A REPORT ON INTERNSHIP TRAINING

AT

KKP SPINNING MILLS PVT. LTD

Submitted by

NAME: G. ANUPRIYA

REG NO: 613320631004

In partial fulfillment of the requirement
for the Award of the degree of

MASTER OF BUSINESS ADMINISTRATION

DEPARTMENT OF MANAGEMENT STUDIES

VIVEKANANDHA INSTITUTE OF INFORMATION AND
MANAGEMENT STUDIES
TIRUCHENGODE.

DECEMBER 2021
 BONAFIDE CERTIFICATE

This is to certify that the Internship Training Report in partial fulfillment of the
requirements for the award of the degree of Master of Business Administration is a record of
original training undergone by Ms. G. ANUPRIYA Reg No: 613320631004 during the year
2021-22 of his/her study in the Department of Management Studies, Vivekanandha Institute of
Information and Management Studies, under my supervision and the report has not formed the
basis for the award of any Degree/ Fellowship of other similar title to any candidate of any
University .

Signature of the Guide Director

Submitted to the Examiner of Internship Training Viva Voce being held on

____________________________

Internal Examiner
 DECLARATION

I declare that the Internship Training Report, submitted in partial fulfillment of the

requirement for the award of the Degree of Master of Business Administration is a record of

the original work done by me, during my period Nov/Dec 2021 under the supervision and

guidance of Asst. Prof. Mr. T. Krishnakumar, Head of the Department of Management

Studies, Vivekanandha Institute of Information and Management Studies, Tiruchengode and it

has not formed the basis for the award of any Degree / Fellowship or similar title to any

candidate of any University.

Place: Signature of the

Candidate

Date:
 ACKNOWLEDGEMENT

I wish to express my profound gratitude to Management, for giving me the opportunity to do

the training.

I offer heartfelt thanks to our Chairman & Secretary Dr. M. Karunanithi, B.Pharm., M.S.,
Ph.D., D.Litt., who provided all facilities for carrying out this training.

I immensely thank our Director, Dr. V. Mohanasundaram, for his Valuable guidance,
encouragement in completion of this training successfully.

I immensely thank our Head of the Department, Asst. Prof. Mr. T. Krishnakumar, for his
Constant motivation in completion of this training successfully.

I take this opportunity to thank my Guide, Asst. Prof. Mr. T. Krishnakumar, for his / her
aspiring guidance and constructive criticism during the training.

I would also like to thank KKP SPINNING MILLS PVT LTD who provided me with all
facilities being required and conducive conditions for my MBA Internship.

I thank God Almighty for showering his perennial blessing on me for giving me the courage to
pursue this training successfully.
 TABLE OF CONTENTS

CHAPTER PARTICULARS PAGE.NO

INTRODUCTION 1
1.1 OBJECTIVES OF THE STUDY 2
I 1.2 SCOPE OF THE STUDY 3
1.3 LIMITATION OF THE STUDY 3
PROFILE
2.1 INDUSTRY PROFILE 4
II
2.2 COMPANY PROFILE 14
2.3 ORGANIZATIONAL CHART 21
VARIOUS FUNCTIONAL DEPARTMENT 22
3.1 PRODUCTION DEPARTMENT 23
3.2 HUMAN RESOURCE DEPARTMENT 29
III 3.3 FINANCE DEPARTMENT 40
3.4 MARKETING DEPARTMENT 44
3.5 QUALITY DEPARTMENT 46

IV AREA OF TRAINING
4.1 SWOT ANALYSIS 53
V CONCLUSION 56
 CHAPTER – I

INTRODUCTION OF THE TRAINING

In an organization study each and every department in an organization is observed and

analyzed in detail. The study gives equal importance to every organization of an
organization and projects their importance the organization in achieving its objectives.

An organization study will help in having a better idea about the function each
department in details and the duties and responsibilities of each and every personnel in a
particular department.

It also helps to identify the instructor led hand on methodological training which leads
and deals with practical situation in the form of exercises and activities the study identifies
the industry to which specific need-based training for maximum effectiveness and desired
results. It is made possible through a pre – assessment exercise of the prospective trainees
and preparing a detailed training schedule/ plan for making required alterations &additions
to their skill sets.

I will also provide better training which is continuously working on strategies,

methodologies, and modus to achieve this goal for our trainees and to create an
environment for effective performance.

With all the experience and knowledge acquired, it is hoped at the student will able to
choose appropriate work upon graduation. Industrial training also provides a systematic
introduction to the ways of industry and developing talent and attitudes, so that one can
understand how Human Resource Development works. Systematic introduction to the
ways of industry and developing talent and attitudes, so that he / she can enjoy fully, a
career in Management while recognizing his / her responsibilities as a professional of the
future.

1
1.1 OBJECTIVES OF THE STUDY

The underlying objectives were set for conducting this organization study.

✓ To study about overall management of the organization.

✓ To analyses various functions performed by the various departments in the organization.

✓ To secure practical knowledge regarding the HR aspects involved in the organization.

✓ To study the activities of the departments in the organization

✓ To familiarize with business organization to relate theory with practice.

✓ To understand how key processes are carried out in an organization.

SIGNIFICANCE OF THE STUDY

For the partial fulfilment of the Master of Business Administration from Anna University,
an internship has conducted during a month. This study helped me to gain knowledge about the
textile industry, especially the process involved in yarn production. The general objective of this
program was to gain practical knowledge on the overall functioning of the various departments
involved in KKP Spinning Mills Ltd, Namakkal. This study helped me to gain more information
about the present conditions prevailing in the textile sector and the constraints which are faced by
the mills at present in Tamil Nadu. To know the fact that the textile industry is the single most
export earner (about 30%) of gross export earnings for India and it is the second most employment
provider after agriculture.

2
1.2. SCOPE OF THE STUDY

➢ Internship can be carried out mainly with an object of gaining practical experience in
organization. These allowed to me an opportunity to interact and to visit the production
unit in KKP Spinning Mills.
➢ Thus, it helped to gain an industrial insight in the field of production and the problems,
which are faced by the Textile industry as a whole.
➢ It provides a chance to see the practical constraints faced by the managers while putting
theory into practice. It helped to gain knowledge about the real-life situation faced by
the managers in each stage of the work.
➢ It helped to know how they tactically solve any problem encountered by them. This
study enables to gather more information about the historical aspects involved in textile
industry and also to know about the present scenario which leads to declining closing
up of many textile industries in India especially Tamil Nadu.

1.3 LIMITATIONS OF THE STUDY

➢ Top management was reluctant to disclose confidential matters related to the company
➢ Due to lack of production technique knowledge, could not know more about production
side.
➢ Unable to cover some areas of the organization
➢ There was a sufficient support from the officials and staff, but the company’s tight work
schedule prevented them from giving additional information.

3
 CHAPTER 2

2.1 INDUSTRY PROFILE

The term textile is derived from the Latin word “Texere” means to weave. Textile industry
came into existence even before independence and occupied a very unique position in the world
itself due to its contribution made in the field of employment, natural economy and exporting. In
olden days, structure and functioning pattern of these industries were extremely complex that it is
mainly carried out with the help of hand spinning machines in unorganized manner. However, as
technology started to expand, its application in textile industry changed its structure and resulting
in a highly sophisticated and mechanized mill sector or industry. Small-scale power loom sector
and an organized mill sector played a major role in the growth of the mill industry. Cotton
producing states in India are Punjab, Haryana, Gujarat, Maharashtra, Rajasthan and Andhra
Pradesh. Though India has the largest cotton production in the world amounting to 9 million
hectors (25% of the world), only 15% of world production is taking place in the country, mainly
due to the low yield per hectare prevailing in the country.

The first mill in India came into existence due to attempt made by the Bowrea cotton Mill
in Kolkata by English enterprise but it did not work well. Later in 1854 in Bombay, CN Daver, a
Paris business man established the first cotton mill in Bombay.

In India there are 1767 textile mills of which 192 are in the public sectors, 151 in the co-
operative sectors and 1424 in the private sector. During 1985-86 production of yarn was 1454
million, which was raised up to 3005 million in the year 1997-98 in the country.

The Indian textile industry is passing through a great crisis recently, mainly because of the
changes in the world market. In the international market, whereas Pakistan, China, Korea, Japan,
Thailand, and other countries were able to increase their share, India’s shares were declined. This
slide got momentum whit the currency in South East Asia.

4
 Similarly, the of take yarn in the consuming countries has also gone down considerably
which eventually resulted in a 40% cut in the power of loom cloth production and 25% cut in mill
cloth production. Corresponding fall in exports was about 20%. The de-licensing policy of the
government led to the establishment of many mills throughout the country resulting in excess
capacity building. The reasons for the present crisis can be summarized as follows:

(1) The currency crisis in the South East Asian countries and consequent fall in
international prices for yarn and textiles.
(2) The production of cotton has not increased in relation to the capacity addition in the
industry.
(3) The policy of allowing export of cotton disregarding the requirement of domestic
industry. As a result, the price of the raw material shot up making production
uneconomical.
(4) It may also be mentioned that while the other countries are rapidly making their
industry more competitive by modernizing and restructuring, we lag behind on this score
also. China’s exports have increased by an overall 34.29% from the last year as against
India’s lowering exports.

