Organizational Study of KSIC Limited

Bangalore Institute of Management Studies

Organizational Study of KSIC Limited

INTRODUCTION

1.1 General information:

Indian history is waking up to the challenges thrown in by market economy. To

survive in this highly competitive scenario, human resources plays a vital role. An

organization is nothing without its “Human resources”.

Growing global, liberalization policy, technological advancement,

increased competition, privatization are the characteristics of todays economy,

which emphasizes the crucial role of managing human resources for the

organizations growth and survival and its growing importance

The field of human resources management is in a state of rapid transition.

It is only the successful corporate edge in todays market place is their ‘people’,

and they should manage their human resources in their “transition”. Managing

human resources is an extremely important part of making an organization work

well.

Managing human resources means acknowledging that the humans

in the organization are the most important part of getting things

done. The human resources approach assumes that no amount of

clever work with figures, or the latest technical equipment , will

deliver anything unless people agree to work in co-ordination with

each other. Thus is applies to everyone in the organization.

“Management is the method of effectively utilizing available resources for the

purpose delivering goods services to the maximum satisfaction of maximum

number of people.

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1.2 Industrial background

The silk weaving factory in Mysore, presently owned by KSIC, was established

in the year 1912 by the Maharaja of Mysore province. Initially the silk fabrics

were manufactured and supplied to meet the requirements of the royal family and

ornamental fabrics to their armed forces.

The unit was started with 10 looms and gradually increased to 44 looms over a

period. The looms and preparatory machines were imported from Switzerland and

was the first of its kind in India. After India gained Independence the Mysore

state Sericulture Dept. took control of the silk weaving factory.

KSIC Ltd was established on 18th April 1980 with assistance by

Government and World Bank scheme under integrated Karnataka sericulture

project. KSIC is the only organization in the Country commanding the entire

gamut of silk production right from the reeling of cocoons to the weaving of pure

silk fabrics, under one roof.

In 1980 the silk weaving factory was handed over to Karnataka Silk

Industries Corporation Ltd., a Govt. of Karnataka enterprise and is popularly

known as KSIC. The take over was enthused by effecting modernization and

expansion assisted by the World Bank to the tune of Rs. 27.30 crores integrated

under Karnataka sericulture project.

1.3 GROWTH AND DEVELOPMENT

The Karnataka Silk Industries Corporation (KSIC) has been awarded the Certificate of

Geographical Indication for Mysore Silk, elevating it to a brand name for its exclusive

use.

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It’s now official. Mysore Silk belongs to Mysore district.

The Karnataka Silk Industries Corporation (KSIC) has been awarded the Certificate of

Geographical Indication for Mysore Silk, elevating it to a brand name for its exclusive

use. Henceforth, all Mysore Silk sarees sold by the KSIC will come with the logo IPI,

meaning Intellectual Property India.

KSIC is also the first state government enterprise to get a logo from the Geographical

Indication Registry (GIR), a Central government body based in Chennai. GIR was

formed to protect the Intellectual Property Rights for Indian goods under the

Geographical Indication of Goods (Registration and Protection) Act, 1999.

The GIR certificate is a sign used on goods that have a special geographical origin and

possess qualities or reputation of their place of origin.

The KSIC also will have the patent rights of Mysore Silk brand and no other organization

can use the same name for other silk products. The other products which have been

awarded GIR certificates include Kanjeevaram Sarees, Basmati Rice, Swiss Watches and

Dutch Tulips.

1.4 PRESENT STATUS OF THE INDUSTRY

KSIC produces 6,000 sarees every year and, armed with the GIR certificate, KSIC now

plans to have a distributor in every state.

EXCLUSIVE STATUS

Manufacturers or traders can use the words ‘Mysore Silk’ to market their silk fabric

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without KSIC’s nod product must be made in Mysore district penal action for

unauthorized use. Every Mysore silk saree will carry a logo –intellectual property India

The two pillars of Korean manufacturing sector are textile industries

(KSIC code 32) and machinery, equipment and electronics industries (KSIC code

38). The output share of textile has decreased from 21.8% in 1970 to 13.7% in

1990 while that of machinery and equipment has increased from 12.2 per ce34.1%

Brief on product:-

KSIC is the only organization in the country commending the entire gamut of silk

production right from reeling of cocoons to the weaving of pure silk fabric of

various shades and designs, all under one roof. KSIC uses only high quality pure

natural silk and 100% pure gold zari. The zari never tarnish and will look fresh

even over a long period of usage. KSIC is the only organization to give guarantee

for its zari saree in the form of embroidered code No. which is unique to each

saree.

Meaning of Trade Mark

There is no specific meaning or direct relation of trade mark with KSIC. There is

a history behind this logo. Once company’s first CEO and MD went to a temple

named as Chennakeshava in Halebidu (Karnataka). There they saw a beautiful

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bird “Hamsa” which is famous for bring diamonds, pearl etc to home wherever it

was present. So the CEO kept the bird as the trade mark for KSIC.

2.1 INDUSTRY PROFILE

It is said that silk was discovered during 2640 B.C. in China. Chinese Empress, His Ling

Shi studied the silkworm and learned the art of unwinding the silk from the cocoon and

made silk fabric from it. This was the beginning of silk industry in China.

Though India is the second largest silk producer in the World after China, it

accounts for just 5% of the global silk market, since the bulk of Indian silk thread and silk

cloth are consumed domestically. Germany is the largest consumer of Indian silk. The

sericulture industry is land – based as silk worm rearing involves over 700,000 farm

families and is concentrated in the three Southern states of Karnataka, Tamil nadu and

Andhra Pradesh. (The states of Assam and West Bengal are also involved in the industry

to a certain extent).

