Chapter – 1

INTRODUCTION

1.1. Introduction:

Rubber is a versatile product with multiple usages. It is grown in various countries worldwide
and plays a crucial role in the Indian economy too. India is one of the leading rubber
producers in the world.

India is considered to be one of the key players in the global rubber business. The
entire requirement of rubber based industries for natural rubber, synthetic rubber, rayon and
nylon tire cord, steel cord, carbon black and rubber chemicals, etc is being met from
indigenous sources. Rapid progress has also been made in the production of natural rubber.

Rubfila International Limited, kanjikode, an ISO 9001:2008 certificate export

recognized company with best material management practices, best pollution control
measures and environmental policies is the market leader of rubber thread industries of India.
It is the best quality rubber thread producer in the country. It manufactures talc coated rubber
thread, where it is the only manufacturer of silicon coated rubber threads in India. Rubber
threads are used for a number of applications such as apparels, food grade, furniture grade,
bungee jumping, diapers, toys, etc.

1.2. Scope of the Study:

The scope encompasses both geographical and conceptual boundaries. The study is useful in
accessing the quality and performance of the company. The study helps to familiarize the

rubber industry and also the present position of the company.

1.3. Period of Study:

This study has been conducted for a period of one month at Rubfila International Limited,
Kanjikode. Starting from 24th April, 2018 till 24th May, 2018.

1
1.4. Objectives of the Study:

Primary Objectives

1. To get in touch with industrial and organisational environment

2. To understand the actual working condition in the organisation

Secondary Objectives

1. To familiarize with the organisation

2. To know about the functions and duties of the departments
3. To learn the organisational behavior
.
1.5. Study Plan:
Table No. 1.1: Study Plan
Weeks Study Plan
Week 1 1. Introduction on Rubfila international Ltd. and its various
departments.
Week 2 1. Session on Production Departments and Quality Assurance
Department.

Week 3 1. Session on Finance, Human Resource, Material Management

and Marketing Department
Week 4 1. Brief study on Annual Reports and Previous Projects.
2. Completed the SWOT analysis.

1.6. Sources of Data Collection:

This organisation study includes both primary and secondary sources. The primary data
collection method includes personal interview with officers, employees and interns etc.
Secondary data collection method includes information collected from internal records,
financial magazines and websites (official and private websites), annual reports, etc.

2
1.7. Limitations of the Study:

The main challenges faced are:

1. Though limited availability of time is challenge for complete study of departments, it

also gave the understanding and need for time management and to prioritise things.
2. The busy schedule of officials was another challenge for conducting discussion and
interview with them.
3. Spread of production units was a challenge in deep study.
4. Revamping of organisation was under process which restricted in learning more as
many of its departments needed approval from Board of Directors.

3
 Chapter – 2:

INDUSTRY PROFILE

2.1. Introduction:

Natural rubber, also called India rubber, as initially produced, consists of suitable
polymers of the organic compound isoprene, with minor impurities of the other organic
compounds plus water. Forms of poly isoprene that are useful as natural rubbers are classified
as elastomers. Currently, rubber is harvested mainly in the form of latex from certain trees.
The latex is sticky, milky colloid drawn of by making incisions into the bark and collecting
the fluid in the vessels in a process called “tapping”. The latex then is refined into rubber
ready for commercial processing. Natural rubber is used extensively in many applications and
products, either alone or in combination with other materials. In most of its useful forms, it
has a large stretch ratio, high resilience and is extremely waterproof.

Varieties:

The major commercial source of natural rubber latex is the para rubber tree
(Heveabrasiliensis), a member of spurge family, Euphorbiaceae. This species is widely used
because it grows well under cultivation and a properly managed tree response to wounding by
producing more latex for several years.

Many other plants produce forms of latex rich in isoprene polymer, though not all
produce useful forms of polymer as easily as the para rubber tree does; some of them require
more elaborate processing to produce anything like useable rubber, and most are more
difficult to tap.

2.1.1. Properties;
a. Rubber latex

Rubber exhibits unique physical and chemical properties. Rubber strain crystallizes,
due to the presence of double bond in each repeat unit, natural rubber is susceptible to
vulcanization and sensitive to ozone cracking. The two main solvents for rubber are
turpentine and naphtha (petroleum). The former has been in use since 1764 when Francois
Fresnau made the discovery. Giovanni Fabbroni is credited with the discovery of naphtha as

4
rubber solvent in 1779. Because rubber does not dissolve easily, the material is finely divided
by shredding prior to its immersion. An ammonia solution can be used to prevent the
coagulation of raw latex while it is being transported from its collection site.

b. Elasticity

On a microscopic scale, relaxed rubber is a disorganized cluster of erratically

changing wrinkled chains. In stretched rubber, the chains are almost linear. The restoring
force is due to the preponderance of wrinkled conformations over more linear ones. Cooling
below the glass transition temperature still permits local conformational changes but a
reordering is practically impossible because of the larger energy barrier for the concerted
movement of longer chains.”Frozen” rubber’s elasticity is low and strain results from small
changes of bond lengths and angle.

c. Biosynthesis

Rubber particles are formed in the cytoplasm of specialized latex-producing cells

called lacticifers within rubber plants. Rubber particles are surrounded by a single
phospholipid membrane with hydrophobic tail’s pointed inward. The membrane allows
biosynthetic proteins to be sequestered at the surface of growing rubber particle, which allow
new monomeric units to be added from outside the bio-membrane, but within the laccticifer.
The rubber particle is an enzymatically active entity that contain three layer of material, the
rubber particle , a bio-membrane, and free monomeric units. The bio-membrane is held
tightly to the rubber core due to the high negative charge along the double bonds of the
rubber polymer backbone. Free monomeric units and conjugated proteins make up the outer
layer. The rubber precursor is isopentenyl pyrophosphate (an allylic compound), which
elongates by Mg 2+- dependent a condensation by the action of rubber transferase. The
monomer adds to the pyrophosphate end of the growing polymer. The process displaces the
terminal high energy pyrophosphate. The reaction produced a cis polymer. The inisiation step
is catalyzed by prenyl transferase, which converts three monomers of isopentenyl
pyrophosphate into farnesyl pyrophosphate. The farnesyl pyrophosphate can bind to rubber
transferase to elongate a new rubber polymer. The required isopentenyl pyrophosphate is
obtained from the mevalonate pathway, which is derived from acetyl-CoA in the cytosol.
Though rubber is known to be produced by only one enzyme, extracts of latex have shown
numerous small molecular weight proteins with unknown functions. The proteins possibly
serve as cofactors as the synthetic rate decreases with complete removal.

5
 2.1.2. Cultivation

Rubber is generally cultivated in large plantations. The economic life period of rubber
trees in plantations is around 32 years – up to 7 years of immature phase and about 25 years
of productive phase. The soil requirements of plant is generally well drained, whether soil
consisting of lateraite, lateritic types, sedimentary types, non lateritic red, or alluvial soils.
The climatic conditions for optimum growth of rubber trees are:

1. Rainfall of around 250cm evenly distributed without any marked dry season and with
at least 100 rainy days per year.
2. Temperature range of about 20-34°c with a monthly 24-28°c
3. High atmospheric humidity of around 80%
4. Bright sunshine amounting to about 2000hours per year @of 6hours per day
throughout the year
5. Absence of strong winds
6. Mainly high yielding clones have been developed for commercial planting. These
clones yield more than 2000kg of dried rubber hector per year, when grown under
ideal conditions
2.1.3. Collection

In places such as Kerala where coconuts are in abundance, the half shell of coconut is
used as the collection container for the latex, but glazed pottery or aluminium or plastic cups
are more common elsewhere. The cups are supported by a wire that encircles the tree. This
wire incorporates a spring so it can stretch as the tree grows. The latex is led into the cup by a
galvanized “spout” knocked in the bark. Tapping normally takes place early in the morning,
when the internal pressure of the tree is the highest. The latex , which contains 25-40% dry
rubber, is in the bark, so the tapper must avoid cutting right through the woods, else the
growing cambial layer will be damaged and the renewing bark will be badly deformed,
making later tapping difficult. It is usual to tap a panel at least twice, sometimes 3 times,
during the trees life. The economic life of the tree depends on how well the tapping is carried
out. The latex tubes in the barks ascent in a spiral to the right. For this reason tapping cuts
usually ascent to the left to cut more tubes. The trees will drip latex for about four hours,
stopping as latex coagulates naturally on the tapping cut, thus blocking the latex tubes in the
bark. Tappers usually rest and then start collecting the liquid “field latex” at about midday.
Some trees will continue to drip after the collecting and this leads to a small amount of “cup

6
lump” which is collected at the next tapping. The latex that coagulates on the cut is also
collected as “tree lace”. Tree lace and cup lump together account for 10-20% of the dry
rubber produced. Latex that drips on the ground, ”earth scrap”, is also collected periodically
for processing of low grade products.

2.2. Global Scenario:

RIL has a strong international presence with exports to 25 countries around the world
which include USA, Latin American countries and in Europe and Asia. RIL has been
able to carve a unique position in the International Market owing to its ability to
produce a wide variety of quality products. RIL's quality is acknowledged as one of the
best in the world.

2.3. Indian Scenario:

Rubfila is the undisputed market leader in India in Rubber Threads. The Indian
customers prefer RIL's products over others due to quality and other service aspects.
RIL has marketing offices at Mumbai, New Delhi, Kolkatta, Surat and Tirippur for
effective customer support and service.

2.4. State Scenario:

Kerala with a total population of 121.01 crore has high literacy rate of 93.9% reflecting
healthy social status, high life expectancy of 71 years, low infant mortality rate of 12,
and low school dropout rate. Per capita income in Kerala is Rs.56, 107 as compared
against the Rs.35, 993 of India. As a result, Kerala tops all the other Indian states in the
Human Development Index (HDI) score. The state has traditionally enjoyed strong
factor advantages in industries such as Rubber, Coir, Spices, Handlooms, Fisheries,
Agro Processing, and Tourism. Furthermore, the Healthcare and Education sector has
always been of importance in the Kerala’s socioeconomic milieu.

