a organisational study on Duroflex allapuzha

Organizational Study at Duroflex Pvt. Ltd.

Marthoma College of Management and Technology, Perumbavoor Page No. 1

CHAPTER - I

INTRODUCTION



1. Introduction

Organization is the integration of various departments and its functions.

Organization study deals with critical evolution and analysis of all the

aspects of a part icular firm. Duroflex Pvt. Ltd. is one of the leading

organizations in India. The Company has around 50 years’ experience in

the field of coir product manufacturing, particularly i n the

manufacturing of rubberized coir products. It’s an ISO 9000 -2001

company, incorporated in the year 1963. Duroflex coir is manufactured

using eco-friendly materials that are coconut fibre and 100% natural

rubber latex. The main product of the company is rubberized coir

mattresses. It is the largest sell ing mattress in south India and Duroflex

Pvt. Ltd. has been a member of international Sleep Product Association

The organizational study conducted in Duroflex Pvt. Ltd. , Alappuzha;

provide details regarding the various departments of the firm and also

helps to familiarize with its different functions. The firm comprises of

mainly 6 departments; includes Finance, Marketing, Production and

Human Resource, Purchase and Quality Control Department.

The details regarding the recruitment and the selection process which is

carried out by the human resource department is also flourished in the

report. The particular study gives a clear idea about the functions,

practices and the delegation of authority of Duroflex Pvt. Ltd. and also

the major issues facing by the company and by critically analysing the

issues, forming some suggestions are also part of reporting curriculum

The SWOT analysis, Suggestion and the conclusions which are given in

the report also provide us with the details regarding the various ways for

the betterment of the firm. The financial details of the firm and its

interpretations, flourished in the appendix of the report also help us to

know about the financial position of the firm.



1.1 Need for the Study

Combining the theoretical background, we have gained so far and the

practical study of the organization makes it possible to have a clear cut

understanding and a broader perspective of an organization and its

functional and the operational aspects. The organization study is

conducted to have practical knowledge about the various functions and

activities of an organization. The study done at Duroflex Pvt. Ltd. ,

Alappuzha helped me to attain the knowledge of functioning of an

organization. The study helped to know the activities of various

departments in the organization. The importance of each activity in an

organization is analyzed.

Various functions and operations of the company.

Production process performed by the company.

Financial and the accounting patterns of the company.

Human resource management of the company.

How a company is working successfully in such a competitive

scenario.

This Organization study also helps to have a clear understanding on

various practical applications of the theories wh ich we learned in the

text books.

1.2 Scope of the Study

This study was conducted at Duroflex Pvt. Ltd. , Alappuzha. The

duration of the study was one month. The study covered various

departments of Duroflex Pvt. Ltd.



The departments are:

Purchase Department

Production Department

Marketing Department

Finance department

Human Resource Department

Quality Control

1.3 Objectives Of The Study

To gain complete knowledge about the company ‘Duroflex ' Private

Limited, Alappuzha.

To analyse the organization chart and understand the functions of

the managers officers and Supervisors in different departments.

To identify the key function of each department and try to

understand how it is carried out.

To interact with personal and customers (bo th external & Internal)

of the organization.

To identify the strength and weakness of the organization.

To have a clear understanding about the various department of the

organization.

1.4 Research Methodology

Organization Study is a method to understand the various details about

an organization; it is a systematic method of collecting data about the

organization, understanding the collected data to learn more about the

organization and to present it in understandable manner. It is a type of

research. Research is an investigation to discover facts. Term research



refers to systematic methods consisting of collecting the facts or data

analyzing the facts and reaching certain conclusion.

1.5.1 Research Design

For the purpose of study both the primary data and secondary data are

collected.

Primary Data Collection

Data that has been collected from first -hand- experience is known as

primary data. Primary data has not been published yet and is more

reliable, authentic and objective. Primary data has not been changed or

altered by human beings: therefore its validity is greater than secondary

data.

Sources of Data Collection:

Sources for primary data are limited and at times it becomes difficult to

obtain data from primary source because of either scarcityof population

or lack of cooperation. Regardless of any difficulty one call face in

collecting primary data: it is the most authentic and reliable. Some

sources are:

• Interview: Interview is a face-to-face conversation with the

respondent.

In interview the main problem arises when the respondent deliberately

hides information otherwise it is an in depth source of information. The

interviewer can not only record the statements the interviewee speaks

but he can observe the body language, expressions and other reactions to

the questions too. This enables the interviewer to draw conclusions

easily.

• Observations: Observation can be done while lett ing the observing

person know that he is being observed or without let ting him know.

Observations can also be made in natural settings as well as in

art ificially created environment.



Secondary Data Collection

Data collected from a source that has already been published in any form

is called as secondary data. The review of literature in nay research is

based on secondary data. Mostly from books, journals and periodicals.

Sources of Secondary Data:

Secondary data is often readily available. After the expense of

electronic media and internet the availabili ty of secondary data has

become much easier. Some sources are:

Published Printed Sources: There are varieties of published printed

sources. Their credibility depends on many factors. For example, on the

writer, publishing company and time and date when published. New

sources are preferred and old sources should be avoided as new

technology and researches bring new facts into light.

Books: Books are available today on any topic that you want to

research. The uses of books start before even you have selected the

topic. After selection of topics books provide insight on how much

work has already been done on the same topic and you can prepare

your literature review. Books are secondary source but most

authentic one in secondary sources .

Journals /periodicals: Journals and periodicals are becoming more

important as far as data collection is concerned. The reason is that

Journals provide up-to-date information which at times books cannot

and secondly, journals can give information on the very specific

topic on which you are researching rather talking about more general

topics.

Magazines/Newspapers: Magazines are also effective but not very

reliable. Newspapers on the other hand are more reliable and in some

cases the information can only be obtained from newspapers as in the

case of some political studies.

Published Electronic Sources: As internet is becoming more advance,

last and reachable to the masses; it has been seen that much information



that is not available in printed form is available on internet, in the past

the credibility of internet was questionable but today it is not. The

reason is that in the past journals and books were seldom published on

Internet but today almost every journal and book is available online.

Some are free and for o thers you have to pay the price.

E-journals: e-journals are more commonly available than printed

journals. Latest journals are difficult to retrieve without subscription

but if your university has an e -library you can view any journal, print

it and those that are not available you can make an order for them.

General Websites: Generally websites do not contain very reliable

information so their content should be checked for the reliabili ty

before quoting from them.

Weblogs: Weblogs are also becoming common. They are actually

diaries written by different people. These diaries are as reliable to

use as personal written diaries.

Unpublished Personal Records : Some unpublished data may also be

useful in some cases.

Diaries: Diaries are personal records and are rarely available but if

you are conducting a descriptive r esearch then they might be very

useful. TheAnne Frank’s diary is the most famous example of this.

That diary contained the most accurate records of Nazi wars.

Letters: Letters like diaries are also a rich source but. Should be

checked for their reliabili ty before using them.

Government Records: Government records are very important for

Marketing, management, humanities and social science research.

Census Data/population statistics:

Health records

Educational institutes records

Public Sector Records:

NGO's survey data

Other private companies records



1.5.2 Method of Data Collection;

The major source of data includes.

Primary Data

Secondary Data

Primary Data

Primary data are those which are collected for the first time and this

happen to be original in character. For this study, Primary data involves

interviews with company executives, employees, customers.

Observations: Observation can be done while let ting t he observing

person know that he is being observed or without let ting him know.

Observations can also be made in natural settings as well as in

art ificially created environment.

Secondary Data

Secondary data involves the existing information available for the study

it comprises of:

Details were obtained from company files, records and documents.

Various published book and journals.

1.5 Limitations of the Study

The major limitations of the study include: -

As the company being private firm, researcher is unable t o obtain

certain needed information.

The researcher is unable to gather at the technical details of the

production process.

Unable to gather information directly from the department heads.

The time period for the study is very limited.



CHAPTER - II

GENERAL INFORMATION



2.1 Industry Profile

2.1.1 Indian Mattresses Industry

Mattress is defined as “products providing a surface to sleep or rest

upon that are fit for use by human beings for a long period of t ime,

consisting of a strong cloth cover filled with materials and that can be

placed on an existing support bed structure”

A mattress is a manufactured product or improvised arrangement to

sleep or lie on, consisting of resilient materials and sometimes covered

with an outer fabric or ticking. It may consist of a quil ted or similarly

fastened case, usually of heavy cloth, that contains hair, straw, cotton,

foam rubber, or a framework of metal springs. The word mattress is

derived from Arabic words meaning “to throw” and “place where

something is thrown” or “mat, cushion”. Historically, mattresses have

been filled with variety of natural materials, including straw and

feathers. Modem mattresses usually contain either an inner spring core

or materials such as latex, visco -elastic or other polyurethane? Type

foams. Mattress may also be filled with air or water or variety of natural

fibers, such as in futons. Most mattresses have a thickness from six to

eighteen inches

2.1.2 Mattress Manufacturing in India

The Indian mattress industry is nearly 50 years old. The mattress

industry in the country is a Rs5,000 crore industry of which only

Rs.1,500 crore worth mattresses are from the organized sector. The rest

of the business volume is coming from unorganized sector. Kerala, the

land of coir and latex, there were over 100 players in the industry. The

1990 also saw a change in the socio economic scene in the country.

Rapid economic growth, increase in number of working women,

changing lifestyle helped the mattress industry to develo p. Demand

elasticity and price sensitivity are the prominent characteristics of



mattress industry in India. Nothing that people spend one -third of their

lives in bed, Mattress Company are using research on sleep, sleep

deprivation, and consumer attitudes t o incorporate mattress in to the

refuge and sanctuary that consumer’s bedrooms have become. Now latest

technology to manufacture quality mattresses that combine coir for body

support and foam for maximum comfort are used.

After the independence of India th ere was a boom in the mattresses

industry. From 1950’s onwards, in order to the upliftment of the small

scale industries, government has provide3d subsides and grand for the

different units. Among which coir industry was one of among them.

From 1960’s onwards many mattresses manufacturing firms have

originated in the Indian industry. Many firms have changed or

registered into companies according to the Company’s Act 1956. With

the effect of mattresses industry, small scale industry like coir, strings,

cloths, manufacturing industry has also become very active. Now in

India there are more than 600 companies, who are manufacturing

mattresses. Among which:

Kurlon

Sunidra

Rubco

Sleep Well

Century Mattress

Duroflex

These are the leading companies in the Indian market.

India has attained a global achievement in the mattresses industry.

