A REPORT ON ORGANIZATIONAL STUDY AT RUBCO RCM DIVISION by Sanjay Gupta

A REPORT ON ORGANIZATIONAL STUDY AT RUBCO RCM DIVISION PAMPADY, KOTTAYAM KERALA,

Submitted to BANGALORE UNIVERSITY In Partial fulfillment of the requirement for the requirement of the Award for the degree of MASTER OF BUSINESS ADMINISTRATION BY Mr.ARAVIND.K.ASOK Reg no:09HDCMA007

Under the guidance of Prof.B.DHARMARAJ HEAD OF THE DEPARTMENT OF MBA ADVANCED MANAGEMENT COLLEGE BANGALORE

ACKNOWLEDGEMENT

The study will not be complete without acknowledging my sincere gratitude to all persons who have helped me in the preparation of this dissertation. I express my sincere thanks to God Almighty for giving the strength and presence of mind to complete the work successfully. I am extremely indebted to management of Rubco coir mattress, Pampady., Mr. A. Mohanakrishnan , The General Manager, Kottayam Division And Mr. Arun Vishwambharan, Administrative Cum Personal Manager, who gave me the privilege to carry out my project in their distinguished institution. Let me take this opportunity to thank all the employees of Rubco Coir Matters for their help and their co-operation. My sincere thanks to Prof. B.DHARMARAJ (HOD, MBA) under whose supervision this study has been completed. I use this opportunity to express my thanks to Prof. Dr.G.S ANADAN. Principal of ADMC BANGALORE, and my Guide Prof.B.DHARMARAJ ,HOD OF dept of MBA And I also express my sincere thanks to my parents and classmates for their help.

Executive Summary

The rubberized coir mattress industry has a great market in India. There are number of mattress manufactures in the market who are struggling hard to make an impact in the mind of customers. Both branded and unbranded mattresses are in the market, unbranded ones are concentrated on the local market. They are mainly giving attention to provide customized product, who cannot afford to buy branded mattress at comparatively high price. At present, mattress market has became one of the most competitive markets in India, which spend huge amounts of money for advertisement and other promotional act

INTRODUCTION 1.1 INTRODUCTION In countries like India, rubber is one of the main agricultural and commercial products. About 90% of the natural rubber is produced in Kerala. So rubber has become the backbone of our economy. Due to the bad impact of globalization the overall market of rubber fall down in Kerala, that time instability in price of rubber was one of the major problem that farmers facing in the market. The farmers were not getting fair price for their effort, but this problem has come to an end since 1997, because the Kerala state rubber co-operative limited came into existence in this year on the purpose of exporting the infinite possibilities of rubber.

In literally means that Kerala state rubber co-operative limited (RUBCO) will become the back bone of the rubber cultivator. Kerala state rubber co-operative Ltd, popularly known as RUBCO is an Rs 280 crores group with a strong presence in the rubber based industrial segment. RUBCO is incepted with prime objective of effectively utilizing the abundant rubber resource of Kerala. In a short span, RUBCO has successfully introduced a wide range of fast moving rubber based product. Today the RUBCO group has interest in rubber footwear, casual shoes, cycle tyre and tubes, two and three wheeler tyre, rubberized coir mattress process and rubber wood furniture, block rubber (ISNR) and pale latex crepe, apart from natural rubber trading. 1.2. SCOPE OF THE STUDY

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 are put into the real life situations. A study on all the departments can help to improve the process and there by an over all improvements in the companyâ&#x20AC;&#x2122;s performance can be made 1.3. OBJECTIVE OF THE STUDY

The organization study was done on behalf of the fulfillment of MBA,degree. The organization study was conducted for the following purposes: To have an understanding of the profile of Rubco Mattress Division and its various activities. To acquire knowledge regarding the functional as well as the managerial aspects of the company. To find out problems if any and to put forward suggestions. To get an idea of the organization and itâ&#x20AC;&#x2122;s various departments. To get familiarize with various activities of the company. To get the feel of actual working environment and to get acquainted with it. 4

To learn and enrich by observations and by implementation of my knowledge. To learn and maintain a good relationship with the organization.

1.4. 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. . It has 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.

1.5. DURATION OF THE STUDY (STUDY PLAN) The organizational study in RUBCO RCM Ltd was conducted from 1st July to 30 July 2010. So a study plan has to be prepared for the successful completion of the study. The schedule for the study was: 1st week (1st July to 2010 to 5th July 2010): On the first day of the study I meet Administration cum personnel officer Mr.Arun Viswabharan, who was appointed to be my assistant for Organizational Study. He gave brief details of the department and its function, future plans, clear-cut image of the organization. 2nd week (7th July2010 to 12th July2010) Information was collected from finance department and analyzed the financial performance of the company. Finance Manager assisted me by providing various financial details. 3rd week (14th July2010 to19 th July2010) the details were collected from marketing department. The companies marketing strategies are very modern comparing with other companies which made it as one of the leading companies in south India and has hundreds of branch in Kerala and also outside Kerala. 4th week (21st July 2010 to 26th July 2010) Information’s were collected from the production department regarding the Raw Materials, Production process, Packing..Etc. 5th week (28th July2010 to 30th July 2010) as this was the last week of my Organizational Study I’ve visited personnel department and I met few of the employees in the company and asked about the company’s employ welfare activities.

1.6 METHODOLOGY OF STUDY Primary Data Having formal and informal interview and discussions with managers and officials at various levels. Personal visit to plant.

Secondary data Data collected from published and unpublished sources Official records. Organizational manuals Department manual

1.7. LIMITATIONS OF THE STUDY

The Major Limitations are:-

Time limit To understand an organization and its working the period of one month is not at all enough. So time was the most important limiting factor in the study.

Lack of data Some of the data are treated as confidential and hence the researcher could not get the details of the same.

Lack of comparative data The detailed data of other companies related to the same business was not available to take comparative study.

PROFILES

INDUSTRY PROFILE

2.1. 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 manufacturers, 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, there was dearth of this raw material. This necessitated a suitable alternative product for rubberization and which would suit to their specifications. Of various alternatives 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 four 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. 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 â&#x20AC;&#x153;wealth from wasteâ&#x20AC;? and advocated the use of rubberized coir mattresses in various hospitals, health clinics etc. through issue of Government circulars.

