Raja Project Mani
Raja Project Mani
Raja Project Mani
The internship training report submitted to the Anna University to technology, Combatore in partial fulfillment of the requirements for the award of the Degree of
Submitted by
DEPARTMENT OF MANAGEMENT STUDIES C M S COLLEGE OF ENGINEERING, C M S Nagar, Eranapuram, Namakkal-637 003 AUGUST 2010
BONAFIDE CERTIFICATE This is to certify that the project work titled A STUDY ON
ORGANIZATIONAL STUDIES
Dindigul. is a work of RAJASEKAR.K (REG. NO.098001602032) that carried out the same under my supervision. Certified further that to the best of my knowledge the work reported herein does not form part of any other project work or dissertation on the basis of which a degree or award was conferred on an earlier occasion of this or any other candidate. This project work is submitted to Anna University Coimbatore as partial fulfillment of requirement for the award of degree of Master of Business Administration. .
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DECLARATION I RAJASEKAR.K hereby declare that the summer training report, entitled A STUDY ON ORGANIZATIONAL STUDIES OF S.S INTERNATIONAL EXPORT TANNING submitted to the Anna University Coimbatore in partial fulfilment of the requirements for the award of the degree of MASTER OF BUSINESS ADMINISTRATION is a record of original and independent research work done by me during June 2010 to August 2010 under the supervision and guidance of Mr. K.RAVISHANKAR, MBA lecturer , DEPARTMENT OF MANAGEMENT STUDIES , C M S COLLEGE OF ENGINEERING,NAMAKKAL and it has not formed the basis for the award of any Degree / Diploma / Associate - ship / Fellowship or other similar title to any candidate of any university .
Place: Date:
ACKNOWLEDGEMENT I am grateful to correspondent cavalier C.MUTHUSAMY, chairman and correspondent of CMS College of Engineering, NAMAKKAL for his encouragement in doing this project. I express my special privilege and everlasting heartfelt thanks to Principal Prof. Dr.A.NELSON KENNEDY BABU PhD, CMS College of Engineering for his guidance and encouragement. I am obliged to A.Prof. Mr.K.G.SENTHIL KUMAR, M.B.A., M.Phil, (PhD), HOD and department of management studies for their moral support to complete the project work. I take this opportunity to express my gratitude to my internal guide
Mr.K.RAVISHANKAR,MBA, Department of Management studies, which offered constant support and valuable guidance and remained as backbone for successful completion of my project work. I wish to express my special thanks to my parents and to my parents for completing this project work. Finally I am thankful to all the faculty members of the department of business administration without whose continuous support; I would have not completed this project successfully.
CONTENTS
Chapter No Title Page Certificate (s) Declaration Acknowledgement 1 2 Introduction to the Institutional Training Industry Profile About the industry Industry leaders Estimations of the earnings Market Performance Market share Scope of the industry Company profile About the company Vision and Mission Market Policy statement of the company The organization hierarchy Departments Products & Services Learning and Findings from the company Purchase Production Finance Human Resource Marketing Theoretical concepts and Real practices Conclusion Annexure Bibliography and References Particulars Page No
5 6
CHAPTER NO: 1
INTRODUCTION TO INSTITUTIONAL TRAINING
The trainee has undergone the training with the following objectives. To know the profile of the S.S INTER NATIONAL EXPORT TANNING. To study and understand the various departments in S.S INTER NATIONAL EXPORT TANNING Identify the problems S.S INTER NATIONAL EXPORT TANNING To study the arrangement of procreating of marketing of leather goods.
1.4 Limitations of the training The trainee has experienced the following limitations. 1. The training period was very short 2. The trainee has not provided any detailed information about S.S.INTERNATIONAL EXPORT TANNING. 3. Paucity of time the trainee has not gained adequate experience in many departments in the company.
