MBA os rubco

8/3/2019 MBA os rubco

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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 280crores 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. OBJECTIVE OF THE STUDY

To have a general idea on the basic business operations of anorganization.

To understand the organization structure and various departments.

To study the functioning of various departments.

To do the SWOT analysis of the company.

To do the PESTEL analysis.

To do the PORTERS FIVE FORCE analysis of the company.


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1.3. METHODOLOGY OF STUDY

The data collection methods used for the organization study with the

collection of Primary and Secondary data.

Primary data source

Primary data for the study is obtained from:

Unstructured interviews with managers, departmental heads, & employees.

Direct observation

Secondary Data source

Secondary data are collected from

Annual reports

Official websites

Journals

Books and magazines

1.4. 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 thereby an overall

improvements in the companys performance can be made.

1.5. LIMITATIONS OF THE STUDY

The Major Limitations are:-

1. When the employees are busy, they could not provide much more information.


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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 throughout 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


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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.

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:-

1. 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.

2.Eastern Sunidra

Eastern Mattresses Pvt Ltd. is a part of Keralas renowned business

conglomerate the Eastern Group Of Companies.

3. Rubco


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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.


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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 RUBCO 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 travelled 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.

in 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


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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

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.

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.


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3.1.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 RUBCOs 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:


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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

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


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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

Co-operative Bank.

MILESTONES OF RUBCO

TABLE 3.1

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.


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June 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

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 Malaysia 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 furniture unit

30th October 1999 Foundation stone laid for Rubberized coir foam

Factory at Pampady, Kottayam


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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 into a technical collaboration with

Pancarwarna Management & Consulting service,

Malaysia for Manufacture of casual shoes

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.


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DIVISION OF RUBCO

RUBCO GROUP OF INSTITUTION CO-OPERATIVE OFFICE KANNUR

Chart: 3.1-

Source: Secondary data

RUBCOHUAT

WOOD

Pvt.ltd

RUBCOTYRES

INDIA

Pvt.ltd

Sreekandapuram Latex

Pvt.ltd

KeralaState

Rubber

Co-

operative

Ltd

RUBCOSales

internatioal

Ltd

Rubber

wood

processing

& furniture

manufactur

ing

Manufacturi

ng of Tyres

Rubber

Latex &

ISNR-20

Hawaii chapel

manufacturing

unit

Cycle tyre,

tread rubber

Marketing

RUBCO

products and

casual shoe

manufacturin

g


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3.2.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 Colourful 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


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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.

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 furniture manufacturing plant has a processing

capacity of 40000 Metric tonnes 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 edgegeld 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 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 Crep (PLC).Rubco is in the process of expanding the scope of

operations of this unit in line with market trends.

RUBCO SALES INTERNATIONAL LTDCrafting 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


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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 without 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 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 thet ruck drivers, 1.5 million for light type

passengers tyre and balance would be for two or three wheelers.


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RUBCO CASUAL SHOE PROJECT

Investment: 96 Million

Employment: 600 Persons

Location: Thalassery, Kannur district, Kerala

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

export.

RUBCO - RUBBERIZED COIR MATTRES DIVISION

Caption: Sound technology for sound sleep

RUBCOs Rubberized coir mattresses factory is established in 2001and it

is located at Poothakuzhy, near Pampady, Kottayam district, Kerala. RUBCOs

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

furnitures 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 throughout and an extra cushioning effect. The present market ofRUBCO 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


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sheet, making it very classic. This provides the mattress with uniform density

throughout and an extra cushioning effect.

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.

CORPORATE PUNCHLINE

RUBCO means RUBBER and RUBBER means RUBCO.

VISION AND MISSION

VISION

Vision of RUBCO is to become a global leader in the production of

Natural Rubber products and innovative product development. To achieve this

RUBCO adopts the best and latest process in the production.

MISSION

Our quality philosophy is to provide rubberized coir products of high

quality and reliability at optimum cost, meeting customers implied specifications

and regulatory and statutory requirements by application of pro-active approach to

get things right the first time. We shall continually strive for excellence by up

gradation of skills of workmen through training, continuous up gradation of

facilities and application of state-oftheart technologies

QUALITY POLICY

Our Quality policy is to give enhanced satisfaction to our customers through the

manufacture and supply of rubberized coir mattresses by the use of modernmanufacturing facilities.


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We voluntarily meet the entire product and process related regulatory

requirements.

Quality objectives

Higher capacity utilisation

Higher level of profitability

Lower level of rejections

Lower levels of breakdowns

Least possible customer complaints

Higher level of customer satisfaction

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 relationship 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.