Other types of mattresses 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 8

Form mattress segment comes at next place after rubberized coir mattress industry. This industry is having a market share of 9 to 10 % this industry mainly target customer belonging to upper income and upper middle income group. The major players in form industry are MM form, sleep well.

SPRING MATTRESS The industry targets 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 manufacturers, during early 60s this product got some market recognition in early 70s. In the next 3 decades over one hundred manufacturers 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, electronics 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.

WORLD SCENARIO There are mainly three major players in the mattress industry and are as follows:1. Sealy Corporation

Sealy Corporation is the major mattress manufacturer and it got the name from the place it started, Sealy, Texas. 2. King Koil

Founded in1988, King Koil has over a century of experience crafting high-quality, affordable bedding both in United States and through out the world. 3. Simmons Bedding Company

Simmons Bedding Company is a major manufacturer of mattresses and is one of the oldest companies in the United States, for over 125 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 1.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. 9

10 2.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. 3.Century Mattress

Century Fiber Plates pvt. Ltd. Started its rubberized coir plant at Hyderabad in 1988 under the brand name “CENTUARY”. Centaury 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 backwaters for 10 to 12 months. The main players in rubberized coir mattress industry are: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. Eastern Sunidra

Eastern Mattresses Pvt Ltd. is a part of Kerala’s renowned business conglomerate the Eastern Group Of Companies. 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. The Indian coir industry has a diversified structure, reflective of the broad range 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 millers with usually less than 10 employees and an estimated 500 suppliers 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. 10

COMPANY PROFILE

2.2 COMPANY PROFILE ABOUT RUBCO

Kerala State Rubber Co-operative LTD (RUBCO) was set up in the year 1997, with the objective of effectively utilizing the rubber resources in Kerala. RUBCO has in short span, redefined the way the cooperative movement in Kerala. Today, from a single unit company â&#x20AC;&#x2DC;RUBCOâ&#x20AC;&#x2122; has grown into Rs280 crores conglomerates with well-diversified operation and a market presence extending beyond boundaries of Kerala. 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 in Kerala that time instability in price of rubber, was one of the major problem that farmers facing in the market .The farmers were not getting fair price for their effort, But this problem has came to a end since 1997,because The Kerala Rubber CO-Operative limited (RUBCO) came into existence in this year on the purpose 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 Hawaii Chappell with reputed Malaysian Technology, Cycle Tires and Tubes, Rubberized coir mattress, conventional and procured tread rubber, Block Rubber (SMR), Pale Latex Crepe (PLC), casual shoes etc. For last half decade with a vision to become a global leader in the production of Natural Rubber and innovative product development, RUBCO adopts the best and latest process in the production. n their slogan itself they had mention that:

"RUBCO means RUBBER and RUBBER means RUBCO"

Today, from a single unit company, RUBCO has grown into an Rs 280 Crores Conglomerate with well diversified operations. . Divisions operating under RUBCO Group are involved in a wide range of Business such as: Footwear Furniture (Rubber wood) Cycle Tyre and Tube Rubberized Coir Mattress Natural Rubber Virgin coconut oil

Projects in Pipeline RUCO Hawai Chappal Unit introduces three more models

NEW PROJECTS FOR COCONUT BASED PRODUCTS

Virgin Coconut Oil Activated Carbon Coconut Spray Dried Milk Powder Packed Tender Coconut Water Coconut Water Concentrate

Plant for casual/sports shoe on progress Unit for automotive Rubber Components to be established Rubco is in the process of setting up a project for the manufacture of tyres and tubes for two/three wheelers, passenger cars, Heavy Duty Trucks and LightCommercialVehicles. The project will be located in the proposed Industrial Growth Centre being developed at Valiyavelicham, about 35 kms from Kannur city.

Rubco Tread Rubber Division (Products) Conventional Tread 13

14 Pre- Cured Tread

VIRGIN COCONUT OIL - A brief description 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 process methodology is commonly known as Direct Micro Expelling (DME) Technology. The project also proposes to set up a centralized packaging cum marketing unit for virgin coconut oil manufactured by the co-operative processing units. Technology for the production of Virgin Coconut Oil was developed by Dr. Dan Etherington, Kokonut pacific Pty Ltd., and Canberra, Australia. Following are the advantages of Virgin Coconut Oil when compared to the conventional Coconut Oil

Even in domestic market Rubco is a major supplier of Natural rubber to all leading Rubber based companies in India, 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 a path of Expansion and Diversification.

OBJECTIVES OF THE COMPANY OBJECTIVE-SOCIAL To ensure a steady market with remunerative price to rubber growers for their natural rubber. Welfare of rubber growers particularly of small and marginal segment

OBJECTIVE- COMMERCIAL To promote , establish, maintain and manage the business related to manufacture and sales of tires, both radial and bias for Heavy Vehicles, LCV, Passenger Cars and other four wheelers 14

15 Tires for three wheelers and two wheelers Purchase and Sale of rubber in any form such as Latex, Sheets, Crumbs and Laces Manufacturing of Rubber and Rubber Wood Based Products HISTORY OF THE ORGANISATION 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. 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 the 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 companies 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 for a wide variety of commercial uses which is yet to be fully Tapped into .By realizing this potential, Rubco hopes to create opportunities and bring Industrial progress to a land that accounts for 92% of the country's natural rubber Production .

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. Registrar of Co-operative societies , Kerala Chairman, The Indian Rubber Board. President, Kerala State Co-operative Bank Ltd. Managing Director, RUBCO.

CHAIRMAN: MR. E NARAYANAN 15

16 He is a veteran Co-operator and is holding various positions as Chairman in Central and State Level Cooperative organizations.

MANAGING DIRECTOR: MR. JACOB D MATHEW He has more than 25 years of experience as CEO in Corporate Sector.