Because of globalization, Indian mattresses industry has extended. And

large quality of products is exporting on worldwide Indian coir

mattresses have a high demand in the global industry. The main

exporting factors are coir, rubber and latex. Mattresses industry is now

growing very fast, with the modern and technological advancement, coir

and mattresses industry occupies a major position in the world market.



Coir and mattresses industry not only includes manufacturing beds, but

also includes in the manufacturing of pil lows.

2.1.3 History of Coir Industry

Global Coir Trade Currently, the global annual production of coir fiber

is about 3, 50,000 metrics tons yet, even in the world’ stop two

producer’s, India and Sri Lanka, which account for about 90%of global

coir. Traditional uses for coir fiber include rope and twine, brooms, and

bushes, door mats, rugs and mattresses and other upholstery, often in the

form of rubberized coir pads. In 1980’s and 1990, western consumers

omitted to synthetic foams and fibers. S ince 1990, domestic demand for

coir pith as a peat moss substitute in horticulture has further pushed up

global production and prices in town, other coconut growing countries,

including Philippines, Thailand and Vietnam are now expanding for

production and export of coir fiber.

Historically, Sri Lanka had been the world’s larger exporter of various

fiber grades where as India exports largely value added products –yarn,

mats and rugs. Global trade volume for coir fiber, value added products

–yarn mats rugs and coir path now stands at about $140 million per year

with India, Sri Lanka respectively accounting for about $70 and 60

million that amount. They give work to 5,00,000+ regional employers

particularly in rural southern India and coastal Sri Lanka, ma ny of

them are women working part -time .The challenge for industry is to

sustainably expand markets for these versatile renewable resources

while maintaining its role as employer for the rural poor. This may

require producers to restructure form impro ve product consistency and

in particular develop novel applications. Jointly with their customers in

importing countries. Business, public agencies and the research insti tute

are now addressing this challenge in multilateral products in world

wide.



2.1.4 Rubberized and Coir Industries

Mattresses industries are rubberized industries which are mainly deals

with converting latex into rubber sheet, which are further used for

making tyres, rails, bands etc. graded and quality latex are further

converted into output which are mattresses pillows etc.

Coir and fiber industries are other main raw materials in the mattresses

industries. A majority of the population in Kerala are the workers in

leyth into coir. Coconut fiber obtained as curle3d or twisted ropes is

cured in a hot chamber, which gives the fiber the natural curl and

enhanced bounce. The curled ropes are then opened using customized

machines to give i t a natural spring structure.

2.1.5 History of Mattresses

Neolithic Period: The mattress and bed are invented. The first

mattress probably consists of a pile of leaves, grass or possibly

straw with animal skins over it .

3600 B.C: Beds made of goatskins filled with water are used in

Persia

200 B.C: Mattresses in Ancient Rome consist of bags of cloth

stuffed with reeds, hay or wool: the wealthy use feather stuffing.

15th Century: During the Renaissance, mattresses are made of pea

shucks, straw or sometimes feathers, stuffed in to coarse ticks, and

covered with velvet or silks.

Early 18th Century: Mattress Eire stuffed with cotton or wool

Mid-18th Century : Mattress covers begin to be made of quality

linen or cotton

1930s: Inner spring mattresses and upholstered foundations become

widely used, and artificial fillers become common.

1950s: Foam rubber mattresses and pillows are available for

purchase.



2.1.6 General Composition of Mattress

In general a mattress consists of the following parts:

The Core: the core provides for the support of the mattress. The

main materials which are being used as core are steel sp rings,

polyether foam and latex foam. According to mattress test horse

hair and coconut fiber are also used as core materials, e.g. , for baby

mattresses

The Shell/ Padding: The shell or padding consists of a layer around

the core. The purpose of this shell is to equalize the pressure on the

human body. All mattresses with a spring interior and some of the

mattresses with other core materials contain a shell . Often mattress

shells are composite structures. The materials mainly used are:

Polyether foam (polyurethane or PUR foam)

Latex foam

Horse hair and camel hair (both sometimes rubberized)

Coconut fibers (sometimes rubberized)

Polyester(PET or Poly- ethylene-terephthalate)

Cotton

Wool

Linen

Felt

Jute

Sisal

The production method of the shell depends of course on the material

used. In general the materials used are glues and/or sewed to each other

and on the core. Also staples are being used to fix the materials

together.

Tick/Ticking: The outer cover of the mattress is called the tick or

ticking. It provides a comfortable top layer.



The main woven materials used for the t ick of mattresses are:

Cotton

Polyester : (PET or Poly- ethylene-terephthalate)

Silk

Polypropylene

Nylon

Wool

Viscose

According to a tick manufacturer, ticks based are mainly used in th e

Southern European countries, whereas in the Northern European

countries cotton based t icks are preferred. The tick can be fixed to the

mattress by means of stitching or by tapes running through the mattress.

Sometimes the t ick is not fixed, but can be re moved from the mattress

by the customer.

Classification of Coir Industry

(a) Global Coir Industry .

Currently, the global annual production of the coir fiber is about

350,000 metric tons (MT). Yet, even in the world’s top two producers,

India and Sri Lanka, which account for about 90% of global coir fiber

production, combined this renewable resource is underutilized; local

coir mills process only a fraction of the available husks, which accrue

more or less round as a waste during coconut processing.

Traditional uses for the resilient and durable coir fiber include rope and

twine, brooms and brushes, door mats, rugs, mattresses and other

upholstery, often in the form of rubberized coir pads. In the 1980s and

90s, global exports of coir fiber fell by almost half , as Western

consumers shifted to synthetic foam and fibers. Then, since 1990,

rapidly growing domestic demand in India more than doubled global

production benefiting exclusively the Indian coir industry. Finally, since

‘2001, a rising Chinese demand for coir, an expanding market for coir

based erosion control products, and the spread of coir pith as a peat

moss substitute in horticulture has further pushed up global production



and prices. In turn, other coconut growing countries, including

Philippines, Thailand and Vietnam are now expanding their production

and export of coir fiber. These changes are also reflected in the

international trade in coir.

While in 1990 about 80% of global production was exported, growth of

the Indian domestic market dropped that rate to below 40%. Global trade

volume for coir fiber, value added products -yam, mats, rugs-and coir

path now stands at about $140 million per year with India and Sri Lanka

respectively accounting for about $70 and $60 million of that amount.

(b) Coir Industry in India

The coir industry in India originated about one century ago. The word

coir comes from the Malayalam word ‘Kayar’ meaning ropes made from

coconut husk fiber- a major cash crop in the agricultural sector. Indian

coir industry is an important cottage industry contributing significantly

to the economy of the major coconut growing States and Union

Territories.

Coconut husk is an important agricultural resource, which provides

livelihood to a large number of workers in the rural areas of the countr y.

About 5.5 lakhs persons get employment, mostly part t ime, in this

industry. The exports from this industry are around Rs. 70 crores. The

Eighth Plan programs for coir industry aimed at increased uti lization of

coconut husks for production of coir fiber, growth of the domestic

market.

India accounts for more than two-thirds of the world production of coir

and coir products. Kerala is the home of India coir industry, particularly

white fiber, accounting for 61 per cent of coconut production and over

85 percent of coir products. Although India has a long coastline dotted

with coconut palms, growth of coir industry in other coastal States has

been insignificant.

The white fiber sector which is largely located in Kerala refers to the

coir fiber extracted manually from fettered coconut husks by natural

enzyme action. The fiber so produced is golden yellow color. The



product of white fiber is Coir Yam, Ropes, Mats and Matting for export

and domestic market. The brown fiber is produced by mechanical

extraction form nature coconut husk. The product of this fiber includes

rubberized coir, curled coir, lower grade yam, etc.

Not more than 50 percent of the husks are utilized in the coir industry,

the remaining being used as fuel in rural areas. Production in the

cooperative fold is not more than 20 to 25 percent. The development

programs so far undertaken aimed at revitalization of coir cooperatives,

improvement in quality and products diversification. Efforts were also

made for exploring wider export markets for coir a nd coir products.

Judged from the increase in production and employment, the progress

has been rather slow and exports in physical terms have remained meter

or lets static.

Indian coir industry is an important cottage industry contributing

significantly to the economy of the major coconut growing states and

union territories, i .e. . , Kerala, Tamil Nadu, Andhra Pradesh, Karnataka,

Maharashtra. Goa. Orissa, Assam, Andaman & Nicobar etc. About 5.5

lakh persons get employment, mostly part time, in this industry. The

exports from this industry are around Rs. 70 crores. Coconut husk is the

basic raw material for coir products. Hence there is wide scope for

growth of coir industry.

During the seventh plan period, encouragement has been given for

expansion of home market through publicity and advertisement, product

diversification, adoption of new technology, research and development,

training for artisans, including women and social welfare measure for

coir workers.

The eighth plan programs for coir industry aimed at increased utilization

of coconut husk for production of coir fiber, growth of the domestic

market, strengthening of research and development to find out new uses

of coir fiber especially the areas of geo -fiber, fiber retardant, cement

and gypsum polymer development, acquiring of new technology like



PVC - tufted coir products, encouragement to cooperative movement and

providing social welfare and medical

Facilities to coir workers.

(c) Coir Industry in Kerala

The name of Kerala (Kerala in Malayalam) is deri ved from the name of

this tree (Kera in Malayalam means Coconut and Alms means Land,

Kerala means Land of Coconut). Everything from Kerala’s culture to

dishes is evolved around the coconut tree.

India accounts for more than two-thirds of the world production of coir

and coir products. Kerala is the home of India Coir Industry,

particularly white fiber, accounting for 61% of account productio n and

over 85% of coir products . Although India had long cost line with

coconut palms, growth of coir industry in othe r coastal station has been

signified.

Not more than 50% of the coconut hunks is utilized in the coir industry

the remaining being used as fuel in rural areas. Production in the co -

operative fold is not more than 20 to 25 %. The development

programmes so far undertaken aimed at revitalization of coir co -

operation, improvement in quality and products. Efforts were also made

for exploring wider export market for coir products. Judged from the

increase in production and employment, the progress has been rather

slow and exports in physical terms have remained more as let static.

Indian coir industry is an important cottage industry contributing

significantly to the economics of the major coconut growing stated and

union territories, ie. Kerala, Tamil Nadu, Go a, Orissa Assam

Lakshadweep etc. About 5.5Lakhs persons gets employment, mostly part

time in this industry.

During the seventh plan period, encouragement has been given for

expansion of home market through publicity and advertisement, product

diversification adoption of new technology, research and development,



training for citizens, including women and social welfare measures for

coir workers most of whom are SC/ST and women.