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3.3. ORGANIZATIONAL STRUCTURE OF RUBCO RCM LTD

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 companys 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.


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ORGANISATIONAL STRUCTURE OF RUBCO RCM LTD

Chart: 3.2 -


GENERALMANAGER

Production managerAccounts officerAdministrative cum

personnel officer

Stenographer

Security wing Reception

Junior Clerk Shift in charge

production

Shift in charge lab

Production supervisor Quality supervisor

Workers Workers

Store keeper Purchase officer Accountant

Junior Clerk Junior Clerk Junior Clerk


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3.4. 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


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

HITECH PILLOW TOP

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

thicknes

DOSTH

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

SAFAL

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


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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.

OTHER PRODUCTS FROM FACTORY

Rubberised coir block


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Cushions

Soft touch pillow


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FUNCTIONAL DEPARTMENTS

Departmentalization is the method of arranging activities to facilitate the

accomplishment of organizational objectives. The organizational process ofdetermining how activities are to be grouped is called departments. These

departments show the horizontal differentiation in an organization.

The main departments are:

4.1. 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

4.2. Administration cum personnel department.

4.3. Finance and accounts department.

3.1) Stores department

3.2) Purchase department

4.4. Marketing department.


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4.1.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 mainlyimported 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.

ORGANOGRAM OF PRODUCTION DEPARTMENT

Chart: 4.1-

Source:-Secondary data

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 (Vulcanizing agent)

Zinc oxide

PRODUCTIONMANAGER

PRODUCTDEVELOPMENT

PRODUCTIONFURNISHING

PRODUCTIONMAIN PLANT

ENGINEERINGDEPARTMENT

PRODUCTION PLANNING

CONTROL

LAB AND QUALITYDEPARTMENT


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ZmbT

ZDC

Dispersal F

China clay

B-rods

TDQ

Final Product from the 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 the Department

The skilled worker at this department comes to 33. There are 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:

4.1.1. 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.

Processing of latex (Compounding section)

The raw latex processing consists of two steps:


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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

cyclone in to a feeding conveyor. Fibers are opened further wi th 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.


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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

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.


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ORGANOGRAM OF THE PRODUCTION PLANT

Chart: 4.2-


Production department

Compounding (Latex, mixed withChemical)

Coir Drier

Cenex and Desludged LatexCoir Ropes

Cutting MachinePiling and WeighingPre- Press

Conveyer DrierSheeting PlantUntwisting machine

VulcanizerHot PressSurface spraying

Despatch

Quality ControlSending to furnishing

department

TrimmingInspection


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4.1.2. Production (Furnishing)

Furnishing Department comes under factory manager. At furnishing

department the bare 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.

Labelling, 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

StitchingQuality checking and inspection

Labelling


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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


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Sewing machine

Fabric cutting machine

Sealing machine

Handle stitching machine

Consumables required for furnishing department

Quilted fabrics

PU Forms

Clothes

Threads

Expanded poly ethylene sheets

Labels

Poly ethylene covers

Tape

Labels Fixed on the Mattress

ISI Sticker

Brand Name

MRP sticker

Quality CHEK sticker


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ORGANOGRAM OF FURNISHING DEPARTMENT

Chart: 4.3


PRODUCTION

SUPERVISOR

UN SKILLED

WORKERS

SEMISKILLED

WORKERSSKILLED

WORKERS

HIGHLY

SKILLED

WORKERS

PRODUCTION

SUPERVISORPRODUCTION

SUPERVISOR

SHIFT IN CHARGE

CASUAL

WORKERS

SHIFT IN CHARGE


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4.1.3. PRODUCT DEVELOPMENT

The product development carried out is concerned with the identification

of the most economically feasible method for applying the principles through

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

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

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

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

product modification of the existing company.

4.1.4. PRODUCTION PLANNING AND CONTROL

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

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

required quantity and quality is specified through production planning and the

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

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

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

set of operating guidelines for efficient conversion of raw material, human skillsand other inputs into finished products.

4.1.5. LAB AND QUALITY CONTROL DEPARTMENT

Rubcos 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 organizations quality

management system is influenced by varying needs, particularly the objectives the

products provide to sustain and win products acceptability in the market.


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The functions of Lab & Quality Assurance Department

They are classified into two:

Quality assurance function

Laboratory function

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 contracted material.

Assure quality of packing and sealing.

Assure quality of transport.

Carry out research and development activities with product developmentdepartment.

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-contracted material.

Testing of packing and sealing

Customer relations management.

Here lab works in tandem with marketing department

Vendor analysis.


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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.

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 raw material, various quality

control procedures and test are adopted in the lab.


