Organizational Study at Kerala State Coir Corporation Ltd

CHAPTER – 1

INTRODUCTION

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1.1INTRODUCTION

The coir industry is one of the most traditional cottage industries in India. The word 'Coir'
seems to have been introduced into the European literature by "MARCOPOLO" the Italian
traveler in the twentieth century. Coir Ropes and Coconut fiber have been in use since ancient
times. The history of coir industry is as old as 200 years. To be more precise coir went into
the commercial way in the year 1859-60, when an Irish born American started the first Coir
factory in Alappuzha, Kerala.

The coir industry forms major segment of village and small industries sector in terms of
production and employment. The spectrum of industries in India extends from the organized
large and medium industries, small scale industries to new industrial ventures and
unorganized traditional industries. The coir industry is very important in the national context
because of the large volume of employment that it provides in rural area to the economically
weaker section of the population.

The coir industry in India has its origin in Kerala, which is recognized as the home of Indian
Coir industry where the raw material is abundant. The last three decades however witnessed
rapid growth of the industry in states such as Tamil Nadu.

The history of Coir in India started with the association of Kerala state which dates back to
the 19th Century. Between the Western Ghats on the east and the Arabian Sea on the west,
Kerala is one of the most beautiful states of India. A tropical paradise of waving coconut
palms and wide sandy beaches, this thin strip of coastal territory slopes down from the
mountain Ghats in a cascade of lush green vegetation and varied fauna. One of the most
commonly seen tropical trees in Kerala is the Coconut tree. In fact, even the name Kerala
(Keralam in Malayalam) is derived from this tree ("Kera" in Malayalam language means
Coconut and "Alam" means Land, thus Keralam = Land of Coconut). Everything from
Kerala's culture to its dishes is evolved around the Coconut tree.

Alleppey (Alappuzha in Malayalam) is the nerve center of Kerala’s famous Coir industry.
Here, one can see coconut husks being beaten into fiber for making beautiful mats and other
coir products. Both men and women are actively involved in the production of Coir. The
women are mainly involved in the yarn spinning sector and the men in the product-weaving
sector. Coir Industry enjoys the status as the largest Cottage Industry in the State of Kerala,
giving employment to over a million people. Kerala also has a very fine natural harbour

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located at Cochin (Kochi). From the ancient times itself Cochin had found a place in the
minds of Europeans as a trading center because of its port and spices.

1.2 Need for the Study

A business organization is a system, which comprises of different departments and sub-
departments, which facilitate management of day-to-day operations of an organization in
an effective manner. Departments are also helpful for classification and distribution of
work, which actually leads to effectiveness in business operations without overlapping of
business activities. It also enables in defining the authority and responsibility of each
individuals who all are working in an organization for the achievement of the ultimate
goal of the organization.
Usually in a business organization, we can see a number departments working for the
organization. It includes finance department, marketing department, production department,
human resource or personnel department, R&D department, I.T. department etc.

1.3 OBJECTIVES OF THE STUDY

 To study the organization as a system and its various functional areas

 To know the functions performed by each departments.
 To have the practical knowledge of the application of management theories.
 To understand the organization structure and flow of information throughout
the organization
 To understand the roles and responsibilities of employees and managers of
various departments.
 To understand the strategies adopted to confront the challenges faced by the
company
 To conduct swot analysis to identify the strength, weakness, opportunities and
threats of the organization

1.4 METHODOLOGY

“Research methodology is a term that basically means the science of how research is done
scientifically. It is a way to systematically and logically solve a problem, help us understand
the process not just the product of research, and analyzes methods in addition to the
information obtained by them”.

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It is an operational frame work which helped to collect required primary data and secondary
data.

PRIMARY DATA

“Primary data is information that you collect specifically for the purpose of your research
project. An advantage of primary data is that it is specifically tailored to your research needs.
A disadvantage is that it is expensive to obtain”.

Primary data is collected through direct interviews and discussions with the managers of the
concerned departments, workers and office staff.

SECONDARY DATA

“Secondary data refers to data that was collected by someone other than the user. Common
sources of secondary data for social science include censuses, information collected by
government departments, organizational records and data that was originally collected for
other research purposes”.

The secondary data was collected from various sources such as journals, research reports,
annual reports and other company publications, websites, etc.

SCOPE OF THE STUDY

The study helps to get the knowledge of coir industry, history of the company, the structure
of the organization, departmental functions, variety of coir products and it’s purposes and the
actual performance of the company.

1.5 LIMITATION OF THE STUDY

 This study is academic effort so it is limited by cost and coverage

 Information provided by the company was limited
 Secondary data received from company manual were out-dated
 Due to busy routine of the officers and employees, proper interviewing of them
could not happen
 The data collected through interviews; the information is subjected to the bias of
individuals

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 The main limitation is the time factor, the one month time is not sufficient to
conduct a detailed study about the organization.

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CHAPTER – 2

INDUSTRY PROFILE

COMPANY PROFILE

PRODUCTION PROFILE

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2.1 INDUSTRY PROFILE

Coir or coconut fiber, is a natural fiber extracted from the husk of coconut and used in
products such as floor mats, doormats, brushes and mattresses. Coir is the fibrous material
found between the hard, internal shell and the outer coat of a coconut. Other uses of brown
coir (made from ripe coconut) are in upholstery padding, sacking and horticulture. White
coir, harvested from unripe coconuts, is used for making finer brushes, string, rope and
fishing nets ropes and cordage have been made from coconut fiber since ancient times. Indian
navigators who sailed the seas to Malaya, Java, China, and the Gulf of Arabia centuries ago
used coir for their ship ropes. Arab writers of the 11th century AD referred to the extensive
use of coir for ship ropes and rigging

A coir industry in the UK was recorded before the second half of the 19th century. During
1840, Captain Widely, in co-operation with Captain Logan and Mr. Thomas Treloar founded
the known carpet firms of Treloar and Sons in Ludgate Hill, England, for the manufacture of
coir into various fabrics suitable for floor coverings

The Coir industry has to its credit a tradition and heritage of centuries. But development of
Coir industry in India has begun in an organized way only in 1959. Ever since this humble
beginning, Coir products have been improving in quality, quantity and variety. For historical
reasons, cultivation of coconuts and extraction of Coir fiber and its further processing have
taken deep roots in the state of Kerala. The rapid expansion of coconut cultivation in non-
traditional areas increased the production of coconut and the industry has also developed
gradually in the states of Tamil Nadu, Karnataka, Andhra Pradesh and Orissa.

Coir industry in India is one of the important rural industries. It provides source of income to
about 5 lakhs artisans in rural areas. Women constitute about 80% of the work force in coir
industry. Coir has come a long way from the ancient uses. It is still used for agricultural and
domestic purposes. It has also become an article of use in modern life either as garden article,
as bags for the tea leaves, for training hops, as brush mats at the door steps, as long-wearing
carpets in the corridors of the bungalow veranda, as tastefully planned floor coverings in the
drawing room or as the runner on the staircase, as geo-fabric for controlling landslide or soil
erosion, for protection of embankments of roads, railway and canals.

Alappuzha is famous for being the pioneer of coir and coir products. The abundance of
coconuts and palms in Alappuzha make the city home for the coir products since a very early

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age. Historical records and evidences show that the Arab traders were the first to export coir
and other coconut products from the city port. The coir industries of Alappuzha are the most
thriving industries in this locality. The raw materials for coir and coir products are easily
available here in the district and the transport system heavily based on the waterways makes
the additional cost remain as less as possible and, thus, enhance the potentials of this industry.
There are several big names in this coir making and exporting field.

INTERNATIONAL SCENARIO

Currently the global annual production of coir fiber is about 350000 metric tons. Yet, even in
the world’s top two producers India and Sri Lanka, which account for about 90% of global
coir fiber production, combined this renewable resource in underutilized local coir mills
process only a fraction of the available husks, which accrue more or less year round a waste
during coconut processing.

More than 30 countries spread over the tropical belt in the regions of Asia, East Africa and
America grows coconuts and those countries are also potential producers. Philippines and
Indonesia were the leading producers which alone contributed about 45% of the world
production, followed by India and Sri Lanka. Moreover, the six major coconut producing
countries viz. Philippines, Indonesia, India, Sri Lanka, Malaysia and Thailand together
account for 80% of the total world production of coconut.

NATIONAL SCENARIO

Today Indian coir industry has come a long way from manufacturing simple ropes to various
high-end lifestyle products. India established its first coir factory in Alleppey and one James
Darrah, initiated the process of professionalism and modernization in an unorganized sector.

Over one hundred and forty summers ago, when James Darrah decided to establish a coir
factory in Alleppey, he might not have visualized the kind of revolution he was launching in
a strange land. The Europeans had entrenched themselves in Indian subcontinent and political
revolutions of different hues were being enacted in various parts of India. But the one that
Darrah launched by establishing India's first coir factory in 1859-60 in Alleppey, popularly
known as the Venice of the East, was one that has changed the face of Indian coastal belt.

