2. GENESIS
Date of registration : 8 th October
1981.
Situated at Vazhani.
The area of operation of the mills shall
extend to the whole of Kerala state.
3. OBJECTIVES :
To carry on the business of cotton and
staple fibre/polyester viscose blended
spinning.
For the purpose of attaining the aforesaid
objects, it shall be competent for the mills.
(i) To Purchase ,take on lease or in
exchange or otherwise acquire and
immovable or movable property and to
construct, erect, maintain or alter any
buildings, installations of machinery or
other works necessary or convenient for
the purpose of the mills.
4. (ii )To purchase or otherwise acquire and deal in
cotton staple fibre and other raw materials and stores
for the purpose of manufacturing ,processing ,finishing
and marketing cotton yarns and staple fibre yarns.
(iii) To raise funds in such manner as the board of
directors of the mills shall think fit for carrying on the
business of the mill.
(iv)To draw , accept, make and to endorse, discount,
negotiate and deal otherwise in promissory notes, bills
of exchange and other negotiable or transferable
instruments or securities in the course of the business
of the mills.
5. (v) To invest any money of the mill in such investment
or securities as maybe thought expedient by the board
of directors of the mill.
(vi) To create any reserve fund, depreciation fund or
any other special funds whether for depreciation or for
replacement or improvement of any property of the
Mills or for any other purpose required by law or
conducive to the interest of the Mills.
(vii)To acquire and take over the whole or any part of
the business, good-will, property, rights, privileges and
liabilities of any business which the mills is authorised
to carry on.
.
6. (viii) To provide for the welfare of the person employed
or formerly employed by the mills.
(ix) To subscribe to or otherwise aid
benevolent, charitable, national or other institution
or objects of a public character or which have any
claims to support or aid by the mills by reason of the
locality or nature of its operation.
(x)To pay all the preliminary expenses of any kind
incidental to the registration and establishment of
the mills out of the funds of the mills.
7. (xi) To pay for any property or rights acquired by the
mills either in cash or fully or partly paid-up shares
(xii) To amalgamate with any cooperative institutions
having objects altogether or in part similar to those of
the mills.
(xiii) To sell or dispose of the property or assets of the
mills or any part thereof in such manner and for such
consideration as the board of directors may think fit and
to improve , manage , develop or turn to account or
otherwise deal with all or any part of the property and
rights of the mills.
8. MEMBERSHIP :
Membership of the mill is open to :
Primary Weavers Cooperative Societies and the
Kerala State Handloom Weavers Cooperative
Society.
Other registered Cooperative societies.
Bodies corporate other than cooperative
societies.
Government (State & Central).
KSIDC and NCDC.
An entrance fee of Rs 50 shall be payable by
each member on admission irrespective of the
number of shares taken.
9. Ta b l e 1 . 1 S t a t u s o f m e m b e r s h i p i n 2 0 1 0 - 11
Sl. no List of Share holders No. of Share Shares Total Amount
holders purchased
1 Weavers coop. 38 167 167000
societies
2 Societies other than 205 2111 2205590
weavers coop.
societies
3 Local bodies 46 257 289000
4 Govt. of Kerala 1 22848 114240000
Total 290 25383 116901590
11. SHARE CAPITAL :
The authorised share capital of the mills
shall be Rs. 15,00,00,000 /divided into
30,000 shares of Rs 5,000 each. The
share capital of the mill are mainly by
coop societies and almost 99.5% by
Govt. of Kerala.
12. Ta b l e 1 . 2 S t a t u s o f s h a r e c a p i t a l f r o m 2 0 0 1 - 11
Year Govt. Members
Suspense Total Growth Index
2001-02 114240000 2533000 159890 116932890 100
2002-03 114240000 2533000 159890 116932890 100
2003-04 114240000 2528000 159490 116927490 99.9
2004-05 114240000 2528000 159490 116927490 99.9
2005-06 114240000 2532000 155090 116927090 99.9
2006-07 114240000 2532000 155090 116927090 99.9
2007-08 114240000 2532000 155090 116927090 99.9
2008-09 114240000 2532000 155090 116927090 99.9
2009-10 114240000 2661590 25500 116927090 99.9
2010-11 114240000 2661590 25500 116927090 99.9
13. S t a t u s o f s h a r e c a p i t a l f r o m 2 0 0 1 - 11
14000000
12000000
10000000
80000000
GOVT.
MEMBERS
60000000
SUSPENSE
TOTAL
40000000
20000000
0
14. BORROWINGS:
The mill can borrow money by means of
loans and advances from any financing
agency with the approval of the
Registrar, but the total borrowings must not
exceed 25 times its paid up share capital
and reserve fund.