The eight plan programmes for coir industry aimed at increased

utilization of coconut husk for production coir fiber growth of the

domestic market. Strengthening of research and development of find out

new uses of coir fiber especially in the areas of geo -fiber, fiber

retardant, cement and gypsum polymer development, acquiring of n ew

technology like pue-tufted coir products, encouragement to co -operative

movement and providing social welfare, civic amenities and medical

facili ties to coir workers. Emphasis would be laid on mechanization

phased manner without affecting employment to make India coir

products competitive in the export market. Brown coir fiber production

would be encouraged by providing seed capital assistance.

Modernization of coir has been envisaged by providing intention for

installation equipment’s to make coir industry more competitive in the

export market.

Special training programmes have been formulated for women citizens.

Improved modern treadle rats would be provide to trained women

citizens to increase employment and earnings. Medical facil ities, crech

for children of coir workers, model coir village for SC/ST coir workers

and social welfare schemes would be implemented during the eighth

plan period

The coir industry is one of the most ancient traditional industries in

Kerala. The establishment of the first coi r weaving factory at Alappuzha

in 1854 by Mr. James Darrah marked the beginning of modem coir

industry in India. As the products enjoyed a very good market in

Europe, several foreign companies established their manufacturing units

in Alappuzha which had the advantage of plentiful availability of raw

material , natural facilities for rotting husks, and the cheap water

transportation of the place with European Tradesmen.



(d) Coir Board

The Coir Board was established by the Central Government under the

provisions of the Coir Industry Act, 1955. There is a Coir Research

Insti tute functioning at Kalavoor. The National Coir Training and

Designing Centre were also established at Alappuzha in 1965.

The coir Board is the competent authority by sponsoring new coir

industries under the government of India licensing rules and procedures.

The production of both brown fibers has increased substantially due to

the effort and encouragement of coir board.

2.1.7 Uses of Mattress

Generally speaking the function of the mattress to provide a comfortable

surface to rest or sleep upon. There are mainly two types of customers

for mattresses. They are:

1. Institutional Customers (Hospitals. Hotels, Railway, Army,

Recreational Institutional, etc.)

2. Private Customers (Private individual)

Insti tutional Consumers are not very likely to buy their mattresses in

shops in contrary to private consumers. They usually get them from

wholesalers or directly from the producers. The mattresses bought by

institutional consumer’s often severe specific purposes. These special

purpose products are not fully competing with m attresses for private

consumers, for mattresses for institutional use. Extra requirements often

apply as compared to mattresses for household use. So there seem to be

two relevant differences between private and institutional consumers

that have their effect on what can be considered competi ng products:

Functional requirements

Distribution system / availability



Specific consumer demands have resulted in different types of

mattresses that are available in the shops. Such specific consumer

demand may include for example:

Size

Price

Conformity (sufficient and overall parts of the body)

Durability

Damp permeability

Firmness/softness

Insulation value of the mattress (some people l ike a warm

mattress Or a mattress with a winter and summer side

Preferred sub-levels under each factor used for evalua tion by buyers in

the purchase of a mattress are:

Factor Preferred sub-level

Price (Rs) 1,500-2,500-4.500

Thickness 3”,4”,5”

Density(Kg/m3) 20,30,60

Color of tapestry Blue, Green, Yellow

Design of mattress Plain, Flowers, Line, Designs

Measurement 72x30, 72x42, 75x60

Foam (%) 10,20,30

Table 2.1: Uses of Mattress

The decision to purchase a particular model was the result of the utility

that the buyer perceived in combination with the factor sub -levels

existing in the brand. The selection of the brands by most of the

household is done by evaluating 2 -3 brands on the parameters like price,

softness, thickness, tapestry, design, brand name, weight, promotion

scheme etc. and after visiting 3-3 retail outlets. However, there were

strong regional brands in most of the markets. Some of the popular



brands in these markets were Kurl-On, Duroflex, Bedsy, Centaury,

Restolex, Starlite, Aaram, Coiron, Rilaxon.Sulfex, Sunidra and Rubco.

2.1.8 Market Share and Brand Evaluation

Indian mattress industry is a Rs.27.50 bil lion market where 73% belongs

to the established cotton mattress . The rubberized coir mattress industry

is worth Rs.5.50 bil l ion with the branded rubberized coir market worth

Rs.3.70 billion. Kurl -On is a leading player in the country with 25%

market share in the rubberized coir mattress followed by Duroflex,

Starlite, centaury and Aaram. Duroflex has a market share of 16%

followed by Starlite with a market share of 11% and Centuary with a

market share of 9%. While all the three brands have a national presence,

Aaram with a market share of 7% has a strong presence in De lhi and

North India. Rilaxon is strong in East, Restolex and Bedsy have a strong

base in Karnataka Ahile Coiron and Sulfex are popular brands in Kerala

and Tamil Nadu,

Most of these brands showed a sales growth of 5 -15 % during the last

two years. In addition to the ten popular brands, there are a host of

regional and local players both in the branded and the unbranded

category. Full PU foam and spring mattresses also ha d growing markets

with 55 and 1% market share respectively. The two major players in the

PU foam mattress market are Sleepwell and mm foam. Springwel is a big

player in the spring mattress segment.

2.1.9 Growth & Development of the Industry

Declining trend in demand for coir have recently revolted due to

china’s strongly growing markets for coir to be used in mattress,

furniture& geo textiles. New technologies for the conversion of coir into

value added products. Such as car scat tops &composition also p romise

to expand the global use of coir and offer opportunities the Indian coir

industry most improve the consistency of its products and familiarizes



itself with the structure of the respective markets present status of the

industry.

Coconut trees are grown in all parts of the country all parts of the tree

are useful providing food fuel timber by products and the raw materials

for numerous handicrafts and industries. One of the major raw materials

used in coir fiber it extracted from the external covering of the coconut.

It is natural biodegradable and environment friendly it is tough and

durable versatile and resilient resistant to flame and fungi, provides

insulation and helps sound modulation coir path in the dust after

extracting fiber hygroscopic in nature i t is good soil conditions and

substi tute for peak moss in horticultures. It is converted into organic

manure for soil improvement and higher yield. From the humble husk an

expert, employment oriented industry in Tamil Nadu for ‘peat moss’ s oil

conservation.

White fiber is abstained from green coconut husks immused in water

for 6-9 minutes. A mechanized process of extraction has been adopted

recently. Yet the traditional manual operation remains predominant.

The latter resulting in a product of higher tensile strength, even of twist

which has s greater demand. Yarn spun from white fiber is extremely

fine and soft textures with superior color absorbency and commands a

higher.

Recently coir from Alappuzha, where the company is loc ated has been

accepted worldwide as from other marketing destination “Alleppey Coir”

2.1.10 Future of Coir Industry

The coir industry in India has a history and tradition which dates back to

the nineteenth century. One of the major traditional industries of Indian

coir provides livelihood to lakhs of artisans in rural areas. This industry

took roots in India’s southern states along the coast line. Being 100

percentage natural moth proof, fungi resistant, biodegradable and eco -



friendly, today coir has become an article of every day use in modern

life with a product range encompassing mattress, matting’s, doormats,

garden articles etc.

The government set up the Coir Board under the provisions of coir

industry Act 1953 for the overall development of the coir industry. India

is the major exporter of coir products. About 40% of the coconut husk is

utilized by the coir industry. The extensive improvement in the

utilization level of raw material to 60% will lead to employment

generations up to 8 lakhs workers duri ng the close of eleventh five year

plan period. The industry also fetches crores of foreign exchange by

export of coir and coir products. It is expected that the export will cross

more than 1000 crores in XI the plan period. Now coir is exported more

than 100 countries.

A major portion of the population in the Kerala is dealing with rubber

cultivation and agriculture sector. As far as the small scale industry is

concerned, a half of the portion is dealing in coir and textile industry.

The major coir manufacturing units in Kerala are in Alappuzha and

Ernakulum. As far as the population in Kerala is concerned, only 22%

are professionals and employees, rest of them are small traders,

agricultures and cottage industries.



2.2 Company Profile: Duroflex Private Limited

History of the Company

Duroflex is a leading manufacturer of rubberizes coir mattress in India

Duroflex is a modem manufacturing- unit in India at Alleppey (Kerala)

Hyderabad (Andra Pradesh) and Hosur (Tamil Nadu), are continuously

translating the market demand into products that are used extensively.

Households and the comfort products industry worldwide. Late Mr. P.C

Mathew promoted Duroflex Coir industries Pvt. Ltd. In 1963 at Alleppey

Kerala with a view to use agro based inputs for the manufacturing of its

products. Subsequently in 1982, the manufacturing operations of

Rubrofibre Pvt. Ltd. Were bifurcated and Duroflex coir industries took

over the operations and management of the factory.

Duroflex had today three manufacturing units in Alleppey. Hosur and

Hyderabad and an extensive marketing organization with company sales

office and 1500 stockiest al l over India. Duroflex rubberized coir is

manufactured using eco-friendly materials coconut fiber and 1 00 percent

natural rubber latex form. The raw materials that the company Duroflex

uses are 100 percent natural and environment friendly. In the growing,

processing and production processes no harmful substances are used or

released. Duroflex has always adopted methods that encourages minimal

waste with minimum recycling .

Today Duroflex is the largest manufacturer -exporter of sleep products

from India with modern factories in Alappuzha, Hyderabad and Hosur.

Duroflex translates the market demand into product s that are used

expansively in households, hotels and hospitals. From humble beginning

in1963, Duroflex has 3 manufacturing units for rubberized coir matters,

one to make Natural coir -ply, Eco friendly plywood substitute developed

from in house R x D. Delegation sponsored by coir Board went to

Europe in the year 1953 with a specified goal of establishing more

advanced industries in the coir sector. The delegate gave minimum



importance for setting up rubberized coir factories in India. They have

reasoned that on both coir and rubber are available in India it will be

ideal to set up the factories in India for exporting finished products to

Europe and other countries. The coir board gave consent to seven for

importing machinery and setting up the units. At th e time all the

machineries were imported from aboard. The main suppliers of

machinery were Austria and Germany. Today the technology is available

in India.

M/s Duroflex (P) Limited has developed new technologies and

machinery for the manufacture of Rubberi zed coir products. They set up

3 factories with 100% indigenous machinery. The machines have much

greater output and more efficient than the imported machines. Late Mr.

P.C. Mathew promoted M/s Duroflex coir Industries (P) Limited in 1963

at Alappuzha; Kerala with view to use agro based inputs for manufacture

of i ts products. The company now and then is engaged in the production

and marketing of the mattresses, rubberized coir, pillows, bath mat, car

cushions etc. The plant site at Chungam spread over an a rea of 2 acres.

It is situated in such a place where transportation and nearness to market

and all other factors are available.

