Summer Internship Training

at
KKP TEXTILES LIMITED

Submitted by
Ms. K. Madhuram Cynthiya

Register No : 098001123040

Under the Guidance of

Mrs.P.Thamaraiselvi

In partial fulfillment of the requirements of Anna University – Coimbatore for the

award of the degree of

MASTER OF BUSINESS ADMINISTRATION

SCHOOL OF MANAGEMENT
SRI KRISHNA COLLEGE OF ENGINEERING AND TECHNOLOGY,
COIMBATORE

August 2010
 Sri Krishna College of Engineering and Technology
Coimbatore.
School of Management

BONAFIDE CERTIFICATE

This is a bonafide c ertified of prac tical record work done by

Ms . K.Madhuram Cynthiya, Regis ter No: 098001123040 for Summer

Inte rns hip Training of the Fourth Trimes ter of MASTER OF BUSINESS

ADMINISTRATION during Augus t - 2010.

Director/HOD

Submitted for the P ractical Examination held on_____________

Facult y Guide Int ernal Examiner

P lace: Coimbatore.
Date:
 DECLARATION

I affirm that the project work titled „AN ORGANISATIN STUDY OF KKP
TEXTILES LTD.’ being submitted in partial fulfilment for the award of M.B.A is the original
work carried out by me. It has not formed the part of any other project work submitted for award
of any degree or diploma, either in this or any other University.

-------------------------------

K.MADHURAM CYNTHIYA

098001123040
 ACKNOWLEDGEMENT

I thank the Almighty for the courage and confidence given to me to carry out this
Project.

I am thankful to Dr.S.SUBRAMANIAM, Principal, Sri Krishna College of Engg &

Tech for the facilities that aid us in pursuing our course and project.

I acknowledge with a sense of gratitude my sincere thanks to Mr.A.RAMANATHAN,

Director - School of Management for giving us the opportunity to undertake a project of this
nature with the department.

My special word of thanks to Dr.R.KRISHNAKUMAR, Professor and HOD, for his

constant encouragement throughout the internship.

I am much obliged to the Internal guide Ms.P.THAMARAISELVI, Senior Lecturer,

School of Management for providing me needed ideas and concepts in the relevant fields.

I extend my special thanks to all staff members of the Department helped me for
successful completion of the project.

I owe my affectionate thanks to my beloved parents, who have endured to raise me to this
level of education, my brothers who provided technical assistance and my friends for the
constant help towards the successful completion of the project on time.
 TABLE OF CONTENTS

S.NO TITLE PAGE NO

1 INTRODUCTION 1

2 ABOUT THE TRAINING 1

3 ABOUT THE INDUSTRY 1

3.1 TEXTILE INDUSTRY OF INDIA 5

4 ABOUT THE COMPANY 11

5 ORGANISATIONAL STRUCTURE 13

6 PRODUCTION DEPARTMENT 17

7 FINANCE DEPARTMENT 35

8 HUMAN RESOURCES DEPARTMENT 40

9 MARKETING DEPARTMENT 47

10 LEARNINGS 48

11 CONCLUSION 48
 1. INTRODUCTION

The organisation study is given to understand and to know how people in the industry
work and plan for the activities.

2. ABOUT THE TRAINING

This six weeks internship was scheduled as follows

Week 1: Study of the company profile
Week 2&3: Study of the production process
Week 4: Study of Human Resources Department
Week 5&6: Study on Marketing and Finance Department.

3. ABOUT THE INDUSTRY

A Latin word, originated from texere, it means "to weave". A Textile was originally a
woven fabric, but the terms Textile and the plural Textiles are now also applied to fibers,
filaments and yarns. Natural and manufactured, and most products for which these are a principal
raw material .Textile also refers to the yarns, threads and wools that can be spun, woven, tufted,
tied and otherwise used to manufacture cloth. The production of Textiles is an ancient art, whose
speed and scale of production has been altered almost beyond recognition by mass-production
and the introduction of modern manufacturing techniques. An ancient roman weaver would have
no problem recognizing a plain weave, twill, or satin. Descriptive of Textiles as defined above
and of the raw materials, processes, machinery, the manufacture, of Textile products are
components of Textile industry.

The textile industry is a term used for industries primarily concerned with the design or
manufacture of clothing as well as the distribution and use of textiles. Prior to the manufacturing
processes being mechanized, textiles were produced in the home, and excess sold for extra
money. Most cloth was made from wool, cotton, or flax, depending on the era and location. For
example, during the late medieval period, cotton became known as an imported fiber in
northern Europe, without any knowledge of what it came from other than that it was a plant;
noting its similarities to wool, people in the region could only imagine that cotton must be
produced by plant-borne sheep.

John Mandeville, writing in 1350, stated as fact the now-preposterous belief: "There grew
there [India] a wonderful tree which bore tiny lambs on the ends of its branches. These branches
were so pliable that they bent down to allow the lambs to feed when they are hungry." This
aspect is retained in the name for cotton in many European languages, such
as German Baumwolle, which translates as "tree wool". By the end of the 16th century, cotton
was cultivated throughout the warmer regions in Asia and the Americas. In Roman times, wool,
linen and leather clothed the European population: the cotton of India was a curiosity that only
naturalists had heard of, and silk, imported along the Silk Road from China, was an extravagant
luxury. The use of flax fibre in the manufacturing of cloth in Northern Europe dates back to
Neolithic times.

Cloth was produced in the home, and the excess woven cloth was sold to merchants
called clothiers who visited the village with their trains of pack-horses. Some of the cloth was
made into clothes for people living in the same area and a large amount of cloth was exported.

The process of making cloth depends slightly on the fiber being used, but there are three
main steps: preparation of fibers for spinning, spinning, and weaving or knitting. The preparation
of the fibers differs the most depending on the fiber used. Flax requires retting and dressing,
while wool requires carding and washing. The spinning and weaving processes are very similar
between fibers though.