The present market context for silk in India is one of vigorously growing internal

demand for silk fabrics, with growth rates of above 10% per year. It is mostly for

traditional (sari type) design and does not impose sophisticated quality requirements upon

the industry. This situation is likely to continue, unless Indian sericulture is able to

provide sufficient quantities of raw silk at affordable prices. The present trends represent

a limitation to price increases for silk produced in India by import from other silk

producing countries like China, Brazil, Korea etc., as well as by substitution with other

fibers including by artificial silk. It also appears unlikely that the present demands can be

met merely by expanding mulberry area in order to increase cocoon and raw silk

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production. Future additional output is raw silk will therefore mostly have to come from

substantial productivity increases, mainly area and labor productivity.

Concurrently there is a growing demand for silk fabric among the growing Indian

middle class and young urban consumers. These modern silk fabrics typically are

produced by the expanding power loom weaving industry. The quality requirements

imposed by this trend can only be met by bivoltine raw silk for conventional power

looms. The bulk of today’s world export demand is almost exclusively based on high

graded quality bivoltine raw silk. If Indian sericulture is unable to generate a substantial

production of bivoltine raw silk, these important market segments will continue to be lost

outside competitors.

Hence, three main market segments offer great opportunity to India’s silk industry:

(i) The broadening domestic traditional demand multi bivoltine based

(ii) The domestic demand for non – traditional silk fabrics, based at least partly on

non – graded bivoltine raw silk

(iii) The vast and expanding international market for raw silk, silk fabrics and

ready – mades, based on graded bivoltine silk, an export potential as yet

relatively little exploited by India.

In one of the efforts of the Indian Government to promote the sericulture Industry, the

National Sericulture Project (NSP) was initiated as a national project operational in 17

States in India. The projected funded by the Central and State Governments together with

an input of foreign funds, has a credit portion from the world bank and a grant

contribution from Swiss Development Corporation. The project was started in 1989 for a

period of six years with the objectives oriented toward increased production, improved

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productivity, quality and equity. One of the critical elements taken into consideration by

the project was the dominant involvement of the Central and State Government

organizations in the promotion of sericulture.

2.2 COMPANY PROFILE

Mysore is rich for its Royal heritage and Grandeur and it is no surprise that the silk

produced there reflect the traditional splendor through its rich yet delicate motifs. The

name Mysore silk is a befitting tribute to its ancestry. KSIC the proud inheritor of this

royal legacy, has treasured it for over seven decades, has been producing 100% pure silk

with pure gold zari.

We are in the business of manufacturing quality silk products of varied

designs for end user consumption. The products include finest of

designer silk sarees, salwar kameez, shirts kurta’s, silk dhoti and men’s tie. The

silk products are manufactured in our factories located in Mysore district of

Karnataka state, INDIA.

VISION

“To provide employment directly and indirectly by producing goods, products and

marketing effectively in the market”.

MISSION

“Manufacturing and marketing of Mysore silk sarees”.

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2.2 PRODUCT PROFILE

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9



SAREES

Sl.No. Article

No.

Design

No.

Type of

saree

Pallu Body Border Image

1 550/1(E) 2 Crepe Zari Stripes Plain

1/2" Zari

(Both

sides)


1" Zari

(Both

sides)


1" Zari

(Both

sides)


1" Zari

(Both

sides)


1" Zari

(Both

sides)

7 550/4(E) 122 Crepe Zari Stripes Plain 2" Zari

(Both

10



sides)


2" Zari

(Both

sides)


2" Zari

(Both

sides)

10 550/4 CD(E) 121 Crepe Zari Stripes Plain

2" Zari

(Both

sides)

11 550/6 M&J(E) 48 Crepe Zari Stripes Plain

3" Zari

(Both

sides)


3" Zari

(Both

sides)


3" Zari

(Both

sides)

11



14 550/2/8 CD(E) 51 Crepe Zari Stripes Plain

3" Zari

(One

side) 1"

Zari

(Other

side)

15 550/4 (B)(E) 153 Crepe Zari Butta Plain

2" Zari

(Both

sides)

16 550/4 (B) CD(E) 74 Crepe Zari Butta Plain

2" Zari

(Both

sides)

17550/2G1018 (S)

(E)60 Crepe Zari Checks

Small

Checks

1" Zari

(Both

sides)

18550/2G1018 (A)

(E)58 Crepe Zari Checks

Medium

Checks

1" Zari

(Both

sides)

19 550/3G1018(E) 68 Crepe Zari Checks Checks

1" Zari

(Both

sides)

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20 550/4G1018(E) 70 Crepe Zari Checks Checks

2" Zari

(Both

sides)

21 2550/2G1018(E) 69 Georgette Zari Checks Checks

1" Zari

(Both

sides)


1" Zari

(Single

side)


3" Zari

(Single

side)

24 550/2 GS CD(E) 165 Crepe Zari Stripes Lines

1" Zari

(Both

sides)

25 550/1 SPC(E) 135 CrepePich Pallu

StripesLines

1/2" Zari

(Both

sides)

26 550/6W2(E) 80 Crepe Rich Pallu Plain 3" Zari

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Zari(Both

sides)

27 550/6WG1(E) 83 CrepeRich Pallu

ZariChecks

3" Zari

(Both

sides)

28 550/6K2(E) 82 CrepeRich Pallu

ZariChecks

3" Zari

(Both

sides)

29 550/1 Printed(E) 102 (G) Crepe Zari PrintPrint

Allover

1/2" Zari

(Both

sides)

30 550/1 Printed(E) 102 (P) Crepe Zari PrintPrint

Allover

1/2" Zari

(Both

sides)

31 550/2 Printed(E) 103 (B) Crepe Zari PrintPrint

Allover

1" Zari

(Both

sides)

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32 550/2 Printed(E)103

(PG)Crepe Zari Print

Print

Allover

1" Zari

(Both

sides)

33 550/2 Printed(E)103 ( R

)Crepe Zari Print

Print

Allover

1" Zari

(Both

sides)

34 550/2 Printed(E) 103 (B) Crepe Zari PrintPrint

Allover

1" Zari

(Both

sides)

35 955 Printed(E) Printed Crepe

Printed*(*do

not choose

Kasuthi

Design)

Print

Allover

Plain

Printed

15



Crepe pallu zari stripes body plain:

16



”.

