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KARNATAKA SILK INDUSTRIES CORPORATION, MYSORE

1. INTRODUCTION
TITLE OF THE STUDY This study is titled as AN ORGANIZATIONAL STUDY AT KSIC (KARNATAKA SILK INDUSTRY CORPORATION) MYSORE. 1.1. OBJECTIVES TO STUDY: PRIMARY OBJECTIVE y To know the working of the different departments in the organization.

SECONDARY OBJECTIVE y y y To put theoretical knowledge into practical experience. To know the growth and present statues of KSIC. To know the strength and weakness of KSIC Ltd.

1.2. SCOPE OF THE STUDY A well organized effectively formed organization forms the base stone of every successful business. The project study on organization provides an excellent opportunity for experiencing and understanding the organization. This also enables the student to find out the correlation between the theory and real business. The project helps in developing the internal abilities and interpersonal skills and thereby encourages the capabilities of the student. The study helps to find out the working of different. 1.3. METHODOLOGY SOURCES OF DATA COLLECTION 1. Primary Data Primary data were acquired mainly through direct observation of various functions in the organization and through interaction and communication through unstructured interviews with the concerned department heads and officials of the organization.

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2. Secondary Data. y y y Manuals Past records Website

Information is collected to know the organization structure and its working and SWOT analysis has been done. 1.4. LIMITATIONS OF THE STUDY:  The study was restricted only for 12 days. Due to time constraint an in depth study of all the departments was not possible.  In the study only the general organization study has selected.  Since the managers were busy with their work schedules it was not possible to spend more time with them for discussion.

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INDUSTRY PROFILE
It is said that silk was discovered during 2640 B.C. in China. Chinese Empress, Ling Shi studied the silkworm and learnt the art of unwinding the silk from the cocoon and made silk fabric from it. This was the beginning of the silk industry in China. Though India is the second largest silk producer in the World after China, it accounts for just 5% of the global silk market, since the bulk of Indian silk thread and silk cloth are consumed domestically. Germany is the largest consumer of Indian silk. The sericulture industry is land based as silk worm rearing involves over 700,000 farm families and is concentrated in the three southern states of Karnataka, Tamil Nadu and Andhra Pradesh. The present market context for silk in India is one of vigorously growing internal demand for silk fabrics, with growth rates of above 10% per year. It is mostly for traditional (sari type) design and does not impose sophisticated quality requirements upon the industry. This situation is likely to continue, unless Indian sericulture is able to provide sufficient quantities of raw silk at affordable prices. The present trends represent a limitation to price increases for silk produced in India Other silk producing countries are China, Brazil, Korea etc. it also appears unlikely that the present demands can be met merely by expanding mulberry area in order to increase cocoon and raw silk production. Future additional output is raw silk will therefore mostly have to come from substantial productivity increases, mainly area and labour productivity. Currently there is a growing demand for silk fabric among the growing Indian middle class and young urban consumers. These modern silk fabrics typically are produced by the expanding power loom weaving industry. The quality requirements imposed by this trend can only be met by bivoltine raw silk for conventional power looms. The bulk of todays world export demand is almost exclusively based on high graded quality bivoltine raw silk. If Indian sericulture is unable to generate a substantial production of bivoltine raw silk, these important market segments will continue to be lost outside competitors.

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The three main market segments offer great opportunity to Indias silk industry: i. ii. The broadening domestic traditional demand multi bivoltine based. The domestic demand for non traditional silk fabrics, based at least partly on nongraded bivoltine. iii. The vast and expanding international market for raw silk, silk fabrics and readymade, based on graded bivoltine silk, an export potential as yet relatively little exploited by India. In one of the efforts of the Indian Government to promote the sericulture Industry, the National Sericulture Project (NSP) was initiated as a national project operational in 17 states in India. The projected funded by the Central and the State Governments together with an input of foreign funds, has a credit portion from the world bank and a grant contribution from Swiss Development Corporation. The project was started in 1989 for a period of six years with the objectives oriented toward increased production, improved productivity, quality and equity. One of the critical elements taken into consideration by the project was the dominant involvement Of the Central and State Government Organizations in the promotion of sericulture. GLOBAL SCENARIO The history of development in World Textile industry was started in Britain as the spinning and weaving machines were invented in that country. High production of wool, cotton and silk over the world has boosted the industry in recent years. Though the industry was started in UK, still in 19th Century the textile production passed to Europe and North America after mechanization process in those areas. From time to time Japan, China and India took part in industrializing their economies and concentrated more in that sector. Japan, India, Hong Kong and China became leading producers due to their cheap labour supply, which is an important factor for the industry.