Spinning evolved from twisting the fibers by hand, to use of a drop spindle, to a spinning
wheel. Spindles or parts of them have been found in very, very old archaeological sites; they may
represent one of the earliest pieces of technology available to humankind was invented
in India between 500 and 1000 AD It reached Europe via the Middle East in the European
Middle Ages.
 Weaving, done on a loom has been around for as long as spinning. There are some
indications that weaving was already known in the Paleolithic. An indistinct textile impression
has been found at Pavlov, Moravia. Neolithic textiles are well known from finds in pile
dwellings in Switzerland. One extant fragment from the Neolithic was found in Fayum at a site
which dates to about 5000 BCE. There are many different types of looms, from a simple loom
that dates back to the Vikings, to the standard floor loom.

History during the Industrial Revolution

The key British industry at the beginning of the 18th century was the production
of textiles made with wool from the large sheep-farming areas in the Midlands and across the
country (created as a result of land-clearance and enclosure). Handlooms and spinning
wheels were the tools of the trade of the weavers in their cottages, and this was a labour-
intensive activity providing employment throughout Britain, with major centers being the West
Country; Norwich and environs; and the West Riding of Yorkshire. The export trade in woolen
goods accounted for more than a quarter of British exports during most of the 18th century,
doubling between 1701 and 1770. Exports of the cotton industry – centered in Lancashire – had
grown tenfold during this time, but still accounted for only a tenth of the value of the woolen
trade.

The textile industry grew out of the industrial revolution in the 18th Century as mass
production of clothing became a mainstream industry. Starting with the flying shuttle in 1733
inventions were made to speed up the textile manufacturing process. In 1738 Lewis
Paul and John Wyatt patented the Roller Spinning machine and the flyer-and-bobbin system.
Lewis Paul invented a carding machine in 1748, and by 1764 the spinning jenny had also been
invented. In 1771, Richard Arkwright used waterwheels to power looms for the production of
cotton cloth, his invention becoming known as the water frame. In 1784, Edmund
Cartwright invented the power loom. With the spinning and weaving process now
mechanized, cotton mills cropped up all over the North West of England, most notably in
Manchester and its surrounding towns of Ashton-Under-Lyne, Stalybridge and Dukinfield.
 Textile mills originally got their power from water wheels, and thus had to be situated
along a river. With the invention of the steam engine, in the 1760s to 1800s, mills no longer
needed to be along rivers.

Post Industrial Revolution

Many of the cotton mills, like the one in Lowell MA, in the US originally started with the
intention of hiring local farm girls for a few years. The mill job was designed to give them a bit
more money before they went back to the farm life. With the inflow of cheap labor from Ireland
during the potato famine, the setup changed, as the girls became easily replaceable. Cotton mills
were full of the loud clanking of the looms, as well as lint and cotton fiber. When the mills were
first built, a worker would work anywhere from one to four looms. As the design for the loom
improved so that it stopped itself whenever a thread broke, and automatically refilled the shuttle,
the number of machines a worker could work increased to up to 50.

Originally, power looms were shuttle-operated but in the early part of the 20th century
the faster and more efficient shuttle less loom came into use. Today, advances in technology
have produced a variety of looms designed to maximize production for specific types of material.
The most common of these are air-jet looms and water-jet looms. Industrial looms can weave at
speeds of six rows per second and faster.

By the later 20th Century, the industry in the developed world had developed a bad
reputation, often involving immigrants in illegal "sweat shops" full of people working on textile
manufacturing and sewing machines being paid less than minimum wages. This trend has
resulted due to attempts to protect existing industries which are being challenged by developing
countries in South East Asia, the Indian subcontinent and more recently, Central America.
Whilst globalization has seen the manufacturing outsourced to overseas labor markets, there has
been a trend for the areas historically associated with the trade to shift focus to the more white
collar associated industries of fashion design, fashion modeling and retail.
3.1 Textile Industry of India

India Textile Industry is one of the leading textile industries in the world. Though was
predominantly unorganized industry even a few years back, but the scenario started changing
after the economic liberalization of Indian economy in 1991. The opening up of economy gave
the much-needed thrust to the Indian textile industry, which has now successfully become one of
the largest in the world.

India textile industry largely depends upon the textile manufacturing and export. It also plays a
major role in the economy of the country. India earns about 27% of its total foreign exchange
through textile exports. Further, the textile industry of India also contributes nearly 14% of the
total industrial production of the country. It also contributes around 3% to the GDP of the
country. India textile industry is also the largest in the country in terms of employment
generation. It not only generates jobs in its own industry, but also opens up scopes for the other
ancillary sectors. India textile industry currently generates employment to more than 35 million
people. It is also estimated that, the industry will generate 12 million new jobs by the year 2010.

Various Categories

Indian textile industry can be divided into several segments, some of which can be listed as
below:
 Cotton Textiles
 Silk Textiles
 Woolen Textiles
 Readymade Garments
 Hand-crafted Textiles
 Jute and Coir
THE INDUSTRY

India textile industry is one of the leading in the world. Currently it is estimated to be
around US$ 52 billion and is also projected to be around US$ 115 billion by the year 2012. The
current domestic market of textile in India is expected to be increased to US$ 60 billion by 2012
from the current US$ 34.6 billion. The textile export of the country was around US$ 19.14
billion in 2006-07, which saw a stiff rise to reach US$ 22.13 in 2007-08. The share of exports is
also expected to increase from 4% to 7% within 2012.
Following are area, production and productivity of cotton in India during the last six decades:

Area in lakh
Year Production in lakh bales of 170 kgs Yield kgs per hectare
hectares

1950-51 56.48 30.62 92

1960-61 76.78 56.41 124

1970-71 76.05 47.63 106

1980-81 78.24 78.60 170

1990-91 74.39 117.00 267

2000-01 85.76 140.00 278

2001-02 87.30 158.00 308

2002-03 76.67 136.00 302

2003-04 76.30 179.00 399

2004-05 87.86 243.00 470

2005-06 86.77 244.00 478

2006-07 91.44 280.00 521

2007-08 94.39 315.00 567

2008-09 93.73 290.00 526

Though during the year 2008-09, the industry had to face adverse agro-climatic conditions, it
succeeded in producing 290 lakh bales of cotton comparing to 315 lakh bales last year, yet
managed to retain its position as world's second highest cotton producer.

