Direct incentives Semi direct incentives Indirect incentives Shift Timing:

For Plant Working: 7 am to 3 pm - 1st shift 3 pm to 11 pm – 2nd shift 9 am to 5 pm – General shift For Security Staff: 8 am to 4 pm - 1st shift 4 pm to 12 am – 2nd shift 12 am to 8 am – 3rd shift For Office Staff: 9.30 am to 5 pm – General shift 9.30 am to 1.30 pm – Saturday










Fig .No 4.4 Structure Of Finance Department


Duties and Responsibilities DGM (Finance) 1. Submission of strategic matters regarding to finance to board of decision. 2. Submission of quarterly and annual audit accounts to the board. 3. Presentation on dividend decision (final and interim dividend). 4. Financial concurrence on corporate investment decisions. 5. Overall supervision of day to day functions of departments as HOD. Manager (Cost/Audit) 1. Maintenance of cost record and arranging for cost audit. 2.

Preparing MIS reports on pricing and costing, leading to cost control. Internal audit of various activities and submission of periodical internal audit

report. 4. Preparation of product wise, segment wise cost records. 5. Preparation of quarterly, half yearly, annual financial statement. 6. Treasury functions The finance department deals with the procurement and management of funds. This

department controls the receipts and payments of each and every activity for all the divisions. In KAMCO ,finance department plays a major role because in public sector only very few companies are earning profit .KAMCO have more than one unit established with their own fund. Surprising thing is that KAMCO is giving dividend and making profit for 22 years. The surplus money is invested in the treasury and gets an interest of 7-8% from the treasury .The finance department keeps record of everything concerning income or expenses.

4.4.1 Functions of Finance Department 1. 2. 3. 4. 5. 6. Budget & Budgetary control Management of receipts Management of payments Auditing Costing Statutory transaction

1 .Budget & budgetary control
The annual budget of the company is prepared both for the capital and revenue expenses based on the requirements furnished by various units and departments. The request of the department are analysed only after consulting with various departmental heads and corporate divisional management group and finalised only on the basis of disposition of funds. The budget review is carried out half yearly. If some changes are required the details are submitted to management/board for the revision and approval 2. Management of receipts
Payments from dealers /customers are recived only through marketing department. They keep there is an proper receipts customer wise and dealer wise. If dept it must be informed to the marketing


department once in a month. Insurance, freight outward, bank negotiation etc are accounted and maintained to arrive at the cost of sale.

3. Management of payment

Due to the availability of funds, payments commitments are honoured on the due dates. All the payments are supported by approved vouchers. Payments are passed mainly on the basis of IGRR. Advance payments are settled with in a time of 45 days. Non receipts/delayed receipts extra is brought to the notice of store for remedial action payments are usually done by cheque. 4. Auditing Internal audit is an essential part of corporate functioning. Internal audit mainly takes care for the “CARD” requirements of companies act. It act as a “WATCH DOG” for an entire organization. The main function of department is to ensure that policy decision of the management is strictly followed by the functional department and is verified by the internal audit. 5. Costing Costing reports are maintained as per the cost accounting rules. They mainly subjected to cost audit ordered by company law board. Costing department also advice management and department which are the potential areas of cost reduction. Mainly costing departments analyses cost of production on an yearly basis. Costing department advice accounts department the cost of rejection as per warranty claims. 6. Statutory transactions Sales tax/income tax/TDS certificate/C- form/form-18 etc are issued are properly accounted and settlements are made at the appropriate time Salaries and other payments, remittance and recovery etc in the case of employees are done in a time.


