Rubco

A PROJECT REPORT ON

“ORGANISATION STUDY AT RUBCO”

CONTENTS

LIST OF TABLES

CHAPTER – 1 INTRODUCTION 1

CHAPTER – 2 RESEARCH METHODOLOGY 5

CHAPTER – 3 INDUSTRY PROFILE 12

CHAPTER – 4 COMPANY PROFILE 37

CHAPTER - 5 DEPARTMENT PROFILE

CHAPTER – 6 SWOT ANLAYSIS

CHAPTER – 7 CONCLUSIONS

BIBLIOGRAPHY

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CHAPTER – 1

INTRODUCTION

3

INTRODUCTION

Organizational study is a direct investigation about the functions and

activities carried out in an organization. It gives a clear insight into real life

situation. Such studies enable others to know about the functions and the

importance of each department in an organization.

Organization refers to the structure of relation among positions and jobs

which are building up for the realization of the common objectives it prescribe

the relationship with various positions and activities in the business which is

help by persons. In other words organization is a harmonious adjustment of

some common purpose. Organization involves the dividing and grouping to the

work to be done in an enterprise.

To know more about the organization, its functions and activities, an

organization study of “RUBCO CO-OPERATIVE LTD” was done.

This short time study helps to get an overview about production

department, finance department, marketing department and H.R. Department of

Rubco.

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CHAPTER –II

RESEARCH METHODOLOGY

5

RESEARCH METHODOLOGY

The study is about the major functioning of RUBCO rubberized coir

mattress division; Pampady. The study is mainly based on the details collected

from each department. Each and every activities of the company is studied very

carefully with the data available. This study is very beneficial to the future

managers as they put into the real life situations. A study on all the departments

can help to improve the process and there by overall improvements in the

company’s performance can be made.

2.1 Objectives of study

The organization study was done on behalf of the fulfillment of MBA degree.

The organization study was conducted for the following purpose.

i. To have an understanding of the profile of Rubco Mattress Division and

its various activities

ii. To acquire knowledge regarding the functional as well as the managerial

aspects of the company

iii. To find out problems if any and to put forward suggestions

iv. To get an idea of the organization and its various departments

v. To get familiarize with various activities of the company

vi. To get the feel of actual working environment and to get acquainted with

it

vii. To learn and maintain a good relationship with the organization

6

2.2 Reason for selecting the company

For conducting an organization study that would be beneficial, the

company selected should have large number of departments and also should be

one that is engaged in active performance in production. Service and marketing,

and higher growing opportunity.

The prime consideration in selecting Rubco RCM LTD for the study is its

tremendous growth during the past years. It has all the major departments

including finance, marketing, purchase, production and planning, maintenance,

quality control, human resource and exports.

2.3 Limitations of the study

The period available for the study was limited. A detailed study of all the

functions in the organization couldn’t be completed in the time frame.

Busy schedule of the officers and employees prevented lengthy

discussion.

Reluctance from the organization to give all information required for the

study.

Information collected from workers and employees are only true to

certain extent.

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2.4 Data collection method

The study includes both primary and secondary data

1. Primary data

Data were collected from various sources like formal and informal

interview and discussion with mangers and other officials at various levels.

They are the actual data collected by the researcher through the following

source.

Formal and informal interviews managers

Direct observations

Interview with the employees

2. Secondary data

Secondary data were collected from published and unpublished sources

like official records, organizational manuals etc. these are the secondary source

of data which are obtained indirectly. The researcher has taken information

from the following ways.

Official records of RUBCO

Organizational manuals

Annual reports

Websites

Magazines

8

2.5 Period of study

The period of study was 46 days commenced from the month of July 20 th

to September 4th 2011

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CHAPTER III

INDUSTRY PROFILE

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INDUSTRY PROFILE

Rubberized coir mattress segment is a high competitive. This segment is

having more than 50 % of the market share in the mattress industry. Rubberized

coir mattress industry has more than 45 odd brands and over 200 different

models. The major players in the industry are Kurl – on, Duroflex, Sulfex,

Rubco and Sunidra.

The birth of rubberized Coir Industry is quite amusing and interesting. Prior to

the year 1960 people hardly had any idea of this novel and high utility product.

In those days the world famous car manufactures, M.S. Volks Wagon of

Germany, were using horse hair as cushion filling material for their car seats.

As their production increased from 100 cars per day to 300 cars per day, there

was dearth of this raw material. This necessitated a suitable alternative product

for rubberization and which would suit to their specifications, after various

alternative tried like sisal fiber, jute fiber, the coir fiber was decidedly found to

be the best. This was the beginning of Rubberized coir industry. The Indian

rubberized Coir Industry is nearly five decades old. It was in 1964 that M/s/

Bharat Motors of Chennai established its manufacturing unit. Many other units

came up during sixties itself.

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After nearly one decade of its introduction. Government of India recognized

Rubberized coir mattress as a healthy and hygienic product. Slowly many state

Governments recognized rubberized coir as “Wealth from waste” and advocated

the use of rubberized coir mattress in various hospitals, health clinics etc.

OTHER TYPES OF MATTRESS ARE

Cotton Mattress

Form Mattress

Spring Mattress

COTTON MATTRESS

The cotton mattress mainly targets lower income group. This mattress is

priced very low. The cotton mattress industry has a market share of 50%.

FORM MATTRESS

Form mattress segment comes at next place after rubberized coir mattress

industry. This industry having a market share of 9 to 10% this industry mainly

target consumer belonging to upper income and upper middle income group.

The major players in form industry are MM form, sleep well.

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SPRING MATTRESS

The industry target consumers belonging to the upper income group. The

major players in spring industry are spring well, Sealy Kurl – on etc.

GROWTH DURING LAST 4 DECADES

From a handful of manufactures, during early 60s this product got some

market recognition in early 70s. In the next 3 decades over one hundred

manufactures have entered rubberized coir field. Today rubberized coir products

are increasingly used in many industries notably in transport industry like

railways and buses, packaging industry (Pharmaceuticals, heavy engineering,

electronic etc), hospitals theatres and auditorium. The basic raw material for

Rubberized Coir Industry is the brown coir fiber and the natural latex rubber.

Over the last decade, the brown coir sector has registered a tremendous growth.

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WORLD SCENARIO

There are mainly three major players in the industry and are as follows

a) Sealy Corporation

Sealy Corporation is the major mattress manufacturer and it got the name

from the place it started, Sealy, Texas.

b) King Coil

Founded in 1988, Koil has over a century of experience crafting high –

quality, affordable bedding both in United States and throughout the world.

C) SIMMONS BEDDING COMPANY

Simmon Bedding Company is a major manufacture of mattress and is one

of the oldest companies in the United States, for over 152 years.

INDIAN SCENARIO

The rubberized coir mattress market of India is estimated to be highly

fragmented with little brand loyalty. The major players in the rubberized coir

mattress industry in India are.

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a) Kurlon Limited

Kurlon Limited, a Manipal group company came into existence in 1962.