Strengths

 Vast textile production capacity

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

Weaknesses

 Increased global competition in the post 2005 trade regime under WTO
 Imports of cheap textiles from other Asian neighbors
 Use of outdated manufacturing technology
 Poor supply chain management
 Huge unorganized and decentralized sector
 High production cost with respect to other Asian competitors
Cotton Exports from India
Year Quantity (in lakh bales of 170 kgs) Value (in Rs./Crores)

1996-97 16.82 1655.00

1997-98 3.50 313.62

1998-99 1.01 86.72

1999-00 0.65 52.15

2000-01 0.60 51.43

2001-02 0.50 44.40

2002-03 0.83 66.31

2003-04 12.11 1089.15

2004-05 9.14 657.34

2005-06 47.00 3951.35

2006-07 58.00 5267.08

2007-08 85.00 8365.98

2008-09 50.00 N.A.

Year Quantity (in lakh bales of 170 kgs.) Value (Rs./Crores)

1996-97 0.30 56.42

1997-98 4.13 497.93

1998-99 7.87 772.64

1999-00 22.01 1967.92

2000-01 22.13 2029.18

2001-02 25.26 2150.01

2002-03 17.67 1789.92

2003-04 7.21 880.10

2004-05 12.17 1338.04

2005-06 5.00 695.77

2006-07 5.53 752.29

2007-08 6.50 986.33

2008-09 7.00 N.A.

Current Facts on India Textile Industry

 India retained its position as world‟s second highest cotton producer.

 Acreage under cotton reduced about 1% during 2008-09.
 The productivity of cotton which was growing up over the years has decreased in 2008-
09.
 Substantial increase of Minimum Support Prices (MSPs).
 Cotton exports couldn't pick up owing to disparity in domestic and international cotton
prices.
 Imports of cotton were limited to shortage in supply of Extra Long staple cottons.
 4. ABOUT THE COMPANY

K.K.P. Group is the only major industrial group in Namakkal , a town well known for
Lord Anjaneya temple and lorry transport business, was found by (late) Shri K.Periyasamy a
reputed land lord and eminent merchant. He started the group flag ship company K.K.P.
TEXTILES (P) LTD., in the year 1985, in a humble way with an initial production capacity of
just 1760 spindles. It was further developed by the founder‟s able, energetic and enterprising
sons Shri.P.Nallathambi and Shri. P.Chinnasamy over a period of 10 years the spindle capacity
was increased by more than 10 folds to 25,660 spindles, giving direct employment to hundreds
of poor people and further employment through the allied trade like transport, spares etc.

With an idea to further utilise the infra-structure available, they started one more unit -
K.K.P. SPINNING MILLS LTD., in the year 1995 with a capacity of 13,104 spindles.

In the year 2004, the management increased their spindleage by 2020 spindles in Textiles
and one Ultra-modern unit with of 22000 spindles with latest technology machineries, layout and
structure, keeping the non-Quota regime in mind.

The group‟s spindle capacity has then risen to the present 62,784 with potential for
further expansion.

The promoters are very quality conscious and always keep the technological up gradation
as an on-going process by equipping the two units with latest machinery like imported Auto
coner, draw frames and comber and quality systems.

The mills are equipped with modern quality control laboratory with latest testing
equipment‟s in order to give more importance to the quality of yarn produced by them. The
unending quest to improve quality standards in all areas of operation, their organisation stands
for quality that is based on the participation of all members and aiming at long term success
through customer satisfaction by improving the quality of yarn to meet the future demands.
 Now the mill has its product profiles with the count range of 16s to 54s for various end
uses like Hosiery, warp and hanks both in single and doubled. Also the mill is capable of
producing any type of cotton yarn other than product profile counts both in carded and combed
yarn when the request made.

Also the management stepped into the Weaving sector by erecting 38 Sulzers looms in its
spinning mills premises and doing 200 looms with fabric conversions. Now the management is
thinking to put one modern warping & sizing plant. All there Ventures make this management as
a trend setter in Namakkal area as well as Western TamilNadu.

The management started their own Power generation plant in both of their spinning unit
which make them to compete with the international giants like Chinese yarn & fabric
manufactures.
Objective of the Company

Our group believes in the overall growth of the company. This we feel could be achieved
by extending the services of our extended laboratory, computerized testing equipments and
trained technical personal to the manufacturing unit surrounding us. Our team of technical
personal also offer the solutions to the problems found while testing. Many production units and
buyers are utilising these facilities and are happy with the results.

The group of companies include

KKP Textiles Limited KKP Spinning Mills Limited

Femina Mills Limited KKP weaving Divsion
KKP made-ups Division KKP cotton Exports
KKP Finance Limited KKP Transports
KKP Modern Rice Mills
 5. ORGANISATIONAL STRUCTURE

The company KKP Group of mills has two manufacturing units namely KKP Textiles
Limited and KKP spinning Mills for the manufacture of yarn. The MD keeps in direct touch with
the Factory manager, Quality system co-ordinator and the marketing officer. There is a technical
manager, he guides the Spinning master. There are two assistant spinning masters taking orders
from the spinning master and giving instruction for the Production supervisor and maintenance
supervisor. The spinning master also provides instruction to Quality assurance In-charge(QAI),
Personnel officer(PO), Stores Inventory(SI), Electrical supervisor(ES), Cotton Supervisor(CS)
and the Marketing assistant(MA). The QAI has a Quality Assurance Department Supervisor
(QADS) who checks the report of the quality tests conducted. The Electrical supervisor is made
available at all the time in the factory for any emergency purpose. The cotton supervisor takes
care of the loads of cotton that comes in and sends it for quality testing. This organisational
structure is followed in each of their units.

