INDUSTRY PROFILE

Cotton
Cotton is a soft, staple fiber that grows around the seeds of the cotton plant. It is a natural fiber
harvested from the cotton plant. The fiber most often is spun into yarn or thread and used to
make a soft, breathable textile, which is the most widely used natural-fiber cloth in clothing
today.
Processing of Cotton in India
In India the raw cotton, also called as Kapas is processed in a multi-stage process described as
below. The Products of processing are
I.

Yarn.

II.

Cottonseed Oil.

III.

Cottonseed Meal.
I. Production of Yarn
KAPAS TO LINT: Kapas (also known as raw cotton or seed cotton) is unginned cotton or the
white fibrous substance covering the seed that is obtained from the cotton plant. The first step in
the process is, the cotton is vacuumed into tubes that carry it to a dryer to reduce moisture and
improve the fiber quality. Then it runs through cleaning equipment to remove leaf trash, sticks
and other foreign matter. In ginning a roller gin is used to grab the fiber. The raw fiber, now
called lint.
LINT TO BALE: The lint makes its way through another series of pipes to a press where
it is compressed into bales (lint packaged for market). After baling, the cotton lint is
hauled to either storage yards, textile mills, or shipped to foreign countries.
NOTE: The cotton seed is delivered to a seed storage area from where it is loaded into trucks and
transported to a cottonseed oil mill.
BALE TO LAP: Here the bales are broken down and a worker feeds the cotton into a machine
called a "breaker" which gets rid of some of the dirt. From here the cotton goes to a "scutcher".
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(Operated by a worker also called a scutcher). This machine cleans the cotton of any remaining
dirt and separates the fibers. The cotton emerges in the form of thin "blanket" called the "lap".
LAP TO CARDING: Carding is the process of pulling the fibers into parallel alignment to form
a thin web. High speed electronic equipment with wire toothed rollers perform this task. The
web of fibers is eventually condensed into a continuous, untwisted, rope-like strand called a
sliver.
SILVER TO ROVING: The silver is then sent to combing machine. Here, the fibers shorter
than half-inch and impurities are removed from the cotton. The sliver is drawn out to a thinner
strand and given a slight twist to improve strength, then wound on bobbins. These Process is
called Roving.
ROVING TO YARN (SPINNING) : Spinning is the last process in yarn manufacturing.
Spinning draws out the short fibres from the mass of cotton and twists them together into a long.
Spinning machines have a metal spike called a spindle which the thread winds around.
II. Production of Cotton Seed Oil
Processing of cottonseed in modern mills involves a number of steps. They are as follows:

The first step is its entry into the shaker room where, through a number of screens

and air equipment, twigs, leaves and other trash are removed.

The cleaned seed is then sent to gin stands where the linters are removed from the

seed (delinted). The linters of the highest grade, referred to as first-cut linters are used in
manufacturing non-chemical products, such as medical supplies, twine, and candle wicks. The
second-cut linters removed in further delinting steps, are incorporated in chemical products,
found in various foods, toiletries, film, and paper.

The delinted seeds now go to the huller. The huller removes the tough seed coat

with a series of knives and shakers. The knives cut the hulls (tough outer shell of the seed) to
loosen them from the kernels (the inside meat of the seed, rich in oil) and shakers separate the
hulls and kernels.

The kernels are now ready for oil extraction. They pass through flaking rollers

made of heavy cast iron, spinning at high speeds. This presses the meats into thin flakes. These
flakes then travel to a cooker where they are cooked at 170 degrees F to reduce their moisture
levels. The prepared meats are conveyed to the extractor and washed with hexane (organic
solvent that dissolves out the oil) removing up to 98% of the oil.

Crude cottonseed oil requires further processing before it may be used for food.

The first step in this process is refining. With the scientific use of heat, sodium hydroxide and a
centrifuge (equipment used to separate substances through spinning action), the dark colored
crude oil is transformed into a transparent, yellow oil. This clear oil may then be bleached with a
special bleaching clay to produce a transparent, amber colored oil.
The refined cotton seed oil has several advantages other than edible oils. It contains mere
advantage over other edible oils. It contains a large percentage of Poly Unsaturated Fatty Acids
(PUFA) which maintain cholesterol in the blood at a healthy level.
The quality of cotton oil depends on the weather prevailing during the time that cotton stands in
the fields after coming to maturity. Hence quality of oil varies from place to place and season to
season. The quality of oil is high in dry seasons and low when the seed is exposed to wet weather
in the fields or handled or stored with high moisture. Further cotton seed cooking oil has a long
span of life due to the presence of vitamin E.
III. Production of Cottonseed Meal/Cake/Kapaskhalli

Kapaskhalli (cottonseed extraction/meal) is a byproduct of the cottonseed

industry.

Cottonseed is a by-product of the cotton plant, which is primarily grown for its

fiber. Although cotton has been grown for its fiber for several thousand years, the use of
cottonseed on a commercial scale is of relatively recent origin.

Cottonseed was a raw agricultural product, which was once largely wasted. Now

it is being converted into food for people; feed for livestock; fertilizer and mulch for plants; fiber

for furniture padding; and cellulose for a wide range of products from explosives to computer
chip boards.
The figure showing the products obtained from processing the raw cotton:
Diagram 2.1

Source: The Cotton Corporation of India Ltd.

Cotton Varieties in India

Bengal Deshi mainly produced in the states of Punjab, Haryana, Rajasthan.

Jayadhar mainly produced in the state of Karnataka.

Bunny (or) Brahma is mainly produced in the states of Maharashtra, Madhya

Pradesh, Andhra Pradesh, Karnataka.

Suvin is another variety produced in the state of Tamil Nadu.

H-4 (or) MECH1 is mainly produced in the states of Maharashtra, Madhya

Pradesh, Andhra Pradesh.

Role of Cotton Industry in Indian Economy
Over the years, country has achieved significant quantitative increase in cotton production. Till
1970s, country used to import massive quantities of cotton in the range of 8.00 to 9.00 lakh bales
per annum.

However, after Government launched special schemes like intensive cotton

production programmes through successive five-year plans, that cotton production received the
necessary impetus through increase in area and sowing of Hybrid varieties around mid 70s.

Since then country has become self-sufficient in cotton production barring few years in the late
90s and early 20s when large quantities of cotton had to be imported due to lower crop
production and increasing cotton requirements of the domestic textile industry.
Cotton production Areas in India
India is an important grower of cotton on a global scale. It ranks third in global cotton production
after the United States and China; with 9.50 million hectares grown each year, India accounts for
approximately 21% of the world's total cotton area and 13% of global cotton production. The
Cotton producing areas in India are spread throughout the country. But the major cotton
producing states which account for more than 95% of the area under and output are:
1.

Punjab.

2.

Haryana.

3.

Rajasthan.

4.

Maharastra.

5.

Gujarat.

6.

Madhya Pradesh.

7.

Andhra Pradesh.

8.

Tamil Nadu.

9.

Karnataka.

Of the nine cotton producing States in India, average yields are highest in Punjab where most of
the cotton area is irrigated.
But the yields of cotton in India are low, with an average yield of 503 kg/ha compared to the
world average of 734 kg/ha. The problem is also compounded by higher production costs and
poor quality in terms of varietals purity and trash content.
However the Cotton plays an important role in the National economy providing large
employment in the farm, marketing and processing sectors. Cotton textiles along with other
textiles also contribute about 1/3rd of the Indian exports.
Contribution of Cotton industry for Textile Industry

Cotton is the most important raw material for India's Rs. 1,50,000 crores textile industry, which
accounts for nearly 20% of the total national industrial production.
The cotton Industry is the backbone of our textile industry, accounting for 70% of total fiber
consumption in textile sector. It also accounts for more than 30% of exports, making it India's
largest net foreign exchange industry. India earns foreign exchange to the tune of $10-12 billion
annually from exports of cotton yarn, thread, fabrics, apparel and made-ups.
The cotton Industry provides employment to over 15 million people. And the area under cotton
cultivation in India (9.5 million ha) is the highest in the world, i.e., 25% of the world area.
Steps taken by the Cotton Producers in India
Now-a-days the Indian Cotton producers are continuously working to up-grade the quality and
increase the cotton production to cope up with the increased global demand for cotton textiles
and to meet the needs of the 39 million spindles capacity of the domestic textile industry which
presently consumes about 12-14 million bales annually.
In India, cotton yields increased significantly in the 1980s and through the first half of 1980s
but since 1996 there is no increase in yield. In the past, the increase in cost of production of
cotton was partially offset by increase in yield but now with stagnant yield the cost of production
is rising. Besides low yield, Indian cotton also suffers from inconsistent quality in terms of
length, micronaire and strength.
Policy of Government of India towards Cotton Industry
The Cotton production policies in India historically have been oriented toward promoting and
supporting the textile industry.
The Government Of India announces a minimum support price for each variety of seed cotton
(kapas) based on recommendations from the Commission for Agricultural Costs and Prices. The
Government Of India is also providing subsidies to the production inputs of the cotton in the
areas of fertilizer, power, etc

Markets for Indian Cotton

The three major groups in the cotton market are

Private traders,

State-level cooperatives,

The Cotton Corporation of India Limited.