Kurlon Limited is the brand leader in the mattress industry and has acquired

major market share in the branded mattress segment.

b) Duroflex

Duroflex is the largest exporter of sleep and comfort products from India

started its operations in 1963. Now the company has got three manufacturing

units for rubberized coir mattress.

c) Century Mattress

Century fiber plates Pvt. Ltd. Started its rubberized coir plant at Hyderabad

in 1988 under the brand name “CENTURY”. Century is the first mattress

manufacturer with ISO – 9001 -2000 series and ISI Certification.

STATE SCENARIO

In India, the coir industry has developed very well especially in Kerala

where they produce ‘Retted Fiber’. Green husks of coconut are immersed in the

salty back waters for 10 to 12 months. The main players in rubberized coir

mattress industry are

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a) Duroflex

Duroflex is the leading mattress manufacturer in India which started its

operations in 1963. Duroflex is the largest exporter of sleep and comfort

products from India

.

b) Eastern Sunidra

Eastern sunidra Mattresses pvt. Ltd.. Is a part of Kerala’s renowned

business conglomerate, the Eastern Group of Companies.

C) RUBCO

Kerala State Rubber Co-operative Limited (Rubco) was set up in the year

1997. Rubco was incepted with prime objective of effectively utilizing the

abundant rubber resource of Kerala.

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The Indian coir industry has a diversified structure, reflective of the board

ranges of raw materials and value – added products involved. The industry

provides at least part – time employment to an estimated 40,000 persons. At the

beginning of the value chain are approximately 300 fibers milers with usually

less than 10 employees and an estimated 500 supplies of coir pith, or dust. Their

output is either purchased for direct export or undergoes manufacturing for

twine, mats and brushes, rubberized coir mattresses and pots, geo textiles and

pith products. Products, which are technically more demanding or better, suited

for mass production, such as high – end twine, brushes, rubberized coir and

erosion control blankets are predominantly produced in larger facilities,

employing more persons.

Now in rubberized coir mattress industry the competition is more and more, the

demand of the product is in growth stage. So only the quality mattress industry

can survive in the competitive world.

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CHAPTER III

COMPANY PROFILE

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COMPANY PROFILE

Kerala state rubber Co-operative limited (RUBCO), is situated in Kannur;

Kerala State, India, is promoted by the provisional Government of Kerala to

promote Rubber based industries in this part of the country.

Today India enjoys 4th position in the production of natural Rubber (NR)

in the world. Among the total production, small state of Kerala contributes 92%.

So rubber has become the backbone of our economy. Due to the bad impact of

globalization the overall market of rubber fell down Kerala, that time instability

in price of rubber was one of the major problem that farmers facing in the

market. The farmers were no getting fair price for their effort. But this problem

has come to an end since 1997, because The Kerala State Rubber Co-operative

Ltd. (RUBCO) came into existence in this year on the purpose of exploring the

infinite possibilities of rubber. Since its inception in 1997, RUBCO has traveled

long. It has entered into various Rubber and Rubber wood based industries like

Hawai Chappel with reputed Malaysian Technology, Cycle Tyres and Tubes,

Rubberized Coir Mattress, conventional and procured tread rubber, block

Rubber (SMR), Pale Latex Crepe (PLC), casual shoes etc.

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VISION AND MISSION

For last half decade with a vision to become a global leader in the

production of Natural rubber products and innovative product development,

RUBCO adopts the best and latest process in the production.

“RUBCO means Rubber and Rubber means RUBCO”

Today, from a single unit company, RUBCO has grown into a Rs. 280

Crore Conglomerate with well diversified operations. Divisions operating under

Rubco Group are involved in a wide range of business such as footwear,

furniture, cycle Tyre and Tube, Rubberized Coir Mattress and Natural Rubber.

Rubco is the largest Exporter of Natural Rubber to all leading Rubber based

companies in India. Rubco is led by a professional management team and

supported by a committed workforce. Rubco is now poised to enter a high

growth phase with several initiatives that will take the Group on path Expansion

and Diversification.

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OBJECTIVE SOCIAL

To ensure a steady market with remunerative price to rubber growers for

their natural rubber

Welfare of rubber grower particularly of small and marginal segment

OBJECTIVE COMMERCIAL

To Promote, establish, maintain and manage the business related to

manufacture and sale of tyres, both radial and bias for Heavy Vehicles,

LCV, Passenger Cars and other four wheelers.

Tyres for three wheelers and two wheelers

Purchase and sale of rubber in any form such as Latex, Sheets, Crumbs

and Laces

Manufacturing of Rubber Wood based on products

GROWTH AND DEVELOPMENT OF ORGANIZATION

Kerala State Rubber Co-operative Ltd (RUBCO) has in a short span,

redefined the way the cooperative sector functions and set the pace for the co-

operative Movement in Kerala today. Rubco was set up in the year 1997 with

the objective of effectively utilizing the abundantly available rubber resources

of Kerala. Today, from a single unit company, Rubco has grown in top an

Rs.280 crore conglomerate with well diversified operations and market presence

extending beyond the boundaries of Kerala. Rubco manufactures and markets

variety of products from footwear to furniture, from Cycle tyre tube and tyres to

mattress.

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Rubco has also entered into technological alliances with world leader in

the respective field; sourcing from them state –of –art technology. Substantial

investments in modern manufacturing facilities, coupled with well organized

marketing activities, have seen Rubco’s products earn a reputation for quality

and significant market shares.

Rubco is largest exporter of natural rubber in the country today. Even in

the domestic market, Rubco is a major supplier of natural rubber to all leading

Tyre combines in India. Rubco is also a Government intervention agency

towards market stabilization and has been serving the farming community

directly and indirectly to get reasonable price, arresting drastic fall in price

during peak production periods; natural rubber trading has being a blend of

social obligation and commercial practicability led by a professional

management team and ably supported by a committed workforce, Rubco is now

poised to enter a high growth phase, with several new initiatives that will take

the group on a path of expansion and diversification rubber holds immense

potential, Rubco hopes to create opportunities and bring Industrial progress to a

land that accounts for 92% of the country’s natural rubber production.

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ADMINISTRATION AND MANAGEMENT

The Administration and management of RUBCo vests in the Board of

Directors consisting of fifteen members as follows:

Nine directors elected by ‘A’ class shareholders from among themselves

Two directors elected by ‘B’ class shareholders from among themselves.

Four ex – officio directors viz

Register of cooperative societies, Kerala

Chairman of the Indian Rubber Board

President, Kerala State Cooperative Bank Ltd.

Managing Director, Rubco

CHAIRMAN : Mr. E. Narayan

He is a veteran Co-operator and is holding various positions as Chairman in

Central and state level cooperative organization.

MANAGING DIRECTOR : Mr. Jacob D. Mathew

He has more than 25 years of experience as CEO in corporate sector.

OTHER DIRECTORS

1. Sri. M.V. Koman Nambiar

2. Sri. Panneri Mukundan

3. Sri George Mathew

4. Sri V. N. Vasavan

5. Sri U. Azzez

6. Sri N. Chandran

7. Sri K. Manoharan

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8. Sri V.P. Saseendran

9. Sri K.S. Gopi

10.Smt Satyabhama K.N.

11.Smi Jacob D. Mathew

12.The Chairman Rubber Board, Kottayam

13.The Registrar of Cooperative societies, TVM

14.The President,Kerala State Cooperative Bank, Trivandrum

PROMOTERS

Government of Kerala along with Indian Rubber Board and some district

and primary Cooperative Banks in Kerala are the promoters of RUBCO.