2.3 DEPARTMENT PROFILE

1. PERSONNEL DEPARTMENT

Personnel management is concerned with people at work and its aim is to

develop good relationship between management and employee. Personnel

management is that part of total management of an organization, which

specially deals with human resources in respect of

a) Their procurement

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b) Their development

c) Their motivation, towards the attainment of organizational

objectives

DEFINITION

Edwin.B. flippo “ The personnel function is concerned with the

procurement, development, compensation, integration and maintenance of the personnel

of an organization for the purpose of contributing towards accomplishment of the

organization’s major goals”.

PERSONNEL DEPARTMENT IN KSIC LTD.

Personnel department in KSIC Ltd. is a very important and clearly defined

department. The department performs the personnel and administrative functions. It has a

direct link with the employees and understands their needs and wants. The personnel

officer is in charge of this department and under him junior Superintendent, junior

Assistant, Steno Receptionist, Driver, Peon etc.

FUNCTIONS OF PERSONNEL DEPARTMENT

1. Recruitment and selection

2. Training

3. Provide sound program of salary and wage administration

4. Allowance for the employees

5. Provide and maintain safety measures

6. Keep employment records

7. Handle labor problems and employee disputes

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DUTIES OF PERSONNEL OFFICER

1. To arrange for appointment of personnel

2. To arrange recruitment as identified

3. To comply with all statutory rules relating to personnel and

administrative matter

4. To provide job security, job enrichment and job enlargements

5. To provide sound promotion policy providing simple scope for self

advancement

6. To ensure statutory compliance of E.S.I., P.F. etc

7. To collect analyze and present the required data for such discussion or

negotiation between the board of director and the trade union

8. To provide guidelines of the security officer for the implementation of

security measures

9. To attend labor courts and conciliations by the labor and other

departments

10. To prepare and maintain ( update) gradation/ seniority list of all the

employees of the company

Manpower in KSIC Ltd.

The total strength of the employees in KSIC Ltd in 31/03/2005 was 845

according to the records it was 895 in 31/03/2004

MANPOWER OF KSIC

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Category of employees No. of employees

Executive level 9

Middle level Executives 17

Other office staff 212

Workers 607

Total 845

RECRUITMENT

The method by which the company recruits Labor is

1. Direct recruitment

2. Public service commission

3. Employment exchange

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All employees of the individual corporation and companies excluding workers are

defined in the factories Act and Excluding persons employed in the supervisory or

managerial capacity whose basic wages ( Starting ) excluding DA and other

allowances exceeds Rs. 700 are to be recruited through P.S.C

Clerical post such as Steno – Typist, Junior Assistants, Driver,

Receptionist-Cum – Telephone Operator, Maintenance Assistants etc. are filled

up by under P.S.C recruitments. Managerial Supervisory and workers vacancies

are filled up by direct recruitment. The advertisement is published in the

newspapers to fill up the vacancies. The board of director will nominate a

selection council to interview and select the direct recruitment employees.

TRAINING

Training means to give information or skill through instructions or

practical. It is a method for increasing the knowledge and skill of the people for a

specific job.

“Training is the art of increasing the knowledge and skills of

employees for doing a particular job”.

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The training methods are:-

1. On the job training

2. Off the job training

3. Apprenticeship training

ON THE JOB TRANING

This is a common used method for training the operative personnel. The

workers are trained under the same type of conditions they have to work in future. On

the job he can experience the conditions and requirements of actual work situations.

OFF THE JOB TRAINING Off the job training generally consists of conferences,

seminars, lectures, group discussions, case studies, programmers, instructions etc.

APPRENTICESHIP TRAINING In apprenticeship training a worker is appointed as an

apprentice. The company gives apprenticeship training in the following trades.

a) Electrical

b) Plumber

c) Fitting

For selection or incumbent in cash trade, company seeks the list from the regional

training centre, as per the rules.

REMUNERATION TO EMPLOYEES

The minority reward paid by the management to worker or an employee for

the performance of the assigned task is called “wages” or “salary”. Salary is the

remuneration paid to non-operative staff: salaries are paid on a monthly basis to office

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staff, managers and Technical advisors etc. Wages is the remuneration paid to the

workers involved in production. Work and who’s output can be directly measured.

Some employees are working on daily wages.

LEAVE RULES

STAFF WORKERS

Casual Leave 12 Days -

Earned Leave 30 Days 14 Days

National holy days 15 Days 15 Days

Stick Leave 10 Days 13 Days

Encashment of earned leave is permitted only in a year

WELFARE MEASURES

Employees will get PF, ESI, Minimum Bonus and Gratuity benefits.

BONUS FOR EMPLOYEES

The word bonus denotes an incentive payment to the workers aimed at

enhancing their efficiency and loyalty to their organization.

Promotion takes place when an employee moves to a higher than once formerly

occupied. His responsibility, status and pay also increase; the promotions method

adopted here is “seniority Basis”

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RELATIONS BETWEEN MANAGEMENT AND UNION

Most of the employee’s opinion is that there is a healthy relationship

between the management and union. So the management must take necessary steps to

maintain this good relationship. So there is no problem from the part of the union.

ORGANISATIONAL SETUP OF PERSONNEL MANAGEMENT

1. Security

2. Time office

3. Telephone

4. Vehicle

SECURITY OFFICE

Security officer is the head of the security office and under him other

security guards.