CHAPTER NO: 2
INDUSTRY PROFILE
Today the industry ranks 8th in the export trade in terms of foreign exchange earnings of the country; India is largest livestock holding country; The Indian leather sector meets 10% of global finished leather requirement. The export destinations of Indian finished leather and leather products in 2006-07 were as follows: The main production centres for leather and leather products are the following: Tamil Nadu Chennai, Ambur, Ranipet, Vaniyambadi, Trichy, Dindigul and Puducherry West Bengal Kolkata Uttar Pradesh Kanpur, Unnao, Banther, Agra and Noida Punjab Jallandhar Tamil Nadu accounts for about 40% of Indias exports and has about 60% of tanning capacity. The Indian leather industry employs about 2.5 million workforce and 30% of the workforce is women. The industry has a very strong institutional set up. The following are the major institutions cater to the industry: CLE Council for Leather Exports (Under Ministry of Industries and Commerce); CLRI Central Leather Research Institute (Under Department of Scientific and Industrial Research, Ministry of Science and Technology) AISHTMA, All India Skin Hide Tanners Merchants Association ISF, Indian Shoe Federation IFLMEA, Indian Finished Leather Manufacturers and Exporters Association CFTI Central Footwear Training Institute ILIFO, Indian Leather Industry Foundation
To boost the country's leather industry, the Indian federal government has earmarked a Rs 4.5 billion (US$ 95 mn) grant to be made available to the industry over a span of five years but that's not without any string. The fund availability is conditional upon the sector's attracting an annual investment of Rs 2.2 trillion. In 2002, investments in the leather sector stood at Rs 410 million. Footwear and their components account for about 25 percent of India's total leather products exports. These two markets also offer Indian leather industry vast scope for exports of saddler and harness.
Besides the European market where Indian leather products already enjoy a strong presence, the US too is emerging as a very strong and promising export destination for Indian leather industry. US today accounts about 25 percent of a massive US$ 96 billion global trade in leather and leather products. The importance of European market could be gauged by the fact three major EU countries-Germany, Italy and UK- today accounts for approximately 42-45 percent of leather and leather products exports from India. These three countries together exported leather products worth US$ 814.82 mn in 2001-02 against country's total leather and leather products exports valued at US$ 1.93 bn.
CLE is trying to make a dent in new markets. Focus countries include the Latin American countries, Israel and Japan. Japan is the fifth largest importer of leather & leather products in the world. Japan now imports over US$15 million worth leather and leather products from India. In fact, between 1998-99 and 2001-02, India's exports leather products to Japan have more than doubled. According to the latest available provisional data, exports in the first 10 months in fiscal 2002-03 to Japan stood at US$ 7.53 mn against US$ 7.30 mn during the comparable period of 2001-02. CLE aims at raising India's share in Japan's total imports of leather and leather products to 2 percent by 2005-06 from the current level of 0.5 percent which in other words means forex earnings to the tune of US$ 70 mn in next three years from the 2001-02 level of over US$ 15 mn. According to a CLE report, the domestic production of leather & leather products in Japan is declining largely due to high production cost. This has opened up a great scope for increasing India's share in Jao leather market. The Japanese market offers great scope for export of middle price ranges of shoes, garments and other accessories as upper segments are already dominated by Italy and China.
Italy is yet another favored export destination for Indian leather industry. Through joint ventures with Indian companies, CLE has helped bring in Italian leather footwear manufacturers to set up export production bases in India. In fiscal 2001-02 India exported US$ 262.49 mn worth of leather and leather products against US$ 241.07 mn in 2000-01 to Italy. The global downturn however like other sectors had severely impacted leathers exports by India. The first 10-month exports to Italy too showed a slow growth. Exports during this period in fiscal 2002-03 stood at US$ 132.21 mn against US$ 151.90 mn year-on-year basis. It is unlikely the year attained the US$ 2-billion-target set for fiscal 2002-03.