Government of Kerala holds the majority of the shares. The top share holder are

Government of Kerala, Rubber Board, Kottayam District Cooperative

Bank,Ernakulam District Cooperative Bank, Palakkad District Cooperative

Bank, Kannur District Cooperative Bank, Thrissur District Cooperative Bank,

Trivandrum District Cooperative Bank and Kollam District Cooperative Bank.

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MILTESTIONS OF RUBCO

9th June 1997 Registered RUBCO, Commenced

operations in October in the year same

year

15th October 1997 Commenced procurement of rubber

17th February 1998 Commenced procurement of rubber

from farmers through depots

28th May 1998 Foundation stone laid for foot wear

manufacturing factory and thread

rubber manufacturing unit at

Koothparambu, Vaiuavelicham

Industrial Centre.

June 1998 Exported rubber to Singapore & Nepal

July 1998 RUBCo takes over the reins of

Sreekandapuram Latex (Pvt). Ltd

11th February 1999 Entred in to an important agreement on

technological collaboration for

manufactures of ultra light weight

footwear with H-tech sectors

2nd March 1999 Foundation stone laid for P.L.C.

factory in Sreekandapuram

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23rd June 1999 Signed significant technical

collaboration agreement with long

Huat Berhad of Malaysia for the

processing of wood and furniture that

13th August 1999 Rubco Footwear hit the market

19th October 1999 Foundation Stone laid for the rubber

wood processing and furnituring unit

30th October 1999 Foundation stone laid for Rubberized

coir foam Factory at Pampady ,

Kottayam

9th December 1999 Entered into an agreement with M/s

Tog Teik (Pvt) Ltd of Singapore to

Export 15000 Metric tons of rubber

first time from India.

8th March 2000 Entered in to a technical collaboration

with Pancarwarna management and

Consulting service. Malaysia for

Manufacture of casual of shoes.

6th May 2000 Foundation stone laid for casual shoe

project

1st January 2001 Rubco huat wood furniture factory

commenced commercial production

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16th June 2001 Incorporation of RUBCO tire India Pvt.

Ltd

20th April 2002 Started activities of coconut complex

for the production of virgin coconut oil

and ancillary products

6th December 2002 Started RUBCO RUFAS Scheme

(collection of natural rubber latex

from farmers)

20th December 2002 Expression of interest submitted to

the government of Kerala for setting

unit for the production of rubber

components for automobiles and with

a capital. Outlay of 20 million USD

23rd January 2003 Signed MOU with Coconut Pacific Pvt.

Ltd of Australia for the production of

Coconut Virgin oil

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PRESENT STATUS OF THE ORGANIZATION

Rubco is a well diversified industrial conglomerate with a strong presence

in the rubber based industrial segment. Rubco was formed with the prime

objective of utilizing abundantly available rubber resources of Kerala. In a short

span of time Rubco has successfully introduced a wide range of fast moving

rubber based products. Today Rubco group of companies has established new

factories of Rubber Footwear, Cycle Tyres & Tubes, Rubberized coir mattress,

processed rubber and rubber molded coir mats.

RUBCO FOOTWEAR DIVISION-Making Impressive Strided

Rubco’s footwear division manufactures a range of quality casual rubber

Footwear. The plant employs sophisticated machinery and has production

capacity of 3.6 million pair’s annum. The product range includes sturdy regular

and comfy ultra-light (manufactured under the renewed Malaysian technology),

perfect blend, quality raw material and superior manufacturing methods make

the Rubco range second to none. In the short span, Rubco has made its presence

felt in fiercely competitive markets on account of the excellent quality of its

products. This division also manufactures honey comb rubber mats in

fascinating colors.

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Rubco’s footwear range presently comprises of three leading brands Rubco

Hawaii, Rubco Rainbow and Rubco Classic, Rubco Hawaii has durable flexi

strap, soft insoles and power grip technology, offering true value for money,

Rubco Rainbow is a colorful range of ultra light casual footwear with cushioned

insoles and extra soft straps. Rubco classic is a top quality Hawaii that provides

excellent wearing comfort and durability.

RUBCO CYCLE TYPES& TUBE DIVISION- On the Fast Track

Rubco Cycle Types & Tube division has already gone on stream

manufacturing a range of sturdy, technologically superior cycle tyres and tubes

suitable for rough terrains and track. The production facility spread over 25000

sq.ft. Is equipped with modern imported machinery including Taiwan made

CNC mould which imparts better finish to the tyre. The plant has an annual

installed capacity of 3 million tyre and tube. Rubco’s range of cycle tyres and

tubes has advanced features such as high non skid depth improved wet-skid

resistance. High tensile copper coated steel bead wires add durability and rim

holding capacity. The entire range of cycle tyres is being exported to the U.K.

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RUBCO HUAT WOODS PVT.LTD- Design on the Future.

A joint venture with Long Huat Group Berhard of Malaysia, a world

leader in rubber wood furniture, this division manufactures a range of elegant

furniture and quality edge-geld panels using the eco-friendly rubber wood.

Rubber wood properly treated and processed, is emerging as the deal substitute

to rain forest wood, as it offers the same strength, durability and finish as the

latter, and also helps preserve the environment. The furniture manufacturing

plant has a processing capacity of 40.000 metric tons per year. The products are

being exported to UK, USA, Japan and many other countries across the globe.

Rub wood, the furniture range, comprise of dining tables and chairs, designer

wardrobes, futons kitchen cabinets and computer and office furniture and is

available in the choice of designs and finish. The edge-geld panels

manufactured using sophisticated finger jointing technology, are easy to saw,

drill, bore on stain and have excellent nail- holding capacity.

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RUBCO SREEKANDAPURAM LATEX PVT. LTD- Tapping new

opportunities.

Rubco Sreekandapuram Latex Pvt. Ltd became a part of the Rubco group

when a loss- making unit was taken over by Rubco by acquiring 65% of its

shares. In a short span of time, by sound backroom operations unit was turned

around and is today posting profits. The company manufactures Block Rubber

( ISNR) and pale Latex Crepe( PLC).Rubco is in the process of expanding the

scope of operations of this unit in line with market trends .

RUBCO SALES INTERNATIONAL LTD- Crafting Winning strategies

Rubco Sales International (RSIL) is a public Ltd. Company promoted by

Rubco to spearhead the sales and the marketing activities for Rubco’s entire

range of product in the domestic and international markets. Within a short span

of its inception, RSIL could effectively develop a deft, competent network

domestically as well as globally and undertaken the successful launch of

Rubco’s product. Apart from gathering market information and monitoring the

supply chain system, this division is also responsible for nurturing and

sustaining excellent customer relations.

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VIRGIN COCONUT OIL

The project envisages establishment of 100 co- operative coconuts

processing units in kerala. To start with, this will be increased to 200 units

subsequently for the production of coconut oil directly from green coconut nuts

without going through conventional copra or milk route. The process

methodology is commonly known as Direct Micro Expelling (DME)

Technology. The centralized packing unit is at Thalassery in Kannur District.

The place is accessible by road and rail from all other parts of the country. The

place is blessed with all infrastructure facilities for setting of such a project.