Of these three groups, private traders handle more than 70 percent of cottonseed and lint,
followed by cooperatives and the CCI.
The Cotton Corporation of India Ltd. for the year 2008-09 had purchased 60.30 lakh quintals of
kapas equivalent to 11.77 lakh bales valuing Rs.1218.70 crores in Andhra Pradesh, Maharashtra,
Madhya Pradesh, Orissa and Karnataka. Beside these the Corporation had also carried out
commercial operations and purchased 2.71 lakh bales valuing Rs.285.82 crores in the year 200809 as compared to around 1.00 lakh bales valuing Rs.108.81 crores during the previous year (i.e.
for the year 2006-07).
Exports of Cotton
The main market for Indian cotton export is China. The other markets also include Taiwan,
Thailand and Turkey. In July 2001, the union government removed all curbs on cotton exports.
As a result of these, now the exporters are not required to obtain any certificate from the Textile
Commissioner on the registration, allocation, quality and quantity of export.
India exported around 25 per cent cotton during 2008-09 and it is estimated nearly 62 per cent
exported to China.
During the year 2008-09 the prices of Indian cotton in early part of the season being lower than
the international prices, had been attractive to foreign buyers and there was good demand for
Indian cotton, especially S-6, H-4 and Bunny, which had resulted in sustained cotton exports,
which are estimated at 55.00 lakh bales
The Cotton Advisory Board estimated an 18-20 percent increase in cotton exports to 65 lakh
bales for Oct 2009- Sep 2010, as against its Aug 2009 estimate of 58 lakh bales.

Imports of Cotton
Despite good domestic crops, India is importing cotton because of quality problems or low world
prices particularly for processing into exportable products like yarns and fabrics.
India imported just 721,000 bales of cotton in 2004-05. The imports rose to 1,217,000 lakh bales
in 2005-06, 4,700,000 lakh bales in 2006-07 and the anticipated imports for the year 2007-08 are
550,000 lakh bales.
For the year 2007-08 the cotton imports into the country had once again remained limited mainly
to Extra Long staple cottons, like as previous year, which were in short supply at around 6 lakh
bales inclusive of import of around 2 lakh bales of long staple varieties contracted by mills
during April-May 2009.
Role of Cotton seed oil in Indian Economy
The global production of cottonseed oil in the recent years has been at around 4-4.5 million tons.
Around 2 lakh tons are traded globally every year.
The major seed producers, viz., China, India, United States, Pakistan are the major producers of
oil. United States (60000 tons) is the major exporter of cottonseed oil, while Canada is the major
importer.
Cottonseed is a traditional oilseed of India. In India the average production of cotton oil is
around 4 lakh tons a year. It is estimated that, if scientific processing is carried out the oil
production can be increased by another 4 lakh tons.
In India, the oil recovery from cottonseed is around 11%. Gujarat is the major consumer of
cottonseed oil in the country. It is also used for the manufacture of vanaspati. The price of
cottonseed oil is generally dependent on the price behavior of other domestically produced oils,
more particularly groundnut oil.
India used to import around 30000 tons of crude cottonseed oil, before palm and soyoil became
the only imports of the country. Currently, the country does not import cottonseed oil.

Role of cottonseed meal in Indian Economy

India produces around 2 million tons of cottonseed meal a year. However, in India mainly
undecorticated meal is largely produced. Several associations are promoting the production of
decorticated cake in India and the production of this is expected to increase in the country.
India used to be a major exporter of cottonseed extraction around two decades ago. However, the
demand for other oil meals like soymeal, has lowered the cottonseed demand globally. In
addition, the low availability of decorticated meal in India has also been a major reason for the
fall in exports.
The major importers of Indian cottonseed meal (undecorticated) used to be Thailand. India in
2003-04 exported only 50 tons of decorticated cottonseed meal. In 2004-05, too there have been
no significant exports. India does not import cottonseed meal.
The Organizations dealing with the promotion of Cotton Industry in India
The organizations that try to promote the quantity and quality of Cotton in India are
I.

The Cotton corporation of India Ltd.,

II.

Cotton Advisory Board.,

III.

Cotton Association of India.

IV.

Central Institute of Cotton Research.

I. The Cotton Corporation of India Limited

The Cotton Corporation of India Ltd. was established on 31st July 1970 as a Government
Company registered under the Companies Act 1956. In the initial period of setting up, as an
Agency in Public Sector, Corporation was charged with the responsibility of equitable
distribution of cotton among the different constituents of the industry and to serve as a vehicle
for the canalisation of imports of cotton.With the changing cotton scenario, the role and
functions of the Corporation were also reviewed and revised from time to time. As per the
Policy directives from the Ministry of Textiles, Government of India in 1985, the Corporation is
nominated as the Nodal Agency of Government of India, for undertaking Price Support
Operations, whenever the prices of kapas (seed cotton) touch the support level.
The Cotton Corporation of India Ltd. Operations cover all the cotton growing states in the
country comprising of:

Punjab, Haryana and Rajasthan in Northern Zone.

Gujarat, Maharashtra and Madhya Pradesh in Central Zone.

Andhra Pradesh, Karnataka & Tamil Nadu in Southern Zone.

II. Cotton Advisory Board

The Cotton Advisory Board is a representative body of Government/ Growers/ Industries/
Traders. It advises the Government generally on matters pertaining to production, consumption
and marketing of cotton, and also provides a forum for liaison among the cotton textile mill
industry, the cotton growers, the cotton trade and the Government. It functions under the
Chairmanship of Textile Commissioner with Deputy Textile Commissioner as a Member
Secretary.
III. The Cotton Association of India
The Cotton Association of India also called as the East India Cotton Association (EICA) was
declared as the statutory body by the Bombay Cotton Contract Act on 28th December, 1922. Its
purpose is to

Provide and maintain suitable buildings or rooms or a Cotton

Exchange in the city of Bombay or elsewhere in India.

Provide forms of contracts and regulate the marketing, etc. of the

contracts.

Fix and adopt standards or classifications of cotton.

Adjust by arbitration or otherwise controversies between

persons engaged in the cotton trade.

Acquire, preserve or disseminate useful information connected with the cotton

interests.
IV. Central Institute of Cotton Research
With a view to develop a Centre of excellence for carrying out long term research on
fundamental problems limiting cotton production the Indian Council of Agricultural Research
has established the Central Institute for Cotton Research at Nagpur in April, 1976. CICR was

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simultaneously established at Coimbatore to cater to the needs of southern cotton zone. CICR
was established at Sirsa in the year 1985, to cater to the needs of northern irrigated cotton zone.
All the three research farms are well equipped with tractors and other farm implements and
efforts are underway to initiate further developmental work in all the farms.
The Vision of the CICR is to improve production and quality of Indian Cotton with reduced cost
to make cotton production cost effective and competitive in the national and global market. The
Mission of CICR is to develop economically viable and eco-friendly production and protection
technologies for enhancing quality cotton production by 2-3% every year on a sustainable basis
for the next twelve years (till 2020).
The Current Scenario of Cotton Industry (2008-09)
The cotton production in the country has been increasing continuously since last three years and
the same has further gone up by around 11% during cotton season 2008-09 at a record level of
270 lakh bales as against 244 lakh bales during 2007-08. Gujarat has turned into a largest cotton
producing State with a record production-level of 93 lakh bales constituting around 34% of the
countrys total production.
The area under cotton cultivation during 2008-09 has also gone up by around 6% at 91.58 lakh
hectares as against 86.77 lakh hectares during 2007-08.
With wide usage of hybrid seeds throughout the country as well as changed mindset of cotton
farmers for adoption of better and improved farm practices, the average productivity of cotton
has crossed 503 kgs per hectare as against 478 kgs during the previous year. The prices of Indian
cotton in early part of the season being lower than the international prices, had been attractive to
foreign buyers and there was good demand for Indian cotton.
Due to expectation of bumper crop, the mill demand in the beginning of the season was subdued
which put pressure on the cotton prices right from the beginning of the season and has resulted
into fall in cotton prices between October 2008 & January 2009. Cotton prices reached its peak
level by end-March 2009 and there was some correction in cotton prices in April and May 2009.
However, on the whole, cotton prices remained better by almost Rs.3000 per quintal in almost all
varieties as compared to previous year.

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Future of Cotton Industry in India

Considering the continual capital investments in the textile industry, the Govt. of India may
extend the Technology Upgradation Fund Scheme (TUFS) by the end of the 11th Five Year Plan
(till 2012-2013), in order to support the industry. Indian textile industry is massively investing to
meet the targeted output of $85bn by the end of 2011, aiming exports of $50bn. There is huge
development foreseen in Indian textile exports from the $17bn attained in 2006-07 to $50bn by
2010-11. The estimation for the exports in the current financial year is about $19bn. There is
substantial potential in Indian exports of technical textiles and home-textiles, as most European
companies want to set up facilities near-by the emerging markets, such as China and India.
The global demand for apparel and woven textiles is likely to grow by 25 percent by year 2011
to over 35mn tons, and Asia will be responsible for 85 percent output of this growth. The woven
products output will also rise in Central and Southern American countries, however, at a
reasonable speed. On the other hand, in major developed countries, the output of woven products
will remain stable. Weaving process is conducted to make fabrics for a broad range of clothing
assortment, including shirts, jeans, sportswear, skirts, dresses, protective clothing etc., and also
used in non-apparel uses like technical, automotive, medical etc
It is been forecasted that the woven textile and apparel markets will sustain their growth from
current till 2011.
The imports of apparel and textiles will rise from developed economies like the USA and the
western countries of Europe and Japan, along with some newly emerged economies, such as
South Korea and Taiwan. Certainly, import growth has been witnessed vertical rise in the
previous year.
Apparel is the most preferred and important of all the other applications. Woven fabrics are
widely used in apparel assortments, including innerwear, outerwear, nightwear and underwear, as
well as in specialized apparels like protective clothing and sportswear. Home textile also

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contributes considerably in woven fabric in products assortments like curtains, furnishing

fabrics, carpets, table cloths etc.
Special kind of woven fabrics are utilized in medical as well as industrial applications. The
medical applications include adhesives, dressing bandages, plasters etc.
Where as, industrial applications includes;
Geotextile - interior upholstery, trim, airbags and seat belts and lyre fabrics.