DUTIES OF SECURITY GUARDS

1. To issue gate pass

2. Safe guarding factory premises

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TIME OFFICE

Under this section, there is a timekeeper and a clerk. Their duty is to see

that the employee reports in time.

WORKING TIME

Office staff - 10.00 – 5.30

Factory Workers - 8.30 – 5.00

VEHICLES

The security guards are in charge of incoming and outgoing vehicles. A

separate sheet us set – up for keeping the vehicles.

TELEPHONE The telephone operator is in charge of all the incoming and outgoing

call during office time. Security officer in the gate operates the calls, which are coming

after office hour.

DEPARTMENTAL CHART

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SPAN OF CONTROL

The personnel officer is in charge of this department and under him junior Superintend.

Junior Assistant, Steno, Receptionist, Driver, Peon

ORGANIZATION CHART

Personnel officer

Junior superintend

Junior assistant

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Steno ReceptionistDriverPeon



(HEAD OFFICE, BANGLORE)

ORGANIZATION CHART (MYSORE PLANT)

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General Manager Personal Secretary

CHAIRMAN Personal Secretary

General Manager – T.Narsipura

General Manager - MYSORE

Manager F&A - CS

DY. Manager internal audit

Asst. Manager Operation

Asst. audit officer Asst. Accounts

officer Asst. Accounts officer showroom, accounts secretary

Asst. Manager Sales

DY. Manager Personnel

Assistants

Assistants

Internal auditors

Account Asst.Account Asst.

Manager - Sales

Sales Officer Junior OA



Personnel

officer

Dy. Manager

Production

Dy. Manager

Accounts

Purchase and

stores officer

Maintenance

engineer

mech/electrical

Security

Doctor First

aid

ORGANIZATION CHART

(T.NARASIPURA PLANT)

Asst. Manager

CASTING

Dying

Master

Printing Master

Labour welfare

officer

Weaving

Master

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Assistant

Assistant

Asst. Throwing Master

Assistants

General Manager Personal Secretary



Personnel

officer

Asst. Accounts

Officer

Special Officer Cocoon Store

Keeper

Silk Store

Keeper

Asst. Manager -

Maintenance

Mech/Electrical

4.1 HUMAN RESOURCES DEPARTMENT

HUMAN RESOURCE MANAGEMENT:-

29

Asst. Stores cum Purchase Officer



“Human is a management function that helps, manages recruit, select, train and develops

members for an organization. It is obviously concerned with the peoples dimensions in

organizations.”

OBJECTIVES OF HRM:

Societal objectives-to be ethically and socially responsible to the

needs and challenges of society while minimizing the negative

impact.

Organizational objectives-to serve the organization with its

primary objectives and bring about overall organizational

effectiveness.

Functional objectives-to maintain the departments contribution at a

level where it serves the organizations needs tailoring the

department according to the requirement of the organization.

Personal objectives-to assist employees in achieving their personal

goals, if these goals of employees are met it helps the organization

to maintain retain and motivate the employees.

INTEGRATION AMONG FUNCTIONS:-

Each business unit consists of several departments such as

manufacturing, sales, finance, HRD, MIS, marketing, finance R7D and

so on. All these departments should identify their basic course of

action in order to help the business unit attain its goals and objectives,

managers should be aware that all these functions are inter related and

must mesh its activities with the activities of other departments.

Because a change in one department will definitely affect the way in

which other departments operate.

MOTIVATION:-

“Motivation is the process that account for an individuals intensity,

direction, and persistence of effort toward attaining a goal”.

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“Motivation is a process of stimulating people to action to accomplish

desired goals”.

MOTIVATION HAS THREE DISTINCT FEATURES:-

It results from a felt need. Motivation triggers behaving

impelling a person to action.

It is goal-directed. Motivation is a driving state that channels

behaviour into a specific course that is fulfillment of felt need.

It sustains behaviour in progress. It persists until the

satisfaction or reduction of need state occurs.

MOTIVATION IS NECESSARY:-

To stimulate employees to accomplish

desired goals.

To boost the employees morale.

To develop sound human relations.

To increase efficiency and output.

To develop team spirit.

To inspire employees for responsible

and challenging jobs.

To promote healthy competition among

employees.

PROBLEM BASED ON HRM DEPARTMENT

1) Everyone has motivational energy. Although many problem employees

display a marked lack of drive and commitment in their jobs, these qualities

are usually alive and well in other areas of their lives.

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2) The energy which the problem employees possess is often blocked in the work

place. The blockage may occur because of new and sudden stress at home or

frustrated dreams or broken promises at work.

3) Removing blockage of energy requires peoples participation. To motivate an

employee to work towards organizational goals, it is necessary to find his or

her locus of energy and leverage it. Instead of pushing solutions on people

with the force of argument, the manager should pull solutions out of them.

4) Beyond a certain point, there is no need to show mercy to problem people.

THE FOLLOWING ARE SOME TIPS TO DEAL WITH PROBLEM

EMPLOYEES :

I. Try to reach out the employee even if it appears to be climb down on the

boss part. This is necessary in the interest of the organization. Failing

this, think of the next.

II. Change the place of work. Probably a new peers and a new environment

may change the employee. Failing this, think of the next.

III. Issue verbal threats-threats of severe actions. Severity of actions

contemplated to vary from workers to managers. Higher the hierarchy,

graver the severity. Failing this, think of the next.

IV. Translate threats into actions. If problem employees are workers,

suspension may work. If the problem employees are managers, sack

them.

4.2 PRODUCTION DEPARTMENT

Definition:

Alee cairn cross: “production is the making of goods for sale or the

rendering of paid services. The making of goods, however, must not be interrupted too

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literally to mean the creation of some material object; we do not so much make things as

make them more serviceable. We create, not material object, but utility.”

