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13-04-2013, 02:52 PM
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Organization Study Of Cannanore Spinning & Weaving Mills

Organization Study Of Cannanore Spinning & Weaving Mills


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INTRODUCTION

The origin of the term, ‘textile’ can be traced back to the Latin origin. The textile tradition of India is perhaps the world’s oldest textile tradition. The manufacturing plants for making textiles fabrics and textile products are termed as textile mills are considered to be one of the largest industries in the Indian subcontinent. The textile mills not only meet the requirements of the domestic economy but also offer employment opportunities to millions of workers in a variety of occupations. Since the past four decades the textile mills of workers in a variety of occupations. Since the past four decades the textile mills underwent a process of persistence growth and development.
Textile mills form the basis of textile production. Textile mills take either natural fibers or synthetic fibers and transform them into yarn, thread or webbing. After that the textile mills deals in producing fabric and textile products mostly produced by mean of knitting, weaving or tufting. Workers in the textile mills then use complex and automated looms to transport yarn into cloth. This process of textile production has come down to us through centuries.

TEXTILE HISTORY IN INDIA

Indian textile enjoys a rich heritage and the origin of textiles in India traces back to the Indus valley civilization where people used homespun cotton for weaving their cloths. Rig-Veda, the earliest of the Veda contains the literacy information about textile and it refers to weaving. Ramayana and Mahabharata, the eminent Indian epics depict the existence of wide variety of fabrics in ancient India. This epic refers to both rich and stylized garment worn by the aristocrats and ordinary simple cloths worn by common people. The contemporary Indian textile not only reflects the splendid past but also cater to the requirements of the modern terms. The Indian textiles industry is the largest manufactures in the world in terms of installed capacity. In addition, Indian textile industry is the largest manufactures in the world in terms of installed capacity. In addition, Indian textile industry is the lower cost producer of cotton in this world. The main advantage of Indian mills lies not on how low wage but also less capital incentive used older generation machine tools and antiquated foundries. This lead to lower capital cost in other words, Indian textile industry is concerned it has certain inherent strength in every sector. It has already access to domestic cotton in abundant measure and generally at prices, which are extremely competitive.

PROFILE OF NTC

National Textile Corporation (NTC) is single largest textiles central public sector enterprises under ministry of textile through its subsidiary company spread all over India. The head office of the holding company is at New Delhi. The strength of the group is around 22000 employees. The annual turnover of the company in the year 2004-2005 were approximately Rs 638crores having capacity of 1 lacks spindles 15000 looms producing 450 meters of cloth annually.
N T C was incorporates in 1986 with the main objective of the managing the affairs of 16 sick textile mills taken over by the government. N T C took over sicker textile mills under three nationalization. IDA acts rising its number up to 125 mills. In 1995 N T C with a view to modernization its 22 mills by its self has been drown a schedule of implementation plan and purchase order of new machineries are being placed from April 2006.
N T C to complete modernization its mill by December 2007. Simultaneously these mills are carrying out renovation of old machines. So that the machines proposed to be retained and have also under taken necessary civil electrical and other preparatory works for new machines so that the machines are commissioned within the scheduled timeframe.

THE HISTORY OF CANNANORE SPINNING & WEAVING MILLS – PALLOOR, MAHE

Cannanore spinning and weaving mill located in Mahe part of union territory of Pondicherry state, is a unit of N T C Bangalore. N T C is the one of the leading textile company under the government of India. It has a glorious past but now it is in a crucial condition. They struggle for the existence
This mill starts its production in 1964 under private sector. It was promoted by Mr. Kayath dhamodaran, due to the financial and labour problems the mill was closed on 23rd June 1971 (23/06/1971). Thereafter on 2nd may 1972 (23/05/1972) it was taken over by government of India under Industrial Development (Regulation) Act and substantially nationalized under Sick Textile Corporation (Nationalization) act 1974, effective from 01/04/1975.

OWNERSHIP OF THE FIRM

The owner of the Cannanore spinning and weaving mill is N T C (National Textile Corporation).
In the initial stage the Cannanore spinning and weaving mill is a private sector enterprise. The mill promoted by kayyath dhamodaran in 1964. Due to the financial and labor problem the mill was closed in 1971. After that, in 1972 the mill was taken over by central government under the industrial development act.
After that the mill was put under the control of National Textiles Corporation. The mill controlled by N T C (Andhra Pradesh, Karnataka, Kerala, & Mahe). The office of the subsidiary is Bangalore.

CAPITAL STRUCTURE

Capital structure can affect the value of the company by affecting either its expected earnings or the cost of capital or both. While it is true that financing mix cannot affect the total operating earnings of the firm, as they are determined that by the investment decisions. It can be affect the share of earnings belonging to the ordinary shareholders. The capital structure decision can influence the value of the firm through the earnings available to the shareholders. But leverage can largely influence the value of the firm through cost of capital.

TYPE OF LAYOUT USED

The mill has been following a system of process layout for arranging the machines and equipment. The layout also called functional layout. Here, machines performing similar type of operations are grouped at a one location in the production department. For e.g.: - all blowing machines are located at one place.
By following this type of lay out, it is possible to avoid the interruption in production process, due to the breakdown of individual machine. But here the mill has to inquire high cost in carrying the materials from one department to another. And here, there is chance to the specialist supervisors and inspectors at each process unit.
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