7
 Chapter – 3

COMPANY PROFILE

3.1 Introduction:

Rubfila International Limited is a public limited company promoted by Rubpro Sdn.

Bhd., Malaysia and Kerala state Industrial Development Corporation. The company which
started with manufacturing extruded round latex rubber thread later ventured in the
manufacturing of industrial adhesives used in various applications like footwear, leather
goods, lamination/ printing, carpet, construction, etc. The state of the art infrastructure
facility is located at Kanjikode, Palakkad, Kerala is the heartland of natural rubber.

The production facility of RIL is designed to produce both Talc coated rubber thread
(TCR) as well as Silicon coated rubber thread (SCR) and fine grade of eco-friendly water
based adhesive. RUL is the market leader in India in the business of rubber thread and is the
leading exporter of the product from India. RIL produces rubber threads for various
applications like apparel, food grade, furniture webbing, bungee jumping, toys, medical
netting, etc.

RIL produces adhesives suitable for various industrial segments like leather and
footwear, tire re-threading, wood, resin, foam, automotive, to name a few.

3.2 History of the Company:

Rubfila International Limited was incorporated on 5th March 1993 as a Public Limited
Company for the manufacture of 3,100 tpa of heat Resistant latex Rubber Thread. The
Company has its registered office at O.s. No.50 GCDA Complex, IVth
Floor,MarineDrive,Cochin-68031,Kerala.

3.2.1. Activity:
To carry on the business as manufacturers of rubber products and derivatives of
rubber including threads; manufactures of and dealers in all kinds of rubber products
and components used in connection therewith, and to manufacture, buy, sell, supply,
deal in and act as agents for all kin of rubber products.

8
 Subsidiaries:
The Company does not have any subsidiaries.
Promoters:
Rubfila International Limited has been promoted by Uniphoenix corporation Berhad
(Uniphoenix) of Malaysia-the core promoters and the Kerala State Industrial
Development Corporation Ltd.- the non-core promoters. Uniphoenix will be investing
in RIL through its subsidiary-Rubfil Sdn. Bhd., Malaysia.
3.3 Vision:
We will be recognized and respected as the “go-to” company for any customer who values
quality products and excellent service at a fair price.
3.4 Mission:
Rubfila International LTD provides quality products and services to our customers in order to
maximize and sustain long-term profitability. Doing so will benefit our company’s
customers, suppliers, employees, and shareholders.

3.5 Board of Directors:

Table No. 3.1: List of Board of directors

Name Designation Date of Appointment

Dhiren shah shevantilal 28 January 2009
Director

Chitra ramakrishnan 13 February 2015

Director

Samir kiritkuamr shah 26 September 2015

Director

Gopinathan pillai 27 October 2007

Managing Director
krishna kumar
Dattani bharat jamnadas 08 September 2005
Director

Thomas carlton 08 September 2005

Director
thompson III
Shaukat hasanali 15 September 2017
Director
merchant

9
 Nata rajan subramanian 28 October 2013
Director

Hardik bharat patel 05 July 2012

Director

Bharat jamnadas dattani 08 September 2005

Director

Patrick michael 25 June 2009

Director
davenport
Bharat jayantilal patel 08 September 2005
Director

3.6 Legal Framework:

Rubfila International Limited (RIL) is a Public Listed Company promoted by Rubpro

Sdn. Bhd., Malaysia along with Kerala State Industrial Development Corporation
(KSIDC) and has been in operation since 1994. The company is listed in Bombay Stock
Exchange (BSE) since1994.

Rubfila is the only Indian manufacturer to manufacture both Talcum Coated and
Silicon Coated Rubber threads. The company has adopted internationally accepted
quality standards and its products are well received among customers both in India as
well as around the world. RIL also produces premium products catering to highly niche'
areas like toys, fishing, catherers, meat packing, medical webbing, bungee jumping
cords etc. RIL produces threads with sizes ranging from 3.1mm (8 count) diameter to
0.23mm (110 count) diameter.

10
3.7 Product Portfolio, Markets and Technology:
3.7.2 Product Portfolio:

Table No. 3.2: List of Products

Sl.no Product
1 Talc Coated Rubber Thread (TCR)
2 Silicon Coated Rubber Thread (SCR)
3 Coloured Rubber Thread
4 Furniture Grade Rubber Thread
5 Rubber Thread For Medical Application
6 Rubber Thread For Food/ Meat Packing
7 Rubber Thread In Bobbins
8 Rubber Thread For Catheter Making
9 Heat Resistant Rubber Thread

3.8 Competitors:

Table No. 3.3: List of Competitors

Sl.no Competitor
1 Apcotex Industries Ltd.
2 Balaxi Ventures Ltd.
3 Cosco (India) Ltd.
4 Dolfin Rubbers Ltd.
5 Vikas Ecotech Ltd.
6 Vamshi Rubber Ltd.
7 Unimers India Ltd.
8 Tinna Rubber and Infrastructure Ltd.
9 Synthetics & Chemicals Ltd.
10 Swastik Rubber Products Ltd.
11 Rubber Products Ltd.
12 Magnus Rubber Industries Ltd.

11
 13 Rishiroop Rubber (International) Ltd.
14 Mahalaxmi Rubtech Ltd
15 Pix Transmissions Ltd

16 Rishiroop Ltd.
17 Eastern Treads Ltd
18 Elgi Rubber Company Ltd
19 GRP Ltd.
20 Indag Rubber Ltd.
21 M M Rubber Company Ltd.

3.9 Corporate Social Responsibility

1. RIL is involved in social activities for the betterment of society at large. RIL is actively
involved in conducting medical camps in nearby locality and providing educational aid
to the local institutions.
2. RIL also provides a meaningful platform in the field of technical? Management
institutions through interactions with the students. Established in Kerala, India’s heart
land of natural rubber, RIL has one of the best infrastructure to manufacture heat
resistant latex rubber thread to produce both Talc & Silicon coated rubber.
3. RIL monitors and selects raw materials with utmost care to ensure the quality of the
final product. To further ensure the stringent requirements of its customers, the
company went in for backward integration and established an in-house centrifuging
plant to customize the raw material for quality product.
4. The rubber thread produced by RIL strictly adhere to the global standards such as ISO
2321, ASTM 2433 and BSI 5421.

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3.10 Awards and Recognitions:
3.10.1. Quality Certification

Rubfila International Limited (RIL) is the first rubber thread plant in

the world to achieve the coveted ISO 9001 quality certification.

3.10.2. EMS Certification

RIL is committed to preserving the environment and keeps a continuous vigil on

environmental related matters. As a part of its endeavors in quality insurance &
environment safe guard, the company is certified with ISO 9001:2015 & ISO 14001 :
2015 by BVQI.

3.10.3. Oeko-Tex Certification:

Oeko-Tex certification is considered to be the gold standard for products in the textile
chain and Rubfila was the first company to get its product certified with this
prestigious recognition.

3.10.4. Export House Status:

Rubfila have been recognised as "Export House" by the Ministry of Commerce,

Government of India

3.10.5. Export Awards :

Right from the beginning of its operations, Rubfila’s products were well accepted in
the international market which has helped the company to have impressive list of
customers worldwide. This has resulted in many outstanding export performances for
which it has received many awards from reputed agencies like CAPEXIL (Chemical
and Allied Products Export Promotion Council of India), AIRIA (All India Rubber
Industries Association) and ICCI (Indian Chamber of Commerce and Industry).

13
 Chapter – 4

STUDY OF DEPARTMENTS

4.1. Organisation Structure

Organisational structure is a mainly hierarchical concept of subordination of entities that
collaborate and contribute to serve one common aim. Organisational structure allows the
expressed allocation of responsibilities for different functions and process to different entities
such as the branch, department, workgroup and individuals. Individuals in an organisational
structure are normally hired under time limited work contracted orders, or under permanent
employment contracts or program orders.

Managing
Director

Material Quality
Finanace HR Production Marketing
Management Assurance

Sales Maraketing
Manager Manager Manager Supervisor Manager
Executive Executive

Executive Executive Supervisor Clerk Executive

Workers

Fig. No. 4.1: Organisation Structure

14
4.2. Finance Department:
Finance is a field closely related to accounting that deals with the allocation of assets and
liabilities over time under conditions of certainty and uncertainty. Finance also applies and
uses the theories of economics at some level finance can also be defined as the science of
money management. A key point in finance is the time value of money, which states that
purchasing power of one unit of currency can vary over time. Finance aims to price assets
based on their risk level and their expected rate of return. Finance can be broken into three
different sub categories; public finance, corporate finance and personal finance. In other
words the part of an organization that manages its money. The business functions of a finance
department typically include planning, organizing, auditing, accounting for and controlling its
company's finances. The finance department also usually produces the company’s financial
statements.

Managing Director

Financial Manager

Executive Executive

Fig. No. 4.2: Structure of Finance Department

15
4.2.1. Roles of finance Department:
1. Ensure that there are adequate funds available to acquire the resources needed to help
the organisation achieve its objectives;
2. Ensure costs are controlled;
3. Ensure adequate cash flow
4. Establish and control profitability levels.

One of the major roles of the finance department is to identify appropriate financial
information prior to communicating this information to managers and decision makers, in
order that they may make informed judgments and decisions. Finance also prepares financial
documents and final accounts for managers to use and for, reporting Purposes.

4.2.2. Roles of CFO:

CFO (Chief Finance Officer) of an organisation is the back born of Finance department.
He have to perform 50 many duties But the core duties can be broken down into three major
components

1. Controllership duties
These make up the backward looking part of a CFO's job. Controller ship duties hold the
CFO responsible for presenting and reporting accurate and timely historical financial
information of the company he or she works for. Every stakeholder in the company -
including shareholders, analysts, creditors, employees and other members of management
- relies on the accuracy and timeliness of this information' It is imperative that the
information reported by the CFO is accurate because many decisions are based on it.

2. Treasury duties
The CFO is also responsible for the company's present financial condition. So he or she
must decide how to invest the company’s money, taking into consideration risk and
liquidity. In addition, the CFO oversees the capital structure of the company, determining
the best mix of debt, equity and internal financing. Addressing the issues surrounding
capital structure is one of the most important duties of a CFO.

