Chapter 1

Page 1

Introduction
CHAPTER 1
INTRODUCTION
An organization is a social entity that has a collective goal and is linked to an external
environment. The organization chosen by me for summer project is Sree Kaderi Ambal Mills
[P] Limited, Sivagangai District. Reason for selecting this company is to know more about
the Structure and Functions of the organization.
The methodology adopted for the study was observation, study of records and direct
interview. Various departments were visited and data was collected about the structure and
functioning of each department. The overall structure was studied along with the functioning
of various departments such as Purchase, Production, Quality, Electrical, Stores, Personal,
Finance and Marketing.

Page 2

Chapter 2
Page 3

Industry Profile
CHAPTER 2
INDUSTRY PROFILE
Indian Textile Industry
Introduction
Indian textile industry is one of the leading textile industries in the world. Though was
predominantly an unorganized industry even a few years back, the scenario started changing
after the economic liberalization of Indian economy in 1991. The opening up of economy
gave the much- needed thrust to the Indian textile industry, which has now successfully
become one of the largest in the world. Indian textile industry largely depends up on textile
manufacturing and export. It also plays a major role in the economy of the country. India
earns about 27% of its total foreign exchange through textile export. Indian textile industry is
also the largest in the country in terms of employment generation. It not only generates jobs
in its own industry, but also opens up scopes for the other ancillary sectors.
The Textile industry in India traditionally, after agriculture is the only industry that
has generated huge employment for both skilled and unskilled labour. The textile industry
continues to be the second largest employment generating sector in India.
Our economy is largely dependent on the textile manufacturing and trade, in addition
to other major industries. About 27% of the foreign exchange earnings are on account of
export of textiles and clothing alone. Around 8% of the total excise revenue collection is
contributed by the textile industry. So much so, the textile industry accounts for as large as
21% of the total employment generated in the economy. Around 35 million people are
directly employed in the textile manufacturing activities and it is the second largest provider
after agriculture sector. Indirect employment including the manpower engaged in agricultural
based raw-material production like cotton and related trade and handling could be stated to be
around another 60 million.
Indian textile industry can be divided into several segments, some of which can be
listed as below:

Cotton textiles
Silk textiles
Page 4

Woolen textiles
Readymade garments
Hand-craft textiles
Jute and Coir

Market Size
The Indian textile industry is set for strong growth, buoyed by both rising domestic
consumption as well as export demand. Abundant availability of raw materials such as cotton,
wool, silk and jute and skilled workforce has made India a sourcing hub.
The most significant change in the Indian textile industry has been the advent of ManMade Fibres (MMF). India has successfully placed its innovative range of MMF textiles in
almost all the countries across the globe. Man-made fibre production recorded an increase of
2 per cent during the year 2012-13.
Cotton yarn production increased by about 15 per cent during March 2013 and by
about 14 per cent during the year 2012-13. Blended and 100 per cent non-cotton yarn
production increased by 10 per cent during March 2013 and production increased by 3 per
cent during the year 2012-13. Cloth production by mill sector registered a growth of 19 per
cent during year 2012- 13. Cloth production by handloom and hosiery increased by 2 per cent
and 14 per cent. The total cloth production grew by 1 per cent during March 2013 and by 4
per cent during year 2012-13.
Investments
The textiles sector has witnessed a spurt in investment during the last five years. The
industry (including dyed and printed) attracted Foreign Direct Investments (FDI) worth Rs.
5,674.45 crores (US$ 1.04 billion) during April 2000 to February 2013.
Some of the major investments in Indian textile industry are:

Swedish retailer Rusta plans to import Indian textiles and handicraft worth Rs 200
crores (US$ 36.53 million) annually over 3-4 years.

India plans to set up a textile training institute in Kaduna state, Nigeria, as per Dr.
Milan Sharma, Head, Africa Initiatives and Industry Research of IL&FS Cluster
Development Initiative Ltd.

Invista, owner of Lycra fiber brand, would give the Indian women perfect clothing
solutions in the near future. Mr Avinash Chandra, Invista's marketing head (South
Asia) said research in advanced stages is underway for ethnic leggings and shape
wear to give a sculpted look to Indian women.

Page 5

British clothing brand Superdry plans to open 20 stores in India over the next five
years, as per Mr James Holder, Founder, Superdry.

American apparel-maker, Tommy Hilfiger plans to add 500 stores in India over the
next five years as part of their expansion spree. Currently, Tommy Hilfiger operates
58 franchisee outlets and over 60 shop-in-shops in other department stores.