The State Govt. and Trichur Cooperative
Bank are the main sources of borrowings
for the mill.
15. Ta b l e 1 . 3 Status of borrowings from 2 0 0 1 - 11
Year Sources Total Growth Index
Govt. OD with TCB Secured
2001-02 26410324 25928968.84 94780502 147119794.8 100
2002-03 26410324 25436608.84 105230858 157077790.8 106.7
2003-04 26410324 27807982.84 114630858 168849164.8 114.7
2004-05 26410324 - 114885658 141295982 96.04
2005-06 26410324 36194474.84 114230858 176835656.8 120.2
2006-07 69793324 42037517.84 114663502 226494343.8 153.9
2007-08 69793324 47554465.84 114663502 232016291.8 157.7
2008-09 69793324 53919522 114663502 238376348 162.02
2009-10 69793324 - 69793324 139586648 94.8
2010-11 69852324 - 69852324 139704648 94.9
16. S t a t u s o f b o r r o w i n g s f r o m 2 0 0 1 - 11
30000000
25000000
20000000
GOVT.
15000000
OD with TCB
SECURED
10000000 TOTAL
50000000
0
17. BUSINESS
OPERATIONS :
The major function of the mill is the
processing of raw cotton for which it
has 3 plants –Preparatory
section, Spinning section and the
Winding / Packing section .
The capacity of a mill is expressed in
the form of spindles , which is a device
to spin fibres into thread .
Mainly due to the scarcity of cotton ,the
mill is able to use only 75% of its
installed capacity ie 25104 spindles .
18. Ta b l e 1 . 4 P o s i t i o n o f p r o d u c t i o n a n d s a l e s f r o m 2 0 0 6 - 11
Year Production (in kg) Sales (in rs)
2006-07 779760 124050290
2007-08 694632 102382280
2008-09 529860 81636628
2009-10 745621 122027732
2010-11 746766 166782058
21. FUNCTIONAL
DEPARTMENTS :
The thrissur cooperative spinning mill is
under the direct control of the government
of Kerala.
The major functional departments are
Purchase department
Production department
Marketing department
Financial department
Stores department
Human resource department
22. PURCHASE
DEPARTMENT :
All the manufacturing concern must have a
well defined purchase department. The
quality of the product is based on the
efficiency of this dept. Their main function
is to purchase raw materials from different
sources.
Quality of cotton is determined by its
breaking length , strength, micron
air, thrash %, etc.The firm purchases cotton
by giving quotations. Among the various
options available ,the supplier with the
lowest quotation is accepted. Purchased
cotton is then stored in godowns.
23. This mill uses 100% of its cotton for
spinning. There are 3 types of count – 60
combed, 62 carded, 80 carded yarn. The
mill purchases cotton (in bales) on the
basis of centralised cotton purchase
system. Major supplier of cotton are
Tamil Nadu, Andhra Pradesh, Karnataka
& Maharashtra.
24. PRODUCTION
DEPARTMENT :
Production is the process by which
inputs are converted into outputs. All
production processes are carried out by
this dept which is headed by mills
manager.
Production dept is controlled by
supervisor & foreman under mills
manager.
The capacity of the mill is now 25000
spindles and the cotton varieties are
MCU5, DCH32, LK, MECH, Suvin, etc.
25. PROCESSING OF COTTON
Mixing – A group of workers shuffle
the raw material from different sources
and keep it as a layer ie one over the
other. Then it is divided in a vertical
order so that mixing will occur
uniformly.
26.
27. Blow room – Raw cotton is fed into an
automatic feeding system. Blow room process
opens the compressor bale of cotton and
removes 70-75% of waste present in it. Clean
cotton follows the system of horizontal
movement and is stored by means of vertical
compression pattern. Waste is sent to gutter
and sand and seed particles are removed
there.
28.
29. Carding – Cleaned cotton is converted to
silver form. Carding results in fibre to fibre
separation and removal of trash from the lap.
Carding process is known to be the heart of
spinning. Separation of long and short fibres
is done and the best quality long fibres are
used.
30.
31. Comber - Combing machine is used to
make fibres uniform and also remove
the short fibres in the lap of ribbon.
32.
33. Drawing - Drawing is the process of
progressively passing or sliding fibres by
each other, causing a reduction in the size
of the strand, but not breaking its
continuity. The output of both carded yarn
& combed yarn processes are taken to the
drawing dept. The functions of draw frame
is doubling, lighting & drafting. In this
process, combed / carded silver is
converted into draw frame silver.
34. Simplex machine – Drafting, twisting
and bobbing coordination is done in this
dept. on the simplex machine, the draw
frame silver is given sufficient twist in
order to increase the strength of the yarn.