Duroflex products are known for consistent and standard quali ty and the

company gives priority to apply strict quality control i n its operations.

These are applied to procurement and processing of raw materials,

manufacturing of finished products and testing them to rigorous

standards. Company is primarily engaged in manufacturing and

marketing of mattress to the consumers. The Com pany also gives

importance to products and process development, development of plant,

machinery, engineering and introduction of new products

As a pioneer in manufacture of mattress, rubberized coir and foam

Duroflex has always sought to maintain leadershi p. Research and

Development at Duroflex have continuously come up with newer



processes and machines that enhance production, productivity and

quality at all stages technological edges that remain always on Duroflex

Shop floors. Fully automatic rubberized coir plant with all accessories,

auto weight check, auto vulcanizing, clothing, cutting, pipe edge,

numerically controlled auto packing, automatic batch PUF plant,

transversal cutter, peeling machine, and cloth winder, Duroflex Is the

largest exporter of sleep and comfort products from India. Through Its

export wings “Coco Latex Exports Pvt. Ltd.” is the largest Indian

exporter of sleep and comfort products. Duroflex’s modem

manufacturing and R & D centers are continuously translating the

market demand into products that are used extensively in the comfort

product industry worldwide. Company is engaged in export of its

products to Europe, Middle East arid Far East through Its subsidiary

company Duroflex Exports Pvt. Ltd.

To survive competit ion in the customer driven market, Duroflex Pvt.

Ltd. Hosur has established a quality management system at Hyderabad

and Alleppey units. The objective of the company is to supply

rubberized coir products, which meet the ever increasing demands of the

customers at competitive prices by continued process improvement and

by the application of “State of the art technologies?. In tune with the

market and ever growing needs of its customers, Duroflex is constantly

developing new products that offer a greener option to the world .

2.2.1 Objectives of the Company

1) To attain the major market share

2) To offer high quality products for the customers

3) Ensure cost effective products

4) To create satisfied customers

5) Be a major part of the socio -economic development of the societ y.



6) Create good relation will the dealers as well as customers

7) Increase the profitability of the company to attain consistent

development .

2.2.2 Corporate Vision

Market returns and customer complaints together not to exceed

0.4% of the sales

On-time delivery to distributors/dealers as per commitments

Continual Improvement In product and quality control processes

with to reduce costs

Accident free work by exercising established safety practices.

2.2.3 Corporate Mission

Our quality philosophy Is to p rovide rubberized coir products of high

quality and reliabil ity at optimum cost, meeting customer implied

specification 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-of-the-art technologies.

2.2.4 Management of Duroflex Private Limited

No invitation is issued to the public to subscribe for any share in

or debenture of the company.

The number of members of the company (exclusive of the persons

who are in the company and of the persons who were the members

of the company while In the employment and have continue d to be

the member after ceasing to be In the employment of the

company)is limited to fifty provided that when two or more

persons jointly



Hold more than one shares of the company they are treated as

single member.

2.2.5 Board of Directors

Mr. George L. Mathew BA, BL- is currently the managing

director of Duroflex Pvt. Ltd., comfortek Advanced Products Pvt.

Ltd and Unisun Technologies Pvt. Ltd. He is also promoter

director of Coco Latex Exports Pvt. Ltd. , a 100% Export oriented

unit.

Lt.Col. Mohan V. Andrews (Rtd.)-has joined the company as

General Manager in 1998. He is a director of s Duroflex Limited

and Director of Coco Latex Export Pvt. Ltd.

Mr. Shaji Joseph BSc, FCA- is the director with Duroflex

Limited. And also director Coco Latex Export Pvt. Ltd

Mr. Raju C. Jacob - is the managing director with M/s Chackson

Chemicals Private Limited

Capt. Jojo Chandy (Rtd.) - is the managing director with M/s

Sahyadri Rulax ( India) Private Limited

Lt. Col. S.J Gosh (Rtd.) - joined the company in 2004 as General

Manager after his tenure with the army.

Mr. Firdosh H. Sholapurwala - is the managing director of M/s

Comfortek Private Limited and proprietor of M/s .Hormuzdji and

Sons Private Limited., manufacturers of special equipm ent for the

Indian defense forces and other private customers.

2.2.6 Duties and Powers of Board of Directors

1. Unless and the company in general meeting otherwise decide, the

number of directors is not to be less than two and more than ten

2. The board of directors of the Duroflex Private Limited is the

family member itself

3. Currently the board of the directors of the company constitute

eight members



4. The board of directors has power to appoint any one or more

persons as special or technica l or commercial or executive director or

directors for such t ime and on such terms as they determine. The

board may subject to the provisions of the act delegate’s son off its

body as it thinks fit and any committee so formed can in the exercise

of the powers so delegated confirm to any regulations dun way from.

Time to time be imposed upon it or then by file board.

5. The board of the directors has the power to co-operate one or

more persons to be the director so that the number is not to exceed

ten. The board has the power to appoint alternate directors to the

manner mentioned in section 313 of the act.

6. Subject to the provisions of the section 314 of the act with regard

to an office of place of profit a director may hold any other office

under the company, expect that of an auditor, in conjunction with the

office of directors on such terms as to remunerate and otherwise as

the board of directors may arrange

7. Subject to the provisions of the Act, the director may from time to

time raise or borrow any sum of money for and on behalf of the

company from the members or other persons, companies, any

financial institution or banks, or any of the director may himself

advance money to the company on such interest as may be approved

by the directors. The board ma y delegate such borrowing power to

any one or more of the directors including the managing director.

8. Subject to the compliance with section 297 of the Act. A director

or his relative, a firm in which such director or relative is a partner

in such firm or private company of which the director is a member or

the director is capable of entering into any contract with the company

for the sale or purchase or supply of any goods, material or service or

underwriting the company’s shares or debentures.



2.2.7 General Manager

The day to day business affairs of the company is entrusted with and is

under the control of the general manager. He is one who is responsible

for al l the ups and downs of the company. In Duroflex Pvt. Ltd. the

marketing

Department and the Human Resource Department is directly handled by

the general manager

2.2.8 Company Secretary

The company secretary is responsible for the company’s compliance

with the various provisions under the companies Act 1956.

2.2.9 Departmental Managers

Each department of the organization is headed by respective managers.

Each of them do their best of attain departmental objective and there by

accomplish the goal of the organization. Each manager is accountable

for the activities of their respective department s.

2.2.10 Achievements

Duroflex is an ISO-9001:2000 certified company. This certification has

been administered for Duroflex by the American Quality Assessors

(AQA). Duroflex private Limited is also a member of the international

Sleep Products Association (ISPA) and therefore updated on the latest

developments in quality and technology in the category. Duroflex

private l imited is only mattress manufacturer in India to win the coveted

ISO 9002 certification. The company exports its products to over 25

countries with 45 years of rich experience.

2.2.11 Duroflex Group Profile

Duroflex group of companies are:

1. Duroflex Private Limited

2. Coco Latex Private Limited



3. Alleppey Latex

4. Unisun Technologies Private Limited

2.2.12 Duroflex Private Limited

Duroflex Private Limited began as a small plant in Alleppey; Kerala Is

now a leading Indian and International brand. Over the years Duroflex

has evolved from mattress manufacturing plant to sleep Products

Company with wide range that includes pil lows, cush ions, spring

mattresses, polyurethane foam and high -tech comfort systems with

products used extensively in homes and in the hospitality and health

care Industries. A member of the International Sleep Products

Association (ISPA), Duroflex had 8 factories ac ross Kerala, Tamil Nadu

and Andra- Pradesh which is ISO 9001:2000 certified by the American

Quality Assessors (AQA).Duroflex has 60 stockist and over 3000

distributors across India .

2.2.13 Coco Latex Private Limited

An export oriented unit and a group company, Coco Latex specializes in

100% natural and eco-friendly mattresses. Manufactured strictly from

100% natural rubber and natural coconut fiber, Coco Latex products are

in great demand in the environment - conscious markets of Europe. Made

to exacting 5852:1990 specifications, some of these products are made

with 100% natural expandable graphite and are fire -retardant. Coco

Latex’s manufacturing and R & D centers are located in Kerala for easy

access to the natural ingredients. Coco Latex’s own manufacturing

facili tates at Munnilave, Palai are where the latex foam products are

manufactured. Coco Latex products are cert ified by ECO Institute,

Germany, LGA, Oeiko Tex- Standard 100, Germany and SATRA, UK.

2.2.14 Alleppey Latex

Established in 1994, Alleppey Latex is a group concern and deals with

centrifuged latex production. Alleppey Latex sources latex from its own

organic plantations as well as others and has its crumb Rubber Factory a



Palai. A major share of the production of the Alleppey latex is consumed

by Duroflex and Coco Latex. Centrifuged latex is the raw material for

manufacture of rubber based products like foam rubber, elastic thread,

Balloons etc. Alleppey latex is also in the process of obtaining organic

Certification by one of Germany’s leading certifying organizations.

2.2.15 Unisun Technologies Private Limited

Unisun technologies. A Duroflex group concern, strives to promote

technically and commercially viable clean energy products and services

worldwide. Founded in 2000, Unisun has the potential to become a lead

player in the group tomorrow. Unisun has a range of products across the

solar (Thermal and Photovoltaic), bio -fuel, bio mass, waste to energy

and small Hydro and wind energy spectrum. Based in Ban galore. Unisun

has clients in the domestic, corporate and industrial segments. Towards

furthering the needs to concentrate on sustainable energy sources,

Unisun has also organized two international events in Bangalore with

participants from India and abroad.

2.2.16 Business Overview

Duroflex has today 3 manufacturing nit in Alleppey. Hosur (Tamil

Nadu), and Hyderabad and an extensive marketing organization with the

company sales office and 1500 stockiest all over India. The main

product of the company is rubberized coir mattress, which are bought by

domestic households, hospitals and bulk users. The company also

manufactures industrial products of rubberized coir for packaging air

filtrat ion, bus and railway seats and carpet underlay. The company ia

engaged in export of its products to Europe, Middle East and Far -east

through its sister company Coco Latex Private Limited.

Duroflex Rubberized coir is manufactured using eco -friendly materials

coconut fiber and 100 percent natural rubber latex foam. The raw

materials the Duroflex uses are 100% natural and environmental

friendly, in the growing, processing and production process no harmful

substances are used or released. Duroflex has always adopted methods



that encourage minimal waste with maximum recycling. Dur oflex

products are known for consistent and standard quality and the company

gives priority to apply strict quality control in its operations. These are

applied to procurement and processing of raw materials, manufacturing

of finished products and testing them to rigorous standards. Company is

primarily engaged in manufacturing and marketing of mattress to the

consumers. Company also gives importance to product and process

development, development of plant and machinery, engineering and

introduction of new products. As a pioneer in the manufacture of

mattresses, rubberized coir and foam Duroflex has always sought to

maintain leadership. Research and development at Duroflex have

continuously come up with newer processes and machines that enhance

production, productivity and quality at all stages -a technological edge

that remain always on Duroflex shop floors. Fully automatic rubberized

coir plant with accessories, Auto weight check, Auto vulcanizing.