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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

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


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ORGANOGRAM OF QUALITY ASSURANCE DEPARTMENT

Chart: 4.4-


WorkersWorkers

Quality supervisor

Shift in charge

Production supervisor


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4.1.6.ENGINEERING DEPARTMENT

Hierarchy of Engineering Department

Chart: 4.5-


Functions of Engineering department:

Instrumentation

Electrical maintenance

Maintenance & utility

Boiler unit maintenance

Electrical maintenance

en ineer

Skilled workersElectricians


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4.2ADMINISTRATION CUM PERSONNEL DEPARTMENT

Human Resource Management

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

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

concern. In other words HRM is the people concerned dimension in management.

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

skills, motivating them to higher level performance and ensuring that they

continue to maintain commitment to the org are essential to achieve organizational

objectives. This is true regardless of the type of the 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.


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ORGANOGRAM OF HR DEPARTMENT

Chart: 4.6-


The Functions of Administrative cum Personnel Department

The function of administrative cum personnel department can be divided in to

heads:

Administrative function

Personnel functions

ADMINISTRATIVE CUM

PERSONNEL OFFICER

JUNIOR CLERKSTENOGRAPHER

RECEPTIONSECURITY WINGTIME OFFICER


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ADMINISTRATIVE FUNCTION

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 despatch.

PERSONNEL FUNCTION

Man power planning

The main object of man power planning in Rubco RCM division

Inventoring present work force.

To determine further recruitment level

To forecast further skill requirements of available staff that will serve as a

basis for training and development programmes.

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

Semi skilled workers

Unskilled workers

Induction


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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 compensation

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 behavioural skills.

The training officers of concerned programs include both internal as well as

external training personnel. External agencies include personnel from worker

educational centres 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


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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:

(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

Welfare of Employees

All employees in the organization are covered under the employees 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 urinalsCanteen

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.

INDUSTRIAL RELATIONS


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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 labour 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 extent 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.

WORKS 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.


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4.3. 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 bloodof the business economy. We cannot imagine a business without finance because

it is a central point at all business activities.

Financial Functions

Maintain proper records showing full particulars including quantitative

details and the situations of fixed assets.

Perform all works connected with insurance coverage of fixed asset.

Keeping personnel file of employees relating to salary computation and

annual increment.

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.


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Assisting statutory/ vigilance/ auditors from head quarters.

Make internal and external purchases

ORGANOGRAM OF ACCOUNTS DEPARTMENT

Chart: 4.7-


Functions of Accounts Department

Exercise control over cash

Passing and settlement of all miscellaneous advances

ACCOUNTS OFFICER

STORE

KEEPER

PURCHASE

OFFICER

ACCOUNTANT

JUNIOR

CLERK

JUNIOR

CLERK

JUNIOR

CLERK


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Performing all works connected with insurance of fixed asset

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

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

20032004 - 100 lakh

20042005 - 145 lakh

20052006 - 100 lakh

20062007 - 10 lakh

20072008 - 50 lakh


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4.3.1. STORES DEPARTMENT

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

ORGANOGRAM OF STORES DEPARTMENT

Chart: 4.8-


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.

STORES DEPARTMENT

STORES KEEPER

STORES CLERK

UNSKILLED LABOUR


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Scrap management

Sales return management

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


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4.3.2PURCHASE DEPARTMENT

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

production of mattress. So this department can be said as the backbone of Rubco.The store keeper verifies the materials and if it goes beyond minimum require

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

to the general manger. The general manager then does further action to buy the

required raw materials. The main function of purchasing department is to ensure

uninterrupted flow of production.

ORGANOGRAM OF PURCHASE DEPARTMENT

Chart: 4.9-

Source: secondary data

Purchase Functions:

Source identification:

Source identification involves the identification of suppliers from which

purchase are to be made.

PURCHASE OFFICER

JUNIOR CLERKJUNIOR CLERK


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Source selection:

Source selection involves selecting the best supplier from different

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

Vendor rating:

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

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

department in the case of latex or chemicals

Receipt of material:

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

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

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

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

original will be retained by the receipt store.

PURCHASE PROCEDURE

Indenting -- Indenting Department or Inventory control section placing

the purchase Requisition with the purchase Department.

Enquiry from the surprise.

Preparing a comparative statement

Receiving quotations from suppliers

Approving the supplier.

Placing an order with the supplier.


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Sending the copies of purchase order to (a) Indenting Department (b)

Inventory control section (c) Accounts Department and (d) Stores

department.

Followingup the order.

Receiving the supply from the supplier by the Stores department.

Inspection at the receiving section.