Sailcloth

tent

and

fabrics

used

architectures,

transportation

and

tarpaulins.

And many more applications

The Indian Industry foresees huge demand for industrial woven products for medical and
automotive applications. Demand for woven fabrics is anticipated to be rise vertically in the
sector of home textiles.
Non woven sector has great future in terms of global demand, thus major facilities of cotton yarn
are currently concentrating just on home textiles. It is mandatory, that the peak management of
the cotton yarn manufacturers analyze the future prospect and growing graph of demand for non
woven products.
Conclusion
Anticipating massive growth in medical and automobile sectors, these sectors assures substantial
demand for non woven facilities in India. Albeit, home textiles also will lure higher demand,
there are specific demands for home textile facilities also.
The 7th Five Year Plan has huge consideration on agricultural growth that also includes
cotton textileindustry, resulting a prosperous future forecast for the textile industry in india.
Indian cotton yarn manufacturers should rush forward for joint ventures and integrated plans for
establishing processing and weaving facilities in home textiles and technical textiles in order to
meet export target of $50bn, and a total textile production of $85bn by 2009-2010.
Future Challenges for the Indian Cotton Industry

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The challenges that are going to face by the cotton producers in India for the season 2009-10 are:
Rupee appreciation
The increase in the value of the rupee gives only smaller import orders to the cotton producers.
Cheaper Imports
The appreciated rupee value makes the cotton imports cheaper when compared to past. So this
aspect is also required to consider by the cotton producers.
Low quality
The Quality of cotton is also far from satisfactory considering the presence of a large number of
contaminants. So the cotton producers are also required to take care in this aspect.

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COMPANY PROFIL4
AMARAVATHI TEXTILES PRIVATE LIMITED.
AMARAVATHI TEXTILES Group with its diverse interests in core areas is surging ahead with drive
and determination. with all the companies superbly integrated in one single campus, the group
harnesses an entrepreneurial spirit, state-of-art technology and financial strengths to emerge as an
industrial force to reckon with.
AMARAVATHI TEXTILES GROUP is driven by a passion be the best in al the areas it operates.
Backed by a high density of advanced technology and sophisticated manufacturing facilities, its only
natural that the group is leaf fogging for an outstanding future. The total group turnover is around 300
`crores per annum.
ABOUT THE COMPANY

The founder of AMARAVATHI TEXTILES who has drawn its future planned growth.

A Man whose spirit of Dynamism has helped the group to achieve manifold growth. Thanks to his
pioneering vision, the groups operation grew and market extended. Today AMARAVATHI
TEXTILES is a multi-activity group with a Rs.300crores turnover, comprising 6 divisions with
diverse interest in..

COTTON

SPINNING

TEXTILE

A TRADITION OF ENTERPRISE
Sri Kandimalla Srinivasa Rao left in pursuit of a dream. With just two bags of grain, he ventured to
cultivate 100 acres of land. And with the tell- tale sprite gleaming in his eyes. His value oriented
strategy and adventurous sprit bore fruit consistently. His farmland grew and from a model farmer he

15

evolved into a dynamitic entrepreneur. He proved that success starts with a proactive attitude. A
vigorous confidence that one can effectively integrate ideas with enterprise. Sadinenis first trip to
RUSSIA gave him the power of conviction to stride boldly into the industrial environment. And
valiantly into the future.
THE BIRTH OF A DREAM
Sri Kandimalla Srinivasa Rao set up a cotton ginning mill in 1984. The operations grew rapidly to lay
solid foundations for giant surging ahead in diverse environments. To the group, the future is rich in
possibilities. A future where the best of minds and men will work. And will have the most resources to
draw upon. Its vision of the future where change will be embraced as the very basis of opportunity
and endeavor.
The managing Director of AMARAVATHI TEXTILES (P) LTD. Relentless pursuit of perfection is
the hallmark of this young and dynamic B.Tech Textiles Graduate.
His rich and professionals experience in the spinning line enabled AMARAVATHI Textiles Spinning
Division to scale new heights. His enterprising zeal and cautious planning have been the pivotal points
in driving the group towards trailblazing progress. Mr. Kandimalla Srinivasa Rao is committed to
labour welfare and his visionary leadership has earned him a wealth of respect among the employees
of AMARAVATHI. Astute professionals by habit, he is forever aiming higher. He is widely
acknowledged as the man who has fostered a can do culture which starts at top and filters down to
every employee at AMARAVATHI TEXTILES. He is powered by just one belief..
Success is a matter of excellence, and not chance.
Social service has always been a matter of prime concern to him. Which is why he perennially
strives to provide the best education and undertake multi-pronged schemes towards the betterment
of the community. While nurturing a corporate culture that encourages individual growth, he is
committed to a vision that encompasses everybodys enlistment.
COTTON DIVISION
The COTTON GINNING & PRESSING UNIT was started in 1984. The Division maintains 54 Gins
and 1 Hydraulic press with an annualized turnover of Rs.40crores. The company firmly believes that
unmatched capabilities plus an in-depth knowledge of various cotton growing areas alone can put it on

16

the path to speedy growth. This Division also processes India s best long staple cotton DCH-32 at
Dharwad Branch, Karnataka.

17

The division is poised to excel and is confidently geared to post an impressive growth rate. This
Division has stayed big thinking big and keeping an eye on the details that sustain quality.
SPINNING DIVISION
The AMARAVATHI TEXTILES SPINNING MILLS DIVISION has been a trend setter ever
since its commissioning. Established in 1991, the plant started commercial production of World class
yarn to the requirement of global markets as well as indigenous markets. Conceived in a sprawling
area in the midst of rich cotton fields of GUNTUR District, the division is on its way to dizzy heights
on the cotton horizon. We are having a capacity of 60,000 spindles. The impressive performance
reflects AMARAVATHI TEXTILESS commitment to continue machine modernization. The division
through a concerted Endeavour assures exemplary quality by undertaking rigid quality control
measures which start right at the at the stage of procuring raw material ingredients down to the last
level. It is the dedicated quality consciousness that as paved the way for a phenomenal demand for
AMARAVATHI TEXTILES products.
All this translates into utmost customer satisfaction. The unit is enviably well-entrenched as a leading
player for the highly competitive export markets ever since 1996. AMARAVATHI TEXTILES
magnificent obsession with exports has won for it important international markets. In fact, over 70%
of the produce was exported major European countries.
In recognition of its excellent quality conforming to the highest international standards, the products of
Amaravathi have won widespread appreciation and repeat orders. By exporting world class cotton
yarn globally, the mill is leap fogging for the further growth. The thrust on higher capacity utilization,
uncompromising productivity standards, quality management, astute focus on niche markets, prompt
delivery schedules combined with competitive pricing have resulted in higher sales and profits.
AMARAVATHI VALUES:
v Promptness in execution.
v Transparency in Business
v Integrity in Negotiation
v Innovation that fuels growth

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ENVIRONMENTAL PROTECTION AND SAFETY A TOP PRIORITY

Amaravathi is committed to the conservation of the environment. Our manufacturing facilities
comply with stringent environmental norms and are equipped for effluent treatment. The Amaravathi
Dyeing Plant uses reverse osmosis with a multi effect vaporator to qualify as a zero discharge unit.
COUNT RANGE : We are running from 50 to 100 counts in single well as double (TFO)
yarns. We are running compact yarn with 12000 spindles (suessen). We will achieve 25000 spindles
compact yarn shortly.
TEXTILE DIVISION
The Division was started in 2005. The Units equipped with modern imported machinery. Presently we
are running with 48 Brand New Looms. We have sucker wrapping and sizing. Total plant planned for
98 Looms. In phased manner we are expanding the Looms capacity.
STATEMENT OF ACCOUNTING POLICIES GENERAL:
The Financial Statements are prepared on historical cost convention and in accordance with
generally accepted accounting practices.
FIXED ASSETS:
Fixed assets are stated at historical cost less accumulated depreciation.
INVESTMENTS:
Long term Investment is stated at cost and income thereon accounted for on accrual. Provision
towards decline in the value of Long Term Investments is made only when such decline id other than
temporary.
DEPRECIATION:
Depreciation is a written off in accordance with the provisions of schedule XIV of the companies Act
1956 as follows:

Under straights Line Method in respect of the assets of Spinning, Power

and

Divisions.

Under written down valve method on the assets of all other divisions of the company.
19

Textile

INVENTORIES:
Valuation of inventories is made as follows

Raw-Material and Finished goods at cost or net realizable valve whichever is lower.

