CHAPTER - I INTRODUCTION

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INTRODUCTION
Kerala SIDCO, a Public Sector Undertaking of the Government of Kerala has four decades of servicing to its credit as a Promotional Agency for Small Scale Industries. This Corporation is rendering assistance to SSI's in the State, like providing Infrastructure facilities, distribution of essential raw materials, marketing of the SSI products, undertaking Civil and Electrical works etc. Kerala SIDCO apart from its activities for development of Small Scale industries in the State runs production units engaged in the manufacture of wooden, steel, hospital furniture, computer furniture, laboratory equipments, and aluminium fabrication of any design. Also marketing products manufactured by SSI units in the state under our Marketing Assistance Scheme. Marketing division of SIDCO provides assistance to small scale units in canvassing orders from government departments and public sectors undertaking by wary of contract marketing and tender marketing. There are seven sales emporia and seven marketing centers all over Kerala. SIDCO participates in Exhibitions and Trade Fairs on behalf of SSI sector for the promotion of their products. Steps are in progress to market SSI products in Food, Plastic, Leather, and Rubber, Electrical in addition to wood / steel /hospital furniture and Laboratory equipments. In the light of Government orders from time to time SIDCO can supply various furniture to Government Departments without participating in tender. SIDCO mainly focusing on direct marketing, that means canvas orders from the government institutions and offices by the marketing executives then give orders to the small scale industries and collect products from the SSI units and sell the products to the institutions from where the orders has been canvassed. SIDCO mainly marketing the products to the government institutions rather than the private institutions. The main customers of SIDCO are the government institutions and offices.

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1.1 OBJECTIVE OF THE STUDY
The project titled ³To Evaluate and Study the Purchasing System Adopted by SIDCO´, analyses the ability of purchasing department to select the proper sources of supply of materials was studied. The objectives of this study are: y To study the factors considered in selecting the source of raw materials in SIDCO. y y y y y y y y y To know about the accuracy in terms of time, in receiving the materials. To study about the delivery of materials in SIDCO To find whether there is any rate contract with the suppliers To know the methods of choosing a supplier To study about the consideration of other department during purchasing To analyze whether the materials were inspected To find the ways to reduce transportation cost To analyze the relationship with the suppliers To study about the mode of passing bills

1.2 SCOPE OF THE STUDY
The study is intended to attain a firsthand experience of the running of a marketing department in an organization. The study helps to collect the detailed analysis of the ability of purchasing department to select the proper sources of supply of material.

1.3 RESEARCH METHODOLOGY
The methodology section describes the research procedure. It describes the overall research design, the methods of data collection, sampling procedure, field work, including the analysis and interpretation of data. This research is targeted on the decision making process of the purchasing manager of SIDCO which help him make final solutions for the problem. RESEARCH DESIGN The research design applied here is the determination and statement of the general research approach adopted for the project ³To Evaluate and Study the Purchasing System Adopted by SIDCO´

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The situations variables that existed. annual reports. coding classification of collected data so that. text books.5 PROCESSING OF DATA Processing implies editing. To demonstrate the cause and effect relationship the study has also used experimental research design in some of the questions such as importance of promoters activates market performance factors of consideration in stocking a particular brand. The research with the help of descriptive design tries to establish association between factors. internet etc. reducing all of them to zero to hundred ranges. The secondary data were collected from company records. SECONDARY DATA Secondary data are those which have already been collected by someone else and which have already been passed through statistical process. competitive advantage etc. 1. employees and by direct observation. The primary data for the study obtained from unstructured interviews with managers and departmental heads. y y y The behavioral variables of people who are under study. that are amenable to analysis.4 METHODS OF DATA COLLECTION The data collection method in the project includes primary and secondary data. IMK. PRIMARY DATA The primary data is obtained through observation and through direct communication with respondents in one form or another or through personal interviews.The research design here serves as a bridge between what has been established (the research objective) and what is to be done to realize those objectives. 1. Percentages are often used data presentation for they simplify numbers. journals. Alappuzha Page | 4 .

The interviewers can clear up doubts which provide maximum accuracy. The statistical analytical method is used to manipulate the data. The research also uses snowball sampling throughout which initial method and additional units are obtained from information supplied by the training department. y FIELD WORK Personal interviewing is the chief method used in the survey. irrelevant and illegible responses avoided for analysis. The sampling errors as well as non sampling errors is avoided as far as possible in the selection of representatives. The questionnaire prepared is pre-tested with five respondents. edited and coded of the preparation of analysis. IMK. The language of the communication can be adjusted to the status and educational level of the person interviewed.1. The study design statement finds out the target population which spells out the sources from which the data are to be collected. Ranking techniques are also used for analyzing the data. Alappuzha Page | 5 .6 TOOLS AND TECHNIQUES y SAMPLING The research reaches its conclusion on the basis of sampling. recording errors and the like are minimized to be greatest extent possible to achieve maximum information accurately. communication errors. Tables were prepared on the basis of coded data with the help of statistical tools such as simple percentage and the like. y ANALYSIS The raw data received from the fields of primary collection is validated. Their conclusions are drawn by the research by logical inference. inconsistent. In this survey the respondent¶s selection errors. thus avoiding inconvenience and misrepresentation. The two quantities most desired in a sample are its representatives and stability. In adequate. non response errors. In the particular research design the target population in the employees of different sections in the organization. Respondents will be more encouraging as most people are willing to supply information when approached to personally.

Alappuzha Page | 6 . As the collected and interpreted data is only from Thiruvananthapuram. y y The chances of personal prejudice were greater among the respondent. y I faced various difficulties in collecting data through questionnaire from the public because of their illiteracy. y Marketing research used the techniques of science but it by itself is not an exact science.The collected data is brought to a quantitative order in an array by an arrangement of data items in numerical sequence sample tabulation as well as cross tabulation is used to investigate the relationship between two or more variable. After evaluating the findings alternative course of action can be set of from suggestion and recommendations. so the result obtained is not very much applicable in all situations. IMK. the conclusion cannot be applicable to the total market. On the basis of analyzed data some findings were extracted. 1. y Many customers did not co-operate with me in the research process.7 LIMITATIONS OF THE STUDY As usual for any research were also having certain limitations as mentioned below y As in-depth study was not possible because the time limit was the main constraint. y Some of the customers and dealers were reluctant to give information at most good faith. y More time was required for collecting information from each respondent because interviews were held only at the convenience of the informants.

1.8 CHAPTERIZATION
Chapter 1 Introduction This chapter covers objectives of study, scope of study, methods used for collecting data, tools and techniques, limitation of the study and chapterisation. Chapter 2 Review of Literature Chapter 3 Industry Profile This chapter includes detailed profile of the industry, growth and history of Indian Textile Industry. Chapter 4 Company Profile This chapter contains the company details, company¶s mission, vision, objectives, group profile and product profile. Chapter 5 Data Analysis And Interpretation This chapter contains analysis of data collected and its interpretation. Chapter 6 Findings, Suggestions and Conclusion This chapter deals with findings during the study at the organization, the suggestions made for improvement of the company and the conclusion.

