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Organisational study

East Point College Of Higher Education 1

INDUSTRY PROFILE

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

studied the silkworm and learnt the art of unwinding the silk from the cocoon and made silk

fabric from it. This was the beginning of the 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, Tamilnadu 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 production. Future additional output is raw silk will

therefore mostly have to come from substantial productivity increases, mainly area and labor

productivity.

Currently 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 bivoltine raw silk, these

important market segments will continue to be lost outside competitors.

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The three main market segments offer great opportunity to Indias silk industry:

The broadening domestic traditional demand multi bivoltine based.

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

bivoltine rworld bank and a grant contribution aw silk.

The vast and expanding international market for raw silk, silk fabrics and ready made, 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 the 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 productivity, quality and

equity. One of the critical elements taken into consideration by the project was the dominant

involvement in the Central and State Government Organisations in the promotion of

sericulture.

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.Manufacturers or traders can use the word Mysore Silk to

market their silk fabric without KSICs nod product must be made in Mysore district penal

action for unauthorised use.Every Mysore silk saree will carry a logo- Intellectual Property

India.The two pillers 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% to 34.1%.

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KSIC is the only organisation 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

sari.

Brief on the product

KSIC is the only organization in the country commanding the entire gamut of silk production


designs, all under one roof. KSIC uses only high quality pure natural silk and 100% pure gold

sari. The sari never tarnish and will look fresh even over a long period of usage. KSIC isthe only organization to give guarantee for its sari saree in the form of embroidered code No.

which is unique to each saree.

Indian silk

Silk - the queen of all fabrics is historically one of India's most important industries. India

produces a variety of silks called Mulberry, Tasar, Muga and Eri, based on the feeding habit

of the cocoons.The sericulture industry today employs over 700,000 farm families and is mostly

concentrated in Karnataka, Tamilnadu and Andhra Pradesh and to some extent Assam and

West Bengal. Karnataka accounts for more than 70 percent of the country's total silk

production.

Sericulture is one industry which is beneficial to the agriculturists. As in today 56 lakhs

people are dependent on the sericulture industry, 5.6 million people out of which 4.7 million

are agriculturists. The rest are reelers, weavers etc.

India is the second largest producer of silk, contributing to about 18 per cent to the world

production. What is however, more noteworthy is the fact that India's requirement of raw silk

is much higher than its current production at present. Thus, there is considerable scope for

stepping up production of raw silk in the country, overcome the persistent conflict of interest

between exporters of silk products and producers of raw silk.

While sericulturists want imports of raw silk to be restricted to have better market for their

produce, exporters want imports of cheaper raw silk so as to be able to export more silk

products at competitive rates.

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India has all the four varieties of silk namely, mulberry, tassar, eri and muga. It is however,

disheartening to note that we have not yet been able to fully exploit this advantage and make

our presence felt on the international scene more prominently than at present. For this, one

has to clearly understand the strengths and weaknesses of different segments of this sector.The strength of this industry lies in its wide base, the sustaining market demand pull

especially from the Indian handloom weaving sector, the infrastructure created by the

national sericulture project and the research and training capabilities.

Mulberry segment

Its main weakness is related to a poor database, diverse range of practices leading to a

divergence in productivity and quality. Generally, there is weak accent on quality consistencyin production, poor transfer of technology to the decentralised sector both due to poor

technology absorption and poor/inadequate follow up on laboratory findings; poor market

linkages barring in Karnataka, a thriving unfair trade in the post-yarn sector, low-end

technology use and reluctance to costlier technologies due to fears that there might not be

corresponding improvement in price realisations. Other weaknesses are inadequate emphasis

on quality in the commercial seed sector, neglect of marketing linkages and the need for a

basic perspective for development of the sector which clearly defined relative roles for the

central and state agencies under the federal set-up.

Among non-mulberry silks, tassar is mostly produced by tribals by rearing silkworms on

forest plants. India is the largest producer of tassar silk after China and is the only producer of

golden muga silk. Also, India is a major producer of eri silk.

Unlike mulberry silk production, non-mulberry silk production is unsteady and fluctuates

from year to year. The central silk board has not given enough attention to their R&D and

extension activities in the area of non-mulberry sericulture in spite of its potential to directly

help the poor. Presently, muga and eri silks are produced mostly for self-consumption.