Clothing cutting, tape Edge, Numerically controlled auto pa cking,

automatic batch PUF plant, traversal cutter, Peeling machine and cloth

winder.

Duroflex is the largest exporter of sleep and comfort products from

India. Through its export wings “Coco Latex Exports Pvt. Ltd” is the

largest Indian exporter of sleep and comfort products. Duroflex’s

modem manufacturing unit and R & D centers are continuously

translating the market demand into products that are used extensively in

the comfort products industry worldwide. Company is engaged in export

of its products to Europe, Middle East and Far -East through its

subsidiary company Duroflex Private Limited. To su rvive competition in

the customer driven market, Duroflex Private Limited, Hosur has

established a quality management system at Hyderabad and Alleppey

units. The Objective of the company is to supply rubberized coir

products, which meet the ever increasing demand of the customers at

competitive prices by continued process improvement and by the



application of the “state -of- the-art technologies”. In tune with the

market and ever growing needs of its customers Duroflex is constantly

developing new products that offer a greener option to the world.

2.2.17 Corporate Address

1) Duroflex Private Limited

Registered Head Office and Factory -1 P. B No.3808

Chungom, Alleppey- 688010


Factoiy-2

No 7 First Floor

KodavaSamaja Building

Main, Vasanthnagar

Bangalore- 560 052, India


No. 6 Komaranplly village

HosurAnekal Road

Betugondappally P.O

Dharampuri Dist.Hosur-635125


P 4/6 Industrial Development Area

Nachram, Hyderabad- 501507



2.3 Product profile

Duroflex Private Limited deals with various kinds of sleep comforts, in

which mattress is the main product that they comply with. Company is

manufacturing different kinds of mattress in different verities. Their

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

people. The quality of their product is the main reason for their

recognition and good will that they possess all over India and also

abroad. Following are the range of mattress available for Duroflex .

2.3.1 Duroflex Rubberised Coir Mattress

Rubberized coir mattress is the combination of natural materials like

coconut fiber and rubber. The combination creates a s heet that provides

natural comfort, firm support , allows for air circulation and non -

absorbent. The various verities include :

Duro Foam

Dream On

Premium Special

Kwilt Special

Bliss

Crown Regular

Crown Ortho

Golden Bliss

Bodyline

Seasons

2.3.2 Duroflex Spring Mattresses

Spring mattress, across the world, is now synonymous with luxury. It is

to cater to this customer who demands greater comfort that Duroflex

manufactures Springtek, its range of high end spring mattress. Springtek

mattresses are manufactured with the very latest technology available

today.



Especially important springs of German technologies and the very latest

Italian CNC quilting machines bring you the best spring mattress

available in India today. The various verities are:

Bonnel Spring

Pocketed Spring

2.3.3 Duroflex Polyurethane Foam

The DuroGold PUF range of products offers pure flexible PUF, which

ensures that the product retains its shape and provides comfort and

support for years, unlike regular foam. Machines are espec ially designed

to meet specific customer requirements. CNC based high precession

cutting machines also enable the cutting of foam blocks into diverse

shapes and sizes to manufacture high quality molded pillows and other

PU products. The different types are :

LD (9.5D-10D)

13D, 16D & 18D

18SS&20SS

23D & 28D

32D & 40D

2.3.4 Duroflex Pil lows and Cushions

Duroflex offer comfortable and healthy range of pillows and cushions.

The pillow needs to be designed scientifically as it need to provide the

right cushioning for your head and neck. It is essential that your pillow

hold your neck and spine in a neutral position. The different varieties

are:

Dimple

Sensus

Flexi Puf

Dream On Pillow



Rubberized Coir Pillow

Duro Pil low

Supersoft Bolster

Eco Pillow Settee

Comfy-Puf

Elegant

Supersoft Cushions

The company is also producing and exporting the following items also.

2.3.5 Rubberised Coir Sheets

It is made from coir and natural rubber latex blended with anti-oxidant

for long life.

Table 2.2: Rubberised Coir Sheets

Applications

Sheets and pads for mattress fully made up mattresses.

Furniture

Carpet Underlay

Fillers

2.3.6 Natural Latex Foam

Natural rubber is eco-friendly bio degradable and renewable with an

elasticity that cannot be achieved by any other materials. It comes in pin

core and cavity sheets

Density 60 to 150 g/m3

Thickness

20 to 200

Size (mm) 2000(L)*2000(B)

Application

Fully made up mattresses

Sheets and pads for mattresses

Furniture

Carpet underlay Filters



Table 2.3: Natural Latex Foam

Applications

Mattresses

Cushioning

Furniture

Composite mattress

Latex Foam Pillows

These are pillows made with 100% natural rubber.

2.3.7 Fully Made-Up Mattresses

European technology meets Indian coir to give the world the finest in

sleep products. Export brands: Bodyl ine, Quilt , Coir and spring,

Sandwich Combo, Comfortek. Other brands are Bliss, Crown, Seasons,

Premium SDL and Standard DM.

2.3.8 Curled Coir

The spring fiber made from curling of raw coir.

2.3.9 Price Specification

Quilt

Rubberized Coir Density 80kg/M3+5%

Thickness 75/100/150

Size up to(mm) 2000(L) 2000b

Top quilted

Density 60 to 90 kg/m3

Thickness 25/30/50/100/15

0

Size (mm) 120000)*

1200(B)

Application Mattresses

Cushions

Furniture



Cloth Printed cotton

Construction Rubberized coir and 15mm

Price 1343

Standard DM

Rubberized Coir Density 80k/g

Thickness (mm) 50/75//100

Size up to(mm) 20000(L)*2000(B)

Top quilted 25mm flexi PUF

Cloth Handloom jacquard

Construction Rubberized coir with100%

Price 3252

Premium SDL



Size up to(mm) 20000(L)*2000(B)

Top 20mm PUF/20D5%

Cloth Satin Fine Weave

Construction Rubberized coir

Price 3455

Bodyline



Size up to(mm) 20000(L)*2000(B)

Top 20mm PUF/20D5%

Cloth Mill cloth

Construction Rubberized coir pure real

Price 4233



2.3.10 Branches of Duroflex Private Limited

Duroflex has mainly three branches:

Alleppey

Hosur

Hyderabad

Fig 2.1: Branches of Duroflex pvt.ltd

2.3.11 Distribution Channel

Company is following direct distributing channels, from the factory the

products are directly handed to the distributors. Then it is the duty of

the distributors to supply the product in supply the products according

to the order to the dealers. There is no middleman. The company have

mainly 5 distributors around Kerala which can be represented as:

Fig 2.2: Distribution Channel

In all these distribution centers there is corresponding warehousing

facili ty which is known as “Duroflex Depots”. In these depots a large

volume of products can be stored safely.

2.3.12 Needled Punch Coir Sheets

Rolls with or without rubber and with or without machine

Density : Up to 1200 gms/square meter

Duroflex

Alleppey Hosur Hyderabad

Distributors

Trivandrum Alleppey Cochin Calicut Thrichur



Thickness : 12mm(l/2)

Size: 2000mm width up to 29 meter length or cut piece.

2.3.13 Advertisement

Advertisement is one of the main promotional activities that is to be done

in order to increase the market share and to meet the competit ion in the

industry. In every annual budget of Duroflex Pvt Ltd. The company set

apart around 8% of i ts profit for the advertisement purpose. The companies

conduct the get together of its main distributors and dealers in or der to

collect the feedback. It is on the basis of this information. Company

decided the amount that is to be reserve for the advertisement purpose.

Company is not directly involved the advertisement purpose. For making

better advertisement company seeks assistance from an external agency

called “Jellita” an advertising agency in Kottayam. The agency has decided

the punch line for the Duroflex mattresses “brings romantic in you”.

2.3.14 Pricing Strategy

Duroflex is following ‘single price policy’. It means there is no

discrimination among classes. This price policy does not find favour

with quality buyers who feel that they should have been charged much

lower prices than the small - lot purchases. The company has goodwill

among mattress industry, so the competitors pricing policy will not

affect very much.

2.3.15 Types Of Products

Duroflex mattress is the main product of Duroflex Private Limited.

Some other items in the product range include:

Duroflex pillows

Duroflex cushions

Duroflex bed sheets

Duroflex mattress

Duroflex pillow cover



CHAPTER - III

ORGANIZATION STRUCTURE



3.1 Organization Structure

Fig: 3.1: Organization Structure

BODs

MD

CEO

GM

Company Secretary

Sese

Accountant &

Admin Manager

Office Manager Factory Manager

Accounts

Assistants

Cashier Dispatch I/C Purchase I/C

Sales I/C Supervisor Supervisor

Workmen Workmen



3.2 Production Department

Production is the functional area responsible for turning inputs into

finished outputs through a series of production process. The Production

Manager is responsible for making sure that the raw materials are

provided and made into finished goods effectively. He or she must make

sure that the work is carried out smoothly, and must supervise

procedures for making work more efficient and more enjoyable.

Fig 3.2: Production Department

CEO

GM

Factory Manager

Purchase in Charge Lab in Charge

Supervisor Supervisor

Workers Workers



3.2.1 Production Flow Chart

Figure 3.3: Production Flow Chart

Start

Start

Latex Preparation Heating of Rope

Untwisting of Rope

Distribution of Rope

Latex Spraying

Fleece Drying

Cutting and Stacking

Pre Pressing

Hot Pressing

Vulcanization

Trimming

Furnishing

Inspection

Despatch

Waste Breaker

Trimming

Waste



3.2.2 Production Process

The production process is done under the strict control of the Factory

Manager and other supervisors. The process begins from the

procurement of the raw materials and ends in the packaging and

dispatching process. The raw materials used for the production includes

the natural latex and coir. The step in the production process include

procurement of raw materials, quality control and processes, latex

compounding, rubberizing, vulcanizing, hot pressing, cutting, quilting,

finishing, and packing. All these process is done by using modem

machines and operated by skilled people. The coconut fiber which is

obtained in twisted or curled form is cured in hot chamber, which gives

the fiber the natural curl and enhanced bounce. The twisted ropes are

converted into natural spring structure which is the basic raw mat erial

for the mattress production.

