"AN ORGANISATIONAL STUDY OF THE SENGUNTHAR

MILLS (P) LTD, TRUCHENGODE"

A Summer Training Report

Submitted By

Mr. D. VIGNESHRAJ

Reg. No: 23MB059

DEPARTMENT OF MANAGEMIENT STUDIES

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

Of

MASTER OF BUSINESS ADMINISTRATION

MUTHAYAMMAL ENGINEERING COLLEGE

RASIPURAM

SEPTEMBER 2024

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 BONAFIDE CERTIFICATE

Certified that this summer training report title “AN ORGANISATIONAL STUDY OF
THE SENGUNTHAR MILLS (P) LTD, TIRUCHENGODE” is the benefited work of Mr.
D.VIGNESHRAJ Reg No: 23MB059 who carried out the work under my supervision.
Certified further that to the best of my knowledge the work reported does not form part of
any other Summer Training Report or dissertation on the basis of which a degree or award
was conferred on an earlier occasion on this or any other candidate.

------------------------------------------- ------------------------------------
Signature of the HOD Signature of the Guide

Submitted to the Department of Management Studies, Muthayammal Engineering College

Rasipuram affiliated to Anna University for the examination held on ------------------------

----------------------------- ------------------------------
Internal Examiner External Examiner

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 TABLE OF CONTENTS

PAGE
S.NO TITLE
NO

1. INTRODUCTION 4

1.1 INTRODUCTION ABOUT THE TEXTILE COMPANY 4

1.2 OBJECTIVES OF THE COMPANY 10

2. ABOUT THE COMPANY 11

3. COMPANY PROFILE 12

3.1 FUNCTIONAL UNITS 20

3.2 PRODUCTION UNIT 22

3.3 ORGANIZATION CHART 26

4. DEPARTMENTS 27

4.1 PRODUCTION DEPARTMENT 29

4.2 HUMAN RESOURCE DEPARTMENT 42

4.3 PURCHASE DEPARTMENT 43

4.4 MARKETING DEPARTMENT 45

4.5 FINANCE DEPARTMENT 46

5. CONCLUSION 48

6. BIBLOGRAPHY 49

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1.1. AB0UT THE TEXTILE INDUSTRY

INTRODUCTION

The birth of cotton textile industry can be traced back to the year I818, when for the first
time a mills was started in Calcutta with English capital, but its real foundation was laid in
Bombay with a mills set up in I853 under Paris management. Early years marked a repaid
progress and the number of cotton mill increased up in country centres like Ahmadabad,
Sholapur and Nagpur.

The textile industry is one of the oldest in the world. The oldest known textiles, which date
back to about 5000 B.C., are scraps of linen cloth found in Egyptian caves. The industry at
present the cotton textile industry is one among the largest industries of our nation economy.
In 1951. The total number of mills in this industry was only 378 of which 103 were spinning
Mills and 275 were composite mills (both spinning and weaving). The numbers of cotton
textile mills were increased to 1051 in 1990 this 770 were spinning mills and 281 were
composite mills. The total investment provides direct employment to over 150 lakhs people
accounting for around 20% of total industrial output and contributing for about 25% of our
total exports in the year 1997.

It was primarily a family and domestic one until the early part of the I 500s when the first
factory system was established. It wasn’t until the Industrial Revolution in England, in the
18th century, that power machines for spinning and weaving were invented. In 1769 when
Richard Arkwright's spinning frame with variable speed rollers was patented. Water power
replaced manual power (Negus, 1982).

The twentieth century has seen the development of the first manmade fibres (rayon was
first produced in 1910). Although natural fibres (Wool. cotton. silk. and linen) are still used
extensively today, they are more expensive and are often mixed with manmade fibbers such
as polyester, the most widely used synthetic fibber. In addition, segments of the textile
industry have become highly automated and computerized (ATMI, 1997a).

4
 The textile industry is characterized by product specialization. Most mills only engage in
one process or raw material. For example, a mill may be engaged either broadloom weaving
of cotton or broadloom weaving of wool, similarly. Many mills specialize in either spinning
or weaving operations, although larger integrated milIs may combine the two operations.

These large mills normally do not conduct their own dyeing and finishing operations.
Weaving, spinning, and knitting mills usually send out their fabrics to one of the
approximately 500 dyeing and finishing plants in the United States (EPA, 1996).

Textile industry

The Indian textile and the clothing industry occupy a unique place in the Indian economy.
It contributes about 4% of GDP and 14% of industrial output. As the second largest employer
after agriculture. The industry provides direct employment to 35 million people including
substantial segments of weaker sections of the society. In spite of having the strength of being
the largest cotton base and the abundance of the availability of low cost labour, the export
performance of the industry is far from being competitive. The competitiveness constraints
are directly related to poor per capita productivity resulting in inefficient performance.

The government must target labour market rigidities to maximize gainful

employment in the textile sector.

India's textile and apparel industry is all set for an overall as the new National Textile
Policy will soon be placed before the Cabinet for approval. The government has already
accepted an Rs.60 billion special package for this sector with an aim to create 10 million new
jobs in the next three years, attract investments of $11billion, as well as generate an
additional $30 billion in exports. The key measures that have been approved include
additional incentives for duty drawback scheme for garments, flexibility in labour laws to
increase productivity. And tax and production incentives for job creation in garment
manufacturing. As part of the reform agenda. The Ministry of Textiles would also seek to
lower excise duty on man-made fibre to 6 per cent from the existing 12 per cent. Lt has also
placed on the table other specific interventions to encourage value addition so that India
becomes an exporter of value-added (garment) products rather than just raw material (fibre
and yarn).