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CHAPTER - II REVIEW OF LITERATURE

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REVIEW OF LITERATURE
PURCHASE ³The total amount of goods procured by a business concern for cash or credit for the purpose of sale or use is known as purchases´. In the case of a trading concern this is the major item of expense. Goods purchased by the owner as it is not meant for resale or processing into finished goods. PURCHASE CONTROL Material procurement is known as the purchase function. has the responsibility for purchase cost accounting and cost control. Purchase Manager And His Duties The purchase manager is entrusted with all purchasing activity. He has to organize the purchase department systematically and efficiently. His in-efficiency to perform his duties effectively has far reaching consequences on the finances of his concern. The duties or functions of the purchase manager are: y y y y y y y y Prepare a purchase budget Receive purchase requisition and ascertain the material requirements Ascertain the sources of supply Invite tenders from suppliers Select the supplier who is offering best terms and conditions Issue purchase order to the supplier concerned Followup the purchase order to avoid any unnecessary delay in delivery Receive the goods received note and goods inspection report to make sure that the right type and right quantity of materials have been received y Return to materials to the supplier which are not according to the required specification. The functional

responsibility for purchasing is that of the purchase manager. The purchase manager

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The formal request received from the store keeper for purchase of certain materials is known as µPurchase Requisition¶. Forms and records are used to implement purchase procedure and purchase policies. price and other relevant particulars and pass it for payment. Following steps are commonly followed in purchase procedure.y Verify the invoice with regard to the quantity. Decentralized purchasing is exactly opposite to centralized purchasing. A special purchase requisition which is prepared by the departmental head for special materials. 1. It is usually prepared in triplicate. Initial purchase requisition It is the duty of these tore keeper t o initiate a purchase requisition. IMK. y Send the invoice to the accounting section. CENTRALIZED AND DECENTRALIZED PURCHASING Centralized purchasing means that all the purchase are made by the specialized department organized for the specific purpose of purchasing. The department requiring stores can draw them from their respective stores. Regular purchase department is prepared by the store keeper for regular stock of item. say for special materials. A purchase requisition is a form used as a formal request ot the purchasing department to purchase materials. Thus decentralized purchase are made by the individual department. In this separate stores are situated in various departments. The purchase requisition may by either a regular purchase requisition or special purchase requisition. In some cases this is prepared by the departmental head. PURCHASE PROCEDURE The sole function of the purchase department is to buy the light type of material at reasonable price and supply them when required without interruption. Alappuzha Page | 10 . The centralized purchasing only on purchasing department is there and all the purchase are made by this department. The purchase procedure varies from firm to firm depending upon the various requirements and conditions. In this all the materials purchased are kept at one central store. This department is headed by the manager. who is responsible for all purchase procedure.

department which initiated the purchase requisition and purchase department. their capacity to supply and the terms and conditions relating to mode of payment. The order for goods should be drafted carefully in clear. receiving department. Bill of material: It is a complete schedule of materials and components needed for a particular work order. Ultimately statement of quotations is prepared giving particulars such as names and address of suppliers. the price.The original copy is kept by the purchase department. Order no. Description of items and quantity orderd d. subjected to price and terms standard in it. Packing and forwarding instruction g. the duplicate by the store keeper and the triplicate is sent to the authorizing executive. accounting department. Signature of the officials authourised to place the order Generally printed terms are used containing the IMK. quantity and other specifications of the materials required for a particular work. definite words without any ambiquity. Five copies of an order are prepared for sending each of supplies. 3. A rational selection is made after considerating the various capabilities of the supplier. b. Purchase order An order is a contract to buy a specific material or materials from a supplier it serves as the basis of legal obligation to supply specified material. Quotations are invited from these suppliers and a comparative study should be made to decide who should be selected. reference no. Cash discount and other terms of payment h. Alappuzha Page | 11 . Calling for tenders and selecting suppliers The purchase department will have with them a list of suppliers. The buying department is informed through the bill of materials as to the quality. mode of delivery etc. following particulars. date. Suppliers name and address c. 2. Rate and the amount e. a. Mode and date of delivery f.

Alappuzha Page | 12 . who will prepare a µmaterial inspection note¶. Accounting department for passing entries c. Making payment Before making payment. The material will then be inspected by an inspector. Delivery note and the copy of purchase order. Receiving and inspection When the goods ordered are received. Stores d. Purchase department b. Receiving clerk shall prepare a goods µreceived note¶ in 5 copies to be sent to a. The quantity and price mentioned in the voice are checked. IMK. He has to verify the quality and suitability of materials in accordance with the specification as given in the purchase order. One copy is retained for filing. Department initiating the requisition e. receiving clerk checks whether the packages and their contents are in the correct quantity. He would sign the copy of µdelivery note¶ as an acknowledgedment of receipt of the goods. the relevant invoices are checked by the accounting section to confirm its authenticity as well as its arithmetical accuracy.4. 5.

CHAPTER . Alappuzha Page | 13 .III INDUSTRY PROFILE IMK.

the role of these industries is crucial as they provide employment to a large number of people.1 SMALL SCALE INDUSTRY Small scale industries are differentiated from the former by the technique of production.  To reduce regional imbalances. They use modern power driven machines and employ labor as well. edible oil and leather goods are produced by small scale industries. In countries like India and China. with an initial investment not exceeding Rs. IMK.60 lakhs on plant and machinery. In many developing countries. a large number of goods such as clothes.  To encourage capital formation.INDUSTRY PROFILE 3.  To popular entrepreneurial and managerial abilities and skills. if not available locally. toys. Alappuzha Page | 14 . These industries are larger in size than cottage industries. processing and preservation of goods.  To develop local entrepreneurship and skills. furniture. repairs and servicing.  To decentralize manufacturing activities from town areas and distribute them in the rural sector. The raw materials are also obtained from outside.  To create employment opportunities. Their products are sold through traders beyond local markets. The Major Objectives in Developing Small Scale Industries The major objectives in developing small scale and medium industries are given below:  To increase the supply of finished products. The Industries Development and regulation act of 1990 defines a small scale industries unit as a unit engaged in the production.

The Importance of Promoting Small Scale Industries The promotion of small scale industries is important due to the following reasons.  When compared to large scale industries the small scale industries have very short gestation period.  Decentralization of authority is very easy to put into practice in the management of a small industry. These offices make the entrepreneurs of small scale industries informed about the incentives and assistance offered to them by the Government. Services Rendered By the Taluk Industries Offices The services rendered by the Taluk Industries offices are to grant provisional registration to small scale industry units. small scale industries provide the possibilities for creating employment opportunities.  They can be successfully operated in rural and backward areas. They are quick yielding.incentive.  They can act as catalytic agents to enhance the growth of entrepreneurship.  Small scale industries require comparatively lesser amounts of capital. where capital resources are meager. 5% on the products of medium scale industries and large scale industries situated inside the state. They also recommend the names of small scale units which deserve to get incentives and assistance. to help them in their coordination and development etc. So they are suited to a country like India.necessary. to the respective District Industry office. They also help in promoting IMK. Price Preference Offered To Small Scale Industry Units For the purchases made by the Government Semi-Governmental institutions and public companies from small scale units. Alappuzha Page | 15 . 2% additional price to the products of small units with ISI registration.  They can be installed as ancillary unit if.  Being labour . the Government is giving the following price-preferences:    15% on the products of industries which are situated outside the state.