In India coir making is largely a dissipated industry with households producing miniscule
quantity of products. They had established an appeal of fiber by retting and then beating

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coconut for the interior husks. In India produced fiber and many as 1,402 of the 1,831 coir
units in yarn hardly bothered about the advantages Kerala where in Alleppey, establishing the
of professionally organizing their traditional coastal town as the unchallenged headquarter of
coir-making capabilities.

The golden textured Indian coir fiber, which Andhra Pradesh, Odisha and Goa produce,
captured the European and world markets. From then on, there was the success of Indian
coir's reign and it had no turning back. The big corporates soon established coir factories in
Alleppey, Kollam, Kozhikode, Kochi and other parts of Kerala. Industrial giants including
Volkart Brothers, William Goodacre, Pierce Leslie and a spinwall moved in to tap the
potential offered by the golden fiber, and Alleppey was soon a household name all over
Europe and India. By 1967 the "Golden Fiber" had captured the European and the world
markets.

Today the Coir Geo-Textiles or coir Bhoovastra has shot into the lime light which are mainly
due to its eco-friendly characteristics. They are being usually effectively used for improving
soil behaviours, preventing soil erosion, and in helping consolidation of soil. Coir is a 100%
organic and bio-degradable fiber which has great water absorbency and has a definite edge
over synthetic geo textiles, in the environmental aspect and issues. The greatest advantage of
Coir is that it provides an ecological niche for rapid establishment of vegetation.

Coir being the geo-textiles come in a mind-boggling range of woven and non-woven varieties
available for bio-engineering, including geo meshes, girds, geo-beds, anti-weed blankets,
needled felts, erosion control blankets, geo-rolls, geo-webs, and fascines. The main reasons
that helped the establishment of the coir spinning industry in Kerala are the presence of
brackish backwaters and lagoons of the state. Brackish waters had to be replenished by fresh
water at frequent intervals to wash away the water contaminated in the process of retting of
husks, and Kerala was naturally endowed with this facility. This made an essential
establishment of the industry so firmly in India and particularly in Kerala, even though
coconut production was significantly high in several other countries like Indonesia,
Philippines, Sri Lanka and Thailand.

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2.2 COMPANY PROFILE

Kerala State Coir Corporation Ltd is a fully owned government company set up in 1969 for
the systematic development of coir industry in the state. The corporation has its
administrative wings and manufacturing facilities in a sprawling complex in Alappuzha,
Kerala. Its diversified operations include curled coir manufacturing and allied product
sectors. The corporation has the status of being the largest and the most diversified
manufacturing plant in the country.
The corporation believes in the philosophy of producing quality built-in-products through a
dedicated team of staff and workers from top to bottom. This commitment to quality enables
the company to face any sort of challenge in this sector. This is the first company in the
public sector to introduce quality circles successfully among the workers and staff, proving
its commitment to quality. The company has achieved the ISO 9002 certification in the year
of 2001.

LOCATION:

The Kerala State Coir Corporation, fully owned by the Government Company is situated in
Alappuzha District.

COMMITMENT

The Kerala State Coir Corporation Ltd. was established by the government to find out market
for the coir products of more than 4000 small scale producers in the state of Kerala in
addition to our own manufacturing. The coir industry in Kerala is a traditional one and
employs nearly 0.40 million workers and majority of them are woman from villages. Uplift of
the industry means the upliftment of the life standards of 0.40 million workers mainly that of
village woman.

OUR CAPABILITY

In its Model Coir Factory, the corporation can manufacture mats up to 8ft and mattings up to
4mt width with the help of specially trained workforce. The corporation also has the
capability to manufacture power loom mattings in various widths. In the Model Coir Factory,
latest management techniques are applied in the areas of man, material and machine
management so as to give out the best products possible. A highly successful, statistical

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quality control device has been evolved for online production, quality checkup and also to
ensure timely delivery of goods.

OUR FACILITY

Corporation can boast of having a unique dye house having sophisticated facilities like
computerized color matching and color fixing facilities etc. This dye house can process huge
quantity of various natural fibers such as coir, sisal, jute, hemp, aloe etc. to produce uniform
shade and tone. The Corporation has also installed a Computer Aided Design Facility, the
only one of its kind in the country in the coir industry, which can produce excellent designs in
large numbers to the varied taste of importers.

OUR NETWORK

With a nationwide network of 10 showrooms spread across the country, the Corporation is
one of the major suppliers to Defense Establishment and other big government and non-
government sectors in the country meeting their stringent quality standards and
specifications.

AS AN EXPORTER

As a pioneering exporter, the company has been exporting its product to both European
countries and erstwhile U.S.S.R. Globally accepted quality standards and consistency enables
the company to export its products to U.S.A, U.K etc. facing stiff competition from other
exporters.

OUR MISSION

A major part of the coir production in Kerala comes from the small scale producers, based in
the villages of Kerala, employing around 0.4 million woman. We are marketing the products
of small scale producers, in addition to our own products; thereby upliftment and promotion
of this industry will result in improved lifestyle of village woman in the state of Kerala.

OUR VISION

To act as a nodal agency for coordinating technological, commercial and academic

development in the entire gamut of activities related to the coir sector in Kerala and emerges

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as a center of excellence for research and development industrial consultancy and knowledge
dissemination globally.

CORPORATE OBJECTIVES

 To maintain optimum levels of efficiency and productivity and to secure optimum

returns on investment
 To maximize profits from projects taken up
 To continuously upgrade the quality of Human Resource of the company and to
promote organization development
 To continuously, improve the plant operational safety and to confirm statutory
pollution control standards
 To ensure corporate growth by expansion and diversification
 To care for community around

UNIQUE ACHIEVEMENTS OF KSCC

It was the concern about poor and deplorable condition of the people engaged in spinning of
coir yarn; especially the women that made coir corporation and its overseas business partner
premier ltd.UK embark upon a novel scheme empowerment the women folk at Chethi
through savings and credit scheme called self-help group.

Coir was the traditional and chief trade of Alleppey district known as Venice of East, which
has natural canals, backwaters and lagoons and also some of literate talented craftsman for
making best quality of coir products.

In 1998 coir corporation efforts got focused in Chethi area and 60 families from amongst the
poorest of the poor were selected to provide employment and ensure social upliftment. It was
made sure that each of the selected family had 3 adult women securing a job under the
scheme for their livelihood. That was beginning of an ambitious project to end starvation.

ORGANISATION

 KSCC Ltd has four production departments include;

o Mats department
o Matting department

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o Geo textiles
o Coir rugs

POSITIONS IN THE ORGANISATION

Executive staff

 General Manager
 Deputy Manager
 Assistant Manager
 Executive
 Officers
 Junior officers
 Supervisors
 Junior officers

Non-executive staffs

 Senior supervisor
 Supervisor
 Office assistant grade 1
 Office assistant grade 2
 Special grade assistant
 Clerical staff
 Subordinate staff
 Non clerical office & subordinate staff
 Workers

PROBLEMS FACED BY KSCC LTD

 High dependency on weather for coconut yield

 High energy cost
 Poor system of husk collection energy cost
 Insufficient use of domestic talent for product design and development
 Inadequate industry collaboration for research and development
 Unstable high freight rate

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 Poor foreign marketing of coir products

 Market and product diversification
 Poor consumer satisfaction in some instance
 Changes in taste and preference
 Availability of packaging facility

CONSTRAINTS

Millers ;millers face challenges relating to retaining workers, high absenteeism from work, and
lack of technical capacity and attracting young people to the company. As a result, they have
to rely on few trained older workers. Millers are also constrained in adapting to new technology.

Initial capital requirements for machinery and equipment. Supply of raw material is another challenge
facing millers.

WORKERS

 Low wages
 Poor working condition
 Employment insecurity
 Wage difference between male and female workers
 Safety issues are concern at mills and factories where face occupational hazards.

MARKETERS
 People (individual producers, sub-contractors and exporters) who market coir fiber
and coir products are facing challenges including limited access to markets
 low price of coir products
 low profit margin
 lack of marketing know-how
 lack of training
 lack of professionalism

PROBLEMS AND PROSPECTS OF COIR BOARD

THE INDIAN COIR INDUSTRY

The coir industry had a strong export orientation since its early days when the trade was denominated
by European business enterprises during 1950.

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2.3 PRODUCT PROFILE

ABOUT COIR

Coir is a versatile natural fiber from mesocrap tissue, or husk of the coconut fruit. A resilient,
hard fiber found between the husk and outer shell of a coconut, coir is found in a wide range of
products. From mulch blankets, fish nets, and rope to brushes, basket liners, brooms and door mats,
manufacturers are experimenting with the wide array of benefits this natural fibers offers.

The unique colour of this fiber has earned for it the favourite name “the golden fiber” although it is
known in other countries as coir or cocoas fiber. Products made from coir acquired worldwide
reputation and naturally coir industry could attract large markets. The wide acceptance of coir was
largely because of its golden sheen, tensile strength and resistance to dampness. These qualities made
coir useful in various applications.

Among the traditional industries of the state, coir stands out as the greatest and most important
employment giver. Out of the four lakh people employed in this sector 80% are women. Although the
industry earns a foreign exchange of over Rs.800 crores per year the potential for growth is
phenomenal.

