A PROJECT REPORT ON

INVENTORY AS A SUPPLY CHAIN DRIVER IN

RESPECT TO KITEX

Dissertation submitted in partial fulfilment of the

requirements for

The award of the degree of

MASTER OF BUSINESS ADMINISTRATION OF

AMITY UNIVERSITY

By

ARUN THOMAS

Under the guidance of

PROF. SHAMSI SUKUMARAN

AMITY GLOBAL BUSINESS SCHOOL KOCHI

1
 DEPARTMENT OF MANAGEMENT STUDIES

BATCH: 2015 - 2017

AMITY GLOBAL BUSINESS SCHOOL KOCHI

CERTIFICATE

This is to certify that the project report entitled inventory as

a supply chain driver in respect to kitex is a bonafide
record submitted by Mr. Arun Thomas, in partial fulfilment
of the requirement for the award of the degree of master of
business administration, under my guidance during the
academic years 2015-2017.

2
Date: Biju
Vithayathil

Director

AMITY GLOBAL BUSINESS SCHOOL KOCHI

CERTIFICATE

3
This is to certify that the project report entitled. Inventory
as a supply chain driver in respect to kitex has been
successfully completed by Mr.Arun Thomas , in partial
fulfilment of the requirements for the award of degree of
master of business administration, under my guidance during
the academic year 2015-2017

Date: Prof.SHAMSI
SUKUMARAN

COMPANY CERTIFICATE

4
 DECLARATION

I, Arun Thomas. , hereby declare that this project entitled

inventory as a supply chain driver in respect to kitex is
my original work, I further declare that this report is based on

5
the information collected by me and has not previously been
submitted to any other university or academic body.

Date : Arun Thomas

ACKNOWLEDGEMENT

6
This project work has been of immense help to me every
sense. I would like to express my whole hearted gratitude to
all those people who helped me directly or indirectly with this
project.

First, i express my sincere gratitude to Dr. Biju Vithayathil,

director of AGBS KOCHI, for giving me the necessary
approvals for carrying out this project and for his support
throughout this project.

I acknowledge the valuable and timely advice of my project

guide, prof. Shamsi sukumaran, faculty of AGBS, for guiding,
motivating and inspiring me to complete this project
successfully.

I express my deep sense of gratitude to my guide mr. K.C

Pillaii , general manager of kitex ltd kizakambalam for
allowing me to undertake the study. I am also thankful for her
constant support, encouragement and for the patience she
showed in guiding me in this project study.

Above all, I thank almighty God for helping me to complete

the project successfully.

7
 TABLE OF CONTENTS

CHAPTE NAME PAGE NO

R

1 INTRODUCTION 1

2 RESEARCH METHODOLOGIES 3

3 REVIEW OF LITERATURE 8

4 INDUSTRY PROFILE 13

COMPANY PROFILE

5 DATA ANALYIS 43

6 FINDINGS & SUGGESTIONS 68

8
 71
CONCLUSION

CHAPTER 1

9
1. INTRODUCTION

The study conducted in KITEX Ltd. was about the Inventory as a supply chain
driver. The term inventory or stock refers to the goods and materials that
a business holds for the ultimate purpose of resale (or repair). Inventory
serves a useful purpose in the supply chain. That said, firms can help
minimize the need for inventory by carefully managing those factors
that drive inventory levels up. It consists of all raw materials; work in
process, and finished goods within a supply chain. The performance of a
supply chain (responsiveness and efficiency ) is determined by decisions
in the areas of inventory, transportation , facilities and information,
hence these four are identified as drivers of supply chain performance

Kitex Ltd. is a part of the renowned Anna-Kitex group of companies,

founded by the legendary Late Shri M. C. Jacob, Kitex Garments Ltd is
the largest employer in private sector in the state of Kerala. It is located
near Kochi and has easy access to sea and air ports. The company was
established in 1992. With unmatched global connections, this company
caters to prominent and renowned conglomerates in USA and Europe.
The company currently employs over 7000 people at its facility, and has

10
been a business provider to many satellite businesses in the state.
Having started with INR 1.8 Crores turnover in the year 1995-96, the
company has now grown to a turnover of over INR 524 Crores in 2014-
15. The company is currently the second largest producer of children's
apparel in the world, and is now in the process of setting up operations
in the United States of America.