The agencies accord sanction with retrospective effect. This system of getting prior sanction is known as µGreen Channel Clearance¶. Industries which are enlisted as of polluting nature by the pollution Control Board Shall not get this facility. This is according to section 80J of the Income Tax Act. the entrepreneurs must get prior sanction from the control agencies. A small scale unit gets these exemptions for 10 years from the actual commencement of production. Bridge Finance Bridge finance is an interim finance which commercial banks provide to entrepreneurs on a short-term basis to enable them to tide over the delay in getting sanctioned term loans. and provide leadership in conducting various schemes in the Taluk level. less than Rs. In order to encourage the growth of such industries. Green Channel Clearance There are several small scale units each with a capital investment. the commercial banks and other financial institutions shall also delay in distributing sanctioned term-loans. Tax Holiday Benefit New industrial enterprises.new industry units. In case the borrowing entrepreneur delays in submitting necessary documents. This delay shall cause further delay in commencing the business unit. including small scale industries are exempted from paying income tax up to 6% of their profits (7. Alappuzha Page | 16 . Now according to section 80HH and 80HHA the entrepreneur of a small scale unit established in a rural area is entitled to get exempted of 20% of his profits.10 lakhs. In such a situation the entrepreneur approaches banks to get bridge sanctioned.5% in the case of companies) from their gross income. IMK. As soon the term loan is sanctioned the amount of the bridge finance is repaid.

 Subsidies for research and development  Subsidies on Capital investments. craftsmen and entrepreneurs of traditional industries including hand-loom industry  Incentives to non-resident Indians who start business concerns of their own  Special incentives to women entrepreneurs  Exemption from paying income-tax  Sales tax exemptions  Interest free sales tax loans  Subsidies for the purchase of laboratory equipments  Loans for industrial housing  Land and building at subsidized rates  Price preference for small scale industries  Subsidies for technical advice  Reduction in stamp duty  Seed capital facilities  Allotting prepared sheds  Making available controlled and subsidized raw materials  Financial assistance for conducting market studies. IMK.Different Types of Government Incentives The central Government or the State Governments or both offer the following incentives to entrepreneurs of small scale industries:  Export-import subsidies and bounties. Alappuzha Page | 17 .  Subsidies for transportation  Interest subsidies  Financial assistance for purchasing power generators  Exemption from property tax  Subsidies to artisans.  Interest free loans.

Bell metal are some of the traditional small-scale industries in India. coir. With 40 percent share in total industrial output and 35 percent share in exports. 1999. The modern small IMK. village industries. This traditional sector in India is considered to have huge growth prospect with its wide range of products. y However the unit in no way can be owned or controlled or ancillary of any other industrial unit.2 SMALL SCALE INDUSTRY IN INDIA Since the time of independence. Initially they were classified into two categories. As per the latest definition which is effective since December 21. An industrial unit can be categorized as a small. Alappuzha Page | 18 .those using power with less than 50 employees and those not using power with the employee strength being more than 50 but less than 100. The definition for small-scale industrial undertakings has changed over time. Khadi and handloom. the small-scale industrial sector in India is acting as Engine of Growth in the new millennium. for any industrial unit to be regarded as Small Scale Industrial unit the following condition is to be satisfied: y Investment in fixed assets like plants and equipments either held on ownership terms on lease or on hire purchase should not be more than Rs 10 million.3. sericulture.scale unit if it fulfills the capital investment limit fixed by the Government of India for the small-scale sector. the small-scale sector in India has been a major contributor to country¶s Gross Domestic Product (GDP). However the capital resources invested on plant and machinery buildings have been the primary criteria to differentiate the small-scale industries from the large and medium scale industries. handicrafts. The traditional units are highly labor consuming with their age-old machineries and conventional techniques of production resulting in poor productivity rate whereas the modern small-scale units are much more productive with less manpower and more sophisticated equipments. The traditional small-scale industries clearly differ from their modern counterparts in many respects.

mechanical engineering items. leather products. glass and ceramics. plastic products. stationery items and clocks and watches. fishing hook etc to more sophisticated items like television sets. electrical items. The small-scale sector has grown rapidly over the years. Alappuzha Page | 19 . Modernization has widened the list of products offered by this industry. instruments. electronics control system. automobile parts. hardware. sports goods. When the performance of this sector is viewed against the growth in the manufacturing and the industry sector as a whole. bicycle parts.industries offer a wide range of products starting from simple items like hosiery products. transport equipment.87 million units in the year 1980-81 to over 3 million in the year 2000. It contributes almost 40% of the gross industrial value added in the Indian economy. electronic components and equipments. The items manufactured in modern Small-scale service & Business enterprises in India now include rubber products.  To mobilize capital investment and entrepreneurship skills The small-scale industries play a vital role in the growth of the country. The growth rates during the various plan periods have been very impressive.62 million worth of goods or services with an approximate value addition of ten percentage points. of investment in fixed assets in the small scale sector produces 4. It has been estimated that a million Rs. Since independence the Government of India has nurtured this sector with special care with the following aims:  To develop this sector as a major source of employment  To encourage decentralized industrial expansion  To ensure equitable distribution of income. it instills confidence in the resilience of the small-scale sector. The number of small-scale units has increased from an estimated 0. IMK. chemical products. various engineering products especially as ancillaries to large industrial undertakings. Nowadays Indian small-scale industries (SSIs) are mostly modern small-scale industries. garments.

1 9. The next two industry groups were Non-metallic mineral products with employment of 0.7 8. providing employment to 0.0 9. Paper products & printing.48 million persons (13. In Chemicals & chemical products.90 P. Repair services and Rubber & plastic products.0 5. It has been estimated that 100. tobacco & tobacco products mainly due to the high employment potential of this industry particularly in Maharashtra. Rajasthan.1%). Assam and Tamil Nadu.1 10. next only to Agriculture. Per Unit Employment Per unit employment was the highest (20) in units engaged in beverages.1 9. Generation of Employment .1 * * * * Achievement 3.000 rupees of investment in fixed assets in the small-scale sector generates employment for four persons.1 11. Basic Metal Industries. Hosiery & garments.4 11.45 million persons (12.0 7. In all other industries the contribution was less than 5%.Industry Group-wise Food products industry has ranked first in generating employment.Year 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 (P) Target 3.3 8. Wood products.43 7.2%) and Metal products with 0.37 million persons (10. Machinery parts except Electrical parts.6 7.2%). Alappuzha Page | 20 .1 5. IMK. the total contribution by these eight industry groups being 49%.Projected (April-December) * Target not fixed at constant prices Employment SSI in India creates largest employment opportunities for the Indian populace. the contribution ranged from 9% to 5%. Andhra Pradesh.16 8.