These fibers is carded and formed into sheets which are sprayed with

compounded natural rubber latex to form resilient fleeces dried. These

fleeces are then placed in layers, hot pressed, vulcanized and machine

cut to specified dimensions. The result is a resilient form that last long,

has a high level of firmness, is non -absorbent, allows air circulation and

provides natural comfort.

The coir sheets and quilted or non-quil ted cloth are stitched together

using automatic tape edge machine. After sti tching the machine

undergoes quali ty check. Then it is carefully packed using automatically

controlled semi-automatic packing machine. This ensures a new crisp

look to each mattress



3.2.3 Production Planning

The factory Manager will receive the work order for the amount of

products that Is to be produced. A copy of the work order will be give n

to the dispatch section also to ensure the accurate amount of products.

Mostly the outers are placed by the dealers of the company to ensure the

proper supply of the products in the market. The orders are placed

mostly through telephone. The production is mainly done for the export

purpose than the domestic sale. More than 60% of the production is done

for the export purpose. The agents in the foreign countries placed the

orders for the products. Mainly the export Item includes the bare sheets.

3.2.4 Material Requirement Planning

MRP provides t ime scheduling information specifying when each o f the

material , parts and components should be ordered or produced. The

companies MRP aims at improving the plant operating efficiency.

Improvement in the efficiency provides a base for saving the cos t of

organization and increase in the margin follows:

1) Reorder Level: the company reaches its reorder level in 20 days.

Before reaching the minimum reorder period the factory manager should

ensure that there will be enough raw materials in the store for the

smooth functioning of the production process. The company must not

reach a situation where the production is not carried done due to the

lack of materials

2) Plant Efficiency: Duroflex has highly efficient plant in

production. In 1 hour the plant has a capacity to procure 300 kg of units.

But the company is not utilizing the entire capacity. The pro duction is

done according to the order.



3.2.5 Resources Management

MD and GM of Duroflex determine and provide the resources needed for

the implementation of the quality management system and continually

Improve its effectiveness to enhance customer satisfaction by meeting

customer requirements.

3.2.6 Procedure for Non-Confirming Products:

There is a well-established and maintained procedure for identification

of product non-conformity and resolving them prior to delivering the

product to the customers or to prevent in advertent use or in further

processing. It helps to minimize the number of times non -conformity

doesn’t get during a predetermined inspection/audit and gets iden tified

later during processing.

3.2.7 Reporting Of Non-Conformity

Any employee can point out non-conformity. Authority to decide the

disposition and verification of effectiveness of action on non -conformity

shall be with concerned executive/manager. For product related

conformities concerned executives/manager has authority to stop further

processing of non-conformity is resolved satisfactorily

3.2.8 Store and Ware House Management ;

Duroflex Private Limited has mainly 5 distributors in Kerala and total

21 all over India. In all these 5 distribution centers the company has

their own depots in order to store the finished products. These are

commonly known as Duroflex depots and here a large volume of product

can be stored safely.



3.2.9 Waste Management

In the product process there is no much waste. The 20 -25% of the waste

mostly is the trimming waste. This is again used in the production

process by recycling process.



3.3 Human Resource Department

Human Resource Management (HRM) is also a management function

concerned with hiring, motivating and maintaining people in an

organization. It focuses on people in organizations. In simple sense,

HRM means employing people, developing t heir resources, utilizing,

maintaining and compensating their services in tune with the job and

organizational requirement.

The main functions are;

a. Conducting job analysis

b. Planning Labor needs and recruiting job candidates

c. Selecting job candidates

d. Conducting orientation and training programs for new

employees.

e. Managing wages and salaries

f. Providing incentives and benefits

g. Appraising the performance

h. Communication with employee9 interviewing, counseling,

discipline)

i . Training and developing managers

j. Building employee commitment



3.3.1 Department Structure

Fig 3.4: Department Structure

3.3.2 Recruitment and Selection Process

The recruitment policy of the company is done by the top level

management of the organization headed by the CEO. For the recruitment

of the employees in the lower level management, no specific policy is

followed. For the factory employees of the organization is selected from

the local people, who have got experience in manufacturing pr ocess. To

fill the vacancies in the higher level a set of procedure is followed,

which includes;

Making media advertisement about the vacancies

Scrutinize the application form

Invite eligible candidates for the interview section

CEO

GM

Employees



The interview is done by the company management committee, which

includes the Board of Directors, External Directors and senior personal

of the organization. Sections collected by personnel Department

Time officer

Security section

Disciplinary section

3.3.3 Time Officer :

The office keeps the entry and exit of every employee, it looked after by

a time officer and other clerks. The function of the time officer is as

follows:

1) To check the punch card

2) To see the strength of the in -workers sorting and packing

3) To keep the adminis tration record of al l the employees

4) To maintain the attendance register of al l the employees

5) Make necessary salary statement

6) Issue leave application

3.3.4 The Security Section

This section provides overall protection for the company. In this secti on

there is a security officer and under him there are two securit ies guards

in each shift . The man is charge of security is responsible for the overall

security of the firm. The firm has certain rules and regulations. The

guards have to report to the security officer from time to time. The main

duties of the security section are

To issue gate pass

To keep a record of incoming and outgoing vehicle



Safeguard the company premises

To check loading and unloading materials

3.3.5 Performance Appraisal

The performance of the employees is appraised on the basis of their

commitment towards the work, regular attendance and the quality of

work done. The performance appraisal process is shown below.

Fig 3.5: Performance Appraisal

Establishing Standards

Communication Standards to the Employees

Measuring Actual Performance

Comparing Actual With the Standards

Discussing Reports with the Employees

Taking Corrective Actions



3.3.6 Grievance Handling

As every person is unique in the character and the behavior, there are

changes to arise grievances in the organization between employees or

between employees and management. In Duroflex Private Limited, there

is less chance of occurring disputes. If any su ch problem arises, the

company handles it by the method of open surveys and hearings. And

enquiry committee is also formed to enquire about the matter and on the

basis of the reports submitted by committee and also by hearing the part

of the employees; the management will take immediate action, by giving

proper guidelines to the employees.

3.3.7 Wages and Salaries

Salary is fixed for the employees on the basis of their seniority and the

position of the employees. Wages are paid to the workers by the

complying with the Minimum Wages Act. The wages given to the

employees has to increases in proportion to the increase in production.

Along with the salaries and wages, employees are paid with the

additional bonus, long term incentives and perquisites. Bonuses are paid

on the basis on Bonus Act. Company is also providing medical care

facili ties, financial counseling, vacation travel etc.

3.3.8 Promotion and Transfer

The company will give promotion to the employees, if the employees

proved their efficiency in compan y matters. Mostly the company made

promotions if there is a vacancy in the higher level. Transfers are

comparatively less in the organization. It is done, if there are need

arises for experienced employees in any other office or branch of the

company.



3.3.9 Management Development Program

Duroflex Pvt. Ltd is using many techniques in order to develop the

managerial as well as the operational skil l of employees, which include;

On the job training

Coaching through work experience

Development program includes :

Training is given to the employees on past experience and

anticipated assignments.

Assessing manpower needs

Development of potential and capabilities of employees through

training and coaching.

3.3.10 Safety and Security of the Employees

Duroflex Pvt. Ltd is providing an accident free environment for the

employees. For those employees who are working in the production

department is giving necessary training on how to handle the

machineries safety. In the production department a supervisor is

employees to make inspection and to ensure the security of the

employees.

3.3.11 Participative Management:

In Duroflex Pvt. Ltd, most of the necessary policies and decisions are

made by consulting the employees of the organization also. The decision

is made by having a discussion between the top management and the

departmental heads. The department head will be able to collect the

suggestions and opinions of the employees who are working in the lower

level. Employees have the right to say their views and complai nts at any

time with the management. Thus all the decision are made after



consulting the opinion of all the employees in the organization. Thus an

effective participative management is prevailing in Duroflex Pvt. Ltd.

3.3.12 Employee Turnover

In Duroflex Pvt. Ltd, the employee turnover is comparatively very low.

But in Hosur branch of company the turnover is high because it is an

industrial area. The employees are not interested to work in a company

for a long period as the opportunities for employment is very high in

those places.

3.3.13 Attendance and Office Timing

Duroflex Pvt. Ltd is providing very good working environment for the

employees. So in almost all days the company ensures 100% attendance.

Working time is 9:30 to 5:30. The company is using at tendance register

and all the staff members have to sign on the attendance register before

9:30. For the factory workers the attendance register is kept at the

security gate. And every worker has a sign in the morning and at the

time of leaving.



3.3.14 Records Maintained By the Department

Personal File: the department keeps separate personnel fi le for

each employee who are permanently employed

Leave Register

Muster Roll

Insurance Record: Insurance record of human resources and

The factory premises are kept and updated by the personnel

department. (HR)

Salary and Wage Card: The department processes salaries and

wages at the end of every month and sends it to main office for

the receipt of amount to pay salaries.

Other Records: All records related to factory licensing with all

levels of government and local authorities are kept by personnel

department.



3.4 Finance Department

The finance department takes responsibil ity for organizing the financial

and accounting affairs including the preparation and presentation of

appropriate accounts, and the provision of financial information for

managers. The main areas covered by the financial department include:

Book keeping procedure

Creating a balance sheet and profit and loss account

Providing management information

Management of wages

Raising of finance





3.4.2 Functions of the Finance Department:

The main function of the finance department of the company is to

maintain the proper records of the financial details and to prepare the

final accounts of the company. The financial details of the company are

kept under the historical cost convention in accordance with the

generally accepted accounting principles. It also complies with the

company's act 1956. The company follows the mercantile system of

accounting and it recognizes income and expenditure on accrual basis.

The main functions include:

CEO

GM

Accounts Manager

Accounts Assistance Accounts Assistance

Accounts

Assistance



Maintain full records showing full .particulars including

quantitative details and the situation of the fixed asset

Maintain proper records of inventory and financial transaction

Vouching and Documentation of financial transaction

Preparation of final accounts

Preparation of budgets

Arrangement and renewal of working capital funds

Comply with the details of the income tax, VAT etc.

Passing and settlement of all miscellaneous advances.

Perform works connected with insurance coverage of fixed asset.

Keeping personal l ife of employees relating to salary computation

and annual increment.

Prepare profitability trend reports and wage analysis.

Quarterly and yearly financial report preparation.

Making banks statements

Preparation assisting the coordination at all works connected with

finalization of accounts.

Assisting statutory/ Vigilance / auditors from headquarters.

Make internal and external purchases.