Maze of labour regulations

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 Undoubtedly, the textile package has set the ball rolling for a much-needed reform agenda.
The organized textile industry has been facing a slowdown for quite some time. Due to which
a large number of mills are reported to have shut Workers who have been displaced are left
with no choice other than lo move to the unorganized segment or work on a contractual basis.

It has been reiterated time and again that the stringent labour laws and the cumbersome
nature of compliance with labour regulations and norms act as a barrier to growth of the
manufacturing sector. The textile industry is affected the most owing to its labour-intensive
nature and hence high potential to absorb people. While the government has agreed to reform
the archaic labour laws to generate more employment in this industry, in some cases it may
require changes In the Legislation, which is a challenge in itself. The system of labour
regulations in India is quite complex, with over 200 labour laws. Including 52 Central Acts.
In their book India‘s trust with Destiny. Jagdish Bhagwati and Arvind Panagariya maintained
that it is impossible to comply with 100 per cent of the labour laws without violating at least
20 per cent. Each State has its own way of dealing with the industry and making amendments
in the labour laws.

Among many laws, the biggest challenge is to bring reforms in the Industrial Disputes Act
(IDA). 1947, that forms the basis for regulation of job security in the organized
manufacturing segment, due to strict dismissal norms laid down under it. As per Chapter V-B
of the Act, any firm employing 100 or more workers has to seek permission from the labour
department, with jurisdiction over the firm, before any layoffs or retrenchment. The
concerned labour department rarely gives such permission, even in cases where the unit is
unprofitable and on the verge of closure As a result. The industry may find it advantageous to
either employ people on a contractual basis or shift to the unorganized segment.

Contract workers as an expedient

The restrictive impact of this act and also other regulations impinge largely upon
industries such as textiles majorly employing unskilled or low-skilled workers. The problem
becomes more intricate knowing that the textile industry has significant number of women
workers on the rolls, which may require modifications in the existing laws along with new
schemes and incentives to retain them.

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 Statistics show that India's textile industry is the second largest employer after agriculture.
Providing direct employment to around 45 million people. The sector also accounts or 14 per
cent of India's total industrial production. Which is Close to 4 per cent of the country’s gross
domestic product? The annual rate of growth in employment in the organized sector has been
modest at 2 per cent since 2000-20201 with some signs of deceleration. Especially from
2007. A period that coincided with the removal of the Multu fibre Arrangement that governed
world trade in textiles and garments with quotas on exports from developing countries to
developed countries. However, an increase in employment is accompanied by a growing
share of contract workers in total workers from 8.42 per cent to 13.45 per cent (see grap hic).
The trend in organized manufacturing overall is similar to that observed in the textile sector,
where the share of contract workers has risen from 21.3 per cent to 34.6 per cent during this
period.

An increasing in-formalization of employment within the formal sector could be explained

by the labour market rigidities and growing competition. Among other factors. The industry
may employ temporary or contract workers in a bid to escape Chapter V-B of the Act despite
the contract labour system being more expensive. Furthermore. The share of contract workers
in total workers is much higher in firms employing less than 100 workers, and not falling
under the ambit of Chapter V-B of the IDA. The share has significantly gone up in two
segments, viz. preparation and spinning of textile fibres and weaving of textiles. From 8.21
per cent to 20.72 per cent and 18.38 per cent to 24.95 per cent in a 'span of11 years. It is
much higher compared to the firms employing more than 100 workers falling outside the
domain of Chapter V-B.

This clearly indicates that the organized industry could be following an escape route by
employing contract workers to replace the regular workers. Since firms employing less than
J00 workers do not fall under the ambit of the Chapter V-B they have an incentive to remain
outside by hiring more contract workers. On the other hand. The firms which have already
crossed this threshold of 100 workers have a much lower incentive to hire contract workers.

8
Towards gainful employment

Such informal arrangements may hamper the industry's growth in productivity and
development in the long run. The trend, which has been continuing since the nineties, needs
to be reversed. The Economic Survey 2016 has rightly pointed out that stringent labour
regulations act as "regulatory cholesterol". Inhibiting the industry from generating
employment and hiring regular workers. It is therefore important that as part of the textile
package' the government should at least try to reduce, if not remove labour market rigidities
for creation of gainful. Employment. Provision of better wages to casual workers, along with
social security and other benefits, will contribute to higher productivity. The industry would
also avoid hiring contract workers, be able to reduce contracting cost and move towards
expansion. Some propositions have been in the offing, such as considering fixed-term
workers on a par with permanent workers in terms of wages and allowances. Providing tax
benefits to firms employing permanent workers for at least 150 days, making provident fund
contribution by employees' earning less than Rs. 15,000 per month optional, and the
government contributing on behalf of the employer towards Employees Provident Fund
Organization for the first three years.