TYPES OF PRODUCTS

Coir products can be broadly classified into the following varieties

 Mats
 Matting
 Coir geo-textile
 Coir rugs

MATS

Coir mats are environment friendly and traditional choice for entrance mats, were maximum
moisture absorbency, dust removal and shoe-drying action are required. Depending on the
construction, weave quality and thickness of fiber and type of yarn, door mats of various
types are available. We have provided innovative designs on these mats to the requirement of
our clients. A large range of mats are available such as :

 Fiber mats

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 Creel mats
 Carnatic mats
 Rod mats
 Rubber moulded mats etc.

PRODUCTION OF MATS

Unfinished mats Shearing process Trimming process

Clipping process Smoking process Stencilling process

Mending process Quality control Packing process

Dispatching

Fig : 2.3.1

MATTING

Mattings of different width and designs are woven to suit different applications, floor
mattings, wall to wall carpets, roof mattings, car mattings, cricket pitch mattings etc.

Mattings are made on traditional handlooms or power looms. It is available in natural beach,
solid colours and a multitude of designs/patterns made by weave and colour combinations
and with or without latex backing. Quality of the matting is determined by the type of yarn
and weave used. It is mainly used as floor coverings and floor runners for furnishing
stairs/corridors. Also used for wall paneling ceiling, lining and echo control.

There are different patterns in the weave of mattings. They include:

 Two treadle plain weave

 Two treadle basket weave
 Three treadle weave

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 Four treadle weave etc.

PRODUCTION OF MATTING

Raw materials Dye house

Bleaching house

Dyeing process

Winding process

Weaving process

Mending process

QualityProcess

Packing process

Dispatching
Fig : 2.3.2

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BLEACHING

The main purpose of bleaching is to avoid oil content and dirt in yard and to give colour,
brightness and penetration. For this purpose certain chemicals are used.

Hydrogen peroxide 10%

Sodium silicate 10%

It requires a processing time of two hours at a heat of 80 – 100 degree celcius. After the
processing time alum/ascetic acid and fresh water are added to the material for cleaning.

DYEING

Dyeing of coir fiber/yarn is essential for improving the marketability and aesthetic value of
coir products and according to customer taste. A dyestuff is most commonly an organic
compound, which can be used to impart colour to a substance. A Wide range of dyes capable
of yielding bright shades of excellent fastness are available for the dyeing of yarn.

In dyeing, the fiber absorbs the dye from the aqueous solution is more or less uniformly
coloured. The uniformity of dyeing depends upon the absorptive power of coir fiber, the
nature of the dye and condition of dyeing. The dyed shade usually must be matched against a
sample and the fastness of the dyeing must conform to the specified requirement of the
consumer.

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WEAVING

The company successfully maintained the balance between traditional craftsmanship and
latest technology throughout the year. For weaving, the factories are equipped with the latest
yarn production and dyeing equipment’s, imported automatic shaft/jacquard looms and
finished equipment. During the weaving process, the fiber mats, rod mats and different
coloured fiber tufts are inserted for embellishing the designs in the mat.

DESIGNING

The woven mats are subjects to beveling or clipping process for embossing the designs by
clipping the edge of the designs for giving an embossed look. Any complicated design can be
added while weaving proceeds on these mats as per the need of the customers.

PRINTING

There is a section for printing the designs on the coir products. It is done by expert persons
using well equipped printing device.

CUTTING

Large piece of matting will cut into required size. They are mats. A separate section is also
here for this purpose.

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STITCHING

After cutting the mats, the edges of many finished by using latex and other chemicals and
then stitching the edge for a finishing touch.

PACKING

After completing all these processes in production, the products will be packed in a polythene
bag. Each individual pack contains details like;

 Complete address
 Net weight

DISTRIBUTION

The orders are received and the products are distributed through the following ways:

 Through showrooms spread throughout the country

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 Through internet
 Through participatory in exhibitions

SUB-BASE LAYER IN ROAD PAVEMENT

Closely knitted coir fabric acts as an interface between the sub-grade and the secondary
granular sub-base, improving drainage. Thick coir fabrics which come in rolls of 1 meter
width can be unrolled over the sub-grade. The granular sub-base can spread over the coir
matting and may be rolled with a light or media roller.

In case of a clayey sub-grade, a cushion 10 cm thick may be laid under the fabric to protect it
from puncturing.

FUNCTION OF GEO-TEXTILES IN ROAD CONSTRUCTION

Geo-textile can perform one or more function to improve the hydraulic and/or the mechanical
behavior of a structure in which it is incorporated under a given application. The basic
functions which can be performed by geo-textiles are given below:

HYDRAULIC FUNCTION

1. Fluid transmission:- a geo-textile can collect a convey considerable flow of a fluid

with in its own plane towards an outlet, thus draining this soil in which it is plated
2. Filtration:- a geo-textile acts as a filter since it allows fluids to pass through it in the
normal line of flow while preventing the soil particles from being carried away by the
fluid current

MECHANICAL FUNCTIONS

1. Separation :- when placed between different materials such as fine soil and gravel
which have tendency to mix when they are squeezed together or subjected to load, a
geo-textile can act as a separator. Here its function is to prevent the mixing of the two
materials so that each of them can retain individual properties.
2. Reinforcement :- it can be classified into sub categories such as tensioned membrane
and tensile member. Geo-textile functions as tensioned membrane when placed
between two materials having different pressures and its tension balances the pressure
difference between two materials, thus strengthening the structure. It act as tensile

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member when it provides tensile modules and strength through interface shear
strength.
3. Protection :- a geo-textile protect a material when it nullifies or distributes stresses
and strain to the protected material. This can be for;
i. Surface protection as in the case of surface erosion
ii. Interface protection as in the case of cracked pavement/asphalt overlay system
to relieve reflection cracking
4. Support :- placed between a water tight membrane and a material containing void
spaces, the function of a geo0textile is to prevent puncturing or bursting of the
membranes over the voids

As stated earlier, geo-textiles often fulfil more than one of the above functions. Typical
combinations are;

 Separation and filtration

 Separation and protection
 Separation and reinforcement
 Filtration and draining etc.

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USE OF COIR IN DRAIN WORKS

Bamboo drains with the coir strands as the core material may be used as vertical drains to
consolidate shallow depths of soft soils coir ropes are inserted into perforated, hollow, split
bamboos and tied by GI wires. These bamboos are inserted into subsoil. The site is covered
with sand blankets and is pre-loaded to expedite the process of consolidation. With passage
of time, the water is drained out through the coir strands to leave the subsoil consolidated and
strengthened. A perforated PVC pipe can also be used in the place of bamboo.

High diameter coir rope can also be used effectively for draining purposes. PVC pipes which
contain this thick rope are inserted into the water logged soil. Then the PVC pipe is pulled out
leaving the coir rope imbedded in the soil which functions as an efficient drain.

COIR IN SLOPE STABILITY PROBLEMS

Coir nets can be used as different layers in structural filling the embankment construction.
The friction developed between the soil and coir nets results in good shear strength of the fill.
It has also been tested that the coir net itself has a good tensile strength. Both these properties
result in reinforcement of the fill/embankment and construction for greater heights

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RAIL TRACK STABILISATION

Deformation of subgrade below the track represents a large percentage of rail track
maintenance costs. High expenditure related to labour and material has urged the railway
engineers to seek more innovative and cost effective ways to improve sub-grade stability.
Geotextiles provide an excellent and economical medium for stabilizing rail beds. The
inclusion of geotextile reinforcement in the sub-track layers payments mud pumping and loss
of ballast into soft subgrade. Geo-textiles also help in distributing loads, thereby avoiding
concentrated stress points.

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COIR RUGS

Coir rugs will enhance beauty of any part of the interior. A real fancy item, it is available in
wide variety of shapes and size. Coir Rugs are ideal for those who love to have a long lasting
natural fiber rug with elegant look. Coir rugs come in a range of weaves – Panama, Boucle
and Herringbone mixed with natural / bleached colour shades with or and without latex
backing ends tucked, fringed or cotton/tapestry bound.

PRODUCTION OF COIR RUG

Raw materials

cutting

Stitching

Corner stitching

Quality checking

fig:2.3.3
Gluing

Packing section

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CHAPTER – 3

ORGANISATION STRUCTURE

AND DEPARTMENT STUDY

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3.0 ORGANISATION STRUCTURE

Every organization should have a sound organisational structure for its healthy functioning. An
oranisational structure is mostly hierarchical concept of sub ordination of entities that collaborates and
contributes to serve one common aim.
Organisations are member of clustered entities. The structure of an organisation is usually setup in
one of a variety of styles, dependent on their objectives and ambience. The structure of an
organisation will determine the modes in which it shall operate and will perform. Organisational
structure allows expressed allocation of responsibilities for different functions and processes
to different entities. ordinary description of such entities is a branch , site ,development, work
groups and single people.