But with their uniqueness to India, they have great potential for value-added exports.The

government must give to these varieties of silk the importance that is due to them and

facilitate focussed R&D, targeted extension and innovative product development for value-

added exports.

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Tassar

It has been noted that the following are the areas of weaknesses in production of tassar and

they require to be set right Rearing is done outdoor on trees; natural food plants are dispersed

over large areas. Thus, comprehensive extension support would entail a large number of

extension agents to cater to the farmers beyond their resources.

Also weavers are normally reelers and are not exploited by traders.

Oak tassar culture has not yet been properly adopted, as people are new to this culture and

economics are yet to be established.

Also lack of disease monitoring and of control measures is noticed.

Eri

Eri silk which is largely produced in some eastern parts of the country has specific thermal

proprieties. It can also be blended with wool, other silks, cotton ramie, jute or synthetic

fibres. Areas of weakness in eri silk include:-

. Lack of systematic supply of adequate quantity of foilage.

. Lack of scientific method to check diseases

. Poor management during rearing

. Non-availability of separate rearing house and

. Absence of any well-organised marketing system

Muga

This golden yellow silk is quite unique to Assam and neighbouring areas of Nagaland and

Meghalaya. It has spread to West Bengal and Andhra Pradesh as well. While basic seed

production is more or less organised, commercial seed production is to be organised

systematically. More research support is needed for this activity.

There is Cut throat competition from China.Sericulture in India has taken a severe beating

with cheap silk coming from China and flooding the Indian markets.India had imported around 9,258 tonnes of silk worth over six billion rupees last year from

China, the world's largest silk producer.

Nearly 49,000 hectares of mulberry crop was uprooted in Karnataka as cocoon prices crashed

resulting in a loss of 3,000 tonnes to the country's overall silk production, according to

statistics released by the Central Silk Board.

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Dumping of silk yarn from China has affected the production of silk because the rate of

cocoons in the market has come down because the demand has been reduced due to import of

China silk. So farmers who were expecting a better income for their cocoons stopped because

market was fluctuating. When the imported silk came in, dealers lost their interest in buyingthe cocoons and farmers did not get the better rates. This has resulted in 49,000 hectares of

mulberries being uprooted in Karnataka. In turn the farmers have taken up other activities,

other agricultural productions rather than continuing with mulberry.

According to the farmers, their crops also suffered from the third consecutive drought last

year. Farmers are demanding that the government should impose anti-dumping duties on

Chinese silk.

India stands second only to China in silk production. While China produced 69,000 metric

tons of raw silk last year, India stood far behind with 16,000 metric tons.

Officials say India requires 120,000 metric tons of silk to meet the demand in world market

and with better infrastructure facility; the sericulture industry could improve its productivity

to 15 percent as against the current nine percent.

The bulk of Indian silk thread and silk cloth is consumed domestically. The present market

context for silk in the country is one of vigorously growing internal demand for silk fabrics,

with growth rates of above 10 percent per year.

With substantial government and international subsidies for silk projects and marketing

schemes, the industry has been expanding rapidly over the last few years. Silk exports too are

growing rapidly. Germany is the largest consumer of Indian silk.

Today only China and India are the producers in silk. Thailand, Uzbekistan also produces silk

but the quantity is very small. So we will have to keep this raw silk and fabrics for them to

continue in the market. Only two countries can do it. India is the largest consumer of silk

fabrics by way of sarees and so many other things. So we will have to improve our silk

culture.

Today the Indian silk industry is already a major player in the global scenario and the growth

prospects for the industry seem to be bullish. Measures like the encouragement of further

technological and economic research in the various aspects of sericulture, standardization and

quality control of silk and silk products and rationalization of marketing and stabilization of

prices of silk cocoons and raw silk it could expand rapidly than ever before.

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COMPANY PROFILE

KARNATAKA SILK INDUSTRY CORPORATION LIMITED

Address:

Karnataka Silk Industries Corporation

Public Utility Building,

III & IV Floor,

Mahatma Gandhi Road,

Bengaluru - 560 001,

INDIA.

BACKGROUND & INCEPTION OF THE COMPANY

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 &

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.

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 & expansion assisted by the World Bank to the tune of

Rs. 27.30 crores integrated under Karnataka sericulture project.

Memorable milestones of KSIC ltd

1932: Mysore silk weaving factory was established.