PRODUCTION DEPARTMENT IN KSIC LTD

The production department is largely connected with manufacturing and its allied areas,

such as, determination of quality and quantity to be produced, production planning, work

analysis, quality control etc. production department also deals with clerical work relating

to various activities of a production of finished products, material Requisition, Stock

Records etc. production department is headed by Production Manager, Plant Engineer,

Charge Man, Maintenance Assistant and various Supervisors.

PRODUCTION

Production is concentrated in the existing two plants namely

1. Silk weaving & printing plant (MYSORE)

2. Silk filature plant

1. Mysore - Silk weaving & Printing silk products

The Factory is located in the heart of the Mysore city and is spread over

acres. The raw silk yarn Filatures obtained from T . Narasipura factory and open

Market are put thro. various process and Quality silk products are produced for end user

consumption. The factory has an installed capacity of 8,00,000 Mtrs per annum.

The factory is provided with various high end equipments so as to produce best of

silk. The factory started with 10 looms in 1930 under the rulers of erstwhile Mysore

Kingdom today boasts of more than 159 looms, two Warping machines & Pirn

Machines and any no. of Preparatory Machines. Most of the machines are imported

from Switzerland and Japan.

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KSIC silk product are well appreciated in the market due to its 100% pure silk blended

with 100% pure gold Zari ( 65% of silver & 0.65% of Gold ).

The sarees manufactured are of unmatched quality come in varieties to suit the customer

tastes viz: Crepe-de-chine, Georgette, Zari printed crepe silk sarees, semi crepe sarees.

The sarees are printed or dyed. The sareess come in a splash of over 100 different colors

and any no. of design combinations. Some of the design combinations are:

Embroidery Design saree

Big Butta Pallu Zari

Rich Pallu Sari Saree

Jawar Border Saree

Small Mango Saree

Zari Printed Saree

Saree Tissue Saree

Traditional Zari Saree

Checked Zari Saree

Mango Border Saree

Sunrise Design saree

Butta Pallu Saree

Double Line Checks Saree.

Based on the taste of the end consumers the sarees are printed and dyed with suitable eye

catching colors. Various approved quantity of approved chemicals are added at various

stages as per silk manufacturing standards to retain the luster and quality of the silk

fabric. The sheen and the visual luxury of the crepes are only to be experienced. At 75

gms per metre, the KSIC silk sarees have an unmatched drape. These crepes have delicate

strands of zari interwoven in spectacular designs, in the borders and the pallu. The printed

crepes are tributes to designing and come with a double advantage of possessing the

crepe's softness and a vibrant range of designs from floral to geometric.

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To protect esteemed customers from imitation of KSIC silks, KSIC have given a special

embroidered number for each one of the sarees with a unique number and hologram.

Other products of silk include soft silks, hankeys, Neck Ties, Stoles, Cravats, dupion

fabrics etc.

2. T. Narasipura - Silk Filature

Silk Filature refers to raw silk manufacturing unit. The unit manufactures raw silk yarn

and transfer to meet the raw material requirement of silk weaving factory in Mysore.

The factory is located in T. Narasipura, Mysore District in an area of approx.

15 acres. The factory is headed by a General Manager. The factory supplies raw silk yarn

to their own silk weaving Factory located in Mysore. Approximately 1000 Kgs. of

cocoons are purchased daily from Govt. Controlled Market depending on needs

and raw silk yarn known as filatures are produced. The purchase is done on almost

daily basis as the purchased cocoon cannot be stored for more than 2 to 3 days.

Capacity

Installed Capacity : 225kgs /day

Actual production : 120 Kgs/day

The factory uses the best Technology per say in raw silk manufacturing. It follows the

international silk association standards and has the following stringent parameters for

testing using standard Machineries.

a) Renditta -

This refers to amount of Kgs of cocoons required to produce 1Kg of raw

Silk yarn

b) Type of Cocoon -

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Multivoltaine Cocoon : 8 to 8.5 Renditta

Bi-Voltaine Cocoon : 6.5 to 7 Renditta

Grade of Raw Silk Yarn

Grade A, Grade 2A, Grade 3A, Grade 4A, Grade 5A

International Silk association Standards to test the following

Denier - weight in grams/Mtr

Tenacity

Elongation

Cleanness

Neatness

The silk filature plant uses modern Japanese & Korean Machineries having denier control

to produce quality silk yarn.

The Unit uses two types of reeling

I) Automatic – Japanese Machinery

ii) Semi-Automatic – Korean Machinery

The Cocoon purchased form Govt. controlled Market undergoes various stages

of production viz; Sorting, boiling, brushing & reeling. Silk yarn is passed thro. buttons

and pulley (Croiser) to maintain tenacity and elongation and wound on a reel. Re-reeling

is done to make the silk yarn into a continuous length and convert it into hanks. Reeled

yarn is passed thro. yarn guide and made into big reel. The approximate weight of yank is

100 to 120 grams. To maintain quality the silk yarn undergoes various process like silk

skinning to remove gum spots manually. The unit is in the process of implementing ISO

9002 standards

DEPARTMENTAL CHART

36



SPAN OF CONTROL

Production department is headed by production manager. Under him

Stores officer, Plant Manager, Plant Engineer, Dye Master, various supervisors and

workers etc.

Production Manager

37

Maintenance Assistant

Supervisor Supervisor

General Worker

Workers Sticking Helpers, Sharers,

Stenciling, Workers Etc.Power loom plants

Supervisor/ Maintenance Assistant

Weavers, Packing Workers, Cops, Winders

Dyeing, bleaching, workers

ManagerProduct

Development

Dye MasterCharge Man

Reeling Plant Engineer

Plant Engineer

Senior Supervisor

Store officer



4.3 FINANCE DEPARTMENT

DEPARTMENTAL CHART

38



Financial management is responsible for estimation of financial resources. Financial is

lifeblood of every business. Therefore it is most important and complicated for business.