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Global Textile Scenario According to statistics, the global textile market possesses a worth of more than $400 billion presently. In a more globalize environment, the industry has faced high competition as well as opportunities. It is predicted that Global textile production will grow by 25 percent between 2002 and 2010 and Asian region will largely contribute in this regard. WTO In Textile Industry The (WTO) has taken so many steps for uplifting this sector. In the year 1995, WTO had renewed its MFA and adopted Agreement on Textiles and Clothing (ATC), which states that all quotas on textile and clothing will be removed among WTO member countries. However the level of exports in textiles from developing countries is increasing even if in the presence of high tariffs and quantitative restrictions by economically developed countries. Moreover the role of multifunctional textiles, eco-textiles, e-textiles and customized textiles are considered as the future of textile industry. INDIAN SCENARIO India is now a fast emerging market inching to reach half a billion middle income population by 2030. All these factors are good for the Indian textile industry in a long run. Even though the global economic crisis seems to be worsening day-by-day, as long as economies are emerging and growing as those in South and South East Asia, textile industry is here to grow provided it takes competition and innovation seriously. It has been recently reported that textile exports in 2009-10 period will be equal or could be even lower than the one achieved in 2008-09. In this global financial meltdown situation, what should the Indian textile industry do? In the times of adversity, it is an immediate task for all stake holders to pause for a moment and take stock of the difficulties and chart plans for sustainability and growth of the Indian textile industry.

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Road Ahead for the Indian Textile Industry As the saying goes in the financial sector, it is not advisable to put all eggs in one basket. This is what happened somewhat in the case of the Indian textile industry. With the opening of world markets and the abolition of textile quotas since 2005, there came a negative situation as well. But, hindsight is always 20-20. Indian textile industry should have focused on all major sectors right from fiber to fashion and planned for an organized growth across the supply chain so as to compete with China and even countries such as Pakistan, Vietnam and Thailand. Instead, the industry had put majority of its stock in the spinning sector. This is clearly evident in the utilization of Technology Up gradation Fund Scheme effectively by the spinning sector. Although it is a positive outcome, in my opinion, the industry turned a blind eye on value-adding sectors such as weaving and finishing. Indian power loom sector, which enables value-addition is a highly unorganized industry and needs major up gradation. Not only India does not have world quality indigenous shuttle less looms, but also investments are not adequate to cope with the quality and quantity to cater to the export market. Technical textiles sector is still in its infancy and a tangible growth will be highly visible by 2035 when the growth in this sector will be exponential.

Indian Textile Industry has some inherent strength


y y y y y y y y y

Tradition in Textiles and long operating experience Large and growing domestic market Strong raw material base Production across entire textile value chain Stable, low-risk economy, safe for business growth Easy availability of abundant raw materials like cotton, wool, silk, jute Widely prevalent social customs Variety of distinct local culture Constructive geographic and climatic conditions

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Weakness Massive Fragmentation: A major loop-hole in Indian textile industry is its huge fragmentation in industry structure, which is led by small scale companies. Despite the government policies, which made this deformation, have been gradually removed now, but their impact will be seen for some time more. Political and Government Diversity: The reservation of production for very small companies that was imposed with an intention to help out small scale companies across the country, led substantial fragmentation that distorted the competitiveness of industry. However, most of the sectors now have been dereserved, and major entrepreneurs and corporate are putting-in huge amount of money in establishing big facilities or in expansion of their existing plants. Secondly, the foreign investment was kept out of textile and apparel production. Now, the Government has gradually eliminated these restrictions, by bringing down import duties on capital equipment, offering foreign investors to set up manufacturing facilities in India. In recent years, India has provided a global manufacturing platform to other multi-national companies that manufactures other than textile products; it can certainly provide a base for textiles and apparel companies. Despite some motivating step taken by the government, other problems still sustains like various taxes and excise imbalances due to diversification into 35 states and Union Territories. However, an outline of VAT is being implemented in place of all other tax diversifications, which will clear these imbalances once it is imposed completely. LabourLaw: In India, labour laws are still found to be relatively unfavorable to the trades, with companies having not more than ideal model to follow a 'hire and fire' policy. Even the companies have often broken their business down into small units to avoid any trouble created by labour unionization.

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In past few years, there has been movement gradually towards reforming labour laws, and it is anticipated that this movement will uphold the environment more favorable. Distant Geographic Location: There are some high-level disadvantages for India due to its geographic location. For the foreign companies, it has a global logistics disadvantage due the shipping cost is higher and also takes much more time comparing to some other manufacturing countries like Mexico, Turkey, China etc. The inbound freight traffic has been also low, which affects cost of shipping though, movement of containers are not at reasonable costs. Lack of trade Membership: India is serious lacking in trade pact memberships, which leads to restricted access to the other major markets. This issue made others to impose quota and duty, which put scissors on the sourcing quantities from India. Opportunities It is anticipated that India's textile industry is likely to do much better. Since the consumption of domestic fiber is low, the growth in domestic consumption in tandem is anticipated with GDP of 6 to 8 % and this would support the growth of the local textile market at about 6 to 7 % a year. India can also grab opportunities in the export market. The industry has the potential of attaining $34bn export earnings by the year 2010. The regulatory polices is helping out to enhance infrastructures of apparel parks, Specialized textile parks, EPZs and EOUs. The Government support has ensured fast consumption of clothing as well as of fibre. A single rate will now be prevalent throughout the country. The Indian manufacturers and suppliers are improving design skills, which include different fabrics according to different markets. Indian fashion industry and fashion designers are marking their name at international platform. Indian silk industry that is known for its fine and exclusive brocades, is also adding massive strength to the textile industry.