1980: Silk weaving was taken over by KSIC Ltd.

1982: KSIC Celebrated its golden jubilee year.

1983-84: Imported machines were brought that is weaving loom, 2 Warping machines

and pirn winding machines.

1985-86: A modern processing unit with imported machines was commissioned.1996: A rehabilitation package was worked with IDBI.

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1997: Government of Karnataka and IDBI approved a Rehabilitation package.

2000-01: The unit introduced may new designs and varieties.

2001-02: it introduced new range of fabrics viz, Meenakari Sarees, Rich Pallu sarees

and kathan border sarees,which are in good demand in market.2004-05: Solar water heater heating system was installed.

2006-07: Effluent treatment plant has been installed.

Nature of business carried

KSIC is the only organization in the country commanding the entire gamut of silk production

right from reeling of cocoons to the weaving of pure silk fabric of various shades anddesigns, all under one roof. KSIC uses only high quality pure natural silk and 100% pure gold

sari. The sari never tarnish and will look fresh even over a long period of usage. KSIC is

the only organization to give guarantee for its sari saree in the form of embroidered code No.


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

there reflect the traditional splendour 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 sari.

They 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,

kurtas, silk dhoti and mens tie. The silk products are manufactured in our factory located in

Mysore district of Karnataka state.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.

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VISION, MISSION, AND QUALITY POLICY

VISION

To provide employment directly and indirectly by producing goods, products & marketing

effectively in the market.

MISSION

Manufacturing and marketing of Mysore silk sarees.

QUALITY POLICY : ISO9001-2000 QMS Quality policy

Quality is one of the core principles of KSIC LTD. Market leadership demand Excellence

each time and every time. They have risen to the status of industry leaders due to the high

quality of their products. With well-equipped infrastructure, modern production techniques &

highly skilled manpower; they ensure that their products are created in an environment that

breeds excellence. With well established laboratories, they are able to carry out routine

checks on everything from raw materials to finished products to ensure that all products are

in compliance with their high standards.

KSIC is committed to meet customer requirement of safe and quality food product by

adopting continual improvement of product, process, safety and hygiene by adhering to all

the legal and feed safety management system.

1.The MD & all the senior managers of the company are committed to ensuring that system

is effective in maintaining quality with this end in view they strive to continually improve

upon their products, processes and quality management system. We will be measured against

and reported upon.

2. These objectives include

a. Ensuring customer satisfaction through improved product and delivery performance and

effective complaints handling.

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b. Improving existing techniques, system, procedure, products & services and bring about

innovations to meet the changing needs of the customers.

c. Optimum utilization of the available human resources by uplifting their skills and morale.

d. Promote error prevention practices through involvement of employees.e. Improving the effectiveness of production processes to reduce waste, rejection

reprocessing.

Future growth and prospects

Mysore silk has been established as a major brand and it now commands great respect and

patronage among the silk wearing population of customers. Therefore there is greater

responsibility on KSIC not only to maintain the quality standards but also there is need forsustained efforts to imbibe improvements in print and design for greater customer

preference.

A continuous effort to create awareness among the new generation prospective customers

about the intrinsic quality of Mysore silk is necessary to attract new customers.

On line shopping facility targeting primarily NRI customers for improvement in sales.

The company is intending to carry out aggressive advertisements like exhibitions, print and

electronic media.

Ownership pattern

KSIC ownership is based upon Share capital of public and Government. The silk weaving

factory in Mysore, presently owned by KSIC, was established in the year 1912 by the

Maharaja of Mysore province. The unit was started with 10 looms.

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

Ltd., a Government. of Karnataka enterprise and is popularly known as KSIC. The takeover

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.

Presently the company is having 58,00,47,000 capital amount. 55% from the government

contribution and 45% collected through by issuing shares.

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Board of Directors

Sl.

No.Name Designation Tel. No.

1 Sri. G.Ramachandra, IASManaging Director,

KSIC. Govt. of Karnataka.25586399 (O)

2 Sri Vipul Bansal,IASDy. Secretary to Govt.( Budget and

Resources) Finance Dept.22258973 (O)

3 Smt. M. Sathiyavathy, IAS

Member Secretary,

Central Silk Board.

Govt. of Karnataka.

26680190 (O)

4 Sri Paramesh Pandey, IAS

Managing Director,

Karnataka Silk Marketing Board.