This study is to know the inventory as a supply chain driver at KITEX

and its importance in the functional areas at KITEX. The duration of the
study was 45 days from 16st MAY 2016 to 15th July 2016.

11
 CHAPTER - 2

2..1 STATEMENT OF THE PROBLEM

The company has a large amount of inventory . organizations with high

levels of finished goods inventory can offer a wide range of products
and make quick delivery from their backyards to the customers , there
has been a question for management about the effectiveness of inventory
management procedures to the major functional areas of the
organization .

12
2.2 SIGNIFICANCE OF THE STUDY

The study will show the inventory management system of the

company
It enables employees of inventory management evaluate
themselves
It will indicate the strength and weakness of the firm.

2. 3 SCOPE OF THE STUDY

The study gives an insight into the inventory flow procedure

prevailing in a company mainly in kitex ltd.

It will help the company to know about the various levels of

inventory that the company has to concentrate.

The study can also be further compared with the industry behavior,

in terms of their cost ascertainment , cost accounting and their cost

control method

2.4 OBJECTIVES

13
 Explain the role of inventory to major functional areas in the

company
To study the inventory control techniques of the company
Understand the major reasons for carrying inventory.

14
2.5 RESEARCH METHODOLOGY

Direct interview with general manager

Data collection through questionnaire
Physical analysis

PERIOD OF STUDY

Period of the study was 45 days from 16st may 2016 to 15th July 2016.

SOURCES OF DATA

Data can be classified into:

a) Primary Data

b) Secondary Data

Primary Data

Primary data are those which are collected afresh and for the first time.
Formal interviews were conducted with GM and executives of the
company and data were collected by interacting with them. Structured
questionnaires were used to collect data from the executives and staffs
of Kitex Ltd Ernakulum

Secondary Data

Secondary data are those, which have already been collected by

someone else and which have already been passed through the statistical
process. Secondary data for the study was obtained from the website of

15
KITEX, company journals, purchase order books, supplier details,
magazines, newspapers, brochures etc.

SAMPLE DESIGN

The precision and accuracy of the survey results are affected by the

manner to which the sample has been chosen.

Sample
A part of population, which is provided by some process on other,
usually by deliberate selection with the object of investigating the
properties of the parent population set.

SAMPLE SIZE
Sample size taken is 40 employees.

TOOLS OF DATA COLLECION

Questionnaire
Interview

STATISTICAL ANALYSIS
Statistical tools applied are,
Percentage Analysis
Karl Pearsons correlation
Weighted average

2.6 LIMITATIONS

16
 Findings based on this study cannot be used in other

organizations.
There are chances of misrepresentation responses.
The biased view of the respondent is another cause of the

limitation.

CHAPTER - 3

17
3. REVIEW OF LITERATURE
Joseph G Monks(2009)1 defines Operations Management as the
process whereby resources, flowing within a defined system, are
combined and transformed by a controlled manner to add value in
accordance with policies communicated by management

Everett E. Adam &Ronald J. Ebert (2009)2defines as An operating

system is the part of an organization that produces the organizations
physical goods and services.

Ray Wild (2001)3 defines operations system as a configuration of

resources combined for the provision of goods or services

Donald JB (2000)4 owe sox, Logistics is concerned with getting

products and services where they are needed and when they are desired

Ronald H Ballot(2002)5 "Logistics controls the time and place values in

products, mainly through transportation information flows and
inventories.

18
Davis & Heineken(2013)6,SCM is basically a long-term relationship
between a firm and its suppliers, and the way a firm works with its
suppliers, and therefore addresses the entire supply chain in terms of
inbound and outbound logistics

John. T Mentzet; William De whitetail(2004)7Supply chain

management is defined as the systematic ,strategic coordination of the
traditional business functions and the tactics across these business
functions within a particular company and across business within the
supply chain for the purposes of improving the long term performance
of the individual companies and the supply chain as a whole.