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The industry is being modernized via an exclusive scheme, which has set aside $5bn for investment in improvisation of machinery. International brands, such as Levis, Wal-Mart, JC Penny, Gap, Marks & Spencer and other industry giants are sourcing more and more fabrics and garments from India. Alone Wal-Mart had purchased products worth $200mn last year and plans to increase buying up to $3bn in the coming year. The clothing giant from Europe, GAP is also sourcing from India. Anticipation As a result of various initiatives taken by the government, there has been new investment of Rs.50, 000 crore in the textile industry in the last five years. Nine textile majors invested Rs.2, 600 crore and plan to invest another Rs.6, 400 crore. Further, India's cotton production increased by 57% over the last five years; and 3 million additional spindles and 30,000 shuttles-less looms were installed. Forecast till 2010 for textiles by the government along with the industry and Export Promotion Councils is to attain double the GDP, and the export is likely attaining $85bn. The industry is anticipated to generate 12mn new jobs in various sectors.

Table showing the Indias Competitiveness with Other Country

Key countries / regions

Key positives

Key negatives

China

Efficient, integrated

low

cost,

vertically Growth at the cost of profits

India, Pakistan

Vertically integrated, low cost

Lacks economies of infrastructure support

scale

and

Mexico (NAFTA), Turkey

Proximity to market, duty and quota Lack China and Indias degree of free competitiveness

ASEAN (Vietnam, Indonesia)

Cambodia, Cheap labor

No other cost or location advantage

AGOA (African) Bangladesh

countries, Quota and tariff free, cheap labor

Lacks integration and China and Indias degree of competitiveness

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Hong Kong, Korea, Taiwan

Trading hubs proximity to China

No cost advantage, currently by quotas

protected

USA and EU

Non-quota barriers likely to prove US$ 400 bn trade loss likely irritant to imports

Source - Industry, I-SEC Research

KEY PLAYERS IN THE INDUSTRY 1. Kalyan Silk 2. Chennai Silk 3. Seemati Silks 4. Kanchipuram silk PEST ANALYSIS In order to analyze the environmental aspects of KSIC, PEST analysis will be used. PEST Stands for Political, Economic, Social and Technological factors that influence overall performance in the market place. Political Factor A company will not be able to gain success, good reputation and trust if it will not consider legal and political sector as part of their strategy. KSIC has been able to follow the principles of business ethics. Hence, the company considers legality in all their actions. They make sure that all their products and services adhere to the standards and wills satisfy their client worldwide. Politically, KSIC had been able to follow all the standards set by the country and other international organization satisfies their customers. Economic Factor Economically, it can be said that throughout the years, KSIC had enjoyed being at the top of its competitors. The economic status of KSIC is highly remarkable that it always give its consumers the best and quality products and services in the two business divisions. In addition, the companys growth and expansion on different countries in the

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world is an obvious evidence that KSIC has been able to have a stable economic capacity to sustain and maintain its competitive position in the market place. Social Factor Culture is an important factor in understanding an industry, because for any organization to operate effectively, it must for some extent have a general set of believe and assumptions on how culture will influence the productivity and the success or failure of any company. Culture environment is one of the important principles that influence the organization. Hofstede (1991) identifies that there are four dimensions that differentiate cultures at a national level (power distance, individualism-collectivism, masculinityfemininity, uncertainty avoidance), which help to understand that people arrive to organizations with their own national culture. In the KSIC, the management sees to it that they value the opinion of their employees no matter what is their culture. It cannot be denied that they need employees from different cultures to be in the company to help in the decision making. Moreover, the management of the company has seen to it that they would be fair in treating all their employees. In addition, as mentioned earlier, the company sees to it that their social commitment is being achieved by satisfying the consumers with their quality products and service. Herein, the company values the consumer by knowing their demands and providing their demands and in material products. Technological Factor The complexities of achieving business success through increased efficiency, effectiveness and competitiveness, combined with innovative applications of modern technology. They also use the purpose of information technology by creating their own website to let their consumers have an easy access of knowing the company and the products and services that the company has made for them.

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POTERS 5 FORCES ANALYSIS The most influential analytical model for assessing the nature of competition in an industry is Michael Porter's Five Forces Model, which is described below: Porter explains that there are five forces that determine industry attractiveness and long-run industry profitability. These five "competitive forces" are: 1. 2. 3. 4. 5. The threat of entry of new competitors (new entrants) The threat of substitutes The bargaining power of buyers The bargaining power of suppliers The degree of rivalry between existing competitors

THREAT OF NEW ENTRANTS:  New entrants to an industry can raise the level of competition, which may cause in reducing its attractiveness. The threat of new entrants largely depends on the barriers to entry. In textile industry it is not easy to enter because of need of heavy investment.  For new entrant it very big challenge for them to establish business because it require huge amount of capital and investment and man power.