3.4.3 Capital Structure of the Company

Table 3.1: Capital Structure of the Company

Duroflex is a private limited company, owned and managed by private

parties so the company has not issued any shares to the public. Capital o

the company is arranged in:

3.4.4 Source of Funds

Duroflex private limited has its source of fund mainly through equity

shares and loan funds. As i t is a private company the equity shares are

mainly in the hands of the private parties, which include the top

managers, board of directors and also close relatives of the company

officials. The shares are not issued to the public. The following table

shows the source of funds.

Table 3.2: Source of Funds

Authorized capital

Rs 10 crores

Paid up capital

24,040,870

SOURCE OF FUNDS (IN LAKHS) (2010-2011)

Paid up capital 20,640

Secured loans 51,643

Deferred tax balance 11,388

Reserves and surplus 97,472



3.4.5 Application of Funds

The entire funds raised by the company are utilized more effectively and

efficiently for various purposes. The following table shows the

application of funds.

APPLICATION OF FUNDS (In Lakhs) (2010-2011)

Net Fixed Assets 90,097

Net Current Assets 64,256

Investment 28212,

Table 3.3: Application of Funds

3.4.6 Investment Proposal

Duroflex made its investment on the basis of the annual returns.

Company has an investment of Rs 28,212,000 in different financial

institutions, which includes kotak Mahindra, ICICI Bank and Canara

Bank. The main portion of the investment is in the Canara Bank.

Current investment in stated at low cost or market price. Mainly the

investment is done on the basis of return.

3.4.7 Budget

Company is preparing the annual budget at the end of every financial

year. In this budget all the details regarding the income and

expenditure of the company is flourished. Along with the annual

budget the company also prepares an advertisement budget. In this

advertisement budget, the amount that is to be spending for the

advertisement purpose is detailed. The amount that is to be set apart

for this is decided on the basis of the market performance, demand of



the product, effect of the advertisement, etc.

3.4.8 Cost and Pricing

The raw materials cost constitutes 52% of the net billing rate (NBR) of

a unit of Duroflex mattress out of which the share of rubberized coir

was 50% followed by 8-10% of foam, 13-15%of cloth and 27% of

thread and label. The composition of other costs in the product was as

follows:

COSTS PERCENTAGE

Manufacturing overheads 8

Excise 4

Administrative overheads 3

Selling and Distribution overheads 24

Interest charges 4

Margin 5

Table 3.4: Cost and Pricing

Taxes (5%) and dealer margins were added over the NBR to fix the

maximum retail price (MRP). Duroflex offer a dealer margin of 29%.

3.4.9 Quality Control

A separate section called quality control system is working so

effectively and efficiently in the company to check the quality of the

product. Here the company ensures that the product is defect free a nd

make sure that the customer will be completely satisfied. After each step

in the production process, there will be all around check of the product.

After the manufacturing, the product will undergo a final inspection and

it will be certifying that there is no defect and the product is 100%

perfect. The final product is again tested to make sure that it performs to

the standards.



The company has established document and Implement a quality

management system meeting the requirement of ISO 9001:2000 and

intends not only to maintain the same but also continually improve it

with a view to deliver quality product.

Duroflex has:

Identified needed for the quality management system and their

application throughout the company.

Determine the sequence and Interaction of the process.

Determine the cri teria and methods required ensure the

effectiveness of operations and control of these process

Ensure the availabil ity of information necessary to support the

operation and maintaining of this process.

Establish methods to measure monitor and analyses the process

and implement action necessary to active plant results and

continued improvements.

3.4.10 Quality Objectives

Market returns and customer complaints together no to exceed to 1%

of sales.

Continued improvement in production and quality control process

with a view to reduce costs.

Accident free work by exercising established safety practices

Advices foreman in material handling on stocking, mixing and

transporting of raw materials for production

Undertake testing of raw materials in process material and finished

product as per BIS standard.

Prepare MIS (Management Information System) on production.

Report to the General Manager s Process controlled to achieve

quality as per norm.

Optimization of plant in the firm. Maintaining the quality of the

product as per norms fixed by the management.



Give authority among the workers to check the quality of the

products

Quality assurance should be done periodically / Advices every

employees to maintain the quality throughout the process .

3.5 Marketing Department

Marketing deals with identifying and meeting human and social needs.

The aim of the marketing department is to meet the needs of the

customers ' profitability. Marketing deals with customer value and

satisfaction. The very aim of marketing is to attract new customers by

promising superior value and keep current customers by delivering

satisfaction. The marketing department of Duroflex Private Limited has

mainly functions which include;

Identifying the needs of the customers

Ensure the supply of the product corresponding to its demand

Distribution of its product ti Its distributors

Providing warehousing and transportation facilities

Conducting market research

Meeting the sales target

Grievance handling

Adopting new methods to meet the competit ion

Providing pricing strategy

Sales promotional activities





CEO

GM

Marketing Executive

Distributors



3.5.2 Distribution Channel

Duroflex has a direct distribution channel. It supplies finished products

from factory to its distributors directly. Then it is the distributors who

provide the products to the dealers of the com pany. The dealers may

include the wholesalers and the retailers. There are no middle men.

Fig 3.8: Distribution Channel

The company has 22 showrooms oil over India. The location ere

Alleppey, Trivandrum, Calicut, Cochin, Trissur. Kannur, Goa,

Tirunelveli, Hyderabad, Hubli, Bangalore, Hosur, Mysore, Trichy,

Coimbatore, Madurai, Chennai, Vijayawada, Mangalore, Kolkata,

New Delhi and Vishakapattanam.

Factory

Distributors

Wholesalers

Dealers

Customers



3.5.3 Sales and Demand

Sales of the company are increasing day by day. In 2004 the sales were

Rs.39 crorcs. In 2005 it was 44 crores and in 2006 it was 55 crores and

in 2007 it shoots up to 60 crores and again reaches abov e 50 crores in

2008 and 2009. The demand for the product is always higher than the

supply. Particularly in the off seasons and in festival days l ike Onam,

Christmas etc. the demand shoots up like anything. In order to meet the

demand for the customers the company decides on the amount of

production based on the market survey and the feedback collected from

the dealers. It is the dealers who gives the information regarding the

demand for the product and to what extend the production to be

increased to meet the demand.

3.5.4 Pricing Strategies

Duroflex Pvt. Ltd follows the cost plus pricing mechanism. The pricing

range starts from Rs. 1900. The quality of the product doesn’t vary as

the price changes. All the product s are of the same quality. The p rice of

the product changes on the basis of the content of the Poly Urethane

Form (PU Form) in the mattress. When the thickness of the PU Form

increases the price of the product increases. The price of the latex which

used as the raw material or the manufacturing pro cess fluctuates rapidly.

The company tries to make the price of the product constant even if

there is huge variation of the cost of the raw material. The company is

following the ‘single price policy’ which means there is no

discrimination among the different class of people. This pricing policy

doesn’t find favor with quality buyers who feel that they should have

been charged much lower price than the small lot purchases, As

Duroflex Is highly reputed company in the coir mattress Industry, the

competitors pricing strategy has no influence in the company’s pricing

policy.



3.5.5 Advertisement

Advertisement is one of the main promotional activities that is to be

done In order to Increase the market share and to meet the competition

in the Industry. In every annual budget of Duroflex Pvt. Ltd the

company set apart around 8% of its profit for the advertisement purpose.

The company conducts the get together of its main distributors and

dealers in order to collect the feedback. It is on the basis of this

information; the company decides the amount that is to be reserve for

the advertisement purpose. The company is not directly involved in the

advertisement purpose. And agency called JELLITTA is doing the

promotional activit ies on behalf of the company. This agency has

decided the punch l ine for the Duroflex mattress “ brings romantic in

you”. The adver t ising methods are as follows

1. T.V advertisement

2. Display Board

3. Press advertisement

4. Brochures, catalogues and leaflets

5. Personal gifts

6. Goodwill gifts , calendars and diaries

7. Exhibition.

3.5.6 Sales Promotion

Duroflex Pvt. Ltd is doing a lot of sales promotion activities. The

company conduct meeting of all the main distributors once in three

months and collect the feedback regarding the satisfaction of the

customer and also about the moving item. They also conduct get

together of all the dealers of the company once in a year. As the

distributors. As the distributors and the dealers are more close to the

customers, they will be able to collect direct feedback from them. In

these meeting the company provides compliments for those dealers who

have made higher sales. This will encourage them to work more

effectively and efficiently to increase the sale of the company. In order



to increase the sales of the company, i t also provide free offers like

pillows and bed sheets in the off seasons and fe stival days. The company

also provides scratch and win offer, lucky coupon etc. as part of sales

promotional activities.

3.5.7 Warehousing

Duroflex Pvt. Ltd has a well-established warehousing facility. The

company has mainly five distributors around Kerala which include

Trivandrum, Cochin, Alleppey, Calicut and Trichur. In all these

distribution centers there is corresponding warehousing facili ty which is

known as “Duroflex depots” In these depots a large volume of products

can be stores safely. From these warehouses the products are supplied to

the dealers for the sales.

3.5.8 Market Research:

Duroflex Pvt. Ltd. Mostly conducts the market research in order to

identify the market share of the company and to ensure that the company

fulfills the need of the customer. The market research for the company is

mainly done by the Coir Board Association and also by the Rubberized

Association. On the basis of research conduct by these associa tions

strategic decisions are made on how to face the competition and how to

increase the market share. Market research involves:

1. Finding the competitors strategy

2. Analyzing new trend in the market

3. Movement of the product

4. Policies to be adopted

5. Identify changes in the market

3.5.9 Market Share Analysis

Duroflex Pvt. Ltd. Does the market share analysis by conducting the

market research. Til l 2008 the market share of the company in South

India is 20%. Now it increased.



3.6 Purchase Department

The main function of the purchase manager is to purchase raw materials.

According to the company the raw material should be kept at a quanti ty

required for twenty days of production. Whenever the stores fall below

the quantity, the store keeper informs it to the purchase manager.

Purchase manager prepares a -purchase note and forward it to the Factory

Manager. Factory Manager forwards i t to General Manager for fresh

procurement of materials.



CEO

GM

Factory Manager

Purchase Manager

Store Keeper



3.6.2 Evaluation of Suppliers and Contractors

1. All suppliers mid subcontractors used by the company shall be

evaluated.

2. All suppliers and subcontractors who are on the appro ved list of

DLA as on 1 s t February 2005 continue on the AVL.

3. All new suppliers and subcontractors are required to fill supplier/

subcontractor assessment form. Based on the assessment forms, the

suppliers/subcontractor assessment committee (SAS) consisting of

Managing Director, CEO, Factory Manager, shall assess and initially

approve the supplier/subcontractors. The criteria for approval of

supplier/subcontractors shall be the supplier/subcontractors standing

in the relevant business, financial background and track record. Upon

Initial approval by SAC a trial order is placed on the new supplier,

4. Upon satisfactory execution of the trial order, the purchase in

charge finally approves the new vendor for inclusion in AVL.