Sunil Chopra(2009)8A Supply chain consists of all parties involved,

directly or indirectly in, fulfilling a customer request. The supply chain
includes not only the manufacturer and suppliers but also transporters
warehouses retailers and even customers themselves.

Sunil Chopra(2009)9A supply chain strategy determines the nature of

procurement of raw materials transportation of materials to and from the
company, manufacture of the product or operations to provide the
service and distribution of the production the customer along with any
follow up service and a specification of whether these processes will be
performed in-house or outsourced".

Waters (2000)10 In lean supply chain thinking, inventory is generated

as one of the seven wastes and, therefore, it is considered as
something to be reduced as much as possible.

Womack and Jones(2004)11 Similarly, in agile supply chains, inventory

is held at few echelons, with goods passing through supply chains

19
quickly so that companies can respond rapidly to exploit changes in
market.

Christopher and Towill (2000)12There have been various supply chain

taxonomies based on these concept and most stress the need for
inventory reduction within each of the classifications.

Biju kr. Thapalia et al.,(2009)13covered the geographical risks for

inventory strategies and their impact on supply chain with the help of a
case study.

F.T.S chan and H.K. chan,(2000)14 proposed an information sharing in

multi echelon supply to convey exact information regarding inventory to
the upstream level and simulation approach is used to test the
effectiveness of proposed work. However, there has been some concern
about the true costs of inventory and whether companies do in fact
organize these fully.

Christopher, (1992)15highlighted costs such as storage, obsolescence,

damage, deterioration, shrinkage, insurance and management costs, as
well the more traditional cost of capital, with an incorrect assessment of
inventory costs, there is the danger that companies may make inaccurate
supply chain trade-offs in this respect and, therefore hold too much
inventory.

Hugo, Bandenhorst-weiss and Van Rooyen (1992)16, The aim of

inventory management is to hold inventories at the lowest possible cost,
given the objectives to ensure uninterrupted supplies for ongoing
operations. When making decision on inventory, management has t find
a compromise between the different cost components, such as the cost of
supplying inventory, inventory holding costs and costs resulting from
insufficient inventories.

20
Huiskonen (1999)17The classification of inventory is an essential part
of the inventory management systems, in order to:
i) Determine the adequate level of managerial attention.
ii) Allow the choice of demand forecasting and inventory
control methods.
iii) Establish different performance goals at the inventory
turnover and service levels between categories.
However, most of the surveyed works use the classification of parts
only to choose the demand forecasting model instead of the inventory
control method.

Huiskonen, J. (1991)18 Maintenance spare parts logistics: Special

characteristics and strategic choices. International Journal of
Production Economics,71,pp.125-
133.http://www.ijeronline.com/documents/volumes/Vol%202%20issue
%205/ijer20110205SO(13).pdf

Kotler(2000)19 states that "Inventory Management refers to all the

activities involved in developing and managing the inventory levels of
raw materials. Semi-finished materials (work in-progress) and finished
goods so that adequate supplies are available and the costs of over or
under stocks are low".

Sallemi (1997)20Inventory is essential to organization for production

activities, maintenance of plant and machinery as well as other
operational requirements. This results in tying up of money or capital
which could have been used more productively. The management of an
organization becomes very concerned in inventory stocks are high.
Inventory is part of the company assets and is always reflected in the
companys balance sheet. This therefore calls for its close scrutiny by
management.

21
Weiss(2004)21 Inventories make possible the smooth and efficient
operation of manufacturing organizations by decoupling individual
segments of the total operation Wood,

Dobler (2000)22 argues that well and efficiently controlled inventories

can contribute to the effective operation of the firm and hence the firms
overall profit. Proper management of inventory plays a big role in
enabling other operations such as production, purchases, sales,
marketing and financial management to be carried out smoothly. Basic
challenge however is to determine the inventory level that works most
effectively with the operating system or system existing within the
organization management

L M Prasad(2013)23, Inventory consists of raw materials, work in

process (semi finished goods), and finished products. Inventory is kept
at a particular level to meet future needs of the organization. Inventory
control tries to specify the optimum level of inventory that an
organization should keep. However, this optimum level is dynamic
concept because its level varies from organization to organization; the
major determining factor being nature of demand for the product,
length of processing cycle, degree of ease in procuring raw materials,
effect of seasonal variation on prices, and so on.
.
Morris (1995)24 stressed that inventory management in its broadest
perspective is to keep the most economical amount of one kind of asset
in order to facilitate an increase in the total value of all assets of the
organization human and material resources.