Coconut oil extracted from fresh coconut kernel by Direct Micro Expelling

Technology is of very high quality and commands a premium price because of

its use as a health product. This is a highly sought after item as a health product

and is used as massage oil and also as baby oil for massaging small kids.

Coconut oil is a much sought after product for edible use in the households and

non-edible use as hair oil and as cosmetic and industrial oil.

The project also proposed to set up a centralized packing cum marketing unit

for Virgin coconut oil manufacturing the cooperative processing units.

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FUTURE OF THE ORGANIZATION:

The main future plans and the progressing proposals of Rubco group are:

RUBCO TYRES INDIA(PVT) LIMITED

Rubco is in the process of setting up a project for the manufacture of tyres

and tubes for two and three wheelers, passenger cars, heavy duty trucks and

light commercial vehicles. The ground work is underway and the division will

be launched in the near future. It will have a production capacity of 6 million

tyres and tubes annually.

Location:

The project will be located in the proposed industrial growth centre being

developed at Valiyavelicham, about 35 Kms from Kannur city.

Capacity and Product Mix:

The plant will have a 2.33 million numbers of radial and bias tyres per

annum which 75 million would be utilized for the truck drivers, 1.5 million for

light type passenger’s tyre and balance would be for two or three wheelers.

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RUBCO CASUAL SHOE PROJECT

Investment: 96 million

Employment:600 persons

Location :Thalassery, Kannur district, Kerala

Capacity:1.5 million pair per annum. 75% of the production is earmarked for

export.

RUBCO MATTRESS DIVISION

Rubco’s rubberized coir mattress division, at Poothakuzhy near Pampady,

Kottayam which started its operation in 2001, is an ambitious project realized

with an investment of 260 million. The manufacturing plants among the very

few in the country to employ advanced Austrian machinery, sourced from

DOA-Austria a technology leader in rubberizes mattress.

Rubco’s rubberized coir mattress division is an ambitious project realized with

an investment of Rs. 280 Millions. The manufacturing plant is among very few

in the country to employ advanced Austrian machinery, sourced from DOA,

Austria.

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Rubco rubberized coir mattresses are scientifically designed to provide proper

back support without compromising on comfort. By virtue of their ingenious

design and constructing and the unique 3-D technology, Rubco rubberized

mattresses are very comfortable and ensure a healthy and restful sleep. Rubco

rubberized coir mattresses are crafted from the finest materials and finished to

perfection in one of India’s most modern manufacturing plants.

The furnishing section is equipped with most modern computer controlled

machines imported from U.K and U.S.A. Strict quality control is observed at

every stage of production to ensure that Rubco rubberized coir mattress always

measure to the highest quality.

A unique of the main sheeting plant is that it facilities Vertical fiber Orientation,

a proceed that result in a deeper penetration of latex in to the sheet, making it

very elastic. This provides the mattress with uniform density throughout and an

extra cushioning effect.

The plant has an annual installed capacity of 4.8 million units, consisting of

mattress and other rubberized coir products.

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THE UNIQUE VFO ADVANTAGE

Rubco rubberized coir mattresses are manufactured using the machinery as

well as technology from DOA sheet forming machine has the unique advantage

of producing uniform density vertical oriented fiber sheets. Vertical Fiber

Orientation (VFO) ensures extra cushioning effect and high durability in the

mattresses. Further, considerable sheet thickness and densities varying from

80kgs to 250kgs can be obtained.

36

PRODUCT PROFILE OF RUBCO RCM

DIVISION

Rubco manufactures a wide range of mattresses catering to diverse segments

of the market. The range consists of:

a) HEAVEN

Premium model that provides unmatched sleeping comfort is available in 3

inch and 4inch thickness. Also available in customized dimensions and

thickness for large quantities (100 and above)

b) HEAVEN PLUS

A luxury model that is elegant as well as comfortable, which is available in 5

inch thickness.

c) HI-TECH

A hi- end model with an accent on finish and luxury available in 5 inch

thickness.

d) HITECH PILLOW TOP

Superior quality mattresses finished to world class standard is available in

7 inch thickness.

e) DOSTH

An economy model that offers true value for money is available in 2 and 3

inches.

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f) SAFAL

A regular mattress that combines comfort and durability is available in 3

and 4 inches

(g) YATHRI

An elegant mattress meant for hotels, Tourist resorts etc. Yathri combines

superior sleeping comforts with perfect back support, enabling a relaxed healthy

sleep. Layer upon layer of rubberized coir and latex enhance the comfort while

soft and elegant quilting adds a luxurious feel for use in hospitals is available in

3 & 4 inch thickness.

h) HEAL

A quality product suitable for use in hospitals. Available in 3 inch and 4 inch

thickness.

i) RELIEF

A special mattress scientifically designed for orthopedic patients.

Available in 5 inch thickness.

(J) 9.30 PM

Economy model. Available in 3 inch and 4 inch thickness.

OTHER PRODUCTS FROM FACTORY

i. Rubberized coir block

ii. Coir block

iii. Cushions

iv. Soft touch pillows

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ORGANIZATIONAL GOALS AND OBJECTIVES

GOALS

The organizational goal of Rubco –RCM division is to make Rubco a

leader in the market of rubberized coir mattress.

OBJECTIVES

1. Maximize the capacity utilization of the existing plant

2. To increase the profitability of the company and to maximize

generation of surplus to enable Rubco to finance its diversified

projects.

3. To execute production on time, in accordance with the market demand

of the product and to make them available to the distributors.

4. To maintain and improve the existing cordial relationship between

employees and management by mutual interactions levels and further

improve efficiency of executives, supervisors to meet future

challenges.

5. To ensure strict quality control and ISI standards of the product to

compete in the global market.

6. To maximize the cost reduction.

7. To introduce new varieties of mattress so as to increase the range of

mattress catering to the diverse segment of the market.

39

PRESENT STATUS OF THE ORGANISATION

RUBCO is a well diversified industrial conglomerate with a strong

presence in the rubber based industrial segment. Rubco was formed with a

prime objective of utilizing abundantly available rubber resource of Kerala. In a

short span of time Rubco has successfully introduced a wide range of fast

moving rubber based products. Today rubco group has factories of rubber

footwear, cycle tyre and tube, rubberized coir mattress, processed rubber and

rubber coir mats.

ORGANISATIONAL STRUCTURE

Organizational structure is the structure of relationship among positions

and job created for the purpose of accomplishing the objectives of the

enterprise. It represents the pattern of relationships among the components of an

organization. They are:

-The form of structure.

-The form of structure.

-The functions to be performed.

-The human aspect

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The pattern of relationship governs duties and activities of persons who

are dependent upon each other for accomplishing the objectives of the

enterprise. An organization structure should be designed to clarify who is do

what tasks and who is responsible for what results, to remove obstacles caused

by confusion and uncertainty of assignment and to furnish decision making and

communication networks reflecting and supporting enterprise objectives. The

company organization structure is diagrammatically represented by an

organizational chart. The organization chart shows the lines of responsibilities

between various departments of the company.

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CHAPTER IV

DEPARTMENT PROFILE

43

DEPARTMENTS

Departmentalization is a method of arranging activities to facilitate the

accomplishment of organizational objectives. The organizational process of

determining how activities are to be grouped is called departments. The

departments show the horizontal differentiation in an organization.