THREAT OF SUBSTITUTES:  At present there are no substitutes to textile and there will be substitute for at least the next ten years. Hence the company need not worry about the threat posed by substitutes.

BARGAINING POWER OF BUYERS: Buyers are the people who create demand in an industry. The bargaining power of buyers in an industry is greater when:  There are few dominant buyers and many sellers in the industry but in textile industry buyer are more and sellers are few and there is huge government intervention and no bargaining power of buyers lies.

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INTENSITY OF RIVALRY: The intensity of rivalry between competitors in an industry will depend on:  The structure of competition In textile industry there are few equal size small and large competitors so, rivalry is there but not more intense.  Degree of differentiation In textile industry there is less product differentiation, and since this sector has huge government intervention so intensity of rivalry is less.  Strategic objectives In textile industry competitors are not pursuing aggressive growth strategies, Price rise in textile related products have lessened the burdens on industries. Few of the companies are making windfall gains rivalry is not more intense.

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2. COMPANY PROFILE
HISTORY
The silk weaving factory in Mysore, presently owned by KSIC, was established in the year 1912 by the Maharaja of Mysore province. Initially the silk fabrics were manufactured and supplied to meet the requirements of the royal family and ornamental fabrics to their armed forces.

The unit was started with 10 looms and gradually increased to 44 looms over a period. The looms and preparatory machines were imported from Switzerland and was the first of its kind in India. After India gained Independence the Mysore state Sericulture department took control of the silk weaving factory.

KSIC Ltd was established on 18 April 1980 with assistance by Government and World Bank scheme under integrated Karnataka sericulture project. KSIC is the only organisation in the country comprising the entire gamut of silk production right from the reeling of cocoons to the weaving of pure silk fabrics.

In 1980 the silk weaving factory was handed over to Karnataka Silk Industries Corporation Ltd., a of Karnataka enterprises and is popularly known as KSIC. The takeover was enthused by effecting modernization and expansion assisted by the World Bank to the tune of Rs. 27.30 crores integrated under Karnataka sericulture project. Mysore is rich for its Royal heritage and Grandeur and it is no surprise that the silk produced there reflect the traditional splendor through its rich yet delicate motifs. The name Mysore silk is a befitting tribute to its ancestry. KSIC the proud inheritor of this royal legacy, has treasured it for over seven decades, has been producing 100% pure silk with pure gold zari. We are in the business of manufacturing quality silk products of varied designs for end user consumption. The products include finest of designer silk sarees, salwar kameez, shirts, kurtas, silk dhoti and mens tie. The silk products are manufactured in our factory located in Mysore district of Karnataka state.

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The silk weaving factory in Mysore, presently owned by KSIC, was established in the year 1912 by the Maharaja of Mysore province. Initially the silk fabrics were manufactured and supplied to meet the requirements of the royal family and ornamental fabrics to their armed forces

COMPANY VISION AND MISSION


VISION: To be the market leader in manufacturing silk sarees and to provide employment directly and indirectly. MISSION: Manufacturing and marketing of Mysore silk sarees. OBJECTIVE 1. To generate quality fabrics. 2. To generate employment.

SWOT ANALYSIS:
STRENGTHS: 1. KSIC is a public limited company. 2. KSIC obtained the certificate of geographical indication for Mysore silk, elevating it to a brand name for an exclusive use. 3. KSIC uses only high quality pure silk and zari. 4. KSIC have a patent right of Mysore silk brand. 5. The KSIC will also be coding every saree.

6. The code will contain the name of weaver and date of weaving. In case of complaints, the weaver can be traced immediately.

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WEAKNESS: 1. There are many highly competitive companies in the market. 2. More than 45 dealers in Bangalore were misusing the name of Mysore silks. 3. Other silk products are sold in the name of Mysore silks. 4. Limited production of sarees. OPPORTUNITIES: 1. Exports the silk products to other countries. 2. Providing employment opportunity for rural people. 3. Employees will get PF, ESI, minimum bonus and gratuity benefits. 4. Giving apprenticeship training for workers. THREATS: 1. KSIC found that more than 45 dealers in Bangalore were misusing the name of Mysore silk. 2. Rise in cost of silk. 3. Rise in cost of production.

GROWTH AND DEVELOPMENT


The Karnataka Silk Industries Corporation (KSIC) has been awarded the certificate of Geographical Indication for Mysore Silk, elevating it to a brand name for its exclusive use. Its now official; Mysore Silk belongs to Mysore district. The Karnataka Silk Industries Corporation (KSIC) has been awarded the certificate of Geographical Indication for Mysore Silk, elevating it to a brand name for its exclusive use. Henceforth, all Mysore Silk sarees sold by the KSIC will come with the logo IPI, meaning Intellectual property India. KSIC is also the first state government enterprise to get a logo from the Geographical Indication Registry (GIR), a Central government body based in Chennai. GIR was formed to protect the Intellectual Property Rights for Indian goods under the Geographical Indication of Goods (Registration and Protection) Act, 1999.