Rosenblatt (1977)25 says: The cost of maintaining inventory is

included in the final price paid by the consumer. Good in inventory
represents a cost to their owner. The manufacturer has the expense of

22
materials and labor. The wholesaler also funds tied up. Therefore,
the basic goal of the researchers is to maintain a level of inventory
that will provide optimum stock at lowest cost.

CHAPTER 4

23
4.1 INDUSTRY PROFILE

New innovations in clothing production, manufacture and design came

during the industrial revolution- these new wheels, looms and spinning
processes changed clothing manufacturer for ever. There were various
stages-from a historical perspective were the textile industry evolved
from being a domestic small scale industry, to the status of supremacy it
currently holds. The cottage stage was the first stage in its history where
textile was produced on a domestic basis.

Clothing manufactured during the industrial revolution formed a big part

of the exports made by Great Britain they accounted for almost 25% of
the total exports made at that time doubling in the period between 1701
& 1770. The center of the cotton industry in great Britain was
Lancashire-and the amount export from 1701-1770 had grown 10 times.
However, wool was the major export item at this point of time. In the
industrial revolution era, a lot of efforts was made to increase the speed
of the production through invention such as the flying shuttle in 1773,

24
the flyer and bobbin system, and the roller spinning machine by John
Wyatt and Lewis Paul in 1738.

During this period cloth was made from materials including wool, flax
and cotton. The material depended on the area were the cloth was being
produced, and time they were being made. In the later half of the
medieval period in the northern part of Europe, cotton comes to be
regarded as imported fiber. During the later phase of the 16th century
cotton was grown in the warmer climes of America and Asia.

During the industrial revolution, new machines such as spinning wheels

and hand looms came into the picture; making clothing material quickly
become an organized industry as compared to the domesticated activity
it had been associated with before. A number of new innovations led to
the industrialization of the textile industry in Great Britain. In the initial
phases textile mills were located in and around the reverse since they
were powered by water wheels. After the stream engine was invented
the dependence on the reverse created to a great extent.

In the later phase of the 20th century, shuttles that were used in the
textile industry were developed and become faster and thus more
efficient. This led to the replacement of older shuttles with the new ones.
Today, modern techniques electronics and innovations have led toa
competitive, low priced textile industry offering almost any type of cloth
or design a person could design. With its low cost labour base, china has
to come to dominate global textile industry.

GLOBAL SCENARIO

25
The Textile& Clothing trade in the global market is fast changing with
the scaling up of uses of textiles in diverse areas. Asian countries
including India play a dominant role in the international trade of the
global market. China has the major share in textile and clothing trade in
the international market etc. Both Bangladesh and Hong Kong have a
significant share. However, India is still on the back seat. It is reported
that Asian counties export most of textile and apparel to Europe and
North America and USA etc. Asian countries are gaining in textile trade
due to lower costs compared to African, European and South American
countries. As per the Global Textile and Apparel Industry: Vision 2015,
World textile and apparel trade is expected to reachUS$805bn by 2015
from US$650bn in 2010. At present few countries like Bangladesh,
Thailand, Cambodia, Sri Lanka, Pakistan contribute major share in for
earnings of their country from Textile and Clothing trade, though their
share in the world market is not very significant.