3. Economic strategy and forecasting

Not only is a CFO responsible for a company’s past and present financial situation, he is
also an integral part of a company's financial future. ACFO must be able to identify and

16
 report what areas of a company are most efficient and how the company can capitalize on
this information. In other words, trying to predict the best way to ensure the company's
success in the future.
4.2.3. Roles of a Finance Manager:
A financial manager is a person who takes care of all the important financial functions
of an organization. The person in charge should maintain a farsightedness in order to ensure
that the funds are utilized in the most efficient manner. His actions directly affect the
Profitability, growth and goodwill of the firm. Following are the main functions of a financial
manager:

1. Raising of Funds
In order to meet the obligation of the business it is important to have enough cash and
liquidity. A firm can raise funds by the way of equity and debt. It is the responsibility of a
financial manager to decide the ratio between debt and equity. It is important to maintain
a good balance between equity and debt.

2. Allocation of Funds
Once the funds are raised though different channels the next important function is to
allocate the funds. The funds should be allocated in such a manner that they are optimally
used. In order to allocate funds in the best possible manner the following point must be
considered the size of the firm and its growth capability Status of assets whether they are
long term or short term mode by which the funds are raised. These financial decisions
directly and indirectly influence other managerial activities. Hence formation of a good
asset mix and proper allocation of funds is one of the most important activity

3. Profit planning
Profit earning is one of the prime functions of any business organization. Profit earning is
important for survival and sustenance of any organization. Profit planning refers to proper
usage of the profit generated by the firm. Profit arises due to many factors such as pricing
industry competition, state of the economy, mechanism of demand and supply cost and
output. A healthy mix of variable and fixed factors of production can lead to an increase
in the profitability of the firm. Fixed costs are incurred by the use of fixed factors of
production such as land and machinery. In order to maintain a tandem it is important to
continuously value the depreciation of cost of fixed cost of production. An opportunity
cost must be calculated in order to replace those factors of production which has gone

17
 through wear and tear. If this is not noted then these fixed cost can cause huge
fluctuations in Profit.

4. Understanding Capital Markets

Shares of a company are traded on stock exchange and there is a continuous sale and
purchase of securities. Hence a clear understanding of capital market is an important
function of a financial manager. When securities are traded on stock market there
involves a huge amount of risk involved. Therefore a financial manger understands and
calculates the risk involved in this trading of shares and debentures. Its on the discretion
of a financial manager as to how distribute the profits. Many investors do not like the firm
to distribute the profits amongst shareholders as dividend instead invest in the business
itself to enhance growth. The practices of a financial manager directly impact the
operation in capital market.

4.2.4. Objectives
1. To record all financial transaction of the organization.
2. To maintain all statutory financial record of the organization.
3. To consolidate the accounts of all units of the organization and prepare the balance
sheet statement.
4. To get the accounts audited and certified by the statutory auditor.
5. To liaise with tax authorities and banks.
6. To prepare and send the annual report to the government authorities.
7. To regularly scrutinize the accounts of other branches.
8. To report the financial performance of the organization to the management,
stakeholders and to comply with the rules and regulations of the government.

4.3 Human Resource Department:

RIL believes in empowerment in helping employees to reach their potential and consider
employees as the most valuable asset and are committed to the development of its people. All
has been practicing methods and practices for human resource development with utmost

18
respect to human values. The company has very cordial industrial relations with its
employees.

Managing
Director

HR Manager

HR Executive

Fig. No. 4.3: Structure of Human Resource Department

4.3.1 Transparent policies:

RIL’sendeavoristotheemployeeatransparentprocessofmanagingallHRprocessesincludingb
enefitsandadministrationwithanobjectivetoremain employee friendly and enable the
employee to focus on his core area of expertise, thus facilitating business growth. RIL
offers exciting opportunities and a challenging work atmosphere.

4.3.2 Recruitment:

1. Internal
Based on the recruitment for manpower notice will be displayed in the notice board,
inviting applications from the employees with requisite qualification and experience
for the vacant position. Interview will be conducted for the applied employees and if
suitable employees are identified she/he will be selected for the position.

2. If appropriate candidate is not identified internally, the HR department will invite

suitable candidates with corresponding job profile, either from the data bank,

19
 manpower consultant, and blank application form or through newspaper
advertisement.

4.3.3 Selection:
In selection the first process is receiving the blank application forms. After receiving
blank application form, scrutinizing the application received. After this candidates with
suitable qualifications will be called for personal interview.

The candidates attending the interview shell fill the bio data blank at the time of interview
and the following procedures are observed:

1. Verification of original testimonial along with passport size photo

2. Assessment of candidate through interview evaluation sheet

Once the interview is over, suitable candidate are shortlisted and the interview evaluation
sheet will be forwarded to the managing director of approval. After getting the sanction
from the M.D., appointment orders will be forwarded to the managing director for approval,
After getting the sanction from the M.D, appointment orders will send to the selected
candidates for following duty.

4.3.4 Placement:
The procedures followed for candidates joined for duty are:
Joined report Service enrolment record Application for training Bond in the prescribed
formats Personal details ESIC declaration forms duly filled up PF nomination form duly
filled up, Issue of punching cards copies of testimonials Conduct certificate and medical
fitness certificate issue of leave card. After completing the necessary formalities for joining,
the candidate will be taken to the concerned HOD and after obtaining necessary guidance;
she/he will be placed in the respective departments. The particulars of the candidates ale
recorded in the statutory registers such as muster roll, register of employees, ESIC register
etc. Personal file in respect to the employee will be maintained in the HR department after
the verification of the same.

20
 4.3.5 Induction:
As per the ISO standards, and as part of the on the job training, as and when
employee join for the duty, he/she will be provided with induction training syllabus for the
concerned HOD after a month from the date of joining and the same will be submitted to
the HR department, who in turn will access the employee based on the rating by the HOD.
If the rating even by the HOD to the employee is not up to the standard of requirement, the
induction training for the employee will be extended accordingly.

4.3.6 Transfer/ Promotion:

Any employee joining the company is liable to be transferred to any of the branches,
subsidiaries, sister concerns, departments assisting or to be started future in anywhere in
India/abroad at the sole discretion of the management

1. Internal transfer
Any requirement for transfer among organization has to be supported with the
departments within the written application from the HOD’s of the department which
an employee is transferred and the department to which he/she is transferred. This
written application has to be forwarded to the managing director for approval through
HR department.

2. Promotion
Promotion of an employee to a higher grade will be supplemented by one year
probation in the new grade and he/she will be confirmed only on successful
completion of probation period.

4.3.7 Training and Development:

RIL systematically plans for the development of every individual employee through
training and job rotation opportunities. The annual training calendar is drawn up with
focus on technology and management to improve the skills of the employees in
technical, functional & behavioural areas. Employees undergo regular training and are
exposed to the latest development in their areas of expertise. For this 300 man days
per year training programs are conducted' RIL has in house training experts and also
engages external faculty to deliver cutting edge inputs to our employees.

21
 1. In house training:
Based on the identified training needs of the employees and as per the training plan
every year, in house training will be imparted to the employees on various subjects.
The faculties from reputed training institutions will conduct the training. After the
completion of training, assessment forms will be issued to the concerned HOD's and
the same will be collected after assessment of the employees within 6 months from
the date of training.

2. External training:
Employees will be deputed for various training programs, on their respective subjects,
to various training institutions. As soon as training brochures are received from the
institutions, the same will be forwarded tothe DGM and MD for approval and upon
sanction' the employees mentioned there in will be send for training accordingly.
Necessary records pertaining to the training such as training logbook, training
syllabus/manual, training class attendance, training assessment, induction review etc.
are maintained in the HR department.

4.3.8 Training class absenteeism:

Training is conducted based on the training needs identified by the HOD’s for all
employees as part of compliance of ISO 9000 standards. The employees not attending the
training program as per the directions of the HOD’s/Section heads as well as training
schedule:
1. Will be considered absent even though leave is sanctioned for the day of absence.
2. suitable disciplinary action will be initiated as envisaged in terms and conditions of
employment.
3. Increment cut and denial of further promotions in future.

4.3.9 Shift timing:

25-30 Workers are there for each shift

22
4.3.10 Out pass permission:
Employees leaving the factory office shall submit the out Pass or permission slip duly
sanctioned by the HOD to the security at the main gate. No employee shall be
permitted to leave the company Premises without pass with authorized signatory.
Permission and leave cannot he combined. Permission for late coming cannot be
taken during the commencement of e shift. An employee is allowed permission for
late coming or early leaving for a maximum of 3 hours in a month in only 3 chances,
subject to a maximum of l hour a day. Those exceeds the limits of either 3 hours or
3chances shall not be allowed further permission for that month and CL/PL in credit
shall be debited in his/her account for that month as follows:
3-4hours - half day leave
4-8hours - one day

4.3.11 RIL Welfare Fund:

1. Membership and subscription
a. The membership to the scheme is optional
b. TheentrancefeeshallbeRs.l20pernewmembersanditisaonetimepayment.
c. Membership contribution from the employees will be Rs.40
d. The amount will be recovered every month from the salary or wages Payable.
2. Funds
The fund shall consist of the following contribution
a. Entrance fee/membership fee
b. donation
c. bank interest
d. fee and subscription
e. employees monthly receipts and payments

4.3.12. Financial Benefits:

1. Personal Loan:
a. Loan amount for Rs.2000/5000 will be given to the members completing one year
and will be recovered at a flat interest rate of 5%-10%
b. Loan application should be supported with a guarantor who shall be the
member of the fund he/she shall not have any loan pending.

23
 c. Loan will be sanctioned only to those who don't have a pending loan and for those
having taken home salary more than 50% of the gross salary
d. Closing of the loan will be entertained only on 20th and 2lst of every month, fresh
loan will be sanctioned only once an employee closes an existing loan.

2. Funeral Assistance:
Non recoverable amount rs.1000 during the demise/dependent parents of the employee
and to the deceased employee's family member.