Work-in-Progress at cost inclusive of direct production overheads.

Stores and spares at cost.

Electronic power at net releasable valve

Excise Duty liability on finished goods is accounted for as and when goods are cleared from factory
and there is no liability on closing stock of finished goods at the year end.
SALES:
Sales are inclusive of Excise Duty.
TAXES ON INCOME:
Current taxes are determined as per the provisions of income Tax Act 1961 in respect of taxable
income for the year ended 31st march, 2003.
Differed tax liability is recognized, subject to the consideration of prudence on timing
differences, being the difference between taxable income and accounting that originate in one period
and are capable of reversal in one or more subsequent periods...
SEGMENT REPORTING:
The accounting policies adopted for segment reporting are in line with the accounting policies of the
company with the following additional policies for segment reporting.
Inter-segment Revenue has been accounted for based on the market related prices.
Revenue and Expenses other than interest have been identified to segments on the basis of their
relationship to the operating activities of the segment. Revenue and expense which related to the
enterprise as a whole and are not allocable to segments on a reasonable basis have been included
under Unallocated head.
RETIREMENT BENEFITS:

20

The Company makes regular monthly contribution to provident fund which are deposited with the
Government and Group term Insurance is routed through L.I.C, and are charged against the revenue.
The company has taken Group Gradually (Cash Accumulation) scheme with Life Insurance
Corporation of India . The premium on policy and the difference between the amounts of gratuity paid
on retirement and recovered from the Life Insurance Corporation of India debited to profit and Loss
Account. Leave encashment is accounted as and when the employees claimed and paid.
PROPOSED DIVIDEND:
Provision is made in the account for the dividend payable (including of all tax thereon) by the
company as recommended by the Board of Directors, Pending approval of the shareholders at the
annual General Meeting.
IMPAIRMENT OF ASSETS:
At the date of each balance sheet the company evaluates internally, indications of the
impairment if any, to carrying amount of its fixed and other assets. No impairment loss has been
recognized.

CONTIGENT LIABILITIES:
Contingent Liabilities are not recognized in the accounts, but are disclosed after a careful
evaluation of the concerned facts and legal issues involved.
Amaravathi Product:

YARN

Commercial performance
Table 2.2:
Year

(in rupees)
Sales Turnover

Domestic Sales

2011-12

28,34,20,669

28,34,20,669

2012-13

34,46,12,983

34,46,12,983

2013-14

44,48,54,723

44,48,54,723

2014-15

52,60,60,377

2015-16

68,97,53,568

21

52,60,60,377
68,97,53,568

BOARD OF DIRECTORS

K.Srinivasa Rao. Director

K.Bhaskar

Director

K.Geetha

Director

GENERAL MANAGER.
Shri P.Ramesh, D.T.T., B.A.,
ACCOUNTS MANAGER.
Shri N.Veeraiah, B.Com. A.C.A.

BANKERS
State Bank of India , Guntur
State Bank of Mysore , Guntur .
State Bank of Hyderabad , Guntur .
REGISTERED OFFICE
33-263, Kandimalla Road ,
Pandaripuram,
Chilakaluripet-522616
FACTORY
Martur-522301,
Martur Mandal,

22

Prakasam District, Andhra Pradesh.

23

24

JOB SATISFACTION
INTRODUCTION
Job satisfaction is not the same as motivation. It is more if an attitude, an
internal state of the person concerned. It could, for example, be associated with a personal
feeling of achievement.
Job satisfaction is an individuals emotional reaction to the job itself. It is
his attitude towards his job.

Definitions:
Job satisfaction does not seem to reduce absence, turnover and perhaps accident rates.
-Robert L. Kahn

Job satisfaction is a general attitude towards ones job: the difference between the amount of
reward workers receive and the amount they believe they should receive.
-P. Robbins

Job satisfaction defines as The amount of over all positive affect (or feeling) that individuals
have toward their jobs.
-Hugh J. Arnold and Daniel C. Feldman

25

Job satisfaction is the amount of pleasure or contentment associated with a job. If you like your
job intensely, you will experience high job satisfaction. If you dislike your job intensely, you will
experience job dissatisfaction.
By Andrew J DuBrins,
The practice of supervision, New Delhi
Job satisfaction is one part of life satisfaction. The environment influences the job. Similarly,
since a job is important part of life, job satisfaction influences ones general life satisfaction.
Manager may need to monitor not only the job and immediate work environment but also their
employees attitudes towards other part of life.

JOB

POLITICS

FAMILY

LIFE

LEISURE

RELATED ELEMENT OF LIFE SATISFACTION

26

Human life has become very complex and completed in now-a-days. In modern society the needs
and requirements of the people are ever increasing and ever changing. When the people are ever
increasing and ever changing, when the peoples needs are not fulfilled they become dissatisfied.
Dissatisfied people are likely to contribute very little for any purpose. Job satisfaction of
industrial workers us very important for the industry to function successfully. Apart from
managerial and technical aspects, employers can be considered as backbone of any industrial
development. To utilize their contribution they should be provided with good working conditions
to boost their job satisfaction. Any business can achieve success and peace only when the
problem of satisfaction and dissatisfaction of workers are felt understood and solved, problem of
efficiency absenteeism

labour turnover require a social skill of understanding human problems

and dealing with them scientific investigation serves the purpose to solve the human problems in
the industry.
a) Pay.
b) The work itself.
c) Promotion
d) The work group.
e) Working condition.
f) Supervision.

PAY
Wages do play a significant role in determining of satisfaction. Pay is instrumental in fulfilling
so many needs. Money facilities the obtaining of food, shelter, and clothing and provides the
means to enjoy valued leisure interest outside of work. More over, pay can serve as symbol of

27

achievement and a source of recognition. Employees often see pay as a reflection of

organization. Fringe benefits have not been found to have strong influence on job satisfaction as
direct wages.

THE WORK ITSELF

Along with pay, the content of the work itself plays a very major role in determining how
satisfied employees are with their jobs. By and large, workers want jobs that are challenging;
they do want to be doing mindless jobs day after day. The two most important aspect of the work
itself that influence job satisfaction are variety and control over work methods and work place. In
general, job with a moderate amount of variety produce the most job satisfaction. Jobs with too
little variety cause workers to feel bored and fatigue. Jobs with too much variety and stimulation
cause workers to feel psychologically stressed and burnout.

PROMOTION
Promotional opportunities have a moderate impact on job satisfaction. A promotion to a higher
level in an organization typically involves positive changes I supervision, job content and pay.
Jobs that are at the higher level of an organization usually provide workers with more freedom,
more challenging work assignments and high salary.

SUPERVISION
Two dimensions of supervisor style:
1. Employee centered or consideration supervisors who establish a supportive personal
relationship with subordinates and take a personal interest in them.

28

2. The other dimension of supervisory style influence participation in decision making, employee
who participates in decision that affect their job, display a much higher level of satisfaction with
supervisor an the overall work situation.
WORK GROUP
Having friendly and co-operative co-workers is a modest source of job satisfaction to individual
employees. The working groups also serve as a social support system of employees. People often
used their co-workers as sounding board for their problem of as a source of comfort.
WORK CONDITION
The employees desire good working condition because they lead to greater physical comfort.
The working conditions are important to employees because they can influence life outside of
work. If people are require to work long hours and / or overtime, they will have very little felt for
their families, friends and recreation outside work.
Determinants of job satisfaction:
While analyzing the various determinants of job satisfaction, we have to keep in mind that: all
individuals do no derive the same degree of satisfaction though they perform the same job in the
same job environment and at the same time. Therefore, it appears that besides the nature of job
and job environment, there are individual variables which affect job satisfaction. Thus, all those
factors which provide a fit among individual variables, nature of job, and situational variables
determine the degree of job satisfaction. Let us see what these factors are.
Individual factors:
Individuals have certain expectations from their jobs. If their expectations are met from the jobs,
they feel satisfied. These expectations are based on an individuals level of education, age and
other factors.Level of education:

29

Level of education of an individual is a factor which determines the degree of job satisfaction.
For example, several studies have found negative correlation between the level of education,
particularly higher level of education, and job satisfaction. The possible reason for this
phenomenon may be that highly educated persons have very high expectations from their jobs
which remain unsatisfied. In their case, Peters principle which suggests that every individual
tries to reach his level of incompetence, applies more quickly.

Age:
Individuals experience different degree of job satisfaction at different stages of their life. Job
satisfaction is high at the initial stage, gets gradually reduced, starts rising upto certain stage, and
finally dips to a low degree. The possible reasons for this phenomenon are like this. When
individuals join an organization, they may have some unrealistic assumptions about what they
are going to drive from their work. These assumptions make them more satisfied. However,
when these assumptions fall short of reality, job satisfaction goes down. It starts rising again as
the people start to assess the jobs in right perspective and correct their assumptions. At the last,
particularly at the fag end of the career, job satisfaction goes down because of fear of retirement
and future outcome.
Other factors:
Besides the above two factors, there are other individual factors which affect job satisfaction. If
an individual does not have favourable social and family life, he may not feel happy at the
workplace. Similarly, other personal problems associated with him may affect his level of job
satisfaction. Personal problems associated with him may affect his level of job satisfaction.