These initiatives. If implemented. Can go a long way in reviving growth and generating
gainful employment n the textile industry. The government must also focus on bringing
amendments in the IDA which may otherwise act as a stumbling block. Rajasthan, Gujarat.
Madhya Pradesh and Haryana are making some headway in this direction. There are
provisions to reform labour laws in the new Textile policy. It is hoped that the Ministry of
Textiles under Smriti Irani will get the new National Textile Policy approved and speed up
the reforms. Much depends on how capably she would fast-track flexibility in labour laws
and regulations with cooperation from the Ministry of Labour and Employment.

Strengths of Indian Textile Industry:

A strong raw material production base. A vast pool of skilled and unskilled personnel,
cheap labour. Good export potential and low import content are some of the salient features
of the Indian textile industry. This is a traditional. Robust. Well- established industry.
Enjoying considerable demand in the domestic as well as global markets. The export basket

9
includes a wide range of items including cotton yarn and fabrics, man-made yarn and fabrics,
wool and silk fabrics, made-ups and a variety of garments.

• Huge textile production capacity

• Efficient multi-fibre raw material manufacturing capacity
• Large pool of skilled and cheap work force
• Entrepreneurial skills
• Huge export potential
• Large domestic market
• Very low import content
• Flexible textile manufacturing systems

Weaknesses of Indian Textile Industry

Quota constraints and shortcomings in producing value-added fabrics and garments and
the absence of contemporary design facilities are some of the challenges that have impacted
textile exports from India.

• Increased global competition in the post 2005 trade regime under WTO
• Imports of cheap textiles from other Asian neighbours
• Use of outdated manufacturing technology
• Poor supply chain management
• Huge unorganized and decentralized sector
• High production cost with respect to other Asian competitor

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1.2. OB.JECTIVES OF THE COMPANY

The main objectives of the company are:

1. To identify and rank the factors of attrition in company based on accumulative

literature review and secondary data.
2. To explore and analyze the dimensions of attrition in company based on primary data
collected from field survey.
3. To identify and explore the dimensions of employee retention in company based on
primary data collected from field survey.
4. To be interest in all the business of processing and sinning mill proprietors and dye
markers.
5. To purchase or take on lease land and plant to cultivable cotton or fibers producing
plants on the same and to gibe advances to best or other encourage the production of
the said products.

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2. ABOUT THE COMPANÝ:

SENGUNTHAR MILLS (P) LTD

. SENGUNTHAR MILLS is one of the famous textile mills located in Namakkal district
of Tamilnadu. It has it unit positioned at No: # 194/1 Pallipalayam road, Varapalayam.
Thokkavadi, Kutchipalayan (Po), Tiruchengode in Namakkal. It corporate min unit is located
at Tiruchengode.

It planned to set up a viscose staple fibre yarn unit at Namakkal n Tamilnadu in the year
2006 and estimated the cost of the project for Rs. 18crorewhich was completed by the month
of November in the year 2006. The unit was targeted to have the manufacturing capacity of
25,000 spindles, its machinery tools are of modern standards and principles which are
supplied by laxmi machines of Coimbatore.

Address

194/1, Pallipalayam road,

Varapalayam,

Thokkavadi.

Kutchipalayan (Po)

Tiruchengode - 637215.

Namakkal

India.

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3. COMPANY PROFILE

MD'S MESSAGE

As textile industry is worker intensive. They need to maintain better work culture to
achieve results, Sine their work force comes from different walks of life they would like to
impart the basic training and advanced techniques like 5STechniques become utmost
necessity to upkeep their machineries and working are neat& clean to facilitate their workers
to work peacefully. 5S techniques help to utilize the available are efficiently. In view of the
above factors, they decided to implement 5S principles in their company.

VISION

To achieve sustained growth, which consistently satisfies the needs and Expectations of
the customers by adopting 5 ‘S’ standards with good spirit and team work? Their Vision is to
build Total Brand Value by innovating to deliver consumer value and customer leadership
faster, better than their competitors. This Vision is supported by fundamental principles that
provide the foundation for all of their activities.

Attaining their Vision requires superior and continually improving performance in every
area and at every level of the organization by sustaining 5 'S" principles.

Their performance will be guided by a clear and concise strategic statement for each unit
and by an ongoing Quest for Excellence within all operational and staff functions.

This Quest for Excellence requires dedication, involvement, developing and retaining a
diverse workforce of the highest calibre. To support this Quest. Each function employs
metrics to define, and implements processes to achieve, world class status.

5S System

They are the Winner of 5 ABKAOTS 5’s’ Trophy. Since 2009 they are following Japanese
5'S' techniques in their whole manufacturing units.

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MANAGEMENT

SENGUNTHAR MILLS (P) LTD Company engaged in the business of yam

manufacturing was incorporated in the year 1980 on 31.03.1980. The unit is located at a place
around 5 KM from TIRUCHENGODE Town.

The project was originally conceived by a group of people with an authorized capital of Rs
70.00 lakhs, with major share holders. The Company initially availed a Term Loam assistance
of Rs. 120.00 lakhs from Tamilnadu Industrial Investment Corporation Ltd (TIIC). Namakkal
Branch. Towards the construction of factory building and purchase of Machinery... This delay
in commencing the commercial production and the dull climate prevailed in the yarn market
during the resulted in the Company incurring substantial loss.