OTHER DIRECTORS Sri M.V. Koman Nambiar Sri Panneri Mukundan Sri George Mathew Sri V N Vasavan Sri U Azeez

Sri N. Chandran Sri K.Manoharan Sri V.P.Saseendran Sri Jacob D Mathew Sri K.S.Gopi Smt Satyabhama K.N The Chairman Rubber Board, Kottayam The Registrar of cooperative societies, TVM The President, Kerala State Cooperative Bank, Trivandrum

PROMOTERS Government of Kerala along with Indian Rubber Board and some district & 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, Palakkad District Cooperative Bank, Ernakulam District Cooperative Bank, Kannur District Cooperative Bank, Trissur District Cooperative Bank Trivandrum District Cooperative Bank and Kollam District cooperative Bank.

MILESTONES OF RUBCO 9th June 1997

Registered RUBCO, Commenced operations in October in the 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 Tread rubber manufacturing unit at Koothuparamba, Valiuavelicham Industrial Centre.

June December 1998

Exported rubber to Singapore & Nepal

July 1998

RUBCO takes over the reins of Sreekandapuram Latex (Pvt.) Ltd.

11th February 1999

Entered in to an important agreement on technological collaboration for manufactures of ultra light weight footwear with Hi-Tech setters.

2nd March 1999

Foundation stone laid for P.L.C factory in Sreekandapuram 17

26th May 1999

Inauguration of foot wear manufacturing unit and foundation stone laid of cycle tyre manufacturing unit.

15th June 1999

Floated Rubco sales international ltd. to professionally market the products of Rubco.

23rd June 1999

Signed a significant technical collaboration agreement with long Huat Berhad of Malasia for the processing of Rubber 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 tones of rubber first time from India .

8th March 2000

Entered

6th May 2000

Foundation stone laid for casual shoe project.

1st January 2001

Rubco Huat wood furniture factory commenced commercial production.

16th June 2001

Incorporation of RUBCO tyre 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.

into a technical collaboration with Pancarwarna Management & Consulting service, Malaysia for Manufacture of casual shoes.

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 the 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 of companies has established new factories of Rubber Footwear, Cycle Tires &Tube5 Rubberized coir mattress, processed rubber and rubber molded coir mats.

RUBCO FOOTWEAR DIVISION -Making Impressive Strides 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 Pairs per annum. The product range includes sturdy regulars and comfy Ultra-lites (manufactured under the renowned 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. Rubco's footwear range presently comprises of three leading brands -Rubco Hawaii, Rubco Rainbow and Rubco Classic. Rubco Hawai has durable flexi strap, soft Insoles and power Grip technology, offering true value for money. Rubco rainbow is 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 TYRE & TUBE DIVISION -On the Fast Track Rubco Cycle Tires & Tube division has already gone on stream Manufacturing a range of sturdy, technologically superior cycle tires and tubes suitable For rough terrains and track .The production facility, spread over 25000sq.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 tires & tubes has advanced features such And as high non skid depth improved wet-skid resistance and traction property and More mileage and puncture resistance .High tensile copper coated steel bead wires add durability and rim holding capacity .The entire range of cycle tires is being exported to the UK 19

RUBCO HUAT WOODS PVT LTD- Design on the Future A joint venture with Long Haut Group Berhad 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 help preserve the environment the. The furniture manufacturing plant has a processing capacity of 40000 Metric tones per year .The products are being exported to UK, USA, Japan and many other countries across the globe. Rub wood, the furniture range, comprises 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.

RUBCO SREEKANDAPURAM LATEX PVT LTD â&#x20AC;&#x201C;

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 â&#x20AC;&#x201C;

Crafting Winning strategies Rubco Sales International (RSIL) is a public limited 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 undertake 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.

VIRGIN COCONUT OIL The project envisages establishment of 100 co-operative coconuts processing units in Kerala, To start with, which will be increased to 200 units subsequently for the production of coconut oil directly from green coconut nuts with out going through conventional copra or milk route. The process methodology is commonly known as Direct Micro Ex (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.

FUTURE PLANS AND PROCEDURES OF THE ORGANIZATION

The main future plans and 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 tires and tubes for two/three wheelers, passenger cars, Heavy Duty Trucks and Light Commercial Vehicles. The groundwork is underway and the division will be launched in the near future. It will have a production capacity of 6 million tires and tubes annually. Location The project will be located in the proposed industrial Growth Centre being developed at Valiuavelicham, about 35 k.m from Kannur city. Capacity and Product Mix The plant will have a 2.33 million nos. of radial and bias tires per annum which. 75 million would be utilized for the truck drivers, 1.5 million for light type passengerâ&#x20AC;&#x2122;s tyre and balance would be for two or three wheelers.

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 - RUBBERIZED COIR MATTRES DIVISION

Caption: Sound technology for sound sleep

RUBCO‘s Rubberized coir mattresses factory is established in 2001and it is located at Poothakuzhy, near Pampady, Kottayam district, Kerala. RUBCO’s rubberized coir mattresses division is realized with tan investment of Rs.2.6 million .The manufacturing plant is among the very few in the country to employ advanced Australian machinery, sourced from DOA, Austria, a leader in Rubberized mattresses .The plant has an annual installed capacity of 4.8 million units, consisting of mattresses and other rubberized coir products, cushions and furniture’s upholstery. A unique feature of the main sheeting plant is that it facilitates vertical fiber orientation, a process that results in a deeper penetration of latex into the sheet making it very elastic. This provides the mattresses with uniform density through out and an extra cushioning effect. The present market of RUBCO mattresses are all over Kerala and the current production of RUBCO is 55% of actual capacity. 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 The unique feature of the main sheeting plant is that it facilitates Vertical Fibre Orientation, a process that results in a deeper penetration of latex into the sheet, making it very classic. This provides the mattress with uniform density throughout and an extra cushioning effect.

23 Rubco rubberized coir mattresses are scientifically designed to provide proper back support without compromising on comfort. By virtue of their ingenious design and construction and the unique 3-D technology, Rubco mattresses are firm without being hard and extremely durable. As they do not sag, they 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.

ORGANISATIONAL GOALS AND OBJECTIVES

GOAL: The organizational goal of RUBCO-RCM Division is to make RUBCO a leader in the market of Rubberized coir mattresses.