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Board of directors

Company secretary

Managing directors

General manager

Finance Marketing Personnel Workers Materials

manager manager manager manager manager

Department
finance
Department Senior Plant engineers Assistant
manager
marketing superintendent manager
manager
Assistant
finance Junior chemist UDC
manager Senior superintendent
superintendent
Financial
Machine LDC
accountant Senior assistant
operator
Junior
superintenden superintendent
Junior assistant Machine
t assistant
Senior assistant

UDC UDC Furnishing

workers
Junior assistant

LDC LDC
UDC

LDC

Fig:3.1

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DEPARTMENT STUDY

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DEPARTMENT STUDY

Departments/Functional areas

The organization is made up of various departments. Departmentalization is the grouping

together of similar or logically related activities. There are several bases of
departmentalization. This departmentalization is usually shown on an organizational chart.
Different forms of departmentalization are departmentalization by functions, by products, by
region, customers, process or a combination of any of them.

DEPARTMENTS OF THE COMPANY

Departmentalization refers to the process of grouping activities into departments. Division of

labour creates specialists who need coordination is facilitated by grouping specialist together
in departments. The company has 9 departments. The main departments of KSCC are

 Factory and production department

 Personnel department
 Finance department
 Purchase department
 Sales and marketing department
 Export department
 Project department
 IT department
 PPSS department

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3.1 FACTORY AND PRODUCTION DEPARTMENT

Among the functional area of management, production is considered to be crucial in any

industrial organization. Production is the process by which raw materials and other input are
converted into finished product. In production function workers, materials and machines are
used to convert input into output. The process of conversion is the heart of the production
function. It is the place where department personnel play a central role in achieving the object
of organization.

Production is the foundation on which every organization is build. Production and marketing of goods
and services are the fundamental objectives of an organization. Production is the intentional act of
producing something in an organized manner.

The production is headed by factory manager. Under the factory manager there are supervisors who
look after the production activities. The production is in three shifts by rotation. The responsibilities
of factory manager are:

 Follow up production schedule as per the plan

 Upgrade the technical efficiency of production
 Maintain the relationship with other department

FACTORY

In the coir factory, the corporation can manufacture mats up to 8 ft. and mattings up to 4mt.
width with the help of specially trained work force. The corporation also has a capability to
manufacture power loom mattings in various widths. In the model coir factory, latest
management techniques are applied in the areas of man, material and machine management
so as to give out the best products possible. A highly successful, statistical quality control
device has been evolved for on line production, quality check-up and also to ensure timely
delivery of goods.

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PROCESS DESCRIPTION

COIR PROCESSING

fig: 3.1.1 Husk

Green husk Dry/semi husk

Natural retting Soaking/mech. extraction

Brown coir fiber

White coir fiber

Floor covering

Yarn
Mat

2ply Mattings Curled coir rubberised coir

Carpets mattresses
3ply

Yarn Needle felt nonwoven geo-fabrics

Woven geo-fabrics
Ropes & cordages Yarn woven geo-fabrics

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FIBRE EXTRACTION

Coir is a versatile natural fibre extracted from mesocarp tissue, or husk of the coconut fruit.
The husk contains 20% to 30% fibre of varying length. After thrashing the husk, the long
fibres are removed and used for various industrial purposes such as rope and mat making.
The remaining material, composed of short and medium-length fibres as well as pith tissue, is
commonly referred to as waste grade coir. The waste grade coir may be screamed further to
as coir pith. The starting point of industry is the process of de-husking after harvesting of the
mature coconut crop. Coir fibre is extracted from the husk surrounding the coconut. In most
area coir is by-product of copra production, and the husk are left on the fields as such or used
as fertilizer due to high potash content.

Brown fibre

The fibrous husks are soaked in pits or in nets in a slow moving body of water to swell and
soften the fibre. The long bristle fibres are separated from the shorter mattress fibre
underneath the skin of the nut, a process known as wet-milling. The mattress fibre are shifted
to remove dirt and other rubbish, dried in the sun and packed into bales. Some mattress fibre
is allowed to retain more moisture so that it retains its elasticity for twisted fibre production.
The coir fibre is elastic enough to twist without breaking and it holds a curl as though
permanently waved. Twisting is done by simply making a rope of the hank of fibre and
twisting it using a machine or by hand. The longer bristle fibre is washed in clean water and
then dried before being tied into bundles of hunks. It may then be cleaned and “hankled” by
steel combs to straighten the fibre and remove any shorter fibre pieces. Coir bristle fibre can
also be bleached and dyed to obtain hanks of different colours.

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White fibre

The immature husks are suspended in a river or water-filled pit for up to ten months. During
this time, micro-organisms break down the plant tissues surrounding the fibers to loosen them
— a process known as retting. Segments of the husk are then beaten by hand to separate out
the long fibers which are subsequently dried and cleaned. Cleaned fiber is ready for spinning
into yarn using a simple one-handed system or a spinning wheel.

Researchers at CSIR’s National Institute for Interdisciplinary Science and Technology in

Thiruvananthapuram have developed a biological process for the extraction of coir fiber from
coconut husk without polluting the environment. The technology uses enzymes to separate
the fibers by converting and solubilizing plant compounds to curb the pollution of waters
caused by retting of husks.

TRADITIONAL FIBRE EXTRACTION

The traditional production of fiber from the husk is a laborious and time-consuming process.
After separating from the nut, the husk are processed by various retting techniques generally
in ponds of brackish water (for three to six months) or in backwaters or lagoons. This
requires 10-12 months of anaerobic (bacterial) fermentation

By retting, the husks are softened and can be decorticated and the fiber is extracted by
beating, which is usually done by hand. After hackling washing and drying (in the shade) the
fiber are loosened manually and cleaned. The remaining residual pith- which was previously

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considered a waste problem- has recently found new profitable markets as a peat moss
substitute for horticulture production.

Traditional practices of this kind, yield the best quality white fiber for spinning and weaving,
retted fibers from green husks are the most suitable fiber for dyeing and bleaching.

For the production of more coarse brown yarns shorter periods of retting may be applied.
These find an increasing outlet in geotextile application.

MECHANICAL EXTRACTION
Alternately, mechanical processes using either de-fibering or decorticating equipment process
the husks after only five days of immersion in water tanks. Crushing the husks in a breaker
opens the fibers. By using revolving “drums” the coarse long fibers are separated from the
short woody parts and the pith. The stronger fibers are washed, cleaned, dried, hackled and
combed.

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HAND SPINNING
The usual practice in hand spinning is to roll the fiber into short length of 6 to 9 inches giving
a clockwise twist by hands. When sufficient quality has been made, two or three short lengths
are taken in hand together and made into yarn of two plies by giving a counter twist, using
both palms.

When the counter twist reaches near the end of striking, further pieces of short lengths kept
ready are added one after other, while the counter twist by hand is continued till the required
length of yarn for a knot is reached. This is reeled in the form of a hank and a knot is made at
the end. Hands pun yarn always has a soft twist.

TRADITIONAL RATT SPINNING

Spinning is usually done on the ‘charka’ or spinning wheel. Wheel spinning is gradually
displacing hand spinning. From the middle of the 19th country, coir spinning wheels have
been introduced with a view to increasing production and obtaining the hard twist required
for the manufacture of matting, etc. to prepare two- ply coir yarn on the spinning wheel, one
set of two wheels, one stationary and the other movable is required. The stationary wheel
usually contains two spindles set in motion through the center of the wheel. The movable
wheel contains one spindle only.

Usually women keep them in their arms pits, make a loop with a small quantity of fiber and
then put the loop thus formed into the notch of one of the spindles on the stationary wheel
and give the fiber a uniform thickness while walking backward. Another operator then gives
the twist to the fiber thus led by turning the handle of the spinning wheel. This operation
continued till the required length of stand is reached. The strands are then passed through a

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grooved rod and tied together into the notch of the spindle, the grooved rod being allowed to
move forward. The movable wheel is turned in the opposite direction.

The object of the grooved rod is to regulate the twist of the yarn and to prevent entanglement
of the strands at the time of doubling. When the grooved reaches the stationary wheel, the
turning of the spindles of the spinning wheel is stopped and all the ends from that of the
stationary wheel are cut off and he yarn is tested to see whether there is sufficient twist. If
more twists is required, the movable wheel is turned towards its original direction till the
required twist is obtained. If it contains more twist than desired, movable wheel is turned in a
direction contrary to the original twist.

Traditional wheel spinning using a spinning wheel requires three people, who may produce
12-15 kg of yarn.

ROPE MAKING
Hand spun yarn; spun from coir fibers which are less cleaned and extracted from
inadequately retted husks; containing varying amount of pith; characterized by its
extraordinary thickness; unclean in appearance; Very less hairy. The rummage ranges from
50mts to 60mts & above. The major types of ropes are as follows:

Be pore: hand spun yarn; spun from coir fibers extracted from insufficiently retted husks; of
bluish brown colour comparable in thickness to thinner types of roping; containing small
amount of pith and husk; less dirty than the others types of inferior varieties of yarns. The
rummage ranges from 70 to 90 meters

Be pore-Z: hand spun yarn; spun from coir fibers extracted from insufficiently retted husks;
of bluish brown colour; comparable in thickness to thinner types of roping; containing small
amounts of pith and husks, less dirty than the other types of interior varieties of yarns. The
rummage changes from 70 to 90 mts

CLASSIFICATION OF COIR YARN

The coir industry recognizes quality of yarn based on the characteristics of the fiber
associated with the place of origin of the fiber besides other physical characteristics in
spinning. The characteristics of the fiber differ based on natural factors and practices
followed in different geographical areas. The varying characteristics are colour, rummage,
twist, pith, stand, etc. brought about by natural variations and variations in methods and
conditions of retting and spinning, seasonal conditions etc.