The Company availed a fresh term loan of Rs.80.00 lakhs from TIIC for installation of
additional ring frames and other Machinery including Humidification Plant and Construction
of Additional Buildings including an Extra Go down, and a Building for Cone Winding
Section. The spindle capacity was raised from 4,072 to 6,592 and this was completed in the
month of December 2014. The Company had also imported one Auto Comer machine at a
cost of Rs. 125.00 lakhs with their own funds.

Our Bank sanctioned a 0CC limit of RS 80.0O1akhs on 27.12.02. Later on our bank
financed their Expansion project with Term Loan of Rs. 880 lakhs for increasing the spindle
capacity to 12.096 and weaving capacity of 18 Nos Silzer P7100 Auto Looms and also
increased the working capital limits to RS. 200.00 lakhs. Subsequently the Company also
installed two Wind Mills during March 2005 for which our bank has financed the Company
(MTL III Rs. 976lakhs). Recently the company had completed two expansion projects (In
which spindle age Capacity is increased to 25200 spindles and addition of 22 Air jet looms
and sizing warping machine). Regarding this our bank sanctioned two term loans of Rs. 1950
laths (MTL- IV) and Rs. 440 laths (MTL-V).

The company is well managed by the Managing Director and the other Directors who
were all well renowned businessmen and prominent civil Contractors especially in the
construction of Government projects for more than 35 years Company.

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Sengunthar Mills has 5 directors:

The names of the Sengunthar Mills directors are Kandasamy Rajasekaran, Rajaksekaran
Vijayakumari, Rajasekaran Vignesh, Tiruchengode Tiruvengadam Gunasekaran, and
Tiruvengadam Gnanasekar.

Sengunthar Spinning Mills (P) Ltd Company engaged in the business of yarn
manufacturing was incorporated in the year 2011 on 29.09.2011.The unit is located at a place
around I5 KM from Tiruchengode town.

The projects were originally conceived by a group of people with an authorised capital of
Rs. 70.00 lakhs with major share holders. The Company initially availed a Term Loam
assistance of Rs. 120, 00 lakhs from M/s TamilNadu Industrial Investment Corporation Ltd
(TIC). Namakkal Branch, towards the construction of factory building and purchase of
Machinery... This delay in commencing the commercial production and the dull climate
prevailed in the yarn market during the resulted in the Company incurring substantial 1oss.

The Company availed a fresh tern loan of Rs.80.00 Lakhs from TIIC for installation of
additional ring frames and other Machinery including Humidification Plant and Construction
of Additional Buildings including an Extra Godown. And a Building for Cone Winding
Section. The spindle capacity was raised from 4.072 to 6,592 and this was completed in the
month of December 2014. The Company had also imported one Auto Coner machine at a cost
of Rs. 125.00 lakhs with their own funds.

Our Bank sanctioned an OCC limit of Rs. 80.00lakhs on 27.06. 13. later on 07.01.16, our
bank financed their expansion project with Term Loan of Rs. 880 lakhs for increasing the
spindle capacity to 12,096 and weaving capacity of 18 Nos Silzer P7100 Auto Looms and
also increased the working capital limits to Rs. 200.00 lakhs. Subsequently the Company also
installed two Wind Mills during March 2005 for which our bank has financed the Company
(MTL III Rs. 976lakhs). Recently the company had completed two expansion projects (In
which spindle age capacity is increased to 25200 spindles and addition of 22 Air jet looms
and sizing & warping machine). Regarding this our bank sanctioned two term loans of Rs.
1950 lakhs (MTL- IV) and Rs. 440 lakhs (MTL-V).

15
 The company is well managed by the Managing Director and the other Directors who
were all well renowned businessmen and prominent civil contractors especially in the
construction of Government projects for more than 29 years Company.

In Sengunthar mills. The total strength of human resources is 360. They are classified into
three categories.

1. Officers

2. Staff personal

3. Workers

CLASSIFICATION OF WORKERS/ EMPLOYEES

1. Permanent workers

2. Temporary workers

3. Casual workers

FORMAT FOR SHIFT SYSTEM

Shift. Time

Morning Shift. 6.00 am to 2.00 pm

Afternoon Shift. 2.00 pm to 10.00 pm

Full night Shift. 10.00 pm to 6.00 am

General Shift. 8.30 am to .6.00 pm

Office working hours. 9.00 am to 5.00 pm

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Recruitment and promotion policy:

The company has a total number of 360 employees of whom 16 are office staff and 260
workers. Besides there are 84 casual workers how are called to AS and when require...

As and when need arises, the company recruits skilled and unskilled workers. Recruitment
is done by general manager of the company in consultation with the head of the conceded
department and the personal manager.

Training:

The company provides training to every worker before he/she is posted as a permanent
employee. But training is not given to all office staff.

Co-operative society:

The company maintains a co-operative society, which provides loan facilities to the
employees, so as to meet their additional, financial needs from their company with it
approaching others. They lend money up to Rs. 15,000/- The Company also runs other
welfare programs for the benefit of the employees. These include Consumer store, welfare
funds medical benefits. Transport facility and recreation club.

AGE LIMIT

People who are the age of below eighteen and children are not employed to work in the
factory.

EDUCATIONAL QUALIFICATION

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 The educational qualification in 8th (or) 10th standard is must. Supervisor's qualified
Diploma in Textile Technology. For electrical department employees qualified industrial
training institute. Diploma holders Maintenance Department qualified Industrial training
Institute.