OBJECTIVES: Maximize the capacity of utilization of the existing. To increase the profitability of the company and to maximize generation of surplus to enable RUBCO to finance its diversification projects. To execute production on time in accordance with the market demand of the product and make available them to the distributors To maintain and improve the existing cordial relation ship between employees and the management by mutual interaction at various levels and further improve the efficiency of executives, supervisor and workers to meet further challenges To ensure strict quality control and ISI standards of products complete in the global market To maximize cost reduction To introduce new varieties of mattresses as to increase the wide range of mattress catering to diverse segments of the markets

2.3 ORGANIZATIONAL STRUCTURE OF RUBCO RCM LTD 23

Organization structure is the structure of the relationship among positions and the jobs created for the purpose of accomplishing the objectives of the enterprise. It represents the pattern of the relationships among the components of an Organization. They are: The form of the structure The functions to be performed The human aspect This 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 to do what tasks and who is responsible for what results, to remove obstacles to performance caused by confusion and uncertainty of assignment, and to furnish decision making and communications networks reflecting and supporting enterprise objectives. The companyâ&#x20AC;&#x2122;s organizational structure is diagrammatically represented by an organization chart (a diagram representative of the hierarchy of an organization's personnel).The organization chart shows the lines of responsibility between the various departments of the company.

Fig: 1 - ORGANISATIONAL STRUCTURE OF RUBCO RCM LTD

25 GENERAL MANAGER

ADMINISTRATIVE/ PERSONNEL OFFICER

PRODUCTION MANAGER

ACCOUNTS OFFICER

ELECTRICAL AND MECHANICAL ENGINEER

MECHANICAL& MAINTAINANCE ENGINEERE

SHIFT IN CHARGE LAB

PRODUCTION SECTION

QUALITY SECTION

ADMINISTRATIVE SECTION CLERK

HIGHLY SKILLED WORKERS

SHIFT IN CHARGE PRODUCTION

SKILLED WORKERS

SEMI SKILLED WORKERS

CASUAL LEARNERS

UNSKILLED WORKERS

CASUAL WORKERS

2.4. PRODUCT PROFILE OF RUBCO RCM DIVISION

Rubco manufactures a wide range of mattresses catering to diverse segments to the market. The range consists of:

HEAVEN

A 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)

HEAVEN PLUS

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

HI-TECH

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

HITECH PILLOW TOP 26

27 Superior quality mattresses finished to world class standard is available in 7 inch thickness.

DOSTH

An economy model that offers true value for money is available in 2 and3 inches.

SAFAL

A regular mattress that combines comfort and durability is available in 3 and 4 inches

YATHRI

An elegant mattress meant for hotels, hospitals, 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

HEAL

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

RELIEF

A special mattress scientifically designed for orthopedic patients. Available in 5 inch thickness. 28

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

OTHER PRODUCTS FROM FACTORY Rubberised coir block

Cushions

Soft touch pillow

CHAPTER

DEPARTMENT PROFILE

FUNCTIONAL DEPARTMENTS Departmentalization is the 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. These departments show the horizontal differentiation in an organization

The main departments are:

Production department 1.1) Production (main plant) 1.2) Production (furnishing) 1.3) Product development 1.4) Production planning and control 1.5) Lab and quality department 1.6) Engineering department

2. Administration cum personnel department

Finance and accounts department i) Stores department ii) Purchase department

4. Marketing department

3.1. PRODUCTION DEPARTMENT PRODUCTION DEPARTMENT RUBCO RCM division has progressively recorded high productivity and profitability. Production department is equipped with managers and supervisors. The machines used in the production department are of high cost and mainly imported from foreign countries like U.S.A and U.K. It is the largest functional department in RUBCO RCM division. The whole production department comes under factory manager.

Structure of production department

PRODUCTION MANAGER

PRODUCTION MAIN PLANT

PRODUCTION FURNISHING

PRODUCT DEVELOPMENT

LAB AND QUALITY DEPARTMENT

PRODUCTION PLANNING

ENGINEERING DEPARTMENT

CONTROL

Raw Material Used The main raw materials used for the production of bare mattress are Latex & chemicals Curled coir

The chemicals used with latex are Sulphur Zinc oxide ZmbT ZDC Dispersal F China clay B-rods TDQ

Final Product from this Department The final product from this department is bare rectangular shaped rubberized coir block. Rubberized coir is resilient and because of resiliency of the curled fiber. the purpose of rubber latex is to bond the resilient coir fibers together and impart shape of the product.

Number of workers of this Department The skilled worker at this department comes to 33. There is 46 semi skilled & 35 unskilled workers. Casual workers will come to 42. Temporary workers are 12 in number. The production process of Rubco RCM division consists of following stages:

Production (main plant)

Processing of coir Coir is one of the major raw material for the rubberized coir mattress, which is purchased as bundles (140 bundles = 1 load). This purchased bundle may contain moisture in them. To eliminate this moisture content it is kept in coir drier machine & by using steam from boiler it is heated for three days, where specific temperature is maintained. Thus moisture content in coir is brought down to allowable limit of 5% or below. 33

Processing of latex (Compounding section) The raw latex processing consists of tow steps: Ceramic Ball milling Ceramic ball milling is a process in which chemical required for the compounding is grinded with ceramic balls to make it dispersion. There is 3 ceramic ball milling machine of Rubco RCM factory. Compounding In this stage the above mode chemical dispersion is mixed with latex in latex stirrer machines. Sufficient quantity of stabilizers also added in to the above mixture at this stage.

SHEET FORMING STAGE The production of rubberized fiber sheets are done by the computer controlled sheet forming machine. The 7 crores investment machine generally called DOA is imported from Austria. This section has units under it.

Untwisted unit Distributor and first spraying section Drier and second spraying section. Cutting table

Here completely dried and tempered rope are fed in to the untwisted unit were the ropes are opened up to make it coir fibers and curled coir fibers are thrown by a â&#x20AC;&#x2DC;cycloneâ&#x20AC;&#x2122; in to a feeding conveyor. Fibers are opened further with air from compressors and supplied to a sheet former. The sheet former takes the fiber over and pragmatically produces sheet with partly vertical fiber orientation adjustable width and surface weight. The sheet is sprayed with compounded latex from the top in the automatic spraying section called spraying gun. The sheet is then dried in its passage through the tunnel drier. After drying in its first passage, the sheet is automatically turned over and sprayed with compounded latex on the other side. After the final drying the sheets are cut to the required size in automatic cutting machine. PRESSING STAGE The sheet formed from DOA machine are piled up and progressed in a continuous roller press to get the desired weight. Then these sheets and the hand sprayed in a spraying booth with compounded latex these progressed parts are kept in a hydraulic hot press to active the required dimensional stability. VULCANIZING STAGE 34

35 The pressed pads are then loaded in a trolley and further processed, in a Vulcanize to give the desired resilience to the product. On Vulcanization properties such as tensile strength, heat resistance and resistance to ageing of rubberized coir are improved .