Finance department in KSIC LTD is needed by finance manager and

under him accountant, junior superintend and cashier.

FUNCTIONS OF FINANCE DEPARTMENT IN KSIC LTD

1. Finalization of accounts

2. Preparation of wage sheets

3. Maintain cost records

39

Finance Department

Account Grade

Account Grade - 2

Junior AssistantCashier



4. Budget making and set target to be achieved

5. Setout the financial requirements, loans, income expenditure etc.

DUTIES OF FINANCE MANAGER:

1. Keep the books of accounts of the company up-to-date.

2. To inspect the accounts of the company.

3. To monitor all the financial transactions of the company.

4. To arrange the reconciliation of the book of accounts of the company with the

book of accounts of the company

REGISTERS AND BOOKS OF ACCOUNTS

The managers should keep proper books of accounts, registers and other

documents. He should maintain proper and accurate records of accounts of working of

the company. Copies of the balance sheet shall supply free on demand of any members.

The books generally kept in finance department are

1. Cash book

2. General Ledger

3. Bank Book

4. Sales Journal

5. Purchase Journal

Comparative Statement showing the fabrics sales from April 2003 to

March 2004

Sl.No. Months April 2003 to March 2004 ( Rs. in Lakhs )

40



Zari PrintedDress

Materials

Total

Meters

Gross

Sales

Discount

Rs.

Net Sales

Rs.

1. April 2835 110 663.40 16860.90 123.49 10.85 112.64

2. May 3667 165 1154.40 22230.40 161.03 16.57 144.46

3. June 2818 115 838.70 16970.20 124.88 11.30 113.58

4. July 3653 247 873.70 22323.70 163.96 22.06 141.90

5. August 5412 336 1250.00 32864.00 243.22 34.83 208.39

6. September 2449 130 649.00 14833.50 106.59 8.45 98.14

7. October 6789 481 3929.00 43914.00 316.19 48.30 267.89

8. November 3811 945 2990.00 29148.00 189.80 26.32 163.48

9. December 15623 2867 8451.50 110146.50 716.77 227.07 489.70

10. January 4168 201 21001.20 45030.70 201.69 32.75 168.94

11. February 4106 194 7503.95 31153.95 211.88 52.09 159.79

12. March 12253 645 9996.05 80935.05 562.10 140.61 421.49

Total67584 6436 59300.90 466410.90 3121.60 631.20 2490.40

Comparative Statement showing the fabrics sales from April 2004 to

March 2005


41



Zari PrintedDress

Materials

Total

Meters

Gross

Sales

Discount

Rs.

Net Sales

Rs.

1. April 5189 218 3443.20 33181.70 238.43 65.79 172.64

2. May 3214 247 1355.70 20391.20 149.62 25.18 124.44

3. June 2148 159 2291.40 14979.90 97.71 5.26 92.45

4. July 2686 468 1910.50 19257.50 118.3 19.06 99.24

5. August 5068 493 2024.00 32609.50 227.35 25.67 201.68

6. September 4367 199 1265.15 26378.15 191.48 22.17 169.31

7. October 3669 182 1413.00 22593.50 168.51 19.39 149.12

8. November 5023 239 1300.50 30241.50 230.71 26.24 204.47

9. December 3697 113 1026.75 21981.75 163.24 19.02 144.22

10. January 5671 115 180.70 32003.70 259.10 48.79 210.31

11. February 4491 124 1989.75 27372.25 196.46 37.77 158.69

12. March 7896 147 769.65 45006.15 361.53 65.20 296.33

Total53119 2704 18970.30 325996.80 2402.44 379.54 2022.90

Comparative Statement showing the fabrics sales from April 2005 to March 2006


42



Zari PrintedDress

Materials

Total

Meters

Gross

Sales

Discount

Rs.

Net Sales

Rs.

1. April 8087 141 403.70 45658.00 378.20 81.27 297.13

2. May 4574 120 419.05 26236.00 206.22 29.62 176.79

3. June 3992 123 300.90 22933.40 182.62 26.22 156.53

4. July 3946 82 152.75 22306.75 192.41 28.62 163.79

5. August 5220 201 109.75 29925.25 261.08 36.89 224.48

6. September 4241 145 230.45 24353.45 208.40 29.26 179.15

7. October 6836 179 431.50 39014.00 341.04 47.23 294.11

8. November 5262 165 5053.50 34902.00 264.38 51.38 213.15

9. December 4492 294 5316.30 31391.80 243.85 40.42 203.62

10. January 4386 241 419.75 25868.25 229.96 30.59 199.56

11. February 3202 149 345.35 18775.85 173.45 23.90 149.96

12. March 12259 369 645.35 70099.35 701.16 148.73 552.42

Statement showing the fabrics sales against the target during the month

of June 2007

43



Sl.

No.Sales Point

Target - Rs. in

Lakhs

Annual Jun-07

Rs. Rs.

SALES ARCHIVED

Jun-07

Cumulative

up to Jun '07

Rs. Rs.

Correspon

ding Sales

during

June 2006

Cumulativ

e Sales

Correspon

ding year

up to June

06

1

Exhibitions/

Institutional

Sales

400 33.00 2,358,043 3,969,851 2,777,338 6,394,883

2

Bulk

Buyers/Distributor

s

100 8.00 11,630 5492245 - -

3 KSIC Showrooms 3,860 258.00 31,771,104 82,857,978 29,849,646 66,027,141

4 Consignment Sales 50 4.00 129,465 592,975 198,462 595,874

Total 4,410 303.00 34,270,242 92,913,049 32,825,446 73,017,898

Comparative Statement showing the fabrics sales from April 2006 to till date 2007

Sl.No. Months

April 2006 to March 2007 ( Rs. in Lakhs )

Zari PrintedDress

Materials

Total

Meters

Gross

Sales

Discount

Rs.

Net Sales

Rs.