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Some of the yarns are wheel-spun while others are hand spun. Hand-spun yarn is twisted
rather loosely as compared with those spun by wheel. Most of the yarns are prepared from
retted husk, while some coarse and inferior types are made from husks without retting that is
known as un-soaked yarns.

The superior varieties of yarn are further sub-divided into several grades according to
fineness and evenness of twist. For example, anjengo yarn is classified as anjengo superior,
ordinary and special anjengo yarn which represents the finest among the variety. Each grade
if further sub-divided into two or three grades distinguished as “A”, “B”, “c”, or no.1, no2,
etc. according to colour. Bright golden colour yarns are considered the best, while the lower
grades are comparatively dull and dark in colour. The cheaper types of yarn are classified into
several grades generally distinguished by numbers (1), (2), (3), (4), etc. according to colour
evenness of twist and extent of associated pith. Another factor which is taken into
consideration is classifying yarns, mainly by the manufacturers of mats and mattings is
storage which represent the number scores of yarn required for a 36” (91.44cms) matting.
Thus if 240 yarns of a particular type are required for a 36” wide matting, the yarn would be
graded as 12 score yarn. Higher the storage, finer the yarn

Important varieties of coir yarn

Classification based on place or origin

 Anjengo yarn:

 Mangadan yarn (anjengo ‘M’)

 Ashtamudy yarn

 Alapat yarn

 Aratory yarn

 Vykom yarn

 Parur yarn

 Qualandy yarn

 Beypore yarn

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Classification based on other characteristics

 Fine un-soaked yarn

 Murippiri yarn

 Rope yarn

 Beach yarn

DYE HOUSE
KCSS can boast of having a unique dye house having sophisticated facilities like
computerized colour matching and colour mixing facilities etc. this dye house can process
huge quality of various natural fibers such as coir, sisal, jute, hemp, aloe etc.to produce
uniform shade and tone. The corporation has also installed a computer aided design facility,
the only one of its kind in the country in coir industry, which can produce excellent designs in
large numbers to the varied taste of the importers

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DYEING

Dyeing of coir fibre/ yarn is essential for improving the marketability and aesthetic value of
coir products and according to customer taste. A dyestuff is most commonly an organic
compound, which can be used to impact colour to a substance. A wide range of dyes capable
of yielding bright shades of excellent fastness are available for the dyeing of yarn.

In dyeing, the fibre absorbs the dye from the aqueous solution is more or less uniformly
coloured. The uniformity of dyeing depends upon the absorptive power of coir fibre, the

nature of the dye and condition of dyeing. The dyed shade usually must be matched against a
sample and the fastness of the dyeing must conform to the specified requirement of the
consumer.

Dyeing of coir with reactive dyes

The dye bath is set with required quantity of dye stuff dissolved in water in cold (1:10 m: 1
ratio) with half the required quantity of salt. The wetted/coir yarn is entered and treated for 20
minutes. The remaining part of the salt is added and worked for another 20 minutes. Half of
the prescribed quantity of soda ash is then added and worked for 15 minutes. After wash the
remaining part of soda ash is also added and worked for 20 minutes. 10 gal litre urea is added
in the dye bath for fixing the dyes to the material at the final stage of dyeing and the material
is allowed to remain in the bath for 15 minutes. After dyeing, the material is taken out,
squeezed and washed in cold water. Finally, the material is soaped with 3 grams per litre soap

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at boil for nearly 15 minutes, to remove the excess dye stuffs. The material is thoroughly
washed in cold water and dried in air under shade. During the process of drying the material
is subjected to thorough agitation to have excellent contract of the material with the dye
liquor.

The major quantity of dyeing of coir fibre/yarn is done in the small-scale sector using
conventional process. With a view to improve the quality of dyed material, modern dyeing
methods are also adopted by the industry.

The class of dyes

Dyes belongs to the classes of basic acid and direct dyes are suitable for achieving better
fastness properties, penetration and brilliant shade with less cost are common in use in coir
industry. These dyes are applied to the materials from their solutions in water with the aid of
chemicals like acetic acid, sulphuric acid, formic acid, common salt etc. This facilitate the
transfer of dyes from the dye bath to the fibre/ yarn under appropriate conditions of
temperature for specified periods depending on the dyestuff that is being used. The basic dyes
have high tincture value and affinity to coir but are fugitive to light and rubbing. The acid
dyes have better fastness to light but of less brightness than basic dyes. Direct dyes find use
in producing shades having fastness properties better than acid dyes but they produce dull
shades and require loner processing time.

Bleaching

Bleaching of coir fibre/yarn is essential for improving the colour. This is widely used in coir
industry for the purpose of ornamentation of coir products. These are certain shade of
dyestuff to be used in the production of coir matting/carpets, which required bleaching of
yarn to improve its penetration and brightness especially in the case of pastel shades.

Printing

The process of printing is used to achieve ornamentation and improve the aesthetic sense of
the final product. The designs and patterns with attractive shade are printed on these products
by printing for achieving value addition and marketability. Printing on coir is mainly based
on the use of stencils. For the presentation of stencilled designs, the sketch of desired design
is first prepared in the required size of paper. It is then transformed to galvanized iron sheet

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called stencil plates depends upon the number of colours used in the design. One plates each
for one colour and placed over the mats/matting and the dyestuff is applied by spraying or
brushing for mats and matting respectively. The edges of the stencil plates were guarded with
narrow strips of metal to avoid spreading of dyes while spraying on the coir products. Care
should be taken to avoid over lapping of two colours of the same design during stenciling.
Enamel pigments and water based emulsion pigments are also used for printing of designs on
coir mats and matting. The printing require limited quantity of dyestuffs as it is impressed on
the top surface only. The time consumption and manpower is also less and hence cost of
production is low compared to weaving.

Designing

During the weaving process of fibre mats and rod mats different coloured fibre turfs are
inserted for embellishing the designs on the mat. The woven mats subjected to beveling or
clipping process for embossing the designs by clipping the edges of designs for giving and
embossed look. Any intricate designs can be woven on these mats as per the requirement of
the customer.

Substitution of coir fiber

It has been observed that natural fibres such as sisal, jute, etc. are being used increasingly in
combination with the coir fibre in various products. Use of jute and sisal is more significant
in the production of mattings

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STRUCTURE OF PRODUCTION DEPARTMENT

Work manager

Production unit Administrative unit

Plant engineers assistant FM

clerk

Mechanical electrical

Steno typist

others

Chemist

Quality control

Machine operators Workers

Fig:3.1.2

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3.2 FINANCE DEPARTMENT

Financial management is that managerial activity which is concerned with the planning and
controlling of the firm’s financial resources. The process of financial analysis is widely
employed to evaluate the past, present and likely future performance of organization and
identifying the financial strength and weakness of the enterprise by properly establishing
relationship between the items of the balance sheet and profile and loss account. Every
industrial organisation, whether large, medium or small need finance to carry on its activities
its targets and objectives. Availability of sufficient amount of finance, capital or funds is an
important requirement for the successful working of every industrial organisation

STRACTURE OF FINANCE DEPARTMENT

Managing director

Finance manager

Chief accountant

Accountant

Staff

Fig:3.2.1

RESPONSIBILITY AND AUTHORITY

The financial manager is the head of finance department, who is responsible for the overall
functioning of financial matters. The finance manager decides major functional decisions like
capital budgeting, financial decision and management or earning. He has to guide and control
the activities of the personnel below him. Accountant is authorized to perform duties in the
absence of manager. The office is responsible for the variation of all documents, purchase,
vouchers and debit notes.

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MAJOR FUNCTION OF THE FINANCE DEPARTMENT OF

KSCC

 Accounting the transaction carried out by the company and prepares monthly and
annual financial statements like profit and loss account and balance sheet
 Arrange finance to meet the working capital requirements, the capital additions and
other day to day needs
 Working capital management
 Budgetary control
 Preparation of budget estimates, revised estimates and supplementary grants
 Administration of the consolidated measures
 Audit and accounts
 All matters related to bank and banking institution
 Codification of financial rules and regulations
 All matters relating to audit report
 Matter relating to general provident fund
 Matter related to treasury administration
 Maintenance of loans, advances, accounts
 Managing financial and accounting transactions by using Tally

The financial accounting is computerized. The main ledger, trial balance and balance sheet
are prepared by using tally software

MONEY TRANSACTION

According to the money value of the transaction, different authority gives approval.

 Finance manager approves for transactions coming to Rs 1 lakh.

 Business manager approves for transactions coming to Rs 1 lakh.
 Finance manager and business manager together can approve for transaction up to Rs
3 lakhs.

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SOURCE OF FINANCE

The company receives finance from government as share capital. Now the company working
with its own fund and there is no borrowing from any financial institution. The company
appoints internal auditors for verifying the accounts and they submit a report to the
management also conducted every year.