CANTEEN

The management runs a canteen for staffs at subsided rate with a policy of no profit no
loss basis. The management provides basis development like furniture electricity and gases
all other cooking equipment the canteen.

Also, the canteen has a small size dining hall. This can accommodate at least 120 persons
at a time. First aid appliances are provided to the factory workers.

Transport facility:

Company is providing transport facility to the employees for coming to the factory from
nearby bus stand to company premises. Company owned bus for taking the employees and
staffs from the nearby villages in the morning and sending them at evening.

Welfare funds:

Company opens a welfare funds for the welfare of the employees that collect Rs.10-1 from
employees and return to them at the time of retirement with 15% if interest. They give loan
up to 5000 to 15000 employees for meeting their financial needs of the employees retired
voluntarily due to decease he will get 50% of one day wages of every employee.

LEAVE FACILITY

A. LEAVE CARD SYSTEM

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 Each employee is provided a leave card and kept in the custody the department.
Supervisor if an employee wants to go leave he has to update his leave card and get it signed
his immediate supervisor (or) HR department head.

B. ATTENDANCE INCENTIVE SCHEME

. In order to motivate the employees and to minimize the absenteeism SENGUNTHAR

MILLS has introduced many new schemes which are as follows:

If a person workers without availing has in month in entitled to Rs. 100 as attendance
incentive. It is called monetary incentives.

Non-monetary incentive they are putting the name of the employees and his Working
section name on the notice board for that whole month which make others to motivate and
encourage them to work without taking leave.

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HIGHLIGHTS OF TIIE MILL

1. Name of the company. : SENGUNTHAR MILLS (P) LTD

2. Address. : SENGUNTHAR MILLS (P) LTD

#194/1, PALLIPALAYAM ROAD.

VARAPALAYAM. THOKKAVADI

KUTCHHIPALAYAM (PO).

TIRUCHENGODE (TK),

NAMAKKAL (DT)

. TAMILNADU- 637215, INDIA

3. Registered office. : Coimbatore

4. Registered state. : Tamil Nadu

5. Years of Company Started. : 1980

6. Type of Industry. : Spinning Mills

7. Product dealing. : 100% cotton yarn &grey fabric

8. Financial Institutions supporting the mill . : Indian Bank

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3.1. FUNCTIONAL UNITS OF SENGUNTHAR MILLS UNIT

• Warping and Sizing Unit

• Weaving Unit

SPINNING UNIT

Raw Materials for the Unit

The committed experience in cotton spinning works. they involve with meticulous care in
selection and purchase of raw cotton at selected locations where good quality cotton fibres
can be assured, Moreover raw cotton are selected from TMC approved ginning units in order
to ensure fineness of fibres.

They purchase cotton bales during peak season of availability and stored in well- equipped
and spacious Godown with 10,000 sq.ft area that is adequate for storing cotton bales with
precautionary procedures in order to check out damages and loss due to contaminations with
humidity and pests. The collection and storing process of the unit ensure consistent quality of
cotton throughout the year.

Production Process with Modern Technological Development

As their unit has devoted mainly on production of superior cotton yarn materials with
uniformity products, their team adopts and incorporates the most advanced technology with
hi- tech machineries.

Procured cotton bales has been undergone sequence of processing phases like eliminating
contaminations in cotton by cleaning through well aerated Blow- Room. With the expertise
and contemporary machineries coupled with well-coordinated infrastructural arrangements.
Carding. Drawing. Combing. Roving and Spinning of cotton is done with perfection.

The ultra-modem auto comers in their mill have enabled capability to manufacture
unmatched cotton yarn from count Ne20s to 60s. This unit these ways has garments expert
sing in progressing and production of Spander core spum yarn with enhanced technological
capability.

21
Spinning Specifications

• Automated Blow room with contamination cleaners.

• Trutzsechler and Lakshmi cards.
• Rieter Comber and Draw Frames.
• LR6 S Ring Spinning Frames
• Schlathorst 338 Gold and AC 5 Auto coners with Uster Quantum 2 SIRO cleaners
• Labs equipped with Uster Testing instruments
• Fully Automated Batliboi Humidification Plants

In order to ensure the best performance in weaving process. The Sizing unit considers all
parameters like pickup. Stretch, moisture and other appropriate characteristics that guarantee
high quality of warp beams and sized beams.

22
EXPORTS

AS an integral Marketing they explored intonations market and C\port the products to
Singapore. Egypt. China, Thailand and Vietnam.

Our Product Range

• Cotton.
• Cotton yarn.
• Fabric
• Home textiles.
• Agri products.

SENGUNTHAR MILLS (P) LTD., initially a spinning unit incorporated on 31.03.1980 as

a Company with the Register o Companies. Coimbatore the Company is engaged in spinning
of cotton yarn from raw cotton and weaving of cotton fabric. The industrial scenario of the
cotton & cotton fabric is as under.

• Indian textile and clothing industry has embarked on a vision of capturing market
work USD 110 billion by FY 2012 (domestic household consumption + exports)
from USD 52 billion in FY 2006- The share of domestic household market
potential is estimated to be USD 60 billion and the FOB value of exports estimated
at USD 50 billion.
• The above growth would translate into value to production of the industry
(including no household consumption) to increase at 16% per annum to around
USD 76 billion in FY 2012 from the level of USD 27 billion registered in FY 2005.
• 5.7% annual growth world trade textile and clothing (T&O result in the size of the
world trade in T&C to grow to a level of around USD 677 billion in the calendar
year (CY) 2011 and further to USD 700 billion in CY 2012 from the level of USD
479 billion registered CY 2005.