Government Initiatives
The Government of India has promoted a number of export promotion policies for the
textile sector. It has also allowed 100 per cent FDI in the Indian textile sector through
automatic route.
According to the Union Budget 2013-14:

Technology Upgradation Fund Scheme (TUFS) to continue in 12 th Plan with an

investment target of Rs 151,000 crores (US$ 27.58 billion).

Rs 50 crores (US$ 9.13 million) were allocated to Ministry of Textile to incentivize

setting up apparel parks within the Scheme for Integrated Textile Parks (SITP) to
house apparel manufacturing units.

A new scheme called the Integrated Processing Development Scheme will be

implemented in the 12th Plan to address the environmental concerns of the textile
industry.

Working capital and term loans at a concessional interest of 6 per cent to handloom
sector.

Scheme of Fund for Regeneration of Traditional Industries (SFURTI) extended to 800

clusters during the 12th Plan.

Road Ahead
The Indian textile industry is set for strong growth, buoyed by both strong domestic
consumption as well as export demand. The industry is expected to reach US$ 220 billion by
2020, according to the estimates by Alok Industries Ltd.
The Central Silk Board sets targets for raw silk production and encourages farmers
and private players to grow silk. To achieve these targets, alliances with the private sector,
especially major agro-based industries in pre-cocoon and post-cocoon segments have been
encouraged.
For the textile industry, the proposed hike in FDI limit in multi-brand retail will bring
in more players, thereby providing more options to consumers. It will also bring in greater

Page 6

investments along the entire value chain - from agricultural production to final manufactured
goods.
With consumerism and disposable income on the rise, the retail sector has
experienced a rapid growth in the past decade with several international players like Marks &
Spencer, Guess and Next having entered the Indian market. The organized apparel segment is
expected to grow at a Compound Annual Growth Rate (CAGR) of more than 13 per cent over
a 10 year period.

Page 7

Chapter 3
Page 8

Organizational
Profile
CHAPTER 3
ORGANIZATIONAL PROFILE
Sree Kaderi Ambal Mills [P] Limited
Sree Kaderi Ambal Mills [P] Limited, Sivagangai District was the visionary of late
Shri.A.R.Sevugan Chettiar to provide employment to the people of his native village. The
company had commenced operation in 1983 with a spindelage of 12,428 spindles, since
then they have grown from strength to strength standing at a present capacity of
55,332 spindles, 7164 doubling spindles , 5376 TFO's [Two For One Twister] and 216
Rotors.
The coexistence of modernization along with

continuous expansion has made a

significant contribution to the growth of the company. As always, a committed workforce of

over 800 people has been a pillar of strength in the mill.
The company has 4 units which are located in the same premises and the details of
each unit are given below in the table form.
Table 3.1: Unit wise details of Sree Kaderi Ambal Group of Mills
SREE KADERI
DOUBLING
AMBAL GROUP SPINDLES ROTORS
SPINDLES
OF MILLS

TFO's

YARN PRODUCTION
IN TONES/ANNUM

Unit A

28,348

7164

2200

Unit B

9,704

216

5376

700 + 500

Unit C

9,936

950

Unit D

7,344

600

Total

55,332

Page 9

Milestones
Table 3.2: Milestones of Sree Kaderi Ambal Group of Mills
YEAR
1983
1988
1990
2002
2004

INCIDENTS
Commissioned 12,428 Spindles.
Capacity expansion I with 12480 Spindles.
Commissioned 672 Rotors.
Capacity expansion II with 9936 Spindles.
Commissioned 5844 Doubling Spindles.

2005
2006

Commissioned 3456 TFO Spindles.

2007
2008

Capacity expansion by 7344 Spindles.

2011

Commissioned Savio make Polar L model Auto Conners 8 Nos. having 72 drums
each. Commissioned 1152 TFO in March 2011.

2012

Commissioned 768 TFO in Feb 2012.

Capacity Expansion III with 13144 Spindles.

Commissioned 3 Nos. Of Wind Energy Generators, each of 600 KW capacity.
Commissioned 1320 Doubling Spindles.

Products
Normal Yarns
1. Open End Category
S.NO
COMPOSITION
COUNT
1
100% Cotton
6s
2
100% Cotton
10s
3
100% Cotton
16s
4 Polyester Cotton Blend
10s
2. Ring Spun Yarn Category
6s 80s both 100% Polyester and PC blends.
All yarns can be provided in both carded and combed category.