In the year 1995, WTO has renewed its MFA and adopted Agreement on
Textiles and Clothing (ATC), which states that all quotas on textile and
clothing will be removed among WTO member countries. Despite the
early on set the trend towards globalization in the global textile and
clothing industry, international trade in the sector was and still is heavily
regulated. For instance, up to the end of 2004, the WTO Agreement on
Textiles and Clothing (ATC), which superseded the Multi fiber
Arrangement (MFA), was in force. Both limited the global trade in
textiles and clothing by imposing quotas. Although now these have been
abolished. However the Level of exports in textiles from developing
countries is increasing even if in the presence of high tariffs and
quantitative restrictions by economically developed countries. More
over the role of Multi-functional textiles, eco textiles andcustomized
textiles are considered as the fixture of the textile industry.

26
INDIA TEXTILE INDUSTRY
Textile industry in India is the second largest employment generators
alter agriculture, It holds the significant status in Indian asset provide. It
is the one of the earliest industry come into existence in India and it
account for more than 50% of total exports. It was predominantly
unorganized industry even a few years back, but the scenario started
changing after the economic liberalization of Indian economy in 1991.
The opening up of economy gave the much-needed thrust to the Indian
textile industry, which has now successfully become one of the largest in
the world.

India textile industry largely depends upon the textile manufacturing and
export. It also plays a major role in the economy of the country. India
earns about 27% of its total foreign exchange through textile exports.
Further, the textile industry of India also contributes nearly 14% of the
total industrial production of the country. It also contributes around 3%
to the GDP of the country. India textile industry is also the largest in the
country in terms of employment generation. It not only generates jobs in
its own industry, but also opens up scopes for the other ancillary sectors.
India textile industry currently generates employment to more than 35
million people. It is also estimated that, the industry will generate 12
million new jobs by the year 2010.

Indian textile industry can be divided into several segments, some of

which can be listed as below:
Jute and Coir

Hand-crafted Textiles

27
 Readymade Garments

Woolen Textiles

Silk Textiles

Cotton Textiles

India textile industry is one of the leading in the world. Currently it is

estimated to be around USS 52 billion and is also projected to be around
US$ 115 billion by the year 2012. The current domestic market of textile
in India is expected to be increased to US$ 60 billion by 2012 from the
current US$ 34.6 billion. The textile export of the country was around
US$ 19.14 billion in 2006-07, which saw a stiff rise to reach US$ 22.13
in 2007-08. The share of exports is also expected to increase from 4% to
7% within 2012.

STRENGTHS
Very low import content

Enormous export potential

Large domestic market

Efficient multi-fiber raw material manufacturing capacity

Entrepreneurial skills

Large pool of skilled and cheap work force

Vast textile production capacity

28
 Flexible textile manufacturing systems

WEAKNESSES
Govt. Regulations

Huge unorganized and decentralized sector

Poor supply chain management

Use of out dated manufacturing technology

Imports of cheap textiles from other Asian neighbors

Increased global competition in the post 2005 trade regime under

WTO

CURRENT FACTS ON INDIA TEXTILE INDUSTRY

Cottonexports couldnt pick up owing to disparity in domestic
and international cotton prices.
Substantial increase of Minimum Support Prices (MSPs).
The productivity of cotton which was growing up over the years
has decreased in these years.
Acreage under cotton reduced about I% during 2014-15.
India retained its position as world's second highest cotton
producer.
Imports of cotton were limited to shortage in supply of Extra
Long staple cottons.

TEXTILE INDUSTRY IN KERALA.

The first cotton textiles mill was established in 1883in Kallai near
Kozhikode by P.SSanthappaChettiyar and M.GuptanNamboothiripad
know, as Malabar spinning and weaving mill. The commercial

29
production was started in 1887. Later in 1976 the mill was taken over by
Government of Kerala and handled over to Kerala state textiles
corporation. The second mill presently called Parvathi Mills Ltd. Was
started in 1884by James Darragan, an English man using l9 acres of land
donated by the Maharaja of Travancore. In 1888,the mill was sold to
another British industrialist named AT VIN. ln I932 the management
was taken over by Kerala Textiles Corporation. In April 1974, the mill
was nationalized under sick textiles undertaking (nationalization) Act
and was made a unit of National Textiles Corporation (NTC)Limited
Bangalore, which is a subsidiary of NTC Delhi. Sitaram Textile Ltd.,
another oldest mill was wished in 1903 as a Private Limited Company.
Balaramalyyer started it. Later due to mismanagement and labour
trouble, company was liquidated in I954.