23
3.2. PRODUCTS MADE BY SENGUNTHAR MILLS (P) LTD

COTTON YARN

India being the least-cost producer of cotton yarn, its cotton yarn industry is globally
competitive. However, the industry is capital intensive, which has led to fragmentation. As a
result, none of the players has more than 3% share of the total industry capacity. Thus, there
is intense price competition in the industry. However, the removal of quota restrictions in
January 200S, coupled with restrictions till 008 on textile export growth of China (who is our
key competitor). Will have a favourable impact on the cotton van industry, as this will
increase the derived from garments.

The revenues of the cotton yarn industry have grown at a CAGR of 6"o from 2000-2001
to 2005-2006. The future revenue growth for yarn producers will be derived mainly from the
growth in garment and home textile exports, following the dismantling of the quota regime.
CRISIL research experts cotton yarn demand to grow at a CAGR of around 7.3% over the
next 5 years.

The cotton yarn industry in India is currently recording healthy growth. The removal of
quota restrictions is booting the garment export from the country. Given that over 60% of the
country’s total textile exports are cotton- based. This will drive demand for cotton yarn. The
customs duty on cotton yarn imports is 15°o. Which is in line with the peak rate of the
customs duty? However. Imports are not a significant threat. As India is globally competitive
in spinning and is the 1argest exporter of yarn in the world.

Operating margins have declined from 17.3% in 1999-2000 to 13.2% in 2004-2005. The
margins of cotton yam manufacturers depend on the prices of cotton, which is a seasonal
commodity and dependent on the vagaries of the monsoon. Net margins have been a low 3-4
percent in the last 2-3 years, as the industry is capital-intensive. Resulting in high capital
charges (interest and depreciation). However, the industry was a major beneficiary of the
Technology OP gradation Fund (TUE) scheme. With the recent announcement extension o1
the same for further five years by the Union Finance Minister.

24
 Cotton yarn demand does not follow a cyclical pattern it is evenly spread throughout the
year, with a marginal increase in summer. However. The producuon1 Of the Input, i.e.,
cotton, is seasonal since it is dependent on the monsoon. The industry is not significantly
affected by changes in inflation rate. However, cotton yarn manufactures are subject to the
risk of appreciation in the value of the rupee, as over 70% of total textile exports from India
are cotton-based, and cotton yarn contributes significantly to cotton textile exports. Indian
spinning companies are affected by high interest rates. Most companies are highly leveraged
due to their higher requirement of investments in fixed assets.

The spinning industry is moderately capital-intensive, with an average fixed asset

turnover of around 1.I times. However. The technology required is easily available and is not
subject to rapid changes. The industry is also working capital- intensive since most spinning
mills have to maintain enough raw material inventories for at least 3 month's production. The
industry is not capital-intensive employee costs accounts for only 7-8 per cent of the
revenues.

COTTON FABRIC

The production of cotton fabrics recorded a compounded annual growth of 3 per cent
from 2000-01 to 2003-06. The net profitability of most producers has been meagre. Given the
high capital costs (of the organized mill sector) the poor pricing flexibility due to
competition. However, the demand for cotton fabrics is expected to grow at around 8 per
cent, mainly driven by demand from garment and made-up exports post quota-abolition.

The demand for cotton fabric is not cyclical in nature and is spread evenly throughout the
year, with marginal improvement in summer and in festive seasons (Such as Diwali). Cotton
fabric exports (which account for 3 per cent of the domestic cotton production) are subjects to
foreign exchange risk. Given that the industry is capital-intensive, high interest rates have a
bearing on the profitability of companies. However, the industry has been benefiting from
higher financial assistance under the Textile Up gradation Fund Scheme (TUFS).

Technology is easily available. And the industry is not affected by rapid changes in
technology. The industry is moderately labour intensive and employee costs constitute about
6 per cent of total sales. However, the industry is labour sensitive and has faced strikes and
lockouts in the past, which have hampered production. The salient features are

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3.3 ORGANIZATION CHARTS:

General
Manager

Asst
Manager

Sales Purchase Finance

Manager Manager Manager

Sales Purchase
Cashier
Executive Executive

Service Spares

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4. DEPARTMENTS:

FUNCTIONAL DEPARTMENTS IN THE COMPANY

• PRODUCTION DEPARTMENT

• HUMAN RESOURCE DEPARTMENT

• PURCHASE DEPARTMENT

• SALES DEPARTMENT

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PRODUCTION

The main function of the mill is the product yam to the market. The production department
of the mills is spinning department the mill yarn production is the various count namely 20's.
30's, 40's, 42’s. 52's, count cotton yarn.

The production management invoice planning, organizing, directing and controlling the
production function or production system.