3. Education Loan:
It is interest free educational loan of Rs 2000 to the children of eligible members
that will be recovered in 10 equal instalments. This will be dispersed on 17thand
18thofJune every year.
Employees category Medi claim Personal Premium payable
accident Employer employee
GM/AGM 500000 750000 1879 1063
Managers 200000 500000 1604 1603
Asst. Managers 175000 400000 1421 945
Executives & C1 and C2 150000 300000 1237 827

Table 4.1. Education Loan

4. Medi Claim Policy:

Al1 the members are issued a medi claim policy for inpatient treatment after entering into
a tie up with one of the subsidiaries of General Insurance corporation. The premium of
the policy will be paid from the RIL Welfare Fund. This floater policy will be given for 4
members of an employee’s family including employee for Rs50000 a year.

5. Canteen:
The tea/snacks and milk will be supplied outside the plant at 3 points viz, centrifuge,
compounding, boiler and logistics.

Iddli will be supplied only from the canteen and no spot supply will be made at the shop
floor. Company guests and officials shall have food from the canteen only through guest
coupons. The respective departments head shall sign the coupon. Payment shall be made

24
 to the canteen contractor only on the basis of coupons. Following are the food timings for
each shift.
Table No. 4.2: Canteen Timing

SHIFT BREAKFAST LUNCH DINNER

A 8.00- 8.30 After 2pm

B Before 2pm 7.30- 8.30

C Before 8am 1 pm-3pm

6. Medical Benefits Scheme:

It is provided by the company to ensure the welfare of all the category of employees
and their dependents by providing them with free outpatient treatment. Company has
entered into tie up with M/s Palana Institute of Medical Sciences and Lakshmi Hospital,
Kannadi, Palakkad which provides OP Treatment up to Rs5000 per annum.

7. ESI Medi Claim Accident Policy:

Employees coming under the purview of the provisions of the Employees State
Insurance Act are to be the members of the ESI Corporation and contributors are to be
remitted on account of the such member by the employer in the ratio of 4.75%(employer)
and 1.75% (employee). The maximum salary limit fixed for the coverage is Rs.7500. Such
employees can avail ail the benefits given under the provisions of the said Act.

8. Maternity Benefit Scheme:

Objective: To ensure that the absence in service due to maternity is rightly recognized
and respected and thereby to protect the dignity of motherhood.

Applicability: All married women employees who are on the rolls of the company
including probationers.

Eligibility:
1. Employees should have worked for 80 days during the 12 months immediately
preceding her expected date of confinement.
2. Days of layoff, if any approved holidays and authorized leave will be considered
as days worked for the purpose of calculation.

25
 Benefit Period:
1. Period of 12 weeks in which minimum 6 weeks should be immediately following
the date of confinement
2. For the purpose of this scheme miscarriage /medical termination of pregnancy will
also be treated as Maternity Benefit Period

Benefits under the scheme: Maternity benefits period will be considered as a authorized
leave. This period will be treated as physically present days for qualifying the eligibility
criteria for 240 days to avail annual increment privilege leave etc.
Maternity benefit scheme as per the scheme will not be treated as break in service. All
the benefits as per either Employees State Insurance Act of 196l whichever is
applicable will be valid to the employees who fail under this scheme.
1. Safety and health
2. Medical treatment and employment injury
3. Educational Assistance Scheme

4.3.13. Corporate Social Responsibility:

The Corporate Social Responsibilities of the company consists of following activities.

1. Building Schools:
Building Schools is one of the most important CSR Activity of Rubfila International
Limited. Till now the company has built about l5 schools

2. Giving training:
The company provides a lot of opportunity to the building young talents from the field
of engineering and management to study the know how’s of their own trades. The
company provides enough training to these aspirants to excel in their field of interest.

3. Medical Camps:
The company conducts medical camps in needy places once in a month which proved
1o be very effective and sometimes it has helped to drag a lot of people from the
month of death to the light of life.

26
 4.3.14. Performance Appraisal:
The company follows key result area analysis performance. The managers do the
performance appraisal of the workmen and others. The managers and M.D appraise
themselves on the basis of key result areas. A form is used for this purpose. Different
forma are used for different departments. Performance appraisal is done on the basis of
some criteria those are
1. Job performance
2. Communication skills
3. Team spirit
4. Initiative
5. Attitude
6. Dependability
7. Leadership

The rating is done by themselves and the HOD's of the concerned departments. Then the
comments are note down and suggestions for improving such as training needs are
identified. The rating is based4 point scale that is

4.3.15. Quality Circle:

Quality circle is introduced recently it is a voluntary group of shop floor workers put
forward some suggestions regarding the work related problems and for improving the
efficiency activities. These suggestions are forwarded to the management and decisions
will be taken. It is a source of motivation to workers.

4.3.16. Roles and Responsibilities of Employees:

1. In the view of globalization and opening up of the economy and the consequent
competition the quality of product has to be maintained at a very
High level and the workmen have to strive for their best to maintain high quality
2. For the survival in the competitive market, Rubfila shall maintain very high
quality of the products acceptable to the international markets.
3. In order to improve the productivity, job is merged wherever is possible to meet
the requirement and restructuring of manpower will be carried out wherever and
whenever possible and induction of additional man power will be avoided.

27
 4. Workmen are rotated from one job to another and transferred from one department
to another at the discretion of the departments.
5. The productivity is enhanced continuously for the profitability and the consequent
prosperity of the company
6. Strict discipline is maintained in the workplace and within the premise of the
company. They adhere to the factory timing strictly. Workmen will mark them in
and out in the movement register before and after going for lunch break during
shift hours. The breakfast for the employees in A shift will be from 8.00 to
8.30am, lunch for employees, in B shift will be served after 2.00 pm. The general
shift timing for employees working in the plant will be from 9.00am to 5,00pm for
6 days of the week with Sunday being rest day.
7. The workmen keep clean their area of work. The mobile phones, matchboxes
are strictly prohibited inside the factory. Those who use face serious disciplinary
action.
8. Absence without leave will be treated as break in t in service. Management has the
sole discretion to plan production, products, process diversification, quality,
installation, rearrangement and removal ofand allocation for expansion and
diversification.
9.
4.3.17. Stoppage and Shutdown of Work:
The management may at any time due to the following or similar events stop any or all
sections or departments of the company for any period subject to the provisions of the
Industrial Disputes Act 1947.
1. Fire
2. Breakdown of machinery
3. Stoppage or shortage of power supply or water supply
4. Scarcity of raw materials or process materials
5. Accumulation of marketable and finished products
6. Epidemics or civil commotion
7. Any other cause beyond their control preventing effective running of the factory

4.3.18. Punishment for Misconduct:

The following punishments may be awarded by the manager or any person duly
authorized by him for good and adequate reasons

28
1. Censure or reprimand: A censure/ reprimand/ warning is an admonition given to an
employee by an officer of the company.
2. Fine which may be imposed subject to the provisions of the payment of wages act and
rules
3. Suspensions as a punishment for a period of one month
4. Postponement of annual increment for three months or less.
5. Postponement of annual increment for more than three months but not
More than one year
6. Stoppage of accrual of the benefit of annual increment for one year but not
more than three years with or without cumulative effect
7. Reduction of pay in grade not exceeding three increments in the existing
Pay scale
8. Reversion/demotion to a lower grade or post or pay scale or to a lower stage in the
same pay scale either permanently or for a specific period.
9. Dismissal

4.3.19. Procedure for Punishment:

1. Charge sheet and explanation: A workmen charged with having committed
misconduct shall be served with a written memo setting out briefly the nature of
the misconduct, the facts of the charge and circumstances alleged. The charge
memo shall specify the period within which the workmen shall give a written
explanation. Such period shall not ordinarily be less than 3 days. The workmen
shall be bound to receive the charge memo'
2. Where the workmen refused to receive the charge memo or where it cannot be
served him personally for any reason' the management or authorized maybe as
deems expedient send the charge memo by registered post in the last known
address of the workmen and it will be considered as if the charge memo is served.

3. The workmen shall, except for the reason stated in writing give his explanation in
writing within the time specified in the charge memo. Granting
Extension of time on request by the workmen for filling the written explanation, shall
be at the discretion of the management or authorized officer.

29
 4.3.20. Suspension:
When proceedings against a workmen form is conduct is contemplated or pending or
where criminal proceedings against a workmen is under investigation or trial and the
management or authorized officer is satisfied that it is necessary or desirable to place the
workmen under suspension order by writing suspend him from such date as may be
specified in the order, if no date is specified in the order the suspension will be effective
from the time of communication of order to the workmen. Charge memo should be given
to the workmen within a week from the date of suspension if the order does not set out the
reason for suspension.

Subsistence allowance during period of suspension

A workmen under suspension will not be entitled to wages during the period of
suspension, but will be eligible for subsistence allowance under Kerala Payment.
Subsistence Allowance Act 1973

I. When a workmen submits the explanation and if the workmen explanation is found
to be satisfactory then the period of suspension will be withdrawn and treated by
period of duty and workmen shall be entitled to wages for the period of such
suspension less subsistence allowance paid if any

II. If no reply in respect of the charge memo within the stipulated period within the
extended time where such extension is been granted the management /authorized
officer may proceed on the basis that the workmen has no explanation to offer and
take further necessary steps as is deemed Proper.