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The GIR Certificate is a sign used on goods that have a special geographical origin and possess qualities or reputation of their place of origin. The KSIC also will have the patent rights of Mysore Silk brand and no other organization can use the same name for other silk products. The other products which have been awarded GIR Certificate include Kanjeevaram sarees, Basmati Rice, Swiss watches and Dutch Tulips. PRESENT STATUS OF THE INDUSTRY KSIC produces 6,000 sarees every year and, armed with the GIR Certificate, KSIC now plans to have a distributor in every state. EXCLUSIVE STATUS Manufacturers or traders can use the word Mysore Silk to market their silk fabric without KSICs nod product must be made in Mysore district penal action for unauthorized use. Every Mysore silk saree will carry a logo- Intellectual Property India. The two pillars of Korean manufacturing sector are textile industries (KSIC code 32) and machinery, equipment and electronics industries (KSIC code 38). The output share of textile has decreased from 21.8% in 1970 to 13.7% in 1990 while that of machinery and equipment has increased from 12.2% to 34.1%.

PRODUCTS
KSIC is the only organization in the country commending the entire gamut of silk production right from reeling of cocoons to the weaving of pure silk fabric of various shades and designs, all under one roof. KSIC uses only high quality pure natural silk and 100% pure gold zari. The zari never tornish and will look fresh even over a long period of usage. KSIC is the only organisation to give guarantee for its zari saree in the form of embroidered code No. which is unique to each saree.

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3. ORGANISATION DESIGN ORGANISATION STRUCTURE OF KSIC, MYSORE

MANAGING DIRECTOR

GENERAL MANAGER [PERSONNEL]