THE MAIN PRODUCTION SENGUNTHAR MILL IS THE FOLLOWING:-

I. 100% of cotton Yarn in core's, harks

2. Combined yarn in harks.

STRUCTUREOF PRODUCTION DEPARTMENT

Chief
Executive

General
Manager

Assistant Store
Spinning Electrican
Master Keeper

Quality
Supervisor
Supervisor

worker Fitters

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4.1. PRODUCTION DEPARTMENT

Steps invoked in production process are described are by one as below

PRODUCTION PROCESS

Mixing

Blow Room

Carding (silver)

Drawing (Silver)

Simplex (Rowing)

Spinning (Yarn)

Winding

Packing

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 1. MIXING

According to the requirement and counts cotton is mixed formula is strictly

confidential.

• Mixing bale opener

• Step cleare -1
• Mono cylinder
• Step cleare -2
• Condenser case
• Krasner beater

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 2. BLOW ROO\M

From mixing section cotton is transferred to blow room in blow room cotton is purified
from seeds and dust. Every day nearly 4500kg cotton is processed at the blow room and
converted in to lab 65 meter.

Each lab differs from standard and prescribed weight. In blow room nearly 10 workers are
working classification in blow room.

The remove the lap from structure cotton concerns.

A blow room process is controlled and guided by production manager.

As a routine maintenance blow room, machines are lubricated using grease and oil to the
follow the illuminated by the I5 lab lights. Fire extinguisher5 and water sprayer are in this
section.

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 3. CARDNG

This is the next stage to the blow room process. This section converts lab to silver
During conversion process laps waste and dust formed during this process they are
collected in a can it needs 5 to 7 cans for the production of 6 laps.

CARDING SECTION HAS THE WORKERS IN THE FOLLOWING

CATERGORIES:-

• Carding tender
• Carder fitter
• Carding fitter helpers
• Sweepers
At fortnight basic machines is cleared here, weekly once lubrication is done in the
machine.

At the top carding room micro dust cleaners are asked to remove such dust

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 4. DRAWING

This section converts the silver into evened in this process. This process Ensures that saver
is uniform in cross section and though out in the length.

Categories of employee in the section areas follow:

• Drawing tender.
• Tender helper.
• Fitter.
• Asset fitter and oiler.

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5. SIMPLEX

Silver is converted into moving. The final product from this section is directly sending the
spinning the spinning section as direct input. Six machines are in one bobbing average weight
is 125 grams. Each machine has 14+ Spindles. Mercury lights are in use to heat the fibres
during hard season for avoiding roller lopping in machines.

Workers in simplex section arc:

• Oiler.
• Fitter.
• Simplex tender.
• Tender helper and dotting boy.

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6. SPINNING SECTION

Moving to yarn form bobbing is made in this section. Get is collected in the form of
Spindles. This section has 36 rings, frames; totally it is having 440 spindles.

Workers in this section are:

• Jobber.
• Reserve
• Spiders.
• Oiler can tape Sticker.
• Dotting boy
• Dotting jobbers tape stickers.

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7. WINDING

For special purchase the yam is taken to winding section and converted into cone as per
the requirement made from warping section. One cone has an average weight 1.5KGS.

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8. DOUBLING

Doubling is used to remove the faults during spinning process. It gives necessary twists or
ring.

For doubling cones are instrument into the machines to get a doubling a cone yarn ,.or
ring of two cones with count no as 2's and 4's to be doubled and both are joined and
instructed into the machines.

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9. REELING

Reeling is used for suit the yarn for dying. Bleaching and for hand loom Weaving reeling
is a process in which yam through arte converted into bank from ho workers are needed in
either side of the machines, here normally females are allowed to work.

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10. PACKING

It means bundling and packing the cones. In the bag the company Trademark. Address,
manufacture date, Batch number is printed, in a canny bag 40 cones is packed. The reeling
process yarns are bundled. In a canny 60 bundled yams are packed.

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Wind Energy

SSMPL considers and shows its concern in utilizing renewable energy Sources, the wind
as the alternate and non-polluting energy. We have erected windmills that can generate 2.5
MW electricity.

Social Welfare

Social welfare for the workers is the foremost priority of our unit to ensure their health
both physically and mentally, by providing conductive environment with health and
comfortable amenities like spacious accommodation, safe drinking water healthcare with
periodical medical checkups, canteen with healthy and hygienic food and creative recreations
and entertainments.

We provide possible opportunities to the workers in order to access to higher education to

develop and enrich their skills and talents in tailoring and handwork techniques with our
assistance.

We celebrate local as well as nation level important days like May Day. Festivals.
Functions and other memorable occasions with our workers in sharing the spirit of
togetherness with our workforce.

The effluent water from various sources is well treated and reused for plantation in the
mill campus.

TECHNOLOGY

Comments on technology existing suitability and modernization proposed, if any Since

both the expansion projects under MTL IV and MTL V are completed. The unit also running
with full capacity of spinning (25200 spindles). Sizing and weaving (40 auto looms in total).
The yarn and fabrics produced are also in good quality. Hence survival in indigenous and
export marketing is positively viable. Also by having a warping and sizing mills in own, the
company is producing quality fabrics in consistence. The Flow chart of the company is as
following production process.

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4.2 HUMAN RESOURCE DEPARTMENT

Personnel are thus who are employed in the workplace Personnel management is an
administrative function which exists in an organization to ensure right personnel at right
organisation activity. It is a traditional approach of managing the employees which focuses on
adherence to policies and rules of organization.