The other functions are:1. Cash management 2. Bill Processing 3. Bank receipts 4. Bank payments 5. Sales accounting and costing KAMCO has shares of 50 lakhs in International Airport, Nedumbassery and shares of about 1.5 Cr. in Kerala feeds Ltd. KAMCO is a multi-crore, multi-unit organisation. It means that KAMCO have more than one unit or their own fund without any external funds. KAMCO has no loaned fund and hence the finance charge is nil. KAMCO has fixed deposits of about 20 crores, which earns interest to the company. Company raises the working capital with the help of the customer advances and fixed assets. KAMCO is paying dividend ranging from 10-30% for the last 15 years without any fail. KAMCO’s finance department deals with the procurement and management of funds. This department controls the overall financial transaction of the company. It controls the entire receipts and payment of all divisions. KAMCO is running on profit for the last 23 years. It is a unique feature of KAMCO. No other organisations are like this. Finance department concentrates more on the cycle of flow of funds ie., inflow and outflow of funds and it also ensures that whether there is appropriate

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

4.4.2 Bankers of KAMCO 1) Union Bank of India 2) State Bank of India 3) Federal Bank 4) Canara bank 5) State Bank of Travancore














Fig.No.4.5 structure of Purchase and Store Department
In KAMCO, the purchasing and stores department works together. But the manager in charge is different for both. All the functions of these departments, comes under one roof. The stores department takes care of all the inflow and outflow of materials used for production processes. Senior Manager of materials is in charge of stores department. Purchasing department purchases the products from their vendors based on

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

4.5.1 Duties And Responsibilities
Main Functions of Purchase Department: 1. Purchase planning 2. Price refixation 3. Vendor development 4. Purchase order generation 5. Negotiations with the vendors 6. Timely purchase of goods Duties and responsibilities General Manager (Purchase) 1. To be responsible for ensuring that all requisite raw material, spaces, equipment etc are available, so as to ensure smooth production 2. To ensure optimum inventory levels 3. To avoid stock out situation of essential items in the warehouse 4. Product inventory is kept to the minimum level as possible 5. To avoid obsolescence of inventory by time action 6. To report to the board on inventory control measures Senior Manager (Stores)


1. To be responsible for item wise accounting and control of various inventory items 2. In charge of warehouse Issues and Receipts 3. Property inventory control by EOQ max-min, Reorder level etc. 4. Up keeping and maintenance of warehouse items 5. Periodical reporting 4.5.2 Purchasing Process at KAMCO A corporate purchasing system is being followed in KAMCO. All the other units of KAMCO give their material requirements to the Head Office (Athani unit) and the head office purchases the materials for all the other 3 units. Procedure: First of all, the production department prepares a budget based on the raw material requirement. The budget contains the details regarding the raw material needed such as quantity, amount, name of suppliers etc. All the other departments also prepares budget based on the requirements. The budgets are then compiled by finance department. The budget has to be approved by the Managing Director. There will be a total amount which is to be allotted to different departments. After the budget approval, the list of raw materials is sent to purchasing department. The purchase department places the purchasing order. The purchasing order contains the details regarding the quantity required, rate, payment terms, suppliers name and address etc. The order is then handed over to purchase department. The purchase department then invites quotation from approved vendors. The purchase department then prepares a comparative statement on the basis of the received

quotation This is to select the most economical quotation for each specified materials. KAMCO used to gives awards for the best vendors. It will help the company to get quality product at the right time. Company has regular suppliers and they are ready to give materials as per the requirements of the company. So at present, company is not conducting any vendor development programmes. If necessary the vendor development committee recommends new vendors and maintains the existing list If the quotations seem to suit the terms and conditions, the purchasing department sends a purchase proposal. Purchasing manager is in charge of sending purchase proposal along with the approval of his superiors. Assistant Engineers are in charge of inspecting the raw material of Tiller items. All other general items are handled by respective departments. It the item to be purchased is machinery, a committee will be formed to study the its requirement in the company. If it is a general item like computers, office furniture’s, then also an enquiry is conducted before forwarding the purchase proposal.