Fig. 1 shows the organisational chart of KKP group of companies and Fig.2 shows the
management in KKP spinning mills.

Policy Document

The company‟s watch words are Quality, Time and Price. The main aim of the company
is

“To Produce quality yarns as per agreed specification and supply them on time at
competitive price to satisfy our esteemed customer.”

This is achieved by continual improvement through effective quality management

systems and dedicated team work. Their strength is adopting new technology and acquiring new
machines from foreign countries.
 6. PRODUCTION DEPARTMENT

Purchase & Stores Department

This department is responsible for the purchase of raw materials from the suppliers and
sent to the stores section of the production department. The purchase department and the
production department are inter-related closely. The purchase manager is responsible for the
purchase department activities. He is assisted by his assistants.

The purchase department is the one that is in charge for purchasing the raw materials
from the suppliers. The stores department is closely in touch with the purchase department, as it
store the raw materials.

The purchase manager will be intimated by the stores manager, when the stock gets
reduced to the re-order level. Now the purchase manager will know that there is a need for the
raw material. So, he in turn intimates the supplier who supplies that particular raw material for
the company. When the supplier receives the order, he will ask for the delivery time. The
company gives this information according to the urgency of the need.

In Stores Department, spare parts, stationery items are purchased and stored by the
department. Following are function of Stores Department:

1. Whether particular order is required ?

2. Whether order can be postponed ?
3. How much to order and at what price to order?
4. Whether there is any alternative ?
5. When to order ?
To perform the function effectively, Stores Department follows the following procedure:

1.Item required - The Store Officer does not initiate any action for the purchase of
materials. The purchase requisition is initiated by the various department. Items required by the
each department is intimated to the Store Officer and recorded by him.

2.Enquiry- The source of supply of material must be selected in order to select good source
of supply, following factor is to be considered:

 Quality
 Price
 Delivery time.

Based upon these factors, enquiry is done among the various source of supply. All the factors
should be satisfied by the suppliers.

3.Quotation from suppliers- Quotation is invited from the suppliers by issuing tenders to
them. On receipt of quotation from the suppliers, a comparative statement of various quotation
received should be prepared & the desirable suppliers is selected.

While selecting the suppliers to whom order is to given for the purchase of materials the
stores department should keep in mind the following factors:

- Reliability of supplier
- Price quoted
- Quantity for which price quoted is applicable
- Terms of payment
- Terms of delivery
 All the other factor being the same the purchase price should be the lowest price at which
a particular material is to be purchased. The supplier should be dependable and capable of
supplying materials of uniform quality at right time at reasonable prices.

PURCHASE ORDER

After choosing the supplier, the Stores Department prepares the purchase order for the
supply of stores. The supplier is bound to supply materials according to the terms and conditions
of the purchase order.

RECEIVING MATERIALS

The Storekeeper receives the material by checking the Challan, quantity, quality of
materials is checked by comparing purchase order with delivery challen. Any storage or
breakage is intimated to the suppliers after checking the Storekeeper receives the material and
store it in the Stores.

DAY BOOK ENTRY

After receiving the material entry is made in the day book. Invoice are checked with
reference to Stores received notes and the purchase order respectively.

COMPUTER ENTRY

Later on entry is also made in the computer.

INTIMATION

Intimation is given to the various departments and the department has to collect the
required materials from the Stores Department.
STORE REQUISITION SLIP

Store requisition slip is maintained by the department for each material. Before issuing
materials to the departments, entry is made in the requisition slip.

Documents maintained by Stores Department

 GRN
 RGP
 RMDC
 MRS
 MRN
 BIN CARD
 DC

1)GRN: GOODS RECEIVED NOTE.

There are three types of GRN.

a)Purchase GRN:

When the materials are purchased from the suppliers and brought into the company the
PURCHASE GRN is prepared. This document is used to record the quantity of raw materials
purchased from the suppliers. They have some important particulars such as the raw material
code, raw material name, date of purchase, time of purchase, etc.

b) Inter department GRN:

When any materials are exchanged between the departments, then this INTER UNIT
GRN is prepared. This GRN gives proper information about the raw materials that are
transferred from one department to the other.
 c) End bits GRN:

When scrap is given back to stores from production, the END BITS GRN is prepared.
This GRN will provide the details about the scrap sent back to the stores at any given time. It
will have some details like, the value of the scrap, the root product from which the scrap has
been taken, etc.

2) RGP: RETURNABLE GATE PASS.

This challan is prepared for the material which has been given to the subcontractors for
sample.

3) RMDC: REJECTED MATERIAL DELIVERY CHALLAN.

This challan is prepared when the rejected components are sent back to the supplier. This
is done when the components or raw materials have some defects in it.

4) MRS: MATERIAL REQUISITION SLIP.

This slip is prepared by the supervisor and sent to the stores for the requisition of
material.

5) MRN: MATERIAL RETURN NOTE.

If the materials are in excess, then the production department will return the materials to
the stores. This slip is prepared by the stores manager.

6) BIN CARD:

BIN CARD is maintained by the store keeper for the correct stock balance of the
material. When the materials are given for production then the store keeper reduces the stock of
the material, in the material issued column. When the materials are purchased, the store keeper
increases the stock of the material. This bin card maintained separately for each material.

7) DELIVERY CHALLAN
The delivery challan is maintained for the purpose of recording the amount of goods
delivered to the dealers. Once when the goods are sold to the dealers this delivery challan is
prepared.

HOW THE RAW MATERIALS REACH THE PRODUCTION DEPARTMENT?

When there is a need for the raw material, the company orders for it to the suppliers.
When the raw materials reach the stores department the purchase GRN is prepared and it is
received by the employees. The stores manager checks the documents and then, signs for the
company. Now the stock level will get increased. When the production department needs the
raw materials, the production manager will request the stores manager to send the raw materials
required. The stores manager prepares the inter department

GRN and then sends it to the production department. Now, when the raw materials are received
by the production manager, he checks whether he has received the required amount. Then, he
sends the raw materials to the production unit to proceed with the production process.