30

Nature of job:
Nature of job determines job satisfaction which is in the form of occupation level and job
content.
Occupation level:
Higher level jobs provide more satisfaction as compared to lower levels. This happens because
high level jobs carry prestige and status in the society which itself becomes source of satisfaction
for the job holders.
For example, professionals derive more satisfaction as compared to salaried people: factory
workers are least satisfied.
Job content:
Job content refers to the intrinsic value of the job which depends on the requirement of skills for
performing it, and the degree of responsibility and growth it offers. A higher content of these
factors provides higher satisfaction. For example, a routine and repetitive lesser satisfaction; the
degree of satisfaction progressively increases in job rotation, job enlargement, and job
enrichment.
Situational variables:
Situational variables related to job satisfaction lie in organizational context formal and
informal. Formal organization emerges out of the interaction of individuals in the organization.
Some of the important factors which affect job important factors which affect job satisfaction are
given below:
1. Working conditions:
Working conditions, particularly physical work environment, like conditions of workplace and
associated facilities for performing the job determine job satisfaction. These work in two ways.

31

First, these provide means job performance. Second, provision of these conditions affects the
individuals perception about the organization. If these factors are favourable, individuals
experience higher level of job satisfaction.
2. Supervision:
The type of supervision affects job satisfaction as in each type of supervision; the degree of
importance attached to individuals varies. In employee-oriented supervision, there is more
concern for people which is perceived favourably by them and provides them more satisfaction.
In job oriented supervision, there is more emphasis on the performance of the job and people
become secondary. This situation decreases job satisfaction
3. Equitable rewards:
The type of linkage that is provided between job performance and rewards determines the degree
of job satisfaction. If the reward is perceived to be based on the job performance and equitable, it
offers higher satisfaction. If the reward is perceived to be based on considerations other than the
job performance, it affects job satisfaction adversely.
4. Opportunity:
It is true that individuals seek satisfaction in their jobs in the context of job nature and work
environment by they also attach importance to opportunities for promotion that these job offer. If
the present job offers opportunity of promotion is lacking, it reduces satisfaction.

1.

Work group: Individuals work in group either created formally of they develop on their

own to seek emotional satisfaction at the workplace. To the extent such groups are cohesive; the
degree of satisfaction is high. If the group is not cohesive, job satisfaction is low. In a cohesive

32

group, people derive satisfaction out of their interpersonal interaction and workplace becomes
satisfying leading to job satisfaction.

Effect of Job Satisfaction

Job satisfaction has a variety of effects. These effects may be seen in the context of an
individuals physical and mental health, productivity, absenteeism, and turnover.

Physical and Mental Health:

The degree of job satisfaction affects an individuals physical and mental health. Since job
satisfaction is a type of mental feeling, its favourableness or unfavourablesness affects the
individual psychologically which ultimately affects his physical health.
For example, Lawler has pointed out that drug abuse, alcoholism and mental and physical health
result from psychologically harmful jobs. Further, since a job is an important part of life, job
satisfaction influences general life satisfaction. The result is that there is spillover effect which
occurs in both directions between job and life satisfaction.
Productivity:
There are two views about the relationship between job satisfaction and productivity:
1. A happy worker is a productive worker,
2. A happy worker is not necessarily a productive worker.
The first view establishes a direct cause-effect relationship between job satisfaction and
productivity; when job satisfaction increases, productivity increases; when satisfaction decreases,
productivity decreases. The basic logic behind this is that a happy worker will put more efforts
for job performance. However, this may not be true in all cases.

33

For example, a worker having low expectations from his jobs may feel satisfied but he may not
put his efforts more vigorously because of his low expectations from the job. Therefore, this
view does not explain fully the complex relationship between job satisfaction and productivity.
The another view: That is a satisfied worker is not necessarily a productive worker explains the
relationship between job satisfaction and productivity. Various research studies also support this
view.
This relationship may be explained in terms of the operation of two factors: effect of job
performance on satisfaction and organizational expectations from individuals for job
performance. 1. Job performance leads to job satisfaction and not the other way round. The basic
factor for this phenomenon is the rewards (a source of satisfaction) attached with performance.
There are two types of rewardsintrinsic and extrinsic. The intrinsic reward stems from the job
itself which may be in the form of growth potential, challenging job, etc. The satisfaction on such
a type of reward may help to increase productivity. The extrinsic reward is subject to control by
management such as salary, bonus, etc. Any increase in these factors does not hep to increase
productivity though these factors increase job satisfaction.
1.

A happy worker does not necessarily contribute to higher productivity because

he has to operate under certain technological constraints and, therefore, he cannot go beyond
certain output. Further, this constraint affects the managements expectations from the individual
in the form of lower output. Thus, the work situation is pegged to minimally acceptable level of
performance. However, it does not mean that the job satisfaction has no impact o productivity. A
satisfied worker may not necessarily lead to increased productivity but a dissatisfied worker
leads to lower productivity.

34

Perceived equity
of rewards

Extrinsic
reward
Performanc
e

Satisfaction
Intrinsic
reward

THE RELATION BETWEEN PERFORMANCE AND SATISFACTION

Absenteeism:
Absenteeism refers to the frequency of absence of job holder from the workplace either
unexcused absence due to some avoidable reasons or long absence due to some unavoidable
reasons. It is the former type of absence which is a matter of concern. This absence is due to lack
of satisfaction from the job which produces a lack of will to work and alienate a worker form
work as for as possible. Thus, job satisfaction is related to absenteeism.
HIGH

TURNOVER

JOB

ABSENCES

SATISFACTION

LOW
LOW

HIGH

35

TURNOVER AND ABSENCES

RELATIONSHIP OF JOB SATISFACTION, EMPLOYEE TURNOVER AND ABSENCES

Employee turnover:
Turnover of employees is the rate at which employees leave the organization within a given
period of time. When an individual feels dissatisfaction in the organization, he tries to overcome
this through the various ways of defense mechanism. If he is not able to do so, he opts to leave
the organization. Thus, in general case, employee turnover is related to job satisfaction.
However, job satisfaction is not the only cause of employee turnover, the other cause being better
opportunity elsewhere.
For example, in the present context, the rate of turnover of computer software professionals is
very high in India. However, these professionals leave their organizations not simply because
they are not satisfied but because of the opportunities offered from other sources particularly
from foreign companies located abroad.

36

DIMENSIONS OF JOB SATIFACTION

Job satisfaction is a complex concept and difficult to measure objectively. The level of job
satisfaction is affected by a wide range of variables relating to individual, social, cultural,
organizational factors as stated below:-

DIMENSIONS

INDIVIDUAL

SOCIAL

ORGANIZATIONAL

ENVIRONMENTAL

CULTURAL
FACTORS

FACTOR

FACTOR

FACTOR

Individual:- Personality, education, intelligence and abilities, age, marital status, orientation
to work.

Social factors:-Relationship with co-workers, group working and norms, opportunities for

interaction, informal relations etc.

Organizational factors:- Nature and size, formal structure, personnel policies and

procedures, industrial relation, nature of work, technology and work organization, supervision
and styles of leadership, management systems, working conditions.
Environmental factors:-Economic, social, technical and governmental influences.
Cultural factors:-Attitudes, beliefs and values.

37

These factors affect job satisfaction of certain individuals in a given set of circumstances but
not necessarily in others. Some workers may be satisfied with certain aspects of their work and
dissatisfied with other aspects .Thus, overall degree of job satisfaction may differ from person to
person.
IMPORTANCE TO STUDY JOB SATISFACTION
The importance to the study of job satisfaction level is very important for executives. Job
satisfaction study importance can be understood by the answer of the following question
1)

Is there room for improvement?

2)

Who is relatively more dissatisfied?

3)

What contributes to the employee satisfaction?

4)

What are the effects of negative employee attitudes?

Benefits of job satisfaction study

Job satisfaction surveys can produce positive, neutral or negative results. If planned properly
and administered, they will usually produce a number of important benefits, such as1. It gives management an indication of general levels of satisfaction in a company. Surveys
also indicate specific areas of satisfaction or dissatisfaction as compared to employee services
and particular group of employee.
2. It leads to valuable communication brought by a job satisfaction survey. Communication
flow in all direction as people plan the survey, take it and discuss the result. Upward
communication is especially fruitful when employee are encouraged to comment about what is
on their minds instead of merely answering questions about topics important to management.

38

3. as a survey is safety value, an emotional release. A chance to things gets off. The survey is an
intangible expression of managements interest in employee welfare, which gives employees a
reason to feel better towards management.
4. Job satisfaction surveys are a useful way to determine certain training needs.
5. Job satisfaction surveys are useful for identifying problem that may arise, comparing the
response to several alternatives and encouraging manager to modify their original plans. Follow
up surveys allows management to evaluate the actual response to a change and study its success
or failure.
Importance to Worker and Organization
Frequently, work underlies self-esteem and identity while unemployment lowers self-worth and
produces anxiety. At the same time, monotonous jobs can erode a worker's initiative and enthusiasm
and can lead to absenteeism and unnecessary turnover. Job satisfaction and occupational success are
major factors in personal satisfaction, self-respect, self-esteem, and self-development. To the worker,
job satisfaction brings a pleasurable emotional state that often leads to a positive work attitude. A
satisfied worker is more likely to be creative, flexible, innovative, and loyal.
For the organization, job satisfaction of its workers means a work force that is motivated and
committed to high quality performance. Increased productivity the quantity and quality of output per
hour worked seems to be a byproduct of improved quality of working life. It is important to note that
the literature on the relationship between job satisfaction and productivity is neither conclusive nor
consistent.. Unhappy employees, who are motivated by fear of job loss, will not give 100 percent of
their effort for very long. Though fear is a powerful motivator, it is also a temporary one, and as soon
as the threat is lifted performance will decline.