A large number of power looms are closed due to the abnormal delay in getting payments from
buyers of fabrics. About 2.64 lakhs workers have been rendered jobless in our country due to
closure of textile mills. Nearly 1.05 lakhs from Gujarat, Madhya Pradesh, Tamil Nadu and West
Bengal have reported unemployed in the range of 15000 & 30000 due to closure of textile
industries.

HISTORY OF TEXTILE INDUSTRY

The textile industry, with its extremely long and rich history, has had a massive impact on
the world economy and the very evolution of modern society. Weaving is believed to be one of
the oldest surviving crafts in the world today, the actual origins of which are thought to date back
to Neolithic times 12,000 years ago. Even before that time, the same principle was used to interlace
branches and twigs to form protective fences, shelters and baskets. Once the practicality of
interlacing these kinds of materials was understood, further experimentation with other natural
materials probably produced the first basic fabrics and cloths.

5
EARLY SPINNING
There seems little doubt that one of the earliest textile fibers available for spinning into
yarn and then weaving into cloth was wool from sheep. The two-stage spinning process requires
that a fleece is opened to form a sliver of fibers which can be drawn out to produce an increasingly
fine thread. This is then twisted to form a yarn. Our early ancestors probably twisted a few fibers
from a lock of wool to form an extending length of yarn, which would be wound into a ball. At a
later stage the yarn was wound on to a stick and a simple flywheel added at the lower end to
produce a spindle. From this the spinning wheel developed, invented first in India and then
reaching Europe sometime in the late 14th century.

THE FIRST LOOM

The first "loom" is thought to have been something as simple as the straight branch of a
tree running reasonably parallel to the ground. The lengthwise warp threads were hung from this,
weighted at their lower ends and the weft threads interlaced to form a very rough cloth. A
framework later replaced the tree branch to form a vertical loom, as used by the ancient Greeks,
which was then switched to a horizontal orientation. The ancient Egyptians are said to have
invented the shuttle for holding the weft and to have attached the warp threads to two sticks in
order to part the threads so that the shuttle could pass through.

MECHANISATION

For centuries both the spinning and weaving processes were traditionally carried out by
hand in the home on a cottage industry basis - weaving by men and spinning by women (hence the
term "spinster"). The impetus for a major reorganization in textile production came in the 1700s
as inexpensive, good quality textiles, imported from India and the Far East, gradually began
replacing European goods in international markets.

The need was to increase domestic production and lower costs by substituting the
laborious hand processes for more efficient machine operations. Many important inventions took
place during this period, often having important spin-off effects on other parts of the overall
process of manufacture.

6
 In 1733 John Kay of Bury, England, introduced his "flying shuttle" which speeded up the
weaving process so much that output was often doubled. The problem was that the supply of yarn
from the spinners was insufficient to keep pace with the increase in production. The first
improvement to the early spinning machines came in 1737 when Lewis Paul and John Wyatt
invented the roller method of spinning which made the spinning of yarn possible without having
to work it with the fingers.

In 1764, a Blackburn weaver and carpenter, James Hargreaves invented the famous
spinning jenny which by 1766 had been improved to accommodate up to 100 spindles and so vastly
accelerated the spinning operation. This was followed by Sir Richard Arkwright's spinning frame,
which was powered by water and became known as the water frame. Soon after in 1779 came the
spinning mule, invented by the spinner Samuel Crompton from Bolton, combining the features of
both the spinning jenny and the water frame. The advances in spinning technology led in turn to a
bottleneck in weaving, as yarn was now being produced much faster than it could be woven. The
solution was to harness steam power to drive the looms and it was Edward Cartwright, an Anglican
clergyman, who worked out how to do this. By the mid1780s he had produced the first steam
powered loom.

INDUSTRIAL REVOLUTION
The mechanism of spinning and weaving led to radical changes in the organization of the
textile industry. Much of the new machinery was too large and expensive to be run in a domestic
environment and the advent of steam power meant that factories and mills sprang up near the
coalfields in the Northern England counties of Yorkshire and Lancashire - a period which marked
the end of the cottage industry and the start of the Industrial Revolution.

The Industrial Revolution brought massive social and economic change to people's lives
and to the traditional hand workers was seen as a threat to their very livelihood. They felt anger
and resentment at the unemployment they feared - feelings which were exacerbated by a time of
deep economic recession following the Napoleonic Wars. The potential for violence turned into
physical attacks on the mills and factories between 1811 - 1813 when workers known as Luddites
began to smash the machinery they blamed for their troubles. Yet the process of industrialization
went on unabated and there were further developments in the textile industry with the introduction

7
of the jacquard loom for weaving intricate patterns and experimentation with synthetic dye-stuffs.
By the mid-19th century Britain was leading the way as the greatest textile manufacturing country
in the world.

HOPTONMILL
The location of Interface Fabrics' manufacturing plant in a picturesque valley near Mirfeld
is steeped in textile history. It was the Wheatley family who arrived in the valley early in the 16th
century to begin their trade as clothiers and who built the oldest part of the current premises in
1812 as a totally vertical textile mill. But it was young Henry Wheatley who founded the company
Henry Wheatley and Sons in 1790 and who pioneered the manufacture of a superb range of ladies'
apparel fabrics in cashmere and other rare fibers. The business developed within the cycles of the
textile industry through the Industrial Revolution until the family sold the business in 1964. John
Wheatley Bell and his son David Wheatley Bell are the 6th and 7th generations of the family
business; they are still landowners in the valley and are shareholders in the Hopton Estates.

Interface Fabrics - or more accurately Camborne Fabrics as the company was previously
known - first became associated with Hopton Mills in 1980. At this time David Wheatley Bell,
using his initiative to keep the mill productive, sold his looms to Hopton Weavers Ltd, who then
moved to Hopton Mills and became tenants of Henry Wheatley & Sons. Hopton Weavers operated
as commission weavers and they began to undertake some of Camborne's weaving, with some of
the company's finishing being handled by Henry Wheatley's finishing department which was
under-utilized. This relationship continued until August 1984 when the parent company, Allied
Textiles, decided that the mill no longer fitted into its corporate plan and Camborne were able to
purchase the freehold site and buildings. Camborne's ownership of Hopton Mills was the
company's first experience of direct involvement in weaving and cloth finishing.

GLOBAL SCENARIO OF TEXTILE INDUSTRY

The Textile & Clothing trade in the global market is fast changing with the scaling up of
uses of textiles in diverse areas. Asian countries including India play a dominant role in the
international trade of the global market. China has the major share in Textile & Clothing trade in
the International market and both Bangladesh & Hong Kong have a significant share. It I reported

8
that Asian countries export most of Textile & Clothing apparel to Europe, North America, and
USA etc.

Asian countries are gaining in textile trade due to lower costs compared to African, Europe
&South American countries. As per the Global Textile & Apparel Industry: Vision 2015, World
textile and apparel trade is expected to reach US$805bn by 2015 from UA$650bn in 2010. At
present few countries like Bangladesh, Thailand, Cambodia, Sri Lanka, Pakistan contribute major
share in Forex earnings of their country from Textile and Clothing trade, though their share in the
world market is not very significant.

Asian countries are facing challenges in the global market due to volatility in price, rising
input cost, energy crisis and lack of marketing initiative / exposure etc. In addition, initiatives need
to be made in the area of Research and Development, skill development and Capacity building of
the industry as a whole. Industry has to be in demand driven mode.

It is also noticed that tariff rate in few Asian countries are extremely high, which became
a barrier to scale up the share in international market. At present a few Asian countries are enjoying
a special status in the global market as per WTO guidelines and able to retain share till date. But
this may not last long because of growing competition emerging from other countries. Government
of the concerned countries also facilitated the sector to grow by framing policy and keeping
provision of incentives/ concessions to encourage for international marketing. However, India is
not enjoying such status and over the years.

India’s contribution from textile and clothing trade in country’s total Forex earning shows
a declining trend in the last decade. Government of India has made a good number of initiatives
for capacity building, skill development, product diversification and enhancing global share.

Most of the production happens in Asian countries. China and India are the leading
manufactures in textile. Textile Industry has different sectors like jute, yarn, apparel, clothing and
garments. Each country has its specification in respective sectors. Coming to India, India is large
manufacture of yarn. China for silk yarn and so on.

9
CURRENT SCENARIO OF TEXTILE INDUSTRY IN INDIA

Indian textile enjoys a rich heritage and the origin of textiles in India trace back to the Indus
valley Civilization where people used homespun cotton for weaving their cloths. Rig Veda, the
earliest of the Veda contains the literary information about textiles and it refers to weaving.
Ramayana and Mahabharata, the eminent Indian epics depict the existence of wide variety of
fabrics in ancient India. These epics refer both to rich and stylized garment worn by the aristocrats
and ordinary simple cloths worn by the common people. The contemporary Indian textile not only
reflects the splendid past but also cater to the requirements of the modern times.