44



1. April 3,517 144 1,908.70 22,044.20 19,479,773 3,082,802 16,413,988

2. May 3,555 172 256.05 20,754.55 20,712,679 2,843,725 17,880,862

3. June 5,210 251 328.55 30,364.05 32,825,446 5,793,904 27,054,445

4. July 4417 99 203.25 25041.25 27229934 4136772 23093162

5. August 6679 164 268.70 37905.20 40716879 7763246 32953633

6. September 3510 119 399.30 20358.80 21405750 3375383 18030367

7. October 7496 259 376.35 43028.85 46074549 6324269 39750280

8. November 4400 90 564.65 25259.65 26916396 4755502 22160894

9. December 6913 270 646.00 40152.50 41848919 9792244 32056675

10. January 5098 179 360.65 29384.15 31069217 5632113 25437104

11. February 3553 108 498.85 20634.35 21544738 3841628 17703110

12. March 12353 659 1812.39 73378.39 77264568 16549915 60714653

Total66701 2541 7623.44 388305.94 407088848 73891503 333197345

Comparative Statement showing the fabrics sales from April 2007 to till date 2008

Sl.No. Months

April 2007 to March 2008 ( Rs. in Lakhs )

Zari PrintedDress

Materials

Total

Meters

Gross

Sales

Discount

Rs.

Net Sales

Rs.

45



1. April 7,119 183 484.80 40,645.80 30,699,659 4,624,029 26,101,258

2. May 3,942 490 332.70 24,708.70 27,943,148 5,006,581 22,962,225

3. June 4,832 173 482.35 28,009.85 34,270,242 6,670,576 27,629,874

4. July - - - - - - -

5. August - - - - - - -

6. September - - - - - - -

7. October - - - - - - -

8. November - - - - - - -

9. December - - - - - - -

10. January - - - - - - -

11. February - - - - - - -

12. March - - - - - - -

Total15,893 846 1,299.85 93,364.35 92,913,049 16,301,186 76,693,357

4.4 MARKETING DEPARTMENT

SALES AND EXPORT DEPARTMENT

The term selling may be defined as the performance of those activities that

direct the flow of goods and services from producer or seller to consumer or user.

This department is headed by commercial officer, under him sales executives and

other staffs

46



DEPARTMENTAL CHART

MARKETING STRATEGIES:-

The present market context for silk in India is one of the vigorously growing

internal demand for silk fabrics, with growth rates of above 10% per year. It is mostly for

traditional (sari type) design and does not impose sophisticated quality requirements upon

the industry. This situation is likely to continue, unless Indian sericulture is able to

provide sufficient quantities of raw silk at affordable prices. The present trends

represents a limitation to price increases for silk produced in India by import from other

silk producing countries like China, Brazil, Korea etc., as well as by substitution with

other fibers including by artificial silk. It also appears unlikely that the present demands

can be met merely by expanding mulberry area in order to increase cocoon and raw silk

47

Commercial Department

Sales StaffSteno, Typist

Sales ExecutiveSenior Assistant (Sales)



production. Future additional output is raw silk will therefore mostly have to come from

substantial productivity increases, mainly area and labor productivity.

Concurrently there is a growing demand for silk fabric among the growing Indian

middle class and young urban consumers. These modern silk fabrics typically are

produced by the expanding power loom weaving industry. The quality requirements

imposed by this trend can only be met by bivoltine raw silk for conventional power

looms. The bulk of todays world export demand is almost exclusively based on high

graded quality bivoltine raw silk. If Indian sericulture is unable to generate a substantial

production of bivolitne raw silk, these important market segments will continue to be lost

outside competitors.

HENCE THREE MAIN MARKET SEGMENTS OFFER GREAT

OPPURTUNITY TO INDIAS SILK INDUSTRY:-

o The broadening domestic traditional demand multi bivoltine based

o The domestic demand for non-traditional silk fabrics, based at least partly

on non-graded bivoltine raw silk

o The vast and expanding international market for raw silk, silk fabrics and

ready –mades, based on graded bivoltine silk, an export potential as yet

relatively little exploited by India.

FUNCTIONS RELATING TO EXPORT

Receipts of intend

Receipts of enquiry

Dispatch of acknowledgement of intend

Preparation of goods for export

Arranging insurance coverage

Obtaining shipping order

Dispatching goods

Checking of customers formality

48



Sending documents to the importer

Receiving payment

Claiming benefits

Price

Price is a basic and critical factor; in generally the return on capital investment

of business enterprise. Pricing methods and policies contribute directly to the success or

failures of a business irrespective of any other single profit activity. KSIC is following a

good pricing policy which is providing the ultimate consumer their privilege of getting

goods at reasonable price.

Sales

The company sales are made through its on units it has around 15 showrooms in

India in different locations, in that 4 of them are in Bangalore, and there is a good

network system of consignment agents which will take care of internal and international

markets. KSIC now introduced online marketing facilities, which will cater to the

customers inside and out side India.

ISO 9001 – 2000 programs

KSIC Ltd got ISO 9001 – 2000 Certificate in the year of 2004, company

is now working under the guidance of ISO

Advertising Strategy for Selling

It is a blend of pure Mysore Silk….Naturally Splendid # emotionally yours

49



PURCHASE AND SALES DEPARTMENT

In ordinary sense the term purchasing is the procurement of

materialism, machinery and tools on payment. But today purchasing has acquired

new dimensions and such as it may be defined as “the functions of procurement with

a view to reduce the investment, variety and value of materials so as to facilitate the

standardization and competitive marketability of the product”.

50



Functions of purchase department in KSIC

To maintain regular flow of materials

To purchase at a competitive price, the right quality from a right

source

To ensure higher productivity of men, machine and materials

To ensure production of better quality of products at competitive

costs

Method of purchasing

KSIC adopt centralized purchasing. It includes purchase of raw materials,

stores, land and equipment. Fund, stationary, supplies, chemicals etc. all bulk purchases

are petty purchases are made though this department except maintenance purchase.