5. I However, when II has not been possible to obtain the assessment

form from the available Information. SAC evaluates them after filling

the assessment form from the knowledge of the

supplier/subcont ractor. 'The criteria for approval of these vendors

would be the same as for the other vendor.

6. Upon final approval, the approved supplier/subcontractors shall be

included in the approved vendors list (AVL).The approved vendors

list (AVL) shall be updated periodically at the discretion of purchase

in charge. The AVL may be maintained in alphabetic or any other

sequence for each Item purchased for easy reference. The Purchase in

charge is responsible for preparation and updating the AVL. Copies

of AVL shall be available to the Accounts Manager

7. The AVL is reviewed once every year in May by SAC to evaluate

the vendors

8. Vendors dropped from the AVL may reass ess and approved as per

the normal procedure after a gap of not less than one year.



Purchase Functions:

Source identification:

Source identification involves the identification of suppliers from which

purchase are to be made.

Source selection:

Source selection involves selecting the best supplier from different

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

Vendor rating:

This responsibility l ies with Duroflex 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 chemic als.

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.



Classification Of Material

The materials used in Duroflex are broadly classified as:

Raw Materials :

Latex, coir rubber chemicals, cloths and qualified fabrics, PU forms and

threads.

General Engineering Items :

Electrical items, Mechanical items, spare parts and capital item tools.

Stationary Items and Furniture :

Office equipments, papers & bill book, cleaning products.

Purchase Procedure

1. Requisition

The power of approving material requisitions is with Duroflex

headquarters.

2. Purchase Proposal :

After purchase requisition has been approved by the head office, the

order is placed.

3. Purchase order:

After fixing the right supplier, purchase order is prepared and placed

with proposed party. The order rate, quantity, delivery schedule and

terms of payment will be mentioned.

4. Vendor rating:

The responsibility lies with the Duroflex head office. Vendor rating is

done on the basis of product, price of the material and reports from the

production department in the case of latex or chemicals.

6. Receipt of materials :

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

to the section for inspection. Number of items passed and reason for



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

materials receipt report to be sent to the concerned section i .e.; purchase

and accounts. Original copy will be retained by the receipt store.

3.6.3 Vendor Rating

Raw materials are purchased from the approved vendor list. Approved

vendors list is prepared by analyzing the performance of supplier by a

method called vendor rating. Duroflex Private Limited has an approved

number of suppliers list for the raw materials. For the new supplier of

the raw materials, the company checks the quality and the rate of

materials. If the supplier ensures the minimum qualify and feasible rate

for the material, they will be included in the permanent suppliers list.

In Duroflex Private Limited. Vendor rating is measured by:

1) MAXIMUM POINT FOR THE QUALITY RATING IS 35: - The

factor is worked out as the quali ty accepted by the quanti ty supplied,

multiplied by 35.

2) MAXIMUM POINT FOR THE DELIVERY RATING IS 30: - The

factor is worked out as the number of the days allowed for the supply

divided by the number of the days actually taken for the supply

multiplied by 30

3) MAXIMUM POINT FOR THE PRICE RATING IS 20: - The factor

1.4 worked for as the lowest price quoted by the supplier, divided by

the price at which supply was procured multiplied by 20.



Table 3.5: Vendor Rating

Vendor Rating Actions To Be Performed

Between 75 and 90 Continue the vendor in the approved

vendors l ist (AVL)

Above 70 Send a congratulatory message to

motivate the vendor

Between 50 and 60 Discuss personally with the vendor

regarding improvement

Below 50 Stop business with the vendor



CHAPTER IV

SWOT ANALYSIS



4.1 Strengths:

1. Duroflex mattresses private limited produce quali ty product.

2. ISO 9001:2000 certification

3. The relation between the labors and the management is fair

4. Easy and quick availability of raw materials.

5. Good relation between dealers and distributors

6. Company produces products at varying price ranges

7. Duroflex has well developed corporate strategy.

8. Good financial management that exist in the organization.

9. Company following leadership through dedication and

coordination that encourage employees of the organization to work

towards their organizational goal.

10. The employees are very efficient.

11. Presence in international market.

12. Technology which supports maximum utilization of resources

13. Duroflex product had acquired wide market acceptance and

customer performances.

14. No trade union problems

15. Production wastage is less

16. Duroflex mattress division has lot of product varieties and price

ranges.

17. In the company there does exist a cordial relationship between

employees and top level management and among dealers and

distributors.

18. Through effective marketing Duroflex products could have

acquired wide market acceptance & customer preference wi thin a

short period of being established.

19. Duroflex has well developed corporate strategy; this is one of

their major strength.



20. Style of leadership that the company follows is Leadership

through dedication and coordination. That encourages employees of

the organization to work towards their organizational goals.

21. The strength of the company lies with the quality of their

product, wide range of products is capable to challenge variable

environment conditions, goodwill and customer service, technica l

advice marketing intelligence, wide network and interaction with

customers.

22. Effective management system is one of their strength.

23. Ability of the top level management to manage strategic changes.

24. Good financial management system that is existi ng in the

organization.

4.2 Weaknesses:

1. The main weakness is product price is high compared to other

competitors.

2. Duroflex has just entered in to North Indian market.

Transportation from South India to other market is a big burden they

are facing in the market.

3. Competition from unbranded products

4. Volatile nature of the raw material prices

5. Not utilizing the maximum production capacity



4.3 Opportunities

1. The environment friendly and inexhaustible nature of coir product

can find markets in further national as well as international markets

2. Duroflex is producing high quality products

3. Duroflex mattresses demand is higher.

4. Duroflex Private Limited introduced variety of products in to the

market

5. Duroflex Private Limited North Indian market which covers half of

the population of India of the population of India is not yet tapped.

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

relatively low cost.

4.4 Threats

1. Competition from the competitors and from unbranded

organizations. Similar companies like Kurl -on, Rubco, Sunidra etc.

2. Government policies

3. Shortage of fiber due to the death of coconut trees due to the

diseases and also the fluctuating price of rubber latex.

4. Duroflex Division has very high regional and domestic

Competition from other companies like Kurl -On , RUBCO and

Sunidra mattress.

5. Competition in the market is increasing day by day because of lot

of unauthorized companies in the market. They are products of low

quality at less price and attracting small customers. This is the major

threat that company is facing in the market.

6. Each and every company is facing threats in the market because

customer's requirements are changing day by day.



7. Change in the environmental factors can make influence in the

sales growth.

8. Taste of consumers are changing day by day.

9. Rising labour cost is another threat that each company faces today.



CHAPTER V

FINDINGS AND SUGGESTIONS



5.1 Findings:

The company is producing ecofriendly products :

Duroflex 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.

Company is located in a picturesque location

They are providing employment opportunity to the people in local

areas

Wages and salaries are fixed by the board

Political influences are not affecting the managerial

functions There is cordial relation existing between workers

and management:

Presence of good industrial relations with local unions

and there is greater co-operation between management and

employees.

Presence of good industrial relations with local unions and there

is a greater co-operation between management and employees.

Workers fear of loss of jobs and hence resist mod ernization of

plant.

Wage system is fair in Duroflex.

Workers health and safety are given prime importance.

Labour turnover is very low.

Trade union plays a vital role as bargaining agents. The

management is sometimes forced to accept unreasonable demands

made by the unions.



5.2 Suggestions

Considerably within a short period of time being established Duroflex 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, wastages and rejections are brought

down. Whatever be the orders, whatever lie the risk, whatever be the tasks Duroflex

will live up to the expectations of the people by providing a wide range of mattress and

other rubberized coir products, catering to diverse segment of the market, enforcing

strict quality measures and standards for its products .We can see Duroflex as non-

competent leader in the field of rubberized coir Mattress in the near future itself

1) Introducing New Product into the Market:

Duroflex Pvt. Ltd enjoys a very favorable position in the

market. The company can increase its market share by introducing

new products into the market. By launching variety products, the

customer can make their selection as per their wish, which will help

the company to increase the customer satisfaction.

2) Alternative Raw Material :

As the price of rubber and latex is increasing day by day, the

cost of production had shoot up. If the company is able to find out

new alternative for the raw material, without making any change in

the quality, the company will be able to decrease the cost of

production

3) Improvement in the Sales Promotional Activities:

By making more effective advertisement, the company will be

able to capture new customer and thereby increase the market share

4) Interconnecting All the Branches and Departments of the Company by MIS:



If the organization is able to connect al l the branches and

department of the company by using Management Information

System, the various data and the information can be easi ly

communicated. This wil l enable the company to reduce the delay in

sharing the information

5)OnlineSales:

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

wil l be able to increase the sales, mainly abroad. If the company

incorporates all the above said suggestions, the company will mark

its presence in the mattress industry by securing more than 50% of

the market.

6) In the present market Duroflex Mattress is facing overall demand

in the market, in order to tap market demand. Duroflex has to tap

their 100% utilization of existing machine capacity that they are not

yet fully tapped.

7) Duroflex has to adopt a strategy that would result in lowering the

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

market.

8) The company has to make strengthen their supply chain in other

states, in order to tap the target market.

9) The company has to take about the conveyance f acility to

employees.



5.3`Conclusion

This is an organization study report which will help us to analyse the

functions of various departments in the Duroflex Pvt. Ltd. the study was

carried out through the functional areas like production, finance,

marketing and human resource. Both primary and secondary data are

collected for the study. The corporation of the faculty and the company

personnel also play a good role in the successful competition of the

project. The study helped to understand the good relationship between

the employees and the top management. It also helped to analyse the

various strength, weakness, opportunit ies and threats of the company.

The report also made few suggestions for the company, which will help

the organization to become more competent.

The core competencies of the organization is as follows:

1. Professional management

2. Effective leadership

3. Cordial relationship between employees and top management

4. The company has well established network in industry with sound

manufacturing and marketing experience.

5. The company has adequate resources available for expansion.



BIBILIOGRAPHY



BIBLIOGRAPHY

1. Kothari C.R., Research Methodology, 2nd revised edition, New

Ag International (P) Ltd,2004 PP 10-60

2. Mamoria and Satish, Labour Welfare, Social Security and

Industrial Peac In India, 1st edition, Allahabad: Kitab Mahal

Publisher, 1983. PP 20-70

3. Annual Report, Duroflex.

4. Quality Manual, Duroflex

5. Company brochure and Prospectus, Duroflex.

WEBILIIOGRAPHY

Www.duroflexindia.in

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