TRIMMING After Vulcanizations the bare blocks are cut in machine called band saw to form rectangular bed like a block of desired length and width. FINAL INSPECTION After final inspection and checking this bare block are given the furnishing department for further processing.

STRUCTURE OF THE PRODUCTION PLANT Production Department

Coir Ropes

Cenex and Desludged Latex

Coir Drier

Compounding (Latex, mixed with chemical)

Untwisting machine

Sheeting Plant

Conveyer Drier

Pre- Press

Piling and Weighing

Cutting Machine

Surface spraying

Hot Press

Vulcanizer

Inspection

Trimming

Sending to furnishing department

Quality Control

35 Dispatch

Production (Furnishing) Furnishing Department comes under factory manager. At furnishing department the â&#x20AC;&#x2DC;bareâ&#x20AC;&#x2122; mattress from production-plant is brought I to furnishing department and it is fabricated with Rexene and clothes and packaged and made ready for dispatch. The major machinery in furnishing department is all imported one. furnishing department works as per the daily work order given by planning department. According to work order only labor is deployed every day.

Functions of furnishing Department Furnishing at different model of mattress, cushion and pillows as per the set standards. Find inspection of mattress, cushion, pillow and other bedding accessories. Labeling, packing and dispatching mattress and cushion. Preparation furnishing material Dispatch- dispatch of mattress, cushion and pillows as per planning department instructions. Reworking of rejected mattress after referring the condition.

Furnishing process steps Corner cutting adding Feeding Stitching Quality checking and inspection Labeling

MAJOR MACHINES USED IN FURNISHED DEPARTMENT

QUILTING MACHINE

This machine produces covering PU form ponds for Heaven, Relief, Hi-Tech, Heaven plus, Hi-Tech pillow top. This machine is fully computerized and imported from UK. It is capable of producing thousands of variety of designs. BORDER STICHING MACHINE

PU foam together with the upholstery is feed in to this machine where the machine stitches the borders which are rolled and passed to the stitching section.

TAPE EDGE MACHINE Quilted tapster together with the borders kept on rubberized coir pad is feed in to the machine, which stitches on the sides, and mattress are now ready for packing. OTHER MACHINES: Corner cutting machine Sewing machine Fabric cutting machine 37

38 Sealing machine Handle stitching machine

Consumables required for furnishing department Quilted fabrics PU Forms Clothes Threads Expanded poly ethylene sheets Threads Labels Poly ETHYLENE covers Tapes

Labels Fixed on the Mattress ISI Sticker Brand Name MRP sticker Quality CHEK sticker

STRUCTURE OF FURNISHING DEPARTMENT

SHIFT IN CHARGE

PRODUCTION SUPERVISOR

HIGHLY SKILLED

WORKERS

PRODUCTION SUPERVISOR

SKILLED WORKERS

UNSKILLED WORKERS

PRODUCTION

SUPERVISOR

SEMI SKILLED WORKERS

Product Development

he 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.

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.

Lab and Quality Control Department Rubco’s products have domestic and international acceptance due its stringent quality maintenance. A well equipped lab functions at Rubco RCM division to assure the quality maintenance and quality control of mattresses produced here. This department comes directly under factory manager. 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.

The functions of Lab & Quality Assurance Department They are classified into two: Quality assurance function Laboratory function 40

Quality Assurance Functions:

Strive to achieve international quality standards to the products through various quality inspection methods. Ensure quality of raw materials purchased. Ensure the quality online process of production. Supervise the production process at various stages to make sure that quality policy of Rubco is strictly maintained through out the manufacturing process. Ensure the quality of finished products Assure quality of contract material Assure quality of packing and sealing Assure quality of transport Carry out research and development activities with product development department.

Laboratory functions of Lab & Quality Assurance Department

Testing of material this include testing and analysis work of raw materials like latex and coir, furnishing materials like cloth, PU foam cotton, blanket, threat etc and finished product. Effluent treatment plant The effluent treatment functions also come under lab. Testing of sub-contract material. Testing of packing and sealing Customer relations management. Here lab works in tandem with marketing department Vendor analysis.

Effluent Treatment Plant At the effluent treatment plant rubber and latex is separated from the effluents and this water is used for irrigation purpose in the garden at Rubco RCM factory compound. 41

42 Personnel in Lab Only shift-in-charge (lab & Q.A.) quality supervisor lab and a clerk are the permanent staff. The rest of lab technicians, lab assistants etc. are all temporary employees. Shift-in-charge (lab Q.A.) is at freedom to appointment these technicians, and assistants according to the need.

QUALITY TEST FOR RAW MATERIALS

TEST FOR COIR Moisture content test: The purchase-curled coir may contain moisture from atmosphere. To detect this moisture content test is carried out. The permitted level of moisture in coir is 5% of below.