India is the second largest footwear producer in the world. It accounts for 20 percent of India's total export of leather and leather products. Major markets include the UK, USA, Germany, Italy, France, Netherlands, Canada, Sweden and Russia. Of total exports of footwear from India, around 64 percent goes to UK, USA and Germany.
Indian leather industry has capacity to produce l776 million pairs; 112 million pairs of Shoe Uppers; Non-leather footwear - 960 million pairs of non-leather footwear's which includes shoes made of rubber, molded PVC and other material.
India's new Export-Import policy for 2003-04 has among others gone in favour of leather industry. CLE chairman S S Kumar maintains: "As far as leather & leather products are concerned, the changes made in the EPCG Scheme in regard to criteria of export obligation on the basis of duty saved, allowing import of 10 year old machinery, and permitting import of spares for existing plant & machinery etc would make the scheme more attractive and useful. Further, allowing the exporters to export any other products in fulfillment of export obligation under the scheme is a major step forward and would provide greater flexibility in a ailment of the scheme. The industry welcomes these measures".
The lowering of value addition norms under the DFRC Scheme from 33% to 25%would benefit the exporters and the industry feels that extending the benefit of the scheme to deem export is a right step encouraging the domestic suppliers of raw materials and inputs to the exporters. CLE is of the view that the duty free import entitlement benefit extended as a premium to the status holders achieving higher growth rate of more than 25% in FOB value of export in free foreign exchange, will encourage the status holders towards attainment of the incremental performance. "The status holders would now be able to achieve competitive levels of production by such duty free entitlement", Kumar maintains adding "allowing annual Advance licensing facility to the status holders will enable such units to go for planned procurement of raw material and components based on annual production programme".
Over the years, DEPB scheme proved to be really beneficial to the exporters as an instrument of export promotion. However, the DEPB rates in respect of a few items like leather garments, leather bags, small leather goods, leather sandals, non leather footwear etc have now been reduced by 1% to 2% due to general reduction in the basic customs duty from 30% to 25% in the Union Budget 2003-04. Kumar says "The present reduction in the DEPB rates would definitely impact the export of these items particularly since the overall export performance is showing a sluggish trend.
In fact, the Council earlier made a specific representation to the Government specifying that the reduction in peak rate of duty has only negligible impact on the average customs duty incidence since most of the inputs used by leather & leather products industry were already under confessional import duty of 25% for the past several years, and pleaded to continue the DEPB rates without any reductions. Despite this, DEPB rates have now been reduced". The CLE chairman hopes that the new EXIM Policy would help achieve the US$ 2.6 billion target to be achieved by 2006-07.
According to DGCI&S provisional estimate, India's leather and leather products exports in fiscal 2002-03 stood at US$ 1.81 billion signifying 6.30 percent decline from previous fiscals total exports of US$ 1.93 bn. While leather and leather footwear exports showed positive growth, exports of footwear component registered negative growth. Exports of leather in fiscal 2002-03 grew by 6.24 percent at US$ 487.91 million from US$ 459.25 mn in fiscal 2001-02. Leather footwear exports were up 3.61 percent at US$ 409.67 mn against US$ 395.39 mn in 2001-02. However, exports of footwear component in 2002-03 dropped by over 26 percent to US$ 171.43 mn from US$ 233.94 mn in 2001-02.
ORGANIZATION STRUCTURE
Board of Directors
Managing Directors
Manager
Auditor
Technical
DEPARTMENTS VISITED Purchasing Department Storing Department Personal Department Production Department Finance Department Marketing Department
SERVICES is a reliable name in the industrial world for offering integrated technical consultancy services. Its various services are: Pre-feasibility study, New Project Identification, Project Feasibility and Market Study, Identification of Profitable Industrial Project Opportunities, Preparation of Project Profiles and Pre-Investment and Pre-Feasibility Studies, Market Surveys and Studies, Preparation of Techno-Economic Feasibility Reports, Identification and Selection of Plant and Machinery, Manufacturing Process and or Equipment required, General Guidance, Technical and Commercial Counseling for setting up new industrial projects and industry.