The company should have an audited balance sheet and profit and loss account with a copy of
auditor’s report. It should be submitted to the finance secretary to the government of Kerala
who will have the right to comments upon supplement to the auditor report in such a manner
as he may deem fit. Any such comments upon supplement to the auditor’s report shall be
placed before the company at the time of presenting the audit report.

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3.3 PERSONNEL DEPARTMENT

Personnel department play a significant role in the human resource management,

administrative management in the recruitment, selection, development, utilization and
accommodation of human resource that are handled by the organization. Human resources
are regarded as the only dynamic factor of production, other factors of production remains
dormant without involvement of human factor.

Human factor is largely the most important factor in any organization. It is very important
that the persons employed in an organization may be developed in an efficient manner. HR
department has the responsibility of providing right people with right skills at the right time
to the organization. Every day is a new day for HR department as it deals with new issues
related to the employees, have to align with different business units and business functions.
So major roles of HR department includes employee retention, motivation, making and
implementing policies, time management, leave management and more spontaneous
functions.

STRUCTURE OF PERSONNEL DEPARTMENT

Fig:3.3.1

MANAGING DIRECTOR

HR MANAGER

STAFF STAFF STAFF STAFF

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The HR manager heads the department. He directly reports to the managing director in
connection with the business decisions of HR department.
The human resource management functions include a variety of activities such as:

 Recruiting the best employees with right skills and talent

 Ensuring that they are high performers
 Dealing with performance issues
 Ensuring management practices conform to various regulations
 Managing employee benefits and compensation
 Maintaining employee records and personnel policies.

KSCC has a very good HR department working for the betterment of the employees. It does
all activities connected with human resource.

FUNCTIONS OF PERSONNEL DEPARTMENT IN KSCC

 Recruitment
 Manpower planning
 Welfare functions including statutory and non-statutory welfare measures
 Maintain discipline
 Job specialization
 Staffing
 Performance appraisal
 Wages and salary
 General administration

MANPOWER PLANNING

An important function of the HR department is that manpower planning. A list of retiring

employee is prepared in advance and a call for recruitment is made. The list of call for
recruitment has to be approved by the MD. The company will inform the vacancies to the
public service commission (P.S.C). Any need for immediate recruitment is made known to
P.S.C

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RECRUITMENT AND SELECTION

KSCC carries out the recruitment and selection procedure in a specific way. Recruitment
focuses on identifying the right people for the right job. There are two ways of recruitment

1. P.S.C recruitment

The company has a professional way of selecting the personnel to the organization
even though the entire recruitment procedure is done by the P.S.C. Recruitment of
personnel is made through common examination conducted for the qualified
applicants. Application has to be forwarded to the P.S.C office after the notification of
the vacancies has been declared in the newspaper. The examination will be conducted
on the specified date and the result will be published in the employment newspaper.
The selection procedure starts with interview. The posts of officers are filled through
P.S.C recruitment.

2. Direct recruitment
Workers and supervisors posts are filled through company recruitment. Normal age
limit for fresh recruitment will be 40 years.

TRAINING

KSCC doesn’t provide any training programs for the workers as hired employees are highly
experienced.

JOB ROTATION

Job rotation is practiced in KSCC. Job rotation is a management technique that assigns
employees to various jobs and departments over a period of a few years.

RETIREMENT

The retirement age of manager is 60 years

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WAGES AND SALARY ADMINISTRATION

In KSCC the personnel manager has a role of advisory nature. Actually the settlement of
wage/salary is done by the KSCC scheme and according to the Kerala govt. employee’s scale
of pay

PERIODICITY OF MEETING

All departments’ HOD meeting will be conducted thrice in a month. The meeting is
conducted with duration of three hours where HOD’s of each department can express their
opinions and views on various departmental issues. The MD will take further actions on the
basis of the reports of the HODs. The progress report will be created to analyze the impact of
the decisions taken in the meetings.

SAFETY EQUIPMENTS

Personal protective equipment

Personal protective equipment (PPE) refers to protective clothing, helmets, goggles, or other
garments or equipment designed to protect the wearer's body from injury or infection. The
hazards addressed by protective equipment include physical, electrical, heat, chemicals,
biohazards, and airborne particulate matter.

Masks and other safety equipment’s such as goggles, gloves, helmets are provided to the
workers for maintaining safety of workers.

Dust masks

A dust mask is a flexible pad held over the nose and mouth by elastic or rubber straps to
protect against dusts encountered during construction or cleaning activities, such as dusts
from drywall, brick, wood, fiberglass, silica (from ceramic or glass production), or sweeping.
A dust mask can also be worn to protect against allergens.

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Goggles

Safety goggles are that category of PPE that help to protect the eyes from any dangers
involved in industrial zones and particularly from hazardous materials, smoke, air particles
and chemicals.

Gloves

Safety gloves and hand protection. For employees, workplace safety is synonymous with
hand safety. Not only do gloves protect workers, they protect consumers in environments in
which employees handle food.

Helmets

A hard hat is a type of helmet predominantly used in workplace environments such as

industrial or construction sites to protect the head from injury due to falling objects, impact
with other objects, debris, rain, and electric shock.

WELFARE PROVISIONS

1. Bonus
The employees in the KSCC get bonus according to WHO bonus act 1965

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2. Employee provident fund

A retirement plan for the employees intended to help employees save a portion of
their salary in the event of retirement, disability, sickness or unemployment
3. Kerala coir worker’s welfare fund scheme
This scheme is introduced in January 1989, under the Kerala coir worker’s
welfare fund act 1987. The objective is to establish and operate a fund for the
welfare of the coir workers and self-employed persons in the coir industry in
Kerala. The scheme also envisages payment of pension to coir workers who have
60 years at the time of commencement of the act. Beside contribution from the
govt. of India the fund envisaged contributions from employers, producers of coir
and coir products, dealers and the beneficiaries namely coir workers and self-
employed persons. Under this scheme, educational scholarship for post-metric
education subject to ceiling of Rs.500/-per annum per student and Rs.1500/- for
professional courses. The assistance is to be given in the form of grant. Other
types of assistance include marriage assistance, funeral assistance etc.

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3.4 MARKETING AND SALES DEPARTMENT

Marketing of coir products include marketing mats, mattings, rugs and carpets, rope and
rubberized coir both in the domestics as well as in the export markets.

PRICE

The company has adopted a differentia pricing policy. The price is fixed according to the
government pricing policy.

PLACE

With a nationwide network of 10 showrooms spread across the country, the corporation is
one of the major suppliers to defense establishment and other big government and non-
government sectors in the country, meeting their stringent quality standards and
specifications.

Stores out of Kerala are mainly in Coimbatore , Ahmadabad ,Delhi and Hyderabad. Channels
include direct selling to customers ,for caustic soda there are agencies outside Kerala for
marketing .There are two dealers in Tamil Nadu. The entire functions are done from the
company office at vazhichery and there is no marketing office outside the company. The
dispatch takes place within the company premises.

PROMOTION

KSCC market sector includes both domestic and export markets. The domestic market is
more prominent in terms of value and quality. But to sustain in the market and to increase the
market share promotional activities are important. KSCC have been setting up show rooms
and launching publicity, campaigns, free demonstration, exhibition and mela and
advertisement to promote the use as well as facilitate sale of coir products. Promotional
activities are also done through the company website www.keralacoir.co.in also; this is
mainly done focusing the international market.

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PACKAGING

It has been observed that due attention for packing is not being given. This hampers the
financial performance of the industry. To have better price and to enhance customer appeal it
is now time for the industry to go for good packing system.

COMPETITORS

The major competitor of KSCC in India is the private coir organizations such as:

 Rubco
 Sunidra
 Coirfed

MARKETING STRATEGIES

A strategy is a long-term plan to achieve certain objectives. A marketing strategy is therefore

a marketing plan designed to achieve marketing objectives.

For example, marketing objective may relate to becoming the market leader by delighting
customers. The strategic plan therefore is the detailed planning involving marketing research,
and then developing a marketing mix to delight customers. Every organization needs to have
clear marketing objectives, and the major route to achieving organizational goals will depend
on strategy. It is important therefore, to be clear about the difference between strategy and
tactics. Real marketing strategy provides a roadmap to creating and delivering true value to
distinct group of customers. All successful marketing strategies must begin and end with the
customer-they cannot be an afterthought or taken as a given-so marketers must test their
assumptions about their customers constantly. In this best practice article, the author provides
an in depth marketing strategy overview including identifying market segments, developing
effective messaging and creating a positioning strategy.

CHANNELS OF DISTRIBUTION

The channels of distribution include both one level and two level distribution channels. The
company uses both the types of distribution channels.

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Figure 3.4.1

Manufacturer Retailer Consumer

Manufacturer Wholesaler Retailer Consumer

TRANSPORTATION

The finished products of the coir include yarn, coir products such as Mats and matings,
rubberized bed etc. The major markets are located within the state, outside the state and
abroad. The products are being exported through Cochin port through containers. The road
movement is mainly between Alappuzha and Cochin port for export. The movement of
products within the state is by road and outside the state is a duplex system of road and rail.
Earlier days, sea transport was also made use of. At present, a substantial quality of material
is being transported outside the state through Lorrie.