The product from the simplex machine is
called rowing yarn which is wound in
plastic and sodden bobbin is called flyer.
35.
36. Spinning – Input here is the flyer from
the Simplex machine .The final product
yarn is produced in this process. For
converting the raw yarn to yarn, the
ring frames are used which gives
adequate twist.
37.
38. Winding – Yarn is wound by automatic
machine on cops. Cops are plastic moulds
in which yarn is wound. They are more
costly than cones. So the yarn from the
spinning process is wound on a cone by
using a winding machine.
39.
40. Packing – The products from the
winding are packed and dispatched
which is done in packing and dispatch
dept. Each bag contains 40 cones with
1.25 kg for each one.
44. MARKETING
DEPARTMENT
Bombay yarn market & local power
looms are the market for yarn
produced. Depot keepers does the sale
of the yarn with the help of agents.
Fixing the market on trend is not fixed
, it fluctuates up and down. The
quantity is fixed at the YPC meeting.
Head office will then approve the rate &
sends a fax message to the mills by
specifying the rate and quantity.
45. FINANCIAL
DEPARTMENT
The Thrissur cooperative spinning mill
have a financial dept. headed by a
finance manager. These managers
deals with working capital
requirement, capital generating &
efficient use of all the resources. This
dept. plays a vital role since finance is
essential for all the activities like
purchasing raw
materials, machineries, labour
wages, etc.
46. STORES
DEPARTMENT
This mill maintains 3 types of stores
.they are - raw material store
, maintenance store & finished goods
store. Stores dept. uses various
techniques like VED analysis, ABC
analysis to make better control over
stores.
47. HUMAN RESOURCE
DEPARTMENT
In this mill the employees are classified as
Permanent employees - 225
Casual workers - 59
Badi workers – 59 temporary
Trainees – 20 workers
Securities – 12
Officers – 24
Mill is working 362 days /year & 24 hours/
day in 3 shifts
48. MANAGEMENT:
The management of the mill shall vest in a board of
directors consisting of the following 15 members
:-
Director of handlooms.
Managing director.
General manager, Kerala State Textile
Corporation, Thiruvananthapuram.
The president of the Cooperative Central Bank
of the district in which the mill is situated.
Branch managers of the financing institutions /
Banks from which the mill has borrowed wherein
the terms of borrowing require such nomination.
(3)
49. Representative of the other affiliated primary
weavers cooperative society .(1)
Representatives of other affiliated
cooperative societies elected. (5)
The additional secretary to Govt. / Joint
Secretary to Govt. in charge of textiles.
Representative elected by the local bodies
and the bodies corporate other than
cooperative societies from among
themselves
50. COMPETITORS :
As India has a wide range of cotton
industry, Kerala having favourable conditions
for industries, they also have competitors in
this field.
Their main competitors are :
Bagavathy Cotton Mills , Alagappa Bagar
(NTC)
Kerala Lakshmi Mills , Pullazhi
51. SWOT ANALYSIS
STRENGTH
Management is well expertise in all depts.
Highly skilled workforce.
Only cooperative spinning mill in Thrissur.
Sufficient availability of land and building.
Better employer- employee relationship.
Proper working conditions.
Continuous work flow.
52. WEAKNESS
Inventory management is highly required.
Shortage of manpower.
Transportation cost is high .
Power is highly required.
Possibility of loss is high since sale is done
through consignment agents.
53. OPPORTUNITY
Technology advancement in machines.
Increased rate of demand for yarn .
New market arose due to liberalisation and
globalisation.
Possibility of increasing the standard of
production.
Working capital can be used more.
54. THREATS
Lack of advertisement.
Possibility of machine breakdown is high.
Demand is not much high.
Lack of promotional activities from the part of
govt.
Quick economic changes.
55. FUTURE PLANS
Production of quality products at low
cost.
Provide high quality and variety of yarn
to customers.
56. B a l a n c e s h e e t a s o n 3 1 s t m a r c h 2 0 11
LIABILITIES AMOUNT ASSETS AMOUNT
Share capital 116927090 Fixed asset 2956395.18
Reserve and surplus 7436872 Investments 555000
Secured loans 69852324 Current assets 23796400.22
Unsecured loans - Loans and advances 10928948.4
Current liability 112079803.2 Profit and loss a/c 241451787.39
306296089.2
306296089.2
58. CONCLUSION :
Thus the Trichur Co-operative Spinning Mill
is able to give employment to a no. of
persons and supply yarn to almost the whole
of South India even though it has been
suffering from losses for so many years
except for a profit in 2009. The main problem
faced by this mill is the lack of raw material
and funds due to which it is not able to
compete with private mills. We hope that this
mill will continue to provide yarn and enjoy
profit for the coming years .