Non-metallic mineral products and Basic metal industries per unit employment was higher in rural areas as compared to metropolitan areas/urban areas. State-wise Employment Distribution Tamil Nadu (14. In metropolitan areas the leading industries were Metal products. Food Products and Metal Products almost equally shared 22.6%).7%. IMK. Wood Products and Chemicals and chemical products shared between them 17. Basic metal industries (13) and Non-metallic mineral products (12). Non-metallic mineral products (14. This was followed by Maharashtra (9.7%). Machinery and parts except electrical and Paper products & printing (total share being 33. in Chemicals & chemical products. Location-wise Employment Distribution . Urban As for urban areas.1%.4 was in Repair services line.Rural Non-metallic products contributed 22. Per unit employment was the highest (10) in metropolitan areas and lowest (5) in rural areas. tobacco products (31 persons) followed by Cotton textile products (18). Food Products accounted for 21.) The lowest figure of 2. Uttar Pradesh (9.2% of employment. and Chemicals & chemical products between them accounted for 26. Basic metal industries (13.7% to employment generated in rural areas. Alappuzha Page | 21 .5%) made the maximum contribution to employment.5%) and West Bengal (8. Machinery parts except electrical. In urban areas highest employment per unit was in Beverages.Cotton textile products (17).6) and Electrical machinery and parts (11.5%) the total share being 27.8% of employment. Non-metallic mineral products.2. However.5%.1).

17. Year 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 P-Provisional EXPORT SSI Sector plays a major role in India's present export performance. trading houses and export houses.6%).5 165 170.56 152.00 167. The exports from SSI Sector have been clocking excellent growth rates in this decade. It has been mostly fuelled by the performance of garments. Sikkim and Dadra & Nagar Haveli.7%) and Punjab (5.06 139. In all other cases it was around the average of 6.Gujarat (7. It would surprise many to know that non-traditional products account for more than 95% of the SSI exports. Per unit employment was high . 16 and 14 respectively . leather and gems and jewellery units from this Sector.28 3. 45%-50% of the Indian Exports is contributed by SSI Sector Direct exports from the SSI Sector account for nearly 35% of total exports. Alappuzha Page | 22 .58 177. Besides direct exports.0 133.4 150.4%.33 IMK.13 4.88 4. This takes place through merchant exporters. It was 12 in Maharashtra.61 3.0 138.5%). Andhra Pradesh (7. They may also be in the form of export orders from large units or the production of parts and components for use for finished exportable goods.6 144. Tripura and Delhi.6%) together accounted for another 27.38 146.in Nagaland.) 128.50 2.4 Achievement (in lakhs. Madhya Pradesh had the lowest figure of 2. it is estimated that small-scale industrial units contribute around 15% to exports indirectly.20 171.28 5.15 4.) 134.61 160.1 175.3 Growth rate 3. Karnataka (6. Target (in lakhs.

2) 53975 (10.068 (14. (at current prices) Crores) 29.86) 36.61) 43946 (11. Year 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 (P) P-Provisional Exports (Rs.50) 39.249 (7.2) IMK. Alappuzha Page | 23 . are sports goods.470 (25. readymade garments.The product groups where the SSI Sector dominates in exports. The SSI Sector is reorienting its export strategy towards the new trade regime being ushered in by the WTO. plastic products.97) 48979 (10. processed food and leather products. woolen garments and knitwear.

Alappuzha Page | 24 .CHAPTER IV COMPANY PROFILE IMK.

adequate information and publicity. maintenance. management and administration of Industrial Estates and Development plots. This company is actually an amalgam of two former companies namely Kerala State Small Industries Corporation (formed in July 1961) and Kerala Employment Promotion Corporation (formed in 1974). marketing of the SSI products.4.13 crores comprising of 12000 equity shares of Rs. SIDCO was registered as a company on November. Alappuzha Page | 25 .1 COMPANY PROFILE Kerala SIDCO a Promotional Agency wholly owned by Government of Kerala was set up in November. statutory body. advise on import control policy and export promote in procedures marketing and sales of products.02 lakhs. stabilize and run any industrial undertakings projects or enterprise whether owned or run by Government. maintenance of 17 Industrial Estates. resources supply of machinery and equipments on hire purchase procurement and distribution of scarce raw materials. The main objective of the newly formed corporation-which were clearly delineated in the Articles of Association are extracted below: To aid. finance and protect and promote the interests of small industries in the state. distribution of essential raw materials. provision of all infra structural facilities. 1975.1244. set up to promote small scale industries in the state. 1975. This Corporation is rendering assistance to SSI's in the State. revitalization of sick units and rehabilitation of defunct units. Kerala SIDCO. technical and managerial assistance for the prosecution of their work and business. council. construction. We are also running 8 production Units. credit. IMK.1000/. issued subs rived and fully paid up capital is Rs. SIDCO is a fully owned Government corporation. 36 Mini Industrial Estates and undertaking Civil and Electrical works etc. mean. company. a Public Sector Undertaking of the Government of Kerala has four decades of servicing to its credit as a Promotional Agency for Small Scale Industries.each. like providing Infrastructure facilities. firm or individuals by providing them with capital. Moreover Kerala SIDCO is supplying Bitumen to Local Bodies as Nodal Agency and Paraffin Wax to small scale industries. The authorized share capital of the company is Rs. cooperative society. which are undertaking various kinds of jobs works in metal and wood.

establishing and undertaking the development areas and plots. growth centers. SIDCO was assisting the Department of Industries in the implementation of 10000 Industries program. blue-prints. trained experienced and educated members of the public by promoting. investment services and post-investment services and for that purpose to prepare and get or cause to be prepared reports. studies. common facility or service centers or others infra structural works on its own or as agents of Governments or any other body corporate or co-operative society or person. To promote and operate schemes for industrial development and to develop entrepreneurship by providing package consultancy service. Alappuzha Page | 26 . including pre-investment services. semi-skilled. surveys. designs. procedures.To promote employment and entrepreneurship among the skilled. statistics and other information necessary for successful implementation of industrial projects. Functions and Divisions From the very inception of the new company. y y y y y y y y y y y y Technical Consistency Research and Development Entrepreneurs Development Raw material Finance (share participation and margin money loan) Sick unit Revival Import and Export Marketing Machinery Manufacturing Information and publicity Industrial Estate and Infrastructure IMK. SIDCO started in a big way with the following Divisions.

IAS Smt.V Partnerships Facilities for out sourcing parts and components Training to B.S Avenue through J. Saji Basheer Directors y y y y y y C.O.P. Saji Basheer M.T Ahamed Ali Shri. Chairman& Director C.S aspirants and entrepreneurs 4. Alappuzha Page | 27 .SIDCO Objectives y y y y y Development of small Industries in the state by providing Infrastructure facilities Raw material supplies Marketing products of SSI units Promotional activities for SSI products Opportunities open for prospective Business partners Kerala SIDCO y y y y Availability of Industrial land New B.T Ahamed Ali Managing Director Shri. Two members that is the Director and the registrar are from the organization. Renji Shri.T.Sooraj. Sreelakumari Samuel John IMK.2 GOVERNING BODY & EXECUTIVE COMMITTEE Governing body & the executive committee controls the entire organization.