COMPONENTS OF MARKETING MIX.

The four p components of marketing mix.

The company is effectively managing the four p’s of marketing.

 Product
 Price
 Place
 Promotion

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PRODUCT PRICE
Product variety Lost price

Quality Discount

Design Allowances

Features Payment period

Packaging Credit terms

Sizes

Services

TARGET MARKET

PLACE PROMOTION
Coverage Sale promotion
Assortments Advertising
Hgffff
Locations Sales force
Inventory Public relations
Transport

Fig:3.4.2

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3.5 EXPORT DEPARTMENT

The coir industry has been significantly export-oriented and a valuable foreign exchange
earner. As a pioneering exporter, the company has been exporting its products to United
States of America (USA), England, Saudi Arabia and China. The domestic market is also
large. The products include fibre, yarn, mats, mattings, rugs and carpets, rope and rubberized
coir. Unfortunately, the exports in the recent past show a declining trend. The trend in the
overall volume of sale of coir products significantly changed. Increased competition from
other countries, use of substitute products, traditional methods of production, delay in
executing orders etc. Are some of the major reason mentioned for reduced exports. Presently
the domestic consumption has increased significantly to absorb about 85 percent of the total
production. KSCC has a system to regulate and control the export trade such as minimum
export price etc. to avoid unhealthy competition by foreign businessman.

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3.6 PURCHASE DEPARTMENT

STRUCTURE OF PURCHASE DEPARTMENT

Figure 3.6.1

MD

PURCHASE MANAGER

STAFF STAFF STAFF

FUNCTIONS OF PURCHASE DEPARTMENT

1. To effective plan and control the inventory level.

2. To follow up with suppliers for timely supply and replacement/settlement of claims
and dues from suppliers and closure of purchase order is ensured.
3. To coordinate and assist finance and settlement of bills and recovery of dues if any.
4. To be alert and responsive to the charges in production programme and change in
requirement of material.
5. All relevant data regarding purchase function should be recorded and maintained as
required for the internal use as well as providing the information as per present
provision of right to information act.
6. Serve as information centers in materials.
7. Ensure inventory at an optimum level

PURCHASE PROCCESS

Whenever there is a requirement for raw materials, the purchase department is informed by
the production department through an indent for raw material. Purchase is made from

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approved suppliers only. A purchase order is issued to the supplier detailing the product
specification, date of delivery, price and verification requirement, acceptance criteria,
statutory and regulatory requirements, trace ability requirements etc. the purchase orders are
reviewed by purchase department for adequacy and correctness as the requirements before
communication to the supplier.

PROCEDURE FOR RAW MATERIAL RECEIVING

Raw material receiving by the company by suppliers name , item , description , vehicle
number , load number , quality as per supplier declaration. The incoming raw materials are
inspected by the security in charge of load will not be accepted and the suppliers are duly
informed. The material should inspected by the quality control officers of the time of the
acceptance and ensure the right item should be received from the supplier. The verification
should be recorded in the relevant register. The verification is satisfactory the load should be
kept the warehouse. The inventory, ware housekeeper should be entered the amount of raw
materials received in the respective stores ledger.

RECORD MAINTAINED IN THE PURCHASE DEPARTMENT

1. Purchase requsition
2. Purchase order
3. Supplier Assesment Sheet And Rates

RECORDS REQUIRED FOR TRANSPORTATION

1. Sale bill or invoice

2. Delivery note

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3.7 STORE DEPARTMENT

The company has got a very good store department. Stores department stores materials of
about one to two crores, with include fibres , coir matts, mattings ,juice matts etc. there are a
total of 24 go downs for storage purpose. Each go down is divided into two locations that is
location A and B and both locations and again divided into 1-8 sections for easy handling of
the materials. The materials are stored in the go downs for about 5 years and after this time
periods the products are sold at a 30% discounts.

STEPS IN RECEIVING MATERIALS

1. Receiving the materials purchased.

2. Preparation of tag for the items that is a brief description.
3. Storing of the materials in the respective sections.
4. Issue of materials to the concerned department.
5. Visual inspection: purchase order number and material is checked
6. Preparation of receiving report
7. Store manager checks received material.
8. Preparation of inspection report
9. Payment: inspection report is dispatched to finance department , purchase department
and the originator , after the inspection. Payment is done only after receiving NOC
from the concerned departments.
10. Preparation of rejection report: rejected materials are send back to purchase
department , they will inform the supplier and replace the material.

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3.8 PROJECT DEPARTMENT

Project department is an independent department. The main function of the project

department is the execution of new project for the company. The project department aims at
developing infrastructure and needs of small scale workers

MD

Project manager

Staff Staff

Fig:3.7.1

FUNCTIONS OF PROJECT DEPARTMENT

1. Planning of flexibility study and implementation of new projects.

2. Preparation of detailed report.
3. Preparation of flexibility reports if approved by the management
4. Invitation of tenders through advertisement
5. Evaluation of tenders
6. Agreement
7. Execution
8. Hand over the new projects to operations department
9. Assurance of quality and minimum wages to the workers

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PROJECT UNDERTAKEN USING GEO TEXTILE

Kerala state coir corporation has implemented the following projects using coir geotextile.
Development programme of Govt of Kerala :

 Use of coir geotextile as slit fence erosion control material in water shed management
at Kambanmettu in Idukki district in association with Malanadu development society
Kanjirapally, Kottayam, Kerala.
 Canal side embankment projection in Trissur district of Kerala in association with
Kole development agency in Kerala
 Bund projection in Perumpadappu block panchayath in Malapuram district of Kerala.
 Coir geo textiles as a French drain in road construction in Beypore, Calicut , Kerala.
 Use coir geo textile for revelations of degraded forest land at peerumedu in
association with Peerumedu development society , Idukki, Kerala.
 Use of coir geo textiles for filtration and drainage beath a rigid pavement at le-
meridian hotel complex, Cochin, Kerala
 Village road embankment stabilization over soft soil in Kinakiry of Kerala in
association with Central Road Research Institute, Delhi
 Mine waste dumb protection of iron or mines of seas Goa (soushi & codli mines).
 Embankment slope protection of ROB of NH-5 at Ongole Andhra Pradesh.

FUTURE PROJECTS

 New tufting unit in Kanichekulangara.

 Anticipating a new project from briquetting can under the soil, it has the capacity
to hold the moisture and through which farming is possible even in less moisture
areas like deserts.
 Another project under research is the efficient usage of waste materials from the
coir production.
 Yarn spinning or blended yarn is another project under research. This can be used
to produce hybrid products. Jute blending is the type of blending that is been
practiced by other industries but it is highly expensive. So if blended yarn are
introduced it will be beneficial to the company.

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3.9 PPSS DEPARTMENT

THE NEED FOR PPSS

The purchase price stabilization scheme (PPSS) was formulated as a concreter device to
prevent the crisis in coir industry. A matter of great concern had been that the coir worker has
always been exploited; lot often denied fair wages and fair price for their produce, by
unscrupulous middlemen or depot owners, who took advantage of their financial and
marketing limitations by denying them their reasonable price. The ill-fated coir worker has
been inextricably bonded to the middlemen for their sustenance. Their standard of living was
very pathetic. Scheme like distress purchase scheme, provided on time relief, but turned out
failure to address and solve the trouble in sector on continuous basis.

Alarmed by the fight of these small and scattered producers, PPSS was originated in 2007.
PPSS addresses the chronic problems that have been confronting the coir industry in a
significant way by ensuring.

 Continuous production orders to the small scale manufacturing sector.

 Responsible and fair prices for the produce of this small scale producer.
 Better platform to these producers to sell their products.
 Prompt payment for suppliers by these producers.
 The effective contribution in market during the low demand price.
 Safeguard interest of small scale procedures.
 Healthy business practices between small scale procedures and exporters
The cycle of production, marketing and realization of proceeds is ensured under PPSS

OPERATION OF PPSS

Coir one of the major cottage industries in Kerala, was largely unorganized and the
procedures were scattered and more than 90 per cent of them concentrated in the densely
populated Alappuzha district.

A unique system was formulated for implementation of PPSS.

Firstly , the small scale units was identified and inspected and data compiled of the number of
workers, number and type of loom, production capacity etc. which came around 7500 units.

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These units were divided and constituted and registered into about 75 coir products
manufacturing society. This effort created an organized significant production base. Under
this scheme the exporters place purchase orders with Kerala state coir corporation , which in
turn arranges supply through these societies , who is paid predetermined price and they in
turn pays fair wages to their workers. An intensive in the form of discount in price is offered
to the exporters for participating in the scheme. Hence , now these societies gravitate around
Kerala state coir corporation that sustains them with supply orders , financial support ,
marketing of produce and timely payment at fair prices. Number of workers:10

PROGRESS OF PPSS SINCE ITS IMPLEMENTATION

PPSS has provided to be very effective scheme for combating the ill practices in coir sector
and ensured fair wages and fair prices to the products of small scale manufactures.