The company mostly purchases cotton from Gujarat and Andhra Pradesh. Other electrical
equipments and most of the spare parts are got from the Lakshmi Mills, Coimbatore.

Fig. 3 shows the production process of the company

FIG.3
RAW MATERIAL

COTTON MIXING

BLOW ROOM

CARDING
PRE COMBER
DRAWING
SILVER LAP

RIBBON LAP

UNILAP COMBER

DRAWING

SIMPLEX

CHEESE SPINNING
WINDING

DOUBLING CONE WINDING

-AUTO CONER
REELING

BUNDLING PACKING

DESPATCH
RAW MATERIAL:

Cotton is the most widely used textiles fiber today. After the cotton crop is harvested the
kapas has to be ginned in order to separate fiber from the seeds. After ginning, the cotton is
available in a loose opened form. For convenience of handling and transposition, cotton is
compressed and packed into bales. The quality of cotton is judged in terms of its Grade and
Staple. The grading of cotton is done with reference to impurities such as leaves, sand, dust,
broken, seeds naps, moles and colour of cotton. But the fiver properties of cotton are judged
mainly by the length of the fiber i.e. the Staple length. Quality of cotton depends on its physical
properties viz. length, fitness, strength and maturity by etc. .Raw material used here includes
different varieties of cotton namely S6.LK, SCV5, MECH, MC5, LRA, S4, Y1, NH44. As said
earlier these are purchased mostly from Gujarat and Andhra Pradesh.

MIXING:

These different varieties of cotton are mixed based on various proportions as specified by
the Factory Manager. These proportions vary for each order to bring the required quality as
specified by the client. This unloading of cotton and mixing comes under the supervision of the
CS.

BLOW ROOM

A blow room line consists of opening, cleaning, mixing and lap making, machine. The
cotton is received in the mill in hard pre bales which contains several impurities. The blow room
machinery performs function of opening hard pressed bales of cotton and cleaning the cotton of
impurities. Trash and foreign matter is to be extracted from the cotton with the least amount of
lint loss. The amount of waste extracted would depend on the amount of trash in the mixing.

Another important function that is performed by the blow room equipment is "Mixing". Two or
more different varieties of cotton are general mixed thoroughly to get a proper blend. In order to
produce uniform quality of yarn and also to reduce the cotton cost of yarn while achieving the
desired level quality, the mixing, of two or more types of cotton is carried out in the blow room.
The loose cotton passed through the blow room machinery is converted into regular sheets called
laps. These laps are delivered lo the next department viz. carding room, alternately auto feed
system in blow room to feed the carding machines the process of lap formation is avoided.

Opening

Opening is the first operation, it means, tearing apart the compressed and matted cotton
until it is very much loosened and separated into small tufts with a gentle treatment with a fiber
loss as small as possible.

Cleaning

The next step is cleaning, for which we should know the types of impurities present in
them and also the ways to remove it.
 There are different types of impurities present in the cotton.

1. Vegetable matter

Husk portion
Seed fragments
Stem fragments
Leaf fragments
Wood fragments

2. Mineral Impurities:

Earth
Sand
Ore dust coal dust picked in transport.

3. Other foreign matter

Metal fragments
Cloth fragments
Jute fragments
Packing material (mostly polymers)

4. Fiber particles (which makes the greater portion of dust)

Blending:

Raw materials used in spinning mill are always inhomogeneous in their characteristics due
to area to area and pick to pick. For the purpose of getting good regular yarn it is very important
to blend or mix different types of cotton.
 There are also following reasons that why we blend the cotton:

 To give required characteristics to end product.

 To hold down raw material cost.
 Compensate for variations in the characteristics.
 To improve running characteristics of short staple material by mixture of carrier fibers.

There are two types of mixing:

1. Sandwich mixing
2. Automatic mixing

Sandwich Mixing

In this process the cotton layers from the one bale is spread onto the ground. Above this
some type of soft or usable waste including slivers, lap, pneumaphil from the ring etc that is
taken from different machines are used. A specific type of oil called as “Licapol” is also used
just to strengthen the waste of ring. For every bale about 10 kg of the usable waste is used.
Above this layer another layer from 2nd bale is spread. The above two steps are repeated to get
the required specification. These formed layers are called as heap and this heap is cut vertically
to feed into the machine. This is done to get a proper blend of the fibres for the required quality.

Automatic Mixing

In this process cotton from the bales picked up by the machines and that is mixed
automatically. For this purpose different type of machine are used which includes “A11
Blendomate”.
CARDING

Carding is a mechanical process that breaks up locks and unorganized clumps of fibre
and then aligns the individual fibres so that they are more or less parallel with each other. The
material received from Blow Room are processed on the Carding Engines for the purpose of
effecting individualization of fibers, extracting sand, leaf etc., left in the cotton and converting
the laps in the form of thin web called slivers. The slivers are stored in cans.

From the pickers or the scutchers, as the case may be, the cotton lap is transferred into the
carding machine, the purpose of which is to remove all dirt, sticks, particles of leaves, and other
impurities that were not removed by the pickers and scutchers. It disentangles the fibers still
more, and lays them approximately parallel. Drawing out the lap into a thin filmy layer of cotton,
usually about forty inches wide, it then contracts this layer into a light, round cotton rope or
ribbon about an inch in diameter. This rope is called the card sliver.

The carding machine or carding engine consists essentially of two surfaces both covered
with great numbers of short, sharp teeth made of wire. These surfaces, called the cards, face each
other with only a narrow space clear between the teeth. The cards move in such a way as to brush
the cotton lint as it passes between them, combing out the fibers and catching all irregularities,
such as dirt, parts of seeds, short fibers, and neps (little bunches of cotton fiber that have not
been loosened). The lower card is in all modern machines a large revolving cylinder, while the
upper card is shaped like a cover or roof over the upper part of the cylinder. A few years ago the
upper card was a stationary device, but it has now been improved so that it moves also. This has
been accomplished by fastening the carding surface to an endless belt or carrier, passing it
around cylinders at the two ends and at the middle, and putting in devices to keep the lower side
from sagging down upon the lower card. Thus both upper and lower cards revolve, but the
cylinder turns at a much greater speed than does the top card, known as the flats; the cotton is
therefore brushed and combed by the flats while being carried along on the teeth of the cylinder.