HEAD OF MARKETING & OPERATIONS

UNIT HEAD, SWF, MYSORE

HEAD OF FINANCE AND ACCOUNTS

HEAD OF INTERNAL AUDIT

MANAGER SALES

PRODUCTION MANAGER

SHOW ROOMS

HEAD OF PURCHASE & STORE

``````````

IN-CHARGE MAINTENANACE

HEAD OF PERSONNEL

HEAD OF ACCOUNTS

FMG

SHOW ROOMS

SECTION HEAD - THROWING

SECTION HEAD - WEAVING

SECTION HEAD - DYEING

SECTION HEAD PRINTING

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4. FUNCTIONAL DEPARTMENTS:
4.1. PERSONNEL DEPARTMENT
Personnel management is concerned with people at work and its aim is to develop good relationship between management and employee. Personnel management is that part of total management of an organization, which specially deals with human resources in respect of

a) Their procurement. b) Their development. c) Their motivation, towards the attainment of organizational objectives.

PERSONNEL DEPARTMENT IN KSIC LTD Personnel department in KSIC Ltd. is a very important and clearly defined department. The department performs the personnel and administrative functions. It has a direct link with the employees and understands their needs and wants. The personnel officer is in charge of this department and under him junior Superintend, junior Assistant Steno Receptionist, Driver, Peon etc. FUNCTIONS OF PERSONNEL DEPARTMENT 1. Recruitment and selection. 2. Training. 3. Provide sound program of salary and wage administration. 4. Allowances for the employee. 5. Provide maintain safety measures. 6. Keep employment records. 7. Handle labour problems and employee disputes.

DUTIES OF PERSONNEL OFFICER 1. To arrange for appointment of personnel. 2. To arrange recruitment as identified. 3. To comply with all statutory rules relating to personnel and Administrative matter.

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4. To provide job security, job enlargement. 5. To provide sound promotion policy providing simple scope for self advancement. 6. To ensure statutory compliances of ESI, PF etc. 7. To collect analyse and present the required data for such discussion or negotiation between the board of director and the trade union. 8. To provide guidelines of the security officer for the implementation of security measures. 9. To attend labour courts and conciliations by the labour and other departments. 10. To prepare and maintain up gradation, seniority list of all the employees of the company.

MANPOWER IN THE KSIC LIMITED The total strength of the employees in KSIC Ltd is 529 Category of Employees Officers and Staff Workers No of Employees 145 394

RECRUITMENT The method by which the company recruits labour is 1. Direct recruitment. 2. Public service commission. 3. Paper advertisement.

All employees of the individual corporation and companies excluding workers are defined in the factories Act and excluding persons employed in the supervisory or managerial capacity whose basic wages (starting) excluding DA and other allowance exceeds Rs. 700 are to be recruited through PSC.

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Clerical post such as Steno- Typist, Junior Assistants, Driver, and Receptionist cum Telephone operator, Maintenance Assistants etc. are filled up by under PSC recruitments. Managerial supervisory and workers vacancies are filled up by direct recruitment. The advertisement is published in the newspapers to fill up the vacancies. The Board of Director will nominate a selection council to interview and select the direct recruitment employees. TRAINING Training means to give information or skill through instructions or practical. It is a method for increasing the knowledge and skill of the people for a specific job. Training is the art off increasing the knowledge and skills of employees for doing a particular job. The Training methods are: 1. On the job training 2. Off the job training ON THE JOB TRAINING This is a common used method for training the operative personnel. The workers are trained under the same type of conditions they have to work in future. On the job he can experience the conditions and requirements of actual work situations. OFF THE JOB TRAINING Off the job training generally consists of conferences, seminars, lectures, group discussions, case studies, programmes, instructions etc. REMUNERATION TO EMPLOYEES The minority reward paid by the management to worker or an employee for the performance of the assigned task is called wages or salary. Salary is the remuneration paid to non operative staff, salaries are paid on a monthly basis to office staff, managers, and technical advisors etc. wages is the remuneration paid to the workers involved in

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production. Work and whos output can be directly measured. Some employees are working on daily wages. WELFARE MEASURES Employees will get PF, ESI, Minimum Bonus and Gratuity benefits. BONUS FOR EMPLOYEES The word bonus denotes an incentive payment to the workers aimed at enhancing their efficiency and loyalty to their organisation. Promotion takes place when an employee moves to a higher than once formerly occupied. His responsibility, status and pay also increase; the promotions method adopted here is Seniority basis. RELATIONS BETWEEN MANAGEMENT AND UNION Most of the employees opinion is that there is a healthy relationship between the management and union. So management must take necessary steps to maintain this good relationship. So there is no problem from the part of the union.

DEPARTMENTAL CHART
PERSONNEL OFFICER

JUNIOR SUPERINTEND

JUNIOR ASSISTANT

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4.2. FINANCE DEPARTMENT

DEPARTMENTAL CHART FINANCE OFFICER

ACCOUNT GRADE

ACCOUNT GRADE- 2

CASHIER

JUNIOR ASSISTANT

Financial management is responsible for estimation of financial resources. Finance is lifeblood of every business. Therefore it is most important and complicated for business. Finance department in KSIC LTD is needed by finance manager and under him accountant, junior superintend and cashier.

FUNCTIONS OF FINANCE DEPARTMENT

 Finalization of account.  Preparation of wage sheet.  Maintain cost records.  Budget making and set target to be achieved.  Set out the financial requirements, loans, income expenditure etc.

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DUTIES OF FINANCE MANAGER 1. Keep the books of accounts of the company up-to-date. 2. To inspect the accounts of the company. 3. To monitor all the financial transaction of the company. 4. To arrange the reconciliation of the books of accounts of the company with the books of accounts of the company. REGISTERS AND BOOKS OF ACCOUNTS The manager should keep proper books of accounts, register and other documents. He should maintain proper and accurate records of accounts of working of the company. Copies of the balance sheet shall supply free on demand of any members. The books generally kept in finance department are 1. Cash book 2. General Ledger 3. Bank book 4. Sales general 5. Purchase general

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KARNATAKA SILK INDUSTRIES CORPORATION, MYSORE

4.3. PURCHASE AND SALES DEPARTMENT