39

Tangible ways in which job satisfaction benefits the organization include reduction in complaints
and grievances, absenteeism, turnover, and termination; as well as improved punctuality and worker
morale. Job satisfaction is also linked to a more healthy work force and has been found to be a good
indicator of longevity. And although only little correlation has been found between job satisfaction
and productivity, Brown (1996) notes that some employers have found that satisfying or delighting
employees is a prerequisite to satisfying or delighting customers, thus protecting the "bottom line."
No wonder Andrew Carnegie is quoted as saying: "Take away my people, but leave my factories,
and soon grass will grow on the factory floors. Take away my factories, but leave my people,
and soon we will have a new and better factory"

SATISFIED EMPLOYEE

40

Creating Job Satisfaction

So, how is job satisfaction created? What are the elements of a job that create job satisfaction?
Organizations can help to create job satisfaction by putting systems in place that will ensure that
workers are challenged and then rewarded for being successful. Organizations that aspire to creating
a work environment that enhances job satisfaction need to incorporate the following:

Flexible work arrangements, possibly including telecommuting

Training and other professional growth opportunities

Interesting work that offers variety and challenge and allows the worker opportunities to "put
his or her signature" on the finished product

Opportunities to use one's talents and to be creative

Opportunities to take responsibility and direct one's own work

A stable, secure work environment that includes job security/continuity

An environment in which workers are supported by an accessible supervisor who provides

timely feedback as well as congenial team members

Flexible benefits, such as child-care and exercise facilities

Up-to-date technology

Competitive salary and opportunities for promotion

Probably the most important point to bear in mind when considering job satisfaction is that there are
many factors that affect job satisfaction and that what makes workers happy with their jobs varies
from one worker to another and from day to day. Apart from the factors mentioned above, job
satisfaction is also influenced by the employee's personal characteristics, the manager's personal
characteristics and management style, and the nature of the work itself. Managers who want to
41

maintain a high level of job satisfaction in the work force must try to understand the needs of each
member of the work force.
For example, when creating work teams, managers can enhance worker satisfaction by placing
people with similar backgrounds, experiences, or needs in the same workgroup. Also, managers can
enhance job satisfaction by carefully matching workers with the type of work.
For example, a person who does not pay attention to detail would hardly make a good inspector, and
a shy worker is unlikely to be a good salesperson. As much as possible, managers should match job
tasks to employees' personalities.
Managers who are serious about the job satisfaction of workers can also take other deliberate steps to
create a stimulating work environment. One such step is job enrichment. Job enrichment is a
deliberate upgrading of responsibility, scope, and challenge in the work itself. Job enrichment
usually includes increased responsibility, recognition, and opportunities for growth, learning, and
achievement. Large companies that have used job-enrichment programs to increase employee
motivation and job satisfaction.
Good management has the potential for creating high morale, high productivity, and a sense of
purpose and meaning for the organization and its employees. Empirical findings show that job
characteristics such as pay, promotional opportunity, task clarity and significance, and skills
utilization, as well as organizational characteristics such as commitment and relationship with
supervisors and co-workers, have significant effects on job satisfaction. These job characteristics can
be carefully managed to enhance job satisfaction.

42

Of course, a worker who takes some responsibility for his or her job satisfaction will probably find
many more satisfying elements in the work environment. Everett (1995) suggests that employees ask
themselves the following questions:

When have I come closest to expressing my full potential in a work situation?

What did it look like?

What aspects of the workplace were most supportive?

What aspects of the work itself were most satisfying?

What did I learn from that experience that could be applied to the present situation?

43

Workers' Roles in Job Satisfaction

If job satisfaction is a worker benefit, surely the worker must be able to contribute to his or her own
satisfaction and well-being on the job. The following suggestions can help a worker find personal
job satisfaction:

Seek opportunities to demonstrate skills and talents. This often leads to more challenging
work and greater responsibilities, with attendant increases in pay and other recognition.

Develop excellent communication skills. Employers value and reward excellent reading,
listening, writing, and speaking skills.

Know more. Acquire new job-related knowledge that helps you to perform tasks more
efficiently and effectively. This will relieve boredom and often gets one noticed.

Demonstrate creativity and initiative. Qualities like these are valued by most organizations
and often result in recognition as well as in increased responsibilities and rewards.

Develop teamwork and people skills. A large part of job success is the ability to work well
with others to get the job done.

Accept the diversity in people. Accept people with their differences and their imperfections
and learn how to give and receive criticism constructively.

See the value in your work. Appreciating the significance of what one does can lead to
satisfaction with the work itself. This helps to give meaning to one's existence, thus playing a
vital role in job satisfaction.

Learn to de-stress. Plan to avoid burnout by developing healthy stress-management

techniques.

44

45

Assuring Job Satisfaction

Assuring job satisfaction, over the longterm, requires careful planning and effort both by
management and by workers. Managers are encouraged to consider such theories as
Herzberg's(1957) and Maslow's (1943) Creating a good blend of factors that contribute to a
stimulating, challenging, supportive, and rewarding work environment is vital. Because of the
relative prominence of pay in the reward system, it is very important that salaries be tied to job
responsibilities and that pay increases be tied to performance rather than seniority.
So, in essence, job satisfaction is a product of the events and conditions that people experience on
their jobs. Brief (1998) wrote: "If a person's work is interesting, her pay is fair, her promotional
opportunities are good, her supervisor is supportive, and her coworkers are friendly, then a
situational approach leads one to predict she is satisfied with her job" (p. 91). Very simply put, if the
pleasures associated with one's job outweigh the pains, there is some level of job satisfaction
MODEL OF JOB SATISFACTION

46

THEORIES OF JOB SATISFACTION

Affect Theory
Edwin A. Lockes Range of Affect Theory (1976) is arguably the most famous job satisfaction
model. The main premise of this theory is that satisfaction is determined by a discrepancy
between what one wants in a job and what one has in a job. Further, the theory states that how
much one values a given facet of work (e.g. the degree of autonomy in a position) moderates
how satisfied/dissatisfied one becomes when expectations are/arent met. When a person values a
particular facet of a job, his satisfaction is more greatly impacted both positively (when
expectations are met) and negatively (when expectations are not met), compared to one who
doesnt value that facet. To illustrate, if Employee A values autonomy in the workplace and
Employee B is indifferent about autonomy, then Employee A would be more satisfied in a
position that offers a high degree of autonomy and less satisfied in a position with little or no
autonomy compared to Employee B. This theory also states that too much of a particular facet
will produce stronger feelings of dissatisfaction the more a worker values that facet.
Dispositional Theory
Another well-known job satisfaction theory is the Dispositional Theory]. It is a very general
theory that suggests that people have innate dispositions that cause them to have tendencies
toward a certain level of satisfaction, regardless of ones job. This approach became a notable
explanation of job satisfaction in light of evidence that job satisfaction tends to be stable over
time and across careers and jobs. Research also indicates that identical twins have similar levels
of job satisfaction.

47

A significant model that narrowed the scope of the Dispositional Theory was the Core Selfevaluations Model, proposed by Timothy A. Judge in 1998. Judge argued that there are four Core
Self-evaluations that determine ones disposition towards job satisfaction: self-esteem, general
self-efficacy, locus of control, and neuroticism. This model states that higher levels of selfesteem (the value one places on his/her self) and general self-efficacy (the belief in ones own
competence) lead to higher work satisfaction. Having an internallocus of control (believing one
has control over her\his own life, as opposed to outside forces having control) leads to higher job
satisfaction. Finally, lower levels of neuroticism lead to higher job satisfaction[].
Two-Factor Theory (Motivator-Hygiene Theory)
Frederick Herzbergs Two factor theory (also known as Motivator Hygiene Theory) attempts to
explain satisfaction and motivation in the workplace This theory states that satisfaction and
dissatisfaction are driven by different factors motivation and hygiene factors, respectively. An
employees motivation to work is continually related to job satisfaction of a subordinate.
Motivation can be seen as an inner force that drives individuals to attain personal and
organization goals (Hoskinson, Porter, & Wrench, p.133). Motivating factors are those aspects of
the job that make people want to perform, and provide people with satisfaction, for example
achievement in work, recognition, promotion opportunities. These motivating factors are
considered to be intrinsic to the job, or the work carried out. Hygiene factors include aspects of
the working environment such as pay, company policies, supervisory practices, and other
working conditions
While Hertzberg's model has stimulated much research, researchers have been unable to reliably
empirically prove the model, with Hack man & Oldham suggesting that Hertzberg's original

48

formulation of the model may have been a methodological artifact. Furthermore, the theory does
not consider individual differences, conversely predicting all employees will react in an identical
manner to changes in motivating/hygiene factors. ] Finally, the model has been criticized in that it
does not specify how motivating/hygiene factors are to be measured.
According to Herzberg following factors acts as motivators:
Achievement,
Recognition,
Advancement,
Work itself,
Possibility of growth, &
Responsibility.
Hygiene factors are :
Company policy & administration,
Technical supervision,
Inter-personal relations with supervisors, peers & Subordinates,
Salary.
Job security,
Personal life,
Working Conditions, &
Status.