There are also in the carding engine other mechanical devices called respectively the
lickey-in and the doffer. The first draws the cotton lap into the cards; the second removes it there
from. The cotton is removed from the doffer by a comb. The machinery having been so adjusted
that the cotton travels faster in the cards than the rate at which the lap comes in, the stream or
sheet of cotton lint becomes much thinner than the lap from the scutcher that enters the carding
engine.

From the doffer the thin cotton lap is carried to what is known as a trumpet mouth in
which the entire lap is condensed into a round rope, three or four inches in diameter, called the
card sliver. The sliver is immediately passed between a pair of calendar rollers which condense it
to about the size of a broomstick. Thence it is conveyed to a little device that winds it spirally
into a deep sheet-iron or tin can called the sliver can. When full, this can is carried to the drawing
machinery. In case yarn of a very high count, or of a very fine size, is to be made, the sliver is
taken to the combing machines to be combed before it is sent to the drawing frame. Practically
all sea-island cotton, all yarn of sizes from 60's up, and certain fine yarns of lower counts are
thus not only carded but combed also. In some cases, especially in producing yarn for medium-
priced cotton underwear and warp for velvets and fancy woven fabrics, the cotton lint is run
through the carding machine a second time instead of through a combing machine. The latter
process has been found to be cheaper than combing.
COMBING

The combing machine simply does more perfectly what the carding machine starts to do
in the way of cleaning the fibers, removing the neps and short fibers, and getting all the
remaining fibers to lie smoothly and in parallel order. Here the fibers are thoroughly combed,
and all short fibers, any dirt remaining, and other foreign matter are pushed aside as waste. In
this process a lap is converted to cotton of thickness 8 inches and is stored in cans. These cans of
cotton are called slivers. There has been great improvement in cotton combing during recent
years. The combing machines now utilize cotton fiber that is not more than seven-eighths of an
inch long, and yet produce a sliver that is almost as fine as that from the best cotton a dozen
years ago.

DRAWING

Next, the slivers from the carding engine or from the combing machine are taken to the
drawing frame. About six slivers are introduced together. The drawing frame takes these six and
so draws them out that the resulting sliver is no larger than one of the card slivers. Drawing
simply mixes the cotton, causes the fibers to arrange themselves in the best manner possible for
the spinning that is to follow, and draws the combined six slivers out into the thickness of one.
The drawing frame accomplishes this by means of several sets of rollers through which the
slivers pass, each following pair of rollers having a higher rate of speed than the pair preceding.
Requirements differ, but most cotton is run through drawing frames three times.

Next the cans full of sliver from the drawing frames are transferred to the fly frames.
Here the cotton is drawn out into still smaller diameters and given the small amount of twist
sufficient to allow the sliver to be drawn out further without breaking. For very coarse yarns the
cotton passes through but two fly frames, the ones known as the slubbing frame and the roving
frame, the product from the slubbing frame being called slubbing or slub, and the product from
the roving frame roving. For medium yarns the cotton passes through three fly frames, slubbing,
intermediate and roving, while for very fine yarns it is passed on to a jack frame to be drawn out
still more. The cotton from the fly frames, now called roving, is wound on spools or bobbins and
taken to the spinning machines.

Comparison of the mule and ring frames.-Spinning completes the drawing out of the
cotton roving to the required size, and gives it the proper amount of twist. There are two kinds of
spinning machines in use, one known as the mule frame and the other as the ring frame. The
mule frame is the older machine invented in England, while the ring frame is an American
invention dating back to 1828. Each has certain advantages. For example, mule spinning
produces a soft, oozy, elastic yarn that is very satisfactory for hosiery, underwear, and especially
for woolen goods. The mule frame is more common in the woolen-spinning industry than in the
cotton. Although it is much more complicated than the ring frame, it takes up more space,
requires more skillful operators, and does not run so fast as the ring frame, yet it is not so hard on
the yarn, and it produces yarn of superior quality. The ring frame is not usually used for yarns
running above 60's. The mule frame has three distinct and separate motions: first, the roving is
drawn out; second, it is given the necessary twist; and third, the twisted yarn is wound on the
spindle. The ring frame draws, twists, and winds, all at the same time. In both cases the yarn is
wound on bobbins, cops, or tubes fastened on the spindle. This is the form in which it usually
leaves the spinning mill. Sometimes, however, it is rewound on wooden spools by another
machine called the spooler. Cotton yarn is quoted on the market as so much a pound for a certain
size on cops, cones, or tubes, or in skeins. Often the yarns are combined, twisted double or triple-
or two-ply or three-ply, as it is called. Special machines perform these operations.

Simplex

In simplex, eight cans of sliver is converted to a single can of much lesser thickness.

 The Production System

Input Process Output

Raw material- Cotton mix Mixing, carding, drawing, Yarn
combing, simplex
 The production policy is both make to order and make to stock. i.e., for the
manufacturing of yarn only when the order is placed, the specified quality yarn is
produced and whereas in shirt manufacturing it is make to stock.
 Quality is checked at each level, starting from the quality of raw materials to the final
output i.e., yarn.
o Yarn quality levels matching to USTER 5% standards
o Well equipped testing lab with USTER HVI for raw material testing
o AFI pro, UT 4, CLASSIMAT are used for quality assurance
o Samples are taken from each process, for every 2 hours for testing.
o They produce yarn of three various counts viz., 30s 40s and 60s. In this the
60s count refers to the good quality thread. This count determines the strength
of the thread.
 They have continuous flow of production i.e., only when a process is over, the next
process can be continued.
 The plant location is 8 kms away from the town and so
 They follow a product focussed strategy.
 They follow batch production.
 Maintenance:
o They have three shifts. In each shift they take away the waste for every 3 hours.
 7. FINANCE DEPARTMENT

The finance department is the heart of the company. This department is supposed to be
arranging the funds that are required by the company. The finance department is the blood of the
whole organisation as it provides the sufficient funds that are required for the working of the
organisation. The finance director is in charge for the functioning of this department. The
department has two officers looking after the financial affairs of the company.