The main departments are:

1. Administration cum personal department

2. Finance and accounts department

a. Stores department

b. Purchase department

3. Production department

a. Production (main plant)

b Production (furnishing)

c. Product development

d. Production planning and control

e. Lab and quality department

f. Engineering department

4. Marketing department

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ADMINISTRATION CUM PERSONNEL DEPARTMENT

Human Resource Management

HRM is the process of acquiring, training, appraising, compensating

employees and attending to their labour relations, health and safety and

fairness Concern. In other words HRM is the people concerned dimension in

management. Since every org is made up of people, acquiring their services,

developing their skills, motivating them to higher level performance and

ensuring that they continue to maintain commitment to the org are essential

to achieve organizational objectives. This is true regardless of the type of the

organizational, government, business education, health recreation and social

action.

HRM refers to a set of programmes, functions and activities designed and

carried out in order to maximize both employees as well as organizational

effectiveness.

The main functions are;

a. Conducting job analysis

b. Planning Labour needs and recruiting job candidates

c. Selecting job candidates

d. Conducting orientation and training programs for new employees.

e. Managing wages and salaries

f. Providing incentives and benefits

g. Appraising the performance

h. Communication with employee9 interviewing, counseling,

discipline)

i. Training and developing managers

j. Building employee commitment

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STRUCTURE OF THE DEPARTMENT

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RESPONSIBILITIES OF HR MANAGER

(a) The HR manager is responsible for the manpower planning,

recruitment, selection, training compensation package,

performance appraisal, maintaining discipline and harmonious

industrial relationship Rubco RCM.

(b)He is responsible for providing advices and guidance / assistance

to the officers and staff working in the unit under the control of

The General Manager in the matters connected with performance

appraisal, discipline, harmonious relation, training, optimum use of

time, achieving the targeted production etc.

(c) HR manager is responsible for obtaining necessary function for

the creation of posts, pay scale and other required sanctions from

managing director / chairman for filling up manpower

requirements from time to time.

(d)HR manager shall be responsible for the proper administration of

the statutory and non statutory welfare programming in the Rubco

rubberized coir mattress division.

(e) HR manager shall be responsible for complying with various

labour legislations.

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(f) The HR manager is responsible for formulating HR policies and

interpretation of different labour laws.

(g)The HR manager is responsible for preparation of wages and salary

bills and passing it to finance department for disbursement.

(h)The HR manager is responsible for identifying the training needs

of the organization and its employment and prepare training

calendar and arrange various training programmes for the

employees. In its essence HRM is the qualitative improvement of

human being who is considered the most valuable asset of an

organization, the organizational resources and end users of all

products and services. In brief the function of HRM are.

1. Job analysis

Job analysis is the procedure through which a HR manager has to determine

the duties of the position and characteristics of the people to hire for them.

2. Human Resource Planning.

Human resource planning is understood as the process of foresting an

organization’s future demand and supply of the right type of people in the

right time at the right place. In other words HRP is the process by which an

organization ensures that it has right number of and the right kind of people

at the right place at the right time, capable of effectively and efficiently.

Completing those tasks that will help the organization achieve its overall

objectives.

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3. Recruitment:

RUBCO RCM division follows a centralized system of recruitment

programmes and its implementation is done at corporate level. Recruitment is

the process of searching for and obtaining applicants for jobs from among

whom the right people can be selected.

4. Selection

Selection is the process of differentiating between applicants in order to

identify and hire those with a greater likelihood of success in a job. Selection is

concerned with picking the right candidates from a pool of applicants. Selection

is negative in its application as it seeks to eliminate as many unqualified

applicants as possible in order to identify the right candidate. In RUBCO RCM

division selection of employees are done at two levels-workers level and at the

managerial level.

5. Job Description:

Job description is preparing for a number of different purposes in an

organization. The area follows.

To define responsibilities of a job.

To review the organization structure and distribution of duties with the

organization for the job evaluation.

For the foundation of performance appraisal

To provide information about a post to be filled for recruitment/selection

purpose.

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6. Personal Specification:

Personal specification is a set of criteria developed from the job and

organization context which describes the skill and attributes of a job holder.

A personal specification helps to:-

- Provide an objective standard against which candidates can measure. It helps

to avoid purely subjective judgment.

- Personnel specification will help identify training and development plans for

successful candidates. It is most useful to find a candidate for a job who fulfills

all requirements.

Rubco rcm division is conducting interviews in their selection process. The

question and acceptable response are specified in advance and are rated for

appropriateness of content.

8. Orientation and placement.

Orientation, also called as induction, is provide a new employee with the

information he or she needs to perfume comfortably and effectively in the

planned induction programme for the fresh employees about their job, their co

workers and the organization . Thus orientation programme conveys three types

of information.

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General information about the daily works routine.

A review of the organization history, founder, objectives,

operations and products or services as well as how the employee’s

job contributes to the organizational needs.

A detailed presentation of the organization polices, work rules and

employee benefits.

After the orientation programme, the evaluation of the programme is

conducted by time interview. After giving orientation programme for the

new employees, Rubco rubberized coir mattress division is taking care of the

placement of the employee because when an employee has been hired or

oriented he or she must be placed in his /her first job. Placement is

understood as the process of allocation of people to the job . It is the

assignment or reassignment of an employee to a new or different job.

9 .Training and development

RUBCO RCM DIVISION HR authority is conducting training and

development programe for employee to improve current and future

employee performance by increasing an employee’s ability to perfume

through learning, usually by changing the employee’s attitude for increasing

his /her skill and knowledge .The need for training and development is

determine by the employee’s performance deficiency.

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10. Performance appraisal

Performance appraisal is the systematic evaluation of the individual with

respect to his/ her potential for development. Rubco RCM division conducts

performance appraisal once in a year. The method for performance appraisal

is for evaluating performance of employees on rating scale method because

this is the simplest and most popular technique for approving employee

performance . The typical rating scale system consist of several numerical

scale, each representing a job related performance criterion such as

dependability, initiative, output, alternatives, attitudes, cooperation and the

like . Each scale ranges from excellent to poor.

11.Welfare measures:

Labour welfare is a term which must necessarily be elastic, It has some what

different interpretation from country to country according to the different social

customs, the degree of industrialization and educational level of workers. The

management of Rubco is well aware of the growing necessity of welfare

activities and pursues a policy of improving the facility aimed at total well

being of its workforce . They are:

A. Al employees in the organization are covered under the employee state

insurance (ESI) scheme. No other insurance scheme prevails in this

organization

B. Festival allowances are given to the employee on the occasion of notified

festivals.

C. Annual bonus/ incentives are paid out to the employees as per the

company rules.

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12. Relation between employees and management :

The relationship between manager and employee must be handle effectively as

both the employee and the organization are to propose together whether or not

some of the employee’s rights must be addressed. It is important to develop

communication and update HR polices and rules so that managers and

employees will know what is expected.

13. Trade Union

Employee association constitutes one of the stakeholders relations. This

association are popularly known as trade union. The trade union that exists.

In RUBCO RCM is RUE (Rubco Employee Union) . There is a cordial

relationship that exist between and union . The union is lead by CITU.