India is the second largest producer of textiles and garments in the world. The Indian
textiles and apparel industry are expected to grow to a size of US$223bn by 2021, according to a
report by Techno Park Advisors. This industry accounts for almost 24% of the worlds ‘spindle
capacity and 8% of global rotor capacity. Abundant availability of raw materials such as cotton,
wool, silk and jute as well as skilled workforce have made the country a sourcing hub.

The textiles industry has made a major contribution to the national economy in terms of
direct and indirect employment generation and net foreign exchange earnings.

The sector contributes about 14 per cent to industrial production, 4 per cent to the gross
domestic product (GDP) and 27% to the country’s foreign exchange inflows. It provides direct
employment to over 45 million people. The textiles sector is the second largest provider of
employment after agriculture. Thus, growth and all-round development of the industry has a direct
bearing on the improvement the India’s economy.

➢ GROWTH

The Indian textiles is set for strong growth, buoyed by strong domestic consumption as well
as export demand. The most significant change in the Indian textile industry has been advent of
man-made fibers (MMF). India has successfully placed its innovation range of MMF textiles in
almost all the countries across the globe.

10
 ❖ MMF production recorded an increase of 10% and filament yarn production due 6%
in the month of February 2014. MMF production increased by about 4% during the period
of April 2013- February 2014.
❖ During April 2013- February 2014 cotton yarn production increased by about 10%.
Blended and 100% non-cotton yarn production increased by 6% during February 2014
and by 8% during the period of April 2013- February 2014.
❖ Cloth production by mill sector registered a growth of 9% in the month of February
2014 & of 6% during April 2013-February 2014.
❖ India’s textiles sector is one of the mainstays of the national economy. It is also one of
the largest contributing sectors of India’s exports contributing 11% to the country’s total
exports basket.
❖ The textiles industry is labour intensive and is one of the largest employers. The
industry realized export earnings worth US$41d.51bn in 2013-2014.
❖ The textile industry has too broad segments, namely handloom, handicrafts, sericulture,
power looms in the unorganized sector and spinning, apparel, garmenting, made ups in
the organized sector.

The Indian textile industry is extremely varied, with a hand-spun & hand woven at one end of
the spectrum, and the capital-intensive sophisticated mill sector at the other. The decentralized
power looms or hosiery and knitting sector form the largest section of the Textile sector. The close
linkage of the industry to agriculture and the ancient culture, the traditions of the country make the
Indian textiles sector unique in comparison to the textile industry of other countries. This also
provides the industry with the capacity to produce a variety of product suitable to the different
market segments, both within and outside the country.

➢ GOVERNMENT INITIATIVES

The Indian government has come up with a number of export promotion policies for the
textiles sector. It has also allowed 100% FDI in the Indian textile sector under the automatic route.

11
COTTON TEXTILE INDUSTRY IN TAMILNADU
Traditionally, Tamil Nadu has been in the vanguard of industrialization among the Indian
States. The State has had a strong presence in textiles, engineering, automobile production and
auto components manufacture and recently in Information and Bio Technology sectors. Tamil
Nadu has always been a safe haven for the investors owing to a favorable business climate,
excellent infrastructure for trade and investment, outstanding law and order maintenance, peaceful
industrial relations and healthy socio-economic reforms.
➢ Tamil Nadu is now ranked:
✓ First in the number of factories
✓ First in the number of workers employed in the factories sector
✓ Third in Gross Industrial Output and
✓ Third in Net Value Addition

More than 3000 foreign JVs and 100% foreign subsidiaries including Ford, Hyundai, Saint
Gobain, Nokia, Motorola, Dell, Renault-Nissan, and Daimler, in addition to major local
manufacturers like Ashok Leyland, TVS group, Titan, Murugappa group, cement companies etc.,
have manufacturing bases in Tamil Nadu with a Foreign Direct Investment (FDI) of over $ 10.0
billion. Tamil Nadu is increasingly becoming the choice of destination for foreign investors, which
provides them with a global reach. Ranked among the top three Indian States in terms of
Purchasing Power Parity (PPP), Tamil Nadu is a dream come true for all those looking for a rich
cultural heritage, a highly productive work force, excellent infrastructure and cost-effective
operations.

12
PROCESS FLOW CHART OF TEXTILE INDUSTRY

Raw Material

Bale Borach

Mill

Spinning Mill Composite Mill

Yarn

Hand Loom Power Loom

Knitting

Knitted Cloth

Market

13
2.2 COMPANY PROFILE
The KKP groups started dealing in transport business in 1985. The KKP Group of
companies is located at NAMAKKAL, a town well known for lord Anjaneya temple and lorry
transport business, was founded by (late) shri.K. PERIYASAMY. He started the group flag ship
company KKP TEXTILE (P) LTD, in the year 1985. The concern has production capacity of just
1760 spindles. It was further developed by the founder’s able, energetic and enterprising the
owner’s son’s shri. P. NALLATHAMBI AND shri. P. CHINNASAMY over a period of 10 years
the spindles, giving direct employment to hundreds of poor people and further employment
through the allied trade like transport, spares etc.,

➢ RESOURCES

They started one more unit- KKP SPINNING MILLS PVT LTD., in the year 1995 with a
capacity of 13,104 spindles.

In the year 2004, one ultra-modem unit with of 22000 spindles with latest technology
machineries, layout and structure, keeping the non-quota in mind. The group’s spindle capacity
has then risen to the present 73,192 and 1080 rotors with potential for further expansion. The
promoters are very quality conscious and always keep the technological up gradation as an ongoing
process by equipping the two units with latest machinery like imported Auto comber, draw frames
and comber and quality systems.

The mills are equipped with modem quality control laboratory with latest testing
equipment’s in order to give more importance to the quality of yam produced by them. The
unending quest to improve quality standards in all areas of operation, their organization stands for
quality standards in all areas of operation, their organization stands for quality is based on the
participation of all members and aiming. At long term success through, customer satisfaction by
improving the quality of yam too meet the future demands.

Now the mill has its product profiles with the count range of 16s to 60s for various end uses
like hosiery, warp and hanks both in single and doubled. Also, the mill is capable of producing

14
any type of cotton yam other than product profile counts both in carded and combed when the
request made.

The management started their own power generation plant in KKP spinning unit which
make them to compote with the international giants like Chinese yam & fabric manufactures.
Our fabric production per day is 50,000 meters. To the entire quantity warping and sizing process
is done from our own imported warping and sizing machines. These machineries are installed in
spinning mills premises.

Our group has started made ups division where they produce door curtains, bed spreads
and pillow cover for export market.

Recently our groups came out with gent’s garments in the brand name of “ZEST” to
domestic markets. In continuation of systematic approach, we are implementing ISO Quality
System a Decade before and we are now updating our system to new version of ISO 9001:2008.
All the ventures make this management as a trend setter in Namakkal area as well as Western
Tamil Nadu.

Production process of yarn yields wide varieties of wastes, which can be used for:
➢ Noil used to produce yarn by allowing it to reproducing process.
➢ Hard waste used in the workshops.
➢ Flat strips used as surgical cotton.

15
COMPANY DETAILS
Name of the Company: KKP SPINNING MILLS PVT LTD
Name of the Proprietor: Shri. P. NALLATHAMBI
Head Office: Namakkal
Status: Private Limited Company
Year of Establishment: 1985
Type of Industry: Cotton Yarn, grey fabric, weaving fabric
Cotton Variety: A90, A87, P90, P43, P53, P48, K48, K53
Cotton Purchased from: Gujarat, Maharashtra, Andhra Pradesh
Yarn Exported to
Domestic Market: All over India
Foreign Market: Malaysia, German, Singapore, Myanmar & Hong Kong
Appropriate Cotton
Consumed One Day: 700 Kg
Certification: ISO 9001-2002
Corporate Identification Number: U17111TZ1993PTC00473
Working hours: First shift 7am-3pm
Second shift 3pm – 11pm
Third shift 11pm – 7pm

KKP GROUPS

➢ KKP Textiles limited - unit 1 N. Pudupatti, Namakkal district.

➢ KKP Textiles limited - unit 2 Viralimalai, Pudukkottai district.
➢ KKP Spinning mills limited – Perumapatti, Namakkal district.
➢ KKP Weaving and processing mills limited.
➢ KKP Fine Linen limited.

16
VISION
To strive for excellence through commitments, integrity, honesty and team work. To
produce the highest quality fine and super fine count cotton yarn in the world and to provide the
best in customer service in the industry.

MISSION
Mission is the basic constituent of the company it does not change with the time rather all
the operation of the company is for the fulfilment of the mission. It is the contribution of the
company to the society.

To be a model amongst the textile spinning, capable of producing high quality blended yarn
for knitting and weaving.
❖ Complete satisfaction of buyers/consumers is our motto.
❖ Manufacturing of blended yarn as per the customers’ requirements and market
demand.
❖ Keeping pace with the rapidly changing technology by continuously balancing,
modernization and replacement (BMR) of plant and machinery.
❖ Enhancing the profitability by improved efficiency and cost controls.
❖ Betterment of mills employees as quality policy.
❖ Protecting the environment and contributing towards the economic strength of the
country and function as a good corporate citizen.