4.3.21. Enquiry:
1. Where a reply or explanation is not received or a reply or explanation given by the
employee is not found satisfactory and it is considered necessary to take further
proceeding under the standing orders and is likely to result in punishment, the
management or authorized officer may order an enquiry into a charge to be held
by any officer of the company or any person as may be also be extended.
2. The workmen shal1 be permitted to produce at substantiate t is explanation or
disapprove the charges against him. The enquiry officer shall on explanation of
witnesses. The workmen is given opportunities to pressure any documents relied

30
 upon in support of the charge except where in the opinion of the management such
document is of a confidential nature. Only such portions of a confidential
document relevant to the charge need be allowed to be pursued by the workmen,
or he may be merely informed of the contents. The workmen will also be
permitted to file or present exhibits, if any in support of his defence.
3. If the delinquent workmen fails to attend the enquiry without reasonable causes
cause or in opinion of the enquiry officer attempts to prolong the enquiry
advancing-frivolous or insufficient grounds, the enquiry officer may after notice
to workmen proceed with the enquiry officer may after notice to workmen
proceed with the enquiry in his absence.
4. If the workmen charged with misconduct desires enquiry officer, he can at his
discretion permit the assistance of an employee/workmen of the company who
may be willing to assist the workmen charged with misconduct.
5. The enquiry officer shall make made and evidence laid before a brief and faithful
records of statements made and evidence laid before him both in support of and
against the charges.
6. After examination of the records of enquiry the charge against the workmen is
found unsustainable or disproved any suspension unjustifiable and the period of
suspension will be treated as workmen on duty and wages will be entitled and the
subsistence allowance if paid will be deducted.
7. If on the conclusions of the enquiry or as the case may be, of the criminal
proceedings the workmen has been found guilty of the charges framed against him
and it is considered that any of the punishment as provided in the standing orders
would meet the ends of justice the manager shall pass an order accordingly.
8. If any misconduct on the part of the workmen is considered proved and
punishment is awarded the period of his suspension if any will be treated as per
the orders of the management/ authorized officer.

4.3.22. Appeals:
A workmen will appeal against any order passed by an officer inflicting punishment on
him to the management. The management shall have the power to set aside vary or
confirm any such order as also to order re-examination of the matter in such manner as it
may deem it. Appeal shall be submitted through proper channel within 21 days of the
order appealed against. The appeal should be made by the aggrieved workman himself.

31
4.3.23. Promotions:
Promotions are entirely at the discretion of the management. The basis for promotion
shall be suitability for the higher post, efficiency, qualifications, skill, conduct, service
and seniority.

4.3.24. Code of Conduct And Secrecy:

1. No workmen shall during the tenure of his service except with the written
permission of the management apply for or enter the service or employment of
any other person or himself carry on any other business for gain or engage himself
in any activity which is in the opinion of the management is likely to interfere
with the efficient discharge of his duties.
2. Every workmen shall devote himself exclusively to the duties assigned to him
from time to time and shall personally attend thereto at all times during the duty
hours
3. Every workmen shall observe strict discipline as per the specific rules and
regulations laid by the company which should be strictly adhered to during the
complete manufacturing procedures.
4. Every workmen shall observe strict secrecy in respect of company matters and
shall divulge or communicate to the public, any of the matters which come to his
knowledge in the discharge of his duties except when required to do so by the
management or court of law
5. No workmen shall carry with him outside the factory premises any papers, books,
drawings, photographs, instruments, or parts, apparatus, document or any other
property of the company except with the written permission of the management.
6. No workmen shall be permitted to take for his personal use notes, drawings or
sketches or copy of the manufacturing records and other valuable documents
relating to the company’s work, process, or copies of official papers.

4.3.25. Essential Services and Confidential Categories:

The following personnel shall form the essential services and they shall be in confidential
category. They shall be on duty at all times of emergency, including occurrence of fire,
catastrophe, epidemic, civil commotion, strike, lock out, lay off, rioting etc… for the
permanent good of the factory

32
 1. Sanitary service Personnel
2. Security
3. Electrical/mechanical maintenance personnel
4. Timekeeper, cashier and supervisory staff
5. Housekeeping personnel

4.3.26. Certificate of Service:

A workmen leaving the company on his own accord shall be entitled to receive a service
certificate from the company. A workmen whose services are terminated by the
management is also eligible for this certificate on becoming termination final.

4.3.27. Retirement from Service:

Every workmen shall retire on attainment age of 58 years for determining the
validity of the age of the workmen the date of birth declared/ authenticated at the time of
joining the services of the company will be the only basis.

4.3.28. Return of Cards Keys:

Before leaving the services of the company the workman shal1 return to the
company any locker keys, identity cards, uniforms, and other articles which may have been
issued to him by the company for his during the period of his employment or in default of
this' the company may recover the replacement cost of the articles by deduction in the
workmen's wages or any other Payments due to him.

4.3.29. Address:
Every workmen shall furnish to the manager the address to which notices or letters
affecting him notice or letters sent by post or otherwise to such address given by the
workmen shall deemed to have duly been served and received by the workman concerned.
In the absence of correct/ proper address a letter is intended for the workman shall be passed
on the notice board and the letter so placed on the board shall be deemed as notice served to
the workmen.

4.3.30. Complaints:
All the complaints arising out of the employment including those relating to alleged
unfair treatment or wrongful extraction on the part of the department head or any other

33
 officer of the company shall be submitted to the manger or any person specified on behalf.
The manager or any such officer will investigate such complaints. The workmen who has
made such complaints shall be informed by the manager or by any such officer of there
result of the investigation within 10 days of receipt of the complaint and its result shall be
recorded. If no reply is received from the manager or if the reply received is unsatisfactory
the workman may prefer a complaint to the managing director after the expiry of 26 days of
the date of his complaint.

4.3.31. Responsibility of Manager:

The manager of the company shall have the right and responsibility of implementing
the various aspects of the standing orders of the company and also for the faithful and
proper observance of the same.

4.3.32. Industrial engineering Department

The main objective of this section is to make effective utilization of the manpower
resources and restructuring it for the benefit of the organization. The main functions are;
1. Maintenance scheduling
2. Work study
3. Method Study
4. Time Study
5. Work environment study
6. Custodian of manpower inventory
7. Employee Problem analysis
8. Manpower Planning that composes of manpower audit and forecast future
requirements
Among them RIL Industrial engineering department conduct the work study to calculate
the incentive paid to employee according to the statistics of last year 82%F(IL employees are
eligible to receive incentive over and above their salary

4.3.33. E-Business
E-business is the application of information and communication technologies (ICT) in
support of all the activities of business. Commerce constitutes the exchange of products and
services between businesses, groups and individuals and can be seen as one of the essential
activities of any business. Electronic commerce focuses on the use of ICT to enable the

34
external activities and relationships of the business with individuals, groups and other
businesses. The term e-business was coined by IBM's marketing and internet team since
1996.

When organizations go online, they have to decide which e-business models best suit
their goals. A business model is defined as the organization of product, service and
information flows, and the source of revenues and benefits for suppliers and customers. The
concept of e-business model is the same but used in the online Presence.

E-business is a monolithic term encompassing the various business Processes that

aim to integrate the vendors or traders with the consumers and suppliers using the Internet.
The entire process of setting up a website, helping the prospective customers navigate
through the website, showing them the available products, offering discounts and vouchers
and doing everything possible to woo the prospective clients and converting them into
customers, comes under the purview of e-business. E-commerce, on the other hand' is a
subset of e-business and refers to online transactions that can be accounted for in monetary
terms, For instance, accepting credit card payment for products sold to consumers or making
payments for shopping online are examples of e-commerce. In other words, e-commerce
refers to the last stage of e-business, which involves collecting payments for the goods sold
by the business firm.
Advantages
1. Worldwide Presence
2. Cost-effective Marketing and Promotions
3. Developing a Competitive Strategy
4. Better Customer Service
5. Curtailing of Transaction Cost
6. Overhead Costs Are Reduced

Disadvantages
1. Sector Limitations
2. Costly E-business Solutions for Optimization
3. Question of Safety
4. Data Security
5. Site Integrity
6. System Up gradation

35
 7. Momentary Intangibility

E-business does have its set of pros and cons. However, eventually, every business
partially or completely has to change its modus operandi, and adopt e-business practices in
order to ensure survival and success,

In RIL the E-business functioning as follows

1. Access is through password to employees
2. LP based access control
3. Comparatively secured
4. Order received through regional offices or mail or telephone or letters
5. Approved orders shall be forwarded to production department
6. After making material and communicated to quality control for clearance
7. Q.C department clears the product
8. Marketing department arranges invoice and send to dispatch section. Features of RIL
E-Business System
1. The online Payment system
2. Winds online Palakkad
3. ISP is BSNL broadband
4. Payment to ISP is 40000 Rs
5. Billing system is monthly
6. Powerful support of ERP.

36
4.4.Marketing Department:

RIL has a well-established marketing department with an efficient sales force work
under the marketing manager.

Marketing
Executive

Sales Executive

Marketing
Executive

Fig. No. 4.4: Structure of Marketing Department

4.4.1.Environment Analysis:
Marketing Manager conducts periodical analysis of business environment on the
following areas;
1. Demand and supply
2. Competition
3. Technological Change

37
4.4.2.Domestic Market:
RIL now focused more on domestic market and it currently holds more than 50%
market share. RIL is the undisputed market leader in India in Rubber threads. The Indian
customers prefer RIL’s products over others due to quality and other service aspects, Also
RIL is the only company producing Silicon coated Rubber Threads in India. Domestic market
is growing close to two digit revels due to the shift in procurement by the global brands to
India. Rubfila continued to maintain the leadership market, Rubfila's products command a
good premium in the market for its good quality and brand image. Rubfila has the advantage
of meeting the delivery commitments with very short lead time to its domestic Customers.

4.4.3.Market Offices:
RIL has four market offices in India they are
1. Tiripur
2. Mumbai
3. Calcuna
4. Delhi

4.4.4.Customers:
The main customers of RIL are follows these are not only domestic customers but
also include customers all over the world since RIL is an international player in Rubber
industry of course it have the following international as well as domestic customers,
communication with customers are mainly by telephone and E-Mails.
1. J.V. TaPes
2. Agarval, Mumbai
3. Sreehariha Industries, Culcutta
4. Tulip Elastics, Delhi

4.4.5.Competitors:
In this competitive market RIL cannot survive without complete to its customers the
major competitors of RIL in domestic market are as follows
1. Dharmapal Satyapal Group
2. Radhu, Dehradun
3. Sangi Threads, Hyderabad

38
 4. Filtex
5. SRL
6.