Maintenance purchases are made by administration section.

Procedure in the purchase department:

Receiving purchase requisition:

This stores office as and when purchase requisition or intends are received

from the concerned department. It should before two or three weeks.

Exploring the source of supply:

The selection of right source of supply is very important from the point of view of

getting the materials in the time and desired quality at a price. The different categories of

suppliers are found out through advertisement, tender, etc. the quotations are compared

with others and from this the best is selected. The chemicals are purchased by yearly

quotations. In KSIC, two types of suppliers are found.

51



Manufacturing

Distributors or commission agents

QUALITY CONTROL

The company has been set up a quality control section for the purpose of quality

control and research and development. The company has a continuous research and

development programmes a result of which, they can identify new product lines. The

quantity control ensures the consistent quality products.

OBJECTIVES OF QUALIY CONTROL

1. Continue improvement in operations

2. Improvement in export turnover

3. Consumer satisfaction

FUNCTIONS OF QUALITY CONTROL

Quality inspection

Quality of silk and fabrics are checked during various stages of production

such as dyeing, weaving, stenciling etc if the quality of the product is beyond the

standards prescribed then it is rejected.

Product Development

52



This function includes the development of original products, modifications

etc. these functions are done in accordance with the taste and preference of customers.

Designing

Designing of silk products are done by both designers of international

reputes and national reputes. They creates new concepts and trends in the area of

weaving colour combinations.

FINDINGS;-

1) Lack of direct feed back

2) Improper client relationship

3) Lack new learning

4) Less unique experience

5) Control over resources

6) Lack scheduling own work

7) The person selected as a supervisor may not be qualified

and this may lead to poor supervision

8) Changes in technology

9) Misunderstanding between the workers and managers

53



10) Lack of raw material supply

11) Direct feedback

12) Client relationship

13) Lack of communication skills

14) Slow growth of the organization

15) Large number of workers

5.1 SWOT ANALYSIS:

STRENGTHS:-

1) KSIC is a limited company.

2) KSIC awarded the certificated of geographical indication for Mysore silk,

elevating it to a brand name for a exclusive use.

3) KSIC is the only organization to give guarantee for its zari saree in the form of

embroider code number which is unique to each saree.

4) KSIC uses only high quality pure silk and 100% pure gold zari.

5) KSIC have a patent rights of Mysore silk brand

54



.

WEAKNESS:-

1) Lack of technology

2) Lack of skilled labours

3) Highly competitive companies

4) More than 45 dealers in Bangalore were misusing the name of Mysore silk

5) Other silk product are saled by the products in the name of Mysore silk

OPPORTUNITIES:-

1) Providing employment opportunity for rural people

2) Employees will get PF, ESI, minimum bonus and gratutity benefits

3) Giving apprenticeship training for workers

THREATS:-

KSIC Managing Director P Vijayan told Deccan Herald that the certificate

would help control misuse of the brand name.”During an investigation in

2004, KSIC found than more than 45 dealers in Bangalore were misusing the

name of Mysore silk. They continued to market other silk products in the

name of Mysore silk, after which their dealership was cancelled,” he added.

The KSIC will also be coding every saree borders. The code will contain the

name of weaver and the date of weaving. In case of complaints, the weaver

can be traced immediately.

KSIC produces 6,000 sarees every year and, armed with the GIR certificate, KSIC now

plans to have a distributor in every state

55



5.2 OBJECTIVES OF THE STUDY

1. Societal objectives

2. organizational objectives

functional objectives

personal objectives

3. functional objectives

CONCLUSIONS AND RECOMMENDATIONS

1. DIRECT FEEDBACK: Employees should be able to get immediate knowledge

of the results they are achieving. The evaluation of performance can be built in to

the job (as in an electronic spell-checker indicating the presence or absence of

errors) or provided by a supervisor.

56



2. CLIENT RELATIONSHIP: An employee who serves a client or customer

directly as an enriched job. The client can be outside the firm (such as a mechanic

dealing with a car owner) or inside (such as computer operator executing a job for

another department).

3. NEW LEARNING : An enriched job allows its incumbent to feel that he is

growing intellectually. An assistant who clips relevant newspaper articles for his

or her boss is , therefore, doing an enriched job.

4. UNIQUE EXPERIENCE: An enriched job has some unique qualities or futures,

such as quality controller visiting a supplier.

5. CONTROL OVER RESOURCES: For each employee to have control over his

or her resources and expenses. For ex., He or she must have the authority to order

supplies necessary for completing his job.

6. COMMUNICATION SKILLS: Communication skills refer to clarity of

thought correct word usage, grammatical accuracy proper delivery of messages,

correct spelling or pronunciation, and proper organization of sentences or

7. speeches. Absences of these makes it difficult for the receiver to understand the

message clearly.

8. SCHEDULING OWN WORK: Freedom of ones own work contributes to

enrichment. Deciding when to tackle which assignment is an example of self

scheduling. Employees who perform creative work have more opportunity to

schedule their assignments than those who perform routine jobs.

9. A qualified person must be selected by an interview.

10. Giving a proper apprenticeship training about the new technical machines to the

workers.

11. Well co-operation between the supervisors to the workers.

12. Quality raw material should be supply at a time.

13. Good relationship between the producers to the clients/consumers.

14. Proper communication skills must be applied to the organization.

57



15. Improving the growth of the organization like, development of technology,

communication skills, qualited raw materials and time management etc.

16. Unnecessary workers should be reduced

.

58

Organizational Study of KSIC Limited

Documents

mysore silk sarees

words mysore silk

silk products

weaving of pure silk

textile industries ksic

mysore state sericulture

human resources approach

available resources