49

Need Fulfillment Theory :

Under the need-fulfillment theory it is believed that a person is satisfied if he gets what he wants
& the more he wants something or the more important it is to him, the more satisfied he is when
he gets it & the more dissatisfied he is when he does not get it. Needs may be need for personal
achievement, social achievement & for influence.
a) Need for personal achievement :
Desires for personal career development, improvement in one's own life standards, better
education & prospects for children & desire for improving one's own work performance.
b) Need for social achievement :
A drive for some kind of collective success is relation to some standards of excellence. It is
indexed in terms of desires to increase overall productivity, increased national prosperity, better
life community & safety for everyone.
c) Need for influence :
A desire to influence other people & surroundings environment. In the works situation, it means
to have power status & being important as reflected in initiative taking and participation in
decision making.
In summary, this theory tell us that job satisfaction is a function of, or is positively related to the
degree to which one's personal & social needs are fulfilled in the job situation.

50

Social References - Group Theory :

It takes into account the point of view & opinions of the group to whom the individual looks for
the guidance. Such groups are defined as the 'reference-group' for the individual in that they
define the way in which he should look at the world and evaluate various phenomena in the
environment (including himself). It would be predicted, according to this theory that if a job
meets the interest, desires and requirements of a person's reference group, he will like it & if it
does not, he will not like it.
A good example of this theory has been given by C.L. Hulin. He measures the effects of
community characteristics on job satisfaction of female clerical workers employed in 300
different catalogue order offices. He found that with job conditions held constant job satisfaction
was less among persons living in a well-to-do neighborhood than among those whose
neighborhood was poor. Hulin, thus provides strong evidence that such frames of reference for
evaluation may be provided by one's social groups and general social environment.

51

OBJECTIVE OF THE STUDY

52

OBJECTIVES

The objective of the study is to find out the satisfaction level of employee in Amaravathi Textiles.

To find that whether the employees are satisfied or not.

To analyse the companys working environment.

To check the Degree of satisfaction of employees.

To find that they are satisfied with their job profile or not.

To study the relationship between the personal factors of the Employee (Income,
Designation, Educational qualification, Gender, etc.,)

53

RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the problem. It may be understood has a
science of studying how research is done scientifically. In it we study the various steps that all
generally adopted by a researcher in studying his research problem along with the logic behind them.
The scope of research methodology is wider than that of research method.

Meaning of Research
Research is defined as a scientific & systematic search for pertinent information on a specific
topic. Research is an art of scientific investigation. Research is a systemized effort to gain new
knowledge. It is a careful inquiry especially through search for new facts in any branch of
knowledge. The search for knowledge through objective and systematic method of finding solution
to a problem is a research.

RESEARCH DESIGN
A research is the arrangement of the conditions for the collections and analysis of the data in a
manner that aims to combine relevance to the research purpose with economy in procedure. In fact,
the research is design is the conceptual structure within which research is conducted; it constitutes
the blue print of the collection, measurement and analysis of the data. As search the design includes
an outline of what the researcher will do from writing the hypothesis and its operational implication
to the final analysis of data.
The design is such studies must be rigid and not flexible and most focus attention on the following 2;

54

Research Design can be categorized as:

TYPES OF RESEARCH
DESIGN

EXPLORATORY
RESEARCH
DESIGN

DESCRIPTIVE
&
DIAGNOSTIC
RESEARCH DESIGN

EXPERIMENTAL
RESEARCH
DESIGN

The present study is exploratory in nature, as it seeks to discover ideas and insight to brig out new
relationship. Research design is flexible enough to provide opportunity for considering different
aspects of problem under study. It helps in bringing into focus some inherent weakness in enterprise
regarding which in depth study can be conducted by management.

DATA COLLECTION
For any study there must be data for analysis purpose. Without data there is no means of study. Data
collection plays an important role in any study. It can be collected from various sources. I have
collected the data from two sources which are given below:
1.

Primary Data

Personal Investigation

55

Observation Method

Information from correspondents

Information from superiors of the organization

2.

Secondary Data

Published Sources such as Journals, Government Reports, Newspapers and Magazines etc.

Unpublished Sources such as Company Internal reports prepare by them given to their analyst
& trainees for investigation.

Websites like Amaravathi Textiles official site, some other sites are also searched to find data.

Scope Of The Study

The scope of the study is very vital. Not only the Human Resource department can use the facts and
figures of the study but also the marketing and sales department can take benefits from the findings
of the study.
Scope for the sales department
The sales department can have fairly good idea about their employees,tat they are satisfied or not.
Scope for the marketing department
The marketing department can use the figures indicating that they are putting their efforts to plan
their marketing strategies to achieve their targets or not.
Scope for personnel department
Some customers have the complaints or facing problems regarding the job. So the personnel
department can use the information to make efforts to avoid such complaints.
Sample Size :Questionnaire is filled by 100 employees of Amaravathi textiles.

56

The questionnaire was filled in the office and vital information was collected which was then
subjects to:

A pilot survey was conducted before finalizing the questionnaire.

Data collection was also done with the help of personal observation.

After completion of survey the data was analyzed and conclusion was drawn.

At the end all information was compiled to complete the project report.

57

DATA ANALYSIS & INTERPRETATION

Table No: 1
Working hours are convenient for me
PERCENT
Strongly agree

34

Agree

32

Neither agree nor disagree

18

Disagree

13

Strongly disagree

TOTAL

100

CHART 1

Interpretation:
From the above chart and table it is clearly evident that 34% of the respondents strongly agree
that working hours are convenient from them and 32% agree with that and 18% neither agree nor
disagree and 13% disagree with the working hours and 3% are strongly against working
hours.
Table No: 2

58

I'm happy with my work place

PERCENT
30
39
18
8
5
100

Strongly agree
Agree
Neither agree nor disagree
Disagree
Strongly disagree

Chart 2

Interpretation:
From the above table it is clear that 30% respondents strongly agree and 39% respondents agree
that they are happy with their work place only 13% disagreed and 18% have no idea towards
their work place.

Table No: 3
I feel i have too much work to do

59

PERCENT
7
9
25
37
22
100

strongly agree
Agree
Neither agree nor disagree
Disagree
Strongly disagree
Chart 3

Interpretation:
From the above table it is quite clear that the work load is not high, 37% of the respondents
disagreed with the question I feel I have too much work and another 22% strongly disagreed,
18% admits they have too much work and 23% have no idea towards this question.

Table No: 4
Safety measures provided by the company
PERCENT
28
31

strongly agree
Agree

60

Neither agree nor disagree

Disagree
Strongly disagree
TOTAL

24
11
6
100

CHART 4

Interpretation:
From the above table it is evident that the safety measures provided by the organizations are
good as 28 and 31% of the respondents agree with that and only 11& 6% disagreed and 24%
neither agreed nor
disagreed.

TABLE NO. 5
My relationship with my supervisor is cordial
PERCENT
30
41
16

strongly agree
Agree
Neither agree nor disagree
61

Disagree
Strongly disagree
TOTAL

6
7
100

CHART 5

Interpretation:
From the above table it is clear that relationship between employees and their supervisors are
cordial because 30% of respondents strongly agreed to it and 41% agreed to it and only 13%
disagreed and 16% of respondents have neither agreed nor disagreed.

TABLE NO 6
My supervisor is not partial
PERCENT
18
30
15
19
18
100

strongly agree
Agree
Neither agree nor disagree
Disagree
Strongly disagree
TOTAL

62

CHART 6

Interpretation:
From the above table it is evident that the supervisors are not partial to the employees as 18%
strongly agreed and 30% agreed to the question but 19% disagreed and 18% strongly disagreed
this level is quite high compared to other questions.

TABLE NO 7
My supervisor considers my idea too while taking decision
PERCENT
26
43
26
2
3
100

strongly agree
Agree
Neither agree nor disagree
Disagree
Strongly disagree
TOTAL
CHART 7

63

Interpretation:
From the above table it is clear that 26 and 42% of the respondents agree that supervisors
consider their employees ideas also and only 5% disagreed and 26% neither agreed nor
disagreed.

TABLE NO 8
I'm satisfied with the support from my co-workers
PERCENT
21
47
16
9
7
100

strongly agree
Agree
Neither agree nor disagree
Disagree
Strongly disagree
TOTAL
CHART 8

64

Interpretation:
From the above table it is clear that relation with co-workers is quite good as nearly 68% of the
respondents agree that they are satisfied with support from co-workers and only 15% disagreed
and 16% have no answer to this.

TABLE NO 9
People here have concern from one another and tend to help one another
PERCENT
26
41
19
9
5
100

strongly agree
Agree
Neither agree nor disagree
Disagree
Strongly disagree
TOTAL
CHART 9

65

Interpretation:
From the above table it is clear that in this organization people have concern over each other as
26% strongly agreed and 41% agreed and only 14% disagreed and 19% neither agreed nor
disagreed.

TABLE NO 10
I'm satisfied with the refreshment facilities
PERCENT
26
20
30
15
9
100

strongly agree
Agree
Neither agree nor disagree
Disagree
Strongly disagree
TOTAL
CHART 10

66

Interpretation:
From the above table it is clear that 26% employees are strongly satisfied with the refreshment
facilities offered by the company as 15% of respondents disagreed and 9% strongly disagreed
and 30% neither agreed nor disagreed and only 20% agreed.