4.4.6.Market share:
Sl.No Name of Company % of market Share
1 RIL 50%
2 Radhu 20%
3 D S Group 10%
4 Filtex 17%
5 Import 9%

4.4.7.Export Market:
The export market of company is now less than l0%, of the total production of the
company and has an international presence with exports to USA, countries in Europe and
Asia. RIL has been able to carve a unique position in the international Market owing to its
ability to produce a wide variety of quality products. RIL's Quality is acknowledged as one of
the best in the world. Export mainly of coloured rubber threads for bungee, fishing equipment
and toys. Global Rubber Thread market is about 1.20 lack tonnes. Major suppliers are located
in. Malaysia, Thailand, India and Indonesia. The growth rate is expected to increase further as
the concept of eco-friendly products is picking up in third world countries' too. The prices of
major raw material rubber are still undergoing wide fluctuations during the year under
review. However, the company has been able to pass on this proportionately to the finished
product.

4.4.7.International Competitors:
1. Thaitex, Thailand
2. Rubber Thread Industries, Malaysia.

39
4.4.8.Countries which RIL has a clear market presence / Exported countries
1. Nepal
2. Hong Kong
3. China
4. Bangladesh
5. Iran
6. UAE
7. Rumania
8. Egypt
9. USA
10. Kenya
11. Mexico
12. South Africa
13. Venezuela
14. Algeria
15. Peru
16. Spain
17. UK
18. Chile
19. Brazil
20. Australia
Apparel Grade is the most demanded product in the domestic Market. Mostly RIL
produces Rubber Threads with Talcum Coating. Silicon coating are providing as per
the customer preferences. Also RIL produces rubber threads commonly in white and
black colour.

4.4.9.Pricing Strategy:
Cost plus profit is the pricing method adopted by RIL. The price range is
200-300 per Kg to RIL products However; the company cannot maintain a stable
price for a long period as the market price for the latex- Major raw materials,
Fluctuates.

40
4.4.10.Packaging and Labelling
Cotton boxes are used for the packaging purpose and in the label following are
the contents
1. Count
2. Colour
3. Ends
4. Net weights
5. Gross weights
6. Pallet
7. Ribbon
8. Carton Number

4.4.11.Promotion:
As RIL strictly maintain quality standards their products, good reputation
itself is the cost effective way of promoting company's products. RIL website
provides details information about the company and its products. The normal sales
procedure is that the customers contact to the regional office and supply products
directly to them. Also sales executives at regional offices promote the products in
their regional area.

4.4.12.Transportation:
RIL products are transported though road ways for supply products in
domestic market. In case of urgency of 2-3 days products transported through
railway and in very rare oases advice. For exporting products is mostly through ship
and in rare cases airways.

4.4.13.Handling and storage:

When the products reaches the customers, RILs team of sales and technical
service staff are there to provide advice on the care of our threads to make the most
their durable qualities, While handling and storing rubber threats, it is important to
note some precautions so as to avoid wastages.

41
4.4.14.Expansion Plans of RIL:
1. 6500 tons to 10000 tons - third production line already completed in the first
quarter of current financial year.
2. 10000 tons to 13000 tons - fourth production line is expected to complete in
4th quarter of current financial year.
3. 13000 tons to 25000 tons - 12 acres of land acquired already for the new
manufacturing set up at Coimbatore (latex related products).

4.4.15Function
1. Determination of marketing goals and formulation of marketing strategy.
2. Building up of brand value and corporate image.
3. Planning and supplementing promotional programmes.
4. Maintaining both customer and dealer satisfaction giving adequate
importance to improve the level of satisfaction continuously.
5. Planning and supplementing the proposals for fixing and managing changes
in selling prices in the ever changing market.
6. Selection of appropriate channels for distribution.

42
4.5.Production Department:

Production
Manager

Supervisor

Workers

Fig. No. 4.5: Structure of Production Department

4.5.1. Functions:
1. Planning daily production according to annual target
2. Submitting Plan to Government and getting approval
3. Monitoring actual production & checking any deviation
4. Making revision plans according to actual production
5. Maintenance of Plants.

4.5.2.Production Planning:
1. Material Planning
2. Production scheduling

4.5.3.Facility Location And Plant Layout:

Rubfila International Ltd is located at the New Industrial Development Area,
Kanjikode in Palakkad district of Kerala. As our state is the heart land of natural
rubber in India, the company can easily ensure the quality of latex used as raw

43
material. The company adopts a very systematic method for plant layout which
eliminate all the unnecessary human and material movement within the plant.

4.5.4.Safety Gadgets Used:

1. Helmets
2. Spectacles
3. Safety shoes
4. Gloves

4.5.7.Material Handling Equipment :

1. Pressure Pumps
2. Vacuum tubes
3. Forklift
4. Pallet trucks
5. Electric stackers

4.5.8.Ancillary Equipment for Manufacturing:

1. Grinding mills
2. Dispersion tanks
3. Activation/maturation tanks
4. Homogeniser
5. Air compressor
6. Vacuum pump
7. Water treatment Plant
8. Chillers
9. Acid purification Plant
10. Thermal fluid heaters
11. Hot water boilers
12. Generator sets

44
4.5.9.Manufacturing Process:
The process is manufacture rubber threads is briefly narrated below. The
difference between the manufacture of TCT(Talcum coated threads) and SCR
threads(Silicon coated rubber threads) is in application of the coating of talc and
silicon and in drying and curing process. The process for the manufacture of rubber
thread is a continuous one and any power failure can lead to huge losses. Hence stand
by generator sets have been installed to take over the plant in the event of power
failure from the state power grid' RIL has 200% stand by generator capacity and also
has a UPS to take over the critical machines during power failures.

1. Latex section:
Centrifuged latex is initially filtered before filling the same to the latex storage
tanks. During the periods of storage' the latex is continuously stirred to prevent
coagulation. Periodic samples are been drawn from the storage tanks to
analyse its properties before compounding. The required quantity of the latex
as per the formulation is drawn to the latex-weighing tank for compound
preparation.

2. Dispersion:
Raw materials chemicals, which are accepted after quality check, are
ground/filtered and stored in specialized jacketed tanks with provision for
cooling. Emulsions are prepared specifically designed heating tanks and stored
in the jacketed tanks under controlled conditions. These dispersions are
periodically checked for the specified chemical properties' Appropriate
amount of dispersion are mixed together along with latex through a latex
weighing tank depending upon the formulation to produce inactive compound
and stored in inactive compound tank.

3. Compounding:
The compounding process commences with the mixing of latex with the
chemical dispersions in the tank. These dispersions are transferred with the
help of pumps and are mixed constantly with stirrer. This in activated

45
 compound is transferred to the activation tank. Chemicals are added to the
compound under controlled conditions.

4. Extrusion:
The matured compound is transferred to the top container. Compound feeding
system, which will be fed to the extrusion header. The header will be fitted
with the calibrated glass capillary tubes through which the compound is
extruded for producing HRLRT. The extruded threads are drawn through a
bath, which contains the acetic acid. The threads then leached in hot water at
different temperatures through five sets of water baths. The threads are then
passed through a drying oven. Hot air is circulated inside the drying oven at
different temperatures.

5. Talcum/Silicon Application:
For the production of rubber threads, the threads are taken through a talcum
application devise wherein threads are coated with talc. The excess talc is
removed through a shaker machine and the fine talcum dust particles are
collected in the dust collector system. In the case of the silicon threads the
silicon emulsion is applied before drying process and the threads after the
curing are passed through a section of LPG burners to burn off the excess of
the silicon content.

6. Ribbon Forming:
The individual threads are passed through the rollers for the collection for
making single threads and fed in between two mirror finished chrome plated
rollers for ribbon forming.

7. Curing :
The ribbons formed are fed through two stage of curing as a specified speed
and temperature settings. The temperature settings are fixed based on the
physical properties of the final product. The curing is achieved by hot air
conveyed through specially designed ducts. The rubber threads are fed through
curing for vulcanization.

46
8. Cooling Drums:
The vulcanized ribbons from the oven are passed through a set of cooling
drums. These are specially designed jacketed drums, which has the provision
to circulate the chilled water.
9. Festooning machine:
The festooning machine is used to pack the ribbons in the canons in an evenly
disturbed uniform manner. This machine also consists of anti static system,
which is used to remove the excess static electricity from the ribbons before
packing. The packed cartons are weighed and labelled ready for dispatch

47
4.6. Materials Management Department:

Materials management can deal with campus planning and building design for
the movement of materials, or with logistics that deal with the tangible components of
a supply chain. Specifically this covers the acquisition of spare parts and
replacements, quality control of purchasing and ordering such parts, and the standards
involved in ordering, shipping, and warehousing the said parts. In other words
Materials management consists of coordinating all the functions such as planning,
sourcing, purchasing, moving, storing and controlling materials in an optimum
manner. The main aim is to provide pre-decided service to customers at minimum
cost.

Material
Management

Supervisor

Clerk

Fig.No. 4.6: Structure of Material Handling Department

4.6.1.Objectives of materials management:

a) Main objectives:-
1. To purchase quality goods at minimum cost
2. To exercise control over materials

48
 3. To maintain the continuity of production & sales by regular supply of
materials
4. To maintain standards of quality
5. To establish good relationships with the suppliers
6. To maintain the efficiency of materials department
b) Subsidiary objectives:-
1. To participate in make or buy decision process
2. To recommend use of substitute materials
3. To be helpful in new product development
4. To be helpful in standardization of products manufactured

4.6.2.Scope of Material Management:

1. Purchasing of materials
1. Materials should be of right quality
2. Purchasing in right quantity
3. Purchasing at a proper time
4. Purchasing at a right price
5. Purchase at a right place
6. Purchase from the light source of supply

Materials management means planning, directing, coordinating & controlling of

activities related to acquisition, storage, & maintenance of materials needed for the
purpose or production with an objective of minimizing the cost & increasing the
profitability.