CHAPTER NO: 4
LEARNING AND FINDING FROM THE COMPANY
Purchasing Department:Raw material: The company is buys the leather skin of sheep and goat as the size of each side lid skin or belly varies the size of ordered product will vary. The common salt in spread on the unprocessed leathers. It is maintained in normal temperature. They purchase the leathers according to the size that they required.
E.I.method
Liming Unhairing and reliming Flashing and scudding Deliming Picking Pre- tanning Tanning Selling and myrobing Stuffing Oiling
Finished leather
Christ method: Christ method Raw material to liming Deliming to pickle Cristing Machine work Finished work DETAILS OF PROCESS CRUSTS METHOD:-
2. Soaking:
The raw materials used for soaking are (500%) water, soaking enzyme (0.2%), sodium sulphite (0.1), UFS (0.1%), it is kept undisturbed for 5 hours.
3. Pasting:
Take 20% of water, 15% time paste, 20% sodium sulphide the paste is proposed. This paste is applied to we flash side of the leather and this is kept for 4 hours. It is used to remove the hairs to the skin.
4. Liming:
Water 300%, lime paste 10%, sodium sulphide5%, welting agent are mixed and kept in paddle for 3 days
5. Deliming:
After 3 days to remove the liming in the skin, deliming in done by adding below substances. Water Ammonium chloride Sodium bicarbonate -200% -1% - 0.5% 20
6. Degreasing:
To remove facts, this stage is followed. It is done by adding UFS (1%) boran SAF (10%) for 60 minutes and water (300%) for 20m.
7. Pickling:
Pickling is to prevent the spoiling of leather water (80%) (15%) salt is added and kept for 10 . In addition to that sodium for mate (0.5%) for 15 and sapphire acid (1%) for60.
CRUSTING:A. Washing: The leather was wasted by water, acetic acid for20. B. Neutralization: By using soda-bi-carbonate, the leather are cleaned and pusified by water. PH is maintained about (5.2%). MACHINE WORK:1. Wet setting: Wet setting is used to increase the area of leather. 2. Stacking: Stacking work is used to impart soft to the leather. 3. Dry setting: This is final step on the leather. 4. Buffing: This is used to remove the leather flesh. 5. Finishing: The finishing process involves the cleaning of dust on the leather by using brush.
E.I Method Raw to Liming Deliming to Pickle Pickle to E.I Final to E.I Finished Work
E.I Method 1. Raw material to liming: Wet salted goat skins are having length about 24 inches along his back bone. The salted goat skins are soaked in water for 60 minutes. 2. Soaking: The raw materials used for soaking are (500%) water, soaking enzyme (0.2%), sodium sulphite (0.1), UFS (0.1%), it is kept undisturbed for 5 hours. 3. Pasting: Take 20% of water, 15% time paste, 20% sodium sulphide the paste is proposed. This paste is applied to we flash side of the leather and this is kept for 4 hours. It is used to remove the hairs to the skin. 4. Liming: Water 300%, lime paste 10%, sodium sulphide5%, welting agent are mixed and kept in paddle for 3 days. 5. Deliming: After 3 days to remove the liming in the skin, deliming in done by adding below substances.