Thiruvananthapuram SUBSIDIARY COMPANIES y y SIDKEL Television Ltd. The company has entered into an exclusive marketing arrangement with KELTRON for the sale of the companies products. Alappuzha Page | 28 . Two members are nominated by Govt. was promoted by SIDCO jointly with KELTRON. The company manufactures both colors and black & white television sets. The factory is located at managers. SIDKEL Television Ltd. SIDCO has contributed 74% of the paid up capital and KELTRON SIDCO has contributed 26%.R. It is a subsidiary company of SIDCO. SIDCO ± MOHAN Kerala Ltd. The company was incorporated in March 1964 and commences its production in January 1985. As per the agreement. SIDCO is to nominate four members on the Board including the chairman and KELTRON two members including M. SIDCO Mohan Kerala Ltd. SIDKEL Television Ltd.D. The company was promoted by SIDCO jointly with Mohan Meakin Ltd in the year 1980. SIDCO is to contribute 51% of the paid up capital and Mohan Meankin 49%. As per the memorandum and article of Association of the company.Legal Advisors Shri.T Pradeep Bankers y y y y y y y State Bank of India State Bank of Tranvancore Syndicate Bank Canara Bank of India Bank of India United Commercial Bank District treasury. IMK.

which is running profitability. The Industrial Estate division which is charged with providing the infrastructure facilities for entrepreneur¶s. and Mohan Meakin $ members including M. while promoting this company. is the Raw material division. Government also stopped giving any budgetary assistance to SIDCO for development activities. SIDCO is presently at the cross roads. IMK. Alappuzha Page | 29 . The construction division finds itself with very little work to do. The only division. When the Dist. directly. the concept of mother unit did not take off As per the memorandum and Articles of Association of the company.D but these two subsidiaries are now in the stage of liquidation. such as maintains of the Industrial Estate in an efficient manner unless there is Governmental assistance or unless some income generating projects are formulated even if the entire entrepreneur¶s occupying all the available shed pay their rents regularly. the income may not be sufficient for the proper unknown of the Estates. cannot perform its functions. and also marketing their products. Industries centers were formed. Since 1980-81. SIDCO is to nominate 5 members including the chairman.The concept envisaged. As the importance of the DICS increased. Now the major promotional activities are being dealt with by the DICS themselves. powers of SIDCO were decentralized and given to the G. was to establish 34 feeder units manufacturing with a ³mother units´ to assist the small units in centralized purchase of raw material. SIDCO¶S activities reduced. The future of the production Division has been under consideration.M¶s of the DICS.

This Division participates in Tenders floated by Government Departments and Public sector Undertakings on behalf of SSI unit to market their products. Kollam.O.O. As requested by us. which are undertaking various kinds of jobs works in metal and woods. 36 mini Estates and doing under take civil works for industries department and Government agencies.(Rt) IMK. Palakkad.10/2005/SPD dated 03. Kozhikode and Kannur. Alappuzha.(Rt) No. of Kerala was set up in November 1975. Manjeri. Ernakulam. Thodupuzha. Kottayam. G. Alappuzha Page | 30 .02.3 IMPORTANT ACTIVITIES OF KERALA SIDCO It is a promotional agency wholly owned by the Govt. maintains of 17 industrial estates.4. Ollur. Besides there are seven marketing centers at Thiruvalla. Wayanad and Kasaragod. SIDCO participates in exhibitions and Trade Fairs on behalf of SSI sector to promote them by displaying SSI products. This corporation is rendering to SSI in the state. At present the important activities of SIDCO are distribution of raw material to SSI units.05 permitted them to supply Hospital Furniture/Lab Equipments etc to Government Departments/ Public Sector Undertakings and Local Bodies without tender. production units. Similarly as per G. We are also running. The Marketing Division is now having seven sales emporia at Thiruvananthapuram. Marketing of SSI products. y y y y y y y MARKETING DIVISION RAW MATERIAL DIVISION PRODUCTION DIVISION CONSTRUCTION DIVISION INDUSTRIAL ESTATE DIVISION INDUSTRIAL PARKS TRAINING PROGRAMS MARKETING DIVISION Marketing Division of SIDCO provides assistance to Small Scale Units in canvassing orders from Government and other Public Sector Undertakings by way of Contract Marketing and Tender Marketing.

IMK. Tubes. Municipalities. Thiruvananthapuram. Sodium Vapour Lamps. During the year 2004-2005 Marketing Division achieved a turnover of Rs. Steps have also been taken for marketing of SSI products through SIDCO with a common branding proposed by Kerala State Small Industries Association. Hospital Furniture and Laboratory Equipments. Plastic products.01. SIDCO is working hand in hand with the Kerala state Small Industries Association and SIDCO Suppliers Association for the development of the SSI sector in Kerala. Corporations and Other Public Sector Undertakings. As SIDCO is a promotional agency.05 SIDCO is supplying Wooden Furniture and Other Furniture respectively without participating tender. Alappuzha Page | 31 . Electrical Products in addition to Wood.16 crores. Palakkad etc are some of the prestigious works undertaken by Marketing Division during the previous year. SIDCO is supplying electrical items such as CFL. Steel. The main items selected are food products.No. the products of SSI units should be marketed through SIDCO.8/2005/SPD dated 24. The interior decoration work of the High Court of Kerala. Modular seating arrangements in Government Secretariat. Work under MGP at Malappuram Collectorate and Furnishing work at Government Guest House. supply of Furniture and Hospital equipments to Government Medical College. Leather and Rubber. Thissur. Tube Fittings etc to Panchayaths.

Malappuram Mini Industrial Estate. Sales Emporia Location 1 2 3 4 5 6 7 Thiruvananthapuram Kollam Kottayam Thodupuzha Ernakulam Kannur Kozhikode Spencer Junction. Alappuzha Industrial Estate.G Road. Sulthan Bathery. Palakkad Industrial Estate. Manjeri. Thodupuzha M. Avalukunnu. Olvakkode.SIDCO SALES EMPORIA & MARKETING CENTRES Table No. Thrissur Industrial Estate. Ollur. Thiruvalla East of Asramam jun. Alappuzha Page | 32 . Kollam Nagampadam. Vidya Nagar. Marketing Centers Location 1 2 3 4 5 6 7 Thiruvalla Alappuzha Thrissur Palakkad Malappuram Wayanad Kasargod Opposie govt hospital. Idukki Road. Thiruvananthapuram Municipal Stadium building. Wayanad Industrial Estate. 2 Marketing Centers Sl no. 1 Sales Emporia Sl no. West hill. Ernakulam. Kottayam Near Fire Station. Kannur Industrial Estate. Kochi Municipal Shopping complex. Kasargod IMK. Kozhikode Table No.