OBJECTIVES OF THE COMPANY

✓ To supply cotton yarn to customers
✓ To promote industrial development in virtual areas.
✓ To provide gainful employment to virtual areas.
✓ To safeguard the weaker section from the exploitation of large sellers

GOAL OF THE COMPANY

✓ To produce at cheaper cost
✓ Avoiding wastage
✓ Attaining maximum benefit.

17
PRODUCT PROFILE
➢ YARN

Yarn consists of stands of materials twisted together. Each stand is made up of fibers, all
shorter than the piece of yarn that the form. These short fibers are spun into longer filaments to
make the yarn.

The characteristic of spun yarn depends on the amount of twist given to the fibers during
spinning is the process of creating yarn from various raw materials. The characteristics of yarn
also depend on the material used, fiber length, alignment, and quantity of fiber used.

A fairy high degree of twist produces strong yarn a low degree of twist produces softer, mere
lustrous yarn and a very tight twist produces crepe yarn. Their number of parts also classifies
yarn. A single yarn is made from a group of filament fibers twisted together.
Ply yarn are made by twisting two or more single yarn. Cord yarns made by twisting together
two or more-ply yarn.
Earlier spinning or air texturizing process manufactures yarn. Yarn manufacturing was
one of the very first processes that were industrialized. Yarn can be made from any number of
natural or synthetic fibers. These natural fibers come from plants, animals and minerals,
synthetic fibers have strength, artificial luster are fire retardant, very 50% of spun yarn is made
from cotton. Textured crimped or bulked yarn comprised one half of the total spun. Textured
yarn has higher volume due to physical, chemical or het treatments; crimped yarn is made of
thermoplastic fibers of deformed shape. Bulked yarn is formed from fibers that are inherently
bulky and cannot be closely packed.

18
HISTORY OF YARNS
Yarn is used to make textiles using a variety of process including weaving, felting,
natural fiber-cotton, silk, wool represent major fibers available to ancient civilization, although
the other fibrous materials may also have been used especially the best fibers from Hemp, jute
and sisal.

The cotton plant is indigenous to India, Egypt, and the warmer regions of America. In
these regions, the fiber was first used to make textiles. Cotton did not achieve commercial
importance in Europe until after the colonization of the new world.
Silk Culture remained especially of Chinese from its beginning (12600be) until the 6th century
A.D, when the worms were first raised in the Byzantine Empire.

In 1892, the first synthetic fiber rayon developed and also in 1939 its successors Nylon
and the various forms of polyester used. Most synthetics are made by firing a thick solution of
polymerized chemical through “spinneret nozzles” and textile industry radically. Its development
has reduced world demand for natural fibers. Until about 1300, yarn has spun on the spindle and
wheel. Spindle is the earliest spinning tool and spinning wheel, which first appeared in Europe.
Spinning wheel is invented in India between 500 and 1000 AD.

A number of developments during the 18th century further mechanized the spinning
process. In 1733, the flying shuttle invented by john key and followed by Hargreaves’s spinning
jenny is machine that operated a number of spindles at one time, that yarn could be produced in
appreciable volume, in 1769, Richard.

Arkwright’s spinning frame and in 1779 Samuel crumpets mule increased yarn
production to the part at which one worker could operate 1000 spindles at one time.
The ring frame was invented in 1828 by an American John Thrown and is widely used today.
This system involves 100 spindles mounted vertically inside a metal ring.

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ORGANISATION STRUCTURE
Organization structure is a hierarchy of people and its functions identifies each job and its
function and where it reports to within the organizations. This structure is developed to establish
how an organization operates and assist an organization in obtaining it goals for future growth.
Organizational structure is the established pattern of relationship among various part of the
enterprise.

The KKP Spinning Mills Pvt Ltd the whole of the management and direction of
subordinates are divided according to the type of work involved. At the higher levels, the
structure’s by grouping all the work into major departments. All related and similar works are done
in the department under one executive KKP Spinning Mills Pvt Ltd have a well-defined functional
structure.

An organization is mainly concerned with the allocation of duties and responsibilities and
delegation of authority like all other organization in KPP, for proper functioning in the most
competitive environment, the function of management is dividing into 5 main sections
departments. They can be named as production department, Finance department, Personnel
department, Marketing department, Quality department, Maintenance department, each
department is headed by a manger who takes all the important decisions concerning to that
department. The organization setup is clearly depicted in the organization chart.

20
 2.3 ORGANIZATIONAL CHART

Chairman

Board of Directors

General Manager

Finance HR Marketing Production Quality

Manager Manager Manager manager Manager
M
M

Accountant Assistant Assistant Mill Manager QAD Manager

Manager Manager

Cashier Time Keeper Dealers Spinning Manager QAD in Charge

Deputy Spinning Investigators

Agents
Master

Assistant Spinning
Master

Supervisor

Workers

21
 CHAPTER 3

DEPARTMENT PROFILE

Organization involves the dividing and grouping of work to be done in an enterprise.

Dividing the work naturally means the identification of individual activates, which have to be
undertaken for the attainment of the organizational objectives. But one the various activities have
been identified, it’s necessary to group them together on some logical basis so that a term can be
organized. Department literary means division of business or dealing with specific area of activity.
Every organization has their own departments. For arranging departments things are going on a
sequential order. In departments are divided in to sub departments for reduce work load. For the
departments wise specification peoples are very easily to contact their own supervisor or employer.
“Department is the process of grouping activities into units for the purpose of administration”.
An organization is a roof under which group of people work together as a team towards
common objectives. This is achieved when there is an organized effort from all concerned. The
organizational objectives are desired state of affairs, which an organization attempts to realize.
Realization of objectives sought through the coordinated efforts of the people and resources, which
constitutes an organization. Resources include men, money, machines and material. Essence of
management is integration of various organizational departments. In every organization there are
mainly 5 departments such as production, marketing, personnel, finance and quality management
which coordinate the work and maintain a good relationship between superiors and subordinates,
it is dissipated mainly by the division which is made in the organization for the proper functioning
with at most care and attention towards the achievements of goals
Like all other organization in KKP Spinning Mill, for proper functioning in the most
competitive environment, the function of management is dividing into 6 main
sections/departments. They can be named as: -
➢ Production department
➢ HR department
➢ Finance department
➢ Marketing department
➢ Quality department

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3.1 PRODUCTION DEPARTMENT

➢ In modern business world, there are two types of organization with respect to production
unit. They are
➢ Service sector
➢ Product sector
➢ The organization, which is concerned with service sector, delivers the final products
which are intangible in nature, while the other organization is concerned with the
production of tangible goods which are got its own physical existence.
➢ The production is the process of transforming raw materials or purchased components into
finished products for sale. Thus any process involving the conversion of raw materials
and components into finished goods is called production.
➢ In KPP Spinning Mills yarn is produced form the cotton which is extracted form seeds of
cotton plants which are purchased from various parts of our nation. Mainly the production
manager controls functions of this department.

FUNCTIONS INVOLVED IN KKP SPINNING MILLS

➢ Fixation of standard upon which yarn must be produced which is usually represented as
Hank.
➢ Operation of purchase and storage of materials.
➢ Planning and controlling the operations.
➢ Repairs and maintenance of machinery.
➢ Inventory and Quality control.

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STRUCTURE OF PRODUCTION DEPARTMENT

Production Manager

Mill Manager

Spinning Master

Deputy Spinning
Master

Assistant Spinning
Master

supervisor

Jobber

Workers

24
PRODUCTION PROCESS
From the cotton godown, the bales are taken to the production department for process,
where the bales are opened and laid on the floor layer by layer. This is called as mixing and the
same is allowed to conditioning for 24 hours because it helps to improve the fiber strength since
cotton is the natural fiber and it is having a property of absorbing moisture from the air.
Production process of yarn is carried out by using various types of machines and each process is
carried out and considered as separate sections. They are:
RAW MATERIAL
Polyester and cotton are the main raw material required for the production of the yarn. The
polyester and cotton mainly come from Maharashtra, Andhra Pradesh, UP
MIXING
Mixing is the first stage of production process. Standardization is the main aim of mixing.
It is the process of mixing polyester and cotton is the standard proportion.
BLOW ROOM
Bales are different variety of cotton are opened and layer of cotton from able each are fed
alternatively with a view to obtain uniform blend. For getting different counts as yarn, cotton of
different variety and soft waste are mixed in a predetermined proportion. The cotton for each
mixing is fed into the plant in the blow room where external impurities are removed. The
compressed cotton opened into small tufts and a lightly compressed continuous sheet known as
LAPS are rolled upon cylindrical rod. The waste obtained in the process are droppings, quality
fly and lap bits. In the case of chute feed blow room, the cotton converted into sliver bye-passing
carding.

CARDING

The department is very important one. Carding is the backbone of spinning mill. Here, the
lap form converted as silver, by continuous rotating cylindrical surfaces termed as licker-in,
cylinder and doffer etc. Cleared by removal of NEPS and foreign matters and silver is produced
which is collected in cans. The waste in the process is sliver waste cylinder fly, flat strips, roller
strips and sweepings.