ACCOUNTING YEAR:

The KKP Textiles follow the April – March financial year. By the end of each year,
the company is supposed to submit its accounts to the external auditor. They pay some taxes and
duties.

The auditing of the company is of two types. They are:

a) Internal
b) External

INTERNAL AUDITING:

The internal auditing is done by the internal auditor of the company. The internal
auditing is done once in a month. The internal auditor checks for the accuracy of the
accountants. The entries in the daybooks and the ledgers are posted daily by the other
accountants. By the end of every year, the trading and profit and loss account and the balance
sheet is prepared to find the financial position of the company. By preparing the trading and
profit and loss account and the balance sheet, the managing director will know whether the
company is enjoying a profit or it is running in a loss.
EXTERNAL AUDITING:

The external auditing is done once in a year. This is done by an external auditor, who
comes from the auditor‟s office. He checks for the accuracy of the accounts.

CREDIT PERIOD:

KKP Textiles receive a credit period of 90 days from their suppliers for the purchases
that they make. They give a credit period of 30 to 60 days for their dealers and customers.

They generally do not give any cash discount, as the transactions are done on the credit
basis. When they make cash transactions, they give cash discounts also.

MONTHLY REPORTS:

The general monthly reports that are prepared are:

a) Total receipts
b) Total payments
c) Outstanding list of debtors
d) Outstanding list of creditors

The above listed reports are prepared once in a month and submitted to the managing
director for his reference. The managing director scrutinizes the above reports and passes any
orders or corrections to be made. Later, the finance manager and the assistant finance manager
execute his orders.

LOANS & ADVANCES:

KKP Textiles gives advances to its employees but there are no loans. If the employee
applies for any advance, the managing director sanctions the application for advance and
provides the employee with the cash that is required.
 The repayment of advances is made through the instalment schemes. Generally, the cash
should be repaid in 10 monthly instalments. The number of monthly instalments is not that
fixed. It is subject to flexibility.

TAXES & DUTIES:

The company pays two kinds of taxes. They are:

a) Income tax
b) Sales tax

The income tax is paid only once in a year. But, the sales tax is paid every month. The
taxes are paid regularly. The income tax is paid in the month of March and the sales tax is paid
on the 20th of every month. A period of one month is given as a credit period.

The finance manager looks after all the activities. He brings to the notice of the
managing director, if some payments are to be made for the purpose of any taxes or duties or any
such expenses. The managing director passes the required orders. The finance manager and the
assistant finance manager execute the orders of the managing director.

SOURCES OF FINANCE:

The company issues neither shares nor debentures to both the general public and the
employees of the company. So, the company is dependant on the fixed deposits, bank loans and
the current deposits.

The Company has got loan from the Lakshmi Vilas Bank,Namakkal Branch. The
company accepts deposits from the public at an interest rate of 15% p.a.
BOOKS MAINTAINED

 Cash Book
 Bank Book
 Purchase Book
 Sales Book
 Day Book

Cash Book
Cash book is maintained by the cashier. All the transactions are recorded in the computer
which is overlooked by different accounting heads.

Bank Book
The bank book has the particulars like nature of transaction i.e., if a payment is made
through cheque, its date, amount and the instrument number is registered. The bank book is
compared with a pass book for every week. This is the Bank Reconciliation statement.

Purchase Journal
The purchase invoice is entered with the date of transaction, name of the party, invoice
number, quantity, quality and value.

Sales Journal
This contains the sales invoice number, the customer‟s name, and quantum of sale along
with the value of transfer. This also includes the amount of waste cotton.

Day Book
It is an accounting book of original entry in which transactions
(such sales and/or purchases) are entered on the day they occur, for later posting to the
appropriate ledger(s).
 8. HUMAN RESOURCES DEPARTMENT

The human resources department is the department that works for the welfare of the
employees. This department helps the company to solve the problems that are likely to arise
between the management and the employees. Personnel department maintains separate files for
all the employees. The personnel manager is responsible for all the activities of the personnel
department.

Types of workers:

There are about 500 workers who are working for the company. There are 3 types of
workers who work for the company. They are:

a) Staffs or employees
b) Contractors
c) Workers.

Staffs are the high level employees whose work is confined to the head office. The pay scale
for the staff is slightly higher than that of the contractors.

The contractors are the next level of employees associated with the supervising work.
The workers are the low level employees and they directly involve in the production process.
These workers have three shifts, each shift for 8 hours. Each shift has a total of 40 minutes break.

The shift timings are

7.30 AM – 3.30 PM First Shift

3.30 PM – 11.00 PM Second Shift
11.00 PM – 7.30 AM Third Shift

The first shift is considered to be the regular shift. Lunch break is for 30minutes.
 The Head office working hours is from 9:00 am to 5:00 pm. This timing is applicable
only for the staffs. The working hours of the workers are likely to vary from day to day.

TRAINING PROGRAMMMES:

Need for the training programs:

1) To update the general knowledge of the employees

2) To promote the personnel to a higher caliber
3) To provide the employees an in-depth knowledge about the prevailing working conditions.
4) To re-orient individuals
5) To motivate the employees

STAFF TRAINING:

The systematic performance appraisal method will bring out the training needs.

a) To change the weaknesses into strength.

b) To improve any deficiency spotted
c) To make them fit for higher responsibilities
d) To enable job rotation.

VARIOUS TRAINING PROGRAMMES:

Trainers are available for each section of production enabling the employees to achieve
productivity. Training duration is approximately 3 to 4 weeks.