In ordinary sense the term purchasing is the procurement of materialism, machinery and tools on payment. But today purchasing has acquired new dimensions and such as it may be defined as the functions of procurement with a view to reduce the investment, variety and vale of materials so as to facilitate the standardization and competitive marketability of the product. FUNCTIONS OF PURCHASE DEPARTMENT  To maintain regular flow of materials.  To purchase at a competitive price, the right quality from a right source.  To ensure higher productivity of men, machine and materials.  To ensure production of better quality of products at competitive costs. METHOD OF PURCHASING KSIC adopt centralized purchasing. It includes purchase of raw materials, stores, land and equipment. Fund, stationary, supplies, chemicals etc all bulk purchases are petty purchases are made though this department except maintenance purchase. Maintenance purchases are made by administration section. PROCEDURE IN THE PURCHASE DEPARTMENT Receiving purchase requisition: This stores office as and when purchase requisition or intends are received from the concerned department. It should be done before two or three weeks. Exploring the source of supply: The selection of right source of supply is very important from the point of view of getting the materials in the time and desired quality at a price. The different categories of suppliers are found out through advertisement, tender, etc. the quotations are compared with others and from this the best is selected. The chemicals are purchased by yearly quotations. In KSIC, two types of suppliers are found. Manufacturing suppliers and Distributors and commission agents.

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4.4. PRODUCTION DEPARTMENT


The production department is largely connected with manufacturing and its allied areas such as, determination of quality and quality to be produced, production planning, work analysis, quality control etc. production department also deals with clerical work relating to various activities of a production of a finished products, material requisition, stock records etc. production department is headed by Production Manager. PRODUCTION Production is concentrated in the existing two plants namely 1. Silk weaving and printing plant (Mysore) 2. Silk filature plant. 1. Mysore- Silk weaving and printing silk products The Factory is located in the heart of the Mysore city and is spread over acres. The raw silk yarn Filatures obtained from T. Narasipura factory and open market are put through various process and quality silk products are produced for end user consumption. The factory has an installed capacity of 8, 00,000 Mtrs per annum. The factory is provided with various high end equipments so as to produce best of silk. The factory started with 10 looms in 1930 under the rulers of erstwhile Mysore Kingdom today boasts of more than 159 looms, two warping machines & Pirn Machines and many number of preparatory machines. Most of the machines are imported from Switzerland and Japan. KSIC silk product are well appreciated in the market due to its 100% pure silk blended with 100% pure gold Zari (65% of silver &0.65% of Gold).The sarees manufactured are of unmatched quality come in varieties to the customers tastes namely Crep de Chine, Georgette, Zari printed crepe silk sarees, semi crepe sarees. The sarees are printed or dyed. The sarees come in a splash of Over 100 different colors and any numbers of designs. Some of the design combinations are:

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Emroidery design saree Big Butta Pallu saree Rich Pallu saree Jawar Border saree Small Mango saree Zari printed saree Saree tissue Saree Traditional Zari saree Checked zari saree Mango Border saree Sunrise Design saree Butta Pallu saree Double Line Checks saree.

Based on the taste of the end consumers the saree are printed and Dyed with suitable eye catching colors. Various approved quantity of approved chemicals are added at various stages as per silk manufacturing standards to retain the luster and quality of the silk fabrics. The sheen and the visual luxury of the crepes are only to be experienced. At 75 gms per meter, the KSIC silk sarees have an unmatched drape. These crepes have delicate stands of zari interwoven in spectacular designs, in borders and pallu. The printed crepes are tributes to designing and come with a double advantage of possessing the crepes softness and a vibrant range of designs from floral to geometric. To protect esteemed customers imitation of KSIC silks, KSIC have given a special embroidered number for each one of the sarees with unique number and hologram. Other products of silk include soft silks, hankys, Neck ties, Stoles, Cravats, dupion fabrics etc.

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KARNATAKA SILK INDUSTRIES CORPORATION, MYSORE

2. T. Narasipura- Silk filature Silk Filature refers to raw silk manufacturing unit. The unit manufactures raw silk yarn and transfer to meet the raw material requirement of silk weaving factory in Mysore. The factory is located in T. Narasipura, Mysore district in an area of approximately 15 acres. The factory is headed by a General Manager. The factory supplies raw silk yarn to their own silk weaving factory located in Mysore. Approximately 1000 Kgs. Of cocoons are purchased daily from government controlled market depending on needs and raw silk yarn known as filatures are produced. The purchase is done on almost daily basis as the purchased cocoon cannot be stored for than 2 to 3 days. CAPACITY Installed capacity Actual production : 225kgs/day 120kgs/day

The factor uses the best technology per say in raw silk manufacturing. It follows the international silk association standards and has the following stringent parameters for testing using standard machineries. a) RendittaThis refers to amount of Kgs of cocoons required to produce 1 Kg Of raw silk yarn. b) Type of CocoonMultivoltaine Coccon Bi-Voltaine Cocoon Grade of Raw silk yarn Grade A, Grade 2A, Grade 3A, Grade 4A, and Grade 5A. : 8 to 8.5 Renditta : 6.5 to 7 Renditta

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KARNATAKA SILK INDUSTRIES CORPORATION, MYSORE

International silk association standards to set the following      Denier- weight in grams/Mtr Tenacity Elongation Cleanness Neatness The silk filature plant uses modern Japanese & Korean Machineries having denier control to produce quality silk yarn.

The unit uses two types of reeling 1) Automatic- Japanese Machinery 2) Semi Automatic- Korean Machinery The Cocoon purchased from Government control market undergoes various stages of production namely sorting, boiling, & reeling. Silk yarn is passed through buttons and pulley (Croiser) to maintain tenacity and elongation and Wound on a reel. Re-reeling is done to make the silk yarn into a continuous length and convert it into hanks. Reeled yarn is passed through yarn and made into big reel. The approximate weight of the yarn is 100 to 120 gms. To maintain quality the silk yarn undergoes various processes like silk skinning to remove gum spots manually. The unit is in the process of implementing ISO 9002 Standards. QUALITY CONTROL The company has been set up quality control sections of quality control and development. The company has continues research and development programmer a results off which, they can identify new product lines. The quality control ensures the consistent quality products.