Aluminum sheet and Petroleum products like Lubricants. Steps for setting up of Residential Flats on joint venture basis in the vacant land of SIDCO Auto Engineering unit at pachalam are also under way. Plastic granules. Cement. Kerala SIDCO is also appointed as the agency for distribution of Bitumen to the Local Bodies vide G. We have also a proposal for setting up of our own steel stockyard at SIDCO. Gandhi Nagar. undertake precision machinig jobs.2 crores for the Import of Paraffin wax under the Japanese Debt Relief Grant Assistance Scheme. Pappananmcode. Cash Chests. Paraffin wax.03 by the Govt of Kerala.O (P) NO. IMK. all kinds of Timber partition works. Fixtures etc. One of the unit namely Service Workshop. another unit at Umayannalloor ie. Alappuzha Page | 33 . The Pressure Die-Casting Unit.RAW MATERIAL DIVISION Raw Materials Division is engaged in the distribution of various raw materials to the SSI sector and public sector undertakings in Kerala through the district Raw material depots in each district. Government Departments can purchase various furniture and equipments from our Production units without observing Tender formalities. Coal India Limited nominated Kerala SIDCO as an agency for the distribution of coal amongst small consumers in the state with the annual requirement of 24000 tonnes. Trivandrum manufacture Pressure Die. Leveling instruments etc. G. and Kochi for the benefit in. 4 units undertake manufacture of wooden furniture.I. We are also having a plan for establishing a high Tech Industrial Park in the vacant land available at Raw material division premises on joint ventures basis.Cast Components.05. Kerala. Rubber process Oil and Bitumen. dies. All units are depending on job works. One unit namely Government instrument Workshop undertake the manufacture of Steel furniture. Dies.88120021LSGD dated. PRODUCTION DIVISION At present 8 Production units are functioning. Our distribution includes Iron and steel. fixtures etc. if possibility of raising funds is there for this. 31. The Govt of India has sanctioned Rs. Ollur undertake all type of Steel Fabrication works. SIDCO tools. pipes. We are trying for find out the small manufacturing firms which wish to market their products through SIDCO and nourish their business supply to the Government organization such a planning is in the preliminary stage. Titanium Dioxide.

Government Secretariat. SIDCO is the Nodal Agency for implementing infrastructure facilities for Development Plot. Alappuzha Municipality. INDUSTRIAL ESTATE DIVISION Kerala SIDCO owns 17 Conventional Industrial Estates and 36 Mini Industrial Estates which are functioning in different Districts of Kerala. This division is a full-fledged division headed by a Chief engineer with Architects. Civil and Electrical Engineers. Hire Purchase basis and Out Right Purchase basis. Development areas and Construction of Multistoried buildings and other factory buildings for industries Department and other sister concerns. Kerala State Poultry Development Corporation. Industrial Plots are being allotted to the entrepreneurs in Industrial Estates. Mini Industrial Estates and Industrial Parks for constructing factory sheds of their own design to run industrial units. Considering the importance of Small Scale Industries. A very few sheds are vacant for allotment preferably on Out Right Purchase basis.CONSTRUCTION DIVISION The Construction Division offers a package of integrated services for the design.The mode of arrangement and those works are as per the rules and regulations laid down by Kerala Public Works Department. Rajiv Gandhi Centre for Bio-Technology. Our clients are Industries Directorate. Foam Mattings. and those works are carried out through the Construction Division . execution and management for various types of Civil and Electrical Works. In addition to these factory sheds. Tourism Department. Serified. There are 920 factory sheds in which more than 750 SSI units are functioning. Coir Corporation. as part of Government Policy. The above said factory sheds were allotted on Lease basis. the scheme for setting up of One Industrial Park in each of the 140 Assembly Constituencies of the State is being implemented by SIDCO IMK. Alappuzha Page | 34 . Pollution Control Board. Kerala Khadi and Village Industries Board. There is a network of Engineers throughout the State and the Division has built up considerable expertise and experience in the field of Civil and Electrical works of major projects for the past 35 years.

We have succeeded in establishing Industrial Parks at Athani in Thrissur District. We have succeeded in allotting 530 cents of land in the above Industrial Parks on 90 years lease scheme to Industrialists. Around 27 Acres of developed is available in the above Parks for allotment. Angamaly in Eranakulam District. Land is allotted on 90 years saleable lease.Table No. Allotment is being made by Quotation cum Auction. Alappuzha Page | 35 . 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Name of Industrial Estates Pappanamcode Umayanalloor Karunagapally Kollakadavu Cherthala Changanacherry Ettumanoor Palluruthy Mudickal (Perumbavur) Kallettumkara (Iringalakuda) Ollur Karakkad (Shornur) Olavakkode Manjeri West Hill Palayad (Thalassery) Kasargod District Trivandrum Kollam Kollam Alappuzha Alappuzha Kottayam Kottayam Ernakulam Ernakulam Thrissur Thrissur Palakkad Palakkad Malappuram Kozhikode Kannur Kasargod INDUSTRIAL PARKS SIDCO is entrusted with the scheme of establishing one Industrial Park in each Legislature Assembly Constituency. Shornur in Palakkad District and Moodadi in Kozhikode District and Thiruvarpu in Kottayam. Steps are underway to develop land in Industrial Parks at Kunnamthanam in Pathanamthitta District and Chelakkara in Thrissur District . No. IMK. 3 SIDCO Industrial Estates Sl.New areas are being identified in other constituencies.

modernization of office. Government of India for setting up joint ventures in the state.for the Government Departments/Agencies. SIDCO has formed an Information cell with the Managing Director as appellate authority.Governance. office Automation.IMPORT and EXPORT DIVISION SIDCO has recently formed a new division called Import and Export Division attached to the Marketing Division at Kochi with a view to give all possible assistance to the SS Sector by functioning as the canalizing Agent for the SSI units in kerala both for their raw material import and product export. smart card development. SIDCO has entered in to MOU with M/s. Alappuzha Page | 36 . Statewide Area Network. IMK. SIDCO consortium for Automobile Body Building SIDCO is planning to form a consortium of Automobile Body Building units in the state under its leadership to promote this Industry in the state by canvassing orders for bus body building from the Government Departments/Public sector undertakings/local bodies RIGHT TO INFORMATION Under the Right to Information Act. Areas identified under this project are E. Indian Telephone Industries a premier PSU under the Ministry & Communication. as directed by the Government. state of art Telecommunication and communication Park Micro Documentation etc. IT and TELECOMMUNICATION DIVISION Kerala SIDCO has recently formed a new division called Information Technology and Telecommunication Division for expanding its area of business operations to the field & Information Technology and Telecommunication. The division has already initiated action for setting up a Telecom-city in Thiruvananthapuram joining hands with ITI.

Thiruvananthapuram MGP project at Malappuram collectorate. Supply of Medical Equipments & Furniture at Medical College. SIDCO contribution to the National space Program leading to the Development of PSLV was appreciated by ISRO.SUPER CHECK CELL A super check cell is formed with the vigilance officer as the conener to conduct super check cell of the articles supplied by Marketing Division and Production units with a view to avoid quality complaints. Palakkad. Thrissur Furnishing works at Government Guest House. Alappuzha Page | 37 . Prestigious Projects Undertaken Interior decoration of court halls of High court of kerala Modular seating at Government Secretariat. y y y y y IMK. Milestones in last 30 years Year 1975 1982 1986 significance KSSIC was reconstituted as SIDCO to serve the small scale Industries Imported cement to meet the crisis in the construction sector in Kerala SIDCO consortium implemented Bus Body Building project for KSRTC 1990 Supplies made to Education Department under operation Black Board Scheme of Government of Kerala 1997 1998 Development of Industrial Parks.

BUISNESS PROPOSALS TO INVESTORS y y y Technology up gradation and modernization of SSI units/production units. Setting up of High Tech Industrial Parks of International Standard in SIDCO¶s Sites. Alappuzha Page | 38 . y Setting up of advanced study centers exclusively for industrial entrepreneurs IMK. Investment in Infrastructure development on SIDCO's Industrial Plots.

CHAPTER ± V DATA ANALYSIS & INTERPRETATIONS IMK. Alappuzha Page | 39 .