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COMBING
In combing process cotton fibers are separated by needles and predetermined part of sharp
fibers is removed as waste and sliver is formed with suitable drafting. The fibers are arranged in
parallel format combing is an optional process of manufacturing better quality and finer counts as
yarn. This precedes the drawing and sliver laps process feeding.

DRAWING

The carding cans are arranged four rows of four cans and eight silvers come to a same
path in a polished plate through guide rolls. This arrangement is called as “Creel”. Where the
eight silvers combine to one this term technically called doubling of silvers. Those silvers passed
through 3-4 pairs of rollers, which are running different speeds and it is called drafting rollers and
parallelized and delivered in the form of silver which are collected in the cans. In the drawing
frame, sliver is produced by combing a specified number of sliver and stretching them
proportionately, the waste arising in the process is sliver waste and sweeping.
SIMPLEX
In this process, the thickness of drawing sliver is reduced and sliver is given twist and
wound on the bobbing. The production depends upon the spindle speed and twist per inch, number
of spindles etc. the waste collected in the process is roving ends and sweepings.

RING FRAME

The final yarn is spun on ring frame by drafting and twisting the rove from simplex. The
draft end twists vary depending upon the count, quality of yarn required. The yarn is collected by
winding on cops.

CONE WINDING

The yarn from ring frame is wound in cones suitable for market. In this process faults like
thin and thick places are removed by passing through slit cleaner. The auto corner has facility of
electronically cleaning the yarn and splicing instead of knotting in the conventional cone winder.
Saleable hard waste is obtained in this process.

26
DOUBLE WINDING

Two yarn threads are wound parallel on a cheese on double winder.

DOUBLING

The yarn received from double winding is twisted on ring doubling machine and wound
on cops. This yarn is taken to cone winding department for winding on cones for market.
PACKING

40 cones are packed in HDPE woven sacks and it is ready to go into the market.
4.6kgs hank yarn is packed into the form of bundle. About 40 bundles are packed into woven sacks
and it called chippan which is ready to sell in the market. Each unit consists of a wide variety of
machines which are placed in this mill based upon the sequence in which the process progress in
producing yarn from various varieties of cotton. In this mill layout being followed for production
process is process layout. Process layout means the alignment of similar machines and equipment
which performs similar functions is placed in plant locations which are linked to other machines
for completing the cycle of production.

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 PRODUCTION PROCESS CHART

Making & Bleeding

Blow Room

Carding Pre Comber

Drawing

Breaking Drawing Comber Lap Former

Finisher Drawing Drawing

Simplex

Reeling Spinning Winding

Cone Winding

Bundling Double Winding Packing

Baling Market

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3.2 HUMAN RESOURCE DEPARTMENT
Human resource management is the planning, organizing, directing and controlling of
procurement development, compensation, integration and separation of the human resources to the
end that individual organization and social objectives are the HR department of KKP Spinning
Mill is very dynamic. Employees are the biggest strength of any organization and the HR
department realizes this very well. This is very evident from the way the HR department handles
all its employees. They take utmost care to select, train, motive and retain all the employees. They
are continuous developmental programs for all the employees.

STRUCTURE OF HR DEPARTMENT

HR Manager

Assistant Manager

Time Keeper

FUNCTIONS OF HUMAN RESOURCE DEPARTMENT

➢ Performance appraisal

A performance appraisal is a systematic, general and periodic process that access an individual
employee’s job performance and productivity in relation to certain pre-established criteria and
organizational objectives.
➢ Interviewing personnel

An interview consisting of a conversation between a job applicant and a representative of an

employer which is conducted to assess whether the applicant should be hired. Interviews are one
of the most popularly used devices for employee selection.

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 ➢ Salary administration

A large measure of the Compensation team’s expertise surrounds salary administration or

the review of salaries across the organization.

➢ Turnover management

In human resources context, turnover is the act of replacing an employee with a new
employee. An organization’s turnover is measured as a percentage rate, which is referred to as its
turnover rate.
➢ Record keeping

The activity of organizing and storing all the documents, files, invoices, etc. relating to a
company’s or organization’s activities.
➢ Compensation

Compensation is the total cash and non-cash payments that you give to an employee in
exchange for the work they do for your business. Compensation is more than an employee’s regular
paid wages. It also includes many other types of wages and benefits.
➢ Staff support

The people who work for an organization to keep it running and to support the people who
are involved in the organization main business: support staff such as administrators, supervisors,
and electricians. Managers often depend heavily on their support staff.
HR STRATEGIES
Strategies are fair broad statement of intent to which show the type of action required to
achieve the underlying objectives of an organization. In every organization there are set of
objectives which help them to attain their common goal. HR strategies which are being
implemented in the mill help in the achievements of core corporate strategies…
The core corporate strategies are including:
❖ Offering best product
❖ Selling best price

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Strategies of offering best product
The strategy of offering best product require best people. The HR strategies, which are being
implemented in this mill, are: -
• Employing the people with original and creative skills.
• Empowering the people.
• Retaining competent & innovative brains.
• Encouraging employees for risk taking.
• Integrating performance analysis and developing them towards ultimate goals of the mill.

Strategies of selling at best price

Selling the product at best price is possible by producing the product at low cost. Producing high
quality product at low cost is the best strategy in the market economy. The HR strategies related
to these aspects, which are implemented in the mills are: -
➢ Employing the work force with creative skills in developing technology and methods of
minimizing cost.
➢ Trimming the workforce to cut the cost.
➢ Managing organizational exit policy strategically.
➢ Moulding the employee attitude towards low risk taking & cost cutting.

HR PLANNING:
Planning for human resources more important than planning for any other resource as demand for
the latter depends upon the size and structure of the former. Management of human resource hardly
begins from human resource planning; it is the basis of all sort of other functions of organization.
Human resource planning anticipates not only the required kind and number of employees but also
determines the action plan for all the functions of personnel management. HR planning
implemented in the KKP attempts to:
Check the corporate plan.
❖ Its offsets uncertainty and change which enables the mill to acquire right person, at right
time in right place.
❖ It anticipates the cost of salary enhancement, better benefits and all the cost of human
resource facilitating the formulation of budgets in an organization.

31
 ❖ It helps to take steps to improve human resource contribution in the form of increased
productivity, sales, turnover etc.
❖ It leads the development of various sources of human resources to meet the organizational
needs.
❖ It helps in the control of all the functions, operations, contribution and cost of human
resources.
❖ It gives the data about the type of test to be used and interview qualifications, intelligence,
values etc.
❖ It also gives the data related to the physical facilities, working condition& the volume of
fringe benefits like canteen, company stores & first aid facilities.

TRAINING & DEVELOPMENT

Organization an individual should develop and progress simultaneously for their survival
and attainment of mutual goals. So, every modern management where newer technology is being
implemented should provide training to their employees to make them aware about the present
scenario of organization. Employee training is specialized function and is one of the fundamental
operative functions for human resource management.

After an employee is selected, placed and introduced he/she must be provided with training
facilities. Training is not the act of increasing the knowledge skills of an employee for doing a job
it is also concerned with the rules and norms in the organization with respect to work completion
leave allotment, procedure in taking leave and all such activities. Thus, training is a program
conducted to make aware of the internal matters of an organization to an employee of an
organization.

Jobs and organizational requirement are not statics, they are changed from time to time in
view of technological advancement and changes in awareness of the total quality and productivity
management organizational efficiency, productivity progress and development to a greater extend
depend upon training.

In KPP, the program is given to their personnel to:

❖ Make them aware of standards of performance.
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 ❖ To meet the needs of emerging situations such as damage in any of the machines.
❖ To make them further developed in their ISO 9000 series of standards.

Training program in KPP Spinning Mills Ltd implemented in 3levels:

❖ Plant level operations
❖ Middle level management personnel
❖ Higher level management

Plant level operation

It is given inclusive of fitters and cleaners include:

❖ On the job training in their respective jobs.

❖ Quality awareness programs at the mill premises.

In this program the operative must be oriented towards the ISO 9000 Quality System
requirements and they must briefly be explained about their role in achieving this objective. An
ideal way to conduct this program is to exhibit the defective and non-conformers in the
intermediate stages of production in the lecture hall.

Middle Level Management Personnel

Middle level personnel must have skill to handle other fields of the organization. They
must have an intimate knowledge of the work and running of his department and an intelligent
awareness of the whole organization& its policies.
The areas which the personnel could be trained are as follows:
Productivity
❖ Process control
❖ Cost control
❖ Maintenance
❖ Defects & remedial action
❖ Energy conservation in spinning mill
❖ Modern technologies automatic machines in spinning.

33
Higher Level Management
The role of higher-level management in achieving the certification for ISO 9000 quality is
more important than anybody else in the organization. The higher-level management personnel
must be trained in the specific requirement of ISO 9000 Quality system. They should be trained
in: -
❖ Working knowledge and understanding in: -
✓ Organizational set up
✓ Objectives
✓ Probable defects and the causes
✓ Identification & channelization system
✓ Assessment of the performance.