3. Ring Doubled & TFO Yarn category

S.NO COMPOSITION
COUNT
1
100% Polyester 2/56s (Sewing Thread Undyed)
2
PC
2/60s
3
PC
2/70s
4
PC
2/76s
5
PC
2/30s
6
PC
2/50s
7
PC
2/80s
All yarns can be manufactured in whatever blend proportion the buyer requires. And
the polyster fibre required can be dull, optic white, high tenacity, etc.
Page 10

Specialty Yarns

40s PC Slub Yarn.

62 s PC High Twist Yarn (Both Carded and Combed).

50s PC combed Slub Yarn.

32s PC No Claim Yarn (Cheaper than normal 32s PC yarn).

Dope dyed polyester fibre yarns.

Siro Spun Yarns.

Depots
Mumbai Sales Depot
Sree Kaderi Ambal Mills Ltd.,
325, Madhumansion IIIrd Floor,
Kalpadevi Road ,
Mumbai.
Ph.: 022 22419191

M/s Gouri Textiles

612, Hajoori Chambers,
Zampa Bazar, Salapat Pura,
Surat, Gujarat State.
0261 3012564

Kanhaiya Texcom
Bannuram Anilkumar & Co.
Shop No.:3, Ist Floor,
110, New Cloth Market,
Municipal Shopping Centre,
Outside Raipur Gate,
Ichalkaranji 416 115.
Ahmedabad 380 002.
Ph.: 0230 2432065
Ph.: 079 22145533
Overview of Sree Kaderi Ambal Group of Mills
Name of the Company [As Registered]

Sree Kaderi Ambal Mills [P] Limited

Year of Commencement

1983

Number of Units

4 [A,B,C & D]

Managing Director

Mr.Pethaperumal S V

Nature of work

Converting cotton into yarn

Total No. of Employees

Workers : 750 ; Staff : 56

Registered Office

Sree Kaderi Ambal Mills [P] Limited,

Super B 3, Industrial Estate,
K.Pudur, Madurai 625 007.

Works

Sree Kaderi Ambal Mills [P] Limited,

Perattukkottai Village,
Shanmuganathapuram, Near Karaikudi,
Sivagangai District,
Tamil Nadu 630 314.

Page 11

Chapter 4

Page 12

Role of various
Functional
Departments
CHAPTER 4
ROLE OF VARIOUS FUNCTIONAL DEPARTMENTS
4.1. Cotton Department
Based upon the requirement, Sree Kaderi Ambal Mills [P] Limited will purchase
cotton staple wise through agents. The agents will send the sample. Then, the mill will fix the
rate per candy based upon the market rate and as per delivery schedules. Then, the sample
will go for final approval. After that, the agent will dispatch the cotton staples. After getting
approval from the Managing Director, particular lot will be issued for further processing.
4.2. Production Department
The production activities of the unit are briefly explained below:
Figure 4.1: Flow Chart of Production Activities

Page 13

Blow Room
Figure 4.2: Cotton Laying in Blow Room

In this

section,

the

mixed cotton is processed and given. The output of cotton is in laps form. In this process the
waste cotton will be removed.
Carding
Cotton is fed into the carding machine and individual fiber is separated and cleared by
the wire points in licker. Neps are removed and delivered as cylindrical rope called Sliver
and is collected in cans.
Figure 4.3: Carding Process

Page 14

Drawing
In this process, the sliver form is put into process and it will give output of one
drawing sliver. In this section, the eight drawing silvers are put into process and given an
output of one finished drawing sliver. One finished drawing sliver consists of 64 silvers.
Figure 4.4: Drawing Process

Simplex
In this section, the roving ends are converted into thick yarn and collected in one
hundred and twenty bobbins. Top rolls spinning are arranged in 480. The roving type of yarn
is converted into yarn cops form. The cops form of yarn will be collected in cops in purified
form.
Figure 4.5: Simplex Process

Winding
In this section, the yarn in cops form is processed and given final products of yarn
form and it will be collected in cones with required weight. The finished product will be
collected and issued to the packaging department.
Figure 4.6: Winding Process
Page 15

Packing
In the Packing Department, the finished goods are packed in the container boxes and
supplied to the purchaser.
4.3. Quality Control Department
The final yarn which is ready is tested for various parameters in the Quality Control
Department. In the quality control department, everything from cotton procured from the
market to final yarn are tested in every process.
1) Cotton is tested for its fibre length, uniformity, micronaire value, fibre strength,
trash content, moisture content etc.
2) In each and every process like blow room, carding, draw frame, comber, simplex,
ring frame, etc., the final product if that process for the required parameters and any
correction to be made in the process, it will be done immediately to maintain quality.
Figure 4.7: Testing Process