Safety measures in Rubco Mattress Division

Cleanliness and drinking water: The factory and its premises are kept spick and

span. The accumulation of dirt is removed daily. Effective arrangement is made

at suitable points suited for all workers employed there with sufficient supply of

drinking water.

First aid: First aid facilities are provided in the factory for all the employees.

Safety : A well equipped security force is provided for safeguarding everything

inside the factory premises.

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FINANCE DEPARTMENT

Financial Management

Financial management, also referred to as corporate finance or managerial

finance ,emerged as a distinct field of study at the turn of 20th century. Finance

theory in general, rests on the premise that the goal of financial management

should be to maximize the wealth of shareholders.

Finance Management Department

Finance refers to the application of skills in the manipulation in the use and

control of money. The finance in the modern business world is the life blood of

the business economy. We cannot imagine a business without finance because it

is a central point at all business activities.

Financial Function

a. Passing and settlement of all miscellaneous advances.

b. Perform works connected with insurance coverage of fixed asset.

c. Keeping personal life of employees relating to salary computation

and annual increment.

d. Prepare profitability trend reports and wage analysis.

e. Quarterly and yearly financial report preparation.

f. Making banks statements

g. Preparation assisting the coordination at all works connected with

finalization of accounts.

h. Assisting statutory/ Vigilance / auditors from head quarters.

i. Make internal and external purchases.

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Capital budgeting

The capital budgeting is done at the being of the year itself. The requirement of

capital will be specified for approval. During the budgeted year, if any further

requirement of capital is faced then a proper justification has to be made . If the

requirement is seen as an important one then approval of the capital is

sanctioned.

Cash management

Cash management system is done of the key areas in any business. Apart from

the fact that it is the most liquid asset, cash is the common denominator into

which all current assets can be reduced because other major liquid assets,

receivable and inventory get eventually converted into cash.

Credit control function

A trade credit arises when a company sells on credit and does not received cash

immediately. A company grants credit to protect its sales from the competitors

and to attract potential customers to buy its product at favorable terms, Credit

period allowed is 6 days to 90 days. The collection of credit will be handled by

senior sales officers up to 180 days and it will be handed over to the factory

manager. The company will give the creditors a further of one month, then legal

action will be taken against the person or the company. If the cheque has

bounced or has been dishonoured then the company can sue or take legal action

against the person or the company.

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Planning of funds.

Planning of funds is a careful estimate made by the manager about the total

funds required. This is the estimation done by the observation over the physical

activities of the company.

Allocation of funds.

Providing funds to proper place at proper time is also an importance task to be

done by the financial manager. He studies the cash requirement of each

department and then funds are distributed.

Recording transactions

Each and every transaction that takes place in the company has to be recorded

properly for the purpose of having better control over the funds optimality. All

the transaction are recorded in journal and posted to the ledgers.

Fixed assets.

Fixed assets from the major part of the working of any company. Depreciation

of fixed assets is charged on diminishing balance method.

Cost control

The cost is controlled either in the acquisition of raw materials or reduction in

operating expenses or both, as there should be limitation in the utilization of

funds. The company will always have a comparison of budgets and actual.

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Stock in Stores

Store department is an auxiliary department of the financial department . The

major purpose of this department is to receive raw mate materials from the

suppliers to different departments and there after verify the bill/ invoice to

ensure of incoming materials and to confirm the quality and value with purchase

order.

Inventory management

Management of inventory means an optimum investment in inventories . It

should neither be too high to block the funds unnecessarily nor be low to halt

the production for the wants of materials. The inventory management includes

the following aspects.

Size of inventory – maximum level and minimum level.

Establishment- timing schedule procedure and lot of size for new

orders.

Ascertaining minimum safety level.

Coordinating sales, production and inventory policies.

Providing proper storage facility.

Arranging the receipts, disbursements and procurement of materials and

developing the form of recording the transaction.

Arranging responsibilities for carrying out inventory control function and

providing the report necessary for supervising the overall activities.

For effective inventory management in a business unit there should be proper

coordination of activities and policies of the purchase, production and sales

department.

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Working Capital management.

Working capital management is managing the current assets and current

liabilities of a firm in such a way that a satisfactory level of working capital is

maintained. i.e. it is neither inadequate nor excessive. Working capital

management policies of a firm have a great effect on its profitability, liquidity

and structure wealth.

STORES DEPARTMENT

Stores department is an auxiliary department. It function under accounts officer.

STRUCTURE OF STORES DEPARTMENT

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Functions of Stores department

1. Receipt of incoming material.

2. Efficient and orderly record keeping of all materials in storage.

3. Storage of material in safe and conventional location

4. Issue of material against written authority

5. Timely intimation to proper authorities regarding out of stock condition.

6. Prevention of damages, losses and unauthorized uses etc.

7. Rejected materials managements.

8. Sales return management

9. Maintenance of accounts.

Material documents of this department are produced in coordination with the

production department. Monthly check and other periodical checks are done to

certify the actual inventory values in quantities . There is a separate section for

rejected product. Rejected products are stored in stores department itself. Such

products are inspected before and after by the quality control department. Such

products are sold out as separate sale items.

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Classification of materials

Raw materials

-Latex

-Coir

-Chemicals

-Cloths

-Fabrics

General Engineering Materials

-Electrical items

-Mechanical items

-Capital item tool etc

Stationery Items and Furniture

-Furniture

-Paper

-Bill books

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PURCHASE DEPARTMENT

This is the department which purchases the required raw materials for the

production of mattress. So this department can be said as, the backbone of

Rubco. The store keeper verifies the materials and if it goes beyond minimum

require level, he will inform it to the accounts officer and he will pass on the

information to the general manger. The general manager then does further

action to buy the required raw materials. The main function of purchasing

department is to ensure unintempted flow of production.

STRUCTURE OF PURCHASE DEPARTMENT

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PURCHASE OFFICER

JR. CLERK JR. CLARK

Purchase Functions :

Source identification:

Source identification involves the identification of suppliers from which

purchase are to be made.

Source selection:

Source selection involves selecting the best supplier from different suppliers,

which is based on desired quality, quantity, price ,service etc.

Vendor rating:

This responsibility lies with Rubco head office. Vendor rating is done on the

basis of product, price of the materials and the reports from the production

department in the case of latex or chemicals.

Receipt of material:

Materials are collected by the receipt store and the details will be given to the

section for inspection. Number of items passed, rejected and the reason for

rejection if any will be specified. Receipts store will then prepare materials

receipt report and then sent it to the concerned sections i.e.; purchase and

accounts .The original will be retained by the receipt store.

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CLASSIFICATION OF MATERIAL

The materials used in Rubco RCM division are broadly classified as:

RAW MATERIALS:

Latex, coir rubber chemicals, cloths and qualified fabrics, PU forms and

threads.

GENERAL ENGINEERING ITEMS:

Electrical items, Mechanical items, spare parts and capital item tools.

STATIONARY ITEMS AND FURNITURE:

Office equipments, papers & bill book, cleaning products.

PURCHASE PROCEDURE

1. Requisition

The power of approving material requisitions is with rubco head quarters.

2. Purchase Proposal:

After purchase requisition has been approved by the head office, the order is

placed.