TEST FOR LATEX To measure whether the quality of purchased latex meets with the specific standards following tests are conducted:Dry rubber content test Total solids test Test for ammonia Volatile fatty acid content test Mechanical stability test

QUALITY CONTROL PROCEDURE To maintain the quality policy of RUBCO and assure the quality of bare mattress block as well as rawmaterial, various quality control procedures and test are adopted in the lab. They are: -

Test for mattress The block rubberized bare are subjected to the following test:Indentation Hardness Test This test is conducted using indentation hardness apparatus. A 10cm x 10cm sample block is taken from the bare mattress and this block is compressed to 40% of its original thickness by applying a load of 500gm per minute. Flexing Test 42

43 This test is done to check the internal hardness of bare mattress. The bare mattress block is kept in flexing apparatus and subjected to 250000 times of flexing to check the hardness. Compression Test This test is also done to check the hardness of bare mattress. It is kept in for 22 hours. 3 hours after the release of the load reading is noted from the compression test apparatus, under following condition. At atmospheric conditions In hot air oven (700 C) Ageing Test This test is done to test the durability performance of the mattress. PH Test PH test is conducted to analyze the durability performance of the mattress. Sulphate Test To estimate the sulphate contents the extract of rubberised coir sheet

STRUCTURE OF QUALITY ASSURANCE DEPARTMENT

Shift in charge

Production supervisor Quality supervisor

Workers

ENGINEERING DEPARTMENT Functions of Engineering department:

Instrumentation Electrical maintenance Maintenance & utility Boiler unit maintenance

3.2 ADMINISTRATION CUM DEPARTMENT

PERSONNEL

ADMINISTRATION CUM PERSONNEL DEPARTMENT

Human Resource Management RM 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 Organization, government, business, education, health, recreation and social action. .The main functions are: Conducting job analysis Planning Labour needs and recruiting job candidates Selecting job candidates Conducting orientation and training programs for new employees Managing wages and salaries Providing incentives and benefits. Appraising the performance Communication with employee (interviewing, counseling, discipline) Training and developing managers Building employee commitment Human resource is the greatest of all resources RCM division have the total strength of employees & staff of Rubco RCM factory is 218, out of which permanent are alone will come up to 147. It is a high to manage this large resource. For that efficient functioning of administrative cum personnel department needs special mention. The department comes under administrative cum personnel officer.

STRUCTURE OF HR DEPARTMENT

A.P.O

STENOGRAPHER

TIME OFFICER

Jr. CLERK

SECURITY WING

RECEPTION

The Functions of Administrative cum Personnel Department

The function of administrative cum personnel department can be divided in to heads: Administrative function Personnel functions 47

ADMINISTRATIVE FUNCTION

Laisoning with government and local bodies. Correspondence with various government and non-government organization. All the internal and external mail, letter and memo, registered items handled by this department Security-A well equipped security forced is provided for safeguarding everything inside the factory complex. Monitoring the daily inward and outward dispatch.

PERSONNEL FUNCTION

Man power planning The main object of man power planning in Rubco RCM division To ensure optimum use to human resources employed. To determine further recruitment level To forecast further skill requirements that will serve as a basis for training and development programmes.

Manpower planning process Following are the steps involved in manpower planning at Rubco RCM division Analysis of current system Forecasting the time horizon of the plan Reconciliation of action plans Recruitment Recruitment is the process of searching right persons and stimulating them to apply for job in the organization. Rubco RCM division follows a centralized system of recruitment at head office level. Only recruitment of casual workers is directly done by RCM division in itself. Selection In Rubco RCM division selection of employees are done at two levels-at the workers level and at managerial level. The workmen are divided into 3 levels based on their skills. They are: Skilled workers 48

49 Semi skilled workers Unskilled worker

Induction The main functions of induction process at Rubco RCM is to make the worker understand the relevance of his or her in the overall organization set up, apart from the general orientation programme concerning all aspects of the company operation given by personal department specific induction programme are also conducted depending upon necessity.

Employee remuneration and compensations At Rubco RCM the employees are remunerated well considering its year of inception was just 3 years back. The average wage of permanent workers is more than 150per day allowances. The wages is given on a monthly basis. The employee compensation for accidents happening in the factory is also handled by personnel department.

Training and Development Training is a learning activity, which is directed towards the acquisition of specific knowledge and skills for the purpose of an occupation or task. Development can be considered as any learning activity, which is concerned more with career growth than immediate performance.The factory rigorously follows its training and employee development activates focusing on up gradation of technical and behavioral skills. The training officers of concerned programs include both internal as well as external training personnel. External agencies include personnel from worker educational centers as well as from professional training agencies. Internal training includes both in house training and on the job training. The development programmes for top manager are done by head office which is mostly external.

Evaluation of training programme Evaluation is done to determine whether or not the objectives and content of the training courses are consistent with the aim and current needs of the company and whether these objectives being reached in the most effective and economical manner, Evaluation of training programme is conducted through Internal assessment, evaluation is based on measuring the performance of employees before and after training periods .

Performance appraisal Performance appraisal is a systematic and objective way of judging the relative worth or ability of an employee in performing his job. the performance appraisal in RCM division of Rubco is normally conducted for: 49

50 (a) Identifying employees for further increment in salary or position (b) Determining training needs for further improvement in performance. (c) Motivating employees by indicating their performance levels.

INTERNAL ASSESSMENT DATA CARD

RUBBERISED COIR MATTRESS DIVISION KOTTAYAM INTERNAL ASSESSMENT DATA CARD Employeeâ&#x20AC;&#x2122;s Name Raters Name

Dept:

Date:

Item No.

Description

Attendance

Attitude

Punctuality

Work Awareness

Co-operation

House keeping

Initiative Marks Obtained Total Marks Grade

Ass-1

Ass-2

Ass-3

Ass-4

Ass-5

Ass-6

Total

Remarks:Verified by H R Manager

Approved By General Manager

Welfare of Employees

All employees in the organization are covered under the employeeâ&#x20AC;&#x2122;s state insurance scheme. Festival advances are given to the employees on the occasion of notified festivals. Annual bonus/incentives are paid out to the employees as per the company rule Drinking water Latrines and urinals Canteen Transportation

Health and Safety

Safety - company is very much aware of the safety needs of the worker. Rubco RCM division has a very good safety policy in which it was envisaged to make it an accident free organization. the company has identified the probable area of accidents and the worker working over there are given extra training and proper caution boards displayed at accident prone areas. First aid facilities are provided in the factory for all employees. Health - Health is wealth for employees as well as for managers. Rubco RCM division has done enough measures to ensure mental as well as physical health of employees. Precautions take to avoid dust in factory complex. 51

Industrial Relation Administrative cum personnel department looks after the key area of union and management relationship. the department has set in place on effective system to speedy sort out any difference and disputes. The department gives updated reports on the labor situation to the head office time to time.