The factory was gutted down due to fire in 1959 and spinning
production was completely stopped. The Government of Kerala
purchased this unit as a result of liquidation and public auction in
1972, with the modest start of these mills, the number of cotton textile
mill rose to 31. The government of Kerala has announced in state
assembly on March 29, 1994, its Willingness to start 5 more spinning
mills, one each of Kazargod, Kozhikode, Trissur, Kottayam and
Malapuram along with the commissioning of corporative spinning mill
at Alappy with a spindle capacity of 6000 spindles Cotton textiles
industries are concentrated in district of Trissur and Palakkad followed
by Ernakulum and Kannur. These four districts together account for
nearly 3/4th of the spinning mills in Kerala. The numbers of existing
composite mills are quite low i.e., only four in number, its growth during
the last 10 years is nil. Due to the unprofitable nature of composite mill,
Malabar spinning and weaving mill discontinued its weaving operation

30
and concentrated on spinning only. Calicut modern spinning mill once
turned sick is now taken over by a financially sound third party and
found earnings before the last, decade. There are 7 cotton textile mills in
Trissur including one composite mill. Kottayam stands last in the list
with only one state owned mill.

There are 16 private mill in Kerala of which 14 are spinning mills and
the rest 2 are composite mills. The national textile corporation has got
under it, 4 spinning mills and 1 Composite mill. The corporate sector
owns only 2 spinning mills. In Kerala the Trissur Corporative spinning
mills with an installed spindle capacity of 12,000 spindles is the smallest
mill followed by Kathayee Cotton Mills Limited with 14,860 spindles.

Another welcome feature was that a 100% export oriented unit, Past Pin
India Ltd. Started commercial production at Palakkad. These units are
located at Palakkad near Tamilnadu border. Another corporative mill,
Allepey Corporative spinning mill at Kayamkulam is yet to be
commissioned. Out of the 31 mills in Kerala, 14 are private sector, 8
under National Textiles Corporation, 4 under Corporative Sector and 5
under K.S.T.C.

4.2 COMPANY PROFILE

Anna group multi-production, multi core success story that began in

1968, evolved as a company devoted to the manufacturer of aluminum

31
vessels, in to a multidimensional giant with interest in various fields
ranging from spices to textiles.

Anna groups textile unit ,kitex limited was established in 1975

infrastructure is 1.2 million square feet of building area. Buyers of
garments are wal-mart , k-mart, sears and gerber, other products
manufactured by the company are scoobee day bags , travel day bags,
saras curry powder, saras ready to eat and ready to cook, chakson
vessels , anna group ,where quality is the buzz word. Has built success ;
and success has opened new vistas of exciting challenges. Anna
aluminum products span the entire range and commercial needs , and
have won the ISI mark for superior quality. Made from aluminum of
99.5 % purity, these products have conquered the domestic market, as
well as sizeable export market in the gulf, Africa and the U.S.A
Exclusive showrooms through outthrkerala and aeide retail network
carry the ANNA hallmark of quality from the cities to even the most
far flung village in kerala. ANNA GROUP expands its possibilities.
Aluminum sheets are manufactured at the companys state of-the-art
factory and snapped up by the construction industry.

Kitex garments ltd. Was incorporated in 1972. It made its public issue in
the year 1995. It is promoted by bobby m Jacob, kitex exports ltd. Saba
and sunny Varghese. It manufactures ready made garments childrens
wear nylon jacket & pants, polar fleece, etc )anna groups weaving unit
KITEX LIMITED was established in 1975. The company is engaged in
the production of fabrics made of cotton and other blends, grey cloth,
bed sheets and lungies. Through the years the company carved a niche
for itself in the highly competitive industry with its tradition of word
class quality

32
Kitex is engaged in the production of fabrics made for cotton and other
blends, grey cloth, bed sheets and lungies, kitex lungies are available in
four various type- executive, medium super, medium and economy all
period differently, KITEX WHITE gives you and carry of white dhotis-
single as well as double. It comes with streaks of color and gold to add
to the looks of your dhoties. They also have beautiful and wide range of
bedspreads under the label of sweet dreams. Through the years the
company has carved a niche for itself in this highly competitive industry
with its traditional of world class quality.