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3. Purchase order:

After fixing the right supplier, purchase order is prepared and placed with

proposed party. The order rate, quantity, delivery schedule and terms of

payment will be mentioned.

4. Vendor rating:

The responsibility lies with the Rubco head office. Vendor rating is done on the

basis of product, price of the material and reports from the production

department in the case of latex or chemicals.

6. Receipt of materials:

Materials are collected by the receipt store and the details will be given to the

section for inspection. Number of items passed and reason for rejection if any

will be specified. Receipts store will then prepare materials receipt report to be

sent to the concerned section i.e.; purchase and accounts. Original copy will be

retained by the receipt store.

PRODUCTION DEPARTMENT

RUBCO RCM division has progressively recorded high productivity and

profitability.

Production department is equipped with efficient and qualified managers and

supervisors.

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STRUCTURE OF PRODUCTION DEPARTMENT

1) Production (Main Plant) :

The main raw materials used for the production of bare mattress are the

curled fiber. The purpose of rubber latex is to bond the resilient curled coir

fibers together and to impart a shape to the product. Raw materials and coir is

acquired by the company from internal sources. Along with the main material

compounding, chemicals are also required for the production. Most of the

compounding chemicals are purchased internally.

PRODUCTION MANAGER

PRODUCTION MAIN PLANT

PRODUCTION FURNISHING

PRODUCT DEVELOPMENT

LAB AND QUALITY DEPARTMENT

PRODUCTION PLANNING

ENGINEERING DEPARTMENT

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STRUCTURE OF PRODUCTION DEPARTMENT (MAIN PLANT)

Shift IN-Charge

Production Supervisor Production Supervisor Production Supervisor

Skilled Operator

Skilled Operator

Skilled Operator

Skilled Operator

Skilled Operator

Highly skilled Workers

Skilled Workers

Semi Skilled Workers

Unskilled Workers

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PRODUCTION CAPACITY:

Rubco mattress production facility is among the very few in the country to

employ state-of-the-art Austrian machinery. The machinery as well as the

technology is sourced from DOA of Austria. The plant has annual install

capacity of 4.8 million units comprising of mattress, pillows and other

rubberized coir products. The furnishing section is equipped with most modern

computer controlled machines imported from UK and USA. Strict quality

Control is observed at every stage of the production to ensure that Rubco

rubberized coir mattress always measure up to the highest standard.

The no: of workers are

Highly skilled - 19

Skilled workers - 23

Semi skilled - 30

Unskilled - 45

Casual worker - 99

Temporary worker - 13

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2) PRODUCTION (FURNISHING):

Furnishing department is carrying vital part in the total production function of

rubberized coir mattress division. . The furnishing department shall be

responsible for the furnishing of different models of mattress and cushions as

per standards. The section is also responsible for the inspection of mattress and

cushion labeling, packing and dispatching of mattress and cushions. The bare

mattress from production department is brought into furnishing department and

it is fabricated with rexin and clothes and is packed and made ready for

dispatch.

STRUCTURE OF FURNISHING DEPARTMENT

Shift In-Charge

Production Supervisor

Production Supervisor

Production Supervisor

Highly Skilled Workers

Skilled Workers Unskilled Workers

Semi Skilled Workers

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MAJOR MACHINES IN THE FURNISHING DEPARTMENT

1. Quilting Machine

2. Border Stitching Machine

3. Tape Edge Machine

4. Sewing machine

5. Comer Cutting Machine

6. Fabric cutting Machine

7. Sealing Machine

8. Handle stitching machine

Consumables required for furnishing department

1. Quilted fabrics

2. PU Forms

3. Clothes

4. Threads

5. Expanded poly ethylene sheets

6. Threads

7. Labels

8. Poly ETHYLENE covers

9. Tapes

Labels Fixed on the Mattress

1. IS1 Sticker

2. Brand Name

3. MRP sticker

4. Quality CHEK sticker

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3) Product development

The product development carried out is concerned with the identification of

the most economically feasible method for applying the principles through

research It involves design, redesign and fabrication of new or modified product

and testing it to find its usefulness .Product development essentially involves

developing product to suit customers' needs and conditions .The purpose is to

ensure that it meets the requirement and quality standard. This is applicable to

all product modification of the existing company. -

4) Production Planning and Control

It is done on the basis of specification or orders placed by RUBCO Sales

international & based on domestic order placed by authorized distributors. The

required quantity and quality is specified through production planning and the

production is done according to this planning. Operations planning involves the

organization of an overall manufacturing operating system to produce a product.

Objective of production planning is to provide a physical system together with a

set of operating guidelines for efficient conversion of raw material, human skills

and other inputs into finished products.

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5) Lab and Quality Control Department

The adoption of quality management system should be a strategic

decision of an organization. The design and implementation of an organization's

quality management system is influenced by varying needs, particularly the

objectives the products provide to sustain and win product's acceptability in the

market. Rubco's products have found domestic and international acceptance

largely due to its stringent quality maintenance and quality control of mattress

produced Rubco's quality policy is to give enhanced satisfaction to the

customers through the manufacture and supply of rubberized coir mattress by

the use of modem manufacturing equipments .They voluntarily meet the entire

product and process related regulatory requirements and are committed to

improve their performance in all spheres of activities.

Quality objectives:

In order to implement the quality policy, the quality objectives are established

as follows.

1. Higher capacity utilization

2. Higher level of profitability

3. Lower level of rejections

4. Lower level of breakdowns

5. Least possible customer complaints

6. Higher level of customer satisfaction.

It is ensured that quality policy and objectives are understood, implemented

and maintained by all the personnel in the organization.

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6) ENGINEERING DEPARTMENT

Hierarchy of Engineering Department

Functions of Engineering department:

1. Instrumentation

2. Electrical maintenance

3. Maintenance & utility

4. Boiler unit maintenance

ELECTRICAL MAINTENANCE ENGINEER

Electricians Skilled Workers

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MARKETING DEPARTMENT

The traditional definition of marketing is the performance of business activities

that direct the flow of goods and service from producers to consumers. The

marketing concepts hold the key to achieving its organizational goals which

consists of the company being more effective than competitors in creating,

delivering and communicating consumer value to its chosen target markets.

The American Marketing Association offers the following definition

"Marketing is a process of planning and executing the conception of pricing,

promotion and distribution of ideas, goods & services to create, exchange

values that satisfy individual and organizational goal". Theodore Leavitt of

Harvard drew a perspective contrast between the selling and marketing

concepts: Selling focuses on the need of the seller: marketing focuses on the

needs of the buyer. Selling is preoccupied with the idea of satisfying the needs

of the customer by means of the of activities associated with creating, delivering

and finally consuming it. product, while marketing is the whole cluster.

MARKETING STRATEGIES

Rubco mattress has attained wide market coverage in Kerala within the

short period time of it being established. Now Kerala market is dominated by

Rubco mattress industry. The effective marketing strategy that they have

adopted is the reason behind this explosive growth of Rubco. Expansion of

existing market into other geographical areas, i.e., now Rubco is the market

leader in Kerala mattress industry and they are about to expand their market all

over South India in order to attain their target turnover. Planning for introducing

new products into market and entering untapped segments is their innovative

strategy.