Receiving the Inspection report.

Requesting the Accounts department to make the payment.


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4.4. 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 processby 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 Rubcos entire range of products in the domestic and international

markets. Within a short span of its inception, RSIL could effectively develop a

competent network domestically as well as globally and undertaken the successful

launch of Rubcos 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 theshort 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

Helps to achieve product innovation and modifications by way of

conducting marketing R& D and consumer survey.


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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 within 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.


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ORGANIZATIONAL STRUCTURE OF RSIL

Chart: 4.10-

Source:-Secondary

data

Chairman

M.D

Company secretary

(Administrative officerof RSIL)

G.M

(RSIL)

Cost accountant

(Accounts officer of RSIL)

Marketing sales

Manager (RCM)

Marketing sales

Manager F&P

Marketing sales

Manager - F&C

Advertisement & sales

promotion department

Area Managers

Junior Sales officers

Sales Executives


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NEW MARKETING INITIATIVES

The marketing initiatives other than maker expansion include the function of

new innovative products like

Budget mattress

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. Rubcos 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 MIX

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.

The advertisement methods that RUBCO-RCM follows are given below:

Advertising

The major purpose of advertisement is to promote effectively through

providing information to customers to make them aware about the characteristics

of the product. The main advertising tools are Print ads, radio, television,


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billboard, direct mail, brochures and catalogs, signs, in-store displays, posters,

motion pictures, Web pages, banner ads, and emails

Personal selling

A process of helping and persuading one or more prospects to purchase a

good or service or to act on any idea through the use of an oral presentation

- Sales presentations, sales meetings, sales training and incentive programs

for intermediary salespeople, and samples

Sales promotion

Media and non-media marketing communication are employed for a pre-

determined, limited time to increase consumer demand, stimulate market demand

or improve product availability.

- Coupons, sweepstakes, contests, product samples, rebates, tie-ins, self-

liquidating premiums, trade shows, trade-ins, and exhibitions.

Publicity

planting significant news about the Company or a favourable presentation

of it in the media.

- Newspaper and magazine articles/reports, TVs and radio presentations,

charitable contributions, speeches, issue advertising, and seminars.

Corporate image- The Image of an organization is a crucial point in marketing.
http://en.wikipedia.org/wiki/Personal_sellinghttp://en.wikipedia.org/wiki/Personal_sellinghttp://en.wikipedia.org/wiki/Sales_promotionhttp://en.wikipedia.org/wiki/Sales_promotionhttp://en.wikipedia.org/wiki/Corporate_imagehttp://en.wikipedia.org/wiki/Corporate_imagehttp://en.wikipedia.org/wiki/Corporate_imagehttp://en.wikipedia.org/wiki/Sales_promotionhttp://en.wikipedia.org/wiki/Personal_selling


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ORGANOGRAM OF SALES NETWORK

Chart: 4.11-


RUBCO

(Manufacturer)

DISTRIBUTOS

RETAILERS

CUSTOMERS


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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

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 - Rubberized Coir Mattress planning to be entering into foreign

markets.

The company can enter in to coir /jute biodegradable geo textiles at

relatively low cost.

THREATS

Fluctuating price of raw materials

Lack of Raw material

Increasing competition

Taste of customer varies.

Government policies.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.


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PESTEL ANALYSIS

PESTEL analysis factors are Political, Economic, Sociological,

Technological, Environmental and Legal. The PESTEL analysis examines each

factor to assess what their impact or potential impact on RUBCO-RCM. In this

way, they can prepare strategically for any changes that need to be made in the

organisation or simply to have the awareness of the external market to give them a

competitive edge over other firms in the industry. Examples of each PESTEL

analysis factor are:

Political: what is happening politically with regards to tax policies

employment laws, trade restrictions, tariffs towards the Organisation.

Rubco-rubberized coir mattress division is a public limited company.70-

80 % funds are provided by the state government either by loans or by

shares.(funded by NCDC).also subsidized loans are also allowed by the

state government.


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Economic: Economic factors include economic growth, interest rates,

exchange rates and the inflation rate. These factors have major impacts on

how businesses operate and make decisions. For example, interest rates

affect a firm's cost of capital and therefore to what extent a business grows

and expands. Exchange rates affect the costs of exporting goods and the

supply and price of imported goods in an economy,grows and expands.

Exchange rates affect the costs of exporting goods and the supply and

price of imported goods in an economy.

Sociological: Social factors include the cultural aspects and include health

consciousness, population growth rate, age distribution, career attitudes

and emphasis on safety. Trends in social factors affect the demand for a

company's products and how that company operates. For example, an

ageing population may imply a smaller and less-willing workforce (thus

increasing the cost of labor). Furthermore, companies may change various

management strategies to adapt to these social trends.