2. Storage (Store keeping)

3. Weight and Quality are inspected

4. Classified as R.M, Semi-finished, Finished goods, Spare parts

For maintaining the continuity of production & sale, minimizing the stock out cost
controlling the investment of working capital in stock inventory control is essential
for scientific storing

5. Bin Cards

49
 6. Inventory Control
7. Clearing and Forwarding
8. Material Handling

After arrival at fact sent for checking the weight, Inspecting the quality, Storerooms,
Issued to factory when needed for production, shifted from one process to another
during production process, Case of assembly, finished goods. Vendor Selection
Choosing the light supplier involves much more than scanning a series of pricelists.
Choice will depend on a wide range of factors such as value for money, quality,
reliability and service, weigh up the importance of these different factors will be
based on organisations priorities and strategy. A strategic approach to choosing
suppliers can also help the company to understand how the potential customers weigh
up their purchasing decisions. The vendor decision in RIL is purely based on two
facts

1. On the basis of potential to supply

2. Check whether he is a reputed vendor
While choosing a supplier RIL look into detail about the following facts
1. Reliability
2. Quality
3. Value for money
4. Strong service and clear communication
5. Financial Security
6. A partnership approach Identification of Potential Vendor may be through
7. Recommendations
8. Trade associations
9. Business advisors
The following are the main type of vendors for RIL Latex suppliers
1. centrifugal, latex Chemical suppliers
2. Acetic acid
3. Zinc oxide
4. Vendor Rating

50
Rating of vendor is a complex task according to this rating the organization will
priorities them in the supplier choosing process. The following are the methods
adopted by RIL to rate a vendor, vendor rating normally takes place in each 6 Months

The process is on 5 Point scale:

1. Delivery
2. Quality
3. Response
4. Competitiveness
5. Cooperativeness and readiness

4.6.3.Stores:
A store is a commercial building for storage of goods. Stores are used by
manufacturers, importers, exporters, wholesalers transport businesses customs etc.
They are usually large plain buildings in industrial areas of cities and towns and
villages. They usually have loading docks to load and unload goods from trucks.
sometimes Stores are designed for the loading and unloading of goods directly from
railways, airports, or seaports. They often have cranes and forklifts for moving goods,
which are usually placed on ISO standard pallets loaded into pallet racks. Stored
goods can include any raw materials, packing materials, spare parts components,
finished goods associated with agriculture, manufacturing and production.
Stores are under the control of stores manager. The latex and acids are stored
in separate storage tanks. Cartons are stored in separate block. Spare parts are stored
apart from the raw materials and process section. Items are classified on the basis of
attributes. There are mainly three stores under stores function. They are raw materials,
packing materials, finished goods. The materials in stores are forwarded to the
respective department based on the intend form of the required department

Different types of Stores on the basis of storage nature are

1. Closed stores
Closed systems are utilized when close control and accounting for inventories
are desirable. In such cases, storage area are kept locked and entry is limited to
stores employees, or to others only on an authorized basis. Goods enter inventory

51
 through a formal receiving process and leave through an authorized requisition or
bill of materials. Closed systems typically include industrial or business stores
operations, and involve repair pans, consumables' tools, and materials or
components for assembly where ongoing control and accuracy is essential.

Thereareinstanceswherethecostofcloselycontrollinginventoriesoutweighs
expected losses in an uncontrolled environment. In such cases, inventory storage
areas may be left open or kept close to point of use for efficient user access. Such
inventories are available for use as needed, with emphasis on expediting
production, or operations rather than on security.

2. Random access
In random access systems, goods are stored without regard for commodity
groupings. Instead, goods are stored in the next or nearest available space of
suitable size. However it is good planning to select from available storage spaces
with consideration for the anticipated frequency of issue. Locating items in
random access storage usually requires a computerized system. Random access
systems tend to be used in conjunction with a closed stores system.

3. Automated warehouse
A large variety of automatic storage and retrieval systems (ASRS)are being
used today. ASRS systems have the capability of bringing goods from storage or
placing goods into storage upon computer entry of the item identification and/or
storage location. Such systems may range in size from small rooms to whole
warehouses, and may handle items ranging from small parts in tote pans to large
materials on Pallets.

Functions of Store Manager:

As he belongs to materials department his office is in the plant itself

1. Checks, which are the raw materials wanted.
2. Maintain the raw materials.
3. Maintains the transactions that are processed in the specified department
4. He manages the stores assistant manager
5. Maintains the cash payments and cash receipts

52
Functions of Stores Assistant Manager:
1. Receives raw materials
2. Issue of raw materials
3. Maintaining stock records
4. Arranging raw materials for inspection
5. After the testing process in the lab, the raw materials are accepted or rejected
6. If the raw materials are rejected he has to prepare a rejection memo to the party
7. If the raw materials are damaged then he has to arrange for insurance coverage

Stores Accounting:
Storesaccountingareessentialindeterminingmaterialcostoftheproduct.Thedifferent
costs incurred are price, freight, taxes etc.
1. Under stores function materials are dispatched on the basis of First In First
out (FIFO) Method
2. The records for maintaining stocks are firstly they prepare a Goods Receipt
Note(GRN)
3. Materials issue voucher for issuing of raw materials to production unit.
4. BINCARDisanotherdocumentusedformaintainmainchemicalslikesulphuretc
5. To maintain the reorder level daily stock statement is prepared and send to
purchase department then after getting this daily stock statement they will
place orders to the appropriate vendors when the stock level reaches
minimum.
6. To know the available stock in hand month wise account is maintained and
it is tallied.

Documents Used in Stores:

1. Goods receipts note

Record of goods received at the point of receipt. This record is used to confirm
all goods have been received and often compared to a purchase order before
payment is issued.

2. Bin card

53
 A document that records the status of a good held in a stock room. A typical
retailing business with a large stock room will use a bin card to record a running
balance of stock on hand, in addition to information about stock received and
notes about problems associated with that stock item.

3. Materials issue voucher

Record of goods issued at the point of issued. This record is used to confirm all
goods have been received and often compared to a sales order before receipt
made.

4.7.Quality Assurance Department:

Quality Assurance (QA) is a way of preventing mistakes or defects in

manufactured products and avoiding problems when delivering solutions or services
to customers, QA is applied to physical products in pre-production to verify what
will be made meets specific actions and requirements and during manufacturing
production runs by validating lot samples meet specified quality controls. QA is also
applied to software to verify that features and functionality meet business objectives,
and that code is relatively bug free prior to shipping or releasing new software
products and versions.
Quality Assurance refers to administrative and procedural activities
implemented in a quality system so that requirements and goals for a product senile
or activity will be fulfilled. It is the systematic measurement, comparison with a
standard, monitoring of processes and an associated feedback loop that confers error
prevention. This can be contrasted with quality control, which is focused on Process
output.
At RIL the buzzwords are quality and customer delight. It ensures consistent
quality products to the customers by a three pronged quality approach control of
inputs, control of process and control of outputs. RIL has a chemical lab installed
with advanced testing equipment’s and the lab personnel work round the clock to
monitor and control the quality of inputs to the process. The process parameters are
monitored frequently to ensure that the process is within the control. The quality of
outputs is measured and monitored by a physical lab again with a committed crew

54
 that works round the clock. They ensure that the quality of the output is as per global
standards.

Quality
Assurance
Department

Quality
Assurance
Manager

Executive

Fig. No. 4.6: Structure of Quality Assurance Department

4.7.1.Equipments Used:

1. Tensometer
A Tensiometer as it applies to physics is an instrument used to measure the
surface tension of liquids or surfaces. Tensiometers are used in research and
development laboratories to determine the surface tension of liquids like coatings,
lacquers or adhesives. A further application field of tensiometers is the
monitoring of industrial production processes like parts cleaning or electroplating
2. Steel ruler
A ruler, sometimes called a rule or line gauge, is an instrument used
ingeometry, technical drawing, printing as well as engineering and building to
measure distances or to rule straight lines. The ruler is a straight edge which may
also contain calibrated lines to measure distances

55
3. Aceton chiller
Acetone is the organic compound with the formula (CH3)2CO. It is a colour
less, mobile, flammable liquid, and is the simplest ketone, Acetone is a good
solvent for many plastics and some synthetic fibers. It is used for thinning
polyester resin, cleaning tools used with it' and dissolving two part epoxies and
superglue before they harden. It is used as one of the volatile components of
some paints and varnishes. As a heavy duty degreaser, it is useful in the
preparation of metal prior to painting. It is also useful for high reliability
soldering applications to remove rosin flux after soldering is complete: this helps
to prevent the Rusty bolt effect. Chilled Acetone can be used to ensure their
physical quality.
4. Micro gauge.
In engineering a gauge or gage is a device used to make measurements or in order
to display certain information, like time. A wide variety of tools exist which serve
such functions ranging from simple pieces of material against which sizes can be
measured to complex pieces of machinery. In RIL gauge issued to measure the
count of raw materials.

4.7.2.Inspection:

An inspection is, most generally, an organized examination or formal evaluation

exercise. In engineering activities inspection involves the measurements, tests and
gauges applied to certain characteristics in regard to an object or activity. The results
are usually compared to specified requirements and it standards for determining
whether the item or activity is in line with these targets. Inspections are usually non-
destructive.

Inspection and quality control are the most important tools in today’s
corporate world. In international trade several destination countries require pre-
shipment inspection. The importer instructs the shipper which inspection company
should be used. The inspector makes pictures and a report to certify that the goods
that are being shipped and produced are in accordance with the accompanying
documents.

56
Positive impact
1. Reduces end-line defects
2. Saves time and efforts of final inspection
3. Helps to fix the problems at the outset' and prevents common mistakes being
made repeatedly
4. Helps to ensure quality of the products of a production line

Type of inspection
1. Pre-production inspection
Pre-production inspection or Inward inspection of raw materials is done in the
chemical lab. Only after the inspection the raw materials are sending to the
production unit.

2. During production inspection

During production inspection or in process inspection is the production
Process

3. Final random inspection

Final random inspection or finished product inspection is done through online
inspection and if any problem is identified therein.

4.7.3.Quality Control
Quality control, or QC for short, is a process by which entities review the
quality of all factors involved in production. This approach places an emphasis on
three aspects

1. Elements such as controls, job management, defined and well managed

Processes, performance and integrity criteria, and identification of records

2. Competence, such as knowledge, skills, experience, and qualifications

3. Soft elements, such as personnel, integrity, confidence, organizational culture,

motivation, team spirit, and quality relationships.