Vendor Rating:
In KAMCO, vendors are classified into 3 categories – A, B and C. Company gives these grades to the vendors depending upon some factors like best quality, giving the materials at right time and maintaining good relations with the company etc. If a vendor gets ‘A’ grade, that means company trusts the vendor. The company takes the same product from the vendor without any initial inspection. So the vendor who gets ‘A’ grade has certain commitment towards the company. They want to get the relationship without any interruption. So they supplies quality goods at right time.

‘A’ category vendors are weighted above 90% marks. ‘B’ category vendors are weighted between 60% & 90%. ‘C’ category vendors are weighted below 60%. KAMCO provides all support and guidelines for the improvement of this category. Even then if they are performing poorly company will terminate them. Vendor rating depends upon 54 factors. The 1st factor is quality and quantity of goods supplied. In Kerala there is 70 vendors for KAMCO. Vendors are fixed on the basis of quotation and tenders.


5.1 SWOT ANALYSIS 5.1.1 Strenghths Of Kamco
1. KAMCO is the market leader

2. Good working atmosphere 3. Reputed brand name & image 4. Better incentive scheme 5. Qualified & skilled labour 6. Environment friendly 7. Good industrial relations 8. Strong & accepted products 9. Extensive marketing network through dealers 10. Good & quality products 11. Country wide sales & service networks 12. Easy availability of manufacturing components 13. Good, uninterrupted & continuous vendors

5.1.2 Weaknesses Of Kamco 1. Delay in sanctioning of funds


2. Political interference
3. Time delay in recruitment

4. Average age of workforce is 52 years 5. Strong influence of trade union 6. Lack of technological up gradation & automation 7. Promotion is based on experience, so performance will be poor 5.1.3 Opportunites For Kamco 1. Diversification programs & products 2. Innovativeness and bringing out new products to meet the new needs of customers 3. Boom in automobile industry and related engineering services 4. Due to good brand name KAMCO can extend the market 5. Export possibilities 6. Scarcity of labour & acceleries, so scope for mechanisation. 7. Availability of Monsoon 5.1.4 Threats Of Kamco 1. Influence of Govt. policies 2. High competition from domestic and from International market 3. Chance of Privatisation
4. Frequent change in the top management

5. Depression in agriculture 6. No restriction for Pvt. Parties to enter into this sector 7. High cost of operation 8. Whether problem


5.2 Observation

KAMCO has a good organisational structure and a good management systems

2. KAMCO is fully utilizing men, material and machinery

3. KAMCO provides all the welfare activities to its employees
4. KAMCO is having a production based incentive scheme

5. KAMCO is providing all the statutory and non statutory benefits to employees 6. KAMCO is having a good dealer network all over India 7. KAMCO have good growth possibilities

5.2 .1 Suggessions
1. Diversification of products and services is essential for success 2. Give more advertisement through all possible media 3. Introduce advanced technology for production 4. Incentive system should be encouraged 5. Counselling facility should be provided to the employees 6. Fill the existing vacancies 7. Young candidates must be appointed

5.3 Conclusion
Kerala Agro Machinery Corporation Limited (KAMCO) an ISO 9001 : 2000 company was established in the year 1973 at Athani. Today KAMCO has different units in Kalamassery, Palakkad and Mala. The ain products of KAMCO are KAMCO Power Tiller, KAMCO Power Reaper, KAMCO Diesel Engine.

KAMCO has a good dealer network all over the country. Customers of KAMCO are fully satisfied with the products and hence KAMCO’s products have good brand name. The strength of KAMCO is its employees. KAMCO is launching new products in accordance with the needs and wants of farmers (customers). The “ Organisation Study” at KAMCO, Athani was undertaken with the objective of developing an insight about administration and management of a business firm .The study at KAMCO helped the trainee to gain good knowledge about the operation of a business firm the trainee left that the study was successful and a memorable one.


Sign up to vote on this title
UsefulNot useful

Master Your Semester with Scribd & The New York Times

Special offer for students: Only $4.99/month.

Master Your Semester with a Special Offer from Scribd & The New York Times

Cancel anytime.