Employee retention Most of the employees are young who are gaining experiences at Rubco. So after going enough experience they may opt for other companies. So in order to retain them and build loyalty towards the organization. Administrative cum personnel department has drawn clear cut plan and are working towards the plan by implementing it on a step by step basis. ABSENTEEISM Absenteeism rate in Rubco RCM is normal only. More than 940 attendances are maintained. Management has initiated many steps as the absenteeism is coming down GRIEVANCE REDRESSAL A very good grievance redressal system is in place in the factory. An employee has full freedom to take up any grievance with his immediate supervisor, who tries to solve it to the extend possible. If the employees still feel aggrieved, then he can take up the matter with the next higher authority up to the level of administrative cum personnel officer .

WORK COMMITTEE

The factory has a 9 member work committee constituted under the provision of industrial disputes act 1947. It is working smoothly. Workers welfare as well as health measures are generally revised in work committee. TRADE UNION

The trade union in Rubco RCM division is Rubco employees union. In the factory there exists a good and healthy relationship between management and trade union. The union is lead by C.I.T.U.

3.3

Finance department

and

Accounts

Finance and Accounts 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 is the life blood of business of the entire organization .Accounts department at RUBCO RCM division is responsible for all financial decision in the division, which involves decision regarding financing, investment and working capital. All financial activities in the division routed through the accounts department .The accounts department RUBCO RCM gets funds from finance department of head quarters. The stores and purchase department also comes under this department.

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 Functions Passing and settlement of all miscellaneous advances. Perform all works connected with insurance coverage of fixed asset. Keeping personnel file of employees relating to salary computation and annual increment. 53

54 Prepare profitability trend reports and wage analysis. Quarterly and yearly financial report preparation. Making bank statements Preparation assisting the coordination at all works connected with finalization of accounts. Assisting statutory/ vigilance/ auditors from head quarters. Make internal and external purchases.

STRUCTURE OF ACCOUNTS DEPARTMENT

ACCOUNT OFFICER

ACCOUNTANT

JR.CLERK

STORE KEEPER

JR.CLERK

Functions of Accounts Department

Exercise control over cash Passing and settlement of all miscellaneous advances Performing all works connected with insurance of fixed assets 54

PURCHASE OFFICER

JR.CLERK

55 Settlement of telephone and electricity bill Keeping personnel files of employees relating to salary computation

and annual increment

Preparation and maintains of accounts and book up- to- date, that are required under different acts Preparation of Financial Statements Over view of internal and external purchase Preparation of profitability trend report and wage analysis Preparation of monthly profit and loss account and cash flow statement and present them monthly to top level managers meeting of whole RUBCO Group at RUBCO headquarters.

BANKERS OF RUBCO RUBCO RCM bankers are: District Co- operative Bank, Kottayam State Bank of Travancore.

PROFITS 2003 – 2004

- 100 lakh

2004 – 2005

- 145 lakh

2005 – 2006

- 100 lakh

2006 – 2007

- 10 lakh

2007 – 2008

- 50 lakh

2008 - 2009

-58 lakh

STORES DEPARTMENT

Stores department is an auxiliary department .It functions under accounts officer. 55

STRUCTURE OF STORES DEPARTMENT STORES DEPARTMENT

STORES KEEPER

STORES CLERK

SEMISKILLED LABOUR

Functions of Stores department

Receipt of incoming material. Efficient and orderly record keeping of all materials in storage. Stores of material in safe and conventional location. Issue of material against written authority. Timely intimation to proper authorities regarding out of stock conditions. Prevention of damages, losses and unauthorized uses etc. Rejected materials management Sales return management 56

57 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 value in quantities. There is a separate section for rejected products. 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.

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 PURCHASE DEPARTMENT

58 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 uninterrupted flow of production.

STRUCTURE OF PURCHASE DEPARTMENT

PURCHASE OFFICER

JR. CLERK

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. 58

59 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. 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

Requisition The power of approving material requisitions is with Rubco head quarters. Purchase proposal: After purchase requisition has been approved by the head office, the order is Placed. 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. 59

60 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. 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.

3.4.MARKETING DEPARTMENT MARKETING DEPARTMENT Marketing is the foremost function that gives the management hopes for their integrated task through making profits. It is a social and managerial process by which individuals and groups obtain what they need want through creating and exchanging products and value with others. Marketing of Rubco mattress is done by Rubco Sales International ltd. (RSIL) at H.O. Kannur. Rubco Sales International ltd. (RSIL) is a public limited company promoted by Rubco to spear head the sales and marketing activities for Rubcoâ&#x20AC;&#x2122;s entire range of products in the domestic and international markets. With in a short span of its inception, RSIL could effectively develop a competent network domestically as well as globally and undertaken the successful launch of Rubcoâ&#x20AC;&#x2122;s product. Its efficient & effective marketing strategies helped the organization to build up a very strong brand name.

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.

FUNCTION OF RSIL Gather market information Monitoring of supply chain system Nurturing and sustaining excellent customer relation 61

62 Helps to achieve product innovation and modifications by way of conducting marketing R & D and consumer survey. Through better and effective distribution network expansion as well maintains it ensures improved product availability at reduced cost. To help the production units to better and improve the quality of the product.

RSIL is a Separate Department to spear head the Marketing activities of Rubberized Coir Mattress product at its factory in Pampady. The Sales personnel of Rubco Marketing Dept. (RCM) include two Jr. Sales Officer and 6 Sales executives. In the highly competitive sector of rubberized coir mattress where there are almost 120 odd as well as half a dozen organized sector players are existing, the marketing Department (RCM) had done an excellent job in making the Rubco almost a market leader in the state with in a short span of 3 year. Rubco mattress has also entered Tamil Nadu with setting up of distribution channel in Chennai and Erode. With the aggressive market expansion plans and the domestic sales turnover of Rubco Rubberized. Coir mattresses are all poised to double. As Rubco has entered in to export deal with some of the European Union nations and the shipment already flagged off, the current years sales figures may even go up further.

ORGANIZATIONAL STRUCTURE OF RSIL

NEW MARKETING INITIATIVES The marketing initiatives other than maker expansion include the function of new innovative products like

Budget mattress 63

64 Foldable Mattress Mattress protector (comforter) Hi-Tech pillow top mattress with 7 inch thickness Cosi pillows Latex pillows

Pricing The price denotes the value of a product or service expressed in money. Rubco’s pricing strategy on its mattress is largely competitor based (going rate pricing). Rubco charges the price as per Duroflex price.