❖ Methods of Scrutinizing
✓ Performance appraisal
✓ Documentation & its control

RECRUITMENT
Recruitment is the process to discover the sources of manpower to meet the requirements of
the staffing schedule and to employ effective measures for attracting that manpower in adequate
numbers to facilitate effective selection of an effective workforce. In other words, recruitment is
only one of the steps in the entire employment process.
➢ Recruitment of non-technical staff
A test and interview will be conducted by the company on the basis of performance
candidates will be appointed.
➢ Recruitment of technical staff
Technical employees are selected by various sources and the company will be selected on
the basis of interview.
➢ Recruitment for manager post
They are selected by the company. Advertisement for manager post is published in the
newspaper. These applications are screened, tests and interviews are conducted and
qualified persons are appointed.

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SELECTION
The selection procedure is the system of functions and devices adopted in a given
company to ascertain whether the candidate’s specifications are matched with the job
specifications and requirements or not. The following is the selection procedure that the HR
department practices to hire its employees.
➢ Interview
For entry level jobs, the candidates are candidates are interviewed by a HR person. They
are asked a few basis questions about their education, previous work experience if any,
languages known etc. This is done to evaluate the candidate’s ability to communicate freely
and also other skills.
➢ Psychometric Tests
For higher- and top-level jobs, candidates are asked to answer a few questions which
basically test their sharpness, analytical ability, ability to handle stress, presence of mind,
etc. This is done as managers are required to work under stress all the time and still maintain
a cool head to make some vital decisions.
➢ Group Discussion
In campus recruitment students are involved in a group discussion, where they will be given
a topic on which the group has to deliberate, discuss and arrive at a solution.
➢ Reference Letter
Recommendation and views of previous employer are given due weight in selection
process.

COMPENSATION
This function is concerned with determination of adequate and equitable remuneration of
the employees in the organization for their contribution to the organizational goals. KKP provides
group insurance scheme and cash awards. Personnel policies are taken by the personal manager
after discussion with Managing Director and Chairman, these policies are passed.

WAGE AND SALARY ADMINISTRATION

In KKP, Personal Manager has a role of advisory nature. Actually, the settlement of
wage/salary is done by accounts department. The trade union and management will decide upon
how much to pay for each employee and worker based on his or her work performance.

35
HUMAN RESOURCE DEVELOPMENT SECTION
Human Resource is considered as the most vital asset of the organization. KKP has well
defined employee power which helps the organization to perform well in the market. Human
Resource Department is headed by the manager, who organizes training programs for workers and
managerial staff.
Main Functions of HRD Department
❖ Identifying training needs
❖ Arranging required training
❖ Maintaining the training needs.

PERSONALITY DEVELOPMENT PROGRAME

Personality development programs are conducted on a regular time period for the
development of both workers and managers.

PROMOTION
In KKP Spinning Mills Ltd, the employees selected are mainly posted as trainees of the
mill for carrying out various productions related activities. After completing certain period, they
are promoted to the next grade based upon certain category. Later Government passed certain rules
and norms for promoting any employees from present level to the next level.
This declaration came into effect from 1-12-2001& followed in the mill to promote the newly
appointed as well as previously employed workers. The category employed for this is as follows:
-
• Trainees should have at least 60%attendance in total to the working days, otherwise the
trainees are not allowed to the work thereafter.
• Paid trainees should be able to do the workload of the permanent worker after6 months in
the range of 50-75% & must have an attendance percentage of 90%of the total working
days then only he/she will be considered for the next grade.
• After 6 months training the paid trainees shall be able to do 75-100% of the work load of
permanent worker and he should have above 90% of attendance in total, then only he/she
will be considered for next grade level.

36
 • After third training section training is given the paid trainees would be able to do 75- 100%
of the total workload of a permanent worker and he should be able to keep his/her
attendance above 90%. Then only he/she will be considered for higher grades.
• After fourth section training the trainees will be given training to carry on the full work
load of a permanent worker and if she/he is able to do the work without much strain and
He/she has developed in such a manner that he/she is maintaining his/her attendance above
90%. Then only they will be considering for the next higher grade.
• Even though all the above conditions are satisfied, but he/she is not physically fit to carry
out the workload given then they will not be considered for the next grade.
• If there exit any reasonable causes for the absence of trainees from the work, then he / she
will be allowed to work in the same grade and then he/she will be exposed to same rules
and regulation which regulate the promotion system existed in the mill.
Personnel department in KKP gives importance in providing welfare measures to their personnel.
Welfare measures include statutory & non- statutory.

WELFARE MEASURES
Welfare measure include provident fund, gratuity, employee state insurance, bonus, dearness
allowance leaves with wages, family pension fund, overtime allowances, night allowances. These
are mainly given in the form statutory & non-statutory measures. Statutory welfare measures.
✓ Washing facility–sufficient number of water taps, wash basin and toilets.
✓ Sitting facilities–chairs and other furniture.
✓ First aid facilities.
✓ Rest rooms for workers are provided separately.
✓ Provident fund-it is governed as per the rules and norms specifies by the government. It is
contribution by the employees in this mill is 12% of the basic wages.
✓ Gratuity-It is governed as per the companies act 1956. The gratuity is paid to employees as
per the mill existing gratuity scheme or as per payment of gratuity act whichever is
beneficial to the employees.
❖ Welfare
✓ Overtime allowances
✓ Shift allowances

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 ✓ Leave
No: of leave/ holidays in calendar month
• Privilege leave-30 days
• Casual leave-15 days
• Sick Employee leave-15 days
✓ Holidays
• Paid holidays-10 days
• Bata

Non statutory Welfare measures

✓ Accident benefits - if the employees are covered under ESI Scheme meet on with any sort
of accident on duty, he/she will get the claim amount from the ESI contribution made by
them and as well as from mill.
✓ Voluntary retirement–during voluntary retirement the employee is confined to get a sum
of money from the gratuity and an equivalent amount from the organization.
✓ Festival advance - permanent workers will get certain sum amount based upon the salary
which he gets normally as festival advance. This amount is recovered from the salary after
the payment of advance in equal 5 instalments.
✓ Health& Safety
✓ In every organization for efficient working process requires the sound health of the persons
engaged therein. Unless the workers are physically and mentally healthy, they cannot
perform their duties efficiently, properly and smoothly. The environment of the factory
where workers are working must be clean and free from infection, insanitation, dust &
fumes, artificial humidification, overcrowding and other conditions injurious to the health
of the workers.

In KKP the provisions regarding this aspect are followed to the best in order to maintain both the
health and mental condition of the worker in the mill. They are as follows: -
➢ CLEANLINESS
With respects to these following measures are taken into consideration: -

38
• Accumulation of the dirt and refuse are removed daily from the floors of the workrooms,
passages.
• The floor of the work room is cleaned in every week using disinfectant.
• Machines are cleaned in every week.

➢ DISPOSAL OF WASHES AND EFFLUENTS

Effective arrangements are made in the mill for the treatment of washes and effluents
arising after the spinning process of cotton as approved under the prescribed rules.

➢ DUST & FUMES

The dust which is arising out of the blow room due to the opening up of cotton is likely to
be injurious to the workers. For this purpose, effective measures are taken in the mill in
order to avoid inhalation of the dust.

➢ OVERCROWDING
In order to prevent overcrowding the following measures are adopted in the mille very
worker is separated from each other in every section of the production unit with at least
14.5 cubic meters. After considering these aspects in the mill the workers are given
instructions about the maximum number of workers to be accommodated in each section.
➢ LIGHTING
Every part of the mill is provided with sufficient light and also effective measures are taken
to avoid the formation of glare and the formation of shadows which will cause eye strain.
➢ DRINKING WATER
In the mill effective arrangements are made for the purpose of drinking such as: -
➢ Water facilities are provided at convenient place which will be easily accessible to
everyone.
➢ Place where the drinking facilities are cleaned daily and also cleaned to ensure hygiene.
➢ LATERNES & URINALS
Sufficient facilities are provided to both workers with sufficient lighting and ventilation is
provided in the mill. Adequate number of sweepers is maintained in the mill for cleaning
the latrines and urinals daily.

39
Components of safety services provided in The KKP Spinning Mills Ltd, Namakkal.
❖ Appointment of safety officer
In KKP the safety officer’s functions are carried out mainly by the assistant manager in the
personnel department. The functions mainly performed are: -
✓ Analysing the causes of accidents
✓ Maintaining accidents statistics and records
✓ Purchasing safety equipment’s
❖ Elimination of hazards by doing:
✓ Job safety analyses
✓ Use of personal protective equipment’s
✓ Safeguarding machinery.
✓ Good lay outing and designing
Periodical safety audit is done by preparing checklist of the points to be covered and an inspection
program is planned with them at regular intervals. Random spot check is done in each area or
department.

3.3 FINANCE DEPARTMENT

Finance department is headed by Finance Manager and assisted by senior officer, cashier
and assistant manager. Finance department in KKP is fully computerized and all payments are
made through computer computations. All the purchasing/ quotation works are handled online.
In KKP the marketing of yarn is done through Depot Marketing i.e. yarn produced in this
mill is sold in the Mumbai market. Since, due to financial constraints the organizations not able to
do direct marketing.
All the transactions are carried out with the help of agents placed in Mumbai. All these
transactions are controlled by finance department. There are so many subsections in finance
department like establishment section, book section, cash& bank section, price storage ledger
section.