3) The final yarn will be tested for count, count CV% strength, strength CV%, RKM,
uniformity %, thin places, thick places, neps hairiness, TPI, elongation, classimat faults etc.
before it is delivered to the end user.
Page 16

4.4. Stores Department

Stores Department is closely connected with all other departments. Its important
function is to supply the required material to the concerned departments. The stores
department deals with machine, spare parts, oil electronic items, stationeries, packing
materials etc.
Purchase Requisition
Purchase of materials initial through purchase requisition. Purchase requisition is an
indent placed to the purchasing department for purchasing the requisition materials. Purchase
department looks better the quantity specification and the date of supply and this become the
basic for action of the purchase department.
Purchase procedure
Purchase procedure varies according to the conditions and needs of individual
undertakings. The following are the essential steps in purchasing procedures:
1.
2.
3.
4.
5.
6.

Receiving purchase indent.

Receiving quotation from suppliers.
Identifying the economic order quantity.
Placing order with the suppliers.
Follow-up and expenditure actions.
Receipts, inspection, storage and processing of reflection and discrepancies.

Sources of supply
The purchase department collects the sources of supply for various items and also
refers the list of suppliers based on their prior delivery characteristics, reliability after sales
services offered; prompt replacement of damaged, defective goods, etc, and the regular
purchase from a few preferred suppliers.
Issue of Purchase Order
After finalizing the quotation of the supplier and after the approval by the Purchase
Committee in the unit, purchase orders are all placed with the approved and selected
suppliers.
Function of Stores Department
1.
2.
3.
4.
5.

Receiving purchase indent

Stock verification
Collection of quotation
Placing orders
Orders follow-up

Maintenance of various records

Stores Inward Register
Page 17

In this register, entries are made regarding particulars of supply receipt number, date,
stores account, stores ledger folio and partys account etc.
Returnable Gate Pass Register
Entries have been made in the gate pass register which contains the details of material
sent out for repair and the like. It also contains the name of the company to which it has been
sent, description of the goods sent. If the materials sent out had been received back, then the
incoming date is entered in the register.
Store Issue Slip
The department should mention their requisition of materials in store issue slip. This
slip consists of number of quantity required and the description of articles required.
4.5. Maintenance Department
Maintenance activities like inspection for faults, oiling, cleaning, adduction, trail /
testing etc. are essential for the up keep and economic running of the equipment. With three
shifts of seven days working, the maintenance is required to be more effective. The
maintenance may be divided into cleaning, servicing, lubricating and replacement. The
cleaning and servicing must be done at the end of each shift. The oiler during this time should
take the opportunity to either grease or oil the machines. Some of the points are given below
required for a routine inspection.
Greasing of all rotating parts
Removal of waste beaker, chamber, cases and grid bars.
Cleaning of beaker chambers cases and grid bars.
The maintenance engineer shall be responsible for co-ordination and management of
engineering activities of the Plant such as:
1. Management of Electrical System, Air Washer and Air Conditioning System,
Electronic Controls etc.
2. Preventive and Predictive Maintenance
3. Proper control of spare parts and its consumption.
4. Supervising maintenance team
5. Preventing breakdowns
6. Ensuring optimum utilization and proper running of machines
7. Power saving initiatives
8. ISO 9000, ISO 14000 and other regulatory administration
9. Safety management of the plant
4.6. Computer Department
Page 18

Now a day, no organization can leave behind the use of computers. To such extent, it
has become a part of an organizations progress. Even in small organization also, computers
have replaced manual labour. The work of accounting section and almost all other sections
are reduced to a greater extent by the use of computers. It helps to reduce the cumber some
manual work in production of payroll which is most important one to a greater extent. Owing
to this, the employees are provided with their wages at correct time in a speedy manner. It
also helps storing the data.
Windows and FOXBASE environment plays an important role in Sree Kaderi Ambal
Mills [P] Limited for daily transactions.
4.7. Personnel Department
Personnel department is playing a vital role in organizing the abilities of the person
who are working in an organization to get the maximum result from them to achieve the
common goal of the organization. The department takes all those activities that are concerned
with human control relationship. It is concerned with the creation of harmonious relationship
among the employees and employers.
In Sree Kaderi Ambal Mills [P] Limited, the personnel department is headed by the
personnel officer Mr.A.Thiru Venkadam. The mill works for 24/7 in three shifts which are as
follows:
Shift 1

7 a.m. to 3 p.m.