VITAL STATUS
Name : Kitex limited
Address : KizhakkambalamAluva
Registered : Kizhakkambalam
Nature of the incorporation : Private Limited Company

Nature of Business : Manufacturing of cotton textiles

& bag
Nature of Product : Industrial Products & Consumer
Products
Brand Name of the Product : Kitex
Total built up area : 16, 50,000 sq. feet, 500 modern looms,and
20million
Sq. meter of cotton, &cotton Blends.
Employment potential : 1800
Production Capacity : 3,500 sq. per day
Total Capital Employed : Rs 3, 39, 01,060
Annual Sales Range : 200 cores
Growth : Steady
Founder : Sri: M.C.Jacob
Chairman : Mr Bobby.M.Jacob

33
Director : Mrs:Mini Bobby Jacob
Managing Director : Mr Sabujacob Auditor M/s
Kolath& Co
Banker : Federal Bank, ICICI, Canara Bank.

Introduction to ANNA Group of Companies

More than four decades age in 1968, when Mr.M.C.Jacob founded the
Anna Aluminum Company, he made a break with the past. Belonging to
an affluent family of plantation owners, he ventured in to the risk world
of manufacturing industry and hoped for the best, while working very
hard to make his maiden venture to a great success. Today the group is
involved in manufacturing of aluminum sheets, circles, vessels and
utensils, spices, and fabric, school bags, garments and marine exports
etc. The Anna range vessels and utensils are highly popular in
domestic market and in the Middle East, U.S.A, Africa, and Australia.
The group of turnover is around 200 cr.

Anna Group, a multi core success story began in 1968 is now spread
heading the thrust in to the new millennium. From a company devoted to
the manufacture of aluminum vessels and utensils, it involves spices and
fabric, school bags, garments and marine exports. It has emerged as a
Multidimensional giant with interest in various fields ranging from
textiles to spices to baggage. Anna Group, where quality the buzz word
has opened new vistas of exciting challenges. Today Anna ranges of
product are very popular in domestic market and overseas.

34
Anna-Kitex group is one of the leading industrial groups in the state of
Kerala employing more than 12,500 personnel for the past 40 years. The
group is engaged in the manufacture of diverse products like garments,
textiles, school bags, travel bags, umbrellas, aluminum utensils, kitchen
appliances, branded spices, curry powders and ready to eat food which is
marketed in the famous brands of Kitex, Scooby-day, Anna aluminum,
Chackson and Saras. The Anna-Kitex group is a pioneer in the fashion
industry Anna Group, Where quality - the buzzword - has built success.

Anna range of vessels and utensils are highly popular in the Middle
East, USA, Africa and Australia. The organization comes under Anna
Group are as follows:
a. Kitex Limited
b. Anna Aluminum Company (Chackson)
c. Saras spices
d. Kitex Garments
e. Scoobeeday products pvt ltd

ISO CERTIFICATION

Kitex got ISO 9001-2000 IN February-2007. They are committed to

manufacture and deliver quality. Kitex Limited is the leading
manufacturer with ISO 9001 - 2000 in South India of all varieties of
Greige Fabrics, Yarn dyed fabrics, Dobby and Leno dobby fabrics made
of Cotton, Polyester cotton, Cotton Nylon, Cotton Flax, Linen, Cotton
Linen, Cotton Lycra, Polyester Lycra etc. They can do any weaves /
qualities like cambrics, sheetings, poplins, mulls, casements, drills,
twills, linos, satins, bed fords, oxfords, stripes etc. They have 525
running Looms of Sulzer, Picanol, Dornier &Cimmco making around
13,00,000Meters of fabrics every month. They are the leading
manufacturer with ISO 9001 - 2000 in South India of all varieties
of GreigeFabrics, Yarn dyed fabrics, Dobby and Leno dobby fabrics

35
made of Cotton, Polyester cotton, Cotton Nylon, Cotton Flax, Linen,
Cotton Linen, Cotton Lycra etc.