Govt. of Karnataka.

22235168 (O)

5 Sri. D.A. Venkatesh, IFS

Commissioner for Textiles and

Director for Handlooms & Textiles.

Govt. of Karnataka.

22271628 (O)

6 Dr. N.Nagambika Devi, IAS

Commissioner for Sericulture

Development and Director for

Sericulture.

Govt. of Karnataka.

22353933 (O)

7 Sri. B.S. Ramaprasad, IAS

Secretary to Govt.,

Commerce & Industries Dept.

Govt. of Karnataka.

22353933 (O)

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PRODUCTS OF KSIC:

Saree- sari bordered printed silk embroidery saree.

Dupatta.

Silk jacket.

Cushion covers.

Silk shirt.

Scarves.

Handkerchief.

Kurta pyzama.

Dress material.

Blouse material.

Ties.

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TOP SAREE PRODUCT DESIGNS AND SERVICES

crepe pallu sari stripes crepe pallu sari stripes

body plain body small checks

Crepe Crepe

crepe pallu sari stripes crepe tissue pallu sari

Body butta stripes body tissue

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Georgette tissue pallu sari crepe rich pallu stripes

Stripes body tissue body lines

Crepe pallu sari printed body print allover

Crepe pallu sari stripes body lines

-

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Crepe pallu sari butta bar stripes body lines

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CUSION COVERS

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SALWAR KAMEEZ

KURTHA

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CURTAINS

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COMPETETORS INFORMATION

KSIC is only organization in the country commanding entire silk production right from the

reeling of the cocoons to the weaving of pure silk fabric of various shade and design all under

one room. KSIC uses only higher quality pure natural silk and 100% pure gold sari. The sari

never tarnish and will look fresh even along period of usage. KSIC is only organization to

give guarantee for its sari saree in form of embroidered code no, this is unique to each saree

COMPETITORS for KSIC

Kanchipuram silk sarees

Banarasi silk sarees

Designer silk sarees

Dharmavaram silk sarees

Pochampally silk sarees

Uppada silk sarees

Arani silk sarees

Gadwal silk sarees

Kora silk sarees

Website: www.ksicsilk.com

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ORGANISATION STRUCTURE

INTRODUCTION

Organization is structural relationship between the factors in an enterprise. It involves the

determination of duties and their assignments among the various personnel of the enterprise

and co-ordination and combining all such activities for achieving the enterprise objectives.

There are several functional departments in KSIC limited which are handling various

operations are shown below.

Marketing Department

Finance Department

Production Department

Quality control Department

Purchase Department

Research and developement Department

Materials department.

Security department.

storage department.

Workers participation in the management

In KSIC workers participation in the management is very active. Suggestion are Invited,

Analysis and if found worthy are duly implemented by the management . Workers are

encouraged by the management to participate in the working channel planning. This also

initiates the workers interest in the working environment.

Functions of personnel manager

1. Discipline maintenance.

2. Grievances Handling.

3. Communication Network in the organization

5. Employee Safety and Industrial Health.

6. Co-ordination between workers management, government and outside agencies.

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ORGANISATION CHART

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Infrastructural facilities

KSIC has its head office at Bangalore. 3rd and 4th floor , public utility building, mahatma

Gandhi road, Bangalore-560001, india.

Production plants

KSIC has two modern factories engaged in manufacturing silk goods right from raw silk

yarn to silk fabrics. The factories are located in T. Narasipura & Mysore both in the state of

Karnataka, INDIA.

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.

Mysore - Silk weaving & Printing silk products

The raw silk yarn Filatures obtained from T . Narasipura factory are put through various

process and Quality silk products are produced for end user consumption.

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 a 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.

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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. KSIC silkproduct are well appreciated in the market due to its 100% pure silk blended with 100% pure

gold Sari( 65% of silver & 0.65% of Gold ).

Achievements/awards

Its 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 brand name for its exclusive use.

Henceforth, all Mysore Silk Sarees are 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 base in Chennai). KSIC are also having the patent rights of Mysore Silk brand and no other organization can

use the same name for other silk products.

Business today has awarded the best managed company in the recognition of its

outstanding initiatives in the women consumer products.