40
STRUCTUE OF FINANCE DEPARTEMNT

Finance Manager

Accountant

Cashier

Various sub departments of finance department are:

• Establishment section
All the employee payments like monthly payroll payments, medical, ESI, PF,
compensation, night allowances etc. are done through this section head.

• Book section
This section is headed by finance manager supported by accounts officer. The main job of
this section is keeping of books of all sections. All payment receipts are recorded in this section.
Preparation of general ledger, sub ledger, trial balance, profit & loss accounts etc.
are the main jobs of book section.

• Cash & bank section

This department is headed by Accounts Officer and assisted by Cashier. Daily cash book
is prepared and all cash balance has to be tallied with cash book. All bank payments and receipts
are incorporated through this section.

• Price stores ledger

This section is headed by Manager and assisted by Accountants. The main responsibility
vested in payment of suppliers. After getting instructions from materials department they have to
verify the bills along with the purchase order. They will pay only the supplier the right amount.

41
The important duties of the finance department are as follows:
✓ Preparations of Balance Sheet, Trading and Profit and Loss Accounts.
✓ Verification of Vouchers
✓ Giving Salary and Wages.
✓ Preparation of various books and accounts.
✓ Verification of cash balance.

INFORMATION PROVIDED BY THE FINANCE DEPARTMENT

➢ P&L accounts
➢ Balance sheet
➢ Statement of sales, production, capacity and utilization
➢ Cash flow statement
➢ Analysis of variance
➢ Statements regarding raw materials and process chemical variances.

ROLE WITHIN FINANCE DEPARTMENT

❖ Financial control

Financial control refers to the systems implemented in place to trace the directed resources
of an organization with timely monitoring and measurement. These controls majorly track the
accuracy of reporting which eliminates fraud, thereby protecting an organization's physical and
intangible resources.
❖ Business planning

Effective business planning can be the key to your success. A business plan can help your
secure finance, prioritize your efforts and evaluate opportunities.
❖ Risk management

The forecasting and evaluation of financial risks together with the identification of
procedures to avoid or minimize their impact.

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 ❖ Statutory management

When a company is placed under statutory management it means that the regulator takes
over its core functions, managerial and operational. The management of the company is locked
out of running the company for the period under which it is under statutory management.

❖ Tax management
Tax management is a vital component of smart financial planning.

❖ Treasury management
Treasury management is the creation and governance of policies and procedures that
ensure the company manages financial risk successfully. Because a primary function of treasury
management is to establish levels for cash or cash equivalents so that a company can meet its
financial obligations on time, treasury management is sometimes simply referred to as cash
management.

❖ Investment management
Investment management requires finding ways to maximize company value by managing
long-term tangible and intangible assets to be more reliable, efficient, or cheaper -- including
evaluating asset financing options, accounting methods, productions operation management, and
maintenance schedules.

❖ Benefits management

Benefits management is the identification, definition, planning, tracking and realization

of business benefits. Delivering benefits is the primary reason why organizations undertake
change. A benefit is a positive and measurable impact of change. Financial associate’s takes
actions or they consider complex matters, information, and processes which are in terms of
monetary terms and act on it quickly with a sound judgment.

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3.4 MARKETING DEPARTMENT
WTO, which came into existence from 1st January 1995, regulates the world trade by a
number of agreements signed by the member countries. ATC (Agreement on Textile &Clothing)
is one of the 29th agreements attended to WTO.

Disorganized industry particularly weaving, chemical processing, inadequate technology up

gradation, insufficient market intelligence, large inter unit difference in productivity etc. are some
of the issues which KKP has to address in the coming era. Marketing is a social process by which
individuals and groups obtain what they need and want through creating, offering and freely
exchanging product and services of value with others.

Marketing has often been described as the art of selling products, but most important part
of marketing is not selling, the aim of marketing is to know and understand the customers so well
that the product or service fit him and sells itself. Ideally, marketing should result in a customer
who is ready to buy. All that should be needed then is to make the product or services available.

MARKETING ACTIVITY
Cotton, which is the raw material, is purchased from various states in India such as Punjab,
Maharashtra and Tamil Nadu. It is mainly done by inviting quotation through online. The cotton
which is purchased from these states is processed to convert it as yarn fiber. Yarn produced here
in this mill is transported to the market located in Mumbai.

The target market of KKP is the Mumbai market from where it is purchased by
businessman concentrated on textile sector. In order to avoid the warehousing and storage in
Mumbai, these products are transferred to agents present in Mumbai. Thus, the yarn produced in
KKP is marketed mainly through depot Marketing.

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DEPARTMENTAL STRUCTURE OF MARKETING

Marketing Manager

Assistant Manager

Dealers

Agents

ENVIRONMENTAL ANALYSIS
KKP Spinning Mills Ltd which is registered as a private limited company in the
cooperative sector is influenced by political, social, economic and technological environment.
Social welfare stands as the main goal of the firm. With the firm facing stiff competition from
outside our country, improvement and standardization of the products and technology determines
its profit. Standardization in all its activities including better and improved depends much on the
interest of public and Government. Lack of government initiatives acts as a hindrance to the growth
of KKP.
Considering the social factors influencing the firm and its marketing activities, KKP
Spinning Mills functioning under the private sector is working for the society, for the improvement
of condition of living of the people. Thus, any advancement in the environment which negatively
affects the people working there is least welcomed.

MARKETING INFORMATIONM SYSTEM

Agents placed outside our states are the main source of marketing information for KKP
Spinning Mills. Since no MRP can be fixed on the fiber yarn produced in KKP, the changes in the
market price and the condition are known through the agents. Since cotton cannot have demand

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every time, the seasonal changes are made known in advance to the firm by the agents. Other than
this marketing research done by SITRA personnel also provides marketing opportunities of the
products produced in KKP.

PRICING STRATEGY
One of the most important factors relating to the fiber yarn is that no fixed MRP can be
printed on the fiber yarn. Thus, the firm is forced to sell the product at the market price of fiber
yarn. Having known the changes that can happen in the market well in advance the firm is able to
stock raw materials to be used in favorable condition and thus maintains its profit.

PROMOTIONAL ACTIVITIES
SITRA is the body which is engaged in promoting the product made by the firms under it.
Some of their promotional activities include:
✓ Advertising in Government publications.
✓ Awareness program throughout South India about the importance of combed yarn (high
quality) produced under it.

3.5 QUALITY DEPARTMENT

Quality management is the act of screening the defectives before they reach the customers.
In KKP, quality management is carried out with the help of South Indian Textile Research
Association (SITRA), Coimbatore. The ultimate quality of yarn is based on the raw material i.e.
quality of cotton used.
The basic problem in KKP is the manufacture of a standard product from an essentially
non-standard and highly variable raw material. The quality of yarn should conform to certain
accepted norms depending on the end use. It is equally important that this is achieved at the
minimum cost possible. In KKP the Spinning Master looks after the quality aspects along with
two assistants in laboratory testing and in collecting data from various departments.
The quality management in KKP is done as a cycle taking place in the production
department. Scientific sampling, design of experiments, the analysis, the presentation and
interpretation of data through statistical techniques etc. creates the cycle taking place during the
process of quality management.

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The communication pattern is followed in KKP with regard to quality management is as follows
DEPARTMENTAL STUCTURE OF QUALITY MANAGEMENT

Quality Manager

Quality Assurance
Department

Quality Assurance
Department in charge

QUALITY SYSTEM STANDARD

A spinning mill where yarn is being produced as per the customer’s requirement
implemented ISO 9000 & ISO 9003 models. ISO 9003 Model is more appropriate for mills
producing special yarns and fabrics for industrial applications where the fabric has to be engineer
to meet very strong requirements. In KKP Spinning Mills Ltd, both these ISO 9000 standards are
being applied with respect to the production of yarn.
ISO 9002
These standards are applicable for industries where the specified requirements for
products or services are stated in terms of established design parameters. Thus, KKP which is
involved in the manufacturing process of yarns, fabrics etc., as per the customers’
requirements follow these standards.

ISO 9003
These standards specify quality system requirement for situations which require
demonstration of suppliers’ capability to detect and control the disposition of raw material testing
the samples, grading them as per the properties and selling them to the customers. All these
processes are done according to ISO 9003. The quality management system implemented in KKP
Spinning Mills Ltd, Namakkal is Total Quality Management (TQM). Basically, TQM is the
process of achieving agreed customer requirements at the lowest effective cost by bringing out the
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talents for all the employees. TQM stands for management approach of an organization, centered
on quality based on the participation of all its member and aimed at long term success through
customer satisfaction and benefits to all members of the organization and to society the quality
Management under TQM involves several steps. These steps are being implemented in KKP as
management system. They can be schematically showed as:

❖ ACQURING ISO 9000 CERTIFICATION

This is the first step to be followed in a textile mill for implementation of TQM.
KKP developed its own procedures and methods as per the capability of its organizational
set up in acquiring ISO9000 certification. After acquiringISO9000 certification ACSM has
been required to maintain document. This mill is audited by authorized certifying bodies
for the proper implementation of ISO9000 guidelines. On satisfactory completion of the
guidelines, the KKP Namakkal has been awarded ISO9000 Certification.