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STRUCTURE OF MARKETING DEPARTMENT

MARKETING MIX

Marketing mix is the set of marketing tools that Rubco RCM Division uses to

pursue its marketing objectives in the target market. It is classified as four Ps of

marketing i.e.; product, price, place, and promotion

- Product

- Price

Marketing Department

Marketing Manager

Sales Executive

Clerical Staffs

- Place

- Promotion

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PRODUCT:

Rubco rubberized coir mattress are scientifically designed to provide proper

back support without compromising on comfort by virtue of their ingenious

design, construction and the unique 3-D technology. Rubco mattress are firm

without being hard and are extremely durable. As they do not sag, they are very

comfortable and ensure a healthy and restful sleep. Rubco rubberized coir

mattress is available in nine variants each catering to a specified user segment.

The range comprises of everything from regular mattress to special orthopedic

models and high-end luxury varieties. They come in varying sizes and

thickness, depending on the specific use they are meant for. Rubco

manufactures a wide range of mattresses catering to diverse segment.

PRICE:

Price denotes value of a product or service expressed in money. Pricing is one

of the most important activities for any organization. Pricing policy adopted by

RUBCO RCM division is Transfer Pricing. Rubco setup its price at transfer

price. Transfer price is the price at which Rubco transfers products to

distributors. A general guideline as to the total markup of 11% of the

distributor, a markup of 25% to the retailers. Price quoted is inclusive of

transportation charges. Rubco allows 2% discount on cash sale. Various

schemes and offers are announced for distributors during festival season.

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PROMOTION:

To win the battle of competition every manufacture has to choose a

number of promotion tools which can be classified as- advertising, publicity,

Personnel Selling and sales promotion.

ADVERTISEMENT AND PUBLICITY

The major purpose of advertisement and publicity is to promote

effectively through providing information to customers to make them aware

about the characteristics of the product.

The effective formulation strategies are formed by the marketing

department. the advertisement methods that Rubco RCM follows are given

below:

1. Wall paintings

2. Sales promotion schemes

3. Visual/electric media

4. Hoardings

5. Exhibitions

6. Laminated boards

7. Retailers trade

8. Turnover discount to distributors

9. Sales incentive scheme

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PLACE (DISTRIBUTION)

Rubco mattress is made available all over Kerala and Tamilnadu by its

wide distribution network. Now they are going to expand their marketing

network all over south India.

The distribution network is given below:

Exporting Activities:

As Rubco RCM division strictly follows its quality policy, the products

satisfies the expectation of the customers. Rubco receives inquiries from

SriLanka, UAE, Netherlands, Germany and other middle East countries

regarding export of rubberized coir mattress. Rubco plans to market in other

countries also.

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CHAPTER V

SWOT ANALYSIS

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SWOT ANALYSIS

The overall evaluation of company's strength, weakness, opportunities

and threats is called SWOT Analysis.

1. Rubco mattress division has lot of product varieties and price ranges.

2. In the company there does exist a cordial relationship between employees

and top level management and among dealers and distributors.

3. Through effective marketing Rubco products could have acquired wide

market acceptance & customer preference within a short period of being

established.

4. Rubco has well developed corporate strategy; this is one of their major

strength.

5. Style of leadership that the company follows is Leadership through

dedication and coordination. That encourages employees of the

organization to work towards their organizational goals.

6. The strength of the company lies with the quality of their product, wide

range of products is capable to challenge variable environment

conditions, goodwill and customer service, technical advice marketing

intelligence, wide network and interaction with customers.

7. Effective management system is one of their strength.

8. Ability of the top level management to manage strategic changes.

9. Good financial management system that is existing in the organization.

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3. WEAKNESS :

1. The company is newly established: therefore most .of the employees are

fresher’s. Therefore the company has to conduct a lot of training

programmes to make the employees suitable for the work environment:

so large volume of productive time is consumed to make them

experienced workers and to familiarize with a work procedures.

2. The weakness appearing most conspicuous to make their product

acceptable by customers is the higher prize compared to their

competitors. Rubco is going to expand their market in overall south India;

but transportation from Kerala to other markets will be a big Burden they

are facing in the market when comparing to their Competitors they can

easily supply goods into market according to Market demand because

they are having manufacturing plants in other States.

3. OPPORTUNITIES

1. The company has introduced lots of product varieties into the market

therefore customers have lot of alternatives to make their own decisions.

2. RUBCO RCM division has not yet fully tapped their 100% utilization of

existing machine capacity, so opportunities lies there. Undertake new.

3. Rubco mattress is facing high level competition in the market but their

products are having higher demand in the market, it is because of the

quality policy that they are adopting in their production process.

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4. THREATS

1. RUBCO RCM Division has very high regional and domestic Competition

from other companies like Kurl-On . Duroflex and Sunidra mattress.

2. Competition in the market is increasing day by day because of lot of

unauthorized companies in the market. They are products of low quality

at less price and attracting small customers. This is the major threat that

company is facing in the market.

3. Each and every company is facing threats in the market because

customer's requirements are changing day by day.

4. Change in the environmental factors can make influence in the sales

growth.

5. Taste of consumers are changing day by day.

6. Rising labour cost is another threat that each company faces today.

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CHAPTER VI

FINDINGS, SUGGESTIONS, CONCLUSION

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FINDINGS

1. Presence of good industrial relations with local unions and there is a

greater co-operation between management and employees.

2. Workers fear of loss of jobs and hence resist modernization of plant.

3. Wage system is fair in Rubco.

4. Workers health and safety are given prime importance.

5. Labour turnover is very low.

6. Trade union plays a vital role as bargaining agents. The management is

sometimes forced to accept unreasonable demands made by the unions.

SUGGESSIONS

Considerably within a short period of time being established Rubco

divisions has earned the reputation of being a leading manufacturer of

rubberized coir mattress by virtue of an enviable manufacturing infrastructure.

As a result of efficient monitoring and quality control at every stages of

production, wastages and rejections are brought down. Whatever be the orders,

whatever be the risk, whatever be the tasks Rubco RCM division will live up to

the expectations of the people by providing a wide range of mattress and other

rubberized coir products, catering to drive segment of the market, enforcing

strict quality measures and standards for its products. We can see Rubco as non

competent leader in the field of rubberized coir mattress in the near future itself.

Based on the study conducted, the following suggestions are made:

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In the present market Rubco Mattress is facing overall demand in the

market, in order to tap market demand. Rubco has to tap their 100%

utilization of existing machine capacity that they are not yet fully tapped.

Rubco has to adopt a strategy that would result in lowering the production

and distribution cost than that of its competitor to win the market.

The company has to make strengthen their supply chain in other states, in

order to tap the target market.

The company has to take about the conveyance facility to employees.

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CONCLUSION

The organization study has helped to make a valuable conclusion through

the analysis of different functional department of the Rubco rubberized coir

mattress division. It enjoys the confidence and support of its employees. This is

one reason that makes the Rubco rubberized coir mattress division, the most

innovative brand in the industry. Presently it is the prominent niche in the

market. It is preferably ranked at the top with consideration to quality. The core

competencies of the organization is as follows:

1. Professional management

2. Effective leadership

3. Cordial relationship between employees and top management

4. The company has well established network in industry with sound

manufacturing and marketing experience.

5. The company has adequate resources available for expansion.

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