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KARNATAKA SILK INDUSTRIES CORPORATION, MYSORE

OBJECTIVES OF QUALITY CONTROL 1. Continue improvement in operations. 2. Improvement in export turnover. 3. Consumer satisfaction. FUNCTIONS OF QUALITY CONTROL  Quality inspection Quality of silk and fabrics checked during various stages of production such as dyeing, weaving, stenciling etc, if the quality of the product is beyond the standards prescribed then it is rejected.  PRODUCT DEVELOPMENT This function includes the development of original products, modifications etc. factions are done with the tastes and preference of the customers.  DESIGNING Designing of silk products are done by both designers of international reputes and national reputes. They create new concepts and trends in the area of weaving color combinations.

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KARNATAKA SILK INDUSTRIES CORPORATION, MYSORE

4.5. MARKETING DEPARTMENT


ORGANISATION CHART FOR MARKETING DEPARTMENT

MARKETING MANAGER

ASSSSISTANT MANAGER

MARKETING OFFICER

SALES OFFICER

Marketing is the performance of business activities that direct the flow of goods and services from the producer to the customer. It is a system of interacting business activities designed to plan, promote and service to existing and potential customers. The main function of marketing is to view the customer as the very purpose of the business. It emphasizes on identification of a market opportunity and fulfilling the needs of the customers. Without marketing there is no consumer and without the customer there is no use for the product or service the company is producing. At KSIC, the marketing department acts as a guide, and lead the companys other departments in developing, producing, fulfilling and servicing products and services for their

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KARNATAKA SILK INDUSTRIES CORPORATION, MYSORE

customers. Communication is vital and the marketing department typically has a better understanding of the market and customer needs. The goals and guidelines set by the Marketing Department are in line with the vision and mission of the company. The upper management is also involved in and endorses cooperation by all departments in following and implementing the plan and integrating a consistent message into all communication channels. ELEMENTS OF MARKETING MIX 1. Product Marketing department ensures that the product is of the same grade as specified by the customers and meets the quality standards. 2. Price The prices are based on pricing policies taken by the company based on the market conditions. The pricing decisions are taken by the Marketing Department after studying the market conditions and also comparing the competitors price. 3. Promotion It deals with advertising and sales promotion for the product. Since the company goes for Industrial marketing department, mainly on electronic segment, it concentrates on direct marketing as a means of promotion which enjoys the advantage of two way communication. 4. Place In this industry the place is not that much important. The production plant is setup in Mysore. KSIC Showrooms To sell the silk fabric products produced, KSIC has its own showrooms at various places as listed below. This is to ensure that only the best and original silk Fabrics are sold. It has no dealers or any other outlets other than its own showrooms manned by KSIC staff

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KARNATAKA SILK INDUSTRIES CORPORATION, MYSORE

 Bangalore  Mysore  Chennai  Hyderabad  Kerala COMPETITORS The major competitors in India Kalyan Silk, Chennai Silk, Seemati Silks, Kanchipuram silk, etc.

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KARNATAKA SILK INDUSTRIES CORPORATION, MYSORE

5. FINDINGS, CONCLUSION AND RECOMMENDATION FINDINGS: 1. Lack of direct feedback. In this organization we can see there is no proper feedback system, so organization has to look in to that which will help the employee. 2. Control over resources. They have proper control over the resources which have been provided by government 3. Lack scheduling own work.

4. Change in technology. Organization can opt for the new technology, which will reduce in the work load from worker. 5. Lack of communication skills. Some of the workers are not educated properly, so they are not able to explain the process whats happening. 6. Slow growth of the organization. As the organization is running in profit with a slow pace, so company has to take some measures that it will achieve more the profit. 7. Large number of workers. There are huge number of workers in the organization, so it will be little difficult to understand each one problem.

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KARNATAKA SILK INDUSTRIES CORPORATION, MYSORE

RECOMMENDATIONS: 1. A qualified person must be selected by an interview. The organization should give the opportunity for the young people, so that they can explore the new things for the organization. 2. Giving proper apprenticeship training about the new technical machines to the workers. The workers should be given proper training programme and make them aware of the new technology. 3. Well co-operation between the supervisors to the workers. There should be a good relationship between the worker and supervisor, so that the work will be done smoothly. 4. 5. 6. 7. JIT Quality raw materials should be supply at a time. Good relationship between the producers to the clients/customers. Proper communication must be applied to the organization. Improving the growth of the organization like, development of technology, communication skills, quality raw materials and time management etc.

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KARNATAKA SILK INDUSTRIES CORPORATION, MYSORE

CONCLUSION: An organization study was conducted in factory of KSIC LTD, Mysore, which lasted for duration of 12 Days. The executives were highly co-operative in sharing the various functions of the concerned departments. Primary data was collected through question and answer sessions and secondary data was collected by referring to various journals, magazines and website of the company. This organization study helped me to relate theoretical knowledge with the practical scenario in the organization. The ethical values and focus on customer satisfaction of KSIC LTD was highly impressive. The salary package paid to the employees is less when compare to any other companies. It manufactures only sarees and silk products. The company should provide offers and discounts to attract customers. So this project gives enough information about the company.

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KARNATAKA SILK INDUSTRIES CORPORATION, MYSORE

BIBLIOGRAPHY

BASIC MATERIALS USED:  Annual report of KSIC, Ltd.  Profile of KSIC, Ltd. WEBSITES:  www.ksicsilk.com  www. info@ksic.com  www. google.com

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