4 Sl. Table No.10 years.DATA ANALYSIS & INTERPRETATIONS 1. Registered under Kerala SIDCO. 20% of the respondents are registered between 10 ± 15 years. 30% of respondents are registered between 5 . no 1 2 3 4 Opinion 0 ± 5 years 5 ± 10 years 10 ± 15 years Above 15 years Total No. The remaining 6% is above 15 years. of respondents 22 15 10 3 50 Percentage 44 30 20 6 100 Registration 6% 20% 44% 0 5 years 5 10 years 10 15 years Above 15 years 30% Figure No. Alappuzha Page | 40 . IMK.1 INTERPRETATION It is clear from the above table that majority of the respondents are registered below 5 years that is 44%.

IMK. no 1 2 3 4 Opinion Quality Price Transportation Others Total No. Factors considered in selecting the source of raw materials Table No.2 INTERPRETATION From the survey conducted it can be found that all factors like quality. price. transportation and even other means are also considered in selecting the source of raw materials. Alappuzha Page | 41 .5 Sl.2. of respondents 40 5 0 5 50 Percentage 80 10 0 10 100 Selection of Raw Materials 0% 10% 10% Quality Price Transportation Others 80% Figure No.

no 1 2 3 Opinion Yes No Sometimes Total No. Purchase of raw material from external agency Table No. IMK. Alappuzha Page | 42 .6 Sl.3. of respondents 32 6 12 50 Percentage 64 12 24 100 Source of Raw Materials 24% Yes No 12% 64% Sometimes Figure No.3 INTERPRETATION From the survey conducted it can be found that the materials are purchased from external agency.

of respondents 38 5 7 50 Percentage 76 10 14 100 Delivery by suppliers 14% 10% Yes No Sometimes 76% Figure No. Alappuzha Page | 43 .4. Delivery of materials by the suppliers Table No. no 1 2 3 Opinion Yes No Sometimes Total No.4 INTERPRETATION From the survey conducted it can be found that the suppliers are delivering the raw materials in time.7 Sl. IMK.

IMK.5 INTERPRETATION From the survey conducted it can be found that the purchase department in SIDCO won¶t change their supplier frequently. Alappuzha Page | 44 .5. no 1 2 3 Opinion Yes No Sometimes Total No. of respondents 7 40 3 50 Percentage 14 80 6 100 Changing of suppliers 6% 14% Yes No Sometimes 80% Figure No. Frequent change of suppliers Table No.8 Sl.

IMK. Rate contract with the supplier Table No. no 1 2 3 Opinion Yes No Sometimes Total No.6.6 INTERPRETATION From the survey it can be understood that they have rate contract with the suppliers.9 Sl. of respondents 42 0 8 50 Percentage 84 0 16 100 Rate Contract 0% 16% Yes No Sometimes 84% Figure No. Alappuzha Page | 45 .

7 INTERPRETATION From the survey conducted it can be found that SIDCO used to call for quotation from suppliers before choosing a supplier IMK.10 Sl. of respondents 36 4 10 50 Percentage 72 8 20 100 Selection of Supplier 20% Yes 8% No Sometimes 72% Figure No. no 1 2 3 Opinion Yes No Sometimes Total No.7. Call for quotations from suppliers before choosing them Table No. Alappuzha Page | 46 .

11 Sl. IMK. of respondents 45 0 5 50 Percentage 90 0 10 100 Material Inspection 0% 10% Yes No Sometimes 90% Figure No. Inspection of material for quality and quantity Table No.8 INTERPRETATION From the survey conducted it can be found that the material purchased is inspected for quality and quantity most of the time. no 1 2 3 Opinion Yes No Sometimes Total No. Alappuzha Page | 47 .8.

Purchases made when there is quantity or price discount. Table No.12 Sl. no 1 2 3 Opinion Yes No Sometimes Total No. Alappuzha Page | 48 . IMK. of respondents 28 12 10 50 Percentage 56 24 20 100 20% Yes No 56% 24% Sometimes Figure No.9 INTERPRETATION From the survey conducted it can be found that the SIDCO makes bulk purchases when there is quantity and price discount.9.

10 INTERPRETATION From the survey conducted it can be found that the purchasing policy is centralized. Table No. no 1 2 Opinion Centralized Localized Total No. of respondents 39 11 50 Percentage 78 22 100 Purchase Policy 22% Centralized Localized 78% Figure No. IMK. Alappuzha Page | 49 .13 Sl. Purchasing policy centralized or localized.10.

no 1 2 3 Opinion Frequently Rarely Never Total No. Returning of material due to not meeting of specification Table No.11 INTERPRETATION From the survey conducted it can be found that the materials from the supplier not according to the required specification are rarely returned to the supplier.14 Sl.11. of respondents 10 20 20 50 Percentage 20 40 40 100 Material Specification 20% 40% Frequently Rarely Never 40% Figure No. Alappuzha Page | 50 . IMK.

12. no 1 2 3 Opinion Yes No Sometimes Total No. Alappuzha Page | 51 . Checking and passing of bills for payment of purchased materials Table No.15 Sl. of respondents 38 6 6 50 Percentage 76 12 12 100 Payment of Bill 12% 12% Yes No Sometimes 76% Figure No. IMK.12 INTERPRETATION From the survey conducted it can be found that the checking and passing of bills for payment of purchased materials are done mostly.

of respondents 30 6 14 50 Percentage 60 12 22 100 28% Yes No Sometimes 60% 12% Figure No.13. IMK. Receives finished goods on time from SSI units Table No. Alappuzha Page | 52 . no 1 2 3 Opinion Yes No Sometimes Total No.13 INTERPRETATION From the survey conducted it can be found that the SSI units are supplying the finished products on time.16 Sl.

of respondents 40 0 10 50 Percentage 80 0 20 100 Customer Orders 20% 0% Yes No Sometimes 80% Figure No. IMK.17 Sl. Alappuzha Page | 53 .14. Supply of customer orders on time Table No.14 INTERPRETATION From the survey conducted it can be found that Kerala SIDCO is supplying the orders on time to their customers. no 1 2 3 Opinion Yes No Sometimes Total No.

18 Sl.15 INTERPRETATION From the survey conducted it can be found that the purchasing department receives regular requirements from the store keeper for purchasing. IMK. no 1 2 3 Opinion Yes No Sometimes Total No. Requirements from the store keeper for purchasing Table No. of respondents 28 8 14 50 Percentage 56 16 28 100 28% Yes No Sometimes 56% 16% Figure No. only 16% of respondents feel never and 28% of them feel sometimes. Alappuzha Page | 54 .15.

Proper purchasing reduces inventory carrying cost Table No. of respondents 38 6 6 50 Percentage 76 12 12 100 Inventory Carrying Cost 12% 12% Yes No Sometimes 76% Figure No.16. no 1 2 3 Opinion Yes No Sometimes Total No.16 INTERPRETATION From the survey conducted it can be found that the proper purchasing reduces inventory carrying cost. IMK. Alappuzha Page | 55 .19 Sl.