Technological: Technological factors include ecological andenvironmental aspects, such as R&D activity, automation, technology

incentives and the rate of technological change. They can determine

barriers to entry, minimum efficient production level and influence

outsourcing decisions. Furthermore, technological shifts can affect costs,

quality, and lead to innovation.

Environmental: Environmental factors include weather, climate, and

climate change, which may especially affect industries such as tourism,

farming, and insurance. Furthermore, growing awareness to climate

change is affecting how companies operate and the products they offerit

is both creating new markets and diminishing or destroying existing ones.

Legal: changes to legislation. This may impact employment, access to

materials, resources, imports/ exports, taxation etc.


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PORTERS FIVE FORCES ANALYSIS OF RUBCO-RCM

DIVISION

Porter's 5 Forces analysis focuses on the external factors of the industry. The

original competitive forces model, as proposed by Porter, identified five forces

which would impact on an organizations behaviour in a competitive market.

These include the following:

The rivalry between existing sellers in the market.

The power exerted by the customers in the market.

The impact of the suppliers on the sellers.

The potential threat of new sellers entering the market.

The threat of substitute products becoming available in the market


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The five forces in RUBCO-RCM:-

1. RIVALRY AMONG EXISTING COMPETITORS

For every manufacturing firm their main threat is the competitors .likewise

RUBCO-RCM also have a list of competitors in the market.

The main competitors of the company are:-

Kurlon

Sunidra

Duroflex

Sleepwell

Centary mattresses

sulfex

When we consider the south Indian market rank first, while we consider north

India Rubco enjoy the third position. The brand which comes first is duroflex.

Centary mattress is the competitors in the south Indian market.

MAJOR GLOBAL COMPETITORS

Tempur-pedic

Sealy

Serta

Simmons

Spring Air

We believe that many of our competitors, including the three largest innerspring

mattress (Sealy, Serta, Simmons) manufacturers and Tempur-Pedic, have greater

financial, marketing and manufacturing resources and better brand name

recognition than we do and sell products through broader and more established

distribution channels. This leads to the complexity in fixation of price especially

in global markets.


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There is the possibility of the supplier integrating forwards in order to obtain

higher prices and margins. This threat is especially high when:-

1. The buying industry has a higher profitability than the supplying industry,

2. Forward integration provides economies of scale for the supplier

In such situations, the buying industry often faces a high pressure on margins from

their suppliers. The relationship to powerful suppliers can potentially reduce

strategic options for the organization.

RUBCO-RCM has a lot of suppliers for mattress (the main product). The

company is manufacturing different kinds of mattress in different varieties. Their

products are highly durable and its price is affordable to all classes of people. So

they are having a lot of options and hence suppliers are having very high

bargaining power. As the profitability of the company increases bargaining power

of the suppliers also increases.

5. BARGAINING POWER OF CUSTOMERS

Buyers are the people / organisations who create demand in an

industry.The bargaining power of buyers is greater in RUBCO, because

1. There are many substitute product sellers.

2. The industry is not a key supplying group for buyers

3. Switching to an alternative product is relatively simple.

4. Customers have low margins and are price sensitive.

5. Customers could produce primitive version of product .

6. The product is not of strategical importance for the customer,

7. The customer knows about the production costs of the product

8. There is the possibility for the customer integrating backwards.


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FINDINGS, CONCLUSIONS & SUGGESTIONS

7.1. 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 Trade 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

Labour 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


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7.2. CONCLUSION

The internship study is helped to make a valuable conclusion through the

analysis of different functional departments of the Rubco. The study also helpedto understand the relationship between the employees and the Top management.

Along with the strength, the Threats and Weakness of the company are also added

in the study In order to reduce the weakness and threats certain suggestions are also put

forward. It helps the organization to become more competent.

The competitive advantage of the organization is listed as below:

Professional Management

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.

7.3. SUGGESTIONS

Considerably within a short period of time after 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,


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wastages and rejections are brought down. 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:

RUBCO has to adopt a strategy that would result in lowering the

production and distribution cost than that of its competitor to win the

market.

The company has to strengthen their supply chain in other states in order

to tap the market.

If the customers will be able make the orders online, the company will be

able to increase the sales, mainly abroad.

If the organization is able to connect all its branches and departments with

Management Information System(MIS), it enable the company to reduce

the delay in sharing information.

By making more effective advertisement and through other promotional

activities, the company will be able to capture new customers and there by

increase the market share.

The company has to engage in production of variety products. It has to add

new product li

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