- 200% - 1% - 0.5% 20
To remove facts, this stage is followed. It is done by adding UFS (1%) boran SAF (10%) for 60 minutes and water (300%) for 20m. 7. Pickling: Pickling is to prevent the spoiling of leather water (80%) (15%) salt is added and kept for 10 . In addition to that sodium for mate (0.5%) for 15 and sapphire acid (1%) for60. Pickle to E.I:a) b) c) d) e) f) g) FINAL TO E.I:a) Oiling: It is done by mixing pungam oil with 5% water then it is applied on the leather. MACHINE USED AND MAINTENCE Machines Used: Hair removed machine Padel Machine Fleshing Machine Drum Machine Setting Machine Drain the pickle water Add the sodium sulphide 20 run the drum Add ps (synton) 60 run the drum Add extract 60 run the drum Check the leather body and fiber open Add TRO 60 run the drum Next filing the leather on over night 1 day
MACHINE PURPOSE AND MAINTENCE 1) Hair removed machines Usage: Hair Remove purpose. Maintenance:
Periodically inspection, cleaning, lubrication and check the knife rubber roller and Grep roller. 2) Padal Machine Usage: Short process Maintenance: Periodically inspection, cleaning, lubrication. Check: Blet conveyor pilling.
3. Fleshing Machine Usage: Remove the leather flesh. Maintenance: Check: Periodically inspection, cleaning, lubrication, gandus, the knife. Knife, rubber and uses roller.
4)Drum Machine Usage: Maintenance: Check: Leather Process Stage. Periodically inspection, cleaning, lubrication clear oil, power. Drain the water properly.
5) Setting Machine Usage: Wet-setting of the leather Maintenance: Periodically inspection, cleaning,
Lubrication, knife, grep and rubberdler. Check: Presser cage level keeping.
Personal department:This section deals with the recruitment, selection, training, promotion, fixing wages and bonus of the company. *Recruitment and Selection: In the factory, the employees are recruited through employment exchange for the office level the employee must be a graduate and the selection can be made through direct interview. The factory workers from this local area and a few of them constitute tribal population. Training: Once the recruitment and selection is completed the employees will be given proper training. During the training period salary/wages are provided according to the norms of the management. Promotion: In the factory, promotion is given only to the high officials and not to the workers. It is based on the seniority and merit. Welfare Arrangement: Welfare facilities are provided for the physical, social and moral well being of the employee and needed both inside and outside the sport. The workers perform well in the organization. The welfare arrangement includes materials, canteen, restroom, transport etc.
Shift Time: This factory has three shifts. Time 7.00 A.M 3.00P.M 11.00P.M to to to 3.00 P.M - 1st shift 11.00 P.M - 2nd shift 7.00 A.M - 3rd shift
Diagnostic surveys of needs of learner targets and mapping of capacities Linkages with industrial associations Design and Preparation of course materials and curricula Outreach systems for learning materials Group training of personnel from industrial houses Outsourcing of overseas experts for group training in Indian enterprises on cost cosharing basis Assessment and certification systems for trained personnel Trainer training programs for institutionalized arrangements Mentoring and tutoring arrangements for primary work force Design training and productivity bench marks Management training (on site and groups) Monitoring and evaluation of outputs Third party audit and impact assessment. Preference to weaker section
Experts fees for group training Preparation of learning materials and tools Hardware investments in existing training institutions with learner strength > 20 per batch Learner Mobilization workshops/seminars Demonstration workshops by way of support to consumable materials and salaries for field staff in clusters Duty Travel Mobile training cum production centers for application in rural areas On the job training for workers in factories: sharing of the costs of training institutions by way of tuition fees and course materials Institutional fee for preparation of learning and outreach materials for self instruction IT tools for learning systems Carrying out Impact Assessment of the training conducted under HRD Mission The expenditure on account of capital cost would be allowed only in case of placement link training and would be restricted to maximum of 25% of the project cost. Scheme fund would not be used for civil construction. Implementation and monitoring charges @ 2.5 %
MARKETING