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ANALYSIS OF FINANCIAL STATEMENT

BALANCE SHEET AS AT july 31, 2011 and 2010

Schedules 2011(Rs) 2010(Rs)

SOURCES OF FUNDS

Shareholders funds

Share capitalLoan funds

Unsecured loans

APPLICATON OF FUNDS

Fixed assets:

Gross Block

Less: Depreciation

Net block

Capital work-in-progress

Investments

Current Assets, loans &

Advances:

Inventories

Sundry Debtors

Cash and Bank

Balances

1

2

3

4

5

6

7

8

9

58,00,47,000

69,46,174

58,00,47,000

6,01,39,259

58,69,93,174 64,01,86,259

29,83,87,584

24,49,54,483

28,21,71,741

24,15,79,359

5,34,33101

-

4,05,92,382

62,49,494

5,34,33,101 4,68,41,876

13,00,16,683

3,75,82,894

11,79,30,849

29,51,268

10,34,57,618

3,69,68,171

8,35,47,575

25,09,974

7,85,88,486

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Other current Assets

Loans and advances

Less: Current liabilities and

provisions

Current liabilities

Provisions

Net current Assets

Profit and loss

account

10

1,59, 02,826

30,43,84,520

30,50,71,824

5,98,73,190

10,59,22,193

6,51,81,258

8,92,80,165

16,57,95,383 15,44,61,423

13,85,89,137

39,49,57,836

15,06,10,401

44,27,20,882

58,69,93,174 64,01,86,259

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Less: Provision for Fringe Benefit

Tax

Net profit/(Loss) after TaxAccumulated Loss Brought

forward

Profit/(Loss) carried forward to

Balance Sheet

4,77,63,046

(44,27,20,882)

4,80,72,916

(49,07,93,798)

(39,49,57,836) (44,27,20,882)

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Comparative Balance sheet for the year ending 31st

July 2011 and 2010 :

2010 2011 Increase/

Decrease

(amounts)

Increase/

Decrease

(Percentage)

ASSETS

1.Fixed Assets

2. current assets

Inventories

Sundry debtors

Cash and bank balance

Loan and advances

Other current assets

3. Liabilities and capital

Current liabilities andprovisions

Share capital

Unsecured loans

4,05,92,388

10,34,57,618

3,69,68,171

8,35,45,575

7,85,88,486

25,09,974

30,50,71,824

58,00,47,000

6,01,39,259

5,34,33,101

13,00,16,683

3,75,82,894

11,79,30,849

1,59,02,826

29,51,268

30,43,84,520

58,00,47,000

69,46,174

+1,28,40,719

+2,65,59,045

+6,14,723

+3,43,83,274

-6,26,85,660

+4,41,294

-6,87,304

-

-5,31,93,085

31.63

25.67

1.66

41.15

79.00

17.58

0.23

-88.45

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Products/service profile

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


designs, all under one roof. KSIC Uses only high quality pure natural silk and 100% pure

gold sari. The sari never tarnish and will look fresh even over a long period of usage. KSIC is



Products of KSIC

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


designs, all under one roof. KSIC Uses only high quality pure natural silk and 100% pure

gold sari. The sari never tarnish and will look fresh even over a long period of usage. KSIC is



Top saree product designs and services

Crepe pallu sari stripes body plain

Crepe pallu sari stripes body small checks

Crepe pallu sari stripes body butta

Crepe tissue pallu sari stripes body tissue

Georgette tissue pallu sari Stripes body tissue

Crepe rich pallu stripes body lines

Crepe pallu sari printed body print allover

Crepe pallu sari stripes body lines

Crepe pallu sari butta bar stripes body lines

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Area of operation-global/national/regional

The area of Operation of KSIC has been established as follows: -

Corporate Office: - Bangalore.

Manufacturing units: - Mysore and T.Narsipura

Marketing centers: - Bangalore and Mysore.

Tips for Maintaining & Handling of Silk.

The customers who have purchased silk fabrics and sarees from KSIC are requested to take

precautions and handle the silk as per the following instructions to maintain its luster and

look.

Never keep silks in plastic bags. They tend to trap moisture and spoil the silk and Sari.

Always warp them in clean, soft cloth. Avoid wool and paper.

Silk should best be dry-cleaned. At home they can be washed with soft detergents. Soap

nut boiled in water, yielding a soft lather is best for silks.

For ironing to be given for dry-cleaners for steam-ironing. Never press the saree with a

hot iron directly. Keep a thin , white linen cloth on top while ironing.