The major achievements made under this scheme

 The turnover made under PPSS has increased more than 80% every year since
its implementation in 2007.
 During the low demand period in market, the scheme has successfully
maintained employment, supply order and prompt payment to societies, thus
proving it as, blessing to small scale producers.
 The wages structures of the workers has been revised time to time, to ensure
fair earnings.
 New exporters have enrolled in this scheme, perceiving the benefit, they are
getting from it.

The scheme has ensured the support and consideration of coir corporation to these societies
coir corporation works as a platform to settle societies grievances.

The following are the benefits of PPSS scheme in general

 Database of production centers , types of looms , workers.

 Regular supply orders for small scale producers
 Small scale producers have been brought under corporative fold
 Ensure fair wages to the coir workers.
 Financial support the small producers.

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 Assured marketing of products the small scale producers

 Incentive to the exporter.

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CHAPTER – 4

SWOT ANALYSIS

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4.1 SWOT ANALYSIS

SWOT analysis is an acronym for strengths, weaknesses, opportunities, and threats and is a
structured planning method that evaluates those four elements of an
organization, project or business venture. A SWOT analysis can be carried out for a
company, 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 in the 1960s and 1970s using data
from Fortune 500 companies. However, Humphrey himself did 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.

 Strengths: characteristics of the business or project that give it an advantage over

others
 Weaknesses: characteristics of the business that place the business or project at a
disadvantage relative to others
 Opportunities: elements in the environment that the business or project could
exploit to its advantage
 Threats: elements in the environment that could cause trouble for the business or
project

Identification of SWOTs is important because they can inform later steps in planning to
achieve the objective. First, decision-makers should consider whether the objective is
attainable, given the SWOTs. If the objective is not attainable, they must select a different
objective and repeat the process.

Users of SWOT analysis must ask and answer questions that generate meaningful
information for each category (strengths, weaknesses, opportunities, and threats) to make the
analysis useful and find their competitive advantage.

It is the factors that determine the course of action to ensure the survival or growth of the
firm. The Strengths, Weakness, Opportunities and Threats identified are the following:

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STRENGTH

Strength is a resource advantage relative to competitors and the needs of the markets a firm
serves or expects to serve. It is a distinctive competence when it gives the firm a comparative
advantage in the market place. Following are the strengths of coir corporation

• Good reputation and a well-established brand name of the firm

• Company offers wide variety of innovative products with high quality

• Quality driven and environment-friendly production and operation facilities

• High-tech manufacturing plants

• All products are eco-friendly

• Well established customer base in India and abroad

• Regional offices helps in better marketing

• Efficient management of available resources to maximize productivity

• Earns valuable foreign exchange through exports

• Good working atmosphere

• Good warehousing facility

• Financial assistance from government and other resources

• Coir corporation provides various welfare measures to employees to increase

employees morale and for employee retention

• ISO certification

• Full mechanized dye house

• Easy access of transport facilities

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WEAKNESSES

A weakness is a limitation or deficiency in one or more resources or competencies relative to

competitors that impedes a firm’s effective performance. Following are the limitation of coir
corporation:

• Absence of latest technology in departments other than production

• Lack of professionalism

• Lack of employees in the organization for its smooth functioning

• Research and development activities are not proper

• High cost of capital needed for purchases of semi-finished goods. Now the company
is mainly concentrated on outsourcing that is they purchase semi-finished goods from
the sub-urban areas of Alleppey district and convert the same into finished goods.

• Higher cost of furnishing and fabrication

• Low wage structure

• Advertisement is poor

• Employees are not satisfied with remunerations

• As it is Government Company, the decision making need so many formalities. It

makes delay in the decision making especially in implementing salary increase and
other benefits to employees.

• All decisions are taken by the top level managers thus the commitment of workers get
reduced

OPPORTUNITIES

An opportunity is a major situation in a firm’s environment. Identification of a previously

overlooked market segment, changes in competitive or regulatory circumstances,
technological changes and improved buyer or supplier (next page)

Relationships could represent opportunities from the firm. Following are the opportunities of
coir corporation:

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• Company has facility to expand and explore in newer markets

• Availability of raw material from various sources

• Export opportunities for coir products

• Scope of coir products as an eco-friendly item

• Financial assistance from government

• Diversifications of products have been a success so far having a good product

range covering all the products that can be offered.

• Measures have been taken for developing a good dealership network, good

opportunity to market more products through these networks.

• Introduction of new tuff ling unit. If tuff ling units are introduced then KSCC

don’t have to depend on Govt and PPSS

• The company has a very good location and infrastructure for export

• The company maintains up-to-date knowledge about market and its responses

THREATS

• Competition from synthetic fiber

• Cheaper coir products from other countries like Sri Lanka, Thailand and Indonesia

• Increase in the price of raw materials

• Competition from the rival firms, trying to introduce newly launched products.

• Innovative products from the companies making the existing products obsolete

• High cost of shipping of products for export.

• Competition from the private sector

• Shift from coconut plantation to other crops

• Changing policies as the government changes

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• Non availability of raw materials in time

• Severe competition from other countries like Sri Lanka, Thailand & Indonesia

• Scarcity of raw materials like fibre, coir etc.

• Presence of other yarn like jute, cotton etc.

FUTURE PLANS OF THE COMPANY

• New product like coir tea trays

• Market diversification

• Development of existing market

• New technology for product

• E-Business

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CHAPTER – 5

FINDINGS

SUGGESTIONS

CONCLUSION

BIBLIOGRAPHY

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5.1 FINDINGS’

1. Coir corporation is a well-established coir products manufacturer in Kerala. It plays a

vital role in finding markets and promoting new business ideas.

2. Coir corporation produce high quality products as it is an ISO certified company.

3. Coir corporation is an example of efficient management. So, it has good reputation in

the coir industry

4. The main departments of coir corporation mainly include HR department, Finance

department, production department, and marketing department.

5. Promotional activities of the coir corporation are very poor. But, they are slowly
improving their promotional activities

6. Coir corporation has a large variety of coir products

7. Coir corporation buy products of societies and market it.

8. The location of the organization is very helpful for their production

9. There was consistent increase in exports of coir corporation products.

10. Major competitors are William good acer, Sundira, Rubco etc.

11. Coir board has taken many export promotion measures to improve the export
performance of coir products

12. Coir industry has been experiencing shortage of fiber

13. Absence of product development and diversification has left the consumers with
limited choice

14. Their coir products are in demand in the international market because of their special
attributes like fitness, price, craftsmanship, quality, attractiveness

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5.2 SUGGESTIONS

• Product diversification will give the customer more choices

• Development of market driven products will give a competitive advantage to the

company.

• Alternative technology-driven strategies may be adopted in procurement,

manufacturing and production. It will help to improve the productivity.

• Development of new logistic concepts in raw material procurement storage and

delivery.

• Reengineering the working of coir for an overall positive change

• Expansion of sales outlet network

• Introduction of new product packaging

• Technological up gradation is essential to face stiff competition

• Investment in the coir sector by small entrepreneurs should be encouraged

• The R&D should focus on modernization of infrastructure

• Adequate promotional measures to talk about coir products in the international

market is also an essential element

• Employees may be appointed with immediate effect in the reported vacancies.

• Coir board should arrange to conduct more trade fairs / exhibitions at national and
international level.

• Above all, constant monitoring of the fast changes in the in the international market is
very essential.

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5.3 CONCLUSION

The Kerala state coir corporation Ltd is a fully owned Government company. KSCC’s
product have national reputation for quality and the company gives high time to make
innovations in technological up gradations as well as organizational improvements which had
helped it to face problems quite efficiently. The corporation also has a capability to
manufacture loom mattings in various widths. In the machine management so as to give out
the best products possible. A highly successful, statistical quality control device has been
evolved for on line production, quality check-up and also to ensure timely delivery of goods.

The Kerala state coir corporation of co-operative societies engaged in the marketing of coir
and coir products is entrusted with the task of marketing the products of the coir co-operative
societies. It provides sustenance to workers especially women. Coir industry is one of the
most important agro based employment oriented traditional industries in India. Coir
industries contribute a major share in in the world market. This study reveals that coir
products have a great orientation in the world market. Coir Corporation is known for its high
quality product at low price.

Coir Corporation has changed a lot in the past years. Today it is using better technology and
is exploring new markets. The organization study at Coir Corporation has been beneficial for
me in all aspects. The study was an opportunity to familiarize with the practical side of an
organizational function. It provides an idea about finance, personal, marketing and production
departments of Coir Corporation.

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5.4 BIBLIOGRAPHY

Books Refered

[1]. Kotler Philip, (2009), Marketing Management, 12th edition

[2]. Z Ikmund G William, (2005), Business Research Methods, publisher Tata McGraw
Hill Publishers: New Delhi. 8th edition.
[3]. Kothari.C.R,(2007)Research Methodology: Methods and techniques, New Age
International Publishers, New Delhi, Reprint edition
[4]. Rao VSP, (2008), Human Resource Management, publisher Excel Books New
Delhi 1st edition.
[5]. Kotler, Amstrong,” Principles of Marketing”, Pearson Education, 10th Edition

Company Reference

 Company Publications
 Company Brochures
 Annual report
 Research reports

Webliography

 www.keralacoircorporationltd.com
 www.coircraft.com
 www.wikipedia.com

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