Human Resource Management can be defined as managing (Planning organizing,

directing, controlling) the functions of employing. Developing and compensating human
resources resulting in the creation and development of human relations with a view to
contribute proportionately to the organizational. Individual and social goals.

The positive result of these changes is that HR professionals have the opportunity to play a
more strategic role in the business The challenge for HR Managers is to keep up to date with
the latest innovation-technology legal and otherwise.

Based on the vacancy list, internal promotion process takes place. The remaining vacancy
positions are filled through employment exchange. The personnel section sends the
recruitment details of the positions to the exchange based on which the list of candidates are
forwarded to the personnel sections. As per the special by-laws for those eligible candidates
who comply with the norms will be sent call letters to attend interview.

Candidates found suitable by the interview committee will be issued appointment orders.
Copy of appointment orders is marked to accounts section an induction schedule is prepared
with a view to impart know ledge about departments of the company.

After joining of' personnel they are required to adhere to the induction schedule. On
Successful completion of the probation period the services of the candidates are regularized
and the annual increment due to them on completion of one year is granted. If the
performance of the candidates is not satisfactory. Their probation may be extended for a
further period of six months.

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Sub process of personnel and administration:

• Managing employee recruitment, performance & retirement.

• Leave sanction.
• Managing employee loans permissions, awards and punishment. Administration and
vehicle monitoring.
• Vigilance and industrial relations.

4.3 PURCHASE DEPARTMENT:

Purchase

Raw Store
Material Material

Plant and
Cotton Stable Material
Machinery

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The Structure of Purchase Department:

Purchase
Department

General
Manager

Cotton Stock Stores Clerk

Asistant Assistant
Cotton Clerk Store Clerk

43
4.4. MARKETING DEPARTMENT:

Marketing department in the concern looks over the activities of sale of every product that
goes outside the concern. The marketing department does carrying and forwarding work.

Dealers

Distributors Sub Dealers

Customers

Credit Sales Policy:

The company receives 30% advance amount at the time of ordering and the balance 70%
amount will be collected at the time of delivery of goods.

Discount Allowed:

The company allows 10% discount when the goods are sold for ready payments.

Role of Sales Manager:

• According to the area basis the sales target is fixed by the sales manager.
• Sales manager forecast the target and fix the target for future monthly
schedule.
• He has to get the feedback from all the dealers and finalize the sales target
achievements.

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4.5. FINANCE DEPARTMENT:

STRUCTURE OF FINANCE DEPARTMET

Managing
Directors

Chief
Executive

General
Manager

Marketing Cashier

Accounts
Officer

Assistant
Acconts
Officer

FUNCTION OF THE ACCOUNTS SECTION

There are as follows

❖ To checks all the vouchers, bill receipts and pass them to the special officer.
❖ To check all
❖ The register regarding accounts section.
❖ To prepare monthly, quarterly, half yearly and annual accounts.
❖ To prepare the regards and all return to sales tax income tax authority in time.
❖ To take full in charge for collection dues from debtors and giving payment to
creditors.

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 ❖ To issue all each books and acts as a guardian.

STRUCTURE OF FINANCE DEPARTMENT

Finance is the comportment of business activities in every concern. Finance is required for
meeting for the day to day needs of the centralized business enterprise. The business can be
standard and can smoothly with finance department. The ancient's department are under the
control of the secretary.

The finance and accounts department’s deals with function like cash and banking
transaction. The senior accounts officer who is associated by the assistant by the officer and
one cashier heads the accounts department.

FUNCTIONS OF THE FINANCE DEPARTMENT

✓ Checks all the vouchers.

✓ For hill adjustment receipt and push up for special officers .pass order to the special
offers.
✓ Checks all the registers relating to the accounts section > Prepares monthly, quarterly
and annual accounts.
✓ Prepares and furnishes accounts, at the return and accounts to sale tax and income tax
authority in time.
✓ Arranges the timely collection of dues from the sundry debtors and payment to the
sundry creditors.
✓ Signs all the cash bills and credit bills issued to preliminaries and others. Issues all
cash bill book and receipt books to sections and acts as custodian of them.
✓ Advise the management of finance matters and informs the cash position.
✓ Analyses cash position.
✓ Sees that books like cash book, ledgers, journals and subsidiary books are maintained
up to date.
✓ Checks bill realization register.

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5. CONCLUSION

The problem underlying the organization was found and objectives were framed
accordingly. The research methodology was conceptualized to facilitate better process in the
achievement of the objects.

The study on workers satisfaction level revealed that workers were satisfied on majority of
the factors. The analysis thus provides light on this factor. Suitable suggestions were provided
to solve their problems.

The findings and suggestions provided by the researcher will help to increase the
satisfaction level of workers and motivate them in their job.

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6. BIBLIOGRAPHY

Production management - Prasad. Lallan 2nd. New Delhi: Sterling, 1985.

Marketing Management - Dr.C.B.Gupta, Dr.N.Rajan Nair. Publishers: Sultan Chand &

Sons, 2018.

Financial management - MR Agarwal: 2014, Publisher: Garima Publications 2014.

Human Resource management (Third Edition) - Author: Dr V.S.P. Rao is the executive vice
President of MIM Group of lnstitutions (former Professor and Dean at IBS, Hyderabad).

Sales Management - F.O. Boachie-Mensah. Publisher: Trafford Publishing, 2010.

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