For protection against cockroaches and other insects use any mild repellent, instead of

naphthalene balls.

Expose your Sari sarees to the sun once in a while {twice in a year}

Change the folds of the saree frequently to avoid tell-take marks. It can gather dust and

even tear, if kept in one fold constantly.

Protect the sarees against dampness and moisture. But if stained, rub a soft damp cloth on

the satin gently and dry immediately

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Departmental study

Detailed study of various functional departments

1. Finance department.

2. Marketing department.

3. Production department

4. Purchase and Sales department.

5. Human resource department.

Finance department

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

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

The finance function deals with the procurement of money at the time when it is needed and

its effective utilization in the enterprise.

If affects all the business decisions where money is involved, since the large commercial and

industrial undertaking are set up in the form of companies, the problems of finance for

modern business is for all practical purposes of the problem of corporate finance all the

important financial decisions are taken by the board of decisions of directors of company.Finance department at KSIC LTD is handled by finance manager and under him accountant,

junior superintendent and cashier will function.

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 tooliterally 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.

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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

MysoreKingdom 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.

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 ).

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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 delicatestrands 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.

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.

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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 /dayActual 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 -

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

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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) AutomaticJapanese Machinery

ii) Semi-AutomaticKorean 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

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DEPARMENTAL CHART

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Functions of finance department at KSIC ltd

1. Finalization of accounts

2. Preparation of wage sheets

3. Budget making and set target to be achieved

1. Set out the financial requirements, loans, income expenditure etc.

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MARKETING DEPARTMENT

Aim of marketing

To know and understand the customer so well that the product or service first him and sells

itself. Ideally marketing should result in customer who is ready to buy. All that should be

needed then in to make the product or service available.

Commercial Department

Senior assistant (sales) Sales executive

Steno, typist Sales staff

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KSIC SHOWROOMS

To sell the silk fabric products, KSIC has its own showrooms at various places

as listed below. This is to ensure that only the best and original silks frabics are

sold. It as no dealers or any outlets other than its own showrooms manned by

KSIC staff.

Bangalore

Chennai

Mysore

Hyderabad

Kerala

Marketing Mix of KSIC

4 Ps of Marketing

1.Products of KSIC:

Saree- sari bordered printed silk embroidery saree.

Dupatta.

Silk jacket.

Cushion covers.

Silk shirt.

Handkerchief.

Kurta pyzama.

Dress material.

Blouse material.

Ties.

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2.Price of the saree

Price is a basic and critical factor; that is considered for the return on capital and 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.

Starting from Rs 6,000 to Rs2,00,000.

3.Promotion activities:

Advertisement

Exhibition mela.

Institutional sales (BEL, BHEL, HAL, BSNL).

Discount (From 5% to 35%).

4.Places:

Showrooms

4 in Mysore

5 in Bangalore

1 in Madras

1 in Hyderabad

Purchase and sales department

In ordinary sense the term purchasing is the procurement of materials, 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

vale of materials so as to facilitate the standardization and competitive marketability of the

product.

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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.

Methods 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 be done 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

In KSIC, two types of suppliers are found.

Manufacturing suppliers and

Distributors and commission agents.

Quality Control

The company has been set up a quality control 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 quality

control ensures the consistent quality products.

Objectives of Quality control

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Continuous improvement in operation

Improvement in export turnover

Consumer satisfaction

Functions of Quality control

Quality inspection

Quality of silk and fabrics are checked during various stages of productions such as

dyeing, weaving, stenciling etc with the quality of the product is beyond the standard

prescribed then is rejected.

Product development

This function includes the development of original products, modification etc. These

function are done in accordance with the tasty and preference of customers.

Designing

Designing of silk products are done by both designers of international reputes and

national reputes. They create new concepts and trends in the area of weaving colour

combinations.

Findings

Lack of direct feedback

Improper client relationship

Lack of new learnig

Less unique experience

Control over resources

Lack scheduling of work

The person selected as a superviser may not be qualified and this may lead to poor

supervision

Changes in technology

Misunderstanding between workers and managers

Lack of raw material supply

Direct feedback

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Client relationship

Lack of communication skills

Slow growth of the organization

Large number of workers

Human resource department in KSIC ltd

Human Resource Department in KSIC Ltd. is a very important and clearly defined

department. The department performs the Human Resource and administrative functions. It

has a direct link with the employees and understands their needs and wants. The Human

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

Assistant, Steno Receptionist, Driver, Peon etc.