The pricing policies of Rubco RCM also include. The price quoted is inclusive of transportation charges. The margin for distributor is 11% on transfer price and margin for retailer in 20% on MRP in Kerala and 25% on MRP in Tamil Nadu. The retailers are at freedom to sell below MRP.

Promotion To win the battle of competition every manufacturer has to choose a number of promotion tools which can be classified as advertising . Publicity and sales promotion.

Advertising The advertisement of Rubco rubberized mattress is done through ‘Maabozell communications Ltd’ Erankulam, an advertisement agency. The ad budget of Rubco rubberized coir mattress for the financial year 2003-2004 Total Rs. 3.58 crores i.e. more than 10% of the expected sales.

Packing 64

65 Packing of the product plays vital role in the success or failure of a product. Packing strongly affects the purchases decision. Packing is the covering given to a product for protecting it. On the plastic covering of Rubco mattress contains information regarding its unique 3-D technology.

Exports Exports is not a function of Marketing department (RCM) at Kannur. This function is done by RCM factory Pampady itself. This year Rubco has started exporting of its mattress to some European Union Countries. Rubco RCM division also receives enquiries from Sri. Lanka, U.A.E. and other Middle East centre. As Rubco RCM decision strictly follows its quality policy and product satisfaction of the customer the exports Opportunities are plenty. As for exports ISO certification is preferred, Rubco RCM division is all set to take ISO 9001 certification shortly.

STRUCTURE OF SALES NETWORK RUBCO (Manufacturer)

DISTRIBUTOR

RETAILER

CUSTOMER

CHAPTER 4

ANALYSIS & INTERPRETATION

SWOT ANALYSIS - RUBCO MATTRESS

The overall evaluation of companyâ&#x20AC;&#x2122;s strength, weakness, opportunities and threats is called SWOT analysis.

Strength Rubco mattress division has lot of product variety and price range. In the company there is exists a cordial relationship between employee and top level management and among dealers and distributor. 66

67 Through effective marketing Rubco products could have acquired wide market acceptance & customer preference with in a short period of being time established. Style of leadership that company following is leadership through dedication and coordination. That encourages employees of the organization to work towards their organizational goals. The strength of the company lies with the quality of their products, wide range of products capable to challenge variable environment condition, goodwill, and customer service, technical advice marketing intelligence, wide network , and interaction with customers. Effective material management system is one of their strength... Good financial management system that exist in the organization.

WEAKNESS RUBCO is newly established company, most of the employees are freshers and therefore the company has to conduct training programmes to improve their skill. So large volume of productive time is consumed to make enable these inexperienced workers to familiarize with their work procedures to be followed. Higher price compared to their competitors. Rubco plans 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. Lack of promotional activities abroad

Opportunities The company has introduced lot of product variety in to the market therefore customers having lot of alternatives to make their own decision. Rubco RCM division is not yet fully tapped their 100% utilization of existing machine capacity so opportunities lies there. The factory can undertake new projects regarding projects diversification. Opportunity of identifying the regions where introducing more and more quality products so that structure can withstands the different regional environment. Rubco mattress facing high level competition in the market; but their products having higher demand in the market, it is because of the quality policy that they are adopting in their production process. Rubco - Rubberized Coir Mattress planning to be entering into foreign markets.

Threats 67

68 Fluctuating price of raw materials Lack or Raw material Increasing competition Taste of customer varies Product Differentiation For the past several years company is facing severe competition. RUBCO ensure high quality products due to which the price of the product is comparatively high compared to its competitors. So there is possibility that customer can switch to its competitors.

CHAPTER 5

FINDINGS & SUGGESTIONS

FINDINGS & SUGGESTIONS 5.1 FINDINGS

RUBCO is manufacturing eco-friendly products, making sure that it does not cause any kind of harm to the society. This had created is subsequent effect regarding the goodwill of the company. Presence of good industrial relations with local unions and there is greater co-operation between management and employees. As a result of efficient monitoring and quality control at every stages of production, wastages and rejections are brought down. Wage system is fair in RUBCO Labor turnover is very low. Workers health and safety are given prime importance. A good coordination exists between different departments. In RUBCO RCM division there exists an opportunity to diversify the product line. There is provision to manufacture other rubberized coir products rather then mattresses, like cushions and furniture upholstery

5.2 SUGGESTIONS

Considerably within a short period of time being established Rubco Division 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. What ever be the orders, what ever be the risk, what ever 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 diverse 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: 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. 70

71 If the customers will be able make the orders online, the company will be able to increase the sales, mainly abroad. The company has to engage in production of variety products. It has to add new product line thus widening its product mix i.e., cushions and furniture Upholstery and it has to deepen its product mix if it has to acquire a strong reputation in the single field. The company has to make strengthen their supply chain in other states, in order to tap the target market. The company has to take care about the conveyance facility to employees.

CONCLUSION

The internship study is helped to make a valuable conclusion through the analysis of different functional departments of the Rubco Presently with the prominent niche in the market, it is preferably ranked at the top with consideration to quality. The core competencies of the organization can be listed as below:

Professional Management 71

72 Effective Leadership Cordial relationship between employees and top level management. The company has well established network in industry with sound manufacturing and marketing experience. The Company has adequate resources available for expansion.

BIBLIOGRAPHY

WEBSITES: www.rubcogroup.com www.rubcomattress.com www.rubberindustry.com www.rubcorcm.com 72

HUMAN RESOURCE MANAGEMENT: DESSLER, Human Resource Management-Ninth Edition JOHN M IVANCEMCH, Human Resource Management - Eighth Edition MARKETING: MALHOTRA, Marketing Research - Third Edition, Prentice-Hall of India Private Limited, New Delhi PHILIP KOTLER, Marketing Management Delhi

Millennium Edition, Prentice-Hall of India Private Limited, New

FINANCE: Dr. PRASANNA CHANDRA, Financial Management - Fifth Edition. Tata McGraw-Hill

JOURNAL: Rubber Ais Vol. 17, August 2006