TABLE NO 11
We are provided with the rest and lunch room and they are good

PERCENT
16
34
22
20
8
100

strongly agree
Agree
Neither agree nor disagree
Disagree
Strongly disagree
TOTAL
CHART 11

67

Interpretation:
From the above table it is quite evident that 8% strongly disagreed and 20% of the respondents
disagreed and 22% neither agreed nor disagreed and only 50% of the respondents are satisfied
with the rest and lunch room provided.

TABLE NO 12
The parking space for our vehicles are satisfactory
PERCENT
4
9
24
32
31
100

strongly agree
Agree
Neither agree nor disagree
Disagree
Strongly disagree
TOTAL
CHART 12

68

Interpretation:
From the above table it is clear that respondents are not satisfied with the parking facilities
provided by the company as 31% of respondents strongly disagreed and 32% of respondents
disagreed and only 13% of respondents are satisfied with the parking facilities and 24%
have neither agreed nor disagreed.

Table no 13
I fell I'm paid a fair amount for the work i do
PERCENT
15
39
25
13
8
100

strongly agree
Agree
Neither agree nor disagree
Disagree
Strongly disagree
TOTAL
Chart 13

69

Interpretation:
From the above table it is evident that the respondents are satisfied with their salary as 39%
agree and 15% strongly agree. Only 3% disagree and 8% strongly disagree, 25% neither agree
nor disagree.

Table no 14
I'm satisfied with the chances for my promotion

PERCENT
27
43
13
9
8
100

strongly agree
Agree
Neither agree nor disagree
Disagree
Strongly disagree
TOTAL
Chart 14

70

Interpretation:
From the above table it is quite clear that employees are satisfied with their chances for
promotion as 43% agree and 27% strongly agree. Only 9% disagree and 8% strongly disagree,
13% neither agree nor disagree.

Table no 15
I'm satisfied with the allowances provided by the organization
PERCENT
19
42
21
11
7
100

strongly agree
Agree
Neither agree nor disagree
Disagree
Strongly disagree
TOTAL
Chart 15

71

Interpretation:
From the above table it is clear that the employees are satisfied with the allowances and other
benefits provided by the organization as 42% agree and 19% strongly agree. Only 11% disagree
and 7% strongly disagree, 21% neither agree nor disagree.

TABLE NO 16
I feel my boss motivate me to achieve the organizational goals
PERCENT
11
33
25
22
9
100

strongly agree
Agree
Neither agree nor disagree
Disagree
Strongly disagree
TOTAL
CHART 16

72

Interpretation:
From the above table it is evident that employees boss are motivating to achieve organizational
goals as 33% agree and 11% strongly agree. 22% disagree this is quite high compared to other
factors and 9% strongly disagree and 25% neither agree nor disagree.

TABLE NO 17
My supervisor motivates me to increase my efficiency at times when i'm not

PERCENT
18
44
18
13
7
100

strongly agree
Agree
Neither agree nor disagree
Disagree
Strongly disagree
TOTAL
CHART 17

73

Interpretation:
From the above table it is evident that employees boss motivates the employee when he is
unproductive and help him to be productive as 44% agree and 18% strongly agree. Only 7%
strongly disagree and 7% disagree, 18% neither agree nor disagree.
.

TABLE NO 18
I feel that my job has little impact on the success of the company
PERCENT
35
40
10
9
6
100

strongly agree
Agree
Neither agree nor disagree
Disagree
Strongly disagree
TOTAL
Chart 18

74

Interpretation:
From the above chart it is clear that 75% respondents are think that they contribute in the success
of a company, 9% respondent disagree from the statement and 6% respondent strongly disagree
from the question.

Table no 19
Overall I'm satisfied with my job
PERCENT
28
35
20
12
5
100

strongly agree
Agree
Neither agree nor disagree
Disagree
Strongly disagree
TOTAL
Chart 19

75

Interpretation:
From the above table it is evident that Overall satisfactions of the respondents are good as 35%
agree and 28% strongly agree. Only 5% strongly disagree and 12% disagree and 20% neither
agree nor disagree.

FINDINGS

From the study, the researcher has come to know that most of the respondents have job
satisfaction; the management has taken the best efforts to maintain cordial relationship with the
employees. Due to the working conditions prevailing in this company, job satisfaction of each
respondent seems to be the maximum. From the study, I have come to know that most of the
employees were satisfied with the welfare measures provided by AMARAVATHI TEXTILES.
The employees of AMARAVATHI TEXTILES get more benefits compare to other companies.

The respondents are satisfied with the environment and nature of work

76

factors .

The respondents relationship with the superiors and colleagues are quite
good .

The Respondents are not provided with proper welfare facilities.

The communication and motivation of employees by their superiors in

this organization is reasonable.

The Pay and promotion activities in this organization is also good .

The Respondents are overall satisfied with their job

The Parking facilities provided by the organization are not good thats
why most respondents disagree with this question.

The refreshment facilities are also need to be improved

SUGGESTION AND RECAMANDATION

In the organization most of employees are satisfied with all the facilities provided by company.
But there are some employees also who are not satisfied with the company. Management should
try to convert unsatisfied employees in to satisfied employees. Because if employee is not
satisfied than the he is not able to give his 100% to his work and the productivity of employee
decrease. So management should try to satisfied his employees because employees are the assets
of the company not a liabilities.

77

LIMITATIONS OF THE STUDY

Limitation are as follows Data collected is based on questionnaire.
The number of employees in Amaravathi Textiles is more, so sample size is limited by 100.
The information collected by the observation method is very limited.
The result would be varying according to the individuals as well as time.
Some respondents hesitated to give the actual situation; they feared that management would
take any action against them

78

 The findings and conclusions are based on knowledge and experience of the respondents
sometime may subject to bias.

BIBLIOGRAPHY
BOOKS:

Ashwathapa K., Human Resource Management (third edition), Tata Mc Graw Hill

Publication Company Ltd.

Chhabra. , T. N. Human Resource Management, Dhanpat Rai $Co(P)Ltd. India, ninth

edition.

79

Kothari C.R., Research Methodology, New Delhi; New Age International Publication, second
edition.

Web-Site:www.Amaravathi Textiles.com
www.google.com

ANNEXURE

Questionnaire
A study on Job Satisfaction of Employees in AMARAVATHI TEXTILES, IP JAGDISHPUR
1. Name:

80

2. Age:
3. Gender: Male
Female
4. Designation..
Ques1- Working hours are convenient for me1 strongly agree 2 agree 3 neither agree nor disagree 4 disagree 5 strongly disagree
Ques2- I am happy with my work place1. strongly agree 2. agree 3.neither agree nor disagree 4. disagree 5. strongly disagree
Ques3- I feel I have too much work to do1. strongly agree 2. agree 3.neither agree nor disagree 4. disagree 5. strongly disagree
Ques4- Safety measures provided by the company are good1. strongly agree 2. agree 3.neither agree nor disagree 4. disagree 5. strongly disagree
Ques5- My relationship with my supervisor is cordial1. strongly agree 2. agree 3.neither agree nor disagree 4. disagree 5. strongly disagree
Ques6- My supervisor is not partial1. strongly agree 2. agree 3.neither agree nor disagree 4. disagree 5. strongly disagree
Ques7- My supervisor consider my ideas while taking decision1. strongly agree 2. agree 3.neither agree nor disagree 4. disagree 5. strongly disagree
Ques8- I am satisfied with the support from my coworkers1. strongly agree 2. Agree 3.neither agree nor disagree 4. disagree 5. strongly disagree
Ques9- People here have concern from one another and tend to help1. strongly agree 2. agree 3.neither agree nor disagree 4. disagree 5. strongly disagree

81

Ques10- I am satisfied with the refreshment facility1. strongly agree 2. agree 3.neither agree nor disagree 4. disagree 5. strongly disagree
Ques11- We are provided with the rest and lunch room and they are good1. strongly agree 2. agree 3.neither agree nor disagree 4. disagree 5. strongly disagree
Ques12- The parking spaces for vehicles are satisfactory1. strongly agree 2. agree 3.neither agree nor disagree 4. disagree 5. strongly disagree
Ques13- I feel I am paid a fair amount for the work I do1. strongly agree 2. agree 3.neither agree nor disagree 4. disagree 5. strongly disagree
Ques14- I am satisfied with the chances for my promotion1. strongly agree 2. agree 3.neither agree nor disagree 4. disagree 5. strongly disagree
Ques15- I am satisfied with the allowances provided by the organization1. strongly agree 2. agree 3.neither agree nor disagree 4. disagree 5. strongly disagree
Ques16- I feel my boss motivate me to achieve the organizational goals1. strongly agree 2. agree 3.neither agree nor disagree 4. disagree 5. strongly disagree
Ques17- My supervisor motivate me to increase my efficiency at a time when I am not1. strongly agree 2. agree 3.neither agree nor disagree 4. disagree 5. strongly disagree
Ques18- I feel my job little impact on the success of the company1. strongly agree 2. agree 3.neither agree nor disagree 4. disagree 5. strongly disagree
Ques19- Overall I am satisfied with my present job1. strongly agree 2. agree 3.neither agree nor disagree 4. disagree 5. strongly disagree

82

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