The employees are given training in the field of computers. This was done to enable their
personnel to manage all their transactions by the computers.
 Apart from this, the employees were sent to learn the first aid. The first aid training is
very essential for the employees because if at all an accident occurs, in the company, they should
be able to perform atleast the first aid activities.

FUNCTIONS OF HRD:

 Man power plan and recruitment:

The managing director along with a few other personnel plans for the future. They assess
the man power required based on the production plan and the expected designation for that year.
They invite applications through the famous local journals. They don‟t do campus recruitment.
At the lower level there are both permanent and temporary workers.

 Selection:

If, the company requires a person for the finance department, then the person will be
expected to have at least post graduate degree in the accounting field. If they are selecting a
person for the internal auditor or his assistant, then the person will be expected to hold a degree
of chartered accountancy. The requirement for each post will vary. So, the interviewer will
check whether the applicant satisfies their needs. The applicant should be capable. The sincerity,
general morale of the employee will be taken into consideration.

 Placement:

After the selection process is over, the candidate is given placement. He will be given
some general information about the company, its working, the rules and regulations of the
company. If the appointed person needs training, he will be given proper training in his field by
the trainer. The trained personnel will be able to perform well after his training. After
sometime, if there is room for promotion, the person will be promoted.
 Attendance register:

The attendance register is maintained by the HR department. As and when the employee
enters the company, employee has to submit his/her labour card with attender, the attender
uploads the details in the computer. These details are send to the head office once in a week.

The labour card will have the following particulars:

a) Employee number
b) Employee name
c) Time in
d) Time out
e) Hours worked

The Labour card acts as a proof for the employees‟ attendance.

 Holidays:

Generally, the company does not work on Sundays. The company works on Saturdays
also. Apart from the government holidays, they are given casual leaves and medical leaves. The
no. of days off for a month is about 4 days. If it exceeds there will be a pay cut.
The employees are given a cup of coffee in the mornings and a cup of tea in the evenings.
Apart from this, the employees do not enjoy any sort of recreations.

 Workers of the production department:

The workers who work in the production department belong to the lowest grade of the
working group. There are about 250 workers working in one manufacturing unit alone. These
workers receive the lowest pay when compared to the other employees.
 The factory manager maintains the various records and documents of the production
department. The assistant manager assists the production manager in his job. The supervisors
are the people who go around the production area and inspect the work of the workers.

 Books maintained

The important books that are maintained in the production department are the production
register and the outgoing register.

o Productions register:

The productions register contains the following particulars:

a) Serial no
b) Item code
c) Name of the product
d) Production cost
e) Important expenses
f) Spare parts used
g) Work accomplished
h) Pending work

This register is maintained by the factory manager. All the information regarding the
production area and the job is got from the supervisors. The supervisors help the manager to
update this record. This is very useful to check the work that is pending at any given time.

o Outgoing register:

The following information can be got from this register:

a) No. of units manufactured
b) Type of the product
c) Item code
d) Price
e) Signature of the manager.

The above information is updated by the manager as and when the need arises (i.e.) when a load
is sent out of the production department.

 Rules & Regulations:

a) The prime responsibility of each employee and worker is to be loyal to the company.
b) They should be sincere in their work.
c) They are supposed to report to the managing director whenever any problem arises.
d) They are expected to be in the company at the specified time.

Some important points

 Rewards are given to the workers based on their performance.

 Workers are provided with a hostel facility.
 They have taken the workers for tours to nearby places.
 Meetings are conducted regularly where the MD deals with the problems faced by
workers and provides the solution for them.
o The meeting schedule is in such a way that the MD meets all levels of the
employees
 The communication structure they follow is top to bottom in the manufacturing unit
whereas ideas are always welcome.
 There are no unions formed by the employees and the company has not faced any
problems like strike so far.
 Festivals like Pongal , Diwali and others are celebrated within the company.
 9. MARKETING DEPARTMENT

The marketing department must act as a guide and lead the company's other departments
in developing, producing, fulfilling, and servicing products or services for their customers.
Communication is vital. The marketing department typically has a better understanding of the
market and customer needs, but should not act independently of product development or
customer service. Marketing should be involved, and there should be a meeting of the minds,
whenever discussions are held regarding new product development or any customer-related
function of the company.

The marketing department of KKP Group of companies works in the head office. They
are responsible for getting orders for the yarn production and to represent the company for the
selling of Shirts.

 PRODUCT PLANNING:

Marketing department plans the number of shirts to be manufactured to be manufactured.

Product planning is done based upon the market trend and availability of raw materials and other
resources.
The products available for sales are yarn , cloth , shirts and T-shirts.

 PRICING STRTEGIES:

It follows pricing strategies while fixing price for a product. Approaches of pricing
strategies are internal working cost and external negotiations. Internal working cost can be of
price of raw materials, labour cost etc. External negotiations can be from suppliers of raw
materials and buyers of products. Factors affecting the price and Yarn price, market trend,
chemical cost, labour cost, Dollar value etc.
 BRAND NAME:

For shirts , the brand name is Zest with a tagline is Best of the Best.

 PROMOTION

They have hoardings in some places, they provide offers during the festival times. They
do organic manufacturing.

 PLACE

The yarn produced is directly sold to the customers at Salem and Tirupur. They also sell
their product to other foreign countries through broker at Coimbatore and Mumbai (Merchant
exports).

10.LEARNINGS

The internship at KKP Textiles Ltd helped study and learn the different facets in an
organization. It helped to recognize the nuances in the different departments at KKP. The overall
functioning of company was known. The functioning of the HR department and the financial
department was studied. The Health and the safety measures adopted by the company for its
employees were known.

11.CONCLUSION

After going through the training program, functioning of the organization was observed from
which it can be concluded that KKP Textiles Ltd is an organization which provides various
ranges of products in the textile industry. The company has the strong financial structure and has
a very good reputation in the local market. As they have a larger market for textiles, KKP
industries can increase their target customer base. They have a strong quality policy .The
departments in the company are well organized.