Controls include product inspection, where every product is examined

visually, and often using a stereo microscope for fine detail before the product is sold

57
into the external market. Inspectors will be provided with lists and descriptions of
unacceptable product defects such as cracks or surface blemishes for example. The
quality of the outputs is at risk if any of these three aspects is deficient in any way.

Techniques used in RIL for Quality control purposes.

1. Acceptance Sampling
Acceptance sampling uses statistical sampling to determine whether to accept or
reject a production lot of material. It has been a common quality control technique
used in industry. It is usually done as products leave the factory, or in some cases
even within the factory. Most often a producer supplies a consumer a number of
items and a decision to accept or reject the lot is made by determining the number
of defective items in a sample from the lot. The lot is accepted if the number of
defects falls below where the acceptance number or otherwise the lot is rejected.

2. Control charts
Control charts also known as Shewhart charts or process-behaviour charts, in
statistical process control are tools used to determine if a manufacturing or
business process is in a state of statistical control.

4.7.4.Total Quality Management:

Total quality management (TQM) consists of organization wide efforts to
install and make permanent a climate in which an organization continuously improves
its ability to deliver high-quality products and services to customers. While there, is
no widely agreed-upon approach, TQM efforts typically draw heavily on the
previously developed tools and techniques of quality control. RIL have following
quality certifications.

1. ISO 9001:2008
2. IS0 9001:2010
3. EMS 14001

Techniques used for quality management

1. Daily report of defects
2. Quality checking registers
3. Auditing

58
Tests for quality checking
1. Tensile test
2. T-50 test
3. Schwartz test

Table 4.3.characteristics of Rubfila Rubber Threads

Green
Tensile Elongationat Schwartz
modulus Heat
Strength break Value(gems/s
Variety count 300% resistance
(gm/s % q.mm)
(gm/r
g,mm)
q.mm)
20-86 >10
>30 >650
High 90. 2.5-4 2.5-4 0 50
>30 >700
Elongation on 105 >10
0

Furniture
>150
grade 20-28 3.5-5 >30 >600 50

Food 2,75-3.50
20-32 >30 >700 >135 <10
grade

Fishing 50
11-19 2.0-2:50 >20 >650 >100
grade

Diaper >100
38-50 2.5-3.5 >30 >700 50
grade

Super >85
34-40 3.0-3.5 >30 >675 >135
extruded

+-10%
tolerance 5% +-10 +-15% +-10%

59
 4.7.5.Industrial Safety:
An industrial safety system is a counter measure crucial in any hazardous
plants such as oil and gas plants and nuclear plants. They are used to protect human,
plant, and environment in case the process goes beyond the control margins. As the
name suggests, these systems are not intended for controlling the process itself but
rather protection. Process control is performed by means of process control systems
(PCS) and is interlocked by the safety systems so that immediate actions are taken
should the process control systems fail.

Process control and safety systems are usually merged under one system'
called Integrated Control and Safety System (ICSS). Industrial safety systems
typically use dedicated systems that are SIL 2 certified at minimum; whereas control
system scan start with SIL 1. SIL applies to both hardware and software requirements
such as cards, processors redundancy and voting functions.

Safety gadgets
Safety gadgets are those devises which are used to protect the employees from
hazards the following gadgets are used by RIL.

1. Safety shoes
Safety shoes are footwear designed specifically to protect the feet They typically
are worn in environment where injury to the feet is more likely, such as a
construction site or in a factory. They often feature thick soles and steel toes' and
they tend to be heavier than casual footwear.

2. Gloves
Personal protective equipment worn over the hands. When handling materials, the
operator should wear safety gloves made from rubber or another material that is
impervious to materials.

3. Mask
Protective masks are pieces of kit or equipment worn on the head and face to
afford protection to the wearer, and today usually have these functions are
providing a supply of air or filtering the outside air and Protecting the face against
flying objects or dangerous environments, while allowing vision.

60
4. Helmet
A helmet is a form of protective gear worn to protect the head from injuries.

5. Goggles
Goggles or safety glasses are forms of protective eyewear that usually enclose or
protect the area surrounding the eye in order to prevent particulates, water or
chemicals from striking the eyes, They are used in chemistry laboratories and in
wood working. They are often used in snow sports as well, and in swimming.
Goggles are often worn when using power tools such as drills or chainsaws to
prevent flying particles from damaging the eyes. Many types of goggles are
available as prescription goggles for those with vision problems.

Benefits
In fact company is legally responsible for the safety of company and
employees, and any other person that may be affected by organizations work
activities. Accidents and ill-health cost businesses money, in lost time, lost skills,
insurance premium hikes, legal proceedings, etc. the benefits of effective health and
safety management to business are very significant. There is clear evidence that
effective health and safety management contributes directly to overall business
success. This is true across all industry sectors and amongst businesses of all shapes
and sizes. Apart from the obvious legal and moral duties organisation have as an
employer, consider the possible consequences of a serious workplace accident in the
organisation premises. Think about managing without a key employee while he is
recuperating following an accident. Think about the damage to company’s brand and
business reputation. Think about increased insurance premiums or compensation
claims. A positive and proactive approach to health and safety management can
minimise the potential for financial damage to the business. The basis for the
management of health and safety in the workplace is the written safety statement. The
safety statement is organisation for protecting the safety and health of employees and
others who may be affected by companies work. Preparing a safety statement will not
in itself prevent accidents and all health at work but by making a commitment to
promoting health and safety and specifying the arrangements and the resources have
put in place, the safety statement plays a vital part in managing health and safety in
workplace.

61
Managing safety is good for business and it is good for everyone!
a) Reduce the chances of an accident in your workplace
b) Improve staff morale and motivation
c) Reduce absenteeism
d) Save money

62
 Chapter - 5

SWOT ANALYSIS.

5.1. SWOT Analysis

5.1.1.Strength:
Leader in the Domestic Market with Brand Image for quality products (50 %
market share) only manufacture manufacturing Silicone coated Rubber thread in
India
Products meeting Oeko-Tex Standard, (an acclaimed certification in textile sector).
Successful development of wide variety of premium niche products(textile threads,
threads for furniture webbing, food grade threads for food packaging. Threads for
apparel making & diapers) Short lead time for domestic customers. Strategically
located at Kerala, where abundant raw material (rubber & latex) availability and
proximity to various textile companies located at south India.

5.1.2.Weakness:
Lack of promotion strategies to enhance brand image. No effective innovation,
fluctuation in pricing, insufficient plant capacity to cater domestic demand.

5.1.3.Opportunity:
Project to diversify latex products increasing market share in India, other
expansion plans, plans to increase plant capacity. Future expansion plans to
explore international market.

5.1.4.Threat:
Cheaper imports, competition, new government policies, higher credit offered
by other MNC's

63
 Chapter – 6

CONCLUSIONS

6.1. Findings:
1. Use of best quality components is reflected in the end products. This outcome of
quality assured purchased of components.
2. The use and awareness of end products shows an increasing trend, which is due to
excellent marketing department.
3. Ownership and responsibility shown by each employee shows the excellence in
human resource.

6.2. Suggestions:
1. Continued focus must be given on meeting quality standards so as to ensure
product acceptance by the customers.
2. More focus should be given to training and motivation of employees.
3. Better promotional activities must be put forward.

6.3. Conclusions:

Rubfila International Limited (RIL) is a Public Limited Company promoted by

Rubpro sdn. Bhd., Malaysia and Kerala state Industrial Development corporation.
The company which started with manufacturing extruded Round Latex Rubber
thread later ventured into the manufacture of industrial adhesives used in various
applications like footwear/ leather goods, lamination/printing, carpet, construction
etc. The State of the Art infrastructure facility of is located at New Industrial
Development Area Kanjikode, Palakkad, Kerala. Kerala is the heartland of natural
rubber in India. Company is jointly promoted by Rubpro of Malaysia and the
Kerala State Industrial Development Corporation (KSIDC).

Rubfila international Ltd. Kanjikode, an ISO 9001:2008 certified export

recognized company with best material management practices, best pollution
control measures and environment policy is the market leader of rubber thread
industry of India. It is the best quality rubber thread producer in the country. All
has a production capacity of 6350 ton per annum. It manufactures talc coated

64
rubber threads as well as silicon coated rubber threads, where it is the only
manufacturer of silicon coated lubber threads in India. Rubber threads are used for
a number of applications such as apparels, food grade, furniture grade, bungee
jumping, diapers, toys etc. Apparels grade thread is a the most demanded product
of the company in the domestic market.

The company was in existence from 1992. The company ran into rough weathers
during the course of time and started running at heavy losses and was referred to
BIFR when the total net worth eroded. In 2005, a new group of investors led by
Bharat Patel stepped in as promoters. All the liabilities of the banks were
negotiated and settled by bringing in additional funds. A new management team
was also put in place to lead the company out of troubles. The New Promoters had
converted the loan into shares, thereby increasing their holding to 64.11 percent
from 38.87 Per cent.

During the course of the organization study, I have been able to understand the
functioning and governance of various departments and familiarize myself with
the functioning and working of an organization. This study has improved my
confidence to undertake such studies in the future by its successful completion.
The future however looks bright when the opportunities and strengths of the
organization are considered. RIL’s real strength is its experienced employees who
have tasted the different stages of its growth. Further, it tries to acquire new
technology for cutting the cost of production. Government's new policy on
subsidy may rewrite the history of RIL. However the RIL can face the difficulties
of being a Private sector in this privatisation age. Continues effort and
hardworking is the only one solution to survive this situation very well.

65
 Bibliography

Manuals:

1. Annual Report of Rubfila International Limited.

2. Departmental Presentations shown by the officials

Website:

1. http://www.moneycontrol.com/indialstockpricequi

2. http://www.rubfila.com

3. http://www.wikipedia.com

Books:

1. Company Journals
2. Arora M. N, Accounting for Management, Himalaya Publishing House
3. Philip Kotler & Armstrong Gary, Principles of Marketing(15th edition),
Pearson Prentis Hall
4. V.S.P Rao, Human Resource Management: Text and Cases, Excel Books
5. Rmaswamy V.S & Ramakumari S, Marketing Management-Global
Perspective, Indian Context, MacMillan 4th edition

66