World Class Manufacturer

Customer Policy strategy Quality, Leadership,

process and Teamwork
people

Vision and Mission

Vision of KitexLtd.

a. To reach the excellent quality standards in the coming year

b. To keep in place with modern technologies and concepts
c. To organize supply of materials with minimum cost to
maximum extent possible without any compromise in quality
d. A world class manufacturing company focusing on all round
business excellence through Total Quality Management
System with committed leadership effective team work
delighted customers and satisfied employees in an
environment friendly organization.

Mission ofKitexLimited

Fabrics and processed fabrics as per the customer specification

efficiently in a professional and environment friendly manner, on time,
and at the right cost with at most customer specification to become a
world class organization through improvement.

36
Objectives

1. Increase sales of value added item by 20% from the existing level.

2. Reduce rejection by 10% from the present level.

3. Reduce customer complaint by 10%.

4. Increase product range by introducing new inner garments

Product Details

Lungies

a) Executive
Superior quality lungies available in various designs and colours.

37
 MediumSuper
Comfortable lungies you would love to drape. Available in various designs and color
combinations.
Medium
Experience freedom and coolness with Medium range of lungies; comes to you in
warm colors and in various designs.
Economy
After a hard days work, jump into lungi to ease your tension, to sooth your senses
and to feel relaxed.

Dhothies
a. Smartline
White single dhothy with streaks of either dark red or dark blue or dark green lines,
which can be worn equally at home and outdoors.
b. Smartline Gold
Cream color single dhothy with streaks of Gold Jerry lines for special occasions.
c. Ready wear
Plain white single dhothy you'll love to drape. The anywhere, anytime wear.
d. Samrat
Pure cotton white double dhothy with lines in 5 different colors to choose.

Bed Sheets
Following are the types of bed sheets
Sweet dreams 50
Sweet dreams 60
Sweet dreams double sheet
Dbl.Side 60 bed sheet + 2 pillow covers
Solitude double sheet
Sweet dreams king knight
Duplex / solitude bed sheets + 2 pillow covers
Soft dreams king size + 2 pillow covers
Sweet dreams DS + 2 pillow covers

PARAMETERS NUMBER OF PERCENTAGE

RESPONDENTS
Cyclical 16 40
PARAMETERS NUMBER 38 OF PERCENTAGE
PARAMETERS
ordering system NUMBER OF PERCENTAG
RESPONDENTS
PARAMETERS
Fixed ordering NUMBER20 OF PERCENTAGE
50
Director import 20 RESPONDENTS 50%
E
Short
Localterm
system
source 16 16
RESPONDENTS 40%
40%
Long
All of
Yes term
Both
the above 4 204
40 10%
100%
50%
10
Both
TotalTOTAL
No 040 4040 100%
0%10
100
17. which supply chain strategy is mainly adopted in kitex ltd ?

Supply chain responsiveness

Supply chain efficiency

Can you rank the following components of inventory

decisions based on your priority ?

factors Rank 1 Rank Rank 3 Rank Rank 5

(5) 2 (4) (3) 4 (2) (1)
Cyclical
inventory
Seasonal
inventory
safety
inventory
sourcing
Product
availability

39
 Can you rank the form of inventory normally handled
at kitex ?

factors Rank 1 Rank Rank 3 Rank Rank 5

(5) 2 (4) (3) 4 (2) (1)
Raw
material
inventory
Maintenanc
e inventory
Spare parts
inventory
Work in
process
Finished
goods

Please specify the cost for carrying inventory mainly in

kitex ltd and rate it ?

Rate 5 Rate 4 Rate 3 Rate 2 Rate 1

FACTORS
(5) (4) (3) (2) (1)
Storage Cost
Breakage Cost
Damage Cost
Insurance & Tax
Accounting Cost

40