Exporting companies with an f.o.b value of exports upto Rs.15 crore in the preceding year will be eligible for MDA assistance for participation in Export Promotion Council (EPC) led trade delegations / BSMs / Fairs / Exhibitions abroad to explore new markets for export of their specific product(s) and commodities from India in the initial phase. This will be subject to the conditions that exporter is having complete 12 months Membership with the concerned EPC etc. and filing of returns (Monthly Export Data) with concerned EPC / organization regularly. Assistance would be permissible on travel expenses by air, in economy excursion class fare and / or charges of the built up furnished stall in Overseas Trade Fairs / Exhibitions where national participation is organized by the Council. This would however, be subject to an upper ceiling per financial year, as mentioned in the table below: For Export Promotion Council (EPC) led Trade Delegations / BSMs only air fare by Economy Excursion class upto maximum of Rs.70,000/- for Focus areas (a, b, c as per table above) and Rs.1,00,000/- in case of Focus LAC shall be permissible. For participation in Trade Fairs / Exhibitions reimbursement shall be permissible subject to ceilings mentioned in the above table. Assistance shall be permissible to one regular employee/director/partner/proprietor of the company. Assistance would not be available to exporter of foreign nationality or holding foreign passport. Intimation application must be received in the Council with a minimum of 14 days clear advance notice excluding the date of receipt of application in the Council and the date of departure from the country. The Company shall not be under investigation / charged / prosecuted / debarred / black listed under the Foreign Trade Policy of India or any other law relating to export and import business. ITPO / FIEO is also one of the Grantee organizations for disbursing MDA assistance to the Exporters w.e.f. 1st December 2007. Member Exporters who participate in the International Fairs / Exhibitions through ITPO / FIEO can avail MDA from ITPO / FIEO itself. Maximum MDA assistance shall be inclusive of MDA assistance received from all Government bodies / FIEO / EPCs / Commodity Boards / Export Development Authorities / ITPO etc. A maximum of three participations in a particular trade fair / exhibition abroad would be eligible for MDA assistance and exporting companies after availing assistance three times including past cases for a particular fair / exhibition, have to participate in that fair, if any, on self-financing basis. Accommodation, hotel charges etc. would not be permissible for reimbursement from MDA funds to exporters.
Name of the traveler Ticket number Flight No Date of departure from India Sectors / countries visited Class in which traveled Economy excursion class fare for sectors/countries visited
Self certified f.o.b value of export figures during the last three financial years, year wise. Brief report about the activity participated and achievements made.
Self-certified copy of valid SSI registration certificate issued by the concerned Directorate of Industries, if applicable
Balance Sheet for the Year 2010 Current Scenario - April to June 2011 vis-a-vis April to June 2010
Export of Leather & Leather Products (Value in lakhs` Rs) April-June 2010 6789.40 11776.53 2757.13 3960.62 6854.23 432.28 209.28 32779.47
Product Finished Leather Leather Footwear Footwear Components Leather Garments Leather Goods & Glvs Saddlery & Harness Non-Leather Ftwr Total
April-June % Variation 2011 10 Vs 11 7958.91 17.23% 12705.21 7.89% 2314.28 -16.06% 3717.13 -6.15% 7386.37 7.76% 267.28 -38.17% 203.90 -2.57% 34553.08 5.41%
CHAPTER NO: 5
THEORETICAL CONCEPTS AND REAL PRACTICES
IDENTIFICATION OF THE PROBLEM While undergoing on this industrial training the trainee identified some problems in the concern. They are as follows. Lack of automation Wastages are very high Low efficiency of employees Thus even prices go down the agree prices have to be paid This tannery has to face tough competition. SUGGESTIONS TO SOLVE THE PROLEMS Now a day the latest technologies are incorporated day. So the management can go for automation to increase the production capacity. The wastage can be recycled to get by products. To increase the efficiency of the laborers the management has to provide some training program to the workers. The management must a select suitable method for pricing. By increasing the quality of the management can it face the competition effectively.
CONCLUSION The trainee has completed industrial training program in the S.S INTER NATIONAL EXPORT TANNING at Dindigul. From this institutional training, the trainee has gathered practical knowledge about administrative and production activities of the concern. During the period of training the top officers who are working in the concern provided valuable information. The training is of immense help to develop the practical knowledge and it will be of great help of the trainees future career.