17.17 INTERPRETATION From the survey conducted it can be found that Kerala SIDCO analyzes different transportation facilities so as to reduce transportation cost. of respondents 25 5 20 50 Percentage 50 10 40 100 Analysis of Transportation Facility 40% 50% Yes No Sometimes 10% Figure No. Table No. no 1 2 3 Opinion Yes No Sometimes Total No.20 Sl. Analyzing different transportation facilities so as to reduce transportation cost. IMK. Alappuzha Page | 56 .

Availability of sufficient storage space Table No.18. of respondents 16 10 24 50 Percentage 32 20 48 100 Storage Space 32% 48% Yes No Sometimes 20% Figure No.21 Sl. no 1 2 3 Opinion Yes No Sometimes Total No. IMK.18 INTERPRETATION From the survey conducted it can be found that the firm provides sufficient storages space as and when required. Alappuzha Page | 57 .

19 INTERPRETATION From the survey conducted it can be found that the department has ever faced the risk of running over of stock. no 1 2 3 Opinion Yes No Sometimes Total No. of respondents 30 10 10 50 Percentage 60 20 20 100 Over of Stock 20% Yes No Sometimes 20% 60% Figure No. Risk of running over of stock Table No.19.22 Sl. Alappuzha Page | 58 . IMK.

Alappuzha Page | 59 . of respondents 37 3 10 50 Percentage 74 6 20 100 Purchase Budget 20% Yes 6% No Sometimes 74% Figure No.23 Sl.20 INTERPRETATION From the survey conducted it can be found that the organization provides a particular purchase budget. no 1 2 3 Opinion Yes No Sometimes Total No. IMK.20. Purchase budget Table No.

SUGGESTIONS & CONCLUSION IMK. Alappuzha Page | 60 .CHAPTER ± VI FINDINGS.

Purchase department in SIDCO won¶t change their suppliers frequently. We can understand that they have rate contract with the supplier We can understand that SIDCO used to call for quotation from supplier before choosing a supplier. price and transportation are considered in selecting the source of raw material. y y y y y In SIDCO the material are purchased from external agency. Alappuzha Page | 61 . y We can get the information that the proper purchasing reduces inventory carrying cost.FINDINGS y In SIDCO. the checking and passing of bills for payment of purchased materials are done in time almost always. y We can obtain the information that the purchasing department before making any purchase considers the requirement of the entire department. all factors like quality. y It can be found that the firm provides sufficient storage space as and when required. IMK. The materials are delivered in time from the supplier in SIDCO. y y Purchasing policy is centralized in SIDCO In SIDCO. y The material purchased is inspected for quality and quantity most of the time from the survey conducted in SIDCO.

y The whole purchase department can be computerized to make the processing fast. y y y Discounts in terms of price and quantity should be properly utilized. Alappuzha Page | 62 . Inventory cost can be reduced by making purchases at proper intervals. Careful utilization of raw material is essential to avoid wastage. Appoint more employees to make the work easy. Management decisions relating to purchases should also be considered. Proper planning is essential in SIDCO which minimizes risk Material received should be tested for quality specification Products should be produced for all required consumers other than government institutions. y y y y y y y Financial losses during delivery of material should be reduced.SUGGESTIONS y Transportation cost of material can be reduced by choosing appropriate method of transportation. The relationship with the suppliers can be improved by conducting frequent meeting with the suppliers y A planned budget should be made every financial year for the purchase department. IMK.

Alappuzha Page | 63 . The purchase policy adopted by SIDCO is satisfactory from the study. Only very few disadvantages could be found out from the study. The limitations of the study don¶t provide more in-depth study. SIDCO holds a good position among government organization in Kerala. IMK.CONCLUSION The study was to analyze the effectiveness of purchasing system in SIDCO.

APPENDIX IMK. Alappuzha Page | 64 .

Designation: 5. The information given by you will be kept confidential and will not be used for any other purpose. Age : 4. I am doing a study on the ³PURCHASING SYSTEM ADOPTED BY SIDCO´ as a part of my MBA course. Will you make bulk purchases when there is quantity and price discount? [ ] Yes [ ] No [ ] Sometimes 15. What are the factors considered in selecting the source of raw materials? [ ] Quality [ ] Price [ ] Transportation [ ] others 8. Do you have any rate contract with the suppliers? [ ] Yes [ ] No [ ] Sometimes 12. Will you change your supplier frequently? [ ] Yes [ ] No [ ] Sometimes 11. Is the purchasing policy centralized or localized? [ ] Centralized [ ] Localized IMK. So I request you to co-operate with this venture by giving valuable information. Name of the Proprietor: 3. Education qualification: 6. 1.TO EVALUATE AND STUDY THE PURCHASING SYSTEM ADOPTED BY SIDCO Sir/Madam. How long you have been registered with Kerala SIDCO? [ ] 0 ± 5 years [ ] 5 ± 10 years [ ] 10 ± 15 years [ ] above 15 years 7. Alappuzha Page | 65 . Do you purchase raw materials from external agency? [ ] Yes [ ] No [ ] Sometimes 9. Does the materials purchased is inspected for quality and quantity? [ ] Yes [ ] No [ ] Sometimes 14. Do you receive materials from suppliers in time? [ ] Yes [ ] No [ ] Sometimes 10. Do you call for quotation from suppliers before choosing a supplier? [ ] Yes [ ] No [ ] Sometimes 13. Name of the SSI unit: 2.

Have you ever returned the materials to the suppliers which are not according to the required specification? [ ] Frequently [ ] Rarely [ ] Never 17. Does the checking and passing of bills for payment of purchased materials are done in time? [ ] Yes [ ] No [ ] Sometimes 18. Does your organization provide purchase budget? [ ] Yes [ ] No [ ] Sometimes Yours faithfully Manu. does the requirements of all the departments are considered? [ ] Yes [ ] No [ ] Sometimes 22.16. Does proper purchasing reduces inventory carrying cost? [ ] Yes [ ] No [ ] Sometimes 23. Before making a purchase. Do you receive the finished goods from SSI units on time? [ ] Yes [ ] No [ ] Sometimes 19.M IMK. Do you analyze different transportation facilities so as to reduce transportation cost? [ ] Yes [ ] No [ ] Sometimes 24. Alappuzha Page | 66 . Does your department have ever faced the risk of running over of stock? [ ] Yes [ ] No [ ] Sometimes 26. Do you receive regular requirements from the store keeper for purchasing? [ ] Yes [ ] No [ ] Sometimes 21. Are you provided with sufficient storage space? [ ] Yes [ ] No [ ] Sometimes 25. Do you supply the materials to the customers on time? [ ] Yes [ ] No [ ] Sometimes 20. Alappuzha IMK.

4th edition. Publishers. New Delhi. Kotler Philip. Methods & techniques´. New Delhi.com 3.keralasidco. www. Namakumari ³ Marketing Management´ third edition. ³Research Methodology. 2nd Edition. New Age International (P) Ltd. Wiley India (P) Ltd.BIBLIOGRAPHY BOOKS 1. ³Marketing Management´. V. 4.google.S Ramaswamy & S. COMPANY MANUAL 2. Alappuzha Page | 67 . a skill building approach´. Umasekaran ³Research methods for business. (2000).R. (2004). 2. Kothari. 12th edition. C.com IMK. www. Pearson Education. 3.com 2. (2007). READING MATERIALS 1.wikipedia. MAGAZINES WEBSITES VISITED 1. www.

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