Recruitment

The sources of recruitment are

Direct recruitment

Public service commission

Employment exchange

Analysis and interpretation

The comparative balance sheet reveals that during 2011 there has been an increase in fixed

assets of Rs 1,28,40,709 that is 31.63 %. This fact depicts that the policy of the company is

to purchase fixed assets in the year 2011.

The inventories of the company increases during the year 2011 Rs 2,65,59,045 that is

25.67%. The increases in inventories reveals that accumulation of stocks. An increase in

inventory may increase working capital of the business. So it will not be good for the

business.

Sundry debtors have increased from 3,69,68,171 to 3,75,82,894. It shows the credit sales

also increasing during the year 2011.

Cash and bank balances of the company increased from 8,35,45,575 to 11,79,30,849 that is

41.15% . This shows liquidity positions is good.

The current liabilities and provisions of the company have decrease Rs 6,87,304 that is

0.23%. It shows that the company repay the creditors amount in the year 2011.

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The sales of the company increasing in the year of 2011-10 Rs 4,88,17,733. Due to

increase demand for its product.

Gross profit of the company also increasing during the year 2011-10 of Rs 54,27,468 that

is 11.38%. Because of increasing in Sales turnover.

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SWOT ANALYSIS

STRENGTHS

KSIC is the only organization to give guarantee for its sari saree in the form of embroiders

code number which is unique to each saree.

KSIC uses only high quality pure silk and 100% pure gold sari..

Good profit margin even at reduced price levels.

KSIC having Brand name of Mysore silk with GIR registration.

KSIC have a patent right of Mysore silk brand.

WEAKNESS

This unit does not have a separate research and development department.

The number of outlets is less.

Lack of advertisement in specifying the products information to the potential

customers.

Decrease in Man power due to shutting of units in kanakapura and channapatana.

There is lack of skilled labour in KSIC Ltd.

Other silk products are sold in the name of Mysore silks.

OPPORTUNITIES

Expansion in market by increasing the number of outlets.

Increase in demand for its production in foreign countries.

Leveraging technology to service customer quickly efficiently and conveniently.

Due to Globalization and economic policies great opportunities are opened up so the

company should grabe the opportunity both in National and International level.

Providing employment opportunity for rural people.

Giving apprenticeship training for workers.

THREATS

Increase in competition due to globalization of product.

Availability of different varieties of silk is a threat to the companys product.

Shifting of the consumer interest from silk to other fabrics like cotton, nylon, etc.

Competition from private traders selling fake mysore silk fabric.

KSIC found that more than 45 dealers in Bangalore were misusing the name of Mysore

silk.

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FINDINGS

Lack of direct feed back

Improper client relationship

Lack new learning

Less unique experience

Control over resources

The person selected as a supervisor may not be qualified

and this may lead to poor supervision

Changes in technology

Misunderstanding between the workers and managers

Lack of raw material supply

Direct feedback

Client relationship

Lack of communication skills

Slow growth of the organization

Large number of workers

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SUGGESTIONS

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.

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

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CONCLUSION

An organisation study was conducted in office and factory of KSIC LTD, Bangalore, which

lasted for duration of 4 weeks. The executives were highly co-operative in sharing the various

functions of the concerned departments. Primary data was collected through question and

answer.

sessions and secondary data was collected by referring to various journals, magazines and

website of the company.

This organisation study helped me to relate theoretical knowledge with the practical scenario

in the organisation. The ethical values and focus on customer satisfaction of KSIC LTD was

highly impressive. The salary package paid to the employees is less when compare to any

other companies. It manufactures only sarees and silk products. The company should provide

offers and discounts to attract customers. So this project gives enough information about the

company.

The following conclusions have been made by organizational study.

Among the various products of KSIC, buyers prefer Sarees than that of other products like

ties and shawls.

The relationship of KSIC with customers is excellent and also the span of business is for

more than a decade.

Amongst the various promotional strategies opted by KSIC to market the products, most

preferred promotional strategy is discounts.

The sale of KSIC products is high during marriage occasions than that of festivals.

KSIC has lot of concern towards the customer regarding replacement of damaged goods.

Banners are the most popular mode of creating awareness of KSIC products among

buyers.