Shift 2

3 p.m. to 11 p.m.

Shift 3

11 p.m. to 7 a.m.

Attendance is marked with blue ink for the shift 1, red ink for the shift 2 and green
ink in shift 3.
Personnel department consists of the Time Keeping Section. This section is headed by
Mr.M.Nagappan. If any labour who enters the gate for the job will drop his identity card in
the box provided for this purpose. The person responsible for time keeping will collect those
cards and mark attendance of their arrival.
Wages for labours are usually calculated based on two methods namely piece rate
method and time rate method. The wages are paid to the workers on fourth of very month
after deductions like insurance premium, festival advance etc. All the other staff members are
paid on first of every month.
4.8. Finance and Accounts Department

Page 19

The success of every organization depends upon their effective utilization of finance.
It is the backbone for the business activity. The accounts department in the mill is headed by
the senior account officer who is assisted by officers and cashier. All the accounting activities
are fully computerized in the mill.
Objectives of Finance Department
1. To acquire adequate funds required for achievement of the objectives and determine
the optimum mix of obtaining funds.
2. To ensure that the funds available to the company are used in the most profitable
manner.
3. To disperse the profit earned by the company to the best advantages of the
shareholders and the company.
Main functions of Accounts Department
Receiving of invoices
Accounts receivable
Discounting of bills with Bank
Follow up realization of bills and
All other accounting related matters
4.9. Marketing Department
Marketing is the process of communicating the value of a product or service to
customers, for the purpose of selling that product or service. It deals with identifying and
meeting human and social needs. One of the short definitions of marketing is Meeting needs
profitability.
The marketing

department is headed by a Marketing Manager. All planning and

strategy formation regarding the marketing activities of the company are devised,
implemented and promoted by this department. Marketing concept may be defined as a
customer oriented philosophy that is implemented and integrated in organization to serve
customers better than competitors and achieve specific goals. It means the philosophy, belief
or attitude of the management of the firm which guide its marketing efforts. But the modern
concept is not confined to selling only. It takes into account an interaction of several business
activities of customer need and desires.
The marketing department of Sree Kaderi Ambal Mills [P] Limited is headed by
General Manager of marketing. Marketing information are collected from various years depot
through local representative and analyzed by market department. The company having yarn
basis sales committee headed by General Manager of Marketing, GM Technical , GM of
Mills. The committee will review the marketing information and finance the product and
Page 20

price of different count of yarn. The yarn products are developed according to the demand
received from the market.
4.10. Sales Department
Sales department consists of MSP (Manager - Sales Promotion) who handles sales
promotion service and SRM (T), (Senior Regional Manager for Trading) who handles traded
products. Chief Sales Manager will provide staff assistance to divisional heads of sales
department who exercises overall supervision of field sales besides coordinating the sales
promotion activities.
Functions of Sales Department

Monitoring of Sales in the area

Monitoring of prices and terms of Kaderi Ambal Mill products with competitors

Processing credit proposals for dealers and institutions.

Processing proposals for extending special incentives / credit terms to dealers.

Committee work for appropriate cancellation of dealers

Processing proposals for special agreements / sales terms with bulk buyers

Sales force motivation through internal and external training programmes.

Processing and sending replies to audit queries at divisional level.

Monitoring over due and outstanding of credit management

Co ordination of sales promotion and market developmental activities

Supervising and controlling the sales promotional activities

Direct sales
By preparing direct invoice, the products are sold to the customers directly.
Depot sales
In depot sales, agents are appointed at different places like Tirupur, Erode, Salem,
Chennimalai, Karur and Madurai. As per the requirements of the agents, the product is sent to
the depot sales. Agents sell the products in their own name.

Page 21

Page 22

Chapter 5
Conclusion
CHAPTER 5
CONCLUSION
This summer project training was very useful to acquire knowledge from various
departments of Sree Kaderi Ambal Mills [P] Limited. The training was useful to learn various
management skills and and how to organize the team for success. This company is improving
their quality, goodwill, market value and they are giving job opportunity to so many people.
They are the strength of the companys growth. In the short span of summer project, the
company management provided me a good exposure to the working set up in detail.
The training has given a deep sense of understanding as to how an organization takes
efforts in producing a product as an effective one and how it can be good in competing with
its competitors.

Page 23

Page 24

References
REFERENCES
www.kaderiambalmills.com
www.ibef.org/industry/textiles.aspx
www.textileindia.com
www.textileindustry.com
Annual reports of the Company
Reports and manuals of various departments of the company

Page 25