❖ BUSINESS PROCESS BENCHMARKING

Benchmarking refers to the continuous process of measuring the firm’s products,
services and practices against the toughest competitor in the organization. Benchmarking
is done for the process or for the profitability of the organization. In KKP Spinning Mills
Ltd, Namakkal, the items that are bench marked are: -
✓ Labour productivity
✓ Production/ spindles/ shifts(40s)
✓ Spindle utilization (%)
The process of benchmarking is done for various product characteristics like unevenness,
imperfection etc. it is implemented in KKP to: -
❖ Develop or fix performance target to various levels
❖ Encourage and strive for excellence
❖ Create a better understanding of the industry and technology.

BUSINESS PROCESS RE-ENGINEERING

Once the benchmark and the process are understood it is necessary to reengineer system so
that a better product is produced. The process of re-engineering includes changes in technology,

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 attitudes, measures, measuring system, record maintenance, corrective& preventive actions and
work methods. It is being implemented in KKP to: -
✓ Reduce the cost of production
✓ Improve quality
✓ Improve morale

RE-ENGINEERING CYCLE

Production for
Development

Evaluation of
System Reengineering
Procedure

Competitive
Comparison Implementation

Results

IMPROVEMENT TEAM
It is defined as small group of employees in the same work area doing similar type of
work, who voluntarily meet regularly to identify analyses and resolve work related problem.

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SYESTEMS & MAINTENANCE
Today computers are being increasingly used all over the world to control the various activities
in business/ industrial enterprises with main objectives of: -
✓ Cost control
✓ Efficient Time Management.
In KKP the computer is used in connection with the activity of maintaining the machinery. The
major areas where computers can effectively be used for machinery maintenance can be showed
as: -

❖ Routine maintenance and lubrication

They are to be performed on a periodical manner at scheduled intervals(frequencies). Use
of computer will be helpful to retrieve the following information related to the maintenance
and lubrication done in this organization. They are as follows:
• Schedule of activities
• Daily/weekly work order based on schedules.
• Weekly backlog reports
• Record on breakdowns.
• Weekly/monthly consumption of stores and lubricants and the cost of material.
By retrieving weekly backlog reports, in KKP necessary changes for the subsequent weeks
could be made easily. Records on breakdown should contain elements of cost involved in
maintenance. Data flow on consumption of stores and lubricants will enable to estimate the cost
involved. These details helped more in estimating the management to compare it with the yearly/
half yearly budgets estimates.
❖ Preventive Mechanism
It is applied in KKP to:
✓ Avoid breakdown
✓ Save cost involved in maintenance functions.
✓ Meet delivery schedules of products
✓ Establish and evaluate routine maintenance system.
❖ Equipment History

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In KKP the computer is mainly used for maintaining the equipment’s or machine history. It is
maintained in the form of machine files. This information includes:
Manufacturer of the machines.

✓ Model of the machines

✓ Serial number of each machine
✓ Cost of machine
✓ Date of purchase and commissioning.
✓ Site of the machine.
✓ A brief description about the functioning of the machine.
✓ Special attachments which are attached in the machines.
✓ Major breakdown which took placed in the machines.
✓ Major replacement which are made.

For the optimum utilization of the software the various program connected with the machinery
maintenance are suitably interlinked with the help of computer in KKP in such a manner whenever
a change is affected in a particular area is related areas get altered appropriately.
❖ Machinery Audit
Computers are used to maintain information on: -
✓ Maintenance records
✓ Production records
✓ Completed checklist of preventive maintenance
✓ Follow up reports
❖ Inventory Control
Inventory is necessary to give good customer service so as to run the plant more efficiently.
Software is used in KKP for controlling inventory. This software is used to store or retrieve
information like:
✓ Part number (code number given to a group of spare parts or equipment)
✓ Supplier list
✓ Quality in stock Economic order quantity
❖ Work instruction

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 Computers are used to give work instructions to each employee in the mill. Work instructions
are prepared by the person in charge of maintenance. These work instructions are issued after
obtaining the approval from the management and they are communicated to the responsible worker
like Technical in charge. These are approved work instructions which are stored in the computer
for further rectification and providing this material for training purpose.

❖ Budgetary control
In KKP the computers are used and a tool for budget control i.e. for exercising control over
maintenance expenses incurred. They can be classified as follows: -
✓ Capital expenditure
✓ It is the expenses on purchase of machinery equipment which are to be purchased as the
technological advancement taking place or as the SITRA standards specifies.
✓ Programmed replacement
✓ It covers the expenses incurred on replacement of various machine performance and
product quality.
✓ Recurring expenditure.

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 CHAPTER -IV

4.1 SWOT ANALYSIS

A SWOT analysis (or SWOT matrix) is a structured planning method used to evaluate the
strength, weaknesses, opportunities, and threats involved in a project or in a business venture. A
SWOT analysis can be carried out for a product, place, industry or person. It involves specifying
the objective of the business venture or project and identifying the internal and external factors
that are favorable and unfavorable to achieve that objective. Some authors credit SWOT to Albert
Humphrey, who led a convention at the Stanford research institute (now SRI International) in the
1960s and1970s using data from fortune 500 companies. However, Humphrey himself does not
claim the creation of SWOT, and the origins remain obscure. The degree to which the internal
environment of the firm matches with the external environment is expressed by the concept of
strategic fit.
✓ Strength: characteristics of the business or project that give it an advantage over others.
✓ Weaknesses: characteristics that place the business or project at a disadvantage relative to
others.
✓ Opportunities: elements that the project could exploit to its advantage.
✓ Threat: elements in the environment that could cause trouble for the business or project.
In SWOT Analysis the strength, weakness, opportunities and threats of KKP Spinning Mills ltd,
Namakkal is analyzed and noticed.

STRENGTH: -
✓ They have only few competitors.
✓ Leaders are available around the clock in case of plant emergencies.
✓ Most of the non-core areas are outsourced for canteen, excellent housekeeping practices,
restrooms etc.
✓ Attendance time punching by all employees including head of the mill.
✓ Technical document for all technical policies.
✓ Follows the standards laid down by SITRA Coimbatore.

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 ✓ KKP has skilled work force, educated staff and professional qualified managers in good
numbers.
✓ Provide financial support to their employees.
✓ Provide better incentives and other benefits to employees such as leave, Lww, C/off, and
ESI benefits.
✓ The company also uses better waste disposal methods according to Government Norms.
✓ Strategic location with no other competitors around at present.
✓ The company has not faced any strike for past few years because of excellent management
of labour.
✓ The company also maintains an Agro-Garden in their compound.
✓ KKP has excellent infrastructure facilities including National Highway, Rail line which is
near to the company.
✓ KKP has excellent labour relationship.

WEAKNESS: -
✓ Mill is highly dependent on the availability of cotton as raw material from other states in
India.
✓ The main customer of ACSM is Mumbai businessman who deals with the textile sector.
✓ There is no fixed MRP like every other product.
✓ Transportation charge blocks it proper functioning.
✓ Most of the employees are at the age of 50, so the rate of absenteeism increased due to
health issues.
✓ The company also follows a strict time system.
✓ No flexibility in the organization because ACSM is a public sector undertaking and the
major
✓ decisions of the company have to be approved by the Government which
delay the implementation of plan.

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OPPORTUNITIES: -
✓ Prosperity of the industry in both domestic and export front.
✓ Huge potential of internal demand driven by improvement in standard of living, increase
in population, large cotton resources, ready availability of skilled labour and competent
technical manpower.
✓ The decision of government to start working up of 6000 spindles only at first stage
Financial assistance provided by TEXFED.
✓ Most advanced automatic power loom

THREATS
✓ The main threat of KKP is its competitors especially from China and Sri Lanka.
✓ Trade liberalization.
✓ Decline in cotton yarn export.
✓ Lack of modernization
✓ Non availability of credit
✓ Low productivity
✓ Increase in cost of production.
✓ Labour shortage due to pay scale provided to them.
✓ Cost of electricity is very high.
✓ The import duty of the government is not favourable; it causes fluctuations in the price of
the product of KKP.

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 CHAPTER – V

CONCULSION
In this internship an attempt was made to study about the organization, the various
departments in the organization and to secure practical knowledge regarding HR functions,
financial activities, production process, the marketing process etc. involved in KKP Spinning Mills
Ltd, Namakkal. While doing this study, it came to know the fact that the textile & clothing industry
is the single most export earner around 20% of the gross exports earning for India. Our country
holds second position in the world market in the field of yarn production. But the condition of
Textile Industry is getting declining day by day especially in South India. It is mainly due to the
non-availability of credit and lack of modernization in the field of yarn production. These are not
only the reasons behind this declining stage but it is mainly due to uncertain risk behind the raw
material, i.e., cotton It is very hard to get cotton. In KKP cotton is being transported from Andhra
Pradesh, Maharashtra and Punjab which led to the high production cost resulting from
transportation cost.

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