Televisions ads are the most popular means of media communications of KSIC products.

To maximum extent the customers feel the pricing strategy of KSIC product is nominal.

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BIBLOGRAPHY

BOOKS :-

KSIC company brochures.

Marketing management by Phillip Kotler.

Consumer Behavior by Leon schiffman.

Shashi. K. Gupta, Business Research Method, Kalyani Publication.

Kothari.C.R, RESEARCH METHODOLOGY methods and techniques, second

edition, wishwa prakashan(reprint 2002)

WEBSITES:-

www.google.com

www.silkindustry.com

www.economictimes.com

www.clothing.com
http://www.silkindustry.com/http://www.economictimes.com/http://www.economictimes.com/http://www.silkindustry.com/

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Annexures

BALANCE SHEET AS AT july 31, 2011 and 2010


SOURCES OF FUNDS

Shareholders funds

Share capital

Loan funds

Unsecured loans

APPLICATON OF FUNDS

Fixed assets:

Gross Block

Less: Depreciation

Net block

Capital work-in-progress

Investments

Current Assets, loans &

Advances:

Inventories

Sundry Debtors

Cash and Bank

Balances

Other current Assets

1

2

3

4

5

6

7

8

9

58,00,47,000

69,46,174

58,00,47,000

6,01,39,259

58,69,93,174 64,01,86,259

29,83,87,584

24,49,54,483

28,21,71,741

24,15,79,359

5,34,33101

-

4,05,92,382

62,49,494

5,34,33,101 4,68,41,876

13,00,16,683

3,75,82,894

11,79,30,849

29,51,268

1,59, 02,826

10,34,57,618

3,69,68,171

8,35,47,575

25,09,974

7,85,88,486

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Loans and advances

Less: Current liabilities and

provisions

Current liabilities

Provisions

Net current Assets

Profit and loss

account

1030,43,84,520

30,50,71,824

5,98,73,190

10,59,22,193

6,51,81,258

8,92,80,165

16,57,95,383 15,44,61,423

13,85,89,137

39,49,57,836

15,06,10,401

44,27,20,882

58,69,93,174 64,01,86,259

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PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED july 31, 2011 and 2010


INCOME

Sales

Other Income

EXPENDITURE

Material consumed

Operating Expenses

Interest

Loss on revaluation of assets

Depreciation

Profit/(Loss) for the year

before non-recurring item

Prior period Income/(Expenditure)

(Net)

11

12

13

14

15

45,73,61,969

1,08,52,829

40,85,44,236

56,30,321

46,82,14,798 41,41,74,557

14,59,85,560

25,51,14,503

99,93,466

5,73,568

34,20,457

14,16,96,819

22,21,62,180

30,892

-

25,84,890

41,50,87,554 36,64,74,781

5,31,27,244

(45,74,519)

4,76,99,776

10,68,000

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Profit/ (Loss) for the year before

Tax

Less: Provision for Fringe Benefit

Tax

Net profit/(Loss) after Tax

Accumulated Loss Brought

forward

Profit/(Loss) carried forward to

Balance Sheet

4,85,52,725

7,89,679

4,87,67,776

6,94,860

4,77,63,046

(44,27,20,882)

4,80,72,916

(49,07,93,798)

(39,49,57,836) (44,27,20,882)

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Comparative Balance sheet for the year ending 31st July 2011 and 2010 :

2010 2011 Increase/

Decrease

(amounts)

Increase/

Decrease

(Percentage)

ASSETS

1.Fixed Assets

2. current assets

Inventories

Sundry debtors

Cash and bank balance

Loan and advances

Other current assets

3. Liabilities and capital

Current liabilities and

provisions

Share capital

Unsecured loans

4,05,92,388

10,34,57,618

3,69,68,171

8,35,45,575

7,85,88,486

25,09,974

30,50,71,824

58,00,47,000

6,01,39,259

5,34,33,101

13,00,16,683

3,75,82,894

11,79,30,849

1,59,02,826

29,51,268

30,43,84,520

58,00,47,000

69,46,174

+1,28,40,719

+2,65,59,045

+6,14,723

+3,43,83,274

-6,26,85,660

+4,41,294

-6,87,304

-

-5,31,93,085

31.63

25.67

1.66

41.15

79.00

17.58

0.